Episode 9 of The First Home Buyers Show - Where you can afford to buy

Do you think I've only got this much money? What am I going to do with it? Well, in this episode of the first Home Buyer show, not only will I show you how to identify suburbs, I'm going to share with you some of the suburbs that have come up for me this month that I'd be looking into if I was a first home buyer. But without further ado, let's head on over to the credits.

It's the first Home Buyers show where first home buyers go to watch their wealth grow. And here's your host, Jane Slack Smith.

Well, how exciting is this? We get to discuss where to buy now, when we think of the framework, we think of sources when we think about where to buy. And there are so many things to consider. But I'm going to share with you today some of my tips and tricks and some of my secret software so you can see how I analyze suburbs. And we have had many people this week share with us some of the suburbs that they would like me to review. So let's just check out some of those. So if you are over on the first House Buyer page, this is the first home, first investment page on we have posted a question. Where would you like us to look at? And we've had so many people come back. We've had Marg looking at Coburg, got Mildura, Leyla Park, Mossvale, Barnsdale, Upper Mount Gravatt, Primrose Sands and Orange. Now, obviously I can't go through all of these, but I am going to select a few so that we can review those and I can show you exactly how you can do that. So I'm going to show you some free, free software and programs that you can grab this information from. I'm going to show you the software that I've developed that brings it all together quite quickly so you can see how quick this process can be so you don't need to give up. And then at the end, I'm actually going to share with you some of the suburbs that have come up on my analysis this month. Now, out of that list that was shared on that first House Buyer page, there is actually two of those suburbs that have come up on my list this month. Now what I'd also like to show with you here is if you are actually applying for the first home loan deposit scheme, then the government has put out that there is a number of purchase property caps. So the price of the property you're purchasing, they have put some caps on those. So it's really important to understand what they are now, if you would like to have a copy of of my first home loan ebook for Australian grants and concessions and it covers all of these caps, please head over to www.firsthousebuyer.com. all of the First Homebuyer show episodes are there. Our lending eligibility assessment is also there. Quick quiz takes you two minutes or less to find out whether you're eligible. Also the link to the first Home Loan Deposit scheme eligibility test as well. So you need to be eligible for lending and you need to be eligible for the scheme so that you can actually apply. Now, this scheme is going to come out every financial year. January 2020 was the first, July 2020 will be the next 10,000 people will be the recipients and they do need to comply with a few things and purchase price is one of those. So what I've done today is I'm actually going to share with you by the end of this show some of the suburbs that have come up under my assessment. Now, I have looked between $375,000 and $700,000. I have applied some of the tough filters that I apply to any of the suburbs that I'm assessing so that you can see exactly the suburbs that are coming up. Now, just a heads up, 35 came up for me out of the 8,000 that I assessed. So I'm going to be sharing with you some of those. Now, without further ado, let's get into some of these suburbs so that we can actually have a look at what is actually coming up. So I'm going to jump over now to a couple of the websites that I love to use to learn a little bit more about some of these suburbs. Now, one of the first suburbs that did come up and mark very thank you very much for asking for it. And as you are, number one, I am going to assess your suburb and that suburb is Coburg. Now, one of the things about Coburg is that Coburg is actually way outside that $700,000 price point. Even for Sydney. In Melbourne, it is only $600,000. So you are actually not going to be able to get the first home loan deposit scheme. You, you might be able to actually get some of the Snapchat concessions. You will be able to get lending, you'd be able to get lending potentially with a 5% deposit. You're just going to have to pay the mortgage insurance. But Coburg is a great suburb that has come up for me time and time again. So I'm going to show you how I would assess it because I know a lot of people are watching this, maybe investors, maybe people who are looking for the next home and want to be able to assess how to buy and where to buy when they're looking at the suburbs. So let's just jump straight into that and have a look. All right, so I'm now in domain.comau I want to give you some free areas where you can go and get some of this information. So if we go in and have a look at Coburg in this suburb, what's going to come up is the areas to buy. Now, we don't necessarily want to have a look at the areas that the properties that are on the market at the moment. We actually want to be able to find out a little bit more about the suburb. So you go over here to the research tab and suburb profiles. Now the frustrating thing about all of the websites is that every time I record one of these they seem to go and change where to find it. So I'm always looking for the suburb profile. Sometimes it's hidden on the bottom of the page, sometimes it's hidden underneath the number of