In this episode of Talk Property To Me, real estate agent Luke Morrison joins Brad East to reveal the impact of compounding over decades. Luke Morrison is a seasoned real estate professional with over a decade of experience in the Newcastle market. His data-driven approach empowers clients to make informed investment decisions.

Learn how waiting a few years can mean missing out on substantial gains and why "timing the market" often backfires. Don't let fear or indecision rob you of life-changing wealth. Unlock the secrets of compounding growth and take control of your financial future now.

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Timestamped summary of this episode:

00:00:01 The Power of Compounding Growth in Property Investment

Luke Morrison explains how waiting to save a larger deposit can cost around $900,000 over a four-year period due to compounding growth in property values.

00:03:13 The Importance of Acting Now in the Property Market

Brad emphasizes the urgency of buying property now, highlighting that waiting for better conditions or interest rates can be costly in the long term.

00:06:05 The Strategy of Boomers in Property Investment

Discussion on how boomers accumulated wealth by buying property early, sitting on it, and then downsizing at retirement, showcasing the benefits of long-term property ownership.

00:07:56 Media Influence on Consumer Behavior in Property Market

Exploration of how media influences consumer behavior in response to interest rate speculations, and the recommendation to refinance home loans to benefit from lower rates.

00:09:09 Advice on Refinancing Home Loans for Cost Savings

Encouragement for homeowners to proactively refinance their home loans to secure lower rates and save money, emphasizing the importance of shopping around for better deals.

00:10:09 Uncovering Bank Tactics with Interest Rates

Banks manipulate interest rates by reducing discounts over time, urging listeners to review bank statements and negotiate for lower rates by threatening to refinance.

00:11:24 Taking Control of Home Loan Discounts

Encouragement to challenge banks for rate reductions, highlighting the potential savings and financial gains from negotiating home loan discounts.

00:12:21 Overcoming Initial Costs in Property Investment

Emphasizing the short-term costs like LMI and stamp duty are quickly offset by property value growth, advocating for taking the leap into the market.

00:13:32 Timing the Real Estate Market

Advising to enter the property market now due to predicted interest rate drops and increasing property values, discussing factors influencing market growth.

00:16:48 Long-Term Wealth Building through Property Investment

Highlighting the significance of compounding growth in property investment over 30 years, contrasting it with other investment options for long-term wealth accumulation.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

#realestate #propertyinvestment #podcast #finance #propertypodcast

In this episode of Talk Property To Me, you'll dive into the complexities of borrowing for property investment with guest Toby Woodroffe, an experienced mortgage broker. He shares insights on the importance of seeking expert guidance when navigating the lending landscape, drawing from his professional experience to emphasize the potential pitfalls of attempting to navigate the lending process alone. The conversation touches on securing lending for multiple investment properties, banks' strategies, and the significance of establishing relationships with knowledgeable local mortgage brokers. Woodroffe's expertise and practical advice provide a credible basis for listeners seeking to invest in property, highlighting the value of professional guidance and long-term support. Whether you're a homebuyer or property investor, tuning in to this episode will arm you with valuable insights to make informed decisions and effectively navigate the lending landscape.

Timestamped summary of this episode:

00:00:02 - The Role of Mortgage Brokers

Brad and Toby discuss the value of mortgage brokers and why they are essential in the home loan process. Toby debunks misconceptions about broker income and fees.

00:03:37 - Banks' Profit Margins and Mortgage Brokers

Toby explains how the decreasing net interest margins of banks are linked to the increasing market share of mortgage brokers. This relationship sheds light on why banks may view brokers as a threat.

00:10:51 - Best Interest Duty and Broker Expertise

The conversation delves into the best interest duty legislation and how brokers are required to act in the best interest of their clients. The expertise and access to multiple lenders make brokers a valuable resource for borrowers.

00:13:25 - Broker Commission and Client Benefits

Brad emphasizes that brokers do not charge clients and are compensated through commissions from lenders. The discussion highlights the importance of expert advice and access to a wide range of options for borrowers.

