The Holy Grail of Property Investing

This week my guest is Emily Wallace who has a Bachelors Degree in Education specialising in Primary Teaching. Emily saw a real gap in the Property Market for First Home Buyers in particular and embarked on a career as a Buyer’s Advocate.

Emily is also the Co-host of Ticker Property and the founder of EW Education.

We discuss what separates a great Buyer’s Advocate from an average Buyer’s Advocate.

I ask Emily about who is the typical client that would come to her seeking her expertise and guidance in buying the right property and Emily shares some commonalities around what her buyer profile looks like.

Emily and I discuss what has changed in attitudes amongst buyers Pre-Covid and since Melbourne has come out of Lockdown.

It is always nice to hear about the wins and Emily has had plenty of those for her clients and she gladly shares some of these.

We also look at why a buyer should seek help in the buying process rather than doing it themselves.

Emily tells our listeners very openly about instances where buyers did not choose to work with her and what that meant to the outcome for some of these buyers.

Emily talks about the extensive amount of research she and her team does and part of that is in the preparation and work in Off-Market Purchases. I ask Emily how she goes about sourcing these opportunities and it’s not what you might think. She’s definitely one lady that refreshinlgy thinks outside the box.

We chat about the significant level of optimism in the Markets and Emily shares some current stories that are quite incredible in light of Melbourne’s opening up since Lockdown 2.

Emily has a real knack at buying Pre-Market and we learn from her how she is using this as a for buyers that are ready to move forward.

I get Emily’s expert thoughts on what she sees ahead in the Property Market for 2021 and how that will impact buyers and their expectations.

Emily tells us about her show Ticker Property and finally we ask Emily about what’s in store for her over the next 5 years!

Oh and one last thing Emily gives some top tips on some Do’s and Don’ts when looking at buying your first or next property.

This week my guest is a man who has spent some 43 years serving others in the Mortgage & Finance Industry. From humble beginnings way back in 1984 with the opening of his Mortgage Brokerage in Ballarat Victoria operating as Western District Finance Consultants to the heady lights of television appearing on the Apprentice in 2011 with the likes of Shane Crawford , Jesinta Campbell & Julia Morris to winning numerous awards with Aussie Home Loans and operating Yellow Brick Road’s Number one Office Nationally to being the State Manager for Mortgage Aggregator Vow, National Sales Manager at Aggregator MLB (My Local Broker) and now currently in the role of National Distribution Manager for Tradies Finance. Rosco- Ross Laurenson has pretty much done it all when it comes to the finance industry.

Ross is a qualified Life Coach, a registered Real Estate Agent and the founder of the ROSCO ACADEMY for business coaching ( specialising in Mortgage Brokerage and Real Estate with the philosophy of Train them Don’t Blame them.

I ask Rosco straight off the bat “What is a Mortgage Manager and how does this differ from a Mainstream Bank?

We talk about how about Mortgage Manager would go about raising funds for lending if they don’t hold deposits like a mainstream bank.

The obvious question is Why would a person go to a Mortgage Manager rather than a bank and Rosco gives us insights in to the huge opportunities that working with a Mortgage Manager presents consumers.

Rosco gives us an insight in to the roll out of the new legislation for the Mortgage Industry being the B.I.D. (Best Interest Duty) which comes into effect on January 1 2021.

Most consumers would not have heard of this or what it means for them when it comes to the borrowing landscape.

As you can imagine there’s already plenty of differing opinions on how to interpret the legislation amongst the leading industry bodies and Rosco shares that it will likely take the legislation being tested before the courts to get a real sense of how the law will deal with B.I.D.

We discuss some of the big differences in how Banks assess a loan compared to a Mortgage Manager and it would be fair to say the differences can have a huge impact on a borrowers capacity to borrow and that is worth understanding particularly when it comes to building an investment property portfolio and wanting to be able to borrow for the acquisition of multiple properties.

As 2021 is fast approaching we chat about the importance of getting your funding team around you so you can be ready to take action and how doing this can give you a real advantage when it comes time to be act on a prudent purchase.

Rosco leaves us with some gems around what his team can offer at Tradies Finance and I definitely get the feeling it’s all about good old fashioned service.

This week Terry and I look at 2020 and discuss in light of the pandemic what’s going to be different next year from this year?

It would be fair to say that most people have not thought about next year and their plan but it’s only 9 weeks to 2021!

