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
  • #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. I 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

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