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
  • #282: The Ultimate Guide to Property Depreciation - Maximise Your Investment Returns with Expert Advice on Tax Deductions

    #282: The Ultimate Guide to Property Depreciation - Maximise Your Investment Returns with Expert Advice on Tax Deductions
    Nov 4 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM


    Today's episode is all about depreciation; Mike's wheelhouse! Dave opens the conversation with a question for Mike, "How often should I update or review my depreciation schedule to maximise my tax benefits?" Reports last an owner as long as they hold the property. Mike delves into the role of the quantity surveyor when it comes to estimating construction costs.

    One of Cate's investing mistakes gets aired; after having completed a significant renovation on an investment property, Cate overlooked the chance to arrange a depreciation schedule at the onset. Mike unlocks the magnitude of unclaimed deductions in our nation.

    How easy is it to arrange a depreciation schedule, and what documentation is required? And how do self managed superannuation fund property assets differ when it comes to deprecation?

    Mike explains the challenges of high depreciation versus high capital growth. He is often asked the question by investors, and his Southbank high-rise, one bedroom apartment example illustrates the inverse relationship between the two measures.

    If a property is over forty years old, is there any point looking at arranging a depreciation report? Tune in to hear the answer!

    Mike explains the importance of physical inspections when a tax depreciation specialist is formulating the depreciation schedule, and he also sheds light on the circumstances that allow for a physical inspection not to be conducted. Mike's service station story is a warning to investors who engage professionals who cut corners.

    What is the difference between a repair you claim through your accountant and a depreciable item on your schedule? Mike shares the nuts and bolts for our listeners.

    ..... and our gold nuggets!

    Cate Bakos's gold nugget: Well-meaning advice from accountants to maximise tax deductions isn't always great property advice. If in doubt, get a second opinion.

    Mike Mortlock's gold nugget: Don't assume that it's not worth getting a depreciation schedule. Always check!

    Show Notes: https://www.propertytrio.com.au/2024/11/04/depreciation/
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    43 mins
  • #281: Mastering Accessing Equity - Loan to Value Ratio Strategy, Risks, Benefits & Hidden Opportunities that Shape Mortgage Strategy

    #281: Mastering Accessing Equity - Loan to Value Ratio Strategy, Risks, Benefits & Hidden Opportunities that Shape Mortgage Strategy
    Oct 28 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Today's episode is all about loan to value ratio's (LVR). Mike throws Dave the first question;
    "In twenty words or less, what is LVR?"

    Cate delves into the reasons why LVR is so important when it comes to Mortgage Insurance. Managing risk is what lenders do, but once a buyer triggers mortgage insurance, dwelling types, quirks and risks count for a lot. Heightened scrutiny and having the final say on loan approval is something that a mortgage insurer often holds. Cate also explores those professionals who get exemptions when it comes to LVR and mortgage insurance waivers. Dave's examples bring this point to life; from postcode restrictions to zoning types to the property condition. Policies vary greatly among lenders and it can be quite complex. Cate also shares some of her experiences and insights in relation to tricky properties that sometimes pack a nasty lending surprise. Strategic mortgage brokers can assist with the associated challenges.

    Dave shares the history of LVR and Lenders Mortgage Insurance in Australia with the listeners... a step down memory lane for some, but a significant step for home ownership in Australia.
    Cate reminisces about the impact of smaller deposits and the burden of Lender's Mortgage Insurance. Is it a cost of doing business? Absolutely, but it's tough on first home buyers. Cate's support of the First Home Guarantee is strong, but she feels our Government need to offer more places to eligible applicants. And the 2% savings guarantee for eligible single parents is one policy she loves.
    LVR can be a great metric to track our prudential regulator’s level of concern. Macro-prudential policy intervention is evident when we look through the history books at high LVR loan origination. But what does the current five-year data show us? Tune in to find out.

    We talk a lot about macro-prudential regulation and how it affected credit, particularly for investors during the 2014 – 2019 period. APRA intervened, and before we knew it, lending became tough, despite reasonable interest rates. Credit was almost impossible for investors. Dave talks our listeners through the challenges of this period and the impact that our regulator had on the property market.
    LVR is a viable measure of health that a lot of investors and businesses use. Cate talks us through the concept of overall LVR, and how it can be reduced/optimised.

    Lastly, Cate and Dave touch on cross-securitisation... the good, the bad, the ugly.

    ..... and our gold nuggets!

    Cate Bakos's gold nugget: Buyers must manage risk when they are in high LVR territory when they are making unconditional offers.

    Dave Johnston's gold nugget: "LMI is the cost of doing business, as Peter Koulizos has told us." Dave talks about the benefit of being open minded to a higher LVR and LMI in order to get into the market earlier.

    Mike Mortlock's gold nugget: Mike talks about the potential cost of avoiding LMI, and he reminds listeners that these costs can be modelled.

    Show Notes: https://www.propertytrio.com.au/2024/10/28/mastering-accessing-equity/
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    45 mins
  • #280: The Impact of Infrastructure on Property Values & Choosing Between Melbourne and Brisbane for Your Next Investment

    #280: The Impact of Infrastructure on Property Values & Choosing Between Melbourne and Brisbane for Your Next Investment
    Oct 21 2024
    Got a question for the trio? https://forms.zohopublic.com/propertyplanningaustralia/form/GotaquestionforthePropertyTrio/formperma/zYCQAxzE_24CVlDafP1ozyzwtmB-8m1iCNtCTgDvHXM

    Marilyn's question is about the suburban rail loop civil works in Melbourne, and how this could influence the suburbs and property markets that are impacted by the project. Dave sheds light on the shortfalls of Melbourne's current rail lines, and the future changes that the project will enable.

    "It is the most expensive infrastructure project in Australian history".

    Mike ponders how the new stations and hubs could impact different genres of properties and he dares to step into town planning initiatives. Dave asks the obvious question; how will higher density, (and more inhabitants) impact businesses and heightened demand for services? How could this impact property prices in the 1.6km radius within these affected stations? Cate points out that this insight is transferrable amongst several other cities that have invested in their rail infrastructure.

    Cate and Mike discuss the positives of a commutable location with easy transport hubs. Will buyers pay more for an easy commute to work? Absolutely. What are the likely impacts of higher density hubs in designated locations?

    The Trio consider the impact across the nation for various planning changes for high-amenity areas. And Cate raises the question: what do these new stations mean for the various precincts that are impacted?

    Melbourne has four new train stations hitting the map in 2025 and there will be plenty of positives.

    Hunter asks the Trio where they'd invest if they had $500,000 or $1,000,000 in either Melbourne or Brisbane. Cate ponders why Melb vs Brisbane is a popular consideration. Recency-bias from the Olympics, or weather differential are two considerations, but could it be price-points? Or the media? Is Melbourne's potential bounce back a factor? Dave lays done some really important property planning considerations, and Hunter's scenario is put under the microscope.

    The Trio unpack some of the complexity that should be considered, and Cate shares some specific Victorian examples at these two price points.

    Mike unpacks locations around the country where listings have increased at the highest rate. What are they? And why have the listings exploded? Tune in to find out....

    ..... and our gold nuggets!

    Mike Mortlock's gold nugget: The strategy is more important than the hotspot!

    Cate Bakos's gold nugget: Rail amenity counts for a lot. What are our town planners thinking, and how is rail infrastructure playing a key role in our growing population threat to traffic congestion?

    Show Notes: https://www.propertytrio.com.au/2024/10/21/listener-questions-rail-projects-and-melb-vs-brisbane/
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    58 mins

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