1 00:00:10,039 --> 00:00:13,000 Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm 2 00:00:13,039 --> 00:00:16,680 Speaker 1: James Kirkby. Welcome aboard everybody. Now, if you're interested in 3 00:00:16,760 --> 00:00:19,440 Speaker 1: property investment, you may already have heard of Nathan Birch 4 00:00:19,760 --> 00:00:21,720 Speaker 1: and he's Being Invested Group. He's one of the most 5 00:00:21,800 --> 00:00:25,000 Speaker 1: high profile property investors in the country. Only hundreds of 6 00:00:25,079 --> 00:00:27,960 Speaker 1: residential properties, many of them at the lower end of 7 00:00:28,000 --> 00:00:30,880 Speaker 1: the market, including units and apartments, which is the area 8 00:00:30,920 --> 00:00:32,720 Speaker 1: actually I want to talk to him about on the 9 00:00:32,760 --> 00:00:35,160 Speaker 1: show today. He has a business, of course, it's called 10 00:00:35,200 --> 00:00:38,279 Speaker 1: Be Investors, and he encourages people and helps people out 11 00:00:38,400 --> 00:00:41,400 Speaker 1: to get invested in property and actually to buy multiple 12 00:00:41,440 --> 00:00:44,920 Speaker 1: properties if that suits you. I wanted to talk to 13 00:00:45,000 --> 00:00:48,440 Speaker 1: him though, particularly about this line of inquiry that perhaps 14 00:00:49,320 --> 00:00:52,239 Speaker 1: as investors we can get into the market for a 15 00:00:52,280 --> 00:00:54,360 Speaker 1: lot less than we think right of the average house 16 00:00:54,520 --> 00:00:56,400 Speaker 1: is a million dollars now and everyone says, oh a 17 00:00:56,440 --> 00:00:58,200 Speaker 1: million dollars is an awful lot to put in as 18 00:00:58,200 --> 00:01:01,360 Speaker 1: an investor as a proportion of my investing or my 19 00:01:01,760 --> 00:01:04,520 Speaker 1: asset allocation. How are you and Nathan? Thanks for coming 20 00:01:04,520 --> 00:01:04,959 Speaker 1: on the show. 21 00:01:05,560 --> 00:01:08,280 Speaker 2: Well, thank you, James. I appreciate the warm introduction and 22 00:01:08,400 --> 00:01:09,160 Speaker 2: thanks having me on the. 23 00:01:09,120 --> 00:01:11,920 Speaker 1: Show really nice to have you. So let's just talk 24 00:01:11,959 --> 00:01:15,880 Speaker 1: about that for an entry point. As such, many people 25 00:01:15,880 --> 00:01:17,640 Speaker 1: think property is too hard to get into because it's 26 00:01:17,680 --> 00:01:21,400 Speaker 1: become so expensive. The average home in the big cities 27 00:01:21,440 --> 00:01:23,720 Speaker 1: is a million dollars, so people are thinking, oh, you know, 28 00:01:24,120 --> 00:01:26,479 Speaker 1: it's an awful lot for me to go in on 29 00:01:26,480 --> 00:01:29,479 Speaker 1: one line of inquiry, one asset to buy that much. 30 00:01:29,680 --> 00:01:33,840 Speaker 1: But you really do You've worked and this is your area, 31 00:01:34,160 --> 00:01:39,240 Speaker 1: lower entry level. So is there a figure that is 32 00:01:39,240 --> 00:01:41,959 Speaker 1: a feasible figure for investors to think of instead of 33 00:01:41,959 --> 00:01:43,080 Speaker 1: a million dollars? 34 00:01:43,680 --> 00:01:46,399 Speaker 2: Yeah, And when I think a million dollars, I think 35 00:01:46,440 --> 00:01:48,520 Speaker 2: a block of unit, so I think a big I agree, 36 00:01:48,560 --> 00:01:53,000 Speaker 2: I think something very substantial for that. Most people, especially today, 37 00:01:53,120 --> 00:01:56,720 Speaker 2: like my career buying property, started buying little housing commission 38 00:01:56,760 --> 00:01:59,120 Speaker 2: stuff in western Sydney. Back in the day, I was 39 00:01:59,120 --> 00:02:01,440 Speaker 2: playing two hundred grand for these little houses that are 40 00:02:01,480 --> 00:02:05,960 Speaker 2: now a million dollars for a fibro nothing attractive at all. 41 00:02:06,440 --> 00:02:08,560 Speaker 2: So a million dollars doesn't get you much out there 42 00:02:08,760 --> 00:02:11,639 Speaker 2: in the greater market. But I look for value. I'm 43 00:02:11,639 --> 00:02:13,880 Speaker 2: just a value and investor, and I look for things 44 00:02:13,880 --> 00:02:16,880 Speaker 2: that have got a high intrinsic value. There's three things 45 00:02:17,160 --> 00:02:19,200 Speaker 2: that I think are important when buying a property. One 46 00:02:19,240 --> 00:02:21,680 Speaker 2: is a cashload element of it, because I'm not a 47 00:02:21,720 --> 00:02:24,080 Speaker 2: fan of a proponent of negative gearing. I think having 48 00:02:24,080 --> 00:02:29,000 Speaker 2: a positive cashlows better the others to buy below market. 49 00:02:29,120 --> 00:02:31,360 Speaker 2: But the big thing that I look at today is 50 00:02:31,800 --> 00:02:35,320 Speaker 2: buying below rebuild costs. And I was talking to one 51 00:02:35,360 --> 00:02:36,959 Speaker 2: of my investors the other day and they were talking 52 00:02:36,960 --> 00:02:39,200 Speaker 2: about buying building a granny flat and it was going 53 00:02:39,240 --> 00:02:42,040 Speaker 2: to cost three hundred thousand dollars and I was like, no, 54 00:02:42,200 --> 00:02:43,919 Speaker 2: don't do that right for a grainy flat, it's a 55 00:02:43,919 --> 00:02:46,160 Speaker 2: lot of money for three hundre grand I'd expect to 56 00:02:46,200 --> 00:02:48,880 Speaker 2: have a whole property. And the stuff that I look 57 00:02:48,919 --> 00:02:51,280 Speaker 2: at today, you can still buy in capital cities throughout 58 00:02:51,320 --> 00:02:54,000 Speaker 2: the country and you can still buy it Like I think, 59 00:02:54,000 --> 00:02:55,720 Speaker 2: if I can pick up something for two hundred and 60 00:02:55,800 --> 00:02:58,840 Speaker 2: three hundred thousand, you're buying it below rebuild cost today. 