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

By in Podcast, Q&A

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With higher interest rates and tighter budgets on the forecast, some folks have been left wondering… 

“How does lifting interest rates – when everything is already so expensive – actually help with inflation??” 

And for today’s episode – what do interest rates and inflation have to broccoli and property?! 

 

To answer this, we’re holding a special 101-crash course in inflation to explain why the Reserve Bank of Australia has taken its course of action and Ben dovetails it all together to demystify how it impacts and interacts with the Australian property market.  

And since it’s a massive Q&A Day, we’ve got tons more inflation-themed questions from folks probably wondering the same things as you! We’re unpacking… 

  • Debt to income ratios (aka. the tool banks use to assess your credit worthiness): how can you restructure your debt to best benefit you?  
  •  And for investors wanting to release equity – beware! We’ve recently been hearing certain tax schemes that can reduce your 20-year loan to …4 years?!  

 

Tune in now folks, this episode has tons of gold on inflation to help you get through these rate hikes.

 

Free Stuff Mentioned… 

  • Fill out PIPA’s 2022 Sentiment Survey: Folks, this year’s Sentiment Survey by the Property Investment Professionals of Australia (PIPA) is perhaps one of the most important ones we’ve had yet! Let us know your experiences as an individual in the property market and have your voice heard. Complete the survey here.  
  • BingeGuide to Property, Finance & Money Management – Download here  
  • FREE eBook – Make Money Simple Again  
  • FREE Book (Just pay for shipping!)– The Armchair Guide to Property Investing  
  • Introducing moorr: our newest evolution of the MyWealth Portal! Check it out here.  
  • Let us know how we’re doing! We want to know if we’re doing the right thing. Leave us a review here and let us know your thoughts.  
  • Watch the RBA’s August Announcement here: Hear the Reserve Bank of Australia’s newest cash rate here.  
  • Send us a question: Be featured in our next Q&A episode! Send us a Question via the SpeakPipe widget here.   

 

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

 

Here’s some of the gold we cover… 

  • 0:00 – A preview of today 😊  
  • 2:00 – The Sentiment Survey + tons of other free resources here!!  
  • 6:38 – 4 Golden Statements that Charlie Chaplin gave us…  
  • 8:52 – Q1) Inflation, Interest rates & Broccoli 
  • 10:11 – Inflation 101: Key concepts to understand!  
  • 12:21 – Was inflation imported into Australia???  
  • 12:59 – THIS is what happens if inflation gets out of control… 
  • 13:52 – So why has RBA taken this course of action??  
  • 15:14 – It’s about creating B_f_e_s  
  • 16:34 – Why Australia’s culture + housing system will ensure we will prevail!  
  • 18:14 – It’s because of these that lettuce and broccoli is expensive!  
  • 20:10 – The Reserve Bank of Australia’s 2 Goals  
  • 21:10 – Q2) Withdrawing Equity and Offset Mechanics 
  • 22:14 – Let’s be clear! This is a finable Tax Scheme!!  
  • 24:24 – Beware of people selling this theory… 
  • 26:20 – Folks, we see so many people make these mistakes!!  
  • 29:12 –How we would solve this…  
  • 31:30 – Going Liquid: Listen to this for options for releasing your equity!  
  • 35:10 – Q3) When Should I buy again? 
  • 37:40 – Should Ben (The question-asker) buy local?? Go through this thought process folks!  
  • 39:30 – The Commuter Belt Reset  
  • 40:04 – Why this question is really about Cost vs. Benefit!!  
  • 41:24 – How do CFOs, CEOs, Paper Planning and this question relate??  
  • 44:02 – Q4) Debt to Income (DTI) ratio  
  • 44:45 – What is DTI (and why does it matter??)  
  • 44:52 – How investors restructure debt  
  • 46:37 – How do lenders calculate your borrowing power??  
  • 48:47 – What happens when your DTI exceeds 6…  
  • 50:05 – The role of Loan to Value Ratios! 
  • 51:40 – Getting a lender who isn’t DTI certified – this is the catch!! 😮  
  • 54:28 – Make sure you unpack these numbers behind the DTI Scare News…  
  • 55:35 – Why new estates have high DTIs!  
  • 58:40 – How to change your DTI + get through this high-interest rate period!  
  • 1:01:40 – Have trouble managing discretionary and non-discretionary spending? Why not try moorr!  
  • 1:02:12 – Does that mean all property prices will drop?!  
  • 1:03:38 – Be a part of Q&A sessions! Send us a SpeakPipe here.  

