are Industrial units worth purchasing???

[eggnog]

I was just roaming through RC.com and I am seeing a lot of industrial/warehouse units for sale. I was just wondering if they are worth looking into. Do they suffer from the same drawbacks that a residential unit suffers - ie: low CG because you don't own the land, limited scope to improve buildings and surrounds, high body corporates, lower rent, etc.

Or is it preferable to save a bit more and just purchase an industrial property sitting on its own seperate land title

 

[Dazz]

Unless you've got a substantial swath of ressy props behind you, I'd suggest holding your fire until you have a bit behind you.

How much ressy equity would you be going into the deal with ??

 

[eggnog]

lol, got no resi equity behind me

got about 100k in savings and was thinking about purchasing a commercial property that has a current good tennant on long lease. Was looking at the 250-350k mark. Hopefully it would be CF neutral to positive so that it doesn't impact on my holding costs for my -ve geared resi

From your experience Daz is this a wise decision. Or is it better to acquire more resi equity before engaging in commercial. My strategy was to buy good CG properties (my first and only resi) then offset the negative gearing with a CF+ property - hence my enquiries into commercial.

 

[BV]

CFP,

If you don't have equity I take it you bought your ressi ip's late or you are over exposed.
What are you going to do if you have a 6 month vacancy or your tenant goes bust
and doesn't pay any rent for 12 months?

IMO wait till you get some equity and leave your cash into your offset account.
Cheers