December 4, 2024 • 25 mins
Welcome It's Simple broker, Anthony Fontana, to the Finance Show with Joe!
Tackling today's challenging homeownership landscape, we explore how the "Bank of Mum and Dad" is reshaping the property market. Discover strategic financial solutions like guarantor loans and the First Home Guarantee that are helping families overcome housing affordability issues. With expert advice on navigating lending options from institutions like First Mac and Macquarie, we underscore the importance of diverse financial planning and consultation.
We wrap up with a focus on the benefits of starting early in property investment. Learn how time in the market can lead to significant growth and how regions like Newcastle and Adelaide offer promising opportunities. Anthony shares his advice for maximizing borrowing capacity through investment properties, while parents and young adults gain practical tips for leveraging support and building solid financial habits.
Follow us for more property news and mortgage advice!
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DISCLAIMER This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmowho's about to lose his job, and
we have a very special guest,anthony.
Speaker 2 (00:11):
Anthony, thank you so much for coming on the show
today.
Just a brief introduction toAnthony.
Anthony used to be an underwearmodel for Calvin Klein and then
he decided, rather than pursuea career in modeling, which you
know is affected by age andstuff, anthony decided to get
married and, you know, settledown, become a broker.
It was just.
It's been a bit of a journey,but thanks for coming on, mate.
Speaker 3 (00:33):
thank you, thank you for having me.
It's, uh, yeah, greataustralian dream, isn't it to
just?
Speaker 2 (00:37):
keep working and being on this podcast all 15 of
our viewers would love to seethat smile on camera.
So tell us a little bit,Anthony.
You've been a broker for thelast 10 years prior to coming on
with it's Simple, Is that?
Speaker 3 (00:52):
correct.
Yeah, that's correct.
I started in finance about 12years ago.
It was mainly like a part-timething.
I was still working andlearning the skill behind the
scenes as well, and then, youknow, trying to get clients on
board.
I guess why I've made the jump.
I pretty much was a sole brokerfor a long time and I then
(01:12):
actually had a meeting with aBDM and he said if you want to
join the Premier League, youhave to join the big leagues.
And it was kind of a moment forme where I was like, okay, this
guy just said you've got toswitch on and jump.
I'm a big believer in gettingout of your comfort zone as well
to grow, like you don't havecold showers because you enjoy
(01:34):
them, right.
So that was like I needed tochange things up and see how
other brokers are doing it and Iwanted to become part of a team
that was growing.
And that's when I made a call.
I had a few other meetings aswell, but I made a call and
Michael actually said one of theother brokers had left and they
were.
You guys were looking, saidokay, come out and see.
See what's what it's all about.
Speaker 2 (01:55):
It's simple and working within a team as opposed
to being a sole broker, you doget to experience that support,
that camaraderie, the jokes, butalso I think there's a bit of
there's a lot more opportunity,because if someone doesn't know
how to structure a deal, that'swhen you can kind of come in and
create that opportunity foranother broker.
(02:16):
Would you say that?
Speaker 3 (02:17):
I 100% agree.
I think, like you get to seehow other brokers workshop
things, when you're by yourself,you're stuck in a certain way
that you think, okay, this ishow I should run the business.
But when you see it from a teamof other people and you've got
that support, that's when youcan really like, grow and thrive
.
So that's where I see myself,um, in this space going because
(02:37):
you've got that support from theother brokers as well so what
have you noticed over the last,you know, four months since
you've jumped on board with?
Speaker 2 (02:44):
It's Simple.
Speaker 3 (02:44):
Like what are the key ?
There has been deals that Ihaven't seen before coming
across for sure, which is good,because that's how you learn,
but just the speed at which wework at as well, like I got that
the first day, I was like, okay, you just need to like get
stuff done, which I'm a bigbeliever in, you know, so it
just all aligned I do want toshare this story because anthony
(03:06):
was sitting next to me duringthis meeting, if you remember.
Speaker 2 (03:09):
Yeah, um, we went out and we saw a referral partner
of ours.
Yeah, went out to a lunch andthis this is sort of the kind of
opportunity that gets presented, you know.
So we sat across from thisaccountant.
Could you just say the story,because I think it's one of the
funniest stories of my life.
Speaker 3 (03:25):
We were just sitting there.
It was the first time we metthis guy.
Lunch was going great, but hewas just so straight to the
point.
He was like do you want a $50million deal?
I kid you not.
And Joey was just like yeah,Are you going to say?
No to it that was like firstpretty much referral meeting
that we went to.
I was like, okay, you'retalking some big numbers and
(03:47):
you're talking to the rightreferral partners, so you don't
always get those opportunities.
Speaker 2 (03:52):
This is why you kind of need to take every
opportunity that's at your feet,regardless of the loan size.
It's never the deal in front,it's always the deal behind,
right?
So a previous client of ourshad introduced us to this
accountant because it was hisaccountant.
A previous client of ours hadintroduced us to this accountant
because it was his accountant.
And this previous client, youknow the loan size, was a
regular mom and dad's loan size.
Okay, I'm not going to say whatit was, but it was a regular
(04:14):
mom and dad's loan size.
One property, another property,another property, you know three
properties, a cumulative.
You know it was low, sevenfigures, but it wasn't you know
a huge amount.
And he's a good friend of mine,he's around, same age group,
and he just turns around.
He goes to us you have to meetmy accountant, and I go, okay,
I'm like I'm more than happy to.
And he goes, no, no, you haveto.
(04:35):
Like we're going to lunch thisfriday.
I'm like, okay, can I bring abroker that's what I called
anthony up.
And I still remember sittingacross from this guy.
And here I am with my littlereferral partner guy just ready
to give it up and be like it'slike I fucking want it.
I was like okay, it's likedon't fucking put it near me.
I'm like, okay, because youwant a 50 million deal, I'll go.
What?
(04:55):
And he goes, do you want?
And the reason why I was soconfused by it is because how
rare are those opportunitieslike I've never seen anything
like it.
Speaker 3 (05:06):
I was like like at first we actually thought was he
taking the piss?
Speaker 2 (05:10):
I still think he's taking the piss.
Speaker 3 (05:13):
He's got the middle finger and I'm like I don't know
.
He was being dead set and, likeyou could tell, like after that
.
Speaker 2 (05:18):
Yeah, so that's been a very fruitful relationship.
So give us a little bit ofchime into your day-to-day and
where you've helped individualsover the last few months.
Speaker 3 (05:30):
Yeah, leading back to kind of like those
opportunities are great.