And… 

  • 1:04:46 – Sticky fingers? Closed a tab by accident? Use this shortcut!  
  • 1:06:18 – How does property interact with inflation??  
  • 1:09:11 – What this means for property owners… 

 

Episode 403 | Do You Need a Buyers Agent in Today’s Market? (Part 2)

By in Podcast

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Continuing from last week’s episode, we’re back with PART 2 of Do You Need a Buyers Agent in Today’s Market?  

As we’ve said since our earliest podcast episodes, folks end up paying in 1 of 4 ways, and choosing to work with a Buyers Agent means you’re also choosing to pay in the best way… (especially in today’s market, you don’t want to be paying in any of the other ways…) 

This week we’ll be diving deeper into this concept and unpacking the 5 benefits that Buyers Agents bring to property hunters – especially in today’s turbulent market.   

We’ll be covering… 

  1. Experience: Like why is it important for Buyers Agents to “pound the pavement” daily?  And how can you actually select an experienced one?
  2. Negotiation: The 3 Reasons Buyers Agents negotiate better (Have you heard of Gazumping??) Plus some real examples of effective negotiation that’s led to price reduction…. 
  3. Emotional Guidance: ONE of the key things Buyers Agents apply to save you lots of head (and heart) ache later down the track… 
  4. Time-Saving: The Magic of Momentum and Curation  
  5. Money Saving: Why PROCRASTINATION will cost you the most and other ways you pay… 

And so much more!   

We’re also welcoming back an extremely special Winter Series Guest who’s weighing in on whether the cost of a Buyers Agent is truly worth the benefits ~ stay tuned to find out who it is! 😉  

 

Tune in now folks, we’re driving this one home with a bang!  

P.S. Make sure to stick around till the end to hear Ben unpack PICA and PIPA’s newest findings on whether rent has kept up with inflation (and if you’re a landlord we want to hear your experiences – fill out PIPA’s 2022 Sentiment Survey here and have your thoughts heard!!)  

 

Free Stuff Mentioned… 

 

Here’s some of the gold we cover… 

  • 0:00 – A taster of what we’re covering today…
  • 3:10 – How can you feel more gratitude folks?  
  • 7:00 – If you’ve found value in us, could you please share THIS episode folks… 😊  
  • 8:03 – A kind review – this is why we do what we do!  
  • 9:08 – RECAP: Do You Need a Buyers Agent in Today’s Market? 
  • 10:39 – Benefit #1: Experience – The #2 ways you can tell 
  • 13:01 – Why any good Buyers Agent needs to “pound the pavement”…. 
  • 14:34 – What do Buyers Agents look for??  
  • 17:01 – Why they are Champions of Sequencing 
  • 17:49 – #1 HUGE advantage of using an experienced Buyers Agent!!  
  • 19:58 – They avoid making N_G_T_ _ _I_N mistakes!  
  • 20:50 – Ben’s Favourite “Oops” Story  
  • 23:27 – How to Choose an Experienced Buyers Agent (Ask THESE Questions!!) 
  • 25:18 – Benefit #2: Negotiation 
  • 26:00 – The COMP Analysis    
  • 28:12 – Acknowledge THIS before going in folks… 
  • 30:07 – The 3 Reasons Buyers Agents negotiate better (Have you heard of Gazumping??)  
  • 31:45 – Emotional Intelligence vs. Ego  
  • 34:15 – The Key Advantages of Agent Relationships!  
  • 37:00 – Real examples of how effective negotiation has led to price reduction!!  
  • 38:47 – Benefit #3: Emotional Guidance: The role of a Collaboration Partner  
  • 42:00 – Benefit #4: Time Saving  
  • 43:16 – The Magic of Momentum!!   
  • 45:05 – Scraping: How Buyers Agent minimise time but upscale volume  
  • 47:02 – Curation and #4 other massive benefits! 
  • 48:58 – Benefit #5: Money Saving: No Buyers Agent EVER says this… 
  • 49:29 – Folks, you pay 1 of 4 ways (we’ve said it once, we’ll say it again!)  
  • 52:22 – Why PROCRASTINATION is the biggest cost!!  
  • 55:28 – A Return Winter Series Guest weighs in on the cost vs. benefits of using a Buyers Agent!!  
  • 58:23- The Value Calculation many folks struggle with…  
  • 59:38 – Want to become a Borderless Investor? This is how a Buyers Agent could help!  
  • 1:01:00 – How Buyers Agents stop emotional buying… 
  • 1:02:24 – The Amazing 15-Minute Negotiation which Landed their Ideal Property  
  • 1:05:52 – How they purchased without even seeing the property in person!! 😮  
  • 1:08:00 – “I feel like I cheated…” 
  • 1:09:14 – The Best Mindset to have when buying during a pandemic!!  
  • 1:12:20 – The #1 piece of advice for folks considering a Buyers Agent!  
  • 1:15:40 – It’s about the VALUE Buyers Agents provide folks!  
  • 1:16:43 – THIS is when you might not need a Buyers Agent… 

