This will probably benefit anyone who is thinking of a career in property or property funds management. Would consider myself mid-senior level. My highlights:
Ask away!
"Ask me anything"
Refuses to answer the very first question and one most people want to know
Not my space, that’s the transactions team
Has your bike riding improved?
Yes, was pretty good during COVID, where there are no cars around. But there is the annual bike charity ride that goes every year that goes to providing housing for disvantraged groups: https://give.pif.com.au/tour-de-pif
There we show other property groups who has the best calves!
If you won $40 million in tonight's lotto, would you go back to any of those jobs full-time with normal work hours and leave entitlements
Stay long enough to cherry pick the right guys to start the RudedogandDweebs Property fund. We will aim to list in 3 years.
idk who negged u, but nice response
What insurance company are you using as a landlord?
We generally go through brokers. Trick is to suss out brokers who are the most transparent, and also those that give out the best freebies. But so far the best things we have were duffel bags and brollies. Mostly I'll seen GSA being used.
Dark mode or nah?
[AMA]
What colour underwear are you wearing.
NONE… Save money that way!
it it a worthy career
Its an interesting career if you care enough to get into the weeds. Lots of interesting stories that happen at the asset level. Had to deal with delinquents jumping off floors in retail centres, as well as investigating how people got onto top floor of commercial buildings to do their parkour and what not.
But right now is a bit of a tough period, with falling property valuations in certain parts of the industry, as well as being crunched with higher interest rates. Just got to ride out the storm to make it worthy.
Do property prices double every 10 years?
Depends on where you are. But feel like I'm walking into a trap of the boomers vs milennials debate.Here's my favourite article on the topic.
https://matusik.com.au/2021/07/06/140-years-of-house-price-d…
Mid-senior: you aspire to a senior position, haven't yet attained one but feel too valuable to be considered middle. The majority of Australians reach peak income around age 43; will this be the case for you or is there a pathway to a senior and/or executive role?
Would say the property industry is paid reasonably well for an asset class that is quite stable. Like the asset itself, I have seen pathway to senior roles come from having a history of being in the industry, as well as longevity in roles. For myself, more would be nice, but I'm comfortable being the subject matter expert in my little space.
What's the most valuable lesson you've learned as a property landlord?
What's the most interesting project you've worked on in your career?
What's your opinion on REITs vs direct property ownership?
Have a combination of blue chip REITS, but personally have had more success with direct property investment, as in residential. Both metropolitan as well as regional
What's the biggest financial mistake you've seen in property investment?
What resources do you recommend for those wishing to start their property ownership journey?
For personal property ownership journey, during my time a few years ago, I relied on forums such as somersoft.com. I believe that the forum is archived and is still available now. But these days, the reincarnation is propertychat.com.au. Browse the forums, absorb knowledge, choose your partners (brokers, conveyancers, lawyers) from a known source, and based on what they spit out there (not affiliated).
Read a few books, and join some of the more active local Australian facebook groups on property investing. 50% of the time, people know what they are talking about, and the other 50% are asking repeated questions which get answered anyway. Soon you will see a pattern of what most people are saying, and you can bring your own common sense about what is the truth.
But personally for me, your broker is the first spot. Interview them thoroughly so that they are not just a one-trick pony wanting simple transactions.
What did you do as a landlord to best structure your investments and bank accounts to help with expenses and reducing costs? Since you’ve seen all sides of property aspects.
Interest only loans - Worth staying on short or long term?
Depreciation report - before or after renos?
Negative or positive gear - In your view, Pros/cons of having either.
Is it worth switching banks for better rates constantly and in a short time frame?
Think you are asking about property investing as a normal investor.
Interest only loans - If you are wanting to grow and grow. The key is cashflow, and maintaining a cash buffer for yourself. Stay on interest-only. Maximise your borrowing capacity, and if you finally reach your limit, you can still park the excess cash in your loan offset account.
Depreciation report - Always after. Normally, you won't be doing too much renovation if you are buying property personally. But in the commercial space, depreciation reports are updated every few years to take into account the capital expenditure that has been put in.
Negative or positive gear - You gotta take a view of what you are buying being able to growth in rent and capital growth. So if you bought a new build, you will be negatively geared, but buy on the basis that it will be postively geared due to growth, which sometimes take a few years. But in this environment, most property purchases should be negatively geared, with rates sitting at 6%+. Folks who bought into Perth 2-3 years ago would have experienced great growth to experience this accelerated growth.
Is it worth switching banks for better rates constantly and in a short time frame - You got to trust your broker. I do have a property portfolio, and found it easy to swap around when the structure was simple. But when you grow and scale, you will find that consolidating loans/banks will be more effective as you grow… until you don't. Commercially, it depends on how much pressure the banks have in filling their books. I have seen a few time bank bend over backwards, if we consolidated and brought all our business to them. They will give better rates, and hopefully more relaxed terms around covenants. That normally lasts for about a few years.
Hello. Should I use extra cash to pay off my existing investment property or my PPOR? I owe a about a third on the investment property than what I do on my PPOR. I intent to retire in about 15yrs when i turn 60 and can access super.
Generally always get rid of non-deductible interest, in which case is your PPOR. All things being equal at tax time, if you have to pay interest, pay interest on your IP and get a little back from the tax man.
And you don’t have to pay ‘pay’ back the bank for your PPOR loan. Just shove it into the offset until the offset equals the loan. And only restructure into have a reason to.
Your biggest $$$ commission?