Speaker 1: Just before we get started, we'd like to acknowledge and
Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.
Speaker 1: They're the traditional custodians of the lands, the waterways and
Speaker 1: the skies all across Australia. We thank you for sharing
Speaker 1: and for caring for the land on which we are
Speaker 1: able to learn. We pay respects to elders past and present,
Speaker 1: and we share our friendship and our kindness.
Speaker 2: She's on the Money, She's on the Money.
Speaker 3: Hello, and welcome to She's on the Money, the podcast
Speaker 3: for millennials who want financial freedom. My name is Georgia King,
Speaker 3: and joining me as she does each and every Wednesday,
Speaker 3: is Victoria Divine V. How are we doll?
Speaker 1: Hello? Thanks for having me today.
Speaker 3: Are talking buying property? Some cold and hard stats to
Speaker 3: kick us off, I'm ready. Did you know there were
Speaker 3: almost five hundred and ninety eight thousand house and unit
Speaker 3: sales across Australia over the year ending August twenty twenty one.
Speaker 3: What That's the highest number of annual sales since two
Speaker 3: thousand and four, and it's a forty two percent lift
Speaker 3: on the annual number of sales over the previous twelve
Speaker 3: month period.
Speaker 1: That's a feisty stat I reckon, that's fisty, big. I
Speaker 1: was trying to be cool with my language.
Speaker 3: I love it and I welcome it. But that's that's
Speaker 3: a lot of sales considering how expensive everything is at
Speaker 3: the moment.
Speaker 1: But I'm sad about it. But at the same time,
Speaker 1: it kind of makes sense. We've all heard how crazy
Speaker 1: the property market has been recently, so I think it's Yeah,
Speaker 1: I don't think it's a bad thing at the same
Speaker 1: time as being absolutely terrifying for anyone wanting to enter
Speaker 1: the market.
Speaker 3: And I guess it's supply and demand, right, Like, that's why.
Speaker 1: Exact prices exactly. Gee, all of this is exactly why
Speaker 1: I thought it was super important to talk about this today. Look,
Speaker 1: today's episode is basically another pep talk from me to
Speaker 1: you and to everybody who listens, and a little bit
Speaker 1: of a values check in. It's so easy to fall
Speaker 1: into other people's value systems and then out of our
Speaker 1: own completely. It is also way too easy to buy
Speaker 1: into what the media are saying to Please don't forget.
Speaker 1: Do you remember it, like mid pandemic, they were like
Speaker 1: talking about our housing price is post pandemic absolutely going
Speaker 1: to go through the floor. It was plastered across the
Speaker 1: front page of literally every major publication news publication that
Speaker 1: is in the country. And then now they're like, oh,
Speaker 1: what do you mean, we didn't say that. I don't
Speaker 1: know what you're talking about. Market is wild, Millennials can't
Speaker 1: get in and they're eating too much avo toast. Again,
Speaker 1: like it's just the media likes to hype things up,
Speaker 1: and at the end of the day, the market comes
Speaker 1: down to two things. Supply demand. That's it. You hit
Speaker 1: the nail on the head before. Supply is low, demand
Speaker 1: is high. We all want the same thing, we're all
Speaker 1: working towards similar goals, which shifts the price of those
Speaker 1: things up right, And it just makes logical sense. Things
Speaker 1: are more expensive if there's only one on offer at
Speaker 1: the moment. Cost of can of coke going to be
Speaker 1: the same whereof you go because it's in abundance. Cost
Speaker 1: of a very expensive fancy bottle of Grange wine, well,
Speaker 1: it depends where it is and how many are out there.
Speaker 1: Is it on a corner block like who knows? But
Speaker 1: it's one of those things where I think too often
Speaker 1: we play too much into what the media is saying,
Speaker 1: but then also take it too seriously, like the media
Speaker 1: is there for entertainment purposes, Like, obviously there's some level
Speaker 1: of truth to it, But do you really think they're
Speaker 1: reporting on housing prices because they're just so worried about
Speaker 1: your personal education? Georgia King, Well, they probably want your
Speaker 1: eyeballs for that reason to sell advertising. Ah haha, same page.
Speaker 1: Keep listening to our podcast and listen to our ad
Speaker 1: So today we are going to talk about our values
Speaker 1: and how they align with external pressures in society and
Speaker 1: the media, and what is happening in the market. And
Speaker 1: we're going to give you some things to consider when
Speaker 1: deciding whether you're going to purchase a property or do
Speaker 1: you do it now or do you wait and save
Speaker 1: for a bigger deposit. We're going to talk about inflation,
Speaker 1: We're going to talk about available grants, increasing land value,
Speaker 1: and so so so much more. G King, Are you
Speaker 1: ready love it?
Speaker 3: It's been a while since you and I have done
Speaker 3: a property Podvase, so I am quite excited for this
Speaker 3: to pepper my questions your way.
Speaker 1: It's almost like we stopped doing property podcasts when we
Speaker 1: got our own property podcast.
Speaker 3: On that v is the property playbook coming back anytime soon.
Speaker 1: It'll be back second half of this year. But don't
Speaker 1: tell anyone I told you fabulous.
Speaker 3: Okay, let's begin today's potty by discussing a few common
Speaker 3: catch phrases or mabercart if you like, well, yes, myth,
Speaker 3: I want you to respond to the following. Here we go.
Speaker 1: Okay, I'm ready.
Speaker 3: Rent money is dead money, No it's not.
Speaker 1: It's a lifestyle expent brilliant.
Speaker 3: The Australian dream, No.
Speaker 1: Sir, not a thing. Who's dream? Your dream? The Australian dream?
Speaker 1: What about Georgia's dreams? What about her dreams?
Speaker 3: Man?
Speaker 1: You look pressed. We will take this offline later. But
Speaker 1: in the narrowest sense, the Australian dream is literally the
Speaker 1: belief that in Australia, home ownership can lead to a
Speaker 1: be life and is an expression of success and security.
Speaker 1: Owning property, at the end of the day, is not
Speaker 1: security if it messes over your finances, and rant can
Speaker 1: often be better in some personal circumstances. I think it's
Speaker 1: quite interesting as well, because you know, we just talked
Speaker 1: about having your own values and aligning to your own things,
Speaker 1: and then we're like, but it's the Great Australian dream like,
Speaker 1: let's just stick to our own dreams, not like the
Speaker 1: Great Australian or Great American dream like. Unfortunately, everything in
Speaker 1: the entire world has changed since that was the reality,
Speaker 1: and we can't expect the values of somebody in the
Speaker 1: literal fifties to be guiding what we want today.
Speaker 3: What is the current state of the market, Like, is
Speaker 3: it still pretty grizzly on perspective?
