Brick to the Future: Property Investment Show

This episode provides insights into the current challenges of the Australian property market and offers practical strategies for parents to support their children's future financial stability through smart property investments.

Introduction:

• The podcast focuses on providing property investment strategies to everyday Australians.
• Emphasis on minimizing risk and making informed investment decisions.

Discussion Overview:

• Cam McClellan's appearance on the Today Show about the "Bank of Mum and Dad" generated significant interest.
• The main topic is how parents can assist their children in entering the property market.

Challenges in the Property Market:

• Australia's property market is facing a supply-demand imbalance with rising prices and population growth.
• Current building approvals are significantly below the ten-year average, exacerbating the issue.
• McClellan's concern is that young adults will struggle to save enough for deposits in the future.

Strategies for Parents:

• McClellan advocates for parents to invest in property now to help their children in the future.
• He discusses a strategy of buying property with a current deposit, allowing it to appreciate over time.
• This approach aims to provide a substantial financial benefit to children without "silver spoon feeding" them.

Implementation:

• McClellan emphasizes the importance of setting up a trust structure to manage the property investment.
• He explains that parents can control the property through a trust, with children as beneficiaries.
• This structure ensures clear agreements and prevents conflicts among siblings.

Key Takeaway's:

• McClellan stresses the urgency of making decisions now due to the ever-increasing property prices.
• He encourages parents to consider whether to assist their children immediately or wait until later.
• The podcast ends with a call to action for parents to help their kids enter the property market before prices become prohibitive.

Resources Mentioned:

• Download Cam's Book "My Four Year Old The Property Investor"
• Listener Feedback: We love hearing from you! Share your thoughts on this episode and suggestions for future topics by leaving a review or contacting us directly through our website.

Sponsor:

• This episode is brought to you by OpenCorp. Helping everyday Australians achieve financial independence through smart property investment. Visit OpenCorp to learn more. Thanks for tuning in! If you found this episode valuable, please share it with your friends and family. Stay tuned for more insights on making smart property investments and achieving financial independence.

Enjoy the episode and happy investing!

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Twitter: @OpenCorp_au
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Instagram: @OpenCorp

A common question we get asked at OpenCorp: How can I hold multiple properties while I'm still paying my mortgage and dealing with the cost of living? Michael Beresford,  Executive Director - Property & Investment Services, gives a quick masterclass on how that works.

Highlights:
A masterclass on how to hold multiple properties while still managing a mortgage and dealing with the cost of living.

Property Selection: The type of property you buy significantly impacts how much it will cost you to hold the investment. Properties with higher rental income and tax benefits are preferable.

Maximizing Rent and Tax Benefits:

Rent: Due to the rental crisis, rents are increasing, allowing investors to treat rental income increases as a form of pay rise.

Tax Benefits: New properties often offer greater tax benefits compared to established properties, which can amount to an extra $100 per week—enough to help hold a second property.

Tax Variation Form: Investors can use a tax variation form to receive tax benefits throughout the year rather than waiting until the end of the financial year. This can provide additional monthly income to cover holding costs.

Real-World Example: An example from a recent client demonstrated how a property that was initially cash flow positive turned slightly negative due to rising interest rates. However, the increase in rent and tax benefits helped maintain the property with minimal out-of-pocket expenses. Watch the Real World Example discussed here: https://bit.ly/3X4yGDj

Cost of Waiting: The importance of taking action rather than waiting for perfect market conditions, as waiting can significantly increase the cost of holding a property.

Conclusion: By strategically selecting properties, maximising rent and tax benefits, and using tools like tax variation forms, investors can hold multiple properties without negatively impacting their lifestyle. This approach has been successfully applied by OpenCorp for over 20 years.

Watch the Real World Example discussed here: https://bit.ly/3X4yGDj

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Twitter: @OpenCorp_au
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In this episode, we dive deep into the critical aspect of property investment: making the right property selection. With properties worth hundreds of thousands of dollars, the stakes are high, and the most common mistake investors make is choosing the wrong property. Cam McLellan introduces the MAP process—Market, Area, Property—a tried-and-tested method for selecting winning properties. Developed over 20 years, this process helps investors navigate Australia's complex property landscape and avoid costly mistakes.

