Back in Episode 102, Bryce and Ben discussed if we are facing an affordability issue and when Jan Somers appeared on our show last month, she mentioned that her aunt was also concerned about housing affordability back in the 1950s. Now, with the Federal Budget just a couple of months away, this topic appears yet again, and it seems to be the favourite amongst our politicians.
This time, the debate is about improving affordability for first home buyers. Now, don’t get us wrong. The Property Couch believes in the Great Australian Dream and owning your home. But as mentioned before, your first home will not be luxurious nor will it tick all the criteria of your dream home. This is about setting the right expectation because you would get to your dream home, and you would be able to get that quarter acre house eventually. But it will not happen overnight. You need to work for it, and you need to be smart with your decisions especially when it comes to money and planning for the future. Your first home, may not be your dream home but this does not mean that your second or third home wouldn’t be.
That is why education around property and awareness on the risk of investing in property is so important. This is one of the suggestions that Bryce and Ben chat about to improve affordability in the Australian Property Market. Tune in to find out the rest.
And the other stuff mentioned in this episode are:
Has the Way We Look at Financial Stability Changed Since the Global Financial Crisis? – Speech by Michelle Bullock, Assistant Governor (Financial System) of RBA: Listen/Read Here
Our second Live Podcast Recording at the Melbourne Property Buyer Expo last weekend was with Effie Zahos! With more than 20 years in the finance and journalism industry, Effie started as a graduate trainee for Westpac and then moved on to being the head researcher for Channel Nine’s successful Money program in 1997. She has been the editor of Money Magazine since 1999 as well as the magazine’s banking specialist, a regular finance commentator on TV and radio, and the author of The Great $20 Adventure and Getting Rich, Staying Rich!
So for today’s episode, the three of them will be talking about:
How did she start in the finance and journalism industry
Being the editor of Money Magazine, working with top economists and industry experts and investors’ success and horror stories she’s come across over the years
Having a mentor and how it helps in her career
The Top 4 Money Magazine Cover Story and the changes in readers’ interest when it comes to building wealth
Building wealth through superannuation and why you should take an interest in it at an earlier age
In today’s podcast, a much-anticipated topic features. But first, Bryce and Ben discuss the recently released GDP numbers for the September quarter. With a fall of 0.5%, what does this mean to us Australians? How will business confidence and the Australian Property Market be affected? And more importantly, is this a really bad thing?
After discussions on the GDP as well as further mentions of our 100th episode (that’s coming up very soon!), today’s main topic – as stated in the title, is: “How to Negotiate to Win”. Not all of us are used to or are comfortable in negotiating as it can be quite confrontational. But Bryce and Ben do it on a daily basis so today, they’ve decided to dish out some of their most useful pointers and success stories to help you on your next purchase! Not only do they let us in on some of the most helpful tips, they also tell us what to look out for and common mistakes not to make. With one of Australia’s leading Buyers Agents opening up about the secrets of negotiating, this is definitely an episode to tune into.
After two weeks of Donald Trump-related episode, we think it’s time to get back to our listeners and answer some questions! But before that, Bryce and Ben kickstarted today’s episode with a quick update on interest rates and which directions we might be heading to in the next few months. And for today’s episode, they will be answering questions from:
Cody on First home buyers – I recently listened to episode 87. Listening to the content of first home buyers not being able to get into the market unless prices fell 30%. What is your moral standing on this? Are you okay with our kids getting locked out? Do you consider yourselves and like-minded people responsible for aiding in driving competition and prices? Do you think there should be any assistant to our kids from a government policy standpoint to own their homes? Look forward to hearing your thoughts.
Tom on Overseas Investing – Hi guys, just listened to the latest podcast…thanks for the shout out to London, where I have just moved to from Australia. I have 2 IPs in Inner West Sydney and thinking I will be sitting on them to let them grow for a few years until I get back…London property is just ridiculously unaffordable! Would be interested in your thoughts on investing in overseas properties in countries such as NZ or the UK, from Australia, or vice versa and the process involved to purchase and manage. Enjoy what you guys are doing, and I think it’s the best podcast on IP in Australia. Thanks, Tom.
