Latest / The Curve / How Soph made $122,000 in 6 weeks!

Transcript

How Soph made $122,000 in 6 weeks! · The Curve

0:00
Welcome to our brand new property podcast.
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This has been in the works for a long time and we're so excited to finally be able to
0:12
speak to you.
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Regularly, every month, we're going to have a property podcast when we talk about home
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ownership, property investing, and that's whether you're trying to buy your first home,
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you're trying to buy your second home, maybe you're wanting to buy them.
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We spent property and that is exactly why we're proud to be partnering with BNZ because
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they get it, they understand that there's no two situations that are the same.
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And having a BNZ home loan partner in your corner, you'll always have the expert advice
0:39
and tools that can help you make it happen.
0:42
But thank you so much BNZ for helping empower this property podcast.
0:52
Yes, so if you're all right.
0:53
Well, I know, I just, I feel very, what's the word when you're feeling quietly confident,
0:58
not that, like I'm feeling smug, I'm feeling smug because I plan to this podcast.
1:03
And I feel very naked without my laptop.
1:05
Yeah, yeah, yeah.
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It normally hides behind a computer and all her research, but she has no idea what the
1:10
super-subsides about.
1:10
Oh, it's kind of a story about life really hiding behind my laptop.
1:13
It's kind of a bit of a, it's like, you're fine.
1:15
Did a new niece say something to you about that?
1:18
I know.
1:19
Why are you always on your laptop?
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And honestly, was like a step to the heart.
1:24
I was like, I'm not.
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What do you mean I can play with you?
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I've got plenty of time.
1:27
I've got to get out of here.
1:27
Yeah, yeah, yeah, when a kid calls you out, I'm going to call my god.
1:30
It's like, when kids ask you why you would make up?
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Why it's a hard one?
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I know it really is, isn't it?
1:36
Yeah, why do you look in the mirror?
1:38
Why do you, yeah, it's like, you kind of just stuff that you've done.
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You don't have answers to and you're like, wow.
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The makeup thing is really, really if and weird when you think about it.
1:49
Because an I've often thought about this, I feel like an average looking guy
1:55
would be a really hot woman.
1:57
You don't even, because they do absolutely nothing to their skin to their hair.
2:01
Was it you that was showing me the bun?
2:03
Meme?
2:04
Oh, yeah, yeah.
2:05
What was that where it was that?
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And it was like, when a guy uses...
2:09
Oh no, it was two burger buns, one that looks disheveled and disgusting.
2:13
And frankly, it wouldn't touch your crumpled yet.
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Like, it's completely deflated and then one.
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Almost like a brioche plump.
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Almost plastic looking bun top.
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And it's like, the dishevel one is talking about me after my eight step skin care routine.
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And then it's like, my boyfriend's face after using the same soap he uses on his balls on his face.
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It's so true.
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It's not, it's true.
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It's not one fair.
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Anyway, the purpose of this podcast is I have a surprise view.
2:44
So, so are your surprises.
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Always.
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You're really skeptical.
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You're like the queen of surprises.
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I'm sorry.
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The last surprise I was dressed as a giant green blob of inflation.
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So, can you see where I'm coming from?
2:57
Yeah, that's fair, that's fair.
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But, that was fun and funny.
3:01
That was funny.
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You know?
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Like, you didn't look back on that surprise and think
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that was waste of my time.
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I thought finance bros could see me now.
3:10
Yes, that's that's valid.
3:12
Okay, so this is a secret slash surprise
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that I've been hanging on to for actually an embarrassing amount of time.
3:19
You got a good job.
3:20
Oh my god, does it look like I had a boob job?
3:22
No, this is just, I'm just guessing.
3:24
No, I haven't.
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I haven't.
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I don't think I ever will get a boob job.
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I'm actually, I love having small boobs.
3:29
Oh yeah.
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So happy with them.
3:31
No, this is nothing to do with my appearance.
3:33
Okay.
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Do you trust me enough to close your eyes for like two seconds?
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As long as you don't touch me.
3:39
I won't, I promise.
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But you do need to put your hand out.
3:42
Yeah, yeah.
3:43
Okay, close your eyes.
3:45
Close your eyes.
3:47
Close your eyes.
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Oh my god, trust me.
3:50
I'm going to put like a snake on your hand.
3:52
I know, that's what I'm asking you know.
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Okay, eyes closed, eyes closed, eyes closed.
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Do you promise you won't open?
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I promise, can I, like, will it hurt?
4:00
No, no, no, no.
4:02
And you're actually probably going to be quite confused.
4:08
Okay, open your eyes.
4:09
Do you have any idea what this prize is?
4:11
You've got a new key ring.
4:13
I did actually.
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How good is it?
4:15
So this is, this is a new carabiner.
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I found the weekend to be nice and organized.
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Can I, I'm going to take one key off.
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That's why I'm doing this.
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Maybe use your incredibly intelligent brain.
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You had a weekend of organization.
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And you put, I did actually.
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That is exactly what I have earned.
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I've got two sets of keys now for the office.
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I've got two swipes.
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Fanny on that doesn't know me.
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I lose my shirt.
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Literally constantly.
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You need to look at it.
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You bought out office.
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You bought a house.
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Oh my god.
4:54
Oh my god.
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Good luck.
5:02
Okay, so I, this is it.
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You bought out office.
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I was like, this looks like your office.
5:06
Okay, so I, okay, so I bought a house.
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Oh my gosh.
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Full on proper.
5:13
It's not a tent.
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It's not a, it's not a tent.
5:15
Yeah, so this is, this happened like actually.
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Oh my god.
5:19
How do you feel to be in debt to rivals?
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I don't know how to explain it.
5:22
I, I, um, so for context, this happened honestly.
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I was like a couple of months.
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Got to have been able to tell you.
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I know, which is in itself so bizarre.
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Because I've told, like, I'm pretty, I told,
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I've been able to see Emily.
5:34
Emily's not for ages.
5:35
She's like, so if you, if you told, but yeah, I'm like,
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oh my god.
5:39
Because I wanted to be in the same place to tell you.
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Obviously, I was in New Zealand and I was like, anyway,
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that's so quick as well, babe.
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Like usually, I was like, I was looking for ages.
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So it happened so quickly.
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And I think that was it.
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I was like, quite shocked.
5:53
So basically what happened was that she let's rewind
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for anyone that hasn't listened to our first, like kind of,
6:00
so we did a property series in February.
6:03
And this was when I was going through my
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mortgage approval process.
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And at this point in time, I was frustrated.
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I was quite, actually, quite close to giving up at all, honestly,
6:15
because it was like, there was so many hurdles
6:17
when it came to the mortgage.
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I just, I felt like...
6:22
Setback, after setback, and it's just like, it was,
6:25
it was, it was, it was, it was even worth my time.
6:26
Yeah, yeah, and I think I was like,
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there was so many times that I fully just would cry,
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because I was like, this is just so,
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I felt like I was trying to push through in a system
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that was just like, no, has not moved with the time.
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Like, computer sees no.
6:40
And you're like, yeah, yeah, so anyway.
6:43
So, for anyone who missed it,
6:44
this is just a little snippet of like,
6:47
what was going on at the time.
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But no, I think with my specific situation,
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I knew that I was going to have to get creative.
6:55
You know, like I knew it was going to be straight forward.
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So I was going in this morning and I was like, filming myself,
7:02
being like, going in, going to find out if I've been
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pretty approved, you know, doing a little like,
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selfie video.
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And then I was recording it and I was like,
7:11
I'm pretty sure I'll cry if I, if this doesn't actually go through,
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because I sort of feel like I've had this weird sense of like,
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no, I've done this right, you know, like I've done my research.
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I've like, really gone about it the right way.
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I've got an amazing team who have been helping me do it.
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And I know that if it's possible,
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they're going to be able to figure it out.
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Do you know what I mean?
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Anyway, so I went in and I was like, in the waiting room and I was like,
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couldn't connect to Wi-Fi, I was feeling real nervous.
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And I was sitting there like, wow, I'm actually like, quite nervous.
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Anyway, I went into the room, oh my god, I'm sorry.
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So sorry.
7:43
Oh, so sorry.
7:44
So sorry.
7:46
So sorry.
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Big breath.
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It was real overwhelming, because I went in turn like,
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big breath.
7:55
That's...
7:59
Give her a hug, Vic.
8:00
You mean, turn, it kind of reminds me of when I was going to New York.
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And my dream was to go live in New York.
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You're about me.
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And I remember saying goodbye to my parents and I had my bags packed
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and I remember leaving the airport.
8:12
Yeah.
8:19
Dude, that's my worst nightmare.
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It's just so good.