Highlights:

• Introduction to the MAP Process: Understanding the importance of a systematic approach in property investment. The MAP process—Market, Area, Property—ensures that investors make data-driven decisions rather than emotional ones.
• Why Most Investors Get Stuck: Exploring the common pitfalls, such as buying property in familiar postcodes and the lack of a structured approach, which leave many investors with just one property.
• Step-by-Step Guide to the MAP Process:
  • Market: Identifying the best capital cities and regions for investment based on current market cycles.
  • Area: Focusing on growth corridors within selected markets, taking into account factors like infrastructure, job diversity, and urban growth boundaries.
  • Property: Zeroing in on the optimal property type and size for the area, considering factors such as land content ratios, proximity to amenities, and overall investment potential.
• Data-Driven Decisions: Emphasizing the role of data analysis in the MAP process, with OpenCorp's team of data scientists dedicating around 19,000 hours annually to research and analysis.
• Avoiding Overcapitalization: Tips on how to avoid overcapitalizing by understanding the local market and ensuring the property value aligns with the area.
• The Importance of Expert Guidance: The benefits of working with experts who have a structured process and deep market knowledge to ensure the best investment outcomes.

We love hearing from you! Share your thoughts on this episode and suggestions for future topics by leaving a review or contacting us directly through our website.

Sponsor:

• This episode is brought to you by OpenCorp. Helping everyday Australians achieve financial independence through smart property investment. Visit OpenCorp to learn more.

Thanks for tuning in! If you found this episode valuable, please share it with your friends and family. Stay tuned for more insights on making smart property investments and achieving financial independence.

Enjoy the episode and happy investing!

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

This episode provides practical insights into how investors can unlock and use the dormant equity in their properties to fuel further investments, ultimately enhancing their property portfolios without additional cash outlay.

Introduction to Lazy Equity:

• Lazy equity refers to the unused equity in a property, which can be leveraged to make additional investments.
• The conversation opens with a discussion about how people often overlook the potential of lazy equity, leaving it "lazy" and unproductive.

Understanding and Using Lazy Equity:

• Explanation of "lazy equity" and example discussed in real terms; " if a property is valued at $1 million with a $500,000 mortgage, the difference ($500,000) represents potential lazy equity."
• This equity can be borrowed against to fund further investments, such as purchasing another property.

Strategic Use in Investments:

• By borrowing against lazy equity, investors can cover deposits, fees, and even construction costs for new properties.
• The importance of using this strategy to avoid out-of-pocket expenses and to maintain personal lifestyle without financial strain.

Common Mistakes:

• A significant mistake highlighted is underestimating the amount of lazy equity available or failing to utilise it effectively.
• Investors are advised to work with investment-focused brokers who understand these structures to avoid costly errors, such as underestimating interest costs during construction.

Practical Advice:

• Setting up an equity line that includes a buffer for interest payments during property development phases.
• The importance of separating home equity from investment equity to avoid cross-collateralization, which can complicate financial management.

Conclusion:

• Lazy equity is a tool for expanding one's property portfolio without additional cash input.
• Investors are encouraged to be smart about leveraging this equity to maximize returns while minimizing risks.

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Twitter: @OpenCorp_au
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Instagram: @OpenCorp

The Reality of the Bank of Mum and Dad in Today's Market

Description: In this episode, we dive into the growing trend of parents helping their children enter the property market, often referred to as the "Bank of Mum and Dad." Cam McLellan discusses the challenges young Australians face in saving for a deposit and how parents can creatively and responsibly assist their children. This episode offers practical advice for families looking to navigate the complexities of modern property investment.

Highlights:

• Introduction to the Bank of Mum and Dad: Cam McLellan addresses the common perception of young Australians relying on parental assistance to enter the property market, comparing today's challenges with those faced by previous generations.
• Economic Realities of 2024 vs. 1980: A look at the stark contrast between the property market and average incomes in the 1980s compared to today, highlighting why it's significantly harder for young people to save for a deposit.
• Strategies for Helping Kids Enter the Market: Discussion on various ways parents can assist their children, including the use of equity gifts, going guarantor, and joint ventures. These methods can help mitigate risks and responsibilities for both parties.
• Case Study: Pascal and Family: A real-life example of how one family used an equity release to help their child enter the property market. This segment provides insights into the process, benefits, and long-term goals of property investment.
• Practical Tips for Parents: Advice for parents considering helping their kids, emphasizing the importance of responsible financial planning and ensuring that children are involved in the process, including saving and understanding the financial commitments.
• Key Takeaways: Reflecting on the importance of starting early and thinking creatively to navigate the current property market challenges.

