This week we go back to our podcasts recorded pre-Covid and in this week's episode, the Property Planner, Buyer and Professor discuss data provided by CoreLogic on Australia's top performing cities. Which cities took out the gold, silver and bronze? In this episode David, Cate and Peter take you through: •Dissecting data provided from Core Logic for the last decade for all capital cities and regional centres of each state. You may be surprised by the winners and losers as we hand out the gold, silver and bronze medals. •How regional centres fared compared with their capital city counterparts and why capital growth and rental yield often have an inverse relationship. •The performance of units compared with houses, which are gaining in popularity in some cities. But beware of the data! Metrics surrounding units can very easily lead you astray. •How much $1,000,000 invested 10 years ago in each capital city would be worth today and which cities actually went backwards during that time. A good reminder that not all property rises in value! •The importance of risk management and mortgage strategies to save yourself stress and hold on to assets when the market inevitably starts to dip. •How your next investment purchase could be anywhere in Australia, depending on your price point, risk profile and stage of life. •Why values based on growth over the last ten years are now on trajectory to double every 15 years, not every 7-10. •Why your specific location and property selection is the key ingredient to financial out-performance as you do not purchase a city, suburb or a street. Every property provides a different financial return to the overall market return which is a formula-based average! •And of course, our "gold nuggets"! Visit the show notes - https://bit.ly/3hbZcVB

The Property Planner, Buyer and Professor met this morning for a 'breaking news' recording on the $688 million HomeBuilder stimulus package announced by the federal government yesterday. The new package aims to safeguard the jobs of a million tradies, and to prop up the construction industry which was teetering on the edge of oblivion. Home buyers and home renovators will be offered a cash grant of $25,000 for signing a contract to purchase a new dwelling, build or renovate from today through to 31 December 2020. Hear the full story as David Johnston, Cate Bakos and Peter Koulizos take you through: •Setting the scene, why this package was initiated by the federal government. Supporting over one million employees, around 9% of all employees in the country are working in the construction industry, which provides an estimated $100 billion and a whopping 5 per cent of our economic output each year. •How home building in Australia was collapsing prior to Covid-19 after four boom years to 2017-18, when the industry started around 225,000 homes a year. Starts have since fallen to around 165,000 this financial year due to a cascading set of events from the tightening of finance by APRA, The Banking Royal Commission and the exit of investors, particularly from offshore, and the consequent inability to finance apartment projects. •Unpacking the In's and Out's of the scheme, who can take advantage and the criteria for grant approval, how, where, when and why. •Discuss why the package is well balanced, whilst also dissecting some potential weaknesses. •How state government has said it will play a role in speeding up council approvals if needed, which must be obtained prior to signing the build contract. •Why regional areas and first-time buyers may be the big winners due to the lower value entry points, and the state-based grants and stamp duty benefits already on offer. A close second could be those who were about to embark on a major home renovation. •The impact this could have on the established property market. We could see a resurgence in home buyers wanting to buy a doer upper home. To do this within the almost 7-month time frame is no mean feat. •How the economic effects of the stimulus will flow through the broader economy and property market on a macro-economic level and this will mostly be a good news story. •Why Australia continues to build on its international reputation as a safe haven for the flow of overseas investment and capital which is vital to our economic prosperity as a capital importing nation. This has been reflected in the international willingness to purchase our government bonds, the Aussie dollar and ASX share market. The latter two of which hit 5 month and 3 month-high's respectively this week. •And of course, our "gold nuggets"!

A good property manager is worth their weight in gold, and equally, so is a good tenant. A great tenant who is happy and obliging will stay in your property for a long time - avoiding long gaps between tenancies, advertising costs for vacancies and loss of rental income. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •What makes a good tenant, it's more than simply paying on time. •What does a bad tenant look like? A bad tenant is a liability to avoid at all costs. •Does your property manager stack up? A bad property manager can be worse than a bad tenant. •The correlation between the quality of property and the quality of tenant. Low socio-economic areas do not necessarily equate with bad tenants. •How to capture a great tenant. Pricing your rent, asking great questions, arranging open for inspections and knowing your property inside out. •And of course, our "gold nuggets"! Visit the show notes - https://bit.ly/2MljDRI

In the ninth Podcast since Covid-19 took hold, we turned our thoughts to the property market forces at play, how sentiment is increasing as restrictions are easing and what's on the horizon for property. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •Supply of properties on the market continue to remain low, however competition is picking up as more buyers are jumping into the mix. •The outlook for construction remains uncertain as building and development contracts come to an end, however Government intervention is likely to support new building projects. •How the downturn has sparked interest in diversification, as we see investors looking for more balance in their portfolios, flocking to assets with a higher yield. Could this be an opportunity to snap up a great capital growth asset while yield focussed properties have higher demand? •The tried and true fundamentals of property remain the same throughout Covid-19, and that is that quality real estate is holding strong. •The long-term impact of reduced rents as demand for rentals decreases and supply increases, and the sub-markets likely to be impacted the most. •How the reduction in interest rates is helping to offset many of the negative market forces in play. Visit the show notes: https://bit.ly/3d6WbDD

