March 13, 2025 • 40 mins
The long-awaited 0.25% interest rate cut from the Reserve Bank of Australia has finally arrived, bringing welcome relief to homeowners after rates reached their highest point in 15 years. But beyond the modest monthly savings—about $180 for the average New South Wales mortgage holder—lies a much more significant opportunity that savvy Australians shouldn't overlook.
First-time buyers with median NSW salaries now have an additional $12,000-$14,000 in borrowing capacity, potentially bridging the gap that previously kept them from entering the market. Investors gain even more leverage, with borrowing power increasing by $15,000-$20,000. This expanded capacity coincides perfectly with the government's new residential housing scheme that has relaxed zoning laws across numerous NSW hotspots, creating a perfect storm of opportunity for those previously priced out of the market.
Unlike previous rate cuts, we're unlikely to see an immediate property price surge. The two-year ban on foreign investment in existing properties, combined with depleted savings across Australian households due to prolonged high interest rates and inflation, means the market response will likely be measured. The Northwest corridor of Sydney, with its significant infrastructure investments including the metro line that connects Barangaroo to Bella Vista in just 38 minutes, stands out as a particularly promising investment region.
Rather than putting small sums into Bitcoin or stocks, Joe advocates investing in yourself—developing marketable skills like video editing that could generate exponentially more income than the interest savings alone. This entrepreneurial mindset, combined with understanding Australia's business tax advantages (25% flat company tax versus up to 46% personal income tax), offers a pathway to true financial independence and wealth creation that goes far beyond the impact of a single rate cut.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Interest rates had not been that high for a very,
very long time From memory ofthe headlines.
Speaker 2 (00:06):
it was like 15 years.
Speaker 1 (00:07):
at least the Reserve Bank of Australia finally met
together and cut the interestrates by 0.25%.
Speaker 2 (00:16):
With the interest rates going down, will property
prices then go up again?
Will it balance out or willthey again exceed?
This is a pity.
Speaker 1 (00:23):
So I think it's.
I get young people coming to meall the time.
What should I invest in?
What's going to make me?
What's going to drive my wealth?
Should I invest in Bitcoin?
Should I invest in the stockmarket?
Should I do this?
I'm going to tell them shut thefuck up.
And the reason I'm going to saythat out loud is because
Australia is a growingpopulation.
(00:44):
There are a lot of individualshere competing for your job and
in order to be able to succeedin Australia truly, truly
succeed and make it to that nextlevel, you have to f***.
Speaker 2 (01:02):
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmo,and today we're going to talk
about why interest rates don'tmatter, if you're poor.
Speaker 1 (01:10):
You are not a schmo, I'm just going to highlight this
.
So we've done about, you know,20 episodes now 20 or so yeah.
And Michael's been callinghimself a schmo for quite a
while.
But look at him today he'swearing a nice black shirt.
He looks quite corporate.
He's a homeowner.
Speaker 2 (01:26):
This is true.
This is true.
Who has?
Speaker 1 (01:28):
recently completed his renovations.
Speaker 2 (01:30):
Uh, yeah, yeah, Still got to put in the TV racks, but
it's done.
It's on the low priority list.
Speaker 1 (01:36):
It's um at your age.
Speaker 2 (01:38):
Not many people would be able to achieve that no, and
I was able to, because of myentire family.
Speaker 1 (01:48):
I understand, but don't sell yourself short.
Oh, thank you, because you werestill able to contribute
towards it and you were stillpaying off your mortgage and
you're doing some amazing things, and the reason I wanted to
bring that up is because youentered the mortgage market when
it was at its toughest.
Yeah, it wasn't wasn't a goodspot it was not, so I believe
(02:09):
that we got you an interest rateof six point I think six point
three, five or six point four,something around there it was
somewhere around there.
Yeah, interest rates had notbeen that high for a very, very
long memory.
Speaker 2 (02:23):
the headlines it was like 15 years, at least
something like that, Since Ithink it was the GFC that makes
sense right.
Speaker 1 (02:29):
Somewhere along there .
Last time, inflation was crazy,that's right, and it was rather
remarkable that you and yourfamily were able to get together
to be able to purchase aproperty.
Speaker 2 (02:40):
We also had a star broker Definitely helped make it
all happen.
Speaker 1 (02:46):
That's a cheap plug.
That's a cheap plug, but thereason I wanted to bring that up
is the headline of today'sepisode.
Yeah, the Reserve Bank ofAustralia finally met together
and cut the interest rates by0.25%.
Speaker 2 (03:01):
Yeah, which is good news for homeowners across
Australia.
Speaker 1 (03:04):
It's good news for homeowners.
It's good news for first-timebuyers.
It's good news for first-timeinvestors, people who are
looking to finally break intothe market.
People are going to hear andthey're going to read a lot of
headlines in regards to how muchdoes 0.25% actually affect me?
Yeah, yeah, if you've got theaverage mortgage in New South
Wales, you're saving about $180.
(03:26):
Something around that.
Yeah, max per month.
Yeah, what's $180 a month?
$180 a month.
Multiply that by 12.
You're looking at about $2,160.
Something like that.
$2,160 a year is not a hugeamount in the grand scheme of
things, considering.
Groceries cost you $300 a week.
Speaker 2 (03:47):
Yeah, exactly, I mean , in one sense it does help with
said grocery bill.
You've got an extra $180 amonth to put towards that
grocery Again.
How much does that changethings?
Not sure yeah.
Speaker 1 (03:59):
But it's how much more borrowing capacity you have
, and this is something I wantedto highlight in today's episode
.
I've seen a plethora.
Speaker 2 (04:11):
Good word You're the journalist.
Speaker 1 (04:14):
I've seen the people jumping online and being like
it's only a 0.25% rate cut.
Why are brokers celebrating?
Now, anybody that knows mypersonality I'm the freaking
wolf of wall street when itcomes to this shit you should
have seen the day the rates weredropped.
Speaker 2 (04:30):
You would have popped champagne if you could however.
Speaker 1 (04:34):
However, it isn't so much about the money that we are
saving.
It's the opportunity that iscreated.
It's the opportunity that'screated for first-time buyers.
It's the opportunity that'screated for first-time buyers.
It's the opportunity that'screated for first-time investors
.
It's the possibility that'screated from this.
So I crunched the numbers as Ido.
If you are a first-time buyer,okay, you are purchasing your
(04:57):
first property in New SouthWales and you are going for all
the schemes the first-homeguarantee, the first-home
owner's grant and you knowyou've got a 5% to 10% deposit
and you really want to tap intothe market Because of these
0.25% interest rate cuts.
Okay, and let's say you've gotthe median salary in New South
Wales, which is roughly $95,000to $98,000, you can borrow
(05:19):
$12,000 to $14,000 more, Okay.
So as opposed to thinking abouthow much you're going to be
saving, it's about how much moreyou can achieve.
I've seen people be priced outof purchasing apartments because
they couldn't make up thatextra $10,000.
Look what you got in yourpocket now Exactly.
(05:41):
So now there is more capability,there are more options to
explore.
Yeah, If you are purchasing aninvestment, it increases even
further.
I don't know why.
This is just how these mortgagecalculators work.
Okay, but if you are purchasingan investment, this is
including your notional rent.
For our listeners that don'tknow what notional rent is, the
bank considers that you'repaying your parents rent of $650
(06:02):
a month.
Speaker 2 (06:03):
Really Like if you live at home.
They think you're paying rent.
Yep.
Speaker 1 (06:06):
They didn't do the study on what kids I was going
to say but so there's notionalrent.
There's quite a lot of things,but we've included that.
We included the rental income,the possible negative gearing,
all those items.
You can borrow $15,000 to$20,000 more, okay.
So on one side you can borrow,you know, you go from $600,000
(06:29):
to $615,000 in borrowing.
On the other side, if you'reinvesting, you're going from
$800,000 to $820,000.
Okay, so that opens up a worldof possibility for you if you
are looking to purchase property.
The exact same time, interestrates were cut.
The government also releasedtheir low to medium residential
(06:50):
housing scheme, where theyhighlighted all of these little
hotspots all across New SouthWales that you would now be able
to build more apartments morehomes, density laws have changed
and stuff like that.
Speaker 2 (07:02):
That's correct.
Speaker 1 (07:03):
So what they've done is they've opened up the
opportunity for people likeyourself two years ago, your
sister a couple years ago, avideographer, liam.
Speaker 2 (07:14):
Anyone who is in that age graph age Everyone in their
late 20s and early 30s,basically.
Speaker 1 (07:20):
You took the words right out of my mouth, but what
they did is they opened it allup for them to be able to
purchase, and not only purchasea property, but purchase in New
South Wales, yeah, and have thatopportunity to be able to grow
again.
Speaker 2 (07:33):
Yeah and that's really good.
But just counter to that, withthe interest rates going down,
will property prices then go upagain and will that change?
Will it balance out or willthey again exceed?
Like you know, you get extramoney now, like extra 15K.
Will property prices go up pastthat point?
Speaker 1 (07:49):
I don't think so.
Okay, and this is opinion, thegovernment came in and they've
put a two-year ban on foreignersbeing able to invest in
existing properties.
Yes, I heard that All acrossAustralia.
Okay, that makes sense.
So that's the first thing thathas come in to prevent, like, a
huge property price surge.
(08:10):
Yeah, that's the first thing.
The second thing is the effectof high interest rates over the
last two years.
Okay, because interest rateswere so high.
What did we see in that time?
We saw coals and wool wordsincrease their prices because of
production line bullshit andinterest trades.
Still don't really know whythey did it, but sure Nobody
knows the reason why.
(08:31):
We've seen restaurants increasetheir prices.
We've seen I bought a bottle ofwater from McDonald's the other
day and it was like $4.55.
Because of all these increasesin prices, the savings has
dwindled.
So the average amount ofsavings that somebody in New
South Wales had in 2022 was$36,000, $37,000.
(08:55):
Huge amount of money.
That's five figures In 2024,that is around $31,000.
Now listeners might be sittingthere and thinking to themselves
that's a $5,000 difference.
