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Speaker 1: She's on the Money. She's on the Money.

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Speaker 2: Hello, and welcome to She's on the Money, the podcast

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Speaker 2: for millennials who want financial freedom. Over the last twelve months,

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Speaker 2: housing prices in Australia have increased by twenty two percent.

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Speaker 2: While this is incredible news for the homeowners, it's more

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Speaker 2: than a little deflating for aspiring first home buyers who

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Speaker 2: are yet to have cracked the market. Like merk Good's self.

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Speaker 2: But what if there was a way that we could

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Speaker 2: get into the property market without needing a deposit from

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Speaker 2: the outset by entering into a rent to buy scheme?

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Speaker 2: My name is Georgia King, and joining me to explain

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Speaker 2: exactly what renting to buy is and whether it's our

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Speaker 2: ticket to homeowner or if it's a trap best avoided

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Speaker 2: is of course Victoria divine.

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Speaker 3: They firstly, what's up, g how are you? I'm so good,

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Speaker 3: my good friend.

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Speaker 2: It's episode two hundred and one today.

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Speaker 3: Oh my gosh, I'm so excited. Monday it was Money

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Speaker 3: Diaries and that was our two hundredth episode. And I

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Speaker 3: really wish in the moment I had like four seen

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Speaker 3: that that was gonna yeah, Like I just didn't even

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Speaker 3: mention it in the episode, which is arguably really disappointing,

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Speaker 3: but Happy two hundred and one Georgia.

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Speaker 2: King, Happy two hundred and one VD. Okay, let's get

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Speaker 2: straight into it. What is renting to buy? Exactly? V

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Speaker 2: because I have not heard of this concept before.

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Speaker 3: So a rent to buy scheme is like a lease

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Speaker 3: agreement that allows you to pay rent and leave in

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Speaker 3: the home that you will eventually want to buy for

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Speaker 3: a fixed price and time period agreed upon by both

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Speaker 3: you and the seller of the property at the time

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Speaker 3: of signing the contract. So in addition to paying rent G,

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Speaker 3: you'll also be paying the option to buy fees for

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Speaker 3: the duration of the agreement and to the amount that

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Speaker 3: was agreed upon by both parties. When the leasing period

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Speaker 3: that is stipulated in your contract ends, which is usually

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Speaker 3: between three and five years, the homes then yours and

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Speaker 3: the mortgage is transferred into your name, which sounds like

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Speaker 3: a dream if you say it that way, it does

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Speaker 3: so fin I know, it's just like that's genius. But

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Speaker 3: what this means is that people who can't get into

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Speaker 3: the housing market in the traditional ways by saving for

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Speaker 3: a deposit and then paying for their own mortgage have

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Speaker 3: a different way of entering the market, and this could

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Speaker 3: be good and it also could be bad. And they

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Speaker 3: are theoretically locking in a set price with the homeowner

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Speaker 3: at that period of time, like three or five years

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Speaker 3: in the past, compared to when they'll purchase the property,

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Speaker 3: which given the current growth, is not a bad thing

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Speaker 3: to have done, right, But essentially it means that they

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Speaker 3: can then save for a deposit over that three to

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Speaker 3: five year period and put themselves in a better position

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Speaker 3: to afford a mortgage. Often buyers do still have to

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Speaker 3: pay a non refundable deposit to get into this, so

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Speaker 3: it's not all completely cash free and you don't just

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Speaker 3: turn your lease into an own situation. But essentially you

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Speaker 3: need to make sure you know the semantics of that

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Speaker 3: relationship before we actually get into it, because rent to

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Speaker 3: buy can sound really attractive, because, let's be honest, as

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Speaker 3: you said it before, the markets in Australia at the

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Speaker 3: moment are technically cooked and it makes us all feel

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Speaker 3: a little bit deflated when it comes to things like

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Speaker 3: talking about when we can get into the property market

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Speaker 3: or what it means for us when you're saving and

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Speaker 3: maybe you're able to save eleven percent of your income

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Speaker 3: each and every single year to then hear that the

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Speaker 3: increase in property prices has gone up twenty two percent.

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Speaker 3: That's literally double what you're able to save. So like

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Speaker 3: that means that you're not going to be able to

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Speaker 3: catch up and that sucks.