8:21
What did we go for?
8:23
What champagne is it?
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A, 2012, special.
8:27
No, it's a wonderful, full lassie from home.
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Oh my god, you got a cake!
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And a cake.
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It's fucking cake.
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Although I got this cake, the champagne everywhere.
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It just went off on its own and now everything
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is covered in champagne.
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Thank you so much.
8:43
Guys, I'm actually, can I just say?
8:45
Where is it?
8:45
What can we just go through that?
8:46
Yeah, we'll get to it and see how many bedrooms.
8:48
Yeah, yeah, don't worry.
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We'll get there, we'll get there.
8:50
I actually, this is going to sound quite self-indulgent,
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but I would like to make a toast.
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Love that.
8:55
Can I do that?
8:55
Yeah.
8:57
OK, I'm making a toast to myself.
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Don't lose that key.
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Where don't lose the key.
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LAUGHTER
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And it's a, I don't think, very often,
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we celebrate our own ones.
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And I remember, actually, in that first episode that we did,
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I was like, so many of my friends are getting married
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and doing all the life stage things
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and getting dogs and celebrating, you know,
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first and seven babies.
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And I'm not.
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And I think that it's important, actually,
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to just, like, pause and be proud, because this was
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seriously one of the hardest things, either,
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to get to a place where I had the money,
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where I could get a mortgage and, yeah, buy a fucking house.
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And I'm just, like, I'm really proud of myself.
9:44
Same.
9:45
Same here.
9:46
K-Cheers.
9:46
Cheers.
9:47
Cheers.
9:48
Cheers.
9:49
OK.
9:51
I'll tell you all the details.
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Every single stage of life is, I don't know,
9:55
it seems like it's built around couples.
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It's like, you get together and then you have an engagement party,
10:00
then you have an anniversary and you have a wedding,
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and then you have kids.
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And even buying a house is so skewed towards the couple.
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And so, to do it on your own or, like, with a relative
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or with a friend, just feels so much harder.
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So the fact that you've done that is insane,
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because sometimes it can feel like all the odds are stacked against you.
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And also, Emily's bought a house.
10:25
Oh my god, yeah.
10:26
Congratulations, everyone's got a house.
10:28
Everyone's got a house.
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You get a car and you get a car.
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It's actually so true, though, and, like,
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Emily doing it when she's 24.
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Amazing.
10:39
So, and it's such, don't you think it's just the most emotionally
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turbulent time?
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I remember for you were thinking about it for a while.
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Actually, maybe do you feel comfortable sharing your...
10:50
Yeah, yeah, yeah, yeah.
10:52
I was just, I'm in an hour and about, if it ages,
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because I am 24, and I was, yeah, buying a house with my brother.
11:01
And I kind of felt like I was living in a house
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with five of my friends in London, and I kind of felt like,
11:08
quite like a big life move.
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And so, to be doing that at 24, moving out of London,
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I was kind of like, oh, I cut myself a bit short.
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But, yeah.
11:18
But I also think, yes, it's a big decision.
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But if you do it and you're like, oh, I don't actually want to live out of London.
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You know, there's alternatives.
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You kind of just have to do it and try.
11:28
And then if you're like, I don't actually want to live there far out,
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or I don't want to rent it.
11:32
There's other options and it's kind of, yeah.
11:34
But I think that's a really good point you bring up,
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that, which is there's not enough conversation,
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which is exactly why we're doing this property podcast.
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There's not enough conversation or education or awareness
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around the different ways you can invest in property and buy houses.
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And to your point, Emily, in a society that has law and regulation
11:54
and so much retaped around this type of an investment.
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And it being all written in the favour of or four couples
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makes it so hard to even have the dream or vision
12:10
of I want to own a house or buy a house if you're not in a stable, long-term relationship.
12:14
Because you just assume to do that, you need to be in a relationship.
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And that's not the case.
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And I think, hopefully, us talking about all of our different experiences
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buying property and the different ways that you can make money through property.
12:27
Because it's an amazing investment by talking about the different ways and approaches.
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Hopefully, there's more people who think about it differently
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rather than just first home equals house I live in with my partner,
12:41
ever baby, that's how I make money.
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Because there's so many ways of doing property.
12:45
Yeah, I think it's also another thing is the kinds of reactions that you get
12:48
when you're not doing it in a couple.
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I found a lot of comments being like, are you sure you want to do this?
12:53
Like, can you really trust them?
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And it's my brother.
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And I'm sure that you do.
12:56
Did people ask you that?
12:57
Oh my god, that's so funny.
12:59
But yeah, it is.
13:00
People think it's a way bigger deal if it's not your partner, which is so strange.
13:04
Like, can you trust them and what if it goes wrong and what are you going to do
13:07
about after this amount of time?
13:08
But you could say that in a couple as well.
13:10
I don't know why we're so geared towards, oh, if you're not in a couple,
13:13
then something's not quite right.
13:15
It's like with anything though, right?
13:17
It's like when something's been done in a certain way for so long
13:19
and then someone changes the status quo.
13:21
It does it a bit differently.
13:22
You're going to say, oh, it's like even women working and not being
13:25
stay at home moms, you're going to say, oh, you're going to miss your kids
13:28
and you're going to, you know, just because I'm not doing whatever
13:31
an house has done or I'm part of the minority of the majority.
13:35
Yeah, it changes gears people because, yeah.
13:39
But the more people that do it, then the more common it becomes.
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Also, the more support, the more resources, the more education,
13:45
the more alternative funding and products that come up because, yeah.
13:50
So where is it?
13:51
I was going to say, do you want to hear about my house?
13:55
Basically what happened was I got approved in the end,
13:59
which, so I was doing it with a friend of mine.
14:02
We both had to be like equally and jointly responsible for the mortgage.
14:08
So like, you had to do half each?
14:11
No, so I had to be able to service.
14:13
So we went for a $500,000 mortgage, which is obviously quite low, to be honest,
14:18
in the scheme of what a lot of people go for from a mortgage perspective.
14:23
But because I was based over here, they could only use 70% of my income.
14:27
So you bought in New Zealand?
14:28
I bought, sorry, I bought in New Zealand, yeah, yeah, bought in New Zealand.
14:31
And the reason I bought in New Zealand was because, I don't know,
14:34
I felt like the New Zealand property market is quite unique in its returns.
14:39
And I wanted to do an investment property rather than a first home,
14:44
because obviously I'm not living in New Zealand.
14:46
Yeah.
14:47
And I also couldn't really afford to buy in the UK because...
14:50
Where you want to live and what you can afford are pretty different.
14:53
Well, yeah, like I would be buying in the middle of nowhere.
14:55
You just wouldn't be able to live where close to friends and stuff,
14:59
and so you'd have quite a different experience.
15:00
Exactly.
15:01
So I was like, okay, that's out of the question.
15:04
And I had this guy actually slide into the Instagram DMs in a very non-sleezy way.
15:13
Basically, being like my wife listens to the podcast,
15:16
and I heard that you're thinking about buying property.
15:19
And he was basically like, I have been doing the burr approach.
15:24
The buy, renovate, rent out refinance.
15:29
He was like, it's a really great approach for people who are overseas, particularly.
15:34
Who want to buy an investment property in New Zealand.
15:37
I do like kind of a full service approach.
15:39
I'd like to start to finish, help find the house, but, you know,
15:43
we'll do like a full episode with him because he's amazing.
15:46
And there's approach to properties so interesting.
15:48
It's just really interesting to learn how it all works.
15:51
But basically, I decided to do this approach.
15:55
I had a few Zoom calls with him, and I was like, he's awesome.
15:58
And I feel like he knows what he's doing.
15:59
And like, obviously it was a bit of a risk because he sort of was starting his own thing.
16:03
He'd done it a few times himself, but he was like, I'm happy to kind of do it with you
16:07
as sort of like a, I guess for him like a testimonial, right?
16:10
Because he was like wanting to start a business doing it anyway.
16:14
My friend and I, who I was going to buy with,
16:16
we were both on the same page being like cool.
16:18
This feels like a really good opportunity, let's do it.
16:21
So we got a proof of 500,000 New Zealand dollars.
16:25
And we got 250,000 pounds, but you had to service it.
16:33
Like if the person you're going in with accidentally passed away,
16:41
you would have to take responsibility of that.
16:43
Totally.
16:43
You wouldn't be able to pay, so you have to, yeah.
16:45
So therefore, you, your money, your income, your assets,
16:50
all that has to be able to cover that kind of hell.
16:52
Yeah, yeah.
16:53
So what's again, sorry, is quite weird,
16:56
because in a couple, like a romantic couple,
17:00
it's not one, one doesn't have to be able to service the entire mortgage.
