About this episode
In this episode, Kane sits down with Luke Randazzo, Director at Burgess Rawson, one of WA’s leading commercial real estate agencies. Luke has brokered over $450 million in transactions and is one of the youngest shareholders in the business.
Luke and Kane get into the real stuff: what the new negative gearing and capital gains tax changes mean for investors, why commercial property is now wide open while residential has been shut down for investors, the difference between office, retail and industrial assets, how self-managed super funds can be used to buy commercial property, the risks of long term leases, make good clauses and fit out contributions, how to cold call your way to a deal, and why customer service and follow up are the real difference makers in any industry.
They also swap stories about building businesses the hard way, why Australia is becoming increasingly difficult for entrepreneurs, and what Luke would do if he had $1 million to invest today.
Follow Hypotential:
Website: https://www.hypotential.com/
Instagram: https://www.instagram.com/hypotential_
Facebook: https://www.facebook.com/HypotentialCo
Follow Kane:
Instagram: https://www.instagram.com/kanetylersmith_/
Facebook: https://www.facebook.com/KaneTylerSmithWA
TikTok: https://www.tiktok.com/@kanetylersmith
Connect with Luke and Burgess Rawson:
LinkedIn: https://www.linkedin.com/in/luke-randazzo-77359b139/
Website: https://brwa.com.au/
In this episode
- 00:00Intro
- 01:08End of negative gearing for residential investors
- 02:51Why rents will go up as investors exit
- 04:47Commercial untouched by the new tax laws
- 06:08The 5% deposit scheme and housing supply
- 08:46Why no one talks about commercial earlier in life
- 11:42Rental yields, residential vs commercial compared
- 12:11Using super to buy commercial property
- 13:05Own occupiers buying their building through super
- 15:20Make good clauses and fit out costs explained
- 17:48Why office lease terms have shortened since Covid
- 21:17What happens if a business fails mid lease?
- 22:05Assigning, subleasing or surrendering a lease
- 26:30How Luke got into commercial real estate
- 27:37Why barriers to entry for agents are too low
- 33:11How to cold call neighbours after a sale
- 35:24How Kane bought three buildings by just asking
- 37:05Why customer service is the real difference maker
- 38:18Smartfix's follow up system and extra work it generates
- 39:16If you had $1 million to invest today
- 40:13Which commercial asset classes are performing best?
- 41:38Industrial vs retail vs office explained
- 49:17What Luke is seeing with business owners post budget
- 51:35Super, payroll tax and GST cash flow pain
- 52:22Is this climate encouraging young entrepreneurs?
- 56:33Best piece of advice Luke has ever received
- 01:01:23Stick to your niche
- 01:03:04Residential vs commercial, a different sale
- 01:05:57Where to find Luke and Burgess Rawson
- 01:06:29Wrap up
