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440 | How Do They Do It? 5 Wealth Destroying Property Myths

We all have those family and friends with impressive portfolios and beautiful renovations that leave us wondering… 

“How the heck did they do it?!”  

Like…is the answer simply earning a higher income?? Or did they hit the golden number of properties to achieve their dream lifestyle? And ultimately, is it possible for you to achieve the same results?!?  

Well, you’ve arrived at the perfect episode to answer ALL the questions above!!  

In our third awesome Mythbusters episode, we’re shining a light on the 5 BIGGEST wealth-destroying property myths.

Tune in as we debunk and discuss…

🎙️ Myth #1: Does Equity = Borrowing Capacity?!
🎙️ Myth #2: You need 5+ properties to live your lifestyle by design 
🎙️
Myth #3: Rent-vesting as…a Magic Wand?!
🎙️
Myth #4: Higher Incomes = Good M_n_ _ M_ _a_e_ _nt
🎙️
Myth # 5 – Home upgrades: Do they just happen!?!  

If you can’t tell, we’re jumping in feet first to a massive episode!  

And if that wasn’t already a teaser enough, we’re also revealing…  

  • The 5 C’s that banks really assess you on,  
  • The crucial difference between Pure and Partial rent-vesting,  
  • How to overcome and identify when you’re being affected by the Diderot Effect, and much, MUCH more!  

Avoid these pitfalls and uncover how they did it by listening to this episode now!  

 

P.S. Missed the rest of our Myth Busting series? Listen to them here:
Episode 437 | The Biggest Danger people face when looking at property data
Episode 438 | REVEALED: Avoid these Property Buying Myths 

 

Tune in now or watch the episode below 😊 >>

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The incoming gold!!  
  • 1:16 – AFL chat and a dagger was dropped on Bryce on Anzac Day… 😉  
  • 3:44 – We’d love to learn how you heard about us! Take our 1min survey here >>  
  • 7:03 – PSA: We have a super exciting job opening!! Find out more here… 
  • 8:29 – Mindset Minute: Ever experienced the Diderot Effect?  
  • 11:07 – Brendan experienced this…😰 (and so did Ben!)  
  • 18:14 Myth #1: Equity = Borrowing Capacity  
  • 19:24 – The Backstory 
  • 20:15 – Folks, you can’t just lend on the ____ over the ___ term!  
  • 21:42 – The 5 Cs: What do Banks really look for during their assessment?!? (A. C_a_a_ _er)  
  • 23:09 – B. C_p_ _it_ 
  • 23:45 – C. C_p_ta_ & D. Co_ _a_or _ _  
  • 28:18 – E. C_ _d_t_ _ns 
  • 29:40 – F. Co_ _on _en_e!  
  • 33:09 – Myth #2: You need 5+ properties to live your lifestyle by design  
  • 35:06 – The $100K target is becoming feasible. Here’s why.  
  • 36:33 – You may only need…1 property?!? 
  • 38:39 – It all starts with a plan (This is how to start TODAY) 
  • 43:06 Myth #3: Rent-vesting as a Magic Wand 
  • 44:24 – Pure vs. Partial rent-vesting  
  • 48:07 – The alternate pathways (How our advisors navigate it!) 
  • 53:36 – This is the BIG question you need to ask.   
  • 54:11 Myth #4: Higher Incomes = Good M_n_ _ M_ _a_e_ _nt 
  • 55:29 – More income = More…   
  • 58:30 – THIS is the real builder of wealth!   
  • 59:56 – Some of the hurdles that higher income earners face  
  • 1:02:29 – A common conversation our advisors have…  
  • 1:05:00 Myth #5 – Thinking home upgrade is just going to happen! 
  • 1:05:47 – How to reality-check your dreams  
  • 1:08:44 – Folks, set expectations!  
  • 1:10:58 – It’s actually an act of love…   

And… 

  • 1:13:33 Lifehack: How to escape the Diderot Effect!   
  • 1:18:03 What’s Making Property News: Has Melbourne overtaken Sydney?!  
  • 1:20:11 – And the ABS’ analysis paints a different picture of the rental market…  

 

Get Moorr out of your money:
Log in or create your free account via the
Moorr web platform, or download the app on Apple and Android and transform the way you view and track your wealth. 

 

432 | Another Tax Grab…What 62.5%?!?!

