Ep 360: Factors to consider when setting a property budget

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In this episode, Campbell Wallace explores one of the most crucial steps in any property journey: setting the right budget.

He breaks the process into two key questions, how much you can borrow vs. how much you should borrow, and explains why borrowing capacity alone shouldn't drive your decision.

Campbell outlines:

• How to calculate a sustainable borrowing limit based on your surplus investable cash flow
• When it might make sense to borrow to your full capacity, especially for younger investors with a long time horizon
• Why property quality should trump quantity, and how to avoid false economies with your home purchase
• The risks of under borrowing or compromising too much on asset quality
• How other factors like super contributions, diversification, and age should influence your investment approach

He also warns against letting location dictate your budget and shares the golden rule: budget first, property second. Plus, a reminder not to ask your barber if you need a haircut—always be mindful of biased advice.

If you're thinking about your next property purchase, this episode will help you set a smart, strategy-aligned budget that supports your long-term wealth goals.

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Important

This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.