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Speaker 2: G Yeah, well it does suck, And I definitely understand

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Speaker 2: why people are turning to these kind of alternative ways

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Speaker 2: of getting into the property market. But what are the

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Speaker 2: other draw cards of this style of home ownership be so.

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Speaker 3: Obviously the main draw cards are that it makes it

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Speaker 3: a lot more accessible and we aren't required to save

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Speaker 3: for a deposit straight away, so it gives you a

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Speaker 3: bit more time to lock in finance with a lender

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Speaker 3: and get that organized. In saying that G three slash

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Speaker 3: five years, depending on how long you're entering into this,

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Speaker 3: it's a long time. Anything could change, Like you might

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Speaker 3: enter into this agreement and have a partner and then

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Speaker 3: break up with your partner. You might enter into this

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Speaker 3: agreement and then two years down the track to side

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Speaker 3: to make a complete career change and go back to

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Speaker 3: UNI and change your income significantly, meaning you might not

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Speaker 3: actually get finance with a lender. So it can be

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Speaker 3: a little bit constraining and we need to be really

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Speaker 3: aware of that. And as I was saying before, there's

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Speaker 3: obviously like that rent phase, but then there's the buyer phase.

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Speaker 3: So there's two phases in this process or this program

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Speaker 3: or this scheme as we're calling it, and it's really

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Speaker 3: important to understand what the semantics of each phase mean

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Speaker 3: and how it can actually impact you because during that

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Speaker 3: rent phase, you don't actually have any legal right to

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Speaker 3: the title of that property. Even missing like rent for

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Speaker 3: one week can result in having the contract completely terminated

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Speaker 3: and you'll lose all the money that you've spent thus far.

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Speaker 3: It's a contract at the end of the day, and

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Speaker 3: you've got to know what you are agreeing to before

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Speaker 3: entering into it. But back to options, Yeah, the next

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Speaker 3: major benefit is that it might be a good deal

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Speaker 3: for the buyer. I mean, as I alluded to before,

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Speaker 3: roberty over the last year has increased significantly, which means

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Speaker 3: that you could be locking in a lower amount than

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Speaker 3: the buyer might get if they sold in five years,

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Speaker 3: which is a bit of a money win. Because also

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Speaker 3: if we look at property in general as a financial advisor,

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Speaker 3: and I put that hat back on, if you're going

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Speaker 3: to make an investment, you would want that investment, whether

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Speaker 3: it is property, bonds, shares, whatever it is, to double

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Speaker 3: in value every ten years. You're halfway there with five years,

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Speaker 3: so that's pretty good. But then again, some people think

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Speaker 3: of rent money as dead money, which, as you know, Gking,

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Speaker 3: we don't agree with that. I do not agree with that.

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Speaker 3: We do not stand that. We also don't believe that

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Speaker 3: you need to buy property to be financially successful. Just

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Speaker 3: putting that hat on for a hot second. We did

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Speaker 3: an entire episode on renting for life, and that's actually

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Speaker 3: a really attractive option if property isn't something that you want.

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Speaker 3: But as you guys know, property is a very popular

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Speaker 3: topic in our community, so it makes sense that we're

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Speaker 3: doing another episode on it because we give the people

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Speaker 3: what they want. Georgia King, we do, we do. We're

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Speaker 3: just so generous, honestly, but some people think of it

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Speaker 3: as dead money. Going back to my point, but by

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Speaker 3: renting to buy, some people can actually justify renting a

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Speaker 3: little more because it can lead them to their main

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Speaker 3: goal of attaining home ownership, and knowing that part of

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Speaker 3: their rent is actually being turned into equity is pretty sexy.

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Speaker 2: Yeah, when I was having a little peruse on the

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Speaker 2: Google before the show. I know just that a lot

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Speaker 2: of the companies that specialize in this area really talk

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Speaker 2: about rent money being dead money. So they're like, instead

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Speaker 2: of you know, wasting your rent, turn it into home

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Speaker 2: own a shit. Like that's a big, a big selling

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Speaker 2: point that they really lean on. But how true is it? Not? Sure?

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Speaker 3: Look, it's not I really want to put the term

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Speaker 3: rent money is dead money straight in the bin because

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Speaker 3: they just don't agree with it. Like, you're paying for

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Speaker 3: a lifestyle, You're paying for a roof over your head.

