Borrow My Brain - Susie

Look, one of the things I'm often asked is how do I find a property? And during the recent COVID 19 shutdown, I allowed people to borrow my brain. So I wanted to share with you an example of how I took someone through the process of evaluating the suburbs and the areas that they can buy in, and one that's going to give them capital growth and one that's specific to their price range and their needs. So if you watch this video, this example of the borrow my brain, you're going to see how I take someone through that methodology. Now, when I started over 20 years ago, I have to admit it took me 12 months to actually go through all of the analysis and find the areas that I thought would have the capital growth and do the analysis to find out what were the kind of things that made some suburbs grow more than others. Now, fast forward. Having done this for thousands of people and built my own portfolio, now it can take me only a fraction of the time to come up with the suburbs that actually suit people's needs, their price range, where they want to buy in the state that they want to buy. But also the things that has the filters that I know are going to create a low risk investment, such as having a certain percentage of renters and having a certain percentage vacancy rate to make sure there's as many people or more people looking to rent than those having properties on the market. So there's a number of filters that I look at. There's obviously the ripple effect and the opportunity to see what areas are going to go up and value. So I hope you enjoy this. This is something that I obviously offered to assist people with. It's something that I do for my mentoring students day in, day out. I know that it took me 12 months to do this when I first started. I know when people do their own dot map exercise to find the ripple effect and then subsequently go through our suburb selector software and to come up with the suburbs, it takes them around about 15 to 20 hours to do this. I've created a way to assist my mentoring students, but it takes just me minutes. So I've pulled all of that information in so that I can assist people in getting to their resolution of their goal, which is really finding an area to buy the property in that is going to create the future that they want. And that means there's a property that's in demand, that won't have large vacancies, that wants in a growing value, and potentially even have the opportunity to add value. So I hope you like this Video. This is an example of someone borrowing my brain. And the great outcome for Susie and her family is that she found a property and she settled on that property and they now have a home that they're looking to renovate. So without further ado, here is an example of me taking someone through the assessment process so that they can find the property that will allow them to get to their dreams. Okay, so, Suzy, we are finally chatting.

Yes, we are.

And you would like to borrow my brain, I hear.

I would. I would indeed.

So let's have a chat. I want to understand, I know that in the Facebook club, your property success club, over a long period of time, you've been organizing finances and getting ready to purchase. So just give me a summary of is it a home that you're purchasing and is it forever? And let's get all those details out of the way so we can make sure that we can do the right type of assessment for you.

Okay. All right. Well, this has been the battle that I've gone through mentally as well as everything else. We were looking for a property that we could rent out to begin with, but we were looking in our area to begin with after doing our assessment and analysis so that it would be a property we could live in if we should need to. Down the track, which was based on our chat in mid last year. So that has been a bit of an interesting situation because I got it down to four suburbs and I picked one which was in the Gorikin, San Remo, Blue Haven, Fudgeywoi area. Now, the reason I have found it's been an interesting environment because of the COVID 19, we've had to stretch. I narrowed it down to one suburb, but we found there's such a shortage on the market at the moment and there is buyers backing up. So the scenario is you certainly can't go in and negotiate down because the agents have put it on at a reasonable price, a reasonable range. I was talking with Scott, who's negotiating. We have found that the prices are already in a reasonable range if they give you a range or a price. And some of the properties that I've missed have actually gone above what their asking price has been. So we started at Budgie Woy and we just found we couldn't get what we wanted in the price range, in the price points. So we changed out the next because I'm folder here, I've got my little, you know, four suburbs and their percentages, et cetera. So I went to the next one, which was San Remo So I was looking there for a while. Once again we found a property but it was written with termites and a lot of work and there was, you know, poor drainage, et cetera, et cetera. So didn't really feel find the area something based on the fact that it's something we possibly may want to live in as well. I just found a lot of the streets there. They're all. It's set up almost like a square with, you know, parallel streets, et cetera. So they were quite busy, all of them. So I wasn't really feeling that area but still was thinking investment wise it. It sums up, you know, it matches up to the criteria. But I moved away from it for the reasons of not really liking it that much. So there was that scenario then Blue Haven. We had gone out right in the beginning. We've had our pre approval now, three weeks. And in the beginning we just did a look around the whole area, made sure got a feel for it. And Blue Haven was very much on the radar too. And the house I actually looked at last night, it literally sold yesterday. We had sat out the front of that and said, oh yeah, that's a possibility, but it's gone. So that's what we're finding too. The good ones are being snapped up quite quickly and the ones that are on have been sitting there for a while and they don't really, you know, meet what we're looking for. So anyway, what I found is. So I've gone back to the suburb selector and just thought, right, I need to broaden my range and go again and re. Go again and re. Go again. So I found that I thought, well okay, let's just think investment purely forget about living in the future, but still being relatively close in case that ever should happen, that we would need to live in it. So I came up with Wallsend as a possible suburb because it met the criteria of being close to the city University. Lots of uni, you know, didn't have difficulty with rental, which is another thing I do wish to discuss in my journey. But we were finding it hard once again to get the price point because there was no negotiation or the good ones would go very quickly as well. So the agent has told me to. There was a house I really had my heart set on in Wallsend, but we just, we couldn't get price down and there were people willing to pay more than what the price was. So we thought okay. But the agent was leading me to Ellamore Vale, which is. She said that's the good end of Wallsend because Wallsend is a bit of a mixed bag of socio economic situations. You know you've got a bit of riffraff and some's okay and she was steering me more that way but that didn't quite meet the criteria you know because have enough sales etc etc. So that's a bit of a question I have for you. Some of the suburbs that are surrounding they don't meet the sales but you know sometimes they're better pockets So I want to know about that. Because of another suburb I was I haven't had much sleep in the last few weeks but another suburb I'm looking at as a sub suburb of the Thornton area which doesn't meet our price bracket but the surrounding suburbs do. But once again not enough sales and I worry about which the rental market scenario because I've spoken to a couple of agents about this because what I've noticed in my research and I've been using RP data which has been great that a lot of the rentals are sitting there and have sat there for quite a while and that's been a concern to me as well. So I'm trying to pick the right area well that is going to be easier to rent and Wallsend meets that but once again it's a harder area for me to find something suitable. So the other suburb I've looked at is Rutherford which meets all the criteria as far as you know, infrastructure. There are a lot of infrastructure happening for the future and meets all the other criteria but once again I can get more bang for my buck there. But I believe the rental situation concerns me because it tends to sit there longer I believe as well so they're all the considerations and my you know in my journey of what I'm going through at the moment.

