This episode explores the intricacies of asset selection in property investment, challenging conventional approaches. Against the backdrop of a lighthearted discussion about the Cricket World Cup, hosts Bryce Holdaway and Ben Kingsley delve into the ABCD property investment formula, emphasizing that asset selection, while crucial, shouldn't be the starting point. More significantly, they highlight the primacy of location, arguing that 80% of investment return stems from location choice, with only 20% attributed to the property itself. For instance, they cite the example of a seemingly unremarkable property in an elite Brisbane suburb, showcasing how location trumps aesthetics in driving value. The discussion then pivots to the debate of new versus old properties, emphasizing that established properties in prime locations often outperform new ones due to superior growth potential and the ability to create depreciation through renovations. Ultimately, the hosts advocate for a holistic approach, prioritizing location and land value over superficial features, and caution against solely relying on free, developer-driven advice.
