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015 | Real Life Property Investing in Australia – Case Study

The Property Couch ep 15 Real Life Property Investing in Australia Case Study

While we’ve been sharing tons of wisdom with you over the past few weeks… 

Today we’re putting knowledge into practice with the podcast’s first ever case study from Aaron, a valued listener of The Property Couch!  

 

Aaron asks:  

“Why do some apartments that seem to tick all the boxes just don’t appreciate in price over time? 🤔 

This block at Brunswick is close to the public transport, schools, cafes and lifestyle but based on the comparable sales, the apartments have only achieved very little, if any, price gain since 2010.  

Your podcast has been saying “Location First, Property Next”, but I’m confused with this property.  

Why is this place so cheap? If it’s because of the property itself, does it mean the location is not always the biggest factor?  

And finally, should investors seriously consider properties like this or stay clear?” 

 

We’re unpacking each question and running through the 3 crucial filters you need to be applying to every property… 

This includes explaining how this property might appear to tick all the boxes, but why it’s actually scoring none! If you are interested in investing in apartments, check out the episode where we talked about investing in studio or 1BR apartments.

We’ll also be sharing who the #1 person you must impress as a property investor is, and what shine over size means!  

So strap in folks, we’re doing a deep dive into this multi-layered question!   

 

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Here’s some of the gold we cover…

  • 2:15 – Aaron’s Question  
  • 4:50 – Developers try to sell you on THIS!   
  • 6:20 – How they price these assets   
  • 8:10 – The 3 filters you should apply to investment grade properties  
  • 8:40 – This was the biggest downfall! 
  • 10:51 – What we mean by shine over size  
  • 13:18 – How Aussie culture can affect property growth 
  • 14:50 – “Why is the property so cheap?”  
  • 15:40 – What does Acceptance of Density mean??  
  • 17:04 – How to determine if something has owner-occupier appeal?  
  • 18:07 – The #1 person you must impress as a property investor!  
  • 19:10 – Ben’s “Mainstream Music Appeal” analogy  
  • 20:20 – Why we prefer ____ over ____ properties!  
  • 22:10 – This is why you should invest in a Buyers Agent  
  • 23:58 – Data from across the market… 
  • 26:00 – Check out Ben’s interview on ABC!  

 

Should You Be A Borderless Investor?

 

There are many pros and cons in investing in other states across Australia but more often than not, investors find this a bit daunting. Well, to be fair, there are a lot of things to be cautious about such as unfamiliar territory, different state regulations and more. But in this video, Bryce explains why you should consider being a borderless investor. Here’s a snippet of the article:

So I guess the question for property investors are, should you be a borderless investor and what does that actually mean? More than ever, I’m talking to clients who are keen to not invest in their own backyard and actually look into other states for opportunities to buy because one of the biggest question that I’m always asked, in my role in the show (Location Location Location Australia) and my daily role as a buyers agent, is how is the market doing? It’s kind of a strange question because it’s probably a logical one that people want to know about. But the question is, are you buying? Are you selling? Are you investing? Are you researching?

Watch the video to learn more.

 

Click here to download the Core Logic report data mentioned in the video: Get access now.

 

 

Bryce Holdaway - Quote of the Day - The Property CouchBryce Holdaway – Partner, Property Advisor & Buyers Agent

As co-host of The Property Couch, Bryce Holdaway is also a partner at Empower Wealth and Co-Host of Relocation Relocation Australia and Location Location Location Australia on Foxtel’s Lifestyle Channel. A qualified Buyers Agent and Financial Planner, Bryce holds a Bachelor of Commerce (Accounting), Real Estate Agent License and Diploma in Financial Services (Financial Planning).

 

010 | Tax Depreciation

If you were to ask an investor if they wanted to save $149 per week on a property, we can guarantee you that no one would say no… 

BUT that’s exactly what too many folks are doing when they don’t use tax depreciation right! (Check out the case studies at the bottom if you don’t believe this number…)  

Today we’re excited to be discussing this topic with the help of our good friend and first-ever guest to the show: Bradley Beer!  

As the Managing Director of BMT Quantity Surveyors (experts at tax depreciation), Brad explains exactly what tax depreciation is and how and when you can use it!   

Buying a property for its depreciation, however, should NEVER be your main reason for investing!  

Instead, we unpack the important depreciation factors you should be looking at… 

Like why 1985 and 1987 are very important years when it comes to tax depreciation. 

We’ll also be explaining what quantity surveyors do and hearing some true stories from Bryce and Ben!  

So tune in now for the gold on tax depreciation! (Yes, we say tax depreciation way too much in the episode too 😉)  

 

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    • Brad’s case studies that he has prepared for the podcast can be accessed here! The first is a $600,000 – $700,000 period home with a rental income of $22,880 per annum and the second is a $400,000 – $500,000 older villa with a rental income of $21,060 per annum.
    • Interested in using BMT? Download the BMT Tax Depreciation Application Form here.

 

Here’s some of the gold we cover…

  • 0:50 – Meet Brad Beer!  
  • 1:26 – What’s the benefit of a tax depreciation schedule? 
  • 2:00 – How Bryce’s friend benefited from one!  
  • 2:45 – Did you know you can get cash back?  
  • 4:00 – What do Quantity Surveyors do?  
  • 4:38 – Ben’s Franking Credit analogy  
  • 6:07 – WHY you should use tax depreciation  
  • 7:30 – This is why education is important!  
  • 8:09 – Why are 1985 and 1987 important dates?!  
  • 9:54 – So when do you get depreciation in a period home  
  • 10:55 – The challenge with depreciation is…   
  • 11:40 – Improving YOUR net yield  
  • 12:40 – The process to determine your tax depreciation!  
  • 14:50 – Renovation and depreciation  
  • 16:00 – The lump sum scrapping approach 
  • 17:49 – Why you shouldn’t do tax depreciation after renovations   
  • 18:20 – Learn from Ben’s story!  
  • 19:40 – WHY it’s worth it to use BMT  
  • 20:15 – Some gold tax depreciation case studies!  

 

008 | Investment Stock vs. Investment Grade

Well folks, after eight long weeks of waiting, we’ve FINALLY reached our most anticipated topic yet…investment stock vs. investment grade properties! 

Did you know…there’s a higher percentage of investors who’ve sold their property for less than their original purchase price than owner-occupied properties? 💸 

Yep, that’s sadly true. That’s why in today’s episode, we’re diving deep into what investment stock actually is, how it differs from investment-grade properties… 

...and how to know if YOU’RE being spruiked into buying stock!  

We’re also examining the science behind investment grade properties, why depreciation shouldn’t be the end-all, and how becoming a borderless investor can benefit you!! 

PLUS, guess what milestone we’ve just achieved…

IMG_20150417_091810

A HUGE thank you to all our listeners and those who have left us a review! We love hearing from you so please keep those reviews and questions coming in!

 

Free Stuff Mentioned  

Just starting your property investing journey?

Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away. 






 

Here’s some of the gold we cover…

  • 1:19 – What are some concerns for investors today? 
  • 2:10 – What is Investor Stock? 
  • 3:00 – Why Investor Stock can cause losses 
  • 4:50 – How to tell if your advisor has your best interests at heart 
  • 6:00 – The Enthusiastic Amateur (BE WARNED!)  
  • 7:43 – How to know you’re not being sold Investment Stock! 
  • 8:35 – Don’t invest in property for THESE perks! 
  • 9:06 – Why ________ shouldn’t be the end-all 
  • 10:07 – The science behind Investment Grade properties! 
  • 11:27 – How WE look for properties 
  • 14:00 – Why FOMO is an indicator NOT to buy! 
  • 16:33 – How to be a borderless investor  
  • 17:29 – Why investing is all about the ____!  
  • 18:22 – How you can stay educated on investing 
  • 19:20 – We’ve hit WHAT milestone?! 

 

005 | Four Pillars of Mastery – Asset Selection

We’re going to let you in on a secret for selecting great assets… 

Look at the big picture BEFORE the property!  

That’s right folks! We’ll be discussing this (and more) as part of the third episode – which focuses on A for Asset Selection in our ABCD Property Investment Formula.  

And while most think they score an A+ in this area, we look at a couple of pitfalls that can cause people to score an F!  

Bryce discusses why you should avoid being sold on “the bling!” (Think shiny taps and sparkling stainless steel…yep, he definitely fell for that one 😉)  

…and instead, what other areas you should be focusing on when selecting an asset!

Is investing in new or old properties better? And how important is location and land value?  

On top of that, we look at the big question on everyone’s mind: Who should you be taking property investing advice from anyway??  

Tune in for all this and more in today’s episode!  

 ✨ Plus don’t miss Ben’s golden return ratio which could completely change the way you select your assets! ✨ 

 

Free Stuff Mentioned  

Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away. 






  

Here’s some of the gold we cover…

  • 1:40 – The Big Picture of Asset Selection 
  • 2:33 – Folks, property is an emotional asset!! 
  • 3:00 – What is the growth story?  
  • 4:12 – A bit of gold for our listeners… 
  • 4:45 – Why are medium and high-density areas different to this golden rule? 
  • 6:00 – Why is asset location so important?  
  • 7:10 – Ben’s “ugly duckling to swan” property story! 
  • 8:15 – Using the telescope vs. microscope approach  
  • 9:25 – Bryce’s first property: Don’t be sold on the bling too!  
  • 10:10 – What is the buyer’s quadrant?  
  • 11:28 – First-time property investors – don’t be seduced by ____!  
  • 13:31 – How new properties are sold  
  • 15:15 – The generational difference: Apartments vs. houses 
  • 16:30 – It’s NOT about land content, it’s about…   
  • 18:00 – A good rule of thumb for land-to-asset ratio! 
  • 19:30 – WHO should you be taking advice from when buying an investment property? 
  • 22:00 – Send us your questions!   

 

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