So I'm going what's the purchase price that we're looking at?

Okay, purchase price 500 and under it was 485 but I've been able to juggle looking at our finances we I forgot we had a redraw on another account that we can push it up which in the house I really loved in Wallsend I was really trying to do but we. We couldn't get it. So 500 and under preferably high four hundreds is our target.

And tell me this is it to be able to rent straight away or do you want to have capacity to do renovations on it or you know.

I'm feeling at the moment we prefer because if we get in the high 400s we haven't really got any money to Play with, anyway. So I'm thinking something that's more established. That's why I'm tending to think Rutherford now, which is what I was doing, making a few calls before this meeting. You can get something a bit more decent, ready to go and can be spruced up down the track, or probably not a lot of renovations because it's a more modern area, but you certainly could add some value. But I'm looking at more. My strategy is kind of thinking more. Well at the moment because, especially because of the current market, you know, we're probably better off getting something that's a little bit more established as far as not needing a lot of renovations needed because we don't have the money right now for that part of the Trident strategy. And then down the track we could, you know, make it something a bit more valuable. But you have to be able to.

Lease it now, but potential with renovation later.

Yes, yes. Now, there was one that I was talking to Scott about, actually, and Rich and I were looking through last night in Blue Haven because we missed out on another better one. It was just out of our price point. But I looked at it last night too, and I said to Scott, I did look at that, but. And I'm interested in your opinion. It was one that had. And Rich and I ruled it out for the reason of. It had. It was an upstairs downstairs, just a very basic house, I think was clad or weatherboard, but it had two of the bedrooms downstairs. But it had no kit. It had a. Just a bathroom downstairs, but there was an upstairs. But it had outside entry to it. It wasn't. And immediately I thought, well, there's a possibility of dual income there. And Scott actually looked at that himself last night and said, look, if you put a kitchen downstairs, then you've got possible two incomes. Two bedrooms downstairs, two bedrooms upstairs. The kitchen's already in the upstairs. But Rich pointed out that there'd be no laundry because there's. I think the laundry was upstairs too, or down. I can't remember now, but I've revisited that this afternoon. But it's on about the 3:40. 3:30. 3:40 mark. He said if we could pick it up for 4:20. But my concern with that is there'd be a lot of work we'd have to do straight away to actually get it up. And then, I don't know, I'm just a bit nervous about that possibility. I see. And lots of land, so you could put a granny flat there later, too. So potentially three incomes, but we'd have to do A lot of work quickly and whether that would be, you know, the fact that there's two bedrooms downstairs, two separate accommodations in this market with rentals because it's typically three bedroom, you know what I mean? I'm trying to weigh all that up, plus the hassle it would be for us right at this point too, and then maybe difficulty letting it out.

So I don't know, lots of questions it is.

So you can imagine my head, I mean, exploding.

