Latest / The Curve / RTC81: Hot Property! Myths, mortgages and margaritas.

Transcript

RTC81: Hot Property! Myths, mortgages and margaritas. · The Curve

0:00
Welcome to Raising the Curth, a podcast designed to teach you everything you need to know
0:05
to be better with your money.
0:07
And the wise words of Amy Shurma were slipping carrots into the brownie recipe.
0:11
I don't really get the saying.
0:14
It's kind of like eating vegetables that actually taste good.
0:17
You know, I'm like, still not ready to do it.
0:19
Are you on the script?
0:20
It's basically like saying, investing in finance can be boring, but it totally doesn't
0:26
need to be.
0:27
OK, OK.
0:29
So we're making it fun by putting the carrot.
0:32
OK, the vegetables are just good for you.
0:34
It's the brownie recipe.
0:35
OK, we got there, we got there.
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OK, OK.
0:37
Well, you've really got a finance mate.
0:39
Yeah, one of us has to.
0:41
This is a joke.
0:42
OK, come and learn alongside me from Vick Harris, ex-fun manager.
0:45
Well, I'm going to ask all the questions that you wish you could.
0:49
And I'm going to be eating all the brownie you wish you could.
0:51
No, that's so not the joke, Vick.
0:54
OK, just come and talk and learn and laugh with us.
0:56
Because together, we really can raise the curve.
1:02
Welcome.
1:03
This is, I was going to say this is our first ever property conversation,
1:07
but it's not.
1:07
No, but we have been trying to have more conversations about property.
1:11
It was actually our most listened to podcast.
1:13
And like the last year was that one on your mortgage.
1:16
Oh, gosh.
1:17
People are just interested in, like, how much is the M word, please?
1:20
Honestly, I just feel like a bit of a, like, have you been a slated balloon?
1:24
Yeah.
1:25
So, positivity.
1:26
So, sorry.
1:27
And I'm wearing a paddle round because we're in a very fun game.
1:30
We're up to play.
1:31
We've got, we're literally holding, are these ping pong bats?
1:34
Or are they table tennis?
1:35
Or is that the same thing?
1:36
So we have got some paddles.
1:38
And the reason that we have paddles is because today we are talking about the myths of the property market
1:45
and buying property because there's so many misconceptions when it comes to buying property.
1:50
I've never bought a house.
1:52
It's definitely a life goal of mine.
1:54
I'd love to own a property one day.
1:55
Vic owns a beautiful home in New Zealand, which you kind of miss being over here, don't you?
2:01
Yeah.
2:02
I mean, I just put words in your mouth, but I'm assuming it's a lot of things I miss.
2:05
That would probably be not one of the top ones, but yeah, it's up there.
2:10
Yeah, yeah, yeah.
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My dog, my family, my friends.
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Yeah.
2:13
I mean, but I would say your water, like the automatic water tap, but surely that's up there.
2:18
She's got a tap where it like goes like immediately boiling or immediately cold.
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It's just great.
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The perks.
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The perks of owning your own home.
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So we are joined by a special guest today.
2:30
We've got Laura here from Lighthouse Financial, the property experts.
2:36
Welcome.
2:37
Laura.
2:38
Thank you.
2:39
So exciting to be here.
2:40
Yes, we've been stoked because we've had quite a few people in the property world approach us
2:45
being like, do you want to have Gary on the podcast?
2:48
Yeah, we've got a great director on our board.
2:50
Do you want to have my hilt to come on and talk about property?
2:54
And we're like, no, Gary is actually my dad's name.
2:56
So you are kind of getting a bit of Gary, but maybe it was last time, wasn't it?
3:01
Gary at hotmail.com.
3:02
Or was it?
3:03
Yeah, that's it.
3:04
No, we're stoked to have you here.
3:06
Thank you for joining us.
3:07
Yeah, it's so cool.
3:08
We, yeah, I mean, like, that knows a lot more about property than I do, but we thought
3:11
it would be quite fun to play a game.
3:15
We were trying to come up with something more fun and we told you we would come up with
3:18
a better name, but we haven't.
3:19
So we're going with, we're going with truth or spoof.
3:24
Yes, I love that.
3:25
Words that rhyme are way more fun.
3:27
So we've got truth and spoof.
3:28
It seems a bit dead, Jokey, I'll be honest, but it was the best we could come up with.
3:32
So we're going to play a game.
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And the reason we wanted to do this is because we have partnered with Lighthouse Financial.
3:38
Can we tell them?
3:39
Yeah, I think we should.
