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Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations

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Speaker 1: woman and I'm here to acknowledge country t Glenn Young

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Speaker 1: Ganya Niana Kaka yah Ya bin Ahaka Nian our guy

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Speaker 1: in Nimbina, yakarum jar Dominyamka Domaga Ithawakaman damon Imlan bomber

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Speaker 1: bang Gadabomba in and now in wakah ghana on yak

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Speaker 1: rum jar Watnadaa. Hello, beautiful friends, we gather on the

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Speaker 1: lands of the Aboriginal people. We thank acknowledge and respect

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Speaker 1: the Aberiginal people's land that we're gathering on today. Take

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Speaker 1: pleasure in all the land and respect all that you see.

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Speaker 1: She's on the Money podcast acknowledges culture, country, community and connections,

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Speaker 1: bringing you the tools, knowledge and resources for you to thrive.

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Speaker 2: She's on the Money. She's on the Money. Hello and

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Speaker 2: welcome to She's on the Money, the podcast that shows

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Speaker 2: you investing isn't just for the rich, It's for you too.

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Speaker 2: If you've ever looked at the housing market and thought

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Speaker 2: that's actually literally never going to happen for me, you're

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Speaker 2: definitely not alone. What if I told you there were

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Speaker 2: other ways to get your foot in the property door.

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Speaker 2: I'm beck scited and here to show us how we

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Speaker 2: can invest in property without taking on a million dollar mortgage.

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Speaker 2: Is our favorite finance expert Victoria Divine. Hello, Vi Hello.

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Speaker 2: You can take on a million dollar mortgage if you

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Speaker 2: want to, but like, if you want, that's not what

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Speaker 2: you have to do to get into the property market.

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Speaker 2: That's actually crazy. And I mean I'm a skeptic right now,

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Speaker 2: but I really want to know. I actually hate it

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Speaker 2: so much. I did a presentation the other day actually

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Speaker 2: for Australian Unity and it was really really cool. I

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Speaker 2: went into this complete side note. I got invited to

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Speaker 2: their executive leadership retreat. Whoa soundspoosy. I was so scared

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Speaker 2: where I entered to them about like, you know, our

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Speaker 2: demographic Beck, like you and I and like what the

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Speaker 2: world looks like in nineteen seventy six, when people like

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Speaker 2: our parents were probably you know, thinking about property or

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Speaker 2: buying property. Property cost like twenty five thousand dollars and

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Speaker 2: the average property in Melbourne and Sydney cost about four

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Speaker 2: times your annual salary. Yeah, and so now if we

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Speaker 2: look at it, property in Melbourne and Sydney will cost

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Speaker 2: on average thirteen times your annual salary. And if you

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Speaker 2: were to and I did all the maths and stuff

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Speaker 2: in the background, that's why it's like so fresh in

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Speaker 2: my mind. And I was like, oh, you'll love this bad.

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Speaker 2: If salary and wage growth kept up with you know,

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Speaker 2: how prices of houses had increased, our average salary would

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Speaker 2: be about one hundred and ninety thousand dollars each per year.

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Speaker 2: So like, you know, each and every single one of

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Speaker 2: us would have an average. So like spack Man in

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Speaker 2: the middle, like that would just be They're like, oh, yeah,

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Speaker 2: most people earn. That reality is we earn on average

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Speaker 2: sixty five thousand dollars a year. But I think that

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Speaker 2: we still apply the same pressure that our parents' generation did.

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Speaker 2: I said to you right now, BEG, do you want

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Speaker 2: to buy property? Definitely? How the hell?

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Speaker 3: Yeah?

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Speaker 2: But you might you know, if we had a deep conversation,

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Speaker 2: you might go, yeah, I would. I would love to

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Speaker 2: own property, but I just don't think it's accessible for me,

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Speaker 2: or I just don't think with the lifestyle I lead

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Speaker 2: like that's an option. And I guess what today is

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Speaker 2: about is really teaching you that it can be an option,

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Speaker 2: that there's just a different way of going about it.

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Speaker 2: It's not going to be the you know, white picket

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Speaker 2: fence and three bedroom home on like a seven hundred

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Speaker 2: square meter block, Like that's just completely inaccessible for the

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Speaker 2: average person because the average of that type of property

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Speaker 2: in Melbourne and Sydney is about one point two million dollars.

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Speaker 3: Betch.

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Speaker 2: So I think that's important from my perspective to contextualize,

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Speaker 2: to give you like some solid proof that it is harder.

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Speaker 2: But what if I told you that you can still

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Speaker 2: get exposure to the property market without needing a house

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Speaker 2: deposit or even a mortgage. I'd say, Victoria, you're a liar. Victoria,

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Speaker 2: what MLM are you starting? What are you doing? Well,

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Speaker 2: you can actually invest in property beck on the share

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Speaker 2: market through something called an ariit And like we all

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Speaker 2: know that our girl Beck, she's now got more than

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Speaker 2: a thousand dollars in her She again, isn't that crazy?

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Speaker 2: That is so crazy? It was just like little bits

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Speaker 2: like five dollars every few weeks comes out. I think

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Speaker 2: Chares's shoot, hit you up so that you can be

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Speaker 2: like their ambassador of like girl, like, it's actually not

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Speaker 2: that hard. Yeah. I've been saying this for years. I've

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Speaker 2: had this podcast, what like six years, and I'm like,

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Speaker 2: I promise it's not that hard. I promise it's not

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Speaker 2: that hard. And people were like, oh no, like I'll

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Speaker 2: do it when I earn more. I'll do it when

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Speaker 2: I do. Like you just started, and you're like, hold on,

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Speaker 2: hold on, hold on, yeah, yeah, yeah, this is not

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Speaker 2: that bad. But Beck, you could give yourself exposure to ariit,

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Speaker 2: okay through Chasya's or and like, it's not about chairs

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Speaker 2: Eya's at all. This is more about like the ability

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Speaker 2: to access ARIA which is a real estate investment trust,

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Speaker 2: and these are you can buy them on the AX

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Speaker 2: in the same way that you would like look up

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Speaker 2: you know, the ASX top two hundred. You would just

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Speaker 2: look up ariits and see what comes up. But they

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Speaker 2: basically own and manage big income producing properties like shopping

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Speaker 2: centers or warehouses or office buildings or even like storage facilities,

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Speaker 2: which make bank by the way, really yeah, and they're

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Speaker 2: super super accessible. So if you're like, oh, I really

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Speaker 2: like the idea of property because to me it feels

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Speaker 2: a bit more stable, like the share market maybe is

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Speaker 2: not what you're super super comfortable with, but you also

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Speaker 2: don't have heaps of cash to start with, Like, oh,

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Speaker 2: you can start with five dollars. Yeah, so if you

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Speaker 2: want exposure to that, an ariit might be a good idea, Okay,

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Speaker 2: so be say units. Yeah, you can buy units in

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Speaker 2: a ariit, which is not a pun so not shares.

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Speaker 2: They're not shares, they're not shared. Okay, they're not shares,

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Speaker 2: and they are different. So a share and a unit

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Speaker 2: is a different thing. Sometimes people use them interchangeably, and

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Speaker 2: those people, my friend, are wrong. I see a share

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Speaker 2: belongs to a company and they issue shares. Units belong

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Speaker 2: to trusts. Right, So if you would to establish a trust,

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Speaker 2: you'd have units in that trust. You wouldn't have shares

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Speaker 2: in that trust. And an ariit is a trust, so

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Speaker 2: you're basically a unit holder, not a shareholder. Does that

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Speaker 2: make a lot of a difference, Not really if we're

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Speaker 2: being brutally honest, because all of these things are so

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Speaker 2: highly regulated. But at the same time, to me, it

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Speaker 2: does change your risk profile because obviously property over time

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Speaker 2: has been a little bit more stable, and like, if

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Speaker 2: we look at a risk and reward chart and I

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Speaker 2: like drew one up for you, we've kind of got

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Speaker 2: like cash and then some bonds and like you're getting

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Speaker 2: a bit more risky and property would sit there, and

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Speaker 2: then like Australian shares that's like getting a bit more risky,

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Speaker 2: and then international shares up here. So basically you're kind

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Speaker 2: of using the share market platform to invest, but taking

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Speaker 2: your risk back down to a property level. God, if

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Speaker 2: that makes sense, yes, yes, yes, definitely, so on the

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Speaker 2: stock market or on the share market, also very interchangeable,

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Speaker 2: they trade in exactly the same way, so like it's

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Speaker 2: not more complex to you as a buyer, even though

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Speaker 2: you might go, oh, but I've never heard of these

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Speaker 2: God's probably just because you haven't looked them up. Like

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Speaker 2: it's because you haven't been told about them. And that's

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Speaker 2: what this whole episode is for. So with an ariit,

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Speaker 2: you're not technically an owner of the company. So with

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Speaker 2: a share, you like buy a tiny piece of the

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Speaker 2: pie and then that enables you to get part of

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Speaker 2: their profit and part of their growth, and you're kind

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Speaker 2: of like a tiny little CEO. Absolutely. Instead, in an ariit,

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Speaker 2: you are a beneficiary of the trust. Sure, so becoming

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Speaker 2: a trust fund baby. Oh we love trust fund babies, right,

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Speaker 2: could you say that? Technically? I mean technically you're a

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Speaker 2: beneficiary of the trust. Okay, for someone who's the trust

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Speaker 2: fund baby would be the beneficiary of a trust, so

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Speaker 2: like for me, that's the same. But I'm buying my

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Speaker 2: status myself. Yeah, I didn't have wealthy parents. They didn't

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Speaker 2: set up a trust for me. I'm gonna do it myself.