00:14:21 - The Role of Mortgage Brokers

Toby emphasizes the value of mortgage brokers in navigating complex lending processes, highlighting their ability to secure the best outcomes, especially in the investing space.

00:15:13 - Risks of Directly Approaching Banks

Toby discusses the potential pitfalls of directly approaching banks for property investment loans, including cross collateralization and the limitations it poses on future property acquisitions.

00:16:26 - Importance of Seeking Professional Advice

Toby advises against relying solely on media and encourages seeking advice from reputable local mortgage brokers to avoid costly mistakes and ensure long-term positive relationships.

00:16:53 - Lack of Bank Support

Toby highlights the lack of ongoing support from banks after loan approval and the importance of having access to professional guidance for navigating the complexities of the property market.

00:17:29 - Conclusion and Call to Action

Brad and Toby sign off, urging listeners to engage in the social media community and seek professional advice for any property-related questions or concerns.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In the podcast episode, Aaron Downie joins host Brad East to share his insights on property investment strategies and market trends. As an experienced investor with a keen eye for analyzing market dynamics, Aaron offers practical perspectives on the controversial topic of investing in Perth. Through his personal experiences and expertise, he delves into the nuances of investing in units versus houses, emphasizing the significance of local market analysis. The discussion also highlights the impact of heavy reliance on mining in the Western Australian economy and the need to consider macroeconomic factors when making investment decisions. Aaron's practical approach and real-world examples make the content relatable and accessible, providing valuable insights for property investors seeking to make informed decisions. His expertise, combined with the host's industry background, lends credibility to the conversation, offering a thought-provoking exploration of property investment strategies and market dynamics. If you're seeking to gain a deeper understanding of the complexities of property investment and want to make informed decisions in the Perth market, this episode is a must-listen, offering valuable insights and practical perspectives to guide your investment journey.

Timestamped summary of this episode:

00:00:02 - The Controversy of Perth as an Investment Location

Brad and Aaron discuss the controversial topic of investing in Perth, addressing the current market talk and reasons why some believe it's the best investment place.

00:04:42 - Perth's Reliance on the Mining Sector

The conversation delves into the significant reliance of Perth's economy on the mining sector, with Aaron highlighting the massive 59% contribution of mining to the Western Australian economy.

00:09:17 - Affordability Crisis and Investment Strategies

Brad emphasizes the affordability crisis as a primary reason for investing in Perth, while also discussing the importance of considering different investment strategies and long-term goals.

00:13:53 - Units vs. Houses: Investment Considerations

Aaron challenges the generalization that land appreciates more than strata-titled properties, highlighting the importance of considering factors such as supply and demand in the market when evaluating investment options.

00:15:21 - Case Study: House vs. Unit Investment

The hosts share a real-life example of a client's bias towards purchasing a house over a unit, demonstrating the importance of challenging preconceived notions and considering all investment options.

00:15:41 - Investing in Units vs. Houses

Aaron and Brad discuss the pros and cons of investing in units vs. houses, emphasizing the importance of analyzing the local market and growth potential.

00:16:48 - Suburb Growth and Investment

The conversation shifts to comparing suburb growth in Newcastle, highlighting the significant difference in growth between different areas and the impact on investment choices.

00:18:14 - Risks in the Perth Market

The focus turns to the Perth market, with concerns raised about its heavy reliance on mining and the potential impact of macroeconomic factors on property investments.

00:19:47 - Diversifying Investment Locations

Aaron and Brad advocate for diversifying investment locations, suggesting alternative markets like Adelaide and Newcastle due to their consistent long-term growth and lower reliance on specific industries.

00:22:27 - Conclusion and Call to Action

The episode wraps up with a reminder to listeners to consider the long-term data and trends in potential investment locations, and to reach out with any questions or topic requests for future episodes.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In this episode of Talk Property To Me, Brad East chats with Aaron Downie, a seasoned expert from Mackenzie Buyer's Agency, sharing valuable insights on property investment and the ideal timing for purchasing property. Aaron's extensive experience in navigating the property market and his practical approach make him a relevant and credible voice on the podcast. The conversation covers the urgency of taking action in the property market, debunking the myth of trying to out-save market growth, and emphasizing the importance of seizing opportunities aligned with long-term goals. Aaron's personal anecdotes and practical advice provide a refreshing perspective, offering listeners valuable insights into the complexities of property investment and the significance of informed decision-making. The episode not only challenges common misconceptions but also lays the groundwork for future discussions on specialized property investment topics, making it a must-listen for potential property buyers looking to make strategic and confident investment decisions.

