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Speaker 1: Good morning, and welcome back to Sugar Mumba's Fireplay, the

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Speaker 1: podcast where we ignite your financial independence, fuel your early

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Speaker 1: retirement goals and dreams, and help you build long term

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Speaker 1: sustainable wealth. Today I am joined by someone very special

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Speaker 1: to me and this community. That is my own personal

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Speaker 1: mortgage broker, Adam McCabe from Blue Lantern Home Loans. Now,

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Speaker 1: if you have been following the news, and you may

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Speaker 1: have actually seen my segment on Channel nine's The Today Show,

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Speaker 1: you would have heard about the changes to the First

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Speaker 1: Home Guarantee, that is the government's five percent deposit scheme

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Speaker 1: that has just launched now. This program has been designed

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Speaker 1: to help make home ownership more accessible by removing the

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Speaker 1: need for the twenty percent deposit traditionally we needed, and

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Speaker 1: more value of this is actually avoiding costly lenders mortgage insurance,

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Speaker 1: which can easily hit into the thousands, if not tens

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Speaker 1: of thousands for some. This is really interesting, this new scheme.

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Speaker 1: But here's the thing, there is so much fine print

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Speaker 1: behind this, and there are so many details that not

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Speaker 1: everyone actually understands yet because this is only just launched,

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Speaker 1: and including a very interesting rule that actually may allow

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Speaker 1: people who haven't owned property for ten years, even though

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Speaker 1: they may have owned previously, such as say single parents,

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Speaker 1: to actually qualify. Now, my ears really pricked up when

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Speaker 1: I went through the fine print trying to find as

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Speaker 1: much information as possible, because this then means it isn't

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Speaker 1: actually just limited to first home buyers, but it actually

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Speaker 1: can include people, as I said, like single parents or

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Speaker 1: people who may be previously owned many many years ago

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Speaker 1: in excess of ten because they may actually qualify for

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Speaker 1: this and not have to pay lender's mortgage insurance and

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Speaker 1: secure a property for their family, create that stability and

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Speaker 1: security with as little as five percent. So in today's episode,

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Speaker 1: I'm actually going to pick Adam Brain about this because

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Speaker 1: obviously he knows in more detail as to how it works,

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Speaker 1: who qualifies, and what the actual process looks like, even

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Speaker 1: how he can help you enoughously how to prepare for this,

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Speaker 1: because you don't actually have to just stop at five percent.

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Speaker 1: You can keep saving as much as you like and

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Speaker 1: still make the most of this government guarantee. And I

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Speaker 1: also want to flag whilst there are obviously issues behind this,

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Speaker 1: you've also got to keep in mind that you need

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Speaker 1: to pay this mortgage off and help maintain a life

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Speaker 1: of a decent quality of life and obviously your own lifestyle.

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Speaker 1: So all right, enough for me, let's get breakdown everything

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Speaker 1: that you need to know and understand about the newly

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Speaker 1: launched First Home Guarantee scheme with Adam McCabe. Good morning, Adam.

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Speaker 1: How are you?

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Speaker 2: I'm great, Ken, how are you?

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Speaker 1: I'm well? Thank you, I'm well. I wanted to say

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Speaker 1: to everyone listening right now. You know, Adam is an

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Speaker 1: amazing resource. He's someone who I use personally, and also

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Speaker 1: he's helped out a lot of my family members and friends.

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Speaker 1: So if you ever want to ask Adam, you don't

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Speaker 1: have to go through me. You can just go directly

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Speaker 1: to Adam and I'll obviously link his contact details in

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Speaker 1: the podcast notes. But Adam, this is quite exciting, this

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Speaker 1: first Home Guarantee. I will admit there are obviously some

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Speaker 1: issues behind it concerns. But how does this work from

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Speaker 1: a logistical practical point of view?

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Speaker 2: Well, the basics up front are that you the government

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Speaker 2: are essentially replacing the mortgage insurer, and with replacing the

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Speaker 2: mortgage insurer, you then save on mortgage insurance, so you're

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Speaker 2: not paying any premium to cover not having the twenty

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Speaker 2: percent deposit.

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Speaker 1: On average, how much would someone save by not having

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Speaker 1: to pay mortgage lenders insurance. I know it's obviously subject

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Speaker 1: to the size of the loan and obviously the deposit

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Speaker 1: that person actually has, but I mean, is it we're

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Speaker 1: talking about two thousand dollars saving or like an eight

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Speaker 1: thousand dollars saving from them.

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Speaker 2: Well, it's a step. The ELMI premiums are stepped, so

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Speaker 2: the higher your loan de value ratio and then the

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Speaker 2: higher the loan amount, that premium will increase. But at

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Speaker 2: the top level, you know, in Sydney the new price

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Speaker 2: cap is one point five million, So if you buy

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Speaker 2: at that one point five million and you've only got

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Speaker 2: the five percent deposit, you would say fifty five thousand

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Speaker 2: in mortgage insurance.

