The Property Couch

609 | Regional vs City Property: Where Should You Buy Next? – Q&A Day

• Ben Kingsley, Opti & The Couch Crew

Share episode

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 1:02:29

Regional markets have boomed. Melbourne's established units are back in the spotlight. And after the government's latest tax changes, many investors are asking the same question: Has the property playbook changed? 

In this week's Q&A, Ben Kingsley is joined by Polly Chu and Ben Thompson to answer five listener questions from every stage of the property journey. 

In this episode, we answer: 

✔️ Is How to Retire on $3,000 a Week still relevant after the government's tax changes? 
✔️ Have regional property markets become too risky? 
✔️ Melbourne character unit or affordable house—which offers the better long-term opportunity? 
✔️ What's the smartest way to manage your money after buying your first home? 
✔️ And if you don't have children, should that change how you build—and eventually spend—your wealth? 

Tune in now! 


Free Stuff Mentioned 

LISTEN TO THE FIRST 20 EPISODES HERE >>

MOORR MONEY MANAGEMENT APP:
👉 Apple: https://apple.co/3ioICGW
👉 Google Play: https://bit.ly/3OT86bW
👉 Web platform:  https://www.moorr.com.au/     

FREE MASTERCLASS:
- How to Build a Property Portfolio and Retire on $2,000 a week >>

FREE BEST-SELLING BOOKS:
- The Armchair Guide to Property Investing
- Make Money Simple Again

FIND US HERE:
- Website
- Instagram
- Facebook
- Youtube

609 | Regional vs City Property: Where Should You Buy Next? – Q&A Day

SPEAKER_05

What I need to understand is what they're trying to get to in what timeline. Well, capital gains tax-free. And you could potentially rinse and repeat on that, and it's a different type of strategy.

SPEAKER_01

Giving yourself a research speech job as well.

SPEAKER_02

You're tuning in to the Property Couch, Australia's number one property, finance, and money podcast. Featuring the titans of the industry since 2015. We're trusted by tens of thousands of investors on their journey to financial peace. This show is powered by more.

SPEAKER_05

Thanks, Optie, and yes, I'm excited today. I've got a couple of my couch crew regulars with me. Polly Chu, Ben Thompson. Thanks, Ben. Great to have you guys along for today's episode because it's QA day. We're back here. It's been a while, so we needed to do it QA day. We got lots of great questions, and we're getting

Free Property Webinars

SPEAKER_05

those great questions from things that we've been doing recently, such as our webinar. We've done a series of webinars recently, from fact versus fiction to do I sell, hold, or optimize to our recent one, which is do I buy new versus established? So if you want to learn a little bit more about those resources and other resources, I'm going to give you a tip. Go to the website, thepropertycaps.com.au forward slash webinar, because you can register to get access to those resources as well as any future webinars

Explore Moorr's Latest Free Tools

SPEAKER_05

that we're doing. We're currently thinking about our next webinar, which will be coming up in a couple of weeks' time. So stay tuned for that. And if you've got any ideas, reach out to us as well in terms of what you'd like to know about. I I absolutely love that part of my job. It's when I'm the happy, when I'm in my happy place when I'm teaching other people. So check out that resource. Also, a quick other housekeeping thing. I tell you what, more is just getting jam-packed with new features. We're dropping new tools, new calculators, new features pretty much every fortnight at the moment. Thanks to AI coding and so forth. We've now probably got over a hundred different tools and features. We need to actually update the landing page because it says 60, but we're well over a hundred now. So we'll uh we'll get that done uh in uh the next couple of weeks to update that as well. But I want to talk about the break-even calculator. So, what is a break-even calculator? Well, what it does is it calculates based on cash flows, costs, ins and outs, what the actual capital growth performance needs to be to give you an indication of whether you're gonna break even. I mean, there's a lot of uncertainty out there at the moment, but I remember when I saw this calculator many, many years ago, over 20 years ago, it just gave me a lot of confidence to sort of say, well, oh, okay, with all of that going on, with my higher interest rates, my higher holding costs, it actually only needs to grow by two to three percent to actually break even. Well, I know historically properties grow, good properties can grow between five to seven percent per annum. So that is just there to check out. Really easy to use. So if you're listening to this on your phone right now, here's what I want you to do: I want you to go into the App Store and I want you to click on more M double O double R and just download it. Okay, create your account. Now you can skip, obviously, you don't have to do all of those things because the break-even calculator is on the web version of the platform. So it's not on the mobile yet, but it's on the web version. But at least create your account and then jump onto your desktop or your tablet or whatever and go and check out that calculator. Along with others there, we've got the negative gearing analysis calculator. We've also got the new borrowing power calculator that also uses your data and your numbers in there. So it's a lot more technical and advanced than the typical lender calculators you see out there. So a little bit of a plug for our sponsor of the show, more. Um, so check that out as well. Hey, um, the last bit of housekeeping or the intro to today's show actually leads in from this question that we got, which is from um one of our wonderful community members. And I'm gonna hand over to Opt as they read out the question, and then I'm gonna bring you guys in on the conversation because you've done a little bit of work on this. And so I want to talk to that. So, Opti, over to you. What's the question? What's our first question for QA Day?

Q1) Is How to Retire on $3,000 a Week Still Relevant? 

SPEAKER_02

Sure thing, Ben. Our first question for QA Day is from Nigel, who asks, I just bought how to retire on $3,000 a week. Is this still relevant after the changes that the government put in?

SPEAKER_05

Thanks, Opti. Well, good on you for buying $3,000 a week. Now, obviously, what has changed since the government introduced its tax changes? I'm not calling them reforms. I refuse to call them reforms. They are tax hikes. But you guys have been busy in the studio. What have you been doing? Yeah, it's a tax grab. Um, let's make let's be honest, for their for their in insatiable appetite to spend. Anyway, we'll move on. Don't get him fired up, Polly. All right. What have you guys been doing? What have you guys been doing behind the scenes when it comes to our book? A lot of work. Yeah.

SPEAKER_07

Um, but we're not we're not experts at recording, so that's why it took us a little longer. Um, but no, I think Polly and I, what did we spend? Polly, the best part of a week, week and a half. Yeah, funny.

SPEAKER_01

Two days of filming. That's right. Uh got to know each other even better, I would say. Very well, yeah. Lots of fun and offshore lots of bloopers out there.