All right, so I'm going to summarise this for me, for you and then we'll have a look at the suburbs because I know I can see what's happening. You've got scope creep. And then you're doubting yourself as well regarding the fact that some of the filters don't work and do work. And then all of a sudden an agent says, what about this suburb? And you're thinking, well, I have to get in now because I've got a pre approval that took so long to get and is now running out. So I can hear the worries. And then you've got this other. Whoa. We could have a whole new strategy. And this strategy could be dual income or three incomes. So let's start with the basics. So if we go back to absolute basics, location masterclass and we start with the beginning and let me share my screen because I think what we can do is just make this a whole lot easier. So what I have for my mentoring students is a digital dot map. So let's just. And this data has just been updated today with the latest SQM data information. So let's just have a little look at the areas that we're looking at. So we know exactly all of these names that you've just thrown out to us in a flurry. So we've got. So the areas that you're talking about, we've got Gorrigan, Budgie Boy. So these guys are. Where are they?

San Remo, Blue Haven and Gorakin are probably the three in that pocket.

So we've got Budgie Boy here, Gorakin and Sanremo. That's here somewhere, probably there. So these are. We've got this little pocket here which we're looking at. And then all of a sudden we've got closer to Newcastle itself. So we've got Wallsend. So here's West Wall's End here, we've got Wallsend here. And then you also mentioned. What else do we have?

Rutherford. Now Rutherford's in the East Maitland area. It's just a little bit further out. Rutherford, east of the areas There was Rutherford, East Maitland and then I've got one other.

Okay, so let's just have a quick little look at Rutherford, where that is. Okay, so we're out. Okay, so it's Rutherford's actually north of Maitland, right?

Yes.

Yeah.

Okay, got it.

Okay. And where else were we looking?

I'm looking at the Thornton area. Now Thornton doesn't meet our price pocket but Mitford, I did a bit of a analysis on that last night. Metford and Beresford and Woodbury are surrounding.

Suburbs but Medford seemed to be Thornton's 500,000 median. Wood 352, Beresford 415.

And Medford is in there somewhere too, a little bit further down.

Rutherford at 480.

Yeah, that's it.

Rutherford at 420. Okay. All right, so if we zoom out on this and you're living around the Gosford area, aren't you?

Yes, in Springfield, near Erinna.

Okay. So we started down here with these areas because I'm not sharing anything secret here but I know that you have a number of children and grandchildren that they're all in the similar area. So the idea was if it was going to be a house in the future for you guys it would be convenient to be in that type of area.

Yeah, yeah.

So this is where we kind of started around that Budgie woy Gorrigon area. Then we moved up to. There's opportunities here in like the western Newcastle area that's in a price point and then we've moved all the way out here to Maitland as well. Okay. So I think the problem is that the opportunity is always to buy the best possible property that you can buy when you can afford it. So if we've got up to $500,000 that we would like to look at and be able to afford, what I would do is let's just check out the suburb selector software and just see where and we might go a little bit over. It's, it's interesting to hear you say that the market is moving so quickly. Good quality properties are coming on the market and they're going quite quickly. So what I'm going to do, I'm just going to look at. Where are we Newcastle here I'm going to put it up a little bit, maybe 500,000 and we're happy to go well below that and we're not gonna actually I'll just make it 5, 10 so we don't lose anything and I'm going to put in a distance here.

100K is what I was putting in.

I think the hundred. Because that'll get us out to Maitland and get us down to the central coast.

Yes.

Okay, so we've got all of these suburbs that are coming up here. So of the ones that Beresford, did.

That come onto our list? Yes, it did, yes.

Okay, we had Beresford and we had Budgie Woy, Blue Haven and we've got Blue Haven, Edgeworth. No, long facing, gorikin.

Metfield. I think you. Yep, yep. Yeah. Rutherford and San Remo. Okay.

And I think Thornton. No, Wallsend.

East. East Maitland was one as well, which is just down from Rutherford, but.

And Wallsend.

And Wallsend. Yes.

