In this episode, Stuart presents a fascinating case study that challenges the traditional view on overcapitalising on a home. The clients in focus own a profitable business and have been strategically building their investment portfolio. Despite planning to spend a significant amount on constructing their dream home, Stuart reveals that overcapitalising may not be a major concern if certain conditions are met.
The clients in question own a share in a thriving business generating over $1m pre-tax profit. They have a diverse investment portfolio and a desire to build their dream home. Despite spending almost $7m on this home, the potential for financial loss is diminished by their ability to continue investing in other assets and a solid exit strategy. Stuart highlights the importance of affordability, continued wealth-building outside of the home, and having a viable exit strategy.
Listeners are encouraged to consider this unconventional approach to home investment, emphasising the balance between enjoying the present and securing future financial stability. This insightful episode challenges conventional wisdom and offers a fresh perspective on wealth-building strategies.
If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps me reach more incredible listeners like you. Thank you for being a part of this journey! :-)
Click here to subscribe to Stuart's weekly email.
SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here.
Work with Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
Follow Stuart on socials: Twitter/X and LinkedIn.
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
How you can use mean reversion to drive investment returns
When to not invest: 5 questions to ask
Are investment returns that important?
Investing in property in the outer suburbs - should you do it?
How to ensure your superannuation will be paid to your intended beneficiary
Don't buy property in this market...
Sophisticated borrowers to jump through fewer hoops to get a new loan
Warning: 3 reasons why negative gearing is in jeopardy
Active share investors failed to take advantage of last year's volatility
Pros and cons of buying property without a pre-approval
2021 Federal Budget - Financial planning opportunities
How to make the most of your super increase (after 1 July 2021)
Tax: How to minimise your largest lifetime expense
Don't underestimate the mathematical power of gearing
Investment opportunity: Is the share market switching to value?
Why property price growth will level out over the rest of this year
What is a holistic accountant? What value do they provide? When to use one.
Investment lending rules to be tightened this year
How to avoid being ripped off by a financial advisor: 3 simple checks
Bitcoin, (unprofitable) billion dollar stocks and other madness
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast