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

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This ep was about FOBBABO, an acronym Cate made up years ago.

She coined this phrase a while back when buyers started having second thoughts after an ideal property came along. This episode is dedicated to the trick buyers often play on themselves… some of the reasons why, things that amplify FOBBABO, why it can be dangerous, and ways to tackle it when it happens to you.

Dave hosts this exciting episode and explores with Mike and Cate some of the other psychological challenges buyers face, from FOMO (Fear of Missing Out), to 'the winner's curse', an segment that Dave, Cate and Pete covered back in episode 94.

Dave asks Cate to share how FOBBABO usually manifests and becomes obvious to a buyer’s agent, and Cate also sheds light on the pro's and cons of FOBBABO, which market cycles it usually strikes in, and why the media can be quite unhelpful for those who are struggling with this fear.

Dave also challenges Cate to delve into some of the painful lessons that FOBBABO can create, and the trio speak about the difference between our most recent property downturn and previous downturns.

Dave shares his insights on the impact of inflationary pressures, rising interest rates and in particular, diminished borrowing capacity for many buyers as a result of the rate hikes. This time, FOBBABO presents even more dire risks for some buyers... tune in to find out more!

The trio talk about some of the ways that buyers can limit the negative impacts FOBBABO can cause and Cate talks listeners through her 'reverse search engine' exersise. This not only helps give perspective for buyers who are feeling the threat of FOBBABO, but also enables them to construct a clear feasibility study that highlights not just the likely types of eligible properties, but their frequency of sale also; an essential element to note for anyone who is concerned about a moving market.

The trio share eight tips to ward off the chances of FOBBABO biting... check out our show notes.

And... our gold nuggets!

Mike Mortlock's gold nugget is all about buyers making sure they have their brief nailed down. The reverse search engine exercise caught Mike's attention and he encourages our listeners to utilise this tool when it comes time to circle in on their purchase plans.

Cate Bakos's gold nugget relates to the importance of taking action. Buyers have to be informed to be prepared to pull the trigger.... but once they have made the decision to buy, they just have to go for it!

Shownotes here: https://www.propertytrio.com.au/2023/05/22/ep-206-mastering-the-art-of-property-decision-making-and-conquering-the-fear-of-buying-before-a-better-option/

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Mike opens his first official Market Update episode and kicks off the conversation with the Federal Government's budget night announcements. Notably, the trio talk about the impact on the property market, in particular the measures that are proposed to ease the cost of living and the government's approach to tackle the rental crisis.

The Trio ponder the complexities of long lead time and expensive building costs when it comes to targeting the new supply side of the equation, and Cate points out the contrasts between this particular budget night and past budget nights.

Dave discusses the Build to Rent sector and the challenges that this initiative poses for the government, and he sheds light on the management trust withholding tax changes and the impact that this proposed easing will have on investment in the sector. Cate's word of caution about this type of investment category with controlled rents is an interesting one for pragmatic investors to consider.

The initiative that the Trio all agree is a good one is the First Home Buyer shared equity scheme. Opening up the offering to those who have previously owned a home more than ten years prior, and allowing siblings and friends to co-purchase is a significant change to what was already a good offering.

"It's much harder these days to buy a property as a single", says Dave, and this opportunity will make a positive difference for a lot of Australians, (including permanent residents) who are keen to get a foot on the property ladder. Cate particularly likes this initiative for several reasons, including the fact that it is less likely to segment the market and result in a dual speed rate of growth for first homebuyer stock vs all other stock.

The side impacts that could increase house prices in specific areas include parental leave changes, (as household incomes grow), and green energy infrastructure upgrades in our existing steel manufacturing locations.

Moving into our April Market Update... As Dave points out, Sydney is the "absolute standout", but other capital cities are also rebounding. Low listings, record new arrivals and a general stabilisation of rate increases are the current tailwinds behind the property market.

Cate speaks about listing volumes and the drivers that influence them. Currently, vendor participation is low, and buyers are pouncing onto 'old stock', which is in turn eroding 'all stock'. Negative media sentiment and data lag are likely drivers of the current low listing rates. "Until vendors have confidence that the market isn't horrible, vendors are going to sit on their hands", says Cate. And she also shares her concerns about a particularly quiet winter; something that will be difficult for buyers, especially in the cooler climate cities.