It's not that big.
But wait, because of inflation,your $31,000 is actually worth
less than what it would havebeen two years ago.
(09:16):
Yes, yes, yes, because the costof goods, the cost of living,
has gone up so high.
So I don't think that propertyprices are immediately going to
boom again.
And I think I made a reel ofthis the other day.
I specifically highlighted thefact that because genuine
savings, or savings in general,are down, you're not going to
see an immediate rush to auction.
(09:38):
You're not going to see animmediate explosion of property
prices.
It will go back up.
It's Australia, we are ablue-collar country and
everything is based on propertyEvery barbecue, everywhere you
go.
I'm doing this, I'm building agranny flat, I'm doing a duplex.
Speaker 2 (09:55):
You've heard it a million times.
Speaker 1 (09:58):
It is the ticket to be able to create wealth in
Australia.
Speaker 2 (10:02):
Property is the way, especially generational wealth
as well, if you want it for yourkids.
Speaker 1 (10:05):
Very easy to pass that on 100%, but it's not going
to be an immediate boom.
Okay, especially becausethey're increasing the supply of
housing, as mentioned earlieryeah, and at the exact same time
, they've cut the foreigninvestors for existing
properties.
Yeah, the genuine savingsaren't built up, so I actually
think there's going to beanother rate cut.
Well aren't built up.
Speaker 2 (10:31):
Yeah, so I actually think, there's going to be
another rate cut.
Speaker 1 (10:32):
Well, there is predicted to be at least two,
even though the rba said like,oh, don't you know, don't bet on
it.
I think they're always going tosay that.
Well, not necessarily afterphilip lowe's.
Uh, yeah, you know, interestrates won't go up for this
period of time yeah, you knowwhat?
Speaker 2 (10:40):
yeah, take it back.
Speaker 1 (10:41):
Yeah, I think they're being very cautious yeah and
selective with their wording.
Speaker 2 (10:46):
now, that's smart from a PR point of view, you
don't have a potato on TV goingno, interest rates aren't going
to go up.
Speaker 1 (10:52):
Everybody going out and buying property and then all
of a sudden, I can't afford myproperty.
This is the RBA's fault.
So it's actually superinteresting.
But there's two sides of thecoin of the interest rates going
down.
It's opportunities being openfor people that are looking to
create that wealth yeah and thenthere's opportunities being
created for people looking tosave money at the exact same
(11:15):
time explain to me the savingsthing.
Speaker 2 (11:16):
What do you mean by that?
Speaker 1 (11:18):
if you've already got a mortgage, you're now a
hundred hundred eighty dollars amonth in the clear.
Okay, that might be one and ahalf to $2,000 a year in savings
on a mortgage.
What if you have fourinvestment properties?
Speaker 2 (11:31):
Well, that's all going to add up, isn't it
Exactly?
Speaker 1 (11:34):
Yeah, what if you were the type of person that at
the age of 40, 45, you've builtup a property portfolio and I'm
not saying you've got a house inDover Heights, you've got a
house in You've portfolio andI'm not saying you've got a
house in dover heights.
You've got a house in.
You've just got multipleproperties.
You've got multiple.
You could have bought regional,you could have brought rule,
you could have bought tassie,queensland, kingswood,
everywhere, yeah.
(11:54):
So the savings that you havenow it's not a hundred dollars a
month, it's four hundreddollars a month.
Speaker 2 (11:58):
Yeah, that's five thousand dollars a year yeah,
because even if you've got likethis is and this is goes back to
what I was saying at thebeginning of the episode the
rate cuts don't matter too muchwhen you're poor, because and I
honestly I say that more as ragebait, let's, let's be clear
because it does make adifference, especially, you know
, especially with grocery billsand cost of living going up.
(12:20):
It does make a difference.
But who it's really making adifference before is like, if
you've got a two million dollarproperty, you're paying $12,500
per month right now.
Now, with the rate cut, likeyou said, that's $400 in your
pocket.
Speaker 1 (12:32):
There's a whole subsection of people that I do
want to discuss, and that'sbusiness owners.
Now, you know, we're doing abit of prep for this podcast and
Michael's asked me, you know,for someone who's a little bit
younger, between the age of 25to 30 yeah, they've bought a
(12:52):
property.
They can now save a hundreddollars a month.
What can they do with thatextra hundred dollars a month?
Yeah, I will add on top of thatwhat can they do with that
extra 14, 15 000 a year thatthey could borrow?
One thing I always want tohighlight australia is a growing
population.
Yeah, always.
There are a lot of individualshere competing for your job, and
(13:15):
in order to be able to succeedin australia truly, truly
succeed and make it to that nextlevel, you have to own your own
business.
You can be on as high of asalary as you want.
You could be on a $200,000,$300,000 a year salary.
You know what happens when youenter those brackets it's the
taxes.
Right, correct?
So I think it's after $149,999,somewhere along the lines of
(13:41):
that you start getting taxed ata rate of 46% on every dollar
that you earn past that.
So you might be on a greatsalary.
You might be on $150,000 a yearand then you get $200,000 a
year bonuses, whatever.
You could be a solicitor, youcould be one of these people.
Yeah, what ends up happening isyou will get smashed on tax.
(14:01):
Okay, I'm going to advisesomething right now.
The advice on this channel isgeneral in nature and not
specific to you or yourcircumstance, and if you do need
any specific advice, pleaseconsult a finance professional.
Yeah, financial advisor,accountant, someone along the
lines of that.
So I get young people coming tome all the time.
What?
Speaker 2 (14:19):
should.
Speaker 1 (14:19):
I invest in?
What's going to make me money,what's going to drive my wealth?
Should I invest in Bitcoin?
Should I invest in the stockmarket?
Should I do this?
I'm going to tell them shut thefuck up.
And I'm just going to say thatout loud.
And the reason I'm going to saythat out loud is because if you
(14:41):
buy $1,000 in Bitcoin right nowand it goes up 20% in a year
We've seen Bitcoin do this inthe past yeah, 100.
How much more money is that?
200?
200, yeah, what's 200 going todo for you in the grand scheme
of things?
By the time inflation comesaround and everything, guess
what you might?
Might have bought yourself a,an extra cart of groceries.
(15:03):
Yeah, okay, then you're gonnaget the bitcoin, bro saying, oh,
it's long-term investment.
I'm not saying Bitcoin is badfor once.
What I'm trying to say is that$1,000 might be better well
spent.
Speaker 2 (15:14):
Yeah, yeah, like better return somewhere else,
yeah.
Speaker 1 (15:17):
Invest in yourself.
Yeah, invest in yourself andcreate a business, and I'm going
to highlight two reasons why.
When you can depend on yourselfand you can make yourself a
living okay, you are not underthe control or the direction of
(15:38):
someone else yeah, you are ableto create this wealth for
yourself.
At the exact same time, and youcan get started with something
as simple as a laptop, fewpieces of software and you can
start yourself a side hustle.
Now, what that side hustle is,that's 100% up to you, but I've
seen people turn side hustlesinto six-figure businesses.
Speaker 2 (15:59):
Yeah, I mean, you look at a lot of YouTube
channels.
A lot of them start as likeyeah, I had a couple, you know,
I saw one person that said theirparents gave them a challenge,
turned $200 into $1,000.
So they bought some cheapcamera equipment and some
editing software.
They already had a laptop, yeah, and they started a YouTube
channel and off it went and theymade enough money, like it
(16:20):
wasn't their only job but it wasa side hustle that made extra
cash.
And that was just from $200.
Speaker 1 (16:26):
Yeah, but it was a side hustle that made extra cash
and that was just from too muchbucks, yeah.
So it's investing in theequipment, yeah, and it's
investing in yourself andlearning how to be able to
control your own destiny.
Speaker 2 (16:34):
Yeah, If you want to get some quick money well,
relatively quick money.
Learn how to edit video.
Yeah, Quickly learn how to dothat.
You can just do that on theside and if you're good at it,
you could charge a premiumbecause there's no set rate for
editing video.
How do I know this?
How do you know this Well?
Speaker 1 (16:55):
let's see.
Some genius cousin of mine gaveme the idea to go to Upwork.
Okay, I hired a video editor onthere.
This is not a knock on Upwork,no it has good stuff.
It does have good stuff, butthere is a saying the poor man
(17:16):
pays twice.
You pay peanuts, you getmonkeys.
Okay, so is that the saying?
I don't know.
You pay for peanuts, you'regoing to get monkeys, something
along the lines of that.
Speaker 2 (17:24):
Something along the lines of that.
But that makes sense to me.
I get what you mean.
You pay cheap, you get cheap.
Speaker 1 (17:29):
So it took two weeks for the video editing to come
through.
It took five or six reworks toget the video done and by the
time everything was completed,the video was so out of date and
so non-useful that I couldn't Icouldn't upload it to the
channel.
Yeah, it's useless at thatpoint.
So I wasted my time and moneyand money didn't get the product
(17:54):
that I wanted, and now I've gotan asset sitting at home back
from 2021 that I can never useit's like buying shoes you know
you buy cheap, you get likeyou'll.
Speaker 2 (18:02):
You're running through in three months, 100 and
you would just be.
Yeah, it was 60 bucks at thetime, but now you got to buy it
again.
Three months that's 120 bucks.
You could have bought just adecent pair of sneakers at that
point a million percent.
Speaker 1 (18:12):
So think about jobs that people need, jobs that are
valuable.
Okay, people all acrossaustralia have small businesses,
whether it be restaurants,whether it be mortgage
brokerages, yeah, whether it'sum, you know, law firms.
Every single one of these lawfirms, every single one of these
people accounts.
Every single one of thesepeople need some sort of
advertising.
And you highlighted videoediting.
(18:35):
Okay, you could charge apremium for video editing if you
get really good at it.
And the reason you can chargethat premium I've seen people
charge 200 300 an hour.
Yeah, for video editing.
That's solicitor level money atsome point, you know.
Speaker 2 (18:48):
Especially and what I like about those ones.
It's like, yeah, you're like,oh my God, that hourly rate's
crazy.
