CoreLogic reported that the total value of Australian property stands at an impressive $11 trillion, surpassing the combined worth of all listed companies on the Australian Stock Exchange by more than five times. Despite this staggering figure, financial advisors have typically concentrated their efforts on shares, bonds and superannuation, often treating property as an afterthought….
Some buyers’ agents promote investing in more affordable locations (i.e. outer suburbs). I can understand why some investors might be attracted to follow their advice. But it’s not until you delve into the theory and evidence that it becomes blatantly obvious that such investments have a high probability of underperforming. Here’s an example I saw…
I believe most people spend too much of their lives trying to reduce perceived financial risk. The opportunity cost of this approach is very high and puts lifestyle goals at risk. Too much focus on risk reduction Many people buy a home and then focus on repaying debt. They then upgrade their home and once…
If you are contemplating investing in property, should you buy now or wait? What if prices fall? Maybe you would be better off waiting? As my analysis below reveals, buying for less than market value or at the bottom of the market (i.e. buying well), has very little impact. The price we pay for a property…
In a blog I wrote back in late 2018, I introduced the term liveinvesting. It’s inspired by the concept of rentvesting, where you rent a home in your desired location while investing in property elsewhere. Considering that property prices in certain capital cities like Melbourne are currently more affordable relative to other locations, it’s a good time to…
Every asset class comes with its own set of advantages and disadvantages, and property investment is no exception. I often highlight the many benefits of investing in property and offer strategies to become a successful property investor. However, it’s equally crucial to recognise the downsides that come with property investment and think about how to…
Typically, you need a budget of circa $1.5 million to purchase an investment-grade house (investment property) in Melbourne, less in Brisbane, and a lot more than $1.5 million in Sydney. Of course, not everyone can afford this budget, so I wanted to discuss how to buy the highest quality property possible within your budget. This…
The very first article that I wrote for a magazine was published 21 years ago! No wonder I feel old. The article was called ‘Unlimited finance…’. My thesis was that investing in high-yield properties doesn’t magically extend ones borrowing capacity allowing them to invest a lot more. Some investors believe targeting high rental-yielding investment properties will…
The cost-of-living crisis has been well documented. It’s clear that prices for various goods and services have risen sharply over the past four years since the pandemic started. Firstly, if you’re spending more on day-to-day expenses, it’s likely you have less to put towards investments, especially if your income hasn’t increased much during this time….
I received a question from a reader asking what would make a superior investment. An apartment in a blue-chip location, or a house for the same price albeit not in a blue-chip suburb. Will houses always deliver better returns? In general, houses often prove to be superior investments, mainly due to their higher land value…
