Property remains the ultimate wealth vehicle in 2025 despite media fear, with fundamentals that continue to outperform most asset classes over the long term. Oscar explains how investors can position themselves to take advantage of current market conditions, especially as interest rates begin to drop.
• Leverage allows borrowing up to 90% of property value, making your money work harder
• Tax benefits include depreciation, negative gearing, and capital gains discounts that significantly reduce tax bills
• Scarcity and population growth create long-term value as demand increases while land remains limited
• Record-low vacancy rates in cities like Perth and Brisbane are creating upward pressure on rents and yield
• Growth corridors where $600k still gets a high-yield house offer better value than inner-city areas
• Value-add strategies like renovations, subdivisions, and granny flats can boost returns significantly
• Using equity from existing properties is the number one way to build a substantial portfolio
• Avoid buying with emotion, chasing investment fads, ignoring the numbers, and analysis paralysis
• The best time to invest is as soon as you can afford it—waiting for "perfect" conditions often means missing growth
Hit the subscribe button, leave us a review, or reach out via Instagram, TikTok, or through our website at assetroad.com.au. We're here to help you make confident, strategic moves in the property game.
DISCLAIMER:
The information in this podcast is general in nature and does not constitute personal financial advice. It does not take into account your individual objectives, financial situation, or needs. Always consider whether the information is appropriate for you and seek advice from a qualified professional before making financial decisions.
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Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar, but before we get into it
, please note that nothing inthis podcast should ever be
considered as personal financialadvice.
Of course, if that is what youare seeking, reach out and we'll
get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:22):
Let's get into it.
Welcome back to the FinanceBible Podcast.
Today you're joined with Oscarand I'm going to be talking
(00:46):
about why property is still theultimate wealth vehicle in 2025,
and, most importantly, how youcan position yourself to take
advantage of it.
So, whether you're a first-timeinvestor or someone sitting on
equity or literally just curiousabout property, this episode
will give you a few tips andalso will be the episode for you
.
So it's a short, sharp, butsomething which is so important
(01:07):
today, with what's happening inthe world and the interest rates
coming down, et cetera.
So tune in and hope you enjoyit.
Why is property still king?
Let's start with thefundamentals.
Despite the media, these days,if you turn on the TV, there's
all fear.
There's the news outlets sayingyou know the housing crisis,
property price is about to crash, it's too expensive to get into
(01:28):
the property market itself.
But you know, property hasoutperformed most asset classes
over the long term.
Even with all the fear that'sbeen going on, no one really
looks at the statistics.
The question is, why and howhas property outformed most
asset classes?
So, number one, you've gotleverage.
So the use of actuallyborrowing debt from banks
(01:51):
generally good debt when you'reborrowing money to purchase an
asset.
So, unlike stocks, withproperty you can actually borrow
up to 90% of a property's value.
Yes, if you do borrow over 80%,you're more likely to pay LMI.
The scheme of things, itdoesn't really matter as long as
you purchase a high growthasset which will outperform the
(02:14):
LMI that you pay over time,which, look, let's be honest,
there's a very high possibilitythat will happen.
This means your money worksharder for you and you know the
good old saying make money whileyou sleep.
This is literally making moneywhile you sleep Capital growth
of your asset building valueevery single second, every
single minute, every single hour.
The next reason is tax benefits.
(02:34):
So, with property, you getdepreciation.
If your property's negativegeared, you get negative gearing
benefits and also capital gaindiscounts.
These exist for a reason andthey can significantly reduce
your tax bill.
So we see clients who arearound a $250,000 income per
year and the number one issuethey have is the amount of tax
(02:56):
they're paying.
So with property and investingin property, their taxable
income reduces dramatically,especially if they've just
bought a brand new property,because with depreciation you
can claim up to 40 years worthof depreciation on a brand new
property.
If it's 20 years old, theproperty you get 20 years worth,
and so on so on.
(03:17):
But tax benefits is a realindicator and a real reason why
property is still king.
Thirdly, scarcity and populationgrowth.
So Australia's population keepsclimbing, especially in
affordable growth corridors.
And the funny thing is aboutthis you've got all the land in
Australia, but land iseventually going to run out.
It is limited.
