RBA Cash Rate June 2022: Onwards & Upwards: How high will interest rates go?

By The Property Couch June 7, 2022 in Podcast, RBA Announcement

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The RBA has released its June update and boy is there a lot going on!

Not only do we have a new Federal Government behind the wheel, but after lifting interest rates for the first time in 11.5 years in its May update, this month saw the RBA lift cash rates by a massive 50 basis points, bringing the cash rate to 0.85% 😲

A certain sector within the property market is also facing a new threat…how will it impact the wider industry if it crumbles under pressure?

Tune in to this episode where Ben explains this challenge and unpacks these three key themes for this month’s economic update:

The persisting global inflation challenges
We have a new Federal Government with their hands on the economic wheel – the big question is, how well can they drive?
The RBA is at it again increasing the cash rate – and they’re not done yet…

Plus, Ben also includes his latest news and commentary on…

👉 Russia and the Global Oil Story: How will this tale end?
👉 China faces the largest fall in Industrial Production in 32 years
👉 The persisting worldwide inflation challenges
👉 How good is the Australian economy compared to other global players?
👉 The RBA’s decision: How soon can we expect it to rise again?!
👉 What challenges have the new Federal Government inherited?
👉 The New Build Crisis: Will it cause the wider market to slide under pressure?
👉 CoreLogic’s Monthly Dwelling Princes Index – June 2022
👉 Overall Property Market Outlook for mid-2022

And much more!

Additional free resources:

🔥 Episode 73 | Building a property portfolio in a tough market – Chat with Damian Collins
🔥 Episode 76 | Building a property portfolio after the boom – Chat with Veronica Morgan
🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

393 | The Top 3 Influences on Investing Success – Chat with Scott Phillips

By The Property Couch June 2, 2022 in Podcast

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Have you ever wondered what the BIGGEST influences are on an investor’s success?!

Is it passion, personality, time, experience, learnt market timing or even luck?! Or are you just born with a “business brain”?!

Well folks, our very special guest today can actually narrow an investor’s success down to just 3 things!!

And if you’ve got that covered, well according to him…you’re basically going for gold!

This awesome guest – Scott Phillips – is the Chief Investment Officer at the Motley Fool Australia (Tune in to 10:08 for a fun story on how he landed his first position there!) and runs the Motley Fool Share Advisor and Everlasting Income services. He is also a fellow podcast hoster, co-presenting one of Australia’s top business podcasts: the Motley Fool Podcast!!

Today he’s dispelling so much timeless wisdom from how to tell if a business is “Investment-grade” to his golden rules for investing.

He and Ben will also discuss the differences, pros and cons when investing in shares and property, and we’ll be peeling back the layers of his money story!

So if you’re ready to learn the ultimate, simple wisdom that leads to investing success, press play now!

p.s Make sure to tune into “What’s Making Property News” too. The NSW Greens Party are introducing some seriously radical changes to its Tenancy laws that will have negative effects on Rent Control, Evictions and Termination of Rental Agreements. This has the potential to implode the Residential Property market, hurting its tenants more and forcing more people to rely on Government assistance.

If you own an investment property in NSW – we strongly urge you to contact your local member of parliament to express your concerns about the unintended consequence of this change.

To find your local member click here.

Free Stuff Mentioned…

Have a look at the Vanguard Index Chart that Scott mentions to see the power of compounding!
Sign up to watch PICA’s Webinar on Securing Finance in a Changing Economic Environment (Members can also watch the Replay!)
Looking for a new book? Check out “The 5 Second Rule: Transform your Life, Work, and Confidence with Everyday Courage” by Mel Robbins (Bryce’s Lifehack)
To take action against the radical NSW Greens Bill, please contact your local member of parliament and express your concerns over its long-term market impacts. We must act now!

