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
  • #288: Market Update Nov 24 – Perth, Brisbane & Adelaide Slow, Listings Surge in Perth & Adelaide, Rate Cut Predictions & Productivity Woes

    #288: Market Update Nov 24 – Perth, Brisbane & Adelaide Slow, Listings Surge in Perth & Adelaide, Rate Cut Predictions & Productivity Woes
    Dec 16 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    The Trio are back together in the studio! The Trio comment on some of the interesting indices for the state of the nation in the month of November.

    Cate marvels at regional performance outstripping capital city performance. The big tier, top three cities are showing weaker growth and Melbourne has continued to show modest price falls.

    Dave predicts that 2025 could be the story of Melbourne and Hobart. He shares his rationale... let's see how his prediction lands!

    Mike points to the stratified price figures and notes that the lowest quartiles are outperforming, all but for ACT and Dave touches on the per capita recession we are all currently in. Canberra's public servant population defies this trend.

    Rents are dipping, but they are all still in positive territory, as as Cate mentions, the rental growth is still outstripping CPI.

    "Any other precedent would say that these are huge numbers, but they've come off the boil a long way," says Mike.

    Rental increases now are normalised now though, and as Peter Koulizos has said before, rents had to play catch-up.


    Rental yields have decreased substantially for many regional cities, and Cate considers some of the challenges and changes that have impacted quite a few regional markets since COVID lockdowns.

    Sales and listing activity is a great insight into market supply. Cate doesn't expect listing figures to dramatically increase and she hints that pent up demand could show itself in early January in the larger markets. Could the start of 2025 be a bit different to recent past years? Tune in to find out.

    Contrasting the listing figures from October to November tells an interesting story too. Hobart's decrease in listings when contrasted against this time last year is significant. What is happening in Hobart?

    The Trio chat about the pressure on the RBA to control monetary policy, and they consider the key drivers and data points that our RBA are keeping a close watch on. From productivity to services inflation, unemployment to public sector job growth, (just to name a few) there are plenty of moving parts that remain a challenge.

    The quarterly GDP figures are out for the month of September and the strongest segment leading the charge is Agriculture, Forestry and Fishing at 6.5%.

    Lastly, the Trio share their thoughts on when the next rate movement could be!

    Show Notes: https://www.propertytrio.com.au/2024/12/16/ep-288-nov-market-update/
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    43 mins
  • #287: How Government Interventions Are Shaping the Property Market – The Real Impact & Side Effects of Property Regulations

    #287: How Government Interventions Are Shaping the Property Market – The Real Impact & Side Effects of Property Regulations
    Dec 9 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Today, Cate and Mike tackle a broad array of government incentives, legislative changes and initiatives. Have they all worked? And what are some of the unintended consequences.

    "Lack of consultation is probably a root cause of some of these negative outcomes."

    The rollout of the recent Victorian rental minimum standards is one key example. As Cate points out, some of the broad brushstroke recommendations weren't all practical. The investor-led sales have also distorted the market somewhat, (for both sales and rentals) particularly when older style houses in need of renovation are concerned.

    From the Pink Batts scheme to cottage industries, the Duo cover off some of the negative news stories from the past.

    Mike dares to touch on land tax. Queensland's repealed land tax legislation is a great case in point, and Mike's company's data supported the fact that the policy was conceived. Over a 98 day period, a 17.8% drop of investment activity in this short period resulted. Data is so valuable.

    Pivoting from sales activity to purchaser activity, Mike and Cate consider stamp duty concessions. Thresholds are important to note, as concessional caps sometimes don't seem to make a lot of sense. Which states have got it right, and which states are missing the mark? How do concessions distort markets?

    Cate cites the Victorian COVID recovery stamp duty stimulus and she discusses the impact that it had on median sale prices and market segmentation.

    Tackling underquoting is an enormous problem for regulators. Legislation on quoting regimes across the states and territories varies greatly, but some measures that have been intended to solve the issue have amplified the issue even further and convoluted the process.

