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How To Buy Property Without The Bank of Mum and Dad (or a 20% Deposit) · She's On The Money

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Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations
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Speaker 1: woman and I'm here to acknowledge country t glennyan Ganya, Niana,
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Speaker 1: Kaka yah Ya, bin Ahaka Nian our gay In Nimbina,
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Speaker 1: yakarum jar Dominyama, domag Ithawakawaman, damon Imlan Bimba ban Gadabomba
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Speaker 1: in and now in wakah Ghana on yak rum jar Watnadaa. Hello,
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Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.
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Speaker 1: We thank, acknowledge and respect the Abiginal people's land that
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Speaker 1: we're gathering on today. Take pleasure in all the land
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Speaker 1: and respect all that you see. She's on the Money
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Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,
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Speaker 1: knowledge and resources for you to thrive.
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Speaker 2: She's on the Money. She's on the Money.
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Speaker 3: Hello, and welcome to She's on the Money, the podcast
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Speaker 3: that helps you turn big money goals into everyday realities.
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Speaker 3: If you've been quietly thinking I'm never going to own
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Speaker 3: a home unless I marry rich or I win the lottery,
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Speaker 3: my friends, this episode is going to be for you
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Speaker 3: because you don't need an inheritance You don't need a partner,
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Speaker 3: you don't need to earn six figures, and you might
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Speaker 3: not even need to have a whole twenty percent deposit
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Speaker 3: for your home. What you do need, though, is a
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Speaker 3: strategy and one that works to your reality. I'm Victory
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Speaker 3: Devine and you may be wondering, well, where's Beck today,
1:46
Speaker 3: my friends, She's off gallivanting. But don't worry, because you
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Speaker 3: are in very good hands because today I am joined
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Speaker 3: by miss Jesse Grici, who's currently on her own journey
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Speaker 3: to buy a home without the bank of mum and dad. Jess,
2:01
Speaker 3: welcome back to what I would say is your own show.
2:04
Speaker 3: Thank you.
2:05
Speaker 4: At this point, why not think about any opportunity to
2:07
Speaker 4: make it all about me.
2:08
Speaker 3: Any opportunity for me to get you on the show
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Speaker 3: and talk about property. I feel it works really well
2:13
Speaker 3: because like, you're the one that's in the nitty gritty
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Speaker 3: of it at the moment, and I couldn't think of
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Speaker 3: anyone better to do this episode with me, because you're
2:21
Speaker 3: not only doing it without the help of your parents,
2:24
Speaker 3: but you're buying solo without the help of your partner
2:26
Speaker 3: as well.
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Speaker 2: So tell me about that.
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Speaker 3: Yeah.
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Speaker 4: So, I feel like most people probably know this story
2:30
Speaker 4: by now, but my partner and I were just in
2:33
Speaker 4: very different financial situations. I've been working full time since
2:36
Speaker 4: I was eighteen. He's been in and out of a
2:39
Speaker 4: few different university courses, kind of figuring out his life path,
2:42
Speaker 4: And so that meant that I had the benefit of
2:45
Speaker 4: time on my side where I've kind of gotten myself
2:48
Speaker 4: into debt, gotten myself out of debt. So you've done
2:50
Speaker 4: a house deposit, doesn't journey? Yeah, before he even really
2:53
Speaker 4: entered the workforce properly full time, so I was in
2:56
Speaker 4: a financial position to purchase and he wasn't. And also
3:00
Speaker 4: I think for me, I really like the idea of
3:03
Speaker 4: having my own asset. The sense of security that that
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Speaker 4: will give me will be really significant, and hopefully, you know,
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Speaker 4: I buy the first house, we live in that together,
3:10
Speaker 4: and then eventually, when he's ready, we buy our forever
3:13
Speaker 4: home together exactly.
3:15
Speaker 3: And I feel like for those of you who might
3:17
Speaker 3: not have heard, you know, Jess's journey or like what
3:20
Speaker 3: her plan is before, I feel like it just really
3:22
Speaker 3: proves that every single person's path is very different to
3:25
Speaker 3: home ownership, which is why getting clear on your own
3:29
Speaker 3: why is the first tip that I have put on
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Speaker 3: my list for today. You need to know why do
3:35
Speaker 3: you actually want to have a forever home?
3:36
Speaker 1: Jess.
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Speaker 3: You've talked a lot about the importance of having a
3:39
Speaker 3: forever home for security and like, you know, you want
3:42
Speaker 3: to make sure that you've got your own back, or
3:45
Speaker 3: like some people are looking for, you know, a finel
3:48
Speaker 3: home because they want to get their foot in the
3:50
Speaker 3: door or their you know, foot on the ladder or
3:52
Speaker 3: whatever we're calling it. We need to ask ourselves is
3:55
Speaker 3: your timeline tied to like specific life goals, like maybe
3:59
Speaker 3: you want to start a family in like five years,
4:01
Speaker 3: or you're planning to move into the country. You need
4:04
Speaker 3: to ask yourself are you in it for capital growth?
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Speaker 3: Like are you looking at this as an investment? Is
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Speaker 3: this an asset class? So should we be looking at
4:11
Speaker 3: potentially rent vesting instead? Like if that's the case, where
4:14
Speaker 3: can we get the biggest bang for our buck? And
4:18
Speaker 3: are you only considering it And this is a big one.
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Speaker 3: Are you only considering home ownership because society has been
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Speaker 3: telling you that that's a good idea in something that
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Speaker 3: you should do. Like I know, growing up, a part
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Speaker 3: of my narrative that i'd made up in my head
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Speaker 3: by the way, I was probably going to be married.
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Speaker 2: I would have had two kids by the.
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Speaker 3: Time I was twenty five in my head, right, because
4:38
Speaker 3: like twenty five, Oh, my god's so old. Yes, and
4:41
Speaker 3: I would have owned my own home. But that's because
4:43
Speaker 3: ingrained in me was the Greatestralian dream. Everyone does that, right,
4:46
Speaker 3: It's kind of like a ride of passage.
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Speaker 2: Yeah, and that's not the reality anymore.
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Speaker 3: So I think we really need to think about our goals,
4:53
Speaker 3: because yeah, buying a home's massive, but it doesn't mean
4:57
Speaker 3: it's always going to put you in the best possible
5:00
Speaker 3: financial position. Like I've done so many projections when I
5:03
Speaker 3: was a financial advisor for clients that said, actually, you're
5:07
Speaker 3: in a better financial position long term if you just
5:09
Speaker 3: keep renting and we invest this money somewhere else or
5:12
Speaker 3: we do something else, because they were like, oh, yeah,
5:14
Speaker 3: I don't actually care about this, and I was like, right, well,
5:16
Speaker 3: in that case, let's look at all of our options.
