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FRIDAY DRINKS: Easy Breezy Rent Freezie · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud your
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Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
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Speaker 1: we get started on She's on the Money podcast, I
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Speaker 1: would like to acknowledge the traditional custodians of the land
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Speaker 1: of which this podcast is recorded on a wondery country,
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Speaker 1: acknowledging the elders, the ancestors and the next generation coming through.
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Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
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Speaker 1: and lasting impact for tomorrow.
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Speaker 2: Let's get into it.
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Speaker 3: She's on the Money. She's on the Money.
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Speaker 4: Hello, and welcome to She's on the Money, the podcast
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Speaker 4: for millennials who want financial freedom, My friends, Today is Friday,
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Speaker 4: which means it is time to sit back with the
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Speaker 4: girls with a bev in hand, to unpack our favorite
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Speaker 4: moments of the week and of course, to celebrate our
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Speaker 4: incredible She's on the Money community. As always, we'll be
1:16
Speaker 4: sharing our favorite money wins. We're going to discuss what's
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Speaker 4: making news in the finance world, and today we are
1:21
Speaker 4: going to be answering a juicy money question, which this
1:23
Speaker 4: week is all about investment diversification.
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Speaker 5: But first it is.
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Speaker 4: Time to recap the week that was. Miss jesse Garichi,
1:30
Speaker 4: could you talk us through what happened on our Monday
1:33
Speaker 4: Money Diary.
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Speaker 6: Absolutely, Monday's diarist was ever so lovely. She watched her
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Speaker 6: family go through bankruptcy when they were little and they
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Speaker 6: lost pretty much everything, which, as we've spoken about on
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Speaker 6: the podcast before, is definitely considered a form of financial
1:47
Speaker 6: trauma and something that really shapes your money story. And
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Speaker 6: she spoke to us a little bit about what the
1:52
Speaker 6: impacts of that were on her as an adult, how
1:54
Speaker 6: it has kind of changed her perspective and you know
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Speaker 6: what she's thinking about because now she's in the position
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Speaker 6: her and her fiance are building their first home together,
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Speaker 6: which is so exciting. And she spoke a little bit
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Speaker 6: about the impacts of that mindset really had on her
2:08
Speaker 6: and the goals that she has and how it can
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Speaker 6: sometimes be a little bit of a barrier, which I
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Speaker 6: think is super relatable for a lot of people and
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Speaker 6: a really good example of how even those things that
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Speaker 6: we experience in childhood. She personally didn't go bankrupt, her
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Speaker 6: parents did, but that it really impacted her a thousand percent.
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Speaker 6: It really carried into her adulthood and she was just
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Speaker 6: very self aware, and I thought that was super admirable
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Speaker 6: and showed that she had been working really hard on
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Speaker 6: her financial literacy and her self awareness.
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Speaker 2: Agreed.
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Speaker 4: I felt like it was a really powerful story as well,
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Speaker 4: because trauma isn't only just for the person who quote
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Speaker 4: experienced it. It can be really peripheral as well. Yeah,
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Speaker 4: and sometimes we don't even notice that it's impacting us
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Speaker 4: until we get a little bit older and you start
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Speaker 4: making decisions and you're like, why am I so much
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Speaker 4: like my mom? And you're like, oh, oh, okay, that
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Speaker 4: makes a lot of sense. That's how they grew up,
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Speaker 4: that's their values, that's their beliefs, And I think it's
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Speaker 4: just really interesting.
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Speaker 5: We're also discussing fun trauma in a couple of weeks
3:01
Speaker 5: time on The Deep Dive Ladies, so stay tuned for
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Speaker 5: that one as well. I'm really excited.
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Speaker 2: Fut so very fun.
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Speaker 4: Georgia King, I hear your voice on their show Talk
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Speaker 4: to Us What happened on Wednesday?
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Speaker 5: On Wednesday, I sat on the bench. I was not
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Speaker 5: a part of Wednesday's show. The Gorgeous Kate I got
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Speaker 5: you toed.
3:17
Speaker 2: Out, got you to.
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Speaker 5: Kate Brandsgrove joined us on the show to talk all
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Speaker 5: about interest rates and what they mean from a home
3:23
Speaker 5: buying perspective and are interesting topic. But how did she
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Speaker 5: get to kick you off your podcast? George? Well, she's
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Speaker 5: a special woman and I a little it happened. I
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Speaker 5: allowed it.
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Speaker 2: Do they answer the degredation? Yeah?
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Speaker 4: Good, good, no problems at all. I am glad well
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Speaker 4: with that recap to my friends? Do you know what
3:40
Speaker 4: time it is? You guys know what time it is?
3:42
Speaker 4: Is time for our budget direct money Wins of the
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Speaker 4: week Georgia King, what are you bringing to the table?
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Speaker 5: Alrighty, let's hop into it. The first win of the
3:49
Speaker 5: week comes from Amy Money Win. My sister and I
3:51
Speaker 5: work at a golf club along the Peninsula and we
3:54
Speaker 5: both work out at the front reception desk and accommodation together.