Dave also comments about something important: listing activity is also low because owner tenure is extended. People are holding their properties for longer.

The trio focus their attention on the Westpac Consumer Sentiment Index and debate some of the drivers and changes that are noteworthy forward indicators for our housing market. New loan commitments are interesting, and according to Mike, "the refinancing goldrush has become a hallmark of 2023". Dave discusses a rebound he's seeing; both owner-occupier financing group and the investor financing groups have grown in size. First home buyers have grown by 15%; possibly amplified by the NSW stamp duty changes.

The annual change in rents for houses continues to challenge several markets, but the change in unit rents is quite shocking for tenants in the affected cities and regions. But why is Tasmania lagging when compared to the other states? Mike asks Cate to explain and her answer may surprise listeners. And what is the story with Canberra? Dave eludes to the challenges associated with the public sector wage freezes, combined with the work from home acceptance.

Cate's curious finding about eastern seaboard capital city top rental performers is intriguing.... we won't spoil the surprise.

Distressed listings are not as 'distressed' as the media would have had us believe. The charts are not showing that the impact of interest rate increases have dismantled home ownership like the headlines suggested they would.

The trio focus their attention on the Westpac Consumer Sentiment Index and debate some of the drivers and changes that are noteworthy forward indicators for our housing market.

New loan commitments are interesting, and according to Mike, "the refinancing goldrush has become a hallmark of 2023". Dave discusses a rebound he's seeing; both owner-occupier financing group and the investor financing groups have grown in size. First home buyers have grown by 15%; possibly amplified by the NSW stamp duty changes.

And... time for our gold nuggets...

Dave Johnston's gold nugget: the separation between unit rental growth and house rental growth is a great one to watch. We saw cyclical highs in the last quarter, and Dave is tracking the relative historical differential between unit and house rents with an educated hunch that we could see units turn a corner.

Cate Bakos's gold nugget: Any prospective vendors who are wondering if/when it will be a good time to sell. Cate implores them to hit the pavement and to check out some auctions in their area. They may be pleasantly surprised.

Mike Mortlock's gold nugget: Mike points out that we've seen the data starting to turn around, and he says it's important to understand data lag. The best way to get a feel for the up-to-the-minute market conditions is to jump into the coal face and experience it in person.

Shownotes here: https://www.propertytrio.com.au/2023/05/15/ep-205-april-market-update-rising-rents-and-budget-night-how-do-we-solve-this-issue/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

Welcome to The Property Trio!

Formerly The Property Planner, Buyer and Professor, we've rebranded!

The trio ponder the RBA rate increase decision. Cate points out that while the rate of inflation is reducing, the inflation figure is still "a million miles" above the target band, (in Mike's words), and our regulators are doing what they can to slow down the rising cost of goods and services; particularly the latter, as Dave points out. Despite the fact that the decision was not what the majority of economists anticipated, we still have some short-term pain to go, in an effort to thwart long-term pain.

Will Mike's prediction be correct? A lumpy return to growth for the property market? Only time will tell. Cate harks back to the market sentiment index and the indicators that we need to look out for.

Heading into episode 204, our second instalment on the various ways that buyers can purchase.

Family loans are a common helping hand in today's market. Family assistance is not restricted to just parents, but often financial assistance comes from parent(s).

Dave digests the difference between a genuine gift vs a loan. A loan will impact the borrower's serviceability when receiving a portion of the funds from a parent in the form of a loan, and lenders usually apply a thirty year loan term to the portion that is funded by a family member. A gift, however doesn't impact borrowing capacity adversely, yet it requires a few important steps to satisfy the lender, as Dave explains. Genuine savings is a major focus for banks, and Dave sheds light on this hurdle for our listeners and has valuable advice that may come as a surprise.

Security guarantee, (also known as Family Pledge) is another common way that parents can assist their children on the property journey and Cate talks through some of the benefits and intricacies of such an arrangement. Dave talks through the pro's and con's of this interesting loan product, and shares a great example about a first home buyer client who has $200,000 saved, and is borrowing 106% of the purchase price with the assistance of a parental security guarantee.

