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Episode 264 | How $4,000 Turned into Six Properties – Chat with Joey

When he bought his first investment property, Joey D’Agata was too nervous to do his own bidding. But, flash forward four years, and he’s now self-built a high-income producing portfolio consisting of SIX properties. And, even more impressive… he’s only 26!!

So folks… how on earth did Joey make this happen for himself? Especially considering the fact that when he first started saving, he was earning less than $50,000 a year and was seriously concerned that someone in their twenties wouldn’t be able to afford to buy a SINGLE property, let alone go ahead and invest in six of them.

So, the multi-million dollar question is… how’d he do it?

Well, this is where the $4,000 comes in…..

… Keep in mind, there’s a bit more of a back story here, which we’re unpacking in this episode, but here’s the quick overview: Joey “embraced” Lenders Mortgage Insurance (LMI).

Now, when it comes to Lenders Mortgage Insurance, we always say… “Avoid it when you can, but embrace it when you have to.”

Why??? … well, that $4,000 cost went on to put Joey in a position where he could buy another FIVE properties.

 

Your Free Resources

  

Today’s “Lecture Notes”

 

 

 

Bonusisode – Find Out How YOU Compare To Everyone Else in Australia: Brand New Feature Available Now (Yes, it’s Free!)

So… Have you ever wondered…
  • How do you match-up financially for your age?
  • How do you measure-up to other households like yours?
  • How are you tracking compared to others?
If you have, that’s great!! We’re thrilled to announce this new update on Money FIT which allows you to…
  • Compare household incomes
  • Compare household total expenditure
  • Compare down to each expense item level i.e Your Grocery spend vs. Others Surveyed
 
Getting excited (or nervous) about the prospects of finally get a far better idea of where you stand — financially?
Well, what if we told you that you can also filter the data for greater insights… Your household compositions vs. others by:
  • Age group
  • Location
  • Expense item
  • Household Income
  • Surplus money
  • Net worth
  • Nest egg
Remember, knowledge is empowering but only if you act on it.
Log in to MyWealth Portal Now and check it out! 👉 https://tpc.moneysmarts.com.au/

And here’s the demo video folks:

Log in to check out Money FIT now: https://tpc.moneysmarts.com.au/

Don’t have an account? Create a free one right now! Just fill in the form below:

 

Hi it’s Ben Kingsley here, and I’m flying solo for this bonus episode! I’m delighted to be able to announce to you something that I had hinted about a few episodes ago — a couple of months earlier — around a brand new feature on The Property Couch’s MyWealth Portal.

As you know, we’re on this crusade — this mission to help households create, manage and organise their money; manage it property and thrive to trap more surplus and put that money to work. And part of our strategy is this brand new area that we’ve been testing for the last couple of months, which we call… Money FIT.

So you might have heard us use that wording before, right? Money FIT’s purpose is to effectively allow you to be able to compare your finances with other households.

Now, I want to give you just a little bit of a backstory on this. I’m very fortunate that there are a lot of people coming in to our workplace and we sit down and we talk money all day and we talk property all day.

And in those exchanges I can share with you what some household’s biggest fears are. And when I sit down and have a chat to them, we get to build rapport and trust. And when we have that trust as their accountability partner and they can see that we’re trying to work for them. They lean in a little bit and they ask me this question — I asked this question of all of our advisors — snd that question is….

… How do we compare? Does everyone similar to us spend what we do? And are the spending their money on the same things as us?  How do we stack up?

Well, up until now, that was always a difficult question to answer. So, what we’ve been able to do is pool all of this information from everyone on our MyWealth Portal. We grabbed their data and we basically want to share that information with you.

Of course, no names — it’s all aggregated, non-personalised data. And I want to share with you some examples of what we do. So, first thing we look at is their total household income compared to the other households that we’ve surveyed. And how can you filter this data? You can filter the comparisons by state or you can filter it by age range. Now what it’s doing when you go onto the MyWealth Portal is it’s also capturing your household profile. So your household composition — and in that particular case means you can be a single person household, you can be a couple household, you can be a couple with one, two, three, four, 10 dependents — and once it has that information, it then starts to analyse you against the surveyed households, all the people who are using the Portal. So we start with household income, we then move to your overall household expenditure.

 

Now, this is where we also say it doesn’t matter the income your earning. We believe that every household can achieve a level of financial freedom and financial peace by organising and managing and their money better.

