1 00:00:10,080 --> 00:00:12,680 Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. 2 00:00:12,680 --> 00:00:14,760 Speaker 2: I'm James Kirkby. Welcome aboard everybody. 3 00:00:14,840 --> 00:00:18,560 Speaker 1: Some fascinating materials for you today, the property investor. 4 00:00:18,800 --> 00:00:20,239 Speaker 2: What is happening with CGT. 5 00:00:21,200 --> 00:00:23,400 Speaker 1: We have a report in The Australian today that CGT 6 00:00:23,680 --> 00:00:27,040 Speaker 1: discount could be rejected entirely in the budget, but I 7 00:00:27,080 --> 00:00:29,280 Speaker 1: think most likely is a cut in the discount from 8 00:00:29,280 --> 00:00:33,120 Speaker 1: fifty percent twenty five percent. And interestingly, folks, the nation's 9 00:00:33,120 --> 00:00:36,680 Speaker 1: biggest lender, Commonwealth Bank, has modeled what that would do 10 00:00:36,800 --> 00:00:39,760 Speaker 1: property prices and it will probably cut baseline prices by 11 00:00:39,800 --> 00:00:42,200 Speaker 1: about four percent according to the Bank. That's really interesting. 12 00:00:42,280 --> 00:00:43,960 Speaker 1: We're going to talk about that today. We're also going 13 00:00:44,000 --> 00:00:48,159 Speaker 1: to talk about intergenerational property and how changes to CGT 14 00:00:48,240 --> 00:00:50,440 Speaker 1: will have all sorts of knock on effects, including, I 15 00:00:50,479 --> 00:00:54,440 Speaker 1: think very interestingly, the issue of rent festing. Most people 16 00:00:54,480 --> 00:00:57,600 Speaker 1: think of rent festing as just buying a rental property 17 00:00:58,080 --> 00:01:00,279 Speaker 1: and renting their own property, but you can do much 18 00:01:00,320 --> 00:01:02,400 Speaker 1: more than that. You could rent a property and then 19 00:01:02,440 --> 00:01:06,600 Speaker 1: you could invest in both a rental property for yourself 20 00:01:06,680 --> 00:01:10,759 Speaker 1: negatively geared perhaps and also shares. With that in mind, 21 00:01:10,840 --> 00:01:13,520 Speaker 1: my guess is Jackie Clark, who is the author, of course, 22 00:01:13,720 --> 00:01:16,199 Speaker 1: of How to Stop Worrying About Money and an advisor. 23 00:01:16,520 --> 00:01:17,600 Speaker 1: How are you, Jackie? 24 00:01:17,760 --> 00:01:20,240 Speaker 3: I'm fabulous, but when I think about it, I'm a 25 00:01:20,280 --> 00:01:23,440 Speaker 3: little concerned too. Looking at the market today. 26 00:01:24,760 --> 00:01:27,039 Speaker 2: We're talking about the share market. 27 00:01:27,080 --> 00:01:29,760 Speaker 1: I suppose particularly all market's really been tested now with 28 00:01:29,840 --> 00:01:33,120 Speaker 1: the Iran strikes by the US, and of course I 29 00:01:33,200 --> 00:01:36,080 Speaker 1: rans response by attacking more than I think it's nine 30 00:01:36,080 --> 00:01:40,080 Speaker 1: countries so far. Extraordinary annoid prices tipping at well. I 31 00:01:40,800 --> 00:01:42,440 Speaker 1: went to the petro station last night. This is what 32 00:01:42,520 --> 00:01:46,600 Speaker 1: everyone thousand prices, what everyone thinks about right, two twenty 33 00:01:47,080 --> 00:01:50,440 Speaker 1: up from one seventy, I can daze and the price 34 00:01:50,480 --> 00:01:53,639 Speaker 1: per barer obviously touching one hundred and twenty per barer 35 00:01:53,640 --> 00:01:54,840 Speaker 1: there in recent nights. 36 00:01:55,160 --> 00:01:59,760 Speaker 3: Interesting straight off, pretty scary actually, James as well. I 37 00:01:59,800 --> 00:02:04,880 Speaker 3: saw Quantus quoting almost forty thousand dollars for return flights 38 00:02:04,920 --> 00:02:08,480 Speaker 3: to London in April, and I wasn't sure if that 39 00:02:08,560 --> 00:02:11,040 Speaker 3: was the cost of aviation fuel or what was actually 40 00:02:11,080 --> 00:02:13,639 Speaker 3: being in factored in there, but pretty frightening impacts. 41 00:02:13,880 --> 00:02:16,399 Speaker 1: I thought you could have got on a private jet 42 00:02:16,400 --> 00:02:22,480 Speaker 1: for forty thousand. Yes, it is a demanding time for everyone. 43 00:02:22,480 --> 00:02:23,960 Speaker 1: I think folks to cut to the chase for our 44 00:02:24,000 --> 00:02:26,120 Speaker 1: show today. In terms on Tuesday, we do like to 45 00:02:26,120 --> 00:02:29,480 Speaker 1: look at property. Have a listened to my session with 46 00:02:29,560 --> 00:02:32,480 Speaker 1: Will Hamilton just a few days ago on the broader 47 00:02:32,639 --> 00:02:36,880 Speaker 1: listed markets, but on property couple of things immediately a 48 00:02:37,080 --> 00:02:40,000 Speaker 1: interest rates upward pressure all around the world, and here 49 00:02:40,560 --> 00:02:43,520 Speaker 1: b we have to think about the impact of a 50 00:02:43,600 --> 00:02:47,440 Speaker 1: CGT change right now on a market that is pretty 51 00:02:47,520 --> 00:02:50,120 Speaker 1: soft and isn't anything like last year, and there's come well, 52 00:02:50,200 --> 00:02:52,600 Speaker 1: thank if you like seeing that we could have prices 53 00:02:52,680 --> 00:02:56,239 Speaker 1: forward on the CGT one Jackie, like you and your circle, 54 00:02:56,400 --> 00:02:57,160 Speaker 1: what are they thinking? 55 00:02:57,200 --> 00:02:58,080 Speaker 2: What's their assumption? 56 00:02:58,200 --> 00:02:59,799 Speaker 1: I mean, and there's a consensus that it will happen, 57 00:03:00,080 --> 00:03:03,040 Speaker 1: that it'll be that the discount would because in half 58 00:03:03,320 --> 00:03:03,919 Speaker 1: what do you think? 59 00:03:05,160 --> 00:03:08,880 Speaker 3: Well, I mean, principally, the increase in the capital gain 60 00:03:08,919 --> 00:03:12,560 Speaker 3: tax will reduce the effectiveness of borrowing. So when you've 61 00:03:12,600 --> 00:03:16,080 Speaker 3: got that cut in negative the benefit of negative gearing. 62 00:03:16,600 --> 00:03:19,680 Speaker 3: So whilst it makes it less appealing, it's always been 63 00:03:19,720 --> 00:03:24,720 Speaker 3: a pretty good deal, so there's a limited impact of it. 64 00:03:24,760 --> 00:03:27,520 Speaker 3: I think it will be a relatively short term impact 65 00:03:27,600 --> 00:03:30,799 Speaker 3: that the Australian Ways to continue to own property. It's 66 00:03:30,840 --> 00:03:34,120 Speaker 3: still considered a safe investment in Australia. So my sense 67 00:03:34,240 --> 00:03:36,520 Speaker 3: is that there will be a short term impact of 68 00:03:36,560 --> 00:03:40,040 Speaker 3: that reduction and then people will resume normal investment behavior. 