P.S You can also listen to Episode 275:β―7 Grades of Financial Wellbeing β Which one are you? for more.
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P.S You can also listen to Episode 275:β―7 Grades of Financial Wellbeing β Which one are you? for more.
By The Property Couch in Podcast
As Christmas is a time for giving, we thought todayβs special Christmas episode should be none other than a Q&A session!Β Topics covered today include debt-retirement and refinancing loans, how to go about upgrading your PPOR (Principle Place of Residence), whether itβs 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:
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.
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 agentβs fees but I can’t see the value in planners for myself.
If you like this Q&A episode (Investing in a Financial Planner, Upgrading your PPOR, Loan Strategy to Build your Portfolio and moreΒ ), 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/
For today’s podcast, we have Stuart Wemyss, owner and Director ofΒ ProSolution Private Clients joining us to talk about his property investment journey and his investing philosophies. Coming from an Accounting and Finance background and with more than 19 years of experience in the investment services, Stuart is also a PIPA Member and hasΒ authored two books; Smart Borrower’s Handbook and The Property Puzzle.
So for today’s episode, the three of them will be talking about:
[alert]Don’t forget to download the Property Investor Sentiment Survey 2016 Report! – Download here[/alert]
And if you are interested to learn more about Stuart’s books, here are some reference points:
If you like this podcast: “Does Investing for the long term actually matter? – Chat with Stuart Wemyss”, 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://tpcaustralia.wpengine.com/topics/
By The Property Couch in Podcast, Property Investment, Property Investment Formula
Folks, itβs scary to watch investors pour bucketloads of time and money into budgeting and buying a property, to then not invest in any protection!Β Β
This is exactly why weβre homing in on the fourth and final part of our ABCD Property Investment Formula series: Defence!
Previously, we’ve spoken about Cash Flow Management, Borrowing Power and Asset Selection. If Asset Selection is the favourite of the Four Pillars, then Defence is definitely the least favourite. Most investors are always on the lookout for new investments or new ventures to go into, but the most important asset is actually the investor themselves.
That’s why we’re looking at…Β
π‘ HOW to minimise risk across Asset Selection, Borrowing Power and Cash Flow Management…Β
π‘ WHO you shouldnβt be taking advice from…. (Hint: Ben and Bryce are declared enemies of these types of advisors π)Β Β
π‘ WHY you should be investing in certain policies and mortgage brokers…Β
And why mining towns arenβt the ideal investment – especially if itβs your first property!Β Β
So donβt end up like some of the people that Ben references in todayβs podcast, or spend years investing to be blindsided by weak defence…Β
Tune in and get smart with our final pillar in the Property Investment Formula!Β Β
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Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and weβll email it to you right away.Β
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