3:40
So we're going to be coming up with a, well, at the moment, I love we, Vick and Laura
3:45
have been working really, really hard on creating an amazing course, a property course to help
3:50
people by their first homes.
3:51
Yes, and it's very exciting.
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It's going to be out soon.
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And this is almost just like a little teaser of what you can expect plus a whole lot more.
3:59
And so Laura is an expert when it comes to all things, mortgages, buying your home,
4:04
et cetera, et cetera.
4:05
I love that I said it because I need to do the course.
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I've never seen anything about what you're going to see here.
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Probably.
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But today we just wanted to introduce you to Laura so that you knew who she was.
4:15
You had a friendly face and voice that you could put on the other side because she's
4:18
going to be involved in the course.
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So if you do end up doing the property course, then she's going to be taking some of
4:23
those lessons.
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She's going to be on the live calls so that we actually have, I mean, Vick is an expert
4:28
in property, but Laura's an expert.
4:30
Laura's more of an expert.
4:31
Yeah.
4:32
I thought I was an expert and then I met Laura.
4:34
Yeah.
4:35
What I love about kind of putting all this content together is that, yeah, I've got
4:38
mortgage knowledge, Vick's got the investment knowledge, but we're both still learning
4:41
things as well.
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So if you imagine that we're learning from this already and hasn't even rolled out,
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like it's going to be so cool for the people that sign up that don't have that level of
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understanding yet.
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Yeah.
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A hundred percent.
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And we were speaking to the girls who do some of our social media because one of them's
4:56
bought a house and the other is in the process of buying.
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And she was like, God, I wish this existed.
5:00
But when I was buying my first home, like, you just don't know the stuff until you
5:04
know the stuff.
5:05
Yeah.
5:06
Even I was reading it and I was like, gosh, we kind of done this without lighthouse, definitely
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not.
5:11
Yeah.
5:12
But can we play the game?
5:13
Sorry.
5:14
So yes, the game is we're going to play a game where it's basically a truth or a spoof.
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So is this real, like, is this a real thing when it comes to property or is it fake?
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Can we put something on the line like someone wins something because I think it'd be more
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fun.
5:28
So Laura, why don't you throw in a free house?
5:31
Okay.
5:32
Yeah, I can do that.
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I'm sure lighthouse is going to spill one out there soon.
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There you go.
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Throw it.
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Yeah, I just got a bit of loose, loose million dollar chain playing around.
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Oh my gosh.
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Should I need to win this?
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Yeah.
5:44
Okay.
5:45
If I win, you have to buy me loaded fries from somewhere and I don't do fries.
5:49
Okay.
5:50
If you win, what do I have to buy you?
5:52
Maggerita.
5:53
Okay.
5:54
It's a deal.
5:55
Okay.
5:56
I had a feeling that was coming.
5:57
So who's leading this?
5:58
Are you going to do us the meths, Laura?
6:00
Yeah.
6:01
I'm going to see.
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I'll test you what your knowledge and perception is.
6:04
I'll ask you.
6:05
You can.
6:06
Okay.
6:07
Okay.
6:08
You can buy your first home with a five percent deposit.
6:11
Spoof.
6:12
Yeah.
6:13
Same.
6:14
Is it a spoof?
6:15
Yeah.
6:16
Yeah, that's spoof, but you're both wrong.
6:17
So that's actually true.
6:18
There is a misconception that you need a 20 percent deposit, but there's five percent
6:25
deposit options, 10 percent deposit options.
6:28
You certainly don't need to wait for that 20 percent.
6:30
I always sort of think that's what we've been talking about.
6:33
Yeah.
6:34
I've seen it 20 percent.
6:35
My dad's told me that since I came out of the world.
6:37
Yeah.
6:38
I feel like 20 percent is just the number.
6:39
You know, you look at all kind of house prices are a million dollars.
6:42
You're like, cool.
6:43
I'm going to need 200,000.
6:44
So okay.
6:45
So you're sorry.
6:46
You can buy a property with 5 percent.
6:47
Yeah.
6:48
You can.
6:49
So there's the first time loan and that is essentially designed for people who have a
6:52
5 percent deposit.
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So like you just said, if you're under the impression that you need that 20 percent,
6:58
knowing that there's a 5 percent option available, that's going to get you into your house
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like four times faster than if you're waiting to save 20 percent.
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And like you said, like if you're buying a million dollar property, that's $200,000
7:09
that you need to save up.
7:11
But really, you could do it with 50,000.
7:13
I think even for you, I could probably buy a property because you've been saying, oh,
7:18
gosh, I can't save that much, which a lot of people wouldn't be able to.
