Your Property Success Mentor Call July 29-07-2021

Sam. Hello everyone and welcome to July. Oh my gosh, what an amazing month it has been so far. And I trust all of you who are still in lockdown in Sydney and New South Wales that you're doing well and our sympathies go out to you. Being in lockdown for so many months last year in Melbourne, I know exactly how you feel. And Melbourne and Adelaide, I'm so glad we get to celebrate, celebrate our own Freedom Day. So if you are here live watching now, please just let me know that I'm coming through live and strong and that you are actually hearing us and getting us so that I can make sure that I can proceed without not creating any problem for you. And for those of you who are watching on replay, I hope that you have had a good month as well and I hope that I serve you properly today. So if you do have any questions, please let me know, please, you know, just type them into the chat