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

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

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Speaker 2: millennials who want financial freedom. Part four of our investing

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Speaker 2: series is here, and today it is time to.

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Speaker 3: Talk investment properly.

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Speaker 2: Investment correct. My name is Georgia King. I'm a copywriter

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Speaker 2: and journalism student, and joining me as always is Financial

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Speaker 2: Advisor Extraordinary.

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Speaker 3: Every single time I've got to be Hello Georgia King.

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Speaker 2: Hello.

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Speaker 3: People don't like me using your whole name, but that's Savage, Savage,

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Speaker 3: it's a good name. I'm not calling you.

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Speaker 2: Victoria deviand but also Vickig veg p.

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Speaker 3: Just for those playing along with it home, this isn't

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Speaker 3: just for the podcast. We actually call each other this

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Speaker 3: in real life.

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Speaker 2: Yeah, that's the thing.

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Speaker 3: I just think that people think company it on for

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Speaker 3: the show and it's actually not how we roll like.

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Speaker 3: We actually interact like this. I'm sorry if that disappoints anybody,

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Speaker 3: and they think that we're actually as socially awkward as

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Speaker 3: we come across as one fine real life. Yeah we're fine,

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Speaker 3: but all right, carry on. Okay.

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Speaker 2: So with all of that said, they talk us through

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Speaker 2: what is ahead on today's episode of the show.

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Speaker 3: Okay, so we have had so many questions in the

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Speaker 3: Facebook community about property investing this week, which is no

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Speaker 3: surprise because we kind of ask them to ask us

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Speaker 3: the questions about property investing, and obviously it is a

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Speaker 3: huge topic. But by the end of today's episode, we

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Speaker 3: are going to all have a clear idea about we're

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Speaker 3: property ranks within the investment space, and you'll know whether

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Speaker 3: or not property is the right move for you moving forward.

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Speaker 3: Also have a few thoughts to share with you guys

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Speaker 3: about investing in properties versus shares, so I'll absolutely make

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Speaker 3: those pretty well known as well.

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Speaker 2: I've got a feeling I already know what you can

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Speaker 2: say there VB, but you don't though you don't know alrighty,

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Speaker 2: So let's get into it. What is property investing V

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Speaker 2: what's the return like and how does it compare to

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Speaker 2: other forms of investing.

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Speaker 3: Okay, let's just dive straight in and say that property

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Speaker 3: investment actually comes in many, many different forms. A lot

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Speaker 3: of people might say that the home you buy is

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Speaker 3: an investment, but I've said it on the podcast a

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Speaker 3: million times. It's overly dramatic, but that is totally okay

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Speaker 3: that it's not. But you also might buy property purely

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Speaker 3: as an investment, have tenants in it. You also might

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Speaker 3: purchase property to flip and buy a bomb and then

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Speaker 3: renovate it, sell it at a high price point. Very

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Speaker 3: sexy in the Instagram world at the moment, maybe just

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Speaker 3: from me because I like following those Instagram accounts. But

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Speaker 3: you might also buy a block of land or a

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Speaker 3: house and just sit on it for a few years,

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Speaker 3: sell it when it's increased in value. You can also

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Speaker 3: purchase property inside the shere market by going down the

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Speaker 3: commercial property route and purchasing shares that give you exposure

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Speaker 3: to commercial property. But we're not going to talk about

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Speaker 3: that here, but I do want you to know that

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Speaker 3: that is an option as well. So if maybe you

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Speaker 3: don't have a heap of money, but you're like Victoria,

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Speaker 3: but I love property and I really want my money

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Speaker 3: to be exposed to that, but you also just don't

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Speaker 3: want the commitment, you could actually purchase shares that expose

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Speaker 3: you to that asset class. So kind of cool, but

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Speaker 3: we're not going to talk about that today. So there

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Speaker 3: are so so many different ways to invest in property

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Speaker 3: and that's kind of exciting. Now. The biggest benefit which

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Speaker 3: we are going to talk about in more detail. And

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Speaker 3: this is entirely my own opinion, but I've got a

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Speaker 3: really high regard for my own opinion at this own

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Speaker 3: in time, so do I yeah, thank you. No, it's

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Speaker 3: actually so that we create a passive income, and that

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Speaker 3: is very very cool. It's about having an asset that

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Speaker 3: is going to pay us in the future so that

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Speaker 3: we don't have to work so for us. If we

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Speaker 3: have tenants who are paying us rent and the capital

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Speaker 3: growth of that asset, so the increase in value great

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Speaker 3: over the long term. We have an asset that's worth more,

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Speaker 3: but we've actually got an income stream of that tenant

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Speaker 3: paying us money each and every single week after that

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Speaker 3: property is completely paid off and you don't have any

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Speaker 3: mortgage on it.

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Speaker 2: So it's like a double whammy, yes.

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Speaker 3: Because you could always sell that property and obviously make

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Speaker 3: a capital gain, which is where you profit off a

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Speaker 3: base level of capital. So maybe the property when you

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Speaker 3: purchased it was worth three hundred thousand dollars, and then

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Speaker 3: over time it's now worth five hundred thousand dollars, your

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Speaker 3: capital gain would be two hundred thousand dollars, which I

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Speaker 3: think is pretty cool. But the question there is do

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Speaker 3: I actually sell that or is the fact that I've

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Speaker 3: got a tenant in that property paying me four hundred

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Speaker 3: dollars a week better for me long term than actually

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Speaker 3: just having two hundred grod in my pocket right now,

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Speaker 3: which I would arguably have to pay tax on.

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Speaker 2: Yeah, right, and also the capital growth could grow further.

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Speaker 3: I guess yeah, absolutely absolutely. And it's one of those

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Speaker 3: things where I've said this on the podcast before where

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Speaker 3: my favorite types of assets are the ones that produce

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Speaker 3: income but also increase in value over time, so you

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Speaker 3: can actually have exposure to that type of asset. Within

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Speaker 3: the property world as well well. We always talk about

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Speaker 3: things like the Australian dream and everybody wants to buy

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Speaker 3: property and whatnot. But I'm just going to put that

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Speaker 3: to the side. I think something that is really attractive,

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Speaker 3: especially to younger people, is that property is tangible. You

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Speaker 3: can touch it, you can taste it, you can have

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Speaker 3: a pizza on the front lawn of the property, you

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Speaker 3: can drive past it, you can point at it. You

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Speaker 3: can't do the same thing with a share portfolio. It's

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Speaker 3: not nearly as attractive, and it's just not as exciting.

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Speaker 3: Let's be brutally honest. But at the end of the day,

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Speaker 3: I think that's why people see it as a very

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Speaker 3: attractive asset, because they feel quite safe with that because

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Speaker 3: they can see it in front of them, and property

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Speaker 3: in general is not considered as risky as the share market,

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Speaker 3: So the return most people go by is around ten percent.

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Speaker 3: But I'm going to preface that and say that I

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Speaker 3: don't think that that will continue. That is absolutely personal opinion.

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Speaker 3: It is not advice. But I cannot personally see how

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Speaker 3: the increase in the property market is going to be

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Speaker 3: sustained over the long term based on the historical growth.

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Speaker 2: That's the thing, because I was talking to my dad

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Speaker 2: about this the other day. How would you ever get

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Speaker 2: into the market if it goes up ten percent every year?

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Speaker 3: Yeah? Exactly, Yeah, I.

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Speaker 2: Just can't accompany.

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Speaker 3: And we've all seen those properties online where people have

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Speaker 3: flipped them, made a million dollars and all of that.

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Speaker 3: Please don't get me wrong. We've also seen all the

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Speaker 3: clickbaite articles where people are saying things like, oh my gosh,

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Speaker 3: I bought my fiftieth property by my twenty ninth birthday.

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Speaker 3: And to be honest, what you don't see is how

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Speaker 3: much debt they're carrying to be able to afford that,

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Speaker 3: And I think you need to really bring it back

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Speaker 3: down to earth and go, well, what does an investment

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Speaker 3: property mean for me? How does that work? As much

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Speaker 3: as the very attractive return exists, what people don't understand

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Speaker 3: when it comes to return is that's just a great

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Speaker 3: looking return. Does property return? Yes? Absolutely, they haven't taken

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Speaker 3: into consideration the costs that you incur along that journey

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Speaker 3: to maintain that property. They haven't talked about water or

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Speaker 3: about rates. They haven't spoken about the hot water system

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Speaker 3: that broke that you had to reinstall, or that ski

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Speaker 3: tenant that keeps calling saying that the air condition is

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Speaker 3: broken and it's their fault. So I think it's really

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Speaker 3: really important to consider that. If you invest in property,

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Speaker 3: but then you spend fifty thousand dollars on it and

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Speaker 3: then you sell it for one hundred thousand dollars more

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Speaker 3: than you purchased step for you didn't actually make one

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Speaker 3: hundred thousand dollars on their property. You might have made fifty,

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Speaker 3: but then you'd have to play capital gains taxes. And

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Speaker 3: I just think that there's a lot to it that

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Speaker 3: people don't take into consideration. And I think that a

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Speaker 3: lot of us and Georgie you might have experienced this before.

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Speaker 3: People don't tell you how much a cost to renovate

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Speaker 3: theirs or change things, or you know, what costs they incurred.

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Speaker 3: They'll be like, oh, George bought that house in nineteen

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Speaker 3: ninety two for thirty thousand dollars and then sold it

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Speaker 3: in you know, twenty twelve for you know, eight hundred

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Speaker 3: and you go, wow, that's pretty good. How much you

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Speaker 3: spend on that? Nobody asks that for question, So I

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Speaker 3: think it's really important to take that into consideration when

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Speaker 3: we talk about return on a property as well. That's

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Speaker 3: the end of my rant.

