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Contenuto fornito da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock. Tutti i contenuti dei podcast, inclusi episodi, grafica e descrizioni dei podcast, vengono caricati e forniti direttamente da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock o dal partner della piattaforma podcast. Se ritieni che qualcuno stia utilizzando la tua opera protetta da copyright senza la tua autorizzazione, puoi seguire la procedura descritta qui https://it.player.fm/legal.
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The 85 South Show with Karlous Miller, DC Young Fly and Chico Bean
West Coast legend Ice Cube pulls up to the trap to talk about his new album and kick it one good tine with Karlous Miller, Chico Bean, DC Young Fly and Clayton English! Off the rip they start talking about DC being in the New Friday movies. Cube takes it all the way back to how he started in Compton and Karlous asks about the lyrics to "Today Was A Good Day!" The squad talks about The Big 3 and the struggle to build an all new league. Cube talks about how the govt opposition to his early music and talks about how he got involved in developing a political plan for Black People. From Mike Epps to Bernie Mac, the conversations sways to talking about how comedians impact the movies. Cube talks "All About The Benjamins" and tells a crazy story from the time he was filming Anaconda with J Lo. This is the coldest podcast! || 85 SOUTH App : www.channeleightyfive.com || Twitter/IG : @85SouthShow || Our Website: www.85southshow.com See omnystudio.com/listener for privacy information.…
The Property Trio
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Contenuto fornito da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock. Tutti i contenuti dei podcast, inclusi episodi, grafica e descrizioni dei podcast, vengono caricati e forniti direttamente da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock o dal partner della piattaforma podcast. Se ritieni che qualcuno stia utilizzando la tua opera protetta da copyright senza la tua autorizzazione, puoi seguire la procedura descritta qui https://it.player.fm/legal.
Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
…
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Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
296 episodi
Segna tutti come (non) riprodotti ...
Manage series 2905854
Contenuto fornito da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock. Tutti i contenuti dei podcast, inclusi episodi, grafica e descrizioni dei podcast, vengono caricati e forniti direttamente da Cate Bakos, David Johnston and Mike Mortlock, Cate Bakos, David Johnston, and Mike Mortlock o dal partner della piattaforma podcast. Se ritieni che qualcuno stia utilizzando la tua opera protetta da copyright senza la tua autorizzazione, puoi seguire la procedura descritta qui https://it.player.fm/legal.
Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
…
continue reading
Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.
So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
296 episodi
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The Property Trio
1 #294: A Recap of the 2024 Year in Property – And Our 2024 Prediction Hits, Misses, Lessons and Surprises 1:04:10
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1:04:10Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM The Trio love this retrospective. Each year, they predict the following year and at year end, they review their predictions and rate each other's accuracy. Today's show is a lot of fun, and it's our longest podcast recording ever.... sorry folks. We will try to keep it under an hour going forward. Dave got the best score for our first question; "What will the market do?" "I think we'll see value growth of about 2% to 7% nationally next year." "I think the market will be weighed down by Melbourne and Sydney as they're starting to move into negative territory." "There'll be some good buying opportunities in Melbourne and Sydney for the first three to six months, but because they are about 50% of the overall Australian property market, I think they'll hold it back." "I think rental growth will outstrip value growth." ....solid marks for Dave on this one. The second question was more specific. The Trio had to nominate their capital city top performers. How did they rate? Cate's claim, "I'm going to go with Adelaide as the city that nails it". While she only picked the number two, her rationale was sound and she nominated the three top performers. None of the Trio picked the strong regional areas though. Their fourth question related to investor numbers. There was almost a thirty per cent increase in investor activity, yet none of the Trio picked this trend. What gave way to it? Tune in to hear their thoughts. How did governments intervene in the property market? From superannuation changes to tax changes, shared equity and build to rent, our Trio did score some points on this segment of their predictions. And Mike mentioned the chance of rent caps joining the conversation. What about developers and new builds? What did our crew get right with their predictions? Mike sheds light on liquidations and builder challenges. And.... the question that everyone wants to have answered. What will happen with interest rates? The Trio share what they based their opinions and projections on, and there are some great learnings for our listeners to glean. Kudos to Governor Bullock for explaining the Reserve Board's decisions each board meeting. And just for those who wondered what Mike's prediction was? "I think we might end up getting a cut in the August meeting." Dave and Cate are still paying out on Mike. Rents and Vacancy rates was the next discussion topic. The consensus is that Dave won this prediction. "Vacancy rates will stay at similar levels, unfortunately. We might see a slight uptick, but they're going to stay pretty similar around record lows." "Rental growth, I think, will outstrip capital growth." The Trio's predictions around sales volumes and listings were interesting. Cate sheds light on some of the challenges that buyer's agents face with agent's anecdotal claims. Risks that could impact the market was an intriguing segment. Dave's geopolitical views reinforced his willingness to go for the big ticket items, every time! From Trump to China and Russia, the Trio talk about some of the global challenges we face. Cate's concern about natural disasters and insurance costs scored her points on this segment. And Mike reminded our listeners of the following. "Political intervention is the number one risk to perverting the market." And lastly, how did the Trio feel inflation figures would wind up in 2024? From trimmed mean figures to post-COVID challenges, the Trio thrive with this discussion. Mike and Cate concede that Dave won this challenge. Show notes: https://www.propertytrio.com.au/2025/01/27/distilling-2024-predictions/…
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The Property Trio
1 #293: Market Update Dec 24 – Listings Hit 5-Year Highs, Affordable Properties Surge, National Values Slip & Adelaide Faces Unique Challenges 47:37
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM The Trio enjoy regrouping after a lovely summer break. This week, they canvas the December figures. The indices deliver mixed outcomes, and overall the national monthly movement registers a slight market decrease, but what can this be put down to? There are markets within markets, and the Trio break down some of the standout results. From regional cities, to Adelaide's incredible run, there are some noteworthy stats to digest. AND... maybe the Trio will construct an episode on Darwin for our listeners! Stay tuned.... Market segmentation counts for so much and the Trio point out the outperformance of the lowest quartile in six of the seven states and territories. What does this signal? And why would investors broadly target lower quartile properties? Cate shares her insights.... Rents... good news for renters but bad news for investors? Not really. While rents aren't in double digits any longer, rental growth is still mostly above CPI. Cate steps through some of the considerations that owners need to apply when considering rental increases. "But it's listings that i tend to get excited about because they filter through into our market dynamics." New listing volumes were decent last year. They were at or above the five year average. However, all listings were below the previous five year average, but the tightening was a reflection of stronger listing volumes in 2024. The Westpac consumer sentiment index is a powerful glimpse at times, and Jan 2025 reveals some interesting changes. Time to buy a dwelling, family finance, and annualised interest rate expectations... as the Westpac release suggests, "The consumer mood has soured for two months in a row and remains on the pessimistic side. However... consumers expect things to continue to improve from here." Lastly, the Trio wonder what predictive ability the ASX's rate tracker has when it comes to signalling specific dates for rate cuts.... only time will tell, but February is looking interesting! The portion of lending for investment housing is significantly above recent historical levels. Wealth effect? Comfort with no further rate increases? What has driven this? Dave points out some of the interesting indices across the varying data houses. Simple indexes can pick up some changes sooner, and Dave has some great insights for our listeners to consider. Show notes: https://www.propertytrio.com.au/2025/01/20/ep-293-dec-market-update/…
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The Property Trio
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week, Cate hosts the show and the Trio list three specific trends to watch in 2025. Dave opens up the discussion about the financial markets and contemplates the chances of a rate cut in February. He notes that the market have fully priced in a cut by the month of April. To date, the RBA's RateTracker is still showing a 73% expectation of a rate cut at the next RBA meeting. What will a rate cut do for owner occupier, investor and renovator sentiment? Cate considers the driving force upon buyers rushing in. Is it the cost of mortgage repayments, or sentiment itself? Market segmentation will be interesting once a rate cut filters through also... keep an eye on the upper quartile of the market. With government incentives, green upgrades, e-vehicles and a growing environmental consciousness, we can anticipate a significant shift. But are investors being put off by the price tag of some of these energy-efficiency upgrades? Mike talks about some of the positives for landlords who do embrace them, including depreciation benefits, while Cate covers the state and territory incentives currently on offer. We're seeing a shift in who's buying and renting properties. Dave steps through the generational changes over the decades with some great data. The superannuation laws that apply to individuals aged 55 and above are having an impact on the mobility of the housing market. Downsizing isn't the same as 'right-sizing'. Are some retirees spending the same amount of money on their smaller, retirement-age home? And what is impacting today's down-sizers and right-sizers that didn't impact the generation prior? Tune in to find out. The fourth segment is that of emerging hotspots. Dave shares some exciting hotspots for growth, along with the growth drivers that the Trio have identified for each. Infrastructure upgrades create jobs, and Mike circles in on some of the specific major projects on his list. The final segment relates to the role of technology in property investment. From AI to fractional investing, and blockchain, Mike has a bit of a list. The pace of change is hard to fathom and Dave notes that consumers will continue to embrace tools and get particularly hands on. “It’s an exciting time for tech-savvy investors, but a balanced approach is key. Use the tools, but don’t skip the groundwork.” Show Notes: https://www.propertytrio.com.au/2025/01/13/five-key-trends-for-2025/…
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The Property Trio
1 #291: The Truth About Building Inspections - What They Reveal, What They Don’t and How to Ask the Right Questions 46:32