7:22
So I think there's 200 grand in this account.
7:24
Just lying around.
7:25
Yeah.
7:26
So what kind of properties could I buy for 5 percent?
7:28
Do I have like a limited amount of options?
7:30
I guess you're limited in terms of like you're buying it like as such a smaller deposit.
7:34
But as far as the banks are concerned, there's no kind of cap on what you can buy.
7:37
I guess we see more people doing this with new build properties just because they tend
7:42
to sell easier and the price point is typically a bit lower.
7:45
Like if you were buying a home that was completely a shack, for example, you're going to have
7:50
to be spending a lot of money to get that up to a good standard.
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You wouldn't be able to buy something like that for a really cheap price and do it up.
7:58
It has to be a good quality home when you buy it.
8:01
Wait, why is that sorry?
8:02
Because then you need to put more money into the house to do it up.
8:05
Yeah.
8:06
Okay.
8:07
So whereas with the new build, there's, I guess there's less risk in terms of the value
8:10
of the property as well, is that they're probably more right.
8:13
Yeah.
8:14
If it's a new build, the bank's pretty certain that it's being built to standard.
8:17
It's got all new knick-knacks in it, all of that kind of stuff.
8:20
Yeah.
8:21
The kind of thing was the opposite that it would be easier to buy a doer wrapper with less
8:25
money than a nice new build.
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But the banks are worried about that property holding its value.
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If it's a shitty house, then there could be less demand.
8:32
If it's a new build and it's just come on the market, it's of a higher speed.
8:37
Yeah, exactly that.
8:38
You've got to think of it from the bank's perspective.
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If they're lending you 95% of the value of that house, then they're taking on massive
8:44
risk at their end.
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So they have to be sure that what you're buying is actually a good house, that they'll
8:49
be able to sell it again in the future and, you know, they're looking at it from their
8:53
risk perspective as well as yours.
8:55
So, good or not, it's a lot.
8:57
So like it?
8:58
Maybe by property zone.
8:59
Yeah.
9:00
Can we talk after this call please?
9:01
Definitely.
9:02
Hit us with the second.
9:04
You have to be employed and paid a regular income.
9:07
So no freelancers can buy houses.
9:10
True.
9:11
True.
9:12
Oh, that's where you're both wrong.
9:14
I'm stopping copying you.
9:16
Why would you copy me?
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Because I'm kind of seeing what you're doing and then I'm like more because I've forgotten
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which is chosen.
9:23
What is it?
9:24
Well, both got nothing.
9:26
Yeah, both on zero.
9:27
Both on zero.
9:28
You both didn't equally as bad, then that's good.
9:30
Yeah.
9:31
So, I mean, obviously, do you have to have a source of income?
9:33
You need to be able to pay that mortgage, but you don't have to be employed and paid
9:38
a salary, you know, self-employed people, freelancers, people that own their own business,
9:41
they've still got as much opportunity and chance of buying a house as someone that's
9:46
you lied to me.
9:47
Yeah, you know what?
9:48
Yeah.
9:49
Well, I was about to say my debt.
9:50
Oh, he's going to need a spanking after that.
9:54
He needs to listen to this episode.
9:55
Yeah.
9:56
We'll get him on.
9:57
He needs a spanking.
9:58
He needs a hard talking to a dog because he told me there's no way I was going to get
10:04
into a house as a freelancer because something about you need two years of consistent and
10:10
calm or something.
10:11
Again, that is kind of a little myth in itself.
10:14
So, Bank policy does kind of allute you yet.
10:16
You need to have two years of accounts, but that, again, that's not always true.
10:20
Not every bank will require two years.
10:22
Some banks will let you do it with one year.
10:24
They also look at kind of the nature of your employment, the industry that you're working
10:28
in, you know, your past experience in that same industry.
10:32
So, there's quite a few variables to that that you don't have to have just been in that
10:36
one freelancing role for two years.
10:39
And that's that.
10:40
Like, there's definitely kind of ways around it.
10:42
So, it kind of sounds like with all of these, well, we've only been through two, but
10:46
it's kind of someone's heard something and run with it and created a Roma and then
10:51
everyone started to believe it.
10:52
And it's like, no, no, it was probably just one person that had an inconsistent freelance
10:57
in coming some industry going back with.
11:00
And everyone's all the freelancers are up in arms being high.
11:04
Yeah.
11:05
Do you know my biggest bug we have for this one is TikTok, the amount of people that
11:08
go on TikTok and they hear this and they hear that and they're like, oh, yeah, that's
11:11
for sure.