Speaker 1: Buy it's not that bad, look, it's pretty grizzly. In fact,
Speaker 1: I attended an auction last weekend last weekend a couple
Speaker 1: of weekends ago, and the house that was being auctioned off,
Speaker 1: which was around the corner from my parents, and obviously
Speaker 1: we were all pervy whent four hundred thousand dollars over
Speaker 1: what they said it was going to go over, Like,
Speaker 1: let's contextualize that for a moment. That's literally someone else's house,
Speaker 1: Like somebody paid for an entire other house. They were like,
Speaker 1: it was so nice they needed to buy it twice,
Speaker 1: like insane to think obviously it was a bit more pricey,
Speaker 1: Like that's why all there, because we were all herby,
Speaker 1: but four hundred thousand dollars over what it was worth
Speaker 1: Like that to me sounds insane. So they did say
Speaker 1: that the property market would actually end up bottoming out,
Speaker 1: but it hasn't happened yet. It is actually starting to boom.
Speaker 1: In fact, in the quarter up to December twenty twenty one,
Speaker 1: so the last three months of last year, the weighted
Speaker 1: average of the eight capital cities residential property price index
Speaker 1: rose four point seven percent that quarter and rose twenty
Speaker 1: three point seven percent in the last twelve months. That
Speaker 1: means property in general g increased by twenty three percent,
Speaker 1: which pretty good investment if you have the ability to
Speaker 1: actually get into that investment asset class. The total value
Speaker 1: of residential dwellings in Australia rose five one hundred and
Speaker 1: twelve point six billion dollars to nine thousand, nine hundred
Speaker 1: and one point six billion dollars this quarter, and the
Speaker 1: mean price of residential dwellings actually rows forty four thousand
Speaker 1: dollars to nine hundred and twenty thousand, one hundred dollars.
Speaker 1: Like that is so far out of the scope of
Speaker 1: so many people's budgets, it's not funny. Like let's break
Speaker 1: this down a little bit more. G you want to
Speaker 1: buy a million dollar property great, that seems like a
Speaker 1: wild number, but in most capital cities, a million dollars
Speaker 1: is the mean, right, you want a full twenty percent deposit.
Speaker 1: How long is it going to take you to save
Speaker 1: two hundred thousand dollars the rest of my life? Yeah,
Speaker 1: But like that's just it is so far out of
Speaker 1: touch with what is actually achievable, especially when the average
Speaker 1: salary is eighty two thousand dollars a year in Melbourne, Like,
Speaker 1: eighty two thousand dollars, What can you save each and
Speaker 1: every single month. Maybe if you're lucky, you're saving like
Speaker 1: two thousand dollars on that salary. That's assuming that you
Speaker 1: don't have any dependence, no personal debt, and the ability
Speaker 1: to save, which is a privilege that is denied to
Speaker 1: many of us. Like so many of us have financial
Speaker 1: commitments or think about the amount of people who are
Speaker 1: in our community who have to spend money on medical
Speaker 1: expenses and medications, and like it's just so crippling to
Speaker 1: me mentally to look at that and go, that's just
Speaker 1: so unachievable.
Speaker 3: It is extremely intimidating looking at that as someone who's
Speaker 3: not yet in the market fee And we've spoken about
Speaker 3: this on the podcast before, and I mean, I don't
Speaker 3: think we've spoken about this in probably six months or so,
Speaker 3: you and I, I mean on this podcast, and the
Speaker 3: fact that the numbers are still so far out of reach.
Speaker 3: It's in this house went four hundred thousand dollars over reserves.
Speaker 1: But the facts not encouraged to have that disposable capital.
Speaker 1: You just look at it and you're like, what, but
Speaker 1: that's SAE.
Speaker 3: Has that because it's obviously not first hold bias.
Speaker 1: No, absolutely not. And I'm assuming I don't know this
Speaker 1: for sure, but I'm assuming that the property that I
Speaker 1: saw go four hundred thousand dollars over was brought by
Speaker 1: a developer because it looked like, you know, was down
Speaker 1: in my parents place near the beach, and it looked
Speaker 1: like one of those properties that they'll probably stick to townhouses
Speaker 1: on and disappoint every other resident in that suburb, you know.
Speaker 1: So it's it makes sense, but it's just really, I
Speaker 1: guess disheartening to see as somebody who you know, I
Speaker 1: run this community and I want all of you to
Speaker 1: be successful, and so many of you have the value
Speaker 1: of purchasing a home. It breaks my heart to think that,
Speaker 1: you know, you're not going to achieve your goals. But
Speaker 1: at the same time, it doesn't necessarily mean that you're
Speaker 1: behind financially. And I'd hate for you to think that,
Speaker 1: oh my gosh, if I can't achieve this goal, i
Speaker 1: haven't been able to make it or I'm not successful,
Speaker 1: because that's not the case at all. I think we've
Speaker 1: defined success based on somebody else's history, and now owning
Speaker 1: property is more of a luxury than a necessity or
Speaker 1: a hygiene factor as it used to be. In the
Speaker 1: same way that you joke about, you know, owning a yacht,
Speaker 1: like it might become the norm to not be able
Speaker 1: to afford it. And there are actually lots of cities
Speaker 1: around the world where owning property that's not normal. Like
Speaker 1: you look at New York, basically nobody there who is
Speaker 1: living there lives in a property that they own because
Speaker 1: they genuinely can't afford it. So it might be becoming
Speaker 1: our new norm, and that, you know, it's disappointing when
Speaker 1: accessibility was so accessible historically. But I just, yeah, breaks
Speaker 1: my heart a little bit. But let's get into a
Speaker 1: little bit of the background of what has actually been
Speaker 1: happening up until now. And I've got a few dot points,
Speaker 1: so let me run through those for you Gking. First
Speaker 1: things first, is that housing turnover, which is the annual
Speaker 1: amount of homes that are for sale as a percentage
Speaker 1: of the total dwellings that exist, trended lower from late
Speaker 1: twenty fifteen as credit and lending conditions ended up tightening.
Speaker 1: You know how we had the whole Royal Commission and
Speaker 1: we looked into it, and therefore it was harder to
Speaker 1: get a home loan, and then housing affordability became more challenging,
Speaker 1: and transaction costs like stamp duty actually became increasingly expensive
Speaker 1: as prices rose. Then national turnover reached a record low
Speaker 1: in June twenty nineteen, when only three point seven percent
Speaker 1: of Australian homes transacted over the year. Since the credit
Speaker 1: policies have now loosened and mortgage rates have now reduced
Speaker 1: a record lows. Thank Fully, this has encouraged Australians and
Speaker 1: you know, our community to participate in the housing market,
Speaker 1: which has been good. So it's not as though it's
Speaker 1: just like the last twelve months that have been hard.