So if you're sitting on thefence and trying to figure out
(03:40):
if you want to buy this block ofland in an area, let's say
Melbourne or Sydney, for example, which is very rare, especially
in Sydney just pull back andlook from it from a bird's eye
view and realize that land islimited, like I just said, but
demand is not.
So while Australia's populationkeeps climbing, there'll be
more individuals wanting to buyproperty in Australia, but
(04:02):
because land is limited, therewon't be as much property for
them to buy, so prices willgenerally increase over time, no
matter what.
Because of this, and if you'retoo late in areas that you want
to buy or you think are growthcorridors for your investing,
it's too late and you've missedout on a lot of money in terms
of capital growth.
One of the other reasons isrental demand.
(04:24):
So you look at cities likePerth and Brisbane at the moment
probably in the last five yearsand also regional hubs around
those areas.
Vacancy rates are at recordlows.
So that's upward pressure onrents and yield, which is
literally a massive indicatorand a big reason why property is
still king.
Bottom line is fundamentals ofproperty haven't changed.
(04:46):
The only thing that has changedis the strategy that's required
to win.
Next bit I want to talk about iswhat's working this year in
2025.
If you're listening to this, in2026, how many years time?
This is for 12 months before.
But let's talk about what'sworking for smart investors
right now.
Number one we got buying andgrowth corridors.
(05:07):
So there's a lot of talk aboutindividuals purchasing growth
corridors.
These are markets where 600kstill get you a high yield house
.
If you look in Sydney orMelbourne at the moment, close
to the actual CBD you aredreaming.
There is no chance you can lookat getting something similar or
close to that price point,especially with a high yielding
(05:29):
return.
That's literally impossible.
But we're talking about outersuburbs of Brisbane, perth,
adelaide, for example, just inareas where there's a lot of
infrastructure spend, job growth, internal migration and
affordability.
Second odd we've got value-addstrategies.
So this one here in 2025, youdon't want to just buy and wait.
(05:51):
You want to look at renovation,subdivisions or even just add a
granny flat.
There's a lot of properties outthere where you can get, you
know, 500, 600 meter squareblock for the potential down the
track to put a granny flat on.
It's all fine to you know, buyit now and wait five, 10 years,
but you kind of want to have aplan.
(06:11):
When you purchase a property,do you subdivide it in 10 years?
Do you knock it down straightaway?
Do you add 30 grand ofrenovations to it, or do you put
a granny flat on straight away?
In some states and in locationswhere you've purchased, and if
it's done correctly, close togreat locations, this can
literally boost your rent by upto $300 per week.
(06:32):
So before you purchase orbefore you look to purchase,
have a think about what youroverall strategy is that you
want to do.
Do you have the time that youcan do this, or do you want to
engage in a professional serviceto help you with this?
Or do you want to actually justbuy and wait?
Because you can, but there'salso more money to be made if
(06:52):
you want to take a leap and domore things to your asset.
Another example is using equityto build a portfolio.
If you've listened to thispodcast before, you know all
about using your equity to builda portfolio and borrow more
debt to keep going and acquiringmore assets.
But if you own a home or havean existing investment, you may
(07:14):
be sitting on hundreds ofthousands in untapped equity.
If you don't know if you haveequity, or if you don't stop the
episode, look at your property,get a valuation done, see the
amount of debt you have, figureout how much equity you have,
because this is one of the mainreasons well, probably, in my
mind, the number one reason andthe number one way for people to
(07:36):
build wealth over time andretire financially free with the
equity they have and justcontinue to recycle and build
wealth after that, propertyafter property, check it out and
use it strategically.
And you've got to remember,with investing, not emotionally,
you don't want to have anyemotional attachment to it,
because if you're emotionalabout an investment, you're not
(07:57):
going to purchase the rightplace, you're not going to get
the right result that you wantand ultimately it's not going to
grow as much as a strategicpurchase that you could have got
somewhere completely different.
So this is where professionalservices come into play, because
they can pull the emotion outof it, so they can just come to
you and say these are thenumbers, this is what works, as
(08:18):
opposed to you being a bit.
You know, I love that houseover there, I really want it,
even though the numbers you know, giving you a 3% yield as
opposed to a 6% yield.
For example, one of the lastones here that I've written down
is build to rent and duplexes.
So in the past probably thelast 24 months as well higher
build costs have scared a lot ofinvestors off.
