Your Property Success Mentor April 27 04 2017

Hello everyone and welcome to the youe Property Success. April, call now. If you can hear me or you can see the screen, please let me know by putting in the chat box. The fact that you can hear me, that would be great and really help me a lot. So who have we got here? Oh, I can hear you, Wayne. That is wonderful. Thank you so very much for letting me know that. I gotta say we've had a few little technical problems here today, but joining us, John has been a little bit tidy and he will be here later. So hey Fahad, great to see you as well. Well, I hope that you're all geared up with all of your questions that we can go to and discuss soon. We'll just wait for a few more people to jump on. I know it's top of the hour and all and we will get chatting very, very soon. So grab a cup of tea, turn off the TV in the background and I will be with you in a few moments. Okay, we're almost there. Everyone can see the screen. So welcome, welcome everyone to the youe Property Success Monthly Q and A call. Now this call is specifically for our ultimate guide to renovation students and the Diamond Club members. So Diamond Mortgage members and of course some special guests as well. Now if you're listening to this as a recording, welcome to you. And you do have the ability to actually call in as well in the future. So without further ado, let's get into it. Now these calls are primarily for information only and I'm not a real estate agent, accountant or financial planner. However, I am an investor and after many, many have built up a source of knowledge and hopefully I can share that with you this evening and answer your questions. Now just a reminder, you can leave us a call on 130076111 and this month we have no calls, but that is all good. It has been an incredible month and I hope that all of you have had a really great Easter and a wonderful break. Now as you probably know there's been a huge amount of changes in the property market and geez, it just helps us to try to keep up with these. But you know, it's been a real up and down trying to monitor what's happening in the news and we're going to try to cover some of that for you this evening as well. Now as always, these calls brought to you by myself and my co host John Hubbard. John as I mentioned, is running a little behind, so when he actually arrives, make sure that you give him a big hi ho because he'll be Coming full, full speed into the room. Now, just a reminder, if you are going to ask a question, you can raise your hand and let me know that you have a question and hopefully a microphone because we really love chatting to people and getting to the bottom of your questions. And I know it's a little bit difficult, but it's a tiny little hand up there. Now, if you do have a microphone, please put your hand up. And I do give preference to people who do have the microphone. However, if you don't have the microphone, then I suggest you type in the chat box and let me know what your question is. So first and foremost, let's ask you some questions. Okay, who had a great Easter? I want to hear, I want to get you guys involved. Please let me know. Did you have a great Easter? Oh, we've got a few people saying yes, it was a good break. Okay, come on everyone out there. Yeah, great, thank you. Thanks, Nina. I had a wonderful Easter as well. Obviously, school holiday has been around the country as well, so everyone has been, I guess, coping with that who have children as I have. I so coming to trying to be a bit of a mother of the year, I ended up going to a scratch programming camp for kids and their parents trying to learn scratch. And I also went to a Minecraft parent and son and daughter camp. So that was pretty exciting. Not as exciting as it sounds as Sarah who was house hunting in Melbourne, but, you know, we had a pretty good time. And you know, the thing about what's been happening here in your property success is John and I have behind the scenes being doing some pretty amazing things. And we've really been gearing up for our next intake of the Ultimate Guide to Renovation, which, you know, I'd love to tell you a little bit later if John's not here because I think I'm sworn to secrecy on it. And also we are revamping our your property Success club. And you know, those of you who are in the club, it isn't really a wonderful community and I wanted to share with you this evening some of the stories that have been happening there as well. So once again, please, if you're going to ask a question, love you to have a microphone so we can really get to the bottom of it and it really helps everyone get along. But if you can't, then put your question in the chat line and you know, you can start those coming through or putting your hand up now. Now the other thing is, you know, if you are actually having an issue and I attended a Gotowebinar webinar recently on my iPhone. I can't believe how easy it was and I could actually also send little, little likes and so I think it probably a whole lot easier experience than on a tablet or a PC or Mac. Now this is the mentor call. This is dedicated to you and your questions and answers for the month. So any questions you have. And remember there are no questions that are silly because everyone at some stage has asked those questions. And often I find when I start talking to people that I make assumptions. The little things that you kind of start with like even terminology, lvr, loan to value ratios or, or just terminology. You know, sometimes we make assumptions that people know everything. If we do that and we kind of leave you on a bit of a hop, just put your question quickly in the, in the chat box and we'll get onto it. But if you do have some more significant supports, I know support issues, you know, like videos won't play or you're having trouble logging in, please get onto supportourpropertysuccess.com and the lovely Diana will be able to assist you. So tonight we are going to get into the Q and A. So I'm just going to give you a little rundown of what has been happening in the market and I guess my perception of what we're seeing. So as you know, in the media we have seen calls of the boom, the top of the market, a bust is on its way and then we have month on month reports of information that's indicating that in actual fact the market keeps going up. We have, you know, commentary on the percentage of household wealth we have on affordability issues and the government and the labor party throwing out tactics and strategies and ideas and I think just to really say that they're actually doing something and you know, some of the silly things that I've seen recently, you know, the labor has called that you can't borrow money in your super fund anymore to buy a property. Now 0.19% of the trillions of dollars associated with property is actually associated with superannuation bought property, residential property. So it's going to have a minimal impact. Sounds good. Sounds like someone's actually taking some action. So just be aware, I guess of the fact that not everything that you read is actually, you know, reliable information and something that's going to assist this affordability issue. I think that from an affordability point of view there are some really great strategies and ideas and I'm in the preparation to gather some of those ideas and at the moment I'VE come up with four out of the box strategies that I'm going to be exploring in the next couple of weeks and invite you to attend a webinar on the 25th of of May where I'm going to go through those in a little bit more detail. But you know, there's some really interesting things out there and we've been talking to a lot of different companies about what can be done and really I've been putting my thinking hat on to kind of come up with ways that our students and community continue to invest with some of the changes that we've seen. So I mentioned not being able to buy in. Super. We've also seen with the lending from investors Choice mortgages. Obviously we're dealing with people every day and mortgages and lending. And since APRA made the changes about 18 months ago and ASIC they've come out with things like when a loan changes significantly, a new application is required. So we went out and talked to 62 of our clients that were with current lenders that allowed you just with a piece of paper to increase your interest only period. Because when an interest only period expires and goes to maybe a principal and interest period, it concerned us that some of people may not be able to service the existing debt they have. So it's being proactive about those kind of things. We're seeing lenders like AMP and Me bank have said that they'll only go to a 70% loan to value ratio for investors. Now we saw the banks pull back during the GFC 2009. You know, Adelaide bank went to an 80% so this is the first time we've seen a 70% LVR. Now when I look at the world market, you know, we're very similar and close to what's happening in New Zealand and New Zealand had this kind of price escalation quickly in Auckland and we're about 18 months behind the regulators changes and they've made subsequent changes trying to pull back that Auckland market. But what we've seen there is October 2016 they just announced that all LVRs and investor properties are going to be 60% loan to value ratio. So I don't see that happening anytime soon at the moment. But you know, locking in for people who have a strategy around maybe buying at a 90% loan to value ratio, doing a renovation and then tapping in that equity to all of a sudden find that they're with a lender that only allows a 60% loan to value ratio means they can't get the money out. So we have to come up with some really interesting ideas. We've also seen some questions about first home buyers be able to use their super to purchase properties. We've seen this idea that there's professional investors and one of the last lenders that has actually been very, very lenient towards existing debts that investors may have is Liberty Bank. And we've had a lot of our clients who can't service their loans elsewhere go to Liberty Bank. They haven't necessarily been under the APRA jurisdiction because previously they weren't deposit taking facilities. But when APRA put out a recent announcement that said any interest only loans should, you know, be regulated and reduced to under 30% of what banks write, they also extended that to different lenders that the banks fund those wholesale lending. So we may see an effect there. But one of the interesting things that Liberty came back with was that if you own a home and an investment property, two properties, you're considered a professional investor if you go for the next property and they'll hike your interest rates up by 0.5%. So back again in New Zealand we found that when people had more than five properties they were considered professional investors and had to have commercial loans. But this is the first time we've really seen that terminology used there. So lots of really interesting things and as I said I'm really working quite hard on coming up with some solutions for our community on how they may consider investing. So that is really exciting. Some other things, things just on a personal note, we've had some, some really cool activities in my, in my office. My husband is an artist and I encourage you to go over and check out his website. Tom toddsimsonart.com and but he was engaged by Nathan Lyon who is, you might know, nice one Gary, the Australian cricketer. He has been engaged to paint him. He's a portrait artist Todd. So that was really exciting. So Nathan came down to our office on the weekend and we had a chance to have a chat to Nathan and spend some time with him and just a really great guy. So you know I, I think that, you know there's some, there's a bit of fun to be had in, in, in watching Todd Simpson art on the Facebook page the images that Todd's going to be painting of Nathan. So that is really exciting. And this guy, I just have to say, you know, hopefully you can see that screen but you know, he is completely humble. He's you know, a boy from the bush in New South Wales. He was a greenskeeper in Adelaide looking after the greens. And every now and then when the state team didn't have a bowler, they'd get him to bowl. And they were so impressed with him. He got a guernsey and started playing for Australia and he, he's there holding his hat. And the reason that I really particularly love this image is that he shared with me, you know, it was his lifelong kind of boyhood dream to be a cricketer and play for Australia. And when he was given the baggy green hat and they only ever get one, they don't get one for every test. Once they have one, it's really hard to get it replaced. Apparently he slept with it. It was that important to him. And you can see that number there on his shirt. Can everyone see the, the picture of Nathan? They just type in and let me know. But that number, 421, he's the 421st Australian to actually get the baggy green. And he's just, you know, just an amazingly humble guy. And his hat stinks to high hell. He's like, you know, this is really, it really smells really bad. And he was true, it's true, it does smell really bad. So he was a, he was a really great guy and really sweet. At the end of that actual photo shoot, he ended up giving that shirt to my son, my nine year old son who was really nice. So he only had six of those shirts that he had in India. It was washed and didn't smell. But how sweet is that? So see this image here? This is the image that you will see hopefully in the future somewhere else. So that was really nice. And I think the thing is that it really brought back to me if you have a goal and you believe in what you do, you know, anything is possible. And this guy just absolutely fully lived that. So I really took a lot of inspiration from him. And it's just a down, you know, really nice guy. He spent three months playing over in India and flew down, spent a couple of hours and they came up with a concept for this painting. And yeah, I'm really keen to see it. So that's pretty cool. So, so continue to watch that. Now. The other thing that I wanted to share with you was just some of the activity that has been happening on the your property success club in the last couple of weeks. You know, I think that, you know, our club is definitely growing in members and we really want this to be the go to place that you come back to every day and just find out what's going on. And you may recall I ran a virtual hotspotting workshop for Brisbane because I was really keen to find out what suburbs that were on the hot list. And that was a lot of fun. And I demonstrated, you know, through a number of videos, some of the tools that we used. But I also demonstrated, you know, that final kind of analysis that you can do. And we got such great feedback from that. So all those videos are there locked away for you in the club. But the other thing is, you know, we've got people in here who are asking questions and, you know, you know, this person here had a question about pest and building inspection, and although I try to get in there every day, I can't get in as quickly as some others. And, you know, the whole community got behind and answered these questions and really, you know, came back and supported the. The entire, I guess, journey that Saul was on and really assisted him in making some decisions. And I think, you know, that's what we're trying to create in the club, which is just really fabulous. And then, you know, there were some people that had gone on. Dina got on there and shared her recent renovation and had. She had some fabulous returns from that. And, you know, just people that were trying to share some of the resources. I know this name is not real, but Rebnik Philip, you know, got in there and talked about his renovation as well. So, you know, I think this is like. And he's. Here's Danita's. You know, this is some really fabulous people doing some wonderful things. And I really encourage you to go and check out the youe Property Success Private Facebook group. And obviously, as your Property Success Club members, they will get access to that. That. So. And the Ultimate Guide to Renovation Students at the moment as well, which is really exciting. So that's all really exciting. I don't really have any much more to. To go through that, but I really just encourage you to, you know, keep. Keep going to the, you know, the. What you're doing, you know, going back into the club and I guess share that. That information so that, you know, you can, you know, go through and. And, you know, share your. Your thoughts on how you can help people, but also, you know, give people an idea of what you're up to. So I think that's really exciting and I think that, you know, there's some. There's some really, really good opportunities to share experiences. So. So without further ado, John still hasn't turned up, and I've rambled on for a bit about what I've been up to. But over to you guys, I would Be really keen to hear, for those of you who do have questions, how we can assist you, because I know that there's been a lot of changes and we're up to question time. You're not going to believe who walked in the door just now. Make sure you give him a hard time. But before, while we let John get a bit settled, I can see that we do have a few questions around. Does anyone have a question and want to put up their hand or have something specifically that they would like to say? I think I see Stacy here. I'm going to unmute you, Stacy, and just see if you have a question. Hey, Stacy, do you have a microphone there? Yeah. Hi, Stacey. Hi, Jane.

