SPEAKER_01: 0:10

Hello and welcome back to that Home Lawn Hub. Today I am joined by Center.

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Kidding.

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I have this beautiful person here with me today. His name is Mark Ashton. And he is here to share his home ownership story. Hello, Mark.

SPEAKER_04: 0:27

Uh, Kioda. Thanks, Ihoa. And um, Kioda Kato to all of your uh subscribers and listeners. And uh yeah, it's a pleasure to be here.

SPEAKER_01: 0:37

Thank you so much. It's been a while since I've seen you.

SPEAKER_04: 0:40

Yeah. Well, it's been just over a year since we settled, I think.

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So Yeah, how's that going?

SPEAKER_04: 0:46

It's been busy. Yeah, it's good, it's good. We're really happy. Um we are, you know, just keeping on, keeping on. World's pretty crazy right now.

SPEAKER_01: 0:55

Yeah.

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So um, you know, just trying to keep it real and keep fit and healthy and keep the kids on track and you know, all the usual stuff with life. Everything, yeah.

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Everything. Thank you so much for being so brave and volunteering to share your story.

SPEAKER_04: 1:11

Pleasure.

SPEAKER_01: 1:12

I I didn't not a little bit nervous.

SPEAKER_04: 1:14

I'm okay.

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Just for full disclosure, I have not twisted your arm to be here, right?

SPEAKER_04: 1:18

You are at your wrong free will. Very much so, yeah.

SPEAKER_01: 1:22

Awesome. So, Mark, tell us about um you and Shelly and you know who you guys are and what was your background and what made you come to me.

SPEAKER_04: 1:34

Yeah, okay, cool. Um, so I guess for a little bit of context, um, so Shelly and I um had both come out of you know marriages and past relationships that hadn't obviously worked out, uh, and we'd met and connected and you know, shared similar sort of um passions and interests and so forth. And uh at that time Shelly had her two boys um and they were quite young, I think um uh four four and six at the time, something like that. And um yeah, we you know, we connected and Shelly was working, you know, she had a couple of casual um jobs. She's sort of in the sports and fitness and aquatics industry. Um, and I was working uh various jobs as a contractor in the film industry, um, so often away and so forth. And we were just kind of um we didn't have a lot um between us. We sort of, you know, had a little bit of savings, and we decided that we were gonna make a go of it. Um and kind of we we so we did, you know, when we were renting at the time and just continuing to work and um had always kind of wanted to own our own place, um, Shelley very much so, and uh, you know, it just over the course of time it just didn't seem like it was going to be something that was doable. Um we uh just came to a point where we weren't, you know, we were kind of struggling with um savings, like we were, you know, surviving okay and making bills and payments and so forth, but um it was taking, you know, it was taking a long time to get savings together. And then just inquiring with lenders and so forth. Um, we really didn't have between us consistent enough income um that was seen to be um, you know, something that they could rely on. And uh and then that kind of changed. Um, I ended up with a full-time job in the same sort of industry and was reasonably well paid. And Shelly also um managed to secure a full-time employment um, you know, through in her field as well. And that kind of grew. And then so that kind of established a baseline for us, um, and we just kind of built on that and um, you know, were responsible with our spending and you know, just putting some money aside for savings and so forth. And but we were renting, renting, renting, renting, and paying someone else's mortgage, paying somebody else's mortgage, yeah, totally. And there was there was, you know, there's always that um element of uncertainty. Um, we were really good tenants. We always um you know, maintained the the places that we were renting as as if they were our own, essentially. And um, yeah, and it and it was just it was getting unsettling and kind of frustrating, and it was just like, right, we really need to make a go of this. And so we just saved like crazy and um approached, you know, the bank uh in kind of our guess our first attempt, and you know, it still wasn't enough. Uh there wasn't enough security, and you know, so that was fine. We'd almost resolved ourselves to essentially renting for the foreseeable future, and and then I I kind of I was pretty determined, I think, and I think that's kind of um that was the real driving force. Um, there's a cracker saying that Dolly Parton has, which is like, um, if you don't like the journey you're on, then start paving your own, a different journey. And that was that was what we did. You know, we just we became determined and started doing a little more research, and I can't even remember how we met you. I was about to uh hard it's just almost like um I don't know, I feel like we met in the street or something. Um but um and then and I guess that's part of the process as well, is just the partners and the people and the mentors um and the advisors that that you connect with along the way. And we very much connected with you and felt like um, you know, Zebanisa was a straight shooter, and um, you know, there was just a calmness about the way that you were sharing information, and um, you know, I think that gave us a sense of um possibility as well. Um, so then, you know, that was that was the journey. We worked out that we could tip in our KiwiSaver together, uh, and we found we were shopping around for properties, and we found um our unit down at Paparam Beach, and I think we negotiated over like five weeks, six weeks maybe, just trying to get the price down, get the price down, try and make it work for us. Um, and they were pretty motivated to sell. I think it was one of the last units in that were for sale in in the block. And I think the um the I was just I was actually looking at it this morning. So at that time, um it was we ended up getting it for um like five sixty-seven, something like that. And I think the interest rate at that time um was pretty happy was around six point three to seven seven point five, something like that. And we managed to lock it in with your help and advice um at 5.67 um, I think, uh, which we were pretty happy with, and um, yeah, so we locked that in over three years, 5.65 it was actually over three years, and um, yeah, so we just we put together the finance plan and um thanks so much to you and to Lorraine at the time. Uh, you know, just helped us navigate that process. And I think there's another aspect to it as well, is that um I think there's an old kind of concept that um you know if you've got some smarts, you often overthink things.

