Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
Speaker 1: we get started on She's on the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
Speaker 1: and the storytelling of you to make a difference for
Speaker 1: today and lasting impact for tomorrow.
Speaker 2: Let's get into it. She's on the Money, She's on
Speaker 2: the Money. Hello and welcome to Property on the Money,
Speaker 2: the ultimate first home buyer's guide from the number one
Speaker 2: finance creator in the country, me Victoria Devine, which I'm
Speaker 2: so excited about. Guys. This is a special little bonus
Speaker 2: edition of She's on the Money, where I thought I
Speaker 2: would share the very first chapter of my very new book,
Speaker 2: Property with She's on the Money with you. I have
Speaker 2: written Property with She's on the Money, just for you
Speaker 2: because I want to see you smash your property goals,
Speaker 2: and I've created this informative guide to help you whether
Speaker 2: you're getting your foot on the ladder for the very
Speaker 2: first time, or you're hunting for your dream home, or
Speaker 2: maybe you're planning for your third investment property. Even with
Speaker 2: all the challenges that are involved, guys, crazy interest rates,
Speaker 2: crazy high house prizes, I'm looking at you, but so
Speaker 2: many of us we're still planning on purchasing property. That's
Speaker 2: why the Property Playbook has been so popular over the
Speaker 2: last twelve months. Whether it's the security and the financial
Speaker 2: perks of owning your own home or the benefits of
Speaker 2: having an investment property. I guess the appeal and the
Speaker 2: rewards are a plenty, my friends, but buying property can
Speaker 2: also be one of the biggest decisions you are ever
Speaker 2: going to make, and we want to make it right right.
Speaker 2: So I have written Property with She's on the Money
Speaker 2: to equip you for the whole process, my friend, from
Speaker 2: establishing your property values and truly understanding why you want
Speaker 2: to buy property to saving for the all important deposit.
Speaker 2: We're going to talk all things mortgages, what to buy
Speaker 2: and when, how to make every single stage of this
Speaker 2: process as smooth as possible, right through to renovating and selling.
Speaker 2: I have packed this book with practical advice, hopefully innovative ideas,
Speaker 2: and real life stories from members of el She's on
Speaker 2: the Money community who have already achieved the goal of
Speaker 2: purchasing their first home. With this game changing guide, I
Speaker 2: hope that property is no longer confusing, overwhelming, or out
Speaker 2: of reach. It's going to be clear, inspiring, and totally
Speaker 2: within your power to achieve. So, guys, here is the
Speaker 2: first chapter of property with She's on the Money Hopefully
Speaker 2: get your Property Journey rolling. Chapter one. So you want
Speaker 2: to buy property, So you like the idea of owning property,
Speaker 2: or you did before you started looking at your finances
Speaker 2: and listening to the daily news reports about interest rate
Speaker 2: increases and the rising cost of living and how millennials
Speaker 2: will never be able to afford a home, and since
Speaker 2: the world is going to hell in a handbasket anyway,
Speaker 2: why bother. The truth is that, yes, all the rising
Speaker 2: rates and costs do creep in inch by painful inch,
Speaker 2: and at times of high stress, they can really start
Speaker 2: to buy it. So even if you had one's thought
Speaker 2: it possible to dream about owning your own home, now
Speaker 2: you might not really be so sure. But you don't
Speaker 2: need to give up on your property aspirations just because
Speaker 2: it seems too hard. The first step that I always
Speaker 2: suggest on your financial journey is to analyze your personal
Speaker 2: money story. The conscious and subconscious beliefs we carry around
Speaker 2: wealth which direct our attitudes and our behaviors towards money,
Speaker 2: in this case property. If you're interested in taking a
Speaker 2: deeper dive into your personal money story, you can find
Speaker 2: more in chapter one of my first book, She's on
Speaker 2: the Money. But if you're keen to find out how
Speaker 2: it plays out in terms of property, I suggest you
Speaker 2: stay right here. Very shortly, we'll be working through some
Speaker 2: activities to get you thinking about it in detail key terms.
Speaker 2: Before we get into it, I want to assure you
Speaker 2: that this book has been created with the idea of
Speaker 2: simplifying the property buying process, not making it harder. But
Speaker 2: I'm not going to lie. As part of the finance world,
Speaker 2: property is an acronym heavy landscape. Learning this language, as
Speaker 2: with any language French Mandarin beautician, may be confusing at first,
Speaker 2: but trust me, the more you hear a word and
Speaker 2: see it used, the more sense it will make over time.
Speaker 2: You may even find yourself throwing terms like LMI and
Speaker 2: P and I around with loose abandon chapter six. If
Speaker 2: you want to jump ahead as we go along, I
Speaker 2: will do my best to explain things, which include popping
Speaker 2: key terms near the top of every to give you
Speaker 2: a heads up, and then going into more detail on
Speaker 2: these as we progress. I'll also include a quick explainer
Speaker 2: in the moment. But if ever you find yourself being
Speaker 2: slammed with gobbledygook, there's also a handy glossary at the
Speaker 2: back of the book where all the terminology is listed.
