Latest / She's On The Money / Is rentvesting the solution to having our avocado and eating it too?

Transcript

Is rentvesting the solution to having our avocado and eating it too? · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money.
• 0:12
  Speaker 2: Hello, and welcome to She Is on the Money, the
• 0:14
  Speaker 2: podcast for millennials who want financial freedom.
• 0:17
  Speaker 1: Today's episode of.
• 0:18
  Speaker 2: The show is brought to you by Upbank, the digital
• 0:20
  Speaker 2: bank designed to help you organize your money and simplify
• 0:22
  Speaker 2: your life. As regular listeners to the show would know,
• 0:24
  Speaker 2: my name is Georgia King, a twenty something with stacks
• 0:27
  Speaker 2: to learn when it comes.
• 0:28
  Speaker 1: To navigating cash.
• 0:29
  Speaker 2: To help me find some answers for the very last
• 0:32
  Speaker 2: episode of season two, we back soon, though, guys, don't worry.
• 0:36
  Speaker 2: I am joined as always by millennial money expert Miss Victoria.
• 0:39
  Speaker 3: To Fine Hello, Hello friends.
• 0:41
  Speaker 2: Now today on the show, we are going to be
• 0:43
  Speaker 2: talking about rent investing, which puts simply, is the choice
• 0:46
  Speaker 2: to invest in a property somewhere while renting somewhere else
• 0:50
  Speaker 2: instead of the more traditional trend of buying property is
• 0:52
  Speaker 2: your big investment and then living in it. Before we
• 0:54
  Speaker 2: do dive deep into today's topic, though, Victoria, let's chat
• 0:56
  Speaker 2: our own money wins, money confessions.
• 0:58
  Speaker 1: How did you go this week?
• 1:00
  Speaker 3: I have a money win that I am silly levels
• 1:04
  Speaker 3: of excited about it that no one else is going
• 1:07
  Speaker 3: to care about, So share with us on season one.
• 1:10
  Speaker 3: I talk to you guys about how much I love
• 1:12
  Speaker 3: my pantry and I have these beautiful containers. You've probably
• 1:16
  Speaker 3: seen the picture on our Facebook group. Have beautiful containers
• 1:20
  Speaker 3: really well, like I'm the queen. Yeah, look calm down,
• 1:25
  Speaker 3: i am the Queen of the spice rack. And recently
• 1:29
  Speaker 3: I have been looking to make sure that all my
• 1:31
  Speaker 3: oil bottles match, because that is not a sign of
• 1:34
  Speaker 3: having OCD at all. So I found some oil bottles
• 1:38
  Speaker 3: that I really like. They are beautiful, they are well designed,
• 1:40
  Speaker 3: but they are eighty dollars each on the internet and
• 1:43
  Speaker 3: I am not having it. It is not an option.
• 1:45
  Speaker 3: But I still really like the design of them. So
• 1:48
  Speaker 3: I went onto Ali Express this week and I have
• 1:51
  Speaker 3: ordered them all for fifteen dollars each instead of eighty
• 1:55
  Speaker 3: dollars per bttle. That's a pretty good deal.
• 1:57
  Speaker 1: Still seems expensive to me for an oil bottle, butt.
• 2:00
  Speaker 3: It is, it's a ridiculous amount. I bought six of them.
• 2:03
  Speaker 3: I will probably post photos once I've labeled them, and
• 2:07
  Speaker 3: for me, I feel like that's a money win. But
• 2:09
  Speaker 3: it also could be a money loss because I've never
• 2:12
  Speaker 3: ordered something off Ali Express, so who knows. It's Ali Express.
• 2:16
  Speaker 3: It looked good. It's just a website. They ship directly
• 2:19
  Speaker 3: from China, no judgment, But what if it doesn't arrive?
• 2:23
  Speaker 3: I might have a money loss for you next season anyway.
• 2:26
  Speaker 3: Oil bottles. I know no one's as excited about that
• 2:29
  Speaker 3: as me, but I don't particularly mind.
• 2:31
  Speaker 1: I think that means you're an adult now like that?
• 2:33
  Speaker 3: Does it?
• 2:34
  Speaker 2: Like when you're starting to be interested in homewares and
• 2:37
  Speaker 2: towels and oil bottles.
• 2:39
  Speaker 3: That's in vacuums. I'm looking for a vacuum right now?
• 2:41
  Speaker 3: Or recommendations welcome anyway? Exciting guys, if you are still
• 2:47
  Speaker 3: listening to the show after all of that, Georgia King,
• 2:49
  Speaker 3: do you have a money win or confession that you'd
• 2:51
  Speaker 3: like to share that isn't as dry as mine?
• 2:53
  Speaker 2: Mine is a win, and it's not a dry one.
• 2:56
  Speaker 2: I recently went to the Great Ocean Road with my
• 2:58
  Speaker 2: boyfriend for a little.
• 2:59
  Speaker 3: Bit dayeh, boy boy, and.
• 3:04
  Speaker 2: Instead of staying in a ritzy hotel, we decided to camp.
• 3:07
  Speaker 2: Found beautiful a free camp site in like the hinterland,
• 3:11
  Speaker 2: so gorgeous. Didn't spend a cent except for on food
• 3:14
  Speaker 2: and petrol and stuff like that, but.
• 3:15
  Speaker 1: Not on age, not on accommodation.
• 3:17
  Speaker 2: So we saved that and shout out to my friend
• 3:18
  Speaker 2: Lily Pope who recommended that to me.
• 3:21
  Speaker 1: So what a.
• 3:22
  Speaker 3: Delightful human being. I love it.
• 3:25
  Speaker 2: Okay, So now let's take a quick look at the
• 3:27
  Speaker 2: Facebook community, which was impressive, as it literally always is
• 3:30
  Speaker 2: week on week.
• 3:32
  Speaker 1: The witch post stood out.
