Property in 2024

I don't know if you can tell, a bit of a croaky voice at the moment. I've been a little bit crook the last kind of 3, 4 days, which is a little bit rough. I haven't been crook in a long time. In any case, we are here and we are here to talk about property in 2024 and what I see is going to be happening. Let's have a quick chat about 2023. Let's have a bit of a talk about where I see the market going in 2024. And I want to invite you to come along to a Profit with Property event that I'm running next week. I think it's on the 8th or something like that, 7th or something. I can't even remember the date it is, but there's a link for you to register to come along to this free property event where I'm going to be diving deep within the property markets within Australia, but also really talking about how do you win in the property world in 2024. We're going to be talking about strategy, We're going to be talking about the maze of lending, which is going on. This is one of the biggest differentiators between those who build wealth versus those that don't in the property world. We're going to be talking about how to access off-market deals. So if you think it's a good idea to be getting into property in 2024, 2 things. A, let me know in the comments if you think 2024 is a great year to be getting into real estate. And if it's not, put that in the chat as well. and let me know why you think that is the case. So why do you think it could be a good idea or why do you think it's not a good idea to be investing in real estate in 2024? And secondly, make sure you register. There's a link in the comments. Make sure you register. Come along to this free event that I'm going to be holding literally next week. Now, as I mentioned, if I've got to pause every now and again, take a bit of a drink, throat's a little bit croaky at the moment, so I'm sure you guys will forgive me. So let's duck into it right now. First things first, let me know if you're joining live, Let me know that you're joining live. If you're watching this replay later, let me know that as well. And let me know that you can see and hear me okay. That would be fantastic, just so I know that everything's working. I'm not going to be sitting here and talking to myself for a fair period of time. All right, let's see how this goes without me dying in the meantime. Okay, team, so let's have a quick chat about what was going on in the general conversation At this time last year, at this time last year, what were some of the big headlines that people were talking about? Pop that in the comments as well. Like what were the what were some of the big headlines that people were talking about? Right. One, for example, was that there's going to be this massive mortgage cliff which is going to be going on. Right. That's one thing. Wow! It's this thing that popped up with a bubble. I wonder if it does that. Oh, it does that. Look at that's amazing. Okay. Sorry, I'm just amusing at some of this tech stuff. I just did a thumbs up and it popped up with a. with a thumb up bubble on the screen. It's incredible. So new features, gotta love it, right? So they were talking about mortgage cliffs last year. They were talking about the property market is going to be dropping between 10% to 20% is some of the things they were talking about. Obviously, the main conversation was all around inflation all over again and interest rates all over again. Yeah, Jet, for sure. So Let me— how do I show that? I'm sure I had this challenge last time. Hey, yeah, here we go. Yeah. So yeah, Jet, 100%. So rising interest rates and fixed interest rate periods were expiring, like, and so they were talking about the property market is going to plummet by between 10 to 20%. Now, did that happen is the question? No, it definitely did not. Does anyone actually know how much the property market grew by overall over the last 12 months in Australia? It was predicted to drop by 10 to 20%. What did it actually do? Does anyone actually have a— does anyone know? Or what do you think it did, like in terms of percentage growth rates? So while waiting for some answers to kind of go through, there's always a bit of a delay. The answer is it actually grew on combined capital city average of 9.9%. So apart from dropping by 10% to 20%, like what the banks were saying and so-called economists were saying like that, if you rewind back to my video I did about the same time last year, I said that was absolute nonsense. It was never going to be happening. The underlying fundamentals that are driving the property market are way too strong for any of that type of stuff to go on. And lo and behold, it grew by 9.9%. Now, there's some good reasons for that. It didn't grow everywhere, of course. There's no such thing as the Australian property market. It's made up of submarkets within submarkets within submarkets. The markets which led the way was certainly WA. So Perth and Brisbane led the way very strongly. South Australia was certainly very strong as well in terms of capital cities that grew really, really well. Some of the laggards was Canberra due to the— it had quite an oversupply of real estate. So one of the only areas in the entire country. And Melbourne because of all the stupid decisions that the government made down there and created this deficit, budget deficit, this big black hole they've got to try and tax their way