I want to be able to deal withlike high net worth clients as
well, but a big part of mecoming to it's Simple as well is
because there was a bigpresence out at Orem Park and
you know that's a real communityfeeling real like mum and dad
vibe out there and I've justbecome a parent as well,
congratulations.
Speaker 2 (05:50):
Thank you.
Speaker 3 (05:50):
How is little Hugo?
He's doing really well.
He's so happy.
Every day he's growing and just, yeah, more and more active.
So it's so good to see.
But that's like now.
You know the reason you doeverything.
And my biggest responsibilityand I guess, leading into the
episode about mums and dads andbank of mum and dad, that's a
(06:11):
big responsibility of mine tomake sure that he's well looked
after in the future and the kindof clientele that we're dealing
with.
I wanted to have a big presenceat Orem Parkway because I'm
moving further out to Camden, sofor me that's a really big
thing.
Speaker 2 (06:27):
Family- it's more common, like you're mentioning
Bank of Mum and Dad you'rementioning, you know it's more
common than ever to get a loanfrom your parents or a gift from
your parents to be able toafford a deposit now?
Speaker 3 (06:37):
Yeah, 100%.
We do a lot of guarantor loans.
You know how mum and dad helpdoesn't always need to be with
this massive gift, but you knowum how mom and dad help.
It doesn't always need to bewith this massive gift.
But you know that that doeshelp.
But there's so we're justseeing a lot more lately where
they might not be purchasingtheir own ARC but they might be
(06:58):
purchasing an investment neartheir parents so that in the
future that's where they'regoing to reside.
So there's a lot of strategicways you can do it, but it does
take a bit of planning.
These days it's not maybe.
Okay, I want to live fiveminutes from mum and dad, and
that's it.
My dad, when he first came outto Western Sydney, he had to
move 20 minutes out, you know,and that's just how it was.
(07:21):
But it kind of is an evolvinglandscape where, yeah, you might
have to move out a little bitfurther, but there are ways to
do it.
Speaker 2 (07:31):
So why do you think it is that kids need to go to
their parents for these deposits?
Why do you think that they needto ask their parents?
Hey, can you go?
Guarantor for me.
Speaker 1 (07:39):
Yeah.
Speaker 2 (07:39):
Is always here.
You know, there's always somerandom politician that goes oh,
you know, rent, save and thenyou can buy.
Oh, you're spending too muchmoney on what was it?
Avocado, avocado on toast.
Speaker 3 (07:50):
Avocado on toast.
You can cut your avocado ontoast out, but really you can't
save as quick as property hasbeen going up.
So that's why you need your helpfrom your mum and dad.
Truly, it just escapes youbecause you think, okay, how can
I save?
And then you do your budget andyou're like, okay, next year
(08:11):
I'll be able to afford it.
Then you go back into themarket and you're like, okay,
it's moved when you can.
That's why it's important tocrunch your figures and speak to
a broker, because you can planfor the long term and then see
where your parents are at why isit important to speak to a
broker?
because you might just go toyour lender that you've been.
You know what I remember as akid, going to cba having your,
(08:34):
your little deposit yeah andlike, but like, that's how they
got everyone in.
You know, and it's like youthink okay, my homeland, my home
loan is going to be with CBA.
What if CBA says no, then whereare you going to go?
Brokers have a whole list oflenders on their panel and there
might be a 1% buffer somewhere.
There might be a 2% buffersomewhere else that you can
(08:57):
borrow a lot more.
So it makes sense that if youcan get into that property and
hold it, then you need toexplore your options.
Speaker 2 (09:06):
Tell me a little bit about the different lenders.
Speaker 3 (09:08):
So I just want to do a comparison right now.
Speaker 2 (09:09):
So let's take a lender like First Mac and then
let's take a lender likeMacquarie.
They might offer the sameinterest rate, they might both
be at 6.14% or 6.09% orsomething along the lines of
that, but what is the differencein the borrowing capacity
between those two lenders?
Speaker 3 (09:26):
It can be huge.
I've had clients even recently.
They can't purchase a secondproperty with your mainstream
lenders, but then we take themto First Mac and they're able to
afford a property because theyassess income a little bit
different.
The buffer on existing debt issmaller.
Their assessment rate issmaller compared to a 3% buffer,
(09:49):
for your normal bank as well.
So all those things might seemsmall, but they add up and then
it can be the difference between$300,000, $400 000, 400 000
sometimes.
Speaker 2 (10:01):
I did a loan recently , I think it was a 1.5 million
dollar deal at saint george.
If they were to go for thisloan, they would be out of
pocket, like that means they'dbe bankrupt, obviously, but they
would be negative.
I think it was negative 300 000or something like that.
Okay, yeah, but for some reason, at first mac, they fit and you
listed the reasons why they'vegot a two percent buffer.
Right, yeah, they account forthe negative gearing and they
(10:25):
also make sure that you know, uh, they, I think it's an 80 of
the rental income, but theydon't factor in you know, nine
million different expenses.
That might not be the expenselevel of another lender.
Speaker 3 (10:37):
Very true, Like even like people purchasing their
first property.
They tend to maybe go for astrata build you know, it could
be a unit, could be a townhouse.
Some lenders treat strata andobviously that's within their
expense, their normal HEMexpense, but others exclude it.
So your borrowing capacity canchange dramatically there as
(11:00):
well.
Speaker 2 (11:00):
It gets smashed out.
Speaker 3 (11:01):
That's literally just for a strata complex.
So that's where it's affordablefor some first home buyers as
well.
So that's why it's importantreally to speak to brokers so
they can assess all that.
Speaker 2 (11:11):
So take me back to using the majors and then
possibly, let's say we don'thave bank of mom and dad let's
say somebody is using the firsttime guarantee.
Yeah, now we've been exposed tothe first-time guarantee quite
a bit, especially over the lastfew months.
You know first-time buyerswanting to come in A few years
ago.
The way that we would calculatesomeone's income is $100,000,
(11:32):
you know they would probably beable to borrow seven times what
their income is.
That's now dropped to about 4.3to 5.
So if you're earning 100K, themaximum you're going to be able
to borrow from NAB, cba, anz, ifyou've got HECS debt or if you
don't have HECS debt, it'sprobably going to be about 500K.
What can you buy in Sydney for500K?
Speaker 1 (11:53):
Well, you can't or call Logic Data.
There's no Sydney suburbs wherean average income owner can buy
without a guarantor Sydneysuburbs where an average income
owner can buy without aguarantor, without the bank of
mom and dad?
Speaker 2 (12:03):
Really there's literally no suburbs.
