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Know Your Numbers: The Post-Budget Portfolio Review Every Investor Needs · The Follio Property Podcast

• 0:00
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• 0:56
  What's your number one advice to an investor post-budget? The most important thing, if you do nothing else and utilize no other feature, it's purely just knowing your numbers. If you're not managing that portfolio correctly, you're driving blind. And here is a tool to manage your portfolio and let you stress test your exact financial situation before you invest.
• 1:15
  You're listening to the Folio Property Podcast. I'm Rhys Bettle and I'm here each week with my co-host Lachlan De La Hunty. Lachlan, an interesting episode today. I think this one's going to go for our regular listeners. We love to do Q&As every month or so just to go back to a lot of the questions that we don't get to answer on a day-to-day. So we'll be touching on that today, but something we're really excited about and I'm sure our loyal listeners have heard us talking about this for the last 12 months is our Property Portal PropStack.
• 1:40
  It's EOS. We've been talking about it for a long time. And I know Trent Fleskin's one of our regular guests has been calling me weekly for an update because he wants this personally. And finally, PropStack is here to help you and our listeners to manage their portfolio.
• 1:54
  Well, before we get into it, let's explain what PropSack is and what drew you to sort of developing a software like this. It's been now in the making for well over 12 months. But like I said, in one of our earliest podcasts, it's one thing to accumulate properties and try to go out there and build a portfolio. But if you're not managing that portfolio correctly, you're driving blind. And I got a real wake up call in my late 20s when I got overexposed to debt.
• 2:18
  And I didn't understand my cash buffers, my debt to incomes, my LVRs, all the critical things that we need to analyze to make sure that we've got the right amount of exposure and also got the right asset allocation in our portfolio. I got overexposed and had to sell some things and it got quite, you know, for a period of time it was in a, I wouldn't say financial distress, but I was going down that path because I didn't know my numbers. And I was working off a spreadsheet and most of our listeners, I'm sure you've got an Excel spreadsheet, you've got numbers everywhere. You just can't keep track of it.
• 2:48
  Free for users, I really do. This is not a spruik. This is not something we're going to be charging for. This is to help people manage their portfolios better. And if you don't know your numbers, then you shouldn't be investing because you are going in blind. So this is for those who either have a portfolio or want to build out a portfolio, be able to test a model to see what's going to work for your situation. I think that's really important because we know every portfolio is very different, come in many shapes and forms. Some have performed better than others, but knowing your numbers and having to be able
• 3:15
  be able to see that in a way that tracks all your numbers very clearly and visually will make you, as an investor, make better decisions.
• 3:24
  I think there's probably, from a PropStack perspective, there's a load of core functions that we've been working on for the last 12 months and getting feedback from industry experts like Trent Fleskins has been really good, also our current clients, yourself with your own portfolio. We'd love more comments, so if you've got any feedback after this episode, please leave the feedback in the comments, what you'd like to see or what you've liked that we've talked about on the episode. But in terms of the functions of PropStack, I think the three key areas...
• 3:52
  that a client would get advantage to with this is tracking their portfolio, which you're going to go through. Our market research that you would hear us talking about, those that have signed up to our newsletter would see our monthly investment reports that's coming from the data from PropStack. And the third component is those that are actively looking to invest. We have a marketplace function there where there's off-market opportunities.
• 4:12
  You're 100% right, Rhys. So many different features, but certainly the portfolio feature for me is fundamentally critical for anyone that's got a property or looking to start a portfolio. But yeah, you can see and track the research that I look out to make key decisions for our clients and the listeners and my personal portfolio. So-
• 4:29
  I'm pushing to make this free for users. I know that comes with a bit of hesitation from you, Rhys, and certainly our other business partners. But if, like I say on this podcast, we can't reach everyone at Folio. We don't have the capacity and not everyone wants to catch up in person or to be sold to, which I completely respect and understand. I'm certainly one of those people where if we can give someone a tool to be able to do it themselves, I think this is a fantastic way that they can.
• 4:56
  We kickstart Lachlan. You're going to bring up an example case that we've got that we've been working on. For those that are interested, and I'm sure you'll be continuing to listen, we want 100 people on our pilot. So there's going to be a link in YouTube and Spotify to sign up to that wait list. Be first in, first served. But yeah, first 100 users, we're going to run out of pilot as soon as possible. Yeah, so please get on there and you will get full free access to PropStack, which is the baby that now I spend way too much time on.
