Q&A Mentor Call March 2022

Hello, hello, clubbers. Welcome to the end of March. And we've got through another month and 2022 is well in swing. And goodness, what a lot of things have been happening in the last four weeks. We've had floods, we've had war, we've got an election that is upcoming. There's been so many tragedies with Shane Warren, Senator, other people passing away as well, two young. So, yes, so many things that have been going on and gosh, you know, how do they affect us? Well, let me know that you are here and that you can hear me and I'm coming through loud and strong because I know that a lot of you have some questions and yeah, I think that we have lots of things to really discuss and to find out what is happening. So first of all, let's just check that we've got the tech under control and I'll go into my, my disclaimer that essentially says, gee, you know this after nine years of doing this monthly, that I am not an accountant, a financial planner. I'm not giving you specific advice. I'm just sharing with you the information that I have learned over my many years of investing. And you know, to let you know that last Thursday was the 21st anniversary, anniversary or birthday of the very first property that I purchased. And boy, did that make all the difference. So, yes, I've been doing this for a while now, seen a few property cycles and it's been an interesting, I guess, month. And yeah, I really would love to hear a little bit more about what you are up to and in particularly what is important to you and what would you like to hear about this month? So, so if we just go through and have a quick little look and I really encourage you to get into that, your property success club. There's a lot of people in there with a lot of information and really happy and wanting to be able to contribute and assist you. So please get in there and check it out. This month we've had people looking for someone to do their bathroom Geelong, we've had structural engineers. Now I'm in the midst of having a conversation with someone who is developing a platform that allows you to put together a team or contact, contact trusted, you know, people that you need to assist you out. And I'll be looking at that over the next week or so and just getting a gauge of how it could best serve you. But you know, keep that in mind. We're always here to try to help and to give you more information. Look, there's a lot of conversations been going on in the club. Someone's got a neighbor who has bamboo that's affecting their structural integrity of their properties. You know, we've got other people who are in there, you know, discussing, discussing the new legislation in Victoria. As a landlord, you may not know it. I didn't that by the mid March we were actually expected all to have heaters in the living areas of the properties that we have in Victoria. And they are suggesting that by next year it's going to have to be an air conditioner as well. So lots of, lots of extra costs and lots of information that's coming through. So as I said, please just jump in there and let me know that you can hear me. Not seeing any comments as yet, so I'm just going to check that. But yeah, as I said, there's so many things that are happening and I think it's really important for us to just be aware and mindful of what the effects are going to be. So yes, as much as our hearts go out to the people who are affected by the floods, a lot of other people are looking at this and saying, well, what's that mean to A, my investments in the area and B to my potential of buying in those areas as well. So having been a victim of floods and being through the Ningen floods and, and knowing how much that affects you and it's not just one, you know, news cycle. It is years of, you know, being able to regroup and get back on your feet and for those people who've lost that market gardens and their livelihoods, you know, this is a really big deal. So I really, you. My heart does go out to everyone who has been affected. So I've got a lot of information that I want to cover off and share with you this month. In addition, I see sue, you've got a question there about floods and particular areas in Brisbane. I'm going to come around to that after I've covered off a little bit of information on the floods because I think it's really important that we do look at that. But B, that we understand also how we are going to be able to, you know, be able to protect our assets in the future as well. So I'm just going to share my screen and bring over my PowerPoint presentation so that you guys can, yeah, have a look at, I guess some of the information that's been going on and, and look at how we can potentially in the future, you know, you know, protect ourselves against some of the additional things that are happening as well. So I'm going to jump into this. I'm just going to hide my face so you can't see me and I'm going to stop my video so hopefully you can still hear me. Let me know if you can't. But I just wanted to jump in and you know, first of all, cover off a few of the things that we've been talking about and what I've been up to. So. So this month I was fortunate enough to be asked to join the Todd Sloan from Pizza and Property podcast. You'll see the link below in the your property Success club. What's really interesting about this was that he had requested that we jump in and have a chat with three, three of us and he recorded our analysis separately. If you go and have a look at the podcast, there's actually a document that you can download. And I think the reason why this is so interesting is that when you actually have look at the document itself, just bring that over onto the screen so we don't go onto that. Where am I? Here I am. The actual pack itself was a really interesting way to actually run a podcast. So this is a property that is in the area of, in South Australia that is really an area that's kind of up and coming. This Hallett Cove. There's a lot of conversation about it. And you know, the reason I think this is interesting is that a lot of people are just going to jump straight into the property itself and look at some of the renovation opportunities. You know, the floor plan is. It has a plethora of ways that you can jump into it being completely unprepared. I actually only looked at this document about an hour before the presentation and you know, true to form with the way that I do assessments, you know, I looked at about 45 minutes of that was just looking at the location and looking at the feasibility of actually buying the property. So I think you might find that really interesting because. Because it gives you an idea of how three different people