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“Rent vs Buy: From $60k Savings to a Multi Million‑Dollar Portfolio” · TFS WealthCast

• 0:04
  SPEAKER_00: It's the TFS market.
• 0:06
  SPEAKER_00: The money market.
• 0:09
  SPEAKER_00: Financial freedom is more than just a gold.
• 0:12
  SPEAKER_00: Without further ado, let's dive in.
• 0:16
  SPEAKER_01: Hi guys, welcome back to another episode of the TFS Worldcast.
• 0:20
  SPEAKER_01: I'm Vishity, your host today.
• 0:22
  SPEAKER_01: And today we're going to be asking questions from our CEO and CWO, Mr.
• 0:27
  SPEAKER_01: Pramu Rodrigo and Mrs.
• 0:29
  SPEAKER_01: Sonali Rodrigo, husband and wife.
• 0:32
  SPEAKER_01: Alright, let's kick it off.
• 0:34
  SPEAKER_01: So we're diving into the rent versus buy debate for 2025, the latest updates to the home guarantee scheme.
• 0:42
  SPEAKER_01: And we're going to ask Pramu and Sonali for their insights and their own experiences with both buying and building property in Australia.
• 0:50
  SPEAKER_01: Now, without any further ado, let's ask them guys, what do you all think about the new changes to the first home loan deposit scheme?
• 1:00
  SPEAKER_02: Sonali, you want me to go or do you like to go?
• 1:03
  SPEAKER_03: Um so from the 1st of October, the government has introduced or changed a few things in the first home loan deposit scheme.
• 1:15
  SPEAKER_03: It's now called the first home guarantee scheme.
• 1:18
  SPEAKER_03: Uh previously there were a lot of restrictions around this, but now they've removed the majority of them.
• 1:23
  SPEAKER_03: So for example, there were income caps before.
• 1:26
  SPEAKER_03: So it um it was based on a person's taxable income or a couple's taxable income.
• 1:32
  SPEAKER_03: Those are now going to be abolished.
• 1:34
  SPEAKER_03: Um, they also had a certain number of places available.
• 1:37
  SPEAKER_03: So not everybody who was a first-home buyer could uh make use of this scheme.
• 1:42
  SPEAKER_03: Now it's open to anyone who is a first-home buyer.
• 1:45
  SPEAKER_03: So essentially there aren't any um there's no cap on the places.
• 1:50
  SPEAKER_03: Um, it will be available for anyone who wants to um buy their first home.
• 1:54
  SPEAKER_02: So it's like unlimited places.
• 1:55
  SPEAKER_02: Yes.
• 1:56
  SPEAKER_03: Yeah, unlimited places.
• 1:58
  SPEAKER_03: Um they've also made changes to the uh state uh property price cap.
• 2:04
  SPEAKER_03: So previously, for example, in Victoria, um the property price cap was 800,000.
• 2:10
  SPEAKER_03: Now they're changing it to 950,000.
• 2:13
  SPEAKER_03: So if you buy a property under 950,000, you would be able to make use of this scheme.
• 2:19
  SPEAKER_03: Um whereas previously, if your property price exceeded 800,000, you couldn't.
• 2:24
  SPEAKER_03: So we so this tells me that they are expecting the prices to go up um in the near future.
• 2:31
  SPEAKER_03: And therefore, that is why one of the reasons why they've sort of adjusted the price caps here.
• 2:39
  SPEAKER_03: Um so yeah, so it's going to be open to a lot more people who previously couldn't make use of this.
• 2:46
  SPEAKER_03: So we've got to see a lot of activity in the first home buyer uh segment.
• 2:52
  SPEAKER_02: Yeah, so uh so basically what Sonali touched touch point about you know New South Wales.
• 3:00
  SPEAKER_02: Um 1.5 million dollars, right?
• 3:04
  SPEAKER_02: Now think about it.
• 3:05
  SPEAKER_02: Everybody in New South Wales as a first home buyer was struggling to buy the first first property within that uh cap.
• 3:13
  SPEAKER_02: So because there are now there are no properties there.
• 3:16
  SPEAKER_02: Literally.
• 3:17
  SPEAKER_02: Now this is the best opportunity for them, you know.
