1 00:00:06,600 --> 00:00:09,920 Speaker 1: Hello, one, Welcome to The Australian's Money Puzzle podcast. I'm 2 00:00:10,000 --> 00:00:14,240 Speaker 1: James Kirkby, the World's editor at The Australian. Welcome aboard everybody. 3 00:00:21,960 --> 00:00:24,400 Speaker 1: And the last time that I had Sarah Petty on 4 00:00:24,480 --> 00:00:28,160 Speaker 1: the show, she's the property reporter on the Great Response 5 00:00:28,240 --> 00:00:31,639 Speaker 1: and she gave a particular perspective of jen Z in 6 00:00:31,680 --> 00:00:34,159 Speaker 1: the property market. And she's back today and we are 7 00:00:34,200 --> 00:00:37,080 Speaker 1: going to talk about some red hot issues in property 8 00:00:37,120 --> 00:00:40,640 Speaker 1: for property investors, for anyone in the world of property. 9 00:00:40,720 --> 00:00:46,080 Speaker 1: Just now, rentals still rising, insurance going through the roof. 10 00:00:46,920 --> 00:00:49,600 Speaker 1: We're going to look at a popular but I have 11 00:00:49,680 --> 00:00:53,720 Speaker 1: to tell you debatable concept that you see reported all 12 00:00:53,760 --> 00:00:57,680 Speaker 1: the time where they say you can buy cheaper than 13 00:00:57,760 --> 00:01:00,720 Speaker 1: rent in certain suburbs, and I see that's starting to 14 00:01:00,760 --> 00:01:03,200 Speaker 1: happen again now. I see those stories coming through and 15 00:01:03,240 --> 00:01:05,800 Speaker 1: I just want to ask Sarah about the reality of 16 00:01:05,840 --> 00:01:09,320 Speaker 1: that and a few other things, including the rather spectacular 17 00:01:10,040 --> 00:01:14,280 Speaker 1: story she had recently where she spawned an apartment that 18 00:01:14,600 --> 00:01:18,160 Speaker 1: was for sale in Melbourne Metropolitan Melbourne for ninety nine 19 00:01:18,160 --> 00:01:21,920 Speaker 1: thousand dollars. H story behind that, one story behind all 20 00:01:21,920 --> 00:01:24,399 Speaker 1: these stories, isn't there? How are you Sarah I'm good. 21 00:01:24,480 --> 00:01:26,280 Speaker 2: How are you, James good good. 22 00:01:26,040 --> 00:01:28,400 Speaker 1: Thanks for coming on the show. Thank you great to 23 00:01:28,440 --> 00:01:32,280 Speaker 1: have me on again. I saw where you had something recently, rents, 24 00:01:32,640 --> 00:01:35,520 Speaker 1: we know are climbing all the time, and the vacancy 25 00:01:35,520 --> 00:01:38,000 Speaker 1: grates still very very tight, and I don't see any 26 00:01:38,000 --> 00:01:41,360 Speaker 1: great changes to that. But when we looked at the 27 00:01:41,440 --> 00:01:44,440 Speaker 1: recent inflation figures and the inflation figures, maybe you recall, 28 00:01:44,520 --> 00:01:47,120 Speaker 1: folks were a surprise, the negative surprise. It's one of 29 00:01:47,160 --> 00:01:49,360 Speaker 1: the reasons that they're talking about staying up. The gloff 30 00:01:49,400 --> 00:01:53,560 Speaker 1: going higher was that the four percent annualized circulation was 31 00:01:53,640 --> 00:01:57,280 Speaker 1: driven by two things in particular. One was rentals, both 32 00:01:57,320 --> 00:02:01,559 Speaker 1: related to properly. One was rentals spental costs. Was insurance 33 00:02:02,320 --> 00:02:07,720 Speaker 1: and house insurance has really taken off on a trajectory 34 00:02:07,760 --> 00:02:11,600 Speaker 1: that is a slightly disconcerting imagined for anybody. 35 00:02:11,960 --> 00:02:16,320 Speaker 2: Well, I can say that in Victoria, building insurance has 36 00:02:16,360 --> 00:02:19,760 Speaker 2: been increased, so domestic building insurance is going to go 37 00:02:19,919 --> 00:02:26,000 Speaker 2: up another sixty five percent. Essentially, the building insurance already 38 00:02:26,040 --> 00:02:29,280 Speaker 2: went up eleven months ago by about forty three percent, 39 00:02:29,440 --> 00:02:31,800 Speaker 2: So you can imagine that this is going to have 40 00:02:31,800 --> 00:02:34,480 Speaker 2: a pretty big effect on those that are wanting to 41 00:02:34,639 --> 00:02:35,520 Speaker 2: build their own hire. 42 00:02:35,560 --> 00:02:37,440 Speaker 1: Can you repeat the numbers? What happened last year, what's 43 00:02:37,440 --> 00:02:38,280 Speaker 1: going to happen this year? 44 00:02:38,320 --> 00:02:40,920 Speaker 2: So in September last year there was already an increase 45 00:02:41,240 --> 00:02:44,320 Speaker 2: to domestic building insurance by forty three percent, and then 46 00:02:44,360 --> 00:02:48,480 Speaker 2: this year, about a month ago, insurance has been increased 47 00:02:48,480 --> 00:02:49,920 Speaker 2: by another sixty five percent. 48 00:02:50,080 --> 00:02:55,280 Speaker 1: So that's extraordinary. Exactly, it's multiple of artentulation is I 49 00:02:55,320 --> 00:02:57,400 Speaker 1: know this is an issue across the nation, and I 50 00:02:57,440 --> 00:03:01,079 Speaker 1: know that from the national inflation figures, So what's the explanation. 51 00:03:01,680 --> 00:03:04,040 Speaker 2: Essentially, I think they're trying to crack down on builders. 