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

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Speaker 1: woman and I'm here to acknowledge country t glennyan Ganya, Niana,

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Speaker 1: Kaka yah Ya, bin Ahaka Nian our gay In Nimbina,

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Speaker 1: yakarum jar Dominyama, domag Ithawakawaman, damon Imlan Bimba ban Gadabomba

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Speaker 1: in and now in wakah Ghana on yak rum jar Watnadaa. Hello,

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Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.

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Speaker 1: We thank, acknowledge and respect the Abiginal people's land that

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Speaker 1: we're gathering on today. Take pleasure in all the land

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Speaker 1: and respect all that you see. She's on the Money

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Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,

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Speaker 1: knowledge and resources for you to thrive.

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

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: that helps you turn big money goals into everyday realities.

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Speaker 3: If you've been quietly thinking I'm never going to own

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Speaker 3: a home unless I marry rich or I win the lottery,

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Speaker 3: my friends, this episode is going to be for you

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Speaker 3: because you don't need an inheritance You don't need a partner,

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Speaker 3: you don't need to earn six figures, and you might

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Speaker 3: not even need to have a whole twenty percent deposit

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Speaker 3: for your home. What you do need, though, is a

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Speaker 3: strategy and one that works to your reality. I'm Victory

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Speaker 3: Devine and you may be wondering, well, where's Beck today,

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Speaker 3: my friends, She's off gallivanting. But don't worry, because you

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Speaker 3: are in very good hands because today I am joined

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Speaker 3: by miss Jesse Grici, who's currently on her own journey

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Speaker 3: to buy a home without the bank of mum and dad. Jess,

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Speaker 3: welcome back to what I would say is your own show.

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Speaker 3: Thank you.

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Speaker 4: At this point, why not think about any opportunity to

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Speaker 4: make it all about me.

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Speaker 3: Any opportunity for me to get you on the show

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Speaker 3: and talk about property. I feel it works really well

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Speaker 3: because like, you're the one that's in the nitty gritty

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Speaker 3: of it at the moment, and I couldn't think of

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Speaker 3: anyone better to do this episode with me, because you're

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Speaker 3: not only doing it without the help of your parents,

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Speaker 3: but you're buying solo without the help of your partner

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Speaker 3: as well.

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Speaker 2: So tell me about that.

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Speaker 3: Yeah.

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Speaker 4: So, I feel like most people probably know this story

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Speaker 4: by now, but my partner and I were just in

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Speaker 4: very different financial situations. I've been working full time since

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Speaker 4: I was eighteen. He's been in and out of a

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Speaker 4: few different university courses, kind of figuring out his life path,

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Speaker 4: And so that meant that I had the benefit of

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Speaker 4: time on my side where I've kind of gotten myself

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Speaker 4: into debt, gotten myself out of debt. So you've done

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Speaker 4: a house deposit, doesn't journey? Yeah, before he even really

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Speaker 4: entered the workforce properly full time, so I was in

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Speaker 4: a financial position to purchase and he wasn't. And also

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Speaker 4: I think for me, I really like the idea of

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Speaker 4: having my own asset. The sense of security that that

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Speaker 4: will give me will be really significant, and hopefully, you know,

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Speaker 4: I buy the first house, we live in that together,

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Speaker 4: and then eventually, when he's ready, we buy our forever

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Speaker 4: home together exactly.

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Speaker 3: And I feel like for those of you who might

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Speaker 3: not have heard, you know, Jess's journey or like what

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Speaker 3: her plan is before, I feel like it just really

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Speaker 3: proves that every single person's path is very different to

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Speaker 3: home ownership, which is why getting clear on your own

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Speaker 3: why is the first tip that I have put on

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Speaker 3: my list for today. You need to know why do

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Speaker 3: you actually want to have a forever home?

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Speaker 1: Jess.

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Speaker 3: You've talked a lot about the importance of having a

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Speaker 3: forever home for security and like, you know, you want

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Speaker 3: to make sure that you've got your own back, or

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Speaker 3: like some people are looking for, you know, a finel

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Speaker 3: home because they want to get their foot in the

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Speaker 3: door or their you know, foot on the ladder or

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Speaker 3: whatever we're calling it. We need to ask ourselves is

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Speaker 3: your timeline tied to like specific life goals, like maybe

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Speaker 3: you want to start a family in like five years,

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Speaker 3: or you're planning to move into the country. You need

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Speaker 3: to ask yourself are you in it for capital growth?

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Speaker 3: Like are you looking at this as an investment? Is

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Speaker 3: this an asset class? So should we be looking at

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Speaker 3: potentially rent vesting instead? Like if that's the case, where

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Speaker 3: can we get the biggest bang for our buck? And

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Speaker 3: are you only considering it And this is a big one.

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Speaker 3: Are you only considering home ownership because society has been

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Speaker 3: telling you that that's a good idea in something that

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Speaker 3: you should do. Like I know, growing up, a part

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Speaker 3: of my narrative that i'd made up in my head

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Speaker 3: by the way, I was probably going to be married.

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Speaker 2: I would have had two kids by the.

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Speaker 3: Time I was twenty five in my head, right, because

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Speaker 3: like twenty five, Oh, my god's so old. Yes, and

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Speaker 3: I would have owned my own home. But that's because

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Speaker 3: ingrained in me was the Greatestralian dream. Everyone does that, right,

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Speaker 3: It's kind of like a ride of passage.

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Speaker 2: Yeah, and that's not the reality anymore.

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Speaker 3: So I think we really need to think about our goals,

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Speaker 3: because yeah, buying a home's massive, but it doesn't mean

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Speaker 3: it's always going to put you in the best possible

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Speaker 3: financial position. Like I've done so many projections when I

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Speaker 3: was a financial advisor for clients that said, actually, you're

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Speaker 3: in a better financial position long term if you just

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Speaker 3: keep renting and we invest this money somewhere else or

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Speaker 3: we do something else, because they were like, oh, yeah,

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Speaker 3: I don't actually care about this, and I was like, right, well,

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Speaker 3: in that case, let's look at all of our options.

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Speaker 3: So it's important to understand your why because from my perspective,

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Speaker 3: that is going to shape literally everything that you do.

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Speaker 3: It's going to shape your timeline, it's going to shape

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Speaker 3: your budget, it's going to shape the strategy that you

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Speaker 3: implement where we're buying what that actually looks like. Yes,

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Speaker 3: you are so type A and I love it. But

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Speaker 3: that means that you have some very specific property goals.

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Speaker 3: Like you and I were talking yesterday about this potential

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Speaker 3: block of land that you're going to buy, and you

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Speaker 3: were like, look, I did tell them that I would

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Speaker 3: have either east or west facing, but nothing else. And

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Speaker 3: I was like, oh my god, you are so specific,

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Speaker 3: So tell me what are your property goals?

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Speaker 4: So it's not going to be forever home because I'm

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Speaker 4: very aware of the fact that buying by myself, I

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Speaker 4: only have so much money available to me, right and

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Speaker 4: so unfortunately that means I can't build my ultimate dream home,

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Speaker 4: which is okay. So I'm really I've kind of done

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Speaker 4: a lot of work on what am I non negotiables,

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Speaker 4: What am I not willing to compromise on, Versus what

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Speaker 4: am I happy to compromise on. For me, orientation of

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Speaker 4: the block is a big one because I freelancing content creation.

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Speaker 4: You know, It's also just a big thing for my

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Speaker 4: mood as someone who suffers from sad, so it's having

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Speaker 4: as much light in there as possible is a really

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Speaker 4: big thing for me. And east and west are the

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Speaker 4: two optimal positions.

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Speaker 3: Where was it was?

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Speaker 2: Yeah, good memory.

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Speaker 4: High ceilings, I've said before, is another one because I

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Speaker 4: am going to have to buy a smaller block that

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Speaker 4: fits within my budget. High ceilings makes the space feel bigger,

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Speaker 4: let's more light in that sort of thing. And the

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Speaker 4: other thing that I was looking at a lot is

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Speaker 4: I'm looking in a really specific area. It's the area

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Speaker 4: that I currently live. Location Wise, it could not be

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Speaker 4: more ideal for my lifestyle. But there's also, from my perspective,

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Speaker 4: really good opportunity for capital growth because of the location

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Speaker 4: it's in.

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Speaker 3: And you're getting lots of infrastructure in that instruction is

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Speaker 3: as well.

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Speaker 2: Exactly right.

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Speaker 4: So I think without getting too specific because I don't

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Speaker 4: want to give away.

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Speaker 2: Where I hopefully sure what was the address you were

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Speaker 2: looking at it.

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Speaker 4: But there's lots of things happening that I think will

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Speaker 4: make it really appealing to potential buyers in the future

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Speaker 4: when I do eventually move on from the process.

