The Property Academy Podcast

In this episode, we discuss a couple of recent stories that have developed in the media where young first home buyers were on the wrong end of a sunset clause.  A sunset clause is typically used in a sale and purchase agreement to protect the buyer of a property that has not been built yet. Using this clause, if a developer has not completed the build by a certain date, then the purchaser has...

In this episode, we discuss the proposed changes to the Residential Tenancies Act, which are being brought forward by the Labour government. The proposed changes include: Revoking the ability for landlords to request a tenant to vacate with no cause (currently 90 days) Limiting rent increases to once every 12 months, rather than once every 6 months Taking away the ability for landlords to solicit...

In this episode, we discuss the 6 things that can go wrong with investing in brand new properties and how to solve them. 1. Overpaying for a property – solve it by getting a valuation before going unconditional 2. Not being able to secure a tenant because of too may properties coming on market at the same time – solve it by investing in a staged development 3. Can't get started straight...

In this episode, we discuss how long it takes to sell a property in different regions around New Zealand, along with a few surprising insights for property investors around New Zealand.  The West Coast region, for instance, has a total of almost 4 years worth of properties already on the market. No additional West Coast properties could come on the market, and there would still be properties...

In this episode, we discuss whether you should not buy property, or put off that decision because of Coronavirus. In general, the answer is no. While the media has made a big deal of the potential impacts the likelihood of a widespread outbreak is still low-to-medium in New Zealand. On top of that, we expect a decrease in the OCR, which should stimulate spending and help property buyers and homeow...

In this episode, we discuss why it is preferred to have a mix of owner-occupier and investors within your development.  This is generally for three reasons: You want to sell your property to an owner-occupier in the future, who is likely to be more emotionally invested than an investor, so you want a property that is going to appeal to an owner-occupier When the properties are finished, you d...

In this episode, we discuss the four different titles that are used in the New Zealand property market. These are: Freehold, also known as fee-simple. This is the most common type of ownership in New Zealand where you own the land and you are generally free to do what you like with it, subject to any caveats, covenants, or local bylaws Leasehold – this is where you own the building on the lan...

In this episode, we discuss that it is often thought that smaller towns will deliver yields that are x2 as high as bigger cities. While that might be true for gross yields, this is generally not true of net yields.  That is because smaller town properties often have higher costs as a proportion of the rent. For instance, if you were to buy two properties that are exactly the same, one in a sm...

In this episode, we discuss the 3 different types of property trading strategies you can use.  Previous listeners have asked whether renovation is the same thing as trading. The truth is that renovation is a type of trading, but there are other types of trading also used by property investors. These are: Renovating existing properties and selling them back on to the market Buying a property a...

In this episode, we discuss a report released a few years back by the Financial Markets Authority, with research conducted by Colmar Brunton.  The report looking into what regular Kiwis wanted out of their retirement. The report found that: 86% of people surveyed wanted to have enough money to meet their every day to day financial needs and fund lifestyle aspects such as travel or a new car A...

In this episode, we discuss bank lending on apartments, and the minimum square metre size requirements to get a home loan.  Each bank has slightly different lending regulations, but as of the publishing date the minimum standards are generally: 40 metres squared – KiwiBank and ASB 45 metres squared – ANZ 50 metres squared – BNZ 60 metres squared – TSB A bank may also not lend on you...

In this episode, we discuss which suburb prices grew the fastest in the Auckland property market over the last 20-odd years.  We discuss the trends in house price growth, specifically identifying that suburbs in the inner-city tend to grow the slowest on average because they are full of apartments, which don't grow as quickly. There are hot spots in the inner-west suburbs, and that tends to b...

In this episode, we discuss 8 places we get our data from so we can make better property investment decisions. The 8 sources are: Statistics NZ for broad demographic data, showing changes in New Zealand's population Figure.nz for nice graphs that we can use in presentations Infometrics for population-based data REINZ for sales data Core Logic and QV for valuations data News Articles from Stuff, th...

In this episode, we discuss the concept of buying property with "no money down". This is where you are able to use the equity within your own home to secure the deposit for an investment property.  This means that you will not have to put in any cash as the deposit to purchase an investment. Popular as part of property investment infomercials from our child-hood, we discuss how this property...

In this episode, we discuss the Reserve Bank's decision to leave the OCR unchanged at a record low of 1.0%.  There were 3 factors identified in the decision: An expectation that households will spend more given that interest rates are extremely low already Increased spending signalled from the government through the recently announced $12 billion infrastructure package Improving terms of trad...

In this episode, we discuss the three ways to make money in property investment. These are: Capital gains – changing market conditions increase the value of your property. This happens slowly but it is consistent. That is why capital gains will often give you the greatest gains, even though you don't have control over it.  Instant equity – this is where you actively do something to the proper...

In this episode, we review the book "20 Properties in One Year" by Graeme Fowler. In the book, Graeme talks about yield v.s. capital growth, and we discuss this dynamic.  We also discuss some of the key principles discussed in the book. We also mention the property investor quiz , where you can get an instant answer about whether you are in a position to invest, based on your numbers right no...

In this episode, we discuss the crucial elements of a property investment cashflow statement and compare 2 different cashflow statements for the same property – one for a standard residential lease and the other as an AirBNB. The core costs on any cashflow statement are: interest costs property management rates maintenance accounting  insurance body corporate / residents association fee...

In this episode, we discuss 7 things you can look for when choosing to purchase an investment property from a developer.  It's increasingly popular for investors to add new properties to their portfolio. You can do this either by using a property coach, or through a property developer. Here are the 7 things to look for if you decide to do it yourself: If they are in a secure financial positio...

In this episode, we discuss why you need to make more money ... and why building your wealth is not a bad thing.  Some people in modern society think that building wealth is a bad thing ... something that's not desirable. We suggest thinking about your long term goals and considering whether you'll be able to achieve them without building your wealth – and if not whether you can do somet...

In this episode, we discuss the 7 instances where landlords insurance can protect you. These 7 instances aren't available through all insurance policies, but many are common between them: Hidden gradual damage Loss of rent from uninhabitable due to an earthquake or act of god Unpaid rent arrears from your tenants Loss os rent if you have had to evict your tenants or if they have left without notic...

In this episode, we discuss the seven things you should look for within a rental property. These are:  There is a good mix of capital gain and cashflow You need to decide who your end buyer is going to be when you plan to sell the property  That the property is in a high population area That there are amenities around the property, like jobs, parks, schools and pools The price of the pro...

In this episode, we discuss what the Rule of 20 is in retirement planning and how it works.   This is a rule of thumb, which says that once you decide the level of retirement income you want, multiply it by 20 and that is the number of freehold assets you need to produce the income you want.  That means if you want to live on $100,000 a year, you'll need roughly $2,000,000 worth of...

In this episode, we discuss all the different types of valuations. These include: CV – Council Value / RV – Rateable Value / GV – Government Value e-value  Registered Valuation Sale Price, and Real Estate Agent Appraisals We also discuss how these valuations impact your ability to get lending from the bank for the property you want to buy, and also how to use these valuations to gro...

In this episode, we discuss what happens if a natural disaster hits your property and how the Canterbury earthquakes have impacted building standards across the country.  We specifically discuss the differences between TC1, TC2 and TC3 land and what that means in terms of the risk of liquefaction on the ground beneath your property. Risk-based insurance pricing also makes a feature and we dis...