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468 | Why Don’t We Start with Property First and the Hidden Power of Building a Moat

The Property Couch

Wed Nov 15 2023



Property investing mastery:

  • The podcasters revisit foundational pillars from 2015, emphasizing their enduring relevance and importance for building a stable property portfolio.
  • They stress the significance of understanding concepts such as borrowing power, asset selection, and defense in today's market conditions.

Borrowing power as game of finance:

  • Borrowing power is likened to a game of finance, where strategic decisions can maximize leverage and control larger assets.
  • Discussion centers on the impact of macro-prudential interferences on accessing finance, highlighting changes in borrowing capacity due to regulatory measures.

Importance of asset selection:

  • Emphasizes the pivotal role of location in property investment, asserting that location does 80% of the heavy lifting in determining property value.
  • Introduces the concept of buyer's decision quadrant, guiding investors to consider price, location, size of land, and quality of dwelling when making purchasing decisions.

Defense as risk mitigation strategy:

  • Advocates for risk mitigation through defensive strategies such as insurance coverage for income protection, trauma, total permanent disability (TPD), landlord protection insurance, and building insurance.
  • Stresses the importance of protecting personal assets by mitigating risks associated with illness or injury through appropriate financial planning and insurance measures.

Property Investment Formula:

  • The hosts revisit the foundational pillars of property investing, emphasizing their evergreen nature and relevance in the current market conditions.
  • They underscore the enduring importance of fundamental principles in property investment, highlighting that despite changing economic landscapes, the core strategies remain steadfast.

Ikigai Concept:

  • The concept of Ikigai is discussed as a mission or contribution to the world that gives a sense of purpose, aligning it with the mission and contribution of "The Property Couch" podcast.
  • The hosts delve into the four primary elements of Ikigai - passion, mission, vocation, and profession - illustrating how they intersect to define one's purpose and sense of fulfillment.

Political Implications on Rental Properties:

  • Concerns are raised about potential political decisions impacting rental properties in Queensland, particularly related to proposed significant increases in rates for landlords by certain political parties.
  • The discussion highlights the potential unintended consequences such as rising rents due to policies affecting small business owners who are property investors. It emphasizes the need for caution regarding short-term wins at the expense of long-term implications.