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Speaker 3: So you've got to have a think about, like, how

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Speaker 3: are you going to pitch this to somebody else, like

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Speaker 3: if you were selling their property. Is it close to schools,

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Speaker 3: is it close to public transport, Like, what does that

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Speaker 3: actually look like? Because sometimes we can get our hearts

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Speaker 3: set on something. Right, We've got this client at the

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Speaker 3: moment who is trying to sell a property to move

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Speaker 3: into their next one. But they bought their dream home

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Speaker 3: in the country stunning but really niche, and it's been

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Speaker 3: on the market for two years, so it's been really

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Speaker 3: hard for them to sell, and like, that's okay, we

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Speaker 3: kind of anticipated this, But what does that look like

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Speaker 3: for you? Is that something that you're going to have

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Speaker 3: to consider? And I guess once you've got your like

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Speaker 3: why am I buying?

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Speaker 2: What would that actually look like?

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Speaker 3: I think that's you know where we actually do have

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Speaker 3: to do the zoom out and we do have to

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Speaker 3: do the what I'm going to call like a market

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Speaker 3: reality check. You need to know what your goal is

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Speaker 3: actually going to cost you because, like Jess, I think

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Speaker 3: if I sat you down, maybe like even five years ago,

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Speaker 3: when we started talking about, like you saving for your

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Speaker 3: home deposit, we probably had these really big wish list

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Speaker 3: of things that we want. Yeah, I want a really

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Speaker 3: big block, I want a really big house, like all

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Speaker 3: of these things that I think we all really want.

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Speaker 3: But that doesn't mean that that's going to be our reality.

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Speaker 3: That doesn't mean that that's what we're going to be

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Speaker 3: able to afford. So what we want to do is

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Speaker 3: get super familiar not just with the area, but with

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Speaker 3: the market. And this isn't just about like doom scrolling,

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Speaker 3: because I doom scroll relyrealestate dot com dot I don't

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Speaker 3: know about you at midnight with a glass of wine.

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Speaker 3: It's about let's look at what our goals are going

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Speaker 3: to cost us. Let's look at very clean sold prices,

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Speaker 3: not asking crisis. What is property moving for? If you're

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Speaker 3: in it for an investment or capital growth? I want

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Speaker 3: you to start learning what makes a good property investment.

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Speaker 3: If you don't know, you need to know. We're not

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Speaker 3: buying an investment property without understanding what rental yield is, what.

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Speaker 2: It looks like for capital growth.

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Speaker 3: What it looks like for you know, tenancy does. How

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Speaker 3: much is that going to cost you? If you're going

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Speaker 3: to pay a real estate agent to manage your property,

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Speaker 3: how much is that? Do you understand? What is gentrification potential?

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Speaker 3: Are you buying in an area a bit like Jess

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Speaker 3: where you know that in the next ten years there's

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Speaker 3: going to be new schools, another hospital, things popping up

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Speaker 3: and you go, Okay, cool, I can see how this

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Speaker 3: might become a little bit more expensive.

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Speaker 2: What does that actually look like?

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Speaker 3: And Jess, you and I actually did another episode recently

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Speaker 3: and will put a link in the show note to

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Speaker 3: the episode about how to find your dream property. And

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Speaker 3: this is going to sound like a little bit like

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Speaker 3: I'm being a downer and I don't mean, but like

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Speaker 3: we don't just have to look at the property. We

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Speaker 3: actually have to get really real about our own numbers

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Speaker 3: as well. Yes, when you were starting to work out

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Speaker 3: okay I want to buy, what did you do to

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Speaker 3: work out what you could afford?

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Speaker 4: I mean, speak to a broker is probably the most

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Speaker 4: obvious they're going to be much so. But like what else, Yeah,

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Speaker 4: doing a detailed budget I think is a really good

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Speaker 4: You need to understand what are your bare bones living expenses,

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Speaker 4: like what does it cost you to exist? Because that

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Speaker 4: at the most extreme that you can cut back to.

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Speaker 4: I think because we've seen over the last maybe four years,

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Speaker 4: there's been so many ups and downs with interest rates,

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Speaker 4: and you know, at its peak there were people who

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Speaker 4: were having to sell because they couldn't afford to live

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Speaker 4: their life and make their mortgage repayments, So having a

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Speaker 4: really clear understanding of your budget, what you're spending, what

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Speaker 4: can you realistically pay towards a mortgage, and what could

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Speaker 4: you comfortably pay too, because just because you can live

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Speaker 4: off that bare bones doesn't mean that you want to

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Speaker 4: do that for the next you know, ten, fifteen, twenty years.

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Speaker 3: Yeah, it's like you could be when you said before,

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Speaker 3: talk to a mortgage broker, but you could sit down

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Speaker 3: and talk to a mortgage broker and they might go, Okay,

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Speaker 3: jess well you can borrow eight hundred thousand dollars And

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Speaker 3: you might go, oh, that's fantastic, But I've kind of

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Speaker 3: done my budget and I don't really want to afford

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Speaker 3: the repayments on eight hundred thousand dollars, Like my lifestyle

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Speaker 3: looks more like six hundred thousand dollars. And I think

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Speaker 3: it can be really exciting talking to a broker because

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Speaker 3: you go, oh my god, I didn't realize I could

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Speaker 3: borrow so much, and that sometimes happens, and then you

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Speaker 3: need to be really real do you actually want to

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Speaker 3: borrow that amount?

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Speaker 2: Because you know, the bank might say, Jessica, Ricky, you

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Speaker 2: can borrow a million dollars.

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Speaker 3: I must bear an ass but no, but the repayments

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Speaker 3: on that would be crippling. Absolutely, it would take up

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Speaker 3: all of your income and you wouldn't have any lifestyle.

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Speaker 3: And as much as I think we are so happy to,

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Speaker 3: I don't know, scrimp and save when we're getting our deposit,

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Speaker 3: do you want that to be the reality for the

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Speaker 3: next thirty years as well? Like I feel like we

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Speaker 3: just want to get our deposit and like we're willing

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Speaker 3: to make a million sacrifices. But then once you are

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Speaker 3: in the house, are you actually happy now you're here?

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Speaker 3: Now we've achieved the goal to just eat two minute

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Speaker 3: noodles every Friday night because we can't afford anything else.

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Speaker 4: Yeah, do you want to put furniture in the house? Although,

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Speaker 4: so we can sit on the ground. So it's yeah,

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Speaker 4: understanding that. Understanding your borrowing capacity too, because depending on

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Speaker 4: your circumstances, just because I can save three and a

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Speaker 4: half thousand dollars a month doesn't mean that a bank

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Speaker 4: will necessarily loan me a mortgage that would be three

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Speaker 4: and a half thousand dollars return. So understanding what that

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Speaker 4: borrowing capacity look can be really disappointing to absolutely, And

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Speaker 4: so you know there's schemes and grants and things, which

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Speaker 4: is I guess where your broker comes in to kind

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Speaker 4: of help you look at all of the options, understand

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Speaker 4: your serviceability, and also you know, checking in on all

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Speaker 4: of your just other financial health stuff. Do you have

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Speaker 4: debt that you want to pay down because that might

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Speaker 4: increase your borrowing capacity. Do you have day to day

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Speaker 4: spending or a credit score that you need to improve

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Speaker 4: because by improving your credit score, you might increase what

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Speaker 4: you can borrow from a bank of little things. But

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Speaker 4: I would say talking to a broker is probably the cleanest,

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Speaker 4: easiest way, so they can be really holistic in the

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Speaker 4: way they approach.

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Speaker 2: It with you.

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Speaker 3: Yeah. I don't think this is going to surprise anybody,

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Speaker 3: but as an ex financial advisor, when my husband and

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Speaker 3: I were sitting down to work out what we could

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Speaker 3: borrow for our first time we'd worked it out, we'd

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Speaker 3: spoken to a broker because even though I own a

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Speaker 3: mortgage brokerage, I don't do it myself. Actually have one

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Speaker 3: of our brokers do the work for me, because I'm like,

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Speaker 3: I don't want to just you know, do it myself

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Speaker 3: and then mess it up. They're better at it they

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Speaker 3: told me I could borrow more than what Steve and

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Speaker 3: I had like quote budgeted per month for our repayments,

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Speaker 3: which was a nice position to be in, but we

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Speaker 3: didn't want to do that because we had plans to

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Speaker 3: have a family, We had plans to have a wedding,

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Speaker 3: we had like all these other things that I was like,

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Speaker 3: so it's not a debt, like you know, it's not

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Speaker 3: a repayment now, but like what would it look like

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Speaker 3: if we had a baby?

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Speaker 2: Yeah, do we want to be able to live off

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Speaker 2: one income? Still? Like you know, what would maternity leave

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Speaker 2: look like? What would paternity leave?

