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Episode 388 | Why do people sell off-market properties?! – Q&A

Folks we have received one of the greatest compliments bestowed upon us in this episode… 

We have been called… 

THE NETFLIX FOR PROPERTY INVESTORS! 

And folks that has absolutely made our day! Thank you, Andrew!!  

But we’re guessing if you’re here, you haven’t just come to hear us celebrate our new title. 😉 

You’ve probably been like us and Jordy – who asked the question – and wondered “Why do people sell off-market properties??” 

And we’re so excited to dive into this because honestly, we think the answer is going to surprise you!  

We’ve also got a fantastic line-up of questions for this week’s Q&A episode, like… 

  • How do you actually put the big rocks in the jar first?! In this case, our question-asker Clancy is having to choose between buying an investment property or home first… 
  • Is it possible to have a multi-purpose investment that actually works??
  • How can question-asker Demi allay her family’s concerns over her investing in her third property within a year?

Listen in now folks, we’re streaming tons of audio gold (Since – you know – we’re the Netflix of property investors 😉)  

 

Free Stuff Mentioned… 

 

Questions We Answer…

Jordy on Why People Sell Off Market Properties  

“Hey Bryce and Ben, 

How you guys going? 

Just had a question around off market opportunities. You hear that there are so many off market opportunities out there that they actually make up nearly more than listed properties. 

I’m just wondering why there would be so many real estate agents who are working on the seller’s behalf wouldn’t want to take it to market to get as much competition and try and get the best price.  

Obviously, there’s times when someone might want a quick sale, but outside of that it just seems kind of just goes against logic, so if you guys could have a discussion about that. Thank you.”  

 

Clancy on Putting the Big Rocks in the Jar  

“Hey property couch guys, 

Long-time listener here. I’ve got a question for you around putting the big rocks in the jar and just having a better understanding of what that means. 

Our current position is me and my partner own a unit on the Northern beaches in Sydney approximately worth 1.4 something, with around 400 and something in equity in that property. 

Over the next sort of five years, we want to move into a house. It’s also in the northern beaches and we also want to start our investment journey in terms of buying investment property. Question is what should we do first? 

Should we have our next goal be behind the house or the next goal be behind the investment property? Everyone in the family says we’d be crazy to buy an investment property first. 

It kind of makes sense to me that that would be the next option. I’d really appreciate your guy’s insight and maybe help me understand what putting the big rocks in the jar means I know that’s an important concept, but I’m just not quite there conceptually, thanks.” 

 

Andrew Kringas on Lifestyle Property purchases 

G’day Ben and Bryce.  

Big shout out to you guys and the podcast. I kind of refer to this as the Netflix for property investors. 

Like a lot of your listeners, I got into you a couple of months ago and have not been able to stop going through all the episodes. Obviously starting up from the beginning and then ended up coming to some of your newer ones.  

My question is really in relation to lifestyle property that you referred to and there has been obviously a really big surge in the past two years of people buying properties in regional, Victorian coastal areas, and looking at using it as a holiday destination for themselves, but also seeing how they can make some substantial rents during peak holiday periods and also use the opportunity to let family use it. 

 Just wondering what your take is on this and with the pending interest rate rises, is it something that you guys look at or do you steer away from it? Similar to high rise apartments. Would be really happy to hear your thoughts, thanks. 

 

Demi on Advice to family after 4 properties 

“Hey Bryce and Benji.  

My question is around family, so my family been watching me. We’re about to purchase our third property in a year, so we have 4 all up. I’m only 25 and my family will get very nervous about it. I have buffers. I have everything. What would you say to them to make them not stress out? 

Thank you.”  

  

Here’s some of the gold we cover… 

  • 2:05 – Focus more on the H___ than the G___! Let us know what yours are… 
  • 4:34 – Question 1: Why People Sell Off Market Properties  
  • 9:00 – Remember folks, just because it’s off-market doesn’t mean… 
  • 11:05 – Real Estate Agents are influenced by E____ too! 
  • 12:24 – Don’t fall for the THIS myth 
  • 16:12 – Question 2: How to put the big rocks in the jar first 
  • 17:48 – It’s a relatively easy decision if you take out… 
  • 19:35 – What we would recommend! 
  • 23:52 – Question 3: Lifestyle Property purchases (Netflix for property investors?! We are HONOURED mate!)  
  • 25:20 – Can you have a multi-purpose investment? (and Ben’s predictions for the regional exodus trend!)  
  • 28:23 – Will the Lifestyle Property Purchase trend continue? 
  • 33:36 – Question 4: Allaying family concerns over investing 
  • 35:24 – Why you should test your buffers…  
  • 38:18 – “Be a student of history!”  
  • 42:10 – Folks, remember there is no “right” way to invest… 

And… 

 

Episode 383 | How to create the optimal mindset for investing – Q&A

Let’s face it…  

Money is an emotional asset folks. Especially when you realise, you’ll never have “perfect” knowledge before investing… 

But we think that shouldn’t stop people from investing!  

