Scott O'Neill
speaker
1,140 appearances
15 recordings
2 series
first heard Jan 2022
last heard 12 May
Scott O'Neill’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in May 2026 with 1.
Appearances
Are we seeing it in commercial property?
It's definitely not the case at this moment.
The main reason is stock is so tight and the investors now more than ever are chasing higher incomes on their investments.
So I sound like a broken record sometimes, but cashflow is a major driver for people to come to commercial property.
So when there's a threat of an interest rate rise, they will naturally slow down in residential because they're already in a negatively geared situation in most cases, or they've taken a very large loan on a home.
So they don't want to pay more because it's fearful to
you're taking a debt on and you're significantly cashflow positive, it doesn't have that same fear factor.
So we are seeing that the same number of people, if anything, slightly more are fighting over the few scraps of properties that are available in the commercial space.
So we've got too many buyers looking for the same amount of stock.
So I
hope it softens as a commercial buyer we want to keep getting good deals and that means we want large volumes to look over but it's just not the case at this stage it may change later towards the year but the cold face and i'm on that cold face every hour of the day is demand is increasing right now
Yeah, so one of the great benefits of commercial property is you get a very good tax benefit from it.
So you can claim the depreciation as you can with residential, but you'll get to claim it on the full amount of plant and equipment, not just one or the other, which is residential.
You can only claim on the building itself now unless it's brand new.
So you're getting the full tax benefit in commercial, which is obviously very handy when a lot of these buildings are worth a lot of money.
That means you've got a lot of depreciation in that building you can claim.
the world there's there is limited depreciation in most countries on offer for commercial investors like for example USA limited depreciation China limited depreciation South Africa no depreciation so Australia is the lucky country when it comes to depreciation and
Commercial being a high value capital asset depreciating on paper is exactly what we like for our tax return.
So it is a case of, yeah, we're looking forward to tax time, even though we are positively geared paying income on our income tax as well.
Yeah.
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