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416 | How Can We Solve Australia’s Building Crisis? – Chat with Paul Baker

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Property is a game of finance just as much as it is a game of bricks and mortar. But what happens when this bricks and mortar – and the cost to put it all together – starts to cost too much?!  

 Today we’re addressing the complex and fast-growing issue of Australia’s building crisis. 🤯 

From rising labour costs to widespread material shortages, we’ll be exploring why the industry has ended up in its current state, when we can expect things to “normalise”, and answering the BIG question… 

Should you delay building?! And if you’re already building….what should you do to ensure the best results?!  

 Plus, we’ve got a super-awesome returning guest to help us out… 

Please welcome back Paul Baker, Director of Inside Out Property Inspections, qualified Carpenter and Registered Builder Practitioner with the Victorian Building Authority! A man of many trades, Paul also holds a Pest Control License with many years of experience inspecting residential homes…. 

 Basically, he’s THE man for turning the building industry inside out and giving you an expert guide to building and renovating today. Give it a listen now!    

 

 

 

P.S. Fun Fact! Last time Paul was on the couch, it was aalll the way back in Episode 45 😮 and it was also and our first episode of 2016!! 

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The Gold Today 
  • 1:50 – Put this in your diaries: PIPA’s 2022 Annual General Meeting!  
  • 3:34 – Our TPC Re-Edition of this ad… 
  • 5:30 – Meet Paul Baker!  
  • 7:58 – What are we seeing in the Building Industry today?  
  • 10:02 – Why builders are taking on more of the costs…. 
  • 12:32 – Fixed Price vs. Cost Plus Contracts: What’s the ratio in the market today?  
  • 16:20 – Are we overcoming COVID’s supply shortage?!?  
  • 18:48 – Upcoming Trends: Material substitutes and modular builds  
  • 20:48 – For folks halfway through building, how can they increase their chances of a successful build completion?  
  • 23:37 – What Building Insurance should you get and who does what??  
  • 26:26 – The Grey Area: Handing over projects between builders  
  • 28:03 – Is NOW a good time to be building or renovating?!  
  • 31:48 – A Builders POV: What it’s like having multiple projects on-the-go… 
  • 33:50 – How can we solve Australia’s Building Crisis?  
  • 34:09 – “Good staff is your business…”  
  • 36:11 – How do different-sized businesses “compete”?  
  • 40:39 – The Material Shortage Story: How are builders overcoming it??   
  • 43:05 – What was it like having Ben as a client? 😉  
  • 44:10 – What trends has Paul seen over the past 12 months?  
  • 47:24 – This is actually the best time for…. 
  • 51:04 – What should you be asking to verify a Building Inspector?  
  • 53:20 – Ben’s BIG Tip for Beginners!  

And… 

 

415 | When Do Out-Of-Pocket Costs Become Too Much?

By in Podcast, Q&A

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One person doesn’t know if their properties are worth the out-of-pocket costs. 💸 

Another couple isn’t sure if they should strike when the market is hot….or if it’s best to wait. 

And another investor just wants to know, ‘Are we absolutely sure that Queensland’s Land Tax is off the table?!?’  

 

We’re back with another mega-exciting Q&A Day that speaks to the Psychology of Investing, especially in an environment with rising costs and interest rates. 😮  

From the common mindset blocks that investors face (like loss aversion and sunk cost) to how you can carve a path for yourself when you just don’t know what to do next…  

We’re unpacking why investing isn’t for everyone, the Quality of Living trade-offs, how and why you’d want to split your variable and fixed rates and tons more wisdom!  

Basically folks, this episode has a bit of gold (and anxious feelings) that we can all relate to.  

PLUS, Bryce and Ben unpack and explain CoreLogic’s recent release on the 2022-23 Federal Budget and what the RBA’s recent rate hike reflects about us as consumers.  

Another fantastic episode filled with your awesome questions, tune in now folks!  

 

 

P.S. And if you want help identifying the next step on your investing path, book a free, 100% no-obligation consultation with our award-winning team of Property Investment Advisors here.  

 

Questions We Answer

Question 1: Anonymous on Confirmation that QLD Land tax is off the table 

Hi Ben 

I’m a property investor contemplating my next purchase.  

I heard that due to lack of support QLD’s premier has had to back-track on her proposed new land tax which would see the subject tax calculated on one’s total Australian land holdings (where before was only based on holdings in QLD).  

Reason I am touching base is the QLD premier stated she would have to revoke the proposal and would have to be tabled and passed in parliament. Not understanding this process, I wondered if you might know whether the proposal has been formally revoked and/or if you can advise how or where I could direct this enquiry to obtain absolute proof this land tax is now off the table.  

LOL, there is no way I would want to proceed buying in QLD knowing the new land tax could send me broke.  I need to see it set in stone.  😂 Thanks for any help you can offer. 

 

Question 2: Travis on Out of pocket expenses to maintain to IP 

Hi gents hope you are well. 