these tabs. But this is what you're after. Now what I love about the profile profiles that are given to us about these suburbs is that we can jump in here really quickly and we can get a feeling for some of the filters that I look for. Now I look for around 30% renters. We know that 70% of properties are owned by owner occupiers, 30% by renters. If that's the case, I'm happy to go down to maybe 28% renters, but I'm definitely looking over 28% to see see what the renters look like. I also want to get a bit of a feel for the suburb. Now this tells me that two bedroom houses go for 690, three bedroom houses go for 890, four bedroom houses go for over a million. And the clearance rate has given me an indication, you know, how fast these are selling, how many days they're on the market, how many have sold this year. Now this is where I have another low risk filter. One of the numbers here is how many sold this year. Now I'm trying to work out what is the typical type of property because as you know from our previous episodes, the typical type of property is really what we want to buy because we're going to turn it into a rental property. It's what most people want to rent so we have less vacancy rates. But if we're going to turn it into a property that we need to sell in the future as well. We want to make sure that people want to buy it. Now this is giving me an indication that maybe a three bedroom house is the most typical property. And I'm also looking for more than about 60 sold per year. So 32 sold per year. This means that there's one or two properties coming on the market every month. If this is the typical property and there was only 30 sold per year, I definitely wouldn't want to be looking at this. But I'm still a little bit confused here about how many are being sold. Now I do love this. It gives us some catchment zones so we can work out what schools are in the catchment. But we also want to be able to go in and have a look at those schools later and see how they rank as well we've got houses for sale so, so once again we've got a little bit of information under this research tab. So what we've gleaned here is what the renter is, percentage of renters are and we've got a little bit of an indication here that we think a three bedroom house is the most typical property. And the median house price is 895, well over our cap of 600 for Victoria. Now if I come in here I also want to find this information so you know it's really kind of, once again it's difficult in working out where you can get this. So I'm looking about how to research a suburbs and here it's popped up. So let's have a look at the suburb that we're after. Once again we're after Coburg. So let's jump in here. Now what's it tell me? Tells me a little bit about the lifestyle. I like that. It tells me at the moment there's 106 properties available for rent and 67 for sale. Now we don't know if they're typical or not. It tells me here that the median house price is 890. So I'm getting a feeling based on the other information I have that the three bedroom's most typical. Now if you have a look here, the three bedroom is 910 and we've got the four bedroom at 1035. We did a quick comparison, we would see a three bedroom here is 890 and 1098. So you're never actually looking at the same information. It all comes from different data sources. So when you getting your information together, please, what you have to do is make sure that you note down what site you've got it from and if possible find on that site where the information is coming from might be Australian property monitors, might be CoreLogic RP Data. And you know, once you've recorded that information, you know what you're comparing like with like in month in, month out. Okay, so let's see what else we have. Now I like this because it tells me that, that there's a high demand in the area. Now this is based on the number of searches that are going on. So about thousand visits per property and compared to the rest of Victoria they're only around 880. So this tells me that there's a lot more people looking in Coburg than the average Victorian properties. So we've got some listings here again and here we have some demographics. Love this. I get a feeling for you know what people mostly it's established couples with families are the most common people who live there. So less than 10 k's from the city gives me a nice idea. It's what the people look like in Coburg. Nice multicultural atmosphere, some lovely iconic buildings, some food. What's the typical house look like? And this is really handy, the Victorian bungalow because when I'm looking at what the typical property is, I want to get a feel for what that would look like. So we can also see here that some townhouses are popping up and some units, people on bikes. And so this is really cool information. I haven't really gleaned what the typical property is. So if I was going to do that I would jump over to census. Why not go to the source if you're after this type of information? I'm in census data. I once again see there's 26,000 people living in the area. I get a feeling for the demographics. So I've got a feeling that the average age here is 35, which is good. Look here, 25 to 29 year olds, 10 compared to 7% to the states. So I can see that there's a younger demographic than the most of the states. I can work out all this other information, people's background, where they work, country of origin, full time work, et cetera. But what I'm really interested in, in buying a property that has growth potential is getting the typical property and if I want to turn it into a rental property in the future, making sure I'm protecting my by having the right percentage of