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Episode 286 | Best Case & Worst Case For Property, PLUS what’s making Property News?

You’ve probably heard Commbank’s “warning” that property prices could drop by “a third” as a result of the unemployment levels due to COVID-19…

You’ve probably ONLY seen this scary number come out of their March Quarter 2020 Trading Update, though right?

Probably because it’s the ONLY number being reported in the headlines!!!

But what’s really interesting is there’s a whole lot of OTHER scenarios that the Commonwealth Bank of Australia also modeled… and… guess what? Yep, you’re only getting the clickbait answer!

So, in today’s Q&A, we’re going to let you in The Best & The Worst-Case scenarios, and what Commbank actually believes is most likely to happen with property prices, according todata.

After that, we’re going through a fair few questions that have also come in over the last two weeks!

Plus, Ben’s also introduced a BRAND-NEW SEGMENT — “What’s Making Property News” — and you can just imagine how excited he is, right?!

 

We tick off quite a few boxes in this episode folks, so definitely tune in if you’re keen to hear what we can likely expect between now and 2022, and also get some current property, finance, money management and COVID-19answers!

 

Free Stuff

Or fill in the form below and we’ll send you the free PDF on COVID19 Property Risk Regions:

Free resources: COVID19 Risky Regions

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More Free Stuff From Ben’s Segment

 

The Questions

Question about withdrawing superannuation from Sabrina
Good evening. I really admire you both. I listen to your podcasts. I might don’t get chance to listen to every single one, but I love you guys and try to listen whenever I can. I need your advice please.

My situation is, I have some buffer savings in my offset account around $25,000 and me and my husband both have jobs in this situation. But I am working less hours because I am not sending my son to childcare. The monthly earnings will keep us going but very tight and I don’t know when I can send my son to childcare again.

So, my question is am I eligible to withdraw $10,000 superannuation? Because my hours has been reduced significantly (my company is giving me enough hours but I have elected not to work like before because of my son) so can I apply for super and what are the pros and cons if I withdraw super? I am just scared if I will run out of money and I didn’t apply for it.

 

Questions about cross-colleterialisation and accessing equity from Danielle
Hi Bryce, I have just started reading your book I bought last year “The Armchair Guide to Property Investing”. I find it quite interesting and a few similar matters are bought up like in the barefoot investor. I have read a few times not to have your loans with one bank so my first question is how do you use your equity you have with that bank to purchase another investment and get the loan with another bank? I can’t seem to find much information about it and do not understand it, but my partner has tried to do it and his broker seemed to think it was too hard, but reading it can be done? We have 6 properties between us. I have 2 and Brendon, my partner, has 4. We want to invest more — my aim was a property every two years until we reach the time, we want a new house for ourselves to live in; in the country or a shack.

My second question: I have read a lot about don’t cross-collaterise your loans. I felt like I did this and don’t see how you don’t do it if you’re using your property as security and the equity in it? Then yesterday I read an article, and it says if you have standalone loans for each property that isn’t cross collaterised — it’s only when you have all your properties and loans as one? Is this correct?

My third question is: my partner is about to pay off his first house and own it; the one we currently reside in. He wants to know, if he pays it off, does he get the deed to his house or not because he has used it as security with his other three investments?

 

Question about the planning process from Mazen
I’m up to Ep 120 of The Property Couch podcast and just read chapter 1 of your book. You have turned my mindset about property upside down, in a positive way! One thing I need to get my head around before moving on to chapter 2 is to actually try work out a monetary value of my future goals so that I can put a plan together to achieve them in the timeframe. I’m a bit unsure about where to start and what to consider when calculating how much money I will need (e.g. questions running through my mind… I want to travel “this” often and so I need “this” much money, I want to live close to the beach by “this” age so how much would I need for “this”, etc) Am I overthinking it? Thanks and look forward to hearing from you!

 

Question about LMI vs Renting from Hayley Robinson
What do you think is better? Paying LMI or rent when getting ready for buying a first home?

 

Question about Procrastination and Choosing the “right” debit/credit cars from Aaron
I’ve been trying to get all our debts/credit cards sorted before getting property investment advice, and feel like I’m just procrastinating now…

 

Question about Inflation and Passive Income Target from Grant
How much in today’s money do you need in assets to get $2k passive income?