My question and advice relates to out-of-pocket expenses for me to hold 2 investment properties, because at the moment after all costs and tax rebates I’m around 15-18k PA out of pocket. I own a ppr and have a vic & qld IP.  

My Moorr platform is up to date and has me in the surplus of 4K per month but only at the moment. 

My issue is I don’t see current benefits with the high out of pocket expenses which are only going to increase & a couple of costly expenses to address on each property with water issues one being a requirement to put in a pit drain to tackle storm water and the other a fixed awning to combat heavy rain over a balcony, 4K and 3.5k respectively. 

With all this expense and the impact on quality of life due to concerns of having to pay for the next big cost I wonder if it’s even worth it. 

I have spoken with my advisor and informs me it’s ok but I wonder if this is sustainable or do I sell out for a more comfortable quality of living. 

I appreciate that there is some sacrifices but 15-18k YOY with little prospect of that moving to a favorable portfolio holding I just don’t see. 

To add there will be continuous improvements to spend in the coming years just to keep up with the age of the properties and keep them fresh I don’t feel rental increases will help the catch up. 

Please share your advice and thoughts. 

 

Question 3: Rose on A question on paying investment loans 

Hi Ben and Bryce, 

This is Rose, I love the podcast and have really enjoyed the personal stories in your summer series. I’ve never heard of financial anorexia before, but I definitely have it. So I was wondering if you could give me some guidance. 

I bought a small investment property August 2021. I had a lucky guess that interest rates where going to go up sooner than the RBA was suggesting, and I fixed the whole loan at a lower rate than the bank offered for the variable. 

However, this means I don’t have an offset account and I’m only aloud to pay off extra up to a limited amount per year. 

This is an investment loan, and the property is positively geared. 

I’ve heard old adages about how you shouldn’t pay off investment loans because they’re tax deductible, but the saver in me wants to pay down the loan. 

So I’m asking you two as the experts, should I still pay off extra on my property investment loan now, while I have a low rate for a few years, or just keep paying back the minimum and invest the extra money elsewhere?
 

Question 4: K on Using equity – the now or never mentality 

Hey gents,

Thirty-something female listener here from Sydney, and big fan of all your work. You made lockdown liveable – thank you.

While I have met with one of your team already for a free consultation, I have to say I am finding taking the plunge my biggest challenge

My partner and I will be having a baby within a year, and have some modest “rainy day” savings in our offset – which took a few years to build. We purchased our home (PPR) in late 2020 and also have an investment property (unit) in Sydney purchased in 2018.

We now have a window of opportunity to use the equity in our home and investment property to buy our next investment and scale up.

I note in a recent Q&A episode you talked about borrowing capacity (for some) decreasing over time and becoming a tad harder, plus the mortgage environment will be generally more challenging with interest rates hikes etc.

I am not afraid of the macro changes going on in the world too much, but the ultimate question is: do we strike while the iron is hot, or wait?

The challenges ahead aren’t small (new human on the way, parental leave considerations, reduced income, rising interest rates etc)?

Please help.
K, Sydney.

 

Free Stuff Mentioned… 

  • Other Episodes Mentioned:  

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – This week we’re tackling… 
  • 1:21 – We’ve had a MASSIVE upgrade to our Lifestyle By Design platform!! Check it out here.  
  • 7:44 – Quick Recap: CoreLogic, the RBA rate hike & Hot Property Data 
  • 10:33 – Feeling uneasy? This is what you should do. 
  • 13:02 – Here’s how a previous TPC Guest is implementing our lessons…. 
  • 16:01 – Why you should chase your curiosity!  
  • 17:28 – Q1) Confirmation that QLD Land Tax is off the table 
  • 18:35 – The process behind amending legislation like this!  
  • 20:40 – Off-Ramping: Why you shouldn’t be concerned…. 
  • 24:03 – Q2) Out-of-pocket expenses to maintain an IP 
  • 26:00 – This a classic conundrum that investors face…  
  • 27:56 – The Psychology of Investing: Sum Cost, Loss Aversion & Comfortable Quality of Living 
  • 29:06 – Over the long term, THIS disappears… 
  • 30:25 – Here’s how Travis can face his anxiety 
  • 31:47 – THIS is why some people aren’t suited to be property investors
  • 33:28 – “You don’t believe it”  
  • 36:45 – Why investing is just like a bottle of wine… 
  • 39:16 – Q3) A question on paying investment loans 
  • 40:19 – What is Financial Anorexia?  
  • 41:20 – Some of the catches to consider…  
  • 42:49 – How to split your variable and fixed rates  
  • 44:18 – Ben’s Answer (In theory)  
  • 46:01 – What’s the benefit of going part-variable?  
  • 46:51 – Q4) Using equity – the now or never mentality  
  • 48:29 – Why you should focus on long-term horizons!  
  • 51:04 – How to find your pathway forward…(Psstt…if you’d like help with this, why not book a free, no-obligation consultation with one of our highly qualified Property Wealth Planning advisors here.)  
  • 54:30 – The 3 Golden Dials!  
  • 57:03 – How we make the “Invisible, Visible” 

And… 

  • 1:01:47 – Made a mistake on your iPhone calculator? Here’s how you can wipe your last move 
  • 1:02:58 – Why Re-grading Property Investment in Cairns is outrageous!  
  • 1:08:08 – Keep the Qs coming folks! Submit them on Speakpipe.  

