X

Episode 078 | Ten Biggest Risks when Investing in Property in Australia

Investing in property is considered as a relatively safe investment class but as with other types of investments, there are some downfalls that you need to be aware of. So in this week’s podcast, Bryce Holdaway and Ben Kingsley will be sharing their ten biggest property investment risks.
Ep 78 - 10 Biggest property risks by The Property Couch 4

They will be unpacking this list from a macro point of view such as factors that are beyond an investor’s control down to a micro level. Bryce and Ben will also be discussing some risk mitigation strategy that investors can apply when building their property portfolio.

The first macro risk is General Market and Economic Risks. Although each one of us contributes to the country’s performance as a whole, individually, we still can’t influence it much (unless of course, you are a multi-billionaire). So, if a country is performing poorly for example, during the GFC period, some property market would be affected, and this would impose some degree of risk if you are a property investor. Economic activities in a state level also could be a risk because this affects employment rate in the area and hence, your potential tenants as well the value of the investment property.

Listen to the podcast to find out the other 9 property investment risks.

 

Some of the resources mentioned in this podcast:

  • Webinar Replay with Jane Slack-Smith and Peter Koulizos – Register here
  • Facebook Live Chat (September 13) – Join here
  • Vote for us for the Reader’s Choice Award – Vote here
  • Episode 5 – Asset selection – Listen here
  • Episode 31 – Checklist to getting a great property manager – Listen here
  • Episode 53 – The Money SMARTS System – Listen here

 

Episode 077 | Right Strategy in the Right Market at the Right Time

What is the possibility of investing in property with the right strategy, in the right market, at the right time? Well, that depends. Now, we know this sounds really vague but in order to determine that, one need to ask if they have the right understanding in the first place? Because it is very dangerous if the perception of a right strategy or a right market is wrong and you go ahead and build a property portfolio based on your assumptions. For example, if Alex believes that capital growth is the right strategy and buying within 5km radius from Melbourne CBD is the right market, then he would be in a very tricky situation because the supply at the moment is quite low (unless he has a very deep pocket).

So in this episode of The Property Couch podcast, Bryce Holdaway and Ben Kingsley focuses on understanding what is considered as “the right market” and why it is important that you take the long view on where the market is going before committing to anything. Bryce and Ben will also be answering Maria’s question on cash flow management and an investor’s mindset. Here’s the question:

“Hi guys

Love the podcast and the book,  well-deserved success with both.

How do you draw the line between good cash flow management and depriving yourself of things you enjoy? My husband and I have always lived within our means and we now have two properties under our belt in Sydney, with plans to buy more. We’re in our thirties. But I’ve found that as we’ve come along the investing journey I’ve become increasingly preoccupied with spending less. I have no issues buying necessities, paying bills, or paying for things that benefit our investing or our health. I don’t blink an eye at spending on insurances, BA fees, etc, because those things are useful and necessary.

However, when contemplating discretionary lifestyle purchases, often costing less than $100 (you know, stuff you don’t need, but want) I spend weeks analysing whether to buy, to the extent that I’m spending too much energy on it. I guess I worry that if I spend $100 here and $100 there, I’ll just eat away at our cash buffers. What are your personal real life experiences with discretionary spending while trying to build a property portfolio? Did you and your family buy your toys and vices freely, or did you find yourself analysing every purchase?

I want to have the best cash flow position possible, but I want to have occasional frivolous luxuries too. I know I need some sort of mindset shift, but what does that shift look like?”

 

Some of the resources mentioned in this podcast:

 

Website - The Property Couch half a million downloadPS: And we’ve just achieved half a million downloads on the podcast! Thank you so much for all of your support and feedback. We will continue to provide good quality contents, ‘unpack’ more frameworks and case studies and answer your questions on all things property. If you are wondering what are the boys doing in this picture, this is what happens when Bryce Holdaway and Ben Kingsley heard that we’ve got half a million downloads on the podcast!

