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Transcript

Make Your Property Dreams Come True · A Little Bit Richer

• 0:01
  Kia: Kia here. Welcome back to A Little Bit Richer. Property
• 0:04
  Kia: is such a big thing for Brits. It can be
• 0:06
  Kia: so difficult to get on the property ladder, but sometimes it
• 0:10
  Kia: feels like everyone else is moving into their beautiful new home -
• 0:13
  Kia: judging by their Instagram posts anyway. But if you don't
• 0:16
  Kia: own your own home, are you actually behind in your
• 0:18
  Kia: financial journey? Is it a good time to buy right now?
• 0:22
  Kia: What are some of the things that you can do
• 0:24
  Kia: to help make the buying process a little easier? With
• 0:27
  Kia: me to discuss all of this and more is Tayo Oguntonade,
• 0:31
  Kia: a mortgage broker, property expert, investor, and influencer. Okay. Tayo, property
• 0:38
  Kia: prices are high, and mortgage rates have really rocketed. Is
• 0:43
  Kia: buying a house now still a good idea?
• 0:47
  Tayo Oguntonade: I have to chuckle at first! It's so funny. When you were doing the intro and saying
• 0:49
  Tayo Oguntonade: all of those questions, it literally felt like you were
• 0:52
  Tayo Oguntonade: reading my DMs. Those are all of the questions I
• 0:55
  Tayo Oguntonade: get. It's great that we're addressing that today. I think the
• 0:57
  Tayo Oguntonade: first thing to acknowledge is that it's incredibly difficult for
• 1:00
  Tayo Oguntonade: all aspiring first- time buyers right now. We look at
• 1:03
  Tayo Oguntonade: the last three years or so. The beginning of the pandemic,
• 1:06
  Tayo Oguntonade: you could put down a 5% deposit. All of a sudden,
• 1:09
  Tayo Oguntonade: in a matter of days, that was tripled to 15%.
• 1:11
  Tayo Oguntonade: When they actually went back to 5% again, all of
• 1:14
  Tayo Oguntonade: a sudden, house prices were shooting up because they introduced
• 1:17
  Tayo Oguntonade: stamp duty holiday, mortgage payment holiday, and things like that. Then,
• 1:20
  Tayo Oguntonade: when house prices actually started slowing down up to today,
• 1:23
  Tayo Oguntonade: we saw that mortgage rates were increasing rapidly as well.
• 1:27
  Tayo Oguntonade: It's really, really been a tough time. It feels like
• 1:29
  Tayo Oguntonade: they've been pulled from pillar to post. I guess the
• 1:32
  Tayo Oguntonade: first thing to acknowledge is that, yes, it is a very, very difficult
• 1:35
  Tayo Oguntonade: time for first- time buyers right now. But I would
• 1:37
  Tayo Oguntonade: say that if it is your goal to own your
• 1:40
  Tayo Oguntonade: own property and buy your first property, you can still
• 1:43
  Tayo Oguntonade: buy it right now. It is still possible. I always say
• 1:46
  Tayo Oguntonade: that you shouldn't try and time the market. If you can
• 1:50
  Tayo Oguntonade: afford it... What I mean by afford is afford to buy
• 1:53
  Tayo Oguntonade: the house and afford the monthly payments on a long-
• 1:55
  Tayo Oguntonade: term basis, and it is one of your goals. Definitely
• 1:58
  Tayo Oguntonade: go ahead, in my opinion.
• 1:59
  Kia: I think that's a really good point that you make. If
• 2:03
  Kia: you try and time it's always not quite the right
• 2:06
  Kia: time. It is just, like you said, getting in there.
• 2:08
  Kia: If you're ready and you can afford it, jumping in
• 2:10
  Kia: and doing it.
• 2:11
  Tayo Oguntonade: Absolutely.
• 2:13
  Kia: There's been some research done recently by L egal and General
• 2:16
  Kia: that has found that, this year, financial support is more
• 2:20
  Kia: important than ever. Over two- thirds of London homeowners received
• 2:24
  Kia: financial support from family or friends. I'm going to ask you,
• 2:28
  Kia: is it impossible if you don't have any financial help
• 2:32
  Kia: from friends or family?
• 2:34
  Tayo Oguntonade: It's not impossible. However, we cannot ignore the numbers and
• 2:36
  Tayo Oguntonade: the research. I love numbers. I love any research. Do you know why?
• 2:40
  Tayo Oguntonade: Because numbers have no opinion. You just have to acknowledge them.
