The Cost vs. The Joy of Living  

Australia is a nation of property addicts. We talk about buying property, we talk about renting property, but we rarely talk about actually living in a property.

The average Australian is spending roughly $950 per week on their mortgage or $700 on rent. That’s big money! And for such a significant cost, whether you’re renting or buying, that home should be perfect for you.

So, Fox & Hare Advisor Julie Bullen sat down with Martine Cooper, Founder of Melbourne’s Martine Cooper Interior Design (contact details at the bottom!), to discuss the ‘live and die by’ rules of interior design.

The goal? To find out how you can stop dreaming about the perfect space and go from ‘decorating’ to transforming your space into bespoke, one of a kind anchor for you, your goals and dreams. 

 

Watch the video briefing or read the article below!

 

In Short:

✨ Feelings Over Photos: Martine says don’t start with a pretty picture; instead start with how you want the space to feel (e.g., cozy and calm vs. energising).

🗺️ Map the Mission: Create a mind map to answer the Why, What, How, When, and Who of your new home – before you ever step foot in a shop.

🛠️ Invest in the Fixed: Buy the best quality you can afford for things that aren’t moving for 10 years, like flooring and fixtures.

 

Your Next Step:
Read on or watch the webinar recording below. If you want to discuss how to budget for your next big renovation project, you can reach out to your team through the portal

 

 

 

Where to Start Your Renovation.

Most of us, says Martine, approach design backwards. We scroll through Instagram, see a photo of a room or space we love, and decide that’s the one for us. 

But, she suggests we take a different approach to design in our homes and ‘start where we want to end.’

Rather than thinking about how you want the space to look, you can find better outcomes by starting with how you want the space to feel.

If you’re coming home from a high-pressure job, do you really need your living room to be a brightly coloured, high-energy music room, or do you need it to be a cozy, calm sanctuary to reset? 

‘Before you even think about picking a paint swatch, you have to pick a feeling‘ she says. 

 

 

How to Plan Your Renovation 

Once you’ve pinned down the vibe, Martine suggests a specific assignment to bridge the gap between that feeling and your four walls – what she calls “A Day in the Life.”

“Keep a notebook close by for a week,” she says. “Capture how you’re moving around your space in the morning, afternoon, and evening.”

This has nothing to do with “style” she says. “It’s to find the frictions in your home.

If you’re looking for a space to find your zen, but the stack of magazines in the corner that just keeps piling up, or the fact that the throw blankets don’t have a home is stressing you out, that’s counter productive to your goals.” 

Once you’ve identified the “frictions” in your daily life – the realities of your space that clash with the vision and feeling your looking to create – it’s time to move to a formal brief.

 

 

The Key to a Successful Reno.

Martine is a mind-mapper, and she uses a central goal to answer five key questions before a single trade is called: Why, What, How, When, and Who.

This is your strategy phase and the framework you produce might look like this:

 

Why am I making this change? (e.g., the current feeling is jarring).

What exactly am I going to do? (e.g., address the oversized couch).

How will it get done? (e.g., reorienting furniture vs. buying new).

When will this get done? What is the timeline? (e.g., is there a new baby or a Year 12 student studying for finals – making this a bad time for disruption?).

Who: Who do I need? (e.g., painters, removalists, trades).

 

If your “Why” is that the room feels cluttered, your “What” might be addressing a couch that’s too big for the space. But before you hit the shops, you need a realistic “How” – which starts with your budget and a timeline.

 

 

How to Choose Colour 🌹🦋🥝

Finding Your Camp: Complementary vs. Contrast 🎨
Before you open a single paint tin, you need to work out which “colour camp” you live in. Martine explains that most people fall into one of two categories:

• Complementary:
  You prefer things to feel balanced, tonal, and quiet. You’re looking for colours that sit next to each other on the wheel to create a sense of calm.

• Contrast:
  You want drama, brightness, and a bit of “pop”. You gravitate toward colours that sit opposite each other on the wheel to create high energy.

Working out where you stand can on colour will provide a useful guide for your creativity. Use that logic to select your primary palette and any accent pieces to ensure the room doesn’t feel like a collection of random, expensive, accidents!

Zoning for Vibe 🏘️
Of course, you don’t have to commit to one camp for your entire property. “You can be flexible and chose to design to zone your home based on the room’s purpose.” Says Martine.

“You might have three or four rooms in your home that all kind of fit into the complementary schemes,” She notes. “But for a specific area – like a record-playing room, a home bar, or a vibey sitting room – you might pivot to Contrast to create a totally different atmosphere. And that is totally fine!” 

Nature’s Cheat Sheet 🌿
If you’re struggling to find combinations that actually work, look to your surroundings. Martine’s rule of thumb? Look to nature.

Colour is notoriously difficult because they all – even “white” and “grey” – have hidden undertones of yellow, red, or blue that you might not notice until it’s too late. Nature rarely seems to get it wrong. So, if you see colours interacting in a plant or a landscape and they feel “right,” they will very likely feel comfortable and cohesive in your home.

The Professional Nudge 💡
If you’re still feeling uncertain, don’t just guess—get a paint colour consultation. Most paint shops offer these, and Martine considers them a high-ROI activity.

“Having professional eyes identify those sneaky undertones before you buy 50 litres of paint can save you thousands in “redo” costs and ensure you actually achieve the feeling you’re after.” She says. 

 

 

How to Choose Your Fixtures 🚰💡🚪

The 10-Year Test: Are you Staying or Playing? 🏠

Once your palette is set, it’s time to look at the elements in your space that won’t be moving for a while, AKA your ‘hard fixtures’ – flooring, tiles, taps, sinks, etc.

Here, Martine’s rule of thumb is to let your long-term goals dictate your bravery:

• The 10-Year Stay:
  If this is your “forever” home or a long-term anchor, be brave. Choose the textures and materials that you genuinely love and that will make you feel good every day.

• The Investment Play:
  If the property is a stepping stone or a short-term investment, play it safe. Look at what is currently performing well in the market and stick to a palette that has broad appeal for future buyers or renters.

Quality Over Everything ✨

Martine’s hard and fast rule for fixed items is to buy the best quality you can afford. Because these items are literally built into the property, they are notoriously difficult and expensive to change.

Choosing low-quality cabinetry or a cheaper stone, that later turns out to be porous, might save you a few dollars on the day, but the flow-on impacts of having to replace a failed vanity top or water-damaged floor in just a few years will far outweigh the initial saving.

By investing upfront, you aren’t just buying “style”—you’re avoiding a future maintenance trap that could derail your broader financial goals.

The good news? Buying high quality doesn’t always have to mean paying top-tier retail prices if you know where to look.

Maximising Value: Bespoke Style on a Budget 💎

You can still secure high-end, long-lasting materials and fixtures without a crippling price tag – if you’re willing to do a little legwork. Martine recommends signing up for the mailing lists of your favorite suppliers and staying alert for outlet sales or floor-stock discounts.

“Sign up to your favorite places and make sure that you’re on their mailing lists,” she suggests. “They often have outlet sales… at least 50% off what would be full price”.

But her absolute favorite “luxury hack” for non-designers is the Stone Offcut.

“Local stonemasons often have beautiful pieces of high-quality stone left over from massive jobs. These offcuts—which someone else paid thousands for—are often the perfect size for a laundry vanity, a powder room top, or a single feature shelf.

It really does elevate and give personality to a space,” She shares.

The “Biggest Bang for Your Buck” 💥

“I honestly think that the two areas that I see the most impact when we renovate, and it doesn’t matter what the budget is, is flooring and paint,” says Martine.

If your budget is tight, you don’t always need to rip up old timber boards.

