NRL legend Johnathan Thurston buys Townsville investment property
Two-thirds of Australians buying an investment property picked one close to where they live, and not in another suburb that could potentially outperform their home suburb in the long run, according to a new report co-authored by University of Sydney finance lecturer Danika Wright.
“The explanation for home bias … is a familiarity bias, lack of sophistication, knowledge or education and momentum behaviour,” the report harshly suggested.
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The academics argued that putting all the eggs in one basket was riskier for the individual investor and also the economy.
The home bias preference was seen when NRL legend Johnathan Thurston and wife Samantha recently expanded their already impressive investment portfolio, with another north Queensland buy. Indeed the former Cowboy, who won two premierships, bought just 50m from where the family have called home for the past six years.
They have spent $850,000 in Townsville’s Rowes Bay securing a three-bedroom, original 1960s home that had last been advertised as a $260-a-week rental in 2017. Their own house cost $1.2 million.
Thurston’s portfolio of six investment properties that cost $2.95 million does include an apartment in Leichhardt, bought when he was at the Bulldogs. He paid $370,000 for the one-bedroom unit in 2005. He sought tenants at $470 a week last month.