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Speaker 1: Fifty five thousand dollars in mortgage insurance from this. Wow, okay,

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Speaker 1: that is that is huge because I mean that's that's

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Speaker 1: a couple of years with the savings.

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Speaker 2: Well it's almost been on a five percent Yeah.

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Speaker 1: Gosh, okay, this is important. Who can actually apply for this, So.

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Speaker 2: It's open to all citizens and permanent residents. You've obviously

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Speaker 2: got to be an adult, so minimum of eighteen to

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Speaker 2: prior to October one, there are price caps and income caps.

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Speaker 1: Have they been scrapped though, haven't they?

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Speaker 2: They've been scrapped, so the price caps have been increased,

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Speaker 2: but the income caps have been removed altogether, so it's

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Speaker 2: open to everyone that can qualify and buy in those.

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Speaker 1: Caps amounts for people buying a principal place of residence.

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Speaker 1: You can't be buying this to then rent the property out.

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Speaker 2: That's correct. You can't use it for investment purposes. It's

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Speaker 2: to reside in. There can be different types of property,

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Speaker 2: so you can buy a vacant land and build that's okay,

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Speaker 2: or completed properties, but it has to be for occupation unoccupiers,

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Speaker 2: not for investors.

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Speaker 1: What happens though, for someone who does this and then

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Speaker 1: three years later then decides to rent that property out.

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Speaker 1: I mean, I know there's we don't have the rules

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Speaker 1: yet about this because it's obviously not looking forward three

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Speaker 1: years time. But does this person mean that they are

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Speaker 1: locked into only live in that property and if they

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Speaker 1: have to then sell it? Or is am I asking

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Speaker 1: a question that's too unknown right now.

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Speaker 2: A bit too unknown, But at the same time, I

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Speaker 2: think if you think about it rationally, right like so

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Speaker 2: previous first home buyer grants and first home buy benefits,

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Speaker 2: you had to move into the property, even it for

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Speaker 2: six months, within the first twelve months, I think it was.

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Speaker 2: So once you qualify and you meet that policy or

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Speaker 2: that rule, I think you're okay because no one can

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Speaker 2: force you to live in something you know at a

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Speaker 2: longer later date if you're so stances changed and you

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Speaker 2: can't afford it anymore.

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Speaker 1: Yeah, and you think I got to rent it out?

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Speaker 2: Yeah, is going to make a change with the family. Absolutely,

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Speaker 2: I would think that would be okay. There's common sense

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Speaker 2: approaches to that, but.

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Speaker 1: Obviously you need to check the fine print when when

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Speaker 1: once the government becomes clear as to where the boundaries are,

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Speaker 1: all right, can we talk about people who qualify for

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Speaker 1: this that haven't brought a property for ten years? Because

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Speaker 1: I went on the Today Show and I said this,

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Speaker 1: and I was really scared in saying this, but I

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Speaker 1: did a lot of research and everywhere I checked I

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Speaker 1: was right. But nobody else is talking about this, and

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Speaker 1: that is it's not just first homeowners, it's people who

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Speaker 1: haven't owned a property or bought a property for at

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Speaker 1: least ten years. They potentially qualify for this from what

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Speaker 1: I read on the government website. So if I'm wrong,

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Speaker 1: we can blame the government incorrect or misleading people. But

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Speaker 1: no one else is talking about this. I felt like

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Speaker 1: I stuck my head out and was quite risky, and

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Speaker 1: I did have a moment of panic, going well it's right,

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Speaker 1: I go cross eyed.

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Speaker 2: No, you're right. So if you've if you haven't owned

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Speaker 2: property for more than ten years, you qualify as well.

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Speaker 2: But you can't own one currently. Obviously. It's because that

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Speaker 2: would mean there are whether you still own an investment

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Speaker 2: properties put probably more. That's the Yeah, okay, so there's

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Speaker 2: still some clarity went in to under sin around that,

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Speaker 2: but it's a little bit murky. It's the rules are

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Speaker 2: that you have to not have owned a property for

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Speaker 2: ten years prior to the day that you sign the

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Speaker 2: loan contract with your lender.

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Speaker 1: And that's why it's so important to work with a

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Speaker 1: mortgage broker who can actually ask those questions, tick those

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Speaker 1: boxes and make sure everything is bulletproof and you are

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Speaker 1: safe and qualifying.

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Speaker 2: Look, I think it complicates things. It should just be

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Speaker 2: that you can't sign a purchase contract prior to that

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Speaker 2: ten year date. That would make it simple because there

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Speaker 2: could be some gray areas there where you sign a

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Speaker 2: purchase contract then you have to wait a certain period

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Speaker 2: of time to reach that ten years if it's not

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Speaker 2: far away, yeah, but then you've got the pressure on

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Speaker 2: to meet settlement by the due date. But anyway, that's

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Speaker 2: a good mortgage broke will navigate that for you.

