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497 | Why NOT to Invest in Property Until 2036!

 

Seb and Bronnie (Note: Names have been changed for privacy) came to us with plans to invest in property but left with a completely unexpected strategy.  

Our advice: “DON’T invest in property until 2036”?! 😲🏡 

And in our second case study, Adam and Jacinta had a solid investment plan until an unexpected event changed everything.  

Despite Adam’s financial expertise and their three investment properties, he found himself saying, “I can’t work it out like I usually can.” So how did we help them navigate this change, free up cash, and still secure their dream family home?  

In today’s insightful episode, we’re sharing the stories of two real couples grappling with significant life decisions.  

Tune in to learn about the personalised plans we crafted for them, enabling each couple to achieve their dream home and lifestyle with the right strategy and sequencing. 

  

P.S. What’s the common thread in these case studies? The “new-age” misconception of Rentvesting. Listen now to find out if you’ve misunderstood it too! 

 

Free Stuff Mentioned

 

Timestamps

  • 0:00 – Why NOT to Invest in Property Until 2036! 
  • 1:28 – Bryce didn’t watch the game, THIS happened…  
  • 3:58 – Mindset Minute: Your alter ego can change your money story. Here’s how.   
  • 8:12 – Case Study 1: Is Rentvesting Just A Poster Child Strategy?  
  • 11:52 – The Problem: When the job clashes with your dream home!   
  • 13:43 – These folks have a strategic advantage in the property game…  
  • 16:05 – The $1.7M “pennydrop moment” that changed everything  
  • 18:27– The Solution: A Starter home?!  
  • 19:20 – Pure Vs. New-Age Rentvesting  
  • 22:17 – The Counterintuitive Strategy: Don’t buy until 2036!?  
  • 24:00 – Who does the tax system favour most? 
  • 26:43 – The Flow on Effect: 50% LVR on their dream home  
  • 28:40 – Why a Property Plan isn’t just about investment properties!  
  • 34:10 – Their Timeline & Outcome: $2,300 weekly in retirement  
  • 35:45 –  Internal Transformation: “They high-fived Amanda through the screen with excitement”   
  • 41:14 – Are we pro-rentvesting?  
  • 45:10 – Case Study 2: The Plan Curveball  
  • 46:22 – The Problem: “We need a plan we can stick to, but I can’t work it out like I usually can.”  
  • 51:17 – The borrowing capacity surprise  
  • 53:38 – Focus on the simple strategy!  
  • 54:22 – What’s the plan? Family homes, freeing up cash and investing later  
  • 56:28 – The Achievement: “Passive without the pressure”  

And…

  • 58:19 – Lifehack: Going through a tough time? Diary notes it for 30 days’ time.  
  • 1:00:38 – WMPN: CoreLogic’s May Results: Where are house prices across Australia?  

 

496 | Don’t Sell the Goose That Lays the Golden Egg

 

In Episode 496, we’re back with a jam-packed Q&A Day!

Discover everything you need to know before investing in Victoria, from understanding the state’s “blowout budgets” to navigating the biggest risks that make buying in Melbourne a “2030 conversation.”

We also break down why the buy-and-hold strategy still works, even for single investors with lower incomes. (After all, would you sell the goose that lays the golden egg?)

Plus, learn why housing shouldn’t be linked to income and hear real data from a listener on his journey to a $1M passive income.

Tune in now for a jam-packed episode! 🚀 🚀

 

Free Stuff Mentioned

 

 

Questions We Answer:

Q1) Advice on Purchasing in Victora from Georgia  

Hi Ben and Bryce, my name is Georgia.

I want to say thanks very much for your work on the podcast. I really enjoy listening to it and find a very educational.

My husband and I currently live on the Gold Coast. We have been living in our principal place of residence, which is a house we bought about a year and ½ ago.

We also own an investment property on the Gold Coast, which we bought in 2018 and it was originally our principal place of residence but since we moved to our house, we now have that as an investment property.

We had really good returns from both properties over the last few years so we’re looking at releasing some equity from investment unit and then purchasing another property potentially in Melbourne.

Seems like Melbourne properties are in high demand at the moment. I’ve heard your advice on buying in Melbourne or Sydney if you possibly can so I think it would be along a good long-term investment and potential growth would be positive.

Possibly looking at the western suburbs because I say I’m a bit more affordable and I think that’ll be a popular area going forward. I know Victoria’s had some changes to tenancy laws so I was wondering what we should be aware of if we’re thinking of purchasing in Victoria?

I know there’s a lot of extra costs and compliance requirements so what would be your advice and recommendations of things to be aware of if we were looking at purchasing the property in Victoria for investment purposes?

