May 19, 2024 • 14 mins
- Cam and Maddie’s first guest on Saturday explained why many of Canberra’s real estate agents and executives were in Tasmania through the week
- Michael Yardney, CEO of Metropole Property Strategists provided a federal budget review through his real estate lens
- Yianni Pazios, Director & Senior Broker at Aspire Lending examined a worrying trend with new housing loans
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Episode Transcript
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Speaker 1 (00:01):
Cameron Rene's Real Estate show sounds like Canbra sounds like
Mixed on a six point three JWL and introducing homes
of uncompromising quality across premium locations.
Speaker 2 (00:12):
Hi.
Speaker 3 (00:12):
There, it's Cameron Renee.
Speaker 4 (00:13):
Here. Each week on Mixed one and six point three
we present the Mixed Oney six point three Real Estate Show.
Speaker 5 (00:18):
We speak with industry experts, leaders in Canberra, property national
analysts and arrange above property specialists.
Speaker 4 (00:25):
So let's take a listen to some of the things
we looked at in last Saturday.
Speaker 2 (00:28):
Show down in Hobart. This weekend we'll pass not this weekend,
this week I should say we're on the weekend. Now,
there was the ans in Real Estate Institute Australia one hundred.
Now a part of this was some awards that Canberra
had a bit of a contingency going to cam Is
that correct?
Speaker 3 (00:46):
Absolutely?
Speaker 5 (00:47):
So the Real Estate Institute, we know have all represented
by states and territories and we are here in Canberra
as well. They do such an amazing job and so
as a part of their big conference and everything, that
was the big gala awards night on Thursday night and
we were successful. I want to say good morning to
Jane Mackin from Woden L J.
Speaker 3 (01:08):
Hooker.
Speaker 5 (01:09):
Also the team from Colliers as well picked up a
couple of gongs. But right now we welcome a guest
who also was a winner.
Speaker 2 (01:16):
That is correct, Hannah gil director of Property Management at
the Property Collective and President of the Real Estate Institute
of the Act. Good morning, Hannah, Good.
Speaker 4 (01:24):
Morning guys, thanks having me back on the show.
Speaker 2 (01:26):
Well, congratulations first off for getting to the awards, being nominated,
but also winning as well.
Speaker 4 (01:32):
Thank you as a pretty special event to be a
part of.
Speaker 2 (01:35):
And now why is it so important to have these
big national events taking place?
Speaker 4 (01:40):
Well, I think I mean, first and foremost, it's an
opportunity for collaboration and I think particularly this year as
you've touched on one hundred years of the Real Estate
Institute of Australia plus fifty years of the Real Estate
Institute the Act, so an opportunity for reflection and celebration.
And I think there's a lot of hard work that
goes into being in a real estate role every day
and it's a really good opportunity to celebrate.
Speaker 5 (02:00):
As I said, Shaw, while ago, there was many agents
and industry types who went down to Tasmania for this event.
Speaker 3 (02:07):
What were the two awards that you took out, Hannah.
Speaker 4 (02:10):
Yeah, wearing Property Collective hat. We were lucky enough to
take current Property Management Team of the Year and Jared
Kirchner won Business Development Manager here.
Speaker 3 (02:17):
Yeah, so good.
Speaker 5 (02:18):
And so as you're all down there speaking to other
agents from around Australia, what was everyone else talking about
through the event? What's the number one thing agents are
talking about at the moment?
Speaker 4 (02:28):
Well, look, I think there was a real seam. We're
just trying to continue to lift the standards of professionalism
and adapt into the changing landscape we see within the
industry for things like the emerging AI capabilities and anti
money laundering and the evolution of how we work with
our clients to get the best result for them was
probably the main focus of the event.
Speaker 2 (02:45):
Now, so we had our local services and agents and
offerings up against all the other biggest cities. How do
you think Camber Real Estate matches in the standard of
quality with those bigger cities like Sydney Melbourne for example.
Speaker 4 (02:57):
I mean there is the same bias. I think they
will and truly compete in national space and I think
the awards recognition on the night was a real testament
to that. We actually took our Act took about seven
of the twenty five awards, which is the most of
any state or territory at the event. We also had
Alex Brown representing us as a finalist for the Austro's Auctioneering,
so across the board the ACT represented really strongly and
I think that reflected as a the award recognition on
(03:18):
the night.