    And how has rent-bidding legislation impacted the industry? Tune in to find out...

    Lastly... what is the lasting legacy of the HomeBuilder grant? Did our government get it right? From trade shortages to untenable deadlines, there were plenty of challenges for homeowners to manage. Market distortion was a key problem, according to Cate. Mike quotes a 33% material input price hike during the COVID period.

    ..... and our gold nuggets!

    Mike Mortlock’s gold nugget: “If you move the needle somewhere, there is going to be a ripple somewhere else.”

    Cate Bakos’s gold nugget: Foreign investor surcharges rattled Melbourne's market a decade ago. Specific areas were impacted and local owners felt the brunt of this.

    Show notes: https://www.propertytrio.com.au/2024/12/09/government-intervention/
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    43 mins
  • #286: Is Investing in Property Still Worth It? Navigating the Shifting Property Landscape

    #286: Is Investing in Property Still Worth It? Navigating the Shifting Property Landscape
    Dec 2 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Today, Cate and Mike dive headfirst into the findings from the Property Investment Professionals of Australia (PIPA) Sentiment Survey, taking the opportunity to unpack some pressing questions while Dave is away. A big thank you to all the investors who contributed to the survey—it’s their insights that shape episodes like this!

    Why are more investors selling properties in major cities like Brisbane, Melbourne, and Sydney? Cate and Mike explore the rising compliance costs, government policies, and economic pressures that are prompting these decisions. They also examine how this trend is reshaping the rental market, leaving renters with fewer options in an already tight landscape.

    Mike highlights a key survey finding: While investor sentiment has cooled, nearly 46% of respondents still believe it’s a good time to invest in property. He delves into why Australia’s long-term housing fundamentals—like leveraging, supply constraints, and resilient demand—continue to appeal to savvy investors.

    Cate reflects on the contrasting approaches states are taking to housing reform, with Victoria’s “hammer of Thor” policies driving investors away, while WA’s incentive-driven approach encourages positive change. Together, they share insights into what reforms are stressing investors most and how policies can better support both tenants and landlords.

    They also tackle the challenges of cash flow shortfalls caused by rising interest rates and costs. While some investors are forced to increase rents, others are reluctant, choosing to keep loyal tenants even if it impacts their bottom line.

    ..... and our gold nuggets!

    Mike Mortlock’s gold nugget: “Participating in surveys like PIPA’s isn’t just about sharing your story; it’s a chance to influence policy and create real change for investors.”

    Cate Bakos’s gold nugget: “This ecosystem thrives when both tenants and landlords feel supported—let’s aim for balance, not division.”

    Show notes: https://www.propertytrio.com.au/2024/12/02/is-investing-in-property-still-worth-it/
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    40 mins
  • #285: First-Time Property Investors and Family Planning - A Smart Approach to Wealth-Building

    #285: First-Time Property Investors and Family Planning - A Smart Approach to Wealth-Building
    Nov 25 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Today the Trio roll up their sleeves and tackle first-time property investors and family planning. A special callout to our lovely listeners, "Sheree" and "Chloe" (not their real names), for prompting this insightful episode.

    Why do first-time investors often consider helping their children onto the property ladder? Cate and Mike discuss Sheree's situation, where family planning meets wealth-building.

    Cate highlights the unique challenges and strategies for investing with a long-term goal of aiding children, even when they're still in primary school.

    Cate dives into key considerations such as the structure of the investment, future financial implications and the need for expert advice. Whether it's about protecting the asset, tax-effective planning or ensuring the investment is a gift and not a burden, the duo unpacks what parents need to know before buying property for their kids.

    Mike emphasises the importance of planning for retirement first before taking steps to support children.

    They explore how defined benefit super funds like Sheree's provide a foundation of financial security and why this can influence property investment decisions.

    Chloe’s question focuses on planning her first property investment. She impresses the team with her detailed groundwork—budgeting, borrowing and cash flow planning.

