Your Property Success Mentor Call - December 17-12-2015

Hello and a very big welcome to everyone. Now, just before we start, as you know, we here at your Property Success love to spread the word about low risk, no nonsense property investment to as many everyday Australians as possible. And so often these calls contain some really great content and questions that would be extremely helpful to the other people, which is why we record the calls and reserve the right to share the content down the track. So by participating in this call, you are acknowledging this and if for some reason you prefer not to be included on the recording, we just ask that you contact our office within 24 hours and we can edit you out. So everyone, hello and welcome to the very last mentor call of 2005. I think we might just open up the lines and have a quick hello to everyone and a merry Christmas.

So.

So we're going to unmute you all and those with microphones, let us hear your voices. Hello, can anyone hear us? Nope, we can't do it. Unmute you all. There you go. Technology's fouled. Oh, well, we'll say hello in the chat box. I can see so many of you there. So anyhow, we are ready to go. And I have John next to me dressed as Santa, so I'm going to introduce him in a minute because I know there's a few people who haven't met him so far, but boy, what a huge year it has been in property. And there is very exciting opportunities to come again next year as well. Look, a really big welcome to you. If this is your first time on the call. We usually have these calls on the last Thursday of the month, but that is Christmas Eve and I imagine a lot of you have duties to do that night, as do I. So look, if this is your first call, we do welcome everyone. Don't be shy, speak up and say hello and ask me a question. And if you have a microphone, get it ready because I really want to hear your voice. And to all of the new Ultimate Guide to Renovation students who are just through all of the 12 modules, how time flies. It is fantastic to hear that so many of you finished the modules and I can't wait to talk to more of you tonight about your stories and what you've been up to. I've seen on the private Facebook page people are really getting into the Renault. And look, if you don't have, if you haven't worked through all the modules, no problem because you have lifetime access to those forever. So you can refer back to them or take some time when you're having your well earned break over Christmas and go back and have a look at the content then I know there's a few of you here who are on a special treat from your Property Success club. So please make sure you introduce yourself as well. And as always, my Diamond Mortgage clients from Investors Choice Mortgages. So we already have a few questions that people have sent through tonight, so I'm not going to delay. But look, these calls are exclusively for my mentoring students, the students of the Ultimate Guide to Renovation, my you Property Success Mentoring subscribers and my Investors Choice Mortgages diamond clients. And if this is your first time on the call, a very, very warm welcome. These calls usually take about an hour and a half to two hours. We try to get out of here by 9:30, don't we John? But we're. I don't think we've got out before 10. So anyhow, we're here to answer questions and you know, if we don't have that many questions, well, we'll wrap up early and go and grab another beer. So look, if you can't make a call in the future, please leave us a message. We've got a line set up. 1376 119. It's there. You can leave me a message. I can play a question and answer it or just send me a question@questionsourpropertysuccess.com but before we get straight into your questions, I do have a person sitting next to me. He's dressed in red. He is the co creator of the Ultimate Guide to Renovation, John Hubbard. Hello John.

Hey Jane, everyone.

How you going?

It's great. The visual medium of webcasts, isn't it?

Are you wearing a fancy hat or not? Who knows?

Yes, that's right.

It's 39 degrees in this room.

It is pretty bloody hot in here, isn't it?

I hope you guys have grabbed a light beer or your beverage of choice because we grabbed one and apparently you can have three light beers before you drive. So we thought we could probably drive.

A webinar with at least have one and answer questions.

Yeah, who knows? So you'd be the judge of that. Well, John, what have you been up to? You've been sharing with the regulars here your development and I hope you've got some show and tell for us.

Yeah, a bit more show and tell today. It's never moving as fast as you'd like, but the. So I've got two developments. Two, two lots of two townhouses and one of them, I can't quite remember where it was up to the last time I did show and tell. But let's have a look. I'll bring that one across. So this is the. That's nearly to lock up now. Has that changed much since you saw it last? I can't recall. So that side's. The right hand side's already locked up.

I think we saw the right hand side. The photo of the right hand side last time. So we didn't actually see what was happening on the left hand side. I think you'd had some gutter issues.

Yeah, yeah. Still going. So all the renderings been done up the top and all the roofs finished. The bricky is going to be in before Christmas. So we're expecting both sides to be locked up before Christmas. And. And then I'm doing some. Some work over Christmas. Excuse me. On the. On the landscaping at the back. So there's some fences that we'll be putting in and a few plant beds before they, um. Before they build the deck. The actual decking itself's in the builders contract.

And you're doing the fences yourself?

Yeah, so we'll do the fences ourselves. We found that the. The builders aren't very competitive on the landscaping stuff. They don't really like doing it, to be honest.

It's.

It's too fiddly for them and so that'll be interesting. So we're using a product which I've used before called for the fences, called foamfast, which is actually a polystyrene panel and it's sandwiched by a coat of render fiberglass mesh on either side. I've actually got this in my courtyard at home. Jane, you would have.

Yeah.

You may have noticed it. On one side I've got a solid brick wall. On the other side it's foam and you really can't tell the difference until you go and hit it with your knuckles. Which one is.

Does it stand up to wear?

Yeah, it's actually extremely strong. It's about. It's 75 mil thick. And use these girl posts. And it basically is. It's got a little slot in the end of the panels there. And like I say, they're 75 mil thick. And they slide into these goal posts, which are steel posts and. And they overlap the post itself. And then the renderer puts some fiberglass tape about 200 wide over the join where the two sheets join and then they render the whole lot again and put a second coat of render finished coat on and that's it. And it looks identical to a. A brick wall and cheaper. Yeah. So there's one there.

And so you can have nice ledges and finishes.

Yeah. Which are also. Which are also foam. Yeah.

I've used the foam in the house for some period features, like for the architrave.

Yeah, it's. Yep. So they do use them for cornices and stuff like that. I'm less keen on them for that because the. If it comes to repair them, they don't repair very well internally. Um, so I would prefer, like, particularly for cornice, I would prefer to have plaster cornice which can be repaired and it's going to last you 100 years.

But said by a plasterer.

Yeah.

Trade many years ago.

Yeah. But this. This is really good. I mean, they use a lot of these foam moldings and so on now. But this panel's a really fast way to get a fence up and. And have it looking like render and fabulous. Yeah. So that's what we were putting in over Christmas.

So you're putting that in yourself. You can put those in yourself. You don't need to.

Yeah, I'll. I'll work. No, I've got a. Like a chippy that I've, you know, worked with for years over the years, so I'll just grab him and get him. Probably take us three or four days. We've got that and some garden beds to do and so. That'll be. Right. Get me back on the tools again. Nice bit of exercise.

Harden up those hands.

Yeah, that's right. And then I'll show you this product. Hang on. That's it there.

Form fast, foamfast foam fast. So this is a strange thing about polystyrene. In many years ago, 10 years ago, when I was an explosives engineer, I was part of a team that developed an explosive as an alternative to ampho and replacing ammonium nitrate with polystyrene balls. So the ones that are in bean bags, they act as an oxidizer, so create oxygen and, you know, ammonium nitrate, once it's wet, breaks down, but polystyrene does it. And I used to get these calls from Queensland Rail going, you've just moved another empty shipping container from one point to another. And we're like, oh, they've got polystyrene on there. And the whole shipping container would actually weigh something like 15 kilos. And the shipping container measurers couldn't pick it up. So, yeah, there you go. Can you use polystyrene anywhere?

There you go.

Is it blast from past?

Yeah. I didn't know oxidizing produced oxygen, so.

I learned something later.

Yeah. And then the other one. So that's. That's the Other one. So it's at slab stage now.

And that looks like Lego blocks.

Yeah. So that's polystyrene again. And that's, that's called waffle pod. And so you use waffle pod to elevate your slab. And, and what they do is they, they interlock where, where the, the rio and the. There's these little spaces that drop down in between the, the pods and they lock the pods together and they're very strong. You walk over them when you're doing the concreting and, and the trenches, the concrete just goes down in the trenches in between them and you've got all rods down there. And.

Rather than. So, you know, if we say check underneath the house, we'd be looking on top of this and if they're going to do ducted air conditioning, it'd be on top of this.

Yeah, or you can. Yes. I mean, sometimes all your plumbing's underneath and comes up through. So you can see. You can't really see. Oh, you can see a couple of pipes there. Yeah. And then if you did under slab heating, you do that actually in the slab itself. But yeah, you can't really check under this house. The, the worst thing that happens with slabs as slab heave, which is the big, big problem in Victoria at the moment. I don't know what it's like in other states, but it's where the actual whole slab moves and you get, you know, corners of windows popping and cracking and all sorts of stuff. But yeah, so that's that. Where it's good is if. And I've used it on a box on the back in New South Wales where the, the back of the house was about, oh, five or six hundred off the ground. So I could have gone stumps and bearers and joists, but I used the waffle pot instead and that gave me the elevation because you can get up to about a 600 slab height, so over half meter and pour your slab at and that height. And sometimes that's a good thing, particularly if it's a wet area or something and you can go straight down onto it with tiles. So, yeah, that's what it's. That's what it's really handy for, getting a slab at an elevated height. And in this one they've actually got big piers because of the, the soil type. And, and actually it was because of this. There's a big. You can almost see it. There's a big gum tree on the right hand side there, which is just about dead, but because that's there we had to drill these big piers to so the. The tree couldn't interfere with the slab.

Interesting.

Yep. There you go. There's another. That's the front room there.

Is that before or after?

Yeah, so that's. That's preparing for the. So what they do is they put the quarter minus down or the row base down first.

Yeah.

And they screwed all that off and then they put the whacker over and the whacker looks like a lawnmower with a flat plate on the bottom. It's actually called a flat plate compactor. And they drive that over it and squash all down that stone and make it wack.

It sounds so much better.

Yeah, that's right.

Bring in the wacker, mate.

Yep, yep. And then they put the. Because you got to have had the plastic over it. Otherwise as soon as you pour the concrete on, it just sucks all the moisture out, which is a trap for new players. And then you go to try and finish it off and it's hard as a rock. So. Yeah, that's my show and tell for this week. What have you been up to?

