May 27, 2025 • 25 mins
Property prices keep rising, and if you’re not already on the property ladder, it might feel like it’s just getting further and further out of reach. Join Canna Campbell - a financial planner for 20 years - and Fear & Greed's Michael Thompson as they put together 10 ideas to help you get on the property ladder, including a look at the grants and support available for new homebuyers.
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The information in this podcast is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or other offer document prior to acquiring any financial product.
Canna Campbell is a Corporate Authorised Representative and Corporate Credit Representative of Wealthstream Financial Group Pty Ltd ABN 35 152 803 113 Australian Financial Services Licensee AFSL 412079.
See omnystudio.com/listener for privacy information.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to How Do They Afford That? The podcast that
peaks into the financial lives of everyday Australians. I'm Michael Thompson.
I'm an author and the co host of the podcast
Fear and Greed business news. As always, I'm with Canna Campbell,
financial planner, founder at Sugar Mummer TV, the financial literacy
platform covering YouTube, podcast books, Instagram, threads, TikTok and more. Hello, Canna.
Speaker 2 (00:22):
Hello.
Speaker 1 (00:23):
Every time I introduce you, I remember the time that
I accidentally said sugar Mummy TV and I nearly make
myself laugh.
Speaker 2 (00:33):
You know a lot of people have done that.
Speaker 1 (00:35):
Oh really, it just flows. I'm sorry anyway, that is
why I sounded like I was about to laugh just then.
Today a serious topic actually, but hopefully one that we
can provide a bit of inspiration on because we've got
property prices. They just keep rising and if you're not
already on the property ladder, it might feel like it
(00:57):
is just getting further and further out of reach. So
today we are doing one of my favorite things. We
are putting together a list and this is a list
of ten ideas to help you get on the property ladder.
So it's quite a it's quite a challenge. Ten.
Speaker 2 (01:17):
I love a challenge. I'm not afraid of a challenge.
Bring it on.
Speaker 1 (01:20):
Who was this? Four? Who is this? And obviously this
is this is None of this is financial advice. You
need to get professional advice that suits your own circumstances.
This is just maybe some ideas to kickstart conversations and
to kickstart your own research. But who is this? Episode? Four?
Speaker 2 (01:37):
Okay, So I like to think from my heart, this
is predominantly for first home buyers. So you know, obviously,
once you put your foot in on the property ladder,
it's so much easier to state on it. However, also,
I'm including single parents and here, whether they've owned a
home before or not, and any for anyone really that's
just trying to put a roof over their heads that
(01:58):
they can call their own, and if it's just for
their own sense of stability in life.
Speaker 1 (02:03):
And it's funny when we say first home buyers, you
kind of have this image that like you got someone
who's like twenty two or something. That's not the case
that I know a lot of people in their thirties
who are exactly like this. Going you see the rising prices,
the average the median house price is going up every
(02:25):
month faster than I can save a deposit, and that
must be so overwhelming.
Speaker 2 (02:31):
Oh, that's exactly what happens. And you know, you're left
with a situation where if you can't keep up, which
ninety nine point nine percent of people can't, you are
having to buy a smaller place or a different area
that you originally started, or you're completely priced out of
the market, which is so heartbreaking, it really is.
Speaker 1 (02:50):
So that's why we want to come up with these ideas,
ten of them. You say that you are up for
the challenge. Let's get into the list with idea number one. Obviously,
we'll start at number one.
Speaker 2 (03:02):
Let's start with the government ones, because there's a lot
of different ones, and I think people get a bit
overwhelmed as to how many options there are and what
might be right for them.
Speaker 1 (03:09):
Please.
Speaker 2 (03:09):
The first, obviously is the first home guarantee. So this
is where the government acts as you're guarantee so that
you don't necessarily need that you know, twenty percent deposit,
and it means you can avoid lender's mortgage Insurance l MII,
so in some circumstances you can five as little as
five percent and the cost of mortgage insurance can easily
be between ten to thirty thousand dollars. The substantial savings
(03:33):
right there.
Speaker 1 (03:34):
And do you just want to explain what lender's mortgage
insurance is for people who have heard that term LMI,
just explain what it actually is.
Speaker 2 (03:44):
So it's a financial product that essentially protects the banks
if you can't service your loan, and it does it
for a particular period of time, you know, to protect
you from defaulting before the property is sold. So it's
a safety net not for you, but you pay for it.
It's for the bank.
Speaker 1 (04:00):
Okay, Yeah, So it's insurance for them, and they built
into your payments, and it is because you don't have
enough of a deposit, you don't have enough equity in
the property that if they were to have to sell
it in a hurry, they wouldn't necessarily recover all of
exactly the money that they've loaned to you. Yes, okay, sorry,
I well and truly interrupted you while you were.
Speaker 2 (04:20):
I was getting like launching into my.
Speaker 1 (04:22):
List, you were getting some momentum up. So that's the
federal government, isn't it. Yes, first time guarantee.
Speaker 2 (04:27):
And that's you know, Obviously there are income caps that apply,
and there are property caps as well. The next one
is the First Home Super Savor scheme.
Speaker 1 (04:36):
Is this number two? This is number two First Home.
Speaker 2 (04:40):
FHSSS super Scheme.
Speaker 1 (04:44):
Who names these things to you?
Speaker 2 (04:46):
There is such a mouthful, but this is actually one
of my least favorite ones. But it's been to fifty
thousand dollars. There are very strict rules involved. You've got
to get quality advice. If you change your mind, it
is lightly disastrous because you can't get that money out,
and you've got to be meticulous with your timing because
you have to apply to get the money out.
Speaker 1 (05:07):
So how does it work? Is it sorry that you
are when it says super in there and does that
that's not referring to your super anyway?
Speaker 2 (05:16):
Yes, So you can look at making extra contributions into
your superannuation, which includes salary sacrificing in order to get
money into your super which you can then pull up
to fifty thousand dollars out. Okay to buy a property,
but there's particular it's quite a complicated process and the timings.
You know, you get approval with that approval on your
lasts for twelve months, so if you haven't settled on
(05:37):
your property within that timeframe, you potentially lose it. So
you need a mortgage broker that actually specializes in the
FHSS scheme. Now, it can be really good though for
people who plan on buying a property saying five years time.
But we almost need to do an episode completely dedicated
to this because there's I feel like there's a lot
of traps with this and things you need to be
(05:58):
super careful with that no one really talks about. But
that is definitely a way of I guess if you
don't have much self control with money, it is, it
can be quite a helpful tool because it keeps that
money away from you know, being distracted and going, well,
am I just going blow it on a trip to Europe?
Speaker 1 (06:14):
Yeah? It's well and truly locked away, isn't it until
all of a sudden you are able to access it
for this But that definitely feels like one of those
ones where you would not do it without knowing that
it is right for you, without getting some advice on it.
Speaker 2 (06:27):
And reading the fine print, like the devil is in
the details.
Speaker 1 (06:31):
Okay, So that's that was number two first home super
Savor Scheme.
Speaker 2 (06:35):
So next is obviously the stamp duty concessions and exemption,
so they're not obviously as sexy as a grant, but
it does help your overall costs, and they obviously vary
from state to state and depending on the size of
the property and so.
Speaker 1 (06:49):
And stamp duty is really you know what stamp.
Speaker 2 (06:53):
Duty is a it's my blood boil.
Speaker 1 (06:56):
Absolute nonsense. It is the most inefficient tax in this
country because it is this tax that is just attached
to the price of selling buying a home. And what
it does is it discourages people from downsizing and changing
homes because they suddenly hit with this with stamp duty,
(07:18):
when really it doesn't serve a purpose except for revenue.
Speaker 2 (07:23):
Exactly. I can't go in that, so start, I won't stop.
So we are going to take a deep breath.
Speaker 1 (07:29):
I think you and I are aligned in our anger
over something. Really, it's you getting angry and me going, oh,
come on, Canna, it's me getting angry, and you go,
you don't know what you're talking about. But today we
are united. It's a nice feeling, isn't it.
Speaker 2 (07:42):
Mark the date?
Speaker 1 (07:43):
I will okay, So stamp duty concessions and grants, they
do as you say, very though, state to state, territory
to territory.
Speaker 2 (07:51):
Next is the Family Home Guarantee. This one I think
is really important and I love this and I just
wish there was more of this and it was a
little bit better. But it's for single parents, so you
can buy a home with as little as a two
percent deposit, and there are limited spots, so I think
that about maybe five thousand spots each year. There's an
(08:13):
income cap up to one hundred and twenty five thousand
dollars a year, and there's no LMI so and you
don't even actually have to be a first home buyer
to qualify for this. So it is a great way
for single parents to help put a roof over their
children's heads and create a sense of stability and safety,
(08:34):
particularly when you know, you look at what's going on
the rental market and how you know people are being
having to move all the time, and then that impacts
kids and having to change schools, change friends, very you know,
it can really impact, you know, a little person's life.
So I love this one. I just wish there was
more behind it, But this is a.
Speaker 1 (08:53):
Federal government scheme, I'm assuming.
Speaker 2 (08:55):
And there is a danger though as well. So whilst
I love it, I think it's great, You've also got
to bear in mind you've got a single parent taking
on a really big mortgage. If they're taking if you've
got to say, a two percent deposit, that's a huge
mortgage to be wearing on your own shoulders on one
soul income. That's also looking after, you know, financial dependence,
like young children.
Speaker 1 (09:16):
And with all of these there would be a bunch
of criteria that you need to meet in order to
be eligible.
Speaker 2 (09:21):
Yes, income cap and so forth.
Speaker 1 (09:23):
Yeah, yeah, absolutely, got to have children. Yeah, actually that's
probably important for that. But you're right that that feels
like there is a real social purpose behind that one,
rather than just the noble goal of helping people to
get into the market. This feels like it is it
does have that social value as well of giving kids
the stability of a home that the family owns.
Speaker 2 (09:47):
I think it's a big step in the right direction.
But there is lots of space for us to do
better here.
Speaker 1 (09:52):
Wow, that is amazing. So that's number four, the family
Home Guarantee. At number five.
Speaker 2 (09:57):
The simple first home owner grant. Ah that o. Yeah,
so I remember I got mine. I was so satisfied
it was only a little back then. But this is
a once off cash payment and it's for new builds
now and obviously off the plan properties.
Speaker 1 (10:12):
Okay. And that is a federal yes, so it applies
around the country. Again, criteria would apply and you can
only get it once sally, Yes, you're a first home
buyer once okay. And that has changed over the years
because I remember it used to be quite large, and
(10:34):
it used to be for any property up to a
certain value, and so clearly it changes based on well
really also what the government I suppose is also trying
to achieve with it as well by kind of pushing
people into new builds as well, it kind of freeze
up older.
Speaker 2 (10:51):
Storm Lady building construction market.
Speaker 1 (10:54):
So okay, so they're our first five.
Speaker 2 (10:58):
I have one more for government support.
Speaker 1 (11:01):
Oh really yes? Oh okay, go for it.
Speaker 2 (11:04):
So this is the Shared Equity scheme.
Speaker 1 (11:06):
Oh yes, yes, this is an interesting one state based.
Speaker 2 (11:10):
So this is where the government contributes up to twenty
five percent towards the cost of your property. So it
means you're taking out up to you know, twenty five
percent smaller mortgage. There are very strict rules, like it
cannot be rented out you've got to live in it.
The downside is that you're carrying all those ongoing costs.
So the government are kind of free loading off those
(11:34):
ongoing expenses because they still get to benefit in any
gain of the property by up to twenty five percent.
But yet you're paying for all of it and just
even just even actually adding value or doing any sort
of work to that property. You're thinking about just you know,
strato insurance, water, electricity, wear and tear. You're wearing all
of those costs while they benefit from this. So it's
(11:56):
definitely an option that I think could help a lot
of people, depending on their goals.
Speaker 1 (12:01):
Okay, and so the shared equity scheme that does vary
from state to state, there might not be equivalents in
every state, correct, Okay, So really this is one of
those things where governments of all varieties have done something
that they have got kind of different versions of similar schemes,
and you really need this is where this is where
(12:22):
a mortgage broker can help you. Right that you can
go along as a first home buy a tool mortgage
broker and say hey, can you help me understand what
I am eligible for?
