debt reduction Archives - The Property Couch

355 | Zero Debt & $2,000 A Week In The Bank: HOW?!

By The Property Couch September 9, 2021 in Podcast

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How can property investors reach zero debt AND still hit a four-figure passive income each week?
And what do we mean when we say “retire” the debt, anyway? What does this look like and, importantly, WHEN should you start this process?

Folks, in today’s special Q&A episode we’re circling back to a few basic principles and fleshing out some confusion when it comes to property investing. This includes clearing air (and tidying up our language!) when it comes to being informed of the step-by-step investing process.

For one – you’ve no doubt heard us talk about achieving $2,000 in passive income… well, WHERE exactly does this money come from? Is it just your rental income?

As part of this we’ll also be covering “Failure to Launch” principles and “Investment Remorse” – the latter, which may actually be a more common feeling than you think! So what should you consider if you find yourself second guessing your asset selection?

PLUS, because we’re officially in Spring – this episode comes with a WARNING about this year’s “Spring Selling Season”… ‘cos there’s a critical shift taking place ALL home buyers need to be aware of.

Suss the exact questions we answer below – or, better yet, simply hit play and get the gold now 😊

Free Stuff Mentioned

The Questions We Answer

Question from Stevo on “Post Purchase Restlessness”
Hi guys 12 months after purchasing an investment property, I’m starting to get this feeling that it might not of been a great purchase and also restlessness about wanting to “go again” and am worried the growth might not be quick enough compared to capital cities. I say that based on an old episode where you mentioned something about the limitations or a price ceiling in certain areas based on the demographics.

Obviously being a regional property, which doesn’t have the same wage potential as capital cities, am I exposed to the idea that the growth has happened and it won’t come again?
The property is available via this link. It’s shown growth over the past 20 years in capital and rental return.

For reference the idea of “inner city” living (albeit in Mildura) has exploded recently and is the driver of the growth over the past five years. The council and state govt have invested to upgrade the riverfront (very close to the CBD) and has completed stage one. Stage two has started to attract funding and small upgrades/extensions have started. Data suggest Mildura will continue to grow in population albeit slower than Geelong and Bendigo for example, however, it is still positive growth compared to other regional towns this distance from capital cities (which are often stagnate or negative). Major industries – agriculture and tourism, health, Govt. Sorry for the long-winded question and info.

Also, is this a normal feeling people get (delayed remorse)?

Question from Ebony on “When is the best time to sell your investments?
Hello, I have a question around when is the best time to sell your investments? My husband and I are mid 30s and have two investment properties. Right now, in our town the property market is a sellers’ market and prices are crazy. Our accountant has recommended that we should seek advice from a financial advisor and possibly sell both investments because they are positively geared and that we would be better off building a new home as an investment or investing elsewhere. I am really unsure about this because I think that we already have 2 great investments, and we would be potentially paying more down the track for land should the market stay the same. However, we have had one property for 2 years and the other for 1 year and could look at earning $100K off the sale of each investment. I guess it’s hard to know if the market will stay at these prices or crash when interest rates rise. Really after some advice from someone who is knowledgeable about property investments. Thank you.

Question from Paul on Retiring Debt
Can you elaborate on what you mean when you talk about retiring your debt? I’m confused by what you mean by this.

Question from Chris on “$2,000 per week in passive income”
Hi Ben and Bryce, Love your work. 👍 I’m not sure if you’ve mentioned it before, and you probably have, but I would like to know where the $2,000 a week comes from? Is it pure rental income (taxed) above expenses for the portfolio or is it accessing equity against capital growth (is this now defunct with new lending criteria?) or is it a combination of both? Thanks in advance. This is a major thought blocking me from moving forward. 👍

Rest, Recovery & High-Performance Graphic

Here is the graphic Bryce was referring to in today’s Life Hack:

332 | New Laws To Sting Landlords! – Chat with Hayley Mitchell

By The Property Couch April 1, 2021 in Podcast

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Rental Reform is here. And with this comes quite the ‘sting’ for landlords. So we want to make sure our community – in particular those who already own an investment property and also folks who are considering an investment property now or in future – know what to do to prepare for these new laws.

Here’s the deal…

As of March 29^th 2021, there have been 132 rental rule changes here in Victoria. And while these laws have NOT (and perhaps won’t) make their way into other states and territories across the county, we recommend all our listeners to tune in to this episode.

