1
00:00:12,640 --> 00:00:15,480
Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm

2
00:00:15,560 --> 00:00:18,800
Speaker 1: James Kirby, the Wealth editor at the Australian. Welcome aboard everybody,

3
00:00:18,840 --> 00:00:22,959
Speaker 1: It's Tuesday. We're talking property and one of our regular

4
00:00:23,040 --> 00:00:26,200
Speaker 1: guests on the show with me today, Jared McCabe of Wakelan,

5
00:00:26,239 --> 00:00:29,480
Speaker 1: will be here in the studio with me. We've got

6
00:00:29,480 --> 00:00:31,320
Speaker 1: a lot on our plates. We wanted to talk to you,

7
00:00:31,360 --> 00:00:34,120
Speaker 1: particularly about buying a first home anywhere in the country.

8
00:00:34,159 --> 00:00:36,480
Speaker 1: If you had a buyer's advocate standing besides you would

9
00:00:36,520 --> 00:00:38,640
Speaker 1: not that be nice. Whether you're a first home buyer

10
00:00:38,720 --> 00:00:40,680
Speaker 1: or any type of buyer, it would be nice. What

11
00:00:40,680 --> 00:00:43,680
Speaker 1: would they say, especially on first homes, What particular guidance

12
00:00:43,680 --> 00:00:46,720
Speaker 1: would they give. We had a big response on the

13
00:00:46,760 --> 00:00:50,640
Speaker 1: shows about land tax, hardly a surprise new tax basically

14
00:00:50,640 --> 00:00:53,520
Speaker 1: coming through the system on property around the country. Victoria

15
00:00:53,800 --> 00:00:56,200
Speaker 1: leading the way on that one, but you noticed in

16
00:00:56,240 --> 00:00:59,360
Speaker 1: the new Southwest budget last week they came in on

17
00:00:59,480 --> 00:01:02,000
Speaker 1: land tak as well, and the land tax costs will

18
00:01:02,000 --> 00:01:06,200
Speaker 1: go up across the state there and also interesting response

19
00:01:06,280 --> 00:01:10,080
Speaker 1: from a lot of listeners about whether on the basis

20
00:01:10,080 --> 00:01:12,600
Speaker 1: that the land tax has driven Victoria into something of

21
00:01:12,680 --> 00:01:15,760
Speaker 1: a slowdown for sure, whether Victoria and Melbourne in particular

22
00:01:16,000 --> 00:01:18,440
Speaker 1: is a bargain in this market, lots to talk about.

23
00:01:19,360 --> 00:01:23,160
Speaker 1: Hello there, Jared James, how you of wake and thank

24
00:01:23,160 --> 00:01:24,200
Speaker 1: you for coming in I problems?

25
00:01:24,200 --> 00:01:24,959
Speaker 2: Thanks for having me again.

26
00:01:25,240 --> 00:01:28,040
Speaker 1: Jared, you might know as a buyer's advocate on the street,

27
00:01:28,200 --> 00:01:30,720
Speaker 1: on the ground and has his own podcast as well

28
00:01:30,720 --> 00:01:34,480
Speaker 1: and is a very articulate member of the advocate community.

29
00:01:34,480 --> 00:01:37,600
Speaker 1: You might say so, just on what we've promised. First

30
00:01:37,640 --> 00:01:40,000
Speaker 1: of all, at the top about if you were buying

31
00:01:40,000 --> 00:01:42,360
Speaker 1: a first home as opposed to an investment property, there's

32
00:01:42,360 --> 00:01:45,360
Speaker 1: probably particular things there. First home buyers probably don't use you,

33
00:01:45,400 --> 00:01:46,919
Speaker 1: do they use advocates very oyd.

34
00:01:46,840 --> 00:01:47,280
Speaker 2: No, they do.

35
00:01:47,440 --> 00:01:50,400
Speaker 3: Look sometimes they are very cost conscious, which is understandable

36
00:01:50,400 --> 00:01:52,480
Speaker 3: because budgets are very restrictive and you've got to take

37
00:01:52,480 --> 00:01:54,880
Speaker 3: into account a lot of things. But we do certainly

38
00:01:54,880 --> 00:01:57,240
Speaker 3: work with first time by its Sometimes it's with parents

39
00:01:57,240 --> 00:01:59,680
Speaker 3: wanting to assist and making sure that they're getting guidance

40
00:01:59,720 --> 00:02:01,520
Speaker 3: to make the right decision. But we do find that

41
00:02:01,520 --> 00:02:03,920
Speaker 3: we do work with first times. It's not probably a

42
00:02:04,000 --> 00:02:07,280
Speaker 3: regular stream, but there are advocates around who that's what

43
00:02:07,320 --> 00:02:10,000
Speaker 3: they pitch at too, that they will work pretty much

44
00:02:10,040 --> 00:02:11,280
Speaker 3: solely with first home buyers.

45
00:02:11,360 --> 00:02:13,840
Speaker 1: I know they're different than see an investor.

46
00:02:13,520 --> 00:02:16,040
Speaker 3: Not necessarily, I mean, well, the buyer is. I mean,

47
00:02:16,080 --> 00:02:18,480
Speaker 3: the advocate is still looking for the same sorts of things,

48
00:02:18,480 --> 00:02:20,239
Speaker 3: but the buyer is different and you need to have

49
00:02:20,280 --> 00:02:22,920
Speaker 3: a different mentality as well. I think from a first

50
00:02:22,919 --> 00:02:25,160
Speaker 3: home buyers perspective, one of the key things to do

51
00:02:25,240 --> 00:02:28,480
Speaker 3: is make sure you've got the support mechanisms around you

52
00:02:28,560 --> 00:02:31,760
Speaker 3: before you really get too far down the track. And

53
00:02:31,760 --> 00:02:34,800
Speaker 3: what I mean by that is mortgage brokers or person

54
00:02:34,840 --> 00:02:36,720
Speaker 3: at the bank, whoever you're dealing with in that space,

55
00:02:37,200 --> 00:02:39,200
Speaker 3: a solicitor or a conveyancer, to make sure that your

56
00:02:39,200 --> 00:02:42,000
Speaker 3: contracts can get reviewed in a timely manner. If it's

57
00:02:42,040 --> 00:02:44,000
Speaker 3: a property that's going to need a building inspection done,

58
00:02:44,040 --> 00:02:45,960
Speaker 3: make sure you know that they're going so you.

59
00:02:46,040 --> 00:02:48,639
Speaker 2: In a position to for the and to be able.

60
00:02:48,400 --> 00:02:51,200
Speaker 3: To respond quickly, because depending upon where you are and

61
00:02:51,200 --> 00:02:53,560
Speaker 3: the type of property that you're looking at auctions, you

62
00:02:53,560 --> 00:02:55,360
Speaker 3: can quite often have a bit of a timeline that

63
00:02:55,400 --> 00:02:58,239
Speaker 3: you work can work towards. But with a private sale,

64
00:02:58,320 --> 00:03:00,760
Speaker 3: things can move very quickly, and if you're not ready

65
00:03:00,760 --> 00:03:04,160
Speaker 3: to submit an offer, or don't know any terms that

66
00:03:04,200 --> 00:03:07,600
Speaker 3: you may need to put forward with that offer. Then

67
00:03:07,720 --> 00:03:09,480
Speaker 3: you can get caught off guard quite quickly.

68
00:03:09,639 --> 00:03:12,919
Speaker 1: Does everyone get a building expection these days? It's not no, no,

69
00:03:13,160 --> 00:03:14,880
Speaker 1: they don't know it's optional. It is.

70
00:03:14,960 --> 00:03:16,200
Speaker 2: It's absolutely it's optional.

71
00:03:16,240 --> 00:03:17,840
Speaker 3: I mean, and depending on the type of property that

72
00:03:17,840 --> 00:03:21,040
Speaker 3: you're looking at, we tend to find apartments, some of

73
00:03:21,080 --> 00:03:23,640
Speaker 3: the oldest style ones. It's worth doing. Sometimes you can

74
00:03:23,680 --> 00:03:25,839
Speaker 3: find that a building inspection with an apartment can only

75
00:03:25,880 --> 00:03:28,520
Speaker 3: tell you so much. Yes, and without them being able

76
00:03:28,600 --> 00:03:30,680
Speaker 3: to take plaster and things off the walls, which not

77
00:03:30,720 --> 00:03:32,200
Speaker 3: many things are going to allow you to do it.

78
00:03:32,960 --> 00:03:35,240
Speaker 3: It doesn't it's not necessarily all that beneficial. But if

79
00:03:35,240 --> 00:03:37,560
Speaker 3: you're looking at a period home, for instance, you'd be

80
00:03:37,600 --> 00:03:38,080
Speaker 3: mad not to.

81
00:03:38,440 --> 00:03:40,839
Speaker 1: Yeah, Or if you knew nothing about building correct, don't

82
00:03:41,040 --> 00:03:44,840
Speaker 1: like me, But well, buying a house many years ago,

83
00:03:45,320 --> 00:03:47,760
Speaker 1: we use a building inspectory. He came out to it

84
00:03:47,840 --> 00:03:51,600
Speaker 1: was one of those old fashioned outside standalone Donnie's the

85
00:03:51,680 --> 00:03:54,920
Speaker 1: head of timber door, and he came through the roof.

86
00:03:54,960 --> 00:03:57,120
Speaker 1: He came through the roof and somehow landed on his

87
00:03:57,160 --> 00:04:00,360
Speaker 1: feet and wasn't turreted, never mentioned anything and complained anything

88
00:04:01,920 --> 00:04:04,040
Speaker 1: when I think about it, the things that happen when

89
00:04:04,080 --> 00:04:05,720
Speaker 1: you buy an old police but that's what a lot

90
00:04:05,760 --> 00:04:07,760
Speaker 1: of people they used to do. At least a part.

91
00:04:07,800 --> 00:04:11,520
Speaker 1: We're told that a lot of buyers are shy for

92
00:04:11,520 --> 00:04:14,680
Speaker 1: a variety of reasons, including the three D shortage of

93
00:04:14,760 --> 00:04:17,760
Speaker 1: going near period homes. But just so on that issue,

94
00:04:17,760 --> 00:04:21,320
Speaker 1: then those principles if you like about buying a first holm,

95
00:04:21,400 --> 00:04:24,200
Speaker 1: if you're an advocate and you are helping someone, are

96
00:04:24,240 --> 00:04:25,560
Speaker 1: they the same in every stage?

97
00:04:25,680 --> 00:04:27,840
Speaker 2: They vary from state to state. I mean, the principles

98
00:04:27,880 --> 00:04:28,480
Speaker 2: around what.

99
00:04:28,520 --> 00:04:31,280
Speaker 3: Will be included and what you should do are the same,

100
00:04:31,680 --> 00:04:34,159
Speaker 3: but there's different things that will be included at different

101
00:04:34,200 --> 00:04:37,440
Speaker 3: stages too. So for instance, if you are in Victoria

102
00:04:37,440 --> 00:04:39,559
Speaker 3: where and you're buying somewhere within the ten to fifteen

103
00:04:39,600 --> 00:04:41,760
Speaker 3: kilometer rats of the city, there's a good chance that

104
00:04:41,760 --> 00:04:44,120
Speaker 3: it could well be an auction. Therefore you need to

105
00:04:44,120 --> 00:04:47,120
Speaker 3: get your building inspection done prior to bidding at that auction.

106
00:04:47,200 --> 00:04:49,839
Speaker 3: Whereas if you go to a regional area or you

107
00:04:49,960 --> 00:04:53,080
Speaker 3: go to perhaps Adelaide, Brisbane, where yes they do auctions,

108
00:04:53,080 --> 00:04:56,200
Speaker 3: but there's also a larger percentage of private sale, then

109
00:04:56,400 --> 00:04:58,040
Speaker 3: you may need to you may be able to submit

110
00:04:58,080 --> 00:05:01,400
Speaker 3: an offer subject to that building and pestings. And there's

111
00:05:01,440 --> 00:05:04,239
Speaker 3: different things that are included within contracts as well around

112
00:05:04,480 --> 00:05:07,880
Speaker 3: owners corporation certificates or minutes from previous AGM. So some

113
00:05:07,960 --> 00:05:10,440
Speaker 3: states require that to be included with the vendor statement.

114
00:05:10,520 --> 00:05:12,479
Speaker 3: Others require the buyer to do the research on that

115
00:05:12,520 --> 00:05:13,560
Speaker 3: side of things themselves.

116
00:05:13,560 --> 00:05:17,440
Speaker 1: Okay, favorite discression around it all. Still, that's what you're.

117
00:05:17,279 --> 00:05:19,480
Speaker 3: There for, and that's what as you said, that's where

118
00:05:19,520 --> 00:05:21,640
Speaker 3: you need to do your due diligence so that you

119
00:05:21,680 --> 00:05:24,400
Speaker 3: know what's required so that when you are ready to

120
00:05:24,440 --> 00:05:28,520
Speaker 3: go and to start searching seriously, that you're prepared.

121
00:05:28,960 --> 00:05:31,000
Speaker 1: We did have, as I mentioned, a lot of people

122
00:05:31,040 --> 00:05:35,479
Speaker 1: were interested in the shill where we talked about whether

123
00:05:35,560 --> 00:05:38,440
Speaker 1: Melbourne was a bargain at the moment relative to the

124
00:05:38,480 --> 00:05:42,159
Speaker 1: other states, and certainly in terms of price increases. It's

125
00:05:42,440 --> 00:05:45,000
Speaker 1: way behind the piece, isn't it. And you're on the

126
00:05:45,040 --> 00:05:48,080
Speaker 1: ground here. Is there a sense that there's it's a

127
00:05:48,080 --> 00:05:48,640
Speaker 1: good time.

128
00:05:48,480 --> 00:05:51,080
Speaker 3: To buy in certain Fieler I mean, there's a lot

129
00:05:51,080 --> 00:05:53,640
Speaker 3: of it depends on who you are as a buyer.

130
00:05:53,680 --> 00:05:56,480
Speaker 3: There's a lot of negativity around investors at the moment

131
00:05:56,640 --> 00:05:59,400
Speaker 3: with exactly as you said, the talk of the discussions

132
00:05:59,400 --> 00:06:01,400
Speaker 3: around land, but there's been a number of other changes.

133
00:06:01,480 --> 00:06:06,400
Speaker 3: Is also further changes proposed around requirements on landlords as

134
00:06:06,400 --> 00:06:07,040
Speaker 3: to what they.

135
00:06:06,920 --> 00:06:09,760
Speaker 2: Need to do to comply.

136
00:06:09,279 --> 00:06:13,240
Speaker 3: Perspective propons, isn't it, And there was an introduction in

137
00:06:13,279 --> 00:06:16,599
Speaker 3: about two years ago, and they're discussing further around insulation

138
00:06:16,720 --> 00:06:18,480
Speaker 3: and air conditioning requirements and those.

139
00:06:18,320 --> 00:06:19,240
Speaker 2: Sorts of things as well.