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Speaker 2: I liked that. Well, that kind of leads into my

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Speaker 2: next question, which is what we need to be considering

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Speaker 2: when buying an investment property. But before I do ask

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Speaker 2: you that, I just wanted to quickly let everyone know

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Speaker 2: that we do have the property playbook coming.

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Speaker 3: Would thank you for plasing to see.

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Speaker 2: Of home buying. So this chat today isn't about how

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Speaker 2: to buy a home. No, I think a few people

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Speaker 2: might be thinking that, but it's more a chat about

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Speaker 2: investment properties.

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Speaker 3: Yeah, and what that asset class is so that you

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Speaker 3: can properly understand it as an asset, and that actually

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Speaker 3: helps me a lot. Georgia in answering the question that

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Speaker 3: you just asked me, and that is what do we

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Speaker 3: need to consider? And the first thing is what your

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Speaker 3: purpose is. Are you purchasing an investment property or are

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Speaker 3: you purchasing a future home? Those true things are really different.

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Speaker 3: If we are purchasing an investment property, I think people

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Speaker 3: get really tangled up in their emotions. They starting Wow,

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Speaker 3: that's so pretty. I'd love to own that apartment in

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Speaker 3: that location. Once you've decided that your future investment property

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Speaker 3: is going to be just that an investment, you need

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Speaker 3: to look at it pragmatically. You need to say, okay, cool,

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Speaker 3: what are the key features I need to be purchasing.

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Speaker 3: What does this look like. It's not about how pretty

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Speaker 3: it is. It's not about any of that. I mean,

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Speaker 3: it kind of helps sometimes, but it's also, you know,

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Speaker 3: mainly just aesthetics. But at the end of the day,

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Speaker 3: if you are in a position where you're considering investment property,

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Speaker 3: we're not buying a dream home. We're not buying something

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Speaker 3: really attractive. We are purchasing a property with the expectation

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Speaker 3: that it will increase in value and we'd get some

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Speaker 3: capital growth, and we'd also be able to create an

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Speaker 3: income stream and be in a position where we have

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Speaker 3: a tenant paying a mortgage. That's what we're looking for.

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Speaker 3: It's not about what the property is. We then go

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Speaker 3: into budget and what that looks like and how that works.

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Speaker 3: Whereas georgo. If you said, well, I want to buy

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Speaker 3: my first home, or I want to buy a property

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Speaker 3: that will be an investment, then i'll live in it,

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Speaker 3: that's a different store.

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Speaker 2: Yeah, so that's not what we're talking That is.

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Speaker 3: Not what we're talking about. So for me, it's separating

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Speaker 3: your emotions from what you want versus what you need

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Speaker 3: at the very beginning and the we want to do

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Speaker 3: our research. We want to understand what we're buying. And

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Speaker 3: I think that this is something that so many people

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Speaker 3: don't consider when it comes to investment properties. They'll say, yeah,

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Speaker 3: but it's really beautiful and it's in a really great location, fantastic.

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Speaker 3: Would you say the same thing about shares or would

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Speaker 3: you tell me that you chose that share or that

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Speaker 3: ETF or that managed fund because it's got good track

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Speaker 3: record and proof and it's made up of well diversified asset,

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Speaker 3: like you'd have a solid reason. No one looks at

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Speaker 3: a share on the share market says it's just really

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Speaker 3: pretty and it's in a good location, And yeah, no

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Speaker 3: one says that. But we're so much more emotional about property,

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Speaker 3: So we need to strip that away, and when we're

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Speaker 3: doing our research, go, okay, cool, what do we need

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Speaker 3: to consider? Do we need to work out where we're

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Speaker 3: buying and what that location looks like. Do you understand

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Speaker 3: if you're buying in a city and there's a development

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Speaker 3: going to go up in the next twelve months next

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Speaker 3: door to you that's going to decrease the value of

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Speaker 3: your current property, are you aware of it? And have

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Speaker 3: you done your research? Do you know what property is

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Speaker 3: planned around to the outside of that property that you're

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Speaker 3: going to purchase. If you don't, you need to do

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Speaker 3: some more research. So for me, it is really really

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Speaker 3: important when it comes to purchasing property. We're not talking

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Speaker 3: about first homes here, and this is really important for

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Speaker 3: me to preface because I think that a lot of

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Speaker 3: people will be like, oh, but Victoria said X on

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Speaker 3: this podcast about property, I'm not talking about your home,

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Speaker 3: I'm not talking about your first home talking about a

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Speaker 3: property that you do not have any intention of living

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Speaker 3: in at any point. You need to identify areas that

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Speaker 3: are high growth and high yield. The more that you

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Speaker 3: can charge for rent, obviously, the more of an income

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Speaker 3: that you're going to be taking home. Plus you probably

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Speaker 3: should be considering any plans that are in the works

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Speaker 3: as I said just before, that could impact the property

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Speaker 3: purchase price. Now this goes the other way as well.

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Speaker 3: Might not be a high density apartment complex going up

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Speaker 3: near you. Might be a train line that's actually going

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Speaker 3: to increase the value of the property you're purchasing because

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Speaker 3: it's just become more accessible. Yes, school, so you're in

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Speaker 3: a great school zone. Now, might be a hospital which

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Speaker 3: would increase infrastructure in your area. There are so many

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Speaker 3: different things could impact the property price that you have.

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Speaker 3: So generally suburbs that are closer to the city are

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Speaker 3: more expensive to buy in, and also coastal suburbs are

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Speaker 3: as well because life style aesthetic. But the further you

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Speaker 3: go often you'll find greater affordability. But with that comes

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Speaker 3: compromise because obviously the further out you are, the less

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Speaker 3: you can charge for rent. The further out you are,

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Speaker 3: the harder it is to get to work if someone

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Speaker 3: works in the city, et cetera, so on and so forth.

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Speaker 2: Do you see that changing with the whole COVID situation.

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Speaker 2: Obviously a lot of people are making them move to

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Speaker 2: the coast and they're like, I'll work from home three days,

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Speaker 2: go into the office two days, so then they don't

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Speaker 2: need to live it like close to the cbit anymore.

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Speaker 2: Is that going to have an impact on where we

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Speaker 2: should be buying property.

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Speaker 3: It can, it's not. It's not something that I would

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Speaker 3: bet on for the long term. With COVID. We've obviously

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Speaker 3: been you know, granted this ability to be more flexible

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Speaker 3: in our workplaces, and we're seeing that already being reflective

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Speaker 3: in the price of property. So I know where you

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Speaker 3: and I from Georgia, on the Peninsula, property prices are

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Speaker 3: significantly increasing because people want to live down the peninsula

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Speaker 3: now because they can same thing is happening in really

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Speaker 3: beautiful regional towns, So it's definitely worth looking into. But

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Speaker 3: you can see what is going on. I think for me,

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Speaker 3: it's just about understanding what you're buying, why you're buying,

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Speaker 3: and what return you're expecting. It's actually not about well,

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Speaker 3: it's a really pretty location. Like I just get so

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Speaker 3: frustrated when people tell me that when they're looking for property,

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Speaker 3: because that is not the priority when we are actually

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Speaker 3: investing our money. If you're investing, the purpose is to

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Speaker 3: get a return.

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Speaker 2: Okay, So from that investment perspective, then what would you

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Speaker 2: say the benefit of buying an apartment versus a house

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Speaker 2: is which one's better? Because often people would say, go

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Speaker 2: with the house. Talk us through that.

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Speaker 3: So most people are going to say buying a home

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Speaker 3: is a much better investment or a detached property than

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Speaker 3: purchasing an apartment because you get land. Like this is

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Speaker 3: not the first time you guys have heard this. And

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Speaker 3: if you do purchase an apartment, you're actually purchasing part

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Speaker 3: of a complex and you'll probably have to pay body, corpse,

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Speaker 3: roborate feet and so on and so forth, and you're

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Speaker 3: not actually purchasing the land. And the difference is that

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Speaker 3: land appreciates while buildings generally depreciate. So what I'm talking

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Speaker 3: about there is land is land. You can knock something

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Speaker 3: down and rebuild it, often in the more expensive areas.

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Speaker 3: So you look at really expensive areas in Sydney and

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Speaker 3: in Melbourne, it's not actually about the house that is

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Speaker 3: on it. It's about the location of the land and

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Speaker 3: what that looks like. You could knock the house down

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Speaker 3: and not have it there and it would still be

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Speaker 3: very close to the property value that was their prior.

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Speaker 3: So for me, it's really important to understand an apartment

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Speaker 3: cool in fifty years. If you still own that, it's

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Speaker 3: going to need a lot of work. That is a

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Speaker 3: cost you're going to have to cough up. You're not

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Speaker 3: in a position where you just knock it down and

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Speaker 3: sell it like it's just not an option. So I

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Speaker 3: think it's important to understand that land does carry higher value,

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Speaker 3: it does increase in value, whereas apartments tend to cap out.

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Speaker 3: In saying that, I think that there is a really

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Speaker 3: great market for purchasing apartments, but I would be looking

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Speaker 3: into getting advice on where that is because we're not

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Speaker 3: talking about really high density, high volume apartment buildings, because

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Speaker 3: they're not going to increase in value in the same

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Speaker 3: way that an apartment, you know, maybe in like South

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Speaker 3: Yarra or in a city like up to ten k's

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Speaker 3: from the CBD in a block of six is going

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Speaker 3: to That's a very different asset than purchasing an apartment

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Speaker 3: in a high density apartment in the Melbourne CBD that

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Speaker 3: has seven hundred other apartments in that complex. Completely different ballgame.