out of and all the ridiculous new levels of tax they're putting in. So unfortunately, the government down there have gone and really shit on the market down there, which is sad because Melbourne was one of the fastest growing capital city in the entire country, tipped to overtake Sydney. But what's happened now is that Brisbane property prices, for example, have taken over Melbourne in terms of median pricing and things like that. Hopefully Melbourne's going to pull itself back out again. It was the place where the largest level of immigration is moving in from overseas. It's a really strong and huge infrastructure project, so much good stuff going for it. Hopefully this kind of issue that the government has gone and literally created isn't going to be hampering it too much. And one of the big surprising ones, Perth is no surprise with the growth level that it had. It had been a sleeping giant for a little period of time. It was definitely due for another growth rate, especially with the affordability pathway. But that's part of the big conversations, especially in South Australia. It's got a really, really clear vision of where it's moving in the future. And it's kind of been one of those areas where a lot of property investors don't really— you just don't go to South Australia. But it's a mad changing type of area for sure. And Brisbane is with the infrastructure and the drive towards the 2030 Olympics. It's all going really, really strongly. So Here's the reality matter. Those are markets which did really, really well. Now we've got to be thinking about, well, what are some of the fundamentals behind the property? And so we're going to talk a little bit about this and then let's come into and talk about where we're heading in 2024. So here's the big conversation, right? Australia kind of immigrated its way out of economic stuff. We had record immigration last year. 518,000 people arrived into Australia net, net. So 518,000 people came to Australia and that takes into consideration everyone that left as well. So the population grew by an absolutely extraordinary amount. Now, at the same time, we had no supply, literally no supply. In the last 2 years, there have been We've got some figures here. 347,000 properties completed over the last 2 years in Australia. Now, that's on average about 170,000 properties a year. So radically less than what the government is proposing. Oh, we're going to make a promise. We're going to build 250,000 properties a year for the next 5 years. I'm like, come on, team. Never in Australia's history have we built 250,000 properties a year. The closest we got was 220,000. And that's when we didn't have a huge undersupply of skilled labor. That's when building companies and construction companies weren't going out of business at a rate of knots. That's when the cost of materials wasn't so high. That's when interest rates weren't at the levels that we're talking about right now. So here's the reality of the matter. It's been a whole massive perfect storm has hit the Australian property market in terms of its ability to be able to put any type of solid supply into the market. And coupled with the government, which is absolutely inept at being able to bring any type of supply in the marketplace, and, you know, charging like wounded bulls when it comes to, you know, development fees and things like that, and, you know, taking their piece of the pie, and virtue signaling that they're doing all these things and we really care about people having a home to live and rentability and all this type of stuff. But what they're really doing in the background is 2 bits of bugger all is really what's kind of going on at the moment. And so it's created this perfect storm behind the scenario. What's also impacting the level of supply that comes on the marketplace is just because 347,000 properties were completed in the last 2 years alone, what you really have to ask the question about is, is there all that coming onto the marketplace for everyday people to be able to buy? And the answer is absolutely not. Build-to-rent has come into the market in a big storm. And it's being pushed and supported by the government in a big way because that's where they see to be able to house a— that's the social housing system, which is of the future. And what the reality is that we need to understand is that property ownership is going to be an absolute luxury for the future. It's not going to be, and it probably is for a lot of people right now, it's a harsh reality of the matter. Most people are going to wind up being in a lifetime of renting Apart from when you receive a property passed down from parents and things like that in the future. It's going to be a generational asset as opposed to something that you kind of buy your way into, like the great Australian dream. What's been fascinating and scary about seeing the statistics around first home buyers now, the average first home buyer is now, I think it's 36 years of age. That's the average first home buyers. And the number of first home buyers who are now in their 40s, has risen by 60% over the last 4 to 5 odd years, right? 60% increase in first home buyer age bracket. That's a really scary situation for people coming into the market for the future. Just the affordability is not there. It's costing, I think, 11 times the average wage just to kind of pull together a deposit for the median house price in Australia, as opposed to what it was even 10, 15 years ago, it was only like 2 to 4 times. 