Oh, my goodness. I was trying to remember the things that I've been doing and I actually made a list, so. Because I can't remember, but it's just been a head down, you know, work, work, work. It's. It's been frantic. You know, the APRA changes have created a lot of questions and queries and, you know, people's borrowing capacities changed and we've got a. A lot of questions around that. We've been dealing with and reworking what people can do with their property portfolios. But, you know, been heavy, heavy in negotiations actually, with the major research houses when we've got some pretty exciting things that we've done. I think the RP data, most people would have got their email if they're students, that we've negotiated for RP Data Professional, which is quite different to the RP Data public available product. And I've created seven tutorials around that.

Yeah. Which you kind of need because it's really made for real estate agents, agents and that kind of thing. But it's extremely powerful and it's so.

Good from an interrogation point of view and even creating valuations for properties. And it's the valuation tool that the lenders use for the desktop valuation. So, you know, it gives you an estimate.

The other thing you can do is you can. And I think it's in one of your tutorials is you can muck around and say the house is better than it is say it's fully renovated at a bedroom and then it'll spit you out a automatic valuation at the done at the renovated level. Which is quite handy when you're doing.

And just setting up the tutorials territories so that you can say, you know, I want, you know, to be alerted when houses 300 meters from the rail line come on the market. You know, things like that, some interrogation stuff. So, you know, we also have just finished talking to Jacob from Ripe House and negotiated for students that we'll probably release, I don't know, post Christmas. Post Christmas present.

Yeah, I think we'll struggle to get it up in time for Christmas, but.

14 day free trial, which is pretty exciting. So just the difference between Ripe House and RP Data Professional. Ripe House really gets you to the suburb and to the street level and then RP Data Professional helps you interrogate the properties. So, you know, there's a, there's a real differentiation there. And you know, just back from a meeting with Residex on Friday, in actual fact, and they've, you know, one of their, I guess their greatest assets is their intellectual property around the predictive data, five and eight year predictive data. And that's mainly because no one else does it.

No one else is going to.

Yeah. And it's interesting because I've been reading their best rent report that has just been launched today and going through the areas and they're really, you know, you go through. And I might share if people, if we run out of questions a bit later. I keep getting asked about the area of Logan and it's, and it's a big area and, and I was reading through three different descriptions of Logan that are somewhere in the Logan, you know, city council. And it was, it's amazing the difference and, but they actually go down, they ring the real estate agents and they talk to the agents in the areas and say so what's happening and what's the vacancy rates and you know, you know, what's the rental yield and what's, what are you seeing today?

Yeah, it's amazing that they do that. You just don't. You think of them as a technology company but they actually get on the phone and ring them.

Yeah. So anyhow, so we've gone and negotiated with them. So for the people in the Ultimate Guide to Renovation or Location Masterclass, you know that we've, we've tried to create a spreadsheet and create most of the values for you because we know how hard it is to go out there and get all the information, all the time. But coming in 2016, we'll be adding in the five and eight, eight year cost. And you know, I know people spend hundreds of thousands of dollars on that a year getting that data the way the banks do.

So yeah, that's a real coup.

It's been a real negotiation anyhow, so that's been great. And today I, when I was in talking to Residex on Friday, I ran into the new market analyst who's replaced, replaced the commentary that John Edwards used to make and I said, hey, how about we, you know, get some information about what's happened in 2015 and your predictions for 2016. So a couple hours ago we recorded that, which was really exciting. And my your Property Success newsletter will go out tomorrow and I'm going to copy in a link to that. So have a look at that because she's got some real interesting thoughts on the property cycle and some period of stagnation. We usually talk about the property cycle being five to seven years but not so long this time, which is exciting. And we talked about, you know, Fed bank in the US raising rates and the effects and, and where to look to and the trends that she's seeing and they're, you know, obviously need to help in data every day. So some really interesting, quick little 18 minute interview and it was good.

She was really impressive.

I watched it again, I was so interested anyhow, so that was really great. And, and she, she actually worked alongside John for many years, so she's got that thought. And another reason I was in Sydney is lenders, Gosh, they've got so tight on a lot of the criteria for lending assessments and mortgage writing and some of that includes having to have a real face to face and not a face to face over Skype that I often do with clients, make sure they're not fraudulently trying to pretend they're someone else. And we send our clients into the bank to be identified because we believe the bank should trust their own stuff to identify people. But NAB is a little bit different. So on Friday my taxi driver was very happy, drove me around for a couple hours and got $150 fare and I went and took selfies with people that we went through full assessments with. So, you know, dropped off some Ferrero Rocher chocolates and said hello. So that was interesting. And I have to say I, you know, I'm a mum of a 8 year old son and I probably failed in the mother of the year. You know, mothers are quite competitive, you know, best child and student of the week and Smartest, brightest, cleverest, talented, singing, dancing superstars and you know, it's, it's hard to compete sometimes. But I, I had an epic fail night before last, John.

But yeah, go on, get to the bit where you fail.

Well, you know, it's the end of year, everyone's kind of emotional, we're all tired and, and 8 year old boys seem to be more so a little sensitive and just almost getting to the good night, go to sleep stage. And he said to me, you know how we don't lie in this family? I say, yeah. So we have these kind of rules. You always try your best to be your best. Don't lie and we don't keep secrets. And I said yes. And he said, so anyone here is a spoiler alert. There's a Santa spoiler alert coming up just in case. Tune out now if you don't know the Santa secret. Yeah. So he asked me if Santa was real.

Ah.

And tough one. And mummy, you know we don't lie in this family. There's eight and I don't.

I like the way he set that conversation up though. It's quite clever.

Yeah, he very. Yes. And so, you know, I don't know the age when you have this conversation. I can't remember the age. My.

Well, if you had brothers and sisters, that was really young, wasn't it?

Yeah. Ruined it for everyone. Well and my pa Diana told me today when I shared the story with her that it's usually 12. So now I'm feeling horrifically bad mother of the year. But anyhow, so I started with. Well, There was a St Nicholas and you know, he was a real person and he made toys and he took them to local village and he died. And then I got this, he's dead. And let's just say it deteriorated a lot. And between 2 and 4am there was sobbing that occurred that that was part of. Wasn't worried that the presents weren't coming from Santa. But we had lied to him for eight years.

Yeah.

And people were laughing at him for the last eight years when he ran down the stairs to say Santa's been.

And he's been coming down the chimney.

Yes. And so, you know, the thing is it made me think, but here's the worst thing. He lost a tooth that day. So he had the tooth fairy out as well. And he did say, what about the tooth fairy? And we just went, it's sleep time now. And we'll talk about that in the morning.

We'll have that question.

And then we had this. Was that you who wrote the note from the tooth fairy last time that said my room is too messy and I'm not dropping off the money until you clean it. I said, could I do that? But anyhow, yeah. So it made me think, though, because I've had a lot of conversations and you said something quite interesting recently when we were interviewing for a new position that we've just filled here at your property success, and you were describing a lot of the people we talked to were refugees from other courses or other educators. And it really resonated with me. And in the last three weeks, I've had, gosh, you know, over 25 calls with people, discovery calls, and gosh, so many of them are refugees from other places or education facilities. And what really struck me is a lot of them had been sold this dream or this myth, like the Santa Claus myth that you kind of just believe, which is if you buy property, you will make money.

Yep, yep.

And it really reinforced to me a lot of people have been lied to and when. And I unfortunately seem to be the person who is breaking the Santa Claus myth. Myth for people.

And you're the Santa spoiler.

Well, Effie from Money magazine says, jane, we need a meat and potatoes story and you're the meat and potatoes boring person. So I, you know, I tell it as it is. We don't lie in our families and I won't lie to you. And. Yeah, so that was, it was really difficult, I have to say, because the conversations around breaking people's myths about I've got a property and it should be going up the value, but it hasn't, but I think I should be able to pull out money. It is difficult. And those who have part of the your property success club or have spoken to me or in the ultimate guide to renovation, you know how important and the importance we put on locating the property is. And a lot of our conversations on these calls around locating property and a lot of the interviews I do is about where to buy and what to do. So you might have seen me on Money magazine last month and I did a call on the weekend with 4 People BC in Brisbane with Kevin Turner. And you know, it's just, it is sad, but sometimes we have to break the myth and just buying a property doesn't make you money. And some people have been lied to for years and longer than eight years in some cases. But anyhow, no harm, no foul. We're all friends back in the house. And, you know, sometimes people have to be told what to do. And in actual fact, I Had a meeting yesterday with the ex CEO of probably the second largest mortgage broking company in Australia. And he asked me advice for his son in law on a property that he was sold from another property person who sold properties, house and land packages and he had bought two and they were going nowhere. There was huge vast pieces of land around them that could be developed at any time. They weren't renting and you know, there was a million dollars of borrowing capacity that was eaten up and it was do you hold it until maybe you make money or you get out? And a lot of people don't realise that it's the opportunity lost of where you could put that money somewhere else to make money. And you know, as you know I spend a lot of time looking at locations and doing analysis on them. And you know, in the last year we were last, as I shared with you last time, for the first time ever we, Todd, my husband and I have sold a property and based on the fact of having properties in the right places, our portfolio hasn't gone down in value. Having even sold that property over 12 months because of the annual growth of over 22% that we've had across the portfolio.

Great.

So you know, I guess in summation, not mother of the year, let me put it that way. Bearer of bad tidings for some. But sometimes you have to hear the news.

Yep, that's right.

So yep, that was me.

Very good. Poor old Max.

Tooth fairy and the week before Christmas too. Anyhow, well, let's get on with the call. I know we've got a lot of questions and look, some quick housekeeping here. If you guys are on a computer, if you're having problems. I've had a few people saying that, that the. Can I just say this? Max told me this morning when I told him that if you don't believe you don't receive, then he still believes. So I think there's a way around it as well.

Oh well, you've lied to him now.

