TFS WealthCast

2026 Wealth Strategy – Millennial Advice to Gen Z

• Tomorrow Financial Solutions • Season 2 • Episode 11

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What does it really take for Gen Z to build wealth in today’s property market?

In this episode of the TFS Wealthiest, we break down the harsh realities and powerful opportunities facing the next generation of buyers and investors. With rising property prices, changing lending landscapes, and evolving technology, the “old way” of achieving the Australian dream no longer works.

Founder & Director Pramu Rodrigo shares raw, unfiltered millennial insights to help Gen Z rethink their strategy, avoid common traps, and start building real wealth faster and smarter.

💡 In this episode, we cover:

  • Is the Australian Dream still alive for Gen Z?
  • Why traditional property strategies are outdated
  • The truth about 5% deposits, grants, and “bad debt”
  • Smart alternatives like rentvesting and co-investing
  • How to use technology and AI to gain a financial edge
  • Why mindset not income is the real game changer

This isn’t sugar-coated advice. It’s a reality check and a roadmap.

If you’re a first-home buyer, aspiring investor, or just trying to figure out your next move in 2026… this episode is a must-watch.

🚀 Want a strategy tailored to YOU?
Book a free call with TFS and discover how to build wealth your way without following outdated rules.

🎁 Plus, learn how you can earn rewards through the TFS Loyalty Program turning your financial moves into real lifestyle benefits.

Any information discussed or provided in this podcast is general advice and has been provided without taking account of your objectives, financial situation or needs, you should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product.

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SPEAKER_01

This is the DFS Podcast where money cost gets real and financial freedom is more than just a goal. Without further ado, let's dive in. Hi guys, and welcome to uh well I can't say special, let's welcome to another episode of the TFS Worldcast. This is kind of a special episode. Today's episode is millennial advice to Gen Z. The Aussie Dream. Can Gen Z's actually buy a home in today's market? And as always, joining me on this episode is uh our founder and director, Mr. Pramu Rodrigo, and he's gonna give his millennial insights to us Gen Z who's looking to get into the market and buy our first home and then grow a property portfolio. So without any further ado, as always, hi Pramu, welcome to the episode.

SPEAKER_02

Thank you for having me. Um this one is gonna be a bit of an interesting one.

SPEAKER_01

Every everything, every every episode we lose interesting Prabhu. Okay, okay. But this one is yeah, it's it's uh it's a bit more personal, you know. No, because I have you here, you know, now you your your Gen Z. I'm I'm in the middle of Gen Z and Millennials. There's no middle. I listen to old school music. I listen to Brian Adams.

SPEAKER_02

All right, let's let's get this straight. Let's start the episode, all right, right, for all the listeners as well. Who's Gen Z and who's millennials? You want to check GPD this and then? Oh no, okay, okay, okay.

SPEAKER_01

So I said a millennial at heart, you know. Anyways, Pramot, let's let's kick things off. You know, let's talk about the housing prices. Yeah. You know, it's uh you see it on social media, you see it on websites, you see it on the news. Younger people are complaining that they'll never be able to get into the property market because of increasing property prices. It's come to a point where a single income holder can't even buy a property, right? So let's start with the hard stats pro. How bad is it actually for young people trying to buy property right now?

SPEAKER_02

Oh, it's it's how you look at it to be to be very directly on if if I be very direct on this, it's how you look at it. Now, if we're gonna go down the path of the the current economic situation where the you know your living expenses are much more higher. Uh I mean, you know, you have more options, but then when you have more options, you get to spend your money in more different ways. So more options to spend money as well. If you really think about it. That that's one of the uh problems in in the current era. So so unfortunately, Gen Z has to go through this, whether whether Gen Z like it or not. Now, at the same time, the property prices have also gone up because the demand is much higher. Okay, so you know, millennials uh are or uh they are in they are in their prime age, right? So they got the money, they got the equity, uh, they have the means to borrow, right? And and and they have gone through certain uh uh uh decades to understand how how how the world works and the world economy works aspect of it, the property markets, how it works. So they they they're coming into the market with a bit of experience. So then we have Gen Z who are in the market just trying to get in. I don't think it's uh it's uh it's a fair game, but it is what it is. Uh so the expenses aspect of it, Gen C as well as millennials are going through the same expenses problem anyway. Uh it is expensive. Right now, as an example for you to go uh from from you know from your place to go to the city to have a good time with your friends, um, you don't want to drive, you want to take an Uber.

SPEAKER_00

I mean I I mean look given the current status of the world, I really don't want to drive because I can't afford pool.

SPEAKER_02

Uh so there there you go. But but majority of the people will take the option of going on an Uber or a taxi. But look at the cost. Now, if you're 20 kilometers, 25 kilometers away from the city, look at the cost. Yeah, it's about 60 bucks. Just just one one way, yeah, exactly. You come back another 60 bucks.

SPEAKER_01

It depends on what time you book it. So if you book it, you're in high paid, you're gonna be paying both.

