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

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Beware of changing borrowing capacity when on the property hunt
With monthly cash rate increases, borrowing capacity has been slowly dwindling as lenders update their affordability calculators. However, the ‘Household Expenditure Measure’, a measurement for scrutinising living expenses, is also increasing to reflect the higher cost of living due to inflation. For those who are hoping to purchase at the limit of their borrowing capacity, it is imperative that you are checking in with your strategic mortgage broker to confirm affordability before you sign any contracts. 2. Shared equity scheme for Victorian’s announced
The Labor party in Victoria have announced a shared equity scheme to help buyers get into the market. Interestingly, it is not limited to first time buyers. The scheme allows for purchases in metro Melbourne and Geelong up to $950,000 and up to $600,000 in regional Victoria, with the government assisting in purchasing up to 25% of the property. But take note, they will also expect 25% of the gain when you sell! We recommend to those who are interested to understand all of the requirements and fine print. 3. Auction clearances indicate further green shoots
The latest auction clearance rates show some positive signs, which for the third week in a row have been holding steady above 60%. With volumes continuing to rise and the recent rate increase representingonly 25 bps, the market is showing resilience with buyers trickling back in. Our best advice from our own journeys 1. Reflecting on our own purchasing journeys, what is our most solid-gold nugget of wisdom that we’ve gained and feel compelled to share with others?
The trio share the most important lesson they’ve learnt from buying and investing in property. Although Cate, Dave and Pete have followed vastly different paths on their property journey, the advice is very similar – get a foot in the property door as early as you can and hold on to property as long as you can. The trio discuss the circumstances and key events that led them towards this realisation. 2. What surprised the trio about the simplicity of their retrospective gold nugget?
Get in early and hold as long as you can. Simple, right? Whilst it might seem obvious now, there are many circumstances across a lifetime that can challenge this simple proposition and test your nerves. The trio share hot tips on how to keep it simple and stick to your guns. Action and patience is key! 3. What positive role models did the trio learn from in their earlier years?
The trio discuss the investors that they consulted and learnt from at the start of their property journeys. The key is to mix with people who have had success, ask questions, absorb the lessons and work out what is the right strategy for you. 4. Has the evolution of market conditions, lending conditions and social pressures changed how this gold nugget could work in today’s climate?
The trio look in the rear view mirror at the property landscape, how it was back then vs how it is now. Does the change in market, lending and social conditions change the advice? Tune in to find out. Visit the show notes - https://propertyplanning.com.au/the-best-advice-from-our-own-journeys-ep-177/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market updates 1. Correlating listings and property prices – watch this space The Property Professor shares research that he will be conducting on the relationship between listings and property prices. From a supply and demand perspective, whenthere is an increase in listings for sale, there should be a corresponding drop in prices. Are listing numbersa leading indicator? We’ll be watching keenly for the results in January 2. The market picks up – more green shoots emerge The Property Buyer shares her experience on the ground, hitting the pavement and talking to real estate agents. What can be seen is an increase in late spring listings, buyers attending inspections and competition levels in general. With the 0.25% increase in rates, somebuyers have decided that the slow down in the rate of increase may signal a turning point. 3. Clouds on the horizon? US rate movement The Property Planner shares news from the world economy, where inflation in the US continues to grow, with many expecting the US to raise the cash rate by 70 bps. This could potentiallybe bad news as other nations try to stay inline with US rate movements to ensure their currencies don’t weaken against the US dollar. Here’s hoping that Australia can hold the line on 25 bps increases, as Australia’s economy is much more sensitive to rate increases due to the majority of variable rate loans. Amenities 1. How far is "walking distance?" There is no hard and fast rule and it differs from person to person. But when assessing the quality of a location, some boundaries and measurements need to be put in place. The trio discuss the ideal walking time and distance for amenities. 2. Walk score – what is it and how to use it Walk score is a great resource to measure the walkability of an address. You simply type in the property address and get a score out of 100. Points are awarded based on distance to amenities in various categories such as dining, shopping, errands, parks, schools and more. Visit our show notes for the link to this free resource. 3. The amenities that you don’t want to be too close to While being close to some amenities can be really valuable, there are others that you want to be a reasonable distance away from. The trio discuss which amenities to distance from and by how much. 4. What to target as an investor – don’t let personal preference get in the way Valuing amenities can be a very subjective task, as each person has their own personal preferences. For some, a school nearby can be a useful amenity and for others, it can be a nuisance. It’s important to target properties near amenities that at least 8 out of 10 people will be happy with. 5. Which amenities are most important to the trio, personally and from a professional perspective? Cate, Dave and Pete share the amenities that they value the most from a lifestyle and professional perspective. 6. Which amenities are the most important in the cities around Australia? The trio discuss the critical amenities to target in Adelaide, Melbourne and Sydney. Knowing your market is important, as desire for access to an amenity can vary from city to city. It is also imperative to think about the target tenant and what they would desire from a location. Visit the show notes: https://propertyplanning.com.au/amenities-which-are-important/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1 Property market falls decelerate over September
For the first month, the rate of price decline has decelerated, which may be an early sign that the market has passed through the worst of monthly falls. Other early indicators are auction clearance rates picking up and stock levels remaining low. With the RBA putting the breaks on rate increases, the trio discuss what’s likely on the horizon. 2 Peak to trough decline
The current peak to trough decline nationally sits at -4.8% since the peak of April 2022. The trio discuss the peak to trough falls for the capital cities and state regions. Note that regional WA is still below it’s peak 14 years ago, a good reminder to be sceptical of property spruikers and do your research prior to entering any investment decisions. 3 Brisbane land tax has been repealed, but has the damage already been done?