SPEAKER_07

Locked in a room for the best part of two days doing uh video recordings. You get to know people pretty well. So uh and what were you recording? So, yeah, well, we've uh taken all the case studies from the book. Yes. Uh we've remodelled all those uh without the tax uh what are we calling them? Sorry, Ben, not reforms, we're calling them uh uh tax hikes. Tax hikes. Uh so we've taken we've uh taken we'll put in the tax hikes. Yes. Uh and uh we've uh then produced a video series explaining can I still retire on $3,000 a week? So we've updated all the scenarios to reflect the changes. Um and there's actually a bonus one in there as well. Tell me about the bonus one, Polly. Here you go.

SPEAKER_01

Live vesting.

SPEAKER_05

Live vesting.

SPEAKER_01

Yes, live vesting.

SPEAKER_05

Oh I got it. Yeah, very good. So live vesting, that that's all cool. So let me get this right. You have adjusted the models to accommodate for the tax deferral that's happening when it comes to negative gearing versus new property. So you've used the uh the case studies, the sixth of them. Yep. Um, and you've used exactly the same. Seven seven case? Seven case studies. Seven case studies with a bonus. No, eight with a bonus or two. There's eight of them. Yes. Wow. I mean, who would have thought I wrote the book that I would have remembered that there were that many? But obviously, yeah, that there's that's the aging brain. It's an early start. It's going on. We'll give you a break. There's seven in the book. Did you know there were seven in the book? Oh, there's seven in the book. All right. So there's eight now with the bonus one as well, which is great. And so what did we have to change as quickly in terms of the scenarios?

SPEAKER_07

Uh depends on which one we're referring to. So each one's slightly different, but um, there's been a balancing act between, you know, actually not that much. No, what I'd say at a high level, but um a bit of yield changes maybe here or there, some price point shifts, not a lot of lifestyle changes. So that lifestyle by design component that's been pretty consistent.

SPEAKER_05

And is there a spoiler alert? Did you get to three thousand dollars a week?

SPEAKER_01

We did, yeah. We did. That's the positive news. That's a relief.

SPEAKER_05

So even though the government's trying to force us to do other things, still possible, we can still get there. Yeah, really.

SPEAKER_01

Yeah, we were able to stick to um a lot of the original books age. A lot of people wanted to, in the case study, was 60, so we were able to sort of reach that age as well. Um in our update. Okay, okay, so positive news.

SPEAKER_05

So there'll be more information in the show description, so check that out. I think there's a wait list coming.

SPEAKER_07

There's even a wait list. Um so you can actually register for that. Uh, there's gonna be a website and um you can put your details down, and so then you'll get early access to all our videos. Oh, and how do you do that? Uh you just got to go onto the website and put your details in. And what's the URL?

SPEAKER_06

The propertycounts.com.au forward slash case studies, man. Well done. That's gold. I'm on top of the ground. I'm on top of the ground. I've had my coffee, I've been for my run. I'm ready to go.

SPEAKER_05

Beautiful. Okay, so let's wrap that up. There is uh our case study series that has been redone. Uh, for those people who have the book, that's wonderful. If you don't have the book, there will also be some information for you as well at that URL, which is theprobticouch.com.au forward slash case studies. So thanks guys for doing that. There's six hours, apparently six hours of new recordings. Is that all we got? That is added two and a half days.

SPEAKER_06

We only got six hours.

SPEAKER_05

Oh, we just we've got good editors in the building that is like no. Well done, guys. So obviously, I you know I'm very fortunate to work with fellow experts who were able to put all this information together. And of course, Bryce for helping uh write the book back in the days. So thank you, Nigel, for that question. Yes, the book is still relevant, even with the government changes. And thank you both for putting together um the new uh revised, updated case studies over six hours of work. I know that took basically two weeks of three days of recording. So we got some good editing. Most of the gold's on the on the floor in the editing. No, well done, team. That's very, very good. All right, let's move on now to our next question. And this is all about understanding current concerns about regional property markets from an anonymous listener. So over to you, Opti. Who have we got?

Q2) Have Regional Property Markets Peaked? 

SPEAKER_02

All right, our next question comes from an anonymous listener who asks, Hi team, I've been hearing your recent concerns about regional markets and would like to understand this further in the context of our situation. My partner and I are looking to buy in an area about an hour from the Brisbane CBD. It's primarily a farming town, but also has strong lifestyle appeal, tourism, character homes, and a strong owner-occupier feel. My partner's family has lived in the area for multiple generations. About 1.5 years ago, we bought a tiny house and placed it on my partner's parents' property while we saved for our first home. Our long-term strategy has been to buy a character house that we can add value to, live in initially for six to twelve months, and then eventually rent out long term. At the same time, we plan to rent out the tiny house as short stay accommodation, as it's in a very scenic location. We also have the future option to build a permanent home on the property where the tiny house is located, which would allow us to keep the investment property long term as part of our retirement strategy. However, property prices in the area have increased substantially, roughly 90 to 125% over the past five years, and around 20 to 35% in the past two years since we moved here. I assume a lot of this growth has been driven by work from home trends and spillover from Brisbane. We now have pre-approval, but I'm hesitant about whether we may be buying into a regional market too late. When you talk about concerns around regional markets, would that concern also apply to areas like this? Lifestyle towns within commuting distance of Brisbane that still have strong owner-occupier appeal.

SPEAKER_05

Thanks, Opti. Ben, what are your thoughts here, mate?

SPEAKER_07

What are your thoughts here? Well, like in it, there's so much of this that I love in terms of what they're talking about. Um, but then I have a lot of questions as well. But there's so many bits that I really like out of this approach. Um, so when I was reading through it, I read through it a couple of times, but so like part one where they're talking about um bought a tiny house and utilise parents' property. I just I love the outside the box thinking. And I just think this like intergenerational convers conversation with family helping family through their journeys is gonna be really powerful.

SPEAKER_05

Because what you're talking about there is the fast track in the savings, correct? Because it's it's basically rent-free. Correct. You know, I mean they own it too, but thinking out of the box that they're gonna turn it into a short stay accommodation.

SPEAKER_07

Yep, and I assume you know, they've probably made a bit of sacrifice there in terms of going living on a tiny house, which I I love that. Yep. Um, I love the idea of um I'm I'm thinking maybe this is a younger couple. That's my gut feel here. I I could be wrong on that read, but that's that's the impression I'm getting. So, you know, the idea of buying something that needs a bit of work and adding value over time that you're living in, I just think that's such a powerful approach that younger people can take into. You're talking about the character home, the character home that we're gonna add some value to live in for the next six to twelve months and then potentially rent it out.

SPEAKER_05

Yep, that's a clue.

SPEAKER_07

That's a clue. Yeah, um, and then but so this is then where my questions come in. So, because I I love some of like the strategies they've taken or that they're thinking about doing, but it's how does that flow into what they actually want? And so is this character home like they're talking about making that a long-term rental, but what does their long-term PPR look like? Because I think that's a really important question. Because in isolation, some of the strategies they've taken can be really good, but it's how those strategies come together to actually achieve whatever goal they're trying to get to. And that's the part that I feel like I'm missing. Yeah, I just don't know what they're actually trying to build to, Polly.

SPEAKER_01

I know we were talking about this um location as well. Like um, they talked about, you know, that I'm guessing a tiny home is one of those portable homes that you're sort of moving around. But they where they're living now is where is that compared to the regional area that they're looking to buy? Uh, you know, what sort of tying back into your conversation around the forever home long-term PPOR, like where's the location of that kind of thing?

SPEAKER_05

Yeah, so it's so it's a farming town. Yep. So that says to me that it's not necessarily a larger sort of because normally they'd you know you'd refer it probably to as a regional city or something like that rather than a farming town. We've got clues around tourism and lifestyle elements attached to that as well. Um, and then the character home reference in terms of that. Now, their parents might be farmers, so they might be moving back onto the farm at some point.

SPEAKER_07

The question is, are they is like is the purpose of the character home adding value and then renting it out? Is that a retirement discussion? Is that is that the pure strategy behind that decision? Or is it a strategy where they're trying to get utilise that to leverage to get into their family home in that location over the next five or ten or fifteen years? Or that's the part I feel like I'm missing. Like I feel like I've got the future option to build a permanent home.

SPEAKER_05

So so obviously the character home is stage one of their thinking.

SPEAKER_01

Yeah, is that the permanent home on the parents' property? Is that what that means?

SPEAKER_05

Yeah, no. So this is where I'm sort of thinking are they gonna inherit that land or correct? Yeah, you know, do they have because obviously we wouldn't recommend buying uh building a your asset on land you don't own, yeah, especially if there's other siblings or something like that in the conversation because that's gonna be difficult um down the track. So we would want to know basically what's happening in terms of the future ownership of the land, yeah, but you know, they talk about it being an ideally scenic location, so it must be a cracking spot. And so it's where they're forever home. You know, that dream home is potentially where they're going for. So I like that. I think that's really good. So, so let's come back to the to the initial point, Polly, around timing and priorities. Do you have a problem with this idea of um buying a printable home, doing it up, adding value um initially over the first six to twelve months, and then renting it out long term?

SPEAKER_01

Depends on their strategy. Um you know, long-term, well, I guess treating it as an investment property, yes or no, because then I got to think about what about the next property goal after that. Are they uh is it gonna be somewhere else that they need to now um save, have that cash flow to support a bigger, you know, dollar value, PPR value? So then from a cash flow perspective, all of this becomes quite important, modeling out the different um, I guess, steps. So say you did buy this property, um, live in it for 12 months, then you convert it to an investment. How can we then achieve that next property goal of buying the future PPR and where would that be and those kind of things? So it just depends.

SPEAKER_05

So there's there's a few things going on here for me, right? The first one is um this is not a passive strategy, right? It's it's it's it's looking at what I've got available to me and and potentially leveraging from those opportunities, i.e., you know, having the you know, the the tiny home on the parents, that's allowing us to smash our cash flows and and help with the surplus. So the idea of buying a rundown property um in uh you know a little tourism town and renovating that as your principal place of residence as well. So you got the principal place of residence future flexibility attached to that. So whether you choose to then rent it out or if you you know time the sale in a depressed market. Now, to to obviously this person, Anonymous's point, they're saying that um are we coming in too early? So this is a timing question. And I think that's a reasonable question, right? Now, but here is the deal. Um in these types of markets, if you're buying the rundown asset, then low-ball offers can be really, you know, like certainly over the next six to twelve months, just biding your time and putting low ball offers in means you're not gonna be paying the medium premium for the location anyway, right? And I love the idea that ultimately the the vast majority of the property is gonna be in the land value. So as long as you're not paying the premium on the land value, because this is what I want to talk about in regards to regional markets. You know, they're thinly traded and especially these smaller type of markets, right? So they'll go through these phases of being lifestyle leisure assets, which is what she's talking about. And so, you know, we've got a retiring population, we've got a baby booming cycle that's rolling through that. But they are more easily manipulated by speculative short-term activity. So we're seeing that potentially happen here. So let's come back to the basics land to asset ratio. You know, is it needs to make you need to make sure that you've got the majority of the value in the land. If you can buy the rundown character home and then do the renovations to it all up, you're winning because you're adding, you're turning the Apple into Apple Pie in terms of paying the premium. Because in most regional towns, the value of the property is really inflation-adjusted uh replacement value, not necessarily the land value that sits under that. Because capital growth in regional towns is more dependent on that replacement cost inflation. So that's construction costs rising, then genuine land scarcity and economic activity driving the value up over the long term. So if you understand that, then you'll understand what we're talking about here. So I I don't have a problem, but be patient. Like if there's no rush to do this, because if you're saving lots of money, effectively you're saving the money that you're going to throw at the renovations, you got the ability to um, you know, your capital value is going to be higher. And if someone offers you an amazing price point for it as their retirement home, well, that's capital gains tax-free. Yep. And you could potentially rinse and repeat on that, and it's a different type of strategy. Correct.

SPEAKER_07

And that's where understanding what this decision is leading into, in terms of like, is this a pure investment decision? Is this a pure personal decision? Is it a blend of both? But what I need to understand is what they're trying to get to in what timeline. Because that's where that becomes important. Because to your point, the volatility in regional markets can be substantial. And so then if this is a short-term discussion, you might want to be a a bit more cautious than if this is something you are thinking about for a longer period of time. Yeah, you've got time on your side.

SPEAKER_01

100%. I think Ben um Ben Kay's done a good point in terms of just highlighting the risk with the regional markets, etc. Um, but I for me it's thinking about what does this asset, like where does your cash flow lead you in three years' time, in five years' time, ten years' time. Um, you know, from reading with Ben T, you mentioned assuming it's a young couple. What about family, like kids and stuff like that? Like how does that impact your cash flows? And um, you know, thinking about if this uh sort of value add project you're looking to do, are you you just uh for five years? And then I mean you talked about long term, but your plans can change depending. I mean, you did mention your partner's family live there, maybe you want to settle down there. Lots of questions just around that, and I think just stepping out the different options, understanding your cash flows, and does that hinder your abilities to achieve some of those lifestyle goals? That's sort of where I'll be looking at over.

SPEAKER_05

Yeah, I think you're right, Polly. I think it is all about okay, so um good that we're thinking about making sure that we're not really stuffing the timing up. Yep, like you know, buying at the peak, buying at the top.

SPEAKER_04

Yeah.

SPEAKER_05

But there are some other advantages. These people live and work in this area by the sounds of things. And so they are and they're gonna get their hands dirty, you know, in terms of equity harvesting. So that's a different story, right? It's not like, all right, well, I'm gonna go on, yeah, I'm gonna be a borderless investor and go invest over here and let the asset do the heavy lifting. This is about them using their skill, time, energy, effort, elbow grip. To basically get ahead, and then you know, they could replicate this a couple of times, and then that that gives them a really sizable deposit to for their potential dream build. Yeah. You know, and so that they they would be the things that I would be thinking about exploring. Um, but coming back to the fundamentals of what we talked about in regional markets, the risks that we see in those regional markets, is that low land to asset ratio tells you that the market isn't pricing in locations that that highly, right? So so you've got to understand that the building is doing most of the heavy lifting or that aspirational buying in these sort of little towns, you know, these Dalesfords and all of these types of really cute towns that people potentially go and visit as part of that story. But hopefully that gives you just some clue. Um, thank you for your question. I think it's a it's an important one. But there is time on your side if you are a young couple. Uh, but yeah, get busy getting busy. And I'm sure you'll come up for oxygen in the uh in the next three to four or five years after being active on that. And that'll start to see see that pathway forward for for both of you. Uh, and good luck with that. Keep us, keep us in the loop in terms of what you decided to do. Uh, you know, come back to us and tell us our story. So, yeah, the high margin of safety is in buying that location and with that uh scarce land and economic agglomeration. But when we don't do that, it means we have to substitute that with things like equity harvesting and renovating and those types of things. So we still get the right land to asset ratio at the beginning because the property is deteriorated, and then we bring it up and then hopefully again rent it out for cash flow. Or um if someone offers us a great price for it, we might uh rinse and repeat on that idea and do it again. Um, if we enjoyed the process or if we had it renovating, we we steer clear of it. So thank you for that question, Anonymous. We appreciate that. Okay, question number three um is around Melbourne investment debate. Um, established unit or affordable housing. And this is from Matt. So unpack the question for us, please, Opti.

SPEAKER_02

All right, Ben, let's move on to question three. This one's from Matt. I'd love to hear your thoughts on whether established low-density inner

Q3) Melbourne Character Unit or Affordable House?

SPEAKER_02

Melbourne units, for example, St Kilda, Peran, South Yarra, now present a compelling investment opportunity compared to established houses in Melbourne's outer suburbs or Geelong. While these units have underperformed over the past decade and require careful due diligence due to risks such as special levies, I'm wondering whether they may be poised for stronger growth given their relatively high yields, reduced new supply, prices below replacement cost, and the strong performance of similar affordable asset classes in cities like Brisbane and Perth. Conversely, detached houses offer greater land value, value add potential, and traditionally stronger long-term capital growth. I'm also interested in whether a middle ground option, such as a villa unit or townhouse with some land component, could provide a better balance of cash flow and capital growth. For context, I currently own a positively geared Sunshine Coast Townhouse and a negatively geared Brisbane house, while my partner owns an investment property in NSW and a share of our current home. I have borrowing capacity of less than $650,000, along with funds in an offset account that could potentially be restructured for tax purposes. We're also considering purchasing a new PPOR in the next five to ten years. So I'm curious whether owning a neutral or positively geared unit would have less impact on future borrowing capacity than purchasing another house. I'd appreciate your high-level thoughts on how these options compare in today's market and whether you've seen renewed interest in this type of Melbourne unit from investors.

SPEAKER_05

Thanks for your question, Matt, and thank you, Opti, for reading that out for us. Polly, over to you. This is an interesting one, isn't it?

SPEAKER_01

Yes, um, indeed. I think more like I just I would one of the questions I would have is, you know, looking to to invest in another property, you obviously hold just counting three. You've got a positively geared sunshine asset, townhouse, you've got a negatively geared Breezy house, um, your partner, so you're combining, you know, a team. You've got another third property in New South Wales. I don't know if that's positively or negatively geared, and you've got a fourth one, which is your current home. Um fantastic position, great. Congratulations to get to where you are, amazing effort. Um, and now you're look- you know, you're obviously looking to continue with your accumulation phase here, thinking about the, I guess, a fifth property now, about the invest investment. Um I suppose also the other point to highlight is um looking at this PPR upgrade as well. Um, my question that I have is how does you buying the fifth property with an investment, how will that uh I guess impact your ability to buy that home upgrade?

SPEAKER_05

That is I think that's the most outstanding question here for me is on that principal place of residence. Like, how is how is this property going to impact and because what are we learning about live vesting and and you know basically having your principal place of residence as your future tax haven now? Yep. Like, is it worthwhile loading up again as opposed to not loading up on your principal place of residence?

SPEAKER_01

Yeah, because I think if you did buy this fifth property, when you do buy the owner ock, you're probably gonna have to sell something to buy it, right? Just more than your current home, I would think, from a cash flow perspective.

SPEAKER_05

Or certainly just loading up. So so there's there's there's several parts to this question, I but I think that's the big one that I would be stress testing. What about you, mate? 100%.

SPEAKER_07

Um that yeah, it it's everything, and it he kind of um uh ties it into the next question, uh part part two to that, which is would owning a neutral or positively geared unit have less impact on future borrowing capacity? So he's obviously already thinking about it in terms of what impact is this um purchase gonna have on the next purchase. So what I would say is this is one of the better questions I think we've had. And all the things outlined here are spot on, right? And it's such a line border.

SPEAKER_05

Yeah, so we'll go to the asset selection question um in a second. Okay, um, because I think that that's an important one. Because I think by design it's talking about regional house with further upside and you know, added value, um, middle ring suburb, um, where there's a bit of scarcity of land, and even, you know, uh established amenity and owner-occupier appeal. And then you've got the the true, you know, sort of agglomeration power, but you're sacrificing the land content, um, which is what confuses everyone about whether, you know, whether that plays in. So um, because I'll come back to the offset account story at the moment. But the first thing for us here, I think what you were talking about then is um why do you need another one? And you know, can you fast track the principal home? Yeah. And even though it says uh buying something neutral or positively geared, it's not necessarily going to add, like uh when you're doing your borrowing calculators, if you've still got debt exposure, and even though it's slightly positive or whatever, with the 3% assessment rate, it smashes your borrowing power. Yeah. So, so, so make no mistake that you've got to be careful about thinking that um it's neutral. So it's it no, because you've got this loaded borrowing rate. Yeah. So it actually is going to impact your borrowing capacity. So the first thing I'd be talking to is my investments I've been broker, and I'd be running the models in terms of if I bought this versus if I didn't buy this, what would be my borrowing power on that principal home, which is potentially going to get me a better land content in a better location as part of that story? Because that may, because I mean, we're going to get passive income off these other properties, but it sounds to me as if we haven't got the big rock in the jar yet.

SPEAKER_07

Well, that's and I think what you find with a lot of these situations is um, you know, it's kind of well, do I want the scarce unit in the inner ring? Yeah, or do I want the more land component in the outer ring? But then the PPR, I want the land component in the inner ring. Yep. Right. So then the the question immediately goes, well, so highly likely your PPOR decision is going to outperform either of these assets.

unknown

Right?

SPEAKER_07

Tax-free.

SPEAKER_04

Yeah, and tax-free.

SPEAKER_07

But because you want the land in the location, right? Most people want that's where they want the PPOR. So it's like, okay, well, it's highly likely the home you want is outperforming either of those assets.

SPEAKER_06

Yeah.

SPEAKER_07

So then the question goes, well, is it actually a more efficient overall outcome to get that sooner? Rather, like, is an investment property actually getting you to that home more efficiently? And the answer is likely not.

SPEAKER_01

Yeah, and I guess also just looking into the current environment as well, with a property market, like uh with the downturn we're seeing, this is perhaps the best time to be upgrading the PPOR. Um, just on your point, Ben T, like that PPR is likely going to be the most expensive asset property purchase you buy in your entire journey. So why don't you want to be looking to do that sooner rather than later to capitalise on um, I guess, the market conditions.

SPEAKER_07

And capitalise on a really strong position already, and clearly something they've worked hard for. Yeah. You don't get here without that.

SPEAKER_05

And Matt, there's another clue in what you've also got in here that would um want us to tease out that principal place of residence story, and that is your Sunshine Coast townhouse. It's positively geared. Hopefully, hopefully, you've got an offset account that's making that property positively geared. Because if you do, um, you can also move that money if you bought that property before 12th of May, and you move that money from the offset to your principal place of home. So you so you're gonna reduce your non-deductible debt straight away, and you're potentially gonna turn your Sunny Coast uh townhouse into a negatively geared asset again. Um, so that says that you'll get the negative gearing benefit on that. So I think this is a classic case of running some scenarios in terms of having a look at that particular story. But I didn't want to leave the the whole debate around an inner Melbourne um unit, established unit versus an affordable home because I want to talk about um the scarce character unit. So if we're talking about a period unit or scarce character unit, we are we are very clear that the Melbourne market particularly has significantly underperformed in that. So you've got a couple of things you need to understand around that. So the location generally has what we refer to as strong accessibility, because convenient close to the agglomeration centers. And so it has those big city benefits, it has high quality amenities, it usually has demographic sorting, it has high capital concentration, um, human capital concentration. So normally that means you're getting higher incomes and that sort of again, that uh demographic sorting that we're talking about. It has strong owner-occupier appeal. And off the back of all that, it brings in that institutional scarcity due to the planning constraints. So the people who are in there, like, not in my backyard, do we want any sort of mass density, horribly produced type stock? So that livability, that appeal really does um, you know, make that per square meter of land in that area uh incredibly valuable over time. So even though you might only owe one quarter of that or one-sixth of that if you're in a block of four or a block of six, that's the story here. So that underperformance in that um that type of um character apartment we call it, is the reason why it's it's a fine line in terms of what we're talking about here.

SPEAKER_07

Well, I think to your point there, that you know, one-fourth or one-sixth of the land component that it's built on, what you see in a lot of those older blocks is when they originally built them, incredibly inefficient with the use of the land. So you tend to see, you know, 50% of the land potentially unused, right? Or it might just be used for open car parks or you know, a lot of the time those buildings actually don't take up the same ratio of land that you see with a lot of the new builds as well. So that's the reason we see those perform maybe a little bit better than the other lots, because to your point, your land asset ratio in a way is actually not too bad in a lot of those older styles because they just don't use the same ratio of land that the new ones do. No, not even close.

SPEAKER_05

And now there's also innovation happening in this space where the strata air above can also be sold, and or you can potentially add a you know another dwelling or two on top, you know, if if everyone in the block likes that idea.

SPEAKER_07

Had someone that recently did that. Yeah, um, so bought a full block uh of like that sort of 60s, 70s villa uh U-shape. Yeah, uh so had I think it was seven on the block, yeah, and then all original, yep, went through and obviously renovated all those, but as part of the renovation, went to council and said, Can I put uh five apartments on top?

SPEAKER_04

Yep.

SPEAKER_07

And so went to a second level, so built five, re-renovated all the internal villa units, but then also built five on top of it as a developer and really cool block, yeah, right? Perfect. Um, so yeah, it didn't really change the structure or anything like that. But I think people, a developer's gonna become a bit more efficient with those things potentially over time. That's right.

SPEAKER_05

And I mean, and obviously it's it's horses for courses in terms of who has the capacity to do that. Yeah, but from a passive investor point of view, if you can get others in interested in that idea and you can sell that strata air above, then that obviously that's proceeds to you guys that then goes into paying down your your current thing. But I think that the most important thing is the replacement value for some of those period Art Deco and um you know, Edwardian and those types of Victorian classic, you know, I've I my mind moves to sort of some of the blocks in um East Melbourne and those types of everything, which is stunning, right? Yeah, yeah. You know, and converted that that that those things you just can't build for the price. Um you know they would cost millions of dollars per unit to build. Huge compared to what we don't make them anymore, so there's your scarcity. Yeah, that's exactly right. So there is a trade-off between the smaller land component and what we refer to as the future productive use, which is what we're talking about in terms of buying in a middle ring suburb versus buying down Geelong. And this is where it becomes why it's a it's it's it depends, is the final scenario here, because the reality is is every property is heterogeneous, right? And so until you tell me um which unit in which block I'm comparing against which middle class um property in which middle ring versus which regional town, it's impossible to make the call. So, so you've got to line those ducks up before we know what it is. Now that's not easy to do because they're not all going to be available for sale at the same time. So the reality is as people, you know, get into this mental conundrum of procrastination because they just don't know. But if you lock into a certain type of property in a certain type of location, because there is still a location block. Yeah, yeah, a certain block, there's a certain premium that's associated with that. Well, then I would have no problems with people buying that period unit, the established older style unit that has that character and charm over potentially a middle ring suburb uh house that might have done, you know, that's had its maximized uh extension or whatever it's done on it. Yeah. Because I still think that, you know, the downsizes, people are still gonna, you know, want to live in these premium locations and they'll pay a premium dollar for it as part of that. And in concert with the fact that it's underperformed, yeah, just says to me the timing could also be okay. So it's a depend, it's not a yes, it's not a no. It's just a it's just a matter of case by case.

