For the last episode of 2015 and as promised for our Summer Series, we will be going through quite a few questions! Bryce Holdaway and Ben Kingsley will be answering the questions below from our fellow listeners. It’s going to a full on one so sit tight! 🙂 :
Building cash reserve question from Maria : Can you please discuss how to build cash reserve buffers into your property investment plan, and the options for funding unexpected large expenses like medical expenses and family needing financial assistance.
Investing on the suburb next-door questions from Peter : Is investing in a lower priced residential suburb surrounded by higher value median suburbs a good investment strategy? With hope that property you’ve invested in will eventually go up in price? Granted that suburb also has all the necessary amenities close by such as public transport, schools, small shops etc.
Property professionals question from Josie : I have been listening to your podcasts which I find really interesting and informative. I am really interested in buying an investment property and am currently looking at the best way for me to do this. I am currently talking with my finance adviser and accountant to establish the best way to do this, ie, through a self managed super fund or using my own home which I own as capital. As you mentioned in your pod cast, are these the right people to get property advice from. Would appreciate your thoughts
Loan structure question from Mark: Love the podcast and have been a loyal listener since the first few episodes. My partner and I have recently purchased our first new home and are considering putting our loan repayments to interest only and banking the money we would be paying off the principal in an offset account. We want to get an investment property and start building a portfolio and see this as a way of saving money quickly. What do you guys think?
Investment strategy question from Rick: Over the years, I have been advised to buy in quality, blue chip and desirable areas with a proven growth history which aligns to Empower Wealth’s strategy. The downside is that it is priced at a premium and the cash flow is usually poor which hampers an investor’s ability to build their asset base until the rental income improves.
Becoming a Buyers Agent question from Daniel: What does one need to do, to become a buyers agent? What schooling/qualifications are needed to become one?
Renovating for profit question from Sylwia: Hi there, I am looking to get into renovating for profit in the nearest future. I am at the stage of educating myself and would love to hear from you Gents about renovating for profit as an investment strategy: renovating to rent vs renovating to sell, buying the right property at the right price, good sources of information, dangers and traps of renovating as a strategy, property “flipping” e.t.c. I look forward to hearing you point of view on this topic.
Merry Christmas! It’s the first Christmas on The Property Couch and Bryce and Ben is definitely in a festive mood. In this podcast they will be sharing some of their stories on mortgage brokers and what role do they play in building a property portfolio.
We’ve spoken about this before in Episode 17 where we talked about the concept of a Personal Banker. In this episode, we’ll list out the criteria to look for when you are thinking about including a mortgage broker into your property team. Yes, it does need to be an investment savvy broker but what else? Bryce and Ben will also be discussing about why loan structure and a sound finance strategy is crucial.
We will also be answering this question from Andrew:
Hi guys, loving the podcast. You’ve talked in past episodes about what to look out for when choosing to engage a property manager for your investment property. Could you discuss how you would go about selecting a mortgage broker? I have utilised the services of mortgage brokers in the past and have found that many of them are purely transactional and only use the big 4 lenders.
Our next guest on The Property Couch is Steve Waters from Right Property Group! Steve comes from a Buyers Agent background and his company is part of the Property Investment Professionals of Australia (PIPA) association.
With a combined experience of more than 30 years in the property industry, this trio will be chatting about:
What triggered Steve to start his investment journey and the biggest mistake he had ever made in his own portfolio
This week on The Property Couch, Bryce and Ben discuss about the moving parts of a cash flow management strategy. As compared to Episode 3 (Four Pillars of Mastery – Cash Flow Management) where we talked about the flow of money, this podcast is mainly about the Money and Wealth Accumulation Model. It includes the variables and assumptions to consider when modelling sophisticated wealth outcomes. As this topic can be fairly detailed, we strongly recommend our listeners to have the diagram open while listening to the podcast.
We will also be answering this question from Bradden:
You often refer to paying down debt during your talks as a means of creating passive income. Is there a strategy of paying down debt on your rental properties? Is it just as simple as paying P&I? Do you only start paying down debt once you have finished your accumulation phase? Does this only happen when you start to sell one of your properties? I’m interested in hearing your thoughts on paying down debt. PS: Ben’s not a bad bloke for a Collingwood supporter.
This topic is also discussed in Part Three (Section 10) of our book: The Armchair Guide to Property Investing. For those who have the book, you can also refer to page 219 for additional reference. And here’s the video mentioned in the podcast:
Introducing the first episode of our summer series! Let’s kick start with a Q&A episodes. If you have a property related question that you couldn’t solve or needs an opinion on, please do not hesitate to let us know here. In this episode, Bryce Holdaway and Ben Kingsley will be addressing some topics on:
Line of Credit (LOC) question from Brad : Firstly, love the podcast, but have to agree that the sports commentary should be left out. ( 😥 from TPC Hosts). I have a finance related question, specifically about the intricacies of Lines Of Credit. All the articles I can find say you should get a LOC, which I get, but none drill down deeper into the intricacies of using the LOC. I understand that you would use your LOC for investing costs, such as a deposit on new property, or the levies or rates for a property. My uncertainty is whether I am then able to claim the interest charged on the LOC for these expenses. To make things more complicated, what if you were to pay your investment loans off using this LOC. Surely you couldn’t then claim the interest on the LOC as well as the investment mortgage? That would be double-dipping, right? Please do a segment on your show (which I listen to religiously) that explains more how to use the LOC tax effectively and legally.
NRAS questions from Cesar : What is your view on the NRAS program? From everything I hear from you it is probably a no go, but would be nice to hear more as many spruikers are heavily promoting NRAS to investors.
Property Portfolio question from Sandy : Guys, love the podcast and wish I had listened to it a few years ago. My suggestion is to discuss the strategy to fix a “broken” portfolio ie a number of under performing properties (pretty much all the things you have explained to avoid) that were spruiked.
Due Diligence and Research from Daniel : You always hear from professionals in their podcasts that you need to do due diligence and do your research into finding a property. I’m a first time investor, but this question could be used for every investor. What resources do you need and what do you have to look for in conducting due diligence? I wouldn’t know where to begin. Could you please elaborate on who one can achieve this?
Property Insurance from Daniel : Advice on what’s the best type of insurance to have on your investment property?