On this episode, we get into the skyrocketing Perth market, where some homes are gaining $1,000 a day!
Ever wondered where to find the next big investment opportunity? We've got you covered with an in-depth look at regional Victoria, particularly Melbourne, where the lingering effects of COVID-19 have shifted the investment landscape. With investors exiting, property values and rental yields have seen fluctuations.
Plus, don't miss our special guest, Manny, who shares expert advice for first homebuyers and guides you through the labyrinth of financial decisions.
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 schmoand we've got Matty back again.
We just love having him around.
Speaker 2 (00:10):
That is my cousin.
He is from the area.
Speaker 1 (00:13):
How you?
Speaker 3 (00:15):
been man.
Tell me Good.
Thank you for having me on theshow once again, guys.
I really appreciate it.
I'm very excited to uncover afew very different topics that
we haven't really spoken abouton the show.
I don't know.
I see Perth here.
Yeah, we've spoken aboutDunbury a few times.
Speaker 2 (00:29):
Yeah, I want to say the property market went through
a bit of a lull and you and Idiscussed this on the last
episode.
We did talk about this.
Yeah, like July, august, theactivity was weird.
But September's come around andthere seems to be like a.
Is it a micro boom?
Is it a miniature boom?
I don't know what to call it.
Speaker 3 (00:46):
I think it's sentiment that's driving the
market.
So, going back to July, august,I think, we were at a
crossroads where, as a nation,we didn't really know where the
economy was going.
Obviously, right now there'sstill talks about, you know are
interest rates going to increase?
Are they going to decrease?
When is that going to happen?
(01:07):
What's the RBA going to do?
But I think for the most part,everyone is relatively confident
that either at the end of thisyear or at some point next year,
the RBA is going to startcutting rates and interest rates
will come down.
Speaker 2 (01:21):
I'm so confused about the interest rate situation.
Yeah, I'm keeping confusedabout the interest rate
situation.
Yeah, because I'm keeping themto drop.
So what I see on my end as abroker is a lot of the fixed
rates have come down by like 50basis points.
So, macquarie, if you fix anowner occupied loan right now, I
think 80% or less LVR.
(01:41):
So, just for everyone tounderstand, if you've got a 20%
deposit and you're borrowing 80%from the bank, they will if you
fix your loan.
So a fixed rate mortgage fortwo years offer you 5.59%, which
is incredibly low compared towhat we've been seeing over the
last 18 months of interest rateshovering around that 6% to 7%
(02:04):
mark.
But then a report comes outtoday saying anz is tipping on
tuesday for interest rates torise.
Is there too many buyers in themarket?
Is there like what is happening?
Is there enough supply in perth?
That's my biggest question,because how's perth?
How?
Speaker 1 (02:22):
is how is it okay, yeah.
Speaker 3 (02:25):
so, um, look, perth is one of the markets and I say
this to all the clients thatwe're sort of speaking to at the
moment and sourcing propertiesfor I I think we have a finite
opportunity in the market to getinto capital cities before
they're considered unaffordable.
Perth has obviously gone throughsuch a tremendous level of
equity uplift and, obviously, aproperty boom over the last 15
(02:49):
to 18 months, right.
What we're sort of seeing,because we're still on the
ground in Perth, we havecolleagues that are going to
open homes on our behalf andproperty managers that we work
with that are there, right.
So, in terms of, I guess thecommentary that we're hearing
and what we're seeing is thatbuyer activity from investors is
starting to slow down.
(03:09):
Okay, yes, so it's creatingmore of an opportunity for local
buyers to actually come backinto the market, cause a pain
point for you know Perthcitizens at one point is that
they were just gettingcompletely priced out by you
know East coast investors, right, and we and they just
absolutely hated us because wehad, you know, higher borrowing
(03:29):
capacities than them more.
Speaker 2 (03:30):
East side, baby east side.
Speaker 3 (03:34):
But they hated us and even you know I guess real
estate agents were sort of notreally wanting to work at one
point you know, with buyersagents.
But that's kind of you knowcompletely died out.
Speaker 2 (03:49):
I saw an amazing statistic the other day that
Perth has been growing by $1,000a day.
Like across the whole, like thePerth LGA, greater Perth area,
whatever you want to call itthat has been growing by $1,000
a day.
So if you bought a house lastyear for $500,000, this date
(04:11):
last year it is worth $865,000on average across the state.
I don't want to say it's insane, because I use that word too
often on this podcast, but thatis better than a lot of stocks.
Speaker 1 (04:25):
Better than crypto.
Better than crypto.
Speaker 2 (04:25):
Better than crypto we know how much I hate crypto,
but it's better than crypto.
It's better than you know thestock market.
It's better than a lot of bonds.
It's better than futures.
In a time in the world wherepeople are struggling to make
money, it just seems like thatwhole city is doing remarkably
well.
Yeah, what suburbs?
(04:47):
What are the key suburbs thatwe're seeing that are really
like getting that uplift For?
Speaker 3 (04:52):
sure Look a lot of suburbs across Perth, like it
was at one point.
It was almost like you couldthrow a dart at the map and just
pick any suburb and buy, andyou'll do well when you need to
be very critical about thechoice moving forward if you
want to invest in Perth.
Why I say this is, as we seeinvestor activity leave the
(05:14):
market in areas that arepredominantly driven by
investors, I believe they'llstart to go through a bit of a
downturn Because all of a suddenyou take all this level of
demand out of a market that isdriven by investors.
You know that that market isn'tpropped up by those buyers
anymore.
It'll obviously go through abit of a down downtrend in my
you know, humble opinion.
(05:34):
Right with that being said,there are lots of locations and
suburbs still within Perth thatare predominantly driven by
owner occupiers and now that theinvestor focus is starting to
leave and go to other placesaround the country, it's
creating an opportunity forlocal buyers to actually be able
to afford to get into themarket.
So they're still buying up allof these properties and there's
(05:57):
still a greater demand and thereis supply.
So we have continued to seeprice increases like it's every
week that the prices go up,right.
So I guess the point that I'mtrying to make is with
opportunity in the market.
It's really, I feel, solelybased around like suburbs that
are considered affordable, right.
(06:18):
So you know inner citylocations in Perth I'm not going
to tell all my trade secrets,but there are you.
There are pockets that are nineto sort of 14 kilometers away
from the CBD where you can stillget property sub 650,000 with a
6% yield.
Speaker 2 (06:34):
So I'm just going to let our camera guy know Liam
just got pre-approved.
I'm not supposed to say thatout loud.
Maybe we should cut that.
I'm just going to say I'm justgoing to let our camera guy know
who will remain anonymousbecause they just got
pre-approved.
Very good, thank you.
And yeah, just listen to whatMatty.
Yeah, I'm allowed to say hisname, matty has to say.
(06:57):
So you were talking aboutinvestors leaving the market and
you're seeing, you know, thingsdrop, and I did have this for a
later segment in the show.
But there is one key state thatI do want to bring up.
Yes, victoria, so that wasdriven heavily by investors.
Yeah, they're living in drovesnow, aren't they?
Speaker 1 (07:20):
They've left in droves.
Oh, they've left in droves,yeah.
Speaker 2 (07:23):
COVID smashed them because people couldn't come in
or work or do anything.
Dan Andrews smashed them.
Yeah, don't worry about thatbloke.
I've got some stories about himthat I'm allowed to say in the
air.
