Investopoly Why asset quality matters more than timing: Q&A on apartments, upgrades, Geelong, borrowing capacity, and early investing
Dec 8, 2025
In this engaging session, listeners learn why asset quality trumps market timing. Stuart advises on cutting losses with underperforming apartments and highlights the advantage of upgrading to premium properties. He warns about the pitfalls of investing in less desirable suburbs like Corio, and suggests strategies for navigating future moves to cities like Melbourne or Sydney. Young investors are encouraged to wait for better assets while considering the benefits of gearing into property versus shares, and the value of boosting superannuation.
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Cut Losses On Low‑Quality Apartments
- Avoid holding one‑bedroom, off‑the‑plan apartments as long‑term investments if they lack scarcity and land value.
- Cut losses on underperforming studio/one‑bed apartments and redirect funds into super or better assets before retirement.
Level Up Into One Premium Property
- Sell multiple good assets to 'level up' into one premium, blue‑chip property when financially feasible.
- Prioritize asset quality and scarcity over diversification across mediocre properties for long‑term compounding.
Borrowing Capacity Must Buy Quality
- High gearing tied to poor‑quality assets reduces future opportunities and return on borrowing capacity.
- Use borrowing capacity only for assets with strong long‑term compounding potential in scarce locations.
