Q&A Call - Module Two - 10-04-2014

Start recording. And you might. You've already started to share your screen, so let's go. Okay, well, welcome everyone. It's Jane Slacksmith here. And John, welcome to Module 2 Suburb Selection Q and A for the ultimate guide to renovation. And John, welcome to you again.

Hey, Jo. Hey everyone.

This week you hopefully completed module 2 suburb selection and got your first taste of our suburb due diligence system. And let's be honest, some of you might be thinking, oh my goodness, goodness, goodness, goodness, that's a lot of work, but don't let it overwhelm you. It's a lot of information to take in one go, but all you need to do is one step at a time. Just start from the start and do bite sized chunks a few hours at a time and soon a picture will start to emerge. We don't expect you to get it all done in the first week. Now, the rewards are well and truly worth it, so stick at it. And it does take time. Now, I've taught this system to people in the past and before they've even started, they're trying to find ways to cherry pick the bits that they think they actually need and leave out the bits they don't like. They think, I don't need to do all that, I'll just do these bits. Or I can tweak it a bit here to save some time. And I say to them, the thing is, this is a recipe and if you want it to taste the way it says on the box, you've got to kind of follow it as it is. If you take bits out and it's not working the way it's supposed to, well, who's to blame? So at least for the first time, get it working right, understand it fully, and then you can start to tweak it on your next purchase or the one after that. But this is a proven recipe. It's kind of like the old CWA women scones. We know it works. So because often you're not actually far enough along in your education to tweak things now, we've really stepped this out step by step and that's what's happening here. So, you know, basically what I want you to do is to avoid any unnecessary work and avoid some of the mistakes that other people make. So, you know, as I said, it's kind of a recipe. I know some of it seems like a lot of work and some of it seems kind of unnecessary, but don't start tweaking it and don't leave out the things that you think you might know or you may not need to understand to do all this. It's really kind of human nature to avoid discomfort and look for the easiest path. So what I'm getting at here is the system works. So how do I know? Because it allowed me to build a multimillion dollar property portfolio. But it does take some work the first time, but next time it gets to be a lot easier. So the question really becomes, are you willing to do what it takes to make it work? Because if you get this right, the rest is really a walk in the park. Because finding the right suburb that suits your budget, your strategy and your buying criteria is really just that important. It's really the foundation of what everything else is built on. Now, coming up in today's call, I have a really, really special announcement to make. And it's an opportunity for two lucky people to receive one on one coaching from us, as well as some other fantastic support and additional resources. Now this is called the Fast Track Ambassador program and I'll tell you about it in just a minute. But this is open to past students and to the current students. Now first, before we get into questions, just some quick housekeeping. Firstly, if you're on your computer and you're experiencing problems of hearing, you know, or we can't hear you during the questions, there is an option to call in on the telephone. The telephone number can be found in the sidebar under the Audio options drop down menu. You can call that number from a landline or a mobile phone, or if you're like me, you can use a Skype account to call phone numbers and landlines now. So when you have a question, all you need to do is raise your hand by pressing the little hand icon in the sidebar menu. It's quite small and kind of hard to see, but it lives directly above the audio tab and is at the very top of the GoToWebinar control panel. So clicking the hand button, that will notify me that you have a question. And when it's your turn, I will unmute your line. When I do unmute your line to take the question, you will get an automated message that will say you're alone, you, your line is unmuted, and then you know that it is you that I'm answering. So as always, there's no such thing as a silly question. I really encourage you to make the effort to engage in the process. You can also ask questions by writing your questions into the question box at the bottom of the control panel. I'll also try and get to these in the time we have available. But I really do give priority to the spoken question and that's because it's really a lot easier for me to understand the question fully and to get to the bottom of it. You can. If I can ask you things back in real time. And also it's more engaging for us to have a bit of a group chat and, you know, we'll get to know each other and hopefully we can add some really good value to you. Now, some people have actually can't attend the call live today and they have sent through some questions via email. We're going to be announcing another initiative at the end of this call about how to make that a whole lot easier for you in the future as well. So that's great. Now also, make sure you're getting onto that Facebook group. Ask your questions there too, as they come up. There's so many really experienced people in the Renovator network who are extremely generous with their time and support and there's some incredible discussions going on there this week. It's a fabulous resource. People are sharing resources. There's some conversations about loans, there's conversations about, gosh, what else have we seen this week?

Oh, so much this week. It seems every week it gets better, doesn't it?

I know. Oh, some discounts from Masters. There was a discount code put up online. So anyhow, getting there now, I have to apologise to some people who've requested to be part of the Renovator Network. Word has got out. We are getting hundreds of requests and not all of those people have actually paid to be part of the Ultimate Guide to Renovation course. And if your Facebook name is different to the name that we have on our enrollment list, then we don't know that it is you. So please also just shoot through an email quickly and let us know.

Yes.

And John's onto that within hours, usually. So if it's more than 24 hours and you haven't given access to the.

Renovator group, there's something wrong. Normally within a couple of hours if you haven't been given access to something wrong.

So don't wait, don't wait, get in and participate. Yes. Lastly, just a reminder that this is not a tech support call if you experience any problems with videos, downloading, etc. I'm not the right person to. We did get an email during the week. Someone couldn't download one of the Excel spreadsheets and it turned out that They've got a 2002 version of Office, so we jumped in and we customised the spreadsheet to a much lower version and they've got access again. So we do whatever it takes to make it easy for you to use the resources. Guys, if you do need technical Support, support@yourpropertysuccess.com and we'll get the right people onto the fixing that for you. So great to see so many people here at lunchtime. So, before we get on to module two, let me tell you about this really exciting program, the Fast Track Ambassador program. And this year we're trialling this as a new initiative. Now, the Fast Track Ambassador program is for a few select individuals who are highly motivated, ready to buy now, and willing to share their learnings and experiences with others publicly. So what I require is two volunteers for this program. You'll have to take a survey. There may be some really stiff competition, but here's what you're in the running to receive. The successful applicant will undergo an accelerated program of one on one coaching. They're going to have access to other resources not in the program and also get full and immediate Access to all 12 modules of the Ultimate Guide to Renovation 2014, if you're a new enroll enrolling student. So becoming an ambassador for the Ultimate Guide to Renovation involves documenting and sharing your journey publicly in the form of written posts, photos, video posts. And the idea here is that we'll be putting our time and effort into you, but you have to be willing in turn to be generous with your time and be willing to take an active role in sharing your information that could assist others. Now, many of you are already doing this within the Facebook group, so we're not talking about anything formal here. Being an ambassador also involves taking the time to share experiences with new and prospective students. So let's talk about those rewards one on one coaching with myself and John via three phone calls. Now, that's one call each, plus an emergency up the sleeve. Sometimes you just need that, don't you, John?

Yeah, ceiling falls in, that kind of thing.

Or you're looking at the dream property and three dream properties come up and they're all within half an hour of auction of each other and what to do. So that's two calls, one with John, one with myself, and one emergency call. There's going to be three private webinars for Fast Track members only. So that's the two of you and the two of us. Immediate access to all 12 modules of the Ultimate Guide to Renovation 2014. Access to the new and exclusive Ambassador Facebook group, Free access to some paid resources such as some of the residentex reports. Ripe House property software, lots of stuff. And last but not least, a free lending assessment from Investors Choice Mortgages, which is obviously optional, but perhaps the biggest advantage is the benefit of accountability because, and I need to say this up front, everything is there in the course already. We won't be teaching the Fast Track participants anything different from the course material, but it's the accountability that's been shown to increase the results for people. So even if you aren't selected, you shouldn't feel disappointed because you are part of what we believe is the best property investing course of its kind in Australia. So take action yourself to get some accountability. Make a commitment to the group or a partner or a friend to finish the suburb selection exercise by a given date. So back to the Fast Track Ambassador program. Here will be your responsibilities as our ambassador. A firm commitment to undertake the necessary research and to follow the processes outlined in the Ultimate Guide to Renovation course. Be ready to buy now and have clearly defined goals. Be willing to document the entire process publicly by daily and weekly online posts. Take on a type of mentoring role by sharing your knowledge with new students inside the Facebook group. Be available to provide feedback to people considering joining the Ultimate Guide to Renovation program next time we release it. So that's it. You'll receive an email tomorrow with all the details and the link to the Fast Track Ambassador application survey. Look, I really think this is a really exciting program. We're always up for new things and ways to improve the Ultimate Guide and Renovation. So if you can think of any great ideas, let us know. But we're constantly being asked. Well, I'm constantly being asked to do one on one mentoring and time is a limitation.

Yeah, this is a way to leverage your time as well.

Yeah. And really, I mean, gosh, we just, we want a case study and showcase really some of the success of the students using the staff. So really exciting things and can't wait to see some of those survey results. So this week, let's get on with it. You have been through module two, the suburb selection system. That's been the foundation of my property investing success and I hope to hear about it becoming the foundation of your success too over the following months. Now, this module was designed to enable you to identify the suburbs within your price range and then how to systematically narrow down that list of suburbs to a short list of three to five suburbs with the best renovation potential. Now these are kind of like your own hotspots really, so it sounds easy when you say it like that, right? But those of you who started it, it's a lot of work, but it's worth it. So some of the things we also covered in Module 2, and we're going to give priority to answering obviously the questions in module 2 today because I know there's a lot of people who have got questions that range the entire gambit of other things. And we got a lot into that last week, but we're talking about banks and their lending criteria, how to use a mortgage broker, establishing the suburbs within your price range, researching historical capital growth in your chosen suburb and surrounding suburbs, the ripple effect, identifying the drivers of future hotspots, buying around the median. Research using the data in the property magazines, pricing disparity between unrenovated and renovated houses. Where to find out about infrastructure plans and improvements, predicted future growth, capital growth for a suburb. We talked about rental demand, rental yield, population demand, researching your demographics and finally getting down to those three to five suburbs. So there should be one or two questions on that at least. I guess the. I know unless you've got superpowers, you won't have been able to complete Module two. So, you know, give yourself a break. Submit selection exercise that is in this module is a little bit. Well, it's lengthy, isn't it? It takes a lot of thinking. It is.

Oh, yeah. Each time I've done it, it's probably taken at least three weeks and that'll be going if I had a fair bit of time to dedicate to it.

So, you know, as I said, this is really a foundation. You can come back to this time and time again. Obviously we're going to be marching on to Module three next week or tomorrow you'll be getting access to that. But, you know, don't feel like you're falling behind. You can go through the learning of the future modules and whilst you're doing this as well, because it's really important about getting this right, isn't it?

It is. It's been one of the biggest pieces of feedback about the course is it stopped people buying the wrong house in.

The the wrong spot. And even those who've used it to identify look at the current portfolio and go, is this a dog? Do I have to get rid of? So I think that's really important. Now we're going to jump straight into the questions. So I've rambled on for 15 minutes and shared some things. There's been some interesting questions that have come through this week and I want to go into a little bit of detail for each of those. I've Also got another couple of questions being posted here. I don't see any hands up at this stage. Anyone got their hand up? Let me just have a quick little look at that. Oh, Aneesa, we've got your hand up, so why don't we try to jump over to you first of all and have a chat. So, Anissa, Aneesa, great.

How are you?

Good, thanks. Jane, I've got a couple of questions, but if we don't have time for both, that's fine. My first one was, is Residex the only place to find predictive growth reports? Yeah, that's a good question. Look, obviously past data on sale data, Australian property market monitors and even SQM and obviously RP data provide those as well as Residex. Residex are the only ones that I've seen that have actually put in the capital growth predictions that you can actually get. Have you seen them anywhere else?

I can't think of anywhere else. But one of the advantages of the Renovator report is it's got the predicted growth in as well as the spread of values index.

So that's the Renovator report that does the top 100.

Yeah. So you've got two reports, the one for the entire state or the entire metropolitan area, which ranks the top 100 suburbs. And then you've got the individual suburb ones. Now I think it's the entire state or both have got the predicted growth.

Yeah. And I think that the state one's handy because you've got the predicted growth for 100 suburbs.

Yeah.

So you kind of, you know, with the other one, you just buy in that one suburb.

Yep, yep. They're really good value, I reckon, those reports.

I know, look, they're a little, you know, you might consider them a little expensive, but it's one of the things that, you know, I've looked at in the past and thought, you know, this is really handy stuff and I think I kind of pulled them up before and shared them with you. Maybe I can share my screen and show you one of the older ones that I've got here.

Just.

Have you seen the report at all, Anissa? No, I haven't. I looked at the example that they have. When you go in there, you can have a look at a sample of it. Right. And they don't do a Mac version either. I think they have to send you a hard copy of it. Yeah, that's usually the case. So I'm going to show you my screen. So this is just an example from September last year. Can you see that report has it come up renovated? Top 100 for country New South Wales. Great. So essentially it goes through the properties with potential units and houses by alphabetical order and by capital growth and by rental return. So they've got the top hundred but then they list them in different ways depending on what's important to you and as you can see here, they've got listed Port Macquarie September last year was noted down as the number one. I know there's a bit of a conversation I've had with a few people in renovated network about Port Macquarie. Been there quite a bit in the last two years. My parents retired there. But you can see here, you know, it gives you the predicted growth of the next five years and eight years, the number of streets that have renovation potential, which is interesting and you can obviously this is one tool in the toolbox. I would be pulling out the census information, looking at number of streets in the suburb as well. You know, 195 out of 200 is pretty extraordinary. 195 out of 20,000, not that great, you know.