Speaker 2: Key terms comparisonitis, comparing yourself with others, and finding yourself
Speaker 2: lacking or gloating, neither of which is healthy. Investor owner
Speaker 2: someone who owns property that they rent out for income,
Speaker 2: not to live in themselves. Emergency fund a savings account
Speaker 2: holding enough money to support you for three months housing,
Speaker 2: food bills if for any reason you can't work and
Speaker 2: orse something unexpected pops up. Financial freedom, having enough money
Speaker 2: to live securely so you can choose how you spend
Speaker 2: your time. Fomo fear of missing out. Gender pay gap
Speaker 2: the real difference between what men and women are paid. Typically,
Speaker 2: women are paid less for so many reasons, there's not
Speaker 2: enough room to cover it all here. Great Australian dream. Historically,
Speaker 2: the great Australian dream was to own a quarter acre
Speaker 2: block of land with a house on it in which
Speaker 2: to raise two point four children. More recently, it's come
Speaker 2: to mean owning your own home whatever that looks like.
Speaker 2: Mortgage another word for a home loan owner occupier, someone
Speaker 2: who lives in the property they own. Passive income stream
Speaker 2: money coming in from sources other than your own direct labor.
Speaker 2: This might include things like dividends, interests, subscriptions, royalties and
Speaker 2: rent SotM. She's on the money, my fabulous community of
Speaker 2: millennials striving to create financial freedom. You're why? The real
Speaker 2: reason often subconscious, sitting deep beneath all of the obvious
Speaker 2: superficial ones, as to why you think and behave the
Speaker 2: way you do. Your property money story. Okay, so are
Speaker 2: you ready to begin? I'm excited and I hope you
Speaker 2: are too. First things first, because you know I like
Speaker 2: to get a little deep, and it's important you do
Speaker 2: the same, at least as far as your relationship with
Speaker 2: money goes. This relationship is one of your life's most important.
Speaker 2: It affects your lifestyle and investment choices, including property ownership,
Speaker 2: and ultimately your future. So Understanding your attitudes and assumptions
Speaker 2: around money is essential. Some hate the idea of having
Speaker 2: all their wealth tied up in one concrete asset, while
Speaker 2: others love it. Some investors get excited when interest rates
Speaker 2: rise an opportunity to pick up bargains, while others faint
Speaker 2: at their mere mention, and others don't see property as
Speaker 2: particularly meaningful in either direction. Before I start getting too
Speaker 2: deep into theory, let's get you into the property mood
Speaker 2: with this fun activity. Cue your favorite music, beverage of
Speaker 2: choice and comfy. Set up and open up your PDF
Speaker 2: workbook BWAYO pen your property money story. Thinking about your
Speaker 2: property money story, circle the statement in your PDF that
Speaker 2: best fits your idea of being a property owner. A.
Speaker 2: I have no idea how I'm ever going to afford property,
Speaker 2: but I'd like to. I suppose I imagine that somehow
Speaker 2: in the future I'll manifest a better income, partner, or
Speaker 2: life to enable it. B. I've never considered that owning
Speaker 2: property is an option for me. SE I move around
Speaker 2: a lot, and the idea of being stuck in one place,
Speaker 2: let alone owning it is my worst nightmare. D. I've
Speaker 2: been dreaming about owning my own property since a young age,
Speaker 2: and I'm actively taking steps to making this dream come true.
Speaker 2: Australian attitudes to property. Whatever you just answered, it's true
Speaker 2: and valid, But I'd like to get you thinking about
Speaker 2: where your ideas and values have come from. In Australia
Speaker 2: when it comes to property. We've been encouraged to believe
Speaker 2: that the great Australian dream is owning our own home.
Speaker 2: Yet in many countries in Europe, it's entirely normal and
Speaker 2: expected that a family will rent and live in the
Speaker 2: same house for generations. Stable and secure tenants have a
Speaker 2: say in how the place is fixed and decorated, and
Speaker 2: never questioned paying rent for a lifetime. Your money story
Speaker 2: is influenced by your education and upbringing. You may have
Speaker 2: grown up surrounded by a clan of powerful female property
Speaker 2: investors who modeled to you from a young age that
Speaker 2: it's entirely possible, if not expected, to own several properties
Speaker 2: in adulthood. More likely, if you look at Australia's housing statistics,
Speaker 2: you either grew up moving from house to house as
Speaker 2: renting was your family's norm, or lived in a standard
Speaker 2: family home that was paid off using a good portion
Speaker 2: of your parents' wages each month. Australian government statistics from
Speaker 2: nineteen eighty one to now show that, although it has fluctuated,
Speaker 2: Australian home ownership is an even split, almost thirty thirty
Speaker 2: thirty between those who are renting, be own with a
Speaker 2: mortgage and c own outright. Nonetheless, the dream of owning
Speaker 2: your own castle was the theme song of our upbringing,
Speaker 2: the typical Oussie plan for securing a decent life. A
Speaker 2: lot of this was built on the idea of an
Speaker 2: Australia far removed from the society we live in today,
Speaker 2: and which it can't go without acknowledging exists on land
Speaker 2: stolen from its original custodians. There's a lot to rectify
Speaker 2: on that front, which needs its own whole book to explore. However,
Speaker 2: we can't discuss Australian property without recognizing that all of
Speaker 2: this housing we're talking about sits on unseated Aboriginal land.
