In episode 11 of the Property Investing Journey, Mike is joined by Steve Palise, Property Investor and Author of “Commercial Property Investing Explained Simply”. Mike builds on earlier episodes in the series and explores with Steve the benefits and risks of commercial investing as an alternative to residential property.
As an experienced buyer’s agent, Steve has worked with thousands of clients to source and purchase quality commercial property investments across the country. Far from being the domain of only the big end of town, Steve believes that commercial property investing is well and truly attainable for the average punter, and in fact provides a more immediate path to strong cashflow.
Taking into account higher yields as a means to compensate for potentially longer vacancy periods, Steve explains how commercial property compares well with residential. Using clear language and straightforward logic, Steve and Mike talk through the risks of investing in this lesser known sector, and how to mitigate them.
With the economic impacts of COVID-19 still to be seen, from the rise in online shopping and the increasing need for industrial warehousing, to the evolving changes in behaviour in the workspace, the benefits of commercial property are definitely worth considering for any investor serious about building passive income.
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Mike is joined by Steve Palise, Property Investor and Author of “Commercial Property Investing Explained Simply”. As an experienced buyer’s agent, Steve has worked with thousands of clients to source and purchase quality commercial property investments across the country. Far from being the domain of only the big end of town, Steve believes that commercial property investing is well and truly attainable for the average punter, and in fact provides a more immediate path to strong cashflow.
What we cover in this episode
- Commercial property as an alternative to residential property investment
- Understanding the risk of commercial property
- Yield vs growth
- When to use a buyer’s agent
- The benefits of essential retail space
- The impact of COVID and how changes in behaviour affect property
- The question of diversification
“You need a lot of residential properties to have a large passive income and it needs to be done over a long timeframe…Commercial just gives you that instant cashflow injected into the portfolio. They’ve both got pros and cons.“ Steve 1:39
“No-one cares about your wealth as much as you do. Educate yourself as much as possible. If you don’t have the time or you don’t have the skillset, 100% use a buyer’s agent. “ Steve 6:35
“For me, passive income lets you live now whereas building net capital wealth in a residential property, that’s for future wealth. That will give you a lot more options down the track because you can sell, you can refinance, you can do those types of things, but if you’re looking for…a shorter term gratification where you feel wealthy, commercial is a way to go.“ Steve 8:38
“The best commercials for me are the most boring ones, the ones that just tick all the fundamental boxes“ Steve 10:42
“When you’re buying a commercial property with a tenant, you look at the tenant and you firstly say, will they be there long term, and then you also risk mitigate by saying, if they’re not there long term, how versatile is this space?“ Steve 16:12
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