Investing in Real Estate does not only mean buying some residential properties or office space. There are other options or way of earning money through real estate. The not so much explored territory would be earning through a factory. Yes, you may actually earn by using industrial real estate properties as your leverage. But before you start pounding the keypad of your phone or your keyboard in search for a factory, here below are some important matters that you should probably try to understand first.
Type and Use
Before buying an industrial property, you should first try to choose or understand what type of factory or property you would like to purchase. You should first clarify what type of business would you use the factory for and what type upgrades are willing to do. Establish an idea regarding your future market and how this property would contribute in generating income.
Money Matters
Apart from the use and type considerations, you should also try to evaluate the prices that are being offered in the market. In doing so, you should have already made prior research on the current market value and the amount you are willing to give. In line with it, you should also anticipate the possible rehab and the expenses it would incur.
Buying vs. Leasing
According to Simon Lambert, Managing Director of McGees Property in South Australia, via realestate, he cautioned that investors should not be too excited about the benefits of renting a property. For according to him, "It is the demand and supply equation for a property type and location which drives capital values over time. You should understand how the leases and terms secure your income, but it is finding long term value which is your most important goal."
There are other things to consider in choosing a factory to purchase, and perhaps the ones outlined above are the very basic considerations that one should try to comprehend. You may also consult property consultants in order be guided accordingly in the ins and outs of real estate investment.
