Investing - Hartamas Real Estate https://hartamas.com Realising Your Dreams Thu, 16 Nov 2023 01:54:32 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 https://hartamas.com/wp-content/uploads/2022/08/cropped-hartamas-icon-32x32.png Investing - Hartamas Real Estate https://hartamas.com 32 32 Converting Agricultural Land To Industrial Use In Malaysia: A Step-By-Step Guide https://hartamas.com/converting-agricultural-land-to-industrial-use-in-malaysia-a-step-by-step-guide/?utm_source=rss&utm_medium=rss&utm_campaign=converting-agricultural-land-to-industrial-use-in-malaysia-a-step-by-step-guide Thu, 16 Nov 2023 01:51:37 +0000 https://hartamas.com/?p=26745 The demand for industrial land is rising in Malaysia as companies look to expand operations. Converting agricultural land to industrial use can increase property value and create jobs. But there’s a process to follow. This guide explains how to convert farmland to commercial use legally in Malaysia. The Benefits of Transitioning Agricultural Land to Industrial […]

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The demand for industrial land is rising in Malaysia as companies look to expand operations. Converting agricultural land to industrial use can increase property value and create jobs. But there’s a process to follow. This guide explains how to convert farmland to commercial use legally in Malaysia.

The Benefits of Transitioning Agricultural Land to Industrial Use

Converting agricultural land to industrial use has several benefits:

  • Increased land value and investment potential. Industrial land is worth more than farmland.
  • Higher rental income. Companies will pay more to lease industrial space.
  • Economic diversification. Industrial development provides jobs beyond agriculture.
  • Infrastructure improvement. New roads, power lines and sewer systems are built.

Factors to Consider Before Converting Farmland

Before applying to change agricultural land to industrial use, consider:

  • Zoning laws. The land must be zoned for industry. If not, apply for rezoning.
  • Environmental impact. Converting farmland may affect wildlife and vegetation. Conduct an environmental impact assessment.
  • Account for land acquisition, infrastructure and construction costs.
  • The site should have transport links and be viable for industry.
  • The land must be large enough to accommodate industrial facilities.

The Step-by-Step Process of Converting Agricultural Land in Malaysia

Follow these steps:

  1. Check zoning. Confirm the land is zoned for industry. If not, apply for rezoning.

  2. Gather documents. Title deed, site plans, location maps and a development proposal.
  3. Apply to the Land Office. Pay the application fee. Approval takes months.
  4. Get new land title. If approved, you’ll receive an updated land title indicating industrial use.
  5. Create a development plan. Include the industry type, jobs created and environmental impact.

Other Important Considerations

Also factor in:

  • Strategic location. Proximity to transport links and infrastructure.
  • Sufficient size. Land must accommodate planned facilities.
  • Detailed development plan. Cover type of industry, jobs created and environment impact.

Conclusion

With proper planning and preparation, agricultural land can be converted to industrial use in Malaysia. Follow zoning laws and get approvals. Conduct an environmental review. The end result is increased property values and economic growth.

Please consult our team for assistance:

[Image source: Photo by Maria Orlova]

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Getting The Digital Advantage https://hartamas.com/getting-the-digital-advantage/?utm_source=rss&utm_medium=rss&utm_campaign=getting-the-digital-advantage Mon, 06 Nov 2023 02:13:47 +0000 https://hartamas.com/?p=26508 Since its establishment in 1996, Malaysia Digital Economy Corporation (MDEC) and Multimedia Super Corridor (MSC) have driven digital transformation and adoption across Malaysia’s public and private sectors. Malaysia Digital is the engine that accelerates the growth of our ecosystem within the nine (9) focus areas; and drives digital adoption and opportunities in the digital economy […]

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Since its establishment in 1996, Malaysia Digital Economy Corporation (MDEC) and Multimedia Super Corridor (MSC) have driven digital transformation and adoption across Malaysia’s public and private sectors.

Malaysia Digital is the engine that accelerates the growth of our ecosystem within the nine (9) focus areas; and drives digital adoption and opportunities in the digital economy via the Malaysia Digital Catalytic Programmes (PEMANGKIN) and other competitive offerings.