Thanks again for your work. Keep doing what you’re doing.

Q2) Selling Options from Justin

Maybe start to talk more about the option of selling. Your podcast seems to advocate for a buy & hold, retire debt strategy.

Every podcast talks about buying a property, then cash out equity when the property grows in value to go again; however, this is not always achievable when someone has reached their serviceability cap.

As such, I think the option of selling to access equity to redeploy into another investment should also be talked about as a valid option to grow wealth.

You always mention that most investor stop at one or two investment properties, but I think this is more due to restricted lending to an individual more so than ones’ willingness to achieve more.

As a general lay person, I know enough to be dangerous but I can’t see how someone on a median income of 67k that own their own PPOR with half a mil to a mil mortgage would be able to service enough debt to afford more than 1 or 2 investment properties.

Q3) Buying a property to Assist in Purchasing Dream Home from Ruva

Hey Ben and Bryce love the podcast. You guys rock. My question is around rent-vesting. Apologies if this is already been answered or rather basic, but I’m struggling to connect the dots and understand the end game of this strategy in real terms.

How can buying a property or properties at lower value points and in areas of lower demand in bulk assist purchasing your dream home outright mortgage free and a blue chip suburb in 10 to 15 years time as I hear a lot on Youtube.

If values continue to rise across the country with a ripple effect from major centres outwards, won’t blue chip location simply remain at a map much higher value to those cheap and cheerful investments in mount random? May you please outline how this works in practice?

Are rent-vestors assuming that investing elsewhere will outperform their dream locations to then a mass enough equity to buy a dream home outright in the future? What does this actually look like?

Thank you so much.You guys are amazing. Love the podcast. We tune in and you bring so much value to the community. We appreciate it. Thank you

Listener Comment: Real life data you may find useful from Dean

Hi guys, I am 43 and have been investing in property for over 20 years now, my strategy has been to buy & hold, some of the properties I have owned have been cosmetically renovated and others structurally renovated over the years, my properties are located in Melb, Sydney, Brisbane & a couple in USA.

I currently own 12 properties. I work full time in a banking role and recently have other business interests outside of property.

I have run my property investment portfolio as a business over this time, and on a monthly basis i maintain a spreadsheet where I update my assets, liabilities & cash flow position.

The data is a real life example of the buy & hold strategy and could be of interest to you & your listeners.

Basically it shows the slow burn of building the first million net (17 years), however then jumps rapidly as the exposure to the market grows and the property market does the heavy lifting; $1m – $2m (10 months), $2m – $3m (27 months), $3m – $4m (38 months), $4m – $5m (9 months).

I’m not looking to be interviewed or my full name used, however thought this data might be useful as a real-life example of what you consistently talk to.

Regards,
Dean

 

Timestamps

  • 0:00 – Don’t Sell the Goose That Lays the Golden Egg 
  • 1:29 – Collingwood’s cooked it? 😉  
  • 3:57 – PICA Webinar Replay! 
  • 5:05 – Mindset Minute: “If you don’t change the direction you’re going, you’ll wind up where you’re headed!” 
  • 5:49 Q1) Advice on Purchasing in Victora from Georgia   
  • 8:02 – What to know before you invest in VIC  
  • 9:20 – The Greatest Risks to Investors  
  • 11:10 – Why does Melbourne look better in the long-term?  
  • 15:33 – Why buying in Victoria should be a “2030 conversation”  
  • 16:40 – Record level of debts & blow out budgets 
  • 19:28 – Will incentives for investors come back? 
  • 21:19 – Q2) Selling Options from Justin   
  • 22:37 – Folks, 60-80% return in months is NOT the norm!  
  • 28:30 – The BIG shift from passive to active investing  
  • 30:13 – “What if I don’t have 30 years left to invest?”  
  • 32:47 – Why sell the goose that lays the golden egg?  
  • 33:50 – You don’t have to be debt-free at retirement. Here’s why. 
  • 39:14 – Q3) Buying a property to Assist in Purchasing Dream Home from Ruva   
  • 40:51 – Why housing shouldn’t be linked to incomes 
  • 43:19 – What is modern Rentvesting?  
  • 45:02 – This is when property becomes a game of probability  
  • 46:26 – Blue Chip suburbs & long-term commitments  
  • 51:56 – Listener Comment: Real-life data from Dean   

And… 

  • 55:41 – Lifehack: Apple name drop in a flash ⚡ 
  • 56:58 – WMPN: 144 days for building approvals?!  
  • 59:47 – We’ve got an amazing guest incoming… 

 

494 | “The Table of Truth”: Everything You Need to Know About Property & The Budget

 

Folks, the 2024-25 Federal Budget has just dropped, so what does it mean for property investors and the broader economy?   