17:04
Really?
17:04
No.
17:05
Yeah, look at your joint income.
17:07
You're jointing it like it's, yeah, that's all outrageous, isn't it?
17:10
So you should have just put a ring on it and gone into the bank and be like,
17:12
Hi, oh my God.
17:16
Hey, here's a girlfriend.
17:17
I think they would have been a little bit weird.
17:18
They would have crossed the line.
17:19
We promised we'd just join it to get a mortgage.
17:22
A picture of faking gauge, man.
17:25
Also, like the newspaper.
17:27
Sophie, all right, from the curve.
17:29
Pretends to be engaged.
17:30
You're not having a podcast to talk about, absolutely, everything.
17:32
You can't even do a white line.
17:34
Oh, no, I know.
17:36
Not ideal.
17:37
So yeah, we've got both got approved for the mortgage.
17:40
Tick, tick, tick, and when I say tick, tick, tick, tick,
17:42
it wasn't tick, tick, tick, tick.
17:43
It was, oh my God, you know, like it took ages.
17:46
Anyway, got there.
17:47
How do you want some?
17:48
I'm so into how much you're shoveling this cake
17:50
into your neck.
17:51
It's just like it's lunchtime for anyone to tell you.
17:53
Yeah, yeah.
17:53
So then maybe a week after we were approved.
18:00
So this was months ago.
18:03
Do you know how hard it was to keep the secret from you, by the way?
18:06
It was.
18:07
I'm quite, yeah, I'm quite shocked at how much time has gone by.
18:12
I know.
18:12
And here I think she's just going to open homes.
18:14
I'm like, it takes a while, like quite a while.
18:16
I know, like thick with her emotional support being like,
18:18
don't worry about it.
18:19
It takes ages.
18:20
Yeah.
18:21
Meanwhile, I'm like, oh, I want to hold.
18:24
It's like someone being pregnant for three months.
18:27
And not being able to tell anyone.
18:28
Oh, yeah.
18:29
Yeah.
18:30
Don't worry, babe, it'll happen.
18:31
It would totally happen when it's time's right.
18:33
I know.
18:34
But the worst part is that I had told a few people.
18:36
So I was like, oh, I don't.
18:38
I was so worried it was going to come back to you.
18:40
Anyway, basically what happened was about a week after we
18:43
were approved, Pete, aka, my amazing property theory.
18:48
Godfather, we'll go with that.
18:50
Fearing our father.
18:51
He sent us a link and was like, I found this really great property.
18:56
It kind of takes all the boxes in terms of the investment approach
18:59
that we're going for, which is buy a house, buy it for a low amount.
19:03
So ideally, get it cheaper than like it's sort of CV.
19:07
Yeah.
19:08
So what it's been valued at.
19:10
Before doing that, you basically need to know
19:12
that you can add enough value to get an immediate equity uplift.
19:15
Yes.
19:16
Whoa, whoa, whoa.
19:17
Yeah, yeah, yeah.
19:18
So we're going to weigh more detail with Pete on this.
19:21
So we will go into way, way, way more detail.
19:24
But at a high level, there's like certain boxes
19:27
that we were trying to take in order to make sure
19:30
that the house that we chose and then bought made sense.
19:34
So it was kind of, it was a really strategic.
19:37
We weren't emotionally buying a house.
19:39
We were trying to buy something to live in.
19:40
I was never going to be living in it.
19:42
Do you mean you're buying something that's best house on the worst street or?
19:46
So that's often a flippant approach.
19:48
I'm right.
19:49
Sorry, the worst house on the best street is a really good approach.
19:52
If you're trying to buy immediately, renovate and then sell on.
19:55
Got you.
19:56
OK.
19:56
So our approach was at the moment, the property market's like at a real low.
20:03
It's, you know, how they say this sort of like five to seven years of a property cycle.
20:06
Yeah.
20:07
I think it used to be 10, but now it's like shorter.
20:09
Yeah.
20:10
A lot of properties are valued and selling for a lot less than their CV.
20:15
A lot less than their value.
20:16
Yeah.
20:18
So essentially, for us, we were kind of, we decided we wanted to do like a dual approach.
20:23
We wanted to like an active and a passive investment approach to property,
20:28
which sounds kind of confusing, but essentially what it means is it's buying immediately
20:32
adding value, but then also holding on to it.
20:35
So unlike flipping a house, we were buying.
20:39
Well, we had to buy at a certain price.
20:42
So we couldn't buy it for more than X amount.
20:44
Then we knew how much we wanted to spend on renovations with the hope,
20:48
outgo for the project, was to add a hundred grand of an immediate equity uplift.
20:54
And how do you do that?
20:56
Is that adding a look of paint?
20:58
Is it adding a bedroom?
20:59
Is it a lots of different things?
21:02
And this is what I learned through the process, which I think is so, so, so valuable.
21:06
And I think for anyone listening to this who's interested in potentially doing this kind
21:10
of approach to property, we'll put, I think, a wait list or a short, like a sort of,
21:16
kind of a sign up form in the investing club, because I think there's a lot of people
21:19
that would be interested, because it was amazing.
21:21
I'm so, so stoked with how this investment's gone so far.
21:25
And I know that it's early doors, but basically the things that you would spend would be like,
21:30
you were trying to avoid having to paint in the outside.
21:33
Yeah.
21:34
And that's what I've had much, things like, is then roof in good condition,
21:37
because you don't want to have to go and fork out 25 grand to redo a roof.
21:41
It's trying to add, because medic uplift internally, without having to spend too much money.
21:49
So things like adding a bedroom is a huge win, because that means that like a young family
21:54
can have a couple of kids in the house.
21:57
That's ideally who we were trying to rent the house out for.
21:59
Things like new kitchen, new bathroom, new carpets, paint internally, things like that.
22:05
But yeah, there's obviously a massive no-no.
22:08
So when we were looking for properties, often you'd be like, oh, this seems perfect.
22:12
But then, oh, it's got a rotting roof, so you're going to fit.
22:15
So then it's an immediate no.
22:16
So they have to be like very specific things.
22:18
So anyway, it just so happened at this house in Fungeray.
22:22
Oh, so this is in the North Island in New Zealand.
22:25
This is like a sort of, it's two hours out of Auckland,
22:28
like the major city.
22:30
I don't ever plan on living in Fungeray.
22:31
It's a place where there's like a lot of young families.
22:34
And so a lot of people, when I was choosing where I would buy, everyone was like,
22:38
why are you not buying in Auckland?
22:40
Why would you not buy in a main centre, like London or whatever?
22:43
Yeah.
22:44
And I guess for me, it was like, because we were going for a investment property,
22:46
we needed the third cent deposit.
22:48
Yeah, and it's a lot for an average house price in Auckland.
22:52
Yeah, and the point is to buy, like our approach to property and what I'm doing is
22:57
I'm trying to buy low ad value, hold on to it, refinance and go again.
23:03
So I'm trying to get a property portfolio of like, I'd love in the next year to have three houses.
23:08
Yeah.
23:09
That are a lot less in terms of its value price.
23:13
They have someone's first home when they're living in the main centre with their three babies.
23:16
Yeah.
23:17
But because I don't need to live in a specific area,
23:20
I just needed that box is teched financially in terms of what we would be renovating.
23:24
Have you seen the house?
23:26
Yeah.
23:27
Yeah, I was like, it's weird like not seeing the house.
23:29
No, I actually smashed it up, like I had a sleep chairman, I went for it.
23:32
Oh, yeah.
23:33
Because I was like, this is so fun.
23:34
Yeah, it was quite, it was quite, actually quite aggressive.
23:36
Like what?
23:37
Just like one room?
23:38
The kitchen.
23:39
I went to town on the kitchen.
23:40
It was actually so funny.
23:41
The neighbour came up as I was there with my hivers and my giant sleep chairman.
23:45
That's right.
23:46
No, he was looking from afar.
23:47
There was this dude kind of lingering.
23:49
Actually, we went up with one of our friends, Lauren.
23:52
She was there with me.
23:53
Yeah.
23:54
This guy is sort of lingering looking and I was like, oh my God, he thinks that we're just
23:57
smashing it.
23:58
And we were like, I actually own it.
23:59
You're welcome to come in.
24:00
And then he came in and he was like, what are you guys doing?
24:03
And I said, oh, I try to explain it to him.
24:05
He was so confused with the fact that we were filming me trying to break a house.
24:12
He was just so worked out.
24:13
I was like, do you want to give it a whack?
24:15
He was like, will I get in trouble?
24:18
I was like, no, no, no.
24:20
I promise.
24:21
I own this house.