Timestamped summary of this episode:

00:00:24 - The Best Time to Buy an Investment Property

Brad and Aaron discuss the common question of when is the best time to buy an investment property. They emphasize that interest rates are just one factor and share examples of successful market timing.

00:03:16 - Taking Advantage of Market Conditions

Brad shares his personal experience of purchasing property during a time of market uncertainty and seeing significant growth in a short period. Aaron highlights the importance of understanding supply and demand dynamics in a market, rather than solely relying on interest rates.

00:06:40 - The Long-Term Perspective on Property Investment

The conversation delves into the long-term nature of property investment, emphasizing that property should be viewed as a long-term asset. They discuss the pitfalls of tracking property prices daily and the transactional costs of selling property.

00:09:28 - Influence of External Factors on Property Decisions

Brad and Aaron touch on the influence of external factors, such as parental advice and media narratives, on property decisions. They caution against taking advice from individuals who may not be where you want to be in terms of property ownership.

00:12:06 - Impact of Procrastination on Property Purchases

The discussion addresses the consequences of procrastination in property purchases, particularly when individuals have pre-approval but delay buying, only to find themselves priced out of the market. They highlight the compound loss over time due to delaying property purchase decisions.

00:13:43 - Urgency of Taking Action

Aaron emphasizes the importance of taking action in the property market without waiting. He highlights how borrowing capacities have decreased for some, stressing the need to align expectations and not try to out-save the market.

00:15:24 - Best Time to Buy

Brad and Aaron discuss the best time to buy a property, focusing on the importance of establishing short and long-term goals, regardless of whether it's for owner-occupiers or investors. They emphasize the need to buy as soon as one is able to.

00:17:16 - Rent Vesting Strategy

The conversation shifts to the rent vesting strategy, which has become popular in expensive markets like Sydney and Newcastle. They highlight the challenges of affordability and the impact of various financial factors on purchasing decisions.

00:18:22 - Overcoming Barriers to Purchase

Brad and Aaron discuss the willingness to buy property using lenders mortgage insurance and the opportunity cost of waiting to avoid such costs. They stress the importance of considering it as a cost of purchase and not delaying the buying process.

00:19:52 - Future Topics and Engagement

Brad and Aaron preview upcoming podcast topics, including an in-depth look at the Perth market, strata titled and titled properties, units versus houses, and new versus old properties. They encourage audience engagement for suggestions on future topics.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In this episode of Talk Property To Me, Cameron Smith from Waterford Financial Services joins host Brad East to dive into the intricacies of the Consumer Price Index (CPI) and its impact on interest rates. With Smith's expertise in finance and economic trends, he offers valuable insights into the trends in inflation, the analysis of CPI groupings, and the influence of the education sector on inflation. The conversation provides a critical perspective on the complex relationship between inflation, interest rates, and economic trends, emphasizing the need for a nuanced understanding of various factors that contribute to price fluctuations. By delving into the potential implications of economic factors on different sectors and consumer behaviour, this episode equips property investors and finance professionals with nuanced economic insights, enabling them to make informed decisions based on a deeper understanding of economic trends. Whether you're seeking to grasp the impact of CPI on interest rates or understand the unpredictability of economic trends, this episode offers valuable perspectives for navigating the complex world of finance and property investment.

Timestamped summary of this episode:

00:00:00 - Introduction and Season Update

Brad introduces Cameron Smith from Waterford Financial Services and announces Casey's temporary absence from the podcast. They discuss the start of season two and upcoming episodes.

00:02:18 - Predictions for RBA Decision

Brad and Cameron discuss their predictions for the RBA decision happening that day. They talk about the potential rise in interest rates later in the year and how economists' predictions have changed.