• 5:25
  All right, let's kick start. We've got a test case here. His name's Fred, Fred Test. Lachlan, if you want to pull up his dashboard and talk there, those that are listening, right, this is, I'll try my best to explain what you're doing. But really, if you can get on YouTube or you've got Spotify video, it's worth getting this up. But yeah, Lachlan, talk us through Fred here. You've got his dashboard up at the moment.
• 5:44
  So yeah, the key features of PropStack, obviously you've got a dashboard which is going to give you high level information on your portfolio, what you currently have in your portfolio and your exposure both geographically but also your debt to equity and your equity gains over a period of time. So how your portfolio has been performing and this is up to date. This is going to be live race where you're going to get every two weeks, you can update evaluations across your portfolio so you can see which direction is it going up, backwards or sideways. That's what you want to know. How am I going? Am I turning in the right direction?
• 6:14
  Yes, you're in property for the long term, so what happens over a fortnight or a month or two months doesn't necessarily mean you're going to make decisions on the basis of that. But it's good to know. It's good to have a pulse check. We track data, understand markets. We want our clients to have the same amount of data that we get access to. It's a high level. You've got your dashboard.
• 6:33
  portfolio, research and marketplace. So this Jane and John, so when we go into the portfolio, you've got Jane and John here. You can see here their portfolio, just a snapshot of where they're sitting in terms of their portfolio projection. You adjust for obviously CPI because you need to take into account inflation.
• 6:51
  And this is showing where Jane and John are going to land when they get to retirement. So based on the assets they've got in their portfolio, they've currently got four assets, really blue chip assets across both Victoria and Western Australia here. You're probably in place for residence and three investment properties. You can see here and track their projection. If they do absolutely nothing else besides what they've got, where they're going to land when they retire by June 54. So you can really start to net out...
• 7:17
  and see where my portfolio is going to get me if I do absolutely nothing. But then you can start to play with this and add properties to your portfolio to see how you can change what retirement looks for you. So it's plugging in different asset types, different yielding assets. And then here on the right, Reesh, you can see what I see is the most critical fundamental data sets you need to be tracking in your portfolio.
• 7:40
  These are your non-negotiables, and that's why I'm really clear on your portfolio. What does that look like? I want to know the value of my portfolio. This is what everyone talks about. All the spruikers around Australia will tell you how much their portfolio is worth. That's not as important as my equity position. That's my net worth. You have the biggest portfolio in the world, but if you've got 100% debt on it, it's worth nothing. So equity position.
• 8:00
  What's my cash flow annually? And obviously look at the tax implications of that, but then you can start to risk profile yourself. Okay, well I know in this particular situation, got negative 88K per year in cash flow. Jeez, that's got up a little bit. Last year it was only 65K, obviously I've added that property. If Jane is to get pregnant and is off work, can we afford that as a family? Jeez, maybe we'll hold back on that next investment property.
• 8:26
  Or, okay, we need to increase the yields on these properties, or we need to divest one of these to make sure that we're not over leveraged. Then we're looking at our cash to debt, ideally north of 10%. Debt to income, you can see there at 4.7, there is still some capacity. So what borrowing do I have in my portfolio? Loan to value and total debt. So we have some real high level stats here, which is important.
• 8:47
  It's a really good time for those and we've been inundated with inquiries from our current clients, people from the podcast. Post-budget, it's the most important time to start reviewing your portfolio and knowing your numbers because there is lots of opportunities out there, but you've just got to make sure you're comfortable from especially a cash-burner perspective now with not the benefits of negative gearing, if that was in the personal name that you were trying to purchase these assets. So it's a brilliant tool to understand where you currently are right now and do you have capacity to go again.
• 9:16
  Yeah, and that's the key. Before you do anything else, know your numbers. And with PropStack, you can add in hypothetical properties, either through our marketplace app or put in your own potential properties to see what it's going to do to your debt to income, to see what it's going to do to your cash to debt. How does it impact you on your retirement journey? So you can play with
• 9:38
  In reality, before you go out into the real world, you can play with what's going to be the right asset for you and your specific situation. I think that's really important because what's right for you, Rhys, is different for what's right with me. And I think people fail to see that in real estate when we talk about it on this property podcast. Not one strategy fits all. There's multiple strategies. Here's you can talk through those strategies and work through those strategies based on your income, your goals, your objectives. And...