Yeah, it's unlikely that you're going to get number one in the, in the renovator report and it's going to be the same number one that you've got on your dot map and what all your other criteria spits out. So it'll be a compromise between everything.

And here's a sales count also of 190. So it's not like there's only a few.

Turnover.

Turnover, yeah, and a medium rent, rental yield, you know, medium value. I'm not going to go completely off topic here but weird thing about Port Macquarie is it really is, it's the funniest place I've ever been because you go to the equivalent of like a Westfield called Settlement City and like every 50 meters they have a heart pump thing. So if someone has cardiac arrest they could give them a bit of a heart stuff. They're all oldies and down the main street they have a plug in your scooter charger in case you get down the street.

Well that'd be single level two bedroom units, wouldn't it?

Yeah, exactly. And you kind of, you go past the chemist and rather than having, I don't know, whatever they normally have in the front window, they have incontinence pads, creatures. So let's just say it's an aging population in Port Macquarie and due to this is my personal opinion because every time I go up there I look at all, all of these properties are for sale. I've got to be honest, I'VE got three uncles up there who are real estate agents, have been there for 30 years. But my grandfather was a real estate agent back there in the 50s and 60s. Yep. So in 70s and 80s, but yeah, so.

So when you do the rings on the dot map, you'd probably have them coming out from the bowling club.

Exactly, exactly. And there's two bowling clubs. One has really good coffee. But the funny thing about that age population is as they die off, all these coffees are coming up.

Yep.

So there's always this stream of properties.

Yeah. That are really dated.

So I'm sorry, that is a little obtuse, Anissa, but. So this kind of, and obviously focusing on this kind of gives you an idea. This is where that growth is. So you, if you buy that report, and I think it's $200 or so, you're actually getting that kind of information. So. And if you want information on a particular suburb, you just purchase an individual report on that suburb. Exactly. Yeah, exactly.

You can leave that till pretty late in the day too. Like you get all your other research in. And so you're down to it because otherwise you can be buying a report and then a couple of weeks later you kind of find out a few more things about the shortlist. And now you've got to go and buy another $250 report.

And reparity talks here about. Just asked a quick question following up and you're saying, how does the Residex reports compare to hot spottings? Look, I've been personally buying the Residex reports and Terry's reports for a couple of years now. And Terry is Terry's reports. Well, he used to write for Financial Review and be the property editor for like the Brisbane Courier and stuff. So he's a words man where John is a numbers man. So this is why you're getting in here, the numbers and while you're getting with Terry, the story. So I recently was asked to write for a reader who wants to know if he should be selling his property in Gladstone. So I pulled up the Residex reports on the growth predictions for Gladstone and then I chatted to Terry and said, Terry, what's the drill on Gladstone? He's talking about, well, you know, we were obviously into the running mode now there's a few projects on the horizon. They're not going to get up for a while. If you can afford to keep, you might keep. I mean, so he's giving you the commentary and so that's how those reports are different. He's not going to say we expect for 5 to 15% growth in the next few years. So when Terry and I have done webinars together and he talks about Albury, Wodonga or somewhere else to buy, I'll be pulling the Residex and saying, well, the predictor growth is this. And why do you verify that? So that might give you a bit of information about that.

Can I just say something about the spread of values that the ranking on the suburb reports is on the streets that have the greatest spread of. At an individual level it's saying, right, which of the streets that have the greatest spread of values in this suburb? And then it says, right, we've got, let's say 100. Now comparing that to the other suburbs, which are the suburbs that have got the most streets of that kind, because it ranks the suburbs that way, it does favour bigger suburbs over medium or smaller suburbs. So sometimes even though you'll have a one that's marked kind of up the top of the list, maybe in the top 10, you might find a medium sized suburb is actually better because it's a smaller suburb, but it has a greater number of streets with spreader values compared to its size or relative to its size. So yeah, just going back to that kind of one tool among many kind of thing.

Exactly. Excellent. Now we've got. Is that enough for you, Anissa? Is that what you're after? Yes. Thanks for your help. Appreciate it. No problem. I'm going to. Should I pick up on this now? Okay, I'm just going to show my screen again. Can you guys see that? This is by the way, my new website I'm very proud of. But can you guys see this Property plus calculator? Oh, I'm just going to unmute you. Can anyone see it? Anisa, can you see that Property plus calculator? You can see it. Perfect. Okay, I'm just going to show you how to use it. This is on the front page of investorschoice.com and what I've done is I've teamed up with Residex and tried to get some access to some of the past data. Now we also covered in this module a bit about borrowing capacity. So there's a couple of things I just wanted to touch on because there's a few confusion. I've got some questions here about one of the spreadsheets, but this allows you to do a really quick kind of borrowing capacity for yourself. You know, you might use today's interest rate, Most loans are 30 year term loans. Or you might say, you know, in actual fact, I've Got I want to use the average long term interest rate of 7.5%. You know, you've got a deposit of, let's say you've got $100,000 available. And what it does is it essentially goes through and it says, well this is your borrowing capacity. And remember this is not specific to self employed or casual bonuses or commissions or new in your job. This is just a really generic number. So this is kind of handy. Don't you know, pay a little bit of attention to it. But it's all okay. They've essentially just taken your borrowing capacity and added on your $100,000 deposit. So there's no allowance there for stamp duty. Kind of gives you a little bit, you know, where are we? But this is the really exciting thing guys. So here. And you can change this. So we might say 550,000 is, you know, your purchase price. You can jump into here and you can choose the state. So let's choose South Australia for our South Australian people. And let's choose maybe Salisbury. And we choose houses. And what it does is it comes up within that area of all the surrounding properties. Are you loving this? I'm loving this. This is, I'm expecting people to come to this website a thousand times a month just to look at all this stuff because I'd just never be able to get in one place. Gives you the median values. Now this is updated directly from Residex daily. The past 12 month growth, the past 10 year growth. So this is not the paid for 5 and 8 year growth that they give in the future. This is the past stuff. So Tasia said, I know she's asked another question, but if you're looking for growth information here, but more importantly, take your three to five suburbs or the suburbs you're looking for in your dot map and put them within this area and this is going to come up really quickly with that median value. So this is another tool that you can add in to your toolbox to really assist you. And I know it's shameless plug and whatever but you know I spend a lot of time and effort making sure that there's some really amazing resources here. So this is, you just get this straight off the front page. This property plus calculator. Get in there, use the calculator, you don't have to sign up, it's all there, it's all free, past growth but more importantly some of that hot spotting kind of information to assist you. So I think that's pretty exciting. So let me give you back the reins here on the the screen, John. So let's have a look at the next question that we've got. Hey Faye, you've got your hand up? Faye, how can we help?

