The Property Academy Podcast

In this episode, Micky Limmer from Bayleys Canterbury joins the show to discuss how to get the most money possible when selling your properties. Along with the standard tips about ensuring the property tidy and clean, and the gardens well maintained, Micky also adds a few extra tips: paint the front step. When potential buyers come to your property they first thing they will do is bend down to take off their shoes. Their first impression will literally be of your front doorstep, whether they realise it or not use Barkeeper's friend to make stainless steel basins and shower glass look like new replace the rubber at the bottom of your shower door, which can discolour over time. Together, these small actions make a big difference. You should also consider staging the property. For a 3 bedroom, 2 bathroom home this may only cost $2,000 (including gst). And consider hiring a company to complete an external wash of your home, which may cost as little as $350. Conducting other maintenance on your home, such as buying new carpet can make a difference. a 3 bedroom home may only cost $3.5-$4k to be recarpeted. However, buyers often overestimate these costs and will factor it in when they make an offer. Younger buyers will also need these costs capitalised into the value of the property as they may not have the funds to complete these themselves. We also mention the Opes Partners Instagram. Every second day we publish a new carousel that educates you about the property market. Follow us there to stay up to date.

In this episode, we discuss whether you can vote left and still be a landlord. We acknowledge that while National has more landlord-friendly policies, we vote for parties because of a wide range of policies. Even if one of those policies (or several) aren't in our direct interest, we can still identify with that party more than the other. We also mention the Opes Partners Instagram. Every second day we publish a new carousel that educates you about the property market. Follow us there to stay up to date. 

In this episode, we discuss gentrification. Gentrification occurs when a suburb or town begins to become more trendy and upmarket because the type of people who live in that area changes.  This is often the cause of long term social change, but also because of the fundamentals of the suburb or area.  Take Auckland's Ponsonby. Decades ago the suburb was considered a place for blue-collar workers to live. Because of the suburb's proximity to Central Auckland, higher-income workers began moving to the suburb. Shops got nicer and more trendy and people renovated their homes.  This attracted more higher-income workers into the area and the process continues.  We also discuss the areas we believe could be open for gentrification in the future both in Auckland and in Christchurch.  We also mention the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no', or 'maybe' answer about whether you are in the position to invest in property.

In this episode, we discuss how to set buying rules for yourself. Buying rules are a concept in property investment where you set some restrictions about the sort of properties that you will and won't buy. Because property investment can become emotional, some investors will think 'but, I really like this house' and buy it anyway ... even if the purchase doesn't stack up from a numbers perspective. Setting buying rules before you look at investment properties will save you time because you won't bother looking at properties that don't meet your criteria. They will also make your property portfolio more appropriate for you because you're less likely to make a bad buy. You can set buying rules about: Maximum purchase price The amount of work needed to make the property tenantable Whether the property is brand new and requires a lower deposit, or an existing property Where the property is located, i.e. in a city near you or whether outside of the city you live in The gross yield or net yield you want to attract The projected capital growth you think the property will achieve And many other potential buying rules. We also mention the Property Investor Quiz. This 7 question quiz will give you a 'yes', 'no' or 'maybe' answer about whether you are in the financial position to invest in property.

In this episode, we discuss whether using equity in your home to purchase an investment property will increase your mortgage repayments.  When you use equity frim within your home to purchase an investment property, you typically take out a separate loan against your property, which is sometimes in the structure of a mortgage top-up.  You then use this loan as the deposit for your new investment property.  Because you have taken out additional lending, there will be additional repayments against that mortgage. However, these extra repayments will be structured so they fall against your investment property.  That is because, from a tax perspective, the purpose of the loan is for the investment property and so falls within your investment property's financial statements.  The rent from your tenant will cover the majority of the rental property's expenses. However, there may be a small top-up required from the investor to make the cashflow balance.  So while you may contribute a small amount of cash towards the property as an investor, perhaps $50-$75 a week, there won't be additional mortgage repayments you have to make against your own home.  We also mention the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no' or 'maybe' answer about whether you are in the financial position to invest in property.