“Sometimes when you work with a really good sander and repolisher, you can end up with a really nice result,” she notes. “It can change the way you feel about being in the home”.

Combined with a fresh coat of paint to create a comfortable backdrop, these are the smartest dollars you can spend to transform your atmosphere without a full structural overhaul.

 

 

How to Choose Accessories 🛋️✨

Linking with Intent 🔗

“One of the biggest myths in design is that you have to pick a single label like ‘Japandi’ or ‘Hamptons’ and stick to it” Martine says.

You absolutely can mix styles, she shares, quoting a recent job that used a 15th-century Renaissance painting as the focal point for a 1970s mid-century style home. 

The only requirement? That you do it with intent.

The secret to making different styles work together is creating subtle “links” throughout the room. You can do this by looking for common threads in:

• Colour: Repeating a specific shade from a focal piece in a cushion or a vase.

• Pattern & Shape: Repeating a geometric line or an arched curve in different areas.

• Proportion: Ensuring the scale of your pieces complements rather than crowds each other.

By creating these links, you pull a room together into a cohesive story rather than a collection of random objects.

The “Main Character” Strategy ⭐

To avoid a space that feels “too loud or in your face,” your room should have a clear focal point says Martine.

Think of the space like a stage play: you need one or two “main characters” – a fireplace, a large artwork, or a statement piece of furniture – and everything else should be the “supporting cast”.

“You want to journey around the room and enjoy what you’re seeing,” Martine says. “If every accessory is trying to steal the spotlight, your eye has nowhere to rest, and the room can starts to feel too busy or cluttered.”

The trick to making this feel intentional?

Use your “main stars” as a source for your ‘links’. If you have a beautiful green statement chair, repeat that specific tone of green in smaller accessories throughout the room to pull the eye along the journey.

How do you keep the supporting cast in check? 

You can focus on texture over colour, says Martine. Instead of adding five different bright colours, add five different textures in similar tones—think a linen cushion next to a velvet one, paired with a chunky woven rug.

This can add depth and interest without making the room feel like it’s screaming for your attention. Of course, everybody’s taste is different. Don’t be afraid to try new things!

 

 

How to Light Like a Pro 💡

Lighting is one of the most impactful yet underrated elements of a home.

Most people default to overhead downlights, but Martine recommends adding extra depth,by taking a  layered approach to lighting.

The trick, she says, is to observe the natural light in your room at morning, noon, and night. Then, add in extra lighting based on what you want to highlight and how you’d like to feel:

🛋️ Focal & Task Lighting:
Don’t just light the air; light the objects. Use directional lighting to “wash” a textured brick or tiled wall or highlight a specific piece of art to create a point of interest.

🕯️ Moody & Ambient Lighting:
Move beyond “on or off”. Incorporate wall lights, dimmers, or floor lamps that can be softened in the evening to completely shift the energy of the room.

💡 The Renter’s Revolution:
If you’re in a rental and don’t have power points exactly where you need them, Martine recommends rechargeable LED lamps. These USB-powered lights can be carried wherever you like – indoors or outdoors – to create an instant atmosphere without needing an electrician.

Trust Your Gut: The Power of the Edit ✂️

As you put the finishing touches on your space, Martine’s final advice is to embrace the power of the edit. It’s easy to get carried away with accessories, but often the best thing you can do for your room is to step back.

“I often do this myself,” she shares.

“I’ll put all the stuff down, then I’ll take one thing away and realise – actually, that looks or feels great”.

By trusting your gut and giving your space room to breathe, you can ensure that your home remains a functional and up to task – whatever that looks like for you. Rather than a showroom or copy of a space that serves somebody else’s needs.

How to Contact Martine:

To see more of Martine’s work or to book a session to decode your own home’s potential, reach out via the links below.

Explore her work: MCID Website

Get inspired: Follow Martine on IG

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

Stormy Seas Ahead?  

Recently, Fox & Hare Co-founder Glen Hare caught up with Hugh Lam, Investment Strategist at BetaShares, to discuss the escalating situation in Iran and the broader Middle East.

We know that when the news cycle gets “tumultuous,” it’s normal to feel uncertain about your financial future. So, we’ve put together this post and the recorded session below to bridge the gap between global headlines and your personal portfolio.

Read on to find out how to “turn down the noise” and stay in control of your journey toward financial freedom – no matter what’s going on out there. 

 

In Short:

⛽️ Conflict in the Strait of Hormuz directly impacts Australian petrol prices, which keeps inflation high and can trigger interest rate rises from the RBA.

💸 Yes, markets have seen dramatic pullbacks! But both Hugh & Glen recommend viewing this volatility as a “discount” on long-term investments rather than a reason to panic.

⛈️ Transitioning toward defensive sectors like consumer staples and maintaining a diligent, long-term strategy is key to weathering geopolitical storms.

 

Watch the video briefing or read the article below!

 

Your Next Step:
Read on or watch the webinar recording below to find out more about the situation. If you want to discuss your personal response and strategy in more detail, you can reach out to your team through the portal.

 

 

Why Does a War in Iran Affect my Hip Pocket?

Why is a conflict thousands of kilometres away impacting your Saturday morning errands? It comes down to a single “choke point” says Hugh.

“Roughly one-fifth of the world’s oil passes through the Strait of Hormuz, he notes. “And when this supply is threatened or disrupted, as the current war has and continues to do, we see an immediate shock to global markets.”

In short, things get “tumultuous” there, or in any other major energy production or shipping the impact hits home in two major ways:

You’ll feel it at the petrol pump first.

Then, because almost everything we buy is moved by trucks or ships, these higher energy prices will mean the cost of your groceries and lifestyle spending starts to creep up, too says Hugh.

This “energy shock” keeps inflation “higher for longer” and will be a key driver keeping the RBA hesitant to cut interest rates, which then flows on to meaning relief for your mortgage or rent is also likely further off than we’d like.

 

 

It’s Not a “Crash” It’s a Fire Sale 🔥 

It’s one thing to feel the squeeze at the petrol pump, but seeing your portfolio take a hit at the same time can feel like a double blow.

When the ASX drops by 7% in a single month, the natural reaction is to feel “uncertain or scared” at the very least.

But for Fox & Hare members—most of whom are in the wealth accumulation phase of their lives—Glen and Hugh suggest a total perspective flip.

“Arguably, if you were investing in the Australian market today, you’re going to get a 7% discount to what you would have got just over a month ago,” says Glen.

While it’s tempting to hit the brakes when the news cycle gets loud, the biggest danger isn’t the market drop—it’s the “cost of doing nothing”. If you’re a regular investor (which nearly every Fox & Hare member is) staying diligent and sticking to your plan, is essentially buying your future freedom at a lower price point.

These pullbacks are actually a rare opportunity for those of us with time on our side. Glen points out that the current market situation is effectively a 7% discount compared to only 30 days ago.

Our advice to our member is simple, he says: turn down the news, stay the course, and let the long-term numbers do the heavy lifting – let others be distracted by the headlines.

 

Where to Look When Markets Wobble 👀

While we’re busy “turning down the noise,” it’s still important to understand where the smart money moves during these cycles. As Hugh points out, “when global markets get shaky, investors tend to pivot toward defensive sectors, which obviously means we’re going to see them perform a little bit better.”

He highlights two key areas that tend to show more resilience during these “tumultuous times”:

🍚 Consumer Staples:
Think of the non-negotiables. These are the things people have to buy regardless of what’s happening in the news—like groceries and household essentials.

⚡️ Energy Exposure:
Because this conflict is centered in a major oil-producing region, specific energy sectors can act as a natural hedge, often performing well even when the broader market is down.

