X

342 | From $250K to $2M Properties: How To Invest No Matter What Your Budget Is!

Have you ever wondered how to invest in property with YOUR specific budget?

Like, what if you DON’T have a big budget to spend…?

Or, on the contrary… what if your budget’s actually quite healthy – but you’re not sure if a $1 million – $2 Million property is really a premium investment (Should you buy two cheaper investment properties instead?)…

Folks, they’ll be something for you in this Q & A episode… ‘cos we’re covering A LOT of ground here – how to invest no matter what your budget, age or strategy is!

We’ve got everything from…

  • Investing at 21… and 60!
  • Buying $250K or $2M Properties
  • Getting the “Big Rock in the Jar” at every life stage
  • Selling an investment to buy a dream PPOR
  • Understanding The Donut Ring concept
  • Unpacking new ATO data that reveals current investment trends
  • Helping kids get on the ladder
  • Why Rentvesting is mathematically a better idea, BUT….

Let’s just say: you’re in for a solid treat.

Listen now and find out how to successfully invest at any stage of life or budget 🕺▶

 

 

Free Stuff Mentioned

 


The Questions We Answer…

 Question from Sharon on Buying Higher Priced Properties

Hi Guys, Thanks for having such a great podcast. I’ve recently got very addicted to it and I’m really enjoying it. I do have a question though around the value of properties that we should buy. I hear you talk a lot about your asset selection but I never heard you talk about higher priced properties, so like when you’re well over the $1 million mark. We live in Melbourne in the North, so we’re looking $1.5 to $2M for our next purchase and I’m wondering if you consider that a best investment or what you think about high priced properties ‘cos obviously that’s still just like a very average 3 bedroom house in the North. So I am just wondering if you don’t talk about it for any reason, or if there’s some reason you should avoid that price point.

 

Question from Steve on Selling An Investment Property for A PPOR Or Buy Cheaper

Hey Gents, absolutely love the podcasts and I’ve been a listener for many years now. I’m 30 years old with a fiancé and we have an investment property fully paid off worth about $600,000. We’re currently renting very cheaply in order to save for our principal place of residence, so we were originally looking around the Ringwood area to spend about $900,000, but due to such limited opportunities I feel, and really average properties that don’t have scope to expend, we are considering selling the investment property off and plunging pretty much all of our net worth into a property that will allow us to get us into something more like around the $1.2 or $1.3 Million mark. In saying that, we’ll still probably only need to take on a loan of about $600,000 between the two of us, which is quite achievable, however just wanting to sort of get some advice from you.

Do you think it’s worth trying to buy our dream home — something that we’re gonna be happy for a very long time — and selling off the other investment, or whether we should be holding onto the investment and obviously sacrificing our lifestyle for the short term and turn to getting into something a bit cheaper?

Really interested to hear your thoughts. I am very, very confused at the moment. Thanks guys.

 

Question from Julia on Sell or Hold An Architectural Apartment in Inner Sydney

Hi Fellas, I feel really strange talking to my computer asking a question but I love your show, really had a great time listening to it. So my situation is I am in my early 60s and I’ve been working on super and all that stuff and I own my own home, but I bought an investment property in the heart of the city of Sydney. It was actually in a designer’s building – it’s got about 51 apartments there. Anyway, COVID came and of course the tenancy situation really changed in the heart of Sydney.

So, I did have to reduce my rent from $650 for a one-bedder down to $520 a week so that was a massive drop for me, but really my question is about – over the last 5 years since I’ve owned the property it’s only gone up about $20,000 ‘cos I think I’ve paid at the top of the Market.

My question is, Should I cut my losses being in my early 60s or should I hang in there and hope for better days?

My original plan is to keep this property well into my 80s and I’m just feeling the jitters because the rent has dropped so much and the value just hasn’t increased over the last 5 years so any input would be appreciated.

 

Question from Gabby on Buying A $250,000 Property

Hi! My name is Gabby and I’m a 21-year-old from West Australia. I love your Podcast, but I feel as though I belong to a bucket that you haven’t talked about much. I’ve been boarding and renting my whole life, but wish to or have to move out of home eventually and hopefully soon especially with low interest rates. I want to buy an old unit with 2 bedrooms in a small block priced between $250,000 and $300,000 and then rent out a room to a friend.

It’ll be in the East Fremantle area hopefully, which is on the premium side of first home buyer suburbs, but it could be out of my grasp if I sit on it for too long. The problem is that I don’t actually have the money needed and my parents are happy to invest as long as it makes sense. I’m thinking that repayments could be roughly $260 a week and the room could be rented out for $120 at least a week. This basically makes almost cheaper than renting but me getting the lifestyle and the property at the end.

Do I get them to go Guarantor or use the complete trust we have with them instead taking on the loan as an investment, but me paying it off behind closed doors and essentially taking it over by the end.

 

 

341 | How To Pivot Your Investment Strategy When Affordability Changes

Folks, it’s no secret that property prices have seen a significant uptick – so what does this mean for your investment strategy if you can no longer afford to buy investment grade locations that are close to the city?

