Scott O'Neill

Yeah so to answer your question most lenders require 30% down now you can actually get up to 80% loans in commercial so but one of the big differences with commercial versus residential is you can't get those 95% loans or 90% loans like you can with residential so there is a little bit more cash you've got to put down to get the deal done

So the million dollar property, you'll need 300 grand.

Now there's costs as, you know, same with residential.

You've still got the same ratio as a, you know, for the stamp duty.

So on a million dollars, you're talking probably around 40, 45 grand in terms of the deposit for your, um,

Stamp duty as well.

So you're up to, and then you've got your, all your legal fees and building and pest costs.

So that all might add up to a total, including your 30% deposit of 350.

So you'll need 350 grand cash to, to purchase a property.

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.