3:57
Speaker 5: We had some guests stay with us for a couple
3:59
Speaker 5: of days and they loved us so much that we
4:01
Speaker 5: received a five hundred dollar tip between the two of
4:04
Speaker 5: us wo plus we also got fifty dollars on top
4:06
Speaker 5: of that each from another one of their friends. Both
4:09
Speaker 5: paid pretty averagely, so it really made our weeks. How
4:12
Speaker 5: good's that? Bucks money job.
4:16
Speaker 4: When it starts to go into three figures, you're like,
4:17
Speaker 4: that's a real money The.
4:19
Speaker 5: Next week it comes from Jessica money Whin. I got
4:22
Speaker 5: a secondhand couch on Marketplace in my rental and I
4:25
Speaker 5: had my sister's boyfriend and my cousin carry it up
4:28
Speaker 5: the stairs for me. So I saved on the couch
4:30
Speaker 5: and the removalists.
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Speaker 2: I like that money and logistics win.
4:35
Speaker 5: Removalists are expensive ladies. Psay. I learned that yesterday.
4:39
Speaker 6: Oh really feel the moving process was very stressful. Moving
4:44
Speaker 6: on the next week, it comes from Brittany money Win.
4:47
Speaker 6: I got an almost brand new Mercedes kids driveable car
4:51
Speaker 6: from my estates by swap sell Facebook.
4:52
Speaker 5: Group for free money win. These usually go for about
4:56
Speaker 5: four hundred dollars. It was listed as not working and
4:58
Speaker 5: missing a charger.
5:00
Speaker 2: That's a right, I'll get a charger. I'm saving four Hungie.
5:02
Speaker 5: My amazing electrician husband fixed it for our daughter, who's
5:06
Speaker 5: four years old, and we had a spare twelve volt
5:08
Speaker 5: charger laying around. Oh yeah, of course, piece of cake.
5:11
Speaker 5: Turns out our daughter is absolutely terrified of the car
5:13
Speaker 5: and we'll be putting it in storage until our seven
5:15
Speaker 5: month old son is able to use it.
5:19
Speaker 2: Okay, so yes.
5:21
Speaker 4: One of my girlfriends gave her daughter like a mini
5:24
Speaker 4: range drover for her birthday. It was the boogiest thing
5:27
Speaker 4: I've seen in my life. We go to this first
5:28
Speaker 4: birthday and this little kid is being gifted this rain drover.
5:32
Speaker 4: I mean, it sounds real boogie, but it's obviously like
5:34
Speaker 4: actually a fun present.
5:35
Speaker 2: Her daughter was terrified of it as well. She's like,
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Speaker 2: that was expensive and I thought she'd.
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Speaker 4: Love it, and I was like, okay, so yeah, it'll
5:42
Speaker 4: probably come back at her second birthday because kids.
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Speaker 2: Don't know, they don't know money win.
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Speaker 7: Later though exactly next win is a loss actually, and
5:51
Speaker 7: it comes from is a loss, money loss. I traveled
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Speaker 7: to Woomba for a work meeting and I paid six
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Speaker 7: dollars seventy for a regular lactose free latte at the
6:01
Speaker 7: service station.
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Speaker 4: By the service station, Oh you can pay that angle
6:04
Speaker 4: and I respec that's still good.
6:06
Speaker 5: But she said the coffee was good.
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Speaker 2: Oh it was good. Servo, coffee is good?
6:11
Speaker 5: Is it?
6:11
Speaker 2: Can't say the same?
6:12
Speaker 5: Actually, is it true on a money related front? Because
6:15
Speaker 5: we are on shees on the money. That coffee's at
6:19
Speaker 5: seven eleven. Yeah, they're going up the first time.
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Speaker 4: I actually laughed so hard and heard on the grape
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Speaker 4: vine that they pushed that launch off because of the
6:29
Speaker 4: circus around my coffee.
6:31
Speaker 2: Yeah, coffee gate, so they pushed that off.
6:33
Speaker 4: But they are going up, which, to be honest, still
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Speaker 4: a total coffee guys, that's still very good value. The
6:39
Speaker 4: thing that Jess is going to be real salty about though,
6:42
Speaker 4: Jess doesn't drink coffee, so I don't know if you
6:44
Speaker 4: read the pr or the media release from them. Can
6:47
Speaker 4: I have to break it to her now then live
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Speaker 4: on the show, Jess. They're also doubling the price of
6:51
Speaker 4: slur piece.
6:52
Speaker 6: No, oh my god, I'm I was literally like two
6:57
Speaker 6: dollars for coffee still really chat but two dollars for
6:59
Speaker 6: a slow absolutely not?
7:02
Speaker 2: Are you real salty? We like the guys at seven eleven.
7:05
Speaker 4: They're I mean, they're not actually our friends, but we
7:07
Speaker 4: think that they're our friends.
7:09
Speaker 5: The next weein comes from Emma, guys, money win. I've
7:11
Speaker 5: just turned my first apartment into an investment property and
7:15
Speaker 5: a tenant is moving in on Friday.
