Few Australian property investors reveal their tips for getting rich

An Australian couple who have built a $47 million real estate portfolio have revealed the trick to success, and it’s something most of us have never thought about.

If you want to get rich these days, you have to think outside the box and turn your attention away from the myopic obsession with the housing market.

That’s according to Australian real estate investors Scott and Mina O’Neill, who have grown a portfolio now worth $47 million by taking a different path than most.

Mina, 34, and Scott, 35, are both from Sydney and first worked in marketing and civil engineering before getting tired of the 9-5 grind and longing for freedom.

They turned their attention to investing and now run a commercial purchasing agency Rethink investing, which has grown from a two-man business to 38 employees. The couple currently own 26 properties, three of which are ongoing.

Their portfolio has given them financial freedom from their jobs, and now they are helping others enter the commercial real estate markets.

They also enjoy being able to travel and work in different locations for months of the year.

Their top advice for those who want to get rich? Focus on the business market.

“Now is a good time to invest,” the couple said. “In a higher inflation market like the one we are in now, we are seeing commercial rents rising at the fastest pace in decades.”

The couple, who also wrote a book, Reconsider investing in real estatesaid the trick is to look broadly at options.

“Don’t consider investing only in your own environment. Australia has many markets that move at different stages of the real estate cycle.

“Invest for cash flow and capital growth. Many investors do not prioritize cash flow and focus only on growth. This is a mistake if you want to create a great retirement portfolio, cash flow is essential.”

If necessary, home ownership can be a stepping stone to commercial property.

“Consider residential real estate if you don’t have a down payment large enough for commercial purposes. Please note that we recommend having at least $250,000 as a down payment for a commercial property.

“And if you don’t have the time to learn about commercial real estate investing from start to finish, consider using a knowledgeable/experienced broker.”

The duo say one of the biggest surprises they are greeted with from their clients is the misconceptions surrounding commercial investing.

“We’re surprised that more people don’t consider commercial real estate in the first place. The numbers speak for themselves,” the couple said.

“We often hear ‘this is too good to be true’ when it comes to how quickly you can build a passive income with commercial real estate. They’re so used to negatively tuning homes that it’s interesting to see how commercial flies under the radar.

“Once they buy a commercial property, they rarely go back to residential investment.”

The pair said they’ve spent thousands of hours researching the commercial sectors to determine which ones perform best.

Their investment choices include multiple industrial warehouses due to extremely tight vacancy rates, high rental growth and strong capital appreciation results, along with two fast food drives through investments – a KFC and Hungry Jacks with a 15 year lease – as this sector has proven to be extremely resilient in all market conditions. .

They have also bought a shopping center with a supermarket and pharmacy as the main tenant, as well as medical properties such as dentists and GPs, as they are safe, recession-proof tenants.

All of these tenants together give the couple about $2.5 million in annual rent.

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