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week, Dave hosts the show and the Trio chat all things Building Inspections. Cate starts out by clarifying the purpose of a building inspection. Contrary to popular opinion, building inspections aren't tickets to renegotiate a sale. Under certain circumstances, a renegotiation can occur, but the market conditions and competing buyer numbers will likely determine this. Building and pest inspections each require a distinct qualification, and Cate sheds light on the differences and methods of each, and the aspects of an inspector's findings that are conducive to pest infestation. Dave broaches the costs that can rack up when buyers are in the hunt for a property, particularly in the case of auction campaigns. The Trio chat about some of the ways that buyers can approach this issue. Cate also has some tips about 'on-sold' reports. Sometimes property negotiations can move very quickly, especially when an auction property receives a strong offer prior to auction day. Cate steps the listeners through the timeline that buyers need to be mindful of when arranging a building and pest inspection. Dave highlights the importance of managing a due diligence checklist. Should buyers get a building inspection before they negotiate a deal, or after? There are many different situations that buyers face, and sometimes it's not possible to avoid organising an inspection prior to securing a property. The Trio chat through some of the situations that buyers face, and how they need to navigate the building and pest inspection process. The Trio break down the building and pest inspection clause in the contract. From legal wording to the options that buyers have, this detail may be tiny, but it's very important. Cate shares some good questions for buyers to ask their building inspector when a fault or an issue is identified. What is the severity? What do I need to do to address the issues? How quickly should I do so? What is the risk if I don’t address immediately? Building and pest inspectors have their limitations and there are a number of things that the inspector won't check. Cate talks through some of these scenarios for our listeners and provides a real life example that she recently experienced. Lastly, the Trio chat about how buyers can source a great building inspector, and the secondary benefits of building inspections. ..... and our gold nuggets! Mike Mortlock’s gold nugget: Mike shares two gold nuggets.... the importance of impartiality when asking for a building inspector recommendation. Mike seconds Cate's firm recommendation to ensure that a discussion with the building inspector ensues. Relying on the report alone can lead to some panic for many, and obtaining clarity and context on the issues is valuable. Cate Bakos’s gold nugget: Some things can look worse than they are, and cracking isn't always a big deal. Other things that seem benign can be problematic. Building inspections are valuable. Show notes: https://www.propertytrio.com.au/2025/01/06/the-truth-about-building-inspections/…
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The Property Trio
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week, Dave has prepped a great episode for our listeners. Cate opens up the conversation with the first of the five mistakes that buyers make when they fail to plan. Failing to set clear short and long term goals can undermine an investor's outcome from day one. Dave provides some clear pointers for buyers to adopt as they encounter this critical first step. "Entering the property market without a plan or without goals is like running a marathon with a blindfold on. You’re bound to trip up and face setbacks." Mistake number two prompts some good discussion between the Trio. Jumping into the market without a strategy for the next purchase is unfortunately something the Trio hear about often from remorseful buyers. Making property purchase decisions that don't align with goals is more common than people would think. As Mike suggests, buyers need to consider so many facets of the property game; from managing risk, savings buffers, cashflows, tax positions, and of course, where the family home fits. Once you have aligned these aspects, you can then determine the - macro location such as the city or state that best suits that price range, your goals for the property itself for yield and growth, considerations such as minimising land tax, owning in different locations for diversification, factoring where different cities are sitting in the property cycle You can only take this macro view and planning approach to your next purchase strategy if you start with goals and a long-term plan. Mistake number three is allowing emotions to dictate decisions. There are many ways in which emotions can creep up on us. To name just a few, bias can grip, sometimes it's fatigue, and other times it could be fear of missing out. Dave shares some examples that he's seen people fall prey to over the years. "This often happens when we don’t have long-term goals to keep us focused and maintain perspective", says Dave. How can buyers balance their emotions and avoid mistakes? Mike's tips are simple and objective, but not easy to adopt without a clear plan. Mistake number four: Believing in the get rich quick myth. Dave sheds light on some of the short-term victories that seem enticing and he warns that buyers also need to assess the downside risk and be comfortable with it. Buyers need to be very wary of a range of spruikers too; some will promise double digit returns, while others could be masquerading as advisors while they sell off a stock list. "Short-term investments carry high risks, from unpredictable market conditions to expensive renovations to blow outs in costs for developments. It requires significant expertise and resources. Unless you are a successful developer, you generally need to adopt a “get rich slow” mindset." Lastly, mistake number five relates to accumulating properties without considering cashflow and savings buffers. Dave's experience with investors shines through when he lists a variety of scenarios he's witnessed over the years in relation to large property portfolios. While many investors get it right, there are plenty who don't. Our recent economic conditions have placed pressure on some multi-property investors and Dave has some good words of wisdom four those who place a value on a large portfolio. ..... and our gold nuggets! Dave Johnston's gold nugget: The key to property investment success is to view it as a series of informed strategic decisions that align to your short and long term goals. Mike Mortlock’s gold nugget: Mike relates an investor scenario to the recent Block series Cate Bakos’s gold nugget: Emotion counts for so much and Cate suggests that there is only one type of property that buyers should be emotional about. "You should be entirely emotional about buying your home. Make sure you buy a property that you love. But for your investments, you don't have to love them. You just have to be proud of them." Show notes: https://www.propertytrio.com.au/2024/12/30/five-ways-buyers-fail-to-plan/…
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The Property Trio
1 #289: Shared Equity Strategies - Making the Most of Government Schemes and Property Planning Strategies as You Transition to Full Ownership 41:21
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM A lovely listener writes in to us with some questions about the Victorian shared equity scheme. Shared equity opportunities aren't restricted to just Victoria though. This ep is relevant to any Australians who are considering a shared equity option with the government. How should Luke approach this? Should he pay it down with savings (or debt), sell and upgrade, or convert the home to an investment in time? Some background on our listener: Luke is 30 years old, high school teacher, on $120k annual salary, 1 baby, 2 dogs, 0 cats. (We like that dog to cat to child ratio!) His partner will return back to work in about 6 months on approximately $70k but this timeframe is up in the air to some degree subject to how life with the baby and parenting goes, but when she does go back, this will take their total income up to $190k. Luke bought his home in the Northern suburbs of Melbourne for $670k in 2021 with the Victorian Homebuyer Fund’s help, contributing 5% of the purchase price himself and with the Gov’t Fund covering another 25%. The home’s value has since increased to around $720,000 to $740,000, maybe more. Dave talks our listeners through the government's stake, and how the rules determine the equity split as the property appreciates. Luke can repay the government in various ways, but which way is the optimal? Tune in to find out. Luke needs to be aware of the calculations that govern the methodology for government payout. Mike lists some of the rules that the government have determined for equity buy-back. From bulk payment minimums to valuation steps, the rules are reasonably structured. Should Luke reduce the government's share gradually, versus saving up to repay the government later? Every situation is unique, but Dave shares some ideas for our listener to consider. One is a bit outside of the square, but it's a great discussion point. The Trio canvas the pro's, cons and realities of shared equity. Is a Lender's Mortgage Insurance premium something that a shared equity purchaser should consider? As Mike eludes to, it's really a question of timing, planning and goals. Cate challenges Mike.... those who consider shared equity schemes with the government need the help, and she points out the merits of such schemes. Luke has a few options to consider, but a few restrictions to bear in mind also. The Trio wish him the very best of luck with his property journey. ..... and our gold nuggets! Mike Mortlock’s gold nugget: Mike highlights the upside for those who have limited deposits. Dave Johnston's gold nugget: Aim to maximise your ownership as soon as possible! Full equity ownership is one benefit, but the options to renovate, improve, extend, invest are exciting too. Cate Bakos’s gold nugget: For those who can enter with a small deposit under the First Home Guarantee Scheme or Home Guarantee scheme.... they could also consider these options too. Show Notes: https://www.propertytrio.com.au/2024/12/23/shared-equity/…
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The Property Trio
1 #288: Market Update Nov 24 – Perth, Brisbane & Adelaide Slow, Listings Surge in Perth & Adelaide, Rate Cut Predictions & Productivity Woes 43:15
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM The Trio are back together in the studio! The Trio comment on some of the interesting indices for the state of the nation in the month of November. Cate marvels at regional performance outstripping capital city performance. The big tier, top three cities are showing weaker growth and Melbourne has continued to show modest price falls. Dave predicts that 2025 could be the story of Melbourne and Hobart. He shares his rationale... let's see how his prediction lands! Mike points to the stratified price figures and notes that the lowest quartiles are outperforming, all but for ACT and Dave touches on the per capita recession we are all currently in. Canberra's public servant population defies this trend. Rents are dipping, but they are all still in positive territory, as as Cate mentions, the rental growth is still outstripping CPI. "Any other precedent would say that these are huge numbers, but they've come off the boil a long way," says Mike. Rental increases now are normalised now though, and as Peter Koulizos has said before, rents had to play catch-up. Rental yields have decreased substantially for many regional cities, and Cate considers some of the challenges and changes that have impacted quite a few regional markets since COVID lockdowns. Sales and listing activity is a great insight into market supply. Cate doesn't expect listing figures to dramatically increase and she hints that pent up demand could show itself in early January in the larger markets. Could the start of 2025 be a bit different to recent past years? Tune in to find out. Contrasting the listing figures from October to November tells an interesting story too. Hobart's decrease in listings when contrasted against this time last year is significant. What is happening in Hobart? The Trio chat about the pressure on the RBA to control monetary policy, and they consider the key drivers and data points that our RBA are keeping a close watch on. From productivity to services inflation, unemployment to public sector job growth, (just to name a few) there are plenty of moving parts that remain a challenge. The quarterly GDP figures are out for the month of September and the strongest segment leading the charge is Agriculture, Forestry and Fishing at 6.5%. Lastly, the Trio share their thoughts on when the next rate movement could be! Show Notes: https://www.propertytrio.com.au/2024/12/16/ep-288-nov-market-update/…
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The Property Trio
1 #287: How Government Interventions Are Shaping the Property Market – The Real Impact & Side Effects of Property Regulations 43:11
