Podcast appearances and mentions of cate bakos

Melbourne’s property market has been through a lot lately — ups, downs, and now a bit of a bounce. Is this a genuine turnaround, or just a brief shift before more challenges arise? In this episode, we chat with Cate Bakos, a seasoned Melbourne property market specialist who knows the city’s market dynamics better than most. Cate shares what she’s seeing at the coalface — from interstate investors jumping in to locals cautiously testing the waters. We dig into the impact of Melbourne’s massive infrastructure projects, the aftermath of the city’s harsh lockdowns, and why sentiment can sometimes outweigh the raw data. Cate also touches on the challenges investors are facing, like rising land taxes and stricter rental regulations. It’s a complicated picture, and there’s a lot to consider. If you’ve been curious about whether Melbourne’s market has truly found its feet or if this is just a momentary shift, you should listen to this episode. Join us as we unpack what’s really happening on the ground, the signals that may hint at a lasting change, and the realities buyers, sellers, and investors need to navigate. Episode Highlights: 00:00 - Introduction 01:05 - Who is Cate Bakos? 02:39 - What’s driving the surge in buyer activity across Melbourne? 09:29 - Has Melbourne’s mojo returned post-COVID? 13:57 - Is the recent investor interest in Melbourne based on solid data—or just market bias? 17:05 - Cate weighs in on the narrative around high listing volumes in Melbourne 21:01 - What does Victoria’s $1 million daily interest bill mean for property? 26:42 - Buyer preferences are shifting again—are we back to wanting proximity over space? 31:20 - Do younger buyers still prefer the same suburbs and homes as older generations? 34:35 - Why some Melbourne apartments are struggling while others hold strong 38:10 - Has land tax made buyers think twice about purchasing a holiday home? 40:34 - What’s driving Melbourne’s tight rental market and rising yields? 45:38 - Are interstate investors replacing locals who’ve sold out of Melbourne? 46:23 - Cate explains who benefits most from Victoria’s Shared Equity scheme 49:41 - What will it take for upgraders and downsizers to re-enter the market? 51:11 - Cate Bakos’ property dumbo About Our Guest: Cate Bakos, with a Chemistry degree from Monash University, transitioned from a successful career in sales and marketing with Orica to becoming an award-winning real estate professional. After purchasing her first property at 21, she moved into Melbourne’s Bayside property market, later founding Cate Bakos Property in 2014. Cate has guided over 2,000 clients through property purchases and strategies, leveraging her expertise in lending policy and cashflow analysis. A regular media commentator, Cate co-hosts “The Property Trio” podcast and authored “Successful Property Investment.” She served as REBAA President from 2019 to 2023 and continues to mentor young industry professionals. Connect with Cate Bakos: Website https://www.catebakos.com.au/ LinkedIn https://www.linkedin.com/in/catherinebakos/ Instagram https://www.instagram.com/cate_bakos_property/ Resources: Visit our website https://www.theelephantintheroom.com.au If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast questions@theelephantintheroom.com.au Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au Work with Veronica: https://www.veronicamorgan.com.au Looking for a Mortgage Broker? https://www.alcove.au Work with Chris: chrisbates@alcove.au Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now! Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcast Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719 Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765 See omnystudio.com/listener for privacy information.

One of the most popular features of the Money Puzzle podcast has been listener questions which we read on air: Now we want to hear you asking your questions! We're asking listeners to send in a voice memo from their phone and share it on the show to themoneypuzzle@theaustralian.com.au. Also in today's show, we cover the problem with quirky properties. Buyer's advocate Cate Bakos warns lovers of converted churches and renovated show factories that standing out from the crowd is not always profitable. Bakos explains what makes a property valuable : It appeals to the widest possible audience. ----------------- In today's show, we cover: Irregular properties - quirky can be costly Closed tenders - Good or bad? Tricky tax arrangements around 'granny flats' Why lending rates will keep falling See omnystudio.com/listener for privacy information.

Women are increasingly taking a leading role in property decisions - from the initial research to the purchase phase. But just how much influence do they have? We chat with Cate Bakos, property investment advisor and buyers agent, and Karuna Mazzocchi, CEO of the Coronis Group, about the shifts they've seen in the last few decades, their hopes for the future of the industry, and why and how more women are driving property decisions.

Cate Bakos https://www.linkedin.com/in/catherinebakos/Cate Bakos Propertyhttps://www.catebakos.com.au/The Property Trio Podcasthttps://www.propertytrio.com.au/The Buy Right Approach To Property Investinghttps://bit.ly/4jWWXpk

Cate Bakos has had her fair share of ups and downs throughout her property investment journey. But what sets her apart is her ability to quickly analyse, break down, and learn from these erroneous decisions.As a recipient of Sterling Publishing's ‘high commendation', a finalist for Telstra's Business Woman of the Year, and a National Winner of the Buyer's Agent of the Year, Bakos has proved the worth of these critical lessons.In this podcast Cate Bakos and host Tyrone Shum will discuss the lessons learnt throughout her journey, and how you can use her experiences to improve your own portfolio choices. Hosted on Acast. See acast.com/privacy for more information.

Cate Bakos has had her fair share of ups and downs throughout her property investment journey. But what sets her apart is her ability to quickly analyse, break down, and learn from these erroneous decisions.As a recipient of Sterling Publishing's ‘high commendation', a finalist for Telstra's Business Woman of the Year, and a National Winner of the Buyer's Agent of the Year, Bakos has proved the worth of these critical lessons.In this podcast Cate Bakos and host Tyrone Shum will discuss the lessons learnt throughout her journey, and how you can use her experiences to improve your own portfolio choices. Hosted on Acast. See acast.com/privacy for more information.

How long could we reasonably expect governments to take, to sort out a problem like the rental shortage? I ask the question because we have had the problem of a shortage of options for tenants in Australia – and the consequent steep rises in rents - for a very long time. And it keeps getting worse, not better. The latest data from SQM Research shows that, nationally, the vacancy rate got a little worse last month, dropping from 1.3% in August to 1.2% in September.  Three of our capital cities have vacancies well below 1%. And in six of the eight capital cities, vacancies stayed the same or got smaller in September. In only two cities was there a slight improvement.  But the key piece of information is the longevity of this rental shortage crisis.  Australia has had vacancies below 1.5% for close to three years now. It's generally considered that a balanced rental market – one in which there is ample supply of homes for tenants to choose from and rents are stable – is one where vacancies are at least 3%. The data from SQM Research shows that Australia has not had a vacancy rate as high as 3% at any time in the past 20 years. The closest we came was 2.9% in April 2020 after the onset of Covid caused major disruption to property markets.  Since then, the national vacancy rate has dropped sharply, reaching 1.2% in March 2022 – and it has hovered between 1% and 1.3% for the past two and a half years. According to SQM Research, a further 1,700 rental properties disappeared from Australia's rental market in September – at a time when the nation's population has surpassed 27 million. The SQM report said: “The total number of rental vacancies now stands at 37,932 residential properties, a decrease from 39,665 in August.”  There are clear reasons why we have had this steady decline in the number of properties available for rental, a shortage which has caused rents to rise and rise. Mostly, those reasons relate to the decisions of politicians, particularly state politicians, in making life increasingly onerous for the investors who provide over 90% of the homes that people rent in Australia. State and territory governments have increased taxes on investors and have changed the rental laws in ways that have eroded the rights of the owners. This has led to a reduction in the number of homes available for rental. In Victoria, the state with the most onerous conditions for investors including big tax increases, the number of rental properties in the state has fallen by 22,000 so far this year, as the investor exodus gathered momentum on the back of anti-landlord legislation. That's according to new data from the Department of Families, Fairness and Housing. And its data supports a trend identified in the latest Investor Sentiment Survey published by PIPA – the Property Investment Professionals of Australia (PIPA). The survey described a "sell-off of investment properties around the nation" that has "continuing unabated" and "fuelling fears of an even tighter rental market". But the problem is most acute in Victoria. PIPA Victoria board director Cate Bakos says legislative changes and increased taxes are driving investors from the state. A new land tax regime, minimum rental property standards legislation, and policies that are seen as overly tenant-friendly have caused many investors to sell up in Victoria. Nicola McDougall, the Chair of PIPA says: “This is predominantly due to its plethora of anti-investor rental reforms, as well its new land tax regime that is set to cost investors billions of dollars over the years ahead.” PIPA's annual investor sentiment survey found Victoria was regarded as the “least accommodating” state or territory for property investors in the nation, with 22% of survey respondents indicating they had sold at least one dwelling in Melbourne in the last year. As a consequence, rental availability has fallen and rents have risen. Data from Domain shows that the vast majority of Melbourne suburbs recorded rent rises this year, continuing a trend that has extended over several years. According to the Domain rent report for the September quarter, the median house rent in Melbourne at the start of 2022 was $440 a week. Now it's $580 a week. The median unit rent was $375 a week in January 2022 and now it's $550 a week. That's an increase of almost 50% in less than three years. But the problems keep getting worse, with NSW being the latest state government to pass new laws detrimental to landlords. REINSW CEO Tim McKibbin says the lessons for the NSW Government are crystal clear but have been disregarded. He says: “The removal of landlords' rights under the guise of populist rental reforms has had a clear negative impact on renters elsewhere. “The rental reforms by the NSW Government will result in more investors selling up or opting for a short-term accommodation strategy, both of which remove more properties from the private rental market. “This is already happening and it's happening at a time when the NSW population is increasing by over 15,000 people each month. The rental market is in crisis and we need solutions, not reforms that we know from recent experience will make the problem worse.” And that pretty much sums up the seriousness and absurdity of this ongoing issue. Australia has had a rental shortage crisis for several years but the only policies implemented by state governments have made a bad situation even worse.  

This week, we continue with part two of our East Coast property market update, once again joined by Cate Bakos. In this episode, we delve into the nitty-gritty of what your budget can buy in Sydney, Melbourne, and Brisbane, as the market shifts through 2024. From first home buyers eyeing properties in the $600k-$700k range to those with budgets up to $1.5 million, we break down the opportunities and challenges each city presents. We start with Melbourne, where Cate shares insights on how infrastructure projects are shaping affordable areas, particularly in the outer suburbs. Then, we head to Brisbane, where increasing competition and unique risks—such as black soil issues—require careful consideration for buyers, especially in the $700k-$800k bracket. Finally, we turn to Sydney, where the market remains highly competitive, and buyers with budgets below $1 million will face difficult choices between apartments and older homes in outlying suburbs. Tune in to find out how these three markets compare, what to watch out for, and where the best value for money can still be found. Episode Highlights: 00:00 - Introduction 02:19 - Buying a property in Melbourne, Brisbane and Sydney for $600k - $700k 09:08 - Buying a property in Melbourne, Brisbane and Sydney for $700k-$800k 13:41 - Buying a property in Melbourne, Brisbane and Sydney for $800k - $1 million 21:57 - Buying a property in Melbourne, Brisbane and Sydney for $1.1 million - $2 million 25:15 - Investment strategies and property selection in Sydney, Melbourne & Brisbane 32:00 - Rental market & legislative shifts in Sydney, Melbourne, and Brisbane 44:42 - The challenges of increased land tax and rental reforms 51:29 - Property risks, key drivers, and opportunities — Melbourne 54:10 - Property risks, key drivers, and opportunities — Brisbane 56:57 -  Property risks, key drivers, and opportunities — Sydney Resources mentioned in this episode: Buying Property in Sydney, Melbourne, or Brisbane? Here's What You Need to Know (Part 1) https://homebuyeracademy.com.au/podcasts/195 Resources: FREE MINI COURSE: How to price property like a professional https://www.homebuyeracademy.com.au/freecourse Meet our recommended mortgage brokers at Home Buyer Academy https://homebuyeracademy.com.au/brokers Visit our website https://www.homebuyeracademy.com.au/ Join our Facebook Group to get access to free monthly live Q&A sessions https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia Learn how to buy property without making a mistake with our ultimate 10-step online course for first time home buyers https://homebuyeracademy.com.au/YFHBG If you have any questions or would like to be featured on our show, contact us at: Your First Home Buyer Guide Podcast support@homebuyeracademy.com.au Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au Work with Veronica: https://www.veronicamorgan.com.au Looking for a Brisbane Buyers Agent? https://www.propertypursuit.com.au/ Work with Meighan: https://www.linkedin.com/in/meighanwells/ If you enjoyed today's podcast, don't forget to subscribe, rate, and share the show! There's more to come, so we hope to have you along with us on this journey! Subscribe on YouTube: https://www.youtube.com/@YourFirstHomeBuyerGuidePodcast Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825 Subscribe on Spotify: https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f See omnystudio.com/listener for privacy information.

