Latest / TFS WealthCast / First Home Buyers: Buy Now or Wait? Navigating the New Home Guarantee

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First Home Buyers: Buy Now or Wait? Navigating the New Home Guarantee · TFS WealthCast

0:04
SPEAKER_01: It's the TFS market.
0:06
SPEAKER_01: Where money markets will and financial freedom is more than just a gold.
0:12
SPEAKER_01: Without further ado, let's dive in.
0:17
SPEAKER_02: Hi guys, welcome to another episode of the TFS Worldcast.
0:21
SPEAKER_02: And today we have a topic that a lot of people are talking about these days.
0:26
SPEAKER_02: That is the first term guarantee scheme starting from the 1st of October, introduced by the Australian government.
0:33
SPEAKER_02: And we're gonna ask Pramu a few questions that most property buyers would have regarding the first term guarantee scheme.
0:40
SPEAKER_02: So let's get let's dive straight into it.
0:43
SPEAKER_02: Pramu, can you please outline the major changes coming to the home guarantee scheme on the 1st of October, such as the removal of income caps, unlimited places, and the new price caps for different states.
1:02
SPEAKER_00: Sure Viji.
1:03
SPEAKER_00: Um it's one of the topics that everybody is talking about these days, uh, especially in the first home buyers.
1:11
SPEAKER_00: I think they most of these people were waiting for this kind of changes to happen.
1:17
SPEAKER_00: Uh property prices have gone up.
1:19
SPEAKER_00: Um uh so therefore the uh the borrowing capacity versus the property prices, and then you know, different states has different issues.
1:31
SPEAKER_00: So I think uh I do like this change uh from the government.
1:35
SPEAKER_00: Uh they have really thought about the first stone bias, the problems that these guys are facing, uh, how to address them.
1:45
SPEAKER_00: So first from the 1st of October in uh 2025, unlimited places, no and uh and uh no income caps, right?
1:56
SPEAKER_00: So unlimited places means before you had uh uh uh a certain amount of uh places or there was a quota.
2:04
SPEAKER_00: So if this if it's if that quota has been filled, you have to wait till the next quota opens up.
2:11
SPEAKER_00: Um now that's gone, right?
2:14
SPEAKER_00: So if you're eligible, you can apply, you'll get your place.
2:18
SPEAKER_00: Uh the other one, no income caps.
2:21
SPEAKER_00: Now, this one is very good for uh especially hardworking couples, uh you know, young single fellows who's earning good income.
2:32
SPEAKER_00: I know there are uh pro professionals like lawyers, doctors, engineers, uh earning above 125,000 single guys.
2:43
SPEAKER_00: Now, fine finally, these guys can take use of this uh home home home buyer guarantee scheme.
2:50
SPEAKER_00: So for I I'm more used to this home loan deposit scheme name.
2:54
SPEAKER_00: So they keep changing the name as well when they're changing all these things.
2:57
SPEAKER_02: Yeah, basically the 5% deposit scheme was already there.
3:00
SPEAKER_02: Yeah, but they just introduced a few changes where they got rid of the price cap, they increased the max price cap, for example, in Victoria from 800,000 to 950,000.
3:11
SPEAKER_02: And then also they earlier they had restrictions on regional suburbs.
3:15
SPEAKER_02: Now it doesn't matter, you can buy regional, you can buy in metro.
3:18
SPEAKER_00: Yeah, yeah.
3:19
SPEAKER_00: So there are a few few few changes that happen in that the price point as well.
3:24
SPEAKER_00: Uh I hope that they will keep this name, Home Guarantee Scheme as is because I mean is they're gonna change this name again, man.
3:31
SPEAKER_00: I'm I'm gonna be uh I'm just gonna call it whatever I want it from this point onwards, you know.
3:37
SPEAKER_02: I'm pretty sure if the party changes in the next elections, they will bring a funny name as well.
3:42
SPEAKER_00: Never know.
3:43
SPEAKER_00: So this uh property uh prices, right?
3:46
SPEAKER_00: Property price caps, they've increased it, which is very good, right?
3:50
SPEAKER_00: And they've really considered about the actual price points of properties in the market.
3:57
SPEAKER_00: Example, New South Wales, up to 1.5 million.
4:02
SPEAKER_00: I mean, thank you very much.
4:05
SPEAKER_02: Very realistic figure, at least now, you know, for stone buyers can consider getting a good property.
4:12
SPEAKER_00: Yeah.
4:12
SPEAKER_00: I mean, how many of our first home buyers ended up buying properties above million in New South Wales?
4:17
SPEAKER_00: Which which they should have got the uh zero LMI.
4:23
SPEAKER_00: They should have been approved under home guarantee scheme.
4:26
SPEAKER_00: Um, but unfortunately, they were not eligible because of the property prices were above the threshold, right?
4:33
SPEAKER_00: Now, finally, there's a realistic figure: 1.5 million.
4:39
SPEAKER_00: Um, Victoria, I mean, I'm a little bit disappointed.
4:42
SPEAKER_00: 950,000.
4:44
SPEAKER_00: Maybe you can, you know, maybe we can go to million.
4:46
SPEAKER_00: Come on.
4:47
SPEAKER_00: What's the difference of the 50,000?
4:49
SPEAKER_00: I I just don't understand that 50,000 difference, but better than 800,000, I would say.
4:56
SPEAKER_00: Yeah, yeah, exactly.
4:57
SPEAKER_00: I mean, um, but um, look, it's uh it's a it's a good thing for for fellow Victorians.
5:05
SPEAKER_00: Um we know this quite a lot.
5:07
SPEAKER_00: A lot of uh stone buyers uh who are asked to you know buy their land or build their have their bill contract within the$800,000 uh price point uh or buy uh buy their whatever the property that they want to buy within that$800,000.
5:25
SPEAKER_00: Look, relatively it was okay, but because of the demand was going up very fast, the land prices were going up in Victoria.
5:36
SPEAKER_00: We we saw that change happening in the last six months.
5:39
SPEAKER_00: We saw quite a lot of people were not eligible because their total price was going beyond 800,000.
5:45
SPEAKER_00: So finally, Victorians, you have now uh to spend up to 950,000 doesn't mean that you should be uh, you know, spend your money wisely, I would say.
5:58
SPEAKER_00: But it's a good uh good threshold.
6:01
SPEAKER_02: Now, now on that topic for move.
6:03
SPEAKER_02: Um since we're talking about the first home guarantee scheme.
6:06
SPEAKER_02: I'm gonna pick your brain, I'm gonna put you on the spot, right?
6:09
SPEAKER_02: Because you know everyone's gonna be talking about the benefits about the first home guarantee scheme and whatnot.
6:15
SPEAKER_02: But now, with this, there's also a lot of concerns that have been raised, right?
6:22
SPEAKER_02: And as a property investor yourself, I'm gonna ask you, is it's better a lot of people say it's better to get into the market right now than wait it out because what's gonna happen is now the market's gonna get flooded, right?
6:35
SPEAKER_02: The moment they got rid of the uh income caps or people with higher income who are buying their first home, there'll be a lot of those people getting into the market.
6:45
SPEAKER_02: And of course, what that's gonna do to the prices of property is it's gonna go up.
6:49
SPEAKER_02: Yeah.
6:50
SPEAKER_02: Right?
6:50
SPEAKER_02: So, in your experience, what do you have to say to first home buyers who are still out there thinking, oh, maybe I should wait for property prices to come down?
7:00
SPEAKER_00: Look, guys, if you're gonna wait for the property prices to come down, I don't think uh it'll happen, in my my personal opinion.
7:11
SPEAKER_00: I mean, there are quite a lot of people who are still waiting uh for the last 15 years for the property prices to come down, and uh know that they are paying a very high rental expense thanks to that.
7:24
SPEAKER_00: So first home buyers don't wait for the prices to come down, which it will not happen.
7:30
SPEAKER_00: These are the good examples.
7:31
SPEAKER_00: Government is uh federal government, state governments, they're all uh encouraging first home buyers to get onto the uh property market, buy their first home.
7:40
SPEAKER_00: Uh they also want to encourage people to uh go into the construction, so buy land and build houses so so they can boost the construction industry, create more jobs, and that has ripple effect.
7:54
SPEAKER_00: You know, you we get a good uh economic status, right?
7:57
SPEAKER_00: So these are the things that is uh that are currently happening.
8:01
SPEAKER_00: So if my advice is for strong buyers, work out how much you can pay per month, right?