Speaker 5 (03:19):
Yeah, and of course you know there's representing different brands
up here in Canberra, but no doubt you've sort of
you know, everyone knows everyone. You all came together and
had a great night and Alick does such a good
job as well, and he's part of our show on
Mixed one or six point three.
Speaker 3 (03:32):
So the feeling was really good down there, no doubt.
Speaker 4 (03:35):
Yeah, it was a great feeling. I mean, we love
seeing one another win and we love seeing the ACT
represent strongly. So certainly health helps us, you know, build
on our professional standards and continue to build confidence for
our customers. I think seeing those.
Speaker 2 (03:46):
Results and it feels it makes us feel good knowing
that we're can Baron's and we're doing so well at
all these big awards. I feel, no matter what industry
or sport or anything that you're at. If you find
out a can baron beat other states and territories for
a reward, yeah, we got it. We're good.
Speaker 3 (04:01):
It's on display up here of course.
Speaker 5 (04:03):
You know, I'm in Brisbane at the moment for Magic
Round and anyone with green on it's like up the
milk and you're all laughing.
Speaker 3 (04:08):
You don't know these people, but.
Speaker 5 (04:10):
That feeling of you know, representing Camera at the national
level is just so wwsome.
Speaker 6 (04:15):
So well done, Hannah, thank you, you appreciate.
Speaker 2 (04:18):
That all right. That was Hannah gil director of Property
Management at the Property Collective and president of the Real
Estate Institute of Act. There it was Mudget week CAM
and lots of people talking about lots of different things
within it, and we thought maybe we should take a
look at the numbers through a real estate lens.
Speaker 5 (04:34):
I had dinner at Tyler Kingston Hotel on Monday night
just as everyone was coming in and it was like
it was a packed at Saturday afternoon. You could not
move in the place, and of course that was the
same at many venues in and around Parliament House, just
getting ready for a massive week in the nation's capital.
Speaker 2 (04:51):
Indeed, and to help us go through the numbers from
that real estate lens is mister Michael Yardney, CEO of
Metroal Property Strategists and host of the Michael Yardney Podcast,
a housing market expert. We should say, good morning, Michael.
Speaker 7 (05:04):
Hello, maybe hi I cam.
Speaker 2 (05:06):
Hi, So tell us how will the budget help with
this housing crisis? I feel like that's the probably the
number one thing that we wanted to find out the
numbers on.
Speaker 7 (05:13):
It is, and at least they acknowledged the housing crisis,
as did the budget response from Peter Dutton. But we've
got to remember it's an election year coming up and
you guys in camera would know better than me what
that means. Lots of rhetoric and in my mind it's
unlikely to really help the severe housing crisis that we're
(05:36):
going to have for a few more years. It's going
to say quite some time to correct the imbalance at present.
Speaker 5 (05:42):
Okay, so the budget has forecast at inflation mole come
well can now come under control much quicker than what
the Reserve Bank estimates.
Speaker 3 (05:51):
Is that how you're seeing it as well?
Speaker 6 (05:53):
Well?
Speaker 7 (05:53):
According to Treasury Headline and fation could return to the
RBA's target range by the end of this year. Now
that's earlier that they said in their media economic forecast,
but cami'sy here earlier than the Reserve Bank was forecasting.
And this week unemployment rose a bit, and I guess
both of those things look good for interest rate rises.
It means unlikely to have any rises. And you know what,
(06:16):
interest rates could even fall earlier than we keep talking about.
Clearly that's what the government is looking for in an
election year, isn't it.
Speaker 2 (06:24):
Yes, Ideally the interest rates going way way way down
and then never coming ever back up would be great
for my bank account. Obviously, they announced a couple of
different initiatives as well. Do you reckon that will help
meet the goal that they're trying to do of building
one point two million new homes.
