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Episode 297 | Closing The Gap: How This Indigenous Investor Is Pioneering The Way Forward – Chat with Nancia Guivarra

A little while ago, today’s guest reached out to us and said this, I’d really like you to interview an Aboriginal person (I’m one) as I think finance isn’t really our focus.”

And, just like that, the brainchild of this episode was born (Bryce is about to fill you in on how the rest unfolded…)!

Here’s the deal folks… financial literacy and its summit – financial peace – should be inclusive for everyone. So, today we’re walking you through the challenges and opportunities faced by Aboriginal and Torres Strait Islander peoples when it comes to wealth creation. Because there’s one very special person pioneering the way forward in this space…

Meet Nancia Guivarra; once a “stranger to money”, but now a pioneer for wealth creation!!

Nancia is a Meriam (Magaram), Wuthathi and Bindal Juru woman who was born in Brisbane and raised in Gladstone, Queensland. She has more than twenty years’ experience in media production, communications, entertainment, the arts and government policy. A former journalist, Nancia worked with National Indigenous Television (NITV) and as Head of Communications for the National Centre of Indigenous Excellence in Redfern, Sydney… and she now currently runs her own freelance communications consultancy company Amneris Pty Ltd.

 

And, yep… Nancia’s also a property investor (she’s bought and sold 5 properties at that!)… and she’s here to improve the financial literacy of Indigenous Australians AND spread the word Why Financial Inclusion Matters…

 

The Free Stuff

 

What we cover…

 

 

 

Episode 272 | Q & A: The Unspoken Truth About Growth Corridors & Picking The Right Property Investment Strategy

How many times have you heard something along these lines…?

“This suburb’s a growth corridor…”

“There’s heaps of development happening here… it’s the next growth corridor.”

“With all the new public transport networks, job opportunities and shops coming in, this place is absolutely a growth corridor… full of investment potential.”

With all this buzzword talk, it’s would appear that all us property investors need to do is hunt down the next “growth corridor”, invest in it before it really kicks off, and then sit pretty for the rest of our lives …

BUT. Folks, there is a massive problem with this! An unspoken truth about growth corridors that trips up a lot of investors out there. Sure, some “growth corridors” might indeed grow in value, but there is a huge misconception out there that we want to clear up today.

So, in our first Q&A of 2020, we’re diving deep on this unspoken truth and we’re also going to answer your questions about how to pick the right investment strategy… ‘cos guess what? While a whole lot of you folks know the fundamentals of property investing, you don’t necessarily know how to apply these to your own situation and goals!

 

Here’s a 30,000-foot view of what we’ll cover … 🚀

 

Resources Mentioned

 

The Questions

03:26 – Question from Jack on Bris vs Melb and differing opinions:

Hi there guys, first up I just want to stay that I’ve just tuned into your podcast and I’m absolutely loving it! I’m going to be buying a couple of your books too they seem to have a lot of great reviews and, yeah, I’m really excited to read them.

Fellas, I’m looking at starting my property investment journey in December 2020. Now, I’m following a couple of investors – one guy’s currently investing up in Brisbane. And this other guy I follow as well stays purely local, mainly Melbourne. He’s explained to me about the growth corridors – how they’re not really growth corridors – Packenham, Windenvale, Tarneit. I’ve gone and had a look and they don’t average as much as I thought they would. Nice places, but yeah. I can’t afford to invest in Melbourne itself and the different to the two is – the one up on Brisbane is getting people starting up around the $500 mark. And the other guy who invests only in Victoria says start out somewhere like Bendigo or Ballarat. He doesn’t think Geelong’s got good growth. Yeah, I’m hesitant to go to Bendigo and Ballarat as they are inland, but I’m hesitant that my judgement’s being clouded. I’ve always grown up in coastal places – always lived near the coast and love the coast. If you guys could give me your opinion that would be fantastic

 

13:18 – Question from Nick on Investing as an Expat:

Hi Bryce and Ben, my name is Nick. I’m calling all the way from Switzerland, although originally from the northern beaches in Sydney. My wife and I are both from the northern beaches, but we have been working here in Europe for the past 3 years and we are looking to buy our first property back in Australia. We’re keeping an open mind and looking all over the country – so not necessarily in Sydney.

We have a general question about what type of strategy we should be looking for being non-residents for tax purposes but Australian nationals, taking into account we can’t take advantage of first home owners grants, or negative gearing as we have no income back in Australia. Originally, we were considering purchasing an apartment with potentially 5-6% rental yield with the idea of having a high yielding property so one that can be potentially positively geared. What are your thoughts on this?

 

20:03 – Question from Nikii on upgrading PPOR now or later based on economic forecast:

Hi it’s currently June 27 2019, currently my husband and I purchased a 3 bed 2.5 bathroom 2 garage, 243sq townhouse, freehold in prime real estate in Hawthorne, Brisbane. We have been provided by market experts that we could get $830 – $850K  from the sale of our property. We’re currently wanting to upgrade to live in a better area. Would we be best with the economic forecast over the next couple of years to keep that property as an IP before upgrading to a property just in the very low millions.

