252 afleveringen

Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.

Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.

So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!

The Property Trio Cate Bakos, David Johnston and Mike Mortlock

    • Zaken en persoonlijke financiën

Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.

Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.

So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!

    #250: Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

    #250: Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

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

    For 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/

    • 39 min.
    #249: February market update - One percent national vacancy rates?!

    #249: February market update - One percent national vacancy rates?!

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

    The 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/

    • 46 min.
    #248: Home Dreams vs Investment Dollars - Upgrade & Sell vs Rentvest & Hold, Location Choices & School Zones, Taxes & Cash Flow Pressures

    #248: Home Dreams vs Investment Dollars - Upgrade & Sell vs Rentvest & Hold, Location Choices & School Zones, Taxes & Cash Flow Pressures

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

    Dave 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/

    • 56 min.
    #247: The Ultimate Settlement Guide - Navigating the Steps, Paperwork, Timelines & Traps to a Successful Settlement

    #247: The Ultimate Settlement Guide - Navigating the Steps, Paperwork, Timelines & Traps to a Successful Settlement

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

    Dave 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/

    • 51 min.
    #246: Tackling Housing Affordability - Part 2: The Trio’s Blueprint to Foster a Healthy Property Market

    #246: Tackling Housing Affordability - Part 2: The Trio’s Blueprint to Foster a Healthy Property Market

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

    In this innovative, two part series, the Trio share their own ideas and ideals to contribute to some solutions for solving the housing crisis.

    Dave is clear. "It's all supply, supply, supply". But he is clear on the need to define the 'ideal' balance being agreed and struck.

    Cate and Dave debate the short-stay accommodation impact on rental supply... is short-stay problematic? Mike weighs in with his thoughts. Will the day come when the government(s) decide to entice investors back? As Cate points out, limited investor participation is dangerous. But politicians need votes.

    The Trio tackle consider some possibilities, but questioning the disincentives is their first stop. The Trio share their ideas, with Cate's investor-incentives, and Dave's finance considerations. Cate contemplates the role that banks could play with postcode-based information. Mike likes the idea of moving towards a more European approach; long lease terms. Tune in to hear more.

    How could lending changes enhance our chances of improving the housing crisis? And what changes to some great existing government policies could make a significant difference?

    "Some of this is a function of being one of the wealthiest nations in the world".

    How can we provide support housing for critical workers? And how can we provide crisis accommodation? Does decentralising government services have a positive impact on housing?

    Cate runs through quite a few of the Trio's ideas. There is no doubt that many solutions have unintended consequences. Political decisions aren't easy, and tax reform and legislative change are often unpopular. The Trio recognise this and reflect on the power of consultation and healthy debate.

    Shownotes: https://www.propertytrio.com.au/2024/02/26/tackling-housing-affordability-part-two/

    • 45 min.
    #245: January 2024 Market Update - Reinvigorated buyer energy and funding holidays with unsecured debt. What's going on?!

    #245: January 2024 Market Update - Reinvigorated buyer energy and funding holidays with unsecured debt. What's going on?!

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

    The 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/

    • 51 min.

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