Everyday Property Investing

By Kaz Young | Property Investing and Real estate investment education and advice

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FAQs about Everyday Property Investing:

How many episodes does Everyday Property Investing have?

The podcast currently has 10 episodes available.

Everyday Property Investing episodes:

April 20, 2023EPI157 | Residential Investment Strategies – Buy and Hold for Capital Growth
Property Investing Strategy – Part 2
Buy and Hold for Capital Growth
Aim is to hold property that grows in value over time
Example
Property purchased in Sep 2019 for clients in Cannon Hill, Brisbane
Purchase price $730,000
Rental yield was approx 4.4% (based on 100%LVR) so would have been negatively geared
No renovations or alterations undertaken
Current estimated value is $1.1m
$370,000 increase in value (50%) in 3 years
Timing here was very fortunate as purchased just a couple of years prior to huge growth cycle
Expectations around growth – what is realistic, what is good? This example is not indicative of every purchase.
Aiming for areas that have high capital growth
Often negatively geared

Why use this strategy?
Access equity to purchase another investment
Rent- investors can sell to help them buy an upgraded home they could otherwise afford
Park money and earn more than you might if you left money in the bank
The biggest reason is to build wealth to support or supplement retirement.
3 ways to do that
Build equity sell some down
Pay off some and live off of rental income (?difficult)
Sell all and put funds into another investment vehicle that supports retirement
Financial planners want to see $1.2 million nett in cash for retirement if your aim is to earn circa $60K pa in retirement

How is high growth buy and hold achieved
Comes down to area selection
Asset selection
Meeting the growth fundamentals for the type of property you are purchasing.
Criteria for a house will be different to a townhouse, apartments etc

How to maximise asset selection for growth
Location
Infrastructure projects – transport, healthcare, university, community facilities, large shopping chains (e.g. bunnings)
Transport corridors
School catchments
Population growth
Shopping precincts closeby
Ripple suburbs – income growth, gentrification, cafe culture
Historic Growth – discuss
Water
Property
Features that suit the demographic
Land size
Yard
Kitchen
Outdoor entertaining
Good floorplan
Light and bright
Low maintenance – flat block, simple garden
Well maintained
Owner occupier and rental appeal

Pros and Cons of this strategy – buy and hold for Capital Growth
Pros
Builds wealth
With a big upswing in growth can make a lot of money
Losses offset taxable income
Capital growth has a compounding effect, so the sooner you get into the market the more gains you will enjoy
Excellent passive strategy (Less moving parts. Less project mgt)
Accessible to most people (ie – developing might not be for some people, whereas this is)
Types of properties and areas that are typical for this strategy are usually acceptable by banks with 90-95% LVRS often possible depending on the individuals circumstances
If held long enough, very forgiving
Lower risk (when fundamentals followed) than other strategies
SMSF friendly
Cons
Losing money so need to be able to sustain that (ie require spare cash to be able to cover the shortfall between the rent and outgoings)
Limited capacity to repeat depending on available disposable income
Interest rate hikes can make holding properties difficult
Forecast growth is not guaranteed, based on speculation
What’s next
In the upcoming episode we’ll look at positive cashflow property.
The post EPI157 | Residential Investment Strategies – Buy and Hold for Capital Growth appeared first on Everyday Property Investing.
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54min
November 18, 2022EPI156 | The how, why and what of property investing strategy
Property Investing Strategy – Part 1
The how, why and what of property investing strategy
Overview – Goal/purpose vs Mechanics
All property strategies aim for one or both of the following
Capital Growth
Income/yield
How we achieve these outcomes is where the mechanics of a strategy come in:
Buy and Hold
Positive Cashflow
Renovation
Development – DA, strata title, subdivision, building
Rooming accommodation
Short Term accommodation
Often various strategies may be combined within the one project – e.g. subdivision/renovation/building

