_{2.32 – Cheerio from Mike, and Cate then leads into Jim’s scenario}

_{4.22 – Cate bounces the first dilemma to Dave}

_{9.05 – Dave and Cate tackle the importance of having both partners on the same page, particularly in relation to Jim’s rent-vesting suggestion.}

_{14.37 – Cate shares a past personal experience about the challenges of rent-vesting}

_{17.42 – Jim asks, “Should we purchase a B grade property in an A grade suburb, or an A grade property in a B grade suburb?”}

_{22.45 – Teaser for next week’s episode… the February market update}

_{50.31 – Gold Nuggets}

Dave and Cate man the fort this week while Mike does his charity ride… and the duo decided to tackle a great listener question about lending policy, loan structuring and the critical decisions that arise for many.

Jim and his partner have a very important scenario to run past the Trio. They are particularly high income earners with $500,000+ combined incomes, but there are some critical messages here that apply to all home owners and investors. The challenges they face have been exacerbated by increased interest rates, but they also have had second thoughts about the home that they selected in 2019.

The dilemmas are very real… how do Cate and Dave address them?

Our listeners chose to buy a house that had less appeal than some of the others that they were missing out on in the lofty hot market of Sydney. Why do people go for the lower hanging fruit? And what are the risks? Dave and Cate share their thoughts, from fatigue to FOMO.

Should they sell and rent-vest, re-purchase in another location, or hold their home?

“They need to nail the big rock in the jar, which is where they’d like to live long-term to raise their kids.” Dave’s ever-pragmatic insights shine through… tune in to hear more.

Cate discusses the importance of partners being on the same page as each other, and this is a fantastic case in point in relation to rent-vesting. Rent-vesting is often a particularly challenging strategy for couples and Cate explains why. She also shares a personal experience dating back to 2008 that derailed hers and Ian’s rent-vesting strategy.

Jim asks, “Should we purchase a B grade property in an A grade suburb, or an A grade property in a B grade suburb?” Dave and Cate don’t necessarily agree, but they each share their answers openly and Cate cites a great recent example.

Dave takes up the challenge to help Jim and his partner with the cashflow challenge. How can they ease the pressure, and what are some of the options?

Dave and Cate enjoy a good banter about investment strategy, and in particular, retirement strategy… and this is what it’s all about!

And lastly, can Jim and his partner achieve $140,000pa passive income? Dave uncovers the answer.

…. and our Gold Nuggets!

Dave Johnston’s gold nugget: “If you do plan to purchase a family home, don’t put off deciding what that looks like. Start planning for it!”

Cate Bakos’s gold nugget: “I wish everyone could afford a property plan. If you can get that right from the start, you can establish things from the ground up”. And when you’re a high income earner, it really does carry some weight.

Mike Mortlock’s gold nugget: Mike talks about the importance of being quite discerning when it comes to buying the family home, and not compromising on the key elements.

Resources:

If you enjoyed this episode, you may also enjoy these:

4          How to develop your own Property Plan – start with the end in mind!

5          The lifestyle vs Investment conundrum

22        Why the family home is often the biggest piece of the investment puzzle

36        Buying the wrong property and/or the wrong location – No. 6 of the top 7 Critical Mistakes

139      Buying your dream home