Property Insights

“Top 3 Risks of Property Investing” Mark Bouris & John Pidgeon

21st Nov, 2023

John Pidgeon is a Property Coach, Buyers Agent & Podcaster with a passion for educating those looking to enter the property market, particularly Millennial investors. He is the Director and Head Property Coach of Solvere, Director & Buyers Agent at Envisage Property, and co-host of Australia’s top Finance Podcasts, My Millennial Money and My Millennial Property. In both 2018 and 2019, John was also recognised as one of Australia’s Top 10 Property Specialists in The Property Investor Magazine. 

Join Mark and John as they dig into all things property on this week’s episode of Property Insights – from mindset to the practical realities we need to know to get into and stay in Australia’s property market.

Key Takeaways:

  • Knowing the basics before investing in the property market is key. John highlights the importance of understanding cash flow management and foundational knowledge, such as understanding deposits and borrowing limits, for first home buyers.
  • ‘Long horizon.’ Maintaining a long-term perspective in property transactions is vital. This allows investors to avoid getting hung up on market fluctuations, maintain perspective on what strategies are really going to be realistic for their situation, and to reassess their approach towards considerations such as cash flow and mortgage costs.
  • John questions the government’s reliance on the RBA to shift inflation. He sees a diminishing likelihood of the mortgage cliff resulting in more properties hitting the market and expands on his concerns around a likely reduction in property investors without policy driven incentives from the RBA, lenders or government.
  • ‘There’s never a one-size fits all approach.’ Everyone’s values and situation are different. John emphasises how important it is to ask a whole lot of questions and do a whole lot of analysis before looking at property to make sure you find the right investment strategy.
  • Rental properties and increasing rents are contributing significantly to the challenges faced by first-time property buyers, affecting affordability and potential market strategies. John and Mark see the rise in rents as a significant factor in current property market dynamics.
  • ‘Markets within markets.’ John and Mark cover the complexity of real estate markets within Australia, with insights into different cities’ property dynamics. John sees markets as balanced but shifting into 2024. 

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