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Speaker 1: This is huge. So as I sort of been in

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Speaker 1: the introduction, you know, this means single parents, particularly in

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Speaker 1: cities like Sydney where you know the rents are being

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Speaker 1: put up or people are selling their property or they're

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Speaker 1: moving back into their property, and you know, young families

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Speaker 1: don't have that sense of stability, and particularly you know,

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Speaker 1: single parents. This is an opportunity if you have a

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Speaker 1: deposit or you're working on saving a deposit to be

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Speaker 1: actually able to qualify for this and you know potentially

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Speaker 1: save you know, fifty thousand dollars and there is mortgage

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Speaker 1: insurance through this if you haven't owned a property for

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Speaker 1: ten years. This is massive. Why are more people talking

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Speaker 1: about this very important group of people.

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Speaker 2: It's obviously designed to help those who have owned previously

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Speaker 2: run into trouble, financial difficulty or maybe family troubles that

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Speaker 2: can now get back into the market.

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Speaker 1: They need to change the name to not just first

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Speaker 1: Home Guarantee, it needs to be first home and within

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Speaker 1: ten years, within ten years previously owned. All right, that's

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Speaker 1: I mean, I really want to make people aware of

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Speaker 1: that because there's I think everyone knows at least one

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Speaker 1: person that it's a single parent that hasn't owned, you know,

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Speaker 1: for ten years, and would desperately love to create a

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Speaker 1: sense of stability and security definitely for their family and

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Speaker 1: not just parents, but you know individuals as well. All right,

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Speaker 1: Can we move on to the actual deposit needed and

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Speaker 1: how much money you have to have saved because it

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Speaker 1: doesn't just stop at that five percent deposit, does it.

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Speaker 2: No, So you need five percent deposit, which needs to

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Speaker 2: be genuine savings. It can't be a gift.

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Speaker 1: Okay, what does genuine savings look like? What is the definition?

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Speaker 2: Definition can vary from lender to lender, but it's generally

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Speaker 2: three months minimum, but in many cases it might be six.

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Speaker 2: So in many cases it might be six months to

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Speaker 2: verify that you've held that minimum amount for that period

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Speaker 2: of time. That's to show the bank certainty that you

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Speaker 2: can either save for an extended period or maintain having

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Speaker 2: that deposit without dipping into it regularly. You can dip

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Speaker 2: into your savings regularly, that's okay, But five percent as

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Speaker 2: a minimum needs to be saved. It can't be gifted

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Speaker 2: and it can't be alone.

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Speaker 1: So you should be able to show those savings transactions.

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Speaker 2: Yeah, it's showing good behavior and pattern.

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Speaker 1: Yeah, like healthy financial habits. Correct, And the bank can

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Speaker 1: see that you're going to be able to serve us

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Speaker 1: a mortgage, handle interest rate rises, and actually eventually pay

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Speaker 1: it off in due course.

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Speaker 2: Correct. And it's obviously the government out of the scheme

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Speaker 2: is not just handed out to anyone who's you know,

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Speaker 2: wealthy background who can just be handed money as their deposit.

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Speaker 2: Shows some restraint and good behavior to maintain that, and

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Speaker 2: then you can apply for the line.

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Speaker 1: What about beyond the deposit? You know, it's not just

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Speaker 1: five percent? What other expenses have we got to account all?

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Speaker 2: That's where it gets tricky, and that's where you need

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Speaker 2: a good broker and some good legal advice to navigate

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Speaker 2: that because from state to state it varies. So you

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Speaker 2: get there's the stamp duty concession, but stamp duty in

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Speaker 2: New South Wales only covers you up to eight hundred thousand.

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Speaker 2: From eight hundred thousand to a million dollars, it's then

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Speaker 2: concessional stamp duty, so it's discounted. But anything above a million,

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Speaker 2: you're paying stamp duty as well. Yeah, legal fees, so

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Speaker 2: conveyancing fees, removalless costs, insurance, they come with everything, and

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Speaker 2: they're you know, reasonably insignificant fees. But the big one

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Speaker 2: is the stamp duty. If you don't qualify for the exemptions.

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Speaker 1: I think that building inspections, stratus just and things like that,

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Speaker 1: you know, all those idiots integracies when you're just as

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Speaker 1: you're about to buy. So, yeah, it's not just you're

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Speaker 1: not just stopping short at the five percent. You've got

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Speaker 1: to keep going your additional expenses.

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Speaker 2: You got to. Yeah, that's right. That's where it's That's

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Speaker 2: where it's a bit sneaky the wording. It's not if

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Speaker 2: five percent just doesn't get you in the door.

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Speaker 1: Yeah.

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Speaker 2: And then obviously I like to tell all of my

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Speaker 2: clients when you're buying a home and you're then taking

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Speaker 2: out a mortgage, you want to have some cover. I

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Speaker 2: like to say minimum three months of mortgage repayments as

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Speaker 2: a buffer, so that if you do run into some trouble,

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Speaker 2: you'd be okay to get by until a new job

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Speaker 2: comes along or whatever. Whatever. That out of pocket expense

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Speaker 2: that was unexpected, he's dealt with that. You're still okay.

