July 13, 2025 • 17 mins
- With the cash rate decision through the week, Bushy Martin from KnowHow Property Finance explains why the RBA has missed an opportunity
- Simon McGuire, Director at Sentia Real Estate looks at Investing in commercial property in Canberra
- Ashlee Berry, Property Council ACT & Capital Region Executive Director speaks about co-living in Australia, and whether it’s an option worth considering
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Cameron Renee's real estate show on Mix one oh six
point three be the Envy of Camera Live in de Burgert,
Northbourne Village by JW Land now selling Well.
Speaker 2 (00:10):
Renee Hello once again and it was a big week
with the RBA handing down the announcement that not everyone,
in fact, no one wanted to hear no.
Speaker 1 (00:20):
And I feel like with this one more than others,
people were particularly surprised and disappointed, I think because there
was so much talk even on our show, with people
expecting it to go down again.
Speaker 2 (00:32):
There was plenty of talk by one Bushy Martin from
Know How Property Finance. He certainly had plenty to say
yes and we love it when Bushy comes on and
we certainly did as well on Saturday, didn't we?
Speaker 3 (00:43):
We sure did, so we loved speaking to him.
Speaker 1 (00:45):
We also spoke to Simon maguire about investing in commercial
property in Canberra.
Speaker 2 (00:49):
The landscape has changed so much, the way that we shop,
the way that we go to the shops, the way
that we work all in and around commercial property and
so very very interesting to hear Simon's take on the
landscape at the moment.
Speaker 1 (01:02):
Absolutely and another topic we covered camp co living in
Australia and people might hear this and think of a
number of different things about what it means.
Speaker 3 (01:10):
Yeah, couldn't they?
Speaker 2 (01:10):
Absolutely, And we know the Property Council of the Act
and Capital Region Executive director Ashley Berry, she joined us.
The Property Council has had quite a bit to say
about this over the last twelve months or so, and
again it was interesting to hear her take on it.
Speaker 3 (01:25):
It sure was and Ashley's awesome.
Speaker 2 (01:26):
We love yes, absolutely all right, that's what we have
lined up for you in our podcast today. Thank you
so much for joining. Thanks to JW Land as well
for helping us out. It's Mixed one O six point three,
our real estate show podcast.
Speaker 1 (01:39):
We had some news throughout the week, not the news
we wanted, not the news anyone wanted to hear.
Speaker 3 (01:44):
Not the news most people were expecting.
Speaker 4 (01:46):
Yep.
Speaker 3 (01:47):
And you know when it came through, I remember my
partner was.
Speaker 1 (01:51):
Looking it up and checking on his phone, like what
stories to come through about it, and he sort of said, oh,
it hasn't happened, and I was like, sorry, what.
Speaker 3 (01:59):
Yep, sorry what?
Speaker 2 (02:01):
So, of course we're talking about the RBA and their
decision on the cash rate on Tuesday, and were you
saying before that you even had a little reminder on
your phone.
Speaker 1 (02:11):
I had a reminder set in my phone to contact
the bank because you know, like when interest rates do
get dropped, you if you want it to take effects
sooner rather than later, you have to chase it, right,
So they're not going to be in a rush to
do it.
Speaker 3 (02:24):
So I had to remind it in.
Speaker 1 (02:25):
My phone contact the bank on this day, and so
I've had to delete that.
Speaker 2 (02:29):
So in getting our next guest organized, we had some
email banter, let's just say, a colorful banter showing backwards
and forwards. Bushy Martin from Know How Property Finance joins
us right now, Good morning.
Speaker 1 (02:41):
Bushy, he cam hi, good good, good Now, look this
announcement through the week, right at the base level, why
did the RBA hold off on cutting the rate again?
Speaker 5 (02:53):
Yeah, I'd with you guys. The rate decision was a
bit like being six points up with thirty seconds left
on the clock, thinking we've actually got the game in
the bay, only to see the Empire call for a
video review. We all for the eight Cup was a
sure thing, but they've hit pause and said, well, let's
check the replay first. But I guess we need to
think of the RBA a bit like the pilot trying
(03:14):
to find a jumbo jet in the dark. They're steering
out two trillion dollar economy only using the rearview mirror
because the data they're relying on to make rate decisions
are generally one to three months old. So taking inflationary example,
is now the two means back about two point four percent,
which is bang in there two to three percent targer band.
But understandably they want one more clear reading before they
(03:36):
the clear victory. Why because services inflation is still clinging
on like toddler glue wags. Growth is running just above
four percent, adding those global givers with the Trump tariffs
creating some uncertainty, a strike in the Middle East, and
some patchy spending here at home, and they've decided less
weight one more set of numbers before we cut again.
