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Speaker 1: Just before we get started, we'd like to acknowledge and

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Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.

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Speaker 1: They're the traditional custodians of the lands, the waterways and

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Speaker 1: the skies all across Australia. We thank you for sharing

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Speaker 1: and for caring for the land on which we are

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Speaker 1: able to learn. We pay respects to elders past and present,

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Speaker 1: and we share our friendship and our kindness.

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Speaker 2: She's on the Money, She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: for millennials who want financial freedom. My name is Georgia King,

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Speaker 3: and joining me as she does each and every Wednesday,

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Speaker 3: is Victoria Divine V. How are we doll?

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Speaker 1: Hello? Thanks for having me today.

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Speaker 3: Are talking buying property? Some cold and hard stats to

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Speaker 3: kick us off, I'm ready. Did you know there were

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Speaker 3: almost five hundred and ninety eight thousand house and unit

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Speaker 3: sales across Australia over the year ending August twenty twenty one.

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Speaker 3: What That's the highest number of annual sales since two

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Speaker 3: thousand and four, and it's a forty two percent lift

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Speaker 3: on the annual number of sales over the previous twelve

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Speaker 3: month period.

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Speaker 1: That's a feisty stat I reckon, that's fisty, big. I

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Speaker 1: was trying to be cool with my language.

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Speaker 3: I love it and I welcome it. But that's that's

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Speaker 3: a lot of sales considering how expensive everything is at

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Speaker 3: the moment.

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Speaker 1: But I'm sad about it. But at the same time,

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Speaker 1: it kind of makes sense. We've all heard how crazy

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Speaker 1: the property market has been recently, so I think it's Yeah,

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Speaker 1: I don't think it's a bad thing at the same

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Speaker 1: time as being absolutely terrifying for anyone wanting to enter

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Speaker 1: the market.

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Speaker 3: And I guess it's supply and demand, right, Like, that's why.

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Speaker 1: Exact prices exactly. Gee, all of this is exactly why

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Speaker 1: I thought it was super important to talk about this today. Look,

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Speaker 1: today's episode is basically another pep talk from me to

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Speaker 1: you and to everybody who listens, and a little bit

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Speaker 1: of a values check in. It's so easy to fall

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Speaker 1: into other people's value systems and then out of our

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Speaker 1: own completely. It is also way too easy to buy

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Speaker 1: into what the media are saying to Please don't forget.

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Speaker 1: Do you remember it, like mid pandemic, they were like

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Speaker 1: talking about our housing price is post pandemic absolutely going

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Speaker 1: to go through the floor. It was plastered across the

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Speaker 1: front page of literally every major publication news publication that

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Speaker 1: is in the country. And then now they're like, oh,

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Speaker 1: what do you mean, we didn't say that. I don't

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Speaker 1: know what you're talking about. Market is wild, Millennials can't

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Speaker 1: get in and they're eating too much avo toast. Again,

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Speaker 1: like it's just the media likes to hype things up,

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Speaker 1: and at the end of the day, the market comes

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Speaker 1: down to two things. Supply demand. That's it. You hit

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Speaker 1: the nail on the head before. Supply is low, demand

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Speaker 1: is high. We all want the same thing, we're all

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Speaker 1: working towards similar goals, which shifts the price of those

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Speaker 1: things up right, And it just makes logical sense. Things

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Speaker 1: are more expensive if there's only one on offer at

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Speaker 1: the moment. Cost of can of coke going to be

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Speaker 1: the same whereof you go because it's in abundance. Cost

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Speaker 1: of a very expensive fancy bottle of Grange wine, well,

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Speaker 1: it depends where it is and how many are out there.

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Speaker 1: Is it on a corner block like who knows? But

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Speaker 1: it's one of those things where I think too often

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Speaker 1: we play too much into what the media is saying,

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Speaker 1: but then also take it too seriously, like the media

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Speaker 1: is there for entertainment purposes, Like, obviously there's some level

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Speaker 1: of truth to it, But do you really think they're

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Speaker 1: reporting on housing prices because they're just so worried about

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Speaker 1: your personal education? Georgia King, Well, they probably want your

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Speaker 1: eyeballs for that reason to sell advertising. Ah haha, same page.

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Speaker 1: Keep listening to our podcast and listen to our ad

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Speaker 1: So today we are going to talk about our values

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Speaker 1: and how they align with external pressures in society and

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Speaker 1: the media, and what is happening in the market. And

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Speaker 1: we're going to give you some things to consider when

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Speaker 1: deciding whether you're going to purchase a property or do

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Speaker 1: you do it now or do you wait and save

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Speaker 1: for a bigger deposit. We're going to talk about inflation,

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Speaker 1: We're going to talk about available grants, increasing land value,

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Speaker 1: and so so so much more. G King, Are you

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Speaker 1: ready love it?

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Speaker 3: It's been a while since you and I have done

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Speaker 3: a property Podvase, so I am quite excited for this

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Speaker 3: to pepper my questions your way.

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Speaker 1: It's almost like we stopped doing property podcasts when we

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Speaker 1: got our own property podcast.

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Speaker 3: On that v is the property playbook coming back anytime soon.

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Speaker 1: It'll be back second half of this year. But don't

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Speaker 1: tell anyone I told you fabulous.

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Speaker 3: Okay, let's begin today's potty by discussing a few common

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Speaker 3: catch phrases or mabercard if you like, well, yes, myth,

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Speaker 3: I want you to respond to the following. Here we go.

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Speaker 1: Okay, I'm ready.

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Speaker 3: Rent money is dead money, No it's not. It's a

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Speaker 3: lifestyle expent brilliant. The Australian dream, No.

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Speaker 1: Sir, not a thing. Who's dream? Your dream? The Australian dream?

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Speaker 1: What about Georgia's dreams? What about her dreams?

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Speaker 3: Man?

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Speaker 1: You look pressed. We will take this offline later. But

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Speaker 1: in the narrowest sense, the Australian dream is literally the

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Speaker 1: belief that in Australia, home ownership can lead to a

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Speaker 1: be life and is an expression of success and security.

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Speaker 1: Owning property, at the end of the day, is not

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Speaker 1: security if it messes over your finances, and rant can

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Speaker 1: often be better in some personal circumstances. I think it's

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Speaker 1: quite interesting as well, because you know, we just talked

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Speaker 1: about having your own values and aligning to your own things,

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Speaker 1: and then we're like, but it's the Great Australian dream like,

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Speaker 1: let's just stick to our own dreams, not like the

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Speaker 1: Great Australian or Great American dream like. Unfortunately, everything in

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Speaker 1: the entire world has changed since that was the reality,

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Speaker 1: and we can't expect the values of somebody in the

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Speaker 1: literal fifties to be guiding what we want today.

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Speaker 3: What is the current state of the market, Like, is

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Speaker 3: it still pretty grizzly on perspective?

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Speaker 1: Buy it's not that bad, look, it's pretty grizzly. In fact,

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Speaker 1: I attended an auction last weekend last weekend a couple

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Speaker 1: of weekends ago, and the house that was being auctioned off,

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Speaker 1: which was around the corner from my parents, and obviously

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Speaker 1: we were all pervy whent four hundred thousand dollars over

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Speaker 1: what they said it was going to go over, Like,

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Speaker 1: let's contextualize that for a moment. That's literally someone else's house,

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Speaker 1: Like somebody paid for an entire other house. They were like,

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Speaker 1: it was so nice they needed to buy it twice,

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Speaker 1: like insane to think obviously it was a bit more pricey,

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Speaker 1: Like that's why all there, because we were all herby,

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Speaker 1: but four hundred thousand dollars over what it was worth

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Speaker 1: Like that to me sounds insane. So they did say

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Speaker 1: that the property market would actually end up bottoming out,

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Speaker 1: but it hasn't happened yet. It is actually starting to boom.

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Speaker 1: In fact, in the quarter up to December twenty twenty one,

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Speaker 1: so the last three months of last year, the weighted

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Speaker 1: average of the eight capital cities residential property price index

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Speaker 1: rose four point seven percent that quarter and rose twenty

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Speaker 1: three point seven percent in the last twelve months. That

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Speaker 1: means property in general g increased by twenty three percent,

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Speaker 1: which pretty good investment if you have the ability to

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Speaker 1: actually get into that investment asset class. The total value

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Speaker 1: of residential dwellings in Australia rose five one hundred and

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Speaker 1: twelve point six billion dollars to nine thousand, nine hundred

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Speaker 1: and one point six billion dollars this quarter, and the

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Speaker 1: mean price of residential dwellings actually rows forty four thousand

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Speaker 1: dollars to nine hundred and twenty thousand, one hundred dollars.

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Speaker 1: Like that is so far out of the scope of

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Speaker 1: so many people's budgets, it's not funny. Like let's break

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Speaker 1: this down a little bit more. G you want to

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Speaker 1: buy a million dollar property great, that seems like a

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Speaker 1: wild number, but in most capital cities, a million dollars

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Speaker 1: is the mean, right, you want a full twenty percent deposit.

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Speaker 1: How long is it going to take you to save

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Speaker 1: two hundred thousand dollars the rest of my life? Yeah,

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Speaker 1: But like that's just it is so far out of

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Speaker 1: touch with what is actually achievable, especially when the average

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Speaker 1: salary is eighty two thousand dollars a year in Melbourne, Like,

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Speaker 1: eighty two thousand dollars, What can you save each and

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Speaker 1: every single month. Maybe if you're lucky, you're saving like

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Speaker 1: two thousand dollars on that salary. That's assuming that you

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Speaker 1: don't have any dependence, no personal debt, and the ability

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Speaker 1: to save, which is a privilege that is denied to

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Speaker 1: many of us. Like so many of us have financial

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Speaker 1: commitments or think about the amount of people who are

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Speaker 1: in our community who have to spend money on medical

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Speaker 1: expenses and medications, and like it's just so crippling to

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Speaker 1: me mentally to look at that and go, that's just

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Speaker 1: so unachievable.

