The Property Trio

By: Cate Bakos David Johnston and Mike Mortlock
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  • Summary

  • Formerly The Property Planner, Buyer and Professor, our show rebranded in 2023 to The Property Trio.

    Residential property is the only asset class we live in, it is where we raise our families, and it is our most expensive investment, yet property advice remains unregulated. Our objective is to educate time-poor professionals through deep insights from our experts who have provided thousands of Australians with personalised advice and education spanning two decades. In a climate where we are overloaded with information and one size fits all recommendations from the media, well-meaning friends and family and so-called advisers, we will distill the raw truth from the ill-informed.

    So join the Property Planner, David Johnston, The Property Buyer, Cate Bakos and the Quantity Surveyor, Mike Mortlock as they take you on a journey of discovery through the maze of property, mortgage, and money decisions to empower you to create your ideal lifestyle!
    Copyright The Property Trio
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Economics Personal Finance
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Episodes
  • #291: The Truth About Building Inspections - What They Reveal, What They Don’t and How to Ask the Right Questions

    #291: The Truth About Building Inspections - What They Reveal, What They Don’t and How to Ask the Right Questions
    Jan 6 2025
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    This week, Dave hosts the show and the Trio chat all things Building Inspections. Cate starts out by clarifying the purpose of a building inspection. Contrary to popular opinion, building inspections aren't tickets to renegotiate a sale. Under certain circumstances, a renegotiation can occur, but the market conditions and competing buyer numbers will likely determine this.

    Building and pest inspections each require a distinct qualification, and Cate sheds light on the differences and methods of each, and the aspects of an inspector's findings that are conducive to pest infestation.

    Dave broaches the costs that can rack up when buyers are in the hunt for a property, particularly in the case of auction campaigns. The Trio chat about some of the ways that buyers can approach this issue. Cate also has some tips about 'on-sold' reports.

    Sometimes property negotiations can move very quickly, especially when an auction property receives a strong offer prior to auction day. Cate steps the listeners through the timeline that buyers need to be mindful of when arranging a building and pest inspection. Dave highlights the importance of managing a due diligence checklist.

    Should buyers get a building inspection before they negotiate a deal, or after? There are many different situations that buyers face, and sometimes it's not possible to avoid organising an inspection prior to securing a property. The Trio chat through some of the situations that buyers face, and how they need to navigate the building and pest inspection process.

    The Trio break down the building and pest inspection clause in the contract. From legal wording to the options that buyers have, this detail may be tiny, but it's very important.

    Cate shares some good questions for buyers to ask their building inspector when a fault or an issue is identified.
    • What is the severity?
    • What do I need to do to address the issues?
    • How quickly should I do so?
    • What is the risk if I don’t address immediately?
    Building and pest inspectors have their limitations and there are a number of things that the inspector won't check. Cate talks through some of these scenarios for our listeners and provides a real life example that she recently experienced.

    Lastly, the Trio chat about how buyers can source a great building inspector, and the secondary benefits of building inspections.

    ..... and our gold nuggets!

    Mike Mortlock’s gold nugget: Mike shares two gold nuggets.... the importance of impartiality when asking for a building inspector recommendation. Mike seconds Cate's firm recommendation to ensure that a discussion with the building inspector ensues. Relying on the report alone can lead to some panic for many, and obtaining clarity and context on the issues is valuable.

    Cate Bakos’s gold nugget: Some things can look worse than they are, and cracking isn't always a big deal. Other things that seem benign can be problematic. Building inspections are valuable.

    Show notes: https://www.propertytrio.com.au/2025/01/06/the-truth-about-building-inspections/
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    47 mins
  • #290: Five Ways Property Buyers Fail to ‘Property’ Plan and How to Create Your Winning Plan

    #290: Five Ways Property Buyers Fail to ‘Property’ Plan and How to Create Your Winning Plan
    Dec 30 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    This week, Dave has prepped a great episode for our listeners. Cate opens up the conversation with the first of the five mistakes that buyers make when they fail to plan. Failing to set clear short and long term goals can undermine an investor's outcome from day one. Dave provides some clear pointers for buyers to adopt as they encounter this critical first step.

    "Entering the property market without a plan or without goals is like running a marathon with a blindfold on. You’re bound to trip up and face setbacks."

    Mistake number two prompts some good discussion between the Trio. Jumping into the market without a strategy for the next purchase is unfortunately something the Trio hear about often from remorseful buyers. Making property purchase decisions that don't align with goals is more common than people would think.

    As Mike suggests, buyers need to consider so many facets of the property game; from managing risk, savings buffers, cashflows, tax positions, and of course, where the family home fits. Once you have aligned these aspects, you can then determine the -
    • macro location such as the city or state that best suits that price range,
    • your goals for the property itself for yield and growth,
    • considerations such as minimising land tax,
    • owning in different locations for diversification,
    • factoring where different cities are sitting in the property cycle
    You can only take this macro view and planning approach to your next purchase strategy if you start with goals and a long-term plan.