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today, Cate and Mike tackle a broad array of government incentives, legislative changes and initiatives. Have they all worked? And what are some of the unintended consequences. "Lack of consultation is probably a root cause of some of these negative outcomes." The rollout of the recent Victorian rental minimum standards is one key example. As Cate points out, some of the broad brushstroke recommendations weren't all practical. The investor-led sales have also distorted the market somewhat, (for both sales and rentals) particularly when older style houses in need of renovation are concerned. From the Pink Batts scheme to cottage industries, the Duo cover off some of the negative news stories from the past. Mike dares to touch on land tax. Queensland's repealed land tax legislation is a great case in point, and Mike's company's data supported the fact that the policy was conceived. Over a 98 day period, a 17.8% drop of investment activity in this short period resulted. Data is so valuable. Pivoting from sales activity to purchaser activity, Mike and Cate consider stamp duty concessions. Thresholds are important to note, as concessional caps sometimes don't seem to make a lot of sense. Which states have got it right, and which states are missing the mark? How do concessions distort markets? Cate cites the Victorian COVID recovery stamp duty stimulus and she discusses the impact that it had on median sale prices and market segmentation. Tackling underquoting is an enormous problem for regulators. Legislation on quoting regimes across the states and territories varies greatly, but some measures that have been intended to solve the issue have amplified the issue even further and convoluted the process. And how has rent-bidding legislation impacted the industry? Tune in to find out... Lastly... what is the lasting legacy of the HomeBuilder grant? Did our government get it right? From trade shortages to untenable deadlines, there were plenty of challenges for homeowners to manage. Market distortion was a key problem, according to Cate. Mike quotes a 33% material input price hike during the COVID period. ..... and our gold nuggets! Mike Mortlock’s gold nugget: “If you move the needle somewhere, there is going to be a ripple somewhere else.” Cate Bakos’s gold nugget: Foreign investor surcharges rattled Melbourne's market a decade ago. Specific areas were impacted and local owners felt the brunt of this. Show notes: https://www.propertytrio.com.au/2024/12/09/government-intervention/…
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The Property Trio
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today, Cate and Mike dive headfirst into the findings from the Property Investment Professionals of Australia (PIPA) Sentiment Survey, taking the opportunity to unpack some pressing questions while Dave is away. A big thank you to all the investors who contributed to the survey—it’s their insights that shape episodes like this! Why are more investors selling properties in major cities like Brisbane, Melbourne, and Sydney? Cate and Mike explore the rising compliance costs, government policies, and economic pressures that are prompting these decisions. They also examine how this trend is reshaping the rental market, leaving renters with fewer options in an already tight landscape. Mike highlights a key survey finding: While investor sentiment has cooled, nearly 46% of respondents still believe it’s a good time to invest in property. He delves into why Australia’s long-term housing fundamentals—like leveraging, supply constraints, and resilient demand—continue to appeal to savvy investors. Cate reflects on the contrasting approaches states are taking to housing reform, with Victoria’s “hammer of Thor” policies driving investors away, while WA’s incentive-driven approach encourages positive change. Together, they share insights into what reforms are stressing investors most and how policies can better support both tenants and landlords. They also tackle the challenges of cash flow shortfalls caused by rising interest rates and costs. While some investors are forced to increase rents, others are reluctant, choosing to keep loyal tenants even if it impacts their bottom line. . .... and our gold nuggets! Mike Mortlock’s gold nugget : “Participating in surveys like PIPA’s isn’t just about sharing your story; it’s a chance to influence policy and create real change for investors.” Cate Bakos’s gold nugget: “This ecosystem thrives when both tenants and landlords feel supported—let’s aim for balance, not division.” Show notes : https://www.propertytrio.com.au/2024/12/02/is-investing-in-property-still-worth-it/…
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The Property Trio
1 #285: First-Time Property Investors and Family Planning - A Smart Approach to Wealth-Building 40:32
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today the Trio roll up their sleeves and tackle first-time property investors and family planning. A special callout to our lovely listeners, "Sheree" and "Chloe" (not their real names), for prompting this insightful episode. Why do first-time investors often consider helping their children onto the property ladder? Cate and Mike discuss Sheree's situation, where family planning meets wealth-building. Cate highlights the unique challenges and strategies for investing with a long-term goal of aiding children, even when they're still in primary school. Cate dives into key considerations such as the structure of the investment, future financial implications and the need for expert advice. Whether it's about protecting the asset, tax-effective planning or ensuring the investment is a gift and not a burden, the duo unpacks what parents need to know before buying property for their kids. Mike emphasises the importance of planning for retirement first before taking steps to support children. They explore how defined benefit super funds like Sheree's provide a foundation of financial security and why this can influence property investment decisions. Chloe’s question focuses on planning her first property investment. She impresses the team with her detailed groundwork—budgeting, borrowing and cash flow planning. Cate underscores the importance of clarity around long-term goals: Is it about building a multi-property portfolio or securing a single growth asset? This distinction guides every next step. The team debates whether to go for national versus local expertise when selecting a property, with Cate advocating for local buyer's agents who deeply understand their markets. She also highlights the risks of analysis paralysis and the elusive "perfect property." Instead, they encourage focusing on sound fundamentals and a strategy aligned with future aspirations. . .... and our gold nuggets! Mike Mortlock's gold nugget: "The more work you do on your strategy, the fewer options—and more clarity—you'll have for making the right decision." Cate Bakos's gold nugget: "When you're helping your kids, always ask: Is it a gift or a burden?" Show notes: https://www.propertytrio.com.au/2024/11/25/first-time-property-investors-family-planning/…
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The Property Trio
1 #284: Market Update Oct 24 – Sentiment Waxes & Wanes but for Which States? Melbourne Yields Make History! Mid-size Capitals Slow 44:47
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Cate kicks off this episode with Dave while Mike hikes around New Zealand. The Duo note some of the interesting indices for the state of the nation in the month of October. They marvel at Hobart's quick pivot and wonder what has driven the positive growth. The combined regions outperformed the combined capitals too, and despite the strong monthly performance in Perth, they note that growth has slowed of late. Dave and Cate delve into reluctant-seller psychology. After the high's of 2021 for the eastern states, and observing Perth's stellar run over the past couple of years, it's interesting to consider what behaviours are exhibited when locations experience downturns following a strong run. Dave notes that consumer sentiment data is suggesting many have a keen eye on Melbourne, and Cate shares some observations about the regional performance in Victoria. Segmenting the market into price quartiles tells quite a story. Cate and Dave use some examples in the market and they canvas the reasons why the various price points have performed so differently to each other. Rents remain steady, and aside from Hobart, the pace of growth has slowed. However, vacancy rates remain very tight and yields have strengthened. Dave points out that this combination of data is a leading indicator for value growth. Perth's downward trajectory over the past few months is quite obvious, but what could be driving Hobart's rent? Could it be an increase in short-stay dwellings? Has domestic travel to the Apple Isle increased? Or could it be related to the weather? The Duo mull it over... The correlation between capital growth and listing activity is one of the Trio's favourite discussion points each month. Although Dave makes an important point. "One of the issues with a five year average is that it doesn't factor in population growth." What's driving listing activity around the nation? Tune in to find out.... New listing activity has pivoted and Melbourne, Hobart and Canberra listing activity has dropped compared to this time, last year. On the flip-side, Perth and Darwin are exhibiting higher numbers of new listings. The consumer sentiment index shows a marked increase in the "Time to Buy a Dwelling) measure, and Dave breaks down the data by state. Victoria's measure is now over 100, a 31.5% increase, while Western Australia's measure dropped to 66. Dave points out the potential price signals in combination with listing activity. Investors are moving back in to the market at a higher rate and lending has remained steady accross the board. Victoria has underperformed on the investment lending front, unsurprisingly. NSW leads the chase with 44% of new loans secured in September. Monthly change of employed people jumped 44,000; a figure that eclipses what many would have expected. Our unemployment rate remains steady despite fears of job-losses as coined by the RBA. And... time for our gold nuggets... Cate Bakos's gold nugget: The new listing activity for 2024 campaigns is easing and there is only realistically another fortnight to run before campaigns finish and the market goes into hibernation over the Christmas period. For any buyers who wanted to purchase in 2024, now is the time! Get out there! David Johnston's gold nugget: Make your own decisions based on your own personal economy! Shownotes: https://www.propertytrio.com.au/2024/11/15/ep-284-oct-market-update/…
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The Property Trio
1 #283: Your Guide to Regional Property Investing - Critical Strategies and Townsville in the Spotlight 38:33
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today the Trio roll up their sleeves and tackle regional investing. A special callout to our lovely listener, Ester for prompting this exciting episode. Why do investors choose to invest regionally? Cate shares some of the reasons she started investing in the regions. Cashflow is one key element, but diversification also counts.Cate sheds light on some of the considerations that investors need to apply when selecting one region over another. Distance, demographics, target tenants and the growth drivers are all important considerations. Lack of diverse employers is a threat to some of the smaller regional cities, but Townsville is not one of these. It's the 14th largest city in Australia and this glorious, sunny city has a lot on offer. The Trio delve into what makes Townsville special. Cate shares some of the common traps and downsides that investors need to be aware of when it comes to regional investing. Picking a cheapie and buying in the Bronx is a risk for those who don't do their homework. Careful selection of a good investment area is critical.Keeping trade services in mind is really important in the regions. Cate also sheds light on some of the difficulties associated with harnessing tradespeople in some of the regional cities.Let's talk about Townsville! There are some significant projects underway and the Trio list some of these. The strategic location and port access count for a lot also, and the Trio also chat about the economic and industrial drivers in the area. Townsville is made up of more than forty suburbs, and it's bigger than Darwin when it comes to population count. It's the largest urban centre in northern Queensland, and surprisingly, health is the number one employer in the city. Townsville's involvement in defence is significant and the Trio share some of the insights they've gathered. Job growth is the big item for discussion, though. The fundamentals sound very strong and sustainable. Tune in to find out more...... .. and our gold nuggets! Mike Mortlock's gold nugget: "Firstly, make sure Townsville, (or any other region) fits within your strategy. But... is the word already out about Townsville?" Cate Bakos's gold nugget: You really need to understand the growth drivers, the vulnerabilities of the area, the good streets, the tenant demands and the flavour of the region. Buy and hold, long term is a great fit for regional cities. Special mention to our industry friend, Simon Pressley from Propertyology, for his generosity with his research and information. Show notes: https://www.propertytrio.com.au/2024/11/11/regional_investing/…