And… 

  • 1:18:40 – Have you heard of a Sous Vide?? (Folks this is a FANTASTIC kitchen tool!)  
  • 1:20:38 – Has rent kept up with inflation?!? Check out PIPA and PICA’s new market findings here.  
  • 1:27:11 – Are you a landlord? We want to hear from you!! Complete PICA’s 2022 Sentiment Survey here and have your thoughts heard.

 

402 | Do You Need a Buyers Agent in Today’s Market? (Part 1)

By in Podcast

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If you’ve been listening to the podcast recently, you’d know that we’ve been encouraging folks out there to keep investing despite today’s property market – basically, to be “greedy when others are fearful,” in the wise words of Warren Buffet!

But…how are you supposed to get into the market – or even make progress – when you don’t have the experience or the time to invest? 

Folks, the answer is a Buyers Agent! 

We’ll be deep diving into what a Buyers Agent actually does, the #5 critical roles they fulfil on behalf of their buyer and why they are super beneficial for folks looking to invest in today’s property market!

 

Here’s a teaser of the #3 biggest reasons to use them… 

#1: The Herd is ______  

#2: The War Chest is Getting ____   

#3: The ____in the Desert 

 

And you can be sure you’re hearing this from a real industry expert…Yep. For those of you that didn’t know, Bryce is a Buyers Agent himself with more than 18 years of experience under his belt!!! 

But we aren’t just giving you the positives – we’ll also be sharing the top 3 things to consider BEFORE taking on a Buyers Agents and the red flags which indicate it’s a no-go.   

Listen now to understand the importance of a Buyers Agent and if you really need one in today’s environment!!  

 

P.S. And because we’ve got SO much gold to share on this topic, we’ve had to break it into a 2-Part Series!! Stay tuned next week when Ben and Bryce share real-life stories and one of our favourite Winters Series Guest will return for a special appearance….😉

 

Free Stuff Mentioned… 

 

