X

Episode 260 | Q&A: Picking The Right Investment Strategy and Beware: Proposed Changes to QLD Residential Tenancy Act

How do you know if you’re following the right investment strategy? Like… how long are you meant to wait until you buy the next property? And how much should you look at spending? OR what about all the variables in the mix — say, you or your partner is about to take maternity leave, or your overall aim is to leave a decent inheritance for the kids? And where do cashflow-positive properties fit in to all this? (And what even are they??)

We get it folks… there’s A LOT to consider when it comes to picking and following the right investment strategy!! Let alone adding on top of that trying to factor in future costs, changes to income, individual needs and capital gains on each property!

So, in this special Q&A on property investment strategies, we’re going to answer a handful of our listeners’ very own questions that dive into the common dilemmas and unique situations folks are facing!

Plus, given the recent news, we’re going to touch on the proposed changes to Queensland’s Residential Tenancy Act as well!! Learn more about the ‘Opening the Doors to Renting’ Reform here.

 

Oh, and not to mention we have a very, very special gift for you…

(which we hope will even the par on the “Black Friday” discounts happening all over the globe, which let’s be honest, aren’t exactly designed to make your money work HARDER for you!)

 

FREE BOOK!! (yes, it’s a physical copy!) – The Armchair Guide to Property Investing – How to retire on $2,000 a week

www.TheArmchairGuide.com.au

 

Yes, really. We’ve got a stack of books ready to go in the office — and until we run out, we’re GIVING THEM AWAY! Here’s our crazy deal…. We pay for the book. You pay for the shipping.

CLICK HERE to Get Your FREE COPY of The Armchair Guide to Property Investing (just pay shipping, and it’s all yours, provided we have enough left!)

 

The Black Friday Announcements:

 

 

Today’s Questions

Question from Brad

Hi guys, awesome podcast! Very informative. My wife and myself are in a bit of  a unique position, we currently have a house on the family farm we pay minimal rent for. We recently bought our first home, which we are living in due to the First Home Buyers scheme, and will turn into our investment in February; my question is how long until we buy our next property? How much should we look at spending? How do you set up the next investment, as in interest only or principle and interest?

 

Question from Stephen

Hi. Just in relation to The Property Couch Facebook Page I was just wondering what makes a cash flow property if you could explain. Thanks all. Totally addicted to the podcast.

 

Question from Scott

G’Day property gurus, LOVE your work. For the case that we are holding multiple investment grade properties, have a strong cash buffer, and they are cashflow positive but not enough to fully live off. Is a hold strategy and living off the capital growth a possible retirement strategy? Of course, it’s important that they are growing at a faster rate than our living expenses, but can this strategy work long term in retirement?

The big pro for me is that it maximises the value of the inheritance which we’ll leave the kids. What are the watch outs for this strategy? Keep up the great work, and Go Pies. Scott

 

Question from Sara

Hi Bryce and Ben, thank you for your fantastic informative podcast. I listen to it a few times a week and am learning so much. I am a 36 year old woman and have a question regarding buying an investment property now, or family home in 3-4 years. I have $115K saved for a deposit. I am currently on maternity leave with my first baby and will return to work 3 days per week from March 2020 earning around $66K pa total (not pro-rata). I anticipate that I’ll stay at 3-4 days per week ($66-88K pa total) until we hopefully fall pregnant with a second baby in 2021. All of this means I will have part-time and maternity leave income until around 2023 when I’ll likely return to full-time work (earning around $115K pa).

I have wanted to get into the property market for ages but wanted to wait until I met a partner so we could consolidate our savings and buy a family home (and this only happened in the last 2 years). As it turns out my partner works freelance and has not been able to make enough to save for a deposit, so the responsibility for that is with me at the moment. We obviously hope that his earning capacity will improve. At the moment he makes ends meet with around 30K pa.

We currently rent in the inner city but would like to buy a family home in a regional area with a commutable distance to the city, as it is more affordable (median house price $650K), and offers a better quality of life for our family. With my work commitments we don’t see ourselves moving out of the city until after we have baby number 2 (so in 2-3 years).

My question is this: given that we don’t plan to move out of the city for 2-3 years should we keep saving during that time and then buy our family home in the regional area, or should we consider buying a 2 bd unit in the area we currently live (at around $500K) initially to live in (to save on stamp duty) and then as an investment property? I feel anxious about waiting another 3 years to get into the market as prices will continue to increase (albeit at a slower pace in the regional area), and at 36 years of age I am already leaving it very late to start out.  Additionally, if we were to buy a unit in the city, would we be able to use that as equity in buying a family home in 3 years’ time? Or would that mean we couldn’t get another loan? I know that our borrowing power will not be strong with me only working part-time and my partner’s low income.

I know you can’t give specific financial advice, but I thought this must be a common dilemma with the restrictions of maternity leave income bumping up against the pressures and timing of getting a foot on the property ladder. Thanks in advance for any insights you can offer,  Sara

Ps. Are you able to let me know when/if you answer my question? I’d hate to miss it.

