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Episode 247 | How to Invest in Property When You’re Busy Raising a Family, Holding Down a Career, Have No Time or are an Investor Already

No time? But still wanting to invest in property? Keen to find out what strategic step you should take next?

Attention! Busy folks and experienced investors…

…. yes, that’s you lot down there at the back who are raising a family, holding down a career, investing in property already AND/OR simply have a lot on the go….

… this is YOUR episode!

 

‘Cos today is PART 2 of our tips and tailored Q&A session for each investor demographic… and today we’re tackling…

  1. Busy folks
  2. Experienced investors

So, if you’re a curious to learn how to invest in property WITHOUT sacrificing your life, lifestyle or livelihood… or you wanna hear how to review your current portfolio, or what to do when you’ve ALREADY got one or two investment properties under your belt…. then you’ve come to the right place!!!

Today we’re answering the common questions folks in either/both of these demographics ask us, so that you’ll be educated, efficient AND effective at building out your property portfolio.

 

Your Free Reports Tailored to This Episode:

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Other Resources Mentioned on the Show:

 

So… THE QUESTIONS — 

For Busy Couple and Families:

  • Q1: How do we afford to invest in property when we’re busy raising a family and still keep money for holidays, schooling, being home and other important lifestyle needs?
  • Q2: How much does it really cost and how long will it take to build a stress-free property portfolio that we can live off?
  • Q3: Is passive income through property a possibility or a pipe dream? Will we really have enough to retire comfortably?
  • Q4: Who can we trust to set us on the right path?
  • Q5: What’s happening with property now? Where are we in the property cycle and what locations should we invest in?
  • Q6: What type of properties should we be looking at if we are in this particular demographic?
  • Q7: What’s the best loan structure and strategy for my situation before I’m in this particular demographic?
  • Q8: When should we buy the next one? After the kids are in high school?
  • Q9: How can we find the best way to get started at this stage of our life?

 

Experienced Property Investors:

  • Q1: Is your current portfolio correctly structured for optimal growth and will new property strategies actually work for you?
  • Q2: How many do I actually need?
  • Q3: How do I review my portfolio?
  • Q4: How can you grow your portfolio quickly without risking all you’ve worked so hard to achieve?
  • Q5: How can you invest in property when you’re nearing retirement and concerned about conserving your current nest egg.
  • Q6: What’s the truth about self-managed super funds? Should you have one? Us it set up for ultimate performance and is your current structure in danger of noncompliance?
  • Q7: How do I diversify my portfolio?

 

Today’s Links…

If you’re not keen to download the booklets, no worries! Here is the list of resources that were mentioned today:

 

 

 

 

 

 

 

 

Episode 246 | Real Estate 101: Everything from Buying Your First Home to Beginner Investor Tips

Attention! First-time investors, first home buyers and property investors needing a refresher!

This episode is your official “How To Guide” — including everything you need to know about buying property… AND investing in it! We answer your questions, we tell you exactly what you need to know to avoid the mistakes from the get go, what investment makes for a good investment AND how to get onto the property ladder quicker and without the hassle!

This is Episode #1 of TWO EPISODES that cover the types of property investor demographics out there… our beginner folks all the way to our astute listeners who already have a property portfolio to their name. And guess what? Today is ALL about our “first time-ers”… first time investors… first home buyers…. and those who wish they’d had access to this info when they FIRST started!

We’re also throwing in Free Report for EACH of the profile including a transcript, commonly asked questions, links mentioned in each of the section and Additional Bonuses to help you in your journey. So between these two episodes, make sure you pick up the Demographic Booklet that’s designed for you!!

 

Today’s Freebies…

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So… Today’s Questions are…

For First Home Buyers:

 

For First Time Investors:

 

Today’s Links…

If you’re not keen to download the booklets, no worries! Here are the list of resources that were mentioned today:

 

 

 

 

 

 

Episode 244 | Borrowing Power in 2019: Everything You Need To Know

APRA has recently made changes that affect a lender’s borrowing power — what does this mean for property investors and home owners… and their interest rate?

Well, folks… we’re deep diving on this today (and getting a little bit technical), because in July 2019, the Australian Prudential Regulation Authority (APRA) came out with their revisions to the “buffer” and “floor rates” of their Prudential Practice Guide APG 223.

