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Facebook Live Bonus Episode – Q&A on Property Hotspots Webinar

It’s here folks! Sorry it took some time. We thought we’ll organise it a little bit before broadcasting it to the rest of our fellow couchers.

So here’s the recording of the Facebook Live last week! This session is mainly based on the Questions we’ve received from our webinar, Property Hotspots and How To Find Them. Enjoy!

 

 

And here’s the list of questions that we’ve answered on the night along with the time stamps (in minutes). Hope it helps!

 

04:17
From Louise
Hey guys, LOVE your work! I’m curious why you look for very low stock on market rather than high stock on market.

If you were to go with buying when others a fearful and selling when others are greedy (Buffet strategy), then wouldn’t you try to purchase in a buyers market where stock on market is higher? Or am I interpreting the data wrong?

07:42
From Paul
When listening to all the experts they talk about buying properties under the median price.

From memory LS talk about Market Price?

10:06
From Jenny
Does the history on location score for the various measures only go back to 2016 Jan?
10:44
From Steve
Hey guys, having a sneaky watch during work…shhhhh. Can you please advise what the \”Statistical Reliability\” index is tracking and how this is determined? Thanks
12:42
From Ben
Some commentators mention a term called Established Capital Benchmark as an indicator of value of a property vs others in a certain area. Whilst this does not appear to be related to supply & demand, it may be of value to investors looking at a specific property in a suburb. Is ECB a legitimate indicator when looking at a particular suburb, and is there a place for it as a metric for investors?
16:39
From Ben
Is there a way to track the Location Score for a suburb over time? So a report based on date range showing variation in LS over time?
18:54
From Mandie
I’m keen to buy but not sure which is the best State to invest using my SMSF.
20:26
From Jaccob
What websites am I best to monitor to find major infrastructure projects, in construction or proposed? Cheers
20:40
From Todd
Do the high location scores (>80) match your professional opinions on where you would recommend to buy? For example, Risdon Vale looks to be a fringe suburb of Hobart?
26:2
From Nathaniel
Firstly many thanks for the data and overview and also the pod cast and book I have consumed all material you guys have produced. I guess the difficult part for me personally is finding a place to start when your looking at so many suburbs! I started my research by listing all suburbs within a 25km radius of the city I was interested in. Then included if the suburb had a train line from there I listed the location score of each suburb and the median price of properties, to try to narrow my searches to a handful of suburbs. I maybe suffering from analysis, paralysis, as I\’m still to close out a purchase. Some feedback on location score I\’d love to be able to filter on some of the metrics ie if I want to know what suburbs in Brisbane have the best rental returns only, or best supply ratio etc. I think it will help with filtering or pinpointing suburbs a lot better. P.s not a question just feedback, keep up the great work.
27:55
From Adam
On vacancy rates, rapid increases in vacancy (particularly units) makes sense from a supply perspective (new developments). What’s the driver for rapid decreases in vacancy rates (as per the Southbank example)?
30:18
From Aaron
Is it possible that the creation of this big data analysis system could artificially change the market? As investors shift towards buying or not buying in a certain location based on this information – does that artificially change the locations supply and demand?
33:56
From Yuna
If I am trying to get in the market for buy and sell strategy then do I still need to look at all of those indicators we have looked? Thank you so much. Love your podcast Ben and Bryce 🙂
35:37
From Anne
I’ve been using LS since your launch & I think it\’s fantastic. I was wondering if the you plan to further define the criteria in future, such as the ability to report a location score to include the number of bedrooms, bathrooms etc.
38:01
From Felix
If you pick a location with high location score – does that mean that the market is hot and you are potentially paying more as more buyers are interested in that market?

Once a property has been in a hot spot how does that effect the future growth. is the hot spot a temporary boost in appeal?

40:51
From Christopher
I am a little confused, I subscribed to LocationScore after listening to all of the property couch podcasts and reading the Book. However, I am confused. All I have heard via The Property Couch is about more blue chip properties. Yet on location score so many of the Top 250 suburbs are far from being blue chip suburbs. Can you please why there is such a difference?
44:25
From Gayan
Excellent webinar team. Just wondering if I should stop using the investment property magazine stats – or is this reliable data with maybe a few gaps if you are time poor and can\’t review each stat on interested suburbs? Keep up the great work.
46:12
From Karla
Thank you so much for this webinar, it was a great learning tool! You touched on the fact that there are some differing stats on opposing websites, and I have found this to be true in my research too. Personally, do you take an average of those numbers, or are there certain sites you trust more for this information?
47:01
From Karla
When you research a suburb that has some of these indicators missing (No results for vacancy rates etc) in their profiles, do you discount this suburbs? or how do you include them into your research?
47:56
From Karla
Does LocationScore take into account, future town planning/development, and other lifestyle factors in the suburbs to give its suitability score?
48:16
From Neisha
If a lot of these indicators are good by your estimates, doesn’t it mean that it is not necessarily a good time to buy into that market ie if stock on market is low, vendor discounting is low, OSI is high doesn’t it mean the market is quite hot and it may be prudent to wait?
48:47
From Chris
Could a downward trending Vendor Discount metric mean that a selling agent is adjusting the asking price lower over time to reflect a downtrend in recent sale prices?
49:15
From Nicole
Based on your examples, does location score include all States and Territories, as you only showed the East coast or areas down South and South WA
49:38
From Ashish
Is the research similar to other prediction reports ?
50:41
From Fred
Is there a real difference between fair market price and fair market value?
51:49
From Peter
Can you see what the weekly sales rate of non auction property