24:23
So I can hit it and make a hole.
24:26
And I'm not going to get in trouble.
24:27
I was like, oh my God.
24:28
It was honestly, it took like 10 minutes to be like, you're not going to get arrested for
24:32
smashing this kitchen.
24:33
Just go for it anyway.
24:34
Then he, his actual name was Marshall.
24:36
It was lovely, lovely man.
24:38
You know, he ended up smashing the kitchen.
24:39
And I didn't realize how pathetic I was being until he came along like, wow.
24:44
It was like, I was like, man, he a little dude here and there and there.
24:46
Do you do a little joke?
24:47
I'm like, oh no, that part.
24:48
And he's like, oh shit.
24:49
No, that would be no.
24:50
Because it took him so long to believe that he wasn't going to school it off by the
24:53
police.
24:54
Also, when he's holding a slew challenge, probably, yeah, not a time to get into jokes.
24:59
But yeah, when it saw her and I was like, oh, wow.
25:02
I think that how many bedrooms?
25:03
So it was three.
25:04
Yeah.
25:05
And then we added a bedroom.
25:06
Nice.
25:07
So we renovated the bathroom, the kitchen.
25:10
We did.
25:11
Yeah, this is also the renovation.
25:14
We bought it and we did the renovation within five and a half weeks.
25:17
And we had it rented within about six and a half weeks.
25:20
We've already got rents isn't it?
25:21
Yeah.
25:22
Isn't that amazing?
25:24
So like, we basically...
25:25
And just the rental cover the mortgage?
25:28
Yeah.
25:29
Yeah, it covers everything.
25:30
And that's the whole approach to this property is that I then can refinance it, go
25:33
again and cover both so that both of the mortgages are being covered without having
25:36
to.
25:37
But I'm only paying interest.
25:38
We're not paying down principal.
25:39
Okay, backtrack.
25:40
So basically, what happened was when Pete was like, right, it's going to auction.
25:44
So like, for anyone that's not bought a house, having to do all the due diligence for
25:48
a house and then go to auction kind of sucks because the chances are you do all of this
25:53
work.
25:54
And then you go to auction and there's seven other people and you get out of bed.
25:57
I wasn't there.
25:58
It was in fun today.
25:59
So it was like an online, like I did it on the phone.
26:02
My friend who I bought it was on Zoom.
26:05
Pete was on Zoom.
26:06
And I was like, honestly, I actually filled myself so we'll definitely need to make a video
26:10
out of it because it was so funny.
26:12
But I was so nervous.
26:15
And basically Pete had been like to me, look, if you're the only one there, this is what
26:20
to expect.
26:21
If there's other people here, this is what to expect.
26:22
Like, I wouldn't have had a clue what to do, having not been like giving me the lowdown
26:26
on everything.
26:28
So we turned up as in on the phone and started bidding.
26:34
And I think we started bidding at like 300 and something.
26:38
I didn't know this.
26:39
But apparently if you start bidding, like you don't want to start at like 100,000.
26:42
Because it's like, you know, it's got a cell for like, you know, close to 500.
26:46
So like, don't spend forever at it.
26:48
So I went straight in at like 300 or 350.
26:51
I think got to about 380 and then they stopped the.
26:55
So you've got $500,000 as my mortgage approved.
27:00
Yeah.
27:01
And you're bidding at 350.
27:03
So the reason I did that is that I, we've done all of our costumes before this, right?
27:08
So we knew the max we could spend on this house was $407,000.
27:13
Okay.
27:14
Yeah.
27:15
That was the max that we could spend because we then needed to spend about 80,000 on the
27:18
renovation.
27:19
Got you.
27:20
Okay.
27:21
So then post renovation, we wanted to have a minimum of 100 grand as the equity uplift.
27:28
So like when it's valued, it's, we've made 100,000.
27:33
So if we bought it for like 407, we spent 80,000 on it.
27:38
That's like 487,000.
27:40
We needed it to be valued at 587,000 post renovation to have made that immediate return.
27:47
Yeah.
27:48
So we had all these quotes for like, how much it was going to cost for carpet, how much
27:51
it was going to cost for labor, for the kitchen, for all this.
27:54
So we knew we only had 80,000 to spend on that.
27:58
And so we couldn't overspend on the purchase price.
28:02
Otherwise we wouldn't make that return.
28:04
And the whole point is you go through all of this like rigmarole to renovate and to go
28:08
and add all this value.
28:09
If you're not making any money on it, what's the point?
28:12
Just buy and hold.
28:13
Do you know what I mean?
28:14
It was like, because we were doing an active and a passive approach whereby we wanted
28:17
to buy a house, we wanted to immediately add value to it and hold on to it for a minimum
28:22
of five years to get that principal increase of like the cost.
28:26
So for example, in five years time, obviously it depends on what's happening in the market.
28:31
The idea is that hopefully in five years time, the value of that property will have significantly
28:35
gone up.
28:36
So if we had bought it for more than 400 and 7,000, we would have been eating into that 100,000,
28:46
which was our target.
28:48
Which if you're then only going to make 50 grand or 20 grand or whatever, is it really
28:53
worth the energy of going and buying and renovating like just buy a house and hold on to it and
28:58
just make money on holding on to it for a long period of time because it's going to increase.
29:02
You know, so for us, that was the max that we could pay and have you had it revalued
29:07
now?
29:08
Yeah.
29:09
Yeah.
29:10
And so don't worry, we're getting there.
29:11
So this is a three-bedroom house.
29:14
We were at about 350, so I knew I couldn't go past 400 and 7, so I didn't want to start
29:19
at like 400 and then all of a sudden be like, cool, buy, I'm done now.
29:23
And there was no one else turn up to the auction, literally no one turned up.
29:26
So I was bidding against, they had someone kind of like bidding to keep it going, which
29:31
I didn't even know was a thing.
29:32
There's someone that's bidding as the seller to try and like get it up above reserve.
29:38
And so it's usually like, if no one's there, it's you and the auctioneer, which was the
29:40
same in my case.
29:41
There was a few people at the beginning, they dropped off and then I was just bidding
29:44
with the auctioneer.
29:45
I was like, this is weird.
29:46
But at least you knew, because I was on a phone, so I couldn't see who it was, so I didn't
29:50
know what was going on.
29:51
So I think we got to 380 and I'd been like sold or whatever you say.
29:56
Yes.
29:57
380.
29:58
Hello.
29:59
Hi, me.
30:00
Yeah.
30:01
And then they said something and I went again.
30:03
Yeah, yep.
30:04
Me.
30:05
Me, me.
30:06
And they were like, no, no, no.
30:07
You're still bidding against yourself.
30:08
I was really weird.
30:09
Yeah.
30:10
I was really confused.
30:11
I should watch the video back and be like, what if you happen to ever?
30:13
I think what happened was the auctioneer was like, we're really far away from the reserve.
30:18
You're the only one here.
30:19
So we went straight into negotiations.
30:20
Yeah.
30:21
Okay.
30:22
So I was like, oh my god, oh my god, oh my god.
30:23
You're like sweating and nervous and just like, oh my god, what's happening?
30:27
And I kept muting like the call with the auctioneer and all the people listening to go back
30:32
and talk to my friend and you know, I'd be like, what do I do, oh my god, oh my god.
30:35
Yeah.
30:36
I was like, having to be like, having to be really composed on the phone and be like, I'll
30:39
do a free act.
30:40
Yeah.
30:41
I'll do that.
30:42
So anyway, I kept being like, should I?
30:43
And then like coming back and being like, anyway, it was chaotic.
30:46
But basically what happened was we then went into negotiations.
30:49
So at this point, I knew I'm the only one going for the house.
30:53
And I also knew I couldn't go above 400 and 7, like it was a hard stop for me.
30:58
Yeah.
30:59
And Pete had been like to me, don't show your cards in terms of what your prices.
31:02
You really want people to feel like they're being negotiated with and that you're giving
31:05
some and they're giving some and like, yeah, it's a whole strategic process, right?
31:10
So he was basically like to me, look, I'm just going to tell you what the CV is.
31:14
It's 485, that's what the seller wants for it.
31:18
We're at 380 right now.
31:20
We're quite far away.
31:21
And as soon as he said that, because obviously everyone else was on the phone, listening
31:25
in on the call.
31:26
And I saw everyone's faces and everyone was like, oh, no, we're not going to get it.
31:29
And so I was like, damn, sorry, not going to get it because we're so far away.
31:32
Yeah.
31:33
There's a way we can pay close to that.
31:34
Like a hundred grand.
31:35
It's like a hundred grand, like it's a lot.
31:38
And so they were like, look, I know that it's probably going to need to get to like the
31:42
400 blah, blah, blah.
