Our favourite property magazine is celebrating its latest issue.  Sarah Megginson joins us to explain what we will find inside this moths issue of Your Investment Property.
Transcript:
Kevin:   I’m quite often asked by investors whether it’s best to invest for capital growth or return, return on your investment. That’s the question that’s posed in the current edition of Your Investment Property Magazine, and to talk to me about that and some of the learnings that have come out of this exploration, Sarah Megginson, from Your Investment Property Magazine.
Kevin:   G’day, Sarah. How are you doing?
Sarah Megginson:   I’m great. Thanks, Kev.
Kevin:   The new issue has just been released. It was released only about 24 hours ago. So if you’re getting it by post, you would already have it, but have a look for it in all of the popular outlets, particularly at airports. I notice it’s there.
Kevin:   Sarah, the front cover talks about this question, doesn’t it? I mean, it’s a question that comes up quite often.
Sarah Megginson:   Yes, absolutely. I think it’s one of the biggest questions around property investing that people ask themselves when they’re first planning how they’re going to make it work. Obviously, at the moment, in the big capital cities, it takes a lot of money to get into the market and the yields are really low. In some of the suburbs of Sydney, you’re getting 2 or 3% yields, so that can be really hard to hold on to. So that’s kind of why we’ve attacked this issue, in this issue. Should I say, attached this topic in this issue. Really kind of break it down and look at the differences between investing for cashflow, investing for yield, what kind of investment strategy it suits, and what are the risks of both?
Kevin:   Yeah, I do think it has a lot to do with your tolerance for risk, and also what age you’re at. People of an older age like me would probably think, well, maybe I need more of a return on my investment as opposed to capital growth.
Sarah Megginson:   Absolutely. I think you hit the nail on the head there. And we’ve got another story in this issue which is about that very topic of investing through the ages and how your strategy changes as you get older. I think, obviously, that the closer you’re getting to retirement, well, either the less risky you can afford to be because you can’t afford to lose it all. But for some people, that’s when they really step their risk appetite up because they want to get some really good results before they retire, so there’s really a lot to think about.
Sarah Megginson:   It’s so true that there’s no one size fits all solution. It changes from person to person, depending on your budget and your situation and your investment timeline and so many different factors, so you’ve got to kind of really create a personalised strategy for you.
Kevin:   You do, because things like health even come into it, how long you’re going to work, what sort of wage you’re on. Because the banks, once you reach a certain age, they really just won’t lend to you anyway, so you’ve really got to work off your own capital or your own savings, and maybe even what you’ve got in your superannuation scheme. But that comes with different problems as well because it’s harder to borrow nowadays in your super as well.
Sarah Megginson:   Yeah, that’s the thing. And the goalposts keep changing, that something that may have worked even two or three years ago might not work anymore, which is why you’ve got to really keep proactively looking at what you’re doing, looking at the results you’re getting.
Sarah Megginson:   I just recently, this year, sold two properties that 12 months ago I wasn’t expecting to sell at all, but every year I do a check-in with my advisor and we looked at it and I went, “You know what? They’re not exactly serving my needs anymore,” so we made that decision. You’ve just always got to be open to what’s the best decision you can make right now, I think.
Kevin:   Yeah, I do think, and you’ll find a lot of insights, great insights in this article in the latest edition of Your Investment Property Magazine, which I now have a copy of. I’ve scanned over the article and I think it’s absolutely sensational.
Kevin:   So if you’re at that stage, you’re questioning what you should be doing about your investments, you’ll find a lot of answers inside the current edition. That’s the cover story, so make sure you pick up your copy of Your Investment Property Magazine. It’s out now.
Kevin:   Sarah, thank you. I’ll catch you in the podcast. We’ll talk in a lot more detail. The podcast is coming out any day, so watch out for it right here at Real Estate Talk, and we’re going to do a video this week on that topic, aren’t we, about investing through the ages, Sarah.
Sarah Megginson:   Yeah, I think it’s something that people often don’t really think about too much, their age and how that impacts their investment strategy. You can kind of set something up and keep going along that track for a while without realising that maybe your situation has changed and it’s not quite working for you anymore, so it’s a really good topic.
Kevin:   Pick it up in the latest edition of Your Investment Property Magazine. Watch our Real Estate Talk for our podcast and videos that are coming out in relation to all of those articles as well.
Kevin:   Sarah, thanks for your time.
Sarah Megginson:   Thanks, Kev.