8:08
SPEAKER_00: Have a budget.
8:10
SPEAKER_00: Um speak to uh or do some research first.
8:14
SPEAKER_00: Where can you afford what what kind of properties have been sold in the last last week or two, right?
8:20
SPEAKER_00: This information is freely available.
8:22
SPEAKER_00: You don't need experts to uh come and tell you these are the properties that were sold in the last three months.
8:28
SPEAKER_00: Trust me, I've seen quite a lot of uh buyers' agents out there these days.
8:32
SPEAKER_00: And um, I mean, look, guys, there's this information is freely available, right?
8:38
SPEAKER_00: Go to realestate.com.au.
8:40
SPEAKER_00: You see the prices, what's been sold, right?
8:44
SPEAKER_00: Um do that research.
8:46
SPEAKER_00: Maybe go for a drive.
8:48
SPEAKER_00: Uh that that area you want to buy and live.
8:52
SPEAKER_00: Have a look at it, you know, fee get a feel.
8:54
SPEAKER_00: You know, if you really want to, if if you're concerned about the security or the safety side of it, you know, maybe lock your doors and go for a drive in the night and see are there any activities Friday night, Saturday nights would be good days to check it out as well.
9:10
SPEAKER_00: Um, you know, have a look at some schools around if you're planning to have children in the future.
9:16
SPEAKER_00: Uh if you're not planning to have children in the future, maybe have a look around some good cafes and restaurants, you know.
9:22
SPEAKER_00: I don't know, you know, uh things like that.
9:25
SPEAKER_00: Just work it out.
9:25
SPEAKER_00: What what whether this area suits your lifestyle.
9:30
SPEAKER_00: And these information and these experiences, you can do it.
9:35
SPEAKER_00: Now, majority of our storm buyers with who are getting the finance approved with TFS, we do help them with certain incise information about we know what's the trend in the area, what are what sort of properties in the market for rent, what sort of properties in the market for sale, what's sold, whatnot, right?
9:55
SPEAKER_00: We give that information just to help these guys out.
9:58
SPEAKER_00: But the main thing is we help them out to work out their borrowing capacity to understand which bank that they can do, go and get the loan approved and and and and and also get that the perfect interest rate.
10:10
SPEAKER_00: Not the lowest sometimes, but the perfect interest rate, right?
10:15
SPEAKER_00: So uh you gotta do that.
10:19
SPEAKER_00: That that is part of your budget.
10:22
SPEAKER_00: So once you do that, uh with these government grants that's available, the schemes that are available, uh it's uh it's a helping hand for you to get onto the property market.
10:34
SPEAKER_00: So I say to you, if you're a first home buyer, it's a it's a very good time to buy as a property investor.
10:41
SPEAKER_00: For me, I am actively looking to buy properties because I know there could be another two or three, maybe four-year cuts.
10:50
SPEAKER_00: Yeah.
10:50
SPEAKER_00: Right?
10:50
SPEAKER_00: That will create more demand into the market.
10:54
SPEAKER_00: Right?
10:54
SPEAKER_00: I'm I'm looking in Victoria actively.
10:56
SPEAKER_00: I mean, I'm always a Victoria I'm always a Victorian, I always invest in Victoria.
11:00
SPEAKER_00: I love it.
11:00
SPEAKER_00: Yes, land tax is not the best, but Victoria hasn't done anything wrong for my portfolio.
11:08
SPEAKER_00: In fact, it helped me to even consider and play around with other states, right?
11:13
SPEAKER_00: So it's a it's a safe place to invest.
11:17
SPEAKER_00: And if you're buying in other states, we have quite a number of clients who are buying their first storms in other states, right?
11:23
SPEAKER_00: Do your research it's the same way.
11:25
SPEAKER_00: There's no difference.
11:26
SPEAKER_00: And if you need help, uh pretty much every one of our Mobius brokers here will spend that time and help help you to figure out what you know where to buy, what to do, and how how to work out your uh uh approval.
11:42
SPEAKER_00: So essentially, these are the main things that you have to do as a first home buyer, right?
11:50
SPEAKER_00: Don't wait.
11:52
SPEAKER_00: Waiting is more is not for real estate, maybe for dating, I don't know.
11:58
SPEAKER_00: Right?
12:00
SPEAKER_00: So, not for real estate.