(08:38):
But for those who can purchaseit and service, dual income
strategies are creating amazingcashflow, especially for a lot
of our clients who can purchasein that price point.
You're picking up a dualoccupancy for around 850, 900k,
renting for 11, 1200 a week.
(09:00):
Yeah, they can create amazingcashflow and the yield for those
as well, sometimes over 6% to7% gross, which is really solid
in terms of an actual rentalyield.
So, if you can afford it,definitely speak to someone who
can give you some moreinformation on it.
As this podcast is general innature, a lot of different
(09:20):
places like duplexes, co-livinghouses, ndis if you can afford
it, great opportunities for thathigher cashflow.
The next part of the podcast arefour mistakes to actually avoid
when it comes to property,because I just want to be real
with you for a second.
There are a lot of people outthere who promise the world with
all these different types ofinvestments, but they don't
(09:41):
really talk about what to avoidand what to look out for.
So there's four main reasonswhere most investors mess up.
Number one I just touched on itliterally a minute ago is
buying with emotion.
So when you're investing inproperty, you got to remember
(10:02):
this isn't your forever home, oreven your home.
You may want to live in it downthe track or you might want to
relocate if you buy aninterstate, but you have to
remember it is an investment.
At the end of the day.
It's literally a vehicle forwealth.
You have to treat it like abusiness and nothing more.
Secondly, don't chase fads.
So there's a lot of TikTokinvestors who push crypto mining
(10:23):
granny flats.
You're probably thinking whaton earth are they?
Well, there's a lot of peoplewho see these random videos
online and just because it's alittle fad or people are
promising, you can make so muchmoney on it and it's the next
best thing to get rich quick.
Most of the time, it's probablytoo good to be true.
So I would just stick totimeless principles.
I would stick to propertyitself as a wealth creation tool
(10:47):
.
You can see it over the lasthundred years.
If you look at it on a graphand you zoom out, it's always
got an upward trajectory.
Yes, there may be some drops insome areas every year, but
pending where you grow and whereyou purchase, you can if done
correctly, you can come out onthe other side very well.
Number three, ignoring thenumbers.
(11:08):
If the deal doesn't stack uptoday in terms of your cashflow
and the amount of money you havefor the deal, you don't want to
rely on the potential of the.
So let's say, for example, ifyou bought an investment
property today and you had toput in $300 per week to cover
the mortgage repayments.
(11:28):
But you think that the overallcapital growth of the property
in 5, 10 years will outweigh theamount that you're putting in
per week.
Well, you may be right, but youalso may be wrong.
If you can't afford to take therisk or to not know if it will
pay off, then don't do it at all.
(11:49):
You can't ignore the numbers.
If you're going to actuallyinvest in property and put money
in yourself, you don't want toactually ruin your own
day-to-day life in terms of yourspending and limit yourselves
to what you want to do.
So make sure you look at thenumbers and actually figure out
if you can afford it.
If it is negative per week, ordon't just rely on the capital
(12:11):
growth because you don't know itanything can happen.
Lastly, analysis paralysis.
So this is a classic waitingfor the perfect time to buy.
Let's wait next month until therates drop again.
Oh no, actually we'll wait tillNovember for another rate drop.
The question is if you waittill November, you could have
already missed out on $60,000,$70,000, $80,000 of capital
(12:33):
growth and capital gains thatyou would have purchased right
now.
So there's never a perfect timeto invest or to buy.
It doesn't exist.
The right time is to get in assoon as you possibly can, so
that might be as soon as youhave a certain amount of savings
saved up.
Let's say you're wanting to hit$80,000 in terms of savings to
(12:53):
purchase a property as soon asyou hit 80, I would be jumping
straight in.
Whatever you can buy, get yourfoot in the door because if done
correctly and you build equity,then you keep going and you go
again because if done correctlyand you build equity, then you
keep going and you go again.
The hardest bit is getting inat the first, and especially in
today's day and age.
In Australia, with the ratesstarting to drop even more,
we've seen in the past, whenrates drop, property prices
(13:16):
generally tend to increase.
So if you're waiting foranother rate drop, well, you're
probably going to be priced outif you've got a limited budget.
So if you can afford to do it,get in before you're priced out.
There's no perfect time to buyNow.
To finish off, if these pointshave fired you up and you're
(13:37):
wondering what to do next,here's three steps you can take
today.
