407 | Which Debt Should I Pay Off First?!

By The Property Couch September 8, 2022 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

Have you ever wondered if there’s a “right” way – or smart life hack – to pay off debts?

Like is it better to pay off your investment property….before your Principal Place of Residence?! 🤔

Well folks, we have just the Q&A for you today where we tackle this very question and answer: Does this really shave off any debt?!?

At the core of this Q&A is how folks can maximise their opportunities and be money smart…

From renting your home as a holiday house to transferring a negatively geared property to your name, these folks have extremely interesting and niggly questions that we can’t wait to unwrap and sink our teeth into.

Tune in now to get (money) smart folks!

Questions We Answer…

Q1) Tracey Johnston on Transferring Property from Trust to Own Name

Hi, love your podcast and thanks for your advice.

Myself and my husband are in our mid 50’s and retiring in about 10years. We have 3 investment properties and No PPR. One of the IP’s has dual income and its owned in a discretionary trust, but it’s an older property with a few significant repairs and it’s heavily negatively geared.

We’re thinking of moving it to our personal names, given the quarantine of those losses, and we understand it’s a costly transfer, however if the pros and cons, retiring in less than 10 years and quarantining all those loses, we’re starting to think that it may be more advantageous to do it now.

I know you’ve answered a few questions on Trusts, just interested on if there is ever a good situation to transfer.

Thanks

Q2) Sala on Credit Card Surcharges and Money Smarts

Hi Bryce and Ben,

Thank you for the show. I’ve listened to all 401 episodes and enjoyed every single one of them.

My question is about paying your bill with a credit card with a surcharge vs keeping the money in an offset account for 55 days?

Which option is better?

Thank you.

Q3) Kyle on Renting our home in Ocean Grove whilst you’re on holidays

Hi Bryce and Ben,

Big fan of the podcast, thank you very much for all the contents you guys put out there. Certainly found it very helpful along my journey. I just had question in regards to listing your home on a holiday rental site.

In context, I live in a coastal town in Victoria called Ocean Grove and I’m considering putting my home up for rent while I’m away on holidays myself.

I just wanted to know what you guys think I should consider and any tips you might have?

Thanks again and Go Cats!

Q4) Shannon on Pay off PPOR or Investment Debt First

Hey guys, Shannon here.

Long time listener and first time recorder.I just wanna say thanks to the both of you for the work that you do.

You guys are the reason we made a decision to purchase our 2nd property investment at the start of covid in Frankston in Melbourne. Very scary initially but we’re reaping the rewards now.

My question is once you finished the accumulation phase and you have all the investment properties that you require, at consolidation phase, I know you guys (and lot of you people say) to pay down your Principal Place of Residence first for tax reasons, I wanted to entertain paying down the investment properties first and I’d like to know your thoughts on that.

Thanks

Free Stuff Mentioned…

Want to be on The Couch? With the weather warming up we’re starting to plan for our 2022/23 Summer Series!
If you’d like to be a guest, reach out to Stig here (We’d love to hear from you!!).
Get MoneySMART with our free, online money management platform, Moorr. Sign up or login here.
Read this Tax Blog – by Julia Hartman on The Top 5 Tax Planning Rules Every Property Investor Must Understand here.
Listen to Ben’s September RBA Update here.
Haven’t heard about Queensland’s new Land Tax? Listen to our recent episode where we unpack all the gold here.
Leave us a Question! Have a problem you don’t know how to solve? Chances are, other listeners are facing the same issue! Ask us on our SpeakPipe now.

Want to work with Bryce & Ben’s Award-Winning Team?

a roadmap to $2k per week passive income? >> Start a conversation with our Qualified Property Investment Advisors…
buying an investment-grade property in an investment-grade suburb? >> Start a conversation with our independent and experienced Buyers Agents…
set up or review of your borrowing strategy? >> Start a conversation with our Investment Savvy Mortgage Brokers…
your defence implementation? >> Start a conversation with our Financial Planners…
maximising your tax refund? >> Start a conversation with our Investment Savvy Tax Accountants…

Here’s some of the gold we cover…

0:00 – What we’ve got in store for you…
1:30 – Bryce isn’t looking forward to this 😉
3:49 – Join us on the Couch! How you can be a 2023 Summer Series Guest.
7:35 – Are you a Do-er or Dreamer?
11:59 – Q1) Transferring Property from Trust to Own Name
13:31 – This is a limitation of using a trust!
14:28 – The questions Tracey should be asking …
16:48 – Weighing up the taxiation benefits vs. the losses
17:57 – Why numbers will set you free!!
19:47- Our Answer…
20:10 – Ben’s Top Tips for those heading into retirement…
22:37 – Q2) Credit Card Surcharges vs. Money Smarts
23:12 – A little background to this Q….
23:49 – Let’s break this down with a case study!
27:05 – THIS was the smarter way to go…
27:35 – Folks, A_t_ma_ _ _n is the key!
29:08 – Q3) Renting our home in Ocean Grove whilst you’re on holidays
30:06 – On face value why does it seem like a good idea…
31:11 – The CGT impacts!
32:01 – What we’d recommend…
33:31 – What our tax experts had to say about it!!
35:05 – Q4) Pay off PPOR or Investment Debt First
36:40 – The 3 Types of Debt
38:19 – The argument behind this question…
39:28 – Our general rule of thumb!
40:59 – How do low Marginal Tax Rates benefit you??
41:37 – Investor Loans vs. Personal Mortgages: How the Banks could fill their loan books!
43:59– Folks, just wait till you have THIS feeling…
44:25 – Paid off my PPOR: What do I do with my surplus now?!
45:09 – Don’t invest like this, d_v_ _s_ _instead…

And…

48:07 – Got a new phone? Don’t end up like Ben!!
52:00 – Is the housing market showing distress?!??
53:09 – Folks, interest rates aren’t going up BECAUSE the economy is tanking, its because…
53:40 – So why aren’t we seeing mortgage distress? ( + Ben’s future forecast!)
55:23 – Vendors are human too!
56:57 – Scott Penders sold his property for how much?!
57:30 – Upcoming Issue: The Great Renters Tax
59:10 – Be on the podcast! L eave us a question on our SpeakPipe!

404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

By The Property Couch August 18, 2022 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

With higher interest rates and tighter budgets on the forecast, some folks have been left wondering…

“How does lifting interest rates – when everything is already so expensive – actually help with inflation??”

And for today’s episode – what do interest rates and inflation have to broccoli and property?!

To answer this, we’re holding a special 101-crash course in inflation to explain why the Reserve Bank of Australia has taken its course of action and Ben dovetails it all together to demystify how it impacts and interacts with the Australian property market.

And since it’s a massive Q&A Day, we’ve got tons more inflation-themed questions from folks probably wondering the same things as you! We’re unpacking…

Debt to income ratios (aka. the tool banks use to assess your credit worthiness): how can you restructure your debt to best benefit you?
And for investors wanting to release equity – beware! We’ve recently been hearing certain tax schemes that can reduce your 20-year loan to …4 years?!

Tune in now folks, this episode has tons of gold on inflation to help you get through these rate hikes.

Free Stuff Mentioned…

Fill out PIPA’s 2022 Sentiment Survey: Folks, this year’s Sentiment Survey by the Property Investment Professionals of Australia (PIPA) is perhaps one of the most important ones we’ve had yet! Let us know your experiences as an individual in the property market and have your voice heard. Complete the survey here.
BingeGuide to Property, Finance & Money Management – Download here
FREE eBook – Make Money Simple Again
FREE Book (Just pay for shipping!)– The Armchair Guide to Property Investing
Introducing moorr: our newest evolution of the MyWealth Portal! Check it out here.
Let us know how we’re doing! We want to know if we’re doing the right thing. Leave us a review here and let us know your thoughts.
Watch the RBA’s August Announcement here: Hear the Reserve Bank of Australia’s newest cash rate here.
Send us a question: Be featured in our next Q&A episode! Send us a Question via the SpeakPipe widget here.