• 3:21
  SPEAKER_02: Uh whatever the savings they have.
• 3:23
  SPEAKER_02: Now you you can go to the market and buy your property.
• 3:26
  SPEAKER_02: There are there are enough enough properties within 1.5.
• 3:31
  SPEAKER_02: So guys, uh uh take use of it.
• 3:34
  SPEAKER_02: Make sure you you you get the right approval, make sure you you are approved within the scheme as well.
• 3:40
  SPEAKER_02: That is important.
• 3:42
  SPEAKER_02: Um so you know, take use of this opportunity.
• 3:47
  SPEAKER_01: Thanks for that, guys.
• 3:48
  SPEAKER_01: Now now let's let's let's go.
• 3:50
  SPEAKER_01: Let's talk about a topic that has a lot of debate: buying versus renting.
• 3:55
  SPEAKER_01: If we talk about the long-term impacts of buying versus renting, so financially speaking, over the long term, is it generally better to buy a home or to keep renting?
• 4:05
  SPEAKER_01: Uh, I think this is a question for Sonali.
• 4:08
  SPEAKER_03: And I'll answer with my usual response.
• 4:11
  SPEAKER_03: It depends.
• 4:12
  SPEAKER_03: It depends on a lot of factors.
• 4:15
  SPEAKER_03: Um, it depends on where you're buying, how much you're planning on spending, what the interest rate is at the time, um, and a whole host of other things.
• 4:26
  SPEAKER_03: So um, as usual, I'm the sort of person who would want to go based on numbers and facts.
• 4:34
  SPEAKER_03: So humor me a little bit here.
• 4:37
  SPEAKER_03: Um, so let's let's um compare a couple of scenarios, right?
• 4:42
  SPEAKER_03: So if you were spending, let's say,$650 a week in rent, um, per month, you would be spending$2,817.
• 4:55
  SPEAKER_03: Now, what does that get to you in terms of a mortgage?
• 4:58
  SPEAKER_03: Um, it might not be enough to buy a house in the area that you want.
• 5:03
  SPEAKER_03: Let's say you are happy to spend a little bit more and then you go for a mortgage about$650,000.
• 5:10
  SPEAKER_03: Uh, based on the 5.5% rate that we have going at the moment, uh, you'd be spending about$3,691 per month if you were to buy and get a mortgage, right?
• 5:23
  SPEAKER_03: So now the difference, as you can see, renting initially is going to cost you lower in terms of monthly cash flow, the mortgage would cost you a little bit higher than that.
• 5:33
  SPEAKER_03: So the difference is about$875 uh per month if you were to buy uh in an area that you wanted to live in.
• 5:43
  SPEAKER_03: So, what does this mean over the long term?
• 5:46
  SPEAKER_03: Now, if you were renting, let's say after 10 years, you were renting, you continued to pay the 2,800 whatever amount, what would you have to show for it?
• 5:56
  SPEAKER_03: Nothing really.
• 5:57
  SPEAKER_03: You've just got year, 10 years of rent payments and nothing much to show for that.
• 6:03
  SPEAKER_03: Whereas if you bought your own property, yes, you would have paid a little bit extra per month, about$874 extra per month.
• 6:11
  SPEAKER_03: However, over the 10 years, assuming even a very conservative growth rate of 5% per annum, your property would be giving you equity over$400,000, right?
• 6:25
  SPEAKER_03: So when you really think about it, a difference of$870 a month will give you a massive leg up after 10 years of over$400,000.
• 6:36
  SPEAKER_03: Now, over 10 years, is that something you can save up for a lot of people?
• 6:41
  SPEAKER_03: The answer would be no, right?
• 6:43
  SPEAKER_03: So the the if if you look at, you know, obviously this in this scenario, you're way better off buying.
• 6:50
  SPEAKER_03: Um so yeah, that's that's I think an easily um, well, it's it's a simple scenario to illustrate what I'm trying to say.
• 6:59
  SPEAKER_03: Um, that over the long run, usually buying outperforms renting.
• 7:03
  SPEAKER_03: Because at the end of 10 years, after you pay rent, you're paying um somebody else's mortgage.
• 7:08
  SPEAKER_03: You really don't have anything to show for it.
