February 5, 2025 • 26 mins
This week Joe and Michael explore the interest rate predictions from ANZ, CBA, and Westpac, while we unravel the political and economic factors shaping these forecasts. Discover how migration trends and government policies focusing on individual welfare create a challenging landscape for first-time homebuyers, as we spotlight the disconnect between policymakers and the realities of the housing market.
With interest rates likely to drop, they boys also take a look at the best Sydney suburbs to invest in and it may or may not shock you to find out that Western Sydney is taking the cake. Find out the top performing suburbs and more on the latest episode of the Finance Show with Joe.
Follow us for more property news and mortgage advice!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmo.
And today we're going to talkabout the glorious topic of
interest rates.
Now there's a lot ofpredictions surrounding interest
rates this year.
It's a big talking pointbecause they were supposed to
drop.
Well, they were theorized todrop December last year.
Speaker 2 (00:19):
They were theorized to drop.
Speaker 1 (00:21):
May last year.
They're constantly theorized todrop.
Yeah, this year everyone'sfeeling a little more confident.
Anz are predicting a rate cutin February alongside CBA.
Originally, anz said it wasgoing to be May.
They've changed that now toFebruary and this is because of
better than expected CPIConsumer Price Index.
Right, it was 2.3% in Novemberand that's within the RBA's
(00:41):
target band of 2% and 3%.
Yeah so, and that's within theRBA's target band of 2% and 3%.
Yeah, so Westpac is stillsticking to May.
They're not going.
They still don't think it'sgoing to be in February.
Here's what I find interestingis how many rate cuts there are
this year, or predicted ratecuts this year.
Anz says it's only going to betwo.
Both CBA and Westpac say fourand NAB says five.
Speaker 2 (01:00):
Okay, so everyone knows my opinion on interest
rates and the effects thatthey're supposed to have.
It depends on how stimulatedthe government wants the market
to be.
Now at the moment, we've got apolitical government in play
that isn't focused on bigbusiness, but actually focused
on the individual.
So we've seen Anthony Albanesecome out with some policies in
(01:21):
regards to a single tax rate.
Not a single tax rate, buteverybody getting a tax cut and
that was, I believe, that cameout the 1st of July 2024, and
everyone's income went up,except for the people that were
earning like over 120,000 or so.
What we've seen is they wantmore people to be able to afford
their homes and to have morepeople to be able to afford
(01:41):
their homes, they needeverything to be a level playing
field.
Yeah, okay, so they wouldpossibly not want to drop rates
too much because they're stillallowing in a whole bunch of
migration, and when you'reallowing more migration, that
means you bring more buyers tothe market, because if we let in
more wealthy individuals fromIndia, from China, from Arab
nations, what they're going todo?
(02:02):
They're going to come toAustralia.
They're going to do.
They're going to come toAustralia.
They're going to see property,they're going to see how it
grows here and they're going togo.
I should buy a property here, ofcourse.
Yeah, so more people enter themarket.
What they want to do is theywant to try and find that sweet
spot that will allow enougheconomic activity where they
don't have builders goingbankrupt every other week, yeah,
yeah, yeah, but also not haveprices skyrocket.
(02:23):
So you mentioned that.
Anz, was it that predicted tworate cuts?
Speaker 1 (02:28):
Yeah, ANZ says just two.
Speaker 2 (02:30):
I actually agree with that, you reckon.
I agree with ANZ saying thatthere's going to be two rate
cuts, because what we've seenalso is the Reserve Bank of
Australia dragged their feetwhenever it comes to this sort
of stuff.
They dragged their feet when itcame to putting the interest
rates up.
Speaker 1 (02:47):
Originally To take it down.
Speaker 2 (02:48):
Yeah, and then they dragged it to take it down again
.
Everyone is expecting oh youknow what February rates are
going to come down.
Rates are going to come down.
I don't think so.
Speaker 1 (02:56):
Do you think it'll happen in May I?
Speaker 2 (02:57):
don't think it's going to be May.
I think it's March 16th or so.
Okay, something around there.
There's a point around thenthat's going to be for the
Reserve Bank of Australia tomeet again and declare if
they're going to put interestrates up or down.
The head of the RBA, how sheoperates, how certain decisions
are made and I always see thembeing a step behind, apologizing
(03:22):
and then saying here's a rebate, here's $200 for your
electricity bill.
Speaker 1 (03:28):
Here's yeah.
Speaker 2 (03:28):
Band-Aids, yeah, and then they throw a Band-Aid at it
because they want to be moreconservative.
Okay, they would rather ask.
They'd rather ask forforgiveness, to be honest,
because we've seen Australiansstruggle.
I see it every single day.
I see like it used to be yep,first time buyer 70k, let's go
get you an apartment yeah,what's well, there was no
problem with that.
Speaker 1 (03:48):
There was no issues.
Speaker 2 (03:49):
You're buying an apartment now.
We've got the supply issues,where they're not approving as
many dwellings.
We've also got the interestrate issues they're not coming
down.
And we've also got peoplepurchasing like three, three
siblings or um two couplespurchasing together, going and
buying a house together.
So we're not seeing what weused to.
Okay, but they don't care.
Speaker 1 (04:08):
No.
Speaker 2 (04:08):
They don't care.
At the same time, they justthink to themselves okay, it's
just numbers, it's just numbers.
They don't see the everydayindividual.
I think there was the housingminister for New South Wales.
I'm not too sure, but there wasa recent video of them being
interviewed online talking aboutrental prices and they go yeah,
you can rent a property inSydney for a couple hundred
(04:29):
bucks.
Oh, I remember this video it wasa two-bedroom apartment and
they're like you can rent atwo-bedroom apartment in Sydney
for $200 a week.
No, yeah, that sounds aboutright.
Yeah, there's plenty ofapartments in Sydney that you
can rent for $200.
I wish, right, yeah, there's,there's plenty of apartments in
(04:55):
sydney that you can rent for 200.
I wish the statistic was since2020.
Speaker 1 (04:58):
Yeah, okay, out of the 25 000 units that were
listed for rent in that period,only 23 have been even close to
200.
Yeah, and that was before rentsjumped up 100 so crazy.
Speaker 2 (05:03):
They're out of, completely out of touch so, yeah
, you have individuals that arecompletely out of touch making
decisions for 97% of Australians.
Speaker 1 (05:11):
And how does this affect you, the viewer that 97%?
Just to put this into context,what this interest rate actually
would mean for you, these cuts.
Speaker 2 (05:19):
I'm just going to chime in.
If you're expecting a rate cutnext month, I'm going to say
there's a 50-50 chance.
Speaker 1 (05:26):
But even if there's a rate cut, if the rate cuts do
happen, if it's just the one, ifyou've got a $600,000 home loan
, you'll save about $92 a month.
Two rate cuts you're saving$182 per month, and four cuts,
$357 a month.
That's not chump change forpeople who are, you know, at
this end of the market.
Speaker 2 (05:43):
A $600,000 loan, $357 a month is how much I'm saving
people on average when they justrefinance.
There you go.
Okay, because a lot of peopleare on revert rates.
They don't even know it.
The banks have put rates up onthem.
They don't even know it.
I said it last episode yeah,banks are there to make money.
Speaker 1 (06:07):
But $350 a month.
Speaker 2 (06:08):
That equates to what?
$4,400 a year, somewhere aroundthat.
All I know is it's food, youknow what I mean.
