Own It - Your Property Partner

Build or Buy? The Real First-Home Buyer Guide for Millennials

• Season 2 • Episode 2

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0:00 | 49:35

Thinking about buying your first home but worried about hidden costs or builder traps?

In this episode, we chat with Brooko about what Perth millennials are facing in today’s competitive property market.

We cover:
 • Build vs Established: Brooko breaks down the real pros and cons for first-home buyers.
• Hidden Costs & Builder Red Flags: Learn how “from price” marketing, site costs, and sales tactics can catch buyers off guard.
• Smart First-Home Moves: Tips on deposits, LMI, the 5% scheme, and why borrowing smart matters more than borrowing big.

If you’re planning your first home, this episode is a must-listen. Tune in and share it with someone taking their first step into the market.

Learn more at https://localehomes.com.au/

Don’t forget to like, comment, and subscribe for more!

ABOUT BROOKO MOVES

Brooko Moves is a Perth-based content creator who documents the real journey of millennials navigating the housing market. Through honest videos and insights, she breaks down the challenges of saving for a deposit, dealing with builders, and understanding the hidden costs of buying a home in today’s market. Her content aims to educate and empower first-home buyers to make smarter property decisions.

See more from Brooko:

Instagram:https://www.instagram.com/brooko_moves 

YouTube:https://www.youtube.com/@brookomoves

            

ABOUT ADAM SCHAAL 

Adam Schaal is the Founder and Director of Locale Property Group, a leading name in Australia’s property and construction industry. With decades of experience and billions in property transactions, he’s known for his integrity, leadership, and commitment to transparent, client-focused service. Adam is passionate about helping people achieve their property goals through honesty, expertise, and long-term relationships.

See more from Adam: 

LinkedIn: https://www.linkedin.com/in/adam-schaal

Website: https://localewealth.com.au/

               https://localehomes.com.au/


ABOUT OWN IT Your Property Partner

Real stories. Real lessons. Real talk. 

Buying your first home, upgrading, or investing? It’s a big move and you don’t have to go it alone. 
 

Hosted by Adam Schaal, the founder of Locale Property Group, Own It is where we discuss property journeys, wins, mistakes, mindset shifts, and everything in between. No jargon. Just honest, empowering conversations that shed light on all things property.  

To know more about Own It Your Property Partner, you can visit the links below:

Presented by: Locale Property Group

SPEAKER_01

I didn't know about any of that before.

SPEAKER_03

It's bloody tough for first-time buyers to buy a property as a millennial. What are your expectations for your first time?

SPEAKER_01

My expectations are underground at this point. I'm thinking, what can I afford for that?

SPEAKER_03

The market's moving anywhere from $10,000 to $50,000 a month at times and not going to be able to outsave the market.

SPEAKER_01

With a savings of $50k and earning really good money weekly, what sort of house price do you think someone like this would be looking at?

SPEAKER_03

My name's Adam Shahl and I found a low-carb property group to help fix what's wrong with the housing industry after working at some of the biggest building groups. We started this podcast to share insights, real stories, help clients navigate the industry with real confidence. So today we've got uh Bruco Moves joining our podcast. So welcome Brooko. Um you uh sort of exposing what it's like to buy a property as a millennial and that you know navigating the crazy property market that there is today. Um you've accumulated over 17,000 followers on Instagram and 15,000 followers on YouTube. So crazy. So it's obviously a real thing. So welcome.

SPEAKER_01

Thank you so much for having me. Um and yeah, thanks for the support. And yeah, like when you read out those numbers, it's like, oh my god.

SPEAKER_03

It's real, it's very exciting. We made it.

SPEAKER_01

But we're going to the moon.

SPEAKER_03

So I love it. So this next segment is Where's the Lie? So you'll tell me uh two truths and a lie, and I have to navigate my way through that and uh try to find the BS. So hit me with it.

SPEAKER_01

All right. Well, I will say it was tricky narrowing it down because we've had a lot of like insane things that sound like lies, but they're actually true. So it might be a bit tricky for you, but here we go. To make some extra money towards my house deposit, I did letterbox drops of real estate flyers. Okay.

SPEAKER_03

Okay.

SPEAKER_01

Um uh another one, a real estate agent has threatened to sue us over a video.

SPEAKER_03

Okay.

SPEAKER_01

Interesting. Okay, I got a few options. We've been forced to take down two of our most watched videos because of backlash.

SPEAKER_02

Okay.

SPEAKER_01

Um, and now this is the last one, okay? Um, so I got asked to volunteer my time at a ultra-right wing conservative event where everybody else was getting paid, but they wanted me to come and do it for free for exposure. Interesting.

SPEAKER_03

I think I yeah, you can. Let's do it.

SPEAKER_01

Alright, so uh I had the real estate flyers, letterbox drops, um, takedown of two videos because of backlash, uh, real estate agent threatened to sue, and the conservative right wing event that I had to work at for free. But I didn't do it. Spoiler all that.

SPEAKER_03

Two videos you took down because of backlash, that's the lie, is my gut.

SPEAKER_01

Really? Yeah. So you think we got sued?

SPEAKER_03

I think people, yeah, people throw some the legal word out there a fair bit. Um, but uh, I believe you're very um passionate about your uh what you're doing, and I think it's great, and you're sharing your story. And um, I thought you you'd push back and not take down your videos, but I could be wrong.

SPEAKER_01

Okay, interesting. Is that your final answer?

SPEAKER_03

Um I feel like uh is this an opportunity to get out? Let's lock it in. Let's lock it in, yeah.

SPEAKER_01

All right, well, you're incorrect. Okay. Um sorry, Adam. Uh so the lie, we have not been threatened with legal action.

SPEAKER_03

Okay, okay.

SPEAKER_01

That was a lie, and the rest were true.

SPEAKER_03

That's good. Okay, well, good congratulations for not being threatened on legal action. And tough one, yeah. Uh look, I get it. Uh, when you are being real, raw, um, polarizing, sometimes you can upset people, and we've experienced that as a business. And sometimes what your intentions are and versus what how it lands to people, people get upset by that. So um I think like you said earlier, that's probably a sign that you're doing something right and you you're sort of um at least evoking conversation. Um, but yeah, it's actually to um take them down, but it is what it is, you're still doing amazing.

