In this Australian Property Podcast episode, your hosts Pete Wargent from Allen Wargent Property Buyers and Owen Rask from Rask Media discuss their respective journeys and whether it’s a good time to buy property or shares. They also look through a few case studies and how each cohort might like to invest in the current environment, be it in property, or shares, or both.
Here’s a summary of everything they discuss:
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Pros and cons of property and shares
Super is massive in Australia too
Buy a home and then what?
Maybe best to have a balance of all of the above?
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Let’s look at a few case studies
1 Accountant – maybe risk averse, sensitive to cashflow, often owns a home and would like to add one rental, and contribute to super, $1m budget typical for a professional buying a house as an investment
Different personality types
Analytical/thinker – good saver – risk averse – suited to shares
2 Doctor – often earn higher incomes, tolerance for some risk, they want high growth assets. Some healthcare professionals need trusts for asset protection e.g. surgeon, anaesthetist. Can scale a portfolio quickly, and can tolerate some negative cashflow
High income earner – achiever, goals focussed – tolerance for risk – may want to use leverage to build a property portfolio
3 Tradie – often have good skills and are decisive. Have skills to add value to properties and have a good eye for a deal. Some of the best investors are tradies. Good incomes very often and an entrepreneurial spirit
4 Entrepreneurs – difficulties with borrowing capacity, feast and famine. Hard to know whether to invest in self, business, or property and shares. Property is good for people who find it hard to save and invest regularly, after the initial up-front costs. Shares require some savings discipline. Borrowing capacity tends to come and go so need to be strategic and invest when you can
Entrepreneur – freedom focussed – with lumpy income? It depends. Property debt can be a noose, but can also be forced discipline. Shares are more liquid and could be sold quickly in a crisis.
Prof Scott Galloway. Credentialled – degree – stock options. Equity. Bonuses.
“Build business and buy real estate” – Kiyosaki
Our kids – University or not?
Some thoughts on our respective journeys
Listener questions – send them in
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