The Property Academy Podcast

In this episode, Andrew and Ed feature on the NZ Everyday Investor Podcast, which is hosted by Darcy Ungaro. Darcy recently asked us to come on the show to talk about forces for good and bad in the property market.  In part 1 of the 2 part series, we talk about the forces for bad, the things that could typically pull property prices down on average. During tomorrow's show we'll talk about the...

In this episode, we discuss why first and second home buyers often can't buy a do-up and why that presents an opportunity for property investors. A common misconception is that when first home buyers purchase a do-up that they can borrow the renovation costs as well ... because the property will soon be worth more. That's not the case, you cannot borrow renovation costs, unless you already have mo...

In this episode, we discuss compounding growth and why small differences in capital growth rates quickly add due to the compounding nature of property price growth.  We also discuss how the combination of compounding annual growth in property prices and rents makes properties more profitable over time, which is why it is important to continue to hold property for as long as possible. We also...

In this episode, we discuss how the property market will operate under Level 3, and how cour advice has changed now that we are moving through to level 3.  We are finding that there are good deals available in the market and that developers are offering discounts in order to move more of their properties. We don't however anticipate that this is going to stay around for very long.  We al...

In this episode, we discuss different ways to live off your property portfolio. There are four ways we discuss, each with their pros and cons: Using a reverse mortgage to live off the equity within your properties Using a principal and interest mortgage to pay down debt to create a decent rental yield you can live off Buying multiple properties, selling half and paying off the mortgage on the rest...

In this episode, we discuss how you can go from 2 properties to 5 properties and beyond. At some point, many investors hit a wall and the bank stops lending to them. No lending = no new investment properties.  But, unless you understand why the bank isn't lending you more money, it's very hard to fix it. Worst of all if you keep applying for lending and get denied your credit record will cont...

In this episode, we discuss how to pay your mortgage off faster so that you can get in the position to invest in property. During the show we give the example of a first home buyer who has purchased a $500,000 property with a 20% deposit, we then show how they can reduce the time it would take to be able to buy a second investment property from 4 years, to 3 years and then down to 2 years. We also...

In this episode, we discuss whether you should buy an investment property from Golden Homes.  Golden homes sits at the slightly premium end of the market relative to other competitors such as GJ Gardiner, Mike Greer and Stonewood Homes, which the price reflects. They have some initiative finance models, that makes the purchase price cheaper than they otherwise would be, which provides benefit...

In this episode, we discuss how to use other people's money to invest. Essentially, this is the concept of leverage. When you invest in property, you borrow money from a bank, but any returns made on that property are yours to keep.  If you are keen to use the calculator mentioned in the show, you can find it here on the Opes Partners webinar. And if you are keen to learn more about property...

In this episode, we dig into some of the results from a survey we are currently running that digs into the real reasons why people invest in property. The top 4 reasons Kiwis invest are: retirement, passive income, returns / grow wealth and to get rid of money worries.  Got 2 mins? Please take this property investors survey , so that we can get a sense of the type of content you will find mos...

In this episode, we discuss how real investors are feeling about the property markets' prospects during the Covid-19 induced shutdown.  This data comes from both a webinar that we held last week, as well as data collected from the Auckland Property Investors Association. If you'd like more property investment content, be sure to follow Opes Partners on Instagram . You can click the link, or f...

In this episode, we discuss the areas of New Zealand that are most at risk from an onslaught of Airbnbs converting into residential tenancies.  The data is in and suggests that McKenzie district (in south Canterbury), followed by Queenstown Lakes, then Thames-Coromandel are the most susceptible, while the main centres, Taranaki and Manawatu-Whanganui are the least at risk. This is show is a p...

In this episode, we discuss whether Auckland or Christchurch will weather the Covid-19 storm better in terms of property prices.  This was the most popular question in our recent webinar that considered all of New Zealand's regions, considering which would be the most resilient property markets.  Our view is that Auckland, as the centre of the most jobs and economic activity, will always...

In this episode, we discuss the concept of de-gentrification, where an area with significant economic activity begins to lose it. We apply this concept to New Brighton and discuss what investors could look for within suburbs and areas to invest. We also mention our property investors webinar , which is coming up on 14th April at 7pm. During this webinar, we're going to cover how Covid-19 will impa...

In this episode, we discuss whether Ultra Fast Broadband could be the savings grace for New Zealand's small-town property markets.  Our conclusion is that the benefits of UFB (and the internet in general) will most likely be targeted towards smaller cities as opposed to smaller towns. Listen to the episode to find out why.  We also mention the property investment webinar we are holding t...

In this episode, we answer a listener's question, which stems from an earlier episode we recorded. In that episode (#208) we discussed three speculative scenarios, where increases to debt availability would lead to higher house prices.  Paul (the listener) asked why increased availability of debt would lead to higher house prices as it wouldn't change the fundamental value of the property.&nb...

In this episode, we discuss how the property market is operating under the Covid-19 induced shutdown. This is based on real data collected by Tony Alexander of real estate agents and mortgage brokers who are working on the ground at this time. This episode covers both residential and commercial property and how the two markets differ from one another.  We also mention the Opes Partners Instag...

In this episode, we discuss what to look for before you purchase a property, and in particular what to look for if you want to add value to the property.  We start off by recommending QV , a New Zealand based property website that allows you to check data about any suburb in New Zealand, including seeing what properties have sold in a suburb and for how much. This is very useful when consider...

In this episode, we discuss a recent blog written by Ed with 3 speculative scenarios that would make the property market heat up. These are: The maximum mortgage term lengthening from 30 to 35 or 40 years The bank's test interest rate falling from 7% to 5%, and The LVR restriction for investors of existing properties relaxing to 75% In each scenario, we also walk through the quantifiable impact th...

In this episode, we discuss the data you should be looking at based on your property investment strategy.  renovation – purchase price and how the market is moving (up or down) over the short term Cashflow / yield – interest rates, median rents and the rate at which rental payments are made to you personally long term buy and hold – interest rates, purchase price and long term fundamentals We...

In this episode, we discuss the steps between going unconditional on a property and settlement. These steps include: paying your deposit into a solicitor's trust account. You solicitor will collect the funds to execute the transaction  make additional payments to your developer if you are using a progressive payments model. You don't need to do this if you are using a turn key model&nbsp...

In this episode, we discuss what happens if you come to settle a property, and it is worth less than the purchase price? This is most important for investors who have signed an unconditional contract to purchase a brand new property that is currently under construction. If we do go through a period of economic downturn due to the Coronavirus, then there may be a situation where some investors come...

In this episode, we are joined by Peter Norris from Lateral Partners to discuss the Mortgage Holiday Scheme that is currently available as part of the economic response to the Coronavirus.  Property owners need to remember that the mortgage holiday is not really a holiday at all, but rather a deferral. The payments will still need to be made, but you make them at a later date. Remember too th...

In this episode, we discuss how median rents in New Zealand hit a record high in February 2020. In that month the median rent hit $520 per week, up from $495 the year before.  That equates to a 5.1% increase over 12 months, compared to general inflation of 1.6%. That means that rents are increasing at a faster rate than all other goods. That's bad news for tenants as more of their income will...

In this episode, we discuss how the Coronavirus might change your investment strategy. The decrease in interest rates have two effects: They decrease the return savers get through term deposits They increase the return property investors get through lower borrowing costs It is not likely that property investors can get a higher cash return from their deposit as opposed to keeping their money in th...