renters. So I can see here 64% of all the properties is separate house. So I definitely know a house is the most typical property. We don't have an oversupply compared to the number of houses and townhouses in the area of units, which is another good thing. And we can see here that 43% of the properties are three bedroom houses. So a three bedroom house is definitely the most common type of property. And I can see here 34% of the properties there are rented. So I've quickly been able to use some of the free data to find out more about this suburb. I know the median price, I know the typical properties, a three bedroom house, I know that it's got the right number of renters there and I know there's enough sales there for me to be of interest. So what else would I want to know as an investor? Well, as an investor I would also want to look at information like vacancy rates. So let's check out SQM research, which is where all the properties data and all the magazines such as your investment property magazine gets their data. So most of this data is right in the back. If you're like me and your eyesight is going, this makes it very, very difficult to read. But for information on vacancy rates, which means we're looking at what the, I guess the number of people who are actually renting in the area. So if we go over here to vacancy rates and we put in Coburg. Now just be careful here when you're doing this because it is actually done by postcode. So you might actually have the same number of similar suburbs. Same suburbs, different suburbs, but in the same postcode. So let's have a look at this. So we've got vacancy rate of 1.2. Now it is generally accepted that if the vacancy rate is around 3% that there is as many people looking to rent as there are rental properties on the market. So the vacancy rate is 1.2%. This means that the people who are looking to rent are going to have to be very quick on their toes because there's not that many properties out there. So this is really good. Now if we came up with a vacancy rate over 3% and that means that there's more properties on the market than there are actual people looking, that would be a reason for me to step back and not look at that suburb. So as you can see, we have look at Coburg now we have some really good information about this. I still don't know what the 10 year capital growth has been. I don't know some of the other details about the area, but I have found out enough with free software. Now what I'm going to do is I'm going to jump to one of the other suburbs that was selected and I'm going to jump over to let me choose one Vu, who has asked about Lalor park in Sydney. Now Vu, this is one that has actually come up on my short list so I'm going to include that on my shortlist for this month. So, so let me take you and have a look at how we will actually look and assess Leila park using the software that I've created, which is the suburb selector software. So this is under my location masterclass. You know, I've taken a long time in actually bringing this together because I got sick of going to all the different websites and trying to find the information, to be honest. So let's just put in Sydney, we're going to put a huge purchase price and 1.3 million, I'm happy to go 90% below that. So we're talking around about $200,000. Happy to go a bit above that. 45k's out and this is where you would put your criteria in. So if you were looking for a, you know, property under $700,000, then you put $700,000 in here. So once we run this, what comes up is all of the suburbs that are actually within that price range and within the distance that we listed down. Now you might want to find out, you know, where actual LA park is, you may not know where it is. And so you could go through here and you can click on the map and check it out. Here it is, it's down near Blacktown in Sydney. So it's around about 35Ks out. We jump back over here into the software. You can see the median price here is $650,000 which is under the $700,000 cap that the first home loan deposit scheme has put down for Sydney. Now this is where I get to pull up some information and learn a little bit about this suburb. Now I'm always looking for pricing pressure, so I'm looking for suburbs that are closer to the cbd, so closer to Sydney that are actually putting price of pricing pressure on this suburb so that it will actually go up in value. So when people can't afford, for instance Winston Hills or Turngabby and they look to the next suburb and the next suburb is Layla park. And when they can afford this, we start seeing more demand and prices going up. So I'm looking for suburbs that are closer Seven Hills and look at this, the price is higher and we'll see here the 10 year growth is higher too. So this satisfies my filter on the pricing pressure. Let's check out a bit more percentage of renters 41% fantastic. It's over that 30, 28% I mentioned. Have a look at this number sold per year 79. Fantastic. I'm going to cheat over here and check out the yield over 3%. Great. So and stock in the market. Now this is a big problem that's been experienced at the moment and in a fast moving market often is and that is there's less than 50% stock on the market than there was 12 months ago. Now I purchase all this data from SQM research every single month so I'm always looking for the most up to date data. Now one of the things that does concern me here is the percentage of public housing. So when I'll be doing my suburb analysis I just note down check out where the public housing is so I could potentially stay away from there if I'm purchasing a property. Now I've pulled all this data in from census as well because I want to have all the