Speaker 2: Please bear that in mind and pay respect as you
Speaker 2: use the resources of this great country to build up
Speaker 2: your own lives and help others. You may be wondering
Speaker 2: whether the great Australian dream is still a possibility, or
Speaker 2: even if it's a dream you want for yourself at
Speaker 2: all at the end of the day, whether you invest
Speaker 2: in property or shares, or simply your own day education.
Speaker 2: Creating financial security is about empowering you to use money
Speaker 2: as a tool to transform your life and the lives
Speaker 2: of others for the better. To start you off, I'll
Speaker 2: get you to explore your personal ideas and ambitions around property,
Speaker 2: which will help form the basis of a strategy for
Speaker 2: fulfilling those dreams, whatever they entail. Why property is important
Speaker 2: for women? Now. While we welcome any, all and no
Speaker 2: gender in our She's on the Money community, it's important
Speaker 2: that we talk about women when it comes to finance
Speaker 2: and property. For those who don't identify as female, please
Speaker 2: stay with me, as it's equally relevant to marginalized and
Speaker 2: defranchised groups and as a society affects us all. Investing
Speaker 2: in property can be particularly important for those looking to
Speaker 2: secure their financial future and personal safety, as covered in
Speaker 2: more depth in the following chapters. These reasons can be
Speaker 2: more emotionally driven than finance led. However, it's important to
Speaker 2: take both into account when making decisions that are right
Speaker 2: for you. Housing affordability is a real issue for women
Speaker 2: due to several factors including the gender pay gap on
Speaker 2: base salary thirteen point three percent in Australia, and society's
Speaker 2: reliance on women to carry the burden of domestic and
Speaker 2: caring duties, which forces them to work fewer or more
Speaker 2: flexible hours. Traditionally, women dominated industries tend to be paid
Speaker 2: less than male dominated industries, and while things are changing,
Speaker 2: often women are still paid less for doing the same
Speaker 2: job as a man. This data was confirmed by the
Speaker 2: Australian Bureau of Statistics the ABS in early twenty twenty three,
Speaker 2: which found that women earn on average eighty seven cents
Speaker 2: for every dollar earned by a man, or two hundred
Speaker 2: and fifty three dollars fifty less per week. All of
Speaker 2: these factors limit a woman's ability to save for a
Speaker 2: house deposit, while stretching the time it takes, making it
Speaker 2: harder to achieve, especially when fighting against rising property prices.
Speaker 2: It also affects her ability to service alone. On average,
Speaker 2: it takes Australian women a year longer than their male
Speaker 2: counterparts to save a deposit for a home. Even while
Speaker 2: women are starting to earn decent salaries and in some
Speaker 2: cases out earned men, we're still often worse off when
Speaker 2: it comes to money matters. Women are commonly kept out
Speaker 2: of the conversation when it comes to discussing finances at home,
Speaker 2: and no one is taught about it properly in school.
Speaker 2: Quite simply, managing money isn't a subject that women are
Speaker 2: encouraged to focus on. It's not that we're not smart enough,
Speaker 2: it's simply often assumed we're not interested. Women are also
Speaker 2: at higher risk of homelessness due to their increased vulnerability
Speaker 2: to domestic violence. Financial independence gives you agency over your
Speaker 2: life decisions and future. Being dependent on others for your
Speaker 2: financial welfare, whether another person, organization, or the government often
Speaker 2: comes with directives on how to behave in line with
Speaker 2: the donor's principles rather than yours. Let's turn that around.
Speaker 2: If you have dreams of owning property and no idea
Speaker 2: how on earth you're going to get there, you're not alone.
Speaker 2: If you've been trying to save for a house deposit
Speaker 2: that just seems to be getting further and further out
Speaker 2: of reach, you're not alone there either. By the time
Speaker 2: we finish this book, the goal you have for your
Speaker 2: home made look a little different from the white picket
Speaker 2: fence dream you were sold as a child, but it
Speaker 2: will come with a knowledge and skills to turn it
Speaker 2: into a reality. Why property is important for your future.