61 00:02:58,960 --> 00:03:01,480 Speaker 2: And that's very active to me because at the nside, 62 00:03:01,560 --> 00:03:03,960 Speaker 2: risk is removed from that and. 63 00:03:03,919 --> 00:03:05,960 Speaker 1: It's a very attractive to any investor like who's done 64 00:03:05,960 --> 00:03:08,880 Speaker 1: their homeworker, who knows the sort of textbook economics. If 65 00:03:08,880 --> 00:03:13,440 Speaker 1: something is cheaper than its replacement cost. Well, the chances 66 00:03:13,440 --> 00:03:15,440 Speaker 1: are you've come in at a very good point right 67 00:03:15,440 --> 00:03:20,359 Speaker 1: in the property market. So what types of properties nationwide 68 00:03:21,480 --> 00:03:23,600 Speaker 1: at the moment fit to build there in terms of 69 00:03:24,280 --> 00:03:27,400 Speaker 1: replacement cost or less than replacement cost. 70 00:03:28,480 --> 00:03:31,400 Speaker 2: It's definitely getting a lot harder out there to do so, 71 00:03:32,880 --> 00:03:34,960 Speaker 2: going back twelve months ago, there was a lot more 72 00:03:35,000 --> 00:03:37,240 Speaker 2: than there is today today. I'm picking up in the 73 00:03:37,320 --> 00:03:40,040 Speaker 2: large capital city still, it's hard to buy in Brisbane 74 00:03:40,640 --> 00:03:43,760 Speaker 2: that I was picking up. Ninety eight percent of the 75 00:03:43,800 --> 00:03:46,320 Speaker 2: stuff five years ago was two hundred and fifty or 76 00:03:46,360 --> 00:03:50,760 Speaker 2: less in Brisbane Gold Coast market. Now there's nothing around there, 77 00:03:50,960 --> 00:03:53,840 Speaker 2: maybe one every six months. There's a lot of stuff 78 00:03:53,840 --> 00:03:56,160 Speaker 2: in Melbourne that you can buy from one fifty to 79 00:03:56,440 --> 00:04:00,640 Speaker 2: three hundred thousand. Melbourne's copped a beating over last few years. 80 00:04:01,120 --> 00:04:03,320 Speaker 2: I'm buying in Sydney still for three hundred and three 81 00:04:03,360 --> 00:04:05,560 Speaker 2: fifty thousand. You get like a two bendrom munit in 82 00:04:05,600 --> 00:04:07,640 Speaker 2: Sydney for that prize, maybe rent for four hundred and 83 00:04:07,640 --> 00:04:09,120 Speaker 2: four to fifty a weeks, so the cash flow is 84 00:04:09,200 --> 00:04:12,040 Speaker 2: quite strong. I can buy in a large regional hubs 85 00:04:12,080 --> 00:04:16,400 Speaker 2: throughout the country like Cans Council. I don't buy in 86 00:04:16,480 --> 00:04:19,000 Speaker 2: today because I was picking up a lot of stuff 87 00:04:19,040 --> 00:04:21,520 Speaker 2: there for one hundred and fifty grand a year ago 88 00:04:21,880 --> 00:04:24,000 Speaker 2: and now it's four hundred thousand entry price and it's 89 00:04:24,000 --> 00:04:25,440 Speaker 2: just too it's origin. 90 00:04:25,520 --> 00:04:26,920 Speaker 1: There's really bounced, hasn't it. Yeah? 91 00:04:27,480 --> 00:04:32,240 Speaker 2: Correct, even places like Gladston. I'll buying Gladsdon five years 92 00:04:32,240 --> 00:04:35,320 Speaker 2: ago for sixty grand for little two bedroom townhouses and stuff, 93 00:04:35,320 --> 00:04:38,040 Speaker 2: and now they're selling for three fifty four hundred entry price. 94 00:04:38,120 --> 00:04:40,320 Speaker 1: So it's amazing because a lot of people on the 95 00:04:40,320 --> 00:04:43,960 Speaker 1: show they're obsessed with investment grade property, and investment grade property, 96 00:04:44,520 --> 00:04:46,640 Speaker 1: you know, tends to be at a different level. So 97 00:04:47,080 --> 00:04:50,200 Speaker 1: for the average disty, just tell us three hundred grand, right, 98 00:04:50,360 --> 00:04:52,840 Speaker 1: I've got three hundred gand and I'm interested in buying 99 00:04:52,839 --> 00:04:55,400 Speaker 1: a property. I got to the chase. What sort of 100 00:04:55,440 --> 00:04:57,760 Speaker 1: property can you get for three hundred grand in Australia 101 00:04:57,880 --> 00:04:58,240 Speaker 1: right now? 102 00:04:58,800 --> 00:05:02,560 Speaker 2: Two bedrom munits City, one bedroom unit's Capital City and 103 00:05:03,240 --> 00:05:06,520 Speaker 2: more smaller cities like say TASMANI buy houses for one 104 00:05:06,600 --> 00:05:08,800 Speaker 2: hundred and fifty two hundred grand. You can buy in 105 00:05:09,000 --> 00:05:12,480 Speaker 2: areas around Canberra for three hundred thousand for two bedroom unit. 106 00:05:12,880 --> 00:05:14,840 Speaker 2: You can buy an Adelaide for three hundred grand, three 107 00:05:14,880 --> 00:05:17,880 Speaker 2: hundred and fifty grand for two better. Perth has gone 108 00:05:17,880 --> 00:05:20,360 Speaker 2: way to my I was in Perth many years ago 109 00:05:20,560 --> 00:05:25,800 Speaker 2: picking up all the stuff. Darwin was good. Two years ago, 110 00:05:25,960 --> 00:05:29,479 Speaker 2: I picked up thousands of properties for ourselves, and now 111 00:05:29,480 --> 00:05:32,000 Speaker 2: they're just too expensive at all. Yeah. 112 00:05:32,240 --> 00:05:35,120 Speaker 1: Right, It's fascinating that it's the two largest cities that 113 00:05:35,200 --> 00:05:37,479 Speaker 1: you've mentioned, and it's also interesting every time you mentioned it, 114 00:05:37,520 --> 00:05:40,640 Speaker 1: you say two bedrooms, So tell me about that the 115 00:05:40,640 --> 00:05:43,640 Speaker 1: two This seems to be the aftermoon property investment is 116 00:05:43,800 --> 00:05:46,040 Speaker 1: is the two bedroom property because the one bedroom property 117 00:05:46,040 --> 00:05:48,520 Speaker 1: everybody walks from home? What is what's the rationale there? 118 00:05:49,520 --> 00:05:51,480 Speaker 2: When I say two better, that's like the upper side 119 00:05:51,480 --> 00:05:52,839 Speaker 2: of it. You can get a two better, you can 120 00:05:52,839 --> 00:05:54,760 Speaker 2: get it one better as well. I'm a fan of 121 00:05:54,800 --> 00:05:58,520 Speaker 2: my bedrooms. I've got a lot of my portfolio shive 122 00:05:58,720 --> 00:06:02,360 Speaker 2: four hundred properties. One hundred of them would be one betters. 