Q&A Archives - Page 21 of 25 - The Property Couch

078 | Ten Biggest Risks when Investing in Property in Australia

By The Property Couch August 25, 2016 in Podcast, Q&A

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Investing in property is considered as a relatively safe investment class but as with other types of investments, there are some downfalls that you need to be aware of. So in this week’s podcast, Bryce Holdaway and Ben Kingsley will be sharing their ten biggest property investment risks.

They will be unpacking this list from a macro point of view such as factors that are beyond an investor’s control down to a micro level. Bryce and Ben will also be discussing some risk mitigation strategy that investors can apply when building their property portfolio.

The first macro risk is General Market and Economic Risks. Although each one of us contributes to the country’s performance as a whole, individually, we still can’t influence it much (unless of course, you are a multi-billionaire). So, if a country is performing poorly for example, during the GFC period, some property market would be affected, and this would impose some degree of risk if you are a property investor. Economic activities in a state level also could be a risk because this affects employment rate in the area and hence, your potential tenants as well the value of the investment property.

Listen to the podcast to find out the other 9 property investment risks.

Some of the resources mentioned in this podcast:

Webinar Replay with Jane Slack-Smith and Peter Koulizos – Register here
Facebook Live Chat (September 13) – Join here
Vote for us for the Reader’s Choice Award – Vote here
Episode 5 – Asset selection – Listen here
Episode 31 – Checklist to getting a great property manager – Listen here
Episode 53 – The Money SMARTS System – Listen here

077 | Right Strategy in the Right Market at the Right Time

By The Property Couch August 18, 2016 in Podcast, Q&A

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What is the possibility of investing in property with the right strategy, in the right market, at the right time? Well, that depends. Now, we know this sounds really vague but in order to determine that, one need to ask if they have the right understanding in the first place? Because it is very dangerous if the perception of a right strategy or a right market is wrong and you go ahead and build a property portfolio based on your assumptions. For example, if Alex believes that capital growth is the right strategy and buying within 5km radius from Melbourne CBD is the right market, then he would be in a very tricky situation because the supply at the moment is quite low (unless he has a very deep pocket).

So in this episode of The Property Couch podcast, Bryce Holdaway and Ben Kingsley focuses on understanding what is considered as “the right market” and why it is important that you take the long view on where the market is going before committing to anything. Bryce and Ben will also be answering Maria’s question on cash flow management and an investor’s mindset. Here’s the question:

“Hi guys

Love the podcast and the book, well-deserved success with both.

How do you draw the line between good cash flow management and depriving yourself of things you enjoy? My husband and I have always lived within our means and we now have two properties under our belt in Sydney, with plans to buy more. We’re in our thirties. But I’ve found that as we’ve come along the investing journey I’ve become increasingly preoccupied with spending less. I have no issues buying necessities, paying bills, or paying for things that benefit our investing or our health. I don’t blink an eye at spending on insurances, BA fees, etc, because those things are useful and necessary.

However, when contemplating discretionary lifestyle purchases, often costing less than $100 (you know, stuff you don’t need, but want) I spend weeks analysing whether to buy, to the extent that I’m spending too much energy on it. I guess I worry that if I spend $100 here and $100 there, I’ll just eat away at our cash buffers. What are your personal real life experiences with discretionary spending while trying to build a property portfolio? Did you and your family buy your toys and vices freely, or did you find yourself analysing every purchase?

I want to have the best cash flow position possible, but I want to have occasional frivolous luxuries too. I know I need some sort of mindset shift, but what does that shift look like?”

Some of the resources mentioned in this podcast:

Webinar with Jane Slack-Smith and Peter Koulizos – Register here
Game of Property Investing – Find out more here
Facebook Live Chat (September 13) – Join here
Property Investor Sentiment Survey by PIPA – Find out more here
Episode 53 – The Money SMARTS System – Listen here

PS: And we’ve just achieved half a million downloads on the podcast! Thank you so much for all of your support and feedback. We will continue to provide good quality contents, ‘unpack’ more frameworks and case studies and answer your questions on all things property. If you are wondering what are the boys doing in this picture, this is what happens when Bryce Holdaway and Ben Kingsley heard that we’ve got half a million downloads on the podcast!

075| Q&A – RBA Rate Cut, Planning for Reduction in Income and Bidding Tactics at Auction

By The Property Couch August 4, 2016 in Podcast, Q&A

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This week on The Property Couch Podcast, we are going through some of our listeners’ questions. But before that, Bryce and Ben will be discussing the 25 basis point cut passed on by the Reserve Bank of Australia early this week. How will this impact the Australian Economy, how much have the banks passed on and will there be any flow-on effect on the Australian household?

