S1, Episode 7: How to build a property portfolio in your twenties

[PODCAST STARTS]

(00:00) People just can't fathom. The marketplace will then continue to get more expensive. Of course, it's not easy. Anything that is easy is generally not good for you anyway. But it's not like this thing that is out of reach. You have a choice to make. You either choose easy life now, hard life later, or hard life now. Easy life later. And we have that choice with everything in life. I'm a bad boy if that is bad, because I've got lots of it. Welcome to these four walls, the podcast that talks to real buyers and experts about the hardest, weirdest, and most surprising parts of buying and owning a home in australia. We'll help you figure out what's going on in the world of

(00:30) property and what to do next. Welcome to the whole world. I'm danny. This week's guest is one of our biggest names in aussie property jack henderson. So they say. So they say. Interesting. Okay, well, we like to start our podcast with a listener letter. So this letter is actually from jordan. He's 26 and from inner west sydney. So he's probably happy at the moment that the bulldogs are on top. But let's see if that stays. Go the doggies. Um, dear these four walls. I'm 26. I work full time in comms. Comms. I've got around 18k and savings. I rent with friends and I

(01:03) genuinely feel like I will never own anything. The market just feels totally cooked. Yep, I can hear that. Um, every time I scroll, it's either a 1.5 million fixer upper in dulwich hill, or pictures of friends in front of a sold sign property which I know their parents bought for them. I would love to hear from someone who's actually done it. So jack, you must hear this a lot. My advice is get some rich parents on foot. Start there. jordan. Yeah. So, um, look, I'm someone who, uh, you know, I was very self responsible, so I could be making the wrong assumptions. But I'm

(01:38) assuming if you're living in the inner west, you're living with friends. You're probably not sitting at home every weekend, you know, twiddling your thumbs and being responsible with your money. I'm assuming you're down the local, having a few schooners and enjoying life. Probably spending too much money. Excellent. As you should. Yeah. I'm all I mean, you have to choose, right? In this world, we don't get to do everything. So, um, you know, for someone like that, it'd be like, what can you currently budget? Um, people think, do they have to budget for their whole lives? But they just have to budget for a period of time until they get the capital required to buy their first property? Um, and it's highly unlikely that you're going to be able to afford the inner west for your first

(02:11) property rights or whatever. She'll probably start looking there. That's what I mean. All get rich parents. You've got the choice. Um, so, you know, we help a lot of first home buyers. It's not our core market of client, but we help a lot of them. Um, and I can assure you, none of them are buying properties where they're going to live forever. They're buying properties where they can afford. And if you're in sydney, that's probably not within, you know, the sydney metro region. It could be the central coast, it could be newcastle, it could be northwest sydney, it could be an apartment over a house in the inner west. Um, but the key is just to get the 5% deposit that you

(02:42) need. You won't pay lenders mortgage insurance, you won't pay stamp duty, and you just get into the marketplace. But that only comes through sacrifice. And that's not a new thing. You know, like, I'm assuming all of our parents. I know my parents, they didn't just go, oh, properties cheap today, I'm going to go buy one. It's like that sacrifice that's it's required to get into it. So probably not what he wanted to hear, but that's the reality on a bulldogs game. But you started you started young as well. So like, what sacrifice did you make or how did you start? And um, the sacrifice that I made is I got kicked out of school when I was 15. Wow. Um, and, uh, and I lived at home. Can we hear the

(03:16) backstory of why you got kicked out? Yeah, well, I just didn't want to be there, unfortunately. Yeah, so I wasn't selling cigarettes or, you know, getting in fights or selling drugs or anything like that, although that would make for a better story. But I just didn't want to be there, so I was interrupting. Teacher didn't like me. I was a smart ass. All that stuff, all that stuff. The good thing is, now in life, when you're a smart ass and you're good with marketing, it makes you money. Back then, it wasn't a good thing. Um, so yeah, I, I left school at 15. I, you know, had nothing to spend my money on because as a 15 year old, I was living at home like most 15 year olds are, didn't even have a license. So, like, I had no real expenses. Um, and I saved nearly all of my money from 15 to 18,

(03:52) and I got to 18. My mum and dad were like, hey, you've got all this money in the bank. Go buy your first home. So they took me into the local anz, um, you know, bank and jodee was the bank managers. I need to get jodee on a podcast, actually. And, um, you know, I got a loan and I went and bought a property, and that was it. Like, it wasn't revolutionary. I wasn't this big investor. And, you know, I didn't really have these big, hairy, audacious goals back then. I just bought my first property because I saved up money. Um, and I obviously was in a good savings habit, but in saying that I didn't go overseas, I didn't travel, I didn't, you know, do the whole schoolies and, you

(04:25) know, gap year and all that, like I worked from when I was 15 years old, full time, six days a week in construction. Yeah. Um, so that's it wasn't revolutionary. Awesome. But, like, so you had your parents, like, they helped you and they were backing, as in, not financially, but, like, support if you look online, apparently, I got super rich parents. There you go find them. I'm like, um, no, my mum and dad are like, white collar, blue collar, whatever you want to call them. They work hard. Dad was in construction. My mum was, you know, in admin slash hr, um, and as most parents do.

