In this episode of Talking Property, Debbie interviews Mark Armstrong from Property Planning Australia.
In the interview Mark details the steps required to build a balanced property portfolio. Mark and Debbie discuss:
- What is a balanced property portfolio and why it is crucial to securing your financial future
- How long does it really take to build a balanced property portfolio?
- The various types of property investment strategy and how to select the right strategy for your circumstances
- What to look for – and what to avoid – when investing in property overseas
- The characteristics of commercial property investment and some traps to avoid
Mark’s interview runs at about 15 minutes and he shares some very valuable information.
To listen click the play button below:
Show length: 14:31
Here is Mark’s bio:
Mark is a Director of Property Planning Australia, a company which develops property and financial planning strategies for local, interstate and overseas clients. He is also a director of The Property School providing university endorsed property education. A CPA and member of the Real Estate Institute of Victoria, Mark is a prominent and respected commentator on property issues, with a regular ‘Property Planner’ column in the Sunday Age, and appearances in The Age, Sydney Morning Herald, Australian Property Investor magazine and Your Mortgage magazine. He has also recently co-authored a book – Property for Life: Using real estate to plan your future.
If you have a comment or question for Debbie or Mark then please post it below.
The information provided in the Talking Property podcast is general in nature and should not be relied upon as a substitute for professional advice. Always consult with a professional advisor before making any investment decisions.
{ 10 comments… read them below or add one }
Thanks Mark, i really enjoyed listening to this show. Interesting what you said about commerical property – its a new area for me and i hadnt thought about it like that.
Hello Mark, my name is Peter, and i have been told by a friend of mine to sell my properties, who says properties in melbourne will crash by 40% to 50%. He has me a bit worried here. The properties i have are a 1 bed room apt in yarra’s edge in the docklands-67 sq internally&car park-paid 310k -he says i,d be lucky to get 250k for it. Also a 1 bed room+study with car park&storage cage in lygon st brunswick east–paid 369k—he says also i,d be lucky to get 270k for this–i also sub divided and built a 21 sq 3 bed room town house in central sunshine, yet he says there will be no growth in sunshine for years because he thinks it’s turning into a ghetto area–he says i would be lucky to 250 for the town house, yet it has all the mod cons so to speak you could want. He has me really concerned i think i will put these on the market to sell–do you think this would be a good idea..appreciate you help —thanks peter..
A balanced portfolio sounds great – but what do you do when you can only afford one property – and *maybe* another in a couple of years time??
Good interview Debbie and Mark. Where does diversification fit into your model? Strikes me that a balanced portfolio is leaning towards having a bunch of the same type of property. Is that a problem or a risk from the perspective of diversification? Shouldnt I be building a good mix of property assets – some growth, some yield? Some units, some houses etc..
Keith
Hi Keith,
In some cases it does mean having all the same type of property but in other cases it may be having various types f property. Thats the point a balanced portfolio will vary depending on each individuals circumstances and the primary investment objective.
Cheers
Mark
Hi Peter,
I doubt very much that property prices will fall that far given interest rates are so low and we have a limited supply of property. Different property will show different levels of growth and some may even fall over the next 12 months. I suggest you get your property reviewed by independent advisors. We can do this at http://www.propertyplanning.com.au if you are unsure where to go.
Cheers
Mark
Hi Joanne,
Building a portfolio can take time. The time to buy the next property will be determined by when it is right for you. If that means waiting a couple of years then so be it. If you can buy a second one immediately then that is great.
Once again there is no perfect one size fits all strategy. It should be developed around your own circumstances – including your risk profile.
Cheers
Mark
Hi Mark, We are paying approx $600.00 more each month than the minimum repayments for our housing loan. We have been thinking of investing in property. Unsure whether to keep paying the extra money off our mortgage or using this money towards an investment property. Mortgage is currently $294,000. House is valued at approximately $700,000 (conservative figure). What are your thoughts?
Hi Carol,
I suggest you keep paying the loan off if it is for your home and then use borrowed funds to purchase the investment.
Debt on your home is not tax deductable so should be paid back first. Debt on your investment will be tax deductable.
Cheers
Mark
Hi Mark,
I heard you are no longer with Property Planing – where are you know and how can I contact you?
P.
Paul Garson.