As Cate suggests, for this particular client, their ability to preserve their cash savings for renovations will enable them to target a renovation project; something that most first homebuyers don't have a viable chance at embarking on. How can children relieve their parents of the obligation to provide security? The trio ponder the likely ways that this can occur. And how can parents help children when they have multiple kids?

Shared equity is the next topic that the trio tackle. From state-based to federal initiatives, there are a few options for buyers in today's market who are keen to get a foot on the property ladder.

Mike details the federal scheme and what it means for buyers. "Instead of buying with a friend, you're buying with the government".

Cate asks Dave how owners can get that monkey off their back, touching on the limitations to property improvement activity, buy-back rules and the income thresholds that buyers face in terms of eligibility criteria.

Cate shares her experiences with working alongside clients who have utilised the Victorian state-based shared equity scheme. While it's quite restrictive, (and not for everyone), there is no doubt that it's a special opportunity for those who would have otherwise been precluded from the property market.

Co-ops is the last conversation for this episode and Dave explains how a co-op functions. Best described as voluntary, member-led organisations. Common Equity Housing Limited, (CEHL) is the board controlling the co-op, with 25% of the tenant's income contributing to the cost of the housing co-op. As Mike and Cate point out, the arrangement is contingent on members being aligned. Mike shares the advantages and disadvantages to our co-op arrangement.

Dave chats about the history of co-ops and the benefits on offer for buyers who embark down this path.

And.... our gold nuggets....

Dave's gold nugget: If you're a parent who plans to help a child, or a child who is seeking to get some help from parents.... there is a little bit to think about, so have the conversations early. Initiate conversations well in advance... it will save a lot of time, heartache, pressure and stress. Remember .... genuine savings!

Mike's gold nugget: There are a number of ways for Aussies to get their foot on the property ladder, and taking into account our capital growth rate in our nation, getting in today could have a much greater benefit for you than getting in five or ten years later.

Shownotes here: https://www.propertytrio.com.au/2023/05/08/ownership-structures-part-2/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

Welcome to The Property Trio!

Formerly The Property Planner, Buyer and Professor, we've rebranded!

The trio ponder the current market and share their thoughts on the improving conditions and some of the contradicting economist and media views. Cate highlights some of the reasons why our market has been underpinned, with an uptick of buyer appetite Mike brings perspective to the Silicon Valley bank concerns, citing Peter Costello, our past-treasurer in a recent interview.

Kicking off episode 203.... What are some of the motivations for co-owning property?

Affordability is a significant reason for co-ownership, but as Cate explains, sometimes it's all about bringing someone you love onto the property ladder. Her own real life story about purchasing with her stepson is a great example of a co-ownership success story.

Debt aversion is another common reason, but as the trio uncover later in the show, co-borrowing can have an adverse impact on future borrowing capacity... something to ponder before diving in!

Dave speaks about a sobering reason for co-ownership also. More joint income purchases have made it proportionately harder for singles to enter property ownership though.
"Today, it's much harder for a single to buy a property than it was twenty, thirty, forty years ago", says Dave.

Mike asks Cate to explain the difference between joint ownership and tenants in common; an important concept when it comes to estate planning and tax. And Dave points out that too many people think about 'the now' and not the future. Jumping into a decision without planning and consulting the relevant professionals can cost owners a lot in the long term.

The trio chat about the benefits of pooling resources;

• Diversification
• Reduced cashflow commitment
• The chance to buy a better asset with a stronger budget
• Getting into the property market earlier
• Being enabled to enter the property market when you'd otherwise have been precluded. For example, complementary financial positions such as a cashflow rich, cash-poor individual combining forces with a cashflow poor, cash-rich individual

Some of the issues that are often overlooked though are plentiful too.

• When one person has a sudden need to access their capital. Reasons can range from financial distress, new relationships and a desire to buy a home, etc.
• Lack of agreement about important issues, including the agreement itself
• An inequitable set of responsibilities between each owners and a feeling of dissatisfaction
• Risks to the relationship/friendship

Prepping for the entity decision is critical, and they must be arranged long before signing a contract.