123 00:06:02,680 --> 00:06:04,320 Speaker 2: And I feel like we're in a world where a 124 00:06:04,320 --> 00:06:06,680 Speaker 2: lot of people aren't married, a lot of divorced, a 125 00:06:06,720 --> 00:06:10,440 Speaker 2: lot of that migrate here just markets go strong demand 126 00:06:10,480 --> 00:06:13,039 Speaker 2: for it. If I look back at areas that have 127 00:06:13,120 --> 00:06:15,120 Speaker 2: been to with the growth that's occurred in them. A 128 00:06:15,120 --> 00:06:17,160 Speaker 2: lot of people think these properties will never go up, 129 00:06:17,279 --> 00:06:20,280 Speaker 2: or you know, there must be substandard or whatever. I 130 00:06:20,360 --> 00:06:22,600 Speaker 2: look at the Gold Coast. I was picking up houses 131 00:06:22,600 --> 00:06:25,159 Speaker 2: in the Gold Coast five years ago for five hundred 132 00:06:25,160 --> 00:06:27,280 Speaker 2: grand and are now one point four, which might think 133 00:06:27,279 --> 00:06:29,520 Speaker 2: it would be good. I don't even like those numbers. 134 00:06:30,839 --> 00:06:32,920 Speaker 2: The one and two venture munites at one hundred and 135 00:06:32,960 --> 00:06:34,560 Speaker 2: fifty two hundred green and are now like seven eight 136 00:06:34,640 --> 00:06:37,760 Speaker 2: hundred thousand, which is wild. Like the growth has been yeah, 137 00:06:37,920 --> 00:06:42,320 Speaker 2: equally as good, but yeah, there's definitely a massive market 138 00:06:42,360 --> 00:06:42,520 Speaker 2: for that. 139 00:06:42,920 --> 00:06:45,560 Speaker 1: When you look at there raw numbers across the market, 140 00:06:45,800 --> 00:06:47,839 Speaker 1: I don't just mean new numbers, I mean like the 141 00:06:47,839 --> 00:06:50,919 Speaker 1: global numbers, the nation of my numbers. It is a 142 00:06:50,960 --> 00:06:53,239 Speaker 1: lower end of the price range that's having the growth, 143 00:06:53,279 --> 00:06:57,479 Speaker 1: isn't it at this time? But that wasn't always your 144 00:06:57,720 --> 00:07:00,400 Speaker 1: That wasn't always the case, but it is the case now. 145 00:07:00,640 --> 00:07:04,520 Speaker 1: Tell us about this the five percent deposit scheme, the 146 00:07:04,600 --> 00:07:08,800 Speaker 1: universally five percent deposit scheme, which puts anyone in Australia 147 00:07:08,839 --> 00:07:11,680 Speaker 1: basically anyone who can stand up and put a check 148 00:07:11,760 --> 00:07:14,360 Speaker 1: forward can buy for the first time on a ninety 149 00:07:14,360 --> 00:07:18,840 Speaker 1: five percent mortgage. What does that mean for your zone? 150 00:07:18,960 --> 00:07:21,000 Speaker 1: For the low entry level zone? Is it good or bad? 151 00:07:23,280 --> 00:07:25,920 Speaker 1: Right because you've got more people competing? 152 00:07:26,840 --> 00:07:28,640 Speaker 2: Correct, Yeah, it's good for all the stuff that we bought, 153 00:07:28,680 --> 00:07:31,840 Speaker 2: but it's bad because getting new stock is becoming more troublesome, 154 00:07:32,280 --> 00:07:34,800 Speaker 2: I'm finding when you think about it, and it's something 155 00:07:34,840 --> 00:07:36,400 Speaker 2: I look at the low end of the market like 156 00:07:36,800 --> 00:07:39,160 Speaker 2: buying different segments of the market. I'd certainly go to 157 00:07:39,200 --> 00:07:41,680 Speaker 2: the higher but everyone knows me for buying the cheap stuff. 158 00:07:41,880 --> 00:07:45,320 Speaker 2: That's what I love the most. But looking at I 159 00:07:45,320 --> 00:07:47,480 Speaker 2: always think about who are the people that are buying 160 00:07:47,520 --> 00:07:49,440 Speaker 2: the property, who would be the person as the first 161 00:07:49,480 --> 00:07:52,720 Speaker 2: time buyer? What would the incomes look like? When factoring 162 00:07:53,040 --> 00:07:55,000 Speaker 2: is an area of good and I think about what 163 00:07:55,040 --> 00:07:58,440 Speaker 2: could future growth potentially look like and a factor in 164 00:07:58,600 --> 00:08:01,480 Speaker 2: what could the incomes. It's on a debt perspective for 165 00:08:02,160 --> 00:08:04,960 Speaker 2: so we've seen interest rates go up, We've seen lifestyles 166 00:08:05,000 --> 00:08:08,080 Speaker 2: get stretched out with inflation and whatnot. So I think 167 00:08:08,320 --> 00:08:11,600 Speaker 2: what would the average income in a location service for 168 00:08:11,800 --> 00:08:15,280 Speaker 2: debt And when we look at you know, people locked 169 00:08:15,280 --> 00:08:17,680 Speaker 2: out of the million dollar market, people locked out two 170 00:08:17,680 --> 00:08:20,040 Speaker 2: million dollar market, and you get a nice to get 171 00:08:20,080 --> 00:08:23,640 Speaker 2: a standard Aussie red brick house from nineteen ninety five 172 00:08:23,720 --> 00:08:26,360 Speaker 2: hundred fifty six square meter blog in a lot of 173 00:08:26,920 --> 00:08:29,080 Speaker 2: locations a little bit in one and a half million bucks, 174 00:08:29,200 --> 00:08:31,840 Speaker 2: especially here in Sydney, and that's in Blacktown or Penrith 175 00:08:31,920 --> 00:08:35,040 Speaker 2: or something. To find the ability to get a seven 176 00:08:35,120 --> 00:08:38,160 Speaker 2: hundred grand unit or a five hundred green unit. There's 177 00:08:38,200 --> 00:08:41,319 Speaker 2: more people at the bottom end that can afford that 178 00:08:42,080 --> 00:08:44,120 Speaker 2: when you're adding sentence in there, Like you think about 179 00:08:44,160 --> 00:08:46,400 Speaker 2: a three hundred grand property in a five percent depositive, 180 00:08:46,400 --> 00:08:50,319 Speaker 2: there's fifteen thousand dollars, so you can put on a credit. 181 00:08:50,320 --> 00:08:52,120 Speaker 2: Cap'm not suggesting anyone to put on a credit. 