Why is choosing a property strategy important when people start out investing?
Start with the end in mind
Having a strategy allows you to choose a state, region, suburb and property,
Without a strategy you have no criteria to determine if a property is good for you personally
Many good properties, but if they don’t fit the strategy it isn’t a good property for you
Is there one best strategy everyone should follow?
What are some of the mistakes people make when choosing a property strategy?
Not understanding when and why to use certain strategies
Choosing a strategy that is exciting, popular at the time but doesn’t link to the investors goals or investor situation
Choosing high risk strategies with only positive expectations (ie not considering or understanding the risks)
Thinking you have to do just one thing
Thinking one strategy is going to be perfect
What do people need to consider when choosing a property strategy?
Finances (what you have yourself or can access via bank or other methods)
Cashflow required to hold the property
Time frame
Risks & risk profile
Back up plans
Personal strengths and weaknesses
Negative gearing is not an investment strategy – it is a by product of investing
Negative gearing (note: it’s not a ‘strategy’) – What is it, pros, cons
Pro – better locations – tenant demographics, capital growth
Pro – tax advantages
Con – making a loss
Con – can only do this so much before no serviceability
Positive gearing – What is it, pros and cons
Pro – Not making a loss!
Pro – Maintains (or potentially improves) serviceability, so more sustainable
Pro – can use the excess income to pay down the property or invest in others
Con – pay tax on income (I don’t really see that as a con)
Con – usually regional or outer suburbs – tenant demographics, lower growth
Con – hard to find
Con – if only slightly then would need a lot of them
What’s next
In the upcoming we’ll address each of the various strategies in more detail and talk to some experts and investors out there using these.
The post EPI156 | The how, why and what of property investing strategy appeared first on Everyday Property Investing.
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45min
September 14, 2022EPI155 | Selecting a Property Manager
Selecting a property manager

Selecting a Property manager to interview
Ask for referrals – BA, other investors
Google reviews
Look at the website – is it modern, updated, review staff profiles
Interviewing
How many rentals does the agency manage
how many staff and their experience
How many rentals per manager – around 100 – 120 per staff member
How involved is the principal in the property management
Do you have an assistant or do you handle everything from start to finish
How long have you been a property manager?
How long have you been working for that office?
Processes:
Rental arrears:
Process on rental arrears
% of current tenants in arrears on rent and invoicing
Process around routines, are they done in-house or outsourced
Process around maintenance
Give them some scenarios – if a tenant is 8 days behind what do you do? Will you contact me?
Fees and charges
Investment property earning $650pw rent
8% fee – $52 ($7.50 difference)
7% fee – $45.50 ($6.50 difference)
6% fee – $39
Go with your gut – if you don’t have a good feeling on the phone
Judge them on their communication and responsiveness during the ‘courtship’ phase
A word on self management
The post EPI155 | Selecting a Property Manager appeared first on Everyday Property Investing.
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50min
August 31, 2022EPI 154 | Challenges with Property Management
Challenges with Property management
In this podcast episode we discuss some of the challenges experienced with property management, including:
Communication
Not responsive to emails
Doesn’t return calls
Large rent roll
Portfolio – Pod – Task based
Not enough staff
Low fees vs Good Service
Change of managers
Replace with juniors or lower quality
Bounce around between managers – no consistency (staff turn over)
BDM bait and switch
Management of maintenance
Not reporting maintenance
Maintenance approved but not actioned
Management of tenants
Routines not on time
Not keeping tenant to acceptable standard
Reactive management rather than proactive management
Constantly having to follow up the manager for routines, maintenance,
anything!
The post EPI 154 | Challenges with Property Management appeared first on Everyday Property Investing.
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51min
August 10, 2022EPI 153 | Nuances of negotiation – part II – what can go wrong
The Nuances and negotiation – part II
In this follow up negotiation episode Kaz and Lisa discuss three things that can go wrong in negotiation and how to avoid these things.
Death by solicitor
Distrust of agents and agents colluding
Getting it too easy
The post EPI 153 | Nuances of negotiation – part II – what can go wrong appeared first on Everyday Property Investing.
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34min
August 03, 2022EPI 152 | Nuances of negotiation – part I
The Nuances and negotiation – part 1
Lisa Parker and Kaz Young have learnt a few things over years as professional buyers agents. In this episode they are important tips for successful negotiations. Tackling more than just the standard rules and strategies, they talk about the subtleties of negotiating in part 1 of this discussion.
A lot of people are involved in the negotiation process. Not just vendors and buyer. Agent, buyer agent, lawyers, family members (especially when it is a deceased estate or elderly moving into care).
Determine the priorities of other parties and impact of these
Look for a Win/win where possible
Don’t let it be personal
Be the preferred buyer
Don’t sweat the small stuff
The post EPI 152 | Nuances of negotiation – part I appeared first on Everyday Property Investing.
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40min
July 26, 2022 EPI 151 | Rental reforms for property investors
Rental Reforms for Property Investors
Changes to rental legislation in Victoria are now around 12 months old. These changes to the responsibilities of tenants and owners have had a significant impact on investors and in this episode we speak with Megan Stuart, from Mint Property Management to outline the legislative changes and their impact. With similar legislation having rolled out or being implemented in other states, this discussion is relevant for all property investors.

