Property Buzz: The commercial property trap catching residential investors out

Commercial property can offer higher yields, but poor due diligence, risky leases, and long vacancies can turn an investment into a costly mistake.

On Property Buzz, Liam Garman and Phil Tarrant examine the risks facing residential investors moving into commercial property as Smart Property Investment launches a six-part guide to the sector, warning that commercial is not an easy next step.

The hosts discuss cases of poor advice, inadequate due diligence, and fake leases, highlighting the need for investors to understand the sector before committing their money.

Garman explains how higher yields can signal greater risk, with prolonged vacancies, complex lease terms, and unexpected repair bills eroding returns.

Tarrant raises concerns about investors buying commercial property through super funds without understanding the risks, while the pair stress the importance of financial buffers and experienced commercial specialists.