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The Property Trio
1 #282: The Ultimate Guide to Property Depreciation - Maximise Your Investment Returns with Expert Advice on Tax Deductions 42:59
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today's episode is all about depreciation; Mike's wheelhouse! Dave opens the conversation with a question for Mike, "How often should I update or review my depreciation schedule to maximise my tax benefits?" Reports last an owner as long as they hold the property. Mike delves into the role of the quantity surveyor when it comes to estimating construction costs. One of Cate's investing mistakes gets aired; after having completed a significant renovation on an investment property, Cate overlooked the chance to arrange a depreciation schedule at the onset. Mike unlocks the magnitude of unclaimed deductions in our nation. How easy is it to arrange a depreciation schedule, and what documentation is required? And how do self managed superannuation fund property assets differ when it comes to deprecation? Mike explains the challenges of high depreciation versus high capital growth. He is often asked the question by investors, and his Southbank high-rise, one bedroom apartment example illustrates the inverse relationship between the two measures. If a property is over forty years old, is there any point looking at arranging a depreciation report? Tune in to hear the answer! Mike explains the importance of physical inspections when a tax depreciation specialist is formulating the depreciation schedule, and he also sheds light on the circumstances that allow for a physical inspection not to be conducted. Mike's service station story is a warning to investors who engage professionals who cut corners. What is the difference between a repair you claim through your accountant and a depreciable item on your schedule? Mike shares the nuts and bolts for our listeners. ..... and our gold nuggets! Cate Bakos's gold nugget: Well-meaning advice from accountants to maximise tax deductions isn't always great property advice. If in doubt, get a second opinion. Mike Mortlock's gold nugget: Don't assume that it's not worth getting a depreciation schedule. Always check! Show Notes: https://www.propertytrio.com.au/2024/11/04/depreciation/…
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The Property Trio
1 #281: Mastering Accessing Equity - Loan to Value Ratio Strategy, Risks, Benefits & Hidden Opportunities that Shape Mortgage Strategy 45:10
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today's episode is all about loan to value ratio's (LVR). Mike throws Dave the first question; "In twenty words or less, what is LVR?" Cate delves into the reasons why LVR is so important when it comes to Mortgage Insurance. Managing risk is what lenders do, but once a buyer triggers mortgage insurance, dwelling types, quirks and risks count for a lot. Heightened scrutiny and having the final say on loan approval is something that a mortgage insurer often holds. Cate also explores those professionals who get exemptions when it comes to LVR and mortgage insurance waivers. Dave's examples bring this point to life; from postcode restrictions to zoning types to the property condition. Policies vary greatly among lenders and it can be quite complex. Cate also shares some of her experiences and insights in relation to tricky properties that sometimes pack a nasty lending surprise. Strategic mortgage brokers can assist with the associated challenges. Dave shares the history of LVR and Lenders Mortgage Insurance in Australia with the listeners... a step down memory lane for some, but a significant step for home ownership in Australia. Cate reminisces about the impact of smaller deposits and the burden of Lender's Mortgage Insurance. Is it a cost of doing business? Absolutely, but it's tough on first home buyers. Cate's support of the First Home Guarantee is strong, but she feels our Government need to offer more places to eligible applicants. And the 2% savings guarantee for eligible single parents is one policy she loves. LVR can be a great metric to track our prudential regulator’s level of concern. Macro-prudential policy intervention is evident when we look through the history books at high LVR loan origination. But what does the current five-year data show us? Tune in to find out. We talk a lot about macro-prudential regulation and how it affected credit, particularly for investors during the 2014 – 2019 period. APRA intervened, and before we knew it, lending became tough, despite reasonable interest rates. Credit was almost impossible for investors. Dave talks our listeners through the challenges of this period and the impact that our regulator had on the property market. LVR is a viable measure of health that a lot of investors and businesses use. Cate talks us through the concept of overall LVR, and how it can be reduced/optimised. Lastly, Cate and Dave touch on cross-securitisation... the good, the bad, the ugly. ..... and our gold nuggets! Cate Bakos's gold nugget: Buyers must manage risk when they are in high LVR territory when they are making unconditional offers. Dave Johnston's gold nugget: "LMI is the cost of doing business, as Peter Koulizos has told us." Dave talks about the benefit of being open minded to a higher LVR and LMI in order to get into the market earlier. Mike Mortlock's gold nugget: Mike talks about the potential cost of avoiding LMI, and he reminds listeners that these costs can be modelled. Show Notes: https://www.propertytrio.com.au/2024/10/28/mastering-accessing-equity/…
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The Property Trio
1 #280: The Impact of Infrastructure on Property Values & Choosing Between Melbourne and Brisbane for Your Next Investment 57:34
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Marilyn's question is about the suburban rail loop civil works in Melbourne, and how this could influence the suburbs and property markets that are impacted by the project. Dave sheds light on the shortfalls of Melbourne's current rail lines, and the future changes that the project will enable. "It is the most expensive infrastructure project in Australian history". Mike ponders how the new stations and hubs could impact different genres of properties and he dares to step into town planning initiatives. Dave asks the obvious question; how will higher density, (and more inhabitants) impact businesses and heightened demand for services? How could this impact property prices in the 1.6km radius within these affected stations? Cate points out that this insight is transferrable amongst several other cities that have invested in their rail infrastructure. Cate and Mike discuss the positives of a commutable location with easy transport hubs. Will buyers pay more for an easy commute to work? Absolutely. What are the likely impacts of higher density hubs in designated locations? The Trio consider the impact across the nation for various planning changes for high-amenity areas. And Cate raises the question: what do these new stations mean for the various precincts that are impacted? Melbourne has four new train stations hitting the map in 2025 and there will be plenty of positives. Hunter asks the Trio where they'd invest if they had $500,000 or $1,000,000 in either Melbourne or Brisbane. Cate ponders why Melb vs Brisbane is a popular consideration. Recency-bias from the Olympics, or weather differential are two considerations, but could it be price-points? Or the media? Is Melbourne's potential bounce back a factor? Dave lays done some really important property planning considerations, and Hunter's scenario is put under the microscope. The Trio unpack some of the complexity that should be considered, and Cate shares some specific Victorian examples at these two price points. Mike unpacks locations around the country where listings have increased at the highest rate. What are they? And why have the listings exploded? Tune in to find out.... ..... and our gold nuggets! Mike Mortlock's gold nugget: The strategy is more important than the hotspot! Cate Bakos's gold nugget: Rail amenity counts for a lot. What are our town planners thinking, and how is rail infrastructure playing a key role in our growing population threat to traffic congestion? Show Notes: https://www.propertytrio.com.au/2024/10/21/listener-questions-rail-projects-and-melb-vs-brisbane/…
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The Property Trio
1 #279: Market Update Sep 24 – National Price Growth Slows, Rents Drop to 4-Year Low, Is Perth Finally Slowing as Listings Boom Nationwide? 50:35
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike kicks off this episode, and after stumbling with Cate's surname (yes, he's on fire with names), the Trio crack into the market update for September. "Is this the beginning of the peak or decline for these markets?" Perth's rate of growth has slowed, and the Trio ponder whether it's listing numbers, tightening household savings, or interest rate pain that is contributing. How long can the three top performers maintain this strength? And are they at their peak? Perth's annualised growth is currently sitting at 24.4%, which is significant by any historical measures. Taking the Reserve Board's monthly press releases into account is important. Until we return our inflation numbers to a figure within the target band, our interest rate pain is likely to remain. Dave sheds light on net overseas migration numbers and draws a parallel with the slowdown in price growth, and the Trio overlay the listing figures that are amplifying the supply/demand imbalance. Mike and Cate chat about mean reversion and some of the weaknesses of this popular argument. Just because Darwin hasn't performed well over many years, does not mean that Darwin's 'turn' is next. There is more to mean reversion than just labelling a slow performer 'the next one'. Rental pressure continues to soften. What could explain Hobart's pattern? Rents have all come off the boil with the exception of Hobart. Cate has some insider insights.... Will pressure on rents continue to ease? As Dave mentions, household formation rates are playing a powerful role in the rental numbers also. Cate ponders the impact of student numbers and the effect on market segments, specifically inner-city apartments. The key takeaways from the consumer sentiment index include 'Time to buy a dwelling'. The WA figures are interesting in particular. The 'Interest rate expectations index' has dropped substantially, and once again, the differences across the states and territories might be telling us a valuable story. Sentiment counts for a lot, and Cate considers the impact of the anticipation for a rate cut during September. The 'House price expectation' index was another that the Trio noted and Dave noted WA's and QLD's softening for this measure, and contrasted it against Vic's and NSW's uptick. And we've hit the highest number of new investor lending commitments that we've seen since Jan 2022 this month, and as Dave points out, "That was back when the cash rate was just 0.1%." Are first homebuyers getting enough support? Shared equity... yeah/nah? The Trio chat about some of the government led initiatives that offer some support to first homebuyers. And... time for our gold nuggets... Cate Bakos's gold nugget: The rate of change of rental growth is easing and it will be interesting to see how this filters through into political policies. David Johnston's gold nugget: "Markets are cyclical. No market is always flying or always struggling. Have a long term plan when you're buying property." Mike Mortlock's gold nugget: When it comes to first homebuyer activity, it seems that we're addicted to stimulatory stuff. But we don't tend to have many policies that help with supply. "We need to attack the supply issue, rather than stimulus, stimulus, stimulus."…
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The Property Trio
1 #278: Crafting a Personalised Plan for Retirement Success: Boosting Cash Flow, Scaling Back Work and Strategic Downsizing 45:30