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Speaker 2: Oh my god, I love So if you want to

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Speaker 2: be a trust one baby, like, that's maybe a way

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Speaker 2: in it's never too late to be a trust one baby,

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Speaker 2: never too late, And you could do it with five

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Speaker 2: dollars and then like in your like insta bio, you

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Speaker 2: could write trust one baby. Wow, I think that would

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Speaker 2: be fun. But what that means, yes, is like with shares,

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Speaker 2: you kind of become, as I was explaining before, a

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Speaker 2: part owner of the company. And like, technically you have

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Speaker 2: voting rights and dividends, but like because we're tiny and

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Speaker 2: because like we're only buying small amounts, like you can vote,

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Speaker 2: but there's not a lot going on there. Sure, But

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Speaker 2: with units, you hold a stake in the trust's assets,

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Speaker 2: so the property portfolio, and you're entitled to a proportional

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Speaker 2: share of the income that that trust generates. And instead

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Speaker 2: of being called dividends. They're called distributions. Got you again

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Speaker 2: because trust fun babies get distributions, I see. And that

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Speaker 2: is why with ariits like when it comes to like

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Speaker 2: tax time, you'll see annual distribution statements, which I feel

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Speaker 2: like so many people are like, oh my god, Like

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Speaker 2: I signed up to this, and at tax time, I

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Speaker 2: got an annual distribution statement and I also got my

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Speaker 2: tax statement from Chaza's and like everything's a bit confusing.

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Speaker 2: I promise it's just because it's the first time you've

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Speaker 2: seen it. Like it's fine. So instead of that, you'll

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Speaker 2: get your annual distribution statement instead of a dividend slip

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Speaker 2: in the mail. Because the income kind of flows through

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Speaker 2: a trust structure, which means you're buying into that trust.

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Speaker 2: But they could also like put new properties and stuff

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Speaker 2: into that trust as well, which you would then benefit from.

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Speaker 2: So to give you a good example, if you wanted

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Speaker 2: something to look up on Chazy's, because you're like I

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Speaker 2: don't even know where to look up, Yeah this, do

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Speaker 2: I look up Ariit, you could because like you know,

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Speaker 2: I'm not trying to be promotional here, but Chaz's has

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Speaker 2: its like AI search function, So if you looked up ariit.

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Speaker 2: It would come up with a lot of different like

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Speaker 2: curriit options, But Goodman Group, I would say, is and

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Speaker 2: this is not a recommendation. This is just my example

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Speaker 2: and the reason I'm using this is because it is

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Speaker 2: Australia's largest ariit I see and it's ASX ticker code

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Speaker 2: if you want to look it up, is GMG. But

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Speaker 2: it's focused on industrial property and logistics, so it buys

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Speaker 2: lots of warehouses and data centers and in that space

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Speaker 2: demand has absolutely surged because of AI. So the reason

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Speaker 2: AI is making that surges because there's a lot of

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Speaker 2: infrastructure needed for AI and you need to put it

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Speaker 2: in warehouses, you need to put it in data centers,

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Speaker 2: and this company buys that. So they're just the biggest

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Speaker 2: one in Australia. Are they the best? Who knows? It's

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Speaker 2: not a recommendation, it's just a like if you're starting

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Speaker 2: to quote do your research, how do I do my research?

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Speaker 2: What does that mean? Have a look at this, get

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Speaker 2: a feel for what that looks like, and then we

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Speaker 2: can find some more and like maybe find one that

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Speaker 2: really aligns with your values if that's what you're looking for.

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Speaker 2: Cool okay, okay, okay, and like an RAIT is the

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Speaker 2: only option to invest in property on the share market

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Speaker 2: or are there other ways to get in? So we

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Speaker 2: always talk about ETF, so I I always talk about

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Speaker 2: ets so I don't pick You're the first to bring

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Speaker 2: them up. You're just like sick of me yapping about

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Speaker 2: how cool I think they are. But we talk or

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Speaker 2: I talk a lot about them being one of the

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Speaker 2: easiest ways to get instant diversification in your portfolio. And

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Speaker 2: I would say that the property market is no different.

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Speaker 2: So instead of just picking one ariit and just being like, oh, well,

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Speaker 2: I hope Goodman does a good job for me, you

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Speaker 2: can actually invest in a real estate ETF gotcha that

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Speaker 2: would then hold a lot of different ariits yep. So

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Speaker 2: instead of an ETF that goes, oh, I'm going to

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Speaker 2: pick like the Australian Top one hundred and it's got

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Speaker 2: things like Woolworths Group and it's got like BHP and

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Speaker 2: you kind of go, oh, I know those companies, you

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Speaker 2: might look at an ETF that holds ariits and be

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Speaker 2: like what the heck? M Like, I don't really understand

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Speaker 2: what these companies are. And that's where we've got to

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Speaker 2: like do a bit of googling, like how good is

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Speaker 2: it that we live in twenty twenty five and we

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Speaker 2: can just google the answer? What is Goodman group? Tell

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Speaker 2: me how responsible they are? Like I ask google everything?

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Speaker 1: Right?

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Speaker 3: You know what?

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Speaker 2: That's a lie? I asked chutchpt a lot. Don't tell anybody,

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Speaker 2: especially you who doesn't agree with chut ChiPT. But to

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Speaker 2: give you another example of something that you could look up,

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Speaker 2: you could look up the Vanguard Australian Property Securities Index ETF. Okay,

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Speaker 2: it's a lot easier if you just type in the

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Speaker 2: ticket code a VAP VAP VAP, gotchaap, It's like a WAP,

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Speaker 2: Yes it's VAP. But they hold lots of different ariits.

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Speaker 2: So they hold Goodman, they hold Center, and they also

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Speaker 2: hold Stockland. And you might have heard a lot about

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Speaker 2: stockland before because they own lots of like supermarket locations,

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Speaker 2: so like they might own the building that then coals

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Speaker 2: and woolies lease from. Like you walk into a Stockland

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Speaker 2: and they've got like their baker's delight, they've got their

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Speaker 2: like oh you know they're woolies and like that local

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Speaker 2: place that always does a really good dumplings. Like, yes,

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Speaker 2: they rent their stockland locations out to other businesses. That

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Speaker 2: makes so much. It's realist still, it's not you know,

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Speaker 2: residential real estate. But the money that they make is

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Speaker 2: from the leases that they lease out to people like

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Speaker 2: Baker's Delight or Brumbies or Woolies. There you go, right,

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Speaker 2: So that's where the money is coming from. It's not

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Speaker 2: just from owning property. Yes, property over time increases in value,

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Speaker 2: but the income part and then stockland also have gone

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Speaker 2: into building homes, so they do like house and land

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Speaker 2: packages and stuff like that. My god, may as well.

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Speaker 2: I mean, the more money you get, well, that's it.

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Speaker 2: Why not, That's exactly what we were going to do. Yeah,

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Speaker 2: these ETFs basically hold ariits and they can be a

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Speaker 2: really good option for you if you're like, well, I

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Speaker 2: want access to the real estate market, but I don't

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Speaker 2: want to go buy just one ariit. Because Victoria said,

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Speaker 2: it's not always a good idea to put all your

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Speaker 2: eggs in one basket. You could look at an ETF

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Speaker 2: and like, we just have to be really caught, not

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Speaker 2: really cautious. I feel like I'm trying to scare you.

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Speaker 2: I'm not, But like when we pick an ETF, just

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Speaker 2: really understanding what the holdings are of it, because obviously

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Speaker 2: an ETF is basically just a basket. It's a it's

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Speaker 2: a vehicle. Yep, it's your clown car, right, what types

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Speaker 2: of clowns are you putting in the car? Do you

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Speaker 2: want to know which ones you've got and want to

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Speaker 2: hit so different? You've got lots of different ones. I

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Speaker 2: don't want three, it's the same. You don't want through

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Speaker 2: the Absolutely, like if you're gonna like fill a clown

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Speaker 2: car like I need an elephant, I need, like you know,

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Speaker 2: an actual clown, I need the monkey, like I want

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Speaker 2: all of them in all of them. Absolutely. I think

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Speaker 2: it's really important that you understand what companies they hold

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Speaker 2: because that could give you a lot of peace of mind. Yes,

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Speaker 2: and as Warren Buffet Buffet you can call him Warren Buffet.

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Speaker 2: Sorry that feels but like he's American, so it would

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Speaker 2: be Buffett. But if it was French, it might be

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Speaker 2: Warren Buffo, he says, to make sure you understand before

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Speaker 2: you invest. I think something like that, And I mean,

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Speaker 2: maybe I'm the next war and Buffett watch out. But

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Speaker 2: I agree, like I just go, if you're going to

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Speaker 2: buy this, just do a bit of googling what's good Man,

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Speaker 2: what's center, Like, what's stockland, what do they hold? So

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Speaker 2: that you feel confident. What would be the benefits of

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Speaker 2: investing in riits and real estate ETFs? I mean you

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Speaker 2: can call yourself a trust fund, baby, Yes, it's one.

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Speaker 2: That's like number probably the biggest benefit. Yeah, I would say,

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Speaker 2: as I touched on before, like instead of having to

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Speaker 2: have a two hundred thousand dollars deposit, And like, maybe

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Speaker 2: I'm scaring you a little bit because I have a

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Speaker 2: mortgage broking business and I have six beautiful mortgage brokers

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Speaker 2: who get first home owners into their properties every single day.

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Speaker 2: And most of the time it's not with a twenty

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Speaker 2: percent deposit. Absolutely, with an ariit really low barrier to

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Speaker 2: entry so that you don't need a big deposit. There's

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Speaker 2: no stamp duty to pay because I pay it for you,

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Speaker 2: no building inspections. You just kind of open your brokery jap,

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Speaker 2: pick an oriit and you're in, Oh my god, that's

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Speaker 2: so good. And getting into the market if you are

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Speaker 2: a first home buyer, ask miss Jess Gricci, Yeah takes forever.

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Speaker 2: So like this is a really easy way to go.

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Speaker 2: I'm an exposure to property, and I want it right now.

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Speaker 2: Money win. I love a regular comestream. I don't know

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Speaker 2: anybody who doesn't like getting paid. We all like getting paid,

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Speaker 2: right absolutely. Ariits collect rent from their tenants and then

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Speaker 2: they pass most of that back to their investors as distribution.

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Speaker 2: Is that so money wins, so you can kind of

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Speaker 2: pocket and they usually pay quarterly or semi annual income,

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Speaker 2: so it's not going to be like consistent consistent. Sure,

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Speaker 2: that's the same as any type of share. You only

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Speaker 2: get your distributions or your dividends, sorry, when it's a

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Speaker 2: share every six months or every twelve months, So like

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Speaker 2: there's no real difference there. I would say, sure, but

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Speaker 2: you don't even have to chase her tenant for rent.

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Speaker 2: You don't have to be like, hey rent stewbabes like

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Speaker 2: they do that. You don't have to feel bad about it.

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Speaker 2: I would feel bad if I was a landlord. I

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Speaker 2: would feel so bad asking for it. But you don't

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Speaker 2: have to. Stockland can do it for you. But it's

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Speaker 2: so good, so you don't worry about that exactly. And

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Speaker 2: then I would say, another benefit is the potential for

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Speaker 2: capital growth, So like all of us are seeing at

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Speaker 2: the moment, the property is increasing in price like every

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Speaker 2: man in his dog And like, I'm bitching about this too, because,

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Speaker 2: like I have shared that I'm trying to buy a

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Speaker 2: new house, I go to auctions and they go so

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Speaker 2: far over I'm annoyed. Yeah, and I know that the

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Speaker 2: market is still increasing. How much longerfore, who knows. But

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Speaker 2: over time the value of property in an ariit can rise,

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Speaker 2: and as that happens, the unit price on the stock

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Speaker 2: market climbs as well. So like let's say, you know,

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Speaker 2: ten years ago, an ariit would have cost you ten

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Speaker 2: bucks to get into. Now this one in particular might

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Speaker 2: be twenty dollars. That's kind of how house prices go to.

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Speaker 2: So that's kind of a win. And just like shares,

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Speaker 2: if investors get really excited about like certain sectors, like

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Speaker 2: if you if you're really into AI and you're like, oh,

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Speaker 2: I love the idea of having lots of data centers

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Speaker 2: full of like AI infrastructure, you can find like an

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Speaker 2: ETF that holds only those ariits, or you know, if

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Speaker 2: you're a little bit more conservative, and that's why I've

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Speaker 2: mentioned Stockman and Goodman. Right these places they just down

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Speaker 2: really big, like the skyscrapers in the city, which, as

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Speaker 2: you can tell, are quite tall. Lots of different tenants

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Speaker 2: on lots of different levels. Yeah, Stockland has supermarket like facilities,

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Speaker 2: but they're not just the one supermarket. It's like the

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Speaker 2: whole center. Right, you might go, ah, I really like. Yeah,

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Speaker 2: some of the little shops you know, in a like

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Speaker 2: financial downturn might have to close. You know, the nail

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Speaker 2: shop might not get as many clients. Actually that's not true.

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Speaker 2: The nail shop during a financial downturns booming because of

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Speaker 2: the lipstick index. Yes, so like the little treaty treats

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Speaker 2: people like you know what if I can't buy a

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Speaker 2: new car or I can't pay rent, I'll just get

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Speaker 2: my nails done and then I'll feel good about myself. Anyway,

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Speaker 2: completely different conversation. But you still have access to capital

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Speaker 2: growth because you go well during financial downturn the supermarket

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Speaker 2: people still need food. We all buy out the toilet paper. True,

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Speaker 2: I'm pretty sure woolies could still pay their rent. Yeahbolutely right. Anyway,

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Speaker 2: then I love liquidity. Liquidity is basically how quickly you

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Speaker 2: can get rid of something. So if I said to you,

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Speaker 2: how liquid are you right now?

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Speaker 3: Beck?

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Speaker 2: You probably have some cash sitting in a bank account

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Speaker 2: and we could like trot down to the AATM pull

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Speaker 2: that out. Great, very liquid. Your ETFs or your like

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Speaker 2: shares on your shares these app not as liquid, but

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Speaker 2: you could probably get that cash back into your hands

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Speaker 2: in like three days if you really really needed to. Sure,

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Speaker 2: so little less liquid. But then property in general, like

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Speaker 2: if it and my house is on the market right

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Speaker 2: now as of recording, I'm trying to sell that, but

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Speaker 2: I don't get cash for that the second I decide

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Speaker 2: to sell. True, I've had to lease the property, I've

384
00:19:36,040 --> 00:19:37,879
Speaker 2: had to style the property, I've had to you know,

385
00:19:38,119 --> 00:19:41,119
Speaker 2: put it online. We're doing open for inspections, and then

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Speaker 2: once someone decides to buy it, we have settlement. I'm

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00:19:44,080 --> 00:19:47,399
Speaker 2: very flexible on settlement terms, but most properties settle between

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Speaker 2: thirty and one hundred and twenty days, with ninety days

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Speaker 2: being the most common settlement. Yeah, that's at least three months,

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00:19:53,920 --> 00:19:56,119
Speaker 2: got you, gotcha. I can get that cash back in

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Speaker 2: my hot little hands. So not liquid, not very liquid,

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00:19:59,440 --> 00:20:02,800
Speaker 2: not very lick could But when you're buying and selling ariits,

393
00:20:03,160 --> 00:20:05,600
Speaker 2: you've got that three day share thing. It's like the

394
00:20:05,680 --> 00:20:09,000
Speaker 2: same as the share market, so like you can just

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00:20:09,240 --> 00:20:11,440
Speaker 2: sell your shares in that you don't have to wait

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00:20:11,520 --> 00:20:15,240
Speaker 2: for them to sell the supermarket. Yeah, so I really

397
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Speaker 2: like that there's no waiting months for settlements or like

398
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Speaker 2: paying an agent to list your house, and you can

399
00:20:20,680 --> 00:20:23,160
Speaker 2: kind of rebalance or top up or cash out whenever

400
00:20:23,240 --> 00:20:27,160
Speaker 2: you need, but still get exposure to real estate. Yeah, okay,

401
00:20:27,600 --> 00:20:30,000
Speaker 2: if that's what you're into, right, I like that, And

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00:20:30,080 --> 00:20:32,359
Speaker 2: then I would say the last thing, None of the

403
00:20:32,440 --> 00:20:36,119
Speaker 2: additional stress in ariits exists for being a landlord. So

404
00:20:36,320 --> 00:20:37,960
Speaker 2: like someone that you or me who kind of I

405
00:20:38,000 --> 00:20:39,840
Speaker 2: don't think either of us resonate with the idea of

406
00:20:40,320 --> 00:20:44,440
Speaker 2: being a landlord, but there is teams of leasing experts

407
00:20:44,520 --> 00:20:49,000
Speaker 2: and maintenance experts and tenant negotiators and finances. You aren't

408
00:20:49,040 --> 00:20:50,960
Speaker 2: involved in any of that. So if you really like

409
00:20:51,040 --> 00:20:54,080
Speaker 2: the idea of real estate, but you also, like I

410
00:20:54,119 --> 00:20:55,639
Speaker 2: don't want to buy a house, lease it out and

411
00:20:55,720 --> 00:20:59,120
Speaker 2: being investor in that way, this could be a sexy option.

412
00:20:59,480 --> 00:21:01,640
Speaker 2: That's such a great idea, And I know you don't

413
00:21:01,680 --> 00:21:03,920
Speaker 2: have like you know, a lot of people want to

414
00:21:03,920 --> 00:21:06,720
Speaker 2: get into the I mean I do personally, and you know,

415
00:21:06,840 --> 00:21:10,320
Speaker 2: buy properties for the security of having a roof of

416
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Speaker 2: my head forever. But with this in an indirect but

417
00:21:14,200 --> 00:21:17,240
Speaker 2: also direct kind of way, you could make money with

418
00:21:17,480 --> 00:21:19,680
Speaker 2: this to eventually afford something of that. So I know

419
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Speaker 2: that this is exactly so I'm actually curious to interest

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Speaker 2: rates like affect the riits. Yes, they do, and I

421
00:21:27,680 --> 00:21:29,840
Speaker 2: feel like there's been a lot of conversation about interest

422
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Speaker 2: rates recently. So firstly, one thing that is very important

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Speaker 2: to note about ariits is that, as you probably could understand,

424
00:21:40,400 --> 00:21:43,720
Speaker 2: just like you going and buying a residential property to

425
00:21:44,119 --> 00:21:47,159
Speaker 2: have an iriit, it takes a lot of debt to

426
00:21:47,320 --> 00:21:51,760
Speaker 2: buy and run. Properties like these aren't always super like.

427
00:21:51,800 --> 00:21:53,639
Speaker 2: If you looked at their balance sheet, they might be

428
00:21:54,119 --> 00:21:57,159
Speaker 2: generating some great cash, but they might also be in

429
00:21:57,320 --> 00:22:00,240
Speaker 2: a whole heap of debt and that doesn't have to

430
00:22:00,320 --> 00:22:04,040
Speaker 2: be scary. But if interest rates for money is cheaper,

431
00:22:04,440 --> 00:22:08,080
Speaker 2: so borrowing gets cheaper, which then boosts the profits that

432
00:22:08,200 --> 00:22:10,760
Speaker 2: they get because they're not paying six percent for their

433
00:22:10,840 --> 00:22:13,840
Speaker 2: mortgages anymore. Technically they might be paying five and a

434
00:22:13,880 --> 00:22:16,720
Speaker 2: half percent, And that makes a big difference in an ariit,

435
00:22:16,840 --> 00:22:20,719
Speaker 2: because we're talking about millions, if not hundreds of millions,

436
00:22:20,760 --> 00:22:23,440
Speaker 2: if not billions of dollars worth of property, so we're

437
00:22:23,480 --> 00:22:25,760
Speaker 2: not talking oh yeah, they own like three million dollars

438
00:22:25,800 --> 00:22:28,440
Speaker 2: worth of but that's not it at all. It's massive.

439
00:22:29,040 --> 00:22:33,280
Speaker 2: So if interest rates rise, the debt actually gets more

440
00:22:33,320 --> 00:22:35,720
Speaker 2: expensive and then it eats into the returns that you get.