I should have. Can you hear me?

Yeah, yeah, I've got you. How are you? Hi.

I'm good.

How are you?

I'm breathless now. I've had to talk the entire time, so, you know.

It'S been good, though. I've been listening.

It's been good. Oh, good. There you go. Give John some feedback. Cece, do you have a good Easter?

Well, my husband and I, as you may remember, are about to hit the revaluation, so we've done nothing but work for any conceivable public holiday for the last two years.

Yep. That sounds like the life of many a renovator.

It is positive. I'm feeling really. I'm feeling nervous. I'm feeling nervous, but. And I noticed somebody else had made a post on the. On the club as well, and there were a few comments about it. And so it's not even really so much of a specific comment at this point. I'm too tired to think straight, but I just thought if there wasn't anything else going around, just talking about revaluation and the process when they come through, and just the kinds of things to consider, I thought that might be topical.

Yep. No, that's great. So I guess the thing is that with the revaluation period, and it was a lot of great commentary and I think thoughts that were in the club and that particular posting, but with the revaluation, often when I'm speaking to people and, like, they will say things like, look, I'm almost done, the landscaping's almost there, or the kitchen, it's just missing a few doors. And really having done all that effort up to that point to then get a valuer out there, it surprises me how often people are so tired. Like, you sound so tired and kind of a bit over it and going, jeez, it's not going to really worry. What can it mean and I've seen valuations come back go, oh look, another 10 grand has to be used on the gardening. And you and I both know we could do it for like 500 bucks. And they take that off the valuation. So just being aware of the fact that the valuers are going to be strict if that kind of work hasn't been completed. So if you've only got half a kitchen then they might actually estimate how much it costs to finish it. And as a strategic renovator, we know that we can do things and make a perceived value a whole lot more than what the actual value looks like. So you know, actual value cost. So that perceived value could be a lot higher. And that's what the valuer would deduct from the valuation. So have the property ready when you had the valuer. And I've even been down the process of having a property that I've bought renovated to hold and I've engaged a stager to actually stage the property for when the valuer comes in. So it made meant that much to me to not have like the empty floorboards that you kind of walk in and go, yeah, check. I wanted to have some kind of emotional connection. And although if you've listened to our podcast with Kieran Claire, he says there is no emotional connection, he lies. Because there really is. Because I've seen the difference. And we've got a couple of valuers in the your property success club and they'll give you a bit of a heads up on that as well. But you know that revaluation is so very important and I guess one of the questions that came up was should I do it my so should I go and get one myself or should I wait for the bank or speak to the broker or whatever. And if you are using a broker and you know, let's face it, almost 60% of Australians do, I think it's really important that if you have been in part of that journey with, with the broker on what you're trying to achieve, they're across these daily changes with lenders. And you know, we have, you know, some lenders at the moment, if you have, you know, less than an 80% loan to value ratio, for instance, they will take the contract of sale and other lenders won't. So there's a lot of different practices. But I've seen people make a big mistakes with valuers. And one client actually was so nervous about her offer that she was actually going to put in on a property to purchase at auction. She got the valuation done by the bank that had been had pre approved and the valuation came in lower than your auction price and hence the valuation stands. So that's why we don't do valuations with the bank that you're actually banking with prior. Now there is a lot of banks that actually do upfront valuations for free, but to give you kind of indicative. But they're not going to. If you're with cba, for instance, and you get a free upfront AMP valuation, they're not going to use the amp valuation. And often what they're going to do is they're going to, they're not often not going to sign it over, but more and more. So the banks have gone to what's called a Valex system and essentially it's almost like a Russian roulette. Whoever, you know, they put the job up and whatever valuer who's on the panel gets it or takes it first or their allocation gets that. So you can't say I want Heron, Todd White or I want a specific valuer. There's some lenders that you can do that, but they're usually those second third tier lenders like Latrobe for instance. So, you know, the really important thing is the reason why I say is consult your broker because if they're doing the. If they know that, for instance, just like amp, you're with amp and Amp's loan to value ratio on investors has gone to 70% and you can't access the equity, there's no point going through the valuation process with them. They will have to refinance you elsewhere. So, you know, they'll be across what your strategy is and what you're trying to do and they'll get the right lender to ask for the valuation for you. And I think the other thing that's really important is prepare the property as if it's for sale. You know, this is every public holiday of the last two years of your life that's gone into. That's right. So make it look wonderful and know that valuers are going to spend about seven to ten minutes in there. They're validated. Usually they're geographically based. They pretty much know the area. And I think, I think I'm going to call on John now to say his first word for the night. But I think Kieran mentioned to US maybe only 30% of valuations are actual purchases, the rest are refinancing. You're not even going to see them, you know, so they're actually across a lot more of what's happening in the market than you may know. And they may not also know of recent sales that have been auctioned, for instance, or there has been a signed contract. So having that prepared of the recent sales down the road and the name of the agent, the date of the sale, the price of the sale, and then contact detail for the agent so they can verify it quickly if you want that price used is really important. But if you're in the Ultimate Guide to Renovation, I think the valuation template document is in module 10.

I filled that out in my case. I've. I've completely filled it out and I've probably put in. Well, yeah, I've scaled the comparable sales, but I didn't. I didn't think to put in the 8 and phone number and things like that. I just did.

Yeah.

It's only one of the valuers.

Only if they're very recent because sometimes they can get missed. And you're thinking when they come back.

You'Re like, I put them. I've put them in. Yeah, I've put all the recent ones in too, because for two years I've followed the market as well.

Yep.

So I hope I'm an expert. But at the same time that one of the valuers who are coming are very local.

Yep.

So they will. They will be very expert. The other one, I'm not sure they. When I pushed them off to Monday because of the flu going through the family, they didn't want to. They didn't want to rebook straight away. So whether they're coming Monday or not, I'm not sure.

But it's funny, I saw that. I saw that email come through going, valuation delayed because family sick with flu.

That's right.

That's the first time I've actually seen Valuer say that.

I explained that they could come, but the children were vomiting.

Just so attractive.

Yeah. So after two years of. When you finally hit relief, you. Everybody gets sick.

Yeah. They've got such a busy schedule. Like in. We've had two on the podcast so far, and they described how they have to get through. You know, it's all around the numbers. The numbers they can get through in a day. So sometimes I think they're just happy to have your. Your list of comparable sales are similar and superior and inferior properties just so they can back up what they come in with. So, you know, I actually think we're doing them a favor half the time.

I do, too. And that document that you've provided, we went through this as a bit of a case study. We. Gabriel didn't we as well. And he, you know, and you know that conversation that you have with the valuer and just letting them know what improvements you've made because if they were just going to, if. And the other reason that you need to talk to your broker or bank is that if you are at an 80% loan to value ratio often what they'll do is a desktop or drive by valuation. You're not going to get that value that you have created inside the property. So sometimes the, sometimes the broker will say it's an 85% loan to value ratio just to push it over the edge so that we know that we're going to get a walkthrough and that's so important because if they're not going to do that then all that hard work goes to waste. So you know, just those kind of little tactics are important but you know, present it as if it's you know, get rid of sick children or hide them in a room, make sure they're okay, wait till they're well in at school but you know, present the house as if it's going to be sold. Give them the recent settlements that they may or may not be aware of and give them a rundown, not cost of what you've done. So because it's all about well you know how it is, we've did it over a period of time and you know, bit of mates, rats going on because of my brother in law and whatever that story is and you know I, you know found some really, you know these are the Italian, you know, mosaic tiles for instance. They don't need to know that you got them on a backorder from Graze online, you know, so make sure that you're presenting, you know, know the property properly and, and yeah, well I can't wait to find out what we find out.

I can't, I can't either. I'm nervous but I think that's just par for the course and I'm hoping for a good result. But let's say it's the, it's the first complete one and it's been a long, a long period living in the projects.

Not for the faint hearted and it sounds interesting.

However, let's hope the rewards are there.