SPEAKER_01

Yeah, just to add to that point though, um, perhaps with the established units, there's probably gonna be a strata involved. So as part of the research, just understanding, uh, reading the minutes to see has it got a sufficient fund? Does it do the upkeep? Because those older buildings probably there's gonna be somewhere in tear, some kind of roof replacement's gonna happen. So making sure that you know the strata is efficient, and then of course, um just understanding what that costs look like from a cash flow perspective, because versus I guess a house, um, you know, you don't uh you don't have those strata.

SPEAKER_05

Excellent advice, Polly. Excellent advice. That's why we go to you for all of our planning and advice in that space. Okay, thanks, Matt, for that question. Let's move now to our next question. Um, and this is a speakpipe question. If you want to ask us questions, go on to the propertycouch.com.au and go to the speakpipe and just record your question and we'll play it on a future episode. This question is question number four, and it's how to manage your money after buying your first home. Let's go to the question now.

SPEAKER_00

Hi guys at the Property Couch. My name's Mia. Um, I'm actually a bit of a new listener. I've only been listening

Q4) How Should You Manage Money After Buying Your First Home? 

SPEAKER_00

for a couple weeks or so now. But so I don't know whether you've already covered this in some earlier episodes. I've been trying to filter through and and find some. Um but I was just wondering if there's anything you've either already done or you could expand on in regards to maybe budgeting or uh just managing finances after buying a house. So I just turned 21. My partner and I have just bought a house, um, and we're just sort of looking into what our best options are going forward as far as managing a mortgage, uh, setting ourselves up for a good future now that we've first secured a house. Um, and just you know how we could maybe get into investing, not necessarily straight away, being young on affrontus wages and and just getting our first mortgage, but maybe setting ourselves up better for later on. Uh, any advice or some direction would be much appreciated. Thanks. See ya.

SPEAKER_05

Thanks, Mia. Great question. Love the fact that you're firstly getting into property at such a young age. So, congratulations to you and your partner. That is awesome. Ben, what have you got for me? Congrats.

SPEAKER_06

Uh exciting, happy.

SPEAKER_07

That's um it's nice to like you're going through each question and you kind of get people at different stages of their journey, uh, which is really nice. 21 great stuff. No, it's great. Um, I haven't, I do, uh, yeah, first and foremost, right? Um just foundation in place for your money management. So that that that's something I say to a lot of clients. I mean, here's just a small thing, like a monthly budget sort of date night. Um, I don't mind. I've got sort of most of my clients set up on something like that just once a month, sit down, have lunch or dinner together, and just do a quick check. But you've obviously got something to check against. Uh, so am I allowed to do another plug for more?

SPEAKER_06

Gosh, get it how did you how did you say it before, Ben? What was your advertising? M double o double r. Good drop.

SPEAKER_07

There you go. I was getting there. Uh, so yeah, little plug for more because you've got to have something that you're tracking against, right? So, and something that you can actually check in on. So, um, getting yourself a bit of a system, a bit of structure behind what you're actually managing. Um, and then yeah, as I say, a little monthly date night or lunch to check in on that. I think that's sage advice, Polly.

SPEAKER_01

Yeah, um, completely agree. Uh, congrats, Smears. An amazing uh achievement is a big life milestone, right? Life milestone, I would call it. Um, and I would agree in terms of just getting understanding um expenses um that's coming in. I would think as a first home owner, you're gonna have some expenses you've never had before, i.e. council rates, um, building insurance. You probably need to provision for some kind of expense in in case you know, there's some a plumber you need to pay for those kind of things as a backup. So I would say, given, you know, you would have just bought this property, I would imagine you would have depleted quite a bit of your savings as well. So making sure we start to replenish that cash balance um would be of high priority from my perspective. And the best tool to do that is of course MAAR.

SPEAKER_07

Uh am I to um jump in and say, and more the reason we keep saying more, right, is um once you're in there, you'll understand what we're referencing.

SPEAKER_04

Yeah.

SPEAKER_07

Um, but I think the biggest part of, and when I first started using it, that there's two components to it that totally changed the way I thought about money. Yeah. Um and the first one was the living and lifestyle seven-day float jar. And the second one was provisions. And so that's exactly what Polly's talking about there, where provision spending is um, think about expenses that they're not regular, they're coming up maybe once a quarter, once every six months, once a year.

SPEAKER_06

Yep.

SPEAKER_07

But they're expenses that you've got to account for over the course of your journey. And so provision tracking when it's hard to, I guess, explain it without showcasing what it can look like. But if you if you get into more, you'll see you're able to, I guess, allocate what your yearly target might be for an expense and then track it on a monthly basis that as you spend it, right? So, yeah, whether that be a plumbing bill or electrical bill or something like that that comes up, you know, you allocate at the start of the year $5,000 to house maintenance. And then as you're spending that, you can simply update your provisions as you go.

SPEAKER_04

Yep.

SPEAKER_07

Um, the second part is the living and lifestyle job. That was my biggest change. Um I I've had my moments uh across my journey with my money manager. I I uh I I used Be a bit of a well, you know, just uh you only live once, but uh things change. So um a seven day float is essentially you know a system where you you basically give yourself a budget for the week, right? But um, you know, you and pro tip uh set it up on the day uh that you're most likely to spend the most money. So for example, my mine's are set up on a Thursday to come in because I'm more likely to spend on Friday, Saturday, Sunday than I am on Monday, Tuesday, Wednesday. So the money's gone by Sunday, then the money is gone. You eat what's in the cupboard. Um so yeah, no, that's um that's something I that really revolutionized the way I sort of looked at money. And um, it's just so much easier to track something frequently, like a weekly float is so much easier to track than a monthly.

SPEAKER_01

Uh Ben, everything you said I completely align with. Um, I do what you do. My float comes in Thursday as well for that reason. Um, but it's very, it's very effective. It's easy. Um, as in I don't have to think about it. It just it's on my debit card. I carry two cards. One is the credit, one is the debit, and I don't feel bad when I spend the float. Um, and I think that becomes really important because that's balancing that lifestyle piece. We keep talking about your property journey, but you've set it aside. But giving yourself permission to enjoy life as well is that it's a lot of fun.

SPEAKER_07

That's the one. And that I think a lot of clients have that. It's actually sometimes giving yourself the permission to spend too. Like a lot of people can get too focused on budgeting and restricting their spending when stuff like this happens. It's like, oh, we bought a house so we can't spend any money. It's like, no, no, no, you are allowed to. You just gotta understand how much you are. You can, and then give yourself the permission. That's a great point, Paul.