information in one place. I can see the couples with children are the most prominent prevalent demographic that I'll be possibly selling or renting to in the future. I can see three bedroom house is the typical property. Train's the most common mode of transport. The number of houses is great. I've got here number of sold per year. Now this is where I've got the median house price the one year growth. So it's dropped a little bit but held well compared to some of the significant drops in Sydney three year growth. So over the last three years probably lost 1.4% year on year five year growth. But here we are 10 year growth. So over the last 10 years on average every year of the last 10 years it has gone up 5.9%. So this gives me an indication between year five and 10 there was probably a lot of growth Jumping over here once again public housing. Just want to check to see average weekly income. Really happy to see anything over $800 percentage renters over 28, 30% fantastic days on the market in the last quarter quarter and compared to the last year hasn't changed much. Definitely the stock has and the vacancy rate is below 3% so I'm happy. So as you can see, you know you could go and have a look at a number of different websites and try to pull up this information. I get a little bit lazy and hence why I use the suburb selector software. So vu if I was looking at Lalor Park I'd be really happy in continuing this search because I definitely have some of the filters on pricing pressure and I definitely have some of the indicators for my risk assessment to be less than 2.4%. I'd want to make sure that I check out the public housing. I think this is a really solid suburb that you could consider and just be aware of what your main demographic is. Mum, dad, with the kids, what the typical type of property is as well. Now I'm going to jump in and choose one more suburb and I'm going to go a little bit deeper on this one as well. So we've done Coburg. Thanks Mark. We've done Lelo Park. Let's head north to Upper Mount Gravat Bow, let's check out your suburb. So once again I would head back to the suburb selector software because let's just do this quickly and smash it out and let's head to Brisbane. 1.3 million does seem a little excessive but hey why don't we leave it there because I'm sure that Upper Mount Cravat will come up and let's head down to the use and here we have it. Upper Mount Cravat median house price 552 500. Now as a really quick little check I want to just see how does that fit in to my selection for Queensland price cap of 475. So Vu, if you are looking to be purchasing and get access to the first home loan deposit scheme, this is actually going to be outside of that as well. Never fear, we are going to assess the suburb and just like lay Lower park it does actually appear on my list of 35 suburbs in Australia that I would look at within that property price range and with all of my filters applied for this month so well worth consideration. Even if you can't qualify for the first time loan deposit scheme and you have a 5% deposit, lenders are definitely open to taking your money and giving you approval. Now once again as I mentioned before, if you head over to the first house buyer page I have an lender eligibility check that you can do there. It's a two minute quiz. It allows us to assess whether you might be eligible for the hurt first home loan deposit scheme from a lender's point of view. And this is also for those who don't necessarily want to use the first home loan deposit scheme. They might have a 10, 15, 20% deposit or a gift from the parents or they want to act really quick and get in now or they want to buy over the median purchase price such as this property here that we've just had a look at For Beau so or this suburb. So let's jump over and have a look at Upper Mount Cravat. So once again I'm going to use the suburb selector software so I can jump into this really quickly. Upper Mount Cravat we have a median price of 550200010 year growth. This is not uncommon for Brisbane. 2.7% rental yield always better in Brisbane. 4% like this, 39.6% renters. That ticks the box. No real issues about public housing. Days in the market have started to drop a little bit which indicates a bit of demand. 70 sold per year. Loving that as well. So let's check out Upper Mount Gravatt. Okay, so what is the typical type of property? Because I don't want to be caught out with a property that people don't want. It's a three bedroom house. I'm looking at a couple without children being the most typical type of demographic but you know, closely followed by the couple with children. So you know, that gives me an indication that schools may not be as important but still pretty up there. Bus is the typical type of transport. It's 11ks from the CBD. Wouldn't it be nice to be buying a $552,000 property in Sydney or Melbourne owning 11ks away? We have lots of houses which is good to see. The sales price is right. They did have a big drop in the last year and they have had a bit of growth in, you know, that five year period but nothing really outstanding. But to be honest this is kind of typical of Brisbane. Public housing, not a problem. Great weekly wage, great percentage of rent. As we've already looked at this, stock on the market has dropped. So you know, this indicates that there's less on the market and that the properties are on the market for less time which indicates that you're going to have to be competitive to jump in there and have a look. Vacancy rates less than 3%. Love this and really nice rental yield. So let's Upper Mount Cravat now there's some more information that we can go into and have a look at. And this is RP Data