If you're thinking about buying property in Sydney, Melbourne, or Brisbane, you're in the right place. In this episode, we talk about the key differences between these three major Australian cities—because let's be honest, what works in one city might be a complete disaster in another. We're here to help you figure out where your money goes further, what's happening in 2024, and how to avoid some of the biggest traps buyers fall into. We have Cate Bakos joining us from Melbourne who shares what's really happening in the Victorian market—especially after those long lockdowns and the media hype. Next up, we bring you all the latest on Brisbane's booming market, which is moving faster than it has in years. And of course, we also cover Sydney, where even in a so-called “normal” market, there are still plenty of surprises to handle. We know there's no one-size-fits-all answer when it comes to the best buying strategy, so we're giving you real, on-the-ground insights to help you make the best decision for your situation. Episode Highlights: 00:00 - Introduction 02:54 - Who is Meighan Wells? 03:26 - Who is Cate Bakos? 04:05 - Who is Veronica Morgan? 05:41 - General Market Conditions in Melbourne 07:59 - General Market Conditions in Brisbane 18:23 - General Market Conditions in Sydney 22:21 - Is there a sweet spot for investors at the moment in Melbourne? 33:08 - Is the property market competitive in Brisbane at the moment? 39:35 - What are the most competitive price ranges and property types in Sydney About Our Guest: Cate Bakos, with a Chemistry degree from Monash University, transitioned from a successful career in sales and marketing with Orica to becoming an award-winning real estate professional. After purchasing her first property at 21, she moved into Melbourne's Bayside property market, later founding Cate Bakos Property in 2014. Cate has guided over 2,000 clients through property purchases and strategies, leveraging her expertise in lending policy and cash flow analysis. A regular media commentator, Cate co-hosts “The Property Trio” podcast and authored “Successful Property Investment.” She served as REBAA President from 2019 to 2023 and continues to mentor young industry professionals. Connect with Cate Bakos: Website https://www.catebakos.com.au/ LinkedIn https://www.linkedin.com/in/catherinebakos/ Instagram https://www.instagram.com/cate_bakos_property/ Resources: FREE MINI COURSE: How to price property like a professional https://www.homebuyeracademy.com.au/freecourse Meet our recommended mortgage brokers at Home Buyer Academy https://homebuyeracademy.com.au/brokers Visit our website https://www.homebuyeracademy.com.au/ Join our Facebook Group to get access to free monthly live Q&A sessions https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia Learn how to buy property without making a mistake with our ultimate 10-step online course for first time home buyers https://homebuyeracademy.com.au/YFHBG If you have any questions or would like to be featured on our show, contact us at: Your First Home Buyer Guide Podcast support@homebuyeracademy.com.au Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au Work with Veronica: https://www.veronicamorgan.com.au Looking for a Brisbane Buyers Agent? https://www.propertypursuit.com.au/ Work with Meighan: https://www.linkedin.com/in/meighanwells/ If you enjoyed today's podcast, don't forget to subscribe, rate, and share the show! There's more to come, so we hope to have you along with us on this journey! Subscribe on YouTube: https://www.youtube.com/@YourFirstHomeBuyerGuidePodcast Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825 Subscribe on Spotify: https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f See omnystudio.com/listener for privacy information.

Welcome to this Rask listener story episode. This is a deep dive into the journey of someone in our community. We'll talk about overcoming their fears and uncertainties, the failures and the successes they had with money, business and investing. These episodes are designed to tell a story, rather than be a source of financial expertise. By telling your stories, my hope is that we can bring the Rask community closer together and allow you to feel welcome, not matter what brought you here.  If you want to share your own story or simply reflect on the stories of others, head over to the free Rask community and send me a message. I'd love to hear from you.  Rask Community: https://bit.ly/rask-com Reg's story talks about: The impact of separation on a child Growing up without any mentors Using podcasts and books to gain courage The prospect of getting financial advice Automation and using ETFs Books: Unf*ck your finances (Mel Browne), Strong Money Australia (Dave Gow), Buy Right Approach to Property (Pete Wargent & Cate Bakos), Barefoot Investor (Scott Pape) and Ulysses Contract (Mike Kemp) ~~ Key resources for this episode ~~ Book a call with Flint: https://bit.ly/broke-rask Rask community (have your say!):  ~~ Resources you'll love ~~ Invest with Owen: https://bit.ly/R-invest Mortgage Broking: https://bit.ly/broke-rask Financial Planning: https://bit.ly/R-plan Property Coaching: https://bit.ly/R-P-coach 100-point property checklist (PDF): https://bit.ly/prop-check Accounting with Grey Space: http://bit.ly/3DG5lWS Business Coaching: https://bit.ly/o-coach Ask a question: https://bit.ly/3QtiY00 DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you're confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg Learn more about your ad choices. Visit megaphone.fm/adchoices

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMRentvesting is not for everyone, but many people do not even consider it, which may be to the detriment of their finances or lifestyle.  Maintaining an open mind to rentvesting and exploring it's potential will provide you with greater clarity on your pathway forward, whether you take that path or cross it off as an option. Dave explains what rentvesting is, and why it's becoming a popular strategy among first-time buyers. From desireable rental locations to growing wealth, there are plenty of reasons why some choose to adopt this strategy.  Mike touches on the key benefits and he highlights his own rentvesting benefits that he's currently experiencing. Cate covers off some of the reasons why rentvesting is more affordable in capital cities, particularly the lower-rental-yielding cities such as Melbourne and Sydney.  Dave shares a real-time example in Melbourne's leafy Hawthorn East. He contrasts a mortgage versus a rental property for a make-believe couple and the cashflow differentials are quite a surprise!For a first home buyer versus a renter, the difference in monthly cost is more than three times.  Was buying always this difficult? Cate dares to ask the question and Dave steps our listeners through the last forty years. But Cate sheds light on the cost of property on the opposite side of town. How do these locations compare, and what is the multiple of the average annual wage these days?Mike explains why it's so difficult to get into highly sought-after locations, but he also explains why the number of rentvestors is so limited. And there are quite a few reasons!  But how short a tenure is too short for a rentvestor? Tune in to find out.... .... and our gold nuggets!  Dave Johnston's gold nugget: Carefully consider your own personal situation and goals. Rentvesting can be great, but it's not for everyone. It only makes sense that your property decisions should be informed by your over-arching property strategy. And how will your next purchase impact your future purchases? This is a very important question.Mike Mortlock's gold nugget: Mike uses a car analogy. Selecting the right car for the right track is critical. "Asking the place where you want to live to be the investment as well, is sub-optimal for property success." Cate Bakos's gold nugget: Cate reminisces about a successful real life client scenario that was based on a well-carved out strategy. Show Notes: https://www.propertytrio.com.au/2024/07/01/rentvesting/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMHelping versus hindering our children's financial futures... it's all about mindset! Dave hosts today's episode and the Trio enjoy sharing their thoughts about the various ways we can help our children get a foot on the property ladder.First homebuyer participation is up a little bit when contrasted against recent years. Dave runs through some of the key reasons that could be contributing to this increased level. First home buyer activity bounced up with targeted government incentives during GFC recovery and COVID recovery. Both also had record low interest rates.“The series shows only two substantial spikes in first home buyer loans between 2008-09 and 2020-21. These can largely be explained by temporary government incentives for housing purchases. There was a temporary boost to the first home owner grant introduced around the GFC, and a temporary HomeBuilder grant introduced around the onset of the pandemic (which was not specifically targeted at first home buyers, but could be used in combination with the then recently introduced ‘First Home Loan Deposit Scheme').” (Source: Core Logic) The Trio take a walk down memory lane as they recall some of the various first home buyer incentives introduced by our governments since the GFC. Dave canvases the concept of false economy when it comes to incentives and price points that some buyers chase that don't completely align with an optimal strategy.Cate delves into some of the issues that could arise when parents' generosity is too great.  From a lack of appreciation to jealousy among peers, (and many others), there are some significant risks that need to be considered.Cate chats about hers and her husband's approach with their daughter's property deposit savings regime. From a small inheritance from her grandmother a few years ago, followed by ETF share portfolio outperformance of that little nest egg, this seventeen year old has been making regular contributions to her portfolio with her part time job. What is the deal that Cate has struck with her? Tune in to find out...  The Trio reflect on the great encouragement that their own parents imparted. Thinking about the great lessons and moments of pride during our own childhood can lead to some great ideas that can be paid forward.   And lastly, Cate talks about some of the non-financial ways that we can make a positive difference for kids these days. .... and our gold nuggets!  Cate Bakos's gold nugget: When you're working out how you can help your kids with their financial future, make sure you let it be their journey.Mike Mortlock's gold nugget: Mike reflects on Cate's daughter's $5000 nest egg which was compounding. That 'early win' is a very valuable introduction to good investing. Dave Johnston's gold nugget: Getting his children applying some research and selecting companies in a share portfolio from the age of grade six is an exciting plan that Dave has been considering.  Show notes: https://www.propertytrio.com.au/2024/06/24/helping-our-children/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMMike kicks off this episode, and the Trio chat about the ferocity of the Perth market and they ponder the nature of cyclic markets. Is Perth cyclic? And is this city sharing a pattern with any other cities, or is Perth unique? And how is it possible that rental growth is still strong when investors are buying up? Brisbane's outperformance is noteworthy too, with this beautiful city taking the lead on Melbourne. Hobart's decline in rents defies most of the nation, but Cate explains some of the driving forces at play. Namely, the sea-change/sea-change moves during lockdown are reversing for many, and combined with the update in overseas holiday activity (to the detriment of domestic travel), cities like Hobart are experiencing different trends to most of our other capital cities.Mike tackles yields and marvels at the combined capitals average yield, but as Cate reminds listeners, average yields are not a perfect measure because the ratio of houses/units across our cities varies greatly. If only Core Logic could give us a separate measure for houses versus units!And what is happening with listings? We have more new listings than previous years, but our total listing figures are below historical levels. This tells us that buyer demand is strong, and is soaking up the listings faster than they are hitting.While the Spring market has returned after two years of glitches to 'the norm' over COVID, some things have changed. Cate talks through some of these, including off-market listings."Such a tale of eight cities", says Mike as he compares the difference in listing volumes across several capital cities.  But by drawing our listener's attention to the three data sets, (new listings, old listings, total listings), in triplicate they tell a very interesting story. Cate ponders the viability of gauging the retraction of old listings when it comes to identifying markets that may be over-heated.This month's Westpac Consumer Sentiment Index is reasonably unchanged from last month. There is no doubt that the affects of higher interest rates are biting for many households. However, as Cate says, "It's a bit of a boring chart, but right now, boring is good." Lending indicators are showing some strong numbers; with the exception of construction. Despite investor numbers coming off a low base, Dave explains that buyers are making decisions now that it's obvious that the risk of interest rate increases is lower.Cate shares an interesting chart that segments funding into construction, established, land, new builds and alterations/repairs. There is no doubt that the pain of the construction industry is showing up in the data.The bond yields shows that the rate today is predicted by the markets to be the 'new norm'. Dave steps the listeners through some of the charts, including the unemployment data."Unemployment has often been the collateral damage as the RBA has been increasing rates to bring down inflation, but this time they are trying a different tact, and they've actually said that", states Dave.And... time for our gold nuggets...  Cate Bakos's gold nugget: Buyers have to consider a broad picture before they circle in on one city that's doing well. Getting our hands on the rate of change of old listings offers a bit of valuable insight.David Johnston's gold nugget: Market updates talk about the monthly market gyrations, but ultimately it's about the big picture and the long term that really matters. And what's right for your personal circumstances is vital. Understand your own strategy and understand the price point that's right for you. Show notes: https://www.propertytrio.com.au/2024/06/17/ep-262-may-market-update/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMDave opens our episode with a cautionary tale. We are grateful to our listener, Daniela who wrote to us about a challenging experience she and her husband had with a purchase she described as a "lemon."After having bought a house and land package in Perth that delivered underwhelming capital growth performance for nine years, Daniela and her husband chose to sell the asset when moving to Melbourne for work. Sadly their timing wasn't great and they feel they missed the full cycle (home, upgrade, downsize). Now they find themselves with $110,000 in savings, a limited array of property options that appeal to them, a student son living with them, and a dilemma on their hands.Do they buy a house in the outer suburbs or consider apartments? And if they can afford two apartments instead of a house, will this help them gain a better financial position? Mike and Cate tackle the houses vs apartment outperformance question. Cate steps back to the heart of the listener question and suggests that finding a suitable home should be the primary focus at this stage, (as opposed to their appetite for capital growth outperformance).  Four unfortunate headwinds have compounded the issue for the couple now, namely; Their timing with the Perth market was unfortunateMarkets are cyclical and managing market cycle risk is always a challenge when buy and hold timeframes are shortHouse and land packages are notorious for underperformance due to the lower Land to Asset RatioMelbourne's broad property value is still greater than Perth"Over the previous ten years, Melbourne prices grew 96 percent, yet Perth prices in the same timeframe only delivered eight percent."From managing simultaneous sales/purchases to strategising a surprise interstate move, Dave touches on some of the important elements for buyers to consider.  Daniela and her husband sold the house in Perth, but could have they had a better long term outlook if they'd held onto Perth? And should they be buying in Melbourne now that they have moved there? There are a lot of questions that the Trio bring up for our listener couple to think about.Daniela has nominated two options that she feels could be feasible, but why does Cate suggest that she could be on the wrong track? And what other options could be viable? Tune in to find out... Stage of life is very important when it comes to determining a property plan. The Trio discuss the next items for Daniela and her husband to canvas in relation to their strategy.  "If they are focusing on Melbourne as their forever place, there is a silver lining. The market has stood still for them", says Cate. .... and our gold nuggets!  Mike Mortlock's gold nugget: "Avoid perverting the course of what you are trying to achieve with dual ambitions." Having a clear strategy on a primary requirement can mitigate this risk.Cate Bakos's gold nugget: Only once you trigger a sale event is when a result is crystallised. Cate recommends buyers seek professional advice before triggering a loss or a gain. Shownotes:  https://www.propertytrio.com.au/2024/06/10/recovering-from-buying-a-lemon/