• 7:10
  SPEAKER_03: Whereas if you were to buy, even if it might mean that you're paying a little bit extra per month, um, if you can afford it, if you budget right, you should be able to um have quite a significant amount of equity um built up in your property.
• 7:27
  SPEAKER_03: Now, the only time the renting scenario would make sense is obviously if there was no capital growth in property.
• 7:36
  SPEAKER_03: Now has there ever been no capital growth in property?
• 7:40
  SPEAKER_03: No, usually over the long term, you do get quite a significant amount of capital growth in property.
• 7:45
  SPEAKER_03: So in Australia.
• 7:47
  SPEAKER_03: In Australia, yeah.
• 7:48
  SPEAKER_03: So safe to say, um, in my opinion, buying um completely outperforms renting.
• 7:54
  SPEAKER_02: Yeah.
• 7:55
  SPEAKER_02: So, ladies and gentlemen, that that's coming from a financial planner who comes with fats, right?
• 8:01
  SPEAKER_02: So it's like music to my ear, you know, yeah, and she's saying, you know, go and invest in property.
• 8:08
  SPEAKER_02: You know, now um again, very simple for me.
• 8:12
  SPEAKER_02: Um all I look at is an expense when you're renting, but when you're uh having your property or paying your mortgage, it's a savings.
• 8:24
  SPEAKER_03: Yeah, it's cost savings.
• 8:26
  SPEAKER_03: Post savings, right?
• 8:27
  SPEAKER_03: Um, especially good for people who are not very good at saving.
• 8:30
  SPEAKER_03: Yeah, you know, you you you somehow or the other you manage to pay your mortgage, and then at the end of 10, 15, 20 years, you'll have a significant amount in equity.
• 8:41
  SPEAKER_02: So I mean, worst case scenario you can recover that money back.
• 8:44
  SPEAKER_03: That's right.
• 8:45
  SPEAKER_03: Right.
• 8:45
  SPEAKER_03: Yeah, exactly.
• 8:46
  SPEAKER_02: That's absolute worst case scenario.
• 8:48
  SPEAKER_03: Yeah.
• 8:48
  SPEAKER_03: Whereas with renting, it's just gone.
• 8:50
  SPEAKER_02: Yeah.
• 8:51
  SPEAKER_02: Buy versus rent, I think buying, you just won that game easily.
• 8:58
  SPEAKER_03: Hang on.
• 8:59
  SPEAKER_03: I do want to say a couple more things though.
• 9:04
  SPEAKER_03: So I did say that if you were to rent, your initial cash outflow would be a lot lower compared to a mortgage, right?
• 9:12
  SPEAKER_03: So in my scenario, it was$874 lower.
• 9:15
  SPEAKER_03: You had to pay um$874 more with a mortgage.
• 9:20
  SPEAKER_03: Now, if you were to save that$874, you rent and then you save the$874.
• 9:27
  SPEAKER_03: Let's say that you put it towards a savings account, giving you, say, 2% um return, over 10 years, that would grow to about$100,000 or$115,000, let's say, with compounding.
• 9:41
  SPEAKER_03: Now, if you were to invest it in shares, which might give you a higher return, say 10%, um that would give you about 167,000.
• 9:51
  SPEAKER_03: So whatever you do, really, buying still outperforms.
• 9:56
  SPEAKER_03: Why is that?
• 9:58
  SPEAKER_03: Because what you're saving and what you're investing is just a small saving that you do of 874, right, per month.
• 10:06
  SPEAKER_03: Whereas with leveraging, with property, you even if it's a conservative growth rate of 5%, that applies to the entire asset, right?
• 10:17
  SPEAKER_03: Because if you buy something for about 700,000, 5% growth on that works out to be$35,000 on the entire asset, not just a tiny, tiny portion of it, right?
• 10:28
  SPEAKER_03: So compounding that adds up to significant amount over the long term.
• 10:33
  SPEAKER_03: That is why you know no one ever really got rich saving money.
• 10:38
  SPEAKER_03: You have to invest, yeah.
• 10:40
  SPEAKER_03: Right?
• 10:40
  SPEAKER_03: And you have to invest in the right assets to sort of give you over the long term the equity position that you're looking for.
• 10:47
  SPEAKER_03: So um, yeah.
