All investment asset classes move in cycles. Investment returns are almost never linear. As such, investors must expect good and bad periods, which is why patience and discipline are big contributors to an investor’s success. I suspect that commercial property investors’ patience and discipline are about to be tested. This asset class is facing a…
I was listening to Morgan Housel’s new podcast recently (which I highly recommend by the way), and he said something along the lines of “Once you define your investment philosophy, you won’t be distracted by any noise that doesn’t align with it.” It really resonated with me. Success with investing is more about avoiding mistakes…
Over the past 20 years, the US share market has risen 5-fold, the Australian share market 5.4-fold, and Australian property 4.2-fold. That means if you invested half a million dollars 20 years ago, in either shares or property, it should be worth between $2 and $2.5 million today. You’d have even more money if you…
The price you pay for an investment property will only matter if you purchase the wrong asset. An investment-grade asset will, in the long run, mask any purchase price errors that you may have made. That is why focusing on the quality of the asset is easily the most important thing you must do when investing in property. Simple…
Most people struggle with working out how to invest their money. Do they upgrade their home, contribute more into super, buy an investment property, invest in the share market, or something else? In fact, this common challenge was the reason that I decided to write my book, Investopoly. I knew that if people understood the…
There are three ways to generate passive income; start a business, invest or speculate. The keyword in that sentence is passive. Passive means you can generate economic benefits without the requirement of your personal exertion. Since it doesn’t require personal exertion, it frees up your time to spend it on activities or with the people…
Many people don’t like to save for the future because they think it’s painful. Saving means they have to do without. Conversely, spending today is fun and enjoyable. Buying a new gadget, a new pair of shoes, dinner at a fancy restaurant, some wine (well, I regard wine as more of an investment). These things…
I find it ironic that the two common financial mistakes that people make are not investing i.e., procrastination or doing too much i.e., turning over investments, changing their minds and so on. But, sometimes reacting, changing, tinkering, selling, buying and so on can be equally as bad. The truth is that investing requires a lot…
We are all aware that central banks around the world have been hiking interest rates to reduce inflation back to normal levels. The US economy, and particularly the labour market, have been more resilient than most expected. This means the US central bank might have to hike interest rates higher than in other jurisdictions to…
It has been very well reported that many mortgage holders will soon be paying much higher interest rates when their fixed rate terms expire. It is estimated that $478 billion worth of fixed-rate mortgages is due to expire in 2023. In addition, borrowers may also have to navigate the end of an interest-only term, which…