00:04:46 - Breakdown of CPI Groupings

Brad breaks down the CPI groupings, discussing the inflation figures for different categories such as food, clothing, housing, health, and education. They analyse the impact of each category on inflation.

00:09:32 - Impact of Education Sector on Inflation

Brad and Cameron delve into the significant increase of 5.9% in the education sector and its impact on inflation. They discuss the reasons behind the spike and its implications for individuals with HECS debt.

00:13:31 - The Role of Interest Rates in Inflation

Brad and Cameron debate the effectiveness of increasing interest rates to control inflation, particularly in sectors like education and insurance. They question the impact of interest rates on various demographics and sectors in the economy.

00:14:28 - Trends in Insurance Premiums

Cameron discusses the fluctuations in insurance premiums over the past few years, with some companies increasing policies by 515 percent in a year. He predicts a holding pattern for the rest of the year.

00:15:27 - Impact on Retail Sectors

Cameron highlights the potential negative impact of increasing home loans on retail sectors like clothing and food. He believes that increasing rates will not help these already struggling sectors.

00:16:14 - Potential Economic Factors

Cameron mentions the potential impact of war on shipping channels and the cost of imported goods. He discusses the possibility of a 0.25 increase and its minimal effect on people.

00:16:59 - Understanding Inflation

Cameron emphasizes the importance of understanding inflation as an average of subgroupings. He mentions that the RBA considers these subgroupings when making decisions.

00:17:42 - Conclusion and Call to Action

Brad and Cameron wrap up the conversation, encouraging listeners to provide feedback on the content and suggest topics for future episodes.

ABOUT THE HOST

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

In this episode of Talk Property To Me, Luke Morrison from Belle Property in Newcastle shares valuable insights into the current property market in Newcastle and Lake Macquarie. As a specialist in the Minmi Fletcher and Maryland areas, Luke's expertise shines through as he discusses the strong market in the 500,000 to 1.5 million price range, particularly for first home buyers. He highlights the high demand in this bracket and the influx of buyers from inner-city Newcastle looking for larger family homes in outer areas like Fletcher. Luke also addresses the challenges of affordability in the region, pointing out the rising property prices and the impact on first home buyers. Additionally, the discussion covers the impact of COVID-19 on the real estate market, buyer behavior shifts, and the use of auctions versus private treaties.

Timestamped summary of this episode:
00:00:00 - Introduction and Property Market Overview
The hosts introduce the guest, Luke Morrison from Bell Property in Newcastle, and discuss the property market in Newcastle and Lake Macquarie. They question whether the area has missed the boat in terms of property growth and discuss further potential growth.

00:06:21 - Demand for Properties and Auctions
Luke mentions increased open home numbers and outer area buyers showing interest in properties. He discusses the effectiveness of auctions for properties over 1.2 million in creating a sense of urgency and maximizing buyer engagement.

00:10:08 - Rising Property Values and Affordability
The conversation delves into the significant increase in property values (38.4%) compared to income growth (20%) since the start of COVID. They highlight the affordability issue in Newcastle and Lake Macquarie, making it challenging for first home buyers to enter the market.

00:11:25 - First Home Buyers Challenges
Luke elaborates on the challenges faced by first home buyers, including the increase in average first home buyer budget to around 900k and the difficulties in finding properties below 800k to benefit from stamp duty concessions.

00:11:58 - Stamp Duty Benefits and Property Prices
The conversation concludes with a discussion on the sliding scale of stamp duty benefits based on property prices and the challenges of finding properties below 800k amidst rising property prices in the area.

00:12:27 - Property Market in Newcastle
Luke discusses the current property market figures in the north Lampton area and the potential for property value increase in Lake Macquarie Newcastle areas.

00:13:09 - Predictions on Interest Rate Decrease
The discussion revolves around predictions of interest rate decreases by economists, and the potential impact on property prices.

00:15:11 - Impact of Rate Decrease on Property Prices
The conversation delves into the psychology of rate decreases leading to increased property prices, and the potential half a percent decrease before the end of the year.

00:16:44 - Market Activity During School Holidays
The hosts discuss the impact of school holidays on market activity, with expectations of a slight dip and a potential boom after Anzac day.

