Property Investment Archives - Page 21 of 30

068 | Common complaints we hear from property investors

By The Property Couch June 16, 2016 in Podcast

Subscribe On Itunes Subscribe On Android

It has been some time since our last episode on investing and mindset framework so this time, Bryce and Ben will be unpacking the common complaints they hear from property investors. Here are the top 9!

Wrong asset
No buffer in place
Mentoring was actually salesmanship
Not maximising tax depreciation with Quantity Surveyor
Solo sport
Self property management (Check out Episode 31)
Poor cash flow management (Check out Episode 3)
Not starting early enough
Selling

Apart from that, they will also be sharing some insider information on ‘offers’ they’ve received from property spruikers out there, Labor’s debate on negative gearing and the changes on foreign buyer stamp duty. Also, if you are interested in the BMT Tax Depreciation Application Form mentioned in this podcast, just fill in the form below and we’ll send it to you right away:

Free resources: BMT Tax Depreciation Application Form

Name
First Last
Email*
Name
This field is for validation purposes and should be left unchanged.

75989

Other resources mentioned in this episode:

Property manager checklist – Download here
Ben’s Money Magazine article – Read here

PS: We’ll also be holding a Live Q&A Event on Wednesday, 29th of June at 8:30 pm. Check out our Facebook page for more information!

If you like this episode (Common complaints we hear from property investors), 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/

066 | Winter is coming and the air will be colder up high

By The Property Couch June 2, 2016 in Podcast

Subscribe On Itunes Subscribe On Android

Well, technically winter is already here. However, we will be talking about the Property Market in this episode and for all of you who are a fan of Game of Thrones, you’ve guessed it right. It’s not going to be a good news story.

Now, you’ve heard us talking about the danger of high-density developments before but this time, we are hoping to solidify our message by sharing some numbers with you. It is not a secret that we’ve seen a whole lot more of high to medium density apartments coming into the market in the last 24 months and a lot more will be completing in the next 18 months. Below is the table that Bryce and Ben were talking about in the podcast.

Capital city	# of Unit Sales	Average Annual unit sales past 5 years	Total New Units next 12 mths	Total New Units next 24 mths
Sydney	34,216	43,442	34,300	81,696
Melbourne	28,506	30,781	29,541	80,503
Brisbane	15,880	14,932	16,652	44,511
Adelaide	6,988	6,195	2,581	6,002
Perth	5,331	6,834	7,031	13,797
Hobart	1,026	1,005	201	442
Darwin	864	1,026	985	1,256
Canberra	3,384	3,929	811	2,922
Combined	96,195	108,144	92,102	231,129

^{* This data is an extract from CoreLogic’s article dated 16 May 2016 called ‘Record high unit construction increases settlement risk’. To read CoreLogic’s commentary, please click here.}

So how will this affect the Australian Property Market and its existing properties? Will there be a significant market correction and if so, should buyers stay off until this happens? Bryce and Ben will also be answering a question from Vlad:

John Symond on 3AW predicted a 10-20% fall in property prices if Labour’s policy on negative gearing were to be implemented. Given the uncertainty, is it prudent to wait until after the election to make decisions about investing in property and to see, should labour win, what their sledgehammer will do to the market?

PS: We’ll also be holding a Live Q&A Event on Wednesday, 29th of June at 8:30 pm. Check out our Facebook page for more information!

If you like this episode (Winter is coming and the air will be colder up high), 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/

065 | Q&A – How will technology impacts the property market, investing in strata properties and more

By The Property Couch May 26, 2016 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

Today’s episode starts with a recap on the AREC16 Conference (ps: Bryce refused to talk about AFL). Bryce and Ben also discussed about the possible impact of technology to the property market for example, what would happen if we don’t need to drive a car in the future anymore? Would car spots still be a considerations in asset selection?

They then moved on to answering a couple of the listeners’ questions below. Thanks again for submitting your questions!:

Asset selection question from James: Love the podcast! Just wondering if there’s a big difference between investing in a 2 bedroom house or a 3 bedroom house. Everyone is telling me ‘the more bedrooms the better’ however others have told me that for an investment it doesn’t matter. Thanks!

