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Episode 198 | Nine Ways to Navigate the Credit Crunch

Folks, if you’re playing the long-term game in property investing, you’ve got to know how to navigate the credit crunch!

And what do we mean by this??

… You MUST build financial muscle in order to succeed at the game of lending! Because folks you can NOT save your way to a passive income. You just can’t.

What you need is access to credit and an ability to optimise this credit so that it works in your absolute best interest.

But of course, there’s an elephant in the room here, isn’t there??

The lending landscape has changed, folks! This can be seen from APRA’s lending restrictions all the way to the banks feeling the pressure following the Royal Commission — both of which are just the tip of the iceberg property investors are now facing when it comes to accessing finance.

So. Here we are at the messy middle…… how can YOU cut through these challenges and still get the lending results you need??

Well, we’ve got 9 Tips up our sleeve to help you do just this folks!!!

 

Before we kick off the key learnings, here’s a couple of reminders from today’s episode…

1. Have you got a copy of Make Money Simple Again yet?

Grab a copy with 20% Discount here! Just use this coupon code: TPC20

Not ready to buy the book yet? No worries! Just download the Free Chapter here and check it out. 😉

 

2. Looking for the Facebook Group? Click here to join!

 

2. Would you like to be on our Summer Series Podcast?

If you missed last week’s episode, Our Embarrassing True Stories: What Was Money Like in Our Own Lives?, we’re on the hunt for listeners who have had a “Money Transformation”! (We don’t want to fluff our own pillows or promote our own company or anything like that… we simply want to chat with people who have had an honest, real-life transformation so that others can take inspiration from their own story and realise that it’s entirely achievable in their own lives too!)

So, if you think you’d be interested in sharing your money story in order to help your fellow Couchers (we’d be super grateful), send us some details here or simply fill in the form below!

  • (What would you like to be known on the podcast?)
  • A quick summary on your Money Story!
  • Don't spill all the beans! 😉

  • And finally, have you implemented the Money S.M.A.R.T.S?

 

 

 

RBA Nov 2018 Announcement – When Will RBA Move Rates?

Hello folks, as promised, we’ll be posting Ben’s short commentary on the RBA Cash Rate Decision on a regular basis!
Let us know if you like this segment below! 🙂

So, on this Melbourne Cup Tuesday, what will be RBA’s decision on the cash rate?

Let’s start with some positive news! The seasonally adjusted unemployment rate has unexpectedly dropped to 5% in September 2018, the lowest job rate since April 2012 while markets estimated 5.3%. But what about wage growth?

Ben will be unpacking how this will be affecting the RBA’s decision to move the cash rate, which had been at 1.5% since August 2016. And of course, a bit of an update on the equity and property market as well!

There’s still buying opportunities in that particular market; but you’ve got to be very, very careful in terms of where you’re buying. So stick to the fundamentals and focus in on where you’ll get that good return over time.

Looking for the CoreLogic’s Monthly Housing Update? Click here to find out more!

If you’d like to check out his previous commentaries, click here.

 

 

 

 

DISCLAIMER: This video 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 189 | Q & A – Vic Residential Tenancy Changes and “Legoland” in a Good Location

Folks, today we’re tackling your questions around some tough topics!

Because chances are, you’ve heard about the amendments that’ve recently been passed on Victoria’s Residential Tenancies Act — laws that allow tenants to keep pets and make ‘minor’ modifications to the property, regardless of the landlord’s wishes.

So we’re going to give our take on this, as well as take a deep dive on “Legoland” and whether or not these properties are worth considering if they’re sitting in a good location. Plus a certain Donald Trump gets a mention, as does the interest rate rise we’ve seen from the big banks right here on our home turf!

And why the tough topics now?

Well folks, it’s pretty simple… we’ve sweated out our brand new book, Make Money Simple Again (Get 30% off here), and now that it’s off to the printers… we’re ready to take on some of your other challenges!

 

Before we kick it off, just a shout out that PICA’S holding a limited-seating event on Tuesday 18th September at 6pm — to discuss on the amendments to the Victorian Residential Tenancy Act…

This is an exclusive event (only 60 seats available) with Yvonne Martin and will take place at Madgwicks Lawyers, Level 6, 140 William Street, Melbourne.

Register Here: PICA – Changes to the Residential Tenancies Act

 

And yes,

WE FINALLY FINISHED OUR BOOK, Make Money Simple Again!!!

Get 30% OFF IF YOU JOIN THE WAITLIST
(AND get it before anyone else!)

