2016 - Page 4 of 7 - The Property Couch

071 | How To Outsmart A Real Estate Agent?

By The Property Couch July 7, 2016 in Podcast, Real Estate Agent

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Before you go on, let’s make this very clear: We have full respect for real estate agents out there. This episode is not about highlighting the differences between us and them. Instead, what we are focusing today is the full role of a real estate agent. As insiders of the industry, we noticed that a lot of buyers out there do not seem to realise that the real estate agent is not working for them. Real estate agents work on behalf of the vendor and hence, at the end of the day, the role of the agent is to sell the vendor’s property to the highest bidder so buyers should not be expecting the real estate agent to be offering them any discounted price.

So today’s episode is about understanding the process the agents have to go through, the decisions they have to make and from there, suggest a few ways that buyers can implement to outsmart a real estate agent. Bryce and Ben will be sharing their tips on reading an agent’s body language, picking up the subtle messages, what does the property price guides actually mean and more! Tune in and let us know what you think! 🙂

Other resources mentioned in this episode:

Replay for our Facebook Live Q&A Chat – Watch here
Ben’s RBA Cash Rate June 2016 Announcement – Watch here

If you like this episode (How To Outsmart A Real Estate Agent?), 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://tpcaustralia.wpengine.com/topics/

Live Questions and Answer Chat on Property Investing – June 2016

By The Property Couch July 7, 2016 in Free Resources, Q&A, Videos

The Property Couch podcast is all about helping others avoid making bad property investment mistakes and sharing the insiders guide to property investing. That is why on the 29th of June 2016, Bryce and Ben decides to hold a Live Questions and Answers Chat on Property Investing so that we can interact directly with our fellow listeners. Thank you to all of you who have joined in and if you would like to watch a replay of this, here’s a recording on Youtube:

List of questions Answered:

Will Sederino: My question is about claiming depreciation on an existing property that has been renovated. We are about to purchase a property (using Empower Wealth’s Buyer Agents) that has recently been renovated by the previous owner and wonder whether we can claim depreciation on this renovation even though it was not us that completed it. My gut feel is that we would be able to? Is this correct?
Mitch Scholard: G’day fellas, wondering your thoughts on which capital city will see the best capital growth over the next 5 years.
Luke Stirton: Does development and renovation provide the secret to accelerated gains in today’s increasingly harder market to get ahead?
Angela Cerasi: Hi guys, I am new to property investing and am currently in my research phase. Have listened to all your podcasts and enjoyed them immensely! I have 2 questions. (1) If a potential investment property is to have owner occupier appeal, then won’t you be competing with owner/occupiers when it comes to buying? From what I understand this means you could be competing with emotional buyers who could push the price up. I don’t think renovating is for me, so I would be buying a place that would be pretty much ready to be lived in by tenants. I of course want to find an area which is gentrifying, but wouldn’t owner/occupiers who are looking for a great buy also be looking for this too? (2) If a buyers agent takes a fixed fee, how much time would they generally dedicate to finding your property? Do you come to them with the city/suburb in mind or do they come to you with those details based on your personal situation? Do they keep looking for you until a property is successfully purchased? I appreciate that all buyer’s agents would differ but maybe you can give me an idea of how it works?”
Maria Li: Can you do a PAYG withholding variation the first year that you own investment property (based on projected cash flows) or do you have to wait a year so that you can base future withholding variations on the previous year?
Leisa Caines: Hi Bryce & Ben, love the podcast & your book. Hear you talk about finding an investment savvy mortgage broker but where do you find one? I’m in North west area in Sydney
Brad McCreadie: Would you buy now or wait to see what happens to apartment prices in Briz. Looking at a 2 bedroom as owner occupy initially but then to use as investment.
Karl Frank: Hi Guys. What will be the impact to the housing market if Labour win the next election and implement their changes to the Capital Gains Tax as it relates to investment properties?
Mark Rogal: If Labour win the election, negative gearing and CGT changes won’t kick in until mid-2017. In your opinion, what is the most likely scenario for prices of established homes between now and July 2017? Thanks for the great insights! Cheers!
George Kallinikos: I was wondering what is a suitable time frame is to wait it out during a period of experiencing little to no growth. I have owned a one bedroom apartment in a Melbourne blue chip location of Hawthorn since 2008 and it has barely kept up with inflation. This has left me disillusioned during a period where Melbourne overall has seen incredible growth. I understand exit / repurchase costs but also realise that the opportunity cost of this investment has been quite high. What are your thoughts?
Bradden Mitchell: GDay Bryce & Ben. Does an investment grade property have to be over $500K ?
Jack Killalea: If there is a significant price correction in the CBD apartment market over the next 2-3 years, will these apartments become potentially good investments or because they lack scarcity they will always be fundamentally not investment grade?
Geoff Smith: Hey guys just a quick question, how does it work with using parents equity from their homes. How does the loan get structured or would it be used as a line of credit against there property?
Graeme Ash: Hello Couchers, Great Show 🙂 Quick question – with banks only lending 60% for loans, do you think it is better to go for the biggest, blue chip, investment grade, growth asset you can afford using all your super or go for a cheaper property so your 40% does wipe you out and you can start saving for property 2.
Felix Tjandrawibawa: What’s the best way to estimate capital growth for a suburb? Are you guys looking at historical growth (if so – how long do you guys look for?)?
Rachel Hubbard: Hey guys. I’m now in a position to buy my next investment property. However my financial goal is to pay off my ppor in the next 5-10 years. Given that property investment is a long term strategy, do you suggest buying another investment property in an attempt to gain equity and sell in 5-10 years to pay off my ppor? Or given the high costs involved in buying/selling, should I look to invest in other ways to achieve this goal?
Alex Hill: Are all house and land packages dud investments? In 2013 I bought land in North Lakes QLD and built a lowest house. I spent about $50K over median price for the area, trying to maintain some owner-occupier resale appeal. It’s currently cash flow neutral but I’m concerned there will never be any growth, and I’ll now struggle to accumulate a deposit for a second investment property. What are your thoughts?
Amy Hambin: When building an investment property is yield calculated on land and construction costs or the first valuation on completion?
Daniel Stocks: Hi guys, do you often come across clients who’s properties come in at less than purchase price when applying for finance?
Sam Hockey: Hey guys, am I better off looking at an investment property towards the upper end of my lending capacity ($800k) to get into the better areas of Brisbane or looking further out for something around $400k to setup my next investment property purchase sooner? Love the podcast I’ve just finished it for the 2nd time around!!
Richard Bristoe: Hi Bryce and Ben, I just want to ask what are your thoughts on Brexit, and how it will affect the Australian property market in the short and long term?
Mitch Scholard: Would love your thoughts on the Sunshine Coast, I feel like it has great owner occupier appeal but not sure it has the income to keep property prices increasing.
Daniel Stocks: If looking for properties interstate in unfamiliar areas, what advice can you give for narrowing down investment grade suburbs?
Tammy Nguyen: What are your thoughts on the Logan area in Brisbane?
Sam Hockey: How much does a Buyers Agent cost?
Gaz Slater: How long do you wait for a city that’s nearing the bottom of its cycle before buying. Eg Perth.

June 2016 RBA Cash Rate

By Ben Kingsley July 6, 2016 in Free Resources, Videos

Here’s Ben’s commentary and opinion on the RBA’s July 2016 cash rate announcement.

070 | Q&A – Buying a property with another person, security guarantee and rentvesting in Gold Coast

By The Property Couch June 30, 2016 in Podcast, Q&A

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Back to back Questions and Answers episode! We’ve had a great time yesterday on our Facebook Live and hence we thought we should answer some of our other listeners’ questions. This week, Bryce and Ben looks at the questions below. Thanks again for submitting your questions!:

Question on entering the property market from Glenn: I have 2 daughters in their early 20’s. What advice can you give them on the best way to enter the property market? Thanks

Question on buying a property with another person from Stevie: I am interesting in the issues associated with buying property with another person. For example, I currently own two houses (bought years ago) with my brother as investments and I now want to buy another within to live in (as I can’t get a loan with just my salary and want to use the equity in the houses in lieu of deposit). This will then restrict my brother’s borrowing capacity to buy a property to live in if he wants to do so in a year or so, and we are at a bit of a (friendly) stalemate with what to do about it – buy another or not.

