Thursday, 25th February 2016
The media world was abuzz this week with the story of Kate and Matt Moloney, once crowned investors of the year and now facing bankruptcy. Their case was held up as a caution against property investment, with talk of property bubbles bursting and the lingering debt they now have hanging over their shoulders.
The Moloneys' experience - subject of a newly released book - has been highlighted as an ever growing possibility for residential investors, but it all seems long on hype and short on facts when it comes to those who've made responsible portfolio decisions.
With all due respect to the Moloneys (and only the knowledge of their situation is what I've drawn from newspaper reports) it seems they made many rookie errors, which illustrates the danger of investing without professional advice.
In an article quoted on domain.com.au, the Moloneys bought 16 properties in mining towns. Hang on, I'm going to repeat that - 16! I stress to my clients that a spread of assets amongst different areas in Australia is essential for maximum portfolio growth and - wait for it - as a risk management strategy.
My very general advice to new and investors is as follows:
Until next time,