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Podcast: Pat Just Bought A House (Q&A with a New Homebuyer)

March 24, 2021

In this episode…

A special show today, as we discuss Pat’s recent home purchase.

I grill him for the details and ask all the important questions – like why, where, how much he paid, and whether this affects his financial independence plans?


Listen to the show…

(you can download the mp3 file here)


Discussion points…

  • A quick run-down of what’s happening  (01:55)
  • Why Pat decided to buy, and what he was looking for in a property  (05:17)
  • Price bracket and first homebuyer benefits  (07:25)
  • Current and future plans  (09:03)
  • How does this affect Pat’s financial independence plans?  (10:24)
  • Interest rates and online lenders  (15:12)
  • A more in-depth look at fixed vs variable rates  (19:33)
  • What gets Pat excited about owning a house  (26:04)
  • Storing cash in an offset account  (30:27)
  • Pat’s thoughts and reflections on the home buying experience  (32:36)


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11 Replies to “Podcast: Pat Just Bought A House (Q&A with a New Homebuyer)”

  1. Hi Boys ,
    Congrats Pat!!
    Question: You mentioned that there were around 17 parties bidding for the property you purchased . Why then didn’t the vendor put the property up for auction? Would this have made a difference in the final price ?
    Here in Sydney , we are seeing prices , hundreds of thousands of dollars above the reserve !! …crazy


    1. That’s a good question Jimmy. May just be the seller was more comfortable with the idea of selling this way (auctions can be pretty stressful) and wasn’t sure the market would respond so strongly to this property (sometimes it’s hard to tell).

  2. Hi guys …. great segment today. Happy 1st birthday & congratulations to Pat. I had so many laughs today remembering the scorching hot property market back in 1988 Brisbane. I was newly married late that year and had same experience as Pat ….. if you didn’t have an offer in by 4pm you simply missed out!! The big difference then was that the interest rates started racing and didn’t stop till 21%. Plus we went into recession 90-91. Short period but I lost my job whilst on maternity leave. Owning a home is wonderful particularly when starting a family. Keep up the good work.

    1. Thanks for the support Angela! Yeah, wow, I can’t even imagine how stressful it would be with those conditions and rapidly rising interest rates. From 20% interest rates to 2%… quite hard to wrap your head around what a huge difference that is!

  3. Congrats pat. I would have liked to know more about how you will mange this as a rental. Are you using an agent? What is are your expected returns as a rental before you live in it

    1. Good questions. I would guess Pat is using an agent and has no expectations of getting a certain return before moving into it – this is just the short-term situation he’s in. He will just get whatever market rent is less costs, and potential capital gains or losses weren’t a consideration (I guess that’s why I didn’t ask questions down these lines).

  4. Dave, what’s happing with your investment properties, with the Perth market having a bit of recovery are you now looking at selling?
    At the risk of inflaming the hordes, you were also talking of buying a PPoR?

    1. The property market has picked up, but the media is probably exaggerating. In Perth we’ve had 7 years of price falls and then we get a 6 month recovery and ppl are losing their minds. Our plans aren’t really changing, we’ll probably sell one next year, though at this stage that is likely to be our Brisbane property. It may also be possible to sell an investment here in Perth, keep the loan open and buy a PPOR, so we’ll consider that at the time and see whether it’ll work out.

  5. Hey guys, interested in this question around Fixed vs variable rates, do you have the page you were referencing at all? I’ve just gone fixed for 2 years, then will most likely revert to variable, I assumed the variable would be the same for everyone, as its variable it will go up or down, so wherever it’s at I’d jump in at when my 2 years fixed is done with.
    For example the variable now could be 2.49% (vs Fixed 2.09%) say in 2 years time the RBA jacks up the rate, I’d expect the variable to go up too, say 2.99% for instance. Therefore I’d expect my fixed to roll into variable at 2.99%, is this not how it works?

    1. Hey Dean. Here is the article we mentioned – – though I think this may be unique to Tic Toc (it’s not all that clear to be honest). Other banks will often move up and down as rates change, and some even promise this.

      I would expect the same thing to happen as you said, more often than not. But it may revert to an even higher rate and then you’d simply re-negotiate, re-fix, or re-finance elsewhere (if possible).

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