1 00:00:10,880 --> 00:00:14,200 Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm 2 00:00:14,280 --> 00:00:18,280 Speaker 1: James Kirby. Welcome aboard everybody. If you are watching property 3 00:00:18,280 --> 00:00:22,640 Speaker 1: prices take off around the country, land prices to be precise, really, 4 00:00:24,000 --> 00:00:27,760 Speaker 1: maybe as you're gazing out your back window you might 5 00:00:27,880 --> 00:00:31,800 Speaker 1: be looking at an opportunity right under your nose. My 6 00:00:32,000 --> 00:00:36,200 Speaker 1: guest today is Nathan Fradley, financial advisor from Fradley Advice, 7 00:00:36,479 --> 00:00:39,000 Speaker 1: regular on the show, and we're going to talk about 8 00:00:40,000 --> 00:00:43,760 Speaker 1: this property opportunity which I think has been sort of 9 00:00:43,920 --> 00:00:46,360 Speaker 1: underplayed to some degree, and I'm really interested in what 10 00:00:46,400 --> 00:00:48,080 Speaker 1: he has to say about it because he has been 11 00:00:48,479 --> 00:00:49,680 Speaker 1: involved in it. 12 00:00:49,760 --> 00:00:52,040 Speaker 2: How are you, Nathan, I'm good, James six for having 13 00:00:52,080 --> 00:00:52,480 Speaker 2: on again. 14 00:00:52,920 --> 00:00:54,520 Speaker 1: Great to have you on. I mean, obviously there's a 15 00:00:54,560 --> 00:00:56,040 Speaker 1: couple of other things I want to talk about, but 16 00:00:56,080 --> 00:00:58,160 Speaker 1: I do want to put this up front, if you like, 17 00:00:58,520 --> 00:01:01,880 Speaker 1: just before we do. I've had I think it might 18 00:01:01,920 --> 00:01:05,880 Speaker 1: be one of the questions today from listeners, this ongoing 19 00:01:06,080 --> 00:01:10,920 Speaker 1: suggestion that most advisors, not you, but most financial advisors, 20 00:01:11,000 --> 00:01:14,039 Speaker 1: when you go into them, they just talk about chairs, bonds, 21 00:01:14,440 --> 00:01:19,759 Speaker 1: listed investments, investment platforms, funds they don't like, they don't 22 00:01:19,840 --> 00:01:23,080 Speaker 1: want they are not able, for one way or another, 23 00:01:23,720 --> 00:01:28,120 Speaker 1: to actually advise in any sensible, coherent way on property, 24 00:01:28,160 --> 00:01:32,360 Speaker 1: as we know direct residential property true or false, Nathan Bradley. 25 00:01:32,840 --> 00:01:35,880 Speaker 3: There's there's layers to this, James, And you know I 26 00:01:35,920 --> 00:01:38,560 Speaker 3: loved to be moderate, and you're looking for a headline 27 00:01:38,560 --> 00:01:39,560 Speaker 3: as well, so i'll give you. 28 00:01:39,600 --> 00:01:42,800 Speaker 1: I'll give you desperate for a headline today there is, Yes, 29 00:01:42,840 --> 00:01:45,160 Speaker 1: there's an entire empty newspaper coming out tomorrow. 30 00:01:46,280 --> 00:01:48,240 Speaker 3: I think the first part is to recognize that financial 31 00:01:48,240 --> 00:01:51,600 Speaker 3: advisors are actually only licensed to sell financial products, so 32 00:01:52,000 --> 00:01:53,120 Speaker 3: there is that kind of. 33 00:01:53,080 --> 00:01:54,000 Speaker 2: Restriction in it. 34 00:01:54,040 --> 00:01:56,920 Speaker 3: But I do think there's plenty of advisors out there 35 00:01:56,920 --> 00:01:59,600 Speaker 3: who are more than comfortable to do financial planning and 36 00:01:59,640 --> 00:02:02,920 Speaker 3: incorporate right strategy and property and if they are comfortable 37 00:02:02,960 --> 00:02:05,880 Speaker 3: in doing so, if they licensee or the business they 38 00:02:05,920 --> 00:02:08,679 Speaker 3: work for allows them to. But the other part of 39 00:02:08,720 --> 00:02:13,760 Speaker 3: it is going to be the incentive. And that's always 40 00:02:13,760 --> 00:02:16,080 Speaker 3: been the factor that what we are licensed to provide 41 00:02:16,120 --> 00:02:20,760 Speaker 3: advice on and how we are paid may create a 42 00:02:20,919 --> 00:02:24,200 Speaker 3: difference in how we give advice. Now, there's plenty of 43 00:02:24,200 --> 00:02:26,840 Speaker 3: situations where someone might say, oh, I'd like to buy 44 00:02:26,880 --> 00:02:29,160 Speaker 3: a property, and what they can afford and what makes 45 00:02:29,160 --> 00:02:32,080 Speaker 3: sense doesn't make sense, but I think there is there 46 00:02:32,120 --> 00:02:34,840 Speaker 3: has been, historically, more than now, I would say, a 47 00:02:34,880 --> 00:02:37,560 Speaker 3: tendency to just lean towards things that advisers can charge 48 00:02:37,560 --> 00:02:41,960 Speaker 3: a percentage fe on instead of charging for retirement advice 49 00:02:42,000 --> 00:02:42,480 Speaker 3: as a whole. 50 00:02:43,120 --> 00:02:45,600 Speaker 1: Yeah, And I suppose on one side we have the 51 00:02:45,600 --> 00:02:47,480 Speaker 1: fact that some of them won't give advice. On the 52 00:02:47,480 --> 00:02:49,280 Speaker 1: other side, we have the problem that some of them 53 00:02:49,320 --> 00:02:52,040 Speaker 1: give advice. And that's beautiful to you're alluding to. Okay, 54 00:02:52,240 --> 00:02:54,920 Speaker 1: so on those ones that do, like yourself, So we 55 00:02:55,040 --> 00:02:58,400 Speaker 1: have a I mean, there's obviously this ongoing notion that 56 00:02:58,440 --> 00:03:02,760 Speaker 1: property is expensive, but the chase the property market. Residential 57 00:03:02,800 --> 00:03:05,000 Speaker 1: property market is in very good shape just now, just 58 00:03:05,040 --> 00:03:08,080 Speaker 1: had a very good year. Forecaster for another very strong 59 00:03:08,160 --> 00:03:12,600 Speaker 1: year next year. A lot of demand, strong rental returns, 60 00:03:12,800 --> 00:03:16,840 Speaker 1: virtually zero vacancy rates in many places, capital gains, and 61 00:03:16,880 --> 00:03:18,960 Speaker 1: a lot of this is to do with the value, 62 00:03:19,000 --> 00:03:23,040 Speaker 1: if you like, of residential urban land. One of the 63 00:03:23,040 --> 00:03:25,080 Speaker 1: things that has not been fully explored, it's been a 64 00:03:25,080 --> 00:03:26,920 Speaker 1: while since I even talked about it on the show, 65 00:03:27,040 --> 00:03:31,160 Speaker 1: is densification and the opportunities in that area. I don't 66 00:03:31,200 --> 00:03:35,280 Speaker 1: mean developing, becoming a property developer yourself per se folks. 