• 10:03
  assets that will fit with that portfolio. So clicking through, you can see what's in your portfolio. Obviously, you can see the capital growth since purchase, compounding growth, and you can start to look at the projections of that based on the long-term compounding growth rate, updated valuations, et cetera. As we click back to your portfolio, you can also exclude your home, include your home, adjust for KPI.
• 10:25
  We're not going to go into all the detail here today. Moving on to what I think is super important for those that want to understand the data as much as we do, Rhys, is our research. This is giving users the same research access to make decisions based on what markets we're investing in Australia.
• 10:43
  So here we are looking at a market such as Perth. You can categorize that market based on supply and demand indicators, lending or credit, affordability. We talk about affordability. All this data here is on our PropStack portal and it tells you where we see as a default, whether it's positive or negative for investors. And there's never going to be a perfect market. That's why you don't see every data set lighting up green in terms of positive because there is some negatives. But if I was to click through here, you can see...
• 11:11
  Population growth for Perth, as you can see here, it's far above its long-term growth trajections. So typically a balanced market for population growth for Perth sits at about 1.5%. Now currently at 3.2%, it's showing it's very strong and a very positive data set for investors. So even for non-sophisticated investors, you can still get a lot of money
• 11:33
  get some really good use out of these data trends. Those that are more sophisticated, you're gonna love the DIY charts because this is really where I spend all my time, comparing markets within markets, right? So if I pull it up here, this is where I start to overlay and start to compare at various series. So here we're looking at say, a Melbourne market, median house price, we might look at that and compare that to a market like Brisbane to see what they've done over the short term, long term and medium. We'll bring that back to 25 years.
• 12:01
  you can start to see out, okay, what are the correlations happening between different markets? And that's across all the same data sets, affordability index, population growth, lending data, vacancy rates. So this really starts to gamify and for people that love data like me, Rhys, which may not be everyone, they can start to play with this.
• 12:22
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• 13:21
  This has always been our favourite feature. We've been using PropStack internally for the last 12 months. We've obviously been decking it out so there was a consumable version, especially for our audience to play with. But from a data perspective, we're talking about this data on our monthly updates, we're talking about this data on our podcast, and we just felt it was probably the best time now to start to let the end consumer...
• 13:41
  access that data. But it can look confusing, right? You did say here, this next level isn't for everyone, right? You've got to understand how it works. So the first page that you did show there was a great summary, shows you if it's positive or negative. There will be tutorials that we'll have coming out as well for those that do want to get into the weeds and really understand it where we explain it. But I think that, you know, from our perspective, we're only going to include more data as PropStack progresses.
• 14:03
  Yeah, like I said, for our beta version, we want to keep it as user-friendly as possible. We don't want to overcomplicate it, so we're not going to unlock all the features straight off the bat. So there's probably 60% access for users to start with. And like I said, once you start to get through it and understand it, you'll start to unlock various features. And for those that love the runway data in terms of where interest rates are at, this is, again, you can start to track this based on where you personally believe interest rates to land. This is our runway data at 624 at the moment.
• 14:32
  6.24, you can start to see where we see the runway in both houses and units across the market. So market trends, runway data, and do-it-yourself charts. Like I said, our listeners, I think, will have a field day with this because you can really start to form some opinions and views based on this data.
• 14:51
  Beautiful. Let's move on to the last feature of PropStack, the marketplace, one we're both pretty excited about. Talk us through how the marketplace and who's going to find value in this marketplace. Yeah. So firstly, looking through it, let's just pull out an example. Here's one in Coburg, Victoria. You can really look at these assets. The marketplace is there for people, consumers, listeners to go on there and potentially put on hold or request a review for the market
• 15:19
  Whoever the buyer's agent and property advisor has showcased that. And these are buyer's agents all around Australia, not just our business at Folio. And we encourage those that are listening that are buyer's agents or advisors or in the property space that get access to off-market quality investment opportunities to reach out to be a vendor on PropStack.
