WEBVTT - Encore: Five ways to buy your first home sooner 0:00:00.440 --> 0:00:03.139 Hello and welcome to It All Adds Up the podcast 0:00:03.140 --> 0:00:05.239 where we chat about money, how to get it, how 0:00:05.240 --> 0:00:07.850 to spend it, and how to invest it. I'm senior 0:00:07.850 --> 0:00:11.690 economics writer Jess Irvine, and you're listening to our summer series, 0:00:11.690 --> 0:00:14.600 where we're replaying some of our hottest hits to help 0:00:14.600 --> 0:00:18.650 you get in shipshape financial form for 2023. It all 0:00:18.650 --> 0:00:21.680 adds Up will resume normal programming in February with a 0:00:21.680 --> 0:00:24.860 brand new season full of money saving tips and insights. 0:00:25.070 --> 0:00:37.850 So until then, sit back, relax and enjoy. Hello and 0:00:37.850 --> 0:00:40.460 welcome to It All Adds Up the podcast where we 0:00:40.460 --> 0:00:43.129 chat about money, how to get it, how to spend it, 0:00:43.130 --> 0:00:45.949 and how to invest it, and seek to demystify the 0:00:45.950 --> 0:00:50.480 world of finance and investing. I'm senior economics writer Jess Irvine, and. 0:00:50.479 --> 0:00:52.910 I'm money editor Dom Powell. And for our first episode, 0:00:52.909 --> 0:00:55.190 we've decided we may as well just dive into perhaps 0:00:55.190 --> 0:00:58.459 the biggest topic in personal finance, the very vexed question 0:00:58.460 --> 0:01:00.830 of home ownership. We're going to take a look at 0:01:00.830 --> 0:01:02.570 how much it costs to buy a home in Australia 0:01:02.570 --> 0:01:04.550 these days and strategies to help you or a loved 0:01:04.550 --> 0:01:05.480 one get a foot in the door. 0:01:05.750 --> 0:01:07.850 We're also going to be sharing some of our own 0:01:07.850 --> 0:01:11.509 personal stories of getting into the housing market and things 0:01:11.510 --> 0:01:14.450 that we wish we knew before taking the plunge. And 0:01:14.450 --> 0:01:17.000 later in the episode, I'll be offering my budget tip 0:01:17.000 --> 0:01:18.800 of the week, which is going to be a regular 0:01:18.800 --> 0:01:22.040 feature to help you cope with the rising costs of living. 0:01:22.250 --> 0:01:24.649 But first, just a reminder that the information we're about 0:01:24.650 --> 0:01:27.140 to discuss is general in nature and does not take 0:01:27.140 --> 0:01:30.649 into account your personal financial situation, goals or objectives. 0:01:31.100 --> 0:01:34.490 Yep, good point. Now we don't know each other too 0:01:34.490 --> 0:01:37.400 well just yet. But I knew I was super impressed 0:01:37.400 --> 0:01:39.860 with you when I'd heard that you'd bought your first 0:01:39.860 --> 0:01:42.590 home at some tender age. I'm not even sure. 0:01:42.709 --> 0:01:43.730 I was 23. 0:01:44.030 --> 0:01:47.300 23. And I think that's quite impressive. And I think 0:01:47.300 --> 0:01:50.360 that is quite anomalous in today's market. So I just 0:01:50.420 --> 0:01:53.420 wanted to ask you, you know, what was your experience 0:01:53.420 --> 0:01:56.450 of purchasing a home? How did you decide so early 0:01:56.450 --> 0:01:58.940 in life that you were going to even try? 0:01:59.810 --> 0:02:04.040 Well, look, my experience is quite unique. Definitely not the 0:02:04.040 --> 0:02:07.910 experience of of most people out there. The reason that I, 0:02:08.300 --> 0:02:11.840 I owned property at the tender age of 23 is 0:02:11.840 --> 0:02:15.050 because I got quite lucky with a little thing called cryptocurrency. 0:02:15.290 --> 0:02:16.220 You went to the moon? 0:02:16.550 --> 0:02:19.100 I did. I went to the moon. I was at 0:02:19.100 --> 0:02:21.020 the right place at the right time. I do not 0:02:21.020 --> 0:02:24.620 profess to be an investing genius. I just got curious 0:02:25.400 --> 0:02:28.820 in the world of crypto at the start of 2017, 0:02:29.990 --> 0:02:33.920 rode the market to a decent point, sold out and 0:02:34.400 --> 0:02:36.800 made a decent enough enough money that I could start 0:02:36.800 --> 0:02:39.770 actually thinking about home ownership. And before that it wasn't 0:02:39.770 --> 0:02:42.020 even on the cards. It wasn't even something that I 0:02:42.020 --> 0:02:46.040 was thinking I would do anytime soon. But after that, 0:02:46.040 --> 0:02:48.950 you know that that fateful year I was sort of 0:02:48.950 --> 0:02:51.110 in a position where I could start to think about 0:02:51.110 --> 0:02:55.760 actually buying a home. And then in about 2018, 2019, 0:02:55.760 --> 0:02:57.980 I started to look and bought a building, an apartment 0:02:57.980 --> 0:03:00.230 in in Melbourne in 2019. 0:03:00.470 --> 0:03:02.600 That's funny because that ended we ended up buying in 0:03:02.600 --> 0:03:05.030 the same year because I bought my first home in 0:03:05.389 --> 0:03:11.540 late 2019. So snap at the tender age of about 39. 0:03:11.570 --> 0:03:13.339 I think I was. 0:03:13.490 --> 0:03:14.450 Still a tender age. 0:03:14.960 --> 0:03:17.510 Did you turn up to a whole bunch of auctions 0:03:17.510 --> 0:03:20.030 and get knocked back? What was it like for you? 0:03:20.060 --> 0:03:23.600 Yeah, well, it was interesting. I am. So I should 0:03:23.600 --> 0:03:25.340 also add, because I don't want to be one of 0:03:25.340 --> 0:03:29.300 those man buys home at 23 from crypto savings like 0:03:29.570 --> 0:03:31.880 that is true. But I also had help from my parents, 0:03:31.880 --> 0:03:33.350 so there was a bit of both. Like I don't 0:03:33.350 --> 0:03:34.880 want I just want to make that very clear. I'm not, 0:03:34.880 --> 0:03:37.730 you know, some sort of 1 to 1 in, but 0:03:38.300 --> 0:03:41.150 I went to a lot of auctions. My first, the 0:03:41.150 --> 0:03:44.240 first one I bid at, I was quite demoralised to 0:03:44.240 --> 0:03:46.790 find out that the sort of price that I was 0:03:46.790 --> 0:03:49.850 hoping to to get the place that was just eclipsed very, 0:03:49.850 --> 0:03:52.700 very quickly. But in the end, I bought my home 0:03:52.700 --> 0:03:54.500 in a pretty weird way. I put it in an 0:03:54.500 --> 0:03:56.630 offer and then a number of other people put it 0:03:56.630 --> 0:03:58.670 on offer and we ended up having a boardroom auction. 0:03:58.760 --> 0:03:59.480 What's that? 0:03:59.720 --> 0:04:02.480 They sit you around in the boardroom of the of 0:04:02.480 --> 0:04:05.180 the Real estate agents office, and there was about three 0:04:05.180 --> 0:04:07.910 other people there for the people there. And you have 0:04:07.910 --> 0:04:09.830 an auction. But instead of being out in the street, 0:04:09.830 --> 0:04:11.950 you just sitting there at the put in the boardroom. 0:04:11.960 --> 0:04:14.330 It was bizarre. It was such a strange experience. But 0:04:14.330 --> 0:04:17.450 in the end I won that. So yeah, Then I 0:04:17.450 --> 0:04:19.820 bought my place at the end of end of 2019. 0:04:20.450 --> 0:04:22.640 Yeah. And I hope by sharing our stories of how, 0:04:22.640 --> 0:04:25.400 you know, we've got into home ownership, it's not I'm 0:04:25.400 --> 0:04:28.070 just incredibly aware of the privilege that I had in 0:04:28.070 --> 0:04:31.310 sort of having a good, decent income to accumulate my 0:04:31.310 --> 0:04:35.180 own savings. I didn't have any sort of cash from 0:04:35.180 --> 0:04:38.210 mum and dad, but I did have them go guarantor 0:04:38.210 --> 0:04:41.060 on my loan, which is something which we'll discuss later 0:04:41.060 --> 0:04:43.820 when we get to sort of some potential solutions if 0:04:43.820 --> 0:04:47.180 people are looking for ways to get in. I had 0:04:47.180 --> 0:04:51.210 my deposit ready to go for a couple of years actually, 0:04:51.210 --> 0:04:53.150 and I was just watching the market and I actually 0:04:53.150 --> 0:04:56.000 spent a lot of time on the sidelines just, you know, 0:04:56.690 --> 0:04:59.120 prices would go up. So I'd go, Oh, that's okay. 0:04:59.120 --> 0:05:01.789 I can live in an apartment. That's okay. Maybe, you know, 0:05:01.790 --> 0:05:03.620 I can just not have a balcony. And I kept 0:05:03.620 --> 0:05:06.770 trying to adjust down the, oh, I can buy further out. 0:05:07.100 --> 0:05:09.440 And then really just at the end, sort of had 0:05:09.440 --> 0:05:11.240 to go to the bank and say, what is the 0:05:11.240 --> 0:05:14.840 maximum amount you will lend to me? Like it's getting 0:05:14.839 --> 0:05:16.820 away from me. And then I did sort of end 0:05:16.820 --> 0:05:21.260 up looking for slightly more expensive properties. I paid about 0:05:21.260 --> 0:05:27.290 $870,000 for a two bedroom apartment. So in 2019, and 0:05:27.290 --> 0:05:29.000 I think the bank was going to lend me a 0:05:29.000 --> 0:05:32.809 million plus, but I sort of just decided that wasn't necessary. 0:05:33.620 --> 0:05:36.640 I did get up. We did an auction. So the 0:05:36.640 --> 0:05:38.860 week before I bought, I sort of turned up and 0:05:38.860 --> 0:05:41.470 I was have my maximum bid. They say you should 0:05:41.470 --> 0:05:43.300 write it on a piece of paper in your pocket. 0:05:43.540 --> 0:05:46.240 So I put my number and then during the auction, 0:05:46.240 --> 0:05:49.659 I proceeded to bid substantial proportion above one number as 0:05:49.690 --> 0:05:50.080 the do. 0:05:50.110 --> 0:05:52.630 Yeah, I think that's just the way it goes for 0:05:52.630 --> 0:05:53.469 any auction, right? 0:05:53.650 --> 0:05:58.090 Exactly. And the successful bidder was an investor. Basically the 0:05:58.089 --> 0:06:01.090 classic story of sort of just having way more money 0:06:01.420 --> 0:06:03.940 than I. So then I started looking about a suburb 0:06:03.940 --> 0:06:07.180 out from where I was originally and happy Days. So 0:06:07.210 --> 0:06:09.790 the point of sort of picking this is our first topic, 0:06:10.120 --> 0:06:13.340 I think in my mind is that really home ownership, 0:06:13.360 --> 0:06:16.839 you know, the decisions that you make about property will 0:06:16.839 --> 0:06:19.750 be one of the biggest factors that will influence your 0:06:19.750 --> 0:06:25.510 future financial capability and your wealth. It's just so, so key. 0:06:25.660 --> 0:06:29.770 Absolutely. Having a mortgage is sort of just makes you 0:06:29.770 --> 0:06:32.350 think about everything differently, I think, in terms of your 0:06:32.500 --> 0:06:36.070 personal finances. Like, you know, just when you have such 0:06:36.070 --> 0:06:38.739 a large asset in your life, I guess it just 0:06:38.740 --> 0:06:41.200 changes your perspective on everything. So I think you're right. 0:06:41.200 --> 0:06:43.620 It is it is a massive decision. And, you know, 0:06:43.660 --> 0:06:45.980 it does sort of make a very big impact on 0:06:46.029 --> 0:06:47.380 the way you think about money. 0:06:47.770 --> 0:06:50.260 And it's also probably the most expensive thing that you're 0:06:50.260 --> 0:06:52.210 going to have to pay for throughout your life is 0:06:52.210 --> 0:06:55.270 figuring out. Are you renting? Are you buying? And what's 0:06:55.270 --> 0:06:57.219 your strategy there? You know, when you retired, are you 0:06:57.220 --> 0:06:59.860 going to own a place outright or will still be renting? 0:07:00.040 --> 0:07:03.400 It's just so important. Now, look, preparing for this episode, 0:07:03.730 --> 0:07:06.700 you've you've been out there and you've been researching some 0:07:06.700 --> 0:07:10.030 pretty scary statistics just to give us the current state 0:07:10.030 --> 0:07:13.110 of play of where houses are at with home ownership. 0:07:13.120 --> 0:07:14.440 So do you want to run us through a few 0:07:14.440 --> 0:07:18.840 of the very scary stats? Yeah, it's not gross. 