SPEAKER_02

So the options of expensing is much more uh in the current era. So buying your first home or getting to the property market, if you're going to follow the same way the millennials did it and their parents did it, and their parents did it, you got you're not gonna do it then. Right? You you're planning on saving a uh uh 5% deposit and trying to think that you can create a uh uh 10, 15, maybe 20%, 20, 20 property portfolio, you're dreaming. That's the truth. Yeah, because you start at 95% of debt, you start at a bad debt, which is which is you're buying your first home. First home debt is a bad debt, you're not getting any tax benefits, right? So all your net income is gonna go away for that. So so your actual start point is not that good, right? So so the governments are giving options for first home buyers to buy their first home with a five, just a little as five percent deposit. They don't even charge stamp duty, and on top of that, five percent deposit, they give you a ten thousand dollar grant as well if you if you manage to buy a house and land or brand new property. Most cases you go home, or once the house is completed, you have about seven, seven, six thousand dollars left over. What do you do with it? You will buy a TV. Once you buy a TV, at least sixty-seventy percent of the six thousand dollars gone. Because you're not gonna buy a one thousand dollar TV. I mean, look, we we have Netflix and chill, you know. Exactly. The way the the ways of expending your your money is is a lot more. I mean, you're gonna do it in a very different way. Netflix, as you mentioned, stand, binge. I don't know. If you have kids by any chance, you know, then you gotta get Disney.

SPEAKER_01

None of these are cheap. So basically, uh millennials, you're saying we need to sorry, Gen Z. Gen Z? Is that what they call Gen Z. I don't know. I I I consider myself a millennial. You gotta Gen Zen Gen Z, you know. So you're saying that we need to learn to control our expenses. You can have a lot of unnecessary expenses, as you would call it.

SPEAKER_02

Can I be very very direct on this to you, Vishi? Yeah, if you can be very direct. Um when I'm when I'm speaking to Vishi, by the way, that means I'm speaking to quite a lot of people in his age and maybe uh younger than him as well. He's not that exactly. That's why I consider myself familiar, but he he is an old agency. Uh right. Okay. Coming back to my answer. You need to you need to innovate a bit more than what you guys are doing, in my opinion. Right? You need to start thinking a little bit outside the box. If you create, if you actually put this whole thing as a box, say a deposit, buy your first term, go to the Australian dream, have a family, have kids, get a good job, retire happily. That's that's inside the box. That box has been existing for some time. That's an old box. It's an old box. We need a new box. Start a new box. All right. Right? Maybe, maybe don't even go to a box, maybe start thinking outside the box, then don't even consider there is a box. It's a lot of box stuff, bro. Right. So so, but but if you if you start implementing that kind of a mindset for your investments or whatever the way that you want to grow yourself, you'll see the opportunities are crazy. Because there's a lot, lot of, as I mentioned before, there's a lot lot of ways that you you can expend. And at the same time, there's a lot of ways you can earn money, you can create wealth.

SPEAKER_01

100%. I mean, coming back to a lot of ways that uh Gen Z making a lot of money these days, in especially in America, only fans, but let's not talk about that.

SPEAKER_02

I mean, if you if you think about it, that as an industry itself, right? What what sort of money are they making? A lot of money. Exactly. And and look at the gap. The uh income gap, yeah. Look at that gap.

unknown

Right.

SPEAKER_02

You're talking about 30, 40, 50, 100, 200 million, right?

SPEAKER_03

Yeah.

SPEAKER_02

Right. So so so look, I I look into that uh industry as well. What how how these people are making money, what what what kind of implication these people have. Is this tax implication? How this way I I like to see how how these things work. But these are some of the ways. I'm not telling you all to go into. I'm not telling you all to go into that kind of uh industry, probably but but but then if you start thinking and and creating um ways or uh different ways that you all can create wealth, then you will see these impossible things become possible, right? Now, a lot of things you were asking the question about buying a property or getting into the property market as a property investor. So, Vish. Now, who and why someone has told Gen Z that you will have to buy this property just by yourself? Why? Why does it have to be husband and wife or your partner? Why is it always have to be two people? Why can't it be four people?

SPEAKER_01

Gen Z is called that a groupie.

SPEAKER_02

No, but you if you really start thinking about the ways to to create wealth and and in a innovative way, we implement it. This is a way, this is a time that we have AI. We have the uh, you know, before we come to the AI, we go to AI.

SPEAKER_01

When we talk about AI, there are so many types of AI. There's Chat GPT, that's what a lot of people use. Even that is confusing now. Yeah, that's confusing, and there are so many other types of AIs that have made life so easy that it's actually made a lot of people very lazy.

SPEAKER_02

Yeah, but if you start thinking about from the negative aspect of that thing, you're gonna you're gonna fall short. Right? Because whether you like it or not, this technology is going to be there. And it most likely this technology is gonna evolve very fast than you guys are. Oh, yeah, 100%. So you need to start you need to really start learning how to use the technology to your advantage to grow. Right now, I'm a millennial, I'm applying a lot of tech technology into my business. In a year ago, I wasn't even thinking about tech.

SPEAKER_01

I mean, coming back to that, being a millennial, you use so much technology that you make us Gen Z look bad.