It equates to 50, top 12, 600.
It equates to about $4,200 amonth.
I got that $357.
That is a huge amount of money.
That $4,200 a year sorry,$4,200 a year is a huge amount
of money.
From after-tax income.
I did a study recently where Iwas calculating the median
(06:29):
average salary in New SouthWales somewhere around $98,200,
somewhere close to that $98,200.
After-tax is about $71,000,$73,000.
Food, laundry expenses, yourmortgage.
So you're saying that if you'vegot a mortgage of six hundred
thousand dollars, you're goingto save yourself a hundred bucks
(06:49):
a month.
Let's say right, yeah but what'syour monthly repayment ready on
that?
It's already forty two hundreddollars a month.
Okay, so we take that seventyone thousand and we minus forty
eight thousand odd dollars fromit.
What are you left with for theyear?
You're left with twenty threethousand dollars.
Petrol, groceries, food.
I want to go out.
I just want to do anything.
Literally, you, what are youleft with for the year?
You're left with $23,000.
Petrol, groceries, food.
I want to go out.
Speaker 1 (07:06):
You just want to do anything.
Literally, you want to just goto a movie.
Speaker 2 (07:10):
It's very, very, very difficult for people out there.
You're praying for five ratecuts.
That is what you are actuallyhoping.
The statistics tell it.
People are struggling.
They need the rate cut to come.
But I honestly believe, justfrom what I've seen and the
behavior of the Reserve Bank ofAustralia, the behavior of the
housing minister, you just don'tfeel confident.
(07:32):
I'm not confident.
They said, oh, we're going toincrease the supply of housing.
Where's the increase?
The only place it's increasedis Victoria.
I guess what's happening inVictoria right now?
They've introduced a new landtax so there's nobody buying
property to make money anymore.
Speaker 1 (07:48):
Yeah, they're buying it to live.
Speaker 2 (07:50):
And relocating is not just an easy thing.
Speaker 1 (07:53):
No, I mean, if you've got family here, you've got to
ditch them.
It costs money to get all yourstuff there.
Speaker 2 (08:00):
Finding a new job.
Finding a new job Socialcircles.
Speaker 1 (08:06):
Yeah, I mean there finding a new job.
Finding a new job socialcircles.
Speaker 2 (08:08):
Yeah, I mean literally everything my wife
wants us to move to melbourne?
Speaker 1 (08:09):
no, no, just in general just in general.
Speaker 2 (08:11):
Okay, move from illawong.
I've lived in illawong all mylife.
When I get back to illawong, Ifeel relaxed.
It's home.
It's not even home.
There's less traffic around.
There's um you, there's nopublic transportation, which is
a good thing, because that meansI don't have kids running
around a train station causingmischief and stuff.
It's peaceful for me.
(08:31):
When she tells me I want topick up and move and I want to
go here or I want to go there,do you know what I think to
myself?
I think to myself there's ninelevels of stress above me
because I'm like, oh my God, ifwe do this, that means the sun's
not going to be there.
And then there's going to bekids coming near my house and I
don't know the neighbors and I'mLebanese.
What if they don't like that?
(08:52):
There's just so many thingsthat are involved with picking
up and moving.
One of the guys that works atit Simple Brian.
He moved from Maryland down toOren Park or one of the suburbs
close to oran park right, sothat camden area.
Yeah, he told me it was the mostpeaceful experience of his life
and he doesn't want to ever goback to maryland.
(09:12):
Okay, he'll go back, he'llvisit, he'll go see his friends
and stuff.
But picking up and moving froma peaceful area to somewhere
that's chaotic is huge.
If you're not from melbourne orvictoria, okay, it might be
great because there's vacantapartments and stuff, but if
you're not from there and youdon't know the area, it is scary
.
So I don't like this internetdiscourse or people going online
saying oh just really, okay,you can find a cheaper property.
(09:34):
Okay, cool, is my job downthere.
Speaker 1 (09:35):
Yeah, literally just everything.
It's not easy If you've got noroots yeah, go wherever you want
.
Speaker 2 (09:42):
It's going to be very interesting what happens with
the interest rates and we arehoping there are cuts because I
want to see people be wealthyagain.
I want to see people be excitedagain.
I walk around and I see peoplelike they've got their chins
down.
They hate everything.
The only time I see peoplehappy is when I'm in Bondi and
it's a bunch of backpackersbecause they don't have to worry
(10:03):
about that stuff.
Speaker 1 (10:04):
They don't have to worry about that sort of stuff.
They're here oh.
Speaker 2 (10:07):
I'm here for a holiday.
I'm going to go swimming inBondi and then I'm going to go
do this and you're just likecool.
Good for you.
Speaker 1 (10:11):
Yeah, enjoy your Asahi balls.
Speaker 2 (10:18):
I'm going to dip my feet, people that are struggling
in Australia, and I really,really hope the Reserve Bank of
Australia looks at it and goesoh, it's not unemployment, we
need to look at it'sunderemployment.
It's not the CPI, becausethere's a lot of people that are
actually still spending money,but 98% of Aussies aren't and we
(10:41):
want to be able to help them.
Speaker 1 (10:43):
Yeah Well, my uneducated opinion on whether or
not there's a rate cut coming.
Speaker 2 (10:47):
I think it's a 50-50 chance of next month, yeah, and
I think it's an 80% chance.
If it doesn't happen next month, it's like an 80% chance of the
month after.
But you do think it's going tohappen this year.
No, it needs to happen, yeah,Otherwise they Let us know in
the comments.
What do you think?
Do you think there's going tobe an interest rate cut next
month, or do you think MichelleBullock is just going to drag
her feet and say you know what?
(11:09):
Not enough people have losttheir job yet.
But let's get to some positivenews.
The statistics have come outfor the best places to invest in
Sydney in 2024.
So if you purchase in this area, you made some serious money in
2024.
At number 10, Edenza Park grew15.5%.
At number nine, Weatherill Parkalso grew 15.5%.
(11:31):
Number eight St John's Park15.7%.
The Crows are making money thisyear.
Number seven Traeger 15.7%.
Where's Traeger?
Number six Lansvale, at 16.2%.
And number five, MountPritchard, which came in at
16.2%, and number five, MountPritchard, which came in at
16.8%.
Number four was BonnyrigHeights at 17.4%.
Number three is Emerton, whichis 17.9%, and number two is
(11:55):
Wiley Park 18.5%.
And number one is Bonnyrig.
The Croatians Wait, sorry, Ioffended people, the Serbians,
at 19% growth in 2024.
Speaker 1 (12:06):
Yeah, even Edenza Park, Weatherill Park, St John's
Park that's where the church isand everything.
Lots of crows around there.
Man, the Balkans are making alot of money, Damn.
Speaker 2 (12:16):
They figured out how to make as much concrete as
possible.
Speaker 1 (12:19):
Water that concrete, big and strong.
Speaker 2 (12:22):
I'm looking at these statistics.
I can't believe it is how muchWestern Sydney grew in value in
2024.
Airport right.
Speaker 1 (12:32):
I don't think it's got nothing to do with the
airport.
I think, one, people still wantto live in Sydney and two,
these places are relatively farmore affordable than anywhere
east and north.
Speaker 2 (12:39):
I don't think it's to do that.
I think it's to do withcommunity.
Speaker 1 (12:42):
Oh yeah, 100%.
I think that's playing a part.
