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Episode 287 | Why buying a Harley derailed Bryce’s property portfolio & the Ten Tips we’d tell our 20-something selves

If we could go back and invest in property all over again, what would we do differently?!

Well, for one, Bryce probably would’ve have bought a Harley Davidson!! (Yep)

Folks, this is exactly the stuff we’re unpacking today – the Top 10 Tips we’d tell our “20-something” year-old selves BEFORE we purchased our first property!

To give you an idea… Ben purchased his first property at 23 & Bryce at 24. So, if we fast forward a couple of decades to where we are now – two of Australia’s leading property experts, each with a multimillion-dollar property portfolio — what would we go back in time and tell ourselves? ‘Cos, let’s be real, it was anything but a “walk in the park” – and we both made some really stupid and regretful decisions to get where we are now! And we’re sharing these, ahh, “rookie errors” with you so you can AVOID them yourself … or — if like us, you didn’t know you were doing the wrong thing – help you course-correct quickly!!

And folks,… we’re NOT proud of how we’ve learnt some of these tips. Sure, some of us have to “learn things the hard way” and, while it’s all “part of our journey”… we really suggest you learn from our “if only we knew this…”!

Almost always, wealth creation (or any success for that matter) comes from modelling those who’ve achieved the results you’re after… but here’s another bonus tip… wealth creation (or any success for that matter) comes much easier when you learn about the mistakes SECOND-HAND 😉

Enjoy the Top 10 Tips — we’re super excited to share these with you, even we feel a bit vulnerable doing it!

 

As Ben mentions, if you’re a property professional keen to showcase the coalface of the property market so folks out there can see that, yep, the property market IS still alive and happening, simply update your photos on socials and use the hashtag #OZPropertyALIVE (feel free to tag us too… especially if you want our eyeballs on it!)

And remember, leave us a star-rating and review of ANY kind here for your chance to win FREE ACCESS to our brand new online course, Start&Build! (we’d obviously prefer 5-stars, but if that’s not how you feel about us, no worries!)

Congratulations to this week’s winners: Kim Schultze and Jarryd Hennequin! Please get in touch with us at info@thepropertycouch.com.au to claim your free course!

 

Free Stuff…

 

“What’s Making Property News” Links

 


 What we Cover in Today’s Episode…

 

And of course..

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

 

 

Episode 286 | Best Case & Worst Case For Property, PLUS what’s making Property News?

You’ve probably heard Commbank’s “warning” that property prices could drop by “a third” as a result of the unemployment levels due to COVID-19…

You’ve probably ONLY seen this scary number come out of their March Quarter 2020 Trading Update, though right?

Probably because it’s the ONLY number being reported in the headlines!!!

But what’s really interesting is there’s a whole lot of OTHER scenarios that the Commonwealth Bank of Australia also modeled… and… guess what? Yep, you’re only getting the clickbait answer!

So, in today’s Q&A, we’re going to let you in The Best & The Worst-Case scenarios, and what Commbank actually believes is most likely to happen with property prices, according todata.

After that, we’re going through a fair few questions that have also come in over the last two weeks!

Plus, Ben’s also introduced a BRAND-NEW SEGMENT — “What’s Making Property News” — and you can just imagine how excited he is, right?!

 

We tick off quite a few boxes in this episode folks, so definitely tune in if you’re keen to hear what we can likely expect between now and 2022, and also get some current property, finance, money management and COVID-19answers!

 

Free Stuff

Or fill in the form below and we’ll send you the free PDF on COVID19 Property Risk Regions:

Free resources: COVID19 Risky Regions

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More Free Stuff From Ben’s Segment

 

The Questions

Question about withdrawing superannuation from Sabrina
Good evening. I really admire you both. I listen to your podcasts. I might don’t get chance to listen to every single one, but I love you guys and try to listen whenever I can. I need your advice please.