But Dan Andrews, no, no, no,sorry, no.
But Victoria, we've seenproperties drop 2% again, yep,
(07:44):
and they dropped last time wewere speaking.
Yeah, they dropped again they.
They dropped again rental yield.
Is you know?
Is it okay?
Speaker 3 (07:52):
no, oh, look, it's in , in in the grand scheme of what
a good rental yield needs to be, with interest rates being at
six and a half percent.
No, they're still not okay, butthey're definitely increasing
and we'll touch on.
Speaker 2 (08:06):
I'll just ask the question now Because we're
seeing this lull in the market,dip in the market.
Melbourne is still Australia'sbiggest city.
Yeah, They've actually got alarger population than Sydney,
it's just.
New South Wales is bigger ingeneral.
But the question I'm poising toyou is is now a good time for
people to just kind of get intothat Melbourne market, or are we
(08:28):
thinking steer clear justbecause we're not seeing the ROI
Look?
Speaker 3 (08:33):
I think my thought process on this is the market
could still go either way, right?
So, essentially, the data isgetting stronger, especially
around rental yields increasing.
Vacancy rates have beenreducing, which is quite strong.
The market sentiment is notwhere it needs to be and I think
(08:55):
it's based on a couple ofpoints around land tax, around
low rental yields, aroundunaffordability of the local
buyers, but also, you know,investors from other states, you
know, obviously looking atplaces like Perth and Adelaide
as affordable places to investwith higher levels of yield, but
as these affordable locationsthat we've been seeing in the
(09:20):
past become unaffordable, itcreates an opportunity where
markets work in cycles at theend of the day, right?
So I definitely think that weshould start talking about
Melbourne.
Is it the right time to investnow?
I think that question needs tobe answered quickly by is it
(09:42):
fundamentally right for you toinvest in Melbourne?
Speaker 1 (09:46):
Based on your specific financial situation.
Speaker 2 (09:48):
yeah, If it's your first property, I wouldn't be
looking at it as an investor.
If I'm purchasing my firstinvestment, I want to get fast
capital gain and I want to getgood rental yields, which is why
I'm looking at WA, northernparts of Adelaide.
I wouldn't even look atTasmania I know I've been an
advocate for Tasmania for a longtime and I'd probably be
(10:09):
looking at areas around Brisbane.
Those are the three pocketsright now in Australia where you
can achieve those things.
I'm not too sure about Darwin.
I'm not too sure.
I don't want to get into it.
Is anyone too sure about Darwin?
I don't want to get Is anyonetoo sure about that?
What's going on there?
But with Victoria, it's more ofan accumulation play.
So if I've got five, 10properties, okay, which not a
(10:34):
lot of people do.
But if I've got an accumulationof wealth and I'm thinking to
myself okay, I've invested inPerth, I've invested in Sydney,
I've got one in Brisbane, one inAdelaide, and now I want to
diversify my portfolio, hey,that looks like a bargain.
It's in a great spot in thecity and I'm going to say St
(10:56):
Kilda just because it's oneplace that I know.
Oh, st Kilda's undervalued.
Okay, I'm going to go purchasethere, as opposed to putting my
money in another spot, in PerthBecause we've seen WA 2014,.
After all, the miners left.
Previously there was an issuewith the market, for sure, but
now we're seeing the comebackand on the back of the comeback,
(11:18):
they're investing more in theinfrastructure of the city.
Speaker 1 (11:20):
Yep.
Are they still limiting theamount of investors allowed by
in perth for new?
Speaker 3 (11:26):
development yes.
For new development yeah.
So for new land yes.
Um, they're still controllingthat 80 20 rule, which is, I
think, one of the best thingsthat they're doing.
Speaker 1 (11:35):
Um, because I feel like that would like limit that
crash again, right?
Speaker 2 (11:38):
yeah, when you look at, I guess, industry as well,
it's a lot more diversified thanwhat it was back in 2014, when
it was predominantly driven bymining um, they also brought in
a new short-term rental wherethey're trying to limit the
amount of short-term rentalsthat exist in wa, because you
just, you just had people comingand buying in droves and using
it for airbnb yeah, and fly in,fly out yeah, oh, so fifo
(12:01):
workers would just live in likeco-living type arrangements.
Speaker 3 (12:05):
Really, yeah, renting rooms.
Yeah, because they're not therefor weeks at a time, you know.
Speaker 2 (12:09):
What are some projects that you're able to
discuss For sure?
Speaker 3 (12:15):
Give me something good.
Yeah, look, I really likeregional Victoria.
Okay, we're talking aboutMelbourne.
Is it the right time to invest?
We'll uncover that a little bitlater in the segment, because I
have my thoughts aboutMelbourne.
But to touch on recent projectsand recent, I guess, areas that
you know, we've been very bigfans of regional Victoria.
(12:36):
You're talking sort of an hour30 to an hour 50 away from
Melbourne CBD.
I call it the Newcastleequivalent of Melbourne.
What so like Geelong?
Yeah, well, satellite cities,right.
So you have Geelong, you haveBendigo, you have Ballarat and
then you have the Latrobe Valleyregion.
The Latrobe Valley region iswhere I sort of have my eyes on
(12:59):
at the moment because there'shundreds of millions of dollars
of infrastructure coming in tothese suburbs within the Latrobe
Valley region Over the nextfive years.
They're all around likerenewable energy, solar, wind
farming, 50 to 100,000 new jobsand more than $100 million of
infrastructure coming into onelocal government area.
(13:21):
Historically, whenever we'veseen that happen, it's always
drives the prices.
But we're talking establishedproperties from 350 to 400,000
with a 6% rental yield, an hourand 50 minutes away from
Melbourne CBD.
Speaker 2 (13:36):
That's pretty good.
That's pretty good.
And are we talking freestandinghouses?
So freestanding complete, yeah,and six or seven percent rental
yield?
Yeah, four to 500 square meterblocks, so you're covering your
mortgage, and then on top ofthat you'll, you've got the
opportunity for capital growth.
Yep, yeah, can I buy some?
Speaker 3 (13:59):
if you, if you know a cameraman with a pre-approval,
so how do you come across thisarea?
Speaker 2 (14:05):
um look by chance.
Actually I'm just going tomention I've never heard like we
.
We're accredited with 40lenders.
I know latrobe as one of thebanks that I have to go to.
I didn't actually know aboutthis latrobe valley area like is
it like the barossa valley?
They do wine so how'd you comeacross this one?
Speaker 3 (14:22):
So we actually came across this opportunity by a
developer friend of mine who wasspeaking to me about land and
house packages in the location.
I think opportunity and he'llprobably watch this video.
So I apologize in advance, buthouse and land packages in that
(14:43):
area you're looking at about$600,000 to $650,000, whereas
you can buy establishedproperties for $400,000.
So to me that's like creatingan opportunity for the
established market, buying anestablished property as all of
these new developments start tocomplete over the next couple of
years, setting a new benchmarkfor pricing, as long as,
(15:05):
obviously, the demand continuesto outweigh the supply and they
don't just all of a sudden bringhundreds of lots to the market.
Speaker 2 (15:10):
With established properties, you can't claim as
much depreciation, correct, yeah?
So if you are an investor andyou are looking to acquire more
property, your biggest thing isto try and drive your tax lower
100%.
