Ever heard of the curse of knowledge? It's when experts forget that not everyone knows what they do. As seasoned buyer’s agents with over 45 years of combined experience, we sometimes assume that our listeners know as much as we do. And we forget that terms like LMI, equity, capital growth, and rentvesting can be really confusing for those new to property.

Today’s episode was sparked by a conversation with a good friend who recently watched a property seminar online. Despite our long friendship and frequent property discussions, he says he wished he'd learned about the fundamentals of property and leverage earlier, which made me realise that I often take for granted the fact that not everyone shares my base level of knowledge when it comes to property.

So we're correcting that by starting from scratch. Tune in as we cover the essential concepts of property without diving into the buying process, breaking down the foundational elements of property in a simple and accessible way. This episode is perfect for anyone — first home buyers, school-age kids, or just about anyone who’s curious about property basics. Let’s dive in!

Episode Highlights:

00:00 - Introduction

03:35 - You can live in a house that you own or a house that someone else owns

04:16 - You can buy a property to live in or an investment property that someone else lives in

05:07 - You can borrow money to buy a property

06:17 - When you borrow money, the lender uses the property as security

07:23 - Lenders will not lend the full purchase price of the property

08:21 - There are other costs that you have to pay for (stamp duty, legal fees, etc.)

10:59 - The difference between what the property is worth and the amount you owe the lender is called the equity

11:49 - Each lender has their own policies about who they’ll lend to and how much they will lend

13:16 - Each lender has different policies about how much they’ll lend for different types of properties

14:58 - There is no set price for a property

15:58 - Your choice of property purchase has the biggest impact on whether the value increases/decreases

16:39 - How compound growth applies to property

19:32 - A property’s value can go up and then down

20:27 - If the value goes up, it’s called capital growth – if the value goes down, it’s negative growth

20:58 - Equity is calculated as the difference between the current value of a property and the remaining loan balance owed to the lender

21:44 - If the value goes down and you owe the lender more than the property is worth, it's called negative equity

22:45 - You can use the equity in your property to borrow more money to purchase another property

24:39 - Some people buy and sell in less than five years

26:18 - Long term, people can use property as a way to build wealth

Resources mentioned in this episode:
Your First Home Buyer Guide Podcast Episode 141: Why Lender’s Mortgage Insurance Isn’t Always a Bad Choice https://homebuyeracademy.com.au/podcasts/141

Resources:
FREE MINI COURSE: How to price property like a professional https://www.homebuyeracademy.com.au/freecourse
Meet our recommended mortgage brokers at Home Buyer Academy https://homebuyeracademy.com.au/brokers
Visit our website https://www.homebuyeracademy.com.au/
Join our Facebook Group to get access to free monthly live Q&A sessions
https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia
Learn how to buy property without making a mistake with our ultimate 10-step online course for first time home buyers https://homebuyeracademy.com.au/YFHBG
If you have any questions or would like to be featured on our show, contact us at: Your First Home Buyer Guide Podcast support@homebuyeracademy.com.au
Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
Work with Veronica: https://www.veronicamorgan.com.au
Looking for a Brisbane Buyers Agent? https://www.propertypursuit.com.au/
Work with Meighan: https://www.linkedin.com/in/meighanwells/

If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey!
Subscribe on YouTube: https://www.youtube.com/@YourFirstHomeBuyerGuidePodcast
Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825
Subscribe on Spotify: https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f