Want to work with Bryce & Ben’s Award-Winning Team?

a roadmap to $2k per week passive income? >> Start a conversation with our Qualified Property Investment Advisors…
buying an investment-grade property in an investment-grade suburb? >> Start a conversation with our independent and experienced Buyers Agents…
your borrowing strategy? >> Start a conversation with our Investment Savvy Mortgage Brokers…
your defence implementation? >> Start a conversation with our Financial Planners…
maximising your tax refund? >> Start a conversation with our Investment Savvy Tax Accountants…

Here’s some of the gold we cover…

0:00 – A preview of today 😊
2:00 – The Sentiment Survey + tons of other free resources here!!
6:38 – 4 Golden Statements that Charlie Chaplin gave us…
8:52 – Q1) Inflation, Interest rates & Broccoli
10:11 – Inflation 101: Key concepts to understand!
12:21 – Was inflation imported into Australia???
12:59 – THIS is what happens if inflation gets out of control…
13:52 – So why has RBA taken this course of action??
15:14 – It’s about creating B_f_e_s
16:34 – Why Australia’s culture + housing system will ensure we will prevail!
18:14 – It’s because of these that lettuce and broccoli is expensive!
20:10 – The Reserve Bank of Australia’s 2 Goals
21:10 – Q2) Withdrawing Equity and Offset Mechanics
22:14 – Let’s be clear! This is a finable Tax Scheme!!
24:24 – Beware of people selling this theory…
26:20 – Folks, we see so many people make these mistakes!!
29:12 –How we would solve this…
31:30 – Going Liquid: Listen to this for options for releasing your equity!
35:10 – Q3) When Should I buy again?
37:40 – Should Ben (The question-asker) buy local?? Go through this thought process folks!
39:30 – The Commuter Belt Reset
40:04 – Why this question is really about Cost vs. Benefit!!
41:24 – How do CFOs, CEOs, Paper Planning and this question relate??
44:02 – Q4) Debt to Income (DTI) ratio
44:45 – What is DTI (and why does it matter??)
44:52 – How investors restructure debt
46:37 – How do lenders calculate your borrowing power??
48:47 – What happens when your DTI exceeds 6…
50:05 – The role of Loan to Value Ratios!
51:40 – Getting a lender who isn’t DTI certified – this is the catch!! 😮
54:28 – Make sure you unpack these numbers behind the DTI Scare News…
55:35 – Why new estates have high DTIs!
58:40 – How to change your DTI + get through this high-interest rate period!
1:01:40 – Have trouble managing discretionary and non-discretionary spending? Why not try moorr!
1:02:12 – Does that mean all property prices will drop?!
1:03:38 – Be a part of Q&A sessions! Send us a SpeakPipe here.

And…

1:04:46 – Sticky fingers? Closed a tab by accident? Use this shortcut!
1:06:18 – How does property interact with inflation??
1:09:11 – What this means for property owners…

331 | What Is Your Money Personality? – Chat with Effie Zahos

By The Property Couch March 25, 2021 in Podcast

Subscribe On Itunes Subscribe On Android

Did you know we all have a distinct “Money Personality”??

Yep – we do! And in this episode, we’re giving you the complete lowdown so you can identify YOUR personality (and what it says about your money habits), as well as practical tips to improve your bank balance, make your super work harder, and build a nestegg for retirement that won’t cost an arm and a leg to set up!

Folks, joining us today is our good friend and one of Australia’s leading personal finance commentators, Effie Zahos!

Effie is Canstar’s editor-at-large and has more than two decades’ experience helping Aussies make the most of their money. As the money expert for The Today Show, Effie offers her insights into current money matters and – get this! – prior to joining Canstar, Effie was the editor of Money Magazine for more than 20 years. (Anyone remember our interview with the legend Paul Clitheroe!?! Well, Effie worked right alongside him… so you can bet on the fact she knows her stuff!)

We cover a lot of ground in this episode, like the psychology of money, the best way to tackle debt, and simple (but effective) money hacks to get your money working harder.

EVEN BETTER, Effie gives us some exclusive insights from her new book, “Ditch the Debt and Get Rich” that’ll have you on track to earning a passive income & tweaking your spending habits like a pro!

So, which Money Personality are you?! Well, let’s find out…

Psst…bonus points if you can guess Ben’s money personality! 🤣

Effie’s Books

Free Stuff Mentioned

Here’s What We Cover….

