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490 | Why Is the Sandwich Generation Trapped in Wealth Limbo?

 

The Sandwich Generation is stuck in a wealth limbo where “it seems impossible to get past 1 to 2 properties”, says TPC listener MC. But who are this group of investors, and why are they finding themselves in this property purgatory? 💸 

In today’s episode, we explore how to get creative to escape wealth limbo, the #1 thing you shouldn’t do for those going through a breakup and pose the question… 

Would you stop paying 10c at the risk of not earning $1?  

This question paints the tip of the iceberg for today’s discussion into a battle that looks increasingly akin to David and Goliath as the government continues to stop $3B worth of incentives for property investors… 

The truth is in the pudding (or, more specifically, the Australian Taxation Office’s data): for the first time in recorded history, rental stock is declining 

It’s an alarming and insightful episode that will open your eyes to the many hurdles property investors must overcome.  

Give it a listen now, folks 😊  

 

P.S. Were you in wealth limbo or are you part of the Sandwich Generation? Send us a message on our SpeakPipe; we want to know you overcome these issues!  

 

Free Stuff Mentioned

  • 2024 TPC Survey Now Open!
    Let us know what we should start, stop and keep doing and as our thanks to you, we’ll give you a Case Study Series Unpacked for FREE (usually $297). Plus, the top #5 most insightful answers will win a $100 gift card. Share your thoughts now >>   
  • Free Book: Make Money Simple Again  
  • Free Money Management Platform: Moorr 
  • Are you part of the Sandwich Generation? We want you to be part of our 2025 Summer Series! Reach out to Bryce on Instagram or through our SpeakPipe  (And get a free Start & Build course if you make an appearance!)  
  • The first time in recorded Australian History: Rental stock is going backwards and the latest ATO data. Watch this Episode on YouTube to see these insightful graphs >>  
  • Bryce’s Lifehack: iPhone stickers can help you plan your outfit! >>  
  • Ben’s “What’s Making Property News”: Read Domain’s March 2024 Rental Report >>  
  • Guests & Episodes Mentioned:  
    • 376 | It’s never too late to start: How he’s on track for a $2k/week passive income! – Chat with Steve  
    • 382 | “Property Investors are Tired of Being the ATMs for the State!” – Chat with Antonia Mercorella  
    • 401 | How Old is Too Old?! Refinancing, Retiring Debt & Starting Later in Life 
    • 454 | How to Create a $5.54M Portfolio in Your 50s – Chat with Tom Dekker 
    • 473 | Juggling Teenagers, Divorce, and 4 Properties: How This Single Mum Conquered Her Financial Pain – Chat with Leisa 

 

Comments & Questions

Listener Comment from Tom: 

Hi Ben and Bryce,

Loving the content after listening for more than 3 years.

There is currently a lot of noise in the media and social platforms about how us greedy investors are pushing up house prices and rents as well as rolling in wealth as a result of the negative gearing and capital gains tax rules which I believe need to be clarified for everyday Aussies and certainly for the politicians who are using this agenda for their own political benefit.

As a property investor, I have and will continue to work as diligently as possible to pay tax on my rental properties every year. Yes this is my goal!

For the past 3 years, I have had the privilege of paying tax on income received from my rental properties although this may change in the coming year as a result of interest rates and increased costs to hold the properties.

Negative Gearing is a safety net for the investor which supports reducing the “loss” it does not create a windfall at all and simply means that if for example I made a loss of $10,000 on rental properties in a year and I am on the top marginal tax rate, my loss is reduced by up to $4,700.

I am still making a loss whilst providing accommodation so I am a little confused by the politicians assumption that we buy property just so that we can claim back some tax and lose money. Makes little sense and it is my view that removal of this safety net will simply increase the cost of rents.

Capital gains tax discount which was brought in to replace indexing and based on my research, the impact (difference between before and after capital gains tax discount) is actually in favour of going back to the indexing model where investors made slightly more.

I am proud to be a property investor providing good, safe and as affordable as possible accommodation for my tenants and whilst I accept that I cannot always make money on the rents collected, I am ultimately doing this to support myself and my family in retirement where I will most likely continue to pay tax on rental income happily until my final breath.

