87. From investment properties to ETFs: how Dave actually made the switch
Summary
Dave shares his journey from a property-heavy portfolio to ETFs, highlighting how investors often delude themselves by ignoring upfront costs and taxes. He discusses the pain of negative cash flow during flat markets and advises against delaying retirement for uncertain capital growth. The episode covers practical transition strategies, such as dollar-cost averaging proceeds, and warns against selling lagging assets due to mean reversion.
Topics discussed
Introduction: Transitioning from property to ETFs
Dave's journey: Hitting borrowing ceilings and seeking freedom
The psychological trap of chasing property growth
The process of selling properties and transitioning to shares
Dollar-cost averaging vs lump sum investing
The hidden costs and leverage realities of property
Impact of interest rates on property returns
How investors delude themselves about profits
Calculating the wealth needed to retire from property
Strategy for choosing which property to sell first
Market mean reversion: Melbourne vs Brisbane
Emotional attachment to assets and closing thoughts
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