• 3:33
  Speaker 3: To you, okay, So I have one from Rebecca, who
• 3:37
  Speaker 3: I love. It is hilarious. She says money win, but
• 3:40
  Speaker 3: I would really have thought it was funny if she
• 3:42
  Speaker 3: put like honey wind, because it totally is about honey,
• 3:45
  Speaker 3: and that's honey. Anyway, She said, my mum and I
• 3:48
  Speaker 3: have been beekeeping for about a year, and today, quite dramatically,
• 3:52
  Speaker 3: she found out she was allergic to bees. On the
• 3:54
  Speaker 3: plus side, she said, we sold our first two kilos
• 3:57
  Speaker 3: of honey to the nurses in emergency, therefore making our
• 4:00
  Speaker 3: first money win with our b slash honey business. And
• 4:03
  Speaker 3: she posted a really cute photo of her with two
• 4:06
  Speaker 3: jars of honey, but also a swollen shut eye, and
• 4:10
  Speaker 3: I feel like that's maybe a loss, but she also
• 4:13
  Speaker 3: made the first sale in her small business. So he's
• 4:16
  Speaker 3: to Rebecca and her honey business. I love it. What
• 4:19
  Speaker 3: have you got for me jk okay.
• 4:21
  Speaker 2: So mine is from a Sunky who has written in
• 4:23
  Speaker 2: money Win was paying near five dollars for a packet
• 4:26
  Speaker 2: of bliss balls and going through about two to three
• 4:28
  Speaker 2: packets a week. Me yops, we've all been there. Decided
• 4:32
  Speaker 2: to make these at home and it took me fifteen
• 4:33
  Speaker 2: minutes to make. They taste even more delicious than the
• 4:35
  Speaker 2: store board ones. They're plastic free, saving money, saving the environment.
• 4:39
  Speaker 2: They're also vegan friendly and healthy. She then posted the
• 4:42
  Speaker 2: recipe as well as a photo of some delicious looking
• 4:44
  Speaker 2: protein balls there as well.
• 4:45
  Speaker 3: Awesome Georgia dish used any emojis.
• 4:47
  Speaker 1: She did, Sorry, she used several emojis.
• 4:49
  Speaker 2: Let me just talk you through them. There were four
• 4:52
  Speaker 2: with the big teeth like a big grin.
• 4:54
  Speaker 3: Beautiful, beautiful, and they're important to visualize these exactly.
• 4:57
  Speaker 2: There's also two more of those and then a wink face.
• 4:59
  Speaker 2: I think quite small, so it might not be a
• 5:01
  Speaker 2: wink face, but I'm.
• 5:02
  Speaker 3: Appreciate it's go with a wing pase. Should we move
• 5:04
  Speaker 3: on V We should absolutely move on today's wild.
• 5:10
  Speaker 2: And now into the main part of today's show, rent Festing. Now,
• 5:13
  Speaker 2: it's no secret that the property market in Australia is
• 5:16
  Speaker 2: a tough cookie to craft, with the average home price
• 5:18
  Speaker 2: in Sydney just shy of one million dollars at nine
• 5:21
  Speaker 2: hundred and fifty five thousand dollars right now in Melbourne
• 5:24
  Speaker 2: the median price is seven hundred and thirty seven thousand,
• 5:26
  Speaker 2: which we're.
• 5:26
  Speaker 3: A little bit more reasonable down a low Melbourn a.
• 5:28
  Speaker 2: Little bit, still little bit. That still seems astronomical to me.
• 5:31
  Speaker 2: So even the millennials refusing Avalon toast and opting instead
• 5:34
  Speaker 2: for Bland Breckeys are battling to break in and the
• 5:36
  Speaker 2: old Australian dream of owning our own home seems like
• 5:39
  Speaker 2: it's only getting a further and further out of each
• 5:41
  Speaker 2: So what are our alternatives? Some say that rent festing
• 5:45
  Speaker 2: is the way to go, That is renting in the
• 5:47
  Speaker 2: suburb you want to live in while buying a home
• 5:49
  Speaker 2: in a more affordable location, perhaps a little further out,
• 5:52
  Speaker 2: and using that property as your investment Victoria. Firstly, is
• 5:56
  Speaker 2: rent festing something we should actually be considering? And why
• 5:58
  Speaker 2: do you think so many millennials are using this strategy
• 6:01
  Speaker 2: to break into the property market.
• 6:02
  Speaker 3: I love this strategy because I feel like everyone that
• 6:06
  Speaker 3: I talk to after we've had a really good discussion
• 6:08
  Speaker 3: about investment and they have decided that property is the
• 6:11
  Speaker 3: asset class they want to be investing in. Rentvesting allows
• 6:15
  Speaker 3: you to buy a property in a location that has
• 6:19
  Speaker 3: good capital growth, good rental yield and the ability to
• 6:22
  Speaker 3: create wealth while still living in an area that gives
• 6:26
  Speaker 3: you the lifestyle you want. So, for example, we live
• 6:29
  Speaker 3: here in Melbourne and I have a couple of clients
• 6:32
  Speaker 3: who live in apartments in Peran. They couldn't afford to
• 6:35
  Speaker 3: buy in Peran, so they've bought a little bit further out,
• 6:37
  Speaker 3: they rent those properties out and they still get the
• 6:41
  Speaker 3: lifestyle that they want at this point in time, and
• 6:44
  Speaker 3: a lot of the time, rent investing is a great
• 6:47
  Speaker 3: idea because it turns a property that you purchase from
• 6:50
  Speaker 3: an owner occupier asset to an investment asset, which means
• 6:54
  Speaker 3: you can now claim tax on that asset and it
• 6:57
  Speaker 3: becomes a little bit more of a sexy option when
• 7:00
  Speaker 3: it comes to returns. So whilst there are a whole
• 7:03
  Speaker 3: heap of different rules and regulations, such as living in
• 7:06
  Speaker 3: the asset for the first year so that you can
• 7:08
  Speaker 3: get some concessions on capital gains and then moving out.
• 7:11
  Speaker 3: There are a lot of moving parts to this, but
• 7:13
  Speaker 3: at the end of the day, rent vesting is essentially
• 7:16
  Speaker 3: where you purchase a property that you do not live
• 7:19
  Speaker 3: in that has a rental yield. You take that rental yield.
• 7:23
  Speaker 3: For example, if someone was paying you three hundred and
• 7:25
  Speaker 3: fifty dollars in rent each week at the property you own,
• 7:29
  Speaker 3: you then go and spend that three hundred and fifty
• 7:32
  Speaker 3: dollars on renting the apartment or property that you want
• 7:35
  Speaker 3: to live in the area that you want to live in,
• 7:37
  Speaker 3: and you then go and pay the mortgage. But you're
• 7:40
  Speaker 3: getting a tax deduction on that mortgage. Therefore you're able
• 7:44
  Speaker 3: to pay it off faster as well. So there's a
• 7:47
  Speaker 3: number of benefits to rent vesting that aren't just I'm
• 7:50
  Speaker 3: not living in the property, so there are tax benefits
• 7:53
  Speaker 3: associated with it, there are lifestyle benefits associated with it,
• 7:57
  Speaker 3: and also the ability to pay off a mortgagehag faster,
• 8:00
  Speaker 3: which to me is really important because it does two things. One,
• 8:04
  Speaker 3: getting out of debt is priority to me and making
• 8:06
  Speaker 3: sure that we don't have assets that cost us money.
