If you listened to last week’s episode, you’ll know already that there’s been significant changes happening on the grounds in the real estate industry… particularly here in Victoria with Stage 4 and Stage 3 Restrictions now seriously impacting what we CAN and CAN’T do when it comes to property transactions and inspections across the state…

And since then, we’ve heard from the Commonwealth Bank CEO Matt Comyn on the current health of one of the Big Four and the damage faced to our banking system as they act as “shock absorbers” during the COVID-19 crisis…

.. so the question now is… Is It Time To Sell Everything And Run? And for us living in VIC, Should we flog everything and move to Queensland?!

In today’s eye-opening Q & A, we’re unpacking ALL this, plus – as promised – we have a Brand New Update from Leah Calnan, President of the Real Estate Institute of Victoria (REIV) with further insights into what buyers, sellers, renters, real estate agents & property managers are legally allowed to do in COVID-19 Victoria.

Leah will also be covering what services can still go ahead with up and coming settlements and end of leases… and smart ways to safeguard purchases and sales over the next five weeks.

So. What are we in for?

 

Free Stuff

• Interview with Commonwealth Bank CEO Matt Comyn – Money News with Brooke Corte: CBA to pay a dividend despite 3% fall in profit
• REIV – COVID-19 Updates
• REIV Facebook Group – Managing Real Estate During The COVID-19 Pandemic
• CBA: Household income shock arrives when welfare stops
• Trading Economics – Australia Household Saving Ratio
• Take the PIPA Survey Here
• Episode 298 | Property In A State of Disaster – Chat with Leah Calnan, President of REIV and Nerida Conisbee, Chief Economist at REA Group
• Fast Track Your Research: Select Residential Property
• New Featuring Coming NEXT WEEK!! Sign up to TPC’s MyWealth Portal

 

The Questions

Question on Finance from Matt Feeley

If I buy an investment property with equity release and create two loan splits (let’s say 100k equity secured against PPR and 400k home loan). If I sell the PPR in the future to upgrade the family home, what happens to the 100k loan that is secured to the PPR? What are the options? Thanks a lot guys!!

 

Question on Selling Right Now from Cameron Hall

Not really a question, but thought I’d share our experience selling our home recently. Went on market two days after Melbourne went into stage 3, but despite individual inspections and the associated hassle, there was huge interest (25+ groups), and it sold in 5 days, for what we wanted, and a street record     . In a pandemic. No shortage of demand (at least in our area) from what we’ve seen. Hope this helps anyone worried about selling

 

Question from Maximus Decimus Meridias

This is a buy, rent and sell question and although specifically about the Perth market, I think it is valid for all of Australia. The media reported last night that the Perth median sell price has slipped below Adelaide and is 2nd from the bottom with Darwin sitting below Perth. However, the rental vacancy rate is

$200 less than last month and about half of what it was this time last year! I believe I heard you say in a podcast a few weeks ago that potential sellers are holding onto their properties because they know prices are real low. But has distressed selling pushed the median price down? Or are the media looking at stats at a certain point in time which reflects a bad run of  lower cost properties being sold in distress or otherwise? All these stats don’t match up with what I’m hearing about rental vacancy rates in other parts of Australia either.

And finally, we are looking at rentvesting, yet is it better to look at buying in Perth right now, rather than rentvesting or does that depend on the suburb?

 

Question from Hugh Gates

Hi guys, currently building a granny flat on the back of my PPOR at the moment which will be leased. My question is will my serviceability for a future  investment loan be increased if I lease the main residence also? The flip side is that the repayments on the house are lower than the equivalent I would pay in rent ie. Repayments $330 a week, rental $450ish. However the rental income I would generate on the house would be equivalent to that of the rent I would be paying. (Balanced out I guess)

Love the show boys and Stiggy, have listened to the lot and have read one of  your books keen to read the next! Thank you for your time and commitment to bettering others futures be it financial or otherwise!

Edit: sorry NSW based not Vic!