Speaker 2: Speaking of futures, while retirement seems a long way off
Speaker 2: and most of us dream of finishing work for good
Speaker 2: one day, the harsh reality is that women often don't
Speaker 2: have enough money to support themselves in retirement. While the
Speaker 2: government enforces superannuation contributions during your employment, because women often
Speaker 2: take significant periods of work due to pregnancy, childcare, and
Speaker 2: other caring and domestic duties, their superranuation at retirement is
Speaker 2: on average, significantly less than males. Many Australians rely on
Speaker 2: selling the family home come retirement and putting these funds
Speaker 2: towards their post salary lifestyle. If you're able to pay
Speaker 2: down a mortgage to increase your property equity how much
Speaker 2: you not the bank owns over the period of your
Speaker 2: working life, this has the potential to offer a nice
Speaker 2: buffer in retirement. In addition, if you manage to pay
Speaker 2: off your home by the time you retire, the majority
Speaker 2: of your accommodation costs will be taken care of, greatly
Speaker 2: reducing your outgoings. Your why first up before deciding on
Speaker 2: the how what, when, and where of your own personal
Speaker 2: property journey. It's important to know what's driving your decision
Speaker 2: and the ultimate goals you're striving for your why. When
Speaker 2: the chips are down and you're eating two minute noodles
Speaker 2: for the fifth Friday in a row so you can
Speaker 2: meet your increased mortgage repayments, you're going to need a
Speaker 2: pretty sol reason as to why you agreed to all
Speaker 2: of this in the first place. Buying property is a
Speaker 2: long term relationship that's not easy to jump out of
Speaker 2: in a hurry. That said, we look at various ways
Speaker 2: to keep your current lifestyle or close to it while
Speaker 2: paying down an asset at the same time throughout the
Speaker 2: book figuring Out Your Why. If you come to my
Speaker 2: mortgage broking team at Zella Money, the first thing they'll
Speaker 2: ask you is what kind of property are you looking
Speaker 2: to buy? And I'm going to let you in on
Speaker 2: a secret. They won't be satisfied with the answer, oh, well,
Speaker 2: I just want to buy a house. They'll keep prompting
Speaker 2: you what kind of house? Who's going to live there you?
Speaker 2: Or is it an investment? Where is it located? Are
Speaker 2: you ready now or making a five year plan? Why
Speaker 2: is this also important to you until you both have
Speaker 2: a really clear picture. Honestly, Victoria, I haven't thought about it.
Speaker 2: Can you give me some ideas? Everyone's why will be different.
Speaker 2: Where some are purely interested in buying property to generate
Speaker 2: in income stream, others are driven by the need to
Speaker 2: provide she for themselves and their family. Some might be
Speaker 2: doing it alone, while others might be doing it in partnership.
Speaker 2: Some may want to run a business from home, others
Speaker 2: are looking to create a private sanctuary. The great thing
Speaker 2: is that all these options are available to you. The
Speaker 2: tough thing is figuring out which one works best for you.
Speaker 2: So let's lay out a few ways to assess where
Speaker 2: you're at now and where you'd like to be at eventually.
Speaker 2: Your why. Getting to the heart of what's driving your
Speaker 2: desire to buy property is a great place to start.
Speaker 2: There will likely be several reasons, but there will usually
Speaker 2: be one main belief or motivation driving your decision. It
Speaker 2: could be the pool of having a place to cool
Speaker 2: your own or maybe using property to create a passive
Speaker 2: income earnings from something other than your own time and labor.
Speaker 2: For everyone, your budget will have a big influence on
Speaker 2: any financial decisions you make. And buying a house may
Speaker 2: well be the biggest financial decision you ever make. Take
Speaker 2: some time to reflect on this question, also written in
Speaker 2: your workbook, dig Deep and be honest with your answer.
Speaker 2: Why is buying property so important to you? The pros
Speaker 2: and cons of investing in property. Whether you are financially
Speaker 2: ready or just starting out, there is real pressure to
Speaker 2: buy property in Australia. There's a lot to consider around
Speaker 2: property before you can make the decision to purchase. And
Speaker 2: even if you determine that buying property is definitely for you,
Speaker 2: you still want to make sure to buy the right
Speaker 2: place at the right time. If you're a dedicated She's
Speaker 2: on the Money member, it's likely that you're driven by
Speaker 2: the goal of financial freedom life supported by a passive
Speaker 2: income stream. The question is property the right way for
Speaker 2: you to achieve this or are there other strategies that
Speaker 2: might be better for you. In my second book, Investing
Speaker 2: with She's on the Money, we look in detail at
Speaker 2: a number of investment pathways that can help build up
Speaker 2: your wealth. There is absolutely no expectation that property has
Speaker 2: to be the vehicle for this, although it can be
Speaker 2: some like Rich Dad, Poor Dad's Robert Kiyosaki suggests that
Speaker 2: owning your own home is not a nasset. However, this
Speaker 2: viewpoint is challenged by many, especially in regards to Australian property.
Speaker 2: My thoughts are that while property can be an epic asset,
Speaker 2: your family home shouldn't be viewed as such. With all
Speaker 2: financial purchases and lifestyles, comparisonitis is the devil, particularly because
Speaker 2: it's so hard to really know everyone else's history or
Speaker 2: circumstances beyond what you might see from the outside. You'll know,
Speaker 2: either from your own experience or from listening to my podcast,
Speaker 2: that comparisonitis can lead us down a path paved with
Speaker 2: bad debt, so we certainly don't want to invite that
Speaker 2: in at the scale of a mortgage. Before you agree
Speaker 2: to any property purchase, I really encourage you to think
Speaker 2: about what it is you're committing to and why. Run
Speaker 2: the numbers several times and follow the book's activities to
Speaker 2: test your saving and repayment threshold before you sign on
Speaker 2: the dotted line. Remember, when it comes to figuring out
Speaker 2: the best way to build your future wealth, you're truly
Speaker 2: running your own race. Let's briefly consider some of the
Speaker 2: pros and cons of investing in property. We'll look at
Speaker 2: many of these in more detail later, but just to
Speaker 2: get your brain juices flowing, here are some considerations unique
Speaker 2: to property investing. Ten reasons why pros of investing in property.