• 8:09
  Speaker 3: But two, the faster we're paying off a mortgage, the
• 8:13
  Speaker 3: faster we have access to what is called equity, and
• 8:16
  Speaker 3: equity allows us to build other assets. So it allows
• 8:20
  Speaker 3: us to leverage to purchase another asset if that is
• 8:23
  Speaker 3: what we wish to do.
• 8:25
  Speaker 1: So would that be like buying another house, Well.
• 8:26
  Speaker 3: It could be buying another house, It could be you
• 8:29
  Speaker 3: purchasing a property because it is a really good asset
• 8:32
  Speaker 3: in a well diversified investment portfolio, so that you can
• 8:36
  Speaker 3: then go and buy some shares and you've got your
• 8:38
  Speaker 3: rent covered so that you're in a position where you
• 8:40
  Speaker 3: are making the most of the income that's coming in.
• 8:44
  Speaker 3: So rentvesting isn't for everyone, but it's a really good
• 8:46
  Speaker 3: conversation to have because now that we are in a
• 8:50
  Speaker 3: position where the average house price here in Melbourne is
• 8:52
  Speaker 3: seven hundred and thirty seven thousand dollars and in Sydney
• 8:55
  Speaker 3: it's nine hundred and fifty five thousand dollars, those numbers
• 8:59
  Speaker 3: are incredibly hard and very very unrealistic for most first
• 9:04
  Speaker 3: home buyers. So we need to look at other assets
• 9:07
  Speaker 3: that we can invest in in the interim before we
• 9:10
  Speaker 3: are actually able to buy our family home. The Australian
• 9:14
  Speaker 3: dream over the last fifty years, fifty plus years, let's
• 9:18
  Speaker 3: call it forever has always been to buy your family home,
• 9:22
  Speaker 3: live in it, pay it completely off, and that is
• 9:24
  Speaker 3: what we've all worked towards. But now it is not
• 9:28
  Speaker 3: financially viable for most of us to actually own the
• 9:31
  Speaker 3: property that we live in. So renvesting gives us the
• 9:34
  Speaker 3: ability to purchase a property that is going to help
• 9:37
  Speaker 3: us create future wealth while also giving us the ability
• 9:40
  Speaker 3: to live the lifestyle that we want to live right now,
• 9:43
  Speaker 3: because historically, let's call it, our parents were able to
• 9:46
  Speaker 3: buy a property that they could move into and afford
• 9:48
  Speaker 3: and pay off, whereas we don't have that grace. I
• 9:51
  Speaker 3: know if I look at myself, I live in the
• 9:53
  Speaker 3: inner eastern suburbs of Melbourne. The prices of properties there
• 9:57
  Speaker 3: are insane and there is abs no way that myself,
• 10:02
  Speaker 3: included as a first home buyer, will be able to
• 10:04
  Speaker 3: buy a property in that location and to have it
• 10:07
  Speaker 3: be my dream property. So I think that it is
• 10:10
  Speaker 3: a really important thing that we actually reiterate here is
• 10:14
  Speaker 3: that first home buyers are now not able to purchase
• 10:17
  Speaker 3: their dream property as their first property.
• 10:19
  Speaker 2: So we've spoken about using this strategy to get our
• 10:22
  Speaker 2: foot into the property market.
• 10:23
  Speaker 3: Door.
• 10:24
  Speaker 2: Would you say people are mainly using rent vesting as
• 10:26
  Speaker 2: a stepping stone to eventually getting their dream.
• 10:29
  Speaker 3: A lot of people talk about rent vesting because you
• 10:30
  Speaker 3: can get into property now. I think we really need
• 10:33
  Speaker 3: to be thinking about the long term strategy. And an
• 10:36
  Speaker 3: important thing when it comes to property for me is
• 10:39
  Speaker 3: that we take the emotion out of the investment. Too
• 10:42
  Speaker 3: often do I see people coming in to talk about
• 10:44
  Speaker 3: property with us and they're like, I really just want
• 10:46
  Speaker 3: to buy my perfect home, and it's like, okay, cool.
• 10:49
  Speaker 3: So this is an emotionally driven purchase, and to me,
• 10:52
  Speaker 3: we can't have that because you are going to make
• 10:55
  Speaker 3: a decision that is not going to be in the
• 10:57
  Speaker 3: best interests of long term you. Yes, you might get
• 11:00
  Speaker 3: your white picket fence and you might get the perfect
• 11:03
  Speaker 3: front door, but does that actually help you generate wealth
• 11:07
  Speaker 3: over the long term. So yes, some people are using
• 11:10
  Speaker 3: rent vesting as a way to get their foot in
• 11:13
  Speaker 3: the property market, or they are purchasing a lower value
• 11:16
  Speaker 3: property the property is increasing in value and then they
• 11:19
  Speaker 3: are either selling that property so that they are able
• 11:22
  Speaker 3: to then buy what we deem their dream home. Or
• 11:25
  Speaker 3: there are a lot of people who are purchasing properties
• 11:28
  Speaker 3: to rent vest They're paying interest only on their loans,
• 11:31
  Speaker 3: and they are purchasing more properties with the goal of
• 11:35
  Speaker 3: having the rental yield as an income source. So a
• 11:39
  Speaker 3: lot of people, and I'm not saying that this is
• 11:42
  Speaker 3: right or wrong. It is just a strategy that we
• 11:44
  Speaker 3: are having a chat about. A lot of people are
• 11:46
  Speaker 3: purchasing property with the intention of gaining the rental yield
• 11:50
  Speaker 3: and creating a property portfolio that sustains their that sustains
• 11:56
  Speaker 3: their living expenses, and that could happen for their entire life.
