Your Property Success Mentor Call April 29-04-2021

Hello hello everyone. We're about to go live with this month's your Property Success Club Q and A call. Just checking if you can hear me. If you can please type in a comment it. Okay everyone, it is time to start and let's say hello to everyone. I know there's always a lot of technical issues that we experience when we're we are projecting into Facebook. So please type in and let me know that you can hear me and you can see me. As many of you know, we have been running these youe Property Success Q and A Mentor calls for over eight years. There's years of them here in the Facebook page. But if you're a member of your Property Success Club Location Masterclass Ultimate Guide to Renovation, then a special welcome to you because you have all of those eight years worth of information that is now currently in the portal so that you can access it. As I've said in the past, this is not for your specific information, it's for general information. I want to be able to answer some questions and assist you, especially those of you who are going through a lot of my curriculum and courses and a bit confused about the property market. However, I'm not a financial planner, I'm not an accountant. I can't give you specific financial advice. I am, however, when I put my broken hat on a mortgage broker so I can answer some questions about finance and all the things that we're seeing that's happening in lending and banking at the moment. But as you know, things are a bit chaotic out there. It's April 2021 and what a different time it is in the year compared to where we were in April 2020. So I'm hoping that you've brought your questions along. I know there's been a bit of activity in the your Property Success Club this month. There's a lot of people who are doing things. I've had a lot of calls in Investors Choice Mortgages with my strategy calls with clients who have got a borrowing capacity and looking at where to buy. Actually, I've just got off the phone and highlighted a couple of suburbs for someone buying in Adelaide and I put together a bit of a presentation that allows you to have a look at what is happening in the market and seeing what is happening. I think there's some really interesting things that we can observe that's happening in other markets as well. So you know, I've always watched the New Zealand market and they're usually about six months ahead of us on how they treat finance interest rates, the property market. And as I told you last month, New Zealand had started putting in some different type of controls around how much people could borrow. This discussion about interest rates going up, there's information around reduction and loan to value ratios. You have to put in a bigger deposit. The property market over there has gone a bit mad. I was speaking to people around the world yesterday and they were talking about how Singapore, Czechoslovakia, those property markets are really in boom. I was reading some reports and shared with my mentoring clients earlier in the week around the US market and a lot of analysis around, is that market booming and will it bust? And the article that I was reading was doing comparison against Canada and the UK and it was looking at how it was just definitely under the growth that those two countries have had. So, you know, despite all of the shutdowns and the lockdowns and everything that we've experienced, there has been, I guess, some precedents that other countries have. Their property markets are continuing to increase. If you think back to May, June, July, in 2020, all of the banks were talking about a 10, 15, 20% reduction in house prices. We didn't see that. And Anz and NAB have come out this week and they're Talking around the 10, 15% increase in house prices, which is really nice to hear too. So, as you know, this is the one time a month you can jump on these calls and ask me personally a question about your property journey, your finance questions that you have, what's going on in the market. But it's been a pretty big month for me, as some of you may have been aware and have seen emails that have gone out, I, on a bit of a whim, had made a choice that I was going to embrace spontaneity, synchronicity and adventure in my travels of the world. And when an opportunity came up to go hiking on the overland track in Queen, in Queensland, in Cradle Mountain in Tasmania, I took that opportunity and spent six days hiking through Tasmania in the cold, but not the snow. Luckily, that came the following week. And it was really something I was unprepared for physically. And I have to say, I think a bit of the mental resilience that had been really fostered during the last year has really given me a lot of the fortitude and assistance to be able to deal with that situation. When we were in whiteouts and completely soaking wet and walking through muddy ground and falling over and twisted ankles and not being able to see in front of you, you know, it really gave me a real sense of being able to draw down deep on the experiences that you've had and the foundations that you have and the mental capacity that we have to pretty much overcome any challenge. So I know a lot of people are going through challenges now. There's a lot of first home buyers are out there that are really worried about whether they can get into the market. There's a lot of people who have, you know, really sat back and wondered about buying and now jumping into the market and week after week being knock around a lot. I mean, one of the mortgage clients that we looked at just recently, you know, the median house price is supposed to be around 430. And in actual fact, that median house price, if you're watching all of the sales in the last month is around 530. So that's $100,000 jump about what's been reported. So just when you think you've done all your research and you're jumping into the market, it becomes more and more frustrating. So I get that. As I said, I'm here to help you if I can. Please do. You know, there's an opportunity for. I'm just going to put this in the notes below and there's an opportunity for you to ask questions. You know, just jump on that little link I put in there and how I can see who you are. But if you ask questions in Facebook, I should be able to see you anyhow in the questions so I can help answer them. So if you've got any specific properties or areas or concerns that you have, I really encourage you to, you know, put your hand up and ask those questions and make sure you do also jump in and go to and see the janeslaxmith.com au website and I'll just share that with you because I think, you know, we've actually put a lot of effort into making sure that there is the ability