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In this episode of Talk Property To Me, I, Brad East, am joined by Cameron Smith from Waterford Financial Planners to discuss a compelling case study on how to significantly boost your retirement savings through strategic financial planning. We dive into the details of how a couple, currently aged 48, can potentially retire with an additional $1.5 million by making informed decisions about their superannuation.
We start by examining the couple's current financial situation, which includes a combined super balance of just over $650,000 and a principal residence valued at $1.5 million. The discussion centres around two primary options: leaving their super in a traditional industry fund versus establishing a self-managed super fund (SMSF). Cameron explains the setup process for an SMSF, highlighting the initial costs and the long-term benefits that can outweigh these expenses.
Throughout the episode, we emphasize the importance of understanding the potential growth of investments. Using conservative projections, we illustrate how the couple could see their super balance grow to approximately $3.5 million if they remain in an industry fund. In contrast, by setting up an SMSF and investing in property and shares, they could see their total net assets soar to around $5.1 million by the time they reach 65.
We also discuss the mechanics of self-managed super funds, including the limited recourse borrowing arrangement (LRBA) that protects the fund's other assets in case of default on the property loan. Cameron provides insights into the types of contributions that can be made to the SMSF, including employer contributions and concessional contributions, and how these can be leveraged to maximize retirement savings.
Additionally, we touch on the importance of compliance and the regulations surrounding SMSFs, including what cannot be done with the fund, such as using it for personal expenses or renting to related parties. Cameron shares valuable tips for business owners on how they can utilize their SMSF to purchase commercial properties and lease them back to their businesses.
As we wrap up the episode, we reinforce the message that taking action now can lead to substantial financial benefits in the future. The compounding growth of investments over time is a critical factor in building wealth for retirement, and we encourage listeners to consider their options carefully.
For anyone interested in learning more about self-managed super funds or financial planning strategies, I invite you to reach out to Cameron Smith at Waterford Financial Planners. His contact details will be available in the show notes.
Thank you for tuning in, and as always, if you have topics you'd like us to cover in future episodes, feel free to share your suggestions!
00:00:00 - Introduction to Retirement Planning 00:01:00 - Self-Managed Super Funds Explained 00:02:30 - Cost vs. Benefit of SMSFs 00:03:30 - Minimum Requirements for SMSFs 00:04:30 - Member Balances and Splitting Super 00:05:30 - Case Study Overview 00:06:00 - Industry Fund vs. SMSF Comparison 00:08:00 - Growth Projections for SMSF 00:09:00 - No Additional Contributions Needed 00:10:00 - Lending Perspective on SMSFs 00:11:00 - Types of Contributions to Super 00:12:00 - Using Unused Contribution Caps 00:13:00 - Accessing Funds and Compliance 00:14:00 - Restrictions on SMSF Usage 00:15:00 - Commercial Property Strategies 00:16:00 - Conclusion and Key TakeawaysABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, and alongside my co-host Aaron Downie, we dive deep into the vibrant property market of Newcastle, exploring its historical evolution and future potential for investors.
In this episode, we discuss whether Newcastle is still a viable investment opportunity as we look ahead to 2025. We start by unpacking the historical context of Newcastle, which has transitioned from an industrial hub, known as the "Steel City," to a gentrified urban area with significant growth potential. We highlight the transformation of key areas like the Honeysuckle Precinct, which has evolved from a derelict industrial site to a thriving waterfront community.
We analyse the cyclical nature of Newcastle's property market, noting how past economic events, such as the GFC and COVID-19, have influenced buyer confidence and market dynamics. Despite recent high interest rates cooling the market, we observe that certain properties are still trading quickly, particularly in the sub-million dollar range, while others linger on the market longer.
As we look to the future, we discuss the impressive population growth forecast for Newcastle, projected at around 21% over the next two decades, which is above the New South Wales average. This growth is supported by substantial infrastructure investments, including upgrades to Newcastle Airport, the extension of the M1 motorway, and the development of a clean energy precinct at the Port of Newcastle. These projects are expected to create thousands of jobs and boost the local economy, making Newcastle an attractive place to live and invest.
We also touch on the ongoing redevelopment of the East End and Honeysuckle areas, which are becoming increasingly desirable for both residents and investors. With a focus on specific suburbs, we share our top recommendations for investment, including Lambton, New Lambton Heights, and Rankin Park, which are all positioned for significant growth due to their proximity to key amenities like hospitals and universities.
Throughout the episode, we emphasise the importance of understanding the nuances of the property market, including the need for situational awareness when selecting properties. We conclude by inviting listeners to reach out for personalised advice on navigating the Newcastle property landscape.
Join us as we explore the exciting opportunities that Newcastle has to offer for both first-time buyers and seasoned investors. Whether you're looking to buy, sell, or simply learn more about the market, this episode is packed with valuable insights and expert recommendations. Don't miss it!
00:00:00 - Introduction to Newcastle's Property Market 00:00:24 - Historical Overview of Newcastle 00:01:01 - Transition from Industrial to Gentrified City 00:02:19 - Sustaining Growth in Newcastle 00:03:31 - Impact of Economic Events on the Market 00:04:03 - Revitalization of Waterfront Areas 00:05:21 - Post-COVID Market Dynamics 00:06:27 - Current Buyer’s Market Analysis 00:07:23 - Future Market Predictions for 2025 00:09:13 - Population Growth and Infrastructure Investment 00:10:13 - Long-Term Population Forecast 00:11:50 - Major Infrastructure Developments 00:12:59 - Newcastle Airport Upgrades 00:13:43 - M1 Motorway Extension 00:14:52 - Port of Newcastle Developments 00:16:00 - John Hunter Hospital Investments 00:19:02 - University Expansion and Its Impact 00:20:13 - East End Redevelopment 00:22:43 - Top Suburbs for Investment 00:24:25 - Key Suburbs: New Lambton and Rankin Park 00:26:12 - Emerging Areas: Tighes Hill and Mayfield East 00:27:25 - Importance of Property Type and Strategy 00:28:15 - Future Topics and ConclusionABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Episode Synopsis: 5 Common Mistakes First Home Buyers Make
Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a topic that resonates with many: the five common mistakes that first home buyers often make.
