Your Property Success Mentor Call December 15-12-2016

Hello, everyone. Welcome. And just before we start, I have to do the mandatory disclaimer. So it's important for you to understand that you need to take care in applying what you will hear on tonight's call to your own personal circumstances. Everyone's situation is different and all the information in today's call is based on our personal experiences and opinions and is not intended to be specific to your circumstances. We're not real estate agents, financial planners, lawyers or accountants and are not liable for any loss, damage or misunderstanding caused by reliance on any of the information provided or inferred. Now, we regularly record these mentor calls and reserve the right to share the content down the track. So by participating in this call, you're acknowledging this, and if for some reason you prefer not to be included on the recording, we just ask that you contact our office on 1300 or 963646 within 24 hours and I will edit you out of the recording. And that's about it. With that out of the way, I'll hand over to Jane Slack Smith.

Hello, everyone, and welcome to the final call for 2016. Wow. Hasn't the year gone fast? And I hope for many of you listening, it's been a fruitful year. I hope it's been a year that gets you one step closer to your goals and it's a good time of year to reassess your progress, maybe reassess your goals, maybe they've actually changed. Because what's important is to have that clarity about what you're aiming for. So we look forward to hearing from you tonight about your year and your plans for next year as well. And as always, we have lots of exciting things to share, don't we, John?

Yes.

So settle in, make yourself comfortable and get ready for a chat. Now we're comfortable. We've actually pulled a beer, haven't we? We had to have a Christmas beer. I think we had a bit of webcam viewing earlier. We got sprung, but we thought we'd celebrate with you with Christmas cheer.

Shall we Cheers?

No, we can. Cheers. Let's go.

Cheers.

Oh, my goodness. We're going to Cheers online even.

There we go.

Hello.

It's going to come up.

Cheers, everyone. Merry Christmas. So we'll. We'll get going with the call tonight. I hope you're ready for a bit of a chat, because we are. Now. These calls are exclusively for my mentoring students, the students of the Ultimate Guide to Renovation and my Investors Choice Mortgages Diamond Clients. And if this is the first time on the call, a very warm welcome to you and please don't be shy. Just say hello. These calls generally take place on the last Thursday of the month, unless it's the week of Christmas. So you have got lots to look forward to this year and well for next year but. And for tonight. And of course you will receive email reminders coming up and each month as they approaching so you won't miss out. Now for some reason, if you can't make the call, you can always use the message line. Now that is 130076 triple 1 9. John, was there any calls on the message line?

I checked it this afternoon. Guess what was there?

Nothing.

Absolutely nothing.

It's like, you know that sound.

Tumbleweed. That's right. Crickets. Tumbleweed. That was about it.

Well, it is there. Just in case. Anyone. Look, I'm going to issue a challenge. Anyone who actually leaves me a question on this. The first five people for next month, I'm going to give them a book.

Oh yeah.

I'm going to autograph it and give it to them just to see that if maybe the line doesn't work.

Maybe it doesn't.

Yeah.

Who knew?

1376, triple 1 9. Have a question. Ask me now. As always, I've probably, you know, ruined the surprise. The co creator of the ultimate guide to Renovation sitting here next to me enjoying a. What is it? Grosch.

Only one, by the way.

John Hubbard. Hello, John.

Hey. Hey, guy.

I'm good, I'm good. December.

Yeah, I can tell.

2016, gone.

That's why we've got the fan on. It's warm in here, isn't it?

I know. Very. In contrast to where I was two days ago.

How fast did the year go? Eh?

I know it's. I think it's. It's one of those things where you. You kind of put your head down and you work really hard and then you look up and you're like, how can there be Christmas decorations in Woolworths?

Yeah.

And then the next thing you know you've got Christmas parties and plans and you realize you forgot to buy presents. So. Yeah.

Do you shop on Christmas Eve like I do?

No, but I have to say that I usually collect things through the year as I see them for people. And I have a present drawer and I've got into it tonight.

You probably pay attention to the little hints throughout the year.

I do. And this is the worst thing that's happened. I have picked the great presents for my New Zealand family that I'm heading over to see next week and. And they've just applied this $15 limit which now I'm going to have to.

Families applied it family wise present. Oh, okay.

And so I have gone over that a little like, you know, don't embarrass the other people by spending more. So I'm going to have to pretend that I was like super, super and I haven't spent a lot over that. But I have to believe that I've. Yeah. What makes it creative? Oh yeah, yeah. So I think putting a bit of a limit on it really makes you think and think about it. So. Mind you, one of the cousins a few years ago decided that he'd just go to the local video store and buy all the old video cassettes and give everyone one. So I think I've got Back to the Future four or three or something on Beta Video. So yeah, creative but not always as thoughtful. So. But anyhow, what have you been up to?

Well, as you know we've had the. Well the last call actually. We're about to go to sail with the townhouse. I think it was like a couple of days, two days before auction. So that sold thankfully.

Great.

And so that was all good.

It was a bit nerve wracking actually too because you weren't there, were you?

No, it was a remote auction for me. So I was. I had my partner Eileen with the iPhone with ichat going. So I was watching the. Through the video. But we were in Brisbane for the, for the hot spotting workshop.

I know.

So I popped out on the balcony.

And watched the mapping.

Yeah, that's right.

Jump. Popped out and gone into the negotiations.

Yep. And then came back with a big smile on my face and we had champagne for lunch. Yeah, that was it.

Everyone enjoys the workshop, don't they?

Yeah. So it was really good. So we got above reserve and. Yep, a lot of. So we've only got one to go now of the three that we undertook. And so the other side of the Canterbury one, which is the one. So the one with the basement and the lift sold which showed the pictures on a couple of these mental calls. And the neighbor of that on the right hand side is selling now. So it'll probably get you know, a couple hundred or 100 or 150 less than the other one. Yeah. So we all. The idea was to auction the best one first because it had all the, the bling, the lift and everything in the basement. And that kind of sense, the bits sets the benchmark for the. For the other one.

Fabulous.

Yeah.

So next we'll just fingers cross, Christmas present from the other one to be.

Yeah, I mean that'd be perfect. If we get the other one away before Christmas that'd be great because it'd be all over.

Absolutely. Well that kept you busy. And what about Christmas?

Oh, not much. Not much. Couple of one week away down at point Port Albert, which is down past Port Point. Welsh wall. Port Welsh wall. I always get the two confused. Kind of past Phillip Island.

Okay.

Down.

Oh good. I know. Phillips Island. Cool. Give me a reference point that I can relate to. Yeah.

Past the penguins. Yep. And that's about it for me. Yeah, just a week down there to chill out and maybe do a bit of fishing and. And then probably do a bit of planning for the new year too. Just get all those ducks in a row so we can hit the ground running in 2017. What about you?

Well, I've just done a crazy four or five day trip to New Zealand for my sister in law's graduation.

Yeah.

So we flew into. Actually I've got some photos. Flew into Queenstown and enjoyed some luging, looging being the technical term of some kind of luge thing.

That's not Queenstown there though, is it?

Well that's Glenorchy. That's the road from Queenstown to Glenorchy where most a lot of the Lord of the Rings was filmed. So that was a, a great little spot. So Glenorchy and then the road to Glenorchy was full of lupin. So I think I've got a photo of the lupins on the river. River Lake. Interesting lake. Interesting Baramon barometric phenomenon that every 30 minutes there's actually a tidal wave that goes from the the bottom to the 80 kilometers at the top. So yeah, interesting kind of you get these tides in the, in the lake, you know where that come from. So very pretty. Had a great time. Queenstown Tidal lake. Yeah. Went to the luge, went to the gondola, then went to ah, down I've. I went. Yeah. Next photo. Oh, there you go. Hello.

So that's Queenstown, right?

Queenstown, the background. Yep. Very steep gondola. And then we went to Dunedin and went across the Otago to did some gold panning on the way. Had a bit of fun and we went to the steepest street in the world, which is Baldwin Street. Very, very tough climb let me tell you. Climbed to the top and then I met a man at the top and he was very nice. Took a photo for us at the top.

Yep.

And Max and Todd and I.

And they're so extreme Kiwis aren't they? They even have Steep streets.

Well, this is how extreme old Dave was. He said, google my name. So I was like, okay, Google Dave and Baldwin Street. And up came the man who walks Baldwin Street 30 times a day. I was like, dave, why do you do this? And he said, oh. The second time I was made retrenched as a slaughterman. I got depressed and I ate all this food. And then I thought, I better do something. And I thought, I'm going to walk up the street. He said, I only live in the next street. So I walk up 30 times a day. And his knees had gone on him. And he stopped us once. He's about 65. And yeah, nice guy. Had a chat and then we went to. Oh, we went on. I always wanted to go on the Shotover boat tour. So this is the road down there. And I saw, you know, he shot over the jet tour in Queenstown. When I'd been around there many years ago, I was like insanely expensive. I thought, one day, one day I'll come back 20 years later I got back there and I can afford it and, you know, save the coins. And so we decided not to do shotover. We did the Skippers Canyon, which meant that we also got to go on one of the second most dangerous road in the world, which in actual fact, we went through the Gates of Mordor, which was very exciting on either side. And this is the road is like. And in actual fact, the insurance companies will not cover you if you go onto the road.

Wow.