182 00:08:52,000 --> 00:08:55,680 Speaker 1: Now, but it's easy. It's easy to get in. Okay, Yeah, 183 00:08:55,760 --> 00:08:57,280 Speaker 1: I think what we'll do take a short breequad. I 184 00:08:57,280 --> 00:08:58,960 Speaker 1: really want to talk to you about is the realities 185 00:08:59,040 --> 00:09:02,440 Speaker 1: of our audience getting involved here and doing this and 186 00:09:02,480 --> 00:09:04,600 Speaker 1: what it might mean. What the day to day reality 187 00:09:04,640 --> 00:09:06,520 Speaker 1: of owning one of those properties is, Like, is it 188 00:09:06,600 --> 00:09:10,520 Speaker 1: different than owning a conventional million dollar property? Are there 189 00:09:10,559 --> 00:09:13,280 Speaker 1: issues with banks? Are there particular issues in renting them? 190 00:09:13,280 --> 00:09:15,000 Speaker 1: I'd like to hear you were just starting to tell 191 00:09:15,080 --> 00:09:17,240 Speaker 1: me about the cash flow and the sort of rental 192 00:09:17,320 --> 00:09:19,600 Speaker 1: yields you might expect, which I presume are much higher, 193 00:09:19,840 --> 00:09:33,680 Speaker 1: but let's talk about that in a moment. Hello, Welcome 194 00:09:33,720 --> 00:09:36,640 Speaker 1: back to the Australians Money Puzzle podcast. I'm James Kirby 195 00:09:36,640 --> 00:09:39,320 Speaker 1: and I'm talking to Nathan Burch, very well known property 196 00:09:39,480 --> 00:09:44,000 Speaker 1: investor and player with his b Invested group. So we 197 00:09:44,000 --> 00:09:45,960 Speaker 1: were just talking in the first segment of the show. 198 00:09:46,000 --> 00:09:48,440 Speaker 1: But something we don't talk about too often as maybe 199 00:09:48,480 --> 00:09:50,960 Speaker 1: we should when we were talking property on the Money Puzzle. 200 00:09:50,960 --> 00:09:54,400 Speaker 1: We're often talking we don't necessarily concentrate on the lower 201 00:09:54,480 --> 00:09:56,959 Speaker 1: end of the market, the entry level of the market 202 00:09:57,960 --> 00:10:01,199 Speaker 1: as investors, but in fact micro figures show that it's 203 00:10:01,200 --> 00:10:02,960 Speaker 1: the lower end of the market that has been going 204 00:10:03,000 --> 00:10:06,200 Speaker 1: better in recent times and that is accelerated to some 205 00:10:06,320 --> 00:10:09,720 Speaker 1: degree by the new universal home deposit which Nathan was 206 00:10:09,760 --> 00:10:12,720 Speaker 1: just talking about. So Nathan tell us about the yields 207 00:10:13,040 --> 00:10:16,559 Speaker 1: we could expect at this level compared to conventional yields 208 00:10:16,559 --> 00:10:18,280 Speaker 1: and investment residential property. 209 00:10:18,440 --> 00:10:21,599 Speaker 2: You know, when I'm buying a property, I want to 210 00:10:21,600 --> 00:10:23,720 Speaker 2: be mutual cash flow. Like I'm not a proponent of 211 00:10:23,840 --> 00:10:27,040 Speaker 2: negative gearing, which is quite controversial. I think out there 212 00:10:27,840 --> 00:10:30,520 Speaker 2: hates negative gearing. I hate it too, Right, So, if 213 00:10:30,559 --> 00:10:33,240 Speaker 2: I'm buying a property for three hundred thousand dollars, I'm 214 00:10:33,280 --> 00:10:35,720 Speaker 2: getting roughly four hundred fifty dollars per week, depending on 215 00:10:35,720 --> 00:10:39,559 Speaker 2: the location and what the property is. But the people's 216 00:10:39,800 --> 00:10:43,000 Speaker 2: budgets in that price range is generally four to fifty 217 00:10:43,200 --> 00:10:46,080 Speaker 2: five hundred and four hundred in that scope. So that 218 00:10:46,080 --> 00:10:49,360 Speaker 2: should cover your mortgage, say six percent interest rate, and 219 00:10:49,440 --> 00:10:55,240 Speaker 2: cover any associated cost cancer rates, water rates, sporat of flease, insurance, whatever. 220 00:10:55,360 --> 00:10:59,000 Speaker 1: Yeah, because the rentalers are relatively high compared to the 221 00:10:59,040 --> 00:11:01,959 Speaker 1: cost of buying the property at that level, correct, what 222 00:11:02,080 --> 00:11:05,079 Speaker 1: were the years compared to as I said, convention in 223 00:11:05,080 --> 00:11:05,840 Speaker 1: the years. 224 00:11:06,080 --> 00:11:08,240 Speaker 2: Are They're much higher. And I think about it even 225 00:11:08,280 --> 00:11:11,000 Speaker 2: down to units. We spoke earlier on the show about 226 00:11:11,120 --> 00:11:14,400 Speaker 2: buying two bedroom units and versus like houses, and I've 227 00:11:14,440 --> 00:11:16,599 Speaker 2: seen in a lot of areas where the units have 228 00:11:16,800 --> 00:11:19,120 Speaker 2: outstripped the growth of the houses. It can be in 229 00:11:19,160 --> 00:11:22,080 Speaker 2: the reverse as well. But if I look at the 230 00:11:22,120 --> 00:11:24,439 Speaker 2: cost of a house for eight hundred grand, you might 231 00:11:24,440 --> 00:11:26,640 Speaker 2: get six hundred dollars per week. We might gut a 232 00:11:26,720 --> 00:11:29,480 Speaker 2: unit for three hundred grand and get for fifty five 233 00:11:29,559 --> 00:11:31,280 Speaker 2: hundred a week. So you might only get extra one 234 00:11:31,320 --> 00:11:33,800 Speaker 2: hundred bucks a week in extra rent for the house, 235 00:11:34,240 --> 00:11:37,120 Speaker 2: but you'd be paying an extra four hundred thousand for 236 00:11:37,200 --> 00:11:39,520 Speaker 2: that property, and the yields don't work so good. So 237 00:11:39,559 --> 00:11:41,920 Speaker 2: I always think about it when I'm buying and when 238 00:11:41,920 --> 00:11:44,640 Speaker 2: my best are buying. What does the bank require from us? 239 00:11:44,679 --> 00:11:46,840 Speaker 2: And how can we keep that bank happy to keep lending. 240 00:11:47,040 --> 00:11:51,040 Speaker 1: So if you're thinking to avoid negative gearing, and if 241 00:11:51,040 --> 00:11:54,000 Speaker 1: you were thinking the bank creads were six percent, then 242 00:11:54,000 --> 00:11:55,680 Speaker 1: what sort of year would you need? What sort of 243 00:11:55,679 --> 00:12:00,959 Speaker 1: need would yield? Does that propose an investment before the demand? 244 00:12:01,720 --> 00:12:05,040 Speaker 1: I'd say around eight percent percent? Yeah, and there are 245 00:12:05,080 --> 00:12:08,520 Speaker 1: eight percent residential property yields, you tell me widely available 246 00:12:08,559 --> 00:12:09,559 Speaker 1: at that at this level. 247 00:12:10,240 --> 00:12:12,600 Speaker 2: Yeah. Yeah, they're getting smaller and smaller out there, but 248 00:12:12,679 --> 00:12:14,160 Speaker 2: they're definitely still out there. 249 00:12:14,600 --> 00:12:18,160 Speaker 1: How do the banks respond to this part of the market. 250 00:12:18,600 --> 00:12:21,280 Speaker 2: That's a very good question. That's a very good question. 