SPEAKER_00

Do you want to know the a little bit of the backstory, I think?

SPEAKER_03

Yeah, give me all the juicy golf, let's go.

SPEAKER_01

Okay, so one is a little bit more salacious, but I'll do the less salacious one. So basically, um we did a video at this like epic mansion in City Beach. It was awesome. And when we got there, we did Like a home open.

SPEAKER_03

Yes, yeah, nice.

SPEAKER_01

And so when we got there, we did ask for permission, we were given the green flag, and we thought, wow, we're showing how the other half-lips, you know, this is awesome. And the house was like, wow, most amazing house I've ever been into. Um, and then my partner Miles did the most incredible job of the edit, and we put out the fans were loving it. The fans were going crazy for it. Um and it did pretty well. It was like one of our best performing videos, as I said. A few weeks later, though, um the agency emailed and said, You've got to take it down. The either the sellers or the new buyers were just not happy with the video like being out there because of privacy reasons.

SPEAKER_03

Okay.

SPEAKER_01

So that was a bit of a bummer.

SPEAKER_03

Bugger.

SPEAKER_01

And then the other one, you're right, you don't want to know why we had to take yellow.

SPEAKER_03

Two culture, a bit spicy. Yeah, yeah.

SPEAKER_01

It's kind of like on the in the theme of what we were talking about before we started recording, if you know what I'm saying.

SPEAKER_03

So I knew we'll move past that one. But yeah, good job. You're you're making a lot of noise, and um to gather that many followers in such a short period of time, it's real. Like the pressures right now for people getting into a property is is like it's crazy. And um, like we're saying earlier, um just I can't it's blowing my mind how fast the property prices uh are moving, and especially monthly. Yeah. And people are like, we're doing now a package in this area for this price. I'm like, wow, that's moved like 30, 40 grand in a month. So it's it's wild. So the pressures are real.

SPEAKER_01

It's really it's honestly, I'm laughing, but inside deeply depressed. Yes. Because yeah, I'm obviously tracking prices every day. I'm thinking, what can I afford today? Every day it gets more grim. And I feel like, yeah, 50 grand on top of a price in a fortnight. I can't, I wouldn't even be surprised by that now.

SPEAKER_03

No, and it and that has happened. It's crazy. And none of us actually saw it coming as well. Um, you know, we we anticipated, we anticipated some growth. Yeah.

SPEAKER_00

But it's like some people claim they knew that it was gonna get this bad, and you think, I don't know about that.

SPEAKER_03

I think everyone in the industry I speak to is a little bit shocked. Um, it's it's hot, so we knew it was gonna be hot. But like we said, we've seen some blocks in some areas um that were purchased uh probably October, November last year, and they've now released uh the same sort of lots uh like a couple of weeks ago. They've gone up 100 grand. Yeah, and that's from 370 to like 480. So it's not like the percentage of change on that on that purchase is just bloody madness. I've never seen anything like that in my career in 15 years. So no, I've seen 20, 30, 40 grand jumps over a six-month period, but that fast, like that. Literally, that was like two releases and they jumped it up like 100 grand.

SPEAKER_01

And that's just the land as well. Correct.

SPEAKER_03

And the builds moving as well, because the obviously the supply chain pressures and the build prices are increasing. So yeah, it's it's bloody tough for um for first home buyers, but it's still achievable, but it's you definitely don't get what you use.

SPEAKER_01

I'll tell you what, it's great content.

SPEAKER_03

Yep.

SPEAKER_01

Um, but as a first home buyer, not good at all. But anyway, yes, we'll get there one day.

SPEAKER_03

We you will 100%. So the next segment is building without the bullshit. So let's get into some of the comments we see on Reddit and social media um about people trying to get into a home and let's see if we can unpack some things and educate some people.

SPEAKER_01

All right, so here we go. Here's the first one.

SPEAKER_03

Yep.

SPEAKER_01

I'm so ready to move out and have my own home, but I can't decide if buying established or house and land packages are better. I'm 20 years old with around 50k saved up with a full-time job in which I earn $1,400 a week. That's pretty good. I don't mind living with my parents for a little longer if I have to build. I would prefer to be in a good neighborhood. I don't care for size, and to be honest, I would prefer a smaller house or even a townhouse. Any help slash advice?

SPEAKER_03

Cool. That's a bit to unpack there.

SPEAKER_01

Let me uh killing it. 20 years old, 50k saved, earning 1400 a week.

SPEAKER_03

I know, it's amazing. They're doing really, really well to be able to save that much money. And uh I'm not sure if that's income is gross or net. Um so we'd have to work through that and um probably sit down with a finance broker and see what their actual borrowing capacity is. Whether you buy established or build, look, both options are great. It depends on what they're trying to achieve. Um often you can probably get into the market a little bit lower uh when you're you're when you're building from a price point uh perspective, unless you go out and buy a small unit or something like that in an area. So um, yeah, it's it definitely comes down to what their borrowing capacity is. Um I encourage anyone to pretty much start as soon as they physically can. The fact that they're looking to get in at 20 is really, really great. Obviously, got a really good head on their on their shoulders. I think it's really important someone that young not to overcommit and get like a really big mortgage and try to get their dream home right away. Um, it's it's kind of nice to go in with the mindset that it can be a stepping stone. Your first home's not gonna be if you're ever home, and you've got to kind of try to take some of the emotion out of it and go, I just need to get into the market because the market is moving. And you've got to kind of look at the property market as a long-term view. Like get in, sit in it, maybe enjoy it, add a little bit of value to it, or build a property that gets a little bit of equity in it, and then use that as a, I guess, a vehicle to then jump into your next property. I don't think there's many people out there that have bought their forever home for their first home unless they're very privileged. So um I think that's a really important mindset that people need to be in. Um established versus buying a sort of building. Building offers a lot of value right now. Um, obviously it depends on which areas you want to live in. Um, but established is just absolutely wild, which you've experienced. And people are having to bid 10, 20% above the perceived asking price. Um, and you're often competing with people at a cash because there's a lot of investors right now. So you would have experienced this firsthand. Um, where building, you get a little bit more control. Um it's still super competitive with land, but they will support first-term buyers in your estates because the majority of the estates are first-time buyers, um, or a big portion of them are first-term buyers. You can control the cost because you know what the land cost is going to be, you know what the bill cost is going to be, and you're essentially getting into an area before it's completely developed. So we've seen some of our clients get into homes and um by the time they're sort of about to hand over their keys, they've got anywhere from $150,000 to $250,000 in equity, which is really great. They may have compromised on the area that they wanted to live in. Um, they probably wanted to live in an inner city area originally, but they've moved out a little bit further. They've got into the market, and then that gives them ability to go, am I going to sell this down? And then buy another property in another area. Um, or they just might love the area that they're in because they're surrounded by like-minded people with that are the same age as them. So um it definitely comes down to personal circumstances. But my opinion is um they're doing a really great job saving so much money in a short period of time, and they should get into the market as soon as they physically can.