52 00:03:04,080 --> 00:03:07,000 Speaker 2: I mean, there is a lot of talk about there 53 00:03:07,080 --> 00:03:10,160 Speaker 2: being some dodgy building practices out there, so that's the 54 00:03:10,280 --> 00:03:15,920 Speaker 2: Victorian Managed Insurance Authorities position. But in terms ofercussions, I 55 00:03:15,919 --> 00:03:18,160 Speaker 2: think is that those that are looking to build their 56 00:03:18,200 --> 00:03:20,919 Speaker 2: own home builders are likely to pass on those extra 57 00:03:21,000 --> 00:03:21,960 Speaker 2: costs to them. 58 00:03:22,120 --> 00:03:25,400 Speaker 1: So they're cracked down on dodgy builders by charging all 59 00:03:25,480 --> 00:03:30,359 Speaker 1: builders higher insurance. Yes, that's terrible. I didn't know about that. 60 00:03:30,840 --> 00:03:33,320 Speaker 1: It hasn't come up before. I did notice that the 61 00:03:33,360 --> 00:03:36,240 Speaker 1: insurance figures were just completely out of line. This is 62 00:03:36,240 --> 00:03:39,760 Speaker 1: an outgoing problem across the investment system. Really in an 63 00:03:39,920 --> 00:03:43,920 Speaker 1: entirely different world. In financial planning and financial advice, for instance, 64 00:03:43,960 --> 00:03:47,840 Speaker 1: they have a new scheme of last resort. It's calle 65 00:03:47,920 --> 00:03:51,480 Speaker 1: where the company that you've got advice from boz under 66 00:03:52,080 --> 00:03:55,200 Speaker 1: you can now get to cover on that. Basically it's 67 00:03:55,200 --> 00:03:58,080 Speaker 1: a form of insurance. But it's the same problem. They're 68 00:03:58,120 --> 00:04:01,400 Speaker 1: charging the existing advisors for the sins of your life 69 00:04:01,440 --> 00:04:04,680 Speaker 1: of other advisors, and here they are charging existing builders 70 00:04:04,400 --> 00:04:07,760 Speaker 1: for sort of the doings of other bad builders. Okay, 71 00:04:07,840 --> 00:04:08,240 Speaker 1: I see. 72 00:04:08,280 --> 00:04:10,840 Speaker 2: I will also add that they're also trying to crack 73 00:04:10,920 --> 00:04:14,680 Speaker 2: down on there's obviously been an insolvencies for the Davis 74 00:04:15,160 --> 00:04:18,599 Speaker 2: being one of them, So yeah, insolvencies, inflation and skilled 75 00:04:18,600 --> 00:04:22,000 Speaker 2: worker shortgages are also another reason why the premiums have increased. 76 00:04:22,760 --> 00:04:25,320 Speaker 2: So basically to ensure home use are protected, that's what 77 00:04:25,360 --> 00:04:25,800 Speaker 2: they say. 78 00:04:26,120 --> 00:04:30,599 Speaker 1: So but they protect they may get anything dearer for them, they're. 79 00:04:30,440 --> 00:04:31,840 Speaker 2: Going to be the ones that pay probably. 80 00:04:33,880 --> 00:04:37,159 Speaker 1: Gee, yeah, that's so difficult. And one of the things 81 00:04:37,560 --> 00:04:40,599 Speaker 1: about that in terms of we also mentioned on the 82 00:04:40,640 --> 00:04:42,560 Speaker 1: show and a couple of people got very hot onto 83 00:04:42,600 --> 00:04:45,920 Speaker 1: the collar in recent times about lenders mortgage insurance. It's 84 00:04:45,920 --> 00:04:48,359 Speaker 1: a similar thing that everybody must pay. But you know, 85 00:04:48,400 --> 00:04:53,160 Speaker 1: the figures suggest that in fact, the defaults are tiny 86 00:04:53,600 --> 00:04:56,000 Speaker 1: on this even at the moment. But just to cover 87 00:04:56,080 --> 00:04:58,159 Speaker 1: off on that about the builders, so there is a 88 00:04:58,240 --> 00:05:01,600 Speaker 1: number of builders going under I I know that insolvencies 89 00:05:01,640 --> 00:05:04,520 Speaker 1: are at a record. I know that bankruptcies are at 90 00:05:04,560 --> 00:05:09,640 Speaker 1: a record. There are the highest since Assets started collecting figures. 91 00:05:09,839 --> 00:05:12,120 Speaker 1: And I was actually on really this morning we were 92 00:05:12,160 --> 00:05:15,760 Speaker 1: talking about how also there's a death hot line in 93 00:05:15,800 --> 00:05:18,320 Speaker 1: Sydney and the managers of that death hotline said that 94 00:05:18,400 --> 00:05:23,200 Speaker 1: they have had more complaints and concern calls this year 95 00:05:23,320 --> 00:05:27,240 Speaker 1: already than they had all of last year. So for 96 00:05:27,800 --> 00:05:31,279 Speaker 1: first time buyers, have the only sense of that segment 97 00:05:31,320 --> 00:05:33,840 Speaker 1: of people who go to own to build their own 98 00:05:33,880 --> 00:05:35,720 Speaker 1: house because the're traditionally seen as some sort of a 99 00:05:35,800 --> 00:05:36,520 Speaker 1: cheaper way to do. 100 00:05:37,600 --> 00:05:39,960 Speaker 2: I mean, from my understanding, there has been you know, 101 00:05:40,240 --> 00:05:43,880 Speaker 2: enticing offers in order for people to buy that sort 102 00:05:43,880 --> 00:05:47,200 Speaker 2: of pizzlind and then build their own home. But in 103 00:05:47,279 --> 00:05:54,320 Speaker 2: terms of increased construction costs, increased labor shortages, that isn't 104 00:05:54,640 --> 00:05:57,920 Speaker 2: at all an enticing option, especially for young buyers such 105 00:05:57,920 --> 00:05:59,039 Speaker 2: as myself. 106 00:06:00,160 --> 00:06:02,479 Speaker 1: Or it used to be. So people feel it's so 107 00:06:02,560 --> 00:06:03,560 Speaker 1: sort of written. 108 00:06:03,240 --> 00:06:07,400 Speaker 2: With risk with written with risky absolutely and even just 109 00:06:07,640 --> 00:06:10,040 Speaker 2: enjoying that your is built you know, to the best 110 00:06:10,080 --> 00:06:10,880 Speaker 2: standard as well. 111 00:06:10,960 --> 00:06:14,760 Speaker 1: So yes, I can imagine, Yeah, I see. Okay, So 112 00:06:14,800 --> 00:06:16,440 Speaker 1: that was that one, folks. I wanted to just put 113 00:06:16,440 --> 00:06:18,920 Speaker 1: that on the table because I noticed the insurance popping out, 114 00:06:18,960 --> 00:06:21,440 Speaker 1: if you like, on the inflation numbers. And of course 115 00:06:21,560 --> 00:06:24,320 Speaker 1: turns out well, the property market is at the heart 116 00:06:24,320 --> 00:06:28,080 Speaker 1: of it built on rentals and insurance. Now on another 117 00:06:28,240 --> 00:06:31,200 Speaker 1: issue and sort of story that we will regularly and 118 00:06:31,600 --> 00:06:35,800 Speaker 1: maya koppa And I've never actually done this story, but 119 00:06:36,320 --> 00:06:38,920 Speaker 1: the Australian run stories like this, there are sun run stories. 