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496 | Don’t Sell the Goose That Lays the Golden Egg

 

In Episode 496, we’re back with a jam-packed Q&A Day!

Discover everything you need to know before investing in Victoria, from understanding the state’s “blowout budgets” to navigating the biggest risks that make buying in Melbourne a “2030 conversation.”

We also break down why the buy-and-hold strategy still works, even for single investors with lower incomes. (After all, would you sell the goose that lays the golden egg?)

Plus, learn why housing shouldn’t be linked to income and hear real data from a listener on his journey to a $1M passive income.

Tune in now for a jam-packed episode! 🚀 🚀

 

Free Stuff Mentioned

 

 

Questions We Answer:

Q1) Advice on Purchasing in Victora from Georgia  

Hi Ben and Bryce, my name is Georgia.

I want to say thanks very much for your work on the podcast. I really enjoy listening to it and find a very educational.

My husband and I currently live on the Gold Coast. We have been living in our principal place of residence, which is a house we bought about a year and ½ ago.

We also own an investment property on the Gold Coast, which we bought in 2018 and it was originally our principal place of residence but since we moved to our house, we now have that as an investment property.

We had really good returns from both properties over the last few years so we’re looking at releasing some equity from investment unit and then purchasing another property potentially in Melbourne.

Seems like Melbourne properties are in high demand at the moment. I’ve heard your advice on buying in Melbourne or Sydney if you possibly can so I think it would be along a good long-term investment and potential growth would be positive.

Possibly looking at the western suburbs because I say I’m a bit more affordable and I think that’ll be a popular area going forward. I know Victoria’s had some changes to tenancy laws so I was wondering what we should be aware of if we’re thinking of purchasing in Victoria?

I know there’s a lot of extra costs and compliance requirements so what would be your advice and recommendations of things to be aware of if we were looking at purchasing the property in Victoria for investment purposes?

Thanks again for your work. Keep doing what you’re doing.

Q2) Selling Options from Justin

Maybe start to talk more about the option of selling. Your podcast seems to advocate for a buy & hold, retire debt strategy.

Every podcast talks about buying a property, then cash out equity when the property grows in value to go again; however, this is not always achievable when someone has reached their serviceability cap.

As such, I think the option of selling to access equity to redeploy into another investment should also be talked about as a valid option to grow wealth.

You always mention that most investor stop at one or two investment properties, but I think this is more due to restricted lending to an individual more so than ones’ willingness to achieve more.

As a general lay person, I know enough to be dangerous but I can’t see how someone on a median income of 67k that own their own PPOR with half a mil to a mil mortgage would be able to service enough debt to afford more than 1 or 2 investment properties.

Q3) Buying a property to Assist in Purchasing Dream Home from Ruva

Hey Ben and Bryce love the podcast. You guys rock. My question is around rent-vesting. Apologies if this is already been answered or rather basic, but I’m struggling to connect the dots and understand the end game of this strategy in real terms.

How can buying a property or properties at lower value points and in areas of lower demand in bulk assist purchasing your dream home outright mortgage free and a blue chip suburb in 10 to 15 years time as I hear a lot on Youtube.

If values continue to rise across the country with a ripple effect from major centres outwards, won’t blue chip location simply remain at a map much higher value to those cheap and cheerful investments in mount random? May you please outline how this works in practice?

Are rent-vestors assuming that investing elsewhere will outperform their dream locations to then a mass enough equity to buy a dream home outright in the future? What does this actually look like?

Thank you so much.You guys are amazing. Love the podcast. We tune in and you bring so much value to the community. We appreciate it. Thank you

Listener Comment: Real life data you may find useful from Dean

Hi guys, I am 43 and have been investing in property for over 20 years now, my strategy has been to buy & hold, some of the properties I have owned have been cosmetically renovated and others structurally renovated over the years, my properties are located in Melb, Sydney, Brisbane & a couple in USA.

I currently own 12 properties. I work full time in a banking role and recently have other business interests outside of property.

I have run my property investment portfolio as a business over this time, and on a monthly basis i maintain a spreadsheet where I update my assets, liabilities & cash flow position.

The data is a real life example of the buy & hold strategy and could be of interest to you & your listeners.

Basically it shows the slow burn of building the first million net (17 years), however then jumps rapidly as the exposure to the market grows and the property market does the heavy lifting; $1m – $2m (10 months), $2m – $3m (27 months), $3m – $4m (38 months), $4m – $5m (9 months).

I’m not looking to be interviewed or my full name used, however thought this data might be useful as a real-life example of what you consistently talk to.

Regards,
Dean

 

Timestamps

  • 0:00 – Don’t Sell the Goose That Lays the Golden Egg 
  • 1:29 – Collingwood’s cooked it? 😉  
  • 3:57 – PICA Webinar Replay! 
  • 5:05 – Mindset Minute: “If you don’t change the direction you’re going, you’ll wind up where you’re headed!” 
  • 5:49 Q1) Advice on Purchasing in Victora from Georgia   
  • 8:02 – What to know before you invest in VIC  
  • 9:20 – The Greatest Risks to Investors  
  • 11:10 – Why does Melbourne look better in the long-term?  
  • 15:33 – Why buying in Victoria should be a “2030 conversation”  
  • 16:40 – Record level of debts & blow out budgets 
  • 19:28 – Will incentives for investors come back? 
  • 21:19 – Q2) Selling Options from Justin   
  • 22:37 – Folks, 60-80% return in months is NOT the norm!  
  • 28:30 – The BIG shift from passive to active investing  
  • 30:13 – “What if I don’t have 30 years left to invest?”  
  • 32:47 – Why sell the goose that lays the golden egg?  
  • 33:50 – You don’t have to be debt-free at retirement. Here’s why. 
  • 39:14 – Q3) Buying a property to Assist in Purchasing Dream Home from Ruva   
  • 40:51 – Why housing shouldn’t be linked to incomes 
  • 43:19 – What is modern Rentvesting?  
  • 45:02 – This is when property becomes a game of probability  
  • 46:26 – Blue Chip suburbs & long-term commitments  
  • 51:56 – Listener Comment: Real-life data from Dean   

And… 

  • 55:41 – Lifehack: Apple name drop in a flash ⚡ 
  • 56:58 – WMPN: 144 days for building approvals?!  
  • 59:47 – We’ve got an amazing guest incoming… 

 

481 | Property Market Outlook 2024

 

It’s everybody’s favourite time of the year…  

(No, it’s not Christmas. Or your birthday. Well, it’s actually OUR birthday month and we’re giving you a present: Our Free Suburb Report 😉) 

It is, however, that time of year when we bring you…  

Our 2024 Property Market Outlook!   

Using expert data from the past 12 months and our own countless years of experience, we’re covering…  

👉 The headlines we saw in 2023 (and the #1 biggest derailer the Gov didn’t expect) 
👉 Why did we see housing prices soar? (With economic insights)
👉 The Big Focus of 2024, plus the one critical number the RBA is waiting to change before interest rates drop

👉 Where will the plane land? Interest rates, inflation figures & the easing cycle  
👉 What investors want to see in business investment data
👉 The Supply Story: What data reveals about future sale and rent volume   
👉 The downside risks and critical upsides in 2024
👉 Will property prices grow over the next 12 months?  
👉 The Rental Story: Will the crisis continue?  
👉 The most challenged markets and what markets we predict to see growth in!  
👉 Rental Rises: Who are the price makers and takers today?      

Tune in now to hear us honestly assess the past predictions and forecast the future of Australia’s housing market! 

