array(1) { [0]=> &object(stdClass)#6802 (52) { ["id"]=> string(5) "17736" ["title"]=> string(177) "What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins? " ["alias"]=> string(172) "what-omicron-means-for-property-and-are-units-right-for-first-time-buyers-what-is-equity-crowdfunding-are-industry-super-funds-tapping-into-member-funds-to-save-their-skins" ["introtext"]=> string(264) "

In this episode of The nestegg Podcast, host Maja Garaca Djurdjevic checks in with our three experts, digging into the biggest headlines in the world of superannuation, property, investing and wealth creation, as well as touching on the new Omicron scare.

" ["fulltext"]=> string(1128) "

Steve Waters, director of Right Property Group, talks about investing in a unit and whether first-time investors should put their money into a well-located apartment over a house in a regional setting. He touches on new versus old units and what history tells us.

RMIT senior lecturer of finance Dr Angel Zhong covers equity crowdfunding, what it is and how it’s trending. Dr Zhong also talks about legalities as well as risks for retail investors.

Finally, tax and super guru Timothy Munro chats about industry super funds turning to courts to amend their trust deeds and why this needs to stop. Mr Munro also chats about investing your super in crypto and the implications.

Have a question for our experts? Get in touch at [email protected], and you might get featured on the next episode.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2021-11-30 20:20:42" ["created_by"]=> string(4) "2404" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2021-11-30 23:02:01" ["modified_by"]=> string(4) "2404" ["modified_by_name"]=> string(12) "Robyn Tongol" ["publish_up"]=> string(19) "2021-11-30 22:53:46" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(240) "{"image_intro":"images\/podcasts\/230221_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(855) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","send":"0","test":"0","comments":"1","readingDiff":"3","schema_active":"0","schema_name":"","schema_description":"","schema_thumbnailUrl":"","schema_uploadDate":"","schema_duration":"","schema_contentUrl":"","schema_embedUrl":"","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(121) "funds, omicron, means, property, units, time, buyers, equity, crowdfunding, industry, super, tapping, member, save, skins" ["metadesc"]=> string(200) "In this episode of The nestegg Podcast, host Maja Garaca Djurdjevic checks in with our three experts, digging into the biggest headlines in the world of superannuation, property, investing and weal" ["access"]=> string(1) "1" ["hits"]=> string(3) "105" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "1128" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(12) "Robyn Tongol" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#6804 (3) { ["data":protected]=> object(stdClass)#6799 (95) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["menu-meta_description"]=> string(180) "Let us help you decide how you want to invest your money on. Learn the best strategies in investing and options like cryptocurrency, bonds, mutual funds, property and stock market." ["secure"]=> int(0) ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2021-11-30 22:53:46" ["slug"]=> string(178) "17736:what-omicron-means-for-property-and-are-units-right-for-first-time-buyers-what-is-equity-crowdfunding-are-industry-super-funds-tapping-into-member-funds-to-save-their-skins" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(191) "/resources/podcast/what-omicron-means-for-property-and-are-units-right-for-first-time-buyers-what-is-equity-crowdfunding-are-industry-super-funds-tapping-into-member-funds-to-save-their-skins" ["image"]=> string(65) "images/podcasts/230221_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

What Omicron means for property, and are units right for first-time buyers? What...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

The risks and rewards of investment trusts

By Lucy Dean

May 07 2018
Share

Invest

The risks and rewards of investment trusts

By Lucy Dean
May 07 2018

It’s a “good time” for Australians holding debt against commercial property, but there are a few things to be aware of, a commercial property lender has said.

The risks and rewards of investment trusts

By Lucy Dean

May 07 2018
Share

It’s a “good time” for Australians holding debt against commercial property, but there are a few things to be aware of, a commercial property lender has said.

Speaking to Nest Egg to mark the launch of its two investment trusts in australia, Thinktank Group's chief financial officer Andrew Bennett said the current low-rate environment means it’s a good time for investors holding debt against commercial property rather than the physical property itself.

The group is offering a High Yield Trust and an Income Trust, with the former offering secured first mortgage commercial debt and the latter offering secured second mortgage commercial property loans.

Responding to questioning around whether there was a growing interest in commercial property investment, Mr Bennett explained that commercial property in 2017 delivered a yield of 11.9 per cent, with about half of that flowing through from rental yield.

He said the fall in the Reserve Bank of Australia’s (RBA) official interest rate has correlated with a general upswing in commercial properties’ capital value.

“I think what’s occurring is that people are saying, ‘Well interest rates can't keep going down, and in fact if interest rates start going back up, you're going to get back into the [2008-2009 era] capital losses on holding commercial property,” Mr Bennett said.

“So now's a good time to be owning debt against commercial property rather than owning a physical commercial property itself. There's a bit of interest in, or a bit of a realisation that investing in commercial property debt gives you a little bit better yield than residential property debt.”

However, prospective investors should be aware of historical challenges in the space.

Mr Bennett said he hopes the GFC will be no more than a once-in-a-lifetime event. This is because during that period, mortgage trusts like Challenger Howard experienced two things.