• 11:59
  Speaker 3: So they might create a property portfolio that returns enough
• 12:03
  Speaker 3: to pay off all of the mortgages or pay the
• 12:05
  Speaker 3: minimum on their interest only loans, as well as me
• 12:08
  Speaker 3: their daily and monthly money needs. So I think it's
• 12:12
  Speaker 3: important to see that there are a number of different
• 12:14
  Speaker 3: reasons we would rent vest but the reason we are
• 12:17
  Speaker 3: rent vesting is going to be personal to us. So
• 12:20
  Speaker 3: a good example of this is, let's use me as
• 12:23
  Speaker 3: an example. I would love to purchase in the area
• 12:26
  Speaker 3: that I live. I can't afford it, So I might
• 12:29
  Speaker 3: go and purchase a property in an area that I
• 12:31
  Speaker 3: can afford that I believe is going to have really
• 12:34
  Speaker 3: good capital growth, really good rental yield, I'm not purchasing
• 12:38
  Speaker 3: a property that I'm in love with. I'm purchasing a
• 12:40
  Speaker 3: property that is a good financial decision, and I am
• 12:44
  Speaker 3: waiting for that capital growth to kick in and me
• 12:47
  Speaker 3: to have an asset that enables me to purchase the
• 12:50
  Speaker 3: home that I would like. It is not the only
• 12:52
  Speaker 3: wealth creation strategy that exists. There are a lot of them,
• 12:56
  Speaker 3: but it is one that you can use to leverage it.
• 12:59
  Speaker 3: But it's not going to take twelve months. We know
• 13:01
  Speaker 3: that property takes about ten years to double in value.
• 13:05
  Speaker 3: So this, as much as it seems like a really
• 13:07
  Speaker 3: quick fix, because a lot of the articles and the
• 13:09
  Speaker 3: communications that are out there about rent vesting make it
• 13:12
  Speaker 3: seem as though you can get into your dream property
• 13:14
  Speaker 3: faster using rent vesting, it's actually a little bit of
• 13:18
  Speaker 3: a myth because you still have to wait for that
• 13:20
  Speaker 3: capital growth to happen. You still have to be paying
• 13:23
  Speaker 3: off a mortgage, you still have a really large financial
• 13:26
  Speaker 3: commitment that you need to consider whether is actually going
• 13:29
  Speaker 3: to help you create wealth in the way that you
• 13:31
  Speaker 3: want in the timeframe that you have.
• 13:33
  Speaker 2: So I'm rent vesting, Victoria. Can I just move into
• 13:36
  Speaker 2: that property whenever I want to?
• 13:37
  Speaker 3: Technically guess because legally you can kick your tenants out
• 13:41
  Speaker 3: and you can move in as the owner to become
• 13:43
  Speaker 3: owner occupier. There are a number of things that you
• 13:46
  Speaker 3: need to take into consideration when making that decision, though, Ye,
• 13:49
  Speaker 3: because if you switch from being an investment to an
• 13:52
  Speaker 3: owner occupier, you are now not able to claim it
• 13:55
  Speaker 3: on tax. Things are going to increase, and there is
• 13:59
  Speaker 3: a very large probability that you cannot afford to live
• 14:02
  Speaker 3: in that property. So I have clients where we have said, look,
• 14:06
  Speaker 3: you can buy the property that you really want to buy,
• 14:09
  Speaker 3: but you cannot move into it until you've paid a
• 14:12
  Speaker 3: specific amount off your mortgage, so that we have debt
• 14:15
  Speaker 3: repayments that are really manageable once you move in, So
• 14:19
  Speaker 3: more often than not, your debt repayments will increase because
• 14:23
  Speaker 3: you no longer get those tax deductions on that property
• 14:27
  Speaker 3: if you move in.
• 14:28
  Speaker 1: Now we all know that rent money is dead money.
• 14:30
  Speaker 2: No, we do not, g king, well, is that a
• 14:33
  Speaker 2: thing in this case?
• 14:33
  Speaker 3: Is it a thing?
• 14:34
  Speaker 1: Generally?
• 14:34
  Speaker 3: You need to stop saying things wildly inaccurate on this podcast.
• 14:38
  Speaker 1: Look, expert, well, I try to be.
• 14:41
  Speaker 3: You don't help me know, so I think that rent
• 14:44
  Speaker 3: money is dead money. Is such an outdated concept that
• 14:48
  Speaker 3: never existed to begin with. Like, paying rent to me
• 14:52
  Speaker 3: is paying for a lifestyle, and if that is of
• 14:55
  Speaker 3: value to you, then pay more on rent. I know
• 14:58
  Speaker 3: people and have clients who say, no, oh, I don't
• 15:00
  Speaker 3: really want to spend a lot on rent, so I'm
• 15:02
  Speaker 3: just going to rent this place. It does the job.
• 15:04
  Speaker 3: It's a place that I have that I live, and
• 15:07
  Speaker 3: I'm going to spend all my money on entertainment, Whereas
• 15:09
  Speaker 3: the opposite is true for a lot of my other clients,
• 15:12
  Speaker 3: where they say, no, I really want to have a
• 15:13
  Speaker 3: beautiful home that I love living in. I entertain at
• 15:16
  Speaker 3: home a lot, and that's their values. So it all
• 15:19
  Speaker 3: comes back to values. But rent money is not dead
• 15:22
  Speaker 3: money if you're getting something out of it, so if
• 15:25
  Speaker 3: you're getting the lifestyle that you want, or you're investing
• 15:28
  Speaker 3: your money elsewhere. So mortgages are really expensive, and I
• 15:33
  Speaker 3: won't be breaking any news here to you. Everybody knows that.
• 15:37
  Speaker 3: But more often than not, a mortgage is really expensive.
• 15:39
  Speaker 3: So to live in the property that you own can
• 15:42
  Speaker 3: often be just out of the question, especially in the
• 15:45
  Speaker 3: area that you want to live. So paying rent enables
• 15:49
  Speaker 3: you to invest the surplus cash that you have in
• 15:52
  Speaker 3: another place, so you can create wealth while you're paying
• 15:56
  Speaker 3: money to have a roof of your head. At the
• 15:58
  Speaker 3: end of the day, I think rent my is dead.
• 16:00
  Speaker 3: Money is a really terrible saying, because we all need
• 16:03
  Speaker 3: somewhere to live, literally, and paying rent is a part
• 16:06
  Speaker 3: of that. It is an essential. So it's like saying, oh,
• 16:10
  Speaker 3: spending money on food, what a waste? Like that's not
• 16:13
  Speaker 3: a thing that we can say because we all know
• 16:15
  Speaker 3: we need food. We all know that we need to
• 16:16
  Speaker 3: be paying money to have a roof over our heads. However,
• 16:20
  Speaker 3: we have the opportunity to choose how much that costs us,
• 16:24
  Speaker 3: and that comes down to our values.