Speaker 2: One you meet the human need for shelter. Two it's
Speaker 2: a place to call your own. Three you can use
Speaker 2: it and enjoy it while you're paying it off, the
Speaker 2: ultimate buy now, pay later. Four Compared to some investments,
Speaker 2: it's reasonably straightforward to understand. Five. Medium property values historically
Speaker 2: have grown over time. Six it's typically a stable investment
Speaker 2: over the medium to long term. Seven it can generate
Speaker 2: income and or reduce the costs of running business. Eight
Speaker 2: it offers the potential to reduce your tax with negative gearing.
Speaker 2: Nine it can create access to funding when used as
Speaker 2: a security rather than cash. Ten you can have a
Speaker 2: direct impact on improving its value, unlike buying shares in
Speaker 2: a company. Cons of investing in property. One it can
Speaker 2: be really, really expensive. Two it may keep you in
Speaker 2: debt for a long time. Three it's difficult to predict
Speaker 2: interest rates, which can impact your standard of living. Four
Speaker 2: you may not be able to afford the house of
Speaker 2: your dreams, so find yourself paying off something you don't
Speaker 2: really love unless we change your property mindset. More on
Speaker 2: that to come. Five. It's hard to cash in quickly,
Speaker 2: what investors call an illiquid asset, unlike cash, which is
Speaker 2: liquid and immediately available. Six. Holding onto property costs money
Speaker 2: in ongoing maintenance fees, rates, body corporate and perhaps in
Speaker 2: lost or below market rental income, among other things. Seven.
Speaker 2: Property is not a set and forget investment. It requires
Speaker 2: ongoing care and maintenance. Eight. Property involves many moving parts
Speaker 2: and people, which can bring potential issues.
Speaker 1: Nine.
Speaker 2: Capital growth is not guaranteed. Despite what people like to say,
Speaker 2: the property market does not uniformly rise in every area
Speaker 2: every seven years and ten. It could be risky if
Speaker 2: you invest in areas slow to develop, or you are
Speaker 2: trying to make fast money using a flip strategy during
Speaker 2: times when the market drops. Your property beliefs, values, and goals,
Speaker 2: let's look a little more closely at your personal property beliefs, goals,
Speaker 2: and values. You may find that working through the prompts
Speaker 2: we're about to get to will get you to reconsider
Speaker 2: your initial Why that's good. It means it really started
Speaker 2: thinking more deeply about what property means for you and
Speaker 2: how it might fit into and impact your life. To
Speaker 2: figure out what makes you tick and why you're thinking
Speaker 2: about committing to the biggest expense of your lifetime, Let's
Speaker 2: walk through a series of questions together. Either write your
Speaker 2: notes in the space in your workbook, or if you're
Speaker 2: a dedicated diarist, grab a notebook and a pen. If
Speaker 2: you're like me, a shiny new one, especially for all
Speaker 2: your property dreams, goals and strategies. Let's begin, what are
Speaker 2: your main reasons for buying property? Seriously? Have you really
Speaker 2: sat down and thought about all of this? I mean properly.
Speaker 2: A lot of people we talk to at Zella and
Speaker 2: She's on the Money think that they want to get
Speaker 2: into property without ever having spent the time to consider.
Speaker 2: Why is owning real estate really that big on your
Speaker 2: list of priorities or is it just something you've been
Speaker 2: conditioned to believe is important. As we've talked about, we
Speaker 2: grew up being fed the great Australian dream. But take
Speaker 2: a look around, friend, is that your dream? Does it
Speaker 2: chime who you want to be? Australia has thankfully become
Speaker 2: far more open and inclusive in recent years. People live
Speaker 2: in all sorts of families and practice wildly different lifestyles.
Speaker 2: The desire to follow the norm is losing its grip
Speaker 2: if there's even a norm at all. So before you
Speaker 2: decide to commit to a significant cash stop, be sure
Speaker 2: you know why you're doing it. All reasons are equally valid,
Speaker 2: So this is just about getting clear on your reason.
Speaker 2: Why are you thinking of buying property for a place
Speaker 2: to call your own, to live in, just for now,
Speaker 2: to live in well into the future, as a wealth
Speaker 2: creation strategy, as an investor, as your retirement plan for
Speaker 2: its long term growth, Because you're sick of landlords and
Speaker 2: want to say in the place, because you're terrified of
Speaker 2: becoming homeless. Because your parents told you it was a
Speaker 2: good idea. Actually, come to think of it, No thanks,
Speaker 2: or at least not right now. Whatever you're responsive, write
Speaker 2: it down in your workbook. The financial commitment of a
Speaker 2: property loan. If you are seriously thinking about investing in property,
Speaker 2: do you understand what it means for your finances? We
Speaker 2: have gone through several reasons why owning property may be
Speaker 2: a particularly valuable investment for women, but that doesn't necessarily
Speaker 2: apply to all women, and certainly not all people taking
Speaker 2: on home ownership is a serious financial commitment. Not only
Speaker 2: must you save up for a deposit, you must first
Speaker 2: establish yourself as a positive loan risk for the bank
Speaker 2: to take on. That could mean extra effort to create
Speaker 2: an additional savings account, work to clear your existing personal loans,
Speaker 2: reducing or eliminating your credit card debts, and possibly taking
Speaker 2: on extra work or employment. Are you ready to take
Speaker 2: on a property loan? Have you got it in you
Speaker 2: right now? And even if you can do it for
Speaker 2: a sprint, are you sure you can sustain it for
Speaker 2: the long term? Remembering that a standard mortgage repayment term
Speaker 2: is thirty years. What savings do you already have and
Speaker 2: how much more might you need for a deposit? How
Speaker 2: much can or are you willing to direct towards paying
Speaker 2: a home loan for the next thirty years or so?