Malaysia Digital’s inclusive approach aims to harmonize the growing demand for digital solutions with a steady supply of products and services, whilst continuing to strengthen the Enablers such as talents, infrastructure and regulations.

With more than 2,000 companies and counting under the program, the MSC Malaysia status is a designation that is highly sought after by many IT establishments in the country. It is also a mark of world-class service and remarkable achievement to a host of privileges granted by the Government of Malaysia to business entities.

So, who can apply for a MSC status and what are some of the benefits of doing so?

According to the official website, to be eligible to apply for the award of MSC Malaysia Status and the financial incentives, a company is required to meet the following criteria:

(a) a company incorporated under the Companies Act 2016 and resident in Malaysia;

(b) proposing to carry out one or more of the MSC Malaysia-promoted activities as listed in

  1. big data analytics (BDA);
  2. artificial intelligence (AI);
  3. financial technology (FinTech);
  4. internet of things (IOT);
  5. cybersecurity (technology/software/design and support);
  6. data centre and cloud (technology/software/design and support);
  7. blockchain;
  8. creative media technology;
  9. sharing economy platform;
  10. user interface and user experience (UI/UX);
  11. integrated circuit (IC) design and embedded software;
  12. 3D printing (technology/software/design and support);
  13. robotics (technology/software/design);
  14. autonomous (technology/software/design and support);
  15. systems/network architecture design and support; or
  16. global business services or knowledge process outsourcing excluding nontechnical and/or low value call center; data entry; and recruitment process

and has not issued any invoice for such proposed activities in Malaysia on the date of application

A company that has issued an invoice may be eligible if it has at least 60% Malaysian equity ownership and has issued its first invoice for such proposed activities in Malaysia not more than 12 months before the date of application, and not granted by the Government of Malaysia tax exemption in respect of the income from any activity on the date of application.

There are many advantages for a company to obtain the MSC status, including

  1. Foreign knowledge worker quota and passes
  2. Tax incentives
  3. Access to local and international markets and ecosystems
  4. Multimedia/ICT equipment import duty and sales tax exemption
  5. High powered implementation agency

For the full list of on how one can apply, please visit https://mdec.my/what-we-offer/msc-malaysia/apply-msc-status/application-process.

Are you looking for MSC status buildings for your company?

[Image source: Image by macrovector & lifeforstock]

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Building Your Own Custom-Made Warehouse https://hartamas.com/building-your-own-custom-made-warehouse/?utm_source=rss&utm_medium=rss&utm_campaign=building-your-own-custom-made-warehouse Tue, 06 Jun 2023 02:17:41 +0000 https://hartamas.com/?p=25751 As you may be aware, today’s industrial parks or warehouses are far from the dirty industrial regions most Malaysians are accustomed to, thanks to technological advancements and the shifting global economic scene, particularly following the pandemic. Some of these modern warehouse properties have sleek contemporary looks and are housed in clean, green surroundings with ample […]

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As you may be aware, today’s industrial parks or warehouses are far from the dirty industrial regions most Malaysians are accustomed to, thanks to technological advancements and the shifting global economic scene, particularly following the pandemic.

Some of these modern warehouse properties have sleek contemporary looks and are housed in clean, green surroundings with ample facilities for a healthy work environment. They even look good enough to live in!

However, as we know, these days the requirements for warehouses can be so niche due to the very diversified nature of businesses, which leads to the different operations and systems to be able to function efficiently and effectively. Hence, it is no surprise that there are also plenty of built-to-suit warehouses these days to cater to the different needs of business owners.

Amongst the advantages of building your own warehouse is that you are able to specifically decide on the configuration of how the warehouse would work to your advantage. Hence, you would be able to save a lot on unnecessary details with a dedicated team just working on what you need. However, do note that due to the specific configuration tailored to your needs, it can also be very difficult later on to sell or rent out.

