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Episode 155 | Think you know your A.B.C.D — How to Action The Four Pillars of Mastery in 2018!

It’s the day in our week we most look forward to… Happy Podcast Day, folks!

And, you betcha: this episode is ESSENTIAL!

Why?

If you’re a regular listener of the show (legend), you know that we go on and on about making sure you head back to our earliest episodes (pre-studio & pre-“professional podcast hosts”), because the information we shared in our glory days is vital. It’s foundational. It’s absolutely the name-of-the-game in property investing!

That’s why today we’re revisiting The Four Pillars of Mastery….. the ABCD of Property Investing. Because now, more than ever, they are going to determine the success of your property portfolio.

What are they again? (Click the link for their full episode).

ABCD. Memorise them. Make sure you’re intimate with every detail and action them in 2018.

 

Before we explain how you can achieve all this, we want to let you know that if you missed our Throwback Thursday this morning — either you haven’t checked your inbox yet or are yet to register for our free stuff — we gave you Dr Danika Wright’s slides, Controlling the housing asset bubble: Affordability, financial stability and regulation, which she presented at the Affordability Conference  late last year. So, if you’re interested in The Housing Bubble Debate or Supply and Demand, we suggest you check it out. You can access it here.

(And, remember: $5 is all you need to become a PICA Member!)

 

Right, what’s the deal with today’s episode?

  • What’s the latest with the negative gearing debate?
  • How can Ben’s latest acronym — SACI — influence your cash flow?
  • What is “open banking”, and how can changes in technology influence your cash flow?
  • What is the biggest risk with your cash flow?
  • What are the four categories of cost?
  • Conversational Commerce: Watch this space!
  • Is equity enough to land you a loan?
  • How do you get around the APRA lending changes?
  • Why do you need to have a borrowing strategy?
  • Looking towards the future, are there consequences of going P & I?
  • We’ll say it again: investment stock vs investment grade
  • What are fundamentals of asset selection?
  • What does defence protect?
  • What do you need to know about insurance that’s REALLY important?

 

Resources mentioned:

 

 

Episode 150 | Margaret Lomas: How this mother of 5 turned $80,000 into a multimillion dollar property empire

HAPPY 150 EPISODES!!!

Yep, that’s right, folks! Today officially marks our 150th episode……. and, boy, do we have a show in store for you.

First up, you’ll finally hear Stiggy speak! Uh-huh. This is one-of-a-kind stuff.

Secondly — and it’s only taken us 100 episodes to get her on — you will also hear from one of the best in the business, Margaret Lomas!

As you likely know, not only is Margaret the Director and Founder of Destiny Financial Solutions, a best-selling property author (8 books, mind you), but also she is an active property investor and qualified property investment advisor; hosting two weekly property investment shows, Your Money Your Call and Property Success with Margaret Lomas, both of which she creates and produces.

Indeed, she is a busy businessperson, also on the board of Property Investment Professionals of Australia (PIPA), past winner of Business Woman of the Year and — let’s be honest — the receiver of WAY too many accolades for us to list here!

Before we get into it — side note — Ben’s Webinar Impact of Interest Only Lending is finally out! He’ll tell you about it now.

 

So, what are you about to find out?

  • Margaret’s introduction into, and motivations behind, her property investment journey
  • What is the Rapid Debt Reduction method and how Line of credit works
  • Budgeting, tracking and managing your money
  • Why accountability matters and her recommended “Property Headspace” needed for commitment
  • The $18,000 risk it took to create her multimillion dollar property empire?
  • ****** A SCOOP FROM MARGARET LOMAS ******
  • Property development! Her experiences, mistakes and why she would do it again
  • Understanding council plans and how to deal with them
  • What is she working on in property right now?
  • Sell vs Hold — which one?
  • Practical tips you can use to source growth drivers
  • What other things you need to know about picking the next hotspot (and why she thinks public transport may not be as important anymore)
  • Margaret’s shift in mindset & how it’s shaped both her life and investment journey
  • Why is the age of people living in an area crucial to an investor?
  • What is the one thing she wants you to know? (!)

and

  • LIFE HACKS ALL ROUND!!!!!!! (Stiggy AND Margaret Lomas)

 

ps: And here’s the link to our practical but hilarious Facebook video! So much so that Bryce nearly spilled his drink! Watch below or click here to watch it

 

 

 

Episode 148 | Q&A WITH TWO GUESTS! Why We Support Movember, Where is Australia’s Best Performing Markets and What You Should Be Buying Now

Alright, folks …. This is a jam-packed episode!! 2 GUESTS, Q & A and some big announcements! So, where do we start?