 

Question from Tee Dee

With stimulus being used to prop everything up, is it fair to say that we can expect to see an initial deflation in the market (10-20%), followed by a severe inflationary period as the mass amount of new money finds its way to the bottom of the pyramid when everything opens back up via rents and prices? If we keep our current monetary system the only way to repay this debt is through mass inflation. That tells me to hold my assets,  switch to interest only (despite low interest rates), and pay off my debt using tomorrow’s, devalued dollar. Is this a naive way of thinking? Thanks guys

 

Question from Jamie Attard

I’m hearing a lot of hype of a tree change from our major cities. Is there data out there to back this up and what regional areas are benefiting from this if any?

 

Question from Heath Ian Sullivan

Thoughts on Queensland being bombarded with melbournites trying to  escape from the city?

 

Question from Sonja Mallia

What to do if we have over 200k in offset, and the banks can now use our money if in financial ruins and not pay it back?

 

One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

 

 

“Property in a state of disaster.” Yep. You heard it here first, folks…

And there’s no doubt we’re literally making property news with this timely “double header” episode featuring two of the brightest minds in Australian real estate… (and no, this breaking news is not “hot off the press” either… we actually interviewed one of today’s guests BEFORE the press even got to them!! 😲)

Here’s the deal…

With Stage 4 restrictions now here in Metropolitan Melbourne and Stage 3 restrictions all across Victoria… the property market HAS been impacted as a result.

So, not only are we getting the update from the National Representative of Victoria, Leah Calnan, President of Real Estate Institute of Victoria about what we CAN and CAN’T do when it comes to property here in VIC, you’re also going to learn how (and if it’s even possible!) to transact property with these harsh restrictions now in place… and what the next six weeks is potentially going to look like for buyers, sellers, and renters.

PLUS, for our folks NOT located in or looking to buy in Victoria right now… our longstanding friend and indeed one of Australia’s best property and economic experts Nerida Conisbee, Chief Economist at REA Group, also joins us for a deep dive on what’s currently happening in the individual segments of the Australian property market including…

• Off The Plan
• House & Land
• Fringe Urban
• Middle Ring
• Inner Urban
• CBD
• Apartments
• Short term let stock

It’s a BIG ep… but we promise there are plenty of new updates and quality gold in here that we simply couldn’t NOT share with you! (Let’s just say there’s A LOT happening!!!)

 

Free Stuff

• REIV – COVID-19 Updates
• REIV Facebook Group – Managing Real Estate During The COVID-19 Pandemic
• Property Market Update: Canberra’s Future Looks Bright
• Nerida’s Article: New data shows how perceptions of property shifted over COVID-19
• Revenge Spending: Can It Help Save Retail Property?
• (Free Webinar) Property Buying Insights with Victoria Morgan – Log into your PICA account here
• Ben’s RBA Announcement: RBA August 2020 – Victoria’s Lockdown Slows The Speed Of Recovery & The Air Is Colder Up High
• Episode 281 | Why The Easter Break Almost Ended in Disaster for Property Owners… and How it Was Avoided – Chat with Leah Calnan, President of REIV
• PIPA Sentiment Survey 2020 – Share your voice here

 

Here’s A Glimpse Into What We Cover…

• Pandemic Brings New Rules For The Victorian Property Market… And They’re Not Great
• How can you transact real estate in Victoria?
• What are the unintended consequences of these harsh restrictions?
• What does Real Estate Institute of Victoria (REIV) think about all this?!
• How many known cases of COVID-19 have come from the real estate industry?
• Can you still get a new tenant in with these new laws?
• What about cleaning? Building and Pest Inspections? Pre and Post Settlement?
• How is Nerida navigating the outlook of the property market when things are uncertain and constantly changing?
• The September Cliff versus The September Slope
• Where are we seeing distressed markets?
• How many distressed sales are we seeing?
• What’s likely to occur if the pandemic continues into 2021?
• What is the Pilot Program and why has it now been derailed?
• Are investors buying right now?
• What’s happening to premium property?
• What are we seeing in the CBD and how will this continue to play out?
• What on earth is “Revenge Spending” and how will this play a role in getting us through COVID-19?
• Are predictions of 20 – 30% drops in the property market still relevant?
• Around The Grounds in The Australian Property Market

 

One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your MoneySMARTS platform here and update the numbers.

Want to learn more about MoneySMARTS? Claim your free copy of our best-selling book Make Money Simple Again which explains it all in detail!