May 30, 2025 • 17 mins
Before you scroll through listings or rock up to another open home—STOP.
In this episode, Oscar Don, Co-Founder of Asset Road, breaks down the real first step in building wealth through property: getting your finance structure right.
Whether you're a first-time buyer or a future portfolio builder, this episode will walk you through:
✅ What lenders actually look at (not what you think)
✅ The five key parts of a strong finance profile
✅ How the wrong loan structure can block future investments
✅ Why working with a mortgage broker aligned with strategy is non-negotiable
✅ The exact steps to take before getting pre-approval
Oscar shares hard-won insights from years in the trenches with investors, brokers, and finance professionals—and shows you how to avoid the mistakes that cost Aussies thousands in lost opportunities.
If you’re serious about building long-term wealth through property, this episode is mandatory listening.
DISCLAIMER:
The information in this podcast is general in nature and does not constitute personal financial advice. It does not take into account your individual objectives, financial situation, or needs. Always consider whether the information is appropriate for you and seek advice from a qualified professional before making financial decisions.
💼 Book a free clarity session: assetroad.com.au
📲 Connect with Oscar on Instagram: @assetroad_
🔍 Check your credit score: Equifax | Credit Savy
🎯 Get started with your property strategy: Email info@assetroad.com.au
#PropertyInvestmentAustralia
#FinanceStrategy
#MortgageTips
#PreApproval
#InvestingInProperty
#RealEstateFinance
#InvestmentPropertyTips
#BrokerVsBank
#AssetRoad
🎧 Enjoyed this episode?
Follow us on Instagram @zekeguenthrothofficial @oscardonproperty and @assetroad for daily insights, property breakdowns, and behind-the-scenes updates.
Explore more at www.assetroad.com.au
Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:14):
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:37):
Let's get into it.
Welcome back for anotherepisode.
Today you are with myself, oscar, and we're going to be tackling
a part of the investmentjourney that's often overlooked.
Generally, if it's overlooked,it's blown up in your face.
So we're talking about finance,not just can I get a loan, but
more about is your loanstructured correctly?
(00:57):
Does it support your owninvestment strategy?
Can it grow with yourself andwhat you're wanting to achieve
and not just get you into yourfirst property?
So, as you know, we at AssetRoad and the Finance Bible we're
more on the property side ofthings and we're not mortgage
brokers, but we work hand inhand with brokers every single
day to make sure clients'finances are set up correctly.
(01:21):
And it doesn't just get the jobdone.
It sets them up to actuallyscale and build an asset base to
reach the ultimate goals offinancial security and building
a large amount of wealth toretire on.
So this episode is about howthat relationship works, what to
get it right early and whatmost investors get completely
(01:41):
wrong.
So if you are planning toinvest this year or you've
already bought a property butyou feel a bit unsure about your
next move which I tell you whatit's very common this episode
is for you.
First part of the episode iswe're going to talk about why
you don't start with theproperty.
Let's get this myth out of theway early.
You don't start your propertyjourney with property.
(02:02):
I know that sounds quite weirdcoming from a property guy, but
hear me out.
A lot of people think investingbegins when they start actually
looking at properties andbrowsing listings and tending
open homes if you're looking foran under-occupier or calling
different real estate agents.
But what if I told you, mostsuccessful portfolios start
(02:22):
months and sometimes yearsbefore properties even on the
radar?
We see people every week whohave jumped into a property
because it might have felt rightor it looks good on paper and
then only to find out later onthat the way that they've
actually funded the purchase hascompletely blocked them from
growing a portfolio and pullingout the equity and going again
(02:44):
and again and again.
Why does that happen?
Because that actual instancethey didn't think about the
impact of the finance structureon their future lending and what
they're actually wanting toachieve down the track.
So I'll give you a roughexample.
So imagine two investors whoare both on the same income,
same deposit level.
(03:05):
One of them buys a $600,000property without a plan, hasn't
spoken to a mortgage broker,hasn't spoken to a team like
Asset Road.
The other individual sets uptheir own lending with a
mortgage broker and looks atprotecting their borrowing
capacity and thinks two stepsahead of what they're wanting to
do down the track.
Fast forward, 12 months later,only one of them can afford to
(03:29):
buy again, and it's not aboutwho had more money, it's about
who had the better plan.