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today's episode is a great case study. Georgia is stating to feel the strain of managing her two investment properties and she wants to make sure she makes the right decisions now so that she can enjoy her retirement. Georgia is 52 and has no children, lives in Sydney, and works four days per week. She owns a property in Pagewood, (Sydney's eastern suburbs) and St Leonards (lower north shore). Collectively they are valued at $2.86M and they bring in a rental income of $86,000 per year. Her plan has always been to eventually move in to the Pagewood property, but she wants some help working out when and how to do this. Ultimately though, Georgia will want to downsize into something more manageable. What are Georgia's key challenges? Georgia has no borrowing capacity in this current economic and lending climate. The change in interest rates have been tough on Georgia, (and many others), but her offset balance and savings balance ($285,000) are holding her in good stead. Dave steps through these challenges in details and has some ideas and modelled scenarios to share with Georgia. Should she hold? Should she sell? Or are there other options? Considering the cashflows is one thing, but calculating the recent capital growth that Georgia's two properties have delivered is also important. Mike shares Georgia's financials with our listeners, and while the data is detailed, it's reassuring to see just how much wealth she has built whilst also enjoying the important things in life. One key observation is the power of time, and what this has done for Georgia. Georgia has a portfolio equity position of $1.257M and an LVR of 56%. She has stayed the course, and as Cate points out, "It's a healthy LVR!" Georgia considered selling one of her properties to fund her cashflow. Dave chats about the modelling, likely outcomes and questions they addressed. What did they determine would optimise Georgia's scenario? And what did she decide? Tune in to find out how the modelling gave her the answer. Cate touches on the value of time, and the prize that it can deliver for those who are patient. Mike discusses the shock that our pace of interest rate increases delivered for a lot of investors. While we may be close to equilibrium, our last two years have been tough on plenty of households. Back to Georgia... what is her risk profile? And what determines risk profile? And how does risk profile translate into goals, options and decisions? Back to metrics... the Trio chat about how to best construct conservative estimates and Cate leans on her 29 years of investing experience and assures Dave that his vacancy rate modelled assumptions are reliable. Mike circles in on the historical growth of each of Georgia's two properties and he wholeheartedly supports her decision. Dave shares in detail the three scenarios that were modelled... and following trialling multiple versions, the findings were compelling. Tune in to find out! ..... and our gold nuggets! Cate Bakos's gold nugget: "Personal finance is just that.... it's personal!" Mike Mortlock's gold nugget: Mike's vegies and dessert metaphor is apt, but in this case, he marvels at how Georgia made the vegies into dessert. Her regimented approach impressed us all. Dave Johnston's gold nugget: This was one of Dave's favourite case studies and he highlights why you don't need to own lots of properties to get a benefit out of one key plan. Show notes: https://www.propertytrio.com.au/2024/10/07/case-study-retirement-success/…
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The Property Trio
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Today's episode is a special one. The Trio have often reflected on their own past experiences as investors and home buyers. This time, they decided to share their nerves, excitement and rookie mistakes when they each tackled their own first purchases. Mike had an exciting week when he bought a home, rolled his car and took of to Thailand on a trip. He paid $230,000 for a home in Waratah (Newcastle) and thought hard about all of the ways that he could generate some income out of his asset. Renting a room to his previous flatmate, drawing up a depreciation schedule, and contemplating a cleanup of an otherwise rugged property was the beginning of Mr Mortlock's property success. A $30,000 immediate uplift for a $12,000 investment was a great payoff. Young Dave was a 25/26 year old mortgage broker, driving around in his EB Ford Falcon when he decided to get serious about mortgage broking. His red clinker brick, older style apartment caught his eye immediately, and for all of the right reasons. Dave paid $176,500 for his first home. Cate touched on the fear of debt and the enormity of the pressure she felt once she took possession of her first home. This isn't an uncommon feeling for some buyers. "What if I lose my job?" Cate's first purchase was a townhouse that she bought off-the-plan in Mordialloc. She talks about the pros, cons, and the better alternatives she could have targeted. She contrasts the skills she had then vs now. Dave was able to apply his mortgage broking skillset to his acquisition, but he maintains that he felt very nervous about the purchase itself. From contract signing to comparable sales data, Dave recalls that he was relatively green as a first home buyer. He recalls the ways that he monitored and researched loan products and interest rates. How did buyers navigate the home buying process back in their day? Cate recalls her expensive phone bills, when agents had mobile phones and Telstra charged by thirty second blocks for landline calls to mobiles. "Doing the legwork" was different for first home buyers prior to online property search engines being commonplace. From slicing out line advertisements in the paper to collecting magazines in the coffee shops, Dave and Cate reminisce. What were their income to asset price ratios? Clearly, Dave and Mike were on better incomes than Cate. Mike: 3.4% Dave: 3.5% Cate: 4.8% How did the Trio members each borrow? What were their loan products? Did they go via a broker? And how did grants and initiatives spur on their decision to purchase? And how have their first purchased properties performed over the years since reselling? ..... and our gold nuggets! Mike Mortlock's gold nugget: "Don't sell if you can avoid it!" Dave Johnston's gold nugget: Getting into the market and making a decision is important. Don't overanalyse, get in the game. Cate Bakos's gold nugget: Surrounding yourself with knowledgeable people is important. Cate's top two picks are; 1. a strategic mortgage broker, and 2. a great conveyancer. Show notes: https://www.propertytrio.com.au/2024/09/30/our-first-property-purchase/…
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike's company, MCG Quantity Surveyors, recently released a comprehensive report on affordable housing in our capital cities. The report focuses on the lower 25% of the property market across Australia’s major capital cities. MCG wanted to identify what’s truly "affordable" in each market by analysing the 25th percentile of sales prices. This approach gives a clear snapshot of the most budget-friendly properties currently available, which is crucial information for anyone trying to navigate today’s challenging market. Cate steps through some of the median prices around our nation and she contrasts Sydney against Perth. Mike asks, "How many years of income it would take to purchase a median priced home in the market?" House price to income multiples are a reasonable measure of affordability, and the multiples for both houses and units across the two cities is fascinating. Contrasting other cities is intriguing too; Perth vs Hobart requires more consideration than just income multiples. There is no doubt that the metric is a bit of a blunt instrument, though. Are there specific areas within our cities where affordability is better, or is it tough across the board? I In Sydney, for example, regions like the Outer South West, Central Coast, and the Outer West and Blue Mountains offer more affordable options compared to the inner suburbs. These areas typically offer a more suburban or semi-rural lifestyle, which tends to come with a lower price tag. In Melbourne, the western suburbs such as Werribee and Tarneit are also known for being more affordable, particularly for houses. These areas are popular among families and first-time buyers who are looking for more space without the hefty price tag of inner-city living. "Mike, for someone looking to buy or invest, where should they be focusing their attention?" Despite the strong recent growth, Perth still rates. Tune in to hear why.... Cate prompts Mike to share what the data means for the future of affordable housing in Australia. Affordability varies significantly not just across the country, but even within individual cities. It’s crucial for buyers and investors to understand these local dynamics and to do their homework. While the headlines often focus on the un-affordability of the major capitals, there are still opportunities out there if you know where to look. The data really emphasises the importance of being informed and strategic in your property decisions. Whether you’re buying your first home or looking to expand your investment portfolio, understanding the market is key to making the right choices. ..... and our gold nuggets! Mike Mortlock's gold nugget: Median house price to income multiples challenge some buyers and Mike showcases the opportunities that quality units can provide when considering the lure of inner-ring, blue chip suburbs. Cate Bakos's gold nugget: With all of the changes we're seeing at local council level, it will be interesting to see how the affordability measure changes with higher density developments that are closer to CBD. Dave Johnston's gold nugget: "Always flip it around to your own situation, your own economy and your own price point in order to work out what the best investment is for you." Show notes: https://www.propertytrio.com.au/2024/09/23/budget-friendly-properties-in-aussie-capitals/…
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The Property Trio
1 #275: Market Update Aug 24 - Perth & Adelaide Surpass Melbourne Median, Buyer Sentiment Up in NSW & Vic as National Market Cools 59:04
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike kicks off this episode, and after establishing Dave's surname's correct spelling, the Trio launch into the August figures. National figures were up across the board +0.5%, but as Mike eludes, it's really a tale of eight cities. How long can the three top performers maintain this strength? And are they at their peak? Perth's annualised growth is currently sitting at 24.4%, which is significant by any historical measures. "We've got three very heavy lifters, and their growth isn't really easing", says Cate. Although Dave's focus on Brisbane's growth rate suggests it may be a city that is coming off it's recent high pace of growth. Interestingly, median values are not the most reliable indicator of places on the performance league ladder. The Trio have discussed the imbalance of houses to units in the various capital cities, and they cite this example as a case in point. Given Melbourne has a higher proportion of units than each of Adelaide, Perth and Brisbane, the median value figure is influenced by this ratio in every city. What could trigger Melbourne's market to rebound? Cate steps through her three possible triggers for change. Dave points out the rental yield figure; a potential indicator of a price signal to a lot of investors. For the first time in the history of the Core Logic gross rental figures, this is the first time that Melbourne has been on par with Brisbane and Adelaide. The Trio delve into the impact of COVID and the market recovery, followed by Victoria's static performance on the Victorian regions. Will pressure on rents continue to ease? Supply is our challenge, but quite a few cities are showing a slowdown in rental rises. An increasing household formation rate, seasonality in the southern states, and lower student numbers are contributing to some of the easing. In addition, holiday house sales have softened the rental conditions, as has the return to work for many workers. Less people need their additional bedroom for work-from-home purposes, hence household formation rates have been able to increase. Listing numbers count for a lot when it comes to capital growth, because supply and demand can tell us a lot. The three high performing cities have particularly tight stock levels and a decline in old listing numbers, however Brisbane appears to be exhibiting higher new listing numbers this month; a possible sign of market easing. And while listing figures are