The Property Academy Podcast

The Property Academy Podcast

By Opes Partners
The Property Academy Podcast is a daily show that gives you insight, analysis and strategies for how to get the most out of the NZ property market.

That's whether you're an existing or aspiring property investor, you want to get into your first home, or you're just interested in the property market.

Andrew Nicol and Ed McKnight host the podcast. Andrew is the Managing Partner of Opes Partners and a prolific investor himself. Ed is an economist. Both Stuff and Juno Investment Magazine have previously published his analyses.

www.opespartners.co.nz/investment/property-investment
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Which Auckland Suburb Prices Grow the Fastest? | Ep. 165
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 be true for most central Auckland suburbs. On the other hand, suburbs on the outskirts of Auckland tend to grow more slowly.  We also go through individual suburbs to highlight the amazing property price growth Auckland has had over the last few decades.  To view the interactive map discussed in the show, be sure to go to our report.
09:47
February 23, 2020
8 Ways to Make Better Decisions Using Data | Ep. 164
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, the NZ Herald and from industry publications Reports, from the likes of the world economic forum and the FMA Anecdotal evidence All of these sources put together help us to build a picture of where we should invest, and what sorts of properties should be recommended to every day Kiwis.
12:03
February 22, 2020
How to Buy Property With No Money Down | Ep. 163
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 investment strategy actually works and how to make the most of it.  We also mentioned our equity calculator, where you can see how much use-able equity is available within your property. 
09:55
February 21, 2020
Update: The Reserve Bank Holds the OCR at 1.0% | Ep. 162
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 trade with our trading partners – which signals that exports are going well. All of these factors are considered inflationary and are having a positive impact on economic growth. Decreasing the OCR further would likely add more inflationary pressure than the Reserve Bank would like, given that it is currently meeting its inflation and employment targets.  We also discussed the Epic Guide to Mortgages, this is a 9,500-word guide which teaches you both how to get a mortgage and pay it off in today's market. 
07:58
February 20, 2020
The Only 3 Ways to Make Money in Real Estate | Ep. 161
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 property to create an instant initial equity gain. This can be through renovations that add value or through buying the property under its value. This gives you an initial equity hit, but it is not ongoing. It will bring you more value than cashflow, but less value than long term capital gains. Cashflow – this is where your property earns money each week. This is usually a small amount after expenses are taken into account and over the long term it is likely to bring you the smallest returns from the three ways to earn money through property.  We also mentioned our property investor quiz, this 7-question quiz will show you whether you are financially in the position where you can invest. 
11:42
February 19, 2020
Book Review – Graeme Fowler, "20 Properties in 1 Year" | Ep. 160
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 now. 
13:00
February 18, 2020
Crucial Elements of a Cashflow Statement and How Much It Actually Costs to Own a Rental Property | Ep. 159
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 letting fees Airbnbs will also have internet and electricity, as well as higher maintenance and interest costs as you will need to provide additional chattels within the property.  We also talk about the property investor quiz, this 7-question financial quiz will give you a full report on your numbers, as well as a 'yes', 'no', or 'maybe' answer as to whether you are in a position to invest in property right now. 
13:15
February 17, 2020
7 Things to Look For When Choosing a Developer to Purchase From | Ep. 158
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 position so they don't fall over throughout the project What their quality of finish of their previous builds are like, and if they are consistent with the plans Whether they are good to deal with and are likely to come to the party if a disagreement occurs Whether their building design is diverse. You don't want them to flood the market Whether their builds finish on time, so you aren't lumped with higher interest costs if using a progressive payments model Whether their company has been in business for a while, and If their company has a good reputation  We also mention the property investor quiz. This 7-question quiz can give you a yes, no or maybe answer about whether you're in a position to invest in property. It will also generate a full report about what your numbers mean. 
11:45
February 16, 2020
Why You Need to Make More Money | Ep. 157
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 something about it.  We also mention the Property Investor Quiz, these 7 questions will give you an indication of whether you are in a position where you can invest in property – along with a full report about what your numbers mean. 
08:17
February 15, 2020
7 Ways Landlords Insurance Can Protect You | Ep. 156
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 notice Malicious damage caused by tenants Theft of chattels Meth contamination We also discuss the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no' or 'maybe' answer as to whether you are in a position to invest in property right now. 
10:43
February 14, 2020
7 Things to Look For In a Rental Property | Ep. 155
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 property and whether you're getting a good price relative to its market value That it fits within your strategy Can you hold the property long term These are the 7 things to look out for within your rental property and you can use this as a checklist when looking for your next rental property.  We also discuss our property investor strategy quiz. This 6 question quiz will recommend and give an indication of the right strategy for you.
09:35
February 13, 2020
The Rule of 20 in Retirement Planning | Ep. 154
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 assets to produce that level of income every year in perpetuity. That's based on your portfolio producing a 5% gross yield every year.  We also mention our property investor quiz. These 7-questions will give you an indication about whether you're in a position to invest and gives a full report based on your numbers.  
09:03
February 12, 2020
Valuations – What They Are and How They Differ | Ep. 153
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 grow your investment portfolio.  If you're interested in investing yourself, take our property investor quiz. This gives you a yes, no or maybe answer as to whether you are in a position to invest in property right now. 
14:05
February 11, 2020
What Happens If Canterbury Has Another Earthquake? | Ep. 152
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 discuss how this can be used as a proxy for the risk of your property.  If you are keen to find out whether you're able to become an investor, why not take our property investor quiz? This 7-question quiz will give you an indication of whether you're in a position to become a property investor.
11:53
February 10, 2020
Update: BNZ Is No Longer Offering Pre-Approvals to non-bank Customers | Ep. 151
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.  It is also an indication of strength in the banking and property sector ... if the bank is turning down potential business it is likely because they have been inundated with applications, suggesting that there is even more activity in the market. It also means it is more likely that mortgage brokers will become more important as prospective purchasers consult them for advice.  We also mentioned the Epic Guide to Mortgages, a 9,500 word guide that teaches you how to get a mortgage and pay it off faster in 2020.
09:56
February 9, 2020
Why Are The Properties Property Coaches Show Me More Expensive Than Developers? | Ep. 150
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. If you wanted it all included, it might cost $525K.  A property coach, on the other hand, will only list the price that is all-inclusive and ready to rent.  We also mentioned the Epic Guide to Property Investment, this is our 16,000 word guide that will teach you how to smash your property investment goals in 2020
06:46
February 8, 2020
Your Property Investment Strategy – The First Crucial Steps | Ep. 149
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 throughout the show.  You can also take this quiz to figure out which strategy is right for you based on this model. 
11:28
February 7, 2020
The Top 5 Problems With Investment Property & Solutions | Ep. 148
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 loans renewed Vacancy and tenancy problems – what if your rental property is turned into a P-lab or attracts unsavoury tenants? Maintenance and unexpected costs The Market – what happens if the market goes down and stays down?  You – What happens if you lose your job or are forced to sell the property early? We also discuss the Epic Guide to Mortgages – this is our 9,500-word guide that teaches you how to get a mortgage and then pay it off more quickly than you naturally would.
13:38
February 6, 2020
Ringfencing – What Investors Need to Know | Ep. 147
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 it cheaper to own a rental property.  This is no longer the case, which means that owning negatively geared investment properties are more expensive.  Investors have three options to combat these higher costs: a) invest in positively geared properties, b) increase the rent charged on the rental properties, or c) attempt to decrease expenses by restructuring and refinance investment debt. We also mention the Epic Guide to Property Investment. This is 16,000-word guide that teaches you the fundamentals of how to invest in property. 
11:34
February 5, 2020
Depreciation – Everything Investors Need to Know | Ep. 146
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 depreciation on the value of their building (if it has a useful life of 50 years or less). However, they still can claim depreciation on the chattels within the building.  Here, we discuss the different types of depreciation and what can and can't be depreciated. This is a lead up to the next episode where we talk about ringfencing.  If you want to learn more about investment property, then why not check out our guide to how to get a mortgage? It's a 9,500-word guide called the Epic Guide to Mortgages and as well as helping you get one it will also teach you how to pay it off faster.
12:22
February 4, 2020
Overseas Investors Getting Into the Property Market | Ep. 145
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 quickly than you usually would
08:00
February 3, 2020
Interest Only Loans – What Investors Need to Know | Ep. 144
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 interest-only mortgage. Now, the maximum is 5-years attaches to a standard principal and interest table loan.   We also mentioned the Epic Guide to Mortgages, a 9,500-word guide about how to get a mortgage and to pay it off faster.
15:02
February 2, 2020
How to Tell If the Advice You're Getting Is Bad Advice | Ep. 143
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 causing our client's property portfolio to be costing more than it should have. Lastly, we mentioned our Epic Guide to Mortgages. This is a 9,500-word guide that teaches you how to get a mortgage and then pay that mortgage off.
11:09
February 1, 2020
How to Choose a Property Coach | Ep. 142
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 using the property coaches and look at the strategies those clients are implementing. Looking at what other clients do (and the results they are getting) is the best indication of the strategy that might be promoted to you.\ We also discussed our Epic Guide to Mortgages, this is a 9,500-word guide that will teach you both how to get a mortgage and then how to pay it off faster.
10:49
February 1, 2020
How Many Properties Do You Need? | Ep. 141
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 properties.  We also gave a shout out to our Epic Guide to Mortgages, this is a 9,500-word guide. This shows you how to get a home loan and then pay off your mortgage. 
11:48
January 30, 2020
How to Spot a Property Slump | Ep. 140
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.  We present a new model for looking at and considering slumps, which comes from Tony Alenders's economic reports. You can find the report we discussed here.  We also mentioned the Epic Guide to Mortgages, which is our 9,500-word guide on how to get a mortgage, and then pay it off more quickly.
09:50
January 29, 2020
Is There An Over-supply of Properties in Christchurch | Ep. 139
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 central up until recently.  We also discuss the Epic Guide to Mortgages, our 9,500-word guide that teaches you both how to get a mortgage – and then pay it off more quickly. 
11:45
January 28, 2020
Addington, Christchurch – What Property Investors Need to Know | Ep. 138
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 necessarily park their money in.  Addington is also the 9th most affordable suburb out of all 59 Christchurch suburbs – meaning that there is a lot of room for gentrification, especially given its close proximity to Hagley Park.  Throughout the episode, we made reference to our Epic Guide to Mortgages, which is a 9,500-word guide which is freely available on the Opes Partners website. It is well worth a read if you are either looking to get a mortgage or hoping to pay one off. 
11:29
January 27, 2020
Should I Sell My Small Town Investment and Buy In the Main Centre? | Ep. 137
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. Similarly, small towns like Whangarei are actually more expensive than properties in cities like Christchurch at the moment.  We also run through an example comparing 2 properties worth $800,000 appreciating at a lower rate, v.s. a less expensive $700,000 property increasing in value at a faster rate. Finally, we mentioned our Epic Guide to Property Investment, this is a 9,500 word guide that teaches you how to get s mortgage and then pay off that mortgage.