Here are the questions for today’s podcast:

Question on planning for a reduction in income from Matt: How do you plan for a reduction in income when you are still a reasonable distance from retirement and would it be wiser to maintain current income for long term potential or is there a process that could be applied?

Question on bidding tactics at auction from Adam: I was hoping in your next Q&A perhaps Bryce might be able to address the topic of bidding tactics at auction. Most of the tips and strategies you read amongst the property press propaganda are ridiculous things like dress in a suit and pull up in a sports car out the front. In your experience is there any value in these sorts of image approaches? or concepts such as ‘knockout bids’ and bidding late, or are auctions pre-determined events going to whoever was always going to pay the most. I know you will say the gold standard is to employ a buyers agent but I’d be interested in your tips for someone keen to DIY.

Some of the resources mentioned in this podcast:

Episode 53 | The Money SMARTS System – Listen here
Auction Tips video series – Watch here

If you like this Q&A episode (RBA Rate Cut, Planning for Reduction in Income and Bidding Tactics at Auction), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Live Questions and Answer Chat on Property Investing – June 2016

By The Property Couch July 7, 2016 in Free Resources, Q&A, Videos

The Property Couch podcast is all about helping others avoid making bad property investment mistakes and sharing the insiders guide to property investing. That is why on the 29th of June 2016, Bryce and Ben decides to hold a Live Questions and Answers Chat on Property Investing so that we can interact directly with our fellow listeners. Thank you to all of you who have joined in and if you would like to watch a replay of this, here’s a recording on Youtube:

List of questions Answered:

Will Sederino: My question is about claiming depreciation on an existing property that has been renovated. We are about to purchase a property (using Empower Wealth’s Buyer Agents) that has recently been renovated by the previous owner and wonder whether we can claim depreciation on this renovation even though it was not us that completed it. My gut feel is that we would be able to? Is this correct?
Mitch Scholard: G’day fellas, wondering your thoughts on which capital city will see the best capital growth over the next 5 years.
Luke Stirton: Does development and renovation provide the secret to accelerated gains in today’s increasingly harder market to get ahead?
Angela Cerasi: Hi guys, I am new to property investing and am currently in my research phase. Have listened to all your podcasts and enjoyed them immensely! I have 2 questions. (1) If a potential investment property is to have owner occupier appeal, then won’t you be competing with owner/occupiers when it comes to buying? From what I understand this means you could be competing with emotional buyers who could push the price up. I don’t think renovating is for me, so I would be buying a place that would be pretty much ready to be lived in by tenants. I of course want to find an area which is gentrifying, but wouldn’t owner/occupiers who are looking for a great buy also be looking for this too? (2) If a buyers agent takes a fixed fee, how much time would they generally dedicate to finding your property? Do you come to them with the city/suburb in mind or do they come to you with those details based on your personal situation? Do they keep looking for you until a property is successfully purchased? I appreciate that all buyer’s agents would differ but maybe you can give me an idea of how it works?”
Maria Li: Can you do a PAYG withholding variation the first year that you own investment property (based on projected cash flows) or do you have to wait a year so that you can base future withholding variations on the previous year?
Leisa Caines: Hi Bryce & Ben, love the podcast & your book. Hear you talk about finding an investment savvy mortgage broker but where do you find one? I’m in North west area in Sydney
Brad McCreadie: Would you buy now or wait to see what happens to apartment prices in Briz. Looking at a 2 bedroom as owner occupy initially but then to use as investment.
Karl Frank: Hi Guys. What will be the impact to the housing market if Labour win the next election and implement their changes to the Capital Gains Tax as it relates to investment properties?
Mark Rogal: If Labour win the election, negative gearing and CGT changes won’t kick in until mid-2017. In your opinion, what is the most likely scenario for prices of established homes between now and July 2017? Thanks for the great insights! Cheers!
George Kallinikos: I was wondering what is a suitable time frame is to wait it out during a period of experiencing little to no growth. I have owned a one bedroom apartment in a Melbourne blue chip location of Hawthorn since 2008 and it has barely kept up with inflation. This has left me disillusioned during a period where Melbourne overall has seen incredible growth. I understand exit / repurchase costs but also realise that the opportunity cost of this investment has been quite high. What are your thoughts?
Bradden Mitchell: GDay Bryce & Ben. Does an investment grade property have to be over $500K ?
Jack Killalea: If there is a significant price correction in the CBD apartment market over the next 2-3 years, will these apartments become potentially good investments or because they lack scarcity they will always be fundamentally not investment grade?
Geoff Smith: Hey guys just a quick question, how does it work with using parents equity from their homes. How does the loan get structured or would it be used as a line of credit against there property?
Graeme Ash: Hello Couchers, Great Show 🙂 Quick question – with banks only lending 60% for loans, do you think it is better to go for the biggest, blue chip, investment grade, growth asset you can afford using all your super or go for a cheaper property so your 40% does wipe you out and you can start saving for property 2.
Felix Tjandrawibawa: What’s the best way to estimate capital growth for a suburb? Are you guys looking at historical growth (if so – how long do you guys look for?)?
Rachel Hubbard: Hey guys. I’m now in a position to buy my next investment property. However my financial goal is to pay off my ppor in the next 5-10 years. Given that property investment is a long term strategy, do you suggest buying another investment property in an attempt to gain equity and sell in 5-10 years to pay off my ppor? Or given the high costs involved in buying/selling, should I look to invest in other ways to achieve this goal?
Alex Hill: Are all house and land packages dud investments? In 2013 I bought land in North Lakes QLD and built a lowest house. I spent about $50K over median price for the area, trying to maintain some owner-occupier resale appeal. It’s currently cash flow neutral but I’m concerned there will never be any growth, and I’ll now struggle to accumulate a deposit for a second investment property. What are your thoughts?
Amy Hambin: When building an investment property is yield calculated on land and construction costs or the first valuation on completion?
Daniel Stocks: Hi guys, do you often come across clients who’s properties come in at less than purchase price when applying for finance?
Sam Hockey: Hey guys, am I better off looking at an investment property towards the upper end of my lending capacity ($800k) to get into the better areas of Brisbane or looking further out for something around $400k to setup my next investment property purchase sooner? Love the podcast I’ve just finished it for the 2nd time around!!
Richard Bristoe: Hi Bryce and Ben, I just want to ask what are your thoughts on Brexit, and how it will affect the Australian property market in the short and long term?
Mitch Scholard: Would love your thoughts on the Sunshine Coast, I feel like it has great owner occupier appeal but not sure it has the income to keep property prices increasing.
Daniel Stocks: If looking for properties interstate in unfamiliar areas, what advice can you give for narrowing down investment grade suburbs?
Tammy Nguyen: What are your thoughts on the Logan area in Brisbane?
Sam Hockey: How much does a Buyers Agent cost?
Gaz Slater: How long do you wait for a city that’s nearing the bottom of its cycle before buying. Eg Perth.