 

26:03 – Question from Craig on selling a property at a loss or wait to recoup loses:

Good afternoon The Property Couch, my name’s Craig and I have a question. My partner and I currently own 3 investment properties between us. 2 of these properties are performing quite well, in terms of growth and low upkeep. The third investment property in Darwin was originally bought as a PPOR and is not performing well as an IP. The market is at the 32% downturn and is unlikely to recover any time soon. My question is… Should we continue selling the Darwin property at a loss and still walk away with about $30,000 to reinvest into a new or existing investment OR should we hang onto this investment long term with the intent of recuperating our losses, even though this property costs us about $8K a year? Thank you for your time.

 

31:40 – Question from Scott on what to do with money in the bank:

Hi guys, Scott* here, I’ve been on board following the podcast at April 2015 and have loved the journey. Almost five years in and I thought it was finally time to hit you guys up for some advice!

My wife Teresa* and I live in regional WA with our two kids aged 7 and 9. Both of us work full time for a state government department and we currently earn $270k gross per year combined. We own two properties in our hometown Perth. Our first home in Bibra Lake (shout out to Bryce!) which is valued at 430k with 350k owing. Our other property is a 1940s weatherboard cottage 5kms from the city with owner-occupier appeal, valued at 630k with 500k owing. So our total LVR is about 80%. Both loans are interest only and both properties have reliable tenants in them, paying $350 and $410 a week respectively.

We aren’t big spenders, and have no personal, car or HELP loans. Due to this, and the fact that our employer has heavily subsidised our rent whilst we’ve lived regionally, we’ve quietly amassed savings of $320k which currently sit in an offset account. We intend on staying in the bush for at least another 2 years before heading back to the big smoke, and in this we anticipate the $320k we have will grow by $75k each year in which we don’t do anything with it. However, I’m sensing there’s a huge opportunity cost here if we leave things any longer! Any advice as to what our next move should be would be very much appreciated. Keep up the stellar work.

 

39:30 – Question from David on Subdividing Parent’s Land:

Hey Ben and Bryce, Really been enjoying the podcast. I’ve got a bit of a unique question. At the moment I live with my parents and I am in my mid-20s, and I’m looking to subdivide a bit of their land as housing pricing are a bit too expensive for a single income. I was wondering if I classify for the First Home Buyers Grant if I build on their land and whether the actual certificate of title transfer needs to come onto my name, or can it remain in their name? Cheers, David.

 

Quote of the Episode

“An informed investor is a smart investor.”

 

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RBA November 2019 – Signs that the Economy may be on the Up?

After three cuts this year alone, will we be expecting a fourth cut? It’s the first Tuesday of the month folks which means the Reserve Bank of Australia has just released their official cash rate!

And it looks like there are a bit more positivity coming into the economy! Here’s what Ben will be unpacking in this month’s session:

  • What’s happening in the US and the Fed Reserve?
  • Update on the US-China Trade Deal and how it’ll impact the rest of the world
  • The IMF Global Forecast for 2020
  • Where is Australia’s inflation trend going and where does the RBA wants it to be
  • Newest update from CoreLogic Housing Market Index
  • How’s the construction activities performing and will this improve the housing market?
  • Are there any positive bounce in consumer spending and sentiment following the tax incentives?

 

 

 

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 253 | Top Tips For First Home Buyers

It can be a rough ride when you’re just starting your home ownership journey — and trying to get your foot up on the property ladder is, let’s be honest… really hard!

So today’s episode is all about helping our “Firstie” folks! That’s right… our very First Home Buyers!!! And we’re going Q&A style so we can stretch out the ol’ helping hand to our Firsties, and our Mums & Dads of Firsties, and haul all of them up on the ladder with us!!

And if you’re scratching your head thinking, “I’m not a first home buyer, or even a parent, family member or friend of one…” — no probs. You’ll learn what it’s REALLY like to face today’s property market for the first time… and you might just pick up some tips that you can actually use on your own journey… or just pick up some nuggets of new gold and file these away for when you want to impress someone with your property and homeownership knowledge. (Suss below for a summary of what we’re discussing and the exact questions we answer in today’s episode.)

 

You’ll learn Top Tips, like these…

  • How Much Of A Deposit is Enough? (seriously.)
  • The First Home Buyer Scheme
  • The Best Way To Get Ready For A Mortgage
  • Credit Scores
  • Higher Yielding Properties vs. Capital Growth Properties
  • How A Single Woman Can Get On The Property Ladder

 

Free Stuff Mentioned + Extra Support…

 

The Exact Questions Answered in Today’s Show…

Question from Jake

So we have bought a lemon!!! We have purchased a lemon, it’s been fantastic as it’s high yielding and we have a low income as I’m still studying. But I’m about to graduate and are unsure if we should move the money into a more balanced property, or if the cost of selling etc, will just lose too much money? The struggle is even when I graduated we will both be on fairly low incomes so, is a high cash flow possibility a benefit for us? Thanks for your time. I love the podcast, I’ve read the book and I’m excited for what the future holds!

