X

RBA July 2020 – Victoria’s Lockdown Slows The Speed Of Recovery & The Air Is Colder Up High

It’s the first Tuesday of the month… which means the RBA Board has met and announced the official cash rate!

This video features my update on the cash rate, as well as the increase in case numbers and “postcode lockdowns” we’re seeing here in Victoria — and how this will impact the overall economy moving forward. Plus, there’s definitely a property story taking shape, both good and bad, which is something I want EVERYONE interested in property investing to know about…

What’s discussed in this Update?

  • China: A story of compliance and success in stopping the virus
  • The US Politics and Economy
  • Global Equity Markets
  • Consumer and Business Confidence
  • Retail Spending
  • Credit and Lending – Personal and Business
  • Property Market News
  • Is there a Fiscal Cliff and will we see house prices fall?

 

And of course… Additional Helpful Resources on COVID-19

National Update: Click here

State Update:

 

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

 

 

 

 

 

 

Episode 293 | What Property To Buy & Practical Tips For Asset Selection

Have you ever wanted to know what property an investor should buy? It’s a question we get asked ALL the time and for a very good reason…. pick the wrong property and you’re in trouble!
So today’s central theme is all about Asset Selection! i.e. What type of property should an investor buy? What indicators can we measure to prove it’s a good one? How can you increase your capital growth?

You’ll get the answers to TEN quality (and recent) questions from our listeners… and we’re not holding back with our responses! (to the point where we actually had to tell ourselves to hurry up so we could get through all ten for you..!!)

This episode is a must-listen for anyone even remotely interested in property investing, folks! So plug in your head phones now! You can check out all the questions we answer below. And remember to write in here if you have a question for us, or follow us on Facebook so you don’t miss out on impromptu shout outs like the one that inspired this episode!

Finally – Asset Selection is one of our Four Pillars of Mastery for a reason, folks! So please choose wisely when it comes to your investment property! Tune in now and get the practical tips to find an investment grade property… 🙏

 

Free Stuff

Free Reports

Just fill in the form below folks and we’ll email you the free reports right away! 😊

  • Which Free Report are you interested in?

  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?

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

 

 

Questions

Question from Sambooks
Long time listener, first time engager.! We have been epically saving for our first home, which we would like to have the option to make an investment property when we grow out of it. Only catch is we currently live and rent in the Whitsundays, which is struggling significantly due to lowered tourism rates from COVID. Having listened to the podcast for over 2 years, I understand the risks of purchased property in a location with a poorly diversified economy. Understanding that you are unable to provide personal financial advice, is there anything else we can do to mitigate the risk, as we love the area (& both have stable employment) and can see the potential of some of the lower range properties coming into the market.

 

Question from Matt
I often see properties bought by Empower Wealth with the historical capital growth rate – on Facebook, Instagram etc. Is this a factor to consider when deciding whether a property will perform over the long term (20+ years)? Thanks in advance

 

Question from Todd
Q: Borderless Investing / Buyers Agents

My partner and I are looking at buying our next property interstate to 1) diversify our portfolio and 2) reduce land tax liability. Are there Buyers Agents which cover Australia wide who can give an objective view of which interstate market to buy in? Or do we need to reach out and find a local buyers agent in each state?

 

Question from Dan
Obviously depending on your own horse and what course you want to ride, but typically speaking Is it worth having 2 smaller to mid-range properties delivering high yield ($300-350k with 6% y) or worth chasing a high growth high level home (600-700k with 3%yield)?

Or even if the yield and growth stories were aligned, is 2 at half the pa income better than 1 at full pa income? Lower or higher risk?

(Psst… Bryce and Ben here. If you’re interested to learn more about this subject beyond our answer, check out this free case study on growth versus yield 😉)

 

Question from Kieren
Tossing up between moving into one of my rental properties as I have been renting the last twelve months after selling my last home ($1 saved is better than a dollar earned at the minute). Do you think this is a good strategy to ride out this COVID storm rather than buy right now? I want our next property to be the big rock in the jar. I also want to buy acreage, what are your thoughts on samford valley in Brisbane for long term Growth?

 

Question from Jack
Getting the location right can be narrowed right down to the street but as an investor holding long term and not actually wanting to sell, is it better to try get a house on that busy street in an a grade suburb at a discount so when getting valuations and comparable sales in the future it will work in your favour?

 

Question from Matt
Thoughts on buying defence housing Australia projects? I wouldn’t buy new as I understand you’re buying the developers margins but would you buy as the second or third owner once the market has caught up?

Are there any downsides to permanent long term leases. I believe you’re locked in with their real estate agent that’s a much higher management fee (around 16%) but they cover any minor repairs and at the end of the defence lease they refresh the house up to ‘new’ standards.- new carpet, fresh paint ect

 

Question from Damien
Could Bryce and Ben talk about active investing fixer upperers, buying to subdivide and build units, and buying 2 bed-1 bath period/character homes to turn into 4 bed-2bath homes

 

Question from Jarryd
I bought ‘house & land’ 3 years ago before I was educated. What can I do now to ensure growth?

 

Question from Matt
Is putting a granny flat out the back a good idea when retiring out the debt? Pros and cons?

 

 

 

 

 

Episode 292 | How to Get Australia’s Property Market Back on Track with This 7 Point Plan – Chat with Ken Morrison, CEO Property Council of Australia

Get excited. Here with us is a “V.V.I.P” guest… and this very, very important person is, wait for it… the national representative of the Australian property industry… Ken Morrison, CEO of Property Council of Australia!

And he’s about to unpack the newly announced Seven Point Plan for Economic Recovery!

Yep. You’re about to become fluent in what’s exactly in store for the property market from the man who plays a significant role in shaping it – this includes everything from Government stimulus packages, accelerated growth plans, housing affordability AND a little thing called “Stamp Duty”… & why it’s probably about time this ol’ tax ended up in the dustbin!

To give you an idea of the caliber of expertise you’re about to hear from…

As the Chief Executive of the Property Council of Australia, Ken Morrison has played a key role in shaping tax, planning and infrastructure policy for our property markets across the county for over two decades. He’s super passionate about the future of our cities and sits on a range of government task forces and committees. Plus, he’s also a director of the Green Building Council of Australia, deputy chair of the Business Coalition for Tax Reform, a director of the Australian Sustainable Built Environment Council (ASBEC), and is a Property Champion of Change promoting women in leadership roles.

 

Key Takeaways

  • A deep dive on the 7 Point Plan for Economic Recovery (and what it means for the property market)
  • Ken’s backstory and what lead him to playing a significant role in the industry
  • The Key Themes to Think About Beyond COVID-19
  • How involved is Ken in making critical Government decisions?
  • The 3 Critical Elements the Property Council of Australia is looking at right now to accelerate growth in the property market
  • The Property Grants on offer across the States
  • The Private Sector vs Social Housing
  • Abolishing Stamp Duty – what you need to know is currently happening
  • What can replace Stamp Duty?
  • Negative Gearing & Capital Gains Tax
  • Why is the Negative Gearing Policy STILL not off the cards?
  • The Biggest Economic Downfall
  • Who is Buying Investment Properties?
  • What is this idea about a “Property Rating” and home can it help homeowners?
  • Change for women in leadership roles: What does it look like?
  • How much does the property market influence the overall Australian economy?
  • What have people been doing with their superannuation during COVID-19?!

 

Free Stuff

 

 

 

 

Episode 291 | The Property Loophole: Recognising A Pipe Dream From The Real Deal

The Property “Loophole”… is it a myth?!

If you’re interested in investing in property, at some point or another you’re probably going to run into someone who tells you about some “secret loophole” – whether it be about property, tax, SMSFs… you name it – that you can use to, ahh, exploit the system.

Well, folks… let’s just call it out, shall we?

Because there’s a MASSIVE difference between a Pipe Dream and the Real Deal. And we can assure you, the price you’ll pay if you get the two wrong is no small fee!!

Here’s the deal… during the week we reached out to folks on our Facebook Page and asked them what questions they had on their mind right now… and we received some eye-opening comments that made us go…

“Whoa. Hang on a sec…”

And so, of course, this episode was born!

You can check out the exact questions further below, but here’s a quick scope on what we cover:

 

The Free Stuff

 

 

The Questions

Question about Buying Off The Plan from Angivin:
Guys we are very clear that you aren’t fans of buying Off The Plan, however can you please provide insight when this strategy has/could work please? 

 

Question about The Pipe Dream & Its Consequences from Kieren:
Is turning your super into a SMSF to borrow and build property a good idea? My mate at work got sold the pipe dream by his brother in law to do this. He tells me he is building dual key units and that it’s eventually going to net him $300,000 per year based on rental growth forecasts! I have told him this is not believable. Turns out his brother in law who convinced him to do this is getting $60k in kickbacks and is going to split it with him. He also tells me his interest rate is 5.7% because apparently no one lends to trusts cheaper than this? He also pays some bird $3k per year who will “sort any issues he has” on top of the property manager. And there is a snake “finance broker (as he referred to it)” in there somewhere who I reckon stitched him up on the interest rate. What happens when all this falls over and the money you put into your super each year doesn’t keep up with repayments? There is a $25k limit on how much super you can put in without big tax $$ so what then?

 

Question about How Much of A Buffer You Need from Toui
Hi TPC team, loving the Money SMARTS system! Question: when you talk about 3 to 6 months of living expenses, do you typically recommend that calculation on Essential spend? Or both Essential and Discretionary?

 

Question about The Pros & Cons Of Interest Only Versus Principle and Interest from Matthew
Hey guys! What is your opinion on the pros and cons of paying interest only vs principle? I am learning the ins and outs and have seen people succeed in either.

 

Question about The COVID-19 Recovery Across Specific States from Adam
Do you think any state will emerge from the covid storm quicker or better off than other states? And if so, will this translate in their property prices?

 

Question about Mortgage Payments On First Investment Property from Shannon
Suggestions on looking into P&I loan for first investment property if little difference in mortgage payment compared to interest only+ offset?

 

 

 

 

 

Episode 290 | Why Job Security Does NOT Equal Income Security… And Why You Must Know The Difference Before the Next “X-Factor” Event Catches You Out

If there’s one thing COVID-19 has taught us, it’s this… “Job Security is Everything”. But if we think about it… is it really?!

Sure, the global pandemic – the “X-factor” event – caught quite a few of us (well all of us, really) off guard… but it became quickly obvious that life was interrupted for folks at VERY diverse levels.

Cue: Income Security.

Yep, Income Security looks and feels a whole lot different than just having a job to show up to. In fact, we vouch for the fact that it is the #1 Most Important Thing to focus your energy on if you want financial peace… EVEN during the most uncertain of times. ‘Cos now that a real-world “X-Factor” event has indeed struck, folks are left in in two distinct camps – 1.) folks who can take advantage when opportunity strikes… and, 2.) folks who MUST learn from what’s just happened!!

So, today we are diving deep on how to create a Passive Income WITHOUT having to buy heaps of properties, sacrifice your weekends knocking down walls or live off two-noodles for the rest of your life (who on earth wants to do that?!)

And while we still maintain that the “Best Time to Buy” is when your cashflows allow… we’re going to let you in on the little known tip about the 2020’s that you might not know about (hint: great news if you want to invest in property 😉!)

We reckon’ this episode will help to set you up, stay the course and, ultimately, end up with that income security that’ll see you through any of life’s curveballs!

 

Psst…. Wanna learn EXACTLY How You Can Build A Multimillion-Dollar Property Portfolio That Creates $2,000 A Week In Passive Income???

Introducing The Property Couch’s FIRST EVER Online Course….

START & BUILD – Click Here For Limited-Time “Launch Offer” Incl. Huge Discount and Exclusive Bonuses!

Looking for the link? https://thepropertycouch.com.au/startandbuild

 

Free Stuff Mentioned

 

What we cover in today’s episode:

 

P.S. Yeww, footy’s back!

P.P.S. Your Start and Build Online Course: https://thepropertycouch.com.au/startandbuild

 

 

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.

 

 

 

 

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

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

We Only Send You Awesome Stuff

×

SUGGEST A GUEST!

We Only Send You Awesome Stuff

×