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Speaker 2: Okay, yeah, I think I always knew about the land thing,

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Speaker 2: but maybe I forgot or something that kind of Yeah,

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Speaker 2: it makes sense. And you also can't knock it down

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Speaker 2: and rebuild it.

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Speaker 3: Right, absolutely. And another one of the benefits of houses

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Speaker 3: over apartments is you can add additional value, So you

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Speaker 3: could add an extension, or you could conduct some renovations,

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Speaker 3: or you know, put a second story on the property.

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Speaker 3: With an apartment, you don't have that choice. Usually you

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Speaker 3: can only move the internal walls. And that's still questionable

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Speaker 3: as to whether they are load bearing wolves or not.

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Speaker 3: And I won't get into that, but really apartments are

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Speaker 3: more affordable, and by no means saying they're a bad investment.

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Speaker 3: We just want you to be educated on what the

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Speaker 3: investment you are making is in comparison to another option.

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Speaker 2: Yeah, and now it kind of makes sense as to

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Speaker 2: why they are cheaper beyond just the size of them

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Speaker 2: generally being smaller. Okay, next question here, This one actually

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Speaker 2: came from erin from our community.

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Speaker 3: What's up bearing?

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Speaker 2: She is asking what the goal is with paying down

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Speaker 2: your mortgage faster versus an offcent an offset account.

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Speaker 3: Rather Okay, so there's no right or wrong here at

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Speaker 3: the end of the day, It completely depends on your

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Speaker 3: own personal situation. The thing I'm gonna say when it

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Speaker 3: comes to right here and now is mortgages are very

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Speaker 3: cheap at the moment. If you do not have a

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Speaker 3: two in front of your mortgage, you need to have

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Speaker 3: a chat to your mortgage broker and get that changed because,

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Speaker 3: to be really blunt, money's really cheap right now. You

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Speaker 3: can borrow at like one point five percent. The shere

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Speaker 3: market is still returning on average seven and a half percent,

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Speaker 3: So I know where I'd want to be putting my

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Speaker 3: additional money. So if you are thinking about that, I

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Speaker 3: think it's definitely worthy of having a conversation with somebody

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Speaker 3: who can advise you on the right decision to make

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Speaker 3: for you and work out what that means. But the

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Speaker 3: benefit of having money in an offset account for those

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Speaker 3: of you playing along a home is you can actually

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Speaker 3: access the money really quickly and it decreases the amount

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Speaker 3: of interest you need to pay. So, for example, if

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Speaker 3: you paid off in quotation marks, your entire mortgage. So

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Speaker 3: say you had three hundred thousand dollars cash, lucky you

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Speaker 3: for one. But say you had three hundred grand cash

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Speaker 3: and you had three hundred thousand dollars owing in your mortgage.

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Speaker 3: If you paid it off, you'd extinguish that debt completely.

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Speaker 3: But if you put that entire amount into your mortgage offset,

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Speaker 3: you actually wouldn't have to pay any of your mortgage because,

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Speaker 3: like the entire amount of interest would be completely offset.

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Speaker 3: So for me, it's a very attractive way of putting

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Speaker 3: money against your mortgage and making sure that you're paying

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Speaker 3: less interest while still having quick access to those funds

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Speaker 3: in case you do want to purchase another home and

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Speaker 3: you've got the ability to put down another deposit or

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Speaker 3: investing something else that has a higher amount of interest

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Speaker 3: being paid on it at that point in time. I

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Speaker 3: think it's really important to understand what works for you, though,

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Speaker 3: because I do have some clients that are just going,

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Speaker 3: you know what, victoriou, I want to pay down my mortgage. Personally,

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Speaker 3: that's not what I'm doing. I am not making additional

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Speaker 3: mortgage or payments at the moment, because for me, I'm

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Speaker 3: actually bumping up my share portfolio because for me, that's

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Speaker 3: where money is working harder. I think the downside of

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Speaker 3: offset accounts is when you withdraw money from an offset account,

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Speaker 3: you're going to be charged additional interest. You're not gonna

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Speaker 3: be charged fees and charges. But essentially, if you were

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Speaker 3: offsetting interest before, now you've pulled the money out, it's

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Speaker 3: no longer offsetting it. You're gonna pay a higher interest rate.

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Speaker 3: So that's definitely worthy of consideration. But I think it's

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Speaker 3: really important for you to understand what your long term

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Speaker 3: financial plan is, not just oh, I've got debt, I

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Speaker 3: should extinguish that. Because we talk about good debt, we

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Speaker 3: talk about bad debt, and we talk about okay debt,

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Speaker 3: And to me, a mortgage is okay debt to hold

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Speaker 3: as long as you've got a long term financial plan, yes,

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Speaker 3: or something like a personal loan to me. Bad debt

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Speaker 3: that's credit cards, that is personal loans that is zippay

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Speaker 3: after pay all of the pays that that needs to

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Speaker 3: go asap because the fees are really high, the interest

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Speaker 3: rates are very high, and they are not putting you

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Speaker 3: in a financially optimal position, whereas a mortgage you're helping

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Speaker 3: create wealth you are helping to buy an asset over

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Speaker 3: a long period of time, and at the end of

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Speaker 3: the day, if you said to me, Hey, Victoria, but

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Speaker 3: I can pay off my mortgage fifteen years earlier, I'm

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Speaker 3: going to do an entire podcast on how to do

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Speaker 3: that so that you understand that. But maybe, Treu, I'm

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Speaker 3: going to pay off my mortgage fifteen years earlier. Okay, great,

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Speaker 3: But would you like to pay it off over thirty

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Speaker 3: and at the end of that period of time have

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Speaker 3: your mortgage paid off completely and have a two million

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Speaker 3: dollar investment port for which one would you like. It's

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Speaker 3: about making the right decision for you, not necessarily just

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Speaker 3: seeing it and going, oh, alarm bells, I need to

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Speaker 3: pay it off asap.

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Speaker 2: So how can Erin figure that out? Is she going

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Speaker 2: to have to chat with someone or well, this is

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Speaker 2: not advice but our chat today. Do you think that'll help?

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Speaker 3: Hopefully it helps her, But I think her question was

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Speaker 3: more about should I be paying down my mortgage past

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Speaker 3: or putting it in an offset account? My friend, it

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Speaker 3: is completely up to you. It's all about access. Do

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Speaker 3: you want access to that cash in the future. My

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Speaker 3: answer is, you know, depending on what your financial goals are.

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Speaker 3: But as I always say, this is not about me saying,

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Speaker 3: oh my gosh, but your money could be making more elsewhere.

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Speaker 3: I mean, good, But it's about saying, do you know

436
00:20:24,440 --> 00:20:27,400
Speaker 3: that's an option for you? Great? Now you do, go

437
00:20:27,480 --> 00:20:29,920
Speaker 3: make an educated decision that is right for you. Maybe

438
00:20:29,960 --> 00:20:32,720
Speaker 3: paying down your mortgage still is the most important thing

439
00:20:32,760 --> 00:20:35,639
Speaker 3: for you. But it does not necessarily mean that I

440
00:20:35,680 --> 00:20:38,320
Speaker 3: think you're making the wrong decision. I just worry when

441
00:20:38,359 --> 00:20:40,159
Speaker 3: people just don't know all of the facts and the

442
00:20:40,200 --> 00:20:42,600
Speaker 3: figures and don't know what they're missing out on. That

443
00:20:42,640 --> 00:20:43,800
Speaker 3: would be the worst thing for me.

444
00:20:44,040 --> 00:20:47,000
Speaker 2: Yeah, all right, good pep talk there. I hope you

445
00:20:47,080 --> 00:20:50,119
Speaker 2: enjoyed that one Erin up next, we'll be chatting the

446
00:20:50,240 --> 00:20:52,840
Speaker 2: hidden costs of home buying, which we kind of alluded

447
00:20:52,880 --> 00:20:53,960
Speaker 2: to a little earlier on.

448
00:20:53,920 --> 00:20:55,680
Speaker 3: In the show Dun't Dunt Dumn.

449
00:20:56,000 --> 00:20:58,480
Speaker 2: We'll be getting to the bottom of capital gains tax

450
00:20:58,600 --> 00:21:01,080
Speaker 2: and we'll be shedding a little on what the devil

451
00:21:01,119 --> 00:21:13,320
Speaker 2: and negative gearing is now. I do remember, guys, that

452
00:21:13,480 --> 00:21:16,560
Speaker 2: conversations like the fabulous one we are having right now

453
00:21:16,600 --> 00:21:19,240
Speaker 2: don't just happen on the podcast. We are also having

454
00:21:19,240 --> 00:21:22,080
Speaker 2: these chats on our Facebook page. One hundred and thirty

455
00:21:22,080 --> 00:21:23,760
Speaker 2: eight thousand. I think that's where we're at today.

456
00:21:23,880 --> 00:21:26,240
Speaker 3: That's wild, that's actually where we're at today.

457
00:21:26,320 --> 00:21:28,280
Speaker 2: I believe that is what I saw today.

458
00:21:28,160 --> 00:21:30,000
Speaker 3: Jessica Ritchie. Is that where we're at today?

459
00:21:30,040 --> 00:21:34,359
Speaker 2: Fact check, it's got up a thousand.

460
00:21:36,080 --> 00:21:39,680
Speaker 3: It's actually one was a bit ahead of myself there, guys,

461
00:21:39,680 --> 00:21:41,840
Speaker 3: But that's okay, that's not unlike me.

462
00:21:42,119 --> 00:21:43,080
Speaker 2: It's a lot of pals.

