WILLJACKSON

GQ (Australia) - - INSIDE GQ -

WRITER

Jack­son caught up with busi­ness guru Mark Bouris to get his take on the real-es­tate mar­ket. “I was sur­prised by how grounded he was,” re­ports Jack­son. Turn to p198 for Bouris’ in­sights.

WHY HAS BOURIS BEEN SO SUC­CESS­FUL?

The day af­ter we spoke, he was due to fight four-time world cham­pion Danny Green in a char­ity box­ing match, so I guess op­ti­mism and balls are at least part of the pic­ture.

WHAT’S THE BEST WAY TO GET INTO THE PROP­ERTY GAME?

I’d par­rot Bouris on this. Be care­ful not to over­pay – if prop­er­ties are selling for more than seven times the av­er­age an­nual house­hold in­come in a par­tic­u­lar sub­urb, that area is ex­pe­ri­enc­ing a bub­ble. Do some re­search on what a fair price should be, be­fore bid­ding.

COM­MON MIS­CON­CEP­TIONS ABOUT THE HOUS­ING MAR­KET?

That you can’t lose money in residential prop­erty. Peo­ple in post-gfc Ire­land and Spain might dis­agree.

SAY WE HAVE A SPARE $10,000. HOW SHOULD WE IN­VEST IT?

Avoid stocks as a short-term in­vest­ment – eq­ui­ties are far too volatile if you need the money back in the next year or two. How­ever, for a longer in­vest­ment pe­riod, they look at­trac­tive.

WHICH SEC­TORS SHOULD IN­VESTORS AVOID?

Bonds. The prices of these in­vest­ments move in­versely to in­ter­est rates, and in­ter­est rates across the de­vel­oped world are at all-time lows. With in­ter­est rates only able to rise, the out­look for bonds is bleak.

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