Steve Palise sits down with Liam Carmody to break down the pros and cons of buying property through a self-managed super fund. They cover how SMSFs actually work from setup through to purchase, what finance looks like inside super, the differences between buying residential vs commercial, and why so many investors are shifting toward commercial property in their SMSFs right now. Liam also shares his own SMSF investment story, including what he bought, where, what it's worth now, and his plan to turn a $260K super balance into a serious portfolio through strategic buy-sell-upgrade cycles.

What We Cover

• How SMSFs actually work (and what they cost)
• Obtaining finance inside an SMSF
• Why commercial is overtaking residential in SMSFs
• The tax stuff (not financial advice)
• The contract and bare trust setup
• Don't sacrifice property quality for a tax saving

Key Takeaways

• Your super fund is another bucket of money that's not yours right now anyway. The question is whether you're maximising it while you've got the time.
• Most people overestimate what they can do in the short term but vastly underestimate what they can do in the long term.
• You don't need to find a unicorn. The stuff that was yielding 6% at the time hasn't performed the way his "boring" 5% net yield asset has.
• If you're buying residential in super, have a clear exit plan. At some point it's never going to give you cash flow, so you'll have to sell it in retirement anyway.

SMSF Disclaimer: The information provided in this video is for educational and informational purposes only and does not constitute financial, investment, legal, or taxation advice. Self-Managed Super Funds (SMSFs) are complex financial structures subject to strict Australian Tax Office (ATO) regulations, compliance obligations, and eligibility requirements. Any strategies or information discussed should not be acted upon without first seeking independent advice from a licensed financial adviser, registered tax agent, accountant, and/or legal professional who can assess your individual circumstances. Past performance is not indicative of future results. The hosts and contributors of this content are not responsible for any financial decisions made based on the information presented. Always conduct your own due diligence before making any investment decisions.

HOSTED BY:
Steve Palise
Ph: 0403 878 497
Email: steve@paliseproperty.com

LinkedIn: https://au.linkedin.com/in/steve-palise

CONNECT WITH LIAM

Liam Carmody

Email: liam@paliseproperty,com

LinkedIn: https://www.linkedin.com/in/liam-carmody-06b10172/

Resources

Get FREE access to the Commercial Property Institute course - CLICK HERE

Get FREE access to the Residential Property Institute course - CLICK HERE

Get your FREE copy of Commercial Property Investing Explained Simply - Use discount code PODCAST CLICK HERE

Get your FREE Commercial Property Paydown Calculator CLICK HERE

Follow Palise Property on FACEBOOK for Free Tips Tricks & Insights CLICK HERE

In this episode of Property Investing Explained, Steve sits down with Terry James, a Brisbane business owner and first-time commercial investor, to unpack the strategy behind securing a $4.65 million industrial asset with significant built-in upside. What began as a frustrating experience with another buyer’s agent ultimately led to a carefully selected property in one of Perth’s most tightly held industrial precincts.

Terry has spent two decades building a successful commercial plumbing business in Brisbane after a pivotal redundancy in his late twenties pushed him into entrepreneurship. Over the years, he accumulated shares and residential property, gradually refining his investment philosophy. As he began thinking more seriously about long-term income and eventual retirement on the Gold Coast, commercial property emerged as a logical replacement for business cash flow. The transition, however, required clarity, patience and a willingness to ignore noise.

The property Terry ultimately secured is a dual-tenanted industrial asset in Maddington, Perth, positioned on approximately 1,000 square metres of land with two tilt-panel warehouses and established operators in place. What stood out was not the headline yield, but the mispriced lease. With one tenant significantly under market rent, the deal offered immediate equity creation through a structured rental uplift. For investors concerned that “all the good deals are gone”, this conversation demonstrates how disciplined underwriting and market knowledge still uncover opportunity.

This episode covers:

• Why under-rented industrial assets can create immediate equity without relying on speculation
• The importance of lease rate benchmarking within tightly held precincts
• How a 30% rental uplift was negotiated through a market review
• Why tenant quality and location often matter more than chasing a higher yield
• The lending realities of lower-yield assets and how LVR shifts at sub-6% yields
• The strategic case for buying one larger commercial asset instead of multiple smaller ones
• How commercial property can replace business income in a structured retirement plan
• Why patience and disciplined deal filtering lead to better long-term outcomes

Following the settlement, Terry successfully negotiated a new five-year lease with a 30% rental increase for one tenant, lifting annual income from approximately $271,000 to over $314,000. With CPI growth and future reviews, projections indicate the property could generate close to $460,000 per annum within a decade, with debt substantially reduced or cleared.

For Terry, this is not about endless scaling. It is about replacing active income with reliable, compounding passive cash flow.

This episode is particularly relevant for business owners, high-income professionals and experienced investors considering their first substantial commercial acquisition. It offers a grounded look at risk management, capital allocation and the discipline required to secure quality assets in competitive markets. Listeners will walk away with a clearer understanding of how to identify mispriced leases, structure long-term income, and build commercial exposure with intention rather than haste.

Get FREE access to the Commercial Property Institute course - CLICK HERE

Get FREE access to the Residential Property Institute course - CLICK HERE

Get your FREE copy of Commercial Property Investing Explained Simply - Use discount code PODCAST CLICK HERE

Get your FREE Commercial Property Paydown Calculator CLIC

In this episode of Commercial Property Investing Explained, Steve Palise sits down with anaesthetist, academic, and investor Alwin Chuan to unpack how he went from being almost entirely invested in shares to building a diversified residential and commercial property portfolio that is now positively geared and largely self-sustaining.

The conversation traces Alwin’s journey from humble beginnings as a first-generation migrant in Sydney’s west, through decades in medicine, to making some of his biggest investment decisions during periods of uncertainty like the GFC and post-COVID markets.

Alwin shares why residential property alone was not enough to meet his long term goals, what attracted him to commercial property, and how yield, lease structure, and tenant quality became critical as retirement moved from a distant idea to a real planning horizon.

This episode covers:

• Alwin’s early exposure to investing through shares and how that shaped his risk mindset
• Why he bought property during downturns and how those decisions paid off long term
• The key differences between residential and commercial property, including yield, risk, and tenant relationships
• How Alwin transitioned from almost 100% shares to a multi-asset portfolio
• Why positive cash flow changed how he thinks about investing, stress, and retirement
• The commercial properties he owns today, including medical and industrial assets, with zero day vacancy
• Why the property manager is, in his view, the most important person in a property portfolio
• How Alwin thinks about retirement optionality, semi-retirement, and intergenerational wealth

Whether you are a medical professional, a residential investor considering commercial property, or someone thinking seriously about building income streams that support long-term flexibility, this episode offers grounded insights from someone who has lived through multiple market cycles and made deliberate, patient decisions along the way.

Get FREE access to the Commercial Property Institute course - CLICK HERE

Get FREE access to the Residential Property Institute course - CLICK HERE

Get your FREE copy of Commercial Property Investing Explained Simply - Use discount code PODCAST CLICK HERE

Get your FREE Commercial Property Paydown Calculator CLICK HERE

Follow Palise Property on FACEBOOK for Free Tips Tricks & Insights CLICK HERE

HOSTED BY:
Steve Palise
Ph: 0403 878 497
Email: steve@paliseproperty.com

LinkedIn: https://au.linkedin.com/in/steve-palise

CONNECT WITH Alwin Chuan

LinkedIn: https://www.linkedin.com/in/alwin-chuan-phd-fanzca-094880288/