 

RBA Cash Rate November 2022: Rate Hike Again But When Will It Stop?

By in Podcast, RBA Announcement

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While the race that stops a nation will have the eyes of Australians everywhere today, another decision drawing just as much interest has been released.  

In the Reserve Bank of Australia’s (RBA) November release – which happens to coincide with Victoria’s Melbourne Cup Day – Ben breaks down our seventh consecutive rate hike from the data behind this decision to how can we, as consumers, can curb interest rates.  

And, of course, it’s not a monthly RBA update unless it’s jam-packed!  

We’ll hear Ben explain the headline changes (and 2 of his biggest disappointments) in Australia’s newly “reprioritised” Federal Budget, the darkening outlook on global growth, and his observations – and future forecasts — for our Property Market. 

Another gigantic episode that sees Australia continue to balance the tightrope between economic growth and inflation, tune in now!  

 

Plus Ben unpacks these key themes in this month’s economic update: 

  • Global growth outlook continues too sour  
  • The RBA is following through on its promise, because we continue to spend too much… 
  • Politics is a mugs game – there is just one problem – they control the economy 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

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

👉 The International Monetary Fund: “The worst is yet to come” 

👉 What we, as consumers, need to do to halt interest rates  

👉 The US hikes its rates, but why Australia won’t reach these levels… 

👉 China & Europe’s continued economic struggle 

👉 Australia’s inflation surges to highest annual pace in more than 32 years 

👉 Our “reprioritised” Federal Budget & it’s key changes  

👉 Why the new Government’s solution to Housing Affordability has a thumbs down from Ben 

👉 Has rising rates really stopped our spending?  

👉 Ben’s past month prediction, future forecasting, and how to avoid getting swept up in a fearful market sentiment.  

Plus much more! 

 

Additional free resources:

🔥 Episode 169 | Alan Oster – NAB’s Group Chief Economist – on Interest-Rate Rise, Tax Cut and The Future of Residential Property

🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

🔥 Episode 390 | Will Interest Rates CRASH the Property Market?!

🔥 Episode 404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

 

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

 

 

 

 

 

 

414 | How This Couple Is Smashing Procrastination & Retiring Early

By in Case Study, Podcast

One of the biggest derailers for any investor is…

Procrastination. 😱 

So how can you avoid falling into this trap?!   

Folks this week we’re back with another super-exciting, real Case Study about Annabelle & Jamie (Pstt – These are fake names!).  

A couple in their late 30s, they’ve spent the past 5 years procrastinating their life’s dream of building a property portfolio and moving from the bustling city of Sydney to the laidback coast of Byron Bay Hinterland. 

Overwhelmed with the number of options and their lack of knowledge, sadly, they believed that this dream has passed them by. 🙁 

Tune in now to discover the sequencing that Annabelle & Jamie can take to still make this dream a reality, and the frameworks and property plan that’ll stop them from falling into the procrastination trap (or from making more costly mistakes) ever again!  

A crazy-but-true episode that highlights the power of planning, taking action and smashing procrastination!

Listen now to see how this couple can achieve all of this while setting themselves up for a $120K passive income AND an early retirement!  

 

P.S. Keen to find out how you can build your optimal property portfolio too??  
Book a free, no–obligation consultation with our award-winning team of Property Investment Advisors here (and avoid falling into the procrastination trap!)  

 

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The gold today! 
  • 1:51 – Next we’ll be seeing a mini-budget… 
  • 3:38 – Have you got a compelling story? Share it with us in our 2022/23 Summer Series! 
  • 5:36 – A lot of financial debates are actually just people with different T_m_ H_ri_o_s!  
  • 8:56 – Today’s Case Study: Annabelle & Jamie 
  • 11:51 – Why this isn’t a “money map” it’s a LIFE map folks!  
  • 12:59 – They decided to get help because… 
  • 15:15 – These are the problems we’re trying to solve!  
  • 16:41 – Folks, time horizons are key!!  
  • 17:57 – Why a plan is important for time-poor professionals! 
  • 19:50 – Why we’ve taken a conservative approach!!  
  • 21:29 – The Big-Ticket Items  
  • 22:08 – This is why it’s CRITICAL to get your sequencing in order!!  
  • 22:41 – Their Low LVR and High Incomes are allowing them to… 
  • 24:01 – The First Asset: Trading out of the Big City to the Country
  • 26:30 – Why we don’t model over 7.5%!  
  • 27:44 – If you’re buying period homes, make sure you have this… 
  • 28:58 – …And this is why we didn’t recommend an asset further out!  
  • 30:49 – One Year Later: An Accelerator Asset (Why is it optional?!?)  
  • 34:15 – Expanding the family & smelling the roses!
  • 36:50 – How they’re retiring 9 years before they get super!  
  • 38:40 – The Hidden Derailer For MANY Investors!! 
  • 40:20 – The real value you get when you have a plan!  
  • 44:42 – This is why they’re a LUCKY couple… 
  • 46:50 – We always think it’ll be different THIS time folks…. 
  • 49:43 – What defence do they have?!  
  • 50:57 – During accumulation phase, this is actually your biggest asset!  
  • 52:40 – The Golden Frameworks  
  • 54:25 – The Outcome Of This Plan (aka. The benefits they’ll be reaping!)  