look at a property and it also gives you an idea of, I think in particular how you might consider looking at a property in the future, especially if renovation is the strategy and your go to strategy and one of the things that you want to consider. Michelle is known as the queen of budget renovations and she has some amazing ideas. Terry is someone. I'm not aware of Terry's work in the past or what he teaches, but apparently he takes three bedroom properties with one bathroom and turns them into four bedroom properties with two bathroom, which is possible in this floor plan. So it was really Interesting to hear that as well. And like me, he wouldn't have bought the property in the first place. The other things that I just wanted to make you aware of is, you know, you probably got my email as well. I know that there's a lot of people that are affected by the floods. There's some opportunities to share. This is one of the ladies. I reached out to some friends of mine in Lismore and said, is there somewhere on the ground that we can actually, you know, make sure that the money goes to a particular person or you know, to a particular group that is actually doing great. Amanda here lived in a granny flat behind a house that was also rented out. And she sacrificed her car and her house and goods and to help the old peoples out in front. And you know that she's got her own little Go Fund me campaign that she's running there. The other person, that group that I really thought was fantastic, obviously Red Cross and Salvos, the traditional was the give it group. And you know, you can actually go through and have a look at what people needed and some people actually have it and some people, you know, you can just give vouchers to people who are after things. So, you know, these are just a couple of the ways that I found interesting way to contribute and to help out those in need. And finally I wanted to share with you. My cousin has just finished a ride as well. So he was aiming to actually ride 1100 kilometers from Munich all the way to the Ukraine border. He did that over about 40 hours and to raise $50,000 for the Ukraine refugees. He is just smashing it. And as you can see, people are still actually donating today. He's a well known young up and coming cyclist and he kind of pondered the question, what can I do? All I know is how to ride. So he jumped on his bike and he's been riding ever since. So, you know, there's a lot of people out there that are doing some amazing things and I just wanted to bring your attention to it. But it does bring our attention to war. And obviously those people and what we've seen happening in the Ukraine is just devastating. And we think about the, the equivalent of, you know, one of our capital cities of refugees has just arrived in Poland is just incredible. It does have an effect on, on many things that we're facing as well. You know, if we just think of COVID over the last two years we've had distribution channel changes that have really affected getting of the goods that we need to build. And if you just look Here you know what a thousand dollars in June 2021 would buy you compared to January 2020. Now, if we now start throwing on what we would expect to see as the effect that comes through based on the $2 petrol prices that we're paying by June 2022, I think we'll probably have half of that again. Now it's important to note that there's a number of reasons that this is interesting for us and things that we need to be aware of. What we've seen in the last month is a number of major builders also go bust. Now a lot of the builders actually have a fixed price contract that they engage in. Now when their go up, obviously they're not going to make money and they may go backwards and then we're seeing some major bankruptcies. Just with my mentoring students. Yesterday afternoon on our weekly drop in, one of the students bought a, you know, a deal to consider that was a half completed, seven development, property development in a great suburb, you know, with a lot, a lot of upside. But the problem with that half finished type of property is that there's no warranty insurance. So for years to come you might be, you know, liable to, for actually fixing any of the mistakes that come up or problems that come up and that could eat up your profit very, very quickly. But the other thing that's really important is that getting another builder to take over someone else's building and then taking responsibility for that, it's really hard in itself. So there might be what seems to be opportunity comes up with these kind of situations and there might be half completed, you know, houses or developments done. But just be aware of the bigger picture and be aware of the fact that, you know, a lot of building contractors are going to be in a lot of trouble. So if you do have a building contract, you know, get on your front foot and have conversations about that, it does mean as renovators as well that costs may go up for us. So one of my mentoring students who settled on a property, and she settled on property last Monday and managed to do her renovation within the five days and has had at least this week, you know, just the initial budget that we looked at for the joinery and electrician and plumber increased. So, you know, that became quite an extent to 50% of actually, you know, her small, kind of very quick cosmetic do up. So just be aware of these things. This is something that you need to take into account. If, you know, renovations part of your strategy, then actually getting the trades and what they're charging could actually Change quite considerably. So other things that are happening, you know, the economy has kind of faced this consumer confidence drop now. This is, you know, being one of the things that I kind of watch each week is the Anz. Roy Morgan, Consumer confidence, you know, we're starting to drop now below where we were in September 2020. Now, as you remember, you know, things are pretty bleak way back then. So, you know, this is kind of getting to the point where we just need to be mindful of this. We've got floods and impacts of floods. We've got the uncertainty of war, we've got the electricity, we've got diesel prices going up and petrol prices going up. We've got distribution problems. There's food, you know, distribution issues as well, and some goods. So there's a number of things that are creating a bit of angst in people's lives and I think we need to be very mindful of this. But also we've got an election coming up and we know traditionally the month before election pretty much no one sells anything. So a lot of people are racing to sell property at the moment and get it on