So they just don't want to jump the gun and
(03:58):
overheat the landing. And you know the round is we've
actually seen inflation before, only to bounce back like a
kangaroo on a trampoline. So the RBA's problem is that
I've only got that one tool, the big blunt delayed
action rates hammer, to make things happen, So they're sort
of tapping the brakes and checking the mirrors hoping that
they don't skip the economy off the Manaro Highway.
Speaker 2 (04:19):
Careful, So thank you for all the localisms, beautiful. What
do you think this will do to housing markets? First
of all, let's have a look at the nation's capital
and then maybe nationally, what's going to happen here?
Speaker 5 (04:30):
Yeah, well, as we all know, Camp is a really
special case and it's a bit unique. So you know,
we've got the solid public service, incomes, low on employment,
and let's face it, not enough homes on the market
and rental vacancy is still around two percent, which is
tired of than trying to find a car park. Of
the warmer morale on the Hansac day. But core Logic
is saying that ACT prices are already inching up zero
(04:52):
point eight percent last quarter, and that was before was
even a rate cut, and by pausing the rates, they're
actually letting the market similar rather than sizzle. So property
pundits are expecting two to three percent grow through spring,
and the ACT, which is steady and not a runaway nationally,
days have still climbed one point four percent over the quarter,
so even before the rate decision, with Brisbane and Adelaide
(05:14):
really leading the pack. So the rate pause isn't killing momentum.
It's just calming the jets so that the fomo frenzy
we're starting to see is relaxing little so Bushi.
Speaker 2 (05:24):
The numbers are the numbers, But do you think again
they've misjudged the pain that the community continues to feel.
I know off the back of a conversation with someone
here at the radio station. Through the week, it's almost
for us here in Canberra especially, it's a double whemming.
We've just had a pretty harsh budget handed down a
couple of weeks ago, and then they smash us with
this announcement on Tuesday. Do you think that they have
misjudged the pain?
Speaker 5 (05:46):
Absolutely, When you're relying on historic data, you're not really
in touch with reality. So, you know, families, for most families,
just ray pause has been a kick in the gaps.
We've seen repayments on a six hundred thousand dollars loan
on average of nine hundred dollars a month higher than
they were pre high days. And let's slay so that's
(06:08):
an entire weekly growth you run at fish Wish Market,
so you know, hard working ausi Is are really feeling squeeze.
They're cutting back on dinners out, holidays are off the agenda,
they're working extra hours. But unlike many politicians, the RBA's
role is to be Santa Cus or everyone's best mate.
Their job is sadly and I wouldn't want their job
(06:28):
to keep inflation waves, growth and unemployment came for long
term so that we don't end up paying twelve bucks
for a local bread next year.
Speaker 4 (06:35):
So, as I.
Speaker 5 (06:35):
Always say, guys, it's better to be roughly right than
precisely wrong, especially when our while it's on the line.
Speaker 3 (06:41):
Yeah, holiday, what's a holiday? You mentioned? Holidays? I don't
know what that means. Oh, goodness to me.
Speaker 1 (06:49):
All right, Well, Bushy, it's been great to chat to you.
Hopefully next time we do talk then there might have
been some positive news in between them.
Speaker 3 (06:56):
But we just have to wait and see. We'll have
to wait and see, thank you.
Speaker 5 (07:00):
Yes, I'm just jumping in there. I'm pretty confident that
the next RBA meeting there will be a rapecat and
that the economns are still predicting at least two cut
by Christmas. So they just delayed the inevitable.
Speaker 1 (07:13):
I think you Yeah, okay, gotcha. All right, well, thank
you so much. As always, Bushy Martin from know how
Property finance. They can well cam the commercial property landscape
per scene. You know, many changes in recent years, changes
in shopping habits, you know, work from home set ups,
all that sort of stuff. Skyrocketing maintenance costs, all these
things have contributed to these changes. And so with all
(07:35):
that in mind, we thought we might have a look
at how investing in commercial property has changed. And so
Simon Maguay is director at Centier real Estate and joins
us this morning. Hi Simon, this morning. Yeah, good thank you,
thanks so much for joining us. Now, look, when we
say commercial real estate broadly speaking, what are the sort
of properties that we're talking about.
Speaker 4 (07:57):
Just think about any type of business. It could be office, hospitality, retail,
trades and services, logistics, and more frequently it related businesses
like data centers, renate.