11:12
It's like, no, it's not guilty.
11:13
Yeah.
11:14
So, guilty.
11:15
Also, I can't believe it.
11:16
Okay.
11:17
What's number three?
11:18
I mean, four.
11:19
Three.
11:20
Three.
11:21
You have to have been with the same bank for six months to get an approval.
11:23
Oh, God.
11:24
I have no idea.
11:25
I feel like I need to not look at you.
11:26
Surely that's a deep proof.
11:28
That's true, Hurricane.
11:30
Because maybe you're a dodgy customer that lifts this talk.
11:34
Maybe they'll be like, oh, Sophie's.
11:36
She's done.
11:37
If I'm quickie over on being zed and have you heard of technology, babe?
11:40
True.
11:41
There's no paper trails.
11:43
I reckon.
11:44
Okay.
11:45
Maybe I'll change my mind.
11:46
Nope.
11:47
Nope.
11:48
I'm going to go spoof.
11:49
Okay.
11:50
Yeah.
11:51
You're both around that one.
11:52
That is a spoof.
11:53
There's this kind of conception that you have to have been with the same bank for a certain period
11:55
of time.
11:56
What about if you're overseas?
11:57
Yeah.
11:58
That's when it does become a little bit more tricky.
11:59
Yeah.
12:00
So, say you already had an account with A and Z, for example.
12:04
And then you go off to Italy and live there for six months and you want to buy a house
12:08
when you're there.
12:09
A and Z will still look at your application.
12:11
But if you then went to say B and Z as a new customer, then that's when things get
12:15
a bit more tricky.
12:16
And some banks need you to be in the country to do your onboarding.
12:19
So unless you're going to fly back from Italy for a quick pit stop, then you will kind
12:24
of need to be with that bank.
12:25
Because when I got, when I applied for my pre approval, my mortgage, I had just come
12:31
back from Australia.
12:32
And I thought because I was with Combank, Commonwealth Bank of Australia and ASB, they're
12:37
owned by the same company.
12:38
I was like, they must talk to each other.
12:39
They must be overseas.
12:40
And they were like, no, sorry.
12:41
So you couldn't, but I was like, I'd only been in Sydney for four years.
12:45
So I was like, if you looked at my earning capacity before that.
12:48
And then I showed them my earning in Sydney, even though they didn't really take them to
12:52
account.
12:53
And I had a job in New Zealand, but I only had a contract and it started years.
12:57
So that was a whole another kettle of fish as well.
12:58
And like, you need to be employed for the probation period, which was like three months
13:02
before.
13:03
So I was like, all the stuff, I was like, oh, please, wait, so you didn't get approved?
13:07
No, I did.
13:08
Yeah.
13:09
I got my parents to say that if I got fired or they would, they would serve a similar,
13:14
I can't actually remember, but I think anyway, they came round to it.
13:17
And I was like, got the mortgage.
13:19
This one is quite timely, very topical.
13:22
The election doesn't have an impact on property prices.
13:26
Oh, truth.
13:27
Truth.
13:28
No, it does.
13:29
It's both truth.
13:31
I mean, you're on both.
13:32
Yeah, you think it's fake.
13:34
The election doesn't.
13:36
Why?
13:37
Sorry, it does.
13:38
Oh, OK, I think it does.
13:39
I think it does.
13:40
Yeah, stick to your guns over you.
13:41
You're right.
13:42
It doesn't have an effect.
13:43
I'm winning.
13:44
Oh, my God.
13:45
Because we've been up at the worst point with being innocent.
13:47
We're going to lose our credibility here.
13:48
So now I've got a point.
13:49
So why do they not impact?
13:51
Please explain.
13:52
Generally, if you look over like the last 30 years of data
13:55
around election times, there isn't much difference
13:59
in terms of activity in the market
14:02
and the value of properties around that election time.
14:04
I guess the activity and the values do drop off very slightly
14:08
around an election time.
14:09
But elections generally happen in October.
14:12
And whether it's election year or not,
14:15
activity in the market around that then winter months
14:18
tends to drop off anyway.
14:20
It's a coincidence, if you like, that elections fall
14:23
within the winter months.
14:24
So there's always going to be less activity.
14:26
It's not necessarily the fact that it is an election year.
14:29
It's probably more the time of the year
14:30
that it is also whether it's national or labor government
14:34
doesn't have much bearing on it either,
14:36
like typically values remain consistent
14:38
whether national or in government or labor.
14:41
Well, because I mean, are the governments changing things
14:43
like your mortgage rates or anything?
14:45
Like, does...