And so it's. I don't know how, how long it is. It's probably 20ks there you go, 15ks an hour. But of that 20ks, it's all single.

Is it the most dangerous?

Second most second.

Where's the most dangerous?

I have no idea. But I've got to say it's probably.

One of those, you know, crossing from Pakistan.

Completely different reasons. But there's a. She dropped for about 18 kilometers of that 20 kilometers. And if you meet a car coming the other direction, you have to reverse for 2-5km before there's a tiny little section that you could probably pass each other on. So it is insane. So I was glad that I wasn't driving it. And I said to the Pete, the bus driver, so how long have you been doing this? He said, oh, today's my first day as most bus driver humor.

Yeah, yeah.

I was like, yeah, good on you, Pete. And so pilot joke.

Yeah.

So anyhow, but it was great. And we did some gold panning and the, the actual Shotover, it was Just incredible. The shot of a river and on that boat and I just.

It's a good fun. I think it's the shot over that you raft down as well, isn't it?

Yeah, yeah. Actually, I took a photo for you because I know you're a keen mountain biker. And right down the bottom of the gully is the roadway that the four and a half thousand miners took to get to this point in the river where they found all this gold. So insanely insane kind of gold trivia. Things like, you know, nine and nine and a half ton came out in something like seven months with 5,000 men in Gulliver's. I think it's gully. And to give you an idea, nine and a half ton is just an incredible amount of gold. And where these guys were, which is quite profitable, I think they took 4 ton out in the next 20 years. So.

Wow.

Incredible.

It's a cool country. South island in particular, I really like.

Well, now I'm heading back next week for Christmas, so, you know, I should have probably just stayed there, but I'm worried that they might call me a Kiwi if I do and I don't want that mistake. And December, we had some sad news. Two weeks ago I had a call from Kiw Kieran Claire, who was the editor of Australian Property Investor magazine. Actually, good news on Monday, rang me up and said, we need a photo shoot of you on the COVID for January. And then two days later he rang up and I said, hey, I've had a thought about that photo shoot to make it a bit more fun. And he said, Jane, don't be optimistic. I spoke to the publisher last night and she's all over. So even with 130,000, API magazine is no more. Yeah, 130,000 viewers readers a month. Subscribers. It advertising rules the wave. Same day, the Dolly magazine bit the dust as well. So I hope someone can retrieve API magazine because I think there's a lot of value in there. And I've definitely got over. I think we're up to issue 104 or something. So. Yeah, bit sad. And of course, December we did a workshop in Brisbane and another in Melbourne.

Yeah, yep. And we had two meetups as well on the. On the Friday night before both.

Yeah, we ran our first meetup. So often we get people say, well, we gave them a little bit of webcam tonight, but, you know, we never see your faces. Do you really exist? So we did a call to Arvin and said, hey, we're going to be in town. Do you want to Come out for a drink on the Friday night and we'll expose the dot maps from the previous workshops to you. And they had a lovely turnout. Really nice. Sitting down, having a chat.

That was awesome. That was really good.

So both of them. We do exist and it was nice. You know what I loved about that first one in Brisbane? There was a young couple there and the guy came up and said, I've watched all the free webinars and information and bought your book. And he said, I've just bought two properties in Sydney and made money out of renovating them from doing nothing than this. He said, so I know that I need to have a bit more to get further ahead, but yeah, it was lovely to hear people's success stories.

There was a. Yeah, there was a couple of stories there where people had done renovations. I'm probably confusing a few of the stories with the workshop too, but. Which we heard nothing about, but they've gone and done two renovations since. Gee, I wish they'd tell us.

I know. Well, that's it. That's going to be my catch cry for 2017. Tell us.

Yeah, tell us.

In actual fact, you know what I reckon we should do tonight is actually expose the Renovator Network Facebook page and see what people are doing.

I'll come across to you. Right, hang on. There we go.

Okay, what have I got here? So gotta get on Facebook now. You're gonna see all these notifications where I haven't actually responded to as yet. Okay, so the Renovator Network, which is that private Facebook group for the renovators, as we can see, we've got people in module 6 now, the offers and negotiation and auctions module in ultimate guided renovation. How funny is the crazy lady technique? Like every time I think of this, it just cracks me up. Anyone listening? I can see we've got a lot of people there, but anyone particularly like the crazy lady technique? I think that is an auction technique is.

And it's widely assumed that the crazy lady is you.

Oh, really? Yeah, I'm happy to take. Hey, whatever.

Which I do nothing to correct.

Thanks. Thanks. Yeah, according to my son this morning, I'm definitely a crazy, crazy lady, so. Well, let's have a look. Eva here is sharing some of her before and after. So she has just completed a quick three week renovation and I think she's just done a fabulous job. So you know, there's the bathroom in in particular had a lot of work done on it. You can see here the before and after.

Yeah, that's great.

Significant. It took A took a pick out of your baths.

Yeah.

Beautiful bath.

It looks like a stone, but it might be an acrylic, but it looks like a stone.

It's pretty impressive, isn't it?

Doesn't say, but looks. Looks great. Nice big. What are they? Probably 600 by 600 tires.

Yeah, they look like 600 by 600, which I was always surprised the very first time I used those to make my kitchen look bigger, the Tyler tried to charge me more and I took a front to that. So I got a quote from another couple of tilers and they did the same. It says that it does the back. So.

Yeah, yeah. Typically you get Tylers that just work with these, particularly with porcelain. But yeah, it does, doesn't it? So you can't beat those baths.

Kudos to you. And oh, here we go. Kitchen looks a bit better too.

Gee, that's awfully like the one from the case studies, isn't it?

It must be like a traditional kitchen look or something. So 70s excellent. So, yeah. So is there another one? Is there enough bench top could have been replaced instead of painted at just a touch more expensive lesson. So the painted.

Painted but not the timber.

I've got it.

Yep.

Yeah.

And the doors haven't been painted.

Yeah. So the tile's been painted. Yep. So just the splashback change. So. And yeah, so congratulations to you. And let's see, we're going to expose some more people because we've got lots of people who are sharing their. Oh, kind of funny. I'm clicking on the screen rather than my screen and got a few questions here. Lots of people jumping in aluminium frames. Jenna, now, Jenna actually attended our. And her husband David attended our Brisbane. You know what was insane about that? We're sitting there at the Brisbane hotspotting workshop and everyone was going around the room introducing themselves and remember. Oh, yeah, who was it? Simon and Jared were like, oh, we came to your Sydney community college course back in 2020and12. So I was like, four years ago. Wow, you've been hanging around for four years. And then the next lady said, well, I saw you speak at Property Women in 2007. And we're like, oh, my gosh, that's like nine years. And then Dave said, you came and spoke at University of New South Wales my final year and said basically, you know, don't throw your money away. Think about investing. And we're ready to invest. So here we are. So, you know, it's like 10 years of following the mantra, so to know that you can actually he Won't talk to people for a long period of time. It's fabulous. Here we are actually at the Melbourne dot mapping exercise. You can see we had two teams going on. They were competing against each other. Lots of fun. And we went through and did the analysis on the dot maps and here's Eva again and this is a really interesting program. Progress of a flip. So we had a chat to. I know it's not Chris because Chris is the husband. We had a chat last time about a couple of properties on the last mentor call. But this was really interesting. And we have a look here at the numbers. You know, this is a purchase of 152,000, a Renault of 20,000 and air conditioning of 4 and then offers over 250. So, you know, fabulous kind of numbers to get that flipping strategy. And an update on from that last call. They did miss out on the auction. So still looking and interesting conversation here about Gabriel. He's been with us for many a year. He talked about the digital photography that's been offered to Stage Properties and quite a few people have used it. And I know that Viv from our Renault Save partner offers that service and they've had some really great results. So it's an interesting tactic. And not, not, not really, as you know, there's a concern that, hey, if it looks great in the pictures and then all of a sudden they turn up and the place is empty is a big deal and apparently not so much.

So I would definitely think for renters that wouldn't be such a big deal and I guess to, you know, lower in the market for sale probably wouldn't be. Maybe it would be higher in the market.

Yeah. Yeah. Well, I know how, how good yours looked when we went and had a chat.

Yeah. Oh, and I just know handing over properties to owners, how disappointed they are.

And Lorraine's onto her next renovation. So super. Lorraine there, a long term community member and I did see someone else who was. Where is, look, is Lorraine working away there? Oh, there was someone else that I saw here.

Eva.

Steve will still go in there and you know, expose everyone's here. Oh, Pam's still doing lots of renovations, which is fabulous. Here's a before and after that Pam's done. So this is obviously the before. My grandparents, I think had that same tile in it. They not only wanted to do, oh look, they've got a feature tile as well at the top.

Oh yeah, the daffodils and a calendar.

That matches, but they also have the texture going on.

Yeah.

And I know that shower Screen So. Well, I know when we're renting in. In New South Wales uni. When I was at uni, my parents to come and stay and sometimes my dad, he just could not get. It was such a small gap. It wasn't the three thing. It was only twos. It was just like, how do you get into the shower? And look at that.

There you go. Yep. Big shower from the ceiling.

And this nice little feature tile here.

Yep. And use the floor up the end wall, which is what I always do. Elongates the view. Yep.