I said if you don't believe, you don't receive. It's simple, I still get a sender present. But anyhow, and thank you Lorraine for that endorsement there. I think I did okay, kinda. Anyhow, so if you are having some problems and a couple people said that, you know, sometimes they have audio coming in and out. We're ambient and we're hard coded in, not WI fi. So if you have some problems, try to, try to maybe call back in yourself. There is a telephone number. Sorry, there is a telephone number that you can call and I'm just trying to see if I've got that. Or you can use a Skype account or, you know, phone in. Look, if you are on a PC when it comes time to have a chat, it looks like this. And if you have a question, all you need to do is raise your hand by pressing the little hand icon in the sidebar menu. It's quite small, kind of hard to see. So clicking on the hand will notify me that you have a question and when it's your turn, I will unmute you. When I do unmute your line to take your question, you will get an automated message that says your line has been unmuted and then you know that you're on. You can also ask questions by writing your questions into the question box at the bottom of the control panel. And I also try to get to these if we do have time. But I really do give priority to the spoken questions now. That's because it's really a lot easier for me to understand a question fully and get to the bottom of it of it if I can ask you and we can have a chat in real time. It's also a lot more engaging for everyone else if we can hear people talk rather than me drone on and, and John throw, throw in his thoughts whenever he can get a word in. So as I said, you know, there's no such thing as a silly question. I really encourage you all to make the effort. And I do get a lot of emails after these calls, people saying, gosh, I'm so, I'm so glad that person asked the question because I've been wondering that for ages. You know, you don't have to wait, jump on. You know, as I said, these calls usually go for about an hour and a half. I just ask you for the sake of the group that if you do have more than one question, do a quick follow up question and then put your hand up again and we'll get back to you if we've got the time. And of course if you've asked your question and I haven't fully answered it, as I said on the microphone, you can let me know but you know, let me know. And if you've got a follow up question or anyone has something to add, please do. We have a lot of very clever people on the line. I can see there's a lot of you here that could help out. So often I get some help from the sidelines as well. So please feel free if you've got some thoughts to throw some things in. We rarely get stumped, but we don't know everything. And lastly, just a reminder that this is not a technical support call. If you have any problems with a video, something doesn't download, login issues, I really can't fix it now, but if you do have some kind of problem like that, but please email my team@supportourpropertysuccess.com and we will get the right people to help you. And I guess that's about it. So, you know, as I said previously, there's the ultimate guide to renovation. Students joined us at the end of September, didn't they? We have that course available for seven days in March and seven days in September, and they've been working through one module a week for the last 12 weeks. The 12th module came out last Thursday, and that was kind of like the tips and tricks and. And bringing everything together. And it's. It's a simple little module, but it's amazing how many people give feedback on how powerful that is.

Yeah, people like that. It is. It's. It's one of the shorter modules, but it's just. I guess it's a bookend for the course and it's. And a bookend for your renovation, too. Going back there and just finding out how you did and. Because if you don't, what's. How's the saying go? That, that's, that's. That's not measured, is not managed.

Yeah. And, you know, one of the things that, that you told me that you did with your last box at the back, which, you know, is in the course and is really an interesting part of the process, is that because, you know, when you do renovations, you usually do more than one, and you plan to do more than one. And what John has had. Well, explain how you get people back in after the job's finished.

Yeah, I started doing this a little while ago, a few years ago now, as when I'd finished the job, because the goal is always to try and get a good crew of guys and girls sometimes to. So you don't have to put up with the unreliable tradies, you know, and you get the same guys. And I, having said that, I always do get quotes, because sometimes, and not just tradies, but anyone you, you know, any contract that can sometimes become a bit. Little bit complacent if they've been working with you for a long time. So I still always get quotes, but my aim is to try and build a team of people that I can use over and over again. So what I do at the end of the job is actually invite new tradesmen in and get them to look at the finished job and perhaps quote on the benchtop or quote on the floorboards or what else the kitchen, things like that. And I'd literally, I'll tell them up front, I'd say listen, I'd like you to come and look at this place. We do X amount of Renault's a year. I'm interested in finding another cabinet maker that I'm working with. I know it's a bit strange quoting on a finished job but normally the.

You know, they know there's no variation as well. They probably love it even more.

Yeah, that's right. So there's, there was never ever, you know, someone who knocked me back. But so that's what we did. And doing that kind of method I've, I found different ways of using stone. For instance I had a stone mason turn up and he goes oh, you don't need to use that Caesar stone. I can get you stone which is, you know, two thirds the price of that. And so then we moved to using a Chinese made stone which is still very high quality but looks identical. And yeah, there's lots of, lots of things like that that come up doing it that way. But it's, it's just that going back and, and I've always got the, the estimated in the actual column in the spreadsheet, the budget. So you've got a, a kind of short list of things that you can look at straight away anyway. Because if you, if you've got all the ones marked in my. When they're higher than the estimated one in the actual column. Yeah. And flash. So you go back and you try and work out well, was I, you know, been over optimistic, overly optimistic or did something go wrong? How could I avoided it? So it's just good to have that, yeah that accountability at the end to go back and, and see how you can improve. So.

Yeah. So anyhow, well done guys who have finished off the, the 12 modules. As I said before, you've got lifetime access to those. So you know, don't stress if you're hearing this then you're only up to module three. Sometimes, you know, you get to the stage that you need to be at and sometimes you need to go back and review. And we've had. Usually we find that a lot of our past students, the alumni actually come back and talk about going through the course at the same time with the next group, which is nice. Complimenting the private Facebook group.

Yeah. Often I don't know how many times I've heard, I'm going straight back through it again. They get to the end and go back to the start.

In actual fact, we had the location masterclass as a bonus to the ultimate guide to renovation. That's really where I get down. And the people in your property success club, you've probably seen this in the dot map, that's a component of that. And we get down to price pin map and we really get into a lot of detail in the suburb analysis. But can I announce.

Yeah, go ahead.

In February, guys, we're looking on Saturday, February 20 actually we're looking at doing a whole one day mastermind for 12 people. We're going to sit down in Melbourne and take on the Melbourne suburbs and we're going to dot map together.

And just for Melbourne the first time, just a bit of a pilot but. So if you imagine the location masterclass spreadsheet plus the dot map and 12 people in a room that you kind of.

You got us.

Yeah, that's about it. But it'll be, it'll be really good I reckon because we'll be able to dive right in and plus we've got all the tools, you know, the Residex, the RP data, the Ripe house that.

We can at our hands and I mean even if you're not looking in Melbourne, maybe learning the process might be something for you. So yeah, if you're interested, send us an expression of interest. We'll let you know in January, but which is exciting. And we have a new person starting in January who's going to be helping us out as well in some video editing and we're looking at hiring in the first quarter. So we're looking at a customer delight part time person here in Melbourne and a infusionsoft it kind of expert as well. So yeah, put your thinking hats on. If you hear of someone who's interested, let us talk.

Yep.

So shall we get to the questions?

Yeah, let's. Well, we've got, let's see if any hands are up first.

We've got Jarlith there, he's got his hand up and he's written in the box, Jarlith, do you have a microphone? I can't see any audio. Please come to Sydney and Newcastle and do a dot map. Yeah, Lorraine is on the cards.

Yeah, he's. I can't seem to. Not connected to audio. It says here.

Okay, maybe he's just watching Jollif. Can you type in the box if you're able to chat to us or not? No microphone Sorry guys. Aha. There you go. Well, I do have the question from him that says how can I find the predicted growth on suburbs? And if a property is on the market for over the medium value, where is it best to start at negotiation. Jarlith, as I mentioned earlier, one of the first areas that we have to get the information from is Residex. And you know, if you go into Residex you can actually buy suburb reports and the suburb reports around about $90 and those reports will give you information around the predicted growth. Now we've got a couple of questions that people have emailed through this evening and I've actually pulled out some of those reports so you can have a little look at those later. But I might just get you to remake me the presenter there, John, if you want to try to do that. But one of the areas, Jarlith, so obviously predicted growth, you can go to, to that area. Your question regarding, you know, where do you, you start your negotiations? Because that can be really difficult and one of the things that you can do to start your negotiations is actually go to have a look at a website called Invest Smart. So investsmart.com and I might just get you to pull this up, John, if that's okay.

Yeah, I'll just bring myself back. Doesn't seem to be switching across to you.

No, just so disappointing because I have so many exciting presentations here.

Okay.

Investsmart.com so what I'm trying to show you here, Jarlith, is where you can get some information about where you can start negotiating. So this is the homepage. Looks a bit confusing. If you head over here to research, You'll see property. So just click on property and put in your suburb. Do you want to give us a suburb that you want to have a look at or I make up my own Kingsford that I do all the time. Okay, well let me. No postcode from Jalice. So let me put in 23.2. Good old Kingsford. Have to say, you know, when we started putting this in it was around 600,000 medians and now it's some obscene price. So if I go here to houses, this is one of the sources of information that you can get discounting from. So this tells me here that houses are being discounted at about 7.55%. The interesting thing about that is that 7.55% gives you an indication that, you know, if you've got an asking price of, you know, let's say $500,000, then 10% below that is going to be $50,000. So that's where you may start if you're negotiating now, what you find is when you're in a really fast moving market, the discounting comes back to zero, for instance. So you know you're not actually getting any discounts.

Or minus.

Yeah, or minus. You're not actually getting any discounts at all. So you know it's not possible to do negotiation. You kind of jump in boots and all and get it. But this kind of gives you a little bit of an indication of what's happening. So this kind of measures the property going on the market and how it's being sold. Now. Pardon me. If you have access to RP Data Professional and RP Data Professional allows you to go through and what it does is it shows you the properties when they listed and the listing price and it shows you what they sold for. So there's actually a really kind of live market analysis. And that information about sales is usually updated within 24 hours from real estate agents as well. So you sometimes this data, this discounting information is a little bit slow but you know, RP Data Professional allows you to jump in and look at that live information. So all good? Yeah. So I hope that helps. Jarlith. So that's where you would get that information. I might just. We've got another question here from Christy. I might see if I can get my.

Give it another go.

Yeah, like computer making me an organizer. It's all very exciting. So do you want to read Christy's question?

Yeah, let me have a look here. Okay. I'm currently searching for my second investment property at the moment and I'm trying to find a place which is positive or neutral cash flow, but it still has to be good predicted capital growth. I've narrowed down my search to Moreton Bay, Queensland area and in particular Morayfield or Deception Bay. I'm happy to renovate or purchase something that doesn't need anything done to it. In these areas I can find properties which would achieve positive neutral cash flow. However, I'm not 100% sure how to go about researching predicted capital growth other than Residex reports. I do know that Residex predicts 9% growth for Morayfield for the next five years. I would love your advice and opinions on these areas.

So yeah, Kristy, thank you for your question. So I guess the thing here is around the query is really about where you should buy and what you should do. So one of the things that just going to make sure that I'm muted here and make me a presenter.