67 00:03:35,280 --> 00:03:37,360 Speaker 1: But I am talking about whether you are citing on 68 00:03:37,440 --> 00:03:39,560 Speaker 1: a piece of land that could be much better used. 69 00:03:40,320 --> 00:03:42,120 Speaker 1: Have you got a term for this? I know traditionally 70 00:03:42,160 --> 00:03:44,680 Speaker 1: it was granny flats. I think Granni flat's probably too 71 00:03:44,800 --> 00:03:46,800 Speaker 1: narrow these days, is it, Nathan. 72 00:03:46,800 --> 00:03:51,440 Speaker 3: Well, yeah, The Granni flats world is more around transferring 73 00:03:51,480 --> 00:03:55,600 Speaker 3: assets and living somewhere for life, versus the subdivision or 74 00:03:55,640 --> 00:03:59,640 Speaker 3: building the physical Granni flat, which with comes from building 75 00:03:59,680 --> 00:04:01,440 Speaker 3: up these I think there's two parts that as the 76 00:04:01,440 --> 00:04:04,080 Speaker 3: part that says, hey, we've got this space, could we 77 00:04:05,360 --> 00:04:08,000 Speaker 3: drop a tiny home on it, you know something that 78 00:04:08,360 --> 00:04:11,080 Speaker 3: and subject of planning all the other fun stuff and 79 00:04:11,120 --> 00:04:12,920 Speaker 3: get some additional rental board out of it. I think 80 00:04:12,960 --> 00:04:16,520 Speaker 3: that's definitely an opportunity out there. And then there's the 81 00:04:16,520 --> 00:04:19,000 Speaker 3: granny flat other side of that, which is, hey, we've 82 00:04:19,040 --> 00:04:22,760 Speaker 3: got this big house. We've got might be estate planning needs, 83 00:04:22,760 --> 00:04:25,800 Speaker 3: maybe we've got personal care needs, We've got kids that 84 00:04:26,200 --> 00:04:28,599 Speaker 3: need additional support, maybe we spend a lot of time 85 00:04:28,600 --> 00:04:31,080 Speaker 3: with them, they've got a big mortgage, whatever it might be, 86 00:04:31,640 --> 00:04:34,920 Speaker 3: and we are comfortable living together and for whatever is 87 00:04:34,960 --> 00:04:37,920 Speaker 3: in the estate planning and the stars all ALIGNE. Then 88 00:04:37,960 --> 00:04:40,080 Speaker 3: that's kind of this transfer of assets for the right 89 00:04:40,120 --> 00:04:41,880 Speaker 3: to live somewhere, And I think that's going to come 90 00:04:41,960 --> 00:04:45,440 Speaker 3: up a lot as this generational wealth transfer sort of 91 00:04:45,480 --> 00:04:46,440 Speaker 3: story plays out. 92 00:04:47,440 --> 00:04:49,960 Speaker 1: Yes, absolutely, Okay, well let's delve into that. I mean 93 00:04:50,000 --> 00:04:53,640 Speaker 1: there's two parts. Let's do both parts, the intergeneration and notion, 94 00:04:54,080 --> 00:04:56,880 Speaker 1: which is put very simply, like, there's just a scenario 95 00:04:57,000 --> 00:04:58,760 Speaker 1: being that there are two people in the big empty 96 00:04:58,760 --> 00:05:01,919 Speaker 1: house with a large garden back. They have perhaps a 97 00:05:02,000 --> 00:05:05,320 Speaker 1: son or a daughter who is struggling with a family 98 00:05:05,400 --> 00:05:08,159 Speaker 1: in a tiny house, and it's all a bit absurd 99 00:05:09,400 --> 00:05:13,080 Speaker 1: in that scenario. Is there a hypothetical you could put 100 00:05:13,120 --> 00:05:15,360 Speaker 1: forward that would be useful to explore? 101 00:05:15,560 --> 00:05:17,919 Speaker 3: Yeah, So I think the first definition we'd lean on 102 00:05:17,920 --> 00:05:20,480 Speaker 3: as a cendling definition, because that's often where people latch 103 00:05:20,520 --> 00:05:21,480 Speaker 3: onto centlink things. 104 00:05:21,520 --> 00:05:23,479 Speaker 2: So according to center Link, the transfer of. 105 00:05:23,520 --> 00:05:26,560 Speaker 3: Assets, be it a property or cash, for the right 106 00:05:26,680 --> 00:05:29,520 Speaker 3: to live somewhere for the rest of your life constitutes 107 00:05:29,560 --> 00:05:32,120 Speaker 3: a granny flat. So in that instance, we could have 108 00:05:32,760 --> 00:05:35,839 Speaker 3: the parents potentially transfer the house to the kids and 109 00:05:35,880 --> 00:05:37,560 Speaker 3: then they all move in together like parents have the 110 00:05:37,640 --> 00:05:38,960 Speaker 3: right to live there for the rest of their life 111 00:05:39,279 --> 00:05:42,159 Speaker 3: and that transfer happens, or they could sell their house 112 00:05:42,360 --> 00:05:44,320 Speaker 3: and move in with the kids and maybe renovate or 113 00:05:44,360 --> 00:05:45,960 Speaker 3: buy a new house or whatever it is and give 114 00:05:45,960 --> 00:05:50,599 Speaker 3: them assets and those from a senlink perspective, depending on 115 00:05:50,680 --> 00:05:53,840 Speaker 3: how it is done, come with what we call deprivation 116 00:05:53,960 --> 00:05:57,520 Speaker 3: exemptions ie sent link don't assess that money anymore. It's 117 00:05:57,960 --> 00:05:59,680 Speaker 3: not like a gift that you have to assess for 118 00:05:59,680 --> 00:06:03,000 Speaker 3: the next five years. It disappears, So that can have 119 00:06:03,160 --> 00:06:06,039 Speaker 3: really good I suppose outcomes for the right people where 120 00:06:06,560 --> 00:06:09,000 Speaker 3: you've got a situation where you get the co living situation. 