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Speaker 3: It is not a negotiable cost. Like, I feel like

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Speaker 3: it's an incredibly entitled thing to say rent money is

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Speaker 3: dead money. It's like, okay, so should I just live

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Speaker 3: on the streets. Yeah, Like, not everybody has the privilege

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Speaker 3: of staying at home and saving for a deposit. Not

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Speaker 3: everybody even has the privilege of having a safe home

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Speaker 3: to be and they need to pay rent like we

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Speaker 3: all do. So I just feel like it's a really

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Speaker 3: outdated term to say rent money is dead money, because

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Speaker 3: it's just Bavid's letting your entitlement show and we don't

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Speaker 3: want that. In twenty twenty one.

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Speaker 2: Yeah, I could not agree more. They so, what are

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Speaker 2: the benefits for people selling their homes in this way?

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Speaker 3: So we are having this conversation, I just want to stipulate,

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Speaker 3: so I'm going to get my negative hat on in

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Speaker 3: a hot second. We're just presenting the benefits and the negatives.

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Speaker 3: But I mean, at the same time, I think it's

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Speaker 3: really important for you guys to understand that I would

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Speaker 3: further on the side of caution when it comes to

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Speaker 3: rent to buy, and I'll explain why because it's actually

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Speaker 3: illegal in a few states, but don't tell anybody yet.

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Speaker 3: But when it comes to the benefits for people selling

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Speaker 3: their home, they have a guaranteed buyer for their home.

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Speaker 3: How good is that, Like, you know that that home

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Speaker 3: is going to sell. I mean, in this market it's

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Speaker 3: probably not that much of a draw card anymore, but

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Speaker 3: historically it would have been because it used to take

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Speaker 3: months or even years to sell particular properties. And they

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Speaker 3: will arguably receive more money than they would have by

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Speaker 3: just renting their home out in that period of time

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Speaker 3: the old fashioned way, as they're going to receive not

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Speaker 3: only inflated rental prices, but also that option to buy

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Speaker 3: a fee, which is a se in lieu of a deposit.

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Speaker 3: And then also when it comes to risk, obviously it's

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Speaker 3: quite risky for the buyer, but for the seller. If

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Speaker 3: the buyer fails to secure a finance at the end

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Speaker 3: of the agreement, they actually get to keep their home

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Speaker 3: and all of the money that they made along the way.

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Speaker 3: So there's not actually all that much risk on the

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Speaker 3: person who's selling the property because if it doesn't work out, yes,

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Speaker 3: maybe you don't have a buyer for your home, but

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Speaker 3: you get to keep your home, you get to keep

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Speaker 3: the money that they have paid you over that three

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Speaker 3: or five year term. You're not just keeping the rent

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Speaker 3: money because that would have been arguably yours regardless, But

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Speaker 3: that option to buy fee completely sacrificed from the person

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Speaker 3: who's buying it, and that's the risk you go into.

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Speaker 3: And more often than not, that option to buy fee

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Speaker 3: is usually somewhat equivalent to a deposit, so it's not

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Speaker 3: just a fifty dollar Fiji. It's almost equivalent to a

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Speaker 3: house deposit that you could potentially be losing as the

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Speaker 3: person buying, but a money win. If you're the person

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Speaker 3: selling the home and it all falls.

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Speaker 2: Through, oh you'd feel a little bit like a little

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Speaker 2: bit of an asshole though, wouldn't you.

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Speaker 3: Would, but absolutely would. But I don't think that that's

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Speaker 3: the problem when we're talking about risk versus return, Like

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Speaker 3: when it comes to investing or selling a property, it's

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Speaker 3: not I mean, we don't want to be ushold, but

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Speaker 3: we do absolutely want to make sure that we're putting

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Speaker 3: ourselves in the best possible position to get the best

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Speaker 3: possible financial outcome, right, Like we're not selling our property

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Speaker 3: so that we can be charitable. Like arguably, if you're

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Speaker 3: selling a property, especially a property that someone is renting

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Speaker 3: and then going to purchase from you, it's probably an

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Speaker 3: investment strategy from your point of view, So it's not

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Speaker 3: as though that's your only home, like you probably have

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Speaker 3: a couple anyway. I won't go on about that, but

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Speaker 3: I just think that it's fraught with risk.