So fabulous work here. So you can see here, Pam's taken. Done another incredible job. So another renovation. Congratulations. So, yeah, we're seeing a lot of people doing a lot of really great stuff. So good job, guys. Yeah. Show and tell. So keep it coming and tell us what you've been doing. We don't keep it a secret. We. We really want to others to be inspired by your success because not a lot of. Not a lot of people are successful at what they do. And we can count our very clever students into it. And talking about successful, I tell you what I was having a look at the latest edition of your investment property magazine came out this week. Yep.

Which is our new favorite magazine.

Yep. And API came out too, which is really sad. The January edition. And actually I've got a. I do a bit of a spiel in there about what's going on for the year and where to look and how to invest, et cetera. My last article for API, but the Yip magazine, which I'm looking at here and you can't see, actually goes through the hundred top suburbs to invest in for 2017. And I was looking through this guy.

Taken from a panel of experts.

Well, I'll tell you how big a panel of experts this was. There was 1, 2, 3, 4, 5, 6. Seven of the greatest property minds in Australia got together and pulled out the top hundred suburbs. And can I just say, I thought I would compare this to the suburbs that we pulled from the workshops in Sydney, Melbourne and Brisbane over the last year. So I think we did three in Melbourne, two in Brisbane and two in Sydney in the end. And guess what? We picked them all of which so well, of our. All of our property, all our suburbs that we looked at, a lot of them appeared on the list. But what gave me even more satisfaction is of the ones that didn't appear in the list, that we use the same fundamentals and process of the dot maps, the prediction reports, the hotspotting report, all the reports that we Use to get down to our final, I guess our suburbs and then we put them into our suburb selector software and we do all the analysis when we get into that and then out they pop at the end. The suburbs that you know, we could, we pulled out in a day with you know, 10 mines around the table and us taking people through the process. A lot of them appeared on the list and a lot didn't. So using the same methodology we are probably at least six months ahead of the others. So glad to hear that we are setting the pace and well I know.

All the ones in the top of their list were on ours anyway and.

We actually stopped ours at well the median price for the capital city. So a million for Sydney for instance where we've got you know, Kingsford here at 2 million, we've got Ramwick at 2 and a half, etc. So a lot of those top hundred suburbs are not suburbs that people would actually be able to pull out this change and buy. Hello, wouldn't that be nice? So yeah, so it's pretty interesting and bit of validation. Yeah, it's nice. It's nice to know that we're actually setting the pace by giving people suburbs before the property experts call them six months later and we probably got. They've got another six months worth of growth up their sleeve with the other suburbs we selected. So go you guys who attended those suburbs hotspots.

Yeah. And there's been some purchases from those as well which is good to see.

So some of them are in a couple of weeks got down to purchasing so. And I think I know there's been a lot of interest. I haven't run this past you John, but I think I've kind of promised that we might be doing a few more workshops in February.

Okay. I thought you were going to tell me we're going to Perth.

Well, this is it. I told the guys if they get, get 10 people together we will turn up. And Newcastle, there's a big campaign at the moment going on Newcastle as well.

So I'm working on that behind the scenes just quietly.

Are you? Yep.

For the, for the suburb selector.

Ah, so to add them into the suburbs like. Yeah, yeah. Okay.

The problems, the problem's been with just a small set of the data from Ripe House but we're seeing if we can overcome it.

Fabulous. And for those of you who have got access to the ultimate guide suburb selector software will be updated next week. Yep, that's right for the month. So really good exciting information and I know that when I'm Doing my deal reviews for clients and the investors choice mortgage clients when they find a property and they want a second set of eyes to look over. I'm actually more and more often pulling up the suburbs like the software just to get a really quick analysis of what's happening. So yeah, as you know, trying to make it easy for you and fabulous.

And it's good when you get down to those last couple of suburbs too. Just be to be able to compare them apples for apples against alongside each other.

Yeah.

That's what I really like about it.

Well, I had a client in Sydney doing who sent me his five suburbs and said, you know, I want his second set of eyes on before I drill down. And I just quickly pulled up the suburbs software and just went, dung, he's your suburb. He's looking to buy in Brisbane less than 600,000 and it's like great, I'll be off to there next week. So. Yeah. Hello. So loving it, loving it, loving it, loving it. So hopefully you guys are loving it as much as we are.

Yeah.

Because we created it for you.

Module two and three. Yeah.

And module nine they hit tonight in.

Which is the first I should mention there. The crazy lady is Medine Simmons, who's our next guest on the podcast.

Aha. So that. Oh, module seven we're up to which is our cosmetic renovations.

Oh, okay.

So we hitting renovations. We've got everyone through locating the property. We've got the pockets of potential. We've got down to the property. We've inspected the property. We've now negotiated using possibly not the crazy lady technique. Do you want to explain that Just for those who don't remember it.

Yeah. So the, the, the kind of principle of it is that you try not to let the auctioneer control the pace of the auction. So it's the, the idea is in that if someone is going to outbid you and they've got a, you know, pocket full of cash, they'll out. The chances are they'll outbid you. But the idea is to try and knock out the people who have gone over their budget but are kind of hanging in there because they're running on emotion and adrenaline and all that kind of thing. And, and they've turned into a competition. So what the crazy lady does that really quickly.

They've turned into competition. But people do that. Yeah. It's really, it's the emotional. Oh, geez, it's only an extra 25,000 the million that became before. That's the problem.

Yeah. I've had friends say to Me? Yeah, we paid a little bit much. I got a little bit carried away at auction.

And, you know, what about. Oh, gosh, what was the name of the gentleman who turned up at the meetup in Melbourne?

Yes.

Oh, wish I was such a great guy. Anyhow, he turns up and he goes, oh, I've got one investment property, but I bought it by mistake. I'm like, how do you do that? And he said, well, I felt I was driving past West Footscray and there was a unit auction going on, and I could see the auctioneer. I was just, like, kind of driving slowly. I was having a bit of trouble and no one was bidding, so I thought I'd help him out. And I bid. I'm like, get out of town. He said, yeah. And then I had to ring mum and say, bring your credit cards down. I think I bought a house. What? Great area. But hey, yeah, not the way. Not the way to do that was.

The old da, da, da strategy. Yeah. So did well in the end, though.

Yeah. Turned out okay.

So young guy, he's got two now, so he's doing well.

Yeah.

This is all the webinars and the podcasts and. Yep, good. So, crazy lady, the idea is that you. You're not wanting the auctioneer to control the pace of the auction. So the crazy lady is kind of in a frilly dress with, you know, flowers coming out of her hats and bouncing around, and she. And someone will bid, and then she'll just put in. So she'll have a. A reserve that she wants to go up to, but on the way up to that reserve, she'll do it in a really erratic way. So someone will put a bid in, and then she'll put, you know, $20,000 above their bid. And then before anyone else gets the chance to bid, she bids again and puts another 20,000 on top of her own bid and just completely disrupts the auction. So even the people around her are starting to tell her, you know, you don't have to bid again. You know, wait until someone else bids.

Yeah, stop now.

But, yeah, the idea is to completely freak people out.

I think she's so crazy. She said they just keep bidding. Yes, I'm down to my last 10,000. I've got no chance because she does. No idea. She could go by 50.

Yeah, this lady's gonna kill this.

So, yeah, as a seller, that's the perfect kind of person that you want. Yeah, a real crazy lady.

But, oh, there's all sorts of strategy. We had one in our second, not the previous One that I was just talking about with the auction before that where we had same group and the, the youngins were bidding on the far side of the road and the oldies were bidding on this side of the road and they were bidding against each other trying to control the pace of the auction. And they started the auction same, same strategy just to keep it dull the pace and try and get it down to small increments as fast as possible, which is what we always do. The fastest you can get it to one, the better, you know, because it just exhausts that. Yeah. That frenzy and also just that dominion diminishing concessions that you talk about negotiation. So you, you, you start with say a, a $10, say you're negotiating with someone. I come back and you, you say I'll sell it to you at 500, 000. I say 450 and then I'll say oh, 460, 465, 462, 461. And it has the appearance that I'm coming to my limit where in reality it's could be, you know, it's completely arbitrary. My limit could, could be whatever. 500.

Yep.

So same thing.

Yeah. Well, so you guys, hopefully you enjoyed that. And what we have is the next one we get right into the renovation. So midnight tonight. Congratulations, we are on it. So ta da. Very exciting. So before we go into your questions, let me just do some quick housekeeping. When you do 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 and hard to see, so click the hand button. That will notify me that you have a question. And when it's your turn, I will unmute your line. And when I do unmute your line to take a question, you will get an automated message says your lines are muted and that way you know I'm talking to you. So you can ask any questions. We prefer it to be by voice so I can really get to the bottom of it. We can have a bit of discussion. I think it makes a little bit more interesting too. But please, if you can't, you don't have a microphone, write your question down. I do answer the people who put their hands up with the microphones first though. And if you have a follow up question, just limit yourself to a quick one. And then if there's time at the end, we try to wrap up at 9:30. We never have, but hey, it's Christmas, you never know. People may have no questions, but we try to leave no question unturned. And make sure. I really want you to know this is, you know, especially those that have just joined. This is a forum where you can have a chat to us and, you know, ask us any questions. There really is no silly question. I think over the last four years we've probably answered lots, lots and lots of questions that to many of you might seem silly, but the reality is there's so many people out there thinking the same thing. So it's going to be fun. It's going to be.

