054 | Q&A – Entry into the property investment market, debt reduction and investing in house and land packages

By The Property Couch March 10, 2016 in Podcast, Q&A

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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!

Entry into the property investment market question from Aaron: Hi guys! could you possibly talk about entry into the property investment market? Specifically how much money you need? I have some money sitting in a term deposit but I have heard that you need more like $40,000 before you can even look at starting out. If that’s true, then I need to keep saving. But I keep thinking to myself “what if its better to start investing that money into cheaper property so that you can start investing sooner rather than later”. How much money should people have before starting?

Debt reduction questions from Marty: I have just finished the new book and found the content informative and practical. I do however find myself grasping for answers about debt pay down in the practical section. How does the graph move to a zero debt position on IOnly loans? I would like some more detail on this area as it’s probably the missing link for me in the whole process. In case study three a couple with surplus annual income of 36k Pays 1,000,000 in principle in 10 years with IO loans. The property selections are not high yielding so I’d expect the cash flow to be only just positive even at year 15. Am I missing something?

Debt reduction questions from Mitch: Hey guys. Love your podcasts and your book. Just a quick question about paying down debt to start receiving passive income. In your book you say to set up all loans to interest only, if I want to retire off passive income at the age of 40 how do I pay down debt without selling any properties and without access to my superannuation?

House and land packages question from Rob: Hi Guys, love the podcast – I’m an avid listener and after finding you, went back to Ep 1 and went through them all. I’m just about to place an order on the book… Fundamental Question: Is a house and land package always a bad investment, or are there situations it can work as an investment property?

If you like this Q&A episode (Entry into the property investment market, debt reduction and investing in house and land packages), 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: https://thepropertycouch.com.au/topics/

041 | The Moving Parts of Cash Flow Management (Money & Wealth Accumulation Model)

By The Property Couch December 10, 2015 in Podcast

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This week on The Property Couch, Bryce and Ben discuss the moving parts of a cash flow management strategy.

As compared to Episode 3 (Four Pillars of Mastery – Cash Flow Management) where we talked about the flow of money, this episode is mainly about the Money and Wealth Accumulation Model. It includes the variables and assumptions to consider when modelling sophisticated wealth outcomes.

As this topic can be fairly detailed, we strongly recommend you have the diagram open while listening to this episode.

We will also be answering this question from Bradden:

You often refer to paying down debt during your talks as a means of creating passive income. Is there a strategy of paying down debt on your rental properties? Is it just as simple as paying P&I? Do you only start paying down debt once you have finished your accumulation phase? Does this only happen when you start to sell one of your properties? I’m interested in hearing your thoughts on paying down debt. P.S. Ben’s not a bad bloke for a Collingwood supporter.

This topic is also discussed in Part Three (Section 10) of our book The Armchair Guide to Property Investing. For those who have the book, you can also refer to page 219 for additional reference.

Free resources mentioned in this episode

Money & Wealth Accumulation Model Fact Sheet – Download here
Part Three (Section 10) of the book – Order a copy here

If you enjoyed this episode, 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/

7 Common Mistakes When Selecting A Property Loan

By The Property Couch June 26, 2015 in Free Resources

Whether it’s your very first home loan, your first investment property loan or maybe even a refinance of an existing loan, the decision you make about what lender and what loan product you choose carries a significant financial impact on you, so you need to get it right. As promised in Episode 17 | Who’s Your Personal Banker?, this special report is about ensuring that those of you just starting out, or those of you who need your financial affairs brought back into order, don’t make any common mistakes.

Click on the report to start downloading it.

Renovation does not equal Riches

By Bryce Holdaway June 9, 2015 in Free Resources, Videos

The excitement and extraordinary results of a good renovation is immense. We’ve seen it on TV shows like The Block, but does renovating always equal riches? Bryce Holdaway thinks there is more to it. Watch the video to learn more.

Bryce Holdaway – Partner, Property Advisor & Buyers Agent

As co-host of The Property Couch, Bryce Holdaway is also a partner at Empower Wealth and Co-Host of Relocation Relocation Australia and Location Location Location Australia on Foxtel’s Lifestyle Channel. A qualified Buyers Agent and Financial Planner, Bryce holds a Bachelor of Commerce (Accounting), Real Estate Agent License and Diploma in Financial Services (Financial Planning).

004 | Four Pillars of Mastery – Borrowing Power

By The Property Couch March 19, 2015 in Podcast, Property Investment, Property Investment Formula

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This may be one of the most important factors when investing in property…

Continuing with our “ABCD” Property Investment Formula which all property investors should master, we’re advancing to B for Borrowing Power!!

Folks, now that you know how much surplus you have at the end of each month (thanks to the previous episode on Cash Flow Management), the next step is knowing YOUR borrowing power!

Did you know that having higher borrowing power can greatly increase your accumulated wealth?

But it’s not always as simple as going to your bank or mortgage broker to set up a loan…

In fact, many unseen factors can create unwanted “glass ceilings”.

We’ll cover how to recognise the signs of Borrowing Power and more importantly HOW to increase yours…

PLUS, we’re unpacking INCOME: how does it affect your suburb’s desirability and value growth, and when did income and property value even become linked?!

👉 Tune in for the gold!

Free Stuff Mentioned

Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away!

Here’s some of the gold we cover…

1:55 – What is borrowing power (and why is it so important?!)
3:34 – Don’t make this couple’s mistake!
4:55 – The relationship between borrowing power and prices
7:00 – Who actually sets the market price?
7:38 – The signs of Borrowing Power!
8:00 – How do occupants affect their suburb’s value?
10:07 – The rise of The Great Australian Dream!
11:11 – The 1970s saw THIS positive change
11:53 – The 1990s, however, were…
12:40 – Why income is SO important!
14:34 – Leverage decides ____ class
15:54 – What is cash-on-cash returns?
16:50 – Cash Flow Management and SENSIBLE Gearing!
18:00 – How to increase YOUR borrowing power

Free resources mentioned in this episode

Free Stuff Mentioned

Here’s some of the gold we cover…

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Free Resources

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