Speaker 1 (12:04):
There's no suburbs that you could buy, not with an
average income.
Speaker 2 (12:07):
Not with an average income.
Speaker 1 (12:07):
No.
Speaker 3 (12:08):
Yeah, that's a wild stat.
Like, the average earner can't,in their suburb, afford any.
Speaker 1 (12:14):
So it's, even with dual incomes, like I think, if a
couple, yeah, a dual averageincome couple, will still be
short, 270k that is.
So what are you supposed to?
Terrifying, yeah what are?
You supposed to do?
You have to ask your parentsyeah.
Speaker 2 (12:28):
So when you're structuring these types of loans
, you know with the parents, oryou know you're structuring it
with the borrowers, theindividuals themselves.
How are you explaining to themthat, hey, you what?
You really can't do this onyour own.
You need family support.
Speaker 3 (12:43):
Once we're crunching those figures and we've explored
all options and they might notbe able to have any other avenue
.
That's when we have to say isthere any way you can get a gift
?
Or, if your parent how's theirproperty looking, if we can use
their property as security soyou don't have to pay additional
fees and things like that?
(13:03):
But it's always an importantconversation to have.
It's just a really hardlandscape at the moment with how
interest rates are and propertyprices.
They didn't really drop toomuch in that COVID period to
make a difference.
Speaker 2 (13:17):
It's only just started to drop.
Speaker 1 (13:18):
Yeah, and only very slightly.
Speaker 2 (13:21):
This is the thing I post it on my Instagram stories
every week Chester Hill, patstow, anything in the Bankstown,
south West Sydney, canterburyCouncil area it's still booming.
We saw a house in Patstow theother day.
They bought it in 2019 for$900,000 and they have not done
(13:43):
a renovation nothing and theysold it two weeks ago for $1.6
million.
And that's just because of theway that they've changed the
development laws in that area.
And you know we always mentionCDC, the way that you can get
private certified to come in andassist you in building a duplex
.
All those areas are booming.
Come in and assist you inbuilding a duplex.
Yeah, all those areas arebooming.
(14:03):
And I just want to come back toOran Park, and that's a part of
Western Sydney.
Yeah, oran Park's growing likecrazy.
Speaker 3 (14:08):
Yeah, it's crazy how much development has gone out
that way and like it's reallygood for the area and it really
brings everyone like to.
I think because with COVID aswell, people were like, okay,
maybe I can do like a work fromhome, split or whatever.
So that way it's moved all theinfrastructure out that way and
people have the flexibility tobe able to look at those areas
(14:31):
and set their family up and seethem staying there for a long
time because they've goteverything around.
Speaker 2 (14:37):
I want to bring up one valuation that Ali Ali, I
was about to call him by mywife's name.
Do you want to be my wife?
No, I'm just kidding.
One valuation we did recentlyand it was for an apartment in
Orem Park.
Yeah, Do you remember how muchthey purchased that property?
Speaker 3 (14:53):
for it was 550, wasn't it?
Or just over 550.
Speaker 2 (14:58):
And what did the recent valuation come back?
Speaker 3 (14:59):
This is two years, yeah, two years.
735, we got it.
Speaker 2 (15:04):
That is a 27% growth on an apartment on a strata
complex.
So even areas like that arestill growing, and if you're a
mom and dad or if you're a younginvestor looking to tap into
the potential of Sydney, thereis still a lot of opportunity
out there, definitely, yeah.
So where are your favouriteareas right now?
Speaker 1 (15:27):
Caught him off guard.
Speaker 3 (15:28):
Well, I'm moving out the west, I'm going to Camden,
so like that's just for me.
You got a bit of like more landand there's new schools, new,
like new.
Everything is going out thatway.
So that's how, like when wecame out to the west, I was very
much brought up in that kind ofarea where everything was brand
(15:52):
new.
So I thought I kind of want thesame for my kid as well.
So, yeah, we're kind of we'regoing out that way and that's
where I want to be.
Speaker 2 (16:01):
They had a statistic the other day the camden lga, so
I know lga is a naughty wordbecause we all remember it from
um covid I was like why is it anaughty word?
Speaker 1 (16:12):
what have I missed?
I just, I just remember, likelgas, and then everybody in
bondi is partying.
Speaker 2 (16:16):
And then there was helicopters flying over paramata
and I was like yeah, somethingain't right here.
Speaker 3 (16:22):
The math ain't mathin'.
Speaker 2 (16:23):
But, the Camden LGA is actually the fastest growing.
Speaker 1 (16:25):
LGA in Sydney.
I believe that my cousins livethere and I drive there pretty
regularly.
Speaker 2 (16:32):
You drive from Quakers Hill to Camden.
Speaker 1 (16:35):
Yeah, how long does that take you About 40 minutes,
45 minutes and that's the thingthat we've got to bring up about
Western Sydney.
Speaker 2 (16:41):
They're investing.
I've got no infrastructure.
No, I've got no metro.
I don't have no tunnel.
I don't have any highways beingbuilt.
All I've got is NIMBYs in mybackyard, not in my backyard,
not in my backyard, not in mybackyard, that's it.
They do not give a single shit.
Oh, a national park there?
Too bad, you can't build atrain line Like.
There's just so many things,lost opportunities in the
(17:04):
southwest portion of Sydney, butwhere you guys are kind of
situated because there's so muchspace, so much development,
there's actual opportunity there.
Yeah, I still remember when EdSquare was being built, my
brother-in-law and I drovethrough it and all I could think
to myself was I don't knowabout this area, I don't know if
it's going to do well, it isthe most booming area.
You go there at night.
Speaker 3 (17:24):
You know for one of the restaurants about, yeah,
like there's so much life goingon, yes, food everywhere, so
people want to like be aroundthat you know.
So they're bringing differenthubs out there and um, that just
, yeah, brings that culture andum, yeah, people were happy to
to spend a little bit extra andand, look, it's really I think
everyone's kind of that goes outwest or is accustomed to
(17:46):
driving a little bit as well,yeah, you got it right.
Speaker 2 (17:50):
You got it.
Coming back to the originaltopic, the bank of mum and dad.
Yeah, okay, which banks I wantto say are assisting the most
right now when it comes toguarantor loans or the
first-home guarantee?
Speaker 3 (18:01):
Yeah, so you've got your majors and we do a lot of
guarantor loans with likeWestpac CBA.
But and there's, we do a lot ofguarantor loans with like
Westpac CBA, but actuallythere's a stat 60% of all
applicants, first home buyers,are getting help from mum and
dad.
You know it's a growing theme.
