THE PROPERTY NERDS: Higher returns, lower hassle – The commercial property advantage

In this episode of The Property Nerds, co-hosts Arjun Paliwal and Adrian Lee from InvestorKit, and Jack Fouracre from Fouracre Financial, explore the growing appeal of commercial property investment for investors looking to diversify beyond residential assets.

The hosts highlight how commercial property delivers higher rental yields, lower management demands, and stronger cash flow, making it a natural progression for many residential investors.

Two main pathways are outlined: a traditional strategy of building a residential portfolio before transitioning to commercial closer to retirement, and an accelerated option for high-income or early investors to enter the commercial space sooner.

The discussion emphasises the importance of structuring investments through trusts or companies to improve efficiency, leverage residential growth, and expand borrowing capacity.

The episode also spotlights self-managed super funds as a way for investors to leverage strong borrowing power and favourable loans, while urging business owners to reinvest profits strategically in commercial property to optimise tax outcomes.