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391 | War of the Property Policies: Which is the Winner?

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With the Federal Election fast approaching, you’ve probably heard A LOT of noise around stuff like climate change, international security, and aged care funding… 

But as a property investor, you’re probably wanting to know: 

What do the parties’ property policies mean for you!?!  

We’ll be breaking down and comparing Liberal’s Access to Super policy and Labour’s Help to Buy (Shared Equity) policy and answering: How do they fit into the big picture?!? 

Like…

  • Will either policy help Australia’s economy?
  • Will dipping into your Super help or hinder future wealth creation?
  • And which demographic of people will benefit from which policy? (Plus, LOTS MORE)   

We’ll also be covering Liberal’s existing policies and turning the mic over to…our listeners!!  Yesterday we asked our Facebook Tribe for their questions around both parties’ property policies and MAN we were blown away!!   

You guys gave us a run for our money  (A big thank you to everyone who left us a question!!), and we’ve now got a fantastic lineup of Q’s that we reckon a lot of you are probably wondering too! 

So if you’re ready to get up to date with this year’s property policies and what they mean for YOU, then tune in now!!  

👇 Full list of questions below!! 👇

Questions we Answer

Q1) James Watson:  

“Am I missing something? I genuinely can’t see the benefit of the super housing policy. If you have a 5% deposit, if you qualify for and can service a loan, you will be far better off paying mortgage insurance than gutting your superannuation. Further, if you have a 5% deposit and you have the full $125,000 in your super and you borrow the maximum $50,000 and you’re looking to buy something at around 650-700,000 (ie. you’re not in a capital city), you will still have to pay LMI. So what is the point of this? Seems it will simply drive house prices up”

 

Q2) Marc Hooper 

“Would the LNP be better using Super as collateral against a loan rather than taking it out? Super should be for retirement. 

I feel taking super money out prematurely is bad policy. 

Are they trying to give us all higher interest rates? These policies will increase housing prices feeding inflation and giving RBA the need to raise rates. Do you feel that will lead to higher inflation and maybe rates? 

Love the ALP policy as is. But feel it will feed into inflation. So ill timed.” 

 

Q3) Svend Petersen 

“I reckon the LNP may have just lost the election with this dumb idea. Let’s fix the housing supply problem by increasing demand??? WTF?”  

 

Q4) Matty Tippowicz 

I think both policies are very poor ideas, especially Labor’s. Who the hell would want the government owning 40% of their property? 

 

Q5) Michael In-ski 

I’m a 32 year old professional. My super sits at about 40k today. I don’t know if anyone else is in the same boat as me but doesn’t seem like it’ll get me anywhere. Question: who will benefit from accessing super? Average Age, professions etc

 

Q6) Emma Benic 

What’s to stop someone selling the property, blowing all the cash and then needing the aged pension? 

Will they put stops in place that force funds to go back in to super? Or has this been overlooked?

 

Q7) KeLee Gee 

Access to super: will this be within the current SMSF route? 

Share equity: can people buy out the govnt share of their property? 

At what point the agreement ends? Death? Forced sale or refinance in certain timeframe? 

Both schemes: What are the limitations to type, location, age, condition of the property? 

 

Q8) Graeme Ash 

With shared equity, do you have to pay out their percentage on sale? Once again it would leave them short to make the next step on their journey. 

 

Free Stuff Mentioned… 

  