5:20
Speaker 3: So it's important to understand your why because from my perspective,
5:25
Speaker 3: that is going to shape literally everything that you do.
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Speaker 3: It's going to shape your timeline, it's going to shape
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Speaker 3: your budget, it's going to shape the strategy that you
5:34
Speaker 3: implement where we're buying what that actually looks like. Yes,
5:38
Speaker 3: you are so type A and I love it. But
5:42
Speaker 3: that means that you have some very specific property goals.
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Speaker 3: Like you and I were talking yesterday about this potential
5:49
Speaker 3: block of land that you're going to buy, and you
5:51
Speaker 3: were like, look, I did tell them that I would
5:53
Speaker 3: have either east or west facing, but nothing else. And
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Speaker 3: I was like, oh my god, you are so specific,
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Speaker 3: So tell me what are your property goals?
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Speaker 4: So it's not going to be forever home because I'm
6:04
Speaker 4: very aware of the fact that buying by myself, I
6:07
Speaker 4: only have so much money available to me, right and
6:10
Speaker 4: so unfortunately that means I can't build my ultimate dream home,
6:13
Speaker 4: which is okay. So I'm really I've kind of done
6:17
Speaker 4: a lot of work on what am I non negotiables,
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Speaker 4: What am I not willing to compromise on, Versus what
6:21
Speaker 4: am I happy to compromise on. For me, orientation of
6:24
Speaker 4: the block is a big one because I freelancing content creation.
6:28
Speaker 4: You know, It's also just a big thing for my
6:30
Speaker 4: mood as someone who suffers from sad, so it's having
6:33
Speaker 4: as much light in there as possible is a really
6:35
Speaker 4: big thing for me. And east and west are the
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Speaker 4: two optimal positions.
6:38
Speaker 3: Where was it was?
6:40
Speaker 2: Yeah, good memory.
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Speaker 4: High ceilings, I've said before, is another one because I
6:43
Speaker 4: am going to have to buy a smaller block that
6:45
Speaker 4: fits within my budget. High ceilings makes the space feel bigger,
6:48
Speaker 4: let's more light in that sort of thing. And the
6:51
Speaker 4: other thing that I was looking at a lot is
6:53
Speaker 4: I'm looking in a really specific area. It's the area
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Speaker 4: that I currently live. Location Wise, it could not be
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Speaker 4: more ideal for my lifestyle. But there's also, from my perspective,
7:03
Speaker 4: really good opportunity for capital growth because of the location
7:07
Speaker 4: it's in.
7:08
Speaker 3: And you're getting lots of infrastructure in that instruction is
7:11
Speaker 3: as well.
7:12
Speaker 2: Exactly right.
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Speaker 4: So I think without getting too specific because I don't
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Speaker 4: want to give away.
7:16
Speaker 2: Where I hopefully sure what was the address you were
7:18
Speaker 2: looking at it.
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Speaker 4: But there's lots of things happening that I think will
7:22
Speaker 4: make it really appealing to potential buyers in the future
7:25
Speaker 4: when I do eventually move on from the process.
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Speaker 3: So you've got to have a think about, like, how
7:29
Speaker 3: are you going to pitch this to somebody else, like
7:31
Speaker 3: if you were selling their property. Is it close to schools,
7:35
Speaker 3: is it close to public transport, Like, what does that
7:37
Speaker 3: actually look like? Because sometimes we can get our hearts
7:40
Speaker 3: set on something. Right, We've got this client at the
7:43
Speaker 3: moment who is trying to sell a property to move
7:46
Speaker 3: into their next one. But they bought their dream home
7:49
Speaker 3: in the country stunning but really niche, and it's been
7:53
Speaker 3: on the market for two years, so it's been really
7:55
Speaker 3: hard for them to sell, and like, that's okay, we
7:58
Speaker 3: kind of anticipated this, But what does that look like
8:02
Speaker 3: for you? Is that something that you're going to have
8:03
Speaker 3: to consider? And I guess once you've got your like
8:06
Speaker 3: why am I buying?
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Speaker 2: What would that actually look like?
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Speaker 3: I think that's you know where we actually do have
8:12
Speaker 3: to do the zoom out and we do have to
8:13
Speaker 3: do the what I'm going to call like a market
8:16
Speaker 3: reality check. You need to know what your goal is
8:19
Speaker 3: actually going to cost you because, like Jess, I think
8:22
Speaker 3: if I sat you down, maybe like even five years ago,
8:24
Speaker 3: when we started talking about, like you saving for your
8:26
Speaker 3: home deposit, we probably had these really big wish list
8:30
Speaker 3: of things that we want. Yeah, I want a really
8:32
Speaker 3: big block, I want a really big house, like all
8:34
Speaker 3: of these things that I think we all really want.
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Speaker 3: But that doesn't mean that that's going to be our reality.
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Speaker 3: That doesn't mean that that's what we're going to be
8:41
Speaker 3: able to afford. So what we want to do is
8:43
Speaker 3: get super familiar not just with the area, but with
8:46
Speaker 3: the market. And this isn't just about like doom scrolling,
8:49
Speaker 3: because I doom scroll relyrealestate dot com dot I don't
8:52
Speaker 3: know about you at midnight with a glass of wine.
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Speaker 3: It's about let's look at what our goals are going
8:57
Speaker 3: to cost us. Let's look at very clean sold prices,
9:01
Speaker 3: not asking crisis. What is property moving for? If you're
9:04
Speaker 3: in it for an investment or capital growth? I want
9:07
Speaker 3: you to start learning what makes a good property investment.
9:11
Speaker 3: If you don't know, you need to know. We're not
9:13
Speaker 3: buying an investment property without understanding what rental yield is, what.
9:17
Speaker 2: It looks like for capital growth.
9:19
Speaker 3: What it looks like for you know, tenancy does. How
9:23
Speaker 3: much is that going to cost you? If you're going
9:25
Speaker 3: to pay a real estate agent to manage your property,
9:28
Speaker 3: how much is that? Do you understand? What is gentrification potential?
9:32
Speaker 3: Are you buying in an area a bit like Jess
9:34
Speaker 3: where you know that in the next ten years there's
9:38
Speaker 3: going to be new schools, another hospital, things popping up
9:41
Speaker 3: and you go, Okay, cool, I can see how this
9:43
Speaker 3: might become a little bit more expensive.
9:45
Speaker 2: What does that actually look like?
9:47
Speaker 3: And Jess, you and I actually did another episode recently
9:50
Speaker 3: and will put a link in the show note to
9:53
Speaker 3: the episode about how to find your dream property. And
9:56
Speaker 3: this is going to sound like a little bit like
9:58
Speaker 3: I'm being a downer and I don't mean, but like
10:01
Speaker 3: we don't just have to look at the property. We
10:03
Speaker 3: actually have to get really real about our own numbers
10:05
Speaker 3: as well. Yes, when you were starting to work out
10:09
Speaker 3: okay I want to buy, what did you do to
10:12
Speaker 3: work out what you could afford?
