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Episode 084 | Why you Shouldn’t Invest in Property?

Yes, we know it can sound a bit contradictory. This is a property podcast with two of Australia’s top property experts and we even did an episode on why invest in property! So why would we talk about not investing in property?

Well, the fact is, investing in property is not the perfect type of investment for everyone. There are certain times in an investor’s journey where it is simply a bad time to start investing. There are also times when investors need to first reflect on their mindset before they start. Property investing is a high-value investment, and you’ve heard us repeatedly saying that it is for the long-term. It’s like following a recipe. If you don’t have all the essential ingredients in place, it’s best if you don’t cook the dish. So if you don’t have everything in line, it may be better for you to stay away from it for the time being.

So in today’s episode, Bryce and Ben will be sharing a few reasons on why you shouldn’t invest in property. The first is when you decide to invest purely for tax purposes.

 

Free resources mentioned in this podcast:

  • CoreLogic Pain and Gain report – Read here
  • Money SMART Report – Download here
  • Webinar with Bryce Holdaway and Jane Slack-Smith on Renovating an Ugly Duckling – Register here
  • FREE Tickets to the Sydney Property Buyer Expo (Coupon code: PBE16BRYHOL) – Get them here

 

If you like this podcast: “Why you Shouldn’t Invest in Property?”, 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 068 | Common complaints we hear from property investors

It has been some time since our last episode on investing and mindset framework so this time, Bryce and Ben will be unpacking the common complaints they hear from property investors. Here are the top 9!

  1. Wrong asset
  2. No buffer in place
  3. Mentoring was actually salesmanship
  4. Not maximising tax depreciation with Quantity Surveyor
  5. Solo sport
  6. Self property management (Check out Episode 31)
  7. Poor cash flow management (Check out Episode 3)
  8. Not starting early enough
  9. Selling

 

Apart from that, they will also be sharing some insider information on ‘offers’ they’ve received from property spruikers out there, Labor’s debate on negative gearing and the changes on foreign buyer stamp duty. Also, if you are interested in the BMT Tax Depreciation Application Form mentioned in this podcast, just fill in the form below and we’ll send it to you right away:

Free resources: BMT Tax Depreciation Application Form

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Other resources mentioned in this episode:

 

PS: We’ll also be holding a Live Q&A Event on Wednesday, 29th of June at 8:30 pm. Check out our Facebook page for more information!

 

If you like this episode (Common complaints we hear from property investors), 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 064 | Case study: mid 30s couple, combined income of $150k p.a, existing PPOR and two IPs

It has been quite some time since our last case study so this time on The Property Couch, Bryce and Ben will be discussing one the case studies that we’ve received from our fellow listeners! Here’s what Tom wrote to us:

 


 

After listening to Episode 56 where you discussed various other case studies I thought I might write in to see if you were interested in discussing our situation. I’ll try and keep it short!

Basically, my partner Kirby (30yo) and I (32yo) are both teachers on a combined income of about $160k. 3 years ago we got the bug to do something with our money but weren’t exactly sure how. Our simple goal is to have choice whether to work or not. If we had no loans to service we imagine a passive income of $80-100k would be more than enough, and any more is a bonus!

We had a PPOR property valued at a tad over 300k with a mortgage of ~200k, limited other expenses and a disciplined approach to spending. Property sounded like a great avenue so we went about increasing our knowledge. Unfortunately our naivety led us to a property investment ‘education’ group where although we have learn a lot we have made what we think are two poor investment decisions. We overpaid for both to fatten the developer’s margins.

Our first was brought using the above equity in our PPOR and was a House and Land duplex in Dakabin, Qld for circa $500k. Although the yield is decent there were many costs that the property investment ‘education’ group failed to mention/understand that we have been left with, and there is little scarcity or owner occupier appeal to make growth a good prospect. We have always had tenants in both sides which has been great. We borrowed 90% on interest only terms.

About 18 months ago we signed another contract, this time on a 4 bed H & L in Doolandella, 18kms out of Brisbane for circa $400k. After a long land settlement this was completed yesterday and will be advertised for rent tomorrow. Looking at about a 4.9% yield. Again, this is on an interest only loan at 90%. Deposit and costs were paid from our savings – I know, huge mistake!