In this episode, independent economist, Tony Alexander joins the show.  Tony is one of the most respected economic writers in the country and for almost 25 years was the Chief Economist at the BNZ. He has arguably written more than any other person about the New Zealand economy and our property market. During this episode, Tony argues that despite the rhetoric often heard from the government, the reserve bank and the treasury, they want your house price to increase. Why? Because higher house prices increase homeowners confidence.  And right now the New Zealand economy needs additional confidence to ward off or limit the economic impacts of a recession.  Falling house prices will conversely lead to a decrease in consumer confidence and make any recession potentially worse.  Increasing confidence will also benefit the coalition government in an election year. We also make mention of the Property Investor Quiz. If you've been an avid listener of the show, then you may be thinking about becoming an investor. If that's you, take the quiz.  This 7-question quiz will give you a 'yes', 'no', or 'maybe answer about whether you are in the financial position to invest in property right now. 

In this episode, independent economist, Tony Alexander joins Ed and Andrew to discuss how long interest rates can stay low.  Many listeners will think back to the 80's and remember how high interest rates were at the time. Some even treat it like a competition.  It was not uncommon at the time to see interest rates of 18-26%. Naturally, anyone who ever paid interest at that level is likely wondering 'how low can interest rates stay low?' In Tony's view, interest rates will stay as low for at least a decade. He's predicting that we are in a low interest rate environment and that the previous high interest rate periods were a one-off due to rampant inflation at the time.  In other words, low interest rates are the norm. The high interest rates previously experienced were the exception.  Borrowers and investors can, therefore, take heart and have confidence that they will not likely face higher interest rates for some time. If you've been listening to the show for a while and are considering becoming a property investor. Then check out the property investor quiz. This 7-question quiz will give you a 'yes', 'no', or 'maybe' answer as to whether you are in the financial position to invest in property.

In this episode, Tony Alexander, an independent economist, joins the show to answer: do we have a housing shortage in New Zealand? Being the good economist he is, Tony identifies that, as long as there isn't government interference in a market in the form of price controls, a free market can never have a technical shortage. Why? Because the market price will adjust to balance supply and demand.  If there aren't enough houses for the number of buyers, some buyers will miss out and bid up the price of houses. That reduces the total number of buyers active in the market and brings new sellers into the market. Eventually, we'll find ourselves at an equilibrium where there is no longer a shortage. However, Tony also identifies that there is likely a shortage compared to the number of properties we appear to want to have in society.  In particular, Tony identifies that the proportion of homes built at the lower-priced end of the market has decreased to about 5% of all homes (down from approximately 25%).  This means that there are fewer and fewer homes available for the most vulnerable in society. If you've been listening to the show for a while and are wondering whether you are in a position to become a property investor, why not try the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no' or 'maybe' answer about whether you are in the financial position to invest in property. 

In this episode, independent economist, Tony Alexander joins the podcast. Tony was the Chief Economist at BNZ for almost 25 years before striking out on his own. Here, Tony looks at the primary factors that lead to increases in house prices. The primary factors include: decreases in interest rates. As interest rates decrease, taking on more bank lending becomes cheaper and more affordable. That decrease encourages more prospective home buyers to take on more debt and bid up house prices. Tony takes care to stress that this effect will come 'eventually' as opposed to right away. Increases in net migration (total number of people migrating to the country as opposed to moving away) will increase the population and increase demand for housing. If this flow outnumbers the number of new buildings completed (and available on the market) this will will eventually increase house prices. Changes in financing. As credit becomes more available, more people will take on borrowing, bidding up prices. Make sure to tune in for tomorrow's episode where Tony will join the show again. And don't forget to test out the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no', or 'maybe' answer as to whether you are in the position to invest in the housing market or not.

In this episode, Tony Alexander joins Ed and Andrew on the podcast.  Tony Alexander was the Chief Economist at BNZ for almost 25 years and is one of the most highly regarded economists in the country. After leaving the bank late last year, Tony became an independent economist and now provides commentary around the country and is a highly sought after speaker. During this first episode, Tony breaks down how the Christchurch property market compares to the rest of the country.  On the 24th October 2019, Tony released a series of graphs comparing each region's median house price with the long term average with the rest of the country.  That analysis shows that Canterbury is currently about 20% below its average position compared to the rest of the country.  If Canterbury's fundamental underlying value remains constant, then we would expect there to be a correction in the Canterbury market allowing room for "catch up growth".  Catch up growth occurs when one region looks relatively cheap compared to others, so investors and prospective property buyers begin to bid the price up.  Of course, you need to take these types of analyses with a grain of salt, so Tony walks us through what to watch out for when considering this analysis. If you'd like to learn about how to get a mortgage and pay it off in 2020, then check out the Epic Guide to Mortgages. This 9,500 word guide will teach you how to get a mortgage and pay it off in 2020.