Next step question from Mat: My wife and I are on the move from Newcastle (Whitebridge) to Coffs Harbour on the NSW mid north coast. Our house in Whitebridge is our first home which we purchased in 2011 for 365k and is currectly valued at 490k. Ideally we would like to keep our house in Whitebridge as an investment property and look to buy in Coffs Harbour. The rental return will be $420 which comfortably covers the mortgage at interest only. I see the house as being a good investment grade property and ticks the boxes that you both talk about in the podcasts. What should we do?

Question on strata properties from Sarah: I’ve got a question about strata properties. We have two townhouses, one is in a smaller complex with 8 townhouses & the levies are reasonable, there is rarely any issues with maintenance etc. The other one (our first purchase!!) is in a complex with 30 townhouses/units, the units have lift access/underground parking & we’re paying about $985 a quarter in levies.We are constantly getting correspondence from the strata company with owners having maintenance issues, leaking toilets/tiles, graffiti removal, underground car park issues…. We’ve committed the property, it will give good growth & should be neutrally geared in the years to come (held for2yrs to date) so selling is out of the equation.Would love to hear your thoughts on strata, when is it a good idea, when is it a bad idea. Should I be religiously sending back votes for meetings etc? When I read the strata documents that require owners response, it’s all dutch to me, can you explain how to respond to things I can vote on & making sense of the minutes etc. Thanks guys, appreciate any advice you can give on strata.

Question on timing the market from Leighton: I’d love to hear Bryce and Ben’s thoughts on the property cycle and the part that it plays in investment decisions and how the cycle ties in with “timing the market”. It seems that different parts of the country operate in different phases of the cycle.

If you like this Q&A episode (How will technology impacts the property market, investing in strata properties and more), don’t forget to rate us at 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/

064 | Case study: mid 30s couple, combined income of $150k p.a, existing PPOR and two IPs

By The Property Couch May 19, 2016 in Case Study, Podcast, Q&A

It has been quite some time since our last case study so this time on The Property Couch, Bryce and Ben will be discussing one the case studies that we’ve received from our fellow listeners! Here’s what Tom wrote to us:

After listening to Episode 56 where you discussed various other case studies I thought I might write in to see if you were interested in discussing our situation. I’ll try and keep it short!

Basically, my partner Kirby (30yo) and I (32yo) are both teachers on a combined income of about $160k. 3 years ago we got the bug to do something with our money but weren’t exactly sure how. Our simple goal is to have choice whether to work or not. If we had no loans to service we imagine a passive income of $80-100k would be more than enough, and any more is a bonus!

We had a PPOR property valued at a tad over 300k with a mortgage of ~200k, limited other expenses and a disciplined approach to spending. Property sounded like a great avenue so we went about increasing our knowledge. Unfortunately our naivety led us to a property investment ‘education’ group where although we have learn a lot we have made what we think are two poor investment decisions. We overpaid for both to fatten the developer’s margins.

Our first was brought using the above equity in our PPOR and was a House and Land duplex in Dakabin, Qld for circa $500k. Although the yield is decent there were many costs that the property investment ‘education’ group failed to mention/understand that we have been left with, and there is little scarcity or owner occupier appeal to make growth a good prospect. We have always had tenants in both sides which has been great. We borrowed 90% on interest only terms.

About 18 months ago we signed another contract, this time on a 4 bed H & L in Doolandella, 18kms out of Brisbane for circa $400k. After a long land settlement this was completed yesterday and will be advertised for rent tomorrow. Looking at about a 4.9% yield. Again, this is on an interest only loan at 90%. Deposit and costs were paid from our savings – I know, huge mistake!

Right after we signed this contract we found your podcasts which have taught us that there are so many fundamental errors in our property selections, and if we had our time again would have purchased existing properties with scarcity and owner occupier appeal.

We have just had our first child and Kirby is now off work. We have a ~$45k buffer in our PPOR offset and somehow are still managing to save, even though Kirby is off work, although receiving maternity leave payments.

We use a credit card to pay for 95% of our spending, and repay at the end of every month to ensure no interest payments.

So, we are still very keen to use property as our investment vehicle and have learned so much in the last year but are now stuck as to our next step. We doubt we would have enough equity to purchase again now and the fact Kirby is off work will severely hamper our serviceability. She will return to work at the start of 2017.
Questions:

Do we sell both/one of our current properties? We’d like to keep if possible as I am a firm believer in buy and hold, although will they hamper us moving forward?
Where to from here?

