Latest news with #RethinkGroup
Yahoo
2 days ago
- Business
- Yahoo
Aussie multi-millionaire reveals property strategy that made him rich: 'Don't sacrifice'
Ever dreamed of living by the beach, in the inner-city buzz, or nestled in a leafy suburb that feeds your soul, however, felt that doing so would kill your chances of building wealth? You're not alone. And the good news is that you don't have to choose between lifestyle and financial freedom. In fact, for over a decade now, I've built my personal wealth, and helped thousands of Australians do the same, through a strategy called 'rentvesting', which is renting where you want to live, and investing where your money will work hardest. RELATED Buying a home still a 'stretch' so young Aussies seize on 'rentvesting' property trend $4,400 ATO car tax deduction that most Aussies miss: 'Easy win' Centrelink $1,011 cash boost for Aussie farmers doing it tough: 'Get back on track' Let's say you want to live in Bondi, Byron or Brighton. The cost of buying in these blue-chip areas is sky-high, and with the majority of homes owner-occupied, the rental yields are often extremely low - sometimes just 1-2 per cent. That means if you purchase, you're sinking hundreds of thousands in a deposit and absorbing a massive mortgage for a property that's probably underperforming from an investment standpoint. But what if you flipped the script? Instead of tying up your capital in a lifestyle property, rent in the area you love and invest in high-yield commercial or regional residential real estate. At Rethink Group, this is our bread and butter. We're talking 5-6 per cent plus yields, strong tenant demand, and, in many cases, net cash flow positive properties that actually cover your rent and still leave surplus income to reinvest. It's a wealth-building flywheel that, when set in motion early, can dramatically fast-track your journey to financial freedom. I started my own journey this way. My wife and I wanted to enjoy the lifestyle we loved, but we didn't want to sacrifice our future. We began investing in strong-yielding residential property and later moved into commercial, an area where we've helped many of our clients truly accelerate their portfolios. The result? A multi-million-dollar portfolio, flexibility to live where we want, and most importantly choice. One of the underrated benefits of rentvesting is agility. You're not locked into one market or one lifestyle location. You can move for work, lifestyle, or family without the friction of buying and selling. Meanwhile, your investments can remain in high-growth, high-yield areas across Australia, whether that's an industrial property in Brisbane, a regional centre in WA, or a medical tenancy in Adelaide. You're also less likely to make emotional decisions. Buying your 'forever home' too early often means compromising your investment strategy. Rentvesting keeps you focused on returns, not renovations. At Rethink Group, we work with clients every day who want it all; lifestyle and legacy. And the truth is, with the right strategy, you can absolutely have both. Our approach is tailored. We build high-performance property portfolios using both residential and commercial assets, engineered to deliver strong yields, smart tax outcomes, and future-proof wealth, all while our clients live exactly where they want to be. Rentvesting isn't for everyone, but if you're serious about wealth and value lifestyle, it's a strategy worth exploring. Because the best time to build wealth is now and the best place to live is wherever makes you feel most alive. Scott O'Neill is a prominent Australian property investor featured in AFR's Young Rich List three years in a row. He is an entrepreneur and Founder & CEO of Rethink Group a premium property investment group, host of the top commercial property podcast "Rethink Investing's Inside Commercial Property'', co-author of "Rethink Property Investing'' Australia's number one commercial property investing book.