Seems to me that the politicians want me to reconsider and live off the government in my retirement rather than contribute!

The record needs to be set straight on the greens agenda. The Greens were for the environment when it was top of the social media charts but now suddenly they are the anti-investors party because this has a higher profile.

We as a group of investors need to create a voice that helps inform all people of the facts rather than the political BS!  I would pay to watch or listen to you guys interviewing one of these politicians!

Perhaps by putting everyone straight, we can get the focus back on to the priority which is increasing supply and improving vacancy rates rather than pointing fingers.

Keep up the great work gents!

Tom

 

Question on Sandwich Generation of Women from MC:

I’m keen to hear from single women (and men) who didn’t start investing till their 40s. There are so many of us! It’s a real feature of my generation.

A lot of the single women you’ve had on your program started their investment journey before 2017, so were able to buy multiple properties with equity and before the serviceability constraints came in.

If you’re a single female on a middle income today, don’t have parental assistance or any kind of inherited wealth, and you start investing a bit later, it seems impossible to get past 1 to 2 properties.

I’m keen to hear others who might have done that in today’s environment, especially how they’ve met and creatively dealt with serviceability challenges.

For what it’s worth, I think there’s a large, sandwich generation of women who never married, but whose parents never bothered to educate them about property because they just assumed it was a ladder they’d start climbing once they got married and had children.

But that hasn’t happened, so they’re in a kind of wealth limbo. I know so many people in this situation! I’m also just keen to hear more from people who started their investment journey late – age 40+ – in general and to hear what they’ve been able to achieve.

Cheers and thanks for your terrific program!

 

Timestamps

  • 0:00 – Why Is the Sandwich Generation Trapped in Wealth Limbo? 
  • 1:35 – Tell us what you want to hear! >>  
  • 4:27 – Mindset Minute: How to Stop the Toxic Cycle of Overthinking  
  • 9:27 – Previous Summer Series Guest: Negative Gearing is Still Loss Making  
  • 13:57 – Property just isn’t stacking up anymore for the investor… 
  • 18:27 – A Letter to the QLD Parliament from A Property Investor 
  • 22:01 – The first time in recorded Australian history: Rental stock is going backwards?!  
  • 26:09 – It’s David vs. Goliath: Giving the investor a voice  
  • 32:13 – Would you stop paying 10c at the risk of not earning $1?  
  • 38:31 – If you stop the $3B incentives, you have to accept the unintended consequences…  
  • 43:40 – Q1) Sandwich Generation of Women from MC   
  • 46:14 – You need 2 essential things to invest in property  
  • 48:55 – “Don’t think about investments, think about stabilisation”  
  • 51:00 – Why Bryce likes listening to success stories  
  • 53:57 – Get creative to get out of the wealth limbo 
  • 57:09 – Going through a breakup? Don’t do THIS  
  • 1:02:19 – Encore Comment: “You’ll be given a generous referral fee of $10,000 plus GST for each successful referral.” 🙄 
  • 1:06:48 – Behind-the-scenes of how the referral game works   

And… 

  • 1:11:18 – Lifehack: iPhone stickers can help you plan your outfit   
  • 1:13:55 – WMPN: Quarterly Rents: We predict VIC will be top soon…

 

355 | Zero Debt & $2,000 A Week In The Bank: HOW?!

How can property investors reach zero debt AND still hit a four-figure passive income each week?
And what do we mean when we say “retire” the debt, anyway? What does this look like and, importantly, WHEN should you start this process?

Folks, in today’s special Q&A episode we’re circling back to a few basic principles and fleshing out some confusion when it comes to property investing. This includes clearing air (and tidying up our language!) when it comes to being informed of the step-by-step investing process.

For one – you’ve no doubt heard us talk about achieving $2,000 in passive income… well, WHERE exactly does this money come from? Is it just your rental income?

As part of this we’ll also be covering “Failure to Launch” principles and “Investment Remorse” – the latter, which may actually be a more common feeling than you think! So what should you consider if you find yourself second guessing your asset selection?

PLUS, because we’re officially in Spring – this episode comes with a WARNING about this year’s “Spring Selling Season”… ‘cos there’s a critical shift taking place ALL home buyers need to be aware of.

