Mortgage Broker Archives - Page 5 of 6

095 | Q&A – Investing in a Financial Planner, Upgrading your PPOR, Loan Strategy to Build your Portfolio and more

By The Property Couch December 22, 2016 in Podcast

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As Christmas is a time for giving, we thought today’s special Christmas episode should be none other than a Q&A session! Topics covered today include debt-retirement and refinancing loans, how to go about upgrading your PPOR (Principle Place of Residence), whether it’s worth paying for a financial planner and more. (And click here for your free The Property Couch Christmas Pack!) Today’s questions are from the following listeners:

Chris on debt-retirement and refinancing loans: Hi there, was hoping you could ‘unpack’ the ‘reality of’ the following finance-related scenario for me. I understand there is an “accumulation phase” where the investor actively accumulates as many quality, appreciating assets as required/wanted before transitioning to a “debt-reduction” or debt-retirement phase in the property investment journey. I was hoping you could spend some time describing what this debt-retirement phase actually looks like, assuming the investor has between 3-5 investment properties all on interest-only terms.

Changing all of these to principal & interest at the same time would probably be too strenuous on the budget, so is it a case of paying off the largest investment loan on principal & interest terms while refinancing the remaining loans as interest-only for another 3-5 years and start knocking off the balance of the largest loan? Or is it a case of building up the offset account of each loan evenly so that you end up paying less interest across all of the loans until you are in a position to pay the loan back in full?

But in this scenario the banks will eventually put you on a principal & interest payment unless you refinance again to an interest only loan, so how do you juggle at least 5 investment loans potentially all coming off their interest-only terms within 12-18 months of each other, while you’re trying to retire the debt without blowing the family budget? ($150+ principal payment across 5 loans = $750 a week which would destroy most family budgets).

Is it a case of focusing on one property at a time until the rent covers the principal + interest payments, before moving onto the next property or is it a case of continually refinancing to interest-only loans and building up the offset accounts? Is it better to focus on the largest loan first or distribute funds evenly across all loans? How do you actually go about entering the ‘debt-retirement’ phase on a portfolio of 5 investment properties (assuming all currently interest-only repayments with separate offset accounts but the interest-only period is expiring for all 5 loans over the next couple of years). This does not take into account the PPOR but we can ignore that part of the equation for the above scenario.

Bill on upgrading PPOR: My question is…I have paid off PPOR (home loan account closed) and would like to upgrade PPOR. What advice/suggestions do you have regarding using ex-PPOR as investment or sell off ex-PPOR to pay down new PPOR debt and then buying an investment property?

Anonymous on investing in a Financial Planner: G’day, I have a question that I think a lot of listeners would relate to and something you guys have not covered thus far.Firstly about me. I am 32 and have recently developed a passion to enhance my knowledge of residential property investment. I am in the Army and have a young family on my income alone. I earn 106k per annum gross. I bought my PPR in 2012 in Sydney which is valued at circa $8800k currently. Since I started my learning, using you guys as my guides, I have done the following.
- Analysed our cash flows for a month to understand where our money is going.
- Gotten rid of all non-deductible debt i.e. credit cards, pers loans etc.
- Bought our first investment. A two Bedroom apartment near Penrith. It’s walking distance to the station and five minutes from the train station, Nepean hospital and UWS. I also rolled our car loans into the investment. The place is currently leased with a 4.2 % yield.
- Manage our money to allocate spendings for myself and my wife similar to your model you advise with regards to offset and spendings accounts.

I also have a broker and accountant and also use a buyer agent. So my question:
I recently sought advice from a financial planner. After an interview, he sent me a proposal and plan which also outlines his fees. His fees were $500 per month with monthly payments that would be ongoing for a period of a few years. If cash flow management is essential and using surplus cash flows to reinvest is a key step, then how is 500 per month going out enabling this? Isn’t this counter to one of your pillars of mastery? If I had a large income and a large portfolio, then this would be manageable. But I don’t. Are all financial planners this expensive? I can see the value of buyers agent’s fees but I can’t see the value in planners for myself.

Andrew on when would be the best time to invest in property: I’m 26, my wife is 25 (DINKS), we live in Brisbane and our combined income is $150k. We’ve almost finished paying off our wedding (ouch) but are now planning for the future and want to get ahead before kids come along. We don’t own a house (currently renting), however we’re strong savers and would be in a position to buy in approximately 12 months. The issue is, our plan is to move to Adelaide in 2018 to allow my wife to study Dental Hygiene (limited college options in Qld). Would we be best to buy a house/IP right before we move to SA and rentvest? (and drop to a single income of $100k), or wait until she graduates (2 year degree) and look to invest then? Neither of us want to sit still for 2 years, but we’re reluctant to buy right before dropping to a single income.