for you to go through and grab a lot of the information that I've had in the past and have collated in the past that you can use. And you know, the Borrow My Brain series, there's an amazing amount of really interesting interviews in there. Everyone from first home buyers to people who are a little bit older looking to buy, people who are wondering whether they should sell their properties or not. So there's all of that available to you and I really encourage you to jump in and just look at the resources that are available because I think when you actually see what's available, there is so many things that I've made available for you completely free and completely at your disposal. But also these Vaults. If you jump into the vault. I do have a secret vault that's available for a small amount of time in there that you can jump into and have a look at some of those video series that around renovation. But you know, there's a lot of people who are wondering how they can get to their plans and they're sitting in their 40s and 50s and think they've left it too late. Please just go through these. There's been a lot of time and effort that we put into creating these in the past and I thought it was such a waste to leave those out. And if you get really bored, you can go and listen to all the different podcasts that I've been on recently and appearances. So lots and lots of information in there. Once again, if you are a first home buyer, I really encourage you to jump out and have a look at the first home buyers page. I've once again curated that. I mean, you know, and put together the guide of the grants. Come 1 July 2021, 10,000 new first home buyers will be eligible for that first home loan deposit scheme. But just be mindful of that because I think that when we have a look at the opportunity of jumping into the first home loan deposit scheme just a couple of months ago, those that weren't taken up in January to June, in 2020, where we re released and taken up within a week, the first lot took a few months to get through. The second lot in 07-01-2020 came out and took about two months to get through. What's happened with the lenders is they are under so much pressure at the moment that we're finding that they have essentially slowed down completely. If you're trying to do a refinance, it will take up to 45 days for them to actually pick up your application. So don't plan on waiting around and thinking you'll be able to grab some cash out and then go and buy a property. If you're going to be doing that, please start early in your considerations because there is just so much that's going on at the moment and the banks are being so slow and a lot of them, most of them, have actually pulled out doing full assessments on pre approvals, which means that you can put in your opportunity or your application to say that you want to take an opportunity when it suits you to buy a property and you think that you've been fully assessed by the lender, but in actual case you haven't and things could come up. So the last thing you want is to commit to appropriate property. Even worse, committing to a property at auction and then finding out that you can't go ahead with that purchase. So we're finding in Investors Choice Mortgages. You know, I've shared with you previously, we closed our books to all new clients in February because I felt it really important that we would just look after the inquiries that we had to the standard that we are used to, rather than, you know, either not doing full assessments and letting people down or having people wait weeks and weeks and weeks for those assessments. And, you know, since I've reopened to new clients, not just existing clients, in the last couple of weeks, you know, the stories of having to wait to speak to a mortgage broker for three months or a mortgage broker saying they can help help people out and then taking three months to get back to them. You know, it was unacceptable for my business and, you know, it was a really tough decision. Who decides to close their mortgage business to new clients in the middle of a boom? But, you know, it's really important to me that we keep up that standard of care and consideration. And I know that the 10,000 first home buyers that are potentially going to ask to have a first home loan deposit scheme, which means they don't pay mortgage insurance with a 5% deposit. If they go through one of the 29 lenders, CBA and NAB being the two big main lenders, they are going to have to essentially front up with a contract of sale. So if you are thinking of capitalising on that or you thinking, or you have friends or colleagues or workmates who potentially could be eligible, they should be looking around, doing all their research and getting the properties and the areas that they want to buy going now. So all that, so that they're ready to go and have their finance looked at. So that's just a heads up. Now I would like to really share with you today. I'm just going to close down all of these little things I've got here, but I'd like to be able to share with you today my thoughts on what is actually happening in the property market and in particular what is happening around Australia. I think it's a really good opportunity for us to be able to look at the market and take opportunity. I know a lot of people are frustrated. You know, I work as, you know, with a small group of mentoring students, usually six to 10 at a time. Four of those bought properties in since Christmas. And you know, where every week in talking about the properties where they're looking at buying, they're looking at what other people are doing. We're discussing negotiation techniques, how to get in, how to utilise buyer's agents to get in faster. You know, at the moment it really is, I guess, a bit of a fear of missing out. A lot of people have, but also there's an opportunity for people who are ready to be able to step straight into the market. One of my mentoring students recently was buying in Melbourne and I think we'd been to. He also engaged a buyer's agent and I was working really closely with and I think they had done about four auctions and weren't successful on four auctions offers. And one of the real estate agents, the buyer's agent knew quite well, said, look, you know, this is a deceased estate and I've got so many books, properties on my books that I'm dealing with at the moment. If you come in around the 1 million mark, you know, we'd be happy to take that number. And we knew that at auction it'd be at least 50, 50 grand over that and did all the due diligence, walked through the property, had a look at it, look at the risks and were able to secure that property well under a million. So, you know, it just goes to