121 00:06:09,480 --> 00:06:13,200 Speaker 3: Maybe there's shared responsibilities around taking give grandkids and future 122 00:06:13,240 --> 00:06:15,719 Speaker 3: care responsibilities for the kids to take care of the parents, 123 00:06:16,360 --> 00:06:18,760 Speaker 3: but parents will get to keep their pension, you know, 124 00:06:18,800 --> 00:06:20,640 Speaker 3: the kids get their extra cash and support, maybe a 125 00:06:20,720 --> 00:06:21,479 Speaker 3: reduced mortgage. 126 00:06:21,520 --> 00:06:22,640 Speaker 2: Maybe that have to work as much. 127 00:06:22,720 --> 00:06:25,480 Speaker 3: There's a lot of sort of co benefits in these 128 00:06:25,520 --> 00:06:27,120 Speaker 3: kind of arrangements. 129 00:06:27,200 --> 00:06:29,520 Speaker 1: So for those who are on a pension, who will 130 00:06:29,600 --> 00:06:31,280 Speaker 1: probably be on a pension, which is by the way, 131 00:06:31,320 --> 00:06:33,560 Speaker 1: the majority of Australians right, the majority of students have 132 00:06:33,680 --> 00:06:36,960 Speaker 1: some access to the pension. To retain that access, there's 133 00:06:37,000 --> 00:06:39,440 Speaker 1: certain so tell us how that would work in the 134 00:06:39,480 --> 00:06:41,279 Speaker 1: scenario I've just put forward. 135 00:06:41,360 --> 00:06:43,080 Speaker 3: Yeah, So if you think about I mean the point 136 00:06:43,080 --> 00:06:46,200 Speaker 3: about property made earlier, most Australians hold most of their 137 00:06:46,200 --> 00:06:48,680 Speaker 3: wealth in their property, you know. That's you know, and 138 00:06:48,720 --> 00:06:50,680 Speaker 3: they might be sitting on a you know, on a 139 00:06:50,680 --> 00:06:53,440 Speaker 3: two million dollar house that's unassessed for the age pension, 140 00:06:54,040 --> 00:06:56,120 Speaker 3: and maybe they've got a couple hundred grand it's super 141 00:06:56,200 --> 00:06:59,800 Speaker 3: whatever it might be. That house is currently exempt. If 142 00:06:59,800 --> 00:07:01,920 Speaker 3: they sold it and that money sat in the bank, 143 00:07:02,040 --> 00:07:07,960 Speaker 3: it's now assessed. So I suppose the continuation of that 144 00:07:08,120 --> 00:07:11,120 Speaker 3: is they still live somewhere and centillly going to give 145 00:07:11,160 --> 00:07:14,800 Speaker 3: that exemption to that point. And so there's a few 146 00:07:14,960 --> 00:07:17,120 Speaker 3: sort of curly worthy rules and I won't get too 147 00:07:17,200 --> 00:07:19,240 Speaker 3: heavy into them. Don't do anything until you get vist 148 00:07:19,240 --> 00:07:21,320 Speaker 3: on this one, guys. This is a curly weary one. 149 00:07:21,520 --> 00:07:25,560 Speaker 3: But there is the ability to transfer the property and 150 00:07:25,840 --> 00:07:27,840 Speaker 3: the full value of the property, if done in the 151 00:07:27,920 --> 00:07:32,320 Speaker 3: right way, can be exempt from gifting or from deprivation. 152 00:07:32,320 --> 00:07:33,160 Speaker 2: It's a technical term. 153 00:07:33,800 --> 00:07:36,080 Speaker 3: Or and that could be a ten million door a house, 154 00:07:36,120 --> 00:07:38,840 Speaker 3: mind you, or it could be the sale of the 155 00:07:38,840 --> 00:07:41,480 Speaker 3: property and the transfer of assets and the amount that 156 00:07:41,560 --> 00:07:45,040 Speaker 3: is zempt is calculated based off the youngest party in 157 00:07:45,080 --> 00:07:48,559 Speaker 3: that transaction, the youngest gifter, and basically a life table. 158 00:07:48,640 --> 00:07:51,000 Speaker 2: So there's a series of calculations that are done there. 159 00:07:52,120 --> 00:07:56,480 Speaker 1: Okay, so the couple can actually retain their pension and 160 00:07:56,560 --> 00:08:01,200 Speaker 1: do this arrangement where everyone in intergeneration, where everyone lives 161 00:08:01,320 --> 00:08:04,400 Speaker 1: on the original property and the pension is not affected. 162 00:08:04,680 --> 00:08:06,640 Speaker 1: Tell me that where there's a scenario where there's two 163 00:08:06,720 --> 00:08:08,880 Speaker 1: people and again the same scenario. They want the young 164 00:08:08,920 --> 00:08:11,360 Speaker 1: family to move in with them, but pension doesn't matter. Right, 165 00:08:11,400 --> 00:08:13,360 Speaker 1: So they have more than enough, they don't need the pension. 166 00:08:13,440 --> 00:08:14,240 Speaker 1: Is it easier then? 167 00:08:14,760 --> 00:08:16,760 Speaker 2: Well, this is where the center link thing stops being 168 00:08:16,800 --> 00:08:17,240 Speaker 2: an issue. 169 00:08:17,480 --> 00:08:19,920 Speaker 3: Right, And this is why I think I alluded to 170 00:08:20,000 --> 00:08:23,440 Speaker 3: before this conversation is not so much about granny flat 171 00:08:23,520 --> 00:08:27,040 Speaker 3: rights and the scent link benefits and what have you. 172 00:08:27,320 --> 00:08:31,840 Speaker 3: This actually falls back to intergenerational living arrangements. You know, 173 00:08:32,040 --> 00:08:35,520 Speaker 3: it ties into a state planning, It ties into retention 174 00:08:35,600 --> 00:08:39,240 Speaker 3: of property within the family, It ties into family law. 175 00:08:39,600 --> 00:08:40,800 Speaker 3: You know, you might just. 176 00:08:41,679 --> 00:08:42,679 Speaker 2: Transfer the house to them. 177 00:08:42,800 --> 00:08:45,280 Speaker 3: There's a or a co ownership arrangement or something to 178 00:08:45,280 --> 00:08:47,440 Speaker 3: such an effect. And obviously that has all sorts of 179 00:08:47,440 --> 00:08:49,720 Speaker 3: tie ins around you know, what's in the will, and 180 00:08:49,800 --> 00:08:51,800 Speaker 3: maybe if the children separate or all that kind of 181 00:08:51,840 --> 00:08:54,800 Speaker 3: stuff comes into it. But I think fundamentally it's a 182 00:08:54,800 --> 00:08:59,160 Speaker 3: conversation around as a family, what do we need and 183 00:08:59,160 --> 00:09:01,760 Speaker 3: how can we all benar effort in this world that 184 00:09:01,840 --> 