Scott O'Neill

The only people I'm really purchasing properties from are divorce sales, fund managers who are selling down assets to get into bigger ones, or unfortunately, some death scenarios where they're just selling off estate.

So it's a very low stock market.

But residential people are getting forced to sell due to the higher rates.

So supply is the big difference.

And that's the reason why you're going to see greater falls.

And

People have got higher debt levels as well.

I imagine you bought a 95% loaned unit in Sydney and you're negatively geared 20 grand a year back when it was, you know, a 2.5% interest rate.

You know, that's going to be quite a stressful situation and people will sell in those situations.

Yeah look I've seen this firsthand so like I'm in the business of helping people acquiring commercial property and we're literally seeing about the volume it's about 40% more than it was this time last year in terms of what we're purchasing for our clients that's just in dollar amount.

And we're really just seeing an explosion of, I guess, extra interest in this department.

And one of the main reasons I think is the interest rate talk.

As interest rates, you know, the threat of the interest rate rises increase, people start looking at their residential portfolios, which may already be negatively geared or at best evenly geared, and think, what would an interest rate rise do to my portfolio?

And it's going to make it harder to hold.

So you immediately think, where can I get better cash flow?

Because that will support a higher interest rate environment.

And that's where commercial is quite literally, you know, a fast track solution to that.

You're going to be dealing with much higher incomes on the assets.

And, you know, an interest rate rise really won't scare you when you're sort of hearing the numbers we're talking.

Yeah.