And… 

  • 57:45 – This is why you should always leave a buffer!  
  • 1:01:04 – An announcement for our Moorr Users!  
  • 1:01:46 – Auction Clearance Rates: Good news on the horizon?? 
  • 1:04:03 – Why we need to stop spending folks… 
  • 1:04:57 – Today’s Buffer Rate = Mortgage Prison!  

 

413 | The Future of Price Growth in Australia

By in Podcast, Q&A

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Passing on interest rates to tenants. Updating property plans. The future of price growth and…  

Restructuring your mortgage (is Line of Credit still the best?!)   

Yep.  Folks, we’re back with another ultra-packed Q&A session that’s all about being smart with your money in an unpredictable market.   

 Here’s a teaser of what else we cover… 

  • How can landlords offset these extra costs from rising interest rates?!  
  • The #1 biggest indicator that it’s time to update your property plan 
  • Why housing prices WON’T stagnant and housing prices will STILL grow – even given today’s market!  
  • The Veblen Effect: What it is and why it’s important in today’s market cycle!  
  • Where most of Australia’s growth actually came from (aka. A short history lesson)  
  • The Role of Income Growth, Immigration and Inheritance  
  • What are Quasi Lines of Credit?! (are they a good idea??)  
  • The markets Ben is (and isn’t) worried about in this market cycle, plus  
  • Tons more gold!!  

It’s another massive episode folks, give it a listen to get the facts and cut through the noise! 

 

Questions We Answer…

Question 1: Janet on When should you update your plan? 

Hi Ben and Bryce, 

My husband and I are big fans of the podcast. 

We have learned so much listening to the both of you over the years. 

We’ve actually been to your team Empower Wealth in North Melbourne for financial planning and property investment advice and that was before our honeymoon. 

Now we have 1 child (14 months old) and 2 properties in, one principal place of residence and 1 investment. This was all factored in by your team as part of our lifestyle by design plan. 

There is a component to the plan which is to get our 3rd property in a few years time as investment towards our retirement plan. 

However, with the changing market, I’m starting to wonder if its time to bring things forward or we stick to the plan. 

So my question is once you’ve got a property investment and a retirement plan set up, how often would you recommend getting this revised and looked into? 

I would love to hear from you two and keep up the good work on the podcast. 

 

Question 2: Adam on Can you pass on interest rate rises to tenants quickly? 

Hi Boys, 

Love the show and thanks for all the tips and all the advice that you provide each week. 

My wife and I have 3 investment properties and given the market is a bit softening at the moment and there’s a lot of uncertainty out there, we think it’s really good time to try to buy again. So we can get a loan at the moment our broker confirmed to us that we can borrow at the moment. 

However, when I run our numbers on next year in  about 12 months time, our 3 properties that we do have at the moment are currently on the fix rate and we fix them at about 2% interest and all 3 come off their fix periods in about 12 months time. 

So if we did buy again now by fourth place, when the loan repayments we’ve got on the other 3 next year did it at fixed period, that’s more than $2000 a month extra in mortgage repayment will be up for so we’ll be in trouble if we borrow again right now so we’re a bit in a snag. 

I’m just curious in your thoughts, I think you’ve mentioned before in your show that the Australian economy, I think is about, $40B in residential loans that fixed at the moment with low interest rates  in the last few years and they’re all gonna be coming off fixed periods next year. 

So there’s gonna be a lot of people, lots of household all of a sudden have to find material amounts of money each month in extra loan repayments. For those who are investors like us, we can just wanna try to pass on a lot of these costs to our tenants and raise the rents that they are paying given there already is rental crisis across the country.  How do you see this playing out in the economy. 

If you have a lot of landlords all of a sudden wanting to put the rents up substantially because interest rates have blown up and loan repayments are higher, do you think we’ll be able to recover some this cost through increasing the rents at all?
 

Question 3: Michael on Interest Rates, Borrowing Capacities and long term impact on price growth 

Good day Ben and Bryce. 

Hope you’re both well. 

Ben, condolences on the loss to Sydney, mate.  I know that’s probably a tough one. 

My question to you both is regarding to the overall pricing of housing and I know it’s broad question but with regards to the correlation between interest rates and the impact it have on borrowing capacity. 

I know there’s been peaks and troughs over the last 30 years but I’ve seen over time you know a gradual decrease on the amounts that we pay on the interest rates therefore our borrowing capacity increased. 