But then, because they're sogood at it, they're like, oh,
yeah, but I'll get it doneeither in the hour or two.
And you're like, oh, and at ahigh level as well.
Speaker 1 (19:01):
So imagine you get five of those clients a week.
Yeah, you get five hours a week.
Yeah, you do it on a Saturday.
That's an extra $1,000 inincome.
Speaker 2 (19:10):
Yeah, granted, that's not going to happen right off
the bat once you get started,but it's a goal, right.
Speaker 1 (19:14):
A hundred percent, but this is what I want to
highlight.
Let's say you are working as amarketing agent at the moment.
I think marketing is like thenumber one course taken at
university.
Speaker 2 (19:28):
I imagine it would be because there's a million
bloody jobs you can get.
Speaker 1 (19:31):
So I'm just going to you're a marketing agent.
You're on a base salary of$70,000.
Okay, $80,000.
Let's say $70,000.
Your tax rate at that point is22% for every dollar that you
earn over X amount.
Yeah, not an accountant, don'tcome to me.
All right for that sort ofstuff.
These are just roundaboutnumbers.
These are just roundaboutnumbers.
If you magically got yoursalary bumped up to 120 000,
(19:55):
okay, so from salary jump.
So from 70 to 120 000 yoursalary magically jumped up.
That doesn't mean yourtake-home income is going to
increase dramatically by thatmuch because you're hitting
different tax rates.
You're all of a sudden hittingthat tax rate of about 36%, 37%,
yeah.
Speaker 2 (20:14):
So that one hang on which one's stage, three Hang on
.
Speaker 1 (20:19):
I'll let you look it up.
You seem to be enjoying this.
Speaker 2 (20:21):
I do enjoy this.
Speaker 1 (20:22):
Taxes, oh, nothing gets me going more, but but if
you do start a company,companies all the way up to 50
million dollars in profit haveone tax rate, that's 25 on all
profit.
So instead of you being forcedto pay 37 46 tax, you can
(20:43):
instead bring that down to that25%.
So let's say you make $50,000.
Okay, 25% of that is $12,500.
So your take-home income fromstarting that company is $37,500
.
If your income shot up from$70,000 to $120,000, I can
guarantee you I'm not going torun the numbers right now, we
(21:03):
don't have that long of apodcast I can guarantee you it's
going to be less than that$37,500.
And the beautiful thing is, ifyou've got a gun accountant on
your side, they'll claim thedepreciation, they'll claim
interest, they'll claim allthese expenses that you were
going to pay anyway on yourbooks.
So you might actually take morethan $37,500 home.
Speaker 2 (21:25):
Yeah, especially because a lot of stuff is tax
deductible when it comes tobusinesses as well, like car
trips during business hours andthings like that.
Speaker 1 (21:33):
So let's bring this all back.
You highlighted something to me.
What does this extra $100 amonth mean?
That $100 a month means goinvest in your fucking self.
Okay, take a course, learn,okay.
Stop sitting on the couch andwaiting for shit to happen.
You control your destiny.
You need to go out there andyou need to learn, okay, and
(21:58):
upskill yourself so that you canbe in a better position to be
able to start demanding moremoney, to be able to start
creating more money, to be ableto start creating more money for
yourself.
And that's a ticket out.
That 0.25% interest rate okay,it might seem so small to the
general public.
They might just think I'msaving myself a little bit of
(22:19):
extra money.
There is one person inAustralia one out of the 27
million that has now takenadvantage of that little bit of
a break that they've gotten ontheir interest rate and they are
going to make themselves amulti-millionaire because of it.
Speaker 2 (22:34):
Very aspirational.
Sorry man, sorry, it was verygood.
Speaker 1 (22:38):
I just like people being able to take opportunities
and run with it.
I don't like people that justsit on.
Man, I've been on Reddit.
I've been on Reddit.
I've been on Reddit.
I've seen some of the stuffthat they complain about.
Man, I've seen people complainoh, my boss called me into a
Sunday shift and I had to dothis and I had to work four or
(23:01):
five hours.
I would never forget thisReddit thread.
I will never forget it.
There was a Woolies worker or aColes worker complaining.
Speaker 2 (23:08):
I think I saw this one.
Speaker 1 (23:11):
It was a couple of years ago.
Speaker 2 (23:12):
Okay, continue.
Speaker 1 (23:14):
There was a Coles or Woolies employee complaining
about a DoorDash driver comingin and asking him for where
certain groceries are Okay Topick up certain things.
Yeah, and he went on this500-word rant about why he
(23:35):
should not be helping DoorDashworkers pick up groceries.
And this is the perfect example.
Okay, doordash is aself-employed business.
Speaker 2 (23:42):
Yeah.
Speaker 1 (23:42):
Okay, when you're working DoorDash, you are a
contractor to DoorDash.
You've got your bike, okay,okay, you pay the fee to door
dash to be able to get thesedelivery jobs, yeah, okay.
But the more you work, the moremoney you can make.
That's a side hustle, right fora lot of people.
They'll do.
They'll do door dash, they'lldo uber those sorts of things so
that guy on one side has foundan opportunity.
(24:05):
He's making more money.
He's asked somebody at Wooliescan you just help me find these
apples so I can make sure I'm ontime for these people?
Whatever it was, the Wooliesworker was complaining.
He's like I don't know why theyhave to come to me and ask me
for these directions justbecause I work at Woolies.
They should be able to find itthemselves, all these sorts of
things.
I just worked a four-hour shift.
This is the issue.
You've got one person who isnow venting to an echo chamber.
(24:29):
Okay, because they have to dotheir job.
That was outlined when theysigned their employment contract
.
They actually have to adhere totheir roles and
responsibilities.
Speaker 2 (24:41):
Yeah, I used to work at Woolies and yeah, if a
customer which essentially thisDoorDash person is like, granted
it's more of a representativefor the actual paying customer
but it is.
He's still a customer at the endof the day.
Yeah, um, yeah, you've got tohelp them.
That's.
That's literally the job youhave the uniform on.
So, like I, if you're like, Iused to work in the online
(25:01):
department and like I'm, youknow I was um for for the
actually kind of these door dashdeliveries, um, but the wo
Woolies version and you're on atimer and everything and like
I'll help, but if they keepgoing, I'll find someone to go.
Hey, I need to keep doing this.
Can you help them if you've gottime?
If not, yeah, just do it, andthen I don't have to explain.
I was running the department.
Speaker 1 (25:22):
But do you see what I mean?
Like you've got two sides ofthe coin.
You've got somebody that'screating the opportunity and
then you've got somebody that'scomplaining.
Don't be the person that'scomplaining.
Don't be sitting there andsaying my boss hasn't given me a
raise.
Don't be sitting there beingthe person that's saying I'm not
earning enough money to go helpa door dash worker.
Be the person that's actuallycreating an opportunity for
themselves so that they don'thave to worry so much in the
(25:43):
future.
I can guarantee you, if thatWoolies person doesn't have a
change of heart and they don'tstart changing the way that they
think they're probably going tobe in debt for the rest of
their life, they could possiblybe living in rent for the rest
of their life.
Speaker 2 (25:54):
And now they'll probably be working at Woolies
for the rest of their life.
I know this because I knew them.
That sounded so much meanerthan I meant it to.
Speaker 1 (26:04):
And then you've got the DoorDash employee who
there's a good chance he's goingto buy a property soon.
You get a lot of DoorDashemployees.
A lot of the time they'reforeigners.
Yeah yeah, they can't find workin Australia because their
English isn't their strong pointNot amazing yeah, but guess
what?
They know the value of a dollar,they know the value of hard
work and they know what's goingto make them money.
(26:25):
And they're going to approachme and they're going to say, joe
, I want to buy a property.
And you know what I'm going todo.
I'm going to get them a fuckingmortgage.
And you know what happens whenI get them a mortgage, in a
year's time I'm going to see howmuch that property grew.
I'm going to tap into someequity there and I'm going to
get them another mortgage andthen possibly in 10 years time,
they might have All from what,taking the opportunity and not
(26:46):
sitting down and complaining on.
Speaker 2 (26:47):
Reddit.
That's actually a good question.
Do you actually get many Uberdrivers and stuff like that in
the books?
Not just Uber drivers, they'rethe sole income.
Speaker 1 (27:00):
Yeah, go on.
Lay it out.
Daddy's coming to work.
Speaker 2 (27:03):
All right, I think we need to highlight something.
Okay, I am Lebanese, let'sstart with that.
Speaker 1 (27:07):
I need to highlight something.
Okay, I am Lebanese.
Let's start with that.
I need to highlight anotherthing.
My uncle owns a taxi company.
Ah, okay, what do taxi driversa lot of them do on the side?
Are they Uber drivers?
They're Uber drivers as well.
What do accountants like to do?
That seems like very broken butokay, continue, no, no because
(27:28):
they don't have their own taxilicense.
They'll borrow a friend's car,and then they'll use their own
car for uber yeah, okay, thatmakes sense okay what is the
number one thing that every wogthinks about in australia when
it comes to tax?
Speaker 2 (27:44):
don't pay it?
Speaker 1 (27:44):
yeah, how to avoid it ?
How to avoid it, how to avoidtax and how can I make sure I
pay the least amount possible?
Yeah, yeah, that sounds aboutright so every week I get
someone that, yep, I want to buya two and a half million dollar
property Me, great.
(28:04):
Have you done your taxes?
No, okay, fantastic.
Have you done last year's taxes?
Yes, what was your net profit?
$12,000.
I can't help you.
As much as I would love to helpyou, you can't.
Speaker 2 (28:20):
Okay.
Speaker 1 (28:21):
And this is general advice again If you want to
borrow, pay your taxes, becausethe banks want to see you making
money, not losing money.
They want to see you making aprofit, not declaring everything
as an expense.
Yeah, okay, that is one thing Iwant to highlight.
Speaker 2 (28:39):
Because you've got to think about it from the bank's
perspective.
They're looking to get theirmoney back.
Yeah, if you don't look likelyto give them the money, they're
not going to give you the loan.
They get.
