Let’s face it…

If you’re looking to get into the market, you’d want to property market to slow down.
If you’re already in the market, you might be hoping for this trend to continue.

Whichever side of the coin you are in, you’d be asking the same questions…

When will this end…?

Will median price go up to $5M in the next 20 years?!

How is this even possible… what’s driving it??

Yup, we know it can be unbelievable so we will be tackling this head-on in our Q&A Episode today (It’s the 1^st question in fact and Ben got quite heated up too)

That and also a few other things such as off the plans, crypto and property, why would you sell, formal qualifications for property professionals and heaps more!

It’s a Q&A Episode after all 😉

Enjoy!

P.s. Make sure to tune in to Ben’s ‘controversial’ market prediction at the end!

Q’s we answer further below 👇

Free Stuff Mentioned

• Free Book – The Armchair Guide to Property Investing – Get your Copy here
• Free eBook – Make Money Simple Again – Download a Copy here
• We are looking for two talented individuals to join our team! If you’re passionate with property and keen to join a fun and dynamic team, learn more here: https://empowerwealth.com.au/career-with-us/
• 363 | Exodus to the Regions – Will this Trend Reverse? – Chat with Dr Nicola Powell – Tune in Here
• Do you have a question as well? Let us know on SpeakPipe here

The Questions We Answer

Question from Shannon about Will Properties Keep Going Up?

Hi guys, Firstly I have to say I’m a big fan of the podcast and your book, The Armchair Guide to Property Investing.

I have gotten a lot of value out of your podcast and feel like I am much more confident picking the right type of investment property and avoiding investment stock type properties.

I wanted to ask a question about your book.

You outlined some quite interesting case studies for different types of investors. I fit into the category of a rentvestor myself. I noticed the portfolio plan is made up of 3 properties and over a 40 year period the portfolio grows in size from around 1.2 million to 9 million over the 40 year period.

I was wondering if you can comment on why you think its safe or reasonable to assume that the property market will 8x over the next 40 years because that would suggest each property is worth nearly 3 million dollars which is something I struggle to think is reasonable to assume, given that property prices relative to income currently are at the highest ratios historically.

I can understand how property prices have grown to be so high given we have most households supported by two incomes instead of one and interest rates are at historic lows but I have doubts about whether this is sustainable to continue.

I wanted to get your advice on how things look over the next 20-30 years before I jump in and if you can comment on your reasoning for the above that would be appreciated!

Thanks for all the great content!

Recommended episodes for Shannon

• Ep 358 | Too Much Risk? Australian Property & Economic Update – Chat with Nerida Conisbee
• Ep 302 | Back To The Future: Lessons From 50 Years At The Top Of His Game – Chat with Scott Keck
• Ep 313 | Investing Since 1967: How This Legend Outperformed The Marketplace By A Whopping 7.1%! – Chat with Jock Bing

Question from Coban about When will Off the Plan be considered ok?

Hi fellas great show.

Hey Bryce and Ben, I’m a new listener – currently at episode 100 so if you answer this ill hear about in in 2022! . I have read both your books and in the pervious 18 months my partner(21) and I(25) have implemented your Money smarts to secure an investment property, Small shares portfolio and plan for a wedding and putting my partner through university. I recommend 1 person a week listens to your podcasts as it has changed the way I look at financial freedom.

After 100 episodes, my question for you is simple. Is there a place within your go to strategies where an off the plan purchase would be considered? The reason I ask is because I see a lot of spite towards them (understandably in high/med density living) however I believe that they can provide needed cashflow boosts for short term prosperity. I will use my situation as an example.

I’m a sailor in the Royal Australian Navy and my partner is looking to study paramedicine starting next year, based in Sydney. We have a combined $2000 a month in surplus at the moment with a combined salary of $130k. We managed to leverage ourselves into a $515k off the plan townhouse in Nowra, NSW with an estimated growth of 5% and a rental yield of 5.3% with minimal savings and taking use of the FHOG and First Home Buyer Assistance Scheme (FHBAS). Admittedly we have structured ourselves to have a loan at 101% LVR  but buying an off the plan property allowed us to hold the property thanks to depreciation and the FHOG whilst my partner goes to uni with no income for the next 3 years (my income will remain $86,000 after tax).

We had to lose out on some land size to achieve this but noted that the property was in a great location with a high turnover in terms its demographic change (was previously government housing area- now sold off) I understand everyone is different and that is the beauty of financial planning and investment advising, but for people starting of in property, can off the plan properties outside of high/med density living provide a lower entry point to everyday people?