“One, when the GFC hit, they were very pregnant with construction and development lines where they'd lent money to a developer to buy some land and built some apartments or stuff like that. We don't do any of that. We don't do any construction or development, that's just too risky for us,” he said.

“The second thing is they [investors] got locked out. The investors couldn't get their money out ... when they wanted them back because everybody wanted their money back at the same time.”

Mr Bennett said this risk of becoming trapped is inherent in investing outside of a bank.

Nevertheless, he argued Thinktank will mitigate this risk by avoiding construction development and focusing on “lots and lots of little loans”.

As an investor, Mr Bennett explained that: “Basically what you're doing is you’re buying interest in a whole lot of loans, so it's a function of what those loans do and what your other co-investors want to do as well. But on the other hand, you can give your money to the bank and you won't have those issues, but by the time you pay tax and you have inflation, you're actually left with no net return to your investment.

“I've got some loan money in these trusts, but if I thought the GFC was coming next year, I probably wouldn't have the money there. But on the other hand, I don't think the GFC is going to happen next year and if I put it in the bank then I'm losing as well. If I’ve got my interest and I pay tax on my interest, then I'm going backwards just having the money sitting in the bank.”

Nest egg readers also ponder on what is trust?

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Property

4 property trends that those looking to buy in 2022 will want to know about

Experts have already got a pretty good idea of what the new year means for the property sector. ...Read more

Property

Super saver scheme changes to benefit FHBs

The federal government’s First Home Super Saver Scheme is due for an upgrade. ...Read more

Property

Australia’s property market bull run may be on its last legs

Experts say that the runaway growth of Australia’s housing market is coming to an end. ...Read more

Property

Property prices are still rising, but growth continues to slow

November marked the 14th consecutive month of rising house prices in Australia. ...Read more

Property

First home buyers need almost 11 years to save for a deposit

Saving for a deposit is taking longer than ever, according to a new report on housing affordability. ...Read more

Property

Will 2023 put an end to the housing boom?

Is the end in sight for Australia’s most recent property boom? ...Read more

Property

Australia’s top 20 suburbs for property investment revealed

NSW has the most investment opportunities, according to ME Bank, but a Brisbane suburb has taken out the top spot. ...Read more

Property

CBA forecasts 10% house price drop for 2023

The Commonwealth Bank is the most negative of the majors on property prices. ...Read more

Listen

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

Listen now

How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness

Listen now

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

Watch now

nestegg Presents: Meet the Manager – Australian Solar Investments

Watch now

How much do you expect to spend at Christmas

Watch now

Is your super really that super?

Watch now

Read

Millennials see boxes being ticked, managers see mental health revolution

Crypto of the Week: Tezos

The Great Resignation may not be what it appears to be

Young Australians facing significant financial difficulties

Financial terms made easy

What Is A Personal Cash Loan - Video

What’s ethical investing?

What is a commodity?

What is a mortgage broker?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

sections

sections

sections

sections

sections

sections

sections

Most read

ANZ hit with class action over ‘interest-free’ credit cards ...

Latest Podcast

What Omicron means for property, and are units right for first-time buyers? What...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

The risks and rewards of investment trusts

Invest

The risks and rewards of investment trusts

The risks and rewards of investment trusts

RELATED ARTICLES

4 property trends that those looking to buy in 2022 will want to know about

Super saver scheme changes to benefit FHBs

Australia’s property market bull run may be on its last legs

more on this topic

Property

4 property trends that those looking to buy in 2022 will want to know about

Property

Super saver scheme changes to benefit FHBs

Property

Australia’s property market bull run may be on its last legs

Property

Property prices are still rising, but growth continues to slow

Property

First home buyers need almost 11 years to save for a deposit

Property

Will 2023 put an end to the housing boom?

Property

Australia’s top 20 suburbs for property investment revealed

Property

CBA forecasts 10% house price drop for 2023

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

nestegg Presents: Meet the Manager – Australian Solar Investments

How much do you expect to spend at Christmas

Is your super really that super?

Meet the Manager series with John Baini - Episode 1

Knowing your rights as a consumer

It PAYS to speak up about your finances

Meet The Manager: The hunt for yield continues domestically despite the Australian economy 'coming off the boil'

Is your car worth it?

Video: Trick or treat this tax time

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

nestegg Presents: Meet the Manager – Australian Solar Investments

How much do you expect to spend at Christmas

Is your super really that super?

Listen

Sick of reading? Let the Nest Egg Podcast deliver information on topics as varied as crypto and emerging markets to retirement strategies and financial literacy straight to your ears.

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness

APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips

What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?

Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?

What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?

The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice

The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super

Listen

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness

Borrow

nestegg will keep you informed about the latest in banking, credit cards, and loans. With our wide-range of comprehensive content, you can get all the information you need on how to borrow money more effectively.

Personal cash loans

Will these changes to joint account data sharing impact you?

What are term deposit interest rates?

Will a personal loan hurt my credit rating?

Payday loans

Square shareholders approve Afterpay buyout