Speaker 1: It's actually been the better part of seven or eight years.
Speaker 1: And then to add insult to injury, a higher rate
Speaker 1: of household saving since March twenty twenty has boosted consumers
Speaker 1: deposit levels, which is really good, but it's also boosted
Speaker 1: their mortgage serviceability, which means they're over paying for property
Speaker 1: because they just want to get in. While government incentives
Speaker 1: like the stamp duty concessions that are currently on offer
Speaker 1: and deposit guarantees have also supported demand, so it makes
Speaker 1: sense that people are trying to pay more for properties
Speaker 1: because they're like, Wow, I've got this extra casholder that
Speaker 1: I've saved over the panide and now I want to
Speaker 1: put it towards a house. And if there are enough
Speaker 1: people doing that, that's obviously going to boost prices up
Speaker 1: and change the way you know, supply and demand works.
Speaker 1: And then by the end of August twenty twenty one,
Speaker 1: housing turnover had reason to five point six percent, which
Speaker 1: is the highest rate since December two thousand and nine.
Speaker 1: So all of these base is saying that it's not
Speaker 1: slowing down. Unfortunately. Sorry sorry sorry, but imagine if just
Speaker 1: not eating smash Diver was actually the answer, that podcast
Speaker 1: would have been like three seconds.
Speaker 3: Imagine. So they riddled me this through the pandemic or
Speaker 3: the Panini Panini you're still trying to push that and
Speaker 3: coin that, and I love that. No respect that.
Speaker 1: You don't though, there's not a lot of respect to
Speaker 1: this table right now.
Speaker 3: The pandemic, a lot of people lost their jobs, they
Speaker 3: took pay cuts, they were greatly impacted financially. It follows
Speaker 3: as the media assumed, and we all assume, that the
Speaker 3: market would crash. I just don't understand why it's gone up.
Speaker 3: I guess as you just outline, like supply and demand
Speaker 3: and all of these different things have happened, but I'm
Speaker 3: just confused as to who is buying these homes.
Speaker 1: Look, I think that we really need to look at,
Speaker 1: you know, what happened during the pandemic in a little
Speaker 1: bit more black and white term. So I think that
Speaker 1: the media really played into what we visually saw as
Speaker 1: the pandemic, because if you look at it, yes, thousands
Speaker 1: of people lost their jobs. I am not underplaying that
Speaker 1: there was job seeker, there was job keeper. Like this
Speaker 1: was hot on either politician's minds. It was on the
Speaker 1: media like that's what we were talking about, because the
Speaker 1: media didn't have heaps of other content to push. But
Speaker 1: also those stories are far more interesting than you know,
Speaker 1: Victoria Devine who got to work from home and now
Speaker 1: just couldn't go to the office. And I think that
Speaker 1: there are so many stories similar to mine where you know,
Speaker 1: and I feel massive guilt for that because I'm like
Speaker 1: far out, like I, you know, and I tried to
Speaker 1: do as much as I could. But I was okay
Speaker 1: through COVID and arguably was in the incredibly privileged position
Speaker 1: of being able to save a little bit more during
Speaker 1: that period of time because it wasn't paying for parking,
Speaker 1: wasn't catching the train, you know, I wasn't having to
Speaker 1: put fuel in my car because I was working from
Speaker 1: home and the type of job I have is online
Speaker 1: in your ears, Georgia, and it meant that I got
Speaker 1: to work from home. But that privilege wasn't something everybody experienced.
Speaker 1: And the fact that so many people were, you know,
Speaker 1: unable to work doesn't take away from the fact that
Speaker 1: there were so many people who just had corporate jobs
Speaker 1: who you know, maybe were planning on buying a house
Speaker 1: in the next five years. Their additional savings meant that
Speaker 1: they were able to buy it three years early. So
Speaker 1: I think once we weren't stuck in our homes anymore,
Speaker 1: people were like, you know what, I've got so many
Speaker 1: different values now. I think there was a massive increase
Speaker 1: in the amount of people who were like, no, I
Speaker 1: actually do want to buy a house. I didn't think
Speaker 1: I wanted to, Now I do. I don't want to
Speaker 1: live in an apartment. I want space, I want land,
Speaker 1: And that seems to be for a lot of people
Speaker 1: buying property far more preferable people are now buying further out,
Speaker 1: pushing out regional property prices because they're like, now I
Speaker 1: can work from home. G I've learnt so much about it.
Speaker 1: So I think that as much as we visually see
Speaker 1: so many people who had suffered through that, and like,
Speaker 1: there's no downplaying that, it's absolutely messed up when it
Speaker 1: comes to the property market. There are so many people
Speaker 1: who are first home buyers or second home buyers or
Speaker 1: even third home buyers who got to sit in that
Speaker 1: little white collar bubble where they weren't actually financially impacted
Speaker 1: in any way, shape or form. In fact, they were benefited,
Speaker 1: you know, not in general because I think I played
Speaker 1: on everybody's mental health, but financially benefited from staying home.
Speaker 3: Yeah, right. It disproportionately impacted the lower income work.
Speaker 1: Yea disproportionately so, and it's so unkind and so unfair,
Speaker 1: and I do think we should have done so much more,
Speaker 1: But unfortunately I'm not a politician. But what I can
Speaker 1: do is look at what economists are saying and how
Speaker 1: that's working. And basically what happened is there were just
Speaker 1: a whole heap of people who were saving a whole
Speaker 1: heap of money, and even if they weren't saving money,
Speaker 1: they were just coasting along and still able to buy.
Speaker 1: So people who were lower income earning or you know,
Speaker 1: front facing or didn't have white collar jobs ended up
Speaker 1: suffering far more than those of us who were, you know,
Speaker 1: in jobs where we weren't very lucky to be able
Speaker 1: to carry on business as usual from home.
Speaker 3: Okay, well said there v with this increased value of
Speaker 3: property pretty much across the board, that means then that
Speaker 3: land is going to also be higher in value at
Speaker 3: the moment.
Speaker 1: Yeah, yes, in general across the board. So when you
Speaker 1: have a look at land, and I mean there is
Speaker 1: obviously always the risk of buying overvalued land, you need
Speaker 1: to look at a few things. So you need to
Speaker 1: look at one, how long you're willing to buy it,
Speaker 1: and It goes back to our friend Warren Buffett's quote
Speaker 1: that you said on another podcast very recently, if you
Speaker 1: wouldn't consider holding it for ten years, you shouldn't hold
Speaker 1: it for ten minutes. I think the same applies for
Speaker 1: property as well. So you don't actually want to look
Speaker 1: directly at the price and be like, oh my god,
Speaker 1: like that's going to go down twenty or thirty thousand
Speaker 1: dollars in the next few years. You actually need to
Speaker 1: look at it over the long term and go, well,
Speaker 1: what's just going to be worth in ten years? What's
Speaker 1: my actual intention on purchasing it? And I have lots
Speaker 1: of conversations with my clients about this because so often
Speaker 1: they go, vi, when's the best time to buy property?