  

P.S. The Property Investors Council of Australia (PICA) needs support! As mentioned in “What’s Making Property News”, PICA is a not-for-profit organisation that gives property investors across Australia a voice. Any membership or donation helps. Become a member, donate or find out more today >>   

 

Free Stuff Mentioned

  • Our Birthday Present to You: Free Suburb Report 
    Go one level deeper than our Property Market Outlook. Learn how your suburb has performed and its changing community and properties. ‘Cos it’s our birthday month, we’re also giving it away for $0 (Usually RRP $40)   
  • Share what’s on your mind through our SpeakPipe: Leave us your raving reviews, little lifehacks and burning questions – and if we mention it on the podcast, you’ll get a free Start & Build course as our thank you 😊   

 

Timestamps

  • 0:00 – Property Market Outlook 2024 
  • 1:39 – Free Suburb Report  
  • 5:29 – Thank you, Muzzaaa (Let us know what’s on your mind & get a free Start & Build course!)  
  • 6:27 – Mindset Minute: There are two ways to use money… 
  • 7:14 – What happened in 2023?  
  • 10:07 – Why have housing prices soared?  
  • 11:37 – Last year, we got THIS wrong…  
  • 12:20 – The Water Wheel is slowing 
  • 14:44 – The big headline of 2024 
  • 15:07 – What we want to see in Business Investment data 
  • 17:15 – Are businesses and government still splurging on spending?  
  • 18:45 – The number that needs to change before interest rates drop… 
  • 21:27 – The drivers of demand  
  • 23:51 – Our assumptions  
  • 26:32 – The dangerous derailers  
  • 27:29 – The supply story: What the data reveals about future sales and rent volume  
  • 30:01 – New financing for investors & owner-occupiers 
  • 32:51 – The incoming storm: The #7 downside risks 
  • 35:38 – Here’s the exciting upsides!  
  • 37:06 – Buyer Demand across Australia 
  • 38:59 – Days on Market & Vendor Discounts: What do they signal?  
  • 41:32 – Use THIS sophisticated tool for predicting growth…  
  • 43:53 – Good signs for property prices  
  • 45:31 The rental story: Will the crisis continue?  
  • 48:12 – The most challenged markets 
  • 50:29 – Let’s consolidate: Big 4 bank’s outlook & what markets we predict to see growth 
  • 53:38 – The Commuter Belt is driving… 
  • 54:44 – Why Melbourne is a challenged market  
  • 58:56 – Predictions for Sydney  
  • 1:01:38 – Our advice for 2024  

And… 

  • 1:05:44 – Lifehack: Sleep is the best meditation. Here’s how to ease yourself into it.
  • 1:09:57 – WMPN: Help give investors a voice through supporting PICA 

 

363 | Exodus to the Regions – Will this Trend Reverse? – Chat with Dr Nicola Powell

This data is hot off the press folks!! 🔥🔥🔥

It’s no secret that property prices have grown quite a bit lately, but recent data is showing that we’re breaking records!

Here’s a snippet from Domain’s media release just a week ago:

September Quarter 2021 House Price Report shows Australian house prices experiencing a historical rate of growth at 21.9%, the fastest annual rate of growth on record with median house prices at almost $1 million nationally.

But…what does this mean for both sellers and buyers? Is this likely to stay or are we going to see a crash in the new year? Is this growth even sustainable with our current economy?!

AND…

Will the Regional Exodus Backflip?!!

There are heaps of moving parts here and we know it can get a little overwhelming…

So we’ve outsourced and brought in an expert to help us out.

And yes, we’ve been teasing you about her for the past few weeks so bring on the drum roll please…

🥁🥁🥁

Joining us on the show today is none other than Dr Nicola Powell, Chief of Research & Economics for Domain and one of Australia’s leading property market experts!

With more than 15 years’ research experience that spans academic, government and private sector, Nicola is the leading force behind Domain’s regular data reports that keep the Australian public up to date on what’s happening in the market.

Safe to say that we’re in good hands folks.

Tune in to find out more!