441
00:22:36,119 --> 00:22:38,399
Speaker 2: So right now, and this is one of the reasons

442
00:22:38,400 --> 00:22:40,560
Speaker 2: why we're doing this episode is lots of people are going, oh,

443
00:22:40,600 --> 00:22:43,119
Speaker 2: interest rates are dropping, ariits are looking a little bit

444
00:22:43,160 --> 00:22:45,280
Speaker 2: more SEXYV tell me a little bit more about them,

445
00:22:45,800 --> 00:22:50,280
Speaker 2: because they're obviously becoming a little bit more attractive. Secondly,

446
00:22:50,880 --> 00:22:56,680
Speaker 2: an diriit is built for income, so otherwise it wouldn't

447
00:22:56,800 --> 00:23:00,399
Speaker 2: exist because what's the point of creating this structure and

448
00:23:00,480 --> 00:23:03,040
Speaker 2: having this trust if we're not making money? Of course,

449
00:23:03,320 --> 00:23:07,560
Speaker 2: like there's no point they're required to pay out. So

450
00:23:07,760 --> 00:23:10,719
Speaker 2: legally they're required to pay out most of what they

451
00:23:10,800 --> 00:23:14,440
Speaker 2: earn straight back to investors. Wow money whin, which makes

452
00:23:14,480 --> 00:23:18,480
Speaker 2: them I would say, very appealing in low rate environments

453
00:23:19,000 --> 00:23:22,280
Speaker 2: when things like term deposits or bonds are over. So

454
00:23:22,359 --> 00:23:25,200
Speaker 2: you're probably seeing a lot of conversation in our shees

455
00:23:25,280 --> 00:23:27,919
Speaker 2: on the money community but also the community in general

456
00:23:28,200 --> 00:23:31,359
Speaker 2: about like, oh, my interest rate on my high interest

457
00:23:31,400 --> 00:23:33,840
Speaker 2: savings account is going down? What the hell? Well, that's

458
00:23:33,880 --> 00:23:37,880
Speaker 2: because interest rates are coming down, and when interest rates

459
00:23:37,960 --> 00:23:40,399
Speaker 2: come down, so does your savings rate. But then your

460
00:23:40,440 --> 00:23:42,920
Speaker 2: mortgage rate drops, so it's like a great time to

461
00:23:43,040 --> 00:23:44,720
Speaker 2: have a mortgage, but not a great time to have

462
00:23:44,760 --> 00:23:47,800
Speaker 2: a savings account. So something that's also interesting is that

463
00:23:48,000 --> 00:23:52,240
Speaker 2: ariits usually move or change their cash rate before the

464
00:23:52,440 --> 00:23:56,080
Speaker 2: RBA even makes its announcement because markets are forward looking,

465
00:23:56,240 --> 00:23:58,320
Speaker 2: so they're kind of predicting, oh, this will go down,

466
00:23:58,440 --> 00:24:00,719
Speaker 2: so we're going to change this and this, And if

467
00:24:00,800 --> 00:24:03,960
Speaker 2: investors expect their rates to go up, like their interest rates,

468
00:24:03,960 --> 00:24:06,639
Speaker 2: they're going to be paying more money. They often start

469
00:24:06,800 --> 00:24:09,720
Speaker 2: selling riits ahead of time because they're like, Okay, cool,

470
00:24:09,760 --> 00:24:12,600
Speaker 2: I can see the interest rates are probably going to surge,

471
00:24:12,840 --> 00:24:15,080
Speaker 2: Like maybe I'll sell now because I don't want to

472
00:24:15,119 --> 00:24:17,560
Speaker 2: be in this anymore. And if they think that cuts

473
00:24:17,600 --> 00:24:20,200
Speaker 2: are on the horizon, I eat right now. There's a

474
00:24:20,240 --> 00:24:22,800
Speaker 2: lot of conversation about oh, when's the next interest rate cut?

475
00:24:22,880 --> 00:24:26,720
Speaker 2: What's going on? Riits can really rally before the RBA

476
00:24:26,960 --> 00:24:29,879
Speaker 2: even touches the cash rate because people are kind of like, oh,

477
00:24:29,960 --> 00:24:31,760
Speaker 2: we better get in because it's about to get good.

478
00:24:32,080 --> 00:24:35,159
Speaker 2: Got you, right? But Beck, you and I are long

479
00:24:35,280 --> 00:24:37,520
Speaker 2: term investors, so you don't actually want to be dipping

480
00:24:37,640 --> 00:24:39,639
Speaker 2: in and out. But that's just how the market react.

481
00:24:39,800 --> 00:24:42,520
Speaker 2: So I'm thinking about like risks and stuff like that.

482
00:24:42,600 --> 00:24:44,200
Speaker 2: So it sounds like that's the only risk. Like, if

483
00:24:44,440 --> 00:24:48,600
Speaker 2: you know there's an expected rate increase, they start selling

484
00:24:48,800 --> 00:24:51,720
Speaker 2: riits ahead of time, and then I assume we don't

485
00:24:51,760 --> 00:24:54,560
Speaker 2: make as much money. But like, is that the only risk? No,

486
00:24:54,800 --> 00:24:56,639
Speaker 2: and I would not be doing my job if I

487
00:24:56,720 --> 00:24:58,639
Speaker 2: didn't try and scare the hell out of you. At

488
00:24:58,640 --> 00:25:01,440
Speaker 2: the same time, it's like educ you, right, I would

489
00:25:01,480 --> 00:25:03,600
Speaker 2: say the interest rates are only one part of the

490
00:25:03,640 --> 00:25:07,000
Speaker 2: bigger puzzle. If you're really serious about adding property to

491
00:25:07,080 --> 00:25:09,440
Speaker 2: your portfolio, I would say that there are a lot

492
00:25:09,560 --> 00:25:11,640
Speaker 2: of other things that you really need to be across.

493
00:25:12,160 --> 00:25:15,040
Speaker 2: So let's take a really quick break because I need

494
00:25:15,080 --> 00:25:16,879
Speaker 2: a cup of tea. Yeah, I'll walk you through the

495
00:25:16,920 --> 00:25:19,760
Speaker 2: stuff the very switched on investors are actually looking at,

496
00:25:19,800 --> 00:25:21,560
Speaker 2: because the last thing you want to do is invest

497
00:25:21,600 --> 00:25:24,320
Speaker 2: in something that you actually don't understand. So guys don't

498
00:25:24,359 --> 00:25:31,399
Speaker 2: go anywhere. All right, Beck, we are back, and before

499
00:25:31,440 --> 00:25:33,360
Speaker 2: the break, you asked about whether the interest rates were

500
00:25:33,440 --> 00:25:36,040
Speaker 2: the only risk when it came to investing in an

501
00:25:36,119 --> 00:25:39,120
Speaker 2: ariit and I was like, oh no, Like, I haven't

502
00:25:39,160 --> 00:25:40,640
Speaker 2: done my job if I made you think that that's

503
00:25:40,680 --> 00:25:43,359
Speaker 2: the only risk. And as much as I want to

504
00:25:43,400 --> 00:25:46,240
Speaker 2: be positive, I also am an ex financial advisor. So

505
00:25:46,320 --> 00:25:48,840
Speaker 2: I'm like, let's talk about the risks like risk risk risk.

506
00:25:49,080 --> 00:25:51,440
Speaker 2: Of course, yes, we want rewards, but I also want

507
00:25:51,440 --> 00:25:54,240
Speaker 2: you to be really well educated. So the answer is no.

508
00:25:54,440 --> 00:25:56,960
Speaker 2: And there are a handful of other risks that I

509
00:25:57,040 --> 00:25:58,880
Speaker 2: want to go through, and I've written a little list

510
00:25:59,080 --> 00:26:02,280
Speaker 2: for you so that we don't get too off track, because, like,

511
00:26:02,640 --> 00:26:07,240
Speaker 2: as you know, I was born to yap. So let's

512
00:26:07,280 --> 00:26:10,639
Speaker 2: go through them. And the first one that I've written

513
00:26:10,720 --> 00:26:14,760
Speaker 2: down is sector specific risks. Okay, I wish I had

514
00:26:14,840 --> 00:26:17,200
Speaker 2: given myself a little bit more clarity on that one

515
00:26:17,280 --> 00:26:21,760
Speaker 2: before writing it down. What I believe I meant by that, beg,

516
00:26:22,040 --> 00:26:25,400
Speaker 2: is that not all property sectors performing exactly the same way.

517
00:26:25,680 --> 00:26:29,520
Speaker 2: Like before, we touched on warehouses and data centers booming

518
00:26:29,560 --> 00:26:32,760
Speaker 2: at the moment because of AI infrastructure, uh huh, and

519
00:26:32,960 --> 00:26:37,520
Speaker 2: that I would say pretty new and that's obviously going

520
00:26:37,600 --> 00:26:40,520
Speaker 2: to perform in a very different way. Than us lacing

521
00:26:40,560 --> 00:26:43,359
Speaker 2: out a supermarket, right, because like there's one that I

522
00:26:43,400 --> 00:26:47,040
Speaker 2: would say is a little bit more stable and one

523
00:26:47,119 --> 00:26:51,080
Speaker 2: that's a little bit more topical. So retail ariits, like

524
00:26:51,160 --> 00:26:55,280
Speaker 2: the shopping centers, they can kind of struggle if consumer

525
00:26:55,440 --> 00:26:58,639
Speaker 2: spending is slow or if like online sales have like

526
00:26:58,760 --> 00:27:02,160
Speaker 2: picked up. But like, obviously they're going to be different

527
00:27:03,240 --> 00:27:07,560
Speaker 2: depending on the economics of the world. There are office ariits,

528
00:27:07,600 --> 00:27:11,080
Speaker 2: seeing how I say, sometimes oh, the skyscrapers. They are

529
00:27:11,280 --> 00:27:14,320
Speaker 2: especially sensitive at the moment because there's all this work

530
00:27:14,359 --> 00:27:17,720
Speaker 2: from home conversation going on after COVID, and like there

531
00:27:17,760 --> 00:27:22,000
Speaker 2: has been this conversation recently about legally requiring stuff that

532
00:27:22,280 --> 00:27:24,720
Speaker 2: can to let them work from home for two days

533
00:27:24,760 --> 00:27:27,040
Speaker 2: a week. Love that, yes we do. But do you

534
00:27:27,160 --> 00:27:30,040
Speaker 2: think an ariit that then owns office space is going

535
00:27:30,080 --> 00:27:32,600
Speaker 2: to love that? I see, yes, probably not. It's like

536
00:27:33,040 --> 00:27:36,400
Speaker 2: they make their money from putting bums on desks and yeah,

537
00:27:36,480 --> 00:27:39,359
Speaker 2: does that make sense. Absolutely So at the moment, we

538
00:27:39,560 --> 00:27:44,440
Speaker 2: are seeing really high vacancy rates in CBDs. The next

539
00:27:44,480 --> 00:27:47,520
Speaker 2: thing I wrote down is I believe there's tenant risk.

