October 2, 2023 • 40 mins
SURPRISE! Today V launches ANOTHER book today, 'Property with She's On The Money', and we're sharing a chapter from the audiobook version! Whether you're trying to crack the property market for the first time, hunting for your dream home, or looking for an investment property, the book is packed with information to get you to your goal!
Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
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 (00:00):
Hello, my name's Santasha Nabananga Bamblet. I'm a proud or
the Order Kernie Whoalbury and a waddery woman. And before
we get started on She's on the Money podcast, I
would like to acknowledge the traditional custodians of the land
of which this podcast is recorded on a wondery country,
acknowledging the elders, the ancestors and the next generation coming
(00:22):
through as this podcast is about connecting, empowering, knowledge sharing
and the storytelling of you to make a difference for
today and lasting impact for tomorrow.
Speaker 2 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 2 (00:57):
Hello and welcome to Property We sh on the Money,
the ultimate first home buyer's guide from the number one
finance creator in the country, me Victoria Devine, which I'm
so excited about.
Speaker 4 (01:09):
Guys.
Speaker 2 (01:10):
This is a special little bonus edition of She's On
the Money, where I thought I would share the very
first chapter of my very new book Property with She's
on the Money with you. I have written Property with
She's on the Money, just for you because I want
to see you smash your property goals. And I've created
this informative guide to help you. Whether you're getting your
foot on the ladder for the very first time, or
(01:30):
you're hunting for your dream home, or maybe you're planning
for your third investment property. Even with all the challenges
that are involved, guys, crazy interest rates, crazy high house prizes,
I'm looking at you, but so many of us we're
still planning on purchasing property. That's why the Property Playbook
has been so popular over the last twelve months. Whether
it's the security and the financial perks of owning your
(01:51):
own home or the benefits of having an investment property.
I guess the appeal and the rewards are a plenty,
my friends, but buying property can also be one of
the biggest decisions you are ever going to make, and
we want to make it right right. So I have
written Property with She's on the Money to equip you
for the whole process, my friend, from establishing your property
values and truly understanding why you want to buy property
(02:14):
to saving for the all important deposit. We're going to
talk all things mortgages, what to buy and when, how
to make every single stage of this process as smooth
as possible, right through to renovating and selling. I have
packed this book with practical advice, hopefully innovative ideas, and
real life stories from members of el She's on the
Money community who have already achieved the.
Speaker 4 (02:36):
Goal of purchasing their first home.
Speaker 2 (02:39):
With this game changing guide, I hope that property is
no longer confusing, overwhelming, or out of reach. It's going
to be clear, inspiring, and totally within your power to achieve. So, guys,
here is the first chapter of property with She's on
the Money Hopefully get your Property Journey rolling. Chapter one.
(03:00):
So you want to buy property, So you like the
idea of owning property, or you did before you started
looking at your finances and listening to the daily news
reports about interest rate increases and the rising cost of
living and how millennials will never be able to afford
a home, and since the world is going to hell
in a handbasket anyway, why bother. The truth is that, yes,
(03:22):
all the rising rates and costs do creep in inch
by painful inch, and at times of high stress, they
can really start to buy it. So even if you
had once thought it possible to dream about owning your
own home, now you might not really be so sure.
But you don't need to give up on your property
aspirations just because it seems too hard. The first step
(03:44):
that I always suggest on your financial journey is to
analyze your personal money story. The conscious and subconscious beliefs
we carry around wealth which direct our attitudes and our
behaviors towards money, in this case property. If you're interested
in taking a deeper dive into your personal money story,
you can find more in chapter one of my first book,
(04:05):
She's on the Money. But if you're keen to find
out how it plays out in terms of property, I
suggest you stay right here. Very shortly, we'll be working
through some activities to get you thinking about it in
detail key terms. Before we get into it, I want
to assure you that this book has been created with
the idea of simplifying the property buying process, not making
(04:27):
it harder. But I'm not going to lie. As part
of the finance world, property is an acronym heavy landscape.
Learning this language, as with any language French Mandarin beautician,
may be confusing at first, but trust me, the more
you hear a word and see it used, the more
sense it will make over time. You may even find
yourself throwing terms like LMI and P and I around
(04:50):
with loose abandon chapter six. If you want to jump
ahead as we go along, I will do my best
to explain things, which include popping key terms near the
top of every t to give you a heads up,
and then going into more detail on these as we progress.
I'll also include a quick explainer in the moment. But
if ever you find yourself being slammed with gobbledygook, there's
(05:11):
also a handy glossary at the back of the book
where all the terminology is listed. Key terms comparisonitis, comparing
yourself with others, and finding yourself lacking or gloating, neither
of which is healthy. Investor owner someone who owns property
that they rent out for income, not to live in themselves.
(05:32):
Emergency fund a savings account holding enough money to support
you for three months housing, food bills if for any
reason you can't work and or something unexpected pops up.
Financial freedom having enough money to live securely so you
can choose how you spend your time. Fomo fear of
(05:53):
missing out. Gender pay gap the real difference between what
men and women are paid. Typically, women are paid less
for so many reasons, there's not enough room to cover
it all here. Great Australian dream. Historically, the great Australian
dream was to own a quarter acre block of land
with a house on it in which to raise two
(06:13):
point four children. More recently, it's come to mean owning
your own home whatever that looks like. Mortgage another word
for a home loan owner occupier, someone who lives in
the property they own. Passive income stream money coming in
from sources other than your own direct labor. This might
(06:34):
include things like dividends, interests, subscriptions, royalties, and rent STM.
She's on the money, my fabulous community of millennials striving
to create financial freedom. You're why? The real reason often subconscious,
sitting deep beneath all of the obvious superficial ones, as
to why you think and behave the way you do.
(06:58):
Your property money story. Okay, so are you ready to begin?
I'm excited and I hope you are too. First things first,
because you know I like to get a little deep,
and it's important you do the same, at least as
far as your relationship with money goes. This relationship is
one of your life's most important. It affects your lifestyle
(07:18):
and investment choices, including property ownership, and ultimately your future,
so understanding your attitudes and assumptions around money is essential.
Some hate the idea of having all their wealth tied
up in one concrete asset, while others love it. Some
investors get excited when interest rates rise an opportunity to
(07:38):
pick up bargains, while others faint at their mere mention.
And others don't see property as particularly meaningful in either direction.
Before I start getting too deep into theory, let's get
you into the property mood with this fun activity. Cue
your favorite music, beverage of choice and comfy. Set up
and open up your PDF workbook BWAYO pen your property
(08:01):
money story. Thinking about your property money story, circle the
statement in your PDF that best fits your idea of
being a property owner. A. I have no idea how
I'm ever going to afford property, but I'd like to.
I suppose I imagine that somehow in the future I'll manifest
a better income, partner or life to enable it. B.
(08:23):
I've never considered that owning property is an option for me.
Speaker 1 (08:27):
CE.
Speaker 2 (08:28):
I move around a lot, and the idea of being
stuck in one place, let alone owning it is my
worst nightmare. D. I've been dreaming about owning my own
property since a young age, and I'm actively taking steps
to making this dream come true. Australian attitudes to property.
Whatever you just answered, it's true and valid, but I'd
(08:50):
like to get you thinking about where your ideas and
values have come from. In Australia when it comes to property.
We've been encouraged to believe that the great Australian dream
is owning our own home. Yet in many countries in Europe,
it's entirely normal and expected that a family will rent
and live in the same house for generations. Stable and
(09:10):
secure tenants have a say in how the place is
fixed and decorated, and never questioned paying rent for a lifetime.
Your money story is influenced by your education and upbringing.
You may have grown up surrounded by a clan of
powerful female property investors who modeled to you from a
young age that it's entirely possible, if not expected, to
(09:31):
own several properties in the adulthood. More likely, if you
look at Australia's housing statistics, you either grew up moving
from house to house as renting was your family's norm,
or lived in a standard family home that was paid
off using a good portion of your parents' wages each month.
