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Ep 212 | Stuart Wemyss – The Common Sense Approach to Superannuation, Royal Commission and Negative Gearing

Our Summer Series is all about hearing from the heavy hitters in property investing so you can score the best investment tips in record time…

… and today is no different!

Joining us for his 3rd appearance on the Couch is Stuart Wemyss, Founder of ProSolution, an independent financial and mortgage broking firm! You might recognise his voice from Episode 81 | Does investing for the long term actually matter? and Episode 172 | The 5 Rules for Mastering the Game of Building Wealth where Stuart discussed the foundational rules of mastering the game of building wealth as outlined in his most recent book (and now best-seller), Investopoly.

In a nutshell: Stuart is a chartered accountant, independent financial advisor and mortgage broker with over 20 years’ experience.

And he’s here with the commonsense approach to help filter out the media noise so you can have a more level-headed approach in the current property and financial landscape!

 

Here’s The Common Sense Approach…

 

Missed earlier episodes in The Summer Series?

 

P.S. Don’t forget,

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.

 

 

Our Summer Series 2018/19!

For our Summer Series this time, we’re including everyone in our community; both experts of the industry as well as our fellow listeners!
Yes, it’s never been done before and what’s more, we are producing it TWICE A WEEK!

No doubt it’s a bit tricky but it’s all worth it. The wisdom and inspiration from our guests are exceptional.

You do not want to miss this series folks! 

So to help you catch up, here’s a link of all our Summer Series episode. Enjoy!

 

 

Episode 199 | Q & A – Future Proofing your Portfolio in a Changing Market

Folks, with State Election around the corner and the Federal Election less than a year away, it’s time to future-proof your portfolio.

The market has changed and will continue to change. We’ve also got some challenges in the Macro landscape as well — lending regulations, potential changes to negative gearing and interest rate rises, just to name a few.

So you might be asking yourself, “How is it still possible to build a property portfolio and earn $2K per week in passive income with all of this other stuff happening?”

And you’ve got a good point. There IS a reason to be concerned, but this does NOT mean you have to abandon ship altogether. Far from it.

So in today’s episode — before our Surprise Superstar Guest joins us next week for our 200TH EPISODE!! — we’re going to answer some of your questions about how to do exactly this.

 

This is just a few of the things we’re discussing:

 

Before we get to the questions, Ben is coming to all of you who are based in Perth! As the Chair of PICA of course. Details below:

When: 6:30 pm – 9:00 pm AWST, Tuesday, 4 December 2018
Where: Queens Building, Lecture Room, Level 1, 97 William Street, Perth, WA
Cost: FREE!

Link to secure your ticket: Reserve your Seat here

 

And if you’re after the video that Bryce mentions in today’s show to Know Your Number… Watch it below or click here to watch it now.


 

Finally, the questions we’re answering today…

Question from Mirella:

When talking about earning $2,000 per week in passive income is this measured before or after outgoings; eg. rates, land tax, etc.?

 

Question from James:

Trying to build a portfolio whilst the future of interest rates and a change in government and a change to negative gearing could potentially impact the market. How should one approach 2019?

 

Question about market sentiment/right time to buy from Kirthika:

Thanks for this session guys! Quick Q… there’s a lot of media activity discussing the impending drop in property prices over the next few years. As a result, my husband and I are worried about investing now? in the event we could buy for cheaper in a year! What are your thoughts?

 

Question about increasing cash flow and paying off debt from Nipper:

I feel confident with how to select investment grade properties. But I’m not so sure on how to hold them then get to the cashflow stage. Do you propose changing loans to P&I or selling down some properties to then pay off the debt of others, or something else?

 

Question about having no equity from Dan:

You mention using equity. If you don’t yet have access to equity… do you have any tips to get started?

 

Question about realising equity for cash flow purposes from Kosta

Do you ever recommend using some equity release to pay the monthly repayments to improve cash-flow?

 

 

 

Episode 196 | Q & A – Negative Gearing Changes – Should I Still Invest in Property?

“Labor risks $12bn housing hit over ending negative gearing” — if you’re like us folks… this headline has us all concerned!!

And the concern didn’t stop at the headline.

As we read on, the full news article, published by The Australian on the weekend, highlighted that the $32 billion plan to end negative gearing would — quote — lead to a fall in new housing construction of up to 42,000 dwellings over five years and 32,000 fewer jobs across the country, according to independent modelling — end quote.

Yep… that’s a drop in a whole lot of new housing construction (ie. supply) AND just a-bit-more-than-a-few losses (up to 32,000) in jobs!!

Folks… this is crazy stuff.

And those stats aren’t the only ones coming out of recent independent research digging into the numbers of what’s likely to happen if negative gearing’s ditched.