Okay, let's just take all of this through. So what we're going to do is we're pulling all the SQM data from last month. So it came through on the 21st of April. So that's all their sale data and we're pulling through the census data. So here's the problem with. First of all, when we talk about putting through some filters, the filters that we're usually talking about are things like we want to have more than 28, 30% renters because we want to have that demand for renters. We want to know it's a rental suburb so that if you're buying an investment property, there's someone to rent it. We're usually looking for the vacancy rate to be less than 3%. Now the problem in Sydney has been that there was all this development of units, et cetera, and we had rental properties of, you know, all these Parramatta units. And the vacancy rates in Sydney went up over 4% that I. But I wasn't seeing that in the central coast and Newcastle. So below 3% means that there's more people looking to rent than those wanting to rent. The good thing about the number of sales data is I just don't want people wasting their time in suburbs. So there might be a suburb that comes onto your list, such as, was it Eleanor Vale, but that has got less than say 60 sales a year. But it's on your kind of watch list. If a sale, if a property did come up, you'd be very interested. But it's a really tightly held area. So it's not one of the top three suburbs that you'd go and look at. So if I was looking at this data here, you know, I. So I've got all this information and then I've got the surrounding suburbs with it as well. I just go straight to the end and not be parochial about this at all and just go straight to well, let's check out the data on the percentage of renters. So this is okay, percentage of renters, 30 sold a year. Now we know COVID 19, the numbers started dwindling. We know that there was low supply in December, January, February. And then all of a sudden we got hit with all these auction worries and concerns. So you know what, what I would think here is that we are, we started to have some of these issues coming through. So, you know, this, this percentage of renters is kind of good. We've got percentage of renters on this one is kind of good. We've got percentage renters here, 69 sales. Percentage renters 35, 69 sales. 34 lots of sales, 35 still 66 sales, 39, 142. And the idea is just, you know, 30% renters, 72 sales, 34%, 88 sales. So we're just trying to run these against each other. So if I looked at this and went 42 sales for Beresford, for instance, there's not really enough there because there's enough other areas for me to consider. But let's just keep it in there for now. So, so that we've got that data coming through for you. So then we've already, we've got these suburbs that we would run up against each other. So we would look at these suburbs and we'd say, you know, what is the data that we have on the suburbs? So, you know, for instance, what we might just do is say, well, why don't we filter? The top line is going to tell us what the typical property is, get us a feel for, you know, who is in that suburb. The second line is going to give me an idea of the median price, how many are sold, and just to see if there's a risk factor of, you know, numbers of units or things. And this is going to give me an idea of vacancy rate and days on the market. So I think we should start on the bottom section first. So let's just have a look at this. And we got vacancy rate here of 1.3, 1.5, 1.5, 0.8 really tightly held, 1.2 0.8, 0.9 vacancy rates per postcode. So if these are close to each other, often what you'll find is they're the same number. Now stock on the market, 45% less than this time last year. So all of these vacancy rates are good. The percentage of renters a good average income, which means that, you know, there's often associated with a higher income. It's a more the tenant, not the tenants. The owners are improving the areas which can put the price up quicker. Public housing. So I then start looking at, well, you know, there's not a lot of public housing here in San Remo, but there is here. But in San Remo, we did only had, I think, few 72 sold a year. So this is kind of starting allowing me to run these off against each other and going, well, if I had to come down to two or three, how would I come down to these ones and find out where I would spend some time? So days on the market, you know, it's definitely shorter. So this is what you're saying, it's harder to get into the market. Quick little look here to see not an oversupply of units or anything that's coming through. We don't have. There's been some good growth that's happened. It's in your price point. So Beresford's kind of like, yeah, it's okay, but there hasn't been that many sales. So this is the problem here that I would say, look, I think I'd almost leave that off the list. Unless you cursory just started watching and seeing and saying, well, you know, potentially this could work for me because a property actually comes up. So. But I wouldn't be actively saying, this is where I'm spending my time. Once again, less properties on the market. Days on the market have come down. Percentage of renters just a little bit low, 59.2, 9.5. And I just look up here, you know, this is kind of close to your price point. So I would park that for now and just go, you know, let's just have a look and see what is possible with the other ones. Because I think that the price point makes this a little bit more difficult. I'd look at this one and I see once again, days on the markets come down quite considerably. There's a lot less stock, however, only 69 sales for the year as well. Not an oversupply of units or anything. So this is all good. This is a bit more in your price range. So I'd keep kind of budgie way in for the moment. East Maitland. Now, when we look at the dot map, one of the things that we love about the pricing pressure is people can't afford Sydney, so they start moving up the freeway. And the first, you know, hit is kind of Central Coast. So we're seeing that having a lot of attention. And that's why you're seeing these sales go quickly. The next is people who have to live in Newcastle or choose to live in Newcastle because they're working in the mines and they don't want to be living out, you know, Singleton for instance, or Curry or Maitland. So, you know, we have a lot of that happening there. But you know, this is a whole industry to itself. So it's almost like we've got two CBDs here. When people can't afford Newcastle, they move out towards Maitland or move down the coast. People can't afford Sydney and they move up the coast. So that's why there's all that pricing pressure that we see in these areas as from a growth point of view. You know, the growth areas associated with Sydney, which is just going to be ongoing growth and you know, with large amount of people live and can't afford is going to be. I would consider Central coast first, then Newcastle and then out here in Maitland. So this has really only got the pricing pressure of Maitland. Now. This is a traditional type of as of two months ago assessment. If I looked at this now and said COVID 19, all of a sudden we've got people who know that now they don't have to work from the office, they can commute once a week or once a month and actually live where they want to live. You might actually see more growth associated with this, these kind of Maitland, Cessna, Kurrikurri, Singleton, Hunter Valley areas. But that hasn't come through yet. That's more like a crystal ball gazing and with the thoughts of this potentially could be a home for you guys because you're renting at the moment, right?

Yes.

