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The number 1 secret to selling your house · The Money Puzzle

• 0:07
  Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm
• 0:11
  Speaker 1: James Kirkby. Welcome aboard everybody. You Every now and again
• 0:14
  Speaker 1: you come across somebody in the property industry and they
• 0:16
  Speaker 1: just catch your eye. Tony Odaherty is a real estate
• 0:19
  Speaker 1: agent with the McGrath Group and he quite simply wowed
• 0:23
  Speaker 1: the audience at the National Property Conference, the Eric Conference
• 0:27
  Speaker 1: on the Gold Coast recently, and I'll tell you he
• 0:29
  Speaker 1: had some stiff competition on stage there. I can tell
• 0:32
  Speaker 1: you he's one of the top real estate agents in
• 0:34
  Speaker 1: Queensland and remarkably, and this is a complete coincidence which
• 0:40
  Speaker 1: you'll probably find hard to believe, but it's true because
• 0:42
  Speaker 1: I didn't know he was Irish when I went to
• 0:44
  Speaker 1: look for him as an interview, but we grew up.
• 0:47
  Speaker 1: I would say, cycling distance from each other in County
• 0:50
  Speaker 1: Limerick and the West of Ireland. I didn't know that
• 0:52
  Speaker 1: until today. So it's going to be fun. How are you, Tony.
• 0:54
  Speaker 2: I'm very well. I'm very well. Thank you for having
• 0:56
  Speaker 2: me today and hopefully sharing some wisdow.
• 1:00
  Speaker 1: Thank you well. Look at you know. One of the
• 1:02
  Speaker 1: things I thought I would ask you, and I think
• 1:04
  Speaker 1: it's something that is special when you come from another
• 1:08
  Speaker 1: place and it just so happens that you come from
• 1:09
  Speaker 1: the same place as me, but it could have been anywhere.
• 1:11
  Speaker 1: And then you get really involved in the property industry,
• 1:14
  Speaker 1: you only get like, you get one chance right to
• 1:16
  Speaker 1: have first impression. And when you arrived and you looked around,
• 1:21
  Speaker 1: it was probably different than now. But what was your
• 1:23
  Speaker 1: immediate ideas in terms of the opportunities that you could
• 1:26
  Speaker 1: see in front of you and the risks that were
• 1:27
  Speaker 1: different if you like, that were distinct to Australia.
• 1:30
  Speaker 2: I think the opportunity here is residential real estate, which
• 1:33
  Speaker 2: is my area of expertise. Yeah, the opportunity is phenomenal
• 1:37
  Speaker 2: from my point of view. As a selling agent. We
• 1:39
  Speaker 2: get paid to assist people sell their properties, as you
• 1:42
  Speaker 2: well know. But Australian culture, we move quite a lot
• 1:45
  Speaker 2: on average. One used to be an average once every
• 1:48
  Speaker 2: seven years in the areas I operate from now once
• 1:50
  Speaker 2: every five years. Yes, then you have the unfortunate reality
• 1:54
  Speaker 2: of people, you know, partying ways, which is culturally extremely
• 1:58
  Speaker 2: common in this country, in excessive fifty percent, which I
• 2:00
  Speaker 2: know we're not here to talk about, but.
• 2:02
  Speaker 1: It means people are changing it's turnover.
• 2:05
  Speaker 2: There's turnover where you and I grew up. And it's
• 2:07
  Speaker 2: not just in our neck of the woods. It's Europe
• 2:09
  Speaker 2: in general. If you were speaking to an Italian guy
• 2:12
  Speaker 2: and a Greek guy, they most likely did not move
• 2:14
  Speaker 2: their family home every five years, in fact, staying there
• 2:17
  Speaker 2: forever intergenerationally. Often yes, yes, like our previous generations. My
• 2:21
  Speaker 2: mum was in a house that she's three hundred years
• 2:24
  Speaker 2: with her people have been in that house. Australians don't
• 2:27
  Speaker 2: do that. The other opportunity for me was sky high
• 2:31
  Speaker 2: is ownership in Australia. The Australian dream is to own
• 2:34
  Speaker 2: a property. That recently, Switzerland, which is one of the
• 2:39
  Speaker 2: best economies in Europe, sixty six percent of people in Switzerland,
• 2:43
  Speaker 2: which you're known as Swiss people. I have to think
• 2:46
  Speaker 2: about that. It shows you Swiss, It shows you if
• 2:49
  Speaker 2: I can make it in real estate, So do can you?