• 10:50
  SPEAKER_02: So so sonali, now as a as a first home buyer, instead of renting, it's better to buy, right?
• 10:56
  SPEAKER_02: So it's clear, guys.
• 10:58
  SPEAKER_02: Now the the the next level up is pretty much when you using that equity and start building properties within your portfolio, right?
• 11:08
  SPEAKER_02: You you can start build building other investment properties under your personal names, your company names, trust, you know, the list goes on.
• 11:16
  SPEAKER_02: So imagine the compounding growth after 10-15 years you could possibly acquire for yourself.
• 11:25
  SPEAKER_02: It's a crazy amount of numbers we're talking about here.
• 11:27
  SPEAKER_02: For sure.
• 11:28
  SPEAKER_02: For sure.
• 11:29
  SPEAKER_02: For a very small amount of deposit to enter to the market and and and the ability for you to to become, um, is it fair for me to say, Sonali, um financially free um at a at a level when you retire in in property?
• 11:47
  SPEAKER_03: Yeah, you you you have to be smart about how you go about it though.
• 11:52
  SPEAKER_03: Um that's what I that's what we always say to our first home buyer clients, right?
• 11:57
  SPEAKER_03: So um what you want to do in the first property that you buy, yeah, it's your first foray into the property market, right?
• 12:05
  SPEAKER_03: So um we see a lot of customers who want to put everything and anything that they ever wanted in a property in their first home, which you know sometimes doesn't bode well for the future.
• 12:17
  SPEAKER_03: What you want to do in the first instance is now the government has a lot of incentives going on.
• 12:23
  SPEAKER_03: They have obviously we talked about initially the no LMI scheme, which we call the first home guarantee scheme, where you only need a 5% deposit to get into the property market as a first-home buyer.
• 12:34
  SPEAKER_03: Um, they also have in most states uh savings on stamp duty.
• 12:39
  SPEAKER_03: So you don't have to pay a stamp duty if you're a first-home buyer, as long as your property purchase is under a certain uh threshold.
• 12:45
  SPEAKER_03: Yeah.
• 12:46
  SPEAKER_03: Um, there's also first-home buyer grants available.
• 12:49
  SPEAKER_03: For example, in Victoria, we have 10,000.
• 12:52
  SPEAKER_03: In Queensland, we have 30,000.
• 12:54
  SPEAKER_03: So, I mean, this is what we did when we got into the property market initially.
• 12:59
  SPEAKER_03: At the time, I think they were giving us$20,000 as first home oil grants.
• 13:04
  SPEAKER_02: I think we missed out when when we started uh when we were thinking about buying, I think they were giving about$40,000.
• 13:11
  SPEAKER_02: It came down to 35.
• 13:12
  SPEAKER_02: We couldn't get the deposits fast enough.
• 13:15
  SPEAKER_02: So we got 20,000 first home owners' grant, I believe.
• 13:19
  SPEAKER_02: That's the one.
• 13:20
  SPEAKER_02: Yeah.
• 13:20
  SPEAKER_02: Um I mean, this is free money.
• 13:22
  SPEAKER_02: This is this is the money from the government.
• 13:25
  SPEAKER_02: I mean, we all pay taxes, right?
• 13:28
  SPEAKER_02: Um now this is one of those opportunities that you get as a first-home buyer to get something back.
• 13:33
  SPEAKER_02: To get something back from the government.
• 13:35
  SPEAKER_02: Um so yeah, I mean, absolutely.
• 13:39
  SPEAKER_03: So what we always say is make use of all of the available grants and incentives as a first-home buyer, right?
• 13:46
  SPEAKER_03: So if you do have money saved up, even if you can go for something that is above the thresholds, I would advise you not to look at this as an investment tool, a foundation to build on for the future.
• 14:00
  SPEAKER_03: So your first home, as much as it is a lifestyle choice, it should also be an investment tool, right?
• 14:08
  SPEAKER_03: Yeah.
• 14:08
  SPEAKER_03: Um, you know, so that's I I mean, that's what we did.
• 14:14
  SPEAKER_03: So our first home uh enabled us to get into um our second one and then using the equity we've, you know, built on from there, right?