the market. And the other thing is that we've got Easter in the middle of that, so it's going to be a kind of let's wait till after Easter and after the election and see what happens. So I don't see the consumer confidence going up a lot in the. In the meantime, but that also means that there's opportunity out there. So I think, you know, as a community, we know often when others are fearful, then there's opportunity. And, you know, to quote Warren Buffett paraphrasing, that's really where there is a place for us at the moment to be wary but be mindful of what's going on. So let's just look at the market, you know, hide my face so you can actually see these things. It's really interesting. And looking at where the market has been, there has been a slight downturn, as you can see there in the results or information that's come out the beginning of March from RP Data. Having said that, you know, Australia overall has had a 20% growth in their property prices. Now, to put that into perspective, in Sydney in the last year, your property was making like $1,100 a day. So that's just like incredible, right? So, you know, in, in the sense for the medium, based on the medium property price. But this kind of growth is unprecedented. And I remember having conversations with people over the last, I don't know, 15 years of teaching property education where they say, have a, have a look at the seven year growth that a lot of average growth over 10 to 20 years that a lot of property educators use. Like, you know, seven is completely out of the realm of possibility. And here we are looking at 20%, you know, and the year before, you know, amazing growth. So, you know, just be mindful of the fact that this is exactly, you know, where we are at the moment and we're actually in an incredible place position market has turned a little bit. So you know, let's monitor that and I think that consumer index that we just looked at is plays part of that also. You know, I've said this before, it's one of the things that I look at and it's one of the things that I try to be mindful of is actually looking at where the market is. And you know, when I'm looking at the market, often what I see is the top end of the market moves first and then the rest of the market comes through. So when I start seeing the top end of the market going down in comparison to the mid market and the lower end of the market, it gives me a kind of an indication that the market is changing. So I just want you to be aware of that. Watch it. It's a premise that I'm, you know, developing and working on. It may or may not be true. So I'm interested in actually looking at how we might be able to monitor that or prove this up as a concept in the future. So let's have a look at that. And I see that there's some questions coming through as well. So yes, I will get onto that kitchen question. So we'll get onto that in a moment. So let's just push on through and have a look at some of the sales data. I think it's really important when we look at the national sales that we see that we're actually at the moment seeing volumes of sales still going up. There's a lot of transactions, but they are a hangover. So when I look at the listings compared to where they have been in previous years, the listings are actually lower as well. When we have a lot of sales and we have less listings, usually we can make some correlation to the market. When we have less listings over a period of time and the sales start taking up those listings, then there might become a little bit of desperation and FOMO and prices go up. So I think in light of the consumer confidence that we're talking about, we may not see that for some time though. What is interesting is that our rental rates are just going down, up. And what's the weirdest thing is that we still don't have really the borders open to the full capacity. So when I'm looking at these numbers and wondering who was buying all these houses in the last two years and it seems to be people who are upgrading homes and the first home buyers before they were exited from the market due to price is this now people who are more comfortable in moving back from the regions because the youth have been staying in the regions for a longer period of time and moving to the cities and this is driving up the prices of rents. So you know, when we think that immigration and the floodgates will be opening over the next six months or so, I really think that there's going to be a lot of shortages of rent and we're going to see those vacancy rates climb. And you know, when we're looking at some of the bigger pictures as well, you know, we're looking at the market kind of lead indicators and that's where we want to be. We want to look at lead indicators rather than lag indicators and lag indicators of these things like clearance rates. So clearance rates for me are kind of like, you know, someone last September, October, wanted to list their house, had a chat to the real estate agents, he said, you know, wait till January. They started putting the property marketing in January, February and now they're just selling. So you know, I think that this is really information about what was happening six months ago just on to rent. This is from the most recent Propertyology newsletter where he looked at the two year changed advertised rent, three bedroom houses. And as you can see there's been some significant changes in rent that have come through, you know, 20, up to 20, 30% in some of those regional areas as well. So you know, bear in mind if you have a rental property at the moment, having a conversation with your real estate agent about potentially looking at that would be good. As we can see, you know, property market has, you know, been moving quite considerably. Brisbane over the year has had an incredible growth and followed by Adelaide. I think it'd be justified to say it was there time to have some movement, having not had some movement for so much time. Brisbane obviously has had the floods and obviously the northern New South Wales as well. This will affect them and I'll get to that in a moment. But Adelaide, you know, is almost like the Silicon Valley of Australia. Australia at the moment. We've had Google, we've got, you know, Elon Musk's over there. You know, there's a lot of great big tech areas that are opening up in Adelaide. And you know, I know also speaking to immigration lawyers, that Adelaide is considered regional, as is Canberra. And to get your permanent residency you need a number of points and you get a certain number of points for going to the region. So I was talking to an immigration lawyer just this morning and we were talking about, you know, this kind of