First up … We have reached our Movember target of $10,000 big ones! A massive shout out to those who have donated, and a little reminder for those who haven’t done so yet: Donate $25 or more and get a FREE book! If we hit $11,000 Bryce will do his own Webinar TOO!!

(Ben’s webinar is coming up soon! You can access his Principle and Interest versus Interest Only Webinar AND his Working Out Your Retirement Shortfall Webinar by Downloading our Money SMARTS SYSTEM here.)

 

Speaking of Movember, our first guest is Sam Gledhill. He’s the Global Action Plan (GAP) Program Manager at Movember and he has some seriously interesting (not to mention seriously important) stuff to share with you! With a background in nuclear medicine technology — having been with the Foundation since 2012 and now responsible for the overall investments in Testicular Cancer — Sam will explain exactly why your donation is, literally, lifesaving.

 

Secondly, it’s Q&A day AND we have another guest! Not only are we answering your voicemail messages, but also we’ve bought LocationScore’s director (and data nutcase), Jeremy Sheppard, back to The Couch! This time Jeremy will to tell you the supply and demand for each State and Territory, including the one showing the highest potential for capital growth.

 

Here’s a snapshot on what we’ll be chatting about today:

 

First Voicemail (SpeakPipe) from “Anonymous”:

“I’m thinking of using a Buyers Agent to secure an investment property. I’m curious to know if I need to give them a Letter of Authority or a Power of Attorney, or both. Can you please explain the difference, and how I can use them? Thanks!”

 

Second Voicemail (SpeakPipe) from Stuart:

“Hi guys, great podcast. I’ve spent the last year listening to your podcast trying to get as many tips and advice about my property investment journey, which I’ll hopefully embark on very soon. Bit of a ‘spanner in the works’ though — I’d always envisioned starting out with maybe a 1 bedroom, around $300,000 – $400,000, maybe as a borderless investor (I currently live in Victoria). But our current house that we owner-occupy is looking a bit too small for us … my wife has proposed the question that we look at buying a bigger property. So the key to the question is, What are your thoughts on your first rental property actually being the one you currently occupy? I know you guys like detail, so I’ll shoot through to this: Currently it’s a 3 bedroom, 2 bathroom property in Chelsea, Victoria about 17 – 20 minutes from the train station and the beach. We bought it for about $505,000 in 2013, we owe $467,000 on it, we pay interest-only — about $1500 a month — and I think it’s worth about $650,000. So I’m really interested to know: what are your thoughts on a 3bd, 2bath house in Chelsea becoming our first rental investment? It’s not really what I’d mapped out listening to your podcast, but we’d probably have to buy a bigger, 4bd in Chelsea/Bonbeach area & I just want to see if this is a viable option in your opinion? I look forward to hearing your thoughts! Thanks!”

 

Third Voicemail (SpeakPipe) from Nicole:

“I’m from Canberra, woo! Looking at buying our 3rd property (1 PPOR and 2 IP). We’re looking at investing in a 1 br unit, which is 41 sqm in an old 1970s building, 5 km from CBD. It’s in Canberra, I’m aware of the land tax). $200,000 property with a $300 week yield. Husband can renovate it, which I think out ways the land tax issue. Question about banks’ lending money to under 50sqm. There seems to be banks that will lend these days, but going forward if we were to sell this — say in 20 years’ time, if we do sell it — do you think the banks are going to change their lending criteria on smaller places, considering most people, moving forward, will be living in small places? I guess I’m concerned that it’s going to be hard to sell in the future? What are your thoughts on this?”

 

Fourth Voicemail (SpeakPipe) from Nicole:

“My wife and I have about $180K to invest — we’re looking at buying our first home in Brisbane. Trying to choose between paying, which in our eyes is a premium, about the $600K mark for an older 3 bedroom home somewhere closer to the CBD like Moorooka or the convenient location of Mount Gravatt. Or: Paying early to mid $500K and getting a bigger, 4 bedroom home somewhere further away like Underwood or Springwood and using $120K of our deposit, leaving us about $60K towards our next property down the line. Again, it’s our first home, and we don’t plan on living in it forever. We just want to use this purchase as a stepping stone to our next property. To sum it up: Buying a property closer to the city, which will use up most of our deposit, versus by a home further away, leaving us with a good amount of money to jump into the market again down the line. Would love to know what you think.  I know that you say it’s good to be close to the city as a rule of thumb; but I am worried that this will prolong our next purchase considerably. Thanks guys.”

Episode 147 | Q&A – What’s Your Exit Strategy? Are You Retiring or Have You Bought a “Dud”?

It’s Q & A day BUT first things first … thank you!!

We have officially nailed our Movember target of $5,000!!!