• 2:51
  Speaker 2: Ironic the Swiss people sixty six of them rinned they
• 2:54
  Speaker 2: don't own a property.
• 2:55
  Speaker 1: Six very common continental Europe. Same, Yeah, Austria is similar
• 2:59
  Speaker 1: and even Germany. But here's the thing, so that's your
• 3:02
  Speaker 1: So you could see the opportunity, of course, and you
• 3:03
  Speaker 1: can see the stinct opportunities tell me about it's hard.
• 3:07
  Speaker 1: Maybe even the world risk isn't the right world. But
• 3:09
  Speaker 1: where things could go wrong I'm guessing. But if you see,
• 3:14
  Speaker 1: if you've and you've come to this market, and you've
• 3:15
  Speaker 1: watched it particularly obviously a very hot market Queensland for
• 3:19
  Speaker 1: a long time, I imagine complacency must be something of an
• 3:24
  Speaker 1: issue that people think it's all too easy.
• 3:26
  Speaker 2: Look, first of all, I'm a big believer in property.
• 3:28
  Speaker 2: I bought a property again recently myself. I think the
• 3:31
  Speaker 2: risk to your listeners are exposure and leverage. Warm Buffett,
• 3:35
  Speaker 2: the smartest mind of all when it comes to money,
• 3:37
  Speaker 2: describes the three greatest risk to mankind is in disorder, liquor, ladies,
• 3:42
  Speaker 2: and leverage. I'm not going to tell you what to drink.
• 3:45
  Speaker 2: We hope you're doing the right thing at home. Leverage
• 3:47
  Speaker 2: is the risky one. Leverage is the risky one. When
• 3:50
  Speaker 2: you buy real estate, make sure you can afford to
• 3:52
  Speaker 2: make your repayments at you know, higher interest rates than
• 3:55
  Speaker 2: what are currently occurring. The risk is over exposure, a
• 3:59
  Speaker 2: long term thing we know about real estate. Guaranteed as
• 4:01
  Speaker 2: sure as night follows day, real estate property will go
• 4:04
  Speaker 2: up mightn't be here in year, but it will be
• 4:06
  Speaker 2: decade on decade. So the smartest people I know in
• 4:09
  Speaker 2: terms of residential real estate, which is the area that
• 4:11
  Speaker 2: I'm across, buy and hold, yes by and wait.
• 4:17
  Speaker 1: But at the same time you were telling me the
• 4:19
  Speaker 1: start there is this endless turnover accelerating turnovers. So not
• 4:23
  Speaker 1: everybody has the choice. I suppose sometimes and as you say,
• 4:26
  Speaker 1: people get stretched. Just explain if you would, about in
• 4:30
  Speaker 1: this market, and it's a hot market, what are the
• 4:33
  Speaker 1: issues that people should be careful of when they're entering
• 4:37
  Speaker 1: the market or they're starting to accumulate money. Of the
• 4:40
  Speaker 1: money puzzle listeners there will beyond there only their first home.
• 4:44
  Speaker 1: They're just starting to build properly by residential start to subdivide.
• 4:49
  Speaker 1: What are the issues there?
• 4:50
  Speaker 2: So when you talk about developers, and we'll discuss them,
• 4:53
  Speaker 2: we'll call them mom and dad developers or amateur developers.
