Performance Property Data

David is joined by Heath Bedford, Director of Acquisitions at Performance Property Advisory, to chat about vacancy rates. This is a measure of the undersupply or oversupply of vacant properties in an area, and it can have impacts on rental prices. David and Heath take a look at two contrasting examples exhibiting one of the best vacancy rates in the country (Hobart), and one of the worst rates for investors (Perth).

Performance Insights is one of three segments you will hear on the Performance Property Data podcast. They are released every Wednesday and Friday, giving you technical knowledge and the lowdown on key property markets around Australia.

Property Insiders are released monthly and feature conversations with investment industry leaders offering knowledge and expertise.

And The Property Pineapple is also released monthly, bringing you real-world experiences of actual investors.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au

David is joined by Heath Bedford, Director of Acquisitions at Performance Property Advisory, to chat about vacancy rates. This is a measure of the undersupply or oversupply of vacant properties in an area, and it can have impacts on rental prices. David and Heath take a look at two contrasting examples, exhibiting one of the best vacancy rates in the country (Hobart), and one of the worst rates for investors (Perth).

Today we'd like to bring you a special bonus episode that was recorded for the Sydney Property Buyer Expo in late October.

Our Director of Acquisitions, David McMillan gave a talk at the expo entitled "Preparing for the Coming Storm", offering tips and advice about not losing money. Here, he talks to radio station 2UE in Sydney, about some of the topics he covered in the talk…

Join us on Wednesday and Friday every week for Performance Insights, one of three segments you will hear on the Performance Property Data podcast. They'll give you technical knowledge and the lowdown on key property markets around Australia.

Property Insiders are released monthly and feature conversations with investment industry leaders offering knowledge and expertise.

And The Property Pineapple is also released monthly, bringing you real-world experiences of actual investors.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au

Today we’d like to bring you a special bonus episode that was recorded for the Sydney Property Buyer Expo in late October.

Our Director of Acquisitions, David McMillan gave a talk at the expo entitled “Preparing for the Coming Storm”, offering tips and advice about not losing money. Here, he talks to radio station 2UE in Sydney, about some of the topics he covered in the talk…

"Money is the root of all evil, but if you haven't got it, it's worse."

This month on Property Insiders, David sits down with Kevin Agent from the Australian Lending and Investment Centre to chat about cash buffers.

A cash buffer is an amount of money you have in a special account that is there if something happens beyond your control.

Kevin tells David that there are two options for the cash buffer: to have it in a redraw account, or in an offset account. There are advantages to each, but Kevin thinks if you have a home loan, your cash is better off in a redraw account, and an offset account for an investment property.

A redraw account is money you use to pay off your loan, but is then accessible should you need it later on. An offset account is essentially a savings account where the balance is subtracted from your total loan amount, thus reducing your interest.

Kevin says his preference is always for an offset account, but for those who are not as good with saving money, a redraw may be a better option as the funds are often more difficult to access and the money feels like it is gone.

Some banks offer multiple offset accounts, which can then work like a budgeting tool that also reduces your debt. The money can then be used for future purchases.

Kevin says that some of the situations that arise where people might need to use a cash buffer include losing a job, falling on hardship, or even if you want to make purchases or go on a holiday.

A cash buffer is essentially about not having to worry and the amount a person has in their cash buffer account is whatever will help them sleep at night. However, Kevin says that it is a good rule of thumb to have about 3 to 4 months of repayments in reserve; at least $20k per $1M of debt.

Kevin continues by saying that he believes that unless your intention is to live in the property, the preference would be to not pay off the loan. Rather, keep the money in an offset account to reduce the cost of your loan, and then the money is there if you ever need it.

Finally, Kevin stresses that minimising risk is not just about having a cash buffer, but also about having insurance, cash reserves, and above all, purchasing the right asset.

About your host, David McMillan

During his 16 years in the property industry David has worked as a property valuer and property adviser to private clients, financial planners, accountants, finance brokers, major banks and governments. He has been involved in more than $500M worth of transactions across Victoria, New South Wales, South Australia & Queensland.

Since 2009, David has been specifically focused on helping medical professionals, expats, business owners and busy executives build effective property portfolios.

David is a fully licensed real estate agent in Victoria, South Australia and Queensland (CEA), Certified Practicing property Valuer (CPV), Qualified Property Investment Advisor (QPIA) and most importantly is an active property investor. David joined the Australian Property Institute in 2001 and is now an Associate (AAPI) and in 2009 became a member of the Real Estate Institute. David currently sits on the board of Property Investment Professionals of Australia (PIPA) to promote ethics in the property investment industry.

About David's guest, Kevin Agent

Kevin commenced his career in the banking and finance sector in 1985 and held senior management roles at the ANZ in both business bank and mortgage business with ANZ. His specialty focus is on credit risk and wealth creation where he has achieved outstanding results time and time again through maintaining and building trusted relationships with his clients.

Since the inception of The Australian Lending & Investment Centre six years ago, Kevin has become both an industry leader in his field as well as one of the highest ranked advisers in Australia. Kevin is constantly ranked in the Top 20 advisers nationally. Kevin bring over 25 years of commercial and retail banking experience along with a wide range of industry specialists to work with his clients.

“Money is the root of all evil, but if you haven’t got it, it’s worse.”

This month on Property Insiders, David sits down with Kevin Agent from the Australian Lending and Investment Centre to chat about cash buffers.

The Property Pineapple is one of three segments you will hear on the Performance Property Data podcast.

Property Insiders are released monthly and are conversations with industry leaders offering knowledge and expertise.

And Performance Insights are released every Wednesday and Friday, giving you the lowdown on key property markets around Australia.