permanent residency point system and he pointed out to me that there's suburbs in, you know, even 20, 30 kms from Penrith, like Windsor, that are considered regional. There's suburbs in the west of Melbourne, 20ks away that are considered regional. And investing in those areas, although they're not the investment grade areas that I have done analysis on, investing in those areas is interesting because if those people go and work and live there, then they get points towards a permanent residency. So there may be some rental markets that have for no other reason than the fact that immigrants are going to be able to get their PR quicker, that we're going to see an even quicker or higher increase in rent. So just want to make you aware of some of the little nuances and patterns and things, things that I see. Let me just jump over this. This is from buy side buyers, agents, great guys, lots of really good information. I put up last month's information here and this month just to give you a little bit of a comparison of, you know, what's happening. It's kind of nice to see, for instance, unemployment coming down. It's great to see vacancy rates coming down. Now just keep in mind when we talk about vacancy rates, vacancy rates are usually considered to be in equilibrium if they're at 3%. So there is many people looking to rent as there are people trying to rent properties. So above 3% always causes us a bit of concern. Now my analysis and how I've been working with my mentoring students over the last two years in particular has been, you know, so let's not throw the baby out with a bathwater. We know looking at the pain and gain reports that established houses in capital cities make more money than units and make more money than properties in the regions. So why not just go with what works? Having said that, when we were getting vacancy rates in Sydney and Melbourne at 5%, it really was hard to kind of hold firm. And when we were looking at the Bristol market, well, and knowing that, you know, where immigration was going to be leading people was mainly to the capital cities with the most work population. And traditionally that's been Sydney And Melbourne, you know, I was open to looking at Brisbane, the Brisbane market with the idea of the capital growth and long term kind of attributes of investing that we look at. I think that the flooding has changed that a bit. But you know, when we talk about hold firm, it was really looking at these vacancy rates as a minute part of a long term hold. So, you know, a couple of years of long term and I'm happy to see that these vacancy rates have come down and that rents are going up. So this is kind of correlating as well in what we've seen. And you know, the other thing is that as I said, you know, lag indicators etc around auction rates, I'm not really concerned about. But it does give us a kind of what's happening in the market at the moment. We just had a look at the Heron. Todd White and I encourage everyone to go and get this newsletter. They've got thousands of valuers out there every single day valuing properties around Australia. Their newsletter gives incredible insight and in particular, you know, I think there's like 40% of the valuations they do are actually for sale, 60% are for banks to do refinances. So they're actually seeing a whole lot more properties than you know and have a whole lot more insight than you know. We're just getting, looking at the properties that are transacting every week. So what's interesting here, you know, we've had Hobart that has basically changed its position from last month. It's been in a rising market, it's now approaching the peak and you know, we've got the peak of the market, Melbourne's approaching the peak to the peak. So, you know, there is some more downside experiencing there. So let's talk floods because I know that there has been questions about floods that have been coming through and I'm just going to have a look at the questions for the moment and see if. So we've got sue here who says, I'd like to ask a question for our discussion. Jane, what are your thoughts moving forward into Southeast Queensland? In particular Redcliffe in North Brisbane in the light of Melbourne and Sydney slowing down? Well, yes, Melbourne and Sydney seem to be slowing down and there really is, you know, all the information has led us to see that we also are moving in, I believe, as a nation into that low confidence. The wage growth is something that is on the table. Inflation is increasing, even though the RBA has been telling us that inflation is increasing due to mainly those distribution, diesel, petrol prices and the associated costs of goods that are associated with that. My mother in law told me yesterday that in New Zealand a cabbage is $16. Like how low already? But if you like cabbages. But you know, this amazing to see, you know what the effect that these distribution costs and now the higher cost due to the war is having on the fuel. Yes, the government's talking about, you know, reducing the fuel excise tax, etc. But there's not going to be a lot of really relief. And you know, it'd be interesting to see how the Liberals and Labor governments really peg this election and what their one platform will be, whether it'll be security or whether it'll be something around your wage growth and abundance for Australians. So waiting to see where they pegged that at the moment. But obviously everyone's trying to get over the floods and everything else that's going on. So let's talk about the floods. And so in particular your question about that North Queensland area or Southeast Queensland, north Brisbane area. You know, just looking at Eliza Owen from CoreLogic, she's done this fantastic article. Now for those of you who are not a member of pipa, pipa, that's the Property Investors Group, you know, I think it's like $5 a year for membership. They have incredible webinars, you know, amazing people who are part of it. This is, is their magazine that came out yesterday. I've just pulled these graphs out. But one of the interesting things is that they're talking about is the change in dwelling prices of the Brisbane suburbs post the January 2011 floods. And if we just look at that, you know, we can see that there really was a long period of time before those Brisbane suburbs affected by the floods took to come back. Now if we have a look here, you know these, this is greater Brisbane. The dark blue line here I'm sure you can see. And here are the suburbs that were affected by the floods. As you can see, you know, they really took a hiding. And so I think it's really important that we're aware and I've got a link here, but we're aware of where those