Of course, the goal isn’t to try and “outsmart” the market with a lucky guess says Glen. It’s about ensuring your portfolio has the right mix of “anchors” to stay steady while you wait for the long-term numbers to do their thing.

 

 

 

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

Our memberships have changed! 

Recently, Fox & Hare made the most significant changes to our ongoing membership structures since the business’s inception.  

To ensure our members get a proper birds eye view of these updates, Fox & Hare Co-founder Glen Hare and Head of Advice Courtenay Walker caught up with Community and Marketing Lead, Liam Hartley, to discuss the changes.  

We’ve put together this post and the recorded session below to provide the clarity our members have been asking for. Read on to find out more about your updated membership! 

 

In Short:

💡 We are transitioning to a more “clear, proactive, process based service” based on member feedback. 

🧩 We have introduced a “Four-Part Strategic Review” cycle that ensures all members know exactly what comes next in their advice journey. 

⚖️ Tiered memberships remain, but have been reimagined as Foundation, Plus, and Premium—tailored to specific life complexities.

 

Watch the video briefing or read the article below!

 

Your Next Step:
Read on or watch the webinar recording below to find out more about the changes. If you want to discuss the changes in more detail, you can reach out to your Adviser through the portal.

 

 

Why our Memberships Changed

Fox & Hare turned eight this past October, and since our inception, we have “operated quite organically” says Glen Hare, Co-founder and Financial Adviser at Fox & Hare.  

In the early days, this approach “worked really, really well” because it allowed our team to “deliver the service that [members] wanted on the terms that they wanted”.  

However, as the community has grown, we recognised – and received significant feedback – that this high level of flexibility was creating confusion and differences in the services that our members were receiving. 

We listened closely to that feedback, and a common theme emerged. Many members were telling us they were not sure when they were next meeting with their adviser and that they were not sure what would happen next. 

To solve this, we took a step back to consolidate these suggestions and build a “really clear, proactive, engaging service”.  

The result is a new, structured advice journey designed so that members know exactly when they are going to have that next touchpoint with our team. 

 

 

How the Memberships Changed: The Four-Part Strategic Review 

By far the most consequential update we have made is shaping the advice journey into a “four-part strategic review” cycle says Courtenay Walker, Head of Advice at Fox & Hare.  

“This updated process sits at the heart of the membership changes and represents our commitment to providing a really clear, proactive, engaging service”.  

Regardless of your membership tier, this new four-step cycle ensures you are never wondering what comes next in your advice journey, because you will always be working through a clear roadmap for what comes next. 

There are four elements to the strategic review cycle: 

1. Goal Assessment:
   In the goal assessment session you will take stock on where you are and see how your life or values have shifted since you last spoke with your advice team.

2. Progress Report:
   You will then receive a “point in time snapshot” of your net worth, assets, and liabilities. This report is designed to answer the most important question for you: “Am I heading in the right direction?”

3. Strategy Development:
   This is the “more technical component” of the review. We dive into your numbers to work out exactly what needs to change to align your money with your new goals.

4. Advice Delivery & Implementation:
   In step four, we deliver your formal written advice. Once you’re happy with the plan, your team takes care of as much of the implementation as possible, so you can get back to living your life. 

 

The Three Membership Programs: Support for Every Stage of Life 

Financial needs change as we move through different stages of life. To ensure we can provide the right level of support at the right time, we have refined our three membership tiers to match every life stage our members: 

• Foundation: 
  This program is designed for those focusing on the foundational elements of wealth building like cash flow, tax, super, debt, and investments. It covers the essential pillars that will ensure you are heading in the right direction.
   

• Plus: 
  As life becomes more complex— think multiple investment properties or navigating employee share schemes like RSUs—the Plus program provides the extra layer of advice you need. 
   

• Premium: 
  This is our “all-inclusive program” for members managing trust structures, companies, [or] self-managed super funds. It offers the highest level of support, including unlimited modelling and advice on demand to handle the moving parts of a complex financial empire. 

The new memberships are built to support specific stages of life, but also with an eye to the expectation that your needs will evolve.  

For this reason, they remain flexible and if you hit a milestone that requires extra attention and, members can switch between packages to get the specialised support they need – with the option to move back down once things have settled. 

 

 

Connecting the Crew: Community & Events 

Fox & Hare operates as a “99% virtual business, but that doesn’t mean our members don’t want face-to-face time and connection.  

We’ve heard the feedback that members are seeking a consistent connection, and that getting to know your fellow Fox & Hare members is something that is really important to you. 

As a result, we have committed to fostering that sense of community and, whether you prefer to connect digitally or in person, we will be focusing on three key areas that will bring this desire to life moving forward: 

1. Webinars & Community for All:
   Every Fox & Hare member will have access to Fox & Hare webinars that we run currently and will be increasingly delivering, as well as our new online community launching this May.

2. Events for Plus & Premium:
   Members on our Plus and Premium programs will have dedicated access to in-person events, providing more opportunities to connect with the crew in the real world.

3. Tailored Experiences for Premium:
   For those on our Premium program, we will be curated “much smaller, more tailored premium VIP events” designed specifically for your needs. 

Your Next Step 

The goal of these changes is simple: to ensure every member receives the “clear, proactive, process-based service” they’ve been looking for.  

We want to make sure every member is on the program that provides the most value for their current stage of life and that they feel completely confident in and certain of the next step on their journey toward financial freedom. 

If you have specific questions about how these updates impact your membership, or if you’d like to adjust your current program, you can reach out to your advisor or associate via the portal. 

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

At Fox & Hare, the advice over 2025 has been largely consistent: 

ignore the noise, trust the plan, and stay the course.

But in a year defined by extreme whiplash – from the sudden panic of ‘Liberation Day’ to a market where just seven companies seemed to drive the entire global rally… it is fair to ask: Why?

To help you understand the method behind the madness, Fox & Hare Community Lead, Liam Hartley, went behind the scenes with Tamas Calderwood, Investment Strategist at Vanguard get the tea on 2025.

Tamas isn’t just a strategist; he is an industry veteran. With an MBA from Columbia University and over 14 years at MSCI (the engine room behind global market indices), he possesses a rare, technical understanding of the “plumbing” of the financial markets.

In this 2025 recap, Tamas walks us through the hard data of the last 12 months to demonstrate exactly how Vanguard manages your portfolio, captures growth, and works to ensure your money is set to weather exactly this kind of storm.

 

In Short:

🪡 Skip the Needle, Buy the Haystack:
The stats are brutal: over a 20-year period, fewer than 10% of stocks actually beat the index. Tamas explains why trying to pick them is a losing game and how Vanguard ‘win’ against the odds.

🥇 The 2025 Scorecard:
While Tech grabbed the microphone, the quiet achievers stole the show. Gold skyrocketed 44% and Australian Small Caps had a stellar year, up 25%

🔮 The 2026 Outlook: With US valuations looking “stretched,” Tamas predicts that International shares are primed to outperform the US market over the next decade.

 

Watch the video briefing or read the article below!

 

Your Next Step:
Read on or watch the webinar recording below, and beat the FOMO by getting the facts. If you want to discuss your next move (or non-move!) with pros, you can reach out to your team directly through the personal finance portal.

 

 

Skip the Needle, Buy the Haystack 🪡

2025 continued the trend of massive “missed” opportunities. A small number of assets (like Gold) and equities (like Nvidia) skyrocketed in price – leaving many investors feeling like they had missed the boat.

This strategy – trying to identify and buy specific individual companies yourself in the hope they outperform the rest is what we call “stock picking.”

And we often assume that stock picking is a 50/50 game. You either pick a winner, or you don’t.