140
00:06:19,360 --> 00:06:23,200
Speaker 3: So investors in Victoria feel as though it's almost death

141
00:06:23,240 --> 00:06:25,120
Speaker 3: by a thousand cuts. And then when you look and

142
00:06:25,160 --> 00:06:28,320
Speaker 3: see that the growth patterns haven't been as strong in

143
00:06:28,360 --> 00:06:30,520
Speaker 3: the past five to seven years is what they perhaps

144
00:06:30,600 --> 00:06:33,360
Speaker 3: have been in other states, they're starting to look at well,

145
00:06:33,600 --> 00:06:35,719
Speaker 3: is this property worth continuing to hold or should I

146
00:06:35,720 --> 00:06:37,400
Speaker 3: look at alternative investment strategies?

147
00:06:37,400 --> 00:06:39,320
Speaker 2: Should I look at investing in other states?

148
00:06:39,720 --> 00:06:42,760
Speaker 3: So that's part of the reason why the market hasn't

149
00:06:42,839 --> 00:06:45,960
Speaker 3: kicked along. But I think that is another reason why

150
00:06:46,160 --> 00:06:49,440
Speaker 3: when the market does move, Victoria Melbourne particularly is going

151
00:06:49,480 --> 00:06:52,159
Speaker 3: to look quite good in terms of its value for money.

152
00:06:52,279 --> 00:06:54,560
Speaker 1: Yeah. Right, And if you're a first HomeBuyer, obviously you

153
00:06:54,600 --> 00:06:58,440
Speaker 1: want to buy anyway. Are there just I'm always say

154
00:06:58,440 --> 00:07:00,400
Speaker 1: of going too little good because you have a nation

155
00:07:00,440 --> 00:07:04,520
Speaker 1: of models, but quickly either parts of the city you

156
00:07:04,600 --> 00:07:08,120
Speaker 1: think are rape for the first time buyer.

157
00:07:08,520 --> 00:07:10,680
Speaker 3: Well, there's always I mean, first home buyers need to

158
00:07:10,680 --> 00:07:13,520
Speaker 3: look at what they want to because there'll be lifestyle requirements,

159
00:07:13,520 --> 00:07:16,280
Speaker 3: and that's I guess where we differentiate between what you're

160
00:07:16,320 --> 00:07:18,960
Speaker 3: looking for from a personal perspective versus what an investor

161
00:07:19,040 --> 00:07:20,600
Speaker 3: might look for from the bowth point of view. But

162
00:07:20,600 --> 00:07:22,160
Speaker 3: the other thing to always keep in mind as a

163
00:07:22,200 --> 00:07:25,520
Speaker 3: first home buyer is that this is highly unlikely to

164
00:07:25,520 --> 00:07:27,720
Speaker 3: be a property that will be used as a stepping stone.

165
00:07:27,760 --> 00:07:30,240
Speaker 3: It's not going most likely not going to be your

166
00:07:30,240 --> 00:07:33,200
Speaker 3: forever home. So if you get too caught up in

167
00:07:33,240 --> 00:07:35,920
Speaker 3: what might and what I might want right now, you

168
00:07:36,000 --> 00:07:38,680
Speaker 3: may forego other attributes that enable you to take.

169
00:07:38,560 --> 00:07:39,520
Speaker 2: Those steps up the ladder.

170
00:07:39,560 --> 00:07:41,960
Speaker 3: The problem we are able to going forward, So there's almost

171
00:07:42,320 --> 00:07:44,840
Speaker 3: sometimes with a first time buyer, it's a good thing

172
00:07:44,880 --> 00:07:47,360
Speaker 3: to have almost a bit of an investor's mindset, so

173
00:07:47,440 --> 00:07:50,240
Speaker 3: that you are looking at properties that potentially can build

174
00:07:50,280 --> 00:07:51,320
Speaker 3: you some equities.

175
00:07:51,080 --> 00:07:53,000
Speaker 1: Because the stats would say you're going to live there

176
00:07:53,000 --> 00:07:54,200
Speaker 1: for five years.

177
00:07:53,960 --> 00:07:55,800
Speaker 2: Then something in that sort of range.

178
00:07:55,880 --> 00:07:58,320
Speaker 3: Yeah, I mean, ideally from an investor's perspective, you be

179
00:07:58,360 --> 00:08:01,040
Speaker 3: holding property for ten plus years. But if you can

180
00:08:01,080 --> 00:08:03,200
Speaker 3: get a property that as a first home buyer, that

181
00:08:03,240 --> 00:08:05,840
Speaker 3: can build equity because it's got some good growth, but

182
00:08:06,000 --> 00:08:09,160
Speaker 3: also potentially there's ways that you could add value yourself

183
00:08:09,240 --> 00:08:12,200
Speaker 3: to build equity too, then that's going to help you

184
00:08:12,280 --> 00:08:14,520
Speaker 3: to improve your financial position to be able to take

185
00:08:14,560 --> 00:08:16,920
Speaker 3: steps up that property ladder, which is what first home

186
00:08:16,960 --> 00:08:17,600
Speaker 3: buyers want to do.

187
00:08:17,840 --> 00:08:21,520
Speaker 1: Okay, and either price of talent, I think there's opportunities.

188
00:08:21,560 --> 00:08:24,640
Speaker 3: I think the oldest style apartment market's been held back

189
00:08:24,640 --> 00:08:27,480
Speaker 3: in Melbourne for a long period of time, and that's

190
00:08:27,560 --> 00:08:30,520
Speaker 3: more than just COVID. That's been an extensive period. So

191
00:08:30,560 --> 00:08:32,440
Speaker 3: I think there's value to be had in those sorts

192
00:08:32,440 --> 00:08:35,079
Speaker 3: of areas. I think villa units are a good option

193
00:08:35,200 --> 00:08:38,400
Speaker 3: too from a first home buyers perspective, some of the

194
00:08:38,400 --> 00:08:40,959
Speaker 3: middle ring suburbs of Melbourne that have still got really

195
00:08:40,960 --> 00:08:42,440
Speaker 3: good public transport.

196
00:08:42,000 --> 00:08:45,120
Speaker 1: Linkages and you get for the price of an average house,

197
00:08:45,160 --> 00:08:48,240
Speaker 1: you're getting there is a thing about units enough fashionable

198
00:08:48,320 --> 00:08:52,199
Speaker 1: right there. You're talking about the single story clinker sixty

199
00:08:52,280 --> 00:08:54,320
Speaker 1: down the side. Did you get a little garden? You

200
00:08:54,320 --> 00:08:56,439
Speaker 1: get a garage? You get a home basity.

201
00:08:56,760 --> 00:08:59,000
Speaker 3: There's a good link component to those sorts of properties too,

202
00:08:59,080 --> 00:09:01,400
Speaker 3: as opposed to say apartment where you perhaps don't have

203
00:09:01,480 --> 00:09:03,840
Speaker 3: that outdoor space, but with the villa unit you've got

204
00:09:03,880 --> 00:09:06,760
Speaker 3: that little courtyard. Most likely, if you've got the right ones,

205
00:09:06,760 --> 00:09:08,880
Speaker 3: you've got a lock up garage. You've probably got a

206
00:09:09,000 --> 00:09:11,079
Speaker 3: nice entry hallway with rooms leading off, so it's got

207
00:09:11,080 --> 00:09:13,760
Speaker 3: a small house type field. And then if you're in

208
00:09:13,800 --> 00:09:16,680
Speaker 3: a good, quiet residential street that's got good access to

209
00:09:16,720 --> 00:09:20,840
Speaker 3: the local amenities, then if you did choose to upgrade

210
00:09:20,880 --> 00:09:23,360
Speaker 3: at some point, but you're in a strong enough financial position,

211
00:09:23,360 --> 00:09:25,320
Speaker 3: then it may well be a good property to retain

212
00:09:25,360 --> 00:09:27,959
Speaker 3: as an investment and continue to build that way too.

213
00:09:28,080 --> 00:09:30,440
Speaker 1: Oh right, yeah, except you could probably can't do much

214
00:09:30,480 --> 00:09:30,760
Speaker 1: with them.

