In a rapidly evolving property landscape, investors Adam and Vicki Stewart have discovered that the 'unsexy' side of real estate—commercial property—could be the smartest move they ever made. After years of residential investments, the couple turned to Rethink Investing and made the leap into the world of commercial property. This strategic decision, which some investors overlook, has yielded them substantial rewards and financial freedom.
Transitioning from Residential to Commercial
Adam Stewart, a self-proclaimed “numbers guy," made his first commercial property purchase with Rethink Investing’s guidance, acquiring an off-market industrial building in Brisbane for $1.88 million. Nine months later, he was offered $1 million more than what he had paid. Rather than cashing in, Adam and Vicki opted to re-value the property, reinvesting the equity into another commercial asset—this time, acold storage facility outside Toowoomba.
This strategic move, advised by Rethink Group’s CEO, Scott O’Neill, helped the Stewarts maximise their investment returns without sacrificing long-term growth.
The Commercial Advantage
The Stewarts’ story reflects a growing trend among savvy investors: switching from residential to commercial real estate for greater financial security. While residential property can offer tax benefits through negative gearing, Adam Stewart quickly realised that it was no longer serving his family’s goals. The couple wanted time and flexibility—a lifestyle where they could enjoy life on the Gold Coast with their children, free from the constraints of full-time corporate roles.
“Negative gearing in residential property was no longer a benefit, as it relies on an additional income line to gain tax efficiency,” Adam noted. "Residential property wasn’t meeting our goals of gaining time back and having choice and flexibility.”
Commercial property, by contrast, provided cash flow, equity growth, and the time freedom they sought. Within just two years, the Stewarts achieved a 100% profit on their portfolio, which now delivers passive monthly income. This success has allowed them to step back from demanding corporate roles, spend quality time with their family, and live life on their terms.
Overcoming Misconceptions About Commercial Property
One of the biggest barriers for residential investors hesitant to explore commercial property is the fear of long vacancy periods. However, Adam and Vicki’s experience dispels these myths. Guided by Rethink Investing, they capitalised on the high demand for industrial spaces in Queensland, where rental returns have surged 60% since the onset of the COVID-19 pandemic.
Scott O'Neill, Rethink Group’s CEO, highlighted the industrial property market's potential: "It’s like a housing crisis, but for industrial property. Interest rates have risen, so fewer owner-occupiers are buying. Instead, they’re becoming renters." This shift has created enormous demand for industrial rentals, driving up both rental rates and property values.
Expert Guidance with Rethink Investing
Rethink Investing’s expertise in the commercial property sector has been a crucial factor in the Stewarts’ success. By providing data-driven insights and exclusive access to off-market opportunities, Rethink Investing offers tailored investment strategies that meet clients' unique goals. Whether you're a seasoned investor or new to commercial real estate, our team is committed to helping you achieve your financial objectives.
The Stewarts' story is not unique. A part of Rethink Investing’s growing community of successful investors, Adam and Vicki now work alongside Scott O’Neill, sharing their knowledge with others who are ready to transition from residential to commercial property investment. Their journey is a powerful testament to the long-term rewards that commercial real estate can provide—when guided by the right team.
Learn more about Rethink Commercial Education online course.
