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Episode 272 | Q & A: The Unspoken Truth About Growth Corridors & Picking The Right Property Investment Strategy

How many times have you heard something along these lines…?

“This suburb’s a growth corridor…”

“There’s heaps of development happening here… it’s the next growth corridor.”

“With all the new public transport networks, job opportunities and shops coming in, this place is absolutely a growth corridor… full of investment potential.”

With all this buzzword talk, it’s would appear that all us property investors need to do is hunt down the next “growth corridor”, invest in it before it really kicks off, and then sit pretty for the rest of our lives …

BUT. Folks, there is a massive problem with this! An unspoken truth about growth corridors that trips up a lot of investors out there. Sure, some “growth corridors” might indeed grow in value, but there is a huge misconception out there that we want to clear up today.

So, in our first Q&A of 2020, we’re diving deep on this unspoken truth and we’re also going to answer your questions about how to pick the right investment strategy… ‘cos guess what? While a whole lot of you folks know the fundamentals of property investing, you don’t necessarily know how to apply these to your own situation and goals!

 

Here’s a 30,000-foot view of what we’ll cover … 🚀

 

Resources Mentioned

 

The Questions

03:26 – Question from Jack on Bris vs Melb and differing opinions:

Hi there guys, first up I just want to stay that I’ve just tuned into your podcast and I’m absolutely loving it! I’m going to be buying a couple of your books too they seem to have a lot of great reviews and, yeah, I’m really excited to read them.

Fellas, I’m looking at starting my property investment journey in December 2020. Now, I’m following a couple of investors – one guy’s currently investing up in Brisbane. And this other guy I follow as well stays purely local, mainly Melbourne. He’s explained to me about the growth corridors – how they’re not really growth corridors – Packenham, Windenvale, Tarneit. I’ve gone and had a look and they don’t average as much as I thought they would. Nice places, but yeah. I can’t afford to invest in Melbourne itself and the different to the two is – the one up on Brisbane is getting people starting up around the $500 mark. And the other guy who invests only in Victoria says start out somewhere like Bendigo or Ballarat. He doesn’t think Geelong’s got good growth. Yeah, I’m hesitant to go to Bendigo and Ballarat as they are inland, but I’m hesitant that my judgement’s being clouded. I’ve always grown up in coastal places – always lived near the coast and love the coast. If you guys could give me your opinion that would be fantastic

 

13:18 – Question from Nick on Investing as an Expat:

Hi Bryce and Ben, my name is Nick. I’m calling all the way from Switzerland, although originally from the northern beaches in Sydney. My wife and I are both from the northern beaches, but we have been working here in Europe for the past 3 years and we are looking to buy our first property back in Australia. We’re keeping an open mind and looking all over the country – so not necessarily in Sydney.

We have a general question about what type of strategy we should be looking for being non-residents for tax purposes but Australian nationals, taking into account we can’t take advantage of first home owners grants, or negative gearing as we have no income back in Australia. Originally, we were considering purchasing an apartment with potentially 5-6% rental yield with the idea of having a high yielding property so one that can be potentially positively geared. What are your thoughts on this?

 

20:03 – Question from Nikii on upgrading PPOR now or later based on economic forecast:

Hi it’s currently June 27 2019, currently my husband and I purchased a 3 bed 2.5 bathroom 2 garage, 243sq townhouse, freehold in prime real estate in Hawthorne, Brisbane. We have been provided by market experts that we could get $830 – $850K  from the sale of our property. We’re currently wanting to upgrade to live in a better area. Would we be best with the economic forecast over the next couple of years to keep that property as an IP before upgrading to a property just in the very low millions.

 

26:03 – Question from Craig on selling a property at a loss or wait to recoup loses:

Good afternoon The Property Couch, my name’s Craig and I have a question. My partner and I currently own 3 investment properties between us. 2 of these properties are performing quite well, in terms of growth and low upkeep. The third investment property in Darwin was originally bought as a PPOR and is not performing well as an IP. The market is at the 32% downturn and is unlikely to recover any time soon. My question is… Should we continue selling the Darwin property at a loss and still walk away with about $30,000 to reinvest into a new or existing investment OR should we hang onto this investment long term with the intent of recuperating our losses, even though this property costs us about $8K a year? Thank you for your time.

 

31:40 – Question from Scott on what to do with money in the bank:

Hi guys, Scott* here, I’ve been on board following the podcast at April 2015 and have loved the journey. Almost five years in and I thought it was finally time to hit you guys up for some advice!

