February 28, 2022

#142: Listener questions - I bought a house and land package, the land AND dwelling have increased in value, how can that be? Pros and cons

42 minutes

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/

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