People have different views on the idea of real estate as a form of investment. However, there's one detail on which pretty much everyone agrees: investing in property is expensive. That's why anyone who invests in property wants to ensure they make the right choice.In this session, Natasha Etschmann (Tash Invests) and Ana Kresina (Head of Product & Community at Pearler) chat with someone who's uniquely qualified on this subject. Cate Bakos is a qualified buyers agent, owner of Cate Bakos Property, and author of The Buy Right Approach to Property Investing.During her chat with Tash and Ana, Cate shares her checklist for anyone inspecting a property. She also covers her tips for buying at auction, and how a buyers advocate can be invaluable. Join us for this deep dive into all things property investing!@tashinvests@anakresina@getrichslowclub@pearlerhqGet Rich Slow ClubPearlerYouTubeDisclaimerAny advice is general and does not consider your financial situation needs, or objectives, so consider whether it's appropriate for you. You should also consider seeking professional advice before making any financial decision.Natasha Etschmann is an Authorised Representative #1299881 of Guideway Financial Services Pty Ltd AFSL#420367. Read the FSG available from https://tashinvests.com/linksPearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guideIf you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer's website before deciding. Hosted on Acast. See acast.com/privacy for more information.

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThis week, we unpack a fabulous listener question from Melissa. "What advice would you give to those of us who have construction loans were the build is dragging and we're being squeezed between increasing rents, increasing interest rates, and increasing construction costs?", she asks. "And what advice would you give to anyone considering a construction loan? " Cate steps through some of the planning, building and environmental issues that can threaten a build or renovation.Mike sheds light on the flow-on effects that are triggered by planning and building delays. From overcapitalisation to materials surcharges, council enforced orders and others, there are some serious risks that must be considered by those who decide to build or renovate.How can renovators avoid some of the stressors? Dave has some good tips...  How many people consider the contractual details, milestone payments, additional costs and cashflow considerations? It can be tricky to navigate these points, but Mike has some great ideas he shares with the listeners who are considering embarking on a build or a renovation. How long should people spend in the planning phase?  Mike sheds light on some of the elements that get missed at the design phase. Did you know that approximately 60% of defects occur at the design phase?The Trio share their advice for those who are thinking about a construction loan. Construction lending experience is critical, and Cate and Dave chat about the key differences between traditional, established-property lending versus construction lending. And what is an "as-if completion valuation"? And what is the process that needs to be followed? Mike gives us some valuable insights into the role of a Quantity Surveyor.  ..... and the gold nuggets!  Cate Bakos's gold nugget: There are three things that Cate thinks are really important to nail. 1. understand the budget. 2. work with someone who will work to your budget. 3. have a very good strategic finance person on your side.Mike Mortlock's gold nugget: "Make sure the contract is reviewed!" Having an firm understanding of all of the important elements is so valuable for those who are building and renovating. Show notes: https://www.propertytrio.com.au/2024/05/27/home-building-and-development-project-perils/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMCate circles on on what technically defines a townhouse. She shares an example and talks about the differences between apartments and townhouses when it comes to land on title.Mike asks a tough question, "How do townhouses perform, as compared to houses?" but as Cate points out, it's not a hard and fast rule. There are elements that can bolster up the value (and performance) of a townhouse such as vista, prestigious locale, water views etc. Of course Land to Asset Ratio comes into play, but it isn't fair to classify all townhouses the same. Dave talks about the complexities of buying a townhouse that is yet to have it's subdivision registered. This is technically deemed an 'off the plan purchase' and this does carry lending risk for some buyers.  But what can buyers do when they need to move in to their new home by a certain date, but title registration is delayed? Cate shares an interesting possible solution .... a license agreement.Cate runs through the various subsets of units; apartments, villa units, and townhouses. She breaks down the hierarchy of land ownership for each subset and details some of the formats of townhouses and common land versus no common land. And how do some townhouses qualify for no owner's (or strata) corporations?  "These types of townhouses are inherently more valuable". The Trio delve into the attributes that developers look for to optimise their profits on a multi-unit development site, but Cate also talks about some of the investor mistakes associated with medium-density development activity areas.  What are some of the attributes that Cate looks for when assisting developer clients? Tune to find out... Lending is not always straight-forward or easy for developer finance and Dave shares some of the categories of lending and LVRs, from small-time residential to larger-scale commercial. Buckle in for some valuable, technical insights and explanations, and Cate points out the risks.  And what are some of the things that developers get wrong?  ..... and the gold nuggets! Cate Bakos's gold nugget: Bedroom count can create a difficult compromise. Is the bedroom too tight? Is the proportionality of the unit not feeling right? You have to ask yourself the question; "Have you bought yourself a lemon?" Overcapitalisation risk challenges the profitability of making changes, so buyers need to search in the right area for the right townhouse.  Dave Johnston's gold nugget: If a townhouse is going to be a stepping stone home or an investment, it can be quite feasible for first time buyers. Dave implores buyers to consider buying into a great location that is close to where they would ultimately like to live in their family home. Mike Mortlock's gold nugget: Mike likes townhouses! Provided, of course, that they are well-located. He notes the stronger rental yields, but his concern is that of scarcity. Show notes: https://www.propertytrio.com.au/2024/05/13/all-things-townhouses/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMMike has crafted a great episode from the 2020/2021 tax year data.The average income rose to $68,289. Surprise, surprise, Double Bay came in at first $266,000 and Dover Heights, Rose Bay and Vaucluse came in second at $230,597, and Toorak (Vic) starred, but Cottesloe and Peppermint Bay in WA came in third at $229,000.The median is what's interesting. Stats can be distorting. The median in the top ten suburnbs is $80,000, but the average is significantly higher”Cate sheds light on the returns lodged during the year 2020/2021 which were up 28.3% on the 2006/2007 financial year.A large proportion of SMSF owners account for this strong differential and the Trio ponder the popularity of SMSF investment.“If you don't own your own home, you're in big trouble when you retire.” How much truth to this claim is there? The Trio unpack the history of superannuation and reflect on super from an employer's angle too.The big bucks earners start with Surgeons at an average income of $457,281, followed by Anaesthetists, then ‘Financial Dealers' (whatever that means?!), and fourth with Mining Engineers.Where does the revenue come from? Company tax and GST, followed by individual income tax, and only 15% is GST. Dave dares to raise the concept of bracket creep.Mike shares a startling stat, “88.35% of Aussies earn less than $120K, but the remaining 11.65% pay just over half of all income tax in Australia.” The bracket that most Australians sit within is the $6001 – $37,000 income earners. Dave adds that 4% of income earners pay 35% of tax and he highlights the sensitivities of bracket creep and the required changes.Historically we have always had net rental losses, but what happened in 2020/2021? Cate explains…tune in to find out!How many people earn six or more properties? Cate has some insightful stats to share. Check out our show notes to see an interesting breakdown..….. and the gold nuggets!Mike Mortlock's gold nugget: Things are a little bit more complex than the media would have you believe. When you slice and dice the data, you get some interesting results. But stay tuned for the battle leading up to the Federal election.Cate Bakos's gold nugget: The fiancial year where we saw net rental gains (2020/2021) needs to be contrasted against the following year. We're on treacherous territory with over 90% of private investors servicing the rental market while our politicians focus on the downside of negative gearing.Dave Johnston's gold nugget: The word negative gearing needs to be understood better in relation to all business activities. As Dave points out, when this term is associated with property it's portrayed as ‘the big bad wolf', but negative gearing is widely misunderstood.Shoe notes: https://www.propertytrio.com.au/2024/05/06/ato-insights-unveiled-what-does-the-data-tell-us-about-investor-behaviours/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMCate kicks off the episode and invites Dave to share a bit of information about our exciting case study couple and their quest to move to Venus Bay to enjoy a simpler life. They asked Dave's team to help them work out how they can achieve their goals, including the generation of a passive income and retaining their Melbourne home as an investment. Is it realistic? Is it achievable?The Trio delve into the emotions that can run when setting these types of goals. They also congratulate our case study couple for having a firm goal and setting about constructing a plan. "Not having a plan is like chipping away at a piece of marble without knowing what the statue is going to be", says Mike.  Rachel and Marcus have a very solid financial outlook. Cate gives a fiscal snapshot of their debt, income and equity position for context and Dave runs through the critical questions that are asked in order to determine their property plan. Our case study couple rated themselves on the risk profile meter as 4-4.5 out of 5, however the Trio challenge this and discuss their rationale for down-scaling our couple to lesser risk score.  Dave steps through the assumptions and inputs, and Cate weaves through each of the three scenarios that were presented to the couple.  What is a prudent capital growth forecast rate? And when should consumers be wary? Mike expands on the reasons why some claims can be dangerous and Cate warns about the risks of buying brand new.The three scenarios show a progression of outcomes, and with small tweaks and changes, each scenario is quite different from the last option. But what are some of the most stunning outcomes, and what are the powerful tweaks that could surprise many of us? Tune in to find out....  Cate touches on the risks of buying a future home, and the Trio share some of the mitigants others who find themselves in a similar situation to consider.  One of the three scenarios not only gets our hard working duo to their goals, but enables them to enjoy an even higher passive income. What are some of the tips, tricks and counter-intuitive moves that they had to consider?We wish Rachel and Marcus a wonderful and rewarding journey, and a fabulous future in Venus Bay!  ..... and the gold nuggets!  Cate Bakos's gold nugget: The tiny little decisions that can be made from one scenario to another may not seem significant, but can be very conservative in the long run. The counter-intuitive suggestions can make a huge difference.Dave Johnston's gold nugget: This is a great example of the benefit of creating a property plan. "For anyone who's interested in creating wealth through property, setting a plan will set you a step ahead." Mike Mortlock's gold nugget: Make sure you have income protection insurance and other risk-mitigating insurances. Congrats to our case study couple! Shownotes: https://www.propertytrio.com.au/2024/04/29/listener-questions-moving-to-the-coast-for-a-simpler-life/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMCate kicks off the episode by sharing that the podcast is just a couple of recordings away from it's fifth birthday!Kym is a single mum of two teenage kids, a business owner and her rent on her home has just gone up substantially. Kym has been yearning to get into property ownership for a few years now, but she is facing a few headwinds currently.Dave talks our listeners through some of the hurdles that self employed borrowers face, from financials and timeframes, to heightened scrutiny. He also sheds light on some interesting small business statistics. "Small businesses comprise 97.3% of businesses in the whole nation". Dave steps through the impact that dependants (i.e. children) have on borrowing capacity with some context of a case study.While Mike talks through the high rate of rental increase that Kym is facing. What can a renter do if their rental increase is unfair or unsubstantiated? Tune in to hear...The Trio chat about some of the initiatives available to those who need a bit of assistance with their home buying. From National initiatives to state-based offerings, the Trio chat about each opportunity and consider those that could be helpful for Kym to explore. Shared equity schemes, deposit guarantees, regional opportunities and concessions are some of the items on the discussion table. (See these initiatives in the show notes). We hope Kym finds some of this helpful, and we love the fact that Kym reached out with a question that applies to so many people.For our second listener questions, Claire asks, "What do you do when your financial planner is anti-property?"Dave breaks down some of the key differences between the role of a financial planner and a property planner. The Trio ponder some of the reasons why some financial planners are less than enthusiastic about property as an asset class. Cate has a few possible reasons on her laundry list and she chats with Mike and Dave about some of these reasons."You can't sell a third of a property easily."So, how can investors get the best out of their financial planners, and how can they navigate any perceived negativity about property. The Trio have a few tips to share...... and the gold nuggets! Cate Bakos's gold nugget: "To anyone who's looking to get into the property market and needs a little bit of help.... check out some of the initiatives on offer and familiarise yourself with them."Dave Johnston's gold nugget: Dave expands on his answer for Claire about the role of a property planner versus a financial planner.Mike Mortlock's gold nugget: Look at the 'ad-backs' and make sure your accountant is providing reliable information to your broker.Show notes: https://www.propertytrio.com.au/2024/04/22/listener-questions-single-parent-and-financial-planners-vs-property-planners/

