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Bonusisode – Market Wrap with Nerida Conisbee

Folks, this Bonusisode features Bryce’s Live chat with REA Group’s Chief Economist Nerida Conisbee on today’s Monthly Market Wrap… which they kicked off on Facebook Live!

So, what shape is the market in?

 

The Top Insights in this Bonusisode:

  • Nerida’s guess at tomorrow’s cash rate – will there be another drop?
  • Economic insights
  • Auction Clearance Rates
  • The locations with house price growth
  • Market Wrap around the States – Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart

 

Plus, The Top Performing Properties from the month:

  • The Most Viewed Rental Property
  • The Most Viewed Residential
  • The Most Expensive Property Sold
  • The Most Viewed Property Going To Auction This Weekend

Want to see these properties? Click here to View the Properties (all are in the Comments section)

P.S. Want more from Nerida?

RBA June 2019 Announcement – Why there’s more to this Rate Cut than you think…

So… no surprises here folks. We’ve got a rate cut!

Phillip Lowe has already indicated RBA’s decision to cut the cash rate two weeks ago at his Address to the Economic Society of Australia.

Nonetheless, we are still excited to share that the cash rate is now at 1.25%.

AND there are heaps to unpack today folks and is probably the longest RBA Commentary that Ben has ever done. Before we get there, here are a few resources that he’s mentioned:

 

Now, let’s dive into RBA June 2019 Cash Rate Announcement!

 

 

p.s. And here’s a little teaser. 😉

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

232 | Are All Tenants the Same?

Have you ever thought about WHO will be living in your investment property?

Chances are, you have! Because folks… an investment property is pretty useless without a tenant/s in it!! After all, you need these guys to help pay off your mortgage!

So. Are they all the same??

What TYPES of tenants are out there and what can you expect from each one?

Well, here’s the deal… we think there are FOUR tiers of tenants.

Let’s meet them, shall we?

Oh and FYI: Ben’s “Did You Know” is off the charts… we don’t think we’ve ever seen him this prepared in our podcast history — so make sure you stick around for that!!!

Resources mentioned in today’s show:

Here’s what you’re in for…

Loved the episode? You might also like:

231 | Q &A: How Will Changes to Negative Gearing Impact Investors?

Have you ever wanted to know how the changes to negative gearing will affect YOU???

Because folks, let’s face it… Labor’s policy to turn the lights out on negative gearing isn’t just going to affect the property market and potentially the ENTIRE Australian economy… the policy IS going to impact property investors, whether we like it or not.

So we want you to be prepared and know what’s coming our way! And that’s why earlier in the week, we asked our Facebook Tribe, “What’s your #1 Question on Negative Gearing?”

And, as you can imagine, today we’re going to be answering as many of these questions (there were LOTS) as humanly possible (well, without having this episode drag on for a day and a half!)

We’ll also be covering WHAT EXACTLY Labor is proposing to change, when these changes are officially kicking in, how it impacts the losses you can claim etc. etc. etc…

(See below for FULL LIST of Questions).

A bit of housekeeping…

*New* ENCORE WEBINAR ANNOUNCED: How to Master The Property Investment Formula That Works in Any Market

When: 2:00PM, Friday 10th May 2019

CLICK HERE to Register & Get FULL Details (Last Chance Encore Webinar)

or go to www.thepropertycouch.com.au/webinar.

.. And PICA is also throwing a webinar TONIGHT at 7:00PM Thursday 9th May including a Market Update from Tim Lawless, Director of Research at CoreLogic as well as a deep dive into Negative Gearing and Labor’s policy. To watch, you need to be a PICA Member (or become a member for $5) — If you want to watch, you can find out more about the PICA webinar HERE.

FREE RESOURCES MENTIONED:

  • To Access Ben’s Negative Gearing Series CLICK HERE
  • To Get Ben’s Latest RBA Cash Rate Announcement CLICK HERE
  • We’ve announced the winner for our Denise Book Giveaway! Brook Lyn, if you’re reading this, please get in touch with us on Facebook or [email protected]. And for the rest of you who participated, thank you so much as well! We’d love to give you a copy of our newest best-seller, Make Money Simple Again. Just get in touch with us with your name and best postal address and we’ll send it to you!

THE EXACT QUESTIONS WE ANSWER:

Thank you for sending in your question to our post below as well! Let’s jump in now and of course, if we’ve answered your question, please do get in touch with us on Facebook or [email protected] and let us know which book would you like (Make Money Simple Again or The Armchair Guide to Property Investing), your name and best postal address!

