Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week’s episode, Dave, Cate and Pete return to deliver part two of acronyms and terms. They will take you through: Standard variable rate (SVR), Rate lock fees, P&I, I/O, Owner-occupier lending and EFT. Dave talks us through these terms and highlights a few key points of interest. Expressions of interest (EOI), ECOS, and period homes - Cate and Pete delve into these terms - Pete compares the differences between private treaty, EOI and auction campaigns. Cate sheds light on what an executed contract of sale really means. Pete details the different period and character homes and leans on Cate for some Victorian styles that are still prominent in the inner ring suburbs of Melbourne and some of our provincial regions.OTP.... not the trio's favourite type of property, but Cate shares a surprising twist -  Off the plan doesn't just refer to a brand new dwelling. For a subdivided older house, an 'off the plan' contract can still apply. How?... tune in to find out.FHOG... not what you suffer after a big night.  Dave shares with our listeners a fantastic offering posed by our States and Territories. The first home owner's grant varies from state to state and any eligible purchasers owe it to themselves to research this valuable opportunity.FHLDS. This great initiative supports those with insufficient deposit savings on hand, and Dave and his team have been able to assist many clients over recent years due to the first home owner's low deposit scheme.DHA and NRAS: Pete doesn't listen too hard to the negative rhetoric about defence housing. He emphasises that it's important to focus on the location, the returns and the term of the arrangement. OFI's, cooling off periods: Cate talks about cooling off periods, the ramifications of doing so, and the financial cost of deciding to cool off. Not for the feint-hearted.Auction quotes - how do buyers approach it? is there a 'rule of thumb' way of deciphering the real price? or is there another method? Cate explains. Pete throws cat among the pigeons when he asks about rental price quoting also, and Cate talks about the occasions when cooling off in the state of Victoria is not an option.Rental yield and terms contract - Cate talks through what these both mean, and how rental yield is calculated.Deposit bonds... not common and often misunderstood. What are they? When are they often used and how do they work? Cate and Dave canvas this unusual deposit method.EBITDA... earnings before interest, taxes, depreciation and amortisation. Dave walks our listeners through how this measure is calculated....and our gold nuggets! Peter Koulizos, the 'Property Professor's Gold Nugget: Pete recommends that buyers get some good advice on what all of these acronyms mean before they sign a contract. David Johnston, the 'Property Planner's Gold Nugget: And Dave implores borrowers to challenge their strategic mortgage brokers and advisors to explain any unknown acronyms. While they are exciting to ponder, these are industry terms that shouldn't be used for clients. https://propertyplanning.com.au/common-terms-and-acronyms-part-2-from-eois-to-deposit-bonds-we-unpack-them-all-ep-187-2/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week’s episode, Dave, Cate and Pete take you through: The difference between ROI (return on investment) and ROE (return on equity). Pete explains this critical differential and he and Dave highlight the sheer power of leveraging with a simple example. Our Property Professor shares some valuable formulae to consider in relation to the time value of money, including net present value (NPV).Gross lease vs net lease. Pete compares the differences and explains the critical things that commercial property landlords need to be familiar with when it comes to calculating and forecasting their rental returns.Finance terms: LVR, LMI, AML, VOI, valuation types (short form, long form, desktop, curbside, AVM, as if complete). Dave takes our listeners through each of these terms, some of which may be very familiar for our listeners but he has some twists and turns to shed light on for some of the lesser known acronyms and he expands on some of the detail behind many of these concepts.Valuation vs appraisal: why is this critical to understand? Even if the techniques are the the same, one is libel and one is just an opinion. Pete explores this important discretion.AIP (approval in principle), partial and full drawdowns, LOO. Dave covers these acronyms for our listeners and shares some great detail on construction lending; something particularly detailed for strategic mortgage brokers and banks, but a concept that many wouldn't necessarily know.COC and FTC : A certificate of currency (COC) is a requirement for every newly purchased property, and it's easy to arrange but often prompts a lot of questions. Funds to complete (FTC) is one of the most stressful last minute conversations when it's unexpected and raising a question around shortfall funds. Cate and Dave shed light on some of the causes of this so that our listeners can provision for the unexpected headache at settlement time....and our gold nuggets! "Don't change your job while you're going for a loan or awaiting settlement!" Peter Koulizos, the 'Property Professor's Gold Nugget: Pete suggests that any borrowers who find themselves confused about acronyms in their loan documentation or correspondence, they should ask their strategic mortgage broker or banker to explain it all. The team wish our listeners a happy 2023 with a special message each from the Property Planner, the Property Buyer and the Property Professor. Visit the show notes: https://propertyplanning.com.au/common-terms-and-acronyms-part-1-from-roi-to-voi-we-unpack-them-all-ep-186/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week’s episode, Dave, Cate and Pete take you through: 1. Our first listener question is a bit of a terrifying one.  Charlotte is looking to buy her first home next year and asked the trio if it is normal for a selling agent to offer a 'free' buyer's agent who receives substantial commission fees from the seller. Charlotte felt it doesn't seem right.... and the trio agree with her. 2. Matt is keen to access his available equity in his current investment property and asks the trio for some tips "Instead of having one six hundred thousand dollar property going up in value, you could have two six hundred thousand dollar properties, and in theory you're effectively doubling your net wealth in the future", says Pete 3. Shashank raises the question of how to manage building insurance with the rapid increase we're seeing in construction costs and the trio discuss the importance of understanding total rebuild costs, as opposed to relying on an online insurance estimate. "Did you know that 83% of Australians are under-insured on their properties?" (MCG Quantity Surveying) 4. Sarah, a Bayside resident of Melbourne asks the trio for some help with her scenario options. She and her children moved from 'beachside' Mentone to the other side of Mentone, yet she's missing her old neighbourhood and wonders what guidance the trio could offer. Should she rent-vest, buy/sell, or buy/invest. Cate says, "Follow your heart, and go back to the beachside. Buy there if you can, don't rent there. Your capital growth prospects based on the scarcity and desirability of the area will outperform non-beachside."  And our gold nuggets.... David Johnston, the 'Property Planner's Gold Nugget: Dave’s gold nugget relates to thinking through the various options before you jump in to make your next purchase.  Trying to find experts who can give you the numbers to enable us each to make an informed decision. "Our next purchase is always the most important one." Cate Bakos, the 'Property Buyer's Gold Nugget: Cate’s gold nugget is all about taking the opportunity to set your plan and arrange your finance over the holiday break so that you can hit the ground running in 2023 and make the most of the market when it reopens. MERRY CHRISTMAS EVERYONE! Wishing our listeners a safe and happy festive season. Visit the show notes: https://propertyplanning.com.au/listener-questions-and-a-great-dilemma-ep-185/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ Pete kicks off this week’s market update circles in on the fact that the 'top end of the market' is the fastest falling segment. As he points out, it's the highest 25% of property that is dropping in value the most. Generally in a downturn, it's led by the more expensive properties. Dave tackles the cyclical nature of all markets, specifically the lending markets. Banks are coming up with more creative ways to get loans approved for people. Policies enabling low documentation are starting to appear, and it proves that when it comes to lending policy, every lender is different. Cate shares with the listeners the power of FOMO at the end of the year; even in a tougher market. The dwindling supply of stock is having an impact on the supply:demand ratio for buyers in the run-up to Christmas closure. 1. Why is repayment strategy so important? 2. Is it a good idea to pay down all of your debt? 3. Hold while you accumulate!  4. How do we optimise investment deductions? 5. The amount of money we have in our offset/savings account is one of quite a few benefits of having a war chest.  6. Which repayment strategy is RIGHT? And our gold nuggets.... David Johnston, the 'Property Planner's Gold Nugget: Dave shares two valuable key things for our listeners to take away; Getting the repayment strategy right can help us retain property that may otherwise have required us to divest.Getting the repayment strategy right can also maximise our deductible debt long term, and in particular, for property that may not have originally served as an investment property. Cate Bakos, the 'Property Buyer's Gold Nugget: Cate reminds listeners that sleeping well at night is most important. If an investor is so stressed that they chose to divest a good property, this outcome is worse than losing on tax deductions and savings flexibility. Visit the show notes:https://propertyplanning.com.au/184-mortgage-repayment-strategy/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week’s market update episode, Dave, Cate and Pete take you through: Continued positive signs as home value index results show rate of decline slowsRents are still climbing in many cities, and while house asking rents have slowed somewhat, the rate of growth is still very tough on tenants. Units in almost every city are still climbing at a strong rate, particularly for Sydney, Brisbane, Melbourne and Adelaide.New listings are the lowest in years and Pete shares a frightening chart that shows our winter volumes exceeded our spring volumes.What’s the correlation between dwelling sales and consumer confidence? Consumer confidence continues to fall and house price expectations have had a significant fall.A lot less people are borrowing money for property and investors' new loan weighting is declining. The uptake of finance continues to move into negative territory and the percentage of owner occupiers vs investors is still favouring owner occupiersAmidst the bleak news, there is a sign of welcome change! The bond traders are demonstrating that they feel we're getting close to the peak for interest rate movements. The three year bond yield has declined over this past month and Dave shares the correlation between the bond yield and the cash rate.Unemployment remains low and Pete notes that it's so much easier to find a job today than in previous years.The headline inflation rate has come down! While we were all disappointed to see the cash rate move 0.25% again in December, we are relieved to see signs of easing in our inflation figures. Gold Nuggets David Johnston – The Property Planner’s Golden nugget: Dave’s gold nugget involves looking back in the rear view mirror... for those fortuitous property owners who fixed their interest rate back in 2021, they were able to lock in a rate of 2.1% in Jan for three years, and then again in June at 2.15%, only a small increase. Five year fixed rates for the same months sat at 2.69% and 2.84% respectively compared to an astonishing 6.2% today for three years and 6.59% for five year fixed rates. What a change in a short space of time! Cate Bakos – The Property Buyer’s Golden nugget: Cate’s gold nugget aims to give listeners who are out there still searching a hot little tip. Given the stock levels for 2022 are now eroding as the trading year comes to a close, active buyers can ask their favourite agents for any insights (or early access) into some 2023 listings. Visit the show notes: https://propertyplanning.com.au/market-update-nov-2022-rents-are-still-climbing-stock-supply-is-tight-and-bond-yields-have-softened-ep-183/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week’s episode, Dave, Cate and Pete take you through: Pet stats!Legislation confusion? The trio uncover legislation around pets and rental properties, and just how dramatically the states and territories differ.What is our biggest fear? Pete leads the taskforce with an overview of the top reasons why so many landlords fear pets in rental properties.Illegal dog trainingWhen saying yes to pets presents an advantage to a landlordPet rental application cover letters? You bet!“Ohhh, THIS cat? It’s my friends cat and it’s just staying this weekend”. The trio talk about this old chestnut and focus on why some renters adopt this ployHow expensive is it to clean up after a bad pet-experience?What pet situations ring alarm bells? Pets pose a grave concern for a landlord, (or worse still, some pets and activities are illegal).How do property owners tackle a surprise pet in an investment property? Cate and Pete share their best tips Cate Bakos, the ‘Property Buyer’s Gold Nugget: Cate reminds listeners that the risks of scaring a tenant into driving pet ownership underground can end in tears. Cate’s approach is to be open about being open to pets so that pets are actually disclosed on the application. She also recommends capturing the age, breed and behaviours of a pet when asking tenants for pet bio’s. Peter Koulizos, the ‘Property Professor’s’ Gold Nugget: Pete adds that by encouraging pet owners, landlords also widen their market. Dave also asks for some good advice on managing an unwelcome neighbour’s cat…. Visit the show notes:  https://propertyplanning.com.au/182-pets-and-rentals/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Market updates – comparing Australian property and Abu Dhabi’s property differences, NSW first home buyer optional stamp duty is now live! And Crypto currency risk bounces back onto the market update playlist. 2. This may surprise our listeners, but the first home should be selected with investment potential in mind. 3. Bigger is better when it comes to land size for the first timer, but location counts for everything. 4. Oldie, but a goodie! How old is too old? Cate and Pete dare to disagree… but the most important tip for listeners is to remember the importance of “land to asset ratio”, the trio’s golden rule. 5. Leave the luxe listings off the list!Grand kitchens, bespoke bathrooms… Pete takes us through all of the reasons why ‘luxing up’ an investment property is a terrible idea. 6. Dream home versus investment property – why we need to look at each with such different lenses. “Would I live in this place?” is usually the wrong question for an investor to ask, unless they are representative of the target tenant. 7. The best pool is someone else’s pool! As Cate often says to her clients, pools come with all kinds of responsibility and maintenance/safety issues. 8. Are larger dwellings the holy grail for capital growth? 9. Is it ok to luxe-up your dream home? Expensive and delicate features should be left for your dream home, not your investment property. 10. … And our gold nuggets! Pete shares his well-loved pearl of wisdom, “If you’re looking to make money, it’s about location, land and looks!” Dave also share a have a plan for the big rock in the jar, (i.e. the family home). This can help investors finding themselves feeling financial pain or scrambling to divest their acquisitions down the track. “If you fail to plan, you plan to fail.” Visit the show notes: https://propertyplanning.com.au/181-first-home-vs-forever-home-dream-home-vs-investment-what-are-the-trade-offs-and-key-considerations/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Our first listener question, which is an intriguing one. Our seasoned investor lifts the lid on some of the aspects of asset selection in relation to pinpointing outperformance capital growth. 2. Blue chip suburbs do in fact outperform over a longer period of time, but it’s all about the time horizon 3. Money grows where money goes 4. Show me the money 5. Data is King 6. Timing the market versus time IN the market 7. Should I stay or should I go now? 8. Why have units in Melbourne been so disappointing? And will they spring back? 9. Target tenants 10. Talk to your planner! 11. And… the gold nuggets Dave’s gold nugget relates to our second listener question, and the old chestnut, “should I hold or should I sell?”