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Speaker 2: So you don't want to just have five percent throw

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Speaker 2: it all in you've got nothing left. Yeah, you want

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Speaker 2: to have a bit of backup.

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Speaker 1: And you know, I always say to people, whilst you're

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Speaker 1: going through that settlement period, you know, say six week

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Speaker 1: settlement period, keep saving a little harderut like, so that

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Speaker 1: you have that buffer building up as quickly as possible,

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Speaker 1: even if you have had to just clear your bank

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Speaker 1: accounts out. Can we talk about the property caps and

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Speaker 1: how it impacts in different locations because this is not

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Speaker 1: a one sweeping generalization general rule.

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Speaker 2: No, So as you'd expect, Sydney's got the biggest cap,

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Speaker 2: which is one point five so there used to be

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Speaker 2: sub There are also regional caps as well, so one

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Speaker 2: point five is Metro and then there's regional caps which

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Speaker 2: are now eight hundred thousand.

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Speaker 1: Okay, so you have to do you look that up

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Speaker 1: on a map and you can see the boundaries.

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Speaker 2: No, so there's a postcode tool. Ah, so you play

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Speaker 2: within the first time Guarantee website. There's a postcode tool

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Speaker 2: where you can plug in that postcode. It will tell

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Speaker 2: you which section that qualifies under. So then you've got

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Speaker 2: Victoria and Queensland as well have got a higher metro

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Speaker 2: cap and a higher regional cap as well. So Victoria's

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Speaker 2: gone to nine to fifty from eight hundred, and then

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Speaker 2: their regional has maintained at six fifty. And the regional ones,

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Speaker 2: I guess the ones that have less expansion over the

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Speaker 2: last few year years, whereas the metros is where it's

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Speaker 2: really going a bit crazy and the higher cap is needed.

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Speaker 2: Where can you buy in Sydney for you know, the

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Speaker 2: previous cup was nine hundred. Yeah, that's very hard.

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Speaker 1: A car spot. Yeah, all right, even with the government guarantee,

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Speaker 1: what conditions are the lenders that you work with obviously

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Speaker 1: every day and I know there's a lot of them,

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Speaker 1: but what are they looking at? Like serviceability, you know,

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Speaker 1: sensitivity around interest rate rises.

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Speaker 2: All the same applies. We still need to apply a

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Speaker 2: responsible lending, so you've got three percent buffer on the

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Speaker 2: servicing assessment of your borrowing capacity. Still the same verification

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Speaker 2: of income, the savings is the big one, the genuine

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Speaker 2: savings as well as any existing commitments that you've got,

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Speaker 2: so repayment history on car loans or credit cards. Yeah,

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Speaker 2: nothing really changes in that respect. It's still got to

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Speaker 2: be responsible lending, and you have.

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Speaker 1: To go through a particular lender, don't you. You can't

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Speaker 1: just go to any old random you don't think.

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Speaker 2: But it's a good point. Some lenders are not participating

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Speaker 2: in the government scheme. Really yeah, so for example, ANZ

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Speaker 2: isn't in there. Wow, I don't think that's a bad thing.

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Speaker 2: I think that's a good thing. I think one really

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Speaker 2: good foundation of the banking system in Australia is that

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Speaker 2: we've got really good competition and through that competition there

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Speaker 2: are so many banks and lend mortgage providers now have

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Speaker 2: understood that we need to have niches because if every

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Speaker 2: bank provides the same you're going to have people miss out.

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Speaker 2: So separate banks having different niches just opens avenues for

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Speaker 2: customers that their existing lender may not meet. So some

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Speaker 2: lenders not participating in this isn't necessarily a bad thing.

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Speaker 2: We still need to have banks that focus on other niches.

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Speaker 1: Okay, so what now the hidden costs or the pitfalls

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Speaker 1: or even risks of this.

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Speaker 2: Same as it would apply with any mortgage. I mean,

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Speaker 2: although the one difference which applies to anyone who are

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Speaker 2: borrowing ninety five percent, even if you've been an existing homeowner.

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Speaker 2: Well you can't have certainty around income because that can change, correct,

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Speaker 2: but stability because the last thing you want to do

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Speaker 2: is go and buy a home where you've only kicked

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Speaker 2: in five percent, so the bank owns ninety five and

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Speaker 2: in six or twelve months time, you've got to hand

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Speaker 2: the keys back if there's a.

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Speaker 1: If the market comes back, comes back.

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Speaker 2: And you can't afford the loan, they take possession. So

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Speaker 2: you want to have some stability before just thinking, hey, great,

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Speaker 2: I've got five percent, I'm going to go and buy.

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Speaker 2: So understand how your employment situation looks. As we said earlier,

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Speaker 2: a buffer. You want to have something to fall back

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Speaker 2: on because we can never plan.

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Speaker 1: For the unexpected, and things like obviously having income protection.