Speaker 2 (08:08):
Okay, okay, all right, So what are the main differences
between residential investment and commercial investment for anyone looking to
have a look at that as an investment option.
Speaker 4 (08:18):
Yeah, good morning. Can look, many aspects are the same.
You have a tenant, you've got depreciation on the asset.
You usually have a property manager on the asset looking
after it on your behalf. But the big difference is
the rate of return and the length of police So
in resi property you know you net two point five
to three point five percent and just for the listeners
out there, and that is the amounts you receive after
(08:41):
all the costs, after all your spends. And commercial property
in Canberra net somewhere between six to seven percent, so
it's effectively double the return on your investment as far
as the as the rent goes.
Speaker 2 (08:55):
Okay, And so is there difference in There must be
difference in risks though surely yes.
Speaker 4 (09:01):
There is cam and that's why we tell investors before
they step into the commercial property market if they are
a new investor, to do their due diligence, educate themselves.
Look agents in the commercial fielder are usually very very
helpful and always happy to sit down with somebody and
help them on the journey. So we recommend that they
find an agent by field they can trust and sit
(09:22):
down and have a good chat with them, find out
what the pitfalls and commercial properties are. Because all investments
have some risk, of course.
Speaker 3 (09:30):
Yeah, of course.
Speaker 1 (09:30):
And is it easy simon to buy commercial properties in
the Act.
Speaker 4 (09:35):
It's pretty easy Renee.
Speaker 6 (09:36):
Yeah.
Speaker 4 (09:37):
The big difference is the way you need to fund
a commercial property. So we find commercial properties are suitable
for established investors. It may not suit a first time investor,
but somebody who's got a portfolio already of either shares
or assets like REZI property or good equity in their
own home, they're ideal to invest in commercial real estate.
(10:00):
So we think, yeah, it is pretty easy to get
in and in the Act people are incentivized as well,
so there's no stamp duty on commercial property up to
about two million dollars, and the majority of investors in
the Act that range is probably what they're looking at.
Somewhere between five hundred and two million dollars is the
range not purchasing anyway?
Speaker 3 (10:19):
Yeah, okay.
Speaker 1 (10:20):
And so based on all of that, can you recommend
a few types to look at?
Speaker 4 (10:25):
I'd recommend a few areas for sure. So Camera is
lacking good industrial estates. We've only really got three main centers,
which is Mitchell, Fishwick and Hume. We are probably short
of industrial areas at the moment. So industrial has been
an evergreen for many years, so any industrial property is
(10:45):
probably good to look at. Prime example is there's some
great properties in hum at the moment on Shepard Street,
Hills Station, Business Park pops to mind. You know, you
can buy property in there from around seven hundred to
nine hundred and fifty thousand and that sort of six
low six percent return on it. They'd be an excellent
thing for our first time invested to look at.
Speaker 3 (11:07):
What sort of property is that.
Speaker 4 (11:09):
That's an industrial warehouse CAM designed for large vehicle access,
high roller door access. They have mezzanines built in. Those
ones are specked up a little bit more than most.
They've double blaze. They've got still staircases in them, which
is unusual in that range of product, and many of
them have actually got yards, which is also unusual in
(11:32):
that type of product. So they're fairly popular. There's only
a handful left there actually.
Speaker 1 (11:37):
Yeah, okay, all right, well, it's been really interesting to
talk upen that with you. I feel like we could
speak longer about this.
Speaker 3 (11:42):
We'll have to leave it there. Simon, thank you so
much for sharing that with us this morning.
Speaker 4 (11:46):
Thanks Na, Thanks Cam.
Speaker 3 (11:47):
I have had a great day you too.
Speaker 1 (11:49):
Simon Maguire, Director at Sentier Real Estate. Well can when
you hit a term co living, a bunch of things
come to mind, right, And I'm sure it varies, you know,
between different people, different sort of living arrangements come to mind.
We're talking about a particular type that seems to be
popular overseas, and we want to know if it's becoming
(12:10):
a thing here or if it's going to become a
thing here. And Ashley Berry is Property Council Act and
Capital Region Executive Director.
Speaker 3 (12:16):
Ashley. Good morning, Ashley, good morning. How are you going?
Speaker 5 (12:21):
My bad?
Speaker 2 (12:22):
That's my bad. You know what I'm doing?
Speaker 3 (12:23):
What are you doing?
Speaker 2 (12:24):
We've got we've got a television screen in this studio
that is the size of a cinema screen and they're
showing pictures of Perisher and Threadbow and it's a bluebird
day down there. They've had the heaps of snow and
it's just like abstracting. Oh I just want to be there. Yeah, yes,
actually that is my bad, and I do apologize, but welcome.
