Transcription
Today I announce that under a Labor government, you'll be able to buy your first home with just a 5% deposit.
This guy's an idiot because we want more Australians to buy a home of their own. We want them to do it with more debt so we can win the next election.
Migration has exploded after Labor after Albanese the idiot came in. Idiot. The Australian people are feeling the impact of Labour's immigration policy. Yes. What the hell did they expect when they start immigrating a million people here? It's the stupidest policy. This prime minister is the worst prime minister we've ever had in our country.
Cheaper mortgages. Cheaper. Cheaper. Cheaper. Cheaper. Cheaper. [laughter] Cheap.
I'm sorry. You can't buy this $600,000 home because you don't have $60,000 in savings. Nah, mate. I've just found out I can buy this home with only 14,000 bucks in the bank.
If you have only $14,000 in the bank, you shouldn't be buying a $600,000 home. I'm Lloyd James Ross, 7igure investor and entrepreneur, and I've helped thousands of business owners and professionals turn financial stress into success. If you're stuck in old money habits, overwhelmed by investing, or unsure where to start, this is for you. I'll give you the mindset and strategies to take control, grow your wealth, and achieve financial freedom. It's time to make your money work for you.
All right, now it's time for reactions, where I pull up some reels and I react. This is a lot of fun. Um, gets a lot of uh attention on social media, so I love doing it. So, let's do it. Let's not hold back. Let's let's let's react. Okay.
I'd say housing is one of the most important issues to me this election. I am trapped in renting in Sydney. Trapped in renting. You don't have to be trapped in renting. I rent. I don't feel trapped at all. Been told I would be able to buy a house in 40 years. It's pretty diabolical as far as I'm concerned.
Buying or renting a home has become unaffordable for many in Australia. Yes. And people anticipate and expect it to go up by another 40% which is ridiculous which it won't. So it'll come crashing out at some point. We don't know when. But when young people can't buy houses, it's not ideal for the uh it's not ideal for a country. And I would anticipate that the next government will be kicked out because of the policies they've put in place and you'll see a massive reduction in um demand because immigration will change and the policies around housing will change and we'll go through a different cycle. And when you got levered property, it sucks when it's going down. But it's not good for young people to have to wait 40 years to buy a house. Ridiculous. So this will change at some point. Swings and roundabouts.
The 600,000 people that had $200 million stole from them. It was the average punter in and out messy this that. It wasn't the ones that were clearcut that, you know, hey, my interest is [ __ ] $2,400 a month. It was the very messy ones. I've not seen any clean ones. And the clean ones comment on my social go, oh, it's up to you to check your accounts. It's not. You paid a [ __ ] service. You paid a fee. You paid a license.
Graeme's right. Um he's talking about banks ripping people off and they do that and there's just no regulation around the banks. Like you can't just go sue the banks. I mean they got endless pockets. The ombudsman's um a toothless tiger. Uh I think a lot of customers in banks, they're the recipient of a monopoly. And this is why monopoly is undeal. Um and so I think the banks need a lot more oversight, not more regulation. they need there needs to be more consequences for just the basic uh service to clients. Um, and I think that with the deregulation of certain online banks, they're probably going to see that, but the banks are like old tired institutions and they're just awful. So, the fact that they're ripping off customers and people losing money. Yes, you got to check your accounts, but the banks are at fault still. How they can't tap into your accounts and see if you can't afford homes instantly is ridiculous. Next one.
Remember this? Today I announced that under a Labor government you'll be able to buy your first home with just a 5% deposit.
This guy's an idiot. It's happening.
It's happening because we want more Australians to buy a home of their own and we want them to do it sooner. We want them to do it with more debt so we can win the next election. So we put out all these ridiculous schemes that don't work long term and put the Australian consumer, you know, into a deficit. These poor people buying at 5% deposit. Look at him. He's like the bloody devil. This fell. Don't like him. Needs to go. 5% deposit scheme is going to be ridiculous. All the these are bag holders. They're just going to be stuck with the debt. And when interest rates go up, they're going to get hurt. They're going to go broke. They have to sell their home. This is not really for the people. It's to win the next election. These types of Yeah. bells and whistle type things don't work. Anything the government's a part of doesn't work. So, if it's called if it's got government before scheme, avoid it.