• 4:56
  Speaker 2: I currently have a development business. We do knockdown rebuilds.
• 5:00
  Speaker 2: Consider must have an amateur developer despite the fact that
• 5:02
  Speaker 2: I've done quite a lot and do a lot at once.
• 5:04
  Speaker 2: What makes me an amateur is I buy on market
• 5:07
  Speaker 2: pain market value. I'm not a builder or a town
• 5:10
  Speaker 2: planner or anything. I am a sales agent, but that's
• 5:12
  Speaker 2: the back end, so I'm an amateur. I can't save
• 5:15
  Speaker 2: the fifteen percent or twenty percent that you're likely paying
• 5:17
  Speaker 2: your builder to build, so therefore I'm not a professional
• 5:20
  Speaker 2: developer by my own definition. They risk to a lot
• 5:22
  Speaker 2: of mom and dads, and we love to see this
• 5:24
  Speaker 2: as an agent on behalf of my clients. I don't
• 5:27
  Speaker 2: like to see it as a developer is that people
• 5:30
  Speaker 2: are over pain all too often, and they're over pain
• 5:33
  Speaker 2: not acknowledging what it's going to require to do the development.
• 5:38
  Speaker 2: You see, although I'm a due development I don't do
• 5:41
  Speaker 2: any development in the areas that I sell because my
• 5:43
  Speaker 2: primary function is to optimize a sale price and raise
• 5:46
  Speaker 2: the values. So I continuously do it in other areas.
• 5:50
  Speaker 2: But the risk to people I see. I sell homes
• 5:52
  Speaker 2: to people all the time at auction where your reserve
• 5:54
  Speaker 2: might be two million, which is already aggressive. It sells
• 5:58
  Speaker 2: for two point four. You congratulate the buyer and you
• 6:00
  Speaker 2: know their plans are to be a developer, and I
• 6:03
  Speaker 2: understand development. Then you're like, WHOA, they're paying for today
• 6:07
  Speaker 2: but requiring future prices, so.
• 6:10
  Speaker 1: They're backing too much into it, asking the market too much.
• 6:14
  Speaker 2: They're asking the market to bail them out. And for
• 6:16
  Speaker 2: me as a it's fantastic. Yes, you want me to talk,
• 6:20
  Speaker 2: We're here to talk about you know, the other side
• 6:22
  Speaker 2: of the coin. I think the risk is to people
• 6:24
  Speaker 2: growing costs. The development space as a whole. Right now,
• 6:27
  Speaker 2: Land is at an all time high. Building costs is
• 6:29
  Speaker 2: at an all time high, and generally speaking, in prices
• 6:33
  Speaker 2: over the last year or two have stabilized. Though there's
• 6:36
  Speaker 2: three key factors to development. Buy well, build well, sell well.
• 6:40
  Speaker 2: It's very hard to do three of them, almost impossible,
• 6:43
  Speaker 2: but you need to do too and most people are
• 6:46
  Speaker 2: doing one. And I hope that's enough.
• 6:48
  Speaker 1: You make your profit when you buy, is that.
• 6:51
  Speaker 2: Not if you buy off of us? I want that clear.
• 6:53
  Speaker 2: A good agent job is to make sure that they
• 6:55
  Speaker 2: optimize the sale price by running a great campaign where
• 6:59
  Speaker 2: I buy well. When I'm buying is I tend to
• 7:01
  Speaker 2: buy two buyers agents. So again in massive space, I'll
• 7:05
  Speaker 2: summarize that in two sentences. A good buyer's agent is free.
