Wealth Coffee Chats

We’re back! And it’s on like Donkey Kong 😁 2021 🚀

Today’s episode of Wealth Coffee Chats is all about We’re back! And it’s on like Donkey Kong 😁 2021 🚀.
 
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Enjoy the break......but don’t stop for too long!

Today’s episode of Wealth Coffee Chats is all about Enjoy the break......but don’t stop for too long!.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

Melbourne bounces back 💪🏻💪🏻💪🏻

Today’s episode of Wealth Coffee Chats is all about Melbourne bounces back 💪🏻💪🏻💪🏻.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

AirBnB.....massive $$$

Today’s episode of Wealth Coffee Chats is all about AirBnB.....massive $$$.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

The big rocks of property investing!

Today’s episode of Wealth Coffee Chats is all about The big rocks of property investing!.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

A lending boom is coming are you ready

Today’s episode of Wealth Coffee Chats is all about A lending boom is coming are you ready.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

750,000 properties without insurance

Today’s episode of Wealth Coffee Chats is all about 750,000 properties without insurance.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

Are they coming for your super

Today’s episode of Wealth Coffee Chats is all about Are they coming for your super.
 
For more great wealth content and to attend a free Property Investor Night go to https://positiverealestate.com.au/pin/
 

The 16 most valuable properties I have ever built!

