Commercial Is Better Than Residential? The Great NZ Property Debate. Featuring Logan Roach.

Which is the superior investment: residential or commercial property? This episode provides a complete financial breakdown. The core difference comes down to Net vs. Gross Yield. In residential, you get a gross yield (e.g., 2-3%) and are responsible for all outgoings—rates, insurance, and management. With commercial, you get a net yield (e.g., 5-7%) because the tenant is legally responsible for all of those costs (known as OPEX). The income you receive is pure. We explore the other major advantages of commercial, including long-term leases (3, 10, or even 20 years vs. a 1-year residential term) and a hands-off, professional B2B relationship. But it's not that simple. Residential is far more "bank-friendly," with 30-year terms and higher LVRs. So, what's the ultimate strategy? We reveal how smart investors "hack" the system by leveraging their residential portfolio (with its low interest rates and high leverage) to fund their commercial purchases, getting the best of both worlds. We also cover a complete "State of the Nation" for commercial real estate, including: The Landlord's Dilemma: The counter-intuitive reason why a landlord would rather leave a property empty than accept a lower rent (hint: it protects the building's entire valuation). The "Add-Value" Play: Why the high-vacancy office market—hit hard by work-from-home—is the number one opportunity for investors to "rinse and repeat" by creating equity. Sector Breakdown: A look at why industrial property is king, suburban retail is resilient, and different sectors offer different yields. Financing Rules: How owner-occupiers (a business buying its own building) can still get 100% bank lending. Talk with an expert: Logan (Commercial Property: https://www.colliers.co.nz/en-nz/expe... Daniel (Mortgages): https://blueprintfinance.co.nz/#danie... Rory (Insurance): https://blueprintfinance.co.nz/#rory-... Make a change: Get a Pre-Approval: https://blueprintfinance.co.nz/mortga... Restructure your Mortgage: https://blueprintfinance.co.nz/refix-... Refinance an Investment Portfolio: https://blueprintfinance.co.nz/proper... See the full podcast archive: https://blueprintfinance.co.nz/the-po... Subscribe to download mortgage calculators: https://blueprintfinance.co.nz/poai-n...