Resources Mentioned:

• Download Cam's Book "My Four Year Old The Property Investor"

Listener Feedback:

• We love hearing from you! Share your thoughts on this episode and suggestions for future topics by leaving a review or contacting us directly through our website.

Sponsor:

• This episode is brought to you by OpenCorp. Helping everyday Australians achieve financial independence through smart property investment. Visit OpenCorp to learn more.

Thanks for tuning in! If you found this episode valuable, please share it with your friends and family. Stay tuned for more insights on making smart property investments and achieving financial independence.

Enjoy the episode and happy investing!

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

What Returns Would You Expect from an Investment Portfolio?

In this insightful episode, Matthew Lewison and Michael Beresford from OpenCorp shed light on the impressive returns that can be achieved through smart property investment. They highlight historical performance, share compelling case studies, and discuss the importance of a tailored investment strategy. The episode is a must-listen for anyone looking to understand the potential of property investment and the key factors that drive success.

Speakers:

• Matthew Lewison (OpenCorp Co-CEO)
• Michael Beresford (Executive Director, Property & Investment Services)

Episode Summary: In this episode, Matthew Lewison and Michael Beresford discuss the expected returns from an investment portfolio, specifically focusing on residential property. They delve into historical performance, comparison with other asset classes, and strategies for maximising returns.

Key Points:

• Residential Property Outperformance:
  • Residential properties have outperformed other asset classes in Australia over the last 60 years.
  • Property can be geared more than other asset classes, enhancing returns.
• Historical Returns:
  • The Australian property market has achieved about a 9% per annum return over the last 18 years.
  • OpenCorp clients have seen an average of 11% per annum on total portfolio returns
• Common Pitfalls:
  • 70% of Australian property investors only own one property.
  • 80% borrow to buy established or old houses, missing out on depreciation benefits.
• OpenCorp's Strategy for Success:
  • Customised strategies based on individual income, tax position, and goals.
  • Emphasis on structure, strategy, and repeating proven methods.
  • OpenCorp clients are 2.5x more likely to own two or more properties than the average investor.

  If you're interested in learning more about how you can achieve similar returns through strategic property investment, book a strategy session with OpenCorp today at opencorp.com.au. 

Our experts are ready to help you build a portfolio that aligns with your financial goals and maximises your investment potential. Don't miss this opportunity to take your property investment journey to the next level!

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Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Hosts:

• Cam McLellan, CEO of OpenCorp
• Michael Beresford, Director of Investment Services

Episode Overview:
In this episode, Cam McLellan and Michael Beresford tackle the buzzword "hotspots" in the property market. They uncover what really makes an area a hotspot and discuss the reliability of hotspots for long-term property growth. The conversation offers a deep dive into why chasing hotspots might not be the best strategy for smart investors.

Key Points Discussed:

1. Definition of Hotspots:
   • Areas that have seen rapid growth, often due to media hype or vested interests.
   • Created by high demand and reduced supply, leading to rapid price increases.
   • Developers may manipulate the market by drip feeding land to keep pressure on supply.
2. Reliability of Hotspots:
   • Buying in a hotspot often means paying an inflated price.
   • Smart investors aim to buy for value, not hype.
3. Countercyclical Investing:
   • Investing in areas before they become hotspots to maximise growth potential.
   • Clients of OpenCorp have enjoyed $254K+ more than the average property investment property thanks to our property selections.
4. Market Cycles:
   • Property markets typically have cycles of growth, correction, and stagnation.
   • Investors often buy at the top of the market due to confidence built from previous growth, only to face corrections and stagnation.
5. Smart Investment Strategies:
   • Avoid emotional decisions and hotspots driven by hype.
   • Use a proven, research-based process to identify growth corridors with planned infrastructure and limited land supply.
6. Importance of Expert Guidance:
   • Having a coach or mentor to guide through the investment process.
   • Formulating clear goals and strategies to achieve long-term financial success.

Summary:

• Hotspots: Often overhyped and can lead to buying at inflated prices.
• Smart Investing: Focus on areas with planned infrastructure and limited supply before they become hotspots.
• Expert Guidance: Seek mentors like OpenCorp to navigate the property market strategically.

