The Property Academy Podcast

In this episode, we talk about the good and the bad of investing in individual hotel rooms. This episode comes from recent articles in the media regarding the Sofitel hotel in Auckland's viaduct.  The hotel management company has gone into receivership and room owners are left without rent or income, while still facing mortgage expenses if they have lending secured against them.  Finally...

In this episode, we discuss how long it takes for shares to catch up with leveraged property from a capital growth perspective.  The key benefit of  leveraged property is that you can invest with more money than you actually have sitting on your personal balance sheet. That means in the medium term you can get better gains than in an equivalent asset class e.g. shares even if they apprec...

In this episode, we discuss the 1980's classic: Jones on Property, written by Sir Bob Jones. Sir Bob is New Zealand's most prolific commercial property investor and a true hard case character.  In short, the book is an entertaining masterpiece, which shows how little has changed in property, politics and New Zealand over the last 40 years.    We share our top 7 takeaways, as well as...

In this episode, we discuss new data received from Core Logic about the cost of different properties across the four major centres based on the number of bedrooms these have.  This allows us to determine the costs of 'trading up' a property to get an additional bedroom. In particular, we investigate how that cost to tradup has changed over time and what we can read int capital growth figures...

In this episode, we discuss the impending closure of Tiwait Point, the aluminium smelter based in Invercargill. The closure of the smelter could see as many as 2,600 jobs go in the Southland economy.  Based on the stats we're looking at, this could mean some Southlander's choosing to leave the region in search of work elsewhere.  We also go through other small towns which we recommend st...

In this episode, we discuss your different options for building a passive income. These include shares, property and term deposits.  We talk through how shares can earn you a higher net yield ... however the price you pay for the additional yield is the uncertainty of income from year to year.  Finally, we discuss our upcoming Live Podcast Tour, which is happening mid-September in: Chris...

In this episode, we discuss how Andrew negotiated to get a great deal off his latest purchase.  This included techniques like: attached a cheque for the deposit to the offer, making it clear how unfavourable the purchaser views the market to be, asking a friend to provide a low-ball offer, making a clean offer and asking for price reductions during due diligence.  We then discuss tactics...

In this episode, we discuss the latest property market stats for the month of June, as well as discuss what the REINZ House Price Index is, what it means and how it is calculated.  The difference between the median house price and the HPI is that the median house price is subject to fluctuation in the make up of what actually sold in any given month, whereas the HPI adjusts for what sort of p...

In this episode, we discuss the 5 steps you should take if you want to invest outside the city that you live in. In addition to this, we also discuss who that is and isn't the right fit for.  The 5 Steps are: Run data to find the right region or city Use yield and historic capital growth data to locate a suburb Find and Triage properties using one of the 3 methods we describe in the show Talk...

In this episode, we discuss how to find a good property accountant and the sort of things to ask them when you are checking them out.  In particular, some of the questions you can ask are: "Are you a property accounting specialist?" and "Tell me about your experience specifically in  property." We'd also recommend "how should I structure my properties to minimise tax and protect my asset...

In this episode, we discuss the concept of hydraulicing, which is where a vendor will sell a property at a price that is higher than what the property is actually worth based on market fundamentals.  An example of this is where a vendor would appear to sell a property at a high price, but would actually sell it to the purchaser for a much lower price. If the bank lends to the purchaser based...

In this episode, we discuss the difference between a mortgage deposit and the deposit that is to be paid to a vendor ... and whether you need to pay both.  In short, there is no double-up of deposit. The deposit you pay to your vendor makes up the deposit you use for your mortgage. In this case they are the same but for different purposes. We also mention JUNO magazine's upcoming property iss...

In this episode, we are joined for the last of our episodes with Manuel and Joy. These are two property investors from Lower Hutt. Here, Joy and Manuel share the real details of their mortgages, including how they expect to pay off their mortgage in 3 years, but currently have it structured as if they're going to pay it off in 27 years. They share why this is the case and how they have used a revo...

In this episode, we are once again joined by Joy and Manuel, 2 real property investors who are growing their own buy-and-hold portfolio. Here, the pair talk to us about how they are changing the ways that they think about property investment as they learn more, both through their own research and by doing the business of property investment.  We also mention our No Money Worries email course...

In this episode, we discuss how two real Kiwi investors went from 0 to 4 investment properties in less than three years. The special guests for this episode are Joy and Manuel from Upper Hutt.  The pair share the lessons learnt along the way and the hurdles they've had to overcome in order to build this portfolio ... as well as where they plan to take it within the next 5 years.  We also...

In this episode, we discuss the changes to the Residential Tenancies Act, which have just passed the Select Committee stage. This podcast is based on the report that has just been released by that select committee.  On the positive side, some technical concessions have been made for landlords, such as the definition of what constitutes a large landlord have been tightened.  On the other,...

In this episode, we discuss how a combination of Air New Zealand's credits and the government's quarantining of international arrivals in hotels is having a positive impact on Airbnbs. Air NZ's cancellation of overseas travel has given many New Zealanders flight credits which need to be used within two years. It's unlikely that the borders will open in time for  New Zealanders to use these cr...

In this episode, we are joined by Aimee Cloughley, who is a Client Relationship Manager at Opes. She specifically deals with handling the construction of investment properties and managing the due diligence process. Here, Aimee walks us through the major issues faced by investors while they are conducting due diligence on an investment property. We also mention our No Money Worries email course ,...

In this episode, we are joined by Aimee Claughley, who is a Client Relationship Manager at Opes. She specifically deals with handling the construction of investment properties and managing the due diligence process.  Here, Aimee walks us through the major issues faced by investors during construction and how to get around them.  We also mention our No Money Worries email course , which c...

In this episode, we discuss whether are properties are more expensive than existing properties. We also discuss the differences in LVR restrictions that have meant that existing properties require a lower deposit, compared to what they required under the RBNZ's LVR restrictions. In particular, we walk through a case study where we compared the price of a new property on Ruskin St in Addington Chri...

In this episode, we discuss whether investing in brand new, off the plans properties is right for you. The important truth is that investing in new properties is right for some people .... but not for others.  Here, we discuss that new properties are right for people who want a hands-off investment ... but are not right for people who want a hands-on or active investment that is focussed on r...

In this episode, we discuss the top 5 questions you should ask your mortgage broker when you are refining your interest rates. This comes from a recent conversation we had with a listener of the show who had 4 investment mortgages. These were all previously on interest-only, but on roll-over were switched to principal and interest.  We walk through what you should ask your mortgage broker to...

In this episode, we discuss the tax argument for interest-only loans, and show how using an interest-only loan (in one case study) could save an investor over $17k in tax over the long term.  This is in the instance where the investor has a $300k personal mortgage to pay down and can choose whether to direct the cashflow from their property towards their personal mortgage, or against their in...

In this episode, we discuss a recent Tenancy Tribunal case where a tenant had to pay their landlord $29,600 for meth decontamination. This was made up of $18k in cleaning costs and another $11k in other related costs.  We walk through what happened during the case and what you can learn as a landlord about the need for meth testing in the future. We also mention our No Money Worries email cou...

In this episode, we discuss the history of house prices, including how quickly house prices have doubled in the past. This includes highlighting the period between 1980 and 1984 where house prices doubled in just 4 years.  This was part of a debate Andrew and Ed held last week as part of a discussion into whether house prices will continue to increase into the future. We also mention the webi...