4 times, right? So it's radically, radically different. Now, having said that, that's not to say there's not opportunity. That's not a, oh, now, well, I'm young, I might as well just give up because there's no hope. One of my clients brought this up with me the other day and going, oh, well, what should I be thinking about this? Because a lot of people around them were going, well, we're not even going to be, you know, in younger generations, millennials. I don't know what I am, 40. What is that? I'm Gen Zed. I'm Gen— no, I'm definitely not Gen Zed. Shit. Gen Y, I think, is what it is. I seen the first 67 on the weekend. I forgot what generation I am. So Gen Y is— this is interesting. Yeah. 67 on the weekend. Yeah. I mean, this is some of the stuff which is going on. And so people who are 20s and 30s are sitting there going, well, I won't even bother. I'll just wait till my parents pass down the property. to me. I think that's such a shit attitude, such an entitled attitude, and it's a lazy attitude. I've got to be honest. Maybe you can't go and buy the big 5-bedroom house 10 kilometers from a CBD with the type of money you can afford. Great. Okay, go find something smaller. Get yourself on the property ladder to begin with. You can go buy a couple of 2-bedroom units in Brisbane, for example, or WA or South Australia for that $500,000 type of mark. Maybe it's not going to house a growing family or things, So the reality of the matter is that you've got to be thinking about, well, where are you going to start on the property ladder and how are you going to build your way up? And this is like, there's always a possibility. You've got to get out of lazy thinking. There's possibilities for everybody to do this. Now, do I think the same possibility is going to be there in 10 years? No, I don't. I think the pricing is going to be way out of the marketplace. You're going to have to go way regional in order to be able to get into the property market at that point in time. And quite frankly, a lot of the population want to stay locally. There has been a big move for people moving regionally for sure. Yeah. for sure. However, vast majority of the population want to live near the eastern seaboard of Australia is really where the process actually is. Yeah, this is interesting. So many people from New Zealand in their early 20s pool their deposit and buy something together and great. You find a way, you find an excuse and that's the way I think about it. So I mean, I got started in the property market I had $9,000. I had no money. I got the first homeowner's grant stamp duty savings. I mean, the money, the government's just throwing money at people like $30,000, $40,000 to be able to go buy a first property, right? There's always a way to be able to do it. It just depends on how serious you are. Now, barring me starting on a rant about that, I'll pull myself back. So going back to what has happened in the last kind of 12 months, we also saw household wages has gone up 10% over the last 2 years as Well, what was really interesting, I've got some stats over here that I got from Propertyology. This time last year, sorry, right now there are 247,000 properties listed in Australia for sale. Now that's 32% lower than what it was 5 years ago, 32% lower, but where population has grown by 1.7 million people. 32% lower, but the population has grown by 1.7 million people. I've got another one for rentals. So the rental crisis actually began about 7 years ago. So right now, so 7 years ago, there were 78,000 properties listed for rent. Now there's only 30,000 properties listed for rent at this point in time, and the population is 2.5 million people greater than what it was. Now, so what this is all creating is this perfect storm around real estate, which is going to continue into 2024. It's not going away anytime soon. Our immigration is still expected to be 375,000 people net moving into Australia in 2024. We have a huge undersupply of real estate, which isn't getting better anytime soon. In fact, it's just getting worse. Every day there's more news around more construction companies kind of going out of business. With the constraint on supply of materials and such, especially with some of the wars and things that are going on overseas. So there's still so much which is happening. Wage growth is expected to stay really, really strong. And on top of that, some of the big news that we're looking at in 2024 is those inflation figures and those interest rate figures. Now, let's do a quick poll. Who here, what month Or so let me put this right. When do you think interest rates are going to start dropping in Australia? Put in the chat for me. Let me know. When do you think interest rates are going to start dropping in Australia? Because these are all some different things that are going to impact the property market as we move into 2024 and what's going on. Okay, so we've got Amanda says July. Okay, we've got you know late twenty four twenty four. Richard says who else? Okay, we're in exchange rates because back on a one point four. Yep. End of year next year. Yep. Mid year says Amos. Elkie is late 2024. Yeah. So I think it's going to be kind of September or next year is where my prediction actually is. I was a little bit later than that. But