12:13
January 26, 2020
You Can Only Pick 2 Out of 3 of These Three Things | Ep. 136
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% lending and your property is geared for capital growth it will usually provide a cash loss.  This is summarised in a diagram we recently made showing the tradeoffs between capital growth, 100% lending and cashflow. You can find the diagram here We also mentioned the Epic Guide to Mortgages, our 9,500 word guide that teaches you everything you need to know about how to get a mortgage and then pay it off.
08:21
January 25, 2020
Fears that Stop People Investing – The Market | Ep. 135
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 rarely plays out in practice. We also offer 2 actions you can take if you are worried about there being fluctuations in the value of your investment property.  If you want to learn more about property, then check out our Epic Guide to Mortgages, a 9-500 word guide that teaches you both how to get a mortgage and then pay it off more quickly. 
12:49
January 24, 2020
Two-timing the Banks – What investors need to know | Ep. 134
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 terms of how you manage your money and your assets will be more secure. If you currently just use one bank then you can slowly move your lending to other banks in stages, as described within the show.  We also mentioned the Epic Guide to Mortgages, this is our 9,500-word guide that teaches you how to get a mortgage and then pay it off faster.  If you want to learn more about Eugene and Twine Financial Advisers then: Check out their website Connect with Eugene on Linkedin 
12:09
January 23, 2020
Case Study: Building a Lending Strategy | Ep. 133
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 encourages them to put more away towards their mortgage today (by tithing less) so that they can build their wealth and give more over their lifetime.  The second example if from a Samoan family who were earning good incomes, but because they were so generous with their friends and family they weren't getting ahead paying down their mortgage and were barely making ends meet. Eugene learnt that this family's real motivation was to help their kids get into property by leveraging the family home (which can only be done when there is enough equity within the property). By discovering this, Eugene helped them decrease their expenses and increase their mortgage repayments so that they can achieve their ultimate goal.  In the show, we also discussed the Epic Guide to Mortgages, our 9,500 word guide that teaches you both how to get a mortgage and then to pay it off more quickly. 
11:31
January 22, 2020
What it Means to "Structure Your Mortgage" – What Investors Need to Know | Ep. 132
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 of the mortgage Additional lending facilities you might have in place We also mentioned the Epic Guide to Mortgages, which is our 9,500 word guide that shows you both how to get a mortgage and then pay it off more quickly. 
14:38
January 21, 2020
The One Time You Might Want to Break Your Contract With The Bank | Ep. 131
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 (or the lost profit/revenue) due to your breaking of the contract.  However, the banks internal calculations don't always reflect this. At times, you will be able to break your loan, pay the fee and refix at a lower interest rate, saving you money. Eugene shares an example within the show of a client who was able to save $40,000 by breaking their contract with the bank and moving to another lender. 
09:48
January 20, 2020
Which Bank Is Best For Investors? | Ep. 130
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-occupiers. This means that there is an additional cost to banks by lending to investors. That's why some banks pass on that additional cost in the form of higher interest rates to investors. But, not all banks pass on this cost. Specifically, ANZ and TSB do not charge investors higher interest rates ... in essence, they absorb that extra charge (at the time of writing). Now, that doesn't mean that you should always put your loans with ANZ or TSB, becuase these rates are negotiable (and those banks may not be in the position to lend to you at the time of your application). That's why it's important to have a good mortgage broker who can negotiate down the additional margin when working with a bank that does pass on that margin.  Throughout the show we also referenced the Epic Guide to Mortgages, our 9,500 word guide that teaches you both how to get and then pay down a mortgage.
12:26
January 19, 2020
The Barefoot Investor – How You Can Apply It In NZ | Ep. 129
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 with the New Zealand property market The author's retirement strategy and our thinking of whether this could reasonably be applied within New Zealand. While we don't think it's the only money guide you'll ever need, we do recommend reading it if you have the chance. Although it's very geared towards Australia's rules, regulations, superannuation schemes and market conditions, there are some valuable tips and strategies that Kiwis can learn from and implement. 3.5 / 5 stars ⭐️ We also recommend taking a look at our Epic Guide to Mortgages. While we wouldn't claim it's the only mortgage guide you'll ever need, it comes pretty close 😀
15:22
January 18, 2020
Property Investment Nightmares – When Co-ownership Goes Wrong | Ep. 128
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 impacted the aunt's wellbeing to the point where her decision making has been severely impacted.  The question we answer in the show is: a) what should this particular investor do in order to get out, or fix the situation? and then b) what can other property investors learn about co-ownership from this situation? We also mention the Epic Guide to Mortgages, our 9,500-word guide that teaches property investors both how to get a mortgage and then pay it off faster.
09:29
January 17, 2020
Setting Financial Goals for 2020: What Property Investors Need to Know | Ep. 127
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 accountable to it An example of this would be: What – Send my two toddlers to private high schools When – In 10 years once they both turn 13 How Much – $305,000 for 10 years of education, accounting for inflation Remind – Put a cut out of the high school's newspaper ad on the fridge at home Get Accountable – Tell your partner or siblings that that's what you want to do. We walk through this exact example within this episode and show how property investment can be the right tool to achieve your financial goals. We also go over that property investment is not the only tool you can use and property is not the right tool for every financial goal.  Finally, we also discuss mortgages and our new Epic Guide to Mortgages. This is a 9-500-word guide that you can read to learn both how to get a mortgage and then pay it off faster. 
10:36
January 16, 2020
Every Strategy Is a Good Strategy ... Depending on the Circumstances | Ep. 126
In this episode, we discuss how every property investment strategy can be a good strategy depending on the circumstances and the situation. It's easy to read stories of the strategies that millionaires or billionaires have used to build giant property portfolios .... and these can be great strategies. But, those same strategies aren't going to fit most everyday Kiwis. Similarly, the strategies that everyday Kiwis use and implement wouldn't be appropriate for millionaire property investors. Every strategy can be a good strategy as long as it works for you. During the show we discuss risk appetite, ambition, start-up capital, the time put into a portfolio and a couple of other factors that will influence the strategy that ends up being right for you.  We also mentioned our Epic Guide to Mortgages, a 9,500-word guide that teaches you first how to get a mortgage, and then how to pay it off more quickly. 
13:50
January 15, 2020
Should You Plan to Live in Your Investment Properties? | Ep. 125
In this episode, we discuss whether you should ever think about moving into your investment properties? This is a question that is frequently raised by newbie investors. They're thinking about moving to a city in the future and wonder whether they can lock in today's property prices, rather than pay more in the future.  Generally, this isn't the best idea. If you buy an investment property with the intention of living in it, emotion can start to cloud your decision making. You may make a bad investment.  Instead, it's a better idea to buy a property, or a series of investment properties that make sense on their own. Then when you are ready to buy your own property, you can leverage off the equity gained in your investments so you can purchase the home you want to live in.  In the show, we also mention our Epic Guide to Mortgages. If you're planning to buy a property in 2020, this 9,500 word guide will teach you everything you need to know about getting a mortgage and paying it down more quickly. 
11:36
January 15, 2020
29.2% of Renters Can Afford A Mortgage For Their First Home | Ep. 124
In this episode, we discuss a recent Stuff article that Ed wrote and had published. Looking at data from the Ministry of Housing and Urban Development, he found that the just shy of a third of renters actually could afford to pay for a mortgage for their first home.  With deposit requirements for the First Home Loan falling to 5%, he writes that it's puzzling that only 5% of renters each year become homeowners, when many more could afford it. It seems there is a perception gap. 62% of Kiwis surveyed by IPSOS said that they didn't believe they could afford a home in their local area. Again, this doesn't match with the data because 72% of Kiwis either already own their own home, or could afford it according to the Ministry's data.  There is a difference between what Kiwis can do, what they choose to do and what they say they can do.  We also mentioned the Epic Guide to Mortgages which Ed wrote over the Christmas break, which may be useful if you are considering taking our a mortgage in 2020.
10:10
January 14, 2020
You Don't Have To Live In Your First Home | Ep. 123
In this episode, we discuss that your first home might actually be an investment property – you don't actually have to live in it.  We discuss the reasons why this might be right for you, and how it may be better to continue with your current lifestyle rather than upending it all to buy property.  First home buyers wanting to follow this strategy should be aware that they can't use their KiwiSaver to buy an investment property, but they can buy a property with their KiwiSaver for 6 months and then turn it into an investment property. 
09:31
January 12, 2020
The Bank of Mum and Dad. What It Is + How To Us It | Ep. 121
In this episode, we discuss the Bank of Mum and Dad, including what it is and how to use it. The bank of Mum and Dad does not necessarily mean that your parents give you cash to use as your deposit to buy your first home.  More often than not, it is your parents increasing the size of their mortgage on their own property in order to give you enough of a deposit to top up your deposit.  This comes with its own risks and benefits and during the show we explain exactly how the bank of Mum and Dad works and a few things to look out for, whether you are using the bank of Mum and Dad to get started in property investment nz, or for your own home. 
11:22
January 10, 2020
What Happens During a Due Diligence Process? | Ep. 122
In this episode, we discuss the exact steps that happen within a due diligence process and the costs associated.  Some listeners may be surprised to learn that you'd put a house under contract before conducting due diligence, but the important point to know is that the reason you put a property under contract first is so that you know you have the right to buy the property at a price that is acceptable to you.  When conducting due diligence you'll need to: Run the sale and purchase agreement passed your solicitor Order and look at the LIM Review the title Organise finance Conduct a valuation Conduct building inspections Talk to an insurance broker to ensure the property can be insured Conduct a chattel valuation (if you are an investor) All up due diligence for property investment nz can cost between $2500-$3500, so it is important that you conduct it only when you know it is a property you can buy and a price that is acceptable to you.
13:37
January 10, 2020
How to Set Up a Co-Ownership Arrangement The Right Way | Ep. 120
In this episode, we are once again joined by Bradley Parsonson from Opes Partners and Miuwi. And in the show, Brad shares a case study of a couple who didn't know each other and how they are going through the process to co-own property together.  In the show, Brad discusses how although mortgages are jointly and severable liable, some banks will offer loans where servicing is not tested on the whole loan, but only on the portion of a loan that one party takes out, as well as several other tips about how to get into co-ownership.