The March 2024 data is out, and Cate concedes she got it wrong with her March data predictions. She's considered the reasons why, and Cate sheds light on a possible reason for this, and it relates to bias.Dave overviews the last twelve months of growth, and he points out that the last year has delivered almost 10% growth for the combined capitals; something very few would have predicted.Cate sheds light on some of the enquiry she's getting, and some of the reasons why investors are turning away from ultra-hot markets. Perth is one example of a hot market, and the Trio explore how much steam remains in the Perth market.Cate recalls a great article from Pete Koulizos in the recent PIPA Newsletter... he believes that Adelaide will continue to perform. Tune in to hear more...Mike segues into rental performance. Median rents as a function of income highlight the expensive cities for tenants. Cate's insights into house versus unit rents is interesting also. Is there a correlation between increased land tax and increasing house rents? Mike explores.Mike dares to broach the question Perth's climbing rents and tight vacancy rates; surely this signals that Perth is not at the top of the cycle.Sales data is showing volumes above the five year average; although the Trio plead with CoreLogic to reinstate listing numbers and agent appraisal activity.Distressed listings are showing an uptick in a few states, however. Are any jungle drums beating in Victoria? Cate delves into the data and asks the hard questions, although Dave wonders if distressed listings paint a picture of the overall health of a given market. Is there a correlation?The Westpac consumer sentiment index isn't showing a dramatically different outlook since last month, but at a state level the indices aren't all aligned. Dave hints at the cities that are showing a more optimistic outlook.Investment lending has increased despite headwinds such as interest rates, additional taxes and onerous rental reforms.This state breakdown of investment activity is intriguing, particularly the disparity between Vic/Tas and the other, hotter states.And... time for our gold nuggets...Cate Bakos's gold nugget: Cate considers how we interpret data, and how bias can be introduced. Dave Johnston's gold nugget: "n order to avoid FOMO, understand the right price point for yourself. Work out your strategy and match up the property location and type to your strategy. Look at the long term when you're making your property decision.Mike Mortlock's gold nugget: "You can't buy the data, you can only buy the property."Shownotes: https://www.propertytrio.com.au/2024/04/15/ep-253-march-market-update/

Dive into a transformative conversation with renowned buyer's agent Cate Bakos on this week's episode. Whether you're navigating your first purchase or aiming to expand your property portfolio, Cate's insights are invaluable for every couple looking to strengthen their financial future together. Don't miss out on this essential listen for anyone serious about mastering the art of property investment!

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMSally is about to purchase her first home. She has a deposit of $300K and is targeting a purchase price of $700K - $800K. Sally wants to live in the home, but is feeling that her borrowing capacity as an owner occupier is holding her back. She asks the Trio whether she should initially purchase as an investor in order to borrow more. Dave breaks down Sally's initial strategy with a few clever questions.Sally is targeting Melbourne and she works in town. She is thinking of living in it for 5-10 years, and then upgrading to a larger family home when the time comes, keeping this initial property as an investment. Five to ten years is a long time though, and Sally is keen to find a property that will be adequate for her for a 5-10 year period. Cate has some thought-provoking ideas for Sally to consider. Cate also talks about tenure, and the importance of buyers making sure they have at least five years of tenure in their plan. Sally has indeed stated that she has done some homework and she's identified that 2BR townhouses and villa units might be the ideal purchase. Cate demystifies villa units and recalls the conversations she had in previous eps with Pete about dwelling description variations around the nation.  Sally has made a deliberate decision to avoid apartments. But.. not all apartments are equal. "There's apartments, and then there are apartments".  Which are the variety that Cate thinks are absolute out-performers? Tune in to find out. Given townhouses aren't all equal, the Trio unpack the various types of townhouses.  Sally notes that the market conditions have changed a bit over the last couple of years in Melbourne.How can Sally best navigate the Melbourne market over the coming months?  Sally circles back to her original suggestion about getting an investment loan for a property that she wants to live in. But as Dave explains, it's not that easy.  How do the banks regulate this?Lastly, Sally is unclear on whether she gets the stamp duty benefits if it's an investment loan. Dave sheds light on some great tips for our loyal listener. .....and the gold nuggets:Cate Bakos's gold nugget: Sally can use the ‘sold' tab on the property search engine to get a great peg in the sand.Dave Johnston's gold nugget: “Make sure you can purchase a property that you can see yourself living in for 5-7, even 10 years. Can you get a better quality asset in a better location, even if it means forgoing stamp duty savings?”Mike Mortlock's gold nugget: Mike congratulates Sally for saving $300,000 for a deposit, and he assures Sally not to worry about Melbourne's slow performance.Shownotes: https://www.propertytrio.com.au/2024/04/08/listener-question-owner-occupier-versus-investor-dilemma/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMFor today's episode, Dave throws it out to Mike... the paper that Mike's business has uncovered relates to growth of rents in units, contrasted to house rental price growth. Median rental growth for units have eclipsed that of houses, but why?The Trio unpack their theories. Are investors pushing rents up or is the supply/demand equation speaking up? Mike hands the wooden spoon to the Victorian Parliament "People always want to be close to the action".Mike ponders the pull of the city. And Cate mentions traffic congestion... is it an issue?  Labour shortage is challenging our economy. As Mike and Dave point out, "Anyone who wants a job, can have one."Cate sheds light on unit performance in Melbourne and the investors who feel disenfranchised. We now have an undersupply issue that has challenged units in Melbourne.But what is Mike's data telling us?  "How is our aging population likely to challenge this data?", asks Dave. Mike shares his thoughts. And why is WA outperforming? The Trio shed light on this outperformance. And our gold nuggets: Dave Johnston's gold nugget: Dave looks forward to the pub!Mike Mortlock's gold nugget: Unit yields may outperform houses. Mike ponders affordability and concludes that units should be considered. Cate Bakos's gold nugget: "There are markets within markets. It's pockets, it's streets, it's orientation. You have to remember to use the data wisely when you have a specific wish list." Show notes: https://www.propertytrio.com.au/2024/04/01/median-rental-gap-between-houses-and-units-closing/

The promise of the investment property that 'pays for itself' is all too common in the property market and all too difficult to locate in practice. Is positive gearing feasible with high rates and low rental yields?  In today's show we cover: Positive gearing - The fading prospect Bad behaviour among buyers advocates Using Federal and State home buyer grants in tandem When advice lets you down  Real estate advisor Cate Bakos joins wealth editor James Kirby in this episode.  See omnystudio.com/listener for privacy information.