14:46
They don't influence mortgage rates.
14:47
Yeah, so why would they...
14:48
If they came out, I guess, of labor came out
14:50
and said, we're going to introduce capital gains
14:53
or a stamp duty, which means it's an extra cost
14:56
when you buy or sell a property,
14:57
that would probably impact it.
14:58
But then market forces supply and demand were just, I guess.
15:03
So you were wrong, I went...
15:04
I was half right.
15:05
Okay, this one, you've probably heard this time again.
15:07
I have to have three credit cards
15:09
before I can get an approval from the bank.
15:11
Oh, I've never heard that.
15:12
That's a spoof.
15:14
That's a spoof.
15:15
Yeah.
15:16
Just make that a bit more deep, so that's terrible.
15:18
Exactly.
15:19
Wouldn't it be the opposite?
15:19
Wouldn't they be like, absolutely not?
15:21
Yeah.
15:22
This one really gets my goat.
15:23
So people...
15:24
Do people honestly...
15:25
Sorry, did you say this one gets my goat?
15:28
It gets my goat, yeah.
15:29
I haven't even heard that.
15:32
Can you not hear that?
15:33
Who's stealing your goat?
15:35
Get my goat.
15:36
It's one that really grinds my gears.
15:38
Shit, that's my goat.
15:39
That must be a British saying.
15:40
Yeah, it gets my goat.
15:41
It's quite funny, because we're in London at the moment,
15:44
but you're in New Zealand,
15:45
but you've moved there from here.
15:47
Yeah.
15:48
That's wild.
15:49
I know, but it's just weird, because like...
15:51
Most people do it the other way around.
15:52
Most people leave New Zealand.
15:53
They don't move to New Zealand from here.
15:55
Yeah.
15:56
Don't be mean.
15:57
How many British people do you know in Auckland
16:00
or New Zealand or any part of...
16:01
I don't, anyway, sorry, off track.
16:03
What's getting your goat, Laura?
16:05
With the credit cards, no.
16:07
Like you just said, that's just giving you more debt.
16:09
You're opening up yourself up to more risk of defaults
16:12
and falling behind on payments.
16:15
When a bank's looking at what they'll lend to you,
16:17
one of the things they consider is your fixed expenses.
16:20
So if you've got a credit card,
16:21
you're going to have to pay a certain amount back
16:23
to the bank every month.
16:24
And that's a deduction from your pay
16:26
that you've got left to pay your mortgage with.
16:28
So actually having a credit card will reduce the amount
16:32
that you can borrow from the bank.
16:34
It doesn't improve your credit rate in on...
16:36
So if you don't have any credit cards,
16:38
you're being the best position to be approved for alone.
16:40
Absolutely.
16:41
Yeah.
16:42
And also, again, you've got to look at it
16:44
from the banks perspective, especially as a first-home buyer.
16:47
If you're living on credit already,
16:50
if you can't already maintain your lifestyle
16:52
when you're renting, which is typically cheaper
16:54
than having a mortgage,
16:55
how are you going to maintain a much higher financial commitment,
16:59
like if you can't even already maintain your lifestyle?
17:02
Yeah, that's a good one.
17:03
That makes sense.
17:04
Number six.
17:06
So I'm just clarifying it's just one to Sophie's zero to bed.
17:10
Clear.
17:11
OK, so you can't take your key.
17:13
We save it out if you've already bought a house.
17:16
Or I need to think about this one.
17:17
You can't take it out of you.
17:19
Oh, yeah, because you're meant to take the key.
17:21
He's never out for your first home.
17:23
I reckon that's truth.
17:26
Yes.
17:27
How do you know you're right?
17:28
Because I know I'm a key we save it like fan.
17:31
Yeah.
17:33
So is that true?
17:35
I mean, is that a spoo?
17:36
That's a spoo, yeah, really.
17:38
Yeah, so generally speaking,
17:39
you should be withdrawing it for your first home.
17:42
But if your class has been in the same position
17:45
as a first-time buyer, but you've previously owned a property,
17:48
you can still apply to which or them.
17:50
Key we save our savings for a second time.
17:52
Is that if you've sold the property, the first property?
17:55
Yeah, so you can't already own a property
17:57
and then apply to use it to buy a second one.
18:00
Isn't it like if you go through like a really messy divorce
18:04
and they get the house and then you're kind of back to square one
18:07
as kind of, it's more the minority, not the majority.
18:11
Because I was imagining your question
18:13
as you already own a house and you're going from round two,
18:16
can you take them on the out?
18:17
Just, I just like to clarify that I would have
18:19
come up with rules.