SPEAKER_02

I mean, I know more than you guys when it comes to tech, right? Because it is evolving that quickly. I need to also start fast track my evolve the the way I evolve. You're adapting to the changing environment environment. Yeah, that's exactly what the the Gen Z must do right now, right? Now we go down the path of buying your first home, getting a 5% deposit. Why is it always needs to be the 5% deposit? And does it really have to be your first home? Right? Your parents or your grandparents ended up buying their first home and stayed there for 20 years, 25 years. Maybe your parents only stayed about 15 years. The time is coming down. Let me tell you statistic. In my in our industry, in mortgages, when I get got onto the industry, the the tur the the back in the day. Back in the day, yeah, it's about 15 15 years ago. But um the the the the are you sure you're a billionaire?

SPEAKER_01

It sounds like you know, you could be a borderline.

SPEAKER_02

That's another problem with Gen C can't do their maths properly. So much reliant on Chanji Pt.

unknown

No.

SPEAKER_02

So if you really think about it, Vish, right? Um where was I? You just took my whole my point.

SPEAKER_01

So you were you were talking about how you know uh our grandf our grandparents' time, they would buy the first house and they would buy their house for a long time.

SPEAKER_02

So, what I was trying to say to you is the statistic shows when I got into the mortgage brokering industry or the finance lending industry, as a mortgage broker, the a loan of a client's loan stays with you at least about seven to ten years back there. That is average when we started. Average. I I think uh maybe I'm I'm a little bit incorrect there. I think the stats shows about six years. You know the stats shows what's what what's there now? Six months. Six months? It you three years ago, it used it was three years. Three years ago. Okay, three years ago. Now it has come down to one and a half years, two years. Now that's a massive problem to our industry because if you don't keep your customer for two years, you're gonna lose out the revenue that you earn as well.

SPEAKER_01

It's called clawback, yeah?

SPEAKER_02

Clawback.

SPEAKER_01

If you don't adapt is that also because there's like so many brokers in the market now, everyone else. No, no, nothing to do with that.

SPEAKER_02

Okay, because there's so many options. Comparing the products, so many lenders and options, so many lenders, and I mean it's it's a very easy thing. You take you take a couple of lenders, take the policies or take the products, put it to chat GPT, it'll give you a good comparison, right? It will give you that. So now all of a sudden, people are thinking, oh, hang on, every six months, maybe I'll change my loan. It's okay to pay$400 every time I change my loans if I can save at least$600 every six months. If you're very good at with numbers, you can do this as well. But what I'm saying is, is it the right thing? Maybe not, because if you do it in the wrong way, you're actually shooting yourself. But you also need to understand how the technology is evolving and getting the market to change that way, right? So applying this to Gen Z, see how quickly the market is changing. Every time the millennials or baby boomers, baby boomers are hardly now uh refinancing their loans, right? Baby boomers, they're retired, they're just gonna live a good ride, you know, driving their posh, you know, traveling. Yeah, worst case is they're doing a reverse move. But but what I'm saying is they've they've made their money too, but but millennials are making more much more money than the baby boomers. So when the millennials are making so much money than the baby boomers, and then add the technology on top of that to them, they're in a Christmas land. Because millennials are unstoppable. Yeah, that's the thing, right? So, this is why for me, for my business, technology is is a must.

SPEAKER_01

And for your team, of course, you know, we love our technology.

SPEAKER_02

Yeah, I know that.

SPEAKER_01

Yeah, right. So much easier.

SPEAKER_02

Going back to school, you can learn these new things. We love it, we love it. Right. So, so I I hope what I explained to Gen Z in terms of getting to the market, you really need to start thinking very differently. Right? If you if you think that you want to buy a property, let's say, let's let's say take a take a very simple example. You want to start at Glen Waverley. Yes, you want to end up somewhere in Toura. Yes, you can have aspirations like that. Good that you can have it. It's gonna take some time. It's gonna take a place. If you do it right, it won't take that long. Yeah, that's also another play. But let's keep it simple, right? You want to start, you want to start somewhere, but you don't want to, for some reason, because you're working in the city, your parents are in Mount Waverley, or Glen Waverley, that side of the town, or Berwood, as an example, a lot of a lot of Asian clients of us, you know, their parents live in Berwood Box Hill. So they don't want to necessarily go away about another 25-30 minutes away. Because they have that sense of community and belonging in those areas. Right. So now for you to get into the market of a Glen Waverley or even Mitcham, Ringwood, that side of the town, your entry point is a million dollars. Right? So your bare minimum contribution has to be over$100,000.

SPEAKER_01

So so so so so to uh elaborate a bit more on that, Prabhu. Now you mentioned that so when we talk about Gen Z, right? Gen Z they value more flexibility and uh the ability to move around. So a concept for Gen Z Gen Z would be rent vesting, like we did on uh episode nine. Previous episode, yeah. Previous episode. So so to reiterate a bit actually.