31:43
And I'd said, look, my hard stop is 390, like that's what I came here today.
31:48
And that was strategic, because it's so, it's so lame, but like, it's psychological
31:53
A.
31:54
It is.
31:55
And then they're like, what is that actually?
31:56
They're like, oh, I'll give them an extra 10 grand and they'll come and 10 grand.
32:00
Oh, it's just like.
32:01
But you don't know that unless someone tells you and I think that's what's a real disadvantage
32:04
for people that are going for properties for their first round.
32:07
You have no idea what a building report is, what a limber report is, what are this, what
32:12
are that?
32:13
Like there's so much jargon.
32:14
And so I think having, firstly, a friend to be doing it with, so I wasn't like alone
32:18
in it, because I think it's quite scary.
32:20
It's a huge purchase going into that auction alone without any guidance from Pete or from
32:25
my friend.
32:26
I would have just, it would have been so scary and there's no way I would have got the
32:29
house.
32:30
Like it was so strategic.
32:31
So then I said, okay, 390, you know, we went back and forth from like 380 to 390 to
32:37
395 and then we eventually got, and I was doing all the small talk with the guy on
32:42
the phone.
32:43
And I said, I'm not afraid, like I can talk to a wall if I need to.
32:46
So there I was being like, oh, you know how's the weather in Funga, you know, like really
32:50
just going for it in between, trying to like calm my own nerves, but also like keep the
32:54
conversation going.
32:55
And then they kept coming back and anyway, it turned out that the guy who owned the house
33:00
bought it 40 years ago for $33,000.
33:03
Wow.
33:04
So that in itself, I like, oh, so he bought it 40 years ago for $33,000 and people will
33:14
be listening to this podcast and 40 years time going, gosh, so I've got a bargain.
33:18
It's $407, what have you bought it for?
33:22
So you're like, hopefully.
33:23
So basically, the guy kept saying to me, look, I think we're going to need to get it
33:27
into the falls.
33:28
You know, it's going to have to get to 400, otherwise I don't think it will sell.
33:31
And in my head, I'm like, 400, because like that was so close to my absolute hard
33:36
stop, right?
33:37
I made it out like I was really coming to the party.
33:39
I was like, okay, look like that's my hard stop, but like, I mean, like maybe I got it,
33:44
yeah, so it was a bit of that, which maybe we shouldn't be giving the secrets away,
33:48
but I feel like everyone needs to know that, otherwise you're not going to be able to win
33:51
it auction.
33:52
So anyway, basically, it finally got to the point where he was like, can you do 400?
33:58
And I was like, you know, look, I'm getting it.
34:01
I'm going to have to sell some clothes in my wardrobe, but I can give it.
34:06
I was like, oh, look, okay, just give me a minute to think about it.
34:09
And I like really was being such a salesperson about it.
34:13
And then I was like, yeah, okay, yeah, like, but I'm being theory honest, there's absolutely
34:18
no movement because they actually wasn't even if they said 405, maybe, but I was just
34:23
like, I'm kind of done at this point.
34:25
And I kept saying, look, I don't want to waste it on time.
34:28
This is my genuine.
34:29
I can't go above this.
34:30
So just pass on.
34:31
I don't take it.
34:32
I don't take it.
34:33
Then this is the last one.
34:34
You know, because we'd gone back before like five times at this point.
34:37
Apparently it was like one of the longest negotiations ever.
34:40
It's just a good thing.
34:41
Yeah.
34:42
You're like, you're just exhausting them.
34:43
Just like tied them out.
34:44
And eventually they'll come to my place.
34:46
Anyway, then I were like, okay, Malcolm, whatever his name was, is happy with 400.
34:53
And I looked to the screen and I saw my friend and Pete just like losing their ship and
34:58
like, oh my god, oh my god.
35:01
And I had to really do like, and I was like, thank you.
35:04
Okay.
35:05
Cool.
35:06
Thank you so much, Bangladesh.
35:07
So good.
35:08
And my parents were standing outside the bedroom door listening.
35:10
So excited for me.
35:11
They wanted to watch.
35:12
And I was like, way too nervous.
35:14
I can't stay outside.
35:16
Then they go back out to the auction room, which I didn't realize.
35:19
And they went back out and they were like, did the whole thing again?
35:22
Like, okay, going for 400, going once, going twice.
35:26
And I was like, oh my god, what if someone pipes up and then it's like kidding all by it.
35:29
So I was like, maybe I haven't got it.
35:31
Yeah.
35:32
Anyway, then sold.
35:33
And I was like, I actually like, I can't even explain how it felt.
35:41
Like, even thinking back on it, it makes me want to cry.
35:46
You're like, I have a heart.
35:47
I was like, oh my god, I did it.
35:49
Like, holy shit.
35:51
And I jumped up from my parents like, burst in and were like hugging me.
35:57
And I was like, honestly, just like, it was so surreal.
36:01
I was like, I can't even believe that I bought a fucking house.
36:04
Yeah.
36:05
I just, I think.
36:07
It's amazing though.
36:08
It's just like so many times where I was like, I don't know if I can like get, I don't know.
36:14
Or like have also have the.
36:17
Yeah, to keep going when it's like you get waxed down and say, no, no, no.
36:22
Yeah.
36:23
When it was bought and we then had to like transfer like $40,000.
36:26
I was like, this is the most.
36:28
Like straight away.
36:29
Yeah.
36:30
Either.
36:31
And I was like, kept saying partial match on the online.
36:34
Like, you know, this would just be my life that I transfer $40,000 to the wrong account.
36:39
I was like, what's the tension here?
36:41
Anyway, I lawyer Hannah, who's like amazing, sent like a bottle of champagne to the house.
36:46
And it was honestly the most euphoric feeling ever.
36:49
And so basically what happened was.
36:51
Meanwhile, I'm sitting here being like, I know and you're not like that.
36:54
She's having a real tough tough.
36:57
Well, I tried.
36:59
I really wanted to tell you.
37:01
I wanted to record with you before you left to come back.
37:04
And I booked in the record.
37:06
And I got some excuses to what the record would be.
37:08
In fact, was like, I don't really need to leave here.
37:10
I don't really need to be there.
37:11
Like, you can just do it yourself.
37:13
I even said that.
37:14
And I was like, flying in for it.
37:16
I was like, someone's flown a station for this.
37:18
Oh, my God.
37:19
That's right.
37:20
No, no, no, no.
37:21
I'm sorry.
37:22
And I was being like, trying everything to be like, please.
37:24
Oh, my God.
37:25
Please come.
37:26
Please come.
37:27
And then I was like, okay, well, I'm just going to have to like tell her when I need to.
37:30
Oh, my God.
37:31
So that was kind of what happened.
37:32
But basically, so because we bought it for $400.
37:34
Yeah.
37:35
Like, firstly, tech, right?
37:37
Because this isn't in line with like what our numbers said in terms of getting this equity uplift.
37:42
So, bought it, started renovations like really quite quickly.
37:47
Went up, smashed the kitchen out, et cetera.
37:49
And then, yeah, renovation started and they took five and a half weeks.
37:53
Which is record time.
37:55
And that's credit to Pete for being just like so bloody good.
37:58
He had like real.
37:59
How does Pete get paid?
38:01
So Pete was doing it for me as like a testimonial.
38:03
Because this was kind of a risk for me too, right?
38:05
Yeah.
38:06
So I was doing it with someone who didn't really have a set up.
38:08
Like, he had experience doing it for himself.
38:10
But not for so long.
38:11
But he didn't have, yeah.
38:12
So I was kind of taking a bit of a risk in a way.
38:15
He could have been terrible and a really shit job.
38:17
And I would have potentially not made any money from it.
38:20
But I was sort of just like, worst case scenario here is,
38:23
we blow out on the renovations.
38:25
We don't make very much of a return in terms of that instant equity uplift.
38:29
But the rental covers that.
38:30
The rental covers that.
38:31
Yeah.
38:32
I'm only paying interest.
38:33
And I'm going to hold it anyway.
38:35
So like worst case scenario, I'll get long term returns
38:38
by holding onto house for like five years.
38:40
Yeah.
38:41
So I was sort of, and I just trusted him.
38:43
I thought he was really cool and nice.
38:44
And I don't know.
38:45
I just had a good feeling about it.
38:46
And I thought, you do have to be a bit risky sometimes.
38:49
And it's taking me so long to get the place where I could even buy one.
38:52
But I was like, just risk it.
38:55
Yeah.
38:56
Just give it a go.
38:57
I like weighed up pros and cons.
38:59
And I just felt like the, the car, the, the pros outweighed,
39:03
the potential blow out.