Ever heard of the curse of knowledge? It's when experts forget that not everyone knows what they do. As seasoned buyer’s agents with over 45 years of combined experience, we sometimes assume that our listeners know as much as we do. And we forget that terms like LMI, equity, capital growth, and rentvesting can be really confusing for those new to property.
Today’s episode was sparked by a conversation with a good friend who recently watched a property seminar online. Despite our long friendship and frequent property discussions, he says he wished he'd learned about the fundamentals of property and leverage earlier, which made me realise that I often take for granted the fact that not everyone shares my base level of knowledge when it comes to property.
So we're correcting that by starting from scratch. Tune in as we cover the essential concepts of property without diving into the buying process, breaking down the foundational elements of property in a simple and accessible way. This episode is perfect for anyone — first home buyers, school-age kids, or just about anyone who’s curious about property basics. Let’s dive in!
Episode Highlights:
00:00 - Introduction
03:35 - You can live in a house that you own or a house that someone else owns
04:16 - You can buy a property to live in or an investment property that someone else lives in
05:07 - You can borrow money to buy a property
06:17 - When you borrow money, the lender uses the property as security
07:23 - Lenders will not lend the full purchase price of the property
08:21 - There are other costs that you have to pay for (stamp duty, legal fees, etc.)
10:59 - The difference between what the property is worth and the amount you owe the lender is called the equity
11:49 - Each lender has their own policies about who they’ll lend to and how much they will lend
13:16 - Each lender has different policies about how much they’ll lend for different types of properties
14:58 - There is no set price for a property
15:58 - Your choice of property purchase has the biggest impact on whether the value increases/decreases
16:39 - How compound growth applies to property
19:32 - A property’s value can go up and then down
20:27 - If the value goes up, it’s called capital growth – if the value goes down, it’s negative growth
20:58 - Equity is calculated as the difference between the current value of a property and the remaining loan balance owed to the lender
21:44 - If the value goes down and you owe the lender more than the property is worth, it's called negative equity
22:45 - You can use the equity in your property to borrow more money to purchase another property
24:39 - Some people buy and sell in less than five years
26:18 - Long term, people can use property as a way to build wealth
Resources mentioned in this episode:
<ul>
<li aria-level="1">Your First Home Buyer Guide Podcast Episode 141: Why Lender’s Mortgage Insurance Isn’t Always a Bad Choice <a href="https://homebuyeracademy.com.au/podcasts/141">https://homebuyeracademy.com.au/podcasts/141</a></li>
</ul>
Resources:
<ul>
<li aria-level="1">FREE MINI COURSE: How to price property like a professional <a href="https://www.homebuyeracademy.com.au/freecourse">https://www.homebuyeracademy.com.au/freecourse</a></li>
<li aria-level="1">Meet our recommended mortgage brokers at Home Buyer Academy <a href="https://homebuyeracademy.com.au/brokers">https://homebuyeracademy.com.au/brokers</a></li>
<li aria-level="1">Visit our website <a href="https://www.homebuyeracademy.com.au/">https://www.homebuyeracademy.com.au/</a></li>
<li aria-level="1">Join our Facebook Group to get access to free monthly live Q&amp;A sessions</li>
<li aria-level="1"><a href="https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia">https://www.facebook.com/groups/yourfirsthomebuyerguideaustralia</a></li>
<li aria-level="1">Learn how to buy property without making a mistake with our ultimate 10-step online course for first time home buyers <a href="https://homebuyeracademy.com.au/YFHBG">https://homebuyeracademy.com.au/YFHBG</a></li>
<li aria-level="1">If you have any questions or would like to be featured on our show, contact us at: Your First Home Buyer Guide Podcast <a href="mailto:support@homebuyeracademy.com.au">support@homebuyeracademy.com.au</a></li>
<li aria-level="1">Looking for a Sydney Buyers Agent? <a href="http://www.gooddeeds.com.au">https://www.gooddeeds.com.au</a></li>
<li aria-level="1">Work with Veronica: <a href="http://www.veronicamorgan.com.au">https://www.veronicamorgan.com.au</a></li>
<li aria-level="1">Looking for a Brisbane Buyers Agent? <a href="https://www.propertypursuit.com.au/">https://www.propertypursuit.com.au/</a></li>
<li aria-level="1">Work with Meighan: <a href="https://www.linkedin.com/in/meighanwells/">https://www.linkedin.com/in/meighanwells/</a></li>
</ul>
If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey!
<ul>
<li aria-level="1">Subscribe on YouTube: <a href="https://www.youtube.com/@YourFirstHomeBuyerGuidePodcast">https://www.youtube.com/@YourFirstHomeBuyerGuidePodcast</a></li>
<li aria-level="1">Subscribe on Apple Podcasts: <a href="https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825">https://podcasts.apple.com/ph/podcast/your-first-home-buyer-guide-podcast/id1544701825</a></li>
<li aria-level="1">Subscribe on Spotify: <a href="https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f">https://open.spotify.com/show/7GyrfXoqvDxjqNRv40NVQs?si=7c8bc4362fab421f</a></li>
</ul>

Your First Home Buyer Guide. Get there without missing a step.

Your First Home Buyer Guide. Get there without missing a step.

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