Question on Buying a property with another person from Michael: Hey guys – just wanted to say I’m loving the podcast. Found it about a week ago, have listened to hours of content in a short amount of time. Such a great resource. Has been good to hear that a lot of my ideas and research is being validated in what you’re saying, but has also given me some other things to think about. I’m about to buy my first property in partnership with my cousin, am making an offer today on a great find that’s too good to pass up. 15km north west of the Melbourne CBD. $150k under median price in the area. Quick sale needed as the vendor needs finance asap. Just wondering, what would be a bad figure in terms of rental yield and annual growth? And then I guess what would be the better figures to see? Thanks again for such a great learning tool.

Question on rentvesting from Samuel: I am very open to the idea of Rentvesting, however I am torn between Rentvesting or purchasing a Principle Place of Residence, of which I would live in for 12 months and then be rent out for 6 years (thus avoiding CGT), plus rent out the other room/s whilst living in the property. I would love to hear both your thoughts on this one given the current market conditions and also the Gold Coast Suns performance this year.

Some of the resources mentioned in this podcast:

Episode 54 | Entry into the property investment market, debt reduction and investing in house and land packages – Listen here
Episode 59 | Rentvesting: What is it and who is it for? – Listen here
Facebook Q&A Replay Video – Watch here

If you like this Q&A episode (Buying a property with another person, security guarantee and rentvesting in Gold Coast), 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://tpcaustralia.wpengine.com/topics/

069 | Q&A – Where is that sweet spot between Growth and Yield, investing in metro or regional and more

By The Property Couch June 23, 2016 in Podcast, Q&A

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It’s Questions and Answers time! This week, Bryce and Ben looks at the questions below. Thanks again for submitting your questions!:

Question on Growth and Yield from Steve: Anyhow, a question for the podcast. Growth and yield are like a sea saw. As one goes up, the other goes down. Where I wonder is that sweet spot? Where both balance nicely and their feet dangle without touching the ground? For example, the best growth may be on Sydney Harbour with a view, but you may be negative $1,000 a week. So you go one suburb back, negative $800 a week. So you go one more back negative $600 a week. At some point you must hit a spot where you say, that’s the best growth I can afford. How do you decide that sweet spot? Is it different for all investors? Even if James Packer said to you, “Get me the best growth you can, income is not a problem” would there still be a point where you think, “Geez, even if we buy him a house on the harbour, the growth still won’t cover that massive shortfall over time.”Great show, keep it up. You are both a shining light in a dodgy, unregulated shark-filled industry. After all, my experience with people who talk very confidently but don’t know what they’re doing, (the enthusiastic amateur you effectively call them) I came up with my own saying, “Confidence does not equal competence“. Unfortunately, all you need is a little doubt in your own abilities and you default to the more confident person, who you may well know more than.

Question on Metro or Regional from James: I am looking to invest in my second property with my partner, we live in a rural area (Albury/Wodonga) and have around $100,000 in equity in our current owner occupied dwelling and good incomes with a maximum borrowing capacity of around $700-800k. Do you suggest trying to break into a Metro market (i.e. Melbourne) with a property in an investment grade suburb, which will in turn max out our borrowing capacity, or alternatively buy 1-2 properties in a major rural city?

Question on forecasting capital growth from Kayne: Just have one question in regards to forecasting Capital growth. I know you are conservative with your vacancy and interest rate assumptions (7.5% & 10% respectively) in your models. Are you also conservative in your CG assumptions (e.g if historical growth was ‘x’ would you round down a percent or 2 or keep it the same?) if you’ve covered this and I’ve missed it sorry for the double up, if not I look forward to your answer.