Speaker 1: And the answer to that question is when you are
Speaker 1: personally ready. It's not when the market is ready. It's
Speaker 1: not when the market is low, it's not when the
Speaker 1: market is high. It's actually when you personally have the
Speaker 1: financial stability to service alone and actually take that on
Speaker 1: with minimal risk. So from my person perspective, I have
Speaker 1: told clients before buying the peak of the market. Are
Speaker 1: you saying you're ready right now? Yep? Great, No problems
Speaker 1: let's go. Because even if you are paying twenty or
Speaker 1: thirty thousand dollars over what you feel like it should
Speaker 1: be worth, you're securing the asset that you wanted for
Speaker 1: the long term, and that's going to pay off over
Speaker 1: the long term. So from my perspective, like, there is
Speaker 1: a risk of buying overvalued land, But the real question
Speaker 1: is like how long are you planning on buying this,
Speaker 1: and should you really be buying an asset that you're
Speaker 1: planning on disposing of after two or three years, Like
Speaker 1: is that actually a good idea for you in your
Speaker 1: personal situation? And maybe it is, I don't know. But
Speaker 1: at the end of the day, land value is always
Speaker 1: going to be higher because it has far more potential
Speaker 1: and ability to grow assets essentially than an apartment.
Speaker 3: So you can add more value to a piece.
Speaker 1: Add your value to a piece of land you actually
Speaker 1: own it, and there's no like other tenants or other
Speaker 1: people to take into consideration. We're making that decision unless
Speaker 1: you're buying like subdivided land, and there might be a
Speaker 1: body corporative there's three or more properties, but let's not
Speaker 1: get into that. So it's interesting to actually see how
Speaker 1: it's valued, but Essentially, if you're buying a block of land,
Speaker 1: it's you and only ug king who makes the decisions
Speaker 1: about that block of land, pending council approval obviously, But
Speaker 1: if you went and bought a one bedroom apartment in
Speaker 1: the Melbourne cbit, like, really, how much can you sell
Speaker 1: that for when there's such a saturation of similar offerings
Speaker 1: on the table at that point in time to your offering? Yeah,
Speaker 1: does that make sense? So like there's volume, but then
Speaker 1: there's also the inability. You can't just put another bedroom on.
Speaker 1: What are you gonna do? Knock into somebody else's kitchen? Like, rude,
Speaker 1: don't do that. It's rude, It is illegal, but like
Speaker 1: mostly rude.
Speaker 3: Really interesting there v I feel like that's a question
Speaker 3: that I hear a lot is why because people kind
Speaker 3: of know at exotally that buying an apartment isn't as
Speaker 3: financially beneficial as buying a home, but they can't necessarily
Speaker 3: put their finger on why.
Speaker 1: It's land. Yeah, the end series always yeah, it comes
Speaker 1: back to land, And like I mean, at the end
Speaker 1: of the day, it's also not a bad thing to
Speaker 1: buy an apartment, And you know, I've done some research
Speaker 1: and there's a lot to say that buying land in
Speaker 1: a not very well developed suburb or a suburb that
Speaker 1: doesn't have access to good infrastructure or has no real
Speaker 1: capital growth potential is worse than buying an apartment in
Speaker 1: a really high yielding area if it's an investment, because
Speaker 1: you could release it out, Like, there's obviously pros and
Speaker 1: cons to both, and like, you know, if you ask
Speaker 1: someone who grew up in the fifties, they'll be like,
Speaker 1: buy land, sun, Like that's a good idea. That's the
Speaker 1: only way you go. Well, it's not the only way.
Speaker 1: But what I want is to be educated and understand
Speaker 1: why one might be valued at more than the other,
Speaker 1: and then make an educated decision as to which is
Speaker 1: most accessible for me, in which is going to work
Speaker 1: for my situation. For a lot of us, an apartment
Speaker 1: might be the perfect fit. It's not to say it's bad.
Speaker 1: There's just a number of things that I would take
Speaker 1: into consideration, and if that's a decision that you personally
Speaker 1: are making. There's an entire episode on the Property Playbook
Speaker 1: about land versus apartments, So go and listen to that
Speaker 1: because I've got a few tickets on myself. I think
Speaker 1: that's a pretty good podcast as well.
Speaker 3: A lovely little plug there. We are going to go
Speaker 3: to a quick break now, guys, But on the other
Speaker 3: side we will be talking about inflation, lender's mortgage insurance,
Speaker 3: and plenty more. So please don't go anywhere straight back
Speaker 3: into it, vickid.
Speaker 1: I'm ready.
Speaker 3: A lot of people at the moment are talking about
Speaker 3: lm I, lm I, LM ILMAFO.
Speaker 1: Okay, okay, moving on lm I. Let's talk what is
Speaker 1: it lender's mortgage insurance. Please do not be deceived. If
Speaker 1: you are in the position where you've been speaking to
Speaker 1: a broker, which you should have done. You should not
Speaker 1: be organizing alone on your own, because I just feel
Speaker 1: like having a professional on your team is going to
Speaker 1: put you in the best possible financial position. But if
Speaker 1: you're talking to your broker and they're like, look, you're
Speaker 1: going to consider LMI, it's not an insurance for you.
