Q&A Mentor Call - September 2022

Hello. Hello, everyone. It is Jane and it is October. Can you believe it? I am sitting here at home and I'm about to go live with you guys and I just want to make sure that people can see me and hear me. So let me know that I am coming through strong and that you can see my save screen and that you can hear me. So just checking right at the moment that we are coming through strong and when we have that, we can go. Okay, well, hello, everyone, and I hope that you can see me. As you can probably see, I am sitting at home in a bit of an impromptu studio at the moment. I have just flying back in from Los Angeles where I have been in attendance of an amazing retreat with my mentor and an Incredible group of 30 people from around Australia and the world. So people flew in from England and Portugal and Germany and South America. So all very, very exciting. And I thought I would be back in the office by now, but fortunately that has not been the case because I have a sick son. So, yes. Hey, Julie, great to see you and thank you everyone who is joining and for all of those which I know there are many of you who actually watch this in recording now. What an amazing month this has been. You know, I appreciate you guys allowing me to push this meeting back a week. Normally the September meeting would happen in September, the last Thursday of September. And as you know, we've. I've been doing this for monthly for the last 10 years now. So a lot of things this month. I admit I've been away for a couple of weeks and you don't get a lot of Australian news overseas. But it's been interesting to see that there has been quite a few developments and the conversation is exactly how it was before. And, you know, it's. It's interesting, you know, really to see where we are in position to the rest of the world. So if anyone has any questions, just remember, you know, type them in and they will appear and I will get onto them. I know that there's been a lot of people doing a lot of projects this month. Super Susie, who we've been following the purchase of her property and now the renovation is in full swing, renovation mode. And she's going to attend this call next month and give us an update on how that renovation's been going, the trials, the tribulations, the plans. There's been a lot of collective input from the group on color schemes and her bathroom. So I really look forward to seeing that end result for her. And as I said, you know, I've Been with my mentor over the last 10 days in California, about three and a half hours north of LA in an area called Sequoia National Park. So hanging out with bears, swimming in the river and spending two or three hours a day with my mentor and an incredible group of people looking at the end result of things that we are trying to contribute to the world and bring to life. And I have to say, just taking time out and a lot of people have just been on school holidays now and actually reflecting on what you're trying to create and reflecting on the things that you are working on at the moment and your big plans is such a great thing to do. And I know speaking to a lot of people over the last month and doing a lot of finance discovery calls that there is a lot of confusion in the market. And just the conversations I've had with people about, you know, sitting back and waiting to see what happens in the market is, is a very common theme at the moment. And it's interesting, you know, just, you know, having gone and had these conversations with people and almost being enrolled in the, the fear and the concern about the market, then going and spending 10 days where I've been completely out of touch with the Australian market other than the big news, which is the change in the Queensland land tax and then coming back in to having conversations with people and really looking at things from a different perspective, looking at the opportunity, looking at where some people are really fearful and coming from a position of lack and, and how, you know, getting it wrong and what's happening in the market and you know, interest rates, inflation and all of these that are happening and then, you know, with a new perspective coming back and just looking at the market how it is and my reflections, having been an investor in this market for over the last 20 years and seeing the times where I got all caught up and enrolled with, you know, the fear and the concerns and doubted myself and what my vision and what I was trying to create, my property portfolio and then other times when I just realized I had enough money or enough borrowing capacity to go and purchase again and I did without any consideration of what was happening in the market, which may sound naive, but I suggest to you, if you're investing for 15, 10, 15, 20 years, it's not naive. If you can see the short term glitches or the short term reductions of price in the long term scheme, if you're buying the right property in the right area that people need to rent and people will want to buy in the future, then, you know, you're actually hedging your losses and, you know, just having that time away and rethinking about, you know, what happens when you are concentrating on the fear and the market sentiment and how that affects your thinking and your mindset compared to the opportunity that abounds, it's completely different. So look, I really, you know, challenge people who are out there and at the moment are caught up with, you know, what's happening, what could go wrong, you know, where what the market commentary is all about, what's happening in the share price, what's happening with interest rates. I really challenge you to step back and have a big perspective about what your goal is, what the vision is, what you're trying to create. And this is also a topic that I had with my mentoring