It is also often advisable to engage a reputable developer to plan, construct, and customize the best property for the tenant at the best price. Always look out for developers with a good track record and reputation so that you are assured that in the event anything goes wrong, they will take full responsibility.

It is worth highlighting that a build-to-suit warehouse needs to have a minimal amount of funding for the project to be executed, which approximately 15% to 25% of the total construction cost to enable approvals, sanctions, site pre-development expenses, and foundation for the project to kick off.

This is because build-to-suit warehouses are so capital-intensive. It is also wise for the owner to make sure that the location and ingress, and egress of the warehouse are considered.

Warehouses are usually used to manufacture or store goods, hence there is a lot of traffic involved every day with the transportation of goods and materials. Therefore, the warehouse would need to be able to contribute to the efficiency of the process and not vice versa.

A tip would be to engage a reputable real estate agency or consultant who specialises in this area, so as to give you a perspective and idea of the nitty-gritty and technical details. More of than not, they are also familiar with the different locations and types of warehouses they have come across which will enable to them feed you with ideas and advice of some of the dos and donts before the warehouse is built.

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如何在马来西亚建立你的工厂运营? https://hartamas.com/how-to-set-up-your-factories-operation-in-malaysia-zh/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-set-up-your-factories-operation-in-malaysia-zh Tue, 11 Apr 2023 03:03:27 +0000 https://hartamas.com/?p=25293 English 马来西亚一直被吹捧为全球企业首选的制造业目的地之一。根据马来西亚投资发展局(MIDA)的数据,尽管有各种阻力,马来西亚的制造业在这一年里继续保持弹性。例如,在2021年第一季度批准的价值987亿令吉的投资中,制造业占594亿令吉,或值得注意的60.2%。外国直接投资(FDI)的流入量仍然强劲,占该行业总投资的89.1%。 事实上,为了在2021年加快自动化的采用,政府已经在国家经济重振计划(PENJANA)下为智能自动化补助金(SAG)拨款1亿令吉,在人民与经济强化策略计划(PEMERKASA)下拨款5000万令吉。SAG鼓励中小型企业和中层企业在其生产过程和操作中采用自动化和数码化。 那么,外国投资者如何在这里建立一个工厂?首先,你需要成立一个马来西亚注册私人有限公司(马来语的Sendirian Berhad – Sdn. Bhd.),其注册可以通过马来西亚公司委员会(SSM)进行,以符合2016年的公司法。 在着手申请工厂营业执照之前,确保你有一个适当的银行账户。根据MIDA的规定,申请工厂营业执照的资格包括一些政策,但不限于此: 公司股东资金至少250万令吉,或聘用至少75名全职受薪员工; 项目的每个雇员的资本投资(CIPE)至少为14万令吉; 公司的全职员工总数中至少80%是马来西亚人。雇用外国工人,包括外包工人,须遵守现行政策; 公司的全职员工中至少25%是拥有学位和/或文凭/证书的管理、技术和监督人员(MTS),产品的附加值至少为40%; 关于完整的要求清单,请浏览马来西亚投资发展局官方网站 www.mida.gov.my。 随后,你还需要获得原产地证书,这是一份证明特定产品原产国的文件。获得该证书需要满足的标准包括:产品在马来西亚制造并使用100%的本地材料;或在马来西亚通过改变六位数关税编码分类的改造过程制造,或至少含有25%的本地材料。 因此,请与Hartamas工业地产服务团队联系以了解更多在马来西亚建立工厂业务的步骤和程序。 [图片来源: Photo by Pixabay] How much housing loan you can get? Calculate now How much is your property worth? Get free report Interested in new launch property? Browse projects Looking for property for sale or rent? Browse listings […]

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马来西亚一直被吹捧为全球企业首选的制造业目的地之一。根据马来西亚投资发展局(MIDA)的数据,尽管有各种阻力,马来西亚的制造业在这一年里继续保持弹性。例如,在2021年第一季度批准的价值987亿令吉的投资中,制造业占594亿令吉,或值得注意的60.2%。外国直接投资(FDI)的流入量仍然强劲,占该行业总投资的89.1%。