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Speaker 2: George f Perhaps this is a silly question, but are

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Speaker 2: these sellers just people like you and me or are

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Speaker 2: they more like developers that have companies that are specializing

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Speaker 2: in this or is it a combo poor.

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Speaker 3: Kin or Los dos Achish King? All right, it can

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Speaker 3: be both. So finding homes this way is actually relatively uncommon.

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Speaker 3: You know, you don't go on domain or real estate

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Speaker 3: dot com and then see a home and it's a

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Speaker 3: rent to buy version, Like, you do have to be

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Speaker 3: seeking this out, and it's definitely more rare in regional

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Speaker 3: and remote areas, so it's not that common if you

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Speaker 3: were like living in Wodonga, but it might be really

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Speaker 3: common in Melbourne, CBD, where they've built a really big

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Speaker 3: apartment complex and the developers plan is entirely rent to own,

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Speaker 3: which is not uncommon. So I do feel like it's

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Speaker 3: more common in the city than it is in the country.

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Speaker 2: But there are.

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Speaker 3: Also businesses that specialize in this type of service, Like

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Speaker 3: literally businesses will build an entire apartment complex with the

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Speaker 3: intention of having everybody in that complex rent to buy

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Speaker 3: because they might feel like they'll make more money that way,

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Speaker 3: or that's just the investment structure that they're decided to

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Speaker 3: take on. In saying that, there are legitimate versions, and

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Speaker 3: there are also scammers who do the same thing, and

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Speaker 3: you're like, oh my gosh, that's so exciting. That sounds

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Speaker 3: like a dream and it doesn't work out that way,

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Speaker 3: So please, please, please do your due diligence and listen

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Speaker 3: to the property playbook, so you know what due diligence

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Speaker 3: actually is true?

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Speaker 2: True, good little throw there. So say I'm living in

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Speaker 2: Carlton North and I love my apartment and I'm like,

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Speaker 2: rent money's dead money, baby. Could I have a chat

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Speaker 2: to my landlord and be like, hello, Max, what her

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Speaker 2: thoughts on renting police specific?

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Speaker 3: Yes? Max, Max? Max can be approached to do that. Okay, Yep,

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Speaker 3: you can absolutely approach Max and have that conversation if

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Speaker 3: you wanted to in saying that it's not that common

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Speaker 3: for pre existing homes to do that. Because if I

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Speaker 3: wanted to sell my property. G So pretend I was

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Speaker 3: Max and I said, oh, I'm ready to sell. Am

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Speaker 3: I going to want to pick Georgia who's just come

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Speaker 3: to me and said, Hey, I'd love to do a

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Speaker 3: rent buy, don't have any money, don't know if I'm

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Speaker 3: going to get funding after this three or five years,

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Speaker 3: going to pay you an increased amount right now? Or

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Speaker 3: you might go, well, my name's Max, and I've read

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Speaker 3: news dot com dot you can see that property prices

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Speaker 3: have increased twenty two percent. Do I want to make

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Speaker 3: bank right now and actually sell and get the deposit

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Speaker 3: and the full amount for that property now and invest

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Speaker 3: in something else, or do I want to wait three

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Speaker 3: or five years for Georgia to get it together? Like,

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Speaker 3: I don't mean that in a negative way. We just

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Speaker 3: have to put our different hats on as to why

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Speaker 3: that might be a good decision. And they might go, oh, yeah,

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Speaker 3: like that sounds nice and they just enter into that

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Speaker 3: because it's a simple agreement from their end in terms

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Speaker 3: of yep, you have that fee, you pay that, continue

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Speaker 3: paying rent, and then after three or five years the

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Speaker 3: property will be purchased by you. Could be a really

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Speaker 3: good strategy for people who want to retire and will

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Speaker 3: need to liquidate assets to retire. Also, I've seen this

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Speaker 3: strategy work for families who own property and their chill

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Speaker 3: and purchasing that property and want them to purchase and

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Speaker 3: have the best possible way to do it so they

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Speaker 3: live in the property and set up this agreement because

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Speaker 3: it all needs to be you know, above board and legal.

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Speaker 3: But yeah, from my perspective, it's not that common when

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Speaker 3: it comes to pre existing dwellings, right.

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Speaker 2: Okay, but you could still have the chat with Max.

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Speaker 3: You could absolutely have the chat with Max. Let's go

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Speaker 3: to a break though, because I use the word dwellings

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Speaker 3: and that's kind.