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Speaker 1: You know, Crystal Insurance is in place to add that

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Speaker 1: additional layer of protection. Definitely even peace of mind. If

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Speaker 1: someone's listened to this right now, it's like, okay, I

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Speaker 1: think I might qualify. Like what are the steps involved? Obviously,

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Speaker 1: start saving minimum of three months with the regular saving

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Speaker 1: habits that can be demonstrated through transactions and deposits and

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Speaker 1: so forth, and you know, leaving that money within reason.

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Speaker 1: What else do we need to be doing?

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Speaker 2: Is this?

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Speaker 1: When do we pick up the phone and call a

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Speaker 1: mortgage broker like yourself? When do we start looking at property?

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Speaker 1: What are the sensible smart steps involved to make the

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Speaker 1: most of this opportunity whilst it's red hot, I'd.

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Speaker 2: Say the most important step is understanding what your capacity is.

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Speaker 2: And your capacity firstly starts with your income and your

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Speaker 2: ability to repay, So what loan repayment can you afford?

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Speaker 2: And then that dictates your loan size, that dictates your

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Speaker 2: purchase price.

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Speaker 1: So and that's something you can tell people.

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Speaker 2: Absolutely, we do that every week. Okay, you don't necessarily

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Speaker 2: need to have the five percent up and ready to go.

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Speaker 2: If you're part way through or you just started the journey,

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Speaker 2: it's okay to check in with a broker to understand

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Speaker 2: what your capacity might be based on your income, so

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Speaker 2: that you can set yourself a goal target goal of

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Speaker 2: what you need to save to.

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Speaker 1: Then I think that would be invaluable because it gives

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Speaker 1: you an idea as to how you're tracking, and you

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Speaker 1: can start to be you know, I guess hone in

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Speaker 1: or narrow down you know, the particular properties that are

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Speaker 1: actually applicable and relevant to you and just give you

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Speaker 1: that greatest sense of clar.

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Speaker 2: It also gives you a bit of insight into what

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Speaker 2: the repayments might be. Yeah, because I have conversations with

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Speaker 2: people all the time. My friend had bought this house

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Speaker 2: and we want to do the same. Then we tell

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Speaker 2: them what the week their repayments would be and they'll

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Speaker 2: fall off the chair and they say, okay, well we

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Speaker 2: can't afford that. Yeah, so you need to know where.

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Speaker 1: You sit, and that just might mean not trying, but

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Speaker 1: just reassessing and just maybe bringing that expectation down to

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Speaker 1: something that does fit within your budget or even they

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Speaker 1: might be able to afford it, but their lifestyle is

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Speaker 1: a bigger priority and they're not prepared to dedicate that

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Speaker 1: much money out of their cash fload to a mortgage.

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Speaker 2: Correct. And I think the biggest side of what the

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Speaker 2: government's trying to do here is to promote and encourage

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Speaker 2: as many astrains as possible to be homeowners. Sets us

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Speaker 2: up for retirement. So if that means you start, you know,

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Speaker 2: not the ideal home. It's not your forever home. That's okay.

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Speaker 2: You're in the market because one thing that will happen

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Speaker 2: from this this scheme is that properly prices are going up.

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Speaker 1: Okay, we're going to talk about the elephant in the

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Speaker 1: room in just one moment. Will come to that, and

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Speaker 1: I want you to. I want the Adam to unleash

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Speaker 1: and tell me his true thoughts and feelings. Okay, okay, good,

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Speaker 1: because normally you're very politically correct and polite and consider it.

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Speaker 1: I want to hear your thoughts. But my next question

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Speaker 1: before you do that is for people who are doing

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Speaker 1: this or about to do this. Once you've established your

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Speaker 1: foot in the property market, you're in your home using

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Speaker 1: the you know this five percent government guarantee, how do

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Speaker 1: we make sure that we can stay in that home,

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Speaker 1: we can pay it off, and we can actually build

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Speaker 1: our wealth beyond the limitations of a principal place of residence,

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Speaker 1: Like do you recommend not just following the bank's prescription

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Speaker 1: of a mortgage of payment but actually try and pay

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Speaker 1: extra off or use your tax refunds to pay it off,

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Speaker 1: or increase your mortgage of payments with pay rises and promotions,

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Speaker 1: you know, use the equity to look at a debt

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Speaker 1: recycling strategy for the down the track. Sorry I'm trying

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Speaker 1: to answer your question, but I want to make sure

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Speaker 1: people realize this isn't about just getting a foot in

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Speaker 1: the door. It's about building a sustainably financially friendly life

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Speaker 1: from this opportunity.

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Speaker 2: Look, I say this all the time, whether you're an

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Speaker 2: existing homemaner or new potential homeowner. Budget do it every

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Speaker 2: six months at least, keep on top of it. That's

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Speaker 2: how you promote or increase cash flow surpus and that's

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Speaker 2: how you can pay your line off quicker or do

400
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Speaker 2: some investing. Obviously, you want to stay on top of

401
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Speaker 2: your interest rate. That's what a good broker will do

402
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Speaker 2: for you.