show, just because you're hearing that the market's moving so fast, maybe having some contacts with someone on the ground is something that could be of benefit to you. So don't close out the fact that it is very busy at the moment, but it does actually beg the question, which is, you know, what is happening in the market and if we do take a 10,000 foot view and have a look from above, I think, you know, everyone who I talk to wants to know if the boom is over and if we're about to, you know, move on. And I don't think that's the case. So first of all, you know, the information that has recently come out from RP data this week has really indicated that there, although there's been the fastest property price growth rate in March that we've just experienced and they've just reported on was the fastest since 1988, the year I left school. But, you know, that's how long it's been since we've really experienced this type of market. And in the quarter, you know, we've got these prices of these, these cities going up extraordinarily. Now, just to put a little bit of perspective on that, every month I take the data from SQN Research, you can just see this little spreadsheet here. I run an algorithm to have A look at what's happening in the market now, we're talking about some of these suburbs that have done 2% in the last month. And you know, Adelaide did over the last 10 years has averaged 2% a year over the last 10 years. Ballarat 6% Bendigo 5% Brisbane 3% Canberra 5.8. Darwin 1 minus 1.6. Geelong 6. Gold Coast 4. Hobart nearly 7. Melbourne nearly 7. Newcastle 5.8. You know these numbers. Sydney, 7, Sunshine Coast 5.6. So when you look at that in context, the fact that these suburbs within a month are going up to 1%, it is quite extraordinary. So it's really interesting to see that that's what's kind of happening in the market at the moment. Okay, Anthony, I see you've got a question on interest rates. So let's have a talk about that in a moment too. But I think what's really interesting is it at a peak and as you can see here, we've started to see a little bit of a decline. And so, you know, RP Data have actually put out a really interesting paper on that. We have seen in the last week. ANZ and NAB have come out and they've talked about their forecast of growth. I mean, I was just looking, as I said with a client in Adelaide this morning, is expecting growth around 13 to 14% this year and around 5 to 6% next year. Now let's just once again put that in context of what I was just talking about here. Adelaide's done 2% per year and we're now talking around this 13 and down to the 5. Does that mean they will be able to continue that going on? Well, we've only got a 2021 and 2022 forecast. But what's really interesting here is that you can see across Australia over 16% is what's forecasted for this year. Now we're five months into the year. ARG got some months to go. But you know these economists that got it wrong last year, will they get it wrong this year? Who knows? But you know, with some degree of confidence, you know, I've been monitoring this market. I pulled my mentoring students out in April. We didn't reactivate into the market and do start the research until September when I could see that the stabilization that we're going to go through, we're now experiencing this growth. We're getting into the market. Could there be another year and a half ahead of this positive outcome? I sure hope so, but who knows? We'll definitely be monitoring this. But there is opportunity to get in. And I don't believe people who are securing good quality properties at the moment with good quality research are actually going to be doing themselves any disfavors. And as you know, I'm always believe that you should buy the best possible property that you can buy when you can afford it. So, you know, I find, I find this, you know, really, really positive and I think that, you know, we should watch this market and we should continue monitoring what's happening not just in the market but obviously in, in relation to, you know, some of the other countries that we depend on, such as India for our overseas students and what that will mean when the borders are open. This is a really interesting report and I really encourage you to go to it and check it out. It's the CoreLogic report on the seven signs of a aging housing market. And you know, when I look at this report, it's really interesting because what it does do is it gives you some context on what is actually happening in the market and what the concerns are that you potentially may need to be about, be aware of. So even just Google it, I'll put the link below. As I said, they are saying that there is some coming off of the market at the moment. The clearance rates are improving. We're definitely seeing that over 80%. We're definitely seeing more vendors coming on the market and putting properties on too. So, you know, that's all positivity. We're seeing that new supply is coming through. You know, there has been developments, been continuing. We do have some negatives such as we've closed our borders and we don't have the population growth which usually comes from overseas impact. It's a very direct impact. The less incentives potentially in the home builder grant now at the end of March has concluded. However, they've said that they're going to continue it in a form and they've also extended the time frame to actually complete the works because of all the building. It's really hard to get the supply of land, supply of products to complete the building. So those prices have gone up too. I think, you know, this whole conversation about cash rate, we'll get into a little bit later. Positive, very positive sentiment at the moment. So, you know, a lot of sentiment kind of measures. You know, we're really pushing up to some of the highest numbers we've seen and I think, you know, these articles are really important. But to me, what really I think the big picture is that as you can see, eventually international borders will reopen, helping to support housing demand. As overseas migration recovers. And this is going to be a watch and see. But think about it. New Zealand and Australia sting here as islands who we haven't even had a thousand deaths, which is just remarkable and we're so blessed for. But in China and India at the moment, 2,000 people a day are dying. So there's going to be, I think, a retreat to safety in sanctuary. I think these island nations are going to be seen like that. Where we've got next month some opening of overseas students able to come back into Australia. You know, I think it's in the realms of like 120 a week or something. So it's very small, but you know, it's a start. But as those borders do open, there's