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Episode 127 | What’s Happening In The Property Market? – Chat with Nerida Conisbee, Chief Economist at REA Group

Happy AWE-GUEST! Yep, the month of “Awe-guest” — it’s a little bit witty isn’t it 🙂 — means only awesome things because we are releasing 2 EPISODES A WEEK WITH THE MOST AWESOME GUESTS for the entire month!

To kick start Awe-guest, we are stoked to announce Nerida Conisbee, Chief Economist at REA Group is here for the second time — you can listen to her first episode on which market to invest in 2017 here. With more than 20 years’ experience in property research throughout Asia Pacific, Nerida is THE professional to talk to when it comes to the economy and market conditions!

Sharing what she knows best with Bryce and Ben, Nerida and the boys cover:

  • How the cyclical conditions in Tasmania will effect property investors
  • What the changes are to foreign investment and how the effect our economy and your investing
  • How the USA’s economic growth is affecting the current Australian dollar on the Trade Weighted Index
  • Where Chinese buyers are choosing to invest and how it’s affecting the Sydney boom
  • What other long term affordability solutions out there
  • Whether or not rates will increase for homebuyers
  • What the banks will do if (when) the interest rate on mortgage loans increases
  • How interest rates and unemployment levels correlate with demand in a market
  • How to look at investment in Brisbane and the gentrification in Adelaide
  • What the “expectation problem” in Melbourne is and how to use it to your advantage
  • How to break into the market without huge levels of debt
  • What’s the current outlook is for Perth, Adelaide, Canberra and Darwin markets

 

Remember: We have a NEW Voicemail widget (the microphone on the right side of your screen) so you can leave us a recorded message that we will play on our Q&A! It’s a happy Awe-guest indeed!

And here’s the link to all the resources mentioned in today’s show:

  • CoreLogic’s latest report on Capital Gains Trend – Read here
  • Bryce’s appearance on ABC 7.30 on Housing Affordability (21-minute mark) – Watch here
  • The Code of The Extraordinary Mind by Vishen Lakhiani – Find out more
  • The 5C’s Lenders look at to Approve your Loan – Watch here

 

If you like this podcast: “What’s Happening In The Property Market with Nerida Connisbee, Chief Economist at REA Group”, 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: New Topics

Back with SEASON 2! The Property Couch + RealEstate.com.au

And we are BACK with Season 2!

Alright folks, here we go again! The Property Couch and RealEstate.com.au’s Season 1 was an absolute success. Our videos were viewed 557,000 times on Facebook and more on REA’s website. Now, don’t think that’s all we’ve got. We still have heaps more in the bank and are very keen to share it all out with you guys.

So here we go!

  • Investing in property can help you retire comfortably | Watch here >>
  • Need a home loan? Here are the 5 Cs the banks looks for  | Watch here >>

 

Don’t miss out the trailers as well!



And just in case you missed it, here are all the episodes of Season 1:

 

We’d love any feedback or suggestions on which videos you’d love to see! So get in touch with us here: info@thepropertycouch.com.au.

 

All the best,

Bryce, Ben and TPC’s Stig

 

 

Episode 126 | Q & A-ccounting with Frank Azzopardi—Tax Deduction, Capital Gains Tax, Land Tax and Aussie Expats

Alright folks! It’s Q & “Accounting” time! Yep, on the couch today we’re talking all things tax! Here to help us wade through the grey area is Frank Azzopardi from our friends (and accountants) at YK Partners. If the name sounds familiar, it’s because Frank joined us back at Episode 48!

So, we’ve received a couch-load of questions about tax lately, and quite the few of you have these questions because you’ve “temporarily departed” overseas—you’re Aussie Expats working in another country, but investing in properties back here. And as you know, this can be quite the pickle for tax purposes!

(The rest of you simply want to know what you can and can’t claim. Fair enough.)