 

52:50
From Kosta
Crosssing Investment Loans is generally a no-no, would you consider it for cash-flow properties in order to save on LMI (particularly when capital growth is not on the cards)?

 

53:16
From Tom
You have negative gearing, and foreign investment trying to off shore their monies against potential political change. The 101 fundamentals of economics and markets, say equity markets doesn’t apply to property in most cases. People generally feel safer with tangible assets.
53:44
From Aaron
Hey guys, love the show. Would love to know your thoughts on investing in north west Melbourne at the moment (Sunbury, Diggers Rest, Gisborne area).

Prices appear to be growing quite fast and there is lots of new infrastructure however, there are a lot of brand new estates.

54:46
From Matt
Hi guys, if you had the option of buying a small one bedroom unit in an area close to city, (Randwick) or a 3 bedroom home further away (Gosford) what would you pick for a first home buyer ?
55:28
From Cameron
As technology increases and people have the opportunity to work from home. (I am a property valuer employed by an office in Brisbane though I work from home on the Sunny Coast), do you think there will be a shift to lifestyle locations and therefore values will take over the cities. eg the coastal areas within 2-3 hours of a city.
57:20
From Sean
As Buyers Agents, for a relatively conservative investor (plus young) is their a rule of thumb where you would say ok LVR is now ..% and we are happy for them to go and buy the next one.

Keen on capital growth plays at this stage, rather than yield.

58:20
From Jassi
Opinions of buying an IP and building a granny flat in the back to increase cash flow?
(getting rent from the home and granny flat)
58:51
From Martin
Hi guys! you are awesome, thanks for your insights.

When targeting auctions, how do you ensure that the value the bank will give to the house is close to the price you could pay for it?

59:38
From  Kimberly
Hi Guys! Thanks so much for all your great work. I look forward to your podcast every week! I purchased my first investment property 18 months ago and have had a really bad experience with my tenant.

What are your tips for getting past the bad mindset this can cause?

Episode 135 | Andrew Bogut – Why is this NBA Superstar Still Adamant on Investing in Property?

Andrew Bogut, NBA superstar & Australia’s greatest basketball player, is here!

Alright, folks — we promised an international sports star to end our month of Awe-Guest — and we are really excited to announce that he’s here!

Yep, let’s not hide it. We are entirely pumped for this show!

Because not only is Andrew a basketball legend — he won the NBA championship with the Golden State Warriors in 2014 – 2015, playing with THE biggest names and best athletes in the world, and even represented Australia at two Olympics with the Boomers — but also Andrew is a highly effective investor himself, savvy with his millions AND (we feel very proud about this) is a regular listener of The Property Couch!

 

The 7ft tall talent gives us insights into the world of NBA (and what it’s literally like to break a leg in his first game with the Cleveland Cavaliers this year), how he set up his investment portfolio and what’s in store after basketball:

  • Firstly, how on earth did this internationally known sports star end up on The Couch?
  • What’s life like as an NBA player?
  • What do the financial future and investment mindset really look like for most NBA players?
  • His experience with some of the Financial “Snakes” out there
  • Why is an NBA player interested in suburb development and gentrification?
  • Investing in supercars and commercial properties
  • How important are trust funds?
  • How was money spoken of when Andrew was a kid — did this shape how he sees his future?
  • Aside from the hype, what does an NBA schedule really look like?
  • Let’s be rule: who is the best player in the league?

 

Oh and (we had to ask) … where does Andrew store his Championship ring?

 

Also, Andrew did a walk through our office … hilarious to see the size difference, even for our tallest members.

The Stig (hiding from the spotlight in true Stiggy style) didn’t stand a chance!

 

 

 

 

 

 

Episode 119 | The Power of Compounding

Smart Money Management. Savings. Leverage. Compounding interest.