You know I just think following some of your story, you know, I don't know how but much from a privacy point of view I'm not going to reveal everything but you know, every now and then we, we've been getting updates from you via email and it's been like oh My gosh. We got something done for a case of beer. Like you've been doing some. Really? Yes. Do you want to share some of those with us?

I have, I'm happy to pretty much share anything, Jane. It's, it's, it's been, it's been such a joy. It's almost like therapy. But I did do a deal for. They were reclaimed Calcutta marble bench tops for a slab of beer.

Nice. How good is that?

Yes, and so I have not put that, I've not put that on the valuation, on the template, that's for sure. So there were a few funny things like that. And I've striven to provide a perceived value that's very high. It's a hundred year old Edwardian home. It's got charm and heritage, just heritage charm. It oozes at every corner. But of course if you renovate a house like this, it's not like doing a mid century weather board that you can get away with different finishes. You've got to run with the drama of the 11 foot ceilings. You can't ignore that. Plus also, although what we bought was always intended as an investment grade property that we would one day live in and that's a hard roof to fill and we think we got there. But it is our home as well. Therefore some of the decisions I've made I would not do on property number two. That will be strictly for investment. Yeah, so, yeah, so there's those aspects for sure. But. And I would love to have gotten a stager in, but it just wasn't going to happen.

Not with your living with all the circumstances. Yeah, that's right.

With all the circumstances and children and so I've done my very best to stage it as though. Yes. As though somebody is coming to take a magazine shoot. But we'll see. I always said I had a budget of nothing to begin with and I've.

Got most of it left. It's one of the best renovation budgets I've ever heard of. Now tell me, what did you, what did you buy it for, Stacy?

406.

And what do you. And what have you spent on it?

I've spent at. I've spent 100 grand.

And what are we hoping for? What's, what's the value? Tell us next week.

Well, oh well, what's the comparables I'm hoping for above 600.

Great.

And look, if I get that, I'll be pleased, I should hope. Yes, well, that's right. And I can only stress again that we've done things because it's our primary residence that you wouldn't do if you're just holding onto it and popping some tenants in. You'd stick with your wonky floors and a few other things. But we've definitely spent. We've spent some hard cash on low return items. But we're the kind of people who like everything, who like it to be done right.

Yes.

And it. And of all the homes I've lived in and I've lived in New York City and other places world, it's the most pleasant home to live in that I've ever had. So there's a payoff for us in that that isn't defined in money terms. However, I'm still, I'm still hoping, I'm adamant that I'll get every dollar of that back. I won't lose money. Will I make the. That I would like to make? I would like 650, but I don't think it'll quite get there, to be really honest.

Well, you know, to spend 100 and convert that into 200, that $2 for every dollar is great. And obviously there's holding costs, et cetera. But tell me, are you planning to stay there or you.

Yes, yes, we're planning to stay. It'll definitely be our home for five more years at least.

Great.

We'll just hold onto it no matter what. But we will be in it for about five years at least. And then I have. Once I get through this part of the process, I'll be extrapolating the future a little bit.

Perfect.

Once we know where we land after this.

And you haven't done it easy either. Your husband is a fly in, fly out person. So you've done this.

Yeah, he's a project manager for one of Melbourne's larger universities. And so he's not flying fly out. But his days are long and he's been on the road and he's wonderful. There's nothing he can't fix. But he turned out to be unavailable. In that year. They had a. A massive project that just took off.

Yeah.

And I ended up. I've installed architraves, I've done all sorts of things.

I think I know who's doing my next renovation. John.

It just, you know, I've learned things that I couldn't have believed I would learn. I mean, I'm so satisfied with it. Although we're tired.

I honestly think that's a great thing to do because even if you don't do that ever again, you know how to ask for things with the trades. You Know how things should be done. It's a great apprenticeship to go through it once or twice and do it all yourself.

The learning curve's been amazing. And that's exactly true because I understand every corner of the building. So if I went into buying another building or even any other home like this, I'm another step forward in my education and that's worth something that's not definable in many terms also.

Yeah, it'll save you a lot of.

Money in the long run.

You know, as you say, you know, it's oozing charm. Those old properties also ooze problems. And knowing where the problems are and where to fix them and just simple things. You know, I know that I've had, you know, lived in a property known, intimately renovated it and had, you know, moved out, moved state, had the rental agent ring up and say things like, the electricity to the oven doesn't work. You know, the oven's broken. And the oven only went in six months ago. Like, you know, well, now there's a switch up on the wall. You'll find it here that turns electricity onto the oven. Oh, the oven's fixed. And all of a sudden that $90 electricians call out fee is saved, you know, so knowing just those simple things about the property and being so hands on as well kind of helps in the longo to.

Yes. So when you're looking at the next one, you know, you know, you see the cracks in the wall and you know how to fix it.

Yes, that's right. And we. And if you were in the same region, My team of trades now are. I know them well. I'm so much further ahead than when I came into the neighborhood and I didn't know anyone.

Yep, yep, Absolutely.

And you know where to source things, Even if it just comes down to a call to one of those tradespeople and you know that they know what they're talking about.

So you can go from there. No, absolutely.

We did do extra things on our property because it's for us. We retrofitted some double glazing to our main bedroom into the heritage window. So you can't tell that it's still a heritage window completely. There's nothing butchered about it. But it's now double glazed. And because we found someone who. Who is an environmentalist and who is interested in saving the world one window at a time in terms of thermal mass and things like that. The cost of that actual double glazed panel was equivalent to buying one sheet of hash lamb that could go in. But because we did it ourselves. It was the same price. So there was just that little payoff in the things we've done that have resulted in a really lovely building to.

Live in.

At what's a reasonable cost for us as ownership, not as investors.

On this particular one, but it's investment grade and you knew, you did the research, as if it could be an investment. And, you know, I talk to people all the time that, you know, say, is it possible to buy at 400,000 or 450? You know, the market's gone and, you know, you went down to Geelong and from Melbourne, Geelong, to find a place that was affordable that you can afford. And I think, you know, a lot of the affordability conversations that we have these days are about, I think, was it Bernard Salt saying that the young people should give up having smashed avocado for morning for breakfast and start saving their money? Maybe a little bit harsh, Bernard.

Probably a touch past that now with.

Affordability, but that kind of. If you can't really live where you really want to be, but you want to create a home, sometimes there's some compromises and unfortunately, there can be some travel distance issues and things that you have to give up, but you get to create this beautiful home that you would be twice the price in Melbourne.

Yeah, that's great.

Well, that's it. And it's a lifestyle that you couldn't replicate in that price point. And for my husband, one of his big jobs is here in Geelong now, and he walks to work.

Oh, fabulous.

He's managing a project and he walks to the waterfront of Geelong. So it has panned out beautifully for us with some compromises, but it's 20 minutes from the beach, the city's on out, we're on the CBD fringe. So a lot of people would regard what we live in a city where the city regards us as the fringe, probably. But it's a wonderful lifestyle at a price that you can still manage, because Todd and I had done volunteer work for years. And so we came in as an older couple with small children, starting out with nothing. And I think that's an encouraging aspect too, is that seven years ago this July, we landed back in Australia six months pregnant with 150 bucks in our.

Pocke.

And we started renting. And we made this. You know, we did the best that we could to plan. And so we've had to. We've had to make decisions based on what we did with our earlier years. But some of those skills have come to pay for themselves. I suppose some of those experiences. However, yes, I think that's true that we couldn't. If we'd have hung on trying to get into Melbourne for a family home, it would have been a really long time before we could have managed that in our circumstances.

And what you say is so relevant. You know, I know when I bought my first property I only had a 5% deposit and you know, the mortgage insurance was huge and I had to weigh up how long was it going to take me to save 20%? And you know, I was looking at buying a $425,000 property and to save 20% it would have taken me another four or five years. And in five years time that $425,000 property had grown to 600,000. So I was now in the price point of still only be able to afford the depos on a $400,000 property. But I was about five suburbs out, you know, so it's kind of that opportunity cost as well. And you know, I know this, as I mentioned earlier in this call, you know, there was, there's so many things going on with affordability but you know, when you look at the situation, you look at, you know, I can't afford Sydney, I can't afford Melbourne, potentially I can't afford Brisbane, for instance. But where could I afford. And you know, that affordability push when the Brisbane and the Melbourne and the Sydney market in particular start pulling back. I don't think we're going to have the Central coast and Wollongong and Geelong and Ballarat and Bendigo pulling back as much, you know, because they're still affordable, they're still commutable and people want to create a home. And you know, traditionally we all want to have a home and, and renting forever, it doesn't sit well with a lot of people. So I think, you know, you've moved into a market that has, you know, a lot of, of uplift in it still to come.

Yes. And I was hoping it wouldn't uplift for another year or two, to be honest, because I wanted to get this one out of the way. Grab one more. Yes, grab one more that I could do in the school hours because we're a single income family and it's a great job for if you are a partner who's handy and you can drop the kids off and then go to work and you're prepared to, to get your hands dirty. It's a fantastic job for someone like me, for example. And you know, having the right tools really helps that. I had a chippy who was wonderful. When I first started, he helped me straighten the walls because we tore this place back to the studs. And he did that. And he was a source of wonderful contacts. But then I also got him back about six months later and I worked a week with him. And he said he'd never had the housewife go under the house and hammer some stuff in where he couldn't fit before.

Were you on the saw for him and chopping his.

Yes, yes. Doing everything. Yep, doing everything. And I, by this point, I had already installed some architraves into the heritage architraves inside because Todd, my husband, was just unavailable. And I remember saying to my mother, well, what would I do if Todd had gotten hit by a bus? Thank goodness he didn't. But what would I do if I had this happen? House, my children, no income, really. I would just have to get on with it. And that's what I decided, to just get on with it. And so we did. And the first window I did that was complete. I couldn't sleep that night. I was so excited to have that liberating effect of, you know, I can do this. It was fantastic.

Yeah, it was just great. The fact that you've been through the entire process and you can replicate that and you've learned what to do and, and you're sharing in the community, your story so that you know that other people who are sitting there going, oh, my gosh, you know, I couldn't do this. The fact is, you know, working someone, you can and you've done it. And we just. We're just waiting to rock out that valuation next week.

Oh, well, I hope. Well, let's see if we've got it right. But as long as I haven't done too badly and we've got a beautiful place to live, I think we're still ahead.

Exactly. And a healthy family. We make sure.

That's right.

So the valuer can get well.