SPEAKER_02: 8:29

Yeah.

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And um I think that was that was actually a bit of a hindrance to us. It's like I was overthinking everything and stressing about everything, and Shelly was kind of really worried about what we were giving up and giving up our Kiwi Saver, and um, and we're older, you know, I'm 60, Shelly's getting older as well, and um, you know, so we were kind of outside of that prime, you know, candidate for a home loan and um and finance and so forth, but we managed to pull it off with with our friends and supporters. So um, yeah, so we've we we did that, and I think that's where you know we came to. So we settled in October last year, and we were really happy in the place that we're in. Um, and um, I mean, there was a pretty real um moment of just budgeting and planning ahead as well, like really had to make sure that we were able to maintain the payments and the rates and the body corporate as well. So I did kind of a pretty a pretty intensive um spreadsheet process, making sure that we could make the payments and then increase that incrementally year on year, and you know, still not be um compromised in our ability to um continue making some savings and support the kids, um, you know, because they're older now, so um two of them are have moved out, one's finishing varsity this year, and um our other ones um Max's 15. So, you know, it was just factoring all in, making sure we could still survive and still make saves. So that's been like a year, and the next phase was um reinstating our saving process um just so that we had you know an emergency fund. Uh and so the goal is like by the end of this year, we want to have 25k in the bank. Um, and we'll achieve that. Like we're on target to achieve that, um, just to have as an emergency fund. And then in the background of that, I'm looking at on behalf of you know Shelly and I and our family, um, investment properties, and just working out a way of leveraging, you know, our current situation into another um, you know, property or two properties, something like that, and just how realistic that is. There's a lot of narrative out there available on you know YouTube, and there's different providers and so forth that are that are offering up deals and advice and whatnot. So it's just about I think um you know, sifting through the noise and coming and chatting to you again, probably.

SPEAKER_00: 11:14

I was about to say Mark, hold on a second. You're not gonna talk to me.

SPEAKER_04: 11:17

Yeah, of course, absolutely. So yeah, so there you go. That was that was a pretty long spiel.

SPEAKER_01: 11:23

I love it.

SPEAKER_04: 11:24

How was that?

SPEAKER_01: 11:24

I love it, that was awesome. I think the key elements here that you've rightly pointed out is having the right people on your team. Because if you have the wrong people, you know, like I know when you came to me, you were already turned away before. And when I looked at your numbers, I was like, no, we can make it happen. You know, it's doable. I remember I'm trying to remember, I think Shelly rang me. I think Shelly rang me first, and she found me from somewhere, and we've connected. And I think what blew my mind is that yeah, at that point uh you didn't have a stable contract. She did, but yeah, the in the deposit wasn't as high as we needed it to be, and things like that. So there were a few elements there, but but managed to make it work. But remember, we took a pause. There was a house that you guys missed out on first. We sort of got it approved, sort of not, and then you're sort of like, nah, we don't want to go ahead. And it was, I think it was the right call because it was at the time when the market was peaking. Yeah, it was at the heat of the market, so it was a really good call. And then you stepped away for a bit, you concentrated on your savings, concentrated on getting that permanent position, and then you came back to me, I think two or three years later. And then that's when Was it that long? Yeah, yeah, I think I remember when Shelley got in touch with me. I think I just had my daughter, so that would have been COVID time.