• 7:08
  Speaker 2: They cost you nothing. They cover their cost. A bad
• 7:10
  Speaker 2: or average bars agent is just another stamp duty. So
• 7:14
  Speaker 2: there is opportunity to buy it. There's a lot of
• 7:16
  Speaker 2: I think my industry, it has been described at today's
• 7:18
  Speaker 2: conference ninety seven percent poor professionals, five percent good, two
• 7:22
  Speaker 2: percent great. So if you're buying after ninety seven percent
• 7:25
  Speaker 2: who are lazy and not given good advice, and often
• 7:28
  Speaker 2: it's the vendors fault. They're hiring the agent who's the cheapest,
• 7:32
  Speaker 2: they're avoiding marketing costs, they're thinking about pennies when they're
• 7:35
  Speaker 2: transacting millions.
• 7:37
  Speaker 1: Right. It's funny, isn't it. It's common in all industries.
• 7:39
  Speaker 2: Yeah, there's always no industries.
• 7:41
  Speaker 1: You know that the ten percent of the eighty percent
• 7:43
  Speaker 1: of the business, and there's a reason for that. Tell
• 7:46
  Speaker 1: me about something I wanted to ask you. Would you say?
• 7:50
  Speaker 1: It's how would you categorize the atmosphere at the moment
• 7:53
  Speaker 1: in terms of their property market. Sometimes there's issues that
• 7:56
  Speaker 1: are very clear, like that the rates of sky high
• 7:59
  Speaker 1: rates and sky high right now they're actually starting to fall.
• 8:02
  Speaker 1: Some people say prices are very expensive, Well they are,
• 8:05
  Speaker 1: but so they are all around the world. How would
• 8:08
  Speaker 1: you categorize this market at the moment?
• 8:09
  Speaker 2: I think if we're talking about a national level and
• 8:12
  Speaker 2: a global level, it's an interesting time. There's a lot
• 8:15
  Speaker 2: of stress on all markets, a lot of political stress,
• 8:18
  Speaker 2: financial stress, stock level stress, there is a lot going on.
• 8:22
  Speaker 2: Affordability seems to be an issue for some and let's
• 8:26
  Speaker 2: be real, the richer getting richer and that's just the case,
• 8:28
  Speaker 2: and that's probably a lot of your listeners.
• 8:30
  Speaker 1: And in fact it's the fact this came up on
• 8:33
  Speaker 1: the earlier podcast on the are A conference, a very
• 8:36
  Speaker 1: similar observation. They know that and they're going for that
• 8:44
  Speaker 1: end of the market as which is something. But so
• 8:46
  Speaker 1: that's a characteristic of the market at the moment. Maybe
• 8:48
  Speaker 1: it's separating to some degree.
• 8:50
  Speaker 2: The gap is getting bigger on a global level and
• 8:53
  Speaker 2: a local level. I think markets are marginally more attainable.
• 8:58
  Speaker 2: I'm not an expert in your law market. Which is
• 9:00
  Speaker 2: Melbourne not a local market substantial?
• 9:02
  Speaker 1: Well, it's a national show with people listening from all markets.
• 9:05
  Speaker 2: Yes, okay, yeah, so my as you said, Queensland agent,
• 9:08
  Speaker 2: Melbourne is an area where and when I speak to
• 9:11
  Speaker 2: my more successful clients, they're fully exploring Melbourne. Now, Melbourne
• 9:14
  Speaker 2: is a global city in terms of stature and population
• 9:18
  Speaker 2: and what it offers. Yet it's median house price correct
• 9:21
  Speaker 2: me if I'm wrong, as our Brisbanes has marginally got ahead.
• 9:26
  Speaker 2: So that to me is that doesn't make sense in
• 9:29
  Speaker 2: a you know, on a global or national level, if
• 9:32
  Speaker 2: I was an investor, now, yeah, I look at Queensland,
• 9:34
  Speaker 2: don't get me wrong. And even Sydney Like Sydney, Sydney's
• 9:38
  Speaker 2: always been a very aggressive market since the Olympics, like
• 9:42
  Speaker 2: growth it had the four years leading up. And you
• 9:44
  Speaker 2: can talk to experts and there's data there and all
• 9:47
  Speaker 2: these different forms of information where they tell you that
• 9:49
  Speaker 2: market is going to correct. By god, have they been wrong.
