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Episode 394 | Do you NEED to choose between Lifestyle & Wealth?! – Q&A

It’s been a while since we’ve said this (which makes it even more exciting!!)…

Ben reckons he’s found his new FAVOURITE QUESTION!!!!  

That’s because this question is something EVERYONE can relate to: Do I need to choose between building wealth or living the lifestyle you want?!  

Folks, this is the type of thing that we deal with on an everyday basis!

We’re using our years of battle-hardened experience and razor-sharp knowledge to outline what this question essentially boils down to, revealing how thousands of our clients have overcome this dilemma, and recommending just one thing that can clear all the rocks and rubble on anyone’s investing pathway, making the journey more akin to a walk in the park.  

Plus we’re covering loads more territory including…

  • How does our $2k weekly passive income goal tie in with Super?!  
  • And we’re talking Equity – should it be used to refinance or kept for the rainy days?! Is there a catch all solution to this?! And given today’s rising interest rate market, is now a good time to be making this move?
  • We also reveal some of our biggest Do’s and Don’ts when renovating and share our top resources to help you get the best bang for your buck.  

So if you’re ready for lots of evergreen wisdom, tune in now folks! 🛠️️👷  

 

Questions we Answer

Bernie Blyth on How to hold properties with higher cashflow drain 

Hello Bryce & Ben. 

This is Benny from Bayside in Melbourne. Firstly, a quick thanks for the value-added content you bring.

My question today is about how to adjust one’s portfolio in response to maintaining a healthy cashflow. My wife and I live in Metro in Melbourne and have 3 kids between 10 and 16. We’re happy in our own home and have 2 investment properties. Now first, the 2-bedroom unit, we bought in 2006 has double in value and is now positively geared to a degree. 

In 2014 we bought a tiny but old 1950s brick house in one of Melbourne’s baysides suburbs, which is a land bank. On the positive side, it’s experienced capital growth in the interim and is situated on a block of land that has redevelopment potential such as a subdivision.  

On the challenging side though, it’s still negatively geared and being an older property, it doesn’t rent for anywhere near as much as the recently developed properties around it and even though we both work, we have the cost of 2 kids in private schools simultaneously for the next six years combined with the prospect of rising interest rates, we are considering our next moves in terms of balancing property growth, cash flow and lifestyle. 

In general, what options would you recommend for consideration?  

Jake on – Pulling out equity and purchasing another 

Good day Guys, Jake here. 

Chasing an answer for this question that’s been sitting on my mind for a little bit. So my partner and I have recently refinanced a house in the Southeast Suburbs and fortunately we’ve found that there’s a bit of equity in there which is good.   

Now, what are your thoughts on pulling out essentially every bit of equity in the property to then purchase another one given that interest rates are going up and then might be a little bit of a plateau or even a slight decline in the property market. I’d love to hear your answer. 

It’s probably pretty straight forward but yeah, I though it would be a good one to myself and probably a lot of other people who’ve purchased in that pre-pandemic period so I’ll wait for the answer and appreciate the feedback and also go the tikes and hopefully onwards and upwards you gain for this season. 

Cheers guys!
Bye 

Adam Lett on Planning include Super? 

Morning Ben, Bryce and team. 

My name is Adam and I’m a long time listener of your show. My question relates to the plane of 3 to 4 quality investment properties to derive an income of $2000 a week in retirement. I’m working towards this goal. 

My question more specifically is how is this plan ties in or (dove tails in?) with an individual superannuation balance? 

By this I mean, if I or an individual had a healthy super balance of a million dollars plus is the $2000 a week on top of the super? Really like to hear your thoughts on this, keep up the good work. 

 

Laura Turner on Resources to help with renovating 

Hello, I’m Laura, I’m from Melbourne. 

My partner and I own our own home and we’ve just purchased our first investment property which we have nearly finished renovating. 