So the main one if you'resitting on the sidelines and
you've been thinking for a whilewhat can I do?
I want to get involved.
Assess your borrowing power.
So, if you have a mortgagebroker, speak to your mortgage
broker.
Ask them to tell you what youcan do before you get
(13:57):
emotionally invested in aproperty.
What I mean by that is figureout what is your borrowing
capacity.
If it's 800k, what options canyou look at?
And if you can borrow 800K, orif you're wanting to actually
invest and you can afford whatyou're wanting to look at, then
it's time to build your strategy.
So the number one question weget and we ask clients is what
(14:20):
is your strategy?
Are you aiming for capitalgrowth?
Like how old are you?
Are you in your 20s or 30s?
Do you aiming for capitalgrowth?
Like how old are you?
Are you in your twenties orthirties?
You want growth over time?
Do you want cashflow or do youwant the best of both worlds and
have both of them, which isideal.
But your goals dictate yourmarket and your actual property
type, because there'sindividuals out there who solely
want cashflow for theirinvestment property, and that's
(14:42):
fine, because that's where theythey're at in their life and
that's what they want to achieve.
Where there's other ones, whoare generally the younger
individuals who want the capitalgrowth because they've got 30,
40 years to retirement.
So it fully changes and it'sall different.
Number three get support.
So, whether it's a personalmentor, investment property
(15:03):
advisor like the team at AssetRoad, or an actual real estate
agent who will find you aproperty that they're already
selling, get help.
Don't go and do it alone.
It's a lot easier when you'vegot someone actually helping you
in your corner.
I hate to say it, though.
There are some people out therewho say they help you but
they're not in your bestinterest.
(15:24):
But you've just got to figurethem out and avoid them at all
costs, because there's alwayspeople out there like that.
But if you speak to the rightpeople, talk around town, have a
chat to all different companies, but definitely get support,
because that's the mostimportant thing.
The best investors don't alwaysknow the most.
They just take consistentaction with the right team
(15:46):
behind them, because without theright team you don't know
anything, and right now, a lotof individuals are time poor
professionals, so you don't evenhave the time to do the
investigating and looking at theproperties Because you're
working nine to five at least.
Nine to six, nine to seven, gethome and all of a sudden it's
(16:08):
10 o'clock, you're going to bed,so that's why you need to get
support.
But that's it for today'sepisode.
If this has got your wheelsturning, hit the subscribe
button, leave us a review or,better yet, reach out to us via
our Instagram, our TikTok, or toshoot us an inquiry on
assetroadcomau.
We're here to help you makeconfident, strategic moves in
(16:31):
the property game.
But until next time, I'll seeyou then.
Ciao, we hope you enjoyed theepisode.
As always, you know exactlywhat to do.
Hit that follow button,subscribe whatever platform you
listen to this podcast on.
(16:53):
Also, share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately it's the endand we'll see you next week.
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar, but before we get into it
, please note that nothing inthis podcast should ever be
considered as personal financialadvice.
Of course, if that is what youare seeking, reach out and we'll
get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:22):
Let's get into it.
Welcome back to the FinanceBible Podcast.
Today you're joined with Oscarand I'm going to be talking
(00:46):
about why property is still theultimate wealth vehicle in 2025,
and, most importantly, how youcan position yourself to take
advantage of it.
So, whether you're a first-timeinvestor or someone sitting on
equity or literally just curiousabout property, this episode
will give you a few tips andalso will be the episode for you
.
So it's a short, sharp, butsomething which is so important
(01:07):
today, with what's happening inthe world and the interest rates
coming down, et cetera.
So tune in and hope you enjoyit.
Why is property still king?
Let's start with thefundamentals.
Despite the media, these days,if you turn on the TV, there's
all fear.
There's the news outlets sayingyou know the housing crisis,
property price is about to crash, it's too expensive to get into
(01:28):
the property market itself.
But you know, property hasoutperformed most asset classes
over the long term.
Even with all the fear that'sbeen going on, no one really
looks at the statistics.
The question is, why and howhas property outformed most
asset classes?
So, number one, you've gotleverage.
So the use of actuallyborrowing debt from banks
(01:51):
generally good debt when you'reborrowing money to purchase an
asset.
So, unlike stocks, withproperty you can actually borrow
up to 90% of a property's value.