• 14:25
  SPEAKER_03: And that is partly because we didn't overcapitalize for the area, right?
• 14:30
  SPEAKER_03: Yeah.
• 14:30
  SPEAKER_03: What I mean by overcapitalizing is, you know, if you What do you what do you what do you what you won you want me to explain that overcapitalizing?
• 14:39
  SPEAKER_02: No, I think I think I will be the best person to explain that.
• 14:42
  SPEAKER_03: Yeah, being a woman, I guess we kind of want to have, you know, a lot of things in the first house, right?
• 14:50
  SPEAKER_02: Yeah.
• 14:51
  SPEAKER_03: Um we see a lot of clients come in and chandeliers too.
• 14:55
  SPEAKER_03: Yeah, chandeliers to walk in wardrobes and you know, soft clothes drawers and you name it, right?
• 15:03
  SPEAKER_03: But the thing is we want to make sure that we stay within um a certain budget for your first home, because otherwise you will lose the ability to use it as a tool for future investments, right?
• 15:17
  SPEAKER_03: So um if you have spent too much money um in the first instance, it'll take a lot of years for you to catch up to the prices that are you know prevailing in the area, yeah.
• 15:31
  SPEAKER_03: Which will mean that you won't be able to access the equity for a lot of long time.
• 15:35
  SPEAKER_02: It's basically bad.
• 15:37
  SPEAKER_02: Yeah, it's basically when you're buying a property, you should buy within the market what is in that area.
• 15:46
  SPEAKER_02: So if you if you if you're buying a property in uh, let's say, you know, in Victoria, if you're buying a property in uh uh uh hypothetically speaking, let's let's take majority of people these days, first home buyers by an officer.
• 15:59
  SPEAKER_02: Right.
• 16:00
  SPEAKER_02: Don't go and spend a million dollars for your first home.
• 16:04
  SPEAKER_02: Because you're you're way above the market, right?
• 16:07
  SPEAKER_02: If you go and spend your uh first home between 750 or uh to eight hundred thousand, you're within that market range.
• 16:16
  SPEAKER_02: So you're you're giving room to your property to grow, you're giving yourself uh enough time to pay down the mortgage, uh, and also giving yourself uh to have a lifestyle, you know.
• 16:29
  SPEAKER_02: You do you do you get you get to have parties in your house, you get to live.
• 16:33
  SPEAKER_03: Yeah, so all your money will be spent on the mortgage, right?
• 16:36
  SPEAKER_02: Yeah.
• 16:37
  SPEAKER_02: So so you know, one of the main things I would say to first home buyers, don't overcapitalize, don't go beyond beyond the market uh uh median price.
• 16:47
  SPEAKER_02: Try and buy it within.
• 16:49
  SPEAKER_02: Um you you may have enough money to to to build a bigger house or buy an expensive house.
• 16:57
  SPEAKER_02: But you're first home, just compromise it, save that money, give that money, maybe, maybe that'll be the time that you use that in the offset account, and uh you know uh savings account could come into play.
• 17:08
  SPEAKER_02: Uh if you have enough money, if you have more money.
• 17:11
  SPEAKER_02: So I think uh uh understanding the market is also very important, and understanding the uh uh timing of the market is also important, in my opinion, Sunali.
• 17:21
  SPEAKER_02: Uh where to buy, how to buy, what kind of a property, whether you need a massive land?
• 17:27
  SPEAKER_02: Uh majority of people I've seen, or not majority, some people I have seen they want bigger land.
• 17:32
  SPEAKER_02: Um I ask them, so yeah, that's good.
• 17:34
  SPEAKER_02: Good to buy bigger land.
• 17:36
  SPEAKER_02: What's the plan of plan for it?
• 17:39
  SPEAKER_02: Uh I can I can subdivide it later.
• 17:42
  SPEAKER_02: When you say later, when?
• 17:44
  SPEAKER_02: Do you know the cost behind subdivisions?
• 17:46
  SPEAKER_02: Do you have that money to do the subdivision?
• 17:50
  SPEAKER_02: What I once you subdivide it, what are you planning on doing?
• 17:52
  SPEAKER_02: Uh are you are you planning on selling it?
• 17:54
  SPEAKER_02: So have you have you looked at the CGT?