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Speaker 1: Yeah, and you automatically check all of your clients with

404
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Speaker 1: interest rates on a regular basis and ask for discounts

405
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Speaker 1: on their behalf.

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Speaker 2: Yes, we bluff and that's all it takes. Whether it's

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Speaker 2: a broker doing it for you or you calling your bank,

408
00:19:28,760 --> 00:19:31,760
Speaker 2: do it. It's the same with your home and contents insurance,

409
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Speaker 2: car insurances. If you don't ask for a better deal,

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Speaker 2: you won't get one.

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Speaker 1: And loyty taxes ex. Loyalty tax correct, Yeah, don't leave

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Speaker 1: any money on the table.

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Speaker 2: No, Yeah, that aside, it's about saving. If you get

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Speaker 2: tax refunds, putting into your mortgage pay increases.

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Speaker 1: And use that extra money. You can still be your

416
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Speaker 1: emergency money. You can use an offset account or a

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Speaker 1: redraw facility. They both work exactly the same, but they

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Speaker 1: save you thousands of dollars. But sometimes, and time.

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Speaker 2: Rate cuts the big one. And look, sometimes I speak

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Speaker 2: to clients of mine or potential customers who dislike this.

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Speaker 2: But when the majority of banks and Leander is out

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Speaker 2: there at the moment when rate cuts are passed on,

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Speaker 2: they don't automatically reduce your repayments, keep it the same,

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Speaker 2: So it means that you're getting it a head faster.

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Speaker 1: Yeah.

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Speaker 2: Now, well, some people who might think that that's unfair

427
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Speaker 2: because they'd rather the drop in repayments to ease the pressure. Yeah,

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Speaker 2: it's not a bad thing if you can keep at it.

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Speaker 2: If not, call the bank. But if you can keep

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Speaker 2: it the same.

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Speaker 1: Keep it as close as possible.

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Speaker 2: Yeah, increase it. So they're the little things that you

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Speaker 2: can do.

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Speaker 1: Yeah. And by doing a budget you know, okay, well,

435
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Speaker 1: look we're potentially saving two hundred dollars a month in interest,

436
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Speaker 1: But we've got because you got a type budget, perhaps

437
00:20:36,920 --> 00:20:39,760
Speaker 1: we increase up, you know, have our mortgage repayments increased

438
00:20:39,760 --> 00:20:41,439
Speaker 1: by one hundred. We've got extra one hundred dollars per

439
00:20:41,440 --> 00:20:43,520
Speaker 1: month for the family project. You know you can find

440
00:20:43,520 --> 00:20:45,720
Speaker 1: it's not one or the other. There is a balance there.

441
00:20:45,760 --> 00:20:47,560
Speaker 1: But if you can only see that by doing a budget,

442
00:20:47,600 --> 00:20:50,359
Speaker 1: knowing your numbers, that's exactly right. Okay, what are your

443
00:20:50,359 --> 00:20:53,919
Speaker 1: thoughts on this? Is this just a disaster like waiting

444
00:20:53,960 --> 00:20:56,800
Speaker 1: to happen. Are we're just going to push housing prices

445
00:20:57,000 --> 00:21:00,639
Speaker 1: even further away, making them even more unobtainable for so

446
00:21:00,760 --> 00:21:05,000
Speaker 1: many Australians or do you actually see this as a solution.

447
00:21:05,400 --> 00:21:07,520
Speaker 2: I don't necessarily say it as a solution. I think

448
00:21:07,520 --> 00:21:10,679
Speaker 2: we've got a real supply issue here and this is

449
00:21:10,720 --> 00:21:12,880
Speaker 2: only going to make that more difficult with prices being

450
00:21:12,880 --> 00:21:15,439
Speaker 2: pushed up. To the level of immigration. The big one

451
00:21:15,480 --> 00:21:17,520
Speaker 2: might be of the timing of immigration and how long

452
00:21:17,640 --> 00:21:20,560
Speaker 2: those people immigrants would take to get citizenship or permanent

453
00:21:20,640 --> 00:21:23,400
Speaker 2: residency visas before they can get into this. I don't

454
00:21:23,440 --> 00:21:25,280
Speaker 2: know the answer to that. But the government aren't building

455
00:21:25,280 --> 00:21:28,159
Speaker 2: houses like they've promised to, So this is going to

456
00:21:28,200 --> 00:21:30,879
Speaker 2: cause us a bigger supply problem which will push prices

457
00:21:30,960 --> 00:21:32,439
Speaker 2: up bottom line.

458
00:21:32,520 --> 00:21:36,119
Speaker 1: So it's like a token, fake generosity.

459
00:21:35,520 --> 00:21:39,960
Speaker 2: That unintended consequences as well, like what will mortgage insurers do?