And you can't drive your taxlower as well with an
established property as you canwith a brand new property.
(15:31):
On top of that, with everythingI just mentioned, there's a
good chance that the establishedproperties, whilst they are at
a great price point, thedifference when you're using a
deposit, one would be $40,000,the other one would be $60,000,
for a 10% deposit, for sure, butwith a $60,000 deposit, $20,000
(15:52):
more, you're getting $200,000more property and on top of that
, you're getting better negativeyear and you're getting better
tax implications.
Yep, my general advice tobuyers out there is don't always
just look at price.
Look at quality, for sure.
Look at what you're purchasing.
You might purchase somethingthat is established, but guess
(16:14):
what?
It might come with a lot moreissues.
Speaker 3 (16:16):
Yeah, and it comes down to unique individual
scenario as well, right?
So understanding the pros andcons of both brand new and
established and deciding what isthe right option for me to
invest in is probably the rightway to look at it.
Right, because there are greatproperties all over the country
that are brand new andestablished.
But ultimately, my advice toany client is understand the
(16:39):
pros and cons of what brand newproperty looks like and what
established property looks likefor you and make the most
informed decision that you can,based on the facts and, as a
business, that's why, from anearly stage, we've decided to
offer both brand new andestablished property, because we
genuinely feel in the marketthere's always great brand new
(17:00):
opportunities and there's alwaysreally good established options
, but it genuinely comes down toeach individual circumstance
and what the right opportunityfor them is.
Speaker 2 (17:09):
Building out a borrower profile or a buyer
profile, you actually try tounderstand their goals, what
they're trying to achieve, andyou just try to make sure that
you secure them the bestlocation.
What other locations inVictoria?
You wanted to talk aboutMelbourne a bit more, did you?
Speaker 3 (17:24):
Yes.
So with Melbourne, I mean, look, warren Buffett has a famous
quote and here we go.
The quote is be fearful whenothers are greedy and greedy
when others are fearful.
So essentially, what that'stelling us is invest counter
cyclical to the market.
Right and right now, melbourneis a buyer's market.
(17:44):
But I would say to anyone who'sthinking about Melbourne and
thinking about is it the righttime for me to invest in
Melbourne, understand the pricepoints that you're looking at,
understand the rental returnsthat you're looking at and,
depending on the deposit thatyou're actually going to put
towards this investment, do acash flow analysis and decide.
(18:05):
Is holding this property on aweek-to-week basis actually
going to be comfortable for me?
Because we can look at thelong-term?
And, yes, melbourne's at thebottom of the market and yes,
it's the second largest CBD andyes, it's historically had one
of the most consistent levels ofcapital growth year-on-year.
Just because it's gone througha little bit of a downturn in
(18:27):
the last 12 months 15, 18 monthsdoesn't mean that it's going to
continue going in a downtrend.
Speaker 2 (18:33):
But they're also approving the most amount of
dwellings.
That's the one thing that I'mkind of looking at.
So me as a buyer, and I'malways looking at property and
supply and demand.
Speaker 1 (18:44):
Yeah, simple economics yeah like I was.
Speaker 2 (18:46):
I was talking to a client recently and she was just
telling me about docklands andshe was like that, like that
whole sector, they wanted it tobe like sydney harbour.
They didn't think it throughbecause that, literally, I'm
pretty sure docklands facestasmania and it gets super cold.
Yeah, like so there's nonightlife down there.
I went down there once at nightand I thought, like you know,
(19:07):
it'll be buzzing.
It'll be buzzing, it's a ghosttown.
It's crazy how they just didn'tprovide enough, you know,
infrastructure, enough culturethere, and Melbourne's known for
its culture.
Speaker 3 (19:18):
Yeah, the issue there is they just rezoned the whole
area.
Okay, and just all of yourcousins just came in.
Speaker 2 (19:31):
Yeah, we make fun of Lebs on this show.
It's just, I'm looking atMelbourne.
I personally, for my situation,my scenario, I can take a risk.
Okay, I've been in this gamefor 14 years.
I've seen property go up anddown, I've seen Wollongong bust
and I've seen Wollongong boomand I've done one well in
(19:52):
Wollongong, but I've done it,I've been there.
I get people turning to me andthey're like, oh, my property
hasn't gone up in value in threemonths.
I'm like, bro, you bought itthree months ago.
Like, give it two years orsomething you know.
And then they'll tell me oh,but my friend at a barbecue made
this much money.
How long have they held theproperty?
For Two years, yeah, that's why, okay.
So I think, in my particularlike I'm looking at Melbourne
(20:15):
and I'm looking hard because I'mlike, oh, okay, there's some
opportunity there, but you go toMelbourne.
I've ragged on Melbourne a lotpreviously, but you know it's
fun you like it.
I like food there's plenty of it.
The coffee thing is overblown.
Sydney coffee, like you go downthere, this one's fantastic,
(20:35):
100%.
One of the best is Sydney Greek.
You know the Greeks, they knowhow to make a good coffee, but
they've got the nightlife,they've got all that stuff.
We don't have that in Sydney.
Sydney's a morning city, so Iwould actually look at it
because, even though they areapproving a lot of dwellings,
even though they do have thosethings, I can wear the risk and
(20:57):
I can see the future.
The future to me says theystill get all the big sporting
events.
Yep, okay, the Olympics went tobrisbane, but everything else
is down there.
They still have, I think, thehighest amount of new students
moving to the city and theyalways are investing in their
infrastructure.
It's so much easier to getaround melbourne than it is
sydney unless you're trying toget there from the airport.
(21:20):
Yeah, that is true, but that'sthe only thing, like just just
going from the airport toEssendon or Kilo, or it's like
an hour away from CBD, yeah.
It depends on the airport theyhave to yeah but from
Tullamarine to the city is a35-minute drive, but after that
you're pretty sweet.
But that's what Sydney is goingto be Once.
The second one opens.
Speaker 3 (21:41):
Patrick is freaky by 2040.
Speaker 2 (21:42):
So they're not expecting it to be fully
functional until 2040, eventhough it's opening soon.
Speaker 1 (21:47):
I was going to say 2040, really.
Speaker 2 (21:51):
Yeah, but they're expecting that that's when
they're going to be able tochurn the most amount of people.
Oh, okay, okay.
But you know, once that's open,I'm telling you now Mascot is
not going to be as busy, becausethat one in what suburb is it?
Badgerys Creek?
That's the one Badgerys Creekthat's going to be able to be 24
hour.
You're going to be able to landat 3 am.
Yeah, sydney, if you don't landby 1055, you're going to a
different airport, yep.
Speaker 3 (22:12):
It's the only airport in Australia, I believe, that
has a cutoff.
Speaker 1 (22:15):
Yeah, that's not 24 hours, it's like the only major
airport.
Speaker 2 (22:20):
Yeah, sound restrictions, man, they just are
All the Nimbys I live near theairport.
Speaker 1 (22:27):
I can't believe there's all these planes around.
Speaker 3 (22:29):
Yeah, I know, right, oh but the houses do shake there
, they do.
Speaker 2 (22:33):
Yeah, that's true.
I was in Marrickville and therewas one landing over us, and my
brother-in-law was with us.
I wish I got a video of thisand he thought the plane was,
you know, gonna land.
So listen to what he does.
Okay, my brother-in-law istaller than me.
Yeah, okay, he's skinny up, butlike he's a, you know he's a
solid guy.