That is wrong.

Tamas points to the long-term data on the ASX 300 as an example.

“Over the last 20 years (2004–2024), the Australian share market index went up a massive 361%.” he shares

“But the “median” stock (the company right in the middle of the pack)? It went down 10.7%.”

In plain English, if you tried to pick a winner at random, you’d be statistically more likely to lose money than to simply match the market. In fact, only 8.2% of companies actually outperformed the index over those two decades.

“Basically, to beat the index, you’ve got to choose stocks that are within that 8% of the ASX300 in order to beat the index over time. And statistically, that’s just not that likely.” Says Tamas

The “Skewness” Trap

This is what statisticians call “skewness” – a tiny handful of superstars drive all the returns, while the vast majority of companies do nothing (or go backwards).

In the US, it’s the same story. The S&P 500 rose 616% over 20 years, while the median stock rose just 68%. The massive growth came from a tiny sliver of companies (like Nvidia, Apple, and Tesla).

If you try to find those superstars yourself, you are hunting for a needle in a haystack. The odds are stacked against you.

Tamas’s advice? Stop looking.

“Don’t look for the needle in the haystack, just buy the haystack, because you get the needles. You get all the needles that are in there.

By owning the index (the haystack), you automatically own the winners (the needles) without the risk of betting everything on the losers” He says.

And we saw this exact dynamic playing out globally over 2025, where a tiny group of US Tech giants (the “Mag 7”) drove massive gains, while the rest of the market lagged behind.

It is easy to look back and say “I should have bought Nvidia,” but the stats prove that finding the next Nvidia before it pops is, statistically speaking, close to impossible.

On the other hand, despite the noise and the crazy headlines, if you were invested in, and stayed in the index this year, you didn’t miss out – you captured the growth of those giants automatically, without taking the gamble.

By buying the haystack, you owned the needles!

 

 

2025: The Year of the “Everything Rally” 📈

We wouldn’t blame you for thinking 2025 was about tech, tech and only tech – tech, and AI in particular played an outsize role in the markets this year – but Tech was not the only game in town.

While the “Mag 7” continued to grab headlines, the data shows that 2025 was actually a “Rising Tide” event.

“It’s been a pretty good year across the board,” Tamas confirms.

Even the “boring” stuff made money. Global equities were up 13% and Australian shares rose 12%. If you were diversified (if you “bought the haystack”) – which all Fox & Hare members are, you won almost everywhere you looked.

The “Hype” Was Real

Of course, when markets rally as hard as they have in 2025, it’s inevitable we’re going to see chatter about bubbles and corrections. This is exactly what’s happened toward the end of 2025 as the press have grown jittery about the size of tech stocks and their weight within the market.

But Tamas points out that this time, the growth is backed by cold, hard cash.

“One thing that is driving the valuation of US equities at the moment is profit margins,” he explains. “Profit margins are about 28% above the historical average.”

So, yes, prices are high – but companies are making the money to back up their massive valuations.

🤫 The Quiet Achievers (That Beat the Hype)

It is easy to get tunnel vision when one sector (US Tech) is screaming so loudly. But a healthy portfolio is never just one thing – and 2025 gave us a masterclass in why we spread our bets.

While the “Mag 7” were doing the heavy lifting in the US, they were not the only star performers.

“Gold is a standout performer this year. We all know that story, up 44%,” Tamas notes.

But there was a rally much closer to home that didn’t get anywhere near as much airtime, “Australian Small Caps had a great year, up 25%.”  Tamas shares.

These are the companies outside the ASX100 – the innovators and builders that aren’t yet household names and while the big end of town chugged along down under, these smaller companies sprinted ahead, delivering returns that rivalled the best of the US tech sector.

 

 

The Crystal Ball: What’s Coming in 2026? 🔮

So, where do we go from here?

If 2025 was the party, Tamas thinks we might need to tamper our expectations for 2026 to “dinner party” – a little quieter, a little more sensible, but still a good time.

He’s is quick to remind us that “the future is incredibly difficult to predict”. However, Vanguard’s data points to three big trends that are potentially coming our way:

1. The “Tall Poppy” Shift
The US has had an incredible run, but valuations are looking “stretched” says Tamas.

Because of this, Vanguard expects the leadership baton to pass along to other markets. “We would therefore expect US shares to underperform international shares over the next few years,” he predicts.

Why? “Simply because international shares don’t have that same valuation… they’ve got a lower PE ratio.” A rough translation into English would be: The US is expensive. The rest of the world is on sale.

2. The Return to Normal (Bonds are Back)

For the last few years, Term Deposits felt like a cheat code – risk-free cash that paid decent interest. But Vanguard are predicting that “weird” window where cash beat bonds is closing. “

We’re heading back into that sort of normal state of affairs now,” says Tamas. “On average, bonds pay more than term deposits. You get paid more for longer term debt.” If you have been hiding out in cash, it might be time to wake your money up.

3. A Little “Tough Love”

Finally, Tamas suggests we start managing our expectations.

We have been spoiled by double-digit growth, but the next decade will likely look different. “The future’s likely not going to be as good as the last 10 years purely because we’ve had a really good decade” he shares.

Vanguard projects Australian equities to return around 5.8% per annum over the next decade. This doesn’t mean the sky is falling. “We think that markets are going to keep trucking along pretty well,” he assures us. Just not that well, apparently.

 

 

The Bottom Line

If 2025 taught us anything, it’s that nobody knows what is going to happen next.

Even the professionals with billions of dollars on the line consistently get their predictions wrong. The media might pretend to have a crystal ball, but 2025 proved – once again – that time, patience and diversification are the best bets in the house.

We’ll leave the final word to Tamas:

“The future is incredibly difficult to predict. You just can’t do it… That’s why you have a diversified portfolio. That’s why you buy and hold and stay with your investments over the long term.”

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

What happened with your portfolio in 2025?

It goes without saying this year has been a wild ride.

From the re-election of Donald Trump and “Liberation Day” shaving trillions of dollars off the global market in days, to Nvidia’s market capitalisation surpassing the economies of every country in the world bar the USA & China.

2025 has been BIG.

But headlines don’t build wealth-strategy does.

So, instead of guessing what these massive global shifts mean for your investments, we went straight to the source! And secured a private market briefing with Tom Wickenden, Investment Strategist at BetaShares, to cut through the noise and get the truth about the market’s performance over the past 12 months and into 2026.

 

In Short:

📉 The “Liberation Day” Dip:
Markets dropped ~9% early in the year due to fears over Trump’s tariffs, but recovered to new highs within a month once the panic settled.

😴 Playing Dead was a Winning Strategy:
Many “active” fund managers panicked and moved to cash during the drop, missing the rebound. By staying invested, Fox & Hare members captured the 14% upside.

❓The “Why” Behind the Growth:
US Tech giants (like Nvidia) drove the majority of the growth. Crucially, this wasn’t just “hype”- their profits actually grew faster than their share prices.

♻️ The Ethical Reality Check:
Ethical funds lagged slightly behind the broad market this year as “dirty” industries (miners & banks) rallied, but the 3-year average return remains strong at ~12%.

🔮 What’s Next for 2026:
As we look ahead, the divergence between US and Australian interest rates will be key, with Cybersecurity emerging as the major structural growth theme to watch.

 

Watch the video briefing or read the article below!

 

Your Next Step:
Read on or watch the webinar recording below, and beat the FOMO by getting the facts. If you want to discuss your next move (or non-move!) with pros, you can reach out to your team directly through the personal finance portal.