students recently. So the last two years we haven't been able to catch up in person and we had the opportunity to catch up on the Gold coast at the end of August and it was really wonderful to actually spend a whole day together and just concretize what we've learned, all the information, all the resources we have at hand. And as you know, those of you who are in the Location Masterclass or the Ultimate Guide to Renovation, I had the Suburb Selector software which really allows us to narrow down where to buy or with my mentoring clients, I've created an algorithm that actually gets even closer focus. So rather than doing the, the subsequent research and dot map application on overlay to that, it really allows me to get very quickly down to the where to buy in the suburbs that fit their criteria within seconds and then we go from there so we can really jump ahead and get into the market. And those of them that are buying right now are buying with amazing opportunities. And I'm seeing people that I've helped with properties that have been on the market for 940, buying them for 780 and the rents then going up as well. So while there's people sitting in fear and in worry and concern about this short term change in the market, there's those that are seeing the bigger picture and the opportunity and I really encourage you to do that. I mean, as always with all of these monthly reports, you know, I kind of try to summarize some of the webinars, the reports and the information that I'm seeing and give a, a realistic view of what's happening in the market because I think we can just get overwhelmed with, you know, where that is and what's, what's going on. So I really encourage you to, you know, sit back Have a look at what's happening in the market at the moment. Have a look at the analysis. I'm going to share with you. Just get some perspective about, you know, is there opportunity for you? Now, I'm not saying rush out there and grab a property if, you know, you really don't have a buffer or the capacity to borrow at the moment, or you don't have, you know, that sleep of night kind of comfort that, you know, if interest rates did go up a little bit further, that you'd be able to make the repayments. But for those of you who are in the position that you can borrow, you've had increased equity in your properties over the last couple of years. You know, you've got stability of job, you might have a buffer of cash or equity that's already been drawn out. So that if something does happen, vacancies, which I don't see happening across Australia for a long time, but, you know, you do lose your job or you lose a tenant for a couple of weeks, you're not going to be in a bad situation. So I just want to, I guess, share with you my observations for the month and some of the things that I think that, you know, you can dive a little bit deeper into and get the information. So once again, if there's any questions and you want me to specifically ask about something, please hit me up so that I can jump in there and answer those questions for you as well. But it just gives us a little bit of an idea that we've got the opportunity to, I guess, reconstruct the story that's being told in the media. So, for me, the main things that I'm seeing this month is the three eyes of the current property market that all eyes are on, and that's inflation, interest rates and immigration. Now, each of these are getting a little bit of play in the media, in particular inflation and interest rates. Those two topics are not going anywhere fast. But more and more I've been talking about, and you guys know this over the last few months about the effect of immigration. We've just pumped up from 160 to 195,000 people coming in. We know that the immigration department is three to four months behind on processing those applications, which really brings us to January20,20,23 as having an onslaught of people who are going to come to Australia and need accommodation in the biggest capital cities where the jobs are. And what we'll see there is even more and more pressure on rental markets. So, you know, just a quick wrap. Inflation figures are up again. There's an expectation that they're going to hit somewhere around seven, I think. You know, just looking at, at some of the information at the moment around the thoughts on interest rate rises, we know that this week we had a 0.25%. Now that differs from where we've been for the last five, which have all gone up by 0.5%. So, you know, it is an indication that the RBA does believe that they may be getting closer to, you know, pulling some cash out of the economy and maybe putting downward pressure on inflation. So this is something to watch. They've only really got two more meetings before the end of year and then January they take the month off. So it'll be interesting to see the inflation figures that do come out and how they respond to those. But at the moment it looks like they're starting to ease. Obviously unemployment is at the lowest that it's been for so many years. So, you know, nearly 50 years. I mean, you know, at the moment we've got Dan Murphy's, you walk in, you can do, if you're ever 18, a five minute interview and get a job. Areas like Myers and the big retail stores are offering incredible incentives just to get people in for the Christmas rush. So there's so many things that are happening at moment and you know, there's jobs available and we really need to be mindful of the fact that we're about to have the immigration numbers hit us as well. Now, even if we've got, let's say 200,000 people coming and a lot of them are families. So, you know, maybe let's say that's 50,000 families, there's one to two of those people within each of those families that will be looking to get a job. So we're talking about a lot of more people coming in to that job market. So, you