[Podcast] Investor insights: your property questions answered, with Brett Warren

Today’s episode will be a bit different than usual.

Joining me today is Brett Warren, National Director of Metropole Properties, and we're dedicating this entire episode to answering your questions.

So, whether you're a seasoned investor or just starting on your property journey, stick around because we've got some great questions and even better answers coming up.

Let's jump right in!

Expert Q&A with Brett Warren

1. Why don't we recommend Perth for property investment despite its recent strong performance?

Perth's market is highly volatile due to its heavy reliance on the mining sector and a single customer, China. This volatility makes Perth a riskier investment than East Coast cities like Sydney, Melbourne, and Brisbane. Despite Perth's recent performance boom, the market's long-term stability is questionable, especially when East Coast buyers have inflated prices without thorough market knowledge.

2. Should I pay off my home loan before buying an investment property?

To answer that, it’s important to understand the concept of opportunity cost and highlight the benefits of leveraging funds for investment, particularly in growth markets like Brisbane. Growing an asset base can potentially offer greater financial security and wealth compared to solely focusing on paying down non-deductible debt.

3. What are your views on restricting foreign investing in Australia?

While the perception is that foreign buyers significantly affect the market, data suggests they only constitute about 5% of the total buying pool. Foreign developers have played a positive role in increasing the housing supply. They currently face challenges due to stricter regulations.

4. How do you remain positive when the media is full of negative messages?

We have to maintain a long-term perspective amidst media noise and market uncertainty. Robust financial planning, stress testing plans, and maintaining cash flow buffers can help you prepare for unforeseen events. Uncertainty is an inherent part of investing, and focusing on long-term fundamentals and quality assets can provide stability and growth over time.

Links and Resources:

Michael Yardney

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Brett Warren - National Director Metropole

Some of our favourite quotes from the show:

“I think you've got to wonder where the property market that you're buying in is going to be in three years, five years, ten years. Not what the interest rates are, what it's going to be in a year's time.” – Michael Yardney

“As you said, I don't think for a second Dutton is going to actually ban foreign buyers. He might make it harder for them. A while ago the various governments made it harder. They pulled out the welcome mats. It's interesting how things changed.” – Michael Yardney

“Interestingly, those who succeed in life do not think they're going to fail. They know it. They know their journey to success will be riddled with failures. It'll be messed up with mistakes. In short, they expect to fail. And when you expect to fail, all of a sudden, fear loses all its power over you.” – Michael Yardney

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