That's right. And I think that this. I think the whole story of the things we've done right, and I'm sure I've made some mistakes too, but I think it is replicable for other people. That's really at the end of this. Yes. It's been grueling and I've had to. I've had to sort of claw my way to get information and get help and stretch the budget. I've sprayed light fittings from brass to oil rubbed bronze so they look more current. I've done all sorts of things to stretch the dog, but it is something that can be repeated.

Yes, absolutely.

Yeah, I think that's the upshot of it. So anyway.

And I think once you have that repeatable process, and that's exactly what I did. I wasn't trying to be smart. It was just learning from the little mistakes and just kind of tweaking every time and just replicating and replicating. I think it's when you kind of the people I've spoken to who get a bit boring and they get out there and they go, well, I've done four or five or six. Maybe I'll have a commercial property or maybe I will do something a little bit different out of the box. That's when they run into trouble because it got boring. And I think it's Warren Buffet that says if investing is exciting, you're doing it wrong. Just doing that, kind of getting it right, doing the process, following the steps and creating that perceived value with an actual cost, that's allowing you to make at least $2 of every dollar in a renovation. Magic. You've created magic, Stacy.

Well. Well, let's see. I don't want to put the cart before the horse, but yeah, we'll see how we go. But I think the last time I spoke to you was another evening like this and we were installing a fireplace surround at the time. Well, now I'm leaning in front of it and the little fire is crackling away in the cast iron insert. So it's all pretty good.

Look, I gotta say, you're going to. You will forget the six months of being covered in plaster dust and you know, every piece of, of black clothing you have has marks all over it and you know the kids can't find the shoes and you know they're holding up a door somewhere or something. You forget all of that when you're sitting down in front of the fire in with a nice glass of wine in a few months time and it all feels like easy.

Feels worth it.

Yeah. When you look back at the photos, when you look back at the photos you snapped over the tears, you actually can't believe that you survived it and lived through it and the conditions. And you think, jesus, who lives like this?

I've often thought the same thing. If you could see the photos before you started, you wouldn't start.

No, no, exactly. And I think you know your story. You know, we're talking about price points. We're not talking about million dollar properties, we're talking about buying it. Like 406. And we got Danita who's shared her numbers on in the your property. Success club as well. And, you know, she bought less than, you know, $200,000. So, you know, people are buying these properties and renovating, adding value. You know, you've done it for your home with the plan of, you know, being there for the next five years or so. She did it from a rent of, you. You know, it's. It's just. We just love these success stories. That's why we do what we do, isn't it, Sean? That's good. Well, you're going on our wall.

You may be jealous.

Actually, I'm thinking, oh, that's good.

I have it. I have my success stories one at a time. And you're going up on my wall. I'll send you a phone.

Oh, I'd like to be on the wall maybe, maybe I don't know when that. I don't know how long they tell you after they come visit what they think your place is worth. But, yes, if it turns out well, I'd like to be on your wall.

You definitely. You're on my wall already.

Oh, thanks.

Good. Well, thank you so much for sharing. Sharing your story for everyone, and we definitely want to hear more. And we'll be reporting back on how you went next month.

That sounds really good. Thanks, Jane, for the information and John as well.

Appreciate it. Have a great weekend and don't stress too much about that valuation.

Thank you. I'll be doing all those last tiny little things. Yes, me too. Thanks, both of you. Good night.

There you go.

How good is that story?

Yeah, that's awesome.

I'm Jane. What's your name?

I'm John. And I'm late.

And I'm sorry I told you that We've been working very, very hard on putting together an incredible new your property Success club. Yeah, we are just so excited about it.

I was wondering how much stick you gave me. I was nice as I would have given you.

And this is recorded, so you can go back. I said nice things about him, didn't I, guys?

So I came in and I thought, I wonder how much stick. And I was reading the comments and I'm thinking, thinking, wonderful.

I asked how Easter was. Very relaxing.

Glad he washed it. And I'm thinking, what you mean?

So, Nathan. Nathan lion shirt.

Ah, that's right.

He gave it to us. But he had washed it. Doesn't wash his cap.

No, no. That's the tradition, isn't it? Bad luck if you wash your baggy green, I think.

Yep. I'm gonna go with that.

Yep.

It's smelly. I can tell you that much? He said he's probably one of the only cricketers that wears it every single day of the match. Match. Because it just means so much to me.

Okay, so they all have different things. What was the one?

I think underwear, wasn't it?

Yeah. Was that punter. Same pair of underwear each.

Matt, you're telling the story. I'm not stepping back.

Anyway, we shouldn't. We shouldn't throw these things out there without some.

I had lucky socks. That's as much as I got for netball. But I guess the. The thing is, though, that I was saying, you know, we've spent the last couple of days with our business coach, our mentor, and it's funny, when I was telling one of our community the other day that I wasn't available on Thursday for a call because I was spending time with my mentor, she said, wait a second, you're my mentor. How do you have a mentor and we all have mentors, Let me tell you. My mentor has a mentor.

Does he?

Yeah, he's off to South Africa on a retreat with him.

There you go. And his mentor is pretty. Probably got a mentor.

Yeah, absolutely. So it's just like being a. It's like being a cricket player. We all need a coach and we all need someone to get us through and, you know, a coach is. Is someone who can assist you and keep you on track with what you're trying to do and a mentor, someone who's done it and can show you the way forward. And. And we're. Yeah, we. We spend our money where it's well, well spent.

Well, you spend it for a shortcut, don't you?

It's.

It's jumping ahead.

Why have the trial and error when you can spend a little bit of money? And like I did with the developments, no one is going to take you seriously unless you. You're willing to. I guess even the money is almost a form of commitment or intention that.

Are you all in?

Yeah. Are you all in? So.

Yep.

I think it's a great thing. And really, it's just. It makes sense. It's just a shortcut.

Now, I did suggest that I probably was going to get in trouble for mentioning that we were going to be doing a webinar soon with some really interesting topics and we had a chat about some of the topics.

Yeah.

But can I let the cat out of the bag about where we were on Monday?

Yeah, go for it.

Can I? Yep. Okay. So. And remind me, I know it's been a big week. Big week. Okay. Well, you know, we have heard, we have heard your call and cry to, to be able to hang out and hang out with like minded people.

Now that Monday. Yep.

And, and come and have a chat to us and we are putting together an event and at this stage I haven't got any much more detail other than it's in Melbourne. It will be at the Sheraton Nice venue, 29th of July. So book away that Saturday because 29th of July there'll be limited tickets. But we are, we are just so excited. We are packing together the most amazing day and everyone, every time we've been to different states with the work running a hotspotting workshop for you know, eight to 10 people. We've kind of had people going oh if you're coming to Brisbane, come say hello. And it was funny because I spoke to someone during the week and she said oh you know, well I missed you in Brisbane last, the Friday night before your last workshop she said but I had the plan of yelling out fire, closing the door and locking you and John together so I could go through my strategy. So I know that you know it's nice to sit down and have a chat to people, have a drink and, and, and get to get together with some like minded people.

So the secret this has been on the people have been asking you for this for many, many years.

2012. I think the first people started saying can we have an event? But anyhow, so we are about to do this.

Yeah. Found a really good venue for a lot of searching.

Gosh, we're so excited.

Yep. It's gonna be fantastic.

So I just have to find someone to, to give us some great freebies I reckon. Anyone have any data? Anyone know anyone at Bunnings? Give me ahoy. We'd like an introduction production. So anyhow that is, that is some pretty exciting news that we're working on. And, and also as I said we're really looking forward to welcoming our new students in the ultimate guide to Renovation and club members. So it's going to be really exciting. Watch your emails because there's some really great stuff that's about to come out.

Yeah, that's right. Did you let on about the club as well? No, no. Oh, there you go. Yeah, lots of great things coming. Isn't there like lots and lots of great things.

Oh, it's too much to tell you. Okay, so let's, let's get on to a question. Does anyone else question?

Yeah, I've got a question here from. No, no, had that one already.

Yep.

Okay. Nina says can you Give me an example of a $500 garden revamp that looks like a $2,000.

Well, Nina, I was hoping no one would pick up on that. And as you've gone, hopefully that you have the recording of this. But when I was saying that, you know, if the valuer has said that the, you know, there's about $2,000 worth of work to be done on the landscaping and you know, you can pull it off at 500. There might be the ability for instance to buy younger stock. So trees and plants that are youngest that you can actually plant sooner, earlier in the renovation. But actually, you know, can, can grow.

Yeah.

So there can be quite a considerable price difference with that. And also to actually get a landscape gardener in at you know, you know, how many hundreds a day.

Yeah.

And do it yourself can be quite.

Liberating, I reckon, if you think what's the biggest amount of space in it. So inside it's painting like painting just because it, it's square meter wise. It's the best bang for buck. Changes the room, you know, absolutely like that. Outside it's turf. If you can put turf down. And turf's cheaper than you think a lot of the times. Yeah, you can put turf down even if it's a smaller areas and maybe you divvy it up with some stone paths or something like that, that makes a huge difference because it's a lot of area and yeah. And it looks great at tuning uniform. The other thing I like like that is black dyed mulch, which also is pretty inexpensive. Put that on your garden beds and a couple. Even if you've got small immature plants like you know, like a red cordyline or something, you know, yuccas and those kind of things.

They, they really sturdy rental properties. Yuccas and those kind of things too.

Yeah, they're great architectural plants.

Those, those of you in the Ultimate Guide to Renovation. The quick quote, calculate. There's actually a whole section there to help you quote out your landscaping and the yuccas and all of those plants are included in that. But you know, just simple things like you know, spraying concrete, cleaning concrete, hiring your own water jet cleaner. I saw Audi had a really great deal on one last weekend. I was so tempted, but I've got nothing to clean. And if I keep bringing things home, my husband's like, gotta go. This is such a great deal. It grows online. It's like we only need so many blinds.

There you go. Sassy. Just, just turf the front yard for 150 bucks.

Oh, she just did that. So there you go. So it is a lot cheaper, you know, and just. And carrying on the color scheme too, you know, the fence matches the facade of the property. If you have to render, maybe just rendering the front of the property, not the entire property, you know, it's about that.

And one way to do that is paying for a render to do the front and then bagging the side yourself, which you wear some holes in your hands. But after a few walls. And the trick with anything like that, just as tip. Start at the back, start at the furtherest, darkest place away and by the time you reach the front of the house, you'll be an expert.

Oh, okay. So where it's in the dark shadow. Yeah, no one's really going to check it out now. I see.