My question to you is that now that we’ve reached the bottom point where we’re on our way up, do you foresee that having a long term impact on the increase in housing value? 

I know there’s other factors in play but as far as borrowing capacity goes, I can see that there is quite a strong link in interest rates and the borrowing capacity. 

Just curious to get your thoughts on that and what’s the impact it will have. 

Thanks. 

 

Question 4: Karen on Borrowing Strategy – what is the optimal review? 

Hi Bryce and Ben, 

My name is Karen and I have a question about refinancing a principle place of residence and investment properties. We currently have a loan of credits on our principle place of residence.  

We used this loan of credit to purchase 3 investment properties and these 3 investment properties are all with different lenders. With the current interest rate rises and some of these loans coming off fixed interest, we are now wanting to refinance some of those. 

Our mortgage broker, this is my question for you, our mortgage broker is suggesting because of our age which we are 51 and 52 respectively, we have high disposable income because our children are all over 18 and that we combine all of our loan in to one big facility with AMP and have it split in to various splits and so our home loan on PNI and then the various investment properties as interest only. 

I’m really concerned with this approach because it goes against everything that I’ve listened to in your podcast today and I’m would just be really interested to hear what you have to say on the next approach. 

So basically the splits for the investment properties would be interest only and our principle place of residence P&I and she’s saying that this is the only way forward for us to be able to refinance the whole lot. 

Ideally, I’d like to keep the line of credit. 

I like the flexibility of it and I’d like to keep the investment properties with loans separate to our home. 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – What we’ve got in store for you… 
  • 1:18 – Folks, this is how you can get a free Start & Build Course! 
  • 2:53 – Negative things happen. Negative mindsets make it…. 
  • 5:19 – Question 1: When should you update your plan? 
  • 6:56 – How you can tell it’s time to change!  
  • 7:38 – And this is WHY you’d want to bring it forward!  
  • 9:20 – 97% of the time this what you’ll be doing…  
  • 11:21 – THIS is where they sit on our “7 Grades of Financial Wellbeing” scale (Don’t know what this is? Take the quiz here!)  
  • 12:46 – Question 2: Can you pass on interest rate rises to tenants quickly?  
  • 14:42 – We haven’t seen this for the last 3 years… 
  • 15:44 – When are we going to see the 3 big tranches?! 
  • 16:15 – Rents will be going up…  
  • 18:34 – How Adam can offset costs!  
  • 20:41 – Legislation that property owners should consider!  
  • 22:47 – THIS is a good rule of thumb for measuring costs and profit… 
  • 25:38 – Want to future forecast your modelling? Try Moorr, our online money management platform and it’s forecasting feature: MoneySTRETCH.  
  • 27:48 – Question 3: Interest Rates, Borrowing Capacities and long-term impact on price growth 
  • 28:57 – Most of this growth has to do with Australia’s lowering cost of M___!  
  • 29:40 – Income growth, affordability & interest rates  
  • 31:36 – Ben’s predictions for wage and population growth! (THIS will always push growth)  
  • 32:38 -These are the markets Ben’s worried about… 
  • 32:55 – The Role of Inheritance and Immigration 
  • 34:51 – Recap: What were the “Roaring 20s”?  
  • 35:17 – Why housing values WON’T stagnant! 
  • 36:14 – This is why price growth will continue! 
  • 38:40 – If you haven’t check out THIS amazing chart (bottom of page 1) from CoreLogic… 
  • 39:17 – The Veblen Effect 
  • 41:40 – Question 4: Borrowing Strategy – what is the optimal review? 
  • 44:21 – Who is AMP?  
  • 45:19 – Why you don’t really need a line of credit… 
  • 46:08 – Some other great options!  
  • 47:06 – What Ben does with HIS line of credit!!  
  • 47:23 – Why there’s still opportunity for older aged Australians… 
  • 49:51 – What is a Quasi Lines of Credit?!  
  • 50:34 – If you want more on How to Beat the Banks, check out Ben’s newest educational series here.  
  • 51:17 – Leave us a Question on our Speak Pipe – it’s never been more important!  
  • And… 
  • 51:50 – Did you know, the body of the Apple phone is actually pretty cool. Here’s why… 
  • 54:12 – The Top #10 Most Successful Celebrity Investors 
  • 57:22 – Honourable mentions for the women… 

 

412 | The Best & Worst Performing Markets Over 30 Years! – Chat With Tim Lawless

By in Podcast

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With a developing rental crisis, interest rates still rising and an economy unsure if it’ll be pulled into a recession…

It’s no surprise that there’s been A LOT of noise around what today’s data means for the future of Australia’s economy and property market.   

To slice through this noise (and bringing our guest streak to 3 weeks) we’ve brought in one of Australia’s biggest data-crunching experts and previous Property Couch guest… 

Please welcome back…

CoreLogic’s Research Division Founder, Tim Lawless!  