463
00:21:44,720 --> 00:21:51,280
Speaker 3: We'll have one hundred and forty tomorrow morning. Five hundred people. Okay,

464
00:21:51,280 --> 00:21:54,399
Speaker 3: clearly enough attention to the numbers coming in. I just

465
00:21:54,440 --> 00:21:57,880
Speaker 3: like getting my opinion out on all the posts. So yeah,

466
00:21:57,920 --> 00:21:58,360
Speaker 3: there's that.

467
00:21:59,119 --> 00:22:01,680
Speaker 2: We also haven't been deleted by Facebook. I think a

468
00:22:01,720 --> 00:22:05,359
Speaker 2: few news publications are, but we don't fall into that category.

469
00:22:05,600 --> 00:22:11,440
Speaker 3: Lucky fine, more space for us to spread financial literacy heaven.

470
00:22:11,640 --> 00:22:15,399
Speaker 2: We're also on Instagram, YouTube, TikTok. Newsletter was that everything

471
00:22:15,400 --> 00:22:15,760
Speaker 2: we got?

472
00:22:15,920 --> 00:22:18,439
Speaker 3: Yeah, we do, but like, don't downplay that newsletter. It's

473
00:22:18,480 --> 00:22:20,919
Speaker 3: my favorite pieces on money content. Guys.

474
00:22:21,080 --> 00:22:23,439
Speaker 2: Yeah, yeah, that'll drop today in your inbox.

475
00:22:23,480 --> 00:22:25,080
Speaker 3: Guys, what are you going to talk about in the

476
00:22:25,320 --> 00:22:26,240
Speaker 3: Friday newsletter?

477
00:22:26,320 --> 00:22:29,000
Speaker 2: G A lot to come this week?

478
00:22:29,880 --> 00:22:32,120
Speaker 3: She doesn't know, guys, what that means.

479
00:22:32,480 --> 00:22:35,359
Speaker 2: I think last week my recommendation was electric bike. So

480
00:22:35,440 --> 00:22:38,560
Speaker 2: let me know if anyone got around that, I'm sure

481
00:22:38,600 --> 00:22:39,080
Speaker 2: you didn't.

482
00:22:40,200 --> 00:22:41,800
Speaker 3: Do you even own an electric bike?

483
00:22:42,000 --> 00:22:44,680
Speaker 2: My mom does, and if you read last week's newsletter

484
00:22:45,000 --> 00:22:48,119
Speaker 2: then you would have known that. But check out, manee,

485
00:22:48,280 --> 00:22:49,480
Speaker 2: look at that Nari scar.

486
00:22:49,720 --> 00:22:52,560
Speaker 3: Yeah, everyone's so shocked. They're so impressed.

487
00:22:52,920 --> 00:22:55,520
Speaker 2: It's actually cool. I'm a biker chick. Anyways, should we

488
00:22:55,560 --> 00:22:56,160
Speaker 2: get back to the show.

489
00:22:56,200 --> 00:22:59,120
Speaker 3: Yeah, absolutely, back to the show. Read the newsletter George

490
00:22:59,200 --> 00:23:01,040
Speaker 3: Kinn's a biker cheek summarized.

491
00:23:01,359 --> 00:23:03,960
Speaker 2: Okay, so we had a question from Sarah, who was

492
00:23:04,040 --> 00:23:06,640
Speaker 2: asked what you would say at the hidden costs are

493
00:23:06,920 --> 00:23:09,280
Speaker 2: that come with buying a house or an investment property?

494
00:23:09,400 --> 00:23:13,199
Speaker 3: Yeah, there are lots, I know, talk me through them. Thought, okay,

495
00:23:13,240 --> 00:23:15,159
Speaker 3: so there are a number of hidden I don't know

496
00:23:15,160 --> 00:23:17,680
Speaker 3: if they're hidden anymore. Keep talking about them, so maybe

497
00:23:17,680 --> 00:23:21,439
Speaker 3: they're not so secret. Maybe Yeah, you just don't know, right, So,

498
00:23:21,720 --> 00:23:24,200
Speaker 3: when it comes to purchasing property, there are actually a

499
00:23:24,280 --> 00:23:27,680
Speaker 3: number of different costs. They're not necessarily hidden, but they

500
00:23:27,720 --> 00:23:30,240
Speaker 3: feel hidden when you haven't done your research and you're

501
00:23:30,240 --> 00:23:32,200
Speaker 3: purchasing your property and they're like oh here, I pay

502
00:23:32,240 --> 00:23:35,480
Speaker 3: the land transfer fee like wash, sorry new phone? Who

503
00:23:35,600 --> 00:23:38,360
Speaker 3: is this so here? We are trying to educate you

504
00:23:38,600 --> 00:23:40,760
Speaker 3: the end of the day, beyond the deposit for your

505
00:23:40,760 --> 00:23:42,560
Speaker 3: home and the repayments that you're going to need to

506
00:23:42,600 --> 00:23:45,080
Speaker 3: come up for the next few decades. Sorry. Friends. You'll

507
00:23:45,080 --> 00:23:47,119
Speaker 3: also need to pay stamp duty. I think we already

508
00:23:47,119 --> 00:23:49,320
Speaker 3: all knew that one. You'll need to pay conveyancing fees.

509
00:23:49,359 --> 00:23:51,639
Speaker 3: They're non negotiable. You actually do have to get legal

510
00:23:51,640 --> 00:23:55,080
Speaker 3: advice to count just DIY. You need to pay mortgage insurance,

511
00:23:55,080 --> 00:23:57,879
Speaker 3: which is something I didn't realize was actually non negotiable

512
00:23:58,040 --> 00:24:00,800
Speaker 3: for the bank to allow you to get your mortgage.

513
00:24:00,920 --> 00:24:01,399
Speaker 2: There you go.

514
00:24:01,600 --> 00:24:04,520
Speaker 3: Council rates very exciting. You'll have to pay water. You'll

515
00:24:04,520 --> 00:24:07,240
Speaker 3: have to pay for pest inspections on the property, building

516
00:24:07,280 --> 00:24:09,399
Speaker 3: inspections to make sure that you're not buying a property

517
00:24:09,440 --> 00:24:12,199
Speaker 3: that is riddled with termites. You'll have to pay for

518
00:24:12,359 --> 00:24:14,800
Speaker 3: loan application fees, which I just feel like is a

519
00:24:14,800 --> 00:24:17,119
Speaker 3: bit of a kick in the pants because I'm already

520
00:24:17,119 --> 00:24:19,359
Speaker 3: giving you all my money bank, Why are you trying

521
00:24:19,400 --> 00:24:22,399
Speaker 3: to take more grim Yeah, pretty rude, but that's okay.

522
00:24:22,600 --> 00:24:25,120
Speaker 3: You have to pay moving costs. Those are pretty pricey.

523
00:24:25,200 --> 00:24:26,360
Speaker 3: At the end of the day, I think it cost

524
00:24:26,400 --> 00:24:28,920
Speaker 3: me million thousand dollars to move house last time. I did.

525
00:24:29,040 --> 00:24:30,560
Speaker 2: You're kidding and I just got me round.

526
00:24:30,840 --> 00:24:32,560
Speaker 3: Yeah I was around the corner, but like, can you

527
00:24:32,600 --> 00:24:35,640
Speaker 3: pick up a queen bed frame? Yeah? No, I couldn't either,

528
00:24:35,760 --> 00:24:38,560
Speaker 3: don't worry and giant wardrobes. It was a nightmare. At

529
00:24:38,560 --> 00:24:39,960
Speaker 3: the end of the day, I'm glad I paid for it,

530
00:24:40,000 --> 00:24:41,679
Speaker 3: to be honest, because mere dragging it down the road

531
00:24:41,720 --> 00:24:45,199
Speaker 3: wouldn't have gone well. And appliances also the cost of

532
00:24:45,240 --> 00:24:51,040
Speaker 3: furniture to refurniture places broken broken appliances. The other week,

533
00:24:51,280 --> 00:24:53,919
Speaker 3: Georgia King, I had to call out the plumber twice

534
00:24:54,000 --> 00:24:56,800
Speaker 3: because it turns out I have roots going into the

535
00:24:56,800 --> 00:25:00,520
Speaker 3: plumbing or the I have roots growing into the pipes

536
00:25:00,600 --> 00:25:03,639
Speaker 3: under my house, so he had to clear that twice.

537
00:25:03,720 --> 00:25:06,320
Speaker 3: That cost me two hundred and twenty dollars per call out.

538
00:25:06,359 --> 00:25:09,000
Speaker 3: So that is four hundred and forty dollars I recently

539
00:25:09,040 --> 00:25:13,080
Speaker 3: spent on plumbing, which I didn't see coming, but also

540
00:25:13,320 --> 00:25:15,400
Speaker 3: could have used that as a money loss on the pod.

541
00:25:15,680 --> 00:25:16,640
Speaker 2: Do you save it for next time?

542
00:25:16,640 --> 00:25:19,280
Speaker 3: I'll save it for next time. Everybody act shocked when

543
00:25:19,320 --> 00:25:21,840
Speaker 3: I talk about that, but I think that there's so

544
00:25:22,040 --> 00:25:24,080
Speaker 3: many different costs that we just don't think about, and

545
00:25:24,119 --> 00:25:26,560
Speaker 3: it is so important that we're aware of these fees

546
00:25:26,600 --> 00:25:29,880
Speaker 3: and costs because they genuinely do stack up and it's

547
00:25:29,920 --> 00:25:32,960
Speaker 3: really stressful. So it's going to be different state to state.