Yes, if you do borrow over 80%,you're more likely to pay LMI.
The scheme of things, itdoesn't really matter as long as
you purchase a high growthasset which will outperform the
(02:14):
LMI that you pay over time,which, look, let's be honest,
there's a very high possibilitythat will happen.
This means your money worksharder for you and you know the
good old saying make money whileyou sleep.
This is literally making moneywhile you sleep Capital growth
of your asset building valueevery single second, every
single minute, every single hour.
The next reason is tax benefits.
(02:34):
So, with property, you getdepreciation.
If your property's negativegeared, you get negative gearing
benefits and also capital gaindiscounts.
These exist for a reason andthey can significantly reduce
your tax bill.
So we see clients who arearound a $250,000 income per
year and the number one issuethey have is the amount of tax
(02:56):
they're paying.
So with property and investingin property, their taxable
income reduces dramatically,especially if they've just
bought a brand new property,because with depreciation you
can claim up to 40 years worthof depreciation on a brand new
property.
If it's 20 years old, theproperty you get 20 years worth,
and so on so on.
(03:17):
But tax benefits is a realindicator and a real reason why
property is still king.
Thirdly, scarcity and populationgrowth.
So Australia's population keepsclimbing, especially in
affordable growth corridors.
And the funny thing is aboutthis you've got all the land in
Australia, but land iseventually going to run out.
It is limited.
So if you're sitting on thefence and trying to figure out
(03:40):
if you want to buy this block ofland in an area, let's say
Melbourne or Sydney, for example, which is very rare, especially
in Sydney just pull back andlook from it from a bird's eye
view and realize that land islimited, like I just said, but
demand is not.
So while Australia's populationkeeps climbing, there'll be
more individuals wanting to buyproperty in Australia, but
(04:02):
because land is limited, therewon't be as much property for
them to buy, so prices willgenerally increase over time, no
matter what.
Because of this, and if you'retoo late in areas that you want
to buy or you think are growthcorridors for your investing,
it's too late and you've missedout on a lot of money in terms
of capital growth.
One of the other reasons isrental demand.
(04:24):
So you look at cities likePerth and Brisbane at the moment
probably in the last five yearsand also regional hubs around
those areas.
Vacancy rates are at recordlows.
So that's upward pressure onrents and yield, which is
literally a massive indicatorand a big reason why property is
still king.
Bottom line is fundamentals ofproperty haven't changed.
(04:46):
The only thing that has changedis the strategy that's required
to win.
Next bit I want to talk about iswhat's working this year in
2025.
If you're listening to this, in2026, how many years time?
This is for 12 months before.
But let's talk about what'sworking for smart investors
right now.
Number one we got buying andgrowth corridors.
(05:07):
So there's a lot of talk aboutindividuals purchasing growth
corridors.
These are markets where 600kstill get you a high yield house
.
If you look in Sydney orMelbourne at the moment, close
to the actual CBD you aredreaming.
There is no chance you can lookat getting something similar or
close to that price point,especially with a high yielding
(05:29):
return.
That's literally impossible.
But we're talking about outersuburbs of Brisbane, perth,
adelaide, for example, just inareas where there's a lot of
infrastructure spend, job growth, internal migration and
affordability.
Second odd we've got value-addstrategies.
So this one here in 2025, youdon't want to just buy and wait.
(05:51):
You want to look at renovation,subdivisions or even just add a
granny flat.
There's a lot of properties outthere where you can get, you
know, 500, 600 meter squareblock for the potential down the
track to put a granny flat on.
It's all fine to you know, buyit now and wait five, 10 years,
but you kind of want to have aplan.
(06:11):
When you purchase a property,do you subdivide it in 10 years?
Do you knock it down straightaway?
Do you add 30 grand ofrenovations to it, or do you put
a granny flat on straight away?
In some states and in locationswhere you've purchased, and if
it's done correctly, close togreat locations, this can
literally boost your rent by upto $300 per week.
(06:32):
So before you purchase orbefore you look to purchase,
have a think about what youroverall strategy is that you
want to do.
Do you have the time that youcan do this, or do you want to
engage in a professional serviceto help you with this?
Or do you want to actually justbuy and wait?
Because you can, but there'salso more money to be made if
(06:52):
you want to take a leap and domore things to your asset.
Another example is using equityto build a portfolio.