10:14
Speaker 4: I mean, speak to a broker is probably the most
10:16
Speaker 4: obvious they're going to be much so. But like what else, Yeah,
10:21
Speaker 4: doing a detailed budget I think is a really good
10:24
Speaker 4: You need to understand what are your bare bones living expenses,
10:27
Speaker 4: like what does it cost you to exist? Because that
10:30
Speaker 4: at the most extreme that you can cut back to.
10:32
Speaker 4: I think because we've seen over the last maybe four years,
10:35
Speaker 4: there's been so many ups and downs with interest rates,
10:38
Speaker 4: and you know, at its peak there were people who
10:40
Speaker 4: were having to sell because they couldn't afford to live
10:43
Speaker 4: their life and make their mortgage repayments, So having a
10:45
Speaker 4: really clear understanding of your budget, what you're spending, what
10:49
Speaker 4: can you realistically pay towards a mortgage, and what could
10:51
Speaker 4: you comfortably pay too, because just because you can live
10:54
Speaker 4: off that bare bones doesn't mean that you want to
10:56
Speaker 4: do that for the next you know, ten, fifteen, twenty years.
10:59
Speaker 3: Yeah, it's like you could be when you said before,
11:02
Speaker 3: talk to a mortgage broker, but you could sit down
11:03
Speaker 3: and talk to a mortgage broker and they might go, Okay,
11:06
Speaker 3: jess well you can borrow eight hundred thousand dollars And
11:09
Speaker 3: you might go, oh, that's fantastic, But I've kind of
11:11
Speaker 3: done my budget and I don't really want to afford
11:14
Speaker 3: the repayments on eight hundred thousand dollars, Like my lifestyle
11:17
Speaker 3: looks more like six hundred thousand dollars. And I think
11:21
Speaker 3: it can be really exciting talking to a broker because
11:24
Speaker 3: you go, oh my god, I didn't realize I could
11:26
Speaker 3: borrow so much, and that sometimes happens, and then you
11:29
Speaker 3: need to be really real do you actually want to
11:31
Speaker 3: borrow that amount?
11:33
Speaker 2: Because you know, the bank might say, Jessica, Ricky, you
11:35
Speaker 2: can borrow a million dollars.
11:37
Speaker 3: I must bear an ass but no, but the repayments
11:40
Speaker 3: on that would be crippling. Absolutely, it would take up
11:43
Speaker 3: all of your income and you wouldn't have any lifestyle.
11:47
Speaker 3: And as much as I think we are so happy to,
11:51
Speaker 3: I don't know, scrimp and save when we're getting our deposit,
11:54
Speaker 3: do you want that to be the reality for the
11:56
Speaker 3: next thirty years as well? Like I feel like we
11:59
Speaker 3: just want to get our deposit and like we're willing
12:00
Speaker 3: to make a million sacrifices. But then once you are
12:04
Speaker 3: in the house, are you actually happy now you're here?
12:07
Speaker 3: Now we've achieved the goal to just eat two minute
12:10
Speaker 3: noodles every Friday night because we can't afford anything else.
12:13
Speaker 4: Yeah, do you want to put furniture in the house? Although,
12:15
Speaker 4: so we can sit on the ground. So it's yeah,
12:18
Speaker 4: understanding that. Understanding your borrowing capacity too, because depending on
12:21
Speaker 4: your circumstances, just because I can save three and a
12:24
Speaker 4: half thousand dollars a month doesn't mean that a bank
12:27
Speaker 4: will necessarily loan me a mortgage that would be three
12:29
Speaker 4: and a half thousand dollars return. So understanding what that
12:31
Speaker 4: borrowing capacity look can be really disappointing to absolutely, And
12:35
Speaker 4: so you know there's schemes and grants and things, which
12:37
Speaker 4: is I guess where your broker comes in to kind
12:39
Speaker 4: of help you look at all of the options, understand
12:41
Speaker 4: your serviceability, and also you know, checking in on all
12:45
Speaker 4: of your just other financial health stuff. Do you have
12:48
Speaker 4: debt that you want to pay down because that might
12:50
Speaker 4: increase your borrowing capacity. Do you have day to day
12:53
Speaker 4: spending or a credit score that you need to improve
12:55
Speaker 4: because by improving your credit score, you might increase what
12:58
Speaker 4: you can borrow from a bank of little things. But
13:00
Speaker 4: I would say talking to a broker is probably the cleanest,
13:03
Speaker 4: easiest way, so they can be really holistic in the
13:05
Speaker 4: way they approach.
13:06
Speaker 2: It with you.
13:06
Speaker 3: Yeah. I don't think this is going to surprise anybody,
13:09
Speaker 3: but as an ex financial advisor, when my husband and
13:11
Speaker 3: I were sitting down to work out what we could
13:13
Speaker 3: borrow for our first time we'd worked it out, we'd
13:17
Speaker 3: spoken to a broker because even though I own a
13:19
Speaker 3: mortgage brokerage, I don't do it myself. Actually have one
13:22
Speaker 3: of our brokers do the work for me, because I'm like,
13:25
Speaker 3: I don't want to just you know, do it myself
13:27
Speaker 3: and then mess it up. They're better at it they
13:29
Speaker 3: told me I could borrow more than what Steve and
13:31
Speaker 3: I had like quote budgeted per month for our repayments,
13:34
Speaker 3: which was a nice position to be in, but we
13:37
Speaker 3: didn't want to do that because we had plans to
13:40
Speaker 3: have a family, We had plans to have a wedding,
13:42
Speaker 3: we had like all these other things that I was like,
13:44
Speaker 3: so it's not a debt, like you know, it's not
13:47
Speaker 3: a repayment now, but like what would it look like
13:50
Speaker 3: if we had a baby?
13:51
Speaker 2: Yeah, do we want to be able to live off
13:54
Speaker 2: one income? Still? Like you know, what would maternity leave
13:58
Speaker 2: look like? What would paternity leave?
14:00
Speaker 3: You know what I mean? Like, there were just lots
14:01
Speaker 3: of conversations to be had and it can be I
14:04
Speaker 3: don't know, boring and confronting, but like do all of that.