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44min
July 13, 2022EPI 150 | Property Development – Justin Gehde
Property Developer – Justin Gehde
In this episode, Kaz interviews long time Everyday Property Investing listener and Property Developer, Justin Gehde about his journey into the world of Property Development, including the pros and cons of developing and what it takes to be a good property developer.
Learn more about Property Development
Check out Justin’s podcast and property developer training course:
The Property Developer Podcast
Property Developer Training
Other related podcasts
You can also checkout episodes 25,26 and 27 with Troy Harris where we covered property development.

The post EPI 150 | Property Development – Justin Gehde appeared first on Everyday Property Investing.
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46min
July 07, 2022EPI 149 | Stamp Duty Reforms – What do they mean?
What is stamp duty?
(From Business.gov.au)
Stamp duty is a tax that state and territory governments for certain documents and transactions such as:
Vehicle registrations and transfers
Insurance policies
Leases and mortgages
Hire purchase agreements
Transfers of property (business, real estate, some shares)
With respect to stamp duty on a property purchase this is usually paid in a lump sum up front by the buyer as part of the transaction so it forms a big ticket cost item that buyers have to have ready and available in order to purchase. Typically, as a purchase cost, it’s not part of a home loan and so this large sum really eats into the deposit funds of buyers and so impacts on affordability of housing and makes it more difficult for homeowners to move.
The amount is dependent upon the transaction and also the state or territory in which the transaction takes place but to give you an idea – for an investment property purchase of $800,000 with the average cost being around $35k. It represents around 25% – 28% or so of state taxes collected and so is a big ticket income provider for state governments also. Note that there are often concessions available for some groups, for example, home buyers, first home buyers.
What are the proposed reforms?
Housing affordability is a big ticket item and always is. The reason this has become topical is that the NSW State Government has proposed changes to the way stamp funds are collected to potentially, improve housing affordability. The actual proposed changes are that first home buyers, buying a property under $1.5m would be given the choice to either: Pay stamp duty up front OR to pay an annual property tax over on an ongoing basis.
First home buyers will pay an annual property rate of $400 plus 0.3 per cent of the land value of the property each year.
Eg land value $500K = $1900 pa
Investors – $1,500 plus 1.1 per cent of land value for investment properties.
Eg Land value $500K = $7,000 annual tax
You can read more about the specifics of this proposed change on the NSW state government website.
How will this change impact?
It is likely that this would roll out across all states over time. Also likely that this would be extended to all home buyers and to investors.
Pros
Help first home buyers
Reduce transaction upfront costs
Encourages transactions rather than making a barrier
May encourage downsizing to apartments (because the land value is lower, therefore the annual tax would be lower and price points will be under the $1.5m threshold)
More opportunity for flipping as transaction costs are lower, improving profitability
A more predictable and stable tax over time for government
Opportunity for developers and renovators to cater to the market and win
Investors could follow the roll out around the state if an investor who flips – buy unrenovated, renovate for target market, this sector of market should see upward growth in short period, investors have a window to capitalise
Cons and potential threats
If you hold the property long term then it could become more expensive than the upfront tax as it’s a ‘forever tax’
The amount would be increased over time with indexation and increased land value of property
Older homeowners with little income (e.g. pensioners) may struggle with this increasing and ongoing tax
If you stay in a property long term and continue to pay this tax you would be significantly behind compared to the current lump sum scheme.
The post EPI 149 | Stamp Duty Reforms – What do they mean? appeared first on Everyday Property Investing.
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31min
June 20, 2022 EPI 148 | Taking charge of your property journey
Are you one of the many people who have always planned to invest in property but for some reason just never quite got going? Or perhaps one of the many people who maybe purchased one investment property and had great plans to build that portfolio but just….got busy?
Then this is the episode for you! In this episode we’re going to talk about how to take charge of your property journey. Lisa and Kaz talk about getting clear on your property goals, identifying barriers and how to overcome them.
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36min

FAQs about Everyday Property Investing:

How many episodes does Everyday Property Investing have?

The podcast currently has 10 episodes available.