segmented for cities, unfortunately they aren't segmented for dwelling types, and as Cate points out, there are markets within markets. The Trio cast their gaze over the Westpac Consumer Confidence Index. A slight increase in the 'time to buy a dwelling' looks significant until we recognise that sentiment to buy a dwelling is still well under 100, indicating that less than half of the population believe that now is a good time to buy a dwelling. Dave's state-based focus is intriguing though. Which cities have had modest increases, and which have shown far higher figures? The answer may surprise... Inflation remains our RBA's challenge. As Dave points out, inflation hurts everyone, while higher interest rates hurt a segment of our market. Our reserve bank governor's caution is palpable and the Trio's general consensus is that we won't see an interest rate cut in 2024. Turning to finance and lending; refinances have fallen away and loan percentages have been impacted by this change. But what has caused the tumble in refinancing? The Trio unpack the various triggers for this. And the Trio consider Loan to Value Ratios (LVR's) and the historical changes that have occurred with leveraging, deposit sizes and costs of borrowing..... an ep in the making! Dave, Cate and Mike discuss the intricate balance that the RBA have to manage between inflation, employment, wage growth and market confidence. Lastly, the three year bond yield currently sits slightly below our current interest rate and indicates a potential for short to medium term market expectations for a rate reduction (or two or three)... time will tell, but our money markets are interesting leading indicators. And... time for our gold nuggets... Cate Bakos's gold nugget: For all of the investors who have been experiencing rental growth.... we have to keep market conditions in perspective, and given rental growth is slowing, investors need to pay attention to their property manager and take on good advice. David Johnston's gold nugget: "If you invest, expect ups and downs, but don't lose sleep during the downs. Usually, when we make mistakes, it's when our investments are flat, and people feel the heat and sell." Maintaining a long term, pragmatic expectation is a healthy perspective. Show notes: https://www.propertytrio.com.au/2024/09/16/ep-275-aug-market-update/…
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The Property Trio
1 #274: Fast-Tracking Financial Independence - Navigating Debt, Portfolio Growth, Expenses and Retirement Goals 33:30
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week our topic comes from a valued listener, Gaurav. Gaurav and his wife have made some impressive strides in building their property portfolio since moving to Australia in 2019 by now owning 6 properties, and they're at the stage where they are looking to achieve financial independence within the next 5 to 7 years. "Hi Property Trio Team, I have been listening to your podcast for the last two years and have listened to every episode of the property trio previously The Property Planner, Buyer and Professor, we do miss Peter, though Mike is a great add to the team. Our goal is to be financially independent in the next 5 to 7 years. Are we on the right track, what are some of the steps we should take to get there in time." Mike steps through the specifications of the six properties in their portfolio, all the while marvelling at their acumen and sheer drive. Their total debt sits at $3.219 million, giving them a Loan-to-Value Ratio (LVR) of about 76.6%. This is impressive, and no mean feat! Our couple's rental incomes may be strong, but their debt repayments are greater, leaving them with a net monthly rental loss of $3,195. But stepping through living expenses, owner-occupied mortgage obligations, negative gearing benefits and other deductions change the figures significantly. Mike sheds more light on the associated tax benefits that Gaurav and Amit have access to. Given that their properties are negatively geared, they’re in a position to leverage some tax benefits. Their annual loss on the properties is approximately $38,340. With the properties being jointly owned, this loss would be split evenly, reducing both Amit and Gaurav's taxable incomes by $19,170 each. Given their current employment incomes, this reduction in taxable income would translate into a tax refund of about $7,092 per person. Combined, that’s a total refund of $14,184 for the year. When we break it down on a monthly basis, this refund adds an additional $1,182 to their cash flow each month. So, after factoring in this tax benefit, their after-tax surplus jumps to $6,570 per month. This is a significant boost to their financial position, helping them manage their expenses and potentially accelerate their investment goals. Dave steps our listeners through the outlook and timing for our amazing couple to reach cashflow-positive status with their portfolio. Cate asks the big question: Can this couple retire within seven years? At the seven-year mark, our couple's projected property portfolio is valued at just shy of six million dollars, but despite this impressive figure, they aren't in a position to retire. The Trio ponder the power of time and they mastermind some ideas for Gaurav and Amit to consider in order to optimise their retirement outcome. "To answer their original question, I think to be conservative and provide a range, I would say that they could expect to be able to live partially to entirely off their rent in 10-15 years on their current trajectory", says Dave. "A big part of this picture is to maintain good savings habits." Dave canvases some suggestions to consider for our duo to maximise their lifestyle flexibility. Divesting doesn't always feel great for investors, but sometimes selling assets is an important part of an investor's long term plan. .... and our gold nuggets! Mike Mortlock's gold nugget: Dedicating time and being decisive is the key, according to Mike. Dave Johnston's gold nugget: "Most people don't actually know their numbers when they are looking to make a purchase, let alone having a long term plan." Flying blind is so dangerous, as opposed to having a clear strategy that can aid you to make decisions that are aligned with where you want to be in the future. Cate Bakos's gold nugget: Selling a mature property vs holding - what is the right approach? It all stems from strategy. There is no right or wrong, but investors need to be clear about their strategy before they start acquiring assets. Show notes: https://www.propertytrio.com.au/2024/09/09/listener-question-financial-independence/…
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The Property Trio
1 #273: Mastering the Art of Intuitive Property Inspection - Using Your Sixth Sense to Spot Invisible Warning Signs 45:15
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week our topic comes from Cate. Dave kicks off the episode by delving into the concept of a "sixth sense", and questions the science behind it. From pattern recognition experience, to subconscious processing, and a study called heuristics, Dave questions the notion of this ability. "When do your spidey senses start to ring alarm bells?" Cate steps through some of the signs that she has picked up on when canvasing a neighbourhood or a neighbouring property. What are the subtle signs? And what should buyers keep an eye out for? Cate shares some real life experiences in this gripping episode. Safety is paramount, and the Trio talked together about some of her hair-raising, less than pleasant inspections. Having safety protocols in place is essential for all buyers, including buyer's agents. When else do you get a sense of an issue with a dwelling? Being familiar with issues such as illegal conversions, works that have been conducted without permits, and questionable extensions/renovations that may not have insurance cover is a valuable accrued experience. How does Cate tackle some of these issues to determine whether a property is worth pursuing or not? Mike delves into vendor behaviours and vendor personalities. How can an experienced person determine a potentially difficult vendor? And what insights can buyers apply to get a better idea of what type of vendor could be on the other side of the transaction. Cate shares some of her past actions when it comes to protecting buyers from vendors who attempt to do the wrong thing. One of her stories includes a vendor who swapped out good appliances for inferior appliances. Contract inclusions and documentation is critical. Strata managers are another key person in the due diligence steps for a strata property, but gleaning information is not always easy. However, there are some warning bells that buyers should be aware of. Sometimes issues can stem from legal representatives that aren't responsive or throw other stressful challenges into the mix. Cate steps through some of the tell-tale signs and things to look out for. And what about sinister issues? The Trio unpack some of the more spooky elements that can sometimes strike in a property. .... . and our gold nuggets! Mike Mortlock's gold nugget: Mike shares a good tip he remembered about meeting the neighbours if in any doubt. Cate Bakos's gold nugget: "If it's an important thing, and it's been agreed to, get it in writing. And if the other person is reluctant to sign, there is your warning bell. Show notes: https://www.propertytrio.com.au/2024/09/02/intuitive-property-inspection-sixth-sense/…
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The Property Trio
1 #272: How Proximity to the CBD Across 10km Rings Impact Property Yields, Contrasting Houses vs. Units & the Regions 41:36
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM This week our topic comes from a research report commissioned by Mike’s business MCG Quantity Surveyors, and it focussed on how yields change per city as distance from the centre of the town or CBD increases, so there’s a lot to unpack here. We often hear people quoting about buying within say 10, 20 or 30kms from the CBD, but Dave unpacks the factors that also need to be taken into account with this consideration, and Cate questions whether commute times are the more important measure. But how do units and house metrics differ when it comes to distance from CBD? Rental yields are one interesting metric that MCG's study has focused on in each capital city. There is one city that bucks the trend... and it's Melbourne. Melbourne's unit rental yields decrease as the distance from CBD increases. What is driving this? Could it be buyer attitudes towards outer ring locations? Is infrastructure the problem? Or is Melbourne's landscape physically different? Tune in to find out. A Affordable and aspirational are two very different drivers. Cate and Dave ponder how our urban make up differs around our capital cities. In particular, Dave cites some interesting student population statistics. The results may surprise our listeners! Regional areas were also canvased in the study and some of the drivers for double-digit yields are explained by Mike, and he cautions those investors who target rental yields without understanding the other aspects of investment strategy and asset selection. The Trio take a trip around Australia and uncover some of the highest rental yields across the nation. Cate and Dave agree on the importance of looking beyond the rental yields. Conducting thorough due diligence is essential for any investment area. "The study has essentially confirmed our thoughts that regions are higher yielding than cities and the super-yields are often associated with mining and the like. So getting back to these concentric rings of distance from the CBD. What do we think the strengths and weaknesses of an arbitrary division like that is for investors?" The Trio loved bringing this episode to life and MCG Quantity Surveying have provided the report for listeners to access. We've saved it in our show notes and we hope our listeners enjoy digesting it. ..... and our gold nuggets! Cate Bakos's gold nugget: It's integral for investors to know what their purpose is for investing. Different life stages and different retirement strategies could shine a spotlight on yield. David Johnston's gold nugget: "That's a great one Cate. I might just double down on that!" Mike Mortlock's gold nugget: Mike likes the fact that they took a metric that is often used, and demonstrated that research is not always valuable to investors. Yield is not everything, it's just one part of the puzzle. Show notes: https://www.propertytrio.com.au/2024/08/26/proximity-to-cbd-across-10km-rings-impact/…
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The Property Trio
1 #271: Market Update July 24 – Adelaide Closing in on Melbourne’s Median, Investors Return in Force & Renters See Relief as Growth Slows 56:21