SPEAKER_01

Can I ask a question of this person?

SPEAKER_03

Yeah.

SPEAKER_01

By the way, if this person's out there, can you message me and tell me what you do for work because I want in. Um, but I guess with the savings of 50K and earning really good money weekly, what sort of house price do you think someone like this would be looking at?

SPEAKER_03

Look, it depends. Uh in this day and age, you almost need to be over 100k to get into a house. So they're actually falling short, um, which is tough, which is crazy. Um, but we encourage people to again start small, um, but there's also options with guantors. So there's an option for them to do it with a family member. We've seen people go in like siblings, or they do it with their parents. Um essentially it's just really important they get into the market as soon as physically possible.

SPEAKER_02

Yeah.

SPEAKER_03

Because they're in the market, they're already getting some equity through that property. Um, and as we get older and mature and get better in our careers, our salaries usually increase over time as well. That's just a natural progression on how we work. So if you're in the market, you've got an anchor and you've got some equity building, and slowly your income is increasing over a period of time, you're kind of not um missing the market as it's growing. And it's almost near an you would know this, it's impossible to outsave the market. Um, it's yeah, we we've seen clients that we're like, we're gonna sit out, we're gonna get more savings, we don't want to pay lenders' mortgage insurance or something along those lines. But it's like the market's moving anywhere from $10,000 to $50,000 a month at times, and you're not gonna be able to outsave the market. So if they have the capability to get in, be strategic and buy the right property uh based on what they're trying to achieve, but just get in as soon as you physically can.

SPEAKER_01

Yeah. Great.

SPEAKER_03

Would you agree with that advice?

SPEAKER_01

Um, well, I'm not an expert.

SPEAKER_03

Yeah, yeah. Well, you've experienced it firsthand. Yeah, yeah.

SPEAKER_01

I think it's easy to say get in ASAP, but then you also said it has to be a strategic choice.

SPEAKER_00

Correct.

SPEAKER_01

Because you don't want to overpay for something that's really just gonna bleed you dry at the end of the day. So yeah, but I mean, this person's doing so well. I mean, it's giving SmartyPants vibes, I'm sure they can work it out.

SPEAKER_03

100%, 100%.

SPEAKER_01

Question number two. Hi, everyone. My partner and I are first home buyers. We are currently in the stage where we are deciding if we want to build or not. We've been in contact with a few different builder brokers who assist with the building and land packages and as well as the finance process. Our budget is around 650 to 750k. We currently have over 5% of that in savings for a deposit. We are aiming to get at least 10 to 12% for the deposit. We are aware we will get stung with LMI, but uh still, but unfortunately, it is what it is. Can anyone here give me some advice regarding things that they did when they built their homes in Perth? What to avoid and be aware of? Good questions to be discussing with the brokers so we potentially don't get screwed over. Tips and tricks that went well for you your first time.

SPEAKER_03

Nice. Um, also in a really good position, the fact that they've saved uh over a 5% deposit. So that's really, really cool. I think they raised a good point with lender's mortgage insurance, which is an insurance that essentially protects um the bank, it doesn't protect you as a buyer. Um, and it is really frustrating to pay because it could be anywhere from you know $15,000 to $30,000 that you're basically getting whacked with. Um but again, if they have a if they found a property they like and they're in a position to do so, and they have to pay lender's mortgage insurance, it's like it's kind of just a vehicle for you to be able to get into that property. Because as you know, $30,000 goes pretty quick in this market. So you have got the capability you found the right property. I wouldn't worry too much about the lender's mortgage insurance. There's also tools like the 5% deposit scheme, um, which allows people to uh buy a property with 5%, which they have, and the government underwrites a lender's mortgage insurance. So that was a stimulus that the government's released recently, which is probably what's caused a lot of this growth in the market and a lot of the price escalations. Um that is a vehicle for them to be able to get in. And also Keystart, um, it's a really, really great product. It's helped many West Uzsies get into the market. You're only a 2% deposit. There's no lender's mortgage insurance, which is incredible. Um, can save you anywhere from 20 to 30 grand. Um, the you can pay a minimum repayment per construction as well. So while you're paying rent, um, you can also pay a minimum of $400 per month. Um, so you're not having to pay rent and a full mortgage during construction. Um, the negative for them, um, sometimes the interest rate's a little bit higher. But what you save in lenders' mortgage insurance, by the time you built your home, often you have a bit of equity, you can then refinance out of Keystart and you can then go into another lender, conventional lender with lower interest rates. So again, another really good vehicle. Um you mentioned uh things that they need to look out for uh to not get screwed over. I think it's really important to have a really good finance broker in your corner, um, because you can go into the industry and get told, yep, you're all good, let's sign you up. And people just sign them up on a hope and a prayer that they're going to get their finance in check. I think it's really important you've got someone in your corner that knows everything about your situation of dot of the I's cross the T's. Um, because you I don't think it could be any um harder or a bigger blow than you committing to something and then it doesn't come through. It's pretty devastating. Next would be don't fall for all the um the promises out there in the industry. There's you know really beautiful ritzy display homes that look incredible and home designs from X price, and there's a lot of marketing tactics out there to make things look probably better than what they are. They advertise house and land packages at a really low price point, but they might now include floor coverings, blinds, landscaping, letterboxes, air conditioning. Um often they take the first-time buyer's grant off the price as well. So you're like, oh my god, this is such a cheap property, but it's not necessarily when you start looking at the detail.

SPEAKER_01

So they're not laws against us.

SPEAKER_03

Well, technically it's a house, uh, but it's uh they do to put disclaimers in there saying terms of conditions apply, and this is how the first time buyer grant's taken off that. It is a hundred percent. So you've got to be cautious on not looking for the cheapest price. You've got to look for, you know, someone that's done a great job for a period of time and have got really good reviews and um tell you what you need to hear, not what you want to hear, because it's very easy for us to fall into the trap of that looks really exciting and really cheap, and there's a there's something who looks too good to be true, but often it isn't in this market, let's be honest. Um, so making sure you get people that tell you really raw, transparent information. Um and not overcapitalizing as well. It's when you're building your own home, um, there's a lot of positives, there's negatives, obviously you've got to wait for the home, but the positives are you can sort of curate the home to however you want it to be. But that can be a slippery slope as well, because people can start falling, getting really emotionally invested in it and probably overcapitalizing, spending too much, where it's like we really encourage people just to make the home beautiful, make it your own, but don't overcommit because I don't want someone to get a home and then feel like they've got a noose around their neck. It's like this the home's gonna look beautiful as it is. Um, so don't uh don't overcapitalize. We also recommend uh try and use a base plan from a building company. Um everyone wants a custom home. Yeah, but the way you're gonna get the maximum bang for buck um out of building a home is trying to get one off the shelf because they've built that home many times before, they've optimized it as much as they can, and it's generally the cheapest price. How builders make money is variations. So the base might have a certain margin, but as soon as they make changes to the home, that's at a higher margin. So they make more money through that through that process. Um, so I'd encourage, try to keep it as simple as physically possible. Make some tweaks to make it your own, like upgrade your ensuite, maybe dress up your kitchen, make the facade nice, high ceilings, things like that. Um, but try to find a builder that's got majority of the inclusions as standard, and you've got to make as little changes as possible because you're gonna get the best bang for buck.

SPEAKER_01

That's awesome advice. I've never heard all that before. So I feel like I'm learning things as well as this person who's really.

SPEAKER_03

Love it.

SPEAKER_01

So you're a wealth of knowledge.

SPEAKER_03

Q. Have you ever explored building a home yourself? And have you experienced any of these situations, these clients been through?

SPEAKER_01

Well, I tell you what, I have almost been sucked in by is those really cheap house and land packages because my Facebook ads are filled with these.

SPEAKER_00

You're on the algorithm.

SPEAKER_01

Oh, and I have gone down the rabbit hole too many times to count. I'd be embarrassed if I had to add it up. And I'm always thinking, oh, I could afford this, I could afford this. But I didn't realise that these homes are often built with no flooring or no, you know, things that you actually need to be able to actually live in it.

SPEAKER_02

Yep.

SPEAKER_01

So this is why it's really good that you and I are chatting, because I would very quickly become a victim of that, um, overcommit, end up spending way more than what it's advertised for, and then end up even more depressed than I already am. For sure. So this is really good. Um, but in terms of people telling me what I want to hear from brokers and agents, and oh my god, it's pretty that's pretty much my entire existence just about, you know, like people um message me every day just about, claiming to be the latest and greatest hotshot who's gonna be the one that solves all of my problems and they're different from the rest because of X, Y, Z reason and they want to be the one to get me in somewhere. Nice. And I'm like, I just feel like it's all a bit wanky, really. And I think the biggest thing that I've learned is to if someone's really, really, really trying to push you towards something, that is probably the biggest red flag. And I actually that pushes me further away because if someone's chill and someone someone is really confident in what they're offering you, then they're not going to be needed to use these high pressure tactics.

SPEAKER_03

High core sales tactics, 100%. It's about providing options, providing painting context, um, sharing real and raw information and then giving you options to make a choice.

SPEAKER_01

Exactly.

SPEAKER_03

Uh, if you believe in what you do and believe in your service you do, it's like, yeah, we'd love to help you, but this is these are the this is the reality.

SPEAKER_01

Exactly. Hi all. With the housing market going absolutely ballistic over the last few years, it seems the only good time to buy or build is ASAP. With this in mind, I'm looking to build a home within one of Perth's outer suburbs. I noticed that there are many building companies which offer home and land packages, which has an all-inclusive price of the home and land and site works, etc. My question is, would it be better to go with these companies that provide these services? Or should I look to buy a piece of land first, then get quotes from various different builders for the build? What is the difference between the two? Do builders make significant profit from the house and land package as compared to just a home package? Also, what other things should I be wary of with the current building market, especially with the current builders looking to hear about good and bad experiences?

SPEAKER_03

That's a really good question. Um, it depends on circumstances, uh, whether you should get the land first or buys a house and land package. And it's very climate based. It's really, really hard to find a piece of land right now. It's like near on impossible. And we've had some clients here miss out on six releases in a row. Um, just trying to get a block of land because they're competing with people with cash unconditional offers and it's very similar to the established market. So uh I encourage people to go out and find their own land 100%. Uh we don't want to control the process. If they'd rather do that than talk to us about comparing multiple builders, great. You won't be paying more through that builder to get a house and land package. So all they're doing is offering a service to be able to find you the block. Uh, they offer that service because they want to be able to sell you a build. Um, you're not paying more, there's not more margin in there, there's no there's no real tricks. Um, you know, the industry generally just does a really, really good job. And there's, you know, like any industry, there's some bad eggs, but majority of the people in the industry are good people trying to do the right thing. So um, I don't think that's necessarily a bad thing. It just comes down to circumstances and the location you want to be. And sometimes you want to hedge your bets, you go try do it yourself, and you use a a building consultant or an advocate to help you as well. Other things you should be wary of is just how builders perform. Um, some builders take on more volume than others, some are hungry for more business. That can create uh bottlenecks. Um, so you know, your pre-construction time frame, some when you sign up for it to go to site. Some builders can take up to anywhere from nine to 12 months to get them to site just on how much volume they're taking on. Um, some are very average of communication, some are incredible of communication. Um also when you get into construction, some build, you know, in 12 months, some are building nine months, depending on their volume or what they've got on the books. Um and it's also very important to understand what guarantees you have, because uh builders can have it may or may not have a price hold period. So with most land being untitled, um, it's good to have a price hold period. Like how long is that gonna be? And is that gonna be long enough for me to be protected for the title to be released? Um, so a lot of the builders we've got now for anywhere from nine to 12 month price holds. If you don't have that, they may hit you with a price rise before you go to site, which is not nice. Um, build time guarantees, which is really important. Um, are they going to guarantee that they're gonna build a home in that time? And if they don't, they then pay you money as a liquidated damage. Um fixed site works. So that's obviously the earthworks and site works on the site to get your home into construction. Some builders fix that and go, a guarantee is going to be 17 grand, where some leave it as provisional sum, which means they can just change it at any point in time and they go to site and they're like, actually, we've just realized it's gonna cost 10 grand instead of five grand. So a lot of bills still use provisional sums. A lot of builders have now gone to fix to give peace of mind. So all these little nuances need to be considered to make sure that you know you're signing up for that and you're guaranteed that it's going to be that when it goes to site.