251 00:12:21,640 --> 00:12:24,760 Speaker 2: I always say that the for me, the property game 252 00:12:24,840 --> 00:12:27,760 Speaker 2: is a bank's game, because the liquid that flows through 253 00:12:27,800 --> 00:12:30,000 Speaker 2: these markets is based on what the banks are putting 254 00:12:30,000 --> 00:12:32,400 Speaker 2: out there for people to borrow. So I shy away 255 00:12:32,400 --> 00:12:36,240 Speaker 2: from studio units. I shy away from any holiday type properties, 256 00:12:36,320 --> 00:12:40,400 Speaker 2: any over fifty fives, any specialized lending. I want vanilla properties, 257 00:12:40,880 --> 00:12:44,640 Speaker 2: So properties that would be in large major regional if 258 00:12:44,679 --> 00:12:48,960 Speaker 2: I'm going regional capital cities must be over forty square meters, 259 00:12:49,320 --> 00:12:52,160 Speaker 2: ideally over fifty square meters. And I never have any 260 00:12:52,200 --> 00:12:53,679 Speaker 2: issues from a learning perspective. 261 00:12:54,360 --> 00:12:56,880 Speaker 1: Tell me two things. Why don't you like the negative gearing? 262 00:12:56,960 --> 00:12:58,920 Speaker 1: And what's this about the fifty screen meters? What to 263 00:12:58,960 --> 00:13:00,680 Speaker 1: tell us? That the ruction of the different questions, but 264 00:13:00,679 --> 00:13:02,199 Speaker 1: if you can remember, if you can remember, the two 265 00:13:02,200 --> 00:13:03,319 Speaker 1: of them, might repeat them if you deal. 266 00:13:04,000 --> 00:13:07,040 Speaker 2: So negative hearing. I think about my property investing as 267 00:13:07,040 --> 00:13:09,160 Speaker 2: a business. I've always thought about it from day one. 268 00:13:09,360 --> 00:13:11,559 Speaker 2: I had a fear when starting out as an investor 269 00:13:11,640 --> 00:13:14,360 Speaker 2: twenty three years ago, what happens if follow off my job? 270 00:13:14,400 --> 00:13:17,120 Speaker 2: What happened? And I thought if I had to work 271 00:13:17,120 --> 00:13:19,360 Speaker 2: at McDonald's and it was like thirty greet a year 272 00:13:19,360 --> 00:13:21,200 Speaker 2: back in the day. I want to make sure the 273 00:13:21,200 --> 00:13:25,760 Speaker 2: properties are looking after themselves, so if anything could happen, 274 00:13:25,840 --> 00:13:29,199 Speaker 2: they could scrap negative hearing, tomorrows could change and a 275 00:13:29,280 --> 00:13:32,200 Speaker 2: lot of people could be in trouble. For me, I'm 276 00:13:32,200 --> 00:13:35,640 Speaker 2: a very it might sound crazy when I say I 277 00:13:35,679 --> 00:13:38,720 Speaker 2: want to buy hundreds of properties, but I'm very diligent 278 00:13:38,720 --> 00:13:41,280 Speaker 2: with the numbers that I buy, and so negative hearing 279 00:13:41,400 --> 00:13:43,840 Speaker 2: you wouldn't. I don't see anyone setting up a business 280 00:13:43,880 --> 00:13:47,199 Speaker 2: to lose money. So while we buy properties or assets 281 00:13:47,200 --> 00:13:49,520 Speaker 2: to lose money, it's just not a good business. 282 00:13:49,840 --> 00:13:52,600 Speaker 1: You mentioned the property should never be less than fifty squares. 283 00:13:53,520 --> 00:13:54,240 Speaker 1: What was that about. 284 00:13:54,760 --> 00:13:56,760 Speaker 2: This is the banks when they're learning, asked about the 285 00:13:56,840 --> 00:13:59,280 Speaker 2: learning and never see any challenges. I'm a big fan 286 00:13:59,320 --> 00:14:03,880 Speaker 2: of going eighty percent loan twenty percent posit, but you've 287 00:14:03,880 --> 00:14:05,839 Speaker 2: got to think about the greater market out there. Who 288 00:14:05,880 --> 00:14:07,640 Speaker 2: would be the buyer of your property, could be a 289 00:14:07,720 --> 00:14:11,120 Speaker 2: first home buyer. Morge insurance if you go less than 290 00:14:11,320 --> 00:14:14,600 Speaker 2: twenty percent deposit, they have a lot of parameters around that, 291 00:14:14,880 --> 00:14:18,520 Speaker 2: and those parameters would adhere to the security type, the risk, 292 00:14:18,960 --> 00:14:24,040 Speaker 2: by geographic location, little binding towns, whatnot. Fifty square meters 293 00:14:24,040 --> 00:14:26,320 Speaker 2: is the good size to allow for growth. 294 00:14:27,240 --> 00:14:30,560 Speaker 1: Right, So you didn't like studio, but one bedrooms were 295 00:14:31,080 --> 00:14:33,240 Speaker 1: quite loky within your guide lanes. 296 00:14:33,440 --> 00:14:35,800 Speaker 2: Yeah, between that forty to fifty. When I say I 297 00:14:35,840 --> 00:14:39,040 Speaker 2: don't like studios, it's not what i'd naturally go for 298 00:14:39,640 --> 00:14:41,840 Speaker 2: But I remember saying what someone said to me. Everyone 299 00:14:41,920 --> 00:14:45,280 Speaker 2: has their price and the price to everything, and if 300 00:14:45,280 --> 00:14:48,400 Speaker 2: I can get something so cheap, I'll take it. I've 301 00:14:48,400 --> 00:14:52,760 Speaker 2: certainly got studios, but they're not my I'll like two bedroom, 302 00:14:52,840 --> 00:14:54,240 Speaker 2: one better. Yeah. 303 00:14:54,400 --> 00:14:55,760 Speaker 1: I mean, we're in a period where you can read 304 00:14:55,840 --> 00:14:57,520 Speaker 1: just about anything, right, So they have these, we have 305 00:14:57,560 --> 00:15:01,840 Speaker 1: these amazingly little to the vacancy roots and everything would 306 00:15:01,840 --> 00:15:05,400 Speaker 1: suggest they're going to see amazingly little for a long time, 307 00:15:06,040 --> 00:15:10,360 Speaker 1: just the demographics around everything. Are there any particular passions 308 00:15:10,400 --> 00:15:12,240 Speaker 1: in terms of rentals at this end of the market. 309 00:15:12,360 --> 00:15:15,440 Speaker 1: I mean, basically, is there more trouble? Is there more defaults? 310 00:15:15,680 --> 00:15:19,080 Speaker 1: Is there more issues at this end of the market. 