And why are we telling you this? In a nutshell: this results in a change, potentially an increase, in a lender’s borrowing power… which means YOU can potentially borrow more money!!! (Not sure why this is a good thing? Listen to this episode on the basics of borrowing power first).

Now, if you’re wondering what on earth we mean by “buffer, “floor rates” and “potentially”… take it easy… we’ve totally got you covered here — we explain all this, incl. examples of a single person AND a couple, so you can get a “real life” angle on all this. Plus, Ben’s obviously in his element so he drops a lot of new gold and mortgage broking insights!

Oh, and did we mention that we’ve also sneaked in a little Finance Q&A as well?? Yep, true story. You can find the exact questions a little further down in these show notes 🙂

 

Free Resources

 

Key Learning Points

  • Debrief: How do APRA’s changes affect borrowing power?
  • Why is Ben describing lending in 2020 with the world throttle?
  • What is the variance in borrowing power of Principle and Interest vs. Interest Only Home Loans now? What does that mean for an investor?
  • Quickstart History Guide on Lending
  • What has happened to the Floor Rate?
  • What is each of the “big four” bank’s NEW floor rate?
  • What is a Sensitivity Margin?
  • How did poor regulation contribute to the Global Financial Crisis?
  • What’s a gig economy?
  • How much is the Commonwealth Bank of Australia (CBA) now spending per year to rectify and enforce new changes following the Royal Commission?
  • Example: A Single Person’s Borrowing Power
  • Example: A Couple’s Borrowing Power

 

The Questions

Question from Bella

We just bought a house and are setting up our loan. Should we get our wages put directly into our offset account and then pull money into our everyday account for expenses and keep a minimum amount in there, say $2,000? My husband wants to do it the opposite way. And just pay our offset with leftovers after expenses. What should we do?! HELP! 

 

Question from Todd

Hi Ben and Bryce, Love your podcast! Have learnt so much since I found it 6 months ago. My question is loan structure related, with tighter lending these days is it an optimal strategy to split my PPOR Loan into 3 or more splits so I can pay them off quicker and then re-borrow once payed off to invest? Or is it better to build up a large sum in my offset account? Thanks in advance guys and go Eagles Stig!

 

Question from James

With the RBA’s drop in interest rates to 1%, I (like most people) are considering refinancing away from my current mortgage provider. We have been looking into a few options, but keep hitting a hurdle due to being on one wage and having 2 properties (our owner occupied and one investment) as I am currently on a non-permanent workers compensation payment through DVA, the banks will not recognise my wage as a salary.
So, my question is, with APRA’s change and loosening the reigns on lending, has this already came into effect? If not, when is this due to be implemented by the banks? Thank you

Question from Stuart

Hi Bryce and Ben, long time listener, first-time caller from NZ. Love listening to all your podcasts every week. Quick question regarding my PPR and mortgage offset. I have received a windfall, which I am wondering the best use of. I could put it all into my offset account against my mortgage and with my current offset savings this would 100% offset my mortgage and I continue to pay it down over the next 10 years. Or am I better off paying down a large portion off it immediately leaving the balance fully offset to pay off over just a few years. I guess it’s a matter of keeping the offset bucket full against the mortgage, or paying down the mortgage ASAP. I also have 1 investment property, which I’ll need to reorganise to start offsetting ASAP. Hope that makes sense, thanks.

 

And here’s the table that Ben promised on the show! 😉

 

 

What are the Best Performing Properties in Australia?

And we are back again on Weekend Property on TODAY chatting with Alison and David about the best performing properties in Australia!

So what are the boys covering in this segment?

 Are we going to continue to see this doom and gloom in the market?
 What are the locations that buyers should focus on?
 What are the three factors that are affecting the value of the location?
✅ Asset selection tips for each of the major cities across Australia

Tune in now to find out more!


Alison: Well, house price in Australia has now been falling for more than a year and many suspects that they will continue to go down.

David: Yeah, it’s such a challenging market it’s hard to know which type of property will perform best for now. We’re joined by Ben Kingsley and Bryce Holdaway all the way from The Property Couch Podcast. Guys, good to see you! It seems to be a bit of doom and gloom out there at the moment. Every time I pick up a paper, it’s a disaster. What are you guys thinking?