Trying not to number-crunch the neurotransmitters in your brain, here are what B1 & B2 + Frank discuss:

  • Is there a tax-free threshold when you live overseas?
  • What is a Double Tax Agreement and what does it mean for you?
  • How does foreign tax credit work?
  • How do you offset tax loses?
  • Tax Talking, What’s the difference between a PPOR and an IP?
  • Can you claim tax on Lenders Mortgage Insurance (LMI)?
  • What really constitutes “Repair” or “Capital Improvement”?
  • Can you negatively gear a property as an expat?
  • What is the “6 Year Rule” of Capital Gains Tax?
  • Can you avoid Capital Gains Tax?
  • What’s the risk of loan in two people’s names (joint ventures)?
  • What’s the tax cut for your kids when they inherit your property?

 

Some of the helpful resources mentioned today are:

 

And… The questions discussed are:

 

From Andrea

“First of all I am loving the podcasts. I listen to them over and over. Secondly, as an Australian expat, living overseas long term but preferring to invest my money back home in Australia, are you able to do a podcast directed at Aussie expats wanting to invest back home but are not sure how to go about it? If you could talk about it or bring someone in? If you could talk about things Aussie expats need to be aware of ie—the different rules that apply regarding capital gains; tax depreciation; tax credits; services expats can employ to assist with the fact we can’t make a trip every week to attend viewings and sign papers. Having bought 4 places in the last few years, I have not completed my PIPA education yet—I am nervous about giving too much advice. Thanks and keep up the good work. I’ll be ready to buy again soon so will likely be in touch for assistance in this.”

 

From Salim:

“Hi Guys. I listen your podcast regularly and leaning a lot!! I have a question and have been searching for the answer for a while; but no luck so far (asked same questions to few accountants but all of them have different opinions)! I bought an investment property last year in Melbourne in July 2016 (that time I was living and working in Sydney) but very soon, I am moving to Melbourne and am living in my investment property as principal residence.
1. I paid around $7500 as LMI. Can I claim this for tax deduction?
2. Can I offset the interest in my Tax?
Any help would be greatly appreciated!! Look forward for your resonance. Thanks.”

 

From Nick:

“Hi guys! Really enjoy the podcast—you have both helped reshape my approach to property investment and I’m currently in the process of developing an investment strategy that suits the specific circumstances of my partner and I, rather than rushing into the often-scary Sydney market.
We’re a couple currently renting in Sydney with a combined income of over $220,000/year, around $80,000 sitting in the bank, no kids at the moment (but probably will within the next 2 years); and we’d like to get our foot in the door of the property market. One challenge we face is a high likelihood of moving overseas for work within the next 5 years. If we buy as owner/occupiers we’ll be looking at 2 bedroom apartments in the medium-priced suburbs of Sydney – right at the limit of our purchasing means. Should we move overseas for work, my understanding is that we won’t be able to negatively gear the property (since our income tax will be overseas). It does appear that some other countries have negative-gearing policies, although it’s not clear whether losses incurred from overseas investments are eligible and the rules differ from country to country. My feeling is that stretching to buy an apartment in Sydney for ourselves now could force us to sell early if we move overseas and the repayments are strongly outweighing the rental income—not a situation we want to be in.
If we instead look at rent-vesting and aim for a cheaper investment property in a growth location somewhere outside of Sydney, with a path to getting it positively geared in the short-term, this seems like a lower risk strategy that still gets us a start on our journey to a property portfolio. I’m hoping the principles you talk about have sunk in a bit and I’d love to hear if you think I’m on the right track.
I think our situation is quite common for a lot of young professionals. What tips can you give from both a tax and property selection point of view to the many Australians working overseas or planning to work overseas, who still want to invest in the Australian property market and start building a passive income for their futures?