548
00:25:33,040 --> 00:25:35,439
Speaker 3: But here in Victoria, stamp duty is currently void for

549
00:25:35,480 --> 00:25:37,840
Speaker 3: first home buyers who are buying property of less than

550
00:25:37,880 --> 00:25:40,320
Speaker 3: six hundred grand. That is an epic money win because

551
00:25:40,359 --> 00:25:43,960
Speaker 3: stamp duty is spenno and there's a concession for first

552
00:25:44,000 --> 00:25:46,600
Speaker 3: home buyers who are buying between the amounts of six

553
00:25:46,720 --> 00:25:49,960
Speaker 3: hundred thousand and one dollars and seven hundred and fifty grand.

554
00:25:50,040 --> 00:25:52,639
Speaker 3: So if you fall into those categories, the amount of

555
00:25:52,640 --> 00:25:56,480
Speaker 3: money falls on a pretty sliding scale. So for me,

556
00:25:56,800 --> 00:25:58,720
Speaker 3: I think that's pretty good because at the end of

557
00:25:58,720 --> 00:26:02,240
Speaker 3: the day it used to about ten percent. Stamp duty

558
00:26:02,600 --> 00:26:04,159
Speaker 3: rarely speno. That is speno.

559
00:26:04,520 --> 00:26:07,200
Speaker 2: I think crimes were like thirty grand though.

560
00:26:07,200 --> 00:26:10,520
Speaker 3: Absolute, so like back in the day. I'm not to

561
00:26:10,560 --> 00:26:13,120
Speaker 3: be honest, I am not the professional here, Amil Lenardi

562
00:26:13,160 --> 00:26:15,159
Speaker 3: who is going to be on the property to taybook is.

563
00:26:15,520 --> 00:26:18,640
Speaker 3: But I was genuinely gobsmacked when it came to how

564
00:26:18,720 --> 00:26:21,880
Speaker 3: much money I had to pay for my house deposit.

565
00:26:22,280 --> 00:26:24,840
Speaker 3: If you are now purchasing property is much less, so

566
00:26:24,960 --> 00:26:27,520
Speaker 3: that is pretty attractive. Have a check on your local

567
00:26:27,560 --> 00:26:30,320
Speaker 3: government website to see what concessions you can get if

568
00:26:30,320 --> 00:26:33,280
Speaker 3: you are purchasing property. I think it's really important to

569
00:26:33,280 --> 00:26:35,119
Speaker 3: make sure that you're making the most of everything that

570
00:26:35,320 --> 00:26:37,639
Speaker 3: is on offer to us, because they could be state

571
00:26:37,720 --> 00:26:41,359
Speaker 3: level or even national plans. So definitely, if you're looking

572
00:26:41,400 --> 00:26:44,160
Speaker 3: at properly in the near future, have a look and see,

573
00:26:44,440 --> 00:26:46,600
Speaker 3: or just ask the shehesl on money community they've got.

574
00:26:46,720 --> 00:26:49,840
Speaker 3: They'll know, they know, they always know. Arguably sometimes they

575
00:26:49,880 --> 00:26:52,240
Speaker 3: actually know more than I do because they're more across it.

576
00:26:52,600 --> 00:26:53,880
Speaker 3: One hundred and thirty thousand people.

577
00:26:53,960 --> 00:26:55,680
Speaker 2: You can ask, well, that's in one hundred and thirty

578
00:26:55,680 --> 00:26:57,600
Speaker 2: eight thousand, not to be confused with one hundred and

579
00:26:57,640 --> 00:26:58,359
Speaker 2: seventy eight thousand.

580
00:26:58,600 --> 00:27:00,919
Speaker 3: Make sure that you actually search the group before just

581
00:27:01,000 --> 00:27:04,159
Speaker 3: chucking your question up, because we actually and I know

582
00:27:04,400 --> 00:27:06,399
Speaker 3: that some people get a little bit annoyed by this,

583
00:27:06,520 --> 00:27:08,919
Speaker 3: but I actually decline a lot of posts because that

584
00:27:09,000 --> 00:27:11,359
Speaker 3: question has already been asked in the community, and I

585
00:27:11,400 --> 00:27:13,760
Speaker 3: don't want our community to become a place that is

586
00:27:13,800 --> 00:27:14,879
Speaker 3: just super repetitive.

587
00:27:15,400 --> 00:27:18,439
Speaker 2: I want you to talk to me about capital gains tax.

588
00:27:18,800 --> 00:27:23,480
Speaker 3: Capital gains tax CGT. CGT very attractive if you use

589
00:27:23,520 --> 00:27:25,679
Speaker 3: the acronym in a really fast way. It makes you

590
00:27:25,760 --> 00:27:28,600
Speaker 3: sound like you know what you're talking about, which thankfully

591
00:27:28,720 --> 00:27:32,040
Speaker 3: I do. So CGT is capital gains tax, and that

592
00:27:32,200 --> 00:27:34,480
Speaker 3: is a tax that you pay basically if you sell

593
00:27:34,560 --> 00:27:37,280
Speaker 3: a capital asset, so whether it is shares or whether

594
00:27:37,320 --> 00:27:39,679
Speaker 3: it is property, you will either make a capital loss

595
00:27:40,200 --> 00:27:42,760
Speaker 3: or a capital gain, and that means you made money

596
00:27:42,960 --> 00:27:44,840
Speaker 3: and you'll need to pay tax on that because any

597
00:27:44,880 --> 00:27:47,199
Speaker 3: money that you make in Australia you do need to

598
00:27:47,200 --> 00:27:50,240
Speaker 3: pay tax at your marginal tax rate on. So this

599
00:27:50,400 --> 00:27:53,800
Speaker 3: is referred to as CGT, but it is also lumped

600
00:27:53,840 --> 00:27:56,359
Speaker 3: onto your income tax rather than just like a completely

601
00:27:56,440 --> 00:27:59,479
Speaker 3: separate tax return. So it definitely isn't something that you

602
00:27:59,520 --> 00:28:01,880
Speaker 3: have to go and do above and beyond. Yeah, it'll

603
00:28:01,880 --> 00:28:02,600
Speaker 3: all be included.

604
00:28:03,160 --> 00:28:06,680
Speaker 2: How do you know, Like is that an automatic thing

605
00:28:06,960 --> 00:28:08,240
Speaker 2: or like how do you know?

606
00:28:08,480 --> 00:28:11,240
Speaker 3: This is where if you own property, it's important to

607
00:28:11,320 --> 00:28:14,040
Speaker 3: have an accountant or a little bit of prowess when

608
00:28:14,040 --> 00:28:16,679
Speaker 3: it comes to doing your own tax return. Once you

609
00:28:16,760 --> 00:28:19,280
Speaker 3: go from just being a salary and wage earner who

610
00:28:19,359 --> 00:28:22,240
Speaker 3: just submits all this stuff to the ATA website and

611
00:28:22,320 --> 00:28:25,360
Speaker 3: diise their tax return. This is where you probably need

612
00:28:25,400 --> 00:28:27,159
Speaker 3: to make sure that you're tracking how much you're spending

613
00:28:27,160 --> 00:28:29,159
Speaker 3: on the property so that you can claim it. And

614
00:28:29,200 --> 00:28:31,239
Speaker 3: then if you sell a property, making sure that your

615
00:28:31,280 --> 00:28:33,680
Speaker 3: accountant or is how much you sold that property for

616
00:28:33,960 --> 00:28:35,960
Speaker 3: versus how much you purchased it for so that they

617
00:28:35,960 --> 00:28:38,680
Speaker 3: can calculate the CGT on that asset for you.

618
00:28:38,960 --> 00:28:41,080
Speaker 2: And you only have to pay capital gains tax once

619
00:28:41,120 --> 00:28:44,400
Speaker 2: that's once you've sold your asset with property.

620
00:28:44,480 --> 00:28:47,000
Speaker 3: Yes, it's once you've sold your asset, but it's going

621
00:28:47,080 --> 00:28:50,280
Speaker 3: to differ depending on shares, based on how much money

622
00:28:50,320 --> 00:28:52,560
Speaker 3: you make and whether you're reinvesting dividends or not. But

623
00:28:52,600 --> 00:28:54,440
Speaker 3: at the end of the day, my friends, if you

624
00:28:54,480 --> 00:28:56,800
Speaker 3: are making money, that is a good thing, and paying

625
00:28:56,880 --> 00:28:59,200
Speaker 3: tax is also a really great thing. And for me,

626
00:29:00,000 --> 00:29:02,160
Speaker 3: really frustrated when people are like, oh my gosh, like

627
00:29:02,320 --> 00:29:04,680
Speaker 3: I can't believe I had to play capital gains tax

628
00:29:04,720 --> 00:29:06,720
Speaker 3: on that, Like, yeah, but it was never yours. You

629
00:29:06,760 --> 00:29:10,120
Speaker 3: always knew that, So they changed the goalposts, like that's

630
00:29:10,120 --> 00:29:13,480
Speaker 3: how it works in this country. So we're really lucky

631
00:29:13,600 --> 00:29:14,920
Speaker 3: to be able to do that, and that is my

632
00:29:14,960 --> 00:29:15,760
Speaker 3: personal opinion.

633
00:29:15,840 --> 00:29:19,000
Speaker 2: Love it well said, Okay, we have lots of questions

634
00:29:19,000 --> 00:29:21,880
Speaker 2: and we always do about positive and negative gearing.

635
00:29:22,280 --> 00:29:25,040
Speaker 3: I got you, what's the deal? You don't want to

636
00:29:25,080 --> 00:29:25,600
Speaker 3: explain it?

637
00:29:26,360 --> 00:29:29,080
Speaker 2: Absolutely, So.