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Speaker 3: You know what I mean? Like, there were just lots

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Speaker 3: of conversations to be had and it can be I

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Speaker 3: don't know, boring and confronting, but like do all of that.

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Speaker 3: So you're putting yourself in the best possible position. So

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Speaker 3: just next step, we're going to be aligning our goals

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Speaker 3: with being realistic. So I guess we've been kind of

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Speaker 3: like hinting towards that, like, oh, you can borrow a

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Speaker 3: million dollars, but maybe you shouldn't. Yeah, if your numbers

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Speaker 3: don't line up with the dream, So like you go

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Speaker 3: to a mortgage broker, and you've in your head been like, okay, cool,

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Speaker 3: I've saved twenty percent of a million dollar mortgage, which

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Speaker 3: some people do, right, so that would be two hundred

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Speaker 3: thousand dollars to save two hundred thousand dollars. My goodness,

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Speaker 3: that is so much money, Like one quite unrelatable. Please

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Speaker 3: don't come at me for that, but like quite unrelatable.

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Speaker 3: But like, let's say you've done that because you and

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Speaker 3: your partner, you've sat down. Jess and I always sat down.

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Speaker 3: We're like, we're going to do this week and sacrifice

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Speaker 3: and scrimp and save, and we get to that two

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Speaker 3: hundred thousand dollar mark and then we go see a broker.

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Speaker 3: They go, that's great, we could lend you, Ah, we

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Speaker 3: could lend you eight hundred thousand dollars. No, no, no,

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Speaker 3: I've got a twenty percent deposit for a million dollar home.

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Speaker 1: And they go, no, no, no, no.

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Speaker 3: Even though you have that deposit, it's not just the

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Speaker 3: twenty percent. It's like, we looked at your incomes, and

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Speaker 3: with your incomes, you can only service eight hundred thousand dollars.

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Speaker 3: So I think for me, that's where you want to

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Speaker 3: have conversations earlier around well what would our budget be,

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Speaker 3: What does our serviceability look like like?

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Speaker 2: What would if we had twenty percent? What would the

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Speaker 2: bank lend us?

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Speaker 3: Now it can be heartbreaking, and that's why I'm like, hey, here,

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Speaker 3: can we work that out early so that you don't

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Speaker 3: save a full two hundred And this is obviously unrealistic,

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Speaker 3: but like you know what I'm getting at, Yeah, you

339
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Speaker 3: don't save two hundred grand and then go to the

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Speaker 3: bank and be like knock knock and they go, haha, bye,

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Speaker 3: We're shut. You need to make sure that if your

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Speaker 3: numbers aren't aligning with your dreams, we can either adjust

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Speaker 3: our dream or.

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Speaker 2: Build a bridge to get there.

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Speaker 3: So, if your dream sub is like out of reach

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Speaker 3: and you still want to buy property, could we potentially

347
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Speaker 3: like rent best you could go live in the suburb,

348
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Speaker 3: but we could buy a property somewhere else and lise

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Speaker 3: it out.

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Speaker 2: So we're still on the property ladder.

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Speaker 3: Are we looking at a suburb that is maybe a

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Speaker 3: little bit further out and is cheaper but still gives

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Speaker 3: you the lifestyle that you're looking for.

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Speaker 2: Would we look at maybe lower priced properties.

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Speaker 3: So that we could access government schemes Because on these

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Speaker 3: government schemes like the first home owners grant.

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Speaker 2: They are capped.

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Speaker 3: Different states and territories have different amounts, but they are capped.

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Speaker 3: So do we realign to just buying under that so

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Speaker 3: that we still like kind of slip into having some

361
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Speaker 3: you know, some nice subsidies we don't have to pay

362
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Speaker 3: our stamp duty or we might get a little bonus,

363
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Speaker 3: and then once we're happy, we can talk about moving

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Speaker 3: on to having a strategy. Because it's so nice to

365
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Speaker 3: have dreams of plans and conversations like this, Ess, But

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Speaker 3: then we need to get into strategy, and you and

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Speaker 3: I are going to do that right after this break.

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00:17:03,760 --> 00:17:06,200
Speaker 3: All right, Jess, we are back and I don't know

369
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Speaker 3: if this is the juicy stuff or the boring stuff,

370
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Speaker 3: but I'm going to get into it.

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Speaker 2: And that is the strategy. Jess.

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Speaker 3: I want to ask, how did you work out your

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Speaker 3: deposit strategy?

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Speaker 4: So I kind of did the math shocking for me

375
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Speaker 4: is someone who hates math. But you've got to do

376
00:17:23,040 --> 00:17:25,399
Speaker 4: what you've got to do, absolutely, so you kind of

377
00:17:25,440 --> 00:17:27,320
Speaker 4: got to work backwards. You've got to go You've got

378
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Speaker 4: to do all that pre work that we were talking

379
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Speaker 4: about before, do your research, figure out what you can borrow.

380
00:17:32,400 --> 00:17:35,680
Speaker 4: Look at you know, what is achievable for you in

381
00:17:35,840 --> 00:17:37,600
Speaker 4: terms of what more you do you want to take on,

382
00:17:38,040 --> 00:17:40,000
Speaker 4: and then go okay, well, what deposit do I need?

383
00:17:40,160 --> 00:17:42,399
Speaker 4: Are there any schemes that I qualify for? You know,

384
00:17:42,480 --> 00:17:44,480
Speaker 4: there's the schemes that allow you to purchase with a

385
00:17:44,560 --> 00:17:46,360
Speaker 4: ten percent deposit and say have a twenty and still

386
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Speaker 4: avoid l AMI. There are all of these different options

387
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Speaker 4: that may or may not be available to you that

388
00:17:51,800 --> 00:17:55,119
Speaker 4: you don't necessarily have to have that traditional twenty percent deposit.

389
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Speaker 4: So work out what kind of deposit you would need

390
00:17:58,359 --> 00:18:02,080
Speaker 4: and then work backwards from there. So if you want

391
00:18:02,119 --> 00:18:04,160
Speaker 4: to buy in the next two years, but you can't

392
00:18:04,160 --> 00:18:06,560
Speaker 4: save your deposit in that time, you go, okay, well

393
00:18:06,600 --> 00:18:08,760
Speaker 4: we might need to readjust that timeline. You need to

394
00:18:08,800 --> 00:18:12,040
Speaker 4: be realistic because, especially in this cost of living crisis,

395
00:18:12,080 --> 00:18:14,119
Speaker 4: you can only work with what you've got, and so

396
00:18:14,280 --> 00:18:16,480
Speaker 4: sometimes that does mean exactly like me, like, you've just

397
00:18:16,520 --> 00:18:18,520
Speaker 4: got to push the timeline out and keep looking and

398
00:18:18,600 --> 00:18:22,200
Speaker 4: keep saving. I would also say remember the factor in

399
00:18:22,560 --> 00:18:24,480
Speaker 4: the upfront costs.

400
00:18:24,760 --> 00:18:27,800
Speaker 3: And that they're so hard, because sometimes if you've gotten

401
00:18:27,880 --> 00:18:30,600
Speaker 3: so far down the process, you're like, wait, what there

402
00:18:30,640 --> 00:18:32,880
Speaker 3: are so many I don't want to say hidden because

403
00:18:32,880 --> 00:18:34,840
Speaker 3: they're not hidden, but costs that you don't consider.

404
00:18:35,080 --> 00:18:37,600
Speaker 4: So if you don't qualify for a stamp duty exemption,

405
00:18:37,720 --> 00:18:42,040
Speaker 4: stamp duty is so much money. Conveyancing, getting people to

406
00:18:42,119 --> 00:18:46,159
Speaker 4: review contracts, building and pest inspection costs, moving costs.

407
00:18:45,840 --> 00:18:46,679
Speaker 2: And moving costs.

408
00:18:46,760 --> 00:18:49,320
Speaker 3: Get me because like you forget and then you've like

409
00:18:49,480 --> 00:18:51,680
Speaker 3: spent all your money on your stamp duty, and like

410
00:18:51,760 --> 00:18:54,680
Speaker 3: you've paid your conveyancer, and then settlement happens and you're like,

411
00:18:54,760 --> 00:18:57,000
Speaker 3: I'm so excited, and then you go, oh, get a

412
00:18:57,080 --> 00:18:58,200
Speaker 3: quote for a moving vehicle.

413
00:18:58,640 --> 00:18:59,880
Speaker 2: You're like, what do you what do you mean? That's

414
00:18:59,880 --> 00:19:01,880
Speaker 2: a thousand dollars. It's so exciting.

415
00:19:02,640 --> 00:19:04,879
Speaker 4: So on top of your deposit to just pay for

416
00:19:05,000 --> 00:19:07,120
Speaker 4: the house, you also need a lump some of cash

417
00:19:07,200 --> 00:19:08,680
Speaker 4: to help get you across the line.