Speaker 2 (12:44):
I think the communities have become more
centralized yeah rather thanpreviously.
There was the uh aspiration of Ineed to get out of punchbowl, I
need to move out east.
I'm just using this as anexample.
Okay, it's no longer, I need.
I need to leave punchbowl, Ineed to get out east.
It's I need to leave punchbowl.
I need to get to strathfield.
Ah, yeah, so people still wantto remain connected with their
(13:04):
community but don't want to betoo far away at the same time.
What we have seen previously iswhen there was relocations and
upscale and I want to move to abetter area it used to be I've
got to move far away.
Every single sub-suburb or cityarea, local government area,
has its premium.
Now you go to the LGA of camden, oran park's killing it.
(13:28):
Yeah.
You go to the lga of uhcronulla, sutherland shire.
Cronulla is absolutely killingit.
But then you go to the lga ofbankstown, canberra city council
, bellfield yeah, oh yeah, wetalked about this has spiked up
in value like crazy bel Belmore.
Belmore is doing remarkably well.
So you see all these littlesubsections.
(13:49):
People don't want to move toofar away, but what you are
seeing is okay.
You know what?
I want to live in Bonnyrig nowbecause that's the good area.
Okay, People don't want to betoo far away from their schools.
People like the traditionalcommunity family values.
Speaker 1 (14:02):
This is true, like my sister.
Now she moved, my parents movedback in.
Like they moved back out west,basically towards the Crow
community, out near Edenza Park,st John's Park, and she loves
it there.
She doesn't actually want toleave.
Yeah, like we bought a housetogether and I was like, come
live with me.
And she's like, no, I'm goingto stay here.
I'm like all right crazy.
(14:23):
She goes to yeah, she goes toCroatian language school, she
goes to church, she goes to allthese little crow meetups, go
Jordan.
I know right, it's insane,that's amazing, that's great to
hear.
So I think a lot of people arefeeling that.
And now that there's moreinvestment in terms of
infrastructure with publictransport, you're getting the
metro line towards.
Have you been on it?
No, actually, because I'm onthe train line.
Speaker 2 (14:46):
It's just a train.
Yeah, I've been on the metrosbefore.
Speaker 1 (14:48):
Yeah, it's just driverless trains so they can't
strike.
Speaker 2 (14:59):
But it's awesome to see Western Sydney really,
really reinvested itself anduplifted itself 100%.
Speaker 1 (15:01):
Western Sydney's a good place.
Speaker 2 (15:02):
There's only so much land.
As we know, sydney is beach,blue mountains.
You can build in the middle.
There's only so much area.
It's great to see that there'sother areas that are doing
really well.
Some of the biggest houses I'veever seen are like in like
drool, oh drool.
Speaker 1 (15:18):
Yeah, man, the mansions down there.
I used to.
My parents used to live there.
Well, myself as well.
Yeah, I used to go get guitarlessons from this guy who lived
in a normal house but on thisstreet, literally you had who's
the woman from A Current Affair?
Tracy, tracy, yeah, tracyGrimshaw used to live there.
Yellow Wiggle was living downthere.
(15:38):
Huge, humongous mansions,castles some of them, and I'm
like it's crazy.
Speaker 2 (15:50):
And they're all hidden on these side streets,
like not an old northern road.
You won't well, you see some ofthem especially.
I know the area well.
No, but it's just, it's.
It's great to see that.
Um, it's not just easternsuburbs that are always creeping
up, yeah, but other suburbs.
We've also got the top 10apartments and their growth, so
the apartment locations thatmade the most money and these
are really different at 10.
We have brightonance, which grew10.3% At 9,.
We have Wyoming, which grew10.3%.
At number 8, summer Hill 10.5%.
(16:12):
7 is Queenscliff at 10.7%, 6 isKingswood at 11.6%, number 5 is
Camperdown at 11.8%, number 4is South Windsor 13%.
Number 3 is Bass Hill at 13.5%,Number 2 is Strathfield at
15.3% and number one is Montereyat 18.3%.
(16:32):
I can't believe Kingswood is inthe list.
Kingswood is next to Penrith,isn't it?
Speaker 1 (16:37):
Yeah, it's scary.
Speaker 2 (16:40):
But from my recollection they started
gentrifying around the trainstations.
Speaker 1 (16:45):
Yeah, there is like apartment buildings there, but
it's not like it's solvedanything.
I'm not going to lie, myfiancée, her family, is out
Penrith way and like Penrithitself is fine, but Kingswood
specifically, like we would gonear the train station and stuff
there, you feel it.
Speaker 2 (17:04):
I think the reason for those areas growing in so
much value is because people gotpriced out of Sydney, so that's
why they're probably moving toKingswood and that's probably
raised the price there as well.
Speaker 1 (17:13):
Yeah, I guess I mean the median price.
There is $573,000, which ismuch lower than everything else
on this list.
Speaker 2 (17:21):
So that means it was previously the year before
$520,000.
Speaker 1 (17:25):
Yeah.
Speaker 2 (17:25):
Okay, If it's grown by that much.
That makes sense.
To me.
It does make sense Because alot of people came to the market
.
Where in Sydney now can you getan apartment for $570,000?
Speaker 1 (17:34):
Kingswood, apparently , but that's what I'm saying.
Speaker 2 (17:36):
So if you're earning a combined salary.
I'm earning $60,000, you'reearning $60,000.
Yeah, we combine Kingswoodtogether.
Speaker 1 (17:42):
Okay, that makes sense and it's a place to get
started Exactly.
I'm surprised Strathfield is inthe list.
I thought Strathfield had a bitof money behind it and the
median price is $765,000.
Speaker 2 (17:51):
So the Strathfield houses?
Speaker 1 (17:53):
that spark your value .
Speaker 2 (17:54):
They're the expensive ones because there's something
called the Golden Mile.
Speaker 1 (17:57):
I've heard of this.
Speaker 2 (18:01):
So the Golden Mile is ?
You've got one street, I thinkit's called the Boulevard, and
anything in between there iscalled the Golden Mile.
It's all the substrates inbetween, right.
That's why, like, how close doyou live to the Golden Mile, how
far away do you live to theGolden Mile?
Those are the areas that sparkin value in Strathfield and it's
all the houses there's a lot ofapartments there, heaps I like
the buildings there.
The apartments there don't doas, but now they're starting to
(18:23):
because, Strathfield isliterally the central hub of
Sydney.
Speaker 1 (18:27):
It's a very convenient location, extremely
Big train station as well.
Speaker 2 (18:31):
Exactly, so that train station can take you
basically anywhere in Sydney,literally, yeah, and so what
that has allowed is a lot morepeople to move in, but no more
development.
So guess what happens?
I need to go to Parramatta forwork and I also need to go to
the city for work.
I'm going to live inStrathfield, I need to go visit
my family in the SutherlandShire, or I need to go to ride
because I've got work there.
(18:51):
Strathfield is the convenientlocation.
This is true, and depending onwhat side of Parramatta Road you
live on from Strathfield, thatwill depend on how much the
property is valued at.
So the closer you are toParramatta Road, the less the
value is going to be.
Yeah, because Parramatta Roadsucks.
Yeah, absolutely chaotic.
But the closer you are to Ithink it's to Hume Highway, the
(19:11):
southern side of Strathfield,it's also cheaper there, so
literally in the middle ofStrathfield.
Speaker 1 (19:16):
That's your golden, your golden one.
