Industrial Property News: Investment Cash Flow – How Asset Managers Maximise and Build Returns July 2017

Why is there a stock shortage for industrial Property under $1,000,000?

Any one “in the know” understands industrial real estate rental returns yield up to three times more than residential property rental returns. Those investors will also have found purchasing an industrial investment property around the half million dollar mark, almost impossible.

The reason is that small industrial property prices had remained stagnant since the GFC - until mid last year when we saw prices steadily rising. Attending onsite inspections or auctions with my apprentices showed this price rise tendency accelerated towards the end of 2016. WHY?

Firstly, money continues to be cheap to borrow. Secondly, overseas investors snapped up properties until the government clamped down on overseas investors last year. Thirdly, very little new stock has been built in the past ten years because returns on investment have been too low to entice property developers.

But the main reason, is that small to medium enterprises have found it a better tax option to own their own premises and rent back to themselves, rather than to pay rent to someone else.

Prices have risen in excess of 35% in the past 12 months, even more for the smaller properties that used to be under $500,000

However, rents are now on the rise. This means old leases that are expiring and being rolled over for a new term, will be significantly higher - because the value of the property is now significantly higher.

So be quick! As an investor looking to earn great returns for future retirement income, now is the time to buy. Come to my next workshop to learn every thing you need to know about this little known, low volatility opportunity to boost your income.

About the Author

Lillie Cawthorn has been investing in industrial real estate (small factories and warehouses) in Sydney for the past 15 years and also has real estate investment interests in France and the United States. She initially invested in residential real estate across four countries, where she built and renovated homes for lease. Lillie is the best selling author of The Money Factory – How Any Woman Can Make An Extra $30,000 To $100,000 Passive Income.

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