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Speaker 2: Money when that's exciting? So how exciting would that be?
7:20
Speaker 2: Oh my gosh?
7:21
Speaker 5: So many Yeah.
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Speaker 4: But just like so many of our community work their
7:24
Speaker 4: buds off to get into their first homes and like
7:27
Speaker 4: that's obviously a massive milestone in itself. However, imagine buying
7:31
Speaker 4: house and then getting your first ten and you're like,
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Speaker 4: this is now making money?
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Speaker 5: Like that's sick killing it. Well done, Emma. Last win
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Speaker 5: of the Week, Ladies comes from Callista. Since listening, Okay,
7:41
Speaker 5: it's quite self indulgent. Sorry, I chose it because it's
7:43
Speaker 5: pretty complimentary to us. Since listening to She's on the Money.
7:47
Speaker 5: I've closed all of my buy now, pay later accounts,
7:50
Speaker 5: been contributing extra super and tax through work. I've sorted
7:53
Speaker 5: out automated transfer to savings accounts to stop me spending
7:56
Speaker 5: all of my money. I've been investing regularly in ETFs,
7:59
Speaker 5: and I just got a new job that pays me more. What, Queen,
8:03
Speaker 5: I'm just doing it all as queen behavior. I love
8:06
Speaker 5: being part of this community that teaches me so much
8:08
Speaker 5: and keeps me on track.
8:09
Speaker 4: We love having but also like we're just putting the
8:12
Speaker 4: information out there. Look at all that work she did,
8:15
Speaker 4: We didn't do that.
8:16
Speaker 2: Like we just talked absolute smack on this podcast and
8:19
Speaker 2: then take credit for stuff like that it's great. It
8:22
Speaker 2: is great, Georgia King. It has been obviously fantastic celebrating
8:26
Speaker 2: some of your budget Direct money wins budget Director, winner
8:28
Speaker 2: of can Star's Insurer of the Year Award twenty twenty two.
8:32
Speaker 2: Budget Direct Insurance solved with.
8:34
Speaker 4: That, let's go to a really quick break and after
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Speaker 4: the break, we're going to talk about diversification in your
8:39
Speaker 4: share portfolio. And we have a topic that we want
8:42
Speaker 4: to talk about. The jess is found in the media.
8:43
Speaker 4: Don't go anywhere.
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Speaker 6: Alrighty guys, this week I wanted to talk about something
8:53
Speaker 6: it's not facked yet. Just let me be very clear,
8:56
Speaker 6: because sometimes when we talk about these things, people get confused.
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Speaker 6: A proposal that came out from the Greens and they've
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Speaker 6: proposed four years. I know, this is really interesting. They've
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Speaker 6: proposed a rent freeze that would last for two years
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Speaker 6: to address the cost of the crisis, the rental crisis.
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Speaker 6: Anyone who's renting, George, I mean, you literally just moved
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Speaker 6: because your rent went up, right, yes?
9:16
Speaker 5: Or is that why you moved?
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Speaker 2: You were like salty? Absolutely not yet amongst men. Okay,
9:21
Speaker 2: all right, al right, we'll take this off lineage. We'll
9:23
Speaker 2: take it to a wine.
9:24
Speaker 6: But yeah, a lot of people are experiencing increasing rand,
9:27
Speaker 6: which obviously in many instances is a case of increasing
9:30
Speaker 6: interest rates, which then the landlord's passing along.
9:32
Speaker 2: Yeah.
9:32
Speaker 6: Yeah, it's a whole, big, long thing, but it's just
9:34
Speaker 6: another add on to the already extremely long list of
9:39
Speaker 6: expensive costs that we have to pay just for being
9:41
Speaker 6: a wife, which kind of sucks. So the Greens have
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Speaker 6: proposed a two year rent freeze, which would mean that
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Speaker 6: Australia would be frozen from the weekly amount agreed upon
9:50
Speaker 6: or advertised at the beginning date of the proposed bill,
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Speaker 6: which at this time is the first of August twenty
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Speaker 6: twenty two, which would mean that for two years from
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Speaker 6: the first of August twenty twenty two, which would obviously
10:00
Speaker 6: be backdated, that rent would be frozen where it is.
10:02
Speaker 6: So if right now you pay three hundred dollars a week,
10:05
Speaker 6: for the next two years, your rent would stay at
10:06
Speaker 6: three hundred dollars a week, which sounds really nice, particularly
10:08
Speaker 6: when everything's going up. According to some research that was
10:12
Speaker 6: actually done by SQM, weekly rent has risen by fourteen
10:15
Speaker 6: point one percent in Australia in the past yeah, which
10:18
Speaker 6: is that's a lot like, and I know that we've
10:20
Speaker 6: been talking about how expensive everything feels, but like to
10:23
Speaker 6: hear fourteen point one percent, I mean, correct me if
10:25
Speaker 6: I'm wrong, but that seems like heaps for twelve months.