 

Free Stuff Mentioned

 

Here’s What We Cover…

  • 1:57 – Mindset minute: It’s better to hang out with people _______ than you, pick out associates whose __________ is better than yours and you’ll _____________.
  • 3:09 – Meet our first-time special guest, Dr Nicola Powell!!
  • 4:00 – How did a science doctorate degree morph into a career in economics?!
  • 5:58 – How she translate hard cold data into behavioural logic and patterns
  • 8:33 – Nicola’s Money Story and what she’s telling her kids now?
  • 11:50 – How did her conservative upbringing shape her money management habits?
  • 13:38 – Where are we RIGHT NOW in our Property Cycle?
  • 14:42 – GROWING AT $1,200 A DAY?!
  • 15:00 – Is this record growth rate expected to continue?
  • 15:46 – Is there any good news from the September Quarter Housing Data?
  • 18:37 – Sydneysiders: Forever Renting or Cross the Borders
  • 20:54 – What has the pandemic accelerated for Sydneysiders?
  • 22:57 – The shift to a different property type…
  • 27:13 – How did the Most Lock-downed City still have a Record Price Growth Rate?!
  • 28:54 – Will the Regional Exodus Backflip?!
  • 30:21 – The biggest social experiment that has proven one key thing…
  • 31:15 – What’s the new buzzword of the pandemic?
  • 32:07 – A little nugget on Price Growth trend!
  • 33:40 – An Aging Population and Its Impact on Supply
  • 36:00 – Areas where they’ll be a risk of a reversal in property price…
  • 39:00 – Is APRA’s Macroprudential changes necessary to influence Demand?
  • 40:53 – When will interest rates start to rise?
  • 42:00 – Which of these two events will trigger the interest rate hike?
  • 43:45 – (HOT) Markets around Australia with still rooms for growth!!
  • 46:08 – Household size and misallocation of housing stocks in Australia…
  • 47:00 – What needs to be disrupted to improve affordability?
  • 48:41 – The Stamp Duty Debate: Lump sum or Annual Repayment?
  • 50:17 – Surprising Find from Domain’s Submission on Housing Affordability…
  • 52:00 – Residential property as an investment class to store family wealth – Yay or Nay?

And of course…

  • 56:37 – A camping trailer life hack that can potentially save your relationship! 😉
  • 59:09  – Ben’s quick update on RBA’s view on their Bond Program

 

 

359 | Locked Down & Locked Out: Buying Property In A Shutdown State! – Chat with Leah Calnan

Is property sliding under the pressure of continual lockdowns?!

Folks, it’s no surprise that Victoria’s extended lockdowns (and indeed lockdowns happening right across the country) are having unintended consequences to property buyers, sellers AND renters.

With Melbourne spending more days in lockdown than ANYWHERE else in the world, it begs the question: How can you buy property in a Shutdown State?!

Here to unpack all this, as well as the Winners & Losers of legislation changes, is returning guest Leah Calnan, President of Real Estate Institute of Victoria (REIV). Leah has served as REIV President since October 2019 and during this time has seen SIGNIFICANT disruptions and changes to the Victorian property market and Tenancy Act. She has over 24 years’ experience in property management, is the sole Director of Metro Property Management and, of course, is considered one of the industry’s most dedicated, accomplished and senior Property Management practitioners in the country.

Leah is about to give you a behind the scenes look at the stark reality of a property market Locked Down & Locked Out, including the tangible impact this has on property investors, in conjunction with the “VCAT Mess” that’s currently unfolding here in Victoria.

So, is it all doom and gloom? Is it simply Too Much For Too Long for Victorian investors? Is “The Great VIC Exit” fast-approaching?!

Listen now to learn How To Buy Property in a Shutdown State & stay informed of the impact current lockdowns are having on the broader property market.

 

Free Stuff Mentioned

 