So your borrowing power isfinite, your flexibility is
fragile and unless you know howto leverage the bank's rules in
your favor which a mortgagebroker helps you understand
you'll max yourself out beforeproperty number two and you'll
(03:49):
never be able to move ahead, orif you can, it's going to be a
long way down the track once youbuild a substantial.
That's why the firstconversation we have with our
clients is what are you tryingto achieve, not just now, not
just in 12 months, but fiveyears, 10 years, 20 years, 30
years?
What do you want to achieve foryour family?
(04:10):
How do you want to set them up?
How do you want to structureeverything?
How many properties do you want?
What's your income that youwant, after tax, on an annual
basis when you're not working?
And, yeah, what's the timeline,how long are you giving
yourself and what's yourcapacity right now?
And that's where mortgagebrokers come into it as well
what smart finance prep lookslike.
So we'll dive into the nuts andbolts of this now.
(04:33):
Smart finance prep isn't justabout turning yourself into an
accountant.
It's about understanding whatbanks look at and what brokers
actually need to positionyourself.
Well, there are five key thingsthat come up every single time
in terms of the lenders, whatthey look at when a loan is
(04:54):
lodged and the reason we knowthis.
We work with brokers day in,day out, and this is, yeah,
mainly the five things, andthere can be other things which
do come up.
Might be self-employed whenyou're comparing to someone
who's on a PAYG nine to five job, but these are generally the
main five things, number oneincome and employment type.
(05:16):
So banks love security.
The more stable your income,the safer you look.
If you're a PAYG and a full-timeworker, that is ideal for
getting the lending.
It's a lot easier.
Mainly, what you've just got todo is confirm that you've been
working there for a while, passyour probation period and give
up-to-date pay slips and thenyou're genuinely good to go.
(05:37):
If you're a casual or onprobation, some lenders will say
no, others are more flexible.
This is where mortgage brokerscome into it to identify the
lenders which are more flexible.
If you're in that positionSelf-employed this is where
having a good mortgage brokerreally comes into it, because
you need at least one fullfinancial year of income,
(06:00):
ideally two, depending on thelender.
But even then there are somelenders taking BAS statements or
just using accountant lettersif your business is growing
quickly.
But yeah, you've really got tofind a good broker if you are
self-employed, especially ifyou're self-employed for a
relatively new company, becausethere are ways to do it.
(06:22):
You've just got to be partneredwith the right people.
Number two living expenses andspending patterns.
So lenders don't just ask whatyou spend.
They need to look at it becauseyou could go to them and say
you don't need Uber Eats at all.
You haven't had Uber Eats ordelivery or anything like that
for 12 months.
But then they want to checkyour statements.
Then all of a sudden you mightpurchase a grilled burger every
(06:45):
second day on Uber Eats and allof a sudden you spend 10 grand a
year on Uber Eats.
So from a bank's point of viewthat's a red flag.
But that Uber Eats bill, itdoes matter.
Gambling accounts let's sayyou're on sports bet or betting
on the footy on a Friday orSaturday night.
That matters quite a bit aswell, because if that's a
consistent thing in a largeamount of money, the bank will
(07:07):
think well, I'm not gonna give aloan to this person over here
who's just gambling money away.
And after pay zip, they arealso important line of credit.
All of it paints a picture wealways tell clients live like
you're applying for a loan threemonths before you actually
apply, because that way yourstatements back up your story.
(07:27):
Generally they only look at twoto three months worth of bank
statements.
So if you do find yourselfwanting to get into the property
market but you're late in yourafterpay bills, you're doing
random gambling on a weekend andyou're eating out a lot and
getting delivery.
Well, from this point oflistening to this podcast, halt
(07:48):
doing that for three months andthen look at applying for a loan
in three months with a cleanbank statement, because that's
what they look at.
Another important one.
Number three your credit score.
So your credit score isbasically your financial report
card.
One missed phone bill can dropyou 50 points, believe it or not
.
Too many credit inquiries, suchas applying for credit cards
(08:11):
day in, day out to get thesepoints, that also looks like a
risk in the bank's point of view.
But if you are worried aboutyour credit score, you can check
it online for free.
Top of mind websites CreditSavvy's good, and Equifax.
You can also look it up there.
But if you've got a low scoreor defaults, it's not
necessarily game over, meaningyou can't borrow, but it would
(08:35):
just limit your options.
So the earlier you see it, themore time you have to fix it
before you apply, basically likethe bank statements situation
as well.
Number four existing debt.
This one surprises people themost.
It's not just about how muchdebt you have.