know, I think there's going to be some property, sorry, some pressure on wages as well, which is going to be interesting. And when we see that, unfortunately that does start pushing up inflation again. So we could actually be in a world of pain going forward with more inflation issues continuing into 2023. Having said that there, as I'll show you in a moment, there's expectations that some accommodators are actually saying at the moment that interest rates should be falling by mid-2030. Now we've had a lot of changes in tax rulings as well. Obviously land tax ruling in Queensland came in and said that there wasn't going to be a double dipping of land tax But Queensland's land tax calculations would be based on the property values or land values that you held in other states. My understanding is the Liberal state said to the labor state, we're not going to share with you the information and therefore they can't actually police it. And it turned out to be a bit of a fur fee anyhow. I know with some of my mentoring clients and people who have felt that there could be a little bit of challenges in holding properties and we've looked at their portfolio. One of the properties that we'd look at first are those in Queensland because of the effect it would have in their cash flow in holding it. So it's good to see that, you know, we can take that off the table as a way of actually asking questions going forward. New South Wales stamp duty law changes as well touched on this last month. Mainly for first home buyers at this stage. Really interesting to see them to do this because this was, if it get, if they get this right, it'll probably go through and be in the rest of the system. But instead of paying the 20, 30, 40, $50,000 in stamp duty, it's a small percentage upfront and that property for the life of the property will have ongoing smaller charges year on year. So it's an easier way, especially for first time buyers to get into the market. And of course, you know, across the States we've got changes actually in tenancy laws. So I know in my properties in Victoria recently I've had to put air conditioners and heaters in the living spaces. So a lot of things have been going on and obviously interest rates since April we've gone from a cash rate of 0.1 up to around 2.6 and there is some predictions that it will go further. I think personally we may have another 0.25 in the next two months. So, you know, up to around that 3.1 mark that will get us through to February and where they'll see how that's affecting inflation. But remember, if you've been getting lending over the last couple of years, they've been assessing you at rates that have been, you know, 2.5% above what you've been paying. So people have been actually assessed at their ability to make repayments at 5.25, 5.75 with some lenders for the last couple of years. So, you know, just be mindful of the fact that, you know, if you've had lending in the last couple of years that they've had worked in that capacity for you to make your repayments interesting thing on that that I just want to highlight is that the lenders have been adding that 2.25 or 2.5 on top of the current interest rate that you were paying when they were assessing your servicing. Now they did that and they increased that because the interest rates were so low and just so that people protected, if rates did go up as they have done, that they were actually making the right assessment. And there is going to be some argument, I believe in some discussion around should it really have a servicing buffer rate of 2.25 if ever if the rates are back up at, you know, cash rate at 2.6 now. So I think that's going to be a conversation which may mean watch this space that you do actually have higher servicing even though interest rates are going up at the moment going forward if they do review that. So something to watch. That's just my prediction. So check that out. As I said, you know, there are a number of reports that are going on at the moment. This is in Bloomberg where they did talk around the fact that, you know, based on where some of those lenders are that, you know, there was an expectation that rates were going to increase. Obviously CBA's rate calls being a bit conservative, OAS though seem to be on track. So this 2.8, as said, we're at 2.6 at the moment, maybe 3.1 by December. So this is kind of within that guidelines. But they are forecasting rate cuts in the Latter Half of 2023. It's all going to come down to inflation and where that inflation figure actually sits. So let's just see if these interest rates hikes that can take a couple of months to go through to the market and to us in our hip pocket and how we turn up at Christmas time. I don't know about you guys, but we're secret santining this year. So rather than Christmas presents for every everyone, everyone gets one present from one person. So I think, you know, we might see some innovative ways that people are actually pulling their belts in going forward. I find this really interesting. You know, there was some modeling done based on the RBA data that actually said if we did have a 200 point basis increase, so this is equivalent, this means 2% which we've now seen that it would lead to a 15% decline in house prices. So we are seeing some declines at the moment in house prices. But I'm just going to put that in context of how much of price growth that we've had just in the next couple of slides. S and P Global. I attend their webinars. They've got a really interesting high level and in perspective of the international market, of how the market actually sits, they're talking about, you know, some declines down to about the 15 mark between this year and the end of the year. So, you know, and then this growth, and I believe this growth is going to be driven by immigration. So you know, if we