Speaker 3 (12:41):
Well, thanks Cam, good morning, good morning, good morning.
Speaker 1 (12:45):
Now, look, Ashley, can you give us an overview of
co living and what it all sort of looks like,
how it works?
Speaker 6 (12:49):
Yeah, yeah, So you've started describing it.
Speaker 4 (12:53):
It is.
Speaker 6 (12:53):
It is different, it's and that can be a little
bit hard for people to get their minds around. But
typically what it is is that everyone has their own bedroom,
probably their own bathroom and little kitchenette so there might
be a small fridge, a little sink and that sort
of setup. And then they also have access to a
(13:14):
communal space and that could be a really big kitchen,
it could be lounges separate or all combined, and spaces
like barbecues and open spaces. So essentially you get your
own living space, you get to your own sleeping and
own private space that you can have, and then you
also get access to communal facilities and most importantly that
(13:37):
sense of community.
Speaker 3 (13:39):
Okay, and who is it best suited to do? You reckon.
Speaker 6 (13:42):
So what I'm finding is, as part of this housing
discussion is what we need to be honest, are varieties
of housing for everyone, depending on what stage of their
life they are at. So this could be really good
for a young professional, you know, if it was in Canberra,
this could be a great setup for young graduates moving
(14:05):
to start work in one of the government departments. It
could be good for key workers, so nurses, ambos teachers
who often get posted somewhere straight after they've finished their
training and don't have that friendship or that support network
around them. So it means that they've got their own
private space, but also they've got an opportunity to meet
(14:27):
new people and make friends.
Speaker 1 (14:29):
And so would this be like a cheaper form of
living than just getting like a regular apartment for example.
Speaker 4 (14:36):
Yeah, that's one of the really.
Speaker 6 (14:38):
Big benefits is where and we're seeing it slowly get
some traction in Australia. You mentioned that it is quite
big in Europe and overseas, but it is taking some
time to really kick off, and there's one or two
developments that I'm aware of that are in those early
stages in Canberra. The intention is that it is to
(15:01):
be a more afford affordable choice for those key workers,
and we know how hard it is for them to
get into the market, both renting and owning, so this
would be a great, great way for them to do so.
Speaker 2 (15:12):
Okay, and so you've mentioned sort of young professionals or
people coming into the Canbra for the first time, you know,
moving around with their work. So is this going to
be a thing in the nation's capital I.
Speaker 6 (15:24):
Think it should be. I think it's a great option.
What we see though, is and one of the issues
that we've sent around the region with co living is
people get a little bit, get a bit scared by
something new. And so one of the big things we
need to deal with as part of our community housing
(15:45):
and what we need for future Canberrans is to stop
putting our ideals and our values and what we want
for us and making everyone have that. So we need
to get the community on board with this. We need
people freak out a little if they think I'm going
to have thirty or fifty people living next door to me,
how is that going to work? But this is a
(16:06):
really good, good opportunity and good option to get young
people in.
Speaker 3 (16:10):
Yeah, okay, all right, Well it's very interesting.
Speaker 1 (16:12):
I feel like there's lots of other questions we could
ask about this, but time we might have to do
that at another do a whole other segment on this camera.
Speaker 2 (16:19):
We should I mean, I love the idea actually that
you're talking about. We shouldn't be looking at this through
our perspective. Yeah, should be like ail, we do that,
don't we?
Speaker 4 (16:28):
Yeah?
Speaker 2 (16:28):
Will we try?
Speaker 4 (16:29):
Yeah?
Speaker 3 (16:30):
Yeah?
Speaker 4 (16:30):
Correct it.
Speaker 6 (16:31):
Everything has its place for someone. Yeah, it doesn't mean
that you need to have it, so I think that's
really important.
Speaker 3 (16:38):
Yeah.
Speaker 1 (16:38):
I think that's just a general good life lesson actually across.
Speaker 3 (16:41):
The board, not just with this.
Speaker 1 (16:43):
I'm going to walk away thinking about that. That's awesome, Ashley,
thanks so much for your time this morning.
Speaker 3 (16:48):
I have a great weekend thanks to a Thanks Cam,
you too. Cheers.
Speaker 1 (16:51):
It's Ashley Bury, Property Council Act and Capital Region Executive Director.
Speaker 2 (16:56):
Well those are the interviews we most enjoyed in last
week's Mixed one O six one three real estate Show.