Suss the exact questions we answer below – or, better yet, simply hit play and get the gold now 😊

 

Free Stuff Mentioned

 

The Questions We Answer

Question from Stevo on “Post Purchase Restlessness”
Hi guys 12 months after purchasing an investment property, I’m starting to get this feeling that it might not of been a great purchase and also restlessness about wanting to “go again” and am worried the growth might not be quick enough compared to capital cities. I say that based on an old episode where you mentioned something about the limitations or a price ceiling in certain areas based on the demographics.

Obviously being a regional property, which doesn’t have the same wage potential as capital cities, am I exposed to the idea that the growth has happened and it won’t come again?
The property is available via this link. It’s shown growth over the past 20 years in capital and rental return.

For reference the idea of “inner city” living (albeit in Mildura) has exploded recently and is the driver of the growth over the past five years. The council and state govt have invested to upgrade the riverfront (very close to the CBD) and has completed stage one. Stage two has started to attract funding and small upgrades/extensions have started. Data suggest Mildura will continue to grow in population albeit slower than Geelong and Bendigo for example, however, it is still positive growth compared to other regional towns this distance from capital cities (which are often stagnate or negative). Major industries – agriculture and tourism, health, Govt. Sorry for the long-winded question and info.

Also, is this a normal feeling people get (delayed remorse)?

 

Question from Ebony on “When is the best time to sell your investments?
Hello, I have a question around when is the best time to sell your investments? My husband and I are mid 30s and have two investment properties. Right now, in our town the property market is a sellers’ market and prices are crazy. Our accountant has recommended that we should seek advice from a financial advisor and possibly sell both investments because they are positively geared and that we would be better off building a new home as an investment or investing elsewhere. I am really unsure about this because I think that we already have 2 great investments, and we would be potentially paying more down the track for land should the market stay the same. However, we have had one property for 2 years and the other for 1 year and could look at earning $100K off the sale of each investment. I guess it’s hard to know if the market will stay at these prices or crash when interest rates rise. Really after some advice from someone who is knowledgeable about property investments. Thank you.

 

Question from Paul on Retiring Debt
Can you elaborate on what you mean when you talk about retiring your debt? I’m confused by what you mean by this.

 

Question from Chris on “$2,000 per week in passive income”
Hi Ben and Bryce, Love your work. 👍 I’m not sure if you’ve mentioned it before, and you probably have, but I would like to know where the $2,000 a week comes from? Is it pure rental income (taxed) above expenses for the portfolio or is it accessing equity against capital growth (is this now defunct with new lending criteria?) or is it a combination of both? Thanks in advance. This is a major thought blocking me from moving forward. 👍

 

Rest, Recovery & High-Performance Graphic

Here is the graphic Bryce was referring to in today’s Life Hack:

 

 

 

350 | How BEN Did It: A Passive Income of $190,000 Per Year… At 50!

Meet Ben Kingsley – Oh, wait. You probably have.

Not Gandhi, the other one.

The co-host of this podcast?

Yeah, THAT Ben.

Today Bryce is INTERVIEWING him, which might sound a bit odd. But, stick with us, ‘cos we promise you it’s going to be an episode you won’t ever forget, folks!

Why? Well, Ben has practiced what he preaches. That is – he has personally built his own property portfolio, played the long game and for his 50th birthday this month, he will gift himself a passive income of $190,000 a year from it. Not bad, huh?

Portfolio, Done. Passive Income, Done. Lifestyle Design, Done.

Speaking of Lifestyle Design, this interview with Ben is taking place while he’s in the Kimberley, Western Australia! Turns out, he has – along with his wife Jane and their two boys – taken a 2-month sabbatical to their dream destination – something that was factored into their life and property plan many, many years ago.

Wait – they planned this holiday YEARS ago?

Yep, they sure did. And Ben is going to tell you exactly how he and Jane built their property portfolio to make certain it happened. (And how it helped fund the entire trip.)

In this “Never Before Revealed” episode, Ben is going to share his OWN journey to Financial Peace with you… and how he did it using the exact same principles and frameworks we teach on The Property Couch!

