118: 7 Reasons Why You Shouldn’t Buy an Investment Property Right Now (with Bushy Martin)

The property investing journey will always vary for each person. 

Some know what they want, when they want, right from the get-go, while others stay behind the fence, waiting for… something.

What makes people so hesitant to get into the market? Is it the timing? The location? The pandemic?

Today’s episode is a webinar with Bushy Martin, founder of leading property finance and advisory firm KnowHow Property. We discuss the different problems people are facing that prevent them from getting into the market. From affordability, finding value in a property, getting out of your comfort zone, to the D.I.Y. dilemma, we cover a lot.

We present a lot of visuals and illustrations on our video podcast, but if you’re just listening to the audio version, you’re sure to get value out of this episode too. We still highly recommend going to Youtube to watch the full episode for the best experience though!

We hope you find today’s show valuable, and if you do, please let us know by sending us an e-mail at [email protected]! We’d love to know your thoughts! Also, don’t forget to subscribe, tune in, and share this podcast. 

See you on the inside!

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In this episode, we cover:

1. Establishing the background for today’s topic [02:36]
2. A run-through of all 7 reasons [06:24]
3. “The market’s overheated… i’ll wait it out” [09:08]
   • What an overheated market looks like [17:38]
   • The secret to understanding when & where to enter the market [20:22]
   • Not all locations are sustainable [25:33]
   • Putting colour on the old “demand and supply” equation [28:52]
4. “I can’t find a good property I can afford” [30:23]
   • What’s actually happening on the ground? [33:28]
   • What we mean when we talk about ‘regional centers’ [39:18]
5. “I might pay more than what the property’s really worth” [41:12]
   • The ‘Value Investing’ methodology [42:33]
   • Look at the intrinsic value line [45:57]
   • Ways to assess the value of a property [47:15]
6. “I have to buy in a capital city to get growth” [52:39]
   • All markets move asynchronously [53:27]
   • How regional markets perform versus capital cities [54:36]
   • Regional versus capital yields [58:56]
7. “I’m uncomfortable buying something I haven’t physically seen” [01:02:21]
   • Don’t buy just because it’s something you “know” [01:05:46]
   • Don’t let your past knowledge stand in the way of your future [01:09:42]
   • The ‘magic’ happens outside your comfort zone [01:10:56]
8. “I’d rather do it myself than pay Buyers Agents $15k+ [01:12:40]
   • Can you really D.I.Y. it? [01:13:19]
   • D.I.Y. Investors tend to get stuck [01:20:30]
9. “Covid will trigger a recession… I’ll just wait until after it’s over” [01:22:39]
   • The asymmetrical impact of the ‘90/’91 recession [01:24:34]
   • Access to credit is the single biggest potential throttle [01:27:34]
   • RBA on government spending & property downturn [01:29:10]
   • The 18-year Economic Cycle Theory [01:30:29]
10. Base your decision on facts, not fear [01:34:57]

Links from the show:

• Great by Choice, a book by Jim Collins

About our guest:

Connect with Us:

• The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity)

• Dashdot Buyers Agents Website (https://www.dashdot.com/au/)

• Limitless: The Renegade’s Guide to Building Wealth Through Property – Goose McGrath (https://www.renegadespropertybook.com)

• Ready to work with us directly? (https://dashdot.com.au/discovery)

If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast with others you know will benefit from the show!