The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 458: Should Investors Buy a Home or Keep Building the Portfolio?

Steve Palise spent a decade telling people not to buy the home they live in. Then he bought one himself. So what changed? In this episode, Steve joins Veronica and Chris to unpack the tension between buying a home as an investment, financial optimisation and the security, lifestyle and freedom that come with home ownership.

The conversation explores the question many investors wrestle with: property investment vs home ownership. Steve explains why the decision isn't always purely financial, and how priorities can change as your life, family and circumstances evolve. For investors thinking about how to build a property portfolio in Australia, that distinction matters.

Steve then turns to commercial property investment, where growing investor demand is meeting a market with fewer available properties and significantly more complexity. The question “Is commercial property better than residential property?” doesn't have a simple answer.

From lease reviews and tenant interviews to vacancy studies, traffic analysis and maintenance contracts, commercial property due diligence can be far more involved. Steve explains why chasing a high yield can be dangerous if you overlook the quality of the tenant, location or underlying land.

We also explore industrial property investment, land value and scarcity, and why Steve would rather own a tightly held asset with a lower yield than chase higher returns in a high-vacancy market. For investors focused on building a property portfolio, this conversation offers a more nuanced look at the trade-offs between residential and commercial property — and the risks that can sit behind an apparently attractive deal.

Episode Highlights

03:12 — Steve Palise Changed His Mind About Buying a Home

07:42 — The Opportunity Cost of Owning Your Home

12:43 — Why Investors Are Rushing Into Commercial Property

17:24 — Too Many Buyers, Not Enough Commercial Property

22:35 — The Commercial Property Mistakes Investors Miss

27:41 — Why Land and Scarcity Matter in Commercial Property

32:38 — What’s the Best Price Point for Commercial Property?

34:06 — When Commercial Property Risk Really Comes From

37:47 — The Vacancy Lessons Steve Learned the Hard Way

42:38 — The Commercial Buyers Agent Boom Has a Catch

49:28 — Should You Buy a Home Before Building a Portfolio?

About the Guest

Steve Palise is a commercial buyers agent and property investor who has spent almost two decades investing in property, beginning with a residential portfolio before shifting into commercial property. He spent six years working as a buyers agent with Rethink Investing before establishing his own business.

Steve now leads a commercial property acquisition team with six acquisition staff across the capital cities, alongside a due diligence team that includes an experienced commercial property manager and three qualified commercial valuers. His approach focuses heavily on tenant quality, vacancy rates, location, land component and the long-term fundamentals of commercial assets.

Having experienced the transition from residential investing to commercial property firsthand — and more recently changing his own view on home ownership — Steve brings a practical perspective on both the financial and personal decisions behind property investment.

Connect with Steve

Resources:

Visit our website: https://www.theelephantintheroom.com.au

Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now!

Chris Bates