We explore the mass of uncertainty that most people are faced with but on reflection we salute the Australian Property Market for what it has shown us during the pandemic and that is that it’s been a great advertisement for real estate.

Terry is bullish about next year and we look at what is behind this optimism and the signals that support his thinking.

We discuss the massive Infrastructure lead recovery with the Federal and State Governments showing their willingness to go into debt to fund infrastructure expenditure in this exceptionally low interest rate environment.

We look at the performance of the Capital Cities and Regionals in 2020 and look ahead to where investors should look for growth and stability.

Terry and I emphasise that now is the time to get your house in order as if you are doing a “pre-season” and get yourself in good shape to be “financially fit” for the new year by getting in place your key people; your DREAM Team.

You need to build your team before you build your portfolio and that includes getting your finance sorted out before you start so you are ready to jump and move quickly to secure a good property without being reckless.

As always, we love to give our audience anecdotal evidence of what’s happening around the markets and we ever mention dare I say it… the word BOOM in some regional centres!

Terry goes back over an old chestnut and that is how your 2021 plan should be different if you want to stand out from the herd and that is by engaging the right professionals to provide you with research, he talks of the importance of treating property investing like running a second business.

Terry and I unpack why a Buyer’s Advocate is essential particularly if you want to know where to buy and that includes what streets to buy in and the one’s to avoid and how to leverage the value of a good Buyer’s Advocate’s relationships with the local agents by accessing those great property deals that never even come on to the market and how many of the best property transactions are happening behind closed doors.

2021 proves to be a big one for those who get their plan in and DREAM Team in order now.

Oh and it wouldn’t be right would it if we didn’t touch on this weekend’s upcoming AFL & NRL Grand Finals!!

My guest this week is a communication and leadership expert whose obsession is with seeing people reach their full potential. She passionately works with leaders, teams and organisations to go to the next level by mastering cut-through communication, an accelerated mindset, motivation, leadership of self and others and the realisation of the limitless possibility we all have to succeed.

She is the Author of Limitless Leadership - A Guide to Leading from the Inside Out.

Renee shares her insights into the importance around Self Accountability and gives us what she sees as the keys to living a life where you hold yourself accountable.

In Renee’s Limitless Leadership Academy we unpack her purpose built program that helps you to take working remotely to the next level - "Supercharge Working Remotely is her online course and she takes us backstage as we learn all about how this is shifting people’s mindsets and beliefs of how working from home can be reframed.

I ask Renee how Self Accountability can play a significant role in helping people get to where they want to when it comes to financial control. It’s all about starting with the end in mind and Renee shares insights into one of my favourites concepts that of a DREAM Team.

We chat about the impact life events can have on people particularly those who may have been through a Divorce (like me) or a Medical Scare where they have say by their mid-40's early 50's their financial landscape has been rocked. Renee shares advice with our listeners on how individuals can take back control and use it as a springboard to greater things!

I ask Renee about the role motivation plays for people and Renee zero’s in on the importance of having a strong Purpose and a Commitment to your goal can help you get back that “Pep in Your Step!”

One of the things you focus on in your "Supercharge Working Remotely" is the importance of AMPLIFY, ADAPT & ADJUST. So in terms of Property how does this apply to the "Holy Grail of Property Investing? "

Renee is very big on Self Compassion and with World Mental Health Day having just past on October 10 I ask her about the role of Self-Compassion and Negative Self-talk plus gives our listeners some great tips on how to be Kind To Ourselves.

Our discussion takes us in to the area of Self-Sabotage and Renee opens up about the need to “Flip Your Beliefs” and how people can help themselves shift from this "DESTRUCTIVE" way of thinking to operating with a mindset that serves them.

Another of Renee’s beliefs is what she terms - 3-Dimensional Decision Making, namely the role of The Past, The Present & The Future.

One of the things I love about Renee is her selflessness and this is evident in her new book set for release in March 2021 – Renee shares about "Having a Gift Mindset" and some situations in which this can be applied to Property Investing.

Finally we explore another of Renee’s quotes " Comfort and Fear are the enemies of Progress!" and Renee gives us some context around this.

A very timely episode considering the significant changes we are all experiencing in 2020.