I’m very passionate about seeing people use their money to benefit their future rather then the present, so I’d also ask, do you have any entry level jobs going?!

I have been in the navy since 17 and we don’t get many qualifications, so what recommendations for study paths would you have for someone aspiring to help people reach their financial goals?

Additionally, in a defence force space we have a lot of spruiker who I notice take advantage of our benefits such as FHBAS, FHOG, The Defence Home Ownership Assistance Scheme (DHOAS), Home Purchase Assistance Scheme (HPAS) and Home Purchase or Sales Expenses Allowance (HPSEA) to put young defence members in house and land as well as high/med density living.  Maybe you could provide an episode for the 26,000 + active servicemen and women to discuss the pro’s and con’s of these structures?

Best of Luck to the Hawks in 2022 – the 4peat will return in 2022 under Sammy Mitchell!

Ohh and best of luck to you guys too. 

Recommended episodes for Coban

• Ep 257 | The Exception To The Rule When It Comes To Off The Plan Properties & House And Land Packages
• Ep 44 | Q&A – Building cash reserve, Next-door suburbs, Property professionals, Offset accounts, Buying at a premium, How to be a BA & Renovating for Profit
• Ep 293 | What Property To Buy & Practical Tips For Asset Selection

Question from Juan about Technology for Money & Property Management

Hi Ben,

I just came up with these questions.

I hope they can help you with your podcast:

1. Is there any particular technology (app, website or any other) that can help us better track our money management?
2. Is cryptocurrency change (or going to change) the way we may invest in properties? And if so, how?
3. According to your experience, when is the best time (or age) to start thinking about property investment?

By the way, I just started listening to the exodus to the region’s episode and I really enjoyed the insights of Dr Nicola Powell.Keep up the good work.

Recommended episodes for Juan:

• Ep 191 | Seven Steps to Make Money Simple Again
• Ep 151 | Is Bitcoin a good investment and what are the Final Budget Changes on Tax Depreciation?
• Ep 356 | Secrets Behind A $250M Net Worth – How This Investor Did It! Chat with Fred Schebesta
• Ep 361 | When Is It Too Late To Get Into Property?

Question from Stephen about Why Sell?

With several investment properties returning healthy margins & interest rates being as low as they are … Incentives to hold out property sales for greater returns (given interest rates are not deemed to rise for another 12 months ).

General question is >>> Why sell now if asset capital is rising??

Recommended episodes for Stephen:

• Ep 080 | The Four ‘D’ words that equal a motivated seller!
• Ep 165 | Royal Commission’s Role in the Lending Sector and Q&A on Improving Loan Serviceability, Sell v Hold Strategy and Investing in Shares
• Ep 220 | Sell or Hold? The $64 million dollar question.
• Ep 283 | Buy & Hold vs Buy & Sell – which strategy works best in WA? – Chat with Damian Collins, President of REIWA

Did you know…

Back in episode 296, Bryce briefly mentioned the telescope vs microscope analogy and how it applies to picking an investment-grade location.

Fast forward to today’s episode… (66 weeks later)

We’ll be answering ONE of the questions using the same analogy. With a little twist of course 😉

So… which is a better view to take when it comes to property investing and why?

And… are you curious how the same concept can be used for two entirely different scenarios?

If that doesn’t entice you, what about questions relating to equity release, what NOT to do when seeking finance and some tips for our younger investors?!

There’s something for different groups of our community today.

Tune in now for the gold!

Q’s we answer further below 👇

Free Stuff Mentioned

• We are looking for two talented individuals to join our team! If you’re passionate with property and keen to join a fun and dynamic team, learn more here: https://empowerwealth.com.au/career-with-us/
• Start & Build Workshop, learn how you can build a multimillion-dollar property portfolio that creates $2,000 a week in passive income here – https://thepropertycouch.com.au/startandbuild
• Bonusisode with Julia Hartman! Tune in here.
• Free Report: The Top 5 Tax Rules Every Property Investor Must Understand – Download here
• (NSW only) Laws for short-term Rental Accommodation – Here
• CoreLogic Home Property Value Index – House and Unit price – Here
• Do you have a question as well? Let us know on SpeakPipe here!

The Questions We Answer

Question from Alan about Best Time to Release Equity.

Bryce and Ben, I’d like your comments on something weighing heavily on my mind.