Right after we signed this contract we found your podcasts which have taught us that there are so many fundamental errors in our property selections, and if we had our time again would have purchased existing properties with scarcity and owner occupier appeal.

We have just had our first child and Kirby is now off work. We have a ~$45k buffer in our PPOR offset and somehow are still managing to save, even though Kirby is off work, although receiving maternity leave payments.

We use a credit card to pay for 95% of our spending, and repay at the end of every month to ensure no interest payments.

So, we are still very keen to use property as our investment vehicle and have learned so much in the last year but are now stuck as to our next step. We doubt we would have enough equity to purchase again now and the fact Kirby is off work will severely hamper our serviceability. She will return to work at the start of 2017.
Questions:

  • Do we sell both/one of our current properties? We’d like to keep if possible as I am a firm believer in buy and hold, although will they hamper us moving forward?
  • Where to from here?

Any information from you would be extremely appreciated. I’m sure there are a number of people who have used ‘property spruikers’ such as these to purchase less than ideal investments.


 

If you like this case study episode (Mid 30s couple, combined income of $150k p.a, existing PPOR and two IPs), 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/

Episode 042 | Investment Strategy, New Developments and Professional Advice – Chat with Steve Waters

Our next guest on The Property Couch is Steve Waters from Right Property Group! Steve comes from a Buyers Agent background and his company is part of the Property Investment Professionals of Australia (PIPA) association.

With a combined experience of more than 30 years in the property industry, this trio will be chatting about:

  • What triggered Steve to start his investment journey and the biggest mistake he had ever made in his own portfolio
  • The philosophies and strategies in property investment – Capital growth vs cash flow
  • Their thoughts on new developments – the good, the bad and the ugly
  • What do they look for in asset selection
  • Where do they see the most pain in a market correction
  • Why do you need professional advice when investing in property and where to look for them

 

If you like this podcast: “Investment Strategy, New Developments and Professional Advice – Chat with Steve Waters”, 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 040 | Q&A – Line of Credit, NRAS Program, Fixing a Broken Portfolio, Conducting a Due Diligence and Insurances

Introducing the first episode of our summer series! Let’s kick start with a Q&A episodes. If you have a property related question that you couldn’t solve or needs an opinion on, please do not hesitate to let us know here. In this episode, Bryce Holdaway and Ben Kingsley will be addressing some topics on:

  • Line of Credit (LOC) question from Brad : Firstly, love the podcast, but have to agree that the sports commentary should be left out. ( 😥 from TPC Hosts). I have a finance related question, specifically about the intricacies of Lines Of Credit. All the articles I can find say you should get a LOC, which I get, but none drill down deeper into the intricacies of using the LOC. I understand that you would use your LOC for investing costs, such as a deposit on new property, or the levies or rates for a property. My uncertainty is whether I am then able to claim the interest charged on the LOC for these expenses. To make things more complicated, what if you were to pay your investment loans off using this LOC. Surely you couldn’t then claim the interest on the LOC as well as the investment mortgage? That would be double-dipping, right? Please do a segment on your show (which I listen to religiously) that explains more how to use the LOC tax effectively and legally.
  • NRAS questions from Cesar : What is your view on the NRAS program? From everything I hear from you it is probably a no go, but would be nice to hear more as many spruikers are heavily promoting NRAS to investors.
  • Property Portfolio question from Sandy : Guys, love the podcast and wish I had listened to it a few years ago. My suggestion is to discuss the strategy to fix a “broken” portfolio ie a number of under performing properties (pretty much all the things you have explained to avoid) that were spruiked.
  • Due Diligence and Research from Daniel : You always hear from professionals in their podcasts that you need to do due diligence and do your research into finding a property. I’m a first time investor, but this question could be used for every investor. What resources do you need and what do you have to look for in conducting due diligence? I wouldn’t know where to begin. Could you please elaborate on who one can achieve this?
  • Property Insurance from Daniel : Advice on what’s the best type of insurance to have on your investment property?

 

Free resources mentioned in this podcast:

 

If you like this Q&A 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/

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