Ep 360: Factors to consider when setting a property budget

Read full blog here. 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. Read Stuart's latest book? He's only got 19 reviews on Amazon so far, if Wealth by Design helped you, leaving one would mean a lot: https://www.amazon.com.au/review/create-review?asin=192318654X Run your own business? Check out Business by Design, Stuart and Mena's show on starting, growing and exiting a business, at https://www.businessbydesignpodcast.com/ Our most popular free guides: Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes. Download them here Got a question for the podcast? Email us at [email protected] Subscribe to my weekly blog: Stay connected here 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.