Yahoo
11-05-2025
- Business
- Yahoo
Ex-Macca's worker's $200,000 warning as property portfolio exceeds $100 million
People often ask the biggest mistake you can make in commercial property. Mine? Assuming the property manager had it handled. That assumption cost me nearly $200,000 in lost rent and equity. Our residential portfolio was performing well. We'd just added a few multi-tenant commercial sites, and with a solid team in place, so we turned our attention elsewhere; growing Rethink Group, building a house, raising a family. Then came the shock: leases renewed below market rate, rent reviews missed, and rent left uncollected. One lease hadn't been increased in two years. It cost us six figures and it was entirely avoidable. Since then, I've relied on eight key principles to build our portfolio to be worth more than $100 million. Here's a snapshot for Yahoo Finance readers. Good investing starts well before you even inspect a property, it starts with your personal money habits. When I began investing, I worked multiple jobs including McDonald's, nightclub shifts, cleaning cars, and funnelled every dollar into savings. I wasn't earning a huge salary, but I was focused. That foundation of discipline is what allowed me to buy my first property early and keep scaling from there. Track your expenses ruthlessly. Know what's essential, what's not, and redirect every spare dollar toward your deposit or next investment. The power of compounding starts with your behaviour. Residential property investors often make decisions based on emotion, they imagine living there, they get attached. Commercial investing demands the opposite. This is business. You need to evaluate a property the same way a business owner would assess a new venture What's the return? What's the risk? How reliable is the cash flow? Switching to a commercial mindset was one of the most powerful decisions I ever made. Forget about location bias. The entire country is your marketplace. Think like a professional, not a hobbyist. Commercial real estate is too complex to wing it. You need the right team behind you and that includes a commercial property solicitor, accountant, mortgage broker, insurance broker, buyer's agent, and a great property manager. I once nearly lost a deal worth six figures because of a hidden clause it was my solicitor who picked it up and saved the deal. That moment reinforced that a good team doesn't just cost money they save you money. Don't use your residential contacts for commercial deals. They often don't understand the risks, structures, or tax implications. Not all properties are equal. One of the biggest mistakes investors make is buying the wrong asset in the wrong area, or with the wrong lease. I target essential service tenants, like medical centres, supermarkets, and logistics companies, because they offer stability and resilience in all markets. We've had national brands like ALDI, KFC, and Chemist Warehouse in our portfolio. They're not glamorous, but they're rock-solid. Always prioritise tenant quality, lease length, and yield. If the numbers don't work, walk away. Some of my best deals never made it to market. I wrote letters, cold-called owners, and hunted down off-market opportunities before anyone else knew they existed. In one case, I bought a property at a significantly lower price just by getting in first and avoiding competition. Great deals are created, not found. Build a network, be proactive, and don't be afraid to ask. Finance can make or break a deal. I once had to take a personal loan at the eleventh hour to meet settlement, not ideal, but worth it to lock in a property with huge upside. Commercial lending is different to residential. It's more nuanced, more relationship-based, and often slower. That's why preparation matters. Get pre-approved, know your serviceability, and have backup options. Delays kill deals. Negotiation isn't about being aggressive, it's about being prepared. I go into every deal knowing exactly what the property is worth, how it compares in the market, and what the upside is. That gives me the confidence to stand firm or walk away. I often submit offers late on a Friday. Agents don't like uncertainty over the weekend, and that pressure can work in your favour. Let data lead your offers, not emotion. And be willing to walk. Power is in the ability to say no. As I shared earlier, failing to audit leases monthly cost us six figures. Learn from that mistake and don't assume your manager has it covered. How to avoid my mistake? Audit your leases monthly. Never let a property manager renew without reviewing the market rate. You could lose six figures in equity and once it's locked in, you can't go back. Understand your tax structure. Whether you own as an individual, trust, company or through your SMSF, the tax implications are huge. Get it wrong, and you could face double stamp duty, lost depreciation, or tens of thousands in excess tax. Claim what you're entitled to. Depreciation, loan interest, travel, maintenance, even management fees these can all be deducted. Done properly, your after-tax yield can significantly boost your income. Commercial property is an untapped goldmine for Australians, but it's not for the set-and-forget investor. You need structure, discipline, and a hands-on approach. I've made mistakes. But I've also built a life of freedom and wealth by sticking to these eight steps. Learn from my experience, and you'll be in a far better position to avoid the $200,000 mistake and build a portfolio that works for you. Scott O'Neill is a prominent Australian property investor featured in AFR's Young Rich List three years in a row. He is an entrepreneur and Founder & CEO of Rethink Group a premium property investment group, host of the top commercial property podcast "Rethink Investing's Inside Commercial Property'', co-author of "Rethink Property Investing'' Australia's number one commercial property investing while retrieving data Sign in to access your portfolio Error while retrieving data