• 2:43
  Tayo Oguntonade: We have to take them for what they are basically.
• 2:45
  Tayo Oguntonade: Those numbers are basically saying that there's a reason why
• 2:49
  Tayo Oguntonade: so many people are leaning on family or leaning on
• 2:53
  Tayo Oguntonade: siblings or friends or colleagues and buying with someone or
• 2:55
  Tayo Oguntonade: getting financial assistance from someone. That's because it is becoming
• 2:59
  Tayo Oguntonade: increasingly more difficult. Because I guess if you buy by yourself,
• 3:03
  Tayo Oguntonade: a lot of the time, first- time buyers feel that
• 3:05
  Tayo Oguntonade: they do have to sacrifice something. I'll come onto that.
• 3:09
  Tayo Oguntonade: But what I would say is that whenever people think about
• 3:11
  Tayo Oguntonade: financial assistance, a lot of the time, they do often
• 3:14
  Tayo Oguntonade: think about the bank of Mum and Dad. When people
• 3:16
  Tayo Oguntonade: think about the bank of Mum and Dad, they always
• 3:18
  Tayo Oguntonade: think that, look, they've come from an ultra- wealthy family,
• 3:23
  Tayo Oguntonade: but that's not often the case. This is why platforms
• 3:26
  Tayo Oguntonade: like Bricks With Tips are made, and platforms like this podcast, right, because
• 3:30
  Tayo Oguntonade: education is key. A lot of people are using that financial assistance,
• 3:34
  Tayo Oguntonade: but it stems from education. If I paint a scenario,
• 3:37
  Tayo Oguntonade: there might be somebody who has a job. They earn
• 3:40
  Tayo Oguntonade: 30,000 pounds. They're working towards a promotion that will pay them 40,
• 3:43
  Tayo Oguntonade: 000 pounds. However, they know that they're going to get
• 3:47
  Tayo Oguntonade: that promotion in maybe the next two or three years effectively.
• 3:50
  Tayo Oguntonade: They've been doing research on what it takes to buy a property.
• 3:53
  Tayo Oguntonade: They know that, even at 40, 000 pounds, they still won't
• 3:56
  Tayo Oguntonade: be able to afford the property that they want to
• 3:58
  Tayo Oguntonade: buy effectively because they know that lenders will lend a
• 4:00
  Tayo Oguntonade: certain amount, times their income. Also, via being educated, what
• 4:05
  Tayo Oguntonade: they do know is that... " Hold on. My sister earns
• 4:07
  Tayo Oguntonade: 30K as well. If we combine our salaries, it's 60,000 pounds."
• 4:12
  Tayo Oguntonade: That education allows people to act early, basically. What we're
• 4:16
  Tayo Oguntonade: experiencing at the moment is that a lot of people
• 4:18
  Tayo Oguntonade: just don't know. They just pull the wool over their eyes.
• 4:20
  Tayo Oguntonade: They're like. " It's difficult." They listen to the media. " It's impossible."
• 4:24
  Tayo Oguntonade: They don't take any action. Then, just to touch on
• 4:26
  Tayo Oguntonade: what you said about is it impossible. It is still
• 4:29
  Tayo Oguntonade: possible to do it without financial assistance, but there are
• 4:31
  Tayo Oguntonade: things that you may have to sacrifice. Maybe that's moving
• 4:34
  Tayo Oguntonade: a little bit further out. Maybe that is opting for
• 4:38
  Tayo Oguntonade: a two- bedroom flat rather than your dream of a three-
• 4:40
  Tayo Oguntonade: bedroom house effectively. Yeah. I definitely do think that it is
• 4:44
  Tayo Oguntonade: still possible. But in some cases, there may be an
• 4:46
  Tayo Oguntonade: element of sacrifice.
• 4:47
  Kia: I think I love the point that you made about
• 4:50
  Kia: just learning and understanding. I think it is knowing what
• 4:53
  Kia: can you do with the money that I've got, the money
• 4:55
  Kia: that I'm on, the money that I've saved, what can
• 4:57
  Kia: I realistically afford? I think that's the keyword. Realistically.
• 5:00
  Tayo Oguntonade: Absolutely.
• 5:00
  Kia: Because, like you said, I think everyone dreams about their
• 5:03
  Kia: first home being a mansion somewhere. But realistically, your budget
• 5:06
  Kia: may not stretch to that. I think that is a
• 5:09
  Kia: key point. I want to go off the back of
• 5:10
  Kia: something that you said. Let's talk about maybe buying with
• 5:13
  Kia: someone then because I've spoken to people who have bought
• 5:17
  Kia: with family. I think that's probably a bit more common.