39:05
So anyway, sort of renovations.
39:07
They were done within like five and a half weeks.
39:09
And then we got handed over to a property manager.
39:11
They found a tenant.
39:13
But we got it revalued.
39:15
So this was the best part of the whole thing.
39:17
So we had someone come in.
39:19
And they basically look around the house, right?
39:21
And they're like, yeah, this is the land.
39:23
They, they like compare it to.
39:24
And so this was all part of the process that we did before we bought the house,
39:27
was we looked at houses and what they're selling for in the surrounding streets
39:31
and suburbs.
39:32
What were the pros and cons of those that they have more land?
39:34
They have better, more rooms, blah, blah, blah.
39:37
And then you try and basically predict what you think the valuation will be after that.
39:42
So and that's kind of how you get to your target of like the numbers that you need for.
39:47
Purchase price, the amount you spend on Reno,
39:49
but then the revalue of what you think you can get it revalued at.
39:52
If that makes sense.
39:53
Why the 100,000?
39:54
For the amount of effort we were going to.
39:56
Sorry.
39:57
Why bother otherwise?
39:59
And also I was sharing the return with my friend.
40:02
So for me it was only going to be a 50,000.
40:04
And that's New Zealand.
40:05
That's actually only 25,000 pounds.
40:07
Yeah.
40:08
It's already not enormous, you know?
40:10
But it was good enough that I was like incentivized to do it.
40:13
Yeah.
40:14
It's like if you sold it right now, you would have made 25,000.
40:16
Is that worth the time and effort that you put in?
40:18
Yeah.
40:19
That's kind of where you get to with it.
40:20
So in order for us to make that instant kind of return on our investment,
40:27
we needed it to be valued at.
40:31
I don't know if we bought it for 400, then we spent 80,000 on that.
40:35
You needed 480.
40:36
We needed it to, yeah, for 580.
40:39
So the value I came in looked around and I was like,
40:44
God, this could be really, this could be really good.
40:46
It could be really, really bad.
40:47
You're like, have you seen the kitchen?
40:49
Have you seen the bedroom?
40:50
I was like, yes.
40:51
We got new carpet.
40:52
Yes, I can see it.
40:53
So Pete was like, I threw him three handy and sent him a box of it.
40:57
And I was like, are you joking?
40:59
I think that's illegal.
41:00
And he's like, of course, I'm joking.
41:01
You idiot.
41:02
Like, of course, that's a joke.
41:03
What do you mean?
41:04
Well, he was kind of joking.
41:05
I'm trying to bribe him to get us a good valuation.
41:08
But I was like, and for a second, I was like, quite clever.
41:11
But also, will we get a joke?
41:13
Obviously, that's illegal and no, I did not do that.
41:18
Anyway, so then the valuation came back.
41:21
I'm just trying to get my, so it was valued at just over 600,000.
41:25
Oh my god, amazing.
41:26
So we made 122,000.
41:28
And five weeks.
41:29
And five weeks.
41:30
Poor Malcolm.
41:31
Don't do that to me.
41:33
Sorry.
41:34
No, I'm sorry.
41:35
No, don't do that to me.
41:36
Sorry, sorry.
41:37
So I felt really guilty for afterwards.
41:38
Honestly, like I did because I was like, oh my god,
41:40
if I just cheated someone out of there.
41:42
No.
41:43
No.
41:44
No, no.
41:45
They totally, they may have not had the 80 grand to do their innovations.
41:49
You know, he may have, they've been so many situations, you know,
41:52
you have no idea on someone's situations.
41:54
But it is, it is this weird moral dilemma where it's like, sorry.
41:58
I can't buy it for a certain amount.
42:01
But I guess the thing is, I wouldn't have bought it from more than that.
42:04
He wouldn't have sold it.
42:06
He might have really needed to sell.
42:07
Totally.
42:08
You have no idea.
42:09
But it is, it is.
42:10
It's this really weird thing where it's like, oh god.
42:12
He wanted 480, five.
42:15
He was 85,000 less than what he wanted.
42:17
Will that really impact him in his retirement?
42:20
And like, you know, it actually is all he wanted.
42:22
But it's all he wanted to play in my mind a lot.
42:23
I felt really uncomfortable about it afterwards.
42:26
Oh, I don't know, it's a really funny one.
42:28
As he turned, he bought it for 33,000.
42:30
Yeah.
42:31
I mean, he would made like a, I don't know, 100,000 percent, what I don't want.
42:35
And also, it's kind of the same with shares, right?
42:39
You're always buying off someone who's selling.
42:41
And if that share price goes up, they've lost out.
42:45
You've gained.
42:46
And vice versa.
42:47
If you bought off them, the share price falls.
42:49
They're winning.
42:50
You're losing.
42:51
Like, it's like, it's, it's kind of just life.
42:53
In the nicest way.
42:55
You know, like, you're a transaction.
42:57
There's always a buyer and a seller.
42:59
Someone could have bought that off Malcolm and sat on it
43:02
and the property market done terribly and be worse off.
43:06
You know, like, the fact that you were an active investor
43:09
and you've done your numbers and you actually wanted
43:12
to generate a return and you knew how
43:14
and you had the expertise, that's not a bad thing.
43:16
That shouldn't be, you can't go around like...
43:19
It is a weird, the thing is, you know, when you said,
43:22
Paul Malcolm, I get it because I did really have that moment.
43:26
Like, shit.
43:28
I think at the end of the day, he didn't have to sell it.
43:31
He could have sold onto it.
43:32
He could have sold it for someone else.
43:34
And also, think about all the other women now who have just listened to this,
43:37
who are like, actually, I've got a friend that I could buy.
43:39
Or like, you know, there's so many other positives to come out of here.
43:43
I think...
43:44
I don't know, I just feel like I shouldn't have said that.
43:46
No, no, no, no.
43:47
I think it's a really valid and valuable thing to bring up because...
43:51
Yeah, it was something that I sat on and felt a bit weird about afterwards.
43:55
You know, I was just saying...
43:57
You know, I was catrified, was that cat and Matilda?
44:00
Oh, and they just keep making...
44:02
And I feel like the bigger the hole that I'm making,
44:04
I've got my fingers just like...
44:06
You know, with the hands.
44:08
And so, we'll go into more detail with the process and the pros and cons
44:12
of this type of property buying,
44:14
because I think it's really important to know that this is obviously only going to work for some people.
44:19
And I'm not saying that this is the be all and end all of...
44:23
But for me, for someone who couldn't live in a property,
44:26
who couldn't do it by herself,
44:28
who also really wanted to make decent returns out of property investment
44:33
and understands the idea of leverage and borrowing money from the bank
44:36
and how that can amplify the amount of money you can make.
44:39
To me, I was like, this is an amazing investment for me,
44:42
if it goes well.
44:43
And then the other part of that is I also didn't want to go and put
44:47
all of my money into the property market yet.
44:50
I wasn't ready to.
44:51
I wanted to keep someone shares.
44:53
And so, to be able to do it in this way,
44:55
meant that I could still put a decent amount of money into property.
44:59
But I wasn't undiversified.
45:02
And I think for me, I liked that.
45:03
I liked the idea of having some money in stock still,
45:07
some in my retirement fund, some in property.
45:11
And so, we'll go into more detail with Pete
45:15
on this particular approach to property,
45:17
and how we did it in more detail.
45:19
Because I think it's such a valuable and important thing to learn
45:22
and if you're interested in investing in this way,
45:24
join the Investing Club because we'll do a short list
45:27
to help you find out if this kind of property investment could be right for you.
45:31
And if so, you know, pass you on to Pete
45:33
or the right person to do it.
45:34
But my biggest learnings were how creative you can get
45:41
with different asset classes,
45:43
whether that's stock or property,
45:45
and how important it is for people to understand
45:49
the various ways that you can do it.
45:53
And it's like anything new, right?
45:55
You've got to talk to people.
45:56
Talk to different people.
45:57
You know, ask them how they did it.
45:59
Ask about the different approaches.
46:01
Talk to banks.
46:02
Just like, yeah, it's talking to as many people as possible
46:06
and you'll feel like, oh, I don't realize you could do that.
46:08
Or, yeah.
46:09
Because actually, this particular type of investment,
46:11
you can do, you can buy an investment property
46:13
if you have it on the refinancing piece.
46:16
I'm actually looking at maybe doing a second one.
46:19
Which is wild.
46:20
Absolutely wild.
46:21
Within like three months to be thinking about buying a second property
46:24
is like, absolutely outrageous.
46:26
But there's so much to understand around,
46:29
if you have a property, you can actually like refinance
46:32
or use the equity in the house to buy again.
