EP 013: Paying Down Debt Vs Investing More Aggressively

This week… one of our viewers asked me about my PPR (principal place of residence)…

“Would you have done the same thing, all over again?”

I had to stop and think about it.



In the current environment…

With interest rates rising…

And low consumer sentiment looming over the market…

Would I do the same thing I did over a decade ago?

Well… first…

I have to give you some more context…

I paid off my PPR by my 30th birthday.

However…

In that stage of my life…

I hadn’t put any of my time or awareness into property investing…

At that time…

I was completely focused on making more money through business.

After I paid off my PPR…

Then, I allowed myself to focus on other assets outside of my business.

I started to think…

Well…

If I’m ever in a position where I can’t work…

How can I provide income for my family?

That’s essentially one of the first thoughts that started my property journey…

And led me to acquiring my current portfolio.

So… to answer the question.

If I was to do it again…

I would have chosen to opt in to leveraging debt, instead of paying it down…

And acquired investment properties along the way.

I believe that if I did that, my net worth would be substantially higher than it is today.

Unfortunately, at the time…

I had a lot of fear and anxiety around debt…

And I wanted security over my family’s home.

So, in consequence…

I paid an opportunity cost.

But…

It’s only a lesson I have learnt through hindsight…

In this week’s podcast episode, Grant and I are discussing the strategies we have chosen for our PPRs as well as what we’ve learnt throughout our journey…

So that you can best prepare and get the most out of your property investing journey.

PS: Tell me how you’re optimising your PPR!

Or alternately… Shoot me some questions that you’re struggling with so we answer them in future podcast episodes!

Episode Highlights:

00:00 Welcome to Property and Investing
03:15 Purchasing my PPR and paying it off 
04:37 The exhilarating feeling of paying off your home
06:20 The opportunity cost 
07:52 How my mindset shifted to property investing
09:11 Grant shares about what they consider the best thing for them 
10:35 If I could do it over again, would I buy a PPR or go rentvesting?
12:54 Your comfort spot/the sleep at night factor 
15:56 Developing a set of rules for property investing
20:15 Rule for avoiding having “too much house” 
23:09 Can your PPR be an investment property?
24:54 Building financial dependence outside of the PPR
26:14 Reassessing your goals as you go 
27:39 Life stage matters a lot

If you enjoyed this episode, please don’t forget to subscribe, tune in, and share this podcast!

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