Guest: Chris Bedingfield, Quay Global Investors.
Australian housing is expensive. Hardly a shocking statement. But if you ask a bunch of investors and economists why it’s expensive, you’re bound to get a wide range of answers. Most of them will refer to credit availability in some way. A few might mention a lack of supply and demographics, and almost all of them will discuss interest rates.
But according to Chris Bedingfield, Principal and Portfolio Manager at Quay Global Investors, there’s a simple and absolutely critical reason that almost everyone overlooks. Indeed, in more than a decade of closely following markets, I’ve never heard this view put forward.
It all boils down to the replacement cost – or the cost of building a new home. Sure, there’s a premium for being closer to the city or the beach, and various other niceties that come with expensive inner suburb houses. But it’s the cost of building new property in Bankstown or Craigieburn that ultimately drives prices in the rest of the city in the long term.
As The Rules of Investing podcast returns after a break, Chris explains why it’s so expensive to build new housing in Australia, shares some of the best opportunities in real estate today, and he tell us why he thinks many people are overestimating the impact of working from home.
Trailer: Giselle Roux
The dividend doctor gives his prescription for investing in 2023
Trailer: The dividend doctor gives his prescription for income investing in 2023
8 mega cap stocks have carried markets in 2023. Here’s what comes next
Trailer: 8 mega cap stocks have carried markets in 2023. Here’s what comes next
The goldilocks buying opportunity is *almost* here in fixed income
Jun Bei Liu: Top stocks for today’s markets
Trailer: Jun Bei Liu, Tribeca Investment Partners
This fundie found Afterpay at $6. Now he’s found his next opportunity
Trailer: This fundie found Afterpay at $6. Now he’s found his next opportunity
Is this the least crowded opportunity in the market today?
No lithium, no worries for this outperforming small cap manager
Trailer: No lithium, no worries for this outperforming small cap manager
James Gerrish: Low risk equity returns are back (and these stocks provide them)
Why Morgan Stanley is overweight passive in this volatile environment
John Ayoub reveals WAMs playbook for volatile markets
Trailer: The global banking crisis has changed the game, and this is how to play it
Alan Kohler: We’re in for a recession we didn’t need to have
Trailer: Alan Kohler - We’re in for a recession we didn’t need to have
From a kosher butcher shop to one of the country’s largest family offices
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