Speaker 7 (06:39):
Well, they're not going to build any homes. Maybe they're
going to want private builders developers to do that. So yes,
there are lots of initiatives, but they were really framed
in light of that already announced target. There's going to
be nine point six billion spent on housing and crising
accommodation and that's really impressive, except when you spread it
(07:03):
around Australia, it actually isn't that many homes. But at
least they're thinking about it. There's also going to be
infrastructure spending, but it's a continuation of existing programs, nothing
new coming out. Interestingly, they're wanting to train more people
in the homebility industry. That's good, we don't have enough apprentices.
But they're planning to train twenty new thousands, sorry, twenty
(07:25):
thousand new tradees. It's going to take I don't know,
three or four years for them to get through tape,
and that's only going to increase the construction workforce by
one point seven percent. I'm not trying to be negative.
It's all pointing in the right direction. But boy, there's
a lot more to do. Maddie.
Speaker 5 (07:42):
Yeah, and I mean we listen to Michael Hopkins from
the MBA speak about this often and there's plenty more
to do. Which are the housing measures will help with
housing affordability in your opinion?
Speaker 7 (07:52):
None? None, because really it's the lack of supply unless
interest rates do come down, and the Reserve Bank has
control of that, not the government and not the budget.
But all the new buildings that are going to be
going to cost a lot more, whether they're houses, whether
they're townhouses, or whether their apartments, and the reason we
(08:13):
haven't under supplies because it costs more today than the
market is prepared to pay, cost more to build new dwellings.
So until prices rise, new dwellings aren't going to come
out of the ground, which means we're going to have
an ongoing supply. Developers aren't going to take a risk
if they can't make money.
Speaker 3 (08:29):
You can, no, absolutely not.
Speaker 5 (08:31):
And so mate, as you stood back and look at
the whole thing after it was all announced, and as
you said, the Opposition then came out with their budget
reply was your overall opinion of the budget? Looking again
at it through the lens of housing in Australia, at least.
Speaker 7 (08:46):
They're acknowledging now a housing crisis. It's not a shortage.
It's much more than that. When people can't rent accommodation
where they want to live or where they need to live,
near their work or near their families. And it's more
than just a shortage when people young families are having
difficulty getting in the market. So it's step one. Acknowledge it, now,
(09:08):
come up with some ideas, not just rhetoric.
Speaker 5 (09:11):
Yeah, it's step one of about a thousand steps. So
isn't it, Michael, I agree.
Speaker 2 (09:15):
With that, kem Well fingers cross that we see some
action finally coming to place. But as we all know,
action speaks louder than words, so we'll see when and
if that does happen. Thank yourself was for joining us
this morning.
Speaker 7 (09:25):
Michael, my pleasure. Maybe that was.
Speaker 2 (09:27):
Michael Yarney, the CEO of Metropol, Property Strategist and the
host of the Michael Yardney podcast.
Speaker 3 (09:31):
There split loans.
Speaker 2 (09:33):
Now when banks are talking about them, and when we're
talking about them, you probably usually think about breaking loan,
not paying a percentage is fixed, paying a percentage as variable.
But with these cost of living pressures and you know,
the housing crisis that we're just talking about, with the
budget aspect, banks are apparently starting to see bit of
a growing trend, aren't they can.
Speaker 5 (09:53):
Yeah, absolutely, And when you look at it, for me,
like straight away, warning signs just go up at this.
Speaker 3 (09:59):
But it is a trend that is developing.
Speaker 5 (10:01):
So we thought we'd have a little bit of a
dig into it and say good morning to Yanni Pasios,
director and senior broker at a Spire Lending. Yanni, good
morning and welcome back to the show.
Speaker 6 (10:11):
Thanks for having me good morning.
Speaker 2 (10:13):
Now, what would be a typical example of this sort
of arrangement with split loans?
Speaker 6 (10:18):
Look, we usually see it with younger siblings looking to
get into the property market. Usually they're single, they have
a sort of life partner, so simbling, it's getting into
a property together, helps with borrowing capacity, deposits, so and
and so forth. Sometimes you see it with friends in
the younger years. Usually the siblings is where we see
it a lot.
Speaker 5 (10:37):
Okay, and so, as I said at the start, there
the warning signs just go up everywhere. For me, what
are some of the things that can go wrong with
an arrangement like this?
