Scott O'Neill

Then you've just got to look at how much mortgage you're going to be paying.

You're probably only going to be paying about a 20, 25 grand mortgage on those costs as well.

So

You're left with $35,000, $40,000 of passive income.

So, you know, that's all $700, $800 a week in your pocket clear after mortgage, after outgoings from a million-dollar purchase.

Now, you compare that to residential.

If you spent a million dollars on a two-bedroom unit in Sydney and then you've got to pay

thousands of dollars each quarter for strata and then you've got all your you know rental management you've got all your other maintenance costs and whatnot that come with it you're normally negatively geared so the fact you're going to be up nearly 800 a week clear that's the number one reason people jump over to commercial because mathematically it makes a lot of sense and it's a way of building an income a true income one that you can actually retire on if you if you buy enough of this stuff

which is very hard to do in the residential markets now.

You're there only for growth in residential.

And if the rent ticks up over the decades, then that's what you're there for.

But it's a lot more instant.

But yes, it's more capital intensive.

So that's the great barrier to entry we find with commercial.

Yeah, exactly right.

And it's a good thing to think, all right, I could buy a break-even property in residential if I'm lucky or buy something that'll give me 800 a week clear.

And that makes a huge difference.

That's a 40 grand pay rise per annum that you can literally create through dropping 350K cash on a deal.

it doesn't really end there as well because you're going to get capital growth on top of these numbers like there's there's a lot of capital growth for the right assets and you know it's one of those big myths out there that commercial property doesn't grow in value or it gets less like if you know all you got to do is look in whatever suburb you live in and look at the value of whatever commercial property you find and it's probably a quite a high value in most cases and

Commercial property values are attached to their yield, their income, the cost of building, how hard it is to replace that type of property.