事实上,为了在2021年加快自动化的采用,政府已经在国家经济重振计划(PENJANA)下为智能自动化补助金(SAG)拨款1亿令吉,在人民与经济强化策略计划(PEMERKASA)下拨款5000万令吉。SAG鼓励中小型企业和中层企业在其生产过程和操作中采用自动化和数码化。

那么,外国投资者如何在这里建立一个工厂?首先,你需要成立一个马来西亚注册私人有限公司(马来语的Sendirian Berhad – Sdn. Bhd.),其注册可以通过马来西亚公司委员会(SSM)进行,以符合2016年的公司法。

在着手申请工厂营业执照之前,确保你有一个适当的银行账户。根据MIDA的规定,申请工厂营业执照的资格包括一些政策,但不限于此:

  • 公司股东资金至少250万令吉,或聘用至少75名全职受薪员工;
  • 项目的每个雇员的资本投资(CIPE)至少为14万令吉;
  • 公司的全职员工总数中至少80%是马来西亚人。雇用外国工人,包括外包工人,须遵守现行政策;
  • 公司的全职员工中至少25%是拥有学位和/或文凭/证书的管理、技术和监督人员(MTS),产品的附加值至少为40%;

关于完整的要求清单,请浏览马来西亚投资发展局官方网站 www.mida.gov.my

随后,你还需要获得原产地证书,这是一份证明特定产品原产国的文件。获得该证书需要满足的标准包括:产品在马来西亚制造并使用100%的本地材料;或在马来西亚通过改变六位数关税编码分类的改造过程制造,或至少含有25%的本地材料。

因此,请与Hartamas工业地产服务团队联系以了解更多在马来西亚建立工厂业务的步骤和程序。

[图片来源: Photo by Pixabay]

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How To Set Up Your Factories’ Operation In Malaysia? https://hartamas.com/how-to-set-up-your-factories-operation-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-set-up-your-factories-operation-in-malaysia Mon, 03 Apr 2023 03:57:01 +0000 https://hartamas.com/?p=25168 华文 Malaysia has always been touted as one of the preferred manufacturing destinations for companies worldwide. According to the Malaysian Investment Development Authority (MIDA), Malaysia’s manufacturing sector continued to be resilient throughout the year despite the various headwinds in its way. For instance, of the RM98.7 billion worth of approved investments in the first quarter […]

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Malaysia has always been touted as one of the preferred manufacturing destinations for companies worldwide. According to the Malaysian Investment Development Authority (MIDA), Malaysia’s manufacturing sector continued to be resilient throughout the year despite the various headwinds in its way. For instance, of the RM98.7 billion worth of approved investments in the first quarter of 2021, the manufacturing sector accounted for RM59.4 billion, or a noteworthy 60.2% of the total. Foreign Direct Investment (FDI) inflows remained strong at 89.1% of total investments into the sector.

In fact, to accelerate the adoption of automation in 2021, the government has allocated RM100 million for the Smart Automation Grant (SAG) under the PENJANA stimulus package and RM50 million under the PEMERKASA aid package. The SAG encourages small- to medium-sized enterprises and mid-tier businesses to adopt automation and digitalisation in their production processes and operations.

So, how does a foreign investor set up a factory’s operation here? Firstly, you need to set up a Malaysian Incorporated Private Limited Company (or Sendirian Berhad – Sdn. Bhd. in Malay) of which the registration can be done via Suruhanjaya Syarikat Malaysia (SSM) in compliance with the Companies Act 2016.

Ensure that you have a proper bank account set up, before proceeding to apply for the manufacturing license. According to MIDA, the eligibility for a manufacturing license includes some policies but is not limited to:

  • Companies with shareholders’ funds of RM2.5 million and above or engaging 75 or more full-time paid employees;
  • Project’s Capital Investment Per Employee (CIPE) is at least RM140,000.00;
  • The total full-time workforce of the company comprises at least 80% Malaysians. Employment of foreign workers, including outsourced workers, is subject to current policies;
  • At least 25% of the company’s full time workforce are managerial, technical, and supervisory (MTS) staff with degree and/or diploma/certificate, and the product’s value added is at least 40%;

For the full list of requirements, please find out more in www.mida.gov.my.