Mike asks Cate some good questions about the risks of buying at auction without a clear understanding of the entity, and Dave also sheds light on the ability of owners to switch between joint ownership and tenants in common after the property has settled.

Dave touches on just some of the less-considered details that co-owners need to delve into before they embark on the journey, including the exit-strategy, a dispute resolution clause, a financial default plan, and the distribution of profits. Are they paying down the loan with the rental proceeds once the property is cash positive, or are they distributing the funds? So much to think about....

"Once you dig under the surface, there are a lot of things to think about."

Mike quizzes Cate and Dave on the pro's and cons of corporate entities and trusts, from company tax rates on profits to the costs associated with the structuring and ongoing professional advice.

Mike opens the conversation up about asset protection and the need for some owners in high-risk roles to consider alternative ownership structures. Joint and several borrowing can unravel a co-ownership arrangement if the borrowers are unaware of the impact of the joint and several arrangement on future borrowings. What happens when a co-buyer owns 25% of a property with a friend, and then decides to purchase their own home a few years later, only to find that their bank servicing is insufficient due to the co-ownership loan? Dave gives an excellent example for buyers to consider when contemplating co-ownership.

Mike asks Cate about some of the things that people get wrong with trusts. "People try to out-sophisticate themselves", says Cate. Too much information can be a dangerous thing, as can cutting corners with budget advisors when setting up structures.

Tune in next week for part 2, where the trio will cover more about alternative entities.

And.... our gold nuggets....

Dave's gold nugget: Often people are looking for a shortcut to make money, but there is no such thing in property. Having a plan and good advice is so important

Cate's gold nugget: "Guard your relationship. Making money is great, but destroying a relationship is an enormous cost and it's the worst".

Shownotes here: https://www.propertytrio.com.au/2023/05/01/ownership-structures-part-1/

Formerly The Property Planner, Buyer and Professor.

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

For this exciting episode, some 200 eps following the original podcaster intro's, Dave and Cate introduce Mike!

They chat all things quantity surveying, but drill into the Novocastrian man behind the microphone... from his dangerous hobbies, to what it was that led him to his career as a 'construction economist'.

Mike's candid demeanour brings something special to the trio, and this particular recording sheds light on Mike's zest for trends, data and the identification of property market drivers. Cate delves into the various facets of quantity surveying that requires Mike's skillsets. This ranges from depreciation schedules, replacement cost estimates for insurance purposes, strata management schedules, among other activity.

We are thrilled to welcome Mike to the show and we look forward to scheduling some great episodes derived from his MCG Quantity Surveying 1,000 Assets Reports. Mike shares some intriguing snippets of data about lost depreciation benefits and the figure is staggering... .tune in to hear the details!

Gold Nuggets:

The Quantity Surveyor, Mike Mortlock: Journalistic bias is something that buyers should keep in perspective. Cognitive bias creeps into our thinking often, and it's important we recognise this when making property decisions.

The Property Planner, David Johnston: Dave suggests that investors who haven't actioned their depreciation schedules need to get in touch with a good Quantity Surveyor to claim their deductions. (As Mike says, "Thanks Dave... the cheque's in the mail!")

Shownotes: https://www.propertytrio.com.au/2023/04/24/ep-202-meet-the-quantity-surveyor-mike-mortlock/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

Welcome to The Property Trio!

Formerly The Property Planner, Buyer and Professor, we've rebranded!

We are proud to be bringing your regular episodes to your podcast feed with our newest musketeer, Mike Mortlock. Cate and Dave decided to throw Mike in at the deep end with his first hosting gig, and he didn't disappoint. The Trio reflected on the March data and in particular, the question on everyone's minds;

Has the market turned, or is this a dead cat bounce?

Dave and Cate are both confident that our market strength is sustainable, however Mike chimes in with some context around the quantum of the rebound for the month of March. Cate makes a point about the impact of buyer confidence, (and acceptance) of the rate increases, particularly now that it's evident the rate increases are easing, inflationary pressures are reducing and skill migrant arrival numbers are climbing. "It's refinancing gold rush times at the moment", says Mike. "I think double digit growth isn't out of the question."