If you've listened to thispodcast before, you know all
about using your equity to builda portfolio and borrow more
debt to keep going and acquiringmore assets.
But if you own a home or havean existing investment, you may
(07:14):
be sitting on hundreds ofthousands in untapped equity.
If you don't know if you haveequity, or if you don't stop the
episode, look at your property,get a valuation done, see the
amount of debt you have, figureout how much equity you have,
because this is one of the mainreasons well, probably, in my
mind, the number one reason andthe number one way for people to
(07:36):
build wealth over time andretire financially free with the
equity they have and justcontinue to recycle and build
wealth after that, propertyafter property, check it out and
use it strategically.
And you've got to remember,with investing, not emotionally,
you don't want to have anyemotional attachment to it,
because if you're emotionalabout an investment, you're not
(07:57):
going to purchase the rightplace, you're not going to get
the right result that you wantand ultimately it's not going to
grow as much as a strategicpurchase that you could have got
somewhere completely different.
So this is where professionalservices come into play, because
they can pull the emotion outof it, so they can just come to
you and say these are thenumbers, this is what works, as
(08:18):
opposed to you being a bit.
You know, I love that houseover there, I really want it,
even though the numbers you know, giving you a 3% yield as
opposed to a 6% yield.
For example, one of the lastones here that I've written down
is build to rent and duplexes.
So in the past probably thelast 24 months as well higher
build costs have scared a lot ofinvestors off.
(08:38):
But for those who can purchaseit and service, dual income
strategies are creating amazingcashflow, especially for a lot
of our clients who can purchasein that price point.
You're picking up a dualoccupancy for around 850, 900k,
renting for 11, 1200 a week.
(09:00):
Yeah, they can create amazingcashflow and the yield for those
as well, sometimes over 6% to7% gross, which is really solid
in terms of an actual rentalyield.
So, if you can afford it,definitely speak to someone who
can give you some moreinformation on it.
As this podcast is general innature, a lot of different
(09:20):
places like duplexes, co-livinghouses, ndis if you can afford
it, great opportunities for thathigher cashflow.
The next part of the podcast arefour mistakes to actually avoid
when it comes to property,because I just want to be real
with you for a second.
There are a lot of people outthere who promise the world with
all these different types ofinvestments, but they don't
(09:41):
really talk about what to avoidand what to look out for.
So there's four main reasonswhere most investors mess up.
Number one I just touched on itliterally a minute ago is
buying with emotion.
So when you're investing inproperty, you got to remember
(10:02):
this isn't your forever home, oreven your home.
You may want to live in it downthe track or you might want to
relocate if you buy aninterstate, but you have to
remember it is an investment.
At the end of the day.
It's literally a vehicle forwealth.
You have to treat it like abusiness and nothing more.
Secondly, don't chase fads.
So there's a lot of TikTokinvestors who push crypto mining
(10:23):
granny flats.
You're probably thinking whaton earth are they?
Well, there's a lot of peoplewho see these random videos
online and just because it's alittle fad or people are
promising, you can make so muchmoney on it and it's the next
best thing to get rich quick.
Most of the time, it's probablytoo good to be true.
So I would just stick totimeless principles.
I would stick to propertyitself as a wealth creation tool
(10:47):
.
You can see it over the lasthundred years.
If you look at it on a graphand you zoom out, it's always
got an upward trajectory.
Yes, there may be some drops insome areas every year, but
pending where you grow and whereyou purchase, you can if done
correctly, you can come out onthe other side very well.
Number three, ignoring thenumbers.
(11:08):
If the deal doesn't stack uptoday in terms of your cashflow
and the amount of money you havefor the deal, you don't want to
rely on the potential of the.
So let's say, for example, ifyou bought an investment
property today and you had toput in $300 per week to cover
the mortgage repayments.
(11:28):
But you think that the overallcapital growth of the property
in 5, 10 years will outweigh theamount that you're putting in
per week.
Well, you may be right, but youalso may be wrong.
If you can't afford to take therisk or to not know if it will
pay off, then don't do it at all.
(11:49):
You can't ignore the numbers.
If you're going to actuallyinvest in property and put money
in yourself, you don't want toactually ruin your own
day-to-day life in terms of yourspending and limit yourselves
to what you want to do.
So make sure you look at thenumbers and actually figure out
if you can afford it.