Australian government statistics from nineteen eighty one to now show that,
(09:52):
although it has fluctuated, Australian home ownership is an even split,
almost thirty thirty thirty between those who are renting, be
own with a mortgage and c own outright. Nonetheless, the
dream of owning your own castle was the theme song
of our upbringing, the typical Oussie plan for securing a
decent life. A lot of this was built on the
(10:14):
idea of an Australia far removed from the society we
live in today, and which it can't go without acknowledging
exists on land stolen from its original custodians. There's a
lot to rectify on that front, which needs its own
whole book to explore. However, we can't discuss Australian property
without recognizing that all of this housing we're talking about
(10:37):
sits on unseated Aboriginal land. Please bear that in mind
and pay respect as you use the resources of this
great country to build up your own lives and help others.
You may be wondering whether the great Australian dream is
still a possibility, or even if it's a dream you
want for yourself at all at the end of the day,
whether you invest in property or shares, or simply your
(10:59):
own as education, creating financial security is about empowering you
to use money as a tool to transform your life
and the lives of others for the better. To start
you off, I'll get you to explore your personal ideas
and ambitions around property, which will help form the basis
of a strategy for fulfilling those dreams, whatever they entail.
(11:20):
Why property is important for women? Now. While we welcome any,
all and no gender in our She's on the Money community,
it's important that we talk about women when it comes
to finance and property. For those who don't identify as female,
please stay with me, as it's equally relevant to marginalized
and defranchised groups and as a society affects us all.
(11:42):
Investing in property can be particularly important for those looking
to secure their financial future and personal safety, as covered
in more depth in the following chapters. These reasons can
be more emotionally driven than finance led. However, it's important
to take both into account when making decisions that are
right for you. Housing affordability is a real issue for
(12:04):
women due to several factors, including the gender pay gap
on base salary thirteen point three percent in Australia, and
society's reliance on women to carry the burden of domestic
and caring duties, which forces them to work fewer or
more flexible hours. Traditionally, women dominated industries tend to be
paid less than male dominated industries, and while things are changing,
(12:28):
often women are still paid less for doing the same
job as a man. This data was confirmed by the
Australian Bureau of Statistics the ABS in early twenty twenty three,
which found that women earn on average eighty seven cents
for every dollar earned by a man, or two hundred
and fifty three dollars fifty less per week. All of
(12:50):
these factors limit a woman's ability to save for a
house deposit, while stretching the time it takes, making it
harder to achieve, especially when fighting against rising property prices.
It also affects her ability to service alone. On average,
it takes Australian women a year longer than their male
counterparts to save a deposit for a home. Even while
(13:12):
women are starting to earn decent salaries and in some
cases out earned, men were still often worse off when
it comes to money matters. Women are commonly kept out
of the conversation when it comes to discussing finances at home,
and no one is taught about it properly in school.
Quite simply, managing money isn't a subject that women are
(13:32):
encouraged to focus on. It's not that we're not smart enough,
it's simply often assumed we're not interested. Women are also
at higher risk of homelessness due to their increased vulnerability
to domestic violence. Financial independence gives you agency over your
life decisions and future. Being dependent on others for your
(13:53):
financial welfare with another person, organization, or the government often
comes with directives on how to behave in line with
the donors principles rather than yours. Let's turn that around.
If you have dreams of owning property and no idea
how on earth you're going to get there, you're not alone.
If you've been trying to save for a house deposit
(14:15):
that just seems to be getting further and further out
of reach, you're not alone there either. By the time
we finish this book, the goal you have for your
homemade look a little different from the white picket fence
dream you were sold as a child, but it will
come with a knowledge and skills to turn it into
a reality. Why property is important for your future. Speaking
(14:38):
of futures, While retirement seems a long way off and
most of us dream of finishing work for good one day,
the harsh reality is that women often don't have enough
money to support themselves in retirement. While the government enforces
superannuation contributions during your employment, because women often take significant
periods of work due to pregnancy, childcare, and other caring
(15:01):
and domestic duties, their superranuation at retirement is on average
significantly less than males. Many Australians rely on selling the
family home come retirement and putting these funds towards their
post salary lifestyle. If you're able to pay down a
mortgage to increase your property equity how much you not
the bank owns over the period of your working life,
(15:24):
this has the potential to offer a nice buffer in retirement.
In addition, if you manage to pay off your home
by the time you retire, the majority of your accommodation
costs will be taken care of, greatly reducing your outgoings.
Your why first up before deciding on the how, what, when,
and where of your own personal property journey. It's important
(15:46):
to know what's driving your decision and the ultimate goals
you're striving for your why. When the chips are down
and you're eating two minute noodles for the fifth Friday
in a row so you can meet your increased mortgage repayments,
you're going to need a pretty sol reason as to
why you agreed to all of this in the first place.
Buying property is a long term relationship that's not easy
(16:07):
to jump out of in a hurry. That said, we
look at various ways to keep your current lifestyle or
close to it while paying down an asset at the
same time throughout the book Figuring Out Your Why. If
you come to my mortgage broking team at Zella Money,
the first thing they'll ask you is what kind of
property are you looking to buy? And I'm going to
(16:28):
let you in on a secret. They won't be satisfied
with the answer, oh, well, I just want to buy
a house. They'll keep prompting you what kind of house?
Who's going to live there you? Or is it an investment?
Where is it located? Are you ready now or making
a five year plan? Why is this also important to
you until you both have a really clear picture. Honestly, Victoria,
(16:48):
I haven't thought about it. Can you give me some ideas?
Everyone's why will be different. Where some are purely interested
in buying property to generate in income stream, others are
driven by the need to provide shit for themselves and
their family. Some might be doing it alone, while others
might be doing it in partnership. Some may want to
run a business from home, others are looking to create
(17:09):
a private sanctuary. The great thing is that all these
options are available to you. The tough thing is figuring
out which one works best for you. So let's lay
out a few ways to assess where you're at now
and where you'd like to be at eventually. Your why.
Getting to the heart of what's driving your desire to
buy property is a great place to start. There will
(17:31):
likely be several reasons, but there will usually be one
main belief or motivation driving your decision. It could be
the pool of having a place to cool your own
or maybe using property to create a passive income earnings
from something other than your own time and labor. For everyone,
your budget will have a big influence on any financial
decisions you make, and buying a house may well be
(17:53):
the biggest financial decision you ever make. Take some time
to reflect on this question, also written in your workbook,
Dig deep and be honest with your answer. Why is
buying property so important to you? The pros and cons
of investing in property. Whether you are financially ready or
just starting out, there is real pressure to buy property
(18:16):
in Australia. There's a lot to consider around property before
you can make the decision to purchase. And even if
you determine that buying property is definitely for you, you still
want to make sure to buy the right place at
the right time. If you're a dedicated She's on the
Money member, it's likely that you're driven by the goal
of financial freedom life supported by a passive income stream.
(18:39):
The question is is property the right way for you
to achieve this or are there other strategies that might
be better for you. In my second book, Investing with
She's on the Money, we look in detail at a
number of investment pathways that can help build up your wealth.
There is absolutely no expectation that property has to be
the vehicle for this, although it can be. Some like
(19:01):
Rich Dad, Poor Dad's Robert Kiyosaki suggests that owning your
own home is not an asset. However, this viewpoint is
challenged by many, especially in regards to Australian property. My
thoughts are that while property can be an epic asset,
your family home shouldn't be viewed as such. With all
financial purchases and lifestyles, comparisonitis is the devil, particularly because
(19:26):
it's so hard to really know everyone else's history or
circumstances beyond what you might see from the outside. You'll know,
either from your own experience or from listening to my podcast,
that comparisonitis can lead us down a path paved with
bad debt, so we certainly don't want to invite that
in at the scale of a mortgage. Before you agree
(19:48):
to any property purchase, I really encourage you to think
about what it is you're committing to and why. Run
the numbers several times and follow the book's activities to
test your saving and repayment threshold before you sign on
the dotted line. Remember, when it comes to figuring out
the best way to build your future wealth, you're truly
(20:08):
running your own race. Let's briefly consider some of the
pros and cons of investing in property. We'll look at
many of these in more detail later, but just to
get your brain juices flowing, here are some considerations unique
to property investing. Ten reasons why pros of investing in property.