SPEAKER_01

I think like a lot of people, myself included, would not realise that there's hidden costs associated with going with a certain builder and that they can basically tack on fees that were essentially in the fine print, but you're not sort of like, you know, most average people aren't sort of clued in to look for these sorts of things. So I feel like you could very quickly become undone if you just sort of went for the the the guy that said, I can do it the quickest and the cheapest, and I can get you in in nine months.

SPEAKER_03

Yeah, and they make they rush the process essentially, and there's so many things as a consultant you can miss. Like there could be if you're a certain uh if you're a certain distance to the coast, um, you'll need coastal protection. So that means your roof cover needs to be different, your roof frame needs to be different for coastal uh provisions because it can corrode. The consultant needs to know what they're looking at and gets into the detail because again, they could just go, yep, this house fits on that block and they miss all these little nuances, and you're like, I'm sorry, there's actually 30 grand we've missed. So devil's in the detail.

SPEAKER_01

Yeah, would your advice a little bit be like, make sure you are checking for what the hidden costs could be? Like the chances of you paying the fee that pops up in your Facebook ad is really pretty slim when you actually get down to signing the paperwork and getting the work underway.

SPEAKER_03

Absolutely. That's often the best case scenario on the cleanest, simplest block with a minimal amount of inclusions. Um, so yeah, you need to go in with the reality that that may not be the price, but go in with a really robust checklist and question like what's in the cyborgs. Tell me any variable that can happen in the cyborgs. Is this completely fixed? And if it's not fixed, what what provision can they hit me with? And have you looked at if it's got bushfire attack? And if clients read their offer and acceptance, you'll be able to generally see if it has some of those things in the uh in the offer. Um, but it's just having someone that knows what they're doing, I guess, representing them and um generally has their best interests at heart and isn't rushing the transaction. Because as soon as they're rushing and trying to get you into the door, reflex. Yeah, uh, they may have good intentions, but when you're rushing things, you're gonna miss things. So just slow down, breathe, understand, ask a whole lot of questions. Just come in and bombard your advocate or your sales consultant. If they're not willing to answer those questions or stumbling on those questions, um, that's probably a red flag as well. Yeah. But it's okay if the consultant goes, that's a really good question. I don't know if the answer.

SPEAKER_02

Yeah.

SPEAKER_03

Um, I'm gonna actually ask the builder, I'm gonna do some research because someone that's a slick talker that tells you everything you want to hear again isn't necessarily the right person. Because there are so many variables variables we're building. Sometimes we need to go need to go back to the builder and go, hey, this is a tricky one. What do we need to do here? And they go, X, Y, Z, this is the cost for that, and then be transparent and tell them up front.

SPEAKER_01

Yeah, okay.

SPEAKER_03

So our next segment is do you think you're ready? So this is some quick fire questions we throw at each other and uh we'll answer them and hopefully it educates some people. So you're up, throw them at me.

SPEAKER_01

Okay, here we go. Uh do you think the Perth housing market is broken?

SPEAKER_03

Uh yeah, it uh to a degree it is. Um the fact that we've got such ridiculous undersupply in the established market, it's historic levels and it's uh mind-boggling how low it's actually gotten. Um that proves that there's something that's broken. Housing supply is broken, it's been broken for years. Um and the prices that first-hand buyers are having to pay is um brutal. It's like, you know, the older generation are even acknowledging that this is really tough for first-hand buyers to get in.

SPEAKER_00

That's when you know it's not. Yeah, I know. It's like they're actually admitting it. Actually, it is.

SPEAKER_03

Yeah, it is tough. And they're owning it. So it is in that sense, um, yes, it's broken. Um within broken things, there's always a silver lining and there's an opportunity there. Um, because it is broken, it's creating undersupply, and there is growth. So if a first-hand buyer does get into the market, they're going to have some wins along the way and they'll hopefully get some equity. Um, but fundamentally, we need to build more homes.

SPEAKER_01

Yeah.

SPEAKER_03

What's your perspective on that?

SPEAKER_01

Oh, well, we don't know the answer from my perspective. It's absolutely destroyed.

SPEAKER_03

Shattered, yeah.

SPEAKER_01

Oh, yeah, it's like so it's getting harder every day to feel optimistic about, you know, my future prospects and making it a reality. Like, truly, like today, as of today, I'm sure it'll be a totally different story this time next week. But um, my affordability can get me uh an absolute demolished, like derelict house in Calgooley, for example.

SPEAKER_02

Yeah.

SPEAKER_01

And I hear all the time, oh, you just gotta start small, work your way up. I don't think people who say that had to start in Kalgooli or like Northam or something, you know, which are great places and they serve a purpose and they're awesome. But like, you know, my You can't live there.

SPEAKER_03

You don't want to live there. You live in the city.

SPEAKER_01

Our jobs are in the city. Yeah. Anyway, I could rant at you all day about this. Um, but yeah, it's so hard. Any way you look at it, there is just it's becoming more and more difficult to feel like there is a clear path forward.

SPEAKER_02

Yep.

SPEAKER_01

And so for someone like me, um, that looks like maybe I will be a renter for life, or at least until my parents sadly kick the bucket and I finally get some sort of inheritance.

SPEAKER_02

Yeah.