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Speaker 2: Of weird dwellings. Yeah, a good place to leave it.

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Speaker 2: But on the other side, guys, we will be talking

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Speaker 2: about the other side of renting to buy. That is,

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Speaker 2: of course what the negatives are, and we'll also be

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Speaker 2: covering some alternatives to renting to buy. So don't go anywhere,

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Speaker 2: okav So for me, the word scheme it sets of

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Speaker 2: alarm bells. What are the downfalls of renting to buy?

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Speaker 3: Look, let's be honest, there are a lot more than

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Speaker 3: there are benefits. And maybe we should have said that

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Speaker 3: in the first half of this podcast, because Georgia, there

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Speaker 3: are probably some people listening who are like.

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Speaker 2: Sounds like a good idea, Oh my.

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Speaker 3: Gosh, this is genius. Sounds great, and I'm like, don't

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Speaker 3: do it, so avologies if that was you. But we

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Speaker 3: exist to help. Doesn't mean we go in the like

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Speaker 3: a straight line to do that. But essentially, yes, there

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Speaker 3: are a number of downfalls. The biggest one is that

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Speaker 3: you don't actually own the home in any way, shape

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Speaker 3: or form until the final payment is put down. So

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Speaker 3: if you miss a payment, the contract could be completely

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Speaker 3: terminated and you're left with nothing. And I covered that earlier,

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Speaker 3: Like that's almost a half deposits worth of money. Also,

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Speaker 3: if you reach the end of the rental period and

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Speaker 3: you aren't able to lock in finance for whatever reason,

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Speaker 3: then you could lose both the home you were hoping

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Speaker 3: to purchase and hoping it would be yours and the

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Speaker 3: inflated rental and all of the option to buy in

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Speaker 3: our payments that you made along the way for nothing,

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Speaker 3: which kind of sounds really scary. As I mentioned, they're

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Speaker 3: paying rent in these homes is usually more than you

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Speaker 3: would pay for a similar home in a similar location. Again,

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Speaker 3: rent money is not dead money. Say it after me.

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Speaker 3: Because the other thing that they don't usually publicized is

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Speaker 3: that if the seller of the property is using that

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Speaker 3: property as security for their own debts, it could compromise

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Speaker 3: you if their home was seized for whatever reason.

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Speaker 2: I don't like that. Yeah, yeah, so.

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Speaker 3: Think you know Max, No idea who you are, Max,

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Speaker 3: but oddly specific, I'm led to believe that maybe that

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Speaker 3: is your landlord's name. If Max had like debt up

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Speaker 3: to his eyeballs and was doing this thing with you,

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Speaker 3: and then he had to declare bankruptcy and lose his home,

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Speaker 3: your contract doesn't matter.

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Speaker 2: I don't like that at all.

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Speaker 3: No, that makes me feel really icky, Like that's really uncomfortable.

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Speaker 3: Arguably you shouldn't be able to do that. But if

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Speaker 3: you're in that situation, I would be asking about the

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Speaker 3: seller's debts. No, you are not overstepping the mark. You

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Speaker 3: deserve to know because that is a ramification that could

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Speaker 3: impact you significantly. You also have to apply for the

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Speaker 3: home loan when it comes to buy, so like, this

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Speaker 3: isn't just some dreamy process where it's like, oh my gosh,

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Speaker 3: you'll just end up owning it. Like, you have to

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Speaker 3: apply for a mortgage. And if you're in a situation

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Speaker 3: where you're in come isn't going to be sufficient to

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Speaker 3: service a mortgage or for some reason, you know, maybe

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Speaker 3: you started your own business. More often than not, g

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Speaker 3: banks want at least two years worth of financials if

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Speaker 3: you're self employed. So if you, you know, in a

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Speaker 3: couple of years, start your own business and then you're,

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Speaker 3: you know, nine or twelve months into that business, not

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Speaker 3: many banks are going to want to lend to you

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Speaker 3: because you're too risky. And that makes sense, but like

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Speaker 3: it's not something you should have to think about during

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Speaker 3: the home buying process. Yeah, if you're like in this contract.

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Speaker 3: You're like, Yep, that's all done, dusted, set up, will

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Speaker 3: own this in this period of time? Like no, no, no,

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Speaker 3: you still have to get a mortgage and you still

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Speaker 3: have to be approved for it. Nothing is guaranteed.