• 15:38
  These are going to be verified and approved by Propstack, so we're not gonna become a spruik of house, it's not gonna be anything that we don't see. House and land packages in the outer suburbs. No, there won't be any of that. There won't be high-rise apartments, there won't be anything on busy roads. So there will be a criteria that needs to be met. One of those being it needs to be off market, and you'll be likely dealing with a buyer's agent on the other end, courage selling agents to also upload that. So it's creating an investment platform where people can get access to a good quality stock,
• 16:05
  and understand the numbers behind those assets. So this is a particular example here, it's the top price, what the gross yield is going to be, the weekly income, what the net yield is going to be, what the capital growth of the suburb, the performance of it, the grading of the suburb. So again, this is all objective data that the prop stack produces to give our
• 16:24
  users, which is the listeners, as much information as they can possibly have to make an informed decision. And not every asset on PropStack Marketplace will be an asset for you, but you can have a play with it. You can add it to your portfolio, scenario, plan it. What does it look like if I added this CoBird asset to my portfolio? Can I afford it? What does it look like? What does it do to my ...
• 16:44
  What's the cash span going to be? Exactly. And that's really important. So you can look at the acquisition figures. You can see the ongoing costs. You can see what it's going to cost to borrow and potentially hold. And obviously the cash flow here, you can see, Rhys, when does it actually go into positive territory? So you can start to look at different assets, whether they're units, whether they're semi-detached houses, whether they're established homes. You can start to see what's going to be the right asset type.
• 17:09
  for your portfolio and really have a play with it. If you do like it, there's the ability to put them on hold. You'll be in contact with a supplier, and that might be a buyer's agent, selling agent, whoever that is, and then you link up and you'll be dealing directly with them to navigate you through that deal, which in all intents and purposes will likely not be folio, but a lot of opportunities that we come across for Ease will be showcased on the marketplace. So it'd just be interesting. Like I said, another really cool feature that I think our listenership will get really good functionality out of.
• 17:38
  Yeah, I think, look, there's a place for everyone with this system, and that's probably where we wanted to see it, where, you know, if you were happy with your current portfolio, you're maxed out, been able to regularly track your portfolio. I think what you and me have always discussed over the last 12 months is what we loved about share or crypto accounts.
• 17:54
  betting accounts to a certain example, you can actually track your wins on a daily basis or your losses in a lot of instances, but you can see your portfolio go up. So for those that maybe are just passive investors and are happy with their current portfolio, you can regularly check in with your portfolio, see how that's performing, check out our market research data if you're a data nerd like you and me, and those that actually are proactive and wanting to go again.
• 18:18
  having that marketplace with the off-market opportunities where it goes through the prop stack due diligence in terms of investment-grade stock. And that's it. It's not a marketplace for Spruikers. It's the opposite of that. It'll be verified, so don't expect thousands of properties when you get onto the marketplace. We really want to keep a tight noose around what's approved, and we'll have feedback along the way, and we're going to track feedback and through client experiences. Obviously, we can't fully control
• 18:43
  suppliers to the full extent, but we will have a rating system to be able to make sure that inequality operators are registered through PropStack. But for me, the most important thing, if you do nothing else and utilize no other feature, it's purely just knowing your numbers.
• 18:58
  Upload all your details into there so you can really see before you make any more decisions where you're at. It's a real pulse check. And most of this will update automatically for the manual inputs at the start. It will then start to, every time you check in onto it, you'll be able to see exactly where you're at given the interest rate environment, given the change in meeting house prices in that location. You'll start to see if you're going into murky territory where it should be concerning or on the opposite of that, if there's more capacity to potentially continue on your
• 19:28
  wealth creation journey beautifully said lachlan so uh those like we said mentioned earlier in the episode those that are interested there is going to be you know a pilot version for the first 100 users link's going to be the description fill it out um those that don't make the first 100 we'll put you on a waiting list for for when we're ready to to launch um we're super excited though a lot of our attention is going on prop stack so um you know we'd like to hope the pilot doesn't go too long and we've got a version that's uh fit for all of our podcast community
• 19:54
  Yeah, that's the whole point of it, right, is to make sure that we can provide something that really helps our listeners because we can't help everyone. All right, Lachlan, down to the Q&A now. There's a lot of talk about increased rates throughout the year from all the big four. We've seen the inflation data on unemployment rate suggest what we've just seen where they've held the rates. We've actually had an outcome out and say there's going to be decreases this year. What's your thoughts on the rates for the rest of the year?