Here’s some of the gold we cover… 

  • 3:54 – Don’t fall into the trap of S___ P____!  
  • 6:40 – We reckon you should be viewing property policies like THIS… 
  • 9:05 – What is the Super Policy!? (Plus an explanation + history lesson on what Super is)
  • 15:00 – What we think about the Liberal’s Super Property Scheme!  
  • 20:44 – The Older Australians Downsizing Policy (aka. What Ben calls “a golden handshake”!)  
  • 24:50 – What are the Liberals’ other Property Policies?  
  • 27:56 – Labour’s “Help to Buy” Property Policy explained  
  • 31:00 – Why you shouldn’t panic over policies “causing” Inflation (The numbers don’t lie folks!)  
  • 35:34 – Labour’s other policies + Wrap!  
  • 36:25 – YOUR Q&As: Q1 – What’s the benefit of the Liberal’s Super Policy?! (Ben runs a pretty cool simulation here!)  
  • 47:42 – Q2 – Will it lead to higher Interest Rates??  
  • 50:30 – Q3 – Impacts on Housing Supply & Demand  
  • 51:54 – Q4 – Who wants the Gov owning 40% of their property?!  
  • 52:25 – Q5 – WHO will benefit from the Super Policy?  
  • 53:24 – Q6 – What’s to stop someone blowing all their Super & living off the aged pension? 
  • 54:47 – Q7 – Self Managed Super Funds & Buying out the Gov’s share of equity  
  • 57:59 – Q8– Paying out the percentage of the sale 
  • 1:01:05 – Our top takeaways! 
  • 1:05:38 – Listen to this if you’re not a fan of the Super policy!  

And… 

 

385 | THE GREAT AUSTRALIAN DREAM – How to make it more affordable?

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Ahh yes, The Great Australian Dream. 🇦🇺☀️🏖️

Great beaches just a stone’s throw away, endless sunny days and the ability to own a large house on a quarter-acre block of land (With enough space to invite all your mates down for a barbeque on the weekend!)…

But while this dream has survived over the years, its accessibility is another thing entirely. 

And it has not gone unnoticed!  

A recent 2022 inquiry published by the Standing Committee on Tax and Revenue addresses this very issue… 

Titled The Australian Dream: Inquiry into housing affordability and supply in Australia, it provides a list of suggestions on…

How to make The Great Australian Dream MORE affordable!! 

 And today, we’re unpacking all 16 recommendations from this report!!  

There’s all the good stuff, like…. 

How can the Federal AND State Government play a bigger role in supporting those in need?!  

Is removing stamp duty actually a good idea?!  

 What policy is a good policy for land and house taxes?  

We’re also getting some blasts from the past as we look back at Australia’s history to inform us where our future should go…  

Like what the Menzie Government did to increase house ownership post World War 2…   

PLUS, see the image below to understand Ben’s section in “What’s Making Property News?” this week.  

Source: Seven News

(It’s one of those stories which prove EXACTLY why you should hold out for the long-term!)  

So strap in folks, we’re taking a hard look at our current property market and what NEEDS to change!!  

Free Stuff Mentioned 

Here’s some of the gold we cover… 

  • 1:50 – Grow silently, folks!  
  • 6:35 – How was The Great Australian Dream was born?  
  • 8:39 – Is Australia able to provide affordable stock anymore?  
  • 12:16 – #1: Changing the NIMBY-ism mindset 
  • 15:42 – #2: Cutting the Red Tape  
  • 20: 51 – #3: Cash incentives for state and local governments  
  • 23:45 – #4: More housing for the vulnerable  
  • 28:47 – #5: What can State Govs do to support those in need?  
  • 31:16 – #6: Discount-to-market vs. rent-to-own affordable housing 
  • 31:50 – What the Menzie Gov did to boost H___ O_____… 
  • 34:44 – #7: Using Super as…house security?!  
  • 39:23 – Ben has a controversial opinion on this!  
  • 40:28 – #8: No changes to N____ G___?!  
  • 43:09 – #9: The Argument for Removing Stamp Duty  
  • 46:00 – #10: Hello…Land Tax?!  
  • 46:39 – #11: The Government Sting on Developers  
  • 50:32 – #12: Reviewing the Build to Rent policy  
  • 53:10 – #13: Changing Lending standards… 
  • 55:10 – #14: The RBA’s role in housing (And if that should change!)  
  • 56:40 – #15: This one’s a no brainer, a big “YES!” from us  
  • 57:14 – #16: Support the concessional loans!  
  • 59:28 – What Labor thinks of this report… 

And… 

 

384 | Budget Wrap – Your Questions Answered!