12:59
January 9, 2020
Top 2 Lessons Learned From 12 Years in Property Investment | Ep. 119
In this episode, we are joined by Bradley Parsonson, property coach at Opes and Co-founder of Miuwi – a property co-ownership company. During the show, Brad shares his top 2 lessons from owning property over the last 2 years: Have a buffer account, whether a revolving credit or an overdraft, so that you are able to keep the property afloat if your tenant stops paying Rely on your professionals and don't try to manage the property yourself
10:51
January 8, 2020
Using a 2nd-tier Lender – How to Borrow More Money Than The Reserve Bank Wants Banks to Lend You | Ep. 118
In this episode, we talk about the risks and benefits of using a 2nd-tier lender. 2nd-tier lenders are non-bank lenders, which means that they are not subject to the lvr restrictions set by the Reserve Bank. This means that they can lend above the 30% deposit required for an investment property without having to squeeze it into the small allowance offered for low-deposit loans. 
09:15
January 8, 2020
Deep Dive Into Different Types of Insurance Part #2 | Ep. 117
In this episode, we discuss several more types of insurance, including:  Health Insurance Trauma Insurance  Insurance is important to property investment nz because you don't know what you don't know. 
11:16
January 6, 2020
Deep Dive Into Different Types of Insurance Part #1 | Ep. 116
In this episode, we discuss insurance, who it's for and why it's important. Now the reason that we're talking about insurance on the podcast is because many people don't get into property investment because they are worried about perceived risk. Insurance helps to mitigate these risks, and a well thought out insurance plan will mean that we are protected in the event that the unforeseeable happens.  In this episode we specifically discuss: Loss of Income insurance Redundancy cover life insurance cover
13:54
January 5, 2020
6 Top Tips for Renovating Property in 2020 | Ep. 115
In this episode, we are once again joined by financial adviser, Tim Weston, who shares his 6 top tips for renovating property investment in nz: Keep the scale manageable – If it is your first investment, you wouldn't want it to blow out in terms of time or costs. The best way to achieve this is to keep the scale of the project small and manageable Know your numbers – how much are you going to make after sale and finance costs Do you research – go out to open homes and check what the price is in your market for a property that is renovated and one that isn't. Then you can make an estimate about how much you can spend in order to make $2 for every $1 you spend Keep it cosmetic – this is where an owner occupier will put their purchasing power. Their not making their decision based on the foundations of the property, it's about how it looks and feels Ensure that any extensions are manageable Avoid anything that is structural 
15:56
January 4, 2020
Do As I Say Not As I Do – A 'Grand Designs' Star Shares His Story | Ep. 114
In this episode, star of Grand Designs, Tim Weston shares his story of transforming the Britten Stables from a devastated shell into an international showstopper.  Tim shares candidly his views on the toll this extraordinary renovation took on his finances, his health and his family. It is an amazing story of an amazing property. Check out the Britten Stables here. 
13:55
January 3, 2020
Forming Your Own Property-Buying Syndicate | Ep. 113
In this episode, we discuss how to form your own property buying syndicate based on a question that was sent in by a listener of the show. We discuss that if you don't have enough equity to purchase property, whether because of the lvr restrictions or otherwise, then forming your own syndicate may be for you.  The top risks for property syndication are: You are jointly and sever-ably liable for the mortgage that you take on. This means that if your property-buying parter skips the country then you are liable for their portion of the loan Needing for an aligned exit plan so you can all get your money out at the end of it. 
11:10
January 2, 2020
Buying Off The Plans: What Investors Need to Know | Ep. 112
In this episode, we discuss buying off the plans – the different ways you can do it, and an analysis of some of the risks and benefits as to why you would buy property off the plans.  There are two ways to buy property off the plans:  Progressive Payments, where you make payments to the developer or builder at specific milestones Turn-Key, where you pay a deposit, and then nothing else until the property has been completed Progressive payments tend to work better if you want to change the property and customise it as you go, whereas in turn-key you have less ability to customise the property as you go. The reason you might buy property off the plans is that by definition you are buying a new property, which has looser lvr restrictions from the Reserve Bank.
12:13
January 1, 2020
3 Steps to Becoming A Property Investor in 2020 | Ep. 111
In this episode, we discuss the three steps to take if you want to become a property investor in 2020. These are: Figure out where you are now and then where you want to go. And then look at the resources you have that can be used to help get you there Create a strategy about how large your portfolio will need to be in order to help you close that gap and then create buying criteria showing the types of properties that you are going to invest in Go out and look for properties that match your buying criteria.  The most important steps are steps 1 and 2. Most people will skip to #3 and immediately start looking for properties. But, this is the wrong approach to take. If you're looking for any property, you're sure to find it. But, if you are looking for a property that is going to make a good investment for you, then it's a good idea to determine exactly what that looks like first.  One step we didn't mention in the show is calculating your mortgage using a mortgage calculator. You can use the calculator on the Opes website to calculate your future mortgages.
12:51
December 31, 2019
4 Ways To Pay Off Your Mortgage Faster | Ep. 110
In this episode, we discuss 4 ways to pay down your mortgage more quickly. These include: Use an offset account to use cash you have saved to decrease the amount you pay interest on Make extra payments to your mortgage Consolidate consumer debt into your personal mortgage to help you focus on one payment and reduce the interest payments you make on that additional debt Purchase an investment property to help you pay down the debt as you increase equity within your property  You can also use our mortgage calculator to help you run different mortgage scenarios for your own home loan.
11:54
December 30, 2019
Our Biggest Blunder in 2019 & Why the Average Mortgage Size Isn't As Big As You Might Think | Ep. 109
In this episode, we discuss the biggest blunder that Ed made in 2019, or rather where he copped the most flack on social media. In October we created a video suggesting that the average new mortgage in Auckland was around the $280K mark, which was swiftly rejected online.  In this show, we go through the reasons as to why the average new mortgage may be much lower than you might initially think. This is because: New mortgages taken out by first home buyers aren't typically taken out on the median house price. Rather, first home buyers buy cheaper houses and therefore take out cheaper mortgages Many new loans are taken out by existing owner-occupiers, who have built equity in their homes and therefore have larger deposits. This means that they don't need to take out large mortgages
09:45
December 29, 2019
4 Key Differences Between the Property Market and the Share Market | Ep. 108
In this episode, we discuss 4 key differences between the property market and the share market. Only 24% of the property market is made up of investors, the rest is primarily made up of owner-occupiers, this has some important flow on effects in terms of how the market operates: The property market has higher barriers to exit for owner-occupiers than there are in the share market. Property owners need to pay for a real estate agent to sell their house, which can be a real disincentive for property owners to get out of the market – especially as it takes a median of 33 days to sell a property, whereas shares can be traded instantaneously. This means that when the market is not doing so well relatively fewer property owners will opt to sell their properties, which creates a more stable market In the property market, you have the ability to make cosmetic changes to your investment in order to increase its value. You can't do this in the share market, because you have one share. And because there is more emotion associated with property, investors have the opportunity to make quick gains because the market is based on emotion, not on the fundamental value of the asset The property market is less reliant on investor sentiment, as the majority of the market is not made up of investors Individual property investors have more control over what they can do with their investment. If you are an investor and want to make a change to your property, you can. If you're a Westpac shareholder, try telling Westpac what you want them to do. 
08:25
December 28, 2019
Should You Pay Off Your Mortgage Before You Start Investing? | Ep. 107
In this episode, we discuss whether you should pay off your personal mortgage entirely before you start investing in nz property. In short, the answer is generally no. The reason is multi-fold: If you wait till you have paid off your mortgage entirely you won't have as long in the property market because you may have to wait, 10, 20 or 30 years before you get started – and the most important factor in the property market is the time spent in the market Investment property can, in fact be used to pay off your mortgage faster, and in the show, Andrew runs through the scenario of whether it is better to invest $50 a week in an investment property, or paying down your personal mortgage further. 
11:52
December 27, 2019
Should You Only Focus on Cashflow and Ignore Capital Growth? | Ep. 106
In this episode, we discuss a piece of advice which can be found in nz property investment books from the 1990s to early 2000s, which goes something like this: "only focus on cashflow, don't worry about capital growth. Just treat capital growth as a bonus". We discuss whether we agree with this advice or not, and the answer is generally: "no". The reason for this is that you will need a significant number of cashflow positive properties to build the same amount of wealth generated from a capital growth property – it is just not realistic that a property investor would be able to take on that many properties because of the bank's financing limits. 
12:14
December 26, 2019
What Happens If You Buy The Wrong Property? | Ep. 105
In this episode, we discuss what happens if you make a bad investment and you pick up a property that either costs too much per week and is costing you money, or is not achieving the growth that you initially anticipated overtime?  The simple answer is that you divest the property and sell it. But, in this episode, we'll also teach you how to tell whether this property is really a dud or whether it is just going through a rough patch. 
10:08
December 25, 2019
10 Free Xmas Gifts For You | Ep. 104
In this episode, we give you 10 free gifts from Opes for you to learn about property investment, or buying your first home in the new year: The Epic Guide to Property Investment in NZ – Our 16,000 word guide to investing in property in New Zealand Property Academy Video Course – A free video course that teaches you how to invest in property within NZ. First Home Academy Video Course – Use promo code: PODCAST to access this course for free. A $99 saving. The Property Academy Podcast Your Own Terms Calculator – A calculator that shows you how much more quickly you could pay off your personal mortgage by investing in property Magazine Articles Retirement Calculator  Facebook Live with APIA – A 55-minute video we recorded live with the Auckland Property Investors Association Leverage Calculator – A calculator that shows you how much equity you have within your home and what that translates to in terms of purchasing power Property Investor Quiz – A 7-question quiz that tells you whether you are in the position to invest or now
07:13
December 24, 2019
The 3 Types of Leverage Every Investor Needs to Know | Ep. 103
In this episode, we discuss the three types of leverage that every investor needs to know. These are:  Leveraged Returns – when you invest in property, you are able to purchase an asset that is worth far more than the deposit you have put in. If you put in a 20% deposit, then you buy an asset that is 5x more valuable than your own deposit. The benefit of leveraged returns is that if that asset (property) goes up in value at 5% each year, that is 5% on the whole asset, which is 25% of your initial deposit. Leverage Off Your Own Home – May property investors in NZ don't start their property investment journey with a cash deposit. Rather, they leverage off their own home in order to find the deposit. Leverage Off Your Tenant's Rent – Many 1st-time property investors are worried that they are going to have to fund a second mortgage. This is not the case. Because you have a tenant in your property, you are able to use their rent to cover your operating expenses and the mortgage (at least a portion, if not all).  These three types of leverage work together to make property investment both a passive form of investment, but also an affordable means of creating wealth for everyday New Zealanders. 
