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Episode 165 | Royal Commission’s Role in the Lending Sector and Q&A on Improving Loan Serviceability, Sell v Hold Strategy and Investing in Shares

Just a heads up, folks: we’re tackling a couple of serious topics today!

Because, not only are we diving into the world of the Banking Royal Commission (and what they do), we’re also answering a few voicemail messages about how to best service your loan, what to look out for if you considering investing in shares and having a crack at the million dollar question: should you sell or hold??

Yep, Ben will be donning on his Chair of PICA hat to address some of these topics, especially when it comes to choosing your mortgage broker wisely and making sure, as property investors our assets and financial wellbeing are well protected!

 

As part of this, we will be dropping the “F” word… Fraud.

It should go without saying, DON’T go there… but if you find yourself taking dodgy advice, you could find yourself in boiling water too. And remember — for the folks that haven’t signed up yet — you can get an individual Membership of PICA for as little as $5 to lobby government regulations and help us get rid of the “bad eggs” and spruikers responsible!

 

So, let’s jump into the SpeakPipe Q’s:

Question from Nick (from New Zealand) about Selling or Holding a House and Land Package:

I purchased a house and land package in Landsdale, Perth in 2012. It’s next to the parks, next to the school; it’s a beautiful place with nice places around it — should I play the long game and hold onto it? Or should I look at selling it & placing my money elsewhere? It’s cash flow neutral, so it’s not costing me anything. It’s rented out, I’m paying the debt down through my own cash flow… the only other thing is, I’m at university so if I sell it, I won’t be able to get another place — I wouldn’t be able to get a mortgage — for 2 years until I graduate. I know it’s a million dollar question — but should I sell it or hold it?

 

Question from Will about serviceability concerns with current lending regulations:

We’ve got a current portfolio of currently 3 properties, looking to buy our 4th and final property in late 2018. I’m a little bit concerned about serviceability since the new APRA rules? have been brought in with the big banks. I was wondering if there were any practical things we could do to improve our serviceability? The second part to the question: Is there anything we can do to increase serviceability with second-tier lenders and third tier lenders?

 

Question about shares from Jamie:

Through your podcast, Rich Dad, Poor Dad. In the book, it talks about using shares to raise a deposit to purchase property. I was wondering if you were aware of any podcasts or books or any other resources that are similar to your own podcast but talk about trading shares? It’s something that is less tangible than property and I have a harder time understanding it.

 

p.s. Make sure to check out PICA’s website: www.pica.asn.au

p.p.s. And the video that we talked about is called, Becoming Warren Buffet.

 

Episode 164 | Q&A – How to Avoid Poor Loan Structure

It’s Q & A Day, folks!!

Off the back of last night’s webinar, “7 Deadly Sins of Building a Property Portfolio” we’ve got plenty of questions leftover that we reckon are going to help you with ALL THINGS LOANS and INVESTMENT LENDING!!!

Before it kicks off though … we’ve got a BIG announcement (well, big news for Bryce!!)… so make sure you keep an ear out!

So, we’ve got SIX questions to get through, which will help you in avoiding poor loan structure and more importantly, your planning stage of building a property portfolio!

 

Question from Mark:

I have a PPR mortgaged at the moment, as does my girlfriend. We wish in the future to turn both into investment properties and buy a further property to live in long term. Should we be spending money doing any works to the properties that we currently live in? Or should we spend the bare minimum and save every cent for our “together” house?

 

Question from Laudy:

I thought they’d changed the PPR loans and didn’t allow interest only loans anymore — how can this be done?

 

Question from Dean

Can you use equity in your investment properties to wipe out your PPR mortgage?

 

Question from Chris:

I understand the concept of “tapping into property 1’s equity” but HOW do we do it? Is a Line of Credit an appropriate method? Is this with the same bank or a different bank? Thanks guys, appreciate the help!

 

Question from Matt:

In the case studies it shows the debt on investment properties being paid off over time. When do you switch from IO to P&I? Should you refinance after 5 years to extend IO period as long as possible or switch to P&I when your cash flow allows?

 

Question from Shanki:

Regarding loan structure, can I use the equity from 1 property to pay the deposit for 2 separate investment properties? Is it similar to collateral?

 

 

p.s. Here are all the links for today’s podcast!

 

 

 

Episode 162 | Q&A – Second-tier Lenders, Brisbane’s units market and the order in Investment Assumptions (PLUS a special appearance from Jeremy Sheppard)

We have a couple of treats in store for you today, folks!!