what's interesting is that we're starting to see the media change their tune. Have you noticed that the media conversation around interest rates and inflation and things like that, it's started to shift? And it's always a bit of a leading indicator because as much as I don't trust the media as far as I can kick them in terms of what their predictions are and their conversations are, The number of people that comment around real estate in Australia who've probably never bought a property in their life and aren't property investors themselves is absolutely ridiculous. And they just use it because it just sells eyeballs. Australians love hearing about real estate, especially in the drama of it all. Yeah. Booting up the crystal ball. Yeah. If yours is working, let me know. Mine's a bit broken. Hey Vince, good to see you here, bro. And so, God, where was I? But what's interesting is that the media talks about this, the conversation in the media is starting to shift, right? And as we start to see that, it's always interesting when they're kind of jumped on that bandwagon around, okay, inflation is starting to moderate a little bit, interest rates are going to start dropping. Like, when are we going to be expecting to see that? I don't think we're going to see sharp drops in interest rates. I think that we're going to start to see some drops in interest rates by late next year, September, kind of October mark is where I'm thinking interest rates are going to begin dropping and we're going to see a bit of a moderate drop to begin with of interest rates. That's what I think is going to happen. Now, what's something else which is coming along this year which has— now what's that going to do? Obviously it makes money a lot cheaper, it takes the pressure off people's back pockets, but it also increases confidence and that's a big thing. One of the things which potentially has the ability to be able to suppress the property market in Australia is consumer confidence right now. It's just because people's back pockets are being squeezed a little bit in Australia and all parts of the world because of the cost of living. That's what's going on at the moment. Now, when those interest rates start dropping, I see that's going to start kicking the confidence into the marketplace again. And I think that we can start to see some strong growth rates moving forward into the future because all the fundamentals are stacking up behind that. Now, what's one of the other big things that's being touted to happen around July of this year, which could have an impact on the property market, lending, on the lending market, property market, people's back pockets? What's one big thing that's being touted to happen around July 2024, as long as the government pushes through with it? Does anyone know? All right, answer is, uh, the tax cuts, right? Stage 3 tax cuts are being touted now. With the Stage 3 tax cuts, basically what's going to be happening is that they're abolishing the 37% tax bracket completely. What that's going to do is that for the average person, it's going to put almost another $10,000 net income in their back pocket. Now, let me just see if I've got those figures correct. Where is it? Yeah. So that $45,000 to $200,000 bracket is going to be dropped to a 30% tax bracket. And so it's going to wind up putting some money back in people's back pocket. What that is going to do is going to increase people's cash flow, but it's also going to help to increase some serviceability along the way, as long as banks kind of pass that on as part of their serviceability criteria. So that's one of the big things that we are looking out for as well, which could potentially have a significant outlook on the property market as well. Again, just bring some more money in people's back pockets. So here's what I think is going to be happening in 2024. I think Perth and Brisbane in South Australia are going to continue to lead the way. That's what I think is going to happen. Okay. It's a great question. Yeah, cool. Okay. Let me come to that, Amanda. Yeah. So I think that Perth and Brisbane and South Australia are going to continue to lead the way with Sydney coming up behind it as well. So Sydney's starting to show a lot more kind of signs of recovery as well. Well, when I say signs of recovery, it has recovered, but signs of strong growth market moving through the marketplace. Well, I think that growth rates in Australia overall are going to be a little bit more subdued this year than what they were last year. I think that in some areas like Perth and like Brisbane, we may see that kind of 5% to 8% type of growth rate where some of the other areas it may be just a 2% to 3% growth rate. However, what I think is going to be happening is that where all is just as a groundswell building up underneath that, I think that's the pressure behind the market is just going to keep building. I think it's going to keep building. I think it's going to keep building because of the fact that there's huge undersupply that's already existing, strong population growth, which is already going to be continuing. The fact that we're not building any more real estate that's going on, we've got strong jobs growth. We've got consumer confidence starting to creep back in the marketplace with the talk of inflation kind of starting to steady and interest rates are going to be dropping at the