. He reiterates the importance of questioning “what else could I do with the money?”, and while it’s a huge decision for so many, Dave reminds us that we should be clear once the decision is made, and JUST DO IT. Cate’s gold nugget circles back to the COVID woes, and the impact of reduced rent and/or rental eviction moratoriums and she recommends that investors refer back to their property manager to get a clear understanding of the current market rental expectation so that they are in sync and commending the correct rental amount. Visit the show notes: https://propertyplanning.com.au/listener-questions-is-electing-a-higher-priced-a-grade-property-a-formula-for-disappointment-long-term-what-do-you-do-with-an-underperforming-asset-that-promised/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaIhttps://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Positive signs as home value index results show rate of decline slowsRental market continues to struggle as increasing rents continue, particularly for unitsSpring listings still slow, bucking typical seasonal trendsWhat’s the correlation between dwelling sales and consumer confidence?How savings and YOLO factor into inflationHow job security is impacting consumer sentimentNew lending continues downward trend, however personal loans on the riseWhat does the bond yield say about where interest rates will end up?RBA revises inflation cap And of course, our gold nuggets! Cate’s gold nugget relates to the buyers out there who could apply market segmentation to the options out there, and she suggests how some of these segments could be bought advantageously, namely first home buyer stock and land-banking sites. Both of these opportunities have presented as these two buyer contingents have reduced their appetite in the current environment. Dave’s gold nugget hinges around his sense that the property market is becoming a leading indicator, and he shares some great examples of how buyers can be savvy when it comes to taking advantage of the conditions we’re navigating. Visit the show notes: https://propertyplanning.com.au/market-update-oct-2022-regions-fall-faster-than-capitals-more-pain-for-renters-as-yields-catch-up-construction-finance-drops-off-a-cliff-yolo-hampers-rba-inflation-tactics-more-ep-17/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. The conundrum– Can we purchase the long-term home without selling any of our properties and retire in 20 years relying on passive income? This case study follows the journey of Andrew and Bec, podcast listeners in their early to mid-thirties who submitted their scenario to the team to unpack via the Property Planning platform. They started their property journey early and each own a property, one of which they currently live in. On the horizon, they would like to purchase their long-term home, start a family, and retire comfortably in 20 years. Would they be able to do all of that without selling a property? 2. Their portfolio and goals The trio discuss Andrew and Bec’s goals and their current property portfolio, one ofwhich is undergoing a construction. They have worked hard to get themselves in a great spot, and after the construction is complete, their portfolio will be worth $2M and they currently have $300,000 in savings. Not bad for a couple in their 30’s. Ideally, they would like to be earning $150,000 in passive income from their investment properties ($75,000 in today’s dollars). The key questions to unravel were: when do Andrew and Bec purchase their future home? Do they need to sell any properties to do so? When can they reach their passive income target of $150,000. Can they retire in 20 years time? Can they do all of this AND start a family as well? 3. Modelling the scenarios Five scenarios were modelled for Andrew and Bec, showing the sequential progression and timeline of decisions to be made and actions to take in order to reach their goals. The trio sink their teeth into the financial outcomes. Spoiler alert! Their passive income goal is reached but 1 year late. Given the laundry list of goals, we think this is a great outcome. Tune in to find out the threekey steps that Andrew and Bec need to take to get there, plus how having children willimpact their financial goals. 4. So you’re thinking of starting a family, who is going to scale back work? There’s no doubt that having children is an important life goal for many Australians. But let’s be real, along with that bundle of joy come cash flow implications as kids are expensive and one partner normally scales back work for a period of time.  In this particular scenario, Bec would like to scale back work permanently to 2 days a week in the first 6 years and 3 days a week thereafter. But that’s not the case for all families. The trio discuss how different scenarios can be modelled to make key decisions around employment when starting a family: which partner will scale back work, by how much and for how long? Visit the show notes - https://propertyplanning.com.au/property-planning-case-study-7-can-we-keep-our-two-existing-properties-purchase-our-long-term-home-start-a-family-and-still-retire-on-150k-p-a-passive-income-ep-178/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Beware of changing borrowing capacity when on the property hunt With monthly cash rate increases, borrowing capacity has been slowly dwindling as lenders update their affordability calculators. However, the ‘Household Expenditure Measure’, a measurement for scrutinising living expenses, is also increasing to reflect the higher cost of living due to inflation. For those who are hoping to purchase at the limit of their borrowing capacity, it is imperative that you are checking in with your strategic mortgage broker to confirm affordability before you sign any contracts. 2. Shared equity scheme for Victorian’s announced The Labor party in Victoria have announced a shared equity scheme to help buyers get into the market. Interestingly, it is not limited to first time buyers. The scheme allows for purchases in metro Melbourne and Geelong up to $950,000 and up to $600,000 in regional Victoria, with the government assisting in purchasing up to 25% of the property. But take note, they will also expect 25% of the gain when you sell! We recommend to those who are interested to understand all of the requirements and fine print. 3. Auction clearances indicate further green shoots The latest auction clearance rates show some positive signs, which for the third week in a row have been holding steady above 60%. With volumes continuing to rise and the recent rate increase representingonly 25 bps, the market is showing resilience with buyers trickling back in. Our best advice from our own journeys 1. Reflecting on our own purchasing journeys, what is our most solid-gold nugget of wisdom that we’ve gained and feel compelled to share with others? The trio share the most important lesson they’ve learnt from buying and investing in property. Although Cate, Dave and Pete have followed vastly different paths on their property journey, the advice is very similar – get a foot in the property door as early as you can and hold on to property as long as you can. The trio discuss the circumstances and key events that led them towards this realisation. 2. What surprised the trio about the simplicity of their retrospective gold nugget? Get in early and hold as long as you can. Simple, right? Whilst it might seem obvious now, there are many circumstances across a lifetime that can challenge this simple proposition and test your nerves. The trio share hot tips on how to keep it simple and stick to your guns. Action and patience is key! 3. What positive role models did the trio learn from in their earlier years? The trio discuss the investors that they consulted and learnt from at the start of their property journeys. The key is to mix with people who have had success, ask questions, absorb the lessons and work out what is the right strategy for you. 4. Has the evolution of market conditions, lending conditions and social pressures changed how this gold nugget could work in today’s climate? The trio look in the rear view mirror at the property landscape, how it was back then vs how it is now. Does the change in market, lending and social conditions change the advice? Tune in to find out. Visit the show notes - https://propertyplanning.com.au/the-best-advice-from-our-own-journeys-ep-177/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Correlating listings and property prices – watch this space The Property Professor shares research that he will be conducting on the relationship between listings and property prices. From a supply and demand perspective, whenthere is an increase in listings for sale, there should be a corresponding drop in prices. Are listing numbersa leading indicator? We’ll be watching keenly for the results in January 2. The market picks up – more green shoots emerge The Property Buyer shares her experience on the ground, hitting the pavement and talking to real estate agents. What can be seen is an increase in late spring listings, buyers attending inspections and competition levels in general. With the 0.25% increase in rates, somebuyers have decided that the slow down in the rate of increase may signal a turning point. 3. Clouds on the horizon? US rate movement The Property Planner shares news from the world economy, where inflation in the US continues to grow, with many expecting the US to raise the cash rate by 70 bps. This could potentiallybe bad news as other nations try to stay inline with US rate movements to ensure their currencies don’t weaken against the US dollar. Here’s hoping that Australia can hold the line on 25 bps increases, as Australia’s economy is much more sensitive to rate increases due to the majority of variable rate loans. Amenities 1. How far is "walking distance?" There is no hard and fast rule and it differs from person to person. But when assessing the quality of a location, some boundaries and measurements need to be put in place. The trio discuss the ideal walking time and distance for amenities. 2. Walk score – what is it and how to use it Walk score is a great resource to measure the walkability of an address. You simply type in the property address and get a score out of 100. Points are awarded based on distance to amenities in various categories such as dining, shopping, errands, parks, schools and more. Visit our show notes for the link to this free resource. 3. The amenities that you don’t want to be too close to While being close to some amenities can be really valuable, there are others that you want to be a reasonable distance away from. The trio discuss which amenities to distance from and by how much. 4. What to target as an investor – don’t let personal preference get in the way Valuing amenities can be a very subjective task, as each person has their own personal preferences. For some, a school nearby can be a useful amenity and for others, it can be a nuisance. It’s important to target properties near amenities that at least 8 out of 10 people will be happy with. 5. Which amenities are most important to the trio, personally and from a professional perspective? Cate, Dave and Pete share the amenities that they value the most from a lifestyle and professional perspective. 6. Which amenities are the most important in the cities around Australia? The trio discuss the critical amenities to target in Adelaide, Melbourne and Sydney. Knowing your market is important, as desire for access to an amenity can vary from city to city. It is also imperative to think about the target tenant and what they would desire from a location. Visit the show notes: https://propertyplanning.com.au/amenities-which-are-important/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1 Property market falls decelerate over September For the first month, the rate of price decline has decelerated, which may be an early sign that the market has passed through the worst of monthly falls. Other early indicators are auction clearance rates picking up and stock levels remaining low. With the RBA putting the breaks on rate increases, the trio discuss what’s likely on the horizon. 2 Peak to trough decline The current peak to trough decline nationally sits at -4.8% since the peak of April 2022. The trio discuss the peak to trough falls for the capital cities and state regions. Note that regional WA is still below it’s peak 14 years ago, a good reminder to be sceptical of property spruikers and do your research prior to entering any investment decisions. 3 Brisbane land tax has been repealed, but has the damage already been done? Rents for houses in Brisbane are up 14% over the year and vacancy rates are sitting at a low of 0.7%. On a positive move, the land tax proposal was scrapped, (thanks to our friends at PIPA, PICA and REIQ). However, Brisbane has already sustained some pain, with many investors selling up or in the throws of doing so. 4 Where is the big picture on housing? The trio discuss government and regulator decisions that have made it harder for landlords and investors. Without the big picture of understanding and deciding what is an appropriate mix of ownership between owner occupiers and investors, and how many investors should be private investors, the approach to housing reform is like throwing darts blindfolded. In positive news, the rate of increase in rents was the lowest it’s been in 10 months, which signals that rental growth is tapering. 5 Listings languish Spring is typically the time of the year that an increase in stock occurs, but the level of listings has actually dropped and is close to the 5 year average. With interest rates on the rise and prices declining, vendors are holding off thinking that now is not a good time to sell. Hobart and Canberra are bucking the trend, with listings at 71% and 41% higher than this time last year. The trio discuss what this means for value growth and dive into distressed listings. 6 House price expectations turns around In an interesting turn of events, the house price expectations index has ticked over 100, after dropping below 100 for the first time since September 2020 last month. Victoria and Western Australia are most positive, with readings of 108 and 106 respectively. This should improve further due to the RBA slowing down cash rate rises and is another positive green shoot in the month of September. 7 Investors continue to bow out while first home buyers jump in Over the month of August, investor lending fell by 4.8%, while owner occupiers remained resilient. First home buyers increased by 7%. Personal loans also increased by 9.5%, which is a concern that people are funding something that they don’t have the money for. David shares what bond markets are saying about where the cash rate is likely to end up too. 8 Unemployment remains steady The trio discuss the unemployment rate and what is on the horizon with new migrants and the scrapping of mandatory isolation for Covid-19. Visit the show notes: https://propertyplanning.com.au/market-update-sep-2022-green-shoots-emerging-price-falls-decelerate-auction-clearances-up-consumer-sentiment-improves-solving-housing-policy-and-more-ep-175/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Listener questions This episode is dedicated to answering questions we’ve received from our listeners. If you’ve got a burning question that you’d like to ask the trio, submit your question online here. (AML to add in the link) 2. Can I access the First Home Owner Grant if my partner has already accessed government assistance? My question is, if I'm buying a property on my own but am living with my partner who has bought a property and received the First Home Buyer Assistance Scheme (transfer duty reduction) already, can I also still qualify for a first home owner grant myself? 3. How do partners and de facto relationships impact eligibility requirements? The trio discuss the Victorian SRO criteria for receiving the First Home Owners Grant and how partners must be disclosed on applications, even if they will not be on the property title. But what if your finances are separate, can a government still find out? Tune in for the answer 4. Is there a way you can get around it? The trio discuss a potential pathway to explore in order to receive the grant. However, take note! It’s best to run the scenario by the SRO or a professional for their advice and don’t forget to get it in writing. 5. Is now a good time to subdivide and build our dream home? We owned a unit in Thornbury and purchased an entry point house in Reservoir during the pandemic. The block is 536m2 and we are looking at subdividing the block and building a 3br townhouse at the back to live in as our family home (2 young daughters). I would like to explore whether the next 12 months would be a good time to commence the planning and building process for the back town house or whether the current climate with building materials and inflation mean it’s a bad time to subdivide and build? 6. As with any major decision, ensure that you are thinking about the longer-term In true Property Planner style, David poses some key questions to our listeners about their long-term lifestyle plans and understanding how a subdivision and family home fits into the overall plan. “How long will this home meet your lifestyle needs? “, “Are you sure you will be happy living in the back property for 5 to 10 years if that is required from a financial standpoint? “, and “Will you enjoy living next to your tenants?“ are just to name a few questions to ask. 7. What are your thoughts on Point Cook as a location? I'm curious about the neighbourhood Point Cook in Melbourne. It seems to have plenty of amenity and has been suggested as a future 2nd CBD hub for Melbourne in some articles I came across. I also think it's great that it's one of the most multicultural neighbourhoods in Australia. What are your thoughts on it as a neighbourhood to live in. Are there any areas you find better than others? 