10:28
Speaker 6: And so that's kind of why they've proposed this. The
10:31
Speaker 6: Greens would need backing from other political parties to make
10:33
Speaker 6: this happen because obviously they are not the party in
10:36
Speaker 6: parliament currently. I don't know if that's the right word
10:39
Speaker 6: or the right phrase, but you know they're not going
10:40
Speaker 6: to pay out, they know any mean baby, They said,
10:42
Speaker 6: we think this is a great idea. It remains to
10:44
Speaker 6: be seen if everybody else jumps on board. But I
10:46
Speaker 6: wanted to chat to the girlies and say, what do
10:49
Speaker 6: we think? It seems like a grade under your own face, Valley,
10:52
Speaker 6: But I always find with politics that there's usually a
10:54
Speaker 6: downside or a surer something like that.
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Speaker 2: Which makes them look real good. Though.
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Speaker 6: Well yeah, and I mean, they have the largest number
11:01
Speaker 6: of seats that they've ever had, which is really cool
11:03
Speaker 6: because I think for a lot of us and please,
11:06
Speaker 6: I'm not getting I mean, I'm talking about it.
11:08
Speaker 2: We're totally getting political. You're talking about the Greens, and
11:10
Speaker 2: that's Okay.
11:11
Speaker 6: I'm not trying to sway people in any way.
11:12
Speaker 4: But no, we have respectful conversations about potential policies and
11:16
Speaker 4: how that might impact our community, Jessica, and you are
11:18
Speaker 4: well within your arts to have an opinion on that
11:20
Speaker 4: because whoever had done it, whether it was the Greens
11:23
Speaker 4: or Liberal or labor, Like, it's just a policy that
11:25
Speaker 4: we're discussing.
11:26
Speaker 2: This isn't a jess votes for the Greens.
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Speaker 6: Yeah, But like, I think it's really cool because the Greens,
11:31
Speaker 6: I think, aligne with a lot of people within our
11:33
Speaker 6: age group. They seem to care about a lot of
11:35
Speaker 6: things that a lot of us do care about, And
11:37
Speaker 6: I just thought it was really interesting to kind of
11:39
Speaker 6: talk about the fact that this kind of left of
11:42
Speaker 6: side party is coming in and proposing changes that seem
11:45
Speaker 6: like they would really resonate for a lot of people.
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Speaker 4: I feel like there are a few people in our
11:49
Speaker 4: community who am like, oh, yeah, that's great. Like, you know, George,
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Speaker 4: if that existed for you, you wouldn't have been mucked
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Speaker 4: over with such a large increase in rent And I
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Speaker 4: feel like it's actually really like one of the draw
12:00
Speaker 4: at the end of the day of renting is reliability.
12:03
Speaker 4: It is knowing that each and every single month you
12:05
Speaker 4: only have to pay that set amount of rent. And
12:07
Speaker 4: if your hot water system breaks, all like meat, your
12:10
Speaker 4: air conditioner system breaks and it's going to cost you.
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Speaker 4: It literally is going to cost me fifteen thousand dollars
12:14
Speaker 4: to put a new reverse cycle into our house. Like,
12:17
Speaker 4: that's not your problem. That ain't your circus said, it
12:19
Speaker 4: is not your monkeys.
12:20
Speaker 2: That is somebody else's house.
12:22
Speaker 4: Gee, you would just pick up the phone, call your
12:23
Speaker 4: agent and say, hey, the aircon doesn't work. Can you
12:26
Speaker 4: just organize someone to come and look at it? Like
12:28
Speaker 4: that is one of the complete benefits of renting, that
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Speaker 4: it's consistent, right, But for them to increase rent, buy
12:36
Speaker 4: a massive amount, and if you're saying it's gone up
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Speaker 4: fourteen percent, let's remember how those statistics are calculated, that
12:41
Speaker 4: would be an average across the board. I know people
12:44
Speaker 4: like you know my sister she signed a new lease
12:46
Speaker 4: at the start of COVID, got a really sweet deal
12:49
Speaker 4: and a really sick house, and I'm like, wow, that's
12:51
Speaker 4: really nice.
12:51
Speaker 2: When I was all right, I couldn't afford that. Who knows.
12:54
Speaker 4: I haven't spoken to her about rent recently. I'm assuming
12:56
Speaker 4: that her owners might be going, oh, like, maybe we
12:59
Speaker 4: should put it back up to what it used to be.
13:01
Speaker 4: And I'm assuming, George, that's maybe what happened to you
13:04
Speaker 4: where they've gone all right. Well, you know COVID's quote
13:07
Speaker 4: over we want actual rental yield for this, which from
13:10
Speaker 4: an investor perspective makes a lot of sense, right, Like,
13:13
Speaker 4: if you purchase an investment property with the intention of
13:16
Speaker 4: creating a rental yield to put you in a wealthy
13:20
Speaker 4: position when you are older, like, that's your progreative. You
13:22
Speaker 4: can charge whatever rent you want. But I think that
13:25
Speaker 4: puts people in a compromise position. So to say we're
13:27
Speaker 4: going to cap it at two percent annually, you're all right,
13:30
Speaker 4: Like that seems kind of reasonable. I'd be interested to
13:34
Speaker 4: know the semantics of that, Like, am I only allowed
13:37
Speaker 4: to increase Jessica Ricky's rent by two percent each year?
