The Property Academy Podcast

In this episode, we discuss what do you do if you don't like your tenants. And we move on to speak broadly about tenancy law in property investment . This episode was inspired by one of our youngest listeners, 7 year-old Jackson, who asked his Mum what to do in this situation.  We cover the idea that your relationship with your tenant (as a landlord) is not a personal relationship, it is a bu...

In this episode, we discuss one of the key fears that stops people from investing in property – vacancy i.e. the fear of not having a tenant. This is a fear we often see. If a landlord doesn't have a tenant then they need to cover the costs of owning an investment property entirely by themselves – the mortgage, rates, property management, insurance and maintenance. This would be crippling for...

In this episode, we discuss whether you should get your investment ideas and strategies for where tho invest from the headlines.  We talk through the fact that by the time the newspapers are writing stories about high growth areas, it is often too late. And we discuss that for Buy and Hold investors, it is more important to look at a market's fundamentals rather than following the quicks wins...

In this episode, we discuss that there are only 2 core property investment strategies: Buy and Hold, and Flipping. Most other strategies people use are variations of the two. Buy and Hold investing is the 'get rich slow' strategy, where you buy an investment that you forecast will increase in value over time. Flipping is where you buy a property that is a bit 'run down' and then renovate it to inc...

In this episode, we discuss a study that was conducted by the Commission for Financial Capability as part of Sortd Money Week in September 2019. The study showed that parents would rather talk with their kids about sex and drugs, rather than money.  Parents would rather cover drugs (26%) and alcohol (27%) than tell their children how much they earned (14%) or talk about the risks of personal...

In this episode, we discuss why interest-only mortgages are the preferred loan used by property investors.  We discuss how interest-only loans help you build your portfolio more quickly than using a principal and interest loan. And further, whether the banks are still lending on interest-only. To find out more about interest-only mortgages and property investing, head to our epic guide to pro...

In this episode, we question whether the suburb of Rolleston makes a good investment option. Rolleston is the largest town in the Selwyn District and is a 30-minute drive to Christchurch. Rolleston was dubbed the "city of the future" for many years. It seems as if it is coming true. The town has had 12% annual population growth over the last 15 years, which is projected to continue.  It also...

In this episode, we discuss how it's scary buying your first investment property. So don't feel bad if you're freaking out buying your first investment property too. We go through our personal investment stories and walk through what it was like when we made our start. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ .

In this episode, we discuss 2 potential strategies you can use to pay off your mortgage faster, using investment property.  Both strategies involve leveraging your existing home to purchase an investment property. In essence, this means using the house to pay for itself. In the first strategy, you purchase a capital growth property, which will go up in value quickly, though will also require...

In Episode #17, we discuss the 5 reasons why your mortgage application for your first home might be declined. Not enough of a deposit Not able to afford the mortgage "Poor account conduct" Bad credit rating Not being with the bank you're applying to. Have one of them, you may be ok. Have 2 or more and it could be bad news. We also talk through how to work your way through these, if you any of thes...

In Episode #16, we discuss whether it is the right financial decision to purchase the street that is just down the road from you.  We touch on why it may be better to diversify your risk across multiple areas of a city – or across several cities.  This means that all your eggs aren't in one basket.  We also touch on the fact that it is often better for your investment to be out of s...

In Episode #15, we discuss AirBnbs, and the benefits and drawbacks of using your investment property for Airbnb only, rather than tenanting the property. Andrew specifically walks through an example of the "sleep test" where, if you are struggling to get to sleep because you're worried about whether there will be bookings, then Airbnb is probably not a good option for you.  We also discuss th...

In Episode #14, we discuss whether property investors are "greedy psychopaths". Ed recently had an article published in Stuff, New Zealand's largest news website. One commenter wrote, "property investment (speculation really) is a cancer on society by greedy psychopaths." We touch on that without property investors, many New Zealanders wouldn't have a place to live, since investors provide accommo...

In Episode 13, we discuss Ring Fencing. This is a new piece of legislation that stops New Zealand property investors from claiming tax benefits they were previously entitled to.  Under the previous regime, if a property investor made a tax loss each year, the investor could subtract the loss from their income tax.  This meant that they could claim a tax refund on the additional tax they...

In Episode 12, we discuss split banking. Split banking is the process of using multiple banks, rather than just a single bank.  Split banking means that you can protect your assets, control the proceeds of any sales you make, and potentially borrow more. This means you can grow your wealth and your portfolio faster.  Andrew also shares a story of clients who didn't use split banking and...

In Episode 11, we discuss KPMG's Magnet City report. Written in 2015, the global report introduces the concept of the Magnet City, a city that is expected to attract population growth of a particular type of people – young wealth creators. Young wealth creators are those who will start businesses and create jobs, which improves the economy of a region. This is important for property investors beca...

In Episode 10, we discuss why you shouldn't be afraid of investing in a flat property market, where prices aren't increasing.  Andrew quotes Warren Buffet: "be fearful when others are greedy and greedy when others are fearful." And we talk through that investing in a market when prices are already going up means that another property owner receives the gains you might have achieved. Although...

In Episode 9, we discuss all the reasons why you would – and should – use a mortgage broker. That's whether you're a first home buyer or a property investor. You may look around on the internet and look for a mortgage calculator , and then think you don't need a mortgage broker. However, mortgage brokers do more than just calculate your mortgage. Mortgage brokers are your representative to th...

In Episode #8, we walk through the five sources first home buyers can tap into to pull together their deposits. The five sources are: KiwiSaver The Home Start Grant Savings The Sale of Existing Assets The Bank of Mum and Dad We also go through how to start tapping into each of these sources and some of the restrictions, rules and regulations around the government sources. To find out more about th...

In Episode #7, we discuss the difference between equity and useable equity + how that impacts your ability to become a property investor.  Most people become first-time property investors by leveraging their own homes to secure the deposit for their investment.  In the episode, we discuss the way to do this: 1) take out a separate loan against your own home, 2) use the money from that &n...

In Episode #6, we discuss the differences between investing in brand new properties or properties that have already been lived in before (existing properties).  We specifically discuss the differences in what banks will lend you towards each type of property and the level of deposit you need for each.  We also discuss the differences in tenants you might get, and why the decision actuall...

In Episode #5, we talk about how much you need to get started in property investment (and first homes). This topic came from an audience member who was on our website and specifically asked how much they need to get started. We've previously talked about the percentage amounts that people need to get started, but here we start to talk about the actual dollar amounts required. In the episode, we re...

In Episode #4, we talk about the Labour government's recent KiwiBuild Reset and what this means for First Home Buyers.  We talk about the Welcome Home Loans, where First Home Buyers now only need a 5% deposit to purchase a house (terms and conditions apply). We go through what those terms and conditions are, and touch on why property is more affordable now than it was a few years ago ... even...

In Episode #3, we talk about the returns you can expect to get from property and real estate investing. We also compare these returns to other types of investments. We talk about the concept of leverage. We touch on how you can use the bank's money to purchase a property ... and then keep all the profits as the house increases in value. We then speak about why property is one of the only asset cla...

In Episode #2, we talk about the retirement gap, which is the significant gap between what Kiwis want to live on in retirement, and what they're actually on track to have. The World Economic Forum, recently said that ageing populations and lack of savings are "the financial equivalent of climate change".  We also cover why the retirement gap exists, how New Zealand's population is changing, a...