215
00:09:30,960 --> 00:09:34,640
Speaker 3: The developments, there's limitations, but as land values continue to increase,

216
00:09:34,880 --> 00:09:37,280
Speaker 3: then we're seeing more and more, probably not so much

217
00:09:37,280 --> 00:09:39,319
Speaker 3: in the middle ring suburbs, more in the inner suburbs

218
00:09:39,720 --> 00:09:42,600
Speaker 3: where particularly with some of the older style apartments, developers

219
00:09:42,600 --> 00:09:45,520
Speaker 3: are now coming in because the land value is outstripping

220
00:09:45,720 --> 00:09:48,760
Speaker 3: the value of the improvements. So the sum of the

221
00:09:48,800 --> 00:09:51,280
Speaker 3: parts is actually not as great as the whole, and

222
00:09:51,320 --> 00:09:54,040
Speaker 3: so the developer comes in and says, well, your unit,

223
00:09:54,320 --> 00:09:56,640
Speaker 3: your apartment might only be worth five hundred thousand dollars

224
00:09:56,679 --> 00:09:58,280
Speaker 3: on its own, but if I can get this whole

225
00:09:58,320 --> 00:10:01,440
Speaker 3: parcel of land apartment to me, if I can get them,

226
00:10:01,440 --> 00:10:02,640
Speaker 3: what is worth seven to fifty.

227
00:10:02,800 --> 00:10:04,040
Speaker 2: Yeah, and so we are.

228
00:10:04,320 --> 00:10:07,079
Speaker 3: We've been expecting this. If you speak to my mentor,

229
00:10:07,200 --> 00:10:10,640
Speaker 3: Richard Wakelan, he's been saying this for thirty plus years,

230
00:10:11,080 --> 00:10:13,080
Speaker 3: that this is going to happen, and now he's starting

231
00:10:13,080 --> 00:10:13,240
Speaker 3: to it.

232
00:10:13,720 --> 00:10:14,640
Speaker 2: Yeah, and it's coming through.

233
00:10:14,880 --> 00:10:16,959
Speaker 1: Tell me that did all the cities have those? It

234
00:10:17,000 --> 00:10:18,760
Speaker 1: seems to me they do. Do all the cities have those?

235
00:10:18,760 --> 00:10:20,760
Speaker 1: As Biller units you call them. They were built in

236
00:10:20,800 --> 00:10:23,160
Speaker 1: the what seventies through eighties.

237
00:10:22,880 --> 00:10:24,839
Speaker 2: Sixties, sixties, seventies, nineties.

238
00:10:24,840 --> 00:10:27,040
Speaker 3: I mean there's even some that are nineteen thirties down

239
00:10:27,080 --> 00:10:28,480
Speaker 3: bayside Ellwood sort of way.

240
00:10:28,480 --> 00:10:29,319
Speaker 2: You can see some of the.

241
00:10:29,280 --> 00:10:31,880
Speaker 1: Binger story six six, as you said, drive it down

242
00:10:31,880 --> 00:10:32,200
Speaker 1: the middle.

243
00:10:32,200 --> 00:10:35,520
Speaker 3: Mostly it's sixties and seventies, some in the fifties, but

244
00:10:35,559 --> 00:10:36,800
Speaker 3: mostly sixties and seventies.

245
00:10:36,800 --> 00:10:37,480
Speaker 2: Okay, yeah, so's.

246
00:10:37,800 --> 00:10:40,480
Speaker 3: They can be as small as two or three to

247
00:10:40,559 --> 00:10:43,559
Speaker 3: as big as eighteen to twenty, depending upon the size

248
00:10:43,600 --> 00:10:44,440
Speaker 3: of the parcel of plane.

249
00:10:44,640 --> 00:10:46,760
Speaker 1: It's really interesting you say that, and I've always thought

250
00:10:46,800 --> 00:10:47,880
Speaker 1: the same teen but they are.

251
00:10:47,840 --> 00:10:49,559
Speaker 2: Not cool, they're enough.

252
00:10:51,000 --> 00:10:52,880
Speaker 1: It's hard to move from here. Yeah, it's hard to

253
00:10:52,880 --> 00:10:55,880
Speaker 1: move from you know, you're a fashionable part of town.

254
00:10:55,960 --> 00:10:57,920
Speaker 1: You might be in in the middle of Sydney or

255
00:10:57,920 --> 00:10:59,960
Speaker 1: Melbourne in some fashionable suburb and then you should tell

256
00:11:00,040 --> 00:11:05,360
Speaker 1: your friends we've bought a villa units. But I think

257
00:11:05,360 --> 00:11:07,800
Speaker 1: you're onto something there. Okay, we want to take a

258
00:11:07,800 --> 00:11:26,480
Speaker 1: short break and we'll be back in a moment. Hello,

259
00:11:26,559 --> 00:11:29,680
Speaker 1: Welcome back to the Money Puzzle podcast. I'm James Kirby

260
00:11:29,679 --> 00:11:31,960
Speaker 1: talking to Jared McCabe, regular.

261
00:11:31,760 --> 00:11:32,240
Speaker 2: On the show.

262
00:11:32,440 --> 00:11:36,160
Speaker 1: We're talking property around the nation, investment first home buyers,

263
00:11:36,320 --> 00:11:39,880
Speaker 1: guidance from a buyer's advocate. There for you, the greatly

264
00:11:40,120 --> 00:11:46,360
Speaker 1: underestimated appeal financially of the villa unit. Yes that's six

265
00:11:46,440 --> 00:11:48,920
Speaker 1: units with with the six bins outside you pass on

266
00:11:48,960 --> 00:11:53,040
Speaker 1: Monday morning. Not fashionable. But but we're talking land value

267
00:11:53,200 --> 00:11:56,880
Speaker 1: smack in the middle of the major cities and definitely undervalued.

268
00:11:57,320 --> 00:11:59,120
Speaker 1: And you get a lot for you, as you're saying

269
00:11:59,120 --> 00:12:01,240
Speaker 1: getting bank for your book, you actually get this, get

270
00:12:01,360 --> 00:12:04,480
Speaker 1: a lot. Yeah, very interesting. Now I wanted to ask

271
00:12:04,520 --> 00:12:06,199
Speaker 1: you one other thing before we go to this. We've

272
00:12:06,200 --> 00:12:09,840
Speaker 1: got some great questions, but just a quick one. Mortgage

273
00:12:09,840 --> 00:12:12,680
Speaker 1: broker has become very powerful. Yes, they actually the majority

274
00:12:12,679 --> 00:12:16,040
Speaker 1: of mortgages in Australia are now sold through mortgage brokers,

275
00:12:16,040 --> 00:12:19,240
Speaker 1: though though the bank's process and the bank's mortgages, the

276
00:12:19,280 --> 00:12:22,880
Speaker 1: majority are so by mortgage brokers. They grew from nothing

277
00:12:23,040 --> 00:12:25,360
Speaker 1: once upon a time John Simon's AUSSI home runs and

278
00:12:25,360 --> 00:12:27,640
Speaker 1: they took over the market. Basically, it's suit of the banks.

279
00:12:27,920 --> 00:12:30,720
Speaker 1: Something big happening this year. Come my Bank, the biggest

280
00:12:30,720 --> 00:12:35,120
Speaker 1: bank in the market, the nation's biggest lender, has a

281
00:12:35,160 --> 00:12:38,880
Speaker 1: plan to pull it back in house and kind of

282
00:12:38,880 --> 00:12:42,080
Speaker 1: cut the brokers out. What difference would it make if

283
00:12:42,120 --> 00:12:44,080
Speaker 1: the brokers started to thin out?

284
00:12:44,880 --> 00:12:47,920
Speaker 3: Look, I think from a boyer's perspective, or if you're

285
00:12:47,920 --> 00:12:50,880
Speaker 3: doing refinancing that sort of thing, people will always be

286
00:12:51,160 --> 00:12:52,200
Speaker 3: financially conscious.