Julia on Buying a home: I have only recently discovered your podcast and it’s awesome. Thanks so much for sharing your knowledge. I know your advice is ‘location first’ – I’m torn between two properties. A run down 1970s one bed room unit in Neutral Bay (ground floor) vs 10 year old amazing one bed room unit in Marrickville (top floor). Both similar price with similar strata. Neutral bay property needs everything renovated but has structural limitations. Marrickville unit has an amazing balcony that has a green leafy view and makes you feel like you’re at a holiday resort. I know Neutral Bay is blue chip suburb but would you consider Marrickville as a suburb with a potential high growth over next 5 years? This is my first property and I’m planning to live there for next 2 years then potentially rent it out. Any advice?

If you like this Q&A episode (Investing in a Financial Planner, Upgrading your PPOR, Loan Strategy to Build your Portfolio and more ), 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/

091 | Q&A – Affordability for First Home Buyers, Overseas Investment, Is it ever too Late to Invest and more

By The Property Couch November 24, 2016 in Podcast, Q&A

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After two weeks of Donald Trump-related episode, we think it’s time to get back to our listeners and answer some questions! But before that, Bryce and Ben kickstarted today’s episode with a quick update on interest rates and which directions we might be heading to in the next few months. And for today’s episode, they will be answering questions from:

Cody on First home buyers – I recently listened to episode 87. Listening to the content of first home buyers not being able to get into the market unless prices fell 30%. What is your moral standing on this? Are you okay with our kids getting locked out? Do you consider yourselves and like-minded people responsible for aiding in driving competition and prices? Do you think there should be any assistant to our kids from a government policy standpoint to own their homes? Look forward to hearing your thoughts.

Tom on Overseas Investing – Hi guys, just listened to the latest podcast…thanks for the shout out to London, where I have just moved to from Australia. I have 2 IPs in Inner West Sydney and thinking I will be sitting on them to let them grow for a few years until I get back…London property is just ridiculously unaffordable! Would be interested in your thoughts on investing in overseas properties in countries such as NZ or the UK, from Australia, or vice versa and the process involved to purchase and manage. Enjoy what you guys are doing, and I think it’s the best podcast on IP in Australia. Thanks, Tom.

Steve on Overseas Investing – Hi Guys, loving the podcast. In footy terms, you’re both ‘up and about.’ Question for Podcast: Investing in Property Overseas. You talk of ‘borderless investing‘, but that’s only Australia. Is it a bit un-diversified to put all one’s eggs in the ‘Australian Property Market’, just like a Pommy would be putting all of theirs in the UK market, or a Yankee putting them all in the U.S of A? You guys have read Kiyosaki, you must have dreamed of following the world’s market cycles like a real ‘world’ investor. My question is ‘Where can Aussies buy overseas?’ I know an Aussie buyers agent buying in the US for clients at the moment, and you hear of the Chinese buying here. Why aren’t we buying China? Thanks, Boys!

Brett on Setting up an Offset Account – Hi guys, love the podcast, after meeting with a very respected investment mortgage broker, they suggested switching my PPR loan to interest only to help build savings for an investment deposit in an offset account. I couldn’t work out why this would be better than putting my money into the PPR loan to increase equity then drawing it out when there is enough. The money I draw out would be tax deductible on the interest, whereas the money I save in an offset, if I draw this out for an investment, this would keep my PPR loan higher and thus not tax deductible on the interest. Can you guys please discuss this as I am starting to lose respect for this particular broker. Thanks

Nicole on Canberra as the next Investment Spot – Hi guys. Love the show particularly being a Victorian, I love the sports chat at the start 🙂 However, I am now in Canberra and would love it if you could incorporate a bit more of our ‘different’ city into your commentary. It does not fit the usual capital city, but it is nonetheless. Also, can you tell me where you got Bernard Salt’s population predictions? I would love to see them in more detail. Many thanks and I look forward to the next show.

Question 6 from Kieran on whether it’s ever too late to invest – Hi guys, I’m loving the wealth of knowledge you guys put out each week. As a 31-year-old who never really considered what I could be doing now to build for their future it is inspiring to see how accumulative action over time can have such a great impact and how accessible it is to anyone with the right knowledge, advisors and drive to succeed.