 

 

The “Liberation Day” Rollercoaster 🎢

If you felt a spike of anxiety looking at the markets earlier this year, you weren’t alone. The defining moment of 2025 was undoubtedly “Liberation Day”—the point where uncertainty over President Trump’s proposed tariffs peaked.

The fear was that these new taxes would crash the global economy. Markets reacted instantly, dropping around 9% as investors braced for the worst.

But here is the important part: The worst didn’t happen.

Almost immediately after the drop, the reality of the policies became clearer (and less severe than feared). The markets didn’t just stabilise – they rocketed back up. In fact, within about a month, the global market had recovered all its losses and was climbing toward new highs.

The “Active” Mistake (And Why Fox & Hare Members Won)

This period taught us a massive lesson about the difference between Active and Passive investing.

When the market dropped, many “Active Managers” (professionals who try to beat the market by trading frequently) panicked. They sold their shares and moved to cash to “protect” themselves.

“After Liberation Day, a lot of active managers went, ‘Oh, okay, the economy is headed for recession… We need to sit in cash.’ Says Tom.

But if you were one of the people who parked your money in cash during that time, within a month, you would have missed a 10% pop. In two months, a 20% pop.”

Those who panicked and withdrew eneded up sitting on the sidelines when the market rebounded. They locked in their losses and missed the recovery.

By simply staying the course and remaining invested, your passive portfolio captured that full recovery and the growth that followed.

 

 

Are we in a Tech Bubble? 🫧

If you look at what drove your portfolio’s growth this year, the answer is pretty clear: US Technology.

The big players (like Nvidia, Microsoft, and Apple) did the heavy lifting. But with stock prices soaring, the big question everyone is asking is: Are we in a bubble?

Tom thinks ‘no’ and he has the data to back it up.

“At the moment, I don’t think there’s an equity market bubble just based on valuations.” He says

A “bubble” happens when stock prices go up just because of hype, with no real money to support them. But in 2025, something different happened. While the share prices of these tech giants went up, their profits (earnings) actually grew even faster.

Tom highlights Nvidia as the poster child of the situation.

“Year on year, Nvidia has grown its profits by around 60%… and its price growth over the year had only been about 40%.

So it actually grew its profits faster than its price return.”

That means, believe it or not, these companies are arguably better value now than they were before the rally started.

 

Ethical Investors Skipped the Fossil Fuel Party 🐨🍃

In 2025, the broadly diversified Ethical Funds slightly underperformed the standard market index.

Why the gap?

In short, the “dirty” end of the market had a massive rally over the last twelve months. The broader Australian market (ASX 200) is heavily weighted towards Mining (like BHP & Rio Tinto) and the Big 4 Banks, and these giants were the biggest drivers of growth in Australia this year, but they are strictly excluded from our ethical portfolios.

“If you’re taking a dark green approach… you exclude them. Your BHPs and Rio Tintos are obviously big resource and mining companies. And each of the Big 4 Banks are the biggest financiers of fossil fuels in Australia.” Tom shares.

So, ethical investors missed the “sugar hit” of the fossil fuel rally.

“Unfortunately this year, a lot of the growth in the Australian market came from companies that… would not be included in an ethical investor’s portfolio.”

The Long Game is the Strong Game.

While ethical funds missed the rally this year, it’s important to zoom out. Ethical investing is about long-term sustainability and Tom is quick to point out that even with a tougher 2025, the long-term data remains strong.

The ethical portfolio has returned a “pretty solid 12.4% p.a.” over the last three years.

 

 

What’s Coming in 2026? 🔮

So, what should you be watching as we head into the new year?

We asked Tom to dust off his crystal ball, and he highlighted two major themes that he believes are about to take centre stage:

The Great Rate Divide
For the last few years, the world has mostly moved in sync. But in 2026, Tom thinks we should expect a split:

🇺🇸 The US is widely expected to cut interest rates to support their economy.

🇦🇺 Australia (The RBA), however, is signalling they might hold or even hike rates slightly to squash sticky inflation.

What does this mean for you?

This divergence creates a tug-of-war with our currency, says Tom “If we see the US rate come down a lot lower than the Australian rate… I’d expect to see the Australian dollar appreciate.”

A stronger Aussie dollar is great for your holiday to Bali, but it can create a slight headwind for your overseas investments (as your US shares are worth a little less when converted back to AUD).

It’s a key trend the team at Betashares will be watching very closely.

The Next Big Theme: Cybersecurity
While AI has been the undisputed champion of 2025, Tom is also predicting significant growth in the industry that keeps it all safe.

“If I had to pick a really strong structural growth thematic that I could put my hat on for the next five or 10 years… It would have to be cybersecurity.” He shares.

“As AI tools become more powerful and scams become more sophisticated, the need to protect digital assets is becoming a non-negotiable for governments, corporations and individuals alike. That looks like a pretty great opportunity to me.”

 

 

The Bottom Line

If 2025 taught us anything, it’s that panic is expensive.

Remember: The media is in the business of selling headlines, not building wealth. Their goal is to get your attention; our goal is to get you results.

By sticking to your strategy, ignoring the headlines, and trusting the long-term plan, you turned a year of volatility into a year of growth.

We’ll leave the final word to Tom:

“Once again, the tried, true and tested method of sticking to the plan is what really, once again, would have helped to grow wealth this year. Remember, tune out the noise, keep calm and carry on.”

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

Last year, Australian shoppers poured $11.8 billion into the holidays.

As a result, millions of them walked into January significantly poorer and/or burdened with holiday debt.

This debt reached a staggering total of $2.7 billion nationwide.  

Making matters even worse, 43% of those debt holders anticipated it would take up to five months to clear their balance, and 15% expected it would take a year or more to pay it off. 

No Fox & Hare member should be falling into this trap. This isn’t just “silly season” spending; it would be money and time diverted away from your future goals – the ones you’re working so hard for!  

So, this year, we are challenging you to max out the celebrations while still banking your wins – with 4 proactive tips from the Fox & Hare advisers that are designed to guarantee financial victory this festive season. 

Let’s go!

 

In short:

The Problem 💰
Last year, Australians racked up a total $2.7 billion in holiday debt. No Fox & Hare member should be walking into the new year with debt from the festive season, especially not at the expense of longstanding goals such as homeownership or passive income.

The Solution 🛡️:
The F&H team – from marketing to financial advice – have laid out a list of proactive strategies you can implement to avoid the most common financial traps this holiday season.

The Outcome ✅:
Choose and implement the strategies that apply to you personally, from the list below, to guarantee you walk into the new year feeling powerful, in control, and on track.

 

Your Next Step:
Read through the four tips below, pick those are most relevant to you and lock with the ‘first actionable step’ provided.  

 

1. Lock Down Your Goals: Treat Your Savings and Investments as a Non-Negotiable Fixed Expense 

One of the biggest mistakes you can make is viewing your long-term wealth building – whether it’s auto-investing, Super contributions, or mortgage top-ups – as a flexible or optional cost that can be paused for the holiday season.  

Your goals must remain your top priority.  

F&H Financial Adviser, Christine Dang, is firm on this non-negotiable approach: “Keep the savings and investment strategies going. Think of them like fixed expenses as opposed to optional costs.” She says.

This sentiment is echoed by Courtenay Walker, Head of Advice at Fox & Hare, who stresses “Christmas is temporary, longer-term goals are forever, and we need to mindful of that fact over the festive season.” 

To treat your savings like rent or a utility bill is to enforce the self-discipline needed for your long-term progress toward your goals. If you reduce the amount that you are saving or investing, it must be the result of a conscious, deliberate choice – not accidental, unplanned or frivolous spending.  