• 5:20
  Kia: But then, what about people buying with friends? What would you
• 5:22
  Kia: say? Is that a good way to look at... maybe
• 5:25
  Kia: people rally their friends together and say, " Let's buy property
• 5:28
  Kia: together"? Or people will look at their siblings?
• 5:30
  Tayo Oguntonade: Yeah. I definitely do think it's a good way to go.
• 5:32
  Tayo Oguntonade: But you have to put certain things in place. I
• 5:34
  Tayo Oguntonade: think that a lot of people are scared of it
• 5:36
  Tayo Oguntonade: because buying a property is a long- term commitment. However,
• 5:40
  Tayo Oguntonade: in this day and age, renting is a long- term commitment,
• 5:42
  Tayo Oguntonade: especially if you're renting in places like London because, a
• 5:45
  Tayo Oguntonade: lot of the time, you can't just jump around because
• 5:47
  Tayo Oguntonade: renting in London is incredibly expensive. Every single time you
• 5:50
  Tayo Oguntonade: change where you're renting, there is a cost attached to
• 5:52
  Tayo Oguntonade: that as well, effectively. I do think that that is something
• 5:55
  Tayo Oguntonade: to consider. I guess when you are buying, you are
• 5:58
  Tayo Oguntonade: building equity over time, whether that's you paying down your
• 6:00
  Tayo Oguntonade: mortgage or, depending on the market, the property increasing in
• 6:04
  Tayo Oguntonade: value effectively. There are pros and cons of buying and
• 6:07
  Tayo Oguntonade: renting that we can balance against each other. But in
• 6:09
  Tayo Oguntonade: the main, biased I will be, buying is probably what you
• 6:13
  Tayo Oguntonade: want to do just to ensure that you're building that equity
• 6:16
  Tayo Oguntonade: and you've got more freedom to do what you want
• 6:19
  Tayo Oguntonade: with your property. Buying with friends, buying with siblings, I
• 6:21
  Tayo Oguntonade: am in support of it. I think it can allow people
• 6:24
  Tayo Oguntonade: to achieve the goal that they're looking at.
• 6:26
  Kia: Okay. Well, we never know. We might have some siblings
• 6:28
  Kia: or some friends after hearing this banding together to buy
• 6:31
  Kia: a house, which would be lovely to hear, wouldn't it?
• 6:33
  Kia: We're going to come on to... Let's assume that our
• 6:36
  Kia: listeners have decided that buying a house is what's right
• 6:39
  Kia: for them. That's the right decision for them. What options/
• 6:42
  Kia: schemes are available to make that goal more achievable for them?
• 6:46
  Tayo Oguntonade: Right. There are quite a few options and schemes: some
• 6:49
  Tayo Oguntonade: that people know about and some that people don't know about.
• 6:53
  Tayo Oguntonade: The ones that people probably know about the most are
• 6:54
  Tayo Oguntonade: government schemes. For example, some of the two most popular
• 6:58
  Tayo Oguntonade: ones are shared ownership. I always give the example. Shared
• 7:01
  Tayo Oguntonade: ownership is effectively you buying a share of a property
• 7:05
  Tayo Oguntonade: and renting the rest of the property. A really easy
• 7:08
  Tayo Oguntonade: scenario is that, in London, there's a flat that's 400,000 pounds.
• 7:13
  Tayo Oguntonade: You can buy a 25% share of that flat, which means
• 7:16
  Tayo Oguntonade: that you buy 100K of that flat effectively. You rent
• 7:19
  Tayo Oguntonade: the remaining three- quarters of that flat effectively. The reason
• 7:23
  Tayo Oguntonade: why it's popular is because it's got really, really low
• 7:25
  Tayo Oguntonade: startup costs. You don't need to put a huge amount
• 7:26
  Tayo Oguntonade: down because, in actual fact, when you're buying that 25%
• 7:30
  Tayo Oguntonade: share at 100K, you can put down a deposit as
• 7:33
  Tayo Oguntonade: low as 5%, which means that you can put down 5,
• 7:36
  Tayo Oguntonade: 000 pounds to live in a 400K flat. Naturally, that's
• 7:40
  Tayo Oguntonade: going to get a lot of attention. Another scheme that a lot of
• 7:43
  Tayo Oguntonade: people know about is Right to Buy. That's when you
• 7:45
  Tayo Oguntonade: can buy the council flat that you live in if
• 7:48
  Tayo Oguntonade: you've lived in there for three years or more effectively.
