_{1.00 – Mike kicks off the episode, introducing the focus on first-time property investors and family planning.}

_{1.46 – Sheree’s question: Helping her primary-school-aged son get onto the property ladder. Mike and Cate dive into the complexities of early family financial planning.}

_{3.25 – What is a defined benefit super fund? Cate explains how this unique setup impacts Sheree’s investment strategy.}

_{7.51 – Is it too early to plan property investments for children in primary school?}

_{10.21 – Structuring a property purchase for children: Trusts, transfers, and protection strategies parents need to consider.}

_{13.02 – The importance of holding costs and cash flow: What to keep in mind when planning a gift property for children.}

_{16.19 – Cate and Mike recap Sheree’s options}

_{17.16 – Chloe’s question: A first-time investor’s journey. Cate and Mike explore her detailed groundwork and the importance of strategy.}

_{19.55 – Should your first investment be a growth asset?}

_{22.59 – The pitfalls of seeking the “perfect property.”}

_{27.09 – National vs. local buyer’s agents: What investors should know before choosing expertise.}

_{31.24 – Gold Nuggets}

Today the Trio roll up their sleeves and tackle first-time property investors and family planning. A special callout to our lovely listeners, “Sheree” and “Chloe” (not their real names), for prompting this insightful episode.

Why do first-time investors often consider helping their children onto the property ladder? Cate and Mike discuss Sheree’s situation, where family planning meets wealth-building.

Cate highlights the unique challenges and strategies for investing with a long-term goal of aiding children, even when they’re still in primary school.

Cate dives into key considerations such as the structure of the investment, future financial implications and the need for expert advice. Whether it’s about protecting the asset, tax-effective planning or ensuring the investment is a gift and not a burden, the duo unpacks what parents need to know before buying property for their kids.

Mike emphasises the importance of planning for retirement first before taking steps to support children.

They explore how defined benefit super funds like Sheree’s provide a foundation of financial security and why this can influence property investment decisions.

Chloe’s question focuses on planning her first property investment. She impresses the team with her detailed groundwork—budgeting, borrowing and cash flow planning.

Cate underscores the importance of clarity around long-term goals: Is it about building a multi-property portfolio or securing a single growth asset? This distinction guides every next step.

The team debates whether to go for national versus local expertise when selecting a property, with Cate advocating for local buyer’s agents who deeply understand their markets. She also highlights the risks of analysis paralysis and the elusive “perfect property.”

Instead, they encourage focusing on sound fundamentals and a strategy aligned with future aspirations.

Key insights from the episode:

• For parents: Consider how to structure a property purchase for children effectively, taking into account their age, cash flow, and future transfer costs.
• For first-time investors: Define your “why” before selecting the “where.” A growth asset can be a strong launchpad for building a portfolio but requires thoughtful planning.
• Expert advice matters: Work with mortgage brokers, accountants, and strategists who understand your unique goals to create a roadmap that minimizes risks and maximizes returns.
• Trust local expertise: Boots on the ground often outperform distant analysis when it comes to selecting the right street, property, or growth drivers.

.…. and our gold nuggets!

Mike Mortlock’s gold nugget: “The more work you do on your strategy, the fewer options—and more clarity—you’ll have for making the right decision.”

Cate Bakos’s gold nugget: “When you’re helping your kids, always ask: Is it a gift or a burden?”

Resources:

If you’ve enjoyed this show, you may enjoy these episodes:

14 – How to choose a location for investment – what to look for and what to avoid

21 – Why price point should determine location and strategy

32 – Misunderstanding what makes a good property investment – No.2 of the top 7 Critical Mistakes

95 – Security guarantees, co-borrowing, gifts and more – Helping your kids buy their first property

263 – Strategies for Early Homeownership, Passing on Money Management Wisdom and Teaching Financial Independence