Property 101: Your Guide to Mastering Property Basics

Ever heard of the curse of knowledge? It's when experts forget
that not everyone knows what they do. As seasoned buyer’s agents
with over 45 years of combined experience, we sometimes assume
that our listeners know as much as we do. And we forget that
terms like LMI, equity, capital growth, and rentvesting can be
really confusing for those new to property.


Today’s episode was sparked by a conversation with a good friend
who recently watched a property seminar online. Despite our long
friendship and frequent property discussions, he says he wished
he'd learned about the fundamentals of property and leverage
earlier, which made me realise that I often take for granted the
fact that not everyone shares my base level of knowledge when it
comes to property.


So we're correcting that by starting from scratch. Tune in as we
cover the essential concepts of property without diving into the
buying process, breaking down the foundational elements of
property in a simple and accessible way. This episode is perfect
for anyone — first home buyers, school-age kids, or just about
anyone who’s curious about property basics. Let’s dive in!


Episode Highlights:


00:00 - Introduction


03:35 - You can live in a house that you own or a house that
someone else owns


04:16 - You can buy a property to live in or an investment
property that someone else lives in


05:07 - You can borrow money to buy a property


06:17 - When you borrow money, the lender uses the property as
security


07:23 - Lenders will not lend the full purchase price of the
property


08:21 - There are other costs that you have to pay for (stamp
duty, legal fees, etc.)


10:59 - The difference between what the property is worth and the
amount you owe the lender is called the equity


11:49 - Each lender has their own policies about who they’ll lend
to and how much they will lend


13:16 - Each lender has different policies about how much they’ll
lend for different types of properties


14:58 - There is no set price for a property


15:58 - Your choice of property purchase has the biggest impact
on whether the value increases/decreases


16:39 - How compound growth applies to property


19:32 - A property’s value can go up and then down


20:27 - If the value goes up, it’s called capital growth – if the
value goes down, it’s negative growth


20:58 - Equity is calculated as the difference between the
current value of a property and the remaining loan balance owed
to the lender


21:44 - If the value goes down and you owe the lender more than
the property is worth, it's called negative equity


22:45 - You can use the equity in your property to borrow more
money to purchase another property


24:39 - Some people buy and sell in less than five years


26:18 - Long term, people can use property as a way to build
wealth


Resources mentioned in this episode:


Your First Home Buyer Guide Podcast Episode 141: Why Lender’s
Mortgage Insurance Isn’t Always a Bad Choice
https://homebuyeracademy.com.au/podcasts/141



Resources:



FREE MINI COURSE: How to price property like a
professional https://www.homebuyeracademy.com.au/freecourse

Meet our recommended mortgage brokers at Home Buyer Academy
https://homebuyeracademy.com.au/brokers

Visit our website https://www.homebuyeracademy.com.au/

Join our Facebook Group to get access to free monthly live
Q&A sessions


https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia

Learn how to buy property without making a mistake with our
ultimate 10-step online course for first time home buyers
https://homebuyeracademy.com.au/YFHBG

If you have any questions or would like to be featured on our
show, contact us at: Your First Home Buyer Guide Podcast
support@homebuyeracademy.com.au

Looking for a Sydney Buyers Agent?
https://www.gooddeeds.com.au

Work with Veronica: https://www.veronicamorgan.com.au

Looking for a Brisbane Buyers Agent?
https://www.propertypursuit.com.au/

Work with Meighan: https://www.linkedin.com/in/meighanwells/



If you enjoyed today’s podcast, don’t forget to subscribe, rate,
and share the show! There’s more to come, so we hope to have you
along with us on this journey!


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