We kick things off by discussing the pitfalls of taking too much advice from family and friends, particularly parents. While they may have good intentions, their experiences from decades ago may not apply to today's competitive market. We share a cautionary tale about a client whose father's advice led to a significant financial loss during a property auction. This highlights the importance of trusting professionals in the industry, such as mortgage brokers and buyer's agents, who can provide tailored advice based on current market conditions.
Next, we address the tendency of first home buyers to overextend themselves financially in an attempt to keep up with their peers. We emphasise the importance of understanding your own financial situation and making decisions based on your long-term goals rather than ego or status. We encourage listeners to take the slow and steady approach, focusing on affordability and potential for future equity growth.
Moving on, we discuss the critical mistake of not obtaining an independent pest and building report. We stress the importance of hiring qualified inspectors to ensure that buyers are fully aware of any potential issues with a property, rather than relying on reports provided by real estate agents, which may not be thorough.
We also touch on the dangers of copying others' strategies without considering personal circumstances. Each buyer's situation is unique, and it's essential to align property purchases with individual goals, whether that means buying a home to live in or pursuing a rent-vesting strategy.
Finally, we tackle the common misconception that waiting for market conditions to improve or trying to save more money will lead to better opportunities. We illustrate this with a real-life example of a first home buyer who hesitated to purchase a property within his budget, only to find that market prices were rising faster than he could save. We encourage listeners to act when they are ready, as capital growth can often outpace savings.
Throughout the episode, we provide valuable insights and practical advice for first home buyers, urging them to make informed decisions based on their unique circumstances. If you have any topics you'd like us to cover in future episodes, feel free to reach out in the comments or send us a message. Thanks for tuning in, and we look forward to seeing you next time!
00:00:00 - Introduction to Common Mistakes for First Home Buyers 00:00:12 - Mistake #1: Over Reliance on Family Advice 00:04:26 - Mistake #2: Keeping Up with Friends and Overextending Financially 00:06:36 - Mistake #3: Skipping Pest and Building Inspections 00:10:10 - Mistake #4: Copying Others' Strategies 00:12:03 - Mistake #5: Waiting for Better Market Conditions 00:16:01 - Conclusion and Call for TopicsABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Episode Synopsis: Submitting Offers and Negotiating with Agents
Welcome back to another episode of Talk Property to Me! I'm your host, Brad East, alongside my co-host, Aaron Downey. In this episode, we dive deep into one of the most crucial aspects of purchasing a property: submitting offers and negotiating with real estate agents.
We kick off the discussion by emphasising the importance of making a successful offer, which can potentially save you thousands of dollars. We explore the different types of property sales, including private treaties, auctions, and expressions of interest, and how each type influences the negotiation process.
Key Topics Covered: Understanding Different Sales Types We explain what a private treaty is and how it can vary from agent to agent. Some agents may accept offers as they come, while others might run a campaign before negotiating. We discuss the auction process, including pre-auction offers and the conditions that come with them. Expressions of interest are also covered, highlighting their use in the current market and the implications for buyers. The Role of Real Estate Agents We delve into how agents qualify buyers and the tactics they use to gauge interest and drive prices up. The concept of "anchoring" is introduced, where agents set a psychological benchmark price to influence buyer perceptions. Negotiation Strategies We share effective negotiation techniques, such as understanding the seller's motivations and using favourable terms to craft your offer. The importance of being prepared with due diligence, including pest and building inspections, is emphasised to strengthen your position. Psychological Tactics We discuss the psychological aspects of negotiation, including the power of silence and the willingness to walk away. The episode highlights how emotional responses can be manipulated by agents and how buyers can maintain control. Real-Life Scenarios Aaron shares his personal experience of buying a property, illustrating the tactics used by agents and how he navigated the process. We also touch on the concept of artificial scarcity and how it can affect buyer decisions. Final Tips for Buyers We conclude with actionable advice for listeners, encouraging them to understand the market, know the seller's needs, and remain calm during negotiations.Throughout the episode, we stress that real estate agents are not your friends; they work for the seller. Understanding this dynamic is crucial for any buyer looking to navigate the property market successfully.
Join us for this insightful discussion, and don't forget to like, share, and subscribe to our podcast. If you have any topics you'd like us to cover in future episodes, feel free to reach out in our Facebook group. Thanks for tuning in, and we look forward to catching you in the next episode!
00:00:00 - Introduction to Offers and Negotiations
Welcome back to Talk Property to Me. Discussion on the importance of submitting offers and negotiating with agents.
00:00:10 - Types of Sales: Private Treaty, Auctions, and Expressions of Interest
Overview of different sales methods and their implications for making offers.
00:00:37 - The Role of Real Estate Agents in Negotiation
How agents qualify buyers and the importance of the initial interaction.
00:01:10 - Understanding Private Treaty Sales
Explanation of private treaty sales and how offers are handled.
00:02:14 - Negotiation Starts Early
The significance of the first meeting with the agent and how it sets the stage for negotiations.
00:03:17 - Anchoring Tactics in Real Estate
Discussion on the anchoring tactic and how it influences buyer perception.
00:04:36 - Psychology of Pricing and Discounts
How pricing strategies can create a sense of urgency and perceived value.
00:05:57 - Current Market Dynamics
Analysis of buyer behaviour in the current market and the impact of supply and demand.
00:07:50 - Crafting Offers Beyond Price
Importance of terms and conditions in making a compelling offer.
00:09:18 - Understanding Auction Processes
Details on how auctions work and the significance of unconditional offers.
00:10:45 - Expression of Interest Explained
What expressions of interest mean in the current market context.
00:12:22 - Best and Final Offers
Discussion on the concept of best and final offers and the potential pitfalls.
00:13:51 - The Importance of Silence in Negotiation
How silence can be a powerful tool in negotiations with agents.
00:15:16 - Recognizing Artificial Scarcity
Understanding how agents create a sense of urgency and scarcity.
00:17:08 - The Role of Research in Offers
The necessity of thorough research before making an offer.
00:19:04 - Walking Away as a Strategy
The power of being willing to walk away from a deal.
00:20:38 - Emotional Control in Negotiations
The importance of maintaining emotional distance during negotiations.
00:22:44 - Summary of Key Negotiation Tactics
Recap of the main tactics discussed for effective negotiation.
00:24:15 - Top Tips for Buyers in the Current Market
Final advice for buyers on navigating the current real estate landscape.
