If you have $1,000,000 in cash how would you invest that money in the Australian property market?
Ben: If you had one million dollars to invest in property in today’s market, where would you invest and why?
Ryan: I want to turn this question on its head because I think the question is rubbish. I think asking if you had a million dollars, and all you’re asking is where would you buy, that’s the most horrible attitude to have.
Like it should be, how would you invest? Or what would you do to make that into more money, because where you buy is just one aspect of investing and depending on your strategy it can be really important or depending on your strategy, it can be not as important.
And so I would be more focused on what are you going to actively do to turn that million into more. Are you going for cash flow, are you going to do renovations, are you going to do extensions to properties, how are you going to get equity. Are you going to buy under value and then to me, where you would buy would come second to that.
Ben: That’s so powerful, man, because like let’s pretend that you have a million dollars right now to spend, and you know, one strategy could be turning a million dollars into 10 million dollars over the next 20 years, which is targeting capital growth. Another strategy could be to get, you know, 90 grand per year worth of passive income and chill for the rest of your life, so therefore your target, you know, passive cash flow property.
You could just be looking to make another wage and create chunks of 200K every year which is a development strategy. So it really comes back to where you are in your life and how bad you want to get away from the work that you’re currently doing more than anything else.
Ryan: Yeah, well because that’s the thing, right? If it was me, because I’m not super money hungry, so then like wanting to make millions and millions and billions, I’d be like a million bucks, I would invest in something that would generate me passive income today that I could then live off and then pursue Melee, and just not have to worry about money.
So like I would invest in something totally different to someone like Ben who might want to turn that million into 10 million in the future. So depending on your goals, and whether your goals are right now, whether your goals are passive income in five years time or 10 years time or whether it’s like huge accumulated wealth 20 years into the future, would massively change how you invested, let alone where you invested.
Ben: Yeah, and where you invest is 100% specific to your short, medium and long-term strategy, so there’s all sorts of great markets in Australia for all of those things, it just depends on you know, what you feel comfortable doing and getting clear of what you want to do before you start.
Ryan: Yeah, and I think people need to get … I don’t know how to explain it, but like a dollar is not a dollar and not a dollar. Like there’s not one best suburb to invest in for everyone.
There are different strategies require different areas and different types of properties and different opportunities. So there’s not just like one area that this is the best area, and if everyone knew about it they would all want to invest in there. It’s like everyone’s different.
Hey guys, I hope that you enjoyed the answer to this question, which came from my live Q&A episode with Ben on YouTube. We will be doing more these in the future. If you want to check out Ben then he is offering free strategy sessions to On Property listeners.
To find out more about that, go to onproperty.com.au/session and you can see all the details over there.
That’s it for today, and until next time, stay positive.