(04:56) it's like you're responsible if you're telling your child to be responsible with their money, which is what they were doing. Like, you got all this money in the bank. You're an 18 year old besides the money part. How did you then navigate the whole experience of getting the mortgage, finding the area to go all out, getting the mortgage? I didn't really understand what I was doing back then, so they took me into the anz, which is where they had gotten their home loan from. Yeah. Um, so, you know, I signed a few documents and got a pre approval and all the rest of it and, um, you know, and then, like everyone does, I researched, I listened to podcast, I watch youtube

(05:27) videos, I read books because I was genuinely interested in it. Um, and I happened to find a guy by the name of chris grey, who I actually had breakfast with this morning in the office. Um, chris was much younger and much skinnier back then. He's, uh, he's now fat, retired and bald. He's about to say. He's saying chris is fat now. He like, he loves when I say that. Sorry, chris, but he's an absolute legend and I have so much time and respect for him. But, um, he did this talk which was recorded and put on youtube at, um, a cpa event. So for accountants. And he virtually just spoke about

(05:57) how he was an accountant for deloitte, and then he used his income from deloitte to go and build his portfolio. And then his portfolio retired him at 31. And all of a sudden now he's got a supercar and a yacht in the harbour. And I was like, this guy sounds like jack anderson. Work until 31 and retire. I love that. Um, so I just was obsessed with him. And I started to go to his seminar. So I'd catch the train from windsor, which is in the western suburbs, into the city, and I would go to all of these buildings, like we're sitting in now and watch seminars and listen to people. And and that was it. I learnt, you know, just like if you want to go to europe, you go, where's the best

(06:28) places to go? They make an itinerary, you know what I mean? Yeah. And now we've got this thing called chatgpt, like game changer, a gpt. Can you please help me with a savings plan? I'm 18. I work in this job. I live at home. My expenses are. Why? How can I save my deposit? It'll give you a better answer than jack anderson. Well, I love that. And I was actually stalking. I will admit to it on your instagram. And you had this whole page from there on. Yeah. No, you had this whole piece around being obsessed and like having a passion and just obsessing and going after it. And I think you've kind of summed it up there with the whole property and how you just got obsessed and you

(06:59) did everything to make that come a reality. Yeah. And you know, that obsessive nature, everyone has it in them, right? Because like, when you want something, whether it's the new car, whether it's, you know, you're a new mum and you're obsessed with your baby and like, being an amazing mother or, you know, whether you're male and you're into bodybuilding or whatever, it is, like everyone has their little things that they're obsessed with. So if you want to buy a property, the reality is you can become obsessed with something that you're interested in. And all of a sudden those things become a reality. And you started with one, obviously, and it grew from there. So what did you see in the market or what changed to get you into that journey? I wanted to be rich. Love it. That's

(07:34) it. Like anyone who's like, oh, I want to invest in things because I enjoy investing. It's like, no, I wanted to be rich. That was the reality. I was like, I didn't want to be poor and I wanted to be rich. And I was like, I'm not very smart. I didn't finish school. Chris seems to make property look easy, so actually it can't be that hard. Just follow chris, become obsessed and like, I know it sounds funny, but that was legitimately it. It was fine. Someone who's been there and done it. I was naive enough to listen to everything that he said, and I'm now here. Wow, I love it. That was literally it. And I tell everyone the same thing. It's like, go find someone you resonate with. Jack henderson doesn't

(08:07) resonate. Like, you know, not everyone resonates with me, which is fine. But there's lots of people out there that talk about the same stuff that I talk about and just walk the same path that those people have walked in. Yeah. Um, and it's a lot easier. And just to give people an idea, what was the first house you bought? Can you tell us the price, a suburb? Yeah, it was an apartment. Um, it was in coogee. It was, uh, unit one of 74 broome street. Oh. So I've done videos and stuff on it. I paid 720 grand for it, which, you know, people are like, oh, it's a lot of money for your first property. It is and it isn't. I had no expenses. I lived at home. Um, and that was the first property that's now

(08:41) worth, you know, 121314, I don't know, do you still have it? I still have it. And now I actually did a video on it today. I've just turned it into an airbnb to try and test out how that goes. Um, and then from there, 18 ish months later. Um, I then got my second property, of which I used chris's service. He was a buyer's agent, so he bought my second property in maroubra. Another two bedroom apartment. Um, obviously I was young and I was progressing through my my career, and I was making more money than I was two years prior because I'd, you know, become older and better. Um, second mine.