going to be a very, very positive effect. And RP data agrees that those people are going to come into Australia, they're going to want to rent. And what that means is there'll be demand on rental properties, which means rents will go up. And then all of the poor baby boomers who are depending on watching their super go down and their pension base amount go down, they're going to be turning to potentially looking at better ways to invest. Those that have given up on crypto and everything happen share market will start seeing 5, 6% rental returns and move to property. The people who move to Australia after six to 12 months will want to buy a house once they've got a job or with the job that they have come with and they'll be moving into property that increases demand. And if we look at that in conjunction the RBA saying they're not putting interest rates up until 2024, this is a sustained demand. So, you know, when I look at these kind of numbers and this prediction of maybe this year and next year there's going to be that much growth, I don't think we're going to have borders opening for a whole lot longer. You know, we're not going to be opening up borders this year. I don't think so. We're going to have that sustained opportunity come through. And will there be a housing bubble or if there's demand? People need to live there and we're bringing people into the country. Does it make a demand if the demand meets the supply? And we know Maslov's hierarchy of needs, we all start with sanctuary and needing a home when safety. So it's what people default to is if you have to give up everything, food, water and home is the thing. They don't. So look, everyone's predicting to see this amazing growth that we have seen to continue, which is good news for us as investors. And another reason for all of those conversations I've had with is it too late? Should I give up now? The answer is no. You might just have to be a lot more savvy about it. I know that, you know, I'm working very closely with my mentoring students every day, almost day, but definitely weekly and monthly we're talking and we've just had a quarterly catch up. And I'm definitely saying, you know, that they who have taken the step of knowing where to buy, what to buy and being very laser focused. The next question is if they have the time to be able to get in and be there knocking on the doors every time an open home is available, they have been able to be very successful. And if they don't, they engage a buyer's agent and spend somewhere between 8 and $18,000 to make sure that they are getting in to the market. So that just brings me to mortgages and Anthony, I see you've got a question. I've got lost when clicking on the link, so not sure if it's currently working. My question is on the direction of interest rates. Lots of talk with bonds rising, et cetera. Yeah, look, it's really interesting when we do look at some of the predictions that we're seeing and when I look at what the RBA cash rate is, that kind of conversation of where they think we are. You know the 10 year average cash rates around the 4%, the 20 is around 3.6. The 10 years around 2.06. Now remember this is the RBA cash rate. So this means that, you know, they are, they're. Yep, this means that they actually the rate and on top of that is the margin that the banks put on, you know, one and a half to two, which is kind of like the rate that you're usually paying. I mean at the moment, you know our cash rate is almost zero. So we know that the cash rate is zero. We know that people are getting home loans with 20% deposits of 1.99 and a little bit below. So you know that kind of think of that 2% is what you would put on top of these cash rates to know what the typical type of long term interest rates are. So if you are worried about interest rates going up and you're taking a 5, 10, 15, 20 year plan on can I afford this, then take the long term interest rate and it's probably better to leave out the early 90s and so maybe it's the 20 year average or the 10 year average and add on 2% to that. Just make sure you can continue to afford to pay the interest over that period of time. But I think Andrew, the really interesting question that you or Anthony, sorry that you pop in there about, you know, what is the direction. The RBA have definitely said and repeatedly said that they don't believe there'll be an interest rate change until 2024. And let's be honest, the RBA is not just about home loans, right? Their interest rate. They're talking about the way that we do business and credit cards and investments and their rate changes change everything. So they're not going to be changing their cash rate. But does that mean that there might actually still be changes to the interest rates that you could be paying? And I think the answer there is yes. The beginning of this year I predicted that by quarter three this year we are going to have some even tighter criteria that the lenders are going to apply to how they assess getting money. We did see New Zealand drop back to lower loan to value ratios. I mean when I started writing mortgages for years there was banks like St. George was loaning 106% of the value of a property. You know and you know you can still get a 95% loan with mortgage insurance. With some lenders you can get a 90% loan which means you put in 5% deposit or 10% deposit. But you know, we've definitely seen at times when things have got tough or there's too many investors in the market. We saw ASIC and Accrup put in some macro prudential changes that made it really difficult to borrow. They made it really difficult for lenders to lend money. They tried to reduce the number of interest only loans. They tried to reduce the number of investment loans. What you can see here in this mortgage activity and what's really interesting is we for the first time ever in the first couple of months we definitely saw the first home buyers be the prominent push to the market and you know, the home buyers grants the first home loan deposit scheme. Easy money. It's cheaper to buy than to rent. All of these fundamentals are great. I had a conversation yesterday with my mentoring students about the fact that it is tempting. Unfortunately there's so many people are just running in and buying a house and land package because it's nice to be able to choose your own bench tops and have a home of your own. The reality is they're in the middle of a development site where they're at the mercy of other people economic situations on how they sell their property and they sell it $50,000 less then becomes the property value of their home. And if they're using this home as a stepping stone to create equity in an investment portfolio or to home hop from one