Speaker 2 (19:20):
My favorite thing about this statistic was we got
Brighton-LaSands and Monterey.
Okay, so Monterey is number oneand then Brighton-LaSands is
number two, number 10.
Okay, so everything seems to bein between.
If you know Monterey andBrighton-LaSands, they're right
next to each other.
I think, there might be asuburb in between, but they're
very, very close Same generallocation.
(19:41):
Yeah, I think it's really coolto see that it's not all
disconnected.
They're actual suburbs that arefeeling the trickle-down effect
.
So Monterey, I know the suburbquite well.
It's actually nice, it'sbeautiful, it's on the beach.
People love going to Monterey.
Don't know many apartmentsthere, but it's actually a
really, really nice location.
(20:01):
I'm assuming monterey spiked invalue for downsizes because
you're not in brighton where youget all the um, hectic,
mischievous stuff of the kids.
You know, brighton was ourthing back in the day.
Speaker 1 (20:12):
I don't know if it was yours uh, no, I was in the
hills, so okay, south sydneyhonestly mystery okay.
Speaker 2 (20:19):
So brighton was our like um, it's, it's.
It's where everyone used to gorun a market and stuff.
So there's a chance that a lotof people don't want to go there
to downsize.
But Monterey two suburbs oversame beach just as beautiful.
You're in a very convenientlocation, depending on if you
can drive or not, and I thinkthat's the reason why it's
spiked up so much.
But it's really cool to seethat there's not too much
(20:41):
disconnection in this list.
Now another list came out thisyear of where we think, okay,
where to invest next?
Okay, now, this is really cool.
So there's freemantle in perth,yep, which has a population
that has grown by 14.
There's 29% less sales thanwhat they were last year.
(21:05):
Yeah, and then there was 77%less buildings to be able to
approve, which means which meansa lot more people in the market
.
They want to buy, they want tobuy close to the area.
They don't want to leave theirparents Supply and demand.
Then we've got Bayswater inPerth, which is very similar.
We've got Jundalup McKay inQueensland and Gladstone in
Queensland.
Speaker 1 (21:25):
Yeah, regional Queensland and Perth.
I don't think this is really ashock to anyone that those
places are doing great, to mybest.
Speaker 2 (21:33):
New developments, new roads.
You don't have the you knowarchaic old stuff.
It's a lot easier to get inthere.
When you build a newdevelopment and it's a lot of
unoccupied property, you where.
When you build a newdevelopment and it's a lot of
owner-occupied property, youoften see a lot of really good
people coming in to buy in thatlocation and it just makes
people more comfortable.
Yeah, okay, and there's a reasonwhy that people think these are
the best places to invest.
Or the study says that theseare the best places to invest
(21:55):
and that's because of restrictedsupply.
Speaker 1 (21:56):
Yeah, that's it.
It's just literally simplesupply and demand, right, it's
just it.
Speaker 2 (22:00):
So what we think is going to happen in 2025,
obviously these are based onjust a random prediction and
stuff.
We could see Sydney boom again.
We could see Queensland boomagain.
I personally think Adelaide isabout to have their run.
Actually, South Australia is inthe mix, according to the
numbers.
Speaker 1 (22:15):
Okay.
So what do they say?
Yeah, prospect Walkerville,mitcham, port Adelaide, east,
Tidry, gully and Onkaparingathat's a fun name.
Speaker 2 (22:21):
I just think that Adelaide hasn't had its run
compared to WA.
Speaker 1 (22:25):
No, yeah yeah, surprisingly, because it's
convenient for, likeMelbournians, melbournites, I
don't know which one.
That is Because it's not like.
I mean, obviously it's far, butit's not that far.
Speaker 2 (22:36):
No, it's not.
And good wine, they've got alot of churches, right, they do,
yeah, yeah.
They do.
Speaker 1 (22:43):
Pretty churches, I mean.
Speaker 2 (22:44):
Adelaide.
I think they're due for theirnext run.
I think that's going to be theboom in 2025.
Okay, I think Perth has had itsrun.
We had David on this show.
He thinks Perth had its run, soit'll be really interesting.
Let us know in the commentswhich suburb or city do you
think is about to have its runin.
Speaker 1 (23:07):
Our favorite segment, the client profile of the week.
Are you ready for this one?
Yeah, so, bill.
He's buying his first house.
Everything has gone smoothlyMortgage is in check, money sent
.
Next comes settlement.
The selling agent has told you,the broker, that the bank has
given you the payoff, which isway more than expected.
As it turns out, the originalowner, the seller, has stopped
(23:29):
paying the mortgage.
This isn't a short sale or apre-foreclosure situation.
The listing agent didn't do anydue diligence regarding the
mortgage.
What would you do in thissituation?
Contact the solicitor.
Speaker 2 (23:41):
Yeah, get the law involved.
So clients already approved.
Speaker 1 (23:44):
Yeah.
Speaker 2 (23:44):
Clients approved for more than what they're expecting
.
Yeah, have they spent any ofthe extra money that they had
saved?
Speaker 1 (23:52):
No, they're confused because the extra money that
they had saved.
No, they're confused becausethe settlement hasn't happened
yet.
You're getting this informationat settlement.
Speaker 2 (23:56):
No, no.
So we got the formal approval.
Client has been formallyapproved for more than what
they're expecting.
They're expecting 600K andinstead they got 700K on a
formal approval.
They originally had a depositof 300,000.
Now that they could shrink to200,000, correct, yeah, okay,
there's a few ways that youcould play this.
How bad do you want theproperty?
(24:17):
Okay, and get the solicitorinvolved.
You've got to get the solicitorinvolved because the real
estate agent didn't do their duediligence.
They didn't tell things to lineup the vendor, so the person
selling their solicitor didn'tdo the job properly, either
because they didn't check thepexa workspace account, or they
didn't check the accounts tomake sure that there was no
shortfall on their end, or therewere no issues with the bank
accounts on their end.
I mean, it's simple.
(24:37):
Just look at the.
So now the vendor is incomplete breach of their
contract and at the same time,they need to pay off their
mortgage.
Okay, if the vendor is broke,then they are going to be
completely screwed.
Okay, the purchaser couldpossibly assist in paying that
loan down.
But I would only recommend.
So it depends on how much themortgage is.
If the mortgage is $10,000 amonth or something, and they
(25:00):
missed $20,000 in repayments.
No, don't pay that F that.
Let's say it's a few hundredbucks.
We're short a few hundreddollars.
You call up the solicitor.
You ask them what can we do?
Is there a possibility?
Because a real estate agentdidn't do their job properly?
Tell them to take lesscommission, otherwise it's going
to be on them that the saledidn't go through and they could
(25:22):
be held liable because of it.
They could be held liablebecause the vendor didn't pay
their accounts on time.
They can also be liable becausethe purchaser hasn't got their
property.
You can also contact theirsolicitor, the vendor solicitor
why didn't you do your diligence?
You've had this loan in frontof you for eight weeks.
You've had this contract tosell in front of you for eight
weeks.
(25:42):
These are small things you cando.
Or you can rescind the contract, get your money back and just
go find another property topurchase because the vendor
hasn't held up their side of theagreement.
You have okay, and you can alsocharge them penalty interest
for every day that it doesn'tsettle.
Speaker 1 (25:57):
There you go.
Get the law involved or backthe hell out of there.