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Speaker 3: It is extremely intimidating looking at that as someone who's

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Speaker 3: not yet in the market fee And we've spoken about

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Speaker 3: this on the podcast before, and I mean, I don't

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Speaker 3: think we've spoken about this in probably six months or so,

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Speaker 3: you and I, I mean on this podcast, and the

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Speaker 3: fact that the numbers are still so far out of reach.

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Speaker 3: It's in this house went four hundred thousand dollars over reserves.

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Speaker 1: But the facts not encouraged to have that disposable capital.

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Speaker 1: You just look at it and you're like, what, but Sane.

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Speaker 3: Has that because it's obviously not first hold bias.

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Speaker 1: No, absolutely not. And I'm assuming I don't know this

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Speaker 1: for sure, but I'm assuming that the property that I

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Speaker 1: saw go four hundred thousand dollars over was brought by

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Speaker 1: a developer because it looked like, you know, was down

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Speaker 1: in my parents place near the beach, and it looked

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Speaker 1: like one of those properties that they'll probably stick to townhouses

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Speaker 1: on and disappoint every other resident in that suburb, you know.

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Speaker 1: So it's it makes sense, but it's just really, I

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Speaker 1: guess disheartening to see as somebody who you know, I

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Speaker 1: run this community and I want all of you to

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Speaker 1: be successful, and so many of you have the value

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Speaker 1: of purchasing a home. It breaks my heart to think

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Speaker 1: that you know you're not going to achieve your goals.

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Speaker 1: But at the same time, it doesn't necessarily mean that

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Speaker 1: you're behind financially. And I'd hate for you to think that,

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Speaker 1: oh my gosh, if I can't achieve this goal, i

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Speaker 1: haven't been able to make it or I'm not successful,

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Speaker 1: because that's not the case at all. I think we've

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Speaker 1: defined success based on somebody else's history, and now owning

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Speaker 1: property is more of a luxury than a necessity or

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Speaker 1: a hygiene factor as it used to be. In the

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Speaker 1: same way that you joke about, you know, owning a yacht,

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Speaker 1: like it might become the norm to not be able

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Speaker 1: to afford it. And there are actually lots of cities

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Speaker 1: around the world where owning property that's not normal. Like

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Speaker 1: you look at New York, basically nobody there who is

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Speaker 1: living there lives in a property that they own because

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Speaker 1: they genuinely can't afford it. So it might be becoming

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Speaker 1: our new norm, and that, you know, it's disappointing when

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Speaker 1: accessibility was so accessible historically. But I just, yeah, breaks

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Speaker 1: my heart a little bit. But let's get into a

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Speaker 1: little bit of the background of what has actually been

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Speaker 1: happening up until now. And I've got a few dot points,

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Speaker 1: So let me run through those for you Gking. First

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Speaker 1: things first, is that housing turnover, which is the annual

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Speaker 1: amount of homes that are for sale as a percentage

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Speaker 1: of the total dwellings that exist, trended lower from late

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Speaker 1: twenty fifteen as credit and lending conditions ended up tightening.

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Speaker 1: You know how we had the whole Royal Commission and

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Speaker 1: we looked into it, and therefore it was harder to

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Speaker 1: get a home loan, and then housing affordability became more

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Speaker 1: challenging and transaction costs like stamp duty actually became increasingly

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Speaker 1: expensive as prices rose. Then national turnover reached a record

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Speaker 1: low in June twenty nineteen, when only three point seven

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Speaker 1: percent of Australian homes transacted over the year. Since the

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Speaker 1: credit policies have now loosened and mortgage rates have now

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Speaker 1: reduced a record lows. Thank Fully, this has encouraged Australians

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Speaker 1: and you know, our community to participate in the housing market,

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Speaker 1: which has been good. So it's not as though it's

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Speaker 1: just like the last twelve months that have been hard.

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Speaker 1: It's actually been the better part of seven or eight years.

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Speaker 1: And then, to add insult to injury, a higher rate

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Speaker 1: of household saving since March twenty twenty has boosted consumers

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Speaker 1: deposit levels, which is really good, but it's also boosted

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Speaker 1: their mortgage serviceability, which means they're over paying for property

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Speaker 1: because they just want to get in. While government incentives

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Speaker 1: like the stamp duty concessions that are currently on offer

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Speaker 1: and deposit guarantees have also supported demand, so it makes

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Speaker 1: sense that people are trying to pay more for properties

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Speaker 1: because they're like, Wow, I've got this extra casholder that

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Speaker 1: I've saved over the panide and now I want to

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Speaker 1: put it towards a house. And if there are enough

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Speaker 1: people doing that, that's obviously going to boost prices up

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Speaker 1: and change the way, you know, supply and demand works.

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Speaker 1: And then by the end of August twenty twenty one,

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Speaker 1: housing turnover had reason to five point six percent, which

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Speaker 1: is the highest rate since December two thousand and nine.

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Speaker 1: So all of these base is saying that it's not

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Speaker 1: slowing down. Unfortunately. Sorry sorry, sorry, but imagine if just

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Speaker 1: not eating smash diver was actually the answer, that podcast

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Speaker 1: would have been like three seconds.

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Speaker 3: Imagine. So they riddled me this through the pandemic or

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Speaker 3: the Panini Panini, You're still trying to push that and

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Speaker 3: coin that, and I love that. No respect that.

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Speaker 1: You don't though, there's not a lot of respect to

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Speaker 1: this table right now.

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Speaker 3: The pandemic, a lot of people lost their jobs, they

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Speaker 3: took pay cuts, they were greatly impacted financially. It follows

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Speaker 3: as the media assumed, and we all assume, that the

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Speaker 3: market would crash. I just don't understand why it's gone up.

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Speaker 3: I guess as you just outline, like supply and demand

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Speaker 3: and all of these different things have happened, but I'm

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Speaker 3: just confused as to who is buying these homes.

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Speaker 1: Look, I think that we really need to look at,

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Speaker 1: you know, what happened during the pandemic in a little

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Speaker 1: bit more black and white term. So I think that

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Speaker 1: the media really played into what we visually saw as

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Speaker 1: the pandemic, because if you look at it, yes, thousands

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Speaker 1: of people lost their jobs. I am not underplaying that

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Speaker 1: there was job seeker, there was job keeper, Like this

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Speaker 1: was hot on either politician's minds. It was on the

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Speaker 1: media like that's what we were talking about, because the

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Speaker 1: media didn't have heaps of other content to push. But

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Speaker 1: also those stories are far more interesting than you know,

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Speaker 1: Victoria Devine who got to work from home and now

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Speaker 1: just couldn't go to the office. And I think that

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Speaker 1: there are so many stories similar to mine where you know,

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Speaker 1: and I feel massive guilt for that because I'm like

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Speaker 1: far out, like I, you know, and I tried to

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Speaker 1: do as much as I could. But I was okay

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Speaker 1: through COVID and arguably was in the incredibly privileged position

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Speaker 1: of being able to save a little bit more during

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Speaker 1: that period of time because it wasn't paying for parking,

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Speaker 1: wasn't catching the train, you know, I wasn't having to

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Speaker 1: put fuel in my car because I was working from

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Speaker 1: home and the type of job I have is online

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Speaker 1: in your ears, Georgia, and it meant that I got

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Speaker 1: to work from home. But that privilege wasn't something everybody experienced.

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Speaker 1: And the fact that so many people were, you know,

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Speaker 1: unable to work doesn't take away from the fact that

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Speaker 1: there were so many people who just had corporate jobs

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Speaker 1: who you know, maybe were planning on buying a house

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Speaker 1: in the next five years. Their additional savings meant that

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Speaker 1: they were able to buy it three years early. So

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Speaker 1: I think once we weren't stuck in our homes anymore,

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Speaker 1: people were like, you know, what, I've got so many

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Speaker 1: different values now. I think there was a massive increase

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Speaker 1: in the amount of people who were like, no, I

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Speaker 1: actually do want to buy a house. I didn't think

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Speaker 1: I wanted to, Now I do. I don't want to

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Speaker 1: live in an apartment. I want space, I want land,

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Speaker 1: And that seems to be for a lot of people

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Speaker 1: buying property far more preferable. People are now buying further out,

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Speaker 1: pushing out regional property prices because they're like, now I

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Speaker 1: can work from home. G I've learnt so much about it.

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Speaker 1: So I think that as much as we visually see

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Speaker 1: so many people who had suffered through that, and like,

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Speaker 1: there's no downplaying that, it's absolutely messed up when it

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Speaker 1: comes to the property market. There are so many people

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Speaker 1: who are first home buyers or second home buyers or

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Speaker 1: even third home buyers who got to sit in that

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Speaker 1: little white collar bubble where they weren't actually financially impacted

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Speaker 1: in any way, shape or form. In fact, they were benefited,

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Speaker 1: you know, not in general because I think a played

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Speaker 1: on everybody's mental health, but financially benefited from staying home.

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Speaker 3: Yeah, right. It disproportionately impacted the lower income work.

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Speaker 1: Yeah, disproportionately so and it's so unkind and so unfair,

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Speaker 1: and I do think we should have done so much more,

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Speaker 1: but unfortunately I'm not a politician. But what I can

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Speaker 1: do is look at what economists are saying and how

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Speaker 1: that's working. And basically what happened is there were just

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Speaker 1: a whole heap of people who were saving a whole

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Speaker 1: heap of money, and even if they weren't saving money,

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Speaker 1: they were just coasting along and still able to buy.