Speaker 1: It doesn't protect you. Gee, You've got to pay for
Speaker 1: it because it protects the lender. Like it's lenders mortgage
Speaker 1: insurance that they're based asking you to take out because
Speaker 1: you're not paying a full deposit. And when we say
Speaker 1: full deposit, it means that you're not paying that full
Speaker 1: twenty percent that most banks ask for when it comes
Speaker 1: to mortgages. And do you know, there are actually a
Speaker 1: fair few people who don't actually have to have a
Speaker 1: full twenty percent deposit, like dentists and doctors and accountants,
Speaker 1: like they can actually get home loans without having to
Speaker 1: pay a full twenty percent because they have like a
Speaker 1: fancy profession. So if that's you, talk to a mortgage
Speaker 1: broker sooner rather than later because they can work that
Speaker 1: out for you. So fancy right. I did not make
Speaker 1: the cut because financial advisor is not nearly as legitimate
Speaker 1: as an accountant, just so you know. But essentially, l
Speaker 1: am I, it's the lender taking out any insurance policy
Speaker 1: against you for the risk of not recovering the full
Speaker 1: outstanding loan balance if ugking can't pay all your mortgage back,
Speaker 1: which makes a lot of sense as to why they
Speaker 1: would want it. But let's do a little example. So,
Speaker 1: as I said before, if you're borrowing more than eighty
Speaker 1: percent of the purchase price, so you don't have it
Speaker 1: the twenty percent deposit, that's the flip side of the
Speaker 1: coin you're going to need to usually pay LMI, except
Speaker 1: if you're fancy pants to calculate an LMI premium, it's
Speaker 1: so simple, Gking, it's not. Actually, you can just google
Speaker 1: LMI calculator and then your state and it will come
Speaker 1: up and you can just do it yourself. But to
Speaker 1: summarize it, you're going to multiply your lm I rate
Speaker 1: by your loan amount. So if you want to buy
Speaker 1: a house, G. That's worth let's say five hundred thousand dollars,
Speaker 1: the bank is typically going to make you pay that
Speaker 1: twenty percent deposit, so of five hundred thousand dollars, that
Speaker 1: would be one hundred thousand dollars. But let's say you've
Speaker 1: only saved fifty grand. You're like, look, I have fifty grand,
Speaker 1: but I really want to get into the property market,
Speaker 1: and you've got sufficient income, so they're like, look, looking
Speaker 1: at your income, you can pay back that mortgage. You
Speaker 1: might be able to get LMI and actually take out
Speaker 1: this insurance, pay fifty grand, which is half the deposit
Speaker 1: that you would have usually required, and then they would
Speaker 1: lend you the four hundred and fifty thousand dollars that
Speaker 1: you would need to purchase your home. So G, you've
Speaker 1: got your fifty thousand dollars deposit right, and you need
Speaker 1: to pay LMI on a five hundred thousand dollar property
Speaker 1: you're going to end up in Victoria. I have calculated
Speaker 1: the costs to be twelve thousand, one hundred and ninety
Speaker 1: two dollars. You would then need to pay thirteen hundred
Speaker 1: and seventy three dollars in government fees. There's like a
Speaker 1: few optional costs that I would recommend budgeting into that.
Speaker 1: So I'd probably budget about one thousand dollars for a
Speaker 1: conveyancer and then maybe like four to six hundred dollars
Speaker 1: for a property inspection. You know how I always talk
Speaker 1: about building and pest inspections being really important. And then,
Speaker 1: because you are purchasing under five hundred thousand dollars, so
Speaker 1: you're taking four hundred and fifty thousand DO loan, you
Speaker 1: don't have to pay any stamp duty at this point
Speaker 1: in time, which is very sexy. Whereas if we compare
Speaker 1: that and you're buying the million dollar property because that
Speaker 1: seems to be the average here in Melbourne and in Sydney,
Speaker 1: and you've got one hundred thousand dollars in savings, you'd
Speaker 1: actually pay fifty five thousand dollars worth of stamp duty
Speaker 1: and then forty three thousand, seven hundred and ninety eight
Speaker 1: dollars in LMI, and then you'd have twenty five hundred
Speaker 1: dollars worth of government fees. And then from my budgeting
Speaker 1: or high level budgeting, you still have legals and conveyancing
Speaker 1: at one thousand dollars in property inspection between four hundred
Speaker 1: and six hundred. Right, So the amount is massive and
Speaker 1: elm I can obviously creep up. But the thing about
Speaker 1: el am I is so many people scoff and go,
Speaker 1: oh my god, Victoria, I'm not going to pay forty
Speaker 1: three thousand, seven hundred dollars in LMI. That's insane. You go, yes,
Speaker 1: but like, what does it mean to you to be
Speaker 1: in the market earlier? And would you pay that amount
Speaker 1: of money to not have to spend the next you know,
Speaker 1: ten years potentially saving up another one hundred thousand dollars
Speaker 1: to have that full twenty percent? Like is this worth
Speaker 1: it for you? And at the moment if you see,
Speaker 1: you know, doing some not so complex but quite straightforward
Speaker 1: calculations we've seen over the last twelve months. We said
Speaker 1: it earlier, twenty three percent property growth twenty three percent
Speaker 1: return on a mortgage, which on average at the moment
Speaker 1: is two point five percent. That's pretty good numbers. So
Speaker 1: I feel like too many people look at ELMI and go,
Speaker 1: oh my gosh, I'm never going to pay that, it's
Speaker 1: a waste of money, whereas some other people look at
Speaker 1: it and go, no, that's the cost of me getting
Speaker 1: in the market today, and I can make money laiter
Speaker 1: down the track and I can make it back, and
Speaker 1: it might be okay for some people. It's just far
Speaker 1: more feasible because that l am I you don't have
Speaker 1: to pay it upfront. It can actually be rolled into
Speaker 1: your mortgage, which means that paying it off is much
Speaker 1: easier than often saving for a lot of people, because
Speaker 1: mortgages often act as like a forced savings plan in
Speaker 1: a way. I'm not here saying that, oh my gosh,
Speaker 1: you absolutely should be paying l am I or not, because,
Speaker 1: to be honest, it's personal preference. Like it makes me
Speaker 1: feel arguably quite uncomfortable paying for something that you know,
Speaker 1: Steve and I could save for and if it took
Speaker 1: us a little bit longer, which it did, g to
Speaker 1: save for a property, that's what we wanted to do.
Speaker 1: But as a financial advisor, if I weigh up the
Speaker 1: pros and cons, there are absolutely circumstances where for clients
Speaker 1: paying l AM I was absolutely in their best interests.
Speaker 1: And then there are circumstances where I'm like, no, mate,
Speaker 1: your cash flow is so good, just save for a
Speaker 1: few more months and you won't have to pay it.
Speaker 1: So it's really really personal. But if I was you
Speaker 1: and I was thinking about using LMI, I would be
Speaker 1: googling an LMI calculator and how that works in my
Speaker 1: particular state. Most banks have them, so use whatever one
Speaker 1: works best for you.
Speaker 3: What if you're someone v who only has say a
Speaker 3: five percent deposit available to them, and they're not on
Speaker 3: a cracking salary, say they're beneath the national average, would
Speaker 3: you say that lender's mortgage insurance is not a good
Speaker 3: option for them because it's just providing them with a
Speaker 3: mortgage that they can't necessarily afford, or would they not
Speaker 3: be given that anyway?
Speaker 1: No, you can absolutely do it with a five percent.
Speaker 1: It depends on what bank you're going to as well.