Steve on Overseas Investing – Hi Guys, loving the podcast. In footy terms, you’re both ‘up and about.’ Question for Podcast: Investing in Property Overseas. You talk of ‘borderless investing‘, but that’s only Australia. Is it a bit un-diversified to put all one’s eggs in the ‘Australian Property Market’, just like a Pommy would be putting all of theirs in the UK market, or a Yankee putting them all in the U.S of A? You guys have read Kiyosaki, you must have dreamed of following the world’s market cycles like a real ‘world’ investor. My question is ‘Where can Aussies buy overseas?’ I know an Aussie buyers agent buying in the US for clients at the moment, and you hear of the Chinese buying here. Why aren’t we buying China? Thanks, Boys!
Brett on Setting up an Offset Account – Hi guys, love the podcast, after meeting with a very respected investment mortgage broker, they suggested switching my PPR loan to interest only to help build savings for an investment deposit in an offset account. I couldn’t work out why this would be better than putting my money into the PPR loan to increase equity then drawing it out when there is enough. The money I draw out would be tax deductible on the interest, whereas the money I save in an offset, if I draw this out for an investment, this would keep my PPR loan higher and thus not tax deductible on the interest. Can you guys please discuss this as I am starting to lose respect for this particular broker. Thanks
Nicole on Canberra as the next Investment Spot – Hi guys. Love the show particularly being a Victorian, I love the sports chat at the start 🙂 However, I am now in Canberra and would love it if you could incorporate a bit more of our ‘different’ city into your commentary. It does not fit the usual capital city, but it is nonetheless. Also, can you tell me where you got Bernard Salt’s population predictions? I would love to see them in more detail. Many thanks and I look forward to the next show.
Question 6 from Kieran on whether it’s ever too late to invest – Hi guys, I’m loving the wealth of knowledge you guys put out each week. As a 31-year-old who never really considered what I could be doing now to build for their future it is inspiring to see how accumulative action over time can have such a great impact and how accessible it is to anyone with the right knowledge, advisors and drive to succeed.
My wife and I recently met with your team at Empower Wealth and are now on savings track to secure our first investment property. Bring on the Rentvesting! My question, however, is related to my parent’s situation. I am wondering if it is every too late to help fund your retirement?
My parents are 63 and while they have worked hard all their life, they’ve had a couple of investments turn bad which has them worried about how they will fund their retirement. They currently pay P+I monthly with approx $220k left to pay off on a property valued at approx $550K. As I understand it, they have calculated that if they work for another 5 years they will be able to pay off the balance of their PPR using the superannuation they have accumulated. That will leave them with the house owned outright but only the pension to live on.
I am sure there any many approaching retirements and facing the prospect of having to keep working longer than they hoped or unsure what kind of lifestyle they will have when the do retire. What options are there for someone in their position when it becomes harder to get approved for a mortgage due to their age? Is it ever too late to get involved in property investing to create a passive income?
If you were at the Sydney Property Buyer Expo last weekend, you probably listened to this episode already but for those of you who weren’t there, Bryce Holdaway and Ben Kingsley recorded a LIVE Podcast with Dr Andrew Wilson on the Future of the Australian Property Market! Dr Andrew Wilson is the Chief Economist for the Domain Group and is an appointed housing market expert and adviser to the Federal Government funded, Australian Urban Research Infrastructure Network. He holds a PhD and Masters by Research in Housing Market Economics and has previously held senior property and construction research positions within industry, academia and government.
So for today’s episode, the three of them will be talking about:
Why is he so optimistic about the Australian Property Market?
With Sydney and Melbourne experiencing double-digit growth in recent years, are there any trend or changes to investing in residential property?
How long with Sydney and Melbourne’s property market continue to grow at the current rate?
What is the level of investors’ activity in Melbourne and Sydney and how will this affect these cities in the future?
Is there a housing under-supply issue in the Sydney metropolitan area?
What is the outlook on other states such as Perth, Brisbane and Darwin?
How will the demographic in metropolitan areas changes and the ratio between tenants and owner occupiers
As mentioned in the podcast, if you would like a copy of Dr Andrew Wilson’s slides (Australian housing markets report; Sydney back to the boom – The rise and rise of investor), just fill in the form below and we’ll send it directly to your email: