Episode 120 | Secret To Making Money While You Sleep – Chat with Tom Panos

We’ve finally got Tom Panos on the show! For those who’s unfamiliar with Tom, he’s the founder of the Real Estate Gym, 5am Club, co-host of the Million Dollar Agent podcast, a weekly commentator on SKY News Business, Channel 602, Real Estate Advertising Director for News Corp and is one of Sydney’s leading Real Estate Auctioneers as well as being a sought-after keynote for the Real Estate industry. On top of that, he’s also an active property investor and has been investing for the past 25 years.

So what will the three of them be chatting about today? Here are some bullet points!

  • How will having a regime in your daily life help you
  • What are Tom’s drives to success and how they’ve changed over time
  • Why playing the long game matters in property investing
  • How did Tom start his portfolio and tips for investors who are looking to do the same
  • Formula for a successful renovation project
  • Tom’s response to those who are concerned with the media’s property boom and bust stories
  • His mentors in life and relationship with Jon McGrath
  • Top 3 tips for buyers looking to bid at auction

 

If you like this podcast: “Secret To Making Money While You Sleep – Chat with Tom Panos”, 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/

Episode 119 | The Power of Compounding

Smart Money Management. Savings. Leverage. Compounding interest.

That is basically what we are talking about in today’s podcast as inspired by two of our listeners who wrote in. Now, rewind a few episodes, and you’ll find the boys quoting Albert Einstein famous words, “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” And today’s focus is all about getting the foundation RIGHT, finding the SWEET spot for your money management habits and understanding WHAT delayed gratification is all about.

One of the questions that we asked the listeners today is,

Would you take a million today or take a cent now and double the amount every day for the next 30 days?

Tune in to find out the numbers behind this question and here are the Free Resources mentioned in today’s podcast:

 

Just in case you’re wondering, here’s what the two listeners wrote in:

 

  • From Chris:

Hey guys. Love the podcast. I’ve told so many people about you guys. Out their flying the flag. One day I’ll probably knock on your door for a job. Seriously.

I find that one of the biggest advantages/disadvantages to building wealth can of be determined as to whether you are or aren’t on the same page as your partner when it comes to finance and household spending. I meet so many people in life who are either money savvy (to some degree) or they just aren’t. I love that we all have different passions in life, it makes the world go round, but wouldn’t it make life, relationships and wealth building easier if we all LOVED the concept of making our money work harder for us. We were all money SMART 🙂 *Thanks rubbish Australian education curriculum!

So my challenge is to you. Not an easy one. Do one podcast that in the most effective mainstream fashion, gives those that aren’t ‘interested’ yet, just a taste of how they MUST be money smart. Because…it is not actually that hard, how it can impact their lives so dramatically and how they should take a bigger interest in how to make their money work for them now if they want options of living a wonderful life. A life of experiences. Inspire them. One podcast I can make my loved ones listen to, to try flick that switch in them to take more control of their finances with joy. Like when I read Rich Dad Poor Dad. I know how amazing compound interest is, I know how amazing leverage is, but so many people just don’t. Therefore they don’t know why they should be delaying gratification. So they simply choose to spend.

In a time that is crazy busy for you guys building a business and living your own family lives, well done on giving so much back to society. You will never know how great an impact you have had on generations to come.

 

  • From Greg:

Hi Guys

I just watched the first video you’ve done with realestate.com.au. Congratulations on the partnership and great work as usual.

Just one comment on the first video. The savings/investment glass got filled with what was left over. This goes against many of the gurus (The Richest Man in Babylon, Robert Kiyosaki etc) who all say “pay yourself first”. So, in the video, the savings/investment glass should have its share first (whatever amount the person has decided) and then the other glasses divide up what’s left over.

Keep up the great work.

 

If you like this episode (The Power of Compounding), 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/

Episode 118 | Create Wealth Through Your Assets, Not Your Pay Packet – Chat with Craig Stephens, Managing Director of Jas Stephens

Today’s podcast title is a direct quote from our special guest, Craig Stephens! As the Managing Director of Jas Stephens, with a history spanning over 90 years and four generations and the leading real estate agency in Melbourne’s Inner West, Craig is also an active investor himself who started building his portfolio back in the late 1980s. He started off as a bond trader and worked with Merrill Lynch in London before coming back to Melbourne to take over the family’s business. With his experience, both in the financial and property market, the three of them discuss about:

  • What are the critical elements in a successful business and how similar they are with property portfolios
  • Who motivated him to buy his first property and his investment strategy ever since
  • The market trend for the past 20 years in Melbourne’s inner west
  • What is the Rule of 72 and does property doubles every ten years
  • Who should be on your panel of experts and why only meeting your accountant at tax times isn’t good enough
  • Understanding the risk in buying a property
  • Tips for buyers when dealing with real estate agents and when to get in touch

 

Resources mentioned in today’s podcast:

  • REA Video | Having trouble saving? Time to forecast your finances >> Watch here
  • Recommended Book | Think and Grow Rich by Napolean Hill >> Learn more
  • Bryce’s Life Hack | How I organise Evernote by Michael Hyatt >> Read here
  • CoreLogic | Quarterly Housing & Economic Review – April 2017 Release >> Download here
  • CoreLogic | May Home Value Index >> Read here

 

If you like this podcast: “Create Wealth Through Your Assets, Not Your Pay Packet – Chat with Craig Stephens, Managing Director of Jas Stephens”, 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/

Episode 117 | Everything You Need To Know About Depreciation Changes – Chat with Bradley Beer, CEO of BMT Tax Depreciation

We’ve got Bradley Beer, CEO of BMT Tax Depreciation on the podcast today! Now, some of you might remember Bradley back in Episode 10 where we talked about what is a tax depreciation schedule, how it works and if all property investors should have one done.

For today’s episode, however, we will be relating back to Episode 115 where we chat about the impact of the recently released Federal Budget had on property investors, focusing specifically on the depreciation changes. So here are the topics that they touched on today:

  • Exactly what part of the depreciation deductions are affected by the proposed changes?
  • Are capital works deductions still available to be claimed at 2.5% for 40 years?
  • What is the significance of 7:30 pm AEST on the 9th of May 2017?
  • Will they be looking at the contract date or settlement date?
  • Do the proposed changes affects tax depreciation schedule that was previously submitted?
  • How will this impact investor’s cash flows and is there a difference between new vs old property?
  • What is the logic behind the changes on investor’s travel expenses?

 

Free Resources:

 

 

If you like this podcast: “Everything You Need To Know About Depreciation Changes – Chat with Bradley Beer, Managing Director of BMT Tax Depreciation”, 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/

Episode 116 | Q&A – How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA and more

It’s Question and Answer time!  Now, we answered a few questions in the last episode but realised that we wouldn’t be able to respond to all of your questions at this rate, so we will be doing a Facebook Live very soon. Stay tuned for that!

On another note, there’s an exciting announcement at the end of this episode so make sure you stick around. And here are the questions that we would be answering today:

 

  • Question on Guarantor Loan from Kate:

My partner and I earn a combined gross income of roughly $130,000 annually. We have a small amount of savings – about $5000 (remember we’re getting married). But really nowhere near the amount needed for a deposit on our first home. Listening to your episode about guarantors got me thinking. Is it possible to borrow the full amount for an invest-grade property in Newcastle? Do banks really loan 105% with interest only repayments so that we can continue putting money into an offset account? Or are we better to wait and rent and continue saving?

My parents have been lucky enough to own a home in Sydney that has enjoyed the crazy house price growth. Their home would be worth at least $1.5 million at the moment. How long would my parents need to be guarantors – would it be until we had saved 20% of the loan? Perhaps in our offset account? Or would it be until the full amount was paid down?

My dad is from the generation of debt is bad and avoids risks. If you thought this was a smart move, do you have any tips on how to explain the risk/benefits so that he can understand?

 

  • Question on “To Hold or Sell” from Warren: Hi ‘couchers’, thank you for your entertaining, informative, and thought-provoking podcasts. I’d like to know what your thoughts are on rescuing a situation where someone has an investment property they’ve had for 10 years that isn’t performing. Cut the losses and look to replace it, or hang onto it? (I bought this place at age 20 on apprentice wages, it was all I could afford) Thanks! (specifics: paid $195k, current market value $240k, current rent $270/wk)

 

  • Question on Property Investing in WA from Daniel:

My partner and I recently bought a duplex (2 bedrooms, 1 bathroom, 2 living rooms, 475 m2) in Spearwood for $400,000. We have $112,000 equity in the property and $73,000 cash in our offset. Our salaries are $50,000 p/a for my partner and $71,000 p/a for myself, and we do not plan to have children for another 5 years. There is an opportunity to buy the second duplex (also a 2 bedroom, 1 bathroom, with a small granny flat at the back) for $385,000. The site is zoned R40 on 950 m2 (we see a 4 property potential), 3 km from the new Port Coogee Marina, the North Coogee development estate and the potential South Fremantle Power Station development bringing 6,000 new high-density houses/apartments into the area. We are 300 m from the local shopping centre and 5 km from the satellite employment hub of Fremantle (Bryce’s old hood). It ticks all the lifestyle boxes bar being near a train station (it is currently challenging to access the freeway to the Perth CBD). My two part question is:

