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056 | Q&A – Exiting a contract, crowdfunding, what’s the impact of global events on Australia Property Market and more

It’s Q&A time! This week on The Property Couch, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

  • Exiting a contract question from Alex: Hi, Just looking for some advice as the more I listen to the podcast (and read your book), the more I think my first IP buy could be better. I’m currently on a defacto visa so can’t buy anything but new properties which led me to an off the plan development in Brisbane. While its marketed very well and made out to be a great buy, it goes against all you talk about- high rise, buying through a unqualified salesman, no room to improve, rental guarantee, and high strata. At the time it looked good but the more I understand what makes a good investment, the more I think I could do with the $40k deposit I put down. My question is, is there any way out of the contract that won’t cost me? It’s not due to be built for another 2 years so wondering if I could ask the developer to renege on the contract without penalty or even onsell it for cost price. I’ve started putting away some cash every week just in case it comes in undervalue but would rather not be in the position of ‘hoping’ this doesn’t happen. Would appreciate any advice to help!
  • Crowdfunding questions from Carol: I have heard people talking about “crowdfunding” being the next property investment strategy. What is “crowdfunding” and how will it work?
  • Ownership questions from Rob: What property ownership structure should investors use when buying an investment property? Individual, trust, company etc. Is there a need to balance tax advantages with long term asset protection on this issue?
  • Global events question from Cookie: I have an economy/finance related question and would like to hear your discussion on it. As we step into 2017, the market has been flooded with negative sentiment news. Lots of countries are under the water as oil and other commodity price plummet. China economy slowdown and share and currency tumbled. In the middle-east you have ISIS terrorist and European country have migration crisis. The central federal government around the world response to the crisis with more and more quantitative easing money printing. I feel like 2008 all over again and this time the crisis is on a global scale.The question I want to raise here is what will happen to the property market and banking policies if the crisis come in the near future? Few friend of mine thinking that the property price will go down like during the great depression. Am I best to wait until the crisis come and then purchase undervalued asset? But if there is a crisis and bank run, will interest rate raise to double digit and banks tighten the lending? What happen to my home loan if there is a bank fail? European central bank is doing negative interest rate already, will Australia heading to this direction one day? How should I position myself now so to be prepare for the day to come?
  • Case study question from Chris: Brief Bio – 33 yrs old. married with one child, live in Sydney, workfull time. have three properties. two in Townsville (both rented) building one in Melbourne currently. Currently renting in Sydney as units where we want to live sell for $800 k to $1 million. However we can rent and invest. We put all our money into our offset and pay out the credit card at the end of statement period. We also have a full functioningPAYG withholding variation in place.
    • Question 1 – with the house I am building in Melbourne. Will I ever be able to claim back the GST I have paid in the build contract?
    • Question 2 – With one of my properties in Townsville I am concerned that our body corporate fees are way to high. We pay over $5k pa for fees. No lift, no pool in complex and it is a three story masonry construct building. How do I compare if this is the going rate in our market?

 

References:

 

If you like this Q&A episode (Exiting a contract, crowdfunding, what’s the impact of global events on Australia Property Market and more), don’t forget to rate us at 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/

020 | Science of Asset Selection – The Buyer’s Decision Quadrant

There are many factors at play when looking for an investment property, but did you know there’s actually a science behind selecting assets Ep 20 - science of asset selection Buyers Decision Quadrant 2

Yep that’s right folks! This science is called: The Buyers Decision Quadrant  

It’s made up of… 

  1. Price
  2. Location  
  3. Land proportion  
  4. Quality of Dwelling 

We’ll explain what each one means, and while the concept is quite simple, the real achievement is understanding which part of the quadrant you are willing to compromise on and which is non-negotiable.  

We’re also looking at some great case studies (one of which was a fictional case study…until this case study rang up Bryce to share her almost exact financial and personal story!!)… 

And comparing 1970s and 1990s apartments, and which one has fared better over time!  

Folks, it is rare for an investment property to tick all the boxes, and most of the time, you will need to journey through the Buyers Decision Quadrant to make the right decision for you!  

So keep this episode on repeat ‘cos we think this one will help with making those hard decisions again and again!  

 

Also, The Property Couch is hoping to get nominated for the Investor’s Choice Award 2015 for the category: Property Educator/Mentor. We would like to spread the word out on the podcast so that we can help more people avoid making bad investment choices and avoid buying the wrong asset. So if you think we are doing a good job, please do nominate us here.