• 7:50
  Tayo Oguntonade: There are some government schemes that are less known. For example,
• 7:53
  Tayo Oguntonade: there's one called First Home Scheme, where you can get
• 7:56
  Tayo Oguntonade: between 30 and 50% off your first home. There's another one called
• 8:00
  Tayo Oguntonade: Help to Build because Help to Buy no longer exists.
• 8:02
  Tayo Oguntonade: Help to Build can actually help you finance the land
• 8:06
  Tayo Oguntonade: and the build of a self- build property, which is really,
• 8:08
  Tayo Oguntonade: really interesting. Then, another one that a lot of people
• 8:10
  Tayo Oguntonade: don't know is that there are actually some schemes that
• 8:13
  Tayo Oguntonade: are offered by lenders, first of all, and definitely have
• 8:16
  Tayo Oguntonade: a look and check those out, and also home builders
• 8:18
  Tayo Oguntonade: as well because there is an incentive for them to
• 8:20
  Tayo Oguntonade: sell their homes.
• 8:21
  Kia: That's really good to hear you share all those different
• 8:24
  Kia: schemes because I think sometimes, as a first- time buyer...
• 8:27
  Kia: It is overwhelming, anyway, for anyone trying to buy a property,
• 8:30
  Kia: but especially if you're trying to understand what's going to
• 8:32
  Kia: work for you, knowing that there's so many options out
• 8:34
  Kia: there. It's just finding the right one for you. Maybe
• 8:36
  Kia: it's shared ownership, maybe it's first homes, maybe it's something
• 8:39
  Kia: else. But I think it is good to know. One
• 8:41
  Kia: of my favorite schemes, which isn't necessarily for buying, but... Do you know what I'm
• 8:46
  Kia: going to say? What scheme I'm going to say?
• 8:47
  Tayo Oguntonade: I know what you're going to say.
• 8:48
  Kia: What am I going to say?
• 8:48
  Tayo Oguntonade: It begins with L.
• 8:48
  Kia: It does.
• 8:48
  Tayo Oguntonade: It ends with ISA.
• 8:48
  Kia: It does. You got it bang on. My favourite scheme is the Lifetime ISA because
• 8:59
  Kia: it's just a great savings vehicle. For anyone who doesn't know,
• 9:01
  Kia: the Lifetime ISA is a savings vehicle. It's superseded the Help to Buy ISA,
• 9:06
  Kia: which closed, I think, in 2019. You can use that
• 9:10
  Kia: to save for your first house. You put money in
• 9:12
  Kia: there up to 4, 000 pounds per tax year. You can
• 9:15
  Kia: keep saving that money. The government will put 25% on
• 9:18
  Kia: top of anything that you save up until that amount.
• 9:21
  Kia: You can use that towards your deposit. It's also important
• 9:23
  Kia: to note. You have to have it open for at
• 9:24
  Kia: least a year, but you can use it. But it
• 9:25
  Kia: is a great way to save money and get free money.
• 9:28
  Kia: That's always my thing. Anytime we can get some extra
• 9:30
  Kia: money towards our financial goals, I'm all for it. The Lifetime
• 9:34
  Kia: ISA is a great way to do that from the government.
• 9:37
  Kia: I think all those schemes combined, there is a lot
• 9:39
  Kia: of hope for anyone listening when it comes to buying
• 9:42
  Kia: first property.
• 9:42
  Tayo Oguntonade: Absolutely. To add to what you said about the Lifetime ISA, the difference between Lifetime ISA and all of those
• 9:46
  Tayo Oguntonade: other schemes is that, with the Lifetime ISA... It can be applied to property...
• 9:49
  Kia: To any property.
• 9:50
  Tayo Oguntonade: Exactly that. That's really, really nice, the flexibility of that.
• 9:53
  Kia: Yeah, I love that. Right. To wrap up then, with property
• 9:58
  Kia: in mind, I'm going to ask you the question I
• 9:59
  Kia: ask all of our guests. What are the three quick
• 10:03
  Kia: tips that you'd recommend to our listeners to help them
• 10:05
  Kia: get a little bit richer?