By in Podcast, Q&A

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Yep. You guessed it. This week’s topic is all about…

The 2022-23 Federal Budget!!  

And today, we’re unpacking what’s in it, who the winners and losers are, and answering your burning questions about the Budget!

We’re looking at:  

(We’ve got two really great questions about this at the end of the podcast, so stick around till then!!)  

PLUS, we’re unpacking interest rates and inflation! Ensuring generational wealth! Rising cost of living! Wage growth!!

If you can’t tell folks, this one’s PACKED to the brim with information and we’re very excited to be diving into it today.  

Tune in right now for the gold!  

P.S Thank you to all our listeners for these fantastic questions – it’s been fun picking our brains.  

Got more questions? Send them to us through our Speak Pipe (Click the tab on the bottom right side of our website)  

P.P.S Questions are listed further below👇 Enjoy! 

 

Free Stuff Mentioned 

 

Here are the Questions We Answer…

Luke on Regional areas 

“What areas are considered regional?”  

Char Williams on the Expansion of the Home Guarantee Scheme for First Home Buyers 

“Does the federal budget help property investors? Also, will the expansion of the home guarantee scheme for first home buyers just continue to increase house prices due to lack of stock?”  

Dan Coletti on If Budget will help Cost of Living 

“Hey Benji and Big Brice 🤭,

Would a question here trigger a start and build course voucher 🤷🏼‍♂️🙋🏼‍♂️🙏😉?

So here goes- will these budget commitments to “help” in the cost of living, drive a false economy and therefore enacting a potential for a premature interest rate rise and amount.”

shaunjb_ on RBA Interest Rates  

“Could we expect the RBA to respond by increasing rates earlier than anticipated due to some of these announcements?”

Positive.jules on Consequences of Government Backed Schemes

“Thoughts on the potential consequences of these government backed schemes that could push first home buyers into a negative equity. A position I imagine at current times isn’t even seen as a risk to many getting into the market with low deposits and assumed continuous growth as seen in the hot market.

Love ya work boys and GO PIES! #piesflag2022 #believe”

Luke Keegan on Creating Generational Wealth  

“What can i do now to ensure my young children (1 & 3) will be able to have a home in adulthood?”  

Brendan Mutsaers on the Impacts of the 5% Government loan 

“Will all the backing of government with 5% loan or less lead to poor quality borrowers and higher defaults? Thinking seeds of sub-prime loans.” 

Danielle Shacklock in response to Brendan Mutsaers’ Question:  

“I got a 5% loan as a single mum. Brought a new SUV, all new furniture, invest in shares for my kids invest in my super and have paid 10% of my home off in under 12 months. Onto the next. I put extra into my home loan and brought smart. 

I am wanting a holiday home next. I don’t think all 5% loans are set for failure. If I default on my home with the rental crisis I risk homelessness as there’s no rentals available anywhere ever. 

I’ve already been in 12 

Months and have now kept my stamp duty waiver. 

Just because people secure these loans doesn’t automatically mean they can’t manage money. The onus is back on the person lending not the lenders. 

Interesting question.”  

 

Here’s some of the gold we cover… 

  • 3:00 – What Ben and Antonia Mercorella’s covered in their recent PICA Webinar… 
  • 5:57 – Are you avoiding taking real action?  
  • 7:52 – How Australia is faring after coming out of COVID-19… 
  • 13:40 – The Budget Headlines (Who are the winners and losers) 
  • 26:55 – The Winners in Property: The 3 homeowner guarantees and housing affordability  
  • 32:10 – Refreshing stock in the bush 
  • 35:00 – Insurance and fire and flood support 
  • 37:30 – A boost in the infrastructure and tourism industries
  • 40:15 – The Losers in Property: Why our S___ should be paying for build to rent programs!  
  • 41:42 – Q1: What areas are considered regional?  
  • 42:59 – Q2: The Expansion of the Home Guarantee Scheme  
  • 45:54 – Q3: Will the Budget help Cost of Living?  
  • 49:50 – Q4: RBA and Interest Rates 
  • 52:30 – Q5: Consequences of Government Backed Schemes 
  • 54:21 – Q6: Creating Generational Wealth 
  • 56:25 – Q7: Impacts of the 5% Government loan 

And… 

  • 1:01:53 – We love the Live Text!  
  • 1:04:02 – Top #10 suburbs threatened by….C____ E____! 