• 17:58
  SPEAKER_02: Are you planning on building something?
• 18:00
  SPEAKER_02: What's the building cost is going to be?
• 18:01
  SPEAKER_02: Have you put those things into play?
• 18:03
  SPEAKER_02: So a lot of people make those kind of mistakes in what I've seen.
• 18:07
  SPEAKER_02: Uh I want to buy a bigger land because the land value goes up.
• 18:11
  SPEAKER_02: 100% yes, guys.
• 18:12
  SPEAKER_02: It goes up.
• 18:13
  SPEAKER_02: But do it within your means.
• 18:16
  SPEAKER_02: You do you may not have the cap capabilities or capacity to subdivide it.
• 18:21
  SPEAKER_03: Right now.
• 18:22
  SPEAKER_02: Right now.
• 18:23
  SPEAKER_03: So I think I see a lot of people trying to cram a lot of strategies into their first home.
• 18:29
  SPEAKER_03: Um what people should be doing, in my opinion, is making use of all the incentives and grants, using as less money as possible and getting into the property market, saving as much as they can in their offset, building up the equity.
• 18:45
  SPEAKER_03: And then the next property you look at, you can look at, you know, putting some of these strategies into play.
• 18:51
  SPEAKER_03: Into play.
• 18:51
  SPEAKER_03: Into play.
• 18:52
  SPEAKER_03: Because when there's free money, guys, why not?
• 18:55
  SPEAKER_03: You should just make use of it, get as much as you can out, and then yeah, instead of delaying, get on with it.
• 19:03
  SPEAKER_02: So, guys, look, Sonali and I are giving this information to you guys.
• 19:09
  SPEAKER_02: Um we're not just giving it for the sake of it, guys.
• 19:13
  SPEAKER_02: We we have done this um before 40.
• 19:17
  SPEAKER_02: I don't mind sharing this.
• 19:18
  SPEAKER_02: Sonali, before two of us turned 40, uh uh, we went uh over 10 properties in our portfolios.
• 19:27
  SPEAKER_02: Portfolio.
• 19:28
  SPEAKER_02: Um and and uh we be we did that within uh 10 years or just just within 10 years, as far as I can remember, that's where we started the first home, and uh that's how we built.
• 19:41
  SPEAKER_02: We are still building, so we be we we're still young.
• 19:44
  SPEAKER_02: There's a lot more years to go.
• 19:46
  SPEAKER_02: We're still building our some people would argue they wouldn't call you young, but what do you mean?
• 19:52
  SPEAKER_02: I'm a you know matured young person.
• 19:56
  SPEAKER_03: Okay.
• 20:02
  SPEAKER_01: I mean, look, I had a whole list of questions, but then you know, this is this is the beauty of having Pramu and Sunali when these two heads bang together, it's just it's a we it's a wealth of knowledge, guys.
• 20:16
  SPEAKER_01: You know, it's a it's a wealth of knowledge, and uh you guys basically answered all the questions I have, and now the only question I'm left with is uh is it better to buy brand new or buy established?
• 20:28
  SPEAKER_02: If you're a first-home buyer, if you buy brand new, you get free money.
• 20:34
  SPEAKER_02: Um free money in the sense you get government incentives.
• 20:39
  SPEAKER_02: Take use of it.
• 20:41
  SPEAKER_02: Right.
• 20:41
  SPEAKER_02: Uh that's my personal opinion.
• 20:43
  SPEAKER_02: That's what I would do.
• 20:45
  SPEAKER_02: Uh Sonali, what what what would you do?
• 20:48
  SPEAKER_03: I mean, I did make use of it, so I guess yeah, same.
• 20:54
  SPEAKER_03: Look, it it it's you you will never see me answer and say categorically yes to anything.
• 21:01
  SPEAKER_03: Um it does depend, but yeah, majority of the time if you can get um incentives, why not?
• 21:09
  SPEAKER_03: Um and then you can decide what to do with it later on from there on.
• 21:15
  SPEAKER_02: Yeah, so the way I look at it, guys, when I'm buying brand new, I'm only paying stamp duty for the land component.
• 21:25
  unknown: Right.
• 21:25
  SPEAKER_03: And if it's a first home buyer, you don't even pay a majority of the time.