SPEAKER_04: 12:39

Yeah, right. Something like that.

SPEAKER_01: 12:40

So it's been five years now.

SPEAKER_04: 12:41

Yeah, it's insane.

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And then I remember we tried and then we put it on hold and we came back to it.

SPEAKER_04: 12:46

Yeah, yeah. Honestly, it seems like such a blur. Um, yeah. Tell me about it. Totally worthwhile.

SPEAKER_01: 12:53

Yeah, and I think sometimes this is a really important message that sometimes, you know, you will fall in love with the property and you want to buy it, and you know, you try so hard, but then it's just not meant to be. And you just have to recognize that. Because I remember when you guys came back and Shelley said, Yeah, it was actually a good decision that we didn't go with that because of XYZ. So I think sometimes it's important to remember that that if things happen, they just happen for a reason. And you know, yeah, you're right.

SPEAKER_04: 13:18

Actually, that's interesting, and it's about clarity on what it is that you're gonna be comfortable moving into. Like we didn't want to move into a dura opera.

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Yeah.

SPEAKER_04: 13:26

Um, we just didn't have the resources or the time to, you know, be renovating on the run, yeah. Which, you know, potentially would have been a better investment um if we could, you know, build the value on the property, but that just wasn't something that you know we were considering at that time we were able to do. So we wanted to move into a place that we would be comfortable in, you know, for the foreseeable future.

SPEAKER_01: 13:49

Yeah, exactly. And you bought a brand new, there's no maintenance to it. Yeah, totally. Perfect. And then the other thing that you mentioned was budgeting, which is really important because I mean, listeners listening out there going, Oh my god, you fixed for three years, what? But I mean, at that time, and we sat down and the rates were very uncertain, the rates were climbing up every week as we speak. So, you know, at that point, one year rate or six months rate was like 6.9 and 6.8, you know, quite high rates. And yes, it is much lower now, but you just couldn't make it work on your budget and take that risk that, oh, within a year maybe it will improve. What if it didn't? What if we were at 8% now?

SPEAKER_02: 14:29

Yeah.

SPEAKER_01: 14:29

So I think it's also recognizing those moments and not going, oh, I wish I did this, I wish I did that. I think what you did suited your budget. And I think again, that's very important to note that if you don't have a clear budget in mind, it's really hard to determine which rate to go with.

SPEAKER_02: 14:46

Yeah.

SPEAKER_01: 14:47

And you base that three-year rate, given your circumstances, and then in three years' time, you will have other factors affecting your lifestyle. Another child will move out of the house. Um, probably gonna get cheaper because you don't have to buy as much food.

SPEAKER_04: 15:01

Yeah, totally.

SPEAKER_00: 15:02

Maybe just taking a wild guess here because you've got a boy.

SPEAKER_04: 15:05

Yeah, yeah. Yeah, no, that's that's definitely the case. Yeah, it's a it's um, and it's and it's certainly it was settling into a groove and just like establishing some touchstones that we could be familiar with and rely on and just get into a routine of making those payments and saving some money as well. Like I now I think the OCR is like 2.5 and the average. Um, I mean, I was looking a couple of days ago, I think the rates are like between four and a half and five and a half, you know, that sort of thing. So, you know, maybe that's a conversation that we'll take up with potentially other lenders. Um, you know, we may have to um, you know, look at taking a bit of a hit of an exit and a restructure and a refinance, but then on the other hand, um, you know, we're we're pretty keen on just keeping that consistency and reliability, especially if we want to go back to a lender um, you know, with that history um in order to support further investment. Exactly. So, you know, just weighing up the pros and cons of that at the moment. Um, but yeah, certainly at the moment keen to investigate, possibly uh, you know, restructuring the rates.

SPEAKER_01: 16:18

Yeah, no, I can have a look at it for you. I know, I know, I know someone that can.