See, if you’ve read our book The Armchair Guide To Property Investing, or heard any of our earlier episodes, you might have heard us quote particular price points that now seem, well, a bit ridiculous.

You might’ve thought, “A $650,000 property in inner city Melbourne… what? They’re now over a mill, guys…?”

Or, “Where on earth can I buy a property for $450,000 in this market!?!”

 Or, “You said to aim for inner city properties with owner-occupier appeal, but now you’re talking about regional markets… what’s the deal?”

We hear you. And we get it.

That’s why today we’re doing a deep dive on how to pivot your investment strategy when affordability changes!

Make no mistake – the fundamentals DON’T change… but you need to be both smart AND realistic about the locations that are available to you, whatever your price point may be.

This is a Q&A episode you don’t want to miss – we tick off A LOT of key property investment questions that we’re confident will allow you to find success no matter what your price point is! Plus, we’ve got some new frameworks on how to navigate land tax, learn when it’s time to SELL (yep) and best practices to manage your money without dedicating your life to managing a spreadsheet….

Tune in now – and let us know what you think!

 

P.S. Yes, Ben is actually in his CAR when we’re recording this episode… find out why in the first five minutes 🤣

 

Free Stuff Mentioned

 

The Questions

Question From Valarie on Tips For Money Management

I bought a course and really love I’m also through the Make Money Simple Again book. I have one question: How do you apply the Money SMARTS system to a couple? At the moment we have separate accounts, something like 12 accounts between the 2 of us. How do you change that to fit into the system? Do you go with one family account and 2 debit cards account and 2 credit cards account or is there another configuration that you recommend? Many thanks in advance for your feedback Tips and Have a Great weekend. Thank you!

 

Question from Kiran on Land Tax and Different Entities

Good day Bryce, Ben, Stiggy and the team. My name is Kiran, I’m from Melbourne. I was listening to your podcast a week or two ago and you spoke about an active, investor Bruce in this episode who had land tax issues because he was investing in the same state. All investments are in the same state. I understand the active investor issues but from what I understand, all these investments were possibly in his personal name. What if Bruce was able to invest in different entities for examples companies or trusts? Each entity would then be completely separate and hence reset the amount of land tax he had to pay. Can you unpack the issues as to whether this is a worthwhile strategy and other differences with finance? I understand that commercial finance is required for companies which results in less favourable LVRs. Are there any further issues that someone looking to invest using companies or trusts to reduce their land tax bill may encounter?

 

Question From Mathew Monty on How To Buy Assets Closer In On Combined $100k Income

Hi Guys, I love the Podcasts. I just got a couple of questions regarding investment grade/investment stock – more for people like me that don’t earn that much money. Can you buy with an income of $100,000? So I’ve got a property that’s got good equity and we went out and we bought another property for investment, probably just investment stock in Truganina. So 20-something kilometres from the city, I know it’s not investment grade like you just talked about. However, I wonder how people on say $100,000 a year in combined income could afford to get into those inner-city areas? I don’t know if that’s possible. Given our situation that we’ve bought a new investment stock property, where do we go from here?

 

Question from Dimitra on The 6-Part Framework That Reveals It’s Time To SELL!

Hi guys, Love your podcast. I listen regularly on the drive to and from work, and recently purchased your audio book which has been super informative. You always share a lot of knowledge when it comes to finding and purchasing an investment, but would love more information on what to do if you’ve bought a lemon! Most of the things you tell us to avoid applies to my investment property. The apartment was purchased off the plan in an area where supply exceeds demand and the property price hasn’t increased since it was purchased back in 2017. And to make matters worse, since Covid and the bad publicity new apartments have been getting, the property has gone down in value. There are tenants in the property currently and I have to contribute an extra $50 per week towards the mortgage (principle and interest)

The positive is that the property is in Sydney, 12km from the CBD and a 10 minute walk to public transport. This purchase obviously happened before I discovered your podcast, but what should I do?

Should I hold the property in the hope that it will eventually increase in value, or is there no other option but to sell and cop a loss?

Any advice you can give would be much appreciated. Many thanks.

 

 

 

 

RBA June 2021 : Inflation Risk – How bad is it?

This video features Ben’s update on the Reserve Bank of Australia’s cash rate, and as always, he’ll be unpacking the economic and political update around the world and within Australia too.

The themes for this month are:

  • Settle down, people, settle down – there’s too much commentary about the inflation risk story.
  • This month it’s all about the positive business data as they join the economic party.
  • And finally, well, we’re back in lockdown for the fourth time here in Melbourne. .

 

Plus, Ben also includes his latest news and commentary on…

👉 The World Economic Story – Commodity Prices and COVID Update
👉 Overall Economic Outlook in United States, China, Japan and Europe
👉 Quick update on the Federal Budget 2021!
👉 The Unemployment and Wage Growth story – Why are we so concerned about them?
👉 Business Conditions – What’s Making News?
👉 Property Prices – How long will they continue to increase?

 

 

Additional free resources:

If you’re looking to buy at the moment, make sure to check out our Mini-Series!

🔥 Episode 325 | The Step-By-Step Process To Win In A HOT Property Market – Part 1

🔥 Episode 326 | How To Win In A HOT Property Market (Part 2) – The Step-By-Step Process!