418
00:19:08,720 --> 00:19:11,200
Speaker 2: But all of those other things too. A broker will

419
00:19:11,359 --> 00:19:12,000
Speaker 2: do that for you.

420
00:19:12,440 --> 00:19:13,920
Speaker 3: So a broker is always going to give you a

421
00:19:13,960 --> 00:19:16,160
Speaker 3: little budget that says, okay, cool, this is what stamp

422
00:19:16,240 --> 00:19:19,639
Speaker 3: duty on that property would look like. Conveyancing, costs, inspections, like,

423
00:19:20,000 --> 00:19:23,639
Speaker 3: they will absolutely let you know. So if you're worried

424
00:19:23,680 --> 00:19:25,960
Speaker 3: about like, oh, what have I not taken into consideration.

425
00:19:26,119 --> 00:19:27,040
Speaker 3: Your broker is going to know.

426
00:19:27,320 --> 00:19:28,800
Speaker 4: Yeah, and they should be able to talk you through

427
00:19:28,840 --> 00:19:30,640
Speaker 4: what all of that looks like. And then once we've

428
00:19:30,640 --> 00:19:32,919
Speaker 4: got those two kinds of things, once we know how

429
00:19:33,000 --> 00:19:34,600
Speaker 4: much of a deposit we will need to get into

430
00:19:34,640 --> 00:19:37,399
Speaker 4: the property and what our timeline looks like, you're pretty

431
00:19:37,480 --> 00:19:40,159
Speaker 4: much just dividing it right. You're going, okay, lady X deposit.

432
00:19:40,320 --> 00:19:42,080
Speaker 4: Let's say I need the two hundred thousand dollars and

433
00:19:42,160 --> 00:19:44,000
Speaker 4: I want to do it in two years. How much

434
00:19:44,080 --> 00:19:45,440
Speaker 4: do I need to save her month? And then you

435
00:19:45,520 --> 00:19:47,119
Speaker 4: might go, oh, I got two hundred thousand dollars in

436
00:19:47,119 --> 00:19:49,240
Speaker 4: two years. It's kind of insane and that's actually not

437
00:19:49,359 --> 00:19:52,400
Speaker 4: going to happen here me. And then we readjust the timeline.

438
00:19:52,440 --> 00:19:54,440
Speaker 4: So see, you've got to work out what's practical for you.

439
00:19:55,000 --> 00:19:58,439
Speaker 4: I think having set a realistic goal too, because it's

440
00:19:58,560 --> 00:20:00,320
Speaker 4: easy and good to go, oh, I can say seventy

441
00:20:00,359 --> 00:20:02,880
Speaker 4: five percent of my income, no problems. If you're doing

442
00:20:02,920 --> 00:20:05,959
Speaker 4: that for five years, it can be really tough if

443
00:20:05,960 --> 00:20:08,960
Speaker 4: you have to constantly be making sacrifices. So think about

444
00:20:09,160 --> 00:20:12,840
Speaker 4: what's doable for you, what works with your lifestyle, with

445
00:20:12,960 --> 00:20:16,240
Speaker 4: your budgeted spending for just existing in the world. Yeah,

446
00:20:16,400 --> 00:20:18,480
Speaker 4: because I think as well, because it can take so

447
00:20:18,600 --> 00:20:21,160
Speaker 4: long now to save a deposit. If you're not realistic

448
00:20:21,200 --> 00:20:23,600
Speaker 4: with yourself, it can be really disheartening and it can

449
00:20:23,640 --> 00:20:25,560
Speaker 4: feel like you're just swimming up here constantly.

450
00:20:25,600 --> 00:20:27,439
Speaker 3: And so that's why I keep saying things like, oh,

451
00:20:27,480 --> 00:20:29,760
Speaker 3: I don't need to be a downer, but because I

452
00:20:29,880 --> 00:20:33,359
Speaker 3: need to be realistic. Yeah, but it can feel like trash.

453
00:20:33,520 --> 00:20:35,720
Speaker 4: Absolutely, So set yourself up for success and if we

454
00:20:35,840 --> 00:20:38,679
Speaker 4: can shorten that timeline, great, But I think give yourself

455
00:20:38,760 --> 00:20:39,439
Speaker 4: some room to.

456
00:20:39,560 --> 00:20:41,480
Speaker 2: Breathe, to get one hundred percent.

457
00:20:41,560 --> 00:20:44,960
Speaker 3: And I think we always think about the destination and

458
00:20:45,119 --> 00:20:48,400
Speaker 3: forget that maybe we should enjoy the journey as well. Yeh.

459
00:20:48,800 --> 00:20:51,000
Speaker 3: I would much prefer it to take you another year.

460
00:20:51,119 --> 00:20:53,120
Speaker 3: But you've had like a banger of a few years

461
00:20:53,160 --> 00:20:55,359
Speaker 3: as opposed to you've scrimped and saved, and you feel

462
00:20:55,400 --> 00:20:58,400
Speaker 3: like you're just drowning. Like that's not fun for anybody.

463
00:20:58,680 --> 00:21:02,320
Speaker 3: And I guess the good is, once you've done all

464
00:21:02,400 --> 00:21:05,239
Speaker 3: of those hard parts and you've built the plan, there

465
00:21:05,280 --> 00:21:07,720
Speaker 3: are ways to speed it up. So let's have a

466
00:21:07,960 --> 00:21:12,080
Speaker 3: chat about how you could potentially turbocharge your savings strategy

467
00:21:12,160 --> 00:21:15,280
Speaker 3: and then get there sooner. So should we say, I

468
00:21:15,400 --> 00:21:18,639
Speaker 3: guess let's start with like my favorite mouthful, which is

469
00:21:18,920 --> 00:21:20,879
Speaker 3: the first time super Cider scheme. It just rolls off

470
00:21:20,880 --> 00:21:24,760
Speaker 3: the tongue, just rolls off the tug. Jess you've capped

471
00:21:24,800 --> 00:21:27,320
Speaker 3: that out. You've maxed out your first time super Saviors scheme.

472
00:21:27,600 --> 00:21:29,399
Speaker 3: Can you tell us how you did that?

473
00:21:29,560 --> 00:21:32,159
Speaker 2: What did that look like? Why did you do that?

474
00:21:32,760 --> 00:21:32,879
Speaker 3: Well?

475
00:21:32,920 --> 00:21:34,080
Speaker 2: I did it because you told me to.

476
00:21:34,640 --> 00:21:38,280
Speaker 3: No, no, no, sorry, backtrack. I am an ex financial advisor.

477
00:21:38,280 --> 00:21:40,639
Speaker 3: I would never give you that advice, Jessica. No, you

478
00:21:40,760 --> 00:21:43,040
Speaker 3: mean I showed you it and you said, wow, that's

479
00:21:43,080 --> 00:21:45,160
Speaker 3: such a good idea. I off my own back, would

480
00:21:45,160 --> 00:21:47,800
Speaker 3: absolutely love to do that, Victoria, exactly right.

481
00:21:47,840 --> 00:21:49,560
Speaker 2: But it is a really great scheme.

482
00:21:49,680 --> 00:21:52,760
Speaker 4: So it allows you to put your money into your

483
00:21:52,800 --> 00:21:56,440
Speaker 4: superannuation fund and take advantage of the tax rate that

484
00:21:56,560 --> 00:21:57,400
Speaker 4: exists within super.

485
00:21:57,480 --> 00:22:01,120
Speaker 3: So that's fifteen percent, and most people listening to this podcast,

486
00:22:01,119 --> 00:22:03,080
Speaker 3: they're going to have a thirty percent tax rate, so

487
00:22:03,160 --> 00:22:06,359
Speaker 3: that's half off. Correct money win? Is that basically like

488
00:22:06,520 --> 00:22:07,640
Speaker 3: legal money laundry?

489
00:22:07,920 --> 00:22:10,360
Speaker 2: I think so potentially it's really nice.

490
00:22:10,400 --> 00:22:12,879
Speaker 4: I made post tax contributions, so because my money had

491
00:22:12,920 --> 00:22:14,960
Speaker 4: already been taxed before it got paid to me. I

492
00:22:15,000 --> 00:22:17,719
Speaker 4: would just transfer from my bank account into my superannuation

493
00:22:17,880 --> 00:22:20,560
Speaker 4: fund and at tax time I would let my account

494
00:22:20,560 --> 00:22:21,639
Speaker 4: to know it or you can put it in when

495
00:22:21,680 --> 00:22:23,520
Speaker 4: you do your tax on my GAV and I would

496
00:22:23,560 --> 00:22:25,920
Speaker 4: then get fifteen percent of that money back, which was

497
00:22:26,400 --> 00:22:27,560
Speaker 4: it felt like free money.