And we’ve been busy parcelling The Armchair Guide to Property Investing for those of you who donated $25 or more (yep, for those who haven’t donated yet, you can still get a free book if you do this)!

PLUS, as Ben promised, he will be doing a Free Webinar on Working Out Your Retirement Gap … so stay tuned!!

In the first few minutes of today’s show, we also make an announcement on what happens if we hit our next target. (It has to do with Stiggy!!!)

 

But back to today’s Q & A on EXIT STRATEGIES, here’s what you’re in for:

 

The Q’s are as follows, folks:

 

Question from Lou:

Hi guys … long time listener (you take the edge off Sydney commuting, so thank you)!

My husband and I currently have six properties in NSW (nothing in Sydney metro … yet) valued at $2.3 million and LVR at 64% and gross yield of 8.2%.

We are both 40(ish) with two kids under 5. Our aim is to retire early with a $100K income. Reading your book and watching the videos and listening to the podcasts, I am wondering if retirement income is always based on rental income alone, or do you ever recommend borrowing off the equity as part of an early retirement strategy (with major buffers of course!). We’ve been very wrapped up in the acquisition phase that it’s hard to see where the end is especially when rents seem to creep up so slowly … I would love your thoughts on ‘living off the equity’ as part of a strategy.

 

Question from Chris:

Hi, I just started listening to your podcast. Can I get some advice from you guys regarding this case?

Mid of 2016, I paid 40k down payment (10%) for an off-the-plan 1 bed room apartment in Melbourne CBD (close to Melbourne Central.) The settlement is in 2018.

After getting some education from several property investment resources including your podcast (which I should have done first), I realised that I had probably made a rookie mistake. The purpose of this investment was tax deduction (another rookie mistake, I know).

Now, I still have some cash (around $200K) in my home loan offset account (saving and equity from a remortgage). If I want to start building a long-term portfolio (I’m 37, 2 young kids), what shall be my next step? Do you suggest I sell off-the-plan apartment before settlement? I have a very bad feeling about that off-the-plan apartment before settlement? I have a very bad feeling about that investment …

Look forward to your advice!

 

Question from Sonya

I’ve started listening to you guys (and yes, I tune out to the football banter) and yes, I have bought your book. My question is: What determines whether or not an investment property is a ‘dud’, and should you get out of it as soon as these signs start to appear? We bought an investment property in Thornbury, Melbourne. The area has had great growth in the last five years, average above 8%. Our property is a 2 bedroom townhouse, circa 1970s. It has grown about 4% pa and rent has not increased in the 5 years we’ve had it. Rental yield is about 4%. I believe the location is the problem as it is not a walk to the main hipster drag. We have cash flow to purchase another property, but could have more if we sell this ‘dud’. And we have a capital gains loss from a piece of land we sold a while ago, which we can use to offset any capital gain we may make if we sell the ‘dud’. Does this have signs of a property ‘dud’? Do we hold out and wait, or do we exit now, use the capital loss to our benefit and buy another property?

 

Question from Christian:

  1. I would love to listen to an episode dedicated to exit strategy and retirement.

These types of strategies, how to exit, how much income to expect in retirement etc.

  1. Are the days of large property portfolios over?? Given the current APRA restrictions and banks extremely conservative assessment rates, many investors with 3 – 4 properties are finding it difficult to borrow more for further purchases. Banks are assessing existing borrowings and P&I loans with rates at 7.5%. Rental income at 80% and negative gearing not taken into account. For an investor with 2 ­­– 3 properties or more, that kills your servicing to borrow more. Yes, it’s a first world problem, but we need to build a decent asset base to get the passive income stream down the track!

Thoughts??

Love your work!!

Episode 145 | 8 Reasons Why Vendors Sell Before Auction

Now… it’s Framework Time!! The last framework that we’ve unpacked was Episode 137 on Tips for Buying in Spring so we think we are a little overdue for another one.

The topic that we’ll be chatting about today doesn’t happen all the time, of course, but it does happen: Vendors sell BEFORE they go to auction.

Have you ever wondered why??

Today, we’re exploring some of the main reasons explaining an early sell in this situation. Because if you’re selling (side note: hopefully you’ve received professional advice about this), it pays to know which tactics could be lurking around the corner for you. Of course, if you’re interested in buying property, it saves to know how to negotiate a win before the bidding has had a chance to begin!

 

So, is selling before auction as clear-cut as we might think?

Yep, today we’re digging into the heart of it:

 

P.S. Folks, we’re doing Movember this month! If you would like to support the cause that helps tackle the serious issues affecting men’s health, feel free to donate here. (Bucket loads of good karma awaits you.)

P.S.S. Want more info on PICA? Head to www.pica.asn.au

 

 

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