Get.

You to make me a presenter, John.

I thought you should be there.

I think I've just logged out as another person and logged back in.

Oh, I see. Okay, let's have another go. I'm gonna bring it back to me. For some reason it's just playing up tonight, isn't it?

Yeah, it's one of those things.

Okay, I'm coming back to you.

So what I've done, Christie, is I've gone through and I've purchased a couple of reports for you and I've made those reports available. I think you might pop up. I think you might find my name over here. Okay, let's see if we're going to make this work now. So what I did is I had a look first and foremost at the report for Morayfield and I then had a look at the report for Deception Bay. Now, as you saw in the Money magazine, Morrowfield had a predicted growth that was around 9%. That was for that eight year growth, which was really attractive. Deception Bay, I've pulled up the growth reports and I'll send these through to you, Christy. But in the next five years they're talking of 4% growth and in the next eight years they're talking 4% growth as well. From a capital growth point of view, it's really. This information can be misleading. No one predicted the gfc. Everyone thought the world was going to continue beautifully. We had a bit of a downturn in the market and then an upswing after that, and none of that was actually anticipated. I guess the thing is, what I'm trying to tell you is there's a lot of information that goes in to try to do these predictions. And when I spoke with the Residex guys on Friday, they were talking about the fact there's like 14,000 suburbs or 14,000 areas that they have, that they have the prediction data for. But then they go through and they take out suburbs that they think there's not enough sale data or for instance, you know, there hasn't been enough activity in the area or it's less than 10,000 people in the population. So things that would really have investors going, look, you know, we would really cull this. So from the 14,000 or so suburbs, they come down to the ones that they think think are, you know, the right, the right pieces of information. The problem with that though is that, you know, we've obviously, you know, taught you guys and showed you guys how you can go through and do the interrogation yourself. So, you know, when we've asked for this information from Residex for next year to go into the ultimate guide to renovation information. We've actually asked them to give us the full 14,000 because, you know, we know how it's possible to go and do the interrogation of how many cells and et cetera, that do occur. So just from that point of view, I think that looking at the information and the raw information is one thing, but you need to go and do the rest of it. So these prediction reports that you're getting are not the culled reports. This is the whole 14,000. So you don't know if they're out of the Resx kind of range or not, because we do that data. So there's been a lot of interest around Morrowfield, been a lot of interest around Deception Bay as well. And just looking at them and looking at the, the data around them and even speaking to John Jacob Field from Ripe House, he's, he's always on chat, chatting to people and helping them out with learning how to use the tools there. And he recently told me that he's getting a lot of inquiries around that deception base. So, you know, I think that there's some opportunities for people to look in that area. And I finally worked out my IT whilst I've been trying to chat. Multitasker. But so here's the information that I have around Deception Bay. So that's that 4% and 4%. The interesting thing here, and when I look at it in combination with the morayfield information, so 9% and 7% percent that, you know, has come up here, you can see here that the majority of house prices are within that 3 to $400,000 range. And you know, we still have a good 70 that's in the 200 to $300,000 range. But we come over here to Deception Bay, we're still up around 200. So we had 220 or so in Morayfield. And over here in Deception Bay, you know, we've got around about 200 in the 3 to 400. But there's a surprising large group of property sales, 140, that are in the 200 to 300 range. And when I saw that, when I was kind of thinking about your question where to buy and what you're looking for, it really made me go back to the pricing disparity question, which is what we're often looking for in renovation. And you've indicated that you're interested to potentially renovate. And if I was going to compare the, you know, the two areas, although there's 4% growth predictions for The Deception Bay area, I wouldn't necessarily disregard that because there seemed to be to me a higher potential for the pricing disparity because there's more price sales between that 2 to 300 than there is if we jump over here in the Morayfield. So you might find that Morayfield, you know, there hasn't been a lot of turnover stock. Well, we can prove that's wrong because there's been over 200. It might be a small population. So, you know, once again, you can do the information on that. We know that's not the case. Deception Bay and Morayfield are both, you know, over 30Ks out from CBD Brisbane. So, you know, you're almost comparing like with like. I haven't been to Deception Bay, but I've spent a bit of time with my mate Joe at Morrowfield and, you know, I guess it's about knowing. Getting to know the area by doing that interrogation as well. So I think when with your question, you know, you, you were after. How do you do the, the, you know, the inquiry. Can you just click on that for me so I could just pull up the rest of her question here, please? Yep. So you were talking about, you know, how do you find that achieve the positive neutral cash flow? Well, you know, once you start doing this interrogation, you get down to the fact that then you start looking at the rental yields. Rental yields here are both quite healthy. So let's just have a look at what we've got here with Morrowfield. So we've got some. This is the past growth. So there's been some significant growth over the last 10 years. So we've got some low growth periods. And then we've got some movement. We've got the rental yield over the last year is 5.5%. And we jump over here to Deception Bay and we have a look at the information there. We've got the rental yield up here around 5.6%. So they're both kind of like for like as well. So, you know, I think that it comes down to not depending on one piece of information. And as I said, you know, the Residex prediction reports, they may not always be using the data because they've gone through and filtered it out. It's our job to filter as well. So I think that there's a lot of activity in that area. There seems to be a lot of development up there. There seems to be the infrastructure to support it. I don't know that much about Deception Bay, but my discussions with Jacob have been that there's A lot of people looking up there and it would seem almost to me, just looking at some of that data that there might be more of an opportunity for that pricing disparity.

So I remember John Edwards saying to you that the report he least liked was the prediction report because people took it too literally and they didn't do all of the other stuff because there's lots of things that can influence that prediction thing one way or the other.

Yeah.

So you do need all those other factors going for you.

So yeah, so look, I hope that helps you Kristy, but you know, obviously you're doing a lot of work. I think I've seen your conversations going on in the private Facebook group. Group. I know I've been part of a few conversations around that Moreton Bay area. So yeah, keep looking. I hope that helped.

Well, we might as well leave the screen with you because the next question is by Hayden and I reckon you're going to be back with Residex again. I'm predicting so. My name's Hayden. I'm a student of the ultimate guide to Renovation. Firstly, I'd like to say that I've taken a lot out of the course and I think that John and yourself have done a great job putting it all together.

Thanks Aidan. That's a nice Christmas present for us.

Yeah. Hopefully it will be a great springboard for my property investing career. Saying this, I feel like I've been going around in circles a little bit, doubting myself and asking myself a lot of questions, unsure if my strategy will work out. I feel like we've now settled on a strategy and a way forward but if possible I would love a second opinion. I plan on buying with my brother in law. We have a five year plan. We would like to buy two properties in this time, renovate, then sell them after approximately five years and go our separate ways and buy our printed places of residence. Basically, we're trying to build some equity together. Buying criteria we have set is to buy a house within 20 kilometres of the CBD with an exception to looking along the bay. So probably a bit further out along the bay. Minimum rental yield of 3.5%, predicted capital growth of 5% over five years. Vacancy rate of less than 2% and greater than 25% of renters. We've been in touch with Lisa from ICM and we have a budget, Investor Choice Mortgages and we have a budget of $530,000. After completing the dot map, I think.

It'S going to take longer to read this than it is.

It's going to be a one word answer, isn't it?

It's like good on you.

Yeah. After completing the dot map exercise in module two, we have narrowed our search down to two areas, Albion and Seaford. Both areas seem to fit the bill and look like they have some pricing disparities. Now the next step is the price pin map. To investigate this further. We are unsure of which area would suit our strategy the best. Obviously we would like the highest capital growth over the next five years. If we look at the Albion area, we would be looking at buying a period type of home. And we'll probably look at. And we'll probably look at sunshine north and west as well. Sunshine central looks out of our price range as there doesn't seem to be heaps of sales in Albion. Hope this makes sense.

I think Hayden might even be on the line. We could.

Oh, now you tell me.

We'll see if he's got a microphone but you probably see me playing around with this little funny spreadsheet in the background.

We can see Hayden. Hayden, you've got a microphone. Just put your hand up if you, if you can chat.

Yes, you can. Hey, Hayden, how you going? Merry Christmas.

Yeah, Merry Christmas to you.

Thanks.

Sorry, that was a bit of a long winded email.

It wasn't until the end I realized that I saw your name earlier and I thought, but John's doing such a good job.

You did a great job, John.

Thanks, Aidan.

So, Hayden, you buying with your brother? I like this that you've really, gosh, solidified this strategy in the sense that you're going to get together, you know, there's a time frame of five years and you've got a plan to create some equity for then you to go off separately to buy your own homes.

Yes. What's the plan at the moment? So obviously things can change, but yes, perfect.

And I think one of the things I jumped onto this, as you can see that little spreadsheet in the background, but I jumped onto that just before this call because I thought, oh, I don't even know. I said to John, where's Seafort? I have no idea. I know it's not around, I know it's not around, sunshine, because I used to work out there and I never drove past it or saw signs to it. It's like, no, no other direction. And it was funny because I kept, I kept having to interrogate to find it and I had to go 40ks out to find it. So I know that one of your buying criteria was like the 20K, you know, from CBD. Now this is just an online version that we're trialing to for next year that is exactly the same as the location masterclass spreadsheet that you'll find in Module two. So don't think I've got something sacred here. So I should have just hit on the map and found out with C40. So if I go here and I click on so Albion is 13.7ks away from the CBD 428 median price and C4 is 36.7ks. So I'm just going to take them to the next stage. So, you know, when we talk about the dot map and understanding the neighboring suburbs, it's important to see what's happened growth wise and what's happened with the neighbouring suburbs as well. And it's one of the interesting things that the Residex guys were telling me about the predicted filters that they put on their predictions is that, you know, sometimes they know they're not right because there hasn't been turnover in one suburb, but there's been a lot of turnover in surrounding suburbs. So in theory it should stay in, but it's just one of their rules that, you know, less than a certain amount of activity and that property goes out. But you know, because you've. I believe that you understand the implications of buying with another person and hence why you're not buying your home, you're waiting to buy a home. And for those people who are on the line and may not have a little insight to that, I'm just going to jump back to that point because if you do buy with another person, essentially you're taking on the same a guarantee that the other person will pay their part of the loan. So in your mind's eye, you might think we're going to buy something and have a loan of $500,000. I'm going to owe the repayments on 250 and my mates are owed the 250,000, the repayments and other 250,000. You can't get those $250,000 loans with separate banks. You have to be joint applicants on an application and with the same bank, because there's only one title of sale that the bank takes or title for the property the bank takes and puts in their vault, essentially. So you're actually guaranteeing that the other person won't default on the loan either. So you are liable for that. So if you do buy a property and let's say there's a $500,000 loan and it's a $600,000 property and you have a $500,000 loan. If Hayden, you went to buy your home before you sold this, the lender would take the full $500,000 debt, but only half the rent, because you only own half the rent. Now there's some lenders that do this a little bit differently and AMP is one of them. And if you can prove that the joint applicant of another property actually can pay for their part of their property themselves with one pay slip, you can show that then they will let. Let you basically only cover, you know, the $250,000 debt that you have and obviously only take the, the 50% of the rent as well. So a little quirk, but be aware, AMP was, you know, the lender that put everyone's interest rate up by 0.5% recently and left the market for six months while they regrouped with the APRA changes. So, you know, just buyer beware there. But it's an interesting concept for those who are going that way. So Hayden, back to Albion and Seaforth. So let's check this out. We've got Albion, Seaford, sorry, Seaforth, where I've got a property in Sydney, and Sunshine west and Sunshine north thing I.