638
00:29:29,400 --> 00:29:32,840
Speaker 3: Negative gearing is where the expense is associated with your

639
00:29:32,840 --> 00:29:35,800
Speaker 3: asset i e. Your home or your share portfolio are

640
00:29:35,840 --> 00:29:37,800
Speaker 3: more than the amount of money that you made from

641
00:29:37,880 --> 00:29:41,080
Speaker 3: that asset. So say you purchased an investment property and

642
00:29:41,120 --> 00:29:43,520
Speaker 3: you spent a whole heap more money on that property

643
00:29:43,800 --> 00:29:46,520
Speaker 3: than what you made. Say, for example, you spent fifty

644
00:29:46,520 --> 00:29:48,560
Speaker 3: thousand dollars on it, but you're only made twenty thousand

645
00:29:48,560 --> 00:29:51,480
Speaker 3: dollars in rent that came in. That is a negatively

646
00:29:51,520 --> 00:29:54,000
Speaker 3: geared property and that means that you're not going to

647
00:29:54,000 --> 00:29:55,840
Speaker 3: have to pay heaps and heaps of tax because you

648
00:29:55,840 --> 00:29:59,080
Speaker 3: can claim it. Whereas a positively geared property is where

649
00:29:59,120 --> 00:30:02,000
Speaker 3: you were actually making money from that property and the

650
00:30:02,040 --> 00:30:06,120
Speaker 3: expenses associated with that property are lower than the amount

651
00:30:06,160 --> 00:30:09,040
Speaker 3: of money that you're making, which is obviously the dream. Okay,

652
00:30:09,080 --> 00:30:12,040
Speaker 3: so let's have a chat about the gearing of property.

653
00:30:12,120 --> 00:30:15,960
Speaker 3: So you mentioned negatively geared properties and positively geared properties,

654
00:30:15,960 --> 00:30:17,240
Speaker 3: But did you also know that you could have a

655
00:30:17,280 --> 00:30:21,200
Speaker 3: neutraally geared property absolutely making it complex over here, So

656
00:30:21,360 --> 00:30:23,880
Speaker 3: I will explain all of those really quickly at the

657
00:30:23,920 --> 00:30:26,440
Speaker 3: end of the day. This can be a little bit complex.

658
00:30:26,680 --> 00:30:31,400
Speaker 3: But a negatively geared property geared geared, but a negatively

659
00:30:31,480 --> 00:30:34,719
Speaker 3: gard property means that the income that you are making

660
00:30:34,840 --> 00:30:37,400
Speaker 3: from that property is less than the more gedge repayments

661
00:30:37,440 --> 00:30:40,840
Speaker 3: and expenses you're incurred on it. So negative, Does that

662
00:30:40,880 --> 00:30:42,720
Speaker 3: make sense? You are looking so confused.

663
00:30:42,960 --> 00:30:44,960
Speaker 2: I know. I think I just have a pre existing

664
00:30:45,040 --> 00:30:48,040
Speaker 2: fear of positive and negative gearing, which I feel like, sure,

665
00:30:48,080 --> 00:30:48,960
Speaker 2: it's not scary.

666
00:30:49,280 --> 00:30:52,000
Speaker 3: It's not scary. I promise. It is just literally a fact,

667
00:30:52,000 --> 00:30:53,200
Speaker 3: and we just want to understand it.

668
00:30:53,160 --> 00:30:55,840
Speaker 2: For tax purposes. Can I try and explain it to you? Yeah,

669
00:30:55,880 --> 00:30:59,480
Speaker 2: of course, it's so negative gearing. Yeah, nothing to do

670
00:30:59,560 --> 00:31:02,040
Speaker 2: with gears. Even though I'm a bucker girl.

671
00:31:02,040 --> 00:31:03,040
Speaker 3: You are a biker gals.

672
00:31:03,240 --> 00:31:07,640
Speaker 2: So if you buy an investment property, yes, sir, and

673
00:31:08,400 --> 00:31:12,240
Speaker 2: you bought it for like two hundo grand Yeah, thanks,

674
00:31:12,280 --> 00:31:16,160
Speaker 2: it's pretty shape good, but you spent and you've got

675
00:31:16,200 --> 00:31:20,600
Speaker 2: tenants in there and over the year they pay you

676
00:31:20,680 --> 00:31:24,000
Speaker 2: like twenty grand for rent. Yep, nice, but you had

677
00:31:24,000 --> 00:31:26,200
Speaker 2: to do up the bathroom and that costs fifty grand.

678
00:31:27,240 --> 00:31:29,680
Speaker 3: No bathroom house.

679
00:31:29,840 --> 00:31:31,040
Speaker 2: It was made of gold.

680
00:31:31,200 --> 00:31:33,600
Speaker 3: Oh wow, that's pretty for a gold bathroom.

681
00:31:33,680 --> 00:31:35,400
Speaker 2: What's happened here is it's negative gearing.

682
00:31:35,480 --> 00:31:39,240
Speaker 3: Yes, because the rental income that you received is less

683
00:31:39,280 --> 00:31:43,040
Speaker 3: than the expenses that you incurred and then mortgage repayments

684
00:31:43,080 --> 00:31:44,160
Speaker 3: that you had to pay.

685
00:31:44,000 --> 00:31:47,160
Speaker 2: So then you can claim it. Yes, but what does

686
00:31:47,160 --> 00:31:47,560
Speaker 2: that mean.

687
00:31:47,880 --> 00:31:49,680
Speaker 3: It means that you can claim it on tax. So

688
00:31:49,720 --> 00:31:53,520
Speaker 3: each year the property costs you money to owe, right,

689
00:31:54,120 --> 00:31:57,200
Speaker 3: negative costs you money to owe negative gearing.

690
00:31:57,280 --> 00:31:59,360
Speaker 2: That is what it is, okay, And the benefit is

691
00:31:59,360 --> 00:32:02,080
Speaker 2: that it's low attacks and you still have that asset

692
00:32:02,360 --> 00:32:03,880
Speaker 2: which has that capital growth.

693
00:32:04,400 --> 00:32:08,479
Speaker 3: Yeah, yes, exactly. And negatively geared doesn't mean you actually

694
00:32:08,480 --> 00:32:11,120
Speaker 3: have to spend any money on your property. For example,

695
00:32:11,360 --> 00:32:13,600
Speaker 3: you could have purchased a property where the mortgage repayments

696
00:32:13,640 --> 00:32:15,720
Speaker 3: are four thousand dollars a month, but you're only generating

697
00:32:15,720 --> 00:32:18,240
Speaker 3: two thousand dollars a month of rental income. Therefore, your

698
00:32:18,280 --> 00:32:20,720
Speaker 3: shortfall would be two thousand dollars a month that you

699
00:32:20,840 --> 00:32:23,400
Speaker 3: have to cough up yourself to pay for that property,

700
00:32:23,720 --> 00:32:27,320
Speaker 3: making it negatively geared because that asset isn't producing income

701
00:32:27,400 --> 00:32:30,480
Speaker 3: for you that you could technically spend. Okay, does that help?

702
00:32:30,600 --> 00:32:33,200
Speaker 2: It does help? And I have a question. Was this

703
00:32:33,280 --> 00:32:35,719
Speaker 2: the thing that like the rich fellas were doing that

704
00:32:35,800 --> 00:32:38,840
Speaker 2: kind of shut us young fellas out of the market.

705
00:32:39,080 --> 00:32:42,840
Speaker 3: No, g that was positively gearing. So that's the opposite

706
00:32:42,880 --> 00:32:45,400
Speaker 3: of negatively gearing. And that is where the rental income

707
00:32:45,440 --> 00:32:49,080
Speaker 3: that you make is more money than the mortgage repayments

708
00:32:49,120 --> 00:32:51,440
Speaker 3: and the expenses that you make on the property. So

709
00:32:51,520 --> 00:32:54,080
Speaker 3: each year that property is making you money to own.

710
00:32:55,040 --> 00:32:58,400
Speaker 3: So that's running in okay. Obviously, example of that would

711
00:32:58,440 --> 00:33:01,080
Speaker 3: be mortgage repayments are eight thousand dollars a month, but

712
00:33:01,240 --> 00:33:03,160
Speaker 3: you are renting that property out for three and a

713
00:33:03,160 --> 00:33:05,480
Speaker 3: half thousand dollars a month. Therefore you are making five

714
00:33:05,560 --> 00:33:07,680
Speaker 3: hundred dollars a month more than what that property is

715
00:33:07,720 --> 00:33:13,120
Speaker 3: costing you. Right money win. And now to absolutely surprise

716
00:33:13,240 --> 00:33:16,720
Speaker 3: and shock you all, neutral is where the rental income

717
00:33:16,880 --> 00:33:19,360
Speaker 3: is actually equal to the mortgage you revaniments and expenses,

718
00:33:19,520 --> 00:33:21,560
Speaker 3: so each of the property then doesn't cost you anything

719
00:33:21,560 --> 00:33:23,960
Speaker 3: out of pocket at all. Does that make sense? Is

720
00:33:24,000 --> 00:33:25,480
Speaker 3: that good. I'm just gonna put.

721
00:33:25,320 --> 00:33:29,240
Speaker 2: A graphic on the Yeah, let's make it how bad? That?

722
00:33:29,880 --> 00:33:31,400
Speaker 2: All right, let's move on. That was fun though?

723
00:33:31,680 --> 00:33:32,840
Speaker 3: Was that fun? Did you like that?

724
00:33:33,200 --> 00:33:33,880
Speaker 2: I did like that?

725
00:33:33,960 --> 00:33:36,240
Speaker 3: Thank you. I'm not sure if anybody else did. But

726
00:33:36,320 --> 00:33:38,720
Speaker 3: at this point it's so deep in the episode that

727
00:33:38,760 --> 00:33:39,640
Speaker 3: if you're still here.