home to the other, those plans are going to be difficult to achieve. So they might just be stuck in the house and land package forever. So fact is that is just fine for so many people, which is great. But I think there are some concerns there. The first home loan, the first home buyers are definitely getting pricing pressure on them. A lot of the grants and benefits that they get up to the value of $600,000 properties for instance, which is just not achievable in a lot of the capital cities. I did have a quarterly catch up with my mentoring students last Sunday and I bought a data scientist with years of experience and having developed the data sets for Price Finder and Apidata and so many other companies whose got a company called Suburb Trends which I'll show you a little bit later. But he we were having a conversation around all of this, the data and what's it mean and where's it going. And we're definitely getting better and better data to get better and better analysis on where to find properties and how to find properties. And I guess the thing is that the more data you become paralyzed by the amount of it or if you just know how to direct your inquiries and your questions, you can be a lot better off. A lot of investors have just started coming back into the market. But what I found really interesting in the conversation with Kent from Suburb Trends was we're talking about this rise of the regionals and I was always quite dismissive of the fact that the regionals were going to be everyone's moving out of the cities, packing up shop, working from home, forever moving to the country and you know, beautiful new Hobart or somewhere, I don't know. And what he said was interesting. You're saying it doesn't take a lot of people to move to actually push up the value or activity in a town. So if you think about a small town, 5, 10, 15, 20,000 people and they have four or five new families move to that town. That's actually quite a significant a lot of economic activity, schools, shops, jobs, etc. Buying property or is losing four to five families from the city or the capital cities doesn't make that much of an impact. So it's interesting to see a small change, A small number of people moving to these towns can have A big effect on the house prices. It doesn't really affect the base prices and what we're seeing in the city, especially when there's so many people wanting to buy in the city. So I think that rise of the regionals, there has been some really great opportunities for people who have had regional properties to finally get a bit of growth and potentially get out. But there's also, it's not having a real detrimental effect on the capital cities and those regionals. Now their growth rate has actually dropped below the capital cities. Capital cities are back. It was just a short term blip and I think it will, I mean I don't think it will be replicated again. Look, this is, the mortgage stuff is interested, interesting. Obviously as a mortgage broker it interests me, but it's kind of for me, I think there's a huge opportunity that people can take on at the moment. Anthony, just to finish off in your question, I don't think the cash rate's going to move much, but what I do think is we're going to see the interest rates potentially start being pushed up by the lenders themselves. They're going to do a number of different things to try to curtail the movement. But just look at this, this is the loan purpose. So we've really seen in the current 12 month period a real uptake on lending activity. And when we look at the same time last year we've got this huge amount of growth that over 60% growth. Between that and when we're looking at what, what people are doing, there's 22%, 23% that are purchasing properties that home builder grant and you know, all that generation of kind of stimulus is resulting around about 11% of construction. And when I look at the refinancing, this is where the money's being made. This is where people are day in, day out, just, just having just incredible opportunities. I know at the moment, you know, we're working with a number of clients and I can just think of one in the last week where we've saved them over $5,000 a year in changing their lender to a better interest rate. Now if you think about this, low interest rates, but your house, properties, property prices have gone up and you may be 10 to 20%, you know, above where you were this time last year. Well, you've got equity there, so this is going to give you some opportunity as well. You know, the property's worth more, the interest rates are less. It could be really a time to consolidate. It could, you might have credit card debt or car debt or all of these other debts. You might have a wedding coming up or you might have, you know, a major life event that you want to plan for. You might want to, to buy an investment property. Now just be mindful of the fact if you do take like a credit card debt and put into a 30 year loan, you can be paying interest on that technically for a longer period of time. But you know, 15% interest compared to 2% interest, like amazing. So you know, last year we really just support our Investors Choice clients through Covid. I was running weekly updates. You know, one client, we saved a hundred thousand on their mortgages by refinancing them. And when we're talking about saving people 1, 2, 3, $5,000 a year, that's a year on a 20, 25, 30 year loan. So really, you know, you don't have to come to Investors Choice. We'd love if we could help you out but you know, speak to your lenders or your brokers. There's really some opportunity there for people to refinance. No, it's going to take a while because all the banks are really slow. So. So the other thing is that you will find that the. There's a question I was asked today around, you know, if you're buying a property, whether you should be mindful or worried if the interest, if the properties are going up really quickly around the valuation, not stacking up, especially at auction, especially if there's like $100,000 difference between the median and what has been experienced before. If that's the case, then if it's a 20% deposit, often not if it's not a 20% deposit. Sometimes I send a valuer out there, but the valuers are usually geographically based, per suburb, usually two or three suburbs. And they know those areas and they know what's happening. And more than half of their work is around refinancing and, and not just sales. So they're actually seeing in the market what's happening very, very quickly. So you know, I'm not seeing any pushback on valuations at all. But just know if you are putting in offers, please put in a long finance clause as long as you possibly can to give your mortgage broker