Q&A Archives - Page 23 of 25 - The Property Couch

054 | Q&A – Entry into the property investment market, debt reduction and investing in house and land packages

By The Property Couch March 10, 2016 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

It’s Q&A time! This week on The Property Couch, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

Entry into the property investment market question from Aaron: Hi guys! could you possibly talk about entry into the property investment market? Specifically how much money you need? I have some money sitting in a term deposit but I have heard that you need more like $40,000 before you can even look at starting out. If that’s true, then I need to keep saving. But I keep thinking to myself “what if its better to start investing that money into cheaper property so that you can start investing sooner rather than later”. How much money should people have before starting?

Debt reduction questions from Marty: I have just finished the new book and found the content informative and practical. I do however find myself grasping for answers about debt pay down in the practical section. How does the graph move to a zero debt position on IOnly loans? I would like some more detail on this area as it’s probably the missing link for me in the whole process. In case study three a couple with surplus annual income of 36k Pays 1,000,000 in principle in 10 years with IO loans. The property selections are not high yielding so I’d expect the cash flow to be only just positive even at year 15. Am I missing something?

Debt reduction questions from Mitch: Hey guys. Love your podcasts and your book. Just a quick question about paying down debt to start receiving passive income. In your book you say to set up all loans to interest only, if I want to retire off passive income at the age of 40 how do I pay down debt without selling any properties and without access to my superannuation?

House and land packages question from Rob: Hi Guys, love the podcast – I’m an avid listener and after finding you, went back to Ep 1 and went through them all. I’m just about to place an order on the book… Fundamental Question: Is a house and land package always a bad investment, or are there situations it can work as an investment property?

If you like this Q&A episode (Entry into the property investment market, debt reduction and investing in house and land packages), don’t forget to rate us at 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/

050 | Q&A – Credit card management, professional fees, LOC for negative cash flows, adding value via reno and interest only loans

By The Property Couch February 11, 2016 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

Only a couple more weeks left to our Summer Series. This week, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

Credit card management question from Peter on Facebook: Loved reading the book. Quick question, in your Money Smarts section (Chapter 3 of the book) you discuss using your credit card for fixed expenditure. Does that include groceries…assuming groceries doesn’t come under lifestyle? That seems to provide a variable – do you think that is still best? I want to adopt your setup but worry about using a credit card, considering we don’t have one currently. Thoughts?

Professional Fees questions from Andrew : Hey guys, thanks for all the valuable information so far. I have a question in regard to the fees and cost of the property portfolio and buyers agent services. I am a first time investor with limited funds for my purchase, and I am trying to get an idea whether or not I could
- a) even afford the above services and
- b) whether those funds would be better spent contributing to a larger deposit? Can buyers with smaller budgets (sub $400k) still maximise capital growth and rental yield using qualified property advisers and investment savvy buyers agents? Cheers.

Question on line of credit from Christian: Hi Ben, what are your thoughts on using equity and/or a line of credit to fund the negative cash flow on high growth properties?
I know that some other high profile companies are advocates of this strategy. Your thoughts? Would love to hear your thoughts in podcast.

Value add question from Heath: Hi guys, love the show and I am currently up to the Buyer’s decision quadrant in the book and really enjoying it. My question to you is:
I have a recently renovated investment property in Brisbane that is a 3x2x2. We have built in a 4th bedroom downstairs in the existing utility room (legal height, ventilation, windows and power supply etc.) Currently I am speaking to a few building certifiers and engineers etc. to assess whether or not I can get the 4th bedroom certified through council. It’s looking like the certification will cost me around 5k and the difference between the median for 3 & 4 bedrooms in the area is around 60K. Would you think moving forward with this would be feasible? And if so when issued the certificate through the Brisbane council is this something that I would submit to the valuator when they would be doing the inspection?

Repayment question from Joe: I actually just finished reading your book about 30 min ago and I have to say I really enjoyed it. In particular chapter 9 and 10 (investment strategies and the case studies). I found it very easy to follow and understand though I do admit I learn a lot of the terms and phrases from the podcasts. I do have a couple of questions though.
- I noticed that in the case studies the loans were always interest only which is fine and I understand why it’s like that, but is it possible to have Interest only repayments over the course of the entire loan? Surely at some point the bank wants principal paid back.
- This leads me to my second question, during your case studies do you factor in the fees of your service as this would have a noticeable impact on the overall purchasing power of the buyer?

If you like this Q&A episode (Credit card management, professional fees, LOC for negative cash flows, adding value via renovation and interest only loans), don’t forget to rate us at 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/

49 | Possibility of an out-of-cycle rate rise and media commentaries on the Property Market

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

Subscribe On Itunes Subscribe On Android

The Governor and Reserve Bank has decided to keep interest on hold at 2% in the cash rate announcement this month. But will there be another out-of-cycle rate rise by the lenders? We’ve seen it last year where interest rates on residential loans were raised but what are the chances that it’ll happen again this year? Bryce and Ben talks about this in today’s episode. They will also be talking about the recent hype in media commentaries regarding the Australian Property Market.

Not to forget our promise for the Summer Series, these are the Q&As for today’s podcast:

Loan question from Ben on Facebook: Read a book that outlined the kitty loan system. I was wondering what Ben and Bryce’s opinion on using this system was and whether it truly works or not. The book indicated to let the amount accrue over a period of time, but I’m not sure what bank and what type of loan allows you to do this?
Expat investment question from Glenn: I am an Aussie expat living in Dubai and looking to invest back home. I have been told to look at property investments that provide a loss for tax purposes so I can benefit when I return. Any information on how I can invest or what would benefit me from overseas would be interesting to hear about. Is the tax benefits the most important issue for me or should I just be looking for growth that will then outweigh any taxes I have to pay. I hope that makes sense. I have enjoyed your podcasts thus far and have now purchased your book.

