Scott O'Neill

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.

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.