• 20:16
  reinforces that absolutely no one has any idea of what's going to happen with rates because as little as two weeks ago, they were forecasting three rate rises. Now, multiple banks are coming out and forecasting potentially some cutting as early as next year. What does this do to sentiment? And this is the thing, when markets are soft,
• 20:33
  It's purely around sentiment and it can be so fickle. It can change for the worst and it can change for the better very, very quickly. And I think the pause is probably the confidence the market needed post-budget. There's been a lot of negativity. I spoke about May. You had a rate rise. You had a...
• 20:49
  very anti-property budget and conflict in the Middle East that was unsettling. Really difficult month. And the echoing in that in the media in terms of negative sentiment was probably some of the worst I've seen since really early days of COVID.
• 21:04
  I think this pause just highlights how quickly things can change, and I think there's a bit more confidence around cost of money now not getting more expensive. If anything, it may potentially ease before any more ride hikes, which I'm not completely sold on that. I think we may have seen, and I said this in a podcast a few weeks ago, that I don't think there'll be any more ride hikes in 2026, which was a bold prediction.
• 21:29
  Now it's probably not as bold as it would have appeared at the time. First question coming from Chris, ignore cash flow, are established homes still the best asset? For the everyday punner, absolutely. Your bricks and mortar established home on a single title with owner-occupied appeal is still a class when it comes to property investing.
• 21:51
  However, the landscape has changed and you can't ignore cash flow and you can't ignore the signals in the market. What I mean by that is tracking research to see is there other opportunities in the market. We got a lot of criticism a few weeks ago about speaking about units rates and units don't go up. Melbourne units haven't done anything. Sydney units have done anything. The best –
• 22:13
  performing assets in Australia for the last three years have been Brisbane and Perth units, well over 60% growth in three years. So you can never say never. But back to the question, absolutely first class, ignore cash flow. For capital growth, it is own occupier, single title, established properties. Next question, I've actually had some people reach out to me with a very similar question. It comes from Mitch. It's still a good idea to rent and purchase an investment property that you'll eventually move into as a PPOR.
• 22:43
  So, Rhys, what you're saying is essentially what I did. I was landlocking locations, but you're next home down the track, and you might not move into it for three or four years. That's the question? Correct.
• 22:53
  very difficult to do it now. The reason you were doing that, the reason I was doing that, was because I could lock in the location and my upgrader asset, but rent in the short term, knowing I was going to get all the negative gearing benefit, because those particular assets typically are cash flow heavy. And if you don't get a negative gearing benefit, very, very difficult to do that. I would be ideally buying your property to move into and try to do that. I suppose the runway on that has shortened significantly. Like I said, it's pretty much the death of the rent investor.
• 23:21
  Very, very difficult to do it now. So you've got to change strategy. And strategy is now for these guys chasing assets that won't completely destroy their serviceability or cash flow. And that's probably looking at different asset types or if they are going to rent best, they need to look at assets that aren't going to be significantly negatively geared.
• 23:42
  Okay, Lachlan, this one comes from Jess from our Spotify community. What actually counts as regional? Is 80 kilometres from a major city with farming lamb and new estates regional? And does 125% growth over five years in these areas create the same risk as remote regionals?
• 23:58
  To answer your question, we classify these as transportable regionals, right? So they've got access, a clear, concise access to a major capital city. So from what you're telling me there, you've got a regional area that's within 80 Ks of a major capital city. Then as we spoke about on the podcast, we summarise them as sort of metropolitan regionals.
• 24:20
  That is not the same as buying in a remote regional area where it's subject to typically long commutes to get to a capital city. So yes, some of these regionals do have farmland. If you look at Geelong as a Victorian example, it would be 80 kilometres from Melbourne CPD. On the outskirts of Geelong, there is farming land, but we see that very much as a metropolitan regional. It has got a transport route directly to Melbourne via train and a freeway, and a lot of
• 24:48
  People in Geelong actually work in Melbourne and therefore have Melbourne incomes, which therefore puts pressure on house prices. So you're likely to see house prices improve significantly in those areas compared to an area like Gladstone, where it's reliant solely on its localised economy and is not within close proximity to a major capital city.