My situation is, I have some buffer savings in my offset account around $25,000 and me and my husband both have jobs in this situation. But I am working less hours because I am not sending my son to childcare. The monthly earnings will keep us going but very tight and I don’t know when I can send my son to childcare again.

So, my question is am I eligible to withdraw $10,000 superannuation? Because my hours has been reduced significantly (my company is giving me enough hours but I have elected not to work like before because of my son) so can I apply for super and what are the pros and cons if I withdraw super? I am just scared if I will run out of money and I didn’t apply for it.

 

Questions about cross-colleterialisation and accessing equity from Danielle
Hi Bryce, I have just started reading your book I bought last year “The Armchair Guide to Property Investing”. I find it quite interesting and a few similar matters are bought up like in the barefoot investor. I have read a few times not to have your loans with one bank so my first question is how do you use your equity you have with that bank to purchase another investment and get the loan with another bank? I can’t seem to find much information about it and do not understand it, but my partner has tried to do it and his broker seemed to think it was too hard, but reading it can be done? We have 6 properties between us. I have 2 and Brendon, my partner, has 4. We want to invest more — my aim was a property every two years until we reach the time, we want a new house for ourselves to live in; in the country or a shack.

My second question: I have read a lot about don’t cross-collaterise your loans. I felt like I did this and don’t see how you don’t do it if you’re using your property as security and the equity in it? Then yesterday I read an article, and it says if you have standalone loans for each property that isn’t cross collaterised — it’s only when you have all your properties and loans as one? Is this correct?

My third question is: my partner is about to pay off his first house and own it; the one we currently reside in. He wants to know, if he pays it off, does he get the deed to his house or not because he has used it as security with his other three investments?

 

Question about the planning process from Mazen
I’m up to Ep 120 of The Property Couch podcast and just read chapter 1 of your book. You have turned my mindset about property upside down, in a positive way! One thing I need to get my head around before moving on to chapter 2 is to actually try work out a monetary value of my future goals so that I can put a plan together to achieve them in the timeframe. I’m a bit unsure about where to start and what to consider when calculating how much money I will need (e.g. questions running through my mind… I want to travel “this” often and so I need “this” much money, I want to live close to the beach by “this” age so how much would I need for “this”, etc) Am I overthinking it? Thanks and look forward to hearing from you!

 

Question about LMI vs Renting from Hayley Robinson
What do you think is better? Paying LMI or rent when getting ready for buying a first home?

 

Question about Procrastination and Choosing the “right” debit/credit cars from Aaron
I’ve been trying to get all our debts/credit cards sorted before getting property investment advice, and feel like I’m just procrastinating now…

 

Question about Inflation and Passive Income Target from Grant
How much in today’s money do you need in assets to get $2k passive income?

 

And of course..

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

 

 

Episode 285 | “Catching a Falling Knife” Is investing in Commercial Real Estate a good idea right now? – Chat with Scott O’Neill

Is the “home office” the future office? Coronavirus has changed the face of many businesses – entire companies are now working from home, retail shops have switched to online selling and others, like cafés and restaurants, have simply “shut up shop”, either temporarily as they wait for the storm to pass, or permanently.

So it begs the question… is investing in COMMERCIAL property still a good idea?

Well, returning to the Couch is Scott O’Neill, Founder and Director of Rethink Investing, a buyers agency that specialises in both commercial and residential real estate! Yep, we first heard from him back on Episode 230 | From Residential to Commercial Investing: How this guy quit his Day Job at 28 … and  today we’re in for a very special treat as Scott walks us through the key themes unfolding in the office, retail and industrial space… PLUS, he gives us his expert opinion on the “new normal” in commercial real estate, so our folks interested in investing in commercial property know what to aim for, what to avoid and how to find the right commercial properties!

Oh, and Scott even manages to sprinkle in a few nuggets of gold on residential real estate too!

 

This is a fascinating and knowledge-backed episode that really sinks in a few key messages – and not just for our commercial property investors, but also for the rest of us who simply want to navigate this coronavirus and learn investing best-practices!