69 00:03:40,520 --> 00:03:44,520 Speaker 3: But perhaps it might cause people to contemplate how to 70 00:03:44,560 --> 00:03:47,000 Speaker 3: structure their investments differently as well. 71 00:03:47,080 --> 00:03:49,600 Speaker 2: Do you think it should trigger people to do that? 72 00:03:50,160 --> 00:03:55,240 Speaker 3: Look, we've been very fortunate with our capital gains tax discount, 73 00:03:55,520 --> 00:03:59,240 Speaker 3: so it's worthwhile reflecting on your overall strategy and your 74 00:03:59,280 --> 00:04:02,960 Speaker 3: tax rates, pay the entities that you structure your investments in. 75 00:04:03,080 --> 00:04:07,560 Speaker 3: It might make things like superannuation more appealing and people 76 00:04:07,600 --> 00:04:10,760 Speaker 3: transitioning into things like pension mode or obviously that those 77 00:04:10,800 --> 00:04:12,800 Speaker 3: things will still be much more appealing. 78 00:04:12,960 --> 00:04:15,080 Speaker 2: Would you be property that's appearing visibly other. 79 00:04:15,080 --> 00:04:20,640 Speaker 3: Investments marginally, I'd say okay, yeah, I mean I think 80 00:04:20,680 --> 00:04:23,920 Speaker 3: property is still a challenging investment in Australia because it's 81 00:04:23,960 --> 00:04:26,400 Speaker 3: expensive to hold. We know that transacting in it is 82 00:04:26,480 --> 00:04:30,080 Speaker 3: expensive with things like stamp duty and maintenance and upkeep 83 00:04:30,120 --> 00:04:33,360 Speaker 3: costs which I've forever talking about. So you know, there 84 00:04:33,400 --> 00:04:35,640 Speaker 3: may certainly be a shift, but I don't think that 85 00:04:36,040 --> 00:04:40,880 Speaker 3: our hard headed Australians around property will shift significantly as 86 00:04:40,920 --> 00:04:41,440 Speaker 3: a result. 87 00:04:41,880 --> 00:04:44,679 Speaker 1: It's interesting at the comment Bank report, which did actually 88 00:04:44,680 --> 00:04:47,400 Speaker 1: assess specify how much they thought property prices would fall 89 00:04:48,120 --> 00:04:51,040 Speaker 1: is broadly you know, I won't say it's supportive, but 90 00:04:51,200 --> 00:04:54,680 Speaker 1: its conclusions aren't that the market response would be modest. 91 00:04:55,279 --> 00:04:58,279 Speaker 3: Well, that's right, and if you couple that with a 92 00:04:58,320 --> 00:05:01,720 Speaker 3: potential rate rise. Initially I was thinking of what are 93 00:05:01,720 --> 00:05:04,080 Speaker 3: the benefits for first home buyers or people trying to 94 00:05:04,120 --> 00:05:06,080 Speaker 3: access the market. So you think there might be some 95 00:05:06,160 --> 00:05:09,719 Speaker 3: initial liquidity in the market with people perhaps it's time 96 00:05:09,800 --> 00:05:12,680 Speaker 3: to offload property that you have kept for a while 97 00:05:13,040 --> 00:05:15,560 Speaker 3: and offload it. We can take advantage of the current 98 00:05:15,800 --> 00:05:18,880 Speaker 3: capital gain SAX discount, so that there might be some 99 00:05:18,920 --> 00:05:22,600 Speaker 3: short term maneuvering around that, depending on again what they 100 00:05:22,640 --> 00:05:25,600 Speaker 3: decide in the budget. But then with an interest rate increase, 101 00:05:25,680 --> 00:05:29,160 Speaker 3: I think between a potential you know, more liquidity in 102 00:05:29,200 --> 00:05:32,240 Speaker 3: the market, but the interest rate's going up, it continues 103 00:05:32,279 --> 00:05:35,440 Speaker 3: to keep pressure on the access to the property market 104 00:05:35,480 --> 00:05:39,720 Speaker 3: for younger Australians, which is I had certainly initially it 105 00:05:39,800 --> 00:05:42,679 Speaker 3: was something to drive more activity people. 106 00:05:42,920 --> 00:05:45,360 Speaker 1: Yes, I had thought, I must say I had assumed 107 00:05:46,080 --> 00:05:49,040 Speaker 1: that it brings in they're grand further and fos Just 108 00:05:49,080 --> 00:05:50,880 Speaker 1: in case you're not across what that means. It means 109 00:05:50,960 --> 00:05:53,640 Speaker 1: that anyone's already doing the CGT would be able to 110 00:05:53,640 --> 00:05:55,479 Speaker 1: do it basically for as long as they want, but 111 00:05:55,480 --> 00:05:58,440 Speaker 1: they couldn't do new stuff under CGT. Under the CGT 112 00:05:58,520 --> 00:06:01,560 Speaker 1: a engements that exists today and because because most governments 113 00:06:01,800 --> 00:06:04,080 Speaker 1: most big changes now they've grandfather them so sort of 114 00:06:04,120 --> 00:06:07,320 Speaker 1: smooth out the introduction of it. But pretty partful people 115 00:06:07,360 --> 00:06:10,080 Speaker 1: are saying to the government, you can't grandfather it. If 116 00:06:10,120 --> 00:06:14,560 Speaker 1: your grandfather it, you actually institutionalize the gap, the generation 117 00:06:14,640 --> 00:06:16,880 Speaker 1: and gap the generation of favor. If you like that 118 00:06:16,920 --> 00:06:20,720 Speaker 1: older Australians had against younger ones, what do you think 119 00:06:20,800 --> 00:06:21,120 Speaker 1: check it? 120 00:06:21,360 --> 00:06:24,359 Speaker 3: Well, let's no, I don't agree with that at all. 121 00:06:24,680 --> 00:06:28,240 Speaker 3: And you think in the context of intergenerational wealth transition 122 00:06:29,160 --> 00:06:33,360 Speaker 3: as well, that families have benefited from capital gains, tax 123 00:06:33,440 --> 00:06:36,599 Speaker 3: discounts at the level they are and property and wealth, 124 00:06:36,600 --> 00:06:38,640 Speaker 3: which is largely where wealth is held in Australia, will 125 00:06:38,680 --> 00:06:43,520 Speaker 3: transfer to generations with if you like that grandfather's CGT position, 126 00:06:43,600 --> 00:06:46,000 Speaker 3: that would be lovely. So if that all goes out, 127 00:06:46,200 --> 00:06:48,919 Speaker 3: I think that does affect all generations of Australia. 