Additional Resources:

• For a comprehensive guide on property investment and choosing the right mentor, get a copy of "My Four-Year-Old the Property Investor" by Cam McLellan. Get your copy here: https://opencorp.com.au/books/my-four-year-old-the-property-investor/

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Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Hosts:

• Cam McLellan, CEO of Open Corp
• Michael Beresford, Director of Investment Services

Episode Overview:
In this enlightening episode, Cam McLellan and Michael Beresford delve into the distinct roles of buyers agents, investment advisors, and real estate agents. They clarify the unique skill sets and purposes of each profession and guide you on choosing the right expert based on your property goals.

Key Points Discussed:

1. Real Estate Agents:
   • Primarily assist in buying or selling homes in specific areas.
   • Have detailed knowledge of local amenities and property listings.
   • Work for the seller to get the highest price possible.
2. Buyers Agents (Advocates):
   • Assist buyers in negotiating with real estate agents.
   • Follow the buyer’s instructions to find and negotiate the purchase of a property.
   • Do not typically provide extensive research or investment advice.
3. Investment Advisors:
   • Focus on long-term property portfolio building.
   • Offer step-by-step guidance, from goal setting to property management.
   • Conduct extensive market research to find the best investment opportunities.
   • Provide ongoing mentorship and support to grow your portfolio.

Summary:

• Real Estate Agents: Best for buying your own home in a specific area.
• Buyers Advocates: Ideal if you’re uncomfortable negotiating with real estate agents.
• Investment Advisors: Essential for building a profitable property portfolio with strategic guidance and support.

Key Takeaway:
Choose the right expert based on your goals. For home buying, a real estate agent is suitable. If negotiation is a challenge, hire a buyer's advocate. For strategic, long-term investment success, consult an investment advisor like Open Corp.

Additional Resources:

• For a comprehensive checklist on choosing the right mentor and investment group, get a copy of "My Four-Year-Old the Property Investor" by Cam McLellan. Get your copy here: https://opencorp.com.au/books/my-four-year-old-the-property-investor/ 

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Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

In this special crossover episode, we welcome Cam McLellan, an Aussie-based investment expert and author of "My Four Year Old The Property Investor." Cam shares his journey of setting his kids up for financial success from a young age, discussing strategies for teaching kids about money, investing, and the importance of making smart financial decisions early in life. This episode features insights first shared on the "Where's My Money" podcast, where Cam was invited as a special guest.

Highlights:

• Introduction to Cam McLellan: Get to know Cam, his background in property investment, and his mission to educate everyday Australians on building a solid financial future.
• Early Start in Investing: Cam shares his approach to getting his kids involved in property investment as young as eight years old, turning them into the youngest landlords in Australia.
• Financial Challenges and Solutions: Discussing the financial challenges facing young Australians today and how Cam's strategic planning can help bridge the gap between the haves and have-nots.
• Investment Strategies for Kids: Learn about the trust structure Cam uses to set up his kids for future success and the importance of teaching them the fundamentals of investing.
• Life Lessons in Money Management: Insights into the practical lessons Cam imparts to his kids, from saving pocket money to understanding the value of hard work and delayed gratification.
• Financial Independence for Everyone: Tips and advice for parents on how to model good financial behavior, avoid common money mistakes, and set their kids up for success, even if they can't afford to buy property right now.

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In this insightful episode, Michael Beresford interviews Kosta Maltaris, a Senior Property Strategist at OpenCorp, who is known for his exceptional expertise in helping clients start and build their investment portfolios. Kosta shares the most common questions he encounters from first-time investors, such as how to afford and hold an investment property on top of a home mortgage. He explains the financial benefits of investment properties, including rental returns and tax credits, which can significantly offset holding costs.

Kosta also discusses the right timing for investors to purchase their second property, emphasising the importance of having sufficient borrowing capacity and financial buffers. Highlighting the impact of the current tight rental market, he explains how low vacancy rates and rising rents can facilitate the holding of multiple properties.

The episode culminates with Kosta reflecting on his personal investment journey, which began 15 years ago. He shares a poignant lightbulb moment from his early days, inspired by his father’s hard work and the desire for quality family time, which steered him towards property investment.

Inspired to start or expand your own property investment journey? Connect with Kosta and the team at OpenCorp to discover how you can build your wealth through real estate. Visit OpenCorp’s website for more information.

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Twitter: @OpenCorp_au
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