It’s sad but true, we’re back with yet ANOTHER tax grab (It feels like just yesterday that we were waving goodbye to Queensland’s diabolical land tax…) and this time…

We’re talking about a tax that’s set to take 62.5% of your earnings!!! 🤯🏃

Folks, we’re covering everything you need to know about Windfall Gains Tax – what it is, where it came from (according to Ben 😉) and how much you can be expecting to pay. 

(Oh, did we mention you only have 30 DAYS to pay?!)  

Yep. Welcome back to our first Q&A session for 2023 where we’re tackling this shocking tax grab, along with a line-up of fantastic questions like… 

👉 Should I renovate and rent now or rent then renovate later?!

👉 Why buy Established over new housing?! (How much do you really benefit?)

👉 And if diversification is the key to growth, should one expand their investments beyond property?!  

 Another jam-packed episode that sees Ben more fired up than ever (and not just because he gets called Benjy 😉). Tune in now!  

 

P.S. For any of those folks who have been using our Moorr platform and gained value from it, we would appreciate it from the bottom of our hearts if you could leave us a 5-star review on Apple or Google Play! This helps us to reach and help more people take control of their money on their path to financial freedom.  

 

Questions We Answer

Question from Kristy on Rent and Renovate – Now or Later?  

Hello to The Property Couch and all listeners. 

My question relates to an investment property I have in Geelong. It’s a 1980’s property in original condition on a very large block and it’s planned to be a long term hold. 

I’m trying to examine two strategies. The first being just simply rent out and renovate it when it’s time to sell maybe in 20 years versus renovate now and rent it out.Where would we be in 20 years?  

With the first strategy, the property would be very rundown by then. With the second strategy the property would likely need another renovation. Of course, I’m trying to be smart with the numbers to see where we might end up. Which strategy would produce more capital growth? Any thoughts or suggestions with how I might evaluate this? Many thanks and can’t wait to hear back from you. 

 

Question from Wayne on New Housing vs Established 

G’day boys. 

Wayne here from Brisbane. I wanna ask a question here. I’m a little worried that the quality of the information or my voice might be tainted let me start off we go the pies. 

So I’ve been listening to your podcast for quite some time now. I’ve circled to most of the episodes. One of the questions I have is around the established properties versus obviously the house and land packages and so on. 

I get that there’s a whole issue with the supply and demand in newer states and all that sort of stuff. I guess where the confusion for me comes is generally the properties will experience growth because the phases and stages of new developments obviously the land gets more expensive I don’t think it ever gets cheaper so that would kind of dictate that you’re actually going to get some capital growth even in the early stages and if you buy it for long term, 20 or 30 years then obviously at some point these newer states are going to become the established estates as they open up more land etc. 

So obviously the savings that happen in terms of stamp duty being paid on new purchases if you’re only paying it on the land is significant savings there. The non-cash deductions on new properties obviously there’s significant rebates and sort of stuff there from a tax perspective. 

So just wondering why it’s kind of not the accepted way to go?  

I’m not disputing what you guys teach, obviously, you’ve been doing this a couple lot longer than I have but I just I just wonder if you can explain am I missing something? Or you know my reading it right and and just you know it’s one of the options that are available to us so anyway thanks for the info.

 

Question from Ned on Windfall Gains Tax 

G’day Bryce, G’day Ben.

Firstly, thanks so much for all the work you do with the property couch podcast as well as your book. I’ve really really enjoyed my time reading and listening so thanks for all the hard work that you do. It’s really valuable for all your community, no doubt.

My name is Ned, I’m 22 and I’m from Adelaide and I have a question about windfall gains tax particularly how that looks in Victorian Market. I think it could be of interest of payable who either hold currently assets in the rural sector or those looking to potentially invest in that market too so if you could explain what it is exactly, first of all and how it looks going in to the next few years.

I think a lot of people would be interested so thanks guys.I will be looking forward for your response.

 

Question from Cam on Property & Shares – Diversification 

Hi Bryce and Ben.

My name is Cam. Now I have a question for you. If diversification is really the key your growth then the key to your assets, then would you recommend considering other asset clauses such as shares or ETFs?

The reason being is obviously we all love diversification and we do not want to throw our eggs in to one basket. Obviously the great thing about property is that there is a lot of leverage that you can place in to one asset. You could control half a million dollar property in less than 20% even in some cases 5% down.

But if diversification is the key and you have the sizeable amount that you wanted to truly be diversified, with franking credits and dividends being paid, is shares and ETFs something that all people should consider? Or are shares and ETFs something that people should  consider in combination of couple of investment properties?