It's how lenders treat the debtthat you have, for example,
(08:58):
that credit card that you neveruse, with a $15,000 bank limit,
banks assume it's maxed out sothat $15,000 is going to go
against your borrowing capacity.
Your car loan $700 per monthout of your budget.
Your personal loan for aholiday two years ago that is
still dragging your borrowingpower down.
(09:19):
You need to look at cleaningthe house of debt first before
you apply, because existing debt, if it's not investment debt,
is yeah, it's, it's a.
It's a bit of a red flag forthe banks.
You just got to kill theunnecessary stuff so your money
is working for you, not againstyou.
(09:39):
Number five you need to showthat you have genuine savings
and good conduct.
So lenders want to see thatyou've saved money over time.
If your deposit came from afamily gift or some crypto, that
is fine, but genuine savingsstill matter.
So they want to see that youprobably you know three, four,
(10:01):
five months of consistentsavings and deposits into your
savings account that they'reable to identify that you are a
good saver.
They want to see consistency.
So no chaos at all, no randomsums every two months or every
four weeks, just randomly hereand there.
So regular transfers.
They want to make sure thatyou're disciplined in your
(10:23):
budgeting and a buffer will help.
So if you need, let's say,$60,000 as a deposit.
Ideally you have 70,000.
So you get a bit of a buffer.
So let's talk aboutpre-approvals In a simple way of
explaining it.
It is basically your greenlight to invest, to buy a
property, to buy thatowner-occupier.
Pre-approval gets talked abouta lot but it's still
(10:46):
misunderstood.
So you should not be makingoffers or bidding at auctions
without a pre-approval.
In my opinion, why?
Pre-approval confirms you'reborrowing a limit.
It protects you from wastingany time.
It gives you the leverage innegotiation.
If you're speaking to an agentand you're bidding against
someone who doesn't have apre-approval, generally it's a
(11:07):
lot better because the bank'salready approved you technically
speaking and in the fast-movingmarket it lets you act
decisively, not reactively,which is very important.
We've had clients in, forexample, perth a year ago and
over in southeast Queenslandliterally win the property that
they want purely because theywere pre-approved and ready to
(11:29):
actually move and everything wasin line.
So they were competing againstother people who weren't
pre-approved and they were stillwaiting to hear back from the
bank.
So that just shows that apre-approval will give you a
bigger edge over yourcompetition, but it's not a
guarantee.
If you're wanting to look at apre-approval.
This is where having a chatwith your mortgage broker is
(11:49):
good, because they'll look ateverything we have spoken about
just before.
They'll look at your expenses,they'll look at your conduct,
they'll look at your creditscore, everything like that, and
then they'll basically pop inwhat your max borrowing capacity
would be.
So let's say, for example,you're wanting to purchase a
property worth $700,000 andyou're wanting to borrow, let's
(12:10):
say, 80% of that.
They will crunch the numbersfor you and then, if you can do
it, they'll come up and say allright, so we can get a
pre-approval for you for a$560,000 loan, which is 80% of
the purchase price that you'rewanting.
And then, once you actually getthe property that you're
looking for and you've got thepre-approval and you put the
(12:30):
offer in, that's where they'llstart actually getting the
remaining documents andeverything in place to get it
formally approved and actuallypush it through for you.
So it gives you an idea of whatyour budget will be as well,
because there's nothing worsethan, let's say, you think
you're pre-approved for $700,000purchase price and you're
looking for those properties andthen all of a sudden you get a
(12:52):
rude shock that you can only goto $600,000.
So you've been wasting all thistime, and especially in the
market at the moment, how quickit is.
With all the interest ratedrops which have happened and
also going to happen even more,you're going to miss the boat.
So definitely get apre-approval.
Speak to your mortgage brokerabout that, because it is
extremely important, believe itor not.
(13:13):
So let's wrap it all up Ifyou're serious about investing
in the next six to 12 months,your job isn't to get lucky's to
get ready.
So here's a quick checklistthat you may need to do if you
are in this boat.
Number one start reviewing yourexpenses.
Set up a spreadsheet or abudgeting app.
(13:34):
There's so many on the appstore and if you're apple not
sure about samsung or whateverit's called these days android,
but I'm sure it's the same there.
Also, if you go on Google, youcan suss it out there's heaps of
different spreadsheets you candownload for free.
You can also check your creditscore, which is point number two
I mentioned before.
You can go on Credit Savvy andEquifax.
