The Finance Show With Joe

S2E10: Permanent Shift or a Cold Snap in the Australian Property Market?

• It's Simple Finance • Season 2 • Episode 10

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Is the Australian property market on the brink of a major shift, or are we just seeing temporary hiccups? Join us on this episode of the Finance Show with Joe as we uncover the latest trends in housing values across major capital cities. CoreLogic’s recent data reveals a cooling off in housing values, presenting both opportunities and challenges. First-time buyers might find some relief in more affordable prices, while property investors could face a bumpy road ahead. We’ll break down how rising living costs and high interest rates are playing a pivotal role in shaping these trends.

We then zoom in on the dramatic shifts within Sydney and Melbourne's property markets. For example, a Blacktown couple who enjoyed a staggering 20% gain in just six months. However, this growth is not uniform citywide. Wealthier areas like Cronulla and Miranda are showing signs of stabilization or even potential dips. Plus, with broader economic issues like stagnant wages and construction company bankruptcies, we question the sustainability of these markets. We also touch on the seasonal nature of property trends and the possibility of a market boom later in the year.

Lastly, we tackle the critical question of whether current market trends are genuine shifts or just temporary fluctuations. With the end of the financial year in sight, the focus is shifting towards refinancing over new property purchases. We emphasize the strategic importance of accessing equity now to facilitate future investments. Balancing immediate financial prudence with long-term investment goals becomes paramount in these uncertain times. Tune in for a comprehensive analysis that offers invaluable insights for first-time buyers, seasoned investors, and everyone in between.

Follow us for more property news and mortgage advice!

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Joe:

Is Australia's property market finally cooling? A recent report by CoreLogic has shown that housing values are actually starting to drop and steady off Across all the major capital cities. Who are the biggest winners and the biggest losers? Find out in today's episode.

Michael:

Welcome to the Finance Show with Joe. He's Joe, I'm Jes chmo, and today we're going to talk about housing affordability. What else d we talk about? It's cooling, isn't it? It's coming with winter, it's starting to look good.

Joe:

It depends on who you are. It depends if you are an investor or if you're looking to just buy a property. If you're a first home buyer If you're looking to just tap into the market. But a recent report by CoreLogic came out and is highlighting how property values are actually starting to drop.

Michael:

Yes, which I mean as a first-time buyer. I imagine they would be excited, yeah, but as a property investor, Not so much.

Joe:

I'd be how do the kids say it? Shitting bricks. There's actually some worrying data in here. We don't know if it's going to be a trend. We don't know if this is going to be a continued process. We don't know if it's just because of winter, but thankfully, today we're going to be able to break it down. So CoreLogic came out with this report. Sales aren't as high as what they were and demand isn't as high as it was in previous months.

Michael:

I reckon I mean a big part of it's got to be like cost of living and interest rates and stuff like that. Everyone's just stretched a bit further.

Joe:

We've seen Woolworths and Coles just absolutely decimate the market by having their duopoly and continue to increase prices everywhere For no reason. For absolutely no reason outside of profits and they posted record profits last year, didn't they?

Michael:

Yeah absolutely they did. And what was their reasoning initially for raising prices? It was like war in Ukraine and it's like what does that have to do with Australia? We grow our own food.

Joe:

It was absolutely ridiculous. And then they tried to come up with wages are up. That was another one, but then reports came out and said that they were underpaying their employees at the same time.

Michael:

I used to work for Woolies. Fun fact, even I got reparations from them. It wasn't much, but it was a couple hundred bucks. That was after like eight years of working for them, though.

Joe:

This is major supermarkets, major duopoly that are taking advantage of the everyday person and that cost of living the interest rates as well, not coming down, staying stubbornly high, has finally hit the Australian back pockets.

Michael:

Yeah, I think everyone's savings are kind of dwindling away and now they're really trying to tighten the purse strings.

Joe:

I've been discussing this on the podcast for the last three months and I've been telling people hey, cost of living is up. Hey, interest rates, they're not going to come down. I've said it multiple times Interest rates aren't going to come down until next year.

Michael:

No, because some people were optimistically thinking it was coming down the latter half of this year, which is why so many people bought, which is why so many people were interested in buying.