12:25
December 23, 2019
Teardown: Is Investopedia's Advice Applicable to NZ? | Ep. 102
In this episode, we discuss whether we agree with Invesopedia's top 10 tips for property investment. The key takeaways are: A lot of property investment education (online) is specifically geared towards the US market.  The US market has totally different dynamics to New Zealand, and the figures, yields and general rules of thumb are totally different. This means that when ratios, yields and purchase prices are suggested in these articles you need to take them with a real grain of salt as they may not apply. While the 1st tip was to be willing to do your own maintenance, this is a dangerous suggestion for two reasons:  a) you'll be encouraged to buy near your own home so you can conduct that maintenance. However, that may not be the best decision for your portfolio b) if you mess it up then you have greater liability so it is riskier.  If you can, try to find educational material and information that is geared towards property investment in NZ, rather than from overseas.
13:01
December 23, 2019
Capital Gains Taxes and the Bright Line Test | Ep. 101
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 sold within those 5 years (except for the main family home). This means that there is effectively a 33% tax on capital gains made from property if you already earn at the top tax rate. 
11:30
December 21, 2019
What Does Opes Property Coaches Actually Do? | Ep. 100
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 be able to get you to where you want to go Plan Meeting – Create your property investment strategy, including determining how large your property investment portfolio needs to be, along with creating buying criteria about the types of properties you'll need within your portfolio Property Finding – Helping you find the right properties that fit within that strategy that was created as part of step 2 We also discuss why Opes was started and why Andrew and Ed are proud to be a part of the company. 
11:42
December 20, 2019
How Old Is Too Old to Buy Property? | Ep. 99
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 $500,000 to purchase an investment property on a 30 year term. That person would be 95 by the time the loan was repaid, which is why the banks are typically more hesitant to loan to older borrowers. 
08:13
December 19, 2019
3 Case Studies: Who Can Invest, Can't Invest and Might Be Able to Invest? | Ep. 98
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. 
13:52
December 18, 2019
How to Borrow More Against Your Property. 6 Exemptions to the LVR Rules | Ep. 97
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 lending can fall outside the 20% deposit requirement for owner-occupiers and 30% deposit requirement for investors New builds are exempt from investor LVR NZ rules – If you purchase a brand new property then you won't be subject to LVR restrictions. Theoretically, you could get a loan for 100% of the value of the property and it would be totally kosher and be within the RBNZ's lvrs. Remediation – if your property requires work in order to be brought up to code, then you can borrow above the lvrs in order to fund these works First Home Loans – All First Home Loans are exempt from lvr restrictions. These are low deposit loans that are offered to fire home buyers who meet certain criteria Bridging loans – An owner-occupier can temporarily go over the lvrs if it is for a short time and agreed with the banks while the buy and sell a different property Refinancing – property owners are able to refinance between banks and as long as the loan amount doesn't increase then the refinanced lending is exempt form lvr restrictions. 
13:34
December 17, 2019
LATEST NEWS: Record House Prices in NZ | Ep. 96
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 good news because Auckland City and Christchurch City also achieved record prices, even as the regions have been relatively sluggish over that period.  All up this is good news for the property market as we head into 2020.
11:57
December 17, 2019
Do you really need a trust for your properties? | Ep. 95
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, but also the 3 reasons why these may no longer apply. To learn more about property investment in nz, then check out the Epic Guide to Property Investment our 16,000-word guide to investing in property within New Zealand. 
08:43
December 15, 2019
Buying Property Off the Plans – What Investors Need to Know – Ep. 94
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 purchase a brand new property, it is not subject to the 30% deposit requirement that banks need in order to give you the finance. This means that banks will happily lend you the money to purchase a property with a 20% or even a 10% deposit.  Because the property hasn't been built yet there is less competition to buy the property. There are no auctions to go to and the buyer has more control in the sale You're able to buy in today's market, however by the time the property has been built and you settle with the developer (i.e. pay them the money) your property may have gone up in value during the phase of the build. Shelley and Ed then discuss how to protect yourself from a legal perspective by using Sunset Clauses and how to resolve disputes with a developer.
10:49
December 14, 2019
What Can Go Wrong in a Real Estate Deal – A Lawyer's Perspective | Ep. 93
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 legally able to purchase the property, yet his contract was already unconditional ... that is he has to settle the property and go through with the transaction.  So, his best course is to delay settlement until the transaction can legally be registered with the government.  These are exactly the sort of situations a good solicitor should pick up on before a contract goes unconditional.  Shelley Funnell is a solicitor at Henderson Reeves, a mid-sized law firm based in Auckland and Whangarei. 
10:22
December 14, 2019
Key Clauses in a Sale and Purchase Agreement | Ep. 92
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 property) while you ensure that it is fit for purpose. We mentioned in the show that we would include a Due Diligence clause you can use: This agreement is entirely conditional upon the Purchaser in its sole discretion being satisfied that the property is suitable for the Purchaser’s intended uses following the Purchaser carrying out due diligence investigations on the overall viability of the property and including but not limited to searching any and all easements, and of any requirements of the local authority or financier, this clause is for the sole benefit of the Purchaser and the Purchaser shall have until 4pm on 10th working day from the date of this contract to give to the Vendor’s solicitor notice that this clause is satisfied failing which the contract shall be at an end. This clause may be waived by the purchaser prior to the prescribed time at the sole discretion of the purchaser.
16:30
December 13, 2019
New: Updates to NZ's Standard Sale and Purchase Agreements | Ep. 91
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.  The new version of the contract (the 10th version of the document) is important for property investment because several clauses have changed. For instance, the interpretation of the finance clause is such that you are no longer able to use the finance clause in the same way as a due diligence clause (a get out of jail free card). If property investors want to cancel a contract using the finance condition, then the vendor can require that evidence is provided that the buyer was unable to obtain funds for the purchase. Other changes have also been made in respect to the use of fax machines, and toxicology reports. HendersonReeves is a medium-sized law practice based in Auckland and Whangarei.
12:03
December 12, 2019
Refinancing: What Investors Need to Know | Ep. 90
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)
13:49
December 10, 2019
3 Things That Stop Investors From Increasing the Size of their Property Portfolio | Ep. 89
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 coach working with you to achieve your goals then you might not hit them. Lending Restrictions Banks treat you more stringently when you have a large level of debt with them. LVR Restrictions, i.e. you don't have enough useable equity to buy the next investment property. Property Choice Investing in existing properties will use up more useable equity than if you were to invest in brand new properties. Because new properties are exempt from the LVR Restrictions you can buy around 50% more property using the same level of deposit when you invest in new, rather than existing properties
11:16
December 10, 2019
6 Events From The Last 20 Years That Have Impacted the Property Market | Ep. 88
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 the Digital Economy The key takeaway from this episode is that although these factors all happened, the NZ property market was still strong and continued to appreciate even as shocking events were introduced.
13:43
December 8, 2019
Is There Really a Housing Shortage in NZ? | Ep. 87
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. As they do, some buyers will drop out of the market and more suppliers will be drawn into the market by the higher prices that are now available. This will continue until there is an equilibrium. However, we also discuss that the assumption that demand and supply are constant while these market dynamics play out, may not be accurate. For instance, even as prices are bid up and some buyers drop out of the market, there are even more buyers entering the market wanting property. This occurs through organic population growth (more people being born than those that are dying) and through historically high net migration in NZ. The effect of this is that the additional demand coming into the market creates a perpetual shortage. And even though suppliers (both developers and owner occupiers) will be drawn into the market, the lag in the time it takes for that supply to come onto the market means that suppliers can never fully respond to close the shortage.
11:08
December 7, 2019
Why Your House Isn't An Asset | Ep. 86
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 investment. We also discuss the option of putting a minor dwelling on the back of your existing property, which you may be able to rent out in retirement, in order to turn your house into an asset. 
07:28
December 7, 2019
Area Update: Mt Wellington, Auckland | Ep. 85
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 period, Mount Wellington is the only suburb where the median house price is below $800K. This indicates that Mount Wellington properties will likely achieve superior capital growth, and yet they are still priced at a relatively affordable entry price point. We also discuss that Maungakiekie-Tamaki, the local board area in which Mount Wellington is located, is both a)  experiencing more rapid population growth than Auckland at large, and b) has the second-highest GDP of any Auckland local board area (2nd only to the Auckland CBD).  
11:42
December 6, 2019
Why Property Investment is Ethical & Desireable | Ep. 84
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 house that the government doesn't have to provide. This saves the government spending enormous amounts of public money on housing Many residential properties are negatively geared, which means that the investor is putting money into the property each week, and the rent doesn't cover all of the expenses associated with the property. This means the investor is effectively subsidising the tenants to live in the property The reason many Mum's and Dad's become property investors is to sort out their own retirement. By investing in property they are taking responsibility for their own retirement, which places less burden on the state When property investors invest in brand new properties they help more developments get off the ground. If property investors weren't in the market then developers could only sell to owner-occupiers. This would shrink the market for development and would mean that fewer houses would be built, and they may be more costly, both to get off the ground in the first place and because of economies of scale When property investors bring new houses onto the market – whether through building new developments or renovating run-down properties – the supply of housing increases. This decreases the price of houses, relative to what they would otherwise be.
07:57
December 5, 2019
Top Takeaways From the 2019 OneRoof Property Report – Ep. 83
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 the government's focus on reducing net migration. And yet, despite all this, the median house price in New Zealand still increased by 8,19%. Despite these changes, the market is still resilient and that's because the fundamentals of the NZ property market are still strong Special guest, Dennis Schipper shares that we're seeing more first home buyers enter the market, which is a great sign that decreased interest rates and the slight relaxation of LVRs (which came out earlier this year) are having an effect. Dennis' top tip is to follow where first home buyers are buying because he sees it as a good sign for future property price growth as families settle into particular areas. As always, if you would like to find out more about property investment in NZ, then check out the Epic Guide to Property Investment in NZ on the Opes Partners website.
07:46
December 3, 2019
5 Reasons to Invest in the Main Centres | Ep. 82
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 potential tenants, so you're less at risk of vacancy There is more infrastructure being built, which opens up opportunities for capital growth Because of these other reason the major centres tend to be more stable and predictable than the other centres
11:22
December 3, 2019
6 Strategies When The Bank Says No | Ep. 81
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 and then get it revalued) Consider a co-ownership – owning half the house with family and/or friends Work with a money coach to decrease your expenses Get a higher paying job/take on a secondary job/or get your partner to get back into the workforce if they haven't been working Don't buy that property, but buy another one. e.g. look at a new property where the deposit requirements are more relaxed e.g. new properties
12:38
December 1, 2019
RBNZ Comments on the Bank's Servicing Test Rates | Ep. 80
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 rates. If these rates decrease (they're at about 7% at the moment) then borrowers will be able to borrow more, which could add inflationary pressures to the market.  These moves would bring NZ inline with the Australian banks, which have recently decreased their test rates to around 6%. However, it should be noted that the test rates are set by each individual bank, and the central bank does not have control over how the banks set these rates.
09:18
December 1, 2019
Why Women Need to Invest in Property | Ep. 79
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. 
13:05
November 29, 2019
Di Compares: Investing in NZ v.s. Overseas | Ep. 78
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.