SPEAKER_04: 16:22

I know someone who can.

SPEAKER_01: 16:24

Mark, another point I want you um to stress again is a lot of buyers that come to me, they're like, Oh, are we old enough? Are we, you know, sorry, are we too old to apply for a mortgage? And what would you say there?

SPEAKER_04: 16:38

Um, I think it for me, it's like a lot of decisions uh in my life is to choose to have no regrets. So um, you know, we sat down and just weighed up what our options were. Um, we acknowledged that we were older and that it was going to take time. Uh and then, you know, when we pulled the trigger on pushing ahead with it, that was that was the moment that we decided not to have any regrets, whatever happened. Um so hopefully that all works out. Um but that was that was the thing, and and it was, you know, it it was interesting actually because it was almost you know an extraordinary moment when A and Z came back to us and approved.

SPEAKER_00: 17:25

Uh and how long was your mortgage approved for? Do you want to share that?

SPEAKER_04: 17:30

Uh like 20 20 years, I think, was it? Yeah. Yeah, 20 20 years. I thought it was 25, and then we realized then this fine print was actually 20, so obviously wasn't wearing my glasses.

SPEAKER_00: 17:42

Should have gone to spec safers.

SPEAKER_04: 17:44

Yeah, yeah, totally.

SPEAKER_01: 17:45

But I think this is a really important uh point to stress that um a lot of people are scared to approach us because they think they're too old. And I mean, and I mean I tell them, look, we do have success with older clients, it's all based on stage in life and what happened. Because you know, a lot of people, as you say, they come away from one marriage. This is where probably they lose a lot of the asset and they have to rebuild again when they're in their 30s and 40s. So it's just taking them a bit longer again to rebuild and be in a position to buy. And I think it's really cool that you're saying this because hopefully that sends a message across to our listeners that are listening. And you know, some of them are younger and they're like, Oh, actually, I have mom that wants to buy, or I have a dad that wants to buy, but they they worry that they're in their 60s and they can't.

SPEAKER_04: 18:34

Yeah. Um, and and that's that's a reality. Um, we're both pretty fit and healthy. Um, so that was a bonus. Uh, like insurance for us now is um much more expensive than if you're much younger. And you know, just on to those that are out there um listening and in in the virtual world, if you're young and and this is something that you're considering, then you know, get amongst it, especially now while the rates are low and the you know it feels like it's a buyer's market at the moment. Definitely get good advice from Zebanisa, of course. Um but yeah, for the older um group, I think it really is just weighing up what it is that you want to achieve and it that you've got the energy to do it. Um and we were you know, we were a bit anxious about it. And um ultimately, you know, we just weighed it up on balance. It's something that we really were driven to do and um and just had to action it. Uh and then, you know, I guess it's having an exit strategy as well.

SPEAKER_01: 19:45

So Yeah, which was remembering.

SPEAKER_04: 19:47

Ultimately, if something happens to one or other of us, we know what we're gonna do and you know, we know we're how we're going to, you know, settle, settle the deck. So yeah.

SPEAKER_01: 19:56

I think it's having those open conversations with each other. And to be honest, often I feel like I'm playing a therapist, a marriage counselor during those discussions because one wants this and the other one wants this, and then they've got all these different fears and different anxieties about different things, you know, like you were saying, Shelly was worried that suddenly her KiwiSaver was depleted, and that's her retirement fund, right? Same as yours. And that's worrying because if you're already halfway through your life and you're like, damn, how much longer do I want to be working? Yeah, and how is that Kiwi Saver's going to perform for me? But at the same time, if you're paying someone else's rent, you're always at the mercy of you know, rent going up. You can't control that. Same as the interest rates, they can go up. Um, but you can get kicked out anytime because if the landlord suddenly decides to sell the house or you know, move in in it themselves, that's it. You have to start looking for a new house. And especially if you've got animals, that's always harder if you've got pets.