Speaker 1 (28:48):
I think the Australian mortgage market is in
the trillions.
Now I would be Absolutely.
Why wouldn't it be?
Speaker 2 (28:52):
No.
Speaker 1 (28:53):
I think it was like 50 trillion or something.
It was something absurd.
I can't remember the exactfigure.
Anz not approves this manymortgages discharges.
They discharge like 5,000mortgages a day.
Okay, 5 to 50,000.
I can't remember the exactfigure.
Okay, they discharge so manyloans.
Do you think that they aregoing to care?
(29:15):
And they're going to sit thereand look at your paperwork and
go, oh, you know what?
I know he makes cash on theside.
No, he's doing cashies.
I get it.
No, they're going to processyour application.
They're going to see if thenumbers stack up and if they
don't, they're going to put ared X on it.
They're going to send it backto me and it's going to give me
more work.
Pay your freaking taxes, people.
Okay, side hustle.
(29:36):
So roundabout answer Okay, yeah, 0.25% rate $100 extra.
Go start a side hustle.
Speaker 2 (29:54):
If you're going to go freaking taxes so you can
borrow more money.
That way we could get you aloan and that way we could
create for you more wealth inthe future.
Well, speaking of more wealthin the future, now, with this
rate cut, investors are going tobe looking where can I invest?
Now?
Corelogic has some ideas basedon data, and Sydney, melbourne,
will benefit from the rate cutby far the most.
The rest of the capital citiesthey're not really affected by
the cash rate as much, mostlybecause their property values
don't go up and down as greatLike Perth is more affected by
(30:16):
mining boom and busts.
So, for example, to get an idea, rich areas typically will fare
the best.
So, like Leichhardt,historically 1% rate cut, we'll
see property values rise by asmuch as 19, which is pretty
crazy.
Where do you think is a goodspot to start looking at
(30:37):
investments?
Because it does seem to be moretowards the wealthier areas.
It do well, I mean driven bythe data, but do you think
that's true?
Speaker 1 (30:44):
if you look, this is my opinion.
Yeah, this is all.
This is my opinion.
Yeah, this is all opinion.
This is opinion okay.
Anybody goes by property inthese areas and goes bust not my
fault, yeah, but this isopinion.
States, okay.
After doing a little bit moreresearch on the land tax rule in
Victoria, I still like Victoria, but Victoria is good for your
(31:04):
500 cases and others.
Speaker 2 (31:05):
Okay.
Speaker 1 (31:07):
The reason is the rental is still good.
You can still find placesaround melbourne that you would
be positively geared.
Okay, but unfortunately becauseof the land tax elements, I
think it's one percent everyyear.
It's something absurd.
I know someone that's got aproperty that's fully paid off.
(31:28):
Okay, well, he said this to meon the phone and it was his dad,
so I don't know how verifiedthe story is.
Something that was positivelygeared is now negatively geared
because of the new land taxelement that has come in.
Okay, yeah, so you have to putthat into consideration.
So, victoria, I don't haveenough data and I don't have
(31:48):
enough case studies to say thisis a strong opinion and this is
where I would go invest Sydney,however, yeah, I live here, I
know it.
If you look all along theNor-West I was trying to say
Nor-West and then I was tryingto say North-West and then went
Nor-West.
Speaker 2 (32:10):
Joe's developed a lisp.
Speaker 1 (32:13):
If you look all along the Northwest corridor or that
area, you've got the hills.
Cherrybrook, you know?
Northwest yeah, my old hood.
If you look at all the hotspotsfor the new zoning, it's all
there.
Okay, it's all there.
Speaker 2 (32:33):
Yeah, that makes sense because I remember even in
Glenore there's a tiny little.
It's all acreage there.
They're all big properties.
A lot of it used to be farmsand hobby farms and stuff like
that.
And in and around the shopsthere's a small like a suburbia
region where it's like normalhouses with medium backyards and
they were trying to put upapartments in and around the
(32:54):
shops, which got a lot of people, very NIMBYs basically got very
upset about it.
And yeah, I heard it wasspreading Castle Hill.
I watched that go up all aroundthem because the metro station
got put up there, huge apartmentbuildings going up there.
So yeah, from my own eyes I'veseen this, uh, these density
laws taking effect.
Speaker 1 (33:14):
I think those are the best areas to invest in in
Sydney right now.
Speaker 2 (33:16):
Yeah, and they're nice too.
Speaker 1 (33:19):
You can purchase at a reasonable price, but they're
still growing up.
They're still going up, yeah,and you will see, sydney has
invested the most in this area.
They have motorways to the city.
They've put the metro line in.
Yeah, I've been in the metro.
It's quick, it is fantastic.
Yeah, I took the metro from ouroffice in Barangaroo up to
(33:41):
Bella Vista.
Speaker 2 (33:42):
It took me 38 minutes .
Speaker 1 (33:44):
Yeah, it's really good.
It is so connected to Sydney CBDthat you are going to see so
many people move out that way.
And where do you invest?
Not where other people areinvesting or other people live
when people are purchasingowner-occupied properties.
Now, I know what I just saidwas counterproductive,
(34:07):
counterintuitive kind of thing,but people want to live in their
areas, they want to live inneighborhoods of familiarity,
they want to live where everyoneelse is living.
There is a chance that thatperson can't afford to buy yet.
Yeah, but they can afford torent.
So what you can do is look atthe houses in that area, look at
the townhouses, look at theapartments those are my key
(34:32):
areas right now to be able topurchase, especially with this
0.25% rate cut Chances are.
If you're purchasing in thatarea, you are on a higher
combined salary with you andyour partner than someone who is
not looking at that area,because you just go on
realestatecom and you can seethe area is expensive.
(34:52):
I was looking at Eastwood as asuburb Even during the boom of
the rates.
Okay, I'm talking when rateswent from.
We were doing fixed rates at1.99%.
Imagine we went from 1.99% to6.5% in a span of two years.
Eastwood still grew by 20 oddpercent as a suburb.
(35:18):
I saw properties that were $2million now gone for 2.6, $2.7
million.
It outgrew the rate.
It was remarkable because, eventhough it was more expensive to
borrow, people were stillinvesting in these areas.
So if you're going to look forareas that are going to grow the
(35:39):
most, look there.
Areas I think are going to growthe least okay where I live.
Speaker 2 (35:48):
So what down south Illawong?
Speaker 1 (35:50):
Manai menai patstow.
Patstow will actually do wellbangor, barden ridge um crinola
caring bar, and the reason isthey haven't invested in the
infrastructure in these areasokay, so the yeah, like there's
no metro coming out, there's nometro, there's no highway,
there's no motorway.
So I believe that if you do wantto invest in Sydney, go look at
(36:14):
those areas, go get yourself agirlfriend, get your combined
incomes and go yep, we're goingto buy a new spot, we're doing
this, yeah.
And if you're looking to goregional or you're looking to go
interstate, go to Queensland.
Speaker 2 (36:26):
Yeah.
Speaker 1 (36:29):
It's still going up.
Go to Victoria for one reasonyou have a lot of investors
exiting and you are able topurchase.
Yeah, you've got space foryourself.
You're able to purchase at alower level.
Yeah, and Victoria will comeback.
I always like to highlight this.
My business mentor his name isAdrian Hondros.
He's the former director of NABand CBA.
(36:53):
This guy knows his shit and hejust turned to me and he goes.
Victoria will have its comeback.
Of course it will.
Some government official isgoing to get in, they're going
to look at this land tax ruleand they're going to go.
This is rubbish.
Everywhere else in Australia isbenefiting, except for some
reason our properties are taxedat 1% wide because we don't like
investors.
Some government official isgoing to go in there and go fuck
(37:14):
socialism.
Let's actually make sure thatwhoever comes to Melbourne,
stays in Melbourne, invests inMelbourne.
We want to be the number onecity, because they do want to be
the number one city inAustralia.
Speaker 2 (37:24):
I mean it's always between Sydney and Melbourne
100% so anyone else who thinksthey're throwing their hat in
the room, he's kiddingthemselves.
Speaker 1 (37:30):
There's always different price points, but
those are my main takeawaysright now.
Right, okay.
Speaker 2 (37:36):
All right, well, to wrap this up, let's end it on a
fun one, and we'll do our clientprofile.
And now I've got a pretty funnyone that I found online from a
real estate agent and I'd liketo know your opinion on it.
Speaker 1 (37:47):
All right, just so you know, I've done no research
on this and Mark was going tojust throw a bloody curveball at
me.
Speaker 2 (37:52):
Yeah, I kept this one off.
So, all right, we've got acouple.
They're checking out a fewhouses in town.
The real estate agent has toldyou, joe, that the wife keeps
bringing a broom to each tour.
He thinks it's pretty strange.
So eventually the couple doesdiscover the perfect house and
the husband is really keen on it.
The problem is the wife hassaid no, why?
(38:13):
Well, the reason that she'sbeen bringing the broom is
because it tells her which houseis the right one, and it didn't
speak during the tour.
So it really is the perfecthouse for them and they have
pre-approval.
Do you try to convince the wifeor do you just sort of wash
your hands of this?
Now, allegedly, this is trueAllegedly, but you can't believe
everything you read on theinternet.
Speaker 1 (38:33):
You haven't thrown at me a borrowing scenario.
Speaker 2 (38:37):
You've thrown at me a crystal ball Because the
husband is keen.
So if you can technically makeinroads with him.
Speaker 1 (38:44):
So the Wicked Witch of the West has taken her broom.
She's gone to house one, housetwo.
I am then going to download theproperty reports, I'm going to
download the rental reports, I'mgoing to download the suburb
statistics and then I'm going topresent that to them.
I'm going to show them that ifwhere the broom didn't speak has
grown 18% more than where thebroom did speak, I'm going to
(39:06):
tell her, sweetie.
This is the one no, not this isthe one, because I can't say
that.
I can't say that.
Yep, that's true, but, sweetie,maybe you gotta put the broom
in a wood chipper, becauseproperty number one is going to
help you in the long term.
Speaker 2 (39:26):
Potentially, potentially in the long term.