 

And of course..

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.

 

 

 

 

Free Report: COVID-19 Caused Risky Property Regions

The media has had a field day recently… A Pandemic, Unemployment Rate expected to Rise, the World Economy slowing down and more. Naturally, this only mean one thing:

AUSTRALIAN HOUSE PRICE CRASH!!

Did that get your attention? Well, that’s what they are trying to do.

We’ve seen this same headline being used every time the economy showed some signs of slowing down and the number of times when the Australia Property Market as a whole actually crashed? None.

It’s understandable though. Property is one of the hottest Australian BBQ topic and the Great Australian Dream is part of our aspirations. So it makes sense why people are worried about it. But this time in Episode 286, Jeremy Sheppard, Director of Select Residential Property and Founder of DSR Data came on the show to share some of the data insights into some of the key metrics and highlights areas most likely to be affected by COVID-19. The report also highlights a new era of opportunity for cash-flow positive property investors never been seen before.

 

Just fill in the form below and we’ll email you the COVID-19 Caused Risky Property Regions report right away!

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Episode 285 | “Catching a Falling Knife” Is investing in Commercial Real Estate a good idea right now? – Chat with Scott O’Neill

Is the “home office” the future office? Coronavirus has changed the face of many businesses – entire companies are now working from home, retail shops have switched to online selling and others, like cafés and restaurants, have simply “shut up shop”, either temporarily as they wait for the storm to pass, or permanently.

So it begs the question… is investing in COMMERCIAL property still a good idea?

Well, returning to the Couch is Scott O’Neill, Founder and Director of Rethink Investing, a buyers agency that specialises in both commercial and residential real estate! Yep, we first heard from him back on Episode 230 | From Residential to Commercial Investing: How this guy quit his Day Job at 28 … and  today we’re in for a very special treat as Scott walks us through the key themes unfolding in the office, retail and industrial space… PLUS, he gives us his expert opinion on the “new normal” in commercial real estate, so our folks interested in investing in commercial property know what to aim for, what to avoid and how to find the right commercial properties!

Oh, and Scott even manages to sprinkle in a few nuggets of gold on residential real estate too!

 

This is a fascinating and knowledge-backed episode that really sinks in a few key messages – and not just for our commercial property investors, but also for the rest of us who simply want to navigate this coronavirus and learn investing best-practices!

 

Free Stuff

What we talk about in today’s episode

 

Episode 257 | The Exception To The Rule When It Comes To Off The Plan Properties & House And Land Packages

Recently, ABC’s podcast The Money ran a very poignant episode on the financial risks of unregulated property investment advice (which we highly recommend you check out – details below folks)… which revealed the pitfalls of buying Off The Plan properties and getting snagged on the end of “one-stop-shop” spruiker seminars.

As well as interviewing two unlucky folks who learnt about investing in Off The Plan in the worst way possible, the episode also features a property ”sales person” … and the look from the other side… is… well… let’s just say we’ve got something to say about it!

‘Cos as you know folks, we hold a VERY strong view on these types of investments — and we’ve been very vocal about this since we first started croaking out this podcast — so why then … would we have an “an exception to the rule”???

Well… that’s where today’s episode comes in! ‘cos if you’re going to go there….. (and many of you STILL write to us about investing in Off the Plan properties AND House and Land packages.… then we want to make sure you stay FULLY informed.

AND we’re also going through a Q&A on this tackle this exact topic, so you might get the answer you happen to be pondering right now!

 

CLICK HERE to Listen to ABC’s The Money podcast episode — The financial risks of unregulated property investment advice

 

 

Other Free Resources Mentioned In This Episode

 

The Questions…

Question from Brittany

Hey guys! Absolutely love your podcast. Wanted to share something I found. The offer is – buy an off the plan apartment, and get a free Mazda 2. Reeks of a buyer beware scam! Is this even legal? I have never seen anything quite like it and had to share it with you guys.