311 00:15:20,280 --> 00:15:24,400 Speaker 2: It's a good question. It's a common conceived idea that 312 00:15:24,520 --> 00:15:26,560 Speaker 2: you're buying a cheap properties that you can inherit a 313 00:15:26,600 --> 00:15:30,120 Speaker 2: bad tenant or whatever the case may be. Partaken in 314 00:15:30,200 --> 00:15:33,760 Speaker 2: over twenty thousand purchases over two decades, and I've seen 315 00:15:33,800 --> 00:15:36,600 Speaker 2: the good, the bad, ugly, from Vour Clues to Mount 316 00:15:36,640 --> 00:15:40,000 Speaker 2: drew It whatnot. Some of my best talents would be 317 00:15:40,040 --> 00:15:43,200 Speaker 2: in the blue collar suburbs, and I don't buy much 318 00:15:43,200 --> 00:15:46,240 Speaker 2: in the blue collar suburbs today. But some of my 319 00:15:46,280 --> 00:15:48,880 Speaker 2: best tenants that have had for like fifteen years, they 320 00:15:48,960 --> 00:15:51,400 Speaker 2: just fixed cap handle because it is their own house. 321 00:15:51,480 --> 00:15:56,080 Speaker 2: That sort of thing. I've seen bad tenants in expensive 322 00:15:56,120 --> 00:15:58,880 Speaker 2: properties fifteen hundred and two grand a week tenants, and 323 00:15:58,920 --> 00:16:02,320 Speaker 2: I've seen tenants in cheaper stuff. 324 00:16:02,400 --> 00:16:04,800 Speaker 1: Yeah, so there's no way to evidence that behavior is 325 00:16:04,840 --> 00:16:07,360 Speaker 1: any better or worse at an any price level. 326 00:16:08,040 --> 00:16:08,360 Speaker 2: Correct. 327 00:16:08,720 --> 00:16:10,720 Speaker 1: I've never seen anything about that either, but I wanted 328 00:16:10,720 --> 00:16:11,280 Speaker 1: to put it to you. 329 00:16:11,480 --> 00:16:15,680 Speaker 2: Yeah, there's certainly some areas which are very poor social 330 00:16:15,760 --> 00:16:18,280 Speaker 2: economic stuff out there would steer away from. I don't 331 00:16:18,280 --> 00:16:20,440 Speaker 2: want to go into the real deep heavy pouse and 332 00:16:20,440 --> 00:16:24,400 Speaker 2: commission stock for example. It's going to get trashed. Always 333 00:16:24,440 --> 00:16:27,440 Speaker 2: make sure you've got landlord insurance. But it's important makes 334 00:16:27,440 --> 00:16:31,040 Speaker 2: sure good company manager. And the funny thing is that 335 00:16:31,400 --> 00:16:33,240 Speaker 2: a lot of these properties that I talk about for 336 00:16:33,280 --> 00:16:36,600 Speaker 2: three hundred rand aren't old. I don't go and target 337 00:16:37,160 --> 00:16:40,080 Speaker 2: old fibro houses that need the peers fixed like they're 338 00:16:40,080 --> 00:16:42,480 Speaker 2: just ugly. A lot of these things might only be 339 00:16:42,520 --> 00:16:45,360 Speaker 2: like ten years old. There's markets out there throughout the 340 00:16:45,400 --> 00:16:48,960 Speaker 2: country where ten or ten fifteen years ago they had 341 00:16:49,080 --> 00:16:52,200 Speaker 2: en rats and those type of properties people paid too 342 00:16:52,320 --> 00:16:54,920 Speaker 2: much the market crash. You can go and pick them 343 00:16:55,000 --> 00:16:58,440 Speaker 2: up really cheap and they might only be ten years old, depreciation, 344 00:16:58,800 --> 00:17:01,160 Speaker 2: low work, and they're boom. 345 00:17:01,720 --> 00:17:05,520 Speaker 1: Right. Do you find over the years that investors are 346 00:17:05,520 --> 00:17:08,639 Speaker 1: more willing to buy interstate that they don't need to 347 00:17:08,680 --> 00:17:11,720 Speaker 1: see what they own or you know, be able to 348 00:17:11,800 --> 00:17:13,200 Speaker 1: drive past what they own anymore. 349 00:17:13,720 --> 00:17:15,400 Speaker 2: I think a lot of people are comfortable with that 350 00:17:15,520 --> 00:17:18,360 Speaker 2: a couple of reasons. I think people just can't buy 351 00:17:18,400 --> 00:17:21,160 Speaker 2: in the neighborhood. They're seeing the results that are happening 352 00:17:21,200 --> 00:17:25,000 Speaker 2: in different locations that we touched on. Places have gone crazy, 353 00:17:25,080 --> 00:17:28,119 Speaker 2: like Townsville, Perth and those sort of locations. I'm not 354 00:17:28,119 --> 00:17:31,320 Speaker 2: buying any of those locations today, but they just locations 355 00:17:31,320 --> 00:17:34,120 Speaker 2: have gone off. I think the fact that we can 356 00:17:34,160 --> 00:17:37,720 Speaker 2: have this conversation. Imagine fifteen years ago, we want to 357 00:17:37,720 --> 00:17:39,200 Speaker 2: do a talk, we'd have to get a room full 358 00:17:39,240 --> 00:17:43,000 Speaker 2: of people. Like you know, technology is tremendous. People can 359 00:17:43,000 --> 00:17:45,200 Speaker 2: get information, they click up the finger, they can walk 360 00:17:45,240 --> 00:17:47,840 Speaker 2: down the street with Google Maps. There's a lot more 361 00:17:47,880 --> 00:17:48,960 Speaker 2: comfort there from buying. 362 00:17:49,440 --> 00:17:52,480 Speaker 1: Yeah, okay, we'll take your breakfaks and we have a 363 00:17:52,840 --> 00:17:56,199 Speaker 1: quick look at locations that you may be interested in 364 00:17:56,200 --> 00:17:58,520 Speaker 1: that Nata might talk about from here rather than what 365 00:17:58,560 --> 00:17:59,879 Speaker 1: he used to buy. Where he's going to go on, 366 00:18:00,480 --> 00:18:03,000 Speaker 1: which I'm sure we'll find much more interesting. And we'll 367 00:18:03,040 --> 00:18:04,840 Speaker 1: also just take a look at some of the issues 368 00:18:05,040 --> 00:18:08,200 Speaker 1: for every investor on the agenda at the moment, which 369 00:18:08,240 --> 00:18:10,919 Speaker 1: is reflected in a lot of reader a listener questions 370 00:18:10,960 --> 00:18:12,480 Speaker 1: I should say at the moment, I mean rates have 371 00:18:12,600 --> 00:18:14,719 Speaker 1: just gone up, but lending limits of titaned and there 372 00:18:14,800 --> 00:18:22,440 Speaker 1: is the risk of CGT. We'll be back in a moment. Hello, 373 00:18:22,520 --> 00:18:25,639 Speaker 1: Welcome back to the Australians Money Puzzle Podcast. James Kirby 374 00:18:25,640 --> 00:18:28,120 Speaker 1: with Nathan Birch, first time guests on the show. Great 375 00:18:28,119 --> 00:18:31,520 Speaker 1: to talk to you, Nathan. Really interesting focus, clear session 376 00:18:31,520 --> 00:18:34,840 Speaker 1: we're having which I think people will find very interesting. Okay, 377 00:18:35,520 --> 00:18:37,159 Speaker 1: you know it used to be Perth, it used to 378 00:18:37,160 --> 00:18:39,959 Speaker 1: be Adelaide, it used to be Townsville. Clearly they've had 379 00:18:39,960 --> 00:18:42,040 Speaker 1: their run. They're probably not going to do that again 380 00:18:42,080 --> 00:18:48,560 Speaker 1: anytime soon. Looking out into twenty six twenty seven, regionally 381 00:18:48,680 --> 00:18:50,399 Speaker 1: or even parts of the cities, where do you like 382 00:18:50,440 --> 00:18:50,920 Speaker 1: at the moment. 