If it is negative per week, ordon't just rely on the capital
(12:11):
growth because you don't know itanything can happen.
Lastly, analysis paralysis.
So this is a classic waitingfor the perfect time to buy.
Let's wait next month until therates drop again.
Oh no, actually we'll wait tillNovember for another rate drop.
The question is if you waittill November, you could have
already missed out on $60,000,$70,000, $80,000 of capital
(12:33):
growth and capital gains thatyou would have purchased right
now.
So there's never a perfect timeto invest or to buy.
It doesn't exist.
The right time is to get in assoon as you possibly can, so
that might be as soon as youhave a certain amount of savings
saved up.
Let's say you're wanting to hit$80,000 in terms of savings to
(12:53):
purchase a property as soon asyou hit 80, I would be jumping
straight in.
Whatever you can buy, get yourfoot in the door because if done
correctly and you build equity,then you keep going and you go
again because if done correctlyand you build equity, then you
keep going and you go again.
The hardest bit is getting inat the first, and especially in
today's day and age.
In Australia, with the ratesstarting to drop even more,
we've seen in the past, whenrates drop, property prices
(13:16):
generally tend to increase.
So if you're waiting foranother rate drop, well, you're
probably going to be priced outif you've got a limited budget.
So if you can afford to do it,get in before you're priced out.
There's no perfect time to buyNow.
To finish off, if these pointshave fired you up and you're
(13:37):
wondering what to do next,here's three steps you can take
today.
So the main one if you'resitting on the sidelines and
you've been thinking for a whilewhat can I do?
I want to get involved.
Assess your borrowing power.
So, if you have a mortgagebroker, speak to your mortgage
broker.
Ask them to tell you what youcan do before you get
(13:57):
emotionally invested in aproperty.
What I mean by that is figureout what is your borrowing
capacity.
If it's 800k, what options canyou look at?
And if you can borrow 800K, orif you're wanting to actually
invest and you can afford whatyou're wanting to look at, then
it's time to build your strategy.
So the number one question weget and we ask clients is what
(14:20):
is your strategy?
Are you aiming for capitalgrowth?
Like how old are you?
Are you in your 20s or 30s?
Do you aiming for capitalgrowth?
Like how old are you?
Are you in your twenties orthirties?
You want growth over time?
Do you want cashflow or do youwant the best of both worlds and
have both of them, which isideal.
But your goals dictate yourmarket and your actual property
type, because there'sindividuals out there who solely
want cashflow for theirinvestment property, and that's
(14:42):
fine, because that's where theythey're at in their life and
that's what they want to achieve.
Where there's other ones, whoare generally the younger
individuals who want the capitalgrowth because they've got 30,
40 years to retirement.
So it fully changes and it'sall different.
Number three get support.
So, whether it's a personalmentor, investment property
(15:03):
advisor like the team at AssetRoad, or an actual real estate
agent who will find you aproperty that they're already
selling, get help.
Don't go and do it alone.
It's a lot easier when you'vegot someone actually helping you
in your corner.
I hate to say it, though.
There are some people out therewho say they help you but
they're not in your bestinterest.
(15:24):
But you've just got to figurethem out and avoid them at all
costs, because there's alwayspeople out there like that.
But if you speak to the rightpeople, talk around town, have a
chat to all different companies, but definitely get support,
because that's the mostimportant thing.
The best investors don't alwaysknow the most.
They just take consistentaction with the right team
(15:46):
behind them, because without theright team you don't know
anything, and right now, a lotof individuals are time poor
professionals, so you don't evenhave the time to do the
investigating and looking at theproperties Because you're
working nine to five at least.
Nine to six, nine to seven, gethome and all of a sudden it's
(16:08):
10 o'clock, you're going to bed,so that's why you need to get
support.
But that's it for today'sepisode.
If this has got your wheelsturning, hit the subscribe
button, leave us a review or,better yet, reach out to us via
our Instagram, our TikTok, or toshoot us an inquiry on
assetroadcomau.
We're here to help you makeconfident, strategic moves in
(16:31):
the property game.
But until next time, I'll seeyou then.
Ciao, we hope you enjoyed theepisode.
As always, you know exactlywhat to do.
Hit that follow button,subscribe whatever platform you
listen to this podcast on.
(16:53):
Also, share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately it's the endand we'll see you next week.
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