Like that when you're coming straight out of the dot map is just going straight to the 10 year growth column and having a look at those ones that you can see on the dot map surrounding it and just checking out immediately what their 10 year growth is. So you can kind of see, oh, if the ones closer to the city have been higher the last couple of.

Years, one has got 8% and this is 13.7, so that's closer. The city's been higher. So interesting.

Nice first reference point.

So obviously Sunshine here, as I said, we're testing this a long way from the city. Yeah, and same here with C4 there, you know, we've got what, Carrum and Patterson lakes that are a little bit closer. And to some extent the growth is kind of the same. Even Caram Downs, which is just a little bit further out, the growth hasn't been the same. But you know, we're looking at also quarterly growth. There hasn't been any significant differences there. We've had Sunshine north actually drop a bit, which means that the interest there has come off. There's been a lot of interest in one year. Now this in the last quarter could just be down to the fact that, you know, the APRA changes are affecting what's happening there. I know I met with a buyer's agent, Gosh, early 2014. And they were pinpointing sunshine. So, you know, this area has been a bit hot for a while. Turnover and sales volume. You know, you want to be able to, you know, you want to be able to make sure that you're not spending every weekend out there. And, you know, with only one sale per month, for instance, so, you know, some concerns around only four sales here that we've seen 6.5%, four sales in the quarter days in the market, percentage of renters. So this. These all tick your box with the. Well, 23% sunshine north is a little low, 22% sell, little low, 31.5. But let's just take it through and have a look at the next lot of data that we have here. So we've got. Of these four areas, so we're looking at the sales for the month. So that was for the month, sorry, the four and the eight. So, you know, there's more sales down there in Seaford. We've got some breakdown and this is some great information that was brought to us from Ripe House. So, you know, we've got this information here that talks about the fact if you did. If you could, under the same roof line, do a renovation and add a bedroom, if. Is there any money in it? So you'd look at this and you go, there might be some here, you know, in it. There might be. There's probably nothing in it here in Seaford. You know, Albion's got a little bit of potential there, so. So, you know, that's kind of promising. You know, these sales data here, when I see zeros, I always go back and check. So I'd be checking that personally in my RP data professional and just seeing what's happening. Rental yields. So the yields a little bit better in Sunshine west and Seaford. Looking across here in some of the suburb data, you know, days in the market, suburb data here, I'm looking at vacancy rates, days in the market, total dwellings. So there's not a lot of dwellings up here in Albion, where we've got more down here in Seaford. Days in the market, you know, it seems to be a bit more activity here. 90 seems low, you know, lots of renters. So this is kind of, you know, giving us an idea of, you know, what's happening in the area as well. And then just getting a little bit of demographic information. So, you know, everyone takes the train. The median age is roughly the same, a little bit older down in Seaford, which would indicate potentially a more established suburb. We're looking here at, you know, some of the employers, just to get a feel for what people do. So this is the kind of information that I would start looking at and go, you know, there's a few questions I have around that sunshine north, north and west that I want to validate around the sale data. But yeah, Seaford and Albion would definitely be areas that I could take forward. And then I went and purchased some Residex prediction reports on the area. So I guess what's. It's kind of disappointing when you look at this straight up is that there is the 1 to 3% growth predicted in the next five to eight years. So this is kind of inflation. This is like nothing's going to happen. But having said that, you know, Melbourne Metro, if you look at the comparison, they kind of say nothing's going to happen in Melbourne either. So they said nothing was going to happen in Sydney last year and look what happened there. So. So we know that the Sydney market is coming off. Eliza had some interesting thoughts about the fact that she did think there was potentially some negative growth that was going to happen there rather than just a slowing of growth. Melbourne still has some legs to it and it's probably a quarter or so behind the Sydney takeoff and there's a lot more integrity around the house market than the unit market.

I'll just pick up on that point where she said there's potentially some negative stuff. She was talking over a long time time period too. She's talking about over a five year period, I believe when she said that. So it wasn't. She wasn't expecting it.

Like, you know, money.

Yeah, that's right.

And if you think about it in Sydney, 40% growth in two years. There's no way that in the next two years that she saw 40% coming off the market value, you know, a couple of percent. That was the discussion. So this is Albion, let's just jump over here to C4, not much of a difference. So, you know, there wasn't any significant changes here. If I just look at, you know, the market price here, we have a lot around 80 properties, around 40 to 500 in the last 12 months. Around the same three to 400, around the same two to 300. So you know, that's 240, 250 properties there. Here in Seaford, according to this, a huge amount of turnover over 500 in this price range. So you'd have to say this was definitely the genetic generic price range. A little bit below and you know, a little bit is 300 properties, which is actually the addition of all of these here. So a lot more activity is happening down here. So if we had a little bit further, and I'll send these through to you, Hayden, but if we had a bit of a look up here of what's been happening in the last, you know, three years and 10 years, they've already had a bit of growth in the last quarter, has been quite good in the last year, 4%. So once again, there doesn't seem to be a lot in the fact that, you know, that we've got that one to 3% being repeated here. If we go back up to Albion and have a look there and we've got the 3% last year I think was 10% that we saw over 4, so 3, 7, 3.74 and 4% in the last 10 years, 3.84, 4.2. So they're actually very, it's interesting that they're so far apart, what 60 km apart or so, but very similar statistics and the fact that you found both of them and looking at them, and I pulled also Sunshine north, they had even less predicted growth and as did Sunshine West.

It's a lot lower than what I.

Expected, to be honest.

Yeah. And you know, it's kind of funny, as I said, what is it now? Almost two years ago, buyer's agents were targeting Sunshine and I realized, you know, Sunshine proper has probably gone off. But yeah, it's, it's really interesting to look at that data and, and I guess try to get a feel for what really is happening and you know, going through the location masterclass spreadsheets and just getting a feel for what your criteria is. And I think you said you wanted a rental income of 3.5%. Well, in theory we've got that here. Potential growth over 5%. None of them have predictions to do that. But this is where you have to take the information and go, well, what do I know about the local economy? One of the things that I particularly like about that sunshine area is that, and this is a, this is probably not fitting into your five year plan, but I think it's probably a 10 to 15 year plan for the area. If you think about the ripple effect, if you think about a wagon wheel and the ripple effect. So you've got the, you know, there's a drop in the pond in the center of the CBD and the ripples spread out and what actually happens as well is you've got faster than those ripples go out is the wagon wheel effect, where you've got them going out spokes, which is on those infrastructure lines. So, you know, a lot of that, that western ring road has connected those areas out in that western area very quickly to the city and you know, even more expansion plans out that way. And you know, we've all heard about the western population growth corridor corridor and I think what we're going to see is that, that we're going to see that ripple effect push the prices up in this area. But then an interesting phenomenon is going to happen and that is that population corridor that we get where all those house and land packages, the tenant, what do you call that, like tenant tenant. What's tarne?

Tarnet. Yeah, yeah.

Obviously shouldn't have had that beer, right?

It was honey one like.

No, Tanit must have been the Coke Zero. The tarne area, Melton and you know, that population growth area. I think what you'll have is a lot of people buying that house and land packages, their community to work. Their income goes up, they get aspirational, they don't want to be stuck out there, they want to move in. So you're actually going to get some pricing pressure from the backside also of that sunshine area. So you're going to have the ripple effect coming out from the CBD and the backside coming in. I've got nothing to substantiate that at all, John. It's just a gut feel. But you know, I try to, try to think, you know, how if I'm kind of living somewhere and I've, you know, made the most of it and maybe a new immigrant or someone who's, you know, the most I can afford and you're doing the best that you can do and the kids have grown up and your wife's back at work and your borrowing capacity goes up because, you know, you don't have a part time person income and at one full time income you can borrow more and you can buy more and you can live closer to the schools and you know, I just, it makes sense to.

Me move back in.

Yeah. So anyhow, I don't know if that helps you at all in my musings there, Hayden, but it does gets me thinking even more.

I mean, yeah, that, that sunshine area. I was a bit worried about it being as in five years not being long enough. Something that was sort of concerning us. Like we do think it'll go, but we just don't know if five years will be long enough. And it's sort of looking like it won't in five years.

Yeah, look, I did the dot map exercise with one of the, one of my mentoring students. Ben came into the office and we sat down and looked at his dot map for Melbourne and really trying to target some areas. And it was interesting, the areas that we came up under his buying criteria, which completely different to yours, was around that Airport west and that Essendon Fields and all the development there. And I read today that it was the fastest growing area recently. So you know, the media's out there saying this is, this is a really good growth area. And I know that's where he's, he'd really targeted. But you know, there's, it's amazing how it reinforces to me all the time the dot map exercise and just going through this kind of methodology and understanding, you know, what's happening and trying to interpret the data and not just depending on one piece of data, but looking at it all. I mean you could have a fabulous area. And the sales data is two properties a year, which is interesting because I don't know if I can, I don't know if I can link this. Can I link this? Let me just see if I can show you. So as I said to you, the best rent report went on, on sale today from Residex and oh gosh, I have this, this great fear if I start this off now that it's gonna stop my whole computer. If it does, I'll apologize. But it, it was interesting looking at it. There's, there's one area in there and they, they quote this area and they say, you know, in South Australia there's an area that has a 7%, I think rental yield. But the interesting thing was that, okay, I'm going to show you. Oh gosh, I'm getting so much trouble here. So this is the area in South Australia, obscene rental yield 7.17%, eight year predictions 4%. So we're looking at 11% growth. So total yield. But there's been three sales in the last three months.