Yeah. This potentially could be a home for you guys in the future. These areas here, although all of a sudden they're affordable and people are kind of pushing you in to that area. I still think if you could find something within this area, you'd actually have a better growth opportunity. And even if it isn't your ideal home and isn't the home that you want to retire to, but it is the opportunity to make more money than you would out here in the next five, 10 years that allows you to have that freedom of choice later. Yes, that makes sense.

Yeah, absolutely.

So that's why I would kind of look at this and go, this would be off my list if it wasn't. Unless I was forced to go there by price or something.

Right.

When I start looking at, you know, 465 Gorokin, good number of sales, good number of properties, income's a bit down, public housing is fine. You know, it seems that the Properties, there's a lot less stock. Vacancy is good. But, you know, this here seems to. And this is just a rounding error here. Don't worry about that. This, as I said, the data only just came through a day ago, so I'm in the process of reviewing it. But this here shows us that there's actually been more days on the market. So this would keep me interested in Gorokin. And then we got Metford. The median price here for 80, 66 sold. Once again, smaller suburb, but they're all smaller suburbs there. 69. There hasn't been much change of days in the market, but the stock on the market's declined. There's a huge, really great vacancy rate here, Good income. But I'd be worried about some of this public housing. Just know the area and where you're looking. And if I was looking at Rutherford once again, you know, it's out a bit further. And I just think, you know, there's more properties, hence more sales per year. You know, the vacancy rate's good. There's a high number of renters there, which is not reflected in, you know, a high number of units that you often get. When you get a high number of renters, it might be something you keep on the list. But remember, this is like west of Maitland. So, you know, to me that's like, it's more a home area. And if it's just going to be a property for you in the future, if that is the fall black plant, I think it's a step too far out. Okay, San Remo, we've got some good sale data. Price points, fine. Once again, smaller suburb. We expect that. Not a big public housing. The days in the market increased a bit. You know, still a low stock. You know, this is the problem is that it's going to be finding the properties when they come up. And Wallsend, I think, you know, it's nice to see that, yes, in this price point there could be possible for you to purchase close to Newcastle. It's on the freeway. All of those good things. It's got a good number of sales. So I could possibly keep, you know, Wallsend, San Remo, Medford, Gorokin and Budgiewoy in the list.

Yeah, that's. That's kind of where my preferences have been. But it's finding the properties that's difficult. And also the price, the suburb selector doesn't seem to match up the properties. I'm looking at the price points higher. That's what I've been finding and that's what's been difficult as well. So Wallsend's actually been my preference and then. But originally I was looking at San Remo Budgie Woy. I ruled out because it's a lot dearer than what the suburb selector suggests or the median price. It's changed very quickly. Even though that was our preferred area ourselves personally, we could see ourselves living there but what we saw was not and it was very minimal.

And I think this kind of pricing pressure on the market at the moment, if a good quality property comes up, people who are willing to buy are going to buy it. So you are in a competition with a lot less market on the properties on the market. So in the next three to six months I wouldn't really worry about the number of sold per year because we're going to see reflective of an abnormal market of these suburbs. Let's just say Wallsend, San Marimo, Medford and Budgerwoi. Which would be the one that you go. Yeah, this is the kind of one that I would prefer.

Wallsend is number one choice for me.

Well, let's just do.

Sorry to. I just noticed Blue Haven got left off. Did you scrap that one? Because that's where we're kind of feeling we get more value and more. I don't know. I don't.

Okay, let's have another little look at Bluehaven. 87 sales 497 the only reason I took that off was because it was so close to your priority price point.

So strangely enough, we're finding more value there than we. Yeah. Which is weird.

But would you prefer Blue Haven to Wallsend?

No.

Okay, so let me bring up RP data and I'll show you how I would run this scenario or this. I love it. When I get kicked out in the.

Middle of that happens to me. I'm very familiar with this. I've been living and breathing this for the last few weeks.

It's probably because I've got my son's like yay, school's finished, I'm on the Xbox and my husband's streaming music upstairs while he's painting away. We're all sharing the bandwidth as you know and I just might just check. So Wallsend, we are up in this area just here. So we've got the John Hunter Hospital, we've got the University, we've got the Westfield down here, we've got the Pacific Freeway comes in and it's the main road that goes into Newcastle and the train line I believe goes down this way too.

Yeah, I think Cardiff is the nearest station.

Okay, so let's just see if we can get in here or why it's not working.

So Jane, you would look at the surrounding suburbs like Ellavale, you would look at that potentially, if there was not enough property coming up for your malls end, you would look at that.

I would only go to those surrounding suburbs. So for instance, if I went back to this step and I was looking at the suburbs beside them, I would run them through the same analysis and wonder why they didn't get on the list in the beginning. So it might have been they didn't have that pricing pressure, you know, from the dot map and the ripple effect, which is hard in the central coast because we've got waterfront, we've got lakefront, you know, and we've got access to the city. So it's always hard. But if I was running, if I was looking at say for instance, budgie woy, let's go to Wallsend.