If you love hearing about the latest trends, or you're
just up for a sticky beak, be sure to drop
by for a listen this Saturday between nine and ten
gam and Rene's
Speaker 3 (17:10):
Real Estate Show on Mix one O six point three
Cameron Renee's real estate show on Mix one oh six
point three be the Envy of Camera Live in de Burgert,
Northbourne Village by JW Land now selling Well.
Speaker 2 (00:10):
Renee Hello once again and it was a big week
with the RBA handing down the announcement that not everyone,
in fact, no one wanted to hear no.
Speaker 1 (00:20):
And I feel like with this one more than others,
people were particularly surprised and disappointed, I think because there
was so much talk even on our show, with people
expecting it to go down again.
Speaker 2 (00:32):
There was plenty of talk by one Bushy Martin from
Know How Property Finance. He certainly had plenty to say
yes and we love it when Bushy comes on and
we certainly did as well on Saturday, didn't we?
Speaker 3 (00:43):
We sure did, so we loved speaking to him.
Speaker 1 (00:45):
We also spoke to Simon maguire about investing in commercial
property in Canberra.
Speaker 2 (00:49):
The landscape has changed so much, the way that we shop,
the way that we go to the shops, the way
that we work all in and around commercial property and
so very very interesting to hear Simon's take on the
landscape at the moment.
Speaker 1 (01:02):
Absolutely and another topic we covered camp co living in
Australia and people might hear this and think of a
number of different things about what it means.
Speaker 3 (01:10):
Yeah, couldn't they?
Speaker 2 (01:10):
Absolutely, And we know the Property Council of the Act
and Capital Region Executive director Ashley Berry, she joined us.
The Property Council has had quite a bit to say
about this over the last twelve months or so, and
again it was interesting to hear her take on it.
Speaker 3 (01:25):
It sure was and Ashley's awesome.
Speaker 2 (01:26):
We love yes, absolutely all right, that's what we have
lined up for you in our podcast today. Thank you
so much for joining. Thanks to JW Land as well
for helping us out. It's Mixed one O six point three,
our real estate show podcast.
Speaker 1 (01:39):
We had some news throughout the week, not the news
we wanted, not the news anyone wanted to hear.
Speaker 3 (01:44):
Not the news most people were expecting.
Speaker 4 (01:46):
Yep.
Speaker 3 (01:47):
And you know when it came through, I remember my
partner was.
Speaker 1 (01:51):
Looking it up and checking on his phone, like what
stories to come through about it, and he sort of said, oh,
it hasn't happened, and I was like, sorry, what.
Speaker 3 (01:59):
Yep, sorry what?
Speaker 2 (02:01):
So, of course we're talking about the RBA and their
decision on the cash rate on Tuesday, and were you
saying before that you even had a little reminder on
your phone.
Speaker 1 (02:11):
I had a reminder set in my phone to contact
the bank because you know, like when interest rates do
get dropped, you if you want it to take effects
sooner rather than later, you have to chase it, right,
So they're not going to be in a rush to
do it.
Speaker 3 (02:24):
So I had to remind it in.
Speaker 1 (02:25):
My phone contact the bank on this day, and so
I've had to delete that.
Speaker 2 (02:29):
So in getting our next guest organized, we had some
email banter, let's just say, a colorful banter showing backwards
and forwards. Bushy Martin from Know How Property Finance joins
us right now, Good morning.
Speaker 1 (02:41):
Bushy, he cam hi, good good, good Now, look this
announcement through the week, right at the base level, why
did the RBA hold off on cutting the rate again?
Speaker 5 (02:53):
Yeah, I'd with you guys. The rate decision was a
bit like being six points up with thirty seconds left
on the clock, thinking we've actually got the game in
the bay, only to see the Empire call for a
video review. We all for the eight Cup was a
sure thing, but they've hit pause and said, well, let's
check the replay first. But I guess we need to
think of the RBA a bit like the pilot trying
(03:14):
to find a jumbo jet in the dark. They're steering
out two trillion dollar economy only using the rearview mirror
because the data they're relying on to make rate decisions
are generally one to three months old. So taking inflationary example,
is now the two means back about two point four percent,
which is bang in there two to three percent targer band.
But understandably they want one more clear reading before they
(03:36):
the clear victory. Why because services inflation is still clinging
on like toddler glue wags. Growth is running just above
four percent, adding those global givers with the Trump tariffs
creating some uncertainty, a strike in the Middle East, and
some patchy spending here at home, and they've decided less
weight one more set of numbers before we cut again.