You know, look where it is right up near Waiala.

And so you can take out. Oh, I've spent, yeah, I've spent some interesting time as a mining engineer in Waiala. But you know, if you kind of look at this, it's, you know, let me see if I can just bring this down a little bit. 230km from Adelaide. You know, you could buy a report like this. And this is why John Edwards is saying he hates these type of reports because you could buy this and go, oh wow, you know, just buy the.

One at the top of the list, go.

But in actual fact, you could spend three months waiting there and you know, there's three houses that come up and you're there as an investor and there's someone there who's got the kids in school and they're in the local council and there's no way they're going to let that property go. And you've got a number, number that makes the money work and, and you move on. Does that make sense, what I'm trying to say here about the, the turnover and why that's important?

Yeah, definitely, yeah.

So, yeah, yeah. I don't, like, I don't want to, you know, confuse things but you know, sometimes the best numbers in the world, the reality on the ground is that they don't translate and that's why we try to pull as much data in here to start those questions in your mind.

Yeah, definitely, yeah. I just got a little bit more thinking to do, I suppose.

But are you looking at buying in Melbourne because you're looking at adding some value through Renault and you want to do it yourself?

Yeah, we want to, yeah, we want to do. Yeah, exactly. It's exactly right. So I don't know if I've got the guts to do the first one interstate and do a Renault.

Yeah.

But now I am starting to think maybe we look interstate. Yeah, I don't know. I just don't know if I've got this first one.

Look, I know that, I know these numbers don't look flash like, you know, we're, we're looking these predicted growth figures and it would make, in itself, it would make you run. But you've got to, you know, it's saying that Melbourne's not going to do anything in the next eight years. We've got property cycles that last five to seven years. Talking to Eliza, Cat's out of the bag. She reckons two years of stagnation and then moving again. So we know that Melbourne's a little bit behind. Sydney is about six to 12 months behind Sydney. So Sydney started to decline. If we're talking three years time, Melbourne comes back. Now, Melbourne did 11% growth last year in their properties, in property values and obviously we're long term investors, but if you've really targeted this five year plan, remember you've got renovation on your side as well to increase the equity which is going to increase the rent. Now you may not have the growth prediction kind of validation here, but keep in mind we've got the information about the fact that we've got this growth corridor. We've also got this, you know, in the, in the west, we've got the predictions that Melbourne's going to be the biggest capital city in 2050. And if you look at the long term, 10 to 20 year growth, Melbourne always outperforms Sydney. So, you know, from a long term growth point of view, we've got the population, we've got the, the economy. So what I, I guess what I'm trying to say is there are pockets within cities and there's pockets within suburbs and there still could be some opportunity. What I like here about Albion is that you do have the lower price point properties there and you know, there is enough of the turnover of stock. You do have the 200 to 300 range and even under 200. So to me that's, that indicates that kind of pricing disparities available as well. So I don't know, I don't know if you should walk away, Hayden, and kind of throw it all in the, you know, throw the towel in on it. It might just be, you might have to, you know, you don't want to make a punt on you. I know you're thinking about buying a couple of properties, you don't want to make a punt on this kind of stuff, but.

And it might be just getting the right, being at the right place at the right time to get the right property.

You know, buy below the market and you've already made your first 50,000.

Yeah. Potentially adding a bedroom under a roof line or if there's potential to subdivide or dual lock or something like that.

I'm happy to look at all those sorts of options, I guess. Yeah. We just keep, keep going with the research, keep looking and go with.

Yeah.

I mean, I do have a gut feel that that west area just does feel like it's gonna happen. Like, like I said, I just don't know if it's gonna happen in five years.

Yeah, that's the hard thing, isn't it? Because it's, it's pretty short, pretty short amount of time in property cycle, you know.

Yeah.

Timing exactly.

Yeah, I suppose.

Yeah.

Instead of sitting on our hands, we just try to make something happen. But, but we'll see, we'll see how we go.

And you know, by acting now, you might still have six to 12 months worth of growth in this cycle.

Yeah, that's true too.

So you know, this is year on year, cumulative kind of stuff. So you might, you know, find that you can do something and you might decide to get out sooner. Who knows, take the equity and run.

Yeah, exactly. That's, that's been very helpful. So thanks a lot.

Okay. Merry Christmas to You and your family.

Yeah, you too.

Thank you. Thanks, Jacques. Okay, let's have a look. No hands up.

No hands. Do we have any written questions?

No, I don't think we've got any written.

I think we had one earlier from Farhad.

Oh, okay. Yes, you're right, we did. Okay, let me see if I can squint and see this. Hi, Jane. I'd like to ask about buyer's agents. Can we use them if we're time poor, have jobs, etc. Do you advise us to use a buyer's agent in order to avoid losing opportunities? I understand the dot map etc is the way to go, but isn't it easier to use a buyer's agent? Are they actually reliable? If so, who do you recommend?

Lots of questions. I think I've thrown the screen back to you, John.

Okay.

Hi, Jane. All right, so I gotta, I gotta be honest with you, Farhad. I had, and I hope I'm pronouncing your name correctly, I had. Oh, you don't have a microphone. Did you tell us that? Do you have a microphone there that you'd like to have it share?

You just check. Chuck your hand up there if you have.

Anyhow, the thing is, you know, I've always kind of looked at buyer's agents and thought, my God, $10,000, you know, that's, that's a huge part of my deposit. And, you know, when I started buying my very first property, you know, I only had like, you know, $45,000 and, you know, 25,000 of that went on stamp duty and I threw another 10,000 on a buyer's agent. You know, we could have been looking at a whole lot different story. So I think the thing is, they have their time and they have their place and they have the value. And it's a relatively new industry in Australia, but it's been an industry in the US for many, many years. And there's some very good buyer's agents out there. Having said all that, I, you know, I had my sister use a buyer's agent in Queensland to purchase and recommended someone to her, and she subsequently bought a property in Melbourne using a buyer's agent as well. And I think they have some pros and they have some cons. The pros of a buyer's agent is that 60% of the stock that they see and they're aware of is actually not on the market and is like the silent, quiet market, which I thought was a whole made up concept until I actually saw a number of these properties with my sister. In Melbourne. And, you know, people didn't want to go through the marketing campaigns. They didn't want their neighbors to know that they were selling. They didn't want people to, you know, didn't have to want to clean up the house every week and leave the house, for instance. So there is a different market they have access to. So be aware of that. Buyer's agents also have the ability of being great negotiators. So I did a bit of a debrief with my sister on her last buyer's agent experience. And she felt she possibly didn't get the money's worth for it. And she was saying, for the price I paid for the buyer's agent, you know, I actually end up finding the property. And I did this. But the buyer's agent went in and negotiated $80,000 less than what she was going to willing to pay. So in actual fact, it made her, you know, a $70,000 profit. So, you know, sometimes their negotiation skills are just extraordinary as well, and you may just get them for that alone. The other thing is that they also, they often have already been real estate agents. So, you know, they know the games that the agents play.

Got the contacts.

They've got the contacts. They have the chat. You know, I know one of the properties one of my clients was looking at recently and really, you know, very keen on looking at the buyer's agent. And they had found themselves, even though they had engaged a buyer's agent, the buyer's agent looked rang up there, the principal of the agency, and said, you know, what do you reckon? And the guy said, don't touch it. Whatever you do, don't touch it. You know, there's stuff going on there that you don't want to know about kind of thing. So, you know, they have those kind of contacts. I think also one of the beauties of a buyer's agent, if you are going to take six months to do analysis in six months in the Sydney market last year, that would have cost you $75,000. So, you know, a $1 million property, 22% median property in Sydney, 22% growth. You know, that's gonna cost you a lot of money, time out of the market. So the buyer's agents, you know, they have the access, and usually within six weeks you have a property. So I think. I think there's. I think there's something there that you might need.

Pros and cons, isn't there?

Yeah, you need to consider. Then there's the cons. The cons is it's Gonna cost you ten grand. You may not like the buyer's age agent, which you should have found out beforehand. A lot of buyer's agents are geographically specific as well, so.

And you've got to pick the right one because some of them have got relationships with, you know, people that, you know, perhaps double income. They're in, you know, middle high management. They're extremely time poor, and the price doesn't really matter that much to them. All they want is the convenience, you know, so if they get them the price, they're willing to go up and those, I mean, that's a really good business model for a buyer's agent, you.

Know, or 70% of people who buy are homeowners, right?

Yeah, that's right. Yeah. So, but they're not necessarily the guys we want to have for our investment property.

I tell you the key in my mind of engaging a buyer's agent and that is understanding your buying criteria. So I'm not sure there. Fahad, if you want to type in, if you're part of the ultimate guide to renovation or where you are, I can tell you where to go to to find some information on this. But one of the things around, and we talked a little bit about this in the negotiation module in your private success club. In the club as well. But, you know, one of the things that you, you need to know is your buying criteria. You know, and beautifully demonstrated by Hayden in the last call. You know, he had a buying criteria of $530,000. He had a rental yield that he wanted a three and a half, half percent. He wanted growth over 5%. He wanted that growth to be realized within five years. He wanted over 25%. Renters in the area like their specifics. If you give that to a buyer's agent, my goodness, this is a tick, tick and flick. You know, does this, does this work or not? Whereas if you go to them and say, hey, I've got 550,000 to spend, they'll go, well, let me spend it for you.

Yeah, tell me a good area for investors. So, yeah, it's that. What does the saying go? It's delegation, not abdication.

