With higher interest rates and tighter budgets on the forecast, some folks have been left wondering… 

“How does lifting interest rates – when everything is already so expensive – actually help with inflation??” 

And for today’s episode – what do interest rates and inflation have to broccoli and property?! 

 

To answer this, we’re holding a special 101-crash course in inflation to explain why the Reserve Bank of Australia has taken its course of action and Ben dovetails it all together to demystify how it impacts and interacts with the Australian property market.  

And since it’s a massive Q&A Day, we’ve got tons more inflation-themed questions from folks probably wondering the same things as you! We’re unpacking… 

• Debt to income ratios (aka. the tool banks use to assess your credit worthiness): how can you restructure your debt to best benefit you?  
•  And for investors wanting to release equity – beware! We’ve recently been hearing certain tax schemes that can reduce your 20-year loan to …4 years?!  

 

Tune in now folks, this episode has tons of gold on inflation to help you get through these rate hikes.

 

Free Stuff Mentioned… 

• Fill out PIPA’s 2022 Sentiment Survey: Folks, this year’s Sentiment Survey by the Property Investment Professionals of Australia (PIPA) is perhaps one of the most important ones we’ve had yet! Let us know your experiences as an individual in the property market and have your voice heard. Complete the survey here.  
• BingeGuide to Property, Finance & Money Management – Download here  
• FREE eBook – Make Money Simple Again  
• FREE Book (Just pay for shipping!)– The Armchair Guide to Property Investing  
• Introducing moorr: our newest evolution of the MyWealth Portal! Check it out here.  
• Let us know how we’re doing! We want to know if we’re doing the right thing. Leave us a review here and let us know your thoughts.  
• Watch the RBA’s August Announcement here: Hear the Reserve Bank of Australia’s newest cash rate here.  
• Send us a question: Be featured in our next Q&A episode! Send us a Question via the SpeakPipe widget here.   

 

Want to work with Bryce & Ben’s Award-Winning Team? 

• a roadmap to $2k per week passive income? >> Start a conversation with our Qualified Property Investment Advisors…  
• buying an investment-grade property in an investment-grade suburb? >> Start a conversation with our independent and experienced Buyers Agents… 
• your borrowing strategy? >> Start a conversation with our Investment Savvy Mortgage Brokers… 
• your defence implementation? >> Start a conversation with our Financial Planners… 
• maximising your tax refund? >> Start a conversation with our Investment Savvy Tax Accountants… 

 

Here’s some of the gold we cover… 

• 0:00 – A preview of today 😊  
• 2:00 – The Sentiment Survey + tons of other free resources here!!  
• 6:38 – 4 Golden Statements that Charlie Chaplin gave us…  
• 8:52 – Q1) Inflation, Interest rates & Broccoli 
• 10:11 – Inflation 101: Key concepts to understand!  
• 12:21 – Was inflation imported into Australia???  
• 12:59 – THIS is what happens if inflation gets out of control… 
• 13:52 – So why has RBA taken this course of action??  
• 15:14 – It’s about creating B_f_e_s  
• 16:34 – Why Australia’s culture + housing system will ensure we will prevail!  
• 18:14 – It’s because of these that lettuce and broccoli is expensive!  
• 20:10 – The Reserve Bank of Australia’s 2 Goals  
• 21:10 – Q2) Withdrawing Equity and Offset Mechanics 
• 22:14 – Let’s be clear! This is a finable Tax Scheme!!  
• 24:24 – Beware of people selling this theory… 
• 26:20 – Folks, we see so many people make these mistakes!!  
• 29:12 –How we would solve this…  
• 31:30 – Going Liquid: Listen to this for options for releasing your equity!  
• 35:10 – Q3) When Should I buy again? 
• 37:40 – Should Ben (The question-asker) buy local?? Go through this thought process folks!  
• 39:30 – The Commuter Belt Reset  
• 40:04 – Why this question is really about Cost vs. Benefit!!  
• 41:24 – How do CFOs, CEOs, Paper Planning and this question relate??  
• 44:02 – Q4) Debt to Income (DTI) ratio  
• 44:45 – What is DTI (and why does it matter??)  
• 44:52 – How investors restructure debt  
• 46:37 – How do lenders calculate your borrowing power??  
• 48:47 – What happens when your DTI exceeds 6…  
• 50:05 – The role of Loan to Value Ratios! 
• 51:40 – Getting a lender who isn’t DTI certified – this is the catch!! 😮  
• 54:28 – Make sure you unpack these numbers behind the DTI Scare News…  
• 55:35 – Why new estates have high DTIs!  
• 58:40 – How to change your DTI + get through this high-interest rate period!  
• 1:01:40 – Have trouble managing discretionary and non-discretionary spending? Why not try moorr!  
• 1:02:12 – Does that mean all property prices will drop?!  
• 1:03:38 – Be a part of Q&A sessions! Send us a SpeakPipe here.  

And… 

• 1:04:46 – Sticky fingers? Closed a tab by accident? Use this shortcut!  
• 1:06:18 – How does property interact with inflation??  
• 1:09:11 – What this means for property owners…