SPEAKER_01

Yeah, just to jump on that, I'm gonna share some tips I have with the float. Um, my most expensive month throughout the year is December. So I go out heaps, people are back, I've got friends visiting, I'm out all the time. And the float helps me keep on track. So as long as I have a balance, even if it's a dollar at the end of that particular week in December, I know I'm good. And how do I plan for this? Is maybe you know, November, I'll go a bit lighter, you know. Like I know I'm catching up with all these people in December. It's all right, I'll come over to my place, I'll cool for all of us, you know. Um, and then December, as long as then I start to build up my like debit card, my seven-day float. And I don't I just know that that just helps me get on top of um, you know, my most expensive.

SPEAKER_07

That's a great hack.

SPEAKER_04

Yeah.

SPEAKER_07

And that's the good one, isn't it? Because your seven-day float, it comes through every week, irregardless, right? So if it's $100 a week and you've still got $50 left at the end of the week, well, the next week you get $150. Yeah.

SPEAKER_05

And so that's what that carries over. Yeah, absolutely. Okay, so thank you both of you, because obviously in our second book, which was Make Money Simple Again, um, we talk about money smarts, and that's available for download. We'll put a link in the show notes as well. I'll summarize um also my points here. The banking setup is really important, right? Because that sets you up for success, because effectively you want to try and create money on autopilot. Um, what Ben and Polly were talking about in regard to uh the Money Smart system is a rules-based system. And what we would be telling you is an annual 12-month target is a good starting point. All right. So once you've set each of your categories and you put the targets in there of what you're going to spend and your provisional jars, then you've got a rough idea in terms of what your annual surplus is. Now, that annual surplus could be used for emergencies or it could be the savings buffer that Polly was talking about there as well. And inside each card in the more platform, you'll have an option of doing essential and discretionary. We do all the calculations for you, we set all of that up for you. Um, and then you can obviously, you know, track that money as it comes in through the transactions through my financials on the platform. Remember, it's free to use as part of that particular story. But they're the they're the main things to also understand. If you don't have a target to go after, your behavior won't change.

SPEAKER_07

Am I allowed to put my QPI QPIA hat back on? Is that okay?

SPEAKER_04

Yeah.

SPEAKER_07

Just because I I want to reference this back to Matt's question as well. Yes. And you remember how Matt had the and we spoke about having money in offset and potentially a primary account? Yes. And then, but my question is, and so for part one, Mia, get your money management right.

SPEAKER_06

Yeah.

SPEAKER_07

But part two, can I have an understanding of whether this is a long-term PPR or a long-term investment? Yep. Because some people buy that initial PPR with the intention of, hey, in five years, I'm actually going to rent this out.

SPEAKER_06

Yeah.

SPEAKER_07

Now, that's where if we can get on top of the money management and we can get across everything we need to, maybe turning this into an interest-only loan with an offset account. Okay. Once we're on top of things, right? We've got to be all over your money management first and foremost. But then, because what we're going to have is in five years, if we want to turn this into an investment property, we're going to have a whole bunch of cash sitting available in an offset account. Yes. We're going to be able to utilize that cash for our new family home. And then potentially we've all got, we've still got all this debt that then we're going to have to be able to claim as I love it.

SPEAKER_05

And we don't know whether Mia bought this before the 12th of May. It's 7th. So that would be the other little thing that we would also. So there's there's definitely some options there for you, Mia, both in terms of future pacing that Ben just mentioned to you, as well as just getting your money on autopilot and using a platform that helps you do that. And of course, we're biased and we think the more platform is perfect for that. And it's free to use. Okay, thank you, Mia. Question number five. What is the best thing to do with your investment properties if you don't have anyone to inherit it? So over to you, Opti, as we unpack this story.

SPEAKER_02

Okay, Ben, let's bring it home. Our final question today comes from our YouTube channel and is from Samo 2000 Iffication.

Q5) No Kids? What's the End Game for Your Property Portfolio?

SPEAKER_02

Hey guys, this was a great episode. As client and longtime listener, I enjoy how you keep it real and responsible when it comes to investing. In this episode, the part where you speak about couples with no kids interested me, as we may not have any kids in the future. My property plan details has a large amount of equity right up until the end. Death. You guys could flesh out what opportunities, changes in approach, and strategies could be implemented in the case of DINKS and no children, etc. Having such a large asset base at the end of life and no one to inherit it seems somewhat pointless unless you value large donations to charity or other non-immediate family members. I am thinking it could mean, for example, selling an investment property to help fund an upgraded PPOR, or to increase lifestyle, rather than continuing to hold and accumulating more for the next generation that is not there. I'd love to hear more from you guys about this topic. Keep up the great work.

SPEAKER_05

Thanks, Opti, and thanks for your question, YouTuber Samo2000 Invocation. Thank you very much for your question. So we might call you Sam O for short, if that's all right. Polly, what do we think of Sam O's question?

SPEAKER_01

I think it's a great question. Um I'm loving today's pod, um, how we've been able to showcase um different people at the different journeys. You know, we had Mia looking to buy her first, oh sorry, she's just bought her first property, her home. Uh then we also had, I think, question, I can't remember, Nigel is it? Um, you know, looking, or Matt looking for the um, you know, further upgrading his PPR from the different properties in the scenario. And now we've got Samo here um looking to, I guess he's done with the accumulation phase, thinking about what to do with with the investment assets um before he retires and all that kind of stuff. So I think it's just really start enjoying life a little bit more, you know. Like um, what does that look like for you? Is it upgrading your PPOR? Do you want to do that sooner? Um, doing it sooner means you get to enjoy it more, you get to live in an extra year, you know, um when you're there. So I suppose is really just understanding, um, increasing what does that lifestyle by design look like for you? Um, but also depending on the plan, your retirement date, like I don't know what that looks like for you, but I have to say thinking beyond, you know, if a 60, 65, because I think we're all gonna live a bit longer.

SPEAKER_05

Um I've got some data on that, so I'll be coming back to that in a minute.

SPEAKER_07

But Ben, what's your I I think um the last sentence there, right? He sort of sums it up for me. He said, um, well, I think the part to Polly's point, doing whatever lifestyle means to you, right? But that's that's sort of what he's alluded to here. He said, you know, do I sell and upgrade my PPR or increase lifestyle? Well, whatever's important to you, right? Just I think, yeah, at a certain point of your journey, you do get to a stage where you've done the heavy lifting, you've done the accumulation rule at different points, as Polly was mentioning. And once you've done the hard work and you're there, well, yeah, enjoy it in um whatever life means to you, what's valuable to you and your partner, and um enjoy yourselves.