Here’s some of the gold we cover… 

  • 0:00 – A sneak peek of today’s episode… 
  • 1:53 – Let’s dissect RBA’s New Announcement  
  • 5:20 – Nervous about rising rates? Listen to this part! (We all have those feelings too)  
  • 14:18 – What does it really cost you?  
  • 15:40 – A disclaimer from Bryce (Key Message: Take value where you see fit!)  
  • 17:25 – So…what is a Buyers Agent??  
  • 18:28 – The 8 Critical Roles they fill  
  • 19:32 – The 10,000 Hours: What makes a good Buyers Agent?  
  • 25:26 – The 2 things a Buyers Agent MUST be good at!!  
  • 27:53 – The two biggest anxiety points during a transaction!   
  • 29:20 – Sometimes it’s your f____ and f_____ who are the hardest to convince! 
  • 30:22 – Looking to get a Depreciation Schedule done (or fresh content straight in your inbox?!) Tune in here.  
  • 32:23: Lets Recap! 
  • 33:13 –The Buyers Agent Equation: How do you benefit?  
  • 34:16 – The #5 Unreplaceable Benefits of Using a Buyers Agents 
  • 40:40 – The Unseen Advantages 
  • 41:45 – A teaser of next week…(Real stories from Bryce & Ben?! One of our fav winter series guests is coming back?? Yes please!)  
  • 42:29 – The Home Buyer brief vs. The Investors brief 
  • 44:35 – Generally, Home Buyers get charged….more?!  
  • 45:43 – The 3 Services: Full vs. Negotiation Only vs. Hybrid 
  • 47:47 – The most time-consuming part of the job is…. 
  • 50:02 – 3 Things to Consider BEFORE selecting a Buyers Agent! – #1) I_D_ _EN_ _ C_  
  • 52:31 – #2) F_ _ _ (The ULTIMATE Betrayal!)  
  • 56:15 – #3) LI_E_S_  
  • 57:58 – Our Top #3 Reasons to Use a Buyers Agent right now…. 
  • 58:41 – Reason 1: The Herd is ______ 
  • 1:00:05 – How it relates to BOTH Economic Theory & Human Behaviour!  
  • 1:06:10 – Why you should expect to feel uncertain (Ask your family THIS question…)  
  • 1:08:37 – Reason 2: The War Chest is Getting ____  
  • 1:11:14 – Reason 3: The ____in the Desert 
  • 1:13:38 – In summary: How can Buyers Agent’s help today?   

And… 

 

RBA Cash Rate August 2022: Inching Closer to a Neutral Cash Rate!

By in Podcast, RBA Announcement

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As we welcome in a new financial year, we welcome another not-so-surprising change…

The Reserve Bank of Australia has once again lifted the cash rate by 50 basis points, bringing the official rate to 1.85%. This marks the most aggressive rate rise in a 3-month period since 1994 (If you’re wondering,  back then the RBA lifted the cash rate by 200 basis points)

Tune in as Ben breaks down what this hike means in the big picture and unpack these key themes:  

  • Is the world’s biggest economy in a recession already?  
  • The manufactured economic slowdown is now in full swing with another rate rise this month 
  • Unemployment surprises in the upside beating all forecasts for July 

 

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

👉 The good and the bad: US Property Market slowdown & the raw material rebound

👉 Unpacking 2 key US data reports: Consumer Price & Core inflation   

👉 China’s largest COVID outbreak since 2020 – How is their economic recovery looking? 

👉 The European Central Bank’s first cash rate hike in 11 years  

👉 Unlocking the mindset of the Australian consumer – are we in crisis mode? 

👉 Retail Sales & Inflation: The Biggest Predictor of Slowing Rates  

👉 Property Price Slump: Should you be worried? 

👉  CoreLogic’s Home Value Index – 1 August 2022 

And 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?!

 

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

 

 

 

 

 

 

401 | How Old is Too Old?! Refinancing, Retiring Debt & Starting Later in Life

By in Podcast, Q&A

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We recently hosted our first webinar in nearly 2 years and — WOW what a time! With nearly 1.4K attendees, we shared tons of investing gold and received so many fantastic questions that we couldn’t NOT turn them into a Q&A session today 😉

That’s why today we’re answering one of the most common Qs we received:

 

“How old is TOO old to start investing?!?”  

 

Like…how do Offset, Interest-Only & Principal Interest Only accounts work (in practical terms) to help you retire your debt? What are the fundamentals of Amortisation (we promise it’s not as scary as it sounds) and when are you too old to refinance a loan??  

We’re answering how you can use all of this to best position yourself for retirement, plus…

For single parents, Ben provides his #1 piece of advice to for building wealth into your retirement and we dive into diversification and buying the same suburb.  

So much to unpack, digest, and replay time and time again. Start streaming now for some evergreen content folks!!  