00:26:03 - Watch Out for Common Tactics
Identifying tactics to be wary of during the buying process.
00:28:05 - Communicating with Conveyancers
The benefits of direct communication with conveyancers over agents.
00:29:12 - Final Thoughts on Real Estate Agents
Understanding the role of agents and the importance of buyer representation.
00:32:05 - Conclusion and Call to Action
Wrap-up of the episode and encouragement to engage with the podcast.
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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the essential steps for first home buyers, providing a comprehensive guide to navigate the often overwhelming process of purchasing your first property.
We kick off the discussion by addressing the most significant hurdle for first-time buyers: saving for a deposit. We explore the common misconceptions surrounding deposit amounts, particularly the traditional 20% benchmark, and introduce the concept of Lenders Mortgage Insurance (LMI). We explain how LMI protects the bank rather than the borrower and discuss the implications of needing to save a substantial deposit versus a smaller one.
Next, we highlight the government initiatives available to assist first home buyers, such as the First Home Loan Deposit Scheme, which allows buyers to purchase with as little as a 5% deposit without incurring LMI. We clarify the eligibility criteria for this scheme and compare it to the shared equity scheme proposed by the Labor government. Additionally, we touch on the First Home Super Saver Scheme, although we note that it’s not as commonly utilised.
As we move forward, we emphasise the importance of understanding all costs associated with buying a home, including stamp duty, legal fees, and inspection costs. We break down the specifics of stamp duty exemptions for first home buyers in New South Wales and discuss how these costs can significantly impact the total amount needed to enter the market.
We also provide practical tips for saving more effectively, such as setting up separate bank accounts to manage living expenses and savings. We share personal anecdotes about investment apps that can help buyers accumulate savings over time.
Transitioning into the finance side of things, we discuss the importance of obtaining pre-approval for a loan and the difference between pre-approval and formal approval. We stress the need for potential buyers to consult with a mortgage broker to understand their borrowing capacity and to prepare for the application process.
In the latter part of the episode, we shift our focus to the property search itself. We discuss how to conduct market research, the significance of understanding your budget, and the factors to consider when choosing a location. We provide insights into the psychology of pricing in real estate and how to interpret guide prices versus sold prices.
Finally, we walk listeners through the process of making an offer, the importance of understanding contracts, and the nuances of auction versus private treaty sales. We emphasise the need for buyers to be well-prepared and informed to make strong offers and navigate the settlement process smoothly.
Throughout the episode, we aim to empower first home buyers with the knowledge and tools they need to make informed decisions in their property journey. Whether you're just starting to save or are ready to make an offer, this episode is packed with valuable insights to help you succeed in the competitive real estate market.
Join us as we break down the complexities of buying your first home and provide you with the confidence to take the next steps in your property journey!
00:00:00 - Introduction to First Home Buyers 101 00:01:06 - The Challenge of Saving a Deposit 00:01:17 - Understanding Lenders Mortgage Insurance (LMI) 00:02:10 - Government Schemes: First Home Loan Deposit Scheme 00:04:14 - Eligibility for Government Schemes 00:05:37 - First Home Super Saver Scheme 00:06:33 - Additional Costs Beyond the Deposit 00:07:04 - Stamp Duty Exemptions for First Home Buyers 00:08:00 - Legal Fees and Other Costs 00:09:03 - Inspection Costs and Their Importance 00:09:36 - First Home Owners Grant Overview 00:10:51 - Strategies for Saving More 00:11:26 - Investment Apps and Budgeting Tips 00:12:57 - Guarantor Loans Explained 00:13:54 - The Importance of Pre-Approval 00:15:39 - Understanding Borrowing Capacity 00:19:25 - Credit Scores and Their Impact 00:21:00 - Managing Credit Inquiries 00:23:12 - Types of Home Loans: Fixed vs. Variable 00:25:32 - Offset Accounts vs. Redraw Facilities 00:27:51 - Finalising the Finance Side 00:28:11 - Researching the Property Market 00:30:07 - Understanding Market Dynamics 00:31:04 - Analysing Days on Market 00:32:02 - Making Strong Offers 00:34:35 - Navigating the Offer Process 00:36:06 - Understanding Contracts and Cooling Off Periods 00:38:01 - Auction vs. Private Treaty Purchases 00:39:54 - Vendor Considerations in Offers 00:40:21 - Final Steps After Offer Acceptance 00:42:57 - Settlement Day Expectations 00:45:02 - Conclusion and Advice for First Home BuyersABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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In this episode of Talk Property To Me, hosts Brad East and Thomas Hook from Walkom Real Estate delve into the current state and future predictions of property prices in Australia, with a particular focus on Newcastle, New South Wales.
We kick off the discussion by addressing the pressing issue of housing shortages in Australia, exacerbated by soaring immigration rates. With the Australian government granting 1.1 million new visas in 2023, we highlight the stark contrast between this surge in demand and the 8.1% drop in housing approvals during the same period. This imbalance raises significant concerns about the future of housing availability.
Thomas shares some eye-opening statistics regarding construction costs, which have skyrocketed by 30% since early 2021. We explore the reasons behind these rising costs, including supply chain disruptions and a tight labour market, which have made it increasingly difficult for builders to meet the growing demand for housing. The conversation touches on the impact of government infrastructure projects that are diverting labour away from residential construction, further complicating the situation.
As we analyse the current real estate landscape, we discuss the challenges faced by potential homebuyers and investors. With rental vacancy rates hovering around 1% nationwide, we reflect on the difficulties renters are experiencing in finding suitable properties. We also examine the high expectations of vendors in the current market, leading to longer days on market for listings.
Throughout the episode, we consider innovative solutions being implemented in countries like Japan and Sweden, particularly the rise of prefab housing as a potential answer to the housing crisis. We discuss how these models could be adapted to the Australian context, especially in light of our unique land availability issues.
Finally, we wrap up the episode by discussing the local market dynamics in Newcastle, noting the increase in listings but a decrease in buyer urgency. We speculate on the potential for a market rebound if interest rates drop, which could reignite buyer activity and influence property prices.
As always, we encourage our listeners to engage with us by leaving comments or questions, and we welcome suggestions for future topics. Join us for this insightful discussion as we navigate the complexities of the Australian property market and its future trajectory.
