This episode explores risk mitigation strategies within property investment, focusing on a four-part series: cash flow management, borrowing power, asset selection, and defense. The hosts emphasize the importance of understanding personal cash flows and managing spending habits as a primary defense. Regarding borrowing power, they advise working with stable financial institutions and maintaining a buffer for unexpected events like job loss. Asset selection should involve filters such as investment grade, scarcity, and owner-occupier appeal to avoid speculative investments in volatile markets like mining towns, suggesting a minimum of $3 million in property value before considering high-risk investments. The discussion pivots to overall portfolio defense, including building and landlord protection insurance to mitigate risks like property damage or tenant issues, and income protection and trauma insurance to protect against income loss due to illness or injury, advocating for advice from qualified financial planners to ensure comprehensive coverage.