Speaker 1 (39:29):
Don't ever throw a curveball like that at me again
when I saw that, I went.
Speaker 2 (39:37):
I don't even care if that's real, that's great,
that's hilarious.
Speaker 1 (39:40):
That's hilarious um, okay, all right, so well, that's
all the time we have today forthe finance show with joe yeah
as discussed.
If you or a friend familymember need help with your
mortgage, visit us atwwwitsimplecomau.
Book in a time with me.
Don't be calling me at 11 pm.
Like some of my clients, I'vegot to do an episode on invasion
(40:03):
of personal space.
I'll tell you that and we'll bemore than happy to assist you
with you or your financial needs.
As always, I'm joe I'm michael.
I'm not the schmo this week andwe'll see you on the next
episode.
Interest rates had not been that high for a very,
very long time From memory ofthe headlines.
Speaker 2 (00:06):
it was like 15 years.
Speaker 1 (00:07):
at least the Reserve Bank of Australia finally met
together and cut the interestrates by 0.25%.
Speaker 2 (00:16):
With the interest rates going down, will property
prices then go up again?
Will it balance out or willthey again exceed?
This is a pity.
Speaker 1 (00:23):
So I think it's.
I get young people coming to meall the time.
What should I invest in?
What's going to make me?
What's going to drive my wealth?
Should I invest in Bitcoin?
Should I invest in the stockmarket?
Should I do this?
I'm going to tell them shut thefuck up.
And the reason I'm going to saythat out loud is because
Australia is a growingpopulation.
(00:44):
There are a lot of individualshere competing for your job and
in order to be able to succeedin Australia truly, truly
succeed and make it to that nextlevel, you have to f***.
Speaker 2 (01:02):
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmo,and today we're going to talk
about why interest rates don'tmatter, if you're poor.
Speaker 1 (01:10):
You are not a schmo, I'm just going to highlight this
.
So we've done about, you know,20 episodes now 20 or so yeah.
And Michael's been callinghimself a schmo for quite a
while.
But look at him today he'swearing a nice black shirt.
He looks quite corporate.
He's a homeowner.
Speaker 2 (01:26):
This is true.
This is true.
Who has?
Speaker 1 (01:28):
recently completed his renovations.
Speaker 2 (01:30):
Uh, yeah, yeah, Still got to put in the TV racks, but
it's done.
It's on the low priority list.
Speaker 1 (01:36):
It's um at your age.
Speaker 2 (01:38):
Not many people would be able to achieve that no, and
I was able to, because of myentire family.
Speaker 1 (01:48):
I understand, but don't sell yourself short.
Oh, thank you, because you werestill able to contribute
towards it and you were stillpaying off your mortgage and
you're doing some amazing things, and the reason I wanted to
bring that up is because youentered the mortgage market when
it was at its toughest.
Yeah, it wasn't wasn't a goodspot it was not, so I believe
(02:09):
that we got you an interest rateof six point I think six point
three, five or six point four,something around there it was
somewhere around there.
Yeah, interest rates had notbeen that high for a very, very
long memory.
Speaker 2 (02:23):
the headlines it was like 15 years, at least
something like that, Since Ithink it was the GFC that makes
sense right.
Speaker 1 (02:29):
Somewhere along there .
Last time, inflation was crazy,that's right, and it was rather
remarkable that you and yourfamily were able to get together
to be able to purchase aproperty.
Speaker 2 (02:40):
We also had a star broker Definitely helped make it
all happen.
Speaker 1 (02:46):
That's a cheap plug.
That's a cheap plug, but thereason I wanted to bring that up
is the headline of today'sepisode.
Yeah, the Reserve Bank ofAustralia finally met together
and cut the interest rates by0.25%.
Speaker 2 (03:01):
Yeah, which is good news for homeowners across
Australia.
Speaker 1 (03:04):
It's good news for homeowners.
It's good news for first-timebuyers.
It's good news for first-timeinvestors, people who are
looking to finally break intothe market.
People are going to hear andthey're going to read a lot of
headlines in regards to how muchdoes 0.25% actually affect me?
Yeah, yeah, if you've got theaverage mortgage in New South
Wales, you're saving about $180.
(03:26):
Something around that.
Yeah, max per month.
Yeah, what's $180 a month?
$180 a month.
Multiply that by 12.
You're looking at about $2,160.
Something like that.
$2,160 a year is not a hugeamount in the grand scheme of
things, considering.
Groceries cost you $300 a week.
Speaker 2 (03:47):
Yeah, exactly, I mean , in one sense it does help with
said grocery bill.
You've got an extra $180 amonth to put towards that
grocery Again.
How much does that changethings?
Not sure yeah.
Speaker 1 (03:59):
But it's how much more borrowing capacity you have
, and this is something I wantedto highlight in today's episode
.
I've seen a plethora.
Speaker 2 (04:11):
Good word You're the journalist.
Speaker 1 (04:14):
I've seen the people jumping online and being like
it's only a 0.25% rate cut.
Why are brokers celebrating?
Now, anybody that knows mypersonality I'm the freaking
wolf of wall street when itcomes to this shit you should
have seen the day the rates weredropped.
Speaker 2 (04:30):
You would have popped champagne if you could however.
Speaker 1 (04:34):
However, it isn't so much about the money that we are
saving.
It's the opportunity that iscreated.
It's the opportunity that'screated for first-time buyers.
It's the opportunity that'screated for first-time buyers.
It's the opportunity that'screated for first-time investors
.
It's the possibility that'screated from this.
So I crunched the numbers as Ido.
If you are a first-time buyer,okay, you are purchasing your
(04:57):
first property in New SouthWales and you are going for all
the schemes the first-homeguarantee, the first-home
owner's grant and you knowyou've got a 5% to 10% deposit
and you really want to tap intothe market Because of these
0.25% interest rate cuts.
Okay, and let's say you've gotthe median salary in New South
Wales, which is roughly $95,000to $98,000, you can borrow
(05:19):
$12,000 to $14,000 more, Okay.
So as opposed to thinking abouthow much you're going to be
saving, it's about how much moreyou can achieve.
I've seen people be priced outof purchasing apartments because
they couldn't make up thatextra $10,000.
Look what you got in yourpocket now Exactly.
(05:41):
So now there is more capability,there are more options to
explore.
Yeah, If you are purchasing aninvestment, it increases even
further.
I don't know why.
This is just how these mortgagecalculators work.
Okay, but if you are purchasingan investment, this is
including your notional rent.
For our listeners that don'tknow what notional rent is, the
bank considers that you'repaying your parents rent of $650
(06:02):
a month.
Speaker 2 (06:03):
Really Like if you live at home.
They think you're paying rent.
Yep.
Speaker 1 (06:06):
They didn't do the study on what kids I was going
to say but so there's notionalrent.
There's quite a lot of things,but we've included that.
We included the rental income,the possible negative gearing,
all those items.
You can borrow $15,000 to$20,000 more, okay.
So on one side you can borrow,you know, you go from $600,000
(06:29):
to $615,000 in borrowing.
On the other side, if you'reinvesting, you're going from
$800,000 to $820,000.
Okay, so that opens up a worldof possibility for you if you
are looking to purchase property.
The exact same time, interestrates were cut.
The government also releasedtheir low to medium residential
(06:50):
housing scheme, where theyhighlighted all of these little
hotspots all across New SouthWales that you would now be able
to build more apartments morehomes, density laws have changed
and stuff like that.
Speaker 2 (07:02):
That's correct.
Speaker 1 (07:03):
So what they've done is they've opened up the
opportunity for people likeyourself two years ago, your
sister a couple years ago, avideographer, liam.
Speaker 2 (07:14):
Anyone who is in that age graph age Everyone in their
late 20s and early 30s,basically.
Speaker 1 (07:20):
You took the words right out of my mouth, but what
they did is they opened it allup for them to be able to
purchase, and not only purchasea property, but purchase in New
South Wales, yeah, and have thatopportunity to be able to grow
again.
Speaker 2 (07:33):
Yeah and that's really good.
But just counter to that, withthe interest rates going down,
will property prices then go upagain and will that change?
Will it balance out or willthey again exceed?
Like you know, you get extramoney now, like extra 15K.
Will property prices go up pastthat point?
Speaker 1 (07:49):
I don't think so.
Okay, and this is opinion, thegovernment came in and they've
put a two-year ban on foreignersbeing able to invest in
existing properties.
Yes, I heard that All acrossAustralia.
Okay, that makes sense.
So that's the first thing thathas come in to prevent, like, a
huge property price surge.
(08:10):
Yeah, that's the first thing.
The second thing is the effectof high interest rates over the
last two years.
Okay, because interest rateswere so high.
What did we see in that time?
We saw coals and wool wordsincrease their prices because of
production line bullshit andinterest trades.
Still don't really know whythey did it, but sure Nobody
knows the reason why.
(08:31):
We've seen restaurants increasetheir prices.
We've seen I bought a bottle ofwater from McDonald's the other
day and it was like $4.55.
Because of all these increasesin prices, the savings has
dwindled.
So the average amount ofsavings that somebody in New
South Wales had in 2022 was$36,000, $37,000.
(08:55):
Huge amount of money.
That's five figures In 2024,that is around $31,000.
Now listeners might be sittingthere and thinking to themselves
that's a $5,000 difference.
It's not that big.
But wait, because of inflation,your $31,000 is actually worth
less than what it would havebeen two years ago.
(09:16):
Yes, yes, yes, because the costof goods, the cost of living,
has gone up so high.
So I don't think that propertyprices are immediately going to
boom again.
And I think I made a reel ofthis the other day.
I specifically highlighted thefact that because genuine
savings, or savings in general,are down, you're not going to
see an immediate rush to auction.
(09:38):
You're not going to see animmediate explosion of property
prices.
It will go back up.
It's Australia, we are ablue-collar country and
everything is based on propertyEvery barbecue, everywhere you
go.
I'm doing this, I'm building agranny flat, I'm doing a duplex.
Speaker 2 (09:55):
You've heard it a million times.