or bank lender time for you to get in there and get the valuations and all the documentation done. So I'd really encourage you to, as I said, look at your mortgages at the moment and speak to your brokers, et cetera, and seeing what you can do. As I said, the RBA is not talking about doing anything until 2024. That doesn't mean that the banks may not put up their loan interest rates. They may do that to try to curtail some of the activity that they're getting. But, you know, the fact of the matter is that we're going to be in this low interest rate environment for a long time, which means anyone who's got cash in the bank is probably going to be looking for other alternative ways to invest. And that just could be in property safety in bricks and mortar, especially when the borders open and vaccinations get fully rolled out. Look, this kind of concerned me. And that's the, the report that came out with the rba, Philip Lowe mentioned that they had done some studies around the interest rates the banks are charging. And if you took out your loan eight years ago, they've actually found that you're actually paying well over 4% above, sorry, 0.4%, just basis points above what new clients to the bank are actually being paid. If your loan, if you're just taking out a loan now or in the last one year, for instance, one to four years, you still might be paying 0.1, 0.2, 0.3%. But this loyalty tax, I think is a real big issue. And definitely some of the clients that we're speaking to every day, they've been with their lender and they've been loyal for four or five years and now they've got to the point of view that they're really seeing. The fact that the interest rates are being advertised and even the cashbacks, two $3,000 cashbacks by moving lenders is making them wonder if the banks are as loyal to them as they've been to them. So you could be paying this loyalty tax. It's considered that people who have established mortgages could be paying up to 4.4% more than new clients. So I really encourage you to go out and work out. If refinancing is for you, I'd love for you to go and learn whether it works for you. And you know, really if there is an opportunity for you to do it, you don't need to book a call with us just to work out if it works for you. For some people it doesn't work. And it doesn't work predominantly because you might be in fixed loans and there could be concerns around break fees. It might be that you're going to sell soon anyhow and it could take a while for this to happen. It might just be that you're getting a great rate at the moment and Your banks have been looking after you. So for whatever reason, it's not always a case of yeah, let's just refinance for the sake of it. So I really encourage you to work with your broker, go out there and have a look if it's something that suits your needs because it definitely doesn't suit everyone. I've tried to put that into that ebook so you can really see the benefits and not and even just do a little checklist for yourselves. So check that out. Okay. Any other questions? Anthony I'm so glad that I could help. Another Facebook user has a question there. Let me have a look on what they're saying. Miriam Will many lenders lend on a letter of offer for ongoing government employment? They won't lend against that, but they can use that as your income. Okay. On one income only currently, no LMI required. The more of a deposit, the easier it is for you to get lending. No doubt the more stable your income, the easier it is to get lending. However, there's a lot of lenders that look at unusual circumstances and CPA and NAB for instance, they're very good in, you know, people who are on contract or you're in a full time job and you've only been there for one pay cycle. You don't need to have to prove that you've been through a three month probation if you've got ongoing work with say a government agency or an employment agency or you have been in that line of work for a long period of time and you've just changed jobs to another provider. There's a lot of people who have for instance been in a job and as a contractor working for a company and then they move to full time working for the same company. A lot of lenders will just take that as being you've had continuity of lending employment. The problem is though is that every lender is different and so there might be one lender that will take your ongoing government employment job that you have, but they won't take the fact that you are trying to build a granny house granny flat on the back of the property or they don't like the fact that your partner is major part of their income is commission or bonus. So there's really a lot of things that you need to consider. What I'm thinking your question is, now that I think about it, is you've been given a letter of offer congratulations and you're wondering if you can get a job based on it. And the answer is no. You usually need to have the first pay slip. So as I said, those larger lenders, usually the first payslip is enough to prove that you're there and you're working. However, for other lenders, they might need to see that you've had a three month probation. And unfortunately some of the other lenders are the ones that are going to lend you more. So sometimes it's best to sit out and wait to have borrowing capacity 2 to $300,000 more. So just make sure that you get assessment done and you let your mortgage broker know what your long term goal is. And I think working with the long term goal and knowing what you're going to do is where good brokers can really work into the long term assessment of what lenders are going to suit your needs. Because if they know that you want to be subdividing the property and they take you to a lender that won't let subdivision happen. Maybe getting in now with one of the lenders that won't allow that is not in your interest. So that's why it's so important, important to make sure that you have the right plan in place for your financial plan. So you don't have the job yet, but you have the letter offer. So wait for the first pay slip. But your mortgage broker, as I said, banks are taking so long at the moment and my experience is we have a discovery call with a client, we give them access to our portal so that they can upload everything and fill in all the information. So that's not a, you know, manual process anymore. That can usually take a week and then it usually takes about two to three days to get a research brief done. And then we debrief about the research brief and then usually people then book a strategy call with me and how much they can afford and you know, I look and use all my resources to see what they can do and once we know where they can buy, you know, in the