The Property Academy Podcast

In this episode, we discuss whether you should ever think about moving into your investment properties? This is a question that is frequently raised by newbie investors. They're thinking about moving to a city in the future and wonder whether they can lock in today's property prices, rather than pay more in the future.  Generally, this isn't the best idea. If you buy an investment property with the intention of living in it, emotion can start to cloud your decision making. You may make a bad investment.  Instead, it's a better idea to buy a property, or a series of investment properties that make sense on their own. Then when you are ready to buy your own property, you can leverage off the equity gained in your investments so you can purchase the home you want to live in.  In the show, we also mention our Epic Guide to Mortgages. If you're planning to buy a property in 2020, this 9,500 word guide will teach you everything you need to know about getting a mortgage and paying it down more quickly. 

In this episode, we discuss a recent Stuff article that Ed wrote and had published. Looking at data from the Ministry of Housing and Urban Development, he found that the just shy of a third of renters actually could afford to pay for a mortgage for their first home.  With deposit requirements for the First Home Loan falling to 5%, he writes that it's puzzling that only 5% of renters each year become homeowners, when many more could afford it. It seems there is a perception gap. 62% of Kiwis surveyed by IPSOS said that they didn't believe they could afford a home in their local area. Again, this doesn't match with the data because 72% of Kiwis either already own their own home, or could afford it according to the Ministry's data.  There is a difference between what Kiwis can do, what they choose to do and what they say they can do.  We also mentioned the Epic Guide to Mortgages which Ed wrote over the Christmas break, which may be useful if you are considering taking our a mortgage in 2020.

In this episode, we discuss that your first home might actually be an investment property – you don't actually have to live in it.  We discuss the reasons why this might be right for you, and how it may be better to continue with your current lifestyle rather than upending it all to buy property.  First home buyers wanting to follow this strategy should be aware that they can't use their KiwiSaver to buy an investment property, but they can buy a property with their KiwiSaver for 6 months and then turn it into an investment property. 

In this episode, we discuss the Bank of Mum and Dad, including what it is and how to use it. The bank of Mum and Dad does not necessarily mean that your parents give you cash to use as your deposit to buy your first home.  More often than not, it is your parents increasing the size of their mortgage on their own property in order to give you enough of a deposit to top up your deposit.  This comes with its own risks and benefits and during the show we explain exactly how the bank of Mum and Dad works and a few things to look out for, whether you are using the bank of Mum and Dad to get started in property investment nz, or for your own home. 

In this episode, we discuss the exact steps that happen within a due diligence process and the costs associated.  Some listeners may be surprised to learn that you'd put a house under contract before conducting due diligence, but the important point to know is that the reason you put a property under contract first is so that you know you have the right to buy the property at a price that is acceptable to you.  When conducting due diligence you'll need to: Run the sale and purchase agreement passed your solicitor Order and look at the LIM Review the title Organise finance Conduct a valuation Conduct building inspections Talk to an insurance broker to ensure the property can be insured Conduct a chattel valuation (if you are an investor) All up due diligence for property investment nz can cost between $2500-$3500, so it is important that you conduct it only when you know it is a property you can buy and a price that is acceptable to you.

In this episode, we are once again joined by Bradley Parsonson from Opes Partners and Miuwi. And in the show, Brad shares a case study of a couple who didn't know each other and how they are going through the process to co-own property together.  In the show, Brad discusses how although mortgages are jointly and severable liable, some banks will offer loans where servicing is not tested on the whole loan, but only on the portion of a loan that one party takes out, as well as several other tips about how to get into co-ownership.

In this episode, we talk about the risks and benefits of using a 2nd-tier lender. 2nd-tier lenders are non-bank lenders, which means that they are not subject to the lvr restrictions set by the Reserve Bank. This means that they can lend above the 30% deposit required for an investment property without having to squeeze it into the small allowance offered for low-deposit loans. 

In this episode, we are joined by Bradley Parsonson, property coach at Opes and Co-founder of Miuwi – a property co-ownership company. During the show, Brad shares his top 2 lessons from owning property over the last 2 years: Have a buffer account, whether a revolving credit or an overdraft, so that you are able to keep the property afloat if your tenant stops paying Rely on your professionals and don't try to manage the property yourself

In this episode, we discuss several more types of insurance, including:  Health Insurance Trauma Insurance  Insurance is important to property investment nz because you don't know what you don't know. 

In this episode, we discuss insurance, who it's for and why it's important. Now the reason that we're talking about insurance on the podcast is because many people don't get into property investment because they are worried about perceived risk. Insurance helps to mitigate these risks, and a well thought out insurance plan will mean that we are protected in the event that the unforeseeable happens.  In this episode we specifically discuss: Loss of Income insurance Redundancy cover life insurance cover