13:40
Speaker 4: Or if I tell her I'm not renewing her lease,
13:43
Speaker 4: can I then increase it by fifteen percent.
13:45
Speaker 2: To a new tenant.
13:47
Speaker 4: Will that increase turnover and therefore decrease availability of rentals?
13:52
Speaker 2: That's a really good point.
13:52
Speaker 6: I hadn't thought about the fact that if the rule became.
13:55
Speaker 6: Let's say you can't increase the rent on your tenant
13:58
Speaker 6: for two years while they're living. There is the workaround,
14:01
Speaker 6: but if you put a new tenant in, you can
14:03
Speaker 6: change the productya is it?
14:04
Speaker 4: Like it hasn't making someone redundant and then you can't
14:08
Speaker 4: hire someone else for like three months after into the
14:11
Speaker 4: same role. Like, I don't know how that works. But
14:14
Speaker 4: I was looking online at this obviously in preparation for
14:17
Speaker 4: this episode, and there's a group called the Property Investment
14:20
Speaker 4: Professionals of Australia and they're saying that the Queensland Greens
14:24
Speaker 4: Party's implementation or proposed implementation of a two year rent
14:28
Speaker 4: freeze is likely to push investors out of the market
14:30
Speaker 4: because if I can only increase your rent by two percent,
14:33
Speaker 4: that's not a good yield if you compare it to
14:35
Speaker 4: the share market, right, But it will increase homelessness. And
14:39
Speaker 4: I think that that's an interesting take because if there
14:42
Speaker 4: are less investors investors equal rental properties available for people
14:47
Speaker 4: to rent, then obviously there's going to be less people
14:50
Speaker 4: able to get into properties, less availability, and I think
14:54
Speaker 4: that creates an even bigger housing crisis above and beyond affordability.
14:59
Speaker 2: So it's an interest conundrum.
15:01
Speaker 4: I can see where the Greens are coming from when
15:03
Speaker 4: they say, oh, we would like to implement this, because
15:05
Speaker 4: obviously an emergency rent freeze is going to give time
15:08
Speaker 4: for wages to increase to CPI, because obviously inflation has
15:12
Speaker 4: been absolutely crazy recently, and with inflation, like just if
15:17
Speaker 4: your costs increased and you owned a rental property, you'd
15:20
Speaker 4: be like, oh, I can soak some of that up
15:22
Speaker 4: by increasing my rent, but your rent's income has an increased.
15:25
Speaker 4: So I can see why they would do it, but
15:27
Speaker 4: I also see the flip side of going, hmm, that's
15:29
Speaker 4: actually maybe not the best idea.
15:31
Speaker 1: Yeah.
15:31
Speaker 6: Well, the opposition was asked if they would support the
15:33
Speaker 6: red freeze, and shadow Mister for Housing and Homelessness Michael
15:36
Speaker 6: Sucker said no, and that I would argue is why
15:39
Speaker 6: as someone like I'll be the first to admit that
15:41
Speaker 6: I am definitely not as aware or as educated or
15:45
Speaker 6: as involved in politics as I guess I would like
15:48
Speaker 6: to be. And so it's really interesting when stuff like
15:51
Speaker 6: this comes out because like I looked at that headline
15:53
Speaker 6: and I was like, oh my god, that sounds amazing,
15:55
Speaker 6: Like rent freeze. Everything's expensive, Like I'm worried that my
15:58
Speaker 6: rent's gonna go up, like when our least renuely you
16:01
Speaker 6: just never know, and everything else is already costing so
16:03
Speaker 6: much money, like it's a real stress. And I was like, oh,
16:05
Speaker 6: I got amazing, what a great policy, and my brain
16:07
Speaker 6: kind of stopped there. And that's why I wanted to
16:09
Speaker 6: talk about this, because I think that.
16:11
Speaker 2: Lots of people would be thinking the exact same thing
16:13
Speaker 2: you did.
16:14
Speaker 6: And it's kind of interesting, how, yeah, like on the surface,
16:17
Speaker 6: that is such a great choice, but the economic fallout
16:20
Speaker 6: or the butterfly effect, I guess that these choices have
16:23
Speaker 6: can go so much broader, And so by talking about it,
16:25
Speaker 6: I hope that maybe we showed another side of the coin.
16:28
Speaker 4: I've been reading online and there are a fair few
16:30
Speaker 4: different property commentators who have actually said, look, this snap
16:34
Speaker 4: rent freeze is doing nothing for long term housing supply issues.
