Capital vs Capacity: What Actually Gets You Approved | Finance On Tap Ep.14

This week on Finance On Tap, the team breaks down one of the most important concepts in lending: the balance between capital and capacity.

From first home buyers to seasoned investors, understanding how your deposit and income work together is key to getting approved — and building the right strategy.

We also cover:

• Why communication is critical in every deal
• A real story where a deal nearly fell apart
• How co-living properties are changing the lending landscape
• Why not all properties are equal in the eyes of lenders
• The importance of tailoring strategy to each client

A practical, honest episode packed with real insights — plus the usual beers, banter, and bad jokes.

Transcript

SPEAKER_03 0:00

Obviously there's other schemes in place right the help to buy is more of like a last resort kind of situation. When you're buying a property, and I say this to my first time buyers, there's two main things you need to worry about.

SPEAKER_00 0:09

Capital and capacity. Like when you're trying to buy a home, we've got the yin and yang upon, it has to balance out. If you have a$600,000 deposit and a$20,000 income, then you're only gonna be able to spend limited. What the income is you're gonna find that balancing mark the unit yang between the deposit and the income?

SPEAKER_02 0:24

We're not in the job that we're gonna give you advice on this is exactly what you need. You know, you've got financial planners, you've got accountants, you've got that's why as a team, like we we're very fortunate that we work with the best in the business. So when you come to us, you're gonna get the best of the business.

SPEAKER_03 0:38

I had a meeting with a first-time buyer and they were just like, Nathaniel, I just want security for my family. I'm more about strategy, right? In that moment, I was like, security, that's the most important thing, right? Roof over the head, boot on the table. If that's what you want, this is what we do.

SPEAKER_02 0:51

We mean to help people get their drink. Well, good evening, everybody, and welcome back to the podcast.

SPEAKER_03 0:58

You're looking a bit hazy there. Oh, yes, almost forgot what we're here for. Hazy pale. That's right.

SPEAKER_00 1:05

We have uh today's one at Queensland 2016 ballistic beer, hazy pale Hawaiian.

SPEAKER_02 1:13

Ballistic. You know when you've got grass and pineapple together? Oh, yeah, my two favourite things. It's gonna be grass and pineapple. It's gonna be a ride. It's an interesting combination. It is. At ballistic, we've been known to wear Hawaiian shirts on a Friday. That's always fun. To welcome in weekend, the thirst quenching hazy pale is the ultimate way to enjoy any break. Hop driven flavour explosion that screams, drink me.

SPEAKER_03 1:39

Are you an ambassador for this uh ballista?

SPEAKER_00 1:41

Oh, you know who's not an ambassador, as we were saying. Now don't start me on it. Oh, not going to. I'm gonna start it. You're gonna do it? Just because we're warming up to the beer. We're gonna have the beer first. Alright, we don't want to ruin we don't want to ruin ballistic ballistic beers moment. This is for you, ballistic.

SPEAKER_02 1:56

Hawaiian haze. Let's see how we get. We'll put it to the camera just so they know what what we're drinking there. Alright, cheers, boys. Cheers, lads. Another episode.

SPEAKER_00 2:04

I actually had a small sip accident.

SPEAKER_02 2:06

Every time. Every time. Mmm. Not bad. Not bad. It actually tastes bad. I can taste the honey in it. And the pineapple. Can you taste pineapple? Does it have pineapple? Yeah. I can't really taste the pineapple. I can taste the honey.

SPEAKER_03 2:22

It doesn't look like a pineapple.

SPEAKER_00 2:23

I don't think that is pineapple in it. It's wheat. Oh, it's Hawaiian, yeah. Hawaiian. No, it is. Is it Hawaiian?

unknown 2:28

Yeah.

SPEAKER_03 2:29

Why do you automatically assume Hawaiian with pineapple? Hawaiian phone.

SPEAKER_02 2:32

I may be wrong here, but if ballistic beer is around, make sure you comment and tell us that there's pineapple in there, please. Or maybe we've had too many ballistics. You've gone ballistic. I think I think it's actually a good beer. Don't mind it at all. Well done.

SPEAKER_03 2:46

Yeah, it's not bad.

SPEAKER_02 2:47

That's going on to the don't mind at all. We need a you know we need to do S tier.

SPEAKER_00 2:52

Yeah, Luke. Luke, we need to get a tier list going every week for this part. And we put the beers in the in the tier list.

SPEAKER_02 2:58

Yeah, the tier, S tier, A tier, whatever. I like that. Yeah. BC J. But obviously it's a personal opinion as well. And then right at the book. I don't mind. I actually don't mind this. So I'm gonna keep keep sipping on that. Yeah, okay.

SPEAKER_00 3:08

Anyway, but um I'm triggered.

SPEAKER_03 3:12

Yeah, who are you shouting out? Who are we?

SPEAKER_00 3:14

We have we have beef. We have beef. Why? So we get it, you know. Not often do we request collaborators, but you know, we thought we'd live a little for those listeners who saw the most um recent or one of the most recent ones. We collaborated with Larry and we liked the beer. We like Larry beer. We like Larry. Yeah. Larry beer was good. And Larry accepted on social media. Larry accepted our collaboration request. And we were cheering. And Larry waits like 24 hours and then removes the collaboration. Yeah. What? Like double standards. You know what I mean? You know, you're at Larry, we don't decline it, that's fine, but you don't accept it and then decline.

SPEAKER_03 3:54

Maybe the PF team was like, wait a minute. Wait a minute. These guys are way too on tap. Yeah. So you're not doing it. We're gonna find it.

SPEAKER_00 4:01

We're running it back with another Larry collaborator. Larry, come on in the minute. We're gonna be collaborating with Larry until Larry sticks it out.

SPEAKER_02 4:11

We wanna be friends, Larry.

SPEAKER_00 4:12

Like we want we mean this in a good way, Larry. We we want that collaboration request to stay. Yeah.

SPEAKER_03 4:19

We want to put that more Larry's here. Yeah, yeah. I do like Larry. I'm sure ballistic beer will explain. Right now we're all going ballistic. We're going ballistic. We're going ballistic for this.

SPEAKER_00 4:31

I love the colour of this. We can put them together. Maybe we can make ballistic and Larry become friends. We can put them together and there could be ballistic Larry. Oh like collaboration, no one asks for but everyone wanted. Larry. Is that is that the same? No. Yeah. Or everyone wanted, but yeah, it's not that the collaboration no one asked for everyone wanted. I love it. Not bad.

SPEAKER_02 4:52

Who picked these ones out? Oh well done. We've done well. And they're they're alcoholic, they're non, not like the ones we picked out the other time. Hmm. You picked out the other time. We thought we'd do something different today. We're back, obviously, after our you know, holidays, we're refreshed now. We're back back in the swing of things, which is kind of nice.

SPEAKER_00 5:11

I thought we were back in the swing of things after our holidays last episode. Yeah, we're the episode before.

SPEAKER_02 5:15

Yeah, we're we're we're you know, we're warming up. We're just warming up.

SPEAKER_00 5:19

Have you been on holidays also?

SPEAKER_02 5:20

Well, you know, I've just been warming up, really. Okay. Uh realistically. Yeah. Um but I thought we'd start the show something a little bit different. Wins for the week. You know, we do we do this in our like team meetings. You know, so I've sort of we do a team meeting in an episode.

SPEAKER_00 5:36

Bom bum boom. You're all have I missed the last couple team meetings?

SPEAKER_02 5:40

I'm just saying, you know, this is not a one one-on-one request.

SPEAKER_00 5:44

Well, Nathaniel and I actually are in the middle of a 21-hour one-on-one right now. We had one, yeah, we actually in the middle of 2 a.m. Bit late for it, I think. Anyway, but that's another conversation. Oh, yeah. All right, let's go. Wins then. Yeah, Nathaniel, you start us off.

SPEAKER_03 5:59

My win for the week, I think it's got to come down to working with a lot of more, a lot more motivated clients. I think um part of my job, obviously, as we've grown the business, right? We get a lot of um clients who I guess di dip in their feet, you know, want to get to know their borrowing capacity, but not yet I guess fully committed. And so sorting through that and I guess finding a system that's gonna say, all right, you know, is this something that you want in the next three to six months? Then let's get a game plan, or is this something maybe you know you want to work towards eventually? You know, I guess sorting that out and working with a lot more, obviously, um, you know, more motivated clients is is uh helps me as well. You know, been a lot more proactive this week, which is really good.

SPEAKER_00 6:46

That's my well, you spend a lot of time beforehand with people who didn't want to buy houses, huh?

SPEAKER_04 6:52

No. I think no, I'm just saying like my will in general.

SPEAKER_03 6:57

No, I get I get it. That's my new I think my new I just want to have a chat.

SPEAKER_02 7:00

No, there's resolution.

SPEAKER_03 7:02

You wanna have each other with me? That's all well and good. But hello, yeah, what you doing?

SPEAKER_00 7:06

That's a there's a huge difference between someone who like actually is intending to buy a house. And but if you're not in a position to, that's fine. But yeah, I get you between intending to and just knowing where you stand is a big difference. Yeah, it is as especially as a broker, it's like I'm happy to help you, but just tell me that you want to like start out the front.

SPEAKER_03 7:24

Yeah, because that's the thing, and like that's how I work as well. Like, full transparency always, you know. It's it's a funny thing. We're not like the bank, we're not a bank, we're not the bank.

SPEAKER_02 7:33

It's a funny thing though, because some people's perception they can think of of us as the bank. So they're like, oh, if I just don't tell them something, whatever. Yeah, yeah, exactly. That's fine. But um, we get results.

SPEAKER_00 7:50

I'll give you like a finger gun, it's like a I didn't mean to click it, it was more of like a bang. Are you telling me to go? Yeah, your turn. Yeah. Okay. I know how this goes, and we end up in like spending like 20 minutes 70% of the episode's like time allocation.

SPEAKER_02 8:06

Yeah, you're just talking about well, so sorry if we we're microphones and we know how to talk. Well, I'm trying to terrible.

SPEAKER_00 8:12

I'm trying to for one second.

SPEAKER_02 8:13

Oh, you're trying to control us. That that is something so controlling. I'm so controlling terrible.

SPEAKER_00 8:19

I reckon for once we should get through at least half of our itinerary.

SPEAKER_02 8:22

Okay. What was your win of the week then? It's funny because um my win is also a lesson. Oh heck yeah. You know, which is really cool because um and I want I want to shout out because this is actually pretty cool. This is what can separate people in the industry. Um, one, I'll tell you my lesson and then I'll tell you how it sort of fixed it. So I had a client all pre-approved. Great, it was awesome. And then um they uh sold their house and are ready to buy another one. They found the new house, got a contract, didn't think anything of it, you know, and uh sent the contract off to the bank. I was like, Yep, cool, no worries at all. You know, 10 years in the industry, just sometimes you go into autopilot and you know, but rookie era didn't check the postcode with that specific lender because we already had it pre-approved before, right? This is a win. This is gonna this is a lesson that will evolve which is gonna turn into a win. Right. Right? So um evolution. Yeah, so what what basically happened was I didn't check the postcode, it actually got declined from the initial lender because of the postcode. Because of the postcode, but then we had issues with the the reason we went to that lender was because of the borrowing capacity, right? So there was only then a handful of lenders ready to go. Um, and the lender we had to go with was is very, very slow. Right? Very slow. How slow? What's there? Like I would say, well, if you can use it in context, right? They're a smaller institution, they're not a lender, they're a mortgage manager. So your normal lenders, like your you know, your big four is probably gonna pick up the file in maybe less than 24 hours, depending on you know your. Because they got the team for that, right? But your smaller institutions, well, mortgage managers, they package the deal up, so that takes what three to five business days, but then they send it off to uh their external funder for approval, so it's like six to eight days on top of that. So it's pretty pretty hectic. But then I believed in this deal, and then also I was like, okay, double check the postcode everywhere. You wouldn't think this would be an issue, but so be it. Got the new lender, issue was the finance was due in a few days, yeah. So I was like, oh gosh, and then the issue also was the client was selling their house, so there was a buyer there, they were buying another place, and then that seller was buying another place, so it was all these parties involved. So one deal falls over each other. One deal falls over. One deal falls over, you got three to four property purchases falling over it. Yeah, yeah, yeah. Complete domino effect, right? So instead of going, you know what, this is not gonna happen, I'm just like, you know what, this is gonna happen. I called every single agent involved. Um, the the clients uh was selling with Danny from team, so well done. Um, Danny, on that, keeping that together on that side. Um Elijah from MGU um gave him a call and said, mate, help us out there. Yeah, um, I've got this deal, trust me, we'll make it work. And then kept them all in line, kept kept everyone up to date. And then um on the second last day of the new finance extension, um, we got it approved. But it was it was touch and go. It's so lesson was make sure you double check everything for me. Yeah, don't just assume it's okay. But then the win was everything kept together.

SPEAKER_03 11:46

I think on top of that, another win is like you have that relationship with the agents as well that you can, you know, it helps, it helps, and you know, because you have that network already kind of you know, it helps give reassurance.

SPEAKER_02 12:01

Danny's okay, but uh you know, Elijah he luckily Danny sort of called him as well and go, Hey, I know Danny's good. But um the key there was I think just communication. Yeah. So making sure you just keep keep all that up and everyone was happy.

SPEAKER_03 12:15

You know, one phrase I took, I think from the end of last month, it was one of like the PD days that we went to. It was like the saying like communication is the oxygen to any relationship. That's true, that's deep. That hit I was like, fuck yeah, so true, right? Damn, wow. Well, no under our relationships. Business, business, business, business, business.

SPEAKER_01 12:37

What about you, big dog? Business, business. A big horse. A big horse.

SPEAKER_00 12:41

Um my win for the week, I'd probably just say like my uh diverse business generation. It's just nice to have um you're getting business. Yeah, I'm not how I'm getting business, what what business I'm getting. So like not not just having like a single essentially like a single flow. So I'm getting like I think I onboarded like seven clients this week, and of that I had like self-managed super fund, um, like asset, investment, learning out of trust, self-like pretty much just like I don't think anything was the two same things. Yeah, that's cool. Um it's just good like it's just nice to think like, oh cool, I'm not doing like I'm not limited to a single market. That's cool.

SPEAKER_03 13:32

I'll keep you on your toes, hey.

SPEAKER_00 13:34

Always on my toes, mate.

SPEAKER_03 13:35

Heck yeah.

SPEAKER_02 13:36

Like a ballerina tip tone everywhere.

SPEAKER_03 13:38

You're really good on your toes.

SPEAKER_02 13:39

I always respected ballerinas for being able to what's what's that dance for the pirouette. Can you show us?

SPEAKER_03 13:45

Yeah.

SPEAKER_02 13:46

You know a lot about it, obviously.

SPEAKER_03 13:47

Yeah.

SPEAKER_00 13:47

Why do you know so much about it? You reckon they do that. You reckon they break their toes when they do that? No, they put blocks. So it's they put um square blocks at the bottom of their um. They do. At the bottom of their shoes, there's square blocks and they stand on the square blocks. Is that why you're feeling like it's like? Well, like at the front? Yeah, so at the front of the uh shoe, there's square blocks that they stand on to do it. Yeah, it's actually grilling. Yeah, I'm right, yeah. Yeah, they like like this. They curl their toes in, isn't it? But I might be wrong. I I was under the impression, maybe someone like lied to me, but I was under the impression that like ballerinians put like little tiny square blocks at the bottom and they can like balance on that, and that's how they get like that really tippy point like looking.

SPEAKER_03 14:26

No, their shoes, you see their shoes they build, it's like yeah, but there's is there not a square block at the bottom? No, no, no.

SPEAKER_00 14:32

And I don't know. We might have to oh we can find it.

SPEAKER_02 14:34

Do you know those shoes? Do you know Michael Jackson when he did that? Do you remember you probably won't remember. Yeah. Was it forwards? Like he leans forwards. He leans full forwards, and that's the shoes that lock into the ground. Yeah, yeah. But um as they say, the wins and and lessons we've all done, you just can't beat it, can you? Yeah. Sorry, Michael Jackson joke.

SPEAKER_00 15:00

We need one of those like sound effect boxes, the crickets. I was gonna go crickets if you want to clap. I will clap.

SPEAKER_03 15:06

That's one of the trending topics you just say in this Michael Jackson. Michael Jackson.

SPEAKER_02 15:14

Yeah, that's good. Well, so what's the lesson that you've learned? Because I I've shared my have you learnt anything?

SPEAKER_00 15:20

Yeah.

SPEAKER_02 15:21

What have you learned this week?

SPEAKER_00 15:24

Uh oh, it's not I would say more of a uh reinforcement. I like that. You've been reinforcing something that I'm aware of, but sometimes you just need to be reminded of, especially after the holidays and you're getting back into it. Yeah. Um, I think just communication, like it's always the biggest thing. It's communication. And like especially when you're like if you've done all the work and you're waiting on, say, like a bank or you're waiting on another party to give you the information. Yeah. Um, like that kind of thing. It's just important to tell the client. I had another one which is cool, like a um It's good. So what's the reason again? I don't know.

SPEAKER_03 16:08

What's a reinforcement? You've been reinforced by what so what not? Just communic just communicating, like where you there's a good saying I remember about communication. Yeah, tell me. Go. Communication is the oxygen.

SPEAKER_02 16:21

You go on swinging back to that again.

SPEAKER_00 16:26

It's living in the moment. We gave him too many props on his phrase and that on his quote.

SPEAKER_02 16:33

Now he's just And well Nathaniel appeared. Is a Buddha over there? Gandhi, that's it. I think it it is funny though, because like if you're a new to industry broker, experienced broker, like you drop you drop that at all times. Like it will either move you forward in your industry or completely crush you. Oh well. Communication, like in terms of if you don't do it. And that's that's the secret. Like there's no um there's no magic pill to be successful. Like it's work hard, communicate. Did you say there's no magic pill to success? Well, you know, there's not, but you know, there's not. It's just working hard and staying focused. Yeah.

SPEAKER_03 17:23

Yeah. Yes, yes. Anyway, my lesson. Yeah. Work up to work. Just kidding. Work more than three days. Um my biggest lesson is probably um maybe put yourself in the client's shoes. You know? I think on top of what you said, every client's gonna have a different a different, I guess, level of a need, you know what I mean? You know, some people want that everyday thing to update. Some clients just want, you know, like an end of week kind of thing. Yeah. And so just like it's just pivoting and just be like, alright.

SPEAKER_02 18:11

So would you think that setting the expectation at the start would be ideal for that? Yeah, yeah, yeah. Yeah. Yeah. It's true. I mean, you're we're all human after all. Yeah. Especially once you get busier and you've got like, you know, 30, 50 clients that you're dealing with at a time. Yeah, exactly. You get one client that's like, I need to, yep, it's uh five o'clock, I need an answer right now.

SPEAKER_00 18:31

This is why we and uh again, yeah, you're 100% right, comes down to you should always the broker should communicate. Communication. The broker should communicate this the best. You know what? But this is why we establish when we do the initial appointments, like why it's established, whether you're buying now, whether you're buying, like whether you're buying now, whether you're just kind of having a look around, like what your kind of urgency is. Because if you're just sitting there trying to get like a rough borrowing capacity and like things come up with us, right? And we lose the day of the week or whatever happens, we need to make sure that we're if someone's sitting there going like, I'm trying to buy this weekend or I'm on contract, like they're the ones that need the priority. Prioritizing. And it's not that we're trying to neglect anyone, but like if you're you're still equally important if you just want to know where you stand on a lending capacity, but you have the luxury of like it's not gonna change anything over the weekend for you, whereas that's still three days out of a finance contract that someone's losing that's like actually buying a house. So that's why we're establishing that kind of stuff. Yeah, yeah.

SPEAKER_02 19:30

So, what's the most important thing here?

SPEAKER_00 19:32

Do you think just can we have like the rainbow effect? Communication, oxygen.

SPEAKER_02 19:40

He's loving it, he's loving the oxygen quote. Yeah, it's good. No, that's great. I love it too. Um I heard that communication is actually the oxygen.

SPEAKER_00 19:51

I just had a purple circle thing and I spoke about it.

SPEAKER_02 19:54

Well, you did. What did you actually for those that didn't watch it or listen? What did you say? I spoke about communication.

SPEAKER_00 20:01

Oh.

SPEAKER_02 20:03

Okay. That's cool. Any challenges this week? Like, have you come across like actually here's the thing. I know this has changed in the market so much. I do a few of it, I know you do a few. But um co-living. I'm doing one right now. Like um I bought the land and and just want to construct a co-living, I think five five bedrooms.

SPEAKER_00 20:30

I'm on it, so co-living is a very unique type of property that a lot of banks won't touch.

SPEAKER_03 20:38

For the people that don't know what co-living is.

SPEAKER_00 20:41

Yeah, so it's like a very unique type of house, and basically what it is is typically you've got individual like every room has its own lock on it, every room has its own ensuite, there's like a shared recreational room, like sometimes they have individual kitchens, most of the time it's shared kitchens, um, that kind of thing. And rather than leased out by the um, like as a single tenancy for the whole house, so you know, family of three or four move in there or whatever, it might be a seven or five or eight bedroom house leased out by the room. Now, what comes with that? And that they're usually in places like around universities or around uh like mining towns or that kind of thing. Um does it have to be like brand new though?

SPEAKER_03 21:25

Can it be like a renovated home in the room?

SPEAKER_00 21:28

So yeah, there's well like co-living property. It depends what like it has to have a council approval to be co-living property. So as a DA title, like a yeah, yeah, so you have to have approval for it to be that and uh but what it is mainly so is that um you you rent out, like I said, like all the rooms are rented out like individually, right? So you can't just um like rather than getting say rather than getting say six hundred dollars a week, you might instead get one thousand six hundred a week, which is very accurate for like what actual difference in rental income. Is but the value won't increase as much as like a stand property in most cases, and also it won't um that you can't just like sell it off as easy because of that kind of unique buyer base.

SPEAKER_03 22:11

Yeah, it's pretty specialized security.

SPEAKER_00 22:14

But um it it definitely has gotten a lot more popular recently, and in doing so, there's been a lot of changes to the lending. Yeah. So one of the big things is like, for example, you spared out a 90% loan-to-value ratio for lending on it, which is like what debt versus property value is. Yeah, so essentially like if you if you if you're building a and this is for construction, right? So if you're building a million dollar house and land for like between buying it and then building the the co-living res the dwelling, you used to be able to lend 90% of it, so up to nine hundred thousand, whereas pretty much now across the board it's captured about sixty five percent LVR, which is crazy because I think what's happened is the market got very saturated with this kind of property.

SPEAKER_01 23:00

Yeah.

SPEAKER_00 23:00

Uh and lenders have realized because lenders have all got different kind of books, right? With it, you know, you've got your like X amount of first home buyers, X amount of self-employed, X amount of LVR, X amount of that. I wonder if it's like, do you think that if the resale of those kind of properties was easier, do you think they would have restricted the I I think what happened is previously previously it was a lot more of a niche market. Yeah. So if you had a house that was generating 1.6k a week rental income, like doesn't matter that it's not really livable in as a family and you can own like that house does not ever have another use at this point. Like it will only ever be a co-living house. Yeah. And like, you know, if the mining town dries up or if whatever happens, then like you're in trouble. But previously it didn't matter because if you're buying a property that has 1.6k a week, 1.7k a week for seven, eight hundred thousand dollars, then the rental income is so outweighing, like similar to NDIS, right? Yeah. But now similar restrictions, by the way, as well to NDIS. Yeah. But now, because of the fact that so many people kind of got on the hype train for it, you're now in this situation where, like, beforehand, something goes wrong, it was not really that much of a risk for a lender that can do 90% because they can just put it on the market and sell it. And it's just unique property that just anyone can come in and like someone will come in and buy it because the investment opportunity is so good. But then now, because there's so many of them and they're like kind of popping off so much, it's no longer like this unique security that can just sell. This is my theory on why they've loaded all the LVR. So all of them have like out over-leveraged themselves for the high L VR on it.

SPEAKER_02 24:39

I think anyone that like before all the restrictions came in, I reckon they'd be Livid and Livita Loca like Ricky Mun.

SPEAKER_00 24:48

Yeah, exactly. You put in a 10% deposit. Livid Livida Loca. Yeah. Uh if it's a 10% deposit for that kind of income, it's insane. But yeah, it's it's it definitely got a bit saturated. It's still a f like if you've done it right, and I still work with a lot of people that do it, yeah, but like I think it is one of those things that you probably shouldn't be putting just 10% in to get. Yeah. And like you don't want like the whole point of them is it's a unique, like, rental income specific security. You don't want this security that like everyone's dog has access to it. Oh, 100%.

SPEAKER_02 25:19

And like you obviously get the right advice, accountant, financial planners. There's so many different styles of investment opportunities out there. Like I just recently helped Lovely Lady um purchase uh a display home, which has also got quite a few restrictions alone. But they've got some pretty big leases on it, like I'm doing leasing it back to the developer. Yeah, yeah. It's pretty cool.

SPEAKER_03 25:45

But the return on that actually is not bad.

SPEAKER_02 25:47

Yeah, crazy. Like I think it was 7% on that was like bringing in, I think it was 136,000 a year, which you know, for three to five years, yeah, pretty much pay off the mortgage. Yeah. But again, you've got to be pretty similar to um co-living, you've got to have that cash backing to be able to put that in and then you know, because the banks will usually cover maybe 80% most cases.

SPEAKER_03 26:15

I don't think the banks have taken too fair. Compared to co-living, obviously. Yeah, to co- Yeah, I think co-living's a lot more restricted.

SPEAKER_02 26:22

Co-living definitely is, but it's just to give give an idea of the styles of investments that that have been restricted as well.

SPEAKER_00 26:28

What do you think is like right now the most restricted kind of lending? We got a few here. We got a few here. I think co-living's up there. Co-living now. It's funny because like 12 months ago, co-living definitely wouldn't even be close. You could do, like I said, 90% construction co-living. Like, yeah, definitely not 12 months ago, but now co-living's up there. 65. I think we draw the line here. Yeah, co-living construction is very different to co-living existing and established, so there's two different LVR tiers there. Constructing co-living, definitely one of the most restricted. Um like small service apartments to a degree. Yeah.

SPEAKER_02 27:12

Um we've got it's funny because like as a as a borrower, as a borrower, right? If I if I didn't know any of this stuff, I would just assume that, oh, I like that house. Such a good investment. You know, I like that unit. Sweet.

SPEAKER_03 27:29

If I was just a you know, like a Joe Joe Smith down the street, I'd be a bit discombobulated by you know the variety of securities that are available to investors as an investor. That's correct.

SPEAKER_02 27:41

I like to keep it simple with the clients, and I say, you know, to and you've probably heard you guys have probably heard me say this like a thousand times. It's like for my clients, it's how much deposit do you have? How much income do you have? Like borrowing capacity versus you know, skin in the game. Make synergy, right? Nice and easy. And um that's but then behind the scenes for us, there's about two thousand, three thousand variables that could come in between what's actually happening there.

SPEAKER_03 28:08

Yeah. But interesting fact, actually, I had a client speak to me about you know, like the the online cat like borrowing calculators and stuff like that.

SPEAKER_00 28:18

And like, oh I love them, they're so accurate. Like, I'm just saying like that's what I don't even know. I don't even mind like these days a client sending them. I just on the phone, like, just have I'll just enter it straight into the bank's cover and then do it in a formula.

SPEAKER_03 28:33

Send me a screenshot of that.

SPEAKER_00 28:35

And I'll send that to the bank and they'll be like, oh, I approve it. Oh they've done the calculator there. Anyway, I understand that every metric of this application is failing, but they did the that overrides everything. Oh my goodness. Approve. But why do you waste so much of my time sending in information? All you could do is mundane page clips and their statements. All I needed was a screenshot of the calculator. God.

SPEAKER_02 29:06

But but to be fair, that's why I think what 75% of people now are using mortgage brokers? Nearly 80? Damn big. Yeah. That's crazy. There's obviously valid reasons for it because you don't you don't think about these things. What type of security? Have I been in my job long enough? Do I have enough income to be able to get what I need? Have I got too many kids that are reducing my borrowing capacity?

SPEAKER_01 29:29

So if they did have too many kids, what would your advice be? Feed them. Be feeding them. Crazy.

SPEAKER_00 29:38

My broker tells me we have too many kids.

SPEAKER_02 29:41

You guys know that I've got a few kids, so um, I you know, just work hard. That's all you can do. Work hard, adjust, keep keep going. Exactly. No, look, it is true. What are you gonna do? Like you either go, I'm gonna I'm not gonna live my life the way I want because the banks tell me what my capacity is. You live your life the way you want. And I live how the bank tells me that exactly. It's like, yeah, well, this is my lifestyle. What can I what can I lend? Yeah, that's it. If that's not enough, there's other banks as well. And that's that's what everyone needs to realize. It's not just the big four, like you know, uh mum and dads, you know, old generations are like, oh, you've got to go to your CBA's, you know, your Dollar Mart account. Yeah, yeah. That's not like that anymore.

SPEAKER_00 30:24

It's like there's a dollar mart scandal, you know. Was though. And stop this is not no, I don't think we should be. Are we able to talk about it? No, we're just I don't want to talk about that because I don't want to get in trouble.

SPEAKER_02 30:34

We don't like shit talking in the banks.

SPEAKER_00 30:36

No, no, it was definitely not yeah, it was like the big thing.

SPEAKER_03 30:41

What is it? Tell me what is it? No, but it I'll tell you off camera.

SPEAKER_00 30:43

The Dollomites but what you know the Dollar Might account when you were younger. And you take like five bucks a school and deposit into your Dolomite account. It's very clever though, to be fair. But it it wasn't intentionally done in what ended up happening, I don't think. Yeah, I'd like to hope.

SPEAKER_03 30:58

But I think business back then also was totally different. It's not like it is now, yeah, it's totally different now, especially as like big organizations.

SPEAKER_00 31:05

Well, yeah, I because I used to look at Panthera and and I had to deal with like the other side of it, and it was crazy.

SPEAKER_03 31:11

I went to the bank, I remember one time. When? Just recently. How do you go to branches still? Why? Oh yeah. I don't think I've been in a branch for a long time. Um and this lady was talking to the teller saying, I've been uh a customer of your bank for 35 years.

SPEAKER_02 31:28

You sound like um what's that guy's name? Who? David Atterbra. Yeah, it's like he just rocked up to do a wildlife story at your branch.

SPEAKER_00 31:38

You know what? Uh the branch. Um you know, you know what is crazy though.

SPEAKER_02 31:46

Oh no.

SPEAKER_00 31:47

I I feel bad for clients when they talk about this because like it's always the loyal clients of the bank that's so disappointed because it's like I'm sure I can like this line here. How many times have you heard it? Yeah, I'm sure I can get a good interest rate. I've banked with them for 10 years. I'm like, brother, it doesn't wait the complete opposite. Like, I'm I'm sorry, my friend. Like, yeah, like they already got someone. They got you unlock already. You're getting you're getting the muddy, you're getting the sticks. But odd odd Jimmy Jones over there, who has your first time buying never banked with you to bank and is new to business, he's getting the bees knee bank.

SPEAKER_02 32:24

But isn't it sad though?

SPEAKER_00 32:26

New business over the loyalty is like it's a bank mop.

SPEAKER_02 32:29

Yeah, it is, it is, and that's like, and that's obviously why we're there, right? But you know, to keep things competitive, and that's why you know the the broking industry came out. Can you elaborate on that further? No, I don't want to communication. There's oxygen. Uh a severe lack of oxygen right now. But uh it's yeah, it's funny. So should we do a rapid fire round? What is that? You gonna lead the way on this? Nope. Oh, over to you, Nathaniel.

SPEAKER_00 33:00

Nathaniel lead the road.

SPEAKER_03 33:00

Rapid fire.

SPEAKER_00 33:01

Rapid fire round.

SPEAKER_03 33:05

Doop doop doop doop doop doop doop doop. What's this rapid fire round? I'm not sure. You're the one running it. Let's go. All right. Rapid fire round.

SPEAKER_02 33:14

What was your thing? Remember, we were talking before and it was like, just don't forget your thing. Oh you said yours before. I'm not sure if you're not going to be able to do his.

SPEAKER_03 33:23

What is my thing? Well, but you already said it. Which one?

SPEAKER_00 33:25

No, we no, because you guys are talking about um Ricky Mon Liv Livetta Livida Vida Loca.

SPEAKER_03 33:31

Yeah.

SPEAKER_02 33:32

You know what's interesting, actually. I so someone was telling me the other day, because they watched our podcast. I don't know the name of the song, that's why I said it. And they were like, Yeah, Dan, you know, we love we love you guys because we know who you are, but I don't think anyone else knows that you're you guys are really dry. You got really dry humour. What did you say before that you guys are really?

SPEAKER_00 33:56

You said you guys are always really drunk. You're drunk. No, you're drunk. No, that's what it sounded like. It's not, we're not really drunk, we got dry.

SPEAKER_02 34:02

And I was like, I don't understand what they mean by that. Do we have dry humor? I don't know. I was like, I was like, oh yeah, yeah, yeah. So we should do we should do joke of the week. I love jokes. I've got a joke. Go on. The one I told you.

SPEAKER_03 34:17

Oh yeah, I love that one. Go on. Hey Baxter. What's the difference between what is it again? What did you think? It's your joke. Oh yeah, you've got to be good. What's the difference difference between a goat daddy and a matter daddy? What is the difference between a goat daddy and a matter daddy? Between what? Do you know what a daddy goat is? What's what? You wanna say the joke again? What's the difference between a goat goat daddy and a matter daddy? Are you familiar with any of the two? No. A goat daddy.

SPEAKER_02 35:03

Do you know what a goat daddy is?

SPEAKER_03 35:05

Can you guess what that would be?

unknown 35:07

No.

SPEAKER_02 35:07

And do you know what a matter daddy is? No.

SPEAKER_00 35:11

What? I don't know. What's what what? I I don't know the answer to either. You don't know what I don't get it.

SPEAKER_03 35:19

You have to say it's part of the joke. Oh, what's a goat daddy? Okay. And then say the other one. A matter daddy? Nothing. What's the matter with you? It was so bad.

SPEAKER_04 35:36

Did you get it?

SPEAKER_02 35:37

Did you get it? It's so bad. It's so bad, but it's good. Did you get it? I turned it to dad. What the hell? It's so great.

SPEAKER_01 35:49

That's a waste of time.

SPEAKER_02 35:50

Oh no, that's what I'm saying. I loved it. It's funny how bad it is. Yeah, bad. Bad. I love a good dad joke. Oh good. Please send me dad jokes. I'm awesome. Utterly ridiculous.

SPEAKER_03 36:05

Do you have a joke?

SPEAKER_02 36:06

Yeah, I was thinking that's a uh sheep joke, isn't it? Oh, goats have udders as well.

SPEAKER_03 36:11

They do, I have another. A goat cheese. Isn't that that's your thing, the dad joke of the week? I love dad jokes. Do you have a dad joke of the week? Oh, what's that one that I told you that was so good, though?

SPEAKER_02 36:20

What was uh Save Us, Dan? Can you tell me? I forgot it's not like it used to be. I can't remember it.

SPEAKER_00 36:27

It was so it was so bad. I sent us a voice message to Dan, it was outrageously bad. It was like, um I'll circle back to this when I remember it. But oh, it was so terrible.

SPEAKER_02 36:38

What was the um Harmony Told Me One? And I think it was uh Oh, what did she say? Oh no. Oh yeah. Why wasn't the goat oh wait, what's it I'm trying to remember? Do you remember what I'm talking about? Do you remember this joke? I think I told you. So the goat and the um Oh wait, the goat and the cow weren't getting along. Why do you think that is? Because they're in a bad mood. A bad mood. Something like that. She said a lot better. But um, I love those jokes. Oh. You know, like it's kind of like that comment said, Oh, I'm not gonna get that minute back in my life, you know? Yeah, nobody has heard that comment.

SPEAKER_03 37:34

I know who's heard that joke. That's so good. You know, huh? You know who's told me that. That's so good.

SPEAKER_02 37:40

That's good. So we've all had a good good week, good wins, good uh lessons learned. Key. It sounds like the key of today's podcast is uh oxygen. Oxygen. Oxygen. I've demolished this. Have you? Oh yeah, shout out to ballistic. Yeah. Looks like this is the new oxygen. Um and I guess the key word for today is communication.

SPEAKER_03 38:02

Communication.

SPEAKER_00 38:03

Would you like a little a game wrap-up?

SPEAKER_02 38:06

Yeah, we'll do a game.

SPEAKER_03 38:10

Okay. Right. If I mean that question you uh you were gonna ask as we were walking in, but you were like, I'll save it for the podcast. Yeah, I f oh yeah.

SPEAKER_02 38:26

Oh yeah, okay. It's a very serious question. Okay. So what would you be called if you were a pirate? What would your pirate name be? Or should we make up one for each other? What would Baxter's name be? It'd be like Ba Oh no, thinking goats.

SPEAKER_03 38:48

You didn't grow up in a Barkstur.

SPEAKER_00 38:51

Barkster. Nathaniel or like Baxbeard. Well, how do you know if you're a pirate?

SPEAKER_02 38:59

That's the thing. That's the question. How do you know if you're a pirate? You just are. You just uh I got I'm done now.

SPEAKER_04 39:08

Nathaniel would be like I don't know.

SPEAKER_00 39:13

What would your pirate name be? Um I have no idea. I wish I could think of something. Oh no. No. No, I can't. No. That's good.

SPEAKER_02 39:26

What about yours? I don't know. Alright. I don't know. I just wanted to say the pirate joke. That's kind of where I was leaning with that. But um, no, happy days. No, it was good. Just remember today's episode communication. Okay. Until the next one. Thanks. Bye-bye. And that's the end of today's episode, guys. Thank you so much for listening. Don't forget to like and subscribe. And I hope you learned something today.