• 21:28
  SPEAKER_02: Exactly.
• 21:29
  SPEAKER_02: So if you're a first home buyer, no stamp duty most of the time, right?
• 21:32
  SPEAKER_02: Unless you you buy a land that is above six hundred thousand, but hardly people do that.
• 21:36
  SPEAKER_03: In Victoria, yeah.
• 21:37
  SPEAKER_02: Yeah, right.
• 21:38
  SPEAKER_02: So so I look at it, pay uh the minimum possible amount you can, build the best property that you can put it to the market.
• 21:49
  SPEAKER_02: You stay there for you know, I don't know whether it could be in a year or it could be three years, stay there and then look at it as a con converting that property as an investment.
• 21:58
  SPEAKER_02: I look at it that way.
• 21:59
  SPEAKER_03: Yeah.
• 22:00
  SPEAKER_03: Too.
• 22:00
  SPEAKER_03: I think a lot of people, I think statistically speaking, people 50% of people move out of their first home within the first 10 years, apparently.
• 22:10
  SPEAKER_03: 50% you in Australia.
• 22:14
  SPEAKER_03: So while we go into it thinking it's going to be our forever home, it rarely is.
• 22:19
  SPEAKER_03: I think we moved out of our first home in the first two years.
• 22:23
  SPEAKER_03: One and a half years.
• 22:26
  SPEAKER_03: So it made financial sense for us to do it at that time.
• 22:30
  SPEAKER_03: So we did.
• 22:31
  SPEAKER_03: So that's why we say just remember it might not be your forever home.
• 22:38
  SPEAKER_03: Majority of the time it is not.
• 22:39
  SPEAKER_03: So that's why we say don't overcapitalize.
• 22:42
  SPEAKER_03: Make use of all the incentives you can.
• 22:45
  SPEAKER_03: Use it as an investment tool to get into maybe the next property might be your dream property, might be a forever home.
• 22:52
  SPEAKER_03: And sometimes for some people, it's about five, ten properties down the track.
• 22:56
  SPEAKER_03: So but all of it should be a stepping stone.
• 23:00
  SPEAKER_03: It should lead to growth.
• 23:02
  SPEAKER_03: It should, you know, get you to a higher place than where you started.
• 23:07
  SPEAKER_03: I think that's the that's the bottom line for me personally, right?
• 23:10
  SPEAKER_03: So you shouldn't be stepping back and taking, you know, one step forward, two steps back.
• 23:16
  SPEAKER_03: It should, you know, get you to a better place for yourself and your kids.
• 23:22
  SPEAKER_02: Basically, basically, folks, what Sonali's trying to explain to you guys is it's no point of going through all your all the hard work, building your first home or buying your first home, wait, waiting or doing paying the mortgage for the next two, three years time.
• 23:37
  SPEAKER_02: And you sell that and buy another property because you wanted to upgrade.
• 23:43
  SPEAKER_02: And that's all you can do.
• 23:45
  SPEAKER_02: Now you're stuck with one property.
• 23:47
  SPEAKER_02: So you are never there's no progress, right?
• 23:50
  SPEAKER_02: So what Sanali is saying is always have a progress.
• 23:53
  SPEAKER_02: Right?
• 23:54
  SPEAKER_02: So once you have that progress, that that has so much of other benefits.
• 23:58
  SPEAKER_02: Umali explained these kind of things early days, um, how how the how to structure your loans, how to how to structure your savings, right?
• 24:09
  SPEAKER_02: Look, and and again, um I I must say this to you.
• 24:15
  SPEAKER_02: Not every single strategy works for everybody.
• 24:18
  SPEAKER_02: These strategies need to be tailor-made.
• 24:22
  SPEAKER_02: Right?
• 24:22
  SPEAKER_02: It could be your your you could be in a high, high income uh threshold where you're paying a lot of taxes, so your strategy changes.
• 24:30
  SPEAKER_02: Uh you could be in a in a uh income threshold that your both husband and wife are you know uh somewhere between$180,000 to$250,000.
• 24:40
  SPEAKER_02: The strategies change.
• 24:41
  SPEAKER_02: You may have two, three kids or four kids.
• 24:44
  SPEAKER_02: Um you may have certain goals to send your children to private schools, right?