Speaker 1: And to be honest, this is where the best port
Speaker 1: of call is going to be a broker, not a
Speaker 1: financial advisor. So a mortgage broker is going to go, yeah,
Speaker 1: all right, gee, if you've got five percent, these are
Speaker 1: the banks that'll lend you, these are the ones that won't. Like,
Speaker 1: mortgage broking can actually be relatively complex, especially when it
Speaker 1: comes to the semantics of one the loan, but then
Speaker 1: to the loan functionality, like do you want offset or redraw?
Speaker 1: How do you want at to work? Are you buying
Speaker 1: the property outright for yourself you're buying it in a trust?
Speaker 1: Like what does this actually look like for you? And
Speaker 1: then to add insult to injury, it's obviously far harder
Speaker 1: for people who are self employed or have just started
Speaker 1: their own businesses to get loans, and there are far
Speaker 1: less banks that are willing to lend you in that
Speaker 1: situation as well, So it can be really frustrating. And
Speaker 1: that's why I think getting involved with a mortgage broker,
Speaker 1: even if you're not ready to buy, I think is
Speaker 1: really smart. Because I've had a couple of clients, and
Speaker 1: I keep saying clients g because I have a mortgage
Speaker 1: broking company now and spoiler, we are having two very
Speaker 1: gorgeous women join the team as of the first of July,
Speaker 1: who I can't wait to introduce to you. So I
Speaker 1: have had clients come to me g and go, oh
Speaker 1: my god, Bee. I wish I'd spoken to a broker earlier.
Speaker 1: I have been busting my life away trying to save
Speaker 1: for another two years when I could have just paid
Speaker 1: l Ami and I worked it out. That would have
Speaker 1: been better for my situation. So it all depends on
Speaker 1: what you know circumstances you're in. But I genuinely believe
Speaker 1: in having a chat with a broker earlier and establishing
Speaker 1: that relationship up front. Like we've spoken about it before
Speaker 1: on the podcast, but I think when was the last
Speaker 1: time we spoke about the Hour of power? George King
Speaker 1: would have been it's been a while, but that still exists.
Speaker 1: You're breaking it back. No, it's still been okay, well
Speaker 1: when anyway, I just stopped talking about it. But the
Speaker 1: Hour of power essentially is this hour where you get
Speaker 1: a dedicated hour with a mortgage broker to sit down,
Speaker 1: do your serviceability, do a savings plan, organize your budget,
Speaker 1: organize your cash flow to make sure that you're in
Speaker 1: the best possible position to purchase a house without feeling
Speaker 1: like you're overwhelmed or just trying to get that fifteen
Speaker 1: minute free conversation with a broker that'll actually sit you
Speaker 1: down and be like, right, this is exactly the plan
Speaker 1: you need to follow to get into your first home.
Speaker 1: This is what we can do, and this is how
Speaker 1: we can do it. But the hour of Power is
Speaker 1: basically like the spoon fed version of getting into your
Speaker 1: first property with a broker on your team. But you
Speaker 1: do pay for that session, and I think that is
Speaker 1: absolutely worth its weight in gold. Like everyone who's done
Speaker 1: it has always said like, I am shocked that this
Speaker 1: is so good. But back to your question before, when
Speaker 1: you're saying can you get in with five percent, Yes,
Speaker 1: you'll just pay more el am I so on that
Speaker 1: five hundred thousand dollar property, instead of paying that twelve
Speaker 1: thousand dollars in l AMI, you'll now pay sixteen. That's
Speaker 1: anous So it makes sense, right, not too shabby, Not
Speaker 1: too shabby, according to g Okay.
Speaker 3: Good rundown of al Ami there V. Let's move on though,
Speaker 3: and chat about guaranteurs.
Speaker 1: The privilege is showing from the worst exactly right.
Speaker 3: It is a bit of a should not be one.
Speaker 3: What are your thoughts on guaranteurs and also can you
Speaker 3: explain them for anyone who's not across them.
Speaker 1: Okay, so first thing, first, we have an entire episode.
Speaker 1: This is just like a property playbook pitch right telling
Speaker 1: you how good the property playbook podcast is. But there's
Speaker 1: an entire episode on guarrant tour loans and how they work.
Speaker 1: But summary is guarantor loan works as a way to
Speaker 1: get you into the property market sooner, and you might
Speaker 1: need a small light and in some cases no deposit
Speaker 1: at all if you have a guaranteur that has enough
Speaker 1: equity in their property. A guaranteur usually a family member
Speaker 1: here in Australia. It usually has to be like a
Speaker 1: mum or a dad. It can't be a sibling or
Speaker 1: an aunt or an uncle or even a friend who
Speaker 1: is really kind that can't work. It has to be
Speaker 1: a family member and they offer up the equity in
Speaker 1: their own home as additional security for your loan. So
Speaker 1: it might be you know, one hundred percent security if
Speaker 1: you know they are boomers and brought their house for
Speaker 1: the twenty two thousand dollars in nineteen sixty eight. Now
Speaker 1: it's worth three million dollars. But a guaranteur is essentially
Speaker 1: going to guarantee that you'll pay the money back, because
Speaker 1: as much as they're offering up their equity, they're also
Speaker 1: putting on the table that if Georgia King doesn't pay
Speaker 1: off her loan, they'll take the brunt of that and
Speaker 1: take over the repayments before they have to recover it
Speaker 1: from somewhere else. So it is a lot of responsibility
Speaker 1: and you do need to think about it. A guarante
Speaker 1: loan is a privilege that most people don't actually have,
Speaker 1: but if you're in the lucky position of having it,
Speaker 1: please don't feel guilt. Like this community is not about going,
Speaker 1: oh my gosh, I can't believe they have it's so easy,
Speaker 1: because you never know somebody's circumstances and just because they
Speaker 1: had the property thing down pat does not mean their
Speaker 1: entire life is sorted on the flip side. And this
Speaker 1: community is all about lifting everybody up. So like, I
Speaker 1: want to celebrate if you've got a guarant tour loan,
Speaker 1: even if it's not something that's completely accessible to me.
Speaker 1: I think it's important to understand it. But I do
Speaker 1: feel like there has been some very unnecessary commentary recently
Speaker 1: about people calling other people who have guarant tour loans
Speaker 1: entitled or it was easy for them, because just because
Speaker 1: the deposit part we're skipped does not mean that paying
Speaker 1: off a mortgage for anyone is easy. So to summarize
Speaker 1: all of that, a guaranteur can be a very good
Speaker 1: way to get into the market. Again, it means that
Speaker 1: you do have to have a parent in your life
Speaker 1: that is financially secure enough to be able to offer
Speaker 1: that up. It does mean that they can't sell that
Speaker 1: property while being a guaranteur. But the cool thing that
Speaker 1: I think a lot of people don't realize about guarant
Speaker 1: tour loan is they're not the guaranteur on that loan forever.
