Clothing pack and homelessness

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about this clothing pack and homelessness.

To most it’s just a clothing pack with some staple clothes in it.

Like jumper, track pants, socks, knickers etc….

To me it represents something really important.

It’s my commitment to try and raise awareness about homelessness in Australia.

From what I’ve learnt so far, there isn’t a simple solution to fix homelessness.

It’s such a big topic.

Over 116,000 people homeless during the census in 2016.

The issue with Homelessness, is there is no single cause.

Often associated with personal trouble, sometimes medical, substance abuse etc…

Sometimes it’s just not enough money to be able to afford housing.

Ages can vary from young teenagers to the elderly.

Statistics show the hardest hit groups are often the young and elderly.

Experts such as Professor Muir of UNSW talk about the need for “more low-income rental housing and affordable housing”.

There are various schemes such as NRAS (national rental affordability scheme), Commonwealth Rent Assistance, Housing Affordability Fund etc…

It’s great that there’s these schemes, but they don’t seem to be ending homelessness.

Merely trying their best to try and contain the issue the best they can.

Surely there must be a way to make a change.

Recent figures released by UNSW state 1 in 200 Australian’s are homeless on any given night.

For young people 19-24 the figures rises to 1 in 100.

So if you were in school in a grade of 100, in theory one of our peers would be homeless.

That’s crazy!

I think the biggest challenge, is it will require effort to make a change.

I often hear we aren’t building enough to support the growing population.

How can we suddenly build enough to help our disadvantaged?”

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How to work out if your property investment is positively geared

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about how to work out if your property investment is positively geared.

In short, the rent you receive covers all the expenses associated with the property.

Expenses include.

Mortgage principal and interest repayments.

Council rates, fixed water rates, strata rates (in a strata complex), land tax.

Property management fees.

Maintenance or renovations of the property.

Once you work out these expenses.

Work out how much rent you receive a year.

By multiplying the weekly rent by 52.

I haven’t included any vacancy for simplicity.

If your rent is greater than all your expenses your property is cash flow positive.

i.e. the property holds itself.

There are other benefits you can claim with the help of a registered accountant.

These usually include depreciation and interest on the investment loan.

I generally find more affordable properties tend to be more cash flow positive.

Or properties which have been added to.

Such as a granny flat, second dwelling or extra bedrooms in an extension.”

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What type of property you should buy as your first purchase

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about what type of property you should buy as your first purchase.

In residential terms, there are a few main options.

The unit/apartment. The villa. The townhouse. The duplex. The land. The house.

Which one is right for your first property?

Something closer to the city such as a unit?

Or something further out with good land size?

It really comes down to your budget and personal choice.

Some decide to buy close to the city due to convenience and lifestyle benefits.

Some rather rent near the city and buy an investment further out or even interstate.

With the view for potentially enhanced growth.

The two most important questions to ask yourself.

Are you wanting to occupy the property?
How much can you afford?

These questions will determine were you can afford and what you will be able to purchase.

Your household size will usually determine the type of property you will require.

From a studio apartment to a large house with a big garden and everything in between.

Most of society would usually love to buy a waterfront Point Piper mansion.

In reality this isn’t realistic for most of society.

Which is totally cool, as you can make your own place great, no matter where it is.

Maybe one day you can afford that waterfront home.

But in the meantime if your just looking to invest, in my opinion, pick the best growth location you can find.

If your living in the property, try not to overcapitalise on the purchase price and renovations.

Which basically means, ideally don’t spend more than what the property will be worth at the end.

The beautiful thing is you can if you want.

It’s your first property!”

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Some ways to determine if a property makes sense or not as an investment

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.


Today we’re going to discuss some ways to determine if a property makes sense or not as an investment.

Sometimes a good quality property investment isn’t fancy.

It’s not glitzy or shiny or particularly pretty.

In fact it might be slightly ugly.

However, there’s nothing wrong with that in my opinion.

All too often I see investors lured by the glitz and the glam of shiny renders and brochures.

Often looking past logic and becoming emotional about the various claims made about the property.

When you feel like your being lured to something new and shiny.

Remember there are median prices in an area, which are a good initial gauge of how the value stacks up.

If the rental estimate seems high.

Maybe check what’s available in the market, it could be over hyped.

If you are trying to buy something for tax relief, remember that point.

Something off the plan in many instances will take over 2 years to finish.

Also don’t base your decisions on best case scenario.

A medium case is a much better choice.

The good thing about facts and figures is they are black and white.

It’s hard to become emotional about them.

Often times it’s the price you pay where the investment becomes good or average.

Remember this point as the glitz can sometimes cloud your judgement.”

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The pros and cons of houses versus villas/townhouses/units

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today were going to talk about the pros and cons of houses versus villas/townhouses/units.

A Torrens Title freestanding house means you own the land and property.

Strata Title means you own a part of the combined strata.

There are some differences between both ownership methods.

Having a freestanding house means you can virtually do what you want with the look of your exterior.

In a strata complex this wouldn’t be possible, as you would need approval as this would be common property.

You can generally extend and knockdown rebuild with a house.

With a strata property you are typically confined to renovating the internal spaces.

Houses tend to be slightly more secluded.

Strata complex’s tend to be more dense and closer to your neighbours.

Houses tend to be more expensive than a strata property.

This means you will usually be able to purchase a strata property closer to the city.

The house would usually be further out.

Historically houses have appreciated more.

Strata properties, typically units have historically tended to yield slightly better.

There is a trend however towards more dense/built up living.

Some people don’t like houses due to maintenance and upkeep.

Some like strata properties because this is usually looked after by the strata.

You tend to pay strata rates which many don’t like.

With a house you don’t have any strata rates.

Strata properties can be in more prime locations particularly units.

Meaning nearer to shops and transport in many instances.

Houses seem to be more commonly associated with families.

However, in my opinion society is becoming more open to strata living.

At the end of the day it comes down to affordability.

If you really need to live in a certain area.

But can’t afford the houses, there’s nothing wrong with villas, townhouses or units.”

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