🔥 Episode 327 | Winning A HOT Property Market (Part 3) – The Step-By-Step Process!

 

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

 

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

 

 

 

 

 

 

340 | Auction Ready: How To Win In Any Market! – Chat with Veronica Morgan

Want the proven tactics and bidding tips to WIN at auction!?!

Folks, this episode will help take the STRESS out of the intimidating auction process and give you the exact strategies professional Buyers Agents use to…

  • Master the buying process
  • Outsmart real estate agents
  • Beat the competition (without overpaying)
  • Avoid auction mistakes
  • … and, ultimately, secure the property!

Here to help us unpack ALL this – plus a whole heap of other must-know property and auction tips! – is nonother than our good friend Veronica Morgan, Founder and Principal of  Good Deeds Property Buyers, co-host of The Elephant in the Room, Bryce’s co-host of Location, Location, Location Australia, and arguably one of the BEST Buyers Agents in the country.

… Together, we’re going to get you Auction Ready!

You’ll learn how to navigate auctions in a HOT property market (like a pro!) and get the epic EVERGREEN bidding tips that’ll confuse your competition so the auctioneer will drop their hammer on YOUR final “I can still sleep at night” bid.

Sound good?

Tune in now to get a complete walkthrough of the entire buying process – enjoy!

 

Free Stuff…

Fill in the form below and we'll email you the Budget Breakdown PDF right away! 😉


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?

  • This field is for validation purposes and should be left unchanged.

 

 

Here’s What We Cover…

  • Understanding your Buyer Profile: How it affects you at auction!
  • Why do most people hate Auctions?
  • What are the benefits of Auctions for buyers?
  • How to spot the frightened buyer…
  • What do you always need to do BEFORE you purchase property?
  • What real estate agents know that you don’t!!
  • What details SHOULD you tell the agent?
  • How to work out how much the property’s worth
  • How to set your maximum bid
  • What To Do On Auction Day: Your Prep Checklist!
  • What are the 12 “Behavioural Biases” that make people irrational buyers under auction conditions?
  • Top Auction Tips For A HOT Property Market
  • 5 Powerful Bidding Tactics That Work!
  • What are 7 Types of Auction Bidders?
  • The 4 Bidding Mistakes That Cripple Property Buyers! (Ouch…)
  • The Post-Auction Process: What To Do, What Not To Do
  • The 8 Types of Real Estate Agents!
  • What are the best type of real estate agents?
  • Bidding With ODD Numbers: Why It Works And Why You Should Do It Too
  • The Quickest Way To Work Out Who Your Competition Is!
  • Wait, what… people bid against themselves!?!….
  • Vendor Bids: How can you use them to your advantage?
  • The $1 Million Dollar Bidding Mistake That You Have To Hear To Believe…

 

 

339 | “Man, Can Politicians Spend Money!!” – ft Property Q&A

Folks, as promised we’re diving deep on the 2021-22 Budget Review – what’s in it, what are the key takeaways for property investors, first home buyers and us Aussie taxpayers!!

In a one-liner summary… “Man, Can Politicians Spend Money!!”

Yep. And we’re unpacking quite a bit of it – such as…

  • The $15.2 billion infrastructure spend!
  • Free cashback (Tax Offset) & how much you’re likely gonna get back…
  • First Home Saver Scheme
  • Family Home Guarantee for Single Parents
  • New Home Guarantee
  • Superannuation Downsizer Scheme
  • The increase to the Child Care Subsidy
  • Public Housing support
  • The HomeBuilder extension
  • VIC State Budget & The consequences for property owners and property developers

Plus, to give a bit of contrast to the Budget News we’re also circling back on a few key evergreen property investment formulas and answering a couple of listener questions!!

Get ready – you’re in for a solid ep, folks!

 

Free Stuff Mentioned…

Fill in the form below and we'll email you the Budget Breakdown PDF right away! 😉


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?

  • This field is for validation purposes and should be left unchanged.

 

The Questions…

Question from Al Knight Lewis – Investment Stock & Investment Grade – Is it still relevant?

“Good afternoon. I have just started listening to your podcasts and am finding them so

Interesting! Episode 8 talks about investment stock vs investment grade and I’m wondering if the info in this episode is still current and relevant 6 years later? I’m looking for our first investment in Brisbane.”

 

Question from Don Holloway – Are there any benefits from having $10k sitting in an offset?

“With interest rates so low atm is there any benefits from having $10k sitting in an offset?

My calculations (and confirmed by investment bankers n mortgage brokers) best to buy quality shares with your $10k than to month ball it into an offset account. Would love to hear your thoughts on this.

BTW, I’ve read your book Make Money Simple Again last year. Found it to be a parallel to Scott Pape barefoot investor

 

 

 

 

Instagram

Free Resources

What to be notified when there are
new updates & free resources?

  • This field is for validation purposes and should be left unchanged.

×

MONEY SMARTS SYSTEM

Plus We Will Also Notify You When We Release New Episodes

We Only Send You Awesome Stuff

×

SUGGEST A GUEST!

We Only Send You Awesome Stuff

×