This week I am bringing back one of the superstars of the Real Estate Industry a man who really has been a shining light for the Real Estate Industry across Australia but more specifically and crucially he has been a real lighthouse even for some a life preserver here in Melbourne for Agents who have unable to service the needs of our community  and I am referring to none other than the man who at 9pm each night goes live across all the main Social Media Platforms hosting the "Ask Andy Anything" show my guest this week is who I’ve dubbed Sir Andy Reid.

Andy talks about Tax Rebates more specifically the PITP – the Personal Income Tax Plan which was originally announced as part of the 2019-20 Budget, and will bring forward the announced tax cuts for lower income brackets.

Andy talks about the two key changes that have been proposed.

We discuss the announcements made in the delayed COVID-19 Budget by Treasurer Josh Frydenberg who presents the Government's strategy to Australia’s biggest economic challenge since the Great Depression.

Andy talks about the Federal Governments massive spending spree with the Jobkeeper and Jobmaker Programs and how much this is expected to cost.

I ask Andy about when the worst of the economic impact of the COVID-pandemic is to have struck?

We look at the Unemployment numbers and Migrations and what we’ve learned so far is the Government’s strategy includes two phases:

Andy and I discuss the most active cohort in the market the First Home Buyers who've been showered with huge Pressies of Federal and State Grants and Exemptions including the First Home Loan Deposit Scheme. We explore whether this is likely to continue.

We take a look at what’s happening at the coalface and talk about the "real impact" with the Real Estate market grinding to a halt – We explore divorce and the forced sale of property assets and the huge backlog of cases waiting for a hearing before Consumer Affairs in the struggle between landlords and tenants and we share a few “home truths” about landlords.

We look at what the future holds for the property market beyond March 2021 with the cessation of Jobkeeper.

Andy gives us some insights into his new gig as a Host of Property TV and what viewers should expect both the public and the Real Estate Community.

This episode finishes with a look at the new App RealCare designed specifically for the Real Estate Industry an initiative to promote wellness and wellbeing for those in Industry and finally Andy and I talk about some fantastic interviews with our industry brothers on 100 Words Mate to Mate and I even get to have a plug about my Global Launch of Saving Brothers.

Terry and I look back on the predictions made by a number of “so-called” Property Experts since the beginning of Pandemic.

We look at a survey in April 2020 that found that most Australians believed property prices would fall 20% in the next six months. 

Terry and I take an in depth look at these predictions from the “Experts” The Economists and see how accurate their predictions have proven to be…

We look at the phenomenon and obsession of Mainstream Media with highlighting with amazing regularity anything that is the wildest and most depressing of possible scenarios when it comes to the Australian Economy and possible recovery.

Terry shares the facts on what’s really go on with Sydney and Melbourne when compared to the rest of the nation in that most locations across Australia have rising prices and six of the eight capital cities have house prices higher than at the start of 2020.

It’s the usual suspects such as the Commonwealth Bank with its predictions for Australian house prices in April, with a range of scenarios including a decline of over 30% this year. It said at least 10% in the next 6 months and 20% on an annualised basis, with a worst case scenario of more than 30%.

CBA’s new forecasts in September this year - admitting the market had held up better than expected and would rebound strongly.

Westpac fared no better with dire predictions at the start of the pandemic only to review their forecasts from six months to now suggesting a property boom in the near future…

Terry and I take a wack at their flimsy reasoning being record low interest rates and freely available credit. We note that this low interest rate environment is not a new phenomenon.

In April NAB suggested prices might fall as much as 30%. -The bank presented a "base case", or V-shaped scenario, assuming house prices would fall 10 per cent this year along with a sharp increase in unemployment, before property prices recovered slightly with a 2.6 per cent increase in 2021.

Under a "severe downturn" scenario, the bank assumed house prices would plunge 20.9 per cent this year and a further 11.8 per cent in 2021, before a 2.5 per cent increase in 2022.

In April Louis Christopher Managing Director of SQM Research said he couldn’t rule out a 30% fall in property prices particularly if we have a second wave of the virus attacking this would be a very bleak scenario for the Housing Market - You couldn't rule out a 30 per cent decline in property prices if restrictions were extended for six months.

Terry puts the spotlight on a another Economist who continually gets it wrong but alarmingly the media have an obsession with the much-quoted Shane Oliver, Chief Economist of AMP Capital, who predicted a 20% decline in property prices. More recently he has admitted that he was wrong and has released a more moderate forecast.

We look at a possible Utopia and pretend what it could be like if the Mainstream Media promoted and focused on the many positive stories coming out of in particular Regional Australia and other Capital Cities other than Sydney and Melbourne.