Speaker 1: That the guaranteur on that loan until you pay enough
Speaker 1: off to meet the deposit, and then they can be
Speaker 1: released as a guaranteur. So I've seen a lot of people,
Speaker 1: especially my clients who get guaranteur loans, create like a
Speaker 1: little contract with their parents to say, all right, in
Speaker 1: two years, once I have paid down X amount, you
Speaker 1: can be released as a guaranteur. Because the parents are like, look,
Speaker 1: I just don't want this going on forever because I
Speaker 1: might need to retire, or I might want to access
Speaker 1: the equity for my own wealth creation. So I think
Speaker 1: that that's pretty cool. But then the other important thing
Speaker 1: to note is that the guaranteur has absolutely no requirement
Speaker 1: to make any repayments on that loan on your behalf.
Speaker 1: But if you're not able to make repayments and the
Speaker 1: bank's been chasing you, Lalenda will then turn to the
Speaker 1: guaranteur to make repayments, which kind of makes sense because
Speaker 1: they said Gking was good for it, and then maybe
Speaker 1: Gking was being a bit naughty, so they're going to
Speaker 1: go to the person who said she was good for it.
Speaker 1: But in this way, it is completely possible to get
Speaker 1: a home loan even when you have a small or
Speaker 1: maybe even no deposit.
Speaker 3: There are also lots of first home bias schemes floating
Speaker 3: around at the moment, aren't there.
Speaker 1: Be, oh my gosh, so many? And if you are
Speaker 1: a first home buyer and you have not been looking
Speaker 1: at these schemes, please do. I know a lot of
Speaker 1: people don't realize that they might be eligible, but you
Speaker 1: totally are. But essentially four major national government schemes and
Speaker 1: at the beginning of the financial year of twenty twenty
Speaker 1: two slash twenty twenty three, the government is planning on
Speaker 1: providing a total of fifty thousand places each year under
Speaker 1: the various schemes. The first one is the First Home Guarantee,
Speaker 1: which used to be called the First Home Loan Deposit Scheme,
Speaker 1: and right now they have thirty five thousand places each
Speaker 1: in every single year available, and it allows first home
Speaker 1: buyers with deposits as low as five percent to qualify
Speaker 1: for a home loan without having to pay that pesky LMI.
Speaker 1: So if you have five percent deposit, you won't have
Speaker 1: to pay that what was it, sixteen thousand dollars in
Speaker 1: LMI if you're paying for a five hundred thousand dollar property.
Speaker 1: So essentially the government will act as the mortgage insurer.
Speaker 1: For example, if a borrower provides a deposit worth five
Speaker 1: percent of the property value, the government's actually guaranteeing fifteen
Speaker 1: percent of that property value, making the risk to the
Speaker 1: lender exactly the same as if the borrower provided a
Speaker 1: twenty percent deposit. It's kind of good, very neat. The
Speaker 1: next is the Family Home Guarantee, which is a little
Speaker 1: bit more niche. There are only five thousand additional places
Speaker 1: a year under the Family Home Guarantee from the first
Speaker 1: of July twenty twenty two to the thirtieth of June
Speaker 1: twenty twenty five, so it hasn't even started yet. It's
Speaker 1: coming up in July. This is an initiative that exists
Speaker 1: to help eligible single parents with dependents purchase a family
Speaker 1: home sooner, which we love. And under this scheme, single
Speaker 1: parents can buy home with only two percent deposit without
Speaker 1: having to pay elamite. How good's that?
Speaker 3: That's pretty good.
Speaker 1: There's obviously so many more semantics to these that you
Speaker 1: need to consider and obviously can't purchase over a certain
Speaker 1: amount and rah rah. But like, if you're a single parent,
Speaker 1: saving up twenty percent is a ridiculous thing to think
Speaker 1: you could do in your own lifetime. Whereas you might
Speaker 1: actually have the cash flow to afford a mortgage, you
Speaker 1: actually just don't have heaps of free cash flow to
Speaker 1: save up enough for a deposit, and that could be
Speaker 1: usually the big hurdle that you're looking So I don't know,
Speaker 1: I really like that one. The next one is the
Speaker 1: Regional Home Guarantee. Double the places, so ten thousand places
Speaker 1: under the new Regional Home Guarantee from the first of
Speaker 1: October this year to the thirtieth of June twenty twenty three,
Speaker 1: So this scheme is going to be open to first
Speaker 1: home buyers and anyone who has not owned property within
Speaker 1: the last five years, which is an interesting I guess
Speaker 1: addition to that guarantee, and the legislation for that is
Speaker 1: currently still pending, so we're not sure if we'll get
Speaker 1: that one, but we will know very soon and is
Speaker 1: very likely to pass, otherwise I wouldn't have bothered to
Speaker 1: mention it. Gking on the pod brilliant. And then the
Speaker 1: next is the first Home super Saviors scheme, which, as
Speaker 1: you guys know, I think is a pretty good money win.
Speaker 1: The first time Super Savior scheme, if you haven't heard
Speaker 1: about it before, allows first home buyers to save their
Speaker 1: home deposit for their first home inside their super account,
Speaker 1: which means that you get to take advantage of concessional
Speaker 1: tax rates. Right, So, as we know, tax rates inside
Speaker 1: superannuation of fifteen percent, but most of us will probably
Speaker 1: be paying thirty two and a half cents on the
Speaker 1: dollar for tax, and that means that you get a
Speaker 1: pretty good rebate. So under this scheme, the government has
Speaker 1: increased the total amount of savings borrowers can release from
Speaker 1: Super from thirty thousand dollars which was over two years,
Speaker 1: to fifty thousand dollars over three years, which I think
Speaker 1: is far more. I don't know. That just makes a
Speaker 1: lot more sense to me, G. Because who in their
Speaker 1: right mind in Melbourne or Sydney only has thirty thousand
Speaker 1: dollars for a home deposit.
Speaker 3: You'd be buying a tent in the woods.