120 00:06:38,960 --> 00:06:41,360 Speaker 1: Everyone runs stories like this. It's a bit eye catcher 121 00:06:42,560 --> 00:06:45,719 Speaker 1: where people say or reporter says, hey, look, you know 122 00:06:46,960 --> 00:06:49,240 Speaker 1: some RESEARCHU comes out and says, hey, af there's six 123 00:06:49,279 --> 00:06:53,440 Speaker 1: suburbs in Brisbane, or there's twelve suburbs in Melbourne where 124 00:06:53,520 --> 00:06:58,080 Speaker 1: you it's cheaper to buy than rent. And what really 125 00:06:58,120 --> 00:07:03,200 Speaker 1: cut my eye recently was inner City Carleton in the 126 00:07:03,240 --> 00:07:08,680 Speaker 1: middle of Melbourne. Attractive suburb by anyone's estimation, is on 127 00:07:08,720 --> 00:07:11,800 Speaker 1: this list. But I just want to ask you, have 128 00:07:11,880 --> 00:07:14,200 Speaker 1: you ever looked at it and do you find those 129 00:07:14,720 --> 00:07:16,280 Speaker 1: Is it fair actually to put that in front of 130 00:07:16,320 --> 00:07:18,120 Speaker 1: people and get them more excited. I mean, can we 131 00:07:18,160 --> 00:07:19,040 Speaker 1: tell this the whole story. 132 00:07:21,440 --> 00:07:25,600 Speaker 2: I recently did a story on this. I mean, look, yeah, 133 00:07:25,760 --> 00:07:27,400 Speaker 2: I mean, it's always good to know your options, and 134 00:07:27,440 --> 00:07:30,480 Speaker 2: I guess I think everybody is, especially first time buyers, 135 00:07:30,480 --> 00:07:32,960 Speaker 2: are looking for any positivity that they can find in 136 00:07:33,000 --> 00:07:35,360 Speaker 2: the market at the moment. But I recently wrote a 137 00:07:35,400 --> 00:07:38,600 Speaker 2: story so based on some data that we've received, and yeah, 138 00:07:38,640 --> 00:07:41,200 Speaker 2: Carlton was one of them. Something important to note, and 139 00:07:41,240 --> 00:07:43,920 Speaker 2: there are a couple of disclaims. This is when we 140 00:07:44,040 --> 00:07:46,560 Speaker 2: look at data like this, you've got to think about 141 00:07:46,560 --> 00:07:50,440 Speaker 2: the composition of these suburbs. So places like Carlton. Another 142 00:07:50,480 --> 00:07:52,240 Speaker 2: couple that I had on the list where it would 143 00:07:52,240 --> 00:07:55,840 Speaker 2: be cheaper to buy them would be trave and Core 144 00:07:56,040 --> 00:08:00,080 Speaker 2: in Olburn. So yeah, obviously come speaking from a Victoria centricity. 145 00:08:01,320 --> 00:08:03,160 Speaker 2: These are all places that are very close to the 146 00:08:03,200 --> 00:08:06,280 Speaker 2: city and have a large amount of units. And when 147 00:08:06,320 --> 00:08:08,520 Speaker 2: you have a large number of units, that drags the 148 00:08:08,640 --> 00:08:12,320 Speaker 2: median dwellings down. Yes, so some of the datas yes, 149 00:08:12,560 --> 00:08:15,640 Speaker 2: if a buyer is put down a twenty percent deposit, 150 00:08:16,280 --> 00:08:19,120 Speaker 2: these were some of the suburbs that would cost less 151 00:08:19,160 --> 00:08:22,040 Speaker 2: to essentially serve as a mortgage rather than rent. 152 00:08:22,200 --> 00:08:24,040 Speaker 1: Okay, have you got a list of them there? Yeah, 153 00:08:24,040 --> 00:08:26,400 Speaker 1: I've got a few. Yes, your four or five favorites. 154 00:08:26,480 --> 00:08:30,440 Speaker 2: Okay, again this is a Victoria, but Abbotsford, Chockland, North 155 00:08:30,520 --> 00:08:33,360 Speaker 2: Melbourne trapping for notting Hill and box Hill. 156 00:08:33,800 --> 00:08:36,400 Speaker 1: Okay, and this would be mirrored in other cities around 157 00:08:36,440 --> 00:08:38,319 Speaker 1: the country. But the part I've got to drive that 158 00:08:38,480 --> 00:08:41,960 Speaker 1: here is so the thing is when we see these reports, 159 00:08:41,960 --> 00:08:45,280 Speaker 1: what they say is the interest you would pay on 160 00:08:45,320 --> 00:08:48,360 Speaker 1: your mortgage is less than the rent you would pay 161 00:08:48,480 --> 00:08:51,679 Speaker 1: to the property owner. And that is true as far 162 00:08:51,720 --> 00:08:53,720 Speaker 1: as it goes. It is true. But the thing is, 163 00:08:53,760 --> 00:08:58,000 Speaker 1: when you own a place, develop more cost than interest. 164 00:08:58,559 --> 00:09:00,199 Speaker 1: Do people fully understand that? Think? 165 00:09:01,800 --> 00:09:06,000 Speaker 2: I mean, it depends on you. There's a lot of 166 00:09:06,080 --> 00:09:08,960 Speaker 2: costs and there is quite a large part to intrigue 167 00:09:08,960 --> 00:09:11,680 Speaker 2: in terms of actually getting into the market. So and 168 00:09:11,760 --> 00:09:15,840 Speaker 2: depending on what government schemes you're eligible for. But yeah, 169 00:09:15,880 --> 00:09:17,440 Speaker 2: it's essentially and. 170 00:09:17,559 --> 00:09:22,640 Speaker 3: Why it is I would say to people listening when 171 00:09:22,679 --> 00:09:25,640 Speaker 3: you see those reports, take it on board, but just 172 00:09:25,640 --> 00:09:28,280 Speaker 3: don't be under the oppression that you can match this 173 00:09:28,559 --> 00:09:31,120 Speaker 3: very simply the mortgage repayments against the rent payments. 174 00:09:31,120 --> 00:09:35,000 Speaker 1: You can't unfortunately, because there are running costs and I'm 175 00:09:35,000 --> 00:09:38,360 Speaker 1: going to pick a number on the average apartment's will 176 00:09:38,360 --> 00:09:41,120 Speaker 1: be ten to twenty grand a year of just costs 177 00:09:41,200 --> 00:09:45,000 Speaker 1: this body corporate costs, there's insurance costs LMI, then there's 178 00:09:45,040 --> 00:09:48,719 Speaker 1: mortgage insurance, all these various things that will come up. 179 00:09:49,520 --> 00:09:52,280 Speaker 1: And I suppose the other thing about that. In a way, 180 00:09:52,320 --> 00:09:55,760 Speaker 1: it's great to see that you can't do that, and 181 00:09:55,840 --> 00:09:58,120 Speaker 1: that there are places you can buy that cost list 182 00:09:58,160 --> 00:10:01,960 Speaker 1: and they do to rent. But what the real situation 183 00:10:02,280 --> 00:10:05,160 Speaker 1: here is that the rent is so high. Yes, the 184 00:10:05,200 --> 00:10:06,200 Speaker 1: rents are so crazy. 