(09:12) and then I bought my third one, which was in barr beach in newcastle. All apartments, not houses. Um, and then I sort of hit a serviceability limit on my income. Yeah. You know, the banks wouldn't lend me any more money. And remember, that was a declining interest rate environment. So serviceability was increasing with the decline in rates where over the last sort of 36 months, it's been the opposite. The serviceability has been getting eroded as rates have increased. Um, and then I spent 24 months in newcastle and, uh, I bought and sold the property. Like an off the plan sort of thing. Where I had it was covid, and I knew a guy who cut a good deal with the developer, and

(09:48) we put a $5,000 deposit down only, and then I sold it before we settled on it, I made some money. It was luck. It wasn't strategy. And and then. Yeah, I've now I've bought lots more. Yeah. But it's all, it's all due to income and having the capital behind me now. Right. Like, yeah. There's no secrets to it. There's lots of different strategies you can use to maximise your portfolio, but at the end of the day, it's. How much money do you earn? How good are you with your money and having accessibility to to debt to be able to buy property? I've got two thoughts. So the first one is actually a personal one. When I started doing I actually went down the rent vesting route as well.

(10:23) I still rent, and I had this weird stigma in my head that I never wanted a unit or a townhouse because I didn't want body corp, and I just felt like the dream was a house and it was like such a weird stigma. And in the end, I ended up getting a townhouse as part of a body corp. But it was some weird, like, I don't know if you found any other stigmas that people have as first lots, but it was. I was like, I don't know why I'm getting so stuck on this point around having a body corp. I read this book. I actually listened to this guy talk and then I read the book. His name is derek sivers

(10:55) and he speaks about this concept and the book is called useful, not true. And it's all about that stuff. It's like these beliefs we walk around in life with that we believe it's actually true. Like body corp is bad. No it's not. That's a belief you have. Some are bad, some are good. Just like some houses are good and some houses are bad. Um, so there's lots of stigmas that people have. Just like, you know, owning a home is more secure or safer than renting, which is just complete bs. I've never been kicked out of a rental. Um, but people just walk around in life with that because that's

(11:28) the truth. But the good thing about that is lots of people are obsessed with property, and they want to continue to buy it. And the more people that want to buy property, the more expensive property gets and the more money jack henderson and people like me makes. Excellent. That's what we love and like. The funny thing on stigmas is I was actually in melbourne recently and I was talking to some girlfriends and they were they basically just had in their mind and in good money. Good serviceability. Like have deposits. And they were just like, oh, it's probably like 5 or 10 years away before I can even start thinking about it. And I challenged them and said, where has this

(12:00) come from? Like, like, have you spoken to a mortgage broker who's told you one? Yeah. Happened to be employed by one. Um, but their answer was, oh no, I just like that's what I've assumed. Like I need the 20%. Like, don't you need the 20%? And I was like, it is crazy that educated people in this day and age do not know these things. Blows my mind, blows my mind. But I share it all the time and it always does so well. You know, like the content around okay, it's it's not. I honestly believe it's

(12:31) not that hard to get into the market. It's not easy. Like, no, of course it's not easy. Like anything that is easy is generally not good for you anyway. Um, but it's not like this thing that is out of reach. Yeah. It's just like you have a choice to make. You either choose easy life now, hard life later, or hard life now. Easy life later. And we have that choice with everything in life, like a 5% deposit, no lenders, mortgage insurance, no stamp duty. Like, the only thing easier than that is if the government said, hey, here's property. Here it is. Here's your deposit. Even then,

(13:02) people would be like, oh no, no, the government give it to you. You know, it's like, oh my gosh. So what's the biggest myth you hear though from first home buyers or people in the industry? What's the one thing that every time you're like, you scratch your head being like, I don't understand how this exists. Yeah. I think, um, the biggest myth, I mean, there's so many myths out there. Um, but, like, the common one is, you know, people just can't fathom that the marketplace will continue to get more expensive because I honestly believe that people have this thing where they're

(13:33) like, oh, no, I'll just wait for the market to drop, and then I'll get in, like, totally. Yeah. Like that's a really common one. Um, or they just, you know, like, I don't know how many people comment on my posts every day about like, oh, it's a ponzi scheme, the market's going to crash, you know, blah, blah, blah, blah, blah. Um, and actually, it's the waiting. So everyone in my family during covid and my family are all on the gold coast. So I decided to buy on the gold coast. And I was like, oh, I'm looking at this three bed and it's like close to a meal, blah, blah, blah. Let's, let's discuss. And I was like, oh no, it's not worth a meal like it. Just wait. Just wait. And I was like,

(14:07) oh, okay. Then I was like, now it's 1.2 mil. And I was like, everyone's like, no, no, we bought ours. Like back in the day for 1.5. I was like, that's a full house on the water. And they're like, yeah, so you don't pay 1.2 and three bed. I was like, are you even looking at the market like it is not stopping? Like it is crazy. The it's not just property though, right? Like people I did a video on it the other day. Um, my whole life is just a video. I was about to say. What video haven't you done? I was like, I think about something. I'm like, yeah, let's do a video. Um, but people just make comments on things that they absolutely have no idea about. It's not just real estate. It's like

(14:40) everything in life. Like, I can go anywhere and I can talk about something and I'd be like, oh, I'm like, well. Who are you? Who are you qualified to give me? You know, that advice or like that opinion? And it's no different to real estate. You know, you make a comment, I'm looking at this, I'm doing that. And then every tom, dick and harry has on, I'll do it like this. And it's like, oh, how much money have you made through real estate or none? Okay. That's great. What house do you own? Oh, I don't own any. Oh, great. Thanks for your uneducated advice. And the other myth just I thought is like people think way too short term. That's the issue. So like. So I think the challenge first home buyers have is

(15:11) like, um, they think that by sacrificing for 12 or 24 months that then correlates to their whole life is like, oh, that's my life's going to be like, what? I want to live like that. I want to live for the now. But it's like 24 months of sacrifice over a 60, 70, 80 year life. It's a very small portion. Totally. Um, and then when people are in the market as well, or they're trying to invest generally again at short term, it's like, where's the next? We know we just spoke about like perth, but you should invest in perth. Why. Because it's going up right now. Are your boards perth down for the last 30 years. Not that great but people think like very the next hotspot. The next. Let's try and

(15:42) make money overnight. And anyone who's made a substantial amount of money knows that none of it comes overnight without luck. Yeah. And there's a guy in the eastern suburbs right now walking around with a lotto ticket for 100 million bucks that doesn't even know he won it. Imagine being that guy. So check the benz. I don't get it. Like, honestly. Right there. You need to buy them if you want money only. The only luck is if you get off the plan and buy like you did and then sell it straight away. But and that was silly. I tell no one to buy off the plan, but I just had a friend that cut this deal with this developer because he wasn't selling stock, and I put a five grand

(16:12) deposit down and this was my thinking around it. I actually couldn't settle on it if they needed me to settle on it, because I couldn't service the debt. But I was like, okay, so worst case scenario is I need to settle on it. I just give the developer my five grand and I bounce. If the market's dropped and he has to pursue me, and the reality is he'll probably be broke anyway because the markets crashed. I'm like, best case scenario is the property is worth more money and on sell the contract. Fortunately for me speaking, it all works out for you. Yeah, well, that's how I think about most things in life. I'm like, worst case best guys. I'm happy with the worst guys, so I get that. We've talked about myths, but like there must have been mistakes or learnings along the way.

(16:44) still make them now? Yeah. What were some that really stood out for you? Um, so, um, having this misconception in my mind that the marketplace will always continue to go from strength to strength, then my business will always grow. I learnt the hard way in 2022, 23 that that's not always the case. Um, so, um, obviously being in the real estate sector, I work in the real estate space as well. So, um, was growing my portfolio, using debt to buy more assets. Um, business was growing really well. All of a sudden, these people called the rba started to increase rates. And I

(17:14) was like, what the. Anyway, that's not good for my business. Um, so my business, you know, I took a bit of a dive. Jack's debt got more expensive. I wasn't carrying lots of buffers. I was really stressed. Yeah. Um, so the big learning from from that point of my life is like, if the higher the risk that you take in your life, and obviously buying lots of assets and carrying lots of debt is high risk, you need to have a lot of buffer. Yeah. In case of a rainy day. Um, and that doesn't matter if you've got a million bucks worth of debt or 100 million bucks worth of debt, like you need to have a war chest for a rainy day. Um, and me being young and ambitious and aggressive and all the rest of it, I

(17:48) wasn't carrying that. So I had to work really, really, really, really hard to make sure that you had to. He had to make more videos. Everyone had to make small videos. Um, so that's a really big one. Um, and then there's all the little ones, like, you know, I bought my first property and my second property using anz as the lender and anz cos securitised my loans. I didn't even know how to spell cross securitised when that happened. But I learnt as I went on that that's not a great thing when I went to buy my third property. Yeah. Um. Um. Oh there's, there's so, there's so many mistakes

(18:18) that I constantly make both in property and in business. And the good thing is, when you make a mistake, it's then a learning to put in your mind and go, don't do that again, jack. Tick. And you talked about the buffer and the debt at the time. And like let's talk about investing leverage and the myth that debt is bad. Um, what's your take? I'm a bad boy. If dad is bad, because I've got lots of it. That's not a very raunchy, you know. Yeah, sorry about that. Um, so, uh, rent vesting. We'll start on that. Um, rent vesting does not work for everyone. It works for a

(18:49) certain part of the demographic. And that demographic is people who live in cities where it is very expensive to buy, like sydney, which is where I live. So generally speaking, if we use what was the gentleman's name at the start? Who said, um, jordan. Jordan. Jordan. The legend is that the pub now just knocking him back, watching the bulldogs, rushing the doggies. Um, so, you know, for someone like jordan, you look in the inner west of sydney and to buy a house, you know, you're looking at two and a half, 3 million bucks for something, you know? Okay, not even that great. Um, to read that same house might cost you 1000 to $1500 a week. So if you could look and say, well, what would it cost

(19:23) me to own that property with two and a half $3 million worth of debt at 6%, you're looking at, you know, quick math, 150, $200,000 a year just in interest, which is 3 to $4000 a week versus 1000 to 1500 to rent. There is a massive disparity there. And then with the cash flow saving, you then go on invest in assets that you know have tax deductible debt associated with them. You can get a lot more debt because there's an investment debt and you live a much better life. Yeah. As opposed to going and getting this huge owner occupier mortgage, which is what most people do. They slave away paying it down over ten, 15, 20 years. And then when they get low debt, they come

(19:57) up with this grand idea that they should go get more debt and buy a bigger house. Everyone has that. It's like they, you know, it's the path of like australians, which again, is great for people who are invested in the marketplace because there's this like aspiration and status with living in a better suburb, owning a better house, like it's something you tell people at dinner parties. Yeah. Um, there is a weird thing with status and suburbs, isn't that it's all status? Yeah. Like the only reason someone must live in vaucluse, bellevue hill, point piper, is because when I tell people that, people think, oh, wow, that person's successful, it's no different to wearing a louis vuitton handbag or driving a bmw. That's all status. Um, so the rent busting thing is, the

(20:30) more expensive the suburb that you live in instead of buying their rent there. Like I. It's not relative to everyone, but I rent a house. It cost me. Or for a 3800 bucks a a, which is a lot of money to most people. But the house is worth 515 million bucks. So if I went and bought that house, yeah, it would tie up 5 million bucks worth of capital in my interest. I'll only be 600 grand a year of non deductible debt. And like, there's a lot of people in my world that have that debt. Um, that's all paid for with after tax income. So you know, assume $600,000 of repayment. You've

(21:01) got to go earn 1.2 million, pay the ato 600 of that, and then pay your mortgage. With what? What's left over? Um, it's just like it's terrible. I'm glad you did the math, because my girl math thing was not math then. But in saying that for a lot of people when they go, oh yeah, but I can, my mortgage is similar to what I can rent my property for, which is in lower dollar value areas. That's probably the case. Yeah. Um, because the rental yields are higher but more expensive. You go lower rental yields better to rent there and invest elsewhere. Um, and you touched on earlier around,

(21:32) people thought you had rich parents. You didn't. But what do you say to people that assumed you had rich parents or a big leg up when you started? Oh, I'm like, I want to see the check because I need it. Um. Oh, look, I mean, people make excuses about everything, right? Like, the reason that that person is successful is because he or she had this, and I didn't. So that's why I'm not successful. People always want to give themselves a reason to be average in life. Um, so it's easier when you're like, the reason they're like that and I'm not is because they had this leg up or they had, you know, whatever it is. There goes my phone and all my videos. Um, so, you know, it's just part

(22:07) and parcel of it. You know, I've heard lots of things about myself that I didn't even realise, so I learned. Do you have a wiki page or something like that where there's, like, cool stuff? What's that? Reddit. Is it reddit? Jack anderson's like a celebrity on reddit. Now, we were talking a lot before around. Well, you weren't in the room, but with the team around this whole era of influencers, which I actually didn't even know the term, but it's apparently a term and you're one of them, just fyi. Um, yeah. You're a influencer? That's right. Um, but there's loads of them out there. Um, do you ever see any advice on tiktok or instagram that you're just like, that's complete bollocks?

(22:41) like absolutely not. So the backstory to why I love property, investing so much money, so passionate about giving people the advice that I feel is right is because my parents went and bought two off the plan and a one off the plan. One house on land package when I was much younger and they were, you know, maybe in their late 30s, early 40s. Um, yeah, early 40s probably. And they sold them 11 years later for less than what they paid for them because they got shafted by an accountant. And this is not an uncommon story. This happens a lot. So the thing that I dislike is I see a lot of companies that are very big, much bigger than my company, um, who sell this garbage

(23:16) to people, and they know what's garbage because they would never buy it themselves. And, you know, they, they sell this, pay down your mortgage and that's optimised for tax. And they put these people normal mum and dad's who are like working their ring out into these holes in the middle of nowhere because they get a big fat commission from the developer, and these people get stuck with them in their self managed super funds. And, you know, it's just terrible. And they're like, there's no I that's how you really feel. Yeah. And that is that's what I dislike. And they're not influencers. They're just arseholes. Yeah. Um, so I'm super passionate about making sure that everyone

(23:50) knows exactly how I feel about them. And if people choose not to listen to them, to me, then that's on them. And if they lose money, then should I listen to jack? Yeah. There's always haters out there, so you're not going to be for everyone. So that's what I dislike. Like at the end of the day, most people put out content because they think it's right. And not all my content is 100% correct for everyone's situation. Um, just like, you know, other people's content. But, um, yeah, if influencer is is a nice name. There you go. You're influenced by day and influencer by night. Bigger

(24:20) kids, bigger fridge, bigger car, bigger parties. You even got a bigger dog when you've outgrown your home or your loan. Ozone can help you get moving. From property listings to bridging loans brokers to buyers agents. Ozone. Everything you need to find, buy and own standard acl lending group distribution proprietary limited australian credit license 246786 aussie homes platform pt mtd acn 679205639.

(24:51) but what I really want to get into was I'm going to use the big american dream, but it's the australian dream. But the white picket fence right. Like which actually still. And that's all about owning a home family, all that. But if we think about the property part of it, do you think that's still a reality? Yeah, I think it is a reality. I think the issue or the misconception people have is they look at where their parents grew up and they go, why can't I afford to buy a house there? Yeah. And the reason for that is because probably when your parents grew up, there was a population

(25:22) of 10 million or 12 million in australia. Now there's 27. So to assume that you can buy in the same location as your parents when our population was significantly lower is just silly. Yeah, it's just like an ioc. You said the great american dream. Um, it's like being born in the us and going, oh, trump, I can't afford. I kind of, I can't believe I can't afford to buy an apartment in new york. Everyone would say, you're an idiot for thinking that because new york is for rich people. So we're in australia to be born in sydney, in a wealthy suburb and be upset that you can't afford to buy

(25:52) there is silly because that's where wealthy people live. And I've said it before, I got the media love this one. I was like, if you're not rich, you shouldn't live in sydney. And what I meant by that comment is sydney is for wealthy people, and if you don't have a lot of money, it is not a great place to live. Because I grew up in a place called wilberforce, which is like 70 k's north west, so I have no idea where that is. You go. So for me to go to the city was not like a 15 minute drive. It was an hour and a half. Yeah. And I grew up in sydney and I could tell people I live in sydney, but the sydney I grew up in, in the sydney, I now get to enjoy a world apart. Yeah, it's like living in bangladesh and coming here different. Very different. Um, bangladesh. Um, I was like, why

(26:27) did I say that? It's okay. Let's just go there. Yeah. It's um. Yeah. No. It's alright. Those things usually make it funny. Um, so yeah, I think, like, you just need to be real with yourself and you need to go. If we work in average jobs earning average incomes, that is fine. But you need to also live in an average suburb. Yeah. Like I don't make the rules. That's just the world. And if you're waiting for the market to drop, you're probably going to be upset. Um, if you think the world is wrong because it doesn't suit you, you're also going to probably be, but, you know, upset, um, and you just

(26:59) said accept where you're at and either change where you're at or just enjoy it and let's go. So we're talking about we need to be realistic, right. Like the australian dream still exists, but we need to be realistic around what that looks like. So if we started today, um, both of us, we're looking for houses, you and I. Yeah. Let's do it separately. We're separate. Um, let's do it. We're looking for a house. We're looking for a house. Um. Our salary. Your salary? I'm going to say you're 120. Cool. I'm going to be on 125. Because women empowerment. I'm a little bit above you. Yeah.

(27:30) you're the breadwinner. No family. What's our strategy? What suburb are we looking at? Okay, so the first thing you got to do is like, how much money? The way first home buyers. Right. First home buyers are buying individually. Or is that combined income individually. Okay, so we got 120. And the first thing I want to do is I want to speak to a mortgage broker or the bank, whoever it is, and go hey mr. and mrs. mortgage broker, how much money can I borrow based on my income? And they're going to say, you can borrow on 120 grand give or take probably 600 grand. Yep. Okay. And you go awesome. Based on that budget, how much deposit do I need? 5%. 30 grand, plus a little bit of buffer

(28:03) for personal building inspections. And, you know, not at the pub when you buy to celebrate and all that jazz. And then you go, okay, where can I afford to buy it for 600 grand? You shouldn't be upset that you can only borrow 600 grand. You should go. Where can I afford to buy? And then you go and explore. So if I was doing it, I would go to the central coast. Newcastle. That's what I would buy. Yeah. Um, because I just think it's a great place to live. Incredible lifestyle. You can still travel to sydney every day, like I travel from western sydney into the city to work, and it took me an hour and a half. You can drive from the central coast, sydney. It still takes an hour and a half. Um, and I would buy my first property and it would either be a nice apartment by the beach, or it

(28:36) would be an older house that I could do some work to. That's it. Easy. So do you think people go wrong because they start at the second part first or. Yeah, I think I just think, um, people get excited about the fact of like, oh, you know, I can go buy a house now. And then they go look at houses and they go, wow, look at this, a million bucks. It's like it's like not understanding how much you can spend on a car. And firstly, walking into bentley and then going, oh my gosh. And then when you walk out of bentley and they go, you can only spend 30 grand, and then you go, oh, I can only get a camry.

(29:10) it would be very upsetting. Disappointing. But if you started at the brand new camry, you would never even know what the bentley looks like. Yeah. Um, so, yeah, I just it's just you just need to be real with yourself and say, how much can I afford to spend? Awesome. Where can I buy? I feel like this is where I go wrong. And I was talking to a girlfriend literally on the weekend, and she had a one on one with her husband. Like, something's going wrong, we can't find a house. And then we're like, let's look at both of our search things because they were doing it independently, but coming back together. And he was like, our budgets, this anything under that budget, I don't care. But

(29:42) like any suburbs, any, any bedrooms where she was, it has to be three bedrooms. It has to have a car, it has to be in this or surrounding suburbs. And I'm willing to go a bit over and done it out. And I was like, no wonder you have it lettered or anything. They're not aligned with the market. Yeah, yeah. And you know, we the business. When it first started we worked in the owner occupier space. I worked with so many. Yeah. First time buyers and people spending many, many, many millions of dollars. And I can assure you, regardless of your budget, 600 grand or it's 25 million and I've

(30:12) worked at all spectrums. No one can afford the house they want to buy. No one. I'm telling you right now, regardless, even if you've got an unlimited budget, people want houses that they will never be able to buy because people won't sell them. You know, I remember a client that had 25 million bucks in bronte bronte's a small suburb, and they wanted to be on certain streets. They wanted certain land sizes, they wanted a certain view of the beach. Wow. This is very common. Very common. And the higher the price you go, the more they never bought because they couldn't afford what they wanted. What they wanted was 35 million. And what they had was 25 million, which I know was a first world problem. But it's not for them. It's no different having 1,000,001 except

(30:47) for 1.5. It's like you just need to accept where you're at. Yeah. Um, and they're the people generally who do best, which is me. I'm just like, I want to be a billionaire, but I'm not, so I can't buy a jet. And I'm upset that I did buy a boat. I saw that that looks pretty sweet. I've had a boat for a lot of years, and I upgraded recently. Yeah, and has a new upgrade. It's okay. He's really playing it down, I think people. Okay, um, okay, let's shift gears now. We've moved on. We've bought our first house and we want to buy an investment property. Yes. It's 2025. Where are we

(31:19) investing? What suburbs are hot at the moment? We're said perth's a no go but see that even like that terminology. What suburbs are hot right now. Yeah that's how everyone goes into investing. It's like going what companies should I invest in right now? But the short term view guys are so so so the way that I think about it is how much can I spend? It's really schooling me here. What is the best suburb that I can afford to buy in? Because what we see and have learnt with real estate, you know, we sort of agreed that real estate is a status thing. At the end of the day,

(31:49) everyone earns more money. They live in a better suburb. So good suburbs as the population gets greater, only get better over time. You know, point piper will not become a worse suburb than it is right now, I can assure you. So if we believe in that concept, it's like, well, if I get into a good suburb now, it's not going to be the one that makes the top investment lists or any of that shit. But it's a really good suburb. It's always been good and will only get better over time, and it only gets better over time. Generally, when things are better, they become more expensive and that's how I think about investing. None of the suburbs that jack has an invest in ever make the

(32:21) top ten hotspots. Or here's the one that's going to do 30% overnight. But I can guarantee you I've made significantly more money than all of my counterparts investing in other locations. And I will continue to over a long period of time. And I just follow people who are way wealthier than me, because if the best suburbs to invest in were places like darwin and bum fuck nowhere in queensland and perth, I can assure you all of the wealthiest people in australia would be buying the property there, and I don't know too many gina rinehart and harry trigger buffs who have bought

(32:52) in the back of her nowhere. You know what I mean? Like, and I keep it really simple. So I was like, how much can I afford to spend if I'm in if I'm in brisbane, for example, how close can I get to brisbane cbd? Because generally the closer you are to a city, the better it is the gold coast. How close can I get to places like palm beach and burley and and the most I've bought in burley waters. I'm on it. There you go. That's an affluent suburb, right? Guys, I am clever. You are the investor. Um, so that's how I think about it. And like, everywhere is the same whether you're in

(33:22) brisbane, sydney, newcastle, central coast, bloody melbourne, wherever, just getting the best suburb you can afford. And don't think about it overnight because you make the most amount of money and you look at like all of our grandparents and like they bought houses for ten bucks. It's devastating, but it's not going to change. People think that, oh, how can it the the thing will remain the same. It's like if we buy a house for a million bucks a day, $1 million is a lot of money today, like 100 grand was a lot of money x amount of years ago. And as time goes on, because the values change so slowly and we just acclimatise to them when something's worth 5 or 6 or $7 million, that was

(33:56) once worth a million. You don't think, oh, a million was so cheap because a million was a lot of money when it was bought. So yeah. So what are we more obsessed with at the moment? Are we more obsessed with creating content and being an influencer? Is that how I say it, or is it still the you still love investing in property? Yeah, I love. I mean, I love both. Um, I'm not a influencer. I just talk about my own experiences. Um, I love property. I really, really love real estate. Now, the acquisitions that I personally do are very different from what I started at, I buy. Um, I'm

(34:29) obsessed with rural property at the moment. Interesting. Um, got two wedding venues. Wedding venues. So I've been doing a lot of counting on that. So it's just a really awesome way to own property because it's a, um, a real estate asset. Yeah. And it's a business as well. I call them active investments because I can, you know, push onto the assets, all of my learnings in business. So in weddings, obviously it's a service based business. You've got to acquire customers. I know how to advertise, obviously. Are you also a wedding planner or not a wedding planner? No, no, I don't have any active involvement in it. Um, but there's some really cool advantages with rural property.

(35:02) like, you don't pay land tax, you get some really cool exemptions because I'm a primary producer. Um, I have cattle. All the buzzwords, guys. Yeah, yeah. So I love that. But I also love business. Um, you know, I, I'm obsessed with business and growth. And again, business is one of those worlds where I love accountability. So if my business is not doing well, guess whose fault it is? Jack henderson's. But guess who has a solution? Jackson. So what I do really has a heart. That's right. If you want one of my hats, just let me know. I'll never sell it to you. Um, yeah, I love that. I just love, you know, the

(35:34) game of of property and the game of business because I'm in full control of what happens. So I love it. I feel like the video is just an extension of your passion, and you're just educating people on stuff that you're doing every day, literally. And I only tell people what I've done. So like exactly what I've spoken about throughout this is exactly what I do. I'm like, okay, I've got this budget, what can I afford? Like, I would love to go buy a farm. I'm one of these people who can't afford to buy what I want to buy a farm in the southern highlands. But for what I want in the southern highlands, you've got to compete with people like scott farquhar. He's got 15 billion bucks. And unfortunately I don't. I think nicole kidman has got one down there as

(36:08) well. You can keep her up. And like the the average price per hectare on this off its head. but I can't afford to buy there, so I have to buy in other places. You could sell the boat. It's all about sacrifice. Someone told me would do, but. Ah. Okay, last question, but what does owning property actually mean to you beyond the actual dollars? Um. I mean, if it didn't make money, I wouldn't own it. Like, that's the reality. I invest in real estate because it makes money. I mean, I love it, I'm passionate about it, but I'm passionate about it

(36:40) because it makes money. Because he's going to be a billionaire. You heard it here first. Now he's going to be a billionaire first. I've said it many times, but we can pretend you've heard it here first. We've heard it here on all of his videos first. That's right. So, you know, like I love real estate at the end of the day, um, but I love it because of what it can do to people's lives. So, um, I think you can be an everyday australian, and history has proven this, and you can buy a good house and it can make you millions and millions of dollars. Yeah, very, very hard to do that in any other asset class. People always do. The comparison between real estate versus shares, which is an

(37:12) awesome comparison to make. But if you want to be really successful in investing in shares, not financial advice, you need to also be very disciplined with your money because you need to invest consistently week in, week out, every week. You need to keep putting money into the market. 1% of the population can do that because people like life and they enjoy life with real estate. You only ever have to come up with one amount of money, and then you're forced to pay your mortgage every week because the bank will take it off you if you don't. So you can create a lot more wealth real estate with being way less disciplined. And australia's economy is geared towards people and,

(37:45) you know, the real estate market so well. Thank you very much for joining me. Thank you. It's been an absolute pleasure talking to you. Yes. But if they wanted to reach out to you. Yep. Do they slide into your dm's. What's the tone. You won't get me replying. You probably get an offshore filipino who's just going to be found in my, um. That's the truth. People message me all the time and I'm just like, there's just thousands and thousands. Actually, I'm not even kidding. I added you on instagram. a message right away? I got a message shut away. Been like, hey, what are your goals or something? And then I wrote back, think it was you? I'd be like, oh, sorry, I'm actually just stalking

(38:15) you because I'm about to do a podcast with you. That wasn't me. I was like, oh, no. Ever get back to me? How awkward. Yeah, that wasn't me. That's so funny. So don't message me on instagram. I'm not interested in you. Yeah, so I'm assuming there's probably lots of girls and stuff who have tried to dm me, and they've just gotten like, hey, give us your name, a number, and then you just get hammered with my sales team. Um, you should email me jack at henderson. You have your email is not creepy. You'll probably get a reply. There we go. Well, thank you very much. Thank you. These four walls is brought to you by aussie. Like and subscribe on youtube, spotify and apple podcasts for new

(38:48) episodes every fortnight. For more information, see the show notes to this episode or visit. The information provided during this podcast is for general informational purposes only. Aussie does not provide financial or investment advice. The information in this podcast does not take account of your objectives, financial circumstances or needs.

[PODCAST ENDS]

The information provided during this podcast is for general informational purposes only.

While we make every effort to ensure the accuracy of information, Aussie makes no guarantees, warranties, or representations regarding the completeness, accuracy, reliability, or suitability of the information. While Aussie may refer to our products or services, such as finance or insurance options for you, you are under no obligation to take out any co-branded or referred products and services.

Aussie does not provide financial or investment advice. The information in this podcast does not take account of your objectives, financial circumstances or needs. We recommend you seek independent financial, legal and taxation advice before making an investment decision.

Credit activities provided by Lendi Group Distribution Pty Ltd ACN 105 265 861, Australian Credit Licence 246786.