• 25:09
  Okay, Lachlan, we actually, off the back of the episode we did with Josh Coleman, when we did the Queensland market update. It copped a lot of heat. I think there's pitchforks out for Josh. A lot of positive comments on Josh, I think. We really enjoyed the chat. Josh will be a regular on the podcast moving forward. Gold Coast was the one that definitely raised a few eyebrows. I actually had a loyal listener email us, actually. He offered a...
• 25:31
  a beer and a steak as well. I don't know if it was just you or I got the invite too, so thanks for that. He wanted to challenge us on our views on Gold Coast. And look, there wasn't any data to really back it up. It was probably a bit more of an opinion post, but he's a regular visitor to Gold Coast from Sydney. He was arguing that our thoughts on the Gold Coast market were maybe more targeted at the high rises. And actually, from a growth and a stability standpoint, Gold Coast is one of the strongest markets with a lot of the areas outside that.
• 25:58
  being heavily populated by interstate migration, specifically from Sydney. So this particular listener did say, you know, come back in five, ten years and you'll be reversing your words. What's your opinion on that? Look, he's very entitled to his opinion. We always like to have opinions that's backed up by data. That's where my views come from, but I respect it and appreciate it. And I somewhat agree that you can't taint any market with one brush. And maybe that was probably what was delivered poorly by us, Rhys, is that we tainted...
• 26:28
  Gold Coast is a potentially market that's at its peak. And maybe we do that when we speak more generally. And sorry for listeners, if we do that, we don't go into every specific suburb or region. And we know no matter what market, you look at a market like Sydney right now, which...
• 26:43
  high levels falling off a cliff. Or Melbourne, for instance, the data and the news headlines are saying that prices are falling. Well, that's not the truth. On the ground, there's sub-markets that have seen close to 10% growth this year. There's areas such as the lifestyle markets where they've been hit with land tax and the budget's really crippled those holiday down the peninsula, et cetera.
• 27:04
  you know, come off potentially 30%, 40%. So you can't, and the same is going to be true for Gold Coast race. There's going to be what I think we were referring to specifically is that really high density, high volume, high speculation type development that we've seen history suggested that Gold Coast race,
• 27:23
  has been more volatile. You can't deny that as a listener. You cannot deny, like me saying here that Perth is less volatile than Adelaide or Brisbane. I'll be lying to the audience. Perth is more of a volatile market. It's shown its hands over the last 30 or 40 years. Gold Coast is a more volatile market. It's shown its hand over the last 40 or 50 years. And
• 27:42
  If you follow history, what we'll show is in these areas of mass supply, which we're seeing in parts of Gold Coast now, a lot of development approvals that spike through the roof of higher density accommodation, it creates red flags for me. And it's absolutely established houses that are dominated by own occupiers, I think will be safeguarded. I think there's pockets within pockets that lend themselves to some of that Sydney money you spoke about. So it'd be unfair to taint any market with the same brush, and I completely agree and respect that.
• 28:10
  but understand that Josh's concerns were around some of the perceived overvaluations of certain segments of those markets. We'll make sure when we get Josh on in a month or so's time, and I'll save some of the comments for him, and we'll get him to address and do a quick-fire Q&A, because definitely got the comments going, which was really good. Look, just a couple more. We'll wrap it up for today. We'll do another episode on Q&A. I'll go a bit more quick-fire. I've got quick-fire ones after this, but broader market. Okay, so looking at...
• 28:37
  This question, the YouTube listener comes in and says, is the whole residential market heading south until interest rates fall or there's a change of government? So what's your opinion on that? I think that's probably looking at the doom and gloom we're hearing at the moment, the whole market. And we spoke about this on the Leith Van Onselen podcast where the commentary is all on the whole of Australia is going on a decline. What's your thoughts on that, Logan?
