The Property Couch | The Insider's Guide to Property Investing

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: * Here’s our video and article on realestate.com.au – Click here to watch How to use Flour Jar Method of Saving for a House * BMT Tax Depreciation Application Form – Download her     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/

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: * 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,

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...

Following on from Part One, the second part with Brad Teal focused on Victoria’s new underquoting laws that came into effect on the 1st May 2017. For those new to the real estate industry, underquoting as defined by the Consumer Affairs of Victoria is: Underquoting can occur when a property is advertised at a price that is less than the estimated selling price, the seller’s asking price, or at a price already rejected by the seller. You can learn more about this new regulation here. So for this part, the three of them discussed: * How was this new underquoting law introduced and the logic behind it * What changes will the new regulation impose on the real estate industry and will it be introduced to the other states * Traits of a good selling agent and the research that a vendor can conduct * The different demands on certain property type in different market * What does he think about the buy and hold strategy * What success mean to him   ps: And if you are interested in Ben’s “Did You Know” Facts, click here. If you like this podcast: “How One Punch Turned Into A Property Empire – Chat with Brad Teal, Director of Brad Teal Real Estate”, 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/

The last episode of our Elite Agent Series is with Brad Teal, Director and Founder of Brad Teal Real Estate! Born and raised in Melbourne’s north-west coupled with more than 40 years of experience in the real estate industry, Brad’s understanding of the real estate market, property trends in the area and local facilities and amenities is second to none. And how did he build up his property empire? It all started with a punch in the face! Find out more on today’s podcast. For the first part of this episode, Bryce, Ben and Brad also chat about: * How Melbourne’s north-west has changed over the years and the gentrification that had happened * What are considered as investment grade assets and why he’s interested in ‘bullet-proof’ properties * Setting the right expectation on rental returns and tips to increase yield * Is there any investment potential in one bedroom apartments? * New vs old apartments and the impact of high-density development on the suburbs * Mistakes buyers make at auction * Transparency in the buying process * Understanding the auction system   If you like this podcast: “How One Punch Turned Into A Property Empire – Chat with Brad Teal, Director of Brad Teal Real Estate”, 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/

Another exciting episode of the podcast this week! Joining Bryce and Ben on the couch is a certified practitioner of Neuro-Linguistic Programming, Public Speaker, and author of The Ultimate Book of Influence and Useful Belief, Chris Helder. After moving to Melbourne 21 years ago from the USA, Chris has become one of Australia’s leading keynote speakers who explains mastering the power of the mindset. With this in mind, Bryce, Ben and Chris provide some absolute gold nuggets in this episode by discussing some of the following areas: * Chris’ professional background and what led him to Australia * His book, Useful Belief and how effective this concept is * How to apply the concept of Useful Belief in the current property market * Does an ideal week really works and a more efficient time management skill * The idea of ‘10 Seconds of Guilt then move on’ * How to filter the distraction and noises out there * Mastering and owning your own story * Understanding perfection and not letting it take over * What we need to do to take action and stop avoiding what we need to do * Seven ways to successfully implement Useful Belief Make sure you tune into this episode to find out the above and more. An advice packed episode not to be missed! And if you would like to get a copy of his book, Useful Belief, get a copy here! If you like this podcast: “Why Positive Thinking Doesn’t Work! – Chat with Chris Helder”, 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/

Carrying on with our real estate agent season, today we have another special guest star Tim Heavyside on the show with Bryce and Ben. An award winning Real Estate Agent, Director and Auctioneer for Fletchers Real Estate, Tim has an impressive professional history in this industry dating back 15 years. As a very knowledgeable and personable star on the show, there is no doubt that you will receive some interesting advice and will be listening to some absolute gold in today’s episode. In this episode Bryce, Ben and Tim talk about the following topics: * Tim’s professional background and how he moved on from being a travel agent to Real Estate * What motivated him to excel in the industry and his motto in life * The skills and traits a vendor should look for when engaging a real estate agent * What are the four different scenarios when selling your property * Pre-auction offer and which is the best week (or which day of the week!) to offer them * Behavioural techniques to employ when buying at an auction * The best property advice he’s been given * The best property deal he made and why   If you like this podcast: “Inside The Mind Of An Elite Agent – Chat with Tim Heavyside, Director of Fletchers”, 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/