• 9:52
  Speaker 2: I mean they've been wrong for several twenty five years.
• 9:54
  Speaker 1: They've been five years exactly. Look, well, take a short break.
• 9:57
  Speaker 1: We'll be back in a moment. Hello, Welcome back to
• 10:11
  Speaker 1: The Australian's Money Puzzle podcast. James Kirby here today at
• 10:15
  Speaker 1: the ERIC Conference in the Gold Coast and I'm talking
• 10:18
  Speaker 1: to Tonio Diharty from the McGrath Group. Tony is an agent,
• 10:22
  Speaker 1: a top rating agent in the state of Queensland, but
• 10:25
  Speaker 1: with both national and international. I would suggest Tony. So
• 10:32
  Speaker 1: one of the things we were saying there about property
• 10:34
  Speaker 1: and whether it's expensive or not, is it expensive amount
• 10:37
  Speaker 1: I don't really know. You look at prices in all
• 10:41
  Speaker 1: other countries. We were just talking about that, since we
• 10:43
  Speaker 1: both know Ireland and Dublin property prices are higher than here.
• 10:47
  Speaker 2: Dublin property prices are the small economy alarming.
• 10:50
  Speaker 1: Yeah.
• 10:51
  Speaker 2: Again, we don't need to overly get into it because
• 10:53
  Speaker 2: I don't know how many of your listeners are from Dublin.
• 10:55
  Speaker 2: But I think there's mismanagement there with housing supplies and
• 10:58
  Speaker 2: people are going for the safer economy that is Dublin.
• 11:01
  Speaker 2: There's plenty of opportunity to buy value across Europe and
• 11:04
  Speaker 2: in Ireland, just not in Dublin. Personally speaking, I'd be
• 11:07
  Speaker 2: very slow, and I'm no expert in that market I'm
• 11:09
  Speaker 2: talken about as a consumer, I'd be very slow to
• 11:12
  Speaker 2: bout hinting those markets.
• 11:13
  Speaker 1: Yeah, so you don't have that, you don't have that
• 11:15
  Speaker 1: concern here.
• 11:16
  Speaker 2: I don't have that concern here. We've got more than
• 11:19
  Speaker 2: one string to our bow. Yeah, you know, there's so
• 11:21
  Speaker 2: many industries here. It's a country that has continuously grown
• 11:24
  Speaker 2: population wise, and you're surrounded by massive economies Asian economies,
• 11:29
  Speaker 2: Middle Eastern economies. Yes, and it's a safe if you're
• 11:32
  Speaker 2: a wealthy individual from these foreign countries. Your money is
• 11:36
  Speaker 2: safe in Australia. You're going to take it out of
• 11:38
  Speaker 2: your bank account tomorrow.
• 11:39
  Speaker 1: At least you have a stability.
• 11:40
  Speaker 2: There's an element of stability, you know. It's not a communism.
• 11:43
  Speaker 1: Yeah, there isn't. Sovereign risk isn't something that's really on
• 11:46
  Speaker 1: the table. I want it now. On this segment, I
• 11:49
  Speaker 1: want to ask you as an agent. Everyone listening to
• 11:52
  Speaker 1: this show will sell property regularly in one way or another.
• 11:56
  Speaker 1: Tell us about how someone should select in agents and
• 11:58
  Speaker 1: how they should get their pretty ready for sale.
