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Episode 041 | The Moving Parts of Cash Flow Management (Money & Wealth Accumulation Model)

Money & Wealth Accummulation Model - FinalThis week on The Property Couch, Bryce and Ben discuss about the moving parts of a cash flow management strategy. As compared to Episode 3 (Four Pillars of Mastery – Cash Flow Management) where we talked about the flow of money, this podcast is mainly about the Money and Wealth Accumulation Model. It includes the variables and assumptions to consider when modelling sophisticated wealth outcomes. As this topic can be fairly detailed, we strongly recommend our listeners to have the diagram open while listening to the podcast.

We will also be answering this question from Bradden:
You often refer to paying down debt during your talks as a means of creating passive income. Is there a strategy of paying down debt on your rental properties? Is it just as simple as paying P&I? Do you only start paying down debt once you have finished your accumulation phase? Does this only happen when you start to sell one of your properties? I’m interested in hearing your thoughts on paying down debt.
PS: Ben’s not a bad bloke for a Collingwood supporter.

 

This topic is also discussed in Part Three (Section 10) of our book: The Armchair Guide to Property Investing. For those who have the book, you can also refer to page 219 for additional reference. And here’s the video mentioned in the podcast:

 

 

Free resources mentioned in this podcast:

 

If you like this episode, 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/

CPA Public Practice Conference in Lorne – How to Plan to build a Passive Income For Life with Property Investment

 

In Episode 34 of this podcast, Bryce and Ben answered one of our listener’s questions regarding the estimated growth and returns that we used in all our property plan production. To further assist with the explanation, we thought it would be best to share this presentation done by the both of them at the CPA Australia Public Practice 2014 Conference in Lorne.

Watch this presentation and please do let us know if you have any question by email at info@thepropertycouch.com.au or fill out the form here.

 

 

Episode 016 (Part 2) | 5 Essential Steps to Property Investing in Australia

Ep 16 The Property Couch - 5 Essential Steps to Property Investing in Australia Part 2In Part 1 of the 5 Essential Steps to Property Investing in Australia, Bryce and Ben talked about the Clarify, Evaluate and part of the Planning stage.

To recap, Clarify is collect information about yourself and to set your goals from the next five years up to retirement. Some of the questions that you need to answer are why invest in property, how much are you spending each month, how much savings do you have, how much do you want to retire with and so on.

Evaluate is to analyse these information and numbers that you’ve collected and pinpoint the shortcomings and identify the opportunities. Think about how you can save more, what is the status of your cash flow management, can you adjust your lifestyle choices to buy an investment property, is it time to refinance your home loan and more.

In this part of the 5 Essential Step to Property Investing in Australia, we move on to Plan, Implement and Manage. We all know that Planning is not easy especially if you are planning 30 years ahead. But if you don’t have a plan, you plan to fail. What’s more, you need to be able to implement your Property Portfolio Plan confidently and make sure you arrange regular review to determine how you are faring.

 

Resources mentioned in this podcast:

 

If you like this podcast: “5 Essential Steps to Property Investing in Australia – Part 2”, don’t forget to rate us at 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/

Episode 016 (Part 1) | 5 Essential Steps to Property Investing in Australia

Ep 16 The Property Couch -  5 Essential Steps to Property Investing in AustraliaIn this episode of The Property Couch, our hosts think it is unfortunate that money management and smart investment planing are not part of the curricular in Australia’s school system. Bryce Holdaway and Ben Kingsley re-emphasize the importance of understanding the fundamentals of money management and Property Investment. For those who have just stumbled on this property investing podcast, we strongly recommend you to check out our previous episodes especially the Four Pillars of Mastery series  because that’s where we discuss about the basics of this type of investment. In this episode, Bryce and Ben extend from that series and explains the Five Essential Steps to Property Investing in Australia.

All professionals need a process to follow and for Property Investors, in our view, this is the process to follow. Start listening the podcast to see how you can apply this process to build your own property portfolio.

>> Continue: Part 2 of 5 Essential Steps to Property Investing in Australia

 

Resources mentioned in this podcast:

 

Thanks again for all of our listeners out there. If you like this podcast: “5 Essential Steps to Property Investing in Australia – Part 1”, don’t forget to rate us at 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/

Episode 010 | Tax Depreciation (Case Study)

Here are the Case Studies mentioned in Episode 010 | Tax Depreciation of The Property Couch:

Tax Depreciation Case Study 1:

A $600,000 – $700,000 period home with a rental income of $22,880 per annum

An investor owns a period home purchased for between $600,000 and $700,000 with a rental income of $440 per week.
Expenses for their property such as interest, rates and management fees totaled to $40,950. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $9,880 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor to turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $3,655.
The following scenario shows the investors cash flow with and without the depreciation claim:

Tax depreciation case study 1 - The Property Couch
This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $219 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $149.

 

 

Tax Depreciation Case Study 2:

A $400,000 – $500,000 older villa with a rental income of $21,060 per annum

An investor owns an older villa purchased for between $400,000 and $500,000 with a rental income of $405 per week.
Expenses for their property such as interest, rates and management fees totalled to $29,610. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $7,930 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $2,935.
The following scenario shows the investors cash flow with and without the depreciation claim:

Tax depreciation case study 2 - The Property Couch

This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $104 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $47.

 

Case studies provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.

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