128 00:06:48,960 --> 00:06:50,279 Speaker 2: Do you think they've grand fathered or not. 129 00:06:51,600 --> 00:06:54,919 Speaker 3: Well, it'd bit highly unusual not to. Yeah, behind on 130 00:06:55,040 --> 00:07:00,000 Speaker 3: incredibly unfavorably from it will operate unfavorably for a police 131 00:07:00,080 --> 00:07:04,040 Speaker 3: equal steppoint, that's for sure. Pretty aggressive, that's right. 132 00:07:04,080 --> 00:07:06,120 Speaker 1: And I suppose if they give anything away there'll be 133 00:07:06,120 --> 00:07:08,160 Speaker 1: a rush to sell, won't there prior to May nine 134 00:07:08,200 --> 00:07:11,480 Speaker 1: when the budget is too inter come into effect. Okay, 135 00:07:11,760 --> 00:07:14,040 Speaker 1: really interesting. We will hold it right there, folks, will 136 00:07:14,040 --> 00:07:24,120 Speaker 1: take short break with back in the moment. Hello, welcome 137 00:07:24,120 --> 00:07:26,240 Speaker 1: back to the Australians Money Puzzle podcast. 138 00:07:26,240 --> 00:07:28,440 Speaker 2: I'm James Kerby. Welcome aboard again everybody. 139 00:07:28,520 --> 00:07:30,320 Speaker 1: Well, one of the things that came up there, Jackie 140 00:07:30,360 --> 00:07:33,280 Speaker 1: was we were just talking if the CGT does change 141 00:07:33,320 --> 00:07:35,240 Speaker 1: how it affects structures. 142 00:07:35,320 --> 00:07:36,040 Speaker 2: This is really. 143 00:07:35,840 --> 00:07:38,600 Speaker 1: Interesting in the concept of what we might call intergenerational 144 00:07:38,680 --> 00:07:41,520 Speaker 1: property and how young people are buying property for instance, 145 00:07:41,520 --> 00:07:44,760 Speaker 1: obviously backed up with government grants these days, but more 146 00:07:44,800 --> 00:07:51,640 Speaker 1: particularly say something like rentfesting, where people are not choosing 147 00:07:51,680 --> 00:07:54,880 Speaker 1: not to live where they first time they buy and 148 00:07:54,920 --> 00:07:58,880 Speaker 1: they rented out for various reasons. Similarly, on this sort 149 00:07:58,920 --> 00:08:02,080 Speaker 1: of generational issue, this whole thing about intergenerational property where 150 00:08:02,080 --> 00:08:06,000 Speaker 1: people are building or developing property for them and their families. 151 00:08:06,000 --> 00:08:07,600 Speaker 1: I think it can be clever in some ways. I'd 152 00:08:07,600 --> 00:08:10,520 Speaker 1: like to talk about that just on renfesting. First of all, 153 00:08:11,440 --> 00:08:13,280 Speaker 1: so we know this is popular, we know people are 154 00:08:13,320 --> 00:08:16,320 Speaker 1: doing it. Their idea obviously is that forever home is 155 00:08:16,440 --> 00:08:19,200 Speaker 1: they can, they will be better able to afford it. 156 00:08:20,440 --> 00:08:25,240 Speaker 1: Will something like renvesting be affected if CGT changes come. 157 00:08:25,120 --> 00:08:30,160 Speaker 3: In Absolutely so in multiple ways, James. So, I'm quite 158 00:08:30,160 --> 00:08:34,000 Speaker 3: a fan of rent vesting, and possibly because of my age, 159 00:08:34,040 --> 00:08:37,280 Speaker 3: so generationally I think rent vesting is giving a lot 160 00:08:37,320 --> 00:08:41,240 Speaker 3: more flexibility to people. And you know I've spoken before 161 00:08:41,280 --> 00:08:43,960 Speaker 3: on your show about the impact of death or divorce 162 00:08:44,160 --> 00:08:48,760 Speaker 3: on relationships and where people live. So renfesting is a 163 00:08:48,760 --> 00:08:51,280 Speaker 3: bit like a holding pattern where it's an option to 164 00:08:52,320 --> 00:08:54,160 Speaker 3: either rent out the place that you were living in 165 00:08:54,320 --> 00:08:56,920 Speaker 3: or sell it in d but actually rent where you'd 166 00:08:57,000 --> 00:08:59,520 Speaker 3: like to live, try something out, and again talking about 167 00:08:59,559 --> 00:09:02,920 Speaker 3: transaction and cost in Australia, that actually makes sense to 168 00:09:03,200 --> 00:09:06,080 Speaker 3: try something before you buy as well. I think it 169 00:09:06,120 --> 00:09:10,080 Speaker 3: has appeal because it provides flexibility. The thing you have 170 00:09:10,120 --> 00:09:12,280 Speaker 3: to be mindful of is something as simple as the 171 00:09:12,320 --> 00:09:16,120 Speaker 3: main residence exemption for capital gains tax purposes may not 172 00:09:16,280 --> 00:09:18,599 Speaker 3: be available to you in that scenario, so you have 173 00:09:18,640 --> 00:09:21,520 Speaker 3: to be a little bit careful about what you're claiming 174 00:09:21,559 --> 00:09:24,959 Speaker 3: in that regard. But the other thing is just again 175 00:09:25,160 --> 00:09:29,240 Speaker 3: enabling people to move about. I think there's a lot 176 00:09:29,280 --> 00:09:31,080 Speaker 3: of appeal for re investing, but the end of the day, 177 00:09:31,120 --> 00:09:32,079 Speaker 3: we're still talking about. 178 00:09:32,080 --> 00:09:34,920 Speaker 1: Is investing better or worse. If they change CDT on 179 00:09:35,000 --> 00:09:36,000 Speaker 1: property only. 180 00:09:36,760 --> 00:09:40,920 Speaker 3: It's still worse, it's still negative. The only difference is, 181 00:09:41,000 --> 00:09:43,400 Speaker 3: and where I work with a lot of people, is 182 00:09:43,480 --> 00:09:47,320 Speaker 3: actually moving cash into like ETFs or the market, so 183 00:09:47,480 --> 00:09:52,040 Speaker 3: moving away from property, still having property in your portfolio, 184 00:09:52,640 --> 00:09:55,440 Speaker 3: but freeing up some cash to actually invest in the market. 185 00:09:55,520 --> 00:09:59,160 Speaker 3: So you've really got multiple strategies working together at once, 186 00:09:59,280 --> 00:10:00,000 Speaker 3: not just proper. 187 00:10:00,800 --> 00:10:04,400 Speaker 1: So renvesting for you is not just renting where you 188 00:10:04,480 --> 00:10:07,680 Speaker 1: live and buying a property. It's renting where you live 189 00:10:08,120 --> 00:10:11,520 Speaker 1: and then the capital let's freed up, diversified investment. 