 

Free Stuff

What we talk about in today’s episode

 

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 196 | Q & A – Negative Gearing Changes – Should I Still Invest in Property?

“Labor risks $12bn housing hit over ending negative gearing” — if you’re like us folks… this headline has us all concerned!!

And the concern didn’t stop at the headline.

As we read on, the full news article, published by The Australian on the weekend, highlighted that the $32 billion plan to end negative gearing would — quote — lead to a fall in new housing construction of up to 42,000 dwellings over five years and 32,000 fewer jobs across the country, according to independent modelling — end quote.

Yep… that’s a drop in a whole lot of new housing construction (ie. supply) AND just a-bit-more-than-a-few losses (up to 32,000) in jobs!!

Folks… this is crazy stuff.

And those stats aren’t the only ones coming out of recent independent research digging into the numbers of what’s likely to happen if negative gearing’s ditched.

So, today we’re looking at a few of the worst-case scenarios from two different reports (the links to both of these are further down in the show notes) and unpacking — with both a short term and long term view — how this change to negative gearing might affect the property market and those investing in it.

But negative gearing changes — and the possible consequences on housing prices and for first home buyers — isn’t the only question we’re answering today! We’ve got plenty of gold on how to time your exist strategy, retiring debt and the right asset to invest in!

 

Oh, and if you’d like the Geospatial Heat Notes — the heat map that shows the Compounding Annual Growth in Median Value for Houses from 1974 till the end of 2017 that is sourced from the Valuer General data —  you can get them here.

 

Back to today’s Q’s…

Question about Negative Gearing Changes from Shadi:
Hey Bryce and Ben. Thank you for all the information and for all the podcasts you provide. Apologies in advance if this question has been answered in previous episodes. I’ve been binging myself since episode 1 a few months ago, and am not quite up to date yet. I just have a question specifically about the abolishment of negative gearing and the impact it will have on first time investors. I’ve been looking to invest since listening to your podcast, and am interested to hear how this will affect my first purchase — whether or not it will just be a short term problem that effects cash flow or if it will have a long term effect, especially when entering the market.

 

Question about Your Exit Strategy from Anne-Marie:
Hi guys, this is Anne-Marie in Victoria. I’m 56 and my husband is 51. I started listening to you many years ago after we had our 7 properties. Our last property was 3 years ago. There all on fixed term interest only, which makes no offset available to them. And we’ve paid off our home, which is worth 1.1 million (1 of the 7 properties). It takes us $13,000 a year to hold all the properties, we just put our tax in, which is amazing. So property has done really well for us, and the mortgage we have on all of them is about 2.5 million, with domain value being low sitting at $3.9 mill, and high $5.2 with middle there all about 4.6 million. I want to start going into doing less hours at work — I’d like to retire on a passive income in maybe 4 years’ time. How do you transition to get the passive income we’ll need for retirement without too much of a tax liability? I paid about $10K in tax this year and I really don’t want to be paying a lot of tax while I’m getting to this point. Can you give me any pointers? And I can’t have an offset account as I said. I’d like some advice on this.

 

Question about the Right Asset for a First Home Buyer from Carrie:
I have a question about the best type of asset you should invest in. I’m looking to buy my first property, which I’ll live in initially. I have a budget of $750K. I’ve been looking at 70s and 80s free standing villa units in small blocks of 12 – 6 in Melbourne’s east. This puts me in middle ring suburbs around 20km from the city, with a land size of 350sqm. It’s a good balance between decent landmass without being out in the sticks. Alternatively, I could by a 2bdrm apt in an older, low density block — the type with only 2 or 3 stories closer to the CBD. Are either of these good investments? And which of the two is better? Or is there anything else I should look into. Love your work guys, keep bringing out those podcasts! Thank you

 

 

The Articles Ben mentions:

The Australian Article — Labor risks $12bn housing hit over ending negative gearing

Housing Industry Association (HIA) — Media Release

 

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