You're not alone if you feellike you need to get help from
mum and dad or like there arethe government schemes that are
(18:23):
trying to help as well.
So there are heaps of options.
But yeah, you're not reallyrefined to like 30 lenders if
you think you need to get helpfrom mum and dad or whatnot.
Speaker 2 (18:35):
But one thing I do want to bring up about the
guarantor loans.
Speaker 3 (18:38):
Yeah.
Speaker 2 (18:38):
It doesn't need to be owner occupied, does it?
Speaker 3 (18:40):
No, it doesn't.
It doesn't.
It can be an investment and itcan be your parents' investment
property as well, so there areso many options really to cover
the security aspect of it.
Speaker 2 (18:49):
What's the difference ?
If somebody wanted to buy aninvestment as their first
property as opposed to anowner-occupied property, how
much more could they borrow?
Speaker 3 (18:57):
potentially.
Look, it makes a substantialdifference because we can factor
in the rental income, which isa big help.
Then there's negative gearingand all of that.
So you'd be surprised, like Ihad an applicant that I told him
sorry, your borrowing capacityis 400k.
Again he was like what am Igoing to do with 400k?
I said no, well, if you buy aninvestment property, he was up
(19:19):
750 and with his deposit he wasup over 800k.
It nearly doubled, yeah, youknow, and um, that's massive.
That opens up so many differentavenues to buying property.
And then the leverage that youcan do with to get the gain on
400 versus the gain on 800, it'sgonna propel your, your wealth
(19:39):
so, like when you're buying for400 000, you're buying a studio
yeah studio or one battle yeah,you look, you can go interstate
as well.
Yeah, if it's investment, butbut when?
Speaker 2 (19:48):
you're buying for 800k, you're you're probably
getting a block of land and ahouse.
Speaker 3 (19:52):
Exactly, yeah.
So markets open up so much.
They ended up buying like areally nice property just before
Newcastle.
That area will grow as well,but big block of land, four
bedroom good rental.
You know that just opens up somany different property markets
for the applicants.
Speaker 2 (20:11):
So with rental yield in those sorts of areas
Newcastle, wa, even to a lesserextent, you know Adelaide, south
Australia we do see a lot moreopportunity in those regional
areas.
Is it because of the fly in,fly out?
Is it because of workopportunities?
Do we really know why therental yield is better in those
(20:33):
locations?
Speaker 3 (20:34):
I would say, yeah, it's job-dependent as well, but
I also think it's because ofaffordability in certain areas
where it might look veryappealing to an investor, but
there's still a lot of owner andpeople needing to live in that
area.
So the investors flood there,they get in, they make their
(20:55):
money and then people still needto live around those areas.
Like you said, they're earninga good income because it might
be fly in, fly out, work orwhatnot, but it's probably about
having a balance in terms ofyour portfolio, I think.
Mom, coming back to mom anddads, um, they're actually, it's
actually a 35 billion dollarmarket and it's the ninth
(21:15):
largest lender in australia yeah, huge, I 100 believe that it's
35 billion dollars.
Speaker 2 (21:23):
It's huge.
We've got a population of 20mil let's say, 6 million of them
are parents.
It's massive, that is a hugeamount.
That's $150,000, $180,000 perperson.
Speaker 3 (21:37):
It's a top 10 lender.
So mom and dad's doing theirweight for their kids.
Australia is a verymulticultural country that we're
all kind of migrants.
You go back further enough andyou know they helped their kids
and we've got to help our kids.
It's a bit of a responsibilityon our shoulders for the next
(21:57):
generations as well.
Speaker 2 (21:58):
What's your piece of advice to parents out there that
are stubborn I'm talking very,very wog parents, okay that are
like no, save on your own.
What's your advice to them whenit comes to assisting their
kids, especially if they've gota house with plenty of equity in
it?
Speaker 3 (22:16):
I'd say start earlier , like I guess it's hard to
change your ways in certainaspects but, like for my kid for
example, I've started alreadyinvesting.
So in 25 years, when he's readyand he finds the love of his
life, he's got some funds there,you know, to help him out,
because I think this landscapeis only gonna get harder.
But if you've got the securitythere, it's not the biggest risk
(22:39):
.
If you're not, if you don'thave the money there, but you've
got the security, it can make amassive difference to getting
your kid to then stay in afairly local area compared to
you.
Or they're moving.
You know the stats say as well.
Two in every three are movingout, so your family's just going
further and further away.
(23:01):
So it depends on how much youwant to keep your kids close by
and I think you know a lot ofpeople do do and that's why we
see it's such a big market shareand especially with parents
already having the equity there,I think they're usually pretty
open to making sure they usethat security to help their kids
.
Speaker 2 (23:22):
And what's the advice you'd give to kids out there?
I'm talking 18 to 25.
Speaker 1 (23:26):
I don't want to go beyond that After 25,.
Speaker 2 (23:27):
You're an adult, you can make your own decisions.
Talking 18 to 25, I don't wantto go beyond that.
After 25, you're an adult, youcan make your own decisions, you
know but 18 to 25?
What's your advice to thoseindividuals?
Yeah um, looking to get intothe property market but don't
have the strong enough deposit,like, how would you go about?
Speaker 3 (23:41):
hey, mom and dad, this is what I want to do.
If you've got your mom and dadand they've got security there,
it's not always the deposit soyou still can enjoy your life,
travel.
I'm a big, big advocate fortraveling while you're young, um
.
But then there's you've got tobe smart with your money.
You might have to make asacrifice, like you can't have a
personal loan with a to totravel, or like your massive car
(24:03):
loan as well, because thosethings are going to affect your
serviceability.
So work hard, hard, get a goodcareer going for that period of
time.
So the deposit save while youcan, while you're at home.
That's the easiest time to save, right, if your parents have
the security check, if you'vegot a good job, you'll be
probably surprised with what youcan buy as an investment.
So we can structure it in a waywhere you can purchase a
(24:26):
property fairly young and thenyou're still living at home and
then saving as well.
So then you've got that growthin that property to when you're
ready to move into a no-knock.
Speaker 2 (24:37):
You highlighted something earlier starting them
off early.
Yeah, why is that so important?
Speaker 3 (24:42):
Well, it's time in the market.
So it's very hard to time themarket, but you know if you're
in it long enough and inproperty investing like it goes
in its cycles.
But we've seen really stronggrowth.
So if you can get in early, Ialways say the best time to buy
was yesterday, when you cancrunch your figures and see
where you're at and then have aplan in place Fantastic.
Speaker 2 (25:04):
Well, Anthony, I want to thank you so much for coming
on today.