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMFor today's episode, the Trio are diving into the sophisticated world of investment borrowing and they'll unpack the nuances of leveraging borrowed funds to not just acquire investment properties, but also to optimise the financial structure surrounding your investment to legally optimise deductions.Despite accountants being tax expertes, they are not mortgage strategists and so it is important that investors understand these strategies and are able to impliment them with their strategic mortgage broker.Whether our listeners are seasoned investors or just starting out, today's masterclass with Dave will equip buyers with the insights to navigate the complex landscape of investment borrowing.Dave launches into the ep with the first tip about investment borrowing. But he confuses Mike about good debt versus bad debt. Cate defines good debt, bad debt and terrible debt!Should buyers try to borrow the full purchase price plus all purchase costs? Surely this could feel alarming for those who are debt averse, but the Trio shed light on when this is a great idea, and why it's so beneficial for investors.  Cate raises the concept of 106% Loan to Value Ratio and Dave distils how this works, and why it's not an uncommon LVR.Why is 80% LVR such a well-versed figure though, and what lender benefits to some professionals get to enjoy in relation to higher LVRs?  "If you read in the media, it's all about the cost you have to save for a deposit, but who really saves 20%?", asks Mike. Good question, Mike. The Trio shed light on the reality of this claim.Is there any reason to set up the investment loan limit for more than the full purchase price plus costs? And when is this a dangerous play? Mike delves a bit deeper... From cash-out policies to drawdown processes, Dave walks our listeners through this complex question.  "The true cost of your interest rate after the tax deduction is cheaper than the cost of your interest on your home loan (as long as you're above the tax free threshold with your earnings." What does Dave mean by this, and why is this so critical to understand in relation to 'good debt'? Which tricky scenarios might fall outside of that general rule of paying interest-only on investment, and P&I on your home loan? Dave has three scenarios, and Cate excitedly recognises that her own personal journey currently fits one of these quirks.  And lastly, Dave has some general advice for listeners who are planning to upgrade their home and retain their old home as an investment. .... and our Gold Nuggets!  Dave Johnston's gold nugget: "If you're getting strategic mortgage advice, make notes." The retention rate of detailed information isn't often compromised, and it's important for borrowers to be clear on their mortgage strategy and set up.Mike Mortlock's gold nugget: Number one rule - investment debt is what you want to maximise, and home loan debt should be minimised. Cate Bakos's gold nugget: Not being afraid of good debt is important. But being aware of the worst kind of debt is also very important too. Unsecured, expensive and short-amortised debt can be problematic. "I highly recommend you talk to a strategic mortgage advisor if you have that kind of debt." Show notes: https://www.propertytrio.com.au/2024/03/25/mortgage-masterclass/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe February 2024 data is out, and the Trio circle the headline; the ridiculously tight vacancy rates nationally. Mike compares houses and unit performance and ponders the drivers for unit purchasers. Dave delves into Perth's outperformance and notes the predictions he and Pete made eighteen months' prior.Is buyer confidence up? Cate sheds light on her own experience at the coalface. But how does data lag impact the figures, and will Cate's prediction match the March data? Only time will tell... What is happening with the regions? For the quarter, combined regions have outperformed the combined cities, but why? The Trio unpack this.Mike dares to broach the question... "Where is Melbourne at?" The Novocastrian dares to challenge the proud Melburnians with this question, but they rise to the challenge and shed light on what is going on in their home city with investors.  And have the regions suffered to the detriment of Melbourne's recovery? Not at all, but Cate explains the dynamics post-COVID. Cate also shares the value-proposition of houses in nearby regions versus apartments in Melbourne's inner-east. Vacancy rates are so tough on tenants right now and the Trio note that vacancies have tightened even further. From changed planning laws to talk of investor incentives, the jungle drums are beating. But sadly the Trio concur that conditions will continue to deteriorate until governments make a different kind of change. Listing activity is higher, yet sales volumes reflect that buyer demand is meeting supply and this coming weekend is set to be a stand-out weekend for auction numbers. But what will post Easter, and early winter look like?"We only need to talk about rate decreases and people go crazy" Rental values have re-accelerated in 2024. Feb recorded the highest rental reading for the last eleven months.Will rent growth outpace capital growth? The Trio weigh in... and they don't all agree.  The three year bonds curve shows that the money markets are predicting three rate reductions as an average cash rate. And... time for our gold nuggets... Cate Bakos's gold nugget: For any prospective tenants out there, you have to be prepared to differentiate yourself in this tight vacancy rate environment.Dave Johnston's gold nugget: This month suggests that so many data points are pointing towards a property price rebound this year, so if you are considering buying property, it's time to get your ducks in a row. Narrow in on your strategy, arrange your pre-approval and be clear on the plan. Shownotes: https://www.propertytrio.com.au/2024/03/18/ep-249-february-market-update/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMDave and Cate man the fort this week while Mike does his charity ride... and the duo decided to tackle a great listener question about lending policy, loan structuring and the critical decisions that arise for many.Jim and his partner have a very important scenario to run past the Trio. They are particularly high income earners with $500,000+ combined incomes, but there are some critical messages here that apply to all home owners and investors. The challenges they face have been exacerbated by increased interest rates, but they also have had second thoughts about the home that they selected in 2019.  The dilemmas are very real... how do Cate and Dave address them?Our listeners chose to buy a house that had less appeal than some of the others that they were missing out on in the lofty hot market of Sydney. Why do people go for the lower hanging fruit? And what are the risks? Dave and Cate share their thoughts, from fatigue to FOMO.  Should they sell and rent-vest, re-purchase in another location, or hold their home? "They need to nail the big rock in the jar, which is where they'd like to live long-term to raise their kids." Dave's ever-pragmatic insights shine through... tune in to hear more.Cate discusses the importance of partners being on the same page as each other, and this is a fantastic case in point in relation to rent-vesting. Rent-vesting is often a particularly challenging strategy for couples and Cate explains why. She also shares a personal experience dating back to 2008 that derailed hers and Ian's rent-vesting strategy.  Jim asks, "Should we purchase a B grade property in an A grade suburb, or an A grade property in a B grade suburb?" Dave and Cate don't necessarily agree, but they each share their answers openly and Cate cites a great recent example.  Dave takes up the challenge to help Jim and his partner with the cashflow challenge. How can they ease the pressure, and what are some of the options? Dave and Cate enjoy a good banter about investment strategy, and in particular, retirement strategy... and this is what it's all about!And lastly, can Jim and his partner achieve $140,000pa passive income? Dave uncovers the answer.  .... and our Gold Nuggets!  Dave Johnston's gold nugget: "If you do plan to purchase a family home, don't put off deciding what that looks like. Start planning for it!" Cate Bakos's gold nugget: "I wish everyone could afford a property plan. If you can get that right from the start, you can establish things from the ground up". And when you're a high income earner, it really does carry some weight. Mike Mortlock's gold nugget: Mike talks about the importance of being quite discerning when it comes to buying the family home, and not compromising on the key element.Show notes: https://www.propertytrio.com.au/2024/03/11/listener-question-dilemma/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMDave hosts this time. He opens the episode with the obvious question, "What is settlement?" Did you know that settlement dates are completely negotiable? And did you know that some people conduct their own conveyancing?, (although the Trio don't recommend this, as it involves a lot of risks and responsibilities.) If you do your own conveyancing, you will need to research what is required and the relevant legislation. Like real estate licences, they are state and territory based. Cate shares some of the challenges associated with cheap, unreliable conveyancers.Physically, how does settlement happen? Cate and Dave weigh in, and Dave explains how settlements hinge firmly around the broker and the banks. Settlement day is a bit of a magical event. Cate talks through the parties who are involved, how long the actual settlement takes, how it's facilitated and how conveyancers conducted settlements before our online portal, PEXA existed.What is an “ideal” settlement day? What does it look like? The Trio canvas the steps and the paperwork required to get to settlement. From legal transfers to 'funds to complete', bank loan documentation certification and pre-settlement inspections. There are many steps that are important in the lead up to settlement day.When are short settlements advantageous? And why would a buyer consider making a short settlement? Cate explains that many buyers think that a shrewd offer with a short settlement is the key to tough negotiating, but sometimes this isn't the best way to drive a good bargain. What can go wrong at settlement? Tune in to find out! What causes delays? Dave and Cate step through a range of issues that can threaten a smooth settlement, from finance to lost titles, to late subdivisions, caveats and lost titles. There are many elements to manage and be aware of when it comes to property settlements.What happens if the purchaser is at fault and can't give the vendor confidence that they can settle? The answer to this question can be quite ugly, but it's important that purchasers appreciate the gravity of the situation when it comes to obtaining finance in time. And let's assume settlement goes to plan.... what are the next steps? Dave steps listeners through the nitty gritty that borrowers should check straight after offset to make sure they are on course with their mortgage strategy and loan facilities. .... and our Gold Nuggets! Mike Mortlock's gold nugget: "Don't do it yourself! And book the truck for the day after settlement!"Cate Bakos's gold nugget: "Make sure you've got a really good checklist! Give us a yell if you'd like a checklist emailed over to you." Shownotes: https://www.propertytrio.com.au/2024/03/04/settlement-day-what-can-go-wrong/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe January 2024 data is out, and the capital city league ladder has been changing. But are houses and unit imbalances across capitals skewing the data? Dave explains.."Data does let us down like that", says Cate and she shares some another example of stock segmentation and purchaser incentives skewing data.What's happening with the regions? The quarterly data shows that regions have outpaced the capitals. Are we seeing a recovery in some of the regions that suffered during 2023 with the reverse-COVID exodus?Mike dares to broach the inflation data and asks his co-hosts when they think interest rates will fall. Dave suggests August/September this year, whereas Cate won't be surprised if it's even in 2025. Time will tell! The national rental index recorded it's strongest monthly rise since April. Could things get worse before they get better? Cate shares her concern about the rate of investor sales and anecdotal evidence from agents' reporting. Cate predicts that rental hikes will eclipse 10% nationally. She also talks about the challenges being tougher for families, as opposed to singles and couples.We have sales volumes to thank for our 2023 year holding up as it did, but now that sales numbers have increased, will the supply and demand ratio threaten capital growth? It seems not. Buyer appetite is strong and sentiment has ticked up somewhat.The stock availability, (or lack thereof) has a direct correlation with capital growth, as shown in our charts in the shownotes.Yet the distressed listings have The Trio intrigued. Is Victoria's data point a green shoot or an anomaly? It's one to watch....The Westpac Consumer Sentiment data provided some good discussion; what a difference the surprise inflation figures made! But which measure still has Cate worried?Cate draws attention to the unsecured lending figures and holds concerns about some of the items that people are financing on high-interest credit.Dave explains how the consumer sentiment index is determined with 50+ sub-groups of people assessed. It's an interesting peek behind the curtain!Investor activity is up and it has been steadily increasing. Despite the investor-led sales, talk of increased rents and the potential for strong capital growth surges are exciting a cohort of investors. The three year bonds show that we could see rates drop in the near-term, yet the ten year bonds suggest that rates could sit at similar levels to where they currently are now.And... time for our gold nuggets... Cate Bakos's gold nugget: Stop spending on discretionary stuff! And better yet, stop using unsecured debt to do it. We need to bring down inflation.Dave Johnston's gold nugget: An interesting fact... House values have continued rising at a faster rate relative to units. House and unit median values are at their greatest differential ever. Mike Mortlock's gold nugget: Don't make it a holiday, make it a toy, and make it second hand.... AND use cash! Shownotes: https://www.propertytrio.com.au/2024/02/19/ep-245-january-market-update/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMIn this innovative, two part series, the Trio canvassed some measures that could be implemented to ease affordability and promote the healthy functioning of the Australian property market.Mike took some inspiration from an industry friend's article, and Cate and Dave chimed in with their thoughts on some of the initiatives from the article. In Part 2, the Trio will cover their own ideas and insights to foster a healthy property market. How do the Trio define a healthy property market? Dave considers the different perspectives from all of the various stakeholders. From developers to renters, first time buyers to investors, NIMBY's, local council, retirees, ... the list is enormous. Cate weighs in with her thoughts on the multiple barriers for acquiring home ownership, in addition to the 'big three'. Our casualised work force, for one is a significant blocker for credit availability for many. Dave cites an insufficient supply of new property.The Trio step through the six innovations in the article, namely; 45 year loan termsPhasing out stamp dutyBalloon paymentsSeparating the 'real risk' from 'robotic risk'Social housing accountability, andSuperannuation, LMIU and Family EquityDave's insights into loan term increases is enlightening and he chats about the historic changes of loan terms over the decades, and also the impact of the scars inflicted from the GFC. He touches on the stigma of longer loan terms, and essentially, borrower mindset."Are all innovations stimulatory?" asks Mike, and he proceeds to cite many examples. Cate shares some of her preferred initiatives that have been devised to assist first home owners, but she also illustrates the failings of past concessions/grants, and poorly considered incentives. Dave boldly tackles the concept of Stamp Duty abolition and proposes some thoughtful ways that the State Governments could maintain the revenue stream. He also touches on the possibilities that superannuation offset accounts could open up. How could balloon payments work? And what are the pitfalls? Dave expands on the possible unintended consequences. ...And our gold nuggets! Cate Bakos's gold nugget: This is a courageous episode, and lots of people have lots of different ideas on this. What is important is that people in this industry who do care about housing feel like they are in a safe space to speak up.Mike Mortlock's gold nugget: "We require a national debate on this." The politicians have had their opportunity and they have had quite a few fancy ideas that have exacerbated some of the issues. "Investors are part of the solution." David Johnston's gold nugget: "Send us your thought on what you think will make a difference to creating a healthy property market for all participants. Show notes: https://www.propertytrio.com.au/2024/02/12/tackling-housing-affordability-part-one/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThis week's episode features a two great listener questions, the first from Catherine."My husband (39) and I (32) are doing well financially and trying to decide our next move. Our goal is to pay off our mortgage but we feel like maybe we should be buying an investment property. In SA western suburbs, our house is worth around $900k and our mortgage is sitting at $290k. We have a spare $3000 monthly (after bills and allowances) that we are putting on our mortgage. If we buy an investment property it will be negatively geared but we aren't sure whether it is worth buying now as we will have to contribute to repayments. To buy a house with some land in a decent area is around $600-700k+. Will the