You know he works out, he runsand he hides behind me like I'm
(22:55):
going to stop the plane with myhands like this okay, he was
freaked out, he's like shit.
And he comes and he literallytucks himself behind me and I'll
look around and I go Alison isyour brother.
Okay, what am I going to doagainst the plane right now?
But it was just.
Yeah, that was a very At leasthe likes you.
I don't think that's.
(23:15):
I don't know, if he liked mehe'd jump in front of it.
Speaker 1 (23:19):
Take it instead.
Wait, I just wanted to get backto Melbourne Because you were
saying for different buyers anddifferent situations and stuff
like that.
Does this mean like it's a goodthing for renters, like the
situation is quite good for them?
Speaker 3 (23:30):
good question.
Yeah, so I think in Melbourneit's probably one of the best
areas to rent vest at the momentSydney and Melbourne, right?
Speaker 2 (23:36):
so no, but Melbourne for sure.
Yeah, melbourne for rentvesting would be phenomenal
because your rent itself.
Speaker 3 (23:41):
It would be cheaper like yeah, the yields are like
three and a half percent in somepockets.
Speaker 2 (23:45):
You know your rent is way cheaper than what you have
a mortgage for If you are astudent and you are detached
like, so you've moved toAustralia or you've moved like,
or you know, you don't have alarge family, you don't have a
large Lebanese family, witheverybody freaking out, if you
move 20 minutes down the road,basically Okay.
But if you don't have that andyou're able to live somewhere, I
(24:07):
would personally melbournewould be the spot for me.
Yeah, okay at more culture,it's easier to make friends down
there.
Um, sydney's very cliqueysydney's extreme bro, if I go to
the north shore they're gonnalook at me, they're gonna be
like you're not from.
You smell different, very, verydifferent.
Melbourne obviously I've onlybeen ever been there as a
tourist.
I've never actually actuallylived there.
But I don't feel that sentimentand I feel like there's pockets
for everything.
If you are into cars, they'vegot a car culture.
(24:29):
If you are into restaurants,you've got restaurant culture.
If you are emo, they probablystill have that.
Is that still a thing?
Speaker 1 (24:37):
I mean like there's emo nights at clubs and stuff.
Speaker 2 (24:39):
I don't know if there's like an actual scene
anymore.
Speaker 1 (24:41):
I could dive there's like an actual scene anymore.
Look at that cliff.
Dive here.
Speaker 2 (24:45):
To answer your question, I think rent vesting
in Melbourne.
If you were going to do it andyou're detached, I think it's
probably the best city to do it.
Moving on, interesting newsabout interest rates Okay, so
the Federal Reserve, the US.
Speaker 1 (25:01):
They're RBA.
Yeah, they're RBA.
Speaker 2 (25:03):
Are you a mortgage broker?
Because?
Speaker 1 (25:04):
I'm not.
Speaker 2 (25:07):
But they're RBA.
Yeah, they're RBA.
Are you a mortgage broker?
Because I'm not.
But their version of theReserve Bank of Australia has
dropped their interest rates byhalf a percent and you know
we've had the tipping.
We discussed it earlier.
But you know the fixed ratesare going down.
They're saying that the ratesare not going to be cut this
Tuesday.
They're going to hold or theymight increase.
I don't know.
Australia does follow the usquite closely, but they also
(25:31):
follow new zealand quite closelytoo, and you and I looked at
the data for consumer spending.
Ah, yes, it's called the shitlike.
Nobody's buying shit anymore.
Nobody can afford anything.
Unemployment is still at 4.2and that's the reason why
they're like that.
That's a cliff they're dying on.
They're like no, too manypeople are working.
We can't drop the interestrates yet.
(25:52):
Yeah, do you expect to be likea proper property boom?
Speaker 3 (25:56):
yeah, for sure.
Yeah, um, we're already gettingbusier and busier because of
just purely based on sentiment,like people are thinking the
interest rates are dropping sothey're wanting to buy property
as soon as we see interest ratesdrop.
I think we're just going to gothrough a frenzy like we did in
2019.
Yeah, um, one thing that Iremember when interest rates
(26:18):
started to go up was we saweurope, we saw the Fed closely
followed US, and then we didright.
So I wonder if it's going tohave the same impact this time
around when America starts toreduce their rates.
(26:39):
When they do, are we going toclosely follow that as well?
Speaker 2 (26:42):
The issue, the biggest issue is if America
drops their interest rates,their spending power goes up.
That means inflation goes upover there, yeah, so that means
we're going to have less moneyto be able to import goods from
the States yeah, but they'regoing to have more money to
export goods from us, which isthe way that we've got to think
(27:03):
about it as well.
We export a lot to the States.
We export, you know, a lot ofminerals, but we also export
like, have you ever been to theStates?
No, never been.
You watch the commercials forfast food.
They're like 100% Australianbeef, yeah, like, and they're so
proud to have like Australianbeef.
You're going to have largecorporations making more money.
(27:26):
Yeah, I mean, they're alreadymaking record profits If we
don't drop our interest rates.
They're going to be making theprofits okay, on the exports,
but the regular Australian folkare actually going to be losing
out, because if we need toimport something from overseas,
the prices are just going to goup.
Speaker 1 (27:41):
Yeah, and then it's just going to cost us and we're
selling everything yeah, likewe've got all this stuff and yet
we import it yeah, still yeah.
Speaker 2 (27:48):
Uranium.
That's the no, not uranium.
What's the weird gas?
Speaker 1 (27:51):
yes, I don't know why we.
Why do we do that with gas?
We have so much natural gas andwe sell all of it and then buy
it back.
Speaker 2 (27:58):
That that's how it's fault.
Oh, is it?
Yeah, that's johnny howard'sfault.
He made's fault.
He made that agreement back in96, 97.
Yeah, and yeah, that just itwas one, so it was just one
agreement and that was it.
Speaker 3 (28:11):
Imagine making a like , changing a policy that just
affects a country forever.
Speaker 1 (28:16):
Well, he did GST right, that's changed.
Speaker 3 (28:18):
everything I like GST .
Speaker 1 (28:20):
Yeah, I never lived in a world without GST, so I
don't know I, yeah, I neverlived in a world without.
Gsd.
So I don't know, I'm not oldenough to know, really.
Speaker 2 (28:26):
No, the one that I don't like is the fuel excise.
Speaker 3 (28:31):
Why is petrol cheaper ?
My friends messaged me theother day and said go down to
Belmore Metro, the United likeone of those ones that water
down the petrol.
It was like $1.
That comes up again, that waterdown the petrol.
It was like a dollar that comesup again, it was like a dollar
50 or a dollar 60 for 98 premiumA dollar 50 a liter.
Speaker 2 (28:53):
Yeah, no, it's just.
I don't know what's happeningin the world right now.
We could predict all we want.
Speaker 3 (28:57):
It just can go honestly either way.
All we know is Perth keepsgoing.
Speaker 2 (29:02):
All right, manny, thank you so much for coming on
the show today.
Speaker 3 (29:04):
Thank you, I enjoyed it when can everyone reach you
At InvestorMate underscore onInstagram at Manny97 underscore
for my personal Instagram.
044995531 is my personal numberand wwwinvestormatecomau.