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Speaker 1: So people who were lower income earning or you know,

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Speaker 1: front facing or didn't have white collar jobs ended up

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Speaker 1: suffering far more than those of us who were, you know,

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Speaker 1: in jobs where we weren't very lucky to be able

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Speaker 1: to carry on business as usual from home.

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Speaker 3: Okay, well said, there v with this increased value of

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Speaker 3: property pretty much across the board, that means then that

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Speaker 3: land is going to also be higher in value at

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Speaker 3: the moment.

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Speaker 1: Yeah, yes, in general across the board. So when you

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Speaker 1: have a look at land, and I mean there is

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Speaker 1: obviously always the risk of buying overvalued land, you need

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Speaker 1: to look at a few things. So you need to

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Speaker 1: look at one, how long you're willing to buy it,

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Speaker 1: and it goes back to our friend Warren Buffett's quote

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Speaker 1: that you said on another podcast very recently, if you

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Speaker 1: wouldn't consider holding it for ten years, you shouldn't hold

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Speaker 1: it for ten minutes. I think the same applies for

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Speaker 1: property as well. So you don't actually want to look

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Speaker 1: directly at the price and be like, oh my god,

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Speaker 1: like that's going to go down twenty or thirty thousand

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Speaker 1: dollars in the next few years. You actually need to

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Speaker 1: look at it over the long term and go, well,

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Speaker 1: what's just going to be worth in ten years? What's

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Speaker 1: my actual intention on purchasing it? And I have lots

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Speaker 1: of conversations with my clients about this because so often

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Speaker 1: they go, vi, when's the best time to buy property?

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Speaker 1: And the answer to that question is when you are

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Speaker 1: personally ready. It's not when the market is ready. It's

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Speaker 1: not when the market is low, it's not when the

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Speaker 1: market is high. It's actually when you personally have the

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Speaker 1: financial stability to service alone and actually take that on

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Speaker 1: with minimal risk. So from my person perspective, I have

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Speaker 1: told clients before buying the peak of the market. Are

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Speaker 1: you saying you're ready right now? Yep, great, no problems,

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Speaker 1: let's go because even if you are paying twenty or

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Speaker 1: thirty thousand dollars over what you feel like it should

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Speaker 1: be worth, you're securing the asset that you wanted for

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Speaker 1: the long term and that's going to pay off over

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Speaker 1: the long term. So from my perspective, like there is

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Speaker 1: a risk of buying overvalued land, But the real question

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Speaker 1: is like how long are you planning on buying this,

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Speaker 1: and should you really be buying an asset that you're

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Speaker 1: planning on disposing of after two or three years, Like

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Speaker 1: is that actually a good idea for you in your

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Speaker 1: personal situation? And maybe it is, I don't know. But

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Speaker 1: at the end of the day, land value is always

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Speaker 1: going to be higher because it has far more potential

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Speaker 1: and ability to grow assets, essentially than an apartment.

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Speaker 3: So you can add more value to a piece.

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Speaker 1: Add your value to a piece of land you actually

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Speaker 1: own it, and there's no like other tenants or other

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Speaker 1: people to take into consideration. We're making that decision unless

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Speaker 1: you're buying like subdivided land, and there might be a

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Speaker 1: body corporative there's three or more properties, but let's not

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Speaker 1: get into that. So it's interesting to actually see how

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Speaker 1: it's valued. But essentially, if you're buying a block of land.

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Speaker 1: It's you and only ug king who makes the decisions

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Speaker 1: about that block of land, pending council approval obviously, But

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Speaker 1: if you went and bought a one bedroom apartment in

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Speaker 1: the Melbourne cbit, like, really, how much can you sell

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Speaker 1: that for when there's such a saturation of similar offerings

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Speaker 1: on the table at that point in time to your offering? Yeah,

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Speaker 1: does that make sense? So like there's volume, but then

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Speaker 1: there's also the inability. You can't just put another bedroom on.

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Speaker 1: What are you gonna do? Knock into somebody else's kitchen,

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Speaker 1: Like rude, don't do that. It's rude, It is illegal,

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Speaker 1: but like mostly rude.

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Speaker 3: Really interesting there V I feel like that's a question

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Speaker 3: that I hear a lot is why because people kind

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Speaker 3: of know at exotally that buying an apartment isn't as

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Speaker 3: financially beneficial as buying a home, but they can't necessarily

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Speaker 3: put their finger on why.

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Speaker 1: It's land. Yeah, the end series always yeah, it comes

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Speaker 1: back to land, And like I mean, at the end

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Speaker 1: of the day, it's also not a bad thing to

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Speaker 1: buy an apartment. And you know, I've done some research

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Speaker 1: and there's a lot to say that Buying land in

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Speaker 1: a not very well developed suburb or a suburb that

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Speaker 1: doesn't have access to good infrastructure or has no real

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Speaker 1: capital growth potential is worse than buying an apartment in

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Speaker 1: a really high yielding area if it's an investment, because

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Speaker 1: you could release it out, like, there's obviously pros and

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Speaker 1: cons to both, and like, you know, if you ask

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Speaker 1: someone who grew up in the fifties, they'll be like,

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Speaker 1: buy land, son, Like, that's a good idea. That's the

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Speaker 1: only way you go. Well, it's not the only way,

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Speaker 1: But what I want is to be educated and understand

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Speaker 1: why one might be valued at more than the other,

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Speaker 1: and then make an educated decision as to which is

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Speaker 1: most accessible for me in which is going to work

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Speaker 1: for my situation. For a lot of us, an apartment

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Speaker 1: might be the perfect fit. It's not to say it's bad.

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Speaker 1: There's just a number of things that I would take

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Speaker 1: into consideration, and if that's a decision that you personally

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Speaker 1: are making. There's an entire episode on the Property Playbook

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Speaker 1: about land versus apartments, So go and listen to that

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Speaker 1: because I've got a few tickets on myself. I think

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Speaker 1: that's a pretty good podcast as well.

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Speaker 3: A lovely little plug there. We are going to go

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Speaker 3: to a quick break now, guys. But on the other

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Speaker 3: side we will be talking about inflation, lender's mortgage insurance,

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Speaker 3: and plenty more. So please don't go anywhere straight back

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Speaker 3: into it, vickid. I'm ready a lot of people at

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Speaker 3: the moment are talking about lm I, lm I, LM ILMAFO.

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Speaker 1: Okay, rocks in this, Okay, moving on lm I. Let's

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Speaker 1: talk what is it lender's mortgage insurance. Please do not

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Speaker 1: be deceived. If you are in the position where you've

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Speaker 1: been speaking to a broker, which you should have done.

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Speaker 1: You should not be organizing alone on your own, because

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Speaker 1: I just feel like having a professional on your team

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Speaker 1: is going to put you in the best possible financial position.

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Speaker 1: But if you're talking to your broker and they're like, look,

433
00:20:49,560 --> 00:20:52,560
Speaker 1: you're going to consider LMI, it's not an insurance for you.

434
00:20:52,640 --> 00:20:55,159
Speaker 1: It doesn't protect you. Gee, You've got to pay for

435
00:20:55,200 --> 00:20:58,920
Speaker 1: it because it protects the lender. Like it's lender's mortgage

436
00:20:58,960 --> 00:21:01,680
Speaker 1: insurance that they're based asking you to take out because

437
00:21:01,720 --> 00:21:04,680
Speaker 1: you're not paying a full deposit. And when we say

438
00:21:04,760 --> 00:21:07,840
Speaker 1: full deposit, it means that you're not paying that full

439
00:21:07,920 --> 00:21:10,840
Speaker 1: twenty percent that most banks ask for when it comes

440
00:21:10,880 --> 00:21:12,879
Speaker 1: to mortgages. And do you know, there are actually a

441
00:21:12,880 --> 00:21:15,080
Speaker 1: fair few people who don't actually have to have a

442
00:21:15,080 --> 00:21:18,800
Speaker 1: full twenty percent deposit, like dentists and doctors and accountants,

443
00:21:18,840 --> 00:21:21,520
Speaker 1: like they can actually get home loans without having to

444
00:21:21,520 --> 00:21:23,439
Speaker 1: pay a full twenty percent because they have like a

445
00:21:23,440 --> 00:21:26,479
Speaker 1: fancy profession. So if that's you, talk to a mortgage

446
00:21:26,480 --> 00:21:28,280
Speaker 1: broker sooner rather than later because they can work that

447
00:21:28,320 --> 00:21:31,440
Speaker 1: out for you. So fancy right. I did not make

448
00:21:31,480 --> 00:21:34,680
Speaker 1: the cut because financial advisor is not nearly as legitimate

449
00:21:34,720 --> 00:21:38,359
Speaker 1: as an accountant, just so you know. But essentially, l

450
00:21:38,400 --> 00:21:41,760
Speaker 1: am I, it's the lender taking out any insurance policy

451
00:21:41,800 --> 00:21:44,720
Speaker 1: against you for the risk of not recovering the full

452
00:21:44,760 --> 00:21:47,159
Speaker 1: outstanding loan balance if you gking can't pay all your

453
00:21:47,160 --> 00:21:49,280
Speaker 1: mortgage back, which makes a lot of sense as to

454
00:21:49,359 --> 00:21:52,439
Speaker 1: why they would want it. But let's do a little example. So,

455
00:21:52,520 --> 00:21:54,600
Speaker 1: as I said before, if you're borrowing more than eighty

456
00:21:54,600 --> 00:21:56,560
Speaker 1: percent of the purchase price, so you don't have it

457
00:21:56,600 --> 00:21:58,800
Speaker 1: the twenty percent deposit, that's the flip side of the

458
00:21:58,800 --> 00:22:02,160
Speaker 1: coin you're going to need to usually pay LMI except

459
00:22:02,160 --> 00:22:05,840
Speaker 1: if you're fancy pants. To calculate an LMI premium, it's

460
00:22:05,880 --> 00:22:08,800
Speaker 1: so simple, Gking, it's not. Actually, you can just google

461
00:22:09,040 --> 00:22:12,200
Speaker 1: LMI calculator and then your state and it will come

462
00:22:12,280 --> 00:22:14,280
Speaker 1: up and you can just do it yourself. But to

463
00:22:14,359 --> 00:22:17,399
Speaker 1: summarize it, you're going to multiply your lm I rate

464
00:22:17,520 --> 00:22:19,360
Speaker 1: by your loan amount. So if you want to buy

465
00:22:19,440 --> 00:22:22,520
Speaker 1: a house, G that's worth let's say five hundred thousand dollars,

466
00:22:22,560 --> 00:22:24,760
Speaker 1: the bank is typically going to make you pay that

467
00:22:24,800 --> 00:22:27,720
Speaker 1: twenty percent deposit, so of five hundred thousand dollars, that

468
00:22:27,760 --> 00:22:30,120
Speaker 1: would be one hundred thousand dollars. But let's say you've

469
00:22:30,160 --> 00:22:32,800
Speaker 1: only saved fifty grand. You're like, look, I have fifty grand,

470
00:22:32,840 --> 00:22:34,880
Speaker 1: but I really want to get into the property market,

471
00:22:35,080 --> 00:22:37,640
Speaker 1: and you've got sufficient income, so they're like, look, looking

472
00:22:37,680 --> 00:22:40,119
Speaker 1: at your income, you can pay back that mortgage. You

473
00:22:40,240 --> 00:22:43,160
Speaker 1: might be able to get LMI and actually take out

474
00:22:43,160 --> 00:22:46,400
Speaker 1: this insurance, pay fifty grand, which is half the deposit

475
00:22:46,480 --> 00:22:48,960
Speaker 1: that you would have usually required, and then they would

476
00:22:49,000 --> 00:22:51,119
Speaker 1: lend you the four hundred and fifty thousand dollars that

477
00:22:51,119 --> 00:22:54,000
Speaker 1: you would need to purchase your home. So G, you've

478
00:22:54,000 --> 00:22:56,840
Speaker 1: got your fifty thousand dollars deposit right, and you need

479
00:22:56,880 --> 00:23:00,000
Speaker 1: to pay LMI on a five hundred thousand dollar property

480
00:23:00,480 --> 00:23:03,119
Speaker 1: you're going to end up in Victoria. I have calculated

481
00:23:03,160 --> 00:23:06,040
Speaker 1: the costs to be twelve thousand, one hundred and ninety

482
00:23:06,080 --> 00:23:09,200
Speaker 1: two dollars. You would then need to pay thirteen hundred

483
00:23:09,240 --> 00:23:12,480
Speaker 1: and seventy three dollars in government fees. There's like a

484
00:23:12,520 --> 00:23:15,719
Speaker 1: few optional costs that I would recommend budgeting into that.

485
00:23:15,840 --> 00:23:18,320
Speaker 1: So I'd probably budget about one thousand dollars for a

486
00:23:18,359 --> 00:23:21,800
Speaker 1: conveyancer and then maybe like four to six hundred dollars

487
00:23:21,800 --> 00:23:23,959
Speaker 1: for a property inspection. You know how I always talk

488
00:23:24,000 --> 00:23:26,919
Speaker 1: about building and pest inspections being really important. And then,

489
00:23:26,960 --> 00:23:29,840
Speaker 1: because you are purchasing under five hundred thousand dollars, so

490
00:23:29,880 --> 00:23:31,840
Speaker 1: you're taking four hundred and fifty thousand DO loan, you

491
00:23:31,840 --> 00:23:33,920
Speaker 1: don't have to pay any stamp duty at this point

492
00:23:34,000 --> 00:23:36,479
Speaker 1: in time, which is very sexy. Whereas if we compare

493
00:23:36,520 --> 00:23:38,760
Speaker 1: that and you're buying the million dollar property because that

494
00:23:38,880 --> 00:23:41,800
Speaker 1: seems to be the average here in Melbourne and in Sydney,

495
00:23:41,840 --> 00:23:44,640
Speaker 1: and you've got one hundred thousand dollars in savings, you'd

496
00:23:44,680 --> 00:23:47,879
Speaker 1: actually pay fifty five thousand dollars worth of stamp duty

497
00:23:48,840 --> 00:23:52,800
Speaker 1: and then forty three thousand, seven hundred and ninety eight

498
00:23:52,840 --> 00:23:55,720
Speaker 1: dollars in LMI, and then you'd have twenty five hundred

499
00:23:55,760 --> 00:23:58,280
Speaker 1: dollars worth of government fees, and then from my budgeting

500
00:23:58,400 --> 00:24:01,680
Speaker 1: or high level budgeting, you still have legals and conveyancing

501
00:24:01,720 --> 00:24:04,680
Speaker 1: at one thousand dollars in property inspection between four hundred

502
00:24:04,680 --> 00:24:07,359
Speaker 1: and six hundred. Right, So the amount is massive and

503
00:24:07,440 --> 00:24:10,560
Speaker 1: elm I can obviously creep up. But the thing about

504
00:24:10,640 --> 00:24:12,560
Speaker 1: el am I is so many people scoff and go,

505
00:24:12,640 --> 00:24:15,200
Speaker 1: oh my god, Victoria, I'm not going to pay forty

506
00:24:15,240 --> 00:24:19,720
Speaker 1: three thousand, seven hundred dollars in LMI, that's insane. You go, yes,

507
00:24:19,880 --> 00:24:22,080
Speaker 1: but like, what does it mean to you to be

508
00:24:22,200 --> 00:24:25,200
Speaker 1: in the market earlier? And would you pay that amount

509
00:24:25,240 --> 00:24:28,000
Speaker 1: of money to not have to spend the next you know,

510
00:24:28,520 --> 00:24:32,080
Speaker 1: ten years potentially saving up another one hundred thousand dollars

511
00:24:32,080 --> 00:24:34,399
Speaker 1: to have that full twenty percent? Like is this worth

512
00:24:34,400 --> 00:24:36,959
Speaker 1: it for you? And at the moment if you see,

513
00:24:37,040 --> 00:24:40,400
Speaker 1: you know, doing some not so complex but quite straightforward

514
00:24:40,400 --> 00:24:43,240
Speaker 1: calculations we've seen over the last twelve months. We said

515
00:24:43,280 --> 00:24:46,800
Speaker 1: it earlier, twenty three percent property growth twenty three percent

516
00:24:46,880 --> 00:24:50,040
Speaker 1: return on a mortgage, which on average at the moment

517
00:24:50,080 --> 00:24:53,080
Speaker 1: is two point five percent. That's pretty good numbers. So

518
00:24:53,359 --> 00:24:56,080
Speaker 1: I feel like too many people look at ELMI and go,

519
00:24:56,119 --> 00:24:58,000
Speaker 1: oh my gosh, I'm never going to pay that, it's

520
00:24:58,000 --> 00:25:00,480
Speaker 1: a waste of money, whereas some other people look at

521
00:25:00,520 --> 00:25:02,359
Speaker 1: it and go, no, that's the cost of me getting

522
00:25:02,400 --> 00:25:04,920
Speaker 1: in the market today, and I can make money laiter

523
00:25:05,000 --> 00:25:06,439
Speaker 1: down the track and I can make it back, and

524
00:25:06,480 --> 00:25:09,120
Speaker 1: it might be okay for some people. It's just far

525
00:25:09,240 --> 00:25:12,159
Speaker 1: more feasible because that l am I you don't have

526
00:25:12,200 --> 00:25:14,600
Speaker 1: to pay it upfront. It can actually be rolled into

527
00:25:14,640 --> 00:25:17,760
Speaker 1: your mortgage, which means that paying it off is much

528
00:25:17,800 --> 00:25:20,520
Speaker 1: easier than often saving for a lot of people, because

529
00:25:20,560 --> 00:25:23,639
Speaker 1: mortgages often act as like a forced savings plan in

530
00:25:23,680 --> 00:25:25,920
Speaker 1: a way. I'm not here saying that, oh my gosh,

531
00:25:25,920 --> 00:25:28,160
Speaker 1: you absolutely should be paying l am I or not, because,

532
00:25:28,240 --> 00:25:30,679
Speaker 1: to be honest, it's personal preference, Like it makes me

533
00:25:30,720 --> 00:25:34,000
Speaker 1: feel arguably quite uncomfortable paying for something that you know,

534
00:25:34,280 --> 00:25:36,600
Speaker 1: Steve and I could save for and if it took

535
00:25:36,680 --> 00:25:39,439
Speaker 1: us a little bit longer, which it did, g to

536
00:25:39,640 --> 00:25:42,560
Speaker 1: save for a property, that's what we wanted to do.

537
00:25:43,080 --> 00:25:45,520
Speaker 1: But as a financial advisor, if I weigh up the

538
00:25:45,560 --> 00:25:48,879
Speaker 1: pros and cons, there are absolutely circumstances where for clients

539
00:25:48,920 --> 00:25:51,520
Speaker 1: paying l AM I was absolutely in their best interests.

540
00:25:51,800 --> 00:25:54,040
Speaker 1: And then there are circumstances where I'm like, no, mate,

541
00:25:54,040 --> 00:25:55,720
Speaker 1: your cash flow is so good, just save for a

542
00:25:55,760 --> 00:25:57,639
Speaker 1: few more months and you won't have to pay it.