In fact, we think it’s something that everyone should be okay with, especially if you’ve covered your bases! That’s why in today’s episode we’re uncovering:  

  • What these bases are… 
  • How to control your emotions around money… 
  • Why people fall into an analysis paralysis… 
  • And ultimately how you can create the optimal mindset for investing!  

But that’s not all – of course – it’s Q&A DAY!! (Woohooo!)   

We’re talking all things Buyers Agents: When and why you should stick with your current agent, the difference between specialist and regular Buyers Agents… 

PLUS, we’re unpacking the upcoming generational wealth transfer that will flow from Baby Boomers… 

And explaining key factors you should understand, or have in place, BEFORE deciding to upgrade houses.     

These questions provide some great case studies, with one proving why buying properties from other family members may not actually be the best solution for everyone!   

Questions are listed further below 👇. Enjoy!  

 

Free Stuff Mentioned 

 

Here’s the questions we answer… 

Jay Sanderson on Low Stock for Properties 

“I have only just started my investment property journey and have acquired one passively geared property which I’m about to develop further. 

My current buyers advocate is trying to find additional properties for me to purchase and I have the funds approved but he is telling me that inventory is short at present. 

What would be your advice here, look for properties myself or speak to additional buyers advocates?”  

 

Leino on Buying Off-Market From Mum  

 “Hey guys, I just started listening to your podcast and have listened to the first 70 episodes in just over two weeks. I have also listened to a few of the latest ones and now have the ‘property bug’. 

Our situation – currently we have a PPR in Townsville in a nice area, which has seen some growth and we have a good amount of equity at the time of writing this. 

My wife and I have a good, combined income and a very good yearly surplus from which I want to start purchasing a few other properties. 

I recently spoke to my mother who owns two properties out right in the sunshine coast (specifically Mooloolah Valley) where the median house prices have skyrocketed. Both houses are on very large blocks (one is a hectare the other is 1 1/2 acres). 

My brother is currently renting one of them for fairly cheap and may stay for a few more years. Due to my mum’s financial circumstances, they did mention maybe selling the larger block as their super is dwindling away and they are just over the cap for a pension. 

 My question is: Would it be worth buying the property from them at possibly 200-300k under median value, with an interest only loan and servicing the debt until my brother moves out at which time, we could increase the rent to a larger amount and move towards positive gearing? 

If we buy privately off them well below median, we will start off with a massive amount of equity, and though it does have great owner occupier appeal, it probably doesn’t tick off every investment property feature that everyone talks about. 

I’m currently 40 years old and wish to retire around 60. Ideally, we would like to knock down the house and rebuild our forever home (on the block) down the track if we were to buy it. 

I acknowledge you don’t have all the info required, but if you could provide some tips or things to consider, that would be greatly appreciated. 

Sorry if something similar has been answered before. 

[PS I have booked in to speak with your team, but it isn’t for a little while due to availability]. 

Kind regards, 

Leino”  

 

Andrew on Upgrading or Buying Another House 

“Hi, we are a small family with 2 kids, and we own one property which has paid off all mortgage. 

We just wonder should we sell this property to upgrade to premium house or keep the house and buy another house to live. 

We make 130k after tax, so not sure we should focus on cash flow or captain gain property.” 

 

Winslow Tam on Optimal Mindset  

“Hi Ben, 

Hope you had a great weekend. 

Here is my question… 

Considering that investing can [be] taken quite seriously by some people, what is the optimum state of mind that individuals need to have when performing their best as an investor? 

I’m referring to things such as motivation, mindset, emotional, etc. 

I understand that investing is for the long term – somewhat like a marathon instead of a 100m sprint.  

What are some of the things that investors should do to get their state of mind prepared for investing? 