This week we resume normal transmission and return to our education based Podcast, and take a break from our market and economic commentary and observations in our Covid-19 series. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •Optimising tax deductions, how utislising your offset account will help you to save tens of thousands in future tax deductions over your lifetime. •How offset accounts can help you to hold property you would have otherwise needed to sell. This alone may add $1,000,000 to your bottom line in retirement. •Calling all upgraders, how you can put your best foot forward and maximise your ability to keep your current home as an investment when you upgrade. •Why offset accounts and your mortgage strategy are fundamental to your risk management. The government and banks targeted mortgage pauses and repayment reductions during this crisis to help the economy manage through difficult times. Counter intuitively, as we have said for a long time, a lower forced payment allows you to build up more savings via your offsets without costing extra interest, allowing you to build up savings buffers and have more surplus monthly cash flow. Great to see the government and banks get on board with our strategy during a crisis! •Offset is not the same as redraw and misuse could not only cost you tax deductions, you might also get in trouble with ATO! There is a critical difference which many people do not fully understand. A misuse of your offset or redraw could lead you astray with the ATO and cause you to fail the 'purpose test'. •How offset accounts provide the platform for your Money Management System as lenders now offer multiple offset accounts linked to your loan keeping more dollars in your pocket through interest savings and better tracking of your spending. •Interest earning accounts v offset accounts and why an offset account has greater financial benefits to you. •Interest only v principal and interest, and how your repayment strategy can provide you with choice and flexibility whilst optimising your tax deductions, manage risk by improving your cash savings buffer, enhance your ability to keep and accumulate property. Counter intuitively, sometimes paying less is more in the long run - if you are using offset accounts of course. •And of course, our 'gold nuggets'!

In the eighth Podcast since Covid-19 took hold, we turned our thoughts to the property market and the multitude of forces that determine its trajectory. We look at the stabilisers, head winds and yes, even tail winds, despite what the mass media might have you believe! In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •The seller's market, how supply and low interest rates are underpinning property values. •Why auction clearance rates have improved each week for the last three weeks and one noted property market expert with a proven track record is re-calibrating his previous dire predictions for the market. •Why access to finance is critical to supporting property values, and how lender policies are adjusting given the changing economic situation. •The forecast for unemployment what this means for the property market. •The impact of sustained low interest rates on property values based on RBA modelling. •How property values remained resilient during the early 90's recession despite unemployment above 10% and the RBA cash rate peaked at a punishing 17.5 per cent. •An update on relaxed restrictions as state governments begin the process of easing, with kids returning to school and social gatherings back on the agenda. •And of course, our 'gold nuggets'!

In the seventh Podcast since Covid-19 took hold, we turned our thoughts to the alarmist headlines emerging, warning that the property market will drop by 20-30%. Why in all likelihood that won't be the case by taking a critical eye to data and forecasting, and jumping in the time machine to look at the economic impact of previous pandemics and recessions on the property market. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •We share our insights as to what we are seeing at the coal facewith residential property transactions and buyer activity. •We discuss our property market forecasts, why we hold the position that we do, and why we urge you to seek data from credible sources, whose area of expertise and skill set specialises in residential property. •How property values actually increased in April across Australia during lockdown, and why this happened, despite the negative headlines. •Why you should give short thrift to shock headlines that property values will drop significantly, and why you should be careful what you read, and how headlines are often diametrically opposed to the actual content. •A look at the Spanish Flu and the Great Depressionand how the policy and events of the time stack up to our current situation and the economic recoveries. •Analyse the residential property market data from Australia's three most recent recessions and the GFC.The results will surprise you! •Why turning the finance tap off, or rising rates are the most likely key indicatorsto precipitate a significant reduction in residential property values. •And of course, our 'gold nuggets'! Visit the show notes - https://bit.ly/3c4D7p6

