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Folks, things sure have been heating up in the high rise apartment space recently and we MUST address a seriously important question, for property investors and home owners alike…

Should you be considering buying high rise apartments in the wake of some very high profile cases revealing significant issues??

We’re talking about the high-rise apartment evacuations that’ve been happening our main centres due to building defects — Opal Tower, Mascot Tower, LaCrosse apartments and Neo 200 —which have resulted in cracks to main structures, severe and unsafe water damage, FIRE (such as the cladding fire in Melbourne’s CBD) … all things that we can all agree are very problematic. Not to mention are also leaving a fair few folks homeless, out of pocket and fed up!

So, not only are you likely to struggle to get a return from high rise apartments, it’s evident that some (we’re definitely not saying all here) may pose a safety risk as well.

But if 1 in 5 wanting people are actually WANTING to live in apartments (which is up from 1 in 7 in the 1990s)…. it can definitely be argued that there IS a growing demand for one/two bedroom living… the question is… What should you be considering (and avoiding!) if you are wanting to invest in apartments?

And when it comes to high rise buildings, has the landscape well and truly changed?

… We’ve thrown in a Bonus Q & A to answer your specific apartment Q’s too, folks!!

House Keeping…!

We’re working on a brand new Podcast Picture (thumbnail) and we reckon we’ve got it down to two…  can you please Tell Us Which One You Like Most – Option A … OR …. Option B (both on our Facebook Page)

Favour WANTED from Long term listeners (please!)….

Folks, we’re doing a shameless shout out for selfies!!! Yep.. this is the brief: if The Property Couch has changed you or the way you invest, or your money management or has helped you in any way,  can you please record a selfie video of 60 seconds or less to let us know?? The reason we want these is to put the word out there, grow our community and ultimately help other folks avoid bad property decisions!!

Send Your Video Testimonial to info@thepropertycouch.com.au

Resources Mentioned…

• New Facebook “Lives”
  • How to Get The Kids On The Property Ladder
  • Framework on Property Mentoring and who will and won’t take action – with  Jane Slack-Smith
  • Monthly Market Wrap with REA’s Chief Economist, Nerida Conisbee

• BEN ON STUDIO 10 Discussing Apartments(yes, he’s fully sitting in with the morning hosts!)
• SUSAN ALBERT’s EPISODE – Episode 239 | From Working-Class to Multimillion Dollar Philanthropist: How This AFL Royalty Mastered The Art of Delayed Gratification – Chat with Susan Alberti

• WIN SUSAN’S BOOK – The Trailblazing Story of Susan Alberti – The Footy Lady
• BMT Tax Deprecation Schedule
• Sell or Hold Report

Bonus Q & A on Apartments  

Question from Keren

What do I do with the apartment I bought prior to finding your podcast?? 😂😂😂

Question from Sabrina

I want to know if it’s worth buying an Off the Plan townhouse in Deanside (next to Caroline Springs in Melbourne)  3 bedroom townhouse, no body corp, under $390k

Question from Jake

Things to consider in regards to the sinking fund and if or how can the body corporate request to raise money from owners for certain issues? 
Keep up the good work ✌️

Question from Rory

Have an old apartment built around 60’s. Bought it in December 2013 since then I’ve put in new carpet and vinyl. Should I get a deprecation schedule in it?

Question from Tania

What are some of the unexpected costs of buying/holding an apartment?

Question from Nicholas

How do you determine capital growth on an apartment if you are the second purchaser assuming that the original price has been inflated for developer costs and not an accurate figure?

Question from Sonya

With a budget of 700 to 800k. I would like to know if an apartment (not brand new) in Moonee Ponds is a better buy than a house on a 700sm size block in Glenroy, as a comparison apartment vs house. Thank you.

Question from Bryan

 Is it safe to buy now in Brisbane apartments give lots of the newer builds have dropped 20% in price？Or do you think that is still overpriced？

Question from Laura

I want to know if it’s worth buying an apartment as an investment vs a house.

Question from Marah

Whether the ugly 60s / 70s brick monsters are a good investment how to protect yourself in an Opal tower situation…

P.S. Looking to get a free copy of Susan Alberti’s book, The Trailblazing Story of Susan Alberti – The Footy Lady? Click here and tell us which part of Susan’s story had the most impact on you! (ends on July 17th!)

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What’s a footy oval and a VERY successful investor got in common?