• 12:01
  Speaker 2: Okay, so two massive questions. Selecting an agent, I would
• 12:05
  Speaker 2: be going off performance. Who's the guy or girl in
• 12:08
  Speaker 2: your geographical area? Remember this is a geographical sport. You
• 12:11
  Speaker 2: hire somebody who's quite dominant in your area. You sit
• 12:15
  Speaker 2: them down and you talk to them. The reason why
• 12:17
  Speaker 2: you should interview if you don't have a relationship two
• 12:20
  Speaker 2: or three agents. You should disregard fee, disregard marketing because
• 12:25
  Speaker 2: all too often a vendor will say to me, oh,
• 12:27
  Speaker 2: we want to work with you, but your marketing budget
• 12:29
  Speaker 2: is eight thousand and this guy's four thousand. That's not
• 12:32
  Speaker 2: a reduced marketing budget. That's a reduced level of exposure.
• 12:35
  Speaker 2: So my suggestion would be interview the high performers that
• 12:39
  Speaker 2: have you know, you've seen, you've noticed in your area,
• 12:42
  Speaker 2: sit them down and see who you feel as though
• 12:44
  Speaker 2: you can trust in a more holistic way. I find
• 12:47
  Speaker 2: that your gut will tell you who's telling you the
• 12:49
  Speaker 2: truth and who's over promising, and.
• 12:51
  Speaker 1: What way would that person the better agent? I mean,
• 12:54
  Speaker 1: I'll obviously get a better price, right, but what do
• 12:56
  Speaker 1: they do that makes them Superior's.
• 13:00
  Speaker 2: See, it's not one thing, it's everything. It's not one thing,
• 13:02
  Speaker 2: it's everything. It's hard to define success in one question
• 13:05
  Speaker 2: in fifteen seconds, but it is everything. So what does
• 13:08
  Speaker 2: that look like? You mentioned presentation? The most important thing
• 13:11
  Speaker 2: is in a campaign when it comes to optimization of
• 13:13
  Speaker 2: a sale price presentation? How do you bring emotion into
• 13:17
  Speaker 2: a problem? So it starts by it might be a
• 13:19
  Speaker 2: lick a Paine new Carpets handyman to fix all the
• 13:23
  Speaker 2: the imperfections. You've got a building and Pett report done again,
• 13:26
  Speaker 2: so you find anything about I might find in advance,
• 13:28
  Speaker 2: and you fix it. Styling a home. Almost every home
• 13:31
  Speaker 2: that we sell now is style. Yes, yes, the reason
• 13:33
  Speaker 2: for that is emotion. You want that man and woman,
• 13:36
  Speaker 2: that husband and wife to walk in the door and
• 13:38
  Speaker 2: really want it and really want it. Yeah, it is
• 13:40
  Speaker 2: a start. Which is this is it's sexist and accurate.
• 13:43
  Speaker 2: It says that women make the fundamental decision when buying homes.
• 13:46
  Speaker 2: We kind of know that, but what you may not
• 13:48
  Speaker 2: know is ninety two percent of the time. So you
• 13:50
  Speaker 2: need to really make the home pop is the questionable
• 13:55
  Speaker 2: terminology we use. But you want that husband and wife
• 13:58
  Speaker 2: to walk in.
• 13:58
  Speaker 1: To buy it as a home, as a property as
• 14:01
  Speaker 1: That's very interesting. Yes, I see, given buy.
• 14:04
  Speaker 2: Houses, you need to appeal to them and if they wanted,
• 14:07
  Speaker 2: price becomes less. But in a reason everybody's got capacity.
• 14:10
  Speaker 2: But you want them to buy with emotion and justify
• 14:13
  Speaker 2: with logic, not buy with logic because logically I can
• 14:17
  Speaker 2: get you a better price to a motion than I
• 14:18
  Speaker 2: can through logic.
• 14:20
  Speaker 1: That's very interesting. That's very interesting. All right, take short break, folks.
• 14:23
  Speaker 1: I want to one or two more key questions for Tony.