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Speaker 2: What about fee? You know?

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Speaker 3: How?

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Speaker 2: So you're paying the rent, which is usually inflated, it's

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Speaker 2: more expensive than it usually would be. Then you're paying

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Speaker 2: the option to buy fee on top of that. What

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Speaker 2: does that option to buy fee get you? Is that

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Speaker 2: contributing to the deposit or is that just the fear

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Speaker 2: of being a part of this type of a scheme, Like,

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Speaker 2: how does that work?

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Speaker 3: It's the fee that the seller would come up with,

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Speaker 3: and essentially that's in lieu of a deposit. So your

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Speaker 3: inflated rent and the fact that you're paying this fee

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Speaker 3: is going to add up, hopefully to somewhat close to

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Speaker 3: a deposit for them. So that you actually can say

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Speaker 3: to the lender, because you're never going to get one

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Speaker 3: hundred percent mortgages with alta Garran tour, you can say

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Speaker 3: to the lender, I've actually already quote saved this amount

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Speaker 3: for the deposit. They already have it. I technically have

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Speaker 3: paid my ten or twenty percent or whatever it is

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Speaker 3: towards this property over the last three or five years,

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Speaker 3: and they'll go, great, no problems, will see that as

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Speaker 3: your deposit. Does that make sense?

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Speaker 2: Yeah, gotcha? Okay, all right.

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Speaker 3: But it's also worth noting, g that there was a

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Speaker 3: report that was completed in twenty sixteen by the very

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Speaker 3: fancy Sound and Consumer Action Law Center and they had

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Speaker 3: found not any successful cases of renting to buy and

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Speaker 3: reiterated that it is extremely financially risky and the legal

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Speaker 3: protection for buyers were quote grossly inadequate. That's scary. Is

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Speaker 3: that's just I don't know, red flag.

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Speaker 2: I wonder hopefully it's like improved in the last five years.

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Speaker 2: But that's a pretty damaging quote.

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Speaker 3: It's not just a damaging quote. It is a rearing

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Speaker 3: red flag from me, Like, gee, if you're in the

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Speaker 3: Sheese on the one community, it's crimson. It's a crimson

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Speaker 3: red flag.

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Speaker 2: So are you saying that you would generally caution against this,

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Speaker 2: You're not recommending it to any.

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Speaker 3: Of your cobsolutely, I'm not recommending it after doing a

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Speaker 3: whole heap of research and understanding it. As I said before,

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Speaker 3: I do have clients who have implemented this with their

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Speaker 3: children to make sure that their children actually save for

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Speaker 3: a deposit. And maybe they're not the most responsible people,

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Speaker 3: and I get that, and maybe that works in a family,

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Speaker 3: but I just can't as a financial advisor give you

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Speaker 3: the advice to say, hey, I advocate for this, because

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Speaker 3: I don't and I'm very risk averse and I just

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Speaker 3: feel like, if you are going to enter into one

401
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Speaker 3: of these schemes, I absolutely would be getting independent financial advice,

402
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Speaker 3: independent legal advice, and making sure you were doing your

403
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Speaker 3: due diligence to the nth degree before you even sign

404
00:20:15,960 --> 00:20:18,639
Speaker 3: a thing. But I think it's also worth remembering the

405
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Speaker 3: quote it was extremely financially risky and the legal protection

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Speaker 3: for buyers is grossly inadequate. Like that's an OPRAH.

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Speaker 2: It's pretty clear. Also worth remembering that, Like, you don't

408
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Speaker 2: need to get into the housing market tomorrow if that's

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Speaker 2: your goal. If your goal is to you know, buy

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Speaker 2: a home one day, you don't need to rush into it.

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Speaker 2: Take the time, say if you deposit over the next

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Speaker 2: ten years, like you know, property is always going to

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Speaker 2: be that.

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Speaker 3: This is a conversation Gee, I actually had in my

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Speaker 3: DMS this morning and someone was saying, like, oh, my gosh,

416
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Speaker 3: thank you so much for like your Renting Forever episode.

417
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Speaker 3: It really opened up my eyes to the fact that

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Speaker 3: I don't need a property to see myself as financially secure.

