Context: Australian investor, retiring in Australia within the next 5 years
I am looking to change my AA to be more defensive, as I am nearing retirement.
I am looking at my existing AA across superannuation, investments outside super and an investment property to understand the current AA. I know that I am heavily Growth weighted, just not sure how much as I am not sure whether my investment property should be classified Growth or Defensive (or some ratio of the two). At the moment I have it as 50/50 and that gives me an overall AA of 75/25 towards Growth - hence why I need to rebalance to be more defensive.
Any thoughts would be appreciated
[Australia] Overall Asset Allocation: Investment property = Defensive or Growth?
- doctormister
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Re: [Australia] Overall Asset Allocation: Investment property = Defensive or Growth?
Equity interest in property is a risky asset.
Maybe that's what you call growth?
To the extent that it pays rental income, that is much more stable than equity prices.
I would tend to put investment property in a separate basket than my bond/ equity/ pension split. Look at it as a stable source of income (so your net need is smaller).
Maybe that's what you call growth?
To the extent that it pays rental income, that is much more stable than equity prices.
I would tend to put investment property in a separate basket than my bond/ equity/ pension split. Look at it as a stable source of income (so your net need is smaller).
- doctormister
- Posts: 13
- Joined: Tue Jun 01, 2021 6:47 am
Re: [Australia] Overall Asset Allocation: Investment property = Defensive or Growth?
OK. Makes sense, thanks