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Episode 124 | Q&A – 20 minutes Saved 20 Years of Regret, Investing in Airbnb, Property Spruikers, Buying Cash Flow Only and the Cost of Commission

Alright folks, it’s that time again … you ask, the boys answer!

After receiving a tabletop full of new topics, we’ve taken our que this week behind an anonymously-sent testimonial. Turns out an earlier podcast Why You Shouldn’t Invest in Property saved our listener from being “sold a lemon by a spruiker”! Yep. Unfortunately guys, the property spruikers are still out there, so Bryce & Ben will be answering similar questions on the red flags to look out for, like:

  • How to sniff out the so called “educators” and get your trust back
  • What your next move should be to fix bad property advice
  • How 20 minutes stopped 20 years of regret
  • What the consequences are with ‘fee for service’ and ‘working for commission’
  • Why the right asset selection can flip the spruikers on their heads
  • What the finance in the first two stages of property investing are
  • Why negative gearing is really only a moment in time
  • How long and how many properties do you need in the accumulation phase
  • What ‘buying only for cash flow’ is, and its risks and rewards
  • Investing in regional area and factors to consider
  • How to spot the difference between a genuine property educator vs a spruiker

and (SUPER TOPICAL)

  • Airbnb Investment: Is it worth considering them?

This is a goodie, especially for those who don’t want to feel the sting of bad investing!

(For those who want to know the website Ben talks about, it’s PIPA.)

 

The questions we’ve handpicked are from:

 

Listener Anonymous (as continued from their nightmare situation, which the boys will read out):

… We have about $200,000 of available equity, but we are now not sure what our borrowing power is as our previous broker was also linked to the spruikers and we don’t trust what they’ve told us. In your opinion, what should our next move be? Ideally we’d like to invest in Melbourne or Sydney but are not sure if it’s the right time to get into these markets.

 

Andy:

Can you guys talk about the finance in the first two stages of property investing? How do we go about understanding the numbers eg loans, consolidation and what is involved how everything works with the finance and loans, what to do with the loans from accumulation stages to consideration stages and onwards?

 

Jonathan:

Hi guys. I’ve recently started listening to your podcast and think it’s great. I’ve recently attended a seminar with ‘XYZ’ company, ‘XYZ’ Education they call themselves. Just wanted to know if you had heard anything about them? I understand there are many of these ‘mentors’ out there—those that are ‘fee for service’ and those that work off commission. These guys are the later. Any thoughts, comments would be greatly appreciated. Thanks in advance.

 

Kate:

What do you think about the idea of buying for cash flow only? I live in Adelaide and there are many areas within 60 – 90mins of Adelaide where you can buy quality character properties for less than $250,000. If only earning an average income, and planning to buy and hold for 15 – 20 years, do you think a larger portfolio of properties like this may be less risky than one or two closer to the CBD, which will have substantial holding costs?

 

Eddie Airbnb:

Hi. I am an avid listener to your podcasts and I started listening to them since 2015, but I have stopped for a year. I have recently bought another investment unit and have started listening to them again. I am currently at episode 51 and it is great because I can listen to them nonstop without having to wait for the next one to arrive in my podcast. Great work, I really enjoy your shows.
I have a question regarding Airbnb. I know it is not aligned with your property investing strategy and overall investing mantra. But recently, it has taken the property market by storm and there are many investors who are doing this to become positive cash flow. It is sort of the elephant in the room and there is a lot of talk about it out there, whether it is in high-rise holiday resort, or brick and mortar family homes. People are doing it. I have recently bought an apartment (yes: high rise, high density, tourist destination, lifts and caretaker) and so far I am cash flow positive, after netting all costs including cleaning, rates and body corporate. I only manage the bookings of the apartment and outsource everything to a cleaner who doubles up as my meet-and-greet host. I also have insurances to cover those times when needed, and I do everything above board.
I would like your views on how your look at Airbnb investment as part of an investment strategy—if it is something that you are interested at discussing.
Thanks.
If you like this Q&A episode (A Transitioning Market, Money, Habits, Tax Deductions and What It’s Really Costing You), 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://thepropertycouch.com.au/topics/

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/.