can get back up to within mid next year, you know, a 7% growth, that's insane. You know, 7% growth means your property doubles every 10 years. So you know, this is this. I'm really positive about this reflection of what's happening. Yes, 15% decline, but a bump up after that. Now I just want to pull out. We talked a little bit about inflation, we've talked a little bit about immigration, sorry, interest rates. I want to talk about immigration. And this was from a conversation I had with my mentoring clients yesterday afternoon. We were talking about is it where should we buy and where are the immigrants going to go to. Now I've looked at this population government file shaping the nations and I just really wanted to get some context. You know, if we're looking at all the way back to the 80s, so we've got like a, you know, a 30 year kind of coverage here of where immigrants have gone in the past. I have to assume that there's been nothing that really, except one thing that I'm going to pull up in a moment that really changed where the jobs have been. So we haven't had significant job changes that have said between the 50 and 100. So within 50,000 people are going to go to New south Wales. Between 50 and 150 and 90, 40, 90,000 people between New South Wales and Victoria is where most of the immigrants are going to turn up. We've got about 20 in Queensland, we've got about 10 in Western Australia have been higher up to about 30 or 40,000 here. We've got about 10,000 in South Australia and here a couple thousand in Tasmania. Fortunately, Canberra didn't get a look in here. Now we're looking at the major trends over the last 30 years and these are the major cities that we've seen immigration go into. Now as I said, I kind of don't like to take data from one data source and take it for granted. I suggest you do the same. I've gone on the phone and spoken to some immigration lawyers and just asked them where are they agents, where they're sending their people and they are sending people to South Australia and the Reason that they're doing that is because South Australia is considered regional and when they get to a certain number of points I more points for going to a regional area, more points for certain jobs, etc. They can actually apply for their permanent residency sooner. So I was looking at where there's some significant building going on with student accommodation at the moment and a lot of those big companies are actually investing in South Australia and in Adelaide. So I think this could be the only fur fee where we'd see a little bit more of an increase of where people are going to go. But once again Sydney and Melbourne are going to be the major areas that we'll see as having the net overseas migration. This gray nom, net inter state migration is the blue. But this is where we, we're going to see that now Obviously you know, we've had New South Wales over the last few years lose quite a few people post Covid. So post 2015 we really saw Victoria lose quite a few people as well. The blue positive blues is where everyone's going, Queensland mainly and to some degree depending on commodity prices and mining, Western Australia. So you know, I really think we're going to see this going to be the continuation in the future. And if you're looking about where to buy, where people are going to need to live, typical properties in the typical areas, this is something to consider. I find this really interesting too. The high net worth individuals that get special permanent residency or visa allocations. It's kind of interesting where they want to go. And mainly at the moment there's this real indication that there's a lot of that want to go to the uae. So they want to actually go to these areas that are considered a bit safer. So UAE and Australia is number two. Then there's Singapore and Canada and Switzerland, major exits, Russia, China, Hong Kong and India and Brazil. So when we start looking at this, we're looking at where people want to go, where the attention is, we are definitely within that, you know, that target of where people are looking at. Just coming back to inflation. You know, as I said, the RBA is really kind of keen to put a bit of a dampener on this. The issue around inflation at the moment is that it's not just our grocery bills that are actually part of the basket that looks at how inflation is measured. It's also construction costs. And the issue around construction costs at the moment is that they're still high. And they're high for a couple of reasons. High because there's, you know, China significantly has been still under lockdown and has created a lot of distribution delays and hence supply delays, and hence costs go up and they are not improving anytime soon. And also the cost of labor. A lot of people out there, you know, we've got unemployment at very low rates and people are having to pay more. So, you know, if I've had mentoring clients where, you know, they're. They're in the middle of construction negotiations at the moment, and the contract's gone up by 25%, and then that can have a big effect. But, you know, when we look at this as well and in context of renovating, so, as you know, a lot of, you know, ultimate God of renovation queen here, I do love renovation strategy. What I'm seeing at the moment is that you could potentially buy a renovated property already without the cost and the time delays of renovating a property yourself for what an unrenovated property could have cost you two years ago. So. So, you know, there are some opportunities to see here as well. So. Another interesting data source that I attended over the last month is from prop track now proptrack is part of realestate.com they have a lot of insights and information. Cameron Kushner has left RP data and moved over to proptrack. They're starting to actually delve into the information and share this information now. One of the things that's been really interesting in looking at this is been looking at the regional houses. So this dotted line, there's been this huge increase in, you know, the value of regional houses and also, you know, the value of regional units. Not as many units, obviously, in regional areas. But, you know, what we've seen is, like, these areas have taken off, but they're all starting to decline. And, you know, I do think that we will go back to the norm where the capital city houses and units will continue to outperform the regional houses and units as they always have. Watch this space. Happy to be proven wrong. But I think what we're saying now is a lot of people and a lot of employers do want to have their people back a few days a week. Some employers are actually dropping incomes if you decide to work from home for more permanently. So, you know, there are some interesting dynamics going on here. We have seen that quick rise, but I think we will return to the norm. And, you know, the proptech data is really interesting. You know, we're looking at things like the rental market at the moment. I was doing an analysis yesterday. You know, one of the suburbs had a 3% vacancy rate just a Few months ago and now it's down to 0.3%. All of those rental properties on the market have been absorbed. It's taking less days now once you list a property in the market for it to be rented and that's across the board. So you know, it's really interesting to start seeing the fact that properties coming on the market are renting really quickly. As I said, unemployment is at an absolute low at the moment. And you know, it'll be interesting just to see people are screaming for jobs. My 14 and a half year old son has his first job selling fries. And you know, everyone seems to be really trying to get more and more people in. And this is around a couple of things. We have had turning off the tap of overseas students who often take part time jobs, but also a lot of students have retreated to the regions to the parents. And we've seen that as well in the past and that's taken people out and I know, you know, some of the, I was talking to a lawyer the other day who was telling me that, you know, at the moment there's a, an oversupply of lawyers and you know, graduates have spent four years at university and coming out with these double degrees in law and finance or law and accounting, law and marketing, law and international studies, trying to get a job at 55,000 a year and not getting it. You know, as sad as it is, the biggest employer of PhDs in the world is apparently Starbucks. So you know, I think that there's something to watch here, especially if we're bringing in these high net worth individuals and individuals who have a high skill set who are, you know, going to get that permanent residency sooner. We're going to see some real pressure on filling up, you know, some of these jobs, especially as a retail job. So I think we'll, we'll possibly see this reversal coming up in the future as well. And obviously you know, there's been markets that now proptech started, they only went up to June when they reported this. So you know, just be mindful the fact that these numbers have changed a little bit as well. But you know, this is kind of looking, this is houses and this is units. This is looking at, you know, a drop. Once again, units seem to be dropping a lot faster. 12%, 17% compared to 1, 2% for houses for instance, off the peak. So we're seeing some changes here. We've seen dwelling prices that have also been of concern. But what's interesting here, here's the change in dwelling prices between March 20 and June so you know, Canberra went up by 44%. We've got regional Tassie, Tassie up by 50%. Some incredible numbers here, you know, 48%. So this is over a year and a half. Just be mindful of that. What we're looking at here or almost two years. So you know, we've had some large extensions. But what's interesting here is how much prices would have to fall to return to back to where we were in March. So you know, Canberra would have to lose 30%, we'd have to have Hobart lose 30%. We'd have to have, you know, Adelaide lose 30%, Brisbane is 30%, Melbourne just 16 and Sydney 20. So we'd have to, you know, this has to be some significant losses to actually go back to where we were, which was still a good place in March 2020. So mindful of that, I guess is, is something to watch as well. Sales volumes are down year on year as well, you know, we know that. So people weren't really putting their properties up on the market. There was that fear of interest rate hikes which came through gap between Sydney prices and other Sydney prices is, you know, still well above that long term average. I think I looked at numbers this morning that said average house price in Sydney's 1.6 million compared to 1.1 in Melbourne. And we know that for instance these prices do catch up. So it's, it'd be interesting just to see that how affordable some of these other areas being Melbourne and Brisbane are going to be and Adelaide in particular compared to Sydney and how that might start attracting people in those areas as well. Rents are up. I know that, you know, I haven't sought to increase my rents but when my tenants have moved out, my rents have all jumped up by 20%. So we're going to see more and more pressure on that as the immigration numbers open up in particular in Sydney and Melbourne. So we're at the lowest vacancy rates for so many years now. The yields have also gone up. For instance, when we look at yields normally in say Melbourne and Sydney, when I'm doing this as part of my mortgage broking calculations, I'd be putting in 2.2%. They're all up over 3% now. So we're starting to actually see that there's been quite a significant increase in the rental yields