Brick to the Future: Property Investment Show

In this episode, Cam McLellan joins Canna and Michael on the "How Do They Afford That?" Podcast.

The discussion delves into one of Australia's top 10 lenders, Bank of Mum and Dad, exploring the strategies and stigma. With property prices soaring, the amount needed for a deposit has climbed too. And that's left many people with no option but to turn to the Bank of Mum & Dad. Parental assistance to get into the property market has grown, and yet there's a stigma around it - a stigma that doesn't exist for inheritances.

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Cam McLellan chats with his colleague, Matt Lewison, about the number one question people ask: 'How Much Is Enough?'

Cam discusses his method of calculating how much is needed for retirement, working backwards from where someone would be without an investment plan.

Cam's initial goal of $100k annually in passive income was not achievable using super.

Matt stresses the importance of revisiting and adjusting goals along the way. OpenCorp can provide a goal sheet for those who need some assistance with this step!

They both agree, that its the reason for investing that is really the important things:

• Holidays
• Deposits for kids own houses
• Freedom from 'bad debt'
• Turning assets into an income

Matt mentions the problem of expenses increasing to match the upswing of income.

There are three phases to the investment journey:

• Acquisitions phase - Buying as many properties as you can hold while you are able to have strong earnings
• Holding phase - let the assets increase in value but do not let the debt go up. Clear your principle place of residence debt as possible
• End phase - use your portfolio to provide income

The pair finish by discussing the upcoming OpenCorp client portal and the data clarity it will provide to clients.

If you enjoyed this episode of BRICK TO THE FUTURE, why not subscribe via your podcast app of choice and never miss an episode!

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The Reality of the Bank of Mum and Dad in Today's Market

Description: In this episode, we dive into the growing trend of parents helping their children enter the property market, often referred to as the "Bank of Mum and Dad." Cam McLellan discusses the challenges young Australians face in saving for a deposit and how parents can creatively and responsibly assist their children. This episode offers practical advice for families looking to navigate the complexities of modern property investment.

Highlights:

• Introduction to the Bank of Mum and Dad: Cam McLellan addresses the common perception of young Australians relying on parental assistance to enter the property market, comparing today's challenges with those faced by previous generations.
• Economic Realities of 2024 vs. 1980: A look at the stark contrast between the property market and average incomes in the 1980s compared to today, highlighting why it's significantly harder for young people to save for a deposit.
• Strategies for Helping Kids Enter the Market: Discussion on various ways parents can assist their children, including the use of equity gifts, going guarantor, and joint ventures. These methods can help mitigate risks and responsibilities for both parties.
• Case Study: Pascal and Family: A real-life example of how one family used an equity release to help their child enter the property market. This segment provides insights into the process, benefits, and long-term goals of property investment.
• Practical Tips for Parents: Advice for parents considering helping their kids, emphasizing the importance of responsible financial planning and ensuring that children are involved in the process, including saving and understanding the financial commitments.
• Key Takeaways: Reflecting on the importance of starting early and thinking creatively to navigate the current property market challenges.

Resources Mentioned:

• Download Cam's Book "My Four Year Old The Property Investor"

Listener Feedback:

• We love hearing from you! Share your thoughts on this episode and suggestions for future topics by leaving a review or contacting us directly through our website.

Sponsor:

• This episode is brought to you by OpenCorp. Helping everyday Australians achieve financial independence through smart property investment. Visit OpenCorp to learn more.

Thanks for tuning in! If you found this episode valuable, please share it with your friends and family. Stay tuned for more insights on making smart property investments and achieving financial independence.

Enjoy the episode and happy investing!

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Introduction:
Welcome to our latest episode where we dive deep into the world of rental properties with Jeremy Bishop, the General Manager of OpenCorp Property Management. Join us as we explore crucial aspects of the rental market, including the often-discussed topic of rental yield, how to calculate it, and it's significance for investors.

Show Highlights:

• Introduction to Jeremy Bishop: First-time guest Jeremy Bishop shares his insights on the rental market and the concept of rental yield.
• What is Rental Yield? Jeremy explains rental yield, its importance, and a simple formula to calculate it.
• Why Rental Yield Matters: Discussion on why investors are keenly interested in rental yield and how it aids in comparing investment opportunities.
• Tax Benefits and Investment Strategy: Insights into how tax benefits can influence investment returns and strategies.
• Tenant Appeal and Property Features: What tenants are currently looking for in rental properties, with a focus on the Perth market.
• Investing in Value-Adding Features: The importance of air conditioning, solar panels, and other features that increase tenant appeal and rental income.
• Advice for Landlords: Top three tips for landlords to maximise rental appeal and achieve better rent.
• The Role of a Property Manager: The critical importance of having an expert Property Manager in your investment team.
• Closing Thoughts and Rent Increase Strategies: Jeremy and the host discuss strategies for rent increases in a tight market.

Key Takeaways:

• Rental yield is a critical metric for assessing the financial performance of rental properties.
• Investors should consider all cash flows, including tax benefits, to understand the true cost and returns of their investments.
• Presenting properties well and investing in features that appeal to tenants can significantly impact rental income and tenant retention.
• Expert property management is essential for navigating legal compliance, tenant selection, and maximizing investment returns.

Thank You to Our Guest:
A big thank you to Jeremy Bishop for sharing his expertise and insights on the rental property market. His advice is invaluable for anyone looking to invest in rental properties or improve their current investment strategy.

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Hosts:

• Cam McLellan, CEO of OpenCorp
• Michael Beresford, Director of Investment Services

Episode Overview:
In this episode, Cam McLellan and Michael Beresford tackle the buzzword "hotspots" in the property market. They uncover what really makes an area a hotspot and discuss the reliability of hotspots for long-term property growth. The conversation offers a deep dive into why chasing hotspots might not be the best strategy for smart investors.

Key Points Discussed:

1. Definition of Hotspots:
   • Areas that have seen rapid growth, often due to media hype or vested interests.
   • Created by high demand and reduced supply, leading to rapid price increases.
   • Developers may manipulate the market by drip feeding land to keep pressure on supply.
2. Reliability of Hotspots:
   • Buying in a hotspot often means paying an inflated price.
   • Smart investors aim to buy for value, not hype.
3. Countercyclical Investing:
   • Investing in areas before they become hotspots to maximise growth potential.
   • Clients of OpenCorp have enjoyed $254K+ more than the average property investment property thanks to our property selections.
4. Market Cycles:
   • Property markets typically have cycles of growth, correction, and stagnation.
   • Investors often buy at the top of the market due to confidence built from previous growth, only to face corrections and stagnation.
5. Smart Investment Strategies:
   • Avoid emotional decisions and hotspots driven by hype.
   • Use a proven, research-based process to identify growth corridors with planned infrastructure and limited land supply.
6. Importance of Expert Guidance:
   • Having a coach or mentor to guide through the investment process.
   • Formulating clear goals and strategies to achieve long-term financial success.

Summary:

• Hotspots: Often overhyped and can lead to buying at inflated prices.
• Smart Investing: Focus on areas with planned infrastructure and limited supply before they become hotspots.
• Expert Guidance: Seek mentors like OpenCorp to navigate the property market strategically.

Additional Resources:

• For a comprehensive guide on property investment and choosing the right mentor, get a copy of "My Four-Year-Old the Property Investor" by Cam McLellan. Get your copy here: https://opencorp.com.au/books/my-four-year-old-the-property-investor/

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