Question on active investing from Brian: Hi guys love the podcast immensely! If possible could you discuss views on being able to be an active investor to essentially create an income while still passively investing through leverage? Is this a possible scenario or what would someone need to look into to be able to do something similar…. I’m a tradesman so majority of the work I could do myself. Thanks very much!

Some of the resources mentioned in this podcast:

Report from CoreLogic : A profile of the Australian Investor – Who, Where and What? – Download here
Episode 37 | Understanding the Scarcity factor in Property Investment – Listen here
Case Demonstration: 4% Growth and 6% Yield vs. 6% Growth and 4% Yield – Watch here
Episode 51 | Will Labor’s proposed changes to Negative Gearing policy be good or bad for ordinary Australians? – Listen here

If you like this Q&A episode (Where is that sweet spot between Growth and Yield, investing in metro or regional 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://tpcaustralia.wpengine.com/topics/

068 | Common complaints we hear from property investors

By The Property Couch June 16, 2016 in Podcast

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It has been some time since our last episode on investing and mindset framework so this time, Bryce and Ben will be unpacking the common complaints they hear from property investors. Here are the top 9!

Wrong asset
No buffer in place
Mentoring was actually salesmanship
Not maximising tax depreciation with Quantity Surveyor
Solo sport
Self property management (Check out Episode 31)
Poor cash flow management (Check out Episode 3)
Not starting early enough
Selling

Apart from that, they will also be sharing some insider information on ‘offers’ they’ve received from property spruikers out there, Labor’s debate on negative gearing and the changes on foreign buyer stamp duty. Also, if you are interested in the BMT Tax Depreciation Application Form mentioned in this podcast, just fill in the form below and we’ll send it to you right away:

Free resources: BMT Tax Depreciation Application Form

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Other resources mentioned in this episode:

Property manager checklist – Download here
Ben’s Money Magazine article – Read here

PS: We’ll also be holding a Live Q&A Event on Wednesday, 29th of June at 8:30 pm. Check out our Facebook page for more information!

If you like this episode (Common complaints we hear from property investors), 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://tpcaustralia.wpengine.com/topics/

67 | Property valuation process and the journey of a property investor – Chat with Kieran Clair

By The Property Couch June 9, 2016 in Podcast

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We have a guest on the show today! Kieran Clair, Editor of Australian Property Investor Magazine joined Bryce and Ben to talk about his role in the media and publication industry specialising in property investing. Prior to journalism, Kieran was an experienced property valuer and has more than 20 years of experience valuing properties for owner occupiers and property investors. So for today’s show, the three of them will be discussing:

Kieran’s experience as an investor and what motivated him to build his portfolio
The mistakes, lessons and investing tips he learned as an investor
His role as the editor of API Magazine
How the property valuation industry has changed over the years
What’s the property valuation process like
The types of properties that tend to be valued at below market price
Factors and considerations that would affect a property’s value from a valuer’s point of view

Cory

By Ivise June 7, 2016 in Uncategorized

Bryce and Ben have been providing me with free property education each and every week. They start from the beginning and lay out the who, what where, when and how of investing in property. Being a frequent listener of their podcasts and also a reader of their book, I have gained so much confidence and feel education enough to take the next step and begin looking for my investment savvy team! In addition – these guys have a great yarn, share some incredible dad jokes (yes, you Ben!), interview intelligent, professional, positive people and they’ve even lead me in the direction of self motivation; pointing me to the likes of Zig Ziglar. The Property Couch has become part of my life an I thank you gents and Ivise for providing such a great podcast for people to better their financial situations! I’ve recommended the podcast and your book to friend and family! – Cory on iTunes, June 2016

066 | Winter is coming and the air will be colder up high

By The Property Couch June 2, 2016 in Podcast

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Well, technically winter is already here. However, we will be talking about the Property Market in this episode and for all of you who are a fan of Game of Thrones, you’ve guessed it right. It’s not going to be a good news story.

Now, you’ve heard us talking about the danger of high-density developments before but this time, we are hoping to solidify our message by sharing some numbers with you. It is not a secret that we’ve seen a whole lot more of high to medium density apartments coming into the market in the last 24 months and a lot more will be completing in the next 18 months. Below is the table that Bryce and Ben were talking about in the podcast.