Professional. Now I've shared with you previously. You know as a mortgage broker I have Investors choice mortgages. You know, when we believe so fully in giving research and information to our clients, especially our pre approved clients, I actually cover this cost of the $150 a month for you to get access to RP data if you become a client of ours because this is essential for you to be able to to create the information that you need to know as someone who's in the market. So I'm going to show you how I use this, but upper Mount Prefect. Okay, so I'm now in RP Data CoreLogic. As I said, it's usually $150 per month. Well worth it. I'm going to head over here to suburb report. Logged myself out. Love it when that happens. And now I have a significant area. So let me just grab jump into this again, copy data. And whilst I'm logging in to this, we are, as I said, we are going to be looking at Upper Mount Gravat. And the information that we're pulling out in this type of analysis allows us to go just a little bit deeper. So I'm going to generate this suburb report, an Upper Mount reverse. And the reason I love this suburb report is it allows me to grab a lot of the information. Now, as some of you may know, I love renovation. And for me to be able to do a renovation and create a lot of value allows me to look at ways that I can actually time and time again get the information that is needed for me to do the analysis on whether a suburb has the potential to be worthy of a renovation. So let's just check out this report. This is the Upper Mount Gravatt report, the suburb profile on it. And once again, you know, we've got some really good information here. A bit about the population. I can see the major roads. It tells me how many people live there, average mortgage, the average age. There's some nice census data, the amount of properties, total current properties on the market. Now this once again gives me a different median value. So just always make sure that you're checking out where you're getting your data from shows me that the median house price has come down quite significantly over the last five years. Now this is what I'm looking at. So if I say that I scale from 0 to 100, I place all of those 2,724 houses I'm trying to look at here. If what is the median house price? So 607. What is the lower quartile? So the bottom 25% is 553 and the upper quartile is 720. Now typically if I was going to be buying a property, I would be, let's get a nice little basic calculator here. I'd be looking at this 600,000 median and I'd say an average cosmetic renovation is going to cost me $60,000, but I want to make $2 back for every dollar. So I'm at another 60. 720 means there's capacity to add value with a renovation, cosmetic renovation, using 10% of the value of the property to actually make $2 for every $1. So this is happy days and this is why I love this report. It just quickly allows me to work out what the capacity is for us to make to add value through renovation. So let's just jump further and I want to show you a few other things that I can work out about Upper Mount Robot. So this is some of the other things that I would do with RP data so that I can get down now that I have the suburb into being able to identify the properties that I want to buy. Now I know that there's a lot of properties there but but I'm actually only interested in three bedroom houses. So let's just refine this down to three bedroom houses and as you can see here, there's 1148. Now what I would do right now is I'd hit all, I'd head over here to say add to my watch list and as soon as those properties come on the market I'll be sending an email so that I could be the first in line to check it out and see if it's something that I consider. Now this sales history allows me to jump over here and have a look at at the properties that have actually sold recently so I can get a feel for what really is the price in the last six months. And I can set that six month price list here so I can see what, you know, the 600 median house price is going to allow me to buy. But I can also check out what the typical type of property looks like. Is it a brick? Does it have a pool? What are the things that I need to consider here that allow me to do a full assessment and I can jump over here and have a look at on the market as well. So I've got nine properties that are three bedroom houses on the market right at the moment, which I love. And I also have the ability, if I wanted to, to be able to generate for myself my own valuation report that would allow me to work out what this prior property should actually be valued at. Now this is really quite exciting because the data that is used here is the data that the lenders also use. So I'm actually getting a head up of what that median price is and what the range is. I've got some sale data about when it's sold in the past and for how much and I've got some information about the location and I can go and have a look at comparable sales so you can see how powerful this is. And if I was actually very interested in this property, I felt it was the typical type of property property and it was something that was definitely within the price range I wanted to achieve. I can even jump over here, I can check out the map, I can go over and check out the recent sold properties in the area to see what else is selling over here. And so I can get an idea of maybe what the renovated and unrenovated properties look like and the standard of the renovations that they're doing. If that was one of my strategies, I can just see what, what else is selling in the area. I can also jump into a street view and check it out, make sure it's a typical type of property for