• 16:26
  Speaker 2: So, as a millennial, if one of my values is
• 16:29
  Speaker 2: to have a property break into the market, would you
• 16:31
  Speaker 2: say this is the best way to do it.
• 16:32
  Speaker 3: It's not necessarily the best way to do it. But
• 16:35
  Speaker 3: if you are a millennial who says, well, you're just
• 16:39
  Speaker 3: a person who wants to get into the property market,
• 16:42
  Speaker 3: and you know that property is one hundred percent what
• 16:44
  Speaker 3: you want to purchase out of all the asset classes.
• 16:47
  Speaker 3: If you've done your research and you say no, it's
• 16:48
  Speaker 3: still want to invest in property and Victoria it's not emotional.
• 16:52
  Speaker 3: I just want to choose this. I'm here for it.
• 16:55
  Speaker 3: I think that it is a really great way for
• 16:57
  Speaker 3: people to purchase a property so that they can build wealth.
• 17:00
  Speaker 3: But again, I need to really reiterate buying property needs
• 17:04
  Speaker 3: to not be such an emotional decision. I can fall
• 17:07
  Speaker 3: in love with so many different properties, and it is
• 17:10
  Speaker 3: so easy to go through the domain website and be like,
• 17:13
  Speaker 3: oh my gosh, look at that one. It's got a
• 17:14
  Speaker 3: full God. It makes me so excited, I know, and
• 17:17
  Speaker 3: we really need to stop doing that, because it's not
• 17:20
  Speaker 3: that it's not going to happen. It's just that it
• 17:22
  Speaker 3: is unreasonable for us to be choosing an asset that's
• 17:26
  Speaker 3: meant to be generating us wealth if we're choosing it
• 17:29
  Speaker 3: based on face value. We need to be making sure
• 17:32
  Speaker 3: that the properties we buy are in areas that have
• 17:34
  Speaker 3: good capital growth, in areas that have good rental yield,
• 17:38
  Speaker 3: that have good infrastructure around them, so that we are
• 17:41
  Speaker 3: actually getting the growth that we need to create financial freedom.
• 17:45
  Speaker 3: It's really important here as well, Ge to mention that,
• 17:48
  Speaker 3: like every single other investment asset that we talk about,
• 17:52
  Speaker 3: property is not something that you purchase with the intention
• 17:55
  Speaker 3: of getting rid of in one or two years when
• 17:57
  Speaker 3: you find your dream home. If we are purchasing property,
• 18:00
  Speaker 3: we are choosing that asset for a minimum of ten years.
• 18:04
  Speaker 3: And if you don't want to commit to something for
• 18:06
  Speaker 3: ten years, you are not meant to be purchasing at
• 18:08
  Speaker 3: that point in time. Because there are so many things
• 18:11
  Speaker 3: that you need to take into consideration there. We need
• 18:13
  Speaker 3: to be talking about capital growth, We need to be
• 18:15
  Speaker 3: talking about rental yield. We need to be talking about
• 18:18
  Speaker 3: how much money you are spending on stamp duty and
• 18:20
  Speaker 3: transfer costs, and all of the fees and additional costs
• 18:24
  Speaker 3: associated with buying and selling property. For example, how much
• 18:27
  Speaker 3: are you going to pay your real estate agent? So
• 18:29
  Speaker 3: all of those need to be built into the actual
• 18:33
  Speaker 3: property price. And because property is such a tangible asset,
• 18:37
  Speaker 3: so many people forget this. So so many people will
• 18:41
  Speaker 3: turn around and say, well, I've made money on this
• 18:43
  Speaker 3: property because I purchased it for five hundred thousand dollars
• 18:45
  Speaker 3: and I sold it for seven hundred thousand dollars a
• 18:48
  Speaker 3: couple of years later, and you're fantastic. That sounds like
• 18:50
  Speaker 3: a great return. But what they didn't tell you was
• 18:53
  Speaker 3: how much they paid in stamp duty, how much that
• 18:55
  Speaker 3: kitchen and bathroom renovation costs them, how much all of
• 18:58
  Speaker 3: the additional things that they've added to the house actually cost. So,
• 19:02
  Speaker 3: when it came down to it, and I've done the
• 19:04
  Speaker 3: numbers before with clients where they've bought for five hundred
• 19:06
  Speaker 3: thousand dollars sold for seven hundred thousand dollars, but they've
• 19:09
  Speaker 3: actually only made ten or fifteen thousand dollars profit because
• 19:12
  Speaker 3: they've put so much money into the property to actually
• 19:15
  Speaker 3: get it to that stage. So we need to be
• 19:18
  Speaker 3: really cautious of where our money goes. It's not like
• 19:21
  Speaker 3: a share. A share doesn't cost us additional money. They
• 19:24
  Speaker 3: don't call up and say, hey, Victoria, SA, it's three
• 19:27
  Speaker 3: o tinto. I'm just wondering we've ruined our hot water system.
• 19:32
  Speaker 3: Could you throw us fifteen hundred dollars to fix that?
• 19:35
  Speaker 3: You don't have that when you are investing in shares.
• 19:39
  Speaker 3: So we need to make sure that when we are
• 19:40
  Speaker 3: buying property, we are taking into consideration all the additional
• 19:44
  Speaker 3: fees and charges that are going to be associated with that.
• 19:46
  Speaker 1: Alrighty B.
• 19:47
  Speaker 2: So it sounds like there are benefits of plenty to investing,
• 19:50
  Speaker 2: which I hadn't really heard.
• 19:51
  Speaker 3: Of apparently, so given the conversation we've had, yes.
• 19:53
  Speaker 2: Exactly, But are there any quants?
• 19:57
  Speaker 3: There are a few things that you need to take
• 19:59
  Speaker 3: into ca consideration here. So first things first, are you
• 20:03
  Speaker 3: buying property just because you feel like property is the
• 20:05
  Speaker 3: asset you should have without having taken into consideration any
• 20:08
  Speaker 3: other asset class that exists. A property, whilst rent vesting
• 20:13
  Speaker 3: sounds really sexy, is a mortgage that you have to
• 20:16
  Speaker 3: pay regardless of what is going on in the economy.
