Things to consider when buying an industrial property

But it doesn't need to be a daunting experience. Follow this handy guide to find out what you should consider before you begin the hunt for your next industrial property.

Budget

One of the first things you must do before you embark on the buying process is budget accordingly. Industrial property is often surprisingly much more affordable than residential property but will differ depending on whether you wish to buy or rent. Investigate local market trends and predictions to gain a better idea of what you are willing to pay in your chosen area. You must also consider any start-up costs and legal or agent fees which can mount up depending on the length of time it takes to source your dream industrial property.

There are also a number of hidden fees and costs involved with purchasing industrial properties that do not apply to residential properties. For example, stamp duty, solicitor fees and business rates must all be considered when scoping out a new industrial premise. A kilang di shah alam may be able to offer an industrial space suited to the monetary and budgetary requirements of you and your business.

Location

Aside from determining your budget, you must also choose where you would like your industrial property to be located. Location should remain a key deciding factor during the entire duration of any real estate purchase. Inner-city premises tend to be more expensive but may generate more custom. Properties located further afield are likely to market for less but may present several geographical barriers. You must weigh up each of these factors when making an informed decision as to where your next industrial property should be located. The right location also depends on which industry the building is likely to be utilised for.

For example, heavy industry or heavy engineering properties require greater square footage than commercial properties. They tend to be located on the outskirts of towns and cities or in less desirable areas where they are less likely to cause pollution or a disturbance.

 

Long or short-term

Another thing you must consider if you are purchasing an industrial property is whether you are looking for long or short-term investment. While an industrial property investment may succeed short-term, it may not provide a substantial return on investment in the long run. Industrial property investment should not be viewed as a method to get rich quick. You must be prepared to wait for the right investment opportunity to come along. You also need to consider seasonal fluctuations, possible site regeneration and your own personal knowledge and experience of real estate investment. All of these factors can have an impact on whether you should opt for long or short-term investment.

 

How you will invest

As well as what you will invest in, you must also consider how exactly you will invest. There are a number of different ways in which you can be involved in the purchase of an industrial property. For example, you can invest in an industrial property directly or via a real estate crowdfunding platform. In real estate crowdfunding, investors contribute towards the development of a project, product, or company with the aim of making a substantial profit down the line.

With investments starting at $500, they require less know-how and are much lower risk than direct investments. They are also a great option for first-time investors or those with less cash to spare. If you plan to purchase an industrial property for your own business, you must choose one that best aligns with the needs and goals of the company going forward.

 

Health and safety

Before you purchase your next industrial property, you must consider what health and safety regulations are involved. Health and safety is one of the most important aspects of the industrial sector. There are a number of regulatory bodies and guidelines that you must adhere to when you become the owner of an industrial property. If you are planning to employ staff, you must be able to guarantee the safety and wellbeing of your employees at all times. This includes but is not limited to installing fire and smoke alarms, regularly servicing and maintaining all aspects of the building and providing suitable fire safety training in the event of a fire.

Purchasing an industrial property can be a sound investment. Whether you are looking to buy or rent, it is important you know exactly what you are looking for when you begin the search for your next industrial space.