SPEAKER_01

Um, hoping I'm in the inheritance, otherwise, you know, really truly will be screwed. So a lot of these I call them soulless hotboxes um that I've seen. So those new estate areas way far north, like Eglinton, Yanshep Way, and there's a bunch further down south as well, sort of just off the freeway. Um to me they don't look great. But maybe from your perspective, they're a little bit more attractive. Who knows? Um, but who the hell wants to live out there, would you say?

SPEAKER_03

Uh, I get it. Um look, it's absolutely stunning up there from a uh beach point of view, infrastructure point of view. Um, and I think a lot of the people who live up there often work in the area as well, or there might be FIFO, and they want to be in a community that's family oriented. So I was very much like you, I was very obsessed about being like really close to the city and or or coast. Um, and I I quite didn't quite understand it. But then you go out there and you sort of see how those communities are living. They are really, really beautiful. The homes are new, obviously. Um, whilst the soil's hot boxes are the thing, uh what you what you're saying, they actually do stack up energy efficiency-wise. Everything's everything's a seven-star energy rating these days for it to even be legally compliant. So they're actually the heating and cooling in one of the smaller, newer homes is actually stacking up better than an old home. Um, and it's a it's a gateway for people to get into the market. I think it is all context, and in another 10 years from now, we'll go, yeah, that isn't as far as what we thought it was. So for these people, I think it's um A, it's a beautiful community, but B, it's it's a way for them to get into the into the property market and being an area that's safe for their family and surrounded by people that are like-minded.

SPEAKER_01

Well, here's one of my big gripes about these places. These houses are tiny.

SPEAKER_02

Yep.

SPEAKER_01

Like barely a hundred square meters.

SPEAKER_02

Yeah.

SPEAKER_01

And they're not necessarily like affordable. Yep. 800 grand plus. And I'm like, number one, who wants to live there? Because they are, there's no that you can barely fit a finger down between them. Um a lot of them have got these black roofs, which now that you bring up the energy efficient thing, I guess maybe that's not as as big of an issue as you're seeing. I think like when you see it, it looks more alarming than potentially it is.

SPEAKER_02

Yeah.

SPEAKER_01

But I'm like, it's these tiny houses, they're squished up like this. People are essentially living on top of each other. They're basically, my mum calls them horizontal apartments. Yeah, yeah, yeah. It makes sense.

SPEAKER_02

Yeah.

SPEAKER_01

And I'm like, who's living here? And but also who can afford to live there? Because they're not really like fair enough if they were affordable, if they were priced, you know, in the 500, 600. But they're not even. Like, I wouldn't be surprised if they even tip out at a million dollars.

SPEAKER_03

Getting up there in some of those areas.

SPEAKER_01

And like, where's the backyard? Where's the front yard? It's all fake turf. Like, I've got strong opinions about these.

SPEAKER_03

Love it. Let's go. Um, so like you said, horizontal apartments is pretty good. And that's essentially um apartment living, people need a house, right? And they probably paid five, six hundred thousand dollars for that house, mind you, two years ago, because that's probably when they signed up for it, and that's why they're in and it's built now.

SPEAKER_02

Yeah.

SPEAKER_03

Um, so it was a really good value uh proposition at that point in time. Um, the amount of FIFO community that we have in Western Australia is insane. Obviously, it's one of our biggest industries from a job perspective. And most of them just want to lock and leave house. Like they want to be able to turn up to the home, leave their staff air, lock it, and not have a huge garden that they need to maintain. So that's probably talking about the narrow lot properties that you're talking about. Um, but there are also properties out there that are on slightly bigger blocks, like 375 square metres and the 450 square metres. Um, some of them are absolutely stunning. And the way homes are designed these days, obviously you pull the home further to the front, it's closer to the street, which obviously can have an impact on street escapes, but the backyard isn't actually that bad. They've got space, they've got a bit of lawn, um, and they've designed the home quite efficiently. The reason why the blocks are more expensive is fundamentally land's harder to get and it's more expensive. And builders, their building prices, margins have increased, obviously, because they can, because they were at a really low level. Um, but most of it is just labor costs. You know, there's certain trades out there and they deserve it as well. They've worked, they work really hard and they'll probably pay too little, but some of them are earning double or triple what they were as a square meter rate or per brick rate than what they were. So then that gets passed on to the end user. So there's like again, death by a thousand cuts. Every single part of the process is getting more expensive, and then that gets passed on to the end user, and it's brutal, and that's why. And then on the consumer side of things, you've got this desperation on top, and everyone's fighting each other through just really terrible undersupply. So do you think investors are causing uh a big part of the problem for first home buyers?

SPEAKER_01

Um, they won't let me say this, but yes. Well, I don't know, because it's like when you're a first home buyer, you are competing with so many other people. You're competing with like a lot of boomers are trying to downsize. Absolutely. So they're in the pool with us. You've got investors who have so much cash ready to throw at anything, and they they know how hot the market is, and they're probably smarter and cleverer with their finances than I am. And so they've got money to burn and they can whack another 50, 100k onto an offer. Um, they have the ability to do that more so than someone like me. Um, and then you've got, yeah, people coming in from I don't know, over Over East or wherever, and they're cashed up, ready to enter this Perth market, which is absolutely on fire. Um, so would I pin the blame solely on investors? Absolutely not. I think they are very much making making use, taking advantage of a system that we've got in the moment that serves them perfectly. People are being opportunistic and taking full advantage of what they can. Like they're being smart and savvy and you know, and absolutely pop off, you know. I think there's nothing to be it's not their fault. They just try to get ahead. They're trying to get ahead, like all of us.

SPEAKER_03

Yeah.

SPEAKER_01

But it does, because of the way our like system is set up at the moment, it's like causing first-time buyers like me who are just you know trying to get a foot in the door, it's making it so hard. And so it's like, how can someone like me compete with an investor who's just always gonna have way more financial capital than I could ever dream of?