Joe:

But now we're actually finally seeing the effects of the interest rates, because we spent the last 24 months with interest rates going up and up, and up and up. They're at 0.1%, which is ridiculous. That was mid 2022. And then now it is mid 2024. And this is the overnight cash rate. By the way, this isn't what the bank is charging you, but 4.1%, which means the bank is now charging you 6.1 to 6.5%. You're going from paying one and a half percent interest rate on your home loan to 6.5% on a million-dollar mortgage. That is, thousands of dollars. I am well aware.

Michael:

Michael is a… Recent first-time buyer.

Joe:

And he is feeling it. Oh boy, I'm sorry mate, I didn't mean to do that to you. No, no, no.

Michael:

Long-term, this is good Short-term paying, long-term game. Again, this is what I keep telling myself.

Joe:

That's the name of property. But there were some really surprising results, and I do want to add in this is month-on-month results, this isn't year-on-year. Perth grew 1.8%.

Michael:

Yeah, I think Perth is going to continue to just sort of grow consistently.

Joe:

We've talked about it.

Michael:

To. I think Perth is going to continue to just sort of grow consistently. We've talked about it To death at this point.

Joe:

Yeah, it's just, they're investing a lot in Perth. They want Perth to grow. The Australian government doesn't want Perth to be dependent just on mining. They want it to be its own self-sufficient city. It's the same time zone as China. They've also just got space. Frankly, yeah, that's true.

Michael:

And people want to live on the west coast. They like the fact that sunrises on the beach is underrated. Sunsets, sunsets. You know you're right.

Joe:

No, you're right, there's no uh, apparently there's a lot less uh.

Michael:

Parking fines in perth I imagine there's just fewer cars. I don't think you have to fight for parking as much in perth people want to live there.

Joe:

They like the relaxed lifestyle, and you're also entering the market at a much lower just feels reasonable. Well, more reasonable more relative we're all relative like you know, I follow hundreds of buyers agents and I follow hundreds of uh property developers over in perth and you're able to buy like four bedroom houses with a swimming pool for like $750,000.

Michael:

Compare that, believe that we're supposed to be fucking, but compare that to Sydney. Yeah that's an apartment.

Joe:

That's maybe an apartment.

Michael:

Maybe yeah, Depends.

Joe:

These are places that are 15 minutes away from the CBD, so Perth is going to continue to grow, especially because it's on the lower end of the market. When something is on the lower end of the market, that means a lot more people can buy it, so there's just more room to grow. Think about it like hot chips. Yeah, hot chips cost two bucks, right, when they're on special, when you go to KFC drive-thru, sometimes you can get a large chips for $2, right, right, that means a lot more people can buy hot chips for $2. Everybody's got a $2 coin on them. But if hot chips are $10, you're not going to get 100 customers. You might get three customers.

Michael:

In a much larger scale. It's like the luxury field, like luxury sector. You've only got to sell 10 watches that cost $10,000 as opposed to 100 watches that cost $1,000.

Joe:

But that's what the Perth market is. You've got a lot more room to grow.

Michael:

There's a lot more house and land packages and a lot more people are going to be on the lower end of the salary spectrum. Yeah Well, that's just how I use it. I don't know if it's a spectrum Salary bracket, tax bracket.

Joe:

Yeah, that one, the lower end of the tax bracket so they can afford it. So we are actually seeing a migration to WA.

Michael:

Which is a first. I feel, yeah, I never really hear it before now. I never really heard anyone going yeah, WA, I'm super keen to go.

Joe:

Well, if a bloody house in Bass Hill costs $1.8 million and you could go and get the exact same house in Perth for $700,000, people that don't have the massive family ties that we do you and I being from WOG families WOG and Lebanese families, it's true, people that don't have, you know, so many connections they're going to take the opportunity.

Michael:

I mean it just is opportunity. Yeah, you've got that upfront cost of moving to WA, but then, once again, long-term, you've got way more opportunities, especially if you've got work. That's exactly right.

Joe:

Next on the list was Adelaide, at 1.7%, which is much in the same as Perth.