498
00:22:27,640 --> 00:22:30,560
Speaker 2: It was does feel like free money, because that's kind.

499
00:22:30,440 --> 00:22:31,080
Speaker 4: Of what it is.

500
00:22:31,400 --> 00:22:33,280
Speaker 2: Yeah, so it's kind of for savings.

501
00:22:33,359 --> 00:22:37,000
Speaker 4: You're paying potentially fifty percent or more less tax on

502
00:22:37,400 --> 00:22:39,440
Speaker 4: you know, the money that you're getting. You can put

503
00:22:39,600 --> 00:22:43,240
Speaker 4: a maximum of fifteen thousand dollars in per financial year,

504
00:22:43,600 --> 00:22:45,879
Speaker 4: and you can contribute up to a total amount of

505
00:22:45,960 --> 00:22:50,439
Speaker 4: fifty thousand dollars, so if you wanted to, you could contribute.

506
00:22:50,200 --> 00:22:52,320
Speaker 3: To your late rich rich You've got like fifty thousand

507
00:22:52,320 --> 00:22:53,800
Speaker 3: dollars sitting in your first time supersize.

508
00:22:54,119 --> 00:22:54,960
Speaker 2: No, it's lovely.

509
00:22:55,840 --> 00:22:58,240
Speaker 4: It's really great because you can also withdraw one hundred

510
00:22:58,240 --> 00:23:00,800
Speaker 4: percent of the non concessional contribution, so the money you

511
00:23:00,880 --> 00:23:05,000
Speaker 4: put in, but also eighty five percent of the associated earnings.

512
00:23:05,200 --> 00:23:06,879
Speaker 3: So people, it's been there a while and it's just

513
00:23:06,960 --> 00:23:09,040
Speaker 3: been banking up and maybe we got like a ten

514
00:23:09,119 --> 00:23:11,760
Speaker 3: percent return last year on the Australian share market.

515
00:23:12,160 --> 00:23:13,920
Speaker 2: Where's that going, jess your back pocket?

516
00:23:14,119 --> 00:23:16,399
Speaker 4: It's going right into my house deposit fund. And it

517
00:23:16,520 --> 00:23:18,760
Speaker 4: is a thank you so much. We needed that little boost.

518
00:23:18,880 --> 00:23:21,480
Speaker 4: So I would really recommend looking into it. We've said before,

519
00:23:21,680 --> 00:23:24,280
Speaker 4: if you're planning on purchasing soon, look at the timeline

520
00:23:24,320 --> 00:23:26,879
Speaker 4: in terms of financial year, because the contribution is per

521
00:23:27,000 --> 00:23:31,359
Speaker 4: financial year. Theoretically you could contribute, you know, once in

522
00:23:31,760 --> 00:23:33,120
Speaker 4: June and then once in July.

523
00:23:33,480 --> 00:23:36,080
Speaker 3: Yeah, technically, and I mean this is going to drop

524
00:23:36,160 --> 00:23:38,760
Speaker 3: after that. I mean it's July now while we're recording this.

525
00:23:39,440 --> 00:23:43,480
Speaker 3: But if you're planning on buying next July, it's the

526
00:23:43,720 --> 00:23:46,240
Speaker 3: end of July. You could drop it in now and

527
00:23:46,320 --> 00:23:49,200
Speaker 3: then wait and then drop it in in July and

528
00:23:49,280 --> 00:23:50,600
Speaker 3: then pull it straight back out.

529
00:23:50,840 --> 00:23:53,640
Speaker 2: But we can't give tax advice. We definitely can't.

530
00:23:53,680 --> 00:23:55,960
Speaker 4: But if we're keeping in mind, because I think that

531
00:23:56,200 --> 00:23:58,440
Speaker 4: like that gives you such a huge advantage because that's

532
00:23:58,480 --> 00:24:01,080
Speaker 4: fifteen percent more that you could put straight back into your.

533
00:24:01,040 --> 00:24:02,399
Speaker 2: Fund, one hundred percent.

534
00:24:02,520 --> 00:24:06,640
Speaker 3: And I think just the idea that it's out of sight,

535
00:24:06,720 --> 00:24:08,880
Speaker 3: out of mind is also quite helpful for first home

536
00:24:08,920 --> 00:24:11,800
Speaker 3: buyers because I don't know about you. No, actually I

537
00:24:11,920 --> 00:24:13,879
Speaker 3: do know about you. I know you wouldn't do this,

538
00:24:14,080 --> 00:24:17,200
Speaker 3: But I personally am really good at dipping into my

539
00:24:17,280 --> 00:24:20,680
Speaker 3: savings if they're easily accessible. It's kind of like them

540
00:24:20,760 --> 00:24:24,280
Speaker 3: being locked away so that you can't touch your home deposit,

541
00:24:24,440 --> 00:24:27,760
Speaker 3: which feels really nice. And I mean, for most of us,

542
00:24:28,119 --> 00:24:31,920
Speaker 3: saving fifteen thousand dollars a year is honestly capping out

543
00:24:31,960 --> 00:24:34,639
Speaker 3: what we can save. So like, yes, there's caps on

544
00:24:34,720 --> 00:24:37,240
Speaker 3: how much you can contribute per financial year. And I

545
00:24:37,320 --> 00:24:39,480
Speaker 3: remember talking to you and not giving you advice, but

546
00:24:40,119 --> 00:24:42,960
Speaker 3: talking to you about your options with the First Home

547
00:24:43,000 --> 00:24:46,400
Speaker 3: Super Saviors scheme, and you'd actually saved up a heap

548
00:24:46,440 --> 00:24:48,880
Speaker 3: in your bank account. Yeah, and so you were making

549
00:24:49,000 --> 00:24:51,960
Speaker 3: lump some contributions and kind of like taking the money

550
00:24:52,000 --> 00:24:54,359
Speaker 3: you'd already saved, popping it into the First Home Super

551
00:24:54,440 --> 00:24:57,080
Speaker 3: Saviors scheme to then get the tax back at a

552
00:24:57,200 --> 00:24:59,439
Speaker 3: later date, which ended up being a money win.

553
00:24:59,520 --> 00:25:01,200
Speaker 2: And I think a lot of people think, oh.

554
00:25:01,119 --> 00:25:03,600
Speaker 3: Well, I didn't use it from the start, No, you

555
00:25:03,640 --> 00:25:05,960
Speaker 3: can just use it now, Like I think that's the

556
00:25:06,040 --> 00:25:07,160
Speaker 3: benefit of it as well.

557
00:25:07,320 --> 00:25:08,159
Speaker 2: I totally agree.

558
00:25:08,480 --> 00:25:10,360
Speaker 4: Now the next one gets a bit of a bad rap,

559
00:25:10,520 --> 00:25:12,600
Speaker 4: and I know that a lot of people really want

560
00:25:12,680 --> 00:25:13,119
Speaker 4: to avoid it.

561
00:25:13,200 --> 00:25:14,800
Speaker 2: I'm also one of those people.

562
00:25:14,920 --> 00:25:17,320
Speaker 4: I'm not going to lie to you, but for everyone

563
00:25:17,400 --> 00:25:19,639
Speaker 4: at home, can you explain a little bit about l

564
00:25:19,640 --> 00:25:20,440
Speaker 4: am I. Okay?

565
00:25:20,520 --> 00:25:23,040
Speaker 3: So, l am I is something that our community seem

566
00:25:23,119 --> 00:25:25,240
Speaker 3: to think is the devil, and I would like to

567
00:25:25,320 --> 00:25:28,200
Speaker 3: let you know that it is a really good tool

568
00:25:28,320 --> 00:25:32,440
Speaker 3: in some aspects or for some people. It stands for

569
00:25:32,560 --> 00:25:35,680
Speaker 3: Lenda's Mortgage insurance, and it's an insurance that you pay

570
00:25:35,720 --> 00:25:37,920
Speaker 3: that has nothing to do with protecting you, jess That

571
00:25:37,960 --> 00:25:40,200
Speaker 3: doesn't protect you at all, which is why I think

572
00:25:40,240 --> 00:25:43,160
Speaker 3: a lot of people hate the idea of it, because

573
00:25:43,600 --> 00:25:45,880
Speaker 3: if you pay el am I, you are protecting the bank,

574
00:25:46,000 --> 00:25:49,920
Speaker 3: not yourself. And the reason you're paying that is it's

575
00:25:49,920 --> 00:25:52,879
Speaker 3: an insurance that the bank says you don't have a

576
00:25:52,960 --> 00:25:56,440
Speaker 3: full twenty percent deposit, Jessica. So because you don't get

577
00:25:56,480 --> 00:25:59,960
Speaker 3: any LMI waivers, there's no benefits here. We're going to

578
00:26:00,080 --> 00:26:01,680
Speaker 3: make you take out this insurance and you're going to