Sometimes it's just those little things, isn't it, that gets you over the hump.

Yeah. And, you know, more and more I talk to people, especially at the location masterclasses and at the meetups, and sometimes it's they. They share with me. You know, there was. I just couldn't get my mind around something and then you said, and it all made sense. And you don't know what that is for everyone.

And it's because it's different from different people.

Yeah. So, yeah, as I said, we haven't missed a question yet. So put your hand up and we'll get to you. Now, finally, this is not a tech support call. We do have tech support people who can help your issues. So if you're having problems with videos or you can't download something, or if you got your Forgot your password, us email supportourpropertiesuccess.com and we will get on to fixing your problem as soon as possible. So, questions?

Carol has her hand up, waiting patiently.

I think she's even written things in as well.

Carol, are you there?

Hey, Carol, can you hear me? Yes, we got you. How are you? Oh, good. And what about you? Yes, great, thank you. And I'm really enjoying the course. It's great. I've learned so much. Fabulous. And tell me, have you done your Christmas shopping? No. Good, good. But I don't have a lot to get. Oh, lucky. I'll be one of those people that's. Yeah, I'll be one of those people that's shopping at Mid Till, you know, after midnight. Well, don't push John out of the.

Way when you see me down there.

Yeah, it's okay. So, Carol, how are you going in the course? What module are you up to? I'm caught up with everything. I'm just waiting for the next one, but I haven't actually done anything yet. I'm just going through it and then I'm starting again from scratch in the new year. Perfect. Because that's when I'll actually Be doing.

Everything, ready to go, just in time learning.

Absolutely. That's. Well, you're a big advocate for that, aren't you, John?

Yep.

Just in time learning. Good. And so what's your question? How can I help? Okay, so what my situation is, I've actually got some money from a settlement and so I am actually renting at the moment. So my first property, I'm hoping to buy and renovate and then get some equity. But my question is, is it better to then rent the first property out and then move into another property or is it better to just live in the first property and then get a investment property? Okay, tough question because there's benefits for both ways. I guess the most substantial benefit that most people have about renovating their own home, especially if they have a view to sell it, is that there's no capital gains tax. So. So if you're, if your thoughts are actually to buy, renovate and either live in it, buy renovate and hold rent out, then that whole capital gains tax issue doesn't really come into play.

So the many renovators made their money that way.

Yeah, exactly. Many renovator has made their money by doing that with their own home. And however, there is, I guess, a caveat on it and that is that although the Australian tax office doesn't specifically say when you do this three times, we know that this is what you're in the business of doing this and we're going to start calling you out on it. You won't be getting it, but there is a cutoff point. So most savvy property investing accountants will warn you to that if that's what you're considering. Having said that, the other thing that you probably want to check with your accountant is there's that six year rule where you can actually claim a property as your principal place of residence for a six year period. And even if you're not living there and you haven't claimed a subsequent property, like you might rent somewhere else, you could claim, you could move out in theory and sell that property and claim it as capital gains tax. However, if you do, and I'm not an accountant, so you do need to check this, if you do have another property that you move into and live in and own, there's often a proportional value of how long the first property was your home compared to it being rented out. And you can only claim the capital gains tax benefits for the period that you were there. So the really important thing is if your property, if you do plan to do that, is that you get accurate valuations done when you move in and when you move out. And often you have the valuation because at the time of contract the banks do the valuation. But when you move out, you should have have another valuation done. So you have at that point where you know it's become an investment property. So there's not difficulty in the future in achieving that. But I guess the question that you have is because you want to retain the properties, is there any benefit in living in it and then moving on to the next property, or is there a benefit in selling, in staying in it and then just having an investment property for the next one? So it's a two prong answer here. The first is from a renovation point of view, if your strategy is to buy, renovate and hold. My husband and I, we did this for 10 years, you know, rented, rented. We were rent vestors. So we bought properties and renovated them and then rented them out and then we rented ourselves. But during the period of renovation, we often lived in the property to save money on the rent that we were paying. And we could work around the clock that way, do our 9 to 5 job and work around the clock as well and renovate it. So there's a benefit if you're living in a property that you're not paying rent elsewhere and you can concentrate on it. The, the problem that we find, or I find often when I speak to people about, we moved into our house to renovate it and was going to take six months, but you know how life catches up on you and then it's Christmas and then they never move out and they never do the renovation they plan to do in three months. So Todd and I have.

Which is always a bloke's fault.

So glad that you recognize. But Todd and I had a unit on Bondi beach and we knew that the best time to rent it was during summer. So. And you know, because it looks fabulous in winter, you know, it's just a. Another dark unit. But in summer you're looking out at this beach view and you're like, this is what I want to wake up to every day. So we moved in over the winter period and renovated it and then we moved out when it was summer. So from a kind of save your money and set yourself a time frame that can be really beneficial. But the other thing is from a borrowing capacity point of view, when we think of how much you can borrow, often what I find is people, and especially since these APRA and ASIC changes, that it really came in place around June 2015. So we're talking now December 2016. So it's been 18 months that these changes have filtered through and they really hit us hard initially, but they continue to do so. Two weeks ago, NAB changed their borrowing capacity calculators. They were taking existing debts and then buffering them a bit to make them a bit higher. Now they've gone the way of nearly every other bank, which is they're assessing existing debts at 7.25%, 25 years principal and interest. So to give you some context on that, a million dollar loan at 5% is going to generate. Well, let me just do this calculation. Million dollars would be $50,000 and interest. Da da da da, 5% of a million. Gee, okay, no more beer for me. And then. But so when we were filling in your borrowing capacity calculator, we used to put in 50,000 as your existing liabilities of your repayments. But now what happens is they put them at 7.25% principal and interest over 25 years. So rather than putting 50,000 in, we're putting 85,000 in. So your borrowing capacity has gone down so much now. So from that point of view, if you wanted to maximize your borrowing capacity and think about buying your next property, then buying it as a home, then they're going to take 80% of the rent in the property that you're in. So your existing property, so they only take 80% of the rent, but buying it as an investment and it depends on the price point. So if you're looking at buying a $600,000 property and the current property you are in is a $400,000 property, then the rent on the $700,000 property, 80% of that should be higher than 80% of the rent on the $400,000 property. So in 30, in theory your borrowing capacity is higher if the property you're going to buy is an investment property and the negative gearing benefit of the $700,000 property would be higher. So although I may have confused everyone, all that really means is it comes down to the circumstances at the time of what you can borrow. So it's with your mortgage broker, have a chat and I know I spoke to a discovery call with a gentleman today in Darwin and we had the exact same conversation. Said I want to move back to Sydney and I want to buy a new home. And I said, let me run the numbers just to see what your maximum borrowing capacity is. And as an investment property, he could borrow 380,000, but as a home it was something like 250 wow. There was a lot difference there just because of that price point. So just be mindful of the fact that you might get your broker to run a couple of scenarios for you rather than just making the call because you know that could give you some more flexibility. Thank you. That's great. Yeah, good. Well, good luck and make sure you let us know what's going on. I will, thank you. Okay, Carol, have a great holiday. Bye. Bye. Thank you. You too. Bye.

Okay, got a written question here, Jane. Okay, let me pull this over here where I can see it. I've watched module one and two of your property Success Club. Now I know how to get the data, but I don't know what to do with it or what it actually means. You mentioned you put it in the spreadsheet. What do you do with the information once you get it in the spreadsheet? How do you analyze it? How can I use this information to find us? That suits our strategy. I guess we essentially are flipping. Given that we want to get this done in the shortest possible time frame. Should we be looking for scarcity or capital growth? What will I be looking for in the data to help us find the right location?

I think there's like 17 questions all wrapped up in there. Is there?

Basically what do you do with the data?

Okay, so can I just do a live analysis?

Sure.

How could, how could that help?

Yeah, I'll bring it across because this.

Might give a little. So just for people listening, the your property Success Club is a 12 month program. We they get one module a month and we start with the dot map technique and the Jane. Just trying to make my screen. We start with the dot map technique and then we go on to the census. Census information. Ah, there we go. I was wondering where my screen was. And then we go on to the census and then we, we go into more detail. Free websites, auction techniques come in in like month nine and it's really for people who aren't ready to buy but they want to have a good solid base of information when they are. So it's kind of like a starter pack with a lot of good quality information in between. They can go back to time and time again. So for instance, those people who are in the ultimate guide to renovation you will know that in module two we talk about finding the suburb and then the pockets potential within the suburb and then we go into how to inspect the property, et cetera. So we go into a lot of depth very, very quickly.

I guess it's more of the fundamentals of property investing your Property Success Club.

Absolutely. And we wanted to have a club where people could get that kind of fundamental information, you know, help each other when, when it was available. And you know, I see a lot of activity in the. Your Property Success Success Club. Private Facebook page. Success. How can I never say success?

Why did you name the company Success?

I have no idea. Because we do so many recordings and it's probably the biggest word I stumble over all the time. Success. Anyhow, so the, I guess the. So it gives a little background to where this question is coming from. But. So when we did the Ultimate Guide to Renovation, we launched that in 2013, we said to people, hey, there's a spreadsheet and it's like a 30 column spreadsheet and here's 30 websites. You go and gather the information and.

