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341 | How To Pivot Your Investment Strategy When Affordability Changes

Folks, it’s no secret that property prices have seen a significant uptick – so what does this mean for your investment strategy if you can no longer afford to buy investment grade locations that are close to the city?

See, if you’ve read our book The Armchair Guide To Property Investing, or heard any of our earlier episodes, you might have heard us quote particular price points that now seem, well, a bit ridiculous.

You might’ve thought, “A $650,000 property in inner city Melbourne… what? They’re now over a mill, guys…?”

Or, “Where on earth can I buy a property for $450,000 in this market!?!”

 Or, “You said to aim for inner city properties with owner-occupier appeal, but now you’re talking about regional markets… what’s the deal?”

We hear you. And we get it.

That’s why today we’re doing a deep dive on how to pivot your investment strategy when affordability changes!

Make no mistake – the fundamentals DON’T change… but you need to be both smart AND realistic about the locations that are available to you, whatever your price point may be.

This is a Q&A episode you don’t want to miss – we tick off A LOT of key property investment questions that we’re confident will allow you to find success no matter what your price point is! Plus, we’ve got some new frameworks on how to navigate land tax, learn when it’s time to SELL (yep) and best practices to manage your money without dedicating your life to managing a spreadsheet….

Tune in now – and let us know what you think!

 

P.S. Yes, Ben is actually in his CAR when we’re recording this episode… find out why in the first five minutes 🤣

 

Free Stuff Mentioned

 

The Questions

Question From Valarie on Tips For Money Management

I bought a course and really love I’m also through the Make Money Simple Again book. I have one question: How do you apply the Money SMARTS system to a couple? At the moment we have separate accounts, something like 12 accounts between the 2 of us. How do you change that to fit into the system? Do you go with one family account and 2 debit cards account and 2 credit cards account or is there another configuration that you recommend? Many thanks in advance for your feedback Tips and Have a Great weekend. Thank you!

 

Question from Kiran on Land Tax and Different Entities

Good day Bryce, Ben, Stiggy and the team. My name is Kiran, I’m from Melbourne. I was listening to your podcast a week or two ago and you spoke about an active, investor Bruce in this episode who had land tax issues because he was investing in the same state. All investments are in the same state. I understand the active investor issues but from what I understand, all these investments were possibly in his personal name. What if Bruce was able to invest in different entities for examples companies or trusts? Each entity would then be completely separate and hence reset the amount of land tax he had to pay. Can you unpack the issues as to whether this is a worthwhile strategy and other differences with finance? I understand that commercial finance is required for companies which results in less favourable LVRs. Are there any further issues that someone looking to invest using companies or trusts to reduce their land tax bill may encounter?

 

Question From Mathew Monty on How To Buy Assets Closer In On Combined $100k Income

Hi Guys, I love the Podcasts. I just got a couple of questions regarding investment grade/investment stock – more for people like me that don’t earn that much money. Can you buy with an income of $100,000? So I’ve got a property that’s got good equity and we went out and we bought another property for investment, probably just investment stock in Truganina. So 20-something kilometres from the city, I know it’s not investment grade like you just talked about. However, I wonder how people on say $100,000 a year in combined income could afford to get into those inner-city areas? I don’t know if that’s possible. Given our situation that we’ve bought a new investment stock property, where do we go from here?

 

Question from Dimitra on The 6-Part Framework That Reveals It’s Time To SELL!

Hi guys, Love your podcast. I listen regularly on the drive to and from work, and recently purchased your audio book which has been super informative. You always share a lot of knowledge when it comes to finding and purchasing an investment, but would love more information on what to do if you’ve bought a lemon! Most of the things you tell us to avoid applies to my investment property. The apartment was purchased off the plan in an area where supply exceeds demand and the property price hasn’t increased since it was purchased back in 2017. And to make matters worse, since Covid and the bad publicity new apartments have been getting, the property has gone down in value. There are tenants in the property currently and I have to contribute an extra $50 per week towards the mortgage (principle and interest)

The positive is that the property is in Sydney, 12km from the CBD and a 10 minute walk to public transport. This purchase obviously happened before I discovered your podcast, but what should I do?

Should I hold the property in the hope that it will eventually increase in value, or is there no other option but to sell and cop a loss?

Any advice you can give would be much appreciated. Many thanks.

 

Quiz: What is Your Financial Wellbeing Grade?

Did you know there are seven “grades” of financial wellbeing?

The 7 Grades are: Turmoil, Survival, Consciousness, Stability, Control, Peace and Contribution.

Take this short quiz to determine exactly which financial stage you are in – you might be surprised!

P.S You can also listen to Episode 275: 7 Grades of Financial Wellbeing – Which One Are You? for more details.

 

327 | Winning A HOT Property Market (Part 3) – The Step-By-Step Process!

The final part of our mini-series: “The Step-By-Step Process To Win In A HOT Property Market” has landed!

Just in case you missed it…

LAST TWO WEEKS ON THE PROPERTY COUCH..

  • Episode 326 was all about The SEARCH for the property and The DUE-DILIGENCE around the search and the finance (lending) for that property!
  • Episode 325 was about GETTING STARTED! Nailing the brief, how to get your FINANCE ready,

 

And this week is all about…..