Morning guys? Monday morning. Oh, let me just check if this has been on a wallace. There we go. Well good, morning everybody? Jason here stopping by for another morning coffee and a chat, I hope everyone's well. For those jumping over for the first time, Jason Witten's my name. One of the founders of the Positive Real Estate been helping property investors for over 18 years, building a property portfolios and across Australia, New Zealand and one in Belinda, been investing over 20 years myself. Today, I wanna have a little yarn about the 16, most valuable buildings. Valuable properties I've ever built and I'll tell you a little bit of a story. When I first started out investing, the reason I started investing many years ago, not only to create some wealth but I actually wanted to build schools. I used to be a teacher at a school in Sydney called Knox Grammar School and I loved it. I loved teaching. I loved helping young people and the problem with being a teacher for me was I didn't earn very much money and what sometimes I don't know if any of you guys listening in get this but sometimes you do something that you love, it's awesome. But the financial rewards for it, are poor, they're not great and you're looking into the future and go gee, but it's in the next 40 years earning this much or doing this much then I'm not gonna have much to show for it and that's where I got to when I was teaching at Knox Grammar School and a buddy of mine gave me a book called Rich Dad, Poor Dad. I don't know if anyone's read this. I might've talked about it before, but he gave me this book Rich Dad, Poor Dad, and sort of said, well the job I'm not doing any investing, morning Alison, morning Haime, I'm not doing any investing. You know, I love my job but my income is pretty insignificant at that point in time when I was a teacher in Sydney, it was $36,000 a year. So 36 grand I'm living in Wahroonga and if anyone knows Sydney or all that but it's a pretty flash place, Wahroonga. You know, I'm living in a one bedroom studio flat with my partner, Shay. When we're just having a nice time, we're getting pie but we're not, you know, growing our wealth. So I really wanted to, you know make a change in the education system. Also, I was really passionate about it. I still am very passionate about education. I love education. I think it's one of the keys to changing anybody's life. A good quality education about a subject that can, that matters. So I was a teacher. I read the book, Rich Dad, Poor Dad. I had a bit of an Epiphany. Wow. This could be for me. I could actually buy some investments and investments can grow my wealth and do you know what went on? When I've got some money I'm going to build schools. I'm going to build a school in Australia 'Cause I think the education system could be done a little bit differently especially for young fellows, but you know for anybody, girls or boys I think the education system needs an upgrade personally that anyway, that was my plan. That was my passion and off I went. And a few of you guys might know the story but I bought a few properties. You know, some of them went well some of that didn't go well learned a lot of things skinned a few days. Anyway, fast forward, you know, literally sort of 10 12 years, you know, around the 2012, 2013. And I started in 2001 investing for myself. So 2012, 2013 and I'm feeling completely lost despondent. I just feel my life has just gone in the wrong direction for those sorts of things. I've made some money, absolutely started the business. It's going really well. But I don't know about you guys. Like sometimes when you've got all these things and things seem to be going well over there purpose, the value, the real value, wasn't as meaningful to me. Money is really important. I'm very, very, I'm very, very happy and focused about making good money, a lot of money. 'Cause I can do some good things with it that that's like I don't have a problem with money. Some people do. Some people think, oh, money is evil, rubbish. It's the people who do stuff with the money that they've got a problem . Anyway, I was there. I felt off track with my purpose in life and I'm feeling quite despondent. Actually. I was on my way to Adelaide and I was going to one of our mentoring workshops in Adelaide, feeling a little bit down and walking in through the airport, I saw a book on the shelf, just jumped out, you know those airport bookshops, leaving Microsoft to change the world. And it caught my eye a lot. Okay, cool. I'm gonna grab a book to read. And I read this book on the plane and it literally changed the direction of my life. And I, I suggested it the other day to a few people to read for me, it was an absolute game changer. And that's it like, I don't have to build a school probably cause it's quite hard to build a school in Australia. I could do, I could build schools elsewhere and have a huge impact. So after that I read the book, went to Adelaide. I actually canceled going to the seminar and I actually locked myself in my hotel room and I wrote a new plan for the next decade. And it was about creating wealth for myself, but also when I can and then magnify and multiply in another life. So we started a relationship with a room to read the foundation and started building schools. We built a school in Nepal and 500 kids went to school. Okay. It costs $30,000, 30 Grand. We built a school. It was amazing. Okay. And it's really cool. Like it, read the room to read philosophy. It's about a co-investment in a community and the community has to put in the land and the community has to do some stuff and it was brilliant. I love it. It was really, you know, 98% of your contribution gets to the community and funds the community going forward. And so to today 16 schools, 6,000 kids, 6,000 go to school every day again. 6,000 kids. Imagine the return, imagine the yield imagine the growth on that. Yeah. Into the future. And we're building our 17th school right now. And you know, like I don't I don't tell the story to show off or say how good am I or whatever. And thanks Gang. Like, I really appreciate your feedback, but for me and maybe for you too, like sometimes, you know, the pursuit of money, like, Oh, did your property go up in value? And all of this other stuff it kind of seems a bit fucking naff, don't you reckon? If you get wealth in whatever way then for me it feels great to grow that wealth and then reinvest it in other places that had this exponential return gives you the warm and fuzzies anyway, so that, you know, yeah. Giving back man, you know, because this is what I believe. I believe it's our duty. I believe if you get a concept If you get it Your job is to teach and give back in one way, shape or form. You might don't do it directly as an individual But carry your family and making sure you're safe take some dosh and do something good with it. Change the world in a little while pretty is for you. 'Cause I think that's, I think that's good. I think it's cool. And you know that's the philosophy really that is founded positive you know, Sam and all of the coaching team. they love this stuff too. And you know, we let them mention clients now as well. That's part of our philosophy. So, you know yeah. And like , Shay said like we haven't like we don't sort of go visit them. It's something that community gets to do without it feeling like charity, let's be honest, we give we add value and we know the universal pay that forward expedientially, which is awesome. So we love doing that. I thought I'd just share that one today. They are the most valuable 16 buildings I've ever built. For me they're like they're the ones alright they my best investments ever. Dollars and cents, I get returns from other things. But for me the compounding future value, I think just imagine that six thousand, eight thousand, ten thousand kids going to school. One of those kids would be probably many of them be brilliant, amazing and change the world in ways I'll never get to see. So that's what I love about that stuff. So that's what for me, that's what money can do. Alright? Annoys me, these Facebook warriors sitting there carrying on like pork chops, being negative about people who've got some resources that they've got no idea what's going on and I don't have to answer them and nor do you, just do something important, useful, meaningful whatever it is like don't my thing as your thing like do your thing, but don't hold back, don't ever hold back. 'Cause you might find yourself one day a bit sad and despondent in an airport like Adelaide. Hopefully pick up a book and read it and change the direction of your life, might be nice. Anyway, Gang, hopefully. You're awesome and well. I thought I'd share about share that one today. 'Cause it was sort of bouncing around in my mind and hope you all have an awesome day and check back in tomorrow for another coffee and a chat, awesome gang. Alright. Take care hey. See ya. Bye-bye.
 

