What are the advantages of investing in industrial property?

These properties are listed for commercial, retail, or industrial use. They are basically located on the main areas, boulevards, or avenues with a range of other properties. Think of all your trips to the grocery store, you can see all the shops in a line. They all have one common goal- to generate income for their investors.

British people are very passionate when it comes to investing in property. They love investing in residential property, but they should not limit themselves to just that and think of moving beyond.

The trend of investing in property is increasing with the private investors and they are seeking for diverse opportunities in terms of investing in properties. Like, investing in industrial units to let is a wise option for them.
Earlier investing in commercial property was limited to professional investors like the insurance companies and pension funds.

But now, in the recent past, there has been a rise in the breed of investors, mainly small private investors who are experienced in purchasing flats or property on to let and are now progressing towards entering the market.  For them, investing in industrial units to let is a perfect and wise decision.

So, what is it that draws these investors for investing in commercial property and what are its benefits?

Primarily, investors can reap a higher rate of income as compared to the residential property, even though it is achieved with a lower rate of capital growth. The total rate of annual return on commercial places is more.

Secondly, the length of the tenancy agreement is a plus point. As in a residential place, the common period is 6 months which means a lot of investment from the side of the investor. But, in a commercial place the duration is much longer and stretches from 5-15 years which gives the investor an assured rate of return. The prices are altered every now and then to keep the rate in sync with the price inflation.

Thirdly, these properties provide more protection if the tenant does not pay the rent.

Source: ArticlesFactory.com

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