• 10:07
  Tayo Oguntonade: With property in mind, getting a little bit richer... Okay,
• 10:10
  Tayo Oguntonade: cool. I'm big on education. Knowing what you're doing is
• 10:13
  Tayo Oguntonade: key effectively. My first tip is speak to a mortgage
• 10:16
  Tayo Oguntonade: broker. In the property space, a lot of things aren't
• 10:19
  Tayo Oguntonade: free. Getting a survey done isn't free. Getting a valuation
• 10:22
  Tayo Oguntonade: done isn't free. Getting a quote from an architect isn't
• 10:25
  Tayo Oguntonade: free. However, a mortgage broker will actually speak to you
• 10:27
  Tayo Oguntonade: for free. It's very, very rare that you can get
• 10:30
  Tayo Oguntonade: such a tailored and one- to- one service for free
• 10:33
  Tayo Oguntonade: in any other industry. A mortgage broker will assess your
• 10:36
  Tayo Oguntonade: current situation and tell you what you can and can't
• 10:38
  Tayo Oguntonade: do. My second tip... Go on viewings, whether they're virtual
• 10:42
  Tayo Oguntonade: viewings or viewings in person. I think that one mistake
• 10:45
  Tayo Oguntonade: that a lot of people make is that they fix
• 10:47
  Tayo Oguntonade: their credit. They save their money. They get their salary
• 10:50
  Tayo Oguntonade: up. Then, they've been doing that for two or three
• 10:52
  Tayo Oguntonade: years. Then, the problem is that they spend nine months
• 10:55
  Tayo Oguntonade: after that working out what type of property they want.
• 10:58
  Tayo Oguntonade: While they're working that out, their budget is going all over
• 11:00
  Tayo Oguntonade: the place as well. Find out what you like in
• 11:02
  Tayo Oguntonade: a property. Find out what you love. Find out what
• 11:05
  Tayo Oguntonade: you hate. Find out what you're willing to compromise on.
• 11:07
  Tayo Oguntonade: That way, you know exactly how much money you need
• 11:09
  Tayo Oguntonade: because you know the type of property you want in what area.
• 11:12
  Tayo Oguntonade: It goes to education as well. Wherever you consume any
• 11:15
  Tayo Oguntonade: of your content, whether you're on Twitter, whether you're on
• 11:17
  Tayo Oguntonade: Instagram, whether you use YouTube, or maybe you read print,
• 11:21
  Tayo Oguntonade: just curate everything that you do and make it property-
• 11:24
  Tayo Oguntonade: focused effectively. You'll pick up new tips. You'll pick up
• 11:27
  Tayo Oguntonade: new ways to overcome challenges that you are actually facing because one
• 11:31
  Tayo Oguntonade: of the key things is... And you alluded to it a
• 11:33
  Tayo Oguntonade: bit earlier when we were speaking, is that once you
• 11:35
  Tayo Oguntonade: know about all of these different schemes, the key thing
• 11:38
  Tayo Oguntonade: is that you can now apply it to your personal situation.
• 11:40
  Kia: You gave some great tips. I think the key takeaways
• 11:43
  Kia: that I pull from this episode is, one, education is
• 11:46
  Kia: key. Make sure you research/ you understand what you're looking
• 11:49
  Kia: to get into when it comes to buying a property
• 11:51
  Kia: and, two, that there is hope. It may seem a
• 11:54
  Kia: bit bleak. Things are going up in price and not
• 11:56
  Kia: seeming to come down. But there is still hope. If
• 11:59
  Kia: you want to get on the property ladder, it isn't as impossible
• 12:01
  Kia: as it may seem. Thank you so much, Tayo, for coming on.
• 12:03
  Kia: This has been a great episode. That's A Little Bit Richer's first foray
• 12:08
  Kia: into the huge topic that is property. I'll be back
• 12:11
  Kia: to this a little bit later in a series, too.
• 12:14
  Kia: It's worth noting that, as with all things to do
• 12:15
  Kia: with interest rates and house buying, it's always worth double-
• 12:18
  Kia: checking if things have changed before you make any big
• 12:21
  Kia: decisions. This episode is all about taking control of your property-
• 12:24
  Kia: buying journey. But, unfortunately, financial freedom isn't always a given.
• 12:29
  Kia: Next week is a particularly important episode as I'll be
• 12:33
  Kia: exploring what financial abuse is and how to recognize the
• 12:36
  Kia: signs of it around you. Be sure to check back
• 12:38
  Kia: next week for that. In the meantime, follow the podcast
• 12:41
  Kia: if you aren't already. Bye.