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Speaker 3: And I think that because so many of it go oh,

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Speaker 3: our parents did it, or the last generation did it,

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Speaker 3: or there's a lot of societal pressure going on. I

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Speaker 3: feel like it's become quote the norm to buy property,

423
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Speaker 3: when in reality, it's not actually the norm to buy property,

424
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Speaker 3: Like it's not actually that obtainable, especially for millennials who

425
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Speaker 3: have average wages, and the average wage in Australia is

426
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Speaker 3: between sixty and eighty five thousand dollars. Like combine that

427
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Speaker 3: you still have an income of combined if you have

428
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Speaker 3: a partner of less than two hundred thousand dollars, and

429
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Speaker 3: the idea that you would then need to service a

430
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Speaker 3: mortgage of arguably in Melbourne or Sydney, and obviously I'm

431
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Speaker 3: not speaking for the entire country here, but of about

432
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Speaker 3: a million dollars, it's completely unfathomable, Like it is so

433
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Speaker 3: much money, and you go, is there something better? Is

434
00:21:46,119 --> 00:21:48,760
Speaker 3: there something different? Like why are we putting this pressure

435
00:21:48,760 --> 00:21:52,200
Speaker 3: on ourselves? Is it because we genuinely want a home, Okay,

436
00:21:52,280 --> 00:21:54,960
Speaker 3: let's work towards that. But there's no oh my gosh,

437
00:21:55,040 --> 00:21:57,520
Speaker 3: you need to be buying a property before thirty Like

438
00:21:57,560 --> 00:22:00,800
Speaker 3: that's not a thing like a lot of home buyers

439
00:22:00,800 --> 00:22:03,520
Speaker 3: in Australia. And you know, we don't know this research

440
00:22:03,600 --> 00:22:06,359
Speaker 3: yet because a lot of millennials aren't yet in the

441
00:22:06,400 --> 00:22:09,160
Speaker 3: property market. And I would not be surprised g if

442
00:22:09,200 --> 00:22:12,119
Speaker 3: over the next few years research starts coming out saying

443
00:22:12,119 --> 00:22:14,159
Speaker 3: that the average age of a first home buyer is

444
00:22:14,200 --> 00:22:17,359
Speaker 3: closer to forty because that just seems more reasonable. And

445
00:22:17,400 --> 00:22:20,040
Speaker 3: as someone who is a financial advisor and I have

446
00:22:20,119 --> 00:22:23,440
Speaker 3: a mortgage broking business and I work really closely with brokers,

447
00:22:23,960 --> 00:22:26,520
Speaker 3: most of the people i'm talking to a thirty five

448
00:22:26,640 --> 00:22:30,000
Speaker 3: plus because that's how long it's taking to save for deposits.

449
00:22:30,359 --> 00:22:33,080
Speaker 3: And I see all this research flying around about, oh,

450
00:22:33,080 --> 00:22:34,800
Speaker 3: it takes three and to five years to save a

451
00:22:34,840 --> 00:22:39,560
Speaker 3: deposit for who, like who is actually, especially if you're

452
00:22:39,560 --> 00:22:42,639
Speaker 3: in a city person like we are, g who's saving

453
00:22:42,680 --> 00:22:46,000
Speaker 3: an entire home deposit in three to five years? Like,

454
00:22:46,040 --> 00:22:50,560
Speaker 3: if you have literally props to you, I'm so genuinely impressed.

455
00:22:50,840 --> 00:22:53,840
Speaker 3: But I'll almost bet my bottom dollar that you guys

456
00:22:53,880 --> 00:22:57,159
Speaker 3: are not buying inner city Melbourne homes like you're not

457
00:22:57,240 --> 00:22:59,919
Speaker 3: buying in Sydney. You're maybe a little bit more regional.

458
00:23:00,040 --> 00:23:02,280
Speaker 3: You might be in Tasmania or you might be in Queensland.

459
00:23:02,760 --> 00:23:06,480
Speaker 3: And that's not to downplay that achievement. That's an epic achievement.

460
00:23:06,760 --> 00:23:09,280
Speaker 3: But what we want to actually do is normalize the

461
00:23:09,280 --> 00:23:12,359
Speaker 3: fact that it's not that normal, especially in major cities,

462
00:23:12,560 --> 00:23:15,760
Speaker 3: to be able to afford property under the age of thirty. Anyway,

463
00:23:15,920 --> 00:23:17,520
Speaker 3: thank you for coming to my ted talk job.