287
00:12:52,240 --> 00:12:54,400
Speaker 2: So if there's a wise and means to.

288
00:12:54,360 --> 00:12:56,200
Speaker 3: Be able to save money, there are going to be

289
00:12:56,320 --> 00:12:58,720
Speaker 3: that's going to be a big consideration. But I think

290
00:12:58,760 --> 00:13:01,840
Speaker 3: the other thing that probably hasn't necessarily been discussed quite

291
00:13:01,880 --> 00:13:04,959
Speaker 3: as much is that the personal contact that you can

292
00:13:05,000 --> 00:13:07,560
Speaker 3: get from mortgage broker, I think is really important. And

293
00:13:07,600 --> 00:13:10,440
Speaker 3: the personal attention, whereas you can and you will more

294
00:13:10,480 --> 00:13:12,600
Speaker 3: often than not be dealing with the same person every

295
00:13:12,600 --> 00:13:14,680
Speaker 3: time be able to sit down with you and so

296
00:13:14,800 --> 00:13:18,360
Speaker 3: you know you'll as a personal connection, they know your circumstances,

297
00:13:18,720 --> 00:13:21,480
Speaker 3: whereas quite often with the bank, you'll pick up the

298
00:13:21,480 --> 00:13:23,080
Speaker 3: phone and it'll be a different person that you'll speak

299
00:13:23,120 --> 00:13:26,520
Speaker 3: to every time. So it depends on what you're prioritizing

300
00:13:26,559 --> 00:13:29,160
Speaker 3: to as a client as to whether or not that

301
00:13:29,760 --> 00:13:32,800
Speaker 3: financial side of things is absolutely key. And perhaps for

302
00:13:32,840 --> 00:13:35,480
Speaker 3: a first time buy that might be really important, but

303
00:13:35,600 --> 00:13:40,000
Speaker 3: for others where the personal contact the understanding is vital,

304
00:13:40,640 --> 00:13:43,000
Speaker 3: and I'd probably put myself into that category. I would

305
00:13:43,080 --> 00:13:45,800
Speaker 3: rather have that connection then have to deal with a

306
00:13:45,840 --> 00:13:48,160
Speaker 3: different person to explain my circumstances every time.

307
00:13:48,240 --> 00:13:50,360
Speaker 1: Yeah, and if anyone dould enough to remember, that's what

308
00:13:50,400 --> 00:13:52,360
Speaker 1: it used to be like to ring every bank. You

309
00:13:52,400 --> 00:13:54,440
Speaker 1: want to find out what three banks mortgagris were? Are

310
00:13:54,480 --> 00:13:56,840
Speaker 1: you to ring the three of them? And as Jared says,

311
00:13:57,360 --> 00:13:59,800
Speaker 1: that different person every time. Ohky, I just thought i'd

312
00:13:59,800 --> 00:14:01,480
Speaker 1: bring up with you or I have some really good

313
00:14:01,559 --> 00:14:03,400
Speaker 1: questions I wanted to try and di buye them up.

314
00:14:03,600 --> 00:14:06,320
Speaker 1: So what I'm gonna do is the first two are

315
00:14:06,400 --> 00:14:09,600
Speaker 1: on land tax because just to cover offer listeners in

316
00:14:09,640 --> 00:14:14,840
Speaker 1: case you've missed this, in Victoria, they pulled the threshold

317
00:14:15,400 --> 00:14:19,200
Speaker 1: for paying land tax down to fifty from three hundred.

318
00:14:19,200 --> 00:14:21,840
Speaker 1: So everyone is in the net. Everyone's actually getting their

319
00:14:21,840 --> 00:14:24,200
Speaker 1: bills these few weeks, and they are aghast, of course,

320
00:14:24,200 --> 00:14:26,240
Speaker 1: because they've never got this bill before out of the blue.

321
00:14:26,600 --> 00:14:28,520
Speaker 1: But it's been a way for the Victoria state government,

322
00:14:28,520 --> 00:14:32,680
Speaker 1: which is in deep debt, to find money in the market,

323
00:14:33,080 --> 00:14:35,840
Speaker 1: and there is in parallel with that they have then

324
00:14:35,920 --> 00:14:38,040
Speaker 1: catch up on social housing, which they have to do,

325
00:14:38,600 --> 00:14:41,120
Speaker 1: but in this case, unfortunately, they seem to have mapped

326
00:14:41,160 --> 00:14:45,120
Speaker 1: the sort of price of it straight onto property industry alone.

327
00:14:46,000 --> 00:14:49,840
Speaker 1: Controversial move. Victorian prices have been the softest in the

328
00:14:49,960 --> 00:14:53,320
Speaker 1: nation since they did it. Victorian investors as a percentage

329
00:14:53,360 --> 00:14:57,400
Speaker 1: of buyers in Victoria are only thirty forty percent in

330
00:14:57,480 --> 00:15:01,320
Speaker 1: other states. But interestingly, last week in the new South

331
00:15:01,320 --> 00:15:05,680
Speaker 1: Wales budget they copied Victoria and they have not increased

332
00:15:05,720 --> 00:15:08,240
Speaker 1: the land taxter or whatever, but they've changed just like

333
00:15:08,320 --> 00:15:10,720
Speaker 1: Victoria did. They They've moved. They're playing games with the

334
00:15:10,800 --> 00:15:13,200
Speaker 1: thresholds where they won't index them, so more people will

335
00:15:13,240 --> 00:15:16,600
Speaker 1: be caught every year. People are aware of this now

336
00:15:16,640 --> 00:15:19,640
Speaker 1: that there's basically whether it's coordinated or not doesn't matter.

337
00:15:19,800 --> 00:15:23,720
Speaker 1: The states are driving more taxes and revenues out of

338
00:15:23,720 --> 00:15:27,440
Speaker 1: the property sector to the two big ones already unleashed,

339
00:15:27,480 --> 00:15:29,520
Speaker 1: and we'd see what Queensland has to do. So here's

340
00:15:29,520 --> 00:15:32,880
Speaker 1: the first question from Sally. I'm a long time listening

341
00:15:32,880 --> 00:15:35,680
Speaker 1: to the show. Thank you for the podcast on New

342
00:15:35,720 --> 00:15:39,080
Speaker 1: South Wales tax changes. There was a fair bit of

343
00:15:39,120 --> 00:15:41,640
Speaker 1: discussion how this would effect investors. I'd like to hear

344
00:15:41,680 --> 00:15:44,960
Speaker 1: your view on how it might affect other groups, such

345
00:15:44,960 --> 00:15:48,720
Speaker 1: as first home buyers. The land tax threshold, by the way,

346
00:15:48,760 --> 00:15:53,560
Speaker 1: in Sydney is a million dollars in Victoria's fifty thousands.

347
00:15:53,840 --> 00:15:57,280
Speaker 1: I mean that's extraordinary, isn't it. Anyway, she says, given

348
00:15:57,320 --> 00:16:00,600
Speaker 1: the threasholders a million dollars one point seven five to

349
00:16:01,480 --> 00:16:03,920
Speaker 1: I would think this would drive up people's interest choice

350
00:16:03,960 --> 00:16:09,040
Speaker 1: properties with low land values. Well, yes, Sally, I know

351
00:16:09,200 --> 00:16:17,720
Speaker 1: this is advice of course, any information, yes, but in reality.

352
00:16:14,840 --> 00:16:15,680
Speaker 2: For investors too.

353
00:16:15,760 --> 00:16:17,840
Speaker 3: So for first it's not going to be payable for

354
00:16:17,880 --> 00:16:20,520
Speaker 3: those that are using the properties their principal place of residents.