00:09:04,240 Speaker 3: is getting increased in the expensive and harder, but also 185 00:09:05,040 --> 00:09:07,360 Speaker 3: that we can lift together, that we can cohabitate things 186 00:09:07,360 --> 00:09:09,120 Speaker 3: that I think we kind of fell away from through 187 00:09:09,120 --> 00:09:11,520 Speaker 3: the nineties and two thousands and see that coming back. 188 00:09:11,400 --> 00:09:15,160 Speaker 1: Now, right. Is there any numbers about this? I know 189 00:09:15,320 --> 00:09:19,120 Speaker 1: obviously intergeneration well transfer is the huge issue. We also 190 00:09:19,160 --> 00:09:21,400 Speaker 1: know the property prices and the elevation, if you like, 191 00:09:21,559 --> 00:09:23,520 Speaker 1: is a huge issue. Do we have any numbers about 192 00:09:24,000 --> 00:09:25,080 Speaker 1: in this area. 193 00:09:25,280 --> 00:09:27,240 Speaker 3: I don't have any stats on how much this has 194 00:09:27,280 --> 00:09:29,840 Speaker 3: been taken up, but I do know that until the 195 00:09:29,840 --> 00:09:34,240 Speaker 3: twenty twenty one the transfer of those assets was considered 196 00:09:34,240 --> 00:09:36,360 Speaker 3: a D one capital gains event for the recipient, ie 197 00:09:36,480 --> 00:09:39,760 Speaker 3: they paid full tax on it, and so it kind 198 00:09:39,800 --> 00:09:42,640 Speaker 3: of deterred people from doing it. There's a few exemptions 199 00:09:42,679 --> 00:09:44,560 Speaker 3: that the ato of are put in place, but if 200 00:09:44,600 --> 00:09:48,319 Speaker 3: you meet their requirements, then that saves that tax that 201 00:09:48,400 --> 00:09:50,240 Speaker 3: gives you the exemption on that tax, so that I 202 00:09:50,280 --> 00:09:52,200 Speaker 3: think that's sort of drawn people to a lot more 203 00:09:52,240 --> 00:09:52,960 Speaker 3: these days. 204 00:09:53,400 --> 00:09:56,160 Speaker 1: The way it works, folks, is up until twenty twenty one, 205 00:09:56,200 --> 00:09:58,360 Speaker 1: there was a bit of gray area and a lot 206 00:09:58,400 --> 00:10:01,719 Speaker 1: of arrangements where there was build out the back and 207 00:10:01,880 --> 00:10:04,760 Speaker 1: perhaps an older couple living out the back. They were 208 00:10:04,760 --> 00:10:08,200 Speaker 1: informal arrangements and the Board of Taxation moved in. It 209 00:10:08,240 --> 00:10:10,559 Speaker 1: looked like they were kind of clamping down, but in 210 00:10:10,559 --> 00:10:12,480 Speaker 1: fact when they came out the other side of this, 211 00:10:12,559 --> 00:10:16,480 Speaker 1: they sort of formalized the capital gains tax exemption for 212 00:10:16,600 --> 00:10:19,240 Speaker 1: the Brandy flats. That's a really strong issue. I mean, 213 00:10:19,240 --> 00:10:21,160 Speaker 1: even at the time there was three hundred and fifty 214 00:10:21,320 --> 00:10:26,920 Speaker 1: thousand older Australians who lived basically in homes owned by 215 00:10:26,960 --> 00:10:31,360 Speaker 1: their in homes presided in homes owned by their adult children. 216 00:10:31,400 --> 00:10:33,760 Speaker 1: So those arrangements are quite prevalent. And that was a 217 00:10:33,760 --> 00:10:35,800 Speaker 1: couple of years ago, so it can only have increased. 218 00:10:36,280 --> 00:10:37,160 Speaker 2: Let's just look for a. 219 00:10:37,120 --> 00:10:40,080 Speaker 1: Moment, Nathan. So this is a I mean, obviously this 220 00:10:40,160 --> 00:10:42,720 Speaker 1: is terrific, as you say, you costiously say all the time, 221 00:10:43,280 --> 00:10:45,400 Speaker 1: as long as everyone is happy to live together and 222 00:10:46,080 --> 00:10:48,079 Speaker 1: you know they can work that one out for themselves. 223 00:10:48,120 --> 00:10:50,800 Speaker 1: Not for our show to determine that one, But can 224 00:10:50,880 --> 00:10:54,080 Speaker 1: we look very briefly at the notion of the building 225 00:10:54,080 --> 00:10:57,800 Speaker 1: out the back using your property, not for that intergenerational 226 00:10:58,000 --> 00:11:01,880 Speaker 1: setup in the traditional manner, but in a new manner 227 00:11:02,000 --> 00:11:05,680 Speaker 1: where perhaps young adult children could live on the property 228 00:11:05,720 --> 00:11:08,280 Speaker 1: in their own accommodation. How does that work and does 229 00:11:08,320 --> 00:11:09,760 Speaker 1: that have the CGT exemption? 230 00:11:10,960 --> 00:11:14,760 Speaker 3: So if you're talking about in that example of they 231 00:11:14,760 --> 00:11:16,960 Speaker 3: living together, or we're talking about two separate buildings on 232 00:11:17,000 --> 00:11:17,840 Speaker 3: the same lot. 233 00:11:18,480 --> 00:11:21,280 Speaker 1: I'm imagining two separate buildings where I know people have 234 00:11:21,360 --> 00:11:23,920 Speaker 1: bought larger properties and they're say, my plan is you know, 235 00:11:24,000 --> 00:11:25,640 Speaker 1: my son's going to live there or whatever. 236 00:11:25,800 --> 00:11:28,640 Speaker 3: Yeah, I think that will largely fall back to probably 237 00:11:28,640 --> 00:11:32,760 Speaker 3: a planning issue more than anything around what can be 238 00:11:32,840 --> 00:11:35,880 Speaker 3: done with that property. But the premise would fall back 239 00:11:35,920 --> 00:11:38,080 Speaker 3: to how is it transferred? So an example might be 240 00:11:38,679 --> 00:11:40,560 Speaker 3: that there's a large property. 