I really appreciate it.
Thanks for giving us some adlibs.
That's what I'm here forIntroductions, some ad libs here
and there and a good oldfashioned quote.
If you want to reach out toAnthony or if you need any help
with your finance, you can reachout to us at wwwitsimplecomau.
(25:26):
As always, my name is Joe,that's I'm Shmoe, and thank you
for listening to the FinanceShow with Joe.
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmowho's about to lose his job, and
we have a very special guest,anthony.
Speaker 2 (00:11):
Anthony, thank you so much for coming on the show
today.
Just a brief introduction toAnthony.
Anthony used to be an underwearmodel for Calvin Klein and then
he decided, rather than pursuea career in modeling, which you
know is affected by age andstuff, anthony decided to get
married and, you know, settledown, become a broker.
It was just.
It's been a bit of a journey,but thanks for coming on, mate.
Speaker 3 (00:33):
thank you, thank you for having me.
It's, uh, yeah, greataustralian dream, isn't it to
just?
Speaker 2 (00:37):
keep working and being on this podcast all 15 of
our viewers would love to seethat smile on camera.
So tell us a little bit,Anthony.
You've been a broker for thelast 10 years prior to coming on
with it's Simple, Is that?
Speaker 3 (00:52):
correct.
Yeah, that's correct.
I started in finance about 12years ago.
It was mainly like a part-timething.
I was still working andlearning the skill behind the
scenes as well, and then, youknow, trying to get clients on
board.
I guess why I've made the jump.
I pretty much was a sole brokerfor a long time and I then
(01:12):
actually had a meeting with aBDM and he said if you want to
join the Premier League, youhave to join the big leagues.
And it was kind of a moment forme where I was like, okay, this
guy just said you've got toswitch on and jump.
I'm a big believer in gettingout of your comfort zone as well
to grow, like you don't havecold showers because you enjoy
(01:34):
them, right.
So that was like I needed tochange things up and see how
other brokers are doing it and Iwanted to become part of a team
that was growing.
And that's when I made a call.
I had a few other meetings aswell, but I made a call and
Michael actually said one of theother brokers had left and they
were.
You guys were looking, saidokay, come out and see.
See what's what it's all about.
Speaker 2 (01:55):
It's simple and working within a team as opposed
to being a sole broker, you doget to experience that support,
that camaraderie, the jokes, butalso I think there's a bit of
there's a lot more opportunity,because if someone doesn't know
how to structure a deal, that'swhen you can kind of come in and
create that opportunity foranother broker.
(02:16):
Would you say that?
Speaker 3 (02:17):
I 100% agree.
I think, like you get to seehow other brokers workshop
things, when you're by yourself,you're stuck in a certain way
that you think, okay, this ishow I should run the business.
But when you see it from a teamof other people and you've got
that support, that's when youcan really like, grow and thrive
.
So that's where I see myself,um, in this space going because
(02:37):
you've got that support from theother brokers as well so what
have you noticed over the last,you know, four months since
you've jumped on board with?
Speaker 2 (02:44):
It's Simple.
Speaker 3 (02:44):
Like what are the key ?
There has been deals that Ihaven't seen before coming
across for sure, which is good,because that's how you learn,
but just the speed at which wework at as well, like I got that
the first day, I was like, okay, you just need to like get
stuff done, which I'm a bigbeliever in, you know, so it
just all aligned I do want toshare this story because anthony
(03:06):
was sitting next to me duringthis meeting, if you remember.
Speaker 2 (03:09):
Yeah, um, we went out and we saw a referral partner
of ours.
Yeah, went out to a lunch andthis this is sort of the kind of
opportunity that gets presented, you know.
So we sat across from thisaccountant.
Could you just say the story,because I think it's one of the
funniest stories of my life.
Speaker 3 (03:25):
We were just sitting there.
It was the first time we metthis guy.
Lunch was going great, but hewas just so straight to the
point.
He was like do you want a $50million deal?
I kid you not.
And Joey was just like yeah,Are you going to say?
No to it that was like firstpretty much referral meeting
that we went to.
I was like, okay, you'retalking some big numbers and
(03:47):
you're talking to the rightreferral partners, so you don't
always get those opportunities.
Speaker 2 (03:52):
This is why you kind of need to take every
opportunity that's at your feet,regardless of the loan size.
It's never the deal in front,it's always the deal behind,
right?
So a previous client of ourshad introduced us to this
accountant because it was hisaccountant.
A previous client of ours hadintroduced us to this accountant
because it was his accountant.
And this previous client, youknow the loan size, was a
regular mom and dad's loan size.
Okay, I'm not going to say whatit was, but it was a regular
(04:14):
mom and dad's loan size.
One property, another property,another property, you know three
properties, a cumulative.
You know it was low, sevenfigures, but it wasn't you know
a huge amount.
And he's a good friend of mine,he's around, same age group,
and he just turns around.
He goes to us you have to meetmy accountant, and I go, okay,
I'm like I'm more than happy to.
And he goes, no, no, you haveto.
(04:35):
Like we're going to lunch thisfriday.
I'm like, okay, can I bring abroker that's what I called
anthony up.
And I still remember sittingacross from this guy.
And here I am with my littlereferral partner guy just ready
to give it up and be like it'slike I fucking want it.
I was like okay, it's likedon't fucking put it near me.
I'm like, okay, because youwant a 50 million deal, I'll go.
What?
(04:55):
And he goes, do you want?
And the reason why I was soconfused by it is because how
rare are those opportunitieslike I've never seen anything
like it.
Speaker 3 (05:06):
I was like like at first we actually thought was he
taking the piss?
Speaker 2 (05:10):
I still think he's taking the piss.
Speaker 3 (05:13):
He's got the middle finger and I'm like I don't know
.
He was being dead set and, likeyou could tell, like after that
.
Speaker 2 (05:18):
Yeah, so that's been a very fruitful relationship.
So give us a little bit ofchime into your day-to-day and
where you've helped individualsover the last few months.
Speaker 3 (05:30):
Yeah, leading back to kind of like those
opportunities are great.
I want to be able to deal withlike high net worth clients as
well, but a big part of mecoming to it's Simple as well is
because there was a bigpresence out at Orem Park and
you know that's a real communityfeeling real like mum and dad
vibe out there and I've justbecome a parent as well,
congratulations.
Speaker 2 (05:50):
Thank you.
Speaker 3 (05:50):
How is little Hugo?
He's doing really well.
He's so happy.
Every day he's growing and just, yeah, more and more active.
So it's so good to see.
