Joining us on our first online recording today is Prue Muirhead! Prue is the co-founder of Muirhead Property Management, the 2010 Property Investor of the Year, teaches property investment and property management at TAFE Adelaide and an active investor with 18 positively geared properties under her belt. So in today’s episode, Bryce and Ben will be chatting with her about how she build her positively geared property portfolio and:
- Her journey as a sophisticated property investor, the hurdles she faced along the way and how she overcame that
- Understanding different risk profiles and property investing risks when building a portfolio
- The lending challenges faced by a self-employed and how she used the equity in her current home to build up her portfolio
- What’s her investment strategy and her definition of manufactured property growth
- The importance of continuous learning, research and taking initiatives to an active investor
- Self-management versus using a property manager
- Potential for upgrades and renovations from a property manager perspective
- The mindset and preparations required for property developments
- Mistakes made along the way and her top tips for other property investors
If you like this podcast: “Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)”, don’t forget to rate us on 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://www.thepropertycouch.com.au/topics/.
SURPRISE! On this Boxing Day, we are having a joint podcast with Phil Tarrant from Smart Property Investment Show! Phil joined us back in Episode 52 talking about his journey as a property investor but in this Bonusisode (Bonus Episode), the focus will be on investing in property in 2017! Ben and Phil will be chatting about:
- The health of the Australian Property Market in 2017
- Understanding the different market cycles and how economic activities and infrastructure development may change the market’s trajection
- How to filter out all the noise regarding property investing and look at hard facts when making an investment decision
- The prospects and returns from investing in apartments and city fringe location
- What are their thoughts on the lenders’ out-of-cycle rate rise
- What are the criteria lenders are looking for in an ideal borrower
- The importance of borderless investing and buying counter cyclical when building out your portfolio
If you like this podcast: “Bonusisode – A Boxing Day Chat Between The Property Couch and Smart Property Investment Show”, don’t forget to rate us on 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://www.thepropertycouch.com.au/topics/.
As Christmas is a time for giving, we thought today’s special Christmas episode should be none other than a Q&A session! Topics covered today include debt-retirement and refinancing loans, how to go about upgrading your PPOR (Principle Place of Residence), whether it’s worth paying for a financial planner and more. (And click here for your free The Property Couch Christmas Pack!) Today’s questions are from the following listeners:
- Chris on debt-retirement and refinancing loans: Hi there, was hoping you could ‘unpack’ the ‘reality of’ the following finance-related scenario for me. I understand there is an “accumulation phase” where the investor actively accumulates as many quality, appreciating assets as required/wanted before transitioning to a “debt-reduction” or debt-retirement phase in the property investment journey. I was hoping you could spend some time describing what this debt-retirement phase actually looks like, assuming the investor has between 3-5 investment properties all on interest-only terms.
Changing all of these to principal & interest at the same time would probably be too strenuous on the budget, so is it a case of paying off the largest investment loan on principal & interest terms while refinancing the remaining loans as interest-only for another 3-5 years and start knocking off the balance of the largest loan? Or is it a case of building up the offset account of each loan evenly so that you end up paying less interest across all of the loans until you are in a position to pay the loan back in full?
But in this scenario the banks will eventually put you on a principal & interest payment unless you refinance again to an interest only loan, so how do you juggle at least 5 investment loans potentially all coming off their interest-only terms within 12-18 months of each other, while you’re trying to retire the debt without blowing the family budget? ($150+ principal payment across 5 loans = $750 a week which would destroy most family budgets).
Is it a case of focusing on one property at a time until the rent covers the principal + interest payments, before moving onto the next property or is it a case of continually refinancing to interest-only loans and building up the offset accounts? Is it better to focus on the largest loan first or distribute funds evenly across all loans? How do you actually go about entering the ‘debt-retirement’ phase on a portfolio of 5 investment properties (assuming all currently interest-only repayments with separate offset accounts but the interest-only period is expiring for all 5 loans over the next couple of years). This does not take into account the PPOR but we can ignore that part of the equation for the above scenario.
- Bill on upgrading PPOR: My question is…I have paid off PPOR (home loan account closed) and would like to upgrade PPOR. What advice/suggestions do you have regarding using ex-PPOR as investment or sell off ex-PPOR to pay down new PPOR debt and then buying an investment property?
- Anonymous on investing in a Financial Planner: G’day, I have a question that I think a lot of listeners would relate to and something you guys have not covered thus far.Firstly about me. I am 32 and have recently developed a passion to enhance my knowledge of residential property investment. I am in the Army and have a young family on my income alone. I earn 106k per annum gross. I bought my PPR in 2012 in Sydney which is valued at circa $8800k currently. Since I started my learning, using you guys as my guides, I have done the following.
- Analysed our cash flows for a month to understand where our money is going.
- Gotten rid of all non-deductible debt i.e. credit cards, pers loans etc.
- Bought our first investment. A two Bedroom apartment near Penrith. It’s walking distance to the station and five minutes from the train station, Nepean hospital and UWS. I also rolled our car loans into the investment. The place is currently leased with a 4.2 % yield.