One you meet the human need for shelter. Two it's
(20:32):
a place to call your own. Three you can use
it and enjoy it while you're paying it off, the
ultimate buy now, pay later. Four Compared to some investments,
it's reasonably straightforward to understand. Five. Medium property values historically
have grown over time. Six it's typically a stable investment
(20:53):
over the medium to long term. Seven it can generate
income and or reduce the costs of running a business.
Eight it offers the potential to reduce your tax with
negative gearing. Nine it can create access to funding when
used as a security rather than cash. Ten you can
(21:14):
have a direct impact on improving its value, unlike buying
shares in a company. Cons of investing in property. One
it can be really, really expensive. Two it may keep
you in debt for a long time. Three it's difficult
to predict interest rates, which can impact your standard of living.
(21:35):
Four you may not be able to afford the house
of your dreams, so find yourself paying off something you
don't really love unless we change your property mindset. More
on that to come. Five. It's hard to cash in quickly,
what investors call an illiquid asset, unlike cash, which is
liquid and immediately available.
Speaker 4 (21:56):
Six.
Speaker 2 (21:57):
Holding onto property costs money in ongoing maintenance fees, rates,
body corporate and perhaps in lost or below market rental income,
among other things. Seven. Property is not a set and
forget investment. It requires ongoing care and maintenance. Eight. Property
involves many moving parts and people, which can bring potential issues. Nine.
(22:20):
Capital growth is not guaranteed. Despite what people like to say,
the property market does not uniformly rise in every area
every seven years and ten. It could be risky if
you invest in areas slow to develop, or you are
trying to make fast money using a flip strategy during
times when the market drops. Your property beliefs, values, and goals,
(22:43):
let's look a little more closely at your personal property beliefs, skulls,
and values. You may find that working through the prompts
we're about to get to will get you to reconsider
your initial Why that's good. It means you really started
thinking more deeply about what property means. For you and
how it might fit into and impact your life. To
figure out what makes you tick and why you're thinking
(23:06):
about committing to the biggest expense of your lifetime, Let's
walk through a series of questions together. Either write your
notes in the space in your workbook, or if you're
a dedicated diarist, grab a notebook and a pen. If
you're like me, a shiny new one, especially for all
your property dreams, goals and strategies. Let's begin, what are
your main reasons for buying property? Seriously? Have you really
(23:30):
sat down and thought about all of this? I mean properly.
A lot of people we talk to at Zella and
She's on the Money think that they want to get
into property without ever having spent the time to consider.
Why is owning real estate really that big on your
list of priorities or is it just something you've been
conditioned to believe is important. As we've talked about, we
(23:53):
grew up being fed the great Australian dream. But take
a look around, friend, is that your dream? Does it
chime who you want to be? Australia has thankfully become
far more open and inclusive in recent years. People live
in all sorts of families and practice wildly different lifestyles.
The desire to follow the norm is losing its grip
(24:14):
if there's even a norm at all. So before you
decide to commit to a significant cash drop, be sure
you know why you're doing it. All reasons are equally valid,
So this is just about getting clear on your reason.
Why are you thinking of buying property for a place
to call your own, to live in, just for now,
(24:35):
to live in well into the future, as a wealth
creation strategy, as an investor, as your retirement plan for
its long term growth, Because you're sick of landlords and
want to say in the place, because you're terrified of
becoming homeless, because your parents told you it was a
good idea. Actually, come to think of it, no thanks,
(24:56):
or at least not right now. Whatever you're responsive is
write it down in your workbook. The financial commitment of
a property loan. If you are seriously thinking about investing
in property, do you understand what it means for your finances?
We have gone through several reasons why owning property may
be a particularly valuable investment for women, but that doesn't
(25:17):
necessarily apply to all women, and certainly not all people.
Taking on home ownership is a serious financial commitment. Not
only must you save up for a deposit, you must
first establish yourself as a positive loan risk for the
bank to take on. That could mean extra effort to
create an additional savings account, work to clear your existing
(25:38):
personal loans, reducing or eliminating your credit card debts, and
possibly taking on extra work or employment. Are you ready
to take on a property loan? Have you got it
in you right now? And even if you can do
it for a sprint, are you sure you can sustain
it for the long term? Remembering that a standard mortgage
(25:59):
repayment term is thirty years. What savings do you already
have and how much more might you need for a deposit?
How much can or are you willing to direct towards
paying a home loan for the next thirty years or so?
Are you comfortable with the restrictions this might have on
your lifestyle? In your workbook, list out some things you
(26:20):
might have to forfeit if you were paying down alone.
How does this make you feel the reality of managing
a long term loan now? I don't want to get
all doom and gloomy, but you have to consider how
you might be able to keep paying your mortgage if
the worst happened. We'll look more deeply at this in
chapter seven, so no need to get tiery, but it's
(26:40):
definitely worth thinking about. During COVID, the government introduced wage support,
banks offered moratoriums on repayments, and many landlords went over
and above to keep their tenants housed. But it won't
always be all in together when shit hits the fan.
If you already had a home loan and got so
severely injured, yess today that you couldn't work today? What then, Hopefully,
(27:03):
after listening to this book, you'll have got yourself some
reliable insurances and some SotM. Smart savers will already have
a decent emergency fund, which they will increase when they
become homeowners. But these plans don't magically appear, and neither
do the funds to support them. Make this conversation part
of your planning. Are you prepared to manage a long
(27:25):
term loan? Since nineteen ninety to now, mortgage interest rates
have ranged between two point one four and fifteen point
five percent. Could you manage this? If so, how what
plans would you put in place? What about if you
couldn't work for whatever reason. Can you afford insurance that
would cover you in this event? And or other support plans?
(27:48):
Who might be there for you? Where might you turn?
Is this a realistic plan for the short and long term?
Write down your responses in your workbook. The responsibility of
owning property. Owning a property might sound like a dream
come true. But even once you've saved that deposit, bought
the place, and furnished it with your snazzy but affordable knickknacks,
(28:10):
it's no time to kick back and lie like a
lady lizard drinking in the sun. Owning a property comes
not only as an ongoing financial cost, but a social
and emotional one too. If you bought your place to
live in, it's almost a guarantee that something many things
had to give. Maybe you now have a ninety minute
one way commute. Maybe you need to spend every second
(28:33):
Sunday mowing the lawns because the landlord doesn't cover it anymore.
Maybe you had to fall for two months of Sunday
brunches because your whole water system blew up the day
after you moved in. If you get bored with this
place or itchy for a new lifestyle, one year hiatus
in Hawaii, anyone changing things up becomes far more difficult
as a homeowner. As a renter, you simply give notice
(28:56):
and move on with your life. If the property is yours,
it's yours to deal with too. That's not to say
you can't rent it out or even sell it, but
both these are more hassled than giving two weeks notice.
Then there's being a landlord. If you're an investor owner,
you may not have sacrificed your walk to work proximity,
but if you have tenants, you may be required to
(29:17):
fix any issue they have with the house or appliances
quick smart. If the breakdown happens over a weekend and
is considered a health risk, Hello, emergency call out Bee.
Whatever compromises you talked yourself into when you bought the place,
triple them. More things go wrong than you will have
ever thought of. Soon enough, you'll have listened to every
(29:38):
single one of my podcasts, and that commute won't seem
so shiny anymore. That lovely lorn that you imagined lying
on reading She's on the money Book after She's on
the money Book has now become your worst nightmare. Those
dream tenants who promise to lovingly tend to your place.