(13:55):
Number three start saving orbuilding a buffer, so even small
amounts.
I know with ING Bank and a lotof actually banks, you can do
automated roundups.
So that's what I found in thepast, really easy to use and
actually very handy.
So let's say you spend a coffeeand it's $4.85.
15 of the cents, which is roundup to five bucks, will get
(14:17):
transferred to your savings.
And yes, it's 15 cents, butover time you're going to make a
bit of money in your savingswhich you wouldn't have actually
put in your savings in thefirst place.
So that just helps.
Number four very important chatwith Zeke and myself at Asset
Road.
We can help you map out yourgoals and strategy and, most
(14:39):
importantly, connect you with abroker we trust and who has
record in the past of actuallyhelping clients get
pre-approvals and moving themforward and getting the property
of their dreams or investing inthe property that they want.
To make the money.
They help you align the financewith a plan, which is the most
important factor.
(14:59):
This whole process of these nextsteps in the checklist, this
process will build clarity foryourself which reduces fear, and
fear is what keeps most peopleout of the market, not money,
it's the fear of unknown.
And doing this for quite awhile, we found that there's so
many individuals out there whosay they're going to do it.
(15:21):
Six years later they're stillsaying they're going to do it.
You've just missed out on thesix years worth of growth on a
property that you could have hadIn that time.
If you bought in the correctspot, you could have two, three,
four different properties nowfrom that one investment.
But because you're sitting onthe sidelines and waiting until
(15:42):
the market drops or waitinguntil another day, or you just
keep telling yourself a lie, youare going to miss out on a lot
of opportunities.
So get this checklist done.
If you're serious aboutinvesting, get it sorted out and
speak to the team.
But at the end of the day,property investing isn't just
about freedom.
It's about giving yourselfoptions, choices, control over
(16:05):
your time but, most importantly,in my opinion, your own future.
But freedom doesn't come fromjust winning it.
It comes from structure,guidance and from getting the
finance part right before youget emotional about a deal.
Because a lot of people myselfincluded before you find a
(16:27):
property you like and you getall emotional about it and then
you miss out on it and you'rebummed, you're upset, you're not
happy about it, you don't wantto buy another one, you keep
thinking about it.
So get the finance part rightand then, if you really want to,
you can get emotional, but ifyou're investing, get the
emotions aside.
So if you are ready to stepinto the game seriously, I've
(16:49):
popped a link in the show notesbelow or visit our website
assetrowcomau.
Book a call.
We'll have a conversation.
Get the finance sorted first ifyou are serious, because
without the finance, I hate tosay it you might continue to
lose out.
But until next time.
We hope you enjoyed the episode.
As always, you know exactlywhat to listen.
But until next time, ciao.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
(17:10):
Hit that follow button,subscribe, whatever platform you
listen to this podcast on.
Also share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately it's the endand we will see you next week.
Welcome back to another episode of the Finance
Bible Podcast.
Zeke here and your co-host,oscar.
But before we get into it,please note that nothing in this
podcast should ever beconsidered as personal financial
advice.
Of course, if that is what youare seeking, reach out.
We'll get you in touch with thecorrect professionals.
Get the job done properly, sitback, relax and enjoy the show.
(00:37):
Let's get into it.
Welcome back for anotherepisode.
Today you are with myself, oscar, and we're going to be tackling
a part of the investmentjourney that's often overlooked.
Generally, if it's overlooked,it's blown up in your face.
So we're talking about finance,not just can I get a loan, but
more about is your loanstructured correctly?
(00:57):
Does it support your owninvestment strategy?
Can it grow with yourself andwhat you're wanting to achieve
and not just get you into yourfirst property?
So, as you know, we at AssetRoad and the Finance Bible we're
more on the property side ofthings and we're not mortgage
brokers, but we work hand inhand with brokers every single
day to make sure clients'finances are set up correctly.
(01:21):
And it doesn't just get the jobdone.
It sets them up to actuallyscale and build an asset base to
reach the ultimate goals offinancial security and building
a large amount of wealth toretire on.
So this episode is about howthat relationship works, what to
get it right early and whatmost investors get completely
(01:41):
wrong.
So if you are planning toinvest this year or you've
already bought a property butyou feel a bit unsure about your
next move which I tell you whatit's very common this episode
is for you.
First part of the episode iswe're going to talk about why
you don't start with theproperty.
Let's get this myth out of theway early.
You don't start your propertyjourney with property.