SPEAKER_04: 20:54

Yeah, yeah, 100%. It was it was a real it was a real change as well. Uh, we did have, we had, you know, a dog, golden retriever, and cats and heaps of everything, like as you know, with children, you're just accumulating furniture and stuff, heaps and heaps of stuff. So that actually took quite a long time. Um, you know, garage sales and lots of stuff on TradeMe and you know, just reduce, reduce, reduce, and you know, getting into um a very zen kind of mode, uh, which felt really good at the end of it, even though it was it was quite a challenge. Um, and to your point on the rental, yeah, it's I think if you're in a say you're in a city or a an environment where they're you know the rentals are plentiful and they're at a high standard and you have options, um, you know, that's a realistic alternative for, you know, your foreseeable future through through to to passing, I guess. For us here, I just we just felt like there wasn't actually that real um, you know, opportunity to constantly be able to be in a place that we felt comfortable in it, happy in. So I guess that was another contributing factor as well. So yeah.

SPEAKER_01: 22:09

And also I think when we were comparing the repayments, what you were paying in rent was almost the same as you were gonna pay in mortgage.

SPEAKER_04: 22:16

So Yeah, it was it worked out more. Plus rates and body corp. Yeah, plus and and the body corp factor was a pretty significant consideration as well, because that's only ever gonna go up. Um but on balance we worked out that we could still um do it and we could just make our payments and still survive on one wage if we had to. Um like only just but no steak anymore. Hey.

SPEAKER_01: 22:49

No wine and steak.

SPEAKER_04: 22:50

Yeah, well no, that's I mean, that's that's a real that's a real thing. Like we just had to be, you know, we live a pretty humble life. One of the advantages of living right by the beach is we're in the ocean every other day and you know, out and active, just doing things that don't cost money. Um I love going out to, you know, restaurants and to eat and that sort of stuff. We might do that once every three months. Um, you know, we're just really cut down on all of those um, you know, that that that sort of expenditure. And, you know, as I said, just putting savings aside so that we know that we've got um some backup and that we can still, you know, contribute to making sure the kids are happy and safe and well and clothed and fed.

SPEAKER_01: 23:36

Fed. I love this because see, a lot of people they come to me and they go, I want to buy a house. And then I show them what the numbers will look like and what sacrifices they'll have to make. And no offense to our younger listeners, but a lot of younger people they don't want to make the sacrifice. They're like, no, I still want to have this lifestyle and a house. And I'm like, yeah, but you can't have both sometimes. Like you have to either increase your incomes, that you can have both, you know, that you can still go out and have takeaways every day and you know, and have a house, or you buy a cheaper house and maintain this lifestyle, but you can't have the one million dollar house and go out every night. Like it doesn't work this way. So you have to be prepared to take those sacrifices. I had to, I know I had to for you know the last 14 years of my life of buying houses and having babies and being on maternity leave and going back to work. So I know what it takes if you want to get from this position to this position. But a lot of people are not prepared to make that sacrifice. And I think the moment they realize, oh, okay, if I make the sacrifice, I'll get myself to this, then they're ready. But until they realize that, they're not ready to buy a house, in my opinion.

SPEAKER_04: 24:49

Yep, for sure. And just being informed about what the other opportunities are, like, you know, maybe investment in property is not your thing. Maybe, like, for example, um, you know, we've reinstated and you know, going hard on our KiwiSaver, and I'm really enjoying actually now um just managing our KiwiSaver through um I've got it with Shares at the moment, and so I'm actively monitoring a small portfolio of investments and what have you. Um and I quite enjoy that. Like I'm just fascinated with world events and how that affects markets and um you know various prices of our shares, and maybe that's your thing, but there's just something really elegant and simple about property. Um now's a good time.

SPEAKER_01: 25:41

I love it. Thank you so much. I just I'll just take you everywhere with me now to do the marketing for me. Because I feel like when we say now is the time, people think, oh, you know, they just want to ramp up the business. But honestly, truly, now is the time.

SPEAKER_04: 25:54

Yeah, 100%. And just like listening to different, you know, um commentators and just watching the trends, um, you know, it feels like it's it's all gonna be a little bit flat for, you know, probably into the end of um Q1 next year, yeah, maybe possibly into Q2. So um, you know, get amongst it, go shopping for for property through summer.

SPEAKER_01: 26:19

Love it. What would be your advice to a 20-year-old Mark? If you could go back in time, what would you tell yourself?