Yes, hello, Jane. Hey, thank you, Jane. Jane, I'm calling from Western Australia and we're in a position where we've been doing some downsells to try and eradicate some heavily negative deed properties and we've been keeping the profits in a redraw facility to kind of act as our own bank. Now to be able to try and purchase something which is more positive. Renovation strategy obviously is in there as a possibility. The main issue is that we don't have a lot of funds available. So buying or looking at suburbs around the city, close to city and you know, a lot of the sort of high end suburbs is really going to be out of a question because we need to do an all up buy rather than loan money. So what are your thoughts please on regional areas and would you change how you go about doing your dot map or property selection or street selection any differently? So I'm trying to sort of look for areas that we can actually afford with maybe just a couple hundred thousand.

Okay, so just to clarify, you had a borrowing capacity obviously when you bought these properties and things may have changed so you don't want to take a loan out again. What you're using is the funds completely to buy a property unencumbered and do the renovation potentially flip, Correct?

Correct. We're definitely not in a position. Our original loans were all done based on no doc loans which of course no longer exists. Yes. And because our portfolio is substantial with a substantial negative gearing factor in there, our income is still a long way shy of being able to facilitate any sort of loan serviceability.

Look, that's a really good question because my portfolio is definitely Capital City based. But more and more I working with a number of my clients who, who you know, I guess, how will I say this? I guess there's a maturity sometimes in investment strategy that kind of says hey, if you can't afford to hold an entire negatively geared portfolio that you are doing because you believe the growth is going to be the winner of the day and allow you to get to your end goal, etc. You need to diversify between a mixture of potentially the negatively geared growth and as I've said, and we'll show you in future modules, I believe that you can make Capital City properties almost mutually geared with the renovation strategy. But moving to regional areas and having a fundamental looking at an area that has fundamental Economy that is not single industry based but has multi industries, has some upgrade, has some infrastructure kind of plans and we went through some of the places that you can get some of the infrastructure information from. Even as I mentioned hotspotting, Terry Riders reports, he goes through and he talks about the mussel towns and he talks about the hot spots in different areas and different kind of the infrastructure changes. He has some really great little reports that you can subscribe to as well. I think if I was going to be in your position and go look, you know, I've got 200 grand, that means that my purchase price, 200 grand for the purchase price, which means you probably need 250 for a bit of stamp duty and renovation and potentially a bit more if you're going to do a structural renovation. I'd be looking as you say regionally, but I would be looking at the regions first to help before you get into the heat map. So when you're looking at the regions first, what you're doing is you're actually looking at that infrastructure, you're looking at the economy. So you're almost kind of jumping ahead from the heat map because let's face it, Tamworth for instance has four different Residex reports because it's classified in four different areas. But for most of those regional towns there's only one postcode or one Residex report, one predicted growth, one median price just because of the sheer population of it. So you might look at esperance or you might, you know, you might look at some of the. What's that? It's not Geraldton. What's the town south of Perth that's got the big port that's being built?

Bunbury.

Bunbury.

Bunbury is it? So you know, you might, I don't, I mean I don't know what you think John, about this, but I think sometimes that the heat map exercise for the regional areas, you know, it's really, it's really, really good for the metropolitan. But when we get into the regional areas where there might only be two dots on the map, it's not really important when we get into understanding the demographics, the rental demand, the yields, the population growth potential and all of that, that to me is what's more important when you're doing a regional strategy.

So would the residents regional report be a good first step then for that to start narrowing down stuff? The one that you showed before?

Yeah, the hundred top country. The only state that I've seen that doesn't separate metropolitan and regional is Queensland. They have them all Together, but in every other state I've seen. So Western Australia would have, you know, Perth and then it would have regional Western Australia. So you might just want to have a look at that report. I mean, as we just looked at the New South Wales one. But yeah, it's a really good question because I can. You don't want to rush out and buy 10 maps of 10 regional towns and then go, oh well, I can only stick one number on it. So when you get to the next exercise, which is, you know, getting into the, the pin map for the street level, definitely it doesn't matter if it's regional or metro. But I think it's a good comment to make that if you're looking at doing this regionally and especially being very strategic as you are, which is using full funds to buy an unencumbered property, renovate it and flip it so you're not hitting your credit file, you're not asking for permission, you've got funds to walk in and get a really good deal. I've got the cash today. Let's do the deal rather than let's wait for finance. You put yourself in a really strong position. Just a quick comment though, just speak to your accountant about using the redraw rather than a line of credit, especially if it's against your home and especially if there's potential for you to ever mix up your deductible and non deductible debt that's in the redraw. Like if you're putting all your pay into your redraw as well, then putting all the proceeds of these funds in, everything's going to move up. So just.

Yeah, yeah, got that sorted.

Perfect. Excellent.

Yeah.

Okay. Does that help?

Yes, it does. Yes it does. And we've noticed a lot too that in the regional areas very often there's a lot more potential for the rental. You know, like we can sort of pick up maybe a property that's valued at say even $110,000 and it might be getting 220 a week. Ren. So right now that rent is quite high, the rental yield is quite high. But of course I need to do more study on making sure that the saleability of the property, that there's enough going on in the town to make a sale happen fairly.

And also just make sure that you're not over capitalizing for the town either. I know I had a cousin at one stage trying to buying. Oh God, what was it? Cassilis and I think they had 1500 houses in the town and they sold three a year. And he. He finally bought one and renovated it beautifully as a home, but there was no one who could afford to buy it ever off him, you know, so. Yeah, and I mean, and you're excluding yourself from a lot of the postcode restrictions and population restrictions that the banks have by doing this out of your redraw or line of credit. So. Okay, great. Good job.

Good. Thank you.

Really keen to hear about our Western Australia friends. There's a couple of you, isn't there? Three, I think.

Last week.

Two of you are neighbours. Did two of you turn out to be neighbours?

Yes, there's a lady that lives just at the bottom of my street, so we'll have to catch up.

It'll be 6am walking meetings around doc maps and things.

Awesome. Thank you, Jane.