Old properties are they worth it

- Hey, good morning everybody. Jason here, diving for another quick coffee and a chat. I everyone's well, a little bit late this morning. Trying to get myself organized on a Friday. Hopefully everyone is well while the internet is warming up and people are jumping on quickly do the intros as I always do. Jason Seccond hand my name for those who are dialing in for the first time. Good morning, Good morning Justin. Great to have you here. Hey Damien Morning Alison. Good to have you guys on as always and supporting thank you very much. Been coaching property investors for quite a while. Hey Megan. Morning pen and investing myself over 20. So a good question. There was a question yesterday and I can't remember who asked it but I talked about the different types of properties houses versus apartments versus townhouses Morning Michelle and it's good conversation because it comes up all the time. And the answer to questions like, are apartments worse than houses or houses better or townhouses better. It's a very subjective question. And it all depends on what you want and what your budget is. And hi morning Brad depends on your budget depending on what you're trying to achieve, depending on the city you wanna buy in there's a whole lot of variable in that. But yesterday Preet did a follow up question from yesterday's chat, a coffee and a chat. I need a little sip of my coffee. Oh yeah. she did a follow up question saying, "I bought an old property "quite an old property in an area in Melbourne. "It was a two bedroom unit." It has an old property in Melbourne. "Should I renovate it to get better rent or sell it? "It's gotten the approval of two bedrooms unit at the back. "It's negatively cashflow by 500 bucks a month. "Please advise." So good question Preet. And this is the challenge. This is the mathematics, the challenge of sometimes of properties. And let's talk about secondhand properties today. By and large older houses end up with larger land content. And there's a little bit of a rhetoric that goes around, that more land equals better value better wealth, better capital growth. Now that's kind of true. And it depends on where you looked at. That does tend to give you a little bit better growth. The problem is The problem is the cost of the extra land. And what Preet is probably now experiencing is she may have bought land, bought in an established suburb an old house, that house now, cause the land doesn't attract the rent. Gang hear me when I say this, the size of the land has nothing to do with the rent you can charge for your property. Unless it's a commercial property or something else. And this is the part where you just have to be strategic. You just got to think this stuff through. Because it's not the capital growth that causes you grief nine times out of 10. It's the lack of rent or inability for the rent of the house, the dwelling to cover its own costs. And unfortunately right now, Preet is experiencing that as a property investor. Maybe thought well you know I'll buy house, it's even got an approval for another dwelling on the back. Fantastic. Add the value. There's upside there, there's wealth there, there's capital growth there. And we get a bit starry-eyed sometimes. And maybe this is true Preet Maybe this is not. So let me know if it is or isn't. I'm choosing this as an example today, to give you a question and answer a few questions. we see the add value. We see the upside of the property deal and we give that more credibility than the cashflow issues of owning a deal. The cashflow issues of owning a deal are far more important to you, for most people than a future, maybe capital growth and don't get this wrong. Okay. You have to make sure that the cashflow from that property is going to sustain itself and support you into the future. Okay. That's what I'm talking Preet right now has got probably a good property there that if she spent 30 to $50,000 on a renovation and got the rent up, so it can pay for itself would be worth keeping. My question to Preet and often my question to you as a property investor do you have 30 to $50,000 of excess equity accessible cash to renovate that property to get its rent back up? Because Preet got to get the rent up by my mathematics $125 a week to cover its monthly shortfall. That is a huge, a huge up uplift for the rent By and large that's not going to get done by paint and carpet and a couple of new light bulbs. That's not gonna happen in a renovation. That's why I dislike for most property investors second hand properties because you don't have the money to cover the cost of them, the houses on them are usually old designed very dysfunctionally and will require quite a costly upgrade to get them up to speed in the rental market. And good morning Shaquille by and large, you get to the end of wherever you are and you might have equity in the property, but the rent is so low. It doesn't support you from a servicing point of view and you can't get access to the equity. So it's a confusing thing this thing gang, By and large yes, If you had a nice big, chunky piece of land the value might go up. But the house value the house, the dwelling is what gets rented gang. The land does not bring you income. Okay. And we see this all the time when we're analyzing. Hey morning Nicole We see this when we're analyzing brand new houses right now in the marketplace. Okay. When we're analyzing the house and the person's like, "Oh, like I've heard land is lands the best thing. "So I'm going to buy the biggest piece of land I can." And so what happens is they go for a 500 or a 550. If you can find it square meter land in a nice new estate, 600 if you can get it. They pay $100,000 more than the person next door for the