So we then go into the expense area, which we just said, and so we want the expenses to be in the lower range. Okay? If your income’s not in the high range, doesn’t matter. Try and be very, very careful in terms of what you’re spending there. How would you do that? Well, how we’ve been able to do that in the MyWealth Portal is llow you to be able to then look at EACH expense item.

That’s right. You can say, here we are as a couple in Victoria age between 30 and 35 and we can compare ourselves against all age groups or we can go into our particular age range and I can compare against everyone in Australia and look at thousands and thousands of households.

Or I can actually go down to the state level and then I go, Let’s have a look at groceries. Let’s have a look at electricity. Let’s have a look at hobbies. Let’s have a look at takeaway food spend. And you can start to see how you compare against those households. So the great debate that can sometimes occur in the household… the fear about how you’re tracking, all of those things. You can start to show up when you start to have a look at your situation against other households.

 

Then we move to how much surplus cash are you trapping. How do you compare it? What percentage are yous. You will see it all on the graphics we provide — you’ll see your range allocation, in terms of your situation.

 

So there is a demo video.

I have shot a demo video that is going to be in the show notes and you’ll be able to then see your surplus. And then you can also have a look at your net worth compared to everyone who’s using these free platforms.

So there you have it — a brand new feature Live on the MyWealth Portal!

How do you get there? Really simple. Head to tpc.moneysmarts.com.au

You can get on there if you haven’t already been on the portal and sign up for free (it’ll always be FREE) and kick the tires. You then load in your expenditure information, your income information. You tell us, you know, your household composition. So do you have a partner? Do you have any dependence? As soon as we have that information, you can then click on the Money FIT link and off you go!

 

Go and kick the tires on it, see how you match up; how you can compare. Make it a challenge for yourself as we go into the New Year…. see how you are tracking your money compared to thousands and thousands of other households in Australia.

So I’ll put the challenge out to you, go and check it out and then give us some feedback. You can contact us at info@thepropertycouch.com.au if you have any issues finding out where you sit, or what you most enjoyed learning about exactly how you compare against other fellow Australians and how they’re managing their money.

 

Thanks for listening to this bonus episode. Have a great Christmas and I’ll look forward to talking to you in the New Year!

 

Log in to check out Money FIT now: https://tpc.moneysmarts.com.au/

Don’t have an account? Create a free one right now! Just fill in the form below:

 

Episode 263 | How A Bag of M&Ms Set The Foundation For A $120,000 Passive Income – Chat with Keno

It turns out a bag of M&Ms has the power to build a passive income…

Sure, there’s a few more steps to get from “A bag of M&Ms” to “A passive income”… but you can bet on the fact that it does NOT take away from today’s epic story line!

And it’s one heck of an epic storyline that involves not JUST a packet of chocolates… but also 50 cents… a half-year-long sabbatical and… wait for it…. a property portfolio consisting of only TWO INVESTMENT PROPERTIES that will deliver $120,000 passive income in retirement!!!

Spoiler alert: today’s guest Keno Diamante is about to tell you exactly why planning ahead WILL change the game for you! And why is he in a position to share this story?? Well folks, he’s walking proof of it!

Another ripper episode in our Summer Series that can’t be missed. Hear it straight from the mouths of the folks who’ve gone and put their knowledge into action!

Before we get to the awesome chat with Keno today, here’s a quick message to all Queensland Property Owners. The Queensland Government has proposed changes to the rental tenancy legislation and you only have until 5pm, Saturday 28 December 2019 to have a say. So it’s imperative to act now and ensure property investors are heard on an issue that will affect your financial security. To help you make your submission below are the guide from PICA or you can also click here for a step-by-step instructions. You can also cut and paste the information below or make amendments as you see fit:

 

Your Free Resources

 

The Gold Covered in This Episode…

 

Quote of The Episode

“Imperfect action beats perfect inaction.”

 

Keen to Get Started with Money SMARTS like Keren?

Fill in the form below and create your account on our Money SMARTS Platform now!

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Episode 262 | Before & After: From “Scared and Sold Everything” To Financial Peace – Chat with Gabby

“80% of winning is beginning”

 When Gabby first invested in property, she lost her nerve and pulled the pin early … she sold everything. And a very big reason she got rid of the lot was simple and actually pretty common — she didn’t have enough confidence that she could “weather the storms” accordingly.

But then she found Money SMARTS, our simple 7-step money management system… and now Gabby’s life — as well as that of her husband and their 11 and 13 year-old kids — looks a WHOLE lot different!! For one, they have financial peace… and, armed with a strategic Plan to earn a passive income for life, they’re about to embark on investing again… this time with confidence they’ll be able to hold onto the properties for the LONG TERM.