14:08
Speaker 3: So you're putting yourself in the best possible position. So
14:12
Speaker 3: just next step, we're going to be aligning our goals
14:15
Speaker 3: with being realistic. So I guess we've been kind of
14:19
Speaker 3: like hinting towards that, like, oh, you can borrow a
14:21
Speaker 3: million dollars, but maybe you shouldn't. Yeah, if your numbers
14:25
Speaker 3: don't line up with the dream, So like you go
14:27
Speaker 3: to a mortgage broker, and you've in your head been like, okay, cool,
14:31
Speaker 3: I've saved twenty percent of a million dollar mortgage, which
14:35
Speaker 3: some people do, right, so that would be two hundred
14:38
Speaker 3: thousand dollars to save two hundred thousand dollars. My goodness,
14:42
Speaker 3: that is so much money, Like one quite unrelatable. Please
14:46
Speaker 3: don't come at me for that, but like quite unrelatable.
14:49
Speaker 3: But like, let's say you've done that because you and
14:51
Speaker 3: your partner, you've sat down. Jess and I always sat down.
14:53
Speaker 3: We're like, we're going to do this week and sacrifice
14:55
Speaker 3: and scrimp and save, and we get to that two
14:57
Speaker 3: hundred thousand dollar mark and then we go see a broker.
15:00
Speaker 3: They go, that's great, we could lend you, Ah, we
15:03
Speaker 3: could lend you eight hundred thousand dollars. No, no, no,
15:05
Speaker 3: I've got a twenty percent deposit for a million dollar home.
15:08
Speaker 1: And they go, no, no, no, no.
15:10
Speaker 3: Even though you have that deposit, it's not just the
15:13
Speaker 3: twenty percent. It's like, we looked at your incomes, and
15:16
Speaker 3: with your incomes, you can only service eight hundred thousand dollars.
15:19
Speaker 3: So I think for me, that's where you want to
15:23
Speaker 3: have conversations earlier around well what would our budget be,
15:27
Speaker 3: What does our serviceability look like like?
15:30
Speaker 2: What would if we had twenty percent? What would the
15:32
Speaker 2: bank lend us?
15:33
Speaker 3: Now it can be heartbreaking, and that's why I'm like, hey, here,
15:38
Speaker 3: can we work that out early so that you don't
15:40
Speaker 3: save a full two hundred And this is obviously unrealistic,
15:42
Speaker 3: but like you know what I'm getting at, Yeah, you
15:44
Speaker 3: don't save two hundred grand and then go to the
15:45
Speaker 3: bank and be like knock knock and they go, haha, bye,
15:48
Speaker 3: We're shut. You need to make sure that if your
15:51
Speaker 3: numbers aren't aligning with your dreams, we can either adjust
15:55
Speaker 3: our dream or.
15:56
Speaker 2: Build a bridge to get there.
15:58
Speaker 3: So, if your dream sub is like out of reach
16:01
Speaker 3: and you still want to buy property, could we potentially
16:04
Speaker 3: like rent best you could go live in the suburb,
16:07
Speaker 3: but we could buy a property somewhere else and lise
16:10
Speaker 3: it out.
16:10
Speaker 2: So we're still on the property ladder.
16:12
Speaker 3: Are we looking at a suburb that is maybe a
16:14
Speaker 3: little bit further out and is cheaper but still gives
16:17
Speaker 3: you the lifestyle that you're looking for.
16:20
Speaker 2: Would we look at maybe lower priced properties.
16:23
Speaker 3: So that we could access government schemes Because on these
16:26
Speaker 3: government schemes like the first home owners grant.
16:29
Speaker 2: They are capped.
16:30
Speaker 3: Different states and territories have different amounts, but they are capped.
16:34
Speaker 3: So do we realign to just buying under that so
16:37
Speaker 3: that we still like kind of slip into having some
16:40
Speaker 3: you know, some nice subsidies we don't have to pay
16:43
Speaker 3: our stamp duty or we might get a little bonus,
16:46
Speaker 3: and then once we're happy, we can talk about moving
16:49
Speaker 3: on to having a strategy. Because it's so nice to
16:51
Speaker 3: have dreams of plans and conversations like this, Ess, But
16:55
Speaker 3: then we need to get into strategy, and you and
16:57
Speaker 3: I are going to do that right after this break.
17:03
Speaker 3: All right, Jess, we are back and I don't know
17:06
Speaker 3: if this is the juicy stuff or the boring stuff,
17:08
Speaker 3: but I'm going to get into it.
17:10
Speaker 2: And that is the strategy. Jess.
17:12
Speaker 3: I want to ask, how did you work out your
17:15
Speaker 3: deposit strategy?
17:17
Speaker 4: So I kind of did the math shocking for me
17:20
Speaker 4: is someone who hates math. But you've got to do
17:23
Speaker 4: what you've got to do, absolutely, so you kind of
17:25
Speaker 4: got to work backwards. You've got to go You've got
17:27
Speaker 4: to do all that pre work that we were talking
17:29
Speaker 4: about before, do your research, figure out what you can borrow.
17:32
Speaker 4: Look at you know, what is achievable for you in
17:35
Speaker 4: terms of what more you do you want to take on,
17:38
Speaker 4: and then go okay, well, what deposit do I need?
17:40
Speaker 4: Are there any schemes that I qualify for? You know,
17:42
Speaker 4: there's the schemes that allow you to purchase with a
17:44
Speaker 4: ten percent deposit and say have a twenty and still
17:46
Speaker 4: avoid l AMI. There are all of these different options
17:49
Speaker 4: that may or may not be available to you that
17:51
Speaker 4: you don't necessarily have to have that traditional twenty percent deposit.
17:55
Speaker 4: So work out what kind of deposit you would need
17:58
Speaker 4: and then work backwards from there. So if you want
18:02
Speaker 4: to buy in the next two years, but you can't
18:04
Speaker 4: save your deposit in that time, you go, okay, well
18:06
Speaker 4: we might need to readjust that timeline. You need to
18:08
Speaker 4: be realistic because, especially in this cost of living crisis,
18:12
Speaker 4: you can only work with what you've got, and so
18:14
Speaker 4: sometimes that does mean exactly like me, like, you've just
18:16
Speaker 4: got to push the timeline out and keep looking and
18:18
Speaker 4: keep saving. I would also say remember the factor in
18:22
Speaker 4: the upfront costs.
18:24
Speaker 3: And that they're so hard, because sometimes if you've gotten
18:27
Speaker 3: so far down the process, you're like, wait, what there
18:30
Speaker 3: are so many I don't want to say hidden because
18:32
Speaker 3: they're not hidden, but costs that you don't consider.
18:35
Speaker 4: So if you don't qualify for a stamp duty exemption,
18:37
Speaker 4: stamp duty is so much money. Conveyancing, getting people to
18:42
Speaker 4: review contracts, building and pest inspection costs, moving costs.
18:45
Speaker 2: And moving costs.