8. Investment and lifestyle analysis for Point Cook If our listener loves Point Cook as a home and community, then that’s enough reason to purchase a home there. However, Cate shares some key points for Point Cook which could make it a problematic investment. Visit the show notes - https://propertyplanning.com.au/listener-questions-bought-off-the-plan-my-situation-rates-the-market-is-worse-i-need-the-fhog-but-moved-in-with-my-partner-help-is-it-a-good-time-to-subdivide-suburb-analysis-and-mo/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. The conundrum – can we stop work and live off our portfolio before we reach preservation age? This case study follows the journey of Craig and Jane, podcast listeners in their mid-forties who submitted their scenario to the team to unpeel via the Property Planning platform. They have already made some fantastic decisions on their investment journey, such as almost fully paying off their home, and purchasing three investment properties. They were wondering whether they would be able to scale back work or stop completely in 8 years time, which is 7 years before reaching preservation age and live off their passive rental income before they can access their superannuation. Or would they need to sell a property to live comfortably? 2. Their portfolio and goals The property trio discuss Craig and Jane’s goals and their investment portfolio that they’ve worked hard to build - consisting of 4 properties, super and shares. Ideally they would like to be earning $100,000 passive income from their investment properties, to have enough room in the budget for annual family holidays with their two (currently teenage) kids. 3. Modelling the scenarios Four scenarios were modelled for Craig and Jane which is how many each Property Planning platform allows per user, to illustrate their varying options and provide contrasting pathways forward. The trio sink their teeth into the financial outcomes, how scaling back at different ages, working less hours, selling or holding and other factors impact the ultimate financial outcomes in to their retirement years. 4. The power of mortgage strategy The trio highlight the importance of mortgage strategy, as demonstrated in the modelling. A simple change shaves 7 years off of reaching passive income of $100,000 from property. Tune in to find out how. 5. Should I work longer, scale back sooner but work more days, or just stop all together and everything in between? The trio discuss how various pathways for the couples timeframe and amount of working hours can make a significant difference to your bottom line, retirement age, or flexibility age for when you start to scale back your working hours. Learn how these tweaks inside of the Property Planning software can help inform and educate your decisions rather than flying blindly! The surprise twist to make a significant positive change to this exciting, real life case study might surprise our listeners. Visit the show notes - https://propertyplanning.com.au/property-planning-case-study-6-listener-scenario-on-the-property-planning-platform-can-we-retire-in-8-years-live-off-our-portfolio-until-we-hit-preservation-age-ep-173/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. How the different sectors of the market react to price movements Pete shares with you how the most expensive, middle and lowest sectors of the market in both capitals and regional centres react to market movements. Check out our show notes for an interesting graph that shows it all. 2. The lure of off-markets Cate shares a conversation that she had with an agent who is very experienced about her take on off-market properties. While 95% of them are disappointing, there is the odd gem to be found. Tune in to find out how you can capitalise on these opportunities. n. 3. The Property Planner updates his predictions for the next RBA rate movement Due to further inflationary developments in the US, money markets have changed their predictions for the next rate increase to be 50 basis points, rather than 25. The top 7 things that buyers get wrong – Part 2 #3. Mixing emotion with pragmatism when it comes to investing The trio discuss some of the biggest mistakes that can lead you astray when you listen to your heart instead of your head when investing. What are the causes of emotional decision making and how can you detach yourself to make pragmatic decisions? Tune in to find out. #4. Low ball offers and a quest for a bargain (instead of a quality property) One of the critical mistakes is chasing the property bargain unicorn. The reality is that if a property is heavily discounted, there are some issues that the purchaser has to deal with. #5. Being impatient with time The trio discuss why property is a get rich slow scheme and the errors that buyers fall into when they start to feel impatience creeping in. #6. Counting cents instead of dollars When does scrimping and saving lead to mistakes? The trio discuss the items that you should dig into your wallet to address. #7. DIY’ing the things that you shouldn’t Renovations are tricky to get right and some work even requires permits and certificates. Before you role up your sleeves and get out the paint brush, take a listen to the things that potentially you should be getting a professional to do. Visit the show notes - https://propertyplanning.com.au/the-top-7-things-property-buyers-get-wrong-part-2-ep-172/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Rate of decline speeds up in most capitals Over the month of August, the rate of decline has increased, while in a surprise move, Melbourne’s decline has slowed. Shockingly, Brisbane has jumped from –0.8% in July to –1.8% in August. No doubt due to proposed changes to land tax, flooding and the previous heat in the market. The trio discuss the trough to peak for the capitals and what’s likely to happen next. 2. Rental market - Brisbane land tax is likely to make the rental situation worse The trio canvas the proposed changes to land tax in Queensland which will likely cause more than a few investors to abandon the Queensland property market and sell up to first home owners, hence intensifying the rental shortage. The greatest risk is that other states will jump onboard and aggregate land tax. 3. The outlook for vacancy rates Supply remains limited for rentals, with the tap of overseas migration just starting to be turned on. With new dwelling constructions starting to fall, the outlook is fairly grim, particularly given the Australian Government has increased the target figure for new arrivals. 4. Listings to increase over spring Supply of stock on the market is set to increase, with covid in the rear-view mirror and spring time on our doorstep. Old (180 day+) listing numbers have started to climb, showing that buyer FOMO and desperation have calmed. Total listings are tracking above the 5-year average, a sign that vendors want to sell before the market drops further. The trio discuss how listings and monthly growth our closely interrelated. 5. Consumer sentiment The house price expectations index has dropped for the first time below 100 as consumer sentiment overall takes a hit. Victoria remains the most pessimistic, with a 17.7% drop over August from 99 to 81.6. The trio discuss what this could mean for inflation. 6. Finance continues to fall over July Lending activity continues to slow and mostly investors and business construction has been impacted. The bond yield spiked after the US Federal Reserve Chairman spoke and indicated that the US will do whatever it takes to curb inflation. However, expectations have settled again at 3.1% for the cash rate and we are on our way to hit a 3% cash rate towards the end of the year. 7. Victoria leads the unemployment decline but wages are not taking flight Unemployment drops again to 3.40%, while Victoria leads the pack with the lowest unemployment on record at 3.10%. With the low level of unemployment, it is interesting that wages are not skyrocketing. The trio discuss the delicate tight rope walk of increasing wages, as wage growth must stay under control to tame inflation. Wages should increase, but not at the same rate. Visit the show notes - https://propertyplanning.com.au/market-update-aug-22-why-spring-may-provide-the-best-buying-window-of-the-cycle-why-brisbanes-decline-increased-dramatically-melbournes-slowed-despite-leading-negative-s/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Is the RBA oversteering the inflation ship? The RBA yet again ups the cash rate by another 50 bps, but how effective will it be at tackling inflation when non-discretionary items continue to increase in price. While interest rates don’t have a direct correlation to property prices consumer sentiment certainly does and it’s a scary time for many, now that the cash rate is over 2% above it’s lowest point. Dave shares some learnings from our first cash rate cycle in a decade. The 7 things buyers get wrong 1. What are the tell-tale signs of insufficient planning? Cate shares with our listeners the alarm bells that ring when insufficient planning is in the air. Are you short-cutting your plans? 2. What is an appropriate amount of planning time a buyer should invest in their search? Buckle up, it’s not going to be a walk in the park (if you do it properly). The trio discuss the time and energy that goes into a property search. Think about how much time goes into planning a wedding or a holiday and the relative cost compared with purchasing a house. 3. What are the consequences of insufficient planning? The trio dive into some of the worst outcomes that can arise from failing to plan. 4. What are the big ticket issues with overconfidence in your ability to renovate TV is partly to blame, renovations look so simple when you’re comfortable on the couch with a glass of wine. But don’t be fooled, it is not easy. The trio discuss the reluctance to pay for services like painting that you feel like you could do yourself. But, in the end, it may be worth the cost. 5. What happens when renovations go wrong, what are the options? The trio discuss how to plan for renovations to ensure the funds don’t run out in the middle of the project and what happens when the renovation pool runs dry. Visit the show notes - https://propertyplanning.com.au/the-top-7-things-property-buyers-get-wrong-part-1-ep-170/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. US not slowing down with rate rises In the US, the Fed Chairman spoke with some strong words about not making the same mistakes as in the 70’s, with taming inflation and will go as hard as they need to with rate increases. There was some talk bubbling that the US will slow down with rate rises, but that’s been sidelined and the share markets have responded. Other Western nations tend to follow the US fed, so there could be more pain ahead in terms of rate rises than markets had expected in the last month or two. 2. Auction volumes – Melbourne As we come close to the grand final public holiday, auction volumes are tending to slow down as vendors don’t like to sell on the long-weekend. Activity is expected to ramp up and get hefty in October. But watch this space, we may be in for a super Saturday on the 17th of September. 3. All major capitals are heading in the same direction (down) Looking at day on day change, all capitals are now on the downward swing. But this is normal for the property market. Looking back over the last 30 years, ups and downs are par for the course. Houses vs units 1. Regional areas vs capital cities Generally speaking, houses have outperformed units and capital cities have outperformed regional loctions. However this is not the end of the story. Capital cities suffer from greater fluctuation in prices. Which is an important reminder not to get too caught up in the short term. Will regional houses catch up with capital city units? Watch this space 2. Houses vs unit growth in our capital cities from March 2002 to December 2021 Which cities have been the winners and which city bucks the trend of houses outperforming units? Why is unit growth extremely low in Brisbane and Canberra? The trio sink their teeth into the data. 3. How have the Property Professor’s top suburbs performed? Peter revisits the suburbs that he tipped to be top performers. Which ones have outpaced the growth of their city and how have units fared compared with houses? Visit the show notes - https://propertyplanning.com.au/houses-vs-units-capital-growth-performance-in-capital-cities-and-regions-over-the-last-20-years-and-which-locations-have-units-outperformed-houses-and-why-ep-169/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. A warning to investors intending a demolition For those investors who are looking at run-down properties with plans for a future development, it is important to consider the minimum standard of living legislation. If you purposefully purchase a home that needs a lot of work to make it liveable for tenants, you may be over capitalising when the long-term intention is to put a bull-dozer through it. 2. Smoke signals from China Unlike the rest of the world, China has just reduced interest rates to try and stimulate the economy. This is due to some prevalent risks building in the Chinese economy, such as developers going under, Chinese citizens who have refused to pay mortgages because their property has not yet been built and further covid lockdowns. This will have a big impact on Australia and the rest of the world economy. To top it off, China is heading towards their next election... watch this space. Listener questions 1. To buy or not to buy? Properties with a history of murder I’ve recently came across with a property which has history of murder. 2017. As I keep hearing property is about numbers. And the numbers are good as less buyers want it. My question is would you buy this kind of property where they have “dark history” which will eventually fade in the long run? Any Thoughts on this? 2. What kind of asset mix is best for boosting serviceability & why this may not be the first question to answer Love the podcast! Thank you for taking the time out of your busy lives and putting the show together. My question is related to financing property acquisition. Capital growth is the holy grail for property investing but it is only one side of the equation. Serviceability is the other. If you can’t service your debt, all the equity from capital growth is inaccessible. What kind of residential property asset mix should an PAYG investor consider in their property planning to boost serviceability to continue their investment journey? Does a happy intersection of capital growth and rental yield exist? 3. How will the changes to QLD land tax impact investors? What do you think will be the effect of the new changes to Qld land tax. Effectively, you will now be penalised on your Qld land tax if you own properties outside Qld. My own calculation due to my extensive holdings in all states is that this has a horrendous impact on large investors. I now will consider selling some Qld properties. I believe it will have flow on effects, where there will be less investors in Queensland, and rents will rise even more dramatically again (lower vacancy rates). how long do you think it will take for this impact to flow through and the Queensland government will be forced to look at this? The unintended consequences, I believe will be severe. Visit the show notes - https://propertyplanning.com.au/listener-questions-property-with-a-dark-history-to-buy-or-not-to-buy-what-kind-of-asset-mix-is-best-for-boosting-serviceability-why-this-may-not-be-the-first-question-to-answer-and-more/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. How to keep an open mind when it comes to shortlisted properties Cate shares with our listeners her hot tips for shortlisting properties to inspect. The favourites at the top of your list may not be the ones that make the short list. It is critical to see the properties in person. 2. Government opens the gates on overseas migration Pete shares that the government’s reported figures for overseas migration to Australia are about to increase significantly. This will likely put a pricing floor under the property market, as all the new entrants will need a place to live, putting pressure on rents also. Those who can obtain permanent residency quickly will be looking to buy. Watch this space... 3. Some exciting news from the Property Planning Australia team – introducing the Property Planning software tool Property Planning Australia have thrown away the excels and word documents and now have the ability to provide a tool we can put into the hands of our clients and other Property, Mortgage and Financial professionals. The tool allows you to model up to 4 different Property Plan pathways factoring in all your existing cash flow, income, expenses and future goals right through to retirement, then measure the financial outcomes against your goals. For our listeners who would like to be able to build their own Property Plan with the support and guidance of a property or financial specialist and then be able to then take the reins to tweak or update your plan ongoing, we encourage you to reach out to Property Planning Australia via our website enquiry page. Case study 1. The conundrum This case study follows the journey of Nick and Rachel, who wanted assistance determining their property pathway and how best to use the cash from the business they have just sold. They wanted to purchase an investment property right away but also want to spend around $400,000 on renovations to evolve their home into one they can enjoy and that will meet their needs in the long-term. 2. Introducing Nick and Rachel David shares Nick and Rachel’s key circumstances and of course, their lifestyle and property goals which are driving their decision. Nick and Rachel are a couple in their early 30’s, with two young children, living in one of Australia’s major capital cities. The recent sale of a business has presented some exciting options, and they also expect to receive an inheritance in of around $1,000,000 in around another 10 years which they want to factor into their long-term plan. Finally, they both enjoy working, but they also want to create further flexibility for themselves so they can scale back their employment to 4 and 3 days per week well before retirement. 3. Modelling the scenarios Three scenarios were modelled for Nick and Rachel, to provide clarity on their key questions. When do they purchase their investment property? What should the strategy be in terms of price point and location? When could they complete the renovations on their home? Can they achieve their retirement income goals of $100,000 passive income through property? Can they scale back work earlier? The trio unpack the scenarios. 4. So, what did they choose to do (and what was the compromise)? Tune in to find out which scenario Nick and Rachel went for. Were they successful and what was the compromise?

