361 | When Is It Too Late To Get Into Property?

Have you left it too late?

Has the market moved?

Are you too old to start?

With the media hyping on about how hot the property market is these days, we get that some of you might be feeling a little anxious (even frustrated!). Everywhere you go, you’d probably hear people saying, “The prices are crazy these days!”

And yes, they might be right.

So… If you’re worried that it might be a bit too late to start investing in property, then today’s episode is perfect for you.

And the best part is…

There are quite a few calculations today too!

Better get a pen and paper on standby or just reduce the playback speed on some parts 😉

Oh! Before we go ahead with the questions, just a bit of a teaser… Make sure you stay till the end cause Bryce and Ben will be sharing their early prediction on how this year’s property market will end and where will next year’s market go on the “What’s Making Property News” segment!

 

 

Free Stuff Mentioned

• Summer Series is around the corner and we’d like to hear from you! If you’ve gone through (or even going through) a financial transformation journey, let us know. We’d love to listen to your story! Simply fill in the form below or go to  thepropertycouch.com.au/mystory
• We are also looking for a talented copywriter/storyteller to join our team! If you’re interested, learn more here:  https://www.seek.com.au/job/54189273
• (Podcast Series) The Armchair Guide to Property Investing! Listen on Apple or Listen on Spotify
• (Free Book) The Armchair Guide to Property Investing – Get a copy here
• Bonusisode with Julia Hartman! Tune in here.
• Free Report: The Top 5 Tax Rules Every Property Investor Must Understand – Download here

 

 

The Questions We Answer

Question from Luke about Having a $700k Mortgage in Late 40s

My wife and I are at a crossroads.
We never thought owning a home was worth it until now…and I reckon we’ve missed the boat…
For years my wife and I deliberated over buying a home. We travelled for work in our 20’s so renting was easier while we were on the go… by the time we settled down to have kids one income made it almost impossible to save for a deposit.
Fast forward 15 years and we’re 46 with 2 teenage kids and still renting…
We have around $260k in super between us plus $80k in savings. We’re sick of seeing that $3k rent money disappear from our banks each month and we are scared of renting as we age further so is it worth having a $700k mortgage at our age? And if not, what is the best way for us to secure our future?

Recommended episodes for Luke

• Ep 91 | Q&A – Affordability for First Home Buyers, Overseas Investment, Is it ever too Late to Invest and more
• Ep 142 | Q&A – Can you achieve a passive income in 3 years? Are you too old?
• Ep 295 | How To Reach The Summit: Achieving $2K Per Week in Passive Income – Q&A

 

 

Question from John about Selling Shares to Put in an Offset Account

Hi Bryce and Ben.
Love the podcasts and I’ve been a keen listener for a couple of years now.
I’ve learnt a lot from you guys and have recently just bought my first investment property. I also have a small amount of shares invested in the market which I’ve made capital gains on.
My question is – is there any benefit, tax or otherwise, in selling my shares and putting the money in my offset account?
For example, can I reduce my capital gains tax on my shares by moving that asset into the offset account?
P.S GO GWS!

Recommended episodes for John

• Ep 165 | Royal Commission’s Role in the Lending Sector and Q&A on Improving Loan Serviceability, Sell v Hold Strategy and Investing in Shares
• Ep 259 | Q&A: A Tax-Saving Hack For An Offset Account, The Simplest Way to Keep Track of Your Properties and How To Distinguish “Emotional Value” from “Property Value”
• (Video) Bonusisode with Julia Hartman – Watch here

 

 

Question from Renee about When to Buy a PPOR?

Hey guys, I have recently found your podcast and am grateful for the wealth of knowledge you provide.
So firstly, thank you!
I have a potential podcast question. The penny has just dropped regarding what you said about obtaining negatively geared investment properties with an aim for capital growth early on, then leaning towards neutral and cash flow positive properties later on.
My question is, strategically when does buying a PPOR fit into that scheme? Should you invest, sell, buy PPOR then invest with the equity? Particularly in south Sydney where anything 3 bedroom is at least $1.5 million.
I thought some personal context might be helpful.
I’m 25 and have an apartment in south Sydney that I’m currently living in but could be an investment long term. I have a stable income about $115k that will go up to about $150k by the end of next year which is when I will hopefully buy an investment property.
Obviously holding on to both properties would be the goal but I’m struggling to see how I could buy a PPOR by 6 or 7 years time without having to sell both.
Thank you in advance!

Recommended episodes for Renee:

• Ep 63 | Q&A – What’s the next step to building a portfolio, size of the portfolio, IP or PPOR and diversifying wealth strategy
• Ep 130 | Stage to Savvy: How this Singer/Actor Built her Own Impressive Portfolio Without Guaranteed Work – Chat with Rachel Cole
• (Video) CPA Public Practice Conference in Lorne – How to Plan to build a Passive Income For Life with Property Investment

 

 

Question from Peter about Get a Loan with high interest vs. not buying?

Hi Bryce and Ben,
Love your podcasts. Want to ask quick question in regarding real estate investing.
I have reached my borrow capacity but can do low doc loans, would you think it better to get a loan with a bit higher interest than not buying property?

Recommended episodes for Peter:

• Ep 244 | Borrowing Power in 2019: Everything You Need To Know
• Ep 330 | Top 10 FOMO Mistakes Investors Make!
• Ep 65 | Q&A – How will technology impacts the property market, investing in strata properties and more