Yes… these are Big Changes. And with them come consequences… BOTH to landlords AND tenants. Both Great and Not-So-Great…

At the end of the day… this is Brand New Policy and with that comes new learning and course-correcting along the way. With our advocacy work through PICA, we will continue to advocate for property investors and make sure our collective voice is heard. So, please know that what we are talking about today might not always be the case… and, for the record… we are fully on board with the safety precautions in place for our investment properties. What we struggle with is policy that is short-sighted and regulated down to the 5% of people who are doing the wrong thing.

Here to help us unpack this New Legislation is Hayley Mitchell, Director of Geelong Property Managers and Director and Trainer of Mitchell PT, which provides training and consulting in the property management industry. She is a fully licensed Real Estate Agent and has worked in property management since 1999… and she knows her stuff when it comes to legislation change & how to best prepare landlords for New Policy!

Yep. We spoke with Hayley WAY back in Episode 249 when these proposed changes were on the horizon… but now that they are HERE, what do us property investors need to know???

And, most critically, Are these Rental Rules as “Fair” as they appear to be?

Listen now to find out – VERY important episode folks!

A Key Message to those who have invested or are looking to invest in Victoria…

Yes – we’re not super happy about all of these new laws, either! But please remember the fundamentals and what attracts people to this State (and hence increases the demand for property!) – we are playing The Long Game here. What might “sting” a bit now needs to be put into context of a 20/30/40-year decision. So, Keep Calm, do your numbers and reach out to your property manager on the best way to navigate these changes.

Free Stuff Mentioned

What’s Covered In The Episode….

02:05 – Start & Build Winners!
03:57 – How to get LocationScore for less!
05:12 – April Fools Pranks!
06:32 – How to spur people on to success
09:05 – Meet Hayley…
10:05 – What was life like as a property manager during COVID-19?
12:34 – They DONT have a copy of the written legislation yet!?!
14:43 – What are the most significant changes?
15:26 – Who is going pay for these changes?
16:16 – What is going to happen to rents as a result?
17:40 – What will happen tenants after lower-priced rents??
19:02 – What changes “snuck” through?
20:30 – New Rental Minimum Standards
21:15 – What are the new ventilation requirements?
25:25 – Unintended consequences of the new electrical standards
27:09 – You have to PAY for the codes to access the minimum standards!
28:26 – Our new name as landlords…
29:00 – How will it change you way you buy property?
30:29 – Will there be a pivot where the vendor needs to make sure these standards are met (as opposed to the buyer)
33:47 – New disclosure requirements
35:11 – What happens to properties that are rented after 29^th March?
36:38 – What’s going to happen to the line at VCAT!?!
38:56 – New Urgent Repairs
41:15 – Pest “Infestations”
42:47 – Ben’s story about the tenant and the “ants”
44:15 – Compensation for Sales Inspections
48:36 – Painting!
49:55 – When the website and the legislation don’t match up…
51:51 – The 120 day Rule (Ouch!)
56:50 – Hayley’s Two Worst Changes!
57:17 – What will these changes mean for the industry?
58:35 – The Five Strike Policy!

And…

1:01:11 – Message for landlords
1:07:29 – “Not Happy Jan!!”
1:08:13 – Our Key Message for our Victorian Landlords
1:13:15 – Ben’s Lifestyle Design Update!
1:13:37 – Auction results from the weekend

331 | What Is Your Money Personality? – Chat with Effie Zahos

By The Property Couch March 25, 2021 in Podcast

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Did you know we all have a distinct “Money Personality”??

Yep – we do! And in this episode, we’re giving you the complete lowdown so you can identify which one is YOUR personality (and what it says about your money habits!), as well as practical tips to improve your bank balance, make your Super work harder and build a nestegg for your retirement that won’t cost you “an arm and a leg” to set up!

Folks, joining us today is our good friend and one of Australia’s leading personal finance commentators, Effie Zahos! Effie is Canstar’s Editor-at-Large and has more than two decades’ experience helping Aussies make the most of their money. As the money expert for The Today Show, Effie offers her insights into current money matters and – get this! – prior to joining Canstar, Effie was the editor of Money magazine for more than 20 years. (… Anyone remember our interview from the legend Paul Clitheroe!?! Well, Effie worked right alongside him… so you can bet on the fact she knows her stuff!)

We cover a lot of ground in this ep, like… the psychology of money, the best way to tackle debt and simple (but effective) money hacks to get your money working harder. You can see exactly what we cover further below.

EVEN BETTER, Effie gives us some exclusive insights from her new book, “Ditch the Debt and Get Rich” that’ll have you on track to earning a passive income & tweaking your spending habits like a pro!

So. Which Money Personality are you!?! Well, let’s find out….