Speaker 2: Are you comfortable with the restrictions this might have on
Speaker 2: your lifestyle? In your workbook, list out some things you
Speaker 2: might have to forfeit if you were paying down alone.
Speaker 2: How does this make you feel the reality of managing
Speaker 2: a long term loan now? I don't want to get
Speaker 2: all doom and gloomy, but you have to consider how
Speaker 2: you might be able to keep paying your mortgage if
Speaker 2: the worst happened. We'll look more deeply at this in
Speaker 2: chapter seven, so no need to get tiery, but it's
Speaker 2: definitely worth thinking about. During COVID, the government introduced wage support,
Speaker 2: thanks offered moratoriums on repayments, and many landlords went over
Speaker 2: and above to keep their tenants housed. But it won't
Speaker 2: always be all in together when shit hits the fan.
Speaker 2: If you already had a home loan and got so
Speaker 2: severely injured yes today that you couldn't work today, what then, Hopefully,
Speaker 2: after listening to this book, you'll have got yourself some
Speaker 2: reliable insurances and some SotM. Smart savers will already have
Speaker 2: a decent emergency fund, which they will increase when they
Speaker 2: become homeowners. But these plans don't magically appear, and neither
Speaker 2: do the funds to support them. Make this conversation part
Speaker 2: of your planning. Are you prepared to manage a long
Speaker 2: term loan? Since nineteen ninety to now, mortgage interest rates
Speaker 2: have ranged between two point one four and fifteen point
Speaker 2: five percent. Could you manage this? If so, how what
Speaker 2: plans would you put in place? What about if you
Speaker 2: couldn't work for whatever reason. Can you afford insurance that
Speaker 2: would cover you in this event? And or other support plans?
Speaker 2: Who might be there for you? Where might you turn?
Speaker 2: Is this a realistic plan for the short and long term?
Speaker 2: Write down your responses in your workbook. The responsibility of
Speaker 2: owning property. Owning a property might sound like a dream
Speaker 2: come true. But even once you've saved that deposit, bought
Speaker 2: the place, and furnished it with your snazzy but affordable knickknacks,
Speaker 2: it's no time to kick back and lie like a
Speaker 2: lady lizard drinking in the sun. Owning a property comes
Speaker 2: not only as an ongoing financial cost, but a social
Speaker 2: and emotional one too. If you bought your place to
Speaker 2: live in, it's almost a guarantee that something many things
Speaker 2: had to give. Maybe you now have a ninety minute
Speaker 2: one way commute. Maybe you need to spend every second
Speaker 2: Sunday mowing the lawns because the landlord doesn't cover it anymore.
Speaker 2: Maybe you had to fall for two months of Sunday
Speaker 2: brunches because your whole water system blew up the day
Speaker 2: after you moved in. If you get bored with this
Speaker 2: place or itchy for a new lifestyle, one year hiatus
Speaker 2: in Hawaii, anyone changing things up becomes far more difficult
Speaker 2: as a homeowner. As a renter, you simply give notice
Speaker 2: and move on with your life. If the property is yours,
Speaker 2: it's yours to deal with two That's not to say
Speaker 2: you can't rent it out or even sell it, but
Speaker 2: both these are more hassled than giving two weeks notice.
Speaker 2: Then there's being a landlord. If you're an investor owner,
Speaker 2: you may not have sacrificed your walk to work proximity,
Speaker 2: but if you have tenants, you may be required to
Speaker 2: fix any issue they have with the house or appliances
Speaker 2: quick smart. If the breakdown happens over a weekend and
Speaker 2: is considered a health risk, Hello, emergency call out Bee.
Speaker 2: Whatever compromises you talked yourself into when you bought the place,
Speaker 2: triple them. More things go wrong than you will have
Speaker 2: ever thought of. Soon enough, you'll have listened to every
Speaker 2: single one of my podcasts, and that commute won't seem
Speaker 2: so shiny anymore. That lovely lawn that you imagined lying
Speaker 2: on reading She's on the money Book after She's on
Speaker 2: the money book has now become your worst nightmare. Those
Speaker 2: dream tenants who promise to lovingly tend to your place.
Speaker 2: They're gremlins. The trouble with property is it's a long
Speaker 2: term commitment. You'll probably have times when you get more
Speaker 2: sick of it then it could ever get of you worse. Still,
Speaker 2: unlike an annoying ex boyfriend or a bad haircut, you
Speaker 2: can't just ignore your house and its problems when you're
Speaker 2: over it. No matter what. Those pesky bills will keep
Speaker 2: showing up, but the bank will keep drawing down its fees.
