Is Property (Still) The Holy Grail For Doctors And Dentists?
It is no secret that doctors and dentists have a love affair with property.
However, all too often property investment and negative gearing is seen as the holy grail of wealth creation, and aggressively promoted by various medical accounting and financial planning groups.
My belief is that there is a tremendous amount of risk involved with pursuing this single strategy.
Whenever there is a property bull market, like we saw in Sydney recently, everyone seems to think it is different, and the bubble wont burst this time…but it always does.
The signs are already there, as per the reports in the press (AFR of 4-5th August):
– more than half of Millennial property investors are stressed by their finances;
– property prices are falling and vacancies are increasing, rents dropping;
– over the next 5 years, $480 billion or 1/3rd of all home loans will be rolled over or converted to principal and interest.
Am I saying property investment is bad? Not at all, but it needs to be part of a well-diversified wealth creation plan.
If your adviser or accountant is advising you to keep purchasing property and take on more debt, beware.
More often than not they will be taking commissions/referral fees on the property sale and associated loan, as well as any increased personal insurances you may require.
Don’t be afraid to seek a second opinion. I would be happy to offer this to you free of charge.
Email me at Yves@affluenceprivate.com.au
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