190 00:10:11,600 --> 00:10:12,920 Speaker 2: Is it not just one. 191 00:10:12,840 --> 00:10:16,000 Speaker 3: Hundred percent one hundred percent? Yeah, and that and I 192 00:10:16,040 --> 00:10:18,960 Speaker 3: think that for me it often I talk about flexibility, 193 00:10:19,160 --> 00:10:22,040 Speaker 3: and it's not a holding pattern, but allowing you time, 194 00:10:22,559 --> 00:10:24,800 Speaker 3: especially if you go if you've gone through any particular 195 00:10:24,880 --> 00:10:27,199 Speaker 3: change or transition in life, allowing you time to think 196 00:10:27,240 --> 00:10:29,520 Speaker 3: about where you might like to live, what type of 197 00:10:29,559 --> 00:10:32,000 Speaker 3: debt you might like to take on board. So the 198 00:10:32,080 --> 00:10:34,840 Speaker 3: renting part of it is, this feels like this could 199 00:10:34,840 --> 00:10:37,960 Speaker 3: be right, but I'm not sure, or you need something simpler, 200 00:10:38,120 --> 00:10:41,960 Speaker 3: but you'd like to invest in, you know, eastern suburbs 201 00:10:42,000 --> 00:10:44,280 Speaker 3: of Sydney, for example, but you're not going to live there, 202 00:10:44,800 --> 00:10:48,120 Speaker 3: so it just gives you, I think, greater flexibility. But 203 00:10:48,240 --> 00:10:49,240 Speaker 3: I definitely look at it. 204 00:10:49,200 --> 00:10:50,839 Speaker 1: As a you're going to see you look at as 205 00:10:50,840 --> 00:10:53,880 Speaker 1: a diversified Is it a diversified opportunity? 206 00:10:54,120 --> 00:10:55,920 Speaker 2: Tell me then, yeah, very broadly. 207 00:10:56,040 --> 00:10:57,480 Speaker 1: If I came to you and we were talking about 208 00:10:57,480 --> 00:11:00,280 Speaker 1: this and I said, okay, what's what did I think 209 00:11:00,760 --> 00:11:03,120 Speaker 1: it's a good mix? If it isn't one hundred percent 210 00:11:03,200 --> 00:11:06,120 Speaker 1: property for property, you know what I mean rentvesting, which 211 00:11:06,200 --> 00:11:09,520 Speaker 1: is generally seen as is there a guideline? Do you 212 00:11:09,600 --> 00:11:12,760 Speaker 1: think it should be a clock percentage of the money 213 00:11:12,800 --> 00:11:16,640 Speaker 1: invested that the present gets to have because they're not 214 00:11:16,760 --> 00:11:17,800 Speaker 1: paying a mortgage. 215 00:11:18,679 --> 00:11:21,319 Speaker 2: What percentage might it be outside property? 216 00:11:22,000 --> 00:11:24,840 Speaker 3: Well, well, so it could be zero. And you know 217 00:11:24,880 --> 00:11:27,320 Speaker 3: I work with a number of buyers agents around Sydney 218 00:11:27,360 --> 00:11:31,120 Speaker 3: who will have a whole portfolio of rent vesting essentially, 219 00:11:31,200 --> 00:11:34,080 Speaker 3: so they're completely one way. That's their industry. They're all 220 00:11:34,120 --> 00:11:37,280 Speaker 3: in property. But I've gone completely the other way, which 221 00:11:37,320 --> 00:11:40,760 Speaker 3: is one hundred percent invested outside of property and simply 222 00:11:40,800 --> 00:11:44,520 Speaker 3: renting where they'd like to live. Yep. And you know 223 00:11:44,600 --> 00:11:46,800 Speaker 3: that works very well and whether it's good or not, 224 00:11:46,920 --> 00:11:50,840 Speaker 3: good people take advantage of those different strategies. Again, there's 225 00:11:50,880 --> 00:11:54,360 Speaker 3: more flexibility in the rent vesting space. The only difficult 226 00:11:54,559 --> 00:11:56,840 Speaker 3: is when I've talked to people about that as an option, 227 00:11:57,040 --> 00:11:59,800 Speaker 3: some people aren't prepared to move as regularly as they 228 00:12:00,080 --> 00:12:02,840 Speaker 3: might be required to. The reality is these days, a 229 00:12:02,840 --> 00:12:05,680 Speaker 3: lot of the landlord the rules are to protect the tenants, 230 00:12:05,880 --> 00:12:08,920 Speaker 3: so you have a better chance of being able to 231 00:12:08,960 --> 00:12:11,240 Speaker 3: stay longer term in a place that you're renting that 232 00:12:11,320 --> 00:12:13,040 Speaker 3: you may otherwise have years ago. 233 00:12:13,360 --> 00:12:15,720 Speaker 1: And the renfestors, I presume they're getting better returns on 234 00:12:15,760 --> 00:12:17,520 Speaker 1: the markets than they are on the property. 235 00:12:17,200 --> 00:12:20,840 Speaker 3: Market, und right, And that's another thing you do, that 236 00:12:20,960 --> 00:12:25,719 Speaker 3: comparison of yield. And now with a proposed cut in 237 00:12:25,800 --> 00:12:28,480 Speaker 3: the capital gaing sex, if it's solely relating to property, 238 00:12:28,600 --> 00:12:31,800 Speaker 3: you can start to see perhaps a gap open up there, 239 00:12:32,280 --> 00:12:35,280 Speaker 3: just an additional data point that might prove that the 240 00:12:35,400 --> 00:12:39,080 Speaker 3: market might deliver something quite different or more beneficently yield 241 00:12:39,120 --> 00:12:40,800 Speaker 3: wise better than property. 242 00:12:41,040 --> 00:12:44,439 Speaker 1: You mean the share market basically listening investments deliver better 243 00:12:44,520 --> 00:12:46,480 Speaker 1: both in terms of price again and yield. 244 00:12:47,520 --> 00:12:49,360 Speaker 3: Yes, yeah, yeah, And of course, as you. 245 00:12:49,320 --> 00:12:51,760 Speaker 2: Said, you can gear if you want to. Yes, so 246 00:12:51,880 --> 00:12:52,480 Speaker 2: many people do. 247 00:12:52,520 --> 00:12:55,680 Speaker 3: You can move, that's right anymore they used to? Yeah, 248 00:12:55,679 --> 00:12:57,840 Speaker 3: that's right, those we've learned those lessons. 249 00:12:58,080 --> 00:13:01,080 Speaker 1: Yeah, happy to gear off hugely under on property and 250 00:13:01,200 --> 00:13:04,440 Speaker 1: not wanting to do a penny gearing on shares for 251 00:13:04,480 --> 00:13:04,920 Speaker 1: some reason. 