11:42
November 29, 2019
Di Compares: DIY investing v.s. Using an Expert Coach | Ep. 77
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 some of her friends and colleagues who DIY quite happily.
11:59
November 27, 2019
Millennials, Boomers and Gen X'ers – How They Approach Property Differently | Ep. 76
In this episode, we are once again joined by property investor and executive leadership coach, Di Foster. After helping herself and her husband into property investment, Di began wanting to help her father, nieces and nephews all get into the property market. What Di discovered is that each generation needs to get its head around a slightly different concept. For Millenials, it's lifestyle. Millennials need to understand that they don't need to live in their first property. Sometimes it's more appropriate to buy an investment property and get exposure to the property market, rather than buying an owner-occupier home For Gen X'ers it's about cash. Gen X'ers need to be reassured that they aren't going to have to sacrifice their lifestyle and cover all of a second mortgage in order to be able to hold the property  For Boomers it's about debt. So many Boomers work their whole lives to get out of debt, and then they need to get back into debt in order to get ahead. The drivers to get into an investment property are also different. For Millennials it's about getting ahead themselves. Gen X'ers want to sort themselves for retirement and for their children, and Boomers want to maintain their capital position in retirement in order to look after their future generations. 
12:31
November 26, 2019
Why'd You Do It? A Real Property Investor Answers | Ep. 75
In this episode, Di Foster – property investors and executive leadership coach – walks through the reasons she decided to get into the investment property market and become a property investor. Di opens up and tells us that she was in a different position than she thought she was going to be in, due to a health scare. This is what prompted her and her husband to start looking at investment property. We talk through one of the properties Di has invested in – a three-bedroom, two-bathroom standalone house in Wigram, Christchurch. She talks through how the property was bought for $500,000 and three years later is valued at $570,000 – a 4.4% growth rate year on year. That compares to a growth rate of 2.6% in the Canterbury region over the same period. 
09:39
November 25, 2019
The As Is Market in Christchurch | Ep. 74
In this episode, we discuss Christchurch's 'As Is' Market. The Christchurch earthquakes were devasting for homeowners in the Canterbury region. Many were left unlivable and there was a severe housing shortage in the city.  After homeowners were paid out, and the EQC had made repairs to properties, it was clear that there were still properties that needed work. This created the 'As Is' market. These are properties that still require work and repairs before they can be brought up to code and to an acceptable standard. Developers will buy these properties, repair them and sell them back on the open market – often generating a significant return.  During the show, Nick reveals the real numbers and talks openly about the difference between the real numbers and the vanity metrics.
11:59
November 25, 2019
Different Ways to Develop Land | Ep. 73
In this episode, we are joined by Nick Johnstone a developer investor based in Christchurch. Nick walks us through a feasibility study he did on a piece of land.  His options were to either demolish the existing property on the land and build three new units. Or, he could build a minor dwelling on the back of the property and rent it.  He shows us why it made more sense for him to build the minor dwelling, which generated a smaller return, rather than going through a complex development process. 
14:56
November 23, 2019
Jackson Asks: Why Do People Rent? | Ep. 72
In this episode, we answer another question from one of our youngest listeners, Jackson. Here he asks, why do people rent your houses? There several reasons why someone might rent from a property investor. These include not being at the stage of life where the person is ready and able to buy their own house, not wanting to take on debt, being transient or not being able to afford to buy in the city that a person wants to live in. 
07:41
November 22, 2019
Jackson Asks: If I Have to Work For Money Now, What Will I Do When I Retire? | Ep. 71
In this episode, we answer a question from one of our youngest listeners, Jackson. Here, he asks a simple question: if I need to work to earn money to live on today, what will I do when I retire? This is important because before you can close your retirement plan in place, you need to know that your retirement gap exists.  In the show we talk about the two approaches to closing your retirement gap with property investment. 
08:19
November 21, 2019
Negative Gearing – What You Need To Know – Ep. 70
In this episode, we discuss negative gearing. This is the situation where your property makes a cash loss each year after factoring in interest costs. Some property investors steer clear of negative gearing others embrace it.  The fact is that negative gearing typically occurs when mortgage repayments are high and when investors have purchased their investment property with 100% lending. This means that no 'real' deposit has been used to secure the property and the only cash that has been put into the property comes from the investor's 'top-ups'. In the show, we discuss the good and the bad of negative gearing within property investment. 
11:43
November 20, 2019
Stop Thinking Your Going to Live In Your Investment | Ep. 69
In this episode, we discuss the fact that you're not going to live in your investment property, so you can't treat it as if you will. Instead of looking for factors that you would 'like' to have as a tenant, you need to look for the factors that will make it a great investment: good capital growth with reasonable cashflow. 
09:16
November 20, 2019
Your Biggest Cost in Property Investment – Procrastination | Ep. 68
In this episode, we discuss that many people will wonder why they should get into property investment now ... why not wait a few years? We discuss that so many things can change over time in property. In 5 years you may be subject to stricter lending criteria, higher market prices or increased regulation.  You've also got limited control about what could happen in the future, and you have no certainty about what the future might entail. Whereas you can analyse market conditions and regulatory frameworks as they are today.  Finally, if you wait, you miss out on any capital growth that may have occurred during your ownership. This is what will be your largest cost in property investment. 
09:56
November 18, 2019
Pop Quiz – Which Towns Have The Best Yields? | Ep. 67
In this episode, we discuss rental yields and which towns generate the best rental return for investors. We walk through the top 5 towns, and discuss the reasons why they might get superior rental yields.
10:37
November 17, 2019
Should You Pay Off Your Mortgage Before Investing In Property? | Ep. 66
In this episode, we talk about whether prospective property investors should pay off their personal (owner occupier) mortgages before investing in property – and which they should pay off first.  This question came from the Property Investment Chat Group NZ, a Facebook group where investors discuss property in New Zealand.  Andrew walks through the reasons why it is generally better to get into investment property early rather than wait. And that it is typically better to pay off your own occupier mortgage before you pay down any investment debt.  The key reason behind the latter point is that it is inefficient from a tax perspective to pay down investment debt first. That's because the interest on an investment loan is tax-deductible, while it isn't on your personal home. 
10:33
November 17, 2019
Reserve Bank Update – What It Means For the Housing Market | Ep. 65
In this episode, we discuss this week's Reserve Bank update. While not much changed from a policy perspective – the Official Cash Rate didn't change and the LVRs remained at their current levels – there were some key points made, which indicate future moves.  The Reserve Bank indicated that a rate cut is likely to occur in February 2020 and that the bank would still like to see increased spending from the government and businesses. For them, increased long term investment is still the most desirable outcome.  The bank is taking a wait and see approach, they want to see the benefits of their previous rate cuts hit the market before taking further action.  The general trend for property investment is positive. If LVR restrictions and interest rates continue to ease – as we expect they likely will, then property investors (especially 1st and 2nd time property investors who aren't already heavily indebted) will benefit. 
08:20
November 15, 2019
Why The NZ Property Market is Unique | Ep. 64
In this episode, we discuss why the NZ property market is unique. We identify that because New Zealand is a long skinny country, which was colonised, our major cities are primarily port cities – based around large bodies of water. This is true for Auckland, Tauranga, Dunedin, Wellington, New Plymouth – and even Christchurch. This means that there is an area the city can't expand into. This means that inner-city land becomes more desirable because the new suburbs are further and further away (compared to if the city could expand in a perfect circle.  We also discuss that New Zealand is politically stable, has a relatively prosperous economy and is protected from many global headwinds. This causes the New Zealand property market to be particularly buoyant and robust. While it may seem attractive to invest overseas, we can sometimes forget, as New Zealanders, that there is a great property market that we can invest in at home. 
10:31
November 14, 2019
Will Sacrifice Now or Later? | Ep. 63
In this episode, we discuss that property investment requires a sacrifice – an investment. It might sound obvious, but Andrew gives an example of a couple who wanted to invest in property but didn't want to sacrifice their current lifestyle.  His challenge to them was to sacrifice now and invest ... or continue to live their current lifestyle and sacrifice later in retirement. 
10:21
November 13, 2019
How Property Cycles Work | Ep. 62
In this episode, we discuss how property cycles tend to work, with a special mention on the Auckland Property Market. Property cycles are arguably one of the most important considerations when investing in property. However, they are very hard/impossible to predict.  One of the key takeaways from the show is that the property cycle is not the same as the economic cycle. Where shares tend to fluctuate widely in value based on the economic cycle, this is not the same for property.  New Zealand's property cycles tend to operate in spurts. When the property market heats up, property prices will leap for a few years, and then flatten out for a few years. When the next property cycle comes, property prices will leap again for a time, before flattening out again.  This can be seen by looking at any graph of a region's median house price over a period of 20+ years.
12:33
November 12, 2019
3 Real Life Case Studies – What Can Actually Happen | Ep. 61
In this episode, we give three real-life case studies about what can happen to property investors when they take the plunge.  2 of the investors within these case studies achieved large gains in the value of their properties within the first 4-6 years of owning their investments. 1 of them is yet to see any substantial gain from their investment. We talk through some of the reasons why this might happen, and how property cycles impact the immediate gains that can be achieved by investors. 
14:19
November 11, 2019
Mangere – Is It a Good Place to Invest? | Ep. 60
In this episode, we discuss whether Mangere is a good suburb to invest in. Mangere is one of Auckland's lower socio-economic areas, and may not typically have been where most investors would have thought to buy a property. However, there are a lot of good reasons to invest in properties that are located within the suburb.  Over the last 18.5 years, Mangere properties have appreciated at a rate of 8.08%. This is well above the average appreciation rate of most houses in the Auckland property market, and certainly around the country.  On top of this, Mangere greatly benefits from the expansion that is currently underway at the Auckland International Airport (AIA). AIA is currently investing over $1 million per day to improve its infrastructure. This includes improving the shopping experience and building a new hotel. This means more jobs. Because Mangere is the gate-way to AIA, we would expect an increase in the number of people who would want to live in the suburb. This is a positive sign for both investors' ability to tenant their properties, and for their long term capital gain.
14:08
November 10, 2019
What Do Property Managers Really Do? | Ep. 59
In this episode, we discuss the nitty-gritty of what property managers really do for property investors. Over a 10 year period, you are likely to pay your property manager the same amount of cash as you will your real estate agent. However, for that, you will get significantly more value and service.  Celia estimates that over recent years the workload for a property manager has increased by 30%, however, they haven't increased their fees.  Property managers have awkward conversations with tenants, ensure that they pay their rents, follow up when that doesn't happen and ensure the property is maintained and expected. But, the real benefit is in their institutional knowledge and the paybooks/procedures they have in place so that if something goes wrong it can be managed.  This is the final show – in this round of recordings – where we are joined by Celia Burbery from Auckland Property Management.