 

Question from Joel

Hi Bryce, Ben and Stiggy. I am currently studying at university and working two jobs (48hrs a week) to support my partner and newborn and have been utilising the First Home Super Saver Scheme (FHSS). I’ve used this for two reasons one for the salary sacrifice tax saving, but to also reduce my taxable income to minimise my Help/HECS Debt repayments whilst studying. I’m saving $750 into the scheme per month, and have approximately $10k in total at the moment.

Because The Liberal Party introduced the new first home loan scheme at the last election, I have been worried that they would wind up the FHSS before I could access my savings, essentially locking it into my superfund. This would set me back in savings by 3-5 years. Do you have any insight into this?  I understand that your advice is general in nature, and isn’t directed to my personal standings, but would you be utilising the FHSS if you were a first home buyer? Thanks, Joel

 

Question from Tom

Hi Guys, Love the podcast, found it recently and have already gone through 70 episodes (bit of a way to go!). I’m currently in the process of purchasing a PPR for $550k. I’ve saved around 15% as a deposit but will be using a parental guarantee as collateral to free up my deposit amount for a value-add renovation and as my buffer going forward. My mortgage broker has suggested a P&I loan with an offset account, but has suggested an interest only loan isn’t possible with a parental guarantee as the bank likes the debt paid down to release the second (parental) mortgage. Is this the case? Can the guarantee be released on money in an offset, or is the only option waiting for debt pay down till the release at which point the loan is refit to an IO loan?

 

Question from Kelsey

Hey, just wanted to flying the flag for young females. I’m a new first homeowner. I’m 28 and a primary school teacher, and bought a two bed unit (1960s) in East Sydney (20 mins from CBD, 15 from the beach) in June. I paid $520,000 (negotiated from $549,000) and plan to rent it out and live closer to work in the CBD after January – I’m living here for the first 6 months to avoid stamp duty and do a little cosmetic work on the place. To save for the 15% deposit, I’ve always worked my regular job, and weekend work or afternoon work alongside it. Man, it has been hard work clocking up the hours and saving, especially in an expensive city and wanting to enjoy life on the weekends with my friends as well.

However, a weekly savings plan, and just always living a pretty simple lifestyle below my weekly earnings got me here. On top of that, I just competed my Masters of Education, which also has taken a bit of money and time – and tracking the property market takes a fair bit of time investment! Additionally, I’ve travelled overseas every year for the last 3 years to volunteer teach in countries like India, Indonesia and Fiji so I haven’t been too strict in saving everything I earn. Basically, I wanted to show that even a young single female can be a homeowner in the current 2019 property market. It took more than money, but great friends with advice, a lot of courage to just jump in and do it, and of course the invaluable help from your podcast. The reassurance I felt from listening was invaluable.The journey so far feels surreal as for so long media has banged on that’s its impossible. It’s definitely hard, but doable. Thanks again, Kelsey

 

Question from Ryan

I am 23 with roughly $36,000 in the bank. I will start full time work in my graduate role at the start of 2020 and am hoping to buy my first investment property within the year. What is the best way to get ready for my first mortgage? Should I get a credit card to improve my credit history as I have never required one to date or are there any other recommendations to make your case more appealing to the banks? How long in advance of a purchase should I contact a mortgage broker and would it be beneficial to start a discussion with them before I am ready to purchase? Thanks for all the great content, I’m about half way through all of the podcasts and have found them incredibly beneficial.

 

Question from Lisa

Hey Guys. First of all I would like to say how thankful I am for you taking the time to make the show and share your wealth of knowledge. A friend of mine had turned me onto your podcast and I can easily say without it I would have already made a horrible investment mistake!

I’m working my way through your episodes and am still quite far behind. My husband and I started saving a bit late in life but wound up with $50K in the savings. I am very conscious of preparing for our future now and want to use property investment as a means to do it. Not that long ago I listened to one of your episodes where you had mentioned getting started with $50K. Is that still possible now? I have a completely open mind to investing and there are areas where you can still get properties at lower prices that can provide some growth.

My question to you is: in this day and age now, can you only get started when you have over $100K for the deposit? Or is it still possible to start with around $50K?

 

P.S. Got more First Home Buyer Questions? Let us know here.

P.P.S. Got any other Questions for us? Let us know here.

 

 

 

 

RBA October 2019 – Third Time Lucky?

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

So… are the 75% of economists out there correct?? … has there been a THIRD CASH RATE DROP this year? Tune in to find out more.

And here’s what Ben will be unpacking in this month’s session:

  • What has influenced RBA’s Cash Rate decision?
  • Has the tax cut shown any impact in recent months’ data?
  • What’s holding the economy at the moment?
  • Will there be any Fiscal Policies from the Government to encourage spending?
  • How will the next Federal Budget look like?
  • Why we are NOT in a recession?
  • and of course.. what’s happening with the Global Economy?

 

 

 

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

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