Speaker 1 (09:58):
It is the ticket to be able to create wealth in
Australia.
Speaker 2 (10:02):
Property is the way, especially generational wealth
as well, if you want it for yourkids.
Speaker 1 (10:05):
Very easy to pass that on 100%, but it's not going
to be an immediate boom.
Okay, especially becausethey're increasing the supply of
housing, as mentioned earlieryeah, and at the exact same time
, they've cut the foreigninvestors for existing
properties.
Yeah, the genuine savingsaren't built up, so I actually
think there's going to beanother rate cut.
Well aren't built up.
Speaker 2 (10:31):
Yeah, so I actually think, there's going to be
another rate cut.
Speaker 1 (10:32):
Well, there is predicted to be at least two,
even though the rba said like,oh, don't you know, don't bet on
it.
I think they're always going tosay that.
Well, not necessarily afterphilip lowe's.
Uh, yeah, you know, interestrates won't go up for this
period of time yeah, you knowwhat?
Speaker 2 (10:40):
yeah, take it back.
Speaker 1 (10:41):
Yeah, I think they're being very cautious yeah and
selective with their wording.
Speaker 2 (10:46):
now, that's smart from a PR point of view, you
don't have a potato on TV goingno, interest rates aren't going
to go up.
Speaker 1 (10:52):
Everybody going out and buying property and then all
of a sudden, I can't afford myproperty.
This is the RBA's fault.
So it's actually superinteresting.
But there's two sides of thecoin of the interest rates going
down.
It's opportunities being openfor people that are looking to
create that wealth yeah and thenthere's opportunities being
created for people looking tosave money at the exact same
(11:15):
time explain to me the savingsthing.
Speaker 2 (11:16):
What do you mean by that?
Speaker 1 (11:18):
if you've already got a mortgage, you're now a
hundred hundred eighty dollars amonth in the clear.
Okay, that might be one and ahalf to $2,000 a year in savings
on a mortgage.
What if you have fourinvestment properties?
Speaker 2 (11:31):
Well, that's all going to add up, isn't it
Exactly?
Speaker 1 (11:34):
Yeah, what if you were the type of person that at
the age of 40, 45, you've builtup a property portfolio and I'm
not saying you've got a house inDover Heights, you've got a
house in You've portfolio andI'm not saying you've got a
house in dover heights.
You've got a house in.
You've just got multipleproperties.
You've got multiple.
You could have bought regional,you could have brought rule,
you could have bought tassie,queensland, kingswood,
everywhere, yeah.
(11:54):
So the savings that you havenow it's not a hundred dollars a
month, it's four hundreddollars a month.
Speaker 2 (11:58):
Yeah, that's five thousand dollars a year yeah,
because even if you've got likethis is and this is goes back to
what I was saying at thebeginning of the episode the
rate cuts don't matter too muchwhen you're poor, because and I
honestly I say that more as ragebait, let's, let's be clear
because it does make adifference, especially, you know
, especially with grocery billsand cost of living going up.
(12:20):
It does make a difference.
But who it's really making adifference before is like, if
you've got a two million dollarproperty, you're paying $12,500
per month right now.
Now, with the rate cut, likeyou said, that's $400 in your
pocket.
Speaker 1 (12:32):
There's a whole subsection of people that I do
want to discuss, and that'sbusiness owners.
Now, you know, we're doing abit of prep for this podcast and
Michael's asked me, you know,for someone who's a little bit
younger, between the age of 25to 30 yeah, they've bought a
(12:52):
property.
They can now save a hundreddollars a month.
What can they do with thatextra hundred dollars a month?
Yeah, I will add on top of thatwhat can they do with that
extra 14, 15 000 a year thatthey could borrow?
One thing I always want tohighlight australia is a growing
population.
Yeah, always.
There are a lot of individualshere competing for your job, and
(13:15):
in order to be able to succeedin australia truly, truly
succeed and make it to that nextlevel, you have to own your own
business.
You can be on as high of asalary as you want.
You could be on a $200,000,$300,000 a year salary.
You know what happens when youenter those brackets it's the
taxes.
Right, correct?
So I think it's after $149,999,somewhere along the lines of
(13:41):
that you start getting taxed ata rate of 46% on every dollar
that you earn past that.
So you might be on a greatsalary.
You might be on $150,000 a yearand then you get $200,000 a
year bonuses, whatever.
You could be a solicitor, youcould be one of these people.
Yeah, what ends up happening isyou will get smashed on tax.
(14:01):
Okay, I'm going to advisesomething right now.
The advice on this channel isgeneral in nature and not
specific to you or yourcircumstance, and if you do need
any specific advice, pleaseconsult a finance professional.
Yeah, financial advisor,accountant, someone along the
lines of that.
So I get young people coming tome all the time.
What?
Speaker 2 (14:19):
should.
Speaker 1 (14:19):
I invest in?
What's going to make me money,what's going to drive my wealth?
Should I invest in Bitcoin?
Should I invest in the stockmarket?
Should I do this?
I'm going to tell them shut thefuck up.
And I'm just going to say thatout loud.
And the reason I'm going to saythat out loud is because if you
(14:41):
buy $1,000 in Bitcoin right nowand it goes up 20% in a year
We've seen Bitcoin do this inthe past yeah, 100.
How much more money is that?
200?
200, yeah, what's 200 going todo for you in the grand scheme
of things?
By the time inflation comesaround and everything, guess
what you might?
Might have bought yourself a,an extra cart of groceries.
(15:03):
Yeah, okay, then you're gonnaget the bitcoin, bro saying, oh,
it's long-term investment.
I'm not saying Bitcoin is badfor once.
What I'm trying to say is that$1,000 might be better well
spent.
Speaker 2 (15:14):
Yeah, yeah, like better return somewhere else,
yeah.
Speaker 1 (15:17):
Invest in yourself.
Yeah, invest in yourself andcreate a business, and I'm going
to highlight two reasons why.
When you can depend on yourselfand you can make yourself a
living okay, you are not underthe control or the direction of
(15:38):
someone else yeah, you are ableto create this wealth for
yourself.
At the exact same time, and youcan get started with something
as simple as a laptop, fewpieces of software and you can
start yourself a side hustle.
Now, what that side hustle is,that's 100% up to you, but I've
seen people turn side hustlesinto six-figure businesses.
Speaker 2 (15:59):
Yeah, I mean, you look at a lot of YouTube
channels.
A lot of them start as likeyeah, I had a couple, you know,
I saw one person that said theirparents gave them a challenge,
turned $200 into $1,000.
So they bought some cheapcamera equipment and some
editing software.
They already had a laptop, yeah, and they started a YouTube
channel and off it went and theymade enough money, like it
(16:20):
wasn't their only job but it wasa side hustle that made extra
cash.
And that was just from $200.
Speaker 1 (16:26):
Yeah, but it was a side hustle that made extra cash
and that was just from too muchbucks, yeah.
So it's investing in theequipment, yeah, and it's
investing in yourself andlearning how to be able to
control your own destiny.
Speaker 2 (16:34):
Yeah, If you want to get some quick money well,
relatively quick money.
Learn how to edit video.
Yeah, Quickly learn how to dothat.
You can just do that on theside and if you're good at it,
you could charge a premiumbecause there's no set rate for
editing video.
How do I know this?
How do you know this Well?
Speaker 1 (16:55):
let's see.
Some genius cousin of mine gaveme the idea to go to Upwork.
Okay, I hired a video editor onthere.
This is not a knock on Upwork,no it has good stuff.
It does have good stuff, butthere is a saying the poor man
(17:16):
pays twice.
You pay peanuts, you getmonkeys.
Okay, so is that the saying?
I don't know.
You pay for peanuts, you'regoing to get monkeys, something
along the lines of that.
Speaker 2 (17:24):
Something along the lines of that.
But that makes sense to me.
I get what you mean.
You pay cheap, you get cheap.
Speaker 1 (17:29):
So it took two weeks for the video editing to come
through.
It took five or six reworks toget the video done and by the
time everything was completed,the video was so out of date and
so non-useful that I couldn't Icouldn't upload it to the
channel.
Yeah, it's useless at thatpoint.
So I wasted my time and moneyand money didn't get the product
(17:54):
that I wanted, and now I've gotan asset sitting at home back
from 2021 that I can never useit's like buying shoes you know
you buy cheap, you get likeyou'll.
Speaker 2 (18:02):
You're running through in three months, 100 and
you would just be.
Yeah, it was 60 bucks at thetime, but now you got to buy it
again.
Three months that's 120 bucks.
You could have bought just adecent pair of sneakers at that
point a million percent.
Speaker 1 (18:12):
So think about jobs that people need, jobs that are
valuable.
Okay, people all acrossaustralia have small businesses,
whether it be restaurants,whether it be mortgage
brokerages, yeah, whether it'sum, you know, law firms.
Every single one of these lawfirms, every single one of these
people accounts.
Every single one of thesepeople need some sort of
advertising.
And you highlighted videoediting.
(18:35):
Okay, you could charge apremium for video editing if you
get really good at it.
And the reason you can chargethat premium I've seen people
charge 200 300 an hour.
Yeah, for video editing.
That's solicitor level money atsome point, you know.
Speaker 2 (18:48):
Especially and what I like about those ones.
It's like, yeah, you're like,oh my God, that hourly rate's
crazy.
But then, because they're sogood at it, they're like, oh,
yeah, but I'll get it doneeither in the hour or two.
And you're like, oh, and at ahigh level as well.
Speaker 1 (19:01):
So imagine you get five of those clients a week.
Yeah, you get five hours a week.
Yeah, you do it on a Saturday.
That's an extra $1,000 inincome.
Speaker 2 (19:10):
Yeah, granted, that's not going to happen right off
the bat once you get started,but it's a goal, right.
Speaker 1 (19:14):
A hundred percent, but this is what I want to
highlight.
Let's say you are working as amarketing agent at the moment.
I think marketing is like thenumber one course taken at
university.
Speaker 2 (19:28):
I imagine it would be because there's a million
bloody jobs you can get.