Get it out of the back of magazines. Yeah.

You know, back of magazines and there's some information on SQM research. And then go to census and then go. And we kind of, you know, told people where to go and then we'd have these calls and go, and how are you going? Like the spreadsheet. And so. Oh no. Because we're so committed to helping people get to their success story, we're like, okay, well maybe we could populate it for you. So then we started populating the spreadsheet and then people were saying, well, it'd be really nice if we could put in our criteria, like really? Okay, so where are we going today? So suburb selector software, which is now what you see on the screen is pretty much where it came from. Now let me just. I know there's a lot of people online. I could choose here, any one of these capital cities and whoever yells out fastest is going to get me to the capital city of their choice. Type in your answer in the chat box and I'm going to have a look.

Where do you want to look at, Paul?

Newcastle's not there yet. Okay, come on guys. I can do Sydney. Melbourne, Adelaide, Brisbane.

There we go.

Okay, go Karen. Okay, so let's pull up Sydney. Okay, so I'm going to put a price point. I know that the average price in Sydney is a million fifty. Now you can go below the average price, let's say 50% below. We're quite happy to be able to afford a property at 500,000. And you know, we think our negotiating power is 10% above. Now this gives you some context. So you, this is where you put in your purchase price based on your borrowing capacity your mortgage brokers giving you. And let's just say you know, we want to be 35k in the CBD. So we pull up.

That's Karen's question.

Oh, is it?

There we go. She just told us.

Oh, it's my question. Go, Karen, open a line. Yeah, let's give her the answer. I better take you through, Karen. Congratulations. I like it when people turn up and ask questions. Hey, Karen, can you hear us? I can. Can you hear me? Yeah, yeah. Tell us what numbers you want me to put in here. What purchase price? Oh, oh, well, I had. Our basic price is about 600. Perfect, let's do that. And we know that's a little difficult in Sydney. I would have first put Newcastle, but I know we're working on it.

We might change the kilometers.

Every time someone says to us, you know, we're really keen, we're really keen for you to do something new, we're like, yeah, we'll take that on. How hard could it be to come up with a suburb selector software? There's six months later, like sleepless nights, like, oh, okay, let's go 65 kilometers. That's probably going to get us out to Camden or somewhere. Okay, so.

Well, that's interesting. Yeah.

So what's happened here is what we do is we the old Bradbury, we come up with the suburbs. That and there's Camden. So 51.9 kilometres. And if we want to see, I grew up in Camden, so I have a bit of a soft spot. Camden Gledswood Winery, Ellsley Kindergarten. Out at Cobarty. There's 40 of us in a classroom ranging from kindergarten to sixth class. Very fancy school. And so we can go down here, we can choose some of these. Are there any of these suburbs currently on your watch list? I've had a brief look at Layla Park. Okay, so Lethbridge Park. I've seen Lethbridge Park. I had a look at that. Yep. And I'll tell you some areas that I've come up on my radar recently. I'm just going to plonk some of these down.

What are some of Terry's ones?

You're really gonna push me. The oaks I saw come up in the Yip magazine.

Oh, yeah.

Ah. And I saw this come up as well. Okay, so what we've done is we've selected a number of suburbs that we're interested in. So in the location hotspotting workshop and in the newly to be released location workshop, which is an online version of this, we take you all through this and show you how to do it. So with these suburbs what we've tried to do here is we've tried to create almost a, what would you call it, a digital version of the dot map. So in the dot map what we do is we look at Lalor park and then we look at the surrounding suburbs. So what we've done here is we've actually pulled the surrounding suburbs for you and what you often find is that the suburbs that are closer to the city, so let's just run down here to 27km, it's 700,000. So this is kind of validating that ripple effect. So as you come out from the city or out from the CBD potentially, you know, Parramatta for instance, as areas become unaffordable, the next suburb takes off. So we've highlighted Lalor park here, but you can see Seven Hills is a bit closer and the median price is a bit higher. We come down here to Bella Vista where it's a bit closer and the median price is over double. So we've got a bit of information here. So it starts pulling up some really interesting and then we can actually start going through and going, well, look over the last 10 years we've got 7.4% growth in LEA Lowell park, which is fabulous, and the neighbouring suburbs. And what you often find in the closer, sorry, the suburbs close to the city is a higher growth potential. So we've seen here in the last year, you know, obviously Bella Vista has taken off, Seven Hills has taken off, but Lalo park not so much now. In the dot maps we're always mapping the 10 year growth and we're not really looking for the outliers, the hotspots that no one else has ever picked. We kind of a little bit more conservative here. We want to make sure that the neighbors are. There's been supply and demand in the past. The neighbors wants to live there and in the actual suburb itself. So we've then look at that three year growth though. I know, it's nuts. Sydney, Sydney, three year growth. Actually I was looking at a couple of the properties I have in Sydney last night. Darlington, I think was 48% in the last three years. I sat there for two years going, did I pick the wrong suburb here? I've done all this work. Did I pick it delayed for two years?

You know, it's interesting, even the people when we started this in 2013 were saying, oh, it was different when you bought your property in Kingsford.

Yeah, there's never going to be that growth again. You were lucky. Yeah. Okay, so, and so the other thing here is the Rental yield. So I look here at rental yield. So one of the things that I look at, so I have a number of filters that I use. And without going into a lot of detail, one of the prime filters. Filters is making sure that there's over 30% renters and making sure that we have more than maybe nine sales a month and making sure that the rental yield is acceptable so that I've got over 30% renters. So I'd be taking that through.

And 3.5 would be pretty typical, pretty good for Sydney.

Yeah, 3.5 is actually really good. 2.8, we're looking at in Melbourne now for houses. So, you know, this is working for us. I'm looking here, 32.7% volume of sales. Not enough for me to be wasting my time on, you know, because I don't want to be out there. There's only, you know, six sales a month, for instance, and we know that 70% of owner occupiers and 70% of owner occupiers are buying on a motion. I don't want to be trying to buy that one or two properties a month.

It also skews the growth. Yeah, yeah, look at this.

44% renters, 167 sales. And because I can't see what the suburb is, I'm not getting kind of waylaid by it. I've got here no preconceptions. Yep, 14% renters, you're out 57%. This is good. Only 46% sales. Not interested. So of all of those suburbs that I selected, only two actually got through to the next stage. So, Karen, I guess your question is how do I kind of get all this into the spreadsheet to do the analysis? So I can really quickly, as you've seen, We've taken what, four minutes to get down from maybe 40 suburbs that are within the price range within the area down to this. And, you know, I've started looking at things that, like, I'm looking at the. The yields and I'm looking at the vacancy rates. Now, as with most things, technology, sometimes the information is not always there. So this is always a starting point for where you might want to do more analysis as well.

So went through your top five, though. What do you. I mean, it's past capital growth, it's days of market vacancy, vacancy yield.

Yep. Percentage of renters would have.

Percentage of renters. Yeah.

So if I look here, look at public housing 2.1% and public housing 18%. Yeah. Interesting. The average weekly income tells me this is probably a lower socioeconomic area as well. So I get to have some really interesting comparisons happening really quickly and I also get an idea of potentially. Did I just flick something else open there potentially things like vendor discounting. So you know, I'm looking at, you know, if that's a negative number, it's telling me the properties are selling over the median. So I don't want that to happen. So you know, if you're looking at your price point at the moment, you know these areas, Mount Druid is looking of interest to me definitely. And then we go into and you'll find in your property success club number three module, Karen, you'll get into the websites that let you go into that extra information. So one of the things we do in the workshop here we get, we go through the analysis and let's just say we chose Mount Druitt as the suburb that we were going to take through to our next level.

Now Karen, I hope we mentioned you can get all this information for free in the back of the magazine.

So yeah, just in case you so go. It used to be API magazine, your Investment Property Magazine, domain.com realestate sqm. So this is where you know, this is where you can source that, that information from the. But then we'll get down into the suburb and one of the things that we do here is we, we jump into ripe house or you could jump into microburbs and you can see the streets where the renters want to live. If buy, you know, renovate and hold is your strategy. Or when the owner occupiers leave if buy, renovate and sell is a strategy or just buy sell. So buy right, Buy and hold or buy, renovate and sell. And so it's targeting the streets and then what we do is we jump into API data and we highlight those streets in RP data and pull up from a census information and sqm research what the typical property size is. So 400 to 600 square meters, three bedroom house and out of maybe 14,000 properties in that area comes up with maybe 150 to fit the criteria and they'll tell you which ones are on the market at the moment. So I did a back calculation after location masterclass in Brisbane.

Workshop.

Yep, workshop and I pulled up. What did I do? So I went through and I did. I looked at some of the typical kind of information that I was trying to achieve and I was trying to find out what the sweet spots were and what properties were on the market at the time.

Teasing people with a spreadsheet aren't you, these are the results from all the Photoshop.

Yeah, I know, sorry. But so, yeah, so basically I went through and of the workshop of the suburbs that we looked at and we got down to you know, three or four suburbs that really fit all the criteria. We went through and said how many properties on the market fit the criteria that you could actually walk out today and with some, well, what degree of confidence the more people do. And John and I spent three months really getting to know a suburb and going to open homes and getting this. But you know, if you were, if you were going to, if you had.

A gun to your head.

