In a rapidly evolving property landscape,investors Adam and Vicki Stewart have discovered that the 'unsexy' side of realestate—commercial property—could be the smartest move they ever made. Afteryears of residential investments, the couple turned to Rethink Investing andmade the leap into the world of commercial property. This strategic decision,which some investors overlook, has yielded them substantial rewards andfinancial freedom.
Transitioning from Residential to Commercial
Adam Stewart, a self-proclaimed"numbers guy," made his first commercial property purchase withRethink Investing’s guidance, acquiring an off-market industrial building inBrisbane for $1.88 million. Nine months later, he was offered $1 million morethan what he had paid. Rather than cashing in, Adam and Vicki opted to re-valuethe property, reinvesting the equity into another commercial asset—this time, acold storage facility outside Toowoomba.
This strategic move, advised by RethinkInvesting’s Managing Director, Scott O’Neill, helped the Stewarts maximisetheir investment returns without sacrificing long-term growth.
The Commercial Advantage
The Stewarts’ story reflects a growingtrend among savvy investors: switching from residential to commercial realestate for greater financial security. While residential property can offer taxbenefits through negative gearing, Adam Stewart quickly realised that it was nolonger serving his family’s goals. The couple wanted time and flexibility—alifestyle 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 propertywas no longer a benefit, as it relies on an additional income line to gain taxefficiency,” Adam noted. "Residential property wasn’t meeting our goals ofgaining time back and having choice and flexibility.”
Commercial property, by contrast,provided cash flow, equity growth, and the time freedom they sought. Withinjust two years, the Stewarts achieved a 100% profit on their portfolio, whichnow delivers passive monthly income. This success has allowed them to step backfrom demanding corporate roles, spend quality time with their family, and livelife on their terms.
Overcoming Misconceptions About CommercialProperty
One of the biggest barriers forresidential investors hesitant to explore commercial property is the fear oflong vacancy periods. However, Adam and Vicki’s experience dispels these myths.Guided by Rethink Investing, they capitalised on the high demand for industrialspaces in Queensland, where rental returns have surged 60% since the onset ofthe COVID-19 pandemic.
Scott O'Neill, Rethink Investing’sManaging Director, highlighted the industrial property market's potential:"It’s like a housing crisis, but for industrial property. Interest rateshave risen, so fewer owner-occupiers are buying. Instead, they’re becomingrenters." 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 thecommercial property sector has been a crucial factor in the Stewarts’ success.By providing data-driven insights and exclusive access to off-marketopportunities, Rethink Investing offers tailored investment strategies thatmeet clients' unique goals. Whether you're a seasoned investor or new tocommercial real estate, our team is committed to helping you achieve yourfinancial objectives.
The Stewarts' story is not unique. Aspart of Rethink Investing’s growing community of successful investors, Adam andVicki now work alongside Scott O’Neill, sharing their knowledge with others whoare ready to transition from residential to commercial property investment.Their journey is a powerful testament to the long-term rewards that commercialreal estate can provide—when guided by the right team.