Speaker 1 (19:31):
So I'm just going to you're a marketing agent.
You're on a base salary of$70,000.
Okay, $80,000.
Let's say $70,000.
Your tax rate at that point is22% for every dollar that you
earn over X amount.
Yeah, not an accountant, don'tcome to me.
All right for that sort ofstuff.
These are just roundaboutnumbers.
These are just roundaboutnumbers.
If you magically got yoursalary bumped up to 120 000,
(19:55):
okay, so from salary jump.
So from 70 to 120 000 yoursalary magically jumped up.
That doesn't mean yourtake-home income is going to
increase dramatically by thatmuch because you're hitting
different tax rates.
You're all of a sudden hittingthat tax rate of about 36%, 37%,
yeah.
Speaker 2 (20:14):
So that one hang on which one's stage, three Hang on
.
Speaker 1 (20:19):
I'll let you look it up.
You seem to be enjoying this.
Speaker 2 (20:21):
I do enjoy this.
Speaker 1 (20:22):
Taxes, oh, nothing gets me going more, but but if
you do start a company,companies all the way up to 50
million dollars in profit haveone tax rate, that's 25 on all
profit.
So instead of you being forcedto pay 37 46 tax, you can
(20:43):
instead bring that down to that25%.
So let's say you make $50,000.
Okay, 25% of that is $12,500.
So your take-home income fromstarting that company is $37,500
.
If your income shot up from$70,000 to $120,000, I can
guarantee you I'm not going torun the numbers right now, we
(21:03):
don't have that long of apodcast I can guarantee you it's
going to be less than that$37,500.
And the beautiful thing is, ifyou've got a gun accountant on
your side, they'll claim thedepreciation, they'll claim
interest, they'll claim allthese expenses that you were
going to pay anyway on yourbooks.
So you might actually take morethan $37,500 home.
Speaker 2 (21:25):
Yeah, especially because a lot of stuff is tax
deductible when it comes tobusinesses as well, like car
trips during business hours andthings like that.
Speaker 1 (21:33):
So let's bring this all back.
You highlighted something to me.
What does this extra $100 amonth mean?
That $100 a month means goinvest in your fucking self.
Okay, take a course, learn,okay.
Stop sitting on the couch andwaiting for shit to happen.
You control your destiny.
You need to go out there andyou need to learn, okay, and
(21:58):
upskill yourself so that you canbe in a better position to be
able to start demanding moremoney, to be able to start
creating more money, to be ableto start creating more money for
yourself.
And that's a ticket out.
That 0.25% interest rate okay,it might seem so small to the
general public.
They might just think I'msaving myself a little bit of
(22:19):
extra money.
There is one person inAustralia one out of the 27
million that has now takenadvantage of that little bit of
a break that they've gotten ontheir interest rate and they are
going to make themselves amulti-millionaire because of it.
Speaker 2 (22:34):
Very aspirational.
Sorry man, sorry, it was verygood.
Speaker 1 (22:38):
I just like people being able to take opportunities
and run with it.
I don't like people that justsit on.
Man, I've been on Reddit.
I've been on Reddit.
I've been on Reddit.
I've seen some of the stuffthat they complain about.
Man, I've seen people complainoh, my boss called me into a
Sunday shift and I had to dothis and I had to work four or
(23:01):
five hours.
I would never forget thisReddit thread.
I will never forget it.
There was a Woolies worker or aColes worker complaining.
Speaker 2 (23:08):
I think I saw this one.
Speaker 1 (23:11):
It was a couple of years ago.
Speaker 2 (23:12):
Okay, continue.
Speaker 1 (23:14):
There was a Coles or Woolies employee complaining
about a DoorDash driver comingin and asking him for where
certain groceries are Okay Topick up certain things.
Yeah, and he went on this500-word rant about why he
(23:35):
should not be helping DoorDashworkers pick up groceries.
And this is the perfect example.
Okay, doordash is aself-employed business.
Speaker 2 (23:42):
Yeah.
Speaker 1 (23:42):
Okay, when you're working DoorDash, you are a
contractor to DoorDash.
You've got your bike, okay,okay, you pay the fee to door
dash to be able to get thesedelivery jobs, yeah, okay.
But the more you work, the moremoney you can make.
That's a side hustle, right fora lot of people.
They'll do.
They'll do door dash, they'lldo uber those sorts of things so
that guy on one side has foundan opportunity.
(24:05):
He's making more money.
He's asked somebody at Wooliescan you just help me find these
apples so I can make sure I'm ontime for these people?
Whatever it was, the Wooliesworker was complaining.
He's like I don't know why theyhave to come to me and ask me
for these directions justbecause I work at Woolies.
They should be able to find itthemselves, all these sorts of
things.
I just worked a four-hour shift.
This is the issue.
You've got one person who isnow venting to an echo chamber.
(24:29):
Okay, because they have to dotheir job.
That was outlined when theysigned their employment contract
.
They actually have to adhere totheir roles and
responsibilities.
Speaker 2 (24:41):
Yeah, I used to work at Woolies and yeah, if a
customer which essentially thisDoorDash person is like, granted
it's more of a representativefor the actual paying customer
but it is.
He's still a customer at the endof the day.
Yeah, um, yeah, you've got tohelp them.
That's.
That's literally the job youhave the uniform on.
So, like I, if you're like, Iused to work in the online
(25:01):
department and like I'm, youknow I was um for for the
actually kind of these door dashdeliveries, um, but the wo
Woolies version and you're on atimer and everything and like
I'll help, but if they keepgoing, I'll find someone to go.
Hey, I need to keep doing this.
Can you help them if you've gottime?
If not, yeah, just do it, andthen I don't have to explain.
I was running the department.
Speaker 1 (25:22):
But do you see what I mean?
Like you've got two sides ofthe coin.
You've got somebody that'screating the opportunity and
then you've got somebody that'scomplaining.
Don't be the person that'scomplaining.
Don't be sitting there andsaying my boss hasn't given me a
raise.
Don't be sitting there beingthe person that's saying I'm not
earning enough money to go helpa door dash worker.
Be the person that's actuallycreating an opportunity for
themselves so that they don'thave to worry so much in the
(25:43):
future.
I can guarantee you, if thatWoolies person doesn't have a
change of heart and they don'tstart changing the way that they
think they're probably going tobe in debt for the rest of
their life, they could possiblybe living in rent for the rest
of their life.
Speaker 2 (25:54):
And now they'll probably be working at Woolies
for the rest of their life.
I know this because I knew them.
That sounded so much meanerthan I meant it to.
Speaker 1 (26:04):
And then you've got the DoorDash employee who
there's a good chance he's goingto buy a property soon.
You get a lot of DoorDashemployees.
A lot of the time they'reforeigners.
Yeah yeah, they can't find workin Australia because their
English isn't their strong pointNot amazing yeah, but guess
what?
They know the value of a dollar,they know the value of hard
work and they know what's goingto make them money.
(26:25):
And they're going to approachme and they're going to say, joe
, I want to buy a property.
And you know what I'm going todo.
I'm going to get them a fuckingmortgage.
And you know what happens whenI get them a mortgage, in a
year's time I'm going to see howmuch that property grew.
I'm going to tap into someequity there and I'm going to
get them another mortgage andthen possibly in 10 years time,
they might have All from what,taking the opportunity and not
(26:46):
sitting down and complaining on.
Speaker 2 (26:47):
Reddit.
That's actually a good question.
Do you actually get many Uberdrivers and stuff like that in
the books?
Not just Uber drivers, they'rethe sole income.
Speaker 1 (27:00):
Yeah, go on.
Lay it out.
Daddy's coming to work.
Speaker 2 (27:03):
All right, I think we need to highlight something.
Okay, I am Lebanese, let'sstart with that.
Speaker 1 (27:07):
I need to highlight something.
Okay, I am Lebanese.
Let's start with that.
I need to highlight anotherthing.
My uncle owns a taxi company.
Ah, okay, what do taxi driversa lot of them do on the side?
Are they Uber drivers?
They're Uber drivers as well.
What do accountants like to do?
That seems like very broken butokay, continue, no, no because
(27:28):
they don't have their own taxilicense.
They'll borrow a friend's car,and then they'll use their own
car for uber yeah, okay, thatmakes sense okay what is the
number one thing that every wogthinks about in australia when
it comes to tax?
Speaker 2 (27:44):
don't pay it?
Speaker 1 (27:44):
yeah, how to avoid it ?
How to avoid it, how to avoidtax and how can I make sure I
pay the least amount possible?
Yeah, yeah, that sounds aboutright so every week I get
someone that, yep, I want to buya two and a half million dollar
property Me, great.
(28:04):
Have you done your taxes?
No, okay, fantastic.
Have you done last year's taxes?
Yes, what was your net profit?
$12,000.
I can't help you.
As much as I would love to helpyou, you can't.
Speaker 2 (28:20):
Okay.
Speaker 1 (28:21):
And this is general advice again If you want to
borrow, pay your taxes, becausethe banks want to see you making
money, not losing money.
They want to see you making aprofit, not declaring everything
as an expense.
Yeah, okay, that is one thing Iwant to highlight.
Speaker 2 (28:39):
Because you've got to think about it from the bank's
perspective.
They're looking to get theirmoney back.
Yeah, if you don't look likelyto give them the money, they're
not going to give you the loan.
They get.
Speaker 1 (28:48):
I think the Australian mortgage market is in
the trillions.
Now I would be Absolutely.
Why wouldn't it be?
Speaker 2 (28:52):
No.
Speaker 1 (28:53):
I think it was like 50 trillion or something.
It was something absurd.
I can't remember the exactfigure.
Anz not approves this manymortgages discharges.
They discharge like 5,000mortgages a day.
Okay, 5 to 50,000.
I can't remember the exactfigure.
Okay, they discharge so manyloans.
Do you think that they aregoing to care?
(29:15):
And they're going to sit thereand look at your paperwork and
go, oh, you know what?
I know he makes cash on theside.
No, he's doing cashies.
I get it.
No, they're going to processyour application.
They're going to see if thenumbers stack up and if they
don't, they're going to put ared X on it.