• 20:19
  Speaker 3: You have a mortgage payment that you are obligated to pay.
• 20:23
  Speaker 3: Unlike shares, where you can choose to just not contribute
• 20:26
  Speaker 3: that month, a mortgage needs to be paid and if
• 20:29
  Speaker 3: you don't pay it, the bank is coming for you.
• 20:31
  Speaker 3: So we need to remember that whilst this sounds like
• 20:33
  Speaker 3: an attractive opportunity, it is a financial responsibility that you
• 20:37
  Speaker 3: are taking on. Another one is buying an investment first,
• 20:41
  Speaker 3: so so many people are hung up on buying their
• 20:44
  Speaker 3: dream home and purchasing a property that they own and
• 20:47
  Speaker 3: that they get to live in. And if you are
• 20:49
  Speaker 3: purchasing an asset to rent vest you don't actually get
• 20:53
  Speaker 3: to do that. And whilst I don't think that's a
• 20:55
  Speaker 3: negative thing because I'm very pro renting. I think a
• 20:59
  Speaker 3: lot of people might say, but I'm sacrificing the goal
• 21:02
  Speaker 3: of living in the property that I own. Another thing
• 21:05
  Speaker 3: to add to that is that you can't make a
• 21:08
  Speaker 3: home that you rent your own. It's something that a
• 21:11
  Speaker 3: lot of my clients talk about. They're like, oh, but
• 21:12
  Speaker 3: I can't paint the walls, but I can't do this,
• 21:15
  Speaker 3: or I can't have a dog. And a lot of
• 21:17
  Speaker 3: that is changing. We're now seeing the rental industry actually
• 21:21
  Speaker 3: trying to keep up with us because they know that,
• 21:24
  Speaker 3: unlike thirty years ago, renting these days is far more
• 21:28
  Speaker 3: long term, so people are offering longer leases. There have
• 21:32
  Speaker 3: been rules passed here in Victoria that you are allowed
• 21:34
  Speaker 3: pets and that they can't be declined. And I think
• 21:37
  Speaker 3: that landlords are now being far more flexible if you
• 21:40
  Speaker 3: are a good tenant. For example, if you call up
• 21:42
  Speaker 3: and just say, hey, could I paint a wall? Could
• 21:45
  Speaker 3: I get permission to hang out? I think it is
• 21:47
  Speaker 3: really fair to ask those questions. However, if you don't
• 21:50
  Speaker 3: like the tiles in the kitchen, you don't get the
• 21:52
  Speaker 3: opportunity to change them. So I think it's important to
• 21:55
  Speaker 3: be if you're renting and you're going to choose to
• 21:58
  Speaker 3: rent for a long period of time, not picking a
• 22:01
  Speaker 3: property that you want to tinker around with, but picking
• 22:04
  Speaker 3: one that does meet your expectations is important. But being
• 22:08
  Speaker 3: aware it isn't your home, so you don't get the
• 22:10
  Speaker 3: opportunity to change it. For me, that's not enough of
• 22:13
  Speaker 3: a deterrent to change my decision. However, it is worthy
• 22:17
  Speaker 3: of note, it's worthy of having that conversation. And last,
• 22:20
  Speaker 3: but not least, Georgia, it's really important to remember that
• 22:24
  Speaker 3: just like every single other asset, there are ebbs and flows,
• 22:28
  Speaker 3: So the property market can increase in value as much
• 22:31
  Speaker 3: as it can decrease in value, and if we are
• 22:34
  Speaker 3: going to be committing to a long term financial responsibility,
• 22:38
  Speaker 3: we have to be in a financial position to be
• 22:40
  Speaker 3: able to ride that out. And that means if your
• 22:42
  Speaker 3: property is valued at less, being in a position where
• 22:45
  Speaker 3: you are not forced to sell is essential. So making
• 22:49
  Speaker 3: sure that you're talking to a good mortgage broker about
• 22:52
  Speaker 3: your serviceability and about how to purchase a property that
• 22:55
  Speaker 3: aligns with your goals but also your financial abilities is
• 22:59
  Speaker 3: really really important, and a broker is going to be
• 23:01
  Speaker 3: literally your best friend here when making sure that you
• 23:04
  Speaker 3: are making decisions that are in line with not only
• 23:07
  Speaker 3: your values, but your financial situation.
• 23:09
  Speaker 2: Do we need to be chatting to brokers if we
• 23:11
  Speaker 2: want to make this happen.
• 23:12
  Speaker 3: I am a very big believer in putting your money
• 23:15
  Speaker 3: in the hands of experts. I am not on the
• 23:18
  Speaker 3: page of just making decisions for yourself. Too often do
• 23:21
  Speaker 3: I see people going and getting loans that don't actually
• 23:25
  Speaker 3: benefit them, that are structured incorrectly, that don't have the
• 23:29
  Speaker 3: flexibility that my clients need. And more often than not,
• 23:33
  Speaker 3: when I do see a client that has finally realized
• 23:35
  Speaker 3: that they are actually locked into a fixed term that
• 23:38
  Speaker 3: I can't do a lot about for maybe one or
• 23:40
  Speaker 3: two years. So I think it's important to get a
• 23:43
  Speaker 3: professional on your side. A mortgage broker does this day in,
• 23:47
  Speaker 3: day out and make sure you are in the best
• 23:50
  Speaker 3: possible financial position. They will be able to weigh up
• 23:53
  Speaker 3: all of the pros and cons. They will be able
• 23:55
  Speaker 3: to make sure that you're not missing any of the fees, chargers,
• 23:57
  Speaker 3: stamp duty, anything included that you might miss Because you're
• 24:01
  Speaker 3: not a professional investor, you are not a professional property buyer.