Speaker 2: When you sign up for a home loan, you're committing
Speaker 2: to possibly the longest relationship you'll ever have. There are
Speaker 2: plenty of lifestyle limitations that come with owning property beyond
Speaker 2: just the mortgage repayments. That's not to say it won't
Speaker 2: be worth it overall, but now's the time to have
Speaker 2: a good hard think about whether you're ready to give
Speaker 2: up your current lifestyle to support your dream and future you.
Speaker 2: Are you ready to be a responsible property owner? Is
Speaker 2: making a home something that interests you? To what degree
Speaker 2: are fluffy cushions enough for Do you dream of floor
Speaker 2: plans and paint colors and exactly which oven you'd like
Speaker 2: in your kitchen? What about if these break down? If
Speaker 2: the windows start leaking, or the gas heating stops working,
Speaker 2: or your front door won't shut properly. Have you got
Speaker 2: the time, inclination, and budget to deal directly with builders
Speaker 2: and handymen to keep the place upright and secure? Are
Speaker 2: you ready to settle into living in a place for
Speaker 2: possibly the next thirty years or at least seven. To
Speaker 2: make it worthwhile, write down your responses in your workbook
Speaker 2: the responsibilities of being a landlord. There's a lot of
Speaker 2: chat around about the terrors of landlords, so let's tame
Speaker 2: that beast, shall we. If you're thinking about owning property,
Speaker 2: chances are you may one day become a landlord yourself,
Speaker 2: either by choice or necessity, if you've been a rent
Speaker 2: to yourself, or even if you've just watched the news lately.
Speaker 2: It's clear that while some landlords are greedy monsters, the
Speaker 2: majority are regular folk who got lucky and or worked
Speaker 2: hard to get a foot into property investment. These people
Speaker 2: are now doing their best to look after their own
Speaker 2: finances and the people who live in the home they provide.
Speaker 2: Everyone has a choice in this world to be a
Speaker 2: dick or to not be a di So you can
Speaker 2: be a landlord just don't be a landlord dick. The
Speaker 2: best way to do that is to know and fulfill
Speaker 2: your responsibilities under the law, and ideally go beyond those.
Speaker 2: To ensure your tenants are comfortable. You don't have to
Speaker 2: buy them super large fluffy bean bags or send a
Speaker 2: weekly grosser's box, but a nice welcome note and the
Speaker 2: invitation to get in touch should they need anything goes
Speaker 2: a long way to making them feel human. If you
Speaker 2: decide to employ a property manager, make sure to choose
Speaker 2: an ethical one who will do right by you and
Speaker 2: your tenants. Also, and most importantly, make sure you have
Speaker 2: allocated enough funds to looking after the joint. As a landlord,
Speaker 2: you may have to fix things straight away, even if
Speaker 2: it's something you might live with if it we your
Speaker 2: own home, so make sure you have the cash to
Speaker 2: service your property. You might need a redraw facility on
Speaker 2: your property loan, or consider getting landlord's insurance to help
Speaker 2: cover unexpected costs. Being financially responsible as an investor owner
Speaker 2: will take the emotion out of it and help ensure
Speaker 2: that both you and your tenants are looked after in
Speaker 2: the long run. Are you ready to be a responsible
Speaker 2: landlord if you're a landlord you must intend to issue
Speaker 2: straight away. Do you have the time, inclination, and budget
Speaker 2: to make repairs? If not, are you willing to pay
Speaker 2: and work with a managing agent to do so? Does
Speaker 2: your budget stretch to covering rental vacancies, tenants and or
Speaker 2: building damages, special levies and other unexpected costs? Are you
Speaker 2: willing to sacrifice your own lifestyle if needed to ensure
Speaker 2: your tenants and property are looked after? Write down your
Speaker 2: responses in your workbook. The ethical implications of owning property
Speaker 2: further to the landlord dilemma, People are becoming increasingly aware
Speaker 2: of the social impact of their decisions. Investors call this
Speaker 2: value investing, and in recognition of this, many trading platforms
Speaker 2: allow you the option to invest only in funds or
Speaker 2: companies that align with your personal values. A similar thought
Speaker 2: process can apply in property. The choice you make in
Speaker 2: materials to renovate or fix your home, what kind of
Speaker 2: power you use for your heating and cooking, and even
Speaker 2: what kind of plants you grow all affect the environment.
Speaker 2: The impact of one person owning several houses when it's
Speaker 2: well acknowledged that thousands of people around Australia sleep rough
Speaker 2: every night and that our properties sit on unseated Aboriginal
Speaker 2: land can give some people the ick. There are many ways,
Speaker 2: large and small, to help rebalance such disparity. You might
Speaker 2: consider investing in social housing or land reclamation projects, or
Speaker 2: contributing some of your income to supporting marginalized groups. For example,
Speaker 2: Pay the Rent is a grassroots Aboriginal initiative encouraging Australians
Speaker 2: to pay a small percentage of their income as rent
Speaker 2: for living on unseeded lands. There are several organizations that
Speaker 2: provide shelter to vulnerable women, who welcome donations both in
Speaker 2: time and money. As with any philanthropy, you can give
Speaker 2: inkind Support, fundraise, or myriad other initiatives that help to
Speaker 2: counterbalance the impact you have on the planet. It's up
Speaker 2: to you how creative you want to get. I'd love
Speaker 2: to hear your ideas, so be sure to let us
Speaker 2: know by commenting on our install or via this ses
Speaker 2: on the Money website. Together we can all make the difference.