 

 

 

Episode 232 | Are All Tenants the Same?

Have you ever thought about WHO will be living in your investment property?

Chances are, you have! Because folks… an investment property is pretty useless without a tenant/s in it!! After all, you need these guys to help pay off your mortgage!

So. Are they all the same??

What TYPES of tenants are out there and what can you expect from each one?

Well, here’s the deal… we think there are FOUR tiers of tenants.

Let’s meet them, shall we?

Oh and FYI: Ben’s “Did You Know” is off the charts… we don’t think we’ve ever seen him this prepared in our podcast history — so make sure you stick around for that!!!

Resources mentioned in today’s show:

Here’s what you’re in for…

Loved the episode? You might also like:

Episode 033 | Q&A – Investing with Equity, First Home Buyers Tips, Buy-Reconstruct-Sell Strategy and Leasing to Relatives

It’s Q&A time! In this episode, Bryce Holdaway and Ben Kingsley will be addressing some topics on:

  • Finance related question from Kat : Would you please explain more about using equity? E.g. I heard from a broker that one needs to refinance the loan on the existing property (PPOR or investment) – does this mean the old property and the new one to be purchased are tied together? Some suggest using Line of Credit to get equity out. To assess the equity available, does one first need to pay for a valuation report on the existing property?
  • Leverage question from Naomi : I am considering selling my investment property in order to pay off the mortgage on my family home leaving me debt free and with the ability to then use all the money I currently pay on the family home mortgage for investment purposes with tax deductible debt. Is this a good strategy? Is there a better alternative you would recommend?
  • Episode 033 | Q&A - Investing with Equity, First Home Buyers Tips, Buy-Reconstruct-Sell Strategy and Leasing to RelativesInvesting strategy questions from Andy : Investing for demolition and reconstruction vs capital gain. Is it worth buying an older property close to the coast however a little further out from the city to sit on with the view to demolish with a larger land size or to invest in a more expensive smaller property which could be a little closer to the city.
  • Buying a Home question from Tom : I’d love to hear a podcast on your advice to first home buyers – whether that be best ways to save for the deposit, traps to avoid, or some type of plan for young home buyers – for example I’ve just start work as a property valuer in Melbourne for the last 5 months, and my girlfriend of a few years finishes studies later this year and we have the hopes of buying our first home together in 18 months or so.
  • Investing question from Andrew : Guys, just wondering what your thoughts are on buying an investment property that is potentially going to be tenanted by a relative? A relative has their lease ending in a few months, and i see this as an opportunity to buy an investment with a secured tenant (all through the proper rental channels i.e REIQ rental agreement). I think the opportunity definitely outweighs the risks. What’s your thoughts?

 

Other episodes mentioned in this podcast:

 

If you like this Q&A episode, 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/

Episode 031 (Part 2) | Checklist to Getting A Great Property Manager – Chat with Carolyn Wright

In this second part of Episode 31 with Carolyn Wright from Your Property Manager, we look at one of our listeners’ question on managing rental through the property manager, what to expect and how to deal with queries for maintenance.

As mentioned in Part 1, getting a good or bad property manager can make a big impact on your wealth position but what are the characteristics of a good property manager? Our hosts  and Carolyn list out some of the key roles that a property manager should be doing and what kind of expectations investor should have when finding one. The first tip on this part is setting up the right rental rates. Property managers are in the market all the time, meeting both investors and tenants and having access to tools that provide those data. A good property manager will know what rate to list your property at that would make sure you get a fair market value and minimise your vacancy rate. Listen to this podcast to find out the rest of the checklist.

 

Free resources mentioned in this podcast:

 

If you like this podcast: “Checklist to Getting A Great Property Manager – Chat with Carolyn Wright”, 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/

What is Rentvesting and Is it for You?

 

In Episode 22 of this podcast, Bryce and Ben answers some of our listeners’ questions. One of the question is on Rentvesting and if it is a good option for property investors.  There are a lot of investors out there who would like to continue renting in an area because they couldn’t afford the properties in that area. But at the same time, that shouldn’t stop their desire to invest their surplus money. How will it work?

 

 

Ben Kingsley - Quote of the Day - The property couch Ben Kingsley – CEO & Founder; Property Investment Analyst and Advisor and current Chair of PIPA

Ben Kingsley is the Founding Director of Empower Wealth and Chair of Property Investment Professionals of Australia (PIPA). A qualified Property Investment Advisor (QPIA), Ben holds a Real Estate Agency License (QLD), a Diploma of Finance and Mortgage Broking Management, a Diploma of Business and has become one of Australia’s leading experts in property investing for wealth creation.

Instagram

×

MONEY SMARTS SYSTEM

Plus We Will Also Notify You When We Release New Episodes

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

We Only Send You Awesome Stuff

×

SUGGEST A GUEST!

We Only Send You Awesome Stuff

×