[poconnor]

Industrial investments have traditionally provided excellent positive cash flow returns and this continues into the present day. Generally, rental income sits at around 6.5 per cent to 8 per cent, which is well above the interest rates supplied by the big banks. The loan-to-valuation ratio (LVR) can sit at around 60 to 70 per cent, which is a metric used to assess the risk an investment carries.

When in doubt, always ask questions and make an effort to understand the finer points. When you give ample thought to your prospective tenant and think about their logistical considerations, you can make a decision about your investment with a solid idea of how their business will operate and ultimately, how they make rental payments and fulfil any other leasing requirements.