Here’s some of the gold we cover…

0:42 – Ben’s joined the COVID Club 😮
3:55 – Check out PICA’s Webinar on Securing Finance in a Changing Economic Environment!
5:00 – “Success is a lousy teacher…”
6:47 – Meet Scott Phillips!
8:17 – The origins of the “Fool”
10:08 – How a Facebook article led Scott to become a Motley Fool!
13:35 – Scott’s backstory: From tobacco tin budgeting to the best advice for a high school student
17:26 – Why he won the “Ovarian Lottery”
20:11 – His firsthand experience with Spruikers…
23:04 – The first 2 investing mistakes Scott made (& the silver lining in it!)
25:11 – His journey to becoming an investing guru!
26:38 – Scott’s easy yet GOLDEN rules for investing
32:17 – It all boils down to B___ M____ and T____!
34:23 – How to get your kids in the market
35:55 – Shares & Property: Let’s compare the Numbers and Risks!
41:09 – The TOP 3 things that’ll maximise your investment returns
43:25 – A sneak peek into Scott’s property portfolio
46:07 – The Pros and Cons of Shares and Property
47:53 – The 5 reasons a business is “Investment-grade”
55:22 – The Best Advice for an Investor: Investing is about B___ not about…
57:27 – Why Scott KEPT investing in shares through COVID-19
1:03:45 – Is Crypto worth investing in?

And…

1:07:29 – Let’s Recap!
1:10:05 – Some of Scott’s Twitter GOLD
1:12:30 – The 5 Second Rule: How to move from thinking to doing
1:16:55 – Folks…this is terrible policy for NSW’s Residential Property market. Report your concerns to your local parliament members now!

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

By The Property Couch May 19, 2022 in Podcast

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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…

1:07:37 – 2 election lifehacks in 1 episode?!
1:09:40 – Let’s just take a moment to look at the Big Picture folks!
1:10:38 – A summary of Matt Comyn, CEO of Commonwealth Bank’s interview with the Australian Financial Review

RBA Cash Rate May 2022: Cash Rate to 0.35% – Find out what’s next here!

By The Property Couch May 3, 2022 in Podcast, RBA Announcement

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As we speed through the first half of 2022, we’re back with another announcement from the Reserve Bank of Australia!

The RBA’s May update is not only packed with global economic news from the ongoing war in Ukraine to China’s hard lockdowns but sees the RBA raise interest rates for the first time in 11.5 years.

Tune in now to hear Ben’s evaluation of the update and his predictions for the future!

Here are our three other key themes for this month’s economic

Global inflation,
The impacts of global interest rates, and
What the RBA did today…

Plus, Ben also includes his latest news and commentary on…

The World Bank and IMF cuts 2022 Growth Outlook
How Russia’s invasion of Ukraine is impacting the global economy
China’s COVID crisis: will they relax their policies?
The macro drivers behind global inflation: How long will it last?
Why the RBA has decided to hike interest rates…
The US’s mixed economic report
Low unemployment levels, falling consumer sentiment and the lack of wage growth data in Australia.
CoreLogic’s Home Value Index – May 2022
And heaps more!

For more information, please visit: http://thepropertycouch.com.au

386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster – Chat with Julia Hartman

By The Property Couch April 14, 2022 in Free Resources, Podcast

To celebrate the beginning of the festive (tax) season, we’re welcoming back a special guest….

It’s the only and only…Julia Hartman!!!!

And this week she’s sharing with us how to repair or rebuild your house if it was damaged by a natural disaster (Like a fire or flood) …

Without paying tax through your eyeballs!!!

She’ll cover all bases from why it’s paramount that you move back into your house as soon as it’s been fixed (trust us, it’ll save you a heck of a lot of tax…listen in to find out what we mean!)

To what you should do if you’ve been living overseas when your property was damaged!

But we’re not just covering that of course, Julia’s got far too much knowledge just waiting to be shared!

We’re also looking at all the recent changes to tax rates and how you can be prepared for them this tax season…

Plus – we unpack all things Duplex like…

What’s the optimal way to create a battle-axe duplex (and not lose any or all of your benefits to GST or CGT!!),

Why you should keep records of everything from lawnmower fuel to maintenance costs,

And basically, in the wise words of Bryce, how you can “Make apple pie with apples” folks!!

But we’ll give you a little spoiler first…before embarking on EITHER of these renovations, it’s critical that you speak to a tax advisor who specialises in property.

We can NOT stress this enough – there are so many fine details in the process and rather than giving yourself a headache, or worse, kicking yourself later for paying unnecessary tax, it’s best to seek advice first!!

Now that we’ve got that triple highlighted, tune in to today’s episode folks! It can seriously save you a lot of stress later down the track.