Psst… bonus points up for grabs if you can guess Ben’s money personality! 🤣

Effie’s Books

Free Stuff Mentioned

Here’s What We Cover….

01:50 – Who won our Start & Build giveaway this week!?! (a few more weeks to go!)
04:06 – Mindset Minute!
06:28 – Meet Effie Zahos…
08:03 – Effie’s WORST Fear!
10:57 – The day Bryce met Effie…
12:56 – How to Retire on $2,000 a Week (how it started…!)
13:58 – How to Ditch the Debt and Get Rich!
15:00 – WHY are so many of us “bad” with money?
16:19 – Reasons people derail from their financial goals
17:17 – Triggers companies use to make you spend more money!
18:19 – The $10,000 Online Shopping Cart….!
19:51 – How to bring the future into the present so you can make lasting change
20:30 – Latest Data on investment trends!
22:33 – Why do you need to go BACKWARDS to go FORWARDS?
23:52 – The #1 tip to “get the monkey off your back”!
24:12 – Debt Avalanche vs Debt Snowball
25:45 – Where do people get into financial trouble?
27:13 – What Is YOUR Money Personality?
27:32 – How to model the most successful investors…
29:27 – The overlooked difference between SPENDING and INVESTING!
30:12 – The 48-Hour Rule
32:02 – The 2 Critical Things to put “side by side” to curb your spending
33:08 – Generational Differences with Money Strategies
35:29 – Do this immediately with your super!
37:05 – Why “Balance is B.S” with wealth creation!
39:12 – Why is writing your goals down so important?
39:45 – Effie’s 3 Financial Goals This Year!
40:43 – The “Coke bottle trick” that makes you money!
42:02 – Why money makes money…
43:26 – Investing in shares!
44:52 – How much do you need to invest!?!
45:35 – Understanding the psychology of wealth creation!
47:08 – Buy now and pay LMI… or wait ‘til you have a deposit?
49:37 – Pay off your mortgage or invest?
54:36 – A key tip about Debt Avalanche…
58:44 – Do you have this in YOUR car???

And…

1:00:29 – What’s making property news?

199 | Q & A – Future Proofing your Portfolio in a Changing Market

By The Property Couch November 22, 2018 in Podcast, Q&A

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Folks, with State Election around the corner and the Federal Election less than a year away, it’s time to future-proof your portfolio.

The market has changed and will continue to change. We’ve also got some challenges in the Macro landscape as well — lending regulations, potential changes to negative gearing and interest rate rises, just to name a few.

So you might be asking yourself, “How is it still possible to build a property portfolio and earn $2K per week in passive income with all of this other stuff happening?”

And you’ve got a good point. There IS a reason to be concerned, but this does NOT mean you have to abandon ship altogether. Far from it.

So in today’s episode — before our Surprise Superstar Guest joins us next week for our 200^TH EPISODE!! — we’re going to answer some of your questions about how to do exactly this.

This is just a few of the things we’re discussing:

The right time to buy in a changing market
How should one approach 2019?
Picking the bottom of the market (and if this is actually possible!)
Strategies to increase your cash flow
The house price drop
Releasing equity
Starting with ZERO equity
The future of the property market

Before we get to the questions, Ben is coming to all of you who are based in Perth! As the Chair of PICA of course. Details below:

When: 6:30 pm – 9:00 pm AWST, Tuesday, 4 December 2018
Where: Queens Building, Lecture Room, Level 1, 97 William Street, Perth, WA
Cost: FREE!

Link to secure your ticket: Reserve your Seat here

And if you’re after the video that Bryce mentions in today’s show to Know Your Number… Watch it below or click here to watch it now.

Finally, the questions we’re answering today…

Question from Mirella:

When talking about earning $2,000 per week in passive income is this measured before or after outgoings; eg. rates, land tax, etc.?

Question from James:

Trying to build a portfolio whilst the future of interest rates and a change in government and a change to negative gearing could potentially impact the market. How should one approach 2019?

Question about market sentiment/right time to buy from Kirthika:

Thanks for this session guys! Quick Q… there’s a lot of media activity discussing the impending drop in property prices over the next few years. As a result, my husband and I are worried about investing now? in the event we could buy for cheaper in a year! What are your thoughts?

Question about increasing cash flow and paying off debt from Nipper:

I feel confident with how to select investment grade properties. But I’m not so sure on how to hold them then get to the cashflow stage. Do you propose changing loans to P&I or selling down some properties to then pay off the debt of others, or something else?

Question about having no equity from Dan:

You mention using equity. If you don’t yet have access to equity… do you have any tips to get started?