241 00:11:40,640 --> 00:11:41,280 Speaker 2: We'll say it's. 242 00:11:41,160 --> 00:11:44,040 Speaker 3: Less than two hectares because it makes it easier and 243 00:11:44,120 --> 00:11:46,280 Speaker 3: for whatever reason, there can be two buildings on it. 244 00:11:46,840 --> 00:11:50,760 Speaker 3: In that instance, the parents may transfer that full property 245 00:11:50,800 --> 00:11:53,240 Speaker 3: to the name of the children. The children then build 246 00:11:53,280 --> 00:11:55,120 Speaker 3: the second property on there. The parents have the right 247 00:11:55,200 --> 00:11:57,559 Speaker 3: to live there it could be a granny flat. So 248 00:11:58,120 --> 00:12:01,960 Speaker 3: it all falls back to those two elements for Senlink 249 00:12:02,320 --> 00:12:04,640 Speaker 3: if that's relevant, which is the transfer of asset for 250 00:12:04,640 --> 00:12:08,360 Speaker 3: the right to live, and then meeting the requirements for 251 00:12:08,400 --> 00:12:11,440 Speaker 3: the ATO, which is you know basically that it's documented 252 00:12:11,480 --> 00:12:14,240 Speaker 3: that it's not commercial and there's some requirements around either 253 00:12:14,240 --> 00:12:16,960 Speaker 3: being of age, pension age, or requiring. 254 00:12:16,640 --> 00:12:18,240 Speaker 2: Assistance from a disability perspective. 255 00:12:18,320 --> 00:12:21,360 Speaker 3: So and I'm being very blase because they are very 256 00:12:21,400 --> 00:12:23,080 Speaker 3: distinct rules and you've got to make sure you get 257 00:12:23,120 --> 00:12:25,920 Speaker 3: them right or it goes horribly wrong. But you know 258 00:12:25,960 --> 00:12:27,600 Speaker 3: that's how that would tend to work. 259 00:12:28,440 --> 00:12:31,439 Speaker 1: Okay. It's interesting and I imagine it's something that our 260 00:12:31,480 --> 00:12:33,800 Speaker 1: listeners are really tuned into what we're going to do 261 00:12:33,840 --> 00:12:35,360 Speaker 1: with text short break and Nithan's going to tell us 262 00:12:35,360 --> 00:12:37,760 Speaker 1: about an example of where it worked out very well. 263 00:12:37,840 --> 00:12:40,439 Speaker 2: Back in a minute. 264 00:12:44,440 --> 00:12:47,320 Speaker 1: Hello, Welcome back to the Australians Money Positive Podcast. I'm 265 00:12:47,400 --> 00:12:50,800 Speaker 1: James Kirby talking to Nathan Fradley, financial advisor and we 266 00:12:50,880 --> 00:12:55,720 Speaker 1: are talking about building out the back Ymbi's yes, in 267 00:12:55,800 --> 00:13:00,439 Speaker 1: my backyard please. This is optimizing your property from an 268 00:13:00,440 --> 00:13:05,280 Speaker 1: intergenerational perspective. It may be for you that you're all 269 00:13:05,480 --> 00:13:08,880 Speaker 1: adult children, perhaps end up actually moving into the larger 270 00:13:08,920 --> 00:13:11,760 Speaker 1: house you're at the back, or it may be that 271 00:13:12,000 --> 00:13:15,360 Speaker 1: you are putting an adult child in the back and 272 00:13:15,400 --> 00:13:18,240 Speaker 1: you stay in the house. Nathan, just you've got to 273 00:13:18,240 --> 00:13:20,800 Speaker 1: tell us a story about something you came across recently 274 00:13:20,840 --> 00:13:22,079 Speaker 1: in this area. How it all worked. 275 00:13:22,200 --> 00:13:24,480 Speaker 3: Yeah, this is a case I worked on about eighteen 276 00:13:24,520 --> 00:13:28,560 Speaker 3: months ago, and it was effectively, we've got an only 277 00:13:28,640 --> 00:13:32,520 Speaker 3: child with three kids, a partner living in a house 278 00:13:32,840 --> 00:13:36,840 Speaker 3: in Sydney, discerent sized mortgage, both professionals, and then you've 279 00:13:36,840 --> 00:13:40,880 Speaker 3: got mum and dad living in their house. Dad's sort 280 00:13:40,880 --> 00:13:43,040 Speaker 3: of taken ill a little bit, so he needs a 281 00:13:43,040 --> 00:13:45,920 Speaker 3: bit more support. Mom's still working part time and she's 282 00:13:45,920 --> 00:13:49,240 Speaker 3: doing grandchildren stuff, and everyone's kind of chipping in left, 283 00:13:49,320 --> 00:13:49,720 Speaker 3: right and center. 284 00:13:49,760 --> 00:13:50,840 Speaker 2: There's a lot of driving around. 285 00:13:51,400 --> 00:13:54,920 Speaker 3: So they decided to investigate the grainy flat option, and 286 00:13:54,960 --> 00:13:57,160 Speaker 3: what they ended up doing was mom and dad sold 287 00:13:57,200 --> 00:14:02,040 Speaker 3: the property and then transferred the assets to the children 288 00:14:02,200 --> 00:14:03,319 Speaker 3: for the right to live there for the rest of 289 00:14:03,320 --> 00:14:05,200 Speaker 3: their life. But the way they did it was they 290 00:14:05,280 --> 00:14:09,080 Speaker 3: actually paid a series of invoices for a construction, so 291 00:14:09,400 --> 00:14:10,440 Speaker 3: they built an extension. 292 00:14:10,520 --> 00:14:11,120 Speaker 2: They went up. 293 00:14:11,559 --> 00:14:14,600 Speaker 3: Kids live upstairs with their kids. There's a common living 294 00:14:14,640 --> 00:14:16,840 Speaker 3: area downstairs, and mum and dad lived in a more 295 00:14:16,880 --> 00:14:19,960 Speaker 3: accessible spot down below. And what that meant was that 296 00:14:20,440 --> 00:14:22,320 Speaker 3: everyone's in the same household, so we all of a 297 00:14:22,320 --> 00:14:26,360 Speaker 3: sudden save all that time. The kid's mortgage was substantially lower, 298 00:14:26,360 --> 00:14:28,320 Speaker 3: and they actually could reduce their days of work and 299 00:14:28,480 --> 00:14:31,160 Speaker 3: help out with dad more. Mum didn't have to do 300 00:14:31,200 --> 00:14:33,440 Speaker 3: as much, so she could actually get back some form 301 00:14:33,440 --> 00:14:37,080 Speaker 3: of social life again, and it worked really well. It 302 00:14:37,120 --> 00:14:40,040 Speaker 3: worked well because they had lived together during COVID while 303 00:14:40,040 --> 00:14:43,840 Speaker 3: they were saving for that house. Yep, exactly a very 304 00:14:43,880 --> 00:14:46,520 Speaker 3: important mine. It's not in everyone likes ramon situation. You know, 305 00:14:47,040 --> 00:14:50,000 Speaker 3: they only child, so there was that. You know, the 306 00:14:50,040 --> 00:14:52,280 Speaker 3: inheritance piece was less of a concern because once that 307 00:14:52,680 --> 00:14:56,280 Speaker 3: those assets are transferred, they're not the parents' assets anymore. 