because rents are improving, rental listings are down. So there's less properties available. And with less properties available, more people looking, we're going to see rents go up. New sale data, you know, they have been up a bit but they're down overall. Sorry, they're up a bit but they've been down of what we've experienced in the last, in the norm, if I can say that. But we're starting to see the spring season come through. I've just read the McGrath's report said, you know, there's more and more attention coming through so you know it looks, looks pretty good. So many of the investors have exited the market and continue to do so since the onset of the pandemic. Having said that, the volatility in the share market and the, you know, just being in the States in the last week, the fear of recession over there is very, very real and you know the, there really is a lot of concerns about people having lost their jobs and you know, how they will live and just being in la. I've never seen anything like, and you know I'm not an international traveler by any stretched imagination but I've been there three or four times. There's something like 20,000 people homeless on the streets there and they're everywhere. There's this little pop up tents up and down the streets and I was staying in downtown and it was actually quite, it was quite distressing to see how many homeless people were on the streets. Now the way the Australian market has an RBA and government has managed Australia through this period, I don't think anyone's really rushing into saying the recession word but it would seem that, you know, the interest rate rises have put some confidence in the RBA and being able to only put 0.25% up this month and it's a bit of a wait and see but that kind of fear and trepidation that I experienced in States in the last week, nothing like that here in Australia. So it's kind of interesting to watch that and I think we might start seeing this number of investors come back as the savvy investors are looking at properties going wow, if I can buy this at a 15% discount to where it was last year or 20% from the year before and know that I'm buying for the long term and that rental yields are going up and I'm buying in these cities where people are going to be living and moving to, you know, this is a bit of a no brainer. So I think we might see a retreat from the share market to the bricks and mortar safety and this starts moving up. I don't know why I put this in here. Cameron, as I said from realestate.com we're talking about, you know, where people are moving out of. And I think it's no, no, no surprise that a lot of people lost, left Victoria and New South Wales and moved to Queensland. They had a lot better way of managing the lockdown in my opinion anyhow having lived through it in Melbourne. And you know, potential renters are up, you know, cost, as I said, construction is up. Mainly steel is where we're looking at but also timber and ceramics. So you know, some significant issues here and just, I mean anyone who's normally trying to buy products for properties, I mean I was looking at a number of properties to be refitted for my parents to move into, into retirement villages and they were just saying simple things like door locks or window locks. They, they had an eight week wait on and they couldn't, I was mad, they couldn't be selling some of these properties because of the weight on some of these simple little products. So interesting to see there is a lot of stock under construction. There is some more approvals coming through at the moment but they're still not at near the level of where they need to be to satisfy the 195,000 people heading to Australia. So it's something to watch. I just want to flag this with you. I've been looking at Brisbane in particular with respect to the Olympics and I did do a bit of study around what happened after the Commonwealth Games, the Olympics in Sydney, you know, and some of these other, and Expo. And what was interesting is I found this report just today actually that talked about the fact that between, you know, they're looking at the forecast of median growth between 2003 and 2015 which captures the years before the 2014 G20 summit. And they talked about this incredible increase leading up to and one year post this G20 Brisbane summit of 111% which essentially means that some of these areas are going to have a huge boon. What concerns me and is that I looked post these periods of time and once these major events had come and passed it seemed to me that the gains had been lost. Post that. So although you might be reading about hey, there's this huge improvement that's going to come in the next few years, just be mindful and aware of the fact that this is talking up to that period of time. If you're talking about holding a property 15 to 20 years through these areas and you're buying based on a major event like the Olympics, be concerned that post those events that you, you may lose the gains that you've made. So just be mindful of that information, really interesting data. You know some of the countries that have not actually had as good returns on the properties have really been around the fact that they didn't plan well. So you know there were some countries that you know, had planned really well post event. So you know, Tokyo, Beijing, Sydney of how changing that accommodation into a build to rent accommodation or for owner occupiers. But there were some areas that kind of rushed in and didn't have the building and that insight such as Rio and Athens that then you know created an oversupply of properties that were fit for purpose that couldn't really be used for anything else. Now there's going to be one of the reasons Brisbane was one of the sole contenders for the market and further Olympics this time is that there wasn't a lot of