Speaker 2 (12:32):
Yes, And you need someone who's actually specialized in this
area because not all mortgage brokers know how to do
this correctly, and it is speaking to mortgage brokers about
this particular process. With these various different government options there
is it is a little bit fitly.
Speaker 1 (12:47):
Okay, all right, so they're the first six. They are
all government based. Can I have schemes?
Speaker 2 (12:55):
Just put my two cents worth in before we take
a quick break.
Speaker 1 (12:58):
Of course, I have never ever stopped you from sharing
an opinion on this podcast.
Speaker 2 (13:04):
All right, So government schemes absolutely, you can give you
a massive leg up. And for some people there are
really the only way they're going to be able to
get into the property market. And I think this is
something we should all be really grateful for and hopefully,
you know what, we appreciate, appreciate, so hopefully they're only
geting to get better here. But at the end of
the day, they're never substitutes for the hard work, the discipline,
(13:29):
the patients, and the serious self control and responsibility that
comes with budgeting. So that you can benefit from this.
This is one of many great stepping stones in your
financial journey. And you know this allows you to buy
a home, but also allows you to build and grow
financial harmony in your life long term.
Speaker 1 (13:47):
Yeah, okay, So it is the government doing what you
would expect of a government, which is providing support to
people who need it, but it doesn't replace the importance
of the hard work in the first place. Don't think
anyone kind of goes into it expecting these support schemes
to do all of the heavy lifting for them. That
really you're just doing it knowing that, Hey, I'm doing
(14:10):
everything I can to save a deposit. I know that
I can serve as a mortgage. I just need some
help to kind of hit that minimum.
Speaker 2 (14:16):
And then pay that mortgage off.
Speaker 1 (14:18):
Yeah, indeed. Okay, so we have got our first six
on the list. We are sixty percent of the way
through it. We will take a quick break and get
the final four because you've got something that aren't related
at all to government. These are other ideas altogether, right, correct,
A very exciting We'll be back in a second cana.
(14:40):
We are talking about ideas ten ideas to help get
on the property ladder. So far, there's been a lot
of government support and it was actually really useful to
hear you go through those because you hear a lot
of those the terminology thrown around to actually understand kind
of how they all work together or which ones you
might be eligible for, is really really useful. Can you
(15:03):
give us four more ways, four more ideas to help
get on the property ladder starting with number seven.
Speaker 2 (15:09):
Actually this is going to be a ten point ten list.
So the next tip number seven, I'm actually going to
combine two into one, So that is group renting and
co op housing. So living with friends that are also
saving up for a home. You know, you say, three friends,
we all want to buy our own homes. Cost of
living is really challenging find a place together. You're all motivated,
(15:34):
you can keep each other accountable, you're all on the
same similar budgets, and you can also support each other
for when you know there are setbacks and challenges that
come through. So that's a way of, you know, I guess,
being in alignment with each other and you know, you've
got three brains instead of one just focusing on one
goal and you can all sort of get through there together.
Speaker 1 (15:53):
I suppose that would be beneficial if you are trying
to live a very low cost lifestyle, where if you
are with two other people that are doing exactly the
same thing, you certainly don't have that kind of haves
and have not division within your household. Then because you're
all in the same boat, you're all working towards the
same goal. You just hope that you don't all end
up competing for the same same place at auction.
Speaker 2 (16:16):
I hadn't thought about that, but look, what I'm trying
to say is like energy is contagious. So if you
go and surround yourself with people who are focused and
driven and inspired, is probably going to rub off on you. Okay,
just like my financial advice drops off on you.
Speaker 1 (16:32):
It does. It rubs off very very slowly. It's like
a glacier like wax on. So that is number seven
group renting, co op housing, co op housing.
Speaker 2 (16:44):
This is we're still in number seven.
Speaker 1 (16:46):
Don't don't right rush me, trying to wrap you up.
Speaker 2 (16:50):
So there was an interesting article that came out, i think,
on the ab C the other weekend talking about this
sort of taking off and this could potentially be a
solution to obviously the housing short So cop is where
a group of people together get a block of land
and they put lots of small homes on the one
particular block, and your rent is capped and it's but
(17:11):
it's capped against your income can't be more than I
think twenty five percent of your income. Now, this obviously
allows people to actually start saving as well, but they're
all because it's a cop you're all responsible for taking
care of the wear and tear of the property.
Speaker 1 (17:28):
You look very skeptical. Yes, yes, ah, this just feels
fraught with problems. Number one, this is huge in Europe, okay,
but we have got very very strict laws in Australia
about kind of the properties, what you can do with
a particular property, and having multiple small dwellings on a
place feels like you would need counsel approval for multiple
(17:51):
developments on there. Trying to cap rents to be what
did you say.
Speaker 2 (18:00):
Of twenty five percent of your income?
Speaker 1 (18:02):
Okay, it feels as though it's actually something that you
wouldn't be able to do with your friends. You would
actually need a company that is running this to come
in and set it up. They would deal with local
government or state government in terms of the approvals for
this project, and then you could just come in and
that would require companies with a social.
Speaker 2 (18:21):
Conscience, Yes, absolutely.
Speaker 1 (18:23):
Which does exist. So I didn't mean to sound kind
of skeptical about that. Because there are a lot of
companies that are doing a lot of good work in
kind of social housing, low cost housing and trying to
help people to get into the market. But it does
feel like this is one of those ones that actually
needs bigger support because we do have a lot of
rules around what you can and can't do with property
in Australia exactly.
Speaker 2 (18:42):
But it's definitely an idea and for young families, you know,
this could be something that helps create that stability without
having to necessarily go and buy.
Speaker 1 (18:52):
For my too negative. Sometimes I was.
Speaker 2 (18:54):
Quite taken aback. I thought it would have pricked up
with curiosity.
Speaker 1 (18:59):
I think my big problem would be just living with
other people.
Speaker 2 (19:02):
Oh yeah, you could not do it.
Speaker 1 (19:04):
No, no, I'm not really a people person.
Speaker 2 (19:06):
No you're not. Thanks, Okay, no, okay.
Speaker 1 (19:12):
Fine, let's move on to number wow, number eight. What's
on the list?
Speaker 2 (19:17):
Okay, this again, I've combined three into one. But it's
a combination of house sitting, dog sitting, being a boarding master,
or o pairing. So we've had tom My Partner on
the show before and he shared that he was actually
a boarding master for a local school in Sydney and
he lived there. I think for a year or two.
(19:39):
His rent was provided and his food was covered and
he had minimal outgoings and he was able to save
up his deposit for his first home. We have an
pair living with us at the moment, and you know,
she's actually working as well. She's a pe teacher. But
it works really well for her because she doesn't have
to worry about having to pay rent and you know,
pay for expensive food, and she can actually save up
(20:02):
money whilst living with us, but also is helping us
out as well with three young children and the madness
of our houses. I also met another couple, and this
was a while ago, but I met them at the
dog park and they are professional dog and house sitters
and they're a couple so that if they get booked
for two different houses, they can just you know, separate
for the week or the month, whatever it may be.
(20:23):
And they work remotely from the houses that they sit in,
so the animals are taking care of the gardens, are
taking care of the houses safe and secure. They're actually
getting paid as well, but they have minimal outgoings.
Speaker 1 (20:35):
You would need to be very well organized for that,
because if you've got a week here and a week there,
like what are you doing in the three days in between?
For instance? Do you need a home base that you
can kind of keep coming back to and are you
paying rent on that when you're not there?
Speaker 2 (20:51):
So, God, I'm doing it, you are, okay? So they
put all their stuff into storage, okay, and when they're
stuck in between, they just use an airbnb if they're
in between properties. But they said it really happens there.
They're in such high demand because people know that their
pets have been taken care of us are away. And
of course stop boarding is really expensive, so sometimes it
can actually be cheaper.
Speaker 1 (21:12):
Okay, all right, Well they're good ideas that give you
somewhere to live while you're saving money. We can kind
of group them together under that category at number nine.
Have we've got two more to go? Numbers nine and ten?
Speaker 2 (21:22):
Nine and ten. Yes.
Speaker 1 (21:24):
So I will promise that I will not be negative
about anything that you say.
Speaker 2 (21:29):
Now you're going to be really negative about number nine.
Speaker 1 (21:32):
But I've just promised.
Speaker 2 (21:34):
God, I just set myself up with failure, all right,
returning to live with parents or other family members whilst
you save aggressively.
Speaker 1 (21:44):
Why would I be negative about that? See, you don't
know me at all, do you. I think, like I'm
already thinking ahead to when kind of my kids have
left home. I would gladly welcome them back. They can
stay and live for a couple of years. I'm at
that point where I'm very clean and I never never
want to let them go. But no, that does make sense.
(22:07):
And if you are fortunate enough you go to be
to have that relationship, to have the relationship, to have
family that live in an area that you're able to
get to, and it's it's kind of compatible with your work,
then why wouldn't you, like, why wouldn't you make the
most of that? And also it might be a pretty
kind of precious time exactly.
Speaker 2 (22:26):
And I have four really close friends who did this,
and two of which were you know, in relationships, married
and with kids. And it was great and they had
an extra set of hands to help up with bathtime
and dinner time. It was a really beautiful bonding moment.
And you know, it allowed them to obviously focus on
saving up as much as possible, and they're now they
(22:49):
are now homeowners, and you know, it's not forever, it's
just a stepping stone, but it is definitely something that's worthwhile.
Considering and if it's not necessarily your parents, perhaps it's
an aunt or uncle or a good parent or you know,
someone else in that family network.
Speaker 1 (23:03):
Okay, I like that one. No negativity here, Cana number ten.
Speaker 2 (23:09):
So this is the I won't saying this is it political,
but it's considered working overseas? Ah, yes, so depending on
you know where you move to and you know what
can be included as part of your contract. You know,
some people go agree to go and work overseas, especially
when their accommodation is paid for, and some organizations will
(23:29):
even pay for children's education as well as you know
transportation costs, flights, and if you're moving to another country
with a different tax system, you know, like Singapore or
Hong Kong, it actually can be a huge opportunity to
save up a substantial deposit. And I know people who've
(23:50):
done this and they're not only have they bought a
place that actually paid the place off.
Speaker 1 (23:54):
Oh wow, yeah that is amazing.
Speaker 2 (23:58):
Yeah, it's life changing, and it's now meant that they're
freed up to be actually focused on investing, not just
chasing the tail with a mortgage your payment.
Speaker 1 (24:06):
Okay, all right, that is ten.
Speaker 2 (24:09):
It's actually technically fifteen if you really want to go
and add up all the individual ones. Oh, what's that saying?
Under promise over deliver you.
Speaker 1 (24:16):
I have certainly over delivered today. So that is ten
slash fifteen somewhere in that there's an abundance of ideas.
We can just say that, right. So you had the
first home guarantee, the first Home super Saver scheme, stamp
duty concessions, Family home guarantee, first home owner grant, the
shared equity scheme, and then into the non government ones,
(24:36):
your group renting and co op housing and your house sitting,
dog sitting, various other kind of ones where you are
looking here pairing being a house master or a boarding master,
living with parents, living with family, or potentially working overseas
and just investigating those options. So there are really these
are kind of grouped into two. You've got your government
(24:58):
support and then you've got your ways to reduce your
living costs while you are saving for that saving for
that deposit, because that is the hard part here, trying
to get that deposit together to get into the market,
because it just keeps on.
Speaker 2 (25:11):
Climbing, exactly. I just never feel like you get there.
And this gives you a bit of a respite to
kind of catch up again.
Speaker 1 (25:17):
Yeah, absolutely, Okay, how do we find you if we
want more information?
Speaker 2 (25:21):
The best place to contact me is through Sugar Mama
on Instagram or Canna Campbell Official.
Speaker 1 (25:26):
And you can hear me every day with Sean Aylmer
on Fear and Greed daily business news for people who
make their own decisions. Thank you for listening to how
do they afford that? Remember to follow on the podcast.
That is absolutely crucial, And the very best thing that
you can do to help spread the word is to
tell somebody else about this episode. Send them the link
if you think they might be interested in hearing some
of these ideas. Thank you very much for your company.
(25:48):
Join us again next week
Welcome to How Do They Afford That? The podcast that
peaks into the financial lives of everyday Australians. I'm Michael Thompson.
I'm an author and the co host of the podcast
Fear and Greed business news. As always, I'm with Canna Campbell,
financial planner, founder at Sugar Mummer TV, the financial literacy
platform covering YouTube, podcast books, Instagram, threads, TikTok and more. Hello, Canna.
Speaker 2 (00:22):
Hello.
Speaker 1 (00:23):
Every time I introduce you, I remember the time that
I accidentally said sugar Mummy TV and I nearly make
myself laugh.
Speaker 2 (00:33):
You know a lot of people have done that.
Speaker 1 (00:35):
Oh really, it just flows. I'm sorry anyway, that is
why I sounded like I was about to laugh just then.
Today a serious topic actually, but hopefully one that we
can provide a bit of inspiration on because we've got
property prices. They just keep rising and if you're not
already on the property ladder, it might feel like it
(00:57):
is just getting further and further out of reach. So
today we are doing one of my favorite things. We
are putting together a list and this is a list
of ten ideas to help you get on the property ladder.
So it's quite a it's quite a challenge. Ten.
Speaker 2 (01:17):
I love a challenge. I'm not afraid of a challenge.
Bring it on.
Speaker 1 (01:20):
Who was this? Four? Who is this? And obviously this
is this is None of this is financial advice. You
need to get professional advice that suits your own circumstances.
This is just maybe some ideas to kickstart conversations and
to kickstart your own research. But who is this? Episode? Four?
Speaker 2 (01:37):
Okay, So I like to think from my heart, this
is predominantly for first home buyers. So you know, obviously,
once you put your foot in on the property ladder,
it's so much easier to state on it. However, also,
I'm including single parents and here, whether they've owned a
home before or not, and any for anyone really that's
just trying to put a roof over their heads that
(01:58):
they can call their own, and if it's just for
their own sense of stability in life.
Speaker 1 (02:03):
And it's funny when we say first home buyers, you
kind of have this image that like you got someone
who's like twenty two or something. That's not the case
that I know a lot of people in their thirties
who are exactly like this. Going you see the rising prices,
the average the median house price is going up every
(02:25):
month faster than I can save a deposit, and that
must be so overwhelming.
Speaker 2 (02:31):
Oh, that's exactly what happens. And you know, you're left
with a situation where if you can't keep up, which
ninety nine point nine percent of people can't, you are
having to buy a smaller place or a different area
that you originally started, or you're completely priced out of
the market, which is so heartbreaking, it really is.
Speaker 1 (02:50):
So that's why we want to come up with these ideas,
ten of them. You say that you are up for
the challenge. Let's get into the list with idea number one. Obviously,
we'll start at number one.
Speaker 2 (03:02):
Let's start with the government ones, because there's a lot
of different ones, and I think people get a bit
overwhelmed as to how many options there are and what
might be right for them.
Speaker 1 (03:09):
Please.
Speaker 2 (03:09):
The first, obviously is the first home guarantee. So this
is where the government acts as you're guarantee so that
you don't necessarily need that you know, twenty percent deposit,
and it means you can avoid lender's mortgage Insurance l MII,
so in some circumstances you can five as little as
five percent and the cost of mortgage insurance can easily
be between ten to thirty thousand dollars. The substantial savings
(03:33):
right there.
Speaker 1 (03:34):
And do you just want to explain what lender's mortgage
insurance is for people who have heard that term LMI,
just explain what it actually is.
Speaker 2 (03:44):
So it's a financial product that essentially protects the banks
if you can't service your loan, and it does it
for a particular period of time, you know, to protect
you from defaulting before the property is sold. So it's
a safety net not for you, but you pay for it.
It's for the bank.
Speaker 1 (04:00):
Okay, Yeah, So it's insurance for them, and they built
into your payments, and it is because you don't have
enough of a deposit, you don't have enough equity in
the property that if they were to have to sell
it in a hurry, they wouldn't necessarily recover all of
exactly the money that they've loaned to you. Yes, okay, sorry,
I well and truly interrupted you while you were.
Speaker 2 (04:20):
I was getting like launching into my.
Speaker 1 (04:22):
List, you were getting some momentum up. So that's the
federal government, isn't it. Yes, first time guarantee.
Speaker 2 (04:27):
And that's you know, Obviously there are income caps that apply,
and there are property caps as well. The next one
is the First Home Super Savor scheme.
Speaker 1 (04:36):
Is this number two? This is number two First Home.
Speaker 2 (04:40):
FHSSS super Scheme.
Speaker 1 (04:44):
Who names these things to you?
Speaker 2 (04:46):
There is such a mouthful, but this is actually one
of my least favorite ones. But it's been to fifty
thousand dollars. There are very strict rules involved. You've got
to get quality advice. If you change your mind, it
is lightly disastrous because you can't get that money out,
and you've got to be meticulous with your timing because
you have to apply to get the money out.
Speaker 1 (05:07):
So how does it work? Is it sorry that you
are when it says super in there and does that
that's not referring to your super anyway?
Speaker 2 (05:16):
Yes, So you can look at making extra contributions into
your superannuation, which includes salary sacrificing in order to get
money into your super which you can then pull up
to fifty thousand dollars out. Okay to buy a property,
but there's particular it's quite a complicated process and the timings.
You know, you get approval with that approval on your
lasts for twelve months, so if you haven't settled on
(05:37):
your property within that timeframe, you potentially lose it. So
you need a mortgage broker that actually specializes in the
FHSS scheme. Now, it can be really good though for
people who plan on buying a property saying five years time.
But we almost need to do an episode completely dedicated
to this because there's I feel like there's a lot
of traps with this and things you need to be
(05:58):
super careful with that no one really talks about. But
that is definitely a way of I guess if you
don't have much self control with money, it is, it
can be quite a helpful tool because it keeps that
money away from you know, being distracted and going, well,
am I just going blow it on a trip to Europe?
Speaker 1 (06:14):
Yeah? It's well and truly locked away, isn't it until
all of a sudden you are able to access it
for this But that definitely feels like one of those
ones where you would not do it without knowing that
it is right for you, without getting some advice on it.
Speaker 2 (06:27):
And reading the fine print, like the devil is in
the details.
Speaker 1 (06:31):
Okay, So that's that was number two first home super
Savor Scheme.
Speaker 2 (06:35):
So next is obviously the stamp duty concessions and exemption,
so they're not obviously as sexy as a grant, but
it does help your overall costs, and they obviously vary
from state to state and depending on the size of
the property and so.
Speaker 1 (06:49):
And stamp duty is really you know what stamp.
Speaker 2 (06:53):
Duty is a it's my blood boil.
Speaker 1 (06:56):
Absolute nonsense. It is the most inefficient tax in this
country because it is this tax that is just attached
to the price of selling buying a home. And what
it does is it discourages people from downsizing and changing
homes because they suddenly hit with this with stamp duty,
(07:18):
when really it doesn't serve a purpose except for revenue.
Speaker 2 (07:23):
Exactly. I can't go in that, so start, I won't stop.
So we are going to take a deep breath.
Speaker 1 (07:29):
I think you and I are aligned in our anger
over something. Really, it's you getting angry and me going, oh,
come on, Canna, it's me getting angry, and you go,
you don't know what you're talking about. But today we
are united. It's a nice feeling, isn't it.
Speaker 2 (07:42):
Mark the date?
Speaker 1 (07:43):
I will okay, So stamp duty concessions and grants, they
do as you say, very though, state to state, territory
to territory.
Speaker 2 (07:51):
Next is the Family Home Guarantee. This one I think
is really important and I love this and I just
wish there was more of this and it was a
little bit better. But it's for single parents, so you
can buy a home with as little as a two
percent deposit, and there are limited spots, so I think
that about maybe five thousand spots each year. There's an
(08:13):
income cap up to one hundred and twenty five thousand
dollars a year, and there's no LMI so and you
don't even actually have to be a first home buyer
to qualify for this. So it is a great way
for single parents to help put a roof over their
children's heads and create a sense of stability and safety,
(08:34):
particularly when you know, you look at what's going on
the rental market and how you know people are being
having to move all the time, and then that impacts
kids and having to change schools, change friends, very you know,
it can really impact, you know, a little person's life.
So I love this one. I just wish there was
more behind it, But this is a.
Speaker 1 (08:53):
Federal government scheme, I'm assuming.
Speaker 2 (08:55):
And there is a danger though as well. So whilst
I love it, I think it's great, You've also got
to bear in mind you've got a single parent taking
on a really big mortgage. If they're taking if you've
got to say, a two percent deposit, that's a huge
mortgage to be wearing on your own shoulders on one
soul income. That's also looking after, you know, financial dependence,
like young children.
Speaker 1 (09:16):
And with all of these there would be a bunch
of criteria that you need to meet in order to
be eligible.
Speaker 2 (09:21):
Yes, income cap and so forth.
Speaker 1 (09:23):
Yeah, yeah, absolutely, got to have children. Yeah, actually that's
probably important for that. But you're right that that feels
like there is a real social purpose behind that one,
rather than just the noble goal of helping people to
get into the market. This feels like it is it
does have that social value as well of giving kids
the stability of a home that the family owns.
Speaker 2 (09:47):
I think it's a big step in the right direction.
But there is lots of space for us to do
better here.
Speaker 1 (09:52):
Wow, that is amazing. So that's number four, the family
Home Guarantee. At number five.
Speaker 2 (09:57):
The simple first home owner grant. Ah that o. Yeah,
so I remember I got mine. I was so satisfied
it was only a little back then. But this is
a once off cash payment and it's for new builds
now and obviously off the plan properties.
Speaker 1 (10:12):
Okay. And that is a federal yes, so it applies
around the country. Again, criteria would apply and you can
only get it once sally, Yes, you're a first home
buyer once okay. And that has changed over the years
because I remember it used to be quite large, and
(10:34):
it used to be for any property up to a
certain value, and so clearly it changes based on well
really also what the government I suppose is also trying
to achieve with it as well by kind of pushing
people into new builds as well, it kind of freeze
up older.
Speaker 2 (10:51):
Storm Lady building construction market.
Speaker 1 (10:54):
So okay, so they're our first five.
Speaker 2 (10:58):
I have one more for government support.
Speaker 1 (11:01):
Oh really yes? Oh okay, go for it.
Speaker 2 (11:04):
So this is the Shared Equity scheme.
Speaker 1 (11:06):
Oh yes, yes, this is an interesting one state based.
Speaker 2 (11:10):
So this is where the government contributes up to twenty
five percent towards the cost of your property. So it
means you're taking out up to you know, twenty five
percent smaller mortgage. There are very strict rules, like it
cannot be rented out you've got to live in it.
The downside is that you're carrying all those ongoing costs.
So the government are kind of free loading off those
(11:34):
ongoing expenses because they still get to benefit in any
gain of the property by up to twenty five percent.
But yet you're paying for all of it and just
even just even actually adding value or doing any sort
of work to that property. You're thinking about just you know,
strato insurance, water, electricity, wear and tear. You're wearing all
of those costs while they benefit from this. So it's
(11:56):
definitely an option that I think could help a lot
of people, depending on their goals.
Speaker 1 (12:01):
Okay, and so the shared equity scheme that does vary
from state to state, there might not be equivalents in
every state, correct, Okay, So really this is one of
those things where governments of all varieties have done something
that they have got kind of different versions of similar schemes,
and you really need this is where this is where
(12:22):
a mortgage broker can help you. Right that you can
go along as a first home buy a tool mortgage
broker and say hey, can you help me understand what
I am eligible for?