14:33
November 9, 2019
What is a Good Yield in Auckland? | Ep. 58
In this episode, we discuss what a good rental yield is for Auckland property investors. Nationally, we know that Auckland typically will deliver higher capital growth but lower yields.  This depends on the type of property you have in Auckland, its location and then purchase price.  While the national median yield is over 4%, in Auckland, we would typically think someone hitting 4% would be doing well. We are once again joined by Celia Burbery, general manager of Auckland Property Management. Celia has over 35 years of experience in property, and we are really privileged to learn from her experience. 
08:50
November 8, 2019
Tenancy Law – What You Need to know | Ep. 57
In this episode, we are joined by Celia Burbery from Auckland Property Management. Property management is so important because if you want to get the long term gains from investment property, then you need to hold the property for the long term.  A big part of being able to do that is managing the property itself. That's where property managers come in. Recently there have been a few law changes and judicial rulings that impact property investors. In the show, Celia details what these are, including the new Health Homes Act and walks us through what property investors need to know.  Note: Auckland Property Management are specialists in the Auckland Property Market and do not operate outside of Auckland.
09:25
November 7, 2019
The Additional Costs Associated with Airbnb | Ep. 56
In this episode, we discuss the additional costs you will face as an Airbnb property investor. These include all the utilities you need to cover e.g. water, power, internet. You'd also expect to pay for consumables like salt and pepper, shampoo, milk (all the creature comforts guests expect). Property management is also more hands-on, which leads to higher costs. Management fees are also higher. Long term rental management fees are 7-10% of gross yield. Airbnbs will range from 20-30% of the net yield.  Property investors will also need to furnish the property to a high standard including items to make the property homely e.g. coffee table books. And depending on where the property is located, you may be subjected to higher rates. In Auckland, rates can be as much as 3x higher than a standard tenancy. This is the final episode in this round of podcasts where we are joined by Jon Lawry from Urban Butler. In the show, Jon mentioned that he has an ebook detailing the 5 things that every Airbnb host needs to know. To access that free ebook fo to the Urban Butler website
13:54
November 6, 2019
What Deloitte Thinks of Airbnb (& What You Can Learn From Their Research). | Ep. 55
In this episode, we discuss a report that was published about Airbnnb by Deloitte, a consultancy, in 2017. This includes the economic impacts that Airbnb has on the economy at the time.  The report shows that 35% of Airbnb nights were from New Zealanders, followed by Australia, United States, China and the UK.  Airbnb had circa 1.5 million guest nights within the study period, and brought around 4x more economic activity because of other spending.  We also talk through how to gain insight into the market by comparing the data for the different regions in the report. This includes a specific highlight on the Auckland Property Market. In this recording, we are once again joined by Jon Lawry from the Urban Butler.
11:42
November 5, 2019
4 Things Airbnb Guests Look For When Booking | Ep. 54
In this episode, we discuss that if property investors want to get a high rental yield on their Airbnb, they need to get a high occupancy rate. And the way to do this is knowing what guests are looking for when booking an Airbnb. If you know what guests are looking for, you can give it to them, and better market your property.  From Jon's experience there are four things that guests typically look for (in this order): 1. Location 2. An appealing property 3. A price they can afford 4. Reviews For this episode, we are once again joined by Jon Lawry from Urban Butler. 
10:14
November 4, 2019
One Simple Way To Double The Price of Your Airbnb | Ep. 53
In this episode, we discuss one simple strategy you can use to double your price on Airbnb – dynamic pricing. This is where you vary the price of your property based on what is happening in the market. When there is a lot of demand in the market for flights or hotel rooms, hotels and airlines will put their prices up.  Jon shares that software is now available that allows Airbnb hosts to do the same thing. This means that for certain periods of high demand (for instance when big concerts and events are happening) property investors can double the daily nigh rate of their Airbnb.
10:09
November 3, 2019
The Yield You Can Get From an Airbnb | Ep. 52
In this episode, we are joined by Jon Lawry from Urban Butler to discuss using Airbnb with property investment. This episode specifically covers the yield you can expect from an Airbnb. Typically you can expect at least a 50% higher net yield from an Airbnb compared to a standard long term tenancy. It is, however, important to note that to generate these types of yields you need a property that will appeal to people who use Airbnb (apartments near the centre of town). It's important to also note that your gross yield will be far higher than a long term tenancy, but you also face higher costs, which brings down the net yield.
10:52
November 2, 2019
The Steps Involved in Buying a Property | Ep. 51
In this episode, we discuss the process of actually buying an investment property – after you've found the specific property that you want to buy. This includes the reports you need to get, the clauses that need to be negotiated, the back and forth that occurs when negotiating the price, and picking up the keys.  There are over 150 different steps that make up the property buying process, and the trick is to know what's coming so you can prepare. 
12:22
November 1, 2019
Hamilton – Is it a Good Place to Invest? | Ep. 50
In this episode, we discuss whether Hamilton is a good place to buy an investment property. We specifically discuss the amount of infrastructure investment that is currently occurring in Hamilton. This includes the Ruakura Inland Port, The Waikato Expressway, and the value of assets held by the local iwi – Waikato Tainui. We discuss that the average rate of median house price growth value in Hamilton suburbs over the last 18 years has been 6.14% per annum. This is higher than the 5% capital growth appreciation that we typically use when forecasting property values.  On top of this, Hamilton is still relatively affordable and is expected to attract the third-highest level of population growth over the next 20 years (Waikato region).
11:00
October 31, 2019
What Do You Need to Get Started in Property Investment? | Ep. 49
In this episode, we discuss three different thresholds you need to meet in order to get started in property investment. This content comes from an article that Andrew recently wrote for Juno Investment magazine, which will be released as part of the next issue.  After sharing the three thresholds, Andrew then shows how you can break the rules and invest anyway.  These three thresholds are: $90,000 NZD in useable equity within the property. That's $90,000 of money you can take out against your home, which is different than equity $50-$100 per week that you can contribute to topping up the mortgage of the property A team of people who can guide you through the process. There are several strategies you can use to break these rules, which we go through in the episode. To find out more about property investment, head to the Opes Partners website to read the Epic Guide to Property Investment, the most comprehensive guide to property investment in the country which is freely available on the internet. 
10:40
October 30, 2019
Do New Builds or Renovations Give the Highest Return on Investment? | Ep. 48
In this episode, we look at whether new builds, or existing renovation projects give the highest return on the capital you have invested. This episode is based on an article that Andrew recently wrote for the NZ Property Investor Magazine.  In the article, Andrew compares a $500,000 new build, with an existing property purchased for $400K and then renovated for $50K (resulting in a renovated property with a $500K valuation). He shows that a new build would require capital of $100K, whereas the existing property would require the investor to risk $170K worth of capital. While – over a 10 year period – the existing property would net an additional $64K worth of returns, as a percentage of the capital risked it returns a lower ROI. The new property nets 291% ROI, while the existing property returns 209% over the 10 year period.  If you are interested in learning more about property investment in New Zealand, then head to the Opes Partners website to read the Epic Guide to Property Investment in NZ. This is the most comprehensive, free guide to investing in property on the internet. 
11:37
October 29, 2019
Should You Be Able to Use KiwiSaver For Investment Property? | Ep. 47
In this episode, we discuss a recent idea that has been suggested by the Interim Retirement Commissioner – should you be able to use your KiwiSaver to buy your first investment property (if you don't already own another property). This is an important topic because we know that some groups in NZ are finding it hard to get onto the property ladder – and yet the NZ superannuation was never meant to support accommodation costs, it was always assumed that these would be sorted.  However, only 20% of Pacifica people own their own home, and only 35% of Maori own their own home. This is much less than their Pakeha counterparts. And we know that the majority of Pacifica people live in Auckland, where house prices are relatively unaffordable. We add our support behind the idea of using KiwiSaver to buy investment property, because: a) it means that you don't need to buy in the same city that you live in. This means that people struggling to buy in their home city can still access the property market, and b) because it means that multiple people can pool their KiwiSaver – so that four people could pool their KiwiSaver's to buy an affordable 2 bedroom unit. This means that it would be much more affordable for these people to access the property investment market.  If you are interested in learning more about property investment, then head to the Opes Partners website where you can read the Epic Guide to Property Investment in NZ, this is the most comprehensive guide to property investment in NZ. 
08:13
October 29, 2019
How to Withdraw Your KiwiSaver | Ep. 46
In this episode – our last with Clara Kim from the Juno KiwiSaver Scheme – we discuss how to withdraw your KiwiSaver from your provider. This is very simple but slightly different based on the reason for your withdrawal (whether for your first home or for retirement).  The other way you are able to withdraw your KiwiSaver is through an application for financial hardship. This is significantly more difficult and complex, which is the reason it was not discussed.  To find out more about property investment, head to the Opes Partners website. Juno Kiwisaver Scheme Disclosure: Pie Funds is the issuer. Go to junokiwisaver.co.nz to download the disclosure statement.
07:15
October 27, 2019
A Guide to KiwiSaver Funds | Ep. 45
In this episode, we are again joined by Clara Kim from the Juno KiwiSaver Scheme. In the show, we discuss the different types of KiwiSaver funds that you can typically invest in.  These include Conservative, Balanced and Growth funds. We detail the different asset classes that each of these would typically hold, as well as the growth rates we'd expect each fund to have, before going into the final returns we'd expect an investor to generate over 35 years (starting at age 30, and retiring at 65).  To find out more about property investment, head to the Opes Partners website. Juno Kiwisaver Scheme Disclosure: Pie Funds is the issuer. Go to junokiwisaver.co.nz to download the disclosure statement.
12:26
October 26, 2019
How to Make $108K Extra in KiwiSaver | Ep. 44
In this episode, we are joined by Clara Kim, educator at the Juno KiwiSaver Scheme. In the show we talk about a campaign that Juno is currently running – the $108K payday.  The purpose of the campaign is to bring New Zealander's attention to the size of the fees charged by some KiwiSaver providers. We discuss the different models KiwiSaver providers use to charge fees, and the impacts that has on your potential returns.  We then discuss what to look for, generally, in a KiwiSaver provider. To find out more about property investment, head to the Opes Partners website. Juno Kiwisaver Scheme Disclosure: Pie Funds is the issuer. Go to junokiwisaver.co.nz to download the disclosure statement.
11:09
October 25, 2019
What do Kiwi Teens Ask About Money? | Ep. 43
In this episode, we are again joined by Clara Kim from the Juno KiwiSaver Scheme. Clara travels around New Zealand schools talking to Kiwi teens about money.  In the show, we discuss the questions she gets asks: from Kiwi teen boys, Kiwi teen girls, and the questions she asks them back. To find out more about property investment, head to the Opes Partners website. Juno Kiwisaver Scheme Disclosure: Pie Funds is the issuer. Go to junokiwisaver.co.nz to download the disclosure statement.