SPEAKER_04: 26:28

Crikey, it's interesting. Um, it's having like I'm not particularly financially driven, and we neither Shelly nor I were brought up in an environment where there were a lot of those skills passed on, in fact, virtually none. So there was really not a lot in the way of discipline. Um, you know, the insmart the smarts were there, the desire to be, you know, independently wealthy and travel the world. Um so uh going back to that time, I probably probably two elements. Firstly is um making time to have fun and to explore and to learn new skills and meet lots of new interesting people and just go outside of your comfort zone and go into the world. Um and then separately, you know, just put ten, fifteen, twenty percent of whatever you're earning aside into a no-touch, you know, account or an investment account or something. Like that just seems to be advice from you know, the beginning of time. And it really does build up over time, and then that's contributing uh, you know, to a deposit. And then the sooner you get in, um, you know, I think the sooner that you're going to actually get the benefits of that. Get good advice, make sure you're going into the right property in the right situation, and um, you know, maybe go travel for a bit, get that out of your system, and go see the world and meet interesting people and do crazy things. Uh, but then yeah, I mean, I really genuinely wish that I'd gone into property investing, you know, 40 years ago.

SPEAKER_01: 28:18

Yeah, that would be a completely different story now. Yeah. And that's the thing, right? No, no, Uncle. Um, I had an interesting call the other day from this client, and he said he just returned from overseas. He's been overseas for the last 20 to 30 years, and he's trying to buy a house again, and he's in his 70s. And he's like, Look, I've owned a couple of properties before, and I, you know, silly me, I sold them all before I left. And he goes, I own the property in Sitoon, and he bought it. I was like, Oh, I'm scared to ask how much did you buy it for? He goes, Back in the day I bought it for whatever, and then I sold it for 300k. This property is now worth 3 million 20 years later, you know, it's 3 million. And that's what it shows that the the way the property market can increase, you just can't predict it. And everyone's like, oh, it's gonna crash, it's gonna crash, it's a bubble. We've been hearing this for the last 20 years, you know, and it's only keep increasing year on year. So you're right, like the sooner you can get onto the letter, whether it's property investment, and I'm and I'm always for diversifying, you know, have a property, have a portfolio, have something else on the side as well. So um awesome. Mark, any other parting thoughts before we wrap up?

SPEAKER_04: 29:33

No, just be kind to each other.

SPEAKER_01: 29:36

Be kind. I like that. We don't see that enough in the world.

SPEAKER_04: 29:42

Not at the moment.

SPEAKER_01: 29:43

No, and I just want to share something kind that Mark did for me when he turned up.

SPEAKER_00: 29:49

So I was recording this previous episode with crunch, and those that listened to the previous episode would have heard me go, What on earth is happening outside?

SPEAKER_01: 29:56

I've sent my 12 year old to wash the car because they were having this morning off school to bake for the for the bake sale later this evening. And I've got three 12 year olds in my household, and they're finished with their baking for the day. And they said, Oh, you know, we still got another hour. And I said, Cool, go and wash my car outside if you want lunch. And I was gonna order them pizza. And they were outside washing the car, and then suddenly I see that the 12-year-olds disappeared, and there's Mark outside hosing my car down.

SPEAKER_04: 30:26

Well, they were struggling with the hose. Thank you. And the soap was on the car. And you know, you can't leave the soap on the car.

SPEAKER_00: 30:33

Thank you. And for that, you win the kindness award of the day. Thank you so much, Mark.

SPEAKER_04: 30:38

It was absolute pleasure.

SPEAKER_01: 30:39

Absolute pleasure having you. And um, I just from my point of view, all I want to say is that clients like you and Shelly make me keep going. Because in today's world, everything is, you know, everyone wants to have everything done yesterday. There's a lot of pressure in our environment, a lot of um, a lot of clients that we deal with that are constantly, you know, on our cases because the banks are taking so slow. Like we are great at what we do, but then it's the bank side that we can't control. And when we come across clients like you that are patient, that are kind, that are just awesome to deal with, like it just fills my cup and fills my heart and makes me go, okay, tomorrow's another day. I want to have more mugs and shelleys in my life. So thank you so much from the bottom of my heart.

SPEAKER_04: 31:29

So total pleasure.

SPEAKER_01: 31:30

Thank you. And um, let's review those rates for you. See ya.

SPEAKER_04: 31:34

Let's do it.