Alot of property investors make one critical mistake. Especially the ones who desribe how they accumulated a uge portfolio of low end property quickly, gearing to the hilt. What is the moster lurking in the closet? There are a number, but the real spitball is MAINTENANCE. Every propety needs it and often. If you have to use tradies they are commonly going to fleece you. If you do it youself youd better be good at it. In truth there is no such thing as a type of investment that is safe. Not stocks , not property, not bonds, not bank accounts. But two things in this world you can be sure, inflation and taxes. Plus divorce can be a joker too, pretty often. Property is much better in the long run than cash in the bank, but liquidity can be a big problem at times. But will Oz do a USA trick in property? Hmmm, it migh be worth remembering that the Yanks can walk away from an underwater property commonly, and the debt doesnt follow them. Not so here. Your own house is subject to capital gains tax over there. Not so here. Interest on invested money is taxed, but property is only taxed if you sell it, and then not if you live in it. Taxes can keep you in the doghouse if you fall in the crosshairs. I made a million while in the public service negatively gearing and working my freckle off renovating at weekends. Ive ben through heavy weather with a dependant family but it has been property that came to the rescue. How long that will remain so I dont know. In the end the only wealth that matters is the credit points you build up with the author of all things and the judge of us all. Everything else is a sideshow.