540
00:27:48,600 --> 00:27:51,199
Speaker 2: So ariit has come with this risk that your tenants

541
00:27:51,280 --> 00:27:54,159
Speaker 2: just don't pay rent on time. Ah, happens true the

542
00:27:54,240 --> 00:27:56,720
Speaker 2: best of us. What if they just decide not to

543
00:27:56,800 --> 00:28:00,200
Speaker 2: pay rent, where's our income come from? So if a

544
00:28:00,240 --> 00:28:03,359
Speaker 2: big tenant like I don't know, a supermarket or like

545
00:28:03,440 --> 00:28:05,720
Speaker 2: you're looking at a Westfield, they lease to places like

546
00:28:05,840 --> 00:28:08,120
Speaker 2: Maya and David Jones, And I mean, I'm just trying

547
00:28:08,160 --> 00:28:10,560
Speaker 2: to contextualize it to give you examples. But what if

548
00:28:10,600 --> 00:28:13,040
Speaker 2: those department stores go, oh, we don't want to have

549
00:28:13,119 --> 00:28:16,800
Speaker 2: a Maya here anymore. It's not very good. And then

550
00:28:16,880 --> 00:28:20,679
Speaker 2: that's an empty space. That's a really big empty space.

551
00:28:20,800 --> 00:28:23,200
Speaker 2: How many other tenants or how many other people would

552
00:28:23,200 --> 00:28:25,679
Speaker 2: go and lease the space that big? So how totally

553
00:28:25,800 --> 00:28:28,080
Speaker 2: is it staying empty? And am Aya, you're going to

554
00:28:28,119 --> 00:28:31,119
Speaker 2: need like four or five different retail shops exactly. And

555
00:28:31,200 --> 00:28:33,760
Speaker 2: then also what about the smaller shops where people maybe

556
00:28:33,800 --> 00:28:36,720
Speaker 2: have opened their small business in one Westfield and taken

557
00:28:36,800 --> 00:28:38,920
Speaker 2: on this lease and then they're not making money so

558
00:28:39,040 --> 00:28:41,440
Speaker 2: they default. So they've got all their stuff in the

559
00:28:41,480 --> 00:28:43,040
Speaker 2: shop and we can't really lease it out to someone

560
00:28:43,080 --> 00:28:44,720
Speaker 2: else yet we have to go through a legal process.

561
00:28:44,760 --> 00:28:48,240
Speaker 2: But they're not paying rent income for that ariait is

562
00:28:48,320 --> 00:28:51,440
Speaker 2: going to drop. And then the next is property valuations.

563
00:28:52,360 --> 00:28:56,080
Speaker 2: So if property price is full, which over time, sometimes

564
00:28:56,120 --> 00:28:59,680
Speaker 2: they fall and sometimes they rise, or valuers decide, oh,

565
00:29:00,000 --> 00:29:01,920
Speaker 2: I think that asset is worth as much like they

566
00:29:02,040 --> 00:29:06,480
Speaker 2: downgrade an asset. The ariit is what's called NTA, so

567
00:29:06,640 --> 00:29:10,360
Speaker 2: a net tangible assets drops, which can then hit the

568
00:29:10,440 --> 00:29:12,840
Speaker 2: unit price as well. So any other risks, yes, I

569
00:29:12,880 --> 00:29:14,840
Speaker 2: have two more. Okay, oh my god, Well I tell

570
00:29:14,840 --> 00:29:16,360
Speaker 2: you that I'm mentally blocking is out because I am

571
00:29:16,440 --> 00:29:18,320
Speaker 2: going to go get an riit after this. Okay, Well,

572
00:29:18,360 --> 00:29:20,760
Speaker 2: I'm trying to sell unit. This is not advice. This

573
00:29:20,960 --> 00:29:24,560
Speaker 2: is just information so you can make your own decision, right, yes, ma'am,

574
00:29:24,560 --> 00:29:26,320
Speaker 2: because I would never give advice because that would be

575
00:29:26,400 --> 00:29:31,200
Speaker 2: against my financial services license. Just to remind everybody, I'm

576
00:29:31,240 --> 00:29:35,720
Speaker 2: a legitimate licensed person to give general financial advice, which

577
00:29:35,920 --> 00:29:39,160
Speaker 2: sounds really fancy. Yeah, it means I can't just raw

578
00:29:39,240 --> 00:29:43,440
Speaker 2: dog content. No license. It's rude. It's rude. Anyway. Two

579
00:29:43,480 --> 00:29:45,160
Speaker 2: more things that I wrote down, and this is not

580
00:29:45,200 --> 00:29:47,480
Speaker 2: going to make sense, but I will tell you dilution

581
00:29:47,640 --> 00:29:51,480
Speaker 2: and capital raisings. I see, I see. So because aris

582
00:29:51,600 --> 00:29:53,800
Speaker 2: have to pay out most of their income by law,

583
00:29:53,960 --> 00:29:57,080
Speaker 2: like that's the rules, they often have to raise more

584
00:29:57,120 --> 00:29:59,400
Speaker 2: money by issuing new units. So if they're like, oh,

585
00:29:59,480 --> 00:30:01,800
Speaker 2: we want to buy new property, like let's say they've

586
00:30:01,800 --> 00:30:03,960
Speaker 2: got a million dollars coming in, but they actually have

587
00:30:04,040 --> 00:30:06,800
Speaker 2: to give most of that to their shareholders. To get

588
00:30:06,920 --> 00:30:08,840
Speaker 2: new property, they need more money coming in the door,

589
00:30:08,880 --> 00:30:11,720
Speaker 2: and it can't really be in income from the properties

590
00:30:11,760 --> 00:30:14,080
Speaker 2: because if it was, they'd have to give it to

591
00:30:14,120 --> 00:30:16,560
Speaker 2: you back if you're going to own an ariit. So

592
00:30:16,680 --> 00:30:20,080
Speaker 2: what they'll do is issue new units. Does that make sense?

593
00:30:20,200 --> 00:30:22,160
Speaker 2: That makes sense? So you're kind of diluting it and

594
00:30:22,280 --> 00:30:26,240
Speaker 2: making it less what it's like watery cordial? Yeah, okay,

595
00:30:27,280 --> 00:30:29,760
Speaker 2: we like cordial. We do like like if we're taking

596
00:30:29,760 --> 00:30:32,960
Speaker 2: a fleet cup crush, I want I don't want to

597
00:30:33,040 --> 00:30:35,640
Speaker 2: follow the instructions on the market. We want it jam

598
00:30:35,880 --> 00:30:38,440
Speaker 2: pack exactly. It's like drinking Milo. How many scoops do

599
00:30:38,520 --> 00:30:40,760
Speaker 2: you follow the tin's rules? I just put a tiny

600
00:30:40,800 --> 00:30:43,640
Speaker 2: bit of milk, Yeah, and mostly myloc it's basically a

601
00:30:43,720 --> 00:30:46,880
Speaker 2: paste exactly, because we're here for the Milo, not the milk.

602
00:30:47,080 --> 00:30:49,880
Speaker 2: Exact milk is just the vehicle to make them Milo

603
00:30:50,040 --> 00:30:52,680
Speaker 2: more enjoyable. Milk you could even go without. So good.

604
00:30:52,720 --> 00:30:54,120
Speaker 2: And then last one because we're going to get back

605
00:30:54,120 --> 00:30:55,640
Speaker 2: on track because I'm pretty sure people are going to

606
00:30:55,680 --> 00:30:58,920
Speaker 2: get pretty bored of me just yapping about aris really quick.

607
00:30:59,760 --> 00:31:02,960
Speaker 2: But the last one I've got is market sentiment. And

608
00:31:04,680 --> 00:31:07,480
Speaker 2: even if the underlying property is a really steady and

609
00:31:07,560 --> 00:31:11,760
Speaker 2: really good and you know, from a logical perspective, we're

610
00:31:11,800 --> 00:31:14,280
Speaker 2: putting out Warren Buffett hat on for a second, we're

611
00:31:14,320 --> 00:31:16,280
Speaker 2: like no, like we're here for the long term. We're

612
00:31:16,320 --> 00:31:19,360
Speaker 2: not here for a short term. Like that's all fine

613
00:31:19,400 --> 00:31:24,080
Speaker 2: and good. Ariit unit prices can kind of swing around

614
00:31:24,240 --> 00:31:26,760
Speaker 2: with the broader share market. So like if people are

615
00:31:26,760 --> 00:31:29,400
Speaker 2: getting anxious and we saw this during the GFC, and

616
00:31:29,480 --> 00:31:33,160
Speaker 2: we saw this during COVID. What happens is if there

617
00:31:33,240 --> 00:31:36,640
Speaker 2: is a downturn, we feel less confident as investors, we

618
00:31:36,760 --> 00:31:40,080
Speaker 2: kind of see what's going on because we're always consistently

619
00:31:40,120 --> 00:31:42,120
Speaker 2: as human beings trying to keep up with the joneses.