 

Question from Alana

I have been listening to your podcast, I have invested in a house and land package in Tarniet, I will be owner occupier . I will be investing with a friend, therefore half the debt will be mine we will be investing around 450,000 total. There are proposed schools next door and a shopping mall and train station going in. Everything in your podcast leads to don’t buy a house and land package… have I stuffed this up already?

 

Question from Juan — Is It ALWAYS A No To Buy Off The Plan?

Hi guys, First of all – thanks for your great material! It’s great, ‘specially for someone like me who is new to Australia, understanding the way everything works here is gold. I have heard most of your podcasts and also done some research online and I wanted to ask a question around Off-the-plan investments that I still can’t understand. Everywhere people say it’s a big NO-NO. I understand the risks involved (delays, not seeing the finished product beforehand etc) but my wife and I have found an OTP property in a suburb we like (Bentleigh, within the Mckinnon School zone) and we think it’s a good place to live. The developer has done at least 3 different developments in the area all of which we like the finishes and have built it in perfect timing. I wanted to ask why would this be considered a really poor investment? Are OTP properties definitely a NO? I understand the case of Docklands and closer to the city suburbs where you had thousands of developments which made the price go down but in Bentleigh I don’t think this is the case. I have subscribed to locationscore.com.au and the score is relatively well considering that I will live in this property and it’s within my budget. I just wanted to get a sense of your thoughts around this as I am a true follower of your words of wisdom. Hopefully you have some words for me. Thanks in advance and keep up the excellent work of empowering people like me with information. Juan

 

Question from Phoebe

Hi Property Couch,

I have a question for you. My partner and I recently signed a contract for a 2 bedroom 2 bathroom apartment in Camp Hill, Brisbane. It is a brand new apartment building (small block – only 7 apartments). We plan on living in the apartment (for now but would like to rent it in the future – roughly 3-5 years time). The developer originally wanted $569k, dropped it down to $539k and we signed a contract for $529K. When applying for a home loan, the property was valued at the property $29,000 less than the purchase price. Their report considered market direction, volatility and segment conditions to be of medium to high risk. This is very concerning for us as first home buyers. We don’t know whether the banks are just being overly cautious. What are your thoughts on this? I know you mentioned in your very first podcast, if you are buying new, you are most likely paying too much. We think the apartment is really good quality and ticks a lot of our boxes. Help! Thanks for your time.

 

 

 

 

 

Episode 202 | We warned you to Prepare for Winter… Did You?

Over 2 ½ years ago, waaay back on Episode 66, we warned you that Winter Was Coming…

The question is folks… did you prepare?

We really hope you did. Because if you caught ABC’s three-part 7:30 Report this week or you read the OECD Housing Report that came out on Monday, then you’ll know that the Australian housing market isn’t the flavour of the month at the moment.

We’ve all seen that the property market come off its peak, and this, combined with the credit crunch following APRA’s lending restrictions and the Banking Royal Commission, as well as the proposed changes to Negative Gearing and Capital Gains Tax has spread a ripple right across market sentiment.

In other words, you could say… Winter is here.

So, today we’re diving into what’s unfolding with housing prices and what we’re likely to see happen in the property market from here. To help with this, we’re revisiting what we discussed 2 ½ years ago — Episode 066 | Winter is coming and the air will be colder up high.

And folks, the similarities between what we said then to what we’re seeing now just might shock you! Those who acted early and pulled out the umbrella won’t be surprised.

BUT the real question is: what does all this mean for you and the future of investing in property?

Or do you simply want a straight answer to “What the heck is going on in the property market right now?”

We’ve got you covered.

 

Here’s the wild ride you’re in for…

 

The REPORTS and Media mentioned…

OECD House Price Report

ABC’s 7:30 Report – Latest figures from CoreLogic

And ABC’s 7:30 three-part video series…

House of Cards Part 1

House of Cards Part 2

House of Cards Part 3

 

P.S. It ALWAYS comes down to the fundamentals!!!

DOWNLOAD our Free Binge Guide Here – The First 20 Episodes

This 80-odd page document is the vault containing all the foundational tips and insights you need to be a successful investor.
Want a Free Copy of The Golden Highlights? You can get it here.

 

 

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