185 00:10:06,320 --> 00:10:08,880 Speaker 2: Yes, I think on average rents across the nation have 186 00:10:09,080 --> 00:10:11,400 Speaker 2: gone up about ten percent in the last twelve months. 187 00:10:11,440 --> 00:10:14,640 Speaker 2: So yes, that's true. And yeah, like what you said, 188 00:10:15,320 --> 00:10:18,440 Speaker 2: if due to Signify unit, you do have all these 189 00:10:18,520 --> 00:10:22,080 Speaker 2: extra costs, like what you call things, Yeah, everything, Yes, 190 00:10:22,160 --> 00:10:25,720 Speaker 2: rents of skyrocketed, so that's the main point. You know, 191 00:10:25,800 --> 00:10:28,920 Speaker 2: some people are paying fifty dollars extra a week that compared. 192 00:10:28,640 --> 00:10:31,320 Speaker 1: To two months ago. Yes, I asked you. The last 193 00:10:31,320 --> 00:10:34,160 Speaker 1: time you were on, we were talking about the unreported 194 00:10:35,280 --> 00:10:40,760 Speaker 1: the side of the property market where people bid so 195 00:10:40,800 --> 00:10:43,160 Speaker 1: they go win and the person says, hey, this rental 196 00:10:43,320 --> 00:10:45,160 Speaker 1: is so much per week, and the person chupatches them 197 00:10:45,160 --> 00:10:46,560 Speaker 1: in the corridor and say, that's what if I toss 198 00:10:46,600 --> 00:10:48,920 Speaker 1: an extra ten twenty dollars at it per week? And 199 00:10:49,080 --> 00:10:51,079 Speaker 1: does that happen? And does does it work? 200 00:10:51,400 --> 00:10:54,679 Speaker 2: Yes, it happens all the time. An agent can't say, 201 00:10:54,920 --> 00:10:57,280 Speaker 2: you know, you should add an extra ten dollars onto 202 00:10:57,320 --> 00:10:59,480 Speaker 2: your offer, and they kind of advise it that. But 203 00:11:00,320 --> 00:11:03,600 Speaker 2: renters are more than willing to, more than allowed to 204 00:11:03,880 --> 00:11:06,240 Speaker 2: add an extra ten dollars twenty dollars your week to 205 00:11:06,240 --> 00:11:09,680 Speaker 2: get ahead of the pack. But in the area that 206 00:11:09,880 --> 00:11:12,559 Speaker 2: in the first housing statement in September last year, they 207 00:11:12,600 --> 00:11:14,880 Speaker 2: are trying to outraw all types of biding. 208 00:11:15,200 --> 00:11:17,200 Speaker 1: At the moment, you can't solicit it to The agent 209 00:11:17,280 --> 00:11:18,800 Speaker 1: can't say, hey, you want to pay more, but if 210 00:11:18,840 --> 00:11:25,600 Speaker 1: you volunteer, you can volunteer. Fine. I see, okay, very good, 211 00:11:26,000 --> 00:11:28,160 Speaker 1: it's really interesting. Well take short breaks back in a moment. 212 00:11:38,520 --> 00:11:41,520 Speaker 1: Hello and welcome back to The Australian's Money Puzzle podcast. 213 00:11:41,559 --> 00:11:49,160 Speaker 1: I'm James Kirby, the wether editor at The Australian. It's Tuesday. 214 00:11:49,200 --> 00:11:52,560 Speaker 1: I'm talking properly property investment. And my guest today is 215 00:11:52,600 --> 00:11:55,680 Speaker 1: Sarah Petty, property reporter from the hars Son who is 216 00:11:55,800 --> 00:11:59,199 Speaker 1: out there folks at the auctions on the street, talking 217 00:11:59,240 --> 00:12:02,920 Speaker 1: to the agents, the buyer's advocates, the buyers, which I 218 00:12:02,960 --> 00:12:05,000 Speaker 1: find the most interesting aspect of a lot of the 219 00:12:05,000 --> 00:12:07,120 Speaker 1: stories she does. She's talking to the people who are 220 00:12:07,160 --> 00:12:09,920 Speaker 1: actually trying to investor trying to buy at the moment, 221 00:12:09,960 --> 00:12:12,080 Speaker 1: so she's very good notion of what it's like. Sara, 222 00:12:12,120 --> 00:12:15,480 Speaker 1: if I said to you, I'm in a position to 223 00:12:15,480 --> 00:12:19,000 Speaker 1: buy my first property anywhere in Australia, any type, and 224 00:12:19,040 --> 00:12:20,720 Speaker 1: I said to you, would you like to advise me 225 00:12:21,040 --> 00:12:23,720 Speaker 1: the nature of that property? What would you say? What 226 00:12:23,760 --> 00:12:24,360 Speaker 1: would you say? 227 00:12:25,280 --> 00:12:28,000 Speaker 2: Okay, well, if you're just buying your first property, what 228 00:12:28,040 --> 00:12:31,120 Speaker 2: I would say is there's grunny flats, you know, there's 229 00:12:31,160 --> 00:12:35,960 Speaker 2: single level dwellings. They're really good bye. 230 00:12:36,080 --> 00:12:39,120 Speaker 1: That's really interesting. You mentioned that Stuart Williams was on 231 00:12:39,160 --> 00:12:42,960 Speaker 1: the show last maybe last week and he said the 232 00:12:43,000 --> 00:12:46,720 Speaker 1: same thing, and he had a villa units. Villa units 233 00:12:46,800 --> 00:12:50,840 Speaker 1: unfashionable but perhaps lucrative options. 234 00:12:50,360 --> 00:12:52,800 Speaker 2: Oh very much so, and actually fashionable I would say 235 00:12:52,840 --> 00:12:56,120 Speaker 2: at the moment, especially for first time buyers. I've seen 236 00:12:56,160 --> 00:12:59,880 Speaker 2: it options then going for one hundred thousand dollars a price. 237 00:13:00,080 --> 00:13:03,480 Speaker 2: So they're just a smaller house essentially, and some of 238 00:13:03,480 --> 00:13:04,520 Speaker 2: them even have a backyard. 239 00:13:04,559 --> 00:13:07,000 Speaker 1: And they're in every city. Every city in Australia is 240 00:13:07,000 --> 00:13:08,480 Speaker 1: full of them, as you know, folks that were built 241 00:13:08,480 --> 00:13:10,800 Speaker 1: from the sixties to be he's talking about, you know, 242 00:13:10,800 --> 00:13:13,240 Speaker 1: the suburban street there are six billi units, three on 243 00:13:13,240 --> 00:13:15,319 Speaker 1: one side, three and the other roll down the middle 244 00:13:15,360 --> 00:13:18,560 Speaker 1: sixpence front. But Stewart was making body, why do you 245 00:13:18,600 --> 00:13:21,520 Speaker 1: buy one? Get you literally get land value and you 246 00:13:21,559 --> 00:13:23,679 Speaker 1: get a guard and you get a garage. You to 247 00:13:23,720 --> 00:13:26,120 Speaker 1: get a house? What's wrong with them? They're not cool? 248 00:13:27,559 --> 00:13:31,760 Speaker 2: They're not cool, I guess, but I think they're pretty 249 00:13:31,800 --> 00:13:35,120 Speaker 2: cool as opposed to getting in a unit. They're actually 250 00:13:35,559 --> 00:13:37,079 Speaker 2: pretty cool today. 