362 | Investing through the Telescope, NOT the Microscope – Q&A on Equity Release, Retirement Purchase & Mistakes with Borrowing

Did you know…

Back in episode 296, Bryce briefly mentioned the telescope vs microscope analogy and how it applies to picking an investment-grade location.

Fast forward to today’s episode… (66 weeks later)

We’ll be answering ONE of the questions using the same analogy. With a little twist of course 😉

So… which is a better view to take when it comes to property investing and why?

And… are you curious how the same concept can be used for two entirely different scenarios?

If that doesn’t entice you, what about questions relating to equity release, what NOT to do when seeking finance and some tips for our younger investors?!

There’s something for different groups of our community today.

Tune in now for the gold!

Q’s we answer further below 👇

 

 

Free Stuff Mentioned

• We are looking for two talented individuals to join our team! If you’re passionate with property and keen to join a fun and dynamic team, learn more here: https://empowerwealth.com.au/career-with-us/
• Start & Build Workshop, learn how you can build a multimillion-dollar property portfolio that creates $2,000 a week in passive income here – https://thepropertycouch.com.au/startandbuild
• Bonusisode with Julia Hartman! Tune in here.
• Free Report: The Top 5 Tax Rules Every Property Investor Must Understand – Download here
• (NSW only) Laws for short-term Rental Accommodation – Here
• CoreLogic Home Property Value Index – House and Unit price – Here
• Do you have a question as well? Let us know on SpeakPipe here!

 

 

The Questions We Answer

Question from Alan about Best Time to Release Equity.

Bryce and Ben, I’d like your comments on something weighing heavily on my mind.

My wife and I are very fortunate to have bought into Schofields in Western Sydney prior to the 2021 explosive growth period. We paid $740,000 in April 2020 for a 4 bedroom house on a big plot of land following all of the Property Couch “tick boxes”. Our Mortgage is just under $500k.

Our plan had always been to buy a family home, keep our buffer in an offset and pay down the mortgage to under $350k before taking on another loan for investment. Progress has been good and I thank the lord for Money SMARTS everyday.

Fast forward to September 2021, the growth has pushed many of my neighbours to sell. We are seeing astronomical numbers. Properties up $300k-400k plus since April last year, new suburb highs being set on a monthly basis and more and more agents knocking on the door pushing for stock. I know that this has increased the value of our property through pure osmosis, and we are now unsure of how to plan our next purchase.

We want to hold on to this property and NEVER SELL.

We had wanted to buy another property within the Golden Hour Commute region, but the level of debt required is now nauseating. Everyone I talk to is now rushing to the regions and that too concerns me.

The question(s):

• Is now the right time to pull equity from the house, take on more debt (earlier than planned) and make it work for Sydney?
• Is there confidence in the regional markets where things are more affordable?

Thanks in advance, your loyal listener.

Recommended episodes for Alan

• Ep 69 | Q&A – Where is that sweet spot between Growth and Yield, investing in metro or regional and more
• Ep 180 | Building A Portfolio in a Changing Market – LIVE Q & A in Melbourne
• Ep 295 | How To Reach The Summit: Achieving $2K Per Week in Passive Income – Q&A
• Bonusisode with Nerida | A Permanent Shift To Regional Locations?!

 

Question from Wayne about Where to buy for retirement

Hi fellas great show.

My wife and I are both in our very early 50s.

We live in Brisbane in a house that’s worth about $1M with no mortgage. We also have a house on the North QLD coast which is worth probably about 420-450 thousand which is currently rented out for 350 a week which we have no mortgage on that, both places are owned outright. We have no children living at home, no debt, don’t have any car loans, we earn in roughly about 65,000 a year with some potential if we wanted to do overtime to earn more but we just chose not to at this stage.

Our question is, we are looking to retire down to the Southern end of the Gold Coast in about 8 to 10 years and we’re not sure whether we should buy something there where we want to live and have somebody in there renting it and with our incomes, we could help pay that house off in quick time or, do we buy another place in Brisbane and rent it out and when it comes times for us to retire so either or of two of the houses then buy a unit down there outright.

Anyway, I hope you can help me out.

Recommended episodes for Wayne

• Ep 295 | How To Reach The Summit: Achieving $2K Per Week in Passive Income – Q&A
• Ep 353 | What’s Coming Next? The Future of Australian Property! – Chat with Simon Kuestenmacher
• Ep 355 | Zero Debt & $2,000 A Week In The Bank: HOW?!

 

Question from Mel about Tips for Young Investors

Hi Ben and Bryce love the show. You guys have been amazing.

I actually bought your property course and I have been doing it with my dad so every weekend we get together and we do a couple of hours, we do one or two modules and have a chat about it, it’s been lovely. Me and my dad are buying an investment property together.

He’s in his 60s and I am in my 30s it’s enjoy the process of doing it together but also for all of the beautiful reasons that you want you know for a time in and income and all of that so I guess I just wanted to know if you have any hot tips for young players remembering that he’s in his 60s, I’m in my 30s, we’ve got 70K saved up, we’re gonna go to a regional town coz that’s all we can afford and look up buying a house’ cause I think that might have a better growth than an apartment say.

Is there absolutely any tips you wanna give any hot tips for young players that, anything at all. Your advice would be appreciated, something we could think about or not think about that would be great. Thank you guys!

Recommended episodes for Mel:

• Ep 46 | Q&A – Things we would have done differently, Buying sight unseen, Tax and purpose of property, Investment grade in regional centres and Joint ventures
• Ep 116 | Q&A – How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA and more
• Ep 323 | Rising From A Decade Of Addiction: The Phenomenal Property Investment Story You Have To Hear To Believe – Chat with Sam

 

Question from Phillip about What You Shouldn’t Do with Finance

One of the suggestions was what you shouldn’t do when starting to look at finance. Too many people focus on what you should do, and for those uneducated you can make mistakes without the right advice.

Recommended episodes for Phillip:

• Ep 164 | Q&A – How to Avoid Poor Loan Structure
• Ep 279 | How To Master The Pillars in Pandemic Times
• Ep 306 | The Game of Loans: How To Find & Finance An Investment Property