PodcastsThe Property Couch468 | Why Don’t We Start with Property First and the Hidden Power of Building a Moat

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