Speaker 7 (10:48):
I look, the.
Speaker 6 (10:49):
Typical example is when they get a bit older and
find a partner or decide to move away or something else.
It's difficult for one of the other siblings to sort
of buy them out. Capacity is tough. That's the main
thing we see after a few years is just they
sort of grow apart from each other and have to
sort of leave the transaction.
Speaker 2 (11:07):
I feel like going into it with your sibling versus
a friend would be a very different conversation as well.
Do you see the pros and cons of either of those?
Speaker 7 (11:16):
Oh?
Speaker 6 (11:17):
Look, siblings it's a family, I guess, but friends can
go apart as well. So that's that's the big risk factor,
is you know, three four or five years on the track,
you know, past change, people move away, and then it
becomes difficult to sort of break the relationship, especial when
there's a properly the other end of it.
Speaker 5 (11:34):
Yeah, and so is this something money lenders also approach
with much caution or are they just goinge ho, they're
in it's just like okay, let's do it.
Speaker 6 (11:42):
Yeah, now as heaps of caution, like the colon Off
Bank have got a product for it, and some of
the other lenders won't even sort of do it unless
you're going as a sort of co borrel is. But
the general arrangement is you sort of guarantee each other's
debt and a couple of lenders have got specific sort
of products that that sort of stuff.
Speaker 2 (12:00):
Now, if there's anyone listening that is maybe considering doing this,
what's something that they should consider when doing it? If
that makes sense?
Speaker 6 (12:07):
Yeah, what does the next five years look like? Is it?
Are you planning to stick around with that person or
whether it's a sibling or a friend, and that you're
going to sort of go into the arrangement with what
does the next sort of five or ten years look like?
And is there a bit of an exit strategy should
you want to sort of move away from it?
Speaker 2 (12:23):
Yeah, now you mentioned it was usually kind of popular
throughout the younger generation. Where is this different from like
a guaranteur kind of thing that their parents could help
them with.
Speaker 6 (12:33):
Yeah, so parents can help just both sort of giving
gifts or cash sums, but parents can actually put property
up as well so that the younger borrow is don't
have to find a deposit. But this sort of comes
into inker place, you know, with siblings that have got
a bit of a deposit and they want to get
their foot in the door, but you know, doing it
on their own is tough. So guarantees or parental guarantees
(12:58):
work a little bit differently, different concept, but it's easy
to remove the guarantee down the track rather than sort
of move away from the property transaction with friend or whatever.
Speaker 5 (13:09):
And look, I'm going to make a massive general assumption here,
but it's sort of true. I mean, we know and
you mentioned again that it's younger people, and what does
that look like in sort of five years, Tom, I mean,
many people in this generation, not everyone of course, but
they don't know what's happening in five minutes, let alone
five years.
Speaker 6 (13:28):
Yeah, absolutely, so, Yeah, definitely some considerations before entering into it.
But yeah, I always sort of say it was the
next five years, look like how hacking you exit the transaction?
Speaker 4 (13:40):
Yeah, amicably.
Speaker 2 (13:42):
Yeah, I know we're just talking about as mainly kind
of people trying to get into the property market. But
do you see people teaming up in this way as
an investment kind of thing to try and get into
the investment side of property.
Speaker 6 (13:53):
Yeah, absolutely absolutely. And look and sometimes the five years
down the track means they've got some capital growth.
Speaker 4 (13:59):
And they've they've made the right move and.
Speaker 6 (14:01):
They can sort of both you know, leave that transaction
together and then go their own ways. But yeah, definitely
for investing or to live in we see with everything.
Speaker 2 (14:10):
Yeah, well, very interesting, good to see that it is
an option, but just with a few red flags.
Speaker 5 (14:14):
That might be coming with its many many red flags
for me.
Speaker 2 (14:18):
Well, thank you so much for joining us this morning, Yannie,
no problem, have a great day, guys, you do. That
was johny Pazzio's director and senior broker out a Spire
lending well.
Speaker 5 (14:27):
Those are the interviews we most enjoyed in last week's
Mix one O six point three real Estate Show. If
you love hearing about the latest trends, or you're just
up for a sticky beak, be sure to drop by
for a listen this Saturday between nine and ten.
