Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

The trio enjoy a catch up after Cate's visit to Adelaide and a day out with Pete and the students. Pete sends a special hello to all of our listeners!
Mike's weekly market update circles around the RBA minutes and the monetary policy paragraphs. He notes that "the case for justification is getting stronger" and he highlights the increased risk of inflation returning to the target, hence the interest rate move.

Cate's interlude into off-market transactions may surprise our listeners. "Situational" off-markets can be ideal, but "Opportunistic" off-markets are becoming problematic.

Dave weighs in with his insights also and shares Cate's concerns about buyer's agents who purport to transact a heavy weighting of off-market sales.

Our episode entails two great listener questions.

The first is intriguing: Llohyd bought a rundown house in Hillcrest, SA for $550K with $440K debt November 2022. It’s in the process of getting subdivided to build two. His broker has just conducted a CBA desktop valuation and his property has almost $120K equity, and his options are bountiful. He reaches out to the trio examine his options and it's an enthralling conversation. Does he build? Sit tight? Consider other options?

Tune in to find out what the trio discuss. From considerations around build cost to equity positions, long term land banking to selling with plans and permits, all options are on the table.

Our second listener question is always a ripper. Jasmin asks the trio, "If I have a loan for $820K with an LVR or 80%, can I use that to buy two properties worth, and should I consider that option. Or can I only buy 1 property? "

"If I had a dollar for every time I've been asked this question, I'd have a piggy bank full of dollar coins", says Cate.

Cate asks whether our listener is investing for capital growth, or for rental yield. There is no right or wrong answer, in fact it boils down to an investor's personal financial position. Mike supports this view but he also loves the idea of diversification, however he focuses on asset quality and the need for an investor to understand what it is that they are trying to achieve.

Dave sheds light on the risks associated with price point selection, the power of compounding, the perils of procrastination, and the impact on the ability to purchase their family home.

"Make sure you've got the big rock in the jar sorted out", says Dave.

A true key point for Jasmin to consider.

...And our gold nuggets!

Cate Bakos' gold nugget: The winter market can be tough on the southern states, so for people who are contemplating shopping through the winter months, perhaps thinking about gearing up for spring is a good idea. Bear in mind supply and demand during winter months and don't put pressure on yourselves.

Mike Mortlock's gold nugget, (or black opal): Mike ponders the merit of having full context of our listener's long term plan. We can't just tell Lloyhd and Jasmin to opt one way or the other... it all comes down to planning.

Shownotes: https://www.propertytrio.com.au/2023/06/26/listener-questions-june-2023-2/