The Property Trio (formerly The Property Planner, Buyer and Professor)

#92: Property planning and your next purchase - critical considerations and why modelling financial outcomes is vital to success


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https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#73 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Business confidence reaches decade highs According to the NAB monthly business survey, business confidence rose further in February to reach 16 index points, its highest level since early 2010. Whilst we're still not on the other side of the pandemic, it shows the human psyche of bouncing back from difficult circumstances, and also demonstrates the power of social proof to build confidence. 2. GDP growth revised up by the OECD The forecast for GDP growth has been upgraded from 3.2% to 4.5%, which puts Australia on the top of the Covid-19 ladder for the strongest bounce-back economy for 2021. 3. Properties in the top quartile show outstanding growth According to CoreLogic, properties in the top quartile of value are growing at the fastest rate. Historically, other downturns and recessions have demonstrated that top quartile properties drop fastest in the downturn and rise the quickest in an upturn. 4. Price as a function of supply and demand The Property Professor shares insights that draw a correlation between new finance commitments compared with total listings to paint the picture of supply and demand driving value growth. 5. What's driving the market in Ballarat? Renters are opting to purchase as mortgages are now more affordable than ever. Facing rents of 4.5% versus 2.0% for a mortgage is an opportunity many locals are taking advantage of. Property planning & your next purchase 1. Peeling back the onion to determine the pathway forward The Property Planner shares the layers of steps to be taken and decisions to be made to come to the right outcome for your next property decision and your long-term portfolio plan. The key is to understand that investment decisions are intertwined with your lifestyle and family choices. 2. Achieving clarity for your long-term goals and your next decision Keep your binoculars and magnifying glass handy as you go through the journey of seeing your long-term goals with clarity and focusing in detail on your next decision. The pathway in between may change as you go through life, but having one eye on the end outcome and one on the next step will help you get there. 3. Hold or fold? The trio discuss the considerations, emotions and cognitive bias that factor in to making decisions about property you already own. What holds people back from making these decisions and why might you keep a property that is not performing? 4. Timing a property divestment The Property Professor shares key tax considerations to be mindful of when putting together your divestment strategy. 5. Selling property - two sides of the coin Understanding whether a property you own is top quality is only one side of the coin. The other side is understanding what you will be able to achieve by selling and is paramount to making successful property decisions. 6. Planning for the flexibility stage of life As we're working for longer, it's more common now to scale back work, rather than stop abruptly. You've still got investment decisions to be made post-retirement, you may not be on the same retirement timeline as your partner and your debt consolidation and divestment strategy need to take that into account. 7. Modelling your next property decision The best way to make an informe...
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The Property Trio (formerly The Property Planner, Buyer and Professor)By Cate Bakos, David Johnston and Mike Mortlock

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