579
00:26:01,720 --> 00:26:03,920
Speaker 3: pay for this insurance because if you can't pay for

580
00:26:04,000 --> 00:26:07,119
Speaker 3: your home loan, the insurer will, and that's a good

581
00:26:07,200 --> 00:26:09,480
Speaker 3: deal for us. But you're the one that kind of

582
00:26:09,520 --> 00:26:11,960
Speaker 3: pays for the insurance on behalf of the bank. Now,

583
00:26:12,640 --> 00:26:16,720
Speaker 3: in Australia, l AMI is usually payable and there's lots

584
00:26:16,760 --> 00:26:20,600
Speaker 3: of exemptions, but ELMI is usually payable if your deposit

585
00:26:20,760 --> 00:26:23,600
Speaker 3: on your first home or any home is less than

586
00:26:23,680 --> 00:26:26,760
Speaker 3: twenty percent of the property price. So the amount is

587
00:26:26,800 --> 00:26:30,040
Speaker 3: going to be really dependent on your deposit amount, the

588
00:26:30,080 --> 00:26:34,040
Speaker 3: property price, your loan provider. And yes, you'll pay more,

589
00:26:34,760 --> 00:26:38,640
Speaker 3: but let's go back, yes and like hopefully maybe reframe

590
00:26:38,720 --> 00:26:41,159
Speaker 3: el AMI. So you hate ELEMI I know you do

591
00:26:41,280 --> 00:26:43,040
Speaker 3: because you don't want to pay for something useless, and

592
00:26:43,080 --> 00:26:46,960
Speaker 3: I totally get that. But if I sat you down

593
00:26:47,000 --> 00:26:49,800
Speaker 3: and said, okay, Jess, you can purchase three years ago

594
00:26:49,840 --> 00:26:52,480
Speaker 3: because you only have ten percent of the deposit and

595
00:26:52,600 --> 00:26:54,800
Speaker 3: then you'll have to pay and then this goes on

596
00:26:54,960 --> 00:26:56,600
Speaker 3: to your mortgage, so you don't have to have this

597
00:26:56,720 --> 00:27:00,280
Speaker 3: in savings, an extra ten thousand dollars and you can

598
00:27:00,359 --> 00:27:03,639
Speaker 3: purchase today. Tell me whether you would have taken that

599
00:27:03,760 --> 00:27:06,720
Speaker 3: up three years ago given the property price increases in

600
00:27:06,800 --> 00:27:07,240
Speaker 3: your area.

601
00:27:07,640 --> 00:27:09,760
Speaker 4: Yeah, I mean, hindsight is twenty twenty, right, Like you

602
00:27:09,800 --> 00:27:11,680
Speaker 4: can look at it and go, oh wow, the growth

603
00:27:11,720 --> 00:27:13,400
Speaker 4: has been crazy over the past few years.

604
00:27:13,760 --> 00:27:15,480
Speaker 2: But yeah, it definitely can be worth it.

605
00:27:15,560 --> 00:27:17,280
Speaker 4: I think if it's going to be the difference between

606
00:27:17,880 --> 00:27:21,200
Speaker 4: that time in the market and potentially avoiding such significant increases,

607
00:27:21,480 --> 00:27:21,720
Speaker 4: and I.

608
00:27:21,760 --> 00:27:23,600
Speaker 3: Think that that's where we need to frame it, Like,

609
00:27:23,960 --> 00:27:26,359
Speaker 3: obviously we don't want to pay for things that are unnecessary,

610
00:27:26,880 --> 00:27:29,720
Speaker 3: but often el AMI is a tool that you can

611
00:27:29,920 --> 00:27:33,240
Speaker 3: use and pay for to get into the market sooner

612
00:27:33,320 --> 00:27:35,480
Speaker 3: when you don't have the full deposit, Like if you've

613
00:27:35,520 --> 00:27:37,720
Speaker 3: only got ten percent, you're like, oh, getting to this

614
00:27:37,800 --> 00:27:40,800
Speaker 3: twenty percent, Like I'm now on maternity leave, or you know,

615
00:27:41,160 --> 00:27:44,320
Speaker 3: my partner's job changed, or I want to do something,

616
00:27:44,440 --> 00:27:46,040
Speaker 3: or you know, we want to get married, so like

617
00:27:46,359 --> 00:27:48,879
Speaker 3: now we're saving for a home deposit and a wedding.

618
00:27:49,240 --> 00:27:51,200
Speaker 3: We have a ten percent deposit though, or we have

619
00:27:51,280 --> 00:27:52,960
Speaker 3: a five percent deposit and we need to talk to

620
00:27:53,000 --> 00:27:56,720
Speaker 3: a mortgage broker. Maybe paying el am I gets you ahead.

621
00:27:57,240 --> 00:28:01,400
Speaker 3: And I think with the astronomical amount that property has

622
00:28:01,440 --> 00:28:04,080
Speaker 3: been increasing for a lot of our clients when we

623
00:28:04,160 --> 00:28:06,600
Speaker 3: do projections, paying l AMI actually makes a lot of

624
00:28:06,680 --> 00:28:09,440
Speaker 3: sense for them. But I totally get not wanting to

625
00:28:09,520 --> 00:28:12,440
Speaker 3: pay for an insurance that one doesn't benefit you, but

626
00:28:12,600 --> 00:28:17,120
Speaker 3: two just feels like another bloody costs totally. Yeah, so yes,

627
00:28:17,280 --> 00:28:19,719
Speaker 3: sometimes it is cheaper to pay l am I now

628
00:28:19,840 --> 00:28:22,400
Speaker 3: and get into the market sooner and start building equity.

629
00:28:22,480 --> 00:28:24,960
Speaker 3: And I guess that's where I'm not saying, Oh it

630
00:28:25,160 --> 00:28:27,560
Speaker 3: means that blanket it's good for everybody, it's not.

631
00:28:28,080 --> 00:28:29,680
Speaker 2: You need to talk to your mortgage.

632
00:28:29,359 --> 00:28:32,800
Speaker 3: Broker and then they'll like mock up a few scenarios

633
00:28:32,920 --> 00:28:35,520
Speaker 3: for you to go, Okay, cool, this looks like this

634
00:28:35,760 --> 00:28:38,240
Speaker 3: or this looks like that. Now, Jess, do you have

635
00:28:38,360 --> 00:28:41,640
Speaker 3: any other hacks or tips or tricks forgetting our deposit?

636
00:28:41,840 --> 00:28:42,400
Speaker 2: Yeah, totally.

637
00:28:42,480 --> 00:28:45,680
Speaker 4: I think automating your savings, paying yourself first, and being

638
00:28:45,880 --> 00:28:50,280
Speaker 4: really strict in the four hard though it is hard,

639
00:28:50,440 --> 00:28:52,200
Speaker 4: but you kind of have to go, Okay, if we're

640
00:28:52,240 --> 00:28:54,800
Speaker 4: doing this, we're doing it. In the four years that

641
00:28:54,920 --> 00:28:58,360
Speaker 4: I've been saving my house deposit, I have not like

642
00:28:58,440 --> 00:29:00,760
Speaker 4: if you look at the bank account that my deposit

643
00:29:00,880 --> 00:29:03,160
Speaker 4: is saved in, there is not a single withdrawal in

644
00:29:03,240 --> 00:29:07,280
Speaker 4: that for you. Okay, little miss flex money and she

645
00:29:07,560 --> 00:29:10,320
Speaker 4: never comes out, like in my mind, And that's where

646
00:29:10,400 --> 00:29:14,680
Speaker 4: having a really clear budgeting in place really benefits you.

647
00:29:14,840 --> 00:29:17,720
Speaker 4: Like some months I might contribute more than others, and

648
00:29:17,760 --> 00:29:20,520
Speaker 4: you can automate that outside just rich.

649
00:29:21,880 --> 00:29:22,600
Speaker 2: Just drop the eye.

650
00:29:23,360 --> 00:29:25,360
Speaker 4: So automating is a really great way using a high

651
00:29:25,360 --> 00:29:27,960
Speaker 4: interest savings account to if you can, to take, you know,

652
00:29:28,040 --> 00:29:29,000
Speaker 4: get where your money work.

653
00:29:29,440 --> 00:29:29,880
Speaker 2: Exactly.

654
00:29:30,040 --> 00:29:31,560
Speaker 4: If I look at the interest that comes into my

655
00:29:31,560 --> 00:29:34,240
Speaker 4: accounts every month, the bulk of it comes from my

656
00:29:34,400 --> 00:29:35,040
Speaker 4: house deposit.

657
00:29:35,160 --> 00:29:36,840
Speaker 2: And that's lovely because then I just chuck that in

658
00:29:36,880 --> 00:29:38,960
Speaker 2: there too. It's very nice. One hundred percent that must

659
00:29:39,000 --> 00:29:39,440
Speaker 2: let us.