12:02
SPEAKER_00: You buy and wait.
12:05
SPEAKER_02: You don't wait to buy now uh moving on from that, right?
12:18
SPEAKER_02: So actually, if you would elaborate a bit more on that, now that the uh 5% deposit scheme, the price cap went from 800,000 to 950,000 in Victoria, in Victoria, right?
12:31
SPEAKER_02: If you're a first-home buyer to purchase a property over$750,000 of value, you lose the$10,000 first-term owners' grant.
12:39
SPEAKER_02: Right?
12:40
SPEAKER_02: So there are some buyers who are anticipating more rate cuts to come in the future.
12:45
SPEAKER_02: So they they've calculated in their heads, okay, my repayment's gonna go down.
12:49
SPEAKER_02: I can afford to forego the$10,000 government grant and buy a more expensive property as a first-term buyer.
12:56
SPEAKER_02: That would really uh they're really cutting it thin.
12:59
SPEAKER_02: Imagine the RBA doesn't give more rate cuts.
13:02
SPEAKER_02: Yeah.
13:03
SPEAKER_02: Right?
13:03
SPEAKER_02: So what do you have to say to clients like that who are really playing with the borrowing?
13:08
SPEAKER_02: I mean, they they are risking cutting down on their lifestyles just to have a bigger house.
13:14
SPEAKER_02: Whereas there would be a property that's around that 700,000, 750,000 mark, which has more potential to generate uh equity for them going forward.
13:24
SPEAKER_02: What do you have to say to first home buyers like that that try to max out their borrowing instead of uh taking their time to look for a really good package and then at the emotions echo and purchase property?
13:38
SPEAKER_00: Wiki uh free and question, right?
13:41
SPEAKER_00: Now this happens to young first term buyers, to mid-age first home buyers, to even the matured uh first home buyers.
13:54
SPEAKER_00: Matured when I mean meant by that they've seen a lot of cycles in the market, right?
14:01
SPEAKER_00: So this happens to them too.
14:04
SPEAKER_00: You get carried away, you know.
14:05
SPEAKER_00: I want to buy that, I want to have a five-bedroom house, I want to have that four-bedroom house, I want to, I want to have a man cave.
14:12
SPEAKER_00: I mean, it goes on.
14:14
SPEAKER_02: And most of the time, in place of Sri Lankans, mostly it's it's competition, right?
14:20
SPEAKER_02: The friends might have a pool in the house, or might have a massive living area where they throw parties and they want to do the same thing.
14:28
SPEAKER_02: What they don't understand is they don't compare the circumstances.
14:31
SPEAKER_02: The friends could be having a business on the side that generates passive income for them.
14:36
SPEAKER_02: Yeah, right?
14:36
SPEAKER_02: Or they would be having more savings that they bring over from, let's say, Sri Lanka.
14:42
SPEAKER_02: So but what advice do you have to give as the as you and Sonali all started from the ground up and built your property portfolio?
14:50
SPEAKER_02: And we'll show you all that instances where emotions would have taken over your decision making.
14:56
SPEAKER_02: But then of course I know you, you like to stick to numbers.
14:58
SPEAKER_02: Sonali also likes to make that the numbers make sense, and that's how you guys base your decision.
15:04
SPEAKER_02: So, what advice would you give for Mbas along along those lines?
15:09
SPEAKER_00: We see this is now we we we me and Sonali got into the property uh industry we were 29.
15:20
SPEAKER_00: Alright, so 11 years later, so that tells my age I'm 40.
15:24
SPEAKER_00: Right?
15:24
SPEAKER_00: 11 years later, we still use the same strategy.
15:29
SPEAKER_00: I call it 2080 rule.
15:32
SPEAKER_00: 20% regardless, non-negotiable savings.
15:38
SPEAKER_00: 80% you can expense.
15:41
SPEAKER_00: Now, out of that 80%, there are percentages that you expense.
15:45
SPEAKER_00: Right?
15:45
SPEAKER_00: You you you get to expense about 40% or maybe 45% of that 80% towards a mortgage repayment.
15:55
SPEAKER_00: Now, this is an argument that this is this is not an argument, this is a statement I have made a few places.
16:03
SPEAKER_00: Um ended up being ended up being argu ended up ended up being arguments as well with this because there are certain valid points that some people did raise to me and say, look, yes, you could have done it big before, but the rates are now high, the you know the inflation's go up, uh living expenses are much more than when you guys started 11 years ago or 10 years ago.