• 14:26
  Speaker 1: Back in a moment. Hello, Welcome back to the Australian's
• 14:37
  Speaker 1: Money Puzzle podcast. James Kirby here, but Tony or Dougherty
• 14:40
  Speaker 1: from McGrath real Estate. Tony what's the one thing that
• 14:45
  Speaker 1: at the end of each day that consistently you get
• 14:48
  Speaker 1: annoyed with with you? What the mistakes that people make,
• 14:52
  Speaker 1: that the clients make. Is it that they expect too much,
• 14:55
  Speaker 1: they expect too little, too fast? Is there something that
• 14:58
  Speaker 1: is a something? So that is a constant sort of
• 15:02
  Speaker 1: bear bug.
• 15:03
  Speaker 2: It'd be more about my industry than with my clients.
• 15:06
  Speaker 2: And I suppose it's people hiring. We've got high market
• 15:09
  Speaker 2: share in the area we work in. High market share
• 15:12
  Speaker 2: means in thirty percent of what you say of your area,
• 15:16
  Speaker 2: So that means seven out of ten people go to
• 15:18
  Speaker 2: the market without meeting with the most dominant person in
• 15:22
  Speaker 2: the area. So my personal selfish pet hate is the
• 15:25
  Speaker 2: fact that Hey, give us an opportunity, don't hire us
• 15:28
  Speaker 2: because you don't like us, but don't not interview us.
• 15:30
  Speaker 2: And that's my entitled little line there, guys, just so
• 15:33
  Speaker 2: you heard it, my pet hate. The thing that I
• 15:35
  Speaker 2: feel the most sorry for vendors is they're often going
• 15:38
  Speaker 2: with the agent that seems to be cheap. Is that
• 15:41
  Speaker 2: the start yes, turns out to be the most expensive. Yes,
• 15:45
  Speaker 2: I've got a list of agents. When a friend of
• 15:46
  Speaker 2: mine rings me and says I'm looking to buy something here,
• 15:49
  Speaker 2: I'll say, don't worry about streets, worry about agents. The
• 15:53
  Speaker 2: right agent can get you into a property in twenty
• 15:55
  Speaker 2: twenty five for twenty twenty the wrong agent, but the
• 15:58
  Speaker 2: right for them can work rewind the clock back two years.
• 16:01
  Speaker 2: So there's plenty of very average agents out there. Sav
• 16:06
  Speaker 2: the savvy's developers I know are picking the eyes out
• 16:08
  Speaker 2: of the weak agents. And the cost of mom and
• 16:10
  Speaker 2: dads who've lived there is for decades. Yes, we're trusting
• 16:13
  Speaker 2: the professional and all because they heard the wrong guyer
• 16:15
  Speaker 2: girl right.
• 16:16
  Speaker 1: It's amazing, isn't it. It's still so individual personable really
• 16:20
  Speaker 1: as a business. Yeah, yeah, very interesting. I have a
• 16:24
  Speaker 1: couple of questions if you bear with me. We take
• 16:25
  Speaker 1: questions every week. If you want to add to subtract
• 16:28
  Speaker 1: to this, you can. The first is from Evan Hi James.
• 16:31
  Speaker 1: I love the info around the property in super This
• 16:34
  Speaker 1: was the show Tony where we talked about whether owning
• 16:36
  Speaker 1: property inside superannuation made sense any longer. But there's so
• 16:40
  Speaker 1: many rules now there's the new super tax, which is
• 16:42
  Speaker 1: going to crimp things further, and the number of people
• 16:45
  Speaker 1: who are actually prepared to lend two people in their smsfs.
• 16:50
  Speaker 1: So the banks have run away from the business completely.
• 16:53
  Speaker 1: Evan asks in property, can I run my own business
• 16:56
  Speaker 1: out of? How does that work? That's the best one, Evan.
• 16:58
  Speaker 1: That's called direct property, where you can actually put if
• 17:01
  Speaker 1: you own a business. And let's say it's called Evans Toys.
• 17:04
  Speaker 1: And this, by the way, is never advice, it's information only.