0:07:18.850 --> 0:07:22.810 It's not great. So something that did surprise me, which 0:07:23.240 --> 0:07:25.690 is the first statistic, which is that two thirds of 0:07:25.690 --> 0:07:28.090 Australians own their own home, which I thought might be 0:07:28.090 --> 0:07:30.250 a bit lower, and it used to be a bit higher. 0:07:30.340 --> 0:07:34.390 It used to be about 75%, but that's fallen over 0:07:34.390 --> 0:07:37.750 the last two decades to 66%. So, you know, it 0:07:37.750 --> 0:07:41.530 is coming down, more people are renting. But that sort 0:07:41.530 --> 0:07:45.040 of tells us that houses are expensive. We knew that 0:07:45.160 --> 0:07:47.650 this is not this is not surprising and have become 0:07:47.800 --> 0:07:53.260 much more and significantly more expensive over time. So in 2000, 0:07:53.350 --> 0:07:54.760 you could buy a house in Sydney and this is 0:07:54.760 --> 0:07:56.890 like a house, not a not an apartment for just 0:07:56.890 --> 0:08:01.000 under $300,000 and in Melbourne, just under $200,000. And that 0:08:01.000 --> 0:08:04.540 was at the turn of the millennium today. That's at 0:08:04.540 --> 0:08:10.930 about 1.6 million in Sydney and about 1.1 million in Melbourne. 0:08:10.930 --> 0:08:14.470 And the median across all capital cities is sitting pretty 0:08:14.470 --> 0:08:17.560 much exactly at $1 million to buy a house. 0:08:17.950 --> 0:08:19.570 A freestanding house, a. 0:08:19.570 --> 0:08:24.160 Freestanding house, obviously different for four units. But as most 0:08:24.160 --> 0:08:26.650 people think, you know, there's a sort of home ownership 0:08:26.650 --> 0:08:29.470 dream is owning a house typically. So that's that's sort 0:08:29.470 --> 0:08:32.740 of the reference. So that's a obviously, you know, an 0:08:32.740 --> 0:08:37.059 astounding rise in property values over I know obviously two 0:08:37.090 --> 0:08:39.940 decades is a long time, but that is a massive 0:08:39.940 --> 0:08:41.740 increase in the price of a property. 0:08:42.010 --> 0:08:45.819 Yeah. And way out of line with wages growth, you know, 0:08:45.820 --> 0:08:49.420 as a multiple of incomes. It's just it is to 0:08:49.420 --> 0:08:51.670 be stably got much much harder. 0:08:51.790 --> 0:08:54.910 Yeah nothing else you know few other things that have 0:08:54.910 --> 0:08:57.490 risen as much as you know as property prices have 0:08:57.490 --> 0:09:00.280 in the last 20 years. So what that sort of 0:09:00.280 --> 0:09:03.189 means for home owners who are trying to get into 0:09:03.190 --> 0:09:05.440 the market at the moment, is that to buy a house, 0:09:05.440 --> 0:09:09.490 you're looking at a deposit of at least $200,000. That's 0:09:09.490 --> 0:09:11.800 a lot of money. You know, that's it's an immense 0:09:11.800 --> 0:09:12.370 amount of money. 0:09:12.550 --> 0:09:15.309 To have the full 20% deposit, to have. 0:09:15.309 --> 0:09:17.320 The full 20%. Sorry, this should be clear. 0:09:17.410 --> 0:09:20.020 And is it that it's not hilarious? It's very painful 0:09:20.020 --> 0:09:22.570 that so we're saying that's how much she needed to 0:09:22.570 --> 0:09:25.960 buy a house in 20. In 2000 and now that's 0:09:25.960 --> 0:09:29.560 how much you need for a 20% deposit. It's just gobsmacking. 0:09:29.559 --> 0:09:31.780 Exactly. So what what could have bought you a full 0:09:31.780 --> 0:09:34.270 a full on house the whole hog back in back 0:09:34.270 --> 0:09:37.030 in 2000 now just gets you a measly 20% of it. 0:09:37.030 --> 0:09:40.000 So yeah, I think it's pretty clear to say that 0:09:40.000 --> 0:09:44.470 that the odds are stacked against young homeowners. A first 0:09:44.470 --> 0:09:46.719 home owners, young or not, it's a huge amount of 0:09:46.720 --> 0:09:50.349 money to save. And the stats are, you know, Australians 0:09:50.350 --> 0:09:54.370 save on average about $700 a month. So you're looking 0:09:54.370 --> 0:09:58.600 at maybe 8 to $10000 a year. So that's looking at, 0:09:58.720 --> 0:10:02.770 you know, for one person, 20 ish years of saving, 0:10:02.770 --> 0:10:05.410 if you're just saving straight off your own back to 0:10:05.410 --> 0:10:07.750 afford a home deposit, That's fascinating. 0:10:07.750 --> 0:10:08.860 What's the source of that? 0:10:08.950 --> 0:10:12.550 So that's from some savers savings surveys I found online 0:10:12.550 --> 0:10:16.480 from Finder. But I've checked a few other places and 0:10:16.480 --> 0:10:20.080 that's pretty accurate in terms of the ABS data as 0:10:20.080 --> 0:10:22.000 well as on sort of, you know, the amount that 0:10:22.000 --> 0:10:25.630 people save per year. Obviously, the older you are, you 0:10:25.630 --> 0:10:27.939 save more, the younger you are, you save less. But 0:10:28.059 --> 0:10:31.300 that's the average sort of thing. So obviously these these 0:10:31.300 --> 0:10:33.250 sort of figures change if you're saving for someone else 0:10:33.250 --> 0:10:34.479 like a you on a partner want to buy a. 0:10:34.750 --> 0:10:37.980 That sort of drops drastically, But you're still looking at 0:10:38.160 --> 0:10:40.050 a good number of years if you want to sort 0:10:40.050 --> 0:10:42.479 of go from zero to a house deposit. And I 0:10:42.480 --> 0:10:45.840 suppose this is where we can come in and look 0:10:45.840 --> 0:10:48.210 at what you can do to cut that period of 0:10:48.210 --> 0:10:51.990 time down or sort of circumvent it or whatever the 0:10:51.990 --> 0:10:53.020 possibility is. 0:10:53.290 --> 0:10:55.620 To help, because I think people would hear that. And 0:10:55.620 --> 0:10:57.360 I think a lot of people have just kind of 0:10:57.360 --> 0:11:00.569 given up and just gone. It's just not for me, 0:11:00.570 --> 0:11:02.550 you know, I'm going to have to look at a 0:11:02.550 --> 0:11:06.870 rent vesting sort of strategy where I'm investing somewhere else or. 0:11:06.870 --> 0:11:09.540 Just rent full stop and not even invest, Right. Yeah. 0:11:09.540 --> 0:11:11.459 You know, a lot of people can't afford to do 0:11:11.460 --> 0:11:13.650 investing on the side. So they're just sort of resigned 0:11:13.650 --> 0:11:15.179 themselves to renting for the rest of their lives. 