SPEAKER_05

It's an interesting one because if you don't like the government, you don't really want to give the money to the government, do you? Like, like ultimately, if they can't spend it properly, you probably want to avoid that. Um, so you know, there might be some tax things that you know, like it is it is fascinating when you you get to land a plane and sit down with people. I mean, we talk about in our seven grades of financial well-being, um, grade number six is financial peace. So it sounds like Samo's got getting close to financial peace, right? And then grade seven, which is the optional grade, it's the peak of the mountain, which is contribution. So, what do you do with that money? So you got choices there, right? Now, and some places, in some cases, people might want to donate some of that money to um philanthropic activities, which is wonderful, right? And potentially participate in that, and and that can give them a lot of joy and fulfillment in terms of the contribution that they're making as part of that. But I think that that is a bit of the story here in terms of um what floats your boat, you know, what are the things that that you want to get out and see and do. Um now, if you're a homely person, maybe it is I want to wake up to a sunset or a or a sunrise. So upgrading that principal place of residence and being in that beautiful location and getting great joy out of that, um, if you, you know, like that. Or if you're an active person and a traveling person, then yeah, let's go and you know, walk in the jungle with uh gorillas and let's go and sleep in you know, Mickey glues um and and get that, you know, get that experience, yeah, you know, that premium experience that potentially your money can afford you to have, you know.

SPEAKER_01

Yeah, or even things like going part-time, um, if you want to find buy your time back. Um, you know, financial freedom is getting your time back and not trading time for money, right? So, what does that mean for you? Does it mean working three days a week in something I love to do? Um, and then the other two days maybe do some voluntary work or support the family.

SPEAKER_05

It's exploring what makes you happy, right? But I will I'll bring in the fun facts now, right? So in longevity science, um, there has been some obviously um we're hearing from some of these leading experts in the area of life science and biology and so forth, that based on the advancements in AI, that um we've heard several people in this area, even Nobel Prize winners in science, Alpha Fold and so forth, have said that all disease will be solved within 10 years. Right? That's the prediction. And so there was also um a modeling paper that was published in um Nature magazine, and it's the uh Somatic Mutations impulse um and uh uh an entropic upper bound of human lifespan. Now I stumbled through that, but I'll try again. Uh somatic mutations impulse and atrop m tropic upper bound of human lifespan. And that means that if we can cure every known cause of aging, and there's 12 of them, hypothetically the modelling suggests that humans can live for 1,759 years. Now, yep, drop the mic on that one, everyone. Now, obviously, in the same article, it also talked about if one was left with one of those causes, which was the somatic mutations, the random DNA mutations that occurs in cells in our body, that will drop down to 156 years. But we are seeing on on uh podcasts like Moonshots uh and those types of things, where I was able to learn about this, um, is that there's no doubt that there are uh scientists out there who believe babies that are being born today will have potentially um the opportunity to live forever with reverse aging and so forth. Now that's pretty cool.

SPEAKER_07

Now let's bring that back to the question at hand. So are we just gonna tell Samo he needs to get back to accumulation? He hasn't got enough. Well, this is the beauty.

SPEAKER_05

This is the beauty of compounding. This is the beauty of compounding. So I I bring it back to the question. Make sure you've still got enough salmo, right? Right? Make sure you you keep it enough, but not too much that you, you know, like ultimately, we don't know. And and and people and you know, I'm in the sort of second half of my life. Um, from that point of view, there is a question here about, you know, to in terms of longevity. And some people do want to live a long time. Some people want to go to space, some people want their meat bodies converted into AI, you know, and in terms of that. This is this is fun stuff. This is what this is what I enjoy on the side in terms of understanding what's going to happen in in future, you know, worlds where you've got these cyborgs where you're part human, part machine. Uh, and we are definitely in the era of the um, you know, the singularity. If you don't understand what that means, Google it. But I'll give you a quick little idea of what the singularity means. It means that machines are going to be smarter than humans. And Sam Altman has recently come out. Elon Musk has recently come out, and obviously the guys on Moonshots have been saying this for a long time that we are in the singularity right now, we're living through it. And so that is what is going to change. So we're going to have some rapid change. Now, bring that back to money, bring that back to how long your money needs to last you for, and think about how you run your investments. So it does mean that during your um your retirement phase, there's an active phase of retirement, and then there's your elderly or fragile stage of retirement. And during that stage, usually your money's going towards maybe medicines and so forth.

SPEAKER_04

Yeah.

SPEAKER_05

But in reality, you are spending less because you're not as active. But just assume if you're in your 20s and 30s right now, just assume that your active phase with longevity and effectively anti-aging results that are going to come, that you might be in a retirement phase for 50 years, not 30 years. And so you need to be planning for that as part of how you're thinking about the wealth that you're building today. Now we will, hopefully, all going well being in a period of abundance. Um, everything will be very, very cheap. Everything will be available to us, and we'll have the best medical, science, the whole type of thing. So that sort of just is a little segue for SAMO and hopefully something to think about as we finish today's show. Now, if you love this sort of stuff, send some questions in relating to the future time that you want to plan to spend on the planet and what you're going to do with that time as your humanoid robots actually do your work for you and you have all this free time. But I still think if you want to have a certain level of lifestyle, not just a baseline level, you're going to have to have some wealth associated with that. So there's still wealth accumulation that needs to occur as part of that story. But we are moving in to an interesting next two or so decades in terms of what that looks like. And I think that will also play out in terms of housing construction and other things. So I'll make sure that over the course of the next year or so we'll bring on some episodes that is futuristic around what's going to happen in property and how we build them and how much cheaper they're going to cost to actually build and what materials we're going to use to make them cheaper as well. But until then, thank you, team. Love to have you on. Thank you for your stage of voluntary as usual. Till next week, everyone. Remember, knowledge isn't pairing, but only if you have it.

SPEAKER_02

Like hey folks, Opti here, the Smart Money Sidekick Inside More. Just one quick thing before we sign off. If you're new to the Property Couch community, welcome. One quick tip to help you get the most value from the show. Our first 20 episodes cover the foundations we build on every week. And yes, listening on one and a half speed is totally acceptable. If you're short on time, download our free binge guide. It distills those episodes into one easy read with heaps of visual diagrams, alongside free tools inside more, your all-in-one financial home, to help you organize your money and plan your next best move. Check out all the links in our show description. And just a quick reminder before you go anything we cover on this podcast is general in nature. It's not considered to be financial advice, and we certainly recommend that you seek out professional advice before making any financial decisions. Once again, everything mentioned is linked in the show description. Ready when you are. Catch you next week.

Head Shot

Ben Kingsley

Host
Head Shot

Bryce Holdaway

Host