The Property Academy Podcast

In this episode, we discuss how BNZ is no longer offering pre-approvals to non-bank customers. This has some far-reaching implications for property investors and mortgage brokers.  It likely means that investors and homebuyers will find the property they want first and sign it conditional to finance before taking the property to the bank. This means that the bank will prioritise the deal.&nbs...

In this episode, we discuss why properties are sometimes more expensive when you buy a property through a property coach than if you look on a developer's website.  The reason this is sometimes the case is that developers will exclude some parts of the property from that price. For instance, you might see a property for $499K, but it might exclude the driveway, landscaping or the letterbox. I...

In this episode, we discuss how to figure out what you want in a property investment strategy. Andrew and Ed go through a model that Opes has created to think about the sorts of needs you have as an investor.  It is based on a triangle model with the most important property investor needs at the top, and the functional needs near the bottom. Here is the link to the model that was discussed th...

In this episode, we discuss the top problems and issues that investors usually come across when investing in property (and how to solve them). We discuss potential solutions and risk mitigation for each of the following: Issues with lending, broken down into – Interest rates rising increasing your expenses, not being able to get borrowing from the bank, and not being able to have interest-only loa...

In this episode, we discuss ringfencing, what it is and how property investors can combat these recent tax changes.  From April 2019 property investors haven't been able to claim rental property losses against their income. Previously investors were able to claim a tax refund on any losses made by their rental property. That meant that if the property was negatively geared the tax could make...

In this episode, we discuss depreciation. Depreciation is when the value of the things inside your home gradually decrease in value. It's a cost to you as an investor, but you don't actually pay for it in cash. This means that you can use depreciation to decrease the amount of tax you pay to the IRD each year.  Since the 2011-2012 financial year investors have no longer been able to claim dep...

In this episode, we discuss the restrictions put in place on foreign residential property buyers from the Overseas Investment Act. Under the current regulations, you need to be either an Australian, Singaporean or New Zealander in order to buy property within New Zealand. We also discuss the Epic Guide to Mortgages , a 9,500-word guide that teaches you how to get a mortgage and pay it off more qui...

In this episode, we discuss interest-only loans – how to get them, how the banks treat them in today's market and when investors should use them. Many investors today question whether they can still get an interest-only mortgage in today's market. The answer is yes. But, the interest-only mortgages of today are different from those of the past.  Previously, it was possible to secure a 30-year...

In this episode, we discuss how to tell if the property investment advice you are receiving is bad advice. This comes off the back of a recent client story, where our property coaching client received poor accounting and portfolio structuring advice from their brother. Although a capable small business accountant – the brother in question was not a tax or property specialist, which was causin...

In this episode, we discuss how to choose a property coaching company. Every property coaching company is likely to recommend and promote a specific strategy for their clients. Some will promote buy and hold strategies, others focus on renovation and others, still, on development.  We suggest that first-time property investors looking for a property coach should look at other clients who are...

In this episode, we discuss that contrary to popular belief you don't need to buy as many houses as you can. You don't need to go out and invest in 80 properties, you might be fine with just 5. We discuss the different approaches to building a property investment portfolio and run through a case study of a couple who are able to achieve their financial goals over 20 years by investing in just 3 pr...

In this episode, we discuss how to spot a slump in the property market, with specific reference to Christchurch and the Canterbury earthquakes. Our key takeaway is that although we can all identify what a slump looks like in the text books, a real property slump (especially in the main centres) looks less like a downturn and more like a prolonged stagnation / flattening of property prices.  W...

In this episode, we discuss whether there is an oversupply of property in Christchurch – with specific reference as to whether Christchurch might turn into a 'donut-city', where the centre of the city lacks development.  We make specific reference to the Canterbury earthquakes. These are the primary cause for higher development in the suburbs and satellite towns than in Christchurch cent...

In this episode, we discuss the Christchurch suburb of Addington and whether we believe it is a good place to invest.  Addington has had the 3rd fastest house price growth of any Christchurch suburbs since the turn of the century. The only two suburbs that grew at a faster rate were the wealthier suburbs of Strowan and Fendalton. These suburbs wouldn't be appropriate for investors to necessar...

In this episode, we discuss a question sent in my another listener, which says: "I already have an investment property in Whangarei, should I buy another one there, or sell my existing investment property and buy in the main centre?" Often the main centres aren't as expensive as one might think. Median sale prices can be misleading as your investment property doesn't have to be the median property...

In this episode, we discuss whether there is such a thing as cashflow positive or negative properties. This question came in from a listener of the show. We agree that there is no such thing as a cashflow positive or negative property ... sure there are high yielding properties, but whether a property produces cash or not is based on how you have structured your investment. If you borrow with 100%...

In this episode, we discuss one of the key fears that stops people from investing in property – the market. Or, rather, fear that the market is going to crash and that property prices will drop suddenly and significantly. We compare economist predictions from January 2009 with real data about how the property market performed and show that generally the hysteria often seen in newspapers rarel...

This is the final episode where are joined by Eugene Bartsaikin from Twine Financial Advisers – and we discuss split banking. This is where you use multiple banks as part of the structuring of your lending strategy.  The key benefit of using multiple banks is that, if used correctly, you:  may be able to borrow more will have more control over your assets will have more freedom in t...

In this episode, we are once again joined by Eugene Bartsaikin from Twine Financial Advisers. Together, we discuss two case studies of Eugene's clients who have had lending strategies created for them.  The first is a Christian couple who were regularly giving to the church. Eugene identified that their long term ambition was to be more generous and give more to their community. Eugene encour...

In this episode, we discuss what mortgage brokers mean when they talk about structuring your mortgage. Structuring your mrotgage encapsulates everything about your mortgage and how it is set up. This includes: Whether your loan is on Principal and Interest or Interest Only The repayments you make to the bank Your interest rate and whether you are 'rate splitting' which bank you are with The term o...

In this episode, we discuss Break Fees in regards to mortgages . A Break Fee is the cost that you pay if you have fixed your interest rate on your mortgage for a period, and then you restructure your mortgage before that fixed period has finished. This means you are breaking your contract with the bank.  Bank's will allow you to do this for a fee, and they charge you the cost that they incur...

In this episode, we are joined by Eugene Bartsaikin from Twine Financial Advisers. Eugene is a lending specialist and helps investors structure their lending and financial lives to achieve their goals.  During the show, we discuss that banks don't treat investors differently.  When banks lend to investors they are required by the Reserve Bank to hold on to more capital than owner-occupie...

In this episode, we discuss The Barefoot Investor book. It claims to be the "only money guide you'll ever need", but does it measure up to the claim?  We review the three key takeaways from the show: How to set up your bank accounts to make it easy to manage your money ... without a budget or excel spreadsheets The author's opinion on the Australian property market, as well as the differences...

In this episode, we answer a question that came from the Property Investors Chat Group NZ on Facebook. In the question, the investor had co-bought a property with her aunt, with the aunt putting in the deposit. The aunt's name was on both the mortgage documents and the title of the property. Unfortunately, the family member has had mental health issues, which has caused serious tension and has imp...

In this episode, we discuss how to set financial goals in 2020. We outline a 5-step process: What – figure out what you want to achieve When – decide when you want to achieve it by How Much – calculate how much that goal is going to cost Remind – set up reminders of your goals that you'll see frequently Get Accountable – tell a friend about your goal to make sure you're account...