the area and it's not something that's covered with great big developments or anything else going on beside it. So there you have it. What we've done is we've had a look really, really quickly at three of the suburbs that have been put forward by our first house buyers group. And I really encourage you, if you haven't joined the first house buyer group, get over there on Facebook. Join us. I'm going to be taking up and interviewing a number of the first home buyers through the next couple of weeks and posting that information, helping them work out where they should be buying or even if they have bought the right property or what the next step is. As you know, with the Financial Freedom framework, we look at six different ways that you can actually go through the whole buying process to allow you to buy your feature first property, use all the grants that are available to you and have the choice once that you've complied with all the grants criteria, which is different for every state, going back and maybe moving out and converting that property into an investment property. But just a heads up, if you are going to get the First Home Loan Deposit Scheme or apply for it in January 2020, July 2020, it is really important to know that if you do move out of that property then you're probably going to lose lose that grant and you can't refinance that property if you have that grant available to you. So you have to live in that property whilst you have the benefits of the grant. But if you use all of the criteria and all the information that I've shared with you, what you now know is how to buy an area with growth potential and as your property grows quickly, your deposit or your Equity in that property will quickly get higher than the 5% up to the 20% and you can release yourself from that first home loan deposit scheme scheme and get a traditional loan. So all very good. There's a number of things that we've covered today so I'll cover that in a speedy recap. But what I also want to share with you just before we finish is those suburbs in the spotlight that I have mentioned for the month. So let's have a look at those because I think that these are ones that I would consider for December 2019. Now the ones on the left, as you can see, Brisbane Upper Mount Gravatt. We've already been through that and thank you. I hope that has been a benefit to you both. Who posted that as a suburb for selection it is actually on my list. So it satisfies my pricing pressure. It satisfies all those filters around percent, percentage of renters, vacancy rates, all of the things. And it's between the, the price cap that we're looking at for some of the areas as well we're also looking in. So it satisfies all my criteria. But you're going to have to go and check the price gap. So when we're looking at Queensland475 was that price cap and as we saw the price median price for Lalor Upper Mount Gravatt was a bit higher than that. So you wouldn't be able to put this under the first home loan deposit scheme. But it's definitely a area that I would look for as an investor or a first home buyer who's thinking about turning their property into an investment in the future or a first time buyer who just wants to get some growth in their property so when they sell it and buy the next one they have a lot more equity to work with. Sydney Lalor park is definitely within the first home loan deposit scheme cap. So just a quick recap. In New south Wales that's 700,000. Laylaw Park's median price was below that. Here's some other areas where we had the pricing pressure and it satisfies the pricing gap, the first cap for the first time loan deposit scheme and it satisfies all of my filters for vacancy rate, number of sales per year and the percentage of renters. So we've got prospect in Adelaide which has come up time and time again and in Melbourne we have a dear old Deer Park. Now over in Hobart and Perth I've noted down two suburbs here to have a look at. Now they do satisfy my filters but they don't satisfy my pricing pressure. So I can't see enough evidence of suburbs near them that are pushing on it to push the price up. But they're definitely on my watch list and you know now how to do your initial assessment so that you can jump in and get some more data on those and learn a little bit more about them. So I'd be looking at, you know, the fact that it has population growth, it has income growth going to the council, see what kind of development plans they have for those suburbs. Get in and just do some more research and census or and the demographics and get to know what the suburb looks like and the typical property because this is going to give you a huge advantage. Now unfortunately nothing came up in the act in the price point and nothing came up in the Northern Territory either. So I didn't forget you guys. It's just that there's nothing that's come up this month on my list that I would share with you. But I think these are, you know, these definitely suburbs that I would consider for you to look further with. So definitely suburbs that would be on my watch list. So let's progress a little bit further. I think we've covered so much information today and you know there's been a lot of things that we've discussed and there's been a lot of things that we've been able to talk about. So first and foremost let's do that. Speedy recap. Okay so today in the Speedy recap in episode nine of the first Home Buyers show we discuss where to buy with the money that you have now regardless of whether you're a first time buyer who wants to live in the property forever, an investor who's looking at buying in the best suburb vacant and follow up Ford or someone who wants to qualify