16:30
SPEAKER_00: Understand?
16:32
SPEAKER_00: I get it, but you also need to understand there are more opportunities right now for you.
16:39
SPEAKER_00: When when we started 10 years ago, I didn't have Uber driving.
16:44
SPEAKER_00: You think wish when I had Uber driving, you think I won't do it?
16:49
SPEAKER_00: Right?
16:50
SPEAKER_00: I wish if there was Uber driving.
16:53
SPEAKER_00: Imagine that, man, I would have cranked some money here.
16:57
SPEAKER_00: Okay?
16:58
SPEAKER_00: Because there are a lot of opportunities at the at this same same of this time that you guys are living.
17:04
SPEAKER_00: So don't don't just look at it in that corner.
17:08
SPEAKER_00: It's all about your lens.
17:10
SPEAKER_00: If your lens is not showing you how to make money, maybe it's time to change your lens.
17:16
SPEAKER_00: Right?
17:16
SPEAKER_00: Yeah, simple as that.
17:18
SPEAKER_00: So first home buyers, I always say 20%, what your income needs to go to savings because that that that is important.
17:27
SPEAKER_00: 80% out of the 80%, if you can play around with 40 to 45% towards a mortgage, you're in a very good space.
17:36
SPEAKER_00: There's a reason I'm telling you to do this, because once you start investing in other investment properties, this 40-45% is gonna increase towards 50%, 52%, 53%, 54%.
17:48
SPEAKER_00: Now, if you if you're good with your numbers, you can play with 1 to 2% increments.
17:54
SPEAKER_00: Now, every 1 to 2% increment from your income is a property that you're adding to your portfolio.
18:01
SPEAKER_00: So then if you look at the compounding growth, compounding net wealth that you're building, it's it's very good.
18:10
SPEAKER_00: Right?
18:11
SPEAKER_00: So I think there was an episode that Sanali uh discussed about investing or uh having your savings in a savings account versus having your savings in a property.
18:24
SPEAKER_00: Right.
18:25
SPEAKER_00: Same theory.
18:27
SPEAKER_00: She's coming from financial planning uh, and that uh that that that's the length she looks at.
18:34
SPEAKER_00: I come from uh street hustling.
18:38
SPEAKER_00: Right?
18:39
SPEAKER_00: That's what I look at.
18:40
SPEAKER_00: If I have a hundred bucks, I'll put 20 bucks for a rainy day and let me play around with my 80.
18:47
SPEAKER_00: Right?
18:48
SPEAKER_00: That's the simple mathematics to me.
18:51
SPEAKER_00: So when you apply the same thing for your first home, guys, how much you need to pay for your mortgage, that's where you gotta stick it.
19:00
SPEAKER_00: You have to stick with it.
19:01
SPEAKER_00: Yeah, you cannot go at 70% just because your friend has a bigger house, he may have a larger income.
19:10
SPEAKER_00: Right?
19:11
SPEAKER_00: So you can't compare yourself with your friend or your neighbor.
19:14
SPEAKER_00: You c you cannot do it.
19:16
SPEAKER_00: Stop comparing.
19:17
SPEAKER_00: I mean, fellow Sri Lankans, you do that.
19:19
SPEAKER_00: Why?
19:20
SPEAKER_00: You all got the same color skin, wrong?
19:23
SPEAKER_02: I mean, I don't know about the color skin.
19:25
SPEAKER_02: You know, I'm I'm more chocolate brown, they okay.
19:30
SPEAKER_00: I mean these are shades.
19:33
SPEAKER_00: No, I'm you know what I'm saying?
19:34
SPEAKER_00: You know, you you have the same house, you can have different colors.
19:38
SPEAKER_00: Your facade may look very different to to the same, you know, how many how many houses in Metric on builds in the same floor plan?
19:45
SPEAKER_02: Plus, honestly speaking, how much time do you actually spend at home?
19:50
SPEAKER_02: You wake up, you go to work, right?
19:52
SPEAKER_02: You spend more time you spend a lot of time on the road, yeah.
19:55
SPEAKER_02: You come home and you watch a movie and you sleep, you cook a meal.
19:59
SPEAKER_02: That's it.