18:20
It's now one or brighter.
18:22
Yeah, it's right on.
18:24
Okay, pre-approval is a guarantee of lending.
18:27
It's both.
18:27
True.
18:28
That's why you get pre-approval.
18:29
No, because what if like you lose your job
18:32
all of a sudden and you don't can't pay for it
18:34
or they find out you're fraud and you're going to jail.
18:37
But they pre-approved you on...
18:39
Yeah, but there might be circumstances
18:41
that happened after the pre-approval.
18:43
But then what if you go...
18:44
It's a pre-approval, not a preval.
18:46
Anyway, who's right?
18:46
You're on the money, so it's exactly for that reason.
18:49
Ah, I'm maybe properties, my future.
18:53
It's pre-approval, I prove it.
18:55
So yeah, the pre-approval is then saying,
18:57
yeah, we'll lend you X amount of money,
18:59
but that generally does come with some conditions.
19:01
And like you said, if things change and you lose your job,
19:04
then they're not going to still be like,
19:05
ah, here, take $700,000 and don't pay it back.
19:09
You have like a certain time
19:10
in which that approval is valid for.
19:13
So you have to meet the conditions within that time
19:15
if your financial situation changes
19:18
and they'll reassess what they're going to lend to you.
19:20
God, aren't you just not tell the bank you lost your job?
19:23
Yeah, could you do that, Laura?
19:24
And then just scrounged around and found the money
19:26
to pay the mortgage repayment.
19:27
Let's break, let's break, let's break.
19:29
No, no comment.
19:30
She's not condoning illegal activities, Sophie.
19:33
I don't know. How would they know?
19:35
What if you presented yourself in the current situation
19:37
you were and you got pre-approval
19:39
and then shitted to the fan?
19:42
You lose your job. Make up your boss.
19:43
Yeah, I lose your job.
19:46
You break up with your partner and your...
19:47
You have a big ol' low up here, boss.
19:50
Yeah, I mean, you don't have to tell the bank
19:52
if you've split up with your boyfriend, I guess,
19:54
but if he's on the mortgage then,
19:57
you need to find a new one quickly.
19:58
Carol, Carol, I'm going through some hardship.
20:03
She's like, I don't care.
20:05
He dumped me by chicks.
20:07
I need to update my application.
20:08
I'm now single.
20:09
I'm now on this.
20:10
We have actually seen that, you know?
20:12
So people who are in a relationship,
20:13
they apply with one person,
20:15
that relationship falls apart
20:16
and then very quickly, they're applying with somebody new.
20:19
And you're like, hmm.
20:20
Wait, so they're faking the new relationship
20:21
or they're just moving on quickly?
20:23
Well, they must just be very good at convincing someone
20:25
to buy a house with them.
20:25
Ah.
20:27
They obviously don't have any emotions.
20:28
They would be in replay for me.
20:30
Two Dayton, what about your house?
20:31
I mean, you'd probably be like, yep, sure.
20:33
I'd be like, does anyone get so true?
20:37
I'd be like, I thought you'd give her up.
20:38
Darling, I've got to weigh into the broth.
20:41
Laura, Laura, I can do it.
20:43
Sorry.
20:45
God, that's accurate.
20:47
Sorry.
20:48
I should just put on my hinge, looking for a house.
20:51
Yeah.
20:53
OK, number eight.
20:54
OK, we can all resonate with this one.
20:57
The banks aren't concerned with my current spending.
21:01
Oh, my gosh, I have a...
21:02
Wait, this is definitely a spoof.
21:04
Truth.
21:05
No, it's a spoof.
21:06
They're definitely concerned with their current vendor.
21:08
Who's right?
21:09
Vic is right.
21:10
They're not concerned with your current spending,
21:12
especially when you're a first-home buyer.
21:14
So say I'm renting for $200 a week,
21:17
then I've got a lot more money to go out
21:19
and eat loaded fries and drink margaritas.
21:22
I'm not going to have that much money when I've got a mortgage.
21:25
So, yeah, they'll look at your bank statements
21:27
and say, OK, you've got a lot of discretionary spending now,
21:29
but if you were to fall into financial hardship,
21:31
that stuff that you could pull back,
21:33
the main things they're looking for are those fixed expenses.
21:35
So as long as you can meet those kind of important things,
21:38
your rates, insurance, if you've got any loans or credit cards,
21:41
anything else that is just your fund money, that's...
21:44
That's clear about it.
21:45
Yeah, exactly.