Yeah. And you're better off than 90% of the investors that we speak to. And you had all this criteria and walked out and said there's five properties on the market that are within 400 and 600 square meters are in these five streets that are, you know, next the train line that are three bedroom houses.

You know, you could do it. You have the odds with you.

Yeah, yeah. So, so I guess what I'm saying is with the, what you've got in the club and the details that you've got in the club, this is the kind of spreadsheet that you would be coming up with. And then once you have that, you have the ability to do the analysis and looking at the comparisons and it comes down to numbers and be very. And I know that in the workshops people get very kind of nervous. When I've got maybe 15 suburbs, I'm like, it's out. It's 28% renters and it's out. That's 96%, 96 sales for the year. And they're like, oh really? Do you want to get rid of it? I'm like, no. We've got three really good suburbs that fit all the criteria. We don't have to worry on the other 12.

So people get hung up about is the age of the data. And for the most part we're looking at a pattern of growth rather than the actual figure. It doesn't, there's things that it does affect. You know, for instance, discounting is something that the more recent you can get the data is important, but for the rest of it it's not as important. Like the stuff in the magazine, just three months old, three months old. But that doesn't really affect us because we're looking at that ten year growth pattern. So it's not as critical as people think.

So does that help you with your question? Sort of. There's so much information. That's what I Found that I got overwhelmed because I went through and I saw you showed us how to find all that free data. So when I go for a spreadsheet, I'll be going the percentage of renters, and I want to know that's over 30% more than a certain number of sales per year and the acceptable yield and things like that. It's just knowing. Once you get that data, what do you look for? What is it that I'm actually looking for? Sure. So is buy and hold your strategy or buy and sell now? We're actually looking to buy, subdivide, renovate, a bit of a double. Okay, good. And then flip it. Yep. Okay. So we have quite a few of our ultimate guided renovation students who do that. And some of them renovate the house at the front and get the extra equity so that they can then spend the money on the DA at the back, and then they sell off the back and keep the front. So that's probably the most. One of the most profitable strategies I've.

Seen used that podcast with Matt Jones. He's got multiple exit strategies.

And so make sure you get onto the youe Property Success podcast and listen to the Matt Jones version because there's. There's a really, really good information there on how you might enact this. But the thing is, if your strategy's a buy and sell strategy, then you're targeting the owner occupiers. So you want to be in the area where the owner occupiers are. So, you know, if we just took this to a whole different level. Let's go into microburbs, for instance, and we put in Mount Druitt. Is that how you spell it?

You're asking me?

Okay, okay. Scissors waiting. So we've got to be happy with that. So.

It looks like we're phenomena.

This is what NBN does to you. Fabulous. Anyhow, so what we're doing is we're trying to locate for you in the suburb where the owner occupiers want to live. And, you know, that's really important because that's what your target market as a resale market is. 70% of people are going to be the owner occupiers. Oh, look at that. Okay, so.

But you're on it there with those five top ones that you were repeating there with the capital growth and the yield.

Oh, great.

Yeah. So you're off to a good start. Now we're just narrowing it further, refining it.

So the reason that we. I mean, you don't have to worry about renters being that 30 to 70% mark, because that's not who you're targeting. You're not as an investor who's want to hold and rent the property out. So for you it's really important that you know, you're looking at for instance, something around where the owner, when the owner occupiers are and that's much more important to you. So you know, for me, when I looking at this type of information, I'm looking at, you know, if I go here to, you can see here the renters here. If I head over here, I can see where the renters are if all they're red and where the owner occupiers, where they're blue. So if I'm looking at this little suburb here, I can see here that only 14% are renters. So therefore the rest are owner occupiers. But over here, 84% of renters. So if you're going to be targeting a specific area now obviously you can watch my census data in module two and kind of come up with that as well. And I'm not too sure how long this data is going to be free for because I've noticed that Luke's made a couple of these tabs in microburb for paid for service. But you know, you can start seeing here, you know, here's, you know, obviously over 75% of these are owner occupiers. So these blue areas are the areas that you're going to look at for where the owner occupiers want to be. Now you might also look at potentially this average income information and what you're looking at. Actually I don't want to do a comparison on other suburbs, but what you're looking at here with the average income information is as you can see here, where the areas are bluer is where the more affluent people are living. So potentially, you know, people want to live where people are like them or you know, they aspire to be like them.

Birds of a feather stick together.

Yeah. So you know, these were the unoccupied areas here. So if I wasn't going to get the RP Data Pro program, I would be highlighting this area and this area here as areas that I would want to be told when I'm going to, when the properties come on the market that I'm interested in, in purchasing. And the most important thing for you, if you're looking at doing that kind of Mount Druot's never had so much activity in your life. Please.

Know how to spell it.

Now I know it's getting better. So I would then come over here to SQM research and just feel for what the, what the average block size is. Let's just have a look here. So this basically comes up with, you know, what the sold properties are and you can go through there and you can say, you know, in the last 12 months or 2015 and have a look because there might have been changes. You know, obviously the prices have gone up over the period of time as well, but the block sizes haven't changed so much. Not a surprise. So you can see here that quite dramatic increase.

So if you were seeing lots of subdivision, for instance, you assume you'd see more smaller blocks.

Yeah, yeah. So you'd start seeing, you know, as a. So here we've got a few blocks that are around that 250mark and you can start seeing square meters. Square meters, sorry. And then we've got some more here. But in the last year or last 12 months we've actually got quite a few more that are between that, you know, what 175 and 300 mark. So if I wasn't seeing that there and I knew that the typical block was 600 and that, you know, from the council says that you can subdivide down to 250 or 300 or whatever it is. If I wasn't seeing that, it really worry me. Subdivision was my strategy because there's no previous indication there's a demand or sales for those smaller size blocks might not be the typical. So you really should concentrate on that as well. So the rental information, not so important. The vacancy rate, not so important. But this would be more important if you're looking to flip because you want to make sure there is a market for what you're after and you'd be definitely targeting those owner occupied areas.

Yep. Okay, great.

Thank you.

Okay, good way to think about it too. If you're selling off as subdividing and selling it off, think of it from the developer's point of view. That would be buying it off you and the kind of due diligence that they would do. So you know, they're going to do exactly the same thing. They're going to try and work out if there's demand there, if there is, who's it from? Where do they want to live? Do they want to live close? To transport all that kind of due diligence that a developer would do, you kind of need to do on behalf of them in advance of picking that block because that's gonna, that's gonna really play A big part in how well you can sell it.

Yes. Yeah, yeah, for sure. So I'm just, just giving you a little demonstration here. You've probably seen the bonus section. If you wanted to, you could subscribe per month for RP Data Professional. But what we do here is we would go through and let's just say I don't even know if I've got a Sydney suburb here that I've done in the past. Well, let's just have a look at. No, West Windham West.

The other thing that we didn't touch on that we should just mention is Suburb View and not Suburb View. Microburbs have the DAs. I don't know if that's still in the part of the free thing, is it? It's behind the bay wall.

I think it's behind the bay.

Wanna.

So if I just. Let's just do this really quickly. Pull Mount Druitt. People are going to tune into this and think that we're making recommendations here. But let's just say that we, we know now that Mount Druot's standard. Now I might have to find Mount Druitt. I bet you. I mean, Queen. No, I'm in Brisbane. Hey, Never know where I am. I know. Let's go across the country now. Help me find Mount Druitt. Parramatta, Quakers Hill. Mount Druitt. There it is. Yay. It's like I've been there before. All right, so let's just say that the information that we picked up here, we're looking at this boundary here as the area that we're really keen to focus on. So let's just say that correlates to here. So what I'm going to do is I'm going to come up with this area here as the territory tool, as my territory. And I'm using the territory tool in RP Data Professional. So I now have that territory. So I'm in this specific area. So of all of Mount Druitt, there's 196 properties in that area. And let's just say that I know that three bedroom houses on. Well, we know we went down to like 200 square meters to 600 square meters was the typical. So we're going to go from 196 properties down to just 20 in that area that are really the sweet spot properties that we're after and we want to target now. We can then go over here and we, we could click all of these if we wanted to and add them to your watch list. So anytime any of these properties Come on the market, you could go and you'll be notified by email if you're obviously still subscribing. And.

Yeah, but that's a good thing if you're in the midst of looking, spending 150 bucks to have that and all of the other. Yeah, it's a good thing to have.

Yeah. And anyhow, so. And unlike some other providers of RP data, we let you turn it on and turn it off by the month. You don't have to keep it for a year. So, you know, if you. We know everyone can't afford to have a year's worth of things sometimes. So with this, you can also then go through and you could just generate your own report on the property if you're interested in it. Or you could be really proactive. We've had a lot of people do this and they actually take the addresses down. They do a door drop on the properties. So there's none of these currently on the market in the area. And we could go over here and we can have a look. But there's two of those properties that are actually currently for rent. So you could jump in here and you can have a look at what the, say, typical property and the typical, well, townhousey property here looks like. And you can get a feel for the history of, you know, what the rents have been in the past, how old the property is. And same here, we can go through here and we can have a look at the information here. Let's see if it needs a bit of renovation or cleanup. So not a lot of work needed on this one, which is good. Nice, clean property. Looks like a typical property for the area. Sale price back in 2015 was 460. As for rent, now we can see what it's sold for in the past. We can see what the rent has been for as well. So, you know, the kind of. Here's a secret source, the secret story. If you found a property that was for rent at the moment and had been owned for a significant period of time, it might just be that the landlord. So this one's only, you know, sold in the last year. It might just be that landlord would be open to an offer. So you could actually contact the agent and say, look, I see that you have this for rent at the moment, but, you know, would you mind passing on my offer to the vendor and see if they're interested in selling? So that's the plan. That's how you can use it. So you have to be with people trying to do that kind of really Clever twist strategy that you're doing. You want to nail the property at the front that can be renovated. You want to have the block size at the back. That allows you, obviously, and this is only 300 square meters, but this is 520, but it allows you to have the roomed under the council, that council's plans to do the. The DA or the split. But, you know, it's really important that you know that beforehand and this gives you an ability to start targeting those areas. Yeah, fantastic.