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. The latest home value index results The housing market is now in its third month of decline, nationally dropping by 1.3%, which is comparable to the onset of the GFC in 2008 and downturn in the early 1980s. Sydney is now showing the sharpest value falls in almost 30 years, while Brisbane moves into negative territory for the first time since August 2020. 2. Median values are not all what they seem David shares some interesting facts about capital city housing markets, which means that listeners should be cautious when looking at median dwelling values between capital cities. It’s much more reliable to look at the median value for houses and units separately, but even then, the data can be skewed. The trio explain why. 3. Rental markets remain extremely tight Historically, capital growth and rental growth would stay relatively aligned. However, the property boom in 2021 has meant that capital growth has significantly outstripped rental growth and is now going through a period of correction. Rents are likely to continue to run for some period of time, while our property values are still exhibiting a decrease, which in turn, is increasing rental yields. 4. Distressed listings on the rise Vendors in distress have increased in seven out of eight states over July. Over the year, the biggest change can be seen in Hobart with a 50% increase in distressed listings, however they are rising from a very low base. 5. Consumer sentiment continues to dive, but is now the best time to buy a dwelling? The trio discuss the latest consumer sentiment data, which as expected is reducing towards 100 for ‘house price expectations’ and is expected to go below 100 in the next month or so. However, the time to buy a dwelling index is showing the early signs of an upswing as home values become more affordable. 6. Lending falls at the fastest rate since May 2020 Total lending fell by 4.4% over June, with first home buyers taking the biggest hit, declining by 10%, the largest decline in 3.5 years. Owner occupiers remained the most resilient, falling by only 3.3%. In other news, certain banks have lowered their 3 and 4 year fixed offerings, as bond yields have peaked and now show a decline, indicating that the expectations for where the equilibrium cash rate will sit has reduced. 7. Unemployment reduces again The jobless rate has reduced to 3.5%, as businesses desperately look for new employees. There is a growing push to enable retirees to return to work without impacting their pension entitlements to alleviate the pressure ... watch this space. Turning the tap on for immigration is also expected to have an impact. In June, the largest amount of student visa applications ever on record was processed. 8. Are we done with 0.5% monthly rate increases? As the cash rate moves towards 2%, we’d hope that as the rate reaches closer to equilibrium, the RBA will slow down on the magnitude of rate increases so as not to over-steer. The trio are hopeful that the we’ve had the last 50 basis point increase, but only time will tell. David shares the news from New Zealand, which was the first nation to increase the cash rate in October 2021 and NZ’s cash rate currently sits at 2.50% Visit the show notes - https://propertyplanning.com.au/market-update-july-22-are-we-entering-into-the-best-buying-conditions-in-this-cycle-have-we-seen-the-last-0-5-rate-increase-why-rents-are-playing-catch-up-how-median-values-can-be-distort/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. How do rents stack up against inflation Peter shares his research on rental returns over the last 10 years, which increased nationally by 11% for all dwellings. Compared with inflation, which increased by 25.6%, it's a good reminder of the benefits of capital growth focused investment properties. Check out our show notes for the growth rates of rents for each capital city. 2. Closing in on the neutral cash rate Whilst opinions on where the neutral cash rate sits are many and varied, Cate reminds our listeners that we must be getting pretty close. Although economists don't have a crystal ball, no one is expecting the cash rate to reach 5% and the RBA is trying to reach the point of equilibrium quickly. Once the RBA slows down on rate movements, it's like that buyers and particularly those who have put their purchasing plans on hold to wait out the uncertainty, will jump back into the fray. Nothing encourages opportunistic buyers like a slow-down in rate increases. 3. Economists revise down their predictions on the neutral cash rate David shares the early signs of economic inflection which could suggest that the neutral cash rate is may likely eventuate at 2-2.5%. As little as two months ago, money markets were predicting the cash rate would reach as high as 4.5%, however most bank economists now think that it will rise to 3%, with CBA being the most conservative at 2.6%. Money markets have also spiked in July by 5-6%, which brings positive news. Whilst the US is in a technical recession, an argument could be made that they are not actually in a recession due to the very low unemployment rate and other factors. It is also important to note that our technical definition of what constitutes a recession varies from that of the US. The extra mile buyers should go when shortlisting a property 1. Listener Question: "A glass half full question ... as we transition into a Buyer's market, what steps can investors take to be positioned to take advantage of an opportunity that might present itself" The trio start the episode by answering a question from a podcast listener and share their tips on how to get purchase ready, to strike when the iron is hot! Property is a long game and we do need to sometimes remind ourselves of this. 2. What are some of the things we can check online before we even book an inspection? The trio share their hot tips on how to make the most of your internet searches when doing your online research. 3. What things should you be looking out for immediately when inspecting in person? Cate shares with our listeners what to look out for when you visit an open house. Take note, listeners should use more than just their eyes when inspecting the dwelling! Pete shares the aspects of the land to keep an eye out for and why you should stick around for the whole inspection. 4. How to assess a 'workable' floorplan vs a complete overhaul floorplan An illogical floorplan can be a huge pain, not to mention the financial commitment if you want to make adjustments. The trio discuss how to assess the floorplan, which could save you thousands on a planned renovation. However, the floorplan is not everything. For listeners who want to get into a particular location, especially first-time buyers, dealing with a less than ideal floorplan or a more run-down house could be the trade off to get into the best location. 5...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Weekly Market Updates 1. Adelaide market losing steam Pete reports that there are not as many people at auction and less offers coming in prior to auction. Whilst the Adelaide market is still on the rise, it isn't increasing at the same rate as a month and a year ago. CoreLogic figures released this week show 0.4% increase over July. 2. Rental squeeze Cate shares an interesting article that she read on the weekend, highlighting the Victorian rental reforms to be a failure and go too far. With the pool of rentals eroding, vacancy rates reducing and rents on the upward trend, are the reforms pushing investors out of the market with their onerous requirements? 3. Where is the neutral cash rate? Dave shares his updated predictions on where the neutral cash rate could lie (2-2.5%). The current cash rate of 1.35% is above the level of June 2019 and almost double the pre-pandemic level. With a 0.5% rise expected today, the new 1.85% cash rate will be the highest since July 2016. This sparks concern that the RBA is going too hard and too fast. Inflation is a concern, but not at the expense of household wealth and jobs. Figures from Westpac show that while 29% of borrowers are a year ahead of repayments, 50% are less than one month ahead. Visit the show notes - https://propertyplanning.com.au/analysing-regional-locations-what-investment-principles-can-be-gleaned-from-the-highest-performing-regions-in-each-state-comparing-capital-city-vs-regional-performance-from-2003-b/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Pick your advisors wisely! Cate shares a recent experience of working as a Buyer's Advocate for a friend. The moral of the story? When you're working with a professional, if you know their work and you trust them, you can get a great outcome, because speed and swift decision making is everything. 2. How will the unemployment rate impact rate rises? The latest figures from the ABS show that unemployment has dropped to 3.5%. This has caused quite the stir, with economists now expecting rates to rise by 0.50% next month, maybe even 0.75%. David cautions that the RBA shouldn't move too hard too fast on rate increases, but it is looking increasingly unlikely that the RBA will move by 25 basis points only. It will be interesting to see what actually occurs next week... 3. Rents playing catch up Increasing rents have been the talk of the town, with rents recently going up significantly. Pete shares some interesting data which highlights that in the last 10 years, rents have not kept up with inflation despite the dramatic increases. How will this inform future policy decisions from the Minister for Housing? We will have to wait and see. Updated predictions for 2022 1. A look in the rear view mirror at the first half of 2022 The trio revisit the predictions they made at the beginning of the year. Were they on the money or did they miss the mark? Tune in to find out! 2. What will the property market do in 2022? What capital growth rates can we expect around the nation this year? The trio review their predictions and lay their predictions down for the rest of 2022. 3. Which capital cities will be the top performers? The trio look into the crystal ball, pour over the data and explain which capitals are expected to top the charts this year. But remember, property is not an asset class that lends itself to short-term investing. The important thing is to plan and strategise for the long-term. 4. How will regional locations fare? Regional locations have again outperformed capital cities in the first half of 2022. But will that continue? 5. Will investors jump back into the market Investors have shown strong increases in activity over 2021 but only a slight increase in the first 5 months of 2022. Is this trend likely to continue? The trio share their insights. 6. Will APRA intervene in the property market? The RBA has done all the heavy lifting with increasing interest rates, meaning that APRA hasn't had to intervene to temper the market. But will the government search for ways to intervene to keep rental prices lower and tempt first home buyers back into the market? 7. Developers and building Residential construction costs continue to climb and builders are flat out with projects, exacerbated by labour shortages, materials shortage and supply chain delays. How long will costs continue to remain high and what impact will this have on the property market? 8. The outlook for interest rates? The trio share their predictions for future cash rate rises by the RBA and at what point they each think will the rate rises end. 9. Rental market forecasts Rents have continued to climb and vacancy rates have tightened. The trio discuss the outlook for rental markets for the rest of 2022. 10. Sales volumes After a record...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Markets across Australia dip further over June For capital cities already in retraction, the rate of decline has increased over June, while those still experiencing value growth have seen a definitive slow-down in the rate of price increases. Sydney in particular has made the headlines, with a median dwelling price drop of 1.6% over June, the largest monthly fall since 1989. The trio discuss the fact that these circumstances are not unusual after a period of rapid price growth. 2. Upper quartile feeling the pinch As is typical of rising and falling markets, the upper quartile is leading the price declines and feeling the pinch more than the lower quartile. This has a significant impact on median values, as statistically, the bigger numbers are removed from the data pool. However, it's important to note that quality property is still in high demand, particularly if it sits within the median price range and buyers should not expect a bargain. A key example is entry level family homes where there is simply not enough stock to cover the demand. 3. How capital cities have fared over the last 40 years Cate shares some interesting data collected from the REIA showing annual value growth for each capital city since 1980. Whilst a 1% differential in annual growth compounded over 40 years will make a significant difference to the end result, it's important to remember that there are many facets to consider when investing, such as vacancy rates, insurances, maintenance costs and rental returns. Although one capital city may have performed better than another over the long-term, price points are significant and could mean that it's better to purchase a high-quality asset in a lower performing city vs a low-quality asset in a high-performing city. 4. Market cycle trends The trio discuss the trends in market peaks, which cities were the first to move and how these moves correlate with population size for the corresponding cities. 5. Taking a critical eye to data and median values The trio discuss data and differences between the nation's data houses: REIA, ABS and CoreLogic. As an interesting note, Brisbane is gaining on Melbourne in median values for all dwellings, but a closer look at the data shows that it's not all that it seems... 6. Rollercoaster rents The trio discuss the case of Darwin which has had large swings in annualised rents over the last year, resembling one of the scariest roller coasters in the theme park. Melbourne units lead the charge for rental increases, which suggests that people are migrating back to the city and a supply-side issue could be brewing. To add to the pressure cooker, vacancy rates tighten further across most capitals. How will this impact the property market and who are the buyers likely to jump into the fray? Stay tuned to find out. 7. Listings follow the annual trend and dwelling sales return to normalcy Following the usual seasonal winter trajectory, listings have dropped in Melbourne, Sydney, Adelaide and Canberra. The trio discuss the curious case of Hobart, which has seen a very large increase in listings year on year. Although being a smaller city, it doesn't take many transactions to register some serious numbers. In terms of dwelling sales, the figures are tracking back towards the 5-year average, after a spike in activity last year following an uptake in lifestyle decisions that were put on hold during covid. 8...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Investors making a come back Cate discusses the return of the investor. Enticed by less competition, higher rental returns, tight vacancies and longer tenures, investors are coming back into the market and taking advantage of the opportunities. 2. RBA lifts rates Dave shares with our listeners that once again the RBA has lifted the cash rate by 50 basis point to a target of 1.35%. This will flow through to the lending market variable rates. Many economists are tipping that the cash rate could climb to as high as 2.0% or possibly more. The move is largely to tackle the current inflationary environment, with inflation forecast to peak later this year and then decline back towards the 2-2% range in 2023. 3. Understanding vendor motivation Cate shares some hot tips for prospective purchasers on whether you should put in a pre-auction offer and why entry level family homes are still going strong despite the softening market conditions. 