00:00:00 - Introduction and Overview 00:01:12 - Current Housing Shortage 00:01:54 - Rising Construction Costs 00:03:12 - Supply Chain Disruptions 00:05:03 - Immigration vs. Housing Approvals 00:06:26 - Rental Market Pressures 00:08:18 - Need for Regional Development 00:09:49 - Pandemic's Long-Term Effects 00:12:52 - Builder Liquidations 00:14:57 - Government Initiatives for Housing Affordability 00:16:22 - Delays in Council Approvals 00:18:45 - Prefab Housing Solutions 00:20:02 - Local Market Trends 00:22:52 - Impact of Interest Rates on Buyer Behaviour 00:24:49 - Conclusion and Call to ActionABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the Top 10 Rules of Property Investing, a compilation of essential guidelines we've gathered from our years of experience in the industry. These rules are designed to be non-negotiable principles that can significantly enhance your success in property investing.
We kick off the discussion with Rule #1: Location. We emphasize the importance of choosing the right location for your investment property, highlighting that not all locations are created equal. We discuss factors such as population growth, future development, and economic activity that can influence property values. We also touch on the idea of investing in familiar markets, like Newcastle, and the potential benefits of working with a buyer's agent if you're looking to expand your portfolio quickly.
Next, we move to Rule #2: Power of Leverage. We explain how leveraging equity can amplify your wealth, allowing you to invest in properties worth significantly more than your initial deposit. We also discuss the implications of Loan-to-Value Ratios (LVR) and how they can affect your cash flow.
In Rule #3: Balance of Cash Flow and Growth, we stress the importance of diversifying your property types to achieve a mix of high yields and capital growth. We provide strategies for increasing cash flow, such as adding granny flats or investing in different suburbs.
Rule #4: Know Your Numbers is crucial for any investor. We urge listeners to avoid guesswork and instead rely on detailed calculations of income, expenses, and potential returns. We highlight the importance of understanding all costs associated with property investment, including management fees and exit costs.
Moving on to Rule #5: Time in the Market, we discuss the significance of long-term investment over trying to time the market perfectly. We share insights on how compounding growth can lead to substantial wealth over time.
In Rule #6: Speculation, we caution against relying on media headlines and speculation when making investment decisions. Instead, we recommend using reliable data sources and tools to inform your choices.
Rule #7: Exit Strategy is another vital aspect we cover. We emphasize the need to have a clear plan for how you will exit your investment, whether through selling, pulling equity, or converting the property into your principal residence.
Rule #8: Diversification encourages investors to consider different asset types and locations. We discuss the merits of investing in apartments versus houses and the importance of understanding market demand.
In Rule #9: Using the Tax System to Your Advantage, we delve into strategies like negative gearing and depreciation. We stress the importance of working with a knowledgeable accountant to maximize your tax benefits.
Finally, we wrap up with Rule #10: Build a Professional Network. We highlight the necessity of surrounding yourself with experienced professionals, such as accountants, mortgage brokers, and buyer's agents, to support your investment journey.
Join us as we unpack these rules in detail, providing you with the insights and knowledge you need to navigate the property investment landscape successfully. Don't forget to subscribe, like, and share your thoughts with us! We look forward to catching you in the next episode, where we may explore property cycles or delve deeper into gearing and tax advantages. Thank you for listening!
00:00:00 - Introduction to Property Investing Rules 00:00:10 - Rule 1: Location Matters 00:01:00 - Understanding Location Dynamics 00:02:20 - Rule 2: Power of Leverage 00:04:01 - Rule 3: Balance of Cash Flow and Growth 00:05:22 - Diversifying Property Types for Cash Flow 00:06:31 - Rule 4: Know Your Numbers 00:07:12 - Importance of Detailed Financial Analysis 00:09:21 - Rule 5: Time in the Market 00:10:23 - Rule 6: Avoid Speculation 00:11:56 - Using Reliable Data Sources 00:12:20 - Rule 7: Exit Strategy Planning 00:13:32 - Rule 8: Diversification in Investments 00:14:50 - Rule 9: Utilizing the Tax System 00:16:20 - Understanding Negative Gearing and Deductions 00:17:32 - Rule 10: Building a Professional Network 00:18:20 - Choosing the Right Professionals 00:20:17 - Final Thoughts and Next Episode PreviewABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, and alongside my co-host Aaron Downie, we dive deep into the concept of equity and its pivotal role in property investment.
In this episode, we tackle one of the most frequently asked questions I encounter as a mortgage broker: "How can I purchase a property without a deposit if I'm already a homeowner?" We clarify that the answer largely depends on the equity you have in your current home. For those unfamiliar, equity is the difference between the market value of your property and the amount you owe on your mortgage. However, not all equity is usable, and we explain the distinction between total equity and usable equity.
Using a practical example, we discuss a hypothetical couple, John and Lisa, who own a property valued at $1.2 million with a mortgage of $500,000. This scenario reveals that they have $700,000 in equity, but due to lender restrictions, they can only access $460,000 as usable equity. We emphasize that pulling equity from your home is not "free money"—it’s essentially borrowing against your asset, and it comes with its own set of responsibilities.
We then explore the potential outcomes of John and Lisa's choices over a 25-year period. They can either do nothing and let their property appreciate, or they can leverage their equity to invest in additional properties. We calculate the potential growth of their investments, assuming a conservative 7% annual growth rate, and illustrate how their portfolio could grow significantly over time.
The discussion also touches on the importance of understanding the tax implications of property investment. We clarify that while capital gains tax is a consideration, the goal should be to generate income and wealth, not to avoid taxes. We encourage listeners to think about property investment as a means to increase their financial standing rather than merely a tax strategy.
Throughout the episode, we also address common misconceptions about equity, the importance of leveraging it wisely, and the potential for building a robust property portfolio. We highlight the benefits of investing in quality properties and the long-term advantages of starting early in the property market.
As we wrap up, we remind our listeners that the key to successful property investment lies in understanding equity, making informed decisions, and being patient as your investments grow over time.
Join us for this insightful discussion, and don’t forget to subscribe for more episodes where we break down complex property concepts into digestible insights!
