Money SMARTS Archives - Page 16 of 16

122 | Q&A – A Transitioning Market, Money, Habits, Tax Deductions and What It’s Really Costing You

By Ivise June 29, 2017 in Podcast, Q&A

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It’s that time again … a few questions from you and a few answers from the boys!

Oh, before we give you a tiny tease about today’s podcast … just a huge shout out for being SO supportive about our technical glitch last week. Our inbox was flooded with all of your emails and concerns—please know that our hearts’ burst (with love) and we missed you all too! We really did. But we’re back and better than ever this week. (With an epic guest next Thursday we’ve got The Stig running the server like a pro.)

Right … to today’s Q&A! It’s the time of a transitioning market. So things are starting to balance out in the property scene. The boys will fill you in on the nitty gritty; but, guess what? This is an empowering time for buyers!

Think Question. Think Answer. Think Golf. Blame Bryce for his legendary metaphors.

Question on debt reduction from Allen:

I am trying to get into a better money management system and have just a few questions.
I currently have 1 personal loan of $22,000 and 2 credit cards both roughly $5000 each. In your previous podcasts about credit card management and The Money SMARTS System you suggest paying off whichever debt charges the most interest first. Well, the personal loan charges more than the credit cards in the long run and has more to pay off although the credit cards are of smaller amount but it is still high, which would you recommend paying off first?

Question on how to work out a property’s true value from Laura:

When monitoring an existing Investment Property’s capital growth, and trying to do this in an objective, non-biases and reliable method, can you please compare and contrast—get the advice—just relying on a real estate agents sales appraisal vs. a proper bank valuation?

Question on Negative Gearing and Tax Deductions from Glenn:

My wife and I bought a house (PPOR) in Croydon Vic 2.5 years ago, which has since appreciated by nearly 20%. We are looking at buying our first investment property this year, around mid-year. We had a child last year, my wife will be going back to work part time mid-year and is currently on maternity & LSL. My salary will be about $100k more than hers.

Will it make sense to get the investment loan out in my name so that the losses can be claimed against my greater income? For some reason she is apprehensive about this idea, which I’m not sure why because we are married anyway and the titles can still be put in both our names even though the finance is in my name. Is this worth considering this or should everything just be in both our names, joint loans the like?

And here are the Free Resources mentioned in today’s podcast:

Property Research Site | LocationScore – Register your interest here
Money Magazine Article – Order an online copy here
2016 Census Results – Find out more here
The Game of Property Investing – Find out more here

If you like this Q&A episode (A Transitioning Market, Money, Habits, Tax Deductions and What It’s Really Costing You), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://thepropertycouch.com.au/topics/

077 | Right Strategy in the Right Market at the Right Time

By The Property Couch August 18, 2016 in Podcast, Q&A

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What is the possibility of investing in property with the right strategy, in the right market, at the right time? Well, that depends. Now, we know this sounds really vague but in order to determine that, one need to ask if they have the right understanding in the first place? Because it is very dangerous if the perception of a right strategy or a right market is wrong and you go ahead and build a property portfolio based on your assumptions. For example, if Alex believes that capital growth is the right strategy and buying within 5km radius from Melbourne CBD is the right market, then he would be in a very tricky situation because the supply at the moment is quite low (unless he has a very deep pocket).

So in this episode of The Property Couch podcast, Bryce Holdaway and Ben Kingsley focuses on understanding what is considered as “the right market” and why it is important that you take the long view on where the market is going before committing to anything. Bryce and Ben will also be answering Maria’s question on cash flow management and an investor’s mindset. Here’s the question:

“Hi guys

Love the podcast and the book, well-deserved success with both.

How do you draw the line between good cash flow management and depriving yourself of things you enjoy? My husband and I have always lived within our means and we now have two properties under our belt in Sydney, with plans to buy more. We’re in our thirties. But I’ve found that as we’ve come along the investing journey I’ve become increasingly preoccupied with spending less. I have no issues buying necessities, paying bills, or paying for things that benefit our investing or our health. I don’t blink an eye at spending on insurances, BA fees, etc, because those things are useful and necessary.

However, when contemplating discretionary lifestyle purchases, often costing less than $100 (you know, stuff you don’t need, but want) I spend weeks analysing whether to buy, to the extent that I’m spending too much energy on it. I guess I worry that if I spend $100 here and $100 there, I’ll just eat away at our cash buffers. What are your personal real life experiences with discretionary spending while trying to build a property portfolio? Did you and your family buy your toys and vices freely, or did you find yourself analysing every purchase?

I want to have the best cash flow position possible, but I want to have occasional frivolous luxuries too. I know I need some sort of mindset shift, but what does that shift look like?”

