Property 101 & REITs

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Australian Finance Podcast 58 min 3 speakers 8 chapters transcribed 3 months ago
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What are the myths surrounding Australian property prices?

Owen Raskovich 0:00
Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls. Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.
Owen Raskovich 0:45
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Kate Campbell 1:28
Welcome to the Australian Finance Podcast, a podcast for people who want to learn more about their personal finances and get the most from their money. This series is hosted by Kate Campbell from HowToMoney and Owen Raskovich from Rask Finance.
Owen Raskovich 1:43
The Australian Finance Podcast is provided for educational purposes only. The information is general in nature and does not take into account your needs, goals or objectives. What that means is the information does not apply to you specifically. So consider getting the advice of a licensed and trusted professional before acting on the information. Kate, welcome to the eighth episode of the Australian Finance Podcast. Hi, Owen. What are we talking about today?
Unknown 2:09
Well, today we're going to dive into this topic of property investing, owning for lifestyle reasons and real estate investment trusts, which are another way to gain exposure to the Australian and global property and infrastructure market.
Owen Raskovich 2:24
Cool. So everyone should be familiar with property. The great Australian dream. That's it. It is. And we've talked about this in passing a little bit. And just off air a moment ago, we were saying that this may be a slightly longer episode, but we expect to be relevant to everyone.
Unknown 2:42
Yeah. Everyone's got to live somewhere.
Owen Raskovich 2:44
So chances are in some way, shape or form, you have exposure to property. So I think this episode will benefit a lot of people.
Unknown 2:52
Yeah.
Owen Raskovich 2:53
So why don't we start off with why property? Is it a lifestyle asset? Is it an investment? Is it both? What do you think?
Unknown 3:00
I think it can be both. A lot of people are buying property for all sorts of different reasons, whether that be somewhere they want to live and they're buying it. There's emotion involved.

How can you save for a house deposit effectively?

Unknown 3:10
They're buying a family home. They're buying their first apartment just so they have somewhere to live or they're buying it as an investment and they're planning on renting it out to someone else.
Okay.
Owen Raskovich 3:22
That's the thing, right? You can use it in almost any different way, shape or form. There's no right or wrong answer necessarily, I guess. It depends on what you want from it. One of the things that we've become used to in Australia is, I would say, pretty good performance from property as an investment, but also from a homeowner's perspective. You talk to most baby boomers or people approaching or in retirement and property has become probably their biggest asset. And I think... There are a few reasons which we'll touch on in a minute, but that can potentially lead people astray in terms of what their, I suppose, their preconceptions are before they approach property, whether they're buyers, whether they're investors, et cetera.

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