460
00:21:40,160 --> 00:21:42,080
Speaker 2: You know? The mortgage insurers are no longer getting all

461
00:21:42,080 --> 00:21:44,840
Speaker 2: of this business. So if you don't qualify as a

462
00:21:44,880 --> 00:21:46,680
Speaker 2: first home buyer, but you want to buy an investment

463
00:21:46,680 --> 00:21:50,800
Speaker 2: property with mortgage insurance, they might increase the premiums massively

464
00:21:51,520 --> 00:21:53,760
Speaker 2: to keep their business MODELIFI. We don't know.

465
00:21:54,320 --> 00:21:57,760
Speaker 1: And also the government is guaranteeing this, which ultimately means

466
00:21:57,920 --> 00:22:01,719
Speaker 1: the taxpayers are guaranteeing this. So so many problems. If

467
00:22:01,720 --> 00:22:05,359
Speaker 1: it's not managed carefully, it could become a financial parasite.

468
00:22:05,400 --> 00:22:07,159
Speaker 2: One are the flow on effects. Like we said earlier,

469
00:22:07,440 --> 00:22:09,440
Speaker 2: if you don't have certainty in your allers, no one

470
00:22:09,440 --> 00:22:11,480
Speaker 2: has certainty. But if you don't have some stability in

471
00:22:11,520 --> 00:22:14,400
Speaker 2: your employment and regular employment, and you go and take

472
00:22:14,400 --> 00:22:15,920
Speaker 2: advantage of this, and then you've got to hand the

473
00:22:16,000 --> 00:22:18,600
Speaker 2: keys back, and how many people might do that? Correct?

474
00:22:18,600 --> 00:22:19,760
Speaker 2: Because the cost of living.

475
00:22:19,680 --> 00:22:21,879
Speaker 1: Is not changing, no, and if anything's going up, I

476
00:22:21,920 --> 00:22:23,960
Speaker 1: mean I read the other day, we basically have to

477
00:22:24,200 --> 00:22:26,080
Speaker 1: get used to it. Yeah, there isn't. There is no

478
00:22:26,840 --> 00:22:28,640
Speaker 1: relief coming anytime soon.

479
00:22:28,800 --> 00:22:31,480
Speaker 2: So then if properly prices are going up the next generation,

480
00:22:31,800 --> 00:22:33,280
Speaker 2: how hard is it going to be for them to

481
00:22:33,280 --> 00:22:34,119
Speaker 2: get into the market.

482
00:22:35,160 --> 00:22:37,200
Speaker 1: Well, I'm actually going on the Today Show and I'm

483
00:22:37,240 --> 00:22:40,680
Speaker 1: talking about this in detail because the average Australian is

484
00:22:40,720 --> 00:22:43,200
Speaker 1: only going to pay off their home around age fifty nine.

485
00:22:43,680 --> 00:22:46,399
Speaker 1: And if people are looking at retiring at age sixty five,

486
00:22:46,920 --> 00:22:49,520
Speaker 1: you are only leaving six years to quickly top up

487
00:22:49,560 --> 00:22:52,439
Speaker 1: your super, which is not nearly enough. I mean, obviously

488
00:22:52,440 --> 00:22:54,760
Speaker 1: it's better than nothing at all, but if seventy percent

489
00:22:54,800 --> 00:22:57,159
Speaker 1: of your net income has gone towards a mortgage repayment

490
00:22:57,240 --> 00:22:59,359
Speaker 1: paying it off, we're going to have a generation of

491
00:22:59,440 --> 00:23:02,320
Speaker 1: yes alone their home outright, assuming they haven't refinanced, and

492
00:23:02,359 --> 00:23:04,560
Speaker 1: they haven't moved, and they've just simply followed that thirty

493
00:23:04,640 --> 00:23:06,560
Speaker 1: year term with nothing else to fall back on.

494
00:23:06,680 --> 00:23:08,560
Speaker 2: Government will probably force them to sell.

495
00:23:08,600 --> 00:23:12,400
Speaker 1: Then we'll see excess supply of properties people having being

496
00:23:12,400 --> 00:23:15,120
Speaker 1: forced to downsides. Look, Adam, you know, as always I

497
00:23:15,200 --> 00:23:18,400
Speaker 1: really value your wise advice. You know you look after

498
00:23:18,440 --> 00:23:20,639
Speaker 1: me and Tom, you look after as I said, my

499
00:23:20,640 --> 00:23:23,480
Speaker 1: family and friends. So for anyone that wants to talk

500
00:23:23,520 --> 00:23:25,920
Speaker 1: to you. What's the easiest way to get in contact

501
00:23:26,000 --> 00:23:29,000
Speaker 1: with you to talk about this opportunity or talking about

502
00:23:29,040 --> 00:23:32,199
Speaker 1: more complicated strategies like you know self mansiper fund borrowing,

503
00:23:32,280 --> 00:23:35,320
Speaker 1: debt recycling strategies, or even just checking your homelow to

504
00:23:35,320 --> 00:23:37,399
Speaker 1: see if actually is a competitive rate, Like what's the

505
00:23:37,440 --> 00:23:39,160
Speaker 1: easiest way to go directly to you?