My wife and I recently met with your team at Empower Wealth and are now on savings track to secure our first investment property. Bring on the Rentvesting! My question, however, is related to my parent’s situation. I am wondering if it is every too late to help fund your retirement?

My parents are 63 and while they have worked hard all their life, they’ve had a couple of investments turn bad which has them worried about how they will fund their retirement. They currently pay P+I monthly with approx $220k left to pay off on a property valued at approx $550K. As I understand it, they have calculated that if they work for another 5 years they will be able to pay off the balance of their PPR using the superannuation they have accumulated. That will leave them with the house owned outright but only the pension to live on.

I am sure there any many approaching retirements and facing the prospect of having to keep working longer than they hoped or unsure what kind of lifestyle they will have when the do retire. What options are there for someone in their position when it becomes harder to get approved for a mortgage due to their age? Is it ever too late to get involved in property investing to create a passive income?

NOTE: Here’s the video that Bryce mentioned in the podcast > Investing in A Granny Flat

If you like this Q&A episode (Affordability for First Home Buyers, Overseas Investment, Is it ever too Late to Invest and more), 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/

088 | Q&A – Investing in Newly Developed Areas, Getting into the Property Market, Career as a Buyers Agent and more

By The Property Couch November 3, 2016 in Podcast, Q&A

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Last week’s podcast had been quite an interesting one! We strongly recommend you to listen to it twice to make sure you don’t miss out on Dr Andrew Wilson’s outlook on the Australian Property Market. This week, we are going back to Question and Answer episode and Bryce Holdaway and Ben Kingsley will be discussing:

Question on a career as a property professional from Hayden: To the Property Couch, I have a couple of career questions to ask but firstly I just wanted to share my investment story so far and why I think what you are doing is so important. If I had your advice earlier, my circumstances would be much different. I am currently 25 years old; I began my investment journey when I was 17. My father suggested using the money I had saved for a car to use it instead to buy a house. This was in 2008 when the Rudd government was handing out the huge first home owner grants, when I had my first meeting with a mortgage broker (not even knowing what a group certificate was) they were suggesting I buy an off the plan unit. So put signed up for one in Frankston, Victoria from a company thinking they were giving me good property advice. This purchase eventually fell through due to the bank evaluation not coming through at the correct price. Then I signed up for another off the plan unit in Langwarrin, and after two years they had not even begun construction because the council was saying there was endangered fish in the creek near by. So I pulled out of that one and tried to purchase one in Carrum Downs 6 months later and this one fell through because the bank wanted 20% of the loan. Friends and family were telling me to give up by this point because of how upset I was getting, but I stuck with it and purchased one in Langwarrin. This time, a 2 bed 1 bath unit. This then turned out to be a very poorly built unit and eventually I received an insurance claim of $20,000 to fix the poorly built unit. After 4 years, this property has not delivered any growth at all and doesn’t look to in the near future either. Then I purchased a 1 bed 1 study 1 bath unit in a high rise in Ipswich, Queensland and this property has a lift, pool, spa, sauna, underground car park and a concierge.Even though I have made nearly every mistake you could make and still haven’t made a cent off property, I’m still obsessed with it and read and listen to every book and podcast and attended any event I can. I want to work in the industry to try to prevent this from happening to someone else but I’m not too sure what exactly I want to do. I was wondering if you would share some in-depth insights into mortgage broking and being a buyers agent. As much detail as you could would be helpful such as their daily tasks;
(A) The pros and cons to each and how much they get paid?
(B) And your thoughts on mortgage broking franchises or are you better starting off on your own?

Question on new developments from Brad: I realise that you guys are biased towards investing in established homes, usually with a short disclaimer on how you may have invested in new developments at some stage in your lives. In the interest of a more balanced argument, I feel it would be beneficial to offer someone in the industry who focuses on investing in new developments the chance to put their views forward. Just as there are good and bad established homes the same rings true for new or off the plan developments.

