Former NAB chief economist Alan Oster has defended his long-term property investment philosophy following online backlash that labeled his advice as "out of touch" with average Australians.
Oster, who retired from the National Australia Bank in March after more than three decades in the role, told news.com.au that his approach - “Buy a good property and hold it” - is a strategy he’s applied personally for over 40 years, not financial advice for everyone.
Criticism Over Privilege and Context
The backlash began after the Australian Financial Review quoted Oster's comments in a story about his recent property sale. His five-bedroom Brighton home reportedly sold for about $5.5 million - roughly double what he paid in 2012 - though Oster disputes that figure and did not provide the actual price.
Critics, including Alex Joiner, Chief Economist at IFM Investors, argued that Oster’s advice overlooks modern affordability struggles. “People struggling to afford a home don’t want to be told by someone living in Brighton with a Portsea property how to build wealth,” Joiner wrote on X (formerly Twitter).
Property analyst Cameron Kusher echoed that sentiment, noting that most Australians can’t access high-growth suburbs like Brighton and must buy in less desirable areas where property values haven’t surged at the same rate.
‘Not Financial Advice, Just My Philosophy’
Oster emphasized that he wasn’t offering financial advice, but simply sharing a personal philosophy that has worked for him over decades. He believes in buying the best quality home one can afford and holding onto it long-term - ideally for at least 10 to 20 years.
“Do your homework, get a building report, and don’t be rushed. Renovations can come later. Look for the best structure you can afford,” Oster said.
He also reiterated the classic idea of buying “the worst house on the best street” and improving it gradually over time - a slow-build approach he claims is accessible to more people than critics suggest.
From Humble Beginnings
Responding to claims that his strategy only works for the wealthy, Oster shared that he began his property journey with limited resources. He grew up in Newcastle and started his career at the Federal Treasury in Canberra - describing it as a "real struggle to survive."
His first home was purchased in Canberra in the early 1980s, with help from his parents. He described it as a “crappy house in a decent area.” Although he sold it before moving overseas, he maintained his buy-and-hold strategy after returning to Australia.
Economic Outlook: Rates May Fall in 2025
Looking ahead, Oster expects the Reserve Bank of Australia (RBA) to cut interest rates further this year. “You can count on three more rate cuts, assuming the global situation remains stable,” he predicted. He expects the official cash rate to settle around 3 per cent by early 2026.
The RBA's current official cash rate stands at 3.85 per cent, following a 25-basis-point cut in May. However, Oster does not anticipate another rate change at the upcoming July meeting.
While his advice may not resonate with all Australians, Alan Oster maintains that the principle of buying well and holding long-term remains a sound approach — provided it aligns with individual circumstances.
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