They're going to send it backto me and it's going to give me
more work.
Pay your freaking taxes, people.
Okay, side hustle.
(29:36):
So roundabout answer Okay, yeah, 0.25% rate $100 extra.
Go start a side hustle.
Speaker 2 (29:54):
If you're going to go freaking taxes so you can
borrow more money.
That way we could get you aloan and that way we could
create for you more wealth inthe future.
Well, speaking of more wealthin the future, now, with this
rate cut, investors are going tobe looking where can I invest?
Now?
Corelogic has some ideas basedon data, and Sydney, melbourne,
will benefit from the rate cutby far the most.
The rest of the capital citiesthey're not really affected by
the cash rate as much, mostlybecause their property values
don't go up and down as greatLike Perth is more affected by
(30:16):
mining boom and busts.
So, for example, to get an idea, rich areas typically will fare
the best.
So, like Leichhardt,historically 1% rate cut, we'll
see property values rise by asmuch as 19, which is pretty
crazy.
Where do you think is a goodspot to start looking at
(30:37):
investments?
Because it does seem to be moretowards the wealthier areas.
It do well, I mean driven bythe data, but do you think
that's true?
Speaker 1 (30:44):
if you look, this is my opinion.
Yeah, this is all.
This is my opinion.
Yeah, this is all opinion.
This is opinion okay.
Anybody goes by property inthese areas and goes bust not my
fault, yeah, but this isopinion.
States, okay.
After doing a little bit moreresearch on the land tax rule in
Victoria, I still like Victoria, but Victoria is good for your
(31:04):
500 cases and others.
Speaker 2 (31:05):
Okay.
Speaker 1 (31:07):
The reason is the rental is still good.
You can still find placesaround melbourne that you would
be positively geared.
Okay, but unfortunately becauseof the land tax elements, I
think it's one percent everyyear.
It's something absurd.
I know someone that's got aproperty that's fully paid off.
(31:28):
Okay, well, he said this to meon the phone and it was his dad,
so I don't know how verifiedthe story is.
Something that was positivelygeared is now negatively geared
because of the new land taxelement that has come in.
Okay, yeah, so you have to putthat into consideration.
So, victoria, I don't haveenough data and I don't have
(31:48):
enough case studies to say thisis a strong opinion and this is
where I would go invest Sydney,however, yeah, I live here, I
know it.
If you look all along theNor-West I was trying to say
Nor-West and then I was tryingto say North-West and then went
Nor-West.
Speaker 2 (32:10):
Joe's developed a lisp.
Speaker 1 (32:13):
If you look all along the Northwest corridor or that
area, you've got the hills.
Cherrybrook, you know?
Northwest yeah, my old hood.
If you look at all the hotspotsfor the new zoning, it's all
there.
Okay, it's all there.
Speaker 2 (32:33):
Yeah, that makes sense because I remember even in
Glenore there's a tiny little.
It's all acreage there.
They're all big properties.
A lot of it used to be farmsand hobby farms and stuff like
that.
And in and around the shopsthere's a small like a suburbia
region where it's like normalhouses with medium backyards and
they were trying to put upapartments in and around the
(32:54):
shops, which got a lot of people, very NIMBYs basically got very
upset about it.
And yeah, I heard it wasspreading Castle Hill.
I watched that go up all aroundthem because the metro station
got put up there, huge apartmentbuildings going up there.
So yeah, from my own eyes I'veseen this, uh, these density
laws taking effect.
Speaker 1 (33:14):
I think those are the best areas to invest in in
Sydney right now.
Speaker 2 (33:16):
Yeah, and they're nice too.
Speaker 1 (33:19):
You can purchase at a reasonable price, but they're
still growing up.
They're still going up, yeah,and you will see, sydney has
invested the most in this area.
They have motorways to the city.
They've put the metro line in.
Yeah, I've been in the metro.
It's quick, it is fantastic.
Yeah, I took the metro from ouroffice in Barangaroo up to
(33:41):
Bella Vista.
Speaker 2 (33:42):
It took me 38 minutes .
Speaker 1 (33:44):
Yeah, it's really good.
It is so connected to Sydney CBDthat you are going to see so
many people move out that way.
And where do you invest?
Not where other people areinvesting or other people live
when people are purchasingowner-occupied properties.
Now, I know what I just saidwas counterproductive,
(34:07):
counterintuitive kind of thing,but people want to live in their
areas, they want to live inneighborhoods of familiarity,
they want to live where everyoneelse is living.
There is a chance that thatperson can't afford to buy yet.
Yeah, but they can afford torent.
So what you can do is look atthe houses in that area, look at
the townhouses, look at theapartments those are my key
(34:32):
areas right now to be able topurchase, especially with this
0.25% rate cut Chances are.
If you're purchasing in thatarea, you are on a higher
combined salary with you andyour partner than someone who is
not looking at that area,because you just go on
realestatecom and you can seethe area is expensive.
(34:52):
I was looking at Eastwood as asuburb Even during the boom of
the rates.
Okay, I'm talking when rateswent from.
We were doing fixed rates at1.99%.
Imagine we went from 1.99% to6.5% in a span of two years.
Eastwood still grew by 20 oddpercent as a suburb.
(35:18):
I saw properties that were $2million now gone for 2.6, $2.7
million.
It outgrew the rate.
It was remarkable because, eventhough it was more expensive to
borrow, people were stillinvesting in these areas.
So if you're going to look forareas that are going to grow the
(35:39):
most, look there.
Areas I think are going to growthe least okay where I live.
Speaker 2 (35:48):
So what down south Illawong?
Speaker 1 (35:50):
Manai menai patstow.
Patstow will actually do wellbangor, barden ridge um crinola
caring bar, and the reason isthey haven't invested in the
infrastructure in these areasokay, so the yeah, like there's
no metro coming out, there's nometro, there's no highway,
there's no motorway.
So I believe that if you do wantto invest in Sydney, go look at
(36:14):
those areas, go get yourself agirlfriend, get your combined
incomes and go yep, we're goingto buy a new spot, we're doing
this, yeah.
And if you're looking to goregional or you're looking to go
interstate, go to Queensland.
Speaker 2 (36:26):
Yeah.
Speaker 1 (36:29):
It's still going up.
Go to Victoria for one reasonyou have a lot of investors
exiting and you are able topurchase.
Yeah, you've got space foryourself.
You're able to purchase at alower level.
Yeah, and Victoria will comeback.
I always like to highlight this.
My business mentor his name isAdrian Hondros.
He's the former director of NABand CBA.
(36:53):
This guy knows his shit and hejust turned to me and he goes.
Victoria will have its comeback.
Of course it will.
Some government official isgoing to get in, they're going
to look at this land tax ruleand they're going to go.
This is rubbish.
Everywhere else in Australia isbenefiting, except for some
reason our properties are taxedat 1% wide because we don't like
investors.
Some government official isgoing to go in there and go fuck
(37:14):
socialism.
Let's actually make sure thatwhoever comes to Melbourne,
stays in Melbourne, invests inMelbourne.
We want to be the number onecity, because they do want to be
the number one city inAustralia.
Speaker 2 (37:24):
I mean it's always between Sydney and Melbourne
100% so anyone else who thinksthey're throwing their hat in
the room, he's kiddingthemselves.
Speaker 1 (37:30):
There's always different price points, but
those are my main takeawaysright now.
Right, okay.
Speaker 2 (37:36):
All right, well, to wrap this up, let's end it on a
fun one, and we'll do our clientprofile.
And now I've got a pretty funnyone that I found online from a
real estate agent and I'd liketo know your opinion on it.
Speaker 1 (37:47):
All right, just so you know, I've done no research
on this and Mark was going tojust throw a bloody curveball at
me.
Speaker 2 (37:52):
Yeah, I kept this one off.
So, all right, we've got acouple.
They're checking out a fewhouses in town.
The real estate agent has toldyou, joe, that the wife keeps
bringing a broom to each tour.
He thinks it's pretty strange.
So eventually the couple doesdiscover the perfect house and
the husband is really keen on it.
The problem is the wife hassaid no, why?
(38:13):
Well, the reason that she'sbeen bringing the broom is
because it tells her which houseis the right one, and it didn't
speak during the tour.
So it really is the perfecthouse for them and they have
pre-approval.
Do you try to convince the wifeor do you just sort of wash
your hands of this?
Now, allegedly, this is trueAllegedly, but you can't believe
everything you read on theinternet.
Speaker 1 (38:33):
You haven't thrown at me a borrowing scenario.
Speaker 2 (38:37):
You've thrown at me a crystal ball Because the
husband is keen.
So if you can technically makeinroads with him.
Speaker 1 (38:44):
So the Wicked Witch of the West has taken her broom.
She's gone to house one, housetwo.
I am then going to download theproperty reports, I'm going to
download the rental reports, I'mgoing to download the suburb
statistics and then I'm going topresent that to them.
I'm going to show them that ifwhere the broom didn't speak has
grown 18% more than where thebroom did speak, I'm going to
(39:06):
tell her, sweetie.
This is the one no, not this isthe one, because I can't say
that.
I can't say that.
Yep, that's true, but, sweetie,maybe you gotta put the broom
in a wood chipper, becauseproperty number one is going to
help you in the long term.
Speaker 2 (39:26):
Potentially, potentially in the long term.
Speaker 1 (39:29):
Don't ever throw a curveball like that at me again
when I saw that, I went.
Speaker 2 (39:37):
I don't even care if that's real, that's great,
that's hilarious.
Speaker 1 (39:40):
That's hilarious um, okay, all right, so well, that's
all the time we have today forthe finance show with joe yeah
as discussed.
If you or a friend familymember need help with your
mortgage, visit us atwwwitsimplecomau.
Book in a time with me.
Don't be calling me at 11 pm.
Like some of my clients, I'vegot to do an episode on invasion
(40:03):
of personal space.
I'll tell you that and we'll bemore than happy to assist you
with you or your financial needs.
As always, I'm joe I'm michael.
I'm not the schmo this week andwe'll see you on the next
episode.
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