252 00:13:05,240 --> 00:13:07,720 Speaker 3: No, And that's again I could consider that to be 253 00:13:07,800 --> 00:13:10,080 Speaker 3: the Australian way. But perhaps the other thing is people 254 00:13:10,120 --> 00:13:12,160 Speaker 3: don't if they're at a point in their life where 255 00:13:12,160 --> 00:13:16,520 Speaker 3: they want to take less risk or their transitioning executive roles, 256 00:13:16,520 --> 00:13:19,199 Speaker 3: for example, So how much they want to borrow might 257 00:13:19,360 --> 00:13:21,800 Speaker 3: be something they need some time to think about. Again, 258 00:13:21,880 --> 00:13:25,440 Speaker 3: rent vesting is just gives them that flexibility buy some time. 259 00:13:25,800 --> 00:13:29,000 Speaker 3: Perhaps the only thing I would discourage people from doing 260 00:13:29,160 --> 00:13:31,680 Speaker 3: is being out of any of these markets for any 261 00:13:31,720 --> 00:13:35,360 Speaker 3: extended period of time. So moving everything into cash is 262 00:13:35,400 --> 00:13:37,920 Speaker 3: not the path I'd go down, if you know what 263 00:13:38,000 --> 00:13:40,559 Speaker 3: I mean. But I don't like people selling in property 264 00:13:40,600 --> 00:13:43,920 Speaker 3: and getting out and holding onto money. I'd rather say 265 00:13:43,960 --> 00:13:45,600 Speaker 3: stick in the market. Stay in the market. 266 00:13:45,679 --> 00:13:49,760 Speaker 1: Yes, right, if you're not and you can't win, that's 267 00:13:49,800 --> 00:13:51,920 Speaker 1: true this week, all right. I did want to ask 268 00:13:51,920 --> 00:13:54,160 Speaker 1: you one more question though, re investing. I saw a report, 269 00:13:54,280 --> 00:13:57,080 Speaker 1: pretty good report on renvesting. You don't see much about us, 270 00:13:57,360 --> 00:13:59,280 Speaker 1: I'm sure of folks and the nightly events. You don't 271 00:13:59,280 --> 00:14:00,880 Speaker 1: know what we're talking about it, I'm sure you do. 272 00:14:01,000 --> 00:14:03,120 Speaker 1: But it's where somebody says, Okay, instead of buying my 273 00:14:03,160 --> 00:14:07,360 Speaker 1: first house, I'm going to the first property I buy 274 00:14:07,440 --> 00:14:11,360 Speaker 1: is going to be a rental property. And then with 275 00:14:11,559 --> 00:14:15,240 Speaker 1: the cash that's feed up from that, the person tries 276 00:14:15,280 --> 00:14:19,240 Speaker 1: to basically build their investment portfolio with including this property, 277 00:14:19,280 --> 00:14:22,400 Speaker 1: this rental property, and at the same time they rent 278 00:14:22,600 --> 00:14:24,600 Speaker 1: wherever they want to rent, and that they can choose 279 00:14:24,640 --> 00:14:26,480 Speaker 1: on that. But basically the idea is that you get 280 00:14:26,480 --> 00:14:29,240 Speaker 1: ahead of the game. Seems to me all the investing well. Actually, 281 00:14:29,240 --> 00:14:31,800 Speaker 1: this report showed that investing in Australia is alive and kicking, 282 00:14:31,840 --> 00:14:35,000 Speaker 1: but mostly in Sydney, and I wonder is that because 283 00:14:35,240 --> 00:14:40,440 Speaker 1: it is the higher the price of the properties involved, 284 00:14:40,440 --> 00:14:42,200 Speaker 1: the better it works. 285 00:14:43,000 --> 00:14:46,479 Speaker 3: I wouldn't say that's necessarily true, so I'd be surprised. 286 00:14:46,600 --> 00:14:49,000 Speaker 3: I just think it's part of a strategy that you 287 00:14:49,080 --> 00:14:52,920 Speaker 3: can have, and so I would have thought nationally reinvesting 288 00:14:53,080 --> 00:14:56,760 Speaker 3: is alive and well, and in fact, I think at 289 00:14:56,800 --> 00:14:59,040 Speaker 3: the lower end of the market, or certainly under a 290 00:14:59,080 --> 00:15:02,160 Speaker 3: million dollars, so I think this can work quite well. 291 00:15:02,480 --> 00:15:05,440 Speaker 3: The difficulty with that strategy is if you think that 292 00:15:05,560 --> 00:15:07,520 Speaker 3: I'm going to get into the market and do it 293 00:15:07,560 --> 00:15:11,000 Speaker 3: this way. The problem I've found is if this isn't 294 00:15:11,080 --> 00:15:15,080 Speaker 3: a ten year strategy, then the reality is, again because 295 00:15:15,120 --> 00:15:17,720 Speaker 3: of the cost of entering the market with transaction costs, 296 00:15:17,760 --> 00:15:21,200 Speaker 3: you you might break even. You know that five to 297 00:15:21,280 --> 00:15:24,240 Speaker 3: ten year horizon, and when people often say, you know, 298 00:15:24,240 --> 00:15:26,240 Speaker 3: I've saved my money. This is how I'm going to 299 00:15:26,280 --> 00:15:29,560 Speaker 3: the market. The challenge behind that is to get the 300 00:15:29,560 --> 00:15:32,800 Speaker 3: next place that you're looking for. Have you actually got 301 00:15:32,880 --> 00:15:35,120 Speaker 3: enough equity if you like the property you spend your 302 00:15:35,120 --> 00:15:35,520 Speaker 3: money on. 303 00:15:35,760 --> 00:15:42,200 Speaker 1: Oh, that's interesting, So what's a minimum infesting time fram. 304 00:15:40,720 --> 00:15:43,560 Speaker 3: Oh it's not so much about re infesting. It's not 305 00:15:43,600 --> 00:15:45,880 Speaker 3: so much about that. It's the trade off, So which 306 00:15:45,920 --> 00:15:49,920 Speaker 3: decision are you making and when you're which market are 307 00:15:49,920 --> 00:15:52,280 Speaker 3: you're entering into a what cost? So this I think 308 00:15:52,320 --> 00:15:55,120 Speaker 3: re investing is providing more flexibility for people who are 309 00:15:55,160 --> 00:15:55,840 Speaker 3: in the market. 310 00:15:56,880 --> 00:15:58,800 Speaker 2: But while we're at it, is there. I mean, obviously 311 00:15:58,840 --> 00:15:59,720 Speaker 2: you can't do it quickly. 312 00:16:00,920 --> 00:16:03,560 Speaker 3: No you can't. But I think property in Australia is 313 00:16:03,560 --> 00:16:05,320 Speaker 3: not a short term guy. 314 00:16:05,440 --> 00:16:08,040 Speaker 2: So if you're thinking of investing, is there a minimum time. 315 00:16:07,840 --> 00:16:10,360 Speaker 3: Frame, say five to ten years? 316 00:16:10,960 --> 00:16:12,320 Speaker 2: Ye? Yeah, yeah, which is interesting. 317 00:16:12,320 --> 00:16:15,120 Speaker 3: It's a long time with your strategic perspective. Yeah, it 318 00:16:15,200 --> 00:16:17,600 Speaker 3: is a long time. And when you're younger things don't. 319 00:16:17,440 --> 00:16:21,760 Speaker 4: Quite work out, especially when you're younger. Yeah, so if 320 00:16:21,760 --> 00:16:23,920 Speaker 4: you're twenty five, you know you started, you're thinking thirty 321 00:16:23,920 --> 00:16:26,680 Speaker 4: five and it falls into place, So sooner the better, folks. 