    Mistake number three is allowing emotions to dictate decisions. There are many ways in which emotions can creep up on us. To name just a few, bias can grip, sometimes it's fatigue, and other times it could be fear of missing out. Dave shares some examples that he's seen people fall prey to over the years.

    "This often happens when we don’t have long-term goals to keep us focused and maintain perspective", says Dave.

    How can buyers balance their emotions and avoid mistakes? Mike's tips are simple and objective, but not easy to adopt without a clear plan.

    Mistake number four: Believing in the get rich quick myth. Dave sheds light on some of the short-term victories that seem enticing and he warns that buyers also need to assess the downside risk and be comfortable with it. Buyers need to be very wary of a range of spruikers too; some will promise double digit returns, while others could be masquerading as advisors while they sell off a stock list.

    "Short-term investments carry high risks, from unpredictable market conditions to expensive renovations to blow outs in costs for developments. It requires significant expertise and resources. Unless you are a successful developer, you generally need to adopt a “get rich slow” mindset."

    Lastly, mistake number five relates to accumulating properties without considering cashflow and savings buffers. Dave's experience with investors shines through when he lists a variety of scenarios he's witnessed over the years in relation to large property portfolios. While many investors get it right, there are plenty who don't. Our recent economic conditions have placed pressure on some multi-property investors and Dave has some good words of wisdom four those who place a value on a large portfolio.

    ..... and our gold nuggets!

    Dave Johnston's gold nugget: The key to property investment success is to view it as a series of informed strategic decisions that align to your short and long term goals.

    Mike Mortlock’s gold nugget: Mike relates an investor scenario to the recent Block series

    Cate Bakos’s gold nugget: Emotion counts for so much and Cate suggests that there is only one type of property that buyers should be emotional about. "You should be entirely emotional about buying your home. Make sure you buy a property that you love. But for your investments, you don't have to love them. You just have to be proud of them."

    Show notes: https://www.propertytrio.com.au/2024/12/30/five-ways-buyers-fail-to-plan/
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    39 mins
  • #289: Shared Equity Strategies - Making the Most of Government Schemes and Property Planning Strategies as You Transition to Full Ownership

    #289: Shared Equity Strategies - Making the Most of Government Schemes and Property Planning Strategies as You Transition to Full Ownership
    Dec 23 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    A lovely listener writes in to us with some questions about the Victorian shared equity scheme. Shared equity opportunities aren't restricted to just Victoria though. This ep is relevant to any Australians who are considering a shared equity option with the government.

    How should Luke approach this? Should he pay it down with savings (or debt), sell and upgrade, or convert the home to an investment in time?

    Some background on our listener: Luke is 30 years old, high school teacher, on $120k annual salary, 1 baby, 2 dogs, 0 cats. (We like that dog to cat to child ratio!) His partner will return back to work in about 6 months on approximately $70k but this timeframe is up in the air to some degree subject to how life with the baby and parenting goes, but when she does go back, this will take their total income up to $190k. Luke bought his home in the Northern suburbs of Melbourne for $670k in 2021 with the Victorian Homebuyer Fund’s help, contributing 5% of the purchase price himself and with the Gov’t Fund covering another 25%. The home’s value has since increased to around $720,000 to $740,000, maybe more.

    Dave talks our listeners through the government's stake, and how the rules determine the equity split as the property appreciates. Luke can repay the government in various ways, but which way is the optimal? Tune in to find out. Luke needs to be aware of the calculations that govern the methodology for government payout.

    Mike lists some of the rules that the government have determined for equity buy-back. From bulk payment minimums to valuation steps, the rules are reasonably structured. Should Luke reduce the government's share gradually, versus saving up to repay the government later? Every situation is unique, but Dave shares some ideas for our listener to consider. One is a bit outside of the square, but it's a great discussion point.

    The Trio canvas the pro's, cons and realities of shared equity. Is a Lender's Mortgage Insurance premium something that a shared equity purchaser should consider? As Mike eludes to, it's really a question of timing, planning and goals.

    Cate challenges Mike.... those who consider shared equity schemes with the government need the help, and she points out the merits of such schemes. Luke has a few options to consider, but a few restrictions to bear in mind also. The Trio wish him the very best of luck with his property journey. .....

    and our gold nuggets!

    Mike Mortlock’s gold nugget: Mike highlights the upside for those who have limited deposits.

    Dave Johnston's gold nugget: Aim to maximise your ownership as soon as possible! Full equity ownership is one benefit, but the options to renovate, improve, extend, invest are exciting too.

    Cate Bakos’s gold nugget: For those who can enter with a small deposit under the First Home Guarantee Scheme or Home Guarantee scheme.... they could also consider these options too.

    Show Notes: https://www.propertytrio.com.au/2024/12/23/shared-equity/
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    41 mins

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