I'm sorry. You can't buy this $600,000 home because you don't have $60,000 in savings. Nah, mate. I've just found out I can buy this home with only $14,000 bucks in the bank.
If you have only $14,000 in the bank, I don't care how many cool bells and whistles and government incentives there are out there and blah blah blah. You shouldn't be buying a $600,000 home. Just don't be a dick. Don't don't be an idiot with your money. 14,000 bucks buying a $600,000 home. That's just going to end in tears.
As a first home buyer, I'm eligible for the government's new help to buy scheme. meaning I can buy a home with only a 2% deposit. Okay, but with only a 2% deposit, that means your mortgage repayments will be through the roof.
Wrong. Again, since the government will be purchasing 30% of the property, I'll only have to be making repayments on a home loan at 68% of the home value. Meaning on this $600,000 home, I'll only have a mortgage of $48,000. But what about stamp duty? I can couple the help to buy scheme with my state's stamp duty exemption to reduce my upfront costs from 30. You know what? If you need all these bells and whistles to buy a home, you shouldn't be buying a home. Like, what a mess. How complicated. These incentives and so forth always come to bite you back as well. These government incentives, 2% deposit, like if you're borrowing 98% of your home value, you're in a lot of trouble when rates go up. So, these all these bells and whistles might seem fun and exciting until you're in a property you can't afford.
Many young Australians have lost hope of owning a home. Yep. And if they can't build a home, it's very hard to start a family.
Now, that might in part explain the collapse of our fertility rate to 1.5 births per woman, the lowest in our history. Yet, Australia is growing rapidly.
I tell you why, too, is because if both the husband and wife have to work just to afford a place to live, there's just no room in it for a mother to stay with the kids, it just disincentivies being a mom. It disincentivies having kids. And that's what they've done incidentally to because of the real estate market. It's awful.
Yet Australia is growing rapidly, but it's not because we're having more children. So what's driving our growth? The deputy speaker is net overseas migration or the norm. The norm. Now historically, the 20-year average for the normal was probably 2000 to 2019 was about 190,000 people per year. Y postable net overseas migration has exploded after Labor after Albanese the idiot came in. idiot. 446,000 people. Triple immigration. What are you stupid? What do you think's going to happen? Thousand. Pump up the property prices. Last two years, we've added nearly a million extra people to our population. Dumb. Deputy Speaker, the Australian people are feeling the impact of Labour's immigration policy. It's a stupid policy. And Australians are locked out of the housing. What did the hell did they expect when they start immigrating a million people here? It's the stupidest policy. This prime minister is the worst prime minister we've ever had in our country needs to go awful, awful, awful, awful. New policies for the citizens of the country. They're favoring people coming in more than the citizens. It's an absolute joke. Joke and they will they'll get kicked out next election. They're gone.
Just quickly, if you're ready to take control of your finances, but feel stuck on where to start, I have a solution. My book, Money Buys Happiness, simplifies investing and wealth building with practical steps to help you achieve financial peace. Get your copy via the link in the show notes and let's get your money working for you. Now, back to the episode.
Let's find out today how much you need to be earning to comfortably afford a $1.4 million property like this one in New South Wales. Breaking down the upfront cost for this property purchase, we're going to put down a 20% deposit, which means our down payment on this purchase will be around $280,000. Our stamp duty or better known as property taxes will be a whopping $59,000. And since we are putting down a 20% deposit, we don't have to pay any lenders mortgage insurance. I've estimated the settlement.
