How do you frame risk when it making property, mortgage and money decisions?
What risk management strategies do you have in place within your property plan, mortgage and property selection strategies to minimise your downside while optimising the upside?
It can be a tricky balancing act.
In our 10th episode, the Property Planner, Buyer and Professor dissect “Why your approach and assessment of risk is paramount to property success”, and if done poorly, how it can lead you up the garden path!
Join Peter Koulizos (Property Professor), Cate Bakos (Property Buyer) and David Johnston (Property Planner), as they take you through all the different ways to look at, consider, and manage risk when making property, mortgage, money and lifestyle decisions before your next purchase and the critical mistakes to avoid.
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- Strategies are many and varied. Diversification, property type, location, mortgage strategy, cash flow and savings buffers, price range, larger cities, higher incomes, diversity of industry, and the list goes on.
- What risk aversions could be affecting you from making successful property decisions?
- Every property purchase involves risk – and how to get comfortable with it.
- Why understanding your risk tolerance and your partner’s is important?
- Higher risk can lead to higher return. You need to take some risks to get results, but how much is personal.
- How your stage of life affects your property decisions and the level of risk you can take on.
- The different forms of risk.
- Are you fearful of the right or wrong things?
- Melbourne and Sydney – why bigger cities supported by well chosen assets can minimise risk.
- The difference between emotional risk and financial risk.
- Analysis paralysis – the risk of not making decisions.
- Foregoing the important things in life – are your lifestyle goals at risk?
- Professional advice – are you dealing with an independent expert?
- Why you shouldn’t expect perfection.
The Property Professor’s Golden nugget: risk and return are closely matched. You can mitigate the risk by doing your research and using a trusted team, but in the end, there is a risk involved.
The Property Buyer’s Golden nugget: be cognisant of your partner’s risk aversion or risk appetite. Accept that if your partner is more risk averse, it can be a really well-balanced equation. If you’re in a yin and yang situation, be grateful that you’ve got someone to hold you accountable.