The Trio crack straight into the data as follows.

1. Monthly Data - Sydney rebounded strongly with 1.4% growth in one month, and Dave brings market segments and price points to light when he shares that the upper quartiles are the highest performing price segments for the eastern capitals. Dave highlights the separation between Perth, Hobart, Darwin and the other capitals. The Trio canvas the accuracy of some of the most skilled economists and the reliability of their projections and Mike touches on the difficulties of predicting price.
2. Peak to troughs - The sea change/tree change movement is obvious in this following table, and the trio but the March uptick signals a recovery in the regions also. Despite the fact that many of our cities are plagued by low stock supply, we have this to thank for placing a floor under price falls. Cate touches on the elasticity she's seeing, however when it comes to Lockdown Escapees returning to the city.
3. Sales volumes are down - Dave shares an interesting thought; the number of sales as a function of total dwellings are diminishing. From stamp duty avoidance to low confidence, and also taking into account the insufficient options for prospective vendors to choose from, our market forces are not conducive to vendor listing activity. Dave predicts a listing rebound in the Spring months of 2023.
4. Dave confirms the high demand (and activity) for refinancing is evident in the data and at his coalface - it seems refinancing activity is a hallmark of 2023.
5. Rents... Mike shares a scary news item - he read about a rental provider advertising a tent inside his living room for rent. Looking at the rate of change for rents, almost every capital city except for Canberra is exhibiting frightening rates of rental growth. Brisbane is an interesting case to ponder, particularly following the repealed land tax changes and the impact it had on investors. Mike quotes one of our Property Professor's pieces of wisdom dating back to August last year. "Rents have grown at only half the rate of inflation for the past decade. With inflation at over 25% for the decade, and yet the property rental growth average sitting at 11%, the trio ponder the concept that rents are just playing catch up.
6. Sentiment - Mike highlights bond yields and the correlation with sentiment and ponders whether the consumer sentiment figures are actually indicating a rebound. Cate suggests that a dose of YOLO (you only live once) combined with added lockdown savings have delayed the intended impact of the RBA's rate increases. Note we have since sourced an updated April Westpac Consumer Sentiment chart to overlay with the previous March chart discussed on the show.
7. And... our gold nuggets! The Property Planner: Dave feels that late last year was indeed the best time to buy and he notes the markets are broadly in recovery mode now, and Mike agrees with him. The Property Buyer: For any upgraders who are feeling disconcerted by the lack of housing options to pursue, they should consider a long, (or flexible) settlement period to give themselves time to shop.

Shownotes: https://podcasts.apple.com/au/podcast/the-property-trio/id1476039942

Dave and Cate share with the listeners the appointment of Mike Mortlock to 'Third Musketeer' status on The Property Trio.

Mike's job interview and Cate and Dave's discussion prior about the key attributes they're searching for. This little mini-ep taster provides a bit of humour and some insight into Mike's wit and charm.

We welcome our clever Quantity Surveyor to the show! Congratulations, Mike!

Formerly known as The Property Planner, Buyer and Professor, we've rebranded to The Property Trio. Our listeners who have subscribed to our show don't need to do a thing. Each week's episode will keep landing in your feed.

Got a question for the trio? http://bit.ly/3mlk8Rw

Show notes: https://www.propertytrio.com.au/episodes/

As Dave and Pete said at the start, "We made the double century". This special episode is not only our 200th, but our last as "The Property Planner, Buyer and Professor. The trio enjoyed reminiscing about the early days when the concept of the show became a reality.

Speaking openly about their hopes, fears and feelings when the pilot launch aired back at the start of 2019, this retrospective is a special one. From mapping out the first episodes to investing in the studio, Dave chats about the inspiration that led to the podcast that it's become today.

Pete recalls the turmoil that COVID caused for so many, and the ways that they worked around lockdowns with technology, enabling every episode to land in their listener's feed during tough times.

Dave explains how the show has taken shape over the years with listener questions, case studies and market updates peppered in between unique episodes, taking inspiration from listener feedback over the years.

This episode has some past sound bites from early episodes including some early calls and insights in relation to the inflation challenges the economy is grappling with today, and Cate's potty mouth during Melbourne's earthquake gets some laughs from the guys.