They're gremlins. The trouble with property is it's a long
term commitment. You'll probably have times when you get more
(29:59):
sick of it then it could ever get of you worse. Still,
unlike an annoying ex boyfriend or a bad haircut, you
can't just ignore your house and its problems when you're
over it. No matter what. Those pesky bills will keep
showing up, but the bank will keep drawing down its fees.
When you sign up for a home loan, you're committing
to possibly the longest relationship you'll ever have. There are
(30:21):
plenty of lifestyle limitations that come with owning property beyond
just the mortgage repayments. That's not to say it won't
be worth it overall, but now's the time to have
a good hard think about whether you're ready to give
up your current lifestyle to support your dream and future you.
Are you ready to be a responsible property owner? Is
(30:41):
making a home something that interests you? To what degree
are fluffy cushions enough for Do you dream of floor
plans and paint colors and exactly which oven you'd like
in your kitchen? What about if these break down, if
the windows start leaking, or the gas heating stops working,
or your front door won't shut properly. Have you got
the time, inclination, and budget to deal directly with builders
(31:03):
and handymen to keep the place upright and secure? Are
you ready to settle into living in a place for
possibly the next thirty years or at least seven To
make it worthwhile, write down your responses in your workbook
the responsibilities of being a landlord. There's a lot of
chat around about the terrors of landlords, so let's tame
(31:25):
that beast, shall we. If you're thinking about owning property,
chances are you may one day become a landlord yourself,
either by choice or necessity, if you've been a renting yourself,
or even if you've just watched the news lately. It's
clear that while some landlords are greedy monsters, the majority
are regular folk who got lucky and or worked hard
(31:47):
to get a foot into property investment. These people are
now doing their best to look after their own finances
and the people who live in the home they provide.
Everyone has a choice in this world to be a
dick or to not be a di So you can
be a landlord, just don't be a landlord dick. The
best way to do that is to know and fulfill
your responsibilities under the law, and ideally go beyond those.
(32:10):
To ensure your tenants are comfortable. You don't have to
buy them super large fluffy bean bags or send a
weekly grosser's box, but a nice welcome note and the
invitation to get in touch should they need anything goes
a long way to making them feel human. If you
decide to employ a property manager, make sure to choose
an ethical one who will do right by you and
(32:31):
your tenants. Also, and most importantly, make sure you have
allocated enough funds to looking after the joint. As a landlord,
you may have to fix things straight away, even if
it's something you might live with if it we your
own home, so make sure you have the cash to
service your property. You might need a redraw facility on
your property loan, or consider getting landlord's insurance to help
(32:54):
cover unexpected costs. Being financially responsible as an investor owner
will take the emotion out of it and help ensure
that both you and your tenants are looked after in
the long run. Are you ready to be a responsible
landlord if you're a landlord, you must intend to issue straightaway.
Do you have the time, inclination, and budget to make repairs?
(33:17):
If not, are you willing to pay and work with
a managing agent to do so. Does your budget stretch
to covering rental vacancies, tenants and or building damages, special
levies and other unexpected costs. Are you willing to sacrifice
your own lifestyle if needed to ensure your tenants and
property are looked after? Write down your responses in your workbook.
(33:41):
The ethical implications of owning property further to the landlord dilemma.
People are becoming increasingly aware of the social impact of
their decisions. Investors call this value investing, and in recognition
of this, many trading platforms allow you the option to
invest only in funds companies that align with your personal values.
(34:03):
A similar thought process can apply in property. The choice
you make in materials to renovate or fix your home,
what kind of power you use for your heating and cooking,
and even what kind of plants you grow all affect
the environment. The impact of one person owning several houses
when it's well acknowledged that thousands of people around Australia
(34:23):
sleep rough every night, and that our properties sit on
unseated Aboriginal land can give some people the ick. There
are many ways, large and small, to help rebalance such disparity.
You might consider investing in social housing or land reclamation projects,
or contributing some of your income to supporting marginalized groups.
(34:43):
For example, Pay the Rent is a grassroots Aboriginal initiative
encouraging Australians to pay a small percentage of the income
as rent for living on unseated lands. There are several
organizations that provide shelter to vulnerable women, who welcome donations
both in time and money. As with any philanthropy, you
(35:03):
can give inkind Support, fundraise, or myriad other initiatives that
help to counterbalance the impact you have on the planet.
It's up to you how creative you want to get.
I'd love to hear your ideas, so be sure to
let us know by commenting on our install or via
thisshes on the money website. Together we can all make
the difference. What are your ethics around property ownership? As
(35:28):
with any investment or lifestyle, there are ethical implications to
your decision and ways to mitigate against the negative impacts.
Have you considered investing in schemes or activities that can
work to build housing affordability. Can you list a few options?
How about ensuring your building is environmentally sustainable? What are
some things you could implement to ensure this? Write down
(35:51):
your responses in your workbook Your Real Why. It's easy
to see why and how we inherit beliefs from society
and others around us. If we're not actively reflecting on
our own personal reasons and personal beliefs around life, money,
and what's important to us, we can be swayed by
others stories, views and fears, many of which have been
(36:14):
well developed decades ago against very different circumstances. Not to
mention that you, my pretty butterfly, are the only you
on this planet and so what you think, feel, and
ultimately do should be individual to you. Your real Why
buying a house is important to you. Working through this chapter,
you have reviewed your property, money beliefs and thought more
(36:36):
about which of these are true to your story and
those you may have inherited from others. Reflecting on these,
write down in your workbook what is now true for you?
Property story from Ruby thirty two from New Zealand and
New South Wales. My partner and I are from New Zealand.
After years of saving for a house, we became demoralized
(36:59):
by increasing prices and the hundreds of people at open
homes where we were looking to buy in Wellington. After
the COVID borders opened, we decided to give up on
our New Zealand property dream, moved to Sydney and chuck
our money into shares, bonds and a couple of startup businesses.
We are thankful to not have the one million dollars
of debt and rising interest costs to think about if
(37:21):
we had bought a house. We now have no desire
to buy property and I can't see that changing in
the next five to ten years. Mccanna thirty from Victoria.
I moved to Australia when I was nineteen and since
then have dreamt of owning my own house instead of
paying someone else's mortgage. We started saving for a loan
(37:42):
deposit in twenty fifteen when I was earning just forty
three thousand dollars a year and my husband was earning
twenty five dollars an hour as a casual. As we
didn't have much knowledge of the property market, our mortgage
broker was invaluable guiding us from the start of the
process until the end. Now you're a family friend. We
secured a mortgage on incomes of fifty four thousand dollars
(38:04):
and fifty thousand dollars respectively. We've been in our house
for a bit over four years and now have enough
equity to buy an investment house. The market is scarier
than it looked when we purchased the first time, but
my knowledge keeps growing and I know I'll never look back.
Take note, buying property is a big decision and a
(38:25):
serious commitment, possibly the longest relationship you'll have in your life,
so not one to take on lightly. Property comes with
pros and cons and is not the only pathway towards
building future wealth. Dig deep to identify the true reason
you want to buy property if you still do, and
use that to guide you from here. Guys, that was.
Speaker 4 (38:49):
The first chapter of Property with Shees on the money, and.
Speaker 2 (38:52):
I really hope that you're inspired to take action when
it comes to getting on the property ladder, if that's
what you want to get up to, and you smash
all of your property goals, whether you're getting your first
foot on the ladder, or you're hunting for your dream home,
or you're planning your fourth investment property. I don't mind
what you're doing. I'm just so grateful to be part
of the journey. If you loved this, you can purchase
(39:13):
property it with She's on the Money from all Good
book retailers, or you can listen to the rest of
this audio book by buying it on any good audiobook retailer.
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
(39:34):
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial.
Speaker 4 (39:46):
Advice tailored towards your needs.