My wife and I are very fortunate to have bought into Schofields in Western Sydney prior to the 2021 explosive growth period. We paid $740,000 in April 2020 for a 4 bedroom house on a big plot of land following all of the Property Couch “tick boxes”. Our Mortgage is just under $500k.

Our plan had always been to buy a family home, keep our buffer in an offset and pay down the mortgage to under $350k before taking on another loan for investment. Progress has been good and I thank the lord for Money SMARTS everyday.

Fast forward to September 2021, the growth has pushed many of my neighbours to sell. We are seeing astronomical numbers. Properties up $300k-400k plus since April last year, new suburb highs being set on a monthly basis and more and more agents knocking on the door pushing for stock. I know that this has increased the value of our property through pure osmosis, and we are now unsure of how to plan our next purchase.

We want to hold on to this property and NEVER SELL.

We had wanted to buy another property within the Golden Hour Commute region, but the level of debt required is now nauseating. Everyone I talk to is now rushing to the regions and that too concerns me.

The question(s):

• Is now the right time to pull equity from the house, take on more debt (earlier than planned) and make it work for Sydney?
• Is there confidence in the regional markets where things are more affordable?

Thanks in advance, your loyal listener.

Recommended episodes for Alan

• Ep 69 | Q&A – Where is that sweet spot between Growth and Yield, investing in metro or regional and more
• Ep 180 | Building A Portfolio in a Changing Market – LIVE Q & A in Melbourne
• Ep 295 | How To Reach The Summit: Achieving $2K Per Week in Passive Income – Q&A
• Bonusisode with Nerida | A Permanent Shift To Regional Locations?!

Question from Wayne about Where to buy for retirement

Hi fellas great show.

My wife and I are both in our very early 50s.

We live in Brisbane in a house that’s worth about $1M with no mortgage. We also have a house on the North QLD coast which is worth probably about 420-450 thousand which is currently rented out for 350 a week which we have no mortgage on that, both places are owned outright. We have no children living at home, no debt, don’t have any car loans, we earn in roughly about 65,000 a year with some potential if we wanted to do overtime to earn more but we just chose not to at this stage.

Our question is, we are looking to retire down to the Southern end of the Gold Coast in about 8 to 10 years and we’re not sure whether we should buy something there where we want to live and have somebody in there renting it and with our incomes, we could help pay that house off in quick time or, do we buy another place in Brisbane and rent it out and when it comes times for us to retire so either or of two of the houses then buy a unit down there outright.

Anyway, I hope you can help me out.

Recommended episodes for Wayne

• Ep 295 | How To Reach The Summit: Achieving $2K Per Week in Passive Income – Q&A
• Ep 353 | What’s Coming Next? The Future of Australian Property! – Chat with Simon Kuestenmacher
• Ep 355 | Zero Debt & $2,000 A Week In The Bank: HOW?!

Question from Mel about Tips for Young Investors

Hi Ben and Bryce love the show. You guys have been amazing.

I actually bought your property course and I have been doing it with my dad so every weekend we get together and we do a couple of hours, we do one or two modules and have a chat about it, it’s been lovely. Me and my dad are buying an investment property together.

He’s in his 60s and I am in my 30s it’s enjoy the process of doing it together but also for all of the beautiful reasons that you want you know for a time in and income and all of that so I guess I just wanted to know if you have any hot tips for young players remembering that he’s in his 60s, I’m in my 30s, we’ve got 70K saved up, we’re gonna go to a regional town coz that’s all we can afford and look up buying a house’ cause I think that might have a better growth than an apartment say.

Is there absolutely any tips you wanna give any hot tips for young players that, anything at all. Your advice would be appreciated, something we could think about or not think about that would be great. Thank you guys!

Recommended episodes for Mel:

• Ep 46 | Q&A – Things we would have done differently, Buying sight unseen, Tax and purpose of property, Investment grade in regional centres and Joint ventures
• Ep 116 | Q&A – How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA and more
• Ep 323 | Rising From A Decade Of Addiction: The Phenomenal Property Investment Story You Have To Hear To Believe – Chat with Sam

Question from Phillip about What You Shouldn’t Do with Finance

One of the suggestions was what you shouldn’t do when starting to look at finance. Too many people focus on what you should do, and for those uneducated you can make mistakes without the right advice.

Recommended episodes for Phillip:

• Ep 164 | Q&A – How to Avoid Poor Loan Structure
• Ep 279 | How To Master The Pillars in Pandemic Times
• Ep 306 | The Game of Loans: How To Find & Finance An Investment Property