So you might not need to do the Renault either. You always do that Phiso and do it with Renault and without Renault, because sometimes it's a whole lot cheaper just not to do the Renault. Better value.

So it looks like a lot of shops. Things are happening in the shops here, which we have, and those planning applications, but I think behind the planned wall. Oh, no, it's been released again. So lots of shops going on came up. Planning applications, properties being subdivided.

Yeah. But that's a good indication too, that planning applications, if you're seeing a lot of that in a suburb, you can assume that it's pretty established kind of practice, the, you know, townhouses been on the market.

Yep. So if you're seeing evidence of the subdivisions, you can see that the council could be open to them. Yep, Good.

Typical property.

Well, I hope that helped. Thank you very much. Okay, all the best. Let us know how you go. Thank you.

All right. Okay, I can't see any more. Hands up. Up here, Jay.

I say make it easy for us.

Yeah, I reckon we've still got 15 minutes to go to. I'll change back.

Okay. Well, I can make up a question if you'd like, because I've had a few questions emailed to me this month from People.

Type in a question or put up your hand if you'd like to.

Jane column. So of the API magazine.

Yeah.

API magazine. So let me just see if I can pull up the question.

Come on, Lorraine, I can see you there. We haven't had an update on your.

What's going on? Renault 2. Come on, put your hand up. Let us know. Come on. Okay, so let me. Whilst we coax Lorraine into.

Oh, there she is. Well done. Here you go. I'll buy some time.

Finally, Lorraine, prolific renovator. Have you found the microphone, Lorraine?

Oh, there it is. Yeah.

How you going? We saw the photos of renovation too. Yes. Yeah.

We've just settled today, actually.

Ah, well done, love.

Celebration.

It is.

It was.

It was very good day. Yeah. Decisions are being made having real estate agents come in to give us ideas of, you know, what value, you know, if we should spend the money, you know, what we shouldn't do. You know, one in today was.

It's good.

But. Oh, gosh.

Come in with some really big ideas.

Yeah, well.

And sometimes a bit too over the top, you know, but you know, you just get them and you'll go back today and tomorrow and just sit back and see what we want to do. But you know, we're just going to.

Yeah.

Cost check and you know, stick to the budget we planned on and not go over. And the bathrooms. You know, I'm deciding about a bathroom now and because it's got like this powder room, separate toilet and a shower and bath together. And the layout of it, like as in the shape of it, it's sort of like. It's like a square rectangle but with an added bit where the. Where the shower and the rest of the bath goes sort of. It's a bit funny. And it's like three doors. So we're sort of tossing up whether.

To do three doors, like internal.

Yeah, well, one on the outside and then one to the toilet and then one to the shower and bath.

Okay. And you can't bring the toilet to the corridor outside.

No.

Okay.

Oh, we could, but it's a bit narrow. It's only. I've only got a width of 900. It's not a. No, it's not enough to have it that way.

Yeah.

Not to have a door in the toilet.

Yeah, yeah, yeah. Okay. And so. So the thoughts are.

Well, the real estate we had in today, he said do it open plan, do the shower, but bath, toilet, all in one.

Yep.

I'm not sure about that.

But what are you finding in the area?

Yeah, what's typical?

What's the other properties? Geez.

Well, they're not showing the bathrooms. That's the thing.

Oh, yeah.

In the pictures.

You're gonna have to get us through the open.

Just sort of been.

You gotta hit the streets.

Yeah.

Oh, I know, but it's Christmas.

Nelly, have you done your shopping?

Time's running out.

The agents are happy to see you over.

We're trying to fit tradies in.

Yeah, exactly. It's difficult.

Yeah, exactly. But I'm relying on a couple of agents that are coming in. I've got another two tomorrow and so we'll just see what they. What their thoughts are and then we'll make a decision from there.

This is the one that you picked up, was it? 270 off market?

270. 270.

And what's your renovation spend plan?

No more than 20.

Perfect.

Which will include holding costs back on.

The market in February.

Yep, early February.

And what was, what was the original allocation of those funds? The 20,000 or 15 with.

Well, it was, it was originally to do a bathroom and you know, do floors. Like we've got wooden floors everywhere but carpet in three bedrooms and vinyl or lino in a kitchen. So we're going to rip all that out and you know, expose all the wooden floors and then have them polished. But you know, the guy that's come in today, he's sort of like, oh, do new blinds, put new carpet in the bedrooms. You know, take that fence down, put a new fence up.

You know, do the.

Oh gosh, you know, it sounds like.

You'Re preparing for his Christmas wish list.

Yeah, well, it won't happen. But it was good to hear his thoughts. But yeah.

Always just. So how much value do you think that'll add would be my response to every single one of those suggestions?

Exactly.

And as my daughter said, mum, it's, you know, this is not like the upper area of, you know, Newcastle. It is Thornton. It's a lower socio economic area. So you know, you've got to cater for that.

They might want a white picket fence. It means you paint the fence, it's there white.

Yeah, exactly, exactly.

And you and your daughter were very successful your last purchase. So you know what you're doing. So you know, take the information that you're getting from the agents and the on the ground information but just look, I really suggest that if you can find the time to just hit a couple of the open for inspections for rentals and for sale, just get a feel for what those other bathrooms are. Because if every, it's like, you know, if everyone expects the bath and shower to be separate and you're putting a shower over the bath, then it might just become a buyer's objection that you can't afford to make. So if they're not showing the bath, you probably just need to get out there and have a look.

Yeah, and some. A lot of the time. Now the toilet. Having a separate toilet isn't as big an issue as it once was. So most, there's a lot of. And that'll depend, you know, what's typical for the area too. But a lot of places around here have the toilet and the bathroom pretty common even in high end.

Yeah, really, I might do that on Saturday. Actually hit the streets very quickly and even if I only see half a.

Dozen, plenty that gives You.

That's a great idea.

Yeah.

There we go. We've got one.

Thank you. Thanks for that. Oh, we're really. We're really keen to. Actually, John, you know what? You should go up and have a look at Lorraine. And Lorraine, are you up for a video of your renovation?

Yeah, you can come up and do a video.

Absolutely. Yeah. Well, you're so fast at what you do. We have to. This is a blink and miss.

You have to be quick, though.

Reckon.

Yeah. Well, it's not that far up the road.

No, from Melbourne.

Newcastle's awesome.

Oh, well, from here. Well, I don't know. From Sydney. It's not far anyway.

Hey. I was born in Newcastle. I used to drive almost daily between.

You grew up in three places.

Camden. I was born in Newcastle. Mum and dad had to pull over on the side of the road to see my grandparents in Port Macquarie. And I was born there. And then we lived in Camden. Gled to winery and then we went to Dubbo. Right, that's it. Okay, that's pretty much.

That's enough. Yeah.

That's a fair few places. Well, definitely.

Yeah.

You're welcome to come up and I'll definitely post photos as we do it and let you know about the costings and stuff.

Excellent.

Thank you very much, guys.

Okay, good. Well, let us know how you go on Saturday.

I will.

I'll be watching that Facebook page. I'll put it on. Bye. I think Lorraine might just be giving everyone gift cards this year for Christmas.

Yeah. How good's that, though?

I reckon she's a star. Superstar.

Yeah. All right. All right. It's from Tan, who says, hi, Jane. Hey, how do you recognize public housing on the street without looking in Ripe House? He's got a dollar sign there. Or other free websites. I think Microburst might have some public housing info, doesn't it?

Yeah, Microburb says. Oh, let me just have a check. So which streets in particular?

So how do you recognize the public housing without Ripe House?

Okay, can you come back to you? I think what Tan's saying, how do you recognize it in the street while you're driving past without looking at software or other free websites? It doesn't matter if you pay for it or not.

Oh, he says, or other free websites. Yeah, I missed that.

So he's saying, how do you. Well, you never know who lives in public housing because in actual fact, I have public housing tenants in a well. Well, Kingsford, according to Yip magazine. Let me just pull it up here and show you. What's it say?

I knew a lady that used to say because the front lawn was long or they left the pegs on the line, which all things that I do.