In the sixth Podcast since Covid-19 took hold, we turned our thoughts to focusing on planning for your next decision, as the governments start planning for, and in some cases such as WA and QLD, removing restrictions to open up the economy. It takes time to develop your property plan and selection strategy for the next purchase. This all happens before you can even begin the searching process and get your finance approved. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •Confidence and market sentiment continue to rise with the data telling us more people are walking, driving and working as two states lift restrictions, with case numbers reducing. •Property market economics and how they can be different to the broader economy. The property market is expected to bounce back faster, there is a different set of factors at play when it comes to property values V the economy and job market. •What stimulus will remain after 6 months, what reform agenda will be rolled out, and what new incentives will be added to drive the economy? Many lender and government initiatives have a timeframe of 6 months, but other incentives and reform will take place, while some of the stimulus will remain for some time. •Who are the likely sellers and buyers in today's market? •Working out your next property decision! Now is a time for introspection and reflection, ultimately you will fall into one of two camps - people who are happy with their current home and those who wished they were in a different property. We will see many motivated home buyers after this experience who have re-evaluated their lifestyle preferences. •How coronavirus has challenged the mindsets of investors, money management, risk management and lifestyle choices - a great education opportunity for many home owners and investors. •The importance of money management and planning for the future - Covid-19 is a great example of precisely why we have focused two decades on managing risk via your mortgage strategy, despite many of the strategies being counter intuitive during the good times. Good money management never goes out of fashion. You never know when you may require a liquidity bridge. •Reverse engineering your price point via your money goals - Setting Money Goals which should determine your property price, strategy and selection. Merely borrowing the maximum available that the lender will provide, without any thought to your monthly surplus cash flow and available funds buffer, is a great way to get you into trouble, as Covid-19 has amplified. •The Property Planner, Buyer and Professor share what advice they would give their kids/staff/students if they were wondering if they should buy now or wait. •And of course, our 'gold nuggets'! Visit the show notes: https://bit.ly/35mJ7ah

In the fifth of our Covid-19 Podcast specials recorded on Monday, we turned our thoughts to focusing on the green shoots, marking the early signs of recovery with the federal and state governments now turning their focus on how we navigate an effective exit of the shutdown, whilst keeping infections low or entirely eradicated. We have seen talk of lifting restrictions, sporting bodies have been working through their plan to get back on the field and elective surgeries are back on the agenda. This adjustment in focus to how we exit successfully has the ability to spur on the initial turn in market sentiment and provide a glimpse into the possibility of opening back up the economy and workplaces. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •What are the tell-tale signs of recovery and a rebound in market sentiment? •Comparing the market forces between last year's post-election recovery and how the post Covid-19 property market rebound could play out in 2020 and 2021. •Who are the early movers that have the confidence to purchase in a shifting market and are you prepared to take the plunge? •Negative Nellie's - why the media is focused on predominantly negative outcomes and you should be very selective in who and what you listen to. •The Bull Market of the last two weeks and how the US federal reserve stared down short sellers - how the share markets are a leading indicator of the overall economy (but has the rebound been overly optimistic?), what the US federal reserve did to stave of short selling hedge funds and some education on how the financial markets work. •And of course, our 'gold nuggets'! Visit the show notes: https://bit.ly/2Vnae1q

In the fourth Podcast in our Covid-19 specials recorded on Monday we turned our thoughts to focusing on the impact to landlords, tenants and those selling property. NSW and QLD have released their packages for assistance to landlords and the residential market was rocked last week by Consumer Affairs Victoria announcing that open for inspections for occupied homes would be banned. Victoria has since backtracked and reversed these restrictive regulations yesterday. In this episode David Johnston, Cate Bakos and Peter Koulizos take you through: •Restrictions on landlords - as the state governments enact 'no evictions' for non-payment of rent, preventions on rental increases and inspections done via video conference. •What to do if your tenant is unable to pay rent - if you have a stable income, now is the time to refinance to reduce repayments, get on a lower rate, consolidate debt, access equity to increase your liquidity bridge to get you through to the other side. Be clear on your landlord insurance and what it does or does not cover. Get on the phone with your lender and swap to interest only - ASIC has updated their responsible lending guidelines to allow for this. Repayment pauses are available and should be an option of last resort as most lenders are capitalising interest. •Tenants who are falling through the cracks - international students, those on temporary visas and people casually employed for less than 12 months do not meet JobKeeper and Jobseeker criteria. •Regulations for commercial rentals - if your business has been impacted by Covid-19, your rent must be decreased by 50% of the revenue lost, if you have lost more than 30% revenue, with 2 years to make up the difference. •The longer-term impact to the commercial rental market as businesses successfully work from home. •Lack of regulation for residential rentals as the rental market takes a dip - landlords encouraged to cut a deal with their tenants and real estate agents left to decide how this process is managed. Anecdotally, rents have decreased by 5-15% due to decreasing demand. On the supply side, Airbnb and other properties which were short-stay rentals are set to come onto the market in droves. •Increasing difficulty to sell - as Consumer Affairs Victoria has quickly revoked their regulation announced last week that occupied homes could not host open for inspections. •And of course, our 'gold nuggets'! We wish you and your families the best of health and say a big thank you to all our health workers during this time. Visit the show notes: https://bit.ly/2wDSQvR