00:00:00 - Introduction to Equity in Property Investment 00:00:11 - Understanding Equity and Usable Equity 00:01:08 - Calculating Usable Equity Example 00:02:54 - Releasing Equity: Options and Misconceptions 00:03:45 - John and Lisa's Investment Scenario 00:04:49 - Comparing Investment Strategies Over 25 Years 00:05:51 - Potential Growth of Investment Properties 00:08:01 - Total Value After 25 Years: A Summary 00:09:31 - Tax Implications of Property Investment 00:12:13 - The Importance of Income Generation 00:13:28 - Managing Debt: Good vs. Bad Debt 00:15:18 - Investment Property Loan Structures 00:18:01 - Equity Release Strategies Over Time 00:19:22 - Property Management: Quantity vs. Quality 00:20:53 - Conclusion: The Long-Term Benefits of Property InvestmentABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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The Impact of US Economic Changes on Australian Property Trends - With Rockstar Turned Real Estate Expert - Craig Rosevear
In this episode of Talk Property To Me, hosts Brad East, Aaron Downie, and Craig "Rosy" Rosevear dive deep into the evolving landscape of real estate, both in Australia and the United States. Craig shares his unique journey from being a professional musician with the Screaming Jets to becoming a successful real estate agent, highlighting how his experiences in the music industry led him to invest in property and eventually build a portfolio through home renovations and flipping.
Craig discusses his recent move to Los Angeles, where he has been setting up a real estate business in collaboration with old friends. He reflects on the differences in the real estate market between Australia and the U.S., particularly in terms of buyer behaviour and market dynamics. The conversation shifts to the current state of the U.S. real estate market, especially in light of a significant interest rate cut by the Federal Reserve—the first since the COVID pandemic. The hosts analyse the implications of this rate cut, noting that it could signal a shift in buyer confidence and market activity.
The episode also touches on the broader economic context, including concerns about the job market and consumer spending as the holiday season approaches. The hosts discuss how these factors might influence the Australian market, predicting potential interest rate cuts by the Reserve Bank of Australia in response to the U.S. changes.
Listeners gain insights into the current trends in both countries, including the movement of properties in different price brackets and the impact of renovations on property value. Craig shares anecdotes from his experiences in high-end Los Angeles properties, illustrating how the luxury market operates and the types of buyers attracted to these homes.
As the episode wraps up, the hosts emphasise the importance of being prepared for the upcoming changes in the market. They encourage potential buyers to get their finances in order and act swiftly, as the anticipated interest rate cuts could lead to increased competition in the housing market.
Join us for this engaging discussion filled with expert insights, personal stories, and valuable advice for anyone interested in navigating the real estate landscape in the coming months.
00:00:00 - Introduction and Background
Welcome back to Talk Property To Me. Introduction of hosts and Craig's background in real estate and music.
00:02:00 - Manufacturing Equity
Discussion on how renovating properties can create manufactured equity and the importance of understanding equity.
00:04:30 - Craig's Real Estate Journey
Craig shares his journey from musician to real estate agent and how he built a portfolio through flipping homes.
00:06:30 - Real Estate in the U.S.
Craig discusses his experiences setting up a real estate business in Los Angeles and the differences in the market.
00:08:30 - Impact of U.S. Rate Cuts on Australia
Analysis of the recent interest rate cut in the U.S. and its potential effects on the Australian market.
00:10:30 - Market Dynamics and Buyer Behaviour
Discussion on buyer behaviour in the U.S. market, including the impact of locked-in mortgage rates.
00:12:30 - Property Sales Trends
Insights into which price segments are moving quickly in the U.S. real estate market.
00:14:30 - Predictions for Interest Rates
Predictions on interest rate movements in both the U.S. and Australia, and their implications for buyers.
00:16:30 - Preparing for Market Changes
Advice for potential buyers on getting pre-approved and being ready to act in a changing market.
00:18:30 - Demographic Trends in Real Estate
Comparison of ageing populations and property turnover in Los Angeles versus Australia.
00:25:00 - Conclusion and Future Outlook
Wrap-up of the discussion with predictions for the property market in the coming years.
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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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The Truth About Off-Market Properties and Valuation Shortfalls
Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive deep into the intricate world of property valuations, a crucial aspect for anyone looking to buy, sell, or invest in real estate.
We kick off the discussion by introducing the various types of property valuations that lenders utilize. From Automated Valuation Models (AVMs) to desktop and curbside valuations, we break down how each method works and the implications they have on property value assessments. We highlight the importance of understanding these methodologies, especially when it comes to pulling equity for investment purposes.
One of the key points we address is the difference between a property's market value and its purchase price. We emphasize that lenders often rely on third-party valuers to mitigate the emotional biases that can lead buyers to overspend. This leads us into a discussion about the subjective nature of property value, where we explore how personal circumstances can justify higher prices for certain buyers.
As we navigate through the episode, we touch on the common pitfalls in property valuations, particularly when it comes to off-the-plan purchases. We share insights on how relying solely on real estate agents' guide prices and median prices can lead to overvaluation and disappointment. We stress the importance of conducting thorough research and performing a comparative market analysis to arrive at a realistic property value.
We also delve into the role of buyer's agents and the concept of off-market properties. While off-market opportunities can be appealing, we discuss the nuances of the current market, particularly in Newcastle, and whether these properties truly offer better value or simply serve as a sales tactic.
Throughout the episode, we provide practical tips for listeners on how to approach property valuations. We encourage them to attend open homes, observe market trends, and understand the significance of inventory rates and days on the market.
In closing, we reiterate the importance of being well-informed and cautious when it comes to property valuations. We remind our audience that while market value is often what someone is willing to pay, it’s essential to justify any significant deviations from the median price in the area.
Join us for this insightful discussion, and don't forget to check out our website at talkpropertytome.com.au for more episodes and resources. Thank you for tuning in, and we look forward to having you with us next time!