MAKING AN IRRESISTABLE OFFER!

Doesn’t matter if it’s an offer prior to auction, post auction or even a ZOOM auction…

We’ll be sharing practical, real-life and tested tips and tactics on setting your offer limit, the tone of voice to use, replies to common agent feedback, body language and more!

And of course…. What happens after the offer gets accepted?! If you think that you’ve signed on the dotted line and that’s it, you couldn’t be more wrong.

It’s not over until the keys to the property are in your hands and you can officially walk in without being considered a “trespasser” ….

We’ll be unpacking the mistakes, the last minute paperwork, the forgotten things and the follow-ups that a diligent buyer needs to do after signing the contract because let’s face it…. You’ve done so well to secure a property, you DO NOT want to stuff up the final leg.

 

Free Stuff Mentioned…

  • (AUDIOBOOK) The Armchair Guide to Property Investing now available on Audible & other audiobook platforms! And you can also get it at a discount here.
  • Real Estate Agent Series – Listen here

 

Here’s What We Cover…

  • 9:42 – The FOUR overarching themes to be in a position of making an offer in this seller’s market
  • 10:31 – One thing that you DO NOT WANT TO COMPROMISE ON at all to get the property
  • 13:43 – In a HOT Market, you may need to make THIS decision before you even inspect the property. But are you in the right headspace to do that?
  • 15:47 – The due diligence that you can do on the property BEFORE the open day
  • 16:49 – How quick should you really go if the property is the one?
  • 18:34 – If 6 months comparables are considered “old data” in this market… how do you even set a price or work out your offer/stretch?
  • 19:05 – The three price levels that you need to know when buying a property
  • 22:10 – What questions can you ask a competing (but friendly) agent who lost that listing?
  • 23:50 – Two professionals in your A-Team that needs to be on standby before you go to an open
  • 25:00 – Critical, Important and Nice-To-Haves in a contract – Which ones are worth taking a risk for?
  • 32:13 – Offer Prior to Auction – How to get one and be ready for it?
  • 32:30 – Boardroom auction – Is it still common these days and what’s the mystery behind it?
  • 36:13 – The real boss during an auction and what role you want to play to make sure you are in their favour?
  • 37:34 – Zoom Auction – Getting the art of body language right! (Yes, even if it’s online!)
  • 40:54 – Ben’s real-life story of losing the auction but still winning the property!
  • 43:23 – Making an Informal vs Formal Offer in current market prices
  • 43:51 – Top 3 questions to ask a RE Agent during an inspection to show that you’re in the game
  • 44:50 – The NUMBER ONE question to ask yourself when it comes to setting a price..
  • 45:47 – Your script to the real estate agent >> “I’m not asking what they’re offering, of course you’re not going to disclose that to me. But ultimately what I am saying here are two things. One, if you ______”
  • 48:32 – The CONDITIONS that you should include in a seller’s market to give you an added advantage 😉
  • 50:15 – The Competitive Tension of NOT being Conservative vs Legitimate.
  • 50:50 – Having THIS productive conversation with your broker and how to explain the nature of a hot market to them
  • 52:26 – The exact questions you should ask your investment savvy broker and understanding the pros and cons of the different buying ranges
  • 54:53 – When is it alright for you to jump up the risk spectrum?
  • 56:55 – THIS is not an escape clause. Don’t dance with the devil thinking you can use it.
  • 58:09 – Tips on taking away the vendor’s pain
  • 1:00:57 – Settlement – how to make sure it does not fall over?
  • 1:00:57 – Bryce’s (or rather Adit’s) Apple Lifehack!
  • 1:08:23 – Ben’s What’s Making Property News on times when the Property Market went “crazy”

 

326 | How To Win In A HOT Property Market (Part 2) – The Step-By-Step Process!

Part 2 of “The Step-By-Step Process To Win In A HOT Property Market” is HERE…

… and today’s episode is all about two things:

  1. The SEARCH for the property…
  2. The DUE-DILLEGENCE around the search and the finance (lending) for that property!

Folks, as we mentioned last week in Part 1 of this 3-part mini-series… we are in a HOT property market – listings are TIGHT.

Properties are selling in the blink of an eye.

And pretty much every major and secondary market across the country is SMOKIN’…

… so if you’re a property buyer playing in “The Big Wave”, it’s vital you educate yourself so you stay in front of the curb (while NOT getting swept up in FOMO) – this way, you can ultimately enjoy the ride and, yep, the fruits of your smart efforts!

We’ll be unpacking quite a bit in this episode, and you’ll be getting plenty of tips on how to conduct your search to find an investment-grade property (incl. what WE personally and professionally do and look for!)… and let you in on “The Top 3 Deal Does” and “Top 3 Deal Breakers” in a HOT property market… as well as how to be due-diligent with your finances, ESPECIALLY in a market that is moving at a rapid pace.

Remember – stay informed, don’t do anything irrational right now… and ONLY IF you’re in a position to “push play”, move quickly but SMARTLY.

… What a ride we’re in!

