Factories/warehouses seem to be the grab. Mate of mine can't build enough of them. We are talking 20 lots at a time and they sell out before built.
Factories/warehouses seem to be the grab. Mate of mine can't build enough of them. We are talking 20 lots at a time and they sell out before built.I get the feeling that there has been increased interest in industrial properties particularly from the SMSF sector. Relative to residential properties--commercial properties certainly provide a good yield (particularly in this low interest environment) and commercial leases are much more in favour of the landlord.
Small business owner buys it with his super and his company rents it back off him?Factories/warehouses seem to be the grab. Mate of mine can't build enough of them. We are talking 20 lots at a time and they sell out before built.
A lot of small online businesses seem to be buying them. I the tax perks help.Small business owner buys it with his super and his company rents it back off him?
My own experience was not flashy for industrial RE:For a while I thought that commercial/industry RE isn't a bad option for investment. Especially if you're like me and think the residential RE is overpriced. Though the entry requirements into commercial/industrial is different. Those are definitely things I have thought about when I can eventually add in some RE to my portfolio. Plenty of diversification with trading (stocks, different countries, etfs, futures) but have some RE isn't a bad idea either.
Need to keep more stock to guarantee supply due to pandemicA lot of small online businesses seem to be buying them. I the tax perks help.
The other thing is rents are ridiculous and it's not much different to loan repayments.
Worst case park a caravan in there and turn up the music with no neighbours at nightFor a while I thought that commercial/industry RE isn't a bad option for investment. Especially if you're like me and think the residential RE is overpriced. Though the entry requirements into commercial/industrial is different. Those are definitely things I have thought about when I can eventually add in some RE to my portfolio. Plenty of diversification with trading (stocks, different countries, etfs, futures) but have some RE isn't a bad idea either.
Spot on. I know some people that have done exceptionally well from commercial real estate but also a lot that mirrors your experience.My own experience was not flashy for industrial RE:
Went for niche small Warehouse, starting, sme, reseller emptying container etc
Great return in % then one by one, all sme failed and took 2 years with no income or nearly to sell
Never again in Australia.
We are NOT going toward a SME society.
So yes if you have a few millions for a medical centers etc otherwise be very careful.
Too many built and bought by investors for not enough customers imho.
Obviously depending on areas but was in a high growth area.thanks to RE growth, no loss and some profit but happy to be out
Spot on. I know some people that have done exceptionally well from commercial real estate but also a lot that mirrors your experience.
What is missing in a lot of real estate investment, both commercial & residential use and adequate *risk premium*... Especially now at such astronomically high valuations.
Friend of a friend last year during shut down in Queensland lost everything after many years of doing extraordinarily well in CRE.
This was my experience about 7ish years ago. Not sure if it's the growth in this area or what.My own experience was not flashy for industrial RE:
Went for niche small Warehouse, starting, sme, reseller emptying container etc
Great return in % then one by one, all sme failed and took 2 years with no income or nearly to sell
Never again in Australia.
We are NOT going toward a SME society.
So yes if you have a few millions for a medical centers etc otherwise be very careful.
Too many built and bought by investors for not enough customers imho.
Obviously depending on areas but was in a high growth area.thanks to RE growth, no loss and some profit but happy to be out
It may be different over East, due to the much higher density population, but here in the West commercial property can sit vacant for a very long time. As @Humid said business owners buying the property into their SMSF, makes a lot of sense, but guys I've known over the years who invested in commercial property didn't do very well.
I get the feeling that there has been increased interest in industrial properties particularly from the SMSF sector. Relative to residential properties--commercial properties certainly provide a good yield (particularly in this low interest environment) and commercial leases are much more in favour of the landlord.
At present you are right but we have been living in an artificial boom for the past 20 years.
When the shyte hits the fan, commercial can be empty for years, hence the higher yields
When the boom can stand up without government and central bank interference.How many years before “an artificial boom” becomes good management and hard work?
When the boom can stand up without government and central bank interference.
What is a government and what are its basic functions?
A government is an institution through which leaders exercise power to make and enforce laws.
A government’s basic functions are providing leadership, maintaining order, providing public services, providing national security, providing economic security, and providing economic assistance.
How many years before “an artificial boom” becomes good management and hard work?
Isn’t part of a government’s role to maintain economic security of the nation and its people?
Yeah but that shouldn't involve kicking the can down the road.Isn’t part of a government’s role to maintain economic security of the nation and its people?
Isn’t part of a government’s role to maintain economic security of the nation and its people?
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