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Dear investor,

Is it just me? Or is property defying interest rate gravity right now?

According to Property Update, Australian property prices are up 7.1% this year.

So much for those commentators in the AFR who were calling for 20%+ declines…

Turning to shares, the same can’t be said for our wonderful ASX shares.

The S&P/ASX 200 (INDEXASX: XJO) is down 2.1% (not including dividends) so far this year.

So what’s going on? Why is property riding high?

Or, more importantly, what should you be doing about it?

This Wednesday, at 12 noon (Eastern time), I’ll be joined by Chris Bates, founder of Blusk and Australia’s #1 mortgage broker, as voted by The Adviser. I’ll put Chris to the test LIVE, with your questions.

My plan for Wednesday’s live show is for Chris and I to get to the bottom of:

  1. Why property has gone up, despite rate rises – can it continue?
  2. The most likely move for interest rates over the next year – is it time to lock in your mortgage rate?
  3. Where can we shop to get a better rate on our mortgages right now
  4. Why, when and how to blend shares and property together
  5. How to use a line of credit to buy dividend-paying shares/ETFs

(Full disclosure: Chris is my mortgage broker, and has been for years… I just lucked out picking the fella who would later become #1!)

My view on property versus shares

In finance, we love forcing people into false choices. Growth or value. Retiree or accumulator. Trader or investor. Property or shares.

The reality: you can do all of them, if you want to.

For example, I’m a stocks/business guy. But I think property is a great vehicle for wealth creation, if it’s done wisely.

Especially if you’re earlier in your journey (say, under 50), the leverage on offer with property is unique and powerful.

For example, if I had ambitions to retire early I would be using property as my primary wealth creation engine, alongside some ETFs and shares.

Providing I knew how to identify high quality properties, I would use a ‘less is more’ strategy and pursue long-term properties in blue chip neighbourhoods.

While I say this, I also believe shares will provide better income and growth over the ultra-long run. So, while I would use property to provide leverage and exposure to an attractive asset class, I would seek to ‘deleverage’ that portfolio before I planned to retire, parking the capital in shares, which are cash flow positive, liquid and offer franking credits. I especially like ETFs that pay franking credits.

In short, leverage (sensibly) into property, exit into shares for the long run.

Just as the little girl in the TV ad for tacos says, ‘why not have both?’

Wednesday at 12 noon on YouTube, join Australia’s #1 mortgage broker and me, as we dive into the shares v property debate. CLICK HERE TO WATCH IT.

All you have to do is arrive at this YouTube link at 12 noon on Wednesday (or watch it back on replay).

As always, we’ll be going live for Rask LIVE, brought to you by Selfwealth.

The stream will kick off shortly after 12 pm, Australian eastern time.

See you soon!

Subscribe to YouTube (for alerts)

Join the session (12 noon Wednesday)

Owen Rask

Chief Investment Officer, Rask Invest
Founder of Rask

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author or their clients may have a financial interest in some of companies or securities mentioned.
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