flooding planes are. And you know, this is the Brisbane City Council flooding plan. I've been trying to get a picture of the suburbs that are affected as a big map and if anyone can find one, please post it in to the area that we're into the club so that we can all have a look at it. But you can see here, you know, here's a. The dark blue is like high likelihood of floods. Medium is like. Yeah, you know it's got a medium likelihood down to low. And the fact is that, you know, we've now had the once in 300 year floods that have affected the area as well. So sue, you know what I would encourage anyone who's buying in the Brisbane market and looking in the Brisbane market is that you really be very mindful of the fact that there is, you know, the potential for future floods. Now I'm just going to show you a report from Michael Matusik as well that I think is really interesting and bears mention. But you know, we look in that Red Cliff area. My goodness, where's my Red Cliff area? I'm going to bring over my dot map just so that I can bring it up. So if I look at the Redcliffe area, so we're up here near the Deception Bay when we're going north up here. For anyone who doesn't know Brisbane very well, up here, up here and over in the Red Cliff area. So you know, I think that in, in light of Sue's question, you know, this area up here to my knowledge has not had that really affected. Where are you? Redcliffe? Sandgate? We're a bit further. Here we go over here. Haven't really had that affected area because it's really kind of coastal that we would see in the effect of the flooding. But what is really interesting is that, you know, if we could put the floods over this bigger map and this is my digital dot map just for those who were interested, but if we could put all of those flooded areas over here, it really does lead me to think that there's some concern about buying in those suburbs. And looking at some of Michael Matusik's information, he does indicate that buying outside of those areas there might be an upside to the suburbs that aren't affected by flooding but for a short period of time. So sue, particularly your question is, geez, you know, with all these people leaving Sydney and Melbourne and all of the boost in the Brisbane market and now with Sydney and Melbourne property price prices coming off, you know, are these areas areas that could continue to have some growth opportunity not affected by flooding? A lot of people can now work from home and refusing to work from work in actual fact. So these areas that might be a little bit more lifestyle but still commutable, I think they're still going to have some growth opportunities. However, let's be mindful of the fact that even though some of these suburbs have not been affected by the, the floods they will have, there will be an economic effect that will be Due to the fact that there's going to be cleanup and years worth of pain going on here and potentially even, you know, just simple things, you know, insurance premiums going up. So I really encourage those people who are looking at, you know, investing in these areas or have an investment in this area. Check out the information that's available to you and make sure that, you know, you are getting the right type of information. This is from Eliza. So she's saying that the fact that the 2011 floods came through and then the market went up, she actually has some concerns about the fact that there were other things that were hoisting that market or boosting that market. Cash rate came down. If we do see wage rises and if immigration does go where we think it's going to go and a lot of people are going to come in, there is no reason to think there'll be wage rises because there will be a lot of people to take up the jobs. But there could be the move for the cash rate to go up. So where in 2011 there was a length of time that it took for these suburbs to come back, in 2022, there might actually be longer for them to come back because there could be a cash rate or interest rate rise that could hamper the spirits. This is what Michael Matusik looked like, looked at. You know, I think it's really important for us, as, you know, researchers, let's just say, and detectives in trying to find where to buy and how to buy and how to maintain our investments, that we look at multiple sources of information. So, you know, this is really interesting where he's actually looked at the dry versus the flooded suburbs over that 2011-2016 time frame, and you can see, you know, the dry suburbs took 21 months to recover. The flooded suburbs, 54 months. Throw in an interest rate rise and an election and a lack of confidence and higher costs of living associated with distribution costs and fuel, then, you know, this could be a whole lot longer. So I'd be really mindful and cautionary about moving into some of those areas that could be considered flooded. And this is his thoughts on going forward. Brisbane's housing market has been peaked. It's likely to enter a mild downturn. Sales volumes should start falling. So let's watch those volumes. And the listings are probably going to increase. So they were the two measures that we looked at a little earlier. The price points in general across Brisbane are now likely to stagnate and they're likely to remain flat for at least three to five years. There May be some price growth left in the dry suburbs but it'll be mild and short lived. Maybe 5% match in the next 6 to 12 months. So this is really different to what we saw as last month even when pre flooding. So you know, just be aware that there are, you know these things that we need to be aware of and we need to be I guess the, the word is flexible in, in where we're looking. You know I've always kind of been the low risk investor and looked low risk. So before I go into my rise of the regions conversation and check that out, I see that there has been a question that has come through. Let me have a look. Where did it go? Regarding something. Where did you go Raoul about color schemes. So I'm not sure why I can't see it all. But here's the question that has been posed. So let me just check this out. So Raoul says hi Jane, I'd love to ask a question regarding kitchens. We've got a kitchen Renault at the moment for a rental investment property for a long term hold. We're going for IKEA flat pack. We are debating whether to go for dark gray versus matte white. Wondering if white would be difficult to maintain cleanly. This is the dark gray and this is the white. Hi Jane. Another quick one was regarding color schemes. We are getting the entire house painted and it has timber flooring. We want to be quite minimal in our investment. Wondering if we