01:50 – Who won our Start & Build giveaway this week!?! (a few more weeks to go!)
04:06 – Mindset Minute!
06:28 – Meet Effie Zahos
08:03 – Effie’s WORST Fear!
10:57 – The day Bryce met Effie…
12:56 – How to Retire on $2,000 a Week (how it started…!)
13:58 – How to Ditch the Debt and Get Rich!
15:00 – WHY are so many of us “bad” with money?
16:19 – Reasons people derail from their financial goals
17:17 – Triggers companies use to make you spend more money!
18:19 – The $10,000 Online Shopping Cart….!
19:51 – How to bring the future into the present so you can make lasting change
20:30 – Latest Data on investment trends!
22:33 – Why do you need to go BACKWARDS to go FORWARDS?
23:52 – The #1 tip to “get the monkey off your back”!
24:12 – Debt Avalanche vs Debt Snowball
25:45 – Where do people get into financial trouble?
27:13 – What Is YOUR Money Personality?
27:32 – How to model the most successful investors…
29:27 – The overlooked difference between SPENDING and INVESTING!
30:12 – The 48-Hour Rule
32:02 – The 2 Critical Things to put “side by side” to curb your spending
33:08 – Generational Differences with Money Strategies
35:29 – Do this immediately with your super!
37:05 – Why “Balance is B.S” with wealth creation!
39:12 – Why is writing your goals down so important?
39:45 – Effie’s 3 Financial Goals This Year!
40:43 – The “Coke bottle trick” that makes you money!
42:02 – Why money makes money…
43:26 – Investing in shares!
44:52 – How much do you need to invest!?!
45:35 – Understanding the psychology of wealth creation!
47:08 – Buy now and pay LMI…or wait until you have a deposit?
49:37 – Pay off your mortgage or invest?
54:36 – A key tip about Debt Avalanche…
58:44 – Do you have this in YOUR car???

And…

1:00:29 – What’s making property news?

146 | 10 Reasons Why You’re NOT Rich Yet

By The Property Couch November 16, 2017 in Podcast

Subscribe On Itunes Subscribe On Android

Happy Podcast Day folks! Aside from growing our moustaches for Movember, this week we’ve also been growing a ripper episode for you **drum roll please** …

Today, we’re giving you the 10 Reasons Why You’re Not Rich Yet!!!

(Now, we’ll be honest, we’re not huge fans of the word “rich” — we prefer the term “financially free”, but you get the gist.)

So why haven’t you got the money you thought you’d have by now? When is the suitcase of cash finally going to land at your feet? Is it something you might be doing/not doing?

Yep, this one just might make you take a long, hard look at yourself (in a nurturing way, of course). Because there are TEN reasons — a few of which you might be doing now — that are blocking your shot at financial freedom.

Speaking of finances, if you help us donate to Movember with a $25 donation or more, we will give you a FREE SIGNED COPY OF OUR BEST SELLER BOOK! Yep, we’ll cover the cost of postage and, guess what… The book’s worth more than $25. AND donations above $2 are tax deductible! 3 wins. You, a good cause, and us MoBros!!

How do you do it?

Go to our Mo’s Team Page here and donate $25 or more.
Once you’ve done it, let us know by commenting on this Facebook Post here.
We’ll send you the book. Easy!

AND if we hit our target of raising $5,000 for Movember, Ben has promised to create a FREE WEBINAR on Working Out Your Retirement Gap! But we need to hit the $5,000 mark to make him prioritise this. Remember, it’s for a great cause (and you get to see the guys look ridiculous for another 2 weeks)!

Alright, where’s the money at? (What you can expect in today’s show:)

The mistake Bryce made in his twenties, which you might be making now
Is there more to wealth than never spending?
The power of compounding right now
Why you shouldn’t just budget for it.
How to get the best out of a Buyers Agent so they make you more money
The choices rich people make that you can too
Why the moving parts of your cash flow have a lot to do with it
How long will it take until you’re rich?
What can you learn from Roger Federer and Qantas?
Can you get rich just by thinking about it?
The balancing act you need to master
The bad advice you’re listening to that’s stealing your money!
How do wealthy people think about debt?

Remember: Money’s not everything. And you can experience huge wealth by helping others! Donate to Movember here.

082 | Q&A – Great tenants vs higher rents, Investing in property overseas, Managing leverage and more

By The Property Couch September 22, 2016 in Podcast, Q&A, Real life stories

Subscribe On Itunes Subscribe On Android

It has been 3 weeks since our last Question and Answers episode, so it’s about time for another one! Thank you again for sending in your questions.