16:38
Speaker 4: In fact, it's making it worse, because why would you
16:40
Speaker 4: potentially purchase an investment property that you're going to rent
16:43
Speaker 4: out if it's like not got good yield or ability
16:46
Speaker 4: to grow over time, Because that's one of the draw
16:48
Speaker 4: cards for an investor, right and that rent increases are
16:51
Speaker 4: actually below inflation and then I took it one step
16:53
Speaker 4: further and looked at some research that was done by Picker,
16:56
Speaker 4: who is that property group that I mentioned before, and
16:58
Speaker 4: that showed that rents had grown at only half the
17:01
Speaker 4: rate of inflation over a decade nationally. So that's actually
17:04
Speaker 4: not that bad in the grand scheme of things, if
17:07
Speaker 4: you look at the big picture, and we always say
17:09
Speaker 4: on the pod like if in doubt, zoom out and
17:11
Speaker 4: look at the bigger picture, because right now post COVID,
17:13
Speaker 4: you're like, yep, that rend freeze will be you know,
17:15
Speaker 4: so good for so many people. But if we look
17:17
Speaker 4: at the bigger picture, it's actually quite detrimental.
17:20
Speaker 5: It will be interesting to see what happens as well, ladies,
17:23
Speaker 5: because we have seen over recent times that the volume
17:26
Speaker 5: of investors in the market has decreased because of COVID
17:28
Speaker 5: and because of lending restrictions and legislative changes.
17:31
Speaker 2: Yeah, there's so many different reasons.
17:33
Speaker 5: So if this does come into effect, it will be
17:35
Speaker 5: interesting to see if that decreases further.
17:37
Speaker 4: Yeah, and I know that lots of people, yes you included,
17:40
Speaker 4: well like this is sick.
17:41
Speaker 2: And then I put my finance hat on.
17:42
Speaker 4: I'm like, oh, I don't know about these This actually
17:45
Speaker 4: feels like it's probably detrimental. And you know, there are
17:48
Speaker 4: lots of people in our community that have varying and
17:51
Speaker 4: very diverse views on landlords and whether you should own
17:54
Speaker 4: property or not or what that looks like. But at
17:56
Speaker 4: the end of the day, there is a housing crisis,
17:58
Speaker 4: and one of the ways to actually, you know, help
18:01
Speaker 4: improve that is to have more properties available for rented
18:04
Speaker 4: reasonable prices. And I think there's probably a few things
18:06
Speaker 4: that you could do that isn't a rent freeze that
18:09
Speaker 4: puts us in a better position long term. So it'd
18:11
Speaker 4: be interesting. I don't have the answers. I just am
18:13
Speaker 4: a spectator to this with an opinion. I'd like to
18:16
Speaker 4: see what other people have to say.
18:17
Speaker 5: Oh with all of that said, ladies, Money dilemma time.
18:20
Speaker 2: Oh what a dream, Let's go.
18:24
Speaker 5: Hi there. Have you got a money dilemma you just
18:27
Speaker 5: can't solve that She's on The Money Team is here
18:29
Speaker 5: to help. Every week we tackle your dilemmas, both big
18:32
Speaker 5: and small, to answer your most burning money, career and
18:35
Speaker 5: life questions. To get involved, simply head to our website
18:38
Speaker 5: and leave us a quick voice recording, and you may
18:40
Speaker 5: just find yourself on the show. Now, let's take a
18:43
Speaker 5: listen to today's money Dilemma.
18:46
Speaker 8: Hi, lovely ladies, thanks so much for the great podcast.
18:49
Speaker 8: I'm really loving all of the investing related content, and
18:52
Speaker 8: I have an investment related question. I currently invest in
18:56
Speaker 8: a small number of index based ETFs, and I'm looking
19:00
Speaker 8: to branch out and acquire a handful of individual stocks.
19:04
Speaker 8: I've read that you shouldn't buy companies that are holdings
19:07
Speaker 8: within your ETFs so that you're not doubling up in
19:09
Speaker 8: your portfolio. But I was wondering, if you consider that
19:14
Speaker 8: the share price of a company represents great value, you
19:17
Speaker 8: like what the company does, and you want to acquire
19:20
Speaker 8: them as an individual stock, is it a mistake if
19:22
Speaker 8: they're a holding in one of your ETFs.
19:25
Speaker 5: Thanks ladies, Victoria Devine, Georgia Kie. I don't know how
19:31
Speaker 5: to answer this question, but you know what I can
19:32
Speaker 5: add to this conversation.
19:34
Speaker 2: Oh, I thought you were going to say, you know
19:35
Speaker 2: what I can do, handball it to you.
19:37
Speaker 5: I can do that, and I will do that. But
19:38
Speaker 5: I just loved this Money Dilemmasts question that I loved
19:41
Speaker 5: her energy. I loved her aura.
19:43
Speaker 2: You loved her aura.
19:44
Speaker 5: Yeah, that's all I can really add to this. I
19:46
Speaker 5: like to this conversation, but I'm really curious to hear
19:50
Speaker 5: what you have to say.
19:50
Speaker 4: VICKI d do you have any comments that you would
19:53
Speaker 4: like to make Jess, I don't know.