What's that? Stamp duty. Stamp duty. $59,000. What a penicious tax by the government on people. Fancy having to pay that much in stamp duty. Just damn damn damn. What a ripoff. That's a huge scam. The stamp duty stuff. Let's go back. Keep listening. This means as an upfront cost to purchase this $1.4 $.4 million property, we're going to need to have saved up around $345,000.
So, you need to buy a $1.4 million house, you do need $345,000. This is without mortgage insurance and a 20% deposit. If you took the same 345,000 and you invested it into a high yield index fund of some sort, it'll probably pull in around about 18,000 a year tax-free income to you, just so you know. So, the equity position in a home, yes, it's geared, yes, it's led against a property of 1.4 4 mil. But unless that home grows well, it's not always the best place for equity. There's other options out there that just you don't have to take on like a million bucks worth of debt. Uh and the house is crap anyway. It's only three betting. It's crap. Why would you want to live there?
We also have to factor in rates and insuranceances whenever we hold and buy a property. The interest is 5.5%. Um so you're paying 5.5% to live in a house, but if you rented it, you'd pay about 3.5% because that's what rentals you're at. So you you're making 2% extra each year in your capital by renting at the moment instead of buying. That's why I feel like renting at the moment is a more effective cash flow position than buying. And you can take that $350,000 of equity. Put it away and pay for half your rent or a lot of your rent. And that's what we do. Our portfolio pays for our rent. I just don't think renting uh buying is a better mathematical scenario right now than renting. And people often say, "Yeah, but your equity, well, you don't sell your house to your old and flipping retired anyway, so what does it matter?" I just think cash flow is more important than capital gains when it comes to real estate uh and anything for that matter. There's better places I think to put your money if you get educated.
[music] Yeah, Hong Kong. That makes sense cuz it's it's Hong Kong's a city right next to China. Makes sense that it's the most unaffordable. Sydney, look, if you're going to live in Los Angeles, San Jose, Hong Kong, these are very vibrant economies. You can become a multi multi-million. They're millionaire factories. It makes sense. But what Melbourne? Ada Adelaide. There's no Adelaide. Do they even have the internet there? What I find funny with this is you've got like Perth, Melbourne, Adelaide. Adelaide is sixth. Australia's got the like five cities in the top. That's insane. Why? I mean, I know why, but we need to flip that and change that. It is not worth 13 times earnings. We're in a huge bubble. We're in a bubble. There's a bubble. It's a bubble.
Cheaper electricity, cheaper mortgages, cheaper, cheaper, cheaper, cheaper, cheaper cheap. Labor has real lasting plans for cheaper, cheaper, cheaper. Just look, let's be frank. This bloke makes politicians, traditional politicians, look good. That's how bad he is. The policies they've put in place have made living in this country unbelievably difficult for most people, right? It's been crazy uh to see how bad the leadership has been in Australia. It just couldn't have gone worse. That's what I think. And I did a post on X the other day. I said, "Has has Anthony Albanesey's government done anything effective since he's been in power?" And no one could I I can't pinpoint anything. All they've just done is waste money. That's all they've done. I cannot think of one good thing. Uh they they're just such a a toxic uh addition to this country and I can't wait for them to if you vote Labor, you've got to have I mean you just must be brainwashed. I don't know how you can vote for the more of this. This is all you're getting is more cost, more cost, more cost. Please don't be an idiot in the next election. Don't [ __ ] this muppet back in. Unbelievable.
All right, there's the reactions of course. Um, god, there's some really brutal um, reals there that we reacted to. But there's, you know what, I think with the reactions this time, all I could do is laugh cuz it's laughable. It's a circus out there. Um, with between the banks and the political environment in Australia and the housing market is a circus. Thanks for listening to Money Grows on Trees. If you enjoyed the episode, leave a fivestar review on Apple Podcasts and Spotify and subscribe to us on YouTube so you never miss an episode. And if you're serious about building wealth, make sure to check out the links in the show notes and follow me on all social media platforms @ Lloyd James Ross for more. See you in the next