Speaker 2: What are your ethics around property ownership? As with any
Speaker 2: investment or lifestyle, there are ethical implications to your decision
Speaker 2: and ways to mitigate against the negative impacts. Have you
Speaker 2: considered investing in schemes or activities that can work to
Speaker 2: build housing affordability. Can you list a few options. How
Speaker 2: about ensuring your building is environmentally sustainable? What are some
Speaker 2: things you could implement to ensure this? Write down your
Speaker 2: responses in your workbook Your Real Why. It's easy to
Speaker 2: see why and how we inherit beliefs from society and
Speaker 2: others around us. If we're not actively reflecting on our
Speaker 2: own personal reasons and personal beliefs around life, money, and
Speaker 2: what's important to us, we can be swayed by others stories,
Speaker 2: views and fears, many of which have been well developed
Speaker 2: decades ago against very different circumstances. Not to mention that you,
Speaker 2: my pretty butterfly, are the only you on this planet
Speaker 2: and so what you think, feel and ultimately do should
Speaker 2: be individual to you. Your real Why buying a house
Speaker 2: is important to you. Working through this chapter, you have
Speaker 2: reviewed your property, money beliefs and thought more about which
Speaker 2: of these are true to your story and those you
Speaker 2: may have inherited from others. Reflecting on these, write down
Speaker 2: in your workbook what is now true for you? Property
Speaker 2: story from Ruby thirty two from New Zealand and New
Speaker 2: South Wales. My partner and I are from New Zealand.
Speaker 2: After years of saving for a house, we became demoralized
Speaker 2: by increasing prices and the hundreds of people at open
Speaker 2: homes where we were looking to buy in Wellington. After
Speaker 2: the COVID borders opened, we decided to give up on
Speaker 2: our New Zealand property dream, moved to Sydney and chuck
Speaker 2: our money into shares, bonds and a couple of startup businesses.
Speaker 2: We are thankful to not have the one million dollars
Speaker 2: of debt and rising interest costs to think about if
Speaker 2: we had bought a house. We now have no desire
Speaker 2: to buy property and I can't see that changing in
Speaker 2: the next five to ten years. Mccanna thirty from Victoria.
Speaker 2: I moved to Australia when I was nineteen and since
Speaker 2: then have dreamt of owning my own house instead of
Speaker 2: paying someone else's mortgage. We started saving for a loan
Speaker 2: deposit in twenty fifteen when I was earning just forty
Speaker 2: three thousand dollars a year and my husband was earning
Speaker 2: twenty five dollars an hour as a casual. As we
Speaker 2: didn't have much knowledge of the property market, our mortgage
Speaker 2: broker was invaluable guiding us from the start of the
Speaker 2: process until the end. He's now a family friend. We
Speaker 2: secured a mortgage on incomes of fifty four thousand dollars
Speaker 2: and fifty thousand dollars respectively. We've been in our house
Speaker 2: for a bit over four years and now have enough
Speaker 2: equity to buy an investment house. The market is scarier
Speaker 2: than it looked when we purchased the first time, but
Speaker 2: my knowledge keeps growing and I know I'll never look back.
Speaker 2: Take note, buying property is a big decision and a
Speaker 2: serious commitment, possibly the longest relationship you'll have in your life,
Speaker 2: so not one to take on lightly. Property comes with
Speaker 2: pros and cons and is not the only pathway towards
Speaker 2: building future wealth. Dig deep to identify the true reason
Speaker 2: you want to buy property if you still do, and
Speaker 2: use that to guide you from here. Guys, that was
Speaker 2: the first chapter of Property with Shees on the money,
Speaker 2: and I really hope that you're inspired to take action
Speaker 2: when it comes to getting on the property ladder if
Speaker 2: that's what you want to get up to, and you
Speaker 2: smash all of your property goals, whether you're getting your
Speaker 2: first foot on the ladder or you're hunting for your
Speaker 2: dream home, or you're planning your fourth investment property. I
Speaker 2: don't mind what you're doing. I'm just so grateful to
Speaker 2: be part of the journey. If you loved this, you
Speaker 2: can purchase property it with She's on the Money from
Speaker 2: all Good book retailers, or you can listen to the
Speaker 2: rest of this audiobook by buying it on any good
Speaker 2: audiobook retailer. The advice shared on She's on the Money
Speaker 2: is general in nature and does not consider your individual circumstances.
Speaker 2: She's on the Money exists purely for educational purposes and
Speaker 2: should not be relied upon to make an investment or
Speaker 2: financial decision. If you do choose to buy a financial product,
Speaker 2: read the PDS TMD and obtain appropriate financial advice tailored
Speaker 2: towards your needs. Victoria Divine and She's on the Money
Speaker 2: are authorized representatives of Money Sherper Pty Ltd ABN three
Speaker 2: two one IS six four nine two seven seven zero
Speaker 2: eight AFSL four five one two eight nine