 

383 | How to create the optimal mindset for investing – Q&A

By in Podcast, Q&A

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Let’s face it…  

Money is an emotional asset folks. Especially when you realise, you’ll never have “perfect” knowledge before investing… 

But we think that shouldn’t stop people from investing!  

In fact, we think it’s something that everyone should be okay with, especially if you’ve covered your bases! That’s why in today’s episode we’re uncovering:  

  • What these bases are… 
  • How to control your emotions around money… 
  • Why people fall into an analysis paralysis… 
  • And ultimately how you can create the optimal mindset for investing!  

But that’s not all – of course – it’s Q&A DAY!! (Woohooo!)   

We’re talking all things Buyers Agents: When and why you should stick with your current agent, the difference between specialist and regular Buyers Agents… 

PLUS, we’re unpacking the upcoming generational wealth transfer that will flow from Baby Boomers… 

And explaining key factors you should understand, or have in place, BEFORE deciding to upgrade houses.     

These questions provide some great case studies, with one proving why buying properties from other family members may not actually be the best solution for everyone!   

Questions are listed further below 👇. Enjoy!  

 

Free Stuff Mentioned 

 

Here’s the questions we answer… 

Jay Sanderson on Low Stock for Properties 

“I have only just started my investment property journey and have acquired one passively geared property which I’m about to develop further. 

My current buyers advocate is trying to find additional properties for me to purchase and I have the funds approved but he is telling me that inventory is short at present. 

What would be your advice here, look for properties myself or speak to additional buyers advocates?”  

 

Leino on Buying Off-Market From Mum  

 “Hey guys, I just started listening to your podcast and have listened to the first 70 episodes in just over two weeks. I have also listened to a few of the latest ones and now have the ‘property bug’. 

Our situation – currently we have a PPR in Townsville in a nice area, which has seen some growth and we have a good amount of equity at the time of writing this. 

My wife and I have a good, combined income and a very good yearly surplus from which I want to start purchasing a few other properties. 

I recently spoke to my mother who owns two properties out right in the sunshine coast (specifically Mooloolah Valley) where the median house prices have skyrocketed. Both houses are on very large blocks (one is a hectare the other is 1 1/2 acres). 

My brother is currently renting one of them for fairly cheap and may stay for a few more years. Due to my mum’s financial circumstances, they did mention maybe selling the larger block as their super is dwindling away and they are just over the cap for a pension. 

 My question is: Would it be worth buying the property from them at possibly 200-300k under median value, with an interest only loan and servicing the debt until my brother moves out at which time, we could increase the rent to a larger amount and move towards positive gearing? 

If we buy privately off them well below median, we will start off with a massive amount of equity, and though it does have great owner occupier appeal, it probably doesn’t tick off every investment property feature that everyone talks about. 

I’m currently 40 years old and wish to retire around 60. Ideally, we would like to knock down the house and rebuild our forever home (on the block) down the track if we were to buy it. 

I acknowledge you don’t have all the info required, but if you could provide some tips or things to consider, that would be greatly appreciated. 

Sorry if something similar has been answered before. 

[PS I have booked in to speak with your team, but it isn’t for a little while due to availability]. 

Kind regards, 

Leino”  

 

Andrew on Upgrading or Buying Another House 

“Hi, we are a small family with 2 kids, and we own one property which has paid off all mortgage. 

We just wonder should we sell this property to upgrade to premium house or keep the house and buy another house to live. 

We make 130k after tax, so not sure we should focus on cash flow or captain gain property.” 

 

Winslow Tam on Optimal Mindset  

“Hi Ben, 

Hope you had a great weekend. 