could with Antique White USA for all rooms, antique white gloss for the trims. Do you typically recommend another color for the ceiling or we're going. Could we do antique white for all. And another quick question on colors. Oh, color scheme questions today. Coming thick and fast. Love to get your opinion if antique White USA would work externally for the windows for these two as we're getting them repainted. Sorry if they're all too specific. No, not at all. That's what we're here for. So here's the thing. When we're looking at. I'm just going to have to work out how I can send myself these links to your color schemes. First and foremostly I'm going to have a look at this and you guys aren't going to see it. I'm looking at the IKEA links. You can check them out a little earlier. I've used IKEA flat pack kitchens. I used them before. They went from like a 5 mil width to like a 3 mil width and you know they've stood the test of time. The only thing I would tell you about Ikea kitchens that you just need to be observant for is everything is a set dimension. So often you're going to have to just buy some extra planks to fill in maybe where the walls aren't completely straight, etc. I've always, I like the gray, it's nice but it's a color scheme that you really, you're setting the time for the property. In my experience I'm always to like blank canvas, go white with the kitchen, allow them to do the pop of colors. It'll be easier for you to match colors in the future. I've just had a property inspection done for one of the houses I have in the eastern suburb Sydney and and the custom made kitchen door came off and the tenant put it outside and water damage has gone into it and all we needed to do if they'd given us notice was just come in and put it back in. Now we have to get a whole new kitchen door and if it was white, great. But these colour schemes I see change over a period of time. So my concern would be that your grey is not around when you have this kind of tenant issue in 10 years time. Antique White USA I really like Antique White USA because you know it's, it's a. It gives you a color that is fresh and clean and I've been using it for 20 years and you know, it's just, it's not obnoxious. You're not going to have tenants or buyers actually take aversion to it. I find it really, you know, as I said, a clean, fresh color. I would normally have the ceilings white so you've got that kind of start cleaners and, and yeah, obviously a gloss on the trims is what you need to do just for the wear and tear areas. You may want to, you know, do those wide as well and to make them a bit featurey but it's not necessary to do that. I do like antique white with butcher floorboards and the other question is, would you leave it use the same outside? I've never used antique white outside and I have no rhyme or reason to that other than I can't recall the last time that I did repaint the windows. Often people try to trim it with the colorbond color that's on the roof and I do like the darker color schemes in the house facades and I like those because I think it just gives us a more of an establish and a presence. However, you know, you don't want to be the house that really stands out in the street. So I Drive around and have a look what others are doing. I have no opinion about using antique white outside. It's just not something I have done and not something that I would. I'd recommend. I think it'd be more. More traditional to actually probably match it to your fence or to your roof. And I think you put a picture in that shows me that you don't have a colourbond roof. So let me just have a look at that. Maybe the trim on the gutters, you could do it. But yeah, I wouldn't. I'd actually have a chat to your painter and just. And. Or unless you're painting it, you could possibly even use a Dulux color consultant. I know that their, their fees have always been traditionally redeemable over if you buy Dulux paint. So, you know, just check that out because I think it's really important that we have a look at that and, and to see what suits your area. But I wouldn't, you know, for me, if you make a statement, like if you've got that dark brick and that dark tiled roof, then you know, a lighter color will make quite a statement. And. But it could also be very obvious too, in that kind of background that it could be flaking off or could be dirty. So, you know, I think I'd probably tend towards the darker colors and usually if that's a colorful color that probably, you know, potentially could match your guttering or your fence. So, yeah, just check that out. But I'd speak to a color consultant about that. I hope that helps. Okay, so let's jump back into this conversation. As you know, I'm like scaredy cat, low risk. It's done well for me. It's done well for ten thousands. Yeah, thousands and thousands. Over ten thousands of. Of all my students that have been through my courses and community over the last 15 years. And, you know, I really think around being flexible and looking at the information. Working on premises and a premise is not a rule or an obligation. It's something that is being set up scientifically to either prove right or wrong. And when I look at the premises of my property investing, I'm kind of looking at the fact that, you know, established houses in capital cities or major regional areas have been the ones that have gone up in value the most. And for my clients, you know, and for my students and for the community that I serve, you know, I want to be able to de. Risk for you as much as possible your property investing journey by the typical property in an area that is going up in value with pricing Pressure, population pressure, where people want to live and you know, get on with your life. You know, it doesn't. Property investing shouldn't be an active sport. It's something that's active whilst you're looking for it, but once you've done it, park it and forget it. And you know, obviously the Trident strategy talks about three ways of making white money. The way that I have always traditionally added a higher and better value is through renovation, getting $2 back for every $1. And if you have any questions or queries or you're new to the community and not part of the ultimate guide or renovation course, have a look at that podcast with property and pizza and three different people talk about renovations and see how we think about how renovations can be done. So I think that's a really valuable lesson. But other people take a property to hire better value by looking at the backyard and going, I can subdivide this and sell off the back or I could develop this, or I could put a granny flat out the back or I could change