Aussie FIRE | Financial Independence Retire Early 55. Financial advice we're not subscribing to - part 2
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Jan 2, 2026 In this engaging discussion, the hosts tackle the pressures around getting on the 'property ladder' and why many young people prefer renting over buying. They critique the notion of rent as 'dead money' and reveal potential annual savings from renting instead of owning. The debate delves into mortgage strategies, emphasizing the opportunity cost of extra payments. They also explore smart diversification, cautioning against complicating investment portfolios, and discuss when maxing out super contributions makes sense versus valuing liquidity.
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Property Advice Is Oversubscribed
- Investment property advice is oversubscribed because many advisers learned before low-cost ETFs existed and benefited from a unique housing boom.
- Treat property as one option, not the default, and compare costs and expected returns to ETFs and other assets.
Detached House Is Not The Only Goal
- The cultural fixation on owning a detached house is historically contingent, not inherently superior.
- Renting a house can dramatically lower annual outgoings versus owning, freeing capital for investments or flexibility.
Do The Rent Vs Own Math
- Before buying to own, run rent-versus-own math: include deposit, stamp duty, interest, rates and maintenance.
- Consider renting if it saves tens of thousands per year and preserves half-a-million in investable capital.