46:35
So if I do this again, the amount that I put in
46:38
is significantly less than the first time,
46:40
which then makes sense with the property ladder, right?
46:42
Yeah.
46:43
Yeah.
46:44
Once you get the first one, then it's like that.
46:45
So much easier to keep going.
46:46
It's like wealth and money breeds, wealth and money.
46:48
Yeah.
46:49
So yeah, I bought a fucking house.
46:51
Woohoo!
46:52
Woohoo!
46:53
It's honestly so nice to be able to talk about it finally.
46:58
I wish we'd done a podcast in the house.
47:00
Yeah.
47:01
I mean, it was hard enough to get you in your own house.
47:03
I know, yeah.
47:04
We could have just asked the tenants.
47:05
We're like, do you mind?
47:06
I did film, like, going to see it.
47:08
Oh, yeah.
47:09
And like, meeting the neighbour.
47:10
Oh, my God, I can't wait to see it.
47:11
If you're making all this noise, I make a lot of noise at the drum base.
47:14
I was like, oh dear God, I'm not going to be able to run this house out.
47:18
Yeah.
47:19
The neighbour's place allows drum.
47:20
Oh, my God.
47:22
But yeah.
47:23
And who are the tenants of family?
47:25
So there's a young mum.
47:27
She's a single mother.
47:28
And she's got two young kids.
47:29
I think she's quite young.
47:30
She's like 24.
47:31
Oh, yeah.
47:32
And she used to work in the supermarket.
47:34
She worked away up to being manager.
47:36
And then she recently became a single mum and moved to Funga Day to be closer to her family.
47:41
Oh, yeah.
47:42
So I think she must have broken up with her partner.
47:44
And so this is like the perfect house to her.
47:46
It was interesting because she's on the benefit.
47:48
That was something where I was like, oh my God, she's a single mum.
47:50
She's not working.
47:51
I had to really do the math where I'm like, how much is she getting for her benefit?
47:56
And like, is she going to be able to afford to pay the rent?
47:59
Which is kind of a funny one.
48:02
Because obviously I was like, perfect.
48:03
I'd love for there to be a single mum with her kids in our house.
48:06
What a perfect, perfect tenant.
48:08
But then the idea of like...
48:10
In some cases they're the best tenant because the government, the money goes straight to the land.
48:14
Well, that's exactly what the property manager said.
48:16
Like, if for some reason she can't pay it or something happens,
48:20
the people who pay the benefit kind of can step in or any...
48:23
Yeah.
48:24
That was just interesting to know.
48:25
But I think the biggest piece here is like,
48:27
a lot of people think with mortgages or buying property
48:29
you have to be constantly topping up the mortgage.
48:31
If you do your numbers properly and you buy within the right range of what you can afford,
48:35
I'm not putting any money towards topping up my mortgage.
48:38
Like it's all self-sufficient.
48:40
And if I go again, it will all be self-sufficient.
48:42
And I think that's like insane.
48:44
To think that I'm making, first of all, an instant equity uplift.
48:48
Yeah.
48:49
Secondly, holding on to them for a period of time so they grow in value
48:52
and not having to chip into my salary from month to month to pay it off.
48:56
That's absurd.
48:57
Yeah.
48:58
It's such an amazing...
48:59
And also with interest rates coming down as well.
49:02
You know, that gap is only...
49:04
Like, if you're re-stain the same and mortgage rates coming down and down,
49:08
that means that you're paying less interest on the mortgage,
49:12
then you almost can be in a position where you're making money
49:17
because your rental income is greater than your income.
49:20
I think we're like clearing about 8,000 a year.
49:22
Oh yeah, nice.
49:23
So it's a lot.
49:24
But it's enough to cover maintenance and things that go right up.
49:27
Yeah.
49:28
But another point I just wanted to bring up is, you know,
49:30
an Emily was mentioning this at the start in terms of...
49:32
There's a lot of...
49:33
I don't know.
49:34
People think, oh, you're buying with a friend there for it.
49:36
Maybe more dodgy or whatever.
49:38
We were really clear with each other on how long we wanted to hold this for
49:43
and at minimum, so that we're on the same page.
49:46
So there's no conversation if we're actually not selling this any earlier than five years.
49:49
Yeah.
49:50
Neither is it going to need the money.
49:52
Before then, obviously there's different things.
49:54
But we needed to, like, get a will in place.
49:56
We needed to think about getting insurance on each other.
49:59
There's a whole lot of stuff that we had to, like,
50:01
think about and put in place.
50:03
But we actually bought it and did it through a company.
50:05
So we did, like, a look through a company,
50:06
rather than doing it within our own names.
50:08
So we've really, like, legitimized it in the sense that it's a business that's buying
50:13
and responsible for the...
50:15
What are you laughing at?
50:16
No.
50:17
This is making sense now, because Mum emailed me and she was like,
50:22
someone's been requesting documents from the company's house
50:27
with our New Zealand company or someone requested.
50:30
So we used to be a New Zealand company.
50:32
Now we're a UK company.
50:33
We've kind of...
50:34
Just like a bit of a shell.
50:35
There's nothing in New Zealand.
50:36
I think we're...
50:37
I think we're still directors of this non-existent company.
50:40
And, like, something property...
50:42
What did you call the company?
50:44
Hackney property.
50:45
Yeah.
50:46
And Mum's like, Hackney property has been asking for some documents
50:51
on the New Zealand curve company.
50:54
And I was like, instantly, this is so bad.
50:56
I was like, so...
50:58
I thought it was the Hackney Council.
50:59
I thought it was the Hackney Council.
51:01
Was that...
51:02
Chasing.
51:03
Soft.
51:04
Which, to be fair, would be on brand.
51:07
And I was like, oh, I was like...
51:10
I was like, the company doesn't exist.
51:11
I was like, just ignore it, just ignore it.
51:13
I was like, oh my god, quite funny.
51:14
It's all making sense now.
51:15
Yeah, so that's what happened.
51:16
I thought it was the Hackney Council.
51:17
That's so funny.
51:18
And I was like, they've chased it in New Zealand.
51:20
I was like, wow.
51:22
Sorry.
51:23
No.
51:24
That's quite funny.
51:25
So, yeah, so now, so basically, we have...
51:27
We've got, like, a shareholders agreement.
51:28
So we're both 50-50 shareholders of the business.
51:31
Which owns the property.
51:33
Yeah.
51:34
So then if we go and buy another property, it's the same thing.
51:36
Yeah.
51:37
You know?
51:38
And it just means that when we have our little business meetings
51:40
once a month, when we talk about, you know, what needs to be done.
51:43
We have our emergency fund for the house.
51:45
So we've got money in case, you know, we need to blah, blah, blah.
51:48
So anyway, it's been a real grown-up investment for me and...
51:53
Nice!
51:54
So far so good.
51:55
Yay!
51:57
Can we eat cake now?
51:59
Can we eat cake now?
52:00
Yeah, we can eat the cake.
52:01
And also for anyone who has any questions about this episode
52:04
or, like, wants to know more, please get in touch because I'm all of a sudden...
52:08
A property freak.
52:09
Like, I'm loving it.
52:10
It's such a fun...
52:11
I'm excited to see pictures.
52:13
You just fucking chomping away at the cake while talking.
52:16
Yeah, I'll show you videos.
52:17
I'll show you videos.
52:18
It doesn't listen to anything you see.
52:19
Just sit here and join the cake.
52:20
Yeah, I'll show you the before and afters.
52:22
What advice would you give to someone that was in your position
52:26
which we saw on that podcast, not that long ago, a few months ago?
52:29
That's right.
52:30
About to give up hope.
52:31
I think what you said earlier about doing your research,
52:35
there are so many ways to buy property, so many.
52:39
And I think that the best thing you can do is have a mentality of a really hungry, determined...
52:46
I'm going to make this happen.
52:48
Because I think that if I hadn't to be really honest,
52:52
if it wasn't for this podcast and the fact that this was such a public situation,
52:57
maybe I would have been...
52:59
Oh, I just can't be bothered.
53:01
And this is just too hard.
53:02
But I think from a...
53:04
You're like, the people need me to keep going.
53:07
Well, like, principally, it was like, I hate the idea that this is so hard.
53:11
And if this is so hard for me, imagine how hard it is for everyone else.
53:15
There's God to be a way, you know?
53:17
And I think so.
53:18
I think that it comes down to...
53:21
Talking to people.
53:22
Talking to people.
53:23
But also, if you're like, who do I talk to?
53:25
It's like, just talk...
53:26
Start by just talking to anyone who's bought a house.
53:28
Like, if someone came to me and was like, look,
53:31
I just am really struggling by a house.