Question on next step in property investing from Damien: Love the podcast, learning so much each episode, feels like I’m completing a degree for free so thank you so much.
I recently purchased my first property under market value (purchase price $420k, my banks value $540k) 3-bed townhouse on 452m2 in Kenmore, Brisbane. I had to use LMI ($18,000) due to only 5% deposit which basically brought my loan up to $420k. I want to continue to accumulate good properties. My financial decisions i.e lifestyle was poor in the past but over the last year I have turn that on its head. I have $20k in cash now and I’m wondering what would be your advice for my next move. I’m making sacrifices to get ahead. I live in the townhouse with 2 tenants getting 360 a week for cash flow. I have an interest in renovation also and I’m looking in the Ipswich area. Should I hold off or move again swiftly?
Thank you for your help.
Go the Lions 🙁

Question on cash flow from Ben: Hi guys, love the podcasts! I stumbled across one of your podcasts when I was searching for investor information and enjoyed it so much that I went back to the beginning and listened to every single one in the space of about 3 weeks! I’m 21 and working part time whilst also studying. I am planning and on track to have a 20% deposit on a 400k house saved up in the next 12 months. However, due to the nature of my work (personal trainer) my weekly pay can drastically vary (anywhere between $300 and $900 per week, with an average yearly earnings of around $25,000) and the fact that I will still be studying and unable to work full time to increase cash flow for the next few years, I visage that I would have next to no chance of being successful in getting a loan to match my deposit. I want to do whatever I can to get into the property market as soon as possible, but considering my circumstances and my end goal (early retirement on 100k+ per year) is there anything that I can do to get into the market sooner rather than later without substantially increasing my cash flow? Or should I just keep saving and wait it out until I have the cash flow to match my deposit?

Question on investing in newly developed areas or established suburbs from Stephen: Would you be better to build in an area with established housing nearing the end of its development life where you know the quality of the area. Or in a new development with no housing as yet but a big blueprint for long-term development? Would you get a bigger capital gain in the new area over time vs potentially small capital gain in established as the capital gain has already expired?

If you like this Q&A episode (Investing in Newly Developed Areas, Getting into the Property Market, Career as a Buyers Agent and more), 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/

083 | Do you think like a sophisticated Property Investor?

By The Property Couch September 29, 2016 in Podcast

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If you are new to property investment, don’t you want to know what the sophisticated property investors are doing? Why would you want to reinvent the wheels? It will certainly save you more time and money if you understand the norms and fundamentals from those who have already experienced the journey. So this time on The Property Couch podcast, our hosts will be discussing the practices of a sophisticated property investor.

Their discussion will be based on the recently released PIPA Annual Investor Sentiment Survey. It’s the only sentiment survey for property investors in Australia and has a unique sample of Australia’s property investment community. Distributed via PIPA’s extensive investor networks, it provides a rich insight into the views of Australia’s investors.

Some of the key findings discussed in this episode are:

What do investors feel about the long-term merits of real estate?
Does negative gearing really matter?
What kind of dwellings are the sophisticated property investor going for?
How much attention are they giving to the property market cycle?
Where do they get their advice from?

Tune in to start listening!

Free resources mentioned in this podcast:

2016 Annual Investor Sentiment Survey – Download here
Webinar with Bryce Holdaway and Jane Slack-Smith on Renovating an Ugly Duckling – Register here
FREE Tickets to the Sydney Property Buyer Expo (Coupon code: PBE16BRYHOL) – Get them here

If you like this podcast: “Do you think like a sophisticated Property Investor?”, don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Episode 81 | Does investing for the long term actually matter? – Chat with Stuart Wemyss

By The Property Couch September 15, 2016 in Podcast, Real life stories

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For today’s podcast, we have Stuart Wemyss, owner and Director of ProSolution Private Clients joining us to talk about his property investment journey and his investing philosophies. Coming from an Accounting and Finance background and with more than 19 years of experience in the investment services, Stuart is also a PIPA Member and has authored two books; Smart Borrower’s Handbook and The Property Puzzle.

So for today’s episode, the three of them will be talking about:

When did he buy his first property and how did he start investing in property
What are the lessons he learned when building his property portfolio
Why does investing for the long-term matter and the mindset needed for this approach
In his role as a mortgage broker and finance specialist, what are the common mistakes he has seen over the years
What are his tips for listeners when they are choosing an investment advisor
Two questions you need to know the answer for before prior to building an investment portfolio
What he thinks about commission-based financial advice

[alert]Don’t forget to download the Property Investor Sentiment Survey 2016 Report! – Download here[/alert]

And if you are interested to learn more about Stuart’s books, here are some reference points:

Smart Borrower’s Handbook | An Essential Guide for Property, Sharemarket and Superannuation Investors – Buy here
The Property Puzzle | A Simple Guide for Property Investors on How to Develop a Safe Financial Plan – Buy here

If you like this podcast: “Does Investing for the long term actually matter? – Chat with Stuart Wemyss”, don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

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