Rents for houses in Brisbane are up 14% over the year and vacancy rates are sitting at a low of 0.7%. On a positive move, the land tax proposal was scrapped, (thanks to our friends at PIPA, PICA and REIQ). However, Brisbane has already sustained some pain, with many investors selling up or in the throws of doing so. 4 Where is the big picture on housing?
The trio discuss government and regulator decisions that have made it harder for landlords and investors. Without the big picture of understanding and deciding what is an appropriate mix of ownership between owner occupiers and investors, and how many investors should be private investors, the approach to housing reform is like throwing darts blindfolded. In positive news, the rate of increase in rents was the lowest it’s been in 10 months, which signals that rental growth is tapering. 5 Listings languish
Spring is typically the time of the year that an increase in stock occurs, but the level of listings has actually dropped and is close to the 5 year average. With interest rates on the rise and prices declining, vendors are holding off thinking that now is not a good time to sell. Hobart and Canberra are bucking the trend, with listings at 71% and 41% higher than this time last year. The trio discuss what this means for value growth and dive into distressed listings. 6 House price expectations turns around
In an interesting turn of events, the house price expectations index has ticked over 100, after dropping below 100 for the first time since September 2020 last month. Victoria and Western Australia are most positive, with readings of 108 and 106 respectively. This should improve further due to the RBA slowing down cash rate rises and is another positive green shoot in the month of September. 7 Investors continue to bow out while first home buyers jump in
Over the month of August, investor lending fell by 4.8%, while owner occupiers remained resilient. First home buyers increased by 7%. Personal loans also increased by 9.5%, which is a concern that people are funding something that they don’t have the money for. David shares what bond markets are saying about where the cash rate is likely to end up too. 8 Unemployment remains steady
The trio discuss the unemployment rate and what is on the horizon with new migrants and the scrapping of mandatory isolation for Covid-19. Visit the show notes: https://propertyplanning.com.au/market-update-sep-2022-green-shoots-emerging-price-falls-decelerate-auction-clearances-up-consumer-sentiment-improves-solving-housing-policy-and-more-ep-175/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. Listener questions This episode is dedicated to answering questions we’ve received from our listeners. If you’ve got a burning question that you’d like to ask the trio, submit your question online here. (AML to add in the link) 2. Can I access the First Home Owner Grant if my partner has already accessed government assistance? My question is, if I'm buying a property on my own but am living with my partner who has bought a property and received the First Home Buyer Assistance Scheme (transfer duty reduction) already, can I also still qualify for a first home owner grant myself? 3. How do partners and de facto relationships impact eligibility requirements? The trio discuss the Victorian SRO criteria for receiving the First Home Owners Grant and how partners must be disclosed on applications, even if they will not be on the property title. But what if your finances are separate, can a government still find out? Tune in for the answer 4. Is there a way you can get around it? The trio discuss a potential pathway to explore in order to receive the grant. However, take note! It’s best to run the scenario by the SRO or a professional for their advice and don’t forget to get it in writing. 5. Is now a good time to subdivide and build our dream home? We owned a unit in Thornbury and purchased an entry point house in Reservoir during the pandemic. The block is 536m2 and we are looking at subdividing the block and building a 3br townhouse at the back to live in as our family home (2 young daughters). I would like to explore whether the next 12 months would be a good time to commence the planning and building process for the back town house or whether the current climate with building materials and inflation mean it’s a bad time to subdivide and build? 6. As with any major decision, ensure that you are thinking about the longer-term In true Property Planner style, David poses some key questions to our listeners about their long-term lifestyle plans and understanding how a subdivision and family home fits into the overall plan. “How long will this home meet your lifestyle needs? “, “Are you sure you will be happy living in the back property for 5 to 10 years if that is required from a financial standpoint? “, and “Will you enjoy living next to your tenants?“ are just to name a few questions to ask. 7. What are your thoughts on Point Cook as a location? I'm curious about the neighbourhood Point Cook in Melbourne. It seems to have plenty of amenity and has been suggested as a future 2nd CBD hub for Melbourne in some articles I came across. I also think it's great that it's one of the most multicultural neighbourhoods in Australia. What are your thoughts on it as a neighbourhood to live in. Are there any areas you find better than others? 