Scott O'Neill

sub four percent type purchase prices like say if you're getting 40 grand of rent that'll be a million dollar price tag those lower yielding assets all of a sudden less attractive as you could imagine lending costs have gone up so you need a greater yield to justify the purchase that's the same thing that's happening in residential however we've basically seen

money flow because i can see it on the cold face through my business we've had demand exactly the same almost like to a single digit lead comparably to sort of six months ago coming through the door so more people are kind of coming from residential and selling off residential to then purchase commercial to get that high yield because they need it they're forced to because it's

the only way to generate an income that's useful with rates being higher.

So that's made demand for high yielding stock a lot more attractive.

So we've seen regional areas get a boost right now.

So they're not declining at all.

They're actually growing quite quickly.

So while Sydney might be declining, high yielding regional areas are getting more demand and also just high yielding capital cities like Perth, Brisbane and

to a lesser degree, Adelaide, are all holding up very well.

So prices are stable and growing in these locations, but falling in locations like Melbourne and Sydney.

But it's definitely nothing like what we're seeing in the residential markets because you're seeing quite sharp falls in those.

So comparably, commercial is holding up very well.

Yeah, it's a good question.

It's one I get quite often.

And basically what I'll tell a client, if they're in a position to buy positively geared property, factor in the interest rates, even put an extra percent on your numbers if you want to be safe.

you're still getting a positive cash flow in that scenario.

And the rents are growing rapidly at the moment.

So if you wait six months, number one, you're going to be up against more competition because there's a fair few people on the sidelines with truckloads of cash waiting to buy into the commercial market.

So if you wait for that kind of perfect moment, which I've never seen a perfect moment to invest, there's always something going on that's going to scare you.

Right now, it's the rates.