355
00:16:20,600 --> 00:16:20,800
Speaker 1: Yeah.

356
00:16:20,880 --> 00:16:23,120
Speaker 3: Yeah, but what it may do is that you may

357
00:16:23,200 --> 00:16:27,280
Speaker 3: find that investors start to look at properties where the

358
00:16:27,400 --> 00:16:31,360
Speaker 3: land component is worth below that get to avoid this.

359
00:16:31,760 --> 00:16:34,040
Speaker 3: So what it may do and what may be worth

360
00:16:34,040 --> 00:16:35,800
Speaker 3: considering if you're in a fortunate enough position to be

361
00:16:35,880 --> 00:16:39,000
Speaker 3: able to afford that bracket, is that as an unoccupier,

362
00:16:39,320 --> 00:16:41,640
Speaker 3: you may be getting good value for money by looking

363
00:16:41,680 --> 00:16:44,040
Speaker 3: at properties that have got land values in excess of

364
00:16:44,080 --> 00:16:46,680
Speaker 3: the threshold because there's less competition in.

365
00:16:46,640 --> 00:16:49,640
Speaker 1: That run, because people are just trying to steer under it.

366
00:16:49,720 --> 00:16:52,400
Speaker 3: So we saw that in reverse a number of years

367
00:16:52,440 --> 00:16:55,160
Speaker 3: ago in around the first home buyas grant when it

368
00:16:55,200 --> 00:16:59,280
Speaker 3: was focused on around six hundred thousand dollars and at

369
00:16:59,320 --> 00:17:02,280
Speaker 3: one stage there it was a flat. Anything in excess

370
00:17:02,320 --> 00:17:06,320
Speaker 3: of six hundred thousand dollars, the grant was void. Yeah,

371
00:17:06,359 --> 00:17:09,240
Speaker 3: below six hundred thousand there was discounts.

372
00:17:08,720 --> 00:17:11,080
Speaker 1: So there was great competition and that up to six under.

373
00:17:11,359 --> 00:17:14,040
Speaker 3: As soon as the price went over six hundred thousand,

374
00:17:15,320 --> 00:17:17,200
Speaker 3: they would just drop out. And I remember going to

375
00:17:17,240 --> 00:17:20,240
Speaker 3: an auction a number of years ago for an apartment

376
00:17:20,400 --> 00:17:23,000
Speaker 3: in North Carlton, and I had an investor client looking

377
00:17:23,000 --> 00:17:26,480
Speaker 3: at that property and we had a budget of six

378
00:17:26,520 --> 00:17:29,600
Speaker 3: hundred and ten thousand as a limit, and I paid

379
00:17:29,600 --> 00:17:31,879
Speaker 3: six hundred and one and it was I watched all

380
00:17:31,880 --> 00:17:34,639
Speaker 3: of these first time buys fight as soon as it

381
00:17:34,680 --> 00:17:35,840
Speaker 3: hit the six hundred.

382
00:17:35,720 --> 00:17:37,800
Speaker 2: They all just stopped still. I put six o one

383
00:17:37,840 --> 00:17:38,439
Speaker 2: in an that was it.

384
00:17:38,680 --> 00:17:41,439
Speaker 3: And so there's elements of similarity with that, obviously for

385
00:17:41,480 --> 00:17:45,240
Speaker 3: differing reasons, and it's not a hard and fast limit,

386
00:17:45,280 --> 00:17:48,280
Speaker 3: particularly with the indexation, but that's something that you may

387
00:17:48,359 --> 00:17:51,200
Speaker 3: start to see in New South Wales. That could be

388
00:17:51,359 --> 00:17:56,199
Speaker 3: something that plays out given that the low threshold in Victoria.

389
00:17:55,560 --> 00:17:57,760
Speaker 1: Everyone it doesn't matter, but you could play around the

390
00:17:57,760 --> 00:18:00,680
Speaker 1: Sydney one, which is one million and tventy five thousand

391
00:18:00,720 --> 00:18:02,520
Speaker 1: dollars for what it's worth before an investor has to

392
00:18:02,560 --> 00:18:06,040
Speaker 1: pay antax on the property. It's interesting. It just shows

393
00:18:06,080 --> 00:18:08,320
Speaker 1: you that if you pick up on these changes in

394
00:18:08,359 --> 00:18:10,919
Speaker 1: the market, if you know that, you can really have

395
00:18:10,960 --> 00:18:12,880
Speaker 1: an advantage that you were talking about. If you're at

396
00:18:12,880 --> 00:18:14,760
Speaker 1: an auction and you know that nobody wants to pay

397
00:18:14,760 --> 00:18:17,400
Speaker 1: more than six hundred thousands, you get it for six

398
00:18:17,440 --> 00:18:19,159
Speaker 1: hundred and one. Really good story. It really kind of

399
00:18:19,160 --> 00:18:22,440
Speaker 1: captures what we're talking about. Okay, Pete. Having listened to

400
00:18:22,480 --> 00:18:25,160
Speaker 1: your podcast on NANTAX, I am struck by how complex

401
00:18:25,200 --> 00:18:29,400
Speaker 1: and inefficient the system is. Apart from sporting competitions. Can

402
00:18:29,440 --> 00:18:31,160
Speaker 1: you think of a single good reason why we still

403
00:18:31,160 --> 00:18:35,040
Speaker 1: have state governments? Ah, that's one for another show, Piete.

404
00:18:35,080 --> 00:18:37,760
Speaker 1: I was amazed. It was only in the COVID crisis

405
00:18:37,760 --> 00:18:42,080
Speaker 1: that I realized the extent and the depth of potential

406
00:18:42,080 --> 00:18:44,679
Speaker 1: power of the states really and how they did everything

407
00:18:44,720 --> 00:18:47,320
Speaker 1: differently and really ignoring each other. It was just extraordinary.

408
00:18:47,600 --> 00:18:50,840
Speaker 1: So I suppose that was it at its worst in

409
00:18:50,880 --> 00:18:53,320
Speaker 1: some ways. But then there are other very strong reasons

410
00:18:54,040 --> 00:18:56,720
Speaker 1: four states. It's a big country after all. All I

411
00:18:56,720 --> 00:18:59,320
Speaker 1: can say on property investment is that you should know

412
00:18:59,400 --> 00:19:02,280
Speaker 1: your state and know how things work. We're talking about

413
00:19:02,359 --> 00:19:04,840
Speaker 1: land tax today. There's no land tax in the Northern Territory.

414
00:19:05,000 --> 00:19:07,680
Speaker 3: So I think the important thing from Pea's perspective is

415
00:19:07,720 --> 00:19:09,959
Speaker 3: if you're looking at other taxes and other other states,

416
00:19:10,000 --> 00:19:12,679
Speaker 3: Like you said, James, that you probably need to have

417
00:19:12,720 --> 00:19:14,679
Speaker 3: a good financial planner in your corner there so that

418
00:19:14,720 --> 00:19:18,200
Speaker 3: they know and your accountant who knows your tax circumstances

419
00:19:18,200 --> 00:19:21,000
Speaker 3: and knows your financial position. So that they can say

420
00:19:21,000 --> 00:19:23,320
Speaker 3: to you, well, look you've already got one property in

421
00:19:23,359 --> 00:19:25,440
Speaker 3: this state, and this is if we buy another one,

422
00:19:25,480 --> 00:19:27,359
Speaker 3: this is what's going to happen to your land tax

423
00:19:27,359 --> 00:19:30,240
Speaker 3: because it'll go from single holding the multiple holding and

424
00:19:30,280 --> 00:19:32,560
Speaker 3: how will that impact. So perhaps rather than going there,

425
00:19:32,560 --> 00:19:35,080
Speaker 3: we could go to this state and look at an

426
00:19:35,080 --> 00:19:36,960
Speaker 3: option that way as well. So I think the financial

427
00:19:36,960 --> 00:19:38,600
Speaker 3: planner comes really much into play.

