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Which asset class will be the real winner of the pandemic?
Investing in business is risky at the best of times, so where might you be better placed to put your money? An investor weighs in.
Which asset class will be the real winner of the pandemic?
Investing in business is risky at the best of times, so where might you be better placed to put your money? An investor weighs in.
The co-founder and CEO of Freedom Property Investors, Scott Kuru, has reflected on the question: Where should you invest during and post-pandemic?
From his perspective, the answer’s definitely not in business – since it’s “always been a wild horse, one with scope to promise a pot of gold at the end of the rainbow or better the light of success at the end of the dark tunnel of start-up risk and looming competition”.
While conceding that many business genres do have strong foundations, Mr Kuru said they are all to be considered with caution.
“Any size business is at liberty of market trends and unexpected shifts such as COVID-19 and its impending aftermath, where many businesses have taken a big hit and are yet to suffer for time to come.”

He argued that businesses will always be subject to such unexpected forces or changes in market climate “and hence are volatile as an investment”.
Instead, Mr Kuru lauded residential property for its continued upholding as “a stable place in any property market”.
“One just needs to look at the rows of empty retail shops and the change of use of warehouses and office spaces to see that residential property remains as a safe investment staple.”
According to the investment expert, “Australia stands strong as a solid and sought-after investment location globally when it comes to residential real estate”.
“Evidenced by the unwavering inflow of foreign investors seeking our residential properties, sticking to home shores is certainly the way to go.”
He commented that while opportunities do exist everywhere if you know how to identify them, “none are as certain as the demand for residential property”.
“With a population growth of 1.8 per cent per annum, our current population of 25.5 million is expected to surpass 37.6 million by 2050. And, as we already have a housing shortage and the lowest interest rate on money you will ever have, it does not take much to work out that residential property here in Australia is a safe haven to invest in.”
“Only if you know just what to buy,” he acknowledged.
Mr Kuru flagged that worthwhile investment locations “must of course tick crucial due diligence boxes, such as proximity to transport, shopping, schools and work centres”.
“There has to be active or planned infrastructure spending and notable population growth before even looking at the type of investment to consider. Only then, assessing what kind of properties holds maximum tenant and buyer appeal to truly make it the next high-growth location,” he said.
The investor warned that most investors who rush for reduced sales or buy ad-hoc based on price alone, without the deeper considerations of thorough due diligence, often find themselves holding non-performing investment properties.
But “no matter what the financial climate, what the trend of the day or which segment of industry or business is having its high-growth heyday, people will always have to live somewhere and will need to rent or buy a roof over their heads”.
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