19:54
Speaker 6: The answer, but I suppose maybe to simplify it because
19:57
Speaker 6: there was not jargon, but for our newer investors or
20:00
Speaker 6: people who are not so confident. Essentially, what she's asking is,
20:03
Speaker 6: if she has an ETF, which as we know, it's
20:05
Speaker 6: a bundle or a basket of different shares, can you
20:07
Speaker 6: make me so proud? Thank you. I'm just I'm literally
20:10
Speaker 6: just repeating what you taught me. But if she has
20:12
Speaker 6: an ETF, let's say within that ETF, I have invested
20:14
Speaker 6: in Cheese on the Money.
20:15
Speaker 2: Great, a genius idea. I mean, it's not on the
20:17
Speaker 2: stock market, probably never going to be in the stock market,
20:20
Speaker 2: but I'd invest in that company.
20:21
Speaker 8: Yeah.
20:21
Speaker 6: But if my ETF that has all companies owned by women.
20:25
Speaker 6: For example, one of the shares that in there is
20:26
Speaker 6: Shees on the Money, should I, And I'm like, I
20:28
Speaker 6: really like Es on the Money. I want to invest
20:30
Speaker 6: in them more. Should I then go directly and invest
20:33
Speaker 6: in Cheese on the Money. Shares outside of that ETF
20:36
Speaker 6: or not. She's asking is that redundant or is it okay?
20:39
Speaker 6: Because I love the company and its values and its ethics,
20:41
Speaker 6: et cetera.
20:42
Speaker 2: That's a very good way of phrasing it.
20:43
Speaker 4: To be honest, I think this is a bigger picture, right,
20:46
Speaker 4: So investing in an ETF is often done so. An
20:50
Speaker 4: ETF is an exchange traded fund. As you said before, Jess,
20:52
Speaker 4: it's basically a basket of shares that is managed by
20:55
Speaker 4: a fund manager who's in charge of bringing shares in
20:59
Speaker 4: and putting shares out and you know, making all the
21:01
Speaker 4: big investment decisions. Most ETFs on the market are what's
21:05
Speaker 4: called an index, and that means it it just has
21:08
Speaker 4: a whole bundle of different shares in it. It might have
21:10
Speaker 4: the top two hundred shares in Australia in it, and
21:14
Speaker 4: it then takes the average returns and gives those to you.
21:17
Speaker 4: So it's not really looking for, you know, above and
21:19
Speaker 4: beyond benchmark performance. It just kind of is the average
21:22
Speaker 4: of the average. And most people view an ETF as
21:25
Speaker 4: a relatively safe bet. They look at it and go,
21:28
Speaker 4: you know what, I don't know heaps about the investment
21:30
Speaker 4: markets I am not a financial advisor, but what I
21:32
Speaker 4: have done is founder basket that has the values and
21:35
Speaker 4: the goals and the ethics that I am happy to
21:38
Speaker 4: adhere to, and a pretty good manager that.
21:40
Speaker 2: Makes those decisions. What she's talking about is going to
21:43
Speaker 2: the next step.
21:44
Speaker 4: And if you guys want to know more about that,
21:46
Speaker 4: we did a really good bias but really good episode
21:50
Speaker 4: on the different ways to invest. We talked about micro
21:54
Speaker 4: investing and then share trading platforms and robo advice or
21:57
Speaker 4: what it means to get full service financial advice and
22:00
Speaker 4: how those different things work. But there's a lot more
22:02
Speaker 4: risk when you're picking the shares yourself because there's a lot.
22:06
Speaker 2: More responsibility on you.
22:07
Speaker 4: It's not about like, oh, v I went and bought
22:09
Speaker 4: an A and Z share today and I go, oh congrats.
22:12
Speaker 4: You actually hold it in exactly the same way as
22:15
Speaker 4: you would in ETF, however, and ETF is going to
22:18
Speaker 4: give you automatic diversification because there's a manager that's in
22:21
Speaker 4: charge of making sure that if it's the top two
22:24
Speaker 4: hundred stocks, it always has those top two hundred in it,
22:26
Speaker 4: and they might come and they might go. But if
22:28
Speaker 4: you just go and buy an Z and then that goes,
22:31
Speaker 4: you know, down, for any reason, you're going to feel
22:34
Speaker 4: the full breadth of that drop. So if you are
22:37
Speaker 4: an individual share investor, your job is to not just
22:40
Speaker 4: pick one A and Z share, but maybe pick a
22:43
Speaker 4: basket of eight to ten or even twelve different shares
22:46
Speaker 4: to diversify yourself. And to me, that's a really big
22:49
Speaker 4: responsibility because how do you know what to buy and
22:52
Speaker 4: what to sell and what's actually doing well without significant research.