19:59
SPEAKER_02: Even on the weekends, most most people don't spend time at home, they're out with their friends.
20:04
SPEAKER_02: So, to actually think of it from a practical sense, it's better to go with the property that where the numbers make sense as opposed to where your emotions are allowed to run wild.
20:17
SPEAKER_00: Absolutely, absolutely, Vish, because the the emotions in my experience, again, this is not a it's not financial plan advice, okay?
20:30
SPEAKER_00: Please understand this.
20:31
SPEAKER_00: Emotions to me is an expense.
20:35
SPEAKER_00: Okay?
20:36
SPEAKER_00: I know there's gonna be a lot of people gonna talk about this.
20:39
SPEAKER_00: What the hell, man?
20:40
SPEAKER_00: What are you talking about?
20:41
SPEAKER_00: Emotion is always an expense to me.
20:43
SPEAKER_02: Um but I'm pretty sure you're not talking about love, though, right?
20:46
SPEAKER_02: This is Oh, if you really think about it, that's an expense as well, right?
20:51
SPEAKER_02: I mean, your your wife could might be listening to this podcast.
20:55
SPEAKER_00: Uh part of this podcast, she I'm pretty sure she she agrees to these kind of things.
21:00
SPEAKER_00: It's it's it's an expense, right?
21:02
SPEAKER_00: When when your children come into your life, it becomes an expense.
21:05
SPEAKER_00: Not that you don't love them, but that's an expense.
21:11
SPEAKER_02: Yeah, when you look at it on a balance sheet, yeah, you're right, that that is an expense.
21:14
SPEAKER_02: Yeah.
21:15
SPEAKER_00: So if you can be in a position to to give your children, your your your wife or girlfriend or your boyfriend or you know, uh a life that they are gonna be loving as well by creating the wealth, by managing your money correctly.
21:37
SPEAKER_00: That's the place I would say you you gotta be.
21:40
SPEAKER_00: As a first home buyer, you gotta start there.
21:44
SPEAKER_00: Right?
21:45
SPEAKER_00: Yeah.
21:45
SPEAKER_02: I mean the start is always the ours, right?
21:47
SPEAKER_00: Absolutely.
21:48
SPEAKER_00: That's why we ask so many questions questions if you're a first one buyer.
21:53
SPEAKER_00: But if you're an investor banks, then us we don't ask that much of questions.
21:58
SPEAKER_02: I mean, most of our investors.
22:00
SPEAKER_02: Investment property clients, as once you tell them the numbers make sense, they're like, Yeah, Pramudan, they don't even they don't even look at the facade, they don't even look at the builder or the property.
22:08
SPEAKER_02: They're like, Yeah, Pramu, if you say the numbers make sense, let's do it.
22:11
SPEAKER_02: And that's how you help so many of their clients build their property portfolio.
22:15
SPEAKER_02: Because you give them the same strategies you use for yourself.
22:18
SPEAKER_02: So exactly.
22:20
SPEAKER_00: It's it's it I call these guys uh uh set and forgetting, Mister.
22:25
SPEAKER_00: Uh one one of our episodes we we talked about.
22:29
SPEAKER_00: Um so but as a first home buyer, you you have to make sure you you you you have done your numbers correctly, right?
22:39
SPEAKER_00: That that trust me, if you if you really want to go down this path, guys, use that 20% savings, 80% on expense.
22:46
SPEAKER_00: Out of your 80%, try and work out 40 to 45% as your mortgage repayment.
22:52
SPEAKER_00: Now, one of the other uh things I want to tell you, tell you for strong buyers is if it's you may work out your numbers on a on a lower rate.
23:01
SPEAKER_00: Now we are on a market where the rates are coming down.
23:04
SPEAKER_00: We have, you know, currently I think the lowest rate is about 4.89.
23:08
SPEAKER_00: Um, when I saw it in the morning, it was 4.89.
23:11
SPEAKER_00: It's it's low, right?
23:14
SPEAKER_00: Compared to where we were coming from.
23:16
SPEAKER_00: So don't don't work out your numbers at 4.89 and say, oh, that means I can go and borrow a bit more.
23:22
SPEAKER_00: Guys, come and maybe work it out at 5.29.
23:28
SPEAKER_00: Or 5.50.
23:29
SPEAKER_00: Yeah.