728
00:33:39,560 --> 00:33:40,240
Speaker 2: It's way too late.

729
00:33:40,360 --> 00:33:40,720
Speaker 3: Suck it.

730
00:33:41,960 --> 00:33:42,320
Speaker 2: Suck it.

731
00:33:42,400 --> 00:33:42,840
Speaker 3: Indeed.

732
00:33:43,640 --> 00:33:46,440
Speaker 2: Now, the risks of property, I feel like we don't

733
00:33:46,440 --> 00:33:48,960
Speaker 2: talk about them as much as we talk about the benefits.

734
00:33:49,000 --> 00:33:51,240
Speaker 2: So here's our opportunity talk us through.

735
00:33:51,280 --> 00:33:55,160
Speaker 3: The property is very attractive because it is the Australian dream.

736
00:33:55,400 --> 00:33:57,640
Speaker 3: I'm not saying it is attractive. I'm saying we think

737
00:33:57,680 --> 00:34:00,760
Speaker 3: it is attractive, and often we put ourselves in positions

738
00:34:00,760 --> 00:34:03,440
Speaker 3: where we buy outside of what we can afford. Now,

739
00:34:03,480 --> 00:34:06,360
Speaker 3: I'm not saying that you purchase something that requires you

740
00:34:06,400 --> 00:34:07,880
Speaker 3: to spend five grand a month on it you just

741
00:34:07,920 --> 00:34:10,520
Speaker 3: don't have that money. I'm saying you can't afford it

742
00:34:10,520 --> 00:34:13,040
Speaker 3: because it's sacrificing too much of your lifestyle and you

743
00:34:13,080 --> 00:34:15,560
Speaker 3: can't have a life. In addition to that, we forget

744
00:34:15,560 --> 00:34:18,880
Speaker 3: that a mortgage is a thirty year commitment that puts

745
00:34:18,960 --> 00:34:21,760
Speaker 3: us in a position where we actually have to honor

746
00:34:21,760 --> 00:34:23,640
Speaker 3: that commitment each and every single month. It's not like

747
00:34:23,680 --> 00:34:25,839
Speaker 3: a savings plan where you're saving for your first home

748
00:34:25,880 --> 00:34:27,400
Speaker 3: and if this month you went out with the girls

749
00:34:27,400 --> 00:34:30,440
Speaker 3: too many times, you just don't add to your savings.

750
00:34:30,480 --> 00:34:32,200
Speaker 3: If you don't pay your mortgage, you're actually in a

751
00:34:32,239 --> 00:34:34,479
Speaker 3: bit of a pickle. So we need to make sure

752
00:34:34,560 --> 00:34:37,279
Speaker 3: that we are buying within what we can afford and

753
00:34:37,320 --> 00:34:40,120
Speaker 3: what we actually want to put towards wealth creation, because

754
00:34:40,160 --> 00:34:43,120
Speaker 3: that's the plan. So when we're buying a mortgage, which

755
00:34:43,160 --> 00:34:46,240
Speaker 3: is essentially what you are doing, that's a long term commitment.

756
00:34:46,320 --> 00:34:48,640
Speaker 3: I just don't think that people see the gravity of

757
00:34:48,640 --> 00:34:51,400
Speaker 3: that situation because we get so caught up in this

758
00:34:51,520 --> 00:34:55,040
Speaker 3: love bubble of purchasing your property and being excited about

759
00:34:55,040 --> 00:34:58,080
Speaker 3: having made the deposit, and it's all just really exciting.

760
00:34:58,120 --> 00:34:59,600
Speaker 3: But what we really need to do is pao it

761
00:34:59,640 --> 00:35:02,279
Speaker 3: back bit and be okay, what can I afford each

762
00:35:02,320 --> 00:35:05,120
Speaker 3: and every single month to put to this second thing

763
00:35:05,239 --> 00:35:07,480
Speaker 3: is timing the market. The best thing to do is

764
00:35:07,520 --> 00:35:10,440
Speaker 3: buy when you can afford, not when you think is

765
00:35:10,480 --> 00:35:12,840
Speaker 3: going to be a really great time to buy, Because

766
00:35:12,880 --> 00:35:14,600
Speaker 3: if you think it's a really great time to buy,

767
00:35:14,680 --> 00:35:18,960
Speaker 3: so does everybody else. So don't let Fomo actually influence you,

768
00:35:19,040 --> 00:35:21,200
Speaker 3: because at the end of the day, it's not a

769
00:35:21,239 --> 00:35:24,400
Speaker 3: good investment if it puts you in a financially strange position.

770
00:35:24,719 --> 00:35:28,280
Speaker 3: Terrible idea from my point of view. And then also

771
00:35:28,440 --> 00:35:30,640
Speaker 3: just not considering all the costs and all the fees

772
00:35:30,920 --> 00:35:33,600
Speaker 3: that come above which we already went with. There is

773
00:35:33,680 --> 00:35:35,880
Speaker 3: just so much more to buying property than a lot

774
00:35:35,920 --> 00:35:36,920
Speaker 3: of people think there is.

775
00:35:37,360 --> 00:35:39,400
Speaker 2: I think something that came up a long term commitment.

776
00:35:39,440 --> 00:35:42,319
Speaker 2: You know, well that's not ready ready, that's the thing.

777
00:35:42,920 --> 00:35:45,360
Speaker 2: So we do have the Property Playbook coming up to

778
00:35:45,400 --> 00:35:48,880
Speaker 2: explain the A to z of buying houses, what about

779
00:35:49,000 --> 00:35:50,040
Speaker 2: homes everything.

780
00:35:50,080 --> 00:35:52,520
Speaker 3: I'm genuinely so excited about this. This wasn't meant to

781
00:35:52,520 --> 00:35:54,480
Speaker 3: be a plug for the show, but it totally is

782
00:35:54,600 --> 00:35:55,560
Speaker 3: a plug for the show.

783
00:35:55,680 --> 00:35:56,680
Speaker 2: Let just go hand in hand.

784
00:35:56,960 --> 00:36:01,000
Speaker 3: Yeah, and also cool name right, the Property Playbook Literally

785
00:36:01,080 --> 00:36:03,959
Speaker 3: should that one by myself? It is good, Thank you, Chue.

786
00:36:03,960 --> 00:36:04,399
Speaker 3: I like it.

787
00:36:04,560 --> 00:36:07,800
Speaker 2: But okay, so Property Playbook aside, if someone is thinking

788
00:36:07,880 --> 00:36:10,120
Speaker 2: investment property, it's the way I want to go. Who

789
00:36:10,120 --> 00:36:11,879
Speaker 2: should they be talking to? Where should they start?

790
00:36:12,239 --> 00:36:14,520
Speaker 3: Chat to? Your mortgage proker? About whether you can afford

791
00:36:14,560 --> 00:36:17,680
Speaker 3: it or not get pre approval. Start having that conversation.

792
00:36:18,000 --> 00:36:20,799
Speaker 3: They can assess your financial position, work out where you

793
00:36:20,800 --> 00:36:23,040
Speaker 3: are actually sitting, what you can afford, what you can't afford.

794
00:36:23,320 --> 00:36:25,239
Speaker 3: Usually they have a pretty good idea of what the

795
00:36:25,280 --> 00:36:27,560
Speaker 3: market's up to too, so have a chat to them

796
00:36:27,600 --> 00:36:31,440
Speaker 3: because they are usually smart individuals. But then also have

797
00:36:31,480 --> 00:36:33,919
Speaker 3: a chat to a financial advisor. Establish what you can

798
00:36:33,960 --> 00:36:36,600
Speaker 3: do in the long term, because too many times we

799
00:36:36,760 --> 00:36:38,759
Speaker 3: just see I need to buy an investment property or

800
00:36:38,840 --> 00:36:40,839
Speaker 3: work it out all after that, I'll just work out

801
00:36:40,880 --> 00:36:43,240
Speaker 3: my financial life once I've just cured my first property.

802
00:36:43,360 --> 00:36:45,560
Speaker 3: That is not the time to work out your financial life.

803
00:36:45,640 --> 00:36:47,800
Speaker 3: It is when you have the least amount of commitments

804
00:36:47,800 --> 00:36:49,680
Speaker 3: but the most amount of choice, and that is before

805
00:36:49,719 --> 00:36:51,959
Speaker 3: you purchase your home. So for me, have a chat

806
00:36:51,960 --> 00:36:54,960
Speaker 3: to someone who can actually advise you. There are property

807
00:36:55,080 --> 00:36:58,959
Speaker 3: specific financial advisors. I'm not actually one of them, so

808
00:36:59,400 --> 00:37:02,360
Speaker 3: I probably you wouldn't talk to me personally about purchasing

809
00:37:02,360 --> 00:37:05,239
Speaker 3: property because whilst I'm very passionate about it as an

810
00:37:05,239 --> 00:37:07,880
Speaker 3: asset class, I would not have a clue where you

811
00:37:07,960 --> 00:37:11,439
Speaker 3: personally should be purchasing a Buia's advocate on the other hand,

812
00:37:11,560 --> 00:37:13,200
Speaker 3: is going to be able to guide you when it

813
00:37:13,200 --> 00:37:15,759
Speaker 3: comes to that. And there are buias advocates not to

814
00:37:16,120 --> 00:37:18,640
Speaker 3: trump Amy's own horn, which you know she'll love this

815
00:37:18,680 --> 00:37:21,920
Speaker 3: because she does also listen to our podcast. She knows

816
00:37:22,000 --> 00:37:24,600
Speaker 3: what is good when it comes to purchasing investment properties

817
00:37:24,600 --> 00:37:27,920
Speaker 3: like that's her bread and butter. She purchases investment properties

818
00:37:28,200 --> 00:37:31,080
Speaker 3: for investors like she looks for them. She makes sure

819
00:37:31,120 --> 00:37:33,279
Speaker 3: that they're going to be a great asset. Someone like

820
00:37:33,320 --> 00:37:35,200
Speaker 3: that on your team is definitely worth the money in

821
00:37:35,239 --> 00:37:38,800
Speaker 3: my books, do a Google with your location and brokers

822
00:37:38,800 --> 00:37:41,239
Speaker 3: in that area if you're looking for someone. Obviously, we've

823
00:37:41,239 --> 00:37:44,600
Speaker 3: got a great, arguably great referral program where we can

824
00:37:44,600 --> 00:37:47,160
Speaker 3: match you with a broker, but then also have a chat,

825
00:37:47,320 --> 00:37:50,000
Speaker 3: ask friends and family work out who they've been talking to.