My wife Teresa* and I live in regional WA with our two kids aged 7 and 9. Both of us work full time for a state government department and we currently earn $270k gross per year combined. We own two properties in our hometown Perth. Our first home in Bibra Lake (shout out to Bryce!) which is valued at 430k with 350k owing. Our other property is a 1940s weatherboard cottage 5kms from the city with owner-occupier appeal, valued at 630k with 500k owing. So our total LVR is about 80%. Both loans are interest only and both properties have reliable tenants in them, paying $350 and $410 a week respectively.

We aren’t big spenders, and have no personal, car or HELP loans. Due to this, and the fact that our employer has heavily subsidised our rent whilst we’ve lived regionally, we’ve quietly amassed savings of $320k which currently sit in an offset account. We intend on staying in the bush for at least another 2 years before heading back to the big smoke, and in this we anticipate the $320k we have will grow by $75k each year in which we don’t do anything with it. However, I’m sensing there’s a huge opportunity cost here if we leave things any longer! Any advice as to what our next move should be would be very much appreciated. Keep up the stellar work.

 

39:30 – Question from David on Subdividing Parent’s Land:

Hey Ben and Bryce, Really been enjoying the podcast. I’ve got a bit of a unique question. At the moment I live with my parents and I am in my mid-20s, and I’m looking to subdivide a bit of their land as housing pricing are a bit too expensive for a single income. I was wondering if I classify for the First Home Buyers Grant if I build on their land and whether the actual certificate of title transfer needs to come onto my name, or can it remain in their name? Cheers, David.

 

Quote of the Episode

“An informed investor is a smart investor.”

 

Last Week’s Download:

Keen to find out how the state capitals recovered from their previous trough and the current outperformers? Looking for the data they chat of on the show? Just fill in the form below and we’ll send it to you right away.

Free resources: States Capitals Feb 2020

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Free report: State Capitals Outlook 2020

Keen to find out how the state capitals recovered from their previous trough and the current outperformers? You’re in the right spot! Just fill in the form below and we’ll send it to you right away.

Free resources: States Capitals Feb 2020

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Bryce and Ben have unpacked this report in detail in Episode 271 but it is quite hard to visualise it on audio. So we’ve created this report as well as the definition for the terms used.

We’ve also included the hot pockets that Jeremy Sheppard listed in the episode. Hot pockets are clusters of suburbs either neighbouring one another or in close proximity where demand exceeds supply in all of them. Heat in an “isolated” suburb (i.e. not in a cluster) may dissipate into its neighbours, diluting growth. But a cluster means buyers have fewer options. They can’t turn their attention to a cooler market unless they look much further afield. This makes clusters a good choice for investors to start their research.

 

 

 

 

 

Episode 271 | Property Outlook and Hotspots To Watch in 2020

Who wants to know what’s in store for the property market in 2020?

Think Hot Spots. Suburbs to watch. Capital city drive by. Property Predictions!!

Sure, we know all of this property outlook stuff is a bit “crystal-bally” folks… BUT we also have some cool data up our sleeves that’s backed in some serious research! So today we’re gonna give it a solid crack at letting you know what we think is going to happen this year!

And not only are we going to do a “fly around” of the entire country so we can paint a realistic picture for you, we’ve also pulled our Capital Growth King, Jeremy Sheppard, our from the lab to share the outperforming suburbs in each state and territory!!

For our folks who’ve been with us for a while, you’ll know who our mate Jeremy is… and for the folks that don’t — basically Jez is THE guy you want on your side if you want to find the best locations to buy in! He’s the Property Analyst, Research Director and Creator of DSR data, one of the many property research tools of Select Residential Property!

We’re not holding back on today’s episode either folks — you won’t JUST get the property hotspots, you’ll also get the insights into the specific properties we buy in each capital city. and why! Plus, of course, you’ll learn all of the states we’re currently buying in, the “up-and-comers” and the ones we avoid at all costs.

Let’s kick your year off with the CORRECT data-backed information!! (Also, you can get all of the numbers we refer to below. We don’t want your email or anything. You might just want it handy when we’re going through the numbers!)

 

Download All Of The Data We Refer To Here

Free Resources Mentioned:

 

Keen to find out how the state capitals recovered from their previous trough and the current outperformers? Looking for the data they chat of on the show? Just fill in the form below and we’ll send it to you right away.