Okay, bye. Okay, let me see if I've got any hands up, and then if I don't, I'm going to go to some of the questions that are listed here. Okay, no more hands for the moment. So I'm just going to Vesmer's online, but her speaker doesn't work, so we'll give it a go, Besma, and just.

See if you can.

Oh, Vicki's got a question. Okay. Besma, can we hear you? Can you hear us? Do you have a microphone? Okay, so let me just tell you what Vesna wanted to know about. She says in module video 4, in regards to the possibility of rents decreasing when values increase. Can I explain this? Because it doesn't make sense? Vesna, I understand why it doesn't make sense, because it is kind of one of those weird things that just I've noticed through my portfolio. And this is the thing.

Right. Sorry, can I just clarify? You don't mean rental yield there. You mean actual rents decreasing?

No, I mean rental yields.

Yeah. Yeah.

Rental yields decreasing. Yeah. So I don't mean rents will decrease in the renovation.

Yes, that's the way I read the question. And I wondered whether she misunderstood that as rent rather than rental yield.

Oh, good. Pick up. Okay, so if you're going to renovate a property and you're not going to get a rent increase, then that's a problem. You probably wouldn't renovate unless you're doing it to add a lot of value and get the equity and you don't have an issue in servicing that additional debt. But, you know, I question why you wouldn't get a rent increase. But from a rental yield point of view, I've noticed with my own portfolio, when you kind of hit the property value around 800,000. The rental yield that might be characteristically in the city of 4.5% to 5% drops down below 4. So you're looking at maybe a 3.5%, 4% return. And I know over 10 years of 13 years, however long I've been building my portfolio, we rented whilst we were building our portfolio, and we could always rent somewhere where we wanted to live, where it was costing the landlord 1,000 bucks a week, where it was costing us 500 bucks a week. So, you know, we were living in these incredible properties and, you know, they're getting a really bad rental return, obviously rental yield on it. But that's just been my observation as your property. Have you had that kind of observation? Makes sense.

Yeah, it does. Well, can you just explain how rental yield is calculated? The ratio between the value and the.

So basically, take your rent per week. So let's say it's $400 per week. I'll leave my big calculator at home. And you times it by 52. So 400 times 52 is going to equal.

So 52 for weeks in the year.

For 52 weeks in the year, 20,800. And then you divide it by the value and the value might be, let's say 450,000. So what you have is a rental yield of 4.6%. So that's how you get the rental yield. So in theory, as the value of your property goes up, your rental yield should be the same, but the rent should go up. Yep. So that's the kind of, you know, what rent should I kind of get if my $450,000 property goes to 500,000? Well, 500,000 times the 46 that you're getting before 23,000 divided by 52, your rent might go up to 440 a week from 400. So the rental yield doesn't change. But I'm just saying the tipping point is around. When you're looking at properties around 800,000, and you might go from 700 to 850 or 750, 900, maybe structural renovation. So when you're moving over that kind of level of 800,000, you don't. You can't necessarily go, well, it was 4.6% before, it's going to be 4.6% afterwards. And I'm going to go from a $600 a week to $750 a week. You may not. You might go $600 a week to $660.

Yep, yep. I remember you showing me a graph years ago. With the. It was over the period of time, probably four years. And the median, it was a median price graph compared to a rental yield graph. And as the median price got up, the lines crossed over as the rental yield went down and it got up. But I attributed most of that the fact that rental appreciation doesn't keep up with capital growth. So as the capital growth grows and the rental yield doesn't keep up, then that ratio gets worse and worse.

And it's an interesting. I have had a chat with John Lindemann actually as well about that. And he used to map, and I probably still does, don't look at his stuff anymore, but he used to map things like a number of towns or suburbs and he used to look at the rental yield and as the rental yield start pushing up, it was one of the things that he considered he'd go, well, investors are going to start being attracted to this area. So the properties are now undervalued. Investors are going to come here, so growth will happen. So it was one of his identifiers for hotspotting, which kind of makes sense. Yeah, good. I hope that helped you out. I think we answered those questions not knowing which one you had, but hopefully that assisted. Hey Vicki, let's get you on the line. You've got a question for us. Vicki, can you hear us?

Hello?

Hey, Vicki. Oh, hi. No, you actually answered my question as part of that discussion. Thank you. Okay. Anything else you want to add? Not for the moment, but keep talking. It's very interesting. How are you going with that dot map.

I started?

I have to confess, I haven't had much time to work my way through module two. That's fine. Well, I've got to be honest with you, I think this time, quick Q and A call, this time last year, I think three people were still trying to track down the map. So, you know, don't be too hard on yourself.

Well, a lot of people now from the November intake are now doing the exercise fully now.

Yeah. So that's why we give you access to this stuff live. Ok, Vicki. All right. Lee, I've got a question here from you. Hi Jane, could you please elaborate how a negatively geared property can go to a neutrally geared property after renovation? Okay, sure. So basically, and this is kind of using the Trident strategy in its completeness, if you're buying a property that could be worth say 350 or $400,000. So you're buying a property worth $400,000 and you're negotiating down to a point of, you know, let's say, what did I say, 400,375. So you're actually kind of making that 25,000 value up front by buying it below the market. Then there's that opportunity there that you've actually got to have extra equity really in the property from day one. And, and then you're renovating. So say you're taking that $400,000 value property and you're spending 40 grand on it, on a renovation and adding $80,000 in value. So you're taking that to a $480,000 property and the rent will go up based on that as well. So if you're not taking equity out of that, but you've got a loan of, say maybe you're buying at $375. So maybe your loan is say 350, 340 loan, and you've got a $480,000 property and you've got your rent going up. And then we throw in capital growth and now all of a sudden you've got a $480,000 property going up, let's just say 10% a year, just to throw in the numbers and make it easy for me. So, you know, you're going from, what's that, 480 +48. You get to a 400 $530,000 property in the period of maybe one year of buying the property, having a little bit of growth and doing a renovation, and your rent goes up to reflect that. And let's just say your rent was based on 530 a week at 0.45. So we would have $460 a week in rent and your original loan was, you know, you bought the property at 375. And let's just say you had a 90% loan. So 337, 337 times a 5% interest rate means that your interest per year is around about $17,000. Your rent, we said was about $23,000. And remember, and we're going to get into this bit later, but I usually take about 25% of the rent on costs. So just those additional costs of say $6,000 a year. So if you've got $6,000 a year plus 17,000 for your interest repayment, you're getting to a 23. Don't you love it when the numbers work out? You're getting to a $23,000 total cost for the property. And we've just said it's a $23,000 rent. So you want me to try to do that one more time and show my screen with the calculator. Let me try to do that. Okay, so basically we talked about buying a $400,000 property for below the market. So you're actually buying a property worth $400,000 for 375. We then. So the property is 375, and let's say you took a 90% loan. So your loan amount is 337,500 and your interest rate currently is 0.05. You might want to buffer that and make it 7.5%. So your interest is around about 16,900 in interest per year. And we've talked about the $400,000 property and you did a renovation and we added $40,000 renovation, adding $80,000 in value. So we're talking about a $480,000 valued property. And we whacked on a 10% interest. So 10% capital growth over that one year period. So we've got the property now worth 530. And let's just take the median 4.5% yield that you get in the capital city for that property. So the rent is going to be 23,800 per year. And I always add in on costs. So I believe there's strata management fees, there might be agents fees, there might be. There's landlords insurance, there's potentially utilities, there's, you know, all of the building insurance. So I'd add on another 6,000. So we've got 16,900 plus the 6,000 as your costs. And remember, we had $23,000 in rent, so there's a mutually geared property. So, Lee, does that help you with that question? Hopefully she's going to type something in there that says yes. That's the answer I was after. So I just wanted to show you guys what that looked like. And yep, great. Fantastic. I love it when we answer questions. So that's Lee. Thank you for that question, Lee. Gee, talk about pulling some numbers out of the air and making that work. Were you impressed, Robbie? I was impressed too. We should pretend we're not impressed by things like that regulation. But that's the kind of general back of the envelope kind of numbers of how you can take a property that's seemingly worth $400,000 to a property that's worth a lot more. With renovation, using the Trident strategy, buying below the market, adding the growth into it. Now, that growth could take two years to get 10% right, but that's two years you've got mutually good property. You may not be able to buy below the market. But so it could be four years because you didn't have the virtue of buying $25,000 off. But that's how in four years you could get to the property paying for itself.