 

Free Stuff Mentioned… 

  • Happy 8th Birthday on The Property Couch! To celebrate we’re giving our awesome community 1-week FREE access to our Suburb Report for (Usually costs $39).
    Click here and enter the Coupon Code: TPCBIRTHDAY. Limit 5 per person.
    Note: To ensure you are not charged, please purchase a single Suburb Report x 5 times. If you add 5 Suburb Reports into one cart purchase, you will only receive a $39.00 discount. Hence purchase one report at a time please 🙂  This offer expires 9th March 2023.  
  • Learn how to make your WealthSPEED go faster! Check out Ben’s newest videos:  
  • Read the article from Ben’s “What’s Making Property News?” here >> 
  • Send us your questions!  (and if it appears on the podcast, we’ll send you a Start & Build course for FREE!) 
  • For our Moorr users, if you’ve gained value from our money management platform, we’d seriously appreciate it if you left us a 5-star review on Apple or Google Play! Help us to reach thousands of other hard-working Aussies on their property investing journey. 😊  
  • Episodes referenced:  Episode 418 | The Hidden Forces Driving Property Values 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – Welcome back & send us your Qs!  
  • 4:32 – Free Resources: Make Your WealthSPEED Go Faster, Free Suburb Report & Moorr!  
  • 12:29 – Mindset Minute: If you feel you’re in control, you’re more likely to… 
  • 16:31 – Q1) Renovate now or later?  
  • 17:30 – What Kristy should be considering…  
  • 19:13 – Ben & Bryce’s rule of thumb for renovations! 
  • 21:25 – Our thought process behind this question (+ potential benefits)   
  • 25:54 – Q2) Buying New Housing vs Established 
  • 28:20 – Why land-to-asset ratio matters! 
  • 31:19 – It boils down to THIS thinking… 
  • 34:10 – Folks, it’s about that 1 or 2%!  
  • 38:00 – Spruikers will show you this 🤨 (& where risk lives)  
  • 41:20 – Q3) Windfall Gains Tax  
  • 42:13 – Everything you need to know about Windfall Gains Tax (An extra 62.5% tax?!?!?)  
  • 45:15 – …And here’s when the thresholds kick in! (It’s not great folks)  
  • 46:50 – Let’s dive into an example… 
  • 48:25 – Who ultimately pays?  
  • 50:55 – This has been our message since Day 1!  
  • 53:08 – The hidden impacts of this tax + how to circumnavigate it  
  • 55:14 – Q4) Property & Shares – Diversification 
  • 56:56 – The best investors say this…  
  • 59:31 – Weighing up the benefits vs costs with diversification  
  • 1:02:20 – Folks, we will NEVER say this…(& the checklist we do recommend!)  
  • 1:03:26 – How to diversify your portfolio beyond property!  

And… 

 

Get Moorr out of your money:
Log in or create your free account via the
Moorr web platform, or download the app on Apple and Android and transform the way you view and track your wealth. 

 

416 | How Can We Solve Australia’s Building Crisis? – Chat with Paul Baker

Property is a game of finance just as much as it is a game of bricks and mortar. But what happens when this bricks and mortar – and the cost to put it all together – starts to cost too much?!  

 Today we’re addressing the complex and fast-growing issue of Australia’s building crisis. 🤯 

From rising labour costs to widespread material shortages, we’ll be exploring why the industry has ended up in its current state, when we can expect things to “normalise”, and answering the BIG question… 

Should you delay building?! And if you’re already building….what should you do to ensure the best results?!  

 Plus, we’ve got a super-awesome returning guest to help us out… 

Please welcome back Paul Baker, Director of Inside Out Property Inspections, qualified Carpenter and Registered Builder Practitioner with the Victorian Building Authority! A man of many trades, Paul also holds a Pest Control License with many years of experience inspecting residential homes…. 

 Basically, he’s THE man for turning the building industry inside out and giving you an expert guide to building and renovating today. Give it a listen now!    

 

 

 

P.S. Fun Fact! Last time Paul was on the couch, it was aalll the way back in Episode 45 😮 and it was also and our first episode of 2016!! 