The question is… what did this transformation look (and feel) like???

Well, tune in folks because that’s exactly what you’re about to find out!! Yep. We started our Summer Series with James Clear teaching us How To Hack Your Habits To Make You A Better Money Manager … and now you’re about to hear it from someone who went ahead and actioned it!

 

AND a Special Announcement to fellow Investors out there…

As Ben mentioned, if you own an investment property in Victoria, the proposed changes to the Victorian Rental Tenancy Act will impact you, so it’s important that you act now. Given the significant changes to the Act, your property could be impacted in terms of:
1. It’s future Value
2. How you manage the property going forward
3. Your tenant selection process

The Property Investors Council of Australia (PICA) is asking you to make a personal submission to the Victorian Government regarding this legislation. You only have until 5pm on Wednesday 18 December 2019 to have your say on the draft regulations. You must act now to ensure property investors are heard.

To help you make your submission please follow the instructions below:

  1. Click on this link here to open your word submission document. Give it a name- ie “John Smith’s submission form” and add your name to the bottom of the submission (in the highlighted red section). Save it in your computer.
  2. Click on this link https://engage.vic.gov.au/rentingregulations and scroll to the bottom of the page
  3. In the “Make a submission” section, enter your name and email, leave the section titled ‘organisation name’ blank. This ensures the submission is entered as a private individual and not part of PICA as we have already submitted one.
  4. Click on “Choose file…” and look for the submission form that you’ve saved on your computer. Click on “Open” and that will attach the file.
  5. Click on “Submit”

 

Free Resources Mentioned:

 

The Episode Breakdown

05:20 – Gabby’s Money Backstory! (You can hear what money was like in our own lives here)
12:55 – When did Gabby decide to get serious with money?
18:16 – What was it like to see Money SMARTS visually?
19:21 – How transformative is an offset account?
22:31 – What “provisions” are being tracked?
24:10 – How long is the monthly check up?
25:20 – How has Money SMARTS impacted the way Gabby buys groceries?
26:44 – Who had the most difficulty getting used to the 7Day Float?
28:00Money Lessons for Kids: talking money around the dinner table
28:20 – How is their money working harder now?
32:20 – What app does Gabby use to help her manage the 7 Day Float?
33:20Why advice?
40:10 – Gabby’s advice for you….

 

Keen to Get Started with Money SMARTS like Gabby?

Fill in the form below and create your account on our Money SMARTS Platform now!

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Episode 261 | How to Hack Your Habits to Make You a Better Money Manager – Chat with James Clear

Have you ever wanted to create better habits… and have them stick for the long term… even when your willpower is gone??

If you’re like us (and practically every other human on the planet), chances are you probably have! Despite the best of intentions, at some point or other ALL of us have struggled to stick with positive routines or follow through on what we said we’d do!

So, folks, imagine if right now you were about to get an easy and proven way to build good habits AND break bad ones….. well, you can imagine how game-changing it be, right??

Well, we’ve talked this guest up for a while now… and it’s about time we introduce him to you…

Here, all the way from US, with a practical solution to build a system for getting 1% better every day, is none other than…

JAMES CLEAR!!!

 

Yes, he IS the guy Bryce has been banging on about since we attended the Australian Real Estate Conference (AREC) back in June… and who made a HUGE impact on the two of us… both professionally and personally. And here’s why…

James Clear is a writer and speaker focused on habits, decision-making and continuous improvement. He is the author of the New York Times’ best seller, Atomic Habits (we highly recommend this one folks!). And his website — https://jamesclear.com/ — receives MILLIONS of visitors each month with hundreds of thousands who subscribe to hear his insights, which bridge the gap between scientific research and practical life. James is a regular speaker at Fortune 500 companies and his work is used by coaches and players in the NFL, NBA and MLB.

 

Here’s just a tip-of-the-iceberg look at what we’re discussing today…

  • Motivation is overrated; environment often matters more
  • How to start small consistent habits that will lead to unimaginable results
  • Forget about goals, focus on systems instead

 

Before kicking-off THE FIRST EPISODE OF OUR SUMMER SERIES, here are your resources…

 

 

Wondering what they chat about throughout the episode??

04:56 – James’s backstory…

08:14 – Why focus on daily habits??

10:47 – How does behaviour science impact our attitude with habits?

12:40 – What is the downside to goal-setting?

14:09 – What happens if there’s a gap between your goals and your systems? (And why do systems ALWAYS trump goals?)