land, then the person next door for the land paid for their 400 square meter block. Right? And let's say it's two investors. The person on the 400 square meter block has a positive cashflow property. The person with the $600,000 block or the 600 square meter block they paying $100,000 more has a negative cashflow property in the same location, renting to the same tenant. The tenant's not going to pay $100 more just because you bought a bigger piece of land guys. It's not gonna happen. So we have to check our rationale in there. Okay. So it's a long way round Preet to answering your question. The answer to your question is, it does depend on the location. If the location is amazing and you have equity or cash in your property now that you could afford to do the renovation and build the two bedroom apartment at the back, then absolutely. Like I would if it all ticked all the boxes I would add the value because that's the highest and best use of the real estate Preet. Okay. Like I would. Okay. That's what a second hand add value property is for. And if you bought it well, if you've purchased that property well Preet, if you manage your budget well, you'll probably add value and have some instant equity over and above your costs. That'd be ticking the box would be awesome outcome. The challenge is, it's going to cost you 150 grand in the backyard to add the two bedder and probably another 30 or 50 grand to renovate the house. Do you have that money? And this is the conundrum for property investors. You can see the value but you don't have the cash, your strategy wasn't there. You didn't understand how to create or direct your resources to the strategy, to get the outcome. And you're retrofitting a question like light based on something you did ages ago, and it's hard to change it. But preet, happy to have a one-on-one conversation with you Preet. If you're listening in, reach out, that's what we do. We do some coaching. It could be you just need to restructure where you're at and go for it Or it could be preet, you have to sell it and buy a better property next time. Understanding, Hey Astrine understanding your limitations of your resources. Because we say what we do is we see possibility as property investors, which is awesome. And then our resources sometimes don't match the possibilities of the things we gonna buy and there's a gap And in that gap is disappointment. And in that gap can sometimes be quite some challenges. So gang that's why I believe having a good coach or a good mentor is essential in this game as you roll into it. But there you go. So Ben asked how about renting out your PPR to help with the lending? Absolutely mate. Like I've done that, I've done it. Many of our clients have done it. Rent out the place of residence. You can rent it out for six years, capital gains tax free gang, as long as you don't nominate another principle place of residence. So there's some extra benefits in there too which is quite cool, which is quite good. There was a question yesterday, or there was a little bit there was one thing yesterday also before I finish up this morning about my topic, about the principal place of residence, the PPR upgrade strategy gang. I think I did that one a couple of days ago, the PPR upgrade strategy. And I think it was Tanya asked about, if I rent out a room in my property is there a problem with capital gains tax? And the answer is yes. If you rent the room out, then that will in your principle place of residence. If you earn income from the rental room then it will have some capital gains tax a fix. Now you have to have talk to your accountant about that. However, my answer was don't rent the room, have the company if it's there, pay for amenities, pay for the electricity pay for water, coffee, tea, toilet paper, internet Don't rent the house. It gets to use the amenities. That's a good one right there. So chat to your accountant about that gang. There's some pretty cool stuff in there. Being smart about it is the way to go. Michelle got to put a tiny house on a property. I think that's a good idea Michelle. But the problem is Michelle, probably sometimes we don't want anyone on our properties, do we? But Oh good. Hi gang gang well listen, that's it for me today, coffee and a chat done and dusted. It's never black and white this stuff, there's always the devil's in the detail, right? So if you need any help gang, you need any support advice. Reach out. Me and my coaches around Australia and New Zealand love to help property investors. So track us down somewhere on our Facebook page or our website. There's a few events we do every now and then Be cool to have you guys along Tonight just before you go. Just before I go, doing Wine in Wisdom, Andy Fenton and myself, Andy from the banking and share world. Me from the property and finance world. And we debrief, we chat every Friday night, around about five O'clock a bit of a wine and hopefully some wisdom from the week. Wine and wisdom. Andy Fenton. Join us tonight on a Facebook live if you're up for it gang. And we just about what's going on. Favorite going in the secondhand favorite going on in the budget. Favorite going on this week in the world of lending and we do a bit of a debrief. Have some fun, maybe 45 minutes an hour conversation. So if you're up for it, grab yourself a wine a beer and come and join us Wine of wisdom 5:00 PM. Queensland time, no 4:00 PM Queensland time, 5:00 PM everywhere else. Anyway, hope you are all well I have a good one gang. Join us tonight if you're up for it. And if not, have an awesome weekend and chat to you again on Monday. Around about the same time. Around about eight o'clock QL daytime for another coffee and a chat. Take care, have a good one. That's it for me. Bye. Bye.