Speaker 2 (26:00):
Thank you guys so much for this episode of the
Finance Show with Joe.
Let us know what you guys thinkabout the interest rates and
let us know where you guys thinkthe next best investment spot
is in New South Wales.
As always, I'm Joe, I'm SamShmoe and we will see you on the
next episode.
Welcome to the Finance Show with Joe.
He's Joe, I'm just some schmo.
And today we're going to talkabout the glorious topic of
interest rates.
Now there's a lot ofpredictions surrounding interest
rates this year.
It's a big talking pointbecause they were supposed to
drop.
Well, they were theorized todrop December last year.
Speaker 2 (00:19):
They were theorized to drop.
Speaker 1 (00:21):
May last year.
They're constantly theorized todrop.
Yeah, this year everyone'sfeeling a little more confident.
Anz are predicting a rate cutin February alongside CBA.
Originally, anz said it wasgoing to be May.
They've changed that now toFebruary and this is because of
better than expected CPIConsumer Price Index.
Right, it was 2.3% in Novemberand that's within the RBA's
(00:41):
target band of 2% and 3%.
Yeah so, and that's within theRBA's target band of 2% and 3%.
Yeah, so Westpac is stillsticking to May.
They're not going.
They still don't think it'sgoing to be in February.
Here's what I find interestingis how many rate cuts there are
this year, or predicted ratecuts this year.
Anz says it's only going to betwo.
Both CBA and Westpac say fourand NAB says five.
Speaker 2 (01:00):
Okay, so everyone knows my opinion on interest
rates and the effects thatthey're supposed to have.
It depends on how stimulatedthe government wants the market
to be.
Now at the moment, we've got apolitical government in play
that isn't focused on bigbusiness, but actually focused
on the individual.
So we've seen Anthony Albanesecome out with some policies in
(01:21):
regards to a single tax rate.
Not a single tax rate, buteverybody getting a tax cut and
that was, I believe, that cameout the 1st of July 2024, and
everyone's income went up,except for the people that were
earning like over 120,000 or so.
What we've seen is they wantmore people to be able to afford
their homes and to have morepeople to be able to afford
(01:41):
their homes, they needeverything to be a level playing
field.
Yeah, okay, so they wouldpossibly not want to drop rates
too much because they're stillallowing in a whole bunch of
migration, and when you'reallowing more migration, that
means you bring more buyers tothe market, because if we let in
more wealthy individuals fromIndia, from China, from Arab
nations, what they're going todo?
(02:02):
They're going to come toAustralia.
They're going to do.
They're going to come toAustralia.
They're going to see property,they're going to see how it
grows here and they're going togo.
I should buy a property here, ofcourse.
Yeah, so more people enter themarket.
What they want to do is theywant to try and find that sweet
spot that will allow enougheconomic activity where they
don't have builders goingbankrupt every other week, yeah,
yeah, yeah, but also not haveprices skyrocket.
(02:23):
So you mentioned that.
Anz, was it that predicted tworate cuts?
Speaker 1 (02:28):
Yeah, ANZ says just two.
Speaker 2 (02:30):
I actually agree with that, you reckon.
I agree with ANZ saying thatthere's going to be two rate
cuts, because what we've seenalso is the Reserve Bank of
Australia dragged their feetwhenever it comes to this sort
of stuff.
They dragged their feet when itcame to putting the interest
rates up.
Speaker 1 (02:47):
Originally To take it down.
Speaker 2 (02:48):
Yeah, and then they dragged it to take it down again
.
Everyone is expecting oh youknow what February rates are
going to come down.
Rates are going to come down.
I don't think so.
Speaker 1 (02:56):
Do you think it'll happen in May I?
Speaker 2 (02:57):
don't think it's going to be May.
I think it's March 16th or so.
Okay, something around there.
There's a point around thenthat's going to be for the
Reserve Bank of Australia tomeet again and declare if
they're going to put interestrates up or down.
The head of the RBA, how sheoperates, how certain decisions
are made and I always see thembeing a step behind, apologizing
(03:22):
and then saying here's a rebate, here's $200 for your
electricity bill.
Speaker 1 (03:28):
Here's yeah.
Speaker 2 (03:28):
Band-Aids, yeah, and then they throw a Band-Aid at it
because they want to be moreconservative.
Okay, they would rather ask.
They'd rather ask forforgiveness, to be honest,
because we've seen Australiansstruggle.
I see it every single day.
I see like it used to be yep,first time buyer 70k, let's go
get you an apartment yeah,what's well, there was no
problem with that.
Speaker 1 (03:48):
There was no issues.
Speaker 2 (03:49):
You're buying an apartment now.
We've got the supply issues,where they're not approving as
many dwellings.
We've also got the interestrate issues they're not coming
down.
And we've also got peoplepurchasing like three, three
siblings or um two couplespurchasing together, going and
buying a house together.
So we're not seeing what weused to.
Okay, but they don't care.
Speaker 1 (04:08):
No.
Speaker 2 (04:08):
They don't care.
At the same time, they justthink to themselves okay, it's
just numbers, it's just numbers.
They don't see the everydayindividual.
I think there was the housingminister for New South Wales.
I'm not too sure, but there wasa recent video of them being
interviewed online talking aboutrental prices and they go yeah,
you can rent a property inSydney for a couple hundred
(04:29):
bucks.
Oh, I remember this video it wasa two-bedroom apartment and
they're like you can rent atwo-bedroom apartment in Sydney
for $200 a week.
No, yeah, that sounds aboutright.
Yeah, there's plenty ofapartments in Sydney that you
can rent for $200.
I wish, right, yeah, there's,there's plenty of apartments in
(04:55):
sydney that you can rent for 200.
I wish the statistic was since2020.
Speaker 1 (04:58):
Yeah, okay, out of the 25 000 units that were
listed for rent in that period,only 23 have been even close to
200.
Yeah, and that was before rentsjumped up 100 so crazy.
Speaker 2 (05:03):
They're out of, completely out of touch so, yeah
, you have individuals that arecompletely out of touch making
decisions for 97% of Australians.
Speaker 1 (05:11):
And how does this affect you, the viewer that 97%?
Just to put this into context,what this interest rate actually
would mean for you, these cuts.
Speaker 2 (05:19):
I'm just going to chime in.
If you're expecting a rate cutnext month, I'm going to say
there's a 50-50 chance.
Speaker 1 (05:26):
But even if there's a rate cut, if the rate cuts do
happen, if it's just the one, ifyou've got a $600,000 home loan
, you'll save about $92 a month.
Two rate cuts you're saving$182 per month, and four cuts,
$357 a month.
That's not chump change forpeople who are, you know, at
this end of the market.
Speaker 2 (05:43):
A $600,000 loan, $357 a month is how much I'm saving
people on average when they justrefinance.
There you go.
Okay, because a lot of peopleare on revert rates.
They don't even know it.
The banks have put rates up onthem.
They don't even know it.
I said it last episode yeah,banks are there to make money.
Speaker 1 (06:07):
But $350 a month.
Speaker 2 (06:08):
That equates to what?
$4,400 a year, somewhere aroundthat.
All I know is it's food, youknow what I mean.
It equates to 50, top 12, 600.
It equates to about $4,200 amonth.
I got that $357.
That is a huge amount of money.
That $4,200 a year sorry,$4,200 a year is a huge amount
of money.
From after-tax income.