Subsequently, you would also need to obtain your Certificate of Origin which is a document that certifies the country of origin of a particular product. Among the criteria to be met for obtaining this certificate are that the products be manufactured in Malaysia and use 100% local materials; or be manufactured in Malaysia through a transformation process that alters the six-digit tariff code classification, or contain at least 25% local materials.

As such, do engage with Hartamas Industrial Property on the steps and procedures to setting up your operations here in Malaysia.

[Image source: Photo by Pixabay]

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Pitfalls To Avoid When Buying Rental Property https://hartamas.com/pitfalls-to-avoid-when-buying-rental-property/?utm_source=rss&utm_medium=rss&utm_campaign=pitfalls-to-avoid-when-buying-rental-property Mon, 20 Mar 2023 02:31:16 +0000 https://hartamas.com/?p=25089 Investing in a rental property can be a great way to increase your income. With the current buyer’s market, it’s an ideal time to buy real estate for passive income. However, there are some pitfalls that you should be aware of when buying a rental property. For example, location is one of the most important […]

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Investing in a rental property can be a great way to increase your income. With the current buyer’s market, it’s an ideal time to buy real estate for passive income. However, there are some pitfalls that you should be aware of when buying a rental property.

For example, location is one of the most important factors when investing in real estate and can make or break your investment. It is also important to ensure that you are not overpaying for the property and that you have done your research on the area and its growth potential. Additionally, there are other common mistakes to avoid, such as not having adequate insurance coverage or neglecting to do proper due diligence before signing any contracts.

Avoiding these pitfalls will save you both time and money. The question is, how to spot them? In this article, we will explain some of the most common mistakes rental property investors could avoid.

1. Choose the wrong location

Commonly, fewer people are looking to buy or rent in an undesirable location, for example, poor accessibility or bad security. The demand for housing in those locations is usually lower, which can affect your rental property’s vacancy rates and return on investment.

2. Making an emotionally driven decision

Another mistake to avoid is making decisions based on emotion. When your emotions are running high or you buy a property based on a feeling, it is difficult to remain objective and make rational decisions. Always remember that buying a property for investment purposes is not the same as looking for a personal residence. It must have the potential to maximize your investment return, so set aside emotions and personal preferences and choose properties based on revenue-generating factors.

3. Make decisions purely based on data

While we should not make an emotionally driven decision, we, however, should not make a purchase decision solely based on the past transaction data too, as it will not tell the whole picture, despite it being undoubtedly an important indication of the vibrancy of the local market. A real estate investor must consider other factors, such as the initial expenses, value appreciation in the long term, and potential maintenance and repair costs, as these will affect the return on investment.

4. Not planning ahead

It is easy to get excited about real estate investing and believe that the best way to get started is to dive right in without any planning or research. However, it is also important to be aware that careful planning based on in-depth research at every level will go a long way towards preventing you from being on the receiving end of any unfavorable developments, such as buying the wrong property, losing money, or having your home loan rejected.

[Image source: Photo by Alexas Fotos]

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Buying Into Education Townships https://hartamas.com/buying-into-education-townships/?utm_source=rss&utm_medium=rss&utm_campaign=buying-into-education-townships Mon, 06 Mar 2023 06:01:03 +0000 https://hartamas.com/?p=25030 Benjamin Franklin once said that an investment in knowledge pays the best interest. Buying properties near education amenities has always had its up, tapping into the demands for rentals by students coming out of state. For instance, a favorite of college students – Wangsa Maju and Setapak in Kuala Lumpur, have always enjoyed good rental […]

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Benjamin Franklin once said that an investment in knowledge pays the best interest. Buying properties near education amenities has always had its up, tapping into the demands for rentals by students coming out of state. For instance, a favorite of college students – Wangsa Maju and Setapak in Kuala Lumpur, have always enjoyed good rental yields of 4% to 6%. This is no surprise, given their proximity to numerous education institutes like the Tunku Abdul Rahman University College, Institute of Childhood Education-Studies & Community Education, VTAR Institute, Malaysian Institute of Art and Dasein Academy of Art.