Speaker 2 (39:48):
Victoria Divine and She's on the Money are authorized representatives
of Money Sherper Pty Ltd ABN three two one six
four nine two seven seven zero eight AFSL four five
one two eight nine
Hello, my name's Santasha Nabananga Bamblet. I'm a proud or
the Order Kernie Whoalbury and a waddery woman. And before
we get started on She's on the Money podcast, I
would like to acknowledge the traditional custodians of the land
of which this podcast is recorded on a wondery country,
acknowledging the elders, the ancestors and the next generation coming
(00:22):
through as this podcast is about connecting, empowering, knowledge sharing
and the storytelling of you to make a difference for
today and lasting impact for tomorrow.
Speaker 2 (00:33):
Let's get into it.
Speaker 3 (00:34):
She's on the Money, She's on the Money.
Speaker 2 (00:57):
Hello and welcome to Property We sh on the Money,
the ultimate first home buyer's guide from the number one
finance creator in the country, me Victoria Devine, which I'm
so excited about.
Speaker 4 (01:09):
Guys.
Speaker 2 (01:10):
This is a special little bonus edition of She's On
the Money, where I thought I would share the very
first chapter of my very new book Property with She's
on the Money with you. I have written Property with
She's on the Money, just for you because I want
to see you smash your property goals. And I've created
this informative guide to help you. Whether you're getting your
foot on the ladder for the very first time, or
(01:30):
you're hunting for your dream home, or maybe you're planning
for your third investment property. Even with all the challenges
that are involved, guys, crazy interest rates, crazy high house prizes,
I'm looking at you, but so many of us we're
still planning on purchasing property. That's why the Property Playbook
has been so popular over the last twelve months. Whether
it's the security and the financial perks of owning your
(01:51):
own home or the benefits of having an investment property.
I guess the appeal and the rewards are a plenty,
my friends, but buying property can also be one of
the biggest decisions you are ever going to make, and
we want to make it right right. So I have
written Property with She's on the Money to equip you
for the whole process, my friend, from establishing your property
values and truly understanding why you want to buy property
(02:14):
to saving for the all important deposit. We're going to
talk all things mortgages, what to buy and when, how
to make every single stage of this process as smooth
as possible, right through to renovating and selling. I have
packed this book with practical advice, hopefully innovative ideas, and
real life stories from members of el She's on the
Money community who have already achieved the.
Speaker 4 (02:36):
Goal of purchasing their first home.
Speaker 2 (02:39):
With this game changing guide, I hope that property is
no longer confusing, overwhelming, or out of reach. It's going
to be clear, inspiring, and totally within your power to achieve. So, guys,
here is the first chapter of property with She's on
the Money Hopefully get your Property Journey rolling. Chapter one.
(03:00):
So you want to buy property, So you like the
idea of owning property, or you did before you started
looking at your finances and listening to the daily news
reports about interest rate increases and the rising cost of
living and how millennials will never be able to afford
a home, and since the world is going to hell
in a handbasket anyway, why bother. The truth is that, yes,
(03:22):
all the rising rates and costs do creep in inch
by painful inch, and at times of high stress, they
can really start to buy it. So even if you
had once thought it possible to dream about owning your
own home, now you might not really be so sure.
But you don't need to give up on your property
aspirations just because it seems too hard. The first step
(03:44):
that I always suggest on your financial journey is to
analyze your personal money story. The conscious and subconscious beliefs
we carry around wealth which direct our attitudes and our
behaviors towards money, in this case property. If you're interested
in taking a deeper dive into your personal money story,
you can find more in chapter one of my first book,
(04:05):
She's on the Money. But if you're keen to find
out how it plays out in terms of property, I
suggest you stay right here. Very shortly, we'll be working
through some activities to get you thinking about it in
detail key terms. Before we get into it, I want
to assure you that this book has been created with
the idea of simplifying the property buying process, not making
(04:27):
it harder. But I'm not going to lie. As part
of the finance world, property is an acronym heavy landscape.
Learning this language, as with any language French Mandarin beautician,
may be confusing at first, but trust me, the more
you hear a word and see it used, the more
sense it will make over time. You may even find
yourself throwing terms like LMI and P and I around
(04:50):
with loose abandon chapter six. If you want to jump
ahead as we go along, I will do my best
to explain things, which include popping key terms near the
top of every t to give you a heads up,
and then going into more detail on these as we progress.
I'll also include a quick explainer in the moment. But
if ever you find yourself being slammed with gobbledygook, there's
(05:11):
also a handy glossary at the back of the book
where all the terminology is listed. Key terms comparisonitis, comparing
yourself with others, and finding yourself lacking or gloating, neither
of which is healthy. Investor owner someone who owns property
that they rent out for income, not to live in themselves.
(05:32):
Emergency fund a savings account holding enough money to support
you for three months housing, food bills if for any
reason you can't work and or something unexpected pops up.
Financial freedom having enough money to live securely so you
can choose how you spend your time. Fomo fear of
(05:53):
missing out. Gender pay gap the real difference between what
men and women are paid. Typically, women are paid less
for so many reasons, there's not enough room to cover
it all here. Great Australian dream. Historically, the great Australian
dream was to own a quarter acre block of land
with a house on it in which to raise two
(06:13):
point four children. More recently, it's come to mean owning
your own home whatever that looks like. Mortgage another word
for a home loan owner occupier, someone who lives in
the property they own. Passive income stream money coming in
from sources other than your own direct labor. This might
(06:34):
include things like dividends, interests, subscriptions, royalties, and rent STM.
She's on the money, my fabulous community of millennials striving
to create financial freedom. You're why? The real reason often subconscious,
sitting deep beneath all of the obvious superficial ones, as
to why you think and behave the way you do.
(06:58):
Your property money story. Okay, so are you ready to begin?
I'm excited and I hope you are too. First things first,
because you know I like to get a little deep,
and it's important you do the same, at least as
far as your relationship with money goes. This relationship is
one of your life's most important. It affects your lifestyle
(07:18):
and investment choices, including property ownership, and ultimately your future,
so understanding your attitudes and assumptions around money is essential.
Some hate the idea of having all their wealth tied
up in one concrete asset, while others love it. Some
investors get excited when interest rates rise an opportunity to
(07:38):
pick up bargains, while others faint at their mere mention.
And others don't see property as particularly meaningful in either direction.
Before I start getting too deep into theory, let's get
you into the property mood with this fun activity. Cue
your favorite music, beverage of choice and comfy. Set up
and open up your PDF workbook BWAYO pen your property
(08:01):
money story. Thinking about your property money story, circle the
statement in your PDF that best fits your idea of
being a property owner. A. I have no idea how
I'm ever going to afford property, but I'd like to.
I suppose I imagine that somehow in the future I'll manifest
a better income, partner or life to enable it. B.
(08:23):
I've never considered that owning property is an option for me.
Speaker 1 (08:27):
CE.
Speaker 2 (08:28):
I move around a lot, and the idea of being
stuck in one place, let alone owning it is my
worst nightmare. D. I've been dreaming about owning my own
property since a young age, and I'm actively taking steps
to making this dream come true. Australian attitudes to property.
Whatever you just answered, it's true and valid, but I'd
(08:50):
like to get you thinking about where your ideas and
values have come from. In Australia when it comes to property.
We've been encouraged to believe that the great Australian dream
is owning our own home. Yet in many countries in Europe,
it's entirely normal and expected that a family will rent
and live in the same house for generations. Stable and
(09:10):
secure tenants have a say in how the place is
fixed and decorated, and never questioned paying rent for a lifetime.
Your money story is influenced by your education and upbringing.
You may have grown up surrounded by a clan of
powerful female property investors who modeled to you from a
young age that it's entirely possible, if not expected, to
(09:31):
own several properties in the adulthood. More likely, if you
look at Australia's housing statistics, you either grew up moving
from house to house as renting was your family's norm,
or lived in a standard family home that was paid
off using a good portion of your parents' wages each month.