 

Your Actionable First Step: 

If you feel like you’re at risk of overspending at the expense of your goals, you can transfer your investment or saving funds early – before the festive season and its associated spending kick in.  

You can also review your most recent Statement of Advice (SOA), for a refresher on your goal timelines, and make a mental note of how far any missteps might push them out.  

 

 

2. Set a Hard Budget: Cover Every Festive Cost (Not Just Gifts) 

Even the best laid, most stringently observed plans can fail over the festive season.

One of the main causes we see for this situation is that people only account for the main event – the gifts – when planning their festive spending. 

When you don’t view the financial weight of the season as a whole, your funds are likely to be hoovered by the multitude of unplanned extras – decorations, events, new outfits, food and the list goes on.  

F&H Financial Adviser, Julie Bullen, explains that this tunnel vision is where many budgets fail: “Set a budget for the entire Christmas period – and I mean everything. Gifts, food, drinks, travel, events, outfits… it all adds up.”  She says. “Being realistic upfront can help you enjoy the season without a financial hangover that costs you months of progress toward your goals.” 

Winning at the Christmas budget means calculating the total amount you are willing to spend, including the little things and unexpected costs like transport, secret santas or hosting expenses.

To reinforce this message, F&H Head of Advice, Courtenay Walker insists on one non-negotiable: “Identify a budget AND STICK TO IT! DON’T USE CREDIT CARDS!!!!!!!!! ” Plain and simple.

Your Actionable First Step:

Decide on a fixed ‘Festive Season Spend’ budget and, if you feel you might need a little extra help sticking to it, open a dedicated, transfer the funds in and commit to treating this balance as your entire budget for the season, with no top-ups allowed. 

 

3. Implement “Buy-Stop” Friction: Physically Block Impulse Purchases 

Impulse buying is one of the most effective ways to compromise your festive budget and slow your progress toward the big, life-changing goals you came to Fox & Hare to achieve.  

To keep yourself on track, you need to create deliberate friction between the urge to spend and the ability to swipe, scan or click “buy now” 

F&H’s advisers have two tips to actively opt-out of temptation:

Digital Detox:
This strategy is about consciously stepping out of the sales cycle and Julie suggests going straight to the source: “Unsubscribe from all those marketing emails landing in your inbox… The less time you spend being sold to, the more likely you are to stay on track and stress less later” she says. It’s also worth unfollowing any influencers or brands that consistently post paid partnerships or other advertising materials” says Fox & Hare Community & Marketing Lead, Liam Hartley. You are more likely to make a purchase when it comes from a ‘trusted’ source and retailers are cashing in big from influencer marketing.

Grab and Go:
Once you’ve covered the digitial marketing, you need to plan for the physical retailers, too. Father of four and F&H Adviser Callum Newell is giving peak Dad advice: “plan your gifts ahead and free up a single, set time period to go to the shops and buy them! Having a set plan of attack reduces the likelihood you’ll get sucked into buying something extra at the shops or scrolling through Amazon,” he says. 

Introduce these barriers, and any others you can think of, and you’ll minimise your exposure to temptation, making it easier to stick to your pre-approved budget! 

 

Your Actionable First Step:

Spend five to thirty minutes right now and unsubscribe from / unfollow all the marketing emails and influencers you can find. Then, attempt to write an exhaustive list of every gift you need to buy and commit to a single, restricted window (e.g., 3 hours) next week for all necessary holiday shopping.

 

 

4. Master Social Spending: Proactively Manage Gifts and Events 

The festive season is a blast, and you should absolutely have fun! However, the sheer number of invitations and hosting requirements, if not properly managed, could end up being stressful, expensive, and leave you feeling terrible come January.

Nobody wants to walk into the new year broke AND feeling rough. So, why do we? 

Fox & Hare Co-founder and financial adviser, Glen Hare, considers himself somewhat of a social butterfly, but actively applies two core rules to protect his festive budget and energy:

 

Rule #1: Practice JOMO (Joy of Missing Out):
Glen sets clear boundaries on his time and social obligations. “I have started saying ‘no’ much more frequently over the past couple of years. There is so much going on over the Christmas period that if you say yes to everything it won’t only cost an arm and a leg, but it’ll leave you feeling like garbage by the New Year. Limit yourself to what’s truly important and give 100% of your energy to that!”
 

Rule #2: BYO!
Glen controls the per-person cost of catch-ups by choosing intimate, casual and low cost gatherings. His advice for reducing the default expense is simple: “Bring back the BYO bevies and a BBQ. They’re cheap, much more personal than a random restaurant, and who doesn’t love a summer BBQ?”. 

Go out, enjoy yourself, and fill your cup – in every way you can!  

You deserve the fun and connection, but don’t forget to put yourself and your commitment to your goals first. It is more than possible to enjoy yourself without sacrificing your hard-earned money, health, and progress. 

 

Your Actionable First Step:

Decide on your ‘Magic Number’ of parties and events you will attend or host for the season (e.g., maximum five). Set the date range for what you consider the “festive season” and discern away! Say yes to only the most fulfilling events and bring a little peace back to your holidays.

 

 

🥳 Win the Festive Season: Protect Your Progress! 

This year, you are going to beat the holiday crunch and protect your momentum. 

Remember the goal: to have the best time without wasting the time, money and progress you’ve worked so hard for in 2025. 

The cost of a mismanaged festive season is real—it could be a potential delay to your home deposit, hundreds lost to interest on credit card bills, or MONTHS added to the timeline on your next financial goal.  

F&H Co-founder Glen Hare says the trade-offs are measurable and real: “You need to understand how much the overspending will push back your goal i.e. if you spend an extra $1,000 the you might delay that property purchase by one month, $2,000, two months etc…”.

Remember: Planning is power, not punishment. 

You deserve to enjoy the festive season, and committing to a plan guarantees you peace of mind, zero financial regret and the space to enjoy yourself. 

Pick the actionable steps from our four points that are most relevant to you and implement them right now.  

Execute them today and walk into the new year on track and in control! 

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

Can the Home Guarantee Scheme Help you Bypass the 20% Deposit?

For many Australians, the dream of homeownership quickly turns into a scramble to solve one huge problem: how exactly do you save the full 20% deposit when houses are SO expensive!?

The Albanese government think they have come up with the solution: updates to the Home Guarantee Scheme (HGS), that allow eligible buyers to enter the market with as a deposit as low as 5%.

We wanted to know more!

So, we partnered with mortgage broker, first home expert, and host of the First Home Unlocked podcast, Jack Elliott, to break down the policy and help you work out if it’s right for you, our amazing Fox & Hare members.

This guide delivers the comprehensive overview you need to assess your eligibility for the program, understand the policy’s pros and cons and determine the next step on your journey to homeownership.

 

In short:

Lower deposits! 💸:
The Home Guarantee Scheme allows you to buy a home with as little as a 5% deposit while avoiding costly Lenders Mortgage Insurance (LMI).

But only for some ✅:
There are strict rules governing the program, including a property price cap, and you must live in the home (no converting to an investment property while on the scheme).

And best used with caution 💡:
Jack says the HGS should be used as a strategic tool for your long-term goals and vision. Don’t rush into a purchase that might cost you more later.

Watch the video or read the article below!

 

Your Next Step:
Read on, watch the webinar recording and, if you believe you’d like to access the scheme, reach out to your financial adviser through the personal finance portal. If you’d like to speak with Jack, you can reach him here. 

 

 

Crushing the 20% Deposit Barrier: The Home Guarantee Scheme Explained 🏡

For decades, if you couldn’t scrape together a 20% deposit, the bank would charge you a significant fee for a product called Lenders Mortgage Insurance (LMI).