… none other than one gutsy, 72-year-old woman… Susan Alberti!!

For the folks who aren’t quite into AFL like we are, Susan is not only Football Royalty down here in Melbourne — particularly when it comes to the AFL Western Bulldogs Football Club and opening up the sport to women players… but also, Susan has lived an EXTREMELY incredible life… she’s experienced everything from very humble beginnings, unspeakable tragedies, not being able to get a loan as a woman (yep), the heights of true accomplishment (see all of the positions she’s held here – ‘cos there’s more than a few!) and giving back in a way that is profound and unbelievably inspiring — all of which has been documented in The Trailblazing Story of Susan Alberti – The Footy Lady.

She is living proof that hard work, investing and delayed gratification pays off and is, of course, as respected as they come.

To give you an idea, not only is “Sue” one of Australia’s pre-eminent philanthropists, having donated millions of dollars to medical research and other charitable causes — when her only child, Danielle, was diagnosed with type 1 diabetes and later passed away due to the illness, Sue embarked on a global mission to find a cure, and is now Chair of the Susan Alberti Medical Research Foundation. And earlier, when her first husband was killed by a truck, Susan took over their construction business and discovered firsthand how to survive and prosper in what was very much a man’s world. Oh, and she’s also the 2018 Victorian of the Year, 2017 Melburnian of the Year and 2018 Victorian State Government Outstanding Contribution to Sport Award!

Basically… this woman has stared down adversity of all kinds and prevailed beyond doubt.

So, if you’re like us and are very excited to hear what this wise and wonderful woman has to say about investing and, indeed, life… then you MUST check this episode out, folks!

Also, special shout out to our listener Jill Stewart for suggesting such an awesome guest!! If you’ve got a guest idea yourself, feel free to let us know who you want to hear from HERE 🙂

As usual, there are a few resources today folks! So here goes…

• Escape from the City on iView: https://iview.abc.net.au/show/escape-from-the-city
• Ep. 55 – Investment savvy mortgage broker and why interest rate is not king?: Listen here
• Money Hacks series: Join here
• Ep. 238 – Money & Mental Health: Why there’s more to it than you think… Chat with John Mendoza Director of ConNetica: Listen here
• Australia’s New Banking Code: https://www.ausbanking.org.au/campaigns/new-banking-code/

The Top Things We Talk About >>>

• How exactly did Susan transform herself from humble beginnings to impressive wealth?
• Where did her drive come from?
• How did her first husband Angelo, look at life and work? Why?
• What was the origin of their property story?
• How did Susan and Angelo start their first 16-units development?
• Where did her desire to learn come from?
• How much did her “very own” property cost when she first bought it?
• How did she get a loan when most lenders wouldn’t lend in only a woman’s name?
• How much was she paying interest on the loan?
• How quickly were they growing their development business?
• When did they cross the threshold into financial wealth?
• How did Susan balance grief and running a business?
• Did she have any female peers?
• What does she now think is “true” wealth?
• How has mindset influenced her success?
• When did she get really involved in the Western Bulldogs?
• How long did it take to get women’s AFL over the line? How’d she do it?
• Will there likely be a cure for type 1 diabetes?
• What does Susan regret or would do differently? Why?

P.S. Looking to get a free copy of Susan Alberti’s book, The Trailblazing Story of Susan Alberti – The Footy Lady? Click here and tell us which part of Susan’s story had the most impact on you!

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Folks, you’ve heard us say it before and we’ll say it again… “The State of Your Wallet affects the State of Your Mind”…

… and this isn’t just a telling quote we throw around willy-nilly… it’s very real and is, in fact, evidence-backed. The truth is this… money worries and mental health are DEEPLY entwined. If you’ve got financial stress then, chances are, you probably feel like your whole life is out of whack… and this can seriously interfere with your mood, mindset and overall health!

So today we’ve managed to rope in a very special expert who’s dedicated his professional life to mental health matters and suicide prevention — John Mendoza Director of ConNetica.

As well as shining a light on the connection between financial problems and mental health issues, John’s career has included several senior executive positions, such as the inaugural Chair of the Australian Government’s National Advisory Council on Mental Health, the CEO of the Mental Health Council of Australia and CEO of The Commonwealth Statutory Authority, the Australian Sports Drug Agency.