• 24:50
  SPEAKER_02: You you all you want to have live a very uh relaxed life, you want to travel the world, you want to see things as a family.
• 24:57
  SPEAKER_02: So so everybody uh pretty much everyone has a different kind of uh goals.
• 25:02
  SPEAKER_02: So the strategy changes with when those goals are being laid onto the table.
• 25:09
  SPEAKER_02: So it's not every single strategy works for everybody, right?
• 25:13
  SPEAKER_02: You have to please understand that my strategy, my sonali strategy that we did to for ourselves, we we we went to multiple uh uh properties before we turned 40, doesn't mean that that strategy works for you because our our our situations were different and the way our rich rich appetite were different, and and luckily Sonali was there to take the you know some of my um quick decisions uh were were not quick because of because of Sonali.
• 25:42
  SPEAKER_02: You know, she made sure that she she he always used to tell me, okay, you sleep on it and we'll talk about it tomorrow morning.
• 25:49
  SPEAKER_03: And uh there were quite a few where you didn't remember the next day.
• 25:52
  SPEAKER_02: Quite quite a few, quite a few, quite a few properties I I didn't buy uh because I forgot about it.
• 25:58
  SPEAKER_02: So something better came uh the next day.
• 26:02
  SPEAKER_02: So um it's luckily I I I I had a uh partner who who who was switched on, uh who explained certain things and who also kept me in the line that I uh where I should be.
• 26:16
  SPEAKER_03: Um sounding board, really, right?
• 26:19
  SPEAKER_03: And that's what we usually do for our clients as well, right?
• 26:22
  SPEAKER_03: Um you kind of had to sound it out and see what works, what doesn't work.
• 26:27
  SPEAKER_03: Yeah.
• 26:27
  SPEAKER_03: Does it work for a particular person or a couple?
• 26:30
  SPEAKER_02: So yeah.
• 26:31
  SPEAKER_03: Yeah.
• 26:32
  SPEAKER_02: I think I think I think that's that's a lot of lot of information for you guys.
• 26:35
  SPEAKER_02: Um I uh uh I I really hope we really hope that we shared uh uh this information to you guys to make that decision in a correct way, uh especially uh when the first home loan deposit scheme uh has changed or home guarantee scheme has changed.
• 26:51
  SPEAKER_02: I mean they're changing these things, their names also change.
• 26:55
  unknown: Yeah.
• 26:56
  SPEAKER_02: Maybe they might change it, they might put another name.
• 27:00
  SPEAKER_01: They keep confusing the market, you know.
• 27:03
  SPEAKER_02: Um, but take use of it.
• 27:05
  SPEAKER_02: This is this is a very good time.
• 27:07
  SPEAKER_02: Um we are more than happy to sit down with you, share our story, and and help you to to achieve your goals.
• 27:14
  SPEAKER_02: Um talk to talk to TFS and if myself and Sonali is available, we will always always will be there to help you to achieve your goals.
• 27:23
  SPEAKER_02: Sonali.
• 27:24
  SPEAKER_02: Yeah, for sure.
• 27:25
  SPEAKER_02: Yeah, yeah, yeah.
• 27:27
  SPEAKER_01: Well, there you go, guys.
• 27:28
  SPEAKER_01: See, I mean, as as you guys would have heard, didn't even get an opportunity to ask questions because when these two heads bank together, the knowledge just keeps coming and it's experience they speak from.
• 27:39
  SPEAKER_01: So if you guys are looking for a mortgage broker, look, come to TFS because you come to TFS, you get promo and Sunali.
• 27:48
  SPEAKER_01: So, with that being said, thank you guys for joining in to uh tuning into today's episode, and we'll catch you guys on the next TFS Weltcast episode.
• 27:56
  SPEAKER_03: Thank you all.
• 27:57
  SPEAKER_03: Thanks guys.
• 27:59
  SPEAKER_00: Thank you for tuning in to another episode of the TFS Podcast, where we turn knowledge into action and big goals into real results.
• 28:09
  SPEAKER_00: Now, don't forget to like and subscribe and share this episode with someone working towards their next financial step.
• 28:18
  SPEAKER_00: Now, with that being said, until next time, keep building.