meantime, the team's putting the loans together, collecting all the extra supporting documents, getting everything signed. Everything now is easily signed on e sign, which is fantastic. Everything is done digitally and then all the IDs can be done digitally as well. And then the loan goes into the application, goes into the lender. Now that could be a two week period and then the lenders can take up to 20, 30 days to assess. So you know, this time frame can be to take a while. So if you think you're about to get a letter offer and you will have a pay slip within three to four weeks, don't hold off, take action now. It's my advice. I have something else I want to show you. One of the things. Other questions coming through. Not yet. So one of the other things, obviously wearing my mortgage broken hat affected my hair is what I want to show you is some of the extra information that's coming out at the moment that I want to share. I put this in with my mentoring clients, but I will be adding it into the resources section of the Ultimate Guide to Renovation and Location Masterclass. Should just see if it's there because that would be really handy. The people. Let me just. Not yet. Resources. Yes, it is. Okay. Suburb Trends under resources. Suburb Trends. So this is two tool tools that I've just, you know. You know, I love information and sharing information and finding new technology to get into insights in what's happening into a suburb. The reason I really like this. Anyone have a suburb that they want me to type in? Any particular suburb, put it in and I'll type it in. But the reason I really love this is that there's an extra data set here that I don't usually get and that is around inventory and the amount of inventories on the market at the moment. Now, when I was talking to Kent from Suburb Trends, what I found really interesting here was that he really had a sense of the fact that as inventory, the amount of properties on the market at any one time compared to the amount of properties in the area would really allow you to. Get an idea of what the lead indication is happening in the market. So we've got quick on the information here. Anthony's thrown in Randwick. So we put in. I put in Randwick here. Now what's really, really interesting here, hopefully you can see this is the information that comes around what's happening in the inventory. So when we start looking at the inventory, I think that probably has. Yeah, it has made it too big. So we've got here the listing price, we've got the median price, we've got the inventory price. Now this here is a showing for at the moment. It's just showing for units, but usually, and it's being updated at the moment, the information will come through for houses. But if you have a look here, just for units, you know, 12 months ago the units were at 1.54 and now they're at 1.44. And what this really gives us some idea about is what is actually happening in the market as opposed to the inventory. And you can see here it's a strong sell sellers market. Now, if the number is less than 3, let's put in another. My old Kingsford, if we put in a number that's less than, if it comes up and it's less than 3, it really indicates that it is a seller's market. If it comes up between five and seven, it's a bit in equilibrium. And if it comes up over 8, it means it's a buyer's market. It means that, you know, there's an opportunity for you to get in there and start negotiating. So I think this inventory is a really interesting component. And the other thing that I really like is this other tool that he has, which is around price segmentation. Now, one of the things that happens is people get out there and they start looking using Suburbs Selector software. They see that there is a opportunity with the Suburbs Selector software to look at the median price. Then they hit the streets and all of a sudden the prices are all over the place and they're like, wait a second, I thought I could be in here at 400,000, but in actual fact, the market is 500,000. And this price segmentation tool, really, when you're having those doubts or when you've got down to that last kind of research, you can start seeing that, for instance, in Haberfield, you know, there's a lot of properties around 1.5, 1.6, but all of a sudden we've got 2.6es and we've got 4 at 3 and 3.2. So if you're looking at the median price for Haverfield and let's just see what it comes up with up here, New South Wales, you know, this median price is coming up at. Is that what came up at? Let me just. Yep, Haverfield, it's coming up at 2.2. Where in actual fact, if you got in on the ground and you started looking around, you know, 2.2, there's only a certain amount of properties below 2.2. There's 20 properties in the last 12 months have sold 2.6 to 2.8, and some that are actually sold up around the four. So when you hit the ground, it might actually be really hard to find the properties. So, look, this is just a new tool. You know, as I said, I'm always trying to find ways that you guys can get more information out. This is really after you've gone through the suburb Selector software, you been through the location masterclass criteria, you found the areas that you want to find, you've got down to the price point and you've got your three to five suburbs and you've gone, okay, fine. What do I now want to be able to do? So I think it's if you're in Location Masterclass, if you're in the Ultimate Guide to Renovation, obviously, if you're a mentor, I've definitely added that information in there for you so that you can have a peregrine. You can have a look at it. But, you know, this here's the inventory here. So look at this. Peregrine Perrygan, Queensland. So last year the house inventory numbers was 5, and now it's down to 2.97. So this is a lead indicator is showing that this is really a seller's market. There's less inventory on the market compared to the number of the properties that are actually there. You can't see that because, hey, I've just put my big fat head over it. So let me just change that. So why I think this is so important is that it gives you an idea of what's happening in the market. So there has been a huge move, you know, this time last year, Median house price 788. What is it now? 855. So it's really giving you a sense of what is happening there. Let's have a look at Stafford. Wow. Check this out. 3.6 down to 0.88. And want you to believe is that the prices have gone up because of that. It really shows you, you know, the days in the market are going down. Strong sellers, market. It really gives you an idea that there's a lot that is happening here in the market. And I think that more and more, as you see this as a tool to see, well, what's happening as a lead