Commercial vs Residential Property: Why Net Yields Can Be Nearly Triple | OD #30

Two investors, $1 million each. One buys a house, the other buys a small warehouse in an industrial estate. A year later the house has put about $24,000 in their pocket and the warehouse about $65,000. Same money in, nearly triple the income out. So what's going on? In this episode Oscar breaks down commercial vs residential property investing, starting with the yield trap most investors miss: commercial yields are usually quoted net, residential yields are usually quoted gross. A house renting at $750 a week looks like a 3.9% yield, but after property management, council rates, insurance, land tax, water and maintenance it nets closer to 2.4%. A warehouse at 6.5% net, where the tenant pays most of the outgoings, keeps close to the full 6.5%. We cover: • Gross vs net yield, and how to compare them properly • Where yields sit right now for houses, units, industrial and retail • Why SMSF investors are looking at commercial property • The trade-offs: vacancy risk, 30–40% deposits, higher rates and shorter loan terms • Why you're buying the tenant, not just the building • Why many investors go residential first, then commercial later Follow the show, share it with someone weighing up commercial property, and leave a review with your biggest question about yields. Thinking about buying property? Book a free strategy call with Asset Road: https://www.assetroad.com.au Follow us on Instagram @zeke.guenthroth_official, @oscardonproperty and @assetroad for daily property insights. General information only. Nothing in this episode is personal financial advice. Yields and figures are examples and market estimates, not forecasts or guarantees. Consider your own circumstances and get professional advice before acting.