We purchased an old house, 3 bed, 1 bath, and we’ve turned it into 3 bed, 2 bath, with a walk-in room and we’ve updated everything to be within this century. I’m a conveyancer. My partner’s a carpenter and our plan moving forward is to keep purchasing property to renovate as this is something we both really enjoy, plus we see it as a quick way to grow our equity. 

What I don’t really understand is how to work out all of the figures. 

This current house that we have renovated ended costing a lot more than we anticipated. I haven’t had it valued yet as we are not finished but I am crossing all of my fingers that we haven’t over capitalised and that we will walk right with some kind of profit and then nothing is certain however,I am wondering if there’s someway you can recommend where I can go to learn how to find the right houses to renovate, how to calculate cost and what the end valuation is likely going to be. 

Any courses, tools or calculators you can recommend we use before we can go ahead and purchase our next property would be super helpful. Thank you! 

 

Free Stuff Mentioned… 

 

Our Renovation Resources recommendations! 

 

Here’s some of the gold we cover… 

  • 1:15 – Ask us a question on our Speak Pipe for a chance to win our Start & Build Course!
  • 1:50 – So…how’s Labour going?  
  • 3:22 – Folks, the REALER you are the less….?  
  • 4:44 – Q1) How to hold properties with higher cashflow drain 
  • 6:35 – It’s really a question around C____  
  • 8:11 – THIS is what most of our clients do!  
  • 10:25 – The 1 thing that everyone needs in situations like these is… 
  • 11:39 – Getting wealthy and STAYING wealthy are 2 very different things folks!  
  • 14:46 – Couples that come to us often have THIS problem  
  • 18:12 – The Compounding Effect – why you should hold!  
  • 19:31 – Q2) Pulling out equity and purchasing another 
  • 20:49 – Ben’s Warning!  
  • 23:13 – Make sure you have these foundations down!  
  • 24:38 – If you release your equity now, you’ll get less… 
  • 25:00 – For all our listeners: NOW is a good time to do these things 
  • 26:20 –The 3 best equity release strategies!  
  • 28:35 – The 3 steps to go from here (If you need one, why not check us out? 😊) 
  • 32:22 – A shoutout for our clients!  
  • 33:07 – Q3) Planning include Super? 
  • 36:50 – Check out these examples too! 
  • 37:14 – Q4) Resources to help with renovating 
  • 38:18 – Why shows like “The Block” don’t WORK!  
  • 40:10 – The minimal rule of thumb for renovating 
  • 41:07 – THIS is where you’ll get the most bang for buck…  
  • 42:46 – How much should you spend on your specs?  
  • 43:17 – For repeat renovators, be careful about this exemption!  
  • 44:03 – Bryce’s top 3 considerations  
  • 45:45 – Why Renovating to hold is a better strategy…. 
  • 46:54 – How to test the asset’s location!  
  • 47:54 – Reno resources we recommend!  

And… 

  • 49:40 – Find your phone…from your watch?! (For you Apple Users)  
  • 51:03 – There’s a developing Building Supply challenge… 

 

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 096 | Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)

Joining us on our first online recording today is Prue Muirhead! Prue is the co-founder of Muirhead Property Management, the 2010 Property Investor of the Year, teaches property investment and property management at TAFE Adelaide and an active investor with 18 positively geared properties under her belt. So in today’s episode, Bryce and Ben will be chatting with her about how she build her positively geared property portfolio and:

  • Her journey as a sophisticated property investor, the hurdles she faced along the way and how she overcame that
  • Understanding different risk profiles and property investing risks when building a portfolio
  • The lending challenges faced by a self-employed and how she used the equity in her current home to build up her portfolio
  • What’s her investment strategy and her definition of manufactured property growth
  • The importance of continuous learning, research and taking initiatives to an active investor
  • Self-management versus using a property manager
  • Potential for upgrades and renovations from a property manager perspective
  • The mindset and preparations required for property developments
  • Mistakes made along the way and her top tips for other property investors

 

If you like this podcast: “Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)”, don’t forget to rate us on 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/.

 

 

 

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