• 24:04
  Speaker 3: Talk to someone who is and they will be able
• 24:07
  Speaker 3: to hold your hand through that process. And more importantly
• 24:10
  Speaker 3: here that service is free. It does not cost you
• 24:14
  Speaker 3: anything to see a broker. Because a broker gets paid
• 24:17
  Speaker 3: by the bank that they end up taking the loan
• 24:20
  Speaker 3: out with, it doesn't actually change that broker's decision to
• 24:23
  Speaker 3: go with a particular bank, unless you see a broker
• 24:26
  Speaker 3: who works for a bank, which I would discourage because
• 24:29
  Speaker 3: they don't have the ability to weigh up every opportunity
• 24:32
  Speaker 3: in the market for you, which I think is very,
• 24:34
  Speaker 3: very valuable. But seeing a broker, they are going to
• 24:37
  Speaker 3: be able to get the best possible deal for you
• 24:39
  Speaker 3: and put you in the safest possible position that you
• 24:42
  Speaker 3: can be. The world is a pretty strange place to
• 24:48
  Speaker 3: be at the moment, and social media and our Facebook
• 24:50
  Speaker 3: group are absolutely flooded with information about COVID nineteen. Our
• 24:54
  Speaker 3: number one priority, as it always has been, is to
• 24:57
  Speaker 3: protect the health of our team and our community, So
• 25:00
  Speaker 3: we made the decision this week to not record with
• 25:02
  Speaker 3: our Money Diarist in light of this ever evolving situation,
• 25:06
  Speaker 3: though we have recorded a COVID nineteen podcast that'll be
• 25:09
  Speaker 3: released later in the week. Whilst health is incredibly important
• 25:13
  Speaker 3: and we need to protect that fiercely. Finance and money
• 25:17
  Speaker 3: are so closely tied to what's going on, and whilst
• 25:20
  Speaker 3: there is so much going on in this world, feeling
• 25:23
  Speaker 3: financially prepared will hopefully help you feel a little bit
• 25:26
  Speaker 3: less stressed and a little bit more in control at
• 25:29
  Speaker 3: a time when not much is in our control at all.
• 25:32
  Speaker 3: So keep an eye out for that because it'll be
• 25:34
  Speaker 3: uploaded later in the week. But keeping in tradition of
• 25:36
  Speaker 3: our Shes on the Money podcast, we still have a
• 25:39
  Speaker 3: listener question, so let's jump into.
• 25:41
  Speaker 4: That, Hei Victoria. I've always wanted to purchase the property,
• 25:46
  Speaker 4: and of the last eighteen months, I've started to collect
• 25:48
  Speaker 4: a really great deposit. Just wondering if I rent vest
• 25:51
  Speaker 4: instead of living in the home I purchased, do I
• 25:54
  Speaker 4: need less of a deposit and what other costs do
• 25:57
  Speaker 4: I need to take into consideration? Thanks?
• 26:00
  Speaker 1: Where does she begin? Victoria?
• 26:01
  Speaker 3: So there are a lot that people just don't seem
• 26:04
  Speaker 3: to take into consideration when deciding to purchase a property.
• 26:07
  Speaker 3: And this is why I am a massive advocate once
• 26:10
  Speaker 3: again of having a good broker on your team, because
• 26:12
  Speaker 3: they're going to be able to outline all of those
• 26:14
  Speaker 3: fees in chargees for you. Yep. They actually have access
• 26:17
  Speaker 3: to really really wizard like calculators that can spit out
• 26:21
  Speaker 3: exactly what you're going to be up for if you
• 26:23
  Speaker 3: purchase specific properties, and I think that's incredibly valuable. But
• 26:27
  Speaker 3: something that applies to everybody, regardless of whether you are
• 26:30
  Speaker 3: rent vesting or buying the property of your dreams to
• 26:33
  Speaker 3: move into, is that you need a strong deposit. So
• 26:37
  Speaker 3: we always, always, always at Zella recommend that you have
• 26:40
  Speaker 3: about a twenty percent deposit because anything less than that
• 26:43
  Speaker 3: puts you at more risk. We're not saying that you
• 26:46
  Speaker 3: can't get a loan with less of a deposit. We
• 26:48
  Speaker 3: all know that that is not true. We can actually
• 26:51
  Speaker 3: access loans for five percent, it happens. We don't necessarily
• 26:55
  Speaker 3: get behind that, though, because if you only have a
• 26:58
  Speaker 3: five percent deposit, you're putting yourself at a lot of risk.
• 27:02
  Speaker 3: If the market declines and property prices decrease, you could
• 27:06
  Speaker 3: quite easily put yourself in a position where the debt
• 27:09
  Speaker 3: you owe on a property is higher than the actual
• 27:13
  Speaker 3: value of the property. So I would never want a
• 27:16
  Speaker 3: client to be in that position. And I think that
• 27:18
  Speaker 3: having a really strong deposit is essential. Having a strong
• 27:21
  Speaker 3: deposit also means you've really worked hard to get this property,
• 27:25
  Speaker 3: and you've taught yourself how to save and how to
• 27:28
  Speaker 3: allocate funds, so when you finally do get that mortgage,
• 27:31
  Speaker 3: it's not as painful to service that. So for everybody
• 27:35
  Speaker 3: that is getting a mortgage, I spoke before about additional
• 27:38
  Speaker 3: fees and charges. It's not just the total property purchase price.
• 27:42
  Speaker 3: For example, if you're spending five hundred thousand dollars on
• 27:45
  Speaker 3: a property, that is not all you are up for.
• 27:48
  Speaker 3: It's actually a percentage that you need. So the deposit
• 27:50
  Speaker 3: needs to be a percentage of the total cost of
• 27:53
  Speaker 3: the transaction, not just the property, and that includes a
• 27:57
  Speaker 3: whole heap of additional fees and charges above and beyond
• 28:00
  Speaker 3: that purchase price. For example, stamp duty, lender's mortgage insurance.
• 28:04
  Speaker 3: If you take it out, valuations, conveyances, pest inspections, the
• 28:09
  Speaker 3: list goes on. And that's why again I'm going to
• 28:12
  Speaker 3: reiterate having a broker on your team is going to
• 28:14
  Speaker 3: make sure that you are covered for this because I
• 28:16
  Speaker 3: have had clients that have been approved for mortgages, been
• 28:20
  Speaker 3: really excited about it, gone and put an offer in
• 28:23
  Speaker 3: on a property and then had to pull out because
• 28:25
  Speaker 3: they actually didn't have the funds to meet the transaction.
• 28:28
  Speaker 3: They had the funds to literally meet the value of
• 28:31
  Speaker 3: the property, but they didn't have the funds to make
• 28:33
  Speaker 3: sure that they could actually afford the property. If you
• 28:36
  Speaker 3: are a first time purchaser, which it sounds like our
• 28:39
  Speaker 3: listener is because she says she's been thinking about getting
• 28:41
  Speaker 3: into property, it's important to know that there are a
• 28:44
  Speaker 3: number of different concessions available to first home buyers if
• 28:48
  Speaker 3: they move into their property. These often, and whilst I
• 28:51
  Speaker 3: can't talk about every single state, these and everything does change,
• 28:56
  Speaker 3: these grants aren't available for first time investments. But as
• 28:59
  Speaker 3: it stands at the moment, if you're buying a property
• 29:01
  Speaker 3: here in Victoria, you can purchase an investment property and
• 29:05
  Speaker 3: still get the stamp duty concessions and concessions on your
• 29:09
  Speaker 3: first home that you move into later down the track.