620
00:31:42,200 --> 00:31:46,160
Speaker 2: We are really bad at like comparison. So often investors

621
00:31:46,280 --> 00:31:48,760
Speaker 2: sell ariits because they want their cash back and they're

622
00:31:48,800 --> 00:31:51,960
Speaker 2: kind of like, oh, I just need to like be secure.

623
00:31:52,520 --> 00:31:55,240
Speaker 2: That's not how you be secure long term, but okay,

624
00:31:55,680 --> 00:31:59,320
Speaker 2: but this can push prices lower because if everyone's selling. Obviously,

625
00:31:59,360 --> 00:32:03,360
Speaker 2: the markets is not as good. So regardless of how

626
00:32:03,360 --> 00:32:05,960
Speaker 2: good the properties are, regardless of whether they lost a

627
00:32:06,040 --> 00:32:09,320
Speaker 2: tenant or not, the price of the property can drop

628
00:32:09,480 --> 00:32:12,880
Speaker 2: just because people are basically scared. Okay, got you, And

629
00:32:13,000 --> 00:32:15,880
Speaker 2: that's not a bad thing. That's just how the market is.

630
00:32:16,040 --> 00:32:18,880
Speaker 2: And that's where with really good education, you and I

631
00:32:19,040 --> 00:32:21,120
Speaker 2: might go, oh, I see how the market's a bit off,

632
00:32:21,240 --> 00:32:24,280
Speaker 2: but that Ariit hasn't lost a tenant, Like, they're still

633
00:32:24,640 --> 00:32:26,800
Speaker 2: really good at income producing, they're at a bit of

634
00:32:26,840 --> 00:32:29,440
Speaker 2: a discount. That's when a lot of good investors get

635
00:32:29,480 --> 00:32:32,640
Speaker 2: into the market and go oh hello, yeah okay, but again,

636
00:32:32,720 --> 00:32:35,360
Speaker 2: we can't time the market. No, but you know you

637
00:32:35,480 --> 00:32:37,760
Speaker 2: might see a little opportunity and splash a little bit

638
00:32:37,800 --> 00:32:40,920
Speaker 2: more cash. Why not? So how do you know if

639
00:32:41,200 --> 00:32:44,840
Speaker 2: an Ariit is a goodbye? Like if you're evaluating it

640
00:32:44,880 --> 00:32:49,120
Speaker 2: and how you look? Yeah, okay, So it's just like shares. Honestly,

641
00:32:50,160 --> 00:32:53,120
Speaker 2: you don't want to buy into an ariit just blindly,

642
00:32:53,400 --> 00:32:54,840
Speaker 2: like if you just heard a couple of names on

643
00:32:54,920 --> 00:32:56,400
Speaker 2: this podcast and you're like, they must be going to

644
00:32:56,480 --> 00:32:59,480
Speaker 2: just buy it, Like, don't do that. You're better than that.

645
00:33:00,480 --> 00:33:02,480
Speaker 2: Even things I say, need to be taken with a

646
00:33:02,520 --> 00:33:05,959
Speaker 2: grain of salt. There are three big areas I would say,

647
00:33:05,960 --> 00:33:08,280
Speaker 2: I want you to check before you invest. Sure, So

648
00:33:08,880 --> 00:33:11,680
Speaker 2: what are the properties? Beck? What are they? This is

649
00:33:11,760 --> 00:33:14,360
Speaker 2: all about what's inside the portfolio. And you'll find this

650
00:33:14,560 --> 00:33:18,640
Speaker 2: in like the fact sheet or the investor presentations. They'll

651
00:33:18,680 --> 00:33:21,520
Speaker 2: be on their websites, really easy to find. So it'll

652
00:33:21,520 --> 00:33:25,200
Speaker 2: show you, like what's the sector mix? So are they warehouses?

653
00:33:25,240 --> 00:33:27,680
Speaker 2: Are they healthcare? Are they retail? Are they CBD high

654
00:33:27,760 --> 00:33:29,880
Speaker 2: rise officers? Is it cols and woolies? Like, do you

655
00:33:29,960 --> 00:33:34,440
Speaker 2: know what I mean? Yeah? The next is whale. Oh, whales, Yes, whales.

656
00:33:34,520 --> 00:33:36,640
Speaker 2: Can you see whales from the That's what you need

657
00:33:36,680 --> 00:33:38,520
Speaker 2: to be figuring out. Yeah, figure that out. But it's

658
00:33:38,560 --> 00:33:43,440
Speaker 2: actually the weighted average lease expiry weighted average lease expire Okay, yeah,

659
00:33:43,440 --> 00:33:46,120
Speaker 2: but we're looking for the whales. Yeah, gotcha, gotcha. So

660
00:33:46,560 --> 00:33:51,040
Speaker 2: longer leases, steady er incomes. Yes, And instead of being

661
00:33:51,200 --> 00:33:55,000
Speaker 2: like residential properties, commercial properties can sometimes be leased for

662
00:33:55,120 --> 00:33:57,600
Speaker 2: like even ten or twenty years. God, that's good as

663
00:33:57,640 --> 00:33:59,960
Speaker 2: an investor, low key, I love that. Yeah, because you're

664
00:34:00,080 --> 00:34:03,400
Speaker 2: telling me secure income secure we like I want to know.

665
00:34:03,480 --> 00:34:07,080
Speaker 2: I'm going to get paid. Yes, right, and like cosm

666
00:34:07,080 --> 00:34:09,319
Speaker 2: all these aren't going And I'm just using these as

667
00:34:09,360 --> 00:34:11,600
Speaker 2: examples because I think we just get it easier. Like

668
00:34:11,800 --> 00:34:15,560
Speaker 2: I am, if nothing, a visual learner. Oh yeah, I

669
00:34:15,719 --> 00:34:17,680
Speaker 2: was never good at reading the textbook and then being like, oh,

670
00:34:17,719 --> 00:34:20,480
Speaker 2: it makes sense. But if the teacher at the front

671
00:34:20,520 --> 00:34:22,640
Speaker 2: had drawn a diagram, I'd be like, oh, I get

672
00:34:22,680 --> 00:34:25,800
Speaker 2: it immediately, Like that's so good. A completely my best.

673
00:34:26,640 --> 00:34:29,040
Speaker 2: When I was at university, one of my best lecturers,

674
00:34:30,360 --> 00:34:32,319
Speaker 2: her name is evading me right now, and someone's going

675
00:34:32,360 --> 00:34:34,840
Speaker 2: to slide into my DMS and remind me she was

676
00:34:34,920 --> 00:34:38,040
Speaker 2: this little old lady like she definitely could have retired,

677
00:34:38,080 --> 00:34:40,800
Speaker 2: but she clearly was too passionate. And she was my

678
00:34:40,960 --> 00:34:44,360
Speaker 2: financial management lecture when I did my NBA RT, so

679
00:34:44,680 --> 00:34:46,160
Speaker 2: you can slide in and tell me who she was.

680
00:34:46,239 --> 00:34:49,440
Speaker 2: But she would use examples of owning a cupcake shop

681
00:34:50,200 --> 00:34:52,560
Speaker 2: every time we would like talk about some type of

682
00:34:52,680 --> 00:34:56,640
Speaker 2: like very serious like financial management technique. She'd be like, okay,

683
00:34:56,719 --> 00:34:59,359
Speaker 2: so in your cupcake shop, and I'd be like, slay, queen,

684
00:34:59,400 --> 00:35:01,880
Speaker 2: I get it. It's so clever. I feel like I

685
00:35:01,880 --> 00:35:04,000
Speaker 2: would get that tie. Yeah, that's so smart because if

686
00:35:04,000 --> 00:35:06,040
Speaker 2: she's like, okay, cool, Like you know when you're talking

687
00:35:06,040 --> 00:35:08,160
Speaker 2: about your balance sheet, like you obviously have to buy

688
00:35:08,239 --> 00:35:10,480
Speaker 2: flour and eggs, and I'll be like, okay, that makes sense,

689
00:35:11,160 --> 00:35:14,480
Speaker 2: and I'm paying rent like totally anyway. I just try

690
00:35:14,560 --> 00:35:16,759
Speaker 2: to make it make sense, and obviously I'm not very

691
00:35:16,760 --> 00:35:18,080
Speaker 2: good at it because I just told you to look

692
00:35:18,120 --> 00:35:21,040
Speaker 2: out for the whales and that makes no sense. But

693
00:35:22,160 --> 00:35:26,040
Speaker 2: the longer a lease is like coals and wales aren't

694
00:35:26,080 --> 00:35:28,759
Speaker 2: signing a lease for one year, Yeah, they're planning on

695
00:35:28,880 --> 00:35:32,200
Speaker 2: being there kind of forever, I would assume likely groceries

696
00:35:32,200 --> 00:35:35,360
Speaker 2: aren't going anywhere. More often than not, those bigger businesses

697
00:35:35,400 --> 00:35:38,120
Speaker 2: are signing twenty year leases and going, yeah, we want

698
00:35:38,160 --> 00:35:41,400
Speaker 2: that site for twenty years. Yeah, good deal for your income.

699
00:35:41,719 --> 00:35:45,040
Speaker 2: Because shorter leases, when you look at it, actually means

700
00:35:45,080 --> 00:35:48,799
Speaker 2: more risk because there's you know, lots of turnover. There

701
00:35:48,880 --> 00:35:51,760
Speaker 2: might be times where that small business leaves that location

702
00:35:51,960 --> 00:35:54,759
Speaker 2: and there's like empty vacant time where we're finding someone new.