Folks, if you’re wondering, “Why the switch to mental health?” or “Where does property investing fit in here?” or “Why so serious?”…

We’ll be completely honest… while not related at a tactical level to property, finance and money management… this IS related at a strategic level — ‘cos

no matter if you’re building wealth, or just trying to stay afloat and living paycheck to paycheck, or drowning in debt… or anywhere else on the financial spectrum… you’re NOT immune to this reality (unless, of course, you’re a… dunno… a cucumber, or something else non-human).

Oh, and folks… another quote for you… “The Most Important Asset is The Investor Themselves” 😉

Here’s the Free Resources mentioned in today’s episode…

• Ben’s video on rats behaviour: Watch here
• Act-Belong-Commit: https://www.actbelongcommit.org.au/
• “Chats for Life” App (helps you plan a conversation about someone you care about): https://au.reachout.com/tools-and-apps/chats-for-life

Episode’s Top Teachings…

• How’d this convo come up on the Twittersphere in the first place?
• The relationship between mental health, suicide and money management
• What age is most affected by suicide? How can you prevent it?
• What’s the strongest factor that protects people in this space?
• The “B Grade Movie”… and how it’s influencing your mental health
• Who’s most at risk with mental health problems?
• What about perfectionists? (aka Bryce… back in the day)
• What’s the solution here?
• The “ABC” Steps to Good Mental Health
• What should Financial Planners and Advisors assess?
• How can you help someone who isn’t coping?

P.S. If you’re struggling with your finances or you want to be better with your money, please make sure you check our Free Money S.M.A.R.T.S Platform

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Folks, we’ve got your voicemail messages… and, yep, today we’re giving you our reply!

‘Cos it’s out favourite day of the month… Q&A Day where we answer YOUR SpeakPipe Questions! And, we’ve gotta admit… a few of you folks have asked us about “The Elephant in The Room”… aka… a certain Barefoot Investor and how Scott Pape’s money management differs from our Money SMARTS system. Oh, and of course, there’s also some contrasting views on property as a long term investment as well… which, as you likely know, is something we’re pretty keen on…

So let’s tackle the answer, shall we??

Before we get into your questions, here’s the resources mentioned today…

• CoreLogic’s Auction Clearance Rate Bounce
• TPC Live — Last Day TOMORROW Friday 21^st June (GET FULL DETAILS)
• Free Copy of Make Money Simple Again — Choose Your Adventure!

Question from David on the Barefoot Investor…

Hey guys, Dave here. Today I wanted to talk about the Elephant in The Room… or at least the bear in the room. I have just finished listening to the Barefoot Investor audiobook — and it’s safe to say I’m am a little bit confused. While Scott’s money management method seems to align with yourselves, “Mojo” and “Fire Extinguishers” are a far cry from Money SMARTS. And then came a bomb shell… “Property Investing is a Dud Investment” and, yes, as he suggested, my eye was twitching.

Scott had some pretty negative things to say about property, particularly over the long term. Mainly because the last 24 years has been an economic outlie, given the negative gearing benefits and large pop growth due to baby boomers, suggesting that “doubling in 7 – 10 years” rule, which of course is a rule of thumb, over the next 40 years would be near-on impossible. Then he counteracted his whole argument with compelling evidence of strong long term growth in bonds, shares and index funds. Now, don’t get me wrong, I took some really good nuggets out of his book, but the differences between your method and his are STARKLY different. I mean, he doesn’t even suggest putting money in offsets. Can you please help me decipher this book? Thanks guys, love your work.

Question from Shane on buying a unit in a company trust…

Hi guys, my name’s Shane. Am just wondering about buying a unit in Sydney under a company title. Could you please explain any pros and cons for this type of unit. I’m looking to rent it out for 5 years then move into it myself and keep it for the long term. I appreciate any advice you can give my and thanks very much! Bye.

Question from Aaron on Bank Structure as a Rentvestor…

Hi Ben and Bryce, my name’s Aron, absolutely love your podcast. I binge-listened to 220-odd episodes in 3 months when I first found out about it. I just have a question here in regards to structuring your bank accounts. We rentvest. I understand if it’s a PPOR, you’d want all income coming in to that offset account, but because we rentvest, do you have just one bank account where all the rent and all the mortgages come out from, or do you have a separate bank account for each property, where the rent and subsequent mortgage comes out of, didn’t manage to hear anything about structural bank accts in any of the podcasts, so apologies if I’ve missed it and you have discussed it. But I don’t think I’ve heard anything about it so very interested to hear your response on that, especially if you do end up having 5/10 properties. Look forward to hearing it on the podcast at some stage. You guys are absolute legends! Cheers.