But bagging, for instance, you just get, you make a mix up of a sludge of basically bricky sand, lime and cement and you get a soft handle broom, just the broom handle, and you dip it into your barrow of sludge and then you just do circles on the wall. And that's what bagging is. So anyone can do it. It's not a skilled thing. Wear gloves because the line meets into your hands.

Yep.

And you can do that for instance, on the back of the house. Get the front of the house rendered, paint it yourself.

There's a special render paint too, isn't there?

Yeah, yeah. And you know, if you, if you're going the sprayed route too, it's really easy to spray render if you're willing to spend, you know, a day taping up Y and things like that can, yeah. Massively lift the house. Particularly if it's a dated brick. Like if you've got, oh, red clinkers or you know, brown bricks from the 70s and that kind of thing that can really, really lift a house for not a lot.

Yeah. It's funny, I was walking past a house the other day and I was looking, I was looking at the picket fence. I thought there's something really funny going on here. And I realized they'd sprayed the picket fence and where the brakes were, it was actually sprayed on the ground. So it's like, it's like there's something. It's like it's not a shadow. What is it? It's like, oh, shadow. Yeah. So they kind of sprayed. Interesting. Yeah. And I was reading this book once in New Zealand and they said this guy was buying in, I don't know, must have been turf warfare kind of areas. And his idea was when you build your picket fence, put the pickets at least 20cm, 10-20cm apart, because the graffitiists don't have a good wall to paint on. But if they're really close to the picket fence, they can actually see their tail tags. I was like, oh, my gosh, the things that you have to know about when renovation. I'm sure there's some areas of Australia.

So tough over there, you've got to put your pickets six inches above.

So there you go. But, yeah, so, Sunina, I hope that that helps, but, you know, hello to.

Any Kiwis on the call, by the way.

Yeah, Happy Anzac Day. But with the, you know, the valuer potentially can look at, at what's the cost of getting a landscape in here and landscape a property compared to what, you know, you can do yourself? And I know, you know, at one stage of my very first property, my mother by circumstance knew Jamie Durie and she was at a decorating show and he said, hey, come and check out my daughter's backyard and give her some ideas. And he said, oh, it'd be really handy being so close to, you know, parking difficulties to have a, a stack, a hydraulic stack of carpet park in the back so you can actually have two or three cars. And we're like, right. And he obviously saw my face and said, what's your budget? And I said, doubled it and said, $1,000. And he went, take that tree out. And he left. And he said, my clients spend 20% of the value of their property on the garden. I was like, definitely not going to be one of your clients, I guess. So there you go. Hope that helps you, Nina. All right, who else has a question here? I can see lots of familiar, familiar faces. I was going to say familiar names. I know that many of you have many interesting things going on at the moment.

Now, while we're waiting, I'll give you another tip with painting the facade. If you're property, when it comes to painting the, the fascia and the gutter, paint them the same color. Your face is the bit that the gutter see, sits on. So if you've got like a. Yeah, the, the timber bit that. So you've got your eve of your house, which comes out from your wall. It's like that little ceiling that runs around. You know, most house. Houses have a neve comes out from the wall and then. So that sits horizontally and then vertically on, on the end of that is your fascia and then your gutter sits against your fascia. But if you've got a kind of gutter that's not A hundred percent. And even doesn't even have to be that old to. For this. And you're going to paint your gutter. Paint your gutter and your fascia the same color and then you don't get that awful up and down look of the gutter on the fascia because you've got two different colors. So it's a really easy one.

Yeah, great tip. Because we all know it's about perceived value. Perceived value. And gosh, what's the word? I'm talking thinking about the upfront street appeal. Street appeal. You know, you really gain a lot of interest for renters and buyers and value valuers of what they see as soon as they walk in that area.

So another good cheat, one I thought of for the landscaping is if you've got an old concrete drive, and this works really well, if you've got one of those drives that have, you know, when they concrete the tire marks. So like you say you've got two strips of concrete and then a bunch of, you know, natty grass in between it.

I was gonna say weeds.

Yeah, yeah, weeds.

Some people put daisies. I like that look.

Yeah, yeah, yeah. Well, a way you can get rid of that or overcome that quite cheaply is you. If you put some edging in, which you can do with just some, you know, you know, say 80 mil hardwood edging that you use garden edging, and then you can put some road base straight over that concrete.

Yeah.

You know, you could take your wheat, put a bit of weed killer in first. But so if. And road base is actually quite cheap. So you can get your truck just backs up the driveway and just dumps, you know, tons of it there, and you spread it out and then you get your whacker. Have you used a whacker before?

I have. I. I actually used a whacker on line size.

Oh, did you?

Yeah. What did you whack? Building. We were building a kind of a barrier for the trucks and to separate light vehicles and vehicles. And I'd given the guys a job and they said you always say you shouldn't do something you haven't done yourself. Come go at the wacker. So I felt like.

So wacker, for those that don't know, it looks like a lawnmower, but it's got a plastic plate at the bottom of it and it just jumps up and down. It's actually. Its proper name is a plate compactor, I think. So you. You basically, you level out all your stones over the concrete or your crushed rock or row base, and then you run up and down it with the whacker and it compacts it all down and you spray a bit of water on it. And you go back over with the whacker again and put it all down. And at the end, if you'd like to give it a nice finish, you can put like a Tuscan stone over the top of it. Maybe 50 mil or 100 mil if you. If you're feeling generous or. In Victoria, we call it Liddell topping. Actually, I think it's Liddell toppings in New South. No, Scoria. Is that. Scoria is the volcanic. Yeah, volcanic stone. Yeah. Very popular in the 70s.

It is. And a lot of Italian houses have it, don't they?

Yeah.

I, as a quarry engineer for many years, we did a lot of blasting around Scoria. Oh, did you tell you how to blast it?

Okay.

How to create it?

You could probably tell us the makeup of Scoria.

Scoria, could you?

The geology.

I can't. Well, there's scoria and there's, like, granite. And one is. Comes out very, very quickly and cools very quickly and has small crystals. And the other one comes out slowly and has, you know, the air tuft. And so granite. And you see, granite has very, very small crystals. And that's because it comes out and it's. It's actually cooled very quickly. There you go.

There you go.

And the scoria is blown out basically as tuft and stuff. And it's usually further away from the pitted.

Yeah.

So, yeah, out near the airport in Melbourne, there's some beautiful Scoria. Yeah, I actually took. I actually took a trailer out there once and filled it up with white rocks from the. They had. Were selling white rocks as well. I had white rocks. And they think the thing. And I hadn't realized. I hadn't thought about what the weight would be on the trailer. And there was this. The tires were flat by the time we got home. And I never was loaned to that trailer again. By the owner.

No.

So anyhow, yeah, it's pretty heavy. Yeah. Didn't realize. I just wanted to fill it all up. Okay.

Any.

Any questions?

No hands. Oh, here we go. Question. All right, let me have a go at this. I have a question with regards to finance. If you wanted to purchase a property to renovate with the aim of buy and hold, but didn't have enough money to renovate immediately, would it still be okay UK to buy the property, hold it, and then renovate it later on? That's from Wayne.

Wayne, I love this question. If you've got A microphone, mate. Wayne. Because we might even try to open up the mic for you. But yes, he does.

There we go.

Okay. Wayne. Hey, Wayne, how you going?

Good, thanks. Can you hear me?

Yeah, yeah, loud and clear.

Really good. So when you're thinking about, concerned about having a property that you potentially can't renovate straight away just because you don't have the funds to do it.

Yeah. Like I was looking at my situation and I'd probably have enough to purchase the property, but I. When I was trying to look at the costs and going through, you know, 10% of the value and whatnot.

Sure.

I realized I was like, oh, wait, I don't actually have enough for that. I'd probably need maybe that six months or something to perhaps get that money to do the renovation justice, I suppose. And of course, I'm still new to this game and I was thinking, well, can I hold it? Should I put some tenants in with the short lease something, or, you know, I guess I have something that's actually in livable condition to that. Of course. But yeah, I was also thinking about what is the logistics. What, what's sort of the best way to go about that.

Perfect. Now just give me an idea of your kind of price point and where you're kind of looking.

Yeah, well, my price point at the moment, I was looking around 300 to $350,000. Just depends how much I'm able to save.

Sure.

I'm looking around Queensland, probably around Moreton Bay.

Okay. That Deception Bay kind of area.

Yeah. And perhaps Ipswich, maybe around that area too. So.

Perfect. Now the reason that I think this is such a great question is that often I have the conversations with people where they say, for instance, I've got enough to buy a $300,000 property, maybe a 10% deposit, 30,000, 12,000 for, for stamp duty, and a couple thousand for inspections and solicitors fees. So they've got $45,000. And the question comes back to, well, should I buy it like a $200,000 property and use up 25 or $30,000 in buying costs and then having the money to renovate straight away, or shall I go to the maximum borrowing capacity that is, well, not borrowing capacity. My limit that I limited the cash that I have because most people are either limited by one of two things when buying a property, their borrowing capacity or the cash they have. So you can have someone who has a million dollar borrowing capacity, but if they've only got $50,000 in the bank, they're not going to be able to buy A million dollar property. So it's either one of those two things. So I've always thought buy the best possible property which is used the most expensive. Expensive. Buy the best possible property that you can afford, when you can afford it. And as you said, you know, you have to have some livability of the property. So we're not talking about buying something that has, you know, the kitchen and bathroom strip stripped out when you purchase it. We're talking about something that is livable and potentially has had renters in it or is currently rented and maintaining that. Because often people buy properties and they're buying a properties with renters in place place. And you know, one of the strategies is, you know, I want to kick the tenants out so that I can renovate the property. And they can't necessarily do that straight away. So sometimes people are forced into that position where they do have to delay the renovation, but by the want of the, the fact that you, if you spent the money that you have now and maybe save, you know, two and a half, $3,000 and do some of these, you know, when I talk about renovation, I talk about, about you know, doing kind of like the, the rejuvenation which is that full renovation that you know, the kitchen, bathroom, we have, you know, the repair kind of renovation and we, there's kind of like some of those renovations, the refresh which is just, you know, some elbow grease. So you're getting in there and cleaning you might spend, you know, you may not have the $3,000 budget straight up to get the house painted by someone else. It might be that you and your mates to have a good go over the weekend and go and buy, you know, the paint and you do a coup slabs of beer and a barbecue and get them all in, but paint the place up, make it look presentable. Changing shower curtains and changing toilet seats and maybe gardening. That elbow grease kind of stuff that requires a toolbox, not an entire refit. You can actually have a property quite presentable. And I mean we do this very regularly. Our tenants usually stay for three to four years, but at the end of that period you've got a period of time there. It's not, you can't really outsource a handyman to go in and fix those little things because some of it's cleaning and some it's just, you know, making sure that everything works and it's kind of like doing that up front. So just making sure that it's, it's presentable and is, is finished, you know, how you want it to Be. And you know, if there were tenants in there, they should have steam cleaned the carpet before they left. And just making sure when you're doing that part post or pre settlement inspection on the day of settlement that, you know, all of those things that you wanted to have done, have been done. Or you might be able to say, you know, it might be a negotiation thing, you know, to get them to repair something rather, you know, for the price that they want before that you. Before you move in. So there might just be some of those kind of things that you could do. But you know, I'm all for delaying the renovation if you need to. And have you had a chance to read my book at all, Wayne, your property successful renovation.