Here is my question… 

Considering that investing can [be] taken quite seriously by some people, what is the optimum state of mind that individuals need to have when performing their best as an investor? 

I’m referring to things such as motivation, mindset, emotional, etc. 

I understand that investing is for the long term – somewhat like a marathon instead of a 100m sprint.  

What are some of the things that investors should do to get their state of mind prepared for investing? 

It would be great to hear your thoughts. Look forward to hearing from you. 

Regards, 

Win.” 

 

Here’s some of the gold we cover… 

  • 2:16 – Make sure you sign up for Ben and (previous podcast guest) Antonia Mercorella’s PICA Webinar on Queensland’s housing market!  
  • 4:25 – Folks, do THIS to have a great relationship  
  • 7:52 – Leave us a question here! (Did we mention you could win a FREE Start & Build course?!) 
  • 9:00 – Question 1: Low Stock for Properties 
  • 9:55 – When and why you should back your Buyers Agents  
  • 11:06 – Where should you buy when there is low property stock? 
  • 13:28 – You CAN ask your Buyers Agent these things… 
  • 18:23 – The difference between regular Buyers Agents and specialist Buyers Agents 
  • 21:33 – Question 2: Buying Off-Market From Mum 
  • 23:42 – Why we think there’s more opportunity for your mum…. 
  • 27:26 – What’s best for Leino and his brother?  
  • 30:33 – Dealing with the generational wealth transfer  
  • 37:26 – Question 3: Upgrading or Buying Another House 
  • 37:53 – The reason you should know your priorities  
  • 40:07 – How to make the invisible visible  
  • 41:45 – Folks, it comes down to ____ cost or _____ cost  
  • 44:35 – We’ve found most people choose… 
  • 47:36 – Why having a finance strategy is important BEFORE you decide!  
  • 49:08 – Question 4: Optimal Mindset 
  • 49:52 – Please accept this fact folks… 
  • 50:55 – How to create the optimal investor mindset  
  • 52:42 – Why people fall into analysis paralysis…  
  • 56:12 – Be a farmer, not a hunter!!  
  • 57:47 – Practices to control your emotions around investing!  

And… 

 

381 | Should I Continue Investing After 40?

By in Podcast, Q&A

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Do you know how to make your invisible finances….visible? Or what we mean by “the big rocks in the jar”?!  

It’s been a while since we’ve done a Q&A Day folks, and boy we’re covering a lot of ground! We’re answering the questions above, and more, including… 

Debunking the “too old to invest” mentality that many people fall into, WHY it doesn’t work… 

AND how it leads to unfortunate statics, like how

73% of all Aussie property investors stop at one property, and 91% stop at 2!

Folks, we need to change this statistic which is why we’re exploring what our question-asker (and you) can do to avoid self-limiting action.  

Bryce also lists some great examples of people who’ve only found success later in life; listen in if you need some inspiration.  

PLUS, how you can use Capital Gains Tax (CGT) to best benefit you!  

Yep. We’ve got 2 listeners interested in CGT in 2 VERY different ways… 

We’re explaining what CGT is, clarifying whether it affects borrowed money and asset appreciation AND if it’s possible to dodge THE 6-year rule!!! (Don’t know what that is? Tune in to find out 😉)  

We’re also hitting a huge pain point of Ben’s, related to why banks treat investors (over owner-occupiers) like second class citizens, and why it doesn’t make a lick of sense to us!  

PLUS we discuss the floods on Australia’s east coast and its impacts on the property market. Our thoughts go out to all the people affected by this disaster ❤️. 

Of course, since it’s a Q&A day there are tons more good stuff crammed in as well.  

All questions are listed below folks – so tune in and enjoy!  

p.s Remember to send us your tax questions BEFORE the season starts through the Speak Pipe widget found on The Property Couch website. (You’ll find it on the bottom right side!)  

p.s.s Did we also mention if we answer your question in the upcoming podcast, you’ll get a free Start & Build course? 😉  

 

Free Stuff Mentioned 

 

The Questions We Answer 

Anonymous on Regional Investing   

“Hi Ben and Bryce,

Love your show and have finally hooked hubby into listening too! Question – We are both 41 years old, have a young family, and work full time. We have a mortgage on our principal place of residence in Sydney and have used our equity to purchase 2 properties in regional NSW over the last 2 years (in the same town of 65000 people).