Our details for nomination:InvestorChoiceAwards

Name of the Organisation: The Property Couch
Name of the Person you deal with: Bryce Holdaway and Ben Kingsley
Suburb: North Melbourne
State: VIC
Phone number: 03 9326 8900
Email address: [email protected]

 

Free Stuff Mentioned:  

  • Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away.  

    • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
    • This field is for validation purposes and should be left unchanged.
  • Check out Bryce’s article “Earn $2500 A Week at Retirement” which was featured in Money Magazine.  

 

Here’s some of the gold we cover…

  • 2:08 – What is the Buyers Decision Quadrant? 
  • 3:00 – Quadrant #1  
  • 5:25 – Quadrant #2  
  • 6:17 – How THIS can make up for the selecting the wrong property  
  • 9:25 – Listen to this cookbook analogy (Pure gold!) 
  • 11:50 – How Bryce’s fictional case study became non-fiction  
  • 13:53 – Quadrant #3  
  • 15:04 – Quadrant #4  
  • 15:22 – A real example: Family with 2 young kids   
  • 16:22 – The future of the Australian property market! 
  • 17:07 – Ask yourselves these questions before buying… 
  • 18:50 – Do you want to be an active or passive investor?  
  • 20:06 – Comparing 1970s and 1990s apartments  
  • 23:45 – If you’re checking out our podcast on our website…  

 

019 | Four Ways an Investor will Pay

So we’re saying…. swimming pools are bad?!  

Building off last week’s episode on the advantages of using a Buyers Agent, we’re looking at the 4 ways an investor will pay… 

  1. Buying the wrong _____  
  2. By falling into THIS habit  
  3. By ____too much  
  4. By acquiring THIS information  

We’ll be explaining why swimming pools can mean trouble for investors…  

(Just like Bryce’s elevator situation from his first investment – listen in so you don’t make the same mistake!)  

 Sharing personal experiences and client stories AND delving more into how the Property Investment Professionals of Australia (PIPA) can help provide credible advice!  

Now, it’s up to you which way you pay (hint: We think you’ll want the fourth option), but we’re unpacking what each method will mean over the long term.   

PLUS we’re highlighting WHERE you should avoid having an ego explosion and linking it to lessons learned in previous episodes.  

Is this the first episode you’re listening to? We recommend going back to the start and listening on 1.2x speed – we promise it’ll help you build your knowledge waaay faster!  

But if you’re up to date – congrats! Tune in now to best understand your options when buying a property!  

 

Also, The Property Couch is hoping to get nominated for the Investor’s Choice Award 2015 for the category: Property Educator/Mentor. We would like to spread the word on the podcast so that we can help more people avoid making bad investment choices and avoid buying the wrong asset!!

So if you think we are doing a good job, please do nominate us here.

Our details for nomination:InvestorChoiceAwards

Name of the Organisation: The Property Couch
Name of the Person you deal with: Bryce Holdaway and Ben Kingsley
Suburb: North Melbourne
State: VIC
Phone number: 03 9326 8900
Email address: [email protected]

 

Free Stuff Mentioned:  

  • Summary Video – Four Ways a Property Investor will Pay
  • RBA July 2015 Announcement
  • Check out the Property Investment Professionals of Australia (PIPA) to verify the professionals you’re working with!
  • Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away.

    • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
    • This field is for validation purposes and should be left unchanged.

 

Here’s some of the gold we cover…

  • 2:02 – The 4 ways on investor will pay… 
  • 2:45 – #1: Buying the wrong ______  
  • 3:20 – When you’re talking about return on investment, you’re REALLY talking about… 
  • 6:47 – Why swimming pools can be bad for investors  
  • 10:37 – Two personal examples from Bryce  
  • 13:08 – Don’t be like these investors!  
  • 15:23 – #2: By falling into THIS habit   
  • 16:42 – We hear this WAY too much… 
  • 18:29 – #3: By ____ to much  
  • 19:20 – Don’t let your ego get in the way during this time!  
  • 20:25 – #4: By acquiring THIS information   
  • 21:17 – Why you should ask for qualifications folks  
  • 23:09 – How PIPA can help verify the professionals you’re working with 
  • 24:39 – Check out these other FREE resources!  

 

008 | Investment Stock vs. Investment Grade

Well folks, after eight long weeks of waiting, we’ve FINALLY reached our most anticipated topic yet…Investment Stock vs. Investment Grade Properties! 