(02:02):
I know that sounds quite weirdcoming from a property guy, but
hear me out.
A lot of people think investingbegins when they start actually
looking at properties andbrowsing listings and tending
open homes if you're looking foran under-occupier or calling
different real estate agents.
But what if I told you, mostsuccessful portfolios start
(02:22):
months and sometimes yearsbefore properties even on the
radar?
We see people every week whohave jumped into a property
because it might have felt rightor it looks good on paper and
then only to find out later onthat the way that they've
actually funded the purchase hascompletely blocked them from
growing a portfolio and pullingout the equity and going again
(02:44):
and again and again.
Why does that happen?
Because that actual instancethey didn't think about the
impact of the finance structureon their future lending and what
they're actually wanting toachieve down the track.
So I'll give you a roughexample.
So imagine two investors whoare both on the same income,
same deposit level.
(03:05):
One of them buys a $600,000property without a plan, hasn't
spoken to a mortgage broker,hasn't spoken to a team like
Asset Road.
The other individual sets uptheir own lending with a
mortgage broker and looks atprotecting their borrowing
capacity and thinks two stepsahead of what they're wanting to
do down the track.
Fast forward, 12 months later,only one of them can afford to
(03:29):
buy again, and it's not aboutwho had more money, it's about
who had the better plan.
So your borrowing power isfinite, your flexibility is
fragile and unless you know howto leverage the bank's rules in
your favor which a mortgagebroker helps you understand
you'll max yourself out beforeproperty number two and you'll
(03:49):
never be able to move ahead, orif you can, it's going to be a
long way down the track once youbuild a substantial.
That's why the firstconversation we have with our
clients is what are you tryingto achieve, not just now, not
just in 12 months, but fiveyears, 10 years, 20 years, 30
years?
What do you want to achieve foryour family?
(04:10):
How do you want to set them up?
How do you want to structureeverything?
How many properties do you want?
What's your income that youwant, after tax, on an annual
basis when you're not working?
And, yeah, what's the timeline,how long are you giving
yourself and what's yourcapacity right now?
And that's where mortgagebrokers come into it as well
what smart finance prep lookslike.
So we'll dive into the nuts andbolts of this now.
(04:33):
Smart finance prep isn't justabout turning yourself into an
accountant.
It's about understanding whatbanks look at and what brokers
actually need to positionyourself.
Well, there are five key thingsthat come up every single time
in terms of the lenders, whatthey look at when a loan is
(04:54):
lodged and the reason we knowthis.
We work with brokers day in,day out, and this is, yeah,
mainly the five things, andthere can be other things which
do come up.
Might be self-employed whenyou're comparing to someone
who's on a PAYG nine to five job, but these are generally the
main five things, number oneincome and employment type.
(05:16):
So banks love security.
The more stable your income,the safer you look.
If you're a PAYG and a full-timeworker, that is ideal for
getting the lending.
It's a lot easier.
Mainly, what you've just got todo is confirm that you've been
working there for a while, passyour probation period and give
up-to-date pay slips and thenyou're genuinely good to go.
(05:37):
If you're a casual or onprobation, some lenders will say
no, others are more flexible.
This is where mortgage brokerscome into it to identify the
lenders which are more flexible.
If you're in that positionSelf-employed this is where
having a good mortgage brokerreally comes into it, because
you need at least one fullfinancial year of income,
(06:00):
ideally two, depending on thelender.
But even then there are somelenders taking BAS statements or
just using accountant lettersif your business is growing
quickly.
But yeah, you've really got tofind a good broker if you are
self-employed, especially ifyou're self-employed for a
relatively new company, becausethere are ways to do it.
(06:22):
You've just got to be partneredwith the right people.
Number two living expenses andspending patterns.
So lenders don't just ask whatyou spend.
They need to look at it becauseyou could go to them and say
you don't need Uber Eats at all.
You haven't had Uber Eats ordelivery or anything like that
for 12 months.
But then they want to checkyour statements.
Then all of a sudden you mightpurchase a grilled burger every
(06:45):
second day on Uber Eats and allof a sudden you spend 10 grand a
year on Uber Eats.
So from a bank's point of viewthat's a red flag.
But that Uber Eats bill, itdoes matter.
Gambling accounts let's sayyou're on sports bet or betting
on the footy on a Friday orSaturday night.
That matters quite a bit aswell, because if that's a
consistent thing in a largeamount of money, the bank will
(07:07):
think well, I'm not gonna give aloan to this person over here
who's just gambling money away.