the floor plan and make this a multi living area. So you know, around putting that higher and better value. There's a lot of techniques in doing it. I tend away from the ones. And we had this conversation my mentoring group yesterday. You know, there's, you know, ndis, this high rental return for properties that are purpose built for people who have, I'm going to say physical needs, but NDIS also serves people with mental requirements needs as well so they don't have to have that high end build. So there's a different ranges of NDIs and I've done lots and lots of research on this and I can't find anywhere and talking to government groups where they will actually endorse your build and say we're going to take it before you've built it. You kind of have to build it and get their agreement, which can take three to six months, in which case you possibly can't rent that property out. And then if they do take it, how long is that agreement for? So I always look at the new ways or new ideas or new information that helps me break my premises. And one of my premises is based on the data over the last 20, 30 years that capital growth is majority generated where people need to work and that is in the cities. So I've been watching this rise of the regions with one eye kind of thinking, okay, is it time for that lower price point to move out of the regional kind of satellite cities, the Geelongs, Ballarat's Bendigos, Wollongongs, Newcastle, Central Coast, Sunshine Coast, Gold coast kind of areas. And you know, look at some of the, you know, look at the more regional areas. So we've heard about the rise of the regions. You know, it's across all of the media. You know, I've had my doubts having lived in a lot of country towns, Doo, Camden, Singleton, Mudgy Budgie Boy, you know, over the years, I, you know, I am not sure that this rise of the regions was something that was sustainable as I wasn't sure that, you know, those high vacancy rates that we saw in Sydney, Melbourne meant that those areas were completely off the table and not something that we should look at as well. So I was interested in reading, including once again, Michael Matusik's report this week where he said the same thing. He's essentially saying that here's the data for 2019, 2020 and 2021. And as you can see, 45,000 people moved to the regional centers. And bear in mind the regional centers are also including Sunshine Coast, Gold Coast, Newcastle, Wollongong, I think Blue Mountains is the greater, Greater Sydney, Geelong, all of those areas, they're considered regional, right? So 44,000 people move there, 23, 26 the year before. So really only like a 20,000 differential. So bear in mind that, you know, we're really, we're not talking about 44,000 new people moved. There was a 20,000 net internal migration. So very interesting. And yes, Sydney and Melbourne, big on that. So they all left. And you know, Brisbane's as we know, population grew in that period of time. So it was interesting to kind of, to look at that the regional areas, you know, obviously grew in these things. But he has doubts and I tend to agree that, you know, when we start digging into the data, when we look at it, you'll see here that the net migration to regional Australia, you know, did start climbing and you know, was coming down 20, 21 post Covid, really settled in. When people can get out of lockdown, they moved. So we do know that there was that moving. But when we have a look at this information, what I think is particularly interesting in this is that we get to see that the age groups of people moving now, you know, we all are hearing that the millennials of up and left, millennials, 25 to 44 year olds and up and left, you know, and if you have a Look at this, 45 to 64 year olds of up and left as well. So we're really getting this, you know, boom within this older age group. And if we have a look at what Michael says. He said much have been made of that 14,000 of the millennials that appear to have moved in the last 12 months. This volume has doubled during the pandemic, yet just makes up 32% of the overall internal regional migration. However, remember that migration is a net result. It involves people arriving to and people departing. So here's the interesting thing. When factoring in arrivals and departures, you find that whilst the number of incidents incoming millennials has lifted by about 5,000 to the regional areas last 12 months, the number of the similar age residents that didn't leave was 10,000. So what's this mean? These people came in? Yes. So an extra 5,000 came in compared to the year before. But people didn't leave. Why didn't they leave? Because there was no jobs and we're all in lockdown. They're not going to move to the city. And that younger DID group are the ones who usually move to the city. So, you know, we didn't have overseas residents coming, coming in. You know, we've got travel restrictions, you know, they're essentially stuck in the regions. We know that a lot of, you know, hospitality workers went home to mum and dad. So, you know, I think what is really here is that, you know, when we look at the big picture and look at the what is really happening, we look at this kind of regional departures over a period from 2016 and this is the gray line. Regional arrivals was increasing, started to decrease and obviously it's moving up, but not at the same trajectory at this stage. This is the regional departures. So we also see the departures were going up, but they're coming down. And I think this is the biggest story that we need to have. And as you said, here lies the problem. Many who would normally have left the regional towns. Yep. The young folk haven't. And overseas locations and capital cities offer much more in the way of job opportunities and wider social contact, yada, yada. So, you know, once all the travel restrictions are off, the millennials might take off, they may not go back to the city, they might go overseas. But. But bear in mind, you know, a lot of people who have moved to the regional areas, you know, I'm hearing about people wanting to come back, you know, that didn't have the lifestyle or the connection or the community that they expected. So, you know, a couple of things there that I think we need to be, you know, really mindful of. There are some changes afoot. There are, you know, some things that, you know, when we look at the regions, we have seen incredible growth in the regions and there's no doubt about that. But what we've also seen is that there's starting to be that leakage back to the cities. We're starting to get pricing pressure on our rents. And where are those people coming from? Because we know that haven't started