That is basically what we are talking about in today’s podcast as inspired by two of our listeners who wrote in. Now, rewind a few episodes, and you’ll find the boys quoting Albert Einstein famous words, “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” And today’s focus is all about getting the foundation RIGHT, finding the SWEET spot for your money management habits and understanding WHAT delayed gratification is all about.

One of the questions that we asked the listeners today is,

Would you take a million today or take a cent now and double the amount every day for the next 30 days?

Tune in to find out the numbers behind this question and here are the Free Resources mentioned in today’s podcast:

 

Just in case you’re wondering, here’s what the two listeners wrote in:

 

  • From Chris:

Hey guys. Love the podcast. I’ve told so many people about you guys. Out their flying the flag. One day I’ll probably knock on your door for a job. Seriously.

I find that one of the biggest advantages/disadvantages to building wealth can of be determined as to whether you are or aren’t on the same page as your partner when it comes to finance and household spending. I meet so many people in life who are either money savvy (to some degree) or they just aren’t. I love that we all have different passions in life, it makes the world go round, but wouldn’t it make life, relationships and wealth building easier if we all LOVED the concept of making our money work harder for us. We were all money SMART 🙂 *Thanks rubbish Australian education curriculum!

So my challenge is to you. Not an easy one. Do one podcast that in the most effective mainstream fashion, gives those that aren’t ‘interested’ yet, just a taste of how they MUST be money smart. Because…it is not actually that hard, how it can impact their lives so dramatically and how they should take a bigger interest in how to make their money work for them now if they want options of living a wonderful life. A life of experiences. Inspire them. One podcast I can make my loved ones listen to, to try flick that switch in them to take more control of their finances with joy. Like when I read Rich Dad Poor Dad. I know how amazing compound interest is, I know how amazing leverage is, but so many people just don’t. Therefore they don’t know why they should be delaying gratification. So they simply choose to spend.

In a time that is crazy busy for you guys building a business and living your own family lives, well done on giving so much back to society. You will never know how great an impact you have had on generations to come.

 

  • From Greg:

Hi Guys

I just watched the first video you’ve done with realestate.com.au. Congratulations on the partnership and great work as usual.

Just one comment on the first video. The savings/investment glass got filled with what was left over. This goes against many of the gurus (The Richest Man in Babylon, Robert Kiyosaki etc) who all say “pay yourself first”. So, in the video, the savings/investment glass should have its share first (whatever amount the person has decided) and then the other glasses divide up what’s left over.

Keep up the great work.

 

If you like this episode (The Power of Compounding), 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/

Episode 116 | Q&A – How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA and more

It’s Question and Answer time!  Now, we answered a few questions in the last episode but realised that we wouldn’t be able to respond to all of your questions at this rate, so we will be doing a Facebook Live very soon. Stay tuned for that!

On another note, there’s an exciting announcement at the end of this episode so make sure you stick around. And here are the questions that we would be answering today:

 

  • Question on Guarantor Loan from Kate:

My partner and I earn a combined gross income of roughly $130,000 annually. We have a small amount of savings – about $5000 (remember we’re getting married). But really nowhere near the amount needed for a deposit on our first home. Listening to your episode about guarantors got me thinking. Is it possible to borrow the full amount for an invest-grade property in Newcastle? Do banks really loan 105% with interest only repayments so that we can continue putting money into an offset account? Or are we better to wait and rent and continue saving?

My parents have been lucky enough to own a home in Sydney that has enjoyed the crazy house price growth. Their home would be worth at least $1.5 million at the moment. How long would my parents need to be guarantors – would it be until we had saved 20% of the loan? Perhaps in our offset account? Or would it be until the full amount was paid down?

My dad is from the generation of debt is bad and avoids risks. If you thought this was a smart move, do you have any tips on how to explain the risk/benefits so that he can understand?

 

  • Question on “To Hold or Sell” from Warren: Hi ‘couchers’, thank you for your entertaining, informative, and thought-provoking podcasts. I’d like to know what your thoughts are on rescuing a situation where someone has an investment property they’ve had for 10 years that isn’t performing. Cut the losses and look to replace it, or hang onto it? (I bought this place at age 20 on apprentice wages, it was all I could afford) Thanks! (specifics: paid $195k, current market value $240k, current rent $270/wk)

 

  • Question on Property Investing in WA from Daniel:

My partner and I recently bought a duplex (2 bedrooms, 1 bathroom, 2 living rooms, 475 m2) in Spearwood for $400,000. We have $112,000 equity in the property and $73,000 cash in our offset. Our salaries are $50,000 p/a for my partner and $71,000 p/a for myself, and we do not plan to have children for another 5 years. There is an opportunity to buy the second duplex (also a 2 bedroom, 1 bathroom, with a small granny flat at the back) for $385,000. The site is zoned R40 on 950 m2 (we see a 4 property potential), 3 km from the new Port Coogee Marina, the North Coogee development estate and the potential South Fremantle Power Station development bringing 6,000 new high-density houses/apartments into the area. We are 300 m from the local shopping centre and 5 km from the satellite employment hub of Fremantle (Bryce’s old hood). It ticks all the lifestyle boxes bar being near a train station (it is currently challenging to access the freeway to the Perth CBD). My two part question is:

  1. I am currently weighing up the opportunity cost. What is your inference of Spearwood as a potential “wave rider” suburb piggy backing off the growth of the coastal development? Do you feel that it would have long-term, consistent capital growth or a short term upswing, followed by a flattening capital growth and thus be better to buy into a blue chip area?
  2. As a first time investor, would it be wise to buy the adjacent duplex and land bank the asset, then develop the land after we have acquired several more properties in our portfolio or focus on the subdivision straight off the bat?

 

  • Question on Joint Venture from Tristan:o

I am in a bit of a bind and require some help. I currently have 4 properties. PPOR, a house in country VIC (Nathalia) that my father rents, a house in Frankston (that’s had 10% growth in 5 months!) and the front house on a sub dived block in Seaford.

The last 2 properties were purchased with friends as tenants in common.

I wanted to try and get another property with just my wife and so (as my friend has changed his plans a bit) I spoke to a well-regarded mortgage broker and they told me that the banks have changed the rules and that now they take the full loan amounts of the split properties and only half the rent!?

This destroys my serviceability. I am now not sure what to do, my friend is moving interstate and will not be ready to buy again for 2 years. (which I think my turn into 5 years) and I am keen to keep purchasing.

Should I concentrate on paying down the debt on my PPOR (280k worth 750k) or look at selling one of the joint houses (to gain the serviceability)?

 

And here are Free Resources mentioned in today’s podcast:

 

 

If you like this Q&A episode (How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA and more), 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/

Episode 115 | What Does The 2017 Federal Budget Mean To The Property Market?

What a week! Apologies for the podcast’s downtown earlier this week and thank you to those of you who wrote in to us. We had a system update and things didn’t quite work out as we wanted them to be. That aside, the 2017 Federal Budget has been released just a couple of days ago. So let’s talk about that.

There were a few proposals relating to the affordability issue and a couple more that aims at the property investors pool. But overall, this was not an overly exciting budget. It was a conservative one. Nonetheless, what impact will if have on property owners and the Australian Property Market in general. Some of the issues that Bryce and Ben discussed in today’s episode are:

  • The proposed changes to depreciation deductions for plant and equipment
  • Capital Gains Tax exemption for foreign and temporary tax residents
  • Investors’ travel expenses claims
  • The implementation of First Home Super Saver Scheme and is it a good idea
  • The expanded audit on overseas investors

If you would like to understand more about the 2017 Federal Budget, please check out this link.

We’ve also answered a few questions from:

  • Joel on the First Home Super Saver Scheme: Hi property couch crew! Since the website is down ill throw my question for the next Q&A here. A good one of the younger generation first home buyers as well as parents. My question relates to the announcement of the first home buyers saving scheme announced in the budget, with the tax break through superannuation. Being someone who has been taught in uni and at home by my parents not to touch my super and add extra payments where possible, is this scheme of accessing it for a house deposit reasonable? I see the tax break being a great idea but opening the idea of people taking there super to buy a house they cant save for rings alarm bells for me. Do i have the correct understanding of it all? Would you recommend another way?
  • Leo on property valuation: Hi Ben & Bryce – (and the Stig!), I cannot thank you enough for the endless amount of value that you provide for your listeners. Your content is conversational and easy to understand even for a first-time investor like myself.
    I have a suggestion that may also benefit other listeners. I have recently purchased my first investment at 23 years old. It is an existing (3 bed, brick and tile) property and I am in the process of planning a cosmetic renovation. My question is – When refinancing against an existing asset, do all property valuers have a set agenda when valuing your property? Since all valuers will have a different opinion on price, is there a similar set of factors they look at? (i.e Condition of kitchen, bathroom, flooring etc) – going on from this, Is there ways you can make your property more appealing to a valuer in order to gain a higher valuation to leverage onto the next investment? Thanks alot guys – I appreciate your work!
  • Derek on bookkeeping for investors: Something that isn’t as widely discussed in the field of real estate is book keeping. You guys mention the need to spend 10 hours or so per year to review each property in a portfolio. Can you dive into greater detail as to what exactly this entails? What sort of information do we need to keep track of and is that done through spreadsheets or specific software?

 

If you like this episode (What Does The 2017 Federal Budget Mean To The Property Market?), 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/

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