Yeah, it was actually Wallsend. I was thinking with Ellavale being a surrounding suburb, the reason Ellavale, Ellamore Vale, sorry, was knocked out was the lack of sales. But it's actually literally just on the other side of Newcastle Road. So it's actually adjoining. You could almost call it one suburb, but it's not.

And we have the median price here of 556,000.

Yeah. But interestingly enough, more properties that fit what we're looking for was available there. Well, not a lot. It was one or two, one that the agent suggested, which I liked the look of, but it didn't fit the criteria. So I'm thinking, oh, do I don't.

I see the other thing here is that we've got only 24.9 renters.

That's right.

So when we have all of this selection of all the suburbs that you've already got, it's like, would you put one in that doesn't quite meet that.

That's right.

And so it might be if something did come up there, you'd run the analysis rather than trying to fit it in the box, you'd run the analysis and go, okay, let's just say something I can afford comes up this suburb. What is the vacancy rate? What? Because you don't have to worry about number of sales because the property's come up. So what's the vacancy rate? You know, what's the percentage of renters in this area that I'm looking at? What's the percentage of renters? So I would run. Where are we? We're doing Wallsend. So I would check out Wallsend. And get a Little bit more information on it. So we know that the typical Property is a three bedroom house. There's about 1700 properties houses there. Mum dad with kids is the typical type of market. So I'd be looking here at three bedroom houses. There's 5,880 properties in Wallsend. There's 1663 three bedroom houses. So the typical type of property. Property. And this is the thing we've seen in COVID 19. The people who've kind of been following my step by step process for years and purchasing the typical property in typical area. The properties are renting. You know, they're not under undue pressure. They've bought the best property they can in a growth area. It's not an outlier. So there's a lot less frantic people in the your property success Facebook group as you've probably seen then I've seen in other property groups where people like oh my gosh, the tenants can't afford to pay and we're not in a good area because they've got the percentage of renters in the areas. They've already validated that they're in an area within that suburb that the renters want to live. They've got the typical property and renovated often just to a little bit above the average. So it's a property that's more in demand and rents quicker. So we're seeing all these positive things. Okay, so three bedroom houses is what we're after, the sales history. So we just want to check to see, you know, is the median data that we're seeing at the moment, the actual data. So you know, we've had this one sell in March. So a month ago for 523. This little cutie went for 535. This one looks like the other side of the street. Other side went for 525. We've got 530, we've got 500 which is a smaller block. 199 square meters. 4876-006005-85700, 590s. 575. This is one here at 440 big block, which is unusual for that price. 470. So I would say looking in this data, you know, there's quite a significant. There's 87 that we're looking at at the moment that have sold in the last six months. The first 20, I would say that only 10% of them are below 500,000. So I would start thinking how realist is it that I can purchase in this Price range. So that that's what it would start me getting a bit concerned. And now this is, you know, I'm on the second page now and not back on the first page. Second page. Let's just do a quick little check of the last lot, last 30. Because what I want to see is, is it, am I wasting my time? I'm happy to put alerts up in case something does come up. You know, 440, 520, 406, 367. $1. Okay, I'll take it. 485. 400. Okay, so this is some more of these are coming up under 500 selling. January, 480 December, 480 February, 480 January. And it looks like the little weatherboard house is what the typical property is. I would jump over here to SQM research and I would look at their free property data. They've got a new thing with all the auctions coming on as well. So that's a really handy little resource for people haven't seen it. I would be looking at sold records and the reason I'm doing this is I wanted to see what the typical size block is that selling there because at this stage you know we've got quite a large amount of discrepancy. So I'd get into Wallsend. So this is the last 12 months worth of sales and what this is showing me is what size blocks are actually selling. So the majority of blocks.

Yeah.

400 to 800.

Yes. That's exactly what I had.