But that's like now.
You know the reason you doeverything.
And my biggest responsibilityand I guess, leading into the
episode about mums and dads andbank of mum and dad, that's a
(06:11):
big responsibility of mine tomake sure that he's well looked
after in the future and the kindof clientele that we're dealing
with.
I wanted to have a big presenceat Orem Parkway because I'm
moving further out to Camden, sofor me that's a really big
thing.
Speaker 2 (06:27):
Family- it's more common, like you're mentioning
Bank of Mum and Dad you'rementioning, you know it's more
common than ever to get a loanfrom your parents or a gift from
your parents to be able toafford a deposit now?
Speaker 3 (06:37):
Yeah, 100%.
We do a lot of guarantor loans.
You know how mum and dad helpdoesn't always need to be with
this massive gift, but you knowum how mom and dad help.
It doesn't always need to bewith this massive gift.
But you know that that doeshelp.
But there's so we're justseeing a lot more lately where
they might not be purchasingtheir own ARC but they might be
(06:58):
purchasing an investment neartheir parents so that in the
future that's where they'regoing to reside.
So there's a lot of strategicways you can do it, but it does
take a bit of planning.
These days it's not maybe.
Okay, I want to live fiveminutes from mum and dad, and
that's it.
My dad, when he first came outto Western Sydney, he had to
move 20 minutes out, you know,and that's just how it was.
(07:21):
But it kind of is an evolvinglandscape where, yeah, you might
have to move out a little bitfurther, but there are ways to
do it.
Speaker 2 (07:31):
So why do you think it is that kids need to go to
their parents for these deposits?
Why do you think that they needto ask their parents?
Hey, can you go?
Guarantor for me.
Speaker 1 (07:39):
Yeah.
Speaker 2 (07:39):
Is always here.
You know, there's always somerandom politician that goes oh,
you know, rent, save and thenyou can buy.
Oh, you're spending too muchmoney on what was it?
Avocado, avocado on toast.
Speaker 3 (07:50):
Avocado on toast.
You can cut your avocado ontoast out, but really you can't
save as quick as property hasbeen going up.
So that's why you need your helpfrom your mum and dad.
Truly, it just escapes youbecause you think, okay, how can
I save?
And then you do your budget andyou're like, okay, next year
(08:11):
I'll be able to afford it.
Then you go back into themarket and you're like, okay,
it's moved when you can.
That's why it's important tocrunch your figures and speak to
a broker, because you can planfor the long term and then see
where your parents are at why isit important to speak to a
broker?
because you might just go toyour lender that you've been.
You know what I remember as akid, going to cba having your,
(08:34):
your little deposit yeah andlike, but like, that's how they
got everyone in.
You know, and it's like youthink okay, my homeland, my home
loan is going to be with CBA.
What if CBA says no, then whereare you going to go?
Brokers have a whole list oflenders on their panel and there
might be a 1% buffer somewhere.
There might be a 2% buffersomewhere else that you can
(08:57):
borrow a lot more.
So it makes sense that if youcan get into that property and
hold it, then you need toexplore your options.
Speaker 2 (09:06):
Tell me a little bit about the different lenders.
Speaker 3 (09:08):
So I just want to do a comparison right now.
Speaker 2 (09:09):
So let's take a lender like First Mac and then
let's take a lender likeMacquarie.
They might offer the sameinterest rate, they might both
be at 6.14% or 6.09% orsomething along the lines of
that, but what is the differencein the borrowing capacity
between those two lenders?
Speaker 3 (09:26):
It can be huge.
I've had clients even recently.
They can't purchase a secondproperty with your mainstream
lenders, but then we take themto First Mac and they're able to
afford a property because theyassess income a little bit
different.
The buffer on existing debt issmaller.
Their assessment rate issmaller compared to a 3% buffer,
(09:49):
for your normal bank as well.
So all those things might seemsmall, but they add up and then
it can be the difference between$300,000, $400 000, 400 000
sometimes.
Speaker 2 (10:01):
I did a loan recently , I think it was a 1.5 million
dollar deal at saint george.
If they were to go for thisloan, they would be out of
pocket, like that means they'dbe bankrupt, obviously, but they
would be negative.
I think it was negative 300 000or something like that.
Okay, yeah, but for some reason, at first mac, they fit and you
listed the reasons why they'vegot a two percent buffer.
Right, yeah, they account forthe negative gearing and they
(10:25):
also make sure that you know, uh, they, I think it's an 80 of
the rental income, but theydon't factor in you know, nine
million different expenses.
That might not be the expenselevel of another lender.
Speaker 3 (10:37):
Very true, Like even like people purchasing their
first property.
They tend to maybe go for astrata build you know, it could
be a unit, could be a townhouse.
Some lenders treat strata andobviously that's within their
expense, their normal HEMexpense, but others exclude it.
So your borrowing capacity canchange dramatically there as
(11:00):
well.
Speaker 2 (11:00):
It gets smashed out.
Speaker 3 (11:01):
That's literally just for a strata complex.
So that's where it's affordablefor some first home buyers as
well.
So that's why it's importantreally to speak to brokers so
they can assess all that.
Speaker 2 (11:11):
So take me back to using the majors and then
possibly, let's say we don'thave bank of mom and dad let's
say somebody is using the firsttime guarantee.
Yeah, now we've been exposed tothe first-time guarantee quite
a bit, especially over the lastfew months.
You know first-time buyerswanting to come in A few years
ago.
The way that we would calculatesomeone's income is $100,000,
(11:32):
you know they would probably beable to borrow seven times what
their income is.
That's now dropped to about 4.3to 5.
So if you're earning 100K, themaximum you're going to be able
to borrow from NAB, cba, anz, ifyou've got HECS debt or if you
don't have HECS debt, it'sprobably going to be about 500K.
What can you buy in Sydney for500K?
Speaker 1 (11:53):
Well, you can't or call Logic Data.
There's no Sydney suburbs wherean average income owner can buy
without a guarantor Sydneysuburbs where an average income
owner can buy without aguarantor, without the bank of
mom and dad?
Speaker 2 (12:03):
Really there's literally no suburbs.
Speaker 1 (12:04):
There's no suburbs that you could buy, not with an
average income.
Speaker 2 (12:07):
Not with an average income.
Speaker 1 (12:07):
No.
Speaker 3 (12:08):
Yeah, that's a wild stat.
Like, the average earner can't,in their suburb, afford any.
Speaker 1 (12:14):
So it's, even with dual incomes, like I think, if a
couple, yeah, a dual averageincome couple, will still be
short, 270k that is.