• 28:59
  Yeah, so anyone in Sydney and Melbourne at the moment would probably feel that. Anyone in Brisbane, Adelaide or Perth would be seeing, still seeing some positive market conditions. We talked about the two-speed economy, but regardless, you don't need necessarily to see rates go up. I say, you don't necessarily need to see rates go down. The pausing event that's just taken place today, Reece, will breathe positive sentiment back into the market. It's more the perception around what's going to happen to rates than what actually rates do themselves is more powerful.
• 29:28
  So the moment that dialogue switches from there's no more rate hikes, we've hit the peak and the next decision will likely be rate cutting. Or when the banks, as we saw NAB come out and suggest that there may be some cutting in future cycles, that's enough to put the sentiment back into the green. And that can happen very, very quickly. Same with international conflict. It only takes one agreement. It only takes Donald Trump to come out and say they've reached a peace agreement.
• 29:55
  and see how the financial markets will respond and sentiment and how it improves. So as quickly sentiment can change for the negative, as quickly as it can change for the positive, you can see the push in, say, the One Nation campaign and they're going to abolish the recent reforms to negative gearing and capital gains. If that starts to get some momentum, people start to make decisions, okay, well, that whole...
• 30:14
  We don't have to worry about those changes because they're going to get thrown out as quickly as they've been put through. So all these different variables, as quickly as they can go negative, they can go positive. Equally, bad news could also be around the corner. Now, if the Middle East conflict takes off again, there's going to be more uncertainty. So as an investor, as a person who owns property, what you want to see is don't be reactive to everyone else. Because what people do, the moment there's bad news, people freeze, they don't want to buy a property, and they're naturally just like, I'm overexposed, I want to sell.
• 30:42
  Do the opposite of what the masses do. Likely when things are really, really good and there's so many tailwinds, that's when people want to start investing. It's like, no, that's not necessarily when you want to invest. That's typically when you want to take your dodgy assets off the table and sell them when sentiment's high. So in this point here where there's more uncertainty than certainty, really good buying conditions. When that pendulum shifts, that's when you're going to start to be a bit more cautious.
• 31:06
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• 31:36
  Tomorrow morning is knocking. Stock your fridge now. How about a creamy mocha frappuccino drink or a sweet vanilla? Smooth caramel maybe or a white chocolate mocha. Whichever you choose, delicious coffee awaits. Find Starbucks frappuccino drinks wherever you buy your groceries. Quickfire Lachlan, where's the best investment opportunity for a first-time investor? Melbourne units. What's the best investment strategy for a mum and dad investor looking to do their second investment purchase?
• 32:02
  Got to have consideration to cash flow, but dependent on that first asset, do they look at something with more land through development or is it a cash flow asset really going to depend on their first investment and their current exposure? Is investing in commercial now a number one strategy for an experienced investor?
• 32:19
  No, it's the same as it was pre-budget. Nothing's changed. It's got a place in a portfolio at a particular point when they've got enough equity, likely north $1.5 million, where they can buy a commercial asset at a 50% to 60% debt level.
• 32:36
  My concern with commercial rates, there's going to be a flood of people going in there buying sub one and a half million strata units, office, retail. It's going to be a bloodbath. You're going to have vacancies. Just be really careful. I think you'll see more commercial spruikers. I think you're starting to see the rising commercial buyer's agent spruikers go through the roof like you will in the house and land space. Is there any regional opportunities in Australia right now?
• 33:00
  Absolutely. Those that have got close proximity to a major capital city where the demand and supply fundamentals make for good investment opportunities. What's your number one advice to an investor post-budget? Know your numbers more than ever and know your post-budget tax outcome before you make your next move. Is Perth unaffordable?
• 33:25
  No, Rhys, an interest rate of 6.24%. It has 18% left in houses and 46% in units. So to say it's reached its affordability ceiling would be a lie. Is Sydney at the bottom of its property cycle? Not yet. I think we'll see the bottom of the Sydney cycle in 2026. I just don't think it's yet.
• 33:45
  Welcome to Big Podcasts today. Appreciate it. Might not be everyone listening to us talk about PropStack, but we're super excited about it. If you did listen to it, hopefully we explained it well enough. Go back and watch the video, and then we've obviously gone through some quick fire Q&A there as well. Yep. If you want to be a part of it, hit the link because we want to get the pilot in your hands so you can tell us if you love it or hate it. You've been listening to the Folio Property Podcasts.
• 34:15
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