And after pay zip, they arealso important line of credit.
All of it paints a picture wealways tell clients live like
you're applying for a loan threemonths before you actually
apply, because that way yourstatements back up your story.
(07:27):
Generally they only look at twoto three months worth of bank
statements.
So if you do find yourselfwanting to get into the property
market but you're late in yourafterpay bills, you're doing
random gambling on a weekend andyou're eating out a lot and
getting delivery.
Well, from this point oflistening to this podcast, halt
(07:48):
doing that for three months andthen look at applying for a loan
in three months with a cleanbank statement, because that's
what they look at.
Another important one.
Number three your credit score.
So your credit score isbasically your financial report
card.
One missed phone bill can dropyou 50 points, believe it or not
.
Too many credit inquiries, suchas applying for credit cards
(08:11):
day in, day out to get thesepoints, that also looks like a
risk in the bank's point of view.
But if you are worried aboutyour credit score, you can check
it online for free.
Top of mind websites CreditSavvy's good, and Equifax.
You can also look it up there.
But if you've got a low scoreor defaults, it's not
necessarily game over, meaningyou can't borrow, but it would
(08:35):
just limit your options.
So the earlier you see it, themore time you have to fix it
before you apply, basically likethe bank statements situation
as well.
Number four existing debt.
This one surprises people themost.
It's not just about how muchdebt you have.
It's how lenders treat the debtthat you have, for example,
(08:58):
that credit card that you neveruse, with a $15,000 bank limit,
banks assume it's maxed out sothat $15,000 is going to go
against your borrowing capacity.
Your car loan $700 per monthout of your budget.
Your personal loan for aholiday two years ago that is
still dragging your borrowingpower down.
(09:19):
You need to look at cleaningthe house of debt first before
you apply, because existing debt, if it's not investment debt,
is yeah, it's, it's a.
It's a bit of a red flag forthe banks.
You just got to kill theunnecessary stuff so your money
is working for you, not againstyou.
(09:39):
Number five you need to showthat you have genuine savings
and good conduct.
So lenders want to see thatyou've saved money over time.
If your deposit came from afamily gift or some crypto, that
is fine, but genuine savingsstill matter.
So they want to see that youprobably you know three, four,
(10:01):
five months of consistentsavings and deposits into your
savings account that they'reable to identify that you are a
good saver.
They want to see consistency.
So no chaos at all, no randomsums every two months or every
four weeks, just randomly hereand there.
So regular transfers.
They want to make sure thatyou're disciplined in your
(10:23):
budgeting and a buffer will help.
So if you need, let's say,$60,000 as a deposit.
Ideally you have 70,000.
So you get a bit of a buffer.
So let's talk aboutpre-approvals In a simple way of
explaining it.
It is basically your greenlight to invest, to buy a
property, to buy thatowner-occupier.
Pre-approval gets talked abouta lot but it's still
(10:46):
misunderstood.
So you should not be makingoffers or bidding at auctions
without a pre-approval.
In my opinion, why?
Pre-approval confirms you'reborrowing a limit.
It protects you from wastingany time.
It gives you the leverage innegotiation.
If you're speaking to an agentand you're bidding against
someone who doesn't have apre-approval, generally it's a
(11:07):
lot better because the bank'salready approved you technically
speaking and in the fast-movingmarket it lets you act
decisively, not reactively,which is very important.
We've had clients in, forexample, perth a year ago and
over in southeast Queenslandliterally win the property that
they want purely because theywere pre-approved and ready to
(11:29):
actually move and everything wasin line.
So they were competing againstother people who weren't
pre-approved and they were stillwaiting to hear back from the
bank.
So that just shows that apre-approval will give you a
bigger edge over yourcompetition, but it's not a
guarantee.
If you're wanting to look at apre-approval.
This is where having a chatwith your mortgage broker is
(11:49):
good, because they'll look ateverything we have spoken about
just before.
They'll look at your expenses,they'll look at your conduct,
they'll look at your creditscore, everything like that, and
then they'll basically pop inwhat your max borrowing capacity
would be.
So let's say, for example,you're wanting to purchase a
property worth $700,000 andyou're wanting to borrow, let's
(12:10):
say, 80% of that.
They will crunch the numbersfor you and then, if you can do
it, they'll come up and say allright, so we can get a
pre-approval for you for a$560,000 loan, which is 80% of
the purchase price that you'rewanting.