Some of the resources mentioned in this podcast:

Webinar with Jane Slack-Smith and Peter Koulizos – Register here
Game of Property Investing – Find out more here
Facebook Live Chat (September 13) – Join here
Property Investor Sentiment Survey by PIPA – Find out more here
Episode 53 – The Money SMARTS System – Listen here

PS: And we’ve just achieved half a million downloads on the podcast! Thank you so much for all of your support and feedback. We will continue to provide good quality contents, ‘unpack’ more frameworks and case studies and answer your questions on all things property. If you are wondering what are the boys doing in this picture, this is what happens when Bryce Holdaway and Ben Kingsley heard that we’ve got half a million downloads on the podcast!

072 | Dumb things people do with their Money!

By The Property Couch July 14, 2016 in Podcast

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We’ve received a lot of great feedback regarding our Money SMARTS System and quite a number of our listeners have requested us to unpack a little bit more. So for today’s episode, we will be talking about some of the dumb things people do with their money!

If you’ve listened to all our previous episodes in this podcast, by now you would have understood that good money management is crucial to building a successful property portfolio. But this is easier said than done. What we would like to highlight in this episode is small things leads to big things. A tiny expense here and there would eventually sum up to a significant amount if not monitored properly. So Bryce and Ben listed 12 bad habits that they’ve seen and here’s the top 5!

Having too many separate individual bank accounts
Not changing your lenders simply because you are too familiar with the facilities and online banking arrangement
Thinking credit card money is your money
Not paying yourself first
Not having an offset account

Tune in to find out the rest! 🙂

We will also be answering questions from:

Luke:Hi Guys, love the podcast as it has helped me define my goals and strategy. Keep up the great work! I took great interest in your Money SMARTS System and have recently started using it. My question is, you say to pay investment property expenses from the Payments Account (i.e. the credit card), however, I have noticed that if paying by a credit card (VISA or American Express) you are charged a considerable fee (1.5-3.6%). Do you suggest we still pay via credit card as the interest savings from keeping funds in the offset account will outweigh the charge for using the credit card? For example, I went to pay the strata fees for one of my properties which were $407 for the quarter. If using American Express, I would have been charged an extra $15. Do you think it’s worth it?
Michelle: Hi! Just a quick question regarding your Money SMARTS system. I’ve been implementing some of your theories in regards to putting all Income into an Offset Account (Including Rental Income), paying money into a spending account for discretionary expenses, and using a credit card for known expenses (Managing to save an extra $1000 per month this way – woohoo!) Is this setup still acceptable if the offset account is linked to an Investment Property loan and not a PPOR? Thanks for all the great info via your podcasts and the Armchair guide to Investing, I’ve just given birth to our third child so podcasts are a saviour when I’m spending countless hours feeding my baby!! Multi-tasking at it’s best

Apart from that, we are also sharing Bryce’s free report called How to Buy an Investment Property without Impacting the Family Budget. Just fill in the form below and we’ll send it to your nominated email:

Free resources: How to Buy an Investment Property without Impacting the Family Budget

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Other resources mentioned in this episode:

Episode 53: The Money SMARTS System – Listen here
Episode 3: Four pillars of Mastery, Cash Flow Management – Listen here

If you like this episode (Dumb things people do with their Money!), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

53 | The Money SMARTS System

By The Property Couch March 3, 2016 in Free Resources, Podcast

By now, our listeners should understand the importance of good money management habits. It is the core of building a successful property investment portfolio and has been reiterated multiples times throughout this podcast.

Since episode 3, as part of the Four Pillars of Mastery, Bryce and Ben have talked in various occasions about Cash Flow Management and the flow of money in your household. This includes where money comes from, types of spending and types of investments for your surplus. In episode 41, they talked about the moving parts of cash flow management otherwise known as the money and accumulation model. This model looks at variables and assumptions to consider when you’re modelling sophisticated money and wealth outcomes.

On page 58 of the Armchair Guide to Property Investing, they introduced the money SMARTS system. It’s a money management system and the name stands for Surplus, Mindset, Application, Resources, Timelines and Strategy. The book provided an overall summary of each section and also some tips on how you can set up this account structure yourself. But we’ve received some feedback that our readers would like us to explain this little bit more so that is exactly what Bryce and Ben have done in this podcast.

As an extension of the money SMARTS system, we are also sharing a “cheat sheet” on which account to use for different types of expenses. Just fill in your details below and we’ll send you the link to download it.

NEW Update:

Since this episode was produced, we’ve published a Free Online Platform and a Book (now a best seller) to help our community implement Money SMARTS better. If you’re interested, simply fill in the form below to create a free account and download a free e-copy of the book!

Already have an account? Log in here.

Free resources: How to Buy an Investment Property without Impacting the Family Budget

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