SPEAKER_02

Yeah, yeah, yeah. So see, rent vesting is very good. So now, Gen Z, you you guys have one of the, in my opinion, you guys are more luckier than us, in my opinion. Because our parents in our generation, our parents want to get rid of us by when we were 18. I think most most of our parents got rid of us when we were 15. Right? They wanted you to go out into society. Society, that's how you get you know the bad you become. Yeah. How many of your generation are still at home? 25. Yeah, because it's just softies. I think we no, it's not. It it is what it is because you you you have that lifestyle your parents have done. You don't need to go and learn unnecessary skill sets. Certain skill sets doesn't apply now.

SPEAKER_03

Yeah.

SPEAKER_02

Right. For you, as an example, we see does the skill set apply for you to go and hail a bus? A bus is going, you miss the bus, you run and you jump to the bus. Does it apply in Australia for you?

SPEAKER_01

I mean, it used to when I was a student. In Australia?

SPEAKER_02

Yeah, all right. The bus will never stop, mate. Never stops.

unknown

Yeah.

SPEAKER_02

You miss the bus, you wait for the next one. That's it, you wait for the next one. In Sri Lanka for us, it wasn't like that. You chase the bus, you chase the bus, but then you jump to the bus somehow or the other you hang on to it. Dude, it's two rupees sometimes. That's all I got, man. You just take me to take me to this place. I mean the bus can't be. So that's that skill set doesn't apply in this era anymore. Right? You you you you can't just go on a train and just pretend that you bought a ticket anymore. You tap, whatever you call it now, you're a tap and then tap out or something something like that. Right? Cardless. Cardless, right? It's QR code, different countries, it goes to the next level. Back in the millennials, millennials when those guys were doing something uh we don't have the money, we still get into the tram and we just sit down and just wait. And I'll get down, I'll walk away.

SPEAKER_01

Right. So basically, you're so coming back to the episode topic, Prabhu. So you're saying the Australian dream is not dead. It's not. But we just have to tick aside the box. It's dead if you think about that you want to achieve the Australian dream. So you can't do what your parents did or your grandparents did. That is dead. That's dead.

SPEAKER_02

Your parents, I mean, my so if I take my parents' generation, they bought their houses. If I if I think about it in a level that if they were living in Australia, they would have bought their houses about$80,000, maybe 60k.$100,000 is a luxury house that they would have bought in early 80s. You can't buy a decent car for$80k these days, can you?

SPEAKER_01

Yeah. I'll just buy a used car, you know, nice used car.

SPEAKER_02

Exactly. Brand new cars are about$80,000 uh above.

SPEAKER_01

That's a that's like base bottle, yeah. Like luxury one.

SPEAKER_02

So then how are you gonna get to this? How are you gonna bridge this gap? It's it's a gap, no? Yeah, it's a massive gap. How are you gonna bridge it?

SPEAKER_01

Yeah, that's true. And then coming back to the start of this episode where you said millennials, you know, uh Gen Z, sorry, we have we spend unnecessary on unnecessary luxuries. So buying a luxury car for a Gen Z is an unnecessary expense.

SPEAKER_02

It can be a necessary expense too. Oh, there's a clock to a store, right? Right? Because if you're I mean, I'm not stereotyping here in different industries. If you're in real estate industry, drive a nice car. You can take an individual who has no idea in real estate, yeah. Zero ideas. Haven't bought a house, haven't invested, haven't done anything by themselves. But if you rock up in Mercedes or BEMA, or I don't know, some cases I've seen people rock up in Lamborghinis, rent Lamborghinis, rent to Lamborghini, rock up.

SPEAKER_01

Okay, all right.

SPEAKER_02

You get big business. Now, these are opportunities that people seek.

SPEAKER_01

So then in that case, that expense actually becomes an asset. Because indirectly it's it's an investment.

SPEAKER_02

If you do it right, the return on investment is very good. You get my hint?

SPEAKER_00

Yeah, I I know I I should I should be able to use, you know. I like going off roading.

SPEAKER_02

No, no, I'm just teasing it there, but uh these are certain uh perception in certain industries. Yeah. So Gen Z, you will have to think outside the box.

SPEAKER_01

Millennials and their parents or baby boomers' box. Look, guys, if you're listening and you want to help, you want help, think outside the box. Talk to us. Free strategy call for you guys. We don't see boxes. We don't see boxes. No, we we don't think like that. We don't we don't think inside boxes. We see boxes, we crush those boxes. That's what we do.

SPEAKER_02

Yeah, so you you cannot think like that way because it's an you're in a in a in a time zone that the current situation today, when you wake up tomorrow, has totally changed.

SPEAKER_01

Oh, yeah, 100% like your boss's mood.

SPEAKER_02

Yeah, exactly. It changed because of certain things have changed. I'm not taking shots anyway, I'm just saying, you know, it's it's a general saying. I mean, you when you say your boss's mood, what I'm I'm talking about your listeners' bosses.

SPEAKER_01

Right, okay, there you go. So, okay, Prabhupada. So now that we've reflected on what's happened, what needs to be, what what we used to do and what we need to do, what would be the playbook that you recommend? Let's say let's talk deposit, you know, let's keep it simple. What's the realistic number right? A first home buyer Gen Z your needs when they're buying the getting into the property market. What are the best ways to actually get there?