Cate shares some special listener reviews and our newest muscateer sends a special shout-out to Pete. While Cate and Dave are particularly sad to be saying cheerio to Pete, he's never going to be too far away and this episode was a joy for them all to produce.

Wishing our Property Professor many, happy years of semi-retirement, (because we all know he will truly never quite be able to fully retire from his love of property!).

Pete.. thank you for the memories and the fun on the show. Your clever one-liners, valuable stories and incredible ability to impart your property knowledge have been appreciated by us all.

"You don't need to be a genius to do well in property. You just need to know a bit more than the last person".

To sign off the 200th episode, we replay Pete singing us a special song.

...and in the coming days... Look out for our mini-episode launch of "The Property Trio" where Dave and Cate shad light on the interview process and the quest for the new third muscateer. Listeners who have downloaded The Property Planner, Buyer and Professor podcast in their feed don't need to do a thing. Your feed will automatically update to reflect the new name, The Property Trio.
Our new show notes will move to the new website following our 200th episode.

Formerly known as The Property Planner, Buyer and Professor, we've rebranded to The Property Trio. Our listeners who have subscribed to our show don't need to do a thing. Each week's episode will keep landing in your feed.

Got a question for the trio? https://zfrmz.com/0S6ddQ7y4WzaE3qX3xZt

Show notes: https://www.propertytrio.com.au/episodes/

This is arguably one of the trio's favourite set of episodes. Taking a trip down memory lane was not only a thrilling chat for Pete, but a wonderful way to share some very important learnings with our listeners.

Following on from last week's episode 1 where Pete got started on his property journey in 1984, this week's episode introduces listeners to Pete's learnings as he embarked on value-adding to his investments.

Episode 1 - Getting Started. It starts back in 1984 when Pete and his wife purchased their first home in High Street, Ardrossan (SA) and spans the the purchase of their first upgrader home, as well as some early value adds and long-term investments that Pete embarked on.

Episode 2 - Property Speculation. Pete branched into purchasing value add properties and wised up to other ways that investors can value add, other than gaining a DA.

Episode 3 - Property Development and Construction. Pete started building and retaining properties in this particular investment phase. In Episode Two, Dave delves into Pete's 'mid-journey' property acquisitions and upgrades.

In the last of these three special episodes, Cate hosts this episode and looks into the various ways that Pete's skillset and experience have enabled him to achieve success and to have choice as he approaches semi-retirement. Episode Three hinges on Pete's growing expertise in relation to subdivision and building.

"Two equilateral triangles make a square"... Listen in to find out how Pete optimised two sites for development.

Pete also touches on his experience post-GFC with his NRAS scheme properties, and the implication of the benefits that have spanned ten years of his investing journey.

Cate reflected with Pete about his growing national brand and his achievements over the years.

Pete appeared in almost every API magazine, contributed to journalist articles, authored two books; firstly in 2008 and then in 2013, he's continued his studies, maintained his passion in property as an active investor, and in 2013 Pete had what he describes as a 'landmark year'. His Masters of Urban Regional Planning study commenced, he was teaching full time, he managed authoring his book and he was training for a marathon. No small feat indeed.

"Knowledge is power in many different fields, and it's no different when it's in property."

Pete emphasises the need for investors to take action, because time is only a wonderful thing once you're investing. He considers some of the students he's taught and the people who have asked him for help over the years, and he touches on the sad reality that many didn't take action to actualise their goals.

Pete's saga about his daughter bidding for him while he was holidaying in Melbourne. While sitting outside a fashion shop waiting for his wife, he trawled the internet on his phone. Recognising a poor listing on the internet that had previously been incorrectly uploaded, Pete set himself the challenge and geared up for an auction (with his daughter's help) in a tiny space of time. It's a wonderful story! Tune in to hear why this particular property caught Pete's eye.

Another great project that Pete shares with our listeners relates to a quadrilateral shaped block that one of his students identified, and in fact it's one of his favourite developments. Pete built the townhouses and holds them to this day, retaining them as a key piece of his retirement plan.

"You don't need to be a genius to do well in property. You just need to know a bit more than the last person".