Speaker 1 (14:40):
Canon Rene's Real Estate Show. Sounds like camera, sounds like
mix on a six point three
Cameron Rene's Real Estate show sounds like Canbra sounds like
Mixed on a six point three JWL and introducing homes
of uncompromising quality across premium locations.
Speaker 2 (00:12):
Hi.
Speaker 3 (00:12):
There, it's Cameron Renee.
Speaker 4 (00:13):
Here. Each week on Mixed one and six point three
we present the Mixed Oney six point three Real Estate Show.
Speaker 5 (00:18):
We speak with industry experts, leaders in Canberra, property national
analysts and arrange above property specialists.
Speaker 4 (00:25):
So let's take a listen to some of the things
we looked at in last Saturday.
Speaker 2 (00:28):
Show down in Hobart. This weekend we'll pass not this weekend,
this week I should say we're on the weekend. Now,
there was the ans in Real Estate Institute Australia one hundred.
Now a part of this was some awards that Canberra
had a bit of a contingency going to cam Is
that correct?
Speaker 3 (00:46):
Absolutely?
Speaker 5 (00:47):
So the Real Estate Institute, we know have all represented
by states and territories and we are here in Canberra
as well. They do such an amazing job and so
as a part of their big conference and everything, that
was the big gala awards night on Thursday night and
we were successful. I want to say good morning to
Jane Mackin from Woden L J.
Speaker 3 (01:08):
Hooker.
Speaker 5 (01:09):
Also the team from Colliers as well picked up a
couple of gongs. But right now we welcome a guest
who also was a winner.
Speaker 2 (01:16):
That is correct, Hannah gil director of Property Management at
the Property Collective and President of the Real Estate Institute
of the Act. Good morning, Hannah, Good.
Speaker 4 (01:24):
Morning guys, thanks having me back on the show.
Speaker 2 (01:26):
Well, congratulations first off for getting to the awards, being nominated,
but also winning as well.
Speaker 4 (01:32):
Thank you as a pretty special event to be a
part of.
Speaker 2 (01:35):
And now why is it so important to have these
big national events taking place?
Speaker 4 (01:40):
Well, I think I mean, first and foremost, it's an
opportunity for collaboration and I think particularly this year as
you've touched on one hundred years of the Real Estate
Institute of Australia plus fifty years of the Real Estate
Institute the Act, so an opportunity for reflection and celebration.
And I think there's a lot of hard work that
goes into being in a real estate role every day
and it's a really good opportunity to celebrate.
Speaker 5 (02:00):
As I said, Shaw, while ago, there was many agents
and industry types who went down to Tasmania for this event.
Speaker 3 (02:07):
What were the two awards that you took out, Hannah.
Speaker 4 (02:10):
Yeah, wearing Property Collective hat. We were lucky enough to
take current Property Management Team of the Year and Jared
Kirchner won Business Development Manager here.
Speaker 3 (02:17):
Yeah, so good.
Speaker 5 (02:18):
And so as you're all down there speaking to other
agents from around Australia, what was everyone else talking about
through the event? What's the number one thing agents are
talking about at the moment?
Speaker 4 (02:28):
Well, look, I think there was a real seam. We're
just trying to continue to lift the standards of professionalism
and adapt into the changing landscape we see within the
industry for things like the emerging AI capabilities and anti
money laundering and the evolution of how we work with
our clients to get the best result for them was
probably the main focus of the event.
Speaker 2 (02:45):
Now, so we had our local services and agents and
offerings up against all the other biggest cities. How do
you think Camber Real Estate matches in the standard of
quality with those bigger cities like Sydney Melbourne for example.
Speaker 4 (02:57):
I mean there is the same bias. I think they
will and truly compete in national space and I think
the awards recognition on the night was a real testament
to that. We actually took our Act took about seven
of the twenty five awards, which is the most of
any state or territory at the event. We also had
Alex Brown representing us as a finalist for the Austro's Auctioneering,
so across the board the ACT represented really strongly and
I think that reflected as a the award recognition on
(03:18):
the night.
