What is the possibility of investing in property with the right strategy, in the right market, at the right time? Well, that depends. Now, we know this sounds really vague but in order to determine that, one need to ask if they have the right understanding in the first place? Because it is very dangerous if the perception of a right strategy or a right market is wrong and you go ahead and build a property portfolio based on your assumptions. For example, if Alex believes that capital growth is the right strategy and buying within 5km radius from Melbourne CBD is the right market, then he would be in a very tricky situation because the supply at the moment is quite low (unless he has a very deep pocket).

So in this episode of The Property Couch podcast, Bryce Holdaway and Ben Kingsley focuses on understanding what is considered as “the right market” and why it is important that you take the long view on where the market is going before committing to anything. Bryce and Ben will also be answering Maria’s question on cash flow management and an investor’s mindset. Here’s the question:

“Hi guys

Love the podcast and the book,  well-deserved success with both.

How do you draw the line between good cash flow management and depriving yourself of things you enjoy? My husband and I have always lived within our means and we now have two properties under our belt in Sydney, with plans to buy more. We’re in our thirties. But I’ve found that as we’ve come along the investing journey I’ve become increasingly preoccupied with spending less. I have no issues buying necessities, paying bills, or paying for things that benefit our investing or our health. I don’t blink an eye at spending on insurances, BA fees, etc, because those things are useful and necessary.

However, when contemplating discretionary lifestyle purchases, often costing less than $100 (you know, stuff you don’t need, but want) I spend weeks analysing whether to buy, to the extent that I’m spending too much energy on it. I guess I worry that if I spend $100 here and $100 there, I’ll just eat away at our cash buffers. What are your personal real life experiences with discretionary spending while trying to build a property portfolio? Did you and your family buy your toys and vices freely, or did you find yourself analysing every purchase?

I want to have the best cash flow position possible, but I want to have occasional frivolous luxuries too. I know I need some sort of mindset shift, but what does that shift look like?”

Some of the resources mentioned in this podcast:

• Webinar with Jane Slack-Smith and Peter Koulizos – Register here
• Game of Property Investing – Find out more here
• Facebook Live Chat (September 13) – Join here
• Property Investor Sentiment Survey by PIPA – Find out more here
• Episode 53 – The Money SMARTS System – Listen here

PS: And we’ve just achieved half a million downloads on the podcast! Thank you so much for all of your support and feedback. We will continue to provide good quality contents, ‘unpack’ more frameworks and case studies and answer your questions on all things property. If you are wondering what are the boys doing in this picture, this is what happens when Bryce Holdaway and Ben Kingsley heard that we’ve got half a million downloads on the podcast!