It would be great to hear your thoughts. Look forward to hearing from you. 

Regards, 

Win.” 

 

Here’s some of the gold we cover… 

  • 2:16 – Make sure you sign up for Ben and (previous podcast guest) Antonia Mercorella’s PICA Webinar on Queensland’s housing market!  
  • 4:25 – Folks, do THIS to have a great relationship  
  • 7:52 – Leave us a question here! (Did we mention you could win a FREE Start & Build course?!) 
  • 9:00 – Question 1: Low Stock for Properties 
  • 9:55 – When and why you should back your Buyers Agents  
  • 11:06 – Where should you buy when there is low property stock? 
  • 13:28 – You CAN ask your Buyers Agent these things… 
  • 18:23 – The difference between regular Buyers Agents and specialist Buyers Agents 
  • 21:33 – Question 2: Buying Off-Market From Mum 
  • 23:42 – Why we think there’s more opportunity for your mum…. 
  • 27:26 – What’s best for Leino and his brother?  
  • 30:33 – Dealing with the generational wealth transfer  
  • 37:26 – Question 3: Upgrading or Buying Another House 
  • 37:53 – The reason you should know your priorities  
  • 40:07 – How to make the invisible visible  
  • 41:45 – Folks, it comes down to ____ cost or _____ cost  
  • 44:35 – We’ve found most people choose… 
  • 47:36 – Why having a finance strategy is important BEFORE you decide!  
  • 49:08 – Question 4: Optimal Mindset 
  • 49:52 – Please accept this fact folks… 
  • 50:55 – How to create the optimal investor mindset  
  • 52:42 – Why people fall into analysis paralysis…  
  • 56:12 – Be a farmer, not a hunter!!  
  • 57:47 – Practices to control your emotions around investing!  

And… 

 

Episode 366 | How to Break into the Property Market?

Folks, the last time we unpacked a case study on the podcast was back in Episode 64 on 19th of May 2016. (WHAT?!!!)

So… you can imagine how excited we were with this episode, can’t you? 😉

In fact, Ben said this at the very start…

“MAAAAATE…. This is a MEGA episode!”

And no, he’s not exaggerating!

What we are doing today is a bit of Myth Busting coupled with some data, graph and cashflow modelling. And here’s a spoiler… You’ll be very surprised at our proposed strategy for this case study cause it’s not exactly what we’ve been banging on about for the last 300+ episodes.

Why are we proposing this then?

Well….

Cause we are going through a rapid price growth cycle and our strategy needs to be flexible and agile!

But before you start tearing off those pages in your custom-made The Property Couch Textbook (just joking but if you have one, please let us know!) remember this…

…. The fundamentals are still very much the same 😉

 

Free Stuff Mentioned

  • 334 | Bernard Salt: The BIG Shift In Australian Property! – Listen here
  • 308 | Pain & Gain: The Wealth Effect & The Housing Affordability Debate – Chat with Eliza Owen from CoreLogic – Listen here
  • PICA’S WEBINAR on Estate Planning – Watch Replay here.
  • ABC News Most Popular Australian Story on Gayle and Mac Shann – Read more here
  • John Kehoe’s Article on Financial Review – Read here
  • FREE Downloadable! Download here or fill in the form below…
  • Free Book: The Armchair Guide to Property Investing! – Get Your Copy Here
  • (85% OFF) Here’s the link to our Black Friday Sale!! >> https://thepropertycouch.com.au/blackfriday
  • (25% OFF) Get Access to Select Residential Reports here! – Don’t forget to key in this discount code: SRPRPT25

  

We recommend you to…

Download this free report before you proceed folks! We’re going through some charts and graphs today so if you’d like to play along at home, fill in your details below and let us know where to send them to! 😉


  • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?

  • This field is for validation purposes and should be left unchanged.