660
00:29:39,640 --> 00:29:41,560
Speaker 4: And if you ask someone who's tends to touch your savings,

661
00:29:41,600 --> 00:29:43,920
Speaker 4: you need to add some kind of friction to prevent

662
00:29:44,000 --> 00:29:46,880
Speaker 4: yourself from doing that. So is it having a completely

663
00:29:46,960 --> 00:29:49,520
Speaker 4: separate bank from you know you're existing? Is it a

664
00:29:49,640 --> 00:29:51,920
Speaker 4: bank account that you can lock. Is it something that

665
00:29:52,080 --> 00:29:56,120
Speaker 4: requires double authentication or a password, or just something that

666
00:29:56,160 --> 00:29:58,960
Speaker 4: will stop you from going, oh, I need quick money,

667
00:29:59,040 --> 00:29:59,680
Speaker 4: Now where.

668
00:29:59,560 --> 00:30:01,120
Speaker 2: Can I take make it from? You are not taking

669
00:30:01,200 --> 00:30:03,120
Speaker 2: them from your home deposit. The money goes in there

670
00:30:03,160 --> 00:30:04,120
Speaker 2: to die. That's few to you.

671
00:30:04,400 --> 00:30:06,640
Speaker 3: Yeah, that's few to you. Do not steal from her,

672
00:30:07,120 --> 00:30:09,960
Speaker 3: exactly right. The other thing, just that you and I

673
00:30:10,080 --> 00:30:12,240
Speaker 3: talk a lot about is lifestyle creep. And I hate

674
00:30:12,280 --> 00:30:15,600
Speaker 3: it because I feel like, over time, life just gets

675
00:30:15,640 --> 00:30:18,600
Speaker 3: more expensive because I think in my head, I deserve

676
00:30:18,720 --> 00:30:21,080
Speaker 3: nicer stuff, to go to nicer restaurants, to buy more

677
00:30:21,120 --> 00:30:24,600
Speaker 3: expensive makeup. We're shopping at different, more higher end stores.

678
00:30:24,760 --> 00:30:27,560
Speaker 3: Like I'm not saying that's a bad thing, but doing

679
00:30:27,600 --> 00:30:30,520
Speaker 3: a little bit of a like lifestyle audit can be

680
00:30:30,680 --> 00:30:35,800
Speaker 3: really helpful. Like, if you are a Jessica Rici, you

681
00:30:36,120 --> 00:30:40,040
Speaker 3: want to save your deposit as aggressively as possible. Like,

682
00:30:40,240 --> 00:30:43,480
Speaker 3: let's have a look at some scenarios. If you're like, really,

683
00:30:43,720 --> 00:30:46,160
Speaker 3: I'm going to crack down for twelve months, could you

684
00:30:46,280 --> 00:30:49,720
Speaker 3: live somewhere cheaper, like if you rent an apartment, could

685
00:30:49,800 --> 00:30:52,120
Speaker 3: you maybe live in a share house for twelve months?

686
00:30:52,720 --> 00:30:55,200
Speaker 3: Could like do you actually use your car? Could you

687
00:30:55,320 --> 00:30:57,960
Speaker 3: sell your car and go car free even for twelve months,

688
00:30:58,000 --> 00:30:59,680
Speaker 3: because you're going to save money on petrol, You're going

689
00:30:59,720 --> 00:31:02,160
Speaker 3: to save money on redro and insurance, Like, there are

690
00:31:02,160 --> 00:31:04,280
Speaker 3: a heap of benefits there. You could pick up a

691
00:31:04,360 --> 00:31:07,040
Speaker 3: car in twelve months. What would that look like? What

692
00:31:07,200 --> 00:31:08,360
Speaker 3: other expenses are.

693
00:31:08,280 --> 00:31:09,120
Speaker 2: You able to cut.

694
00:31:09,600 --> 00:31:12,000
Speaker 3: I'm not saying, oh, you have to get rid of

695
00:31:12,040 --> 00:31:15,160
Speaker 3: every single subscription, because for me, it's about the journey,

696
00:31:15,440 --> 00:31:17,360
Speaker 3: But like, go, what are you spending money on there?

697
00:31:17,360 --> 00:31:18,920
Speaker 2: Maybe you don't need to for a little while.

698
00:31:19,040 --> 00:31:22,280
Speaker 3: Yeah, because sometimes I think when we're cutting things from

699
00:31:22,320 --> 00:31:24,720
Speaker 3: our budget, we go, oh my god, no, I'll want

700
00:31:24,760 --> 00:31:27,400
Speaker 3: that in the future, Okay, But like we could cut

701
00:31:27,440 --> 00:31:29,040
Speaker 3: it right now, save some money and you can have

702
00:31:29,120 --> 00:31:34,080
Speaker 3: it later. And I guess the other thing is serviceability,

703
00:31:34,160 --> 00:31:35,920
Speaker 3: which is how much money the bank is going to

704
00:31:35,960 --> 00:31:38,800
Speaker 3: be able to lend you. One of the things that

705
00:31:38,960 --> 00:31:42,720
Speaker 3: can really play into that and really play into turbocharging

706
00:31:42,760 --> 00:31:45,480
Speaker 3: your ability to get to the deposit amount you want.

707
00:31:46,000 --> 00:31:49,600
Speaker 3: How could we increase their income? Can you talk to

708
00:31:49,640 --> 00:31:52,080
Speaker 3: your boss about a pay rise? Could you be switching

709
00:31:52,160 --> 00:31:54,480
Speaker 3: jobs for better pay? Could you pick up like a

710
00:31:54,640 --> 00:31:57,120
Speaker 3: side gig or a side hustle. Is there something that

711
00:31:57,200 --> 00:31:59,720
Speaker 3: you could do or make on your own you could

712
00:31:59,760 --> 00:32:02,840
Speaker 3: sell or rent out, Like Jess is the Queen of

713
00:32:03,000 --> 00:32:05,200
Speaker 3: side hustles. Not only do you have your own little

714
00:32:05,480 --> 00:32:08,960
Speaker 3: content creation thing on the side, you also rent dresses out.

715
00:32:09,040 --> 00:32:11,680
Speaker 3: You're selling everything on bloody market like you are the

716
00:32:11,760 --> 00:32:14,840
Speaker 3: golden child for a side hustle.

717
00:32:14,600 --> 00:32:15,160
Speaker 1: And I love it.

718
00:32:15,960 --> 00:32:19,160
Speaker 3: But just what are some things that you've actually sacrificed

719
00:32:19,240 --> 00:32:20,320
Speaker 3: to increase your deposit.

720
00:32:20,560 --> 00:32:23,120
Speaker 4: I think a lot of it has been yeah, like

721
00:32:23,280 --> 00:32:26,320
Speaker 4: very much lifestyle things like we only get to really

722
00:32:26,400 --> 00:32:26,880
Speaker 4: boring now.

723
00:32:27,080 --> 00:32:30,800
Speaker 2: I honestly were not for your takeout once a week.

724
00:32:30,880 --> 00:32:31,000
Speaker 1: You know.

725
00:32:31,120 --> 00:32:33,360
Speaker 4: I talk a lot about being circular, so like I like,

726
00:32:33,520 --> 00:32:35,080
Speaker 4: I still want to buy new clothes, but if I

727
00:32:35,120 --> 00:32:36,720
Speaker 4: want to buy a new clothes, that's how old ones.

728
00:32:36,800 --> 00:32:40,680
Speaker 4: So it's I'm not necessarily spending more money. Shopping second

729
00:32:40,760 --> 00:32:42,240
Speaker 4: hand is such a big thing, Like I can do

730
00:32:42,360 --> 00:32:45,000
Speaker 4: things more affordably, so like, yes, I'm giving up that

731
00:32:45,280 --> 00:32:49,280
Speaker 4: instantaneous culture of going in and buying the newest, latest whatever,

732
00:32:49,840 --> 00:32:52,720
Speaker 4: but I think it's maybe a much more conscious consumer.

733
00:32:53,400 --> 00:32:56,440
Speaker 4: Also when we've had to make adjustments for cost of living.

734
00:32:56,680 --> 00:32:58,640
Speaker 4: You know, I have reduced the amount of money that

735
00:32:58,720 --> 00:33:02,840
Speaker 4: I invest which I don't love. But with money going

736
00:33:02,960 --> 00:33:04,920
Speaker 4: not as far these days, you kind of have to

737
00:33:05,000 --> 00:33:07,440
Speaker 4: pick something to prioritize them. For me, right now, that

738
00:33:07,640 --> 00:33:10,520
Speaker 4: has been my house deposit. I'm still investing, but I'm

739
00:33:10,600 --> 00:33:13,600
Speaker 4: not investing as much as I used to, And like, yeah,

740
00:33:13,640 --> 00:33:15,920
Speaker 4: that does suck. Honestly, There's no two ways it comes

741
00:33:15,960 --> 00:33:18,360
Speaker 4: into strategy, right, That's what sacrifice is.