8. Investment and lifestyle analysis for Point Cook If our listener loves Point Cook as a home and community, then that’s enough reason to purchase a home there. However, Cate shares some key points for Point Cook which could make it a problematic investment. Visit the show notes - https://propertyplanning.com.au/listener-questions-bought-off-the-plan-my-situation-rates-the-market-is-worse-i-need-the-fhog-but-moved-in-with-my-partner-help-is-it-a-good-time-to-subdivide-suburb-analysis-and-mo/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: 1. The conundrum – can we stop work and live off our portfolio before we reach preservation age? This case study follows the journey of Craig and Jane, podcast listeners in their mid-forties who submitted their scenario to the team to unpeel via the Property Planning platform. They have already made some fantastic decisions on their investment journey, such as almost fully paying off their home, and purchasing three investment properties. They were wondering whether they would be able to scale back work or stop completely in 8 years time, which is 7 years before reaching preservation age and live off their passive rental income before they can access their superannuation. Or would they need to sell a property to live comfortably? 2. Their portfolio and goals The property trio discuss Craig and Jane’s goals and their investment portfolio that they’ve worked hard to build - consisting of 4 properties, super and shares. Ideally they would like to be earning $100,000 passive income from their investment properties, to have enough room in the budget for annual family holidays with their two (currently teenage) kids. 3. Modelling the scenarios Four scenarios were modelled for Craig and Jane which is how many each Property Planning platform allows per user, to illustrate their varying options and provide contrasting pathways forward. The trio sink their teeth into the financial outcomes, how scaling back at different ages, working less hours, selling or holding and other factors impact the ultimate financial outcomes in to their retirement years. 4. The power of mortgage strategy The trio highlight the importance of mortgage strategy, as demonstrated in the modelling. A simple change shaves 7 years off of reaching passive income of $100,000 from property. Tune in to find out how. 5. Should I work longer, scale back sooner but work more days, or just stop all together and everything in between? The trio discuss how various pathways for the couples timeframe and amount of working hours can make a significant difference to your bottom line, retirement age, or flexibility age for when you start to scale back your working hours. Learn how these tweaks inside of the Property Planning software can help inform and educate your decisions rather than flying blindly! The surprise twist to make a significant positive change to this exciting, real life case study might surprise our listeners. Visit the show notes - https://propertyplanning.com.au/property-planning-case-study-6-listener-scenario-on-the-property-planning-platform-can-we-retire-in-8-years-live-off-our-portfolio-until-we-hit-preservation-age-ep-173/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. How the different sectors of the market react to price movements Pete shares with you how the most expensive, middle and lowest sectors of the market in both capitals and regional centres react to market movements. Check out our show notes for an interesting graph that shows it all. 2. The lure of off-markets Cate shares a conversation that she had with an agent who is very experienced about her take on off-market properties. While 95% of them are disappointing, there is the odd gem to be found. Tune in to find out how you can capitalise on these opportunities. n. 3. The Property Planner updates his predictions for the next RBA rate movement Due to further inflationary developments in the US, money markets have changed their predictions for the next rate increase to be 50 basis points, rather than 25. The top 7 things that buyers get wrong – Part 2 #3. Mixing emotion with pragmatism when it comes to investing The trio discuss some of the biggest mistakes that can lead you astray when you listen to your heart instead of your head when investing. What are the causes of emotional decision making and how can you detach yourself to make pragmatic decisions? Tune in to find out. #4. Low ball offers and a quest for a bargain (instead of a quality property) One of the critical mistakes is chasing the property bargain unicorn. The reality is that if a property is heavily discounted, there are some issues that the purchaser has to deal with. #5. Being impatient with time The trio discuss why property is a get rich slow scheme and the errors that buyers fall into when they start to feel impatience creeping in. #6. Counting cents instead of dollars When does scrimping and saving lead to mistakes? The trio discuss the items that you should dig into your wallet to address. #7. DIY’ing the things that you shouldn’t Renovations are tricky to get right and some work even requires permits and