826
00:37:50,160 --> 00:37:53,240
Speaker 3: Because to me, referral is the best source of finding someone.

827
00:37:53,920 --> 00:37:57,120
Speaker 2: Okay, And to round out today's show, V please give

828
00:37:57,200 --> 00:37:59,920
Speaker 2: us the scoop if we had to choose shares or

829
00:38:00,080 --> 00:38:03,680
Speaker 2: what property? Oh, if you had to choose, I think that's.

830
00:38:03,520 --> 00:38:06,960
Speaker 3: Really silly you choose. That's a terrible question to wrap

831
00:38:07,000 --> 00:38:10,760
Speaker 3: a show on Georgia. How awful. Let's not answer that. No. Actually,

832
00:38:10,840 --> 00:38:13,759
Speaker 3: I think it's really hard to question that because it's

833
00:38:13,760 --> 00:38:16,400
Speaker 3: personal preference. One is not better than the other. And

834
00:38:16,440 --> 00:38:18,279
Speaker 3: it frustrates me to think that people like, oh, should

835
00:38:18,320 --> 00:38:20,719
Speaker 3: I do this? All that, I don't know your values yet,

836
00:38:20,719 --> 00:38:22,359
Speaker 3: I don't know what you want to do. I don't

837
00:38:22,360 --> 00:38:23,960
Speaker 3: know what your life plan is. Do you want to

838
00:38:23,960 --> 00:38:25,920
Speaker 3: have six kids? Do you want to have no kids?

839
00:38:25,960 --> 00:38:26,080
Speaker 2: Like?

840
00:38:26,360 --> 00:38:29,560
Speaker 3: Who are you? What are your goals? Find an asset

841
00:38:29,560 --> 00:38:33,120
Speaker 3: that aligns to your goals, not purchase an asset because

842
00:38:33,120 --> 00:38:35,080
Speaker 3: you can get better than the other one. Because at

843
00:38:35,120 --> 00:38:37,000
Speaker 3: the end of the day, this is a long term commitment,

844
00:38:37,160 --> 00:38:39,719
Speaker 3: and if you have the right strategy in place, there

845
00:38:39,719 --> 00:38:41,799
Speaker 3: are lots of different ways to create long term wealth.

846
00:38:41,800 --> 00:38:42,920
Speaker 3: Full stop. End of stories.

847
00:38:43,120 --> 00:38:46,080
Speaker 2: Stunning. Okay, well, there is so much for us to

848
00:38:46,120 --> 00:38:48,439
Speaker 2: all take home today, guys. I think the main things

849
00:38:48,440 --> 00:38:49,600
Speaker 2: I've probably taken.

850
00:38:49,360 --> 00:38:52,319
Speaker 3: Away take home to your new investment property is that.

851
00:38:53,920 --> 00:38:57,400
Speaker 2: Stunning, stunning, She's good. So what I've taken away to

852
00:38:57,440 --> 00:39:01,000
Speaker 2: my home is that property is a great option because

853
00:39:01,000 --> 00:39:04,160
Speaker 2: of the potential for passive income and capital growth. But

854
00:39:04,200 --> 00:39:06,320
Speaker 2: you've got to watch out for capital gains tax But

855
00:39:06,400 --> 00:39:08,160
Speaker 2: you just got to expect it because that's coming for

856
00:39:08,239 --> 00:39:09,000
Speaker 2: you when you sell.

857
00:39:09,120 --> 00:39:10,960
Speaker 3: If you did a good job and you bought a

858
00:39:11,040 --> 00:39:13,720
Speaker 3: good property, you were gonna pay capital gains tax.

859
00:39:13,800 --> 00:39:14,080
Speaker 2: Correct.

860
00:39:14,120 --> 00:39:15,120
Speaker 3: That means you bought a good.

861
00:39:15,200 --> 00:39:18,200
Speaker 2: It's a good thing, good thing, good thing. Generally, houses

862
00:39:18,200 --> 00:39:20,680
Speaker 2: are better than apartments as an investment because of the

863
00:39:20,800 --> 00:39:23,520
Speaker 2: land and you can knock down, rebuild.

864
00:39:23,520 --> 00:39:26,080
Speaker 3: All that to say that apartments won't have good absolutely not.

865
00:39:26,920 --> 00:39:31,279
Speaker 2: And the final thing I learned was what negative gearing means.

866
00:39:30,280 --> 00:39:33,000
Speaker 3: It's still out. We'll make a really great graphic and

867
00:39:33,040 --> 00:39:36,399
Speaker 3: we'll put that in the Instagram this week. Are still

868
00:39:36,440 --> 00:39:37,239
Speaker 3: confused like.

869
00:39:37,239 --> 00:39:39,600
Speaker 2: Me, I'll check that one out. I think it's time

870
00:39:39,640 --> 00:39:40,040
Speaker 2: to leave.

871
00:39:39,880 --> 00:39:42,040
Speaker 3: It there there, okay, But just before we head off,

872
00:39:42,080 --> 00:39:45,279
Speaker 3: we'd like to acknowledge and pay respects to Australia's Aboriginal

873
00:39:45,320 --> 00:39:48,759
Speaker 3: and Torris Straight Islander people's. They're the traditional custodians of

874
00:39:48,840 --> 00:39:51,719
Speaker 3: the lands, the Wadaways and the sky's all across Australia.

875
00:39:52,040 --> 00:39:53,920
Speaker 3: We thank you for sharing and for curing on the

876
00:39:53,960 --> 00:39:56,279
Speaker 3: land which we are able to learn. We pay our

877
00:39:56,320 --> 00:39:59,080
Speaker 3: respects to elders past and present, and we share our

878
00:39:59,120 --> 00:40:01,000
Speaker 3: friendship and our kindness.

879
00:40:01,320 --> 00:40:04,120
Speaker 2: And don't forget guys that the advice shared on She's

880
00:40:04,160 --> 00:40:06,160
Speaker 2: on the Money is general in nature and does not

881
00:40:06,200 --> 00:40:10,320
Speaker 2: consider your individual circumstances. Now She's on the Money exists

882
00:40:10,360 --> 00:40:13,680
Speaker 2: purely for educational purposes and should not be relied upon

883
00:40:13,719 --> 00:40:16,759
Speaker 2: to make an investment or a financial decision. Absolutely not,

884
00:40:16,960 --> 00:40:20,520
Speaker 2: And we promise Victoria Divine is more talk.

885
00:40:20,600 --> 00:40:23,719
Speaker 3: She's still an authorized representative.

886
00:40:23,120 --> 00:40:27,040
Speaker 2: Still an authorized representative of Australia Pacific Funds Management Propriorly

887
00:40:27,080 --> 00:40:30,719
Speaker 2: Limited AFSL. Dammit, I tried to do it without looking.

888
00:40:33,320 --> 00:40:36,160
Speaker 3: Four six, three two five seven. Do you see that?

889
00:40:36,239 --> 00:40:37,120
Speaker 3: Closed my eyes for that?

890
00:40:37,520 --> 00:40:40,600
Speaker 2: Yep, AFSL three three nine one five one. I did

891
00:40:40,640 --> 00:40:44,040
Speaker 2: it too, but I looked first. That's really that impressive

892
00:40:44,520 --> 00:40:45,080
Speaker 2: back there.

893
00:40:45,440 --> 00:40:47,279
Speaker 3: So what else do we do.

894
00:40:47,320 --> 00:40:48,680
Speaker 2: At the end of the show, we say thank you

895
00:40:48,680 --> 00:40:50,960
Speaker 2: to everyone, thanks to Jess sitting in the room, the

896
00:40:51,000 --> 00:40:54,520
Speaker 2: big legend. She keeps us saying Track editing.

897
00:40:54,320 --> 00:40:57,200
Speaker 3: Not in the room because he's editing another podcast of ours.

898
00:40:57,239 --> 00:40:59,719
Speaker 2: And Beck who's hopefully having a beer on this.

899
00:41:00,160 --> 00:41:02,439
Speaker 3: No, she's having a bike ride right now. She said,

900
00:41:02,440 --> 00:41:03,759
Speaker 3: she's coming on a nice bike ride.

901
00:41:03,800 --> 00:41:05,520
Speaker 2: I hope she doesn't fall off and hurt her knee.

902
00:41:05,640 --> 00:41:09,360
Speaker 3: Anyway, that's enough from us, Today, we're going to Fonda

903
00:41:09,440 --> 00:41:09,759
Speaker 3: to have.

904
00:41:09,800 --> 00:41:11,000
Speaker 2: Our fish burritos.

905
00:41:11,080 --> 00:41:12,160
Speaker 3: All right, see you next week.

906
00:41:12,360 --> 00:41:13,000
Speaker 2: Bye guys.