Speaker 1: But my calculations are that if you're in the situation
Speaker 1: where you're making use of the thirty thousand dollars, not
Speaker 1: the fifty thousand dollars only because I have the thirty
Speaker 1: thousand dollar example in my head. If g you were
Speaker 1: on a seventy thousand dollar income and you were planning
Speaker 1: on saving you know, over three years for a home
Speaker 1: deposit and wanted to get to about you know, thirty
Speaker 1: thousand dollars, if you did that inside superannuation on a
Speaker 1: total of like thirty thousand dollars, by contributing fifteen thousand
Speaker 1: dollars each financial year after three years, you would have
Speaker 1: saved six two hundred and ten dollars more a standard
Speaker 1: saving account. If it was in your suit it was
Speaker 1: in your superhot instead of if it was in your
Speaker 1: savings account. So to me, that makes a lot of
Speaker 1: financial sense to consider it. If you're planning on buying
Speaker 1: your first home. There are obviously a few caveats, like
Speaker 1: you can't pull it out without proof that you are
Speaker 1: purchasing a property, and there's a higher marginal tax rate
Speaker 1: if you do pull it out, so you can't just
Speaker 1: like whip it back out without you know, giving them
Speaker 1: some money. But if you're planning on purchasing a property,
Speaker 1: and hypothetically, if it was coming up to the end
Speaker 1: of a financial year, you could dump money into superannuation
Speaker 1: if it was aligned to your values in the middle
Speaker 1: of June, and then the same in the middle of
Speaker 1: July and make both financial years and then buy a
Speaker 1: house within a few months. So technically, if it's pre
Speaker 1: June right now and you're listening to this podcast, you
Speaker 1: can actually make use of both of those fifteen thousand
Speaker 1: dollars amounts before the end of this actual calendar the year.
Speaker 1: Little hack, well hack, if you wanted to do it
Speaker 1: only from experience, my love.
Speaker 3: Very good. That's second last question for the day.
Speaker 1: All right, I'll allow it.
Speaker 3: Let's talk about the word on everyone's lips inflation.
Speaker 1: Oh that is not what I thought you were going
Speaker 1: to say, but yeah, let's talk inflation, my love.
Speaker 3: At the time of recording, inflation sits at three point
Speaker 3: five percent and the RBA doesn't expect it to fall
Speaker 3: back with it it's two to three percent range until
Speaker 3: the middle of next year. We've talked inflation of the
Speaker 3: show many times before. But for anyone who's new to
Speaker 3: the show or wasn't listening, can you please give us.
Speaker 1: A little recap who wasn't listening, You've nailed in Yeah, exactly,
Speaker 1: it's been literally three years. Gee, in literally three years.
Speaker 1: I'll get there one day. But inflation is essentially how
Speaker 1: much things increase in price, So the cost of the
Speaker 1: goods and services that you purchase on a daily basis
Speaker 1: g and how much they increase over time. And obviously
Speaker 1: the best example of this is the McDonald's twenty cent
Speaker 1: cone or George, you're younger than me, so you reckon
Speaker 1: it's the McDonald's fifty cent cone. But what are they now?
Speaker 1: Like a dollar something else? I remember when they were
Speaker 1: were they two dollars for a little while there?
Speaker 3: Hooracity don't like it.
Speaker 1: But essentially, it's how much goods and services increase over time,
Speaker 1: and you would have heard this like the amount of
Speaker 1: people saying, oh my gosh, well, in my day, I
Speaker 1: bought my first house for fourteen thousand dollars. Yeah, okay, Paul,
Speaker 1: sit down, it's now worth two million dollars. And I
Speaker 1: am not getting into the semantics of this argument just
Speaker 1: because you could afford it, but it's important to understand
Speaker 1: because the most well known measure of inflation that is
Speaker 1: not a McDonald's twenty cent cone is the consumer Price index,
Speaker 1: weighted average of the price of thousands of different goods
Speaker 1: and services that are commonly purchased by households, which are
Speaker 1: then grouped into literally eighty seven different categories like meals
Speaker 1: out and takeaway food, and women's clothes and domestic travel.
Speaker 1: And that's how we get to CPI. So I've probably
Speaker 1: said that in passing before, but essentially CPI is consumer
Speaker 1: price index, and then the two largest items in CPI
Speaker 1: are the cost of purchasing newly built dwelling and rent
Speaker 1: go figure, which collectively make up about fifteen percent of
Speaker 1: the index. So essentially that is what inflation is and
Speaker 1: how it is calculated and why it is calculated, and
Speaker 1: TLDR it is how much things increase each year in price.
Speaker 3: And how does that impact the home buyer's market.
Speaker 1: It means houses are going to increase each year in
Speaker 1: line with how much things are increasing in price. In general,
Speaker 1: things are more expensive. Things just get more expensive, and
Speaker 1: we should have seen this coming because inflation has been
Speaker 1: happening right under our noses for our entire lifetimes.
Speaker 3: Can you give us just a quick little like inspo
Speaker 3: for anyone that's not in the home market yet but
Speaker 3: wants to be one day, but is still just feeling hopeless.
Speaker 1: Honestly, I think it's one of those things that is
Speaker 1: still being worked out. I completely understand how disheartening it
Speaker 1: is when we talk about property and it feels entirely inaccessible,
Speaker 1: But I think it's also about embracing how much positivity
Speaker 1: and how much good is coming out of twenty twenty
Speaker 1: two as well. Right, so, you might not be able
Speaker 1: to afford a home, but we now have the ability
Speaker 1: to travel the entire world, while my grandmother she never
Speaker 1: got that opportunity, you know, Like, I feel like we
Speaker 1: are so connected and technology has advanced, and there are
Speaker 1: so many different things in this world that are gorgeous
Speaker 1: and lovely, and we should be embracing. I think that
Speaker 1: too many times we weigh our self worth on whether
Speaker 1: we can afford a property or not, and that's a
Speaker 1: really ridiculous measure of how good we are in this world.
Speaker 1: So from my perspective, property means absolutely nothing. It's actually
Speaker 1: about your wealth creation journey and what you're doing to
Speaker 1: save and invest and create a life for future you.
Speaker 1: And if that involves property, fantastic. If it doesn't, whatever,
Speaker 1: But it also can feel really terrible. G If you
Speaker 1: just can't get into the market, EG me all right,
Speaker 1: but talk to a good broker. I think that's it. Okay,
Speaker 1: go to our website, introduce the self to Kate or Nicky.
Speaker 1: Both of them are absolutely brilliant, and we'll put you
Speaker 1: in the best possible position perfection.
Speaker 3: All right, let's go through the disclaimer.
Speaker 1: Who am I, What do I do?
Speaker 3: G King and go the advice chair on. She's on
Speaker 3: the Money is general in nature and does not consider
Speaker 3: your individual circumstances. She's on the Money exists purely for
Speaker 3: educational purposes and should not be relied upon to make
Speaker 3: an investment or financial decision. And we promise Victoria Divide
Speaker 3: is an authorized representative of in Focused Securities Australia Proprietary
Speaker 3: Limited ABN four seven zero nine seven seven nine seven
Speaker 3: zero four nine AFSL two three six five two three.
Speaker 3: We will see you on Friday, friends,