Speaker 2 (29:22):
All right, and if you need any help with your
finances, whether it's aninvestment, loan pre-approval,
if you're a first home buyer,you can reach out to us at
wwwitsimplecomau and you canbook in with us and we'd be more
than happy to take care of youas always.
That's I'm Shmoe, I'm Joe,that's Emmanuel, and thank you
for watching the.
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmoand we've got Matty back again.
We just love having him around.
Speaker 2 (00:10):
That is my cousin.
He is from the area.
Speaker 1 (00:13):
How you?
Speaker 3 (00:15):
been man.
Tell me Good.
Thank you for having me on theshow once again, guys.
I really appreciate it.
I'm very excited to uncover afew very different topics that
we haven't really spoken abouton the show.
I don't know.
I see Perth here.
Yeah, we've spoken aboutDunbury a few times.
Speaker 2 (00:29):
Yeah, I want to say the property market went through
a bit of a lull and you and Idiscussed this on the last
episode.
We did talk about this.
Yeah, like July, august, theactivity was weird.
But September's come around andthere seems to be like a.
Is it a micro boom?
Is it a miniature boom?
I don't know what to call it.
Speaker 3 (00:46):
I think it's sentiment that's driving the
market.
So, going back to July, august,I think, we were at a
crossroads where, as a nation,we didn't really know where the
economy was going.
Obviously, right now there'sstill talks about, you know are
interest rates going to increase?
Are they going to decrease?
When is that going to happen?
(01:07):
What's the RBA going to do?
But I think for the most part,everyone is relatively confident
that either at the end of thisyear or at some point next year,
the RBA is going to startcutting rates and interest rates
will come down.
Speaker 2 (01:21):
I'm so confused about the interest rate situation.
Yeah, I'm keeping confusedabout the interest rate
situation.
Yeah, because I'm keeping themto drop.
So what I see on my end as abroker is a lot of the fixed
rates have come down by like 50basis points.
So, macquarie, if you fix anowner occupied loan right now, I
think 80% or less LVR.
(01:41):
So, just for everyone tounderstand, if you've got a 20%
deposit and you're borrowing 80%from the bank, they will if you
fix your loan.
So a fixed rate mortgage fortwo years offer you 5.59%, which
is incredibly low compared towhat we've been seeing over the
last 18 months of interest rateshovering around that 6% to 7%
(02:04):
mark.
But then a report comes outtoday saying anz is tipping on
tuesday for interest rates torise.
Is there too many buyers in themarket?
Is there like what is happening?
Is there enough supply in perth?
That's my biggest question,because how's perth?
How?
Speaker 1 (02:22):
is how is it okay, yeah.
Speaker 3 (02:25):
so, um, look, perth is one of the markets and I say
this to all the clients thatwe're sort of speaking to at the
moment and sourcing propertiesfor I I think we have a finite
opportunity in the market to getinto capital cities before
they're considered unaffordable.
Perth has obviously gone throughsuch a tremendous level of
equity uplift and, obviously, aproperty boom over the last 15
(02:49):
to 18 months, right.
What we're sort of seeing,because we're still on the
ground in Perth, we havecolleagues that are going to
open homes on our behalf andproperty managers that we work
with that are there, right.
So, in terms of, I guess thecommentary that we're hearing
and what we're seeing is thatbuyer activity from investors is
starting to slow down.
(03:09):
Okay, yes, so it's creatingmore of an opportunity for local
buyers to actually come backinto the market, cause a pain
point for you know Perthcitizens at one point is that
they were just gettingcompletely priced out by you
know East coast investors, right, and we and they just
absolutely hated us because wehad, you know, higher borrowing
(03:29):
capacities than them more.
Speaker 2 (03:30):
East side, baby east side.
Speaker 3 (03:34):
But they hated us and even you know I guess real
estate agents were sort of notreally wanting to work at one
point you know, with buyersagents.
But that's kind of you knowcompletely died out.
Speaker 2 (03:49):
I saw an amazing statistic the other day that
Perth has been growing by $1,000a day.
Like across the whole, like thePerth LGA, greater Perth area,
whatever you want to call itthat has been growing by $1,000
a day.
So if you bought a house lastyear for $500,000, this date
(04:11):
last year it is worth $865,000on average across the state.
I don't want to say it's insane, because I use that word too
often on this podcast, but thatis better than a lot of stocks.
Speaker 1 (04:25):
Better than crypto.
Better than crypto.
Speaker 2 (04:25):
Better than crypto we know how much I hate crypto,
but it's better than crypto.
It's better than you know thestock market.
It's better than a lot of bonds.
It's better than futures.
In a time in the world wherepeople are struggling to make
money, it just seems like thatwhole city is doing remarkably
well.
Yeah, what suburbs?
(04:47):
What are the key suburbs thatwe're seeing that are really
like getting that uplift For?
Speaker 3 (04:52):
sure Look a lot of suburbs across Perth, like it
was at one point.
It was almost like you couldthrow a dart at the map and just
pick any suburb and buy, andyou'll do well when you need to
be very critical about thechoice moving forward if you
want to invest in Perth.
Why I say this is, as we seeinvestor activity leave the
(05:14):
market in areas that arepredominantly driven by
investors, I believe they'llstart to go through a bit of a
downturn Because all of a suddenyou take all this level of
demand out of a market that isdriven by investors.
You know that that market isn'tpropped up by those buyers
anymore.
It'll obviously go through abit of a down downtrend in my
you know, humble opinion.
(05:34):
Right with that being said,there are lots of locations and
suburbs still within Perth thatare predominantly driven by
owner occupiers and now that theinvestor focus is starting to
leave and go to other placesaround the country, it's
creating an opportunity forlocal buyers to actually be able
to afford to get into themarket.
So they're still buying up allof these properties and there's
(05:57):
still a greater demand and thereis supply.
So we have continued to seeprice increases like it's every
week that the prices go up,right.
So I guess the point that I'mtrying to make is with
opportunity in the market.
It's really, I feel, solelybased around like suburbs that
are considered affordable, right.
(06:18):
So you know inner citylocations in Perth I'm not going
to tell all my trade secrets,but there are you.
There are pockets that are nineto sort of 14 kilometers away
from the CBD where you can stillget property sub 650,000 with a
6% yield.
Speaker 2 (06:34):
So I'm just going to let our camera guy know Liam
just got pre-approved.
I'm not supposed to say thatout loud.
Maybe we should cut that.
I'm just going to say I'm justgoing to let our camera guy know
who will remain anonymousbecause they just got
pre-approved.
Very good, thank you.
And yeah, just listen to whatMatty.
Yeah, I'm allowed to say hisname, matty has to say.
(06:57):
So you were talking aboutinvestors leaving the market and
you're seeing, you know, thingsdrop, and I did have this for a
later segment in the show.
But there is one key state thatI do want to bring up.
Yes, victoria, so that wasdriven heavily by investors.
Yeah, they're living in drovesnow, aren't they?
Speaker 1 (07:20):
They've left in droves.
Oh, they've left in droves,yeah.
Speaker 2 (07:23):
COVID smashed them because people couldn't come in
or work or do anything.
Dan Andrews smashed them.
Yeah, don't worry about thatbloke.
I've got some stories about himthat I'm allowed to say in the
air.
But Dan Andrews, no, no, no,sorry, no.
But Victoria, we've seenproperties drop 2% again, yep,
(07:44):
and they dropped last time wewere speaking.
Yeah, they dropped again they.