CLICK HERE TO GET THE DETAILS: Make Money Simple Again

 

But back to the tricky Q & A….

 

Question — Chris on Tenancy Changes

I’m disappointed at your quick video overview regarding proposed rental tenancy changes in Victoria. I have no problem with most of the suggested changes but, how can you not be alarmed at tenants being given the right to have pets and make modifications deemed ‘minor’ – whatever that means? We are not just talking about picture hooks here! After investigating further, this may include security measures and air conditioning! Who pays for these? You flippantly dismiss the pet comment with a remark about ’tiles’. Are you serious??? What about carpets and polished floorboards taking a pounding from pets’ claws and their excrement! I will tell you from experience that any sort of steam cleaning and fumigating of carpets etc….even at the tenant’s expense is not the answer. I’ve had to on at least two occasions (where both urine and faecal matter was so prevalent) had no choice, but to change the carpets! Forget the floorboards – too damn expensive to re-sand and polish!  Please tell me that these abovementioned points are also concerns for you?

 

SpeakPipe Question – Emma on Rate Statement showing a Decline

I have a 2 bedroom, 2 bathroom, 1 car spot investment apartment in Maribyrnong. I’ve just noticed on my new rate statement that the Capital Improved Value and the Site Value have decreased. It is a long term investment, should I be worried? Or should I just enjoy the lower rates this year? Thanks!

 

SpeakPipe Question — Lucas about Trump and IO Loans

… As we know, America runs at huge deficits, and Trump’s now starting trade wars with a whole bunch of economic blocks and their interest rates are going up so it’s going to be harder for them to service their debt. Deficits are going to become bigger & in case that backfires, and causes another GFC situation, what impact will Trump have on the Australian housing market? And, also, we’ll probably have another compounding problem with tougher lending criteria and people having less opportunity to roll interest-only with banks. So I’d like to know what you think will happen to the property market if these things happen, which is the worst case scenario. Thank you.

 

Question — Nick on History of Sales

Hi, I am a casual listener of the podcast and a first time buyer looking for a place to live in Melbourne. We have found a townhouse in Thornbury, a property that ticks all the boxes for us and looks like a good price. However, the property is selling for only a fraction over that which it was purchased in 2014 and is amongst about 50 of other similar townhouses — the property next door is also for sale. It is probably the best located/nicest property we can afford that we have found in Melbourne but those seem like red flags from an investment point of view. I thought I might just ask and see if you might be able to point us in the right direction as to how much we should read into previous sale prices and also about what saturation means in the townhouse market? Thank you and keep up the rad podcasts!

 

 

Episode 186 | Q & A – Should You Pay Down the Principle Loan When Interest Rates are Low? Are Multiple Offset Accounts a Good Idea? PLUS The Step-by-Step Process to Buy an Investment Property!

“The people’s podcast” is EXACTLY that today folks! Because here’s the deal… it’s full-on, gold-packed Q & A Day!!

And we’re diving headfirst into…

  1. Offset accounts —is it a good idea to have multiple offset accounts? And should you offset your highest loan or the oldest loan?
  2. Investing in outer suburbs versus inner suburbs
  3. The step-by-step process of buying an investment property
  4. Buying a home (PPOR) versus an investment property (IP)
  5. Lending — should you pay down the principle of an investment property when interest rates are low?
  6. Why should you join PICA?
  7. TWO amazing LifeHacks from our community!

Oh folks, we don’t want to pick favourites — but even we’ll admit it — these are some solid questions from our listeners!

From start (Mindset Minute) to “Knowledge is empowering, but only if you act on it”… this episode is ALL YOURS!

Before we jump into the questions, click here to download Ben’s Data Dive on Better Price Point, Better Location and Better Returns or fill in the form below and we’ll send it to your email right away.

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Questions from Kyrillos:

  1. If you’re purchasing more than 1 property, can you get more than one offset account? And if so do you split all the cash between them, or is it wiser to pour in all the cash in the offset against a larger loan?
  2. To do with LocationScore — I’ve gone through and created a Spreadsheet of all of the suburbs within 50km of Brisbane’s CBD and found that most of the better-scored suburbs are actually quite far, in terms of the asset selection criteria you guys talk about. I understand that LocationScore is more of a demand versus supply score, so if you’re a Buy and Hold investor, at a suburb level, is buying in a better location still the better option?
  3. Would you be able to run through the process of buying a property? Could you run through a quick, step by step process of what happens when (research, when should you get building and pest inspection etc)?