Can’t believe it has been 11 weeks since our last Q&A! We’ve got quite a line-up of great guests on the show for the past couple of months so for today’s podcast, we will be doing a Q&A instead. Thanks for sending in your question and Bryce and Ben will be answering questions from:   * Bernard on Borderless Investing: I love your show; it’s really given me a different perspective from some other property educators, and it’s one of these differences which gives rise to the following issue. You speak a lot about being a borderless investor and buying quality assets in those locations where the market is in the right stage of the cycle. At the moment, this might mean Brisbane or Hobart or Adelaide or wherever. That’s all good. You are also clear that Sydney and Melbourne are the places which will grow most long term. That’s all good too. If I’m only going to buy 4-5 properties to secure my retirement though, as you advocate in your book, I certainly want to be buying the best long-term performers that I can. I know that done well, I can make good money doing this in smaller markets, but long term I wouldn’t expect to do as well as in the larger metropolises. If I was buying ten houses, I could carry some weaker assets, but with four it’s obviously vital to get them right. How would you advise someone who already owned a couple of (hopefully!) well-selected properties in Brisbane or Adelaide or wherever who was able to re-invest? Should they hold off, build up a bit of equity and increase their cash buffer before looking at Sydney or Melbourne when the heat has come off there? Or would you suggest buying again and taking the risk that they will never get into the larger markets? * Alisdair on Loan Redraw Facilities: Can we have a finance expert tax expert come on the podcast? I have a loan where I have paid in extra to the redraw, not offset. I had a strategy to break the loan and refix for a few reasons. The rate is significantly lower. I’m hoping I can claim the break fees as a cost, reducing their effect. Also I want to pay my interest out of the redraw. Can this be done? I feel the break fees are permitted, but the part where I pay interest from the redraw seems an impossible dream due to a mixed purpose loan affect and that the ATO considers it tax avoidance. Any guidance in this matter? * Lakhwinder on Location Research: I have been listening to your podcasts while driving, thank you so much for such a priceless info you share with us. I recently started my property investment journey bought new house in Western Sydney to get government benefits and bought two investment properties in Loganlea after rezoning, after listening to your podcasts I realised I didn’t apply most of the filters you guys talked about. Both my properties are over the median price of suburb. Both are over 6% yield so not that painful to hold. First investment property 3bed 2 bath 2 living areas 800msq with pool for $400k. Second 4beds 2baths 800msqr $380k. Westen Sydney property (owner occupier)did great, bought in end of 2014 By June 2016 property revalued at $150k more without landscaping done.I know you guys talked about Brisbane few times but it will be great to listen what you think about logan area and recent rezoning of Loganlea. Questions:- is it ok pay higher price for the properties (houses)that fall within the high-medium density or residential core for a future land bank?

Housing Affordability. APRA. Investor’s Lending. Super Property Deposit Debate. These are headline news for the last few weeks which have been monopolising the business section of most press for some time now. So, we don’t think we can wait any longer either! Now, what did they chat about today? You would be expecting conversation around the long-term sustainability of the Australian Property Market, an upcoming correction and who will be affected; APRA’s move on investment lending; changes on interest-only loans and how it will affect some borrowers out there; implementing Money SMARTS during these times; relationship between migration and the economy; the Superannuation Property Deposit Debate and more. Let us forewarn you that this Bonusisode is not as light as our usual episodes. This time, Bryce and Ben discuss some critical housing and political issues and as usual, the commentary in this show is general in nature and is an opinion comment by both of them. It does not take into account the particular investment objectives or financial situation of any potential listeners, and you should always consult a qualified professional advisor before making any investment decisions. Some of the references made in this podcast are: * CoreLogic’s Housing Market Update (March 2017) – Download here * Ep 57 | The Headwinds Are Coming – Listen here   If you like this podcast, 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/.

Bryce recently appeared on our good friend, Kevin Turner’s podcast, Real Estate Talk and we thought it would be a good idea to share it with you guys! If you haven’t check it out yet, tune in to Kevin’s podcast for some great quality property investment news, tips and strategy from Australia’s Top Property Experts and more. In this Bonusisode, Bryce and Kevin will be chatting about: * Why Bryce chose property out of all the asset classes out there * What motivated him to start investing in property * His first property and the mistakes he had made in the early years * The awareness on property investing and level of resources out there for investors * Best advice for someone who’s thinking about starting an investment property portfolio     If you like this podcast: “Chat between TPC and Real Estate Talk – Why I love property?”, 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/.