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike kicks off this episode, and the Trio reminisce about Pete Koulizos's special place in the history of the show as they marvel at Adelaide's stellar growth. How sustainable do they think the City of Church's continued growth is? Dave references the quartile performance breakdowns, and the possible leading indicators when it comes to capital city growth cycles. The softening of the higher priced quartile of the market is important to note. The market sentiment is currently hinging on interest rates and the possibility of a rate cut, and Cate canvases the challenges associated with this, and in particular, her local market. Despite the heightened listing activity, interstate investor interest is buffering Melbourne's price falls. The difference between the heated markets and the softer markets at the coal face boils down to the sense of urgency. Brisbane, Adelaide and Perth are plagued with tough buying conditions, while other softer markets are experiencing longer days on market, more indecision and relaxed competition. The chart illustrating the onset of COVID in March 2020 relative to peak levels attracts some attention and the Trio consider the growth drivers, inhibitors and obvious reasons for the vast differential in growth figures. Considering that during this time, three cities that have delivered between 64%-70%, contrasted to 10.6% and 28.7% in Melbourne and Sydney, respectively is fascinating. How important is timing, and can we pick a market peak and trough? The rate of rental growth is the smallest monthly rise since August 2020 and some markets are exhibiting rental drops. It's fair to say that rental movement appears to be plateauing now. Cate reminds listeners about the seasonality of asking rents and rental stock, particularly in cooler climates. Dave hints at the impact of reducing rental rates on the CPI money markets also, and considers that the impact on inflation could be positive. And what is happening with listings? We have more new listings than previous years, but our total listing figures are still below historical levels. Mike points out the correlation between listing figures and capital growth and Dave circles in on Brisbane. Could heightened new listing figures hint that Brisbane's market is peaking? The standouts in the Westpac Consumer Sentiment Index are relate to the Interest Rate Expectations index and the Family Finances vs a Year Ago. Are households getting accustomed to the conditions now, or have household savings stabilised now that some of the other costs like fuel and consumables have calmed down..... or could it relate to the recent tax cuts? Mike points out the impact of insurance and the costs associated with natural disasters on the inflation figures. Breaking the figures down into states and territories is interesting though, and NSW records the bleakest outlook for Time to Buy a Dwelling, as Dave cites. The figures within the ABS lending indicators data demonstrate that investors are certainly strong. Owner occupier finance for first home buyers is reasonably strong in both QLD, VIC and ACT and Dave puts this down to incentives and government support. Lastly, Dave discusses the delicate balance between interest rates, the unemployment rate, and the complexity that the Reserve Bank board have to consider at every step. And... time for our gold nuggets... Mike Mortlock's gold nugget: While the monthly updates are great, month to month isn't a big indicator of movement. It's really the trends that we need to pay attention to. David Johnston's gold nugget: "If you're not willing to purchase interstate, then the month to month figures aren't that relevant. If you're not willing to purchase interstate, then the best time is now." Cate Bakos's gold nugget: Household spending of toys has been curbed, and Cate takes some encouragement from the decrease in travel/holidays in the finance and spending activity figures. Here's hoping for an interest rate cut soon! Show notes: https://www.propertytrio.com.au/2024/08/19/ep-271-july-market-update/…
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The Property Trio
1 #270: How to Build a Diversified Investment Portfolio - Aligning Personal Goals with Timing, Age & Inheritance 46:33
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Emma has a great question: "I am early thirties and my husband late thirties, we have two young children. We recently made our forever home purchase in Seaholme around a year ago (not many in Melbourne know where that is but Cate will!) $2+ mil. Our mortgage is approx $880k, mostly offset. I love the area and all going to plan we stay here forever, no plans to upgrade. Our combined income is just over $500k per year (gross) I work part time and will increase my income when kids go to school. We own an inner city apartment that is rented at $900 a week and will sell when kids are out of childcare. We have cash savings that could enable a deposit on an investment property. My husband has purchased multiple properties in the past, (mostly smaller interstate properties) and our PPOR is my first property purchase. I have always been into shares and have done quite well for us investing pre home purchase. My default thinking has been 100% share investment after buying the PPOR however perhaps an investment property is the way to go first. My query is timing, now or wait?" Alignment of investment timing with personal financial stability is crucial for several reasons. Financial stability determines an investors ability to manage and sustain and investment, particularly in volatile markets. It also puts an investor in a stronger stronger position to absorb any unexpected costs or economic downturns that might affect their investment. Factoring in time and compound growth, an investor has some positive outcomes to look forward to, and Dave talks our listeners through some realistic modelled projections. "And this is why starting early is so advantageous." Emma has also asked for the Trio's thoughts on shares vs property and what would be a good diversification mix. Emma has a background in shares and has done well. Starting off with diversification first, how should this consideration be factored into an overall investment strategy? From superannuation to asset allocation, there are many important considerations for investors to canvas. Tune in to find out... How does a person's age factor into an investment strategy? Mike dares to answer... but there is a common theme.... TIME. What role does property play in property investment, and how does it compare to shares? Dave shares another fantastic example of leverage vs cash. Over 10,20 and 30 years, the outcomes are astonishing. Shares versus property... Mike is in the hotseat, but Dave details the pros and cons of each too. But canvasing a balanced strategy; for someone who is ambivalent and not particularly swayed towards either property or shares, the Trio have a few thoughts about how investors can achieve a balanced strategy. Dave's key points include; An initial focus on securing a home and acquiring 1-3 investment properties as soon as possible, Opening a focus to shares, whilst maximising super contributions in the early days Retaining the ability to continue paying down any existing debt Timing share investments when rental cash flow becomes positively geared, and Maintaining a healthy balance of both asset classes Cate's knowledge of Melbourne's inner-west shines through, but she reminds listeners that there is more to property strategy than just circling capital growth prospects. Assuming Emma is circling capital growth, Cate has some local insights to share. What advice does Dave have for those who are anticipating inheritance and/or bonuses? Research suggests that this can impact negatively on people's diligence with budgeting and investing ..... and our gold nuggets! Cate Bakos's gold nugget: These listeners are young and they are thinking pro-actively about investing. Time is their best friend! David Johnston's gold nugget: What jumps out for Emma and her husband is the fact that they have been investing since a young age. Dave marvels at their diligence, and reminds listeners that this couple are in a great position because they started young. Mike Mortlock's gold nugget: Mike reflects on the shares vs property discussion and he challenges our duo to consider the power of leveraging. Show Notes: https://www.propertytrio.com.au/2024/08/12/demystifying-auction-campaigns-2-2/…
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The Property Trio
1 #269: Auction Day Drama - Setting Reserves, Mastering Your Strategy, Handling Setbacks, Auction Day Pressures & Preparing for Success 40:09
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM We often talk about property acquisition experiences from the buyer’s perspective, but this second part episode is all about the auction campaign process from an agent’s perspective. The Trio specifically circled in on the challenges and flavours of auction day, noting the various twists and turns that campaigns can take. What visibility does the vendor have throughout the campaign? From campaign updates to online buyer activity reports, the agents can track a multitude of leading indicators to share with the vendors along the way. Dave promps Cate to share some of the things that can go wrong for the vendor and their agent in the final week of the auction campaign. Buyers circumstances can change, finance delays could ensue, legal issues could arise, or buyers could purchase alternative properties. So many challenges can crop up and agents need to be prepared to pivot quickly. And what happens when another similar property comes onto the market with a lower auction quote range? Mike questions vendor-led curveballs and Cate chats about the things that can lead vendors to change things up. Cate walks the listeners through some of the behind-the-scenes things that most buyers wouldn't realise, including reserve price setting. The Trio delve into the pro's and cons of leaving the reserve price setting to auction day. The pressure that many vendors face is quite significant, and Cate's insights into the 'half time show' (or referral) sheds light on the intensity of the decision to place the property on the market. Pass-ins can be terrifying for some, but being equipped with knowledge and comparable sales research can make a huge difference. Cate shares some tips for buyers who may face a pass-in. Cate demystifies heckling, auction disrupters and intimidating behaviours. She also delves into the risks that buyers take if they annoy the auctioneer. Intimidating bidding is tough for buyers who are ill-prepared, but there are other mistakes that buyers make at auction. Cate's real life story about bidding increments and auction rules illustrates the critical mistakes that buyers sometimes make. The auctioneer, agents and vendor's plights must be considered when bidders make mistakes. .... and our gold nuggets! Mike Mortlock's gold nugget: Mike reflects on the complexity of auction campaigns. Cate Bakos's gold nugget: How you are viewed by the vendor. The agent is the conduit between the buyer and the vendor. Buyers need to consider the impact and influence that the agent can have on the vendor when it comes to favouring certain buyers. David Johnston's gold nugget: Agents deal with different vendor personalities all the time. It's OK to ask for a bit of background about the vendor if you are wanting to understand more about what the agent is dealing with behind the scenes. Show Notes: https://www.propertytrio.com.au/2024/08/05/demystifying-auction-campaigns-2/…
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The Property Trio
1 #268: Demystifying Auction Campaigns - Navigating Underquoting, How Agents Attract Buyers, Pricing Tactics and Assessing Buyer Interest 46:37