SPEAKER_03

Or stronger terms, yeah. Like they come in cash unconditional. And we saw that, we see that in um House and Land as well. Um, they're uh they come in with a cash unconditional offer because they can, and then first-hand buyers often come in with a pre-approval. What the developers are doing now, which is compassionate and the right thing to do, is they're actually reducing or if not sometimes banning investors in estates. So they're going, we will only take first-time buyers or people that are owner occupiers in an estate, and they're actually basically stopping investors going into an estate. Reason they're doing that is A, because they've they've always been about helping first-time buyers get into their communities. Yeah, but B, they also want their communities to look beautiful because investment homes don't necessarily get as much care because their rental and the lawns might be long and the cars park out the front, um, versus they want their communities to look beautiful. So they're actually pushing investors aside, going, we'll take a slight risk on this person, even though they're pre-approved or might just have a letter of eligibility versus cash unconditional, which is a guarantee so we want you in the estate because you're going to make the estate beautiful and a part of the community.

SPEAKER_00

So where are they doing that?

SPEAKER_03

Pretty much all estates, not all, but majority. Um, you know, there's some major developers that we work with. Um sadly are being very proactive in this space where they're protecting owner-occupiers and going, some estates are completely not allowed to take uh investors on. So they are trying to uh support the uh the first-time buyers. Yeah, uh, but I I do agree that you're absolutely it's it's broken because you're competing on an, especially an established property, and you've got these investors coming in all the time from East Coast, they're cashed up, they've just ridden a wave of equity and they're just bombarding and it's it's uh it's it can be soul destroying for a first-time buyer.

SPEAKER_01

Can I offer a flip-signed perspective as well? Because a lot of these trashed houses that I inspect, uh, a lot of them now especially are out of my budget. I can't afford them. Um, but I have met a few investors recently. Well, investors might not be the right word, like flippers, I guess.

SPEAKER_02

Yep.

SPEAKER_01

And so they have this financial backing. So they are buying a total derelict house that's had a fire torn through it and no one can actually live in it. It's unlivable. Um, they buy it, make it into a beautiful family home, you know, into a beautiful big four by two or something like that. Um, so someone who's living in maybe a smaller house and maybe they've had a few kids, that's a house that they can move into and clear out some of this stock that's more appropriate for a first home buyer. So I think investors slash flippers who are sort of executing that sort of stuff, I just, you know, I think that is what we need. We need sort of people that are out there doing this proactive work rather than letting dumps sit in derelict and just land banking essentially, waiting for the market to explode even further. So there is a place there is a huge role for people who are doing that sort of work. And so I don't want to take, you know, anything away from people like that.

SPEAKER_03

They're creating supply.

SPEAKER_01

They're not helping, they're helping people, like first-home buyers.

SPEAKER_03

So anyone that can create supply and like you said, help people in getting into a home is great. And they need to earn an income doing that because they might not have a job doing it, and that is your income to flip it. So everyone's entitled to make a dollar um in society. But um, like you said, I think it's it's an opportunity for people to create and get a house essentially. So yeah, it's great. What are your expectations for your first home?

SPEAKER_01

Well, my expectations are underground at this point. My expectations. I honestly would live in a bus shelter um at this point. As long as you own it. Sorry?

SPEAKER_03

As long as you own it. As long as I own it, yeah.

SPEAKER_01

My expectations are really, really small. At this point, I just really want to buy something to call my own. If it's if it's an apartment, a unit, a, you know, a place out in the middle of absolute nowhere. Um, if it's a piece of land out in the middle of nowhere, I'll take it. My expectations are just I really just want to, I want to get in and I basically want to take that off so I can start the rest of my life.

SPEAKER_03

Move on to the next thing. Yeah, absolutely.

SPEAKER_01

I want to like, I want to travel the world. I want to probably start a family one day. I want to just like start having these other big life achievements and like ticking things off my list of goals without this heaviness of the weight of trying to buy something so I can set myself up for the future. So in terms of that, it's sounding a little bit like, you know, a bit broad and a bit whatever, but yeah, I really just oh, really just want to buy something. At the same time, don't want to make a bad choice. Don't want to be an idiot and buy something that's just gonna, like you said, be a noose around my neck at the end of the day.

SPEAKER_02

Yep.

SPEAKER_01

Um, but yeah, I don't want to overpay for a dump. Um, I don't want to buy an apartment and pay fifteen hundred dollars a quarter for strata.

SPEAKER_00

Yeah. Um and get very little growth. Exactly.

SPEAKER_01

I don't want to buy a pocket of land in an area that's never gonna appreciate in value.

SPEAKER_03

And you've got no rental income coming on and you're just holding and you're getting nothing for it.

SPEAKER_01

When it comes down to the nidiguity of that, I'm not gonna be an idiot. Of course. I still just um I want to make a smart decision. Um, but in terms of what I want to acquire to live in, I will really live in anything. I've lived in a studio smaller than this room. Like I've lived in so many random places. Um, so I, you know, despite what some people might think, you know, based on the houses that we inspect, I do not have a huge bucket list of things. Maybe at the beginning I was like, oh, I'd love a yard, and you know, I'd love to be able to close the bedroom doors, you know.

SPEAKER_03

It's got a roof. Good, bring it on.

SPEAKER_01

I will live in a van. Honestly, if that's what it takes, I'll do it.

SPEAKER_03

Nice. Well, it's not nice, but it's uh that, like you said, compromise, and there's no real choice. And it's just getting in and uh getting your foot onto the ladder, and um, it's uh it can be very demoralizing for first-owned buyers right now. I totally get it, and we're seeing how fast property prices are moving. It's just it's crazy. So we have seen interest rate rise, um, which also is a blow for first-owned buyers, but it's a step in the right direction, I guess, to try to cool the market down because the market's too hot. Like fundamentally, it's too hot. Um, I have an opinion that I think it's been overly stimulated. Uh, obviously, there was a bit too much, probably, government spending going on with first-term buyer deposit schemes, and those things had good intent to help first-home buyers, but it's actually just driven the price up another hundred grand and driven more first-term buyers out of the market. Some of them that capitalized really early on and got in fast did well, but it's kind of just made it worse for everyone else that didn't get in at that time. So, over-stimulating markets, which we saw that with the government grant stimulus, everything like just exploded, and then they've done the first-term buyer guarantee when we already had a hot market again. It just drives property prices up. So, I'm like pro, just slow the government spending down. A stable car market is good for everyone. And then first-time buyers don't have to frantically try to desperately get into the market. It's not good for anyone.

SPEAKER_01

So, yeah, couldn't agree more. Um, one of the worst days of my life, no, that's too dramatic, but it was honestly awful when the 5% scheme came in. Checked the apps the following day, boom, prices exploded. I'm like, okay, well, what did that achieve? I don't know.