543
00:25:57,920 --> 00:26:00,439
Speaker 1: So it's really really personal. But if I was you

544
00:26:00,560 --> 00:26:02,960
Speaker 1: and I was thinking about using LMI, I would be

545
00:26:03,000 --> 00:26:05,960
Speaker 1: googling an LMI calculator and how that works in my

546
00:26:06,000 --> 00:26:09,040
Speaker 1: particular state. Most banks have them, so use whatever one

547
00:26:09,080 --> 00:26:10,080
Speaker 1: works best for you.

548
00:26:10,119 --> 00:26:13,320
Speaker 3: What if you're someone v who only has say a

549
00:26:13,440 --> 00:26:17,560
Speaker 3: five percent deposit available to them, and they're not on

550
00:26:17,600 --> 00:26:22,640
Speaker 3: a cracking salary, say they're beneath the national average, would

551
00:26:22,720 --> 00:26:25,040
Speaker 3: you say that lender's mortgage insurance is not a good

552
00:26:25,040 --> 00:26:27,760
Speaker 3: option for them because it's just providing them with a

553
00:26:27,800 --> 00:26:30,159
Speaker 3: mortgage that they can't necessarily afford, or would they not

554
00:26:30,200 --> 00:26:31,440
Speaker 3: be given that anyway?

555
00:26:31,600 --> 00:26:34,280
Speaker 1: No, you can absolutely do it with a five percent.

556
00:26:34,400 --> 00:26:37,240
Speaker 1: It depends on what bank you're going to as well.

557
00:26:37,400 --> 00:26:39,400
Speaker 1: And to be honest, this is where the best port

558
00:26:39,400 --> 00:26:41,719
Speaker 1: of call is going to be a broker, not a

559
00:26:41,760 --> 00:26:44,640
Speaker 1: financial advisor. So a mortgage broker is going to go, yeah,

560
00:26:44,640 --> 00:26:46,719
Speaker 1: all right, ge, if you've got five percent, these are

561
00:26:46,720 --> 00:26:49,040
Speaker 1: the banks that'll lend you, these are the ones that won't. Like,

562
00:26:49,320 --> 00:26:53,919
Speaker 1: mortgage broking can actually be relatively complex, especially when it

563
00:26:53,960 --> 00:26:56,440
Speaker 1: comes to the semantics of one the loan, but then

564
00:26:56,480 --> 00:26:59,320
Speaker 1: to the loan functionality, like do you want offset or redraw?

565
00:26:59,640 --> 00:27:01,119
Speaker 1: How do you want at to work? Are you buying

566
00:27:01,119 --> 00:27:04,000
Speaker 1: the property outright for yourself you're buying it in a trust?

567
00:27:04,119 --> 00:27:06,560
Speaker 1: Like what does this actually look like for you? And

568
00:27:06,600 --> 00:27:09,560
Speaker 1: then to add insult to injury, it's obviously far harder

569
00:27:09,600 --> 00:27:11,959
Speaker 1: for people who are self employed or have just started

570
00:27:11,960 --> 00:27:14,000
Speaker 1: their own businesses to get loans, and there are far

571
00:27:14,119 --> 00:27:16,439
Speaker 1: less banks that are willing to lend you in that

572
00:27:16,560 --> 00:27:19,919
Speaker 1: situation as well, So it can be really frustrating. And

573
00:27:19,920 --> 00:27:22,200
Speaker 1: that's why I think getting involved with a mortgage broker,

574
00:27:22,560 --> 00:27:25,280
Speaker 1: even if you're not ready to buy, I think is

575
00:27:25,359 --> 00:27:28,600
Speaker 1: really smart. Because I've had a couple of clients, and

576
00:27:28,640 --> 00:27:31,160
Speaker 1: I keep saying clients g because I have a mortgage

577
00:27:31,200 --> 00:27:35,080
Speaker 1: broking company now and spoiler, we are having two very

578
00:27:35,119 --> 00:27:38,120
Speaker 1: gorgeous women join the team as of the first of July,

579
00:27:38,200 --> 00:27:40,320
Speaker 1: who I can't wait to introduce to you. So I

580
00:27:40,400 --> 00:27:43,080
Speaker 1: have had clients come to me g and go, oh

581
00:27:43,080 --> 00:27:45,600
Speaker 1: my god, Bee. I wish I'd spoken to a broker earlier.

582
00:27:45,840 --> 00:27:49,240
Speaker 1: I have been busting my life away trying to save

583
00:27:49,320 --> 00:27:51,440
Speaker 1: for another two years when I could have just paid

584
00:27:51,560 --> 00:27:53,080
Speaker 1: l Ami and I worked it out. That would have

585
00:27:53,080 --> 00:27:56,000
Speaker 1: been better for my situation. So it all depends on

586
00:27:56,080 --> 00:27:59,800
Speaker 1: what you know circumstances you're in. But I genuinely believe

587
00:27:59,800 --> 00:28:02,200
Speaker 1: in having a chat with a broker earlier and establishing

588
00:28:02,200 --> 00:28:05,320
Speaker 1: that relationship up front. Like we've spoken about it before

589
00:28:05,320 --> 00:28:07,520
Speaker 1: on the podcast, but I think when was the last

590
00:28:07,520 --> 00:28:09,640
Speaker 1: time we spoke about the Hour of power? George King

591
00:28:09,800 --> 00:28:13,120
Speaker 1: would have been it's been a while, but that still exists.

592
00:28:13,119 --> 00:28:16,879
Speaker 1: You're breaking it back. No, it's still been okay, well

593
00:28:16,920 --> 00:28:19,800
Speaker 1: when anyway, I just stopped talking about it. But the

594
00:28:19,880 --> 00:28:22,600
Speaker 1: Hour of power essentially is this hour where you get

595
00:28:22,760 --> 00:28:25,600
Speaker 1: a dedicated hour with a mortgage broker to sit down,

596
00:28:25,680 --> 00:28:29,160
Speaker 1: do your serviceability, do a savings plan, organize your budget,

597
00:28:29,280 --> 00:28:31,359
Speaker 1: organize your cash flow to make sure that you're in

598
00:28:31,400 --> 00:28:35,080
Speaker 1: the best possible position to purchase a house without feeling

599
00:28:35,200 --> 00:28:38,000
Speaker 1: like you're overwhelmed or just trying to get that fifteen

600
00:28:38,040 --> 00:28:41,480
Speaker 1: minute free conversation with a broker that'll actually sit you

601
00:28:41,520 --> 00:28:43,800
Speaker 1: down and be like, right, this is exactly the plan

602
00:28:44,000 --> 00:28:46,080
Speaker 1: you need to follow to get into your first home.

603
00:28:46,120 --> 00:28:47,440
Speaker 1: This is what we can do, and this is how

604
00:28:47,480 --> 00:28:49,200
Speaker 1: we can do it. But the hour of Power is

605
00:28:49,200 --> 00:28:52,000
Speaker 1: basically like the spoon fed version of getting into your

606
00:28:52,040 --> 00:28:54,360
Speaker 1: first property with a broker on your team. But you

607
00:28:54,440 --> 00:28:56,240
Speaker 1: do pay for that session, and I think that is

608
00:28:56,280 --> 00:28:58,800
Speaker 1: absolutely worth its weight in gold. Like everyone who's done

609
00:28:58,800 --> 00:29:01,480
Speaker 1: it has always said like, I am shocked that this

610
00:29:01,640 --> 00:29:05,440
Speaker 1: is so good. But back to your question before, when

611
00:29:05,480 --> 00:29:07,480
Speaker 1: you're saying can you get in with five percent, Yes,

612
00:29:07,520 --> 00:29:09,239
Speaker 1: you'll just pay more el am I so on that

613
00:29:09,280 --> 00:29:12,200
Speaker 1: five hundred thousand dollar property, instead of paying that twelve

614
00:29:12,200 --> 00:29:15,000
Speaker 1: thousand dollars in l AMI, you'll now pay sixteen. That's

615
00:29:15,040 --> 00:29:18,959
Speaker 1: anous So it makes sense, right, not too shabby, Not

616
00:29:19,000 --> 00:29:21,200
Speaker 1: too shabby, according to g Okay.

617
00:29:20,960 --> 00:29:23,880
Speaker 3: Good rundown of al Ami there V. Let's move on though,

618
00:29:23,920 --> 00:29:25,920
Speaker 3: and chat about guaranteurs.

619
00:29:26,800 --> 00:29:30,320
Speaker 1: The privilege is showing from the worst exactly right.

620
00:29:30,400 --> 00:29:32,080
Speaker 3: It is a bit of a should not be one.

621
00:29:32,240 --> 00:29:34,680
Speaker 3: What are your thoughts on guaranteurs and also can you

622
00:29:34,880 --> 00:29:37,000
Speaker 3: explain them for anyone who's not across them.

623
00:29:37,000 --> 00:29:39,800
Speaker 1: Okay, so first thing, first, we have an entire episode.

624
00:29:39,800 --> 00:29:42,560
Speaker 1: This is just like a property playbook pitch right telling

625
00:29:42,640 --> 00:29:45,720
Speaker 1: you how good the property playbook podcast is. But there's

626
00:29:45,760 --> 00:29:48,320
Speaker 1: an entire episode on guarrant tour loans and how they work.