RBA has kept the interest rates on hold this month but what are the chances for an out-of-cycle rate rise from the lenders?

If you like this podcast: “Possibility of an out-of-cycle rate rise and media commentaries on the Property Market”, don’t forget to rate us at our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

046 | Q&A – Things we would have done differently, Buying sight unseen, Tax and purpose of property, Investment grade in regional centres and Joint ventures

By The Property Couch January 14, 2016 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

We are back on with the Questions and Answer time for our Summer Series. This week, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

Question from Alex: Aside from getting into property earlier or not selling… knowing what you know now, what 5 things would you both have done differently?

Buying sight unseen questions from Lewis : We are currently living overseas and want to want to move back to Australia in a number of years. Late 20s and want to start buying investment properties in 2016, we have two questions.
1. Best advice for buying property without being able to walk through the property.
2. Best area to buy in Australia if you don’t know where in Oz you want to move back too!

Question on tax implications on property from Chris : A question relating to turning an investment property into a PPR. My partner and I just completed construction of a home which was intended to be an investment property for 5-7 years after which time we were going to move in and make our family home. Situations have changed and we will be able to completely pay off and move into the new house within the next 12 months. Will there be any issues arising from all the tax deductions (ie interest during the build, deprecation etc) Since we will be changing the purpose of the house?

Investment grade for regional properties question from Lou: Loving the podcasts – succinct and very informative so thank you! I’m currently saving for my first investment property and I have a couple of questions. I am considering regional Victoria (as I grew up there) and was wondering how ‘Investment Grade‘ the properties are, particularly along the Vic/NSW border. Should I be looking here or become more ‘borderless’ in my approach? I am looking to purchase in 2016 however I’m concerned with the property cycle, should I hold off another year until the market drops or is it likely to only increase in the short/medium term? I understand you can only give general advice, but I would like to know what the generally suspected trends are.

Joint venture question from Christopher: I am a first time investor and am looking at buying an older federation era home. For a 3 bedroom home of this style you are looking at a purchase price of around the $550,000 mark. Due to an over inflation of new homes, I can see these are the only worthwhile investments for the future as they have generally around the 1000 sq m block at less than a km from the CBD and are rising in value at around 2-3% per year depending on what renovations are performed where they can be anywhere up to 10%. To find these funds I am looking at doing a joint venture with a good mate of mine who is a builder, do the minor renovations without overcapitalising, hold it for maybe 5 years rented out for that period and then sell it for hopefully a decent capital gain. Are joint ventures worth it and will this be a silly strategy for such an old house as depreciation will have been used up already and these older houses can be a pandora’s box once opened up and end up costing way over budget?

Free resources mentioned in this podcast:

Episode 29: Common mistakes when investing in property

If you like this Q&A episode, don’t forget to rate us at 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/

044 | Q&A – Building cash reserve, Next-door suburbs, Property professionals, Offset accounts, Buying at a premium, How to be a BA & Renovating for Profit

By The Property Couch December 31, 2015 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

For the last episode of 2015 and as promised for our Summer Series, we will be going through quite a few questions! Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. It’s going to a full on one so sit tight! 🙂 :

Building cash reserve question from Maria : Can you please discuss how to build cash reserve buffers into your property investment plan, and the options for funding unexpected large expenses like medical expenses and family needing financial assistance.

Investing on the suburb next-door questions from Peter : Is investing in a lower priced residential suburb surrounded by higher value median suburbs a good investment strategy? With hope that property you’ve invested in will eventually go up in price? Granted that suburb also has all the necessary amenities close by such as public transport, schools, small shops etc.

Property professionals question from Josie : I have been listening to your podcasts which I find really interesting and informative. I am really interested in buying an investment property and am currently looking at the best way for me to do this. I am currently talking with my finance adviser and accountant to establish the best way to do this, ie, through a self managed super fund or using my own home which I own as capital. As you mentioned in your pod cast, are these the right people to get property advice from. Would appreciate your thoughts

Loan structure question from Mark: Love the podcast and have been a loyal listener since the first few episodes. My partner and I have recently purchased our first new home and are considering putting our loan repayments to interest only and banking the money we would be paying off the principal in an offset account. We want to get an investment property and start building a portfolio and see this as a way of saving money quickly. What do you guys think?
Investment strategy question from Rick: Over the years, I have been advised to buy in quality, blue chip and desirable areas with a proven growth history which aligns to Empower Wealth’s strategy. The downside is that it is priced at a premium and the cash flow is usually poor which hampers an investor’s ability to build their asset base until the rental income improves.
Becoming a Buyers Agent question from Daniel: What does one need to do, to become a buyers agent? What schooling/qualifications are needed to become one?
Renovating for profit question from Sylwia: Hi there, I am looking to get into renovating for profit in the nearest future. I am at the stage of educating myself and would love to hear from you Gents about renovating for profit as an investment strategy: renovating to rent vs renovating to sell, buying the right property at the right price, good sources of information, dangers and traps of renovating as a strategy, property “flipping” e.t.c. I look forward to hearing you point of view on this topic.

Free resources mentioned in this podcast:

Episode 17: Who’s your personal banker?
Episode 23: Exit Strategy in Property Investment
Episode 33: Q&A – Investing with Equity, First Home Buyers Tips, Buy-Reconstruct-Sell Strategy and Leasing to Relatives

Instagram

Free Resources

Footer

MONEY SMARTS SYSTEM