So they just don't want to jump the gun and
(03:58):
overheat the landing. And you know the round is we've
actually seen inflation before, only to bounce back like a
kangaroo on a trampoline. So the RBA's problem is that
I've only got that one tool, the big blunt delayed
action rates hammer, to make things happen, So they're sort
of tapping the brakes and checking the mirrors hoping that
they don't skip the economy off the Manaro Highway.
Speaker 2 (04:19):
Careful, So thank you for all the localisms, beautiful. What
do you think this will do to housing markets? First
of all, let's have a look at the nation's capital
and then maybe nationally, what's going to happen here?
Speaker 5 (04:30):
Yeah, well, as we all know, Camp is a really
special case and it's a bit unique. So you know,
we've got the solid public service, incomes, low on employment,
and let's face it, not enough homes on the market
and rental vacancy is still around two percent, which is
tired of than trying to find a car park. Of
the warmer morale on the Hansac day. But core Logic
is saying that ACT prices are already inching up zero
(04:52):
point eight percent last quarter, and that was before was
even a rate cut, and by pausing the rates, they're
actually letting the market similar rather than sizzle. So property
pundits are expecting two to three percent grow through spring,
and the ACT, which is steady and not a runaway nationally,
days have still climbed one point four percent over the quarter,
so even before the rate decision, with Brisbane and Adelaide
(05:14):
really leading the pack. So the rate pause isn't killing momentum.
It's just calming the jets so that the fomo frenzy
we're starting to see is relaxing little so Bushi.
Speaker 2 (05:24):
The numbers are the numbers, But do you think again
they've misjudged the pain that the community continues to feel.
I know off the back of a conversation with someone
here at the radio station. Through the week, it's almost
for us here in Canberra especially, it's a double whemming.
We've just had a pretty harsh budget handed down a
couple of weeks ago, and then they smash us with
this announcement on Tuesday. Do you think that they have
misjudged the pain?
Speaker 5 (05:46):
Absolutely, When you're relying on historic data, you're not really
in touch with reality. So, you know, families, for most families,
just ray pause has been a kick in the gaps.
We've seen repayments on a six hundred thousand dollars loan
on average of nine hundred dollars a month higher than
they were pre high days. And let's slay so that's
(06:08):
an entire weekly growth you run at fish Wish Market,
so you know, hard working ausi Is are really feeling squeeze.
They're cutting back on dinners out, holidays are off the agenda,
they're working extra hours. But unlike many politicians, the RBA's
role is to be Santa Cus or everyone's best mate.
Their job is sadly and I wouldn't want their job
(06:28):
to keep inflation waves, growth and unemployment came for long
term so that we don't end up paying twelve bucks
for a local bread next year.
Speaker 4 (06:35):
So, as I.
Speaker 5 (06:35):
Always say, guys, it's better to be roughly right than
precisely wrong, especially when our while it's on the line.
Speaker 3 (06:41):
Yeah, holiday, what's a holiday? You mentioned? Holidays? I don't
know what that means. Oh, goodness to me.
Speaker 1 (06:49):
All right, Well, Bushy, it's been great to chat to you.
Hopefully next time we do talk then there might have
been some positive news in between them.
Speaker 3 (06:56):
But we just have to wait and see. We'll have
to wait and see, thank you.
Speaker 5 (07:00):
Yes, I'm just jumping in there. I'm pretty confident that
the next RBA meeting there will be a rapecat and
that the economns are still predicting at least two cut
by Christmas. So they just delayed the inevitable.
Speaker 1 (07:13):
I think you Yeah, okay, gotcha. All right, well, thank
you so much. As always, Bushy Martin from know how
Property finance. They can well cam the commercial property landscape
per scene. You know, many changes in recent years, changes
in shopping habits, you know, work from home set ups,
all that sort of stuff. Skyrocketing maintenance costs, all these
things have contributed to these changes. And so with all
(07:35):
that in mind, we thought we might have a look
at how investing in commercial property has changed. And so
Simon Maguay is director at Centier real Estate and joins
us this morning. Hi Simon, this morning. Yeah, good thank you,
thanks so much for joining us. Now, look, when we
say commercial real estate broadly speaking, what are the sort
of properties that we're talking about.
Speaker 4 (07:57):
Just think about any type of business. It could be office, hospitality, retail,
trades and services, logistics, and more frequently it related businesses
like data centers, renate.
Speaker 2 (08:08):
Okay, okay, all right, So what are the main differences
between residential investment and commercial investment for anyone looking to
have a look at that as an investment option.
Speaker 4 (08:18):
Yeah, good morning. Can look, many aspects are the same.