627
00:29:48,440 --> 00:29:51,240
Speaker 1: But summary is guarantor loan works as a way to

628
00:29:51,280 --> 00:29:53,920
Speaker 1: get you into the property market sooner, and you might

629
00:29:54,000 --> 00:29:56,520
Speaker 1: need a small light and in some cases no deposit

630
00:29:56,600 --> 00:29:59,560
Speaker 1: at all if you have a guaranteur that has enough

631
00:29:59,600 --> 00:30:03,280
Speaker 1: equity in their property. A guaranteur usually a family member

632
00:30:03,360 --> 00:30:05,600
Speaker 1: here in Australia. It usually has to be like a

633
00:30:05,680 --> 00:30:07,400
Speaker 1: mum or a dad. It can't be a sibling or

634
00:30:07,440 --> 00:30:09,840
Speaker 1: an aunt or an uncle or even a friend who

635
00:30:10,120 --> 00:30:12,760
Speaker 1: is really kind that can't work. It has to be

636
00:30:12,840 --> 00:30:15,280
Speaker 1: a family member and they offer up the equity in

637
00:30:15,320 --> 00:30:18,760
Speaker 1: their own home as additional security for your loan. So

638
00:30:19,080 --> 00:30:21,600
Speaker 1: it might be you know, one hundred percent security if

639
00:30:21,680 --> 00:30:24,320
Speaker 1: you know they are boomers and brought their house for

640
00:30:24,360 --> 00:30:27,120
Speaker 1: the twenty two thousand dollars in nineteen sixty eight. Now

641
00:30:27,120 --> 00:30:30,960
Speaker 1: it's worth three million dollars. But a guaranteur is essentially

642
00:30:30,960 --> 00:30:34,280
Speaker 1: going to guarantee that you'll pay the money back, because

643
00:30:34,320 --> 00:30:36,800
Speaker 1: as much as they're offering up their equity, they're also

644
00:30:36,920 --> 00:30:39,920
Speaker 1: putting on the table that if Georgia King doesn't pay

645
00:30:39,960 --> 00:30:42,560
Speaker 1: off her loan, they'll take the brunt of that and

646
00:30:42,600 --> 00:30:45,240
Speaker 1: take over the repayments before they have to recover it

647
00:30:45,280 --> 00:30:47,960
Speaker 1: from somewhere else. So it is a lot of responsibility

648
00:30:47,960 --> 00:30:49,920
Speaker 1: and you do need to think about it. A guarante

649
00:30:50,080 --> 00:30:52,600
Speaker 1: loan is a privilege that most people don't actually have,

650
00:30:52,720 --> 00:30:54,520
Speaker 1: but if you're in the lucky position of having it,

651
00:30:54,560 --> 00:30:58,200
Speaker 1: please don't feel guilt. Like this community is not about going,

652
00:30:58,240 --> 00:31:00,800
Speaker 1: oh my gosh, I can't believe they have it's so easy,

653
00:31:00,800 --> 00:31:03,440
Speaker 1: because you never know somebody's circumstances and just because they

654
00:31:03,480 --> 00:31:05,960
Speaker 1: had the property thing down pat does not mean their

655
00:31:06,120 --> 00:31:08,800
Speaker 1: entire life is sorted on the flip side. And this

656
00:31:08,880 --> 00:31:11,560
Speaker 1: community is all about lifting everybody up. So like, I

657
00:31:11,560 --> 00:31:13,600
Speaker 1: want to celebrate if you've got a guarant tour loan,

658
00:31:13,640 --> 00:31:16,280
Speaker 1: even if it's not something that's completely accessible to me.

659
00:31:16,600 --> 00:31:18,880
Speaker 1: I think it's important to understand it. But I do

660
00:31:18,920 --> 00:31:22,360
Speaker 1: feel like there has been some very unnecessary commentary recently

661
00:31:22,720 --> 00:31:25,680
Speaker 1: about people calling other people who have guarant tour loans

662
00:31:25,800 --> 00:31:28,760
Speaker 1: entitled or it was easy for them, because just because

663
00:31:28,760 --> 00:31:31,480
Speaker 1: the deposit part we're skipped does not mean that paying

664
00:31:31,480 --> 00:31:35,400
Speaker 1: off a mortgage for anyone is easy. So to summarize

665
00:31:35,440 --> 00:31:37,640
Speaker 1: all of that, a guaranteur can be a very good

666
00:31:37,680 --> 00:31:40,400
Speaker 1: way to get into the market. Again, it means that

667
00:31:40,480 --> 00:31:42,600
Speaker 1: you do have to have a parent in your life

668
00:31:42,640 --> 00:31:45,240
Speaker 1: that is financially secure enough to be able to offer

669
00:31:45,280 --> 00:31:47,720
Speaker 1: that up. It does mean that they can't sell that

670
00:31:47,800 --> 00:31:50,720
Speaker 1: property while being a guaranteur. But the cool thing that

671
00:31:50,840 --> 00:31:53,560
Speaker 1: I think a lot of people don't realize about guarant

672
00:31:53,560 --> 00:31:56,680
Speaker 1: tour loan is they're not the guaranteur on that loan forever.

673
00:31:57,120 --> 00:31:59,680
Speaker 1: That the guaranteur on that loan until you pay enough

674
00:31:59,720 --> 00:32:02,000
Speaker 1: off to meet the deposit, and then they can be

675
00:32:02,080 --> 00:32:04,920
Speaker 1: released as a guaranteur. So I've seen a lot of people,

676
00:32:05,080 --> 00:32:08,560
Speaker 1: especially my clients who get guaranteur loans, create like a

677
00:32:08,600 --> 00:32:11,600
Speaker 1: little contract with their parents to say, all right, in

678
00:32:11,680 --> 00:32:14,960
Speaker 1: two years, once I have paid down X amount, you

679
00:32:15,000 --> 00:32:17,400
Speaker 1: can be released as a guaranteur. Because the parents are like, look,

680
00:32:17,440 --> 00:32:19,840
Speaker 1: I just don't want this going on forever because I

681
00:32:19,920 --> 00:32:22,080
Speaker 1: might need to retire, or I might want to access

682
00:32:22,120 --> 00:32:25,239
Speaker 1: the equity for my own wealth creation. So I think

683
00:32:25,320 --> 00:32:28,320
Speaker 1: that that's pretty cool. But then the other important thing

684
00:32:28,320 --> 00:32:31,320
Speaker 1: to note is that the guaranteur has absolutely no requirement

685
00:32:31,360 --> 00:32:34,400
Speaker 1: to make any repayments on that loan on your behalf.

686
00:32:34,880 --> 00:32:37,400
Speaker 1: But if you're not able to make repayments and the

687
00:32:37,400 --> 00:32:39,920
Speaker 1: bank's been chasing you, Lalenda will then turn to the

688
00:32:39,920 --> 00:32:42,680
Speaker 1: guaranteur to make repayments, which kind of makes sense because

689
00:32:42,680 --> 00:32:45,080
Speaker 1: they said Gking was good for it, and then maybe

690
00:32:45,080 --> 00:32:47,200
Speaker 1: Gking was being a bit naughty, so they're going to

691
00:32:47,240 --> 00:32:49,160
Speaker 1: go to the person who said she was good for it.

692
00:32:49,200 --> 00:32:51,160
Speaker 1: But in this way, it is completely possible to get

693
00:32:51,200 --> 00:32:52,760
Speaker 1: a home loan even when you have a small or

694
00:32:52,800 --> 00:32:53,760
Speaker 1: maybe even no deposit.

695
00:32:53,880 --> 00:32:57,080
Speaker 3: There are also lots of first home bias schemes floating

696
00:32:57,080 --> 00:32:58,080
Speaker 3: around at the moment, aren't there.

697
00:32:58,080 --> 00:33:00,400
Speaker 1: Be, oh my gosh, so many? And if you are

698
00:33:00,480 --> 00:33:02,760
Speaker 1: a first home buyer and you have not been looking

699
00:33:02,840 --> 00:33:05,920
Speaker 1: at these schemes, please do. I know a lot of

700
00:33:05,960 --> 00:33:08,760
Speaker 1: people don't realize that they might be eligible, but you

701
00:33:08,840 --> 00:33:13,280
Speaker 1: totally are. But essentially four major national government schemes and

702
00:33:13,360 --> 00:33:16,120
Speaker 1: at the beginning of the financial year of twenty twenty

703
00:33:16,160 --> 00:33:19,320
Speaker 1: two slash twenty twenty three, the government is planning on

704
00:33:19,400 --> 00:33:22,560
Speaker 1: providing a total of fifty thousand places each year under

705
00:33:22,680 --> 00:33:25,880
Speaker 1: the various schemes. The first one is the First Home Guarantee,

706
00:33:25,880 --> 00:33:28,640
Speaker 1: which used to be called the First Home Loan Deposit Scheme,

707
00:33:29,040 --> 00:33:31,880
Speaker 1: and right now they have thirty five thousand places each

708
00:33:31,920 --> 00:33:34,960
Speaker 1: in every single year available, and it allows first home

709
00:33:35,000 --> 00:33:38,280
Speaker 1: buyers with deposits as low as five percent to qualify

710
00:33:38,360 --> 00:33:41,120
Speaker 1: for a home loan without having to pay that pesky LMI.

711
00:33:41,560 --> 00:33:44,120
Speaker 1: So if you have five percent deposit, you won't have

712
00:33:44,160 --> 00:33:46,160
Speaker 1: to pay that what was it, sixteen thousand dollars in

713
00:33:46,280 --> 00:33:48,880
Speaker 1: LMI if you're paying for a five hundred thousand dollar property.

714
00:33:49,040 --> 00:33:51,760
Speaker 1: So essentially the government will act as the mortgage insurer.