00:00:00 - Introduction to Property Valuations 00:01:06 - Types of Valuations Used by Banks 00:02:22 - Understanding Automated Valuation Models (AVMs) 00:03:55 - Different Valuation Methods Explained 00:04:40 - Valuation vs. Purchase Price 00:05:30 - Subjective vs. Market Value 00:07:30 - Key Elements Influencing Property Valuation 00:09:18 - Comparative Market Analysis 00:10:20 - The Role of Real Estate Agents in Valuation 00:11:03 - Shortfalls in Valuations 00:12:30 - Common Pitfalls in Property Valuation 00:13:41 - Guide Prices and Anchoring Techniques 00:15:21 - Limitations of Online Valuation Tools 00:16:50 - Future of Property Valuation with AI 00:18:09 - Challenges in Unique Property Valuations 00:19:29 - Off-Market Properties: Pros and Cons 00:21:14 - The Role of Buyer’s Agents in Off-Market Deals 00:23:40 - Accessing Off-Market Opportunities 00:25:46 - Recap on Property Valuation Considerations 00:28:00 - Manipulating Valuations: Ethical Considerations 00:29:27 - Conclusion and Final ThoughtsABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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In this episode of "Talk Property To Me," Aaron had the pleasure of speaking with Sam Taylor, a former primary school teacher turned successful real estate agent. Sam shared his unique journey into the real estate industry, which began in 2018 after he developed a passion for property while helping his wife purchase their first home. He candidly discussed the challenges he faced in his early years, emphasising the importance of building a strong track record and the role of social proof in gaining client trust.
Sam's background in teaching has significantly influenced his approach to real estate. He believes that the trust associated with being an educator sets him apart in a field often plagued by negative stereotypes. He highlighted the importance of communication and relationship-building, which he honed during his teaching career, as key components of his success in real estate.
Throughout our conversation, Sam reflected on his most memorable sales, including his first sale of a block of land, which he secured through door knocking. He humorously recounted the challenges of prospecting and how he built a network of referrals by genuinely connecting with clients rather than relying on traditional cold-calling methods.
We also delved into current market trends, with Sam noting a recent flat spot in the market due to low stock levels and uncertainty around financing. He discussed how the market has evolved post-COVID and the impact of interest rates on buyer sentiment. Sam pointed out that while many buyers are concerned about overpaying for properties, long-term investment strategies remain crucial for success in real estate.
As we explored the dynamics between different buyer demographics, Sam shared insights on how first-time buyers and investors can differentiate themselves in a competitive market, particularly against downsizers who often prioritise lifestyle over price. He emphasised the importance of understanding the motivations behind buyers' decisions and how that can influence market trends.
Towards the end of our discussion, we touched on the future of the real estate industry, particularly the shift towards more independent business models like UrbanX, which supports agents with backend services. Sam shared his vision for his own business, focusing on mentorship and fostering a positive culture within his team.
This episode is packed with valuable insights for anyone interested in real estate, whether you're a buyer, investor, or aspiring agent. Sam's journey and perspective offer a refreshing take on the industry, highlighting the importance of relationships, community involvement, and a long-term mindset in achieving success.
00:00:00 - Introduction and Guest BackgroundWelcome back to Talk Property To Me with Aaron Downie and special guest Sam Taylor discussing his journey from teaching to real estate.
00:01:00 - Transition from Teaching to Real EstateSam shares his background as a primary school teacher and how his interest in real estate developed.
00:02:00 - Challenges in Early CareerDiscussion on the challenges faced in the first few years of real estate and the importance of building a track record.
00:03:00 - Setting Achievable GoalsSam talks about his goal-setting approach and the significance of being content in his new career.
00:04:00 - Trust and Background in Real EstateExploring how Sam's teaching background contributes to trust in his real estate practice.
00:05:00 - Memorable Sales ExperiencesSam reflects on his most memorable sale, including the importance of building relationships with clients.
00:06:00 - Prospecting PhilosophyDiscussion on Sam's philosophy of client service over traditional prospecting methods.
00:08:00 - Market Trends and ObservationsSam shares insights on current market trends and the impact of stock levels and buyer sentiment.
00:10:00 - Impact of COVID and Interest RatesExploring how COVID-19 and interest rate changes have influenced the real estate market.
00:12:00 - Buyer Behavior and Market SentimentDiscussion on how buyer behaviour has shifted from fear of missing out to fear of overpaying.
00:14:00 - Long-Term Investment PerspectiveSam emphasises the importance of long-term thinking in real estate investments.
00:16:00 - Demographics and Buyer MotivationsExploring how different demographics influence buyer motivations and decisions.
00:18:00 - Downsizing TrendsDiscussion on the trend of downsizing and its impact on the real estate market.
00:20:00 - Cash Buyers and Market StabilitySam talks about the influence of cash buyers on market stability despite economic fluctuations.
00:22:00 - Investor Strategies in Current MarketInsights into what investors are looking for in the current market and how they are adapting.
00:24:00 - Market Data and TrendsSam analyses market data and trends over the past decade in Newcastle and Lake Macquarie.
00:27:00 - Gentrification and Suburb ChangesDiscussion on the gentrification of suburbs and how perceptions of areas have changed.
00:30:00 - Future of Real Estate Business ModelsSam shares thoughts on the evolution of real estate business models and the role of UrbanX.
00:32:00 - Advice for New AgentsSam provides valuable advice for new agents and those looking to start their own brand.
00:34:00 - Importance of Mentorship and CultureDiscussion on the significance of mentorship and maintaining a positive office culture.
00:37:00 - Volume and Experience in Real EstateSam emphasises the importance of transaction volume for skill development in real estate.
00:39:00 - Conclusion and Final ThoughtsWrap-up of the discussion with key takeaways and appreciation for the insights shared.
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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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In this episode of Talk Property To Me, we delved into the current state of the economy with the help of Joel Griffiths, an experienced accountant from Leenane Templeton. Joel, with nearly 25 years in the industry, provided valuable insights into the economic landscape and the impact of government spending on various sectors.
The discussion revolved around the recent inflation figures, disposable income, and productivity trends. We explored the question of whether the economy is in a recession, potentially masked by government spending, and the implications of further rate increases.
Joel highlighted the role of government spending in driving economic growth, particularly in the context of the upcoming election. We analysed the impact of high interest rates on rent prices and the challenges faced by households in managing utility costs amidst inflation.
The conversation also touched upon the disparity in household disposable income per capita compared to other OECD countries, indicating the strain on Australian households. We discussed the potential consequences of monetary policy on households and the need for a balanced approach to fiscal measures.
The podcast hosts also examined the predictions surrounding future rate increases and the dynamics of fixed rates in the market. They emphasised the importance of assessing individual financial situations and exploring refinancing options in the current economic climate.
Furthermore, the discussion extended to the retail sector, personal finance trends, and the implications of high assessment rates on borrowers. The hosts highlighted the significance of proactive financial management and the potential impact of government spending on the economy's long-term sustainability.