tax deductions be worth it or should we wait and keep smashing our mortgage, pay it off in 5 years?" Many people feel compelled to pay down debt, but this isn't necessarily the optimal way to build future wealth. The Trio share their individual thoughts around Catherine's dilemma, explaining leveraging, setting financial goals and discussing the positives of good debt. Dave also includes a scenario to illustrate the potential in store for Catherine and her husband. Dave acknowledges the strain and subjectivity of such a personal decision. Debt aversion can strike many, and as he points out, understanding our surplus cash flow is a critical step to getting it right. The scenario Dave cites is modest, and the modelled outcome spells a $500,000 superior net asset position for our listener couple. Our second listener question challenges the use of the Land to Asset Ratio as a metric. Lennard's musings are plentiful and Cate, Dave and Mike tackle each one. If capital growth is maximised by a higher Land to Asset Ratio, why wouldn't an investor just buy land? And is a million dollar farm in the outback a better investment than a small parcel of land in a blue chip, city suburb? And how do you quantify the exact land to asset ratio metric? Lennard's questions are probing and they keep the trio on their toes.They canvas the difference between capital growth returns, rental returns and tax returns. Each also offer examples to help explain the ways in which a Land to Asset Ratio metric can be a helpful measure. Dave tackles Lennard's question about how a buyer could attribute a value to both the land and the dwelling components of a property. He points out that it's not an exacting science. When can dwellings appreciate? Dave takes up the challenge and faces it head on, citing scarcity, inflation and maintenance. Mike chimes in with the term "functional obsolescence" and he illustrates depreciation. Land to Asset Ratio is not static, and nor is there an optimal ratio. It's important for investors to recognise where their own tolerance comfortably sits. ....And our gold nuggets! Cate Bakos's gold nugget - Due diligence counts for so much, and it goes way beyond Land to Asset Ratio calculations.Mike Mortlock's gold nugget - Value drops and depreciation are two very different concepts. Dave Johnston's gold nugget - Land to asset ratio is just one factor when assessing the future capital growth prospects of a property. It is not a valuation methodology at all. Show Notes: https://www.propertytrio.com.au/2024/02/05/building-long-term-wealth-and-mastering-land-to-asset-ratio/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe December data is out, albeit in parts after the Core Logic team put out a thinner report over the break. Dave points out that December represented the smallest gain in property growth and he ponders whether the most recent interest rate increase triggered a slowdown at year end.Dave also draws our attention to the 'tale of two cities', and the two-speed property economy between the mining states and the non-mining states. Cate questions the relationship between listing activity and growth rates. Is there a correlation? And are we back to the good ol' days when it comes to the summer break and the property industry shutdown?What's happening with the regions? Dave and Cate shed light on some of the elastic behaviours in certain regions. Mike shares his press release story about the national rental crisis with the listeners... tune in to hear more.Was the December rental figure a data blip, or has the rental demand started to ease? Cate demystifies things for our listeners.Gross rental yields have ticked up to new levels, but as Dave explains, "that's what they used to look like!" Like many other property-related cycles, rental yield, too is cyclic. Are we expecting a busy listing period over the coming months? Cate shares some coal face intel and some insights into buyer activity currently.What is the Westpac Consumer Sentiment Index telling us? Have the interest rate increases finally bitten hard? And what direction does the Trio think rate movements will take over the coming months/year? And Mike asks Dave for some business insights into borrower activity; it's an intriguing overview and it ties in with the data.Lastly, Cate draws attention to the construction challenges being faced now. And... time for our gold nuggets... Cate Bakos's gold nugget: For all those people who are planning on purchasing sub-median priced property in early 2024, stay close to the agents as ex-rental stock emergesDave Johnston's gold nugget: Dave emphasis the need to make your own personal decisions based on your own economy. Show notes:https://www.propertytrio.com.au/2024/01/29/ep-242-december-market-update/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMPete joins us in the studio! Mike kicks off the Trio's predictions for 2023 and he runs through their January predictions, holding each accountable for their forecasts. What will the market do? Cate admits she was quite bullish on this question, while Dave thought prices would drop 5-8%. It was the Property Professor who got this prediction right. Which capital cities will be the top performers? According to Mike, the Trio all got this one right in identifying Perth as a top performer. Cate concedes though that Melbourne demonstrated resilience, as opposed to a bounce-back, and she points out that none of them picked Brisbane. And Pete sheds light on some fundamental reasons why Perth was so popular for eastern states investors. How will the regions perform? With hybrid office working environments, things are changing now, but what will the larger regions do in the short term? Who got it right? And what is in store for office spaces? ...Tune in to find out.Investor numbers: What did the Trio underestimate? How has credit policy played a role? And how did tax legislation changes impact investor activity? The Trio ponder.What government intervention could impact the property market? Each of the Trio had a good point, but who got it the 'most' right?Developers and building - what did the Trio think would be in store for 2023? Why could we see private builders ease their pricing? Does Cate have a valid theory? And Mike sheds some light on the challenges today for volume builders... and it's insightful. Pete adds his insights on the current building pipeline and Dave discusses supply chain woes. Dave was determined the deserved winner of this prediction. Where will interest rates land at the end of 2023? The Trio concede defeat!Rents and vacancy rates - where would they end up at the end of 2023? Cate and Pete took out top marks for this prediction: "Record increase in asking rents for 2023. It will shadow 2022, we're not getting more stock, we're getting more people. With interest rate increases, some people who were looking at purchasing might be looking at renting instead."Where did the Trio peg listing and sales volumes by year end 2023? Full marks to Dave! "We'll see it around the 5 year average this year, first 6 months will be flat, but pick up in the back half of the year.And what risks did they anticipate could impact the market? From recession to higher unemployment, war/invasion and share market corrections, the Trio canvas some of the possibilities.Lastly....where did the Trio think inflation would head? Pete speaks candidly about the practicality of reading inflation charts. But did Dave and Cate get it right? Or were they one year too early with their predictions? ....And our gold nuggets! Peter Koulizos's gold nugget: Borrow as much as you can to buy as much as you can, and hold on for as long as you can!Cate Bakos's gold nugget: The differences of opinion between the Trio is what makes the show interesting, but it also sheds light on the importance of noting different economists' points of view. We pride ourselves on being fiercely independent. Shoe notes: https://www.propertytrio.com.au/2024/01/22/2023-predictions-unpacked/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThis week's episode features a great listener question from Ben."Offset account question I am grappling with. I am nearing retirement and have three investment properties in NE Melbourne, two of which are IO and fully offset. Third is IO and partially offset. I have a PPOR P&I loan with and offset account set up. I continually go round the conundrum of whether to park my funds offset against investment IO loans or the PPOR P&I loan. I fully understand the extra cash flow I get by not paying interest on the IO loans, and effectively have the rent as income (taxable). And offsetting P&I PPOR actually makes no difference to my P&L unless I do something downstream - sell or refinance. Any thoughts?" Cate offers the layman's view on Ben's predicament.Can Ben have his cake and eat it too? Dave would suggest that Ben 100% offsets his home loan first, and then he would target placing his surplus funds into the highest interest rate investment loan offset account. Switching his home loan to Interest Only is another good option. Mike prompts Dave with a question: "What stages of life do you typically see your clients facing this conundrum?" Cate weighs in with some insights based on recent economic and banking changes, relating Ben's conundrum to some of her client's questions. When APRA stepped in, requiring banks to set home loan rates lower than investment rates, things started to change for a few investors. Tune in to hear more...Cate's simple solution hinges around refinancing his home loan to Interest Only, but is it that easy? Dave weighs in with some of the challenges Ben may face. Dave has a technical solution, but it's not easy and will require some intense concentration!Mike ponders; can refinancing the existing debt to reduce the minimum loan repayment commitment help Ben's case? Cate and Dave step through the pro's and cons of the various approaches on option to Ben, highlighting the tax benefits, interest rate differential and long-term benefits. And the Trio shed light on the benefits of offset against Principal and Interest loans....And our gold nuggests! Dave Johnston's gold nugget - If Ben can't refinance and can't go to IO, Dave highlights the important points for Ben to consider. Sometimes going backwards from a cashflow perspective isn't always the worst case scenario. Looking forward, doing the maths and not losing sight of the bigger picture is important.Cate Bakos's gold nugget - Visibility is everything. If Ben has a dashboard and can get a sense of timeframes, he will get a better sense of perspective. His overall portfolio will likely hold him in good stead, but in the meantime he could do a stocktake of his current discretionary spending, and conduct a health check on his current home loans. Mike Mortlock's gold nugget - There is no simple answer, but there are a number of ways that he can do this. Knowing what the banks will allow is important too. Show notes: https://www.propertytrio.com.au/2024/01/08/can-we-retire-at-50-and-how-many-properties-will-we-need-2/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMHappy New Year to our listeners! Mike introduces James and Lisa's case study. They are both 36 and have a goal of attaining $80,000 of passive income per year into retirement, and scaling back work to 50% by the age of 50 remains an ideal. Their annual combined incomes are $144,000 and they have $90,000 in savings. Can it be done? And what do they need to compromise on to reach their goal? Cate ponders their plans and discusses the cost disparity between life in the major capitals versus the regions. She also touches on 'overshooting the runway'; a common pleasant surprise for those who make firm plans early in life. Dave explains how he and his team would typically tackle the determination of subsequent property purchases, timing, budget and buffers. How did James and Lisa's property plan compare to other plans? Tune in to find out what scenario Dave's team recommended to this duo. Do they purchase an investment first? Do they move to their ideal future home location? How many properties do they ultimately need? The alternative options for James and Lisa are an interesting surprise!Mike and Cate tackle the investment-future use conundrum; a common investor challenge that the Trio see often. And Dave makes a valid point about the differential in post-retirement outcomes when sensible financial decisions are made at the start of an investor's journey. It's little wonder that compound interest is considered the eighth wonder of the world. ....And our gold suggests! Cate Bakos's gold nugget - Retirement is not what it used to be. We don't just stop. We have much longer retirements these days and we do have to think about how we wish to enjoy our segments of retirement, well before the 'golden years'.Dave Johnston's gold nugget - When modelling out a property plan, setting pathways and determining if a goal is achievable is critical. Decision-making often has to face adjustment as life changes. Show Notes: https://www.propertytrio.com.au/2024/01/01/can-we-retire-at-50-and-how-many-properties-will-we-need/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM Merry Christmas to our listeners! AI's Role in Real Estate Investment..."AI, and particularly generative AI, is a game-changer in real estate investment, even for the average Australian investor."Mike and Dave explore some of the immediate scope that AI can offer, from generating realistic property images, to creating detailed market reports, and even forecasting future property value trends based on a range of complex factors. Understanding Generative AI vs. Traditional Machine Learning....Mike ponders the power of capturing a series of ‘photographic memories', and details how AI has aided him with his quantity surveying data and identification of trends. Moving forward, can AI predict sentiment? It's an interesting thought-experiment. Dave contrasts the take-up of Chat GPT against other advancements such as the World Wide Web, Facebook, and the telephone. How does AI already exist in the property world? The Trio ponder… Mike shares some of the practical applications of generative AI for investors“These AI tools are user-friendly and are designed with the layperson in mind. They can analyse your financial goals and suggest investment strategies, almost like having a personal investment advisor powered by AI." But Dave reminds listeners that information found on the internet shouldn't be blindly trusted. Cate talks about the risks to businesses when it comes to AI mistakes.Can AI predict an outperformance property? Or is this a task that requires human touch? Tune in to find out what the Trio each think. Cate shares the last paragraph of the episode, which was generated by AI: “AI, and specifically generative AI, is transforming how Australians invest in real estate. It's making sophisticated investment analysis more accessible to everyone." ....And our gold suggests! Dave Johnston's gold nugget - Dave ponders the limitations and contradictions associated with AI predicting the best property in the country.Mike Mortlock's gold nugget - Mike points out that many price models models and capital growth predictions are often wrong, and he wonders how AI will tackle irrational human behaviour. Cate Bakos's gold nugget - Cate challenges the usefulness of chat boxes and scripts when it comes to disingenuous scripting and important client communication.Show notes: https://www.propertytrio.com.au/2023/12/24/ai-the-future-of-property-investment/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe November data is out! The headline figures prove that the 'middle sized cities' are still out-performing; Perth, Adelaide and Brisbane. And Melbourne disappointed with the first negative month in a while.We have seen a new peak in house prices in Australia and for the combined capitals; we have seen a new record high for house prices. Cate and Mike marvel at the volatility, and in particular the disproportionate declines that our markets have experienced in recent years. And Dave pulls apart the weaknesses in median prices when it comes to data segmentation associated with houses versus units.Have the Victorian regions bounced back? Maybe. But how does wage price index correlate? "If you want a job, work from home. if you want a career, come back to the office." Do you agree with this quote? And how has WFH impacted Australian property?Cate delves into investor-led sales and how the segmented data is captured. And she asks when policy makers will recognise the rate of investor sales. The Trio focus on rental increases and vacancy rates; despite the rate of growth relaxing, rental growth is still broadly in positive territory for most cities. And when we consider our new arrivals, and policy around skills, it's questionable that our services-inflation woes are being accurately addressed. Mike asks Cate about new listings, and she points out a few points of interest in relation to the relationship between new listings and buyer demand. Cate talks about the impact of the most recent cash rate increase and the typical hallmarks of December market conditions. Mike steers us through the Westpac Consumer Sentiment Index. There have been a few subtle changes, and the Trio attempt to understand the broad attitudes towards timing the market and economic outlook. Personal, unsecured loans have tricked up and Cate is troubled. Tune in to hear more... And Dave covers loan approvals, mortgages and decreasing refinancing numbers. Dave reports that this is the lowest read since May 2022. Lastly, Cate and Dave touch on Sydney vs Melbourne price disparity and some of the reasons why Sydneysiders are taking advantage of the Melbourne market. And... time for our gold nuggets... Cate Bakos's gold nugget: For all of those budding purchasers who are focusing on 2024 as their year... take advantage of the buying conditions in the early part of the year. Agents are talking about increased listing volumes and the supply/demand ratio may favour buyers. Dave Johnston's gold nugget: Dave emphasis the attractive conditions that buyers could face in Melbourne, Sydney and Darwin in the early months of 2024. Show notes: https://www.propertytrio.com.au/2023/12/18/ep-236-november-market-update/