 

P.S. – Part 1 was all about the backdrop of how we got to this HOT property market, how to get your PREP work done and figuring out your brief… this ep’s getting into the nitty gritty of the property and lending story!!

 

Free Stuff Mentioned

 

Here’s What We Cover…

  • The difference between On Market, Off Market and Advanced Listings!
  • The Investment Property Search Plan 🙂
  • How to conduct your asset selection
  • The Top 3 Deal Doers!
  • The Top 3 Deal Breakers!
  • What attributes do you need to look for in an investment property?
  • What “feeling” should the property evoke?
  • Why SHOULDN’T you be fearful of agents knowing your upper limit (in a hot market)?
  • Tips for dealing with real estate agents
  • How did we purchase a property when we were the 2nd highest price offer!?!
  • What research sites can you use – and what should you look for in each?
  • Questions to ask a Property Manager to help you with your search…
  • … Watch out for FOMO!
  • How to do your Due-Diligence with the property?
  • How to do your Due-Diligence with your finance?
  • What is happening in the lending space during a HOT property market?
  • How can you fast-track your home loan application?
  • Settlement mistakes in a HOT market
  • Red flags certain properties and when to walk away
  • The relationship between % LVR and the type of property to buy
  • How many properties are going to auction this weekend!?!

 

325 | The Step-By-Step Process To Win In A HOT Property Market – Part 1

There’s no doubt about it – the property market is HOT and it’s only getting HOTTER!

Mark our words, folks – we’re in a Seller’s Market right now – and we’re talking right across the country – which means if you’re serious about entering the property market, there are some CRITICAL things you need to know and do in order to make sure your execution is successful and, here’s the biggie…NOT something you’re going to regret further down the track.

This is what we call “The Big Wave” – so today is the very first episode of our new miniseries that will walk you through the ENTIRE step-by-step process to buy in a HOT property market.

This is the proven technique WE are currently using as we guide our clients through a hot market – so, we’ll be walking you through…

  • How to organise your Buying Brief
  • How to prepare yourself BEFORE entering the market (the team you need, the deposit you need, LVR requirements, the planning process, etc.)
  • How to search for an investment grade property (what to look for, where to look for it, tips for handling real estate agents)
  • How to do due diligence with your finances
  • How long it takes for banks to process your loan (especially in a hot market)
  • Red flags for certain properties and when to walk away
  • Negotiation and buying tips specifically for a hot market
  • How to work out the difference between quality assets vs FOMO
  • What to Do AFTER Your Purchase
  • Pretty much everything property investors need to know as they enter a property market that’s heavily swayed in favour of the seller!

 

Like we said, today is just Part 1 – so please start from the beginning, and tune into the upcoming episodes to make sure you’re in a position to WIN – because now is NOT the time to be doing anything silly!

 

Free Stuff Mentioned  

 

Here’s some of the gold we cover…

  • 00:15 — 10 MILLION DOWNLOADS!
  • 08:19 — Our proposal stories (LOL)
  • 10:37 — What has pumped up this property market?
  • 11:41 — What are we seeing NOW?
  • 12:37 — The economic flow-on effect from property (did you know this number?!)
  • 14:05 — A true story of how quickly things can change
  • 15:20 — WHY is the property market so hot?!
  • 16:58 — The first thing you need to do!
  • 17:33 — The Big Wave :0
  • 18:34 — The Buyers Decision Quadrant
  • 19:24 — Quick tips to assess the quality of an asset
  • 21:03 — The 80/20 Rule
  • 22:05 — The “S” word that changes everything!
  • 24:25 — What to do if you’re buying as an OWNER-OCCUPIER
  • 25:49 — What to do if you’re buying as an INVESTOR
  • 26:50 — Why most people fail…
  • 28:17 — How do you work out how much you should spend on a property?
  • 29:05 — Realistic historical capital growth to look for…
  • 32:00 — The biggest killer 🙁
  • 34:11 — The three things to focus on to identify what property YOU need to buy
  • 35:09 — Why are you incentivised to cut corners in a hot market?
  • 35:23 — What happened with one of the properties we bought last week?!
  • 36:54 — The property investor mindset
  • 37:37 — Why you should NOT “play it cool” right now!
  • 40:11 — The five-step process to build wealth
  • 41:25 — Three questions to ask yourself before you do ANTHING!
  • 40:54 — HOW TO CLARIFY
  • 40:33 — HOW TO EVALUATE
  • 44:22 — HOW TO PLAN
  • 45:50 — What happens when you buy a higher-priced asset?
  • 47:23 — Capital growth asset OR balanced asset OR yield asset?
  • 49:24 — HOW TO IMPLEMENT (WAY more coming!)
  • 49:45 — HOW TO MANAGE
  • 54:47 — Who do you need on your team?
  • 55:46 — What do you need to ask a Building & Pest Inspector in a HOT market?
  • 57:51 — If you’re buying “subject to”, what do you need to keep in mind?
  • 58:15 — What to do with a contract!

and…

  • 1:04:26 — What else have we got coming for you in this mini series?!
  • 1:05:05 — The latest property market stats (AKA proof it’s a hot market right now!!)

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