Speaker 2 (12:32):
Yes, And you need someone who's actually specialized in this
area because not all mortgage brokers know how to do
this correctly, and it is speaking to mortgage brokers about
this particular process. With these various different government options there
is it is a little bit fitly.
Speaker 1 (12:47):
Okay, all right, so they're the first six. They are
all government based. Can I have schemes?
Speaker 2 (12:55):
Just put my two cents worth in before we take
a quick break.
Speaker 1 (12:58):
Of course, I have never ever stopped you from sharing
an opinion on this podcast.
Speaker 2 (13:04):
All right, So government schemes absolutely, you can give you
a massive leg up. And for some people there are
really the only way they're going to be able to
get into the property market. And I think this is
something we should all be really grateful for and hopefully,
you know what, we appreciate, appreciate, so hopefully they're only
geting to get better here. But at the end of
the day, they're never substitutes for the hard work, the discipline,
(13:29):
the patients, and the serious self control and responsibility that
comes with budgeting. So that you can benefit from this.
This is one of many great stepping stones in your
financial journey. And you know this allows you to buy
a home, but also allows you to build and grow
financial harmony in your life long term.
Speaker 1 (13:47):
Yeah, okay, So it is the government doing what you
would expect of a government, which is providing support to
people who need it, but it doesn't replace the importance
of the hard work in the first place. Don't think
anyone kind of goes into it expecting these support schemes
to do all of the heavy lifting for them. That
really you're just doing it knowing that, Hey, I'm doing
(14:10):
everything I can to save a deposit. I know that
I can serve as a mortgage. I just need some
help to kind of hit that minimum.
Speaker 2 (14:16):
And then pay that mortgage off.
Speaker 1 (14:18):
Yeah, indeed. Okay, so we have got our first six
on the list. We are sixty percent of the way
through it. We will take a quick break and get
the final four because you've got something that aren't related
at all to government. These are other ideas altogether, right, correct,
A very exciting We'll be back in a second cana.
(14:40):
We are talking about ideas ten ideas to help get
on the property ladder. So far, there's been a lot
of government support and it was actually really useful to
hear you go through those because you hear a lot
of those the terminology thrown around to actually understand kind
of how they all work together or which ones you
might be eligible for, is really really useful. Can you
(15:03):
give us four more ways, four more ideas to help
get on the property ladder starting with number seven.
Speaker 2 (15:09):
Actually this is going to be a ten point ten list.
So the next tip number seven, I'm actually going to
combine two into one, So that is group renting and
co op housing. So living with friends that are also
saving up for a home. You know, you say, three friends,
we all want to buy our own homes. Cost of
living is really challenging find a place together. You're all motivated,
(15:34):
you can keep each other accountable, you're all on the
same similar budgets, and you can also support each other
for when you know there are setbacks and challenges that
come through. So that's a way of, you know, I guess,
being in alignment with each other and you know, you've
got three brains instead of one just focusing on one
goal and you can all sort of get through there together.
Speaker 1 (15:53):
I suppose that would be beneficial if you are trying
to live a very low cost lifestyle, where if you
are with two other people that are doing exactly the
same thing, you certainly don't have that kind of haves
and have not division within your household. Then because you're
all in the same boat, you're all working towards the
same goal. You just hope that you don't all end
up competing for the same same place at auction.
Speaker 2 (16:16):
I hadn't thought about that, but look, what I'm trying
to say is like energy is contagious. So if you
go and surround yourself with people who are focused and
driven and inspired, is probably going to rub off on you. Okay,
just like my financial advice drops off on you.
Speaker 1 (16:32):
It does. It rubs off very very slowly. It's like
a glacier like wax on. So that is number seven
group renting, co op housing, co op housing.
Speaker 2 (16:44):
This is we're still in number seven.
Speaker 1 (16:46):
Don't don't right rush me, trying to wrap you up.
Speaker 2 (16:50):
So there was an interesting article that came out, i think,
on the ab C the other weekend talking about this
sort of taking off and this could potentially be a
solution to obviously the housing short So cop is where
a group of people together get a block of land
and they put lots of small homes on the one
particular block, and your rent is capped and it's but
(17:11):
it's capped against your income can't be more than I
think twenty five percent of your income. Now, this obviously
allows people to actually start saving as well, but they're
all because it's a cop you're all responsible for taking
care of the wear and tear of the property.
Speaker 1 (17:28):
You look very skeptical. Yes, yes, ah, this just feels
fraught with problems. Number one, this is huge in Europe, okay,
but we have got very very strict laws in Australia
about kind of the properties, what you can do with
a particular property, and having multiple small dwellings on a
place feels like you would need counsel approval for multiple
(17:51):
developments on there. Trying to cap rents to be what
did you say.
Speaker 2 (18:00):
Of twenty five percent of your income?
Speaker 1 (18:02):
Okay, it feels as though it's actually something that you
wouldn't be able to do with your friends. You would
actually need a company that is running this to come
in and set it up. They would deal with local
government or state government in terms of the approvals for
this project, and then you could just come in and
that would require companies with a social.
Speaker 2 (18:21):
Conscience, Yes, absolutely.
Speaker 1 (18:23):
Which does exist. So I didn't mean to sound kind
of skeptical about that. Because there are a lot of
companies that are doing a lot of good work in
kind of social housing, low cost housing and trying to
help people to get into the market. But it does
feel like this is one of those ones that actually
needs bigger support because we do have a lot of
rules around what you can and can't do with property
in Australia exactly.
Speaker 2 (18:42):
But it's definitely an idea and for young families, you know,
this could be something that helps create that stability without
having to necessarily go and buy.
Speaker 1 (18:52):
For my too negative. Sometimes I was.
Speaker 2 (18:54):
Quite taken aback. I thought it would have pricked up
with curiosity.
Speaker 1 (18:59):
I think my big problem would be just living with
other people.
Speaker 2 (19:02):
Oh yeah, you could not do it.
Speaker 1 (19:04):
No, no, I'm not really a people person.
Speaker 2 (19:06):
No you're not. Thanks, Okay, no, okay.
Speaker 1 (19:12):
Fine, let's move on to number wow, number eight. What's
on the list?