Is it? Okay, cool. So that's what, that's what I would be putting into my research. My gosh, there's been a lot of sales. Let's just tighten this up a little bit from 400 to 800. We don't want anything over there that's a lot smaller that subdivisions that are selling, you know, 1/6 in the cloud for instance. So we've gone from 80 properties down to 57. So this is all good. Now this is current sales data. Now I'm going to show you what I would be doing next. I would go back to this property tab. I would click on all here. It ticks all of the properties in the area and then I would add them to your watch list. Now anytime one of those properties actually comes up for sale you are going to be able to get an email really quickly to say there's a property on the market at the moment that's between 4 and 800 square meters. Three bedroom house in Wallsend. I would also put my alerts on domain and real estate, so you have no chance of missing. But here's a little secret tab. Now, I've given you access to my RP Data professional account, which means it's for mortgage brokers and real estate agents and then we hack it for us, our investor students. But if you go to this finance tab and just pretend you're a mortgage broker, and I've had clients do this when they're getting to the end of their pre approval and they're worried that they're not going to be able to get another pre approval for whatever reason. And remember, they do validate your information every time. It's just that that's their concern. So I've jumped over to the finance tab. And then this is weird little thing down here that says finance cycle. Now this is for mortgage brokers to get in here and say, hey, how can I find all the people who owned their property for a long period of time or own their property as a company or whatever, or have high equity? So this here says to me, here's people that have owned their property between high equity between six and a half and eight years. So the value has gone up quite a bit. They might be ready to sell it or even people who've owned the property over 20 years. So that reverse mortgage definition there. So you could possibly get in here into the reverse mortgage. They're just saying these people have owned their property for over 20 years. Now, this is like a real focus and you can get in here and say, out of all of those properties, there's 118 properties that have been owned by people for more than 20 years. Now, if you think most people buy a property between in their 30s and 40s, we're now talking about the fact that these people are 50 to 60 and they're 60 to 70, and they might be looking at getting rid of the property or the prop. They might have moved into some facility. And this is now being rented out by the family. And the family is thinking, you know, what can we do with this property? So this kind of like gives us an indication of, well, there's actually some properties here that potentially you might say, you know, this is something that I would actually, you know, really like to own. So you might go into the property itself and you might find out some information on it. Now, if it hasn't been sold for 20 years, it's unlikely you're going to have many video pictures here. You can jump in here onto the street view and have a look around and see, you know, how typical it is? Is it in a busy area? What's going on opposite it? You know, there's some improvements here that are happening. You can have a quicker look and just get a quick little look of where this sits with respect to all the other things, you know, shopping centres and stuff in the area. But what could be the possible absolute gem here is the fact that we've got in, depending on the state, you possibly have the ownership written here as the same address. So we know the people who are living there are the people who own it. You can see here that they've had some building developments done, so they've actually improved, Improved the properties over the years and done a few little alterations and things and it's not been listed for rent. Now the absolute, like, amazing opportunity that could come up is a property that is listed for rent and is still being listed for rent and hasn't been sold and has been owned for 20 years. So there's an opportunity then to speak to the agent and say, look, I noticed that there's a property here that you're renting out at the moment, actually looking to move to the area. This really fits the bill of the typical type of property I'm after. I'm wondering if we, you know, I could approach. You would approach the owners to see if there's something they'd be interested in, see how you can use that a little bit.

Sure, yeah.

And then you could do the same thing here with this. You know, these people have high equity in their properties, but it gives you the opportunity to kind of run through if you're doing all this research anyhow, and this is where you want to be. It's almost like you could do a door drop, going, hey, I'm looking and moving in the area and I've noticed that your property, you know, I love your property and it looks very much like I want to do photocopy, like 40 of them. Here's my email and my phone number. Give me a call if you're interested. And I have had students pick up properties this way.

Wow.

And you're targeted, right? You're not waiting for it to come on the market and the number of people have said. I was actually thinking about listing it next week or next month and I wasn't sure, but then I got your. Your message and I was like, oh, may as well have a chat. And you get like, you know, valuation done and all of those kind of things, so they're not being ripped off. But this high equity is essentially, basically, it's choose. This is choosing between. They've owned it for six and a half to eight years, so they've had a really nice run of growth. It might just be the fact that now it's time for them to move on. You know, they may not want the property. And it's. If you've got people, especially in this situation, you know, it's about a win win. You've got people who have a property that is this typical type of property and it's on the market at the moment to rent or there's evidence to see that it has been rented in the past. It might just be. Well, look, you know, someone's interested in buying our property. We don't know what's going to happen. We've had it for eight years. You know, people are usually in their 40s, you know, when they're buying an investment property, so, you know, they might be now in their 50s and they're going, okay, well, I kind of got an offer on that and I've just lost some hours in my job or whatever. You know, maybe this is something that I would be interested in pursuing.

Right.

So this is a workaround that's a.

Really good tip for most in the position where they've got a bit of time up their sleeve. We've got a week.

Yeah. And so this is the thing you say you want to be notified of properties coming on the market. I would also jump into here and have a look at this market compare because this is properties. It just gives you an indication of properties that have been listed as well and what the price guide is, how long they've been on the market. So this tells me that this one's been on the market for 91 days and it's got a guide around 450. You know, sometimes, you know, we've got. It's been on that market for 44 days. There's a guide of 490 here. It's under contract for between 460 and 490. So it's actually 6% lower. So I'm getting an idea too that although there's some here that have actually, you're seeing on the ground, properties are selling quickly, there's actually some indication now that, you know, they put this on the market 30 days ago for between 629 and 649. They're now looking to sell it. So they're dropping the price by 6% here. These guys have dropped it by 12%. So this is giving you an idea too about. You might just be Able to find some areas, some properties here that are a little bit more hungry to sell than others. So with some time, maybe the strategy about that. Finance tip. But, you know, these are going to show you properties that are on the market at the moment and have been on the market for a bit. And I know that you've said the really good ones come up and go quickly, that's fine. We've got the alert set up. The day the property comes in the market, you're going to get an email. But this is the extra work that you could be doing.