322 00:16:26,840 --> 00:16:29,360 Speaker 4: All right, I have some great questions which I've kept 323 00:16:29,400 --> 00:16:30,840 Speaker 4: for Jackie. They are wide ranging. 324 00:16:30,880 --> 00:16:32,720 Speaker 1: You will find them very interesting and they are all 325 00:16:32,880 --> 00:16:34,320 Speaker 1: from you the listeners. 326 00:16:34,360 --> 00:16:35,000 Speaker 2: Back in a moment. 327 00:16:42,480 --> 00:16:45,320 Speaker 1: Hello, Welcome back to The Australian's Money Puzzled podcast. I'm 328 00:16:45,400 --> 00:16:48,280 Speaker 1: James Kirby. I'm talking to Jackie Clark, regular on the show. 329 00:16:48,320 --> 00:16:50,360 Speaker 1: She wrote the book How To stop worrying about money. 330 00:16:50,400 --> 00:16:53,760 Speaker 1: She's also a regular contributor on sub stack, where she 331 00:16:54,000 --> 00:16:57,800 Speaker 1: is known as your personal CFO. Okay, before we go 332 00:16:57,840 --> 00:17:00,520 Speaker 1: to questions, listener, questions I should have made in the 333 00:17:00,520 --> 00:17:02,640 Speaker 1: first part. Then the other thing I wanted to just 334 00:17:02,720 --> 00:17:05,840 Speaker 1: quickly talk to you about was intergenerational property, where I 335 00:17:06,000 --> 00:17:09,399 Speaker 1: see and I come across these fascinating examples of people 336 00:17:09,720 --> 00:17:12,680 Speaker 1: buying properly but buying a either buying an old property 337 00:17:12,680 --> 00:17:15,439 Speaker 1: that they divide into many parts to have, you know, 338 00:17:15,560 --> 00:17:18,199 Speaker 1: different generations in there, or sometimes they're just building from 339 00:17:18,240 --> 00:17:20,280 Speaker 1: the ground of plot of land and they're going to 340 00:17:20,320 --> 00:17:22,600 Speaker 1: have you know, going to have granddad and grandmother and 341 00:17:22,640 --> 00:17:23,320 Speaker 1: they're going to have. 342 00:17:23,240 --> 00:17:25,560 Speaker 2: The kids there, et cetera. It's popular. 343 00:17:25,600 --> 00:17:29,280 Speaker 1: I just wanted to know, have you in terms of 344 00:17:29,320 --> 00:17:33,159 Speaker 1: your planet squeeze concept, which it sounds relevant here, is 345 00:17:33,160 --> 00:17:36,280 Speaker 1: there anything people should know investors should know if they're 346 00:17:36,320 --> 00:17:37,600 Speaker 1: going down that path. 347 00:17:38,760 --> 00:17:41,000 Speaker 3: Oh, look, absolutely, James. I think one of the key 348 00:17:41,040 --> 00:17:46,760 Speaker 3: considerations is asset protection. So if you're contemplating bringing multiple 349 00:17:46,760 --> 00:17:50,160 Speaker 3: generations into one property, if you're the owner of that 350 00:17:50,200 --> 00:17:53,119 Speaker 3: does make things complex in terms of the arrangements you 351 00:17:53,160 --> 00:17:57,200 Speaker 3: have with each generation. And also with people who have 352 00:17:57,280 --> 00:18:01,200 Speaker 3: married into the family, it's relevant how things are actually structured. 353 00:18:01,320 --> 00:18:04,760 Speaker 3: So I mean it's a classic consideration for the Sandwich 354 00:18:04,800 --> 00:18:07,440 Speaker 3: generation or what I call planet squeeze, and you think 355 00:18:07,440 --> 00:18:10,720 Speaker 3: of the impact of people are getting married later, they're 356 00:18:10,760 --> 00:18:15,400 Speaker 3: having children later. We've got this the neurogegenerative diseases are increasing, 357 00:18:15,600 --> 00:18:19,240 Speaker 3: so we've got parents seeding care. People are contemplating bringing 358 00:18:19,280 --> 00:18:23,920 Speaker 3: family into their homes, but recognizing this can be very 359 00:18:23,920 --> 00:18:28,159 Speaker 3: complex and the costs are very high because as care accelerates, 360 00:18:28,280 --> 00:18:30,520 Speaker 3: who bears the cost of that. And you can imagine 361 00:18:30,520 --> 00:18:34,480 Speaker 3: in a state planning context how complicated that becomes. If 362 00:18:34,520 --> 00:18:37,240 Speaker 3: you're the family member who takes on the parents, You've 363 00:18:37,240 --> 00:18:40,920 Speaker 3: still got your mature adult kids at home. These things 364 00:18:40,960 --> 00:18:43,240 Speaker 3: get more and more complicated over time. So I think 365 00:18:43,280 --> 00:18:47,600 Speaker 3: the key message is around communication and structure. So when 366 00:18:47,640 --> 00:18:49,480 Speaker 3: you go down the path of doing this thing, you 367 00:18:49,560 --> 00:18:52,840 Speaker 3: really need to set some rules around how you're all 368 00:18:52,880 --> 00:18:56,200 Speaker 3: going to live together and perhaps what the arrangements are, 369 00:18:56,240 --> 00:18:59,960 Speaker 3: both financially and non financially. So that's the key thing 370 00:19:00,160 --> 00:19:02,640 Speaker 3: for me, is really sharing the load with family if 371 00:19:02,640 --> 00:19:03,040 Speaker 3: you can. 372 00:19:03,520 --> 00:19:08,280 Speaker 1: Sounds like it is imperative on this occasion to seek advice. 373 00:19:08,720 --> 00:19:11,320 Speaker 3: Absolutely mmmm yeah. 374 00:19:11,119 --> 00:19:13,119 Speaker 1: I would expect so, because you come across these they 375 00:19:13,200 --> 00:19:15,720 Speaker 1: do you know, they do look attractive and of course 376 00:19:15,800 --> 00:19:20,440 Speaker 1: it can be very useful because you're optimizing land and 377 00:19:20,480 --> 00:19:23,520 Speaker 1: the value of land, which is our biggest expense. 378 00:19:23,520 --> 00:19:24,280 Speaker 2: From most people. 