Episode 76 | Building a property portfolio after the boom – Chat with Veronica Morgan

 

This time on our Special Guest Episode, we’ve got Veronica Morgan on the Couch! Most of you would have known her as the co-hosts of Location Location Location Australia on Foxtel Lifestyle Channel with Bryce but when they aren’t filming, Veronica is the Founder and Principal of Good Deeds Property Buyers. She is also the Vice President of the Real Estate Buyers Agents Association of Australia (REBAA) and an active property investor herself.

So for today’s episode, the three of them will be talking about:

  • What does REBAA do and why did she join it?
  • Her transition from a selling agent to a buyers agent – why did she switch sides?
  • How is the regulation in Sydney differs from other states such as the gazumping law?
  • Her journey as a property investor – what motivated her to start investing?
  • How did the recent market boom in Sydney affect her role as a buyers agent
  • What are some of the principals and strategies when it comes to building a property portfolio after the boom
  • Her asset selection tips to finding an investment grade property
  • Some of the mistakes and lessons learn in her property investment journey

 

PS: We hope you enjoy watching the video and we would really like to hear what you think about it! If you like it, let us know and we will produce this more regularly. 🙂

 

If you like this podcast: “Building a property portfolio after the boom – Chat with Veronica Morgan”, don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

The Game of Property Investing

Learn to Play the Game of Property Investing Like a Pro!

We’re excited to be releasing this new educational video to further help you invest like a Professional.

In this video we set out to prove that not every property is created equal when it comes to investment and it’s our job to help you learn what makes for smarter investing!. We will highlight the factors and variables that expert property investors consider when selecting the right location and then the right property in this location. This research approach takes into consideration:
– Supply & Demand Variable
– Human Interest and Human Behaviour Influences
– The Practicality Test
– And more……

So what are you waiting for? Go ahead and register below and we’ll see you on the other side to teach you more about investing like a Pro!

 

Get Access to The Game of Property Investing Here!

  • This field is for validation purposes and should be left unchanged.

And if you have yet to subscribe to the podcast, you can subscribe here: Subscribe on iTunes | Subscribe on Android

 


Transcript:

Bryce: Hey there folks! I’m Bryce Holdaway, he’s Ben Kingsley and we are the hosts of The Property Couch which is the Insider’s Guide to Property Investing and today we want to show you how we helped people build portfolios for a passive income but it’s not just about investing on its own, there is so much to unpack Ben.

Ben: There is. It’s a game and there is a science to this game so what we’ve decided to do is we are going to show you how we play the Game of Property Investing. So you can see some cards behind us. We are going to talk to those cards and we are going to give you a bit of sneak peek in terms of how we play the Game of Property Investing aren’t we Bryce?

Bryce: We certainly are because we’ve got the view that searching is not researching. When it comes to residential real estate, there are no two properties that are the same. I always think that it’s like a fingerprint Ben, that even though there are subtle similarities they are always different. So just because you’ve lived in a property or just because you rent a property doesn’t necessary mean that you understand property. And we are going to make it a thing of the past Ben because once you’ve finished watching this video, hopefully, all of you would better understand a few things. Supply and demand and what else Ben?

Ben: Supply and demand, the practicality test, the human interest and human behaviour drivers, getting into the buyers’ psychology. We want to 10x your property investment results and we are going to show you how to do that. So why don’t we go back here?

Bryce: Alright.

Ben: So let’s take a quick look. Why do we do this Bryce? Why do we invest in property?

Bryce: Well ultimately it’s not to just impress our friends with how many properties we have. It’s to provide a passive income so that we can get two things back, our time and our experiences and that is what it’s all about.

Ben: It is. So we are talking about trying to create passive income. We are also trying to make sure that through research and through understanding the psychology of the buyer you can get an outperform result with your property investing. So, a little teaser here Bryce haven’t we? We just want to talk through this and then on the other side of this video we are going to unpack that in a greater capacity so that you can really get to see how two experts go about selecting the best location and the best property in those locations.