Any information from you would be extremely appreciated. I’m sure there are a number of people who have used ‘property spruikers’ such as these to purchase less than ideal investments.

If you like this case study episode (Mid 30s couple, combined income of $150k p.a, existing PPOR and two IPs), don’t forget to rate us at 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/

63 | Q&A – What’s the next step to building a portfolio, size of the portfolio, IP or PPOR and diversifying wealth strategy

By The Property Couch May 12, 2016 in Podcast, Q&A

Subscribe On Itunes Subscribe On Android

It’s Q&A time again! This week on The Property Couch, Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. Thanks again for submitting your questions!

Next step to building a portfolio question from Derrick: I was listening to your “tips for FHO’s” episode where you advised a gentleman to think about getting a one bedder in a desirable suburb (like Bondi) as his first place. Coincidentally I pretty much did that 4.5 years ago…buying a 1 bedroom unit in Woollahra. So you could say that I am that guy four years later! The only difference is that my apartment wasn’t part of an investment strategy at the time, I just liked the apartment! I am at the stage now that I want to get into property investing but at the same time I’m conscious about finding my second place of residence for my wife and I in about three years…preferably living in a similar area. So I’m trying to tackle two thoughts at once: how do I invest in my long term future while figuring out how to afford my next home? What should someone like myself be thinking? Should I be looking to invest and build more equity for our second place? Should I sit on our current property and save, while looking to use my current place of residency as a future investment property? Or is there another route? Thanks for your advice and thanks again for the show!

Size of portfolio question from Jason: Started to listen to podcast recently and love it keep up the good work. I just wanted your guys opinion on the ability to build large portfolios now in this current lending environment. I have heard you guys mention that you only need 4 to 5 properties to have a passive income and live into retirement but what if you want to have larger portfolio say of 10 or 20 properties is this achievable for people on average incomes like previously? Or has the APRA changes stopped this from occurring in the future?

Question on leverage from James: I’m 27 and looking to make a good go at property investing. I have recently sold my first investment property and now have a lot of capital from the sale. My investment now is a new property being finished in 12 months . My question is after selling down the 1st investment property, am I better off paying for the new one in full (using the rental income to service another investment property afterwards), or should I purchase a few more properties while i have a large sum off money and spreading the cash around to gain more houses for a larger passive income later down the line. Bearing in mind my age and goals. Thanks guys! and keep up the great work.

IP or PPOR question from Karla: Hey guys. I love the podcast and the sign offs too Ben! My question is, if you are renting and have the ability to purchase a property. Is it better to buy an investment property or a principle place of residence (IP or PPOR) first? Which would set you up better for the next step? It feels like a bit of “chicken or the egg”. I’d love to know hour thoughts! Keep up the good work and I can’t wait for footy season to hear your commentary!

Case study question from Deanna: I am 22 yrs old and am convinced of the benefits of property as along term wealth building strategy, for now I am trying to develop as much understanding as I can. My questions are as follows:
- Do you recommend that the first property that someone buys is for PPOR or can it sometimes be an IP? For example this may be relevant for young people currently living in Sydney who are renting but would also looking to be a border-less investor. In what/ if any scenarios do you think this could be a smart plan?
- What is your opinion of young people utilising the first home buyers grant. I understand that in majority of discussion that you advocate for established buildings rather than new dwellings, however when I read a case study you wrote for Money magazine the 20 something year old strategy included using the first home buyers grant for their first property (PPR).
- This is a broad question and may potentially be outside you scope of practice but I was wondering what your opinion was in diversifying wealth building strategies. For example do you observe in your successful clients that they are involved in property investment only or do they often also include other investments such as a share portfolio to their strategy.

References:

Money magazine – Special Real Estate Edition – Buy here
ABC News article: Who uses negative gearing in Australia? – Read here
RP Data: Weekly rents have continued to fall over the past year – Read here
2GB Ross Greenwood chat with Roger Montgomery – Listen here
Qantas in-flight radio: Alan Kohler chat with Bryce Holdaway – Listen Here

If you like this Q&A episode (Exiting a contract, crowdfunding, what’s the impact of global events on Australia Property Market and more), don’t forget to rate us at 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/

Free resources: BMT Tax Depreciation Application Form

Instagram

Free Resources

Footer

MONEY SMARTS SYSTEM