Speaker 5 (03:19):
Yeah, and of course you know there's representing different brands
up here in Canberra, but no doubt you've sort of
you know, everyone knows everyone. You all came together and
had a great night and Alick does such a good
job as well, and he's part of our show on
Mixed one or six point three.
Speaker 3 (03:32):
So the feeling was really good down there, no doubt.
Speaker 4 (03:35):
Yeah, it was a great feeling. I mean, we love
seeing one another win and we love seeing the ACT
represent strongly. So certainly health helps us, you know, build
on our professional standards and continue to build confidence for
our customers. I think seeing those.
Speaker 2 (03:46):
Results and it feels it makes us feel good knowing
that we're can Baron's and we're doing so well at
all these big awards. I feel, no matter what industry
or sport or anything that you're at. If you find
out a can baron beat other states and territories for
a reward, yeah, we got it. We're good.
Speaker 3 (04:01):
It's on display up here of course.
Speaker 5 (04:03):
You know, I'm in Brisbane at the moment for Magic
Round and anyone with green on it's like up the
milk and you're all laughing.
Speaker 3 (04:08):
You don't know these people, but.
Speaker 5 (04:10):
That feeling of you know, representing Camera at the national
level is just so wwsome.
Speaker 6 (04:15):
So well done, Hannah, thank you, you appreciate.
Speaker 2 (04:18):
That all right. That was Hannah gil director of Property
Management at the Property Collective and president of the Real
Estate Institute of Act. There it was Mudget week CAM
and lots of people talking about lots of different things
within it, and we thought maybe we should take a
look at the numbers through a real estate lens.
Speaker 5 (04:34):
I had dinner at Tyler Kingston Hotel on Monday night
just as everyone was coming in and it was like
it was a packed at Saturday afternoon. You could not
move in the place, and of course that was the
same at many venues in and around Parliament House, just
getting ready for a massive week in the nation's capital.
Speaker 2 (04:51):
Indeed, and to help us go through the numbers from
that real estate lens is mister Michael Yardney, CEO of
Metroal Property Strategists and host of the Michael Yardney Podcast,
a housing market expert. We should say, good morning, Michael.
Speaker 7 (05:04):
Hello, maybe hi I cam.
Speaker 2 (05:06):
Hi, So tell us how will the budget help with
this housing crisis? I feel like that's the probably the
number one thing that we wanted to find out the
numbers on.
Speaker 7 (05:13):
It is, and at least they acknowledged the housing crisis,
as did the budget response from Peter Dutton. But we've
got to remember it's an election year coming up and
you guys in camera would know better than me what
that means. Lots of rhetoric and in my mind it's
unlikely to really help the severe housing crisis that we're
(05:36):
going to have for a few more years. It's going
to say quite some time to correct the imbalance at present.
Speaker 5 (05:42):
Okay, so the budget has forecast at inflation mole come
well can now come under control much quicker than what
the Reserve Bank estimates.
Speaker 3 (05:51):
Is that how you're seeing it as well?
Speaker 6 (05:53):
Well?
Speaker 7 (05:53):
According to Treasury Headline and fation could return to the
RBA's target range by the end of this year. Now
that's earlier that they said in their media economic forecast,
but cami'sy here earlier than the Reserve Bank was forecasting.
And this week unemployment rose a bit, and I guess
both of those things look good for interest rate rises.
It means unlikely to have any rises. And you know what,
(06:16):
interest rates could even fall earlier than we keep talking about.
Clearly that's what the government is looking for in an
election year, isn't it.
Speaker 2 (06:24):
Yes, Ideally the interest rates going way way way down
and then never coming ever back up would be great
for my bank account. Obviously, they announced a couple of
different initiatives as well. Do you reckon that will help
meet the goal that they're trying to do of building
one point two million new homes.
Speaker 7 (06:39):
Well, they're not going to build any homes. Maybe they're
going to want private builders developers to do that. So yes,
there are lots of initiatives, but they were really framed
in light of that already announced target. There's going to
be nine point six billion spent on housing and crising
accommodation and that's really impressive, except when you spread it
(07:03):
around Australia, it actually isn't that many homes. But at
least they're thinking about it. There's also going to be
infrastructure spending, but it's a continuation of existing programs, nothing
new coming out. Interestingly, they're wanting to train more people
in the homebility industry. That's good, we don't have enough apprentices.