Did you know, there’s a higher percentage of investors who’ve sold their property for less than their original purchase price, than owner-occupied properties? 💸 

Yep, that’s sadly true. That’s why in today’s episode, we’re deep dive into what investment stock actually is, how it differs from investment-grade properties… 

...And how to know if YOU’RE being spruiked into buying stock!  

We’re also examining the science behind Investment Grade Properties, why depreciation shouldn’t be the end-all, and how becoming a borderless investor can benefit you!! 

PLUS, guess what milestone we’ve just achieved…

IMG_20150417_091810

 

 

 

 

 

 

 

 

 

A HUGE thank you all our listeners and to those of you who have left us a review! We love hearing from you so please keep those reviews and questions coming via the iTunes store or our Facebook page!

 

Free Stuff Mentioned:  

Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away. 


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
  • This field is for validation purposes and should be left unchanged.

  

Here’s some of the gold we cover…

  • 1:19 – What are some concerns for investors today? 
  • 2:10 – What is Investor Stock? 
  • 3:00 – Why Investor Stock can cause losses 
  • 4:50 – How to tell if your advisor has your best interests at heart 
  • 6:00 – The Enthusiastic Amateur (BE WARNED!)  
  • 7:43 – How to know YOU’RE not being sold Investment Stock! 
  • 8:35 – Don’t Invest in property for THESE perks! 
  • 9:06 – Why ________ shouldn’t be the end-all 
  • 10:07 – The science behind Investment Grade properties! 
  • 11:27 – How WE look for properties 
  • 14:00 – Why FOMO is an indicator NOT to buy! 
  • 16:33 – How to be a borderless investor  
  • 17:29 – Why investing is all about the ____!  
  • 18:22 – How you can stay educated on investing 
  • 19:20 – We’ve hit WHAT milestone?! 

 

007 | Studio or One Bedroom Apartment as an Investment Property

Folks, we’ve been sharing what we believe will make you into successful investors, but today, we’re turning the microphone over to you 

We’re answering one of the FIRST questions we ever received on our podcast from Matt:  

Ep 007 - Studio or One Bedroom Apartment as an Investment Property - The Property Couch - Property Investing in Australia

 

 

 

 

 

 

 

And what a great question it is! 🏠 

With the rise in apartments in CBDs around Australia, this is a common question we’ve been hearing, and we’re excited to get into the meat of it today!  

We’re breaking it down into HOW these two accommodations differ, the different types of asset classes you can invest in and the regulations around them… 

PLUS, we investigate density and spacing (More importantly, how it can create pesky glass ceilings for you)… 

Whether holiday homes are a better investment (Curveball, right?!)  

 And how lifestyle factors and the fading Great Australia dream impact our response!  

But before we let you jump into today’s episode, we’ve got a huge announcement!

We’re almost at 1,000 downloads!!

Thank you to all our listeners, we appreciate you tuning in each and every week!

And if you’re like Matt and have a question you’d like to ask, send us a voice message through our SpeakPipe (It’s the tab on the bottom right of this page!)

But back to today’s episode…

👉  Tune in now folks, there’s some evergreen wisdom in there!  

 

Free Stuff Mentioned:  

Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away. 

 


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
  • This field is for validation purposes and should be left unchanged.

 

Here’s some of the gold we cover…

  • 1:30 – What’s the difference between a studio and a 1 bedroom?  
  • 2:30 – Why one size doesn’t fit all!  
  • 3:30 – These are ALL factors which impact our answer  
  • 4:05 – Our banks and Valuers are shy around THIS  
  • 5:30 – What Ben predicts will change in Australian markets  
  • 6:18 – What do banks look at? (And how can this put a glass ceiling on YOU)  
  • 7:01 – Our 2 cents on studios  
  • 7:41 – ___ households are the fastest growing in Australia!   
  • 8:00 – How our culture plays a role  
  • 9:55 – Is the Great Australian Dream fading? 
  • 10:50 – How a shift in developer stock and lifestyle factors impacts your choice  
  • 12:20 – There’s no ____ value in medium/high density areas  
  • 13:10 – Mainstream vs non-standard property investing  
  • 14:10 – Why to avoid specialised lending (You need THIS strategy instead!)  
  • 14:45 – The issue with investing in holiday homes  
  • 17:10 – Our verdict: Studio vs. 1 bedroom!   

 

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