I did a study recently where Iwas calculating the median
(06:29):
average salary in New SouthWales somewhere around $98,200,
somewhere close to that $98,200.
After-tax is about $71,000,$73,000.
Food, laundry expenses, yourmortgage.
So you're saying that if you'vegot a mortgage of six hundred
thousand dollars, you're goingto save yourself a hundred bucks
(06:49):
a month.
Let's say right, yeah but what'syour monthly repayment ready on
that?
It's already forty two hundreddollars a month.
Okay, so we take that seventyone thousand and we minus forty
eight thousand odd dollars fromit.
What are you left with for theyear?
You're left with twenty threethousand dollars.
Petrol, groceries, food.
I want to go out.
I just want to do anything.
Literally, you, what are youleft with for the year?
You're left with $23,000.
Petrol, groceries, food.
I want to go out.
Speaker 1 (07:06):
You just want to do anything.
Literally, you want to just goto a movie.
Speaker 2 (07:10):
It's very, very, very difficult for people out there.
You're praying for five ratecuts.
That is what you are actuallyhoping.
The statistics tell it.
People are struggling.
They need the rate cut to come.
But I honestly believe, justfrom what I've seen and the
behavior of the Reserve Bank ofAustralia, the behavior of the
housing minister, you just don'tfeel confident.
(07:32):
I'm not confident.
They said, oh, we're going toincrease the supply of housing.
Where's the increase?
The only place it's increasedis Victoria.
I guess what's happening inVictoria right now?
They've introduced a new landtax so there's nobody buying
property to make money anymore.
Speaker 1 (07:48):
Yeah, they're buying it to live.
Speaker 2 (07:50):
And relocating is not just an easy thing.
Speaker 1 (07:53):
No, I mean, if you've got family here, you've got to
ditch them.
It costs money to get all yourstuff there.
Speaker 2 (08:00):
Finding a new job.
Finding a new job Socialcircles.
Speaker 1 (08:06):
Yeah, I mean there finding a new job.
Finding a new job socialcircles.
Speaker 2 (08:08):
Yeah, I mean literally everything my wife
wants us to move to melbourne?
Speaker 1 (08:09):
no, no, just in general just in general.
Speaker 2 (08:11):
Okay, move from illawong.
I've lived in illawong all mylife.
When I get back to illawong, Ifeel relaxed.
It's home.
It's not even home.
There's less traffic around.
There's um you, there's nopublic transportation, which is
a good thing, because that meansI don't have kids running
around a train station causingmischief and stuff.
It's peaceful for me.
(08:31):
When she tells me I want topick up and move and I want to
go here or I want to go there,do you know what I think to
myself?
I think to myself there's ninelevels of stress above me
because I'm like, oh my God, ifwe do this, that means the sun's
not going to be there.
And then there's going to bekids coming near my house and I
don't know the neighbors and I'mLebanese.
What if they don't like that?
(08:52):
There's just so many thingsthat are involved with picking
up and moving.
One of the guys that works atit Simple Brian.
He moved from Maryland down toOren Park or one of the suburbs
close to oran park right, sothat camden area.
Yeah, he told me it was the mostpeaceful experience of his life
and he doesn't want to ever goback to maryland.
(09:12):
Okay, he'll go back, he'llvisit, he'll go see his friends
and stuff.
But picking up and moving froma peaceful area to somewhere
that's chaotic is huge.
If you're not from melbourne orvictoria, okay, it might be
great because there's vacantapartments and stuff, but if
you're not from there and youdon't know the area, it is scary
.
So I don't like this internetdiscourse or people going online
saying oh just really, okay,you can find a cheaper property.
(09:34):
Okay, cool, is my job downthere.
Speaker 1 (09:35):
Yeah, literally just everything.
It's not easy If you've got noroots yeah, go wherever you want
.
Speaker 2 (09:42):
It's going to be very interesting what happens with
the interest rates and we arehoping there are cuts because I
want to see people be wealthyagain.
I want to see people be excitedagain.
I walk around and I see peoplelike they've got their chins
down.
They hate everything.
The only time I see peoplehappy is when I'm in Bondi and
it's a bunch of backpackersbecause they don't have to worry
(10:03):
about that stuff.
Speaker 1 (10:04):
They don't have to worry about that sort of stuff.
They're here oh.
Speaker 2 (10:07):
I'm here for a holiday.
I'm going to go swimming inBondi and then I'm going to go
do this and you're just likecool.
Good for you.
Speaker 1 (10:11):
Yeah, enjoy your Asahi balls.
Speaker 2 (10:18):
I'm going to dip my feet, people that are struggling
in Australia, and I really,really hope the Reserve Bank of
Australia looks at it and goesoh, it's not unemployment, we
need to look at it'sunderemployment.
It's not the CPI, becausethere's a lot of people that are
actually still spending money,but 98% of Aussies aren't and we
(10:41):
want to be able to help them.
Speaker 1 (10:43):
Yeah Well, my uneducated opinion on whether or
not there's a rate cut coming.
Speaker 2 (10:47):
I think it's a 50-50 chance of next month, yeah, and
I think it's an 80% chance.
If it doesn't happen next month, it's like an 80% chance of the
month after.
But you do think it's going tohappen this year.
No, it needs to happen, yeah,Otherwise they Let us know in
the comments.
What do you think?
Do you think there's going tobe an interest rate cut next
month, or do you think MichelleBullock is just going to drag
her feet and say you know what?
(11:09):
Not enough people have losttheir job yet.
But let's get to some positivenews.
The statistics have come outfor the best places to invest in
Sydney in 2024.
So if you purchase in this area, you made some serious money in
2024.
At number 10, Edenza Park grew15.5%.
At number nine, Weatherill Parkalso grew 15.5%.
(11:31):
Number eight St John's Park15.7%.
The Crows are making money thisyear.
Number seven Traeger 15.7%.
Where's Traeger?
Number six Lansvale, at 16.2%.
And number five, MountPritchard, which came in at
16.2%, and number five, MountPritchard, which came in at
16.8%.
Number four was BonnyrigHeights at 17.4%.
Number three is Emerton, whichis 17.9%, and number two is
(11:55):
Wiley Park 18.5%.
And number one is Bonnyrig.
The Croatians Wait, sorry, Ioffended people, the Serbians,
at 19% growth in 2024.
Speaker 1 (12:06):
Yeah, even Edenza Park, Weatherill Park, St John's
Park that's where the church isand everything.
Lots of crows around there.
Man, the Balkans are making alot of money, Damn.
Speaker 2 (12:16):
They figured out how to make as much concrete as
possible.
Speaker 1 (12:19):
Water that concrete, big and strong.
Speaker 2 (12:22):
I'm looking at these statistics.
I can't believe it is how muchWestern Sydney grew in value in
2024.
Airport right.
Speaker 1 (12:32):
I don't think it's got nothing to do with the
airport.
I think, one, people still wantto live in Sydney and two,
these places are relatively farmore affordable than anywhere
east and north.
Speaker 2 (12:39):
I don't think it's to do that.
I think it's to do withcommunity.
Speaker 1 (12:42):
Oh yeah, 100%.
I think that's playing a part.
Speaker 2 (12:44):
I think the communities have become more
centralized yeah rather thanpreviously.
There was the uh aspiration of Ineed to get out of punchbowl, I
need to move out east.
I'm just using this as anexample.
Okay, it's no longer, I need.
I need to leave punchbowl, Ineed to get out east.