For today’s podcast, we will be answering these questions:

Question on tenants vs rents from Mark: Is it better to keep a great tenant on a lower rental, than push for a great rental return and gamble with the quality of new tenants (and subsequent vacancy in between.)

Question on exit strategy from Tom: Hi, I would like to hear more about exit strategies when time is not on my side. I have just turned 50, with my youngest child in yr 12 and eldest living in eastern states. My principal place of residence (PPOR) is paid off (value $1.1M) and I have 2 investment properties with a combined value of $1m. But an investment loan of $1.2m. The reason for the negative Equity is that I have been capitalising. The investment interest whilst I directed all rental income into paying off my PPOR. So now I need to know what is next. My goal is to retire or work reduced hours in and on a corporate role by age 55. I am presently in a well-paid job paying about $220k and have about $270k in super, which I am contributing up to the max.$35k pa. I can’t get my headspace around what to do next. any suggestions would be appreciated.

Question on investing in property overseas from Sean: Would be great to hear your thoughts about investing in property overseas as part of a portfolio, particularly NZ. There’s some “wave rider” type activity gaining momentum around Auckland, which has become a heated market it seems.

Question on career in property investing:Hi Ben & Bryce, Firstly I would like to say you guys are doing an awesome job with the podcast. Have been listening from the start and as a born and bread Victorian now living in NSW I love the footy talk!!!!I would also like to congratulate you on your book “The Armchair Guide to Property Investing“. I will be handing it out to numerous friends and family as I believe it is gold when starting out and not knowing which direction to go.So some background on my situation. I started educating myself 2 years ago with every property podcasts/book I could find and now believe I have the foundations for property investing going forward with the right team around me (coach, broker, accountant, solicitor & acquisitions team).We moved to the Hunter Valley to set ourselves up to give us more “choices” in the future. I am currently on a high income of $140k as a coal miner but to be honest, my heart isn’t in it anymore and I don’t enjoy my work (except the pay each fortnight).The reason for reaching out to you guys is because we currently have a 3 year plan (possibly shorter) to move back to the Geelong area to be closer to our family and also closer to Melbourne because we live and breathe AFL. By then we plan to have 2-3 good capital growth properties in our portfolio in major cities utilising the high income (currently in process of acquiring property in Brisbane as I write this email).By the end of 2016 my goal is to complete a Diploma of Finance and Mortgage Broking Management because I believe that everything revolves around finance in creating wealth through property. I am also working towards 1-2 weeks work experience with my property acquisitions team to see how everything operates on the ground.My question to you guys is what else would you recommend I do over the next few years in preparation to help transition into the property investing line of work (educating others to create wealth or something down that path).

Question on paying down debt or invest from Ian: Good afternoon gents, thank you for sharing your wisdom. I’m 40/67 episodes so far and still loving the insight. A question for your podcast: Getting rid of debt 1st vs investing 1st: As a health practitioner with approximately 5K of discretionary income/month would you recommend chipping away at approximately $35K of bad debt mixed between high and low interest accounts and then seeking professional aid such as yours to become a 1st time rentvestor or seek out assistance and attempt to send that bad debit into some sort of mortgage? Love your work and your banter.

Question on Property Investment Advisor or Buyers Agent first from Paul: Hey Guys, Love the podcasts and your book. Great help for us newbs. I have just started my journey into the world of property investing. After listening to you guys plus reading your book I have taken my first step and started meeting with mortgage brokers to get an understanding of where I stand financially. One of the brokers I meet with was from your team at Empower Wealth. He was great and very professional. My question to you guys is once I have my finances ready to go do I need to be looking to meet with a property adviser or a buyers agent next? Your advice on this would be great. Keep up the great work!

If you like this Q&A episode (Good tenants vs higher rents, Investing in property overseas, Managing leverage and more), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: https://thepropertycouch.com.au/topics/

Questions We Answer…

Free Stuff Mentioned…

Want to work with Bryce & Ben’s Award-Winning Team?

Here’s some of the gold we cover…

“How does lifting interest rates – when everything is already so expensive – actually help with inflation??”

Free Stuff Mentioned…

Want to work with Bryce & Ben’s Award-Winning Team?

Here’s some of the gold we cover…

Effie’s Books

Free Stuff Mentioned

Here’s What We Cover….

Instagram

Free Resources

Footer

MONEY SMARTS SYSTEM