464
00:23:19,040 --> 00:23:21,920
Speaker 2: Now. I think you're exactly right, and I think it's

465
00:23:21,960 --> 00:23:24,679
Speaker 2: probably a good time as well, just to kind of

466
00:23:24,880 --> 00:23:28,240
Speaker 2: mention that it's worth reflecting on what you do want

467
00:23:28,400 --> 00:23:30,639
Speaker 2: from your life and kind of questioning if you do

468
00:23:30,760 --> 00:23:34,440
Speaker 2: have your heart set on property, thinking about why is that,

469
00:23:34,640 --> 00:23:37,560
Speaker 2: Like is it just because Janine on Instagram just bought

470
00:23:37,600 --> 00:23:39,240
Speaker 2: a hot house down the road and you're like, oh,

471
00:23:39,280 --> 00:23:41,280
Speaker 2: that would look good on my grid? You know, think

472
00:23:41,320 --> 00:23:44,040
Speaker 2: about what makes you happy and the life that you

473
00:23:44,080 --> 00:23:46,840
Speaker 2: actually want instead of you know, looking around you put

474
00:23:46,840 --> 00:23:48,840
Speaker 2: your blinkers on and just yeah, have a little think,

475
00:23:49,000 --> 00:23:49,520
Speaker 2: have a little thing.

476
00:23:49,640 --> 00:23:51,560
Speaker 3: Stay in your own lane, because if you're not in

477
00:23:51,600 --> 00:23:53,680
Speaker 3: your own lane, the path is going to be really

478
00:23:53,680 --> 00:23:55,280
Speaker 3: crowded if you're trying to be on the same one

479
00:23:55,280 --> 00:23:57,520
Speaker 3: as everybody else exactly right, well, that could be an

480
00:23:57,560 --> 00:24:00,920
Speaker 3: inspirational quote if we cleaned it up. Do pop, let's

481
00:24:00,920 --> 00:24:04,000
Speaker 3: go pill us. Honestly, that is all we have time

482
00:24:04,040 --> 00:24:07,640
Speaker 3: for Georgia. But as always, just before we head off,

483
00:24:07,640 --> 00:24:11,240
Speaker 3: we'd like to acknowledge and pay respect to Australia's Aboriginal

484
00:24:11,280 --> 00:24:14,800
Speaker 3: and torrist Right islander peoples. They're the traditional custodians of

485
00:24:14,880 --> 00:24:18,560
Speaker 3: the lands, the waterways and the skies all across Australia.

486
00:24:18,960 --> 00:24:21,320
Speaker 3: We thank you for sharing the caring for the land

487
00:24:21,359 --> 00:24:23,960
Speaker 3: on which we are able to learn. We payer respects

488
00:24:23,960 --> 00:24:26,680
Speaker 3: to elders past and present, and we share our friendship

489
00:24:26,760 --> 00:24:27,880
Speaker 3: and our kindness.

490
00:24:27,960 --> 00:24:30,439
Speaker 2: And remember, guys that the advice shared on She's on

491
00:24:30,480 --> 00:24:33,120
Speaker 2: the Money is general in nature and does not consider

492
00:24:33,160 --> 00:24:36,879
Speaker 2: your individual circumstances. She's on the Money exists purely for

493
00:24:37,040 --> 00:24:39,920
Speaker 2: educational purposes and should not be relied upon to make

494
00:24:39,920 --> 00:24:43,760
Speaker 2: an investment or a financial decision. And we promise Victoria

495
00:24:43,800 --> 00:24:47,880
Speaker 2: Divine is an authorized representative of Australia Pacific Funds Management

496
00:24:48,240 --> 00:24:51,600
Speaker 2: Proprietary Limited ABN three four one three two four six,

497
00:24:51,760 --> 00:24:54,679
Speaker 2: three two five seven AFO sal three three nine one

498
00:24:54,800 --> 00:24:57,119
Speaker 2: five one Hey J, you sound like you've got that

499
00:24:57,160 --> 00:25:00,960
Speaker 2: pretty down pat you reckon. You still have to read it?

500
00:25:01,200 --> 00:25:06,840
Speaker 3: Okay, good because I'm changing it soon. Catch you guys,