end of the year. Wage growth has been up as well. Australia has quite strong holdings in terms of their savings and Australians will do everything they possibly can to hold onto their real estate. So they have that roof over their head because it is that essential commodity that everybody needs. At the same time, we're seeing a huge push up in rents. And so it's making it easier for investors to be able to hold some real estate. Not so much as easier for people to be able to have a roof over their heads and there's a problem associated with that. And the government needs to step in and start doing something really tangible to be able to fix that. So I think we're going to have a— when I say subdued, we're still going to see growth, but not as much as last year. But I think we're gearing up for something much, much bigger. What this says to me, some people sit there and go, oh, well, I'll just wait until that all passes. You know, to me, I sit there and go, well, while it's being subdued— Make sure I'm connected. My thing, but it's just not showing up properly. So when we are— and so this is the time when I'm getting myself positioned strategically in good real estate, setting up for that next move, right? Otherwise you're just going to be jumping in with the bandwagon with everybody else. Okay? And following the crowd when it comes to investing is a very, Very poor idea, right? Most people have no idea what to do with their money. They have no idea about investing. They have no idea about the markets, and they take their lead from the media and from newspapers and from banks and different things like that. Again, who have no idea what's going in the marketplace and often are not active investors themselves. Thanks, Adam. Appreciate you, man. Everyone gets good screenshots when Todd freezes. Yeah, good old Ray for always internet. And so that's where I think— so getting positioned in 2024, I think, is incredibly intelligent, incredibly intelligent, because I think when we go, we'll start to go really, really strong. And now's the time to get yourself positioned. Now, does anyone have anything other thoughts on that? Anything you think I've missed? Any other contrarian thoughts? I would love to know if you agree. Let me know that too. Like, what do you think the driver is going to be behind the marketplace? So let me know if you agree. Let me know if you disagree and why. And what are some other things that you are considering and looking at and thinking about yourself when it comes to this? Now, I've got a question that's came through from Amanda. If I can sell for a huge profit now, rent for a year and get back in the property market early to mid-year, will I get back in before the market prices start to escalate? Look, it's a good question and this is definitely a crystal ball question. Amanda, it really is. Now, what you really got to ask the question around is what is— it comes down to strategy first. What purpose is this property currently serving in your portfolio? Is it going to continue to serve a purpose into the future or has it kind of done its dash and you're better off just taking a profit out of it in any case? Now, you're trying to time the market. And it's kind of just, no offense, a bit of a mug's game when it comes to investors. Property investors, we're in here for the long term. And so it's more about time in the market as opposed to timing the market. And the ability to be able to get in and out, the cost of getting in and out of the marketplace can be very, very expensive as well. And so you've got to weigh up, well, the cost of getting in and out, is there potential that I'm going to miss the marketplace completely if it goes off and goes off sooner? Then you need to be aware of that because here's what could happen. As much as the government says, as much as the government said, you know what? Oh, we're not going to— like Reserve Bank said, oh, we're not going to put up interest rates for 2 years. Well, what did they do? They went and raised interest rates 11, 12 times in the space of about 13 months. So how did that fundamentally shift the marketplace? Well, guess what? The same thing if you do the opposite, right? If inflation begins to steady much sooner, then the reality is they may drop interest rates sooner. They may do it quickly depending on if they need to stimulate the economy a little bit more because there's potential that that might be needed with a lot of stuff that's going on in global economics at this point in time. And there's been a slowdown in China, the Evergrande property They've just gone into liquidation. And so what impact does that have? And there's a few different wildcards that we just need to be aware of that could impact the Australian economy that might then need us to drop interest rates fast to stimulate credit growth again. So we just got to be aware. I think that that's a bit of a risk, to be quite honest. It wouldn't be something I'd be looking at. I'd be looking at it from the standpoint of, do we What's the property serving in the portfolio? What strategy is the property serving the portfolio? And if not, then do we just cash it in anyway? And if it is still serving a purpose, then I don't think you're going to see some drops in the market anyway. So I don't think you're going to be dropping things. Okay. Let me just take that one down. Okay. Yeah. Okay. So yeah. Okay. So I'm trying to avoid paying huge interest on a mortgage and will buy again when interest rates drop. Can make $500K or $600K potentially. I can potentially invest in a different way. Yeah. So Amanda, that's all 100% true. Now I don't get caught up in paying interest rates on the mortgage, right? Because if you have the ability to be able to draw some of that equity out, You can earn a lot more than 6%, 7% interest in other asset classes. I have investors every day of the week who are drawing out equity, paying 6% to 7% for their money, but they're earning 10%, 15%, or 20%. So after they pay back, let's say 15%, I mean, that's easy. I can do that standing on my head, like my eyes closed. 