10:42
October 25, 2019
The Basics of KiwiSaver | Ep. 42
In this episode, we are joined by Clara Kim from Juno Kiwisaver for 5 episodes all about KiwiSaver. In the show, we discuss KiwiSaver contributions, why you need to be in KiwiSaver and why the KiwiSaver scheme was launched in the first place. To find out more about property investment, head to the Opes Partners website.  Juno Kiwisaver Scheme Disclosure: Pie Funds is the issuer. Go to junokiwisaver.co.nz to download the disclosure statement.
08:53
October 24, 2019
Market Update and Doubting Data | Ep. 41
In this episode, we give an update on the NZ property market based on the REINZ monthly update. Median house prices are up 6.6% on the last year, but there is significant variation around the country. Manawatu-Wanganui us up 24.1%, but Auckland is only up 0.2% and the West Coast is down 7.5%. We also go into depth about how median house prices are calculated and what they mean (and what they don't mean).  As usual, if you want to learn more about property investment, head to the Opes Partners website. 
11:44
October 23, 2019
Which Suburb Had The Most Growth Over the Last 18 Years? | Ep. 40
In this episode, I (Ed) quiz you on which suburbs had the highest and lowest growth over the last 18 years (Jan 2000 to Aug 2018). This is both in terms of percentage and dollar growth. The results really will surprise you.  I also discuss some of my thinking about what I thought the results would be before and after knowing the answers, and where I got my initial guess wrong.  To learn more about property investment, head to the Opes Partners website.
11:37
October 21, 2019
Why Your Spending Won't Go Down In Retirement | Ep. 39
In this episode, we are again joined by Dean Blair from FoxPlan and we talk about why your spending won't go down in Retirement. When speaking with people nearing retirement, part of their plan is often to reduce their spending – perhaps often to spend half as much as they currently do.  The issue is that we spend more during the weekends and when we are on vacation. Retirement is the longest vacation of your life. This is why building wealth and preparing is so important.  To learn more about property investment, head to the Opes Partners website.  
09:12
October 21, 2019
Queenstown Property Market Update | Ep. 38
In this episode, we are once again joined by Josh Graham from Roost Mortgages. And we discuss the Queenstown Property Market.  Queenstown has a unique property market due to the impact of tourism and its landscape. The lake and high mountains reduce the amount of land available for housing in central Queenstown, and hotels with big pockets crowd out some land that could otherwise be used for housing.  Because the economy is primarily driven by tourism, most young people are working in low-paid hospitality, making it hard for them to enter the housing market. And high building costs continue to push house prices higher. If you want to learn more about property investment, head to Opes Partners website.
14:04
October 19, 2019
Can You Get An Interest Only Loan Forever? | Ep. 37
In this episode, we are once again joined by Josh Graham from Roost Mortgages. And we discuss whether you can get an interest-only loan forever. The general rule of thumb is that an interest-only loan period will run for 5 years. At the end of those 5-years you can apply for another 5-year period.  However, the bank will always consider whether you can afford the higher principal and interest payments once the interest-only period has finished. This is because once the interest only period has finished you will need to pay off the principal of the loan over the remaining period. For instance, if you took out a loan on a 30 year term and went interest only for the first 5 years, you would need to pay down the principal in the remaining 25 years after the interest only period has finished.  We also discuss interest only mortgage calculators, and why investors use them i.e. to limit the contributions they need to make to the property.  
10:28
October 19, 2019
Why You Might Not Get a Mortgage – Even If You Can Afford It | Ep. 36
In this episode, we are once again joined by Josh Graham from Roost Mortgages. And we discuss that even if you think you can afford a mortgage at the current interest rates, the banks may not approve your application.  The reason is that banks have higher servicing 'tests' that they run your mortgage application through. This means that even if you go on a 3.65% interest-only loan, they will test you on principal and interest at 6.95% in some cases.  We discuss ways to combat this, and also what it all means for property investors and first home buyers.  If you want to learn more about property investment, head to Opes Partners website. 
08:11
October 18, 2019
What Happens If Interest Rates Spike? | Ep. 35
In this episode, we are joined by Josh Graham from Roost mortgages. In the show, we answer the questions we received from the audience at our recent Queenstown property investment seminar. Here, we discuss what happens if interest rates were to spike. We start off detailing the reasons why we think interest rates are not likely to go up in the foreseeable future, before talking about how you can structure your investment properties and finances to protect against this eventuality. Of course, if you are keen to learn more about property investment, then head to the Opes Partners website.
09:08
October 16, 2019
Is It Cheaper to Use a Floating Interest Rate? | Ep. 34
In this episode, we are joined by Josh Graham from Roost mortgages. In the show, we answer the questions we received from the audience at our recent Queenstown property investment seminar. Here, we discuss whether it is cheaper to use a floating interest rate, rather than a fixed interest rate. The short answer is no. However, there may be a reason that some property investors or first home buyers might use a floating interest rate for a portion of their loan.  Of course, if you are keen to learn more about property investment, then head to the Opes Partners website.
10:26
October 16, 2019
What Side of The Table Is Your Advisor On? | Ep. 33
In this episode, Dean Blair and Ed discuss who's best interests your advisor really has in mind. Traditionally, investment companies attract customers based on free advice. Advisors would then earn their income from receiving a commission if their clients purchased a specific product.  Dean explains why this has meant that even well-meaning advisors will be seated on the opposite side of the table to the client, representing the best interests of their company and products.  The alternative is fee-for-service advice, where customers pay a fee to their advisor, thus freeing advisors from needing to recommend a specific product. This is what we mean by sitting on the same side of the table as your advisor.  To learn more about property investment in New Zealand, head to the Opes Partners website. 
14:22
October 12, 2019
What Should A Retirement Plan Look Like? | Ep. 32
In this episode, Dean Blair and Ed discuss what a good retirement plan actually looks like. So often in the podcast, we discuss the need for a plan, but not what one contains.  As an Authorised Financial Advisor, Dean spends a lot of time helping people create exactly these sorts of plans. And in this episode, he shares that a FoxPlan retirement plan addresses three area or circles:  1) The Bank (day to day cashflow)  2) Asset and Wealth Accumulation 3) Risk Mitigation We delve into each of these and consider how they work together. This is what we mean by total financial planning.  To find out more about property investment, head to the Opes Partners website.
13:05
October 12, 2019
Is It Too Late To Sort Out Your Retirement? | Ep. 31
In this episode, Dean Blair from FoxPlan joins us again to talk about whether it is too late to start sorting out your retirement plan. We agree that while it's never too late to get it sorted, the plans and tactics you use will be different based on your age and situation.  The key part of any retirement plan is understanding the risks you are taking and clearly seeing your options.  For more information about property investment in New Zealand check out the Opes Partners website.
08:01
October 12, 2019
Don't Be Dumb With Your Money | Ep. 30
In this episode, we welcome special guest, Dean Blair from FoxPlan to the show. During the show, Dean shares his personal story of how he was dumb with his money in his early days and how it affected him. He has now made it his mission to better help Kiwis make smart financial decisions. Dean will be joining us for a series of 5 episodes, where we'll talk about creating a wholistic financial plan. To learn more about property investment, head to Opes Partners website.
10:06
October 10, 2019
Jackson Asks: When You Die Will I Get Some of the Properties | Ep. 29
In this episode, we discuss another question posed by our youngest listener – Jackson ... "when you die, will I get some of the properties?" This is an important question because one of the key reasons people get started in property investment is to build inter-generational wealth ... and leave an enduring legacy for their children.  We discuss the need to set up wills, enduring power of attorneys, and the need to have proper insurance and risk mitigation programmes in place.  If you would like to find out more about property investment head to the Opes Partners website.
09:47
October 9, 2019
What To Look For In A Rental Property | Ep. 28
In this episode, we discuss what to look out for in a rental property. And it starts with understanding the type of investor that you are first – whether you are looking for capital growth or whether you are looking for yield.  If you're looking for yield, you'll realise that there are different tenancies that you could go for, each with their own benefits and drawbacks. We discuss room by room tenancies and Air BNB. These types of tenancies are going to be higher yield, but in order to access that you'll need to look for a very specific type of property.  If you're interested in learning more about property investment check out the Opes Partners website.  
07:13
October 7, 2019
Maintenance – Fears That Stop People Investing | Ep. 27
In this episode, we discuss maintenance. One of the biggest complaints landlords receive from tenants is deferred maintenance. That's where tenants have reported maintenance issues and they haven't been actioned by the landlord.  The issue with maintenance is that it is hard to plan for. You don't know when things are going to break, what's going to break and how much it's going to cost. The only way to combat this is to budget and plan for it accordingly.  For more information about property investment, head to the Opes Partners website. 
10:14
October 7, 2019
Jackson Asks: What Do You Do If You Don't Like Your Tenants? | Ep. 26
In this episode, we discuss what do you do if you don't like your tenants. And we move on to speak broadly about tenancy law in property investment. This episode was inspired by one of our youngest listeners, 7 year-old Jackson, who asked his Mum what to do in this situation.  We cover the idea that your relationship with your tenant (as a landlord) is not a personal relationship, it is a business relationship, so it doesn't really matter whether you like them or not. What matters is whether they comply with the agreement you have in place and with the regulations under the Residential Tenancies Act.  For more information about property investment, head to the opes partners website. 
09:49
October 5, 2019
Vacancy – Fears That Stop People Investing | Ep. 25
In this episode, we discuss one of the key fears that stops people from investing in property – vacancy i.e. the fear of not having a tenant. This is a fear we often see. If a landlord doesn't have a tenant then they need to cover the costs of owning an investment property entirely by themselves – the mortgage, rates, property management, insurance and maintenance. This would be crippling for many prospective Mum and Dad investors.  We walk through why this fear is often more imagined than real. And the strategies that can be used by regular investors to curb vacancy.  For more information about property investment, head to the Opes Partners website. 