certificates. Before you role up your sleeves and get out the paint brush, take a listen to the things that potentially you should be getting a professional to do. Visit the show notes - https://propertyplanning.com.au/the-top-7-things-property-buyers-get-wrong-part-2-ep-172/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Rate of decline speeds up in most capitals Over the month of August, the rate of decline has increased, while in a surprise move, Melbourne’s decline has slowed. Shockingly, Brisbane has jumped from –0.8% in July to –1.8% in August. No doubt due to proposed changes to land tax, flooding and the previous heat in the market. The trio discuss the trough to peak for the capitals and what’s likely to happen next. 2. Rental market - Brisbane land tax is likely to make the rental situation worse The trio canvas the proposed changes to land tax in Queensland which will likely cause more than a few investors to abandon the Queensland property market and sell up to first home owners, hence intensifying the rental shortage. The greatest risk is that other states will jump onboard and aggregate land tax. 3. The outlook for vacancy rates Supply remains limited for rentals, with the tap of overseas migration just starting to be turned on. With new dwelling constructions starting to fall, the outlook is fairly grim, particularly given the Australian Government has increased the target figure for new arrivals. 4. Listings to increase over spring Supply of stock on the market is set to increase, with covid in the rear-view mirror and spring time on our doorstep. Old (180 day+) listing numbers have started to climb, showing that buyer FOMO and desperation have calmed. Total listings are tracking above the 5-year average, a sign that vendors want to sell before the market drops further. The trio discuss how listings and monthly growth our closely interrelated. 5. Consumer sentiment The house price expectations index has dropped for the first time below 100 as consumer sentiment overall takes a hit. Victoria remains the most pessimistic, with a 17.7% drop over August from 99 to 81.6. The trio discuss what this could mean for inflation. 6. Finance continues to fall over July Lending activity continues to slow and mostly investors and business construction has been impacted. The bond yield spiked after the US Federal Reserve Chairman spoke and indicated that the US will do whatever it takes to curb inflation. However, expectations have settled again at 3.1% for the cash rate and we are on our way to hit a 3% cash rate towards the end of the year. 7. Victoria leads the unemployment decline but wages are not taking flight Unemployment drops again to 3.40%, while Victoria leads the pack with the lowest unemployment on record at 3.10%. With the low level of unemployment, it is interesting that wages are not skyrocketing. The trio discuss the delicate tight rope walk of increasing wages, as wage growth must stay under control to tame inflation. Wages should increase, but not at the same rate. Visit the show notes - https://propertyplanning.com.au/market-update-aug-22-why-spring-may-provide-the-best-buying-window-of-the-cycle-why-brisbanes-decline-increased-dramatically-melbournes-slowed-despite-leading-negative-s/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. Is the RBA oversteering the inflation ship? The RBA yet again ups the cash rate by another 50 bps, but how effective will it be at tackling inflation when non-discretionary items continue to increase in price. While interest rates don’t have a direct correlation to property prices consumer sentiment certainly does and it’s a scary time for many, now that the cash rate is over 2% above it’s lowest point. Dave shares some learnings from our first cash rate cycle in a decade. The 7 things buyers get wrong 1. What are the tell-tale signs of insufficient planning? Cate shares with our listeners the alarm bells that ring when insufficient planning is in the air. Are you short-cutting your plans? 2. What is an appropriate amount of planning time a buyer should invest in their search? Buckle up, it’s not going to be a walk in the park (if you do it properly). The trio discuss the time and energy that goes into a property search. Think about how much time goes into planning a wedding or a holiday and the relative cost compared with purchasing a house. 3. What are the consequences of insufficient planning? The trio dive into some of the worst outcomes that can arise from failing to plan. 4. What are the big ticket issues with overconfidence in your ability to renovate TV is partly to blame, renovations look so simple when you’re comfortable on the couch with a glass of wine. But don’t be fooled, it is not easy. The trio discuss the reluctance to pay for services like painting that you feel like you could do yourself. But, in the end, it may be worth the cost. 5. What happens when renovations go wrong, what are the options? The trio discuss how to plan for renovations to ensure the funds don’t run out in the middle of the project and what happens when the renovation pool runs dry. Visit the show notes - https://propertyplanning.com.au/the-top-7-things-property-buyers-get-wrong-part-1-ep-170/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. US