4. Adelaide is at the top of the charts over the financial year Pete shares some exciting news for his home town Adelaide which has snuck into the top position over the last financial year with 25.7% annual growth over Brisbane's 25.6% annual growth. Can Adelaide do it again over the calendar year? Interestingly, Brisbane may overtake Melbourne in median house price. Watch this space! Case study #4 1. The conundrum This case study follows the journey of Jason and Amy, who wanted assistance deciding whether they should purchase a home or investment, before or after they have kids, how their cash flow would change as they start their family, what cash savings buffers they should have in place, and how much they should spend and which location. 2. Introducing Jason and Amy David shares Jason and Amy's key circumstances and of course, their lifestyle and property goals which are driving their decision. Jason and Amy are a couple in their early 30's, yet to start a family, living in one of Australia's major capital cities. Their long-term plan was to continue living in a capital city, but thought they may move to a regional area in the short-term to be close to family and have some additional support as they start having children. 3. Starting a family with your eyes wide open The trio discuss the importance of understanding (and being comfortable) with the impact that starting a family will have on your cash flow. This could be the difference between holding on to a property and panic selling when savings start to go backwards. 4. Modelling the scenarios Two scenarios were modelled for Jason and Amy, one to purchase their home now for $1.1M or an investment that could become the long-term home for $1.5M. The trio discuss the pros and cons of each scenario. 5. So, what did they choose to do (and what was the compromise)? Tune in to find out which scenario Jason and Amy went for. Were they successful and what was the compromise? 6. The risks of rent-vesting The trio discuss the dangers of rent-vesting when the desire to get into the long-term family home takes over and some clever ways to work around this proactively. Visit the show notes - https://propertyplanning.com.au/property-planning-case-study-4-do-we-buy-in-the-capital-city-or-region...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. NSW land tax to put a floor under property prices Looking at quarterly results, the two major cities with the biggest price falls have been Melbourne with 1.4% decline and Sydney with 2.1%. However, NSW will soon be implementing an optional land tax over stamp duty for first time buyers entering the market, which is likely to encourage some first home purchasers to dip their toe in the water and this in turn could increase demand. 2. Pre-auction offers Cate shares some hot tips for our listeners in preparation for today's episode on how to manage pre-auction offers in a cooling market and sometimes a better outcome will be achieved if you wait until the auction. 3. Inflation may take longer than usual to come back down David shares an interesting theory on why rising rates may not be enough to curb inflation. Our lost life experiences over the last two years means that not even rising rates and increased mortgage repayments can curb our desires to go on holidays, see friends and spend extra money on getting social. How to tackle cooling markets 1. A question from our listener Some questions for the pod about how to approach a flat/cooling market. Cate what should you do when you are the only one to show up to an auction and or bid? Peter, how do you approach comparables when prices are falling? How do you take advantage of seller FOMO? I also think a whole pod on climate risk (BAL levels, flooding, future temperatures in capitals) would be good. Keep up the great podcast. 2. When you are the only one at the auction, what are the risks that buyer psychology can pose? The trio discuss how buyer psychology can get in the way and cause obstacles for an opportunistic purchase. If the research has been done and the property is a winner, then ignore the white noise in your head that's saying there's something wrong with the property. It may just be your lucky day. 3. How to value properties in a cooling market Pete explains how valuers actually assess the market value of a property and how comparable sales are used. More importantly, what adjustments valuers make in a rising market vs a falling one. You might apply some decreased percentage overlays to the historical sale prices. The same applies in a rising market, if dealing with a property that had 1% month on month growth, you will need to overlay this growth. 4. Why falling markets are the best time to buy Dave touches on market cycles and why in a falling market, you're likely never to get such a good price on a property ever again. 5. The fear of over-paying We can tie ourselves in knots over paying too much for a property. However, if you hold the property for the long-term, this amount will appear to be comparatively miniscule in the end. A reminder to our listeners, to purchase a property, you have to be willing to pay more than anyone else for it! 6. Why research is the cure all The trio discuss the worst-case scenario of purchasing a property and paying more than what a lender thinks it's worth. Cate explains why this is very rare and quite mitigated if the homework and due diligence is done. Now is not the time to cut corners. Roll up the sleeves and get through as many properties as you can. 7. What do you do if the vendor'...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. NSW state budget announces introduction of annual land tax to replace stamp duty Stamp duty has already been abolished in Canberra, but Canberra only has one hundred thousand homes. It will be interesting to see how Sydney fares on a much larger scale with one million dwellings. The introductory measures will be in place for first time buyers only, who can opt to pay land tax annually of $400 + 0.3% of the property value. 2. Attitudes towards the property market diverge The reality is that there is a segmentation in the market currently between those who haven't ever experienced interest rate increases vs those who have. Cate explains how this affords great opportunity for anyone who is willing to take the plunge in certain segments of our market. 3. Crypto currencies take a dive Increasing inflation has led towards large rate hikes in the US, with the most recent 75 basis point increase announced this month, which is the highest rate increase in 29 years. This in turn puts pressure on shares and crypto currencies. Bitcoin has fallen by 70%, whilst some crypto exchanges have ceased the ability for people to access funds and make redemptions, almost like a bank denying withdrawal of funds. This is a sure sign that the crypto currency market is facing some serious headwinds. Dave shares the potential upside that these falls represent for those who own property. The various types of sale methods and reasons why each are adopted 1. A question from our listener Hi guys, thank you for such an informative, but entertaining podcast. I've just listened to the episode on "off markets". I am just wondering if you can offer some insights into how to navigate when a property is "on market" but is listed as EOI (expression of interest), rather than a price range? Why might a vendor do this? Do you put your best price forward and declare all your cards, or is there still an opportunity to negotiate? Is it a case of Pete's rotten apples potentially? Thanks team 2. What are the typical methods of sale around our nation? Cate takes our listeners through a brief recap of the various different sale methods used and what factors impact the choice of sale method. 3. Best and highest offer - should you show all of your cards or go for baby steps? The trio discuss what happens when the highest offer is actually really low and the vendor isn't happy with the outcome and Cate shares her tips on when you should actually submit your best and highest. 4. Why wouldn't you auction a property? The trio discuss the market conditions and reasons why a property is selected to be sold via auction. More importantly, when you should not sell a property via auction. 6. As a vendor, what sort of guidance and rationale should you be looking for with your agent when you are considering the various methods of selling? The trio discuss how to field real estate agents and the key questions to ask. 7. What does it mean if the price guide changes? Listeners beware! Cate reveals what a reduced price actually means (and it's not more dollars in your pocket). Visit the show notes - https://propertyplanning.com.au/methods-of-sale-and-what-do-they-say-about-the-property-and-or-the-state-of-the-market-ep-159/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Comparing the history of Australia's property market downturns and increases Pete shares a sneak peak of data that he has collated detailing the extent of Australia's three strongest years of property value growth and declines. Without giving too much away, prices are likely to drop, but there is no need to panic. 2. What are the capital growth drivers when interest rates increase? Cate shares her Sunday blog detailing the drivers of capital growth when interest rates are on the rise and predictions for the property market. Check out our show notes to read the blog! 3. NSW stamp duty abolition in limbo David shares news from NSW, where the State Government is looking to abolish stamp duty and transition to land tax. Plans will be announced in the State budget next week, however the Federal Treasurer has confirmed that there are unlikely to be any handouts for tax reform. Watch this space... Interest rate movements and property values 1. Do interest rate movements impact the property market? In this episode, the trio sink their teeth into data going back to 1990 to answer the question whether increases or decreases in interest rates have an impact on the property market. 2. Floating the Aussie dollar and targeting the cash rate David sets the scene with a brief history of why the Australian dollar was floated in 1983 and the benefits this brought to our economy. Seven years later in 1990, the RBA started targeting the cash rate of overnight loans between the banks, which has a powerful influence on other rates in our economy, ie: mortgages. 3. Cash rate cycles since 1990 Since the RBA began targeting the cash rate, Australian's have lived through five rate lowering cycles, four increasing cycles and we've just started rate increasing cycle five. What can be gleaned from history to inform the future? The trio unpack each cycle and most importantly, what happened to property values and the broader economy. 4. Property predictions Dave and Pete stick their neck out and make predictions for the property market: how low will values drop and how long will the current rate increasing cycle last? Visit the show notes - https://propertyplanning.com.au/how-interest-rate-cycles-have-impacted-the-property-market-since-1990-when-the-rba-first-started-targeting-the-cash-rate-and-some-predictions-on-what-will-happen-this-time-ep-158/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Cash rate rises by 50 basis points, but the sky's not falling in The RBA raises the cash rate by 50 basis points to 0.85%, with an expectation that rates will increase by the same amount next month as well. However, this is no reason to panic. The cash rate was at 1.50% pre-covid, so there is still some room to move and the reality is that the cash rate was never meant to be as low as 0.10%. This was an extraordinary measure put in place to tackle the challenges that global pandemic brought. 2. The wage price spiral The trio discuss the possibility of a wage price spiral caused by high inflation. If wages increase in line with inflation (5-6%), it embeds inflation further and that's when the probability of job losses is increased, which is a worse outcome than slightly lower wage growth. This is an increased risk if minimum wages are increased, as employment awards and enterprise agreements are raised by the same percentage, effecting a vast amount of wage growth. 3. The current state of the economy Whilst many home owners may not like the prospect of increasing interest rates, however the economy is a strong position, which is why the cash rate has been increased. As stated by the RBA, the Australian economy is resilient, growing by 0.8 per cent in the March quarter and 3.3 per cent over the year. Australians are well ahead on their mortgage repayments, with a median of 21 months of repayments in savings, even with a 2% rise in mortgage rates, this would only reduce to 19 months. There is an upswing in business investment underway and a large pipeline of construction work to be completed. The terms of trade are at record highs, the lowest unemployment rate in almost 50 years and jab vacancies at high levels. 4. The latest home value index results The trio discuss the index results for May, which show Sydney and Melbourne on the decline, while Canberra went slightly backwards but a negligible amount. Astoundingly, Adelaide is still going strong with 1.8% increase over May. The market is well and truly slowing down for the other capitals and regions alike. As they say, all good things must come to an end, as we enter a period of 6 to 18 months of excellent buying opportunity. 5. Rentals and vacancies Rental markets continue to remain tight, with each capital city under 2% for vacancy rates. Those are expected to get tighter with the flow of new migrants to Australia. Builders will not be able to pick up the slack and increase supply to meet the demand, with fixed priced contracts in precarious positions as a few major builders go under. Now that prices are flattening, yields are growing even faster, with Melbourne now leading the charge for units, adding on 10% in the last year for asking prices. 6. Listing numbers on the decline Total listings are down for every capital city and in a change of gear, old listings (listings on the market for longer than 180 days) are increasing. This means that the up-take of the less desirable stock has slowed down for much of the nation, only in Brisbane are buyers still snatching up whatever they can. The upshot is that buyers are taking their time, FOMO has lessened and there is not as much pressure from other competing buyers. 7. Consumer sentiment continues to dive The house price expectations index, which typically lags behind market movements, is catching up with the market and starting to reduce. Th...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. First signs appear of inflation slowing down in the US Dave shares some promising news from the US about the rate of inflation starting to cool, with the core index rising by only 0.3%. Share markets have picked up the pace with this positive development. Australia is well behind the US inflation cycle, but is also lower on the inflation scale. Watch this space. 2. Caution for landlords thinking about rent increases Vacancies have been tightening across Australia and rents have been rapidly increasing, with many cities under stress with tenants scrambling to find a home. Cate shares a hot tip for the nation's rental providers looking to increase their rent. This is an important balancing act for our landlord listeners, as asking rents should be in line with the market rate, but hitting tenants with a substantial increase can cause problems as well. This point is particularly for those who have good tenants and have kept rents below market, but applying fair and consistent increases that don't shock our tenants is really important. Case study #3: Do we purchase a holiday home or an investment property? 1. The conundrum This case study follows the journey of Tom and Linda, who wanted assistance with working through the various pros and cons on how to best achieve their long-term financial and lifestyle goals. In terms of their next purchase, they weren't sure whether they should start building their investment portfolio or purchase a holiday home as they are satisfied that they are living in their long-term home. 2. Introducing Tom and Linda Dave shares Tom and Linda's key circumstances and of course, their lifestyle and property goals which are driving their decision. Tom and Linda are a couple in their late 30's with two children under 4 years old, living in one of Australia's major capital cities. Their initial plan was to purchase an investment property now, another investment in two years and a holiday home two years after that - very ambitious! However, the desire for a holiday home now to create life-long memories with their two children were holding them back and delaying their decision. 3. Modelling the scenarios Two scenarios were modelled for Tom and Linda, one to purchase their holiday house now at their preferred price-point of $800,000 and the second for one or two investment purchases for a total of $1.8 million. Yes, you read that right, $1.8 million. Can it be done? The trio discuss the pros and cons of each scenario. 4. So, what did they choose to do (and what was the compromise)? Tune in to find out which scenario Tom and Linda went for, were they successful and what was the compromise? 