Sure. Can I ask you a question with that? The ones that are sitting on the market a little bit longer, they're busier roads. Do you consider that's something I'm interested. Is it worth. I mean, I've noticed in all the areas they sit longer if they're on a busier road. So is it something that you consider?

Absolutely. And I think, you know, this, the, the fact that it's a buyer objection, it's sat there for a while and people don't want to buy it is a consideration for you to go, well, when I want to sell my property, what are they going to think? It's on a busy road. Now, in some instances, renters don't mind a busy road if it's, you know, next to the bus stop or, you know, next to all the conveniences that they're after. But you're buying this property for growth to make 100, $200,000 in the next five, 10 years. You know, so extra money with the money that you have. So my consideration would be, well, what's the risk here? The risk is when I come to sell it, I'm not going to get the money and it's innocent on the market and worry me. The renters just help you pay the difference between pay the mortgage and you make up that difference whilst they're helping you keep the property until it gets to the growth period. Now, unless you have the capacity to have 100 of those making you 50 bucks a week and with good cash flow and have the nerves of steel to put up with that many renters, it's not really worth your time. So I think going through the opportunity of looking at this and going, it's set on the market for this long, there's a reason for it. I'm not going to be the fool that rushes in.

Yeah. And that's what I've been doing. But then I was just wondering, am I being too fussy? I don't even look at it when.

I say I don't think so because if it sat there for that long and there potentially is possible and you can look at this data, you know, you look at that tab, that market compare tab and go, well these people are unrealistic on their price potentially or they could generally be a problem. It could have termite or have, you know, a lot of work to be done. And just to address your question around the, you know, the granny flat multi res it's a nice to have when you have the capacity for that to be your strategy and the time to find a property, the fact that one is kind of fallen in your lap. I'd be talking to the council because some councils don't allow granny flats and some councils don't allow the secondary, you know, property or you have to have, you know, like in Brisbane, the legal heights between the top and the bottom so you can rent the one out below. So before I commit to doing something like that, it's nice to go, oh, you can have a secondary income. Council is going to weigh in on that conversation heavily and if it hasn't happened in that area and I would have a look at the rental properties in that area and just see if anyone's saying do you want to rent out the bottom of the house or do you want to rent out the back? Because I think unless it's kind of typical and accepted, it gives you an indication that council is not going to let you do it.

Yeah, yeah, no, I agree. I know the granny flat is okay in that area. Over 450 squares you're allowed to have it. And this is a huge block on this particular property. But I just, I haven't done mine, you know, my evaluation of whether you get two for one back if we did that. But I just see right now at this current climate I just feel would be a lot of work and a lot of money out with the risk of not being able to rent it out, you know, as you say, because it's not typical. So I know that area is. They're crying out for rentals. So I know that. So that's a good thing. But yeah, I'm just not sure.

So the clarity of, you know, why are you doing this? You're doing it for growth. Why did you look in the central coast area? Because you understand that there's the flow on effect of the growth coming from Sydney and affordability. It's convenient for you if you did want to live there in the future. What is the next best? The next best is Wallsend surrounded by the university and the hospital and on the train line basically and on the freeway into town. So all of those good aspects as well. Maitland and further out, I know it's cheaper but I just don't think you're going to get the growth potential. There's a risk, but there's also an opportunity with that risk which might be everyone goes I want to live in the country and further out and have a bigger block. But I don't think you need to take that risk on especially because you've got only a couple of weeks to find this. So put the alerts in place on those suburbs we discussed. Know that you've got this. You've done all the analysis. You understand. Exactly. Don't worry so much about the filters around the number of sales because that's going to be a critical criteria that goes out the window very soon anyhow and we have had a reduction. But be aware that if you were going to go for like a couple of suburbs that had reduced number of sales, you probably need more suburbs on your watch list because they're only. They're not going to come up that often and you've only got a small period of time where your pre approvals in place and you know. But I hope that I've given you a bit more clarity about all of these.

You have. Yeah, you definitely have. You've helped me sort of stay more focused on the areas that would be better for us which is closer to home as well as walls and whatever. If something comes up, it comes up. If it doesn't, I'm not going to rush. I'm just going to have to take that risk. So that's kind of where I'm at. So that's. It has been very helpful. I really appreciate it, Jane.

Oh, good. I'm so glad.

You're wonderful as always.

There you go. Borrow my brain. This is all, all these wonderful things that can happen.

Absolutely. Thank you, Jane. I really appreciate it. Okay.

Let me know how you go.

I will. Thank you very much. Bye.