The Property Academy Podcast

In this episode, we discuss the seven things you should look for within a rental property. These are:  There is a good mix of capital gain and cashflow You need to decide who your end buyer is going to be when you plan to sell the property  That the property is in a high population area That there are amenities around the property, like jobs, parks, schools and pools The price of the property and whether you're getting a good price relative to its market value That it fits within your strategy Can you hold the property long term These are the 7 things to look out for within your rental property and you can use this as a checklist when looking for your next rental property.  We also discuss our property investor strategy quiz. This 6 question quiz will recommend and give an indication of the right strategy for you.

In this episode, we discuss what the Rule of 20 is in retirement planning and how it works.   This is a rule of thumb, which says that once you decide the level of retirement income you want, multiply it by 20 and that is the number of freehold assets you need to produce the income you want.  That means if you want to live on $100,000 a year, you'll need roughly $2,000,000 worth of assets to produce that level of income every year in perpetuity. That's based on your portfolio producing a 5% gross yield every year.  We also mention our property investor quiz. These 7-questions will give you an indication about whether you're in a position to invest and gives a full report based on your numbers.  

In this episode, we discuss all the different types of valuations. These include: CV – Council Value / RV – Rateable Value / GV – Government Value e-value  Registered Valuation Sale Price, and Real Estate Agent Appraisals We also discuss how these valuations impact your ability to get lending from the bank for the property you want to buy, and also how to use these valuations to grow your investment portfolio.  If you're interested in investing yourself, take our property investor quiz. This gives you a yes, no or maybe answer as to whether you are in a position to invest in property right now. 

In this episode, we discuss what happens if a natural disaster hits your property and how the Canterbury earthquakes have impacted building standards across the country.  We specifically discuss the differences between TC1, TC2 and TC3 land and what that means in terms of the risk of liquefaction on the ground beneath your property. Risk-based insurance pricing also makes a feature and we discuss how this can be used as a proxy for the risk of your property.  If you are keen to find out whether you're able to become an investor, why not take our property investor quiz? This 7-question quiz will give you an indication of whether you're in a position to become a property investor.

In this episode, we discuss how BNZ is no longer offering pre-approvals to non-bank customers. This has some far-reaching implications for property investors and mortgage brokers.  It likely means that investors and homebuyers will find the property they want first and sign it conditional to finance before taking the property to the bank. This means that the bank will prioritise the deal.  It is also an indication of strength in the banking and property sector ... if the bank is turning down potential business it is likely because they have been inundated with applications, suggesting that there is even more activity in the market. It also means it is more likely that mortgage brokers will become more important as prospective purchasers consult them for advice.  We also mentioned the Epic Guide to Mortgages, a 9,500 word guide that teaches you how to get a mortgage and pay it off faster in 2020.

In this episode, we discuss why properties are sometimes more expensive when you buy a property through a property coach than if you look on a developer's website.  The reason this is sometimes the case is that developers will exclude some parts of the property from that price. For instance, you might see a property for $499K, but it might exclude the driveway, landscaping or the letterbox. If you wanted it all included, it might cost $525K.  A property coach, on the other hand, will only list the price that is all-inclusive and ready to rent.  We also mentioned the Epic Guide to Property Investment, this is our 16,000 word guide that will teach you how to smash your property investment goals in 2020

In this episode, we discuss how to figure out what you want in a property investment strategy. Andrew and Ed go through a model that Opes has created to think about the sorts of needs you have as an investor.  It is based on a triangle model with the most important property investor needs at the top, and the functional needs near the bottom. Here is the link to the model that was discussed throughout the show.  You can also take this quiz to figure out which strategy is right for you based on this model. 

In this episode, we discuss the top problems and issues that investors usually come across when investing in property (and how to solve them). We discuss potential solutions and risk mitigation for each of the following: Issues with lending, broken down into – Interest rates rising increasing your expenses, not being able to get borrowing from the bank, and not being able to have interest-only loans renewed Vacancy and tenancy problems – what if your rental property is turned into a P-lab or attracts unsavoury tenants? Maintenance and unexpected costs The Market – what happens if the market goes down and stays down?  You – What happens if you lose your job or are forced to sell the property early? We also discuss the Epic Guide to Mortgages – this is our 9,500-word guide that teaches you how to get a mortgage and then pay it off more quickly than you naturally would.

In this episode, we discuss ringfencing, what it is and how property investors can combat these recent tax changes.  From April 2019 property investors haven't been able to claim rental property losses against their income. Previously investors were able to claim a tax refund on any losses made by their rental property. That meant that if the property was negatively geared the tax could make it cheaper to own a rental property.  This is no longer the case, which means that owning negatively geared investment properties are more expensive.  Investors have three options to combat these higher costs: a) invest in positively geared properties, b) increase the rent charged on the rental properties, or c) attempt to decrease expenses by restructuring and refinance investment debt. We also mention the Epic Guide to Property Investment. This is 16,000-word guide that teaches you the fundamentals of how to invest in property. 

In this episode, we discuss depreciation. Depreciation is when the value of the things inside your home gradually decrease in value. It's a cost to you as an investor, but you don't actually pay for it in cash. This means that you can use depreciation to decrease the amount of tax you pay to the IRD each year.  Since the 2011-2012 financial year investors have no longer been able to claim depreciation on the value of their building (if it has a useful life of 50 years or less). However, they still can claim depreciation on the chattels within the building.  Here, we discuss the different types of depreciation and what can and can't be depreciated. This is a lead up to the next episode where we talk about ringfencing.  If you want to learn more about investment property, then why not check out our guide to how to get a mortgage? It's a 9,500-word guide called the Epic Guide to Mortgages and as well as helping you get one it will also teach you how to pay it off faster.