 

Questions We Answer…

Q1) Vaughan Nicholson on A question regarding retiring debt: 

I understand how filling up your offset account for your PPOR saves you a lot of interest and once offset is full you are only paying principal. 

The plan is then to increase money in offset account linked to investment property (IO loan) – I get that when that offset account is full then you are paying no interest on the loan. 

But what does that actually mean practically for an IO loan? Wouldn’t the bank still require the minimum repayment per month, irrespective of how much is in offset? Once you’ve filled your offsets, do you ever actually pay off the loan? Do you then switch to P&I as you’d be paying no interest? 

Thanks 

Q2) Stewart Cameron on Oldest age to reset to a 30 year loan 

[I’m] interested to know what the oldest age is that you can re finance to a 30-year loan? Assuming there is an age you hit where you can’t physically pay back the remaining debt…
If you’re in your 40’s will they still extend it out that long? 

Q3) Linoy John on Buying two properties in the same suburb 

Hi Bryce,
This question is for you as you were from Leeming. I have 2 properties in Willetton – 1PPOR & 1IP. Have I made a bad choice in purchasing a second time in the same suburb?
 

Q4) Stephen Moore on Investing for Single Parents 

At 47, renting and an income of 120000. Is it possible to be in the game to create wealth for a retirement? I don’t own a principal place but have savings of 180k.
Cheers, single dad 

 Some Listener Encouragement  

Hi Ben and Bryce.
My name is Arron, I was the one who purchased a Brunswick apartment in 2014, and contacted you with questions, then my story became Property Couch’s very first case study, in Episode 15!

I thank you both for the wisdom that you teach. 8 years on, I am still your regular listener, and I am still holding on that Brunswick apartment for cash flow. Although I have added one more townhouse into my portfolio 5 years ago.

 

Free Stuff Mentioned… 

 

Here’s some of the gold we cover… 

  • 0:00 – A snapshot of this week’s episode  
  • 1:58- If you’re new here, listen to this!!!  
  • 4:12 – How can you make your life matter? (Bryce’s Epiphany!)  
  • 9:34 – Q1) A question regarding retiring debt 
  • 10:26 – Amortisation: Let’s Break Down This Scary Word  
  • 13:30 – So, how often is interest calculated???  
  • 14:41 – Simple vs. Compounding Interest: How you can pay off your loan quicker!  
  • 16:30 – A Practical Guide to Offsets, Interest-Only & Principal Interest Only! 
  • 18:30 – When you would or wouldn’t use your offset to pay off your loan… 
  • 20:50 – Let’s Summarise!  
  • 21:54 – How can you place yourself in the best position for retirement?  
  • 23:59 – The Backstory to Q2 (Paying more interest…could actually be a good thing?!?)  
  • 26:59 – Q2) Oldest age to reset to a 30-year loan 
  • 27:23 – THIS is when you should be worried!! 
  • 28:04 – How lenders typically analyse older refinancing loans…  
  • 29:47 – Use this 1 thing to manage this minefield folks!
  • 31:10 – Our Answer: How old is too old to start investing??  
  • 32:26 – Q3) Buying two properties in the same suburb 
  • 33:04 – Let’s assess her Asset Selection 
  • 34:07 – How can you work in Diversification??  
  • 35:51 – Has she made a bad choice by buying in the same suburb?  
  • 36:53 – Refresher Class: The Fundamentals of Asset Selection!  
  • 38:59 – Q4) Investing for Single Parents 
  • 40:09 – Ben’s #1 Recommendation 
  • 43:37 – Why it’s so important to seek professional advice!  
  • 44:50 – Listener Encouragement: Arron – from our very first Case Study – is back!  

And… 

  • 45:45 – Why do we promote buying established properties? (This is a REAL message we received) 
  • 49:50 – Anxious about rising interest rates? Tune in here for a deep dive into the 2021 Census Data to allay those fears!  
  • 56:05 – Folks, remember these are actually amazing times for investors!!  
  • 57:14 – Mortgage Jail: Why is it happening?
  • 59:18 – Our Key Message for investing in today’s environment!  

 

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