251 00:13:37,040 --> 00:13:40,800 Speaker 1: Yeah, what's funny? I am I surprising. I lived in 252 00:13:40,840 --> 00:13:43,000 Speaker 1: one for a year and a half, just a year 253 00:13:43,040 --> 00:13:46,760 Speaker 1: and a half ago, because we built a house on 254 00:13:46,840 --> 00:13:51,800 Speaker 1: the street and we lived on the Luckily enough, we 255 00:13:51,800 --> 00:13:53,880 Speaker 1: were rent on the street that we're building the house 256 00:13:53,920 --> 00:13:55,720 Speaker 1: on and it ended up in there for a year 257 00:13:55,720 --> 00:13:59,280 Speaker 1: and a half during COVID develop mine. But it was 258 00:13:59,400 --> 00:14:01,679 Speaker 1: very interesting to be I had never been in a villa, 259 00:14:01,800 --> 00:14:07,000 Speaker 1: unit four, and they were so trouble free, first of all, 260 00:14:07,880 --> 00:14:11,840 Speaker 1: and the other people there was only six in the block, 261 00:14:11,880 --> 00:14:17,040 Speaker 1: and it was all very or terbably. Everyone was well behaved, 262 00:14:17,080 --> 00:14:20,360 Speaker 1: everyone was very interested in being it nice. It wasn't 263 00:14:20,400 --> 00:14:24,600 Speaker 1: particularly good, it wasn't particularly bad, but it did strike me, gosh, 264 00:14:24,640 --> 00:14:27,840 Speaker 1: a couple moved in next door, a couple with a baby, 265 00:14:27,840 --> 00:14:31,360 Speaker 1: and it's drumthing like, yeah, absolutely everything a little back guard, 266 00:14:31,880 --> 00:14:34,440 Speaker 1: front garden tends to be common. Back garden tends to 267 00:14:34,480 --> 00:14:37,440 Speaker 1: be your own. But you get a lot for your bank, 268 00:14:37,480 --> 00:14:40,640 Speaker 1: for your book, and they were keenly prized, I thought, 269 00:14:41,000 --> 00:14:43,920 Speaker 1: compared to apartments in townhouses. Very interesting. Okay, I love 270 00:14:43,920 --> 00:14:47,520 Speaker 1: your answer. Now tell me while we have you in 271 00:14:47,560 --> 00:14:52,120 Speaker 1: the studio about your recent story where you found an 272 00:14:52,160 --> 00:14:55,960 Speaker 1: apartment in Melbourne Metropolitan Melbourne and it's sold sod for 273 00:14:56,160 --> 00:15:02,440 Speaker 1: ninety nine thousand dollars. An everyone said, what was the 274 00:15:02,440 --> 00:15:04,720 Speaker 1: issue with that apartment? What was the issue and what 275 00:15:04,880 --> 00:15:05,400 Speaker 1: was the story? 276 00:15:06,400 --> 00:15:10,200 Speaker 2: Well, obviously there's a little asterix next to this sale, 277 00:15:10,360 --> 00:15:14,160 Speaker 2: but yes, essentially, an apartment in Brankstein sold for ninety 278 00:15:14,240 --> 00:15:16,760 Speaker 2: nine thousand dollars and some in this building have actually 279 00:15:16,800 --> 00:15:20,560 Speaker 2: sold even less seventy thousand dollars. So it's formerly called 280 00:15:20,600 --> 00:15:23,560 Speaker 2: the Ambassador Hotel, which was a ritzy wedding venue back 281 00:15:23,560 --> 00:15:27,440 Speaker 2: in the eighties and nineties, but then later became a 282 00:15:27,440 --> 00:15:31,480 Speaker 2: bit of a hub for vandalism, anfi social behavior, a 283 00:15:31,480 --> 00:15:37,240 Speaker 2: couple of incidents, drug foot incidents. Paramedics apparently wouldn't go 284 00:15:37,360 --> 00:15:42,320 Speaker 2: unless they were assisted by police. So, however, the agent 285 00:15:42,360 --> 00:15:45,720 Speaker 2: that I spoke to said that it has since cleaned 286 00:15:45,800 --> 00:15:48,600 Speaker 2: up a lot. Another caveat is that there is a 287 00:15:48,640 --> 00:15:52,200 Speaker 2: bit an overlay. We can't technically make one of those 288 00:15:52,360 --> 00:15:56,640 Speaker 2: properties your principal place of reticidence. However, the agent said 289 00:15:56,640 --> 00:15:58,520 Speaker 2: that that was ridiculous and it was a lot of such 290 00:15:58,520 --> 00:16:02,680 Speaker 2: a thing and lots of people. We're living there ten years, 291 00:16:02,800 --> 00:16:07,040 Speaker 2: so yes, it does have a bit of a troubled past. However, 292 00:16:07,280 --> 00:16:10,320 Speaker 2: the latest one that sold was actually to an older gentleman, 293 00:16:10,480 --> 00:16:13,760 Speaker 2: and yeah, and he said that they're a great investment 294 00:16:13,760 --> 00:16:15,880 Speaker 2: and apparently steps from the beach as well, So. 295 00:16:16,280 --> 00:16:19,120 Speaker 1: I know I cycled past it sometimes. Yes, it's on 296 00:16:19,160 --> 00:16:21,680 Speaker 1: the main road, but the point of focus is not 297 00:16:21,760 --> 00:16:25,040 Speaker 1: so much in particular. We're released because we don't think 298 00:16:25,040 --> 00:16:28,680 Speaker 1: it all rush to it but it's a market and 299 00:16:28,800 --> 00:16:31,840 Speaker 1: people will overpay and under and pay. And I think 300 00:16:31,840 --> 00:16:34,560 Speaker 1: if there's a theme on the show today from Sarah, 301 00:16:34,760 --> 00:16:37,680 Speaker 1: it's that if you find that property that in some 302 00:16:37,720 --> 00:16:41,040 Speaker 1: way doesn't conventionally fit everybody everyone else wants, then you 303 00:16:41,160 --> 00:16:43,720 Speaker 1: may actually get value. So for instance, on the broad 304 00:16:44,440 --> 00:16:47,880 Speaker 1: Overall team, everyone's running around looking for the they want 305 00:16:47,880 --> 00:16:50,160 Speaker 1: the pretty house