They dropped again rental yield.
Is you know?
Is it okay?
Speaker 3 (07:52):
no, oh, look, it's in , in in the grand scheme of what
a good rental yield needs to be, with interest rates being at
six and a half percent.
No, they're still not okay, butthey're definitely increasing
and we'll touch on.
Speaker 2 (08:06):
I'll just ask the question now Because we're
seeing this lull in the market,dip in the market.
Melbourne is still Australia'sbiggest city.
Yeah, They've actually got alarger population than Sydney,
it's just.
New South Wales is bigger ingeneral.
But the question I'm poising toyou is is now a good time for
people to just kind of get intothat Melbourne market, or are we
(08:28):
thinking steer clear justbecause we're not seeing the ROI
Look?
Speaker 3 (08:33):
I think my thought process on this is the market
could still go either way, right?
So, essentially, the data isgetting stronger, especially
around rental yields increasing.
Vacancy rates have beenreducing, which is quite strong.
The market sentiment is notwhere it needs to be and I think
(08:55):
it's based on a couple ofpoints around land tax, around
low rental yields, aroundunaffordability of the local
buyers, but also, you know,investors from other states, you
know, obviously looking atplaces like Perth and Adelaide
as affordable places to investwith higher levels of yield, but
as these affordable locationsthat we've been seeing in the
(09:20):
past become unaffordable, itcreates an opportunity where
markets work in cycles at theend of the day, right?
So I definitely think that weshould start talking about
Melbourne.
Is it the right time to investnow?
I think that question needs tobe answered quickly by is it
(09:42):
fundamentally right for you toinvest in Melbourne?
Speaker 1 (09:46):
Based on your specific financial situation.
Speaker 2 (09:48):
yeah, If it's your first property, I wouldn't be
looking at it as an investor.
If I'm purchasing my firstinvestment, I want to get fast
capital gain and I want to getgood rental yields, which is why
I'm looking at WA, northernparts of Adelaide.
I wouldn't even look atTasmania I know I've been an
advocate for Tasmania for a longtime and I'd probably be
(10:09):
looking at areas around Brisbane.
Those are the three pocketsright now in Australia where you
can achieve those things.
I'm not too sure about Darwin.
I'm not too sure.
I don't want to get into it.
Is anyone too sure about Darwin?
I don't want to get Is anyonetoo sure about that?
What's going on there?
But with Victoria, it's more ofan accumulation play.
So if I've got five, 10properties, okay, which not a
(10:34):
lot of people do.
But if I've got an accumulationof wealth and I'm thinking to
myself okay, I've invested inPerth, I've invested in Sydney,
I've got one in Brisbane, one inAdelaide, and now I want to
diversify my portfolio, hey,that looks like a bargain.
It's in a great spot in thecity and I'm going to say St
(10:56):
Kilda just because it's oneplace that I know.
Oh, st Kilda's undervalued.
Okay, I'm going to go purchasethere, as opposed to putting my
money in another spot, in PerthBecause we've seen WA 2014,.
After all, the miners left.
Previously there was an issuewith the market, for sure, but
now we're seeing the comebackand on the back of the comeback,
(11:18):
they're investing more in theinfrastructure of the city.
Speaker 1 (11:20):
Yep.
Are they still limiting theamount of investors allowed by
in perth for new?
Speaker 3 (11:26):
development yes.
For new development yeah.
So for new land yes.
Um, they're still controllingthat 80 20 rule, which is, I
think, one of the best thingsthat they're doing.
Speaker 1 (11:35):
Um, because I feel like that would like limit that
crash again, right?
Speaker 2 (11:38):
yeah, when you look at, I guess, industry as well,
it's a lot more diversified thanwhat it was back in 2014, when
it was predominantly driven bymining um, they also brought in
a new short-term rental wherethey're trying to limit the
amount of short-term rentalsthat exist in wa, because you
just, you just had people comingand buying in droves and using
it for airbnb yeah, and fly in,fly out yeah, oh, so fifo
(12:01):
workers would just live in likeco-living type arrangements.
Speaker 3 (12:05):
Really, yeah, renting rooms.
Yeah, because they're not therefor weeks at a time, you know.
Speaker 2 (12:09):
What are some projects that you're able to
discuss For sure?
Speaker 3 (12:15):
Give me something good.
Yeah, look, I really likeregional Victoria.
Okay, we're talking aboutMelbourne.
Is it the right time to invest?
We'll uncover that a little bitlater in the segment, because I
have my thoughts aboutMelbourne.
But to touch on recent projectsand recent, I guess, areas that
you know, we've been very bigfans of regional Victoria.
(12:36):
You're talking sort of an hour30 to an hour 50 away from
Melbourne CBD.
I call it the Newcastleequivalent of Melbourne.
What so like Geelong?
Yeah, well, satellite cities,right.
So you have Geelong, you haveBendigo, you have Ballarat and
then you have the Latrobe Valleyregion.
The Latrobe Valley region iswhere I sort of have my eyes on
(12:59):
at the moment because there'shundreds of millions of dollars
of infrastructure coming in tothese suburbs within the Latrobe
Valley region Over the nextfive years.
They're all around likerenewable energy, solar, wind
farming, 50 to 100,000 new jobsand more than $100 million of
infrastructure coming into onelocal government area.
(13:21):
Historically, whenever we'veseen that happen, it's always
drives the prices.
But we're talking establishedproperties from 350 to 400,000
with a 6% rental yield, an hourand 50 minutes away from
Melbourne CBD.
Speaker 2 (13:36):
That's pretty good.
That's pretty good.
And are we talking freestandinghouses?
So freestanding complete, yeah,and six or seven percent rental
yield?
Yeah, four to 500 square meterblocks, so you're covering your
mortgage, and then on top ofthat you'll, you've got the
opportunity for capital growth.
Yep, yeah, can I buy some?
Speaker 3 (13:59):
if you, if you know a cameraman with a pre-approval,
so how do you come across thisarea?
Speaker 2 (14:05):
um look by chance.
Actually I'm just going tomention I've never heard like we
.
We're accredited with 40lenders.
I know latrobe as one of thebanks that I have to go to.
I didn't actually know aboutthis latrobe valley area like is
it like the barossa valley?
They do wine so how'd you comeacross this one?
Speaker 3 (14:22):
So we actually came across this opportunity by a
developer friend of mine who wasspeaking to me about land and
house packages in the location.
I think opportunity and he'llprobably watch this video.
So I apologize in advance, buthouse and land packages in that
(14:43):
area you're looking at about$600,000 to $650,000, whereas
you can buy establishedproperties for $400,000.
So to me that's like creatingan opportunity for the
established market, buying anestablished property as all of
these new developments start tocomplete over the next couple of
years, setting a new benchmarkfor pricing, as long as,
(15:05):
obviously, the demand continuesto outweigh the supply and they
don't just all of a sudden bringhundreds of lots to the market.
Speaker 2 (15:10):
With established properties, you can't claim as
much depreciation, correct, yeah?
So if you are an investor andyou are looking to acquire more
property, your biggest thing isto try and drive your tax lower
100%.
And you can't drive your taxlower as well with an
established property as you canwith a brand new property.