You have a tenant, you've got depreciation on the asset.
You usually have a property manager on the asset looking
after it on your behalf. But the big difference is
the rate of return and the length of police So
in resi property you know you net two point five
to three point five percent and just for the listeners
out there, and that is the amounts you receive after
(08:41):
all the costs, after all your spends. And commercial property
in Canberra net somewhere between six to seven percent, so
it's effectively double the return on your investment as far
as the as the rent goes.
Speaker 2 (08:55):
Okay, And so is there difference in There must be
difference in risks though surely yes.
Speaker 4 (09:01):
There is cam and that's why we tell investors before
they step into the commercial property market if they are
a new investor, to do their due diligence, educate themselves.
Look agents in the commercial fielder are usually very very
helpful and always happy to sit down with somebody and
help them on the journey. So we recommend that they
find an agent by field they can trust and sit
(09:22):
down and have a good chat with them, find out
what the pitfalls and commercial properties are. Because all investments
have some risk, of course.
Speaker 3 (09:30):
Yeah, of course.
Speaker 1 (09:30):
And is it easy simon to buy commercial properties in
the Act.
Speaker 4 (09:35):
It's pretty easy Renee.
Speaker 6 (09:36):
Yeah.
Speaker 4 (09:37):
The big difference is the way you need to fund
a commercial property. So we find commercial properties are suitable
for established investors. It may not suit a first time investor,
but somebody who's got a portfolio already of either shares
or assets like REZI property or good equity in their
own home, they're ideal to invest in commercial real estate.
(10:00):
So we think, yeah, it is pretty easy to get
in and in the Act people are incentivized as well,
so there's no stamp duty on commercial property up to
about two million dollars, and the majority of investors in
the Act that range is probably what they're looking at.
Somewhere between five hundred and two million dollars is the
range not purchasing anyway?
Speaker 3 (10:19):
Yeah, okay.
Speaker 1 (10:20):
And so based on all of that, can you recommend
a few types to look at?
Speaker 4 (10:25):
I'd recommend a few areas for sure. So Camera is
lacking good industrial estates. We've only really got three main centers,
which is Mitchell, Fishwick and Hume. We are probably short
of industrial areas at the moment. So industrial has been
an evergreen for many years, so any industrial property is
(10:45):
probably good to look at. Prime example is there's some
great properties in hum at the moment on Shepard Street,
Hills Station, Business Park pops to mind. You know, you
can buy property in there from around seven hundred to
nine hundred and fifty thousand and that sort of six
low six percent return on it. They'd be an excellent
thing for our first time invested to look at.
Speaker 3 (11:07):
What sort of property is that.
Speaker 4 (11:09):
That's an industrial warehouse CAM designed for large vehicle access,
high roller door access. They have mezzanines built in. Those
ones are specked up a little bit more than most.
They've double blaze. They've got still staircases in them, which
is unusual in that range of product, and many of
them have actually got yards, which is also unusual in
(11:32):
that type of product. So they're fairly popular. There's only
a handful left there actually.
Speaker 1 (11:37):
Yeah, okay, all right, well, it's been really interesting to
talk upen that with you. I feel like we could
speak longer about this.
Speaker 3 (11:42):
We'll have to leave it there. Simon, thank you so
much for sharing that with us this morning.
Speaker 4 (11:46):
Thanks Na, Thanks Cam.
Speaker 3 (11:47):
I have had a great day you too.
Speaker 1 (11:49):
Simon Maguire, Director at Sentier Real Estate. Well can when
you hit a term co living, a bunch of things
come to mind, right, And I'm sure it varies, you know,
between different people, different sort of living arrangements come to mind.
We're talking about a particular type that seems to be
popular overseas, and we want to know if it's becoming
(12:10):
a thing here or if it's going to become a
thing here. And Ashley Berry is Property Council Act and
Capital Region Executive Director.
Speaker 3 (12:16):
Ashley. Good morning, Ashley, good morning. How are you going?
Speaker 5 (12:21):
My bad?
Speaker 2 (12:22):
That's my bad. You know what I'm doing?
Speaker 3 (12:23):
What are you doing?
Speaker 2 (12:24):
We've got we've got a television screen in this studio
that is the size of a cinema screen and they're
showing pictures of Perisher and Threadbow and it's a bluebird
day down there. They've had the heaps of snow and
it's just like abstracting. Oh I just want to be there. Yeah, yes,
actually that is my bad, and I do apologize, but welcome.
Speaker 3 (12:41):
Well, thanks Cam, good morning, good morning, good morning.