 

From James:

“Hi Ben & Bryce. With the strategy of accumulating 3–5 good capital growth properties and potentially selling 1–2 in the long term future upon retirement, would we not be best to (if possible) move into each property for minimum of 12 months to avoid capital gains tax when the properties are sold? Thanks for such a valuable podcast I always listen to each episode a couple of times a week. Regard, James

 

From Simon:

“Boys. Love the book and am now an avid listener to your podcast each week. I have a land tax question for your next Q&A session that no one can seem to give me a clear cut answer.
My wife and I have a PPOR (Newcastle), as well as one current investment property also in Newcastle. Recently we have just purchased an apartment off the plan which is not due to be completed until late 2018 at the earliest.
Currently all three properties are in both our names—50/50 share.
My question is regarding NSW land tax which the 2017 threshold is approximately $549k. (Lets just say $550k for ease of rounding off)
Does this mean that as a couple we have a combined threshold of $1.1 million or despite having two people owning these properties do we still have to come under the $550k to avoid land tax as a couple?
If the latter is the case, what is the best way to minimise our exposure to paying land tax if we wanted to continue to purchase investment properties in NSW? Should our next purchases be in separate names?
Thanks for your help. Simon.”

 

If you like this podcast: “Q & A-ccounting with Frank Azzopardi—Tax Deduction, Capital Gains Tax, Land Tax and Aussie Expats”, 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: New Topics

Episode 125 (Part 2) | Everything You Need To Know About Picking The Next Hotspot – Chat with Jeremy Sheppard

Did we deliver on the gold in PART ONE?

Jeremy Sheppard, also the Director of Research at Select Residential Property, definitely has a serious knack for data collection and analysis, doesn’t he? (Side note: he actually calls himself the “property-data Nutcase”. Yep.)

Chasing the tail of Part One, PART TWO unpacks the remaining 3 of the 8 fundamental indicators that affect demand and supply.

The last 3 are:

  1. Vendor Discount
  2. Rental Yield
  3. Renters versus owner-occupiers

 

Yep. Did we warn you that this episode could be quite overwhelming? Stay with us.

It’s been no secret that we’ve been waiting A LONG TIME to share this episode with you because … LocationScore is finally live!!

 

So, what is LocationScore?

Jeremy met with The Property Couch’s Bryce and Ben back in 2016 and that led to their creation of this online property research tool.

All of the indicators you hear mentioned in this episode are exactly what LocationScore’s algorithm measures! They are the tools that sniff out supply and demand levels of all across the country, changing the face of Capital Growth, and investing, forever!

So, what if we could tell you the suburbs—right down to the specifics of houses and units—that are saturated in scarcity, landing you the BETTER LOCATIONS to increase your chances of making real returns in the long term?

This is what LocationScore, pioneered by Jeremy, Ben and Bryce, has been designed to do for you.

These indicators are the wires that power LocationScore. And with over 15,000 suburbs in the Australian market, Jeremy, Ben and Bryce continue to untangle them for you, hoping to fix the headache of finding investment grade suburbs and, in turn, crucial asset selection.

Let’s be honest: there’s obviously a lot to tell you.

We hope you like this one guys!

 

Resources mentioned in this podcast:

If you like this podcast: “Everything You Need To Know About Picking The Next Hotspot – Chat with Jeremy Sheppard”, 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: New Topics

Episode 125 (Part 1) | Everything You Need To Know About Picking The Next Hotspot – Chat with Jeremy Sheppard

We’ve been building this one up a bit haven’t we? But TODAY is the day we’ve got Jeremy Sheppard on the couch! Jeremy—himself an investor with 16 properties in his own portfolio—explains his years of passion in data collection, analysis and research into the levels of supply and demand (across every market and 15,000 suburbs in Australia). This passion pioneered the DSR Formula and the inception of DSRData.com.au.

 

How it works (nutshell):

Supply and demand are the only things that affect the future price of any good. If you know the exact level of supply and demand in a market, you can roughly predict its capital growth direction—up or down/making you money, or not.

But how do you identify the level, and how can specific variables influence the market’s movement?

 

There are 8 proven indicators that measures EXACTLY WHERE demand exceeds supply, honing in on where the capital growth lives.

And in PART ONE, 5 of the 8 key indicators will be explained by the boys. They are:

  1. Stock on Market
  2. Auction Clearance Rates
  3. Online Search Interest
  4. Days on Market
  5. Vacancy Rate (and how to calculate your own vacancy rate)

 

Just listen. We promise more gold than ever.

