Multi-millionaire property mogul reveals 'best-kept secret': 'Double or even triple in value'
When it comes to commercial property investment, I’ve seen countless myths and misconceptions hold people back from exploring what I believe is one of the best-kept secrets in the investment world.
The more familiar property investment path of residential ownership will generally offer a gross yield of 3-5 per cent, which can drop to just 1-3 per cent net after expenses. In contrast, commercial properties typically deliver net yields of 5-8 per cent, which means more income in your pocket and greater passive income potential.
As CEO of Rethink Group, I’ve dedicated my career to helping investors uncover the true potential of commercial properties.
I break down some of the most common myths and share why, with the right approach, commercial real estate can be a powerful addition to any investment portfolio.
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🙅🏼♂️Commercial properties are only for 'experienced investors'
One of the biggest myths I encounter is the belief that commercial real estate is reserved for seasoned professionals.
I understand why people might feel intimidated, but the truth is, with some fundamental knowledge, research, and due diligence, even first-time investors can enter this space confidently.
Reality: A few steps to start include understanding lease structures, property types (e.g. office, retail, industrial), and familiarising yourself with market demand.
Gaining a solid understanding of these basics can help reduce risks and open up new opportunities.
🙅🏼♂️You need a large amount of capital to invest in commercial
Reality: While it’s true that some commercial properties have high price tags, there are opportunities available for a wide range of budgets.
I often tell clients that a starting deposit of around $250,000 can open doors to great commercial assets.
Explore creative financing options such as syndicates, partnerships, or even starting with smaller commercial assets, like office suites or storage facilities, that typically have lower entry points.
Setting a clear budget and seeking financing options that align with your investment goals can help make commercial real estate accessible.
🙅🏼♂️ Commercial properties are riskier than residential investments
Reality: All investments carry some risk, but I’ve found that commercial properties can offer more stability and predictable returns than many people expect.
