Scott O'Neill

There's risks in it.

There's obviously some massive opportunities as well.

So we can deep dive into all of those.

Yeah.

So this is a big thing at the moment because there's obviously talk about high inflation, which leads down to, I guess, an eventual RBA rise in interest rates.

And reading the latest headlines, they're talking about an August increase sometime in August for the RBA to raise their interest rates.

So

Naturally, you think as an investor, what's going to happen to commercial property or residential as well in that matter?

And my opinion is I actually think it could be a relatively good thing for the market because when you get high inflation, which is a precursor.

to interest rate rises, you're actually getting rental increases.

And commercial property, a lot of the leases are attached to CPI incremental annual increases.

So we're going to actually see a period of strong rental growth.

And I saw some, there was a Finn review article out last week calling industrial property in Brisbane, I think it was related to, it was going to go 50% rental increases over the next five years.

So these are massive figures and it's off the back of bill costs have gone up so much as well.

And like a small increase in interest rates, they're not going to be offset enough by the increase in rents you're going to achieve as well.

But what it will do, I think, is slow some of the rates of growth.

Like obviously, if interest rates are going to get multiple increases in the interest rate, then obviously,

People can't keep paying more and more for the same rent value.

And that's what's been happening the last few years.

Like we've seen yields drop to lower and lower levels because investors are seeing so much value in commercial.