Overall, the episode shed light on the complex interplay between government policies, economic indicators, and individual financial decisions in shaping the current economic landscape. Joel's expertise provided valuable insights into navigating the challenges and opportunities in the evolving economic environment.
00:00:00 - Introduction and Background 00:05:30 - Government Spending and Economic Impact 00:10:00 - Interest Rates and Market Predictions 00:15:00 - Retail Sector and Household Finances 00:17:30 - Assessment Rates and Lender Strategies 00:20:00 - Government Spending for Election PurposesABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property To Me! In this episode, my co-host Aaron Downey and I delve into the crucial aspects of property selection for first-time investors. We build upon our previous discussion on finance and now focus on the key considerations when choosing the right property.
We kick off the episode by emphasizing the importance of location. We highlight the common mistake of investing in familiar areas without considering diversification. We stress the need to conduct thorough market research, considering factors like proximity to reputable schools, public transport accessibility, and amenities.
Moving on to property types, we differentiate between residential and commercial properties. While commercial properties offer high returns, they require larger deposits and active leases, making them less suitable for first-time investors. We emphasize the significance of choosing the right property type based on investment goals and strategies.
The discussion then shifts to the long-term outlook of the chosen property. We explore how economic trends, development projects, and scarcity can impact property values and rental returns. We stress the importance of considering owner-occupied appeal and scarcity to attract tenants and maximize investment returns.
Lastly, we touch on the importance of staying updated with market trends and seeking professional advice when needed. We encourage listeners to educate themselves and consider reaching out to experts like Aaron for guidance in making informed property investment decisions.
Overall, this episode provides valuable insights into the intricate process of property selection, guiding first-time investors towards making sound investment choices. Tune in to our website for more episodes and resources to enhance your property investment journey. Thank you for listening, and we look forward to sharing more insights in our next episode!
00:00:00 - Introduction to Property Selection 00:05:30 - Importance of Location in Property Selection 00:10:50 - Conducting Market Research for Property Selection 00:12:58 - Choosing the Right Property Type 00:16:44 - Considering Long-Term Outlook for Property Selection 00:22:14 - Scarcity and Owner-Occupied Appeal in Property Selection 00:25:43 - Staying Updated in Property SelectionABOUT 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
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/
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Welcome back to another episode of Talk Property to Me! In this episode, my co-host Aaron Downey and I dive into the world of first-time property investors in Australia, focusing specifically on the finance aspect. This episode is part one of a two-part series, with the next episode delving into the property side of things.
We kick off the episode by discussing the crucial question of how much deposit is needed for first-time property investors. We explore the concept of lenders mortgage insurance (LMI) and its impact on deposit requirements. We also touch on the option of using a guarantor to increase the deposit amount and avoid LMI.
Moving on, we delve into government schemes available for first-time homebuyers in Australia, particularly in New South Wales. We highlight schemes like the first home loan deposit scheme and stamp duty exemptions, emphasising the eligibility criteria and benefits for first-time buyers.
Next, we shift our focus to understanding how banks assess borrowing capacity for potential property investors. We break down the calculation process, including net income, living expenses, and loan repayments. We stress the importance of managing existing debts like credit cards to improve borrowing capacity.
In a thought-provoking segment, we discuss the strategy of rent vesting for individuals who cannot afford to buy property in their desired location. We explore the concept of investing in more affordable markets while renting in a preferred area, highlighting the potential benefits and considerations for this strategy.
Wrapping up the episode, we touch on the significance of financial discipline and strategic planning for aspiring property investors. We emphasise the need to assess individual financial situations, explore alternative options, and make informed decisions to achieve property ownership goals.
Join us next week for part two of our series, where we will delve into the property side of first-time property investment in Australia. Stay tuned for more insights, tips, and advice on navigating the property market as a first-time investor.
Thank you for tuning in to Talk Property to Me! Remember to connect with us on our social media platforms and reach out with any questions or topics you'd like us to cover in future episodes. See you next time!
00:00:02 - Introduction to Finance Tips for First Time Property Investors
00:02:12 - Explanation of Lenders Mortgage Insurance (LMI)
00:03:29 - Tips for Saving a Deposit
00:08:55 - Overview of Government Schemes for First Home Buyers
00:11:30 - How Banks Assess Borrowing Capacity
00:16:13 - Impact of Credit Cards on Borrowing Capacity
00:18:49 - Considerations Before Buying Property When Planning for Kids
00:21:47 - Introduction to Rent Vesting Strategy
00:25:25 - Conclusion and Preview of Part Two
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
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Welcome back to Talk Property to Me! In this episode, my co-host Brad East and I delve into the predicted growth areas in each state in the sub-800k market segment. We use an algorithm that considers historical data, infrastructure spending, supply and demand metrics, quality of schools, and socioeconomic factors to identify these high-growth areas.
We start by discussing the importance of school quality in property investment decisions, sharing personal experiences of how it influenced our own property choices. We emphasize the significance of analyzing sub-markets and understanding the demographics and preferences of potential buyers or renters in different price points.
Moving on to specific states, we highlight the Barossa Valley in South Australia and Maitland in New South Wales as promising areas for future growth due to their affordability, stable rental increases, and favorable market metrics. In Queensland, Ipswich and Breland Point stand out as potential high-growth areas, while in Victoria, Melton and Brimbank are identified as key locations to watch.
We caution against investing in areas with limited data or high days on the market, such as Zuccoli in the Northern Territory. In Western Australia, Cockburn emerges as a potential investment hotspot due to its coastal location and affordability, despite concerns about long-term growth sustainability.
Throughout the episode, we stress the importance of thorough research and due diligence when selecting investment properties, advising listeners to focus on location, lifestyle amenities, and market demand. We conclude by encouraging listeners to invest where people want to live, rather than solely focusing on tax benefits or short-term gains.
Join us on the next episode of Talk Property to Me as we continue to explore the dynamic world of property investment and share valuable insights to help you make informed decisions in the real estate market. Thank you for tuning in!
