
Most read
Pros and cons: Working in the gig economy...
Pros and cons: Working in the gig economy...

Latest Podcast
Is the market overheating; should ETFs take your fancy, and what’s happening t...
Is the market overheating; should ETFs take your fancy, and what’s happening t...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Invest
The importance of diversification in the property market
Despite the strong gains in sections of the property market, investors are being reminded not to “put all your eggs in one basket”.

The importance of diversification in the property market
Despite the strong gains in sections of the property market, investors are being reminded not to “put all your eggs in one basket”.

In a conversation on nestegg sister publication Smart Property Investment’s podcast, director of Rethink Investing Scott O’Neill discusses the importance of diversification when building a property portfolio.
Having previously invested in residential property, Mr O’Neill explained he has “moved more into commercial, so I’ve purchased four more commercials since then”.
“[I’ve] invested in a syndicate as well which is basically purchasing large-scale commercial assets but owning portions of it. It’s almost like a form of diversification. You’ve got bigger, better-quality tenants and you don’t have to own 100 per cent of the assets sometimes,” the property investor explained.
Knowing the businesses
Just like investing in residential property, it is vital for investors in commercial real estate to understand the market they are buying into.
While some leases “just need a tidy-up”, others have potential red flags that property managers need to be aware of.
“One thing I would always try and get from the current owner is bank statements, or at least rental receipts to see the timing of their payment, because if they’re paying in the first three days of every month for the last 12 months, that’s a pretty good indication they’re going to do that when you own it,” Mr O’Neill explained.
Finally, the property manager advocates for visiting the site and having a conversation with the locals before purchasing any retail assets.
“A lot of just on-the-ground research, like going to see these properties, especially when it’s retail-related,” Mr O’Neill said.
“I don’t go look at all warehouses for instance, because you don’t care about foot traffic and stuff like that, but a good retail asset, like you know, a shopping centre, you need to go and just sit in it, have a chat to the café owners and that.”
Mr O’Neill concluded: “They’re always going to be the most negative, I’ve found, because, especially if some random [buyer] starts asking how business is, what benefit do they have to say they’re going great? But it’s still good to hear what they’ve got to say and just take it on board.”
Read more about properties in this article Australia property market.
About the author

About the author


Property
New home sales continue to soar in March
A strong level of building activity is expected in 2021 and 2022, given a strong spike in home sales during the year to March. ...Read more

Property
HomeBuilder extension announced
One of the government’s most successful schemes, HomeBuilder, has been extended, bringing the total level of expected government support for the construction sector to $2.5 billion. ...Read more

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more

Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

Property
New home sales continue to soar in March
A strong level of building activity is expected in 2021 and 2022, given a strong spike in home sales during the year to March. ...Read more

Property
HomeBuilder extension announced
One of the government’s most successful schemes, HomeBuilder, has been extended, bringing the total level of expected government support for the construction sector to $2.5 billion. ...Read more

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more