infrastructure that had to be built. You know they have some, you know, good transport in place. There are some plans though, especially around that North Shore Hamilton area which might be area to watch. There's two big towers. I think they're putting like 200 apartments in Woolloongabba Olympic Stadium sites. There's a hotel that's going in. There's another 200 room tower around Broad beach. So. And another. Yeah actually and there's, there's two 200 plus apartment blocks around those areas and Hamilton's putting a 10,000 bed village in athletes village. So you know, just be aware that that will be a whole lot of apartments that are there for visitors. But post the games will there really be the demand for you know, an extra thousand rooms or after the games and if you're buying an apartment you're going to have to take that in consideration. So read this information, have a look at it. If your time frame is in the short term less than the time frame when the 203210 year time frame is, there may be opportunity abounds but it put it in context for your total plan. This is the latest Heron Todd White property clock. What's really interesting here, we can't say that it's one month or five months or whatever between each of these periods. But I just wanted you to see in context to the April and September we had most of the market in a rising market in that period of time and approaching the peak of the market. And there were some areas into the peak of the market and none in the decline. Now we see Sydney, Ipswich and Brisbane heavily into this decline. Now what's really interesting here around the colors is that the yellows indicate that they move since last month. So Brisbane and Ipswich in August would have been start of decline. They've now quite quickly moved into that decline area and we've got you know, Melbourne, southern Melbourne areas and we've got you know, some of the Victorian areas that are starting to to move as well now. They've been sitting and starting in this for a period of time approaching the peak. You know we've got Hobart and Adelaide, that of the major cities and Darwin and Perth are still in the rising market and I would say Adelaide should be in here too. Adelaide in approaching the peak peak of the market might have to take you through some numbers but a recent recently sold my parents little unit they inherited in Dubbo. So that was a whole interesting experience. But we can see that, you know, Sunshine Coasters has moved in from approaching the peak to the peak. But you can see that we're starting to get around this corner now. And as to where we were six months ago, that's about it. Anyone who would like to check out or go on the waiting list, a couple of the new courses that I've got coming up through your successclub.com au I'd love to have you along. I ran Renovate yourself Renovate your wealth which is a one day workshop last month and it is about to go live. It's around the money stories that you tell yourself over the last 20 years. Working with people and understanding where people are and and how they are buying properties and how you do anything is how you do everything is what I found. I've really gone down to try to work out, you know, why some people get it right, some people return to their set point, you know, they may not. They might make money but then they lose it or they may be fearful about making money. So I really encourage you to put your name down for that. If you put your name down the wait list there I have a hundred dollar off voucher so it's only $297. Your way to wealth is a course that I ran in the Gold coast in person recently and it was looking at seven steps that actually assist you on getting on your way to wealth and wealth being of health, spirit and financial. So check these out. I've got these both coming up in October as courses that you can do. Once again if you need some help on where to buy property, you can sign up to my where to Buy and we can get on the phone and I can run those algorithms. I work with my mentoring clients with and give you some real indication of where you might want to buy and give you access to RP Data and some of the tools that allow you to do that. And finally, you know, I've got a team of finance professionals. Obviously I own Investors Choice Mortgages Bank Bank Mortgage Breaking. You know, I've created this framework that I use with my clients around, you know, being very clear on what you're trying to achieve and then getting in and getting the finance set up, sourcing the property in the right way and understanding how to get it, understanding how to secure the property and then putting it aside and moving on. And you know, for me, understanding that vision and understanding the finance as a vehicle to allow you to get and build your property, success is really very important and hence why, you know, I've had a mortgage breaking company for the last 17 years. I have a large group of trusted financial professionals I work with and jump on the call and let's have a chat about where you are finance at the moment. There's a lot of lenders who are getting a little desperate because people aren't out there buying properties. And because of that, they're offering some significant cashbacks for $6,000, for instance. But what I really want to make you aware of with that is that, you know, I spoke to someone yesterday who was finally in a position to uncross collateralize one of her properties and also in a position to, you know, refinance. And we were looking at what she could do to refinance. And my suggestions were don't or go back to your current lender and see what you can do. And that was mainly around the fact that she has a fixed loan of 1.89% that you know, is going to go through to the end of next year. And it was for a significant amount of money. And by actually changing