Given we are early 40s and are keen to continue investing in regional NSW (needs to be somewhere hubby can get to and run repairs as he is handy) are we getting too old to have over two investments? Thanks!”

Riley on Loan Security/Captial Gains Tax on Principle Place of Residence 

“G’day team, 

I’m a rent-vestor that’s looking to purchase a home for myself in the next 6-12 months. I have enough equity in my investment property that I could feasibly loan against in order to generate a deposit. 

My question relates to Capital Gains Tax. I understand that I can loan against equity to purchase another investment, however, am I able to loan against equity to purchase a home? 

Will there be any capital gain associated with using the loaned money to purchase a PPR as opposed to another investment property? 

 I’ve been led to believe this is the case but haven’t been able to substantiate the claim through my own research. Any thoughts?” 

Anonimous on Capital Gains Tax and the 6 Year Rule 

“Can you tell me more about the 6-year rule?  

I understand that if you rent out your primary residence for less than 6 years and move back into it then you don’t have to pay CGT when you sell.  

Let’s say I buy a new house and rent out my current primary residence, can I move back and forth every 5 years between the two properties to avoid CGT when I want to sell one of them? 

Sorry if you covered this in a past episode, I’m getting my way through the 400 or so episodes!”  

 Tomasz on Split Owner Occ loan to fund investment:   

“Hi Guys, 

Love the show, I wish I had found out about it from Day 1 as it would have lead me to follow the knowledge you have shared. Thanks in advance for answering this question. 

I have a $400K Owner Occ loan with $200k available for redraw. I am planning to use approximately $150k of the redraw funds to purchase an investment property. My bank allows me to easily split this $400k loan into $250k/$150k splits. Do I have to change the $150k loan to an “investment loan”? Or can it stay as an Owner Occ loan? 

I am confused as the interest for the $150K loan will be tax deductible but the security for this loan is still the house I live in. Further to this can you share any information relating to why Investment interests rates are higher than Owner Occ rates?”  

 

Here’s some of the gold we cover… 

  • 0:48 – A catch up on Ben and Bryce’s social life since last week… 
  • 3:32 – Rob (Aka. Buggerlugs the boy) and family of Frank, Tracy, Layla & Elke [Kenny] cheers for the great reviews.  
  • 12:17 – How this lesson from the meat-packing industry can apply to…property?! 
  • 15:50 – Anonymous’ Question 
  • 16:06 – How old is too old??  
  • 17:08 – Don’t fall for these negative mentalities (Be more like Julia Child, Stan Lee and these other greats!)  
  • 22:23 – How can you make the “Invisible, visible” and stop limiting your portfolio to 2 properties!  
  • 27:26 – What do we mean by “the big rocks in the jar”??  
  • 28: 35 – Riley’s Question  
  • 29:22 – What is Capital Gains Tax?  
  • 30:22 – Why ______ does NOT affect asset appreciation or capital gains!  
  • 31:10 – Purpose NOT security folks  
  • 32:10 – The rule of thumb for deductibles…  
  • 33:18 – How you can ask us (and returning podcast guest Julia Hartman) your questions BEFORE tax season!  
  • 34:46 – Anonimous’ Question 
  • 35:15 – Why can you only have 1 current primary residence?  
  • 36:54 – Tomasz’s Question  
  • 37:59 – Why do banks treat investors like second class citizens?!  
  • 42:00 – When should you change your loan?  
  • 44:22 – Why Ben was called “That mortgage broker” by a politician…  
  • 46:20 – Bryce’s house reno lifehack!  
  • 48:30 – How will the floods affect Australia’s property market?  
  • 52:15 – Our future predictions for supply and demand in flood-affected areas  
  • 54:00 – Will insurance premiums go up?  

 

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