(15:31):
On top of that, with everythingI just mentioned, there's a
good chance that the establishedproperties, whilst they are at
a great price point, thedifference when you're using a
deposit, one would be $40,000,the other one would be $60,000,
for a 10% deposit, for sure, butwith a $60,000 deposit, $20,000
(15:52):
more, you're getting $200,000more property and on top of that
, you're getting better negativeyear and you're getting better
tax implications.
Yep, my general advice tobuyers out there is don't always
just look at price.
Look at quality, for sure.
Look at what you're purchasing.
You might purchase somethingthat is established, but guess
(16:14):
what?
It might come with a lot moreissues.
Speaker 3 (16:16):
Yeah, and it comes down to unique individual
scenario as well, right?
So understanding the pros andcons of both brand new and
established and deciding what isthe right option for me to
invest in is probably the rightway to look at it.
Right, because there are greatproperties all over the country
that are brand new andestablished.
But ultimately, my advice toany client is understand the
(16:39):
pros and cons of what brand newproperty looks like and what
established property looks likefor you and make the most
informed decision that you can,based on the facts and, as a
business, that's why, from anearly stage, we've decided to
offer both brand new andestablished property, because we
genuinely feel in the marketthere's always great brand new
(17:00):
opportunities and there's alwaysreally good established options
, but it genuinely comes down toeach individual circumstance
and what the right opportunityfor them is.
Speaker 2 (17:09):
Building out a borrower profile or a buyer
profile, you actually try tounderstand their goals, what
they're trying to achieve, andyou just try to make sure that
you secure them the bestlocation.
What other locations inVictoria?
You wanted to talk aboutMelbourne a bit more, did you?
Speaker 3 (17:24):
Yes.
So with Melbourne, I mean, look, warren Buffett has a famous
quote and here we go.
The quote is be fearful whenothers are greedy and greedy
when others are fearful.
So essentially, what that'stelling us is invest counter
cyclical to the market.
Right and right now, melbourneis a buyer's market.
(17:44):
But I would say to anyone who'sthinking about Melbourne and
thinking about is it the righttime for me to invest in
Melbourne, understand the pricepoints that you're looking at,
understand the rental returnsthat you're looking at and,
depending on the deposit thatyou're actually going to put
towards this investment, do acash flow analysis and decide.
(18:05):
Is holding this property on aweek-to-week basis actually
going to be comfortable for me?
Because we can look at thelong-term?
And, yes, melbourne's at thebottom of the market and yes,
it's the second largest CBD andyes, it's historically had one
of the most consistent levels ofcapital growth year-on-year.
Just because it's gone througha little bit of a downturn in
(18:27):
the last 12 months 15, 18 monthsdoesn't mean that it's going to
continue going in a downtrend.
Speaker 2 (18:33):
But they're also approving the most amount of
dwellings.
That's the one thing that I'mkind of looking at.
So me as a buyer, and I'malways looking at property and
supply and demand.
Speaker 1 (18:44):
Yeah, simple economics yeah like I was.
Speaker 2 (18:46):
I was talking to a client recently and she was just
telling me about docklands andshe was like that, like that
whole sector, they wanted it tobe like sydney harbour.
They didn't think it throughbecause that, literally, I'm
pretty sure docklands facestasmania and it gets super cold.
Yeah, like so there's nonightlife down there.
I went down there once at nightand I thought, like you know,
(19:07):
it'll be buzzing.
It'll be buzzing, it's a ghosttown.
It's crazy how they just didn'tprovide enough, you know,
infrastructure, enough culturethere, and Melbourne's known for
its culture.
Speaker 3 (19:18):
Yeah, the issue there is they just rezoned the whole
area.
Okay, and just all of yourcousins just came in.
Speaker 2 (19:31):
Yeah, we make fun of Lebs on this show.
It's just, I'm looking atMelbourne.
I personally, for my situation,my scenario, I can take a risk.
Okay, I've been in this gamefor 14 years.
I've seen property go up anddown, I've seen Wollongong bust
and I've seen Wollongong boomand I've done one well in
(19:52):
Wollongong, but I've done it,I've been there.
I get people turning to me andthey're like, oh, my property
hasn't gone up in value in threemonths.
I'm like, bro, you bought itthree months ago.
Like, give it two years orsomething you know.
And then they'll tell me oh,but my friend at a barbecue made
this much money.
How long have they held theproperty?
For Two years, yeah, that's why, okay.
So I think, in my particularlike I'm looking at Melbourne
(20:15):
and I'm looking hard because I'mlike, oh, okay, there's some
opportunity there, but you go toMelbourne.
I've ragged on Melbourne a lotpreviously, but you know it's
fun you like it.
I like food there's plenty of it.
The coffee thing is overblown.
Sydney coffee, like you go downthere, this one's fantastic,
(20:35):
100%.
One of the best is Sydney Greek.
You know the Greeks, they knowhow to make a good coffee, but
they've got the nightlife,they've got all that stuff.
We don't have that in Sydney.
Sydney's a morning city, so Iwould actually look at it
because, even though they areapproving a lot of dwellings,
even though they do have thosethings, I can wear the risk and
(20:57):
I can see the future.
The future to me says theystill get all the big sporting
events.
Yep, okay, the Olympics went tobrisbane, but everything else
is down there.
They still have, I think, thehighest amount of new students
moving to the city and theyalways are investing in their
infrastructure.
It's so much easier to getaround melbourne than it is
sydney unless you're trying toget there from the airport.
(21:20):
Yeah, that is true, but that'sthe only thing, like just just
going from the airport toEssendon or Kilo, or it's like
an hour away from CBD, yeah.
It depends on the airport theyhave to yeah but from
Tullamarine to the city is a35-minute drive, but after that
you're pretty sweet.
But that's what Sydney is goingto be Once.
The second one opens.
Speaker 3 (21:41):
Patrick is freaky by 2040.
Speaker 2 (21:42):
So they're not expecting it to be fully
functional until 2040, eventhough it's opening soon.
Speaker 1 (21:47):
I was going to say 2040, really.
Speaker 2 (21:51):
Yeah, but they're expecting that that's when
they're going to be able tochurn the most amount of people.
Oh, okay, okay.
But you know, once that's open,I'm telling you now Mascot is
not going to be as busy, becausethat one in what suburb is it?
Badgerys Creek?
That's the one Badgerys Creekthat's going to be able to be 24
hour.
You're going to be able to landat 3 am.
Yeah, sydney, if you don't landby 1055, you're going to a
different airport, yep.
Speaker 3 (22:12):
It's the only airport in Australia, I believe, that
has a cutoff.
Speaker 1 (22:15):
Yeah, that's not 24 hours, it's like the only major
airport.
Speaker 2 (22:20):
Yeah, sound restrictions, man, they just are
All the Nimbys I live near theairport.
Speaker 1 (22:27):
I can't believe there's all these planes around.
Speaker 3 (22:29):
Yeah, I know, right, oh but the houses do shake there
, they do.
Speaker 2 (22:33):
Yeah, that's true.
I was in Marrickville and therewas one landing over us, and my
brother-in-law was with us.
I wish I got a video of thisand he thought the plane was,
you know, gonna land.
So listen to what he does.
Okay, my brother-in-law istaller than me.
Yeah, okay, he's skinny up, butlike he's a, you know he's a
solid guy.
You know he works out, he runsand he hides behind me like I'm
(22:55):
going to stop the plane with myhands like this okay, he was
freaked out, he's like shit.
And he comes and he literallytucks himself behind me and I'll
look around and I go Alison isyour brother.
