X

056 | Q&A – Exiting a contract, crowdfunding, what’s the impact of global events on Australia Property Market and more

It’s Q&A time! This week on The Property Couch, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

  • Exiting a contract question from Alex: Hi, Just looking for some advice as the more I listen to the podcast (and read your book), the more I think my first IP buy could be better. I’m currently on a defacto visa so can’t buy anything but new properties which led me to an off the plan development in Brisbane. While its marketed very well and made out to be a great buy, it goes against all you talk about- high rise, buying through a unqualified salesman, no room to improve, rental guarantee, and high strata. At the time it looked good but the more I understand what makes a good investment, the more I think I could do with the $40k deposit I put down. My question is, is there any way out of the contract that won’t cost me? It’s not due to be built for another 2 years so wondering if I could ask the developer to renege on the contract without penalty or even onsell it for cost price. I’ve started putting away some cash every week just in case it comes in undervalue but would rather not be in the position of ‘hoping’ this doesn’t happen. Would appreciate any advice to help!
  • Crowdfunding questions from Carol: I have heard people talking about “crowdfunding” being the next property investment strategy. What is “crowdfunding” and how will it work?
  • Ownership questions from Rob: What property ownership structure should investors use when buying an investment property? Individual, trust, company etc. Is there a need to balance tax advantages with long term asset protection on this issue?
  • Global events question from Cookie: I have an economy/finance related question and would like to hear your discussion on it. As we step into 2017, the market has been flooded with negative sentiment news. Lots of countries are under the water as oil and other commodity price plummet. China economy slowdown and share and currency tumbled. In the middle-east you have ISIS terrorist and European country have migration crisis. The central federal government around the world response to the crisis with more and more quantitative easing money printing. I feel like 2008 all over again and this time the crisis is on a global scale.The question I want to raise here is what will happen to the property market and banking policies if the crisis come in the near future? Few friend of mine thinking that the property price will go down like during the great depression. Am I best to wait until the crisis come and then purchase undervalued asset? But if there is a crisis and bank run, will interest rate raise to double digit and banks tighten the lending? What happen to my home loan if there is a bank fail? European central bank is doing negative interest rate already, will Australia heading to this direction one day? How should I position myself now so to be prepare for the day to come?
  • Case study question from Chris: Brief Bio – 33 yrs old. married with one child, live in Sydney, workfull time. have three properties. two in Townsville (both rented) building one in Melbourne currently. Currently renting in Sydney as units where we want to live sell for $800 k to $1 million. However we can rent and invest. We put all our money into our offset and pay out the credit card at the end of statement period. We also have a full functioningPAYG withholding variation in place.
    • Question 1 – with the house I am building in Melbourne. Will I ever be able to claim back the GST I have paid in the build contract?
    • Question 2 – With one of my properties in Townsville I am concerned that our body corporate fees are way to high. We pay over $5k pa for fees. No lift, no pool in complex and it is a three story masonry construct building. How do I compare if this is the going rate in our market?

 

References:

 

If you like this Q&A episode (Exiting a contract, crowdfunding, what’s the impact of global events on Australia Property Market and more), don’t forget to rate us at our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Case Demonstration: 4% Growth and 6% Yield vs. 6% Growth and 4% Yield

 

As promised in Episode 34, Ben will be demonstrating the impact a difference in strategy make to your portfolio. He’ll be using Empower Wealth’s Wealth Projection Modelling to highlight the difference in cash flow between a 4% Growth and 6% Yield vs. 6% Growth and 4% Yield. Watch the video to learn more.

CPA Public Practice Conference in Lorne – How to Plan to build a Passive Income For Life with Property Investment

 

In Episode 34 of this podcast, Bryce and Ben answered one of our listener’s questions regarding the estimated growth and returns that we used in all our property plan production. To further assist with the explanation, we thought it would be best to share this presentation done by the both of them at the CPA Australia Public Practice 2014 Conference in Lorne.

Watch this presentation and please do let us know if you have any question by email at [email protected] or fill out the form here.

 

 

031 (Part 1) | Story of an Investor and Lessons Learnt along the Way – Chat with Carolyn Wright

This week on the Property Couch, we’ve invited Carolyn Wright from Your Property Manager to talk about her own personal experience as a property investor. Bryce and Ben will also be sharing the lessons that most property investors learn along the way, particularly during the post purchase process.

Episode 031 (Part 1) | Story of an Investor and Lessons Learnt along the Way - Chat with Carolyn WrightGetting a property portfolio plan and buying an investment property is only half of the whole journey. At the end of the day, if tenants aren’t moving in, then you could potentially be facing a fair amount of out-of-pocket expenses. That is why having a property manager and understanding the process that they go through is important. Unfortunately, a lot of investors feel otherwise. Start listening to this podcast to find out what our hosts and Carolyn have gone through both as property investors themselves and in their professional role.

 

>> Episode 031 (Part 2) | – Checklist to Getting A Great Property Manager

 

If you like this podcast: “Story of an Investor and Investing Lessons Learnt along the Way – Chat with Carolyn Wright”, don’t forget to rate us at our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Money Magazine: Earn $55k a year in rental income

The Property Couch Money magazineEarn 55k in rental incomeThe highly anticipated Money Magazine cover story is here! Thanks to all you who have expressed their interests to download this article. As mentioned in previous podcasts, Bryce and the team at Empower Wealth are thrilled to contribute to this article. As the title “Earn $55k a year in rental income” suggested, this article explains how you can retire on a passive income from a well-designed property portfolio. There are three scenarios mentioned in this article:

  • Early 30s, single, renting and doesn’t own any properties
  • Early 40s couple with two young children and their own home
  • Late 40s, divorcee with a working teenager and her own home

 

Click on the image to download now. Once you’ve read it, let us know what you think or if you have any questions!

Instagram

Free Resources

What to be notified when there are
new updates & free resources?

  • This field is for validation purposes and should be left unchanged.

×

MONEY SMARTS SYSTEM

Plus We Will Also Notify You When We Release New Episodes

We Only Send You Awesome Stuff

×

SUGGEST A GUEST!

We Only Send You Awesome Stuff

×