53:34
Even though I probably wasn't the right person to ask,
53:36
at least I know, oh, actually, I should put you in touch with Salt,
53:38
or put you in touch with Pete.
53:40
You know, like, you never know...
53:42
Even though that person might not seem like...
53:45
They have the answer.
53:46
They can introduce you to other people.
53:47
It's like, yeah.
53:48
I think creatively about your deposit.
53:51
Yeah.
53:52
Do you know anybody in your life?
53:54
Do you have any friends?
53:55
Anyone that you trust that is in a similar position?
53:59
Where may be their single?
54:00
Or...
54:01
Yeah.
54:02
Think about it creatively, because you can structure it in any way.
54:04
Say you have 50,000 as a deposit.
54:06
Someone else might have 150, you know?
54:08
And you can just do what we did with our company holding
54:11
and have, like, weighted shareholding.
54:13
So if someone has, like, way more shares,
54:15
there's so many ways of dealing with the deposit side.
54:17
I think that's the first part.
54:19
I think, think differently about the idea of property investment.
54:23
Don't put the pressure on yourself to think you need to buy
54:26
a house to live in.
54:27
That you love that's in a cool area.
54:29
Hmm.
54:30
You can actually change your mindset around, like, okay.
54:34
If buying a home as a, and I need to get a million dollar mortgage
54:37
to be able to be in the area that I want to live in,
54:40
is not possible.
54:42
Think of it as a ladder.
54:43
What does a stepping stone to get to that goal?
54:46
Yeah.
54:47
Start with something smaller.
54:48
Start with an investment property.
54:49
Yes, you need 30%, so it's more than, like, a 20% deposit.
54:53
But you can buy anywhere.
54:55
That goes for anywhere in the world.
54:56
You don't just have to buy in the main centers.
54:58
You can invest in property, build equity, and then get to the next goal.
55:02
Like, I think...
55:03
Don't think of it as, like, you've got to go from zero to the end goal immediately.
55:08
You're not buying your million dollar house yet?
55:11
Oh, yeah.
55:12
It's yet.
55:13
It's not that you can't afford it.
55:14
That you can't yet.
55:15
I think that's a really big one.
55:16
I think, speaking to several different mortgage advisors to understand, like, you know,
55:22
if I'd just taken my first, the first person I spoke to who basically told me
55:26
it was impossible and kind of laughed at me, I...
55:29
Yeah, I could have not ever bought a house.
55:32
I think that it's so important to...
55:34
I'm just like that person.
55:36
I'm like, why did kill people's dreams, eh?
55:38
Yeah.
55:39
Like, I'm...
55:40
Look at me now, bitch.
55:42
But it is...
55:43
No, but I do think...
55:44
But you know it.
55:45
It's like...
55:46
Just...
55:47
Even if it was a no.
55:49
I don't know these ways.
55:50
But I think the thing to learn from that, though, is to take the responsibility
55:53
into your own hands.
55:54
Someone else isn't going to try and figure the system out for you.
55:56
You have to figure the system out yourself.
55:58
If computers is no, you do the research.
56:01
You have to have the fire in your belly to find a new way of doing something.
56:05
Because I think...
56:06
That's true.
56:07
You have to figure it out of their way if it's not of benefit to them.
56:10
This is your project.
56:11
Think of it in that way.
56:12
You get a no.
56:13
You get creative.
56:14
You ask someone else.
56:15
You know it's like, it's got to be...
56:16
You've got to approach it in that way.
56:18
A no is never no.
56:19
Yeah.
56:20
It's okay.
56:21
It's not...
56:22
This way...
56:23
Rejection is a redirection.
56:24
Yeah.
56:25
Definitely was in your case.
56:26
Yes.
56:27
And I think the other thing would be...
56:28
When you're in the process of...
56:30
If you haven't quite got to the point where you're approved for a house,
56:33
or your board house,
56:34
or maybe you own a property and you're trying to go again,
56:36
struggling to get through whatever hopes you need to,
56:39
spend that time continuing to learn about the legalities,
56:42
the things that you need.
56:43
Do your costumes be proactive?
56:46
Because for us, when this property came up,
56:48
it was all of a sudden.
56:49
Oh, good Lord.
56:50
We have to move quickly.
56:51
Use your time wisely.
56:53
Just research, learn, understand everything.
56:55
Yeah.
56:56
And yeah, like making sure that you have all the people you need.
56:58
A lawyer, a blah, blah, blah.
56:59
Also honestly, just come to us,
57:01
like that's what the investing clubs for.
57:02
Yeah.
57:03
If you feel stuck and you're wanting to know
57:05
how to invest in anything and if that's property,
57:07
get in touch.
57:08
We know amazing people who can help.
57:10
Yeah.
57:11
Coming together with like your community,
57:13
whether it's within the investing club or your friends and family,
57:15
like people want to see you succeed.
57:17
And I think in the moments of weakness when you're like,
57:19
I'm over this, this sucks.
57:21
Like that's when you reach out to people for support
57:23
because you need to just reinvigorate your own drive to keep going.
57:28
It's also remembering when you're at like,
57:30
look, remembering when you're next getting those moments,
57:33
where you are now.
57:35
You know?
57:36
Like if you...
57:37
Do you mean a homeowner?
57:38
Yes.
57:39
Yes, a homeowner.
57:40
No, but you know when you think they're coming roundabouts,
57:42
right?
57:43
Like if it's a breakup, if it's getting knocked back
57:46
in one of your dreams of buying a house,
57:48
like it's looking at that person and going,
57:52
oh my gosh, I've come so far from where,
57:54
when that felt like that was rock bottom,
57:58
whatever it may be.
58:00
Yeah.
58:01
Even if it's an investment gone wrong,
58:02
it's like you can always come back from it.
58:04
Do you know what I mean?
58:05
Yeah, yeah, yeah, resilience.
58:06
Resilience.
58:07
It's a bloody resilient.
58:08
Yeah.
58:09
Okay.
58:10
You can't knock us down.
58:11
Yeah.
58:12
We like those things.
58:13
You know those like inflatable.
58:14
Oh yeah.
58:15
And then you know, no.
58:16
You thought I was going to hit you in the back.
58:18
Yeah, yeah, yeah.
58:19
I'm back.
58:20
Oh, congrats, Sophie.
58:24
Thank you.
58:25
Very exciting.
58:26
And thank you to everyone in the community
58:28
who sent many messages of support and encouragement.
58:30
It was beautiful.
58:31
And encouragement.
58:32
It was so cool, wasn't it?
58:33
Like, can you go and buy your second ones?
58:34
We're going to have more cake.
58:35
Yeah.
58:36
Yeah, don't worry.
58:37
We're already working on it.
58:38
Nice.
58:39
Obviously, like, have maybe found a second one.
58:41
Okay.
58:42
Have already gone through the process of getting,
58:44
yeah, refinanced and potentially looking at actually doing it.
58:47
So we might have an update soon.
58:49
Nice.
58:50
Okay.
58:51
Bye.
58:52
Did you love the set the service?
58:55
Yes.
58:56
Have you got property, front and center in your mind?
58:59
Yes.
59:00
So I was like, you're a five-year-old.
59:02
I know.
59:03
Now could be the time to take the first step towards what it is
59:07
that you're wanting to buy.
59:08
Whether that's your first home, whether that's a new flat,
59:10
whether it's, I don't know, buying another investment property.
59:14
And thankfully, BNZ has the expertise and tools
59:17
to help you get started.
59:18
And their home loan partners are ready whenever you are.
59:22
You can book an appointment.
59:23
You can ask millions of questions.
59:25
Trust me.
59:26
That is totally fine.
59:28
And you can start turning the property dream that you have
59:31
into a plan and hopefully soon into a reality.
59:34
I know from experience that this can feel quite overwhelming
59:37
but when you're working with experts who can actually help you get there,
59:40
it's such a burden of your shoulders.
59:43
Know that you've got the advice and the tools that you need to actually make it happen.
59:47
We know how hard it can feel and like overwhelming and just, you know,
59:52
so like a fish out of water when it comes to buying properties.
59:55
So we're so thankful to BNZ to be helping us create and empower this
1:00:01
podcast so that people can learn and we just want you all to succeed.
1:00:06
We want you all to succeed.
1:00:08
We're all in your corner and this is going to be such a game-changing
1:00:11
podcast series.
1:00:13
Yes.
1:00:14
And for anyone that has gone through the process of either buying a house
1:00:17
or a flat or whatever it is that you're trying to do,
1:00:19
please let us know because we would love to be sharing you on from the sidelines.
1:00:23
But thank you so much again to BNZ for empowering this podcast.