Question from Craig on selling a property at a loss or wait to recoup loses…

Good afternoon The Property Couch, my name’s Craig and I have a question. My partner and I currently own 3 investment properties between us. 2 of these properties are performing quite well, in terms of growth and low upkeep. The third investment property in Darwin was originally bought as a PPOR and is not performing well as an IP. The market is at the 32% downturn and is unlikely to recover any time soon. My question is… Should we sell the property at a loss and still walk away with about $30,000 to reinvest into a new or existing investment, OR should we hang onto this investment long term with the intent of recuperating our losses, even though this property costs us about $8K a year? Thank you for your time.

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Want to hear from a guest listener who was Snagged by Spruikers and Bought Off The Plan? ….. AND STILL somehow managed to turn their property portfolio around??

Yep, it’s an Epic story, folks! And today’s guest, Danson Kwok, sure has HEAPS of tips & tricks — incl. how to maintain a solid mindset even through dark times — to share with you!!

‘Cos his substantial multi-million dollar property portfolio has now been tweaked and steered back on track through the sale of certain properties and learning the true art of manufacturing equity!!!

So. What triggered all this? AND how did Danson and his wife maintain their belief in property to get to where they are today?

… Let’s find out!!

 

Oh, and folks….. we’ve got a bit of “backstage” info to share with you…

We’re filming our FIRST EVER ONLINE COURSE!!! And we wanna invite you to come along live and watch it for free!

Here’s the deal, right… We get that everyone’s at different stages of their journey. Some of you folks are cool just to get your info from the podcast each week (which we LOVE!)… and some of you are itching to get your hands on more valuable content… BUT… for whatever reason…you’re simply not in a position to seek advice OR maybe you want to have a crack at doing it yourself (DIY Style)!! SO we’re creating a 6+hour online course consisting of OUR ABSOLUTE BEST GOLD… which we’ll later sell for a few hundred bucks for the folks who want that Next-level knowledge!

But… ‘cos you’re already in our tribe, we want to let you access it for FREE… one-time while we’re live…!!

FREE LIVE ONLINE COURSE: Everything You Need to Know to Earn $2,000+ Per Week in Passive Income

CLICK HERE FOR THE AGENDA: What we’re teaching on each day – Weds 19th, Thurs 20th. Fri 21st @ 1PM -3PM

And here’s the list of resources mentioned today!

• Join PICA here: www.pica.asn.au/join
• MMSA Facebook Group: Join here
• Effie’s Book Giveaway: Participate here
• The Mortgage Broking and Apprentice role: Apply here
• CoreLogic’s May Data Chart Pack: Find out more here

 

… Back to today’s show!!! What are you in for??

• How did they begin their investing journey?
• How did he get his advice when he was living in Singapore and investing in Australia and New Zealand?
• How is Singapore real estate different?
• What were the types of properties that DIDN’T go well??
• How many Off the Plan purchases had Danson and his wife purchased?
• What was that first property?
• Did they come with a rental guarantee? Why?
• How do these Spruiker expos work? How much was their commission?
• When did he find out his off the plan properties were duds?
• What was the reality of Off the Plan pain?
• Did these properties cause problems with bank valuations?
• How did he get his finance when he was overseas??
• How do offshore banks work?
• How many properties did they keep in their portfolio once they moved to Australia?
• How did he continue to take action even though he made mistakes?
• Is he still buying properties?
• How’d he ride the credit crunch?
• How can you manufacture equity?
• What are the 5 ways to manufacture equity? Who is it for?
• Is renovation like any of the Reality TV shows?
• What was his journey with subdivision like?
• Is there a Rule of Thumb for strata properties?
• How much does it cost to turn one lot into 2 lots?
• What should you keep in mind with subdivisions?
• What happened when they were on the end of a fake invoice?
• How much was at stake? Did they get their money back?
• Final words of advice!

Make sure you tune in today!

Don’t forget… if you’re interested to get a copy of Effie’s book, we’ve got TWO copies to giveaway!! Just tell us your #1 Money Hack on Facebook for your chance to win!

PLUS we’ve been doing a couple of LIVE this week! The feedback had been pretty good so so if you haven’t noticed it on Facebook yet, here’s the replay.

And….. If you’re interested in our TPC LIVE 2019 – 3 Day event, check it out here!