16:11 – How does habit formation apply to Money SMARTS?

17:37 What is “Scaling Down” and how can you do it to sustain good habits?

19:27 – Why do you need to emphasise the entry point?

20:41 – What’s the one thing you need for true behaviour change?

23:13 – What common habits can you move the needle on quickly?

25:55THE 4-STEP FRAMEWORK TO BUILD GOOD HABITS AND BREAK BAD ONES

31:15 – How do you create your environment to encourage good habits?

35:40 – Why do you need to Master the Art of Delayed Gratification?

35:57 – What is The Valley of Death? (And how do you get through it?)

39:06 – GOLD!

42:35 – What does James recommend?

43:51 – How does James get so much done??

47:55 – How do you deal with disappointment and setbacks?

 

And here are the Books James Clear Recommends…

 

“A habit is not a finish line to be crossed, it’s a lifestyle to be lived”

 

 

 

Bonusisode – The Four Critical LEVERS to Financial Peace and… a Free Book! 😊

The process of building wealth is like operating an excavator truck..🤣🤯🤔

http://bit.ly/35CWlOX

What do we mean by that? An excavator comes with a few levers that you’ll need to push and pull to make sure that it’s doing what it’s meant to do. So in this Facebook LIVE, Bryce and Ben shares four levers that you’ll need to adjust to achieve your own specific and unique end goal. And the faster you can adjust each of these levers, the quicker you’ll get to your goal.

Tune in to this Facebook LIVE to learn more.

And of course… it was our Black Friday Sales folks!!! This is our first sale ever so we’re a bit excited about it AND since you’re part of our community, we’re letting you know that the offer is still up!

Here’s the link to claim your Free Copy of The Armchair Guide to Property Investing >> www.thearmchairguide.com.au

 

 

P.S. Interested to learn more about building a property portfolio? Here are our top recommendations!

 

 

RBA December 2019 – Two Big Stories from the RBA

It’s the final cut of the year folks! Did you know… for 34 months between August 2016 and May 2019, the cash rate was on a hold at 1.5%? And just this year alone, we’ve got three cuts! More about that in today’s RBA Commentary. 

Now, what’s in store for this month’s RBA Cash Rate Decision? Here’s what Ben will be unpacking in this month’s session:

  • What’s forecasted for the Global Economy in 2020
  • RBA’s Unconventional Monetary Policy – What they thought of 2019 and what they have in mind for 2020
  • Update on equity and housing market – Are we on the rise?
  • Newest update from CoreLogic Housing Market Index – Download here
  • What’s the unemployment data showing us and is wages growth still stagnant?
  • How’s the property story going across the capital cities?
  • And more…

 

 

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

Episode 260 | Q&A: Picking The Right Investment Strategy and Beware: Proposed Changes to QLD Residential Tenancy Act

How do you know if you’re following the right investment strategy? Like… how long are you meant to wait until you buy the next property? And how much should you look at spending? OR what about all the variables in the mix — say, you or your partner is about to take maternity leave, or your overall aim is to leave a decent inheritance for the kids? And where do cashflow-positive properties fit in to all this? (And what even are they??)

We get it folks… there’s A LOT to consider when it comes to picking and following the right investment strategy!! Let alone adding on top of that trying to factor in future costs, changes to income, individual needs and capital gains on each property!

So, in this special Q&A on property investment strategies, we’re going to answer a handful of our listeners’ very own questions that dive into the common dilemmas and unique situations folks are facing!

Plus, given the recent news, we’re going to touch on the proposed changes to Queensland’s Residential Tenancy Act as well!! Learn more about the ‘Opening the Doors to Renting’ Reform here.

 

Oh, and not to mention we have a very, very special gift for you…

(which we hope will even the par on the “Black Friday” discounts happening all over the globe, which let’s be honest, aren’t exactly designed to make your money work HARDER for you!)

 

FREE BOOK!! (yes, it’s a physical copy!) – The Armchair Guide to Property Investing – How to retire on $2,000 a week

www.TheArmchairGuide.com.au

 

Yes, really. We’ve got a stack of books ready to go in the office — and until we run out, we’re GIVING THEM AWAY! Here’s our crazy deal…. We pay for the book. You pay for the shipping.

CLICK HERE to Get Your FREE COPY of The Armchair Guide to Property Investing (just pay shipping, and it’s all yours, provided we have enough left!)