It's I need to leave punchbowl.
I need to get to strathfield.
Ah, yeah, so people still wantto remain connected with their
(13:04):
community but don't want to betoo far away at the same time.
What we have seen previously iswhen there was relocations and
upscale and I want to move to abetter area it used to be I've
got to move far away.
Every single sub-suburb or cityarea, local government area,
has its premium.
Now you go to the LGA of camden, oran park's killing it.
(13:28):
Yeah.
You go to the lga of uhcronulla, sutherland shire.
Cronulla is absolutely killingit.
But then you go to the lga ofbankstown, canberra city council
, bellfield yeah, oh yeah, wetalked about this has spiked up
in value like crazy bel Belmore.
Belmore is doing remarkably well.
So you see all these littlesubsections.
(13:49):
People don't want to move toofar away, but what you are
seeing is okay.
You know what?
I want to live in Bonnyrig nowbecause that's the good area.
Okay, People don't want to betoo far away from their schools.
People like the traditionalcommunity family values.
Speaker 1 (14:02):
This is true, like my sister.
Now she moved, my parents movedback in.
Like they moved back out west,basically towards the Crow
community, out near Edenza Park,st John's Park, and she loves
it there.
She doesn't actually want toleave.
Yeah, like we bought a housetogether and I was like, come
live with me.
And she's like, no, I'm goingto stay here.
I'm like all right crazy.
(14:23):
She goes to yeah, she goes toCroatian language school, she
goes to church, she goes to allthese little crow meetups, go
Jordan.
I know right, it's insane,that's amazing, that's great to
hear.
So I think a lot of people arefeeling that.
And now that there's moreinvestment in terms of
infrastructure with publictransport, you're getting the
metro line towards.
Have you been on it?
No, actually, because I'm onthe train line.
Speaker 2 (14:46):
It's just a train.
Yeah, I've been on the metrosbefore.
Speaker 1 (14:48):
Yeah, it's just driverless trains so they can't
strike.
Speaker 2 (14:59):
But it's awesome to see Western Sydney really,
really reinvested itself anduplifted itself 100%.
Speaker 1 (15:01):
Western Sydney's a good place.
Speaker 2 (15:02):
There's only so much land.
As we know, sydney is beach,blue mountains.
You can build in the middle.
There's only so much area.
It's great to see that there'sother areas that are doing
really well.
Some of the biggest houses I'veever seen are like in like
drool, oh drool.
Speaker 1 (15:18):
Yeah, man, the mansions down there.
I used to.
My parents used to live there.
Well, myself as well.
Yeah, I used to go get guitarlessons from this guy who lived
in a normal house but on thisstreet, literally you had who's
the woman from A Current Affair?
Tracy, tracy, yeah, tracyGrimshaw used to live there.
Yellow Wiggle was living downthere.
(15:38):
Huge, humongous mansions,castles some of them, and I'm
like it's crazy.
Speaker 2 (15:50):
And they're all hidden on these side streets,
like not an old northern road.
You won't well, you see some ofthem especially.
I know the area well.
No, but it's just, it's.
It's great to see that.
Um, it's not just easternsuburbs that are always creeping
up, yeah, but other suburbs.
We've also got the top 10apartments and their growth, so
the apartment locations thatmade the most money and these
are really different at 10.
We have brightonance, which grew10.3% At 9,.
We have Wyoming, which grew10.3%.
At number 8, summer Hill 10.5%.
(16:12):
7 is Queenscliff at 10.7%, 6 isKingswood at 11.6%, number 5 is
Camperdown at 11.8%, number 4is South Windsor 13%.
Number 3 is Bass Hill at 13.5%,Number 2 is Strathfield at
15.3% and number one is Montereyat 18.3%.
(16:32):
I can't believe Kingswood is inthe list.
Kingswood is next to Penrith,isn't it?
Speaker 1 (16:37):
Yeah, it's scary.
Speaker 2 (16:40):
But from my recollection they started
gentrifying around the trainstations.
Speaker 1 (16:45):
Yeah, there is like apartment buildings there, but
it's not like it's solvedanything.
I'm not going to lie, myfiancée, her family, is out
Penrith way and like Penrithitself is fine, but Kingswood
specifically, like we would gonear the train station and stuff
there, you feel it.
Speaker 2 (17:04):
I think the reason for those areas growing in so
much value is because people gotpriced out of Sydney, so that's
why they're probably moving toKingswood and that's probably
raised the price there as well.
Speaker 1 (17:13):
Yeah, I guess I mean the median price.
There is $573,000, which ismuch lower than everything else
on this list.
Speaker 2 (17:21):
So that means it was previously the year before
$520,000.
Speaker 1 (17:25):
Yeah.
Speaker 2 (17:25):
Okay, If it's grown by that much.
That makes sense.
To me.
It does make sense Because alot of people came to the market
.
Where in Sydney now can you getan apartment for $570,000?
Speaker 1 (17:34):
Kingswood, apparently , but that's what I'm saying.
Speaker 2 (17:36):
So if you're earning a combined salary.
I'm earning $60,000, you'reearning $60,000.
Yeah, we combine Kingswoodtogether.
Speaker 1 (17:42):
Okay, that makes sense and it's a place to get
started Exactly.
I'm surprised Strathfield is inthe list.
I thought Strathfield had a bitof money behind it and the
median price is $765,000.
Speaker 2 (17:51):
So the Strathfield houses?
Speaker 1 (17:53):
that spark your value .
Speaker 2 (17:54):
They're the expensive ones because there's something
called the Golden Mile.
Speaker 1 (17:57):
I've heard of this.
Speaker 2 (18:01):
So the Golden Mile is ?
You've got one street, I thinkit's called the Boulevard, and
anything in between there iscalled the Golden Mile.
It's all the substrates inbetween, right.
That's why, like, how close doyou live to the Golden Mile, how
far away do you live to theGolden Mile?
Those are the areas that sparkin value in Strathfield and it's
all the houses there's a lot ofapartments there, heaps I like
the buildings there.
The apartments there don't doas, but now they're starting to
(18:23):
because, Strathfield isliterally the central hub of
Sydney.
Speaker 1 (18:27):
It's a very convenient location, extremely
Big train station as well.
Speaker 2 (18:31):
Exactly, so that train station can take you
basically anywhere in Sydney,literally, yeah, and so what
that has allowed is a lot morepeople to move in, but no more
development.
So guess what happens?
I need to go to Parramatta forwork and I also need to go to
the city for work.
I'm going to live inStrathfield, I need to go visit
my family in the SutherlandShire, or I need to go to ride
because I've got work there.
(18:51):
Strathfield is the convenientlocation.
This is true, and depending onwhat side of Parramatta Road you
live on from Strathfield, thatwill depend on how much the
property is valued at.
So the closer you are toParramatta Road, the less the
value is going to be.
Yeah, because Parramatta Roadsucks.
Yeah, absolutely chaotic.
But the closer you are to Ithink it's to Hume Highway, the
(19:11):
southern side of Strathfield,it's also cheaper there, so
literally in the middle ofStrathfield.
Speaker 1 (19:16):
That's your golden, your golden one.
Speaker 2 (19:20):
My favorite thing about this statistic was we got
Brighton-LaSands and Monterey.
Okay, so Monterey is number oneand then Brighton-LaSands is
number two, number 10.
Okay, so everything seems to bein between.