Ben: Yeah David, generally speaking, we are probably going to see some further declines in some market across Australia. We had a building boom so we now we got the reminisce of a bit of oversupply and we also got a credit squeeze going on as well which meant that demand side of the equation is also pressured. You know, I think 2019 is going to be a year where it really is about flight to quality and there are certain types of property that are going to perform better than others.

David: But as you said though, is that something that… is it the levelling out that we needed to have as a nation?

Ben: Yeah definitely in terms of it being a manufactured correction in terms of taking over the lending activities and in terms of scrutinising lending policy means that we don’t have the same sort of rush. That definitely affected the appetite for investors as they can’t borrow the money. That’s part of the manufactured correction that we see from the regulators.

Alison: Are there are any suburbs that are bucking the trend?

Bryce: Look, in terms of, helping people.. Because it’s an essential need right? So despite the fact that you’re reading the headlines and it’s saying that it’s really negative, we still need to put a roof over our head. So we like to help people to understand the bigger picture principals to buying property that will probably outperform and it usually comes down to three things. Economic activity, human interest and human behaviour.

So economic activity is just a fancy way of saying how am I going to get a job, is it easy to get to work in the morning, am I too far out, do I have a huge commute because that’s going to make a huge difference. Alternatively, if you’re in a mining town, you’ll get a job but you won’t have the other ones.

Human interest is, what am I going to do at the weekend when I’m not working? Is there a park, is there a cafe, can I meet up with my friends, is there any water nearby?

And the third of is human behaviour so that’s largely the status test. So what would people think of me if I live in this suburb? Do they think very highly of me or do they think I’m in a lower socio-economic area? Alternatively, in a gentrifying area. So if you overlay economic activity, human interest and human behaviour across the suburb in a market like what we’ve got now, it’ll help you make a decision into what suburb you’re looking at.

David: Alright let’s talk about the suburbs. What areas are best in each city? Take us through!

Ben: Yeah if we do a fly-around, I’ll start with Brisbane. Brisbane is a story of a river city. So in terms of being closer to the river and if you can get on the north side of the river, that’s probably where the job opportunities are. Then if we look at Sydney, it is a story of being close to the harbour and also the beaches. Obviously, you got bigger congestion as you get closer to the CBD but because of that, being close to a train line helping you get around the city a little bit easier. There are some of the drivers.

Bryce: Now in terms of Brisbane, there are similarities to Sydney but it doesn’t have the harbour or beach as a driver so it’s really how close can I get to the CBD. And that congestion is enormous so we got to make sure you’re buying in an area with a train line or access to a train line. Hobart, that’s all about views and being able to walk to the CBD because it’s such a lifestyle location.

Ben: Yeah terrific. And then we go to Adelaide. We are starting to see a bit of a theme here in terms of access to jobs, CBD, greater amenity but also the beach story there and it’s a bit of that also for Perth. Bit of rinse and repeat for Perth. We’re talking about the beautiful coastline there so we can be closer to the beach where there is a bit more scarcity in the land there. And then also, getting into the job centre so coming back towards the CBD. So the proximity pieces where you get all of those amenities together is what gonna drive those demand in those better areas.

Alison: Keeping in mind, the more the proximity to those things is also going to cost you more.

Ben: They do.

Alison: So how much can you afford is going to be an issue.

Bryce: Yes exactly! Some people can’t do more, can they?

Alison: Alright gentlemen, thanks for joining us this morning and thanks to those tips.

Boys: It’s a pleasure, thank you.

 

And there are heaps of other free resources on our website. We update them every week so make sure you check them out before you go. 🙂

Any questions or suggestions for new topics? Just send them in to info@thepropertycouch.com.au or fill in the form below and we’ll chat about it at our future Q&A episodes.

 

 

 

What are the Secrets to Selling your Home? 🏠🤫

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The replay is ready folks! 👏👏👏

Ben chats about all things property with Alison and David on this segment of Weekend Property on TODAY. What to expect in this video?

 What does a manufactured correction mean?
 Will interest rate go any lower?
 What do you need to do if you’re selling in this market?
 Some of the must-ask questions for your agent.
 Is this a good time to UPSIZE?

Tune in now to find out more. And if you’re wondering whether to Sell or Hold your property, do check out Episode 220 with Jeremy Sheppard where we talked ways you can answer this $64 million question!


Alison: Well it’s great to kick off the new year with a fresh start and for some people this could mean a new home.