00:19:45 - Impact of Age on Tolerance for Alcohol
The conversation takes a turn towards personal experiences with alcohol, discussing the impact of age on the tolerance for alcohol and the decision to stay sober.

ABOUT THE HOSTS

BRAD EAST
Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

CASEY TAYLOR
Casey Taylor is the Managing Director of Taylored Property Welth who specializes in helping clients purchase high-performing investment properties. Casey has a huge amount of knowledge when it comes to property investment and will be sharing this with the listeners.

Website → https://tayloredpropertywealth.com.au

LinkedIn → https://www.linkedin.com/in/wealth-property-buyersagent-investment-financialfreedom/

Instagram → https://www.instagram.com/casey.taylor_tpw_buyersagent/

Facebook → https://www.facebook.com/tayloredpropertywealth

In this episode of Talk Property To Me, hosts Brad East and Casey Taylor engage in a comprehensive analysis of the RBA meeting, economic indicators, and property market trends, offering valuable insights for listeners looking to understand the current landscape and make informed decisions in the property and finance sectors. With Casey's expertise, the conversation delves into the impact of RBA decisions on interest rates and inflation, challenges in the construction industry and housing supply, migration trends and housing demand, investor lending and property market confidence, and rental market pressures. With a critical perspective on economic and market forecasts, the episode emphasizes the importance of informed decision-making and thorough research for property investments and buying property. Casey's insights make this episode essential listening for property investors and potential homebuyers, providing a nuanced understanding of the complexities of the property market and guiding listeners towards informed decision-making in their property ventures.

Timestamped summary of this episode:
00:00:00 - RBA Meeting and Interest Rates
The RBA meeting held interest rates at 4.35%, citing concerns about rising fuel prices and inflation. Speculation about potential rate cuts in the future, with economists predicting a possible reduction by the end of the year.
00:07:50 - Property Market Numbers
Building approvals are significantly below the government's target, while overseas migration is increasing demand for housing. Despite more people coming into the country, construction businesses are collapsing, making it challenging to meet housing demands.
00:11:25 - Builder Caution and Listing Levels
Caution advised when choosing a builder due to the risk of builders going bankrupt. Listing levels are below five-year averages, leading to a shortage of available properties in the market.
00:12:34 - Investor Confidence and Rental Market
Investor lending is up 18.5%, indicating increased confidence in the property market. Low vacancy rates in major cities are putting pressure on the rental market, making it difficult to find available properties.
00:13:38 - Property Market Trends and Demand
Current property market trends reflect extremely low vacancy rates and minimal days on the market for properties, indicating high demand and strong investor interest in the market.
00:14:14 - Property Market Trends
Brad and Casey discuss the current property market trends, noting increased days on the market and varying growth rates across cities.
00:14:56 - City-specific Growth
The conversation highlights the growth rates in Sydney, Melbourne, Brisbane, Adelaide, and Perth, with some cities performing strongly while others remain flat.
00:16:09 - Quarterly Performance
Quarterly growth rates are compared, with Brisbane, Adelaide, and Perth showing significant growth, while Melbourne and Sydney have varied performances.
00:17:19 - Rental Income and Gross Yields
The discussion covers the annual change in rents and the impact on gross yields, with Perth, Melbourne, and Adelaide showing substantial increases in rental income.
00:19:30 - Future Market Outlook
The conversation concludes with a positive outlook for the property market, emphasizing the importance of taking action now before rates reduce and competition increases.

ABOUT THE HOSTS

BRAD EAST
Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

CASEY TAYLOR
Casey Taylor is the Managing Director of Taylored Property Wealth who specializes in helping clients purchase high-performing investment properties. Casey has a huge amount of knowledge when it comes to property investment and will be sharing this with the listeners.

Website → https://tayloredpropertywealth.com.au

LinkedIn → https://www.linkedin.com/in/wealth-property-buyersagent-investment-financialfreedom/

Instagram → https://www.instagram.com/casey.taylor_tpw_buyersagent/

Facebook → https://www.facebook.com/tayloredpropertywealth