379 00:19:24,600 --> 00:19:27,320 Speaker 3: You see this in a lot of regional families, James 380 00:19:27,359 --> 00:19:29,720 Speaker 3: and I certainly see this in regional New South Wales 381 00:19:29,800 --> 00:19:32,800 Speaker 3: where a big piece of land it's natural the easiest 382 00:19:32,840 --> 00:19:35,240 Speaker 3: thing to do in the next generation build there, and 383 00:19:35,359 --> 00:19:38,760 Speaker 3: the next generation gets married and has children, and that 384 00:19:38,880 --> 00:19:41,480 Speaker 3: might be that one child who stayed in the regional area, 385 00:19:41,520 --> 00:19:44,280 Speaker 3: but the other child's gone to the city. That you 386 00:19:44,280 --> 00:19:47,160 Speaker 3: can see how very quickly that complicates the land ownership 387 00:19:47,680 --> 00:19:49,959 Speaker 3: and the cost of the structure that they've built. They 388 00:19:50,040 --> 00:19:53,840 Speaker 3: might have funded that themselves. Again, it makes it very 389 00:19:53,880 --> 00:19:57,760 Speaker 3: unclear from a state perspective how that will break up 390 00:19:57,760 --> 00:19:58,280 Speaker 3: in time. 391 00:19:58,440 --> 00:20:01,280 Speaker 1: It would be terrible that so a high minded idea 392 00:20:01,359 --> 00:20:05,120 Speaker 1: of intergenerational property. In fact, the end result of it 393 00:20:05,160 --> 00:20:06,879 Speaker 1: is that everyone's fighting in court. 394 00:20:07,119 --> 00:20:10,159 Speaker 3: And I bet that happens a loss of stories in 395 00:20:10,240 --> 00:20:11,919 Speaker 3: the country about in every country. 396 00:20:11,920 --> 00:20:14,000 Speaker 1: Don't worry about that, all right, we must do the 397 00:20:14,040 --> 00:20:16,399 Speaker 1: questions Danielle asks, I love the money puzzle. 398 00:20:16,440 --> 00:20:18,080 Speaker 2: Thank you so much, Thank you, Danielle. 399 00:20:18,240 --> 00:20:22,399 Speaker 1: On the show in twenty to February, Danielle asked a 400 00:20:22,520 --> 00:20:26,240 Speaker 1: question another Danielle asked a question about the surcharge in 401 00:20:26,280 --> 00:20:27,440 Speaker 1: relation to private health. 402 00:20:27,240 --> 00:20:33,120 Speaker 3: Cort Yes, okay, baby, actually job okay, so and we'll 403 00:20:33,160 --> 00:20:33,560 Speaker 3: just read it. 404 00:20:33,680 --> 00:20:36,200 Speaker 1: The tax office pretty much considered us as a family, 405 00:20:36,640 --> 00:20:39,040 Speaker 1: and even if one person is not covered, they're all 406 00:20:39,119 --> 00:20:42,479 Speaker 1: liable for the medical care levy searcharge. Okay, folks, this 407 00:20:42,520 --> 00:20:44,280 Speaker 1: is when you don't have private health cover and you're 408 00:20:44,320 --> 00:20:49,520 Speaker 1: prepared to pay the levee surcharge. Now hear this, Danielle says, 409 00:20:49,560 --> 00:20:53,119 Speaker 1: I find this situation applies also to a couple. My 410 00:20:53,280 --> 00:20:55,960 Speaker 1: husband has private health cover, but I've gopped mine. My 411 00:20:56,040 --> 00:20:58,680 Speaker 1: accountant informs me that in relations to the surcharge, we 412 00:20:58,720 --> 00:21:01,359 Speaker 1: are not assessed as individuals, but as a couple, and 413 00:21:01,440 --> 00:21:04,000 Speaker 1: both of us needs to be covered, not just one 414 00:21:04,040 --> 00:21:06,440 Speaker 1: of us. Ooh, that's the way I understand it. I 415 00:21:06,640 --> 00:21:08,840 Speaker 1: got only have this wrong. Can you tell me? 416 00:21:09,119 --> 00:21:12,679 Speaker 3: I'm afraid I'm afraid Danielle's accountant is one hundred percent 417 00:21:12,680 --> 00:21:15,480 Speaker 3: spot on. So there's a specific rule around the medical 418 00:21:15,560 --> 00:21:20,119 Speaker 3: levy surcharge and essentially the ATO treats couples as a 419 00:21:20,119 --> 00:21:23,680 Speaker 3: family unit in respect of levying the medical levy charge. 420 00:21:23,720 --> 00:21:27,000 Speaker 3: So everyone needs to have the private health cover otherwise 421 00:21:27,119 --> 00:21:29,320 Speaker 3: you basically a hit with the surcharge. 422 00:21:29,359 --> 00:21:32,400 Speaker 1: You can't you can't do you can't partially do it. 423 00:21:32,560 --> 00:21:34,440 Speaker 2: Either you all don't have it or you will habit. 424 00:21:34,600 --> 00:21:35,720 Speaker 2: Is that basically the unswer. 425 00:21:36,119 --> 00:21:40,200 Speaker 3: It's one hundred percent right and the end. She's also 426 00:21:40,200 --> 00:21:43,960 Speaker 3: writing her comment around the additional The increase in the 427 00:21:44,000 --> 00:21:47,760 Speaker 3: threshold for couples was fifteen hundred dollars for one after 428 00:21:47,800 --> 00:21:51,280 Speaker 3: the first child is tiny, so it's a very small threshold. 429 00:21:52,000 --> 00:21:54,359 Speaker 2: Most people don't know that. I imagine sort of thing that's. 430 00:21:54,280 --> 00:21:57,600 Speaker 3: No, it sounds like a hack, but clearly that gap 431 00:21:57,640 --> 00:21:58,520 Speaker 3: has been closed. 432 00:21:59,040 --> 00:22:03,399 Speaker 1: Okay, thank you very much, Danielle. Not a advice, always 433 00:22:03,400 --> 00:22:07,480 Speaker 1: a course information only. Oh right now, next question, Hi, James. 434 00:22:07,840 --> 00:22:10,800 Speaker 1: We had a split home loan for our principal place 435 00:22:10,840 --> 00:22:13,800 Speaker 1: of residence, two year fixed loan for a certain amount 436 00:22:13,880 --> 00:22:16,560 Speaker 1: and another amount variable. It was a condition of being 437 00:22:16,600 --> 00:22:19,439 Speaker 1: able to get this loan with mcquarie. We had one 438 00:22:19,480 --> 00:22:21,399 Speaker 1: year left on the fixed loan and I wanted to 439 00:22:21,440 --> 00:22:23,680 Speaker 1: get out of it so we could have a variable loan. 440 00:22:24,359 --> 00:22:27,760 Speaker 1: Loan documentation warns of significant costs for breaking the fixed 441 00:22:27,760 --> 00:22:30,520 Speaker 1: loan early. I finally decided to contact McCartie to find 442 00:22:30,520 --> 00:22:33,119 Speaker 1: out how much it would cost and calculate if it 443 00:22:33,200 --> 00:22:35,200 Speaker 1: was worth it, and the final cost was dump. 444 00:22:36,040 --> 00:22:38,280 Speaker 2: Are you ready? Actually the answer is zero. 445 00:22:38,760 --> 00:22:42,159 Speaker 1: It's not a complaint. I was more than surprised. And 446 00:22:42,200 --> 00:22:45,879 Speaker 1: given I have just sold an investment property, the offset 447 00:22:45,880 --> 00:22:47,879 Speaker 1: accounts are full and McCary is missing out on a 448 00:22:47,920 --> 00:22:50,080 Speaker 1: lot of interest payments. Did we just get lucky? 