Question from Scott
If negative gearing is scrapped and grandfathered what will be the effect on a property you withdraw equity from after the rule is put in place? Will the increased debt on the property keep it negatively geared when you have done the release after the potential rule is put in place?


Question from Pat
If you currently have a PPOR, will you be able to draw equity and use as a negatively geared investment loan AFTER Jan 2020 or whenever they propose the change happens?


Question from Nicholas
If you currently have a PPOR that you plan to change to an investment property in the future, is the grandfathering based on when the property is purchased or when it is switched to investment?


Question from Michelle
Looks like my question is along similar lines to above so no doubt this will be covered. We’ve just purchased PPOR but may look to turn into investment in future. Queries around the timelines for both living in now, then renting out, then selling (6 year rule?) and what impact new government legislation may have?

Question from Jake


Question from Jake
Is it the property or the loan that is grandfathered? (Property I assume.) And what, if any, are the considerations when refinancing, assuming the new changes come in?


Question from Anne
If Negative Gearing is scrapped on established properties and only allowed on new constructions, but the construction industry is already slowly to a halt, and capital growth often in the red, how viable is Property Investment as a means of securing your retirement in the next 30 years?


Question from Martin
What is the experience with this type of tax scheme in other countries? Is there evidence of its impact on the real state bubble?


Question from Karen
Why are there policy attacks on LRBA property borrowing? Apparently based on the evils and risk of negative gearing… however, borrowing does not necessarily mean negative gearing, it just means gearing.

Question from Ray


Question from Ray
Many economists predict an increase in rental prices of negative gearing is abolished. Since only the initial part of the loan is negatively geared (as it is later positively geared and therefore taxable), will this have as much of a negative impact on the property market as predicted? Or is it the combination of the abolishment of negative gearing as well as the reduction in capital gains discount that will cause the knock on effect over time and make property investment less attractive?


Question from Simeon
Are there any other countries without negative gearing that we can compare with to predict the direction of Australia’s investment property market?


Question from Anastasia
I’d be interested to know your thoughts at a more macroeconomic level around what affect you think this might have on the property market over the medium term. One thing that comes to mind is potentially an increase in larger blocks being subdivided/developed into multiple townhouses for tax purposes.


Question from Jillian
Is negative gearing based on a whole portfolio or individual properties? One is positive and one is negative — do they cancel each other out in your tax return or are they assessed individually? And will this continue to be the case is Labor get in?


Question from Timothy
What would be your preferred solution to the problem? Negative gearing capped to % of income? Fixed maximum deduction? Or something else?


Question from Leo
When will the next election be after the upcoming election? For us investors to know how long we have to purchase some properties.


Question from Alex
Love the content guys! In your opinion does the removal of negative gearing make implementing The Four Pillars any more difficult, and would you recommend purchasing my first property before or after January 1st (when the grandfather rules will take place)? Would love to hear your thoughts as this is currently my big block to buying!


Question from Dale
It seems to be argued that negative gearing should not apply to the super wealthy who own 5, 6 or more properties. Should it be based on the $$ value on a property or portfolio rather than the number of houses owned?


Question from Liam
Unfortunately, it seems inevitable that it will happen; is there any positives at all we can take from it? Does it change any fundamental principles when it comes to property investment?


Question from Tom
One thing that has not been made clear in all the discussion is what happens to the investment losses if you were to buy an established property after negative gearing was removed? Are the taxable losses you incur simply lost or do you hold onto the losses and they can be used to offset future investment income once the property moves into a positive geared position down the track? I know this is the case for some countries that do not allow negative gearing and then it just makes it a timing issue as you access these benefits in the longer term.

Question from Matt


Question from Matt
With regards to the grandfathering that is proposed, is it the property that is grandfathered or the loan? How do they determine this? What happens if I refinance etc.


Question from Tania
I would like to understand better the reasons why Labor repealed the cancelled negative gearing in the 80s. Surely there are some lessons there that we can look to. So I guess the question is, What were the outcomes last time Labor cancelled negative gearing that caused them to re-introduce it?


Question from Mustafa
Most experienced property investors have stated that negative gearing is not a property investment strategy, but most property investors rely on it. If negative gearing is not a property investment strategy (not saying it is or isn’t), then why is it such a hot topic of discussion ever since Labor had intentions of removing it if won? Just curious.

RBA May 2019 Announcement – Have they finally pulled the trigger?

With a zero inflation for the quarter and an upcoming election, this month’s RBA Cash Rate is probably one the most interesting one we’ve had for a while!

It’s that time of the month again which means the RBA Board has met and announced the official cash rate.

And wow! There must be an intense discussion going on within the board. Here’s a quick update on what’s been happening:

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