The Property Academy Podcast

In this episode, we are once again joined by property investor and executive leadership coach, Di Foster. After helping herself and her husband into property investment , Di began wanting to help her father, nieces and nephews all get into the property market. What Di discovered is that each generation needs to get its head around a slightly different concept. For Millenials, it's lifestyle. Mille...

In this episode, Di Foster – property investors and executive leadership coach – walks through the reasons she decided to get into the investment property market and become a property investor . Di opens up and tells us that she was in a different position than she thought she was going to be in, due to a health scare. This is what prompted her and her husband to start looking at investm...

In this episode, we discuss Christchurch's 'As Is' Market. The Christchurch earthquakes were devasting for homeowners in the Canterbury region. Many were left unlivable and there was a severe housing shortage in the city.  After homeowners were paid out, and the EQC had made repairs to properties, it was clear that there were still properties that needed work. This created the 'As Is' market....

In this episode, we are joined by Nick Johnstone a developer investor based in Christchurch. Nick walks us through a feasibility study he did on a piece of land.  His options were to either demolish the existing property on the land and build three new units. Or, he could build a minor dwelling on the back of the property and rent it.  He shows us why it made more sense for him to build...

In this episode, we answer another question from one of our youngest listeners, Jackson. Here he asks, why do people rent your houses? There several reasons why someone might rent from a property investor . These include not being at the stage of life where the person is ready and able to buy their own house, not wanting to take on debt, being transient or not being able to afford to buy in the ci...

In this episode, we answer a question from one of our youngest listeners, Jackson. Here, he asks a simple question: if I need to work to earn money to live on today, what will I do when I retire? This is important because before you can close your retirement plan in place, you need to know that your retirement gap exists.  In the show we talk about the two approaches to closing your retiremen...

In this episode, we discuss negative gearing. This is the situation where your property makes a cash loss each year after factoring in interest costs. Some property investors steer clear of negative gearing others embrace it.  The fact is that negative gearing typically occurs when mortgage repayments are high and when investors have purchased their investment property with 100% lending. This...

In this episode, we discuss the fact that you're not going to live in your investment property , so you can't treat it as if you will. Instead of looking for factors that you would 'like' to have as a tenant, you need to look for the factors that will make it a great investment: good capital growth with reasonable cashflow. 

In this episode, we discuss that many people will wonder why they should get into property investment now ... why not wait a few years? We discuss that so many things can change over time in property. In 5 years you may be subject to stricter lending criteria, higher market prices or increased regulation.  You've also got limited control about what could happen in the future, and you have no...

In this episode, we discuss rental yields and which towns generate the best rental return for investors. We walk through the top 5 towns, and discuss the reasons why they might get superior rental yields.

In this episode, we talk about whether prospective property investors should pay off their personal (owner occupier) mortgages before investing in property – and which they should pay off first.  This question came from the Property Investment Chat Group NZ, a Facebook group where investors discuss property in New Zealand.  Andrew walks through the reasons why it is generally better...

In this episode, we discuss this week's Reserve Bank update. While not much changed from a policy perspective – the Official Cash Rate didn't change and the LVRs remained at their current levels – there were some key points made, which indicate future moves.  The Reserve Bank indicated that a rate cut is likely to occur in February 2020 and that the bank would still like to see increased spen...

In this episode, we discuss why the NZ property market is unique. We identify that because New Zealand is a long skinny country, which was colonised, our major cities are primarily port cities – based around large bodies of water. This is true for Auckland, Tauranga, Dunedin, Wellington, New Plymouth – and even Christchurch. This means that there is an area the city can't expand into. Th...

In this episode, we discuss that property investment requires a sacrifice – an investment. It might sound obvious, but Andrew gives an example of a couple who wanted to invest in property but didn't want to sacrifice their current lifestyle.  His challenge to them was to sacrifice now and invest ... or continue to live their current lifestyle and sacrifice later in retirement. 

In this episode, we discuss how property cycles tend to work, with a special mention on the Auckland Property Market . Property cycles are arguably one of the most important considerations when investing in property. However, they are very hard/impossible to predict.  One of the key takeaways from the show is that the property cycle is not the same as the economic cycle. Where shares tend to...

In this episode, we give three real-life case studies about what can happen to property investors when they take the plunge.  2 of the investors within these case studies achieved large gains in the value of their properties within the first 4-6 years of owning their investments. 1 of them is yet to see any substantial gain from their investment. We talk through some of the reasons why this m...

In this episode, we discuss whether Mangere is a good suburb to invest in. Mangere is one of Auckland's lower socio-economic areas, and may not typically have been where most investors would have thought to buy a property. However, there are a lot of good reasons to invest in properties that are located within the suburb.  Over the last 18.5 years, Mangere properties have appreciated at a rat...

In this episode, we discuss the nitty-gritty of what property managers really do for property investors . Over a 10 year period, you are likely to pay your property manager the same amount of cash as you will your real estate agent. However, for that, you will get significantly more value and service.  Celia estimates that over recent years the workload for a property manager has increased by...

In this episode, we discuss what a good rental yield is for Auckland property investors . Nationally, we know that Auckland typically will deliver higher capital growth but lower yields.  This depends on the type of property you have in Auckland, its location and then purchase price.  While the national median yield is over 4%, in Auckland, we would typically think someone hitting 4% wou...

In this episode, we are joined by Celia Burbery from Auckland Property Management. Property management is so important because if you want to get the long term gains from investment property , then you need to hold the property for the long term.  A big part of being able to do that is managing the property itself. That's where property managers come in. Recently there have been a few law cha...

In this episode, we discuss the additional costs you will face as an Airbnb property investor . These include all the utilities you need to cover e.g. water, power, internet. You'd also expect to pay for consumables like salt and pepper, shampoo, milk (all the creature comforts guests expect). Property management is also more hands-on, which leads to higher costs. Management fees are also higher....

In this episode, we discuss a report that was published about Airbnnb by Deloitte, a consultancy, in 2017. This includes the economic impacts that Airbnb has on the economy at the time.  The report shows that 35% of Airbnb nights were from New Zealanders, followed by Australia, United States, China and the UK.  Airbnb had circa 1.5 million guest nights within the study period, and brough...

In this episode, we discuss that if property investors want to get a high rental yield on their Airbnb, they need to get a high occupancy rate. And the way to do this is knowing what guests are looking for when booking an Airbnb. If you know what guests are looking for, you can give it to them, and better market your property.  From Jon's experience there are four things that guests typically...

In this episode, we discuss one simple strategy you can use to double your price on Airbnb – dynamic pricing. This is where you vary the price of your property based on what is happening in the market. When there is a lot of demand in the market for flights or hotel rooms, hotels and airlines will put their prices up.  Jon shares that software is now available that allows Airbnb hosts to...

In this episode, we are joined by Jon Lawry from Urban Butler to discuss using Airbnb with property investment . This episode specifically covers the yield you can expect from an Airbnb. Typically you can expect at least a 50% higher net yield from an Airbnb compared to a standard long term tenancy. It is, however, important to note that to generate these types of yields you need a property that w...