703
00:35:55,440 --> 00:35:57,399
Speaker 2: But on the flip side of that, when there's lots

704
00:35:57,440 --> 00:36:00,960
Speaker 2: of turnover, there's also the potential upside that rents can

705
00:36:01,080 --> 00:36:03,480
Speaker 2: reset and you can kind of like charge the next

706
00:36:03,520 --> 00:36:06,919
Speaker 2: person more, Whereas if you're negotiating a twenty year lease,

707
00:36:07,000 --> 00:36:10,279
Speaker 2: you'll be like, well, yes, i'll pay this price in

708
00:36:10,320 --> 00:36:12,920
Speaker 2: the start, but there's usually an agreed upon percentage that

709
00:36:13,040 --> 00:36:15,839
Speaker 2: that rent increases by it and you can't really go, oh,

710
00:36:15,960 --> 00:36:18,359
Speaker 2: actually the market's doing really well. Instead of two percent,

711
00:36:18,440 --> 00:36:20,479
Speaker 2: we might increase it by four. You can't do that, sure,

712
00:36:20,920 --> 00:36:24,160
Speaker 2: So like pros and cons, And then with looking at

713
00:36:24,160 --> 00:36:27,440
Speaker 2: properties as well, I've mentioned it a few times occupancy,

714
00:36:28,000 --> 00:36:31,880
Speaker 2: So are there people actually leasing these properties back? Ideally

715
00:36:32,320 --> 00:36:36,200
Speaker 2: ninety five percent of their properties are tenanted and lease

716
00:36:36,360 --> 00:36:39,040
Speaker 2: out lower than that. I just feel like you could

717
00:36:39,080 --> 00:36:41,560
Speaker 2: be getting some poutchy income. Yeah, that makes sense, That

718
00:36:41,680 --> 00:36:43,480
Speaker 2: makes a lot of sense. And when they're big like

719
00:36:43,800 --> 00:36:46,960
Speaker 2: five percent of not leased out, thus red flag material

720
00:36:47,040 --> 00:36:49,440
Speaker 2: to me. Oh yeah, like what's going on there? The

721
00:36:49,560 --> 00:36:53,200
Speaker 2: next thing, let's talk about money. Okay, sorry, this is

722
00:36:53,239 --> 00:36:56,120
Speaker 2: where we have to zoom out and boring, but I'll

723
00:36:56,160 --> 00:36:58,320
Speaker 2: do it for you. I won't actually do it for you,

724
00:36:58,440 --> 00:37:00,680
Speaker 2: but like, think of me while you're reading the financial

725
00:37:00,719 --> 00:37:05,240
Speaker 2: results and annual reports, because that's where I get very excited.

726
00:37:05,640 --> 00:37:08,200
Speaker 2: I want you to talk about gearing. So like this

727
00:37:08,360 --> 00:37:11,520
Speaker 2: is just talking about their debt levels. So moderate gearing

728
00:37:11,640 --> 00:37:14,960
Speaker 2: is pretty healthy, and that's where they're gearing. Or the

729
00:37:15,120 --> 00:37:18,040
Speaker 2: debt that that company holds is between twenty to thirty

730
00:37:18,080 --> 00:37:20,840
Speaker 2: five percent, it's pretty normal. I would say that's a

731
00:37:20,920 --> 00:37:23,680
Speaker 2: healthy middle ground. I don't know what gearing. So it's

732
00:37:23,800 --> 00:37:26,000
Speaker 2: just basically the percentage of debt you hold to the

733
00:37:26,080 --> 00:37:28,560
Speaker 2: income that you have. I see. So, like, you know,

734
00:37:28,920 --> 00:37:31,280
Speaker 2: if you're drowning in debt, beck and ninety five percent

735
00:37:31,320 --> 00:37:33,640
Speaker 2: of your income is going to paying off your debt,

736
00:37:34,200 --> 00:37:37,080
Speaker 2: you're probably struggling, got you? But if I said, oh,

737
00:37:37,320 --> 00:37:39,120
Speaker 2: thirty percent of your income is going to like your

738
00:37:39,160 --> 00:37:42,080
Speaker 2: mortgage repayment or thirty percent of your incomes going to debt, Like,

739
00:37:42,360 --> 00:37:44,640
Speaker 2: that's not so bad, is your? Yeah, Like that's a

740
00:37:44,680 --> 00:37:47,520
Speaker 2: bit more comfy. Absolutely, So when I talk about gearing,

741
00:37:48,040 --> 00:37:51,160
Speaker 2: moderate gearing in these companies, I'm happy to see twenty

742
00:37:51,200 --> 00:37:53,920
Speaker 2: to thirty five percent. So the rest of the income

743
00:37:53,960 --> 00:37:56,640
Speaker 2: that's coming in, like, isn't paying off debt. It's going

744
00:37:56,719 --> 00:37:59,640
Speaker 2: to you, the investor. That's what we want to see.

745
00:38:00,360 --> 00:38:04,240
Speaker 2: And then NTAs not the asshole. No, no, it's actually

746
00:38:04,280 --> 00:38:07,680
Speaker 2: a net tangible asset price. And we're gonna look at

747
00:38:07,719 --> 00:38:11,040
Speaker 2: those so I want you to compare what the ariit

748
00:38:11,520 --> 00:38:14,440
Speaker 2: is trading at to the underlying value of the property.

749
00:38:15,400 --> 00:38:18,279
Speaker 2: So paying a big premium, I would say, is really

750
00:38:18,360 --> 00:38:21,440
Speaker 2: risky if the growth isn't showing up, Like, don't overpay

751
00:38:22,000 --> 00:38:25,680
Speaker 2: just don't overpay back Yeah for nothing if you can

752
00:38:26,120 --> 00:38:28,160
Speaker 2: help it, if you can help it. But also we

753
00:38:28,200 --> 00:38:30,439
Speaker 2: can help it by doing our research. Yes, so true.

754
00:38:30,760 --> 00:38:33,239
Speaker 2: And then the last thing that I would say is

755
00:38:33,320 --> 00:38:36,680
Speaker 2: the people. The people we're gonta have good people. Well, yeah,

756
00:38:36,719 --> 00:38:40,279
Speaker 2: you do. Good people make a good business. And it's's toxic, no,

757
00:38:41,080 --> 00:38:43,720
Speaker 2: I mean you can't tell that from the outside. But finally,

758
00:38:43,800 --> 00:38:46,000
Speaker 2: I want you to have a look at who's in charge. Like,

759
00:38:46,120 --> 00:38:50,239
Speaker 2: if you're looking at an ariit, who's managing it? Like,

760
00:38:50,560 --> 00:38:53,480
Speaker 2: is it some trust fund kids who just got a

761
00:38:53,600 --> 00:38:56,360
Speaker 2: really big amount of money and like mummy and daddy

762
00:38:56,440 --> 00:38:59,160
Speaker 2: let them buy some stuff that doesn't happen often. But like,

763
00:38:59,280 --> 00:39:02,040
Speaker 2: obviously that me would be a pretty red flag. But

764
00:39:02,239 --> 00:39:04,839
Speaker 2: like I want to see that there's an experienced team

765
00:39:04,840 --> 00:39:06,800
Speaker 2: who've been doing this for a number of years. I

766
00:39:06,880 --> 00:39:10,200
Speaker 2: want to see a history of really stable distribution so

767
00:39:10,360 --> 00:39:13,000
Speaker 2: that the people who own the ariat we get paid

768
00:39:13,040 --> 00:39:17,920
Speaker 2: and we get paid consistently, and ideally their internal management

769
00:39:18,200 --> 00:39:21,360
Speaker 2: exists so that their interests are aligned with the investors.

770
00:39:21,440 --> 00:39:23,840
Speaker 2: They haven't just been brought in from different sectors. Like

771
00:39:24,080 --> 00:39:26,759
Speaker 2: I'm want property people managing my property. Yeah. I don't

772
00:39:26,800 --> 00:39:28,560
Speaker 2: know about you, but I read a book and you

773
00:39:28,680 --> 00:39:31,040
Speaker 2: definitely didn't. But it's called The Richest Man in Babylon.

774
00:39:31,880 --> 00:39:33,320
Speaker 2: Not because you didn't read a book. Go, I know

775
00:39:33,400 --> 00:39:35,480
Speaker 2: you read books, but like, you didn't read The Richest

776
00:39:35,520 --> 00:39:37,759
Speaker 2: Man in recent But I will tell you that that's

777
00:39:37,800 --> 00:39:40,920
Speaker 2: a fantastic investing read. In fact, it's one of the

778
00:39:41,000 --> 00:39:42,600
Speaker 2: first books I want you to pick up if you're

779
00:39:42,640 --> 00:39:47,520
Speaker 2: going to start investing to understand just investing methodology and

780
00:39:47,560 --> 00:39:50,400
Speaker 2: where it's come from and how it works. But I

781
00:39:50,440 --> 00:39:53,040
Speaker 2: will warn you it's the most boring book you'll ever read. God,

782
00:39:53,120 --> 00:39:56,239
Speaker 2: I can't imagine. She's so dry. Oh, she's so dry.

783
00:39:56,320 --> 00:39:59,680
Speaker 2: But she talks about like marketplaces I see way back

784
00:39:59,760 --> 00:40:04,239
Speaker 2: where gorgeous. Anyway, I can give you the TLDR on that,

785
00:40:04,320 --> 00:40:05,920
Speaker 2: so you don't have to read it. But one of

786
00:40:06,000 --> 00:40:08,239
Speaker 2: the top tips in there is they say do not

787
00:40:08,560 --> 00:40:13,160
Speaker 2: take advice on buying diamonds from a bricklayer. Ah, that

788
00:40:13,320 --> 00:40:15,799
Speaker 2: makes sense, right, So, like a bricklayer might be really

789
00:40:15,840 --> 00:40:18,239
Speaker 2: passionate about diamonds because like one time he bought his

790
00:40:18,400 --> 00:40:21,160
Speaker 2: girlfriend and engagement ring, but that doesn't mean he knows

791
00:40:21,200 --> 00:40:23,359
Speaker 2: everything about diamonds. I'm probably if I'm going to buy

792
00:40:23,400 --> 00:40:25,360
Speaker 2: a diamond that's a really big expense, I'm going to

793
00:40:25,400 --> 00:40:27,400
Speaker 2: go to a diamond expert. I'm not going to go

794
00:40:27,480 --> 00:40:28,160
Speaker 2: to the bricklayer.

795
00:40:28,400 --> 00:40:28,600
Speaker 3: Yeah.

