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.