Question about realising equity for cash flow purposes from Kosta

Do you ever recommend using some equity release to pay the monthly repayments to improve cash-flow?

082 | Q&A – Great tenants vs higher rents, Investing in property overseas, Managing leverage and more

By The Property Couch September 22, 2016 in Podcast, Q&A, Real life stories

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It has been 3 weeks since our last Question and Answers episode, so it’s about time for another one! Thank you again for sending in your questions.

For today’s podcast, we will be answering these questions:

Question on tenants vs rents from Mark: Is it better to keep a great tenant on a lower rental, than push for a great rental return and gamble with the quality of new tenants (and subsequent vacancy in between.)

Question on exit strategy from Tom: Hi, I would like to hear more about exit strategies when time is not on my side. I have just turned 50, with my youngest child in yr 12 and eldest living in eastern states. My principal place of residence (PPOR) is paid off (value $1.1M) and I have 2 investment properties with a combined value of $1m. But an investment loan of $1.2m. The reason for the negative Equity is that I have been capitalising. The investment interest whilst I directed all rental income into paying off my PPOR. So now I need to know what is next. My goal is to retire or work reduced hours in and on a corporate role by age 55. I am presently in a well-paid job paying about $220k and have about $270k in super, which I am contributing up to the max.$35k pa. I can’t get my headspace around what to do next. any suggestions would be appreciated.

Question on investing in property overseas from Sean: Would be great to hear your thoughts about investing in property overseas as part of a portfolio, particularly NZ. There’s some “wave rider” type activity gaining momentum around Auckland, which has become a heated market it seems.

Question on career in property investing:Hi Ben & Bryce, Firstly I would like to say you guys are doing an awesome job with the podcast. Have been listening from the start and as a born and bread Victorian now living in NSW I love the footy talk!!!!I would also like to congratulate you on your book “The Armchair Guide to Property Investing“. I will be handing it out to numerous friends and family as I believe it is gold when starting out and not knowing which direction to go.So some background on my situation. I started educating myself 2 years ago with every property podcasts/book I could find and now believe I have the foundations for property investing going forward with the right team around me (coach, broker, accountant, solicitor & acquisitions team).We moved to the Hunter Valley to set ourselves up to give us more “choices” in the future. I am currently on a high income of $140k as a coal miner but to be honest, my heart isn’t in it anymore and I don’t enjoy my work (except the pay each fortnight).The reason for reaching out to you guys is because we currently have a 3 year plan (possibly shorter) to move back to the Geelong area to be closer to our family and also closer to Melbourne because we live and breathe AFL. By then we plan to have 2-3 good capital growth properties in our portfolio in major cities utilising the high income (currently in process of acquiring property in Brisbane as I write this email).By the end of 2016 my goal is to complete a Diploma of Finance and Mortgage Broking Management because I believe that everything revolves around finance in creating wealth through property. I am also working towards 1-2 weeks work experience with my property acquisitions team to see how everything operates on the ground.
My question to you guys is what else would you recommend I do over the next few years in preparation to help transition into the property investing line of work (educating others to create wealth or something down that path).

Question on paying down debt or invest from Ian: Good afternoon gents, thank you for sharing your wisdom. I’m 40/67 episodes so far and still loving the insight. A question for your podcast: Getting rid of debt 1st vs investing 1st: As a health practitioner with approximately 5K of discretionary income/month would you recommend chipping away at approximately $35K of bad debt mixed between high and low interest accounts and then seeking professional aid such as yours to become a 1st time rentvestor or seek out assistance and attempt to send that bad debit into some sort of mortgage? Love your work and your banter.

Question on Property Investment Advisor or Buyers Agent first from Paul: Hey Guys, Love the podcasts and your book. Great help for us newbs. I have just started my journey into the world of property investing. After listening to you guys plus reading your book I have taken my first step and started meeting with mortgage brokers to get an understanding of where I stand financially. One of the brokers I meet with was from your team at Empower Wealth. He was great and very professional. My question to you guys is once I have my finances ready to go do I need to be looking to meet with a property adviser or a buyers agent next? Your advice on this would be great. Keep up the great work!

If you like this Q&A episode (Good tenants vs higher rents, Investing in property overseas, Managing leverage 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/

Free Stuff Mentioned

The Questions We Answer

Rest, Recovery & High-Performance Graphic

A Key Message to those who have invested or are looking to invest in Victoria…

Free Stuff Mentioned

What’s Covered In The Episode….

Effie’s Books

Free Stuff Mentioned

Here’s What We Cover….

Finally, the questions we’re answering today…

Instagram

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