23:30
SPEAKER_02: Because then you're always keeping that buffer for you have a buffer.
23:33
SPEAKER_00: Yeah.
23:34
SPEAKER_00: You have a buffer.
23:35
SPEAKER_00: You have a buffer on top of a buffer.
23:38
SPEAKER_00: If the rate goes up to seven, you're good.
23:40
SPEAKER_00: You're fine.
23:41
SPEAKER_00: Like our plan.
23:42
SPEAKER_02: Yes.
23:44
SPEAKER_02: Awesome, Pramo.
23:45
SPEAKER_02: So I think this has been a very in-depth uh conversation for first home buyers, for first home buyers, right?
23:53
SPEAKER_02: Uh we reflected on the newly launched first owner guarantee scheme.
23:57
SPEAKER_02: We gave some strategies for first stone buyers.
24:01
SPEAKER_02: We told them to let the numbers do the talking.
24:03
SPEAKER_02: You you gave them a plan on how to save and manage the expenses.
24:07
SPEAKER_02: Um I guess I don't have any further questions for this episode.
24:13
SPEAKER_02: Do you have any other questions?
24:18
SPEAKER_00: Not questions.
24:19
SPEAKER_00: I w I wanted to touch base a few little things.
24:21
SPEAKER_00: When especially on the first home loan deposit scheme uh or home home home guarantee scheme, guys.
24:27
SPEAKER_00: One thing I couldn't touch base before was uh Queensland.
24:30
SPEAKER_00: Uh, if you're in Queensland, up to 900,000 you can go and buy.
24:35
SPEAKER_00: You're eligible.
24:35
SPEAKER_00: South Australia, 850,000, Western Australia, um uh sorry, 850,000 for Western Australia as well, and and 700,000 in Tasmania.
24:47
SPEAKER_00: Now, what I wanted to touch base very quickly, um, I'll go rapid pace here.
24:54
SPEAKER_00: Uh, property prices will go up.
24:57
SPEAKER_00: This kind of um uh uh markets I have seen twice.
25:03
SPEAKER_00: So this will create, as we discussed before, quite a lot of people, more borrowing power, more affordability.
25:09
SPEAKER_00: They're gonna come in.
25:10
SPEAKER_00: Spring market is here already, right?
25:13
SPEAKER_00: So there's gonna be a lot of people.
25:15
SPEAKER_00: You will see auctions are like pretty cool, a lot of people out there.
25:20
SPEAKER_00: You know, there's a bit of a buzz around these auctions, especially in uh September in Melbourne.
25:26
SPEAKER_02: And also like properties that get listed on the market, they spend less time.
25:30
SPEAKER_02: Yep, listers will leverage, uh, listing time is reducing as well.
25:35
SPEAKER_02: Yep.
25:35
SPEAKER_00: The data days on days on the market is reducing.
25:38
SPEAKER_00: Right?
25:38
SPEAKER_00: Bindo's discounts are reducing, by the way.
25:42
SPEAKER_00: This is why a lot of people end up paying a bit more.
25:45
SPEAKER_02: Most of the properties that had rebates on it now, magically the rebates have reduced by half or been taken off.
25:53
SPEAKER_00: Yep.
25:53
SPEAKER_00: Right.
25:54
SPEAKER_00: So so the property prices will go up, especially in Sydney and Melbourne.
25:59
SPEAKER_00: End of the day, guys, this is where a lot of people want to live.
26:01
SPEAKER_00: No hard feelings to Queensland and South Australia and Western Australia, but you know, to this date, Sydney and Melbourne is considered as the global cities.
26:09
SPEAKER_02: Yes.
26:10
SPEAKER_02: And one of the main catalysts for the property prices in Melbourne is immigration.
26:14
SPEAKER_02: Exactly.
26:15
SPEAKER_02: And they come in large numbers.
26:17
SPEAKER_02: These guys need houses.
26:18
SPEAKER_02: They they're not buying a house, they are renting a house.
26:20
SPEAKER_02: Yes.
26:21
SPEAKER_02: Yeah.
26:22
SPEAKER_00: So so guys, um, there's gonna be a lot of movement.
26:25
SPEAKER_00: Be prepared for it.
26:27
SPEAKER_00: How to get prepared if you need more information, do get in touch with our team.