Another student-populated township is Bandar Sunway, housing universities such as INTI International University, Taylors University, Sunway University, The One Academy, Monash University and SEGI University.

Down south, Johor is poised to be the new education hub in Malaysia. According to the government-managed Invest Johor website, significant projects in this sector include EduCity, Bandar Seri Alam City of Knowledge and Pagoh University City, which house internationally renowned campuses from prestigious educational institutions.

However, when the Covid-19 outbreak in 2019/2020, in a departure from what used to be normal, students have had to switch to online classes. Physical activities have ground to a halt. Nonetheless, as the economy opens up and activities have started picking up, it is safe to say that demands have also made a come back.

Pros and cons of renting to students

Renting to students have its pros, being less fussy, they do not require the most modern appliances or nice decor compared with working adults or more matured tenants. This is an advantage for the owners as they get to save money on furniture, fittings and fixtures.

Not only that, a landlord would have a possibly easier time to look for tenants, as educational institutions will give property owners the additional advantage to advertise through student bodies or organisations instead of through paid advertising means or having to go through property agents to secure student tenants.

However, one should also note that a major challenge landlords face when renting to student tenants is late payment of rent. It is also not unusual to encounter problematic tenants who move out of the unit without any notification. There are also those who take it upon themselves to “refurbish” the unit without letting the landlord know.

Some steps to minimise the risk of renting to students would be to tailor their leasing terms to include clauses such as noise, maximum occupancy of the unit and damages or repairs that should be considered.

It is also recommended that the parents should be co-signees to the Tenancy Agreement so that someone other than the student is aware and responsible for prompt monthly repayments and damages.

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Why Do We Need A Land Use Zoning Law? https://hartamas.com/why-do-we-need-a-land-use-zoning-law/?utm_source=rss&utm_medium=rss&utm_campaign=why-do-we-need-a-land-use-zoning-law Mon, 21 Nov 2022 01:59:44 +0000 https://hartamas.com/?p=24367 In Malaysia, land use zoning helps one determines if the land can be used to develop a residential, commercial or industrial development. Under land use zoning, developers would have to follow a set of rules such as the plot ratio, the number of green areas needed, and the density of the development. Land use zoning […]

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In Malaysia, land use zoning helps one determines if the land can be used to develop a residential, commercial or industrial development. Under land use zoning, developers would have to follow a set of rules such as the plot ratio, the number of green areas needed, and the density of the development.

Land use zoning for each different state is regulated through the respective state’s development plans provided under Part III of Act 172 (covering Sections 7 to 17). The plan comprises a State Structure Plan (Rancangan Struktur Negeri) and a series of local plans (Rancangan Tempatan prepared) for each district, municipal and city council in the respective state.

A local plan is prepared by a team of multi-disciplinary professionals, usually led by town planners, which include other professionals and specialists in urban design, landscaping, heritage conservation, environmental management, engineering, transport, agriculture, land valuation and organizational management. These experts would come in to give their professional advice on what works best for the land.

After the plan is prepared, the public can give their feedback or objections via email or written feedback before it is tabled for final approval by the State Planning Committee.

Landowners who want to change the land use (for example, from industrial use to commercial use) would have to apply for planning permission to do so. The final decision will also be subject to approval from the State Planning Committee.

For property developers, in order for the approval to get the planning permission, amongst the information needed to be submitted under the development proposal report (LCP) include the layout plans, a description of the land including its physical environment, topography, landscape, geology, contours, drainage, water bodies and catchments and natural features thereon as well as particulars of land ownership and restrictions, if any.

Before purchasing any property, property buyers should ask the developer a few pertinent questions including the land planning permission and development order, which shows the approved layout plan, building design and infrastructure plans, as well as the prevailing gazetted local plan, which comes in either a hardcopy or softcopy from the local authority. The information is important to property buyers to understand what are they buying into and what to expect of the surrounding development in the future.