Okay, what am I going to doagainst the plane right now?
But it was just.
Yeah, that was a very At leasthe likes you.
I don't think that's.
(23:15):
I don't know, if he liked mehe'd jump in front of it.
Speaker 1 (23:19):
Take it instead.
Wait, I just wanted to get backto Melbourne Because you were
saying for different buyers anddifferent situations and stuff
like that.
Does this mean like it's a goodthing for renters, like the
situation is quite good for them?
Speaker 3 (23:30):
good question.
Yeah, so I think in Melbourneit's probably one of the best
areas to rent vest at the momentSydney and Melbourne, right?
Speaker 2 (23:36):
so no, but Melbourne for sure.
Yeah, melbourne for rentvesting would be phenomenal
because your rent itself.
Speaker 3 (23:41):
It would be cheaper like yeah, the yields are like
three and a half percent in somepockets.
Speaker 2 (23:45):
You know your rent is way cheaper than what you have
a mortgage for If you are astudent and you are detached
like, so you've moved toAustralia or you've moved like,
or you know, you don't have alarge family, you don't have a
large Lebanese family, witheverybody freaking out, if you
move 20 minutes down the road,basically Okay.
But if you don't have that andyou're able to live somewhere, I
(24:07):
would personally melbournewould be the spot for me.
Yeah, okay at more culture,it's easier to make friends down
there.
Um, sydney's very cliqueysydney's extreme bro, if I go to
the north shore they're gonnalook at me, they're gonna be
like you're not from.
You smell different, very, verydifferent.
Melbourne obviously I've onlybeen ever been there as a
tourist.
I've never actually actuallylived there.
But I don't feel that sentimentand I feel like there's pockets
for everything.
If you are into cars, they'vegot a car culture.
(24:29):
If you are into restaurants,you've got restaurant culture.
If you are emo, they probablystill have that.
Is that still a thing?
Speaker 1 (24:37):
I mean like there's emo nights at clubs and stuff.
Speaker 2 (24:39):
I don't know if there's like an actual scene
anymore.
Speaker 1 (24:41):
I could dive there's like an actual scene anymore.
Look at that cliff.
Dive here.
Speaker 2 (24:45):
To answer your question, I think rent vesting
in Melbourne.
If you were going to do it andyou're detached, I think it's
probably the best city to do it.
Moving on, interesting newsabout interest rates Okay, so
the Federal Reserve, the US.
Speaker 1 (25:01):
They're RBA.
Yeah, they're RBA.
Speaker 2 (25:03):
Are you a mortgage broker?
Because?
Speaker 1 (25:04):
I'm not.
Speaker 2 (25:07):
But they're RBA.
Yeah, they're RBA.
Are you a mortgage broker?
Because I'm not.
But their version of theReserve Bank of Australia has
dropped their interest rates byhalf a percent and you know
we've had the tipping.
We discussed it earlier.
But you know the fixed ratesare going down.
They're saying that the ratesare not going to be cut this
Tuesday.
They're going to hold or theymight increase.
I don't know.
Australia does follow the usquite closely, but they also
(25:31):
follow new zealand quite closelytoo, and you and I looked at
the data for consumer spending.
Ah, yes, it's called the shitlike.
Nobody's buying shit anymore.
Nobody can afford anything.
Unemployment is still at 4.2and that's the reason why
they're like that.
That's a cliff they're dying on.
They're like no, too manypeople are working.
We can't drop the interestrates yet.
(25:52):
Yeah, do you expect to be likea proper property boom?
Speaker 3 (25:56):
yeah, for sure.
Yeah, um, we're already gettingbusier and busier because of
just purely based on sentiment,like people are thinking the
interest rates are dropping sothey're wanting to buy property
as soon as we see interest ratesdrop.
I think we're just going to gothrough a frenzy like we did in
2019.
Yeah, um, one thing that Iremember when interest rates
(26:18):
started to go up was we saweurope, we saw the Fed closely
followed US, and then we didright.
So I wonder if it's going tohave the same impact this time
around when America starts toreduce their rates.
(26:39):
When they do, are we going toclosely follow that as well?
Speaker 2 (26:42):
The issue, the biggest issue is if America
drops their interest rates,their spending power goes up.
That means inflation goes upover there, yeah, so that means
we're going to have less moneyto be able to import goods from
the States yeah, but they'regoing to have more money to
export goods from us, which isthe way that we've got to think
(27:03):
about it as well.
We export a lot to the States.
We export, you know, a lot ofminerals, but we also export
like, have you ever been to theStates?
No, never been.
You watch the commercials forfast food.
They're like 100% Australianbeef, yeah, like, and they're so
proud to have like Australianbeef.
You're going to have largecorporations making more money.
(27:26):
Yeah, I mean, they're alreadymaking record profits If we
don't drop our interest rates.
They're going to be making theprofits okay, on the exports,
but the regular Australian folkare actually going to be losing
out, because if we need toimport something from overseas,
the prices are just going to goup.
Speaker 1 (27:41):
Yeah, and then it's just going to cost us and we're
selling everything yeah, likewe've got all this stuff and yet
we import it yeah, still yeah.
Speaker 2 (27:48):
Uranium.
That's the no, not uranium.
What's the weird gas?
Speaker 1 (27:51):
yes, I don't know why we.
Why do we do that with gas?
We have so much natural gas andwe sell all of it and then buy
it back.
Speaker 2 (27:58):
That that's how it's fault.
Oh, is it?
Yeah, that's johnny howard'sfault.
He made's fault.
He made that agreement back in96, 97.
Yeah, and yeah, that just itwas one, so it was just one
agreement and that was it.
Speaker 3 (28:11):
Imagine making a like , changing a policy that just
affects a country forever.
Speaker 1 (28:16):
Well, he did GST right, that's changed.
Speaker 3 (28:18):
everything I like GST .
Speaker 1 (28:20):
Yeah, I never lived in a world without GST, so I
don't know I, yeah, I neverlived in a world without.
Gsd.
So I don't know, I'm not oldenough to know, really.
Speaker 2 (28:26):
No, the one that I don't like is the fuel excise.
Speaker 3 (28:31):
Why is petrol cheaper ?
My friends messaged me theother day and said go down to
Belmore Metro, the United likeone of those ones that water
down the petrol.
It was like $1.
That comes up again, that waterdown the petrol.
It was like a dollar that comesup again, it was like a dollar
50 or a dollar 60 for 98 premiumA dollar 50 a liter.
Speaker 2 (28:53):
Yeah, no, it's just.
I don't know what's happeningin the world right now.
We could predict all we want.
Speaker 3 (28:57):
It just can go honestly either way.
All we know is Perth keepsgoing.
Speaker 2 (29:02):
All right, manny, thank you so much for coming on
the show today.
Speaker 3 (29:04):
Thank you, I enjoyed it when can everyone reach you
At InvestorMate underscore onInstagram at Manny97 underscore
for my personal Instagram.
044995531 is my personal numberand wwwinvestormatecomau.
Speaker 2 (29:22):
All right, and if you need any help with your
finances, whether it's aninvestment, loan pre-approval,
if you're a first home buyer,you can reach out to us at
wwwitsimplecomau and you canbook in with us and we'd be more
than happy to take care of youas always.
That's I'm Shmoe, I'm Joe,that's Emmanuel, and thank you
for watching the.
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