As Executive Research Director of CoreLogic, Tim heads up a team of analysts in Australia and New Zealand, reporting on property market conditions and the interplay between economic and demographic forces (phew talk about wide coverage!)   

Tune in to hear his origin story, from growing up in a law-less money household to meeting his wife Helen who turned his financial picture around.  

Fast forward to today where Tim sits at the coal face of Australia’s housing data; he’s breaking down what REALLY happened to housing values in September… 

And why, especially during times like these, it’s important to play the long game (using the last 30 years of housing values as proof!)  

PLUS, we unpack the market winners and losers over this period to highlight some valuable market lessons.  

Listen in now folks to get a true understanding of what the figures really mean! 😲 🤯

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – A sneak peek of today 😊  
  • 1:34 – Yep…we’re giving you 2 bonuisodes?!  
  • 3:37 – This is how expensive procrastination really is!  
  • 5:56 – Meet Tim Lawless!  
  • 8:30 – Growing up in a law-less money household!  
  • 10:50 – THIS played a crucial role in increasing transparency around property investing!  
  • 12:03 – The best advice Tim ever received ( + life after buying his first property)  
  • 13:02 – So…how did he set up his money management systems??  
  • 13:53 – Highlights from Australia’s Housing Values in September  
  • 15:59 – Did the 25-basis points cash hike surprise Tim??  
  • 16:56 – We might find the housing bottom out in…early 2023?!  
  • 18:38 – Should we expect a confidence shift in this market cycle??  
  • 20:48 – APRA’s 3% Buffer: Will it be relaxed?  
  • 22:29 – “It was an absolute cash grab…”  
  • 24:20 – QLD’s new forecast post the scrapped land tax…  
  • 25:40 – The 30-Year Long Game: Why is it important??  
  • 27: 59 – Folks, if you’ve got market anxiety, let this sink in… 
  • 30:01 – Comparing House Values Across the Decades: Why did we see these results?  
  • 32:26 – This reflects the strength of our economy… 
  • 34:55 – What we saw in Perth is a reflection of these cycles!  
  • 36:47 – Which markets were the best performing over 30 years?? (The Regional winner might surprise you!)  
  • 38:10 …and the lowest-performing markets! 
  • 40:23 – What degree of effort is put into the research at an SA2, SA3 and SA4 level?  
  • 43:27 – Why measuring home values is a difficult task… 
  • 44:24 – Where are the top #3 SA3 areas?!  
  • 46:48 – The Importance of Scarcity Value 
  • 47:25 – We’ve said it once, we’ll say it again: It’s time in the market, not timing the market!  
  • 50:30 – Check out THIS graph (bottom of page 1) summarising growth and volatility over the past 30 years!  
  • 53:29 – Houses Vs. Units: Tim’s 5-Year Predictions!  
  • 56:22 – Will regional markets outgrow cities?!  

And… 

  • 1:00:09 – Our Key Takeaways 
  • 1:03:10 – How to avoid absorbing negative property noise!  
  • 1:05:38 – We need to allow borrowers to borrow!  
  • 1:06:07 – Want to learn how to beat the banks? Watch this.  
  • 1:07:34 – Bryce & Ben’s Bowling & Bingo Escapades  

 

Bonusisode: The Art of Investing in Volatile Markets – Chat with Michael Savy

By in Free Resources, Podcast

With the turbulent state of today’s markets, it’s no surprise that there’s been a lot of noise around the future of Australia’s market and what it means for investors. 🤯

With many conflicting trends and numbers — and a lack of clarity around the origins of Australia’s inflation — it’s hard to know what remedy is needed from the Reserve Bank of Australia or how to keep successfully investing in such markets.

In Part 2 of this educational series, Ben Kingsley, Managing Director of Empower Wealth and Michael Savy, Partner and Chief Financial Planner of Empower Wealth, break down:

👉 Today’s market data (what do the numbers really mean and what trends are we seeing!)

👉 Michael’s Car Analogy: What do cars, crashes and catching flights have to do with COVID?

👉 What “noise” you should and shouldn’t be listening to, and

👉 How to remain calm (and keep investing) during unpredictable market conditions!

 

Watch the video now:

Free Stuff Mentioned…

 

Here’s some of the gold we cover… 

  • 0:00 – Where we left off…
  • 0:54 – The Famous Car Analogy
  • 4:39 – Where did Australia’s inflation come from?
  • 6:51 – Taming Inflation
  • 9:09 – Inflation & Interest Rates
  • 13:28 – Data Dependent: Let’s break down the numbers
  • 17:13 – Market Analysis
  • 22:38 – So…what opportunities are still here today?
  • 24:29 – THIS is what happens when inflation runs away…
  • 25:27 – How to keep investing in volatile markets!!

 

411 | Meet the NSW Premier: Reforms, Housing Affordability & Cutting Red Tape – Chat with Dominic Perrottet

By in Podcast

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Folks, in honesty, today’s guest needs no introduction – although we’re still going to give him one… 😉

Previously the Treasurer in the Berejiklian Government in 2017 and 2019 (following the re-election of the NSW Liberals and Nationals) he has also served as the Minister for Finance, Services and Property.