 

The Black Friday Announcements:

 

 

Today’s Questions

Question from Brad

Hi guys, awesome podcast! Very informative. My wife and myself are in a bit of  a unique position, we currently have a house on the family farm we pay minimal rent for. We recently bought our first home, which we are living in due to the First Home Buyers scheme, and will turn into our investment in February; my question is how long until we buy our next property? How much should we look at spending? How do you set up the next investment, as in interest only or principle and interest?

 

Question from Stephen

Hi. Just in relation to The Property Couch Facebook Page I was just wondering what makes a cash flow property if you could explain. Thanks all. Totally addicted to the podcast.

 

Question from Scott

G’Day property gurus, LOVE your work. For the case that we are holding multiple investment grade properties, have a strong cash buffer, and they are cashflow positive but not enough to fully live off. Is a hold strategy and living off the capital growth a possible retirement strategy? Of course, it’s important that they are growing at a faster rate than our living expenses, but can this strategy work long term in retirement?

The big pro for me is that it maximises the value of the inheritance which we’ll leave the kids. What are the watch outs for this strategy? Keep up the great work, and Go Pies. Scott

 

Question from Sara

Hi Bryce and Ben, thank you for your fantastic informative podcast. I listen to it a few times a week and am learning so much. I am a 36 year old woman and have a question regarding buying an investment property now, or family home in 3-4 years. I have $115K saved for a deposit. I am currently on maternity leave with my first baby and will return to work 3 days per week from March 2020 earning around $66K pa total (not pro-rata). I anticipate that I’ll stay at 3-4 days per week ($66-88K pa total) until we hopefully fall pregnant with a second baby in 2021. All of this means I will have part-time and maternity leave income until around 2023 when I’ll likely return to full-time work (earning around $115K pa).

I have wanted to get into the property market for ages but wanted to wait until I met a partner so we could consolidate our savings and buy a family home (and this only happened in the last 2 years). As it turns out my partner works freelance and has not been able to make enough to save for a deposit, so the responsibility for that is with me at the moment. We obviously hope that his earning capacity will improve. At the moment he makes ends meet with around 30K pa.

We currently rent in the inner city but would like to buy a family home in a regional area with a commutable distance to the city, as it is more affordable (median house price $650K), and offers a better quality of life for our family. With my work commitments we don’t see ourselves moving out of the city until after we have baby number 2 (so in 2-3 years).

My question is this: given that we don’t plan to move out of the city for 2-3 years should we keep saving during that time and then buy our family home in the regional area, or should we consider buying a 2 bd unit in the area we currently live (at around $500K) initially to live in (to save on stamp duty) and then as an investment property? I feel anxious about waiting another 3 years to get into the market as prices will continue to increase (albeit at a slower pace in the regional area), and at 36 years of age I am already leaving it very late to start out.  Additionally, if we were to buy a unit in the city, would we be able to use that as equity in buying a family home in 3 years’ time? Or would that mean we couldn’t get another loan? I know that our borrowing power will not be strong with me only working part-time and my partner’s low income.

I know you can’t give specific financial advice, but I thought this must be a common dilemma with the restrictions of maternity leave income bumping up against the pressures and timing of getting a foot on the property ladder. Thanks in advance for any insights you can offer,  Sara

Ps. Are you able to let me know when/if you answer my question? I’d hate to miss it.

 

 

 

Bonusisode with Nerida – Will we ever see interest rates high again? 😥

The cash rate in Australia has never been lower and most mortgage holders are paying a lot less on their loans than they were a year ago. With banks being urged to lend more and consumers and business being urged to borrow, how likely are we to see rapid interest rate rises and will they ever get back to double digits?

That’s exactly what we’re chatting about in our Facebook LIVE with Nerida Conisbee, Chief Economist for REA Group.

 

Of course, that’s not the ONLY thing we chatted about. Here are some other things we discussed in this month’s Market Wrap:
** Why speculation is a nightmare for housing markets
** Where will interest rate go from here
** Can digital banks disrupt the home loan market
** The start of a price growth in Melbourne and Sydney
** Update on wage growth and unemployment numbers
** How are things going on the retail side of things and will the festive season brings a bit of positive outlook?
** And much more!
 
AND, of course, our regulars…
++ The MOST EXPENSIVE property sold in October
++ The most clicked on property going to AUCTION
++ The most clicked on property for SALE
++ The most clicked on property SOLD
 

Want to see these properties? Click here to View the Properties (all are in the Comments section)

P.S. Interested to learn more about borrowing and loan structure? Here are our top recommendations!

 

 

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