LMI is a mandatory insurance policy, paid for by you, that covers the bank, in case you default on your loan. Again, this fee is added to your loan balance – meaning you pay extra interest on the insurance as well as the property – immediately making your home tens of thousands of dollars more expensive.

The Home Guarantee Scheme (HGS) is designed to solve this problem by having the federal government act as your guarantor for up to 15% of the property’s value.

Jack explains:

“If you’re successful in accessing the program and you go to the lender with a 5% deposit, they will now treat you as if you had a 20% deposit. So again, you avoid paying that lender’s mortgage insurance and you get access to competitive interest rates.”

 

The HGS is NOT a cash grant.

You need to to understand that the HGS is not a cash grant or a lump sum payment from the government towards your deposit. The government is simply stepping in as a guarantor.

This means the government has no ownership or shared ownership in your home. Instead, they are offering their  assurances to the bank that the portion of your loan above 80% (up to 95%) is protected, minimising their risk when helping you get into that first home.

 

The Benefit for You

The benefit for you is twofold:

 💰 You avoid paying LMI because the government’s guarantee removes the need for the bank’s own insurance policy.

📈 You get access to competitive interest rates, a benefit typically reserved for those with a full 20% deposit, because the bank is treating your loan as if you met that 20% threshold.

For eligible applicants, this guarantee provides the leverage to enter the market years earlier than otherwise possible, accelerating the start of their property journey.

 

 

Eligibility Checklist & Rules ✅

The Home Guarantee Scheme (HGS) has been actively helping first home buyers since 2020, with recent updates removing barriers and increasing its reach from the 1st October 2025.

Understanding these criteria is the first step toward accessing the program.

 

You must meet the following criteria to be eligible for the HGS:

• Residency:
  You must be an Australian Citizen or Permanent Resident and over 18 years old.
• Deposit Size:
  You must have a minimum 5% deposit (up to 20%) saved.
• First Home Buyer Status:
  You must be a genuine first home buyer. A key new addition is that you may also be eligible if you haven’t owned a property in the last 10 years.
• Income:
  They have removed the income caps, meaning your current salary level no longer disqualifies you.
• Application Type:
  You can apply solo or with one other person (partner, friend, or family member), but both applicants must meet all eligibility criteria.
• Property Caps:
  The property price must be within the set price caps for your region (these vary by state and territory).

 

Property Rules: The ‘Live-In’ Restriction

The most crucial restriction to understand is that the scheme is designed to help you secure a home to live in.

Jack explains:

“You can’t just convert it into investment property in a year’s time. The programs targeted specifically at first-time buyers who are looking to move in and live in their property.”

If your financial goals involve buying your first property and immediately renting it out (rentvesting), you won’t be able to do so while the HGS guarantee is in place.

You must live in the property as your Principal Place of Residence until your loan-to-value ratio (LVR) drops to 80% or below.

 

How to Get Started: Accessing the Program

The process for accessing the HGS is relatively straightforward:
You can only apply through a participating lender or a mortgage broker.

Jack emphasises the difference between going directly to a single bank versus using a broker:

• Expert Matching:
  A good broker compares all available lenders and loan options under the scheme, matching your specific financial profile (e.g., PAYG versus self-employed) to the bank most likely to approve you.
• Streamlined Process:
  They handle all the eligibility checks, saving you time and preventing emotional attachment to properties that might not meet both the scheme’s and the lender’s individual rules.
• No Cost to You:
  Working with a broker is often free to the customer, as they are paid by the lender.

When navigating a complex program like the HGS, working with an experienced broker gives you 1-1, professional support and a competitive edge on the path to homeownership.

 

Layer Your Government Support

You don’t have to choose just one tool—the HGS can be combined with other government support for maximum impact.

• First Home Super Saver Scheme (FHSSS): You can contribute extra funds into your superannuation to save for your deposit and withdraw it later, benefiting from the concessional tax rate. Crucially, FHSSS funds are counted as genuine savings for the HGS.
• State Concessions: You can also typically use your Stamp Duty Concessions and Exemptions alongside the HGS and FHSSS.

 

 

Avoid the Traps: Strategy, Not Shortcuts💡

The Home Guarantee Scheme can help you buy sooner, but it’s not a decision to rush.

Jack cautions that if you’re not grounded in some sort of goal or value, you risk making a “very costly mistake”. Your job is to make sure you’re using the HGS as a strategic tool, not simply a quick fix. “You just want to make sure you’re 100% clear on why you are purchasing that first home, and focusing on your long-term vision is key” he says.

 

Plan Your Financial Runway (The 5–10 Year Vision)

The biggest financial blunder first-time buyers make is choosing a property that only suits them for a short time. This is why Jack encourages clients to define their ‘financial runway’:

“The longer the runway, the more value or the more growth in equity that you can have… we tend to get our clients to aim for a property that will suit them for the next 5 to 10 years at least.” he says.

 

What should you consider when thinking about your runway?

Jack describes the runway the period the property is functionally and emotionally right for you. It’s the period that the property will suit your life before you intend or need to sell. Things to consider include, but are not limited to:

💸 Costly Consequences:
If you buy a shotgun property, then need to sell it on after a short period of time, the combined costs of buying, selling, and then buying again can wipe out any initial equity gains you made.

👩‍❤️‍👨 The Family Factor: Do you anticipate starting or growing a family in the next 5-10 years, and can this property comfortably accommodate that growth without forcing a premature move?

💼 Career Flexibility: How close is the property to public transport or your place of work? If your career requires a future commute change, will the location still work for you?

🏝️ Lifestyle Non-Negotiables: Will this location still allow you to access the lifestyle you value, whether it’s proximity to restaurants, beaches or being quiet at night?

 

 

Don’t Forget the Hidden Costs 💰

Don’t fall into the trap of assuming a 5% deposit will be the final number you need to buy a home. Jack stresses you must budget for all the other unavoidable upfront costs that need to be covered by settlement. Ignoring these expenses is a common reason initial purchase attempts fall through, as the lender won’t approve the final loan until they are covered.

You need to be thinking about:

• Stamp Duty:
  This is a major, state-dependent cost. If you’re working with a mortgage broker they can assist you to check for local concessions or exemptions.
• Settlement Fees:
  Factor in essential costs like lender fees, conveyancing, and inspections.
• Cash Buffer is Essential:
  Because the HGS maximises your loan-to-value ratio (up to 95%), you have a higher debt and less equity buffer to start with. Jack advises always setting aside a cash buffer for emergencies, as refinancing off the scheme is challenging until your LVR drops to 80%.

This kind of upfront strategic thinking provides a necessary level of clarity, preparedness and helps to minimise risk. Ensuring you are not caught off guard in the event that something pops up or goes wrong.

 

What’s Next? 

You can start by watching the full webinar recording above. If you’re interested in accessing the scheme, you have options: reach out to your preferred lender, contact a participating mortgage broker, or connect directly with our expert, Jack Elliott, for specialised advice. For continued learning, you can also listen to Jack’s First Home Unlocked podcast.

 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you. 

After years of rate hikes, 2025 has seen 3 interest rate cuts. 

Plus one confirmed hold and another projected. For most homeowners, that will translate into lower minimum mortgage repayments and more cash in the bank.   

But with these extra dollars comes a critical question: What should you do with the extra cash?

This article will break down your three main options for turning mortgage relief into future wealth.

In short:

🐨 Australian interest rate cuts may have lowered your minimum mortgage repayments.  

🌱 Read this article to ensure you convert any savings into progress towards your long-term goals. 

🏆 What matters most isn’t that you’re paying less, but what you do with it.