21:46
So if they looked through your account and they were like,
21:48
margarita, margarita, margarita,
21:49
shot, shot, shot, margarita, margarita.
21:51
They'll be like, she'll give up those
21:52
when she buys a house.
21:53
They don't care.
21:54
What if I'm still like, owner house,
21:56
shot, shot, margarita, margarita.
21:57
Margarita, margarita.
21:59
Hey, as long as you're making your payments,
22:01
they probably don't care what you spend the rest of your money on.
22:03
Right.
22:03
Yeah, as long as you can pay for the mortgage, do what you want.
22:06
I've thought that they look through your statements
22:08
and they're like, oh, no, she's seeing too many
22:10
on stupid stuff.
22:11
That's crazy they don't.
22:12
Yeah, I mean, they do look through your statements
22:14
and it is just basically to see,
22:16
your account conduct, is there anything that you're paying for?
22:19
If you've got all these transactions saying loan repayment,
22:21
loan repayment, paid repayment, mum repay dad,
22:24
then they're going to be like, well,
22:25
you have actually got some debts here.
22:27
What about if you constantly go below,
22:30
like, I'm constantly overdrafted.
22:33
Yeah, or constantly like,
22:35
oh, and fees for going into the negative.
22:37
Yeah, that's not going to be so great.
22:39
Shit.
22:40
So I need to stop doing that if I want to buy a house.
22:42
You know, Beverly, it beans you.
22:44
They know she hates me.
22:45
She's like, you've got another insufficient funds fee.
22:48
Oh, all the time.
22:49
All the time.
22:50
Because of all your fees, I'm insufficient funds,
22:52
people.
22:53
Anyway, number nine.
22:55
So what do we, one equal?
22:56
Actually, I think it's two one.
22:57
Me. Yeah.
22:59
I can just use my family lawyer.
23:00
All lawyers do the same.
23:02
Spirth.
23:03
Truth?
23:05
Lawyer's a lawyer.
23:06
No, I reckon there's probably specific lawyers for property.
23:08
Yeah, you're right.
23:09
So so you need to have a coffee
23:11
before these recordings, obviously,
23:12
because I am killing it.
23:14
Lawyer's a lawyer.
23:15
A criminal lawyer doing a murder case
23:17
can sort out your property?
23:19
Surely not.
23:20
Yeah, I mean, in principle,
23:22
there is a little bit of truth in that.
23:23
A lawyer is a lawyer, but they do very different things.
23:26
So a property lawyer will specialize in reading
23:29
those kind of contracts.
23:31
They're working for you.
23:32
They've got your best interests at heart.
23:34
They're going to know what kind of conditions and clauses
23:36
could be added or removed to your offer.
23:38
So they're going to have a lot more
23:40
kind of interpret knowledge of those contracts
23:43
than a divorce lawyer or a criminal lawyer.
23:46
I guess if you did use a family lawyer
23:48
or a criminal lawyer, whatever,
23:50
they just wouldn't know as much as you might need
23:54
to get it across the line or what to.
23:56
Yeah, so I guess you're not putting a best foot forward.
23:59
Yeah, exactly.
24:00
Nice to put.
24:01
And in the property course that you guys are working on,
24:04
there is a part of what you're developing
24:07
is the idea of needing a property team, right?
24:09
So you need to have the right people around you,
24:12
whether it's a broker, whether it's a lawyer, et cetera,
24:15
et cetera, to make sure that you do have
24:16
the best chance of buying.
24:18
Yeah, definitely.
24:19
Because you'd hate to miss out just because you wanted
24:21
to save a bit of costs and get a...
24:23
Family lawyer.
24:24
You could use a family lawyer or rather than actually
24:27
get a property lawyer, that would be really rip your IDs.
24:30
And getting that wrong advice will cost you
24:32
a lot more in the long run as well.
24:33
So what much better way to say it?
24:35
And lucky number 10, this is a winner-take-all.
24:38
This is the last one.
24:39
Oh, yeah, this is a winner-take-all because it's too long.
24:41
Oh, oh, oh, oh, oh, oh.
24:43
I can almost guarantee that so stable of how
24:45
to hand in her answer to this one.
24:48
Oh, no, I'm not saying any wrong.
24:50
So my parents can guarantee my loan.
24:53
Truth.
24:54
Truth.
24:54
Yeah, there is truth in that.
24:57
We have three.
24:58
We have three.
24:59
Oh, my God, really?
25:00
I can't win.
25:01
No, because that's not fun.
25:02
No, it is.
25:03
It's a year, a year, I guess.
25:05
But oh, no, I don't get the price.
25:08
Well, I'm the price of margaritas.
