Looking at investing in property interstate or in commercial assets? Arjun Paliwal, Buyers Agent from InvestorKit shares the opportunities that he is seeing in the market and what investment locations and types of assets he is buying for his clients.
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Here’s the transcript of the video:
Buying opportunities at the moment, what excites you, what states, what cities, any little pockets that you're interested in? Any new transport infrastructure things that have popped up that you're liking? Yeah, one trend I'm definitely working on with a few clients is commercial property. Commercial property, in particular a few medical assets have been great pickups for some of my recent customers. Now, if you think of the ageing population, you know, some of the health concerns that can come up with that sort of ageing population. There's no wonder that these types of assets are a no-brainer. At the same time you've got a lot of non-discretionary spend we're basically these patients aren't paying for everything out of their pocket. And so it's more likely for the business owners to be more successful with these type of things happening. Now that's picked up a lot of assets in that space where we've had above 7% net yields, long leases of up to you know, six to nine years including options. And so suddenly for an investor that's like wait I'm getting a significant cash flow return, a stable lease and there's an opportunity for growth because of the desire in this asset. So that's definitely one one trend. As for residential property, there's definitely some markets across, you know, Adelaide, Brisbane, other locations in Tasmania in terms of the northern parts. Launceston, Devonport, Burnie that have had some great numbers as well as regional locations. I think that's one area that a lot of people are discounting but when you take away regional and capital sort of tag line and you just say a bigger city and smaller city, yeah, you look at the same drivers. They exist and that's why price growth is not to be underestimated and regional locations as well. Yeah. Sure. You don't have one area of specialty you kind of go all over the country Don't you? So inter state, are there a couple of main areas that you actually deal with? Yeah. So one thing I really wanted to do was replicate the success that I've had in my own portfolio. People have had in their portfolio for those who have mentored me or those I'm inspired by and there was two things I really realised. One was diversification and you can get that within the same asset class. So example, buying across the country is a big part of that diversification where someone's told me, Hey Arjun, well places in Sydney, the property values have come down. What are you doing in this sort of space? What about your portfolio? Well, I've got one in Sydney, commercial in Melbourne, you know three in Brisbane, four in Tasmania, a couple here. Like the one impact, doesn't impact me. Yep. So from this component of a) cash-flow b) those same drivers and c) diversification, I was able to then go that's where I want to be for my customers. Buy across the country so they're never in a moment where one thing hits you and you're all out. But at the same time you can capture different results whilst people are holding back. Yeah. Sure.