Get Invested: Scott O’Neill on investing beyond your backyard

Scott O’Neill and his wife, Mina, are experienced, sophisticated and active property investors who retired from their day jobs at the tender age of 28! That’s a story worth exploring. They did it by investing in both residential property initially and then evolved into commercial property. 

With a property portfolio that boasts in the order of 32 properties with a value of $22M releasing just under half a million in passive income every year, Scott’s and Mina’s passion, commitment and hard work has paid off in spades - so much so that they were able to take a six month sabbatical from working life and do nothing but travel Europe on the strength of their property portfolio passive income.

They then got bored of the good life without purpose and fulfilment and decided to teach others how to reach the same property success, which is where their business Rethink Investing was born.

And not just content with their own success, Scott and the Rethink Investing team have now helped over 1800 clients purchase in excess of $1 billion in real estate since 2015.

Rethink Investing has also been recognised as a BRW Fast 100 company and has become Australia’s number one buyer’s agency for commercial property investors.

So while there are certainly differences between residential and commercial property investment, the pros far outweigh the cons in the context of adding high cash flow assets into your portfolio mix, especially in the latter stages when you’ve built up significant, accessible equity in your residential portfolio like Scott and Mina did.

And Scott and I are also of the same belief that investing now is one of the greatest opportunities we will ever see. With Scott’s commercial properties, they are seeing net yields of seven per cent plus, with commercial lending interest rates under three per cent. 

That’s a massive four per cent gap! Historically, we expect to see a gap of two per cent. 

This means that right now there’s the opportunity of a lifetime to get the best cash flow returns ever in commercial property. 

This, in turn, should result in strong capital growth as the gap between these two metrics narrows. So Scott’s message is simple: Don’t think of commercial property as a risky investment just because we’re in a pandemic. 

Scott’s team target the most resilient types of businesses. And as you’ll here during our chat today, Scott’s strategy of buying medical, logistics, and other essential services–type investments with strong tenants has proven to be very resilient. 

And In recognition of their outstanding achievements in both residential and commercial property investment, in 2019 Your Investment Property awarded Scott ‘Strategic Property Investor Of The Year’.

Scott is also the host of top rating podcast, Inside Commercial Property which you can find at https://www.rethinkinvesting.com.au/podcast/, while Scott and Mina are also the authors of the great book on commercial property investing, Rethink Property Investing. Grab yourself a free introductory chapter at https://www.rethinkinvesting.com.au/book/ by inserting the code (Bushy) in brackets alongside your name along with your email address.

So in this episode we’re traversing the full ins and outs of Scott and Mina’s full journey through residential to commercial property and picking up some absolute gems, learnings, tips and tricks for you along the way, including:

The impacts of a forever deadline

The leverage benefit of property over shares

How rentvesting was critical to establishing their property portfolio

How to avoid red line stress when investing

How to transition from residential to commercial property

He dispels the common myths that are held around commercial

We talk about how you can access syndicates to secure commercial property

Scott outlines the benefits of a two speed portfolio

He outlines their transition to retirement strategy

He gives you a great run around the country on which areas he thinks are best to invest in

And he highlights why now is actually a good time to get rid of and sell any dud properties you have in your portfolio that may be holding you back

And much of Scott and Mina’s success is owed to the fact that they’ve always looked beyond their own backyard. Beyond their familiar territory in Sydney, and even beyond the traditional investment focus of residential property to commercial property. They like to do things differently, to challenge the status quo. They like to take calculated risks, and they soon realised that you can invest more successfully outside of where you live. 

By looking beyond your own backyard, you can look to different asset classes to get you there, and discover that the local residential market is not the only way. 

There is no doubt that today’s conversation will inspire you to go to the next level in your property investment. So no matter where you’re at, I’d like to invite you to join our unique KnowHow Property Freedom Flight program, where I’ll personally guide you through my proven process for property investment success. 

To book your ticket or find out more, click here https://knowhowproperty.com.au/freedom-fighters.

And if you want to hear more from Scott along with all of Australia’s leading property investors and independent professionals, join me and the other 120,000 plus regular listeners every week as I now anchor host the country’s most popular and longest running property show Realty Talk, so I look forward to seeing you on channels.realty.com.au/realtytalk where we share short and sharp take home tips and tricks on all things property. 

Scott's book recommendation:

The Secret Life Of Real Estate and Banking by Phillip Anderson

Get Invested is the leading weekly podcast for Australians who want to learn how to unlock their full ‘self, health and wealth’ potential.

Hosted by Bushy Martin, an award winning property investor, founder, author and media commentator who is recognised as one of Australia’s most trusted experts in property, investment and lifestyle, Get Invested reveals the secrets of the high performers who invest for success in every aspect of their lives and the world around them.

Remember to subscribe on your favourite podcast player, and if you're enjoying the show please leave us a review.

Find out more about Get Invested here https://bushymartin.com.au/get-invested-podcast/ 

Want to connect with Bushy? Get in touch here https://bushymartin.com.au/contact/ 

This show is produced by Apiro Media - http://apiropodcasts.com

See omnystudio.com/listener for privacy information.