Aussie FIRE | Financial Independence Retire Early 34. Dave's hard lessons from 15 years of property investing
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Mar 14, 2025 Dave shares hard-won lessons from 15 years in property investing, highlighting essential truths about cash flow versus capital growth. He navigates the emotional rollercoaster of real estate markets, discussing challenges like managing cash flow and the ups and downs of tenant relationships. Humorous stories from upscale dining experiences juxtapose frugality with social status. The conversation also dives into using buyer's agents and emphasizes the importance of market timing, location, and diversification in achieving financial independence.
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Property Growth Is Cyclical And Unreliable
- Property price growth is unreliable and can stay flat or decline for many years.
- Relying on steady capital gains while carrying holding costs can leave you at break-even for long periods.
Perth Downturn Taught Longevity Of Declines
- Dave lived through the Perth downturn and realised declines can last much longer than expected.
- That experience changed his view on how common long flat or falling phases are.
Tax Benefits Don't Eliminate Real Cash Pain
- Negative cash flow and negative gearing reduce taxable income but create ongoing real cash outflows.
- Those losses feel worse when markets are flat or falling and interest rates rise.