 

Here’s some of the gold we cover…

  • 1:40 – Thinking about your Estate Planning? Check out PICA’s webinar here!
  • 3:03 – THIS Quote from James Clear is epic folks!
  • 4:51 – What is the Real Myth that we Busting today?
  • 6:44 – If you feel like it’s all impossible…. Check this part out.
  • 8:27 – The start of the STRATEGY segment
  • 9:02 – What are the 5 Types of Investors?
  • 11:31 – The TWO Pathway to Equity that we are focusing on today…
  • 14:03 – Moving on to TACTICS!
  • 14:35 – How much deposit is needed for this strategy??!!
  • 16:06 – Practical tips to boost your borrowing power
  • 17:29 – Let’s be honest… here’s what you need to sacrifice.
  • 21:28 – Asset Selection 101
  • 23:11 – What are the TWO Asset Aspects a millennial should focus on?
  • 25:11 – How do you fast track your research for this strategy?
  • 26:59 – THIS is the price range we’re looking at today…
  • 28:37 – What are the areas that you want to stay away from?
  • 32:03 – What’s our definition of “Buying Below Market Value”?
  • 34:11 – Over _ _ _ _ _ _ _ _ _ _ _ _ : One of the Core Risk for this strategy
  • 36:00 – The biggest bang for buck you get in terms of dollar down versus dollar return is…
  • 39:11 – Here’s when you should consider sub-division
  • 41:21 – Serious about research? Which data you should focus on?
  • 43:30 – Everything that you need to AVOID!
  • 47:07 – Download this Free One Pager here before you proceed!
  • 47:45 – The hero of today’s episode… our CASE STUDY!!

And…

  • 1:05:28 – Our BLACK FRIDAY Sales!!
  • 1:11:11 – What’s making property news – Soaring stamp duty ‘bracket creep on steroids’

 

 

 

 

 

 

Episode 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.

 

 

 

Episode 343 | “Pass Go & Collect $200” – 6 Property Lessons From Monopoly!

Ah, Monopoly – the classic board game… chances are you’ve got fond (or maybe even frustrated?) flashbacks playing it…

[… Nothing quite like the feeling of “Passing Go”, getting a quick cashflow lift, and then proceeding to bankrupt your loved ones in a friendly-but-no-so-friendly game of Monopoly… 😅]

Well folks, Did You Knowthe 100-year-old property-trading game actually has 6 Proven Property Lessons that you can (and should!) apply in real life!!

Yep. And here’s the deal… today we’re unpacking exactly how you can apply these key lessons from Monopoly to YOUR own lifestyle design!

Look, this episode’s a bit of fun BUT, most importantly, is full of timeless takeaways that’ll shake up the way you look at property investing… (and help cement the wisdom!)

 

Can You Guess The 6 Property Lessons…? 👇

  1. Always Be __
  2. The Most __ __ Is Not The Best
  3. Focus on __
  4. __ Your Investments
  5. __ Matters
  6. __ __ Is The Key

 

Tune in now to get the answers!

 

Free Stuff Mentioned

 

Here’s A Bit Of What We Cover…

  • 02:49 – Your BIGGEST Competitive Advantage!
  • 04:24 – Wait, you’ve NEVER heard of Monopoly..!?!
  • 05:43 – Bryce first thought you had to do THIS when negotiating…
  • 07:46 – LESSON 1: Always Be __
  • 08:39 – Trying to buy everything you land on… (and The Meltdown!)
  • 11:43 – How to Hack Probability WITHOUT Gambling…
  • 13:09 – Things we ask ourselves BEFORE we purchase anywhere
  • 13:22 – Can you get it right 100% of the time!?!
  • 14:17 – The block of dirt Ben almost bought…
  • 15:14 – LESSON 2: The Most __ __ Is Not The Best
  • 15:28 – When you’re caught up trying to buy Mayfair and Park Lane…
  • 17:48 – The most expensive properties on Monopoly… but in Australia!
  • 19:55 – LESSON 3: Focus on __
  • 20:18 – How to recover when you pick The Unlucky “Chance” Card
  • 23:20 – When the borrower is at the mercy of the lender…
  • 25:06 – The BIG yield between the “red” and the “blue” properties!
  • 25:47 – LESSON 4: __ Your Investments
  • 28:26 – What Monopoly teaches us about BORDERLESS investing…
  • 32:19 – LESSON 5: __ Matters
  • 32:45 – What squares are MOST landed on in Monopoly? (And what does this hint at when you invest in property…?)
  • 37:19 – LESSON 6: __ __ Is The Key!
  • 40:32 – Robert Kiyosaki’s cashflow game…
  • 43:42 – What the creators of Monopoly quickly realised…
  • 44:38 – 7 reasons why playing Monopoly is a great for kids!
  • 46:42 – Bryce’s version of Monopoly at home (LOL)
  • 46:57 – The Reality of Retirement WITHOUT a passive income…

 

 

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