18:46
Speaker 3: Get me because like you forget and then you've like
18:49
Speaker 3: spent all your money on your stamp duty, and like
18:51
Speaker 3: you've paid your conveyancer, and then settlement happens and you're like,
18:54
Speaker 3: I'm so excited, and then you go, oh, get a
18:57
Speaker 3: quote for a moving vehicle.
18:58
Speaker 2: You're like, what do you what do you mean? That's
18:59
Speaker 2: a thousand dollars. It's so exciting.
19:02
Speaker 4: So on top of your deposit to just pay for
19:05
Speaker 4: the house, you also need a lump some of cash
19:07
Speaker 4: to help get you across the line.
19:08
Speaker 2: But all of those other things too. A broker will
19:11
Speaker 2: do that for you.
19:12
Speaker 3: So a broker is always going to give you a
19:13
Speaker 3: little budget that says, okay, cool, this is what stamp
19:16
Speaker 3: duty on that property would look like. Conveyancing, costs, inspections, like,
19:20
Speaker 3: they will absolutely let you know. So if you're worried
19:23
Speaker 3: about like, oh, what have I not taken into consideration.
19:26
Speaker 3: Your broker is going to know.
19:27
Speaker 4: Yeah, and they should be able to talk you through
19:28
Speaker 4: what all of that looks like. And then once we've
19:30
Speaker 4: got those two kinds of things, once we know how
19:33
Speaker 4: much of a deposit we will need to get into
19:34
Speaker 4: the property and what our timeline looks like, you're pretty
19:37
Speaker 4: much just dividing it right. You're going, okay, lady X deposit.
19:40
Speaker 4: Let's say I need the two hundred thousand dollars and
19:42
Speaker 4: I want to do it in two years. How much
19:44
Speaker 4: do I need to save her month? And then you
19:45
Speaker 4: might go, oh, I got two hundred thousand dollars in
19:47
Speaker 4: two years. It's kind of insane and that's actually not
19:49
Speaker 4: going to happen here me. And then we readjust the timeline.
19:52
Speaker 4: So see, you've got to work out what's practical for you.
19:55
Speaker 4: I think having set a realistic goal too, because it's
19:58
Speaker 4: easy and good to go, oh, I can say seventy
20:00
Speaker 4: five percent of my income, no problems. If you're doing
20:02
Speaker 4: that for five years, it can be really tough if
20:05
Speaker 4: you have to constantly be making sacrifices. So think about
20:09
Speaker 4: what's doable for you, what works with your lifestyle, with
20:12
Speaker 4: your budgeted spending for just existing in the world. Yeah,
20:16
Speaker 4: because I think as well, because it can take so
20:18
Speaker 4: long now to save a deposit. If you're not realistic
20:21
Speaker 4: with yourself, it can be really disheartening and it can
20:23
Speaker 4: feel like you're just swimming up here constantly.
20:25
Speaker 3: And so that's why I keep saying things like, oh,
20:27
Speaker 3: I don't need to be a downer, but because I
20:29
Speaker 3: need to be realistic. Yeah, but it can feel like trash.
20:33
Speaker 4: Absolutely, So set yourself up for success and if we
20:35
Speaker 4: can shorten that timeline, great, But I think give yourself
20:38
Speaker 4: some room to.
20:39
Speaker 2: Breathe, to get one hundred percent.
20:41
Speaker 3: And I think we always think about the destination and
20:45
Speaker 3: forget that maybe we should enjoy the journey as well. Yeh.
20:48
Speaker 3: I would much prefer it to take you another year.
20:51
Speaker 3: But you've had like a banger of a few years
20:53
Speaker 3: as opposed to you've scrimped and saved, and you feel
20:55
Speaker 3: like you're just drowning. Like that's not fun for anybody.
20:58
Speaker 3: And I guess the good is, once you've done all
21:02
Speaker 3: of those hard parts and you've built the plan, there
21:05
Speaker 3: are ways to speed it up. So let's have a
21:07
Speaker 3: chat about how you could potentially turbocharge your savings strategy
21:12
Speaker 3: and then get there sooner. So should we say, I
21:15
Speaker 3: guess let's start with like my favorite mouthful, which is
21:18
Speaker 3: the first time super Cider scheme. It just rolls off
21:20
Speaker 3: the tongue, just rolls off the tug. Jess you've capped
21:24
Speaker 3: that out. You've maxed out your first time super Saviors scheme.
21:27
Speaker 3: Can you tell us how you did that?
21:29
Speaker 2: What did that look like? Why did you do that?
21:32
Speaker 3: Well?
21:32
Speaker 2: I did it because you told me to.
21:34
Speaker 3: No, no, no, sorry, backtrack. I am an ex financial advisor.
21:38
Speaker 3: I would never give you that advice, Jessica. No, you
21:40
Speaker 3: mean I showed you it and you said, wow, that's
21:43
Speaker 3: such a good idea. I off my own back, would
21:45
Speaker 3: absolutely love to do that, Victoria, exactly right.
21:47
Speaker 2: But it is a really great scheme.
21:49
Speaker 4: So it allows you to put your money into your
21:52
Speaker 4: superannuation fund and take advantage of the tax rate that
21:56
Speaker 4: exists within super.
21:57
Speaker 3: So that's fifteen percent, and most people listening to this podcast,
22:01
Speaker 3: they're going to have a thirty percent tax rate, so
22:03
Speaker 3: that's half off. Correct money win? Is that basically like
22:06
Speaker 3: legal money laundry?
22:07
Speaker 2: I think so potentially it's really nice.
22:10
Speaker 4: I made post tax contributions, so because my money had
22:12
Speaker 4: already been taxed before it got paid to me. I
22:15
Speaker 4: would just transfer from my bank account into my superannuation
22:17
Speaker 4: fund and at tax time I would let my account
22:20
Speaker 4: to know it or you can put it in when
22:21
Speaker 4: you do your tax on my GAV and I would
22:23
Speaker 4: then get fifteen percent of that money back, which was
22:26
Speaker 4: it felt like free money.
22:27
Speaker 2: It was does feel like free money, because that's kind.
22:30
Speaker 4: Of what it is.
22:31
Speaker 2: Yeah, so it's kind of for savings.
22:33
Speaker 4: You're paying potentially fifty percent or more less tax on
22:37
Speaker 4: you know, the money that you're getting. You can put
22:39
Speaker 4: a maximum of fifteen thousand dollars in per financial year,
22:43
Speaker 4: and you can contribute up to a total amount of
22:45
Speaker 4: fifty thousand dollars, so if you wanted to, you could contribute.
22:50
Speaker 3: To your late rich rich You've got like fifty thousand
22:52
Speaker 3: dollars sitting in your first time supersize.
22:54
Speaker 2: No, it's lovely.
22:55
Speaker 4: It's really great because you can also withdraw one hundred
22:58
Speaker 4: percent of the non concessional contribution, so the money you
23:00
Speaker 4: put in, but also eighty five percent of the associated earnings.