generator. If you're watching this every single month, you're actually getting a chance to see where in the market is there opportunity to be had. 1.7 to 2.06. So this is interesting in Ararat and what we've got, Alvin, here, is we've got the fact that there is now more properties on the market in comparison to properties in that market. So we're actually seeing. We have seen a price increase that has happened. But what this would indicate to me is that there's probably some slowing down of the market. What's interesting here, also, the vacancy rate is zero. Right. So we're actually seeing the fact that if you're buying a property that was an investment property, it would be sucked up really quickly by renters. So the inventory now for units has increased a whole lot more. So this could be around the fact that there may have been some development that has also been going on in the area. So, you know, you just see, you know how this, who we got here, Leanne Morpeth. You can just see as we're looking at this, you know, how. Why that there's some suburbs. It's doing weird things. We can't see the inventory. When I have to give feedback. Morpeth. Oh, no, inventory's popped up too high. I can't see that. But it does indicate it's a strong seller's market. So we make the assumption there. So vacancy hasn't changed much, we can see. Interesting that the house price has come down as well. So this is unusual compared to the rest of what's happening. Obviously there's no units in Morpeth is there's no unit data or very small number of sales. So does anyone else have anywhere that you want me to throw in before we leave? Just let me know. But you know, as you can see, these tools give you a little bit of an idea and, you know, if we can have a look at, you know, what is happening in the market and we can actually start seeing, you know, all these differences now, this kind of jump is quite extraordinary. And if you're watching this market and, you know, you're in the location masterclass and download your workbook and this is one of your three suburbs or five suburbs you're looking at. I'd be tracking this every month and just watching it because as you track that, as that goes down, you'll see the prices go up. Supply and demand, which we love. Right. So hopefully that has given you guys a bit of an insight about what's happening in the market as well. As I said, Rush, don't run to get your interest rates reviewed. I think there's a real opportunity there. Number one thing that you can do is just ring your current bank and say, I was talking to my broker, Jane, and she said that if I move to another lender, I could potentially get a better interest rate. I'm just wondering what can you do to help me stay and get them to sharpen their store whilst you speak to a broker and see what if there's something else even better for you. So thank you for putting in the information there, guys. So, Marg Adams. So is the first step to contact investorschoice.com book a call to get to have a chat with the real person? Yeah, absolutely. If you go to investorschoice.com bookacall that will just go straight into Lisa's diary. Our I know that they have a public holiday in Queensland on Monday. The lucky things. But usually there's less than a two day wait to have a conversation and that just gets enough information. Make sure that we're good to be working together. We don't want to be dragging you along if we can't help you out or we would be putting you back into the right direction if we can't. So, yep, do that. But download that investorschoice.com refinance eBook. It really might give you some thoughts on the questions you should ask as well. So yeah, check it out. But if there's no other questions. Leanne. No problem. You know, if you're in the location masterclass Ultimate Guide to Renovation, please go and check out those news resources and play around with them because they're really great and make sure you are, you know, just, just watching the numbers as they come through every month and how it changes. Because I think finding a lead generating or lead indicator is fantastic and we're always looking at pricing pressure and all of those things. But the reality is that. We can't but not want to see and have more information in our hands and to be able to jump in and take opportunity when we can and leave the rest of the market for dead. So as I said, it's a really great time to be buying. I always buy when I can afford to rather than, you know, trying to time the market. The only real time I've ever stepped out of the market was between, you know, April and September last year when I had significant concerns for mentoring students who are purchasing around what was ahead. And you know, as I said, we jumped straight back in September and started finding them properties that they could add that 10, 15, 20% growth into in this year and the next. But I'm really optimistic about what's happening. I'm really optimistic about Australia welcoming people with open arms when the borders do open, those that are vaccinated and have been through quarantine. But once that all happens, I think there'll be more pricing pressure on our properties because there'll be more people who want to be living in them. So the investors who are using their strategic planning resources and looking at all the data and working out what to do are going to be ahead of the game. So it's time to get into action, everyone, if it's time for you, then work it out and take some action today. What I can do to encourage you. So before I wrap it up, any final questions, let me know. But you know, it's always a pleasure to serve you and to be able to answer your questions, give you a little insight, a little confidence as to what's happening, give you some heads up on where you can save a couple thousand a year and maybe put it towards a holiday in the years to come. You know, I know that it can always be confusing. You don't really know sometimes who to talk to, who to trust. Maybe your family members aren't that interested. You're an investor in solitude. But it's all around, you know, learning and taking action and applying what you're learning rather than learning, learning, learning, waiting, learning those who take action with a real plan in place. I'm seeing making great resources and, you know, for themselves and their family in the future. So, yeah, it's all good. Okay, guys, well, that's April. It is a wrap and we will be looking forward to talking to you. That's not the royal week. Bring John back in maybe May next year, next year, next month, the last Thursday of month and we will have a chat then. But as always, here is to your property success and yeah, get in there and have some fun. Bye for now.