10:37
October 5, 2019
Should You Follow The Headlines In Investment Property? | Ep. 24
In this episode, we discuss whether you should get your investment ideas and strategies for where tho invest from the headlines.  We talk through the fact that by the time the newspapers are writing stories about high growth areas, it is often too late. And we discuss that for Buy and Hold investors, it is more important to look at a market's fundamentals rather than following the quicks wins that are often depicted in the media.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
10:24
October 3, 2019
The Main 2 Investment Strategies You Can Use | Ep. 23
In this episode, we discuss that there are only 2 core property investment strategies: Buy and Hold, and Flipping. Most other strategies people use are variations of the two. Buy and Hold investing is the 'get rich slow' strategy, where you buy an investment that you forecast will increase in value over time. Flipping is where you buy a property that is a bit 'run down' and then renovate it to increase its value.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:31
October 2, 2019
NZ Parents Would Rather Talk About Drugs Than Money With Their Kids | Ep. 22
In this episode, we discuss a study that was conducted by the Commission for Financial Capability as part of Sortd Money Week in September 2019. The study showed that parents would rather talk with their kids about sex and drugs, rather than money.  Parents would rather cover drugs (26%) and alcohol (27%) than tell their children how much they earned (14%) or talk about the risks of personal loans (12%). We discuss why this is such a problem for New Zealand, and out advice for what you should do about it.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:27
October 2, 2019
Interest-Only Mortgages | Ep. 21
In this episode, we discuss why interest-only mortgages are the preferred loan used by property investors.  We discuss how interest-only loans help you build your portfolio more quickly than using a principal and interest loan. And further, whether the banks are still lending on interest-only. To find out more about interest-only mortgages and property investing, head to our epic guide to property investment.
07:40
September 30, 2019
Rolleston – Should You Invest? | Ep. 20
In this episode, we question whether the suburb of Rolleston makes a good investment option. Rolleston is the largest town in the Selwyn District and is a 30-minute drive to Christchurch. Rolleston was dubbed the "city of the future" for many years. It seems as if it is coming true. The town has had 12% annual population growth over the last 15 years, which is projected to continue.  It also is an affordable option for investors, with median house prices around $50,000 less than neighbouring Lincoln (now Selwyn's second-largest township).  Read the whole transcript and find out why Rolleston makes a good property investment. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
10:57
September 29, 2019
Buying Your First Investment Property is Scary | Ep. 19
In this episode, we discuss how it's scary buying your first investment property. So don't feel bad if you're freaking out buying your first investment property too. We go through our personal investment stories and walk through what it was like when we made our start. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
08:38
September 28, 2019
How to Pay Off Your Mortgage Faster With Investment Property | Ep. #18
In this episode, we discuss 2 potential strategies you can use to pay off your mortgage faster, using investment property.  Both strategies involve leveraging your existing home to purchase an investment property. In essence, this means using the house to pay for itself. In the first strategy, you purchase a capital growth property, which will go up in value quickly, though will also require a cash top-up each week. Once enough equity has built within the investment property, you sell it and use the proceeds to pay down your mortgage.  The second involves purchasing a cashflow-positive property and using the profit to pay the bank back more quickly. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:40
September 28, 2019
5 Reasons Why Your First Home Mortgage Might Be Declined | Ep. #17
In Episode #17, we discuss the 5 reasons why your mortgage application for your first home might be declined. Not enough of a deposit Not able to afford the mortgage "Poor account conduct" Bad credit rating Not being with the bank you're applying to. Have one of them, you may be ok. Have 2 or more and it could be bad news. We also talk through how to work your way through these, if you any of these apply. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
09:00
September 26, 2019
Should You Buy The House Down The Street As An Investment? | Ep. #16
In Episode #16, we discuss whether it is the right financial decision to purchase the street that is just down the road from you.  We touch on why it may be better to diversify your risk across multiple areas of a city – or across several cities.  This means that all your eggs aren't in one basket.  We also touch on the fact that it is often better for your investment to be out of sight and out of mind so that it doesn't stress you out. This means that you're less likely to sell early.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:42
September 25, 2019
Should You Use Airbnb in Property Investment? | Ep. #15
In Episode #15, we discuss AirBnbs, and the benefits and drawbacks of using your investment property for Airbnb only, rather than tenanting the property. Andrew specifically walks through an example of the "sleep test" where, if you are struggling to get to sleep because you're worried about whether there will be bookings, then Airbnb is probably not a good option for you.  We also discuss that while Airbnb can produce better cashflow returns than a standard tenant, it does come with higher costs and more uncertainty, which some investors may not be willing to accept.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
09:23
September 24, 2019
Are Property Investors Greedy Psychopaths? | Ep. #14
In Episode #14, we discuss whether property investors are "greedy psychopaths". Ed recently had an article published in Stuff, New Zealand's largest news website. One commenter wrote, "property investment (speculation really) is a cancer on society by greedy psychopaths." We touch on that without property investors, many New Zealanders wouldn't have a place to live, since investors provide accommodation to renters. Far from being greedy, we discuss how many property investors are using investment property to save for their retirement. This means that they don't have to rely on New Zealand superannuation alone.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
08:15
September 23, 2019
What Ring Fencing Means for Investors | Ep. #13
In Episode 13, we discuss Ring Fencing. This is a new piece of legislation that stops New Zealand property investors from claiming tax benefits they were previously entitled to.  Under the previous regime, if a property investor made a tax loss each year, the investor could subtract the loss from their income tax.  This meant that they could claim a tax refund on the additional tax they had already paid.  This money would then be used to pay down the cash losses associated with the investment.  Investors can no longer do this. Which is why we give 3-4 different strategies that property investors can use to combat this legislative change.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
10:51
September 22, 2019
Why You Should Cheat On Your Bank | Ep. #12
In Episode 12, we discuss split banking. Split banking is the process of using multiple banks, rather than just a single bank.  Split banking means that you can protect your assets, control the proceeds of any sales you make, and potentially borrow more. This means you can grow your wealth and your portfolio faster.  Andrew also shares a story of clients who didn't use split banking and got stung because of it.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
08:16
September 22, 2019
What KPMG's Magnet City Report Means For Investors | Ep. #11
In Episode 11, we discuss KPMG's Magnet City report. Written in 2015, the global report introduces the concept of the Magnet City, a city that is expected to attract population growth of a particular type of people – young wealth creators. Young wealth creators are those who will start businesses and create jobs, which improves the economy of a region. This is important for property investors because magnet cities will make good property markets – they have growing populations of young people with higher than average incomes. Read our analysis of the Magnet City Report and its implications for the Christchurch property market.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
05:45
September 20, 2019
Don't Be Afraid Of Investing In a Flat Market | Ep. #10
In Episode 10, we discuss why you shouldn't be afraid of investing in a flat property market, where prices aren't increasing.  Andrew quotes Warren Buffet: "be fearful when others are greedy and greedy when others are fearful." And we talk through that investing in a market when prices are already going up means that another property owner receives the gains you might have achieved. Although we're not suggesting you should invest in every and any flat market, we are suggesting that you shouldn't be automatically fearful. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:10
September 19, 2019
Why Use a Mortgage Broker? | Ep. #9
In Episode 9, we discuss all the reasons why you would – and should – use a mortgage broker. That's whether you're a first home buyer or a property investor. You may look around on the internet and look for a mortgage calculator, and then think you don't need a mortgage broker. However, mortgage brokers do more than just calculate your mortgage. Mortgage brokers are your representative to the banks, and will go on your behalf to negotiate with multiple banks for you.  The key point to note is that mortgage brokers are your side. That's because they don't charge you anything, and only get paid when they secure the loan for you. That means they are incentivised to get the lending you want from the banks.  
05:26
September 18, 2019
5 Sources First Home Buyers Can Use For Their Deposit | Ep. #8
In Episode #8, we walk through the five sources first home buyers can tap into to pull together their deposits. The five sources are: KiwiSaver The Home Start Grant Savings The Sale of Existing Assets The Bank of Mum and Dad We also go through how to start tapping into each of these sources and some of the restrictions, rules and regulations around the government sources. To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
10:03
September 17, 2019
The Difference Between Equity and 'Useable Equity' | Ep. #7
In Episode #7, we discuss the difference between equity and useable equity + how that impacts your ability to become a property investor.  Most people become first-time property investors by leveraging their own homes to secure the deposit for their investment.  In the episode, we discuss the way to do this: 1) take out a separate loan against your own home, 2) use the money from that  loan as a cash deposit to secure a secondary loan from another bank, 3) use the two loans together to fund the full purchase price of the property.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:05
September 17, 2019
Investing In New v.s. Old/Existing Properties | Ep. #6
In Episode #6, we discuss the differences between investing in brand new properties or properties that have already been lived in before (existing properties).  We specifically discuss the differences in what banks will lend you towards each type of property and the level of deposit you need for each.  We also discuss the differences in tenants you might get, and why the decision actually depends on the investment property strategy you want to run with.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
07:52
September 15, 2019
How Much You Need To Get Started | Ep. #5
In Episode #5, we talk about how much you need to get started in property investment (and first homes). This topic came from an audience member who was on our website and specifically asked how much they need to get started. We've previously talked about the percentage amounts that people need to get started, but here we start to talk about the actual dollar amounts required. In the episode, we recommended looking at median house prices in your region to get a feel for what the average property costs. Here is the best place to look: https://www.interest.co.nz/charts/real-estate/median-price-reinz To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
06:59
September 14, 2019
What The KiwiBuild Reset Means For First Home Buyers | Ep. #4
In Episode #4, we talk about the Labour government's recent KiwiBuild Reset and what this means for First Home Buyers.  We talk about the Welcome Home Loans, where First Home Buyers now only need a 5% deposit to purchase a house (terms and conditions apply). We go through what those terms and conditions are, and touch on why property is more affordable now than it was a few years ago ... even though house prices have increased.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
06:49
September 13, 2019
How Much You Can Make In Property ... The Returns From Real Estate Investing | Ep. #3
In Episode #3, we talk about the returns you can expect to get from property and real estate investing. We also compare these returns to other types of investments. We talk about the concept of leverage. We touch on how you can use the bank's money to purchase a property ... and then keep all the profits as the house increases in value. We then speak about why property is one of the only asset classes where you can get '2 bites of the cherry.' You get rent from the tenant, and then the benefit of capital gains when the property increases in value.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
06:57
September 12, 2019
NZ's Retirement Gap ... The Financial Equivalent of Climate Change | Ep. #2
In Episode #2, we talk about the retirement gap, which is the significant gap between what Kiwis want to live on in retirement, and what they're actually on track to have. The World Economic Forum, recently said that ageing populations and lack of savings are "the financial equivalent of climate change".  We also cover why the retirement gap exists, how New Zealand's population is changing, and why many people in most rich countries will outlive their money by more than a decade.  To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
09:12
September 12, 2019
Why We're Starting a Podcast + What We Hope to Achieve | Ep. #1
In Episode #1, we talk about why we're starting a podcast. And that reason is that Kiwis love talking about property, they love thinking about the property market. But, they don't necessarily know how to get the most out of it.  That's shown by the number of pre-approvals for mortgages that New Zealanders get from mortgage brokers ... that don't end up getting used. That means that as a country, we're going out and saying we want to do something, but not always following through. We also introduce ourselves (andrew and Ed) and our backgrounds, then touch on why we think anyone should both listening to our advice at all. We finish off by delving into why we've decided to release a short, 5 to 10-minute podcast every single day (or at least that's the plan!). To find out more about the podcast and property investment in general, check out our Epic Guide to Property Investment in NZ.
06:05
September 10, 2019