25:09
Yeah, I'm a corporate card.
25:10
Yeah, no, sorry.
25:11
Can you elaborate on a place?
25:13
So say your parents already own their home
25:15
and you don't have quite enough deposit to buy yours.
25:19
Your parents can offer their home as a security to the bank
25:23
that then allows you to complete your deposit, essentially.
25:28
So say so if it was buying her first house
25:30
and her dad said, I'm willing to put up the equity
25:33
in my security, offer that to the bank as a guarantee
25:36
that if Sophie doesn't pay her loan, what's the security?
25:39
But your house.
25:40
So you don't actually give them cash.
25:42
It's saying, look, I've got a property
25:44
that if so for whatever reason goes tits up,
25:49
then you've got my property that you can claim.
25:52
But it's not actually them giving her money, is that right?
25:55
Yeah, so if you're guaranteeing,
25:56
your dad's not physically giving you any money,
25:58
he's saying to the bank, you can take my house,
26:01
a security over my house that if Sophie doesn't repay her loan,
26:04
like you can claim that for my family.
26:06
I don't think you reckon my dad would do that.
26:08
Hey, should we call him?
26:09
I reckon he wouldn't do that.
26:10
What are we going to do there?
26:11
I'm going to just call him an ass.
26:12
This is quite funny.
26:13
Give me a moment, please, Laura.
26:15
Now, hi, Dad.
26:16
No, it's Cathy.
26:17
Oh, Cathy, how are you?
26:19
Ah, that's so bizarre.
26:21
I've just driving up the door, and it's come through my ex.
26:24
I think you might be connected too.
26:26
Wait, where's Dad? Is he not in the car?
26:27
He's not going to take over, but hey, I'm down.
26:30
There was such a lovely outfit,
26:31
that such a lovely thing he didn't really love it.
26:34
And we had such a shit time to get there,
26:36
so honestly, the girls that they all got was really gorgeous.
26:40
Um, Cathy, we're just reporting a podcast, and you are live
26:43
to the wireless.
26:44
So can you put Dad on?
26:46
Excellent.
26:47
Yes, he's coming right up.
26:49
Love you.
26:50
Hi.
26:51
Michael, alright.
26:52
How are you?
26:53
Hi, hi.
26:54
How are you?
26:55
It's about here, too.
26:56
We're good.
26:57
You're on the podcast.
26:58
I'm what?
26:59
You're on the podcast.
27:00
How come I want the podcast?
27:01
So there's a question.
27:02
She wants to ask you.
27:03
I've got a question, and you've got to be honest.
27:05
So, hypothetically, I've somehow managed to scrounge around
27:09
and get 5% to buy a house, of a deposit, 5% to deposit.
27:16
If hypothetically, I did get to that point,
27:19
would you have a guarantee my loan?
27:21
Well, the issue is a...
27:22
Hold on, before you answer Dad, before you answer,
27:24
I just want to know based on my track record
27:26
as a human and with money, which...
27:29
LAUGHTER
27:31
You think that one is not fabulous, darling.
27:33
I have to say.
27:34
LAUGHTER
27:37
Probably not.
27:38
LAUGHTER
27:41
That's right.
27:41
That's what I thought you'd say.
27:43
I just wanted to check in.
27:44
See how much you loved me?
27:45
Good to know.
27:46
I fell in love with you, talk to you later, bye.
27:48
So, it was a draw.
27:50
Obviously, Dad's not going to be guaranteeing me for a house,
27:52
so Laura, if you could whip up some alternative options for me,
27:55
that would be much appreciated.
27:57
That was a really fun game.
27:58
Thank you for coming out with all those funs.
28:00
I definitely learned a lot, and I need to scrub up
28:03
on my property learnings before this course is released.
28:05
I think I learned that I'm quite clever, actually, from that.
28:08
I did quite well.
28:10
Yeah, you knew more than you thought.
28:11
You're ready to go, so.
28:13
Way more than I thought.
28:14
Maybe Dad actually has an unalterable job.
28:17
But we have our property course, which we will give you
28:19
more details on next week, keep an eye out,
28:21
and our socials, et cetera.
28:23
And thank you so much, Laura, for joining us
28:25
for this special podcast.
28:26
Thank you. Thank you.
28:29
Thank you so much for listening to Raising the Curve.
28:31
These conversations are designed to teach you everything
28:34
that you need to know to be better with your money,
28:36
from saving, to investing, to talking to your friends
28:39
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28:40
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28:43
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28:44
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28:46
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28:47
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28:49
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28:51
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28:53
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