It’s been a while since we’ve said this (which makes it even more exciting!!)…
Ben reckons he’s found his new FAVOURITE QUESTION!!!!
That’s because this question is something EVERYONE can relate to: Do I need to choose between building wealth or living the lifestyle you want?!
Folks, this is the type of thing that we deal with on an everyday basis!
We’re using our years of battle-hardened experience and razor-sharp knowledge to outline what this question essentially boils down to, revealing how thousands of our clients have overcome this dilemma, and recommending just one thing that can clear all the rocks and rubble on anyone’s investing pathway, making the journey more akin to a walk in the park.
Plus we’re covering loads more territory including…
- How does our $2k weekly passive income goal tie in with Super?!
- And we’re talking Equity – should it be used to refinance or kept for the rainy days?! Is there a catch all solution to this?! And given today’s rising interest rate market, is now a good time to be making this move?
- We also reveal some of our biggest Do’s and Don’ts when renovating and share our top resources to help you get the best bang for your buck.
So if you’re ready for lots of evergreen wisdom, tune in now folks! 🛠️️👷
Questions we Answer
Bernie Blyth on How to hold properties with higher cashflow drain
Hello Bryce & Ben.
This is Benny from Bayside in Melbourne. Firstly, a quick thanks for the value-added content you bring.
My question today is about how to adjust one’s portfolio in response to maintaining a healthy cashflow. My wife and I live in Metro in Melbourne and have 3 kids between 10 and 16. We’re happy in our own home and have 2 investment properties. Now first, the 2-bedroom unit, we bought in 2006 has double in value and is now positively geared to a degree.
In 2014 we bought a tiny but old 1950s brick house in one of Melbourne’s baysides suburbs, which is a land bank. On the positive side, it’s experienced capital growth in the interim and is situated on a block of land that has redevelopment potential such as a subdivision.
On the challenging side though, it’s still negatively geared and being an older property, it doesn’t rent for anywhere near as much as the recently developed properties around it and even though we both work, we have the cost of 2 kids in private schools simultaneously for the next six years combined with the prospect of rising interest rates, we are considering our next moves in terms of balancing property growth, cash flow and lifestyle.
In general, what options would you recommend for consideration?
Jake on – Pulling out equity and purchasing another
Good day Guys, Jake here.
Chasing an answer for this question that’s been sitting on my mind for a little bit. So my partner and I have recently refinanced a house in the Southeast Suburbs and fortunately we’ve found that there’s a bit of equity in there which is good.
Now, what are your thoughts on pulling out essentially every bit of equity in the property to then purchase another one given that interest rates are going up and then might be a little bit of a plateau or even a slight decline in the property market. I’d love to hear your answer.
It’s probably pretty straight forward but yeah, I though it would be a good one to myself and probably a lot of other people who’ve purchased in that pre-pandemic period so I’ll wait for the answer and appreciate the feedback and also go the tikes and hopefully onwards and upwards you gain for this season.
Adam Lett on Planning include Super?
Morning Ben, Bryce and team.
My name is Adam and I’m a long time listener of your show. My question relates to the plane of 3 to 4 quality investment properties to derive an income of $2000 a week in retirement. I’m working towards this goal.
My question more specifically is how is this plan ties in or (dove tails in?) with an individual superannuation balance?
By this I mean, if I or an individual had a healthy super balance of a million dollars plus is the $2000 a week on top of the super? Really like to hear your thoughts on this, keep up the good work.
Laura Turner on Resources to help with renovating
Hello, I’m Laura, I’m from Melbourne.
My partner and I own our own home and we’ve just purchased our first investment property which we have nearly finished renovating.
We purchased an old house, 3 bed, 1 bath, and we’ve turned it into 3 bed, 2 bath, with a walk-in room and we’ve updated everything to be within this century. I’m a conveyancer. My partner’s a carpenter and our plan moving forward is to keep purchasing property to renovate as this is something we both really enjoy, plus we see it as a quick way to grow our equity.
What I don’t really understand is how to work out all of the figures.
This current house that we have renovated ended costing a lot more than we anticipated. I haven’t had it valued yet as we are not finished but I am crossing all of my fingers that we haven’t over capitalised and that we will walk right with some kind of profit and then nothing is certain however,I am wondering if there’s someway you can recommend where I can go to learn how to find the right houses to renovate, how to calculate cost and what the end valuation is likely going to be.
Any courses, tools or calculators you can recommend we use before we can go ahead and purchase our next property would be super helpful. Thank you!
Free Stuff Mentioned…
- If you want to get some “Line of Sight” for your long-term plans, why not check our Property Portfolio Plan?
- Get our FREE best-selling book, “The Armchair Guide to Property Investing” here. Just pay shipping and we’ll send you a free copy 😊
Our Renovation Resources recommendations!
- Episode 026 | Q&A – Property through Trust, Renovating Established Properties, Gentrification and Investing in Regional Centre
- Episode 61 | Finding the right property education and renovation tips – Chat with Jane Slack-Smith
- Episode 188 | What’s Renovating got to do with Dating? Chat with Naomi Findlay
- Episode 181 | Tips from Three Birds Renovations on How to Create the Perfect Renovation, Survive it, and See a Return on Investment!
- Check out Three Bird Renovations for more renovation content and courses!
- Episode 214 | Fiona Bengtsson – From Near Bankruptcy to 11 Renovations and counting!
- Episode 249 | The 4-Step Framework To Renovate or Build Your Home… AND Enjoy it! – Chat with Amelia Lee
- Episode 284 | Kyal & Kara from The Block – How To Renovate, Raise Kids, Run A Business & Not Lose Your Mind in the Process
- Renovation does not equal Riches
Here’s some of the gold we cover…
- 1:15 – Ask us a question on our Speak Pipe for a chance to win our Start & Build Course!
- 1:50 – So…how’s Labour going?
- 3:22 – Folks, the REALER you are the less….?
- 4:44 – Q1) How to hold properties with higher cashflow drain
- 6:35 – It’s really a question around C____
- 8:11 – THIS is what most of our clients do!
- 10:25 – The 1 thing that everyone needs in situations like these is…
- 11:39 – Getting wealthy and STAYING wealthy are 2 very different things folks!
- 14:46 – Couples that come to us often have THIS problem
- 18:12 – The Compounding Effect – why you should hold!
- 19:31 – Q2) Pulling out equity and purchasing another
- 20:49 – Ben’s Warning!
- 23:13 – Make sure you have these foundations down!
- 24:38 – If you release your equity now, you’ll get less…
- 25:00 – For all our listeners: NOW is a good time to do these things
- 26:20 –The 3 best equity release strategies!
- 28:35 – The 3 steps to go from here (If you need one, why not check us out? 😊)
- 32:22 – A shoutout for our clients!
- 33:07 – Q3) Planning include Super?
- 36:50 – Check out these examples too!
- 37:14 – Q4) Resources to help with renovating
- 38:18 – Why shows like “The Block” don’t WORK!
- 40:10 – The minimal rule of thumb for renovating
- 41:07 – THIS is where you’ll get the most bang for buck…
- 42:46 – How much should you spend on your specs?
- 43:17 – For repeat renovators, be careful about this exemption!
- 44:03 – Bryce’s top 3 considerations
- 45:45 – Why Renovating to hold is a better strategy….
- 46:54 – How to test the asset’s location!
- 47:54 – Reno resources we recommend!
- 49:40 – Find your phone…from your watch?! (For you Apple Users)
- 51:03 – There’s a developing Building Supply challenge…