26:31
SPEAKER_00: Um we have a we have a good set of team here, uh good set of individuals, uh, from you know 20 years of experience to uh experiences in in relationship management of uh high net birth clients, uh medical side of it.
26:47
SPEAKER_00: Um so so there are quite a number of people.
26:50
SPEAKER_00: Come and you know, say hi to us.
26:51
SPEAKER_00: We'll be more than happy to help you.
26:54
SPEAKER_00: Last thing, before I uh say goodbye to you and until for the next uh episode, lender risk assessment.
27:03
SPEAKER_00: Now, everybody thinks just because the rates are coming down, government is giving you know free money or free free entry points, you know, come, come, come, buy, buy, buy.
27:15
SPEAKER_00: Lender risk assessment goes up.
27:18
SPEAKER_00: Please, please, please understand this.
27:21
SPEAKER_02: Lenders you can elaborate more on lender risk assessment to some of our first home buyers who might not know.
27:27
SPEAKER_00: Yeah.
27:28
SPEAKER_00: So very simply, uh now lenders can understand there's a that's a big market here, so we can start lending for quite a lot of people.
27:36
SPEAKER_00: So now one what they're gonna look at, they're not just gonna give money to every single person.
27:42
SPEAKER_00: They're going to be checking you out quite a lot.
27:48
SPEAKER_02: So check checking you out quite a lot.
27:50
SPEAKER_00: Yeah, I gotta check you out quite a lot.
27:51
SPEAKER_00: Trust me, they will even go to your Facebook.
27:55
SPEAKER_00: If it's public.
27:57
SPEAKER_00: Okay.
27:57
SPEAKER_00: Um that's called that's called risk risk management or risk assessment.
28:02
SPEAKER_00: So they want to know who you are.
28:04
SPEAKER_00: They want to know uh how how are you earning your income and how stable is your uh uh salary is.
28:11
SPEAKER_00: Is your employer stable?
28:14
SPEAKER_02: Right.
28:15
SPEAKER_02: Yeah, because I'm pretty sure you know uh now with all these rate cuts coming in, that opens the doors for more for more mortgage brokers, I would say, dodgy mortgage brokers to do 50 things and let's not let's not let's you know touch on those uh controversial subjects, we see.
28:35
SPEAKER_00: But what we are doing here, we're giving information for for people who want to get get into the uh property market, right?
28:41
SPEAKER_00: So lender risk assessment is very important.
28:45
SPEAKER_00: This is going to happen.
28:46
SPEAKER_00: They're gonna put further buffers, they're gonna they're gonna ask more questions, they're gonna come up with even more uh uh documentation process.
28:55
SPEAKER_00: This is this is normal.
28:57
SPEAKER_00: This happens in when the rates were 1.99 as well, right?
29:00
SPEAKER_00: A lot of people have forgotten about it.
29:02
SPEAKER_00: It wasn't that far off three, four years ago, by the way.
29:05
SPEAKER_00: Um, this is gonna happen.
29:07
SPEAKER_00: So keep that in mind.
29:09
SPEAKER_00: Just because the rates have come down doesn't mean that you're gonna have 150,000 more borrowing capacity.
29:14
SPEAKER_00: They will vet you up, right?
29:16
SPEAKER_00: They want to know who you are before they lend you money.
29:19
SPEAKER_00: But if you if you have done your um uh due diligence, or if you're if you're done what you're supposed to do, saving right, earning correctly, having good habits with your money, yeah, right, you have a very good chance to get into the market um and and start building this this portfolio I always talk about.
29:41
SPEAKER_00: That's the game.
29:43
SPEAKER_02: That's the game indeed.
29:45
SPEAKER_02: So, with that being said, I think we can uh we can end this episode.
29:50
SPEAKER_02: I think so.
29:51
SPEAKER_02: I think there's a lot of information for the yeah.
29:53
SPEAKER_02: Alright, ladies and gentlemen, thank you for tuning in to the TFS Wordcast, and we'll see you guys on the next episode.
29:59
SPEAKER_01: Thank you for tuning in to another episode of the TFS Podcast, where we turn knowledge into action and big goals into real results.
30:08
SPEAKER_01: Now, don't forget to like and subscribe and share this episode with someone working towards their next financial step.
30:18
SPEAKER_01: Now, with that being said, until next time, keep building.