308 00:14:56,600 --> 00:14:58,560 Speaker 2: They were also quite young, so they're in their. 309 00:14:58,400 --> 00:15:02,120 Speaker 3: Mid sixties or midi late sixties, which meant that the 310 00:15:02,320 --> 00:15:05,520 Speaker 3: transfer itself, when you calculate how much they could transfer, 311 00:15:05,600 --> 00:15:08,160 Speaker 3: was quite high. It was about nine hundred grand, so 312 00:15:09,200 --> 00:15:11,040 Speaker 3: it meant that they could move closer into the city, 313 00:15:11,120 --> 00:15:13,680 Speaker 3: be with a family, still maintain their pension as before 314 00:15:13,880 --> 00:15:15,640 Speaker 3: a little bit of cash left over from the sale, 315 00:15:16,000 --> 00:15:19,880 Speaker 3: but overall everything worked together and then sadly unfortunately a 316 00:15:19,960 --> 00:15:24,040 Speaker 3: dad passed away, but everyone was together for that and 317 00:15:24,240 --> 00:15:26,320 Speaker 3: is still together, so mum's down and living by herself. 318 00:15:26,520 --> 00:15:29,000 Speaker 3: So it kind of had a big flow on effect 319 00:15:29,080 --> 00:15:32,000 Speaker 3: from that around the benefits. But I think, again I 320 00:15:32,080 --> 00:15:34,360 Speaker 3: mentioned before, the stars do align with that one. It's 321 00:15:34,360 --> 00:15:37,040 Speaker 3: a great example of when it works. But you know, 322 00:15:37,280 --> 00:15:38,760 Speaker 3: there's definitely broader considerations. 323 00:15:39,440 --> 00:15:40,480 Speaker 2: Okay, what we. 324 00:15:40,480 --> 00:15:42,480 Speaker 1: Might do is actually get you to just listen, what 325 00:15:42,640 --> 00:15:46,680 Speaker 1: are the key issues to examine if you're thinking of 326 00:15:46,720 --> 00:15:49,880 Speaker 1: this folks. And obviously it course without saying it does 327 00:15:49,920 --> 00:15:55,560 Speaker 1: sound like this really an advisor is ninety nine percent 328 00:15:55,560 --> 00:15:58,920 Speaker 1: compository here just before we do. In terms of the 329 00:16:00,280 --> 00:16:02,440 Speaker 1: commitment that must be made in this, it sounds to 330 00:16:02,480 --> 00:16:04,720 Speaker 1: me that it is the older people that must make 331 00:16:04,760 --> 00:16:07,880 Speaker 1: the commitment, and they must actually sign off a former 332 00:16:07,960 --> 00:16:13,280 Speaker 1: document where they attained the right to live on the property, 333 00:16:13,480 --> 00:16:15,720 Speaker 1: so that's part of their security and it is that right. 334 00:16:16,280 --> 00:16:20,760 Speaker 3: Yeah, so you've got you've got a contract, right, it's 335 00:16:20,760 --> 00:16:23,560 Speaker 3: a commercial arrangement or private arrangement twent two people or 336 00:16:23,560 --> 00:16:27,280 Speaker 3: between those parties, and that document will should have certain 337 00:16:27,280 --> 00:16:29,320 Speaker 3: words in it for cen Lenk purposes, and it should 338 00:16:29,360 --> 00:16:31,640 Speaker 3: have certain words in it for the ats purposes. But 339 00:16:31,680 --> 00:16:34,520 Speaker 3: then broader than that, it should include what the terms 340 00:16:34,560 --> 00:16:36,720 Speaker 3: of the arrangement are we're going to move in. And 341 00:16:37,040 --> 00:16:39,680 Speaker 3: in that case I talked about, the idea was we 342 00:16:39,760 --> 00:16:41,480 Speaker 3: never want to go into residential care. 343 00:16:42,240 --> 00:16:44,480 Speaker 1: Yes, right, and it's written in black and white that 344 00:16:44,600 --> 00:16:46,440 Speaker 1: they have the right to live there forever. 345 00:16:47,120 --> 00:16:49,120 Speaker 2: Forever has to be, has to be. 346 00:16:49,720 --> 00:16:52,200 Speaker 3: There can be exit clauses if it doesn't work, and 347 00:16:52,280 --> 00:16:54,440 Speaker 3: things like that. There is a five year rule that 348 00:16:54,560 --> 00:16:57,240 Speaker 3: sen Alink apply that if it breaks for reasons you 349 00:16:57,320 --> 00:17:00,000 Speaker 3: should have known when you entered it within five years, 350 00:17:00,160 --> 00:17:02,280 Speaker 3: they just unwind the whole thing and chase up the 351 00:17:02,280 --> 00:17:06,160 Speaker 3: pension basically. But in this instance, the agreement was that 352 00:17:06,240 --> 00:17:09,800 Speaker 3: if age care residential care was on the cards, that 353 00:17:10,440 --> 00:17:13,280 Speaker 3: either one of the kid or their wife would actually 354 00:17:13,680 --> 00:17:16,800 Speaker 3: quit their job take care of mum. So there's a 355 00:17:16,840 --> 00:17:20,760 Speaker 3: commit there's a future commitment that sort of tied into 356 00:17:20,800 --> 00:17:23,159 Speaker 3: that that there was this joint what are we going 357 00:17:23,240 --> 00:17:23,399 Speaker 3: to do? 358 00:17:23,440 --> 00:17:25,680 Speaker 2: And that is very that's a very private matter. 359 00:17:25,760 --> 00:17:28,000 Speaker 3: I think how people want to navig at that, what 360 00:17:28,080 --> 00:17:30,600 Speaker 3: the line is for care all of those things. And 361 00:17:30,640 --> 00:17:32,800 Speaker 3: then also or you know who pays for what we're 362 00:17:32,800 --> 00:17:34,240 Speaker 3: going to move in, We're giving this lump sun we 363 00:17:34,240 --> 00:17:35,680 Speaker 3: don't want to have to pay for any more utilities, 364 00:17:35,760 --> 00:17:37,600 Speaker 3: or will chip in this much, all those kinds of 365 00:17:37,680 --> 00:17:40,119 Speaker 3: things that all factors in. So that gets done as 366 00:17:40,119 --> 00:17:43,080 Speaker 3: an agreement. So you should absolutely be getting legal advice 367 00:17:43,480 --> 00:17:46,159 Speaker 3: and both sides should. Those agreements are only as good 368 00:17:46,200 --> 00:17:48,520 Speaker 3: as the advice that he's given on them. So I 369 00:17:48,520 --> 00:17:50,560 Speaker 3: think that's crucial outside of obviously for a. 370 00:17:50,760 --> 00:17:53,479 Speaker 1: Chart is that is both generations basically it should get 371 00:17:53,480 --> 00:17:54,399 Speaker 1: their own legal advice. 