Aussie Firebug

Ask Firebug Fridays - 12


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www.aussiefirebug.com/aff/Question (2:48)What are your thoughts on being over-exposed to the Australian economy?It's something I'm grappling with in my portfolio allocation at the moment. So much of the ASX top companies are tied to the Australian housing market and economy - in fact, so much of our economy is tied to the housing market - any kind of pullback will not only affect house prices they will have wide-ranging implications on ASX200 / ASX300 companies, jobs, Government taxation receipts, everything! So this is what worries me.If we really do believe in diversification, then we should be diversifying across asset classes internationally, not within one very small economy. Diversification across direct property investment and buying an LIC or ETF that focus on Australian shares is not real diversification, given these assets are inextricably linked.Interested to hear your thoughts.-DetrimentalQuestion (13:00)Hi,When does purchasing your own house PPOR come into your future plans? Are you planning to move into one of your rentals? How would purchasing a house and potentially having kids affect your FIRE plans?TanyaQuestion (23:07)Hey Mate,I have been reading your blog. I see you mentioned to be wary of mining towns. I was considering investing in Gladstone since the property prices are rock bottom. However, I get mixed views from everyone I ask.What are your thoughts?Luke
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