428
00:19:38,480 --> 00:19:41,399
Speaker 1: Assuming that they know all that. Yeah, one other thing

429
00:19:41,440 --> 00:19:44,960
Speaker 1: that struck me there was Queensland in a crazy breeve

430
00:19:45,160 --> 00:19:47,639
Speaker 1: stunt about two years ago. The same government, mind you

431
00:19:47,720 --> 00:19:51,160
Speaker 1: that's there now try to tax even in other states.

432
00:19:51,200 --> 00:19:53,760
Speaker 1: If you recall, yes, I do remember that that was extraordinary.

433
00:19:53,920 --> 00:19:56,399
Speaker 1: They tried to bring in a tax whereby if you

434
00:19:56,480 --> 00:20:00,560
Speaker 1: were in Melbourne and see Queensland and you had a

435
00:20:00,560 --> 00:20:04,000
Speaker 1: property in Melbourne a property in Queensland, they were accounting

436
00:20:04,119 --> 00:20:07,320
Speaker 1: the Melbourne property in it. They were literally raiding another

437
00:20:07,400 --> 00:20:10,000
Speaker 1: state to get money. They didn't get going. It got

438
00:20:10,080 --> 00:20:12,800
Speaker 1: shot down. But there is an election in Queensland and

439
00:20:13,080 --> 00:20:14,880
Speaker 1: in a few weeks and we'll see what they plan

440
00:20:15,000 --> 00:20:16,960
Speaker 1: to do, because they'll do something and we knew that

441
00:20:17,000 --> 00:20:19,440
Speaker 1: way is it's done something. Victoria's done something. So keep

442
00:20:19,440 --> 00:20:22,119
Speaker 1: your eyes open folks on that one. And that's the

443
00:20:22,200 --> 00:20:26,400
Speaker 1: land tax issue. I hope we've covered that properly for you.

444
00:20:27,040 --> 00:20:30,200
Speaker 1: It really is an issue. Everyone thought that negative gearing

445
00:20:30,240 --> 00:20:33,160
Speaker 1: would change, or capit against that would change. Nothing happened

446
00:20:33,320 --> 00:20:36,240
Speaker 1: and then sort of like ambush from another corner, ifture

447
00:20:36,280 --> 00:20:38,679
Speaker 1: come from a different direction, come from the States. Okay,

448
00:20:38,720 --> 00:21:00,680
Speaker 1: we'd be back in a moment with some really good questions. Hello,

449
00:21:00,760 --> 00:21:04,200
Speaker 1: welcome back to The Australian's Money Puzzle podcast. I'm James Kirby, Well,

450
00:21:04,359 --> 00:21:07,119
Speaker 1: editor at The Australian, talking to Jared McKay, a buyer's

451
00:21:07,160 --> 00:21:12,239
Speaker 1: advocate from the Wakeland Group. Okay, Matthew says, is the

452
00:21:12,280 --> 00:21:15,399
Speaker 1: Gold Coast included in Brisbane property market? Everyone talks Sidney,

453
00:21:15,480 --> 00:21:18,000
Speaker 1: Melbourne and Brisbane, just like we were there, Jared, they

454
00:21:18,040 --> 00:21:21,160
Speaker 1: never mentioned the Gold Coast. All my colleagues in Sydney,

455
00:21:21,200 --> 00:21:23,240
Speaker 1: they've two hours away and still live in Sydney. Is

456
00:21:23,280 --> 00:21:26,760
Speaker 1: Brisbane actually Southeast Queensland? Well, I know when I talk

457
00:21:26,840 --> 00:21:29,840
Speaker 1: to the researchers, they always talk about Southeast Queensland as

458
00:21:29,880 --> 00:21:32,760
Speaker 1: a separate unit, not Brisbane. When they say things are

459
00:21:32,760 --> 00:21:34,879
Speaker 1: really happening or whatever, in Southeast Queensland.

460
00:21:34,920 --> 00:21:37,880
Speaker 2: They mean ex Brisbane and Brisbane. I mean my understanding too.

461
00:21:37,880 --> 00:21:41,320
Speaker 3: With Gold Coasters, the population growth theories as big as

462
00:21:41,400 --> 00:21:43,359
Speaker 3: and there was talk at once they job believed that

463
00:21:43,400 --> 00:21:46,360
Speaker 3: it was going to become one of the biggest cities

464
00:21:46,440 --> 00:21:49,760
Speaker 3: in the history outside of the three that we've just mentioned.

465
00:21:50,800 --> 00:21:55,040
Speaker 3: It's in terms of grouping together, it's definitely its own entity.

466
00:21:55,640 --> 00:21:58,399
Speaker 1: It is. Yeah, Southeast Queensland, absolutely, and a lot of

467
00:21:58,440 --> 00:22:01,840
Speaker 1: action there from property market after Perth. It's probably the

468
00:22:01,880 --> 00:22:04,480
Speaker 1: hottest zone in the country right now and maybe even

469
00:22:04,520 --> 00:22:08,399
Speaker 1: a bit more realistic by that, I mean there is

470
00:22:08,480 --> 00:22:12,080
Speaker 1: great price action in Perth, but stocks very tightly held. Yes,

471
00:22:12,200 --> 00:22:12,840
Speaker 1: while you have a.

472
00:22:12,840 --> 00:22:17,679
Speaker 3: Much deeper diverse market around Southeast write a supply increasing support.

473
00:22:17,760 --> 00:22:20,800
Speaker 1: Yeah exactly. Yeah, you have that complexity of the market

474
00:22:21,119 --> 00:22:25,199
Speaker 1: and probably not as volatile in the long period of

475
00:22:25,200 --> 00:22:28,320
Speaker 1: time because you've got the Perth market is invariably linked

476
00:22:29,080 --> 00:22:34,640
Speaker 1: with the success or otherwise of the mining and resources group. Okay,

477
00:22:35,119 --> 00:22:40,359
Speaker 1: Charles says, longtime listener, second time questioner. Okay, I'm fifty four.

478
00:22:40,880 --> 00:22:45,080
Speaker 1: I will paraphrase this with a mortgage on a property

479
00:22:45,680 --> 00:22:49,440
Speaker 1: I'm hoping to downsize and pay off the mortgage and

480
00:22:49,480 --> 00:22:53,600
Speaker 1: retire at sixty. Would you suggest not advice with an

481
00:22:53,640 --> 00:22:57,880
Speaker 1: inherited lonsum I reduced the mortgage immediately or pay down

482
00:22:58,080 --> 00:23:02,560
Speaker 1: the amount into my superree Again Okay, here's the question

483
00:23:04,160 --> 00:23:08,520
Speaker 1: put universally, should you pay down the mortgage or add

484
00:23:08,680 --> 00:23:11,879
Speaker 1: to your Super. I have a colleague Cleono doubt who

485
00:23:11,880 --> 00:23:14,960
Speaker 1: did a peace one in the Weekend Australian just last weekend.

