Scott O'Neill

If you're buying in a blue chip market where there's a lot of rent growth, yield compression, you're going to be making double digit returns without lifting

a shovel.

It's just something I've witnessed a lot over the years where people will come, generally inexperienced investors who try to buy a vacant property and trying to fill it.

They're just getting too adventurous for themselves.

And sometimes that just can cost more money.

The vacancies might be longer than they think.

Why is it vacant in the first place?

These are the questions you've got to ask rather than just looking at a value-add place.

So

If you're an experienced commercial investor and you're repositioning an asset, that's a different ballgame.

But when you're just trying to get into the market, just consider buying a good quality asset with a tenant already in place and just pay the right price for it and you should do well.

And the other one is trying to buy locally.

This is like your old school way of investing.

It's quite relevant to residential as well.

Some people think it's just good to buy a property they can drive past every day.

I've never understood that logic because I've spent a career buying properties in all parts of the country.

And I chase property cycles where it's good value.

And that has made me a lot of money through capital growth and buying better and getting better yields than just trying to buy something down the street just because I can sit out front in a car looking at it.

It's a comfortability thing.

That's the logic behind it.