23:05
Speaker 3: So people, it's been there a while and it's just
23:06
Speaker 3: been banking up and maybe we got like a ten
23:09
Speaker 3: percent return last year on the Australian share market.
23:12
Speaker 2: Where's that going, jess your back pocket?
23:14
Speaker 4: It's going right into my house deposit fund. And it
23:16
Speaker 4: is a thank you so much. We needed that little boost.
23:18
Speaker 4: So I would really recommend looking into it. We've said before,
23:21
Speaker 4: if you're planning on purchasing soon, look at the timeline
23:24
Speaker 4: in terms of financial year, because the contribution is per
23:27
Speaker 4: financial year. Theoretically you could contribute, you know, once in
23:31
Speaker 4: June and then once in July.
23:33
Speaker 3: Yeah, technically, and I mean this is going to drop
23:36
Speaker 3: after that. I mean it's July now while we're recording this.
23:39
Speaker 3: But if you're planning on buying next July, it's the
23:43
Speaker 3: end of July. You could drop it in now and
23:46
Speaker 3: then wait and then drop it in in July and
23:49
Speaker 3: then pull it straight back out.
23:50
Speaker 2: But we can't give tax advice. We definitely can't.
23:53
Speaker 4: But if we're keeping in mind, because I think that
23:56
Speaker 4: like that gives you such a huge advantage because that's
23:58
Speaker 4: fifteen percent more that you could put straight back into your.
24:01
Speaker 2: Fund, one hundred percent.
24:02
Speaker 3: And I think just the idea that it's out of sight,
24:06
Speaker 3: out of mind is also quite helpful for first home
24:08
Speaker 3: buyers because I don't know about you. No, actually I
24:11
Speaker 3: do know about you. I know you wouldn't do this,
24:14
Speaker 3: But I personally am really good at dipping into my
24:17
Speaker 3: savings if they're easily accessible. It's kind of like them
24:20
Speaker 3: being locked away so that you can't touch your home deposit,
24:24
Speaker 3: which feels really nice. And I mean, for most of us,
24:28
Speaker 3: saving fifteen thousand dollars a year is honestly capping out
24:31
Speaker 3: what we can save. So like, yes, there's caps on
24:34
Speaker 3: how much you can contribute per financial year. And I
24:37
Speaker 3: remember talking to you and not giving you advice, but
24:40
Speaker 3: talking to you about your options with the First Home
24:43
Speaker 3: Super Saviors scheme, and you'd actually saved up a heap
24:46
Speaker 3: in your bank account. Yeah, and so you were making
24:49
Speaker 3: lump some contributions and kind of like taking the money
24:52
Speaker 3: you'd already saved, popping it into the First Home Super
24:54
Speaker 3: Saviors scheme to then get the tax back at a
24:57
Speaker 3: later date, which ended up being a money win.
24:59
Speaker 2: And I think a lot of people think, oh.
25:01
Speaker 3: Well, I didn't use it from the start, No, you
25:03
Speaker 3: can just use it now, Like I think that's the
25:06
Speaker 3: benefit of it as well.
25:07
Speaker 2: I totally agree.
25:08
Speaker 4: Now the next one gets a bit of a bad rap,
25:10
Speaker 4: and I know that a lot of people really want
25:12
Speaker 4: to avoid it.
25:13
Speaker 2: I'm also one of those people.
25:14
Speaker 4: I'm not going to lie to you, but for everyone
25:17
Speaker 4: at home, can you explain a little bit about l
25:19
Speaker 4: am I. Okay?
25:20
Speaker 3: So, l am I is something that our community seem
25:23
Speaker 3: to think is the devil, and I would like to
25:25
Speaker 3: let you know that it is a really good tool
25:28
Speaker 3: in some aspects or for some people. It stands for
25:32
Speaker 3: Lenda's Mortgage insurance, and it's an insurance that you pay
25:35
Speaker 3: that has nothing to do with protecting you, jess That
25:37
Speaker 3: doesn't protect you at all, which is why I think
25:40
Speaker 3: a lot of people hate the idea of it, because
25:43
Speaker 3: if you pay el am I, you are protecting the bank,
25:46
Speaker 3: not yourself. And the reason you're paying that is it's
25:49
Speaker 3: an insurance that the bank says you don't have a
25:52
Speaker 3: full twenty percent deposit, Jessica. So because you don't get
25:56
Speaker 3: any LMI waivers, there's no benefits here. We're going to
26:00
Speaker 3: make you take out this insurance and you're going to
26:01
Speaker 3: pay for this insurance because if you can't pay for
26:04
Speaker 3: your home loan, the insurer will, and that's a good
26:07
Speaker 3: deal for us. But you're the one that kind of
26:09
Speaker 3: pays for the insurance on behalf of the bank. Now,
26:12
Speaker 3: in Australia, l AMI is usually payable and there's lots
26:16
Speaker 3: of exemptions, but ELMI is usually payable if your deposit
26:20
Speaker 3: on your first home or any home is less than
26:23
Speaker 3: twenty percent of the property price. So the amount is
26:26
Speaker 3: going to be really dependent on your deposit amount, the
26:30
Speaker 3: property price, your loan provider. And yes, you'll pay more,
26:34
Speaker 3: but let's go back, yes and like hopefully maybe reframe
26:38
Speaker 3: el AMI. So you hate ELEMI I know you do
26:41
Speaker 3: because you don't want to pay for something useless, and
26:43
Speaker 3: I totally get that. But if I sat you down
26:47
Speaker 3: and said, okay, Jess, you can purchase three years ago
26:49
Speaker 3: because you only have ten percent of the deposit and
26:52
Speaker 3: then you'll have to pay and then this goes on
26:54
Speaker 3: to your mortgage, so you don't have to have this
26:56
Speaker 3: in savings, an extra ten thousand dollars and you can
27:00
Speaker 3: purchase today. Tell me whether you would have taken that
27:03
Speaker 3: up three years ago given the property price increases in
27:06
Speaker 3: your area.
27:07
Speaker 4: Yeah, I mean, hindsight is twenty twenty, right, Like you
27:09
Speaker 4: can look at it and go, oh wow, the growth
27:11
Speaker 4: has been crazy over the past few years.
27:13
Speaker 2: But yeah, it definitely can be worth it.
27:15
Speaker 4: I think if it's going to be the difference between
27:17
Speaker 4: that time in the market and potentially avoiding such significant increases,
27:21
Speaker 4: and I.