5. Critical considerations for wistful holiday home purchasers The trio discuss the pull and longing for many Australian's to have a holiday home all of their own. But before taking the plunge, it's imperative to crunch the numbers and understand the compromises to your bottom line, so you can make the decision with absolute clarity. For further insights, take a listen to episode #81 "Holiday houses - delirium or dream?" Visit the show notes - https://propertyplanning.com.au/property-planning-case-study-3-should-our-next-purchase-be-the-holiday-home-or-an-investment-and-how-do-the-financial-outcomes-marry-up-with-our-short-and-long-term-goals/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update Market update 1. Quality properties garner competition despite market cycles Cate shares her experience of bidding on election weekend, which as expected, was quieter than usual as prospective buyers took to the polls and enjoyed a democracy sausage. However, one property in particular which ticked many boxes saw a very competitive auction, which reinforces the basic principle that quality properties will garner interest and competition whether the market is rising or experiencing a lull. 2. The results of US cash rate increases Dave shares some surprising data from the US which has gone through 14 cycles of cash rate increases and 11 recessions. Stay tuned for next week's episode, for a comparison with Australia's history of rate increases and how they have impacted the economy. 3. Government shared equity scheme Pete encourages our listeners, whether first time buyers or parents with adult kids, to check out the government's shared equity scheme which is set to be introduced on the 1st of July this year. There will be income caps and property value limits, but for anyone looking to get a foot in the property door, this could be a good initiative. Plotting Australian property market movements 1. A look at Australia's price spikes Since the 1950's, Australia has seen 3 periods of stellar growth. The most mind-boggling being 1950, where prices grew 111%! What were the drivers of growth and how have these forces changed over time? 2. Disrupting the property market Fast-forward to today's drivers of capital growth, it seems that proximity to the city will continue to be a key factor for desirability, competition and property price growth. With more households sustained by double incomes, convenience and being close to amenities has been more important than ever. The trio discuss what could shake up the status quo. 3. Diving into Australia's recessions The trio discuss the recessions from 1970's to now, what caused them, what were interest rates doing at this time and how these features compare with our nation's situation today. 4. How financial deregulation has impacted the property market The trio look back to 1980's which saw an upheaval in banking regulation and how this impacted the economy and property market. After all, Australia held the mantel for the country with the longest period of time without a recession. 5. How has population growth impacted capital city prices? Does population growth have a direct correlation to capital growth? The trio dive into the data to answer this question. 6. How have capital city prices on the ladder changed over time and which cities displayed more volatility than others? The trio discuss the movements of capital cities from 1970 and how each have performed. Interestingly, Perth has been near the top of the ladder a few times, highlighting the power of employment, natural resources and availability of high-paying jobs. Check out our show notes for a great infographic that shows the growth of capital cities in inflation adjusted dollars. 7. Why property is a great asset class to invest in The trio discuss the history of property prices in relation to inflation and why investing in property is a solid move and a great hedge agains...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Properties still hotly contested Cate shares her weekend auction experience at a trendy inner-northern suburb in Melbourne. Despite the looming election, competition was strong and felt like we were back in the throws of September 2021 when the property market was going gangbusters. It goes to show that quality properties are still attracting competition. 2. Rents on the rise Capital cities have been posting mammoth increases in rents, with the trend now that rental growth is outpacing the rate of capital growth. High capital growth performing assets may have lower yields, but it's likely that rental growth will outperform in the long-run. 3. How do rising interest rates affect the property market? With many prospective investors nervous about investing with interest rate rises on the horizon, Cate shares data on historical property downturns and increases and how this has correlated with interest rate rises and falls. Check out our show notes for the link to Cate's blog. 4. Perth recovery For the first time in 8 years, the median value of Perth has finally reached a new record price. It's been a long recovery with many investors and owner occupiers wallowing in negative equity, but following the relaxing of covid restrictions, Perth has recovered from previous downturns. Show notes - Listener questions 1. A question from our listener - Should I invest in property now or wait until after we have kids? My partner and I are in our late 20s, work full-time and plan on starting a family in the next 3-4 years. We bought our first home in 2019 (Woodcroft Adelaide) which we plan on staying in long term. Since then, with extra repayments and the market we have built up equity (~200k useable). As our incomes will be changing with time off for kids, what advice would you have when weighing up the pros and cons of investing now compared with waiting until our incomes are more more steady (ie kids starting school) and we have paid off more of our mortgage. 2. Crunching the numbers The key question to answer is whether our listener will be financially secure if they purchase an investment property now and then go on to start a family, which comes with reduced incomes and additional living expenses. The trio crunch the numbers and discuss what price point would be viable. 3. Buffers and risk tolerance A fundamental point to consider when planning for an investment is risk management and whether the available funds buffer will allow our listeners to have a good night's sleep. Risk tolerance is key here, ask yourself, "would I be comfortable if my net monthly cash flow was very limited, neutral or even going backwards?". If cash flow will be negative during the period of having children, then maintaining a buffer large enough to support a growing family will be a critical consideration. 4. How does the family home fit into your investment decision? Our listener has done well for himself to purchase the long-term family home, which is large enough for a family with 2 children. Staying in the current home makes it much easier to build an investment portfolio. However, those who are considering embarking on the journey of having children and also purchasing an investment property must consider how their needs from a family home may change in the future once the kids come into the picture. If upgrading is on t...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Adelaide top of the pops For the first time in a long time Adelaide is the highest performing capital city for the quarter, topping the charts with 5.7% growth. Adelaide just surpasses Brisbane's 5.6% recorded quarterly growth. 2. Capital city market cycles diverge Due to governemnt stimulus during covid lockdowns, all capital cities were simultaneously growing in value. In a return to normality, capital city property growth trajectories have diverged, with cities now at different phases of the property cycle. Sydney is in slightly negative territory, Melbourne plateauing and Hobart now on a downward trend, the worst performing over the month of April. On the other end of the scale, Adelaide and Brisbane are still flying, while Perth has rebounded and is starting to rise. 3. Combined regions continue delivering strong growth Regional areas have continued the run of solid growth, returning (a combined regions measure) of 1.4% value growth over April while capital cities combined only raised by 0.3%. Over the last 12 months, the regions have returned a whopping 28.5% total return. The trio discuss the peak rate of growth, working from home, migration trends and the insights that can be gleaned. But is this a permanent attraction by home buyers towards the regions? 4. Rents and vacancy rates likely to entice investors back into the market Nationally, vacancy rates have hit 1%, which represents a very tight rental market considering 2% is the norm. Even the poorest performing cities, Sydney and Melbourne, are below 2%, with all other capitals posting below 1%. This is good news for investors, because rental yields, (which have been at an all-time low for a while), are now expected to move back to historical norms. 5. Melbourne and Sydney unit market recovering A year ago, the Sydney and Melbourne unit market hit rock bottom. In a stellar recovery, unit rents are up by 8% for Melbourne and 9% for Sydney over the last year. This is likely to lead to value growth for units, as investors catch wind of rising rentals, tight vacancy rates and higher rental yields, and jump on the bandwagon. 6. Interest rates rise but the sky is not falling A deterrent for budding investors is the strong likelihood of rising interest rates over the next year. However, market conditions are still incredibly positive. Property values are up, rents are up and interest rates are still historically very low, even if they do rise by 1%. Don't forget, lenders factor in rising interest rates and changing market conditions and they add in a buffer to their affordability assessment accordingly. 7. Listings drop, is the election to blame? Nationally, listings volumes have dropped over the last 3 months. People do get nervous with a pending election, even though there are no big ticket property items on the agenda this time around. The trio will be watching this space closely to see what happens with listings post the election and how this imbalance will affect property values. 8. Key insights from lending indicators The level of investors entering the market has started to plateau, while first home buyers are on a slight uptick. Comparing with historical figures, the level of investors and first-time buyers are in a balanced position. The trio discuss the private rental market and the key role it plays in housing those who are not able or not ready t...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. RBA lifts the cash rate Breaking news! The cash rate was lifted last week by 0.25%, taking the cash rate to 0.35%. This is a change of tune for the RBA governor, who was predicting that rates wouldn't rise until 2024. The move came as a result of rising inflation pressures, but the inflation Genie might not be that easy to put back in the bottle. Stay tuned to next week's market update episode for more on inflation. 2. Riding the market cycle wave Property prices are certainly slowing and may well start to decline, but this is no cause for panic. Pete shares his research on the property downturns over the last 25 years and in the end, you need to be prepared to take the good with the bad. If you're in it for the long-term, just sit tight and ride out the wave. 3. Late bids and auction rules Cate shares a recent auction experience that had hearts stopping and blood pressure rising. It was bad luck for a bidder that jumped in too late, because when the hammer falls, the game is over. Top 10 tips for first time buyers and investors 1. Educate yourself A sure fire way to get started on the property journey is to take the time to educate yourself. The trio take our listeners through the wealth of resources that are available to build a solid foundation of property knowledge. 2. Mix with like-minded people Or should we say, avoid naysayers? Negative Nancy's can quickly unravel a smart strategy and plant seeds of doubt, causing inaction, which can often be worse than taking half-good action. Mixing with like-minded people provides an environment where ideas are exchanged and much needed support is provided for what can be a stressful decision. 3. Set your goals Dave shares with our listeners 10 tips on how to create goals and stick to them. For further insights, take a listen to episode 82, "Goal Setting fundamentals for property success". 4. Select where and what to buy The trio discuss the critical elements of selecting a location and property to purchase. But don't forget to look ahead and think how the first property could impact future long-term plans. 5. Visit your areas and do your research The trio share the best data sources for doing research from the comfort of a laptop at home or in the office. However, that does not negate the need to get out and about and take a stroll through the area you're interested in purchasing in, particularly if you haven't lived there before. Yes, property investors, this applies to you too! 6. Find out how much you can borrow & if there is any assistance A critical step here is sorting out a budget, taking into account existing cash flow, desired cash flow and available funds post-purchase. Dave shares with our listeners why the lowest interest rate is in fact not the key to success. Ask yourself - is the property or the rate more important? 7. Save money for a deposit, consider shared equity, joint ownership Money management! It may seem easy to a first home buyer as often they don't have children, and/or might not be partnered yet with mortgages and credit cards to juggle. But the sooner you can set up an effective money management system, (and get your partner on the same page) the better! The trio discuss the basics of shared equity schemes and join...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Thank you for the review! Cate shares a lovely review that we received in the apple podcast app. Not everyone is able to access expert advice, which is why we love putting these episodes together for our listeners. But more so, we really feel a spring in our step when we know we've helped a listener, so please keep them coming. They mean a lot to all three of us. 2. Clean energy to bolster national defence An interesting article in the Australian Financial Review has shed light on Australia's reserves, with only 18 days of petrol supplies and 22 days of diesel supplies in stock. Part of the reason why the Ukrainian's have been so successful in resisting Russian attacks, is the need for Russians to retreat to re-stock. The low reserves for Australia highlights a weakness in defence and puts the nation at risk is different ways. The good news is that this could be the push and driving force needed for Australia to become self-sufficient and transition towards green energy. We're hoping! 3. A round of applause for Adelaide is due Recent reports from CoreLogic show that Brisbane and Adelaide continue to shine as Australia's best performing capital cities. It's not often that Pete gets to brag about Adelaide, so we'll let him have this one. Property Planning Case Study 1. A mixed bag - investment, holiday house and future long-term home. Can we have it all? This case study follows the journey of James and Amanda who had a number of boxes to tick for their next property. They weren't sure if they should purchase a straight-forward investment property or if they could achieve an investment property purchase in a beachside location which could double as a holiday house and maybe even eventually become their long-term future home when it comes time to downsize. Another ingredient to add to the pot was that they didn't want to compromise their current lifestyle and for extra spice, ideally this property would work towards achieving their income goals for retirement. 2. Introducing James and Amanda - financial overview and goals Dave shares James and Amanda's key circumstances and of course, their lifestyle and property goals which are driving their decision. With two teenagers in private school and very little surplus cash flow, the key conundrum to unravel was how to complete the next purchase without compromising their current lifestyle and saving enough cash to have family adventures. Their initial preferred price point was initially determined to sit around $1.2M, however James and Amanda realised that they would be hard-pressed to find a property they would enjoy as a holiday house and a long-term future home. 3. Modelling the scenarios Two scenarios were modelled for James and Amanda, one at their preferred purchase price-point of $1.2M and the second for their revised, (and more realistic) price point of $1.4M. Dave explains how, (with some clever mortgage strategy and borrowing capacity finesse), the $1.4M price point was achievable, despite their tight cash flow. 4. So, what did they choose to do, (and what was the compromise)? Tune in to find out which scenario James and Amanda went for, were they successful and what was the compromise? 5. How will James and Amanda reach their retirement income goal? James and Amanda had a retirement income goal of $60,000 p/a through property rents. Wit...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update1. Victorian's snubbed by the Federal Government Budget Looking at the Federal Budget infrastructure spend, it appears that Victoria has been overlooked to some degree. The budget set aside $208.4 million in new money for Victorian infrastructure which amounts to 5.9% of the Federal Government spending on infrastructure projects, while the percentage of the Australian population living in Victoria is 25.8%. Interestingly, money has been earmarked for the East-West link project that was booted by the Andrews government. 