Terry and I discuss the impact of this type of Negative Clickbait Journalism on the mental health of our community particularly those in Melbourne right now who are enduring a prolonged and unnecessary extended lockdown.

Terry looks at the “Perfect Storm” that is presenting itself to Australia’s First Home Buyers with record Federal and State Government Grants and the Federal Government’s Guarantee that is helping these first time home owners avoid the cost of Lender’s Mortgage Insurance.

Terry and I dream of a possible Utopia and pretend what it could be like if the Mainstream Media promoted and focused on the many positive stories coming out of in particular Regional Australia and other Capital Cities other than Sydney and Melbourne.

This week my guest is the Director at SJB Quantity Surveyors for the past 10 years a National Firm with Locations in Melbourne, Sydney, Gold Coast, Adelaide and Darwin. He is a Member of the Australian Institute of Quantity Surveyors is Registered with the Tax Practitioners Board. My guest has been a Quantity Surveyor for over 26 years. He’s worked for National Quantity Surveying firms and Tier 1 and Tier 2 Commercial Builders. In that time he has been involved in all types of construction projects ranging in value from $50,000 to $300 million. Welcome Steve Blank.

Depreciation is a term most people are unfamiliar with so with that said I ask Steve what is Depreciation?

When it comes to talking about numbers and the possibility of Tax Deductions most people would usually go to their Accountant but I've got a feeling you're going to tell me only certain professionals are able to prepare a Depreciation Schedule? Who can prepare one and who can't?

We unpack what is Tax Depreciation when it comes to an Investment Property?

We explore the different types of Depreciation namely Diminishing Value Method & the Prime Cost or Straight-Line Method.

Steve shares how these methods are comprised and how you go about breaking down the Plant & Equipment Items.

Steve explains what is meant by Capital Works or Building Allowance, how long a Depreciation Schedule lasts and whether the Value of the property or the purchase price affects Tax Depreciation.

Can you claim the full amount of available depreciation in the first year?

Steve a lot of people would want to know if a Depreciation Schedule

can be backdated?

Governments are always tinkering with Legislation and the area of Depreciation is no exception. Steve takes us through the significant dates and changes.

There are some things that cannot be claimed and Steve shares the most common ones with us.

We look at the impact of transferring a property from one owner to the next and whether a Depreciation Schedule can be transferred.

So what if I renovate my property how will this impact the Depreciation Schedule and what is claimable?

As I buy Regional Properties across Australia for our clients, I ask Steve to share examples when you would recommend doing a Depreciation on an Established dwelling and some when it wouldn't be worthwhile doing one?

We discuss renovating a property in the future and whether a new Depreciation Report would be required and importantly how long it typically takes to prepare a report.

We also look at where you can get big wins when it comes to having a Depreciation Schedule and that’s with New Builds and Steve shares just how much can be claimed against your Taxable Income…It’s quite staggering!

With the world going through so much change socially and economically we discuss whether there is anything on the horizon in terms of Depreciation that investors should be aware of.

This week's guest is born and raised in the U.K. and has a degree in Mechanical Engineering fell in love with the hospitality industry and operated as a Bar and Venue Manager for 8 years looking after up to 250 staff.

He moved to Australia in 2010 and started in Residential Real Estate Sales and by 2012 had discovered a passion for Auctioneering.

He quickly climbed the Sales Ladder at Stockdale & Leggo where he progressed into a Sales Management Role and in 2017 launched his freelance Auctioneering Business servicing all of Melbourne Metro.

In 2018 went full-time with Sold By Group and opened a marketing and training department within the business and is now servicing some 60-70 Real Estate Businesses across Melbourne - Welcome Andy Reid...

Andy I dive in to an exciting topic - The New Real Estate Revolution.. Andy shares what this is all about.

We get some insight in to what really motivated Andy to start Andy Reid Inspiring Action. I feel he’s got a bee in his bonnet!

Andy with the greatest of respect Real Estate Sales Trainers are a dime a dozen what is going to make your business any different?

So with that said we draw breath as I ask Andy "Where do you see how the industry can evolve for a better customer experience?"

With such upheaval as a result of Covid I ask Andy his opinion on how he feels the industry has adapted to not only open for inspection but the new sales environment?

Our audience wants to know if Andy sees things going back to the way they were prior to Covid and Lockdown?

