{"id":5485,"date":"2015-08-27T01:00:31","date_gmt":"2015-08-26T15:00:31","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=5485"},"modified":"2015-08-27T01:00:31","modified_gmt":"2015-08-26T15:00:31","slug":"what-holds-most-people-back-from-getting-their-next-property","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/what-holds-most-people-back-from-getting-their-next-property\/","title":{"rendered":"What holds most people back from getting their next property? – Michael Beresford"},"content":{"rendered":"

 
\nIn today’s show we talk with\u00a0Michael Beresford<\/strong>, the Senior Investment Consultant and Executive Director at Open Wealth Creation, a part of Open Corporation. Michael\u00a0has been helping people build property portfolios for many years and he talks about how a lack of a finance strategy has held many investors back.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin:<\/b>\u00a0 My next guest is Michael Beresford. Michael is the Senior Investment Consultant and Executive Director at Open Wealth Creation, a part of Open Corporation. They\u2019ve been helping people build property portfolios for decades \u2013 $4 billion worth, in fact, and over 7000 properties in their portfolios.
\nMichael has personally guided his clients in acquiring over $100 million worth of investment property using the same strategies that he has used to develop his own portfolio.
\nHi, Michael. Thanks for your time.
\nMichael:<\/b>\u00a0 No worries at all, Kevin. It\u2019s good to talk to you.
\nKevin:<\/b>\u00a0 In your experience that I mentioned about how many people you\u2019ve helped, you must have seen a few lessons along the way?
\nMichael:<\/b>\u00a0 Lots of them. What we teach our clients is what we\u2019ve done ourselves, so unfortunately, most of the mistakes have been made by us to start with.
\nKevin:<\/b>\u00a0 I suppose we\u2019re all in that boat, that\u2019s for sure. Can you just answer one question for me: what do you think it is that holds most people back from getting their second or even third property?
\nMichael:<\/b>\u00a0 I\u2019d have to put that down to two key things, Kevin. The first is an understanding of why a plan and a strategy to be able to get more than one property is important. But assuming that you have that motivation and that clarity, by far the key point would be not having finance set up in the right way.
\nWhat I mean by that is having a set up where you typically go back to the bank you feel you have a relationship with, but that results in having too many eggs in the one basket. The bank has all of the control, and it doesn\u2019t allow you the flexibility to be able to pull the equity out when you want it and need it to be able to get the next property and so on.
\nKevin:<\/b>\u00a0 You\u2019re talking there about cross-collateralization?
\nMichael:<\/b>\u00a0 Yes, it\u2019s a hard one to say, isn\u2019t it? That\u2019s exactly right.
\nKevin:<\/b>\u00a0 Is that the biggest mistake you think people make with their finance?
\nMichael:<\/b>\u00a0 By far, yes. It just comes down to control, because if the bank has the control, then they can be overly conservative on valuations, they can restrict LVRs, and they\u2019ll try to get you into a fixed interest rate that\u2019s very expensive to break. All of those scenarios basically end up with the bank holding all of the cards and not giving you any flexibility to control that process.
\nKevin:<\/b>\u00a0 One of the most common questions that I\u2019m asked is: who should I take advice from?
\nHow do you know when you\u2019re dealing with a good property advisor?
\nMichael:<\/b>\u00a0 If I use my own experience, like anything in life, I take advice from people that are doing it themselves. Then it\u2019s not second-hand information, it\u2019s not theory; it\u2019s actual experience. The best way to be able to avoid mistakes you might encounter is to learn from people who have made them already.
\nKevin:<\/b>\u00a0 Just getting back to finance for a moment, finance can be daunting. If someone is struggling with that, where do you think they should start?
\nMichael:<\/b>\u00a0 That\u2019s a great question. The first step that anyone needs to take is to actually understand their position. The calculators the banks use are forever changing, so what might have been the situation three or four months ago might be very different compared with today. So always understand your borrowing capacity as the first step. Unless you can actually understand what you can borrow, there\u2019s no point in looking at properties or starting to implement a strategy if you don\u2019t know what you can get from the bank to start with.
\nKevin:<\/b>\u00a0 How important do you think it is for people to monitor interest rates?
\nMichael:<\/b> Definitely important, because the lower the interest rate, typically the more it helps your borrowing capacity. It\u2019s very important from that perspective. But the banks love to market their products based on a low rate, and one of the big key things to avoid is focusing too much on interest rates.
\nI\u2019m not saying you want to have an expensive loan product \u2013 it needs to be within reason \u2013 but ensuring that you\u2019re taking a structural focus \u2013 i.e. having different properties with different banks and avoiding cross-collateralization \u2013 is going to be far more effective in the big picture of your portfolio than saving 0.1% or 0.2% here and there.
\nKevin:<\/b>\u00a0 Good advice. Michael, I want to thank you for your time. Thank you for being with us, and I look forward to talking to you again soon.
\nMichael:<\/b>\u00a0 You\u2019re welcome, Kevin. Thanks for having me.<\/p>\n","protected":false},"excerpt":{"rendered":"

  In today’s show we talk with\u00a0Michael Beresford, the Senior Investment Consultant and Executive Director at Open Wealth Creation, a part of Open Corporation. Michael\u00a0has been helping people build property portfolios for many years and he talks about how a lack of a finance strategy…<\/p>\n","protected":false},"author":176692471,"featured_media":4176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,13,25],"tags":[101],"class_list":["post-5485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"\nWhat holds most people back from getting their next property? - Michael Beresford - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/what-holds-most-people-back-from-getting-their-next-property\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What holds most people back from getting their next property? - Michael Beresford - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  In today’s show we talk with\u00a0Michael Beresford, the Senior Investment Consultant and Executive Director at Open Wealth Creation, a part of Open Corporation. Michael\u00a0has been helping people build property portfolios for many years and he talks about how a lack of a finance strategy...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/what-holds-most-people-back-from-getting-their-next-property\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-08-26T15:00:31+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"What holds most people back from getting their next property? – Michael Beresford\",\"datePublished\":\"2015-08-26T15:00:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/\"},\"wordCount\":871,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Latest Stories\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/\",\"name\":\"What holds most people back from getting their next property? - Michael Beresford - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-08-26T15:00:31+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/what-holds-most-people-back-from-getting-their-next-property\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What holds most people back from getting their next property? – Michael Beresford\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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