on the briny street, or they want 306 00:16:50,160 --> 00:16:52,240 Speaker 1: the apartner with the view or whatever. And there are 307 00:16:52,280 --> 00:16:55,640 Speaker 1: these villa units in every suburb in Australia and they 308 00:16:55,680 --> 00:16:59,120 Speaker 1: have land value which every investor should know about, and 309 00:16:59,200 --> 00:17:02,440 Speaker 1: they they are seen from several guests on our show. 310 00:17:02,920 --> 00:17:05,320 Speaker 1: It's two in a row. Now, that's great value at 311 00:17:05,359 --> 00:17:07,040 Speaker 1: the moment. It keeps that in mind. And the other 312 00:17:07,080 --> 00:17:09,200 Speaker 1: thing is, obviously if you aren't prepared to take the risk. 313 00:17:10,080 --> 00:17:12,480 Speaker 1: Every property is different and it's not like shares. All 314 00:17:12,520 --> 00:17:14,919 Speaker 1: Calmonic Bank shares the same, but not on property that 315 00:17:15,000 --> 00:17:17,280 Speaker 1: investments aren't the same. I thought it was amazing that 316 00:17:17,359 --> 00:17:19,880 Speaker 1: someone don't actually bought them the property for ninety nine 317 00:17:19,880 --> 00:17:25,080 Speaker 1: thousand box sock and barrel, Metropolitan Melbourne. How wrong can 318 00:17:25,119 --> 00:17:25,359 Speaker 1: you go? 319 00:17:25,600 --> 00:17:27,359 Speaker 2: You can't go wrong, And you even said you don't 320 00:17:27,359 --> 00:17:28,719 Speaker 2: even need to put them on the market. I mean 321 00:17:28,720 --> 00:17:31,840 Speaker 2: you can imagine why there's a waiting list for people 322 00:17:31,840 --> 00:17:32,880 Speaker 2: trying to get into this block. 323 00:17:32,960 --> 00:17:41,399 Speaker 1: Now there you good in this market. It's fascinating, absolutely fascinating. Okay, 324 00:17:41,400 --> 00:17:55,119 Speaker 1: we'll be back and along a couple of questions. Hello, 325 00:17:55,240 --> 00:17:58,440 Speaker 1: Welcome back to the Australian's Money Puzzle podcast James Gadby 326 00:17:58,560 --> 00:18:06,080 Speaker 1: with Sarah Petty. We are talking property and we are 327 00:18:06,119 --> 00:18:09,680 Speaker 1: going to have some probably questions now. Actually this first 328 00:18:09,680 --> 00:18:13,040 Speaker 1: one is properly it's from Luke and it's about Super. 329 00:18:14,400 --> 00:18:16,679 Speaker 1: The reason I've just dropped this in here is just 330 00:18:16,720 --> 00:18:20,399 Speaker 1: to tell you folks that we really did have a 331 00:18:20,400 --> 00:18:23,960 Speaker 1: big response, needless to say from the show how much 332 00:18:23,960 --> 00:18:26,679 Speaker 1: should you have in Super? And just like I mentioned 333 00:18:26,760 --> 00:18:28,560 Speaker 1: on the newspaper, I reckon we could run a show 334 00:18:28,600 --> 00:18:30,520 Speaker 1: calle how much should you have in Super? I reckon 335 00:18:30,560 --> 00:18:33,359 Speaker 1: we could run one every month and we probably have 336 00:18:34,040 --> 00:18:37,479 Speaker 1: endless listeners because it's because it's a question that there 337 00:18:37,520 --> 00:18:41,040 Speaker 1: is no answer to, unfortunately, no simple answer. It's different 338 00:18:41,080 --> 00:18:43,480 Speaker 1: for every single person, but everybody really wants to know. 339 00:18:43,960 --> 00:18:45,960 Speaker 1: And that was a really good show with Ashley Owned 340 00:18:46,000 --> 00:18:47,960 Speaker 1: and if you've missed it, and it would be a 341 00:18:47,960 --> 00:18:52,680 Speaker 1: good idea to listen back to it because, as I say, 342 00:18:52,760 --> 00:18:55,879 Speaker 1: it's a key issue. It's particularly a key issue in 343 00:18:56,040 --> 00:19:00,320 Speaker 1: our in our society and our economy because because as 344 00:19:00,359 --> 00:19:02,960 Speaker 1: compulsory and the leven and a half said, your salary 345 00:19:03,000 --> 00:19:05,399 Speaker 1: is going into this every every year level and a 346 00:19:05,440 --> 00:19:07,679 Speaker 1: half percent of your salary. So you want to know 347 00:19:08,520 --> 00:19:10,119 Speaker 1: as much as you can about to check out that 348 00:19:10,160 --> 00:19:12,880 Speaker 1: show with ashually on one of the many questions we'll 349 00:19:12,880 --> 00:19:15,000 Speaker 1: do with the questions on Thursday's show, But one of 350 00:19:15,000 --> 00:19:18,159 Speaker 1: the many questions was from Luke, who says, as well 351 00:19:18,200 --> 00:19:22,880 Speaker 1: as maximizing last financial years concessional contributions to Super, I've 352 00:19:23,040 --> 00:19:26,520 Speaker 1: accidentally put in about two hundred dollars more than I 353 00:19:26,720 --> 00:19:30,159 Speaker 1: was allowed. What will happen? The ATO will come to 354 00:19:30,200 --> 00:19:32,960 Speaker 1: your house and take you away, Luke. No, I'm mony kidding. 355 00:19:33,480 --> 00:19:36,639 Speaker 1: This is never advised. This is general information, and I 356 00:19:36,640 --> 00:19:38,399 Speaker 1: don't have a second opinion here on the show. I 357 00:19:38,440 --> 00:19:41,240 Speaker 1: would just say that occasionally, over the years, in my 358 00:19:41,400 --> 00:19:45,000 Speaker 1: deep enthusiasm to contribute as much as possible to Super, 359 00:19:45,560 --> 00:19:48,400 Speaker 1: I have gone over once or twice a tiny bit, 360 00:19:48,880 --> 00:19:52,040 Speaker 1: and I'm happy to say I wasn't fined or anything 361 00:19:52,080 --> 00:19:55,719 Speaker 1: you can be fined. Whether it's their benevolence that they 362 00:19:55,800 --> 00:19:58,560 Speaker 1: let you off with small numbers or whether their systems 363 00:19:58,560 --> 00:20:01,760 Speaker 1: are so accurate, I don't know. Obviously, you try to 364 00:20:01,800 --> 00:20:04,240 Speaker 1: avoid it, and I suppose it's just a fair play. 365 00:20:05,000 --> 00:20:07,479 Speaker 1: What you could do, obviously, is if you're putting in 366 00:20:07,480 --> 00:20:10,320 Speaker 1: thirty thousand a year and one year you put in 367 00:20:10,400 --> 00:20:13,840 Speaker 1: thirty one thousand you didn't mean to, then put in 368 00:20:13,880 --> 00:20:15,840 Speaker 1: twenty nine the next and that ever should come up 369 00:20:15,840 --> 00:20:17,879 Speaker 1: with the ato, you could say that ironestly tried to 370 00:20:18,160 --> 00:20:23,800 Speaker 1: reconcile the issue there. Okay, now back to the property questions. 