  1. I am currently weighing up the opportunity cost. What is your inference of Spearwood as a potential “wave rider” suburb piggy backing off the growth of the coastal development? Do you feel that it would have long-term, consistent capital growth or a short term upswing, followed by a flattening capital growth and thus be better to buy into a blue chip area?
  2. As a first time investor, would it be wise to buy the adjacent duplex and land bank the asset, then develop the land after we have acquired several more properties in our portfolio or focus on the subdivision straight off the bat?

 

  • Question on Joint Venture from Tristan:o

I am in a bit of a bind and require some help. I currently have 4 properties. PPOR, a house in country VIC (Nathalia) that my father rents, a house in Frankston (that’s had 10% growth in 5 months!) and the front house on a sub dived block in Seaford.

The last 2 properties were purchased with friends as tenants in common.

I wanted to try and get another property with just my wife and so (as my friend has changed his plans a bit) I spoke to a well-regarded mortgage broker and they told me that the banks have changed the rules and that now they take the full loan amounts of the split properties and only half the rent!?

This destroys my serviceability. I am now not sure what to do, my friend is moving interstate and will not be ready to buy again for 2 years. (which I think my turn into 5 years) and I am keen to keep purchasing.

Should I concentrate on paying down the debt on my PPOR (280k worth 750k) or look at selling one of the joint houses (to gain the serviceability)?

 

And here are Free Resources mentioned in today’s podcast:

 

 

If you like this Q&A episode (How does Guarantor Loan actually works, Fixing a Joint Venture, Investing in WA 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/

Episode 115 | What Does The 2017 Federal Budget Mean To The Property Market?

What a week! Apologies for the podcast’s downtown earlier this week and thank you to those of you who wrote in to us. We had a system update and things didn’t quite work out as we wanted them to be. That aside, the 2017 Federal Budget has been released just a couple of days ago. So let’s talk about that.

There were a few proposals relating to the affordability issue and a couple more that aims at the property investors pool. But overall, this was not an overly exciting budget. It was a conservative one. Nonetheless, what impact will if have on property owners and the Australian Property Market in general. Some of the issues that Bryce and Ben discussed in today’s episode are:

  • The proposed changes to depreciation deductions for plant and equipment
  • Capital Gains Tax exemption for foreign and temporary tax residents
  • Investors’ travel expenses claims
  • The implementation of First Home Super Saver Scheme and is it a good idea
  • The expanded audit on overseas investors

If you would like to understand more about the 2017 Federal Budget, please check out this link.

We’ve also answered a few questions from:

  • Joel on the First Home Super Saver Scheme: Hi property couch crew! Since the website is down ill throw my question for the next Q&A here. A good one of the younger generation first home buyers as well as parents. My question relates to the announcement of the first home buyers saving scheme announced in the budget, with the tax break through superannuation. Being someone who has been taught in uni and at home by my parents not to touch my super and add extra payments where possible, is this scheme of accessing it for a house deposit reasonable? I see the tax break being a great idea but opening the idea of people taking there super to buy a house they cant save for rings alarm bells for me. Do i have the correct understanding of it all? Would you recommend another way?
  • Leo on property valuation: Hi Ben & Bryce – (and the Stig!), I cannot thank you enough for the endless amount of value that you provide for your listeners. Your content is conversational and easy to understand even for a first-time investor like myself.
    I have a suggestion that may also benefit other listeners. I have recently purchased my first investment at 23 years old. It is an existing (3 bed, brick and tile) property and I am in the process of planning a cosmetic renovation. My question is – When refinancing against an existing asset, do all property valuers have a set agenda when valuing your property? Since all valuers will have a different opinion on price, is there a similar set of factors they look at? (i.e Condition of kitchen, bathroom, flooring etc) – going on from this, Is there ways you can make your property more appealing to a valuer in order to gain a higher valuation to leverage onto the next investment? Thanks alot guys – I appreciate your work!
  • Derek on bookkeeping for investors: Something that isn’t as widely discussed in the field of real estate is book keeping. You guys mention the need to spend 10 hours or so per year to review each property in a portfolio. Can you dive into greater detail as to what exactly this entails? What sort of information do we need to keep track of and is that done through spreadsheets or specific software?

 

If you like this episode (What Does The 2017 Federal Budget Mean To The Property Market?), 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/