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For starters, they understand what underpins property prices! And not only are we about to dive deep on this in today’s Q& A, we’re also going to tell you exactly why property is a different beast to other economic market’s across the country!
‘Cos here’s the deal folks…
… we got some very, ahh, ‘unedited’ feedback from Ryan about eight weeks ago — which was obviously right in the height of COVID-19 fear. And instead of running away from this stuff, we’re going to tackle it head on. Maybe you might have similar thoughts in the back of your mind too!? So make sure to check it out.
And of course, as AFL supporters, we cannot forget about the Big Freeze!
Although there are a bit of disruptions on the AFL schedule, Big Freeze 6 is still going ahead! Founded in 2014, FightMND was established with the purpose of finding effective treatments and ultimately a cure for Motor Neurone Disease. Here’s the link to the Big Freeze!! Donate here >.
On top of that, we’re also answering a who bunch of listener questions, like…
- How to extend or refinance interest only periods
- Understanding Demographics and Median Income
- Selling Your Current Property To Afford A New (and better) Property
- Recognising variances in data estimates and actual purchase price
- How The Wealth Effect effects the economy
Question from Declan about extending or refinancing interest only periods
G’day Ivise, Ben and Bryce? Declan here, just push through the 300 odd episodes. Read both your books, trialled LocationScore, joined the Facebook group, PICA and set up Money SMARTS in the last seven and a half weeks. I can’t believe how much free content you guys have pushed out. It’s honestly been a sliding doors moment in my young investing career. My question for you is relatively simple: as a 23-year-old with a partner, rentvesting is essentially the only way we can get into an A or B-level grade property where we live. The missing piece from the last 300 episodes, in my point of view, has been discussion around extending or refinancing interest only periods. I was wondering if you could unpack a bit of a framework on the best way to prepare your financial situation so that a lender will consider extending your interest only period as having an extra one, two or three years on higher can be the difference between letting out your first property at a cashflow loss compared to being neutrally geared, which is, in my opinion, than Nirvana as a Young Bloke. P.S Go the Swans.
Question from Adam on Understanding Demographics and Median Income
Hi guys, how you going? My name is Adam and I love the podcast! I only found it about a week ago. By Day 3, I’d already ordered and read the book, by Day 5, I’d already recommended to about a dozen people and I’m just chewing through the backlog of the podcast. I’m currently on the Sunshine Coast and I’m looking to harvest equity and investment property I have in Adelaide to purchase a PPR while I’m working here because the rent to lifestyle ratio isn’t working in my favour. When I’m laying down the suburb demographics, you say aim for suburbs that are round about at a 35-medium age with an increasing median income. How do you account for the fact that retirees are either there to downsize or buy through their assets, pay for the premium lifestyle, and so drive up the median age, drive up the prices, but drive down the income? Thanks again, hope to hear answer from you. Have a great one.
Question from Antares Selling Your Property To Afford The Next Property
Hi guys. Just wondering your thoughts on our situation. We’re looking at buying a waterfront property on the central coast under $2 million and potentially holding our existing home, which is almost paid off and renting it and looking at selling it to maybe next year. It’s a lot to hold. It’s probably a 40% of our income if we didn’t have a renter. And also would it be better make to buy and sell the same market? Just when your thoughts on that guys. Thanks.
Question about variances in data estimates and actual purchase price from Jonny
Hi hopefully Bryce or Ben, I’m writing to you guys as I have a question and I’m desperate for an answer… I am in the cooling off period of my first home. The house is in Sturt, Adelaide. The property is 720m^2. Core logic data suggests the property is worth 485k. My offer of $490K has been accepted. With all this uncertainty around COVID-19, have I paid too much? Or should I go ahead with the sale. Currently tenanted at $360 per week until July. I am borrowing 90 percent. Is it just too risky as it’s my first investment? Or because I’m planning to hold for long term is it still a good idea? Hopefully someone can pls get back to me. Thank you in advance. Johnny.