Cate Bakos has had her fair share of ups and downs throughout her property investment journey. But what sets her apart is her ability to quickly analyse, break down, and learn from these erroneous decisions.As a recipient of Sterling Publishing's ‘high commendation', a finalist for Telstra's Business Woman of the Year, and a National Winner of the Buyer's Agent of the Year, Bakos has proved the worth of these critical lessons.In this podcast Cate Bakos and host Tyrone Shum will discuss the lessons learnt throughout her journey, and how you can use her experiences to improve your own portfolio choices. Hosted on Acast. See acast.com/privacy for more information.

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMA lovely listener, Zak has written in to the the Trio. He and his partner have worked hard as young professionals and have acquired two properties; each with high 80's LVRs. One is a boutique apartment in Melbourne's leafy inner south/east, and the other is a character brick house in beautiful pocket of Ballarat. But despite their strong incomes and dedication to their financial goals, their borrowing capacity has precluded them from further investing for now. The question he has is, "how is it that some individuals (often in their early to mid thirties) are able to amass large portfolios of (say) 10+ properties?"Can it really be done, or is it a mirage?The Trio enjoy unpacking this one. Dave starts with some possible explanations for how these young multi-property portfolio investors manage it, and he also shares some interesting data direct from the ATO about the percentage of multi-property investors. Scarce indeed!"Let's talk about the psyche of someone who wants ten-plus properties". Cate sheds light on what drove her to pursue a quick succession of investment property purchases when she was younger. Mike leads the conversation around ego-metrics too.The Trio challenge some of the mirages out there that investors claim as 'investments', and Cate talks about the headache factor of a large portfolio, particularly when she considers upkeep on interstate holdings.Mike challenges Dave to share some of the alternative financing sources that our listener duo could consider to break past their borrowing capacity constraint. Dave delves into cashflow and buffers, and he talks about risk and where it is relevant when it comes to multi-property investors.Dave and Cate agree on one key ingredient that can certainly optimise an investor's chances of attaining a multi-property portfolio... and it's time.Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Forget the white noise! Just stick to the simple stuff. There's no tricks. Set a plan based on what you want your retirement to look like.Dave Johnston's gold nugget: Work out how much passive income you need for retirement (in rent), work out the total property value you are aiming to purchase, and consider the number of properties that this represents. Shut out the superfluous noise and don't worry about what others are investing in.Cate Bakos's gold nugget: Time is your best ingredient, so don't sit around waiting to jump into property. When you can, you should.Show notes: https://www.propertytrio.com.au/2023/12/11/unravelling-the-mystery-of-how-investors-amass-ten-plus-properties/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMWhat does it take to become a great strategic mortgage broker?"You need to listen with intent", says Dave. There is so much more to effective mortgage broking than just having a good grasp of numbers and a sharp recall of loan products.The most successful professional advisors ask seven times more questions than the average advisor.Cate weighs in with a comment about how a good advisor can deliver an answer. She also talks about the privilege of being a trusted advisor. And Cate doesn't worry about scripts and dialogue. It's all about listening and asking the right questions.The ability to notice body language and the EQ required in a role like this is intriguing. Tune in to hear more!Why is mortgage strategy so much more important than rate? Dave runs our listeners through all of the important considerations in the mortgage strategy.What are some of the technical skills required to be a SMB (strategic mortgage broker)?Mike challenges Dave about the Royal Commission and the change in legislation for Responsible Lending. Dave sets the record straight! And he shares some good stats too. Cate and Dave discuss the broker commissions and the practical reasons why SMB's maintain good, ongoing relationships with their clients.Dave and Mike discuss the processes required to mitigate the consumer's risk when it comes to deposits and settlements. Deadlines and clauses govern a lot of tasks, and attention to detail is critical. Dave shares some of the worst case scenarios.Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Mike recalls witnessing mortgage brokers and accountants arguing about add-backs and servicing calculations. This early awakening showed Mike the value of a good quality mortgage broker.Dave Johnston's gold nugget: Dave reminds listeners that he has hardly mentioned interest rates in this episode. Strategic mortgage broking goes so much beyond rate.Cate Bakos's gold nugget: "If you win them on rate, you'll lose them on rate". Cate relays an important message about the importance of looking beyond offering the cheapest rate.Show notes: https://www.propertytrio.com.au/2023/12/04/unveiling-the-secrets-of-elite-strategic-mortgage-brokers/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMCate talks candidly about buyer's agency and how she found her way into this space. Is a university degree essential? Important? And what other past experiences help a BA on their journey? Tune in to find out.Mike also speaks about some of the impressive BA's he's met and interviewed, and he considers the importance of analytical skills, soft-skills and diverse backgrounds. The Trio ponder the challenges of adapting to BA-life. From long/late hours to liability, deadlines to negotiation pressure, the role is nothing short of dull. As Mike says, "It's nowhere near as glamorous as it seems."What extra skills can give BA's an edge? Great question, Dave. The Trio move on to buyer's agency training."It's not the piece of paper you want, it's the knowledge." Cate shares her thoughts on some of the pathways that BA's can learn. She also talks about specific past roles that will be complementary for aspiring BA's.The Trio tackle the training backgrounds and previous jobs that can be problematic for new BA's. Can leopards change their spots? It's an interesting debate.Cate shares a short experience she had when she was in 'gardening leave' in a government organisation and she draws upon the disparity between that role and the world she works in.And Mike reminds Cate that she was a rubbish dining companion when her clients called during a work dinner. Dave dares to ask Cate about some of the short courses available that concern her. Tune in to hear more! Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Mike splits his answer into two. For aspiring BA's, they really need to take the training seriously. He cautions people to do a lot of research. And for consumers who are looking to select a buyer's agent; put a great checklist together and be prepared to quiz them hard.Dave Johnston's gold nugget: Dave feels consumers should ask for a BA with at least two years' experience in a BA firm. Cate Bakos's gold nugget: #askforexperience Shownotes: https://www.propertytrio.com.au/2023/11/27/becoming-a-buyers-advocate/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMMike has prepared some industry-first data and the Trio deep-dive into it for our listeners this week.Dave's overview of this special city spans it's impressive performance of late, and the uniqueness of Perth when it comes to the house to unit ratio. Mike also weighs in with some interesting history about WA's quest for independence. 66% of Western Australians voted to leave the commonwealth in a 1931 referendum, but for technical reasons, the vote didn't initiate change. The mineral wealth stands WA disproportionately from other states in terms of federal funds allocated per state and territory, and Dave delves into the state budget and the revenue generated by WA. With WA accounting for half of the nation's exports, this important statistic is very telling when it comes to understanding what drivers influence markets.Mike's data compared Q1 2022 to Q1 2023 and found that WA had moved from the 4th most popular state for investors to 2nd in that 12 months. In real terms, it was a 22.49% change in favour of WA with every state except the ACT declining in favour over that period. WA represented 9.38% of all residential investor activity in Q1 2022, and jumped to a whopping 22.49% in Q1 2023 second only to QLD at 37.97%. Despite this recent renaissance, Cate reminds listeners that for the 14-year period starting 2007 to the end of 2020, the Perth property market essentially stayed flat. At the start of 2007 Perth had the highest median house value of Australia's eight capitals, and at the end of the next 168 months, it went nowhere, while house values actually doubled in Sydney. Mike's insights into population changes are fascinating.. tune in to find out! Reading the iron ore crystal ball is no mean feat, but Dave shares his outlook. The Trio share their concerns for investors who are rushing in without understanding the volatility and drivers of a market like Perth. Timing the entry and exit is never an easy thing to do. As Dave points out, an over-reliance on mining is a risk.Lastly, our gold nuggets…… Mike Mortlock's gold nugget: It's important to be heavily researched on the location as best you can. Thinking about resale and retirement should be a key consideration also.Dave Johnston's gold nugget: "The most important economy to be across is your own economy. Ultimately you need to make decisions that are right for you." Cate Bakos's gold nugget: The tyranny of distance needs to be factored in to any investor's interstate purchase decisions. Long term buy and hold plans need to be consider the maintenance burden that long distance renovating can create.Show notes: https://www.propertytrio.com.au/2023/11/20/perth-property-gold-rush/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe October data has Perth leading the chart, but as Dave reports, the mid-sized capitals are the capitals that are showing us the strongest results. There is a correlation between growth and listing rates though.Listings have jumped in Spring for Sydney and Melbourne, supporting Dave's correlation theory. Cate identifies data integrity issues, citing Hobart's data as an example. All it would take is a disproportionate number of listings at either end of the market to skew a data set in a city as tight as Hobart.The Trio ponder foreign buyer disincentives and taxes, in particular the impact on Australia with other countries applying new taxes and restrictions. Dave notes the rate of immigration Australia is currently experiencing and notes that it's at an all-time high, hence putting additional pressure on housing. Yet, as Cate says, we need more people in this high inflationary environment to assist with providing services. Such a difficult balance!Are the mid-cities thriving because they are more affordable right now? And what impact is the return to the city by the tree-changers and sea-changers having on the data? Cate explains... Cate shares some insights into investor-led sales, and she also talks about which buyers are soaking up these investor sales. Check out our Resources below for more. No real respite in store for renters in most cities, unfortunately. The Trio note that the vacancy rates are as low as they've seen in their time. At this stage, there is no real stimulus on the horizon that is likely to change this issue for renters. Dave cites some scary stats. But as Cate points out, household formation rates may return to former levels as house-sharers re-band, young adults move back 'home', and singles re-partner.Listing activity is up nationally, but the Trio discuss the drivers for this, the differential compared to past years, and the overall resilience of the market.Mike wonders whether the number of Perth sales could be initiated by vendors who have been practising Loss Aversion. Are they happy to sell, now that values have finally returned? And the opposite of Loss Aversion is a Distressed Sale Cate and Dave point out the fact that the states that the media report are 'in crisis' are not showing large numbers of distressed sales, relative to total listings.In Mike's words, "Media beat-up?" Maybe. Total housing lending fell 7.8%, but it's still 1.5% higher than a year ago. The 'mortgage wars' we saw in past months are not quite as rampant as they were. Dave proposes we'll see some competition in refinances.Will APRA bring down the buffer? Tune in to hear Dave's thoughts....And... time for our gold nuggets... Cate Bakos's gold nugget: New listing activity for the remainder of the year..... most markets slow down for Christmas break. So, for anyone who is thinking that 2023 has a few exciting listings to come out; we only have a couple of week's new listings remaining.Dave Johnston's gold nugget: It's a good buying time in Melbourne and Sydney with rising stock levels. Dave feels that this 'purple patch' opportunity for buyers will continue. Show Notes: https://www.propertytrio.com.au/2023/11/13/ep-231-october-market-update/