372 00:17:54,520 --> 00:17:56,480 Speaker 3: Yeah, one would draft the document, the other one would 373 00:17:56,480 --> 00:17:58,119 Speaker 3: get advice on the document drafted. 374 00:17:58,280 --> 00:17:58,879 Speaker 2: Yeah. 375 00:17:59,000 --> 00:18:02,280 Speaker 3: I think the estate planning stuff comes into that as well. Again, 376 00:18:02,440 --> 00:18:04,560 Speaker 3: a lawyer that does both is usually pretty common. But 377 00:18:05,160 --> 00:18:08,959 Speaker 3: the transfer of assets changes estates, you know, it changes 378 00:18:09,000 --> 00:18:12,760 Speaker 3: the dynamics of the will it's in place, and other siblings, 379 00:18:13,040 --> 00:18:15,080 Speaker 3: is everyone on the same page, all that kind of stuff, 380 00:18:15,480 --> 00:18:17,040 Speaker 3: And then the family law respects. 381 00:18:17,600 --> 00:18:18,439 Speaker 2: I did one recently. 382 00:18:18,480 --> 00:18:21,240 Speaker 3: There was a double granny flat, so nana and mum 383 00:18:21,240 --> 00:18:24,560 Speaker 3: and dad and so there was a family law consideration 384 00:18:24,640 --> 00:18:27,160 Speaker 3: of a's one point four million dollars coming across from 385 00:18:27,200 --> 00:18:30,600 Speaker 3: my family. So they did a binding financial agreement as 386 00:18:30,640 --> 00:18:33,920 Speaker 3: well to kind of build that into the process. And 387 00:18:34,160 --> 00:18:37,000 Speaker 3: these are all these sort of formal considerations that are 388 00:18:37,640 --> 00:18:39,920 Speaker 3: you know, I mean, ultimately you have to get along firstly, 389 00:18:40,280 --> 00:18:42,520 Speaker 3: but I think this is one of those areas if 390 00:18:42,520 --> 00:18:45,000 Speaker 3: you don't, if you don't pay to do it properly, 391 00:18:45,440 --> 00:18:48,040 Speaker 3: you definitely can't afford to pay when it absolutely goes wrong. 392 00:18:48,840 --> 00:18:53,639 Speaker 1: Yeah, Okay, well yes, I imagine. So so there you 393 00:18:53,680 --> 00:18:56,399 Speaker 1: are for isn't that really fascinating? And I think we've 394 00:18:56,400 --> 00:18:58,600 Speaker 1: got to see more and more of this. As you say, Nathan, 395 00:18:58,640 --> 00:19:00,320 Speaker 1: it's hard to get stats on it. The onliest we 396 00:19:00,440 --> 00:19:02,880 Speaker 1: have was that three hundred and fifty thousand and that 397 00:19:02,960 --> 00:19:06,080 Speaker 1: was elderly Australians living, you know, with their own children. 398 00:19:06,480 --> 00:19:09,280 Speaker 1: But one thing we do know from just all you 399 00:19:09,359 --> 00:19:13,080 Speaker 1: have to do is look at property listings. Intergenerational properties 400 00:19:13,200 --> 00:19:16,200 Speaker 1: are not just on the market, but they are being 401 00:19:16,520 --> 00:19:19,640 Speaker 1: created from the ground up more and more, Okay, back 402 00:19:19,640 --> 00:19:29,320 Speaker 1: in a moment with some questions. Hello, Welcome back to 403 00:19:29,359 --> 00:19:33,399 Speaker 1: the Australians Money Puzzle podcast with Nathan Fradley and James Kirby. 404 00:19:33,840 --> 00:19:37,000 Speaker 1: Folks it's interesting. I had two questions, and those two 405 00:19:37,040 --> 00:19:40,600 Speaker 1: questions that actually came in more or less underpinned created 406 00:19:40,640 --> 00:19:42,560 Speaker 1: this show to some degree, but it's worth going back 407 00:19:42,560 --> 00:19:46,040 Speaker 1: over them. The first was from Annie, and he asked, 408 00:19:46,119 --> 00:19:48,239 Speaker 1: I have been to financial advisors more than once, and 409 00:19:48,280 --> 00:19:51,240 Speaker 1: they talk always about shares and funds and platforms. No 410 00:19:51,280 --> 00:19:55,040 Speaker 1: one talks about property investment. Is this always the case? Well? 411 00:19:55,080 --> 00:19:58,600 Speaker 1: I think we kind of covered that just on that issue, Nathan, 412 00:19:58,920 --> 00:20:03,359 Speaker 1: so proper on occasion, an advisor may not even be 413 00:20:03,440 --> 00:20:06,240 Speaker 1: able to give advice because it's not a financial product. 414 00:20:06,320 --> 00:20:06,720 Speaker 1: Is that right? 415 00:20:06,840 --> 00:20:08,640 Speaker 2: I think it. Yeah. It's important to understand what they're 416 00:20:08,680 --> 00:20:09,480 Speaker 2: giving advice on. 417 00:20:09,760 --> 00:20:11,760 Speaker 3: So if you're finding an advisor that you want to 418 00:20:11,760 --> 00:20:14,480 Speaker 3: work with that does property, and I say does property 419 00:20:14,480 --> 00:20:18,560 Speaker 3: with talking points, that's a philosophical alignment. What kind of 420 00:20:18,560 --> 00:20:20,199 Speaker 3: advice do you give? What do you consider them, what 421 00:20:20,240 --> 00:20:23,760 Speaker 3: you do? Do you manage investments? Do you talk about feelings? 422 00:20:23,800 --> 00:20:26,480 Speaker 3: I think that's sort of that area. But what we 423 00:20:26,560 --> 00:20:30,560 Speaker 3: are licensed to give advice on is financial product. But 424 00:20:30,880 --> 00:20:34,720 Speaker 3: when we do retirement planning, we consider and model out 425 00:20:35,080 --> 00:20:38,480 Speaker 3: the long term impacts. We are tax financial advisors. We 426 00:20:38,520 --> 00:20:40,640 Speaker 3: can model for tax We can do all of those 427 00:20:40,680 --> 00:20:42,439 Speaker 3: kinds of things. So when you're getting advice from an 428 00:20:42,440 --> 00:20:46,920 Speaker 3: advisor on property, it's more of a strategic a property 429 00:20:46,960 --> 00:20:49,320 Speaker 3: of blah blah blah blah blah, as opposed to if 430 00:20:49,320 --> 00:20:52,000 Speaker 3: advisor starts telling you like taking you out on a 431 00:20:52,000 --> 00:20:53,879 Speaker 3: Sat Day and going auctions together and all that kind 432 00:20:53,880 --> 00:20:56,479 Speaker 3: of stuff, they might be crossing some boundaries there, but 433 00:20:57,040 --> 00:20:58,199 Speaker 3: it could be a property worth this. 434 00:20:58,680 --> 00:21:00,440 Speaker 2: Here's some local stistics. 