 

If you like this podcast: “Everything You Need To Know About Picking The Next Hotspot – Chat with Jeremy Sheppard”, 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: New Topics

Episode 124 | Q&A – 20 minutes Saved 20 Years of Regret, Investing in Airbnb, Property Spruikers, Buying Cash Flow Only and the Cost of Commission

Alright folks, it’s that time again … you ask, the boys answer!

After receiving a tabletop full of new topics, we’ve taken our que this week behind an anonymously-sent testimonial. Turns out an earlier podcast Why You Shouldn’t Invest in Property saved our listener from being “sold a lemon by a spruiker”! Yep. Unfortunately guys, the property spruikers are still out there, so Bryce & Ben will be answering similar questions on the red flags to look out for, like:

  • How to sniff out the so called “educators” and get your trust back
  • What your next move should be to fix bad property advice
  • How 20 minutes stopped 20 years of regret
  • What the consequences are with ‘fee for service’ and ‘working for commission’
  • Why the right asset selection can flip the spruikers on their heads
  • What the finance in the first two stages of property investing are
  • Why negative gearing is really only a moment in time
  • How long and how many properties do you need in the accumulation phase
  • What ‘buying only for cash flow’ is, and its risks and rewards
  • Investing in regional area and factors to consider
  • How to spot the difference between a genuine property educator vs a spruiker

and (SUPER TOPICAL)

  • Airbnb Investment: Is it worth considering them?

This is a goodie, especially for those who don’t want to feel the sting of bad investing!

(For those who want to know the website Ben talks about, it’s PIPA.)

 

The questions we’ve handpicked are from:

 

Listener Anonymous (as continued from their nightmare situation, which the boys will read out):

… We have about $200,000 of available equity, but we are now not sure what our borrowing power is as our previous broker was also linked to the spruikers and we don’t trust what they’ve told us. In your opinion, what should our next move be? Ideally we’d like to invest in Melbourne or Sydney but are not sure if it’s the right time to get into these markets.

 

Andy:

Can you guys talk about the finance in the first two stages of property investing? How do we go about understanding the numbers eg loans, consolidation and what is involved how everything works with the finance and loans, what to do with the loans from accumulation stages to consideration stages and onwards?

 

Jonathan:

Hi guys. I’ve recently started listening to your podcast and think it’s great. I’ve recently attended a seminar with ‘XYZ’ company, ‘XYZ’ Education they call themselves. Just wanted to know if you had heard anything about them? I understand there are many of these ‘mentors’ out there—those that are ‘fee for service’ and those that work off commission. These guys are the later. Any thoughts, comments would be greatly appreciated. Thanks in advance.

 

Kate:

What do you think about the idea of buying for cash flow only? I live in Adelaide and there are many areas within 60 – 90mins of Adelaide where you can buy quality character properties for less than $250,000. If only earning an average income, and planning to buy and hold for 15 – 20 years, do you think a larger portfolio of properties like this may be less risky than one or two closer to the CBD, which will have substantial holding costs?

 

Eddie Airbnb:

Hi. I am an avid listener to your podcasts and I started listening to them since 2015, but I have stopped for a year. I have recently bought another investment unit and have started listening to them again. I am currently at episode 51 and it is great because I can listen to them nonstop without having to wait for the next one to arrive in my podcast. Great work, I really enjoy your shows.
I have a question regarding Airbnb. I know it is not aligned with your property investing strategy and overall investing mantra. But recently, it has taken the property market by storm and there are many investors who are doing this to become positive cash flow. It is sort of the elephant in the room and there is a lot of talk about it out there, whether it is in high-rise holiday resort, or brick and mortar family homes. People are doing it. I have recently bought an apartment (yes: high rise, high density, tourist destination, lifts and caretaker) and so far I am cash flow positive, after netting all costs including cleaning, rates and body corporate. I only manage the bookings of the apartment and outsource everything to a cleaner who doubles up as my meet-and-greet host. I also have insurances to cover those times when needed, and I do everything above board.
I would like your views on how your look at Airbnb investment as part of an investment strategy—if it is something that you are interested at discussing.
Thanks.
If you like this Q&A episode (A Transitioning Market, Money, Habits, Tax Deductions and What It’s Really Costing You), 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://thepropertycouch.com.au/topics/

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