• 17:07
  Speaker 1: But let's say there's a company called Evans Toys. You
• 17:09
  Speaker 1: have your own super fund, Evans Toys can actually the
• 17:13
  Speaker 1: building that Evans Toys works out of can be owned
• 17:16
  Speaker 1: by your superfund and pay your superfund rent. That is
• 17:19
  Speaker 1: it at its most, at its very best. That's how
• 17:22
  Speaker 1: it works. I'm sure you can. We can develop that
• 17:24
  Speaker 1: on another show. Thanks Evan, and Kathy asks what are
• 17:27
  Speaker 1: property depositive bonds? Would you like to tell people what
• 17:31
  Speaker 1: they are? Tony? And do you get people? Actually? Do
• 17:34
  Speaker 1: you like it when that happens and someone says, I
• 17:35
  Speaker 1: don't have a deposit, but I've got a property deposit bond.
• 17:38
  Speaker 2: Look at Okay, So deposit bond is where you don't
• 17:40
  Speaker 2: have you bind a property off me. We're asking for
• 17:42
  Speaker 2: a five percent deposit and rather than you transferring one
• 17:44
  Speaker 2: hundred thousand dollars to our trust account. You're going to
• 17:47
  Speaker 2: the bank, and the bank are essentially giving you in
• 17:49
  Speaker 2: all money a bank guarantee. Yes, So to me, when
• 17:52
  Speaker 2: I advise my clients, they're as strong as the lender.
• 17:55
  Speaker 2: So if the bank guarantees from a top tier bank
• 17:58
  Speaker 2: eighty percent at the time, that was a randomness did
• 18:00
  Speaker 2: pulled out of the sky. What was your lying there
• 18:03
  Speaker 2: that that was? This is not advice, it was just
• 18:05
  Speaker 2: information like that. I would have no problem telling my
• 18:08
  Speaker 2: client if it's a top tier bank that this is okay,
• 18:11
  Speaker 2: because it is essentially revenue, and.
• 18:13
  Speaker 1: It's normally with someone who knows the money's kind of
• 18:15
  Speaker 1: come in. It's just timing, yeah, or they're.
• 18:17
  Speaker 2: Willing to give you equity. The bank I might saying, okay,
• 18:19
  Speaker 2: we know you've got this, so therefore we're happy to
• 18:21
  Speaker 2: give you a line of credit essentially. But yeah, so
• 18:25
  Speaker 2: it's not common.
• 18:26
  Speaker 1: It's not common still even at the higher end.
• 18:29
  Speaker 2: Even at the higher end, like when I say not common,
• 18:31
  Speaker 2: five ten percent of the time, I wouldn't even be
• 18:33
  Speaker 2: one intent to be honest with you. So there's nothing
• 18:35
  Speaker 2: wrong with it. Again, if it's a good lender out
• 18:37
  Speaker 2: of no problem saying that cline to mind, and again
• 18:40
  Speaker 2: I'd ask them to get their own advice. I would
• 18:41
  Speaker 2: have no problem recommending a top tier banks bank guarantee. Okay, pause,
• 18:45
  Speaker 2: upond in your words.
• 18:47
  Speaker 1: And ironically, Kathy, of course, the biggest charlector in the
• 18:49
  Speaker 1: country is the Albaneza government because they've just about introduced, well,
• 18:53
  Speaker 1: they're about to introduce the universal Property Guarantee, which means
• 18:56
  Speaker 1: anyone by their first home, all they need is five
• 18:59
  Speaker 1: percent and deposit and the other fifteen is covered by
• 19:02
  Speaker 1: the government guarantee. That's the universal Government guarantee scheme for
• 19:06
  Speaker 1: first time virus about to begin on July one. Okay,
• 19:10
  Speaker 1: we'll leave it there, Tony, thank you very much for coming.
• 19:13
  Speaker 1: Great to talk to you. Pleasure and keep those emails running.
• 19:16
  Speaker 1: The money Puzzle at the Australian dot com dot au