But they're planning to train twenty new thousands, sorry, twenty
(07:25):
thousand new tradees. It's going to take I don't know,
three or four years for them to get through tape,
and that's only going to increase the construction workforce by
one point seven percent. I'm not trying to be negative.
It's all pointing in the right direction. But boy, there's
a lot more to do. Maddie.
Speaker 5 (07:42):
Yeah, and I mean we listen to Michael Hopkins from
the MBA speak about this often and there's plenty more
to do. Which are the housing measures will help with
housing affordability in your opinion?
Speaker 7 (07:52):
None? None, because really it's the lack of supply unless
interest rates do come down, and the Reserve Bank has
control of that, not the government and not the budget.
But all the new buildings that are going to be
going to cost a lot more, whether they're houses, whether
they're townhouses, or whether their apartments, and the reason we
(08:13):
haven't under supplies because it costs more today than the
market is prepared to pay, cost more to build new dwellings.
So until prices rise, new dwellings aren't going to come
out of the ground, which means we're going to have
an ongoing supply. Developers aren't going to take a risk
if they can't make money.
Speaker 3 (08:29):
You can, no, absolutely not.
Speaker 5 (08:31):
And so mate, as you stood back and look at
the whole thing after it was all announced, and as
you said, the Opposition then came out with their budget
reply was your overall opinion of the budget? Looking again
at it through the lens of housing in Australia, at least.
Speaker 7 (08:46):
They're acknowledging now a housing crisis. It's not a shortage.
It's much more than that. When people can't rent accommodation
where they want to live or where they need to live,
near their work or near their families. And it's more
than just a shortage when people young families are having
difficulty getting in the market. So it's step one. Acknowledge it, now,
(09:08):
come up with some ideas, not just rhetoric.
Speaker 5 (09:11):
Yeah, it's step one of about a thousand steps. So
isn't it, Michael, I agree.
Speaker 2 (09:15):
With that, kem Well fingers cross that we see some
action finally coming to place. But as we all know,
action speaks louder than words, so we'll see when and
if that does happen. Thank yourself was for joining us
this morning.
Speaker 7 (09:25):
Michael, my pleasure. Maybe that was.
Speaker 2 (09:27):
Michael Yarney, the CEO of Metropol, Property Strategist and the
host of the Michael Yardney podcast.
Speaker 3 (09:31):
There split loans.
Speaker 2 (09:33):
Now when banks are talking about them, and when we're
talking about them, you probably usually think about breaking loan,
not paying a percentage is fixed, paying a percentage as variable.
But with these cost of living pressures and you know,
the housing crisis that we're just talking about, with the
budget aspect, banks are apparently starting to see bit of
a growing trend, aren't they can.
Speaker 5 (09:53):
Yeah, absolutely, And when you look at it, for me,
like straight away, warning signs just go up at this.
Speaker 3 (09:59):
But it is a trend that is developing.
Speaker 5 (10:01):
So we thought we'd have a little bit of a
dig into it and say good morning to Yanni Pasios,
director and senior broker at a Spire Lending. Yanni, good
morning and welcome back to the show.
Speaker 6 (10:11):
Thanks for having me good morning.
Speaker 2 (10:13):
Now, what would be a typical example of this sort
of arrangement with split loans?
Speaker 6 (10:18):
Look, we usually see it with younger siblings looking to
get into the property market. Usually they're single, they have
a sort of life partner, so simbling, it's getting into
a property together, helps with borrowing capacity, deposits, so and
and so forth. Sometimes you see it with friends in
the younger years. Usually the siblings is where we see
it a lot.
Speaker 5 (10:37):
Okay, and so, as I said at the start, there
the warning signs just go up everywhere. For me, what
are some of the things that can go wrong with
an arrangement like this?
Speaker 7 (10:48):
I look, the.
Speaker 6 (10:49):
Typical example is when they get a bit older and
find a partner or decide to move away or something else.