Here’s What We Cover…

  • 02:13 – FYI: The dark spot on Ben’s forehead…
  • 04:46 – What do you think about this Mindset Minute?!
  • 06:50 – Meet Leah.
  • 07:32 – The Controversial Question we just had to ask!
  • 10:09 – Leah’s first property & money management story…
  • 16:08 – Money Advice for teenagers!
  • 17:14 – Some of the ‘highlights’ as REIV President…
  • 19:15 – Winners & Losers: Legislation Changes!
  • 20:01 – Will these Unintended Consequences further drive investors out of Vic?
  • 21:43 – Which legislation would Leah most like to repeal?!
  • 23:33 – The VCAT MESS!!
  • 26:16 – Have landlords cracked down on the type of tenant they get?
  • 27:42 – Has the legislation change lead to longer first term tenancies?
  • 29:00 – Locked Down & Locked Out!
  • 31:13 – One of the biggest challenges with Victorian lockdowns…
  • 34:09 – What HAS opened up again for buyers?
  • 38:32 – How agents keep potential buyers safe…
  • 40:16 – Can you inspect properties in regional Vic if you live in Melbourne?
  • 42:12 – Is there a “Super Saturday” coming between now and Christmas?
  • 45:53 – The Best Property Management Tips!
  • 48:30 – Why You Should NOT Self-Manage Your Property!
  • 53:28 – How to measure your wealth!
  • 55:25 – What’s Making Property News!?!
  • 55:38 The Scalpel Has Landed: Macroprudential Change Is HERE!

 

 

Episode 358 | Too Much Risk? Australian Property & Economic Update – Chat with Nerida Conisbee

Breaking news just in on the property & economic front, folks!

There’s clearly quite a bit going on with the health crisis, soaring property market and… just announced this week… an indication that a tightening of lending might be coming sooner than we think!

Despite price growth in the current market being led primarily by owner-occupiers, the risks around rising household debt may mean that APRA and the financial regulators will step in to prevent the build-up of future risks to the broader economy…

The question is: If they’re going to pull the handbrake, What Would This Look Like and WHEN Would It Happen?

Here to unpack all this, as well as the latest Australian Property & Economic Update is our good friend Nerida Conisbee, Chief Economist at Ray White.

Now, if you’ve heard Nerida’s data-driven insights and wisdom on the show before, you might’ve noticed she’s had a little change in title from Chief Economist at the REA Group… And if you haven’t heard from her before (you’re in for a real treat!) or simply need a refresher: Nerida is a highly regarded economist, with a specific expertise in residential and commercial property. She is currently the MOST quoted property commentator in Australia, the third most quoted economist and a sought-after public speaker, writer and columnist with more than 20 years of property research experience throughout Asia Specific.

So, if you want a PRECISE update on property and economic news here in Australia (and where it’s looking to go from here), then please listen now to get the gold & stay informed.

 

Free Stuff Mentioned

 

Here’s What We Cover…

  • 00:40 – Block your ears non-AFL fans 😉
  • 03:28 – Try this word instead.
  • 05:24 – Meet Nerida…
  • 06:04 – The change & data leak
  • 07:36 – Never Before Revealed: Nerida’s Money Backstory!!
  • 10:46 – Does she carry this through with her own family?
  • 13:24 – Nerida’s property story
  • 14:33 – The current economy – What’s going on?!
  • 16:27 – What will likely unfold in the December quarter?
  • 16:57 – What picks up when we come out of lockdown?
  • 17:12 – The Big Challenge: Iron Ore Prices
  • 17:49 – Where will this show up most in the Aus economy?
  • 18:48 – What might happen if we see higher hospital rates?
  • 21:25 – Australia’s Economy­ – What might happen?
  • 22:38 – The Lack of Migration: How Problematic Is It?
  • 23:39 – The Hot Topic: INFLATION
  • 26:00 – Too Much Risk!?!
  • 26:18 – A Trillion Dollars In Debt: Australia’s Debt Hole
  • 26:47 – How are we going to pay that debt back?
  • 28:15 – Property Update!
  • 29:45 – Breaking News: Josh Frydenberg’s Announcement!
  • 30:08 – Household Debt — Where is it currently at?
  • 31:25 – What does Nerida see happening with the regulations?
  • 35:54 – How do you stop people taking on too much debt?
  • 38:30 – What’s happening with First Home Buyers?
  • 41:46 – What you need to know about immigration
  • 45:04 – The Luxury Market: How is it performing?
  • 46:34 – Listing Volumes – What’s happening now?
  • 49:00 – The Future of Commercial Property in CBDs
  • 52:14 – Unemployment Numbers: The Risk Factors
  • 55:21 – How to NOT save $250! (interesting way to look at things…)
  • 56:28 – Pain & Gain: New Data From CoreLogic

 

 

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