A proud husband and father to 7 kids, please welcome to the couch…

The Hon Dominic Perrottet MP, NSW Premier and Member for Epping in the NSW Legislative Assembly!!!!  🎉😱🤸‍♀️ 

Together, we’re pulling back the curtain on NSW’s newest property reforms, and examining his role in the scrapping of Queensland’s diabolical land tax! 

From solving the impending housing affordability crisis to helping everyday Aussies get onto the property ladder and build wealth, the Hon. Dominic Perrottet is sharing what these reforms actually mean for you and why their critical to the future of Australia’s property market.  

But of course, that’s not all… 

Like all our guests, we get to dive a little deeper into who the Premier of NSW is, looking at his childhood and his money story growing up.  

(Psst here’s a teaser: there’s a self-funded school exchange to Italy…at just 15 years old!!)  

An extremely insightful episode, the Hon. Dominic Perrottet shines a light on what managing an entire state looks like from the inside.  A fantastic episode to kick off October, tune in now folks!!  

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – What we’re discussing with THE Premier of NSW!!  
  • 1:05 – Ladies we want to hear from you! Help us inspire others as a 2022/23 Summer Series guest!  
  • 3:14 – Never judge a book by its cover… 
  • 3:39 – Meet the NSW Premier, the Hon. Dominic Perrottet!  
  • 4:51 – What was his first job straight out of university?  
  • 5:58 – Growing up in a family of 12?!? 
  • 7:04 – How he funded his exchange program in Year 10! 😮  
  • 8:12 – Behind the political curtain of the scrapped QLD Land tax… 
  • 12:13 – The proposed tax set to help First Home Buyers!!  
  • 14:27 – And this is why Ben is a massive supporter of it… 
  • 16:43 – Who is the Shared Equity Scheme Trial targeting, and why? 
  •  18:55 – The true goal of this initiative!  
  • 19:30 – This is the process the Hon. Dominic Perrottet goes through before making changes…  
  • 20:33 – Why has he increased the Accelerated Infrastructure Fund?? (More exciting than it sounds folks!)  
  • 22:28 – How this will materialise in Western Sydney 
  • 23:19 – This is what will bring the prices of houses down!!!  
  • 24:14 –  “You can’t kill the goose that lays the golden eggs” 
  • 25:13 – Slashing through the Red Tape: Where did the problems begin?  
  • 27:47 – Why incentivising councils is important  
  • 28:53 – Ben & Bryce’s Radical Pitch: The Override Rule  
  • 30:18 – This is how local community charm& housing affordability can be achieved…. 
  • 31:57 – The Hon. Dominic Perrottet on the Stretched Commuter Belt  
  • 33:45 – Why working with regional councils is key!  

And… 

  • 34:37 – All Politics Aside…Our 2 cents on today’s discussion!!  
  • 36:08 – If you have property ideas you’d like to share too, we’re inviting you to the couch! 
  • 36:54 – So…is the First Home Buyers Scheme actually a good idea?!  
  • 38:38 – Has Siri been chiming in when you don’t want? Here’s how you can turn Siri off on your Apple Watch.  
  • 40:27 – A Series of Scrapped Reforms: The UK Mini Budget & QLD Lands Tax!  
  • 42:50 – A subdivided AND untouched 35-year-old house sells for…. $3M?!?!?  
  • 44:05 – 2023 as the bottom?! You’ll have to tune in next week...😉  

 

RBA Cash Rate October 2022: How To Stop Inflation Psychology!

By in Podcast, RBA Announcement

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Overnight Update: This video was filmed & produced before the UK’s mini-budget was scrapped.

Folks, Ben’s RBA Monthly Update doesn’t get much bigger than this… 

The Reserve Bank of Australia has once again lifted interest rates, property market sentiment is shifting fast, and despite all, Australia’s retail spending remains at record high levels.  

Tune in now to find out if we have finally broken the 50 basis point hike rate trend as we slowly rise above a neutral cash rate.

Meanwhile, on the global scene, the United States’ inflation runs rampant, China battles the impacts of COVID on its economy and global growth has sunk even lower. 

This update points to the looming question: Will Australia be pulled into a global recession? 

(Psst…Stick around to the end of the video to get access to free resources on how to beat the banks at their own lending game!)

 

Tune in to hear Ben unpack all this plus these key themes:  

  • What does Governor Lowe mean by “Inflation psychology in the community” and as consumers, what can you do to help stop inflation!! 
  • Interest Rates are going up again, but when will the RBA take a pause on the cash rate, and why?  
  • The crucial downside risks & upside opportunities to Australian property values in the short term 

 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

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

👉 Currency Crush: The US Dollar vs. The World

👉 The Eurozone is in for a cold winter…

👉 Unpacking the adjusted global economic growth figures

👉 A dip in retail spending: have we reached the peak?