Speaker 2 (19:17):
Okay, this again, I've combined three into one. But it's
a combination of house sitting, dog sitting, being a boarding master,
or o pairing. So we've had tom My Partner on
the show before and he shared that he was actually
a boarding master for a local school in Sydney and
he lived there. I think for a year or two.
(19:39):
His rent was provided and his food was covered and
he had minimal outgoings and he was able to save
up his deposit for his first home. We have an
pair living with us at the moment, and you know,
she's actually working as well. She's a pe teacher. But
it works really well for her because she doesn't have
to worry about having to pay rent and you know,
pay for expensive food, and she can actually save up
(20:02):
money whilst living with us, but also is helping us
out as well with three young children and the madness
of our houses. I also met another couple, and this
was a while ago, but I met them at the
dog park and they are professional dog and house sitters
and they're a couple so that if they get booked
for two different houses, they can just you know, separate
for the week or the month, whatever it may be.
(20:23):
And they work remotely from the houses that they sit in,
so the animals are taking care of the gardens, are
taking care of the houses safe and secure. They're actually
getting paid as well, but they have minimal outgoings.
Speaker 1 (20:35):
You would need to be very well organized for that,
because if you've got a week here and a week there,
like what are you doing in the three days in between?
For instance? Do you need a home base that you
can kind of keep coming back to and are you
paying rent on that when you're not there?
Speaker 2 (20:51):
So, God, I'm doing it, you are, okay? So they
put all their stuff into storage, okay, and when they're
stuck in between, they just use an airbnb if they're
in between properties. But they said it really happens there.
They're in such high demand because people know that their
pets have been taken care of us are away. And
of course stop boarding is really expensive, so sometimes it
can actually be cheaper.
Speaker 1 (21:12):
Okay, all right, Well they're good ideas that give you
somewhere to live while you're saving money. We can kind
of group them together under that category at number nine.
Have we've got two more to go? Numbers nine and ten?
Speaker 2 (21:22):
Nine and ten. Yes.
Speaker 1 (21:24):
So I will promise that I will not be negative
about anything that you say.
Speaker 2 (21:29):
Now you're going to be really negative about number nine.
Speaker 1 (21:32):
But I've just promised.
Speaker 2 (21:34):
God, I just set myself up with failure, all right,
returning to live with parents or other family members whilst
you save aggressively.
Speaker 1 (21:44):
Why would I be negative about that? See, you don't
know me at all, do you. I think, like I'm
already thinking ahead to when kind of my kids have
left home. I would gladly welcome them back. They can
stay and live for a couple of years. I'm at
that point where I'm very clean and I never never
want to let them go. But no, that does make sense.
(22:07):
And if you are fortunate enough you go to be
to have that relationship, to have the relationship, to have
family that live in an area that you're able to
get to, and it's it's kind of compatible with your work,
then why wouldn't you, like, why wouldn't you make the
most of that? And also it might be a pretty
kind of precious time exactly.
Speaker 2 (22:26):
And I have four really close friends who did this,
and two of which were you know, in relationships, married
and with kids. And it was great and they had
an extra set of hands to help up with bathtime
and dinner time. It was a really beautiful bonding moment.
And you know, it allowed them to obviously focus on
saving up as much as possible, and they're now they
(22:49):
are now homeowners, and you know, it's not forever, it's
just a stepping stone, but it is definitely something that's worthwhile.
Considering and if it's not necessarily your parents, perhaps it's
an aunt or uncle or a good parent or you know,
someone else in that family network.
Speaker 1 (23:03):
Okay, I like that one. No negativity here, Cana number ten.
Speaker 2 (23:09):
So this is the I won't saying this is it political,
but it's considered working overseas? Ah, yes, so depending on
you know where you move to and you know what
can be included as part of your contract. You know,
some people go agree to go and work overseas, especially
when their accommodation is paid for, and some organizations will
(23:29):
even pay for children's education as well as you know
transportation costs, flights, and if you're moving to another country
with a different tax system, you know, like Singapore or
Hong Kong, it actually can be a huge opportunity to
save up a substantial deposit. And I know people who've
(23:50):
done this and they're not only have they bought a
place that actually paid the place off.
Speaker 1 (23:54):
Oh wow, yeah that is amazing.
Speaker 2 (23:58):
Yeah, it's life changing, and it's now meant that they're
freed up to be actually focused on investing, not just
chasing the tail with a mortgage your payment.
Speaker 1 (24:06):
Okay, all right, that is ten.
Speaker 2 (24:09):
It's actually technically fifteen if you really want to go
and add up all the individual ones. Oh, what's that saying?
Under promise over deliver you.
Speaker 1 (24:16):
I have certainly over delivered today. So that is ten
slash fifteen somewhere in that there's an abundance of ideas.
We can just say that, right. So you had the
first home guarantee, the first Home super Saver scheme, stamp
duty concessions, Family home guarantee, first home owner grant, the
shared equity scheme, and then into the non government ones,
(24:36):
your group renting and co op housing and your house sitting,
dog sitting, various other kind of ones where you are
looking here pairing being a house master or a boarding master,
living with parents, living with family, or potentially working overseas
and just investigating those options. So there are really these
are kind of grouped into two. You've got your government
(24:58):
support and then you've got your ways to reduce your
living costs while you are saving for that saving for
that deposit, because that is the hard part here, trying
to get that deposit together to get into the market,
because it just keeps on.
Speaker 2 (25:11):
Climbing, exactly. I just never feel like you get there.
And this gives you a bit of a respite to
kind of catch up again.
Speaker 1 (25:17):
Yeah, absolutely, Okay, how do we find you if we
want more information?
Speaker 2 (25:21):
The best place to contact me is through Sugar Mama
on Instagram or Canna Campbell Official.
Speaker 1 (25:26):
And you can hear me every day with Sean Aylmer
on Fear and Greed daily business news for people who
make their own decisions. Thank you for listening to how
do they afford that? Remember to follow on the podcast.
That is absolutely crucial, And the very best thing that
you can do to help spread the word is to
tell somebody else about this episode. Send them the link
if you think they might be interested in hearing some
of these ideas. Thank you very much for your company.
(25:48):
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