Yeah, that's great. And it's recorded too. So we can all go back over.

And do the calculation for Jane. Look, I'm going to pick up on. There's a couple of questions I got this week. Am I showing my screen? Yes. Hopefully you guys can see. Ready retina. Why does my say what? What does my savings allow me to buy? This was previously presented in the course as loan calculator. Let me just show you. I'm not going to show you where that is, but module two bonus. There's a thing that says loan calculator. I had a couple of questions. One from Con, one from Scott. Who are our resident Excel geniuses here and that they get straight into the Excel before they get into the videos of each module. And I'm living in constant fear of what they're going to come up with next, but secretly delighted that we can always improve what we are giving to you guys. Now, the value of this little calculator, which was considered to be the loan calculator, which I'm now calling just the property purchase Ready retina is that often when people haven't started and they don't know how much they can borrow and they don't want to go and see a bank or a mortgage broker and they're kind of like just geez, you know, I want to do my heat map but I don't want to be looking at properties that and getting really excited about properties of $500,000. But I can only afford 350, so I really need to know where I am. So this map previously, this Excel spreadsheet previously had 100% loans on it, had 95% loans on it. Guys, I've got to be really honest with you. 100% loans are just the only way you can do that is pulling equity from your property and 95% loans, although the banks will say that they're back into 95% loans, it is kind of like Jinx, four leaf clover kind of stuff and getting them through. And the thing is, as a renovator as well, if you've got a 95% loan and you're renovating and you're going back and you're asking for more money, you're really under the microscope and it's just a lot harder. So I've changed this to 90% and 80% loans. And I've tried to explain this is just an absolute ready reck now. And some of the people have come back and said, how did you calculate this kind of ready reckona thing? And so I've gone through a little bit of an explanation going for those who really want to know how this works, this is how it works. But for the rest of you, trust me. So basically, if you put in here your current savings is $50,000 and you're not getting any gifts and you're not going to be saving another 10,000 in the next two months or whatever, and I'm going to put in 7.5% as the general interest rate over the last 20 years. There's this calculation here. Everyone's come back and said, how are you dividing by 16? And essentially all I've done is said, well, look, we're talking about a 10% deposit because it's a 90% loan and an estimate of costs is 6%. Now, the reason I'm saying 6% is because if you add stamp duty in across the different states and the legal fees and everything, you don't want to know specifically what the number is for a $350,000 property. Because when you find out you really have a $380,000 purchasing power, you're going to go, oh, I got the numbers wrong. What this is is the back of the envelope ready reckoner. So what I've said is your Savings represent the 10% plus the 6%. You've got to get 16%. That represents the $50,000, represents the 16%, the cost you have to cover. And that is why basically it just divides. Then we'll click on this divides the 50,000 by the 16 and says, what's the kind of estimate? This is the back of an envelope thing, just in case you're more limited by what you can afford each month. That's why I put the monthly repayments in there. I've also included the mortgage insurance because some people don't want to pay mortgage insurance on top of their loans. It is the norm and if you wanted to, you could zero that out so that it, you know, it's not there, it's not capitalized. You know, I've got access to this in here that you can change anything, so you can make this your own. But I just want to give you a ready reckoner. This is assuming that you are not doing a renovation straight at all. This is like your heat map. This is just where do I start? So let's just say you have $100,000 of equity in another property, and in actual fact, you'd only do a cosmetic renovation and you want to do it straight away, you might change this and say, look, in actual fact, all of my funds have to represent. Have to represent the renovation happening as well. And I'm doing a cosmetic renovation. And a rule of thumb is 10%. You add your cost into being 16% there. And what that is going to do is it's going to actually say, well, the 100,000 is actually going to represent 16% of my. The costs are going to be 16%. So basically what they're going to do is it's going to go through and say, well, with the renovation as well, what's the property purchase that I can afford? So I hope that kind of assists you in. Here's my 16% up here. I hope that kind of assists you in. You know what? We were looking at 26%. So strike that, regroup. So if you're going to put in a 10% renovation as well, go in at the top and say, this represents 26%. So the 10% deposit, 6% costs, and the 10%, the renovation and the budget, that goes to 26%. If you're going to do a structural renovation, you might put in an extra 40. So all of a sudden your $100,000 comes down to what's that represent? Well, it represents me providing 46% of the costs. The costs are 40% for the structural renovation, the 6% for the stamp duty and legals and the 10%. So this guy is just that calculator. Same thing here. For an 80% loan, you might have $75,000. Or as we spoke to Faye, she might have $200,000. Now she's going to use all of those funds. She's not going to be using it to be the cash, but if she could take a loan out, then potentially she could have a $750,000 property. So that's kind of how that works. Hope that assists you. I'm going to be uploading that calculator a little bit later and just the website. So I think that should clarify things. People got a little bit confused. Okay, John, back to our main screen. Great. Who are the questions we've got? Okay, so I've got some other email questions. We've got a few minutes to go, so this is all good. I've got question from Scott. Do you know if it's possible to get a download of all the property data that appears in the back of the property magazines. Australian Property investor, for example. I'd like to have all the data downloaded into Excel for more specific analysis of medium prices, growth, gross yield or days in the market.

