Should you buy a commercial property right now? 🤔 

 

There’s a lot of buzz right now about the benefits of commercial property, higher cashflow, long tenancies etc etc.. 

 

BUT it's not all what it appears to be ⚠️ 

 

In this episode I’ll go through FIVE pros and cons and tell you things no "expert" will tell you❗ 

 

1) Commercial is valued on yields which are determined by interest rates spread and rental income. The former is rising pushing down values 

 

2) Rents are rising but a 5% rent rise does not offset at 3% rise in interest payments 

 

3) Small business are going to struggle more meaning leases are not worth the paper they are written on 

 

4) Longer vacancies aren’t just a threat and personal bank guarantees won't get you out of trouble 

 

5) People are getting carried away in commercial property but post the GFC it was hard to sell a commercial property even at a 50% discount. 

 

Tune in till the end because the conclusion may not be what you expect!

 

 

Discussion Points:

00:00: Introduction

1:28: Determining commercial value

5:38: Rising rents in commercial property

8:13: Small businesses will struggle

10:47: Longer vacancies  

15:05: Getting carried away 

19:34: Conclusion

About The Host:

Subscribe to Aus Property Mastery with PK for no BS, “straight to the point” property investing strategies and data-driven insights about the Australian housing market - the only property podcast not biased by a “Buyers Agent”. You can listen to Aus Property Mastery on Apple Podcasts, Spotify & YouTube Music. 

PK Gupta is the founder of the Property Investment Accelerator — Australia's #1 Rated And ONLY 100% Independent Real Estate Course & Mentorship Program that helps people achieve passive income through property investing using DATA, WITHOUT wasting months doing "research", spending weekends at inspections OR dropping $10-20k on Buyers Agents each time. 

 

Resources:         

• Watch FREE Trainings On Our Website  👉 https://consultingbypk.com.au/        
• Get Suburb Tips & FREE STRATEGIES In Our Private Facebook Community With Over 50,000 Clients & Investors  👉  https://www.facebook.com/groups/passiveincomethroughproperty
• Watch No Nonsense Property Market Insights On Our YouTube Channel  👉https://www.youtube.com/c/AustralianPropertyMasterywithPKGupta

 

 

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