506
00:23:39,160 --> 00:23:42,760
Speaker 2: Look? Email, phone is best. We've also got the website

507
00:23:42,760 --> 00:23:44,680
Speaker 2: where you can book an appointment through the website.

508
00:23:44,720 --> 00:23:46,480
Speaker 1: Oh great, And there's no charge to come and see

509
00:23:46,520 --> 00:23:47,240
Speaker 1: you or speak to you.

510
00:23:47,280 --> 00:23:49,560
Speaker 2: No, we don't charge any fees on the broking side

511
00:23:49,640 --> 00:23:53,679
Speaker 2: or the financial planning side, not for initial consultations. The

512
00:23:53,720 --> 00:23:56,119
Speaker 2: planning side there can be, but that's a separate discussion

513
00:23:56,160 --> 00:23:57,920
Speaker 2: if you're after that. But on the broking side, we

514
00:23:58,040 --> 00:24:00,080
Speaker 2: never charge fees and you work.

515
00:24:00,080 --> 00:24:02,199
Speaker 1: With your in house financial planner so that you're all

516
00:24:02,200 --> 00:24:05,080
Speaker 1: singing off the same page and helping clients not just

517
00:24:05,160 --> 00:24:07,320
Speaker 1: pay off their home and correct but also building.

518
00:24:07,359 --> 00:24:09,520
Speaker 2: Working and pulling in the one direction for our cents.

519
00:24:09,760 --> 00:24:11,639
Speaker 1: Yeah, thank you so much. I will make sure that

520
00:24:11,680 --> 00:24:14,679
Speaker 1: I put your contact details. Hopefully no one spam or

521
00:24:14,680 --> 00:24:16,359
Speaker 1: prank calls, but I will make sure your details are

522
00:24:16,400 --> 00:24:19,480
Speaker 1: obviously securely in the podcast notes for everyone to reach

523
00:24:19,480 --> 00:24:21,919
Speaker 1: out to. And you know, please know that if you

524
00:24:21,960 --> 00:24:24,280
Speaker 1: see Adam, Sweet Adam, don't even need to mention my name,

525
00:24:24,320 --> 00:24:27,280
Speaker 1: as this is not sponsored in any way whatsoever. Adam

526
00:24:27,359 --> 00:24:29,920
Speaker 1: is just a very trusted resource and I have trust,

527
00:24:30,000 --> 00:24:32,680
Speaker 1: major trust issues with people, So having Adam on the

528
00:24:32,680 --> 00:24:35,199
Speaker 1: show means a lot to me because they're not many

529
00:24:35,240 --> 00:24:37,399
Speaker 1: people I do trust, and I've known you for twenty

530
00:24:37,480 --> 00:24:37,960
Speaker 1: years now.

531
00:24:38,800 --> 00:24:39,520
Speaker 2: I love coming on.

532
00:24:40,280 --> 00:24:42,639
Speaker 1: All right, everyone, thank you so much for listening today's episode.

533
00:24:42,640 --> 00:24:44,640
Speaker 1: I'd love to hear what your thoughts and feelings are

534
00:24:44,840 --> 00:24:47,080
Speaker 1: about this new scheme, whether you think it's going to

535
00:24:47,160 --> 00:24:50,560
Speaker 1: help or hinder our economy, and whether you're actually going

536
00:24:50,600 --> 00:24:53,000
Speaker 1: to take it up yourself or whether you have friends

537
00:24:53,000 --> 00:24:54,920
Speaker 1: that will take it up. I'd love to hear your feedback,

538
00:24:54,960 --> 00:24:57,040
Speaker 1: so send me a dan on Instagram. Let me know

539
00:24:57,040 --> 00:24:58,480
Speaker 1: what you think of this episode, and of course, what

540
00:24:58,560 --> 00:25:01,760
Speaker 1: other questions you might have for or actually even for Adam.

541
00:25:01,840 --> 00:25:03,439
Speaker 1: You know, how would you like me to pick Adam's

542
00:25:03,440 --> 00:25:06,800
Speaker 1: brain for the next Ask Adam episode. In the meantime,

543
00:25:06,880 --> 00:25:08,639
Speaker 1: have a brilliant week and I look forward to checking

544
00:25:08,680 --> 00:25:10,640
Speaker 1: and touching base with you at the end of the week.

545
00:25:10,760 --> 00:25:13,879
Speaker 1: For start here, the special mini series within Sugar Mama's

546
00:25:13,880 --> 00:25:18,480
Speaker 1: Fireplay where I get to answer your burning questions about

547
00:25:18,520 --> 00:25:21,520
Speaker 1: your financial goals and dreams. All right, have a brilliant week.

548
00:25:21,640 --> 00:25:23,320
Speaker 1: Chat connect again on Friday.

549
00:25:23,440 --> 00:25:23,919
Speaker 2: Cha for now