Real Stories Archives - Page 18 of 20

080 | The Four ‘D’ words that equal a motivated seller!

By The Property Couch September 8, 2016 in Hot Market Tips, Podcast, Real Estate Agent

One of the negotiation tips mentioned in previous episodes is to understand the vendor’s motivation to sell. Once you understood that, you would have a better idea on what to negotiate on and increase your chances of securing that property. But as always, this is easier said than done because how would you know if the real estate agent is clouding the truth? Hence why you need to make sure you are asking the right questions, in the right way and is capable of assessing the agent’s reaction to your questions.

In some cases, some vendors are extra motivated to sell and you can take advantage of this to help you boost your chances. So in today’s episode, Bryce and Ben will be discussing the four ‘D’ words that would indicate a very motivated seller. They will also be sharing some of the questions you need to ask to spot these situations, answers from real estate agents that you should look out for and negotiation tricks that you can use if the vendor’s motivation fall into these 4 categories. Start listening to find out more.

If you like this podcast: “The Four ‘D’ words that equal a motivated seller!”, don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have 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

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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/

61 | Finding the right property education and renovation tips – Chat with Jane Slack-Smith

By The Property Couch April 28, 2016 in Podcast

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Listeners of The Property Couch would probably know our view on property renovation. If it’s a small project such as a fresh paint, we are all over it but if you are looking at renovating for profit, we always ask our listeners to proceed with caution because a renovation project can be quite daunting for the inexperience.

So this time, Bryce Holdaway and Ben Kingsley invite a close of friend of theirs and a fellow property expert especially when it comes to renovation, Jane Slack-Smith from Your Property Success to share some of her views and tips on property education and renovation! The three of them will be discussing about:

What are the different types of property education or seminar out there
How to ensure you are getting independent views from these seminars
What’s the right mindset when it comes to property renovation
Characteristics of a successful renovator
What considerations and risk that you need to look at prior to starting a renovation project
Property renovation tips for beginners

If you are interested in the 20 Essential Renovating for Profit Tips mentioned in this podcast, just fill in the form below and we’ll send it to you right away:

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52 | A property investor’s journey and confidence in the Australian residential property market – Chat with Phillip Tarrant

By The Property Couch February 25, 2016 in Podcast, Real life stories

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It’s our One Year Anniversary!! 🙂

Time does pass rather quickly and if you’ve found this podcast from Episode 30 or something, we strongly recommend you to rewind a few episodes and start with Episode One. It used to be 15 minutes, so it wouldn’t take long to catch up.

For today’s episode, we are bringing in Phillip Tarrant, Director and Managing Editor of Sterling Publishing and host for the Smart Property Investment Show Podcast. Apart from his daily job, Phillip is also on the board of Property Investment Professional of Australia (PIPA) with Ben. But Bryce and Ben is not talking about his role in the media industry today. Instead, they are focusing on his journey as a property investor, what triggered him to invest in property, how did he purchase his first investment property and how confident he is with the Australian residential property market. The three of them will also be discussing about the recent 60 Minutes investigation, which air on Channel 9 last Sunday (21/02/2016).

If you like this podcast: “A property investor’s journey and confidence in the Australian residential property market – Chat with Phillip Tarrant”, don’t forget to rate us at our iTunes channel (The Property Couch Podcast) and our Facebook page. If you have any questions or ideas, feel free to drop us your thoughts here: http://tpcaustralia.wpengine.com/topics/

Free resources: 20 Essential renovating for profit tips

It’s our One Year Anniversary!! 🙂

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