435 00:21:00,440 --> 00:21:02,719 Speaker 3: We've made some assumptions like that, and then you go 436 00:21:02,760 --> 00:21:04,639 Speaker 3: off and you purchase that property and come back and 437 00:21:04,680 --> 00:21:06,639 Speaker 3: they sort of adjust the plan and you work together 438 00:21:06,680 --> 00:21:10,840 Speaker 3: on that strategically. That's absolutely something that advices can help with. 439 00:21:11,800 --> 00:21:14,439 Speaker 1: Okay, Yeah, I've never heard that actually sort of written 440 00:21:14,440 --> 00:21:17,639 Speaker 1: out like that. Okay from Ron it's a self managed 441 00:21:17,640 --> 00:21:20,720 Speaker 1: super fund. It's just suitable for residential property investments. And 442 00:21:20,800 --> 00:21:22,920 Speaker 1: do I have to deal with non banks to get 443 00:21:22,960 --> 00:21:28,000 Speaker 1: a loan? A great question, but that not really means 444 00:21:28,000 --> 00:21:29,560 Speaker 1: the person has to really think about the answer. 445 00:21:29,720 --> 00:21:33,320 Speaker 3: Yeah, I know the adswer my rule of thumb is 446 00:21:34,440 --> 00:21:37,200 Speaker 3: not really and the main reasons around that. 447 00:21:37,600 --> 00:21:40,040 Speaker 1: More or less really they're not really suitable not for. 448 00:21:40,000 --> 00:21:42,720 Speaker 3: Residential I'm not saying it's not saying you can't. I 449 00:21:42,760 --> 00:21:44,800 Speaker 3: think there's a couple of factors that fall into it. 450 00:21:45,080 --> 00:21:48,640 Speaker 3: One is, as the listener alluded to, I don't think 451 00:21:48,680 --> 00:21:50,879 Speaker 3: any of the major banks lend to them anymore. I 452 00:21:50,880 --> 00:21:52,720 Speaker 3: could be wrong on that, It's been a while since 453 00:21:52,720 --> 00:21:55,440 Speaker 3: I've looked at it. But secondly, I think a lot 454 00:21:55,440 --> 00:21:58,080 Speaker 3: of the time money is made through residential property through 455 00:21:59,119 --> 00:22:01,680 Speaker 3: self improvement, going in there and being able to do 456 00:22:01,960 --> 00:22:04,800 Speaker 3: repaint things yourself, tidy it up. You know, all those 457 00:22:04,840 --> 00:22:07,880 Speaker 3: sort of assets or development right one or the other, 458 00:22:08,320 --> 00:22:09,600 Speaker 3: and you can't do those. 459 00:22:10,160 --> 00:22:11,800 Speaker 1: No, you can maintain, isn't that right? 460 00:22:11,840 --> 00:22:12,560 Speaker 2: Yeah, and you have to. 461 00:22:12,480 --> 00:22:14,800 Speaker 3: Pay someone else to do so at market rates. So 462 00:22:14,880 --> 00:22:18,320 Speaker 3: that's where you start seeing those sort of strategies fall down. 463 00:22:18,400 --> 00:22:20,560 Speaker 3: I think it's not saying you can't work with plenty 464 00:22:20,560 --> 00:22:23,080 Speaker 3: of clients of the year who've got great residential portfolios 465 00:22:23,119 --> 00:22:27,000 Speaker 3: within SMSFS. I do think diversification falls into it. Sometimes 466 00:22:27,000 --> 00:22:29,000 Speaker 3: we jumped to the idea if I want to buy 467 00:22:29,000 --> 00:22:31,920 Speaker 3: a property in super I've just got enough money by 468 00:22:31,920 --> 00:22:34,360 Speaker 3: what I can afford. Doesn't end up being a great property, 469 00:22:34,800 --> 00:22:38,119 Speaker 3: end up being killed by interest. I think, Yeah, my 470 00:22:38,240 --> 00:22:40,000 Speaker 3: rule of thumb is at least a mill if you're 471 00:22:40,040 --> 00:22:42,160 Speaker 3: going to be, you know, looking at that sort of strategy, 472 00:22:42,200 --> 00:22:44,360 Speaker 3: not the old two hundred thousand dollars in super line 473 00:22:44,400 --> 00:22:45,320 Speaker 3: and the same they used to use. 474 00:22:45,359 --> 00:22:47,480 Speaker 1: I think it's that person would want to have Mitian 475 00:22:47,520 --> 00:22:49,760 Speaker 1: in their super fun before they play in the area. Yeah, 476 00:22:49,760 --> 00:22:53,160 Speaker 1: it's very interesting and not advice folks, of course, information only, 477 00:22:53,560 --> 00:22:56,359 Speaker 1: but a couple of points there. Nathan's making that managed 478 00:22:56,359 --> 00:22:58,880 Speaker 1: super funds. It's a bit ticket item property, so it's 479 00:22:58,880 --> 00:23:00,760 Speaker 1: difficult for first of all, you need a lot in 480 00:23:00,800 --> 00:23:02,960 Speaker 1: your super to really get in there, and you are 481 00:23:03,000 --> 00:23:05,800 Speaker 1: paying more than everybody is because the banks don't do 482 00:23:05,840 --> 00:23:08,200 Speaker 1: it and you must deal with non banks. Other aspects 483 00:23:08,240 --> 00:23:10,760 Speaker 1: of that. Negative gearing isn't as good either, but it 484 00:23:10,800 --> 00:23:13,960 Speaker 1: may suit some. All right, very good, Thank you, Nathan Frandley. 485 00:23:14,000 --> 00:23:16,800 Speaker 1: That was great, Hey, James, I would love to have 486 00:23:16,840 --> 00:23:20,600 Speaker 1: some correspondence on that, especially on the intergenerational living. We 487 00:23:20,640 --> 00:23:24,160 Speaker 1: haven't done enough on that at all. So the money 488 00:23:24,160 --> 00:23:27,080 Speaker 1: Puzzle at the Australian dot com dot au. Talk to 489 00:23:27,119 --> 00:23:27,520 Speaker 1: you soon.