Got a question for the trio? https://forms.com//form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMA great listener question prompts today's show. Sam writes;"We brought our 4 bed 2 bath mid century family in Greensborough area in mid 2021 for 1 mil approx. Since then the price has fallen then risen, and generic real estate apps pricing it at around the same value. The house is older style, has good bones but over time we would love to undertake a moderate renovation. The property is in a good family friendly/school zone, and with the right modifications there is immediate reasons to move from this property. We are getting close to 80%LVR, which I understand is a threshold for accessing finance. The original plan was to build our plan out with two more 600k investment properties."From accessing equity to balancing investing versus renovating, Sam has a handful of great questions for The Trio.Dave unpacks the question about unleashing equity."Cash-Out" loans are something they could consider, and as Dave explains, equity access isn't limited to those borrowers who need to stretch to 90% loan to value levels. The question of mortgage insurance is an interesting one, and both Cate and Dave share some interesting insights, along with some exciting new loan products to suit today's market. The mechanics of accessing equity can vary. Dave explains how investors can sensibly approach this task, from examples, process steps, and timeframe expectations. The important point Dave makes relates to renovations, though. And how many listeners have heard of "as-if complete" valuations? Dave and Mike share some special tips.Investment versus lifestyle conundrum is something that strikes often, and Dave works through some of the questions that investors need to think through. Cate debates where she would invest the money.Cash-outs versus progressive drawdowns... Dave walks our listeners through some of the options. And is there a magic number for LVR's and equity access? Tune in to find out.Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Identifying the strategy is essential. "Ruthlessly efficient decisions!" And Mike shares "SIC Building syndrome".... something to google!Dave Johnston's gold nugget: Some situations warrant a good property plan, and Sam's questions could constitute this. Informed and educated decisions are the best decisions.Cate Bakos's gold nugget: CMA's are just automated valuation tools that can sometimes get things horribly wrong. Algorithms can't always recognise important factors. Getting a proper appraisal with some science backing the data up is a great approach when working out what a property is genuinely worth. Show notes: https://www.propertytrio.com.au/2023/11/06/listener-question-renovate-or-invest/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMCate kicks off the episode with some quirky title types that can be sometimes found for apartments. Particularly when considering an Art Deco era apartment, buyers need to brace themselves for Company Share and Stratum titles. They are generally cheaper products, but they come with danger for some borrowers. Cate explains the differences between these types and she expands on why buyers need to exercise caution when deposit funds on hand are less than 40%.Can Stratum and Company Share be converted to Strata? Yes, indeed they can, but it's not always straight forward and it's often more than the mere cost of the legal fees and the subdivision.Dave discusses the options that buyers have when it comes to lending policy restrictions for apartments. Small apartments can wreak havoc for some borrowers, as can apartments with commercial zoning. Dave ponders whether zoning will be altered for office spaces that are being converted to residential products. Mike's high rise apartment case study is alarming; and it goes to show how rules can be changed within a development. Owning an apartment in a complex is nothing short of complex! Cate talks about the elephant in the room; strata fees for off the plan apartments. It's a must-listen! Dave opens Pandora's Box when he asks Cate about the risks of high rise, high density properties. From cladding issues to to Air BnB issues, car stackers, special levies and location woes, Cate drags out her laundry list. Cate details what it is she loves about boutique blocks. The list is broad, but downsides do exist. Tune in to find out! And... what do you do if pets aren't allowed in an apartment block? Lastly, our gold nuggets…… Mike Mortlock's gold nugget: Too many investors think that low strata fees are attractive, but they need to think about their sinking fund schedule and the long term cost of ignoring important things. Cate Bakos's gold nugget: Cate also chats about low strata fees. It's a bit of a Goldilocks conundrum. Too low, or too high... there is a sweet spot when it comes to strata fees.Show notes: https://www.propertytrio.com.au/2023/10/30/all-things-apartments-part-2/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe Trio kick off this exciting ep by defining where apartments sit in the unit subset, and Dave shares with the listeners his favoured types of apartments. Some of Dave's criterion paves the way for a high-scoring gem... he shares some valuable must-haves and nice-to-haves. Highly sought-after, great allure, attractive land to asset ratio and unbeatable locations! Dave shares some startling facts about the recent historical capital growth performance of apartments versus houses. Core Logic did a study in August 2022 for the last thirty years across the two data sets. While the data showed that combined capitals exhibited 450% growth for houses, while units only clocked 307%, and for regions the house data set tracked 314%, and units, 213%. Cate discusses some of the reasons for this relative underperformance and she also chats about the mistakes that some have made in the past when they were aligned to one geographic base and ignored other gentrifying options with strong growth drivers. As Mike says, "Blue chip or bust? It doesn't make sense. Their model doesn't have flexibility." Will the older style apartments bounce back? Only time will tell, but Cate discusses the 'apartment renaissance' that she's noticed of late, particularly with an aging population. Mike cracks into the 1,000 Assets Study, specifically a trip down memory lane since 2016. Initially 47% of their investor study were purchasing units. Into 2018/2019, it dropped to 40%, and following this, a huge drop-off surprised Mike, with a recent figure of 18% recorded. Mike puts this down to a few factors, including the pandemic, horrific building defects and cladding issues, and the evolution of investor education. This, coupled with the increasing number of units per building has translated into heightened apartment avoidance for many investors.Unit complexes are getting bigger and the average count of apartments per building has risen from 61 to 110 over this period. Buyers do tend to red flag huge developments, particularly of late. "Your job is to help them grow wealth, not to save them tax" is one of Cate's sayings when it comes to accountants recommending new properties. Cate shares some of the common reasons why buyers have been more fearful about some apartment subsets in recent years. From off the plan risks to lender appetites, there are a few alarm bells that listeners should pay attention to.But the Trio talk about some of the positive changes they've seen across developments and designs of late. Cate talks about the elephant in the room; strata fees and expensive special levies. It's a must-listen!And Mike treats our listeners to a chapter on the Rental Loss Index and their subsequent study. From oversupply to high vacancy rates, this insight is particularly powerful for investor insight. And our gold nuggets……Cate Bakos's gold nugget: Cate takes a leaf out of the Property Professor's handbook. She urges investors not to purchase off the plan, high-rise apartments.Mike Mortlock's gold nugget: Mike reminds listeners that not all units are bad! They can also have a decent Land to Asset Ratio. Show Notes: https://www.propertytrio.com.au/2023/10/23/all-things-apartments-part-2/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe September data throws us a few mixed bag items!Dave shares his takeaway: listing levels and an interesting correlation. Cate identifies the eighth consecutive month of national price growth, and she draws listener attention to capital cities versus the regions. The Trio ponder the power of commuting distance to major cities.Is there a sweet spot ratio when it comes to listing volumes and price movement? Mike ponders... tune in to find out.What's happening with rents? And why is the pace of growth easing in so many cities? Household formation rates are changing and this is having an impact on rental growth. Cate shares a bit of insight into a recent journalist interview about this very topic. She also talks about the specific challenges within the rental market when it comes to families.On a related topic, Dave points out the pre-COVID, post-COVID and historical average rental vacancy rates and it's a particularly telling reflection. The Trio canvas the pace of this change and contrast today's yields to past decades. Things have evolved remarkably for investors over the past decade."Time is your most powerful ingredient when it comes to yield", says Cate.Cate shares a Core Logic chart with Mike and Dave; it illustrates the importance of looking longer term at any city's performance. Both Perth and Hobart demonstrate opposing performances when 12 month versus ten year charts are contrasted. Some cities and regions are particularly cyclic and investors need to be aware of this.And finally, consumer sentiment; as Mike says "there's green shoots!" The major household item figures have notched back up above last month's dip. Have four consecutive months of holding rates contributed to a greater willingness to spend again? Dave has some great state-based figures to cite also.Housing finance is an interesting chart to ponder. Mike and Dave debate the impact of rates on hold, and Dave points out that the mix of owner occupiers to investors remains quite the same as recent historical levels. Importantly, he points out reductions in building costs.Related to decreasing costs, Cate includes the Freightos Baltic index in this monthly update.Dave and Cate pick out some of their most noteworthy segments from the September data... Listen in to hear what each spotted. Dave notes core inflation was down, yet headline inflation increased. This suggests that the markets could be anticipating another rate rise. What is this attributable to? Services, insurances and transport are among a few. Services inflation remains an inflationary problem. And... time for our gold nuggets... Cate Bakos's gold nugget: Cate shares context around the Freightos Baltic index; a whopping 62% reduction this week, compared to the same week a year ago.Dave Johnston's gold nugget: We're likely to hit our record market high again within a month or so based on the data and the rate of growth through 2023. Show notes: https://www.propertytrio.com.au/2023/10/16/ep-227-september-market-update/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMThe Trio enjoy fielding this second question from a loyal, long time listener, Alison. Only last year, Alison reached out to ask the Trio to weigh in on a stay/move question. Alison and her daughter were living in a recent purchase on the inner-side of Melbourne's Nepean Hwy, but missed their days by the beach in their former home. Alison had purchased a four bedroom townhouse on 'the other side', but aside from missing her beach life, she also found the home was too big for their needs.The Trio encouraged her to make the move back to their old stomping ground, and Cate recalled some of her happy days in her old 'hood in beachside Mentone too. Alison, now 47, took the plunge this year. She rented out the four bedroom townhouse and purchased a three bedroom unit back on the beach side of Mentone.This time, she writes to the Trio to ask about their thoughts on whether she should retain the four bedroom townhouse, or whether she should sell. With all of the changes to land tax and possible changes to planning laws, ongoing rental reforms and heftier interest rates, Alison is feeling a little bit nervous and wondering what the Trio think. She notes that her large townhouse is projected to be cashflow neutral in six years, but she is also mindful of the pressure she faces as a sole bread-winner. She is also managing a property in the Bass Coast and while her long term intention is to retain this property into retirement, Alison throws out the question to the team about her entire portfolio. "Do I hang on to the 4 bedder and wait until it has enough value to clear my ppr mortgage? Or should I hang on to it for the longer term- past 6 years until it is earning me money? I know it won't be for a long time." First and foremost, the Trio congratulate Alison on her achievements and in particular, her ability to pivot quickly. According to the Australian Landlords Association, landlords own more than 80% of rental properties. Despite this significant contribution, it often feels like landlords are somewhat overlooked (and in some cases, trampled on) in discussions focusing on the challenges facing renters. Dave starts with Alison's property planning and shares some astounding projections. Alison currently owns $2.92 million worth of property at age 47. If Alison is able to hold onto these assets over a long term growth rate of 5% per year, by age her wealth position will be as follows:60 - $5.36m65 - $7m70 - $8.8m80 - $12.94mThis gives listeners a glimpse into the power of time. Dave also delves into debt retirement and timeframes for cashflow neutrality.... tune in to hear more.The Trio then step into Alison's future rental returns and they also consider the necessary evils; land tax and other taxes. When it comes to property portfolio management, knowledge is power, and cashflow is king.Dave's overview is valuable and his preference for targeting capital growth assets comes to light in this listener Q&A. Tackling interest costs, short term cash shortfalls and buffers is a popular theme for this gripping episode, but what Cate shares in relation to rental growth is important for Alison to take note of. Like a strand of DNA, the rent does broadly grow in line with the rate of capital growth, but not always in perfect synchronicity. Gross rental yields are typically elastic, and Alison can look forward to enjoying long term rental growth at the same rate as her capital growth rate.From selling Bass Coast to selling the townhouse, holding all and working hard for more years, the Trio each share their thoughts, pro's and cons, risk mitigants, and they each give Alison some good food for thought. No divestment decision is easy for investors, and Alison gets three points of view in this Listener Q&A ep. And our gold nuggets....Mike Mortlock's gold nugget: Mike shares a carrot and stick analogy. The stick is the tax, but the carrot, (the capital growth) is harder to focus on because the stick can hurt. It's important to remain objective. Dave Johnston's gold nugget: "The starting point for any successful property plan is understanding the numbers and the long term implications for any options and choices that you have in front of you." Cate Bakos's gold nugget: Cate uses a real-life, personal example to share with listeners the power of time. Show notes: https://www.propertytrio.com.au/2023/10/09/sell-or-hold-listener-question/

Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXMMike bravely delves in to mortgages.... and dares to ask whether the mortgage cliff is a threat to our property market.Is it a beat-up? Or is it something we should be bracing for? Dave mentions the Y2K bug and questions the power of fear."Miliions on Mortgage Cliff" is a headline Mike cites, and he plans to challenge the magnitude quoted.Mortgage stress, mortgage delinquencies and timelines are on Mike's discussion list.Firstly, Dave explains the concept of the fixed rate cliff, and sheds light on what is is that the media have many gripped with fear (or hope) about. It essentially hinges on a large volume of exceptionally cheap loans that are coming out of fixed rate and re-adjusting to today's variable rate. For many borrowers, their holding costs will be considerably higher this year. However, the Trio are determined to uncover the numbers, the percentages and the truth about the fixed rate cliff claims.Cate ponders why more people didn't fix during the pandemic and finds a good bar-tab comparison."The determinants of mortgage defaults in Australia; evidence for the double-trigger hypothesis" is a paper that Mike stumbled across. Jokes aside; negative equity is strongly correlated with whether a loan is in arrears. The Trio define and unpack this for our listeners.From high LVR loans to reducing credit, Cate and Dave ponder the impact of regulator intervention. Dave points out that global economies vary greatly, and the pair share some examples of past lending practices that are not so commonplace today.While Mike has some fun with the special effects and the audio bleeps, Dave gets serious about shedding light on the real numbers when it comes to mortgage arrears. Rising property values and regulatory control over credit have certainly shielded our nation from broad arrears.Mike shares some stats and it's a compelling data set. Tune in to find out more... Cate asks Dave about refinancing activity. Despite the value of new lending deteriorating, the rate of refinancing is HUGE. The value of external refinancing is up a massive 21% over the last year. What are the reasons? Dave expands... it's intriguing to hear first-hand from a business owner about the behind-the-scenes of a mortgage broking business during COVID."Mike, the numbers seem large..." Cate quizzes Mike about some of the stats quoted in relation to the expiry of fixed rate loans and Mike puts the numbers into perspective. It's a must-listen!The vast majority of lending is on variable rates and Mike's numbers-brain looks over the data and contrasts it to the claims. "There's a lot more to be positive about than the media lets on".Cate considers the plight of first home buyers who were not entirely prepped for higher interest rates, and she points out that two per cent was never sustainable."One third of people have a mortgage, one third of people have paid off their mortgage, and one third rent". And Dave's overview of ASIC's position and the non-bank lenders is intriguing.We hope our listeners have gleaned some good insight from this ep.And our gold nuggets…… Mike Mortlock's gold nugget: While some new variable rate mortgage holders will be feeling some pain, spending is moderating and Mike holds hope that the 'mortgage cliff' is a bit of a beat up. He believes that rate cuts are likely to be around the corner. "It's not a cliff... that's my summary.'Dave Johnston's gold nugget: Dave also feels that it's not a cliff either. It will likely have a 'slow tail' and there will be some pain, but not so much in the owner occupier residential market.Cate Bakos's gold nugget: Overall, there will be a mortgage cliff for some individuals, but Cate doesn't think that there will be advantageous buying conditions as a result. We have to consider the other forcefields; new arrivals (skilled migrants), a rapid increase in rents, and we also have to consider the impact of inflation on property values, and lastly; confidence from high employment.Show Notes: https://www.propertytrio.com.au/2023/10/02/breaking-into-buyers-agency-2/