Note 1: Looking for the link to join the Property Investors Council of Australia (PICA)? Learn more about their membership here!

Note 2: Keen to watch Ben’s Data Dive on Better Price Point, Better Location and Better Returns on Investment? Just click here or fill in the form below to get access to it.

 

Question from Cam:

My partner and I are wanting to buy 1st home. We are 27 years old, have $100,000 saved and are in our 3rd year of full time employment with a combined income of $150K. Should we be stretching ourselves to buy in the area we love FIRST, or should we be buying an investment property and hope to build equity and use it to purchase our Principal Place of Residence down the track?

 

Question from Sonya:

Hi guys, love the podcast. There’s a lot of talk out there about the risk of Australians switching from Interest Only to Principal and Interest loans. I’m currently paying Interest Only, with no interest to refinance as I am starting up my own business and currently don’t have any other income coming in. Half of my loan is fixed, the other half is variable. My question is: should I pay down the principle of my investment property while the interest rates are low to control the risk of a high interest rate at a later date and the Principal and Interest I would have to pay when my loan switches over? I’m less interested in the tax advantages, and am more interested in controlling risk and reducing my overall repayments. I know that the longer my Interest Only repayment is, the higher my repayments will have to be when it switches over — and that doesn’t sound great to me. I’m sure this, and the impact of Interest Only lending, is of interest to other listeners, so I hope you can provide insight. Love your work again. Cheers!

 

 

Data Dive! Better Price Point, Better Location and Better Returns

Fill in the form below and we’ll send it to your email right away! 🙂

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Episode 180 | Building A Portfolio in a Changing Market – LIVE Q & A in Melbourne

The Australian property market collapsing. Housing market under the pump. Melbourne’s property downfall. House sales hit new low…

… folks, with headlines like these, we may as well call it a day, bid you farewell in a foreign language like old times, and exchange the ol’ investor returns for an earlier-than-planned retirement!

Wait, why would we say such a thing?

Well, you might’ve noticed — the market’s corrected and it’s making a LOT of folks out there nervous! And why shouldn’t it?

You don’t want to fork out the big bucks (probably the most you’ve ever spent) on a property that’s going to end in little-to-no return come market crash, right? Not to mention, you don’t want this said “investment” to wind up in an economic tsunami, which by the way, WILL happen when life follows the fate of a catchy news headline.

So… is that what’s really what’s happening here? Is the market seriously “bottoming out”… because, as far as we see it folks, we’re sitting pretty happy where we are!

BUT for the record folks, there ARE things you need to keep in mind come a market correction (whether you’re a current investor or just getting started)… so, what do you need to know?

We shared all of the exclusive hacks and current market news in our Melbourne LIVE Podcast last week… and we’re bringing the love to you right now!

 

Before we get into what you can expect out of today’s show, just a few quick shout-outs…

Are you coming to see us at the Melbourne Property Buyer’s Expo??

GET YOUR FREE TICKET NOW – Listener Discount Code: COUCH

Yep, if you want to learn heaps more about property investing, meet us and leave your wallet at home (in other words: spend ZERO money)… you should come and see us at the Melbourne Property Buyers Expo!

  • Saturday, 12:30 PM – Ben on How to achieve financial peace with five properties or less!
  • Saturday, 2:30 PM – The Property Couch with Greville Prabst, Executive Chairman of WBP Property Group and Judge on Nine Network’s The Block.
  • Sunday, 10:00 AM – Special Length Masterclass – Ben and Bryce with Special Guest to talk about Buying your First Home / Investment Property
  • Sunday, 12:30 PM – Bryce on 7 Ways to Build a Property Portfolio in a Changing Market
  • >> Learn more about each of the session here!

And…

 

Property Investors Council of Australia (PICA) is COMING TO YOU. Well, provided you live in Melbourne or Sydney! Meet and Greet includes a Q&A Session followed by a brief networking session. And old mate (and Chair of PICA) Ben Kingsley will be hosting!

Meet and Greet Sydney
Thursday 12 July 6:45PM – 8:30PM
GET FREE SYDNEY TICKET: PICA’s Meet and Greet

Meet and Greet Melbourne
Thursday 19 July 6:00PM – 8:00PM
GET FREE MELBOURNE TICKET: PICA’s Meet and Greet

 

BACK TO TODAY’S SHOW… What’s behind the headlines??

 

 

 

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