This episode explores the concept of counter-cyclical property investment, particularly in the context of the currently overheated Sydney market. Against the backdrop of a booming market fueled by FOMO (fear of missing out) and easy credit, the hosts caution listeners against buying at the peak, drawing parallels to historical bubbles and the psychology of investors. More significantly, they highlight the importance of understanding market fundamentals like income, borrowing power, and supply and demand, noting the risks associated with oversupply in the apartment market. The hosts advocate for a borderless investment approach, suggesting investors consider markets like Brisbane, which may be undervalued and poised for future growth. For instance, properties in Brisbane are currently priced similarly to what they were in 2007-2008, presenting a potential buying opportunity. The discussion pivots to the role of regulators in preventing excessive borrowing, with a call for minimum assessment rates to ensure sensible investment decisions. Emerging industry patterns reflected in this analysis suggest a shift towards value-driven investment strategies, focusing on long-term growth rather than short-term gains in overvalued markets.