15%, you take out the cost of the money, or let's even call it 7%, you're still 8% better off. So if it's a matter of a cash flow thing, hey, there's a better way to be able to do this because your cost of coming in and out of that property will cost you a huge sum of money. There's no doubt about it. But you could potentially invest in a different way. It all depends on what your portfolio needs, right? So I'm never about just buy and hold for the sake of it. I'm never about buy and sell for the sake of it. I'm all about what does your portfolio need. So you've got to come back to strategy first. If you don't come back to strategy as a starting point, you're literally just gambling and you're making reactive decisions, right? And those reactive decisions can wind up costing a lot of money. Okay, Adam, what a great question. Where is it? Okay. So if I was 20 years old with a good job, how would I get into the market? Asking my daughter because she's very shy and she is on today. Well, welcome. Welcome on, shy daughter. I'm 20 years old. So here's the question mark. When we start asking a question of a better quality question, is always want to be asking. And that question is, well, how can I get into the property market at this stage and what I'm looking at right now? And so we then got to start looking at what, and I might Shove you right into it, Adam. So let's just hang on. So there's a few options you can look at here. So when you're talking about a good job, so what that sounds like is that your serviceability is going to be just fine to be able to do your first property deal. So I'm not so much worried about that at this point in time. Serviceability is going to be good. If you let me know what the income is, I can talk even more accurately around that as well. But serviceability was going to be all good. So the question we've really got to be asking ourselves right now is where are we going to get the deposit from? And how much deposit do we actually need? Now, if we got into— excuse me. So if we go and have a look at what's available to us, that's one of the first things we want to go and do. Look, there is so much money on offer by the government And such right now. I mean, let's even jump on and have a quick look. Anyone wants to hang around and listen, I'm going to— where are you, Adam? You're Queensland-based, aren't you, mate? Is that right? Let me know. So when we go and have a look at what's available to people to be able to get their first home right now, the first place we want to go is to go to firsthome.gov.au. Let's go and see what incentives are available right there at this point in time, if it's going to load up for me, for first home buyers getting into the marketplace because it does change on a regular basis. Every state is a little bit different, but let's go and have a bit of an understanding of what that's going to be looking like. So during COVID they were giving away literally like $40,000 for people who have to get into their first property. But also what's going on at the moment, let me try and load up my phone as well Because it seems to be taking its sweet time on here. firsthome.gov.au. Let's have a look. And so when we talk about what's available to people right now, there's often stamp duty savings and there's a first home buyers grant that you can access to. And sometimes there's a new home construction grant, which is trying to simulate more new real estate being generated in Australia. So potentially 3 different style grants that might be available to you at any point in time. It's really not giving it to me. Maybe someone else can do a quick search for me. I want to know what are the first homeowners grants available in Queensland. Okay, here we go. Eligibility criteria. So there's a few things you want to be looking at. Okay. Yeah, $30,000 for a new build. Oh yeah. Happy days. So $30,000 is what the figure is for a new build, right? It's pretty solid. Now, when we're talking about $30,000 into for a new build and you're then going to have some stamp duty savings on top of that, let's get a trusty calculator out. And so we've got to understand, well, where are we looking at and what type of property are we looking at? Okay, so if we were— now there's also some lending opportunities in Australia as well as the first home buyers to Deposit Scheme, I think is what it's called. First Home Guarantee Scheme. And what that basically means is that you can get it down in from a 2 to 5% deposit with no LMI. Okay. So what that can mean is that you mainly need a 5% deposit to be able to get into this deal. Without the need for lender's mortgage insurance. This is what I mean. There's almost no