Australian government statistics from nineteen eighty one to now show that,
(09:52):
although it has fluctuated, Australian home ownership is an even split,
almost thirty thirty thirty between those who are renting, be
own with a mortgage and c own outright. Nonetheless, the
dream of owning your own castle was the theme song
of our upbringing, the typical Oussie plan for securing a
decent life. A lot of this was built on the
(10:14):
idea of an Australia far removed from the society we
live in today, and which it can't go without acknowledging
exists on land stolen from its original custodians. There's a
lot to rectify on that front, which needs its own
whole book to explore. However, we can't discuss Australian property
without recognizing that all of this housing we're talking about
(10:37):
sits on unseated Aboriginal land. Please bear that in mind
and pay respect as you use the resources of this
great country to build up your own lives and help others.
You may be wondering whether the great Australian dream is
still a possibility, or even if it's a dream you
want for yourself at all at the end of the day,
whether you invest in property or shares, or simply your
(10:59):
own as education, creating financial security is about empowering you
to use money as a tool to transform your life
and the lives of others for the better. To start
you off, I'll get you to explore your personal ideas
and ambitions around property, which will help form the basis
of a strategy for fulfilling those dreams, whatever they entail.
(11:20):
Why property is important for women? Now. While we welcome any,
all and no gender in our She's on the Money community,
it's important that we talk about women when it comes
to finance and property. For those who don't identify as female,
please stay with me, as it's equally relevant to marginalized
and defranchised groups and as a society affects us all.
(11:42):
Investing in property can be particularly important for those looking
to secure their financial future and personal safety, as covered
in more depth in the following chapters. These reasons can
be more emotionally driven than finance led. However, it's important
to take both into account when making decisions that are
right for you. Housing affordability is a real issue for
(12:04):
women due to several factors, including the gender pay gap
on base salary thirteen point three percent in Australia, and
society's reliance on women to carry the burden of domestic
and caring duties, which forces them to work fewer or
more flexible hours. Traditionally, women dominated industries tend to be
paid less than male dominated industries, and while things are changing,
(12:28):
often women are still paid less for doing the same
job as a man. This data was confirmed by the
Australian Bureau of Statistics the ABS in early twenty twenty three,
which found that women earn on average eighty seven cents
for every dollar earned by a man, or two hundred
and fifty three dollars fifty less per week. All of
(12:50):
these factors limit a woman's ability to save for a
house deposit, while stretching the time it takes, making it
harder to achieve, especially when fighting against rising property prices.
It also affects her ability to service alone. On average,
it takes Australian women a year longer than their male
counterparts to save a deposit for a home. Even while
(13:12):
women are starting to earn decent salaries and in some
cases out earned, men were still often worse off when
it comes to money matters. Women are commonly kept out
of the conversation when it comes to discussing finances at home,
and no one is taught about it properly in school.
Quite simply, managing money isn't a subject that women are
(13:32):
encouraged to focus on. It's not that we're not smart enough,
it's simply often assumed we're not interested. Women are also
at higher risk of homelessness due to their increased vulnerability
to domestic violence. Financial independence gives you agency over your
life decisions and future. Being dependent on others for your
(13:53):
financial welfare with another person, organization, or the government often
comes with directives on how to behave in line with
the donors principles rather than yours. Let's turn that around.
If you have dreams of owning property and no idea
how on earth you're going to get there, you're not alone.
If you've been trying to save for a house deposit
(14:15):
that just seems to be getting further and further out
of reach, you're not alone there either. By the time
we finish this book, the goal you have for your
homemade look a little different from the white picket fence
dream you were sold as a child, but it will
come with a knowledge and skills to turn it into
a reality. Why property is important for your future. Speaking
(14:38):
of futures, While retirement seems a long way off and
most of us dream of finishing work for good one day,
the harsh reality is that women often don't have enough
money to support themselves in retirement. While the government enforces
superannuation contributions during your employment, because women often take significant
periods of work due to pregnancy, childcare, and other caring
(15:01):
and domestic duties, their superranuation at retirement is on average
significantly less than males. Many Australians rely on selling the
family home come retirement and putting these funds towards their
post salary lifestyle. If you're able to pay down a
mortgage to increase your property equity how much you not
the bank owns over the period of your working life,
(15:24):
this has the potential to offer a nice buffer in retirement.
In addition, if you manage to pay off your home
by the time you retire, the majority of your accommodation
costs will be taken care of, greatly reducing your outgoings.
Your why first up before deciding on the how, what, when,
and where of your own personal property journey. It's important
(15:46):
to know what's driving your decision and the ultimate goals
you're striving for your why. When the chips are down
and you're eating two minute noodles for the fifth Friday
in a row so you can meet your increased mortgage repayments,
you're going to need a pretty sol reason as to
why you agreed to all of this in the first place.
Buying property is a long term relationship that's not easy
(16:07):
to jump out of in a hurry. That said, we
look at various ways to keep your current lifestyle or
close to it while paying down an asset at the
same time throughout the book Figuring Out Your Why. If
you come to my mortgage broking team at Zella Money,
the first thing they'll ask you is what kind of
property are you looking to buy? And I'm going to
(16:28):
let you in on a secret. They won't be satisfied
with the answer, oh, well, I just want to buy
a house. They'll keep prompting you what kind of house?
Who's going to live there you? Or is it an investment?
Where is it located? Are you ready now or making
a five year plan? Why is this also important to
you until you both have a really clear picture. Honestly, Victoria,
(16:48):
I haven't thought about it. Can you give me some ideas?
Everyone's why will be different. Where some are purely interested
in buying property to generate in income stream, others are
driven by the need to provide shit for themselves and
their family. Some might be doing it alone, while others
might be doing it in partnership. Some may want to
run a business from home, others are looking to create
(17:09):
a private sanctuary. The great thing is that all these
options are available to you. The tough thing is figuring
out which one works best for you. So let's lay
out a few ways to assess where you're at now
and where you'd like to be at eventually. Your why.
Getting to the heart of what's driving your desire to
buy property is a great place to start. There will
(17:31):
likely be several reasons, but there will usually be one
main belief or motivation driving your decision. It could be
the pool of having a place to cool your own
or maybe using property to create a passive income earnings
from something other than your own time and labor. For everyone,
your budget will have a big influence on any financial
decisions you make, and buying a house may well be
(17:53):
the biggest financial decision you ever make. Take some time
to reflect on this question, also written in your workbook,
Dig deep and be honest with your answer. Why is
buying property so important to you? The pros and cons
of investing in property. Whether you are financially ready or
just starting out, there is real pressure to buy property
(18:16):
in Australia. There's a lot to consider around property before
you can make the decision to purchase. And even if
you determine that buying property is definitely for you, you still
want to make sure to buy the right place at
the right time. If you're a dedicated She's on the
Money member, it's likely that you're driven by the goal
of financial freedom life supported by a passive income stream.
(18:39):
The question is is property the right way for you
to achieve this or are there other strategies that might
be better for you. In my second book, Investing with
She's on the Money, we look in detail at a
number of investment pathways that can help build up your wealth.
There is absolutely no expectation that property has to be
the vehicle for this, although it can be. Some like
(19:01):
Rich Dad, Poor Dad's Robert Kiyosaki suggests that owning your
own home is not an asset. However, this viewpoint is
challenged by many, especially in regards to Australian property. My
thoughts are that while property can be an epic asset,
your family home shouldn't be viewed as such. With all
financial purchases and lifestyles, comparisonitis is the devil, particularly because
(19:26):
it's so hard to really know everyone else's history or
circumstances beyond what you might see from the outside. You'll know,
either from your own experience or from listening to my podcast,
that comparisonitis can lead us down a path paved with
bad debt, so we certainly don't want to invite that
in at the scale of a mortgage. Before you agree
(19:48):
to any property purchase, I really encourage you to think
about what it is you're committing to and why. Run
the numbers several times and follow the book's activities to
test your saving and repayment threshold before you sign on
the dotted line. Remember, when it comes to figuring out
the best way to build your future wealth, you're truly
(20:08):
running your own race. Let's briefly consider some of the
pros and cons of investing in property. We'll look at
many of these in more detail later, but just to
get your brain juices flowing, here are some considerations unique
to property investing. Ten reasons why pros of investing in property.
