Scott O'Neill

That's one of the common ones.

So starting with the minimum amount you need for a good commercial property is

I generally say around 200, maybe even 250 grand cash or equity.

And look, you can buy properties with a lot less, but remember you put a 30% debt deposit down on a property.

So once you factor in 30% deposit plus stamp duty and solicitor costs, building and pest costs, and just general purchasing costs, you're probably looking around a $600,000 purchase.

That is generally a capital city property.

You'll be able to get into the warehousing market, small shop front type stuff.

But I generally find warehouse purchases are the best bang for buck in that price point.

You are dealing with potentially a logistics or a storage related tenant, which is quite good in the post-COVID or current COVID world, whatever you want to call it.

In terms of if you're lucky enough to have a larger budget, you might decide, oh, what should I buy?

If you've got, hypothetically speaking, millions of dollars to spend, sometimes it's worth spreading it around a few different properties or purchasing one.

But I'll give you a real overall viewpoint of the market.

So generally purchasing under a million dollars for a commercial property, there's a lot of competition.

There's a lot of buyers in that price point.

So it's quite competitive.

You might find the yields are a bit tighter because of that extra competition.

From $1 to $2 million, in this market, it's quite similar, but you're starting to deal with larger type tenancies, maybe multiple income assets, freehold versus strata.

So there's obviously benefits to spending more money.

Once you get over $2 million, almost that $2 to $10 million range, I call that almost the quiet zone of the property market.

There's less competition.