The Holy Grail.

The Holy Grail. Well, I've spoken to API and the answer is no. I've spoken to Residex and I think you can actually pay additional to download their data, but it's a bit of a fee. You can get the data downloaded electronically. I've known people who've done some innovative things which I couldn't endorse here on the webinar, but there's someone who's actually in the Renovator network who's put together a bit of a program as well and shared that over the last few months that people might want to have a look at. But the answer is you can't just download the back of the API magazine. Unfortunately, no.

You need to make friends with a tech geek that knows how to scrape things.

Yeah. For those of you who aren't tech geeks like me, that means ask that question on the Renovate network, maybe. But yeah, obviously the information is proprietary information that they have and they sell and get your spreadsheet out and your microscope really, don't you? Because it's really written small. And start transposing.

There's a kind of another way to do it, which is that you scan them in. I've got a little scan. You're not.

Let's do that.

Sorry, this is John and Jane's illegal podcast.

Let's not go anywhere with your little scanner. He scans it in and then you say, blow it up and then fill it in. Okay, well, I think this kind of picks up on a question that we've got here also from Kazia. Kezia, I'm not sure if you can jump on the microphone. Are you able to say, hi, Kezia, or you're at work and can't speak. Hey, Kasia. Okay, we're going to assume you can't speak. So her question is, when you analyse the survey, which data information is the most important? The quarterly, the 12 monthly, the annual? 3 years or 5 years? She can't speak. That's okay. We get this with lunchtime learning. People are sometimes sitting at work looking busy.

Yeah, that's right.

Eating their lunch. Kansia, when it comes to your dot map, which is really what our focus has been on module two, I would say 10 year growth, because as we had a question from Yana who said, what is considered a good 10 year average growth Figure as the suburbs I have selected so far are all under 5% for Sydney. You know, we do suggest that you do look as long term as possible. John Edwards says you should look 20 years. Unfortunately actually he has just started in his Residex report putting out the 20 year past growth. But we're talking past growth here. Residex only does five and eight year future growth and I think quarterly is just way too short because you're getting the, you know, maybe developments has come on sale or whatever. 12 months I think also has just got some more economic growth plays in it than anything else. So that 12 month annual growth I don't really look at. I start at the 10 year, I move back to the three year and then give you the 12 months. And that allows me, you know, if I had two suburbs that for 10 years they both had 5% growth, but I had one that had, you know, over three years, the last three years that had, you know, 20% and the other one had little. It tells me that the other one had its growth before that. So I can start working a bit of the story out. Kazi said that the property magazines only show five year growth, which is not correct. We've always been pulling Australian property investors, smart property investor and your investment property should all have 10 year growth in there. I mean I've been using that for years and pulling that information from there. So grab the 10 year growth. Some people look at that magazine and look at the spreadsheet and they get confused and think the 10 year growth is actually future growth predictions, it's actually past growth. There's nothing in the magazines unless you pull an article out that says the top five predictions for 2014, they're not going to give it.

When people are looking at their dot map, occasionally people have got confused with they're looking at the ones that have got the highest growth, whereas you're really looking at the ones that have got the lower growth relative to the suburbs that are around them. So they're yet to experience that 10 year growth.

And that's where that property plus calculator on my website investorschoice.com is really going to help you in showing that surrounding past growth information. But I really would be looking 10 years. And it pulls me onto Yana's question, which is she's as frustrated as most people looking in Sydney in the fact that she's got her what would you say criteria of maybe 1 to 5% and 5 to 7% and 7 to 10% and everything's less than 5. She's saying the whole maps red, you.

Know, you gotta look at that first.

Before you start mapping it out. You need to start looking at the things and deciding on your ranges is what I'm trying to say. So you might be talking 1 to 2, 2 to 3, 3 to 4, 4 to 5 because in Sydney you know, in some respects it has been low over a long period of time. So you might need to consider making your ranges smaller to reflect the nuances of the differences between the suburbs. Because remember if you are targeting Sydney, it's not a three hands in the air and go why give up? Because it didn't work. It's okay. How can I make this work? For the information I have it's going to happen in Melbourne soon and then it'll be Brisbane next year. So you're not alone in this. Will get to the stage where there will be similar for everyone who's going through this kind of thing and that is just change your ranges. Look at the ranges first for the properties in your spreadsheet that you're pulling up and then you do your dot map around that. But you're trying to target areas that haven't moved as much as the areas beside them that have a kind of a similar ish median price. And we're not talking about the areas that. Because I know when I spoke to Ben about Perth he was looking at one area and he said look, this hasn't moved but its medium value is 1.2 million.

Yeah.

So you just have to be a little bit more savvy about it.

Yeah, it'll be interesting to see. Do you happen to know when the valuer general info comes out for Sydney, the ten year growth?

No, I do know Melbourne's June, isn't it? June, July.

So it'll be interesting to see how Sydney changes or how all the states change actually with that 10 year growth number on it comes out the next time because having been so much movement particularly in Sydney and Melbourne.

Well, let's move on. Con's got a question that follows on to that saying. He's collating the 10 year average annual growth statistics for suburbs using three different information sources, RP Data, Australian Property monitors and Residex, which is essentially across the three different magazines in some cases I'm finding the differences between them are quite stark and I'm not sure which set of information to go with for the purpose of completing the dot map exercise. Depending on which information source you use, the map now shows slightly different conclusions. I know they use different methodologies in calculating the Price index and boy is that an interesting thing to get involved in. And there's a magazine article that came out last year that compared them all and showed you how they did all the different analysis in Australian Property Investor magazine. Is there one that you think is more reliable? Look, the reason that I talk Residex is because Residex is about properties that have sold in the past. Selling now where Australian property monitors and RP data in particular RP data backend all of their data directly from real estate agents sales. So if you've all of a sudden got a development or new properties coming on the market and the average unit value is 336 for the area, then all of a sudden they're buying these, selling these great off the plans. Well not the plans, completed properties at 450. Then that's going to give you that stark contrast where Residex, they won't take that new data into account until it's resold.

So a property is going to have sold once already before they'll include it. When it sells the second time, they'll then include that data.

