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Episode 013 | Questions and Answers

Thanks to all our listeners questions about Property Investment in Australia! They are great point of views and we are glad that the podcast is inspiring you in different ways. So for today’s episode, Bryce Holdaway and Ben Kingsley will be addressing questions from:

  • Ep 013 - Q&A 1- The Property Couch Podcast - Property investing in Australia - Buy an investment propertyDan and Ryan : Should we buy an investment property in a high growth location and keep renting, or move a bit further out and get something we can afford?
  • Leah : Do you think the tax rules around negative gearing will change in the future, so as not to benefit those investing in multiple properties and how do you diversify your portfolio?
  • Mark : How do you identify high disposable income suburbs and if you’re buying in a block of units, how do you work out if there are more owner occupiers than renters in the building and area? Also, what do you think about dual living homes ie: granny flats?

 

We are hoping to answer all of our listeners questions in time. If you like this podcast: “Why Invest in Property?”, 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 012 | Why Invest in Property?

It comes as no surprise that Bryce Holdaway and Ben Kingsley are huge advocates to investing in property. As property investment advisors and buyers agents, they’ve come across many different platforms of investment and have chosen property as their preferred vehicle. But, why invest in property? This is the main topic that Bryce and Ben will be discussing today particularly in terms of investing in residential property. They won’t be debating whether property or shares is a better option because both type of investments can be used depending on the investor’s circumstances and preferences ie: cash flow position, tolerance to risk, years to retirement and more. Instead, they will be sharing their own personal property investment stories, why they themselves, chose it and what kind of research do they conduct when investing in property.

 

The Property Couch - Ep 12 - Why invest in property - CoreLogic Pain and Gain reportIn this podcast, Bryce and Ben also mentioned that not all investment properties generate profit and based on this report by CoreLogic (Pain and Gain), one of the thing we notice is properties held for a short period are much more susceptible to loss. Click on the image on the right to start downloading the report.

For more information on CoreLogic, RP Data CoreLogic

 

If you like this podcast: “Why Invest in Property?”, 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 011 | Property Spruikers

Property Spruikers’ activity in this industry is not a new topic. It has been going on for a while and ASIC is trying its best to find and penalise these parties.  However, despite being a well known issue, there aren’t much else being done about it and at the end of the day, innocent investors are the ones getting hurt. Bryce Holdaway and Ben Kingsley have seen many cases like this in their day-to-day role and unfortunately, they’ve a lot of experience in fixing bad property investment advice. It is an issue that they are very passionate about and it highlights the importance and the crucial needs for more regulation and education in this industry. Hence they are keen to share with our listeners on how you define a spruiker, what’s their classic tactic is when trying to win an investor over and how can you distinguish them. Start listening to the podcast now to find out more.

Also, the RBA has just drop the official cash rate this month! Check out Ben’s commentary on the rate cut here.

 

If you like this podcast, 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/

RBA May 2015 Cash Rate Cut

Today the Reserve Governor and the Board met and they’ve dropped interest rate once again to 2%. So following the February rate cut, they’ve followed it up with a May rate cut. Now, if you are wondering what factors have motivated the RBA to make this decision, check out Ben’s commentary on it.

 

 

 

Ben Kingsley - Quote of the Day - The property couchCommentary & Opinion of Ben Kingsley – CEO & Founder; Property Investment Analyst and Advisor and current Chair of PIPA Ben Kingsley is the Founding Director of Empower Wealth and Chair of Property Investment Professionals of Australia (PIPA). A qualified Property Investment Advisor (QPIA), Ben holds a Real Estate Agency License (QLD), a Diploma of Finance and Mortgage Broking Management, a Diploma of Business and has become one of Australia’s leading experts in property investing for wealth creation. 

 

(People watching/reading this should be reminded this is an opinion comment by Ben Kingsley, and should not be used when making decisions about financial matters without seeking further clarification and understanding of your own personal circumstances. This article is not advice you should rely upon. We recommend you to speak to a licensed professionals before taking any action with your financial affairs)

Episode 010 | Tax Depreciation (Case Study)

Here are the Case Studies mentioned in Episode 010 | Tax Depreciation of The Property Couch:

Tax Depreciation Case Study 1:

A $600,000 – $700,000 period home with a rental income of $22,880 per annum

An investor owns a period home purchased for between $600,000 and $700,000 with a rental income of $440 per week.
Expenses for their property such as interest, rates and management fees totaled to $40,950. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $9,880 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor to turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $3,655.
The following scenario shows the investors cash flow with and without the depreciation claim:

Tax depreciation case study 1 - The Property Couch
This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $219 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $149.

 

 

Tax Depreciation Case Study 2:

A $400,000 – $500,000 older villa with a rental income of $21,060 per annum

An investor owns an older villa purchased for between $400,000 and $500,000 with a rental income of $405 per week.
Expenses for their property such as interest, rates and management fees totalled to $29,610. A depreciation schedule from specialist Quantity Surveyors BMT Tax Depreciation found the investor would be entitled to claim $7,930 in depreciation in the first financial year. By claiming depreciation deductions, BMT was able to help the investor turn their negative cash flow into a more positive one, reducing the costs involved in holding the property by $2,935.
The following scenario shows the investors cash flow with and without the depreciation claim:

Tax depreciation case study 2 - The Property Couch

This investor used property depreciation to reduce the costs of holding their property. Without depreciation, they were paying out $104 per week. By taking advantage of tax legislation and making a depreciation claim, the weekly cost of holding the property is reduced to $47.

 

Case studies provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Chief Executive Officer of BMT Tax Depreciation.

Episode 010 | Tax Depreciation

It’s common to hear people saying things such as , “This property would give you heaps of depreciation benefits!” But do you know how does Tax Depreciation Schedule works when investing in property in Australia? This time on The Property Couch, Bryce Holdaway and Ben Kingsley is joined by the Managing Director of BMT Quantity Surveyors, Bradley Beer to explain what tax depreciation actually meant and how does it work.

It’s important to understand that depreciation benefits should not be the prime reason for investing in property because depreciation amount will eventually deplete. Hence, it is more important to select the right location and an investment grade asset and to regard the depreciation that follows as a additional benefit.

Brad Beer had prepared two case studies for this podcast. The first is a $600,000 – $700,000 period home with a rental income of $22,880 per annum and the second is a $400,000 – $500,000 older villa with a rental income of $21,060 per annum. For access to the Case Studies mentioned in the podcast, please click here.

 

To download the BMT Tax Depreciation Application Form – Fill in the form below or click here

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If you like this podcast, 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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