qualify for the first home loan deposit scheme. You are all looking for an area that has good capital growth potential to create more equity in your property and more wealth and giving you the freedom of choice to choose where you buy. Now we looked at a number of free software and platforms and websites that you can go to and they include realestate.com you're looking for the suburb reports and domain.com we then jumped over straight to the source and looked at census. So we went into the census data to find out information about the percentage of renters and the typical type of property and then we jumped over into SQM research to find out about the vacancy rate. Now I also shared with you my Suburb Selector software. If you are interested in that head to the Link that I will share with you. It's called Location Masterclass. My Diamond Investors Toys Mortgage clients do get access to that straight up. And all the methodology on how to find the suburb to buy in, it includes all of my filters and all of that research that you could go through all those different websites to get all in one place. Just because I'm lazy, that's why I developed it. Now the things that I want you to consider when you're thinking about filters, pricing pressure. We talked about what's called the ripple effect. And the ripple effect is when people can't afford one suburb, they then look to the next suburb and we have a supply and demand issue. All of a sudden everyone's over there demanding the properties. There's not that much supply and the prices go up. Pricing pressure is one of the things we consider. We then look at filters about protecting your investment, be it a home or a potential investor. We want the typical type of property. So we want to know is it a three bedroom house? So that we know exactly we're buying the typical property that if you want to rent it out, most people want want to rent it, we want to sell it, it's going to sell quickly. We then looked at things like the percentage of renters. Now this is going to be an investment property in the future. I want to have at least 30% of the population or the demographic in that suburb to be renters because I want demand. And another way to check that is vacancy rate. Vacancy rate tells me if 3% is considered the equilibrium. If it's less than 3%, there's more people looking to rent then there are properties on the market. And for you as an investor wanting to rent out your property, this is a really good thing to know. So you want a less than 3% vacancy rate and then you know, I just don't want to waste my time in suburbs. But there's not enough properties. So what do I do? I jump on over and I check out what the number of sales have been for the year because I want to have a true indication that I'm not wasting every weekend if there's only one or two properties that come up in the suburb. Now I suggest that you select three to five suburbs that you actually do this analysis on and then create your watch list to find the typical type of properties when they come on the market so you're notified quickly. Now as I said, there's free and there's paid software. I also use RP data. Now my investors choice mortgages, clients all get access to this when they have pre approval and I do that and cover that $150 a month for the access to RP data because I believe so strongly in giving you access to all the data and research that you need to get a property quickly. So you can create watch lists in there for the typical type of property which you can also do in real estate and domain. It also allows you to create valuations which you can't do in real estate and domain. But the valuations are the similar information that the banks use to value properties. So it gives you a little bit of a heads up as well. And it also allows you to see the past properties that have been sold, gives you an idea of the sale of properties and the prices they've sold in the area. And one of the things I love the most is that suburb report which gives me the disparity between the renovated and the unrenovated or the median and the high price and low price within the suburb. So I can do a quick calculation and work out that if renovation is my strategy, if that that suburb is up for that as well. So as you can see in this speedy recap we have covered a lot of things. I shared my top suburbs that I'm looking at within that price range as well. 375 to $700,000 across Australia, one for every state. I'll be doing that every month in the first house via Facebook page. So make sure you're in there. I will review once a month a couple of those suburbs so that you can work out how and where your dollar is going to have the best bang for its buck. Anyhow, that is the speedy recap. This is the first home buyer show. As I said. Head over to firsthousebuyer.com if you want to have a lending eligibility test 2 minutes quiz. We can work out really quickly whether the lenders and how the lenders are going to assess assess you. Then there's also the eligibility online assessment for the first home loan deposit scheme. I'll put a link below for that as well. And as always, this is the first home buyer show. It's been really exciting being part of this with you for the month that we've been running this and for today to share with you some of the really exciting things that I think that you can do and some of the research tools that are available for you that allow you to actually get ahead of the curve and beat everyone else. So that's it from me and as always, here is to your property success.

And that's it for this week's first Home Buyers Show. And Jane will be back next time with more tips, tricks, resources and interviews.

See you then.