383 00:18:51,760 --> 00:18:55,359 Speaker 2: Yeah, I'm liking where Margaret's are going as a big 384 00:18:55,480 --> 00:19:01,480 Speaker 2: big thing in Man I'm liking get too far into this. 385 00:19:01,760 --> 00:19:05,800 Speaker 2: But if someone's a doctor overseas and they come to 386 00:19:05,800 --> 00:19:08,480 Speaker 2: Australia and they go to a capital city, they may 387 00:19:08,480 --> 00:19:10,320 Speaker 2: not be a doctor when they get here. If they 388 00:19:10,359 --> 00:19:13,640 Speaker 2: go to there's pathways from to arrive, and it could 389 00:19:13,680 --> 00:19:16,160 Speaker 2: be that they work in a regional location for ten 390 00:19:16,240 --> 00:19:19,239 Speaker 2: years and they become a doctor. So there's a lot 391 00:19:19,280 --> 00:19:23,040 Speaker 2: of migration moving to specific key locations out there, and 392 00:19:23,359 --> 00:19:27,359 Speaker 2: it changes every quarter every six months, and I follow 393 00:19:27,400 --> 00:19:30,200 Speaker 2: that data which allows me to go, okay, well there's 394 00:19:30,200 --> 00:19:32,520 Speaker 2: a lot more demand that's coming into bucket. 395 00:19:32,720 --> 00:19:34,520 Speaker 1: But data is THEREBS data. 396 00:19:34,640 --> 00:19:36,919 Speaker 2: I'd have to double check the name of it, but 397 00:19:36,920 --> 00:19:40,320 Speaker 2: it's a format of digit. It's like a designated regional 398 00:19:40,680 --> 00:19:42,040 Speaker 2: migration area where in. 399 00:19:42,000 --> 00:19:44,440 Speaker 1: My school to do your time. Basically if you come 400 00:19:44,520 --> 00:19:47,359 Speaker 1: in and like what the areas are you thinking of? 401 00:19:48,080 --> 00:19:51,040 Speaker 2: Yes, So for me today, a lot of larger regional areas. 402 00:19:51,040 --> 00:19:54,240 Speaker 2: Like I'm hearing people just I'm not finding ten Worth today. 403 00:19:54,359 --> 00:19:58,720 Speaker 2: But a conversation I heard recently direct flights into the 404 00:19:58,760 --> 00:20:02,760 Speaker 2: country trends isition from an international airport terminal to a 405 00:20:02,800 --> 00:20:06,840 Speaker 2: domestic airport terminal going to Tamworth to become a nurse. 406 00:20:07,480 --> 00:20:11,840 Speaker 2: So there's a lot of large regional areas Orange Tamworth. Well, 407 00:20:11,840 --> 00:20:14,440 Speaker 2: they're those sort of places. But as you trickle through 408 00:20:14,520 --> 00:20:17,240 Speaker 2: each state, there's lots of these places. So even just 409 00:20:17,400 --> 00:20:20,040 Speaker 2: an hour and a half out of Melbourne, we've got places. 410 00:20:20,280 --> 00:20:23,520 Speaker 2: It's very controversial. So ones like more Well mob which 411 00:20:23,520 --> 00:20:26,680 Speaker 2: have been devastated economically over the last few years, is 412 00:20:26,920 --> 00:20:31,159 Speaker 2: a bit of activity with social changes. There even areas 413 00:20:31,200 --> 00:20:35,440 Speaker 2: just in Sydney. People they arrive to Australian new migrants 414 00:20:35,440 --> 00:20:38,920 Speaker 2: come here and we're getting six hundred thousand new rivals 415 00:20:38,960 --> 00:20:41,560 Speaker 2: each year, which is amazing to keep bringing more in 416 00:20:41,600 --> 00:20:44,119 Speaker 2: because it puts more demand on it are right, But 417 00:20:44,640 --> 00:20:46,440 Speaker 2: someone doesn't arrive for and say hey I'm going to 418 00:20:46,480 --> 00:20:49,080 Speaker 2: buy a property today. They're a student, they need a 419 00:20:49,080 --> 00:20:53,040 Speaker 2: permanent residency and whatnot. So areas that are designed around 420 00:20:53,119 --> 00:20:55,880 Speaker 2: migration because there's going to be the future key infrastructure 421 00:20:56,040 --> 00:21:00,360 Speaker 2: projects unlike it and stuff for you can get it 422 00:21:00,560 --> 00:21:04,679 Speaker 2: still of high value because people just turn to that. 423 00:21:04,800 --> 00:21:08,919 Speaker 2: And I'd say ninety percent of Victoria has stuff on 424 00:21:09,000 --> 00:21:09,800 Speaker 2: sale at the moment. 425 00:21:10,280 --> 00:21:12,080 Speaker 1: Yeah, so I wouldn't disagree with that. 426 00:21:12,359 --> 00:21:12,600 Speaker 2: Yeah. 427 00:21:12,880 --> 00:21:15,199 Speaker 1: The larger city is Sydney and Melbourne. Where do you 428 00:21:15,200 --> 00:21:17,680 Speaker 1: think are the sort of hunting grounds in the future for. 429 00:21:17,680 --> 00:21:22,040 Speaker 2: You Southwestern Sydney. I've bought for fifteen years through the 430 00:21:22,280 --> 00:21:26,120 Speaker 2: kember Banks Down area all the way through Mary's for example. 