So you've indicated in your property success club, you're going to get up to that negotiation and kind of auction stage. But all through the process, the dot map exercise and even the spreadsheet exercises that we talked about, the websites and the Census in modules 1, 2 and 3, you really get an idea of how to build up where you want to target. So maybe you do want to target at South East Queensland, or maybe it is western suburbs in Melbourne or maybe it is rural Queensland or something. There are buyer's agents that specialize in that. But you need to know first and foremost where you want to buy and understand your strategy. The strategy that Hayden was going to do was increase equity through renovation. Some buyer's agents are really good at that. I know where my sister used buyer's agent in Queensland. The specifics were I want to turn a two bedroom into a three bedroom by putting up a wall, you know, and, and she had done that very successfully in Sydney and she did it again successfully in, in Queensland. So, you know, be specific about what you want. I really think they have great value. I think, you know, one of the things that you can do is, is work with buyers agents, find out where you want to work first and then find out, you know, who, who is in the area and if you've got.

Some ideas, ideally one that works with investors that's got that experience.

Yeah. And look, I do have a lot of buyer's agents that I work with through Investors Choice Mortgages. You know, I don't have a financial agreement or anything with them, which some people do, but, you know, so I do, I'm aware and I have worked with many, many buyer's agents. When you target the areas. So you're talking in Queensland, there's some, some really great buyer's agents up there. So what I might do is shoot me an email and I'll send you a list of buyer's agents that you might want to work your way through and have a chat. They do specialise in different areas though, so hope that helps.

Great. Gabrielle, thinking along the lines of increasing a bedroom in a unit. Wondering how you would go about checking if a wall can be moved or a floor plan changed. Live in Sydney, what are the rules, strata or otherwise surrounding this?

Do you want to have a chat about that?

Well, you probably know about more about the strata. I can tell you whether a wall will make the roof fall or not.

Always handy.

Yeah, but so yes, you'd need to. If you're moving a wall, you would need to have it inspected it. So that might just be probably built as the going to be the easiest way for you to do that.

To see if it's load bearing.

Yeah, to see if it's load bearing. And what that means is whether where the trusses or depending on what kind of roof you've got, whether it's got props coming down to the top of the wall that it's actually propping up the roof itself. Often if it hasn't got anything like that, then it's fine. You can move it and it doesn't affect the roof in. Or the ceiling, all the roof, in any way, shape or form. But yeah, that's the first thing you need to check, otherwise you could be in pretty big strife pretty quick. But I don't know much about the whole strata thing. How do you deal with that if you're doing, you know, moving a wall in your own house unit?

Well, look, you know, I've been party of doing that and essentially it does have to go, you know, sometimes you need new bylaws, but it does have to go to the strata committee. It has to be agreed to. You know, the fact that it's load bearing, everyone gets really worried about. So you do need to have engineers, engineers, reports, you know, they do cost a bit, but not as much as.

You, you know, I mean, depends. Maybe four to 600 bucks. Yeah, yeah. And it's. Often, it's not that big a deal, depending. It just depends if. If it's double brick and stuff like that, then perhaps it is a big deal. But if they really just need to put a beam through the ceiling and prop off the next walls, that can, because they're now missing a kind of a prop point for that roof. So they just put a big beam that stretches from one wall to the other and then it just props off that.

So if it, if it isn't load bearing and then removing like a plaster wall is not such a big deal. But you still need to let people know. Some people believe it's better to ask for forgiveness than permission, but make sure you don't bring the whole building down. But yeah, there's the. If it's not load bearing, then it shouldn't be a big issue.

I say disclaimers at this point.

Yeah, disclaimer. Disclaimer, some people say. But yeah, Gabrielle, the. It's interesting. It's a. Yeah, it's funny because a lot of people are looking at putting walls up rather than taking them down and making an extra bedroom and getting a greater rental return as well. And there's just as many issues associated with that. So, yeah, it's possible, but you usually have to go through the strata and before you buy the property, make sure you go through. Look, I usually go through 10 years worth of past reports and if you see them every meeting saying, no, we're not going to let people do any changes, then you pretty much know that you're up against a losing Battle or go and have a talk to some of the owners because they'll tell you the units, the people on the strata reports or the, you know, where they live and you can knock on the door and have a chat to them. They're usually pretty good about that. So. Yeah.

So builders. The first port of call anyway, to see if it's load bearing.

Yep. And Lorraine, you've got a quick question. Says, where's that spreadsheet? Lorraine? That was. That was. That's the spreadsheet we're working about getting the location masterclass spreadsheet that's on in module two of the Ultimate Guide to Renovation. That's the. What you call beta version of the online.

Yeah, yeah. So moving it from a spreadsheet to online, which is.

And we'll be feeding in the Residex prediction reports.

Yep. So it's still looking pretty ugly at the moment, but we're just getting the functionality up. Okay, so I'll just check quickly if there's any more. Oh, here we go. No, no, no more. Hands up. All right, got another question from Lorraine. Hi, Jane and John. There's a lot of talk about sea changes and retirees are back in the market. If so, what are your thoughts on Foster, Port Macquarie and Coffs Harbour areas. Also recently I found house Basic info is showing a good Found house basic info is showing a good disparity from Renault to unrenovated on realestate.com website and then real estate agent says no way you will get that amount. What are your thoughts?

Okay, first question. Coff Sabah, Port Macquarie, Foster. So we're talking about. Look, my parents, I don't think it's a secret. They retired from Dubbo to Port Macquarie recently and my grandmother mainly.

Do you want me to come across? No, no.

My grandmother is 92. And the funny thing about Port Macquarie is I couldn't work out what these charge points were up and down the main street. And they're actually for people's motorized scooters. So you can charge while you're downtown.

Like the four wheeler.

Yeah, right. And then in the actual settlement city, every 50 meters they've got the defibrillator for the heart attacks. And whenever you walk past a chemist, they've got the. I don't know what you call them, underpants that for people who have incontinence up in the main window and they have no shame. They're just pictures of like the full thing there, so you know you're in an older place. Having said that, Port Macquarie has the University A lot of the medical students from New South Wales, Newcastle University head up there. You've got, got a lot of proactive local government got in a bit of trouble spending over many, many million dollars more than they should have on a art gallery. But you know, you've got these kind of forward thinking. You've got big schools as well. There's go zones and no go zones. Lorraine, you probably know we'll put a message out on the private Facebook page because there's couple, a couple people who are in the ultimate guide of renovation who reside and invest in Port Macquarie. So it's interesting, that whole retiree sea change thing and I kind of posed a little bit of that question to Eliza today from Residex and said, you know, is the rise of the Regionals coming? And she actually flicked that to the sea change tree change and the older generation moving out of the big house and to somewhere that they could afford and still have a bit of money. But the having a really good medical area associated with it is really important. So I don't know about Coffs Harbour and I don't know about. What was the other place Foster. Let's have a look. But I don't know about Foster Foster in New South Wales. So I don't know about their medical setups. I know Port Macquarie is pretty big. I know that ports been. I read in. I think it was the daily. Oh gosh, I get so many newsletters every day. I think it was the Property observer, they highlighted Port Macquarie this week. So yeah, there you go. There's, there's some. There was an area that was on the rise. However I've seen it pop up so many times now I'm just generating a few quick Residex suburb reports to find out what the predicted growth is in these areas. So let me just pull those up and see what they're talking about there so that we've got something that we can work with. So. Yep, swap screens. So I've got Coffs Harbour here. Let's see what they have to say about Coffs harbour. Yeah, last 10 years it's moved from 323 to 406. It's had not that many years of negative growth. So it's being heading, heading kind of stable here. This is Sydney. And so growth over the last three years 4%. 10 years 3%. The last year had 5 and a half percent which is obviously the pinnacle of what it's done. In the last year it's had 5.5% rental yield. So you know, it's been the highest amount. If you look at 10 years it's 5.1%. So that's a really good rental return. We've got some median price points around that three to 400 with a lot more in the higher levels and some predicted growth of 3 to 5% in the next year or so. Sorry, 3 to 5 in the next few years and then we've got Foster. So let's just have a quick look. This very similar 385 to 422. Interestingly the negative growth is in different years to coughs average over 3 years 4% over 10 years 1.3% so it really hasn't moved a lot. Rental yield a little bit lower but it's peaking at the moment and it's.

1.3 over 10 years growth.

Yeah and once again 3 to 400,000 and a few above. And let's just have our final little look at Port Macquarie. So we've got port here 350 to 460. So once again, you know nothing staggering has happened there. Growth the yields. Okay once again it's at the peak at the moment and we've got 4 to 500 so a higher price point than the others. And predictions. So we've got predictions of four and four, three and five for Coffs Harbour and we had five and four for, for Foster. So you know some, some growth characteristics there. Lorraine, I think the. We are, we have got an aging population and you had an interesting stat didn't you recently with what you're doing with your development demographic study or about how far people move when they downsize.

Yeah, I mean anecdotally the agents were saying with our property the, the buyer will be within. They'd bet the hat that it was going to be within 500 meters of the property really.

500 meters?

500 meter radius I reckon the buyer will come from and in, in our, in that suburb which is Canterbury and in that particular pocket the. They really don't want to move out and there's so little options for them but there's nothing really in between having a large house with garden and all the maintenance that comes with that and a retirement home essentially. And they don't want to do that. But yeah, I think think there's definitely demand if you can work in the. The word I'm getting from agents is townhouses are going to become more and more popular particularly with a push from local governments to have infield development. Probably not as, as relevant to regional. Yeah regional areas. But yeah the, the, the demand Is there with a combination of the infield development that's got to occur in these, you know, capital cities to accommodate all this new population and the aging population which has got kind of nowhere to go between a big house and a retirement home. There's definitely going to be some demand there.

Interesting. Well, yeah, I think, you know, I look at business trends and where things are going and look at the US and look at you know, things that, that I can bring to Australia make, make money and then out of the property market that's associated with it. And one of the major trends I would say of the top 10 kind of franchises and, and business opportunities that I've seen over the recent years in the US have been that home health care, you know, the angels who come and help the older people, the healthcare professionals that are on the road, the almost like the meals on wheels, the lean cuisine of the older style and then you know, the retirement villages. So you know, I think that there's a lot that can be made business wise and associated with property. Looking at that demographic and looking at where they want to live and where they want to move to and what they want. So finding a typical property, property for them might be different to what the typical property for the area might be. So you might have to do a little bit more thinking.

Yep, it's going to be all around low maintenance and convenience to services and that kind of stuff. We're looking to flip anyway. I'm not sure that predicted growth is that important.