One you meet the human need for shelter. Two it's
(20:32):
a place to call your own. Three you can use
it and enjoy it while you're paying it off, the
ultimate buy now, pay later. Four Compared to some investments,
it's reasonably straightforward to understand. Five. Medium property values historically
have grown over time. Six it's typically a stable investment
(20:53):
over the medium to long term. Seven it can generate
income and or reduce the costs of running a business.
Eight it offers the potential to reduce your tax with
negative gearing. Nine it can create access to funding when
used as a security rather than cash. Ten you can
(21:14):
have a direct impact on improving its value, unlike buying
shares in a company. Cons of investing in property. One
it can be really, really expensive. Two it may keep
you in debt for a long time. Three it's difficult
to predict interest rates, which can impact your standard of living.
(21:35):
Four you may not be able to afford the house
of your dreams, so find yourself paying off something you
don't really love unless we change your property mindset. More
on that to come. Five. It's hard to cash in quickly,
what investors call an illiquid asset, unlike cash, which is
liquid and immediately available.
Speaker 4 (21:56):
Six.
Speaker 2 (21:57):
Holding onto property costs money in ongoing maintenance fees, rates,
body corporate and perhaps in lost or below market rental income,
among other things. Seven. Property is not a set and
forget investment. It requires ongoing care and maintenance. Eight. Property
involves many moving parts and people, which can bring potential issues. Nine.
(22:20):
Capital growth is not guaranteed. Despite what people like to say,
the property market does not uniformly rise in every area
every seven years and ten. It could be risky if
you invest in areas slow to develop, or you are
trying to make fast money using a flip strategy during
times when the market drops. Your property beliefs, values, and goals,
(22:43):
let's look a little more closely at your personal property beliefs, skulls,
and values. You may find that working through the prompts
we're about to get to will get you to reconsider
your initial Why that's good. It means you really started
thinking more deeply about what property means. For you and
how it might fit into and impact your life. To
figure out what makes you tick and why you're thinking
(23:06):
about committing to the biggest expense of your lifetime, Let's
walk through a series of questions together. Either write your
notes in the space in your workbook, or if you're
a dedicated diarist, grab a notebook and a pen. If
you're like me, a shiny new one, especially for all
your property dreams, goals and strategies. Let's begin, what are
your main reasons for buying property? Seriously? Have you really
(23:30):
sat down and thought about all of this? I mean properly.
A lot of people we talk to at Zella and
She's on the Money think that they want to get
into property without ever having spent the time to consider.
Why is owning real estate really that big on your
list of priorities or is it just something you've been
conditioned to believe is important. As we've talked about, we
(23:53):
grew up being fed the great Australian dream. But take
a look around, friend, is that your dream? Does it
chime who you want to be? Australia has thankfully become
far more open and inclusive in recent years. People live
in all sorts of families and practice wildly different lifestyles.
The desire to follow the norm is losing its grip
(24:14):
if there's even a norm at all. So before you
decide to commit to a significant cash drop, be sure
you know why you're doing it. All reasons are equally valid,
So this is just about getting clear on your reason.
Why are you thinking of buying property for a place
to call your own, to live in, just for now,
(24:35):
to live in well into the future, as a wealth
creation strategy, as an investor, as your retirement plan for
its long term growth, Because you're sick of landlords and
want to say in the place, because you're terrified of
becoming homeless, because your parents told you it was a
good idea. Actually, come to think of it, no thanks,
(24:56):
or at least not right now. Whatever you're responsive is
write it down in your workbook. The financial commitment of
a property loan. If you are seriously thinking about investing
in property, do you understand what it means for your finances?
We have gone through several reasons why owning property may
be a particularly valuable investment for women, but that doesn't
(25:17):
necessarily apply to all women, and certainly not all people.
Taking on home ownership is a serious financial commitment. Not
only must you save up for a deposit, you must
first establish yourself as a positive loan risk for the
bank to take on. That could mean extra effort to
create an additional savings account, work to clear your existing
(25:38):
personal loans, reducing or eliminating your credit card debts, and
possibly taking on extra work or employment. Are you ready
to take on a property loan? Have you got it
in you right now? And even if you can do
it for a sprint, are you sure you can sustain
it for the long term? Remembering that a standard mortgage
(25:59):
repayment term is thirty years. What savings do you already
have and how much more might you need for a deposit?
How much can or are you willing to direct towards
paying a home loan for the next thirty years or so?
Are you comfortable with the restrictions this might have on
your lifestyle? In your workbook, list out some things you
(26:20):
might have to forfeit if you were paying down alone.
How does this make you feel the reality of managing
a long term loan now? I don't want to get
all doom and gloomy, but you have to consider how
you might be able to keep paying your mortgage if
the worst happened. We'll look more deeply at this in
chapter seven, so no need to get tiery, but it's
(26:40):
definitely worth thinking about. During COVID, the government introduced wage support,
banks offered moratoriums on repayments, and many landlords went over
and above to keep their tenants housed. But it won't
always be all in together when shit hits the fan.
If you already had a home loan and got so
severely injured, yess today that you couldn't work today? What then, Hopefully,
(27:03):
after listening to this book, you'll have got yourself some
reliable insurances and some SotM. Smart savers will already have
a decent emergency fund, which they will increase when they
become homeowners. But these plans don't magically appear, and neither
do the funds to support them. Make this conversation part
of your planning. Are you prepared to manage a long
(27:25):
term loan? Since nineteen ninety to now, mortgage interest rates
have ranged between two point one four and fifteen point
five percent. Could you manage this? If so, how what
plans would you put in place? What about if you
couldn't work for whatever reason. Can you afford insurance that
would cover you in this event? And or other support plans?
(27:48):
Who might be there for you? Where might you turn?
Is this a realistic plan for the short and long term?
Write down your responses in your workbook. The responsibility of
owning property. Owning a property might sound like a dream
come true. But even once you've saved that deposit, bought
the place, and furnished it with your snazzy but affordable knickknacks,
(28:10):
it's no time to kick back and lie like a
lady lizard drinking in the sun. Owning a property comes
not only as an ongoing financial cost, but a social
and emotional one too. If you bought your place to
live in, it's almost a guarantee that something many things
had to give. Maybe you now have a ninety minute
one way commute. Maybe you need to spend every second
(28:33):
Sunday mowing the lawns because the landlord doesn't cover it anymore.
Maybe you had to fall for two months of Sunday
brunches because your whole water system blew up the day
after you moved in. If you get bored with this
place or itchy for a new lifestyle, one year hiatus
in Hawaii, anyone changing things up becomes far more difficult
as a homeowner. As a renter, you simply give notice
(28:56):
and move on with your life. If the property is yours,
it's yours to deal with too. That's not to say
you can't rent it out or even sell it, but
both these are more hassled than giving two weeks notice.
Then there's being a landlord. If you're an investor owner,
you may not have sacrificed your walk to work proximity,
but if you have tenants, you may be required to
(29:17):
fix any issue they have with the house or appliances
quick smart. If the breakdown happens over a weekend and
is considered a health risk, Hello, emergency call out Bee.
Whatever compromises you talked yourself into when you bought the place,
triple them. More things go wrong than you will have
ever thought of. Soon enough, you'll have listened to every
(29:38):
single one of my podcasts, and that commute won't seem
so shiny anymore. That lovely lorn that you imagined lying
on reading She's on the money Book after She's on
the money Book has now become your worst nightmare. Those
dream tenants who promise to lovingly tend to your place.
