The Property Academy Podcast

In this episode, we discuss capital gains taxes within New Zealand and the existence of the bright line test. Although we don't officially have a capital gains tax within New Zealand, we do have a capital gains tax by another name – the bright line.  The bright line says that any capital gains made on a property within the 5 years of owning a property are treated as income if the property was...

In this episode, we discuss what Opes Property Coaches actually do within the process of getting started in property investment, nz .  Specifically, Opes has a 3-step property coaching programme that helps people get started in property investment: Discovery Session – Find out exactly where you are now, and where you want to go (your goals). Determine the resources you have available to...

In this episode, we discuss several conversations Ed has recently had with his cab drivers about property investment nz , specifically about age. This is important because a bank may not be willing to lend money to someone nearing retirement because if that person was to stop working then they may not be able to afford their mortgages.  For instance, say that a person was 65 and borrowed $500...

In this episode, we give 3 case studies of different situations. These are all real numbers given by real people through the Opes Property Investment Quiz . The quiz asks 7 questions about your personal situation and then gives an indication about whether you will be able to invest, both from an equity and servicing stand-point. 

In this episode, we walk through the 6 exemptions to the LVR rules, which allow you to borrow above the standard lvr restrictions set by the reserve bank. These are:  Not all bank lending needs to be within the LVR rules – only 80% of owner-occupier lending and 95% of investor lending needs to fall within the LVR rules. This means that 20% of owner-occupier lending and 5% of investor len...

In this episode, we discuss the Real Estate Institute of New Zealand's latest monthly update. 10 out of 17 regions reached record house prices, and the median house price in New Zealand was up $22.5K up on last month, to a record high of $630K. This is fantastic news for property investors and owners of property, as it means they will have more wealth in their portfolios on average. There is also...

In this episode, we are joined once again by Shelley Funnell from Henderson Reeves, a mid-tier law firm based in Auckland and Whangarei. And in the show we discuss trusts. Shelley shares the stat that there are an estimates 500,000 trusts in New Zealand ... but many of them may not be necessary.  During the show, Shelley shares the 3 reasons why people typically have used trusts in the past,...

In this episode, we discuss buying property off the plans – which is where you purchase a property and commit to buying it before it has actually been built.  If you haven't heard about buying property off the plans then this might sound really scary. However, there are some really good reasons why you might purchase an investment property off the plans:  First of all, when you purc...

In this episode, we discuss a few of the things that can go wrong in a property investment deal, which a solicitor would usually pick up on.  Shelley Funnell is the guest on the show, and she shares one story regarding properties bought by a permanent resident, who had recently moved back to New Zealand. Because this purchaser hadn't been resident in New Zealand for 12 months, he wasn't legal...

In this episode, we discuss the key clauses you can use in a sale and purchase agreement when buying property in New Zealand.  This is important for NZ property investors because DD clauses can be used to put a property on hold to investigate the property before making it go unconditional. This means that you can agree the properties price in principle (and have the right to purchase the prop...

In this episode, we are joined by Shelley Funnell who is a solicitor and HendersonReeves in Auckland. During the show we discussed the new sale and purchase agreement that was introduced on the 6th December 2019. The Real Estate Institute of New Zealand (REINZ), Auckland District Law Society (ADLS) sale and purchase agreement is the standard S+P that is used to buy and sell property in NZ.  T...

In this episode, we discuss refinancing, which is the mechanism property investors can use to leverage off their existing properties in order to grow their portfolio.  There are to ways to refinance your investment property: Refinance in order to increase your lending on a property Refinance in order to change banks (from one bank to another)

In this episode, we discuss three things that stop people from investing in property .  Personal reasons Fear and worry. For example, the worry that as the size of your portfolio increases, there is a greater risk of vacancy. Lack of Time. If you're not out there looking for new properties then you are less likely to take action on one.  Lack of Ambition. If you don't have a property coa...

In this episode, we discuss 6 events that have occurred over the last 20 years that have impacted the NZ property market, with a particular focus on the Auckland property market .  Those 6 events are: 1. Leaky Homes Crisis 2. 67 Finance Companies Fell Over 3. Christchurch Earthquakes 4. LVR Restrictions Were Introduced 5. Brightline Tests Were Introduced 6. Introduction of the Internet and th...

In this episode, we discuss whether there really is a housing shortage within New Zealand, and particularly within the Auckland property market. In pure economic terms, there can never be a shortage of any good in a free market, so long as demand and supply don't significantly change. Under these conditions, if there are more buyers than sellers in a market then those buyers will bid the price up....

In this episode, we discuss why your house isn't an asset, particularly when you begin to plan your retirement. The conclusion we come to is that the reason your house isn't an asset is that it doesn't produce any income. Sure, you can build wealth within your property, but you can never use it or unlock it unless you borrow against that wealth to pull the cash out to get started in property inves...

In this episode, we discuss Mount Wellington, a suburb in Auckland's property market . Our belief is that Mount Wellington has a very strong property market and makes a good hunting ground for good quality investments. The median house price in Mount Wellington increased at a compounding rate of 8.35% between January 2000 and August 2018. And of the top 20 suburbs that grew the fastest over that p...

In this episode, we attempt to dispell the myth that property investment is undesirable for New Zealand (or any country). There are several reasons why we believe that property investment is good for the country: 440,000 of New Zealand's 525,000 rental properties are supplied by Mum and Dad investors (the private market). Every additional property that is supplied by private investors is another h...

In this episode, we discuss the OneRoof Property Report for the last quarter of 2019. This report sums up how the property market has operated over the last year in New Zealand.  Ed's top takeaway is that although the property market has faced so many changes in the last year: Ring-fencing laws changing, the Healthy Homes Act implementation, a potential capital gains tax being introduced and...

In this episode, we discuss 5 reasons why it is a good idea to invest in the main centres when beginning your journey into property investment in NZ . These are: The economy and job market is more diversified in the larger centres The main centres tend to have higher population growth, even as a percentage. This helps to sustain housing demand, which pushes prices up. There is a larger pool of pot...

In this episode, we are joined by Dennis Schipper, a consultant at Opes Partners. Dennis has a lot of experience in property investment nz .  Here, we discuss 6 strategies you can use if you've got a property in mind, but haven't got the ability to get the lending. This include: Get your house revalued (or do minor renovations to your property to increase the value of your owner-occupier home...

In this episode, we discuss the Reserve Bank of New Zealand's recent comments on the banks' test servicing rates. As a recap, these test rates, are the interest rate that the bank will use to test whether you can afford a mortgage or not for your investment property (or any other property you are looking to purchase). The RBNZ has said that "we may be at a turning point" in regards to these test r...

In this episode, we are once again joined by Di Foster, property investor and leadership coach. We discuss that women need to up their investment game and invest more in property . According to one study, women retire on 50% less than men and globally have lower financial literacy. These are the sort of stats that made Di want to get stuck into property investment and make a change. 

In this episode, we are once again joined by property investor and leadership coach, Di Foster. Di initially looked at investing in the Uk property market. However, there were several reasons that gave her pause. Here, Di compares the two markets and the yields she was seeing in the UK market, before she eventually decided to invest in NZ.

In this episode, we are once again joined by property investor and leadership coach, Di Foster. Here, Di compares DIY investing (going at it alone) with using an expert property investment coach.  Although Di has quite the personality, she talks about how she and her husband weren't the sorts of people who would go out and buy a house on their own and get it rented. However, Di talks about so...