not slowing down with rate rises In the US, the Fed Chairman spoke with some strong words about not making the same mistakes as in the 70’s, with taming inflation and will go as hard as they need to with rate increases. There was some talk bubbling that the US will slow down with rate rises, but that’s been sidelined and the share markets have responded. Other Western nations tend to follow the US fed, so there could be more pain ahead in terms of rate rises than markets had expected in the last month or two. 2. Auction volumes – Melbourne As we come close to the grand final public holiday, auction volumes are tending to slow down as vendors don’t like to sell on the long-weekend. Activity is expected to ramp up and get hefty in October. But watch this space, we may be in for a super Saturday on the 17th of September. 3. All major capitals are heading in the same direction (down) Looking at day on day change, all capitals are now on the downward swing. But this is normal for the property market. Looking back over the last 30 years, ups and downs are par for the course. Houses vs units 1. Regional areas vs capital cities Generally speaking, houses have outperformed units and capital cities have outperformed regional loctions. However this is not the end of the story. Capital cities suffer from greater fluctuation in prices. Which is an important reminder not to get too caught up in the short term. Will regional houses catch up with capital city units? Watch this space 2. Houses vs unit growth in our capital cities from March 2002 to December 2021 Which cities have been the winners and which city bucks the trend of houses outperforming units? Why is unit growth extremely low in Brisbane and Canberra? The trio sink their teeth into the data. 3. How have the Property Professor’s top suburbs performed? Peter revisits the suburbs that he tipped to be top performers. Which ones have outpaced the growth of their city and how have units fared compared with houses? Visit the show notes - https://propertyplanning.com.au/houses-vs-units-capital-growth-performance-in-capital-cities-and-regions-over-the-last-20-years-and-which-locations-have-units-outperformed-houses-and-why-ep-169/

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. A warning to investors intending a demolition For those investors who are looking at run-down properties with plans for a future development, it is important to consider the minimum standard of living legislation. If you purposefully purchase a home that needs a lot of work to make it liveable for tenants, you may be over capitalising when the long-term intention is to put a bull-dozer through it. 2. Smoke signals from China Unlike the rest of the world, China has just reduced interest rates to try and stimulate the economy. This is due to some prevalent risks building in the Chinese economy, such as developers going under, Chinese citizens who have refused to pay mortgages because their property has not yet been built and further covid lockdowns. This will have a big impact on Australia and the rest of the world economy. To top it off, China is heading towards their next election... watch this space. Listener questions 1. To buy or not to buy? Properties with a history of murder I’ve recently came across with a property which has history of murder. 2017. As I keep hearing property is about numbers. And the numbers are good as less buyers want it. My question is would you buy this kind of property where they have “dark history” which will eventually fade in the long run? Any Thoughts on this? 2. What kind of asset mix is best for boosting serviceability & why this may not be the first question to answer Love the podcast! Thank you for taking the time out of your busy lives and putting the show together. My question is related to financing property acquisition. Capital growth is the holy grail for property investing but it is only one side of the equation. Serviceability is the other. If you can’t service your debt, all the equity from capital growth is inaccessible. What kind of residential property asset mix should an PAYG investor consider in their property planning to boost serviceability to continue their investment journey? Does a happy intersection of capital growth and rental yield exist? 3. How will the changes to QLD land tax impact investors? What do you think will be the effect of the new changes to Qld land tax. Effectively, you will now be penalised on your Qld land tax if you own properties outside Qld. My own calculation due to my extensive holdings in all states is that this has a horrendous impact on large investors. I now will consider selling some Qld properties. I believe it will have flow on effects, where there will be less investors in Queensland, and rents will rise even more dramatically again (lower vacancy rates). how long do you think it will take for this impact to flow through and the Queensland government will be forced to look at this? The unintended consequences, I believe will be severe. Visit the show notes - https://propertyplanning.com.au/listener-questions-property-with-a-dark-history-to-buy-or-not-to-buy-what-kind-of-asset-mix-is-best-for-boosting-serviceability-why-this-may-not-be-the-first-question-to-answer-and-more/