Exactly. So what Residex does is. Seriously guys, there's pages of explanation around why one is better than the other and they argue it completely all the time. I had a sit down chat to Louis from SQM and he was telling me how he calculates his brain boggling, I got to tell you. But the thing I like about Residex is they say look, you bought this property in 1970 for $18,000 and you're selling it now in 2014. Then based on all the other properties that have sold that are also three bedroom houses in this street and in this area that we're looking at and how they have resold over this period of time, we estimate your property is now worth 850. And that's how they do it. They base it on the comparables of that type of property. So I hope that helps. And final question, Russell and Kimberly unfortunately can't be here. We've got a question. When we select our particular areas, is it preferable to purchase a house or unit? Is there an advantage for one over the other in the buy or hold or flip, buy and hold or flip houses versus units depending on the strat. I think we kind of covered this a little bit last week as well. Look, I don't personally think so. Obviously doing a structural renovation, which is generically what you're doing with a flip, I believe the house gives you more latitude to deliver value. I mean you do this, what do.

You reckon well, yeah, less hassles. You're not dealing with body corporates and all that kind of stuff.

So yeah, so there's that advantage. And also I think the land component of the house as well gives you the ability to, if you have kind of got a exit strategy, emergency exit strategy, which is I have to rent this place out. You've got some capital growth fundamentals in theory because you've selected the right area that's associated with land really goes up in value. And the house, really, the property is the thing that's depreciating going down in value. The buy and hold, I would have to say it's around what you're trying to achieve and where you're trying to achieve it. And if you're buying and holding in an area that has 50% or 60% renters next to a university and your buy and hold is a house, I'd be jumping onto census data and finding out predominantly what that demographic and I'm assuming that it would be a younger demographic and where they would like to live. Now I've got a property in Kingsford and very high rental demand, very high overseas population and they love brand new units. So by buying an older house, am I being strategic in actually catering to the majority of that demographic? So I think it really comes back to your research on the, the suburb as well and what they are after. And as you start going, you'll find this. We talked a bit about this last week in the goals. You don't need to define if you're a buy and hold or a flipping strategy right up now, but by doing this due diligence on the suburbs that you're looking at when we get into the street level, it is important because you're targeting owner occupiers for the flipper and you're targeting renters for the buy and hold. And we're going to give you some amazing resources on finding exactly what streets they live in. But when we're talking about where we are now, you will find yourself going in backwards. I mean, we might get to module 11, which is the structural renovation module, and you might go 9. Module 9, the structural renovation module 8 is the bang for the buck in cosmetics. And you might go, geez, I really didn't think that I could make these calculations work. But with the box at the back and the costs associated with it, I can. So you can go back and then you've got the experience with that heat nap. You can just look at it with a different set of eyes and you can look at the streets again and go, well, yeah, I could make this work. So it's really. I wouldn't be saying. I would normally say if you're going to do a structural renovation, which is a flip a house, I think is easier. Obviously the price point of getting into a unit helps. But as John said, dealing with body corporate and getting approval to make some structural changes can be hard. But going through council for a house can also be a bit difficult. But with the unit, you're usually looking at a lower price point. And I think we have had some conversations around the flipping. The numbers are so critical, guys, that you might be doing all this effort for $20,000 profit after capital gains tax and all your costs. And I don't think.

Yeah, and not a lot. Not a lot can go wrong if you only got a margin that small. But the example you used last week of the people that were flipping or the lady that's flipping units and to one target demographic of single mums, is that right?

No, single women. Professional.

Yeah. Okay. It's the same thing. She knows their demographic inside out. Same thing as the hold strategy.

Yeah. And Cookie cuts it every time.

Yeah, that's right. So she takes the risk out of it by knowing her numbers backwards and doing the same thing over and over again.

Yeah. So, Russell, I hope that helps you guys. Cassie has just confirmed for us that, yep. Your investment property does only do five years. Smart property investment does 10 years. And I can say API does 10 years, too.

Yeah.

Because they're the ones I usually use.

I use them too.

Yeah, you kind of get your favorites, don't you? But that's why, you know, talking about RP Data, Residex UP and APM and sqm, just you get to choose your favorites. And, you know, we want to show you all the information so you can choose what you want to use.

So.

Okay, I'm going to have to wrap things up. We've been going for a while and everyone's on their lunch break who are listening to this live and we don't want you to get in trouble. So thank you for the great questions. Once again, thank you to those who grabbed a microphone and can chat to us directly. If you have any further questions, please post them in the Facebook group. There are many experienced people there. Don't be shy. You know, harness the power of the group. You're going to see conversations going on about a huge amount of things there. Also, the audio recording of this call and all future calls will be available in the Facebook group.

Sorry, that's Wrong. It's actually just available in the bonus section.

So my mistake in the bonus section. The easiest way to find this is do it is to go to that module. This will change in the next couple of weeks. But at the moment at the bottom of module two tomorrow, within 24 hours.

We'Ll have this call up. So at the moment they're at the bottom of the bonus sections. We're actually going to make a new page for them that's to going, going to come up in the next week or two. So keep an eye out for that. We'll let you know.

And you know, as I said, if you disclose any information you don't want to make public on the calls to other people and you're kind of going oh my God, what am I done? Just let us know and we'll try to edit that out as soon as possible before the call goes up. But yeah, give us a heads up pretty quickly if that's you. Okay, one more big announcement. As I said, you know, we're getting, we're always improving stuff here. As of next week you'll have a 1300 number that you can call to leave us a question for the Q and A. So I will be replaying those. It's really simple. If you can't make it on the day, just call this free number, leave your question. It will be played as part of the Q and A call and answer live for you. You can hear it in the recording. Of course you can still submit written questions in advance but you know they're going to be at the bottom of my list. I'm going to chat to people live if I can grab a microphone, take the Q and A calls over the phone and if we get to them, they're written in. So look, this is another initiative, this is another reason why I am striving to make this the best course in Australia. And I'm going to get to you all the information about that next week. But look for the fast track ambassador survey tomorrow. We are so keen to give some hands on help to two special people and really trying to submit some of that success. As of Midnight tonight, Module 3 will be available and then the work continues on building the foundation of your property success. Module three is designed to show you exactly how to systematically research your short list suburbs based on the criteria of your chosen strategy. Then you're going to find out in which suburbs that you've selected, where the pockets of potential are. It's extremely important Module. I look forward to all of your questions next week. I nearly missed the questions this week. At 10 o' clock last night I was missing my connection flight from Auckland. I thought I was going to have to do a layover and potentially be at some issue. Yeah, trying to do this webinar today, but we made it. So I understand that sometimes you can make it, sometimes you can't. Be handy if I make it every time. But thank you so much for your contributions guys, and have a great week. Here's all to your property success and look forward to hearing your results next week.

See ya.