    Cate underscores the importance of clarity around long-term goals: Is it about building a multi-property portfolio or securing a single growth asset? This distinction guides every next step.

    The team debates whether to go for national versus local expertise when selecting a property, with Cate advocating for local buyer's agents who deeply understand their markets. She also highlights the risks of analysis paralysis and the elusive "perfect property." Instead, they encourage focusing on sound fundamentals and a strategy aligned with future aspirations.

    ..... and our gold nuggets!

    Mike Mortlock's gold nugget: "The more work you do on your strategy, the fewer options—and more clarity—you'll have for making the right decision."
    Cate Bakos's gold nugget: "When you're helping your kids, always ask: Is it a gift or a burden?"

    Show notes: https://www.propertytrio.com.au/2024/11/25/first-time-property-investors-family-planning/
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    41 mins
  • #284: Market Update Oct 24 – Sentiment Waxes & Wanes but for Which States? Melbourne Yields Make History! Mid-size Capitals Slow

    #284: Market Update Oct 24 – Sentiment Waxes & Wanes but for Which States? Melbourne Yields Make History! Mid-size Capitals Slow
    Nov 18 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Cate kicks off this episode with Dave while Mike hikes around New Zealand. The Duo note some of the interesting indices for the state of the nation in the month of October. They marvel at Hobart's quick pivot and wonder what has driven the positive growth. The combined regions outperformed the combined capitals too, and despite the strong monthly performance in Perth, they note that growth has slowed of late.

    Dave and Cate delve into reluctant-seller psychology. After the high's of 2021 for the eastern states, and observing Perth's stellar run over the past couple of years, it's interesting to consider what behaviours are exhibited when locations experience downturns following a strong run.

    Dave notes that consumer sentiment data is suggesting many have a keen eye on Melbourne, and Cate shares some observations about the regional performance in Victoria.

    Segmenting the market into price quartiles tells quite a story. Cate and Dave use some examples in the market and they canvas the reasons why the various price points have performed so differently to each other.

    Rents remain steady, and aside from Hobart, the pace of growth has slowed. However, vacancy rates remain very tight and yields have strengthened. Dave points out that this combination of data is a leading indicator for value growth.

    Perth's downward trajectory over the past few months is quite obvious, but what could be driving Hobart's rent? Could it be an increase in short-stay dwellings? Has domestic travel to the Apple Isle increased? Or could it be related to the weather? The Duo mull it over...

    The correlation between capital growth and listing activity is one of the Trio's favourite discussion points each month. Although Dave makes an important point. "One of the issues with a five year average is that it doesn't factor in population growth." What's driving listing activity around the nation? Tune in to find out....

    New listing activity has pivoted and Melbourne, Hobart and Canberra listing activity has dropped compared to this time, last year. On the flip-side, Perth and Darwin are exhibiting higher numbers of new listings.

    The consumer sentiment index shows a marked increase in the "Time to Buy a Dwelling) measure, and Dave breaks down the data by state. Victoria's measure is now over 100, a 31.5% increase, while Western Australia's measure dropped to 66. Dave points out the potential price signals in combination with listing activity.

    Investors are moving back in to the market at a higher rate and lending has remained steady accross the board. Victoria has underperformed on the investment lending front, unsurprisingly. NSW leads the chase with 44% of new loans secured in September.

    Monthly change of employed people jumped 44,000; a figure that eclipses what many would have expected. Our unemployment rate remains steady despite fears of job-losses as coined by the RBA.

    And... time for our gold nuggets...

    Cate Bakos's gold nugget: The new listing activity for 2024 campaigns is easing and there is only realistically another fortnight to run before campaigns finish and the market goes into hibernation over the Christmas period. For any buyers who wanted to purchase in 2024, now is the time! Get out there!

    David Johnston's gold nugget: Make your own decisions based on your own personal economy!

    Shownotes: https://www.propertytrio.com.au/2024/11/15/ep-284-oct-market-update/
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    45 mins