David: Whether that’s to downsize or upsize or just relocate, lots of Aussies are looking to sell in the next few months. For more we’re joined by Ben Kingsley from The Property Couch. Ben, good to see you mate.

Ben: G’day.

David: Look, let’s talk about the trends at this time of the year. What are you seeing?

Ben: Yeah look, this is the time of the year where we actually pause and think about our big changes that are going to occur and one of the biggest changes is, is the house that we’ve got right now and the location we’re living in, is it the right for us or are we ready to sell up and move on?

Alison: So I was reading the front page of the paper today and there were reports that the Reserve Bank could cut interest rates within months because there are warnings that Melbourne and Sydney prices could fall further 20%, other capital cities 15%. I mean, are these figures you’re hearing because they are huge numbers.

Ben: They are huge numbers.

Dave: It sounds scary to Ben.

Ben: Yeah they do and I think that’s what’s happening right? We’ve got this sentiment change and this nervousness around the place. Now so it could be self-fulfilling if we actually all believe it and then we all start to panic. We don’t need to panic. You’ve got to understand that this has been a manufactured correction. So the regulator’s have stepped in when the market was going crazy and they’ve really limited borrowing power. By doing so, that stopped this momentum, we’re seeing a reasonable correction in the market place. So the Reserve Bank to potentially lower interest rates is actually a good thing because what will mean is that borrowers will have that little bit more borrowing power and we’ll see that market stabilized.

Alison: But how much lower can interest rates go?

Ben: Well quite a bit, to be honest with you. I mean the cash rates sitting at 1.5% but we’ve seen with the cost of money overseas, has actually increased so that’s been flowing on to what we pay as borrowers. The reality is, if they move those rates down then we’re going to see a little bit more borrowing power and a little bit more comfort and that might bring more buyers into the market.

Dave: All right. Well, let’s talk about people who want to sell at the moment. What should they be looking to do?

Ben: Yeah, well it’s a tough market right because there’s not a lot of buyers out there. So you absolutely need to present your property in the best possible light. It needs to stand out above your competitors. The second thing you want to be looking at is, you’re gonna have to do your homework. Your property is not worth what it was 12 months ago okay? So you’ve got to be realistic about that price point and who’s gonna sell that property? That agent needs to be the best you can find to basically find that buyer for you.

Alison: Well when it is a buyers market like it currently is what sort of questions should you be asking of your real estate agent if you do have to sell?

Ben: Yeah good question Ali. I mean obviously there’s the easy ones which is, what’s my property worth and how much do you charge for your fees. But there are more important questions that you want to be asking. How enthusiastic are they about selling this property? I mean if they’re not enthusiastic, it’s gonna flow through in terms of how they look after the buyers coming in. So that’s number one. Then who’s my target audience? Is it going to be families, is it gonna be young professional couples? I really need to hone in on that then ultimately, what’s our selling strategy? Are we gonna go auction, are we gonna go private sale? Those types of things and then you can’t sell a secret. What’s the marketing strategy? How do you get eyeballs on me in terms of how am I gonna get so many people interested in this property and finally, how good is the agent? You know, are they a good salesperson? Are they gonna really rustle up the best possible deal?

David: So should people out there be cautious selling at this point in time? I sense a little caution from you.

Ben: Yeah, well look, if you don’t have to sell David, don’t. I mean you know, just wait. This is a cycle that happens all the time but for people who are looking to upsize, seriously this is a great time! What a lot of people make the mistake of doing is that they wait for the market to move and so if they’re upsizing they’re gonna pay higher because there’s a lot more demand in there.This is a great time to actually buy if you’re looking to upsize. Now, one tip here though, sell your property first. You’ve got to go to market with it. What a lot of people make the mistake is…

Dave: They go on a bridging loan?

Ben: That’s right! They go and buy that property then go, “Oh, we can’t we sell this property now.” So that’s a really important message for the viewers.

Alison: All right some great advice there. Thank you Ben for joining us this morning. How good is the vibe here at the tennis by the way?

Ben: It’s amazing! On my home town so I love it.

David: Grab a racquet mate. We’ll see you later on at the court.

 

And there are heaps of other free resources on our website. We update them every week so make sure you check them out before you go. 🙂

Any questions or suggestions for new topics? Just send them in to info@thepropertycouch.com.au or fill in the form below and we’ll chat about it at our future Q&A episodes.

 

 

 

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