070 | Q&A – Buying a property with another person, security guarantee and rentvesting in Gold Coast

By The Property Couch June 30, 2016 in Podcast, Q&A

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Back to back Questions and Answers episode! We’ve had a great time yesterday on our Facebook Live and hence we thought we should answer some of our other listeners’ questions. This week, Bryce and Ben looks at the questions below. Thanks again for submitting your questions!:

Question on entering the property market from Glenn: I have 2 daughters in their early 20’s. What advice can you give them on the best way to enter the property market? Thanks

Question on buying a property with another person from Stevie: I am interesting in the issues associated with buying property with another person. For example, I currently own two houses (bought years ago) with my brother as investments and I now want to buy another within to live in (as I can’t get a loan with just my salary and want to use the equity in the houses in lieu of deposit). This will then restrict my brother’s borrowing capacity to buy a property to live in if he wants to do so in a year or so, and we are at a bit of a (friendly) stalemate with what to do about it – buy another or not.

Question on Buying a property with another person from Michael: Hey guys – just wanted to say I’m loving the podcast. Found it about a week ago, have listened to hours of content in a short amount of time. Such a great resource. Has been good to hear that a lot of my ideas and research is being validated in what you’re saying, but has also given me some other things to think about. I’m about to buy my first property in partnership with my cousin, am making an offer today on a great find that’s too good to pass up. 15km north west of the Melbourne CBD. $150k under median price in the area. Quick sale needed as the vendor needs finance asap. Just wondering, what would be a bad figure in terms of rental yield and annual growth? And then I guess what would be the better figures to see? Thanks again for such a great learning tool.

Question on rentvesting from Samuel: I am very open to the idea of Rentvesting, however I am torn between Rentvesting or purchasing a Principle Place of Residence, of which I would live in for 12 months and then be rent out for 6 years (thus avoiding CGT), plus rent out the other room/s whilst living in the property. I would love to hear both your thoughts on this one given the current market conditions and also the Gold Coast Suns performance this year.

Some of the resources mentioned in this podcast:

Episode 54 | Entry into the property investment market, debt reduction and investing in house and land packages – Listen here
Episode 59 | Rentvesting: What is it and who is it for? – Listen here
Facebook Q&A Replay Video – Watch here

If you like this Q&A episode (Buying a property with another person, security guarantee and rentvesting in Gold Coast), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

List of questions Answered:

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