the structure of her lending and uncrossing her properties, it actually triggers an event that stops that fixed rate contract and she would lose that. And so just be mindful that when you are talking to your brokers or the lenders, they may not be looking at the bigger picture and it may not be, you know, the right time for you to refinance. So as I said, you know, my suggestion was she didn't at this stage and that she held the property or spoke to her lender just to verify whether that would trigger an event to break the fixed rate. But anyone on a fixed rate with a 1 or a 2 or even a 3 in front of it is doing very well. Obviously the fixed rates at the moment all have fives in front of them and that's an indication of where the lenders think that the market's going to be in that period of time so they don't lose money. So just be yeah, mindful of I guess how the, the wheels of finance really work. And if you want someone to give you an assessment of where you are at the moment, Please contact us investorschoice.com bookacall and I'd be delighted to have a chat or one of my team will in just seeing how we can help you progress with your finance. So we don't have any other questions. I guess that's really it that I have for the month. As I said three I's to keep your eye on and that's immigration, inflation and interest rates. I think that this last interest rate hike being less than the last five at 0.25% indicates the RBA believes that they're bringing inflation back under control. Be aware immigration will be hitting our shores 20, 23 extra people to take jobs which may put some pressure on immigration once again but a lot of pressure on rental markets. And we don't have the properties at the moment. Properties under construction being approved won't be done in time. So we'll be seeing rental yields go up quite considerably. We will see, see also within 18 months of those people hitting the shores, remember they do then have the ability to start buying. So you know, this might be a decline at the moment in the market but you know, just think of the big picture and if you're buying for the big picture, keep that in mind. You know, this slump now may just be a short term thing. If you don't need to sell it, sell. It's not a big, big deal. And you know, also when looking at potentially buying in Brisbane based on the Olympic boom, if you're buying for the long term, you can see the short term bump. You know, if you, you're going to have to, you know, play the game and gamble a little and time the market to get out in time. Based on what we've seen of what's happened post events with the Olympics in Sydney and Melbourne and G20 and Expo. So you know, just be mindful of it that you know, timing the market is in my opinion a fool's game and makes it very difficult. The best thing you can do is buy the best possible property that you can afford when you can afford it and the property that people want and where they're going to live. And we know just looking at that data now, immigration data tells us that traditionally people go to where the jobs are. People traditionally Go to Melbourne and Sydney. You know, I'd expect that we're going to see rental yields above 4% in those areas in the next year. And people usually end up living where they rent when they come to a new city. So, you know, we'll then see within 18 months those people buying properties and we'll see a bump. So, you know, don't, don't see that this is all doom and gloom. There's people taking opportunity now and buying in. As I said, you know, I love renovation as a strategy, but if you can buy a property already renovated at a price that 18 months ago would have been an unrenovated property, and we know there's a building supply and labor costs have been hiked and timeframe costs at the moment, there could just be an opportunity sitting under your nose. But as always, big disclaimer on all of these calls, which is, you know, this is not personal advice for you. This is my observation over the last 20 years of investing and helping tens of thousands of people invest and get finance that, you know, there is opportunity to be had. But understand that you've got exit strategy in place. Understand that, you know, be confident that you can make the repayments even if interest rates go up another couple of times. And also be confident you have a bit of a buffer in place and you know, your job secure, that if something does happen, you've got, you know, an opportunity to dig into the cash flow. So not a lot of questions, which is great, but always here to answer questions. And in the Facebook group, it's lovely to see so many people supporting each other in the group with the questions being answered. We're making some plans afoot at the moment to get more active in that group and get other people more active in the group coming up to the next couple of months. And yeah, next month, I look forward to Susie King, who's going to be sharing with us a recent renovation as well, which will be all very exciting. So, as always, if you have any questions, drop them into the club. Yeah, we're here to help and we have a team of people who can assist you with your questions. Location Masterclass and Ultimate Guided Renovation RP data. And we've got a lot of tools that can really assist you make the choices around where you're going to buy. And as we know, where fortune favors the brave, and to paraphrase Warren Buffett, when there's blood in the streets and people are uncertain, that's where fortunes are made. So I really think this is a fantastic time for people to start actioning their long term plans and creating the foundations for their property success. So, as always, here's to your property success. Bye for now and I look forward to chatting to you on the Last Thursday of October, 12:30. Same place. See you soon. Bye.