Okay, well forget everything I said then Lorraine because yes, predicted growth is not that important flipping. But as you know when you're flipping your target market is completely different. So you're looking at the owner occupiers and where the owner occupiers live. So pull up that census tutorial and go through where the owner occupiers are in those areas or if you've got access to Ripe House or you take up the 14 day free trial of Ripe House that's coming January your way then yeah, do that and it will show you where the owner occupiers are in those areas because that's what your target market is the predominant resale is to that. So clever strategy in looking at niching into a cookie cutter kind of flipping strategy that targets one demographic.

Great.

Okay, I'm going to give you the screen back.

Okay.

And I do, can I, can I take five minutes to do a little read through?

You can do anything you like.

I see we have no more questions. Okay. So I am like constantly being asked about buying in Logan? Oh yeah, yeah, like, like a lot. And one of the things that I think happens with when people are talking about an area is that they may not fully understand that there's a lot of areas associated with Logan. So talking about refugees from other educators, I've been looking at fact finders for many, many years and often there'll be a. On the fact finder will be someone's investment property that will be in Logan. And I say oh, so you're a student of this group, are you? And they go oh, how did you know? So because everyone went from there, bought in Logan and nothing's happened for the last five years. Well things are happening in Logan now. Now once again probably getting in a bit of trouble here but I was reading this, this best rent report once again for from Residex today and I was interested to see that they had actually targeted three areas that were in the Logan area. So what are we. And I was reading there, you know they do a really great kind of review of the area. So what I thought I might do is read this out to you. So I'm not showing you the actual report. I feel better that way. Nothing illegal here, always keep it above board but read it out to you and just get a feel for the difference, differences in the areas because you know, I think there's a blanket conversation going on about Logan and Logan is not a blanket area. So one of the areas that was in this report was Baronia Heights. Now Baronia Heights I had a rental Yield prediction of 5.7% and it's 27k some Brisbane and it's located in the Logan City Council local government area. Now this is a really big area so it's south of Brisbane towards the Gold Coast 27km. So here's a bit of a description and I found the interesting the descriptions between the three different areas. So originally known as Logan Ridges, Baronia Heights is a new suburb. It's been gazetted in 91. The suburbs, largely residential dwellings, you know, predominantly consists of a single story, three bedroom properties. It's been put on the fast track for the rollout of the NBN in 2017. That's the highlight of Baronia Heights, right the facilities. It has two early education areas. The university is 10ks away and the Logan campus for the Griffith Uni is 20ks away which is almost back to Brisbane if you think about it. Baronia Heights is a Medical Center. It's 20 k's from the Logan Hospital and it has an IGA getting better and better Here. So as I said, you know, these guys do a bit of research for you. The Grand Plaza shopping centre in Browns Plains houses major retailers including supermarkets, fashion outlets. The bushland is to the southeast, lovely parks and you know it's bordering on the east side of the Mount Lindsay highway. Industry Due to Baronia Heights being located on the highway, many residents find their employment in the road freight industry. Many residents also find employment in skilled technical and trade areas and there's a lot of unskilled labour. The shopping center, you know it's pretty good CBD population 7,000 people. Now here's the interesting thing. The weekly house household income is thirteen hundred dollars a week. By nature of some of those jobs they have a lot of overtime in them. So I was thinking about why this is higher. So the median price point for the properties in this area are 333,000. Predicted growth in eight years is 4% and the yield is 5.7%. So we're looking about 9.7% overall yield if you looked at it from that point of view. So an interesting kind of analysis. There's 7000 people predominantly the median age is 30 and the largest age group is 0 to 4 year olds. So we're looking at homes here, 2600 homes, you know, blah blah. They talk at 9, they tell a nice story about, you know, the area and you kind of read that and you go yes, that's, that's okay. And then you go to the next property or next area that is actually on the best rent report and that is Logan City Council. So this is different. So let me tell you a little bit about this area. So I'm just going to find it so I can read it out to you. Just talk amongst yourselves because I think this is an interesting Logan Central houses. So this population, sorry postcode 4114. So 24 sales in the last three months. Median value 303,000 rental yields 6.07% growth predictions 3% in the next eight years. So Logan Central is part of the local government area of Logan City. Logan Central is 26km from Brisbane. It's part of the southeast Queensland region experiencing rapid growth according to the Logan City Council. The council has devised the Logan City Economic Development Strategy 2012-2016. So get that report. If you're looking to speak to the council in this area which aims to enhance the city's economic and improve its transport infrastructure. The economic development strategy will further aim to develop the areas of key administration centre for Logan. So the suburb will attract other Government services whilst increasing the commercial activity in the suburb. The Logan city of choice 2015 project is supported by the council which plans to expand both pathways partnerships, infrastructure etc etc. Here's some facilities. It's got two schools special school and the Woodridge School. It's located near the Logan campus for the Griffith University. There's a range of recreational entertainment including ten pin bowling, an art gallery. It's serviced by train. The majority of residents are labourers machine operators with 38% of the occupations of that type. The suburb is the home of plenty of government jobs as well. There's a lot of restaurants, you know. In October 2015 it was announced a new rollout for the NBN centre happened there. There's 6,000 residents and interesting enough the weekly household income there is only $850 a week. So it takes 50% of their income to make the repayments. So this is kind of building. It talks. You listen to that. It sounds a whole lot better, doesn't it? Then the other one. It sounds like it's got a whole lot more potential opportunity but the growth isn't there. But there's been some commitment and some I guess work in the development of the area and then finally we've got. And how can I forget this Like Slacks Creek. Now Slacks Creek it turns out is part of the Logan city area as well. Median price 316,000. So these median prices are all very similar. The rental yield 6.11 growth a bit better at 4%. It's 21ks from the CBD of Brisbane. It's formerly known as Slacks Creek. It's a cattle grazing area. The earliest days of settlement is one of the oldest settlement settled areas in the Logan district. It's a popular residential area with a friendly atmosphere, affordability for young families and investors. Easily accessible to the Pacific Highway. 2009 the council endorsed the Greater Springwood Master plan which was brought considerable development to the area. There's alfresco dining, upgraded public utilities. The new retail area. You know they've got this incredible medical practice. They're 8Ks from the hospital. They've got the amazing shopping complex called the Logan Home Hyperdome. It's called Got. IKEA has just been busy. They've got an amazing rugby claim. So this is really hyping it up. You know. The residents there are trade workers. They work in local practices and areas. There's a $17 million redevelopment of the Hydrodome shopping center going on at the moment and this is really talking up this area. So there's 10,000 people who live there, their median income is $1,100 a week. So just by looking at this, you know, people that I speak to and it's happening so often that they're saying they're looking at Logan and Logan area. And I was interested and went through and as I was reading the best rent report, I was interested to see the three of these Logan areas were named, but I didn't realize how different they could be. And remember, the person who's writing this report is the same person, one they're talking about. But, you know, we're close to the roads, the highway, and that's the most exciting thing that happens. The next one has a little bit more optimism around the redevelopment strategy plans, and the next one's talking about these master plans and all of these. You know, the proximity to the Griffith University is 1k away. IKEA's decided to build there. You know, so it just kind of, it gives some context to the fact that when you are looking at an area, there are, you know, in a council area, there are different areas within the area. So, you know, be really specific on your research, guys, and understand how important that location is. There's some great reports out there and information and.

Yeah, and sometimes it's just worth, I mean, just the amount of information you had there at your fingertips. Sometimes it's just worth paying to get that.

Yeah, I don't even know what these are.

Saving yourself some time. Yeah, so.

And as part of our being part of our community, you get a 10% discount. We don't make anything off the reports, but, you know, there is a discount code that you can use. So there you go.

I can't see any more. Hands up. So I reckon we can wrap it up.

But I hope, I mean, I hope you guys enjoyed or got some value out of that conversation. I see no one left the room, which is really good because I think it's really important that we kind of put our research in context as well. And, you know, there's some interesting things about. Do you want to just click on that for a sec, that question? But there's some interesting things that you see that information that you can build up. We talked tonight and looked at, you know, with Hayden, some of the spreadsheet information. You know, we looked over with Christy some of the growth predictions and got a little bit more into depth with that. We looked here in some actual physical descriptions of the areas. So I think it's really important. And, you know, one of the things I subscribe to the Residex and Market Facts report and every September I get an annual supplement. And you know, Lorraine's has made an interesting point here and said, you know, sometimes the 10 year growth is misleading, 20 year growth is better and the annual supplement has the 20 year growth in it and that's the only place I can get the 20, 20 year growth from. So you know, I'm a bit of a stickler for facts, figures and numbers as you've probably worked out by now.

But yeah, I like the 20 year growth too.

But yeah, guys, I think that might be all for this evening.

Really useful, says Margaret. Thanks so much.

Sometimes I just chat to myself. Please guys, make sure that you have a look at the your property success newsletter that's coming out tomorrow. I've even teamed up with my personal trainer, John and he's put together a six week online health and nutrition program for us. A nice free program just to keep us motivated for the new year. Because it's about being healthy, wealthy and wise. 2016 is going to be awesome and we're really excited about the things we've got planned.

Yep, gonna be a big year.

It is, it is, isn't it? We're just. God, every time I speak to John there's something new that we've, we've got to tell each other about that we're planning to do and to add more to, to your experience and get you to your, your property success sooner. One of the, you know, conversations we've had recently is about the fact that, well, if the market is on the downturn, what's going on and have a look at my newsletter tomorrow. But I think if you got two options, you can hang out hearth and home where a lot of people are going to go and sit out and tail between the legs for a while and wait and see and wait and see. And I think there's going to be some really clever investors out there that say thank God the heat is out of the market. Yeah, we've got two years now to buy.

Yeah.

And get in. So there'll be none of that frenzy auction activity and you'll have time to do your research and not jump in. And I think there's some real, real good opportunity ahead. But yeah, guys, more of that 2016. We really appreciate your ongoing support and your interaction, your questions and the quality of questions that you ask. And we look forward to talking to you on the last Thursday of the month in January. So just after the Tuesday, Australia Day holiday that we have. So I guess that makes it the 28th. And I really hope that you and your families have a happy Christmas. I hope that Santa does come to everyone. And if not, the tooth fairy. So, all the best. And. Yeah. Merry Christmas.

Merry Christmas. See ya.