coming from overseas. So maybe that's the first home buyers who have given up the hope of being a first home buyer and just upgrading their rental property. Maybe it's the fact that we did have a lot of first home buyers in 2020, 2021 move into the home space and free up their rental properties and take away properties that were maybe investment properties because there was investors who were worried about their investments. So, you know, there's been this exchange. But bear in mind we've got possibly $200,000 people who will be heading to Australia in the next year and more. And you know, it's probably going to be coming up in the election. So I think that, you know, we need to be mindful of that. It does bear the question where to buy. And you know, I've had more and more conversations with people about where to buy. I have a service where you can have a strategy call with me and we can, we can have that conversation. But you know, more and more when I look at what's happening in the market and I have a look at where we are and the opportunity that we have ahead of us, nothing's really changed in, you know, as the editor of Money magazine used to tell me, I'm meat and potatoes. You know, nothing's really different. I think the market is, has some legs in it yet. I still think that Brisbane might now, you know, have, you have to be wary moving into that Brisbane market. Immigration will open, people move to where the jobs are, the jobs of Sydney and Melbourne. So, yeah, show spider webs too. Yes, the comment has just come through and I bet you you're talking about painting the external colors being light as opposed to spider webs in the regions. So, yeah, guys, we've got a, we've got an expert person here who is a painter. I've been painting for 30 years. White on exterior gets dirty very quickly and shows spiderwebs too. So yeah, I'd be less likely to put color, white color or light color on those external finishes. And now we've got someone with 30 years of experience of painting who has confirmed that that's the right way to go. So as I said, I talked about to your painting experts they're out there doing this every day and they're getting information in the sense I've got so much intellectual property, you know, they're getting the callbacks for someone who wants them to repaint it every five years as opposed to 10 years or 15 or 20 years based on maybe colors or products. So just be aware, you know, that they're. They're professionals for a reason. So, wow, three minutes to go. I'm not seeing any more questions coming through. I do really appreciate everyone sending through the questions. Sue, I hope I helped you out with that analysis of that Red Cliff area. It really has been an interesting period over the last month and can show you how quickly things change. As I said, I was very much on being a bit of skeptic on the Brisbane market continuing to have the growth and with, you know, all of the buoyancies of it, I kind of changed the tune and we started looking at some of those suburbs with growth opportunities. As I said, some of my mentoring students have been buying in Brisbane, not in flat suburbs, but it has been something that, you know, I was moving, moving to, especially from affordability point of view. Let's face it, you know, you can't get properties at 550,000 8km from town in Sydney and Melbourne, even in Geelong, for instance, or Newcastle. But, you know, there's. There's a lot of. There was a lot of reasons to like Brisbane. The floods have really thrown a big spinner in the works there. And. And I really think that we need to be mindful of that. There are suburbs that will still have some growth, but there will be an ongoing economic effect of having to recover and improve those areas. And, you know, obviously hearts go out to the people who have been affected by the floods because I know personally how, you know, how long it takes to get over that. And it's not just one news cycle where we get to watch it on the news every night for a few weeks. This will affect people for years and years to come, not just economically but mentally and emotionally as well. So we need to be mindful of that. And, you know, I think we're going to see more pricing pressure on our rents go up. I don't believe we're going to have wage growth that will stimulate, you know, those early inflationary calls for the RBA to put up their interest rates because we're going to have people coming in and start taking the jobs. But we have got in, you know, I think artificial inflation at the moment that's driven and by the distribution costs that have made our goods more expensive. So let's wait and see where that turns up. And you know, as always, we're here to support you. I'm here to support you in the club, but the community's here to support you as well. So if you're a new member, if you are someone in the ultimate Guide to Renovation course or the location masterclass course, or, you know, you've just, you know, joined through your property success club and made a donation, we're so very grateful. We're pushing up towards our $30,000 donation target now that we've pushed through. The 20,000 kids helpline are just so very, very grateful and their services are in more need than ever in these days when there's kids and affected by not just the floods, but, you know, the images of war, et cetera, that they're seeing online. And a lot of them are having issues going back to, to school, having been in lockdown for over two years as well. So anyhow, I think that, you know, we've, we are moving into a area of low confidence and I still think that interest rates won't be going up soon. But I know that banking experts that are economists are talking about August. So, you know, if you are going to be looking at, needing to, you know, potentially look at your interest rates, et cetera, you know, obviously we're here to help you with that as well. And investors choice, just check out investorschoice.com I've got even more people joining my team at the moment as senior mortgage brokers. I'm really excited to have them come along and yeah, here to help. But as always, as you know, we are really committed as a community supporting each other. If you have any questions or needs, drop them in and next month, you know, come along and ask questions and I hope that I can answer them again for you. So I hope this has given you a bit of a understanding of what's happening in the market. My impressions of it, don't take my word for it. Go out and do your own homework and get multiple data sources so that you can actually build up your own intelligence and market strategies. Anyhow, until next time, here is to your property success. Bye for now.