Scott O'Neill

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.

The different leases on properties will add value.

For example, a lease for a medical tenant will be worth more than a no-name lease.

I guess a food-related type business or a fashion shop.

So different types of tenants hold more value.

It's due to the strength of the lease and how predictable the rental income is.

Like a dentist, for instance, highly valued.

If you've got a dentist tenant, they've probably spent a lot of money on a fit-out.

They might have a 10-year lease.

That tenant is not going anywhere, especially because they're not really going to get damaged by the economy ups and downs as other, I guess, discretionary spend-based tenants would be.

So I guess you sometimes got to simplify it and just think, how hard would it be to re-let this property if it's in a great location with a great tenant already in there and it's a prominent position?

Then