I'm probably about 30, 40%. I'm in. I'm in this. I'm in the. About the suburb selection.

Perfect. Yeah. So you know the whole philosophy that basically there's only two properties. One renovation, put a million bucks in the bank. And the premise behind that is, for instance, start with the home from this instance or day zero with some equal buy a property and it's not until year three that you have the money from the equity to actually renovate that property. So renovate the property in year three and then in year five have the equity to buy the second property and then just get on with life.

And that's what a good location will do for you too.

Yeah, it give you that uplift in the equity so that you don't have to spend the six months on potentially saving your money because your savings in your cash is now your cash buffer where if you in six months could make that money in an equity gain, you'd much rather use the equity in that property. And that's why having that finance with the right prop. Right lender is important as well, because you want to be able to go back and tap into that to do the renovation. You've put your first $45,000 in, for instance, in savings. You shouldn't really, if you do it right, have to put your savings in again to buy subsequent properties or renovate with.

Yeah, yeah, I do, I do. Excuse me. I do wonder about the whole sort of changing the situation with the tightening regulations and stuff too, how that's gonna play out over the next year or two. I mean, I did envisage an issue, but I have had some issues when it's come to getting the finances and stuff too. And even the last sort of six months or so, looking at that sort of have been stuck around that. Yeah, that stage I Won't go into any too much detail. But yeah, I think it definitely the idea would be to get that right location to get that equity because definitely equity faster than saving it.

Yeah, absolutely.

Yep.

And I mean, you know, Wayne, not, you know, the kind of concerns you have about lending completely legitimate, you know, can you get that money out in the future? And you need to kind of, we kind of working on backup plans. But, but often I speak to people who bought that first investment property and they knew their strategy was at some stage to, you know, renovate or wait for the property gone up in valleys to take some money out to do something with again. But when they've come down to choose the lender that they've gone to, they've gone to the one that's the cheapest rate that is probably at the top has topped them out at their borrowing capacity. So there is actually never any capacity for them to go back with that lender to get the extra equity out. They would have to refinance. And so, you know, it might have seemed like it was a cheap rate, but in actual fact they purchased at a 90% loan to value ratio with a, you know, $8,000 mortgage insurance bill that six months or 12 months or two years later they have to go and move to another lender, lender and pay that mortgage insurance again because they've already were tapped out the first time. So thinking long term about your finance needs and what your strategy is is imperative because we don't want you to have to go back again and go, well, you know, I've just lost $10,000 in a mortgage insurance kind of transfer. So don't necessarily go for the cheapest lender. Go for the lender that still has capacity with your company, current situation. And what your broker tells you to.

Anticipate, clarify that they pay mortgage insurance on the loan for the investment property or refinancing their own property.

So if they're, if this, we were talking about just one investment property, so you buy it 300,000 and it might be a renovation or it might be growth. So it might be six months or it might be two years that the property's gone from 300,000 to 400,000. So they've bought at 300,000 with a $270,000 loan. So a $30,000 deposit. So 90% loan to value ratio. So 270 divided by 300 is 90% loan to value ratio. So they've paid maybe $8,000 in mortgage insurance because the bank wants you to have that 20% deposit. And then what happens is six months or two years down the track, they go back and go, oh, okay, I want to take to 90% of 400,000 now. And 90% of 400,000 is 360. So they're taking the 270 loan to the 360. So whatever that is. $90,000.

Don't do maths live. As a rule.

Don't do maths live, okay, and $90,000. And they're like, hey, give me the $90,000. They're like, no, no. Your maximum borrowing capacity was the 270. You know, yes, we gave you a 3.8% interest rate, but that was it. You're over with us. So knowing that what your uplift is and making sure that you may be having borrowing capacity capacity up to, you know, $400,000 with the lender that you're with gives you the confidence that, you know, without policies changing and all these other things going on, that at least from a borrowing capacity point of view, you've got the capacity to go there. So it's worth a 4.5% interest rate to do that, you know, because the $8,000 mortgage insurance you paid with lender A, if you have to now go to lender B, all of a sudden you've had another credit hit on your credit file within six months. And we know we need to protect that. But the new lender B goes, oh, you want 90% of $400,000, do you? That will be now a $10,000 mortgage insurance bill. And speak to your accountant about this, because mortgage insurance is a borrowing cost, and if you did pay it up front, it could be deductible over, you know, five years or whatever the borrowing cost is. But I did a refinance of my first property originally, and I could make a claim back on some of that mortgage insurance. So there could be a bit of a claim in there too. Don't know if rules have changed. I'm not an accountant. You heard the disclaimer that I. Oh.

It'S good you did the disclaimer.

I remember I kind of gave a bit of a disclaimer going, I'm not an accountant. Real estate agent. There's still all these things. Yeah, but. But yeah, that could be something to check. Like there could be some rebate, but make sure you just get it the right lender for the strategy that you have planned.

So I guess when it comes to the revaluations and the refinancing, the idea will be trying to stay with that same lender to avoid a lot of those costs.

Absolutely.

So once they've seen that new value, then that's when you try to negotiate that, provided that you know, you actually have that capacity to grow.

And the other thing is lenders at the moment, you know, they've got all of the, these strict requirements on hurdles they have to keep under and whatever. CBAs closed their books for refinancing investment loans. It's absolutely closed. And we had one client who was refinancing their home and let's just say the loan was $800,000 and they were taking an extra hundred thousand dollar out for just investment purposes. CBA cancelled the entire set settlement even though the loan was against the home because they couldn't afford to put that extra hundred thousand dollars on top of their current investment lending. So I spoke to the Australian manager for CBA and said, you know, give us a break, what's going on? They said we would much rather at the moment pay the difference in the interest rate and compensate someone who's refinancing to us and delay them a month or two then actually have the fine that APRA will apply to us if we go over 10% of investment level lending.

That's a good point then because I was thinking I'd have, I think I have to talk to my broker about that because I have to say look, this is the situation, looking to do that and trying to avoid that. I mean, of course the banks may change over time with their policies but that's a good point. Didn't think about that. I mean I knew about it but I didn't think about it.

It's kind of thinking long term you have to share your strategy with your broker. So for instance, once I had a client and we went through all of his finance for him and we were setting up a loan and it was very much a rate conversation, rate driven because it was going to be an investment property, it was going to have it and do nothing to it for a long period of time and bought a property on the central coast and then came back and said, look, we've decided to move there, we're going to build a granny flat. And this one lender, Bank west had a 60% loan to value ratio that for two properties on one title, so their maximum was 60% but they had bought at 90%. So then to borrow the subsequent money to build the granny flat, had to move lenders and they'd only just paid $10,000 in mortgage insurance. So you need to talk to your mortgage broker or your bank about what your strategy is so that they can put you in the right lender for not just today's rates, but for what you're trying to achieve.

Yeah, definitely. I just hope that one day they don't become like England, where it's like income to loan ratios and whatnot. That would be.

I know, I know there's. I mean, you look around the world and as I said, you know, in New zealand they're doing 60% LVRs for investors. And if you have more than five properties, it's a commercial loan. You know, I think there's 60% in, as you said in England as well. And in the us everyone has a different interest rate based on their credit score. So they're not going to quote you a 4% interest rate. It's going to be. Tell us your credit score now, we'll tell you what we're going to give you the interest rate for. So, you know, it's, it's amazingly different across the world.

Yeah.

So anyhow, Wayne, I hope that helps. And yeah, let us know how you go with your purchase in the, in the Facebook page.

We'll do it. No problems. Thank you for your help.

Bye.

Bye.

Thanks, Wayne.

Thank you.

Oh, good. So what did I see far ahead here somewhere? How he said far ahead.

Fabulous. There we go.

Hello, Fahad.

Hi, John.

Hey. Hey.

Good to hear from you.

Thank you very much. Luke. I have a question. I was actually out during the webinar, unfortunately. Well, I can't back.

So is John. Everyone's abandoning me. How can we help?

So the question is, you know, I've been in that Melbourne hotspotting and I have set up my area on the ecologic and I'm trying to find a property that I want to buy in Braybrook and in Maidstone, but there is lack of stock. Like I can't find anything.

Yep.

And I don't know what to do. Like I look at every night, I can't find any property. Maybe one or two. And it's been like that for the past two, three, four weeks. So any suggestion on it?

I might jump in with one just before you give the actual proper good one. Have you been doing the opens, Fahad, like we were talking about on the bus trip, going through all the open for inspections and all that kind of stuff?

Well, I live in Queensland, so I can't do that.

Ah, that's right. Yeah. That makes it a bit tough. Doesn't might be then because where I was going with that is that the, you know, doing that due diligence on the ground. One of the big benefits of going through all of the open for inspection, even the properties that you're not actually looking to purchase, is just building those relationships with the agents and giving out your sheet and saying, this is exactly what I'm looking for. And, and then you get the call back on Monday and Tuesday because often the agents just do the callbacks and they don't follow up with other people, depending on how much value they place on relationships. And actually there's a. Kevin Turner commented a lot on this on the latest.

Podcast which came out today.

Yeah, really good podcast. Lots of information about how agents work, the internal working of a agency, which is really handy to know as an investor. But I'm thinking now that I remembered you are in Queensland and the properties in Victoria, it might even be worth just doing that on the phone, just doing a regular ring around, you know, the equivalent of the agents Monday, Tuesday, check in and calling back in and saying, hey, I left you the. My criteria last week. I'm just checking if any properties came in and just keeping front of mind with all of those agents because I always think when I'm looking for a property in an area, I have to be able to compete at the level that a buyer's agent can. So I need to, as soon as that type of property comes up, I want to be the first person on that, on that agent's mind. Oh, that property equals John, you know, that property equals far. So that's, that's the way I try and do it to try. And it doesn't always mean you'll get it off market, but sometimes it might mean that it's not going to occur. Auction and you can just get in quick. And if it matches, if you know your strategy and you know your criteria really solidly and the right property comes along, then you should be able to make a really quick decision and potentially beat other buyers while they're still kind of meandering and taking weeks to make up their mind.