2. A closer look at capital cities that have pulled back on capital growth Melbourne and Sydney experienced slightly negative capital growth in the month of March. This is expected to continue into April, with two long weekends and a disproportionate increase in listings. Segmenting the market further, it's evident that the higher end properties in the inner ring and inner east of both cities has taken the hardest hit of late. This is consistent with previous market trends, where the top quartile is often the first to move in a changing market.3. Foreign investment in residential property drops from $10 billion to $6 billion Critical information left out of this headline is that foreign investment in commercial property has doubled from $39 billion to $82 billion, which in part explains why yields for commercial property have lowered. The Australian property market has been seen by foreign investors as a safe haven and yields may very well drop further if commercial property continues to attract interest from overseas buyers. In light of looming interest rate hikes, diminishing yields could be a major concern. The trio discuss the factors and measures which could dampen foreign investment. Migration4. How has COVID affected population growth? For the last 20 years the Australian population has grown consistently at 1-2.2% year on year. However since the beginning of COVID, this figure has plummeted close to 0% due to international border closures. There is more to the data than migrants and new arrivals, however. Overall population figures also include returning expats, births and deaths. The trio discuss how this has impacted employment, universities and capital city markets.5. Melbourne and Sydney the biggest losers in flight to the regions There are no surprises that the nations' largest capitals of Sydney and Melbourne were hit the hardest in the great tree and sea change. There are many and varying reasons aside from COVID lockdowns and working from home to explain why this would be the case. A major factor is runaway house prices, which naturally causes migration and investment when housing affordability bites and regional opportunity presents itself as a more cost effective way of life for some households.6. The outlook for Melbourne Melbourne sustained the biggest population losses in 2021, where a total of 32,000 people left for the regions and interstate, while Sydney lost almost 20,000. Prior to this, Melbourne was on the road to overtaking Sydney to be the most populated city in Australia. Dave shares insights from the Centre of Population on the trajectory for Melbourne's population recovery.7. Job vacancies jump in regional Australia Cate shares the top 5 regions with the biggest increases in job vacancies over the 12 months from February 2022. Job vacancies are putting pressure on businesses in location...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Could now be the time to buy? Today's market is still a seller's market, although not as crazy as last year. In our two capital cities, many properties are passing in but selling immediately afterwards, and auction clearances rates have lowered but still in the 70's. With global unrest in Ukraine, the federal election looming and chatter of interest rate rises, this might just be the window that you've been waiting for if you're looking to purchase. 2. Turning the tables on fixed rates The Covid induced measures targeting the 3 year bond yield meant that for much of 2020 and the first half of 2021, fixed rates were the lowest we've ever seen and even lower than variable rates. However, the last 10 or so months have seen fixed rates rise and the lending market switched back to the normal status quo of variable rates being lower than 3 year fixed rates. 3. Check out the new CoreLogic website CoreLogic have made some improvements to their site, which is a huge positive as it gives the average punter an excellent idea of what's happening in the market. Vendor advocacy and borderless buyer's agents 1. Call out to our listeners for questions In this week's episode, the trio tackle questions from our listeners on vendor advocates and borderless buyer's agents. Got a burning question? Submit your question to the trio here: https://zfrmz.com/uLtjhyBskV96PY6eJfaI 2.Should I use a vendor's advocate? The question from our listener: I am interested to know about vendor advocacy. We are selling a property and have been approached by a known buyer's advocate in our area who has offered to act as our vendor advocate. This isn't the first time we have sold, it's our fourth time and our most important. We haven't been overly happy with our agents in the past and could see the value this person could bring. The thing I can't reconcile is why an agent would do more for us at the request of our advocate when they are getting less commission (advocate getting their share). We are open to a new experience and after two discussions with the advocate we can see the knowledge base is high. We just don't know what to be careful of and if we end up paying a higher commission will it be worth it? 3. What is a vendors advocate and can they add value? The trio unpack the difference between a vendor's advocate and a selling agent, plus the benefits and risks of using a vendor's advocate. Cate shares her expertise on working alongside vendors advocates and Dave shares his thoughts based on when his company had buyer's agents and vendor advocates in-house. When done well, vendor advocacy can certainly add value, but there are critical considerations in vendor advocate selection to be aware of. 4.When is engaging a vendor's advocate the right move? The trio discuss the circumstances that lend well to using a vendor advocate and Cate shares some critical questions that our listeners should ask vendor advocates when choosing one to work with, and in particular, the experience and the credentials they should have. 5. Borderless vs local buyers agents - the pros and cons The question(s) from ou...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. SA council takes matters into its own hands Pete shares the measures that the Karoonda East Murray Council in SA are trialing to grow their population. Kudos to them! Rather than waiting for the federal or state governments to come to the party, they are implementing some great initiatives themselves. 2. How long does it take each capital city to double in value? Pete shares with our listeners his research for each capital city, starting from March 2022 and working backwards, to distill how long it has taken for property values to double in each capital city. The winner may be a surprise, however the trio warn that some of the performances can be unpredictable. Trying to pick the next hot location is fraught with danger and our listeners are better off sticking to the tried and true principles of selecting quality investments. 3. Sydney and Melbourne flatlining while Brisbane and Adelaide continue to shine The trio take our listeners through the highlights in the March home value index results and the reasons behind the numbers. Plus, not all the numbers can be relied upon. Hobart is such a small market that there may be some anomalies skewing the results. 4. Rents turning the tide For the first time in a long time, national rents are outgrowing housing values. Which also means that yields are increasing, particularly in Melbourne and Sydney which have each had a small degree of negative capital growth. Interestingly, it appears that there is a flock back towards units and inner city living. Sydney now records the strongest lift in unit rents with Melbourne not far behind. How the opening up of borders will impact this further is a story that is still unfolding. Vacancies have also dropped to a fresh 16-year low, putting immense pressure on rental markets. 5. How do current listings compare with the 5 year average? Nationally, "total" listings are 30% below the 5 year average. The trio have been saying for months now that there is a deep correlation between the level of listings and capital growth. An example is Brisbane and Adelaide, both of which have experienced the strongest capital growth outcomes in March and also have total listing numbers that remain 40% below the 5 year average. The story is similar for regions, as there are 22% less sales in combined regional areas for this current year so far. 6. Consumer sentiment takes a dive The house price expectations index has fallen by 10.8% to 139 points. This index tends to lag behind actual market movements and the writing has been on the wall in 2022 that growth in the housing market is well and truly slowing down, (for most states). Interestingly, the time to buy a dwelling index has also dropped to 78.3 points, after hovering in the low 80's to high 90's since July 2021. This index is now at its lowest level since February 2008, during the GFC and well below levels seen in the 2017-18 housing market decline. This is not a good harbinger for what's to come, as this index tends to be a forward indicator. The trio discuss the reasons behind the drop in sentiment. 7. Turning the tables on fixed rates With fixed rates on the rise due to increasing bond yields and swap rates, lenders have started to compete on variable rates. Now that the tide is turning, many variable rates are lower than the fixed rate offering. Pre-covid, this status quo was the norm and it was the RBA measures which drove fixed rates to the lowest they'd eve...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Auctioneers call the shots Cate shares her experience attending an online auction where bids whittled down to one dollar increments. After a tense game of property ping pong where 256 one dollar bids were made, the auctioneer called an end to the pain and declared that only bids of $500 or more would be accepted. This serves as a good reminder that the auctioneer has the capacity to change the rules mid-auction and refuse bids as well. 2. Smoke signals rising from China Evergrande developments Property development firms in China are experiencing a major delay in auditing, with an increase of 75% in delayed results. Five Chinese auditors have resigned in the last three months, and combined with the delayed results, there are the concerns of what the audits may disclose. This could have an impact on broader money markets, flowing into Australia and around the world. The number of property sales in China has dropped drastically, as well as a raised threat of hidden debts. Chinese companies are due to report their December year-end results in April. Watch this space... Federal budget update 1. How does this budget compare with previous budgets? With the federal election looming, no one was expecting to see huge dollars being thrown around in this years' budget, particularly with the large amounts spent on emergency pandemic measures in the last two years. The trio discuss some key points that were missing, namely: housing affordability, the ongoing rental crisis and returning Australia to surplus. 2. First Home Guarantee, (formerly known as the First Home Deposit Scheme) Also known as the 'New Home Guarantee', the First Home Guarantee allows first home buyers to build or purchase a newly built home with a deposit as low as 5%, without having to pay Lenders Mortgage Insurance (LMI), as the government will guarantee the remaining 15% deposit required to avoid LMI. The scheme has been extended from the 10,000 places promised to 35,000 places per annum. The trio discuss the price caps which apply and eligibility requirements. They also ponder the alternatives for first home buyers who are sensitive to the concept of lenders mortgage insurance. 3. Family Home Guarantee Like the First Home Guarantee, this scheme allows single parents with dependents to purchase a property with an even lower deposit without paying LMI. However, there are some key differences which make it a great initiative. Single parents need only a 2% deposit, (not 5%) and they are also able to purchase established as well as new properties under the scheme. Places in the scheme have been doubled from 2,500 to 5,000 guarantees per year. The trio discuss the benefits of this initiative for single parents who have little cash on hand, which is common when going through a divorce or separation as well as competing with other households that have double incomes. 4. Regional Home Guarantee This guarantee is a new initiative introduced, with 10,000 guarantees on offer over the next 3 years. Similar to the First Home Guarantee, the required deposit is as low as 5% and the guarantee is offered for newly built homes only. A key difference is that this scheme is offered to permanent residents, as well as Australian citizens, which the other guarantees are not. Reading between the lines, it seems that the government is attempting to encourage migrants to move to the regions. However, the trio question whethe...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. The 20 most unaffordable cities in the world Pete shares with our listeners a report that states Adelaide and Brisbane are more unaffordable than New York. How can that be? The devil is in the detail when it comes to how affordability is calculated, which in this case, did not take into account interest rates and repayments. The trio discuss how reports can be skewed by the methodology used and the angle that the journalist is instructed to pursue. The trio point out that the debt-to-income ratio is a commonly used measure, however it is fundamentally flawed because interest rate (and cost of servicing the debt) is not always taken into account. They all concur that debt to repayment ratio is a more prudent measure to follow when assessing affordability. 2. Number of sales shows long-term trend of decline Continuing on the data theme, Dave shares sales data which indicates that 2021 had the highest number of sales on record with 650,000 property sales recorded. However, upon further examination, this made up just 6% of all properties in Australia. In 2003, although there was a lower volume of sales recorded, the sales for the year accounted for 7.8% of all properties in Australia. The population has been growing since, but the number of people selling has been declining and reached as low as 3.7% in 2018 and 2019, before being bumped up in 2021. This is another reminder that if there are less properties being sold, relative to the total number of properties and population growth, supply is reduced and prices will go up. 3. Underquoting - but what are we going to do about it? Cate shares her weekend auction experience, where the agent price guide was set at $800,000-$880,000 and the property sold (as Cate expected), at $1.351M. This was a clear case where the agent underquoted the property despite recent sales supporting a likely selling figure closer to the actual result than the documented quote range suggested. Underquoting reforms are being considered by Victorian Consumer Affairs, and everybody has an opportunity to submit their thoughts. U to Z of Property Success U - Unconditional: what does it mean for offers, contracts and mortgage applications? The trio discuss unconditional contracts, when is it appropriate to add conditions and share their hot tips on how to manage the vendor in the event of looming deadlines that are likely to be missed. Dave takes our listeners through the necessary steps before a lender will unconditionally approve a loan application. V - Valuations: how can you get the best outcome? The trio discuss the difference between valuations conducted by a licensed valuer, appraisals conducted by real estate agents and lender valuations arranged as part of the finance approval process. Listen in for the trio's expert insights on how to prepare for a valuation in order to get the best results. For further education on valuations, listen to episode #17 "Valuations 101". W - Waiver: cooling off period When purchasing a property, the most common right waived by purchasers is the right to a cooling off period. Buyers who are purchasing interstate, beware! Legislation on cooling off differs from state to state and in many states, cooling off does not apply for auctions. For further insights on cooling off periods, listen to episode #132 "Purchasing laws in each state - Part 1". X - eXtra Careful: when ...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates Victor Harbor vs Portsea As promised, the Property Professor presents his research on why regional towns in South Australia such as Victor Harbor are so much cheaper than regional towns in Victoria, such as Portsea. Pete shares with listeners the key data sets and demographics that, in tandem he believes are determinants for determining the drivers for values and price growth rates in these two holiday destinations. Off markets 1. Why do vendors sell off-market? Cate gives a quick summary of the top reasons why a vendor might choose to sell off-market. For further insights listen to episode 85 "Off market properties - everything you need to know". 2. What has made off-market opportunities more mainstream? Off-market sales have become more trendy and sought-after because of the perception that buyers will be getting a great deal with some heavy discounting. But is that actually the case? The trio discuss the role that off-market opportunities play in the real estate game. 3. How do market movements impact the quality and number of off-market opportunities? The trio discuss the ebbs and flows of off-market sales during a seller's and buyer's market and what you can expect from a discounting and abundance perspective. 