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM We often talk about property acquisition experiences from the buyer’s perspective. We have spoken a lot on the show over the years from Cate's perspective as a buyer’s agent. But this episode is a little bit different. The Trio have delved into the auction campaign process from an agent’s perspective to share behind the curtain for our listeners. We often find that when we step into another person’s shoes, we get an appreciation of the situation from their side. This episode is all about demystifying some of the agent-speak when it comes to auctions, but it’s also about educating our listeners to be able to get a better appreciation of the twists and turns auctions can deliver. What are the key differences between an auction campaign and private sales campaigns? The conversation quickly arrives at underquoting, and Cate distils the limitations to the transparency of the campaign, and the Trio chat about the variability of auction results. Cate also touches on the power of social proof, and also the situations when underquoting backfires on agents. The Trio canvas the challenges that agents and vendors face when competing campaigns are quoting lower estimated auction price ranges. "Appraising a property is a combination of art and science." Dave delves into the challenges that a real estate professional, (and even a valuer) faces when appraising or valuing a property. Cate chats about the skill of the agent to manage good dialogue with their buyers, but she also sheds light on the usefulness of CRM's. What are some of the hallmarks that buyers exhibit that agents take note of? Tune in to find out. Mike reminds buyers to channel their disinterested-teenager vibes! What steps could an agent take if they sense that they have limited buyer interest on an auction campaign? And what does it mean when an auction quote range changes? Cate shares her industry insights and explains some of the pivots that agents sometimes initiate during a campaign. The Trio chat about the best way for vendors to approach agent selection when selecting a property. Those who promise the world aren't necessarily the best agents to go with. Due diligence is critical and a science-based approach from the agent at the commencement should be obvious. Dave delves into the planning and the campaign calendar that agents present to their vendors. From photos to styling, advertising to open for inspections... there are a lot of important steps that agents manage. And why do agents resist pre-auction offers from some buyers, but allow others to trigger a pre-auction sale with a sharper offer? There is a reason why this sometimes happens... .... and our gold nuggets! Mike Mortlock's gold nugget: Mike chats about the benefits of buyer's agents and the skills and services they bring to the table. Cate Bakos's gold nugget: Agents deal with different vendor personalities all the time. It's OK to ask for a bit of background about hte vendor if you are wanting to understand more about what the agent is dealing with behind the scenes. Show notes: https://www.propertytrio.com.au/2024/07/29/demystifying-auction-campaigns-1/…
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The Property Trio
1 #267: Crafting a Winning Property Strategy - Navigating Asset Selection, Growth vs Cash Flow & Changing Property Purpose 47:25
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike kicks off the episode with the first listener question. Josephine writes in... she and her partner have just secured their first property with the help of the First Home Guarantee, and the purchase is about to settle. They were initially planning to reside in the property, but after discussions they are wondering if they have made the right move. They are keen to continue building a property portfolio and they are worried that they should have considered an investment first. Was it a mistake? Should they revise their strategy? And is it costly to switch the property to an investment now? The Trio unpack this dilemma... or is it a dilemma? Dave breaks down the questions and congratulates Josephine and her husband on a great achievement. They have navigated the purchase of a potential family home that could be improved/extended, getting "the big rock in the jar." Dave concedes that they have actually got the purchase mechanism in the right order. Our listener is planning on moving out and renting the property out for a while before moving back, and while there are tax considerations and critical dates to consider, their overall strategy sounds feasible. Moving back in with parents will enable them to manage their cashflow optimally and continue saving hard. Cate acknowledges their Lender's Mortgage Insurance advantage also. Dave addresses the burning technical question: Are there big implications to switching from owner occupier to investment and back again? Paying interest only and preserving all of the debt is an important consideration if they are considering this property as a stepping stone to later be converted to an investment property later on. Cate's sage words about the importance of getting great tax advice before making firm decisions that can't be reversed, resonate. Mike revels in sharing some tax details with our listeners. There are two main elements of depreciation topic; Division 40, (Plant and equipment) and Division 43 (Structural components). Both are treated differently when a borrower renovates and Mike sets out some examples of how each are treated. "You're 26 and you've got a house. You're crushing it!", says Mike. Catherine's listener question is all about the optimal configuration of a character dwelling in Melbourne. She wonders if she should be targeting two bedroom, one bathroom cottages, larger three bedroom houses or improved dwellings with ensuites. Cate details the styles, eras and historical timeframe of Melbourne's growth during the turn of the century through to pre-war. Where can you find the different categories and styles? How do they perform? Why are they so special? And what changes did COVID create to demand for Victorian cottages? The Trio discuss the variables, from price points, to the work from home phenomenon, and renovation opportunities. Yield, (cashflow) and Land to Asset Ratio are important considerations when an investor is considering layouts and configurations. Dave tackles the strategy-piece that Catherine should be considering as she devises her purchase plan for this purchase. Cate shares some A-grade period property selection tips... tune in to catch them! . ... and our gold nuggets! Cate Bakos's gold nugget: If a buyer can identify a property that has no obvious detractors to a mainstream buyer, they are poised well for capital growth. Dave Johnston's gold nugget: Getting the big rock in the jar sooner, the better. For most people it's the most expensive asset they hold, (and for some, the only asset they hold). Getting the big rock in the jar early enables borrowers to get the debt down sooner, and allows them to focus on their investment plans for retirement. Mike Mortlock's gold nugget: "It's all about strategy, and Dave and Cate are all in for the period homes!" Shownotes: https://www.propertytrio.com.au/2024/07/22/winning-strategy-and-asset-selection/…
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The Property Trio
1 #266: Market Update Jun 24 – Record House Price Expectations, Mid-Size Capitals Soar & Finding Rental Growth Equilibrium 51:07
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Mike kicks off this episode, and the Trio unpack the latest stats. Brisbane, Adelaide and Perth continue to be the star performers, with Perth taking up first place with an annualised growth rate of 23.6%. On the flip side, Cate shares her coalface findings on Melbourne's climate, citing opportunities as "low hanging fruit." Cate describes some of the interstate investor interest in Melbourne as speculative and opportunistic. Dave raises the point that interstate migration has played a key role in some of the growth data also, as have investors whose purchase and selling activity has been triggered by tax and legislation changes. While the pace of growth of rents has slowed, rents are still all positive, and with the exception of Darwin, Canberra and Hobart, our rents are still out-pacing CPI. The Trio reflect on Peter Koulizos's sage observation in past years; rents are only just catching up after a long period of limited growth. Mike wonders what the driving force is for rental growth easing. Could it be a supply and demand factor? Are more people cohabitating? Have rents reached a natural cap based on affordability? The Trio debate some of the possibilities, including re-partnering of couples following the COVID response. And what is happening with listings? We have more new listings than previous years, but our total listing figures are still below historical levels. However, the increasing number of 'old listings' in Victoria is showing signs of total supply potentially outpacing buyer demand. This month's Westpac Consumer Sentiment has some changes since last month. As Cate says, "Everybody seems to think that the next twelve months isn't looking so rosy but they can visualise good times ahead of that." Dave distils consumer sentiment into states and territories. Time to buy a dwelling index had the largest declines in the capital cities that have recorded the highest price gains. The Trio tackle a conflicting driver of sentiment; the wealth effect. Mike cites the 'crane index', which is a crude measure of building activity and supply. It is as basic as counting the cranes on the city landscape. The Trio uncover two interesting extra charts. The cash rate target vs cumulative change in national home values proves Peter Koulizos's point that there is not a direct correlation between house price growth and interest rates. The chart below shows the difference between median monthly rent value and mortgage repayment for the equivalent property. It illustrates the huge differential between the mortgage repayments and the rental payments for the same dwelling. And... time for our gold nuggets... David Johnston's gold nugget: Dave wants Core Logic do conduct a deep dive analysis into the Victorian market purchaser/investor activity following recent land tax changes. Cate Bakos's gold nugget: Cate would also love access to our various state and territory revenue offices to understand the impact of the reforms and taxes, particularly on overseas investors. Mike Mortlock's gold nugget: Mike shares the importance of buying when you are ready, as opposed to attempts to time the market. While the white noise and doomsayer stories float around in the media, it's important for investors to keep a long term focus. Shownotes: https://www.propertytrio.com.au/2024/07/15/ep-266-june-market-update/…
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The Property Trio
1 #265: Tax Time Tips for Property Investors - Avoiding ATO Scrutiny, Optimising Deductions, Repairs, and Depreciation 54:32
Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Dave hosts this week's show and Mike is in the hot seat to shed light on some of the items that the Australian Taxation Office, (ATO) is focusing on this year. Specifically, the ATO is honing in on a few key areas that often trip up property investors. What could these be? Tune in to find out... From deductible expenses to claims for repairs and maintenance, there are quite a few ways that investors make boo-boo's at tax time. Redraw versus offset: What is the difference? And how do borrowers sometimes make a mess of it? Dave shares the six key principles that he and his team share with their clients in relation to this very topic. What is the third thing that the ATO is targeting investors for? Mike details the rules around properties that are not occupied full time by tenants, and he also shares an interesting fact that a lot of people wouldn't realise. What is the implication if an investment property has been inhabited by the owner before it becomes a rental property? This applies to over 20% of investors! Repairs versus capital improvements... what's the difference? What do people often get wrong? And why does timing matter? Mike sheds light on these questions. What did Cate get wrong with her tax depreciation a few years back? Mike enjoys ribbing Cate, but it was an expensive oversight, and one that the Trio don't wish on our listeners. Mike shares the five basics that an investor needs to know about tax depreciation, from timing to feasibility, the magnitude of the return to the firm who tackles the depreciation schedule. His simple list of three triggers should give every investor a hint as to whether it's worthwhile conducting the depreciation schedule. Cate shares her tips for making tax-time a bit easier, particular for multi-property investors. .... and our gold nuggets! Cate Bakos's gold nugget: If you're already active in property, your tax affairs are probably starting to get a bit detailed. It might pay to go and see an accountant to prepare your return for you by the time your return is getting detailed . Mike Mortlock's gold nugget: We shouldn't be thinking "tax time is coming and now we have to do all this work." What systems can investors put in place to make tax time a bit easier? Mike has some great suggestions. Dave Johnston's gold nugget: If you have a property portfolio and you feel that you haven't been getting strategic mortgage advice, it may be a good idea to go and see a strategic mortgage broker. They may even identify some tax deductions that you've been missing. Shownotes: https://www.propertytrio.com.au/2024/07/08/tax-time/…
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