It's difficult for one of the other siblings to sort
of buy them out. Capacity is tough. That's the main
thing we see after a few years is just they
sort of grow apart from each other and have to
sort of leave the transaction.
Speaker 2 (11:07):
I feel like going into it with your sibling versus
a friend would be a very different conversation as well.
Do you see the pros and cons of either of those?
Speaker 7 (11:16):
Oh?
Speaker 6 (11:17):
Look, siblings it's a family, I guess, but friends can
go apart as well. So that's that's the big risk factor,
is you know, three four or five years on the track,
you know, past change, people move away, and then it
becomes difficult to sort of break the relationship, especial when
there's a properly the other end of it.
Speaker 5 (11:34):
Yeah, and so is this something money lenders also approach
with much caution or are they just goinge ho, they're
in it's just like okay, let's do it.
Speaker 6 (11:42):
Yeah, now as heaps of caution, like the colon Off
Bank have got a product for it, and some of
the other lenders won't even sort of do it unless
you're going as a sort of co borrel is. But
the general arrangement is you sort of guarantee each other's
debt and a couple of lenders have got specific sort
of products that that sort of stuff.
Speaker 2 (12:00):
Now, if there's anyone listening that is maybe considering doing this,
what's something that they should consider when doing it? If
that makes sense?
Speaker 6 (12:07):
Yeah, what does the next five years look like? Is it?
Are you planning to stick around with that person or
whether it's a sibling or a friend, and that you're
going to sort of go into the arrangement with what
does the next sort of five or ten years look like?
And is there a bit of an exit strategy should
you want to sort of move away from it?
Speaker 2 (12:23):
Yeah, now you mentioned it was usually kind of popular
throughout the younger generation. Where is this different from like
a guaranteur kind of thing that their parents could help
them with.
Speaker 6 (12:33):
Yeah, so parents can help just both sort of giving
gifts or cash sums, but parents can actually put property
up as well so that the younger borrow is don't
have to find a deposit. But this sort of comes
into inker place, you know, with siblings that have got
a bit of a deposit and they want to get
their foot in the door, but you know, doing it
on their own is tough. So guarantees or parental guarantees
(12:58):
work a little bit differently, different concept, but it's easy
to remove the guarantee down the track rather than sort
of move away from the property transaction with friend or whatever.
Speaker 5 (13:09):
And look, I'm going to make a massive general assumption here,
but it's sort of true. I mean, we know and
you mentioned again that it's younger people, and what does
that look like in sort of five years, Tom, I mean,
many people in this generation, not everyone of course, but
they don't know what's happening in five minutes, let alone
five years.
Speaker 6 (13:28):
Yeah, absolutely, so, Yeah, definitely some considerations before entering into it.
But yeah, I always sort of say it was the
next five years, look like how hacking you exit the transaction?
Speaker 4 (13:40):
Yeah, amicably.
Speaker 2 (13:42):
Yeah, I know we're just talking about as mainly kind
of people trying to get into the property market. But
do you see people teaming up in this way as
an investment kind of thing to try and get into
the investment side of property.
Speaker 6 (13:53):
Yeah, absolutely absolutely. And look and sometimes the five years
down the track means they've got some capital growth.
Speaker 4 (13:59):
And they've they've made the right move and.
Speaker 6 (14:01):
They can sort of both you know, leave that transaction
together and then go their own ways. But yeah, definitely
for investing or to live in we see with everything.
Speaker 2 (14:10):
Yeah, well, very interesting, good to see that it is
an option, but just with a few red flags.
Speaker 5 (14:14):
That might be coming with its many many red flags
for me.
Speaker 2 (14:18):
Well, thank you so much for joining us this morning, Yannie,
no problem, have a great day, guys, you do. That
was johny Pazzio's director and senior broker out a Spire
lending well.
Speaker 5 (14:27):
Those are the interviews we most enjoyed in last week's
Mix one O six point three real Estate Show. If
you love hearing about the latest trends, or you're just
up for a sticky beak, be sure to drop by
for a listen this Saturday between nine and ten.
Speaker 1 (14:40):
Canon Rene's Real Estate Show. Sounds like camera, sounds like
mix on a six point three
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