4. Why you have to do your research Many prospective purchasers get excited by an off-market opportunity and the assumption that they'll be taking home a winner at an excellent price. However, that doesn't mean that buyers can take their foot off the comparable sales pedal. Buyers still need to understand the market and the quality of the property to ensure that they are getting a fair price. 5. How do you identify a bad off market? Cate takes our listeners through the tell-tale signs of a bad off-market property. 6. How can you tell if the off-market is genuine, or is it really a pre-market in disguise? A pre-market is a property which is not yet advertised on the market, but the agents are preparing for a sale campaign and are testing the waters before the property is advertised for sale. This can be really frustrating for buyers if they think they've come across a fantastic off-market opportunity, with the ability to make an offer without stiff competition from other purchasers. Cate gives some hot tips on how to deal with the selling agents to find out if the off-market is genuine. 7. How does seasonality change off-market supply? The best off-markets are from vendors who are motivated to sell as they have made a financial commitment (eg: purchased a new home and need to sell) or a distressed landlord with an uncooperative tenant. So, when are these people likely to sell? 8. Why are buyers so keen to field off-markets? When listings are thin on the ground, an off-market opportunity can be the break that a buyer has been waiting for. However, there are some misconceptions about off-markets which can steer buyers in the wrong direction. Visit the show notes - https://propertyplanning.com.au/off-market-properties-part-2-how-to-tell-if-the-off-market-is-genuine-identifying-a-bad-off-market-how-market-movements-impact-the-number-and-quality-of-off-market-opportunities-and-more/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Declining rate of growth for housing values is proving to be the long-term trend While housing values are generally rising, the pace of growth in the national index has trended downwards since April 2021. This is not to say that housing values are going backwards, they are still increasing but have lost steam. Housing values increased 0.6% nationally over the month of February, although the effects on each state have varied greatly. Brisbane continues to perform strongly with 1.8% growth over the month and 29.7% over the year, which could well be a record for the city. However the floods in Brisbane are likely to dampen the property market, at least for the short term. 2. Is the property market at an inflection point? With recent events in Ukraine, speculation over rising interest rates, combined with inflation pressures and yields increasing for the first time, we may very well be at a turning point in the property market. ...Or are we? Media and speculation count for only so much and we have navigated global challenges before and fared better than predicted. 3. Regions continue to perform strongly Total return for combined regions is at a whopping 30.5%! 'Combined regions' is a very vague term and there will be some regions that perform more strongly than others, with annual growth and yields topping this figure. According to CoreLogic, Regional SA is actually the best performing regional market over the last 3 months, which is probably very closely tied to the fact that proportionally it has the lowest number of total listings of any regional area or capital city in the country. The trio ponder why investment in Adelaide's regions lag behind the nation's eastern states, among other data findings. Stay tuned for next week when Pete to shares his research and insights in his market update, where he will try to determine why regional towns in SA such as Victor Harbor are so much cheaper than regional towns in Victoria, such as Portsea. 4. Rents and vacancy rates will be the story of the year Cate shares her insights on the rental market in Ballarat, (as one example of a vibrant and changing regional city), and why rents have tightened again in this market. With the opening up of international boarders, vacancy rates are expected to be put under more pressure for capital city and university towns that will see an influx of international students. Vacancy rates are under 1% in every capital city except Melbourne, Sydney and Brisbane, although these cities have seen a significant reduction in vacancies over the last month. 5. Rental yields on the rise? Average rental yield in Melbourne and Sydney is as low as it's ever been. But this is likely to be the bottom of the curve. Melbourne unit growth has now recovered and Melbourne is largely on par with other capital cities in terms of annual change in rents. Increases of 20% in yields with the arrival of a new tenant is not uncommon, where previously landlords would be lucky to see a $10 per week increase in rent. As yields come down in Brisbane and Adelaide due to the stellar capital growth, this may bring investors back to Melbourne and Sydney. But are the Victorian landlord reforms with heightened landlord obligations turning investors away? And Victoria isn't the only state to roll out rental reforms. We are watching this space... 6. How listings impact housing value growth The clear picture from the data that we're studying is tha...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates Market conditions changing as more stock comes online With Easter just around the corner, greater stock on the market is giving buyers more choice and the rate of pass-ins continues to shine a spotlight on slightly eased conditions for buyers. The last weekend of February saw the highest number of auctions ever, since CoreLogic first started recording this data. With a number of public holidays drawing near, we can expect the lead up to April to be just as busy. We've seen significant shifts in the market, but you'll have to tune in to next week's episode to get the full picture. Case study - Do we renovate and invest, sell and upgrade, or keep and upgrade! 1. Meet Neil and Amy - the conundrum This case study revolves around clients Neil and Amy (names have been changed), a professional middle-aged couple who live in one of Australia's major capital cities. Their goal is to achieve a good quality standard of living, both now and into the future. Neil and Amy were stuck on deciding their next move. Do they: •Sell the existing home and buy a new home; or •Keep the existing home as an investment and purchase a new home; or •Keep the existing home, undertake renovations, and purchase an investment? 2. Unpacking their goals and financial overview The trio discuss Amy and Neil's lifestyle and investment goals, their financial circumstances, the level of funds they have to play with for their next decision and Dave explains how he navigated them through their money goals and he asked questions such as; what available funds did they want up their sleave after the purchase?, and how much can they save each month with their surplus cash flow? Setting smart 'Money Goals' is a foundational element of effective Property Planning. Money goals are the limit that allows you their clients to rest comfortably at night and these goals are linked heavily to a particular client's appetite for Risk. 3. Getting on the same page - risk profile analysis Neil and Amy both shared a conservative attitude toward risk, however with different approaches on how best to manage their risk. Attitude towards risk is a significant piece of the property strategy puzzle. Inaction or delaying decisions between couples is typically due to the inability of the couple to get on the same page. The trio share how to bridge the divide that holds couples back from making successful decisions. 4. Reviewing the existing home If you are thinking about retaining the current PPOR, there are important questions to ask yourself. If your plan is to turn it into an accidental investment property - have you considered whether the property has investment grade qualities, and are you able to optimise your tax deductions? Or if you think you would be happy living in it for the long-term - are you happy with the location and does the dwelling suit your future needs? Or does it need some work? Being honest about your property is critical to seeing clearly. 5. Modelling the scenarios The trio unpack the pros and cons of the three scenarios that were presented to Neil and Amy for their next decision and each outlines their preferred scenario. Scenario 1 - purchase the long-term home for $1,600,000 and sell the existing home. Scenario 2 - Purchase the long-term home for $1,300,000 using equity in the existing property which is retained as an investment. Scenario 3 - Keep living in t...

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates The power of compound growth Dave highlights why time in the market is such a key to success. It seems crazy that it took NSW almost 100 years to reach a total value of $1 trillion and only 7 years to then reach $2 trillion. But if you look at the numbers, the compound growth has actually remained fairly consistent. Why you should be prepared to put your hand up at auction Cate takes you through the current sentiment at the coal face which is causing many nervous buyers to avoid bidding for a property they really want and subsequently missing out. Many properties that have been passed in have been sold within minutes, so make sure you throw your hat in the ring to get first dibs on negotiating with the vendor. Listener questions Why has my dwelling gone up in value when the building is a depreciating asset? The trio sink their teeth into this interesting case study posed by one of our listeners who purchased a house and land package in 2020 and was surprised to find that the value of his dwelling had increased in value since then. How is that possible when the land is the appreciating asset and the dwelling is depreciating? Have we been wrong all this time? When should you purchase property in a trust? Trusts can be confusing and complex structures to set up and you may get conflicting advice from various professionals on the matter. So, what should you do? The trio discuss the pros and cons of purchasing property within a trust and how to source the advice you receive from your lawyers, accountants and financial planners. Don't forget to check out our show notes for some more educational material on trusts and property ownership. The impact of the media on the property market One of our listeners was keen to open a can of worms and asked the trio "do you think the media is culpable in how they report these days because they impact sentiment, and do you see it as an opportunity to invest because you know your fundamentals and are happy to take advantage of a jittery market?" The trio talk through this ripper of a question and how to vet the media noise that we are bombarded with daily. Visit the show notes - https://propertyplanning.com.au/listener-questions-why-has-my-dwelling-value-increased-when-its-depreciating-pros-cons-of-trusts-media-impact-on-property-ep-142/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Similarities between the car market and property market The trio discuss their experiences of trying to purchase a car in the last 12 months and how this closely follows the experience of many budding property purchasers. Cate shares a sneak peak of our next episode, which will be addressing a question from our listener, whose brand-new dwelling has gone up in value. They all share one key theme, can you guess what it is? 2. Return to the CBD Cate shares that for the first time in her career as a buyer's agent, she has a significant number of clients that are looking to purchase inner city property. There has certainly been a shift back to apartment living in the CBD, particularly for those who chose to live regionally during covid lockdowns and wish to retain a city 'pad', but there are limited quality apartments blocks. 3. How does consumer sentiment relate to property price growth Dave shares his research on the consumer sentiment index and how the sentiment statistics correlate to national property value growth. Can they give an insight into the future? The results are fascinating. Check out the show notes to take a look at the graphs. The Q to T of Property success Q - Qualifications that property professionals (should) have The trio discuss the qualifications required to become a property investment advisor (you may be surprised at the answer!) and how mandatory qualifications apply to other professionals such as buyer's agents, real estate agents, financial planners, mortgage brokers and building and pest inspectors. As a consumer it's important that you choose your trusted advisors wisely and ask them their level of experience before you make a decision on who to partner with. Cate shares a hot tip for our listeners on how to spot the red flags. R - Refinance, when and why should you do it Dave shares with you the 12 benefits to refinancing and why you should consider reviewing your mortgage strategy. But refinancing is not the best option for everyone, and the trio discuss when refinancing is a bad idea. S - Sale to Settlement, and everything in between So, you've just purchased, what happens next? Cate takes us through the various moving pieces that need to be organised prior to settlement. A word of warning, if your legal representative or mortgage broker asks you to do something, put that at the top of your priority list. The trio discuss what not to do and why you should always clarify the status of your pre-approval and expected settlement timeframe with your mortgage broker before putting in an offer. T - Tax and why you need a great accountant The trio discuss how capital gains tax is calculated, land tax, GST and margin schemes. Do any of these apply to you? Some are only related to property development and if you'd like to dip your toe into the development pond, finding a good accountant who knows their way around property tax is step number one. Visit the show notes to access our other episodes where the trio dive into tax in more detail. Visit the show notes - https://propertyplanning.com.au/the-q-to-t-of-property-success-ep-141/

Ask the trio a question - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Brisbane and Adelaide show no signs of slowing The trio discuss the home value index results for January, with Brisbane and Adelaide continuing the trend of above 2% monthly growth, while other capitals are slowing down. January tends to be a distorted month as many agents and vendors shut up shop for the holidays. We await the February results to get a better gauge on the market. 2. Rental conditions easing Rents have been flying along for the last year, although the quarterly pace of growth has been easing from 3.2% increases in March 2021 quarter to 2% over the three months ending in January 2022. Unsurprisingly, Sydney and Melbourne remain the only capitals in which rental yields are averaged at below 3%. Cate shares some insights on why available rental stock listings in the Melbourne CBD market have plummeted over the last 9 months. 3. Listings and the correlation between property growth rates The trio discuss the level of old listings, new listings and total listings and how this has a direct correlation with value growth in our capital cities. 4. Consumer sentiment Consumer sentiment continues to remain negative when considering whether now is a good time to buy a dwelling. However the house price expectations index fell below 150 points for the first time since January 2021. While expectations on the East Coast dropped, house price expectations took a big upwards swing in Western Australia. The trio discuss the potential drivers of this shift in sentiment. 5. Lending indicators While 2021 was largely the year of the returning investor, lending indicators for December show an increase in owner occupiers greater than that of the measured increase in investors. The trio discuss whether this is an early indicator of the turning of the tide. 6. Unemployment drops again Kudos to South Australia for achieving the lowest unemployment rate ever recorded at 3.9%. However, the trio note that being one of the smaller states in terms of per capita, the data can be more volatile. Nationally unemployment decreased from 4.6% to 4.3%, which is a good news story for the government heading into an election. 7. RBA announcement Governor Lowe has softened his stance on cash rate increases, saying now that it could be 'plausible' for cash rates to rise this year. While inflation certainly has picked up, it's too early to conclude that inflation is sustainably within the target band to increase the cash rate and wages growth remains an issue. Most economists expect that any rate rises on the horizon will not come before August. 8. Inflation The latest data from the ABS shows CPI has increased 1.3% over the December quarter and 3.5% over the year. However, when making monetary policy decisions, the RBA looks at the trimmed mean, which excludes any outliers that can skew the data, which has increased to 2.6%, the highest since June 2014. The trio discuss the contributing factors driving inflation. 9. Will the election announcement have an impact on property prices? The trio discuss the forthcoming federal election and whether we'll see a slow-down in market activity and property price growth in the lead up. Visit the show notes - https://propertyplanning.com.au/market-update-january-22-ep-140/