For more information about how Performance Property Data can help you maximise your investment dollar, head to www.performancedata.com.au

Show notes…

Sharon invites real estate sales consultant, Matthew Hunt, into The Property Pineapple studio for a chat about his investment journey. Matt's story is particularly interesting, given he was only 21 when he bought his first property, and now, at age 23, is working on a sub-division of this property.

Matt lives and works in a suburb of Geelong, a city he says has changed a bit in the last 10 years. Infrastructure works are transforming the city, and many property investors are actually from Melbourne, who see Geelong as having good growth potential.

Matt's family is in the industry - his auntie a real estate agent, and father a financial planner - and he has been interested in property from a young age. He has always been a hard-worker, at one time during his high-school years, holding down four part-time jobs. Back then, most of his wages went into his previous passion: go-kart racing. But he gave that away to focus on his life goal of owning property and high-performance cars.

While he admits to not being the smartest kid in school, Matt says the key to his achievements has been hard-work and being focused on his goals. He acknowledges he has been fortunate to have the connections and opportunities he has had, but the choice to work hard is available to anyone.

Two years ago Matt bought his first property and set about making plans to sub-divide the block and build another property on the rear parcel. He had spent a good 9 months researching and looking, focusing on local infrastructure and potential for growth. This research involved him speaking to people with inside knowledge of the market and local planning.

Once he found a place he liked, it was unfortunately already sold. However, contracts weren't signed, so Matt made an offer and it was accepted. Barely passed his 21st birthday, Matt was now a homeowner.

The process of getting building approval for the sub-division took longer than he had expected - especially with the council - but he made things easier by approaching his neighbours and assuaging any concerns they may have had.

Things are progressing along well now, and once construction is finished, Matt plans to live in the new house, and put the original domicile on the rental market. A year from now, he wants to start the process again with a different property. This is all part of Matt's goal of having a portfolio of 40 properties.

In closing, Matt reiterates that his biggest asset is his work ethic and dedication to achieving his goals. He believes that anything is possible with a little time and effort.

About your host, Sharon Taylor…

Sharon heads up the research division at Performance Property Advisory. She is responsible for the aggregation of economic and property data sources, as well as deep analysis of the data to provide quarterly reports on each capital city of Australia.

These reports identify between 5 and 8 submarkets in each capital city, and provide an opinion as to the short term performance of each submarket. This information is vital for clients to maximise the performance of existing assets, and also for selection of new blue-chip investment locations.

About Sharon's guest, Matthew Hunt…

Matthew is a new-generation sales consultant, deploying new technologies, social media and cutting edge strategies to stay at the forefront of industry trends and extract every advantage out of the market. With 4 years sale experience, Matthew continues to be a market leader in the industry. The absolute professional, Matthew sets clear goals then sets out to make them happen. His "client for life" approach means trumping every property sale with not just a premium price, but also a premium experience for the vendor.

Sharon invites real estate sales consultant, Matthew Hunt, into The Property Pineapple studio for a chat about his investment journey. Matt’s story is particularly interesting, given he was only 21 when he bought his first property, and now, at age 23, is working on a sub-division of this property.

David gets together with Mark Davis from The Australian Lending & Investment Centre (ALIC) to chat around the question…

Why go to a broker instead of a bank to manage your property investments?

Through their discussion, David and Mark make the following points:

brokers tend to focus more investment lending, structuring, enabling you to create wealth;

banks are often more focused on rate, cross-selling, and their product;

ALIC has a focus on strategy and structure;

Mark: "I'm a really strong believer that you've got to be a specialist; you can't be a Jack of all Trades.";

with a focus on lending, ALIC work closely with other specialists in the field in order to best advise their clients;

ALIC keeps strong working relationships with only five banks;

brokers are able to tailor specific strategies and structures to your circumstances;

there's very few investment-focused brokers out there;

services the client misses out on going to brokers focused on home loans; and

a broker needs to understand the wealth side of lending and need to be investors themselves.

About David McMillan (taken from performanceproperty.com.au)

During his 16 years in the property industry David has worked as a property valuer and property adviser to private clients, financial planners, accountants, finance brokers, major banks and governments. He has been involved in more than $500M worth of transactions across Victoria, New South Wales, South Australia & Queensland.

Since 2009, David has been specifically focused on helping medical professionals, expats, business owners and busy executives build effective property portfolios.

David is a fully licensed real estate agent in Victoria, South Australia and Queensland (CEA), Certified Practicing property Valuer (CPV), Qualified Property Investment Advisor (QPIA) and most importantly is an active property investor. David joined the Australian Property Institute in 2001 and is now an Associate (AAPI) and in 2009 became a member of the Real Estate Institute. David currently sits on the board of Property Investment Professionals of Australia (PIPA) to promote ethics in the property investment industry.

About Mark Davis (taken from alic.com.au)

Mark's successful career at ANZ resulted in him becoming the number one national mortgage lender for seven years in a row. Mark's expertise is in lending structures and strategies for wealth creation and the formula utilized within ALIC. Through developing close working relationships with clients, Mark is able to guide and advise the most suitable loan options available as he is constantly aware of market forces surrounding the industry.

Since the inception of The Australian Lending & Investment Centre in 2009, Mark has been at the forefront of industry, being recognised with many Broker of the Year awards.

As the industries leading adviser Mark is frequently called upon to provide up to date and informed opinions for the Australian mainstream media, as well as industry events and articles.

With over 30 years of experience Mark's knowledge and network of key professionals is second to none.

David gets together with Mark Davis from The Australian Lending & Investment Centre (ALIC) to chat around the question… 

Why go to a broker instead of a bank to manage your property investments?