 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The Gold Today 
  • 1:50 – Put this in your diaries: PIPA’s 2022 Annual General Meeting!  
  • 3:34 – Our TPC Re-Edition of this ad… 
  • 5:30  Meet Paul Baker!  
  • 7:58 – What are we seeing in the Building Industry today?  
  • 10:02 – Why builders are taking on more of the costs…. 
  • 12:32 – Fixed Price vs. Cost Plus Contracts: What’s the ratio in the market today?  
  • 16:20 Are we overcoming COVID’s supply shortage?!?  
  • 18:48 – Upcoming Trends: Material substitutes and modular builds  
  • 20:48 – For folks halfway through building, how can they increase their chances of a successful build completion?  
  • 23:37 What Building Insurance should you get and who does what??  
  • 26:26 – The Grey Area: Handing over projects between builders  
  • 28:03 Is NOW a good time to be building or renovating?!  
  • 31:48 – A Builders POV: What it’s like having multiple projects on-the-go… 
  • 33:50 – How can we solve Australia’s Building Crisis?  
  • 34:09 “Good staff is your business…”  
  • 36:11 How do different-sized businesses “compete”?  
  • 40:39  The Material Shortage Story: How are builders overcoming it??   
  • 43:05 What was it like having Ben as a client? 😉  
  • 44:10 What trends has Paul seen over the past 12 months?  
  • 47:24 – This is actually the best time for…. 
  • 51:04 – What should you be asking to verify a Building Inspector?  
  • 53:20 – Ben’s BIG Tip for Beginners!  

And… 

 

394 | Do you NEED to choose between Lifestyle & Wealth?! – Q&A

It’s been a while since we’ve said this (which makes it even more exciting!!)…

Ben reckons he’s found his new FAVOURITE QUESTION!!!!  

That’s because this question is something EVERYONE can relate to: Do I need to choose between building wealth or living the lifestyle you want?!  

Folks, this is the type of thing that we deal with on an everyday basis!

We’re using our years of battle-hardened experience and razor-sharp knowledge to outline what this question essentially boils down to, revealing how thousands of our clients have overcome this dilemma, and recommending just one thing that can clear all the rocks and rubble on anyone’s investing pathway, making the journey more akin to a walk in the park.  

Plus we’re covering loads more territory including…

  • How does our $2k weekly passive income goal tie in with Super?!  
  • And we’re talking Equity – should it be used to refinance or kept for the rainy days?! Is there a catch all solution to this?! And given today’s rising interest rate market, is now a good time to be making this move?
  • We also reveal some of our biggest Do’s and Don’ts when renovating and share our top resources to help you get the best bang for your buck.  

So if you’re ready for lots of evergreen wisdom, tune in now folks! 🛠️️👷  

 

Questions we Answer

Bernie Blyth on How to hold properties with higher cashflow drain 

Hello Bryce & Ben. 

This is Benny from Bayside in Melbourne. Firstly, a quick thanks for the value-added content you bring.

My question today is about how to adjust one’s portfolio in response to maintaining a healthy cashflow. My wife and I live in Metro in Melbourne and have 3 kids between 10 and 16. We’re happy in our own home and have 2 investment properties. Now first, the 2-bedroom unit, we bought in 2006 has double in value and is now positively geared to a degree. 

In 2014 we bought a tiny but old 1950s brick house in one of Melbourne’s baysides suburbs, which is a land bank. On the positive side, it’s experienced capital growth in the interim and is situated on a block of land that has redevelopment potential such as a subdivision.  

On the challenging side though, it’s still negatively geared and being an older property, it doesn’t rent for anywhere near as much as the recently developed properties around it and even though we both work, we have the cost of 2 kids in private schools simultaneously for the next six years combined with the prospect of rising interest rates, we are considering our next moves in terms of balancing property growth, cash flow and lifestyle. 

In general, what options would you recommend for consideration?  

Jake on – Pulling out equity and purchasing another 

Good day Guys, Jake here. 

Chasing an answer for this question that’s been sitting on my mind for a little bit. So my partner and I have recently refinanced a house in the Southeast Suburbs and fortunately we’ve found that there’s a bit of equity in there which is good.   

Now, what are your thoughts on pulling out essentially every bit of equity in the property to then purchase another one given that interest rates are going up and then might be a little bit of a plateau or even a slight decline in the property market. I’d love to hear your answer. 

It’s probably pretty straight forward but yeah, I though it would be a good one to myself and probably a lot of other people who’ve purchased in that pre-pandemic period so I’ll wait for the answer and appreciate the feedback and also go the tikes and hopefully onwards and upwards you gain for this season. 

Cheers guys!
Bye 

Adam Lett on Planning include Super? 

Morning Ben, Bryce and team. 

My name is Adam and I’m a long time listener of your show. My question relates to the plane of 3 to 4 quality investment properties to derive an income of $2000 a week in retirement. I’m working towards this goal. 

My question more specifically is how is this plan ties in or (dove tails in?) with an individual superannuation balance? 