Your Next Step:
Confirm your new minimum repayment, if you have one! Then, choose your champion – the lowest-risk payoff, or the highest potential return. Read on to find out how.

 

The RBA & Interest Rates: Your 30 Second Refresher 

You can skip this section if you’re an interest rate and Reserve Bank of Australia buff. For everyone else, here’s the quick download. 

The Reserve Bank of Australia (RBA) is Australia’s central bank – the bank for the other banks. Its core job is to keep the economy healthy, primarily by managing inflation (keeping it between 2-3%) and ensuring strong employment. 

It does this by setting the cash rate, which is the official interest rate at which banks borrow money from each other. Think of the cash rate as the main lever for the whole financial system: 

• When the RBA cuts the cash rate:
  It costs banks less to borrow, so they typically pass these savings on by lowering rates on things like mortgages. This encourages people to spend and invest. 

• When the RBA raises the cash rate:
  It costs banks more to lend, so they raise rates for customers. This encourages saving over spending and helps ‘cool down’ the economy. 

The interest you pay on your mortgage is simply the fee for borrowing money, and the RBA has a significant, though not absolute, influence over that number. 

 

Start Here: Know Your Numbers 

The first and most critical action you need to take is an easy one: confirm your current mortgage repayments. 

While many major lenders pass on RBA rate cuts, some may only pass on a portion, and others might pass on no savings at all. If you’re going to optimise every dollar at your disposal, you need to know exactly how much you are paying every month. 

Grab your phone and calculator, follow the steps below and work out how much of a windfall you are working with.  

 

🏦 Step 1: Confirm Your Rate (and Your Lender’s) 

Your first job is to establish your current lowest minimum repayment. Why? Because before you can redirect any savings into one of the strategies ahead, you need to confirm exactly how much “free” cash you actually have. 

What to Look For and Where:
Check your email, banking app, or postal mail for official communication. Look closely at your updated statement to see if your interest rate has decreased, or if your lender has changed your monthly minimum. 

If you haven’t seen an update, call your mortgage provider directly. You are confirming their decision on your loan to find your number. This is the precise figure we’ll use to lock in your next move. 

 

💡 Step 2: Work Out Your Windfall 

If your minimum repayment has fallen, congratulations – you have unlocked a monthly windfall! 

Your provider will probably provide you with an overview of your change in payment, however, if they don’t/haven’t, you can work our your windfall by using this easy calculator we prepared with our friends over at Alcove Mortgage Brokers.  

To use it, you’ll need to know:

• Your loan amount
• Loan term
• Current interest rate &
• The interest rate reduction you’re working with

This calculated figure is the newly liberated cash that is now available to put to work. 

 

 

Your Options 

Option 1: Pay down the mortgage 

The safe bet. This is the most direct and lowest-risk approach: simply maintain your old, higher repayment rate. By continuing to pay your mortgage as if the rate cut never happened, you pay down your debt faster, accelerating your journey to being mortgage-free.

Pros ✅ 

• Guaranteed, Risk-Free Return:
  Every dollar you put toward your principal is a dollar you don’t pay in interest. This saving is a guaranteed, non-taxable “return” equivalent to your mortgage rate—a certainty that’s hard to beat in a volatile market. 

• Massive Interest Savings:
  By increasing your repayments, you can shave years off your loan term and save tens of thousands of dollars in interest over the life of the loan. For example, maintaining your old repayment amount on a large loan can save nearly $100,000 in interest and help you become mortgage-free years earlier. 

• Peace of Mind:
  For many, the emotional benefit of owning your home sooner is huge. A smaller mortgage means less financial stress and a feeling of greater security and control. 

Cons ❌ 

• Less Liquidity: Money tied up in your home’s principal is difficult to access quickly, as you can’t sell a spare room 

• Lower Potential Return: You cap your ‘return’ at the interest rate of your mortgage, potentially missing out on higher, long-term market returns.  

 

Option 2: Grow your portfolio 

A calculated bet! Instead of putting extra money into your home, you could redirect it into building other assets. This path is often chosen by those comfortable taking on more risk in pursuit of potentially higher long-term returns. 

Pros ✅ 

• The Opportunity for Higher Returns:
  A diversified investment portfolio (shares, ETFs, superannuation) could, over the long term, potentially generate a higher average return than your mortgage interest rate. 

• Diversification and Liquidity:
  By investing outside of your home, you diversify your wealth and spread your risk, ensuring not all your eggs are in one illiquid basket (you can’t sell a spare bedroom, but you can sell shares). You can also often access these funds more quickly in an emergency. 

• Tax Advantage:
  Directing funds into investments like superannuation offers significant tax advantages and can reduce your taxable income. 

Cons ❌ 

• Market Risk:
  Investment returns are not guaranteed and the value of your assets can fluctuate in the short term.  

• Timeframe to access funds:
  To manage short term fluctuations, you should ideally not intend to access any invested funds for at least 5-7 years.

 

Option 3: Spent it, girl! YESSSSS 💅🏼

The path of least resistance! Simply allow the cash windfall to disappear into your daily consumption. This is the default path many unconsciously follow. 

Pros ✅ 

• Instant Gratification:
  immediate increase in your disposable means more dining out, shopping, or travel. 

• Zero Effort:
  Requires no conscious financial decision, saving you the mental work of putting the money to work (in the short term) 

Cons ❌ 

• Most Costly Long-Term:
  You forgo the power of compounding interest and permanently sacrifice years of potential growth. 

• Erodes Financial Control:
  This passive spending increases your baseline consumption, making it harder to pull back later. 

• Zero Impact on goals:
  The money is spent and disappears with zero impact on your long-term goals.  

 

Seize the Momentum: Your Next Move 

A reduced minimum payment is an opportunity. The key is to capture that cash as early as possible and consciously direct it, rather than letting it leak into your everyday spending and disappear. 

The worst possible outcome in this scenario is to let the extra income just disappear. 

When money arrives unexpectedly – whether it’s an inheritance, a tax refund, or a cut to your mortgage repayment – it is often perceived as “less valuable” than earned income, making it easier to spend mindlessly on splurges and unplanned purchases. 

The good news is…  

You’re not alone! As a Fox & Hare member, you already have a distinct advantage: you have a comprehensive plan in place and a team on hand to help you adjust it. You don’t need to start from scratch. 

Once you’ve worked out whether you do have extra cash to play with, and you have considered the options presented above, just reach out to your Associate via the PFP and let them know what you’re thinking. 

You’ve set goals with your advice team for a reason.  

They know your situation personally and have the technical knowledge to map out the optimal next step, whether that’s increasing your mortgage payments or directing the funds somewhere else.  

We are here to ensure every dollar you earn and save is working tirelessly to bring you closer to your ideal life.  

Don’t let a valuable opportunity pass you by! 

About Fox & Hare:

Fox & Hare are the Millennial and Gen Z advisers, 100% focused on helping Australia’s 20-45 year olds buy property, get invested and achieve financial freedom. 

When it comes to managing your money, it’s normal to feel uncertain or scared of making the wrong decision; it’s normal to feel so overwhelmed that, despite knowing you need to do something, the first step seems impossible; and it’s also incredibly normal to be earning great coin, but still feeling like you’re behind. 

At Fox & Hare we create bespoke, long term financial plans that eliminate these uncertainties and put you in control of your financial future. No more option paralysis. No more fear of missing out. No more uncertainty about how to manage your money effectively.

If you:  

• Want to achieve financial freedom. 

• Want the flexibility to live your life on your terms, not tied to a job or working 24/7. 

• Want your money to be working for you – not the other way around. 

 But the idea of learning how and where to start is more than a little daunting, let Fox & Hare do the legwork for you.