SPEAKER_03

And they always the government saying it's only going to put prices up 1%. We all knew anyone that worked in property is like, this is gonna be an explosion. And with supply and demand, it's pretty basic economics. There's already a limited supply, and especially in Western Australia. Yeah, throw more demand on top, it's just gonna explode.

SPEAKER_01

Even their own analysis said prices will go up. Aeps. I don't know, yeah. I don't know. I think there's something weird going on there.

SPEAKER_03

Yeah, it wasn't maybe the right move. Probably not the right move there for the government, but um, unfortunately, that's now why the RBAs had to come in and take the money away. So we give you money and then take it away, which is is crazy. It's just this pulling two different levers that are uh against each other, which again has just put people into a worse position. So um, yeah, that's the reality that we're living in, and um, we just navigate the best we can.

SPEAKER_01

We're our best. That's all we can do.

SPEAKER_03

Our next segment, bring it to the table. So you bring something that's uh, I guess special to you or has a story behind it, and you're gonna share it today. So what have you brought?

SPEAKER_01

Well, here's my own little piece of wisdom. It's no match to yours, but it's something. Um, it's a little something I live by, and I think it's like quite relevant in terms of my hopeful house buying journey. Um it is around uh I think what we really need in life. I think if you have love and happiness, if you have your health, um, you know, and people around you who who love you, there is really nothing that's has any financial value that is ever gonna top that. So for example, say I never buy a house, but I live a beautiful, amazing, happy life, I'll still chalk myself up as a as a total winner, you know. Um I was speaking to a agent the other day who sells luxury mansions all over the Western suburbs. And he actually said, You brought he was like a gorgeous elderly man. Um he said, You brought you're probably happier than the people that are living in these occupying these mansions.

SPEAKER_00

Correct.

SPEAKER_01

Just the level of stress and the level of you know what other commitments they have in their life. Like you probably go home on the weekend, have a nice time with your family, you can do your hobbies and you have a simple life. The simple, the better, I think. More money, more problems. To quote that song, I forget the name. But yeah, I think that is something that I really just have to re- continue reminding myself of. And I would encourage like other people to sort of like just remember what truly is important in life. Like happiness and health and like being surrounded by people you love is gonna trump any type of house any day of the week.

SPEAKER_03

100%. A house needs to add value to your life. Um, and there's no point uh trying to make as much money as physically possible or trying to buy a tangible asset at all costs. Yeah. Life is certainly the most important. I've been through that myself, and I've been through the accumulation phase. I'm now through like a bit of a balance and work-life balance phase. Um, they're really, really important. And um what I find is no matter what, when you buy a really nice car, something you've been dreaming about, you get it. You're like kind of like, this is really cool. And then like two weeks later, you're like, Yeah, you kind of yeah, it's never as good as you think. So often I always say the chase is more exciting than the win and getting it. And um, often buying the home is just as exciting as actually getting it. Because when you get it, you're like, okay, I've achieved that.

SPEAKER_02

Yeah.

SPEAKER_03

Um, so yeah, enjoy this journey, as crazy as it is, because you'll look back at it and go, that was one of the coolest uh um experiences in my life. And uh, whilst it felt completely out of the reach, you'll look back one day and go, I made it happen, and you feel really proud.

SPEAKER_00

But it's all on the internet to look back, yeah.

SPEAKER_03

Correct, and it's giving me low, you can never forget it. Um and uh experiences are key. So I'm a big believer, experiences are more important essentially than accumulating tangible assets. Of course, getting assets, in my opinion, is a way for you to then get more experiences versus people are really obsessed with getting this beautiful mansion or something like that. And it's like, but if you're a slave to that and constantly you can't go on holidays, you're struggling to make ends meet, that's not the right thing to do.

SPEAKER_01

Yeah, it's like what's the point of life if you can't spend any time enjoying it?

SPEAKER_03

100%. And that's why I think a lot of people, and I've done it in the past, is rent vesting is a really nice way to do it because you have tenants helping you pay for a property, and you still can be somewhat fluid and going, I actually do want to just pack up and move to the other side of the country and I don't have to sell a house and do all these things. It's like the house can just keep ticking along and I can go live experiences. So really cool wisdom. I like it.

SPEAKER_01

Oh, thank you.

SPEAKER_03

So the next segment uh is lock it up. So what did we learn today? Um it's uh it's crazy out there. The market is absolutely insane. Um, based on what you're saying, you're just essentially wanting to get into the market and um sadly a whole lot of compromise in the process to be able to do so. Um I think it's really important that first-hand buyers don't make really like um rushed, uninformed decisions in FOMO mode to get into the market. They still need to be very considered while it's smart to try to get in as fast as you can. You don't want to do that at all costs and you need to be measured. Um, the devil's in the detail. Um, don't uh don't essentially fall for sales tactics. Get something that's achievable as well. You don't want to put a noose around your neck, uh, work a life balance, um, being able to still have a life. Um, you shouldn't buy a home that completely compromises that. Um, and consider alternate ways of getting into the market, like reinvesting and um, you know, maybe look at alternative properties you probably wouldn't have considered in the past. It's just a stepping stone um to get in the market. Love to hear your thoughts on the lockup.

SPEAKER_01

Well, I learned so much from you around house and land packages, um, whether you buy land, bring on, bring a builder on, all the fine print that you have to look out for if you're thinking about going um one of these certain avenues. I didn't know about any of that before.

SPEAKER_03

So what's good on Dave to learn something?

SPEAKER_01

I've taken so much away just from that um side of things. So thank you so much for sharing that.

SPEAKER_03

Any time.

SPEAKER_01

And um, yeah, it's been great to chat to you about where the market's at, your opinion on things, your perspective um, and different options that people should be exploring and you know what they can do with it with their money, but still while trying not to make a silly decision with um what they want to buy. So um, in summary, I think it was a great chat. Very productive from you.

SPEAKER_03

Absolutely no. Thank you so much. Thank you for listening to Own It, Your Property Partner. If you found today's chat helpful, share it with a mate, subscribe, and leave us a review. Today we're reporting on the land of the Woodjuck Norma people. See you next time.