• 29:11
  Speaker 3: It's not to say that they won't change the rules
• 29:14
  Speaker 3: right now. You could buy an investment property and then
• 29:16
  Speaker 3: also go and buy your first home and get a
• 29:19
  Speaker 3: whole heap of concessions on the home that you eventually
• 29:21
  Speaker 3: move into. Ye if you're not a first home buyer,
• 29:23
  Speaker 3: though everything else in terms of additional fees and charges
• 29:26
  Speaker 3: still relates to you. You are just in a position
• 29:29
  Speaker 3: where you might be able to use some of the
• 29:31
  Speaker 3: equity in your property to leverage getting into a property.
• 29:35
  Speaker 3: It just means you're pulling a deposit from somewhere else
• 29:38
  Speaker 3: rather than just saving up for it. Again, so I
• 29:40
  Speaker 3: think it's important to note that, yes, if you've got property,
• 29:43
  Speaker 3: it could be helpful, but it doesn't necessarily mean that
• 29:46
  Speaker 3: it's going to get you into your next home asap.
• 29:49
  Speaker 2: So would you say that the deposit would be the
• 29:50
  Speaker 2: main thing stopping people from getting into property.
• 29:53
  Speaker 3: No, sadly not. There are so many different hurdles that
• 29:56
  Speaker 3: I'm sorry, there are so many different hurdles that need
• 29:59
  Speaker 3: to be yumped over when getting into property. But I
• 30:02
  Speaker 3: believe that there are two main ones. Yes, you are correct.
• 30:05
  Speaker 3: The deposit is the number one thing that we actually
• 30:07
  Speaker 3: need to make Saving for it is really hard. But
• 30:10
  Speaker 3: once we have our deposit and we've got enough money
• 30:12
  Speaker 3: for all of the additional fees associated with that transaction,
• 30:16
  Speaker 3: their second, really big issue is actually being able to
• 30:19
  Speaker 3: service that loan. And it is so heartbreaking when I
• 30:23
  Speaker 3: have clients come to me that are on lower salaries
• 30:26
  Speaker 3: that say, hey, Victoria, I have worked my life away
• 30:29
  Speaker 3: to save for property. It has been my goal, and
• 30:32
  Speaker 3: I go, I am so here for this. Congratulations. They'll
• 30:35
  Speaker 3: have a two hundred and fifty thousand dollar deposit, they
• 30:37
  Speaker 3: will have saved epically like it is so impressive. But
• 30:41
  Speaker 3: then they earn sixty or seventy thousand dollars and the
• 30:44
  Speaker 3: property that they want to purchase because they've calculated that
• 30:47
  Speaker 3: two hundred and fifty thousand dollars is like one point
• 30:49
  Speaker 3: two million dollar property, you actually can't have that property
• 30:53
  Speaker 3: because you cannot on your income service that debt. So
• 30:57
  Speaker 3: being aware that you need to one save for the deposit,
• 31:01
  Speaker 3: but then two you also need to meet the criteria
• 31:03
  Speaker 3: of servicing that debt is really really important and it
• 31:06
  Speaker 3: can be the one thing that once you've gotten over
• 31:09
  Speaker 3: that you've been saving for that home deposit, it can
• 31:11
  Speaker 3: be the thing that gets you out of the game again.
• 31:17
  Speaker 2: That is all we have time for today, but before
• 31:20
  Speaker 2: we head off, we need to wrap the boring but
• 31:21
  Speaker 2: important stuff. But before we do that, there is also
• 31:24
  Speaker 2: some exciting news that some of you may already be across.
• 31:27
  Speaker 2: Victoria is writing the shehes on the Money book, which
• 31:30
  Speaker 2: is going to be our ultimate finance Bible, and honestly
• 31:33
  Speaker 2: I cannot.
• 31:33
  Speaker 3: Wait me either.
• 31:36
  Speaker 2: So that means that we'll be pressing pause on the
• 31:38
  Speaker 2: podcast for a little while, apologies, so that Victoria can
• 31:40
  Speaker 2: meet her deadline and make her publisher and us superly happy.
• 31:44
  Speaker 2: Rest assured, though, we will be back for a very
• 31:47
  Speaker 2: exciting season three very soon. If you do have any
• 31:49
  Speaker 2: episode of topics you'd like us to cover up, please
• 31:51
  Speaker 2: get in touch on the Facebook page. So we want
• 31:53
  Speaker 2: to make sure the content we're bringing you is relevant
• 31:55
  Speaker 2: and it's what you want to hear. Now, back to
• 31:57
  Speaker 2: the boring. The advice shed on Shoes on the Money
• 32:00
  Speaker 2: is general in nature and does not consider your individual circumstances.
• 32:03
  Speaker 2: She's on the money if it's purely for educational purposes
• 32:06
  Speaker 2: and should not be relied upon to make an investment
• 32:08
  Speaker 2: or financial decision and stressless, we promise. Victoria Devine is
• 32:12
  Speaker 2: an authorized representative of Consultant Financial Advisors Proprietary Limited ABN
• 32:17
  Speaker 2: sixty five six three seven three double nine five AFSL
• 32:20
  Speaker 2: two three oh three two three. And thank you, of
• 32:23
  Speaker 2: course to Ryan John for whipping our wild chat into
• 32:25
  Speaker 2: the podcast.
• 32:26
  Speaker 3: You guys, we would absolutely love it if in the
• 32:29
  Speaker 3: time that we are away, you still keep in contact
• 32:32
  Speaker 3: via our Facebook group where our community. You'll be there,
• 32:36
  Speaker 3: George will be there with bells on where our community
• 32:38
  Speaker 3: shares money, tips and tricks every single day, free of judgment.
• 32:42
  Speaker 3: So She's on the Money on Facebook and join us.
• 32:44
  Speaker 3: If Facebook's not your thing, find us on Instagram. We're
• 32:47
  Speaker 3: at She's on the Money a US.
• 32:49
  Speaker 2: See you next season.
• 32:50
  Speaker 3: Go see your friends.