In this exciting episode, we’re unpacking everything you need to know about the new budget and bringing in a leading financial market expert to help.   

Returning to the couch is Evan Lucas economist, Moorr ambassador and author of the best-selling book Mind Over Money. Basically, we’ve brought in the big guns to tackle:    

💰 Is this budget economically or politically driven?
🏆 Who were the winners & losers?
💸 The drastic spending decisions made by the government (and the resulting deficit)
📈 The secondary inflation wave on the horizon
❓ The #1 big surprise missing from this budget
🏠 Why we will NOT reach the goal of 1.2M new dwellings
 🔄 What would it take to see positive political reforms?   

As Evan says, “Subsidies are not a magic bullet through fixed inflation.”   

To understand this year’s budget and what it means for you, tune in now folks 😊   

   

Free Stuff Mentioned

 

Timestamps

  • 0:00 – “The Table of Truth”: Everything You Need to Know About Property & The Budget 
  • 3:26 – Mindset Minute: “Our Well-Being Lies in Our Actions” 
  • 8:09 – We’ve brought in the big guns: Evan Lucas!  
  • 10:27 – Is the budget economically or politically driven?  
  • 17:00 – What would it take for positive reform to happen?   
  • 28:38 – The drastic spending decisions made by the Gov 
  • 31:03 – …and the staggering deficit in the coming years  
  • 33:31 – The secondary inflation wave coming  
  • 38:49 – Is this budget likely to backfire with rising interest rates?  
  • 44:12 – The 66% increase in childcare subsidies 
  • 51:51 – The winners & losers of the budget  
  • 1:01:30– The big surprise in this budget 
  • 1:04:48 – The Greens votes and rental pressures  
  • 1:07:52 – Why we are NOT going to reach 1.2M new dwellings  
  • 1:12:57 – The PICA Perspective: Negative Gearing and a proposed model  
  • 1:15:46 – What would we do differently?  
  • 1:20:33 – Bryce’s view on the Budget  

And… 

  • 1:21:56 – Lifehack: The Table of Truth  
  • 1:26:15 – WMPN:  The 2 Qs to ask your Buyers Agent 

493 | $160K Dilemma: Should I Walk Away From Paper Profits?

 

Emma’s partner has a $160K dilemma: He’s been offered a refund on an Off-The-Plan apartment that’s been delayed for two years. Should he take the refund or ride it out for a potentially higher sell price? 🤔 

Kieran faces the decision of investing in smaller units versus two individual homes. Which is the better investment decision for him, and how can he align it with his goal of helping others? 🌍   

And in Simone’s Retirement Plan: How does this single mum and schoolteacher with 5 properties reach a target of $2,000 per week for retirement? How does this stack up in today’s economy? 📈 

Folks, this is a massive Q&A Day where we link age-old questions in today’s nuanced context.  

From diving into the psychology of Loss Aversion to understanding why “C” is the hardest to achieve in our “ABCD” foundational principles, you’ll want to save this episode for future reference.  

Listen now folks! 😊  

 

P.S. Stay tuned till the end to discover how to type…without typing!?  

   

Free Stuff Mentioned

 

Timestamps

  • 0:00 – $160K Dilemma: Should I Walk Away From Paper Profits? 
  • 1:49 – Interest rates, budget release & TPC survey winners  
  • 8:01 – New Tracking Tools in Moorr! 
  • 16:34 – Mindset Minute: Just focus your eyes on the captain…” 
  • 23:38 – Q1) Get Deposit back or Wait for Growth 
  • 27:26 – Learning Experience or Loss Aversion? 😱 
  • 28:02 – How to Avoid Loss Aversion: Step-by-Step  
  • 32:55 – “A bird in hand vs two in the bush” 
  • 36:31 – Why Off-The-Plan means YOU are taking all the risk  
  • 37:12 – This refund is a red flag 🚩 
  • 43:14 – Q2) Small Complex vs 2 Individual Properties 
  • 45:00 – When passive investing stops being passive  
  • 47:37 – To help others, you need to be in THIS position 
  • 49:52 – Why houses over units? 🏘️ 
  • 53:53 – Q3) Archive Question: $2k per week in 20 years’ time 
  • 56:41 – How we calculate the $2,000 a week in retirement  
  • 57:31 – The Power of Compounding, Offset Accounts and Qs to ask 
  • 1:00:07 – Why “C” is the hardest to achieve in our ABCD foundational principles 💰 
  • 1:05:09 – Thank you to all our Question-Askers!  

And… 

  • 1:05:45 – Lifehack: How to type…without typing?! 📱 
  • 1:07:20 – WMPN:  The State of the Housing System 

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