- Manage our money to allocate spendings for myself and my wife similar to your model you advise with regards to offset and spendings accounts.
I also have a broker and accountant and also use a buyer agent. So my question:
I recently sought advice from a financial planner. After an interview, he sent me a proposal and plan which also outlines his fees. His fees were $500 per month with monthly payments that would be ongoing for a period of a few years. If cash flow management is essential and using surplus cash flows to reinvest is a key step, then how is 500 per month going out enabling this? Isn’t this counter to one of your pillars of mastery? If I had a large income and a large portfolio, then this would be manageable. But I don’t. Are all financial planners this expensive? I can see the value of buyers agent’s fees but I can’t see the value in planners for myself.
- Andrew on when would be the best time to invest in property: I’m 26, my wife is 25 (DINKS), we live in Brisbane and our combined income is $150k. We’ve almost finished paying off our wedding (ouch) but are now planning for the future and want to get ahead before kids come along. We don’t own a house (currently renting), however we’re strong savers and would be in a position to buy in approximately 12 months. The issue is, our plan is to move to Adelaide in 2018 to allow my wife to study Dental Hygiene (limited college options in Qld). Would we be best to buy a house/IP right before we move to SA and rentvest? (and drop to a single income of $100k), or wait until she graduates (2 year degree) and look to invest then? Neither of us want to sit still for 2 years, but we’re reluctant to buy right before dropping to a single income.
- Julia on Buying a home: I have only recently discovered your podcast and it’s awesome. Thanks so much for sharing your knowledge. I know your advice is ‘location first’ – I’m torn between two properties. A run down 1970s one bed room unit in Neutral Bay (ground floor) vs 10 year old amazing one bed room unit in Marrickville (top floor). Both similar price with similar strata. Neutral bay property needs everything renovated but has structural limitations. Marrickville unit has an amazing balcony that has a green leafy view and makes you feel like you’re at a holiday resort. I know Neutral Bay is blue chip suburb but would you consider Marrickville as a suburb with a potential high growth over next 5 years? This is my first property and I’m planning to live there for next 2 years then potentially rent it out. Any advice?
If you like this Q&A episode (Investing in a Financial Planner, Upgrading your PPOR, Loan Strategy to Build your Portfolio and more ), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://www.thepropertycouch.com.au/topics/
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Hi all! As promised, here’s The Property Couch Christmas Pack for 2016! Just leave your details above and we’ll send it to you right away.
You should be expecting lots of goodies in this pack such as:
- Case Study for Single 30-something Investor (How to Build a Property Portfolio to Retire on $2,000 a week in Passive Income)
- Fact Sheet on Guarantor Loan
- Presentation Slides (7 Ways to Get Kids on the Property Ladder Sooner)
- Link to the Population Growth Estimate
And whilst you’re here, check out our New Website… hint, check out the “About Us” page, it is a pretty cool look at how far we’ve come.
Merry Christmas and have a happy and safe New Year! [icon name=”tree” class=”” unprefixed_class=””] 😎
Bryce, Ben and The (TPC) Stig
Keeping to our Summer Series tradition, Bryce and Ben are joined by yet another special guest in today’s episode; Nerida Conisbee – The Chief Economist of The REA Group: now the biggest digital real estate company in the world! With more than 20 years property research experience throughout Asia Pacific, Nerida also appears every Saturday on SkyNews Real Estate program, is an adviser on property market conditions to major Government bodies and has held senior positions within commercial agencies and major consulting firm.
Leveraging on her experience and knowledge in the property industry, the three of them will be chatting about:
- How are the two capital cities, Sydney and Melbourne performed in 2016 particularly in the apartment market and what’s the outlook for 2017
- What’s the level of housing affordability for property buyers across Australia
- Investing habits between Sydney and Melbourne, and how these compare to major cities around the world and the drivers that are slowing down property listing in those two cities
- Potential changes to the lifestyle trends in Sydney where houses are less affordable for young home buyers and how this would affect Melbourne
- Research data and methodology in commercial real estate as compared to residential real estate
- Seeing the GDP drop and finding that balance between the property market being strong and weak; therefore, knowing when the best time to sell is
- The 2017 outlook for Perth, Brisbane, Hobart, Adelaide, Darwin and Canberra and which market to invest in for 2017
We hope you enjoyed this podcast and look forward to hearing your thoughts on the topics brought up! And here’s the site that Nerida mentioned in today’s podcast:
If you like this podcast: “Which Market to Invest in for 2017? – Chat with Nerida Conisbee”, don’t forget to rate us on 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://www.thepropertycouch.com.au/topics/.
Hi Couchers! The Case Study for Single 30-something Investor demonstration is finally here! We know some of you have been waiting for this one since our second Facebook Live back in September. Thank you for your patience and let’s not wait any longer, just fill in the form below and we’ll send you the link to start watching the Case Study Demonstration on How to Build a Property Portfolio to Retire on $2,000 a week in Passive Income for a Single 30-something!
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