371 00:20:23,920 --> 00:20:29,359 Speaker 1: Marni Mr ni E on the issue of lenders mortgage 372 00:20:29,520 --> 00:20:33,920 Speaker 1: insurance seemed to me the most unfair slug on home buyers. 373 00:20:34,480 --> 00:20:37,720 Speaker 1: As a default rates are tiny, surely the insurance risks 374 00:20:37,760 --> 00:20:42,359 Speaker 1: are tiny too. Yeah, I'd say there are, but it's 375 00:20:42,400 --> 00:20:45,680 Speaker 1: because the bank's medic composory. It's become a big business 376 00:20:46,359 --> 00:20:49,520 Speaker 1: lender's mortgage insurance. You mentioned it a couple of times, like, 377 00:20:49,520 --> 00:20:51,840 Speaker 1: could you better tell readers at this business what it 378 00:20:51,960 --> 00:20:55,199 Speaker 1: is and why it's why it's a horn in the 379 00:20:55,240 --> 00:20:58,120 Speaker 1: shoe of the average home buyer. Yeah. 380 00:20:58,160 --> 00:21:02,000 Speaker 2: So, lender's mortgage insurance. This insurance and Linda takes out 381 00:21:02,240 --> 00:21:05,880 Speaker 2: to ensure itself against the risks of a borrower being 382 00:21:05,960 --> 00:21:07,960 Speaker 2: unable to meet their loan payments. 383 00:21:09,240 --> 00:21:12,240 Speaker 1: Yes, it doesn't have very often. The records show Australian 384 00:21:13,040 --> 00:21:16,040 Speaker 1: owned buyers don't be fall very often, very very very rarely. 385 00:21:16,160 --> 00:21:18,600 Speaker 2: I think, especially in you know, an environment of igh 386 00:21:18,600 --> 00:21:22,160 Speaker 2: interest rates, most banks are willing to refine it. It's 387 00:21:22,359 --> 00:21:23,359 Speaker 2: very much the last. 388 00:21:23,640 --> 00:21:27,080 Speaker 1: Okay, actually, you know, I've been doing some very I 389 00:21:27,080 --> 00:21:30,280 Speaker 1: have been doing I think some very interesting work of 390 00:21:30,440 --> 00:21:32,879 Speaker 1: Liz on what's going on with mortgage childrens and how 391 00:21:32,880 --> 00:21:35,639 Speaker 1: they're trying to survive through this particular period of what 392 00:21:35,680 --> 00:21:40,480 Speaker 1: would seem to be high relatively high blitz relatively high 393 00:21:40,480 --> 00:21:42,679 Speaker 1: and not sky high by the way, on a historical basis, 394 00:21:42,680 --> 00:21:45,680 Speaker 1: but the relatively high. The two things are happening. People 395 00:21:45,720 --> 00:21:49,240 Speaker 1: are flicking to interest only investors when they can or 396 00:21:49,320 --> 00:21:52,200 Speaker 1: I thought was really interesting was about mortgage extendards. Did 397 00:21:52,240 --> 00:21:56,080 Speaker 1: you have be seen that where people are where an 398 00:21:56,080 --> 00:21:59,240 Speaker 1: increasing amount of people are extending the life of their 399 00:21:59,320 --> 00:22:01,800 Speaker 1: More so, what you do is you say, I cannot 400 00:22:02,240 --> 00:22:05,359 Speaker 1: find any savings, I've got this mortgage. How am I 401 00:22:05,400 --> 00:22:07,720 Speaker 1: going to manage it. And what they do is the 402 00:22:08,240 --> 00:22:11,320 Speaker 1: renegotiate with the bank and they add five years and 403 00:22:11,359 --> 00:22:14,119 Speaker 1: then suddenly your your payments. So we made out that 404 00:22:14,240 --> 00:22:17,520 Speaker 1: basics for the average person in that position, their payments 405 00:22:17,560 --> 00:22:20,920 Speaker 1: come down about two hundred bucks a month, but their 406 00:22:21,040 --> 00:22:23,920 Speaker 1: loan goes up about one hundred and fifty thousand dollars 407 00:22:24,480 --> 00:22:27,040 Speaker 1: over there over the fullness of time. But people say, hey, 408 00:22:27,080 --> 00:22:30,520 Speaker 1: you know, I face that problem. It's a future it's 409 00:22:30,560 --> 00:22:33,920 Speaker 1: a picking the can down the road exercise. But anyway, 410 00:22:34,280 --> 00:22:36,480 Speaker 1: it is what's happening. And if you wonder how are 411 00:22:36,480 --> 00:22:41,440 Speaker 1: people paying their mortgages when there's such rampant inflation, especially 412 00:22:41,480 --> 00:22:44,600 Speaker 1: at the consumer side and the discretioniony spending side, well 413 00:22:44,640 --> 00:22:46,280 Speaker 1: that's what's going on. There's a lot of that going 414 00:22:46,280 --> 00:22:50,000 Speaker 1: on behind the scenes. Okay, that was the lender's mortgage insurance, 415 00:22:50,000 --> 00:22:52,879 Speaker 1: which again, unfortunately is unavoidable for most people unless you 416 00:22:53,080 --> 00:22:56,040 Speaker 1: fucking huge deposit. There's not what you can do there 417 00:22:56,080 --> 00:22:58,119 Speaker 1: about netfolks. But you can keep in mind that you 418 00:22:58,160 --> 00:23:01,199 Speaker 1: can read finance. You can fit too interest only if 419 00:23:01,200 --> 00:23:03,480 Speaker 1: you're an investors, say, and you're struggling with the investment 420 00:23:03,600 --> 00:23:05,639 Speaker 1: you have and you can extend the life of your 421 00:23:05,680 --> 00:23:09,240 Speaker 1: mortgage if you were a home owner struggling with your insurance. 