Not only is it Q & A Day — we know: it seems like forever since we had one, and we love ‘em!! — we’ve also created A BRAND NEW SEGMENT, which is kicking off on the Couch TODAY.

Yep. Think property markets. Think sneak peak. Think data!

Actually, speaking of data, joining us for a portion of today’s episode (hint, hint) is Jeremy Sheppard! He’s our other third of LocationScore.com.au and the pioneer of the DSR Formula, which collects, analyses and researches the level of supply and demand across every market and 15,000 suburbs in Australia!

(You would have heard his insights back on Episode 125 | Everything You Need to Know about Picking the Next Hotspot — Chat with Jeremy Sheppard or on our last Facebook Live!)

 

…. What will be covered from today’s questions?

  • Should you invest in a Brisbane unit?
  • What are the pros and cons of second-tier lenders?
  • Are the assumptions about property investing making you confused?

Alright folks, before we kick off the questions, you’ll notice soon that all of them are voice recorded messages! Yep, we’re officially prioritising all of our questions that come in through our SpeakPipe widget! So leave us a quick, 60 second voicemail here!

 

Question about Investment Assumptions from Matthew:

“I’m wondering if you guys can take a moment and reflect on the investment assumptions in property, particularly on stuff like, “Hey, you should always buy in this order for capital gains: you should by a free standing house, and then a townhouse or a free standing house and a duplex and a townhouse and an apartment”… all of these investment based assumptions, which are general rules of investing in property. It’d be good to examine when they’re true and when they’re not true with different cases. I look forward to your answer. Cheers guys!”

 

Question about Investing in Brisbane Units from Pia:

“I’m a 31 year-old single woman from Brisbane with a budget of $360,000. My question is about the Brisbane unit market.
My priority is investment and I’m open when it comes to the location or type of property I purchase, but ideally I’d like to buy a place I can live in for the short to medium term, and a Brisbane unit is the best fit in that regard. I’ve been looking a 2br, 1 – 2 bathroom units in a 3 – 10km radius of the city in older boutique blocks. I’ve heard all of the warnings about the oversupply of apartments in the Brisbane market at the moment, but I’m wondering if this is the time when “Others are fearful and I should be greedy”? Where do you think we are in the market cycle? Are Brisbane units about to go up in value or are we still looking at another couple of years of downward or flat growth?

 

Question about Second-tier Lenders from James:

“My question is there have been a lot of media articles and posts around lenders outside of the big four banks, or second-tier lenders…. What are the Pros and Cons of using these lenders?”

 

 

And our chat with Jeremy Sheppard?

  • Why there’s not much data in January?
  • Recapping what is Online Search Interest and should investors be worry about the impact the season would have on the property market?
  • What’s the BIG NEWS on Perth??
  • Auction Clearance Rates and who are the outperformers and underperformers in this cycle?
  • How’s the month to month trend for each of the state?
  • What does Adelaide and Gold Coast’s property market trend have in common?
  • How about Days on Market data for February 2018?

 

P.S. Leave us a Voicemail Message here.

P.P.S. Want to find the best locations to invest in? REGISTER FOR A FREE WEBINAR here!

 

 

Webinar : Impact of Interest Only Lending

Thank you for your interest in the Impact of Interest Only Lending Webinar!

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ps: We’ve got heaps of other Free Resources on the site! Make sure to check them all out here.

Episode 096 | Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)

Joining us on our first online recording today is Prue Muirhead! Prue is the co-founder of Muirhead Property Management, the 2010 Property Investor of the Year, teaches property investment and property management at TAFE Adelaide and an active investor with 18 positively geared properties under her belt. So in today’s episode, Bryce and Ben will be chatting with her about how she build her positively geared property portfolio and:

  • Her journey as a sophisticated property investor, the hurdles she faced along the way and how she overcame that
  • Understanding different risk profiles and property investing risks when building a portfolio
  • The lending challenges faced by a self-employed and how she used the equity in her current home to build up her portfolio
  • What’s her investment strategy and her definition of manufactured property growth
  • The importance of continuous learning, research and taking initiatives to an active investor
  • Self-management versus using a property manager
  • Potential for upgrades and renovations from a property manager perspective
  • The mindset and preparations required for property developments
  • Mistakes made along the way and her top tips for other property investors

 

If you like this podcast: “Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)”, 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: http://tpcaustralia.wpengine.com/topics/.

 

 

 

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