Andy What do you think have been the lessons from Covid from the consumer's perspective and from the Sales Side of the fence?

I approach the topic of Utopia and ask Andy “Do you see a new world where the relationship between the customer and the real estate industry becomes more collaborative?”

We explore Andy’s nightly Live Show that streams across Facebook, Linkedin and YouTube called "Ask Andy Anything." – Andy shares what it’s about and what’s the current pulse of the Real Estate Industry. We delve in to what it is that Agents are saying and what are they doing to negotiate this tricky time.

So Andy with today's theme in mind "The New Real Estate Revolution" I top out with what Andy Reid's priorities will be over the next 6 months.

Today I'm excited to welcome this week's guest who is a Certified Practising Accountant (CPA) who's successfully run a vibrant Accounting and Advisory firm called AD Partners for over 20 years is the author of BUILD IT and the money will come which was first released in April 2017. He is the master of a proven 5 Step process that helps investors plan for the future based on having a clearly defined STRATEGY, establishing the right STRUCTURES, meeting all STATUTORY obligations, putting in place the most appropriate SYSTEMS and engaging the right SUPPORT Team - which is something I particularly love as I call this building your DREAM Team.

So straight off the bat I ask Tony "What do you think differentiates a Good Accountant say from a Great Accountant when it comes to investing in Property?"

What do you see as the role of a 21st Century Accountant?

I'm a great believer in getting it right from the start... With that in mind we talk about Structures and who or what entity should own the property in the first place...What do you feel are the right steps a seasoned property investor should be taking when it comes to structures of property ownership and the second part to that question is "What are the things that are going to influence the ownership of the property?"

Tony talks about setting up a Self-Managed Super Fund (SMSF) and some examples of where this could be a worthy consideration as an Asset Holding and Tax effective strategy (Disclaimer - General Information not to be considered specific advice *

Tony shares of the things that can go wrong when it comes to owning property?

We unpack one of the Industry buzz words of the last 15-20 years Negative Gearing...Tony shares his views on this.

Depreciation's another interesting so we dive that rabbit hole and pull apart how that works for investors.

One of the considerations that is often overlooked is Land Tax. Tony looks at how this can impact your bottom line and the importance of not over-loading your property portfolio with too many assets in one State.

Tony updates us on the impact of Covid-19 when it comes to advice and planning around cash flow management and financial modelling and we discuss some recent examples he’s had with whether to sell or retain a property.

Terry and I discuss the state of play in the Australian Property Market namely the “Herd Mentality.”

We unpack the dangers of being part of the herd when it comes to real estate that by following the herd is a recipe for financial disaster. The problem with herds is that they’re not driven by logic or reason. Herds are skittish and prone to panic reactions.

There’s plenty of evidence that people who reject the herd have the greatest success with investment. One of the world’s leading investors, Warren Buffett (recently ranked the 7th wealthiest human, with a net worth of $US80 billion), has always preached an anti-herd approach. “Sell when others are buying, and buy when others are selling,” is his simple but highly effective mantra.

He also advocates taking a long-term view of investment. He says he buys good assets with the intention of keeping them. He’s an accumulator, not a trader. He says he doesn’t care if they shut the market down and it doesn’t reopen for five years, because he has no intention of selling the good assets he owns.

We take a look at how this applies to the Australian real estate market in September 2020.

Sadly the news has been overwhelmingly negative as media outlets have sought to milk the pandemic for clickbait headlines. This has been not only unhelpful, but often highly inaccurate.

Recent data on vacancy rates has been overwhelmingly positive for property markets – with most capital cities and also regional centres having very tight rental markets, putting upward pressure on rents and prices. But mainstream media has focused on the small number of negative figures, notably the high vacancies in inner-city areas.

We review what the mainstream media had to say about property prices. Who could forget the dour predictions in March of prices plummeting 20% or 30%.

How inaccurate was this not surprisingly with some areas experiencing price growth with limited supply. I share what is really happening out there in the market at the Coalface.

I share with the audience some examples that with some good research and creativity you can do very well when you adopt a long game approach.

Sadly too many will continue to rely on the mainstream media as their source of research which will see most of them buy at the peak and potentially lose money or pay too much for a property.

Terry and I reveal that the savvy investors are getting in now and buying while there’s a distinct lack of competition particularly in regional markets.

I leave the final word to Terry who says “ All Power to the Independent Thinkers.”