So what are you supposed to?
Terrifying, yeah what are?
You supposed to do?
You have to ask your parentsyeah.
Speaker 2 (12:28):
So when you're structuring these types of loans
, you know with the parents, oryou know you're structuring it
with the borrowers, theindividuals themselves.
How are you explaining to themthat, hey, you what?
You really can't do this onyour own.
You need family support.
Speaker 3 (12:43):
Once we're crunching those figures and we've explored
all options and they might notbe able to have any other avenue
.
That's when we have to say isthere any way you can get a gift
?
Or, if your parent how's theirproperty looking, if we can use
their property as security soyou don't have to pay additional
fees and things like that?
(13:03):
But it's always an importantconversation to have.
It's just a really hardlandscape at the moment with how
interest rates are and propertyprices.
They didn't really drop toomuch in that COVID period to
make a difference.
Speaker 2 (13:17):
It's only just started to drop.
Speaker 1 (13:18):
Yeah, and only very slightly.
Speaker 2 (13:21):
This is the thing I post it on my Instagram stories
every week Chester Hill, patstow, anything in the Bankstown,
south West Sydney, canterburyCouncil area it's still booming.
We saw a house in Patstow theother day.
They bought it in 2019 for$900,000 and they have not done
(13:43):
a renovation nothing and theysold it two weeks ago for $1.6
million.
And that's just because of theway that they've changed the
development laws in that area.
And you know we always mentionCDC, the way that you can get
private certified to come in andassist you in building a duplex
.
All those areas are booming.
Come in and assist you inbuilding a duplex.
Yeah, all those areas arebooming.
(14:03):
And I just want to come back toOran Park, and that's a part of
Western Sydney.
Yeah, oran Park's growing likecrazy.
Speaker 3 (14:08):
Yeah, it's crazy how much development has gone out
that way and like it's reallygood for the area and it really
brings everyone like to.
I think because with COVID aswell, people were like, okay,
maybe I can do like a work fromhome, split or whatever.
So that way it's moved all theinfrastructure out that way and
people have the flexibility tobe able to look at those areas
(14:31):
and set their family up and seethem staying there for a long
time because they've goteverything around.
Speaker 2 (14:37):
I want to bring up one valuation that Ali Ali, I
was about to call him by mywife's name.
Do you want to be my wife?
No, I'm just kidding.
One valuation we did recentlyand it was for an apartment in
Orem Park.
Yeah, Do you remember how muchthey purchased that property?
Speaker 3 (14:53):
for it was 550, wasn't it?
Or just over 550.
Speaker 2 (14:58):
And what did the recent valuation come back?
Speaker 3 (14:59):
This is two years, yeah, two years.
735, we got it.
Speaker 2 (15:04):
That is a 27% growth on an apartment on a strata
complex.
So even areas like that arestill growing, and if you're a
mom and dad or if you're a younginvestor looking to tap into
the potential of Sydney, thereis still a lot of opportunity
out there, definitely, yeah.
So where are your favouriteareas right now?
Speaker 1 (15:27):
Caught him off guard.
Speaker 3 (15:28):
Well, I'm moving out the west, I'm going to Camden,
so like that's just for me.
You got a bit of like more landand there's new schools, new,
like new.
Everything is going out thatway.
So that's how, like when wecame out to the west, I was very
much brought up in that kind ofarea where everything was brand
(15:52):
new.
So I thought I kind of want thesame for my kid as well.
So, yeah, we're kind of we'regoing out that way and that's
where I want to be.
Speaker 2 (16:01):
They had a statistic the other day the camden lga, so
I know lga is a naughty wordbecause we all remember it from
um covid I was like why is it anaughty word?
Speaker 1 (16:12):
what have I missed?
I just, I just remember, likelgas, and then everybody in
bondi is partying.
Speaker 2 (16:16):
And then there was helicopters flying over paramata
and I was like yeah, somethingain't right here.
Speaker 3 (16:22):
The math ain't mathin'.
Speaker 2 (16:23):
But, the Camden LGA is actually the fastest growing.
Speaker 1 (16:25):
LGA in Sydney.
I believe that my cousins livethere and I drive there pretty
regularly.
Speaker 2 (16:32):
You drive from Quakers Hill to Camden.
Speaker 1 (16:35):
Yeah, how long does that take you About 40 minutes,
45 minutes and that's the thingthat we've got to bring up about
Western Sydney.
Speaker 2 (16:41):
They're investing.
I've got no infrastructure.
No, I've got no metro.
I don't have no tunnel.
I don't have any highways beingbuilt.
All I've got is NIMBYs in mybackyard, not in my backyard,
not in my backyard, not in mybackyard, that's it.
They do not give a single shit.
Oh, a national park there?
Too bad, you can't build atrain line Like.
There's just so many things,lost opportunities in the
(17:04):
southwest portion of Sydney, butwhere you guys are kind of
situated because there's so muchspace, so much development,
there's actual opportunity there.
Yeah, I still remember when EdSquare was being built, my
brother-in-law and I drovethrough it and all I could think
to myself was I don't knowabout this area, I don't know if
it's going to do well, it isthe most booming area.
You go there at night.
Speaker 3 (17:24):
You know for one of the restaurants about, yeah,
like there's so much life goingon, yes, food everywhere, so
people want to like be aroundthat you know.
So they're bringing differenthubs out there and um, that just
, yeah, brings that culture andum, yeah, people were happy to
to spend a little bit extra andand, look, it's really I think
everyone's kind of that goes outwest or is accustomed to
(17:46):
driving a little bit as well,yeah, you got it right.
Speaker 2 (17:50):
You got it.
Coming back to the originaltopic, the bank of mum and dad.
Yeah, okay, which banks I wantto say are assisting the most
right now when it comes toguarantor loans or the
first-home guarantee?
Speaker 3 (18:01):
Yeah, so you've got your majors and we do a lot of
guarantor loans with likeWestpac CBA.
But and there's, we do a lot ofguarantor loans with like
Westpac CBA, but actuallythere's a stat 60% of all
applicants, first home buyers,are getting help from mum and
dad.
You know it's a growing theme.
You're not alone if you feellike you need to get help from
mum and dad or like there arethe government schemes that are
(18:23):
trying to help as well.
So there are heaps of options.
But yeah, you're not reallyrefined to like 30 lenders if
you think you need to get helpfrom mum and dad or whatnot.
Speaker 2 (18:35):
But one thing I do want to bring up about the
guarantor loans.
Speaker 3 (18:38):
Yeah.