422 00:23:10,119 --> 00:23:12,560 Speaker 1: That's I think they're useful for people to know, useful 423 00:23:12,560 --> 00:23:19,679 Speaker 1: sort of techniques. Okay. Final question, what's from Josh is 424 00:23:19,720 --> 00:23:23,320 Speaker 1: the government's shared equity being up and running? Do you 425 00:23:23,400 --> 00:23:25,720 Speaker 1: recommend it? Thank you, Josh, And we don't, you know, 426 00:23:25,760 --> 00:23:29,280 Speaker 1: we don't give advice, but the government, to be precise, 427 00:23:29,320 --> 00:23:32,520 Speaker 1: the iban as government shared Equity same. It's really different 428 00:23:32,520 --> 00:23:35,000 Speaker 1: than all the inner grants. Is that because the data 429 00:23:35,119 --> 00:23:38,880 Speaker 1: is you and the government buy the house together. It's 430 00:23:38,920 --> 00:23:42,320 Speaker 1: basically yes, does it exist yet and no. 431 00:23:42,520 --> 00:23:45,000 Speaker 2: So it's held up in Senate at the moment, but 432 00:23:45,480 --> 00:23:48,119 Speaker 2: if everything goes to plan, it will pass and be 433 00:23:48,520 --> 00:23:50,280 Speaker 2: up and running by the end of this year. 434 00:23:50,800 --> 00:23:53,399 Speaker 1: Okay, all right, I see. So it's not actually okay 435 00:23:53,480 --> 00:23:56,000 Speaker 1: that out yet? Yes, can you apply? 436 00:23:56,160 --> 00:23:59,040 Speaker 2: I wonder I think the well Queensland is set to 437 00:23:59,040 --> 00:24:02,159 Speaker 2: be the first two role out the shared Equity scheme, 438 00:24:02,440 --> 00:24:05,160 Speaker 2: so it's not up and running yet, but it will be. 439 00:24:05,520 --> 00:24:08,520 Speaker 1: And so how it works is that you and the 440 00:24:08,560 --> 00:24:11,480 Speaker 1: government together were buy the house. And how does the leend? 441 00:24:11,960 --> 00:24:17,840 Speaker 2: Basically, the government contributes after forty percent towards your mortgage loan, 442 00:24:18,520 --> 00:24:20,399 Speaker 2: you can put down as little as two percent. However, 443 00:24:20,480 --> 00:24:22,320 Speaker 2: that also means on the other side, when you sell 444 00:24:22,359 --> 00:24:25,199 Speaker 2: your home, they will be able to ex slice the 445 00:24:25,200 --> 00:24:31,400 Speaker 2: pie whatever or however much they Yes, they'll be able 446 00:24:31,440 --> 00:24:34,119 Speaker 2: to take that in terms of your equity, but it 447 00:24:34,160 --> 00:24:38,199 Speaker 2: also works the same way as it probably down so 448 00:24:38,320 --> 00:24:39,760 Speaker 2: does the amount that they will be able to take 449 00:24:39,840 --> 00:24:40,159 Speaker 2: from that. 450 00:24:40,800 --> 00:24:44,520 Speaker 1: Yeah, right, I know a lot of the Australians of 451 00:24:44,520 --> 00:24:47,480 Speaker 1: the readers and commentaries did not like sharing anything with 452 00:24:47,520 --> 00:24:50,959 Speaker 1: the government. But again, if you were you know, if 453 00:24:50,960 --> 00:24:53,320 Speaker 1: you really needed to get to buy that place and 454 00:24:53,359 --> 00:24:58,080 Speaker 1: if you didn't have any other option, I started closely 455 00:24:58,240 --> 00:25:01,800 Speaker 1: kind of I wrote on it. Interestingly, in the UK 456 00:25:01,960 --> 00:25:04,480 Speaker 1: they had this scheme and it was actually it was 457 00:25:04,520 --> 00:25:09,840 Speaker 1: actually created by the Conservatives, not the Labor government. Conservatives, 458 00:25:09,960 --> 00:25:11,480 Speaker 1: as you know, we're in for fourteen years in a 459 00:25:11,560 --> 00:25:15,080 Speaker 1: rolder and so they introduced this. Then that they had 460 00:25:15,080 --> 00:25:17,600 Speaker 1: a House lords to a review of the scheme and 461 00:25:18,800 --> 00:25:21,879 Speaker 1: basically they came out with a conclusion that it didn't 462 00:25:21,920 --> 00:25:25,760 Speaker 1: do much for the provision of housing and market. You 463 00:25:25,880 --> 00:25:28,119 Speaker 1: often get that sort of conclusion on a macro level, 464 00:25:28,119 --> 00:25:30,760 Speaker 1: but for an individual different thing doesn't work for me, 465 00:25:31,680 --> 00:25:34,159 Speaker 1: so I think for listeners it's worth checking out that 466 00:25:34,520 --> 00:25:35,480 Speaker 1: share scheme. 467 00:25:35,600 --> 00:25:37,040 Speaker 2: Yeah, you know, it depends on what you do. If 468 00:25:37,040 --> 00:25:39,840 Speaker 2: you just purely trying to find her home and get 469 00:25:39,840 --> 00:25:43,480 Speaker 2: into the market, then it could be an option. Not 470 00:25:44,080 --> 00:25:45,320 Speaker 2: give you any advice, of. 471 00:25:45,240 --> 00:25:48,880 Speaker 1: Course, anyone anywhere in the country as long as it's 472 00:25:48,920 --> 00:25:52,840 Speaker 1: their first home is at the deed, yes, absolutely so. Right, 473 00:25:53,440 --> 00:25:57,000 Speaker 1: so you get perhaps shared equity on a bill a unit, yes, 474 00:25:59,119 --> 00:26:02,399 Speaker 1: and is a property the new heart property. So you 475 00:26:02,480 --> 00:26:04,200 Speaker 1: heard it here first, folks, believe you heard it here 476 00:26:04,200 --> 00:26:07,320 Speaker 1: actually last week too. You're hearing it here quite frankly. 477 00:26:07,680 --> 00:26:10,280 Speaker 1: All right, very good, Hey, thank you very much, Sarah. 478 00:26:10,600 --> 00:26:14,119 Speaker 1: Very very interesting as always, it's a great round you 479 00:26:14,160 --> 00:26:19,840 Speaker 1: have out there and it's something that everyone everybody's interested in. 480 00:26:20,040 --> 00:26:22,200 Speaker 1: And I watched show what you do when I find 481 00:26:22,240 --> 00:26:24,880 Speaker 1: some of the story is really really interesting. I told 482 00:26:24,880 --> 00:26:27,920 Speaker 1: you one about the nineteen nine Tells dollar polishes particularly, 483 00:26:28,000 --> 00:26:35,080 Speaker 1: so thanks a lotter. Great to have you on the show. 484 00:26:35,119 --> 00:26:39,680 Speaker 1: We've talked again. Thank you, folks. Do keep those emails 485 00:26:39,720 --> 00:26:43,040 Speaker 1: coming the addresses the Money Puzzle at the Australian dot 486 00:26:43,040 --> 00:26:44,880 Speaker 1: com dot au. Thank you soon.