431 00:21:26,320 --> 00:21:29,720 Speaker 2: St Mary's has got the new train line that's connecting 432 00:21:29,840 --> 00:21:31,760 Speaker 2: to the old train network, so it's going to be 433 00:21:31,800 --> 00:21:34,760 Speaker 2: one of the biggest hubs. And once they redo this infrastructure, 434 00:21:34,800 --> 00:21:37,919 Speaker 2: then they start building twenty thirty story units which used 435 00:21:37,960 --> 00:21:43,480 Speaker 2: to be graffeited on Abandon Chops and Winner, but all 436 00:21:43,480 --> 00:21:47,000 Speaker 2: through Melbourne. But there's so much infrastructure and change happening 437 00:21:47,040 --> 00:21:51,919 Speaker 2: down there. I like buying more so than area. For me, 438 00:21:52,240 --> 00:21:55,280 Speaker 2: I like buying just the value. So someone came and 439 00:21:55,280 --> 00:21:57,880 Speaker 2: bought something for four hundred and fifty grand ten years 440 00:21:57,880 --> 00:22:00,080 Speaker 2: ago and I could buy it today for three one 441 00:22:00,119 --> 00:22:02,920 Speaker 2: hundred or three fifty. People would normally look at that 442 00:22:03,000 --> 00:22:06,119 Speaker 2: bill and also bad investment and it's like, what caused 443 00:22:06,119 --> 00:22:09,760 Speaker 2: it to happen? What's the value here of a controlling 444 00:22:09,840 --> 00:22:11,800 Speaker 2: dist so that they may up like, yes, a vigue 445 00:22:11,840 --> 00:22:13,760 Speaker 2: at the bottom and the chance for it to go. 446 00:22:14,000 --> 00:22:15,960 Speaker 1: But he says it takes a certain level of confidence, 447 00:22:16,000 --> 00:22:17,679 Speaker 1: which course you have because you've been doing it for 448 00:22:17,720 --> 00:22:21,960 Speaker 1: so long. Okay, I want to ask you one last 449 00:22:22,000 --> 00:22:24,320 Speaker 1: thing just before we go, And it's marvelous to have 450 00:22:24,400 --> 00:22:29,560 Speaker 1: your mix of macro thinking and practical thinking on the show. 451 00:22:29,600 --> 00:22:31,720 Speaker 1: So you have it sounds to me like you're both 452 00:22:31,720 --> 00:22:33,760 Speaker 1: a top down and bottom up. Most people are one 453 00:22:33,800 --> 00:22:36,240 Speaker 1: or the other. I mean you have the coumbo. Anything 454 00:22:36,840 --> 00:22:39,920 Speaker 1: on the agenda that you are concerned about. For property investors, 455 00:22:39,920 --> 00:22:42,359 Speaker 1: I mentioned rates are going Oh, I mean that's not good. 456 00:22:42,760 --> 00:22:45,800 Speaker 1: There's tighter lending limits which is not good. And there 457 00:22:45,880 --> 00:22:49,720 Speaker 1: is this specific risk that's the CGD CGT Capital gainst 458 00:22:49,760 --> 00:22:54,560 Speaker 1: Tax inquiry happening next month, with the distinct risk now 459 00:22:54,600 --> 00:22:58,200 Speaker 1: that the government will zone in on CGT what you 460 00:22:58,280 --> 00:23:01,840 Speaker 1: might call CGT. I did on CGT for property investors 461 00:23:01,840 --> 00:23:03,399 Speaker 1: and it won't be as good in the future. Are 462 00:23:03,440 --> 00:23:07,640 Speaker 1: any of those issues for you? 463 00:23:07,680 --> 00:23:10,520 Speaker 2: Not for me? I think TH's tackle the CGT one 464 00:23:10,720 --> 00:23:13,480 Speaker 2: for starters. My thoughts on it is I'm not a 465 00:23:13,520 --> 00:23:15,360 Speaker 2: big fan of selling assets. I just want to buy them, 466 00:23:15,359 --> 00:23:18,600 Speaker 2: so you know, I'm not thinking about that. A lot 467 00:23:18,640 --> 00:23:21,600 Speaker 2: of the time. When they do adjust tax, it can 468 00:23:21,640 --> 00:23:25,680 Speaker 2: be grandfather so that could be for existing investors, which 469 00:23:25,680 --> 00:23:28,359 Speaker 2: I think probably be on the table, but who knows. 470 00:23:28,600 --> 00:23:31,440 Speaker 2: I don't think it's going to change anything from more 471 00:23:31,480 --> 00:23:33,720 Speaker 2: stop flowing out. If anything, people may not want to 472 00:23:33,720 --> 00:23:36,480 Speaker 2: be selling for that period of time. There's been times 473 00:23:36,880 --> 00:23:38,960 Speaker 2: that I've seen in my investing career, like going back 474 00:23:39,000 --> 00:23:42,119 Speaker 2: fifteen years ago, maybe twenty years ago, Bob Carr changed 475 00:23:42,160 --> 00:23:44,080 Speaker 2: the sale or tax. He put like a stampggy when 476 00:23:44,080 --> 00:23:48,040 Speaker 2: you sell the property, and that was quickly repealed within 477 00:23:48,080 --> 00:23:51,760 Speaker 2: a twelve period. For me, I don't see it big 478 00:23:51,920 --> 00:23:54,639 Speaker 2: by they scraped. Negative gearing might have an impact, but 479 00:23:54,680 --> 00:23:57,639 Speaker 2: then now that have other flow and impacts. Negative gearing 480 00:23:58,440 --> 00:24:00,960 Speaker 2: could take investors out at the mark, but who's going 481 00:24:01,000 --> 00:24:03,160 Speaker 2: to be able to supply the affordable housing for people? 482 00:24:03,160 --> 00:24:06,320 Speaker 2: Would pressure on brand If anything took Stocky out of 483 00:24:06,359 --> 00:24:07,840 Speaker 2: the market, that made my rents of jobs, so I 484 00:24:07,960 --> 00:24:11,160 Speaker 2: get more cash flows. So the capitalist part of you sid, 485 00:24:12,400 --> 00:24:15,440 Speaker 2: I'm not too fast with the CGT. I think an 486 00:24:15,440 --> 00:24:20,040 Speaker 2: election discussion. Yeah, okay, very good. Look, thank you very much, 487 00:24:20,040 --> 00:24:22,480 Speaker 2: and thanks for coming on the show. Really interesting. I 488 00:24:22,520 --> 00:24:24,960 Speaker 2: wanted to just zone in on on that area. You've 489 00:24:24,960 --> 00:24:27,280 Speaker 2: been great to concentrate on it. Thank you very much. 490 00:24:27,320 --> 00:24:30,040 Speaker 1: That's Nathan Birch of the b Investor Group. We'll have 491 00:24:30,080 --> 00:24:30,480 Speaker 1: you on again. 492 00:24:30,520 --> 00:24:32,960 Speaker 2: Thanks Nathan, thank you very much, James. I appreciate you 493 00:24:33,119 --> 00:24:33,680 Speaker 2: having me on the. 494 00:24:33,600 --> 00:24:36,399 Speaker 1: Show and thanks for listening folks. Today's show was produced 495 00:24:36,440 --> 00:24:39,480 Speaker 1: by Lias Sammon Glue And let's have some correspondence the 496 00:24:39,520 --> 00:24:41,919 Speaker 1: Money Puzzle at the Australian dot com dot u. I 497 00:24:41,960 --> 00:24:44,600 Speaker 1: do have some property questions. I'm collecting them and we 498 00:24:44,680 --> 00:24:46,600 Speaker 1: might take a look at some of those next week. 499 00:24:46,640 --> 00:24:49,120 Speaker 1: And we also have lots of general investment questions of course, 500 00:24:49,119 --> 00:24:52,000 Speaker 1: which I will deal with on Thursday. Talk to you soon.