They're gremlins. The trouble with property is it's a long
term commitment. You'll probably have times when you get more
(29:59):
sick of it then it could ever get of you worse. Still,
unlike an annoying ex boyfriend or a bad haircut, you
can't just ignore your house and its problems when you're
over it. No matter what. Those pesky bills will keep
showing up, but the bank will keep drawing down its fees.
When you sign up for a home loan, you're committing
to possibly the longest relationship you'll ever have. There are
(30:21):
plenty of lifestyle limitations that come with owning property beyond
just the mortgage repayments. That's not to say it won't
be worth it overall, but now's the time to have
a good hard think about whether you're ready to give
up your current lifestyle to support your dream and future you.
Are you ready to be a responsible property owner? Is
(30:41):
making a home something that interests you? To what degree
are fluffy cushions enough for Do you dream of floor
plans and paint colors and exactly which oven you'd like
in your kitchen? What about if these break down, if
the windows start leaking, or the gas heating stops working,
or your front door won't shut properly. Have you got
the time, inclination, and budget to deal directly with builders
(31:03):
and handymen to keep the place upright and secure? Are
you ready to settle into living in a place for
possibly the next thirty years or at least seven To
make it worthwhile, write down your responses in your workbook
the responsibilities of being a landlord. There's a lot of
chat around about the terrors of landlords, so let's tame
(31:25):
that beast, shall we. If you're thinking about owning property,
chances are you may one day become a landlord yourself,
either by choice or necessity, if you've been a renting yourself,
or even if you've just watched the news lately. It's
clear that while some landlords are greedy monsters, the majority
are regular folk who got lucky and or worked hard
(31:47):
to get a foot into property investment. These people are
now doing their best to look after their own finances
and the people who live in the home they provide.
Everyone has a choice in this world to be a
dick or to not be a di So you can
be a landlord, just don't be a landlord dick. The
best way to do that is to know and fulfill
your responsibilities under the law, and ideally go beyond those.
(32:10):
To ensure your tenants are comfortable. You don't have to
buy them super large fluffy bean bags or send a
weekly grosser's box, but a nice welcome note and the
invitation to get in touch should they need anything goes
a long way to making them feel human. If you
decide to employ a property manager, make sure to choose
an ethical one who will do right by you and
(32:31):
your tenants. Also, and most importantly, make sure you have
allocated enough funds to looking after the joint. As a landlord,
you may have to fix things straight away, even if
it's something you might live with if it we your
own home, so make sure you have the cash to
service your property. You might need a redraw facility on
your property loan, or consider getting landlord's insurance to help
(32:54):
cover unexpected costs. Being financially responsible as an investor owner
will take the emotion out of it and help ensure
that both you and your tenants are looked after in
the long run. Are you ready to be a responsible
landlord if you're a landlord, you must intend to issue straightaway.
Do you have the time, inclination, and budget to make repairs?
(33:17):
If not, are you willing to pay and work with
a managing agent to do so. Does your budget stretch
to covering rental vacancies, tenants and or building damages, special
levies and other unexpected costs. Are you willing to sacrifice
your own lifestyle if needed to ensure your tenants and
property are looked after? Write down your responses in your workbook.
(33:41):
The ethical implications of owning property further to the landlord dilemma.
People are becoming increasingly aware of the social impact of
their decisions. Investors call this value investing, and in recognition
of this, many trading platforms allow you the option to
invest only in funds companies that align with your personal values.
(34:03):
A similar thought process can apply in property. The choice
you make in materials to renovate or fix your home,
what kind of power you use for your heating and cooking,
and even what kind of plants you grow all affect
the environment. The impact of one person owning several houses
when it's well acknowledged that thousands of people around Australia
(34:23):
sleep rough every night, and that our properties sit on
unseated Aboriginal land can give some people the ick. There
are many ways, large and small, to help rebalance such disparity.
You might consider investing in social housing or land reclamation projects,
or contributing some of your income to supporting marginalized groups.
(34:43):
For example, Pay the Rent is a grassroots Aboriginal initiative
encouraging Australians to pay a small percentage of the income
as rent for living on unseated lands. There are several
organizations that provide shelter to vulnerable women, who welcome donations
both in time and money. As with any philanthropy, you
(35:03):
can give inkind Support, fundraise, or myriad other initiatives that
help to counterbalance the impact you have on the planet.
It's up to you how creative you want to get.
I'd love to hear your ideas, so be sure to
let us know by commenting on our install or via
thisshes on the money website. Together we can all make
the difference. What are your ethics around property ownership? As
(35:28):
with any investment or lifestyle, there are ethical implications to
your decision and ways to mitigate against the negative impacts.
Have you considered investing in schemes or activities that can
work to build housing affordability. Can you list a few options?
How about ensuring your building is environmentally sustainable? What are
some things you could implement to ensure this? Write down
(35:51):
your responses in your workbook Your Real Why. It's easy
to see why and how we inherit beliefs from society
and others around us. If we're not actively reflecting on
our own personal reasons and personal beliefs around life, money,
and what's important to us, we can be swayed by
others stories, views and fears, many of which have been
(36:14):
well developed decades ago against very different circumstances. Not to
mention that you, my pretty butterfly, are the only you
on this planet and so what you think, feel, and
ultimately do should be individual to you. Your real Why
buying a house is important to you. Working through this chapter,
you have reviewed your property, money beliefs and thought more
(36:36):
about which of these are true to your story and
those you may have inherited from others. Reflecting on these,
write down in your workbook what is now true for you?
Property story from Ruby thirty two from New Zealand and
New South Wales. My partner and I are from New Zealand.
After years of saving for a house, we became demoralized
(36:59):
by increasing prices and the hundreds of people at open
homes where we were looking to buy in Wellington. After
the COVID borders opened, we decided to give up on
our New Zealand property dream, moved to Sydney and chuck
our money into shares, bonds and a couple of startup businesses.
We are thankful to not have the one million dollars
of debt and rising interest costs to think about if
(37:21):
we had bought a house. We now have no desire
to buy property and I can't see that changing in
the next five to ten years. Mccanna thirty from Victoria.
I moved to Australia when I was nineteen and since
then have dreamt of owning my own house instead of
paying someone else's mortgage. We started saving for a loan
(37:42):
deposit in twenty fifteen when I was earning just forty
three thousand dollars a year and my husband was earning
twenty five dollars an hour as a casual. As we
didn't have much knowledge of the property market, our mortgage
broker was invaluable guiding us from the start of the
process until the end. Now you're a family friend. We
secured a mortgage on incomes of fifty four thousand dollars
(38:04):
and fifty thousand dollars respectively. We've been in our house
for a bit over four years and now have enough
equity to buy an investment house. The market is scarier
than it looked when we purchased the first time, but
my knowledge keeps growing and I know I'll never look back.
Take note, buying property is a big decision and a
(38:25):
serious commitment, possibly the longest relationship you'll have in your life,
so not one to take on lightly. Property comes with
pros and cons and is not the only pathway towards
building future wealth. Dig deep to identify the true reason
you want to buy property if you still do, and
use that to guide you from here. Guys, that was.
Speaker 4 (38:49):
The first chapter of Property with Shees on the money, and.
Speaker 2 (38:52):
I really hope that you're inspired to take action when
it comes to getting on the property ladder, if that's
what you want to get up to, and you smash
all of your property goals, whether you're getting your first
foot on the ladder, or you're hunting for your dream home,
or you're planning your fourth investment property. I don't mind
what you're doing. I'm just so grateful to be part
of the journey. If you loved this, you can purchase
(39:13):
property it with She's on the Money from all Good
book retailers, or you can listen to the rest of
this audio book by buying it on any good audiobook retailer.
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
(39:34):
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial.
Speaker 4 (39:46):
Advice tailored towards your needs.
Speaker 2 (39:48):
Victoria Divine and She's on the Money are authorized representatives
of Money Sherper Pty Ltd ABN three two one six
four nine two seven seven zero eight AFSL four five
one two eight nine
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