Speaker 1 (12:45):
Now, look, Ashley, can you give us an overview of
co living and what it all sort of looks like,
how it works?
Speaker 6 (12:49):
Yeah, yeah, So you've started describing it.
Speaker 4 (12:53):
It is.
Speaker 6 (12:53):
It is different, it's and that can be a little
bit hard for people to get their minds around. But
typically what it is is that everyone has their own bedroom,
probably their own bathroom and little kitchenette so there might
be a small fridge, a little sink and that sort
of setup. And then they also have access to a
(13:14):
communal space and that could be a really big kitchen,
it could be lounges separate or all combined, and spaces
like barbecues and open spaces. So essentially you get your
own living space, you get to your own sleeping and
own private space that you can have, and then you
also get access to communal facilities and most importantly that
(13:37):
sense of community.
Speaker 3 (13:39):
Okay, and who is it best suited to do? You reckon.
Speaker 6 (13:42):
So what I'm finding is, as part of this housing
discussion is what we need to be honest, are varieties
of housing for everyone, depending on what stage of their
life they are at. So this could be really good
for a young professional, you know, if it was in Canberra,
this could be a great setup for young graduates moving
(14:05):
to start work in one of the government departments. It
could be good for key workers, so nurses, ambos teachers
who often get posted somewhere straight after they've finished their
training and don't have that friendship or that support network
around them. So it means that they've got their own
private space, but also they've got an opportunity to meet
(14:27):
new people and make friends.
Speaker 1 (14:29):
And so would this be like a cheaper form of
living than just getting like a regular apartment for example.
Speaker 4 (14:36):
Yeah, that's one of the really.
Speaker 6 (14:38):
Big benefits is where and we're seeing it slowly get
some traction in Australia. You mentioned that it is quite
big in Europe and overseas, but it is taking some
time to really kick off, and there's one or two
developments that I'm aware of that are in those early
stages in Canberra. The intention is that it is to
(15:01):
be a more afford affordable choice for those key workers,
and we know how hard it is for them to
get into the market, both renting and owning, so this
would be a great, great way for them to do so.
Speaker 2 (15:12):
Okay, and so you've mentioned sort of young professionals or
people coming into the Canbra for the first time, you know,
moving around with their work. So is this going to
be a thing in the nation's capital I.
Speaker 6 (15:24):
Think it should be. I think it's a great option.
What we see though, is and one of the issues
that we've sent around the region with co living is
people get a little bit, get a bit scared by
something new. And so one of the big things we
need to deal with as part of our community housing
(15:45):
and what we need for future Canberrans is to stop
putting our ideals and our values and what we want
for us and making everyone have that. So we need
to get the community on board with this. We need
people freak out a little if they think I'm going
to have thirty or fifty people living next door to me,
how is that going to work? But this is a
(16:06):
really good, good opportunity and good option to get young
people in.
Speaker 3 (16:10):
Yeah, okay, all right, Well it's very interesting.
Speaker 1 (16:12):
I feel like there's lots of other questions we could
ask about this, but time we might have to do
that at another do a whole other segment on this camera.
Speaker 2 (16:19):
We should I mean, I love the idea actually that
you're talking about. We shouldn't be looking at this through
our perspective. Yeah, should be like ail, we do that,
don't we?
Speaker 4 (16:28):
Yeah?
Speaker 2 (16:28):
Will we try?
Speaker 4 (16:29):
Yeah?
Speaker 3 (16:30):
Yeah?
Speaker 4 (16:30):
Correct it.
Speaker 6 (16:31):
Everything has its place for someone. Yeah, it doesn't mean
that you need to have it, so I think that's
really important.
Speaker 3 (16:38):
Yeah.
Speaker 1 (16:38):
I think that's just a general good life lesson actually across.
Speaker 3 (16:41):
The board, not just with this.
Speaker 1 (16:43):
I'm going to walk away thinking about that. That's awesome, Ashley,
thanks so much for your time this morning.
Speaker 3 (16:48):
I have a great weekend thanks to a Thanks Cam,
you too. Cheers.
Speaker 1 (16:51):
It's Ashley Bury, Property Council Act and Capital Region Executive Director.
Speaker 2 (16:56):
Well those are the interviews we most enjoyed in last
week's Mixed one O six one three real estate Show.
If you love hearing about the latest trends, or you're
just up for a sticky beak, be sure to drop
by for a listen this Saturday between nine and ten
gam and Rene's
Speaker 3 (17:10):
Real Estate Show on Mix one O six point three
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!