SPEAKER_02

First of all, understand what exactly you want to achieve. Right? Whether whether actually for you to buy a house and stay there for the next five years and use that equity and buy another investment property, understand exactly your play. Don't go and copy somebody else's play because that won't work. I think in one of my other episodes I did say do not copy other people, it won't work for you. It won't work. Guaranteed. Understand your play first. See what are the areas that you could possibly go and explore to make your play happen. Yeah. Right. Now use opportunities like getting get get get together with your friends. If you only have 30,000, 40,000 saved up, maybe get get together with four or five friends. I don't know. Maybe I don't know. It can be two friends. That friend might even have another 40k. That's that's an 80,000 dollar deposit. Now go and buy your proper investment property. Only for two years. So that comes back to the rent vesting style. It's not always rent vesting as well, because you're staying with your parents. Your parents are providing you food, lodging, electricity, water, you got no expense.

SPEAKER_01

No expenses, and then the property you purchase, you rent it out. Exactly.

SPEAKER_02

And you're and if it's due to a cash flow, then I mean you're earning money and you're getting tax deductions while you're staying staying at your parents. Take advantage of that.

SPEAKER_01

I mean, I guess these are strategies that a lot of people aren't aware of as well in the market, because like we discuss.

SPEAKER_02

No, so so I tell you what the problem with Gen C right? I'll be very blunt on this. You guys, you guys go down the path of claiming all the garment grants. Why? Claiming all the garment grants. That's all you think about when you make a decision. I mean, no, I can't generalize it that way. A lot of people I've seen in the Gen C that that's what they always think about. Let me get the first abonus grade. I don't want to pay STEM duty, I don't want to pay, I only want to put a 5% deposit.

SPEAKER_01

And I guess it it also comes down to the education that's available on the market. I mean, if you look at social media, all these you know, people who became brokers yesterday, all they're focusing on is oh, okay, I need to get clients, oh, let me target first-home buyers. Why? Because these are the benefits first-home buyers have. So then it comes back to a lack of education, yeah. Uh as to utilizing all these other strategies that would better suit these first-time property buyers slash future investors.

SPEAKER_02

Yeah, absolutely. I mean, let me show you the other side that a lot of social media and other banks and bongish brokers don't show. If you go and buy based on the first term owners grant of a$10,000, zero stamp duty, no LMI, etc. etc. etc. You only ended up putting 5% deposit to start with for your for your purchase, and you are getting a bad debt that you won't get any tax benefits from the government because the reason is a bad debt. You are earning money every month and you're paying tax. And after the tax, you're paying the mortgage, which have been given to you for 30 years. Look where you start the platform. You owe to the bank 95%. You only have a 5% equity in the property, right? Then, because of the demand in the market, because of the uh uh uh lack of properties in the market, you ended up also paying extra to buy that property. Now, on top of the 5% equity that you have in the property, some cases you are catching up to the market as well. So most likely you're sitting at about 3% equity. Because remember, you are overpaying, whether you like it or not. Bank may value it exactly on the land value and the build value, bank may value on the on the on the purchase value that you buy the property, but the things that you spend afterwards, you don't you you don't calculate those things, right? Your furniture, when you're buying furniture, you're not gonna buy furniture. Yeah, the cheap ones. You spend extra to make it nicer. TV, you're not buying a$900 TV or a$500 TV. You're spending about$2,500. You know, I want a big TV at$2.50, maybe some cases. I've seen$10,000 there as well. I mean, size matters. There you go, right? So then you're gonna add depreciating assets into the house.

SPEAKER_01

So I mean, don't forget, but a lot of first store buyers buy after buying a property is a new vehicle. Yeah. Because they can't be driving their old vehicle when they have a new house.

SPEAKER_02

Yeah, you know, you know.

SPEAKER_00

I need a nice car in my driveway.

SPEAKER_02

Absolutely, you know, driveway, you spent, you know, exposed aggregate driveway.

SPEAKER_01

I just moved into my new house. Can I get a car loan?

unknown

Absolutely.

SPEAKER_01

Yeah, I mean. Oh, I've got some equity. Yeah. Can I get a cash out to get a car?

SPEAKER_02

There you go. Versus a person in a Gen Z that quite investor, invest in a property with a friend. They put whatever, they put 10%. Okay. 5% stamp duty, all that crap into it. So so they have a 10% equity to start with. They don't buy furniture, they don't pay electricity bills, water bills, right? Or what they're doing instead of that is earning a rental income. While you're earning a rental income, if you buy the right property, you get enough depreciation on the property, which means your net income is now increasing, which means you are now saving at a higher rate than before.

SPEAKER_01

Because of all the depreciations and tax benefits you get from buying that property. Yeah. Right. Now some may I uh see again. This comes back to lack of education because not our this strategies like this you never see you never seen on social media. I've I've never seen any broker or real estate agent advertise this benefit.

SPEAKER_02

99% people they don't know. Yeah, some don't know, but 99% people they play the short game, right? Quick quick turnaround. Yeah, the quick hook. They're not planning on building empires, they're not planning on building their business for the next generation and and generation beyond. Then the mindset, the decisions making, the marketing, everything changes. Right? But coming back to Gen C, Gen C must understand this, the opportunities that you have in the current market. If you are staying with your parents, if you don't have expenses in the place you live, why the hell you want to go and buy your first home and claim all these benefits from the government as a one-off? Go and buy an investment property and claim benefits every year. And when you look at the compounding growth, it's crazy. You're gonna get the capital growth anyway. You you and I can't control of the capital growth. That is controlled by the I mean, it is the market. But things you can control is buying the right property. If you buy a brand new property, you're gonna have the first seven years the highest depreciation on the property, but get the brand new property at the right place so you can rent it out, and it's not going to be be a be a nightmare for you.

SPEAKER_01

So coming back to you know, to uh read uh to actually expand a bit more on that buying a property in the right place promo. Now we talk about investment properties, right? A lot of clients they want to play it safe, they want to play it closer to home. Like, for example, if you live in the west, you'd want to buy a property somewhere in the west, right? As opposed to, you know, uh, we tell you now us, for example, we've got some great opportunities for clients to invest in Bendigo at the moment, right? We show the numbers, we've done the research, we show them, you know, this is this is the capital growth project, and this is the current vacancy rate. We take all the boxes and then they hesitate. They're like, oh, but it's too far away. I want to buy something that I can go see. Like see what? What advice do you have? I'm sorry, I'm sorry.

SPEAKER_02

Look, investors, if you're planning on going seeing your house as an investment property, mate, just just don't buy an investment property. Just don't do that. You you're not even allowed to go and stand near the crossover. It's called trespassing. Yeah, because trespassing trespassing because you know you have put a you you have put a tenant in the house that that's a this this domain is belongs to the tenant. You own that set.

SPEAKER_01

Yeah. Right. But it's the tenant's privacy.

SPEAKER_02

The domain is the tenant. I mean, can call the cops and say, hey, look, there's a strange man standing on my crossover.

SPEAKER_01

And that comes back to you know, this can actually be a separate episode. There are some tenants, some landlords who put some absurd rules and regulations of their tenants. Oh, you can't bring a partner home. You can't. You can't do that.

SPEAKER_02

That's illegal. That's illegal. You can't do that. So, so I'm I'm not into property management, but I have quite a number of properties that being managed by other people. And you have issues with tenants, but you can't do much. I mean, it is one. Uh property manager and property manager. It's like a multicolored uh situation for me, you know. I've got I've got top quality uh property managers, and I've got an in-between. Then I've got the guys who I'll I'll do this, I'll do that, and then doesn't even rock up. Right. I mean, dude, I have to call some of the property managers, say, can you please send me the statements? They must be really busy, must be busy. Yeah, must be having idiots like me giving the houses to them. No, I'm just I'm just pulling the leg. But what I'm trying to say to you is if you're planning on buying an investment property, don't get good to be attached to the property. I crazy, mate. What are you doing? Just get something else. There are other better asset classes you can buy and invest, so you can go and have a look during the weekend. I get this question a lot. When I'm passing my house, I want to see it. Do what? I'm telling you from my experience, I have two investment properties on my road. Yeah, you never look at it.

unknown

Right.

SPEAKER_02

What can I do? Nothing much. It's rented out.

SPEAKER_01

I yep. Yeah, it's rented out, you're getting the rental income. That's all that's right.

SPEAKER_02

Anything else is the I'm telling you from my experience. Yeah, is not there's no pleasure looking at it. Right? Even if the people haven't taken the these are the things I see. Bins haven't been taken inside. Beans taken on Monday, Wednesday. I'm going after works, the bins are still out. In my head, I don't like these kind of things. Um I have a little bit of OCD. So you stop you.

SPEAKER_01

So do you stop at take the beans in?

SPEAKER_02

When I see it, these guys they're cool. They haven't taken the beans out, but you should be. But but it's not my problem.

SPEAKER_01

It's not my domain, it's their domain. That also another issue, right? Okay, uh some clients. They like to do their own research, which is fine, which is very good. Really good. But then they trust sources like real estate.com a lot. Now, for example, in Bendigo, uh Huntley, to be uh specific, there's not been a lot of property developments there. Most of the properties in the market were older properties, right? Only recently a lot of builders started building properties there. So everything stacks up, vacancy rates, rental income, everything ticks boxes are ticked. But investors, some investors will look at things like current uh median house prices on real estate.com, which uh which is very low for many old properties. Yeah, because it's talking about the land value, it's not talking about the value of the property. Exactly. So when you're gonna get a brand new house and land build on a land, yeah, of course the property price is gonna be more. How can you care?

SPEAKER_02

How can you compare a uh a one-month-old house versus 45 years old house? Exactly.

SPEAKER_01

And if you're an investor, if you buy a house like that, you're not gonna get any tax benefits or depreciations. Are you?

SPEAKER_02

You don't have that to start with, right? Now, for you to add value to this property, because you're not gonna come on, you're not you're not, you're not buying that property less than market value. Let's face it, okay? 90% of people are not buying properties under market values, they are paying more market value. Unless you get really lucky with like a domination sale or something like that, which is that is quite real, you're still talking about nomination sales in the sense that they gain house and land and then brand new. Yeah, but when it comes to established market, you don't get nominations. Exactly, that's the other issue, right? Right? So then unless you have more capital in your savings, or unless you have more capital, you can't add value to this house anymore. You're you're 100% reliant on the market. Fluctuations. Yeah, because if you buy a house and that, you need to do it up. So you're anyways gonna have to put more money. Either you do it up or you subdivide it, put more uh properties in it, or subdivide it into a couple of lands and then sell it. To do that, you've got to have money, you gotta have the capital. Bank is not gonna give you money to just to do that.

SPEAKER_01

And that's another thing we see with uh, I would say first home buyers. When they buy their first home, they don't want to get something with oh, I want something with a big land. Why? Oh, I want to subdivide it later. Wait, you can hardly afford this property.

SPEAKER_02

That's the thing. So they they forget this is this is a problem with Gen C as well. Sometimes they forget what they can do at that particular moment, and they lose out many opportunities when they can do those things at that moment, and then they go and complain. Oh, hang on, it is very hard. We don't have the opportunities, the borrowing is not much, market is very hard to go in, people are paying way too much, we can't afford it. The reason for that is actually you, nothing to do with market, you are not making the decision when it matters, you're doing way too many comparisons. Do your budgets correctly to make sure what you can afford. Don't think you're gonna make a million dollars on the one property. You're not gonna do it. We're not in that market anymore. Your grandmother and grandfather was in that market. You get if you if you're Gen Z, your grandmother and your grandfather was in that market to make a million bucks in a house like that. You're not gonna be in that market.

SPEAKER_01

And I guess this is some straightforward, direct, no, no sugar coated advice.

SPEAKER_02

Yeah.

SPEAKER_01

That a lot of people don't get.

SPEAKER_02

No, they won't. They they they they're sugar coating much as they can to milk you out. Yeah, right? But here, you know, we're we're we're enjoying a nice class of uh I don't need to do that. I mean talent right so I mean Michael, Michael, yeah, yeah. But what I'm trying to say to you is look, if you're going to go down the path of your parents and your grandparents, you're not gonna succeed, Gen C. You won't. You will be complaining, you will be having avocado uh breakfasts. Oh, right, you will be doing that. You love your avocados in the morning. Trust me, I know that. Avocados on toasts, you know. That's what you're like, but the thing is, that's all you're gonna have.

SPEAKER_01

I mean, avocados are quite expensive these days, yeah.

SPEAKER_02

And that that, you know, and then you have to take you you may need to take the toast out, you're just having the avocado only, right? Things can you might you might diluting this brunch as well. So so no, but but what I'm trying to say to you is or to to the Gen C guys, come to the reality, please. When you have an ability to make a decision, when you have the money to afford and invest, do it. Stop comparing. You have the chat GPT, you have the AI technology, you do that through that.

SPEAKER_01

Oh, if you don't want to do it, guys, you know, talk to a team of individuals who do it every day for other people, and they can do it for you.

SPEAKER_02

By the way, guys, we also use a lot of chat GPT, a lot of AI technologies in our systems. We have quite a lot of AI technology in our systems now, right? Uh yeah, we do have a lot. The last couple of years.

SPEAKER_01

We have an annoying about AI technologies integrated into our daily processes, guys.

SPEAKER_02

You know, we we are we are making making it easier for for the for the for the people who work in our office as well as to uh increase the efficiency. That's what we are doing. So we can be so we can serve you better. Absolutely. That that's that's that's the goal that we always work. I mean, we have to evolve to do that. So then then coming back to the Gen C guy, Gen C Gen C has also need to understand when the technologies evolve, there's gonna be a lot of other opportunities. You need to take the opportunity. You cannot compare opportunities because millennials, by the way, looking at the opportunities, they're gonna grab it. One you want to get one, millennials may want to get three at a time.

SPEAKER_01

These millennials, guys, come on, they keep milking it.

SPEAKER_02

It's not because it's not. If you look at the millennials story, it was a very hard story for them as well. They didn't understand this whole thing has become this easy. Hard times, hard bread.

SPEAKER_01

Soft times, soft bread.

SPEAKER_02

You know, I saw a post this uh very recently. Uh, if you were born in between 80 uh 1980 and 1988, the things that those people did bicycle rides to to the town, and we own that domain when we go to the town. That's our domain. Right. It's like it's like the wild, wild west. Right? And you look at, I mean, you you go to different continents. I mean, you go to US, you know, US, you have, you know, what do you call these guys, you know, Dr. Dre, those people, Compton, right? Look at the look at the terror territory wars they had, but then they had the rap wars, the hip-hop wars. But look at the look at the economy scale of them. Look at the economic scale of these guys.

unknown

Right?

SPEAKER_00

I I have it.

SPEAKER_02

I mean it's crazy, right? So, so so I mean, I I believe the first billionaire, uh black billionaire, I think I Oh yeah, Dr. Dre. Dr. Dre, he he he he stuffed it up by saying that he's a blah uh first uh black billionaire before the deal happened. Do you know the story? Oh, really? Yeah, he uh you know he and Tyrone, uh what's his name? Uh this this I can't remember his uh full name. Tyron was the name. Tyrol Woodley. The Fast and Furious guy. Ah, okay. All right. So he Tyrese Gibson. Tyrese, Tyrese Gibson. Tyrese Gibson and Doctor Dre was in a yacht.

SPEAKER_01

See, I'm not I'm not I'm not so much of a Gen Z, I don't know.

SPEAKER_02

So next to millennial wood. Next day they are doing the deal with Apple. Next day. Yeah. Tyres went to Twitter and I think he went to Instagram and put a video saying showing Dr. Dre first black billionaire in US. You know how much Dr. Dre lost? Really? You know how much he lost? 300 million. From the billion dollar deal. Because of that video. So so Apple negotiated deep down. It was very specific. He said you cannot put it out. Put it down. They still did the deal, but I think 300 million was discounted. Damn. Now these these individuals are coming from era that had these kind of domains. Okay? Very simple domains. They we are in the in the same one. And I remember this. I used to do this. When the music was going on the radio, we put the cassette, the actual cassette tape tape recorder, and we record it to get to have that music so I can listen to it whenever whenever I want. How many times do you guys have to do that? I had a cassette recorder. No, no, no. The real question is for you to listen to a music whenever you want, how many times you really just type it up, the music comes up. Oh, yeah. But then you have you have to pay for a subscription. Back in the day, we need to record the thing in a in a cassette recorder. And then we also need to know which song comes after first. So we we used to write it down at the back of the cassette. No, once you have really good memory. Right? So so you you rewind certain things at certain point it's a different era. So so that's that's your millennial. Millennials came through in different different problems. Sri Lankan millennials came with a lot of you know issues of war.

SPEAKER_01

I mean, yeah, uh let's talk about that. You know, speaking, speaking about Gen Z, Gen Z actually, we've gone through a lot of problems. Gen Z has gone through a lot of problems. We have to deal with COVID. COVID is a problem, you right. We have to deal with COVID, lockdown, and our World War III. We're on the brink of World War III, it's happening.

SPEAKER_02

You will make drama out of anything. Trump is riding on that drama. I mean, on on to the serious note, right? So of course you had COVID-19. What do you think the Melanians were doing? They're in a different dimension world, they also went to the same bloody COVID. True, true.

SPEAKER_01

And did you experience World War II, Prabhu?

SPEAKER_02

No. Oh, you know, that one. None of us have. I mean, there's few people have. I mean they don't even bother about talking about it now. Right? But World War III. Dude, it's not gonna be the like World War II.

unknown

True.

SPEAKER_02

It's gonna be a bloody totally different kind of a war. If it's gonna, I mean, I don't know. Digital warfare. It's already started in digital warfare, right? It's it's it's I think it started some time ago.

unknown

True.

SPEAKER_01

Anyways. Thank you, Prabhu. It's been uh it's it's been a great episode as well.

SPEAKER_02

It's been a great episode, like I said, in the 15 minutes, you know, Gen Z millennials.

SPEAKER_01

I didn't attack you guys because you know I I mean look, it was coming to that. Well, what was gonna happen in here? Gen Z versus millennials. I mean, you you guys have everything. I have I have no ammunition here. This guy's done more research than any Gen Z I have met so there's no ammunition here. So, anyways, to recap uh today's episode, guys. You know, can Gen Z actually buy property given the current market? Is the Australian dream dead? It's not dead. We just can't use the same strategies that uh parents and uh and grandparents used. We have to use we have to think outside the box, use new strategies.

SPEAKER_02

You gotta you gotta you use your own strategy in your own current economy state.

SPEAKER_01

And if you want to know a good strategy that works for you, you talk to a team of individuals that do it on a daily basis for others. I'm not saying talk to us, we can talk to anyone, but yeah, talk to us.

SPEAKER_02

I mean, we happens to have quite a lot of Gen Z, by the way. Yeah, we have a lot of people and who happens to be very successful as well. I mean, they're doing very good in their personal lives as well, if I if I if I if I must say. So, um, whatever the strategies our Gen Z guys are doing, uh obviously these guys are not keeping it for themselves. I like this post, we we did share quite a lot of uh strategies. Uh, you know, if you if you have questions, if you want to ask how to even start, hit us up.

SPEAKER_01

Hit us up. Alright. That being said, beautiful people, thank you for joining us for today's episode of the TFS Wealthcast, episode 11, and we'll see you all the next one. Until the next time. Thank you for tuning in to another episode of the TFS Podcast, where we turn knowledge into action and big goals into real results. Now, don't forget to like and subscribe and share this episode with someone working towards their next financial step. Now, with that being said, until next time, keep building.