I agree, absolutely what he said. But in addition to that, you know, John makes a really good point about, you know, getting to know those agents and getting, getting to know the properties and building up the relationships. But doing it remotely can be difficult, as we know. And you know, the waiting two or three weeks and not seeing things come on the market, you know, we're, we're kind of heading into winter. We've had the first rainy day yesterday in Melbourne, which is, I don't know, no one's pretty. No one's happy about it. But when we, when you start looking at paper these areas and building up the relationship with the agents and all of those things, if you're getting to a point where all of a sudden the properties were $600,000 and the similar properties are now 62630 it would have been and it's probably time to act then engaging a buyer's agent and paying them the $10,000 and actually getting them as those suburb area experts in those areas, getting them, engaging them to find the property for you. And B, I mean I know that you're. Well, you're in the Brisbane hotspotting workshop too, aren't you?

Yes, I have been in that one.

And the Melbourne one and which we find a lot of people come back so they, you're going to walk away with a list of five suburbs and where to buy. But you know, one of, one of the people who was in the Melbourne, sorry from Melbourne in the Brisbane workshop with you engaged a buyer's agent straight after that workshop and said this is the specific suburb that I want. These are the streets that we came up up with in the workshop. I want to buy in this area. And they did have to kind of be very specific and keep the buyer's agent on track.

In the buyer's agent went really, really.

You'Ve been talking to Jane, haven't you and you know, keep them on track. But they did find a property, they did engage someone who could help them in that area. They got it and the property's gone up in value by tens of thousands of dollars since they've purchased it. So sometimes in those fast moving markets if you've really done that research that distance can be a bit of an issue if you can't build up those relationships and it can be a problem. And I know you've got access to the RP Data professional through our.

Link.

Our contract And I mean the good thing with that if people are listening and thinking about RP Data Professional is is that, you know, one of the things that we offer that others don't is you can turn it on every month month or as you need it. So you don't need to commit to that.

Are you going to show a territory?

I'm going to show.

Yeah, please.

Oh, I don't know. So just give us for Braybrook, give us your criteria. A house, three bedrooms.

Yes, house, three bedroom size block.

Yes. What size block are we like looking at?

About.

I was looking at about 4 to 500 square meter.

Okay, so this is. So Farhad's gone through and got the typical size block, the typical property, using some census data. We're waiting for the new stuff and the house. So we can see there's 3,800 properties. There's only 102 that fit this criteria in this area, which seems a small percentage to me. Farhad, I'm not sure if it's the land size that may not be typical for the area, but 100 out of 3,000 doesn't represent to me a huge percentage.

So what I'm missing, actually I haven't put any size. I've been just looking at those sweet spots that we actually chose, looking at any house that any is on the market and it gives me maybe just a few.

Okay, all right. I'm just.

So I went and looked at every property on that suburb on realestate.com au and I actually found a few more.

More. Okay.

But then again, they were an auction or like there were still not many, I would say.

So I can see here three bedroom house is typical. A separate house is typical. So that's all good. And if I jump over to SQM research and I look at Braybrook, just want to get up some typical size blocks so I can just find what would be typical. Okay, so 600 square meters is where it said. Yep, you're right. Not recent, not a lot of recent sales here. But 600 square meters is kind of up to, you know, 700. So 500 to 700 I would put down as the, the kind of typical range which should be. Bring up more. Yep. So we've got some more coming through we've got on the market at the moment. And there's six. So these may not be in that sweet spot that you mentioned that you're specifically trying to target, but these are properties that are on the market at the moment. But the interesting thing about this is that there's six properties on the market that fit this criteria we've just put in here. But if we go back to the properties, there's actually 500,000. Now, you know, we talked about a sweet spot and, and that sweet spots are around, you know, some of those special criteria that we've come up with previously. And I don't even know if I've got Braybrook here, but you can go and save that territory as, as I have done that. Yep. As Farhad has done and then comes come back with the territory and redefining in that territory. So we've got a, a territory here that I'LL just edit so that you can have a look at it. So where have I got here? So if I just edit this. So I've defined just some an area with a number of streets that kind of fit my criteria. And so within that area there's you know, 500 or so properties. Just gonna have to move this a bit so I can get up sneaky. And so I've got. So if I need to refine that search now to three bedroom houses on four. To 600 meters, 700 meter square properties. So we've got 500 within that sweet spot. And now we're down to now one of the tactics and if you're on the ground, one of the tactics that you could potentially use is going in and you know, door knocking or dropping off in the letterbox. And we've had students use this territory search that we've just shown and the tutorial as well that you can follow that have gone through and actually use this kind of search to allow them to do drop specifically these properties and say if you are thinking about purchasing a property, give you a little tip.

For that one too that I heard recently because it can be quite nerve wracking going up to people's houses and asking them to, you know, knock, knock, knock and you want to sell your house kind of thing. So one technique we heard recently, I can't remember we heard this Jane. Someone was telling us at one of the workshops, I think that they go up and they just say there's a house for sale down the street or there's a house for sale around the corner.

Corner.

Thinking of moving to the area, you know, can you tell me anything about it? You know what, what's, what do you like about living in the area? And it just starts the conversation and if they are inclined to selling, they'll bring it up themselves or otherwise you perhaps might drop it in there that you know, well, if you, if, if this house doesn't work out, if you're ever thinking of selling, here's my number.

Yeah, that's a really good it's soft approach, isn't it? Rather than I'm here to buy a house. There's a tab here too. If I had this finance tab and this is an interesting tab. I mean we're giving you access to RPDA Professional which is really for real estate agents and mortgage brokers. But this finance tab here actually for mortgage brokers who are uber efficient and if they go down to this high equity thing here, it's properties that were purchased six and a half to eight years ago. So these are people that of those 97 properties, these are a further kind of refined search that we're now looking at. There's seven of these that have actually been owned for between six and a half and eight years. Now we know that these properties have probably doubled in value in that period of time. So you're not targeting the people that have recently purchased in the last couple of years and, you know, have got grand plans of where they are. They're people who've had the properties for a period of time. So you can actually use that tab to actually see the properties that have been there for a while as well.

So if you had another. If, like, if you were interested in dual lock or splitters, you could then target via the square meters as well. So, yeah, it's a good way of you can combine some stuff and start. Start knocking on some doors.

So that, that's something as well. But, but I guess my, my not being on the ground, my concern would be the market start moving without you. It's probably time to get a buyer's agent involved.

Yeah, I think you've either got a good. You've either got to work it like a buyer's agent or get one, you know, somebody.

Pardon me, do you know a good buyer agent?

I do, I do. I will remind. Email me tomorrow and I will send you details of a couple of buyer's agents that we, we know that look after our clients very well.

Oh, wonderful. Thank you very much.

My pleasure. Absolutely. If I had. And, but yeah, that the using what you're doing and using the RP data, setting up that territory, you know, just taking this just to a next little level. For those of the you are watching this and who are on the ground and can potentially, you know, do a bit of door knocking or doing a bit of selective stuff. There's some really great power behind what you can do here.

It's great. It's another shortcut.

But let us know how you go. Farhad, we're really keen to help you out and make sure that you get that property.

Yeah, okay.

Thank you. I appreciate it.

Oh, pleasure.

See ya.

See ya.

Now, let me just see how to. I can't see mute there, can you? Seems to have gone away. Oh, there it is. Yep, there we go. Okay, Bindi has a question. Let's see if Bindi's mic is working.

Hey, Bindi, how you going? Can you hear me? Yeah, loud and clear. You must have locked yourself away in a room, have you? Yeah, I'm in my office. It's very tidy. Well, we're in the middle of renovating our office so we won't have that conversation. So how may we help you this evening? Well, I'm looking at doing a flip in Newcastle and I'm just. I want to make sure that because I'm in a regional area, I certainly don't buy something or sell something over the medium house price for the local government area. And I'm also stuck in a bit of analysis paralysis and selecting my suburbs. I think I just need a bit of a push along. So tell me you're looking to buy as an investment and you live in Newcastle? We move around. So we'll back come currently will be here until the end of the year. Yep. And I just wanted to flip a property as a sort of thing I've just wanted to do. So I really want to do that this year. Okay. All right. And I gather the question that you're asking is how do you get down to the suburb within Newcastle that you actually put in. Oh, the first thing is how do I find the median value for Newcastle? Like I can find the median values for the suburbs, individual suburbs, but just to look at the region as a whole.

Okay, so what's typical for the region?

Yes. Yeah.

Yep, good question.

Okay, so what is typical for the region? So yeah, it is a good question because it is really difficult to get that individual information sometimes of what's happening happening in an area and because most analysis is done on postcode breakdown rather than actual suburbs. So it can actually include a couple of suburbs. So often you'll find that looking at a region you're not getting the total picture. So let me just think. Where are we.

Is it going to be in the state market report? Maybe.

Yeah. I was just wondering.

That's how we get it for the capital city cities. That's how we get. That's what we always use for Brisbane and Sydney.

Let me. My thought behind getting the medium value is that I just know it's a regional area so I want to be very aware of what the population over all can afford.

Yeah, well it's almost. It's an extension of Jane's, you know, by the median property. It's. It's the median for the city. Taking it a step further.

Okay, let me. There's a couple of. Couple of areas that I think that we might be able to find this in. Now I'm just going to switch back to you. Okay. You're going to see a live kind of. Is this going to be right or not. Question that comes out. So I'm looking at now the Residex National Housing Market Market report, which is very small. Let me see if I can make that bigger. No, I can't. Oh, you taught me something the other day, didn't you?

I don't know if I work. It's on Apple, so I don't know what happens on a PC.

Now this is a problem. We don't have complementary skills, do we? So if I'm looking here at Sydney, so it's talking about Sydney over. Well over. And they're talking about Greater Sydney and we're talking about LGAs and we're talking about suburbs. So once again, the local government area is going to be a collective of councils, so it's not going to pull that up. And the rest of New South Wales, actually, you know what, there could be a couple of places I'd go and find this. The rest of New South Wales is just put all together. So we have absolutely no data here.

State market, is it?