So, who is this wise ol’ mate, Ben Kingsley? And what can he share with you about his own journey to get here that he hasn’t publicly shared before? And can someone please tell us exactly what his portfolio looks like!?!

Sure. Strap yourselves in. This is a RIPPER!!

 

Free Stuff Mentioned

Here’s what we cover…

  • 7:08 – A quick update on last week’s episode with Julia regarding BA fees in Canberra
  • 7:30 – Our brand new Tax business! Register your interest here.
  • 11:55 – Mindset minute: What’s found outside your comfort zone?
  • 16:11 – Ben’s dinner table money conversation in “Fundoora”
  • 17:40 – How many jobs did Ben’s dad had just to pay down his debt and what happened the very next day after his dad retired at 55!
  • 20:05 – What happened at home that caused anxiety but yet motivated Ben to do things differently?
  • 29:25 – __________ boots and _________ equipment << This is what they lavish on growing up
  • 30:05 – The Functional view on his purchasing decisions
  • 33:42 – The TWO INVESTMENT PRINCIPLES that started Ben’s investment journey
  • 36:34 – First business he ever started that failed and pushed him out of his comfort zone
  • 39:01 – Who are his early mentors – before Google?!
  • 39:52 – Some of his experiences with spruikers and the mental triggers that they used
  • 43:20 – The one problem that Ben was trying to solve that made him started an award-winning financial advisory firm
  • 49:12 – When and who triggered the creation of Money SMARTS?
  • 51:15 – The behind the scenes work when planning and implementing his lifestyle design of achieving passive income of $190,000 by 50
  • 57:50 – Ben’s portfolio in detail – how many properties, type, location, yield and growth! (FIRST TIME ON THE SHOW!)
  • 1:04:20 – Who did he meet in the Wyndham that made it all worth it?
  • 1:10:40 – Overcoming the 3rd Generation Curse and a Sense of Entitlement
  • 1:11:29 – Bryce’s lifehack
  • 1:11:30 – Update on Labor’s Negative Gearing policy

 

 

344 | Have You Made The Wrong Investment Decision?

“Have I made a mistake?” This is a common question we get from investors who just start listening to our podcast and learn the fundamental principles we teach for the first time.

Sometimes it’s directed to a specific property in their portfolio or is based on an investment decision they were initially considering but are now unsure if it’s a good idea or not.

And today we are answering some of these key questions – one, in fact, where the listener is not entirely “wrong” in their choice, though at face value seems to go against our general rule of thumb. You’ll learn why exactly this is and how to use this information in your own decision making process.

On top of that, we’re unpacking how to tell HOW MUCH a property is worth – including common D.I.Y mistakes folks make when trying to value their property and some simple (but overlooked) tips to assess this yourself and how to recognise when it’s time to bring in an expert.

Plus, if you’ve ever considered if solar panels on an investment property will increase its value and even the amount of rent you receive, then definitely tune into this episode… ‘cos you might be surprised by our answer!

You can suss all the questions we answer below – otherwise simply hit play and enjoy the show!

 

Oh, and, yep – Next week we’re kicking off our NEW WINTER SERIES. It’s kinda like our Summer Series but, umm, in Winter 🤣 So we’ll be interviewing our listeners who’ve had Real Life Financial Transformations! And we gotta admit… these stories are off the charts!

 

 

Free Stuff Mentioned 

 

The Questions

Question from Ricky Comerford on “Getting Solar Systems For Investment Properties

Hi Ben & Bryce and all the team working behind the scenes. I just want to thank you for these podcasts and all the wonderful things that you are doing at Empower Wealth. I have a question today in regards to Solar Energy in a Solar System. Now, we’ve got a strict budget for our primary place of residence that’s currently being built. This house is going to be turned into an Investment Property in 6 years’ time. We’ve been quoted for a solar system and it’s pushing the budget by $3000. Now, the return for investment for this Solar System will be 3-5 years, not taking away the fact that solar power is great for the environment. I just want to know strictly financials What is your opinion on solar systems for an investment property?

Do they increase the value of the home by much and the rental yield? And should we get one installed knowing the situation of this house and our budget and the fact that it’s going to be an investment property? Thanks for your time and yeah, hopefully I get a response.