27:21
Speaker 3: Think that that's where we need to frame it, Like,
27:23
Speaker 3: obviously we don't want to pay for things that are unnecessary,
27:26
Speaker 3: but often el AMI is a tool that you can
27:29
Speaker 3: use and pay for to get into the market sooner
27:33
Speaker 3: when you don't have the full deposit, Like if you've
27:35
Speaker 3: only got ten percent, you're like, oh, getting to this
27:37
Speaker 3: twenty percent, Like I'm now on maternity leave, or you know,
27:41
Speaker 3: my partner's job changed, or I want to do something,
27:44
Speaker 3: or you know, we want to get married, so like
27:46
Speaker 3: now we're saving for a home deposit and a wedding.
27:49
Speaker 3: We have a ten percent deposit though, or we have
27:51
Speaker 3: a five percent deposit and we need to talk to
27:53
Speaker 3: a mortgage broker. Maybe paying el am I gets you ahead.
27:57
Speaker 3: And I think with the astronomical amount that property has
28:01
Speaker 3: been increasing for a lot of our clients when we
28:04
Speaker 3: do projections, paying l AMI actually makes a lot of
28:06
Speaker 3: sense for them. But I totally get not wanting to
28:09
Speaker 3: pay for an insurance that one doesn't benefit you, but
28:12
Speaker 3: two just feels like another bloody costs totally. Yeah, so yes,
28:17
Speaker 3: sometimes it is cheaper to pay l am I now
28:19
Speaker 3: and get into the market sooner and start building equity.
28:22
Speaker 3: And I guess that's where I'm not saying, Oh it
28:25
Speaker 3: means that blanket it's good for everybody, it's not.
28:28
Speaker 2: You need to talk to your mortgage.
28:29
Speaker 3: Broker and then they'll like mock up a few scenarios
28:32
Speaker 3: for you to go, Okay, cool, this looks like this
28:35
Speaker 3: or this looks like that. Now, Jess, do you have
28:38
Speaker 3: any other hacks or tips or tricks forgetting our deposit?
28:41
Speaker 2: Yeah, totally.
28:42
Speaker 4: I think automating your savings, paying yourself first, and being
28:45
Speaker 4: really strict in the four hard though it is hard,
28:50
Speaker 4: but you kind of have to go, Okay, if we're
28:52
Speaker 4: doing this, we're doing it. In the four years that
28:54
Speaker 4: I've been saving my house deposit, I have not like
28:58
Speaker 4: if you look at the bank account that my deposit
29:00
Speaker 4: is saved in, there is not a single withdrawal in
29:03
Speaker 4: that for you. Okay, little miss flex money and she
29:07
Speaker 4: never comes out, like in my mind, And that's where
29:10
Speaker 4: having a really clear budgeting in place really benefits you.
29:14
Speaker 4: Like some months I might contribute more than others, and
29:17
Speaker 4: you can automate that outside just rich.
29:21
Speaker 2: Just drop the eye.
29:23
Speaker 4: So automating is a really great way using a high
29:25
Speaker 4: interest savings account to if you can, to take, you know,
29:28
Speaker 4: get where your money work.
29:29
Speaker 2: Exactly.
29:30
Speaker 4: If I look at the interest that comes into my
29:31
Speaker 4: accounts every month, the bulk of it comes from my
29:34
Speaker 4: house deposit.
29:35
Speaker 2: And that's lovely because then I just chuck that in
29:36
Speaker 2: there too. It's very nice. One hundred percent that must
29:39
Speaker 2: let us.
29:39
Speaker 4: And if you ask someone who's tends to touch your savings,
29:41
Speaker 4: you need to add some kind of friction to prevent
29:44
Speaker 4: yourself from doing that. So is it having a completely
29:46
Speaker 4: separate bank from you know you're existing? Is it a
29:49
Speaker 4: bank account that you can lock. Is it something that
29:52
Speaker 4: requires double authentication or a password, or just something that
29:56
Speaker 4: will stop you from going, oh, I need quick money,
29:59
Speaker 4: Now where.
29:59
Speaker 2: Can I take make it from? You are not taking
30:01
Speaker 2: them from your home deposit. The money goes in there
30:03
Speaker 2: to die. That's few to you.
30:04
Speaker 3: Yeah, that's few to you. Do not steal from her,
30:07
Speaker 3: exactly right. The other thing, just that you and I
30:10
Speaker 3: talk a lot about is lifestyle creep. And I hate
30:12
Speaker 3: it because I feel like, over time, life just gets
30:15
Speaker 3: more expensive because I think in my head, I deserve
30:18
Speaker 3: nicer stuff, to go to nicer restaurants, to buy more
30:21
Speaker 3: expensive makeup. We're shopping at different, more higher end stores.
30:24
Speaker 3: Like I'm not saying that's a bad thing, but doing
30:27
Speaker 3: a little bit of a like lifestyle audit can be
30:30
Speaker 3: really helpful. Like, if you are a Jessica Rici, you
30:36
Speaker 3: want to save your deposit as aggressively as possible. Like,
30:40
Speaker 3: let's have a look at some scenarios. If you're like, really,
30:43
Speaker 3: I'm going to crack down for twelve months, could you
30:46
Speaker 3: live somewhere cheaper, like if you rent an apartment, could
30:49
Speaker 3: you maybe live in a share house for twelve months?
30:52
Speaker 3: Could like do you actually use your car? Could you
30:55
Speaker 3: sell your car and go car free even for twelve months,
30:58
Speaker 3: because you're going to save money on petrol, You're going
30:59
Speaker 3: to save money on redro and insurance, Like, there are
31:02
Speaker 3: a heap of benefits there. You could pick up a
31:04
Speaker 3: car in twelve months. What would that look like? What
31:07
Speaker 3: other expenses are.
31:08
Speaker 2: You able to cut.
31:09
Speaker 3: I'm not saying, oh, you have to get rid of
31:12
Speaker 3: every single subscription, because for me, it's about the journey,
31:15
Speaker 3: But like, go, what are you spending money on there?
31:17
Speaker 2: Maybe you don't need to for a little while.
31:19
Speaker 3: Yeah, because sometimes I think when we're cutting things from
31:22
Speaker 3: our budget, we go, oh my god, no, I'll want
31:24
Speaker 3: that in the future, Okay, But like we could cut
31:27
Speaker 3: it right now, save some money and you can have
31:29
Speaker 3: it later. And I guess the other thing is serviceability,
31:34
Speaker 3: which is how much money the bank is going to
31:35
Speaker 3: be able to lend you. One of the things that
31:38
Speaker 3: can really play into that and really play into turbocharging
31:42
Speaker 3: your ability to get to the deposit amount you want.