So, today we’re looking at a few of the worst-case scenarios from two different reports (the links to both of these are further down in the show notes) and unpacking — with both a short term and long term view — how this change to negative gearing might affect the property market and those investing in it.

But negative gearing changes — and the possible consequences on housing prices and for first home buyers — isn’t the only question we’re answering today! We’ve got plenty of gold on how to time your exist strategy, retiring debt and the right asset to invest in!

 

Oh, and if you’d like the Geospatial Heat Notes — the heat map that shows the Compounding Annual Growth in Median Value for Houses from 1974 till the end of 2017 that is sourced from the Valuer General data —  you can get them here.

 

Back to today’s Q’s…

Question about Negative Gearing Changes from Shadi:
Hey Bryce and Ben. Thank you for all the information and for all the podcasts you provide. Apologies in advance if this question has been answered in previous episodes. I’ve been binging myself since episode 1 a few months ago, and am not quite up to date yet. I just have a question specifically about the abolishment of negative gearing and the impact it will have on first time investors. I’ve been looking to invest since listening to your podcast, and am interested to hear how this will affect my first purchase — whether or not it will just be a short term problem that effects cash flow or if it will have a long term effect, especially when entering the market.

 

Question about Your Exit Strategy from Anne-Marie:
Hi guys, this is Anne-Marie in Victoria. I’m 56 and my husband is 51. I started listening to you many years ago after we had our 7 properties. Our last property was 3 years ago. There all on fixed term interest only, which makes no offset available to them. And we’ve paid off our home, which is worth 1.1 million (1 of the 7 properties). It takes us $13,000 a year to hold all the properties, we just put our tax in, which is amazing. So property has done really well for us, and the mortgage we have on all of them is about 2.5 million, with domain value being low sitting at $3.9 mill, and high $5.2 with middle there all about 4.6 million. I want to start going into doing less hours at work — I’d like to retire on a passive income in maybe 4 years’ time. How do you transition to get the passive income we’ll need for retirement without too much of a tax liability? I paid about $10K in tax this year and I really don’t want to be paying a lot of tax while I’m getting to this point. Can you give me any pointers? And I can’t have an offset account as I said. I’d like some advice on this.

 

Question about the Right Asset for a First Home Buyer from Carrie:
I have a question about the best type of asset you should invest in. I’m looking to buy my first property, which I’ll live in initially. I have a budget of $750K. I’ve been looking at 70s and 80s free standing villa units in small blocks of 12 – 6 in Melbourne’s east. This puts me in middle ring suburbs around 20km from the city, with a land size of 350sqm. It’s a good balance between decent landmass without being out in the sticks. Alternatively, I could by a 2bdrm apt in an older, low density block — the type with only 2 or 3 stories closer to the CBD. Are either of these good investments? And which of the two is better? Or is there anything else I should look into. Love your work guys, keep bringing out those podcasts! Thank you

 

 

The Articles Ben mentions:

The Australian Article — Labor risks $12bn housing hit over ending negative gearing

Housing Industry Association (HIA) — Media Release

 

Significant Urban Area (SUA) Tracker Report | October 2018

Spring is definitely in the air and so is hay fever. But are Australia’s Significant Urban Areas affected by it as well?

As mentioned in Episode 193, we are sharing LocationScore’s SUA Tracker Report for October 2018!

Fill in the form below to download the Report now to get access to it now.

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What’s in this SUA Tracker Report?

In this month’s SUA Tracker, we see Ballarat on its 6 consecutive upward trend to a LocationScore of 70. But it’s still slightly behind Hobart which is holding its high score of 74. Meanwhile, the cities of Sydney, Melbourne, Brisbane and Adelaide are still holding their Location Score in the 60s.

What’s also interesting is the rise of Mackay. 3 years ago it had a very low score of 36. Now the LocationScore is up to a very healthy 60. But will it keep going or start levelling out?

But of course, we’re not just focusing on the positives here cause not all of the markets are on an upward trend. Wollongong’s LocationScore for example has slid around 10% in the last year and there are a couple of SUAs that are showing slight downward trends such as: Port Macquarie and Busselton.

Overall, most of the suburbs in this month’s SUA Tracker are maintaining their current LocationScore.

Download the Report now to find out more.

Note: LocationScore’s Top 50 SUA Tracker Report is available to paid LocationScore subscribers every month! Not yet a Subscriber? Subscribe to LocationScore now and get access to this report every month as well as: Suburb Analyser Reports covering thousands of House and Unit markets across Australia; Top 250 Fast Track Filter on each state and more! And since you’re a listener of The Property Couch, use this code for a 20% OFF discount: TPC20

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ps: We’ve got heaps of other Free Resources on the site! Make sure to check them all out here.

 

 

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