449 00:22:50,480 --> 00:22:50,760 Speaker 2: Well? 450 00:22:54,320 --> 00:22:56,840 Speaker 3: I think this is great. First thing, First, if you 451 00:22:57,080 --> 00:23:01,960 Speaker 3: enter into any fixed agreement, you want to be really 452 00:23:02,000 --> 00:23:05,040 Speaker 3: sure about the terms and conditions for exiting that. We've 453 00:23:05,080 --> 00:23:06,959 Speaker 3: all been stung once in our lives. 454 00:23:07,280 --> 00:23:10,040 Speaker 2: I also had got easier, generally broader. 455 00:23:10,000 --> 00:23:12,160 Speaker 3: They have, and I think, look, the big picture here 456 00:23:12,240 --> 00:23:14,280 Speaker 3: is any and I both know mccruarie bank has been 457 00:23:14,400 --> 00:23:18,280 Speaker 3: incredibly strategic with market share and wanting to take market 458 00:23:18,320 --> 00:23:20,879 Speaker 3: share off the other big banks. 459 00:23:20,600 --> 00:23:22,000 Speaker 2: It's crazy against the big four. 460 00:23:22,640 --> 00:23:25,680 Speaker 3: This is just a marketing move in a good way 461 00:23:25,720 --> 00:23:28,040 Speaker 3: and James has benefited from that. So look, I think 462 00:23:28,080 --> 00:23:31,720 Speaker 3: this is a win. Take it. They may have got lucky. Yes, 463 00:23:32,280 --> 00:23:36,240 Speaker 3: But the reality is mccruary's looking for brand advocacy in 464 00:23:36,440 --> 00:23:40,680 Speaker 3: space and here it is definitely perfect example. 465 00:23:40,760 --> 00:23:43,280 Speaker 1: Here it is also was going that come work bank 466 00:23:43,359 --> 00:23:49,800 Speaker 1: mccommune CBE chief is actively openly complaining about Macquarie's well 467 00:23:51,119 --> 00:23:56,000 Speaker 1: distinct status as an investment bank active in standard high 468 00:23:56,000 --> 00:23:59,120 Speaker 1: street banking these days, whereas him and the other four 469 00:23:59,160 --> 00:24:02,159 Speaker 1: banks are traditional banks, and he's kicking like to get 470 00:24:02,240 --> 00:24:05,280 Speaker 1: Macquarie sort of reclassified. But Mcquarie for the moment are 471 00:24:05,320 --> 00:24:07,400 Speaker 1: sort of enjoying the best of both words. There are competitive, 472 00:24:07,440 --> 00:24:10,520 Speaker 1: They're competing on mortgages, they're competing on deposits if the 473 00:24:10,680 --> 00:24:12,560 Speaker 1: damn good deposit rate, So I'm not surprise people are 474 00:24:12,600 --> 00:24:14,879 Speaker 1: flowing into them. Bring on the competition, That's all we 475 00:24:14,920 --> 00:24:17,879 Speaker 1: can say as usual. Okay, last question from Fuson f 476 00:24:17,960 --> 00:24:22,679 Speaker 1: Usu N. When I started my first tax free income 477 00:24:22,720 --> 00:24:26,840 Speaker 1: stream account, my transfer balance cap was one point six million. 478 00:24:27,359 --> 00:24:30,560 Speaker 1: My current available cap space is sixty seven thousand. My 479 00:24:30,680 --> 00:24:33,160 Speaker 1: total income stream account balance has grown to one point 480 00:24:33,240 --> 00:24:35,960 Speaker 1: nine million. This asset growth of one point six to 481 00:24:36,000 --> 00:24:39,880 Speaker 1: one point nine happened inside the income stream account. Okay, 482 00:24:40,119 --> 00:24:44,280 Speaker 1: Now Fuson's question. My current superinuation provider is in the 483 00:24:44,320 --> 00:24:47,320 Speaker 1: process of merging with Aware Super. We kind of guess 484 00:24:47,320 --> 00:24:50,400 Speaker 1: who that is. After my tax free income stream account 485 00:24:50,440 --> 00:24:53,639 Speaker 1: is transferred into Aware Super, how much will I have 486 00:24:53,720 --> 00:24:56,000 Speaker 1: in the new tax three pension account one point six 487 00:24:56,119 --> 00:24:58,919 Speaker 1: or one point nine I imagine there's a standard answer 488 00:24:58,960 --> 00:25:01,680 Speaker 1: to that, Jackie, do you know well. 489 00:25:01,400 --> 00:25:05,640 Speaker 3: The answer is yes, it should transfer. But the question remains, 490 00:25:05,880 --> 00:25:09,880 Speaker 3: what is the value at the transfer date? Now? And 491 00:25:09,960 --> 00:25:13,200 Speaker 3: I'm conscious of the way the market has been impacted, 492 00:25:13,240 --> 00:25:15,560 Speaker 3: certainly in the last couple of days, so that's going 493 00:25:15,600 --> 00:25:19,120 Speaker 3: to be quite significant impact to you for fusion, But 494 00:25:19,160 --> 00:25:21,480 Speaker 3: the reality is that the account value will transfer that 495 00:25:21,520 --> 00:25:24,199 Speaker 3: so it should be at one point nine million based 496 00:25:24,240 --> 00:25:26,959 Speaker 3: on the information that Fuston's provided us with today. 497 00:25:27,080 --> 00:25:28,960 Speaker 2: Okay, okay, that's all we can do. 498 00:25:29,000 --> 00:25:31,439 Speaker 1: That's information only, but I think it's a clear answer, 499 00:25:31,560 --> 00:25:34,960 Speaker 1: and that's what everybody loves. All right, Very good, very good, 500 00:25:34,960 --> 00:25:37,639 Speaker 1: Thank you very much, Jackie Clark. Great to have you 501 00:25:37,680 --> 00:25:39,399 Speaker 1: on board. We know all of your book How to 502 00:25:39,560 --> 00:25:42,600 Speaker 1: Stop Worrying about Money, Jackie, Costs and Advisor to Family Offices, 503 00:25:42,640 --> 00:25:47,280 Speaker 1: among other things, and your subsec your presios CFO. Thank you, 504 00:25:47,359 --> 00:25:48,360 Speaker 1: very much Jackie. 505 00:25:48,400 --> 00:25:50,480 Speaker 3: Thanks James. Has been lovely to be here today. 506 00:25:50,640 --> 00:25:52,439 Speaker 1: Great to have you on the show as always, and 507 00:25:52,480 --> 00:25:54,880 Speaker 1: folks still keep the emails coming. The money puzzle at 508 00:25:54,880 --> 00:25:57,400 Speaker 1: the Australian dot com dot you let's have some reviews 509 00:25:57,440 --> 00:25:59,760 Speaker 1: on the Apple iPod. Love to see some because the 510 00:25:59,760 --> 00:26:01,800 Speaker 1: other ones are very old and we would like to 511 00:26:01,840 --> 00:26:04,240 Speaker 1: have some fresh ones. Today's show was produced by Leah 512 00:26:04,240 --> 00:26:04,840 Speaker 1: Samon Glue. 513 00:26:05,160 --> 00:26:05,760 Speaker 2: Talk to you soon.