And then, once you actually getthe property that you're
looking for and you've got thepre-approval and you put the
(12:30):
offer in, that's where they'llstart actually getting the
remaining documents andeverything in place to get it
formally approved and actuallypush it through for you.
So it gives you an idea of whatyour budget will be as well,
because there's nothing worsethan, let's say, you think
you're pre-approved for $700,000purchase price and you're
looking for those properties andthen all of a sudden you get a
(12:52):
rude shock that you can only goto $600,000.
So you've been wasting all thistime, and especially in the
market at the moment, how quickit is.
With all the interest ratedrops which have happened and
also going to happen even more,you're going to miss the boat.
So definitely get apre-approval.
Speak to your mortgage brokerabout that, because it is
extremely important, believe itor not.
(13:13):
So let's wrap it all up Ifyou're serious about investing
in the next six to 12 months,your job isn't to get lucky's to
get ready.
So here's a quick checklistthat you may need to do if you
are in this boat.
Number one start reviewing yourexpenses.
Set up a spreadsheet or abudgeting app.
(13:34):
There's so many on the appstore and if you're apple not
sure about samsung or whateverit's called these days android,
but I'm sure it's the same there.
Also, if you go on Google, youcan suss it out there's heaps of
different spreadsheets you candownload for free.
You can also check your creditscore, which is point number two
I mentioned before.
You can go on Credit Savvy andEquifax.
(13:55):
Number three start saving orbuilding a buffer, so even small
amounts.
I know with ING Bank and a lotof actually banks, you can do
automated roundups.
So that's what I found in thepast, really easy to use and
actually very handy.
So let's say you spend a coffeeand it's $4.85.
15 of the cents, which is roundup to five bucks, will get
(14:17):
transferred to your savings.
And yes, it's 15 cents, butover time you're going to make a
bit of money in your savingswhich you wouldn't have actually
put in your savings in thefirst place.
So that just helps.
Number four very important chatwith Zeke and myself at Asset
Road.
We can help you map out yourgoals and strategy and, most
(14:39):
importantly, connect you with abroker we trust and who has
record in the past of actuallyhelping clients get
pre-approvals and moving themforward and getting the property
of their dreams or investing inthe property that they want.
To make the money.
They help you align the financewith a plan, which is the most
important factor.
(14:59):
This whole process of these nextsteps in the checklist, this
process will build clarity foryourself which reduces fear, and
fear is what keeps most peopleout of the market, not money,
it's the fear of unknown.
And doing this for quite awhile, we found that there's so
many individuals out there whosay they're going to do it.
(15:21):
Six years later they're stillsaying they're going to do it.
You've just missed out on thesix years worth of growth on a
property that you could have hadIn that time.
If you bought in the correctspot, you could have two, three,
four different properties nowfrom that one investment.
But because you're sitting onthe sidelines and waiting until
(15:42):
the market drops or waitinguntil another day, or you just
keep telling yourself a lie, youare going to miss out on a lot
of opportunities.
So get this checklist done.
If you're serious aboutinvesting, get it sorted out and
speak to the team.
But at the end of the day,property investing isn't just
about freedom.
It's about giving yourselfoptions, choices, control over
(16:05):
your time but, most importantly,in my opinion, your own future.
But freedom doesn't come fromjust winning it.
It comes from structure,guidance and from getting the
finance part right before youget emotional about a deal.
Because a lot of people myselfincluded before you find a
(16:27):
property you like and you getall emotional about it and then
you miss out on it and you'rebummed, you're upset, you're not
happy about it, you don't wantto buy another one, you keep
thinking about it.
So get the finance part rightand then, if you really want to,
you can get emotional, but ifyou're investing, get the
emotions aside.
So if you are ready to stepinto the game seriously, I've
(16:49):
popped a link in the show notesbelow or visit our website
assetrowcomau.
Book a call.
We'll have a conversation.
Get the finance sorted first ifyou are serious, because
without the finance, I hate tosay it you might continue to
lose out.
But until next time.
We hope you enjoyed the episode.
As always, you know exactlywhat to listen.
But until next time, ciao.
We hope you enjoyed the episode.
As always, you know exactlywhat to do.
(17:10):
Hit that follow button,subscribe, whatever platform you
listen to this podcast on.
Also share it to friends,families, co-workers, whoever
you think may benefit from it.
But unfortunately it's the endand we will see you next week.
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