I leave the pegs alone. Da da da da. Public housing. Okay, Kingsford median price now is 2 million. So when we started filming this, our video series and talking about things and I started sharing stories, my purchase, it was like when I bought for 625 in Kingsford. Now the median is 2 million. The. Oh gosh, I don't even know who they called. The office of Department of Social Services. They recently approached McGrath's when I had my property up for rent and asked if they could rent it. So, and I think I've shared this story before. So I've actually got public housing tenants in my property. So you know, and they, one of the criteria we had was, you know, they mowed the lawn, they looked after the property, et cetera. And every now and then when I'm in Sydney, I have to admit I do do a drive by being the kind of hands on investor that I am. And the lawn is always mowed so I wouldn't be able to tell that it was a public housing tenant. The thing is, Tan, in Melbourne nearly every suburb has some degree of public housing. And I know I flew up to Mount Isa once with a friend. We were looking at investing up there in storage sheds and we're talking to a lot of the real estate agents up there and they were saying on one side of the street there was public housing and indigenous housing and the other side of the street there wasn't. There was like a 30 to $50,000 price difference in the streets. And I know when we did the price pin map. Yep, the price pin map, which is like going to your local agent or if you've got RP data, getting the sale data for the last, you know, three years for the suburbs and actually, you know, maybe if the properties are between 200 and 250 it's a yellow pin and 250 and 300 is an orange pin and 300 and 350 it's a blue pin. And so you can actually see if there is a preference or a pricing band on the side of the street. So there's pockets.

So you mark out all of those past sales for the entire street and you can see little clumps of the expensive houses which might be one end of the street, one side of the street, down the bottom of the hill, up the top of the hill. Yep. So yeah, is it there? So we're just having a look at microburbs now to see if public housing's still there. Swear it.

Oh, here it is. I've got public housing.

There we go.

Okay, all right.

I'm flicking over Tan said he would like to see it.

Well, my wish. Your wish, my command. Okay, let's show you. So once again I'm here, but I'm in the affluent score here, which is where I was looking at the public housing information, the rental information, average income information as well. So here I'm looking at public housing. So if I look here, I can see 2% of the population in public housing.

So not much in this suburb if.

I was looking at the red. Now this is a neighboring suburb over here. So in Whalen, 49% of people in this area are public. Well, public housing over here, 40%. So Wayland itself has a huge percentage public housing. And I'm looking over here in Hebersham and I'm looking down here in Mount Druitt, which has now become our case study. And you can see there's no public housing here. We've got some green here which is around 50, what's that? 13%. So you know, we're looking here, it's really small percentage, but if you actually click on the public housing as well, it gives you an idea as what's, what's happening in the neighbouring suburbs. So you know, we saw a whale and here has 33% public housing. But as we just saw in that example, there's actually segments of wayland that had 44%. So when we talk about pockets of potential, there's also pockets of problems maybe. So, you know, you really want to get down to that pocket and finding out, you know, if public housing is of an issue. And often there's an assumption that public housing has flown effect of crime and, and maybe brings down the value of properties, et cetera. So there is that information as well. So yeah, I hope that helps.

Yeah, it's true. Actually where I lived in North Melbourne, which is quite close to public housing, and there was absolutely no problem at all because it was mostly new migrants that were, that were in there. So it wasn't kind of local generational poverty or anything like that. It was basically new migrants who are in low cost housing housing. So yeah, there was, there's virtually no.

I had an aunt living in, in public housing in Sydney and she had Balmain almost waterfront views and from a, you know, had a very sick son and she had the same apartment for over 25 years. So I don't even know if they reassess. Do they reassess?

I don't know. I don't know.

They give you in your inner. Yeah, but there is a huge demand and obviously with my house being rented, there's. There's a lack of properties available to put people in. So, you know.

Yeah, some of them are pretty. I remember in my camera operator days, we did a story on this Russian migrant who was a pianist, like a. And he lived in Kensington. And we went up the. So we actually went up the tower and we had the beautiful view across the city and the bay and. Yeah, wasn't too bad.

Inspirational for a pianist. Lisa, you've got RP Data Professional and you want to know how to turn it off. Just email diana. I'll support YourPropertySuccess.com and she will organize that for you. So next month you won't be charged.

Faster than I could type it. There we go. Okay, that's. That's about it, I reckon, because there's no other. Hands up.

Anyone want to say what their Christmas plans are? Share any stories? We're here. We've got one minute to go.

Oh, there we go. And well done, Anne.

Hey, Ann, what are you doing for Christmas?

It's coming.

It's coming. Hello, Ann. Merry Christmas to you too, Karen. Thank you. Oh, no, we've lost. Anne's microphone's not working. Type it in. Hi. She says, hey, how you doing? You're renovating over Christmas or taking a break? Great. Some people are searching for property. Yeah. Thanks, guys. Wishing you guys all a very merry Christmas. Happy holidays. What's. We have to be technically correct these days. What do you think?

Well, I saw there was a lot of things.

Oh, going through the modules is a great time to catch up and often we find a lot of the past students start going through the modules when downtime too and looking at the next property.

Good time to plan for the new year.

So I've actually had a chance to talk to some of our beta testers from late 2012, early 2013, who tested the ultimate guide to renovation originally for us and gave us some opportunities to improve it and add more value. And yeah, they're all looking at the ones I spoke to this week looking at the next purchase.

Speaking of which, actually, if you'd like to be a beta tester for Suburb selector software, because we're doing it in its own little course by itself, which is called Location Masterclass Unlock, pop me an email@johnourpropertysuccess.com johnourpropertysuccess.com and I'll put you in that group of people.

So we're gonna, we're looking for five or six people.

Yeah, yeah. Ask for a little bit of feedback along the way on Skype calls and that kind of thing. But yep, we're just developing that module up and trying to make it really clear and step by step, so we'd love some feedback.

Great. Well, they get access to that, that fabulous Suburb select software for yourself and. Yep. So look guys, you know, I guess we, we should probably wrap up because I know we did move the call forward a week because Christmas is next week and we've, we've had a, a big year, haven't we John?

Yep, sure have.

And we're looking forward to a bigger and better 2017. You know, I guess for me, I just want to let you know that we've, we've done a lot of work this year in, in looking at how we can serve you as our community further and you know, encourage and grow our community and have those success stories and be part of the success that you all deserve because of the hard work you put in. And we hope to shortcut that by giving you some tips and tricks and resources and software and just support to get you there.

Should we let on our New Year's goals, which is around the community? We really want to try and build the community substantially this year and get people helping other people and really try and leverage what we're putting out there. So yeah, so it's people helping each other. So if you're keen to get involved and step up and say play a bigger part in the community, we'd love to hear from you.

Absolutely. Because, and tell you, you know, tell people who are like minded and interested because you know, we can see great giants like API magazine go down because, because although they have a community, they're not really engaged and the advertising's not there, et cetera. We want to make sure that we can keep giving you guys a voice and keep sharing the stories and successfully.

And Julie's got a last minute question here. Do you always recommend 8 sales per month as a criteria for purchase, even out in the boondock suburbs?

Good question. The reason I do that is.

Julianne.

Sorry. Every time I run through this suburb selector software, I mean, you saw when we looked at step two here, we've got over, you know, what, 50, 60 suburbs and I've got to apply some type of criteria that is going to allow me to start filtering that out and I'VE never got to the point where I've said, you know, less than nine suburb, nine sales a month or whatever, your number might be six, you know, you might be happy to spend some time in a suburban, you know, see five out of every six go to homeowners that are emotionally maybe buying over the market price, knowing that you could just clinch that one. But the reality is that if I'm being strategic and playing the numbers game, I don't necessarily want to risk it all on, you know, being the one who gets the one that month or the next month or the following month. So if that's the case, some of the things you might do, Julianne, is even if you're out in the boondocks and there are less sales, is it might you, you might actually widen your search. So you know, we saw in step three, when we, we looked at the suburbs that were surrounding you might actually start looking at some of the surrounding suburbs and adding those on your list as well and start, you know, including those in your investigation. So when you're actually out on the weekends or looking at properties, as long as they still marry up with, you know, the percentage of renters and all the things that, you know, it's, it's important that you spend the time and effort in where it's best used. So if there was lots of suburbs and I came down to I've got 60 suburbs here, what are my criteria? You know, I'd be filtering them very severely because I know I'm always going to end up to three to four of the suburbs. But if you feel that you're really out in the boondocks, then I just add on a number of suburbs that start still fit your criteria and it might just be the ones that are nearby or it might mean that you might have to do a bit of traveling. So. Yep, that's what I do.

Paul just asked where do I get the suburb selector software. So in module 2 and 3 of the ultimate Guide to Renovation, it comes part of the Ultimate Guide to Renovation. But in the new year we're also coming out with it as a standalone course. Course. Yeah. Which will be called Location Masterclass Online.

And Location Masterclass Online. The people who attend our workshops, the live one day workshops, get access to that as well.

Yes. So it's better with it. It's virtually the workshop online video version.

Of the workshop souped up on steroids.

Yeah. But not filming the workshop, actually filming the what to do and how to.

Do it and how to investigate it. So. Fabulous. Excellent. So I guess that's a, that's it for us those in the Ultimate Guide of Renovation. You've got more, more modules to look forward to, which is really exciting. And yeah, get, get through them and, and have a look. And yeah, it's, it's going to be a really exciting time and we're really excited to see the success and the action taking that you're sharing in the Ultimate Guide to Renovation. And yeah, have very happy, happy Christmas to you all and, and from us, all the best until we speak to you end of January 2017.

Have a great time. See ya you.

Bye.