[Podcast] Commercial Property Investment: A Wise Choice or a Gamble? With Brett Warren

Have you thought about investing in commercial property?

You’re not alone — faced with the prospect of more moderate returns from their residential property investments, many investors consider this an alternative.

By this I mean offices, shops, or warehouses.

Some investors are looking for diversification in their investment portfolios; others are looking for positive cash flow.

Some investors have noticed that most institutional property investors and many of the investors you read about in the Financial Review Rich 200 List own mainly commercial properties.

Is commercial real estate the right move for your investment Portfolio?

Today, I sit down with Brett Warren, the National Director of Property at Metropole, to chat about the intricacies of commercial property investment.

We discuss the benefits and drawbacks of investing in offices, shops, and warehouses, and compare these with residential property investments.

Our conversation is designed to help you understand the complex world of commercial real estate and determine whether it's the right path for you.

• The current interest in commercial property investment, particularly in offices, shops, and warehouses
• Comparison of commercial and residential property investment
  • The differences in yields, diversification, and tax benefits
• The complexities and risks associated with commercial properties
  • Weaker capital growth
  • Longer vacancy rates
• Financing commercial properties versus residential properties
  • Higher interest rates
  • Different borrowing restrictions
• The impact of economic cycles on commercial real estate and the intricacies of commercial leases
• The necessity of professional advice for commercial property investment
  • Residential real estate might be safer for new investors
• The higher entry costs and scarcity of accessible information in commercial property investment
• Valuation methods for commercial and residential properties

By the end of this episode, you’ll have a clearer understanding of the complexities involved and whether commercial real estate is the right fit for your investment journey.

Links and Resources:

Subscribe to the new Demographics Decoded Podcast with Simon Kuestenmacher :

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• Spotify: https://open.spotify.com/show/6qsThQ6mIXK8RKWlhst1xK
• YouTube:  https://www.youtube.com/playlist?list=PLssKuseYAEYwHYfEI262DzEqNQjZKhykA

Michael Yardney

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Brett Warren - National Director Metropole

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Some of our favourite quotes from the show:

“Lenders usually only lend up to 70% of the value of your commercial or industrial property, which means investors need to come up with more equity for a commercial property.” – Michael Yardney

“But commercial properties work on a very different cycle to residential properties. It has a lot more to do with the economy, the general economic factors, with people spending.” – Michael Yardney

“Financial well-being can't be measured merely by looking at how much you earn. The gap between what you earn and how much you avoid offsetting those earnings is the figure that matters the most.” –Michael Yardney

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