22:56
Speaker 4: It's not to say you shouldn't do it. I just
22:58
Speaker 4: think it's a big responsibility. I love because it's literally
23:01
Speaker 4: my career and my job, and I adore it and
23:03
Speaker 4: I do it for myself. However, I think we need
23:06
Speaker 4: to be really careful we're making that decision because the
23:08
Speaker 4: diversification isn't automatic click, it isn't an ETF. However, I
23:13
Speaker 4: think what she's saying is should we double up, Like, yeah,
23:16
Speaker 4: I own A and Z inside my ETF? Should I
23:19
Speaker 4: go on buy it direct? And to be honest, I've
23:21
Speaker 4: got clients that do do that. They own an ETF
23:24
Speaker 4: that you know. I'm using A and Z as an
23:26
Speaker 4: example because I was doing some research on them this
23:28
Speaker 4: morning and so they're stuck in my head. It has
23:29
Speaker 4: nothing to do with the recommendation to Steph Wyer. Sorry
23:32
Speaker 4: for that spoiler, but A and Z is in your ETF,
23:36
Speaker 4: but it's the top two hundred shares, so it makes
23:39
Speaker 4: up one two hundredth of your portfolio. So to me,
23:42
Speaker 4: I go, oh, well, I wouldn't really mind about the
23:44
Speaker 4: double up because you're not significantly invested in in.
23:48
Speaker 2: Your ETF at all.
23:49
Speaker 5: However, I would.
23:51
Speaker 4: Really lean to, well, why are you then purchasing it
23:54
Speaker 4: as an individual share instead of buying more of that ETF?
23:58
Speaker 2: Like, what is your goal?
23:59
Speaker 4: If you're goal is to diversify more, maybe you've gone
24:03
Speaker 4: or I've bought this ETF and it is all Australian shares.
24:06
Speaker 4: Let's go back to that example of the top two
24:08
Speaker 4: hundred companies in Australia. When it comes to diversification, adding
24:12
Speaker 4: an individual share isn't really going to diversify you, but
24:15
Speaker 4: adding another ETF that actually holds global companies would. So
24:19
Speaker 4: you go, well, what is your goal here? Is it
24:21
Speaker 4: just because you love that share? In which case you
24:24
Speaker 4: do you boot go buy some more of that If
24:26
Speaker 4: that's what sets your soul on fire, I'm not going
24:28
Speaker 4: to argue with you but we really need to go
24:30
Speaker 4: back to the crux of well, what are your goals
24:33
Speaker 4: and importantly, what is your risk profile? If you're a
24:36
Speaker 4: conservative investor, maybe an investment that is an index ETF
24:40
Speaker 4: that tracks the average of the top two hundred companies
24:42
Speaker 4: in Australia is aokay, and you're like, yep, no problems.
24:45
Speaker 4: Maybe direct investing is actually too risky and it's not
24:47
Speaker 4: actually aligned to.
24:49
Speaker 2: Your risk profile.
24:50
Speaker 4: So the first thing I'd do is look at my
24:51
Speaker 4: risk profile and understand where my assets could potentially be
24:56
Speaker 4: in my investment portfolio. Then I'd look at my values
24:58
Speaker 4: and what I actually want to create eight and why
25:01
Speaker 4: I might want to hold something directly, not saying don't
25:04
Speaker 4: do it, that's not the case, but it's really like
25:06
Speaker 4: it's not really a question a financial advisor could even
25:10
Speaker 4: answer as a personal question because it's kind of like, well,
25:12
Speaker 4: just why do you want to do that is what
25:13
Speaker 4: they're going to ask in the first place.
25:15
Speaker 5: Yeah, interesting that there's no like negative tax implications for
25:18
Speaker 5: investing in something twice and stuff like that, Like it's
25:20
Speaker 5: not nothing wrong with doing it, No, like.
25:22
Speaker 4: You're gonna have tax implications from making money. And as
25:26
Speaker 4: I've said on the podcast before. If you're paying tax,
25:28
Speaker 4: you're making money. That is a great outcome. We need
25:31
Speaker 4: to be careful of turning over assets too quickly. So
25:34
Speaker 4: if you buy some AM's edge shares today, they make
25:37
Speaker 4: a massive profit and you sell them in a week,
25:40
Speaker 4: you're going to have fifty percent more capital gains to
25:42
Speaker 4: pay because you held them for less than twelve months.
25:45
Speaker 2: So there are things to think about.
25:47
Speaker 4: But like you're already going to be paying tax on
25:49
Speaker 4: a profit anyway, it's not really a tax question for me.
25:52
Speaker 4: It's a diversification question and whether that's aligned to your
25:56
Speaker 4: goals and values and your.
25:57
Speaker 2: Risk profile or not.
25:58
Speaker 5: Well answer is that a right?
25:59
Speaker 2: That's what you were going to say anyway, wasn't it
26:01
Speaker 2: that words.
26:02
Speaker 5: Out of my mouth?
26:03
Speaker 2: Actually? So sorry, Sorry Friday guys.
26:06
Speaker 5: Thank you for listening. Please remember that the advice sheared
26:09
Speaker 5: on She's on the Money is general in nature and
26:11
Speaker 5: does not consider your individual circumstances. She's on the Money
26:14
Speaker 5: exists purely for educational purposes and should not be relied
26:17
Speaker 5: upon to make an investment or a financial decision. And
26:20
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26:23
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26:33
Speaker 5: next week, guys.
26:34
Speaker 1: Bye,