796
00:40:28,840 --> 00:40:30,800
Speaker 2: So I think it's about getting your advice from the

797
00:40:30,920 --> 00:40:33,759
Speaker 2: right places. And I would say there's been instances of

798
00:40:33,880 --> 00:40:38,359
Speaker 2: external management of some Australian ETFs that prioritize fees over

799
00:40:38,880 --> 00:40:42,640
Speaker 2: holders income. So I just want the right people doing

800
00:40:42,719 --> 00:40:46,040
Speaker 2: the right thing. And does a management look like they

801
00:40:46,120 --> 00:40:49,160
Speaker 2: know what they're doing. So I guess for real estate ETFs,

802
00:40:49,280 --> 00:40:51,360
Speaker 2: like just to summarize it, or one of the benefits

803
00:40:51,480 --> 00:40:53,600
Speaker 2: of a property ETF is that you just don't need

804
00:40:53,680 --> 00:40:55,760
Speaker 2: to do a deep dive into every single landlord.

805
00:40:55,840 --> 00:40:56,000
Speaker 3: You know.

806
00:40:56,120 --> 00:40:57,640
Speaker 2: I was like, look at their management team, do this,

807
00:40:57,800 --> 00:41:00,440
Speaker 2: do that? Like, if you're buying an ETF, you basically

808
00:41:00,840 --> 00:41:02,879
Speaker 2: don't have to worry as much because all the hard

809
00:41:02,920 --> 00:41:05,480
Speaker 2: work's been done by you by the ETF manager, they

810
00:41:05,520 --> 00:41:07,600
Speaker 2: wouldn't have been putting it into the ETF, it was

811
00:41:07,920 --> 00:41:10,839
Speaker 2: if it was terrible, beck, because like their whole job

812
00:41:10,960 --> 00:41:13,200
Speaker 2: is to make an ETF that performs. I promise you

813
00:41:13,400 --> 00:41:16,000
Speaker 2: they have gone through every single one and been like good, bad, No,

814
00:41:16,520 --> 00:41:18,239
Speaker 2: you don't make it to the ETF. That's what you want,

815
00:41:18,400 --> 00:41:20,799
Speaker 2: Like they're the gatekeepers. But I would say that if

816
00:41:20,840 --> 00:41:22,880
Speaker 2: you're looking at a property ETF, you still need to

817
00:41:22,920 --> 00:41:24,719
Speaker 2: look at the fact sheet because we still need to

818
00:41:24,800 --> 00:41:27,440
Speaker 2: know what we're buying. Yeah, I want you to know

819
00:41:27,719 --> 00:41:29,920
Speaker 2: what sector are you buying into? Does it tilt one

820
00:41:29,920 --> 00:41:31,960
Speaker 2: way or the other? Like is it really healthcare? Is

821
00:41:32,000 --> 00:41:35,280
Speaker 2: it really supermarkets? You know, what are the top holdings

822
00:41:35,400 --> 00:41:36,880
Speaker 2: and do they kind of make sense to you? So

823
00:41:36,960 --> 00:41:38,480
Speaker 2: you don't need to look into the top one hundred

824
00:41:38,600 --> 00:41:42,040
Speaker 2: that's okay? What are like the top five right when

825
00:41:42,080 --> 00:41:44,480
Speaker 2: you google them? And when you look at those companies,

826
00:41:44,560 --> 00:41:47,440
Speaker 2: are you like, okay, that makes sense? Holdings are so

827
00:41:47,600 --> 00:41:50,200
Speaker 2: that the companies or the assets that they own, So

828
00:41:50,280 --> 00:41:52,400
Speaker 2: like in your ETF, it's a basket of shares, and

829
00:41:52,480 --> 00:41:54,640
Speaker 2: then inside that, I just want you to know, like

830
00:41:54,719 --> 00:41:56,680
Speaker 2: the top five. I just want you to google. Guys

831
00:41:56,760 --> 00:41:58,480
Speaker 2: might be like willl words calls came out yeah, and

832
00:41:58,520 --> 00:42:00,560
Speaker 2: I want you to be like, yeah, check that makes sense.

833
00:42:01,360 --> 00:42:03,160
Speaker 2: See how much is it going to cost you? So

834
00:42:03,239 --> 00:42:05,200
Speaker 2: what are the fees? And then what does performance over

835
00:42:05,280 --> 00:42:09,279
Speaker 2: the long term look like? Again, ex financial advisor in

836
00:42:09,360 --> 00:42:11,680
Speaker 2: me is like flashing red lights. And I need to

837
00:42:11,760 --> 00:42:15,080
Speaker 2: say past performance is not a reliable predictor of future performance,

838
00:42:15,440 --> 00:42:18,040
Speaker 2: but it can make you feel secure. Yeah, absolutely can

839
00:42:18,120 --> 00:42:19,880
Speaker 2: make you go, oh, they've been doing a pretty good

840
00:42:19,960 --> 00:42:24,239
Speaker 2: job for a pretty long time. The risk is less. Yes, yes,

841
00:42:24,760 --> 00:42:26,920
Speaker 2: So that's a pretty good checklist. Actually, so I made

842
00:42:26,960 --> 00:42:29,799
Speaker 2: it up myself and honestly, god, you're so smart. Well

843
00:42:29,800 --> 00:42:31,399
Speaker 2: I'm not. Actually, I just had to write a list

844
00:42:31,440 --> 00:42:32,880
Speaker 2: and I was like, oh, it's all about the money.

845
00:42:33,040 --> 00:42:36,879
Speaker 2: Other people safe, what are they doing? I'm so god,

846
00:42:36,960 --> 00:42:39,600
Speaker 2: she's good. I'm just so critical. I'm so sorry. No,

847
00:42:39,760 --> 00:42:41,759
Speaker 2: someone's going to be I'll do it for you. It

848
00:42:41,840 --> 00:42:44,800
Speaker 2: doesn't sound as scary as I thought, like kind of

849
00:42:44,840 --> 00:42:48,000
Speaker 2: like GNALT is literally you're already kind of investing. So

850
00:42:48,200 --> 00:42:50,120
Speaker 2: if real estate is something that you want to dabble in,

851
00:42:50,200 --> 00:42:52,279
Speaker 2: this might be something that you look into. I think

852
00:42:52,360 --> 00:42:54,879
Speaker 2: I actually might, But I think like if I add

853
00:42:54,880 --> 00:42:58,000
Speaker 2: property to my shares's account. The ETFs are more my style.

854
00:42:58,360 --> 00:43:01,880
Speaker 2: So that's great advice. I just want you to have

855
00:43:02,200 --> 00:43:04,759
Speaker 2: a portfolio that kind of makes sense to you. Yeah,

856
00:43:05,000 --> 00:43:07,160
Speaker 2: Like I use the example of going down to the pub, Like,

857
00:43:07,280 --> 00:43:09,880
Speaker 2: I want you to have these conversations, like it's not

858
00:43:10,040 --> 00:43:12,759
Speaker 2: just men who talk about their shares, like and it

859
00:43:12,960 --> 00:43:16,360
Speaker 2: historically was because they're basically trying to one up each other. Yeah, Like,

860
00:43:16,400 --> 00:43:17,520
Speaker 2: I want you to be like, oh my god, I

861
00:43:17,600 --> 00:43:20,280
Speaker 2: found this arit and it's like full of healthcare companies

862
00:43:20,280 --> 00:43:23,200
Speaker 2: and I really believe in that, Like isn't that cool. Yeah,

863
00:43:23,640 --> 00:43:25,600
Speaker 2: we have the power to do that. We love a

864
00:43:25,640 --> 00:43:28,799
Speaker 2: ETF as well because they're just so simple and so diversified.

865
00:43:29,160 --> 00:43:31,960
Speaker 2: God gorgeous. Okay, So before today, I didn't think I

866
00:43:32,000 --> 00:43:34,000
Speaker 2: would ever be property invester, but and I'm sure a

867
00:43:34,040 --> 00:43:35,880
Speaker 2: lot of people listening maybe think the same thing. But

868
00:43:36,200 --> 00:43:38,960
Speaker 2: guess what, guys, we can do it. You absolutely can

869
00:43:39,040 --> 00:43:41,640
Speaker 2: do it. And at the end of the day, ariits

870
00:43:41,719 --> 00:43:44,560
Speaker 2: and property ETFs, they're just another tool in your little

871
00:43:44,640 --> 00:43:47,080
Speaker 2: investing kit. The beauty is that you can kind of

872
00:43:47,160 --> 00:43:49,960
Speaker 2: dip your toe in without committing all of your life savings,

873
00:43:50,000 --> 00:43:52,680
Speaker 2: which can be terrifying. And the best bit is I

874
00:43:52,719 --> 00:43:55,560
Speaker 2: would say, you don't have any tenants calling about broken

875
00:43:55,600 --> 00:43:58,200
Speaker 2: hot water systems. Oh my god, that's gorgeous.

876
00:43:58,440 --> 00:43:58,800
Speaker 1: I know.

877
00:43:59,040 --> 00:44:01,800
Speaker 2: So we'll see you on the guys. Bye, my guys.

878
00:44:08,160 --> 00:44:10,680
Speaker 3: The advice shared on She's on the Money is general

879
00:44:10,760 --> 00:44:14,600
Speaker 3: in nature and does not consider your individual circumstances. She's

880
00:44:14,680 --> 00:44:18,080
Speaker 3: on the Money exists purely for educational purposes and should

881
00:44:18,160 --> 00:44:21,320
Speaker 3: not be relied upon to make an investment or financial decision.

882
00:44:21,680 --> 00:44:23,880
Speaker 2: If you do choose to buy a financial.

883
00:44:23,520 --> 00:44:27,440
Speaker 3: Product, read the PDS TMD and obtain appropriate financial advice

884
00:44:27,560 --> 00:44:31,120
Speaker 3: tailored towards your needs. Victoria Divine and She's on the

885
00:44:31,160 --> 00:44:33,640
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886
00:44:33,680 --> 00:44:35,280
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887
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