 

 

 

Episode 079 | Q&A – Underquoting, New Developments Next Door, Fixing an Overly Negatively Geared Portfolio and more

It’s the first day of Spring and a perfect time for a Question and Answer episode! Bryce and Ben started off with some of their auction stories on underquoting and a general market update.The property market had been rather cold this winter but with that over, what will we be expecting these coming months?

 

Here are the questions for today’s podcast:

  • Question on new developments next door from Jesse: My question is regarding to the current development boom that has exploded all over Melbourne as it relates to my property in bayside Melbourne. My wife and I bought a town house in Cheltenham about 8 years ago. It is on a reasonably busy road that goes from Nepean Highway down to the beach in Sandringham. We have been diligently paying it off as quickly as we can in order to give ourselves some freedom (we are both freelance) and now we are looking to buy our first investment property. This week the house next to us and the next seven houses along have all got ‘For Sale’ signs up in front. Our understanding after a brief chat with the next door neighbours is that they have all been approached by a developer who wants to build a large mid level apartment block right next to our house. Our concern is what impact this will have on our property value. We are now planning to move out and ‘rent-vest‘ as we don’t want to stay there through this construction phase.
    Our main concerns are:
    (A) How this will impact the value of our property when it comes to us getting a loan for an investment property.
    (B) The impact this will have on our ability to rent out our townhouse if this new development goes ahead. In light of this are we better off trying to sell now and cut our losses or stick with it as a rental.
  • Question on cash flow from Sonia: Hi Bryce and Ben, I am a big property fan and have been listening to every single episode of the property couch. I have a few investment properties in the Sydney inner city suburbs. Besides that I also have a decent amount of savings in cash. I just quit my job to study interior design, hoping to set up my own business later on. I am a typical rich in assets and poor in cash flow example. Just wondering what is your investment advice for people like me. Thank you. Sonia
  • Question on property portfolio fromKhai:
    • Q1) Is it better to pay off the mortgage or keep buying Investment properties?
    • Q2) I have forecasted passive income of $60,000 (as a couple) in next 10 years (assuming 5% annual price rise and if I sell down my 6 properties to fully own 3 including PPOR). How do you increase this to 100,000? Keep buying 3-5 more properties in next 5 years.
    • Q3) How do I fix a severely negative cash flow portfolio (minus $25k annually for 6 properties)? Options I have in mind are: building a granny flat, refinancing to lower interest rates, raising rents, converting car space in townhouse to LUG (costs probably $10,000 per townhouse but increase rents $1k per year), converting car space in townhouse to LUG (costs probably $10,000 per townhouse but increase rents $1k per year)
  • Question on develop or buy from Adam: I own a positively geared corner property in North Sunshine in Victoria, I am ready to take the next step in building my portfolio, does it make better sense to develop my existing property into three town houses, or to go and buy another investment property keeping in mind that property price growth will most likely exceed building costs ?

 

If you like this Q&A episode (Underquoting, New Developments Next Door, Fixing an Overly Negatively Geared Portfolio 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 021 | The Negative Gearing Debate in Australia

The debate on negative gearing and how it impacts the Australian Property Market is ongoing but when the RBA suggested that negative gearing might be up for a review last week, the debate got hotter. This is further fueled by the controversy about property bubble in Sydney and how property investors play a role in it.

Ep 21 The Negative Gearing Debate in Australia - Stamp Duty taxSo this week on The Property Couch, Bryce Holdaway and Ben Kingsley decides to tackle this debate head on and discuss about the history of negative gearing, why some people are against negative gearing and how will it impact our economy if it’s being scrapped off. Start listening to this podcast to learn more.

 

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: info@thepropertycouch.com.au

 

If you would like to access The Property Couch’s media kit, please email us here: info@thepropertycouch.com.au.

 

Resources mentioned in this podcast:

 

If you like this podcast: “The Negative Gearing Debate in Australia”, 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 001 | We Fix Bad Property Investment Advice

Welcome to the First Episode of The Property Couch! To kick start this podcast, Bryce Holdaway and Ben Kingsley share some of their personal property investment journey and the mistakes and lessons they learned along the way. This is the main reason why they are doing what they are doing whether as the chair of Property Investment Professionals of Australia (PIPA) or in their daily routine as buyers agents and property investment advisors; they want to help others fix and prevent bad property investment advice. Start listening to this podcast today!

If you like this Insider’s Guide to Property Investing, 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/

 

 

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