If you know Monterey andBrighton-LaSands, they're right
next to each other.
I think, there might be asuburb in between, but they're
very, very close Same generallocation.
(19:41):
Yeah, I think it's really coolto see that it's not all
disconnected.
They're actual suburbs that arefeeling the trickle-down effect
.
So Monterey, I know the suburbquite well.
It's actually nice, it'sbeautiful, it's on the beach.
People love going to Monterey.
Don't know many apartmentsthere, but it's actually a
really, really nice location.
(20:01):
I'm assuming monterey spiked invalue for downsizes because
you're not in brighton where youget all the um, hectic,
mischievous stuff of the kids.
You know, brighton was ourthing back in the day.
Speaker 1 (20:12):
I don't know if it was yours uh, no, I was in the
hills, so okay, south sydneyhonestly mystery okay.
Speaker 2 (20:19):
So brighton was our like um, it's, it's.
It's where everyone used to gorun a market and stuff.
So there's a chance that a lotof people don't want to go there
to downsize.
But Monterey two suburbs oversame beach just as beautiful.
You're in a very convenientlocation, depending on if you
can drive or not, and I thinkthat's the reason why it's
spiked up so much.
But it's really cool to seethat there's not too much
(20:41):
disconnection in this list.
Now another list came out thisyear of where we think, okay,
where to invest next?
Okay, now, this is really cool.
So there's freemantle in perth,yep, which has a population
that has grown by 14.
There's 29% less sales thanwhat they were last year.
(21:05):
Yeah, and then there was 77%less buildings to be able to
approve, which means which meansa lot more people in the market
.
They want to buy, they want tobuy close to the area.
They don't want to leave theirparents Supply and demand.
Then we've got Bayswater inPerth, which is very similar.
We've got Jundalup McKay inQueensland and Gladstone in
Queensland.
Speaker 1 (21:25):
Yeah, regional Queensland and Perth.
I don't think this is really ashock to anyone that those
places are doing great, to mybest.
Speaker 2 (21:33):
New developments, new roads.
You don't have the you knowarchaic old stuff.
It's a lot easier to get inthere.
When you build a newdevelopment and it's a lot of
unoccupied property, you where.
When you build a newdevelopment and it's a lot of
owner-occupied property, youoften see a lot of really good
people coming in to buy in thatlocation and it just makes
people more comfortable.
Yeah, okay, and there's a reasonwhy that people think these are
the best places to invest.
Or the study says that theseare the best places to invest
(21:55):
and that's because of restrictedsupply.
Speaker 1 (21:56):
Yeah, that's it.
It's just literally simplesupply and demand, right, it's
just it.
Speaker 2 (22:00):
So what we think is going to happen in 2025,
obviously these are based onjust a random prediction and
stuff.
We could see Sydney boom again.
We could see Queensland boomagain.
I personally think Adelaide isabout to have their run.
Actually, South Australia is inthe mix, according to the
numbers.
Speaker 1 (22:15):
Okay.
So what do they say?
Yeah, prospect Walkerville,mitcham, port Adelaide, east,
Tidry, gully and Onkaparingathat's a fun name.
Speaker 2 (22:21):
I just think that Adelaide hasn't had its run
compared to WA.
Speaker 1 (22:25):
No, yeah yeah, surprisingly, because it's
convenient for, likeMelbournians, melbournites, I
don't know which one.
That is Because it's not like.
I mean, obviously it's far, butit's not that far.
Speaker 2 (22:36):
No, it's not.
And good wine, they've got alot of churches, right, they do,
yeah, yeah.
They do.
Speaker 1 (22:43):
Pretty churches, I mean.
Speaker 2 (22:44):
Adelaide.
I think they're due for theirnext run.
I think that's going to be theboom in 2025.
Okay, I think Perth has had itsrun.
We had David on this show.
He thinks Perth had its run, soit'll be really interesting.
Let us know in the commentswhich suburb or city do you
think is about to have its runin.
Speaker 1 (23:07):
Our favorite segment, the client profile of the week.
Are you ready for this one?
Yeah, so, bill.
He's buying his first house.
Everything has gone smoothlyMortgage is in check, money sent
.
Next comes settlement.
The selling agent has told you,the broker, that the bank has
given you the payoff, which isway more than expected.
As it turns out, the originalowner, the seller, has stopped
(23:29):
paying the mortgage.
This isn't a short sale or apre-foreclosure situation.
The listing agent didn't do anydue diligence regarding the
mortgage.
What would you do in thissituation?
Contact the solicitor.
Speaker 2 (23:41):
Yeah, get the law involved.
So clients already approved.
Speaker 1 (23:44):
Yeah.
Speaker 2 (23:44):
Clients approved for more than what they're expecting
.
Yeah, have they spent any ofthe extra money that they had
saved?
Speaker 1 (23:52):
No, they're confused because the extra money that
they had saved.
No, they're confused becausethe settlement hasn't happened
yet.
You're getting this informationat settlement.
Speaker 2 (23:56):
No, no.
So we got the formal approval.
Client has been formallyapproved for more than what
they're expecting.
They're expecting 600K andinstead they got 700K on a
formal approval.
They originally had a depositof 300,000.
Now that they could shrink to200,000, correct, yeah, okay,
there's a few ways that youcould play this.
How bad do you want theproperty?
(24:17):
Okay, and get the solicitorinvolved.
You've got to get the solicitorinvolved because the real
estate agent didn't do their duediligence.
They didn't tell things to lineup the vendor, so the person
selling their solicitor didn'tdo the job properly, either
because they didn't check thepexa workspace account, or they
didn't check the accounts tomake sure that there was no
shortfall on their end, or therewere no issues with the bank
accounts on their end.
I mean, it's simple.
(24:37):
Just look at the.
So now the vendor is incomplete breach of their
contract and at the same time,they need to pay off their
mortgage.
Okay, if the vendor is broke,then they are going to be
completely screwed.
Okay, the purchaser couldpossibly assist in paying that
loan down.
But I would only recommend.
So it depends on how much themortgage is.
If the mortgage is $10,000 amonth or something, and they
(25:00):
missed $20,000 in repayments.
No, don't pay that F that.
Let's say it's a few hundredbucks.
We're short a few hundreddollars.
You call up the solicitor.
You ask them what can we do?
Is there a possibility?
Because a real estate agentdidn't do their job properly?
Tell them to take lesscommission, otherwise it's going
to be on them that the saledidn't go through and they could
(25:22):
be held liable because of it.
They could be held liablebecause the vendor didn't pay
their accounts on time.
They can also be liable becausethe purchaser hasn't got their
property.
You can also contact theirsolicitor, the vendor solicitor
why didn't you do your diligence?
You've had this loan in frontof you for eight weeks.
You've had this contract tosell in front of you for eight
weeks.
(25:42):
These are small things you cando.
Or you can rescind the contract, get your money back and just
go find another property topurchase because the vendor
hasn't held up their side of theagreement.
You have okay, and you can alsocharge them penalty interest
for every day that it doesn'tsettle.
Speaker 1 (25:57):
There you go.
Get the law involved or backthe hell out of there.
Speaker 2 (26:00):
Thank you guys so much for this episode of the
Finance Show with Joe.
Let us know what you guys thinkabout the interest rates and
let us know where you guys thinkthe next best investment spot
is in New South Wales.
As always, I'm Joe, I'm SamShmoe and we will see you on the
next episode.
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