Carrying on from Part One, here’s the second instalment of Episode 110 featuring one of Australia’s most renowned Buyer’s Agents, Frank Valentic on the couch today with Bryce and Ben. Now, let’s get into it straight away! For Part Two, the guys will be chatting about: * Factors to consider when researching a location ie gentrification, schooling, lifestyle and more * Scarcity in property and what type of properties he invests in * Some of the common mistakes buyers make when buying a property * Tips and cautions to know when buying interstate * Land tax in Victoria * How to act at an auction and tips for when you’re bidding   And so much more! And of course, make sure you don’t miss out on Bryce’s Life Hack and Ben’s Did you Know segments this week to end another brilliant and informative chat with another special guest. If you like this podcast: “Meet Frank from The Block! – Chat with Frank Valentic, Director of Advantage Property Consulting”, 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/

To carry on our Real Estate Agent series, we have Frank Valentic for this 2-part episode! Household name and Director of Advantage Property Consulting, Frank often appears on the TV series The Block, helping his buyers snatch up a few properties on auction day! He joins Bryce and Ben today to give you all an insight into his world of being one of Australia’s leading Buyer’s Agents. In part one, we listen to Bryce, Ben and Frank discuss the following topics and more: * How he got into his first property back in 1995 and started his portfolio * Frank’s professional background and how he went from semi-professional soccer player, to P.E Teacher, to a Buyer’s Agent * How did he research for properties back when he just started and how it has changed since then * His mentor in life * What his motivations are for being successful in the buyers agent field * Where to get off market properties and are they always a great investment * What are the due diligence to be done prior to purchasing an investment property * Tips for first home buyers looking to get into the market   Make sure to listen to the whole of this part to learn even more tips and information. And of course stay tuned for part 2 so you don’t miss out on all of the absolute gold discussed in this week’s episode. If you like this podcast: “Meet Frank from The Block! – Chat with Frank Valentic, Director of Advantage Property Consulting”, 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/

We are excited to announce that today’s episode is the start of our Real Estate Agent Series! Joining us to kick start this series is Glen Coutinho, Director and Senior Auctioneer for RT Edgar. With over 30 years of experience within the industry, Glen lets us in on some valuable tips to keep in mind during property auctions, how to deal with selling agents and more! Here are some of the key topics that Bryce, Ben and Glen talk about today: * Glen’s professional background and how he became a Real Estate agent * What kind of property investor he is and his investment strategy * His tips on selecting an investment grade asset * Behavioural techniques to portray and look out for when buying at an auction * Rookie mistakes he sees buyers make * The strategy to being a good real estate agent and providing excellent customer service * What should you consider when engaging a selling agent * An insider’s peek at a life of a selling agent and what goes into the price setting process And lots more! Make sure to tune into this episode to find out all of the gold provided today! If you like this podcast: “Do Relationships Matter In Real Estate? – Chat with Glen Coutinho, Director of RT Edgar”, 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/

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 * Core Logic’s Pain and Gain Quarterly Report : Download Here * Fact Sheet on Guarantor Loan : Download Here * Bryce’s video on the four players in the industry is part of the Property Formula video series. If you are interested to watch this, you can Register Here   And as always, if you like this episode (Five Ways To Improve Affordability), don’t forget to rate us on our iTunes channel and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: http://www.thepropertycouch.com.au/topics/

We hope you enjoyed the first part of this two-part special guest week episode! In the second instalment of this episode with Nicole Faid; Bryce, Ben and Nicole all go into more detail concerning conveyancing, whilst focusing on some of the following areas: * Off the plan contracts: What to expect and be aware of * Possibility of getting your deposit back if you decide to pull out of the deal * Anecdotes with regards to purchasers and a vendors’ deal * Why is it important to get contract reviews and is it too late if the contract has already been signed? * A purchaser’s rights when buying a property and what the condition of the property should be like after the deal has been made * What is considered as an acceptable amount of compensation if there are faults to be repaired on the property? * The difference between joint tenants and tenants in common * What is spousal transfer and how it works?   And of course, there is so much more they talk about and in a lot more detail. With a lot more laughs, jokes and information for you all; make sure you don’t miss the second part of episode 107 and don’t forget to stay tuned for Bryce’s Life Hack and Ben’s “Did you Know…” segment.   If you like this podcast: “Contract Reviews, Off The Plan and SMSF Purchases and more – Chat with Nicole Faid, Principal of Accord Conveyancing”, 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/