715
00:33:51,840 --> 00:33:54,920
Speaker 1: For example, if a borrower provides a deposit worth five

716
00:33:54,960 --> 00:33:58,920
Speaker 1: percent of the property value, the government's actually guaranteeing fifteen

717
00:33:58,960 --> 00:34:01,840
Speaker 1: percent of that property value, making the risk to the

718
00:34:01,920 --> 00:34:04,560
Speaker 1: lender exactly the same as if the borrower provided a

719
00:34:04,600 --> 00:34:07,440
Speaker 1: twenty percent deposit. It's kind of good, very neat. The

720
00:34:07,520 --> 00:34:10,880
Speaker 1: next is the Family Home Guarantee, which is a little

721
00:34:10,880 --> 00:34:13,760
Speaker 1: bit more niche. There are only five thousand additional places

722
00:34:13,800 --> 00:34:16,400
Speaker 1: a year under the Family Home Guarantee from the first

723
00:34:16,400 --> 00:34:19,280
Speaker 1: of July twenty twenty two to the thirtieth of June

724
00:34:19,400 --> 00:34:22,200
Speaker 1: twenty twenty five, so it hasn't even started yet. It's

725
00:34:22,239 --> 00:34:25,040
Speaker 1: coming up in July. This is an initiative that exists

726
00:34:25,040 --> 00:34:28,360
Speaker 1: to help eligible single parents with dependents purchase a family

727
00:34:28,360 --> 00:34:31,920
Speaker 1: home sooner, which we love. And under this scheme, single

728
00:34:31,960 --> 00:34:34,920
Speaker 1: parents can buy home with only two percent deposit without

729
00:34:34,960 --> 00:34:37,040
Speaker 1: having to pay elamite. How good's that?

730
00:34:37,040 --> 00:34:37,799
Speaker 3: That's pretty good.

731
00:34:37,840 --> 00:34:40,160
Speaker 1: There's obviously so many more semantics to these that you

732
00:34:40,200 --> 00:34:42,600
Speaker 1: need to consider and obviously can't purchase over a certain

733
00:34:42,640 --> 00:34:45,680
Speaker 1: amount and rah rah. But like, if you're a single parent,

734
00:34:46,200 --> 00:34:49,120
Speaker 1: saving up twenty percent is a ridiculous thing to think

735
00:34:49,200 --> 00:34:52,319
Speaker 1: you could do in your own lifetime. Whereas you might

736
00:34:52,360 --> 00:34:54,400
Speaker 1: actually have the cash flow to afford a mortgage, you

737
00:34:54,440 --> 00:34:56,520
Speaker 1: actually just don't have heaps of free cash flow to

738
00:34:56,560 --> 00:34:58,319
Speaker 1: save up enough for a deposit, and that could be

739
00:34:58,480 --> 00:35:01,160
Speaker 1: usually the big hurdle that you're looking So I don't know,

740
00:35:01,280 --> 00:35:03,480
Speaker 1: I really like that one. The next one is the

741
00:35:03,520 --> 00:35:07,320
Speaker 1: Regional Home Guarantee. Double the places, so ten thousand places

742
00:35:07,400 --> 00:35:09,960
Speaker 1: under the new Regional Home Guarantee from the first of

743
00:35:10,000 --> 00:35:13,839
Speaker 1: October this year to the thirtieth of June twenty twenty three,

744
00:35:14,280 --> 00:35:16,240
Speaker 1: So this scheme is going to be open to first

745
00:35:16,239 --> 00:35:19,239
Speaker 1: home buyers and anyone who has not owned property within

746
00:35:19,239 --> 00:35:21,880
Speaker 1: the last five years, which is an interesting I guess

747
00:35:22,360 --> 00:35:25,960
Speaker 1: addition to that guarantee, and the legislation for that is

748
00:35:26,000 --> 00:35:28,200
Speaker 1: currently still pending, so we're not sure if we'll get

749
00:35:28,239 --> 00:35:30,799
Speaker 1: that one, but we will know very soon and is

750
00:35:30,880 --> 00:35:33,000
Speaker 1: very likely to pass, otherwise I wouldn't have bothered to

751
00:35:33,000 --> 00:35:35,239
Speaker 1: mention it. Gking on the pod brilliant. And then the

752
00:35:35,280 --> 00:35:37,879
Speaker 1: next is the first Home super Saviors scheme, which, as

753
00:35:37,920 --> 00:35:40,120
Speaker 1: you guys know, I think is a pretty good money win.

754
00:35:40,520 --> 00:35:42,719
Speaker 1: The first time Super Savior scheme, if you haven't heard

755
00:35:42,719 --> 00:35:45,319
Speaker 1: about it before, allows first home buyers to save their

756
00:35:45,360 --> 00:35:48,480
Speaker 1: home deposit for their first home inside their super account,

757
00:35:48,719 --> 00:35:51,080
Speaker 1: which means that you get to take advantage of concessional

758
00:35:51,200 --> 00:35:54,760
Speaker 1: tax rates. Right, So, as we know, tax rates inside

759
00:35:54,760 --> 00:35:57,960
Speaker 1: superannuation of fifteen percent, but most of us will probably

760
00:35:58,000 --> 00:36:00,279
Speaker 1: be paying thirty two and a half cents on the

761
00:36:00,320 --> 00:36:03,120
Speaker 1: dollar for tax, and that means that you get a

762
00:36:03,160 --> 00:36:06,319
Speaker 1: pretty good rebate. So under this scheme, the government has

763
00:36:06,360 --> 00:36:09,319
Speaker 1: increased the total amount of savings borrowers can release from

764
00:36:09,360 --> 00:36:11,920
Speaker 1: Super from thirty thousand dollars which was over two years,

765
00:36:11,960 --> 00:36:14,200
Speaker 1: to fifty thousand dollars over three years, which I think

766
00:36:14,280 --> 00:36:16,480
Speaker 1: is far more. I don't know. That just makes a

767
00:36:16,520 --> 00:36:19,200
Speaker 1: lot more sense to me, G. Because who in their

768
00:36:19,280 --> 00:36:22,280
Speaker 1: right mind in Melbourne or Sydney only has thirty thousand

769
00:36:22,320 --> 00:36:23,360
Speaker 1: dollars for a home deposit.

770
00:36:24,200 --> 00:36:26,360
Speaker 3: You'd be buying a tent in the woods.

771
00:36:26,520 --> 00:36:30,080
Speaker 1: But my calculations are that if you're in the situation

772
00:36:30,280 --> 00:36:32,920
Speaker 1: where you're making use of the thirty thousand dollars, not

773
00:36:33,000 --> 00:36:35,279
Speaker 1: the fifty thousand dollars only because I have the thirty

774
00:36:35,280 --> 00:36:37,839
Speaker 1: thousand dollar example in my head. If g you were

775
00:36:37,840 --> 00:36:40,800
Speaker 1: on a seventy thousand dollar income and you were planning

776
00:36:40,840 --> 00:36:43,239
Speaker 1: on saving you know, over three years for a home

777
00:36:43,280 --> 00:36:45,640
Speaker 1: deposit and wanted to get to about you know, thirty

778
00:36:45,719 --> 00:36:50,239
Speaker 1: thousand dollars, if you did that inside superannuation on a

779
00:36:50,280 --> 00:36:53,880
Speaker 1: total of like thirty thousand dollars, by contributing fifteen thousand

780
00:36:53,880 --> 00:36:57,200
Speaker 1: dollars each financial year after three years, you would have

781
00:36:57,200 --> 00:37:00,520
Speaker 1: saved six two hundred and ten dollars more a standard

782
00:37:00,560 --> 00:37:02,400
Speaker 1: saving account if it was in your SUF it was

783
00:37:02,400 --> 00:37:04,400
Speaker 1: in your superhot instead of if it was in your

784
00:37:04,400 --> 00:37:07,960
Speaker 1: savings account. So to me, that makes a lot of

785
00:37:08,239 --> 00:37:10,959
Speaker 1: financial sense to consider it. If you're planning on buying

786
00:37:11,000 --> 00:37:13,920
Speaker 1: your first home. There are obviously a few caveats, like

787
00:37:13,960 --> 00:37:16,080
Speaker 1: you can't pull it out without proof that you are

788
00:37:16,120 --> 00:37:19,200
Speaker 1: purchasing a property, and there's a higher marginal tax rate

789
00:37:19,400 --> 00:37:21,319
Speaker 1: if you do pull it out, so you can't just

790
00:37:21,400 --> 00:37:24,319
Speaker 1: like whip it back out without you know, giving them

791
00:37:24,480 --> 00:37:27,600
Speaker 1: some money. But if you're planning on purchasing a property,

792
00:37:27,640 --> 00:37:30,759
Speaker 1: and hypothetically, if it was coming up to the end

793
00:37:30,800 --> 00:37:34,840
Speaker 1: of a financial year, you could dump money into superannuation

794
00:37:35,120 --> 00:37:37,520
Speaker 1: if it was aligned to your values in the middle

795
00:37:37,520 --> 00:37:39,120
Speaker 1: of June, and then the same in the middle of

796
00:37:39,200 --> 00:37:42,319
Speaker 1: July and make both financial years and then buy a

797
00:37:42,360 --> 00:37:45,719
Speaker 1: house within a few months. So technically, if it's pre

798
00:37:45,960 --> 00:37:49,000
Speaker 1: June right now and you're listening to this podcast, you

799
00:37:49,040 --> 00:37:51,440
Speaker 1: can actually make use of both of those fifteen thousand

800
00:37:51,480 --> 00:37:54,960
Speaker 1: dollars amounts before the end of this actual calendar the year.

801
00:37:55,160 --> 00:37:57,600
Speaker 1: Little hack, well hack, if you wanted to do it

802
00:37:57,719 --> 00:37:59,399
Speaker 1: only from experience, my love.

803
00:38:00,200 --> 00:38:02,799
Speaker 3: Very good. That's second last question for the day.

804
00:38:02,840 --> 00:38:03,759
Speaker 1: All right, I'll allow it.

805
00:38:03,920 --> 00:38:06,960
Speaker 3: Let's talk about the word on everyone's lips inflation.

806
00:38:07,280 --> 00:38:09,000
Speaker 1: Oh, that is not what I thought you were going

807
00:38:09,040 --> 00:38:11,200
Speaker 1: to say, but yeah, let's talk inflation, my love.

808
00:38:11,320 --> 00:38:14,440
Speaker 3: At the time of recording, inflation sits at three point

809
00:38:14,480 --> 00:38:18,040
Speaker 3: five percent and the RBA doesn't expect it to fall

810
00:38:18,120 --> 00:38:20,640
Speaker 3: back with it it's two to three percent range until

811
00:38:20,800 --> 00:38:23,680
Speaker 3: the middle of next year. We've talked inflation of the

812
00:38:23,719 --> 00:38:26,640
Speaker 3: show many times before. But for anyone who's new to

813
00:38:26,680 --> 00:38:29,360
Speaker 3: the show or wasn't listening, can you please give us

814
00:38:29,480 --> 00:38:33,440
Speaker 3: a little recap who wasn't listening, You've nailed in Yeah, exactly,

815
00:38:33,520 --> 00:38:35,080
Speaker 3: it's been literally three years.

816
00:38:35,120 --> 00:38:38,600
Speaker 1: Gee, in literally three years. I'll get there one day.

817
00:38:38,840 --> 00:38:41,920
Speaker 1: But inflation is essentially how much things increase in price,

818
00:38:42,080 --> 00:38:44,400
Speaker 1: So the cost of the goods and services that you

819
00:38:44,560 --> 00:38:47,440
Speaker 1: purchase on a daily basis g and how much they

820
00:38:47,520 --> 00:38:51,560
Speaker 1: increase over time. And obviously the best example of this

821
00:38:51,719 --> 00:38:54,480
Speaker 1: is the McDonald's twenty cent cone or George, you're younger

822
00:38:54,480 --> 00:38:57,880
Speaker 1: than me, so you reckon it's the McDonald's fifty cent cone.

823
00:38:57,960 --> 00:39:00,919
Speaker 1: But what are they now? Like a dollar something else?

824
00:39:01,360 --> 00:39:03,200
Speaker 1: I remember when they were were they two dollars for

825
00:39:03,239 --> 00:39:04,040
Speaker 1: a little while there?

826
00:39:04,040 --> 00:39:05,799
Speaker 3: Hooracity don't like it.

827
00:39:06,040 --> 00:39:09,359
Speaker 1: But essentially, it's how much goods and services increase over

828
00:39:09,400 --> 00:39:12,120
Speaker 1: time and you would have heard this like the amount

829
00:39:12,120 --> 00:39:14,399
Speaker 1: of people saying, oh my gosh, well, in my day,

830
00:39:14,480 --> 00:39:18,399
Speaker 1: I bought my first house for fourteen thousand dollars. Yeah, okay, Paul,

831
00:39:18,440 --> 00:39:20,880
Speaker 1: sit down, it's now worth two million dollars. And I

832
00:39:20,920 --> 00:39:23,360
Speaker 1: am not getting into the semantics of this argument just

833
00:39:23,360 --> 00:39:27,279
Speaker 1: because you could afford it, but it's important to understand

834
00:39:27,360 --> 00:39:30,040
Speaker 1: because the most well known measure of inflation that is

835
00:39:30,040 --> 00:39:33,600
Speaker 1: not a McDonald's twenty cent cone is the consumer Price index,

836
00:39:33,719 --> 00:39:36,920
Speaker 1: weighted average of the price of thousands of different goods

837
00:39:36,920 --> 00:39:40,200
Speaker 1: and services that are commonly purchased by households, which are

838
00:39:40,200 --> 00:39:44,160
Speaker 1: then grouped into literally eighty seven different categories like meals

839
00:39:44,200 --> 00:39:47,160
Speaker 1: out and takeaway food, and women's clothes and domestic travel.

840
00:39:47,200 --> 00:39:50,160
Speaker 1: And that's how we get to CPI. So I've probably

841
00:39:50,360 --> 00:39:53,360
Speaker 1: said that in passing before, but essentially CPI is consumer

842
00:39:53,400 --> 00:39:57,400
Speaker 1: price index, and then the two largest items in CPI

843
00:39:57,680 --> 00:40:00,880
Speaker 1: are the cost of purchasing newly built dwelling and rent

844
00:40:01,320 --> 00:40:04,759
Speaker 1: go figure, which collectively make up about fifteen percent of

845
00:40:04,800 --> 00:40:09,080
Speaker 1: the index. So essentially that is what inflation is and

846
00:40:09,120 --> 00:40:11,960
Speaker 1: how it is calculated and why it is calculated, and

847
00:40:12,320 --> 00:40:16,959
Speaker 1: TLDR it is how much things increase each year in price.

848
00:40:16,840 --> 00:40:19,480
Speaker 3: And how does that impact the home buyer's market.

849
00:40:19,680 --> 00:40:22,640
Speaker 1: It means houses are going to increase each year in

850
00:40:22,719 --> 00:40:26,040
Speaker 1: line with how much things are increasing in price. In general,

851
00:40:26,440 --> 00:40:29,799
Speaker 1: things are more expensive. Things just get more expensive, and

852
00:40:29,840 --> 00:40:32,120
Speaker 1: we should have seen this coming because inflation has been

853
00:40:32,160 --> 00:40:34,760
Speaker 1: happening right under our noses for our entire lifetimes.

854
00:40:34,840 --> 00:40:37,080
Speaker 3: Can you give us just a quick little like inspo

855
00:40:37,239 --> 00:40:39,680
Speaker 3: for anyone that's not in the home market yet but

856
00:40:39,840 --> 00:40:43,480
Speaker 3: wants to be one day, but is still just feeling hopeless.

857
00:40:43,640 --> 00:40:45,680
Speaker 1: Honestly, I think it's one of those things that is

858
00:40:45,719 --> 00:40:49,719
Speaker 1: still being worked out. I completely understand how disheartening it

859
00:40:49,800 --> 00:40:53,400
Speaker 1: is when we talk about property and it feels entirely inaccessible,

860
00:40:53,680 --> 00:40:56,160
Speaker 1: But I think it's also about embracing how much positivity

861
00:40:56,160 --> 00:40:58,520
Speaker 1: and how much good is coming out of twenty twenty

862
00:40:58,520 --> 00:41:00,560
Speaker 1: two as well. Right, so, you might not be able

863
00:41:00,560 --> 00:41:03,200
Speaker 1: to afford a home, but we now have the ability

864
00:41:03,239 --> 00:41:06,799
Speaker 1: to travel the entire world, while my grandmother she never

865
00:41:06,840 --> 00:41:09,480
Speaker 1: got that opportunity, you know, Like, I feel like we

866
00:41:09,560 --> 00:41:12,279
Speaker 1: are so connected and technology has advanced, and there are

867
00:41:12,280 --> 00:41:15,760
Speaker 1: so many different things in this world that are gorgeous

868
00:41:15,760 --> 00:41:18,719
Speaker 1: and lovely, and we should be embracing. I think that

869
00:41:18,920 --> 00:41:21,479
Speaker 1: too many times we weigh our self worth on whether

870
00:41:21,520 --> 00:41:23,799
Speaker 1: we can afford a property or not, and that's a

871
00:41:23,840 --> 00:41:26,720
Speaker 1: really ridiculous measure of how good we are in this world.

872
00:41:26,800 --> 00:41:31,120
Speaker 1: So from my perspective, property means absolutely nothing. It's actually

873
00:41:31,160 --> 00:41:33,680
Speaker 1: about your wealth creation journey and what you're doing to

874
00:41:33,719 --> 00:41:36,080
Speaker 1: save and invest and create a life for future you.

875
00:41:36,120 --> 00:41:40,120
Speaker 1: And if that involves property, fantastic. If it doesn't, whatever,

876
00:41:40,640 --> 00:41:43,719
Speaker 1: But it also can feel really terrible. G If you

877
00:41:44,000 --> 00:41:46,879
Speaker 1: just can't get into the market, EG me all right,

878
00:41:46,920 --> 00:41:49,440
Speaker 1: but talk to a good broker. I think that's it. Okay,

879
00:41:49,520 --> 00:41:52,200
Speaker 1: go to our website, introduce the self to Kate or Nicky.

880
00:41:52,400 --> 00:41:54,560
Speaker 1: Both of them are absolutely brilliant, and we'll put you

881
00:41:54,600 --> 00:41:56,400
Speaker 1: in the best possible position perfection.

882
00:41:56,840 --> 00:41:59,000
Speaker 3: All right, let's go through the disclaimer.

883
00:41:59,320 --> 00:42:00,440
Speaker 1: Who am I, What do I do?

884
00:42:00,560 --> 00:42:03,160
Speaker 3: G King and go the advice chair on. She's on

885
00:42:03,200 --> 00:42:05,880
Speaker 3: the Money is general in nature. It does not consider

886
00:42:05,960 --> 00:42:09,680
Speaker 3: your individual circumstances. She's on the Money exists purely for

887
00:42:09,800 --> 00:42:12,680
Speaker 3: educational purposes and should not be relied upon to make

888
00:42:12,719 --> 00:42:16,960
Speaker 3: an investment or financial decision. And we promise Victoria Divide

889
00:42:17,040 --> 00:42:21,120
Speaker 3: is an authorized representative of in Focused Securities Australia Proprietary

890
00:42:21,160 --> 00:42:24,800
Speaker 3: Limited ABN four seven zero nine seven seven nine seven

891
00:42:25,040 --> 00:42:28,000
Speaker 3: zero four nine AFSL two three six five two three.

892
00:42:28,400 --> 00:42:35,759
Speaker 3: We will see you on Friday, friends,