Free resources: States Capitals Feb 2020

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

 

Key Learnings

  • Typical value versus median values
  • Current value vs. peak and trough in EVERY state & territory
  • How many outperforming suburbs are in each state?
  • The suburbs to watch in Sydney
  • The suburbs to watch in Melbourne
  • The suburbs to watch in Brisbane
  • The suburbs to watch in Adelaide
  • The suburbs to watch in Canberra
  • The suburbs to watch in Perth
  • The suburbs to watch in Hobart
  • The suburbs to watch in Darwin
  • The types of properties we buy in Sydney
  • The types of properties we buy in Melbourne
  • The types of properties we buy in Brisbane
  • The types of properties we buy in Adelaide
  • The types of properties we would buy in Canberra if we were an owner-occupier
  • The types of properties we would aim for in Hobart
  • WHEN we’re thinking of buying in Perth
  • Affordability and Apartments as Investment Properties?
  • The Capital King’s Property Hot Spots and Hot Tips for you!!

 

 

 

 

Bonusisode with Nerida – What’s the MOST IN-DEMAND suburbs for upsizers?

Our first Monthly Economic Outlook with Nerida Conisbee, Chief Economist of realestate.com.au and we’ll be talking about some serious updates folks! There have been some major events this couple of months so make sure to tune in.

Here are some of the topics we touched on today…

✔ Will rates be cut this week?
✔ Most in-demand suburbs for upsizers
✔ Updates on BREXIT and the US/China Trade War
✔ How will the coronavirus outbreak impact Australia’s Economy
✔ Why are listings hard to predict?
✔ Update on the property market across Australia Make sure to tune for more!

 

p.s. And of course, if you’d like more, subscribe to our podcast every Thursday at 3pm on iTunes, Spotify or your favorite podcast app!

 

 

 

Episode 254 | NRL Star Unpacks His Money and Property Story – Chat with Matt Srama

Top athletes often have a big spike in their income over their lifetime. That is, at the top of their game they’re looking at earning some serious coin… but beyond that… their income can plummet right down, sometimes to ground zero. And things get a bit tricky if the skills they possess aren’t necessarily transferable to the workforce too!

So, folks, what we want to tackle in today’s episode is this… how does a top athlete — or anyone on a fluctuating income for that matter — juggle a small window of time where they’ve got access to more cash than they’ll potentially earn in the future?? How can they maximise this so they can set themselves up BEYOND their time in sport?

Here to help us answer this question, and unpack his money and property story, is someone who has been there, done that… Matt Srama!!!

For those playing at home who might not be familiar with who Matt Srama is… he’s a professional NRL rugby league player for the Gold Coast Titans who had to park his career at the ripe young age of 26 due to injury. Meaning… after a solid career in the NRL, he’s personally experienced with what it’s like to be back “in the real world”! And he’s going to share A LOT of this gold with you today… and folks… you’ll see why what he’s learnt has set him up to work in a development role for the Gold Coast Titans, where now he helps other young players navigate this space!

Oh, and if you’re one of our folks who… ahh… aren’t particularly chuffed with our footy banter… …then you can breathe a sigh of relief!! Because we promise this ep is NOT just sports talk! There’s some pearls of wisdom in here that we can ALL learn from and apply in our own lives 😉

Pssst… and, yep, we got a new intro!!!

 

Folks, we’re doing Relay For Life!!

On October 26th our office is donning our runners and active gear (let’s be honest… ol’ mate Kingsley will probably where his black and white stripes) to participate in Relay For Life to help raise much needed funds for Cancer Council!!

Our goal is to crack $5,000 so we can help fund ground-breaking research into new and better ways to prevent, diagnose and treat cancer! So if you’d like to chip in — even if it’s just a couple of bucks — we’d love it if you could donate to our team here.

 

Resources Mentioned in today’s ep…

PICA’s Meet Up with Greville Pabst – happening on 31/10 in Docklands, VIC

Your Free Book —> Make Money Simple Again – (yep, it’s free and we encourage you to share the link www.makemoneysimpleagain.com.au to your friends, family and everyone in your network!)

 

The Top Five Standouts in today’s chat

  • A NRL Star’s Humble Money Upbringing & How It All Began
  • What’s Life As An Elite Athlete Like… And How Much Do They Get Paid?
  • How To Not Let Money Get To Your Head!
  • What To Do If You’re Earning Good $$$ Now, But You Know It Won’t Last
  • Matt Srama’s Property Story

 

 

 

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