Scott O'Neill

But the good thing with commercial is you're dealing with much higher returns.

So that million dollar property might give you a 60, 65,000 net return.

This is after outgoing.

So the tenant pays all your outgoings.

And that is the biggest difference from a commercial lease to residential.

Because the tenant for a residential house won't pay anything.

You know, you literally, they're paying a gross lease.

In commercial, a net lease means the tenant pays building insurance.

If there's strata, the tenant will pay the strata.

If there's land tax, the tenant will pay your land tax.

If there is maintenance, the tenant will pay your maintenance.

So you can see there's all these costs that unfortunately will creep up to you with many different types of residential properties.

But commercially, it can be kept in check due to the lease.

And that means that, let's say we're getting 65 grand income.

So that's a 6.5 net return.

That's great.

quite typical of what we're seeing across the board.

Now yields are getting lower.

So even if you look at a 6% net return, that's after all those costs.

So they're very good numbers.