00:00:00 - Introduction to Predicted Growth Areas 00:05:30 - Discussion on Barossa Valley in South Australia 00:10:54 - Analysis of Ipswich in Greater Brisbane, Queensland 00:13:38 - Focus on Melton in Greater Melbourne, Victoria 00:14:11 - Exploration of Horsham in Regional Victoria 00:16:37 - Examination of Cockburn in Perth, Western Australia 00:19:20 - Mention of Palmerston in Darwin, Northern Territory 00:21:45 - Emphasis on Lifestyle Locations for Investment OpportunitiesABOUT 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
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In this episode of Talk Property To Me, I had the pleasure of speaking with Cameron from Waterford Financial Planners about self-managed super funds (SMSFs). We delved into the intricacies of setting up and managing an SMSF, exploring the differences between SMSFs and industry funds, the advantages of leveraging assets within an SMSF, and the various investment options available.
Cameron highlighted the importance of seeking independent advice and avoiding one-stop-shop solutions that may lead to potential conflicts of interest. We discussed real-life examples of successful SMSFs as well as cautionary tales of SMSFs gone wrong, emphasising the need for careful planning and due diligence.
Throughout the episode, we covered key topics such as the setup process, compliance requirements, tax implications, and considerations for retirement planning within an SMSF. Cameron provided valuable insights into the complexities of SMSF lending, the importance of proper structuring, and the potential pitfalls to avoid.
We concluded by stressing the significance of conservative investment strategies, the minimum fund size for SMSF lending, and the importance of seeking professional advice when navigating the world of self-managed super funds.
Listeners were encouraged to reach out to Cameron at Waterford Financial Services for personalised advice and assistance with their SMSF queries. Whether seeking clarification on SMSF setup or evaluating the effectiveness of an existing SMSF structure, Cameron and his team are ready to provide expert guidance and support.
Tune in to this episode for a comprehensive overview of self-managed super funds, packed with practical insights and expert advice to help you make informed decisions about your retirement savings.
00:00:01 - Introduction to Self-Managed Super Funds
00:05:17 - Steps to Set Up a Self-Managed Super Fund
00:10:02 - Limited Recourse Borrowing Arrangement
00:11:05 - Compliance and Audits for Self-Managed Super Funds
00:12:39 - Taxation in Self-Managed Super Funds
00:13:53 - Retirement Options and Pension Phase
00:15:49 - Real-Life Examples of Successful Self-Managed Super Funds
00:18:20 - Importance of Independent Advice in Self-Managed Super Funds
00:21:46 - Considerations for Separation or Death in Self-Managed Super Funds
00:22:30 - Minimum Fund Size for Self-Managed Super Fund Lending
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
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In this episode of Talk Property To Me, real estate expert Aaron Downie joins Brad East to unpack the nuances of investing in houses versus apartments. As an experienced investor with a keen eye for market dynamics, Aaron offers practical insights on the hotly debated topic of real estate investing.
Discover the key factors to consider when choosing between houses and apartments, such as location, market trends, rental yields, and long-term appreciation potential. Learn from real-world examples and expert analysis to find the investment strategy that works best for you.
Whether you’re a seasoned investor or just starting, this video will provide valuable tips and strategies to enhance your portfolio. Don't miss out on the opportunity to gain a deeper understanding of the real estate market and maximize your returns.
Join our exclusive Facebook group for ongoing support and expert advice on Australian finance and real estate. → https://www.facebook.com/groups/talkpropertytome
Follow our podcast instagram here → https://www.instagram.com/talkpropertytomepodcast/
Subscribe to our channel for more expert advice on real estate investing, market trends, and financial growth strategies. Hit the notification bell so you never miss an update!
Timestamped summary of this episode:
00:00:13 Debunking the Myth: Houses vs. Apartments as Investments
Exploring the misconception of only buying houses as an investment strategy, highlighting the importance of market analysis and investment strategy in property investment.
00:01:55 Pros and Cons of Apartments vs. Houses
Discussing the affordability and lower entry price of apartments, maintenance considerations, rental yield, amenities, and capital growth in comparison to houses.
00:04:23 Considerations for Apartment Investment
Exploring factors like body corporate fees, maintenance costs, and historical capital growth rates in apartments, while considering future trends and market dynamics.
00:06:21 Size and Investment Potential of Apartments
Examining the size differences between apartments and houses, and showcasing a successful investment case of a large apartment with significant returns.
00:07:38 Advantages of Houses as Investments
Highlighting the capital growth, land ownership, space, privacy, and maintenance costs associated with investing in houses over apartments.
00:09:39 Luxury Amenities in Property Buildings
Discussion on the cost and benefits of properties with luxury amenities like teppanyaki bars and cinemas for renters and owners.
00:11:14 Best Performing Suburbs in Australia
Analysis of the highest performing suburbs in Australia over the past twelve months, with significant growth rates in Gumdale, Ellen Grove, Keilor East, and Rosebud.
00:13:45 Top Growth in Apartment Suburbs
Highlighting the substantial growth in apartment suburbs like Tennyson, Grange in Brisbane, and Doncaster East in Melbourne, with impressive annual growth rates.
00:15:43 Worst Performing Suburbs
Exploring the decline in suburbs like O'Connor and Wannan in Canberra for houses, and Forrest in Canberra, East Lakes in Sydney, and Macquarie Park for apartments over the last twelve months.
00:17:00 Decade of Growth in Suburbs
Insights into the top performing suburbs over the past ten years, showcasing significant increases in areas like Byron Bay, Bright in Victoria, Suffolk Park, and Kingscliffe.
00:19:46 Top Performing Suburbs for Apartments
Discussion on top-performing suburbs for apartments, including Jindabyne and Kings Cliff, with notable growth percentages over the years.
00:21:24 Factors Influencing Property Prices
Exploration of factors like infrastructure, population growth, and market demand affecting property prices in different suburbs.
00:22:27 Apartments as Valuable Assets
Highlighting the long-term value of apartments, emphasizing diversification and low maintenance costs as key advantages.
00:23:24 Trend of Downsizing to Apartments
Observations on the trend of downsizing to apartments, particularly by the aging population, driving demand and growth in certain Sydney suburbs.
00:24:47 Diversification in Property Investment
Encouragement for diversifying investment portfolios, considering apartments as a viable option for first-time investors.
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
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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.
Join our exclusive Facebook group for ongoing support and expert advice on Australian finance and real estate. → https://www.facebook.com/groups/talkpropertytome
Follow our podcast instagram here → https://www.instagram.com/talk_property_to_me_podcast/
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
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How Mortgage Brokers Save You Money While Banks Rip You Off
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
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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
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