Meanwhile, zoning is also crucial to the overall township development as it provides opportunity to the local and national authorities to control the development type and timeline in a specific area.

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Seven Reasons To Invest In Industrial Real Estate https://hartamas.com/seven-reasons-to-invest-in-industrial-real-estate/?utm_source=rss&utm_medium=rss&utm_campaign=seven-reasons-to-invest-in-industrial-real-estate https://hartamas.com/seven-reasons-to-invest-in-industrial-real-estate/#respond Mon, 14 Nov 2022 01:30:02 +0000 https://hartamas.com/?p=24195 A great place to invest is in the industrial segment of the commercial real estate market because of its many alluring benefits. Industrial properties typically maintain a level of stability that other sectors don’t always have, even though all investments involve some risk. Let’s look at some of the causes for this. But first, let’s […]

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A great place to invest is in the industrial segment of the commercial real estate market because of its many alluring benefits.

Industrial properties typically maintain a level of stability that other sectors don’t always have, even though all investments involve some risk. Let’s look at some of the causes for this.

But first, let’s clarify what industrial real estate is.

What is Industrial Real Estate?

Any commercial property used especially for industrial purposes is referred to as industrial property. For instance:

  • Logistics
  • Showrooms
  • Warehousing
  • Manufacturing
  • Storage

Let’s now go through 7 justifications for investing in industrial real estate.

1. Greater Diversity

In commercial real estate, a property that fits into a certain category typically has to be used for that particular application. For instance, neither a multifamily building nor office space may be used as a storefront for a retail establishment.

However, industrial property has a wider range of potential applications, making it more flexible to change in response to shifting market demand. Industrial property has the versatility to be sold as either, for instance, if there is a low demand for warehouses in a region but a high need for storage facilities.

One industrial property can serve a variety of purposes, which attracts a wider range of firms. A sizable warehouse structure can be divided into many storage areas.

2. Long Term Income Opportunities

For a variety of reasons, including the assurance of consistent, long-term revenue, an occupied property is advantageous to the investor.

Industrial leases tend to be on the longer side due to the sheer size and volume of transferring an industrial firm from one location to another, and tenants are much more willing to renew their lease when the chance arises rather than packing up and moving.

3. High Demand

Industrial properties tend to sit unoccupied for far less time on average than other types of commercial real estate, mostly because of the versatility described earlier.

Because every product we use has in some way passed through an industrial property, there is still a great need for these kinds of properties. In other words, these qualities are required.

This also doesn’t appear to be changing anytime soon as e-commerce thrives and the demand for larger-scale fulfilment centres increases.

4. Greater Tenant Responsibility

A benefit of having more responsible tenants is that the investor will need to perform less upkeep.

As was already said, industrial renters frequently intend to stay in their current location for a longer period of time. As the property serves as a reflection of their company, it also means that they have a greater financial stake in it.

5. Less Maintenance

There are costs associated with owning a commercial property. Throughout your ownership, there will be updates, repairs, and renovations that are required. These can quickly add up in expense and time.

But compared to other industries, industrial real estate requires far less upkeep. The majority of industrial properties are large, open spaces with poured concrete floors and high, exposed ceilings, which reduces or eliminates the need for things like carpeting, soundproofing, high-end fittings, and other extra costs.

6. Less Market Saturation Risk

Due to many of the previously mentioned factors, it is much less likely that industrial property will experience an oversupply problem—an excess of available assets relative to the market demand.

Industrial space will always be needed as long as people continue to buy things (of each and every kind), making it a far safer investment choice.

7. Easier to Liquidate

Last but not least, you’re considerably less likely to find yourself in a situation where you can’t sell due to the continually high demand for this form of commercial property.

Industrial properties are considerably easier to immediately access cash than other types of real estate investment because they typically stay on the market for brief periods of time.

 

[Source: https://newsdailyarticles.com/new/everything-you-need-to-know-about-industrial-lots]

 

 
 
[Image source: Photo by CHUTTERSNAP]
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