415 | When Do Out-Of-Pocket Costs Become Too Much?

One person doesn’t know if their properties are worth the out-of-pocket costs. 💸 

Another couple isn’t sure if they should strike when the market is hot….or if it’s best to wait. 

And another investor just wants to know, ‘Are we absolutely sure that Queensland’s Land Tax is off the table?!?’  


We’re back with another mega-exciting Q&A Day that speaks to the Psychology of Investing, especially in an environment with rising costs and interest rates. 😮  

From the common mindset blocks that investors face (like loss aversion and sunk cost) to how you can carve a path for yourself when you just don’t know what to do next…  

We’re unpacking why investing isn’t for everyone, the Quality of Living trade-offs, how and why you’d want to split your variable and fixed rates and tons more wisdom!  

Basically folks, this episode has a bit of gold (and anxious feelings) that we can all relate to.  

PLUS, Bryce and Ben unpack and explain CoreLogic’s recent release on the 2022-23 Federal Budget and what the RBA’s recent rate hike reflects about us as consumers.  

Another fantastic episode filled with your awesome questions, tune in now folks!  



P.S. And if you want help identifying the next step on your investing path, book a free, 100% no-obligation consultation with our award-winning team of Property Investment Advisors here.  


Questions We Answer

Question 1: Anonymous on Confirmation that QLD Land tax is off the table 

Hi Ben 

I’m a property investor contemplating my next purchase.  

I heard that due to lack of support QLD’s premier has had to back-track on her proposed new land tax which would see the subject tax calculated on one’s total Australian land holdings (where before was only based on holdings in QLD).  

Reason I am touching base is the QLD premier stated she would have to revoke the proposal and would have to be tabled and passed in parliament. Not understanding this process, I wondered if you might know whether the proposal has been formally revoked and/or if you can advise how or where I could direct this enquiry to obtain absolute proof this land tax is now off the table.  

LOL, there is no way I would want to proceed buying in QLD knowing the new land tax could send me broke.  I need to see it set in stone.  😂 Thanks for any help you can offer. 


Question 2: Travis on Out of pocket expenses to maintain to IP 

Hi gents hope you are well. 

My question and advice relates to out-of-pocket expenses for me to hold 2 investment properties, because at the moment after all costs and tax rebates I’m around 15-18k PA out of pocket. I own a ppr and have a vic & qld IP.  

My Moorr platform is up to date and has me in the surplus of 4K per month but only at the moment. 

My issue is I don’t see current benefits with the high out of pocket expenses which are only going to increase & a couple of costly expenses to address on each property with water issues one being a requirement to put in a pit drain to tackle storm water and the other a fixed awning to combat heavy rain over a balcony, 4K and 3.5k respectively. 

With all this expense and the impact on quality of life due to concerns of having to pay for the next big cost I wonder if it’s even worth it. 

I have spoken with my advisor and informs me it’s ok but I wonder if this is sustainable or do I sell out for a more comfortable quality of living. 

I appreciate that there is some sacrifices but 15-18k YOY with little prospect of that moving to a favorable portfolio holding I just don’t see. 

To add there will be continuous improvements to spend in the coming years just to keep up with the age of the properties and keep them fresh I don’t feel rental increases will help the catch up. 

Please share your advice and thoughts. 


Question 3: Rose on A question on paying investment loans 

Hi Ben and Bryce, 

This is Rose, I love the podcast and have really enjoyed the personal stories in your summer series. I’ve never heard of financial anorexia before, but I definitely have it. So I was wondering if you could give me some guidance. 

I bought a small investment property August 2021. I had a lucky guess that interest rates where going to go up sooner than the RBA was suggesting, and I fixed the whole loan at a lower rate than the bank offered for the variable. 

However, this means I don’t have an offset account and I’m only aloud to pay off extra up to a limited amount per year. 

This is an investment loan, and the property is positively geared. 

I’ve heard old adages about how you shouldn’t pay off investment loans because they’re tax deductible, but the saver in me wants to pay down the loan. 

So I’m asking you two as the experts, should I still pay off extra on my property investment loan now, while I have a low rate for a few years, or just keep paying back the minimum and invest the extra money elsewhere?

Question 4: K on Using equity – the now or never mentality 

Hey gents,

Thirty-something female listener here from Sydney, and big fan of all your work. You made lockdown liveable – thank you.

While I have met with one of your team already for a free consultation, I have to say I am finding taking the plunge my biggest challenge

My partner and I will be having a baby within a year, and have some modest “rainy day” savings in our offset – which took a few years to build. We purchased our home (PPR) in late 2020 and also have an investment property (unit) in Sydney purchased in 2018.

We now have a window of opportunity to use the equity in our home and investment property to buy our next investment and scale up.

I note in a recent Q&A episode you talked about borrowing capacity (for some) decreasing over time and becoming a tad harder, plus the mortgage environment will be generally more challenging with interest rates hikes etc.

I am not afraid of the macro changes going on in the world too much, but the ultimate question is: do we strike while the iron is hot, or wait?

The challenges ahead aren’t small (new human on the way, parental leave considerations, reduced income, rising interest rates etc)?

Please help.
K, Sydney.


Free Stuff Mentioned… 

  • Other Episodes Mentioned:  


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


Here’s some of the gold we cover… 

  • 0:00 – This week we’re tackling… 
  • 1:21 We’ve had a MASSIVE upgrade to our Lifestyle By Design platform!! Check it out here.  
  • 7:44 Quick Recap: CoreLogic, the RBA rate hike & Hot Property Data 
  • 10:33 – Feeling uneasy? This is what you should do. 
  • 13:02 Here’s how a previous TPC Guest is implementing our lessons…. 
  • 16:01 Why you should chase your curiosity!  
  • 17:28 Q1) Confirmation that QLD Land Tax is off the table 
  • 18:35 The process behind amending legislation like this!  
  • 20:40 Off-Ramping: Why you shouldn’t be concerned…. 
  • 24:03 Q2) Out-of-pocket expenses to maintain an IP 
  • 26:00 This a classic conundrum that investors face…  
  • 27:56 The Psychology of Investing: Sum Cost, Loss Aversion & Comfortable Quality of Living 
  • 29:06 – Over the long term, THIS disappears… 
  • 30:25  Here’s how Travis can face his anxiety 
  • 31:47 THIS is why some people aren’t suited to be property investors
  • 33:28 “You don’t believe it”  
  • 36:45 Why investing is just like a bottle of wine… 
  • 39:16 Q3) A question on paying investment loans 
  • 40:19 What is Financial Anorexia?  
  • 41:20 Some of the catches to consider…  
  • 42:49 How to split your variable and fixed rates  
  • 44:18 Ben’s Answer (In theory)  
  • 46:01 What’s the benefit of going part-variable?  
  • 46:51 Q4) Using equity – the now or never mentality  
  • 48:29 Why you should focus on long-term horizons!  
  • 51:04 How to find your pathway forward…(Psstt…if you’d like help with this, why not book a free, no-obligation consultation with one of our highly qualified Property Wealth Planning advisors here.)  
  • 54:30 The 3 Golden Dials!  
  • 57:03 – How we make the “Invisible, Visible” 


  • 1:01:47 Made a mistake on your iPhone calculator? Here’s how you can wipe your last move 
  • 1:02:58 Why Re-grading Property Investment in Cairns is outrageous!  
  • 1:08:08 Keep the Qs coming folks! Submit them on Speakpipe.  


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!

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!  


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


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?




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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