excuse, right? Yeah. Queensland Housing Finance Loan. Have a household income of less than $141,000 per annum. You intend to live in the home, a minimum deposit of 2% of the purchase price, the difference between the maximum loan you're eligible for and the property purchase price. Yeah, so minimum 2%, but call it 5% to 10% is what you may need to be able to get into that, right? So when you start thinking about what you actually need to be able to get into the marketplace, as long as you can qualify for these different type of things, then you've got to start thinking about, okay, well, if I can get in, And go and get a new property at $650,000. And that might be a construction. You can get an off-the-plan property and register for that right now if you want to be able to do that. And you might only need a 5% deposit to be able to get into the deal, which is going to be like $32,500. Now add some costs in there, another kind of $10K on top of that just for shits and giggles. You might be talking about, well, you might only need like $40,000. $5,000 to be able to get in there, but you get a $30,000 grant from the government, right? So I sit there and go, what's the excuse, right? It's just laziness, not looking at it. Now, that's one way to do it, okay? So do the math, put a call into or go see a broker, put a call into a bank, go find out how you qualify for this home guarantee scheme, and you can look up some information around that. Look up firsthome.gov.au and go and look at how much you're entitled to, but it is $15,000 for existing property, $30,000 for a new property. So there's definitely opportunities there. Another option is, okay, well, this is where I'm going to throw you under the bus, Adam, is that parents can go as guarantors where they can put up their own property as some security on this. Now, it's not necessarily the best way to do it, but it is definitely a way to be able to do it, or you can do a gift, a loan sorry, a gift to your child to go into that deposit or loan out some equity. There's multiple different ways to do that. But the reality of the matter is that you— Adam comes back, pig's ass. Fantastic. So there are options that you can actually go in and do this. But hey, Given that the response was pig's ass, then you sit there and you go, okay, well, how can I go and do this off my own 2 feet? And the reality of the matter is there's so much help out there now. First Home Deposit Guarantee Scheme, you pick up the phone, call a broker, call a bank, go get clear on this and get understanding of your serviceability on it. And to get clear on your deposit grants that you need, you may have to come up with a little bit of genuine savings. savings as a part of that First Home Gov, which you may have. And if you're on a good wicket right now, then you're probably spending too much and pull your head in and start stacking some cash away so you can put together some genuine savings on this. Yeah, I know you would, mate. I know you would. I understand that. Yep. And getting people— this is what it was, to be honest. We're doing it hard, but you see us succeed. Yeah. So I understand that, mate. You're just being a pig's ass when you're saying that, which is a good, why the hell not? I think it's part of our job as fathers to embarrass our kids. And I do it with my daughter very, very well, I think. She may not agree, but I do. So it's definitely possible out there. There's no doubt about it. So start to zero in on the area where you want to be looking at. Go find something that's reasonably priced to be able to consider what you can be able to get and then get on the phone and start actually exploring. Because you just got to get all the facts and the figures and the numbers in place and you should be able to do this. I agree for comedy reasons. Okay. So I can't see who asked that question anymore. When it comes to building versus buying, what kind of percentage serviceability are you looking at as a general rule of thumb? thumb, i.e., $500 per week mortgage, $800 per week rent? Yeah. So that is— there are so many variables in there that I can't compute what that's going to be. So many variables, it's not funny. So every bank, how they factor in your serviceability, they have their own criteria and how they do that. And you can get serviceability differences of half a million dollars With the same person, the same day, same situation, but different banks will lend $500,000 different. And so it's going to change things drastically depending on what the lender is that you're going to be doing. In terms of is there a rule of thumb around, well, if there's a mortgage that's $500 a week and the rent is $800 a week, it's— I mean, I'm going to try and do some math here. So that's $26,000 a year. Now, if that is on 5%. That's going to be a $400,000 loan. And if that's at 90%, 400 times— oh goodness, now my math is failing me. Let's try that. It might be a 440, call it 450 style property. Yeah, you're probably not going to Yeah, it's a 9.2% gross yield. Yeah. So you're not going to be getting a 9.2% gross yield. You're not going to need that higher rent, right? So if you're doing a 90% loan-to-value ratio, most properties, you're probably only going to get a 4% to 4.5% rental yield. Okay. Now in capital city locations, that is. Now some properties in strategic location, you might get 5%. Some you're going to get a heck of a lot