 

Question from Riley on “Buying New with Grants Instead Of Established”

Hi Bryce and Ben, I’m just wondering with all the government grants that are coming out at the moment, if it’s almost a bit too good to say no to at the moment as a first time buyer. I’ve been looking to get into the market for a while now. And down here in Tasmania, we can access up to $45,000 in grants to build a new place. I know it sort of goes against everything that you’ve taught in your podcast. But I’m just wondering if it’s probably now with these grants a better way maybe to get into the market. I know certainly from my perspective, that’ll help with cashflow as well, given that I’ll probably get an extra, maybe bedroom and bathroom into the house as opposed to buying a smaller townhouse type of property closer to the city. So just wondering what your thoughts would be on that, if it is now possibly a better option to be building a house rather than buying existing? Thank you.

 

Question from Kate on How To Calculate Loan To Valuation Ratio

Love the show. I’ve been listening for a few years now and I’ve done all the episodes and I tell everybody I can about The Property Couch. So my question relates to loan to value ratio.

Obviously, it’s easy to determine what the outstanding loan amount is, but where would you go to determine the best value do the free bank valuations cut it? You know, the ones, I mean, I’ll flick by most of the big banks put the address into the website and they spit out a value, but it is generally so broad that is almost useless. Should I ask the bank where the mortgage is held for evaluation? If so, would there be a fee payable? Should I get a real estate agent thing? I probably want to over the value of the property and use RPM. Isn’t that the same as what the bank is? Please help.

 

Question from Riley on “Have I made a mistake?”

I just want to start off by saying that I absolutely love your podcast along with the books and resources you provide. I have just signed up to your workshop and the Money S.M.A.R.T.S portal, which I am excited to get started on! You’ve probably heard this a lot but I wish I had found The Property Couch sooner!

My wife and I are settling on our first investment property in Vasse, WA next week.  I only found your podcast 4 weeks ago and have a lot of catching up to do! I have a couple of questions if you guys have the time to go over them.

Little bit of background:

We are 34 and 30. Bought our first home together almost 8 yrs ago in Padbury, WA and still living in it now. Had the expensive wedding, bought the dream car (for my wife who has expensive taste) and now we are just about to settle on the first investment property.

Together we earn $203,500 before tax but we are hoping to start a family asap so we will drop down to one wage of approx $104,000 (self-employed and pay myself $2k p/week before tax) in approx 6month – 18months.

The house is a 6yr old 4×2 in Vasse on 570m2, great spot (I think) between the high school and primary school in a fast-growing area (they predict the population of the South West will quadruple in the next 20yrs) and rentals are very scarce. We paid $416,000 and it is currently rented out for $480 p/week on a 18month lease. We signed up on a very low rate 2yr interest only loan and I have worked out that after expenses (mortgage, prop manager fees, insurance, rates and 1.5% maintenance) we will have approx. $10,240 left over making this property positively geared.

In my view (prior to discovering your podcast) I thought it would be great to have it positively geared straight away as we can put that surplus towards the deposit for the next property and/or renos for the Padbury house (want to make it into a 4×2, currently a 3×1

and already have plans drawn up) but from everything I have heard is that when you first acquire a investment property it starts off negatively geared and may take 5-10yrs to become positive.

 

So to the questions:

  1. Have we done something wrong?
  2. Do you recommend that we put all that surplus into the Padbury house (PPOR) offset until we are ready for the next deposit or would you put it into the investment house offset?
  3. Do we make it negatively geared for the short term to pay less tax? (we have surplus cash that I’d love to put towards our next property asap even though we are paying lots of tax)
  4. After the 2 yr period would you switch to a P&I loan or keep it on a IO loan?

 

I know there are a lot of factors at play, and I hope I have given you guys enough information to comment on our situation and we would love to hear your views. Sorry if this has been covered in your podcast but I am still only up to episode 40, I need to do some more long drives as that is the only chance I get to listen 🙂. Again, thanks to both of you for your time and knowledge, you make me excited about property investing and I can’t wait to learn more and more as I go through TPC free resources.

 

 

 

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