The Property Academy Podcast

In this episode, we discuss 5 reasons why the property market in New Zealand may not drop in value by as much as you would otherwise think. These reasons are: The drop in interest rates make it cheaper for homebuyers and investors to purchase property. Lower interest rates also decrease the return from term deposit, which encourage investors to seek yield in the property market First home buyers are able to save money throughout the lockdown and are likely to form new savings habits Investors are likely to move their focus from New Zealand's regions and instead pull back to the major cities, which have more diversified economies and have greater prospects for employment Similarly, investors are likely to move their focus from commercial property to residential property The Reserve Bank's increase in the money supply through the Large Scale Asset Purchasing Programme is likely to create a Cantillon effect, where investors seek higher yielding assets, which will likely push up the price of shares and property Bonus: the loan to value ratio restriction are being removed, which allow investors to invest with more freedom. We also mention our upcoming property investment webinar, which is being held this Tuesday at 7pm. You can sign up using the previous link.

In this episode, we discuss split banking and why you can get more money from the bank if you cheat it on it with another.  This is because when you have all your lending with one bank, they cross secure the assets and you can only borrow a maximum of 70% against the value of your investment properties. But, if you move that lending across to another bank, you're able to borrow up to 80% of the value. That leaves more useable equity within your own home.  We also mention our upcoming property investment webinar, which is being held this Tuesday at 7pm. You can sign up using the previous link. This episode is based on a previous webinar we held called How to Grow from 2 to 5 Properties. Check out the whole webinar through the link.

In this episode, we discuss 5 different strategies that you can use to pass the bank's servicing stress test. Whenever you apply for a mortgage from the bank, the institution will stress-test your application through different criteria.  If you don't have enough income to pass these stress tests, you can improve your position by decreasing your expenses ... not by spending less, but by restructuring your financial payments.  We also mention our upcoming property investment webinar, which is being held this Tuesday at 7pm. You can sign up using the previous link. This episode is based on a previous webinar we held called How to Grow from 2 to 5 Properties. Check out the whole webinar through the link.

In this episode, we discuss a new data source from QV that investors can use when considering investments in different areas.  While the tool can give broad insight into gross yields across multiple suburbs, we do question their usefulness when applied with a broad brush across the whole suburb. Better to use the additional features to dig down into the number of bedrooms and type of property you are considering.  We also mention our upcoming property investment webinar, which is coming up this Tuesday at 7pm, where we will be discussing how to live off your property portfolio. 

In this episode, we discuss recently released data from the Real Estate Institute of New Zealand. This house price and volume data covers properties that settled in the month of March.  March 2020 showed strong house price growth across the country, with particularly promising growth in Auckland and Christchurch.  We also mentioned our property investment webinar, which is coming up this Tuesday. You can register for that webinar here.

In this episode, we discuss a particular proportional property ownership model that is currently being promoted by a property investment company within New Zealand.  The model includes purchasing a residential property outright, without any debt – the investment divided into 12 equal shares and offered to investors. The benefit of this model is that an investor can get exposure to the property market for a lower entry price. The cons are that when a property is purchased without debt, there is no opportunity for leverage ... the key benefit of property.  We also mention that we are holding a webinar this evening at 7pm to teach you how to grow your property portfolio from 2 to 5 properties. Register for the webinar here. 

In this episode, we discuss the Reserve Bank's recent announcement that it will scrap the Loan to Value Restrictions for a period of 12 months.  This will have a massive stimulatory effect on the property market as: investors will have more ability to borrow against their existing portfolios to buy more property. They'll also be able to purchase more property using that lending. We also discuss our property investor webinar, which is coming up this Thursday at 7 pm. We're going to teach you how to grow your property portfolio from 2 to 5 properties. 

In this episode, Andrew and Ed feature on the NZ Everyday Investor Podcast, which is hosted by Darcy Ungaro. Darcy recently asked us to come on the show to talk about forces for good and bad in the property market. In part 2 of the 2 part series, we talk about the forces for good, the things that could typically push property prices up on average. This includes LVR changes, interest rates, changes in the money supply and internationals moving to NZ. We also mention our property investment webinar, where we are going to talk through how you can grow your property portfolio from 2 to 5 properties and get more money from the bank.

In this episode, Andrew and Ed feature on the NZ Everyday Investor Podcast, which is hosted by Darcy Ungaro. Darcy recently asked us to come on the show to talk about forces for good and bad in the property market.  In part 1 of the 2 part series, we talk about the forces for bad, the things that could typically pull property prices down on average. During tomorrow's show we'll talk about the forces for good that good work well for property prices.  We also mention our property investment webinar, where we are going to talk through how you can grow your property portfolio from 2 to 5 properties and get more money from the bank. 

In this episode, we discuss why first and second home buyers often can't buy a do-up and why that presents an opportunity for property investors. A common misconception is that when first home buyers purchase a do-up that they can borrow the renovation costs as well ... because the property will soon be worth more. That's not the case, you cannot borrow renovation costs, unless you already have more than a 20% deposit. That means that low-deposit borrowers (primarily first and second home borrowers can't afford t do a property up. But, they could afford to purchase a more expensive property that has already been renovated. We also mention our upcoming property investors webinar where we will teach you how to get more money from the bank and grow your property portfolio. Sign up to the webinar here.