Speaker 2 (18:38):
It doesn't need to be owner occupied, does it?
Speaker 3 (18:40):
No, it doesn't.
It doesn't.
It can be an investment and itcan be your parents' investment
property as well, so there areso many options really to cover
the security aspect of it.
Speaker 2 (18:49):
What's the difference ?
If somebody wanted to buy aninvestment as their first
property as opposed to anowner-occupied property, how
much more could they borrow?
Speaker 3 (18:57):
potentially.
Look, it makes a substantialdifference because we can factor
in the rental income, which isa big help.
Then there's negative gearingand all of that.
So you'd be surprised, like Ihad an applicant that I told him
sorry, your borrowing capacityis 400k.
Again he was like what am Igoing to do with 400k?
I said no, well, if you buy aninvestment property, he was up
(19:19):
750 and with his deposit he wasup over 800k.
It nearly doubled, yeah, youknow, and um, that's massive.
That opens up so many differentavenues to buying property.
And then the leverage that youcan do with to get the gain on
400 versus the gain on 800, it'sgonna propel your, your wealth
(19:39):
so, like when you're buying for400 000, you're buying a studio
yeah studio or one battle yeah,you look, you can go interstate
as well.
Yeah, if it's investment, butbut when?
Speaker 2 (19:48):
you're buying for 800k, you're you're probably
getting a block of land and ahouse.
Speaker 3 (19:52):
Exactly, yeah.
So markets open up so much.
They ended up buying like areally nice property just before
Newcastle.
That area will grow as well,but big block of land, four
bedroom good rental.
You know that just opens up somany different property markets
for the applicants.
Speaker 2 (20:11):
So with rental yield in those sorts of areas
Newcastle, wa, even to a lesserextent, you know Adelaide, south
Australia we do see a lot moreopportunity in those regional
areas.
Is it because of the fly in,fly out?
Is it because of workopportunities?
Do we really know why therental yield is better in those
(20:33):
locations?
Speaker 3 (20:34):
I would say, yeah, it's job-dependent as well, but
I also think it's because ofaffordability in certain areas
where it might look veryappealing to an investor, but
there's still a lot of owner andpeople needing to live in that
area.
So the investors flood there,they get in, they make their
(20:55):
money and then people still needto live around those areas.
Like you said, they're earninga good income because it might
be fly in, fly out, work orwhatnot, but it's probably about
having a balance in terms ofyour portfolio, I think.
Mom, coming back to mom anddads, um, they're actually, it's
actually a 35 billion dollarmarket and it's the ninth
(21:15):
largest lender in australia yeah, huge, I 100 believe that it's
35 billion dollars.
Speaker 2 (21:23):
It's huge.
We've got a population of 20mil let's say, 6 million of them
are parents.
It's massive, that is a hugeamount.
That's $150,000, $180,000 perperson.
Speaker 3 (21:37):
It's a top 10 lender.
So mom and dad's doing theirweight for their kids.
Australia is a verymulticultural country that we're
all kind of migrants.
You go back further enough andyou know they helped their kids
and we've got to help our kids.
It's a bit of a responsibilityon our shoulders for the next
(21:57):
generations as well.
Speaker 2 (21:58):
What's your piece of advice to parents out there that
are stubborn I'm talking very,very wog parents, okay that are
like no, save on your own.
What's your advice to them whenit comes to assisting their
kids, especially if they've gota house with plenty of equity in
it?
Speaker 3 (22:16):
I'd say start earlier , like I guess it's hard to
change your ways in certainaspects but, like for my kid for
example, I've started alreadyinvesting.
So in 25 years, when he's readyand he finds the love of his
life, he's got some funds there,you know, to help him out,
because I think this landscapeis only gonna get harder.
But if you've got the securitythere, it's not the biggest risk
(22:39):
.
If you're not, if you don'thave the money there, but you've
got the security, it can make amassive difference to getting
your kid to then stay in afairly local area compared to
you.
Or they're moving.
You know the stats say as well.
Two in every three are movingout, so your family's just going
further and further away.
(23:01):
So it depends on how much youwant to keep your kids close by
and I think you know a lot ofpeople do do and that's why we
see it's such a big market shareand especially with parents
already having the equity there,I think they're usually pretty
open to making sure they usethat security to help their kids
.
Speaker 2 (23:22):
And what's the advice you'd give to kids out there?
I'm talking 18 to 25.
Speaker 1 (23:26):
I don't want to go beyond that After 25,.
Speaker 2 (23:27):
You're an adult, you can make your own decisions.
Talking 18 to 25, I don't wantto go beyond that.
After 25, you're an adult, youcan make your own decisions, you
know but 18 to 25?
What's your advice to thoseindividuals?
Yeah um, looking to get intothe property market but don't
have the strong enough deposit,like, how would you go about?
Speaker 3 (23:41):
hey, mom and dad, this is what I want to do.
If you've got your mom and dadand they've got security there,
it's not always the deposit soyou still can enjoy your life,
travel.
I'm a big, big advocate fortraveling while you're young, um
.
But then there's you've got tobe smart with your money.
You might have to make asacrifice, like you can't have a
personal loan with a to totravel, or like your massive car
(24:03):
loan as well, because thosethings are going to affect your
serviceability.
So work hard, hard, get a goodcareer going for that period of
time.
So the deposit save while youcan, while you're at home.
That's the easiest time to save, right, if your parents have
the security check, if you'vegot a good job, you'll be
probably surprised with what youcan buy as an investment.
So we can structure it in a waywhere you can purchase a
(24:26):
property fairly young and thenyou're still living at home and
then saving as well.
So then you've got that growthin that property to when you're
ready to move into a no-knock.
Speaker 2 (24:37):
You highlighted something earlier starting them
off early.
Yeah, why is that so important?
Speaker 3 (24:42):
Well, it's time in the market.
So it's very hard to time themarket, but you know if you're
in it long enough and inproperty investing like it goes
in its cycles.
But we've seen really stronggrowth.
So if you can get in early, Ialways say the best time to buy
was yesterday, when you cancrunch your figures and see
where you're at and then have aplan in place Fantastic.
Speaker 2 (25:04):
Well, Anthony, I want to thank you so much for coming
on today.
I really appreciate it.
Thanks for giving us some adlibs.
That's what I'm here forIntroductions, some ad libs here
and there and a good oldfashioned quote.
If you want to reach out toAnthony or if you need any help
with your finance, you can reachout to us at wwwitsimplecomau.
(25:26):
As always, my name is Joe,that's I'm Shmoe, and thank you
for listening to the FinanceShow with Joe.
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