Episode 096 | Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)

Joining us on our first online recording today is Prue Muirhead! Prue is the co-founder of Muirhead Property Management, the 2010 Property Investor of the Year, teaches property investment and property management at TAFE Adelaide and an active investor with 18 positively geared properties under her belt. So in today’s episode, Bryce and Ben will be chatting with her about how she build her positively geared property portfolio and:

  • Her journey as a sophisticated property investor, the hurdles she faced along the way and how she overcame that
  • Understanding different risk profiles and property investing risks when building a portfolio
  • The lending challenges faced by a self-employed and how she used the equity in her current home to build up her portfolio
  • What’s her investment strategy and her definition of manufactured property growth
  • The importance of continuous learning, research and taking initiatives to an active investor
  • Self-management versus using a property manager
  • Potential for upgrades and renovations from a property manager perspective
  • The mindset and preparations required for property developments
  • Mistakes made along the way and her top tips for other property investors

 

If you like this podcast: “Building a Positively Geared Property Portfolio – Chat with Prue Muirhead, Property Investor of The Year (2010)”, 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/.

 

 

 

Bonusisode – A Boxing Day Chat Between The Property Couch and Smart Property Investment Show

SURPRISE! On this Boxing Day, we are having a joint podcast with Phil Tarrant from Smart Property Investment Show! Phil joined us back in Episode 52 talking about his journey as a property investor but in this Bonusisode (Bonus Episode), the focus will be on investing in property in 2017! Ben and Phil will be chatting about:

  • The health of the Australian Property Market in 2017
  • Understanding the different market cycles and how economic activities and infrastructure development may change the market’s trajection
  • How to filter out all the noise regarding property investing and look at hard facts when making an investment decision
  • The prospects and returns from investing in apartments and city fringe location
  • What are their thoughts on the lenders’ out-of-cycle rate rise
  • What are the criteria lenders are looking for in an ideal borrower
  • The importance of borderless investing and buying counter cyclical when building out your portfolio

 

If you like this podcast: “Bonusisode – A Boxing Day Chat Between The Property Couch and Smart Property Investment Show”, 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 088 | Q&A – Investing in Newly Developed Areas, Getting into the Property Market, Career as a Buyers Agent and more

Last week’s podcast had been quite an interesting one! We strongly recommend you to listen to it twice to make sure you don’t miss out on Dr Andrew Wilson’s outlook on the Australian Property Market. This week, we are going back to Question and Answer episode and Bryce Holdaway and Ben Kingsley will be discussing:

 

  • Question on a career as a property professional from Hayden: To the Property Couch, I have a couple of career questions to ask but firstly I just wanted to share my investment story so far and why I think what you are doing is so important. If I had your advice earlier, my circumstances would be much different. I am currently 25 years old; I began my investment journey when I was 17. My father suggested using the money I had saved for a car to use it instead to buy a house. This was in 2008 when the Rudd government was handing out the huge first home owner grants, when I had my first meeting with a mortgage broker (not even knowing what a group certificate was) they were suggesting I buy an off the plan unit. So put signed up for one in Frankston, Victoria from a company thinking they were giving me good property advice. This purchase eventually fell through due to the bank evaluation not coming through at the correct price. Then I signed up for another off the plan unit in Langwarrin, and after two years they had not even begun construction because the council was saying there was endangered fish in the creek near by. So I pulled out of that one and tried to purchase one in Carrum Downs 6 months later and this one fell through because the bank wanted 20% of the loan. Friends and family were telling me to give up by this point because of how upset I was getting, but I stuck with it and purchased one in Langwarrin. This time, a 2 bed 1 bath unit. This then turned out to be a very poorly built unit and eventually I received an insurance claim of $20,000 to fix the poorly built unit. After 4 years, this property has not delivered any growth at all and doesn’t look to in the near future either. Then I purchased a 1 bed 1 study 1 bath unit in a high rise in Ipswich, Queensland and this property has a lift, pool, spa, sauna, underground car park and a concierge.Even though I have made nearly every mistake you could make and still haven’t made a cent off property, I’m still obsessed with it and read and listen to every book and podcast and attended any event I can. I want to work in the industry to try to prevent this from happening to someone else but I’m not too sure what exactly I want to do. I was wondering if you would share some in-depth insights into mortgage broking and being a buyers agent. As much detail as you could would be helpful such as their daily tasks;
    (A) The pros and cons to each and how much they get paid?
    (B) And your thoughts on mortgage broking franchises or are you better starting off on your own?
  • Question on new developments from Brad: I realise that you guys are biased towards investing in established homes, usually with a short disclaimer on how you may have invested in new developments at some stage in your lives. In the interest of a more balanced argument, I feel it would be beneficial to offer someone in the industry who focuses on investing in new developments the chance to put their views forward. Just as there are good and bad established homes the same rings true for new or off the plan developments.
  • Question on next step in property investing from Damien: Love the podcast, learning so much each episode, feels like I’m completing a degree for free so thank you so much.
    I recently purchased my first property under market value (purchase price $420k, my banks value $540k) 3-bed townhouse on 452m2 in Kenmore, Brisbane. I had to use LMI ($18,000) due to only 5% deposit which basically brought my loan up to $420k. I want to continue to accumulate good properties. My financial decisions i.e lifestyle was poor in the past but over the last year I have turn that on its head. I have $20k in cash now and I’m wondering what would be your advice for my next move. I’m making sacrifices to get ahead. I live in the townhouse with 2 tenants getting 360 a week for cash flow. I have an interest in renovation also and I’m looking in the Ipswich area. Should I hold off or move again swiftly?
    Thank you for your help.
    Go the Lions 🙁
  • Question on cash flow from Ben: Hi guys, love the podcasts! I stumbled across one of your podcasts when I was searching for investor information and enjoyed it so much that I went back to the beginning and listened to every single one in the space of about 3 weeks! I’m 21 and working part time whilst also studying. I am planning and on track to have a 20% deposit on a 400k house saved up in the next 12 months. However, due to the nature of my work (personal trainer) my weekly pay can drastically vary (anywhere between $300 and $900 per week, with an average yearly earnings of around $25,000) and the fact that I will still be studying and unable to work full time to increase cash flow for the next few years, I visage that I would have next to no chance of being successful in getting a loan to match my deposit. I want to do whatever I can to get into the property market as soon as possible, but considering my circumstances and my end goal (early retirement on 100k+ per year) is there anything that I can do to get into the market sooner rather than later without substantially increasing my cash flow? Or should I just keep saving and wait it out until I have the cash flow to match my deposit?
  • Question on investing in newly developed areas or established suburbs from Stephen: Would you be better to build in an area with established housing nearing the end of its development life where you know the quality of the area. Or in a new development with no housing as yet but a big blueprint for long-term development? Would you get a bigger capital gain in the new area over time vs potentially small capital gain in established as the capital gain has already expired?

 

If you like this Q&A episode (Investing in Newly Developed Areas, Getting into the Property Market, Career as a Buyers Agent 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 066 | Winter is coming and the air will be colder up high

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://www.thepropertycouch.com.au/topics/