Your Property Success Mentor Call February 25 - 02 - 2016

You. Hello and a very big welcome. Now just before we start, as you know, we here at your Property Success love to spread the word about low risk, no nonsense property investment to as many everyday Australians as possible. And so often these calls contain some really great content and questions that would be extremely helpful to other people. Which is why we record the calls and reserve the right to share the content down the track. So by participating in this call you acknowledge this and for some reason, if you prefer not to be included on the recording, we just ask that you contact our office within 24 hours and we can edit you out.

So.

Hello and welcome to the second mentor call for 2016. There has been so much happening this year already and I'm bursting at the seams to tell you all about it tonight. Of course, as always, a big welcome to you. If this is your first time on the call, please, please don't be shy, speak up and say hello and ask me a question. And as always, hello to all the students of the Ultimate Guide to Renovation. And those of you in your Property Success club, please introduce yourselves too, say hi, make sure you get your questions answered tonight and get involved now. These monthly calls are exclusively for my mentoring clients, the students of the Ultimate Guide to Renovation, your Property Success Mentor subscribers, and of course my my Investors Choice Mortgages diamond clients. These calls generally take place on the last Thursday of every month. Of course, you will receive email reminders each month when the calls are approaching so you don't miss out. And best of all, you have access to the recording within 48 hours and all those past calls. And if you can't make a call, you can always leave us a message on the message line. 1376, 111. Or you can email us a question@questionsourpropertysuccess.com but before we get into the questions tonight, I should introduce the person sitting next to me. Here it is, the co creator of the Ultimate Guide to Renovation and your Property Success club. Hello to John Hubbard.

Hello Jane. Hello everybody.

How are you this month, John? You've been very busy.

Yes. What a month, eh?

I can't believe it's only two months into the year.

Yeah. Yes, it's. It's been huge. And I guess we should probably explain that we've just come off the back of a workshop over the weekend which was particularly huge, getting ready for it and it was a great success. And I guess probably not relief, just exuberance, really.

Adrenaline, I think it was. I don't think I've slept for the last Three days, just in one down mode. But it was kind of. It was one of those things we called an impromptu map get together last year and people were just saying, we want to see more of you and do more with you. And so with, you know, sorry for the notice, but I think with two weeks notice, we kind of said, hey, does anyone want to join me for a workshop? And we only wanted 10 people.

Won't be the last.

Won't be the last. Well, more about that later. But, John, over the last couple of months, you have been sharing with us your developments that you've been doing. Two developments.

Yeah, yeah.

Can you want to give us an update because.

Yeah, I haven't got show and tell today, but there's. There's not that much visually that's changed on the. On the first one in Canterbury. It's the facades. It's now locked up, so they're onto the. What they call the rough in for the electrical.

Oh, good.

And that's just basically drilling holes in all the studs and under the floors and all that kind of stuff, and dropping down tiles that, you know, bits of wire basically in the position where the down lights and stuff are going to be. So it's just been a bit of walking around with the electrician, Sparky, and making sure that everything's in the right spot and that what's on the plan is actually makes sense in reality.

So not just juggling a workshop and everything else you got on, you've got. Not just that Canterbury development, there's another one as well.

Yeah, and the other one's going really well. I'm wondering. It started about six months or probably, and the rest behind the first one. But as I think I've said before, Taylor, two builders, these guys are just, yes, so good and so good with their communication. You know, he takes photos with his phone and send it to me with a message and, you know, follows up conversations with email confirmations and all this kind of stuff.

Gee, professional builder.

Yeah, it's nuts.

It's interesting because, you know, obviously we had the. The property challenge last night, webinar, which I can't wait to tell you a bit about, but the insane AM of properties that were put up on our Facebook page. The Ultimate Guide to Renovation. So check those out, guys. It's still up there and live. I think I reviewed over 80 properties, but there was one lady in particular who had a story of woe that included. I think she was in Daylesford, her builder was on, had an ice addiction, kept going and there Was there's lawsuits and oh God, you know, it's a renovation gone wrong in so many different ways. So having the right team behind you is just so good, isn't it?

Yeah, it makes a difference. And yeah, it's. It can be hard. You know, you get the, the builder that we chose the. On the first development and you know, it's nothing. Nothing. It's nothing that's going to really hurt us. The. We've been lucky that it's. The main thing is it's. It's gone longer than it should have, you know. You know, probably four months longer than it should should have. But the suburb luckily has it been in, had some good growth in that time and along with the. The other suburb we're developing in. So it doesn't really hurt us. The growth in the suburb is well and truly canceled out the holding costs. But we'd used him before, we'd used him on other types of developments and it had been a completely different story. And I think part of it was that the type of building that it was a very bespoke kind of higher end townhouse or townhouses was just probably out of his normal remit. So that's what I've kind of put it down to. And also because these are going to.

Be well worth over 1.5 million each, aren't they?

Yeah. Oh and yeah, potentially over each. Each one of them be over 2 million. But we'll see. We'll see.

Which is a nice little development if you have one, right?

Yeah, yeah. But I mean, I mean it sounds like a lot of money but it's the amount of money to get into the deal, which is. Which is awesome. Yeah. Which sounds like a lot too.

Exactly. Well, I guess the, the great news about it though is that. That the second development being almost ready, you're selling those off the plan, those ones. But the first one on completion, aren't they?

Yeah. The advice with the first one it was down to the demographic was that and I said it before on the call that the advice has been that it will be a downsizer probably coming from one of the large houses and it's in quite a plush area. These are kind of anywhere it's very hard to buy a house, like a big house for under $3 million. There's typically three to five is probably the range. So there'll be a downsizer coming from a home like that that wants to stay in the Canterbury area and there's just no options for them. If you go to. In Canterbury and Kew and this is. I'm sorry to be so Melbourne centric here. But you go to these opens and the single terraces, the little, you know, 5 meter wide Victorian terraces, all gray hair. The whole everybody inspecting the property is like above, you know, 75. And because there's no stock for them, there's nowhere to go. They've either got to go to a single terrace to downsize or they go to a apartment. And they don't want to live in an apartment. They want to have, ideally, ground floor, small garden, not. Not much maintenance, but. And they don't want to move out of the area because they've got all their roots in the suburb family and everything else.

They know the area well.

Yeah, that's right. So the. So what I was getting at there was the advice was to take that all the way through to auction, to not go off plan with that one. And because that was the market for it and they wanted to touch and feel it and so on. And the other one we did was for a slightly different demographic. It was more likely to be someone who really just wanted to get a foothold in the suburb. This is in Camberwell. So the decision was made to go strong with an early campaign off plan and then if it didn't work out, we could always pull it off for, you know, four months and then do another proper campaign again. But yeah, and we've had some interest. So we're still. The story continues. Nothing. Haven't sold it yet, but fingers crossed. Yeah.

Good job. Well, I guess one of the things that you just mentioned there is so important is, you know, there was a bit of a slippage in the time frame with the Canterbury property.

Yeah.

But growth has made up for it and that. I mean, you know, we spent last Saturday, pretty intense last Saturday with 10 fabulous people. And I can see some of you there on the call right now.

I've even got some pics. Hang on, let me just pull up.

Oh, you got some pictures.

Yeah.

Oh, okay. There you go. And the fish was this big. That's what I'm saying there, right?

Yeah, that's right.

And they were just amazing people and it was an amazing day. And. And as I said, you know, we kind of pulled it together quite quickly, thinking that honestly, it was going to be the only one, but, well, you know, who knows? But, you know, it was fabulous. And, and the whole focus there was the suburbs, hotspots and finding that right suburb. And as you said, you know, what you've made up with. And that's why the Trident strategy, I find, is so important, you know, having that plan A, B and C to make money. Something happens and goes a little bit wrong, you've got the other two that you've already got the backup. And that's the case here with that slippage with the renovation project or development project. So. Well, let's talk about the Sundome hotspot.

It was just fantastic. I think we've. I'm a systems person, I love systems. And, you know, when I think about. I think the. Probably the big difference between. And we've really systemised the suburb selection process in Location Masterclass and the Ultimate Guide to Renovation. And we do the. Also in your property success club, we've got the dot map exercises and so on. But then on top of that, there's all the world of paid reports. And for instance, I think we nearly paid $1,000 in reports for Melbourne for this workshop. The workshop was hot spotting on Melbourne specifically, but of course you can apply the techniques to anywhere. And it just added a whole new level. Just. Yeah, it was a really.

What do you have? Can we pull up some of the reports? Because I'd love these guys to get familiar with them because I know we should. We talk about the. The free websites and things like. So this here is. So this is the predictions report that we purchased from Residex. I think it's $215 and we have a discount code of 10% for our students. So this is a fabulous report and, you know, there's a really. There's good market commentary and information there. But, you know, what we're all interested in is those actual suburbs. Move my microphone a little bit so I can access this for you. So we jump down. What's happening in the world? India, what's happening in Victoria, all very good. Raid should do it. You know, read through it. But, you know, what we're really interested in is, you know, this to me is really important, just looking at where we are right now. So the household income for Victoria, we've got, you know, median house cost, medium unit cost, we've got some information here on rental yields for the area. So, you know, this is kind of a bit of a benchmark. And then we get into, you know, what's actually happening, capital growth wise. So they do all of Victoria, lots of suburbs. So this is the top hundred. So this is what the predictions are for. And this is the reason that I really like the Residenex reports because, you know, we use the dot map to create essentially our own predictions report and ripple effect. So we. We don't have to go and spend the money on doing this. And what we did in the hotspots workshop is we did the dot map. And it's amazing. 45 minutes, 5 people, 1 dot map, lots of dots.

Yeah. People have taken months to do those dot maps in the courses, but 45 minutes it was done.

And actually we did two. We covered 1996 to 2006 and then 2006 to 2016. So pretty, pretty amazing. 20 years of dot mapping in 45 minutes. 10 people.

So it's good fun too. Actually, can I gotta show the picture of that?

You got a dot map picture?

Yeah, yeah. We have more here.

And there's the dot map there.

There you go. There's the 2 dot maps.

2 dot maps, yeah. A bit of a chat afterwards. Everyone taking photos of the dot maps. Yeah. So there's the two groups. We had east versus West.

Yeah, east side. West side.

So I was thinking about the outsiders. That was that.

Oh, you were going le g on that.

But anyhow. And so. Yeah, that was fabulous. So we did the dot map and we came up with a list of about 18 suburbs. And then we went into the paid reports. So we actually got, using these paid reports, lists of. Oh, gosh, I think we ended up with about 38 suburbs that we went.

Then to analysis five different sources.

Yeah. So, well, let's just pull up that report again because I think it's just. It's just cool to see. You know, these are the top ones. You know what's kind of interesting in this is, you know, we put some criteria around this that we only wanted to go up to postcode 3200. So we only wanted Metro. That really got us to about 25ks out.

I should mention that just so how we did that criterias. Once we got the all of the reports, we then brought them into the location spreadsheet. Yeah. Which is available. Which if you're in the ultimate guide to renovation, you're using already module three. Yep.

Two, two.

And then three due diligence. So. And we also wanted to have a price point below a million dollars. So, you know, this is what knocked these out. Now, what fabulous here, you know, these top four, even five suburbs within, you know, the next eight years. So nine, 10, 10 suburbs. The top 10, we're looking at 7% growth. Now, if you remember that rule of 72, take 72, divide it by the predicted growth and that is what is expected to be how long it will take you to double the value of your property. So 72 divided by seven. 10 years. So, you know, 10 years to go from a $612,000 property to a $1.224 million property. So pretty fabulous. So this is the first report that we pulled that we. We love. So quick little look there.

Can everyone see this report okay on the screen? Just checking that the screen's coming through okay. Yes, perfect. Thanks, Gabriel.

Thank you, guys. So there you go. Quick little. We shouldn't show too much of that. Oh, you should be paying for this report anyhow. And can we pull up another one of the reports?

Yeah, I've got a couple more here.

So we went into. I guess we pulled a lot of data. We do use Ripe House quite extensively and Residex in particular with their paid reports. So what we obviously love in the Ultimate Guide of Renovation is looking at the renovations report. Now, this is the top hundred report. And I've probably told you before because, you know, I love telling people this, but I was kind of responsible for the renovation reports. Knocked on John Edwards door and said, hey, have you got all the data about every street in Australia? And you revalue properties every month and you can differentiate the number of properties in a street by how they rank. Why don't you tell us what the below market properties are and what the above market properties are? So this is pretty fabulous because it gives us the suburbs with the most streets which have the renovation potential. And just as an added bonus, we also get these predictions of the growth. So once again, we left it from 3000 to 3200 postcode and then below a million. So obviously 2 million was out. And you can see how quick this kind of assessment is. It's like, nah, that's out 2 million. That's out 2 million. That's Out 1 million. That's out 1 million. This is out 1 million. This is out one million. This is out 800. So number seven, this is the one I couldn't find last night. So, you know, 102 streets in Coburg. This is the first $100 million. Median price, 807,000. Something to say about that?

No, just that Coburg was the winner of the competition last night. Have I given it away?

Have I? Not yet. Let's hope no one was listening. Brian's pointing at John saying, don't say anything. I'm going to give a book away. Brighton East Hawthorne. So, you know, this is Essendon. So once again, over a million. So you're starting 922 Brunswick. So, you know, there you go, you got the top 15 guys so you know what's really keen about what I really like about that report is that once you have that overview, you can jump to the next report, which is actually the report report for the suburbs as well.

Let's have a look.

Okay, cool. Gosh.

Yep.

Yeah. So here you go. So this is the specific report you would purchase next. And this is the renovators report for a specific suburb. So we actually got on a minibus, headed out to a property, did an inspection, show people what to look for in some target areas. So just giving you an idea of, you know what this does is it gives you the streets ranked by the renovation potential. So they take the median price for the street. So we take talking per street we've got now from the suburb down to the street, the median price. So not all streets are created equal as we know. And we then look at the distribution across that street is if you did a 10% cosmetic renovation, is there enough in the disparity between the properties at the lower end of that street value to the top end to make money and a return. Now they've calculated here a return of 20% and we try to do at least $2 for every one. So you can see here, if we have a look at this Adderley street, there's 43 houses in the street, which means there's only three to five properties in this lower price range of around 677 to 8 24. So you know, if you're going to then go into your RP data professional account and set up a territory and all just link this, this street, you can do that and you can put a watch list on this street and say any properties that come on the market in this street, notify me. So you're ahead of the game. So we really, we showed everyone how to do this. But essentially you can see here, if you could buy around that $677 60,000 or $70,000 renovation and get up here around 995, there's profit potential. The great thing is too is that these lease some recently sold in the street information and anything that's on the market at the moment. So these are generated currently. So we can see here Anderson street in Yarraville, 5:24 to 7:22. There's 15 properties in each one of these, 10% differential. So you got a bit more of a chance here. But you're looking here, you've got two price groups here, so 30 properties where you could actually make a profit and his two on the market at the moment. Unfortunately their estimated value is above this. But geez, look at that differential there. There's a 1.5 estimated value only, you know, what's that? 40, 20 houses down from this one here. So this is what you're looking at obviously different bedrooms, etc, you know what's been sold in the area. But fabulous report, loving it. And then, and then obviously you know, so these reports, I think 215 each.

And a new one this time.

Yeah, actually I purchased this. Oh gosh, the, the week before. So it was up to date and current. So this is live data that's taken every month. So I think it cost me 95. And basically anyone has seen Ripe House. You know, we have a great relationship with Jacob and we share a lot of information.

Yes, he helps us with our location masterclass spreadsheets a lot.

So if you're one of the ultimate guided renovation students from 2013 or 14, you may have missed the fact that in Module 2 we heard you loud and clear. That said, we don't want to fill in the spreadsheet as you told us to go to 30 websites. So we've filled it in for you and update it monthly. So go and check that out. But this is cool because what Jake had done in the last four weeks is he's actually created these different strategies. So he's got this undercover boomerang and big Green and, and depending on all this market sentiment he, he classifies areas and he looks at the local government areas and the suburbs and states and he pinpoints, you know, the top standout categories. So we can see that Queensland is really coming to its fore here and Hobart. Unfortunately for our hotspot in Victoria it was Geelong or specific areas in Geelong. So we disregarded that. But as I said we had five different areas. I think I've got one more report. Can I pull up the little suburb report? These are usually I think $90 from Residex or obviously if you're oops.

I reckon I can get you here. There we go.

One of my Diamond Mortgage clients. You get unlimited access to these suburban and individual property reports. So these ones are doll. This gives you a kind of the last 10 year history of what's been happening in Yarraville. And so that was a suburb that came up and we also looked at houses sold, what the predicted growth was compared to Melbourne. So we're looking for out prediction of the local area obviously and anyhow and some good prediction results here. So what's been happening? So this is a report that you can, you can purchase as well. So we looked at a lot of reports. I'm not going to give away the 10 hot suburbs that we, we uncovered because giving away two already 10 people are, you know, are out there purchasing. The really great thing is we had people from drive over from Adelaide and those who came down to from Sydney. So people came from everywhere which is fabulous.

Yeah, I just thought it was a great process of elimination starting with all those paid reports then putting them into the location mask class spreadsheet and by the time we got to the the end there was, we'd really.

Gee, we got rid of all the.

All of the rubbish suburbs and there was only gold.

And quickly.

And quickly. That was before lunch.

Yeah, yeah. I was just thinking as you're going through the report there, we're doing those in kind of 10, 15 minutes a pop to get the, get the list.

And I think sometimes you kind of get stuck on that suburb selection stuff and I know people I've speak to say you know, we've been looking for the last 18 months and trying to decide where to purchase and anyhow so this made everything concise. Actually you told me that. Did you tell me that you had some comments from people?

Yes I did but I was just. I haven't finished show and tell. Have we mentioned the property inspection?

Oh no we haven't. So here's the beautiful people. We're standing around, we've been through the property and had a fabulous agent who opened it up for us and just our little group and we went through and we talked. Oh hello. We talked about.

You haven't seen these yet, have you?

No, you haven't seen them. Hello. Didn't expect that up and Close and Personal. That Christie Brinkley Wrinkle Cream on the fire wasn't working that day. But no, we. Look, we had a great fun and we went through our checklist and we talked about potential and we got down into costs and then we pulled out and went time to move on. Probably not the right one.

Yeah, which was what one of the comments is, but yeah. So all in all. And when are we coming to New South Wales? Well I think that was one of the questions that came back when we were inviting people to come to the workshop in Melbourne. Are you coming to Brisbane? Are you coming to New South Wales? What's the answer to that? Jay.

You'Re looking at me. You put me on the spot here. Look, I really didn't think we wanted to do this and spend some time working out exactly how to do this and procedurize it and make it possible and I guess with the insane kind of feedback that we've had, it seems to me that and how much fun we had. In actual fact, I think we had cold drinks at 7 o' clock and move on, didn't we? But, you know, I think. Okay, yeah, I think. All right. All right. Melbourne. We've done Melbourne. Maybe Brisbane and Sydney could be on the cards.

Yeah, I think so.

Is that what you want to hear?

Yes. No, I think so. I think. Well, it's already just from people who have inquired about this one, I think, and this one filled up pretty fast. So actually, let me just put in, I think the best place if you are interested in going to it's Sydney or Brisbane. How can I do this? I can just put that in there and send to everyone, can I? Is.

Is anyone on the call interested in doing Sydney or Brisbane? So. Oh, we've got a few Sydneys. Oh, gosh. Okay. We got a lot of Sydneys.

All right, Jane, at YourPropertySuccessClub.com here I.

Was thinking we might have a quiet, you know, a month or two off. But no, no, I want to go.

To Sydney in Brisbane.

Yeah. Okay. All right. Well done deal.

Right, I've got one last surprise for you.

Oh, God.

Yep.

Okay.

Hopefully this will play. I've got some videos that you haven't seen yet from the actual.

Am I going to Blush the workshop as well.

I've been to a lot of seminars and a lot of. I've invested a lot of money into my investing, but this just.

This is just the.

This is the best that I've ever been in.

What you get out of it is invaluable. It's the difference between buying a property in the right area and making 50,000 and buying a property in the right area potentially making hundreds of thousands of dollars.

Today was amazing. I learned so much. I've been investing for quite a long time and I've been to pretty much every seminar presenter that there is and they're great. I'm not knocking them, but James presentation today was just amazing. Blew my socks off.

Why?

Because we really got down into the practicalities. We explored what we needed to do to make sure we're on the right path and what we need to do then to get going with our investing and move on from theory into practice.

Invaluable. I mean, you couldn't put a dollar value on it. It's for the first time, like I said, I've actually got steps that I can put into Place that are going to get me to where I need to be along here. So instead of. Instead of just having all of these things that I can use, I actually know how to use them. And I can go home and sit on a computer and start to do what I need to do.

I learned heaps.

Oh my goodness, so much where I think. But yeah, I think I learned more clarity of exactly where to look, what suburbs, what tools to go to. Yeah. Because I had the overall picture. But now I feel like I can literally go home, spend a few hours on it, and get exactly what I want from it. Yeah, I do. On my own without asking somebody else.

I have looked at a lot of other programs and looked at a lot of other people who teach property investing and they're good people, don't get me wrong. And the message is the same. But Jane has given me something today that in the six months of research that I've been doing, nobody else has given me, and that is clear, concise steps that I can use on my own at home, with a base that I can then swing back to and ask questions of and rely on that nobody else I know does in anywhere close to the way Jane does it.

We went and saw a property today which was a genuine candidate for a project. And by the end, we worked out why it wasn't a good idea to proceed with this one. I've done projects before which look great in my mind. I think perhaps I'm too optimistic or I'm not aware of all the pitfalls. And it made me much more aware that you should just do the projects, to tick all the boxes and not settle for something which you feel could be good or go on a hunch.

Or something like that. She doesn't just give you the tools, she shows you exactly how to use them and the knowledge is invaluable. She's very sharing and caring and wants everyone to succeed. She's awesome.

It's something I haven't come across before. And as I said, I've been to lots of seminars. I've been involved with a lot of stuff.

This is just.

This is top shelf stuff. Jane's very one on one sort of person and her whole crew is, when I come to the seminar I was rang, make sure I had all my needs as well. It wasn't about their needs, it was about my needs, which I really, really, really thoroughly enjoyed.

Okay, so now I'm crying. Thank you for springing up. Yeah, well, look, we're really proud of. Of it. And what's Tracy Said, here you're going to need a big bus for Sydney. Not trace. It's always limited to 12 people. So this is. This is like real deep, deep masterclass workshop kind of stuff. This is amazing group of people. A lot of experienced people, a lot of people currently in mentoring programs paying well over ten grand.

There was a couple of references there.

This is extraordinary. And who weren't getting kind of that deep location stuff, so, you know, we're really privileged to spend the day with.

They literally had a list of suburbs to take away with them, didn't they, for Melbourne, which is the they were talking about.

And then they can replicate the technique anywhere else. So anyhow.

So.

Oh, my gosh, I'm overwhelmed. All right, so what else has been happening? Oh, gosh. Well, February, let me just think. So I have declared no New Year's resolutions this year. I gave myself a word compass and staying on track and making sure that everything I do is getting me to the goals and things I want to do. So. Well, my. I gotta say, the bootcamp trainer this morning told me that I was going to not be able to use my arms tomorrow. So that's something to look forward to. So I'm still diligent on that two months in, so that's good. And, you know, as in the beginning of year, people have a bit of new lease of life. So two of our tenants have handed in their notice. One leaves in May and has already lined up their friends to move in. So pretty thankful for that because we were thinking, oh, we're going to have to go up to Sydney and do a quick cleanup, and then you've got the vacancy, you know, between getting tenants in and then the re. Letting fee and the other tenants put in the notice. And we had a chat to the agent about that. And, you know, she. She thinks that something, you know, there's the opportunity to move people in quite quickly into that too. So, you know, we might be putting the ladder in the back of the territory and, you know, turning up to Sydney at some time. Yeah. Having a good trip. So we try to keep our son entertained by getting to wind down the window and moo with cows. And it's amazing how many move back. So, yeah, that lasts us till about. Oh, Shepparton. Yeah, that way somewhere. Anyhow, so that was pretty good. Oh, look, I hope some of you guys. Did you guys get onto the. To the webinar last night? Did anyone get onto the property challenge? Just type in and let me know, because I have to say, you know, we. Oh, My God, we had over a thousand people register for that and we had our socks blown off. Had the wonderful Karen Young, who's a buyer's agent in Brisbane and Surrounds from Property Zest and obviously the person behind the podcast, Everyday Property Podcast. So, you know, she was fabulous. Look, I think I went through over 83 properties that I analyzed and came down to seven in itself was pretty exciting and reading some of the stories behind it and, and then of those seven, I analyzed them with Karen online last night. We will be putting out a recording of that, won't we, John?

Yes, the webinar link, the replay link will go out tomorrow morning.

Perfect. Because I think it's so valuable, you know, I don't, you know, sometimes we have technical issues and we tried some pretty interesting stuff last night.

Yes, it was technically challenging as well.

So we will be sending the link because I have to say I really don't want people missing out on that. And I don't think, I don't think many people can say. In actual fact, I had a couple of well known property people I spoke to today who rang up and said, you've set the bar above any other webinar.

Well, it's unusual, isn't it? It's unusual for someone to kind of put their name on the line and review properties that are on the market at the moment in real time.

Yeah, true, but you know, you know, we have to, we got to share the love share with what we can do and that's what we're here to answer some questions with you tonight. So here's a competition. Competition. Get your fingers ready. I think I've got here the Armchair, a book. The Armchair Guide to Property Investing by Ben Kingsley and Bryce Holdaway, two good friends of ours as well. The winning suburb last night on the property challenge was type Gabrielle, you win. We'll be sending you that closely followed.

By actually just to make you feel bad.

Okay, guys, so look, Marcus, you know, big call out to Marcus. He scored free access to the ultimate guide of renovation. Obviously, this webinar is the. Can we click on that and maybe pull up the property. This webinar. What am I going to tell you about the webinar? This property? So we went through the seven properties. There was three of them from South Australia, actually a couple from Queensland. We had some real beauties. Sorry, just bring this on you. I know you. And so this is, look, this is. Talk about diamond in the rough. Really, this is a great little property that, you know, you just look at and you go, oh, Love the paneling. Got some, got some opportunity here. You know that when they, when they show you the. The surrounding suburbs and not a lot of internals that this could be some, some issues. I'd definitely be getting my building builder and building inspection done. There's some, some real issues here. But the fabulous thing about this property and although it's on a busy road, etc, we actually pulled up the renovator report and we went to this street and the pricing disparity in the street was insane. So, you know, great opportunity there. And yeah, congratulations to Marcus. He really, he followed the Trident methodology and you know, and actually quite a few people on the, on the.

Who were.

Who I selected had done like the DOT mapping and had found the area. So, you know, we validated the area, we looked at the renovation potential and we're talking strategic renovation here, guys. And I guess it's no secret by now that we believe strategic renovation and making a profit has a lot to do with location. So right suburb, right street and then right property. So fabulous. And of course, that was all about the big launch for this year's intake, one of two intakes for the Ultimate Guide to Renovation 2016. So we're really excited because that starts next week with the free video series. So video 1, 2, 3 and 4. And in actual fact, we are shooting video for few little, you know, fun changes next week that includes a drone that John promises me he knows how to fly and it won't crash into me when it does a flyby. Is that right?

Well, anything goes wrong, just run and deny knowing me.

Okay, good, excellent. So watch, especially watch that video for and the drone shots because you'll more.

Importantly watch the real life renovation case study.

Yeah, which would be the better one for me. I just, just as I can dodge the drone, I'll be all right. So look, mid March, guys, we're opening up enrollments and really excited about that. And personally, big shout out to my wonderful mother glennis, who turns 70 tomorrow. So we're going to celebrate these happy birthday big life events. So very excited about that. So, yeah, guys, big, big start for the year and more to come.

And big start to the webinar.

Oh my gosh. Anyhow, all good. Well, shall I get onto the boring housekeeping stuff so we can get into questions? Okay, so look, if you're on your computer and experiencing problems hearing, perhaps you can't hear during the questions, there's an option to call in the telephone and the telephone number can be found in the sidebar under the audio Options drop down menu. You can call that number from landline, mobile or Skype. When you do have a question, look, I ask you that you raise your hand if you've got a microphone and you can do that by pressing the little hand icon in the sidebar menu or you can actually just put a question into the chat box. So by clicking on the hand button, you're notifying me that you have a question and you've got a microphone and we can chat and I'll unmute your line and when I do unmute your line, you'll hear a message that says, hey, your line's been unmuted. Look, you can ask your questions as said in the chat box as well. Just don't put your hand up. I do give priority to the spoken questions because I think it's, I don't know, it's a lot easier for us to understand the question in full and get to the bottom of it if we can have a chat in real time. And it's also more engaging. And it's nothing worse than us sitting here going, hello, hello, can you hear us? And so please have your microphones tested and ready maybe for next month.

Don't mute yourself. We'll meet you if you need to be muted.

Yeah, so look, and gosh, especially for those first time on the call tonight, there's no such thing as a silly question. You know, we're here to help and you know, these calls usually go for about an hour and a half. We try to top it at two hours and call it a night so we can all get home. But you know, if you do have one question, ask it. If you have a quick follow up, go for that too. But you know, we'll get on to everyone's questions and if you have further questions, put your hand up again and we'll make sure that no one misses out. So lastly, tech support. I'm not your tech support person. I've done a lot of tech support in the last week. I'm not your tech support person. So look, just a reminder that this is not a tech support call. If you're experiencing any problems, you know, with videos or downloads or accents, etc, look, we can't fix it now. Please email supportourpropertysuccess.com and we'll get the right people into fixing it. So that's about it. No one has called our special 1300 number this month. Are we going to can the 1300 number?

It's looking that way, isn't it?

No one likes It. Oh, well, okay, well, if you can't call, you know, obviously get on the mess on this call. So let's see if anyone's got their hand up or if we've got any questions for this evening because we.

None yet.

No questions. This is gonna be great. Easy.

Mark.

Mark asked a question.

Yeah. He said, do you mean advice from the real estate agent? I think that was when we were talking about the, the demographic and where the demographic had come from. So yes, is the answer to that. It was advice from the real estate agents, several real estate agents.

Oh, that you had regarding what the demographic for that specific area was.

Yeah. In fact, they said that it was. It would come from probably a 500 meter radius. That's how close these downsizers would be because they want to stay nice and close to their tires in the community.

So they're not moving very far at all.

No.

Which is really interesting because we hear about the sea change and the tree change and everything, so might be a.

Slightly younger demographic that as well.

Look, I had an interesting week last week. I jumped on a plane and headed to Brisbane for a conference for the day. And, well, you know me, never backwards. And coming forward, I managed to snaggle Chris Richardson from Deloitte's Facebook. Now, Chris, Chris used to work for the Treasury Department and he gave a really interesting information regarding why Brisbane is the place to buy and the population growth and oh, my goodness, he's. He's a little dry, I have to say.

He.

I do like my stats and I was taking frantic photos of his spreadsheet so I could understand them a little bit later. But I managed to corner him later on and I think he was more surprised than anything else when I said, hey, can I video interview you? And you know, you're the guy who was at treasury and modelled, you know, 10, 15 years ago, capital gains tax and negative gearing.

Oh, yeah.

With the questions that people are asking today, you know, what do you think is going to be the case? And he cited a report that Deloitte has put out on this. But when I pushed him a little bit further, he said that they had modelled it and the income, average household income and the inflation parameters actually are far outside the scope of what they initially agreed to when they had set that 50% capital gains tax discount and he believed that it should be more like 30%. And when I was, you know, asked about the negative gearing effect of that, he pushed on and said that if they did tackle capital gains tax and reduce that there would be no reason at all to touch negative gearing. So guys and then I asked him about population growth and how pushed up capital growth for areas because obviously there's a lot of reports and information coming out about where people are moving to an interesting thing and he had statistically modelled which is like burn of salt. I love all these modeling. I never go back and check exactly that they know how to model but I'm guaranteeing that they've been guaranteed that they've got the economists behind them that do that and they've said that. Where am I going with this John? The modeling would indicate that Brisbane is all always 18 to two years behind Sydney and it is an affordability driven investor splurge. It takes about two years after the Sydney market has peaked or been really riding that boom area to then have the Brisbane market peak or come through and have the flow on effect of it. So he thinks that 2016 is the year for Brisbane. We know that we've got a lot of buyers, agents and friends of your property success targeting South Australia at the moment. I still have some doubts about the, the economy down there but anyhow and, but yeah so interesting. So guys there's three Facebook pages get on and like it please There we've got like the pages we've got investors choice Facebook slash Investors choice mortgages. There's one of the videos there about the capital gains tax backslash ultimate guide to renovation video there about the negative gearing and backslash your property success which is the video about population. So just I don't know minute videos but I thought they were great.

Farhad has a related question. What happens to the property market if the new laws go through in removing the benefits from negative geared properties?

Well Farhad, I'm not an economist or a statistician and that's why I asked Chris so I suggest you go and listen to what he says. But you know I've been reading all the speculation and the doom and groom and gloom and I think that kind of like the building deductions and kind of the changes that were trying to be put in previously around depreciation of buildings everything is grandfathered. So I think if you've got properties now there's not going to be the issues with worrying about that negative gearing changes. It's the properties that you're going to buy in the future and the theory is that you know there's going to be a push there for and maybe benefits associated with newer properties that they may have negative gearing benefits to try to I guess Eat up some of the oversupply. Some of the states or major capital cities are seeing with the properties. Look, the reality is that there's the majority of people who buy or own investment properties at the moment have a household income less than 80,000. Now we just saw on that Victorian report that the average, you know, house, sorry, personal income less than 80,000, but household income around 100,000. So there's a lot of people that aren't what I would typically say, rich. Having said that, 80,000, if you read up on the, you know, what is happiness? A lot of us studies say, and obviously depends on exchange rate. It depends on two things. One is around $80,000 is, you know, caps your happiness peak. And also earning more than your wife's brother in law.

Than your brother in law.

Than your brother in law. Your brother in law.

Yeah.

So you know, as long as you can beat your, your brother in law and earn about $80,000.

What's your brother in law like?

My brother in law is fabulous. Yeah.

So how do you compare?

Oh, I think we. I don't see. I don't know, I'm just happy. I don't know. I'm gonna have to go back and.

Have a look at that.

But so interesting that this whole targeting the rich people and the rich tax, a lot of people have got negative geared properties. I wouldn't necessarily categorize as rich, but I don't think it comes down to what people earn. It comes down to a lot of properties. I think something like 30% of properties are positively geared. It's once again like we've seen with the APRA changes with the lending restrictions. There's this broad brush that has been painted across the entire property investing industry, for want of another word. But property investing market that is really targeted to just a few issues. So you know, I think that there may be some flow on effect, there may be some loss of confidence. But whenever there's loss of confidence, Farhad, what we find is that there's opportunity for those that are ready to pounce. So, you know, there you go.

Oh, good.

All right.

Gabrielle's got a hand up him. Sorry.

The winner of our book. Hey, Gabrielle. Gotcha.

Hi.

I had a question just regarding, you know, the Residex reports. So if I'm looking at an area around Wollongong which isn't currently featured in the master class spreadsheets or the data, there is any way to get the predictions. I know they cost like $50 with Residex. Is that the prediction kind of numbers for the five and eight year kind of growth.

Yeah. So those property reports, Gabrielle, as a diamond investors choice client, just email this the suburbs and we'll get those to you.

Oh, okay.

Yeah, great.

Done deal.

That was easy.

Now for everyone else who's not a diamond client, those suburb reports can be purchased. Look, Residex, the only ones that do the paid prediction reports I believe so that's where we access that information. But another source of the predictions data, you know the Sunday newspapers. I think it's April. Sorry, April. Or maybe April, Autumn and spring. The Sunday paper, you'll see that great big glossy pull out. So twice a year there's a glossy pullout and they go through and they do you know the suburb predictions. Have you seen that Gabrielle?

No, I haven't.

So watch for your Sunday paper, you know the trashy Sunday papers. So I think it's domain, it's the domain reports. I could probably even bring one up. Do you want to see? This is interesting. No, but pull them out. And Australian property monitors often goes through and it does for the whole state, it goes through and it actually pulls out the predicted information. So yeah, you can also, you could.

Also find kind of only once a year and we don't actually know when it. Do we know what date it comes in? No, it's actually kind of random I.

Once found and I'm going to talk amongst yourselves, I'm going to find a link that I found once and test it to see if it's still. It's one of those closed links that I have no idea how I found it to be honest. But it's those reports in print. So let me just see if I can find it.

Yeah, the only one I've ever seen is the one you had.

Yeah.

And I've got like six years of them.

It's not something that's too easily accessible.

No. So let me just see if I can find this and if I can I will play it.

Yep.

Okay, so check, check out this domain.com public guides aspx so this is one of those, you know, 2am up with baby I discovered this and basically this is what the guide looks like. So you know you can download your property guide. So it's domain and as I said they're usually done in.

So we've got December by look of.

It we've got the December report and we've got the. These usually spring. So here's spring here, state of the market. So they come out at different times. So obviously 2016 hasn't come out as yet. So watch for it, but that's where you'll find them. Now, this link is not easily found. It's not like you can go and find it. Well, you couldn't at one stage and tell me we're just out of interest. No, I won't get you to tell me your suburb because then you'll have everyone interested in your suburb. But just, you know, if we pull this up quickly, we've just pulled up the most expensive suburbs in. In Sydney.

But this is AP Australia Managed property.

Yeah. So it's important to see where the data comes from. So the way that you can do that is usually they declare it up the top. So they say this data is from a nice little story and have a look. What it does do is it gives you a little bit of information on the growth. So it will tell you is that big enough for people to be able to read? I'll try and make it a little bit bigger. So it's going to tell you information about the average or median house price over the last two years. The change the trend for houses and apartments, the total sales and the top three sales. And then this box here, it does a predicted growth for the next year. So, you know, interesting. So, but yeah, hope that gets you. For people who, you know, don't have access to the paid reports or don't want to spend on those, this is what you're up to. So there you go.

Great. Thanks, Jane.

Okay, one second, let me just. Yeah. Oh, here we go. Australian property monitors. Information. Ooh. Predictions of how these will rise this year. Okay, good. So there's the data there. Good. Excellent. Great question. Thanks, Gabrielle. Got two ways to find that information. Now we just have to hang out to autumn and spring, I think.

Yeah. Okay. Just coming back.

Okay, so some more questions. Got any hands up there, John?

Got a few hands up here, Lorraine.

Oh, a favorite of ours. Hey, Lorraine, how are you going?

Hello, Jane. John.

Hey, Lorraine. How you going?

Hello. Hello. Good, thank you.

Now, did I see that you've had some developments in your purchasing in the Facebook page?

Yes, we were. Yep. We're very lucky. We've. It's all underway. Property will be cooling off tomorrow and.

Yeah, great.

It's all happening.

Congratulations.

We're very happy.

And luck had nothing to do with it. You know that, don't you?

No luck.

No luck. There's hard work finding the right property. So you were thinking about flipping this, I think last time we spoke. We are. Yep. So tell us, what's your question?

I was just. Just out of interest, wondering how do you work out whether you should stage the house or not? Stage it when you sell it? Like, how, you know, is it worth it? Is it not worth it?

Well, I've only ever sold one property, and it's happened in the last three months. But John has done this as a flipper many times, and we've got a very, very strong opinion about this, haven't we, John?

Yeah. If. If it's worth it, if there's the. If it's a viable renovation, I. E. There's the. The spread of values in the street and, you know, the renovation cost doesn't eat into any potential profit that you want to make, then it would automatically qualify for me to be staged. Just about every time I would say, I can really. I struggle to think of a case where I wouldn't stage a property for sale unless I hadn't. Unless it was maybe one that I owned already or there was some other circumstances around it. If I. If I was buying it for the. For the reason of renovating and selling, I would definitely stage it because there's a kind of. People just haven't got an imagination. You need to. You need to provide it and paint the lifestyle. Yeah.

And I think also what type of.

Profit do you reckon.

I was just.

I was just gonna say, what type of profit do you think you get from it? Like, if you spent like, 3,000 on staging, how much more do you expect to get?

It's hard.

It's hard.

There's that thing where you. If you think about every single little decision you make in that renovation, like, you know, how much does it.

The tap type.

The. Yeah, the tap from square to round. How much difference does that make? Or how much difference does a window. Yeah, the kitchen. So they're all. Yeah, they're all incremental and. And the whole is greater than some of the parts. So it's. To me, it's one of the big ones. It's kind of staging, painting, street appeal. Yep, street appeal. They're just the really big. And there's plenty of other 1 percenters that you can argue about, like, for instance, the. The. The shower screen or the type of taps or the type of tiles or whatever, but the staging never gets off my list. But can I. Can I quantify it? No, not really.

And you talk to valuers and they say, you know, staging doesn't affect our decision, but there is a subconscious kind of connection that you want people to make with a property. And you know yourself when you're doing inspections and that, you know, you're walking through that, you got that clunk, clunk, clunk, sound of your feet walking on the, the bare boards. Everything echoes. You kind of looking at the area going, oh, gosh, could you fit a double bed in here? I don't know. And you walk really quickly through the rooms and just next time you do an inspection, go to one that's furnished and you're taking the time in the rooms mentally, you spend more time there. And I think it's one of those, as John said, it's hard to put a number on it, but a property that has been finished well, presents well, sells well. I've got friends that have begged, borrowed and stolen down to the fancy towels from friends and family to stage their property and they've had it on the market unstaged and then got a bit desperate, borrowed all the furniture for a weekend and staged it. And who knows whether it was the staging or not, but it has sold really quickly and I think that it's an investment. If you're going to put all the front effort in, don't give up when you're going for that end run because that's where the cash is as well.

Yeah. And it's easy to fall into the trap of, oh, well, people can see through. It's only they can. They know it's higher furniture or whatever, but people buy an emotion. They don't. People don't buy rationally and.

And flipping is all about selling to an owner occupier and getting that emotional connection.

Emotional connection.

Now, John, have you seen the. Oh, God, what do you call it? Photoshop staging.

Yeah. I think that's brilliant too. Yep. And I mean we've just sold off the plan and done the whole artistic impressions and so on, which cost, you know, hideous amounts of money.

More money than an actual staging.

Yeah, absolutely. Probably the same as staging, but. And it was the difference between someone looking at a two dimensional plan or looking at an artistic impression of the lounge room and the facade and so on. So, yeah, I think it makes a huge difference. Presentation. Yeah, absolutely.

I just also wanted to say I took on board what you all said about the garage.

Yeah.

And we're no longer converting the garage. We have. There is enough room. The laundry is quite huge. Like it's 2.7 by 2.8 or something. Well, not huge, but it's big enough for bedrooms. So we're converting that.

Fabulous. And, and I'm glad. And this is for those people who, you know, go back to the back catalog, have a chat to Lorraine. But We've been on the. On the journey with Lorraine in locating this flipping potential property with your daughter, isn't it?

Yes.

Yep. And so a real. A real family affair here and. Yeah. So fabulous. And we had some concerns last call about, you know, that extra bedroom. Obviously, if you can create another bedroom under the roof line, it's great. But that garage conversions can sometimes run into council problems and problems when you're trying to get it revalued. So, you know. And it did.

It did.

Oh, good. Okay. Well, not good, but okay. I'm glad we didn't lie to you.

Yeah, no, I did give you a bump, Steve.

I had to rethink the whole thing.

Yeah, well, you did.

I didn't give up.

And that's the thing about being a renovator. Often what happens in your inspections, you're looking for the problems because you can see the opportunity online, but inspections are looking for the problems and dealing with them quickly and innovatively when you're actually in a renovation. So, you know, it's a good detective work and, and thinking strategically about not. Not taking that on the chin and going, yeah, whatever. Can't do this, you know, now I've got a dog. But. But looking at that little twist that you've pulled off. So please, we would love to see, maybe, maybe we can get your before and afters onto the Facebook page.

There will be.

Excellent. Can't wait. All the best with the cooling off.

Thanks, guys.

Coming off tomorrow. Bye.

See ya. All right, a couple more. Hands up. Let's have a look. Oh, it disappeared.

I think it's just.

Oh, there we go.

Margaret, we got Margaret. We're unmuting your line. Margaret.

Bit of a delay tonight.

Hello, can you hear me?

Yeah, we've got you. How are you?

That's great because we've had several times before when it wasn't that easy. Hi, Jane. Hi, John. Couldn't make it to your seminar last night. I was very sad, but I'm delighted to hear that you.

I think the thousand emails we had asking for a recording probably convinced us that we. We should make one.

Ah, you're brilliant. That's great. Anyway, so we spoke before about a house that I bought in Bono, and you very kindly did an analysis and staved me off from spending heaps of money on it. So I'm very glad you did because I've had lots of real estate people come in and give me a sort of a broad, broad ballpark figure, and it was actually less than I thought it would be. So that was really good. I thought I'd do that. Like you said before, even with the statistics that I researched, the actual, you know, the real estate agents who are experts in the area I think gave me a much more realistic figure. So that was really good that you said to do that. And so I think what I've decided to do now is to just rent it out to students and just find another home for us as a family home because it's on the bus route for school. My nephew Josh has just come to live with us. He's a uni student and he's raving about how handy it is.

Ah, excellent. So maybe Josh has got some mates.

Yeah, well, maybe so. I think I'll be able to do a positive cash flow on that and I'll start looking for somewhere else for us to park ourselves for a while. But interestingly, I went up to the Brisbane to Matt Jones Business Property networking group on Tuesday night which was fantastic. And so I'm just trying to get my sort of team together. An accountant and you know, all the various, you know, brokers and what have you that we're advised to do before we start moving. And it was interesting because a guy from what reality? He's, he's. He operates within the sort of Brisbane area and he was saying there's been no movement at all in Brisbane over the last number of years. And the. He doesn't see that it's to going to go anywhere at all. It's very conflicting to what I'm hearing from everyone else. And I just. So that that was, that was just would like to hear your thoughts on that. The other last thing is have you thoughts on splitters versus doing a Renault? Because I'm a single mom and so I'm like actually right now I'm walking around the soccer field while my son.

I was wondering where you were.

We could hear the yelling. I thought it was a coach.

I'm a multitasker mother.

You gotta be.

So yes, we're doing the webinars, the walking and the sports all in the.

One go for those people who say you can't have it all.

Anyway. So I'm just wondering because I've recently I've done a little bit of looking at splitters and I've had, you know, chats with three or four couples they were who've done a splitter recently. And there's a part of me thinking that might be an easier thing for me to. To do than to actually go and renovate a house. Although I've met Some good builders now and I've got a good electrician. And you know, I've got a bit of a team happening. But, you know, I'm just wondering if you could shed some light on what you think.

Oh, gosh. Okay.

Spirits or Brisbane?

How about I do Brisbane?

I. I have to say, see a multitasker and multi. Questions.

Yeah, I was going to say you managed to, To. To put two completely unrelated questions in there that sound related somehow. So look, I think I said to my sister 18 months ago when she said, where should I buy next? I said, I don't have time. Here's a number of really good buyer's agent in Brisbane and she'll look after you buy in Brisbane within 8Ks the CBD, which she did. And now every time, well, not every time, but once every six months, she says to me, so about Brisbane.

I'm.

Like, well, you know how it lags. Sydney. And Sydney's still booming. Sydney's still booming.

And you know, you're looking at 18 months. Yeah.

And yeah, you are looking Asian. And I keep reading about, you know, the, oh, the doom and gloom of Sydney and what, 83 clearance last weekend. Yeah. You know, so maybe it is a.

Very good time for me to be looking at Brisbane then.

Well, if you look at Ripe House, it was all Brisbane.

Yeah.

And we might just pull up that report if you want to have a look because we'll show you some of those areas, but the. Which may not be consistent of where you want to live. So first of all, let me just address the. The previous question for those people who haven't listened to the back catalogue. And Margaret, I'm going to take some.

You can call me Mags. Actually, my parents used to call me Margaret and they were very mad at me. You're making me nervous calling me Margaret.

Yes.

You're in trouble.

Good.

Call me Maggie.

Maggie. There you go. I gotcha. Okay, so the thing is, I'm glad that we gave you enough questions for you to go and question that decision about spending the money on renovation, because as we often say, strategic renovation allows you to make a profit. But there's a lot of properties that you can renovate that you can't make a profit on. So the fact that you went back and checked those numbers and have decided to move on, I just have to congratulate you because often people renovate and go, didn't make any money. They're full of it. And the reality is they probably just don't have the right property in the right area to do it so we know that. So good on you. And once again, like Lorraine taking that opportunity and saying, what can I do? It's on the bus route. There's students potentially even furnishing the rooms if there's an opportunity to add more value in improving that rent.

Maybe putting a vending machine in and just cleaning up the garage area and making that into like a pool room type of thing.

Hey, we want them to study a little bit, max. Then again, you've got the strategy there, which is, you know, make them fail uni so they can pay rent for the Next, the next 10 years whilst they go back. So, you know, nice twist on that.

No, the mothers, their mothers will be after me if I do that.

Exactly. So first of all, get a rental agent in. Do not, do not manage this yourself. But yeah, I would suggest maybe not a pool room to, to, to be.

Honest, I think I was joking with that one.

I. I don't know. I don't know. It sounds like a good idea. How do we, how we get tenants? The, the other thing is that in actual fact, tonight Jacob from Ripe House is doing a webinar as well, because we both discussed having to record each other's webinars and listen, listen to them. He's actually interviewing a guy who's got 43 houses in this Moreton Bay Council and he suggested that he's a photographic memory kind of person and has very interesting information. So if you're on his, his newsletter.

Where does he meet all these people?

They talk to him on the right House chat and they go, I've got a question for you. And he jumps on and answers and starts chatting. And as we know, that takes a lot of time. But where am I going with this? So with Brisbane first and foremost, this may not be consistent where your family needs to live. So, you know, you've got kids playing soccer and, you know, you probably don't want to uproot them. But this Moreton Bay Council area has so many of this. You know, this is this, this big green kind of. This is what he talks about. This big green, this compulsure south and the sweet spots, etc and Morayfield, which we've profiled before. I did article in December Money magazine on. So, you know, there's, there's some really interesting, some areas that have been pinpointed that you might consider. I shouldn't give away everything here. So, you know, so that's, so that's a thing. But you've got. I think you still do have that affordability issue that is, you know, all of a sudden people say the median house price in Sydney is a million dollars. There's lifestyle, there's sun, you know, beautiful one day, perfect the next. Queensland. Yeah. So there is those opportunities too. And the economists I'm listening to are talking about it has been the slow burn. The real estate agents in the area are still talking it down for whatever reason. And a lot of the buyer's agents that buy nationally have moved on for Brisbane because they realise that they've bought for their clients there over the last 18 months and they've got the growth phase ahead of them. So I still think there's some opportunity to purchase. You know, I've got here a report on Brisbane I don't have. Let me just have a look at if it's got some overall returns. There's nothing really exciting here that I'm going to show you. But essentially, I guess the thing is that you have to make your own decision about where you do invest. And if you're going to be investing for a home, then put your investor hat on and buy it strategically and buy in the area that fits your lifestyle and your family needs, but also has those growth drivers. Because I think that's really important. And I'll flip to John on the splitting if he wants to take that. But I think that just my opinion on the splitting and being.

Well, you've seen a lot of that in your mortgage.

But just with the way that.

Often.

Here's my big analysis on this. Often there's an assumption that splitting can create value and I've pulled up information previously. So have you seen me use the SQM website and just look at what. Yes, I have. So if you go to sqmresearch.com and they have the sales price for the area, it shows you dots the size of the blocks and I kind of get an indication if you're talking about an 800 square meter block. If no one's buying 400 square meters. Blocks don't split basically. And you know, you're looking often you're looking to 20 to 30,000 in costs for splitting a block as well, depending on the council and the requirements and easements, blah, blah, blah, blah, blah. But there are costs and we have a lot of students in the Ultimate Guide of Renovation who are doing that twist on the renovation. They're renovating the front property, increasing the rent to help subsidize that renovation with the equity. They pull out the back to then split and then selling the block at the back rather than developing it. So the money, and John will talk to this. A lot of money is in that part of the process. But if I had 30,000, if it was only cost me 30,000 to split, and there were some questions about the on sale value of a smaller block versus $30,000 on Bang for your buck, kitchen, bathroom, painting, street appeal, staging or whatever it is for the property itself, I'd be tending to renovation. And if you're not inclined to do it yourself because you are busy, you've got two options on that. Buying the property with the potential to renovate and not renovating it yet, and renovating it when it suits you or when you move out, but having the potential to renovate. Or secondly, get a project manager in and often for 10% of the value of the, of the actual renovation, you could, for $3,000, you can have someone take that pain from you. And having, you know, having done that myself to some degree last year with two of my, you know, little properties that needed a bit of a revamp. You know, sometimes you, you have to be strategic about where you put your time. And as a single mum, and I imagine working single mum, you've got a lot of things to juggle. So just be very, very good at buying the right property in the right area and giving yourself permission not to have to renovate it. John splitting.

Okay, that's a good idea. Is there kind of a ballpark percentage? Is that a percentage of the eventual value that you sell for the profit? The percentage you would pay that you.

Oh, this is to hire someone to do that.

It's usually like a 10% project management fee of the value of the renovation.

Maggie, you can also hire people to do the feasibility, which is a good idea. And particularly because you may actually find that I think most cases the renovation and pulling the equity out and increasing the rent would be a good thing. In some cases you might find when doing a feasibility that it's more attractive to a developer to come along and just knock the front property over, for instance, if you were selling it subdivided. So it's good to know that, to have all your options and make sure that you're looking at it from every angle. The temptation is always to look at an unrenovated house and just assume it needs renovation. But it's not necessarily the best, the best strategy.

Archie center does feasibilities.

Yeah, and there's some private ones as well. There's one in the, in the western suburbs that I learned about on the weekend at the workshop. Actually, I think they're called.

Okay.

Western Suburbs. Melbourne.

Yeah, Western service.

Matt Jones. He's good guy. He'll tell you.

Yeah, no, Matt's great. Yeah, I'll contact Matt and ask him. I didn't even imagine that there would be someone who would do the extra business.

Oh, there's people who do everything.

Yeah, absolutely.

Yeah.

It's so great to be hooked up with you guys.

Yeah, the people I was talking to on the weekend and they. It was less than. It's about $1,500 or something. It was pretty good. And they actually gave them an idea of how many they could put on the block. In their case, it was three townhouses. Townhouses, yeah. So I thought that was great. But there's definitely a market. Well, there's a market. Whether it's. There's a market in your suburb, I'm not sure. But yeah, there's a whole lot of developers that don't want to go through the process of buying with plans, buying a block of land and then getting the property. And there's a bunch of reasons for that. One is it's difficult to finance because when you get project finance, it's normally over, let's say, you know, 12 or 18 months. And if you need to. So it's got a defined endpoint there. And if they need to do an extension, they do an extension, as they did to us with our job. That's gone over 12 months now. But for the most part, if you're going through council, there's a lot of variables in there. You don't know whether that's going to take, you know, six months to get through council. Eight months, a year, year and a half. The place that we bought took three years to get through council before they actually got their building approval. So developers will pay a premium for that. So they can get their crews, they can work with the same crews and just move them on to the next project and the next project. So typically what we. We see here is 100 to 200 grand easily, just for that permit price kind of thing.

Right. Okay. Yeah. I've just met a couple of the senior planners in the Gold Coast. I'm just really trying to network right now to know as many people as possible. And so I had a great chat with one of the senior planners up here, and I think, you know, if I was thinking about doing something, I would definitely approach her first to see if she thinks that'll be a goer before. Put something in.

Yeah, that's great.

Rather than waste all the time.

Yeah. The other thing I like if you, if you're going to. If you're thinking about and getting plans done is finding the architects or drafts people that have done the. Are doing those kind of developments in the area. So you can find that out through for instance council development applications and, and even driving around. Do they call them ward meetings in.

Yeah.

All around the country. I'm not sure they call them ward meetings in Victoria. But yeah, you can find out the, the ones that are doing the type of developments that are. And if, if a lot of that particular type of development is going on then you can probably make a first assumption that, that it's viable just by the amount that are happening. And then you want a kind of architect or draftee that's doing that type of development. Save you some time or a learning curve with some guy that's doing it for the first time.

Yeah, he's got more time than I have, obviously.

Yeah.

Irishman. All right, thank you so much for your time. Really appreciate it.

All the best, Max.

Soccer's almost done now.

Score. Goal. Now someone's asked me to put that. Mark's asked me to put the. The property guide in. Into the chat.

If you put it in here.

No, that says to us. So would you mind copying it somewhere so everyone can see it? Yep. Okay, so this is that domain property guide. I don't know how to use a Mac.

Yeah, here we go. I thought you had it in the. There you go. I reckon you did put it in the right spot. There we go.

Okay, can everyone see that? That's that domain. Is that what you're after, Mark?

Yep, there we go.

And you asked about reliable property manager. So you just. Project manager. So you've just answered that question.

Let's try and see if we can unmute Dimitri. Dimitri, you're there.

Hi guys.

Hey.

Hey. Well, actually my question is a little bit related to the Brisbane thing and the reason being is I'm in a position to make a next purchase and I'm now tossing between a house within the 10k radius of Brisbane or I could get a 2 bedroom unit within the same radius in Sydney for roughly the same price. I'm trying to work out which one should I go for given obviously the different. Different places on the property clock at the moment for those two cities. One second maybe just long term perspectives. And third, given the fact, let's say that these two properties are the same level of investment grade properties, just one being a unit, the other one being a house. The reason why if you'd asked me half A year ago or maybe a year ago, I'd be strongly suggesting to myself even like Brisbane, but been recently a little bit disappointed. I had a unit there for a year and a half and hasn't moved really. So I'm not. Yeah, I guess you see where I'm coming from.

Yep, I got it. Don't sell the one in Brisbane. Okay. Sometimes we just have to be a little bit patient. Hang on to it. It's a really good question. And when you put it in context of they're both the same investment grade and it's a house in Brisbane or within 10Ks the CBD, can you give me a purchase price?

700.

Yep.

Okay. Or two bedroom unit. Okay. I'm not giving you advice here. I'm just going to share my thinking on this and that is if I look at the property clock and I see the sustained, how am I going to surprise the sustained growth that Sydney has had and the shortening between the, you know, boom to quiet period, back to boom that Sydney experiences and knowing that it leads the market in Australia in that property clock. And we're, I mean everyone's predicting that it's, it's coming off and it will come off. You know, things like, like what we've seen the insane 24% growth in some of the suburbs that I've got properties in is not going to be the same next year. So we know that's going to come off. But if you think about the clock and you're a long term investor, Dimitri, so you're talking about buying and holding and you're looking to that big picture rather than the short term gains, then Sydney's going to come back sooner and arguably you could have a bit of growth in Brisbane in the next 18 months whilst it has that growth period off the back of Sydney. But remember, it's off the back of Sydney. Sydney is driving this. Sydney's price point for houses is this insane but the price point for units, not so bad. So you know, $700,000 would get you in a good quality two bedroom unit that, you know, typical and once again typical property for the market. So you want to make sure that you're not buying the studios or the one bedrooms when everyone wants two bedrooms. And, and I wouldn't be looking at anything less than a two bedroom unit, but a quality unit in an area that has growth potential. And it might be, you know, the, the ripple effect along Parramatta Road out towards Canterbury, it might be the, you know, light rail out to the University of New South Wales. It Might be, you know, new train connections out northern Sydney. So you know, wherever you do your dot map or your analysis of where that growth potential is, you know you can and as a, you know, as a, you know, someone who has access to those suburb reports, make sure you request them. But you know, defining that, you know I would always invest my money in the best place that I could get value for. So if you're saying house in 10ks of CBD Brisbane and fit for market, same demographic etc. Investment grade. So that's what investment grade means to me. The rental market's over 80%, there's a decent yield or that two bedroom older style unit in no more than, you know, four stories, no lifts, no great strata fees, not near brand new huge developments where you're going to have 1500 units come on the market in the next you know, 12 months and you know people can't complete in the sale because the APRA changes means that they couldn't afford it the getting the loan now that things have changed since they've, they've signed the contract. So these properties are going to be on the market cheap and they're going to drive potentially your market down or affect your rental market. So we're looking at good quality older style units that you can add value, manufacture, add value in a growth area. I personally, if I had the choice and had that much money I would be considering Sydney unit. Having said that long term growth over the last 20 years Melbourne has outperformed Sydney.

Does it mean that Sydney still has room to catch up? Because the reason I'm asking is because if we look at purely supply demand, Sydney still has the biggest issue as in supply demand.

So what do you mean it has the biggest issue has oversupply?

No, it has a bigger shortage of dwellings compared to three, the three of those cities. Right.

Well if you look at, I think, you know, when I look at some of the economic reports and let me just, I'm going to try to justify this with statistics as I usually do but I'm just pulling up one of these reports now. What have I got here Brisbane? I just want to see if I've got the right report here. So I'm looking at 10 year growth which is not what I'm after. So let me just have a look at New South Wales because a lot of the market commentary and in one of those Victorian reports that we just had there, John, the report, was it the one with the economic information in the beginning? I think it's the predictions report. If you Want to pull that up? There's a supply and demand conversation that goes on and there's a lot of oversupply. However it is a lot of that is in the unit market. And you know, if you're reading the kind of demographic prediction information, a lot of that also is talking about Melbourne becoming the biggest population by 2050. So we really have that driver of population and still to some degree affordability and the proven 20 years worth of growth. So, you know, I wouldn't, I wouldn't necessarily say that. I would be. I'd be saying that Sydney has the supply and demand because just based on some of these numbers, I just want to try to see if I can pull this up. Here we go. So if you just go down a bit further, John.

Okay.

This is where we hope everyone has epileptic fits when we. Your mouse is a whole lot nicer than mine. I might come and steal it. I want to quest for a good mouse at the moment. Okay.

I recommend logitech.

Do you. There you go. I've got HP housing surplus estimate. So this was for Victoria. So 23 to 27,000 estimate of new dwellings needed per annum is measured based on ABS data and assumes household formation of 2.0. You know, we're not certain, blah, blah, blah. So what I've been watching over the last couple of years is this has been in a deficit and I've got here. I don't know if you want to swap to my screen. I've got here the New South Wales market commentary. So let me just show this. So I've got here the New South Wales market commentary and that's showing this affordability. Sorry, this surplus here in New south Wales of 13 to 17,000. Dimitri, just remind me, you're a Diamond Investors Choice client, aren't you?

Yes.

Okay, go into the Investors Choice login page for members and we update all the quarterly Residex market reports here. So the market report came out last week. So this is about to be updated. This was actually updated today. These locals, local government area reports. So I've just gone in there and pulled out New South Wales. You can go in here and pull out your Queensland report as well.

Okay.

And this is where you'll find that information. So a lot of this, as I said, is around new units and a lot of the development that has gone on in the the heydays. It's a pretty image there. Let's gradually watch our NBN in progress here. But and it's important not to make assumptions about that. So what I would say you asked the question Brisbane house long term over unit in Sydney. I think we're going to see more activity around the unit market because of the affordability issues that we've had. Population. I think there's a long term population drive towards Melbourne and you know we're going to have that flow on effect. As I said, Sydney leads the market 18 months behind it is Brisbane but six to nine months behind it is Melbourne so it actually pulls through quicker. And if you're talking, you know, if you had said to me a unit or house in, in Brisbane I would have been saying a house in Brisbane. But you know that's, that wasn't the question. The, the question and his housing surplus for Queensland. So you know we've now got surpluses that are happening and two years ago I was looking at these reports and none of them were in surplus. So you know, I guess it's just about what the drivers are of the population. You know if we were talking about buying a unit in the 10Ks within CBD to a house in the outer suburbs of Sydney for instance I'd be talking about the fact that the ripple effect and the capital growth usually goes from the inside out. And remember Sydney is a bit unique because Parramatta is almost another.

City in itself.

Yeah, CBD that you do that kind of pricing out from but it goes out to the outer suburbs and then it comes in. So those, those inner suburbs have a longer period within that growth cycle. So I'm talking historically who knows what's going to happen in the future. But I hope that kind of help gives you a few areas that you can go to and get that information from.

Basically if I had to recap basically what you're saying you believe a quality two bedroom asset in a quality suburb in Sydney would be a better investment long term rather than a quality house and a quality suburb in visible.

I think long term we've definitely seen that over the last 20 years over 8% growth in Melbourne, over 7% growth in Sydney and lagging behind is Brisbane. So if we take the long term growth of what the properties have done or those markets have done in the past and project it further then yes, I think that Brisbane's not going to have the return that you're going to potentially get in Sydney. If I look at houses over units I would rather have land because land goes up in value and buildings depreciate. Having said that, if I'm looking at a suburb in Brisbane where there's predicted growth that I'm seeing for a Lot of the suburbs in Brisbane over the next five and eight years of 3 to 4% and I'm looking at suburbs in Sydney that have predicted growth of 6 to 7%. I know if I was buying for the next 10 years where I would rather have my money, I have a same price point Potentially that 700,000. One going up by 3%, one going up by 6%.

To be a little bit. Actually I'll let you go to be a little bit more precise in terms of the suburbs that I'm comparing is it's the elderly in Brisbane. That's where I've got a couple of options on the house side of things versus stuff like two bedroom units in Dulwich Hill or Summer Hill or Kingsford or even DY in Sydney.

Look as a Diamond member once again ask for those suburb reports because we'll send those through which will give you the best guess of potential growth. That Anderlee area that you mentioned and I did a dot map quick one in Brisbane and I was interested in seeing the pricing pressure around that area. So that was the one Inaugura as well I think was next to. It was two kind of areas that I went. This is interesting. If I was buying in Brisbane I'd do a bit more research there. Big disclaimer. I've got a house and a unit in Kingsford as you've probably seen in a lot of the tutorials that I do. And you know, my gosh, I can't remember now. I think I bought the. I put an insanely rude offer in on the unit. I think it was 4, 3 10. I was on the market for 420 and went to 360 and offered 310 and it's now worth well over 700. And I bought the house for 625 and it's now. Well the median in that area is 1.8 million. So you know, I know there has been a lot of growth there. In actual fact I think you know they're more expensive than some of the neighboring suburbs. But that rail line is going to do a lot for that area as well. It has had some growth. I do love, I do love the fundamentals around Dulwich Hill and had a lady actually ring me just last week who said thank you for putting me onto this two years ago because now my family has a, a lot of equity behind them and you know, single mum starting out again. So you know that area has had a lot of growth. They're, they're close to the city people. They're good commutable distances, you know, good sized properties. I'd suggest you get those prediction reports and jump in and have a bit more look at it.

Good basis for some more research.

Hope that helps, Dimitri.

Definitely. I've already requested Diana to supply those.

So while we speak, we'll get them to you tomorrow.

Well done.

Okay, thanks for coming. Thanks for the question. Really appreciate it.

Okay, well, I reckon that is us, Jane. No more questions in chat. No more hands up. I was just going to put.

Had a couple of questions everyone with that last one.

Yeah, a couple of questions about the next workshop. Again, I'm just going to put. See if this works a message in the, in the chat here and send that through to send the entire audience. There we go. Yep. So next hotspot, email Jane at the next workshop. If, if we get the numbers then we might be able to go to Brizzy and Sydney. Jane@yourpropertysuccessclub.com and I said there, if you put in the subject line hotspot workshop and then you know your state, Queensland, New South Wales, we'll send you the.

Price and the details and put you on a wait list.

And if we get the numbers, we'll let you know.

I'll have to go and negotiate with my family time away. Yeah. So all good. Oh, gosh, it's always exciting. You know what I love about these calls?

What's that?

We never know what people are going to tell us or what they're going to ask. And sometimes you've got us on the hop, but we're here to add value. And one of the funny things is we know that, gosh, we have hundreds register for this call and often we talk to people and they say, I feel like I know you because I've just listened to 45 hours of you guys and they've gone through, through and listen to and that. You do that, don't you? You always jump in a course and listen to the backlog of all the past calls.

I think that's great getting. Yeah. Because that's where you really learn to hear the practical questions and everything.

Yep.

Yeah. So anyhow, I encourage you guys just to, if you are new, jump in and listen to the rest. If you're listening to this recorded, never fear, you're with the majority. And please send us the questions as we suggested earlier. 1300, blah, blah. I can never remember that number but, well, no one calls us on it. 113 76, triple 1 9. Or obviously send us the questions as well. And you know, via email and we'll get onto it. And yeah, look, I really encourage those people to. If you are on live, watch out tomorrow for that webinar recording that we had of that property challenge last night, because that was just insanely amazing. We walked away from that going, how much value was that?

That's really great examples.

Another sleepless night of excitement and adrenaline. But, yeah, all very good, guys. As I said, you know, Ultimate Guided Renovation students, especially old ones, we are opening enrollments in the next couple of weeks for the new course. We're going to be welcoming in new students. And the really exciting thing about this, this is that many of our Ultimate Guided Renovation students tell us that with the lifetime access, they. They often go through the modules again in. In conjunction with the new students, and they get so much out of it. That Renovator Network page, please jump in there and, you know, you. You'll see the insane generosity of the community and the sharing and information. We look forward to seeing Lorraine's before and after photos in there. But, you know, we're really excited about. Tell your friends about the course. You know, we're. We're a funny little secret kept amongst a few. So we'd love you to tell other people if you see us posting about the Ultimate Guide to Renovation and the video series in the next. Well, starting next week, we would love you guys to.

Tracy says. Who are you calling old ones?

I met more experienced alumni, Tracy, of the. Of the tug. Tug, which is a terrible acronym, but the Ultimate Guide to Renovation Students and those we fondly love. But, yeah. So please, please, please, please spread the word, because as you saw and I saw for the first time, there's wonderful testimonials. We're really here to help you guys and our community, and we're dedicated to give the best that we can be to contribute to your property success. So all the best.

One last question. Hang on.

We had someone punch in.

Yep. What are the Facebook page references you mentioned earlier tonight?

So we have private Facebook pages for the students of the Ultimate Guide to Renovation called the Renovator Network. So it's a restricted access.

Yes. And the. Your Property Success club, too, which is for people in your Property Success Club.

Exactly.

But the public pages, if you just want to do a search in Facebook for Ultimate Guide to Renovation or your Property, Property Success or Investors Choice Mortgages, they'll come up pretty quickly.

And you'll be able to access those three videos that I mentioned with Chris Richardson from Deloitte's. So that's Facebook Investors choice mortgages, Facebook Slat Slash Ultimate Guide to renovation. Facebook, your property success. So there you go.

That's it.

So. And make sure you catch the series next week. And make sure I don't get hit by a drone. All the best guys have a great February or the end of it. And happy birthday, Mum. See you next time.

See ya.

It.