less, like in Melbourne, maybe it's a 3% type of gross yield. Is that what you're going to be targeting? Brisbane might be a 4.5% yield. Perth has some strong rentals. And so it might be a little bit 4.7%, 4.8% type of rental yield. So it's going to be a little bit higher as you're kind of going over the Western world over there. So there's a lot of variables in that question that you're asking. I actually can't answer that right now without knowing a whole lot more. But there's no rule of thumb because it changes so drastically between the different lenders. I hope that makes sense. Yeah. I mean, Perth's a good place to be getting involved in right now. I quite like the Perth marketplace at this juncture. So it's not a bad place to be looking for sure. So you're probably going to be getting some decent yields over there at the same time, which is going to help serviceability at this point as well. So it's not a bad market. There's not much stock over there is the challenge. I've done some stuff in Perth, haven't done too much in Perth, but I also know Perth people love buying in Perth. I used to travel over to Perth twice a month with clients and running events and things like that. And when I was traveling around the country running a lot of different trainings and events, and so I would I, I, I know Perth property investors and they just want to buy and get there right now, but you want to make that time to be diverse portfolio, that's for sure. Okay, that's what your house is relevant. Yeah, looking to do new builds. Yeah, yeah, yeah. It's good stuff to be looking at. Yeah, cool. Cool. Sounds good, Robert. Yeah, it's not a bad time to be over there, mate. Like, yeah, not a bad time to be over there. Totally agree. So team, I am running and by the way, what'd you take out of this for you? Pop on us. Let me know. What'd you take out of this for you? And as I mentioned you guys earlier, I have event coming up. It's happening. In like a week. I should actually find out the exact date. Hey, I'm just gonna pull it up in front of me. Okay, where is it? Do anyone know what date it is? Oh yeah, 7th of February, right? Yep, 7th of February it's gonna be. So that's when my— the next event is gonna be. It's all about profit with property. This is where I'm gonna be diving into the property market in a lot of detail. We're going to spend a few hours together. I'm gonna be talking you through— My daughter spends too much is my takeaway. As I said, tell her to pull her head in and get serious about it. I had one of my clients who was 20 years old bought his first property. And he bought a house and he built it. And he's renting 3 of the bedrooms out and is having the entire mortgage paid for him. And it's and made $100 grand in the space of 18 months and is about to jump into his next deal. There you go. So then I'm going to be diving into property investing strategy and how you're going to have a strategy and a market match in 2024. And we're talking about lending is one of the biggest differentiators between those who build wealth versus those that don't, are going to get stuck in the property investing market. It's not the same as what it was. 20-odd, 15 years ago where it was a wild west of lending. The marketplace is probably only set for most people to be able to get one property and maybe one investment property in their life right now. And that's it. If you just do the whole buy, hold, never sell type of scenario and just focus on property. Those of you who've known me for a while, you know full well that it's more about building out a diverse layered-based strategy, which is where everything is serving a A purpose within the portfolio to help you move forward and go from one deal to the next to the next? And how can we set up our strategy so we have multiple different layers of strategy, all snowballing in to be able to kind of go to one property deal, next property deal, next property deal as we build out our buy and hold base of our future financial freedom, right? But if you do not have a layered strategy, you're going to get stuck. I can guarantee it now. We're also gonna be talking about how do you access those off-market property deals in the marketplace to make more profit and more cash flow. Good as my investors made a killing over the last kind of 12 months with off-market property deals. And there's going to be this next kind of 1 or 2 years, I think there's going to be some other nice gains to be had as well. This is a good time to get yourself strategically positioned, good real estate, good location, and setting yourself up for the next growth cycles. I don't think it's going to be that far away, that's for sure. So I hope that has been useful, a little session for everybody. Make sure you register for this event coming up. It's happening next Wednesday. We're going to be jamming for a few hours on property. Those of you who nerd out on investing like me, you're going to come have a nerd with me. And for those of you who are here to create financial freedom, then this is the place that you need to be. This is what we're all about. So other than that, everyone go and enjoy the rest of your evening and hope you guys have an epic week ahead. And I can't wait to see you at the live event on Wednesday next week, Profit with Property. The link is in the comments, team. All right, we'll see you guys later. Thanks. Bye.