By this I mean, if I or an individual had a healthy super balance of a million dollars plus is the $2000 a week on top of the super? Really like to hear your thoughts on this, keep up the good work. 

 

Laura Turner on Resources to help with renovating 

Hello, I’m Laura, I’m from Melbourne. 

My partner and I own our own home and we’ve just purchased our first investment property which we have nearly finished renovating. 

We purchased an old house, 3 bed, 1 bath, and we’ve turned it into 3 bed, 2 bath, with a walk-in room and we’ve updated everything to be within this century. I’m a conveyancer. My partner’s a carpenter and our plan moving forward is to keep purchasing property to renovate as this is something we both really enjoy, plus we see it as a quick way to grow our equity. 

What I don’t really understand is how to work out all of the figures. 

This current house that we have renovated ended costing a lot more than we anticipated. I haven’t had it valued yet as we are not finished but I am crossing all of my fingers that we haven’t over capitalised and that we will walk right with some kind of profit and then nothing is certain however,I am wondering if there’s someway you can recommend where I can go to learn how to find the right houses to renovate, how to calculate cost and what the end valuation is likely going to be. 

Any courses, tools or calculators you can recommend we use before we can go ahead and purchase our next property would be super helpful. Thank you! 

 

Free Stuff Mentioned… 

 

Our Renovation Resources recommendations! 

 

Here’s some of the gold we cover… 

  • 1:15 – Ask us a question on our Speak Pipe for a chance to win our Start & Build Course!
  • 1:50 – So…how’s Labour going?  
  • 3:22 – Folks, the REALER you are the less….?  
  • 4:44 – Q1) How to hold properties with higher cashflow drain 
  • 6:35 – It’s really a question around C____  
  • 8:11 – THIS is what most of our clients do!  
  • 10:25 – The 1 thing that everyone needs in situations like these is… 
  • 11:39 – Getting wealthy and STAYING wealthy are 2 very different things folks!  
  • 14:46 – Couples that come to us often have THIS problem  
  • 18:12 – The Compounding Effect – why you should hold!  
  • 19:31 – Q2) Pulling out equity and purchasing another 
  • 20:49 – Ben’s Warning!  
  • 23:13 – Make sure you have these foundations down!  
  • 24:38 – If you release your equity now, you’ll get less… 
  • 25:00 – For all our listeners: NOW is a good time to do these things 
  • 26:20 –The 3 best equity release strategies!  
  • 28:35 – The 3 steps to go from here (If you need one, why not check us out? 😊) 
  • 32:22 – A shoutout for our clients!  
  • 33:07 – Q3) Planning include Super? 
  • 36:50 – Check out these examples too! 
  • 37:14 – Q4) Resources to help with renovating 
  • 38:18 – Why shows like “The Block” don’t WORK!  
  • 40:10 – The minimal rule of thumb for renovating 
  • 41:07 – THIS is where you’ll get the most bang for buck…  
  • 42:46 – How much should you spend on your specs?  
  • 43:17 – For repeat renovators, be careful about this exemption!  
  • 44:03 – Bryce’s top 3 considerations  
  • 45:45 – Why Renovating to hold is a better strategy…. 
  • 46:54 – How to test the asset’s location!  
  • 47:54 – Reno resources we recommend!  

And… 

  • 49:40 – Find your phone…from your watch?! (For you Apple Users)  
  • 51:03 – There’s a developing Building Supply challenge… 

 

Free Report: Tax Implications of Building a Duplex

Folks, we are a biased group of people.

There you go, we said it.

What do we mean by that?

Well, if you have been listening to the past 300+ episodes, you would know that we lean towards passive investment more than active investment. Hence why we say we are bias.

But that does not mean we do not share helpful and educational tips on active investments! In fact, because we know we are no qualified experts in active investments or tax for that matter, we always get the best in the industry to help unpack the nitty-gritty.

And this time it’s no different!

In Episode 386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster, we asked Julia to enlighten us on what are the tax considerations when it comes to Building a Duplex. As usual, being the detailed-oriented professional that she is, Julia has also helped us create this downloadable to help our community understand this topic a little bit more.

So what are you waiting for?

Let’s get started! Simply fill in the form below and we’ll email the PDF to your inbox 😊


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

 

p.s. To help you understand it a little bit more, make sure to tune in to Episode 386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster – Chat with Julia Hartman. Fast forward to the 36 minute mark and you’ll get to play along at home. 

 

 

 

 

 

 

 

 

 

 

 

 

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