👉 Digging, Growing & Tourism: The Backbones of Australia’s Economy

👉 Australia’s GDP Data for the June Quarter

👉 CoreLogic September Price Movements

👉 To watch the free bonuses on how you can beat the banks at their own game, click here.

And heaps more!

 

Additional free resources:

🔥 Episode 169 | Alan Oster – NAB’s Group Chief Economist – on Interest-Rate Rise, Tax Cut and The Future of Residential Property

🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

🔥 Episode 390 | Will Interest Rates CRASH the Property Market?!

🔥 Episode 404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

 

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

 

 

 

 

 

 

410 | What Happens Next? Market Reset, Rental Crisis and How To Solve It All! – Chat with Eleanor Creagh

By in Podcast

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Want to know what’s actually going on with Australia’s anxiety-inducing rental crisis?  

Or where the market is really heading (based on insider’s data and knowledge?!)  

Well folks, we’ve got an extremely wise and exciting guest sitting on the couch today to share just this! Please welcome…. 

Eleanor Creagh!  

She is the Senior Economist at REA Group (the brains behind realestate.com.au) and is a trusted financial commentator.  

Specialising in property, financial markets and macroeconomic policy, she has a wealth of experience and knowledge within both domestic and international markets, and… 

She’s here to share all of this knowledge today!  

Here’s a sneak peek of the Q’s she’s tackling… 

👉 Is the Commuter belt boundary extending??
👉  Are we truly locked and loaded for a market crash? 
👉 Will Units vs. Houses be favourable in this cycle? 
👉 How do the experts identify we’re in a rental crisis and more importantly, how do we get OUT of one?!? 
👉 What is a realistic market forecast for 2022/23?
👉 How much further will interest rates really rise? 

 And so much more!!  

(Including how she made her life changing career jump, from studying Veterinary Medicine…and ended up in Australia!!)  

Tune in now to discover what the data reveals about today’s market, and where it’s really headed! 🤓  

 

Free Stuff Mentioned… 

  • Want to be on The Couch? We’re calling all potential 2022/23 Summer Series Guests! If you’d like to share your story, reach out to Stig here (We’d love to hear from you!!). 
  • PIPA’s 2022 Breakfast – The Property Investment Professionals of Australia (PIPA) is hosting a breakfast seminar! The event will feature an expert panel who will discuss the future of property investment, especially in light of QLD’s New Land Tax. Click to get your tickets.  
  • Read the results from PIPA’s Annual Property Investor Sentiment Survey 2022 here, and its official statement on its findings here.
  • For more from Eleanor Creagh, read her articles published on realestate.com.au
  • Leave us a Question! Have a problem you don’t know how to solve? Ask us on our SpeakPipe now. (Plus, you’ll get a free Start & Build course!) 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The Incoming Gold! 
  • 2:31 – Exciting things on the horizon! (Don’t miss your chance to get on the couch!)  
  • 3:47 – The world is not driven by greed, it’s driven by E_ _ y!  
  • 6:43 – Introducing Eleanor Creagh!  
  • 7:40 – How Eleanor went from Veterinary Medicine to…Economics?!?  
  • 10:25 – Her First Job & Moving to Australia! 
  • 12:07 – Getting fined by the family ledger 😂  
  • 14:12 – From financially conservative to becoming a confident investor 
  • 16:25 – Australia vs. UK’s Property Market  
  • 17:37 – Trends REA’s observing in the 2022 market…  
  • 21:33 – This is how realestate.com.au tracks demand!  
  • 22:54 – Have Australia’s Auction Rates found their bottom?!  
  • 24:54 – Measuring Buyers Intent: how many folks are still property hunting?  
  • 27:27 – Unpacking markets within markets!  
  • 30:20 – Is the Commuter Belt expanding?!? 
  • 32:43 – Immigration & The Regional Shift!  
  • 34:51 – The Big Rental Squeeze  
  • 36:50 – How To Solve Australia’s Grand Rental Crisis  
  • 38:51 – Houses Vs. Units: What will we see favoured in this market cycle?  
  • 41:18 – We see THIS in every market cycle… 
  • 42:00 – APRA’s immovable buffer rate: what does it mean for you?? 
  • 48:05 – Eleanor’s Crystal Ball: What can we expect from the RBA and its interest rate?  
  • 52:27 – Is inflationary pressure set to ease?  
  • 54:08 – Realestate.com.au’s ultimate 2022 outlook  
  • 55:21 – Predictions of Each State  

And… 

  • 56:33 – Reflecting on the chat today… 
  • 58:59 – What folks need to do over the next couple months!  
  • 59:56 – What does your phone know about you??  
  • 1:02:43 – THIS is what we discovered from PIPA’s Sentiment Survey (Spoiler: QLD’s land tax is NOT helping the market!)  
  • 1:08:55 – This is the group that will suffer the most…🙁  
  • 1:11:35 – No less than a 300% increase?!  
  • 1:13:32 – Stay tuned….We’re flying to the Premier’s office next week!?!

 

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