486
00:23:15,359 --> 00:23:17,160
Speaker 1: And it's funny. We can do this piece every year

487
00:23:17,440 --> 00:23:20,359
Speaker 1: and it not only does it always get great readership,

488
00:23:20,400 --> 00:23:23,480
Speaker 1: but it often has a different answer depending on how

489
00:23:23,520 --> 00:23:28,919
Speaker 1: things are going. And just now it's amazing. But technically,

490
00:23:29,000 --> 00:23:32,280
Speaker 1: mathematically really no matter what way you cut it, because

491
00:23:32,280 --> 00:23:35,439
Speaker 1: of the tax advantages of Super, if you had a

492
00:23:35,520 --> 00:23:38,119
Speaker 1: choice between in most cases most of the time, if

493
00:23:38,119 --> 00:23:41,080
Speaker 1: you're the choice between putting a dollar into Super or

494
00:23:41,119 --> 00:23:43,119
Speaker 1: a dollar against your mortgage, even at these rates, the

495
00:23:43,160 --> 00:23:49,560
Speaker 1: dollar into Super is more beneficial mathematically than the dollar

496
00:23:49,640 --> 00:23:52,600
Speaker 1: into the mortgage. But I don't know. I know that's

497
00:23:52,640 --> 00:23:56,080
Speaker 1: the answer, but personally I'm not convinced by it because

498
00:23:56,480 --> 00:23:58,560
Speaker 1: I find it really hard to put a proper value

499
00:23:58,600 --> 00:24:02,399
Speaker 1: on their home and owning the home. The whole system

500
00:24:02,480 --> 00:24:04,560
Speaker 1: is tilted towards you owning the home. The whole tax

501
00:24:04,560 --> 00:24:08,640
Speaker 1: system is tilted towards the home owner, not just a CGT,

502
00:24:08,800 --> 00:24:12,080
Speaker 1: but pension access and everything. With an investor, I'm not

503
00:24:13,160 --> 00:24:17,640
Speaker 1: it might be slightly different. And in this case, I'm

504
00:24:17,840 --> 00:24:21,359
Speaker 1: thinking that Charles is an investor. It doesn't actually spell

505
00:24:21,440 --> 00:24:23,119
Speaker 1: that out. But if you were an investor, then I

506
00:24:23,119 --> 00:24:26,960
Speaker 1: suppose it would you would be weighing it up slightly differently.

507
00:24:27,000 --> 00:24:28,880
Speaker 2: Depends on your tax position and things then too.

508
00:24:29,240 --> 00:24:29,520
Speaker 1: It does.

509
00:24:30,400 --> 00:24:33,040
Speaker 3: So yeah, I think that one's a it's very much

510
00:24:33,040 --> 00:24:36,920
Speaker 3: a personal circumstance talk question. I think it probably needs

511
00:24:36,960 --> 00:24:38,600
Speaker 3: a little bit more of an intimate understanding.

512
00:24:38,880 --> 00:24:41,560
Speaker 1: Yes, sorry, Charles, we are ducking that one. And that's

513
00:24:41,560 --> 00:24:43,720
Speaker 1: fair enough because it's two. I'm sorry, but it's it's

514
00:24:44,000 --> 00:24:46,720
Speaker 1: you know, it really is a highly personalized situation. So

515
00:24:46,800 --> 00:24:49,119
Speaker 1: I tried to make it broader because we can't. I

516
00:24:49,160 --> 00:24:52,240
Speaker 1: give advice, of course, but take a look at Cleono

517
00:24:52,320 --> 00:24:56,159
Speaker 1: Daud's piece last Saturday in the Weekend Australian where she

518
00:24:56,240 --> 00:24:58,840
Speaker 1: measured the two things against each other to see the figures,

519
00:24:58,880 --> 00:25:03,920
Speaker 1: which are of course invariably put together forest Place superannuation groups.

520
00:25:04,119 --> 00:25:06,280
Speaker 1: I guess what they find that you're better off putting

521
00:25:06,320 --> 00:25:08,320
Speaker 1: your money into super The thing we don't know is

522
00:25:08,320 --> 00:25:11,360
Speaker 1: how much is the property really worth long term, and

523
00:25:11,480 --> 00:25:13,280
Speaker 1: it can be very hard to beat that in our

524
00:25:13,400 --> 00:25:16,440
Speaker 1: tax system. Yes. Yeah, so just before we go, tell

525
00:25:16,520 --> 00:25:19,359
Speaker 1: us about the mood on the ground for investors and

526
00:25:19,440 --> 00:25:23,119
Speaker 1: for us tom buyers. People thought interest rates we're going

527
00:25:23,160 --> 00:25:23,479
Speaker 1: to come down.

528
00:25:23,520 --> 00:25:24,159
Speaker 2: They haven't come down.

529
00:25:24,280 --> 00:25:26,280
Speaker 1: Is that method? Is that cool things a bit?

530
00:25:26,440 --> 00:25:28,880
Speaker 3: Probably hasn't changed things too much at this stage. It's

531
00:25:29,040 --> 00:25:32,000
Speaker 3: the market from a Victorian perspective, is pretty well just

532
00:25:32,040 --> 00:25:34,200
Speaker 3: ticking along at present. It tends to go into a

533
00:25:34,200 --> 00:25:37,800
Speaker 3: bit of a hibernation through the school holiday July period.

534
00:25:38,160 --> 00:25:41,640
Speaker 3: There's typically not as much activity around, and then once

535
00:25:41,680 --> 00:25:44,119
Speaker 3: we move into August and September things will start to build.

536
00:25:44,119 --> 00:25:46,120
Speaker 3: So that'll be a really interesting time just to see

537
00:25:46,119 --> 00:25:48,960
Speaker 3: whether or not how the supply levels go, because typically

538
00:25:49,000 --> 00:25:52,080
Speaker 3: if you see that supply lift, if the demand isn't

539
00:25:52,080 --> 00:25:53,840
Speaker 3: there to meet it, then we can see the clearance

540
00:25:53,920 --> 00:25:55,960
Speaker 3: rates start to come off and prices can come back

541
00:25:55,960 --> 00:25:58,480
Speaker 3: a little bit. Yes, and the expectation probably at the

542
00:25:58,520 --> 00:26:00,239
Speaker 3: start of this year, when all the talk that we're

543
00:26:00,280 --> 00:26:01,920
Speaker 3: going to say some interest right cuts in the back

544
00:26:01,920 --> 00:26:04,480
Speaker 3: half of the year that that's where we might start

545
00:26:04,480 --> 00:26:06,440
Speaker 3: to see a little bit of improvement. Yeah, I think

546
00:26:06,480 --> 00:26:09,399
Speaker 3: that's probably still twelve rolling months off. Okay, as in

547
00:26:09,480 --> 00:26:12,880
Speaker 3: from a market movement perspective, because the interest right cuts

548
00:26:12,880 --> 00:26:16,439
Speaker 3: when I do eventually come won't necessarily lead to a

549
00:26:16,520 --> 00:26:18,640
Speaker 3: market jump straight a Whid'll take.

550
00:26:18,440 --> 00:26:22,000
Speaker 1: It to percolate through, just like on the other side

551
00:26:22,040 --> 00:26:24,520
Speaker 1: when you raise interest chates it takes a long time

552
00:26:24,560 --> 00:26:29,399
Speaker 1: to Yeah, does it actually come through? Yeah, yeah, it builds. Okay, terrific, Well,

553
00:26:29,400 --> 00:26:30,800
Speaker 1: thank you very much. Great to have you in the

554
00:26:30,800 --> 00:26:31,440
Speaker 1: studio again.

555
00:26:31,560 --> 00:26:32,159
Speaker 2: Thanks for having me.

556
00:26:32,280 --> 00:26:34,920
Speaker 1: That was Jared McCabe of the Weightlan Group is a

557
00:26:34,920 --> 00:26:37,520
Speaker 1: buyer's advocate and the terrific as usual friend of the show.

558
00:26:37,680 --> 00:26:40,960
Speaker 1: You can catch him here regularly on the Money Puzzle.

559
00:26:41,200 --> 00:26:43,720
Speaker 1: Thank you for all the emails, Keep them coming. I'd

560
00:26:43,720 --> 00:26:46,560
Speaker 1: love to see some more on all subjects the Money

561
00:26:46,560 --> 00:26:49,320
Speaker 1: Puzzle at the Australian dot com dot au. Talk to

562
00:26:49,359 --> 00:27:00,919
Speaker 1: you soon. Four