31:46
Speaker 3: How could we increase their income? Can you talk to
31:49
Speaker 3: your boss about a pay rise? Could you be switching
31:52
Speaker 3: jobs for better pay? Could you pick up like a
31:54
Speaker 3: side gig or a side hustle. Is there something that
31:57
Speaker 3: you could do or make on your own you could
31:59
Speaker 3: sell or rent out, Like Jess is the Queen of
32:03
Speaker 3: side hustles. Not only do you have your own little
32:05
Speaker 3: content creation thing on the side, you also rent dresses out.
32:09
Speaker 3: You're selling everything on bloody market like you are the
32:11
Speaker 3: golden child for a side hustle.
32:14
Speaker 1: And I love it.
32:15
Speaker 3: But just what are some things that you've actually sacrificed
32:19
Speaker 3: to increase your deposit.
32:20
Speaker 4: I think a lot of it has been yeah, like
32:23
Speaker 4: very much lifestyle things like we only get to really
32:26
Speaker 4: boring now.
32:27
Speaker 2: I honestly were not for your takeout once a week.
32:30
Speaker 1: You know.
32:31
Speaker 4: I talk a lot about being circular, so like I like,
32:33
Speaker 4: I still want to buy new clothes, but if I
32:35
Speaker 4: want to buy a new clothes, that's how old ones.
32:36
Speaker 4: So it's I'm not necessarily spending more money. Shopping second
32:40
Speaker 4: hand is such a big thing, Like I can do
32:42
Speaker 4: things more affordably, so like, yes, I'm giving up that
32:45
Speaker 4: instantaneous culture of going in and buying the newest, latest whatever,
32:49
Speaker 4: but I think it's maybe a much more conscious consumer.
32:53
Speaker 4: Also when we've had to make adjustments for cost of living.
32:56
Speaker 4: You know, I have reduced the amount of money that
32:58
Speaker 4: I invest which I don't love. But with money going
33:02
Speaker 4: not as far these days, you kind of have to
33:05
Speaker 4: pick something to prioritize them. For me, right now, that
33:07
Speaker 4: has been my house deposit. I'm still investing, but I'm
33:10
Speaker 4: not investing as much as I used to, And like, yeah,
33:13
Speaker 4: that does suck. Honestly, There's no two ways it comes
33:15
Speaker 4: into strategy, right, That's what sacrifice is.
33:18
Speaker 2: Yeah, exactly, And you would have had to weigh up.
33:20
Speaker 3: Okay, cool, Like I could still invest the same amount
33:23
Speaker 3: into my investments, but it's just going to take.
33:25
Speaker 2: Me a bit longer to buy a house.
33:28
Speaker 3: Or I could flip it around and sacrifice my investments
33:31
Speaker 3: for now and still be able to buy on my timeline.
33:34
Speaker 2: And that's more important to you.
33:35
Speaker 3: Yeah, And strategy isn't just about what's best quote on paper,
33:39
Speaker 3: but also.
33:40
Speaker 2: Like what do you want? What do you want to achieve?
33:42
Speaker 3: What do you want your lifestyle to look like? And
33:44
Speaker 3: you've made decisions based on that, and I think that
33:47
Speaker 3: that's the most important thing.
33:48
Speaker 2: The segway of or segways.
33:49
Speaker 4: May I just say something people ask us a lot
33:51
Speaker 4: when we're talking about saving up your.
33:53
Speaker 2: House deposit, is should I invest my house deposit?
33:56
Speaker 3: Oh?
33:57
Speaker 2: That's it, that's it, that's the end of the show.
33:59
Speaker 2: Do not in there's your house to posit?
34:01
Speaker 4: Why?
34:02
Speaker 3: Because you don't know what the market is doing, and
34:05
Speaker 3: we want to make sure that we are investing for
34:07
Speaker 3: the long term. Like I am not a penny stock trader.
34:11
Speaker 3: I am not somebody who invests in things because I'm
34:14
Speaker 3: hoping it increases by one hundred percent in one year,
34:17
Speaker 3: like low and slow, like I want to be reach AF.
34:21
Speaker 3: I don't think that's a secret, do we all exactly?
34:24
Speaker 3: But like my plan is going to work because it's
34:27
Speaker 3: low and slow consistently over the long term. I'm investing
34:31
Speaker 3: into some relatively boring things. You guys know, most of
34:34
Speaker 3: my shares are in ETFs and I'm picking really boring
34:38
Speaker 3: managed funds. But y'll my performance over the last ten
34:42
Speaker 3: years has been more than twenty percent because of that,
34:45
Speaker 3: and that's not actually reflective of the market. That's just
34:48
Speaker 3: a reflective of my personal portfolio. But it means and
34:52
Speaker 3: because the average rate of return of the Australian share
34:55
Speaker 3: market over the last thirty years is sitting at about
34:58
Speaker 3: nine percent, and all time it's sitting at about eleven percent.
35:01
Speaker 3: But I think it is so important because over that
35:05
Speaker 3: time my share portfolio has gone down and if I
35:08
Speaker 3: had plans to purchase that year, I'm sorry, I wouldn't
35:12
Speaker 3: have been able to because my portfolio would have been
35:14
Speaker 3: down by eleven percent. Yeah, and I've therefore got eleven
35:17
Speaker 3: percent less as a deposit, And so should you invest
35:20
Speaker 3: your deposit.
35:21
Speaker 4: No.
35:21
Speaker 3: That's why we recommend and talk to you about high
35:24
Speaker 3: interest savings accounts. Because you're usually not saving a house
35:27
Speaker 3: deposit for more than ten years. Yeah, all right, Jess,
35:30
Speaker 3: I feel like that's probably a very good place to
35:32
Speaker 3: leave it. Hopefully this chat has made buying a property
35:36
Speaker 3: feel a little bit more within reachi And even if
35:38
Speaker 3: you're doing it solo, my friends, you're not alone. We
35:41
Speaker 3: are right here cheering you on and if you want
35:44
Speaker 3: a little bit more support. As it turns out, this
35:47
Speaker 3: is literally my job, day in, day out. So if
35:50
Speaker 3: if you're meaning to talk to a mortgage broker and
35:52
Speaker 3: you want one that's basically like Jess and I are
35:54
Speaker 3: bestie on your team. I will put all the information
35:57
Speaker 3: to my business seller money in the show notes.
36:00
Speaker 2: But yes, thanks for doing this little property episode with me.
36:03
Speaker 2: It's been good any time. Thanks for having me.
36:06
Speaker 3: And guys, if you loved this episode, please make sure
36:09
Speaker 3: that you follow the show, leave us a review, and
36:12
Speaker 3: share it with somebody else who's dreaming of getting into
36:15
Speaker 3: the property market. And if you want more episodes just
36:18
Speaker 3: like this, let us know in the comments, because guys,
36:20
Speaker 3: we are always watching and we are always listening. Have
36:23
Speaker 3: a good week, guys, Bye bye. Did buy shared on
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36:35
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36:48
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