Bryce: That is very true Ben. So the number one point that we want to get through right here right now is very simple. The market is generally made up of owner occupiers and investors but the important thing for investors to understand is we want to be targeting properties that cater to this market here of the owner occupiers, not the investor market because quite simply, it is a numbers game. 70% of the market for any capital cities or any built up areas are generally made up of owner occupiers and roughly 30% is made up of investors. So it actually just makes sense to chase this sector of the market than this one Ben.

Ben: That’s right and all those people who listen to our podcast understand this because we take the time to educate you about the science that is property investing and this is no difference. When we get into the psychology, the human interest and human behaviour, we actually get to the next layer which is the practical reason why we invest and why they buy what they buy because they buy with their heart Bryce don’t they? They don’t buy with their head. So naturally they are the ones that are pushing the value higher. On the other side of this video, you would be able to see exactly how we go about doing this. Let’s give them a little teaser Bryce. Who are some of the players and what are some of the variables that we look at?

Bryce: For most people, the property is going to be driven by three variables. Economic activity, where am I going to earn my income. Human interest which is largely the things that people want to do on the weekend or the things that drive them to be in the suburb and human behaviour, are they time poor? Do they need to be close to the city, all those sorts of things? So economic activity, human interest and human behaviour.

Ben: That’s right and it also comes down to supply and demand. So there is a classic case of supply. If it’s in abundance, then technically prices won’t grow but if it is scarce, if there is some scarcity around what these people are looking to buy, ultimately you can find these nuggets of gold and get the best location and buy the best asset. That sort of links into this sort of concept. When we got these audiences, Bryce, if you want to jump out there, you can see basically, we’ve got different types of people looking to buy and connect. And they are trying to make decisions on the types of properties that they buy, the floor plans, the locations and the lifestyles drivers attached to that. So you can understand that there is lots of moving parts and on the other side, as I said before on this video, we are going to unpack it. We are going to see exactly how we put the Game of Property Investing together.

Bryce: So the question to you folks is this. Do you want to understand the Game of Property Investing? Because if you do, click on the link underneath here and we are going to take you to the next one. We are going to show you how all of this works, how it all comes together and if you can satisfy the practicality test, as Ben said before, chances are you will 10x your property investment results.

 

 

 

Episode 075| Q&A – RBA Rate Cut, Planning for Reduction in Income and Bidding Tactics at Auction

This week on The Property Couch Podcast, we are going through some of our listeners’ questions. But before that, Bryce and Ben will be discussing the 25 basis point cut passed on by the Reserve Bank of Australia early this week. How will this impact the Australian Economy, how much have the banks passed on and will there be any flow-on effect on the Australian household?

Here are the questions for today’s podcast:

  • Question on planning for a reduction in income from Matt: How do you plan for a reduction in income when you are still a reasonable distance from retirement and would it be wiser to maintain current income for long term potential or is there a process that could be applied?
  • Question on bidding tactics at auction from Adam: I was hoping in your next Q&A perhaps Bryce might be able to address the topic of bidding tactics at auction. Most of the tips and strategies you read amongst the property press propaganda are ridiculous things like dress in a suit and pull up in a sports car out the front. In your experience is there any value in these sorts of image approaches? or concepts such as ‘knockout bids’ and bidding late, or are auctions pre-determined events going to whoever was always going to pay the most. I know you will say the gold standard is to employ a buyers agent but I’d be interested in your tips for someone keen to DIY.

 

Some of the resources mentioned in this podcast:

 

If you like this Q&A episode (RBA Rate Cut, Planning for Reduction in Income and Bidding Tactics at Auction), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Instagram

×
the-property-couch-ebook-money-smarts

MONEY SMARTS SYSTEM

Plus We Will Also Notify You
When We Release New Episodes

  • This field is for validation purposes and should be left unchanged.

We Only Send You Awesome Stuff

×