0:11:15.179 --> 0:11:18.150 So yeah. And meanwhile, the rental market is getting tighter 0:11:18.150 --> 0:11:21.360 and people are getting squeezed there. Yeah, I mean, I 0:11:21.360 --> 0:11:23.819 sort of have done a lot of looking at that 0:11:23.820 --> 0:11:28.170 issue of renting versus, you know, buying and whether which 0:11:28.170 --> 0:11:30.690 one's appropriate. And I did use to be sort of 0:11:30.690 --> 0:11:32.730 I'll just be a rent. VESTER But I think I 0:11:32.730 --> 0:11:35.699 was just putting off city because I was doing the renting, 0:11:35.700 --> 0:11:38.790 but I wasn't doing the vesting, investing part of it. 0:11:38.790 --> 0:11:39.240 The common. 0:11:39.360 --> 0:11:41.490 Common scenario for many people in the in the renting 0:11:41.490 --> 0:11:42.210 bucket and. 0:11:42.210 --> 0:11:45.600 I think the sort of the having had a mortgage 0:11:45.600 --> 0:11:49.260 now and it's sort of it's enforced version of that 0:11:49.260 --> 0:11:52.050 that you know you it forces you to put aside, 0:11:52.290 --> 0:11:54.870 you know not only you're paying for the interest obviously 0:11:54.870 --> 0:11:57.150 on the loan that you've taken out, but the any 0:11:57.150 --> 0:11:59.850 principal you make is is a form of investment because 0:11:59.850 --> 0:12:03.480 you're increasing your ownership stake in an asset that you've purchased. 0:12:03.720 --> 0:12:06.780 And the ability I mean, there is nothing like property 0:12:07.140 --> 0:12:09.390 for banks to lend you money. So the ability to 0:12:09.390 --> 0:12:12.780 leverage and purchase an asset upfront of which you would 0:12:12.780 --> 0:12:18.000 enjoy any percentage gains in a tax free environment is 0:12:18.000 --> 0:12:21.660 pretty unparalleled. So when I've looked at renting versus, you know, 0:12:21.660 --> 0:12:24.240 buying a property to live in sort of comes back 0:12:24.240 --> 0:12:27.360 to that leverage thing of how much you'll be able 0:12:27.360 --> 0:12:31.530 to shackle yourself with one of these super sized mortgages, 0:12:31.530 --> 0:12:34.200 you know, which hurts on the interest front, but also 0:12:34.200 --> 0:12:38.790 gives you access to ownership of a large asset earlier 0:12:38.790 --> 0:12:42.480 in your life. So I am all about telling people 0:12:42.480 --> 0:12:45.900 that we've rigged the system such that property ownership is 0:12:46.410 --> 0:12:48.570 is structured in a way that if you can get 0:12:48.570 --> 0:12:53.160 on there, that hopefully will mean a good financial future 0:12:53.160 --> 0:12:56.640 for you, assuming you don't borrow too much. So whilst 0:12:56.640 --> 0:12:59.819 we acknowledge there are so many challenges out there, I really, 0:12:59.820 --> 0:13:02.640 really want to help people who are on the cusp 0:13:02.640 --> 0:13:04.709 or who might be close if they just did a 0:13:04.710 --> 0:13:07.469 few of these things. Yeah, we could maybe will help. 0:13:07.470 --> 0:13:09.290 Maybe we can help if we get there. 0:13:10.020 --> 0:13:12.210 The first thing I think is that we've we've spoken 0:13:12.210 --> 0:13:14.190 a lot, you know, just in this podcast so far 0:13:14.190 --> 0:13:18.359 about the 20% deposit and you don't need 20%. You 0:13:18.360 --> 0:13:21.119 can go in at less, you can come in at 10% 0:13:21.450 --> 0:13:25.110 or under, but you'll have to pay what's known as 0:13:25.110 --> 0:13:27.690 lender's mortgage insurance and have like, how much is that? 0:13:27.750 --> 0:13:29.880 Just like what? What is what's the sort of the 0:13:29.880 --> 0:13:32.070 average amount that you would expect to pay if you're 0:13:32.070 --> 0:13:33.660 paying lenders mortgage insurance? 0:13:34.110 --> 0:13:38.220 Yeah, I have in my mind sort of about $10,000 0:13:38.760 --> 0:13:42.360 being on a typical or a median sized home. It 0:13:42.360 --> 0:13:45.300 depends and it varies. But yeah, that's the insurance. You 0:13:45.300 --> 0:13:48.390 pay not to cover you in any capacity but to 0:13:48.390 --> 0:13:52.680 cover the bank. If you've borrowed on a lesser than 20% deposit, 0:13:52.679 --> 0:13:56.610 there's less equity that you have in the property. So, 0:13:56.610 --> 0:14:00.480 you know, the lender actually takes out this insurance to 0:14:00.480 --> 0:14:03.810 protect them. Yeah. And it can be a really high 0:14:03.809 --> 0:14:07.350 upfront cost. It is something you can build into your loans, 0:14:07.350 --> 0:14:10.410 so you just borrow that extra amount to cover it. 0:14:10.770 --> 0:14:13.320 And then there's also a government scheme which I think 0:14:13.320 --> 0:14:15.990 we'll get to. But yet number, you know, we've got 0:14:15.990 --> 0:14:18.630 a list of five solutions that we're going to offer 0:14:18.630 --> 0:14:21.300 to the people through number one, it doesn't seem like 0:14:21.300 --> 0:14:23.760 much of a solution, but to have less of less 0:14:23.760 --> 0:14:26.550 than 20% don't. If you're sitting there waiting to get 0:14:26.550 --> 0:14:30.510 your 20% deposit, for many people, the 23 years, that's 0:14:30.510 --> 0:14:34.050 just not you're not going to get there. And it 0:14:34.050 --> 0:14:37.380 just seems to be the way things are moving that 0:14:37.380 --> 0:14:40.170 the system is encouraging you and facilitating more people to 0:14:40.170 --> 0:14:42.780 get in earlier with smaller deposits, which is kind of 0:14:42.780 --> 0:14:46.590 scary when house prices are falling by 30 to absolutely 20%. Yeah. 0:14:46.710 --> 0:14:48.450 And you shack yourself up with a with a big 0:14:48.450 --> 0:14:50.960 mortgage and then, you know, interest rates go up and 0:14:50.970 --> 0:14:52.890 you can't repay it. Like there's a lot of it's 0:14:52.890 --> 0:14:54.830 not a it's not an elegant solution going in at 0:14:54.840 --> 0:14:57.030 less than 20% it is an option. 0:14:57.090 --> 0:14:59.190 But I think it is important for people to know 0:14:59.370 --> 0:15:02.370 that is what everybody else is doing. So, you know, 0:15:02.610 --> 0:15:06.780 absolutely you're sitting there waiting diligently to get your 20%. 0:15:06.960 --> 0:15:11.580 And like another option I'll second offering, which is doing 0:15:11.580 --> 0:15:13.410 similar to what Jess and I have done. And instead 0:15:13.410 --> 0:15:16.410 of looking to buy a house, looking to buy an apartment, 0:15:16.410 --> 0:15:19.500 so the median price for a per unit across all 0:15:19.500 --> 0:15:23.670 capital cities is about 600,000. In Melbourne, it's less than that. 0:15:23.910 --> 0:15:26.790 In Sydney, it's quite a bit higher. And you know, 0:15:26.940 --> 0:15:29.430 apartments are really nice. I love my apartment. I've got 0:15:29.430 --> 0:15:30.210 to have a great time. 0:15:30.420 --> 0:15:33.210 I love my apartment too. And I tell people, don't 0:15:33.210 --> 0:15:36.670 forget about. Ground floor apartments where you sort of all 0:15:36.670 --> 0:15:38.410 of us, apart from all the people living on top 0:15:38.410 --> 0:15:41.530 of you, it feels like you you know, you can 0:15:41.530 --> 0:15:44.660 have access to a bit of a garden as well. Yeah. 0:15:44.680 --> 0:15:47.170 I mean, as a solution, again, it's, you know, it's 0:15:47.170 --> 0:15:50.110 not what you dream of. You want the quarter acre 0:15:50.110 --> 0:15:52.450 block particularly. Got, you know, I've got a kid and 0:15:52.450 --> 0:15:54.970 I sort of it took me a lot of mental 0:15:54.970 --> 0:15:57.850 adjustment to go, That's just not going to happen. I'm 0:15:57.850 --> 0:16:00.340 not going to live in the sort of house that 0:16:00.340 --> 0:16:03.550 I lived in when I was a kid. And I 0:16:03.550 --> 0:16:06.400 think mentally adjusting to that can be hard because you 0:16:06.400 --> 0:16:09.130 feel like you want to provide that. But lots of 0:16:09.130 --> 0:16:14.680 great people, including us, are living in apartments. The only 0:16:14.680 --> 0:16:17.350 thing to watch out for that is strata fees. And 0:16:17.350 --> 0:16:20.560 I think people don't necessarily factor that in is which 0:16:20.560 --> 0:16:22.150 is a large ongoing cost. 0:16:22.180 --> 0:16:25.150 What are your strata fees each year in Sydney? 0:16:25.180 --> 0:16:29.830 I'm paying about a $9,000 a year in strata fees. Oh. 0:16:30.550 --> 0:16:32.980 9000. I'm truly shocked. 0:16:33.010 --> 0:16:36.880 The building that's got a lift, it's got communal gardens. 0:16:36.880 --> 0:16:39.790 We've got a pool, which is actually lovely, but you know, 0:16:39.790 --> 0:16:42.310 you're paying the cost. And I have been meaning to 0:16:42.310 --> 0:16:44.890 do the sums. I don't know if you bought bought 0:16:44.950 --> 0:16:48.100 a freestanding house, whether you would be spending $9,000 a 0:16:48.100 --> 0:16:50.590 year on upkeep. What are your fees? 0:16:50.950 --> 0:16:52.240 1400 a year. 0:16:52.540 --> 0:16:53.410 Oh, goodness. 0:16:53.620 --> 0:16:54.640 Yeah. So. 0:16:55.180 --> 0:16:57.780 Wow, maybe that's a Sydney, Melbourne thing because I'm. 0:16:57.800 --> 0:16:59.950 Guessing it might be. Also, I've only got 14 people 0:16:59.950 --> 0:17:01.750 in my block. Like, it's not a big it's not 0:17:01.750 --> 0:17:06.160 a big, big apartment. No lists. No lists. It's got 0:17:06.160 --> 0:17:08.980 actually communal gardens, it's got carports. It's like pretty low 0:17:08.980 --> 0:17:11.409 key on the maintenance front. So that's that's obviously the difference. 0:17:11.410 --> 0:17:14.020 But I'm not sure if that's, you know, seven and 0:17:14.020 --> 0:17:16.959 a half thousand dollars difference. That's a phenomenal amount of money. 0:17:16.990 --> 0:17:19.090 Yeah, I wish I had paid a little bit closer 0:17:19.090 --> 0:17:22.900 attention to that, actually, the ongoing cost, you know, because 0:17:22.900 --> 0:17:26.230 I'll own my apartment outright so there will be no mortgage, 0:17:26.230 --> 0:17:30.820 but when I'm retired, I'll still have this large ongoing cost. Yeah. Anyway, 0:17:30.820 --> 0:17:32.950 so just to take that into it, just take. 0:17:32.950 --> 0:17:35.320 That into account. What's our next tip? 0:17:35.619 --> 0:17:39.850 So solution three and this is what I wish I'd known, 0:17:39.850 --> 0:17:43.750 is that don't just sit there kind of thinking and wondering. 0:17:43.750 --> 0:17:47.440 You have to actually start going and talking to banks 0:17:47.440 --> 0:17:50.440 and to mortgage brokers pretty early on in the piece. 0:17:50.440 --> 0:17:52.900 And actually a large part of the education that I 0:17:52.900 --> 0:17:56.230 got about the process of getting a loan came from 0:17:56.710 --> 0:17:59.530 literally one day I walked into three different banks on 0:17:59.530 --> 0:18:02.200 the high street and just, you know, can I have 0:18:02.200 --> 0:18:06.520 a loan? And, you know, I'm a financial expert and 0:18:06.820 --> 0:18:09.280 it's just you have to go through that process because 0:18:09.280 --> 0:18:13.420 they then start to ask you all these questions like, okay, well, 0:18:13.420 --> 0:18:16.869 what's your income? What are your expenses? You know, and 0:18:16.869 --> 0:18:19.629 that's how they determine how much surplus cashflow you've got. 0:18:19.840 --> 0:18:22.330 And at the time, I was not the budgeting wizard 0:18:22.330 --> 0:18:24.310 that I am today. If you see. 0:18:24.310 --> 0:18:26.300 My famous, famous budgeting website. 0:18:26.680 --> 0:18:30.520 Instagram account, my money with Jess, I now keep a 0:18:30.550 --> 0:18:35.860 almost unhealthy level of tracking of my expenses. So now 0:18:35.859 --> 0:18:39.610 I know. But they will get you really thinking early 0:18:39.609 --> 0:18:43.720 on about focusing in on, you know, what's your income, 0:18:43.720 --> 0:18:46.330 what what are your expenses? Where could you trim back? 0:18:46.340 --> 0:18:48.820 You know, and I remember when I told one banker, oh, yes, 0:18:48.820 --> 0:18:52.060 I spend about, you know, what, three or $4,000 a 0:18:52.060 --> 0:18:55.210 year on hair treatments. And he sort of gave me 0:18:55.210 --> 0:18:58.390 the one I raised and went, Do you? Well, you 0:18:58.390 --> 0:19:01.330 don't now, you know, if you want your mortgage, you're 0:19:01.330 --> 0:19:03.550 not going to, you know, be able to you have 0:19:03.550 --> 0:19:05.859 to actually, you know, and I had to sort of 0:19:05.859 --> 0:19:09.250 live to a more modest lifestyle to afford my loan 0:19:09.250 --> 0:19:12.430 than I was previously. And know if you do go 0:19:12.430 --> 0:19:15.310 and have that conversation about your borrowing capacity, it can 0:19:15.310 --> 0:19:18.640 help you to sort of bring back to reality, you know, 0:19:18.640 --> 0:19:20.830 the some of the sacrifices that you probably will have 0:19:20.830 --> 0:19:21.340 to make. 0:19:21.640 --> 0:19:23.230 Though I think we should make it clear that we're 0:19:23.230 --> 0:19:25.480 not telling people to stop eating avocado toast. 0:19:25.750 --> 0:19:26.230 No. 0:19:26.500 --> 0:19:28.480 No, that's not part of that. You will never hear 0:19:28.480 --> 0:19:30.700 that on this podcast. We're never going to stop telling 0:19:30.700 --> 0:19:32.980 you to stop having your brunches. Yes, fine. 0:19:33.000 --> 0:19:33.429 Brunch is. 0:19:33.430 --> 0:19:33.910 Allowed to have. 0:19:33.940 --> 0:19:37.220 It, had a life. Maybe don't have that every day. 0:19:37.270 --> 0:19:39.340 Have it felt that if you were having an every day, 0:19:39.340 --> 0:19:40.810 I'd probably tell you to stop just from like a 0:19:40.810 --> 0:19:43.030 health point of view rather than like a finance point 0:19:43.030 --> 0:19:43.700 of view. I mean. 0:19:43.710 --> 0:19:44.320 Nutrition. 0:19:45.010 --> 0:19:46.959 Yeah. Would put them on nutritionists hat and say to 0:19:46.960 --> 0:19:50.050 stop eating the toast. Mix your diet up mate. 0:19:50.050 --> 0:19:54.640 Best healthy fats out of an avocado. We digress. 0:19:54.850 --> 0:19:57.939 We digress. Another sort of and this is this is 0:19:57.940 --> 0:20:00.100 the one that you sort of loathe to mention, but 0:20:00.100 --> 0:20:02.320 it is sort of the reality for so many people 0:20:02.650 --> 0:20:05.430 in Australia, which is the bank of mum and dad, right? Yeah, 0:20:05.500 --> 0:20:09.609 it exists. It's big. It offers a lot of very 0:20:09.640 --> 0:20:13.540 generous and low interest loans to a lot of people 0:20:14.109 --> 0:20:16.810 that a lot of people have to get money from 0:20:16.810 --> 0:20:19.630 their parents or they have to have their parents guaranteeing 0:20:19.630 --> 0:20:22.869 their loan. Like, you know, we've got two examples of 0:20:22.869 --> 0:20:26.169 either situation here, right? So it is sort of unfortunate 0:20:26.170 --> 0:20:28.480 that that is the scenario that we're in in Australia, 0:20:28.480 --> 0:20:31.660 where the generational wealth is such that that you have 0:20:31.660 --> 0:20:35.160 to rely on your parents to. I had the money 0:20:35.160 --> 0:20:37.229 for your house, and you then might have to do 0:20:37.230 --> 0:20:39.990 that for your own kids. But it is a reality 0:20:39.990 --> 0:20:41.880 for many people who are in the position that where 0:20:41.910 --> 0:20:44.189 their parents can do that. And you know that some 0:20:44.580 --> 0:20:46.500 it is a lot of ways to get into the 0:20:46.500 --> 0:20:47.109 property market. 0:20:47.130 --> 0:20:50.939 Yeah, it makes me really sad. We've designed such a 0:20:50.940 --> 0:20:55.170 terrible system that we've let house prices inflate away. And 0:20:55.170 --> 0:20:58.470 if you didn't carefully select your mother and father at birth. 0:20:59.190 --> 0:20:59.629 Which we all. 0:20:59.640 --> 0:21:02.409 Did to be someone who owns property and, you know, 0:21:02.410 --> 0:21:06.120 in urban areas. Yeah. The idea I hate giving this 0:21:06.119 --> 0:21:08.790 piece of advice and I was very loathe to get 0:21:08.790 --> 0:21:11.730 my own parents involved. I was like, No, I should 0:21:11.730 --> 0:21:13.800 be able to do this by myself. I want to 0:21:13.800 --> 0:21:15.600 be able to do this by myself. I was really 0:21:15.600 --> 0:21:18.450 worried about having mom and dad on the hook because 0:21:18.450 --> 0:21:21.720 they went guarantor by loan, but it is a conversation 0:21:21.720 --> 0:21:25.200 worth having. If your parents do own property, they've got 0:21:25.200 --> 0:21:27.570 substantial equity in their home. You know, they might not 0:21:27.570 --> 0:21:30.600 have the cash to actually stump up to help you 0:21:30.600 --> 0:21:34.950 with deposit. But there there are parental guarantees. And what 0:21:34.950 --> 0:21:37.380 was reassuring to me and it's just worth talk to 0:21:37.380 --> 0:21:39.600 a mortgage broker, talk to a banker about how to 0:21:39.600 --> 0:21:42.120 use these sort of guarantees. They weren't sort of on 0:21:42.119 --> 0:21:44.369 the on the line or on the hook, if, you know, 0:21:44.369 --> 0:21:46.169 if I didn't pay my loan, they were going to 0:21:46.170 --> 0:21:48.810 have to pay back my whole loan, but only for 0:21:48.810 --> 0:21:52.170 the missing amount that I had in my deposit versus 0:21:52.170 --> 0:21:55.680 having the 20% deposit. They went guarantor on that sort 0:21:55.680 --> 0:21:59.490 of smaller amount, which meant that I avoided paying lenders 0:21:59.490 --> 0:22:01.889 that lender's mortgage insurance that we spoke about. 0:22:01.980 --> 0:22:05.250 Okay, So you can sort of and organize it so 0:22:05.250 --> 0:22:06.680 it works in a different way. 0:22:06.690 --> 0:22:08.280 Yeah. So I think I mean, I could have borrowed 0:22:08.280 --> 0:22:11.220 with I think I had about a 15% deposit at 0:22:11.220 --> 0:22:12.900 the time and I could have done it and just 0:22:12.900 --> 0:22:16.200 paid lender's mortgage insurance. But it did, you know, having 0:22:16.200 --> 0:22:19.410 that guarantee meant that I avoided into that, that part 0:22:19.410 --> 0:22:21.359 of the cost. So it's not that I couldn't get 0:22:21.359 --> 0:22:25.380 it without the guarantee, but it did help me save 0:22:25.590 --> 0:22:29.100 save a little bit upfront. And then actually what happened 0:22:29.100 --> 0:22:32.580 is after in the year after I bought the the 0:22:32.580 --> 0:22:34.980 value of the property went up and then I was 0:22:34.980 --> 0:22:37.440 able to release them from the guarantee. Once your loan 0:22:37.440 --> 0:22:41.250 to value ratio is under the 80%, then you can 0:22:41.250 --> 0:22:43.649 release them. So that was a lovely moment to be 0:22:43.650 --> 0:22:46.350 had to right release I release you back into the wild, 0:22:46.350 --> 0:22:46.560 you know. 0:22:46.560 --> 0:22:47.810 Not they're not part of this. 0:22:48.000 --> 0:22:51.270 So yeah, I'm an independent lady all again, all over again. 0:22:51.630 --> 0:22:54.090 So there are the bank of Mum and Dad is 0:22:54.090 --> 0:22:57.450 not totally flush with cash. There are other ways that, 0:22:57.450 --> 0:23:00.300 that they can help. And you know, if you have 0:23:00.300 --> 0:23:03.209 access to that, it's a conversation worth having. 0:23:03.210 --> 0:23:05.580 Yeah. And also, again, you know, this is another sort 0:23:05.580 --> 0:23:07.080 of thing that a lot of people are very privileged 0:23:07.080 --> 0:23:09.109 to have, but a lot of people are not. So exactly. 0:23:09.270 --> 0:23:11.490 Obviously that piece of advice is not apply to everyone, 0:23:11.490 --> 0:23:15.180 but this piece of advice does apply to everyone, which 0:23:15.180 --> 0:23:18.659 is there are a number of first time buyer schemes 0:23:18.660 --> 0:23:21.090 out there. There was a I'm not sure if people 0:23:21.090 --> 0:23:22.590 remember the election. That was a bit of a that 0:23:22.590 --> 0:23:24.360 was a bit of a topic. So we have we 0:23:24.359 --> 0:23:27.540 have some sort of some some fresh home schemes that 0:23:27.540 --> 0:23:31.439 are available on the federal one. There's 35,000 places a year. 0:23:31.650 --> 0:23:34.590 They allow you to buy a place for as little 0:23:34.590 --> 0:23:37.619 as a 5% deposit and they'll sort of back you 0:23:37.650 --> 0:23:39.149 like the government will back you. 0:23:39.180 --> 0:23:42.000 Yeah, they essentially become the bank of mum and dad 0:23:42.000 --> 0:23:46.740 for you by going the guarantor. It is income tested. Yeah. 0:23:46.770 --> 0:23:48.750 For people to be aware of. But yeah, that's the 0:23:48.750 --> 0:23:52.530 first home deposit scheme which seems to be a new 0:23:52.530 --> 0:23:55.530 feature and a feature that's going to stay in the landscape. 0:23:55.590 --> 0:23:58.380 Absolutely. But obviously the caveat with that is that you 0:23:58.380 --> 0:24:00.210 have to apply. It's not for everyone and there's only 0:24:00.210 --> 0:24:03.660 35,000 every year. So, you know, it's it's a bit 0:24:03.660 --> 0:24:05.580 of a limited scheme, but it is a good way 0:24:05.640 --> 0:24:08.070 to get yourself into the into the property market with 0:24:08.070 --> 0:24:11.490 a very small deposit. And then obviously on top of that, 0:24:11.490 --> 0:24:14.520 there's all the state based first home buyer schemes, which 0:24:14.520 --> 0:24:17.640 are pretty similar as far as I'm aware. Often it's 0:24:17.640 --> 0:24:21.390 a grant of about $10,000. They'll waive stamp duty up 0:24:21.390 --> 0:24:24.030 to a certain value of the property and then over 0:24:24.030 --> 0:24:26.580 that they'll reduce the stamp duty like I didn't pay 0:24:26.580 --> 0:24:30.449 any stamp duty on my place, which was, which was good. 0:24:30.780 --> 0:24:32.550 Because it was under the threshold. 0:24:32.580 --> 0:24:34.380 Yes. It was under 600,000. Yeah. 0:24:34.560 --> 0:24:36.750 And then the final one we wanted to mentioned was 0:24:36.750 --> 0:24:40.020 the first home super saver scheme, which I remember when 0:24:40.020 --> 0:24:42.270 that was invented back in the day. I'm showing my 0:24:42.270 --> 0:24:45.180 age now, but when Kevin Rudd got elected, you know, 0:24:45.180 --> 0:24:47.660 housing affordability was a big issue. How long a good 0:24:47.790 --> 0:24:50.399 Kevin I seven. So that's 15 is still a big issue. 0:24:50.670 --> 0:24:52.919 And this was their sort of offering which has since 0:24:52.920 --> 0:24:55.649 been expanded, that if you have a plan and if 0:24:55.650 --> 0:24:57.990 you're ahead of time, you know, a couple of years 0:24:57.990 --> 0:25:01.140 down the road before you want to purchase, you can 0:25:01.140 --> 0:25:06.359 make voluntary contributions to super up to a $15,000 a 0:25:06.359 --> 0:25:10.680 year and then capped at a sort of $50,000 total 0:25:10.680 --> 0:25:13.050 that you can put into super and take out again 0:25:13.050 --> 0:25:17.100 for release under the first Home Saver scheme. The advantage 0:25:17.100 --> 0:25:19.620 of that is that you pay lower tax on that money. 0:25:19.619 --> 0:25:22.350 So rather than be taxed at your marginal rate, you 0:25:22.350 --> 0:25:26.219 get to save in this lower tax environment of super 0:25:26.490 --> 0:25:28.740 and the that that can really you know, the amount 0:25:28.740 --> 0:25:32.250 of tax that you save adds to the deposit that 0:25:32.250 --> 0:25:34.369 you can then. A mess. 0:25:34.500 --> 0:25:36.659 Yeah. And if the market's having a good year, make 0:25:36.660 --> 0:25:39.020 it a little bit of money on your. On your deposit, too. Yeah. 0:25:39.030 --> 0:25:40.800 And you just hope it wasn't sort of the last 0:25:40.800 --> 0:25:44.100 year or. Yeah, you sort of want to be looking 0:25:44.100 --> 0:25:46.320 at us sort of a couple of years time horizon, 0:25:46.320 --> 0:25:49.080 I think. But if I have my time again, you know, 0:25:49.170 --> 0:25:51.180 and I got my act together a bit earlier, that's 0:25:51.180 --> 0:25:52.830 definitely something I would have looked at. 0:25:53.220 --> 0:25:55.440 That scheme made to I think about none of that. 0:25:55.440 --> 0:25:57.000 I would have put a bit more cash in. So 0:25:57.000 --> 0:26:00.150 something like that. Well, look, we hope that that sort 0:26:00.150 --> 0:26:03.360 of helps a little. Obviously, that doesn't erase the massive, 0:26:03.630 --> 0:26:07.139 overarching problem of housing affordability in Australia, which is something 0:26:07.140 --> 0:26:09.450 that no one appears to want to talk about or 0:26:09.450 --> 0:26:13.800 do much about. So moving on from that, Jess, we 0:26:13.800 --> 0:26:15.480 do have your budget tip of the week. Is it 0:26:15.480 --> 0:26:16.229 related to housing? 0:26:16.619 --> 0:26:17.220 It's not. 0:26:18.210 --> 0:26:19.859 Well, that's probably refreshing, to be honest. 0:26:19.890 --> 0:26:22.619 Unless you have home insurance. My budget tip of the 0:26:22.619 --> 0:26:25.140 week is to live your life to excess. 0:26:26.369 --> 0:26:29.220 Okay, great. You know what I said about avocado toast earlier? 0:26:29.220 --> 0:26:30.230 I'm just going to go grab some. 0:26:30.240 --> 0:26:34.920 Just go eat. No, this is to look at your 0:26:34.920 --> 0:26:39.479 excesses on your insurance policy. So everyone's tightening the belt. 0:26:39.869 --> 0:26:44.250 Starting to review, you know, household expenses. Something that I've 0:26:44.250 --> 0:26:48.090 done throughout my personal finances is to go through all 0:26:48.090 --> 0:26:53.580 my insurance. So car insurance, health insurance, home insurance, and 0:26:53.580 --> 0:26:56.280 a strategy that I have in place because I know 0:26:56.670 --> 0:26:59.250 that I do have an emergency savings fund. I've got 0:26:59.250 --> 0:27:02.939 my $36,000 that sits there, which I've calculated is roughly 0:27:02.940 --> 0:27:06.690 my six months of basic living expenses. So I know 0:27:06.690 --> 0:27:09.090 that if I do need to make a claim, if 0:27:09.090 --> 0:27:11.700 I agree to a higher excess, which means that I 0:27:11.700 --> 0:27:14.369 agree to pay a higher dollar amount out of pocket 0:27:14.369 --> 0:27:16.500 in the event that I need to claim that my 0:27:16.500 --> 0:27:21.150 premiums go down. So with private health insurance, they recently increased, 0:27:21.150 --> 0:27:24.450 you know, the excess that you're allowed to accept up 0:27:24.450 --> 0:27:29.609 to 750 for singles and 1500 for couples. And so 0:27:29.609 --> 0:27:33.570 I just go for the biggest excess possible. And I 0:27:33.570 --> 0:27:35.030 know that I've got the savings there to pay it 0:27:35.040 --> 0:27:36.389 if I need to pay it out of pocket in 0:27:36.390 --> 0:27:39.150 the event of a claim. But I have saved so 0:27:39.150 --> 0:27:42.420 much of my premiums on across all of my insurance 0:27:42.420 --> 0:27:46.440 is that it's probably already made up for whatever excess 0:27:46.440 --> 0:27:48.870 I would need to pay. And you could be unlucky, unfortunately. 0:27:48.869 --> 0:27:52.200 And you know, maybe you have a claim fall soon 0:27:52.200 --> 0:27:54.840 and you've, you know, agreed to the bigger excess and 0:27:54.840 --> 0:27:56.729 that's not going to work out for you. But it's 0:27:56.730 --> 0:27:59.909 definitely something you can tinker with because those are some 0:27:59.910 --> 0:28:04.680 very large parts of household budgets and insurances, particularly private health. 0:28:04.980 --> 0:28:06.270 Premiums, are one of those things that I think when 0:28:06.270 --> 0:28:07.830 I bought insurance for the first time, like I bought 0:28:07.830 --> 0:28:09.990 a car for the first time last year and I 0:28:09.990 --> 0:28:11.639 was like, I don't really understand this. I'm just going 0:28:11.640 --> 0:28:13.210 to set it at a number that feels about right. 0:28:13.230 --> 0:28:15.240 Like I didn't even I don't even think about it. 0:28:15.240 --> 0:28:17.940 So I should I'll I'll go back and review my 0:28:17.940 --> 0:28:20.139 excesses and be more excessive. 0:28:20.170 --> 0:28:21.210 Be more excessive. 0:28:22.230 --> 0:28:23.790 Well, I think that's probably all we have time for 0:28:23.790 --> 0:28:26.490 this week. But in future episodes, we would love to 0:28:26.490 --> 0:28:29.550 answer your questions, so please email them through to. It 0:28:29.550 --> 0:28:33.119 all adds up at nine. Accommodate a few or even 0:28:33.119 --> 0:28:35.160 send them as a voice memo so we can play 0:28:35.160 --> 0:28:37.109 them if a live. That's alright with you because we'd 0:28:37.109 --> 0:28:37.709 love to hear from you. 0:28:38.670 --> 0:28:40.890 This episode of It All Adds Up was produced by 0:28:40.890 --> 0:28:44.460 Chee Wong. Information discuss is generally nature and does not 0:28:44.460 --> 0:28:48.240 take into account your personal financial situation, goals or objectives. 0:28:48.510 --> 0:28:50.880 You should always do your own research or get professional 0:28:50.880 --> 0:28:54.510 advice before making any major financial decisions. 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