The trio ponder the properties they've sold, the losses they've averted and the reasons why they sold at the time. Pete's sensible words of wisdom shine through as he reminds listeners that sometimes we make decisions that were the right decisions to make *at the time*.

To sign off the episode, Pete happily sits in the hot seat and answers Cate and Dave's questions. From his best performer, to his tips for success, this episode can't be missed.

And... our gold nuggets!

Pete Koulizos, the Property Professor's Gold Nugget: "Surround yourself with like-minded people to help you on your property journey."

David Johnston, the Property Planner's Gold Nugget: Dave asked Pete a fantastic, burning question that he wanted to bring to light for the listeners; was Pete's property journey the right journey for *him*?

Cate Bakos, the Property Buyer's Gold Nugget: Pete's success can be attributed to his passion, continuous learning and his willingness to take action, but a significant ingredient that Pete had on his side was all about time. He got started early.

Formerly known as The Property Planner, Buyer and Professor, we've rebranded to The Property Trio. Our listeners who have subscribed to our show don't need to do a thing. Each week's episode will keep landing in your feed.

Got a question for the trio? https://zfmz.com/uLtjhyBskV96PYeJfal

Show notes: https://propertyplanning.com.au/the-property-professors-memoirs-part-2-ep-198/

This is arguably one of the trio's favourite set of episodes. Taking a trip down memory lane was not only a thrilling chat for Pete, but a wonderful way to share some very important learnings with our listeners.

Following on from last week's episode 1 where Pete got started on his property journey in 1984, this week's episode introduces listeners to Pete's learnings as he embarked on value-adding to his investments.

Episode 1 - Getting Started. It starts back in 1984 when Pete and his wife purchased their first home in High Street, Ardrossan (SA) and spans the the purchase of their first upgrader home, as well as some early value adds and long-term investments that Pete embarked on.

Episode 2 - Property Speculation. Pete branched into purchasing value add properties and wised up to other ways that investors can value add, other than gaining a DA.

Episode 3 - Property Development and Construction. Pete started building and retaining properties in this particular investment phase. In Episode Two, Dave delves into Pete's 'mid-journey' property acquisitions and upgrades.

One of Pete's interesting achievements involved subdivision activity without building activity. In 2001, and by the time his young family were old enough to travel abroad, Pete proudly took his wife and two eldest to Greece to celebrate some of their property investing achievements. Interestingly, Pete's motivation to avoid building stemmed from a sloping block representing too many challenges for him to tackle. But block after block, Pete perfected adding value through planning approvals, although he notes that it was easier twenty years ago than it is now.

Why did Pete decide to sell his holiday house though? He offers a great explanation... Pete's children's sporting commitments, friends, and weekend plans got in the way of he and his family being able to enjoy their holiday house. The trio have discussed holiday houses at length over past episodes, but this real-life example from our very own Property Professor sheds light on the viability of the holiday house ideal for this family.

Pete and Dave discussed debt, home renovations, personal priorities and the need to put family needs before investment desires at times. Pete's authentic personality shines through in this episode. "I'm a big believer in that your home is your castle." ....."there's no point in having a fantastic place that somebody else is living in and renting, and then you're living in a not-so-nice place."

From value-adds via clever planning insights, Pete's winning formula as his property knowledge grew became a feather in his cap and a very effective way to grow his wealth. His salient advise is peppered throughout this exciting episode, and yet another piece of advice from Pete rings true.

"Most approvals do not last forever".

Pete reminds us about recessions, the GST introduction, the GFC, first home buyer grants and all of the eternal drivers that influenced the vibrant market conditions of the late 1990's and early 2000's. It's a gripping episode, and one the trio enjoyed.

And... our Gold Nuggets!

Pete Koulizos, the 'Property Professor's Gold Nugget: "Property booms are wonderful things." Pete's tip sits outside of timing markets, but he reminds listeners that owning property during a boom period is powerful for any investor's portfolio.

Cate Bakos, the 'Property Buyer's Gold Nugget: Cate reminds investors not to take town planning advice from an agent. Independent advice is paramount. "Property purchases are BUYER BEWARE."