87. From investment properties to ETFs: how Dave actually made the switch

Most people sit firmly on one side of the property versus shares fence. Dave Gow spent 15-plus years on both, building a property portfolio, hitting the borrowing ceiling, then selling down to fund the ETF portfolio he now lives off. In this episode Hayden puts him through a barrage of listener-style questions on how the transition actually works, and why most property investors have never honestly audited their returns.

In this episode we'll discuss:

💸 Why the property-only plan stalled: maxed-out borrowing capacity, and cash flow forecasts that looked grim even with the properties paid off

💸 The mechanics of the switch: sell a property, park the lump sum in an offset, live off part of it, and dollar cost average the rest into ETFs over a couple of years

💸 Why holding maximum debt while living off your portfolio rarely works, even when the maths of leverage looks appealing

💸 Surviving the brutal years: Perth rents falling while expenses rose, negative cash flow on a falling asset, and why Dave banked on mean reversion

💸 The self-delusion audit: anchoring to purchase price and forgetting stamp duty, holding costs, selling fees and CGT. "I bought for 600 and sold for a million" rarely means what people think

💸 Why leverage only works when returns clearly beat the cost of servicing it, and why interest rates and timing matter more than the property you pick

💸 How much you need to retire via property: roughly 30 to 35 times annual expenses instead of 25, to cover selling costs and tax on the way through

💸 Which property to sell first: most equity, strongest market, worst cash flow, and the psychology trap of always keeping the recent winner

💸 Dave's contrarian take on Melbourne: why the unloved market (with some land, away from apartment oversupply) might be the interesting one

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Disclaimer

Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it's appropriate for you. You should also consider seeking professional advice before making any financial decision.

Pearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guide

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