Capital city	# of Unit Sales	Average Annual unit sales past 5 years	Total New Units next 12 mths	Total New Units next 24 mths
Sydney	34,216	43,442	34,300	81,696
Melbourne	28,506	30,781	29,541	80,503
Brisbane	15,880	14,932	16,652	44,511
Adelaide	6,988	6,195	2,581	6,002
Perth	5,331	6,834	7,031	13,797
Hobart	1,026	1,005	201	442
Darwin	864	1,026	985	1,256
Canberra	3,384	3,929	811	2,922
Combined	96,195	108,144	92,102	231,129

^{* This data is an extract from CoreLogic’s article dated 16 May 2016 called ‘Record high unit construction increases settlement risk’. To read CoreLogic’s commentary, please click here.}

So how will this affect the Australian Property Market and its existing properties? Will there be a significant market correction and if so, should buyers stay off until this happens? Bryce and Ben will also be answering a question from Vlad:

John Symond on 3AW predicted a 10-20% fall in property prices if Labour’s policy on negative gearing were to be implemented. Given the uncertainty, is it prudent to wait until after the election to make decisions about investing in property and to see, should labour win, what their sledgehammer will do to the market?

PS: We’ll also be holding a Live Q&A Event on Wednesday, 29th of June at 8:30 pm. Check out our Facebook page for more information!

If you like this episode (Winter is coming and the air will be colder up high), 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://tpcaustralia.wpengine.com/topics/

065 | Q&A – How will technology impacts the property market, investing in strata properties and more

By The Property Couch May 26, 2016 in Podcast, Q&A

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Today’s episode starts with a recap on the AREC16 Conference (ps: Bryce refused to talk about AFL). Bryce and Ben also discussed about the possible impact of technology to the property market for example, what would happen if we don’t need to drive a car in the future anymore? Would car spots still be a considerations in asset selection?

They then moved on to answering a couple of the listeners’ questions below. Thanks again for submitting your questions!:

Asset selection question from James: Love the podcast! Just wondering if there’s a big difference between investing in a 2 bedroom house or a 3 bedroom house. Everyone is telling me ‘the more bedrooms the better’ however others have told me that for an investment it doesn’t matter. Thanks!

Next step question from Mat: My wife and I are on the move from Newcastle (Whitebridge) to Coffs Harbour on the NSW mid north coast. Our house in Whitebridge is our first home which we purchased in 2011 for 365k and is currectly valued at 490k. Ideally we would like to keep our house in Whitebridge as an investment property and look to buy in Coffs Harbour. The rental return will be $420 which comfortably covers the mortgage at interest only. I see the house as being a good investment grade property and ticks the boxes that you both talk about in the podcasts. What should we do?

Question on strata properties from Sarah: I’ve got a question about strata properties. We have two townhouses, one is in a smaller complex with 8 townhouses & the levies are reasonable, there is rarely any issues with maintenance etc. The other one (our first purchase!!) is in a complex with 30 townhouses/units, the units have lift access/underground parking & we’re paying about $985 a quarter in levies.We are constantly getting correspondence from the strata company with owners having maintenance issues, leaking toilets/tiles, graffiti removal, underground car park issues…. We’ve committed the property, it will give good growth & should be neutrally geared in the years to come (held for2yrs to date) so selling is out of the equation.Would love to hear your thoughts on strata, when is it a good idea, when is it a bad idea. Should I be religiously sending back votes for meetings etc? When I read the strata documents that require owners response, it’s all dutch to me, can you explain how to respond to things I can vote on & making sense of the minutes etc. Thanks guys, appreciate any advice you can give on strata.

Question on timing the market from Leighton: I’d love to hear Bryce and Ben’s thoughts on the property cycle and the part that it plays in investment decisions and how the cycle ties in with “timing the market”. It seems that different parts of the country operate in different phases of the cycle.

If you like this Q&A episode (How will technology impacts the property market, investing in strata properties and more), 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/

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Free resources: BMT Tax Depreciation Application Form

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