742
00:33:18,440 --> 00:33:20,440
Speaker 2: Yeah, exactly, And you would have had to weigh up.

743
00:33:20,480 --> 00:33:23,360
Speaker 3: Okay, cool, Like I could still invest the same amount

744
00:33:23,440 --> 00:33:25,960
Speaker 3: into my investments, but it's just going to take.

745
00:33:25,880 --> 00:33:28,200
Speaker 2: Me a bit longer to buy a house.

746
00:33:28,800 --> 00:33:31,400
Speaker 3: Or I could flip it around and sacrifice my investments

747
00:33:31,480 --> 00:33:34,080
Speaker 3: for now and still be able to buy on my timeline.

748
00:33:34,560 --> 00:33:35,600
Speaker 2: And that's more important to you.

749
00:33:35,800 --> 00:33:39,240
Speaker 3: Yeah, And strategy isn't just about what's best quote on paper,

750
00:33:39,560 --> 00:33:40,200
Speaker 3: but also.

751
00:33:40,120 --> 00:33:42,280
Speaker 2: Like what do you want? What do you want to achieve?

752
00:33:42,400 --> 00:33:44,800
Speaker 3: What do you want your lifestyle to look like? And

753
00:33:44,880 --> 00:33:47,000
Speaker 3: you've made decisions based on that, and I think that

754
00:33:47,160 --> 00:33:48,480
Speaker 3: that's the most important thing.

755
00:33:48,640 --> 00:33:49,800
Speaker 2: The segway of or segways.

756
00:33:49,840 --> 00:33:51,800
Speaker 4: May I just say something people ask us a lot

757
00:33:51,840 --> 00:33:53,680
Speaker 4: when we're talking about saving up your.

758
00:33:53,560 --> 00:33:56,680
Speaker 2: House deposit, is should I invest my house deposit?

759
00:33:56,840 --> 00:33:57,000
Speaker 3: Oh?

760
00:33:57,240 --> 00:33:59,440
Speaker 2: That's it, that's it, that's the end of the show.

761
00:33:59,520 --> 00:34:01,000
Speaker 2: Do not in there's your house to posit?

762
00:34:01,560 --> 00:34:01,720
Speaker 4: Why?

763
00:34:02,080 --> 00:34:04,920
Speaker 3: Because you don't know what the market is doing, and

764
00:34:05,240 --> 00:34:07,400
Speaker 3: we want to make sure that we are investing for

765
00:34:07,560 --> 00:34:11,520
Speaker 3: the long term. Like I am not a penny stock trader.

766
00:34:11,680 --> 00:34:14,640
Speaker 3: I am not somebody who invests in things because I'm

767
00:34:14,680 --> 00:34:17,359
Speaker 3: hoping it increases by one hundred percent in one year,

768
00:34:17,680 --> 00:34:21,360
Speaker 3: like low and slow, like I want to be reach AF.

769
00:34:21,760 --> 00:34:24,640
Speaker 3: I don't think that's a secret, do we all exactly?

770
00:34:24,960 --> 00:34:27,440
Speaker 3: But like my plan is going to work because it's

771
00:34:27,840 --> 00:34:31,200
Speaker 3: low and slow consistently over the long term. I'm investing

772
00:34:31,280 --> 00:34:34,320
Speaker 3: into some relatively boring things. You guys know, most of

773
00:34:34,400 --> 00:34:38,040
Speaker 3: my shares are in ETFs and I'm picking really boring

774
00:34:38,120 --> 00:34:42,399
Speaker 3: managed funds. But y'll my performance over the last ten

775
00:34:42,520 --> 00:34:44,800
Speaker 3: years has been more than twenty percent because of that,

776
00:34:45,440 --> 00:34:48,279
Speaker 3: and that's not actually reflective of the market. That's just

777
00:34:48,360 --> 00:34:52,800
Speaker 3: a reflective of my personal portfolio. But it means and

778
00:34:52,920 --> 00:34:55,759
Speaker 3: because the average rate of return of the Australian share

779
00:34:55,840 --> 00:34:58,640
Speaker 3: market over the last thirty years is sitting at about

780
00:34:58,719 --> 00:35:01,440
Speaker 3: nine percent, and all time it's sitting at about eleven percent.

781
00:35:01,760 --> 00:35:05,080
Speaker 3: But I think it is so important because over that

782
00:35:05,200 --> 00:35:08,440
Speaker 3: time my share portfolio has gone down and if I

783
00:35:08,560 --> 00:35:12,600
Speaker 3: had plans to purchase that year, I'm sorry, I wouldn't

784
00:35:12,600 --> 00:35:14,640
Speaker 3: have been able to because my portfolio would have been

785
00:35:14,680 --> 00:35:17,480
Speaker 3: down by eleven percent. Yeah, and I've therefore got eleven

786
00:35:17,520 --> 00:35:20,600
Speaker 3: percent less as a deposit, And so should you invest

787
00:35:20,600 --> 00:35:21,120
Speaker 3: your deposit.

788
00:35:21,360 --> 00:35:21,400
Speaker 4: No.

789
00:35:21,760 --> 00:35:24,080
Speaker 3: That's why we recommend and talk to you about high

790
00:35:24,120 --> 00:35:27,640
Speaker 3: interest savings accounts. Because you're usually not saving a house

791
00:35:27,680 --> 00:35:30,319
Speaker 3: deposit for more than ten years. Yeah, all right, Jess,

792
00:35:30,360 --> 00:35:32,800
Speaker 3: I feel like that's probably a very good place to

793
00:35:32,960 --> 00:35:36,320
Speaker 3: leave it. Hopefully this chat has made buying a property

794
00:35:36,360 --> 00:35:38,799
Speaker 3: feel a little bit more within reachi And even if

795
00:35:38,840 --> 00:35:41,600
Speaker 3: you're doing it solo, my friends, you're not alone. We

796
00:35:41,760 --> 00:35:44,560
Speaker 3: are right here cheering you on and if you want

797
00:35:44,640 --> 00:35:47,400
Speaker 3: a little bit more support. As it turns out, this

798
00:35:47,600 --> 00:35:49,960
Speaker 3: is literally my job, day in, day out. So if

799
00:35:50,000 --> 00:35:51,960
Speaker 3: if you're meaning to talk to a mortgage broker and

800
00:35:52,040 --> 00:35:54,640
Speaker 3: you want one that's basically like Jess and I are

801
00:35:54,680 --> 00:35:57,440
Speaker 3: bestie on your team. I will put all the information

802
00:35:57,719 --> 00:35:59,880
Speaker 3: to my business seller money in the show notes.

803
00:36:00,239 --> 00:36:03,520
Speaker 2: But yes, thanks for doing this little property episode with me.

804
00:36:03,600 --> 00:36:06,239
Speaker 2: It's been good any time. Thanks for having me.

805
00:36:06,520 --> 00:36:09,640
Speaker 3: And guys, if you loved this episode, please make sure

806
00:36:09,680 --> 00:36:12,000
Speaker 3: that you follow the show, leave us a review, and

807
00:36:12,200 --> 00:36:15,120
Speaker 3: share it with somebody else who's dreaming of getting into

808
00:36:15,200 --> 00:36:18,279
Speaker 3: the property market. And if you want more episodes just

809
00:36:18,560 --> 00:36:20,520
Speaker 3: like this, let us know in the comments, because guys,

810
00:36:20,560 --> 00:36:23,360
Speaker 3: we are always watching and we are always listening. Have

811
00:36:23,440 --> 00:36:32,480
Speaker 3: a good week, guys, Bye bye. Did buy shared on

812
00:36:32,640 --> 00:36:35,000
Speaker 3: She's on the Money? Is general in nature and does

813
00:36:35,120 --> 00:36:39,040
Speaker 3: not consider your individual circumstances. She's on the Money exists

814
00:36:39,200 --> 00:36:42,399
Speaker 3: purely for educational purposes and should not be relied upon

815
00:36:42,480 --> 00:36:45,480
Speaker 3: to make an investment or financial decision. If you do

816
00:36:45,680 --> 00:36:48,600
Speaker 3: choose to buy a financial product, read the PDS TMD

817
00:36:48,840 --> 00:36:50,840
Speaker 3: and obtain appropriate financial.

818
00:36:50,440 --> 00:36:52,200
Speaker 2: Advice tailored towards your needs.

819
00:36:52,600 --> 00:36:56,480
Speaker 3: Victoria Devine and She's on the Money are authorized representatives

820
00:36:56,600 --> 00:37:00,680
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821
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