So this is the state market report and we have some price points here for Newcastle. That doesn't really. I mean we've got some few blacks and reds but it doesn't really give us a whole. This is a suburb kind of based one too. So it's not giving us that. Okay, there's a. There's a couple of places that I would look for this. Oh, wow, Bindi, you really, you're really testing me here. You know, where am I going to go for this? I am going to go to the New South Wales Rental Bond.

Board.

These guys put out fabulous reports that no one knows about.

This is where you found the median rent originally? Yeah, before everyone started collating it.

So the rental bond board actually puts out rental bonds. So what we're after is reports here. So we are after. What's the. It's the New South Wales. Where would I look this up? Bond report. All right. Flatmates. New South Wales bonds. Flatmates. All right, so there's actually a rental bond report. So the office estate revenue, maybe they are the ones who are going to have this. So what they actually do is they put out a quarterly report which is actually really very cool. And let me just see. I know that I have one for a course that's. That I did in. Where did I do this? Sydney. I pulled up one. So I'm just going to go and see if I can grab up some information. PowerPoint presentation. Oh, my goodness.

So this is one of.

Hang out there while we actually pull.

This up for the capital cities which is really easy. Before we do the workshop we use it as a pull up the median for say Brisbane and then that becomes our criteria for the workshop because we obviously people have different criteria so we just use the median for the whole city basically. So it's a lot easier if you're in one of the capitals it seems.

Because that just appears not a regional area.

Yeah, that's right. Yep. That just appears in the Residex State market report.

You know where else I would go? I'm just going to try to find these guys as well. And that is Heron Todd White. So Heron Todd White puts out their. Report and they definitely do a mil A what may call it monthly report. Let's just say March 2017 Heron Todd White Month in Review March 2017 Archives because these guys definitely do a review on different download PDF. Tell you what, we always try Bindi we're going to find an answer for you. I hate people walking away without knowing an answer. Okay. Here in Todd White they have thousands of valuers every single month out there doing valuations. So get through the blue which is all commercial. So let's sit down because they definitely do regional information. So I'm just going to show you where that is. So blue. So now we're in residential. They're looking at the property clock. They're telling us that central coast is at the peak, Coffs Harbour and Newcastle at the peak. So we now know they're at the peak for houses. They're going to give an overview of Sydney eastern suburbs. We get down further and further to Illawarra, got Canberra here, here in a West St. George South. So we've got Canberra, Illawarra, Southern Tablelands, Central coast, Newcastle. So sometimes in this commentary take for example Mayfield Houses are smashed through the 500 barrier, neighbouring suburbs 67. So we're back down to the suburb level here and there's nothing there. All right, so what I'm going to do is go scan all the way down to the bottom because sometimes in the just final overviews at the bottom they're going to give us some information about what the median or what's happening in an area is. So let's just look at houses in Newcastle. So it's giving us some information there but once again it's not giving us the numbers that we want. Okay, so that was a good plan that didn't work out all so well. And let me just quickly go through this presentation and find my secret links to something or other. Okay, the bond board, New South Wales Hart Housing. That's where we want to go. All right, so it's New South Wales www.housing.new South Wales wales.govau and I am after a report from them. So let us find out what they call that bond report. Housing bond report.

You'd have another link in your PowerPoint presentation. Might have been sales report though.

No, that is the right link but that was tourists 2016 report. So let's go to the latest issue and let's go to the actual. Not the Excel spreadsheets which I love because you can then turn it into a graph. Okay, December quarter 2016. Bindi, we are on the search here. Let's see if we've got anything about Newcastle in the bond information. So Greater Sydney middle ring, outer ring they've got to the shop shire, they've gone to Cessnock and here we have Newcastle and I still can't. So we've got here. Oh can I. Here we go. So let me see what I'm seeing. So 1, 2, 3 bedroom, 4 bedroom. So they're just giving us a typical median rents that we're looking at here for the different bedrooms. So this is, this is really cool information because you're actually getting the information about what if you could convert a two bedroom to a three bedroom. Now one of the weird things here is they.

Well we could say three bedroom.

Couldn't we often get down to. So this is the rents they often include in it the sales. So they say the typical sale price as well. And I don't know where the bond board gets the sale price from but they also start creating sale price. So here we have sale price and we've got the typical sale price. So we have the median here, first quartile, third quartile and the mean. So let's go down to median for Newcastle. 500,000. Fantastic. Thank you. I feel like a champion.

Yeah, that was good.

Yeah. It's like okay, next challenge, bring it on. So let me, let me just see if I can. No, I can't do that. 500,000. So that's 500,000 and we've got the actual mean of 543. So that gives you an indication that there is some properties that are selling higher than that. So there you go. So what we did is we went to the housing New South Wales government AU and we went to the housing report.

Now you go to the suburb selector software, put in your 500,000.

Yep. And come up with the suburbs within that area that actually fit it in. So that is how We Once you put the Newcastle regional area in your suburb selector software.

Yeah, that's true.

That's right. We are a few weeks away from that, aren't we? Yeah, John, we are. Like it's imminent. It is imminent. I tell you what we have, we've been doing groundbreaking stuff here and we've just literally signed a deal with SQM research in the last few weeks and it turns out getting thousands and thousands of data points for thousands of thousands of software is a big deal. From one lot of software into another. Yeah. And yeah, so we've been hurting people's heads for that. But it's interesting exercise and we're working hard and we hear your calls to have it not just in Capital City. So we're listening to you, Bindi.

Yep.

Thank you. But I wouldn't find out all the information and research knowledge I have now. Yeah, exactly, exactly. So. But don't go for the paralysis by analysis kind of problem. Actually I'm going to update that $500,000 number that I just gave you. I was looking at the all dwellings price. So it does include units. So it's really important, I remember this, really important to go to the non strata, which is the house price. Yep.

Non strata. Okay.

And now they. This report, remember is. I'll go back to it in a second.

What does non strata include? That's not houses.

So all dwellings is houses and units. Non strata is not units. Okay, Yep. So we'll go to this. And so what we're looking at here for Newcastle is 532. 532. 532. And just recalling this, this is the state, this is the quarterly figure for September quarter 2016. So obviously I, you know, they're running a bit behind here in getting the. So sorry, it's the December quarter but the sales data is the September stuff. So we'll be waiting for them to get. Yeah, waiting to get that information out. But this is giving you some, I guess the closest kind of number that you can start tracking as well. So a lot of really good data here and as you can see there, there's actually some spreadsheets you can download and you can start tracking one against the other and graphing them and seeing what the difference is yourself. So some really cool information. And you know, there's all that rural information in here too. For those people who are looking at buying in Duo, for instance, Lorraine, is.

That going to include the central coast?

Oh, Lorraine, Central coast. Let's have a look.

I think she's talking about suburb selector Software.

Oh, suburbs. Like over to you, John.

I'll get back to you on that, Lorraine.

Gosh, how is Lorraine? But yeah, so Bindi, there you go. That's where I would get that data. So as you can see and these kind of bond board information, they collecting the rental data. The New South Wales definitely have the sale data as well. But Heron Todd White, that monthly report centre give you some what's happening in the market and they do give the value as a challenge every month. So it might be find a property under 500,000 or talk about infrastructure or tell us what the first home buyers are after for me. So it's always really interesting. But yeah, this report here from the Department of Housing, that's where I would be going to to get that information. I'm so glad that I could pull that up, John. I hope that helps. Bindi. I'm exhausted. It does, it does. Thank you.

And with that, good night.

Well, you can arrive the to late. I'm leaving now. Yeah, no, thank you very much. Let us know how you go on your search. I will.

See ya.

Good night.

There we go.

Fabulous.

Lots of competition here, says Lorraine.

Yeah, we'll. We're hanging out to hear about your next one. Lorraine, you're on the wall as well.

Yep, absolutely.

Who else?

All right, well, so no more hands up that I can see. Jan. I think we've got all the questions in the comments now.

John. I don't know if I've told everyone how to rate and review our podcast recently.

Have you forgotten to say that?

Yeah, I've got an aim to get to 50 this month, you know.

You did well, last call actually. There was a spike.

There was a spike. So all of you out there that, that followed my instructions and, and found out how to actually rate and review the podcast. You really, really helped, helped us. So, you know, I really appreciate your, you doing that. So I think I should just.

Yeah, put it in again. Put it in again.

Tell them, tell them.

And while you're there, have a listen to this week's episode because oh my.

Gosh, just come out. Yep, it's brand new and it is, it is sensational so, so often that.

You get someone like Kevin Turner that's had so many years in the business and, and, and not to mention just he's like, he's a real estate expert, like with agencies and so on, but he's also interviewed every other expert in every other field for like 15 years. So yeah, you can't top guest will do hard to top him.

I know and look, he's just. He's so generous and, you know, he's interviewed me, gosh, so many times. And he's. He's just been, you know, it's a three to five minute conversation. He's a. An incredible kind of interviewer. We had him on the call for like over an hour and just an.

Hour and a half. Podcast is it.

Oh, well, there you go. So it's a huge podcast and. But the tips that he gives and the information and what goes on behind is so good that you should be rating and reviewing us. So this is how to do it.

Write it for Kevin.

Yeah, do it for Kevin. Get onto your iPhone or your phone phone and go to your little podcast icon and then you'll find down here in this corner the search. So even if you have. Of course, because you do have your property success, as I do on my podcast. Don't worry about that. Go to the search button, type in your property success and what you'll have is the episodes come up. But we want you to click on the actual big picture that says the podcast. So your property success podcast. And then when you get onto that get off the detail thing, get onto the views and click on write a review and you can write any name down. Reno Jane, you don't have to write your real name and just tell us what you think. We are definitely going to get to. I'm planning.

What's your goal?

Well, it's 50 this month and I'm at 41. I need nine more. And you know me, I'm all big on goals.

Yeah, that's right.

So help me achieve my goals, guys, and I'll help you achieve yours. That'll be a good trade. So. And tell your friends about it. We're really proud about this. We've got. We're interviewing an incredible person tomorrow.

Yeah.

We've got Monday. If someone even better, you know, the next couple of weeks. Someone even better and better. And you won't know who I'm talking about because I haven't told you which one. So it's all. It's all very good. So. So, guys, I think we might wrap up here. Yep. We're. And let you get on with life and. And everything. And as I said, you know, we've. You can call us on that 1300 number that we always forget to tell you about. But it does exist because someday someone will call us and we'll. It's 1376 triple 1 9. If you can't make the call, obviously within 24 hours. These calls are usually within your member area that you can tap into. And. Yeah, without further ado.

Yep.

That's all for us.

That's all for us. Here's to your property success.

See you later.