Michael:

Adelaide's always a consistent thing it's not big, but it's not small and it's not far from Melbourne. Yeah, so it doesn't feel like you're sacrificing that much going to Adelaide.

Joe:

Not so much, and they've done a lot to promote the city. There's a lot more festivals that happen there now. They're very big on their wine tourism.

Michael:

Oh, yeah, yeah. Which valley is that? Is that the Barossa I?

Joe:

think it's the Barossa. Yeah, fact, check that one before we get to it. But Adelaide's done extremely well. I don't want to harp on too much of it because it's very similar to Perth. You're just entering at a lower end of the market. You're buying a house for $700,000 to $750,000. Even if you're an investor and this is the thing about the rental market all across Australia you don't see rent being below $500,000 or $600,000 a week.

Joe:

So if you're buying for $700,000, $750,000, you're still renting the place for $500,000, $600,000 a week. You're paying off that mortgage much faster. You're paying off. Yeah, that's exactly right. As opposed to, you can buy something for one point three, one point four million dollars in Sydney. You're still getting five hundred six hundred dollars a week rent. So rent seems to be almost uniform. I'm not going to say it's 100 percent uniform, because there are places in Sydney that you know you're going to rent for a lot higher. But we're starting to see a much more uniform rental market across Australia. So people are taking advantage. Investors are taking advantage of the high rental yield in Adelaide and Perth, which is why there's such a big demand for buyers agents right now.

Michael:

Makes sense and also it's just. It's just sort of seeming like Melbourne and Sydney. Everyone's just kind of. I think most people just been priced out. Not only that, that, they're getting over it. That's a hundred percent right, like what's what? They're getting over it? That's 100% right. What's your average person's quality of life in Sydney? Now it's dropping. I don't know if it's like dropped to a bad level, but it's dropping from what it was like pre-COVID. People aren't traveling. I'm not.

Joe:

I'm certainly not, and I've got something to add on top of that, but people aren't traveling right now.

Michael:

And the people that are Well they're already loaded.

Joe:

They're already loaded. So I want to get into the more surprising results now. Okay, and I'm kind of going to go a little bit back to front. I'm going to jumble these up a bit. Brisbane grew 1%.

Michael:

It's slowing down and I think, as those investors are now moving in, the prices are going up, not like dramatically, but slowly, so that appetite is waning. It's not gone by any means, but it's not like it was maybe six months ago or eight months ago, whatever.

Joe:

It's starting to like. It's still growing. Yeah, if a property grows by 1% a month, every month, there's still a 12% gain in 12 months, still making money. You're still making money investing in property in these areas, probably better than the inflation rate, which is three and a half 4%, but it's not growing at the exponential level that we had seen in previous months. The next result and we need to discuss this is Sydney Sydney 0.3% growth. I spoke on the podcast last week and I mentioned that I had a couple that purchased in Blacktown. They purchased for $1 million. Six months later the property was worth $1.2 million. So that's a 20% gain in six months, which is insane. Which is insane. But it's not like that all across the market. No, blacktown. They bought a house. It's got land on it, it's, you know, there's potential for development later on. Maybe they could put a granny flat on it, maybe they can make some additions, maybe you could put got options. But then you'll see other areas that aren't growing at the rate that they were earlier in the year.

Michael:

Apparently, it's more wealthy. It's wealthy areas. Yeah, basically no one can afford it, and the ones that can are already there.

Joe:

I'm looking at. I'm not talking the wealthiest areas, I'm talking about Cronulla, miranda, tarrant Point, san Susie, brighton. They've really steadied off to the point where it's like are they going to maybe dip? Is there going to be a dip?

Michael:

there. I reckon there will be a dip eventually. It can't keep going the way it's been going. It's not sustainable. It's just straight up not. People can't take it.

Joe:

That's exactly right. And wages aren't growing to the same rate. No, we see every other week another developer goes bust or another construction company goes bust, yeah, which means more layoffs, more layoffs, more layoffs.

Michael:

What's everyone supposed to do? Yeah, like you said, not sustainable.

Joe:

But Sydney at 0.3% month on month, that means it's 3.6% for the year. That means you're actually better putting your money in a term deposit account than buying one of these properties that are growing at that 0.3% rate.

Michael:

Would you call this period now like a readjustment from the crazy stuff that we've seen? 100% yeah 100%.

Joe:

I'd call it a readjustment. It can't keep booming, yeah, it can't keep increasing the way that it does, and I've mentioned this time and time again. It wasn't the average mum and dad that were going and buying these houses.

Michael:

No, no, we're families, these houses, no, no, worth families.

Joe:

It were people that had land banked in the 80s and the 90s and they were just taking advantage.

Joe:

Why wouldn't you? It was insane. They were going to auction and they were kicking the ass. They were absolutely kicking the ass of anyone that was a first-time buyer. We've got the migration issue that I've harped on about previously. You're getting a lot of external extremely wealthy families coming to Australia and either increasing the price or just outbidding everyone at the same time. I went to an auction that went $1.5 million over reserve. I turned to my wife and I go, we're already out After the first bid, I go, we're done. I looked at the families all around us and I was like we've got no chance here, right, it went a million and a half over reserve not over the guiding price, okay, reserve, because over the reserve. So the people that sold were cheering those people. Now and we're seeing this especially in winter they're in Europe.

Michael:

Why not? You just made your money.

Joe:

That's exactly right.

Michael:

My parents did a similar thing.

Joe:

They sold their house and they took the family to Europe for christmas. Because we'd never done that, yeah, because we'd never could afford it. Yeah, and we're starting to see the increase of well, no, sorry, not the increase. We're starting to see the property market actually level off a little bit, in sydney especially yeah, because of these prices. Like I just can't believe that sydney only grew 0.3 percent month to month this is good news for first-time buyers, though, isn't it? It's fantastic news for first-time buyers because they can finally buy.

Joe:

Well, I don't want to say they can finally buy where they live.

Michael:

Not quite, yeah, but it's a promising sign for their futures if they're in the process of saving for a deposit.

Joe:

If the trend continues, if the trend continues, this is the thing. This is the thing. This is the result from May to June. So this is people are starting to go to Europe, they're starting to take their holidays. They've already bought earlier in the year. The way that the property trends work in Australia is it booms at the start of the year, it cools off around winter and then it booms against September onwards.

Michael:

It's so funny, so it really does just come with the seasons funny.

Joe:

So it really does, just come with the seasons.

Michael:

It really does, because people don't want to go outside when it's raining and go bid at an auction. Yeah, fair enough, it's already miserable, why make it worse?

Joe:

these are the two biggest results. I'm going to start with hobart because I don't want to harp on too much about hobart, because there's another major capital city, but hobart is down half a percent. It's interesting I wouldn't have expected that most of us don't, because we've discussed things about. Hob thinks about Hobart, though I think about Hobart. I just bought it in Hobart.

Michael:

That's true. Yeah, you probably think about it a lot.

Joe:

But Hobart's down half a percent. It could be potentially because of the oversupply of property. It could be because it boomed too hard. Oh, and this is like a major recorrection and now it's just starting to okay, okay.

Joe:

But it's dropped half a percent month to month. But the biggest one, the biggest one we have to highlight is Melbourne is down. Melbourne is down 0.2% and Melbourne has had this trend for the last three to four years. Where Sydney is booming like hell, melbourne is growing, but Melbourne isn't booming like hell the way that Sydney is.

Michael:

No, it doesn't seem like, like Melbourne doesn't seem to be the place where you're guaranteed to make profit on your property purchases in Melbourne anymore, like that's just sort of seems to be the way it's going, whereas Sydney, at least for the last few years, has definitely been that. But now we're starting to see Sydney, maybe like just coming towards where Melbourne is, and I think that's just well. It's hard to say, because Melbourne's approving far more dwellings than Sydney is, for whatever reason I don't know, but it's happening.

Joe:

We're a much more nanny state than Melbourne, somehow.

Michael:

I think that's Australia-wide. Australia's just a big old nanny state.

Joe:

It is, but Melbourne doesn't have issues with nightlife. They don't have issues with the culture. Melbourne's a nighttime city. Sydney is a morning city, yeah, which I cannot stand.

Michael:

We've talked about this before.

Joe:

But Melbourne definitely has come down in value and they highlighted some pretty significant reasons why. So Melbourne has a high supply. Apparently, investors are selling rentals. They couldn't get the people to move in like they were expecting them to.

Michael:

Yeah, and I wonder was it because rent was too high and other people who would potentially consider renting there were just simply priced out? Because what I've been reading is that basically the places that are available in Melbourne are not really desirable places. People don't really want to live there and especially and the people that did were willing to live there aren't willing to pay those prices and this just seems to be part of that readjustment. I wonder if that's part of it, like a bit of like consumer psychology there.

Joe:

There is a bit of that. There is the higher supply. The locations where they are building aren't as desirable, but if you go to Melbourne CBD, every time I go to Melbourne CBD there seems to be a new tower. Oh okay, it's very different to Sydney CBD because we have so much. Melbourne does have a lot of heritage, but they also have more space around the actual CBD. Sydney's very twisty. It's got a lot of hills.

Joe:

So, it's not as easy to build in Sydney, like Potts Point, king's Cross, they literally had to bring in a lockout law and all these other things to be able to basically purchase these properties. To build apartments. They had to kill the nightlife. So they could do it. They did, they basically did. But Melbourne, as we could see now, the supply in the CBD is much higher than what it was in previous years and we're starting to see that across multiple suburbs. Are rents dropping in Melbourne? Yes, they are, oh they are.

Joe:

Melbourne's rents are dropping because investors are selling. They're like no F this, I'm not making money. The inner east dropped 4.4%.

Michael:

Yeah, sort of leading the charge in the drop. I've only been to Melbourne the one time, really. Yeah, surprisingly, I just never had a reason to go. I went for F1. That's the only time I went and I was sick as a dog, so I didn't really get to explore.

Joe:

You seem like a Melbourne transplant. I know it all makes sense.

Michael:

It makes sense, but no.

Joe:

The hair, the glasses, the beard the hoodie, it's all there but it's not nothing to look at what's happening down there. Inner East is down 4.4%. And this is Melbourne, inner East, like Melbourne's within Melbourne, the inner east of Melbourne. Tell it to me like it's.

Michael:

Sydney. What's a roundabout area that I could compare it to Haymarket, haymarket, okay okay, broadway, it's like the inner west part, yeah, yeah. Okay.

Joe:

It's not the most desirable part of Melbourne, but it's still. It's up there. Broadway isn't the most desirable part of Sydney, but you're not expecting to get a bargain.

Michael:

No, yeah, yeah, okay, I understand.

Joe:

So Melbourne's inner east dropping by 4.4%, the northeast dropped by 1%, and that's month on month. If that continues, a property can lose some pretty significant value pretty quickly, hence why, investors are selling. Yeah, that's exactly right. So that's a massive red flag. And then the biggest one was Mornington Peninsula.

Michael:

I'd never heard of that place, but it's a big one.

Joe:

Mornington Peninsula dropped 9.7% in a month.

Michael:

Remember when I said earlier in this podcast that I said oh, is that dramatic? Yeah, this is.

Joe:

This is the dramatic one, because there was a lot of buzz around Mornington Peninsula. People were like, yeah, I've got to go buy Mornington Peninsula, it's going to boom. Was it like a Gold Coast thing? Yeah, yeah, it had like a buzz about it and everyone was so excited to purchase there and then it dropped 9.7%. My personal idea around this is you have to be really careful and you have to really understand a CBD before you go ahead and purchase and put your hard-earned money in investing in these areas, or whether you want to live there, if you want to live somewhere, and it drops 1%. But you know the area and you know that there's more development around. They're going to be building. They're going to be. You know there's a new school coming. There's a new hospital coming. There's a new highway they're going to be.

Michael:

You know there's a new school coming. There's a new hospital coming. There's a new highway Long-term like reasons to stick around.

Joe:

You're sitting there and you're going okay, maybe it dropped a percent. I'm not going to sell because it dropped 1%, but if I'm patient I could see the vision. Yeah, If you're an investor and you're not seeing these locations every day, you're not hearing these conversations, Not even in the same state yeah, that's exactly right. And you hear that your property's dropped 10%, I'm I'm yet again shitting bricks.

Joe:

You know like it's such a funny time to be in the property market in Australia and seeing these cooling prices, seeing every major city drop not drop as in losing value, but drop at the rate that they're growing is telling me a lot. It's telling me that, hey, the interest rates being where they are, it finally worked. We're finally starting to see housing values drop and we're finally seeing people tighten their back pockets. And the number one result I want to see and this report hasn't come out yet because it comes out biannually, it comes out at the end of the year and then it comes out in the middle of the year, so it's going to come out in the next coming days Okay, the retail spending report.

Michael:

Oh, yeah, yeah, yeah, because I've definitely been spending a lot less, but that's been for a while now.

Joe:

Yeah, you just recently purchased a property. I'm looking at purchases and back in 2020 2021, when you know, job keeper, job seeker were around and everyone was just buying anything from the iconic and stuff, just because like you know, and my business was being supported by the government. Yeah, and then, on the other end of it, we also had.

Joe:

We weren't traveling, I wasn't spending money on petrol like I was you couldn't leave the house, couldn't leave the house couldn't leave the house for more than five kilometers, or whatever it was all you had to do was online shop.

Michael:

That's a bigger problem than that's a bigger problem than others.

Joe:

That's exactly right. But you know, what we're finally starting to see is the overcorrection. That's what I think has happened.

Joe:

I actually think it's overcorrected. We've gone too far. We've gone too far in the sense that building restrictions are too high, interest rates are too high, cost of living is too high. There is one petrol station down the road from my house. Okay, it's in a suburb called Patstow. Okay, this one petrol station, their petrol prices are always 20 cents less than the two petrol stations ahead of it. The traffic this one petrol station causes every single day.

Michael:

It's got six pumps, everybody goes there because it's 20 cents cheaper. It's not a little bit cheaper?

Joe:

20 cents on a 50 liter tank is 10 bucks, are you the mathematician? Yeah, it's 10. But guess what that 10 does? That gets your kid an ice cream. That gets you an ice cream. That gets them a slushy. Yeah, if you are a working family, right now 10 is a lot of money. Yeah, three years ago, 10 was is a lot of money. Three years ago, $10 wasn't a lot of money, and I've said it time and time before money used to be cheap.

Michael:

Borrowing money. Do you want to explain to some people what you mean by that, because I understand what you mean conceptually.

Joe:

So if I want to borrow $100 from you two years ago to pay you back, it would cost me $102. If I wanted to borrow money from you today $100, $. If I wanted to borrow money from you today a hundred dollars a hundred dollars would cost me a hundred six dollars. Now that doesn't sound like a lot in the grand scheme of things, but if I've got a million dollar mortgage okay, it used to be twenty thousand dollars, yeah, now it's sixty thousand dollars my wage hasn't gone up by sixty thousand dollars. No, sorry, my wage hasn't gone up by forty thousand dollars. Yeah, my wage has gone up three thousand dollars that time.

Michael:

So where are you supposed to find the extra cash?

Joe:

And it's across the board. It's Coles Woolworths, it's everywhere, and I actually want to hear what people have to say. I want to know what they think their predictions are for the property market over the next 12 months. Is this going to be a trend? Is this going to be something that we're going to see constantly, or is everyone just going to come back from Europe and spend money again?

Michael:

I don't think so. I think this will be a trend for at least the next year or something like that, I don't know, maybe longer, because I just don't think. Like we said before, it's just not sustainable. Where are people supposed to get this money, like some people can? Yeah, of course, maybe like 30% of the population, 40%, 50%, but then what are the other 50% supposed to do?

Joe:

They are basically going to be living in rent and, as we've said time and time again, living in rent is not the best decision in the world, because when you live in rent, your destiny is controlled by someone else.

Michael:

You don't even have great rights to protect you as well either. Like if you get a good landlord or a good agent or property manager or whatever, your life will be fine like a normal person. But there are terrible people in normal walks of life. If you get a terrible person as a landlord who's not only after like to make a buck but like doesn't let you do this, doesn't let you do that, but won't fix anything, won't do this, doesn't let you do that but won't fix anything, won't do this, won't do that. I've heard horror stories. Thankfully I've never experienced it.

Michael:

But when I moved out after purchasing this place, we switched property agents because the landlords live in America so they don't really give a shit what's going on, really. Yeah, so they were super chill. They let us in for really cheap just before it went nuts the rent. So we locked in a good rate before they could rise it. It went up and everything. But then when we left, they were not satisfied with certain aspects of our cleaning. They weren't satisfied with certain things and don't get me wrong, I got my mum in there to help me clean. My mum knows how to clean.

Michael:

She's a walk, mum, yeah yeah, my mom knows how to clean. She's a walk mom, so I I the quality of the clean was. I was not like questioning it, but there were, there were dumb things, so there was something I was worried about. Actually worried about was the fly screen. I had a cat in there a little bit, a little bit torn the fly screen, nothing major but a little bit torn. I'm like, okay, they're gonna get me for that, but I'm I'm willing to pay for that. What they actually put in the property report was there are water spots in the sink. There's a mark behind the fridge. You didn't take down a bathroom hook like a pull strip hook that takes two seconds to take off, because in the mess of the move we forgot the one little hook.

Joe:

You didn't know if it was there before or thereafter.

Michael:

It just was just which was. I didn't think it was a big deal either way.

Joe:

We made improvements. You got a hook now.

Michael:

This is what I thought I'm adding value to this property. But that was when our property manager changed. They gave a shit because we had a previous one and they were like, yeah, this is fine, put the cat in, put the paintings up, all this sort of stuff. They didn't care because we weren't destroying the place, we were just living in it no-transcript.

Michael:

As much as it sucks living with your parents. So that's the easiest way that you can save up for something, because I mean, depending on if you have to, you know, pay board or something, it doesn't really matter. Even if it's board, it's going to be cheaper than rent. Yeah, you know, you don't have to pay for food, you don't have to pay for this, that and the other. It's easier to not go. Obviously, not going out is a big thing, but far out I felt like I was playing catch up for the rest until I got paid again, which is not normally how it goes, really Like just little things, like just, yeah, I didn't dip into my savings or anything. But it's also like I couldn't like buy a little like other things. Yeah, like I had to sacrifice things to go out, which for me, it's like I don't really want to sacrifice, like paying for groceries because I wanted to go out, which wasn't the case because I live at home right now.

Joe:

I just hear all of these things. Our wages aren't as high as America, but our property values are higher. I hear time and time again people wanting to get in the market. They want to get in. They can actually make their repayments. I think the best advice I'm going to give to first-time buyers and I've said this time and time again look at these prices dropping as a good thing, oh, 100%. But don't get scared, Don't think to yourself property prices are dropping. Oh no, what was me? I'm not going to get into the market. I would look at it and say to myself now is the time for me to buy, because when the interest rates finally drop which could be six months, 12 months from now that is when I'm going to experience a boom and that is when I'm going to be able to accumulate some serious wealth.

Michael:

Oh yeah, property in Australia is I don't want to say it's a safe bet, but man, it's a pretty safe bet.

Joe:

It's a fairly safe bet. It is. It is. I think this is not a trend. It is. I think this is not a trend. This is a hiccup. How long do you reckon the hiccup will last?

Michael:

though, until everyone's back from Europe. You reckon it's only going to be that long Interesting.

Joe:

I just think I see end of financial year come up. Everyone's excited. I want to buy, I want to buy, I want to buy. We get a little bit of a lull effect and save money. That's it Right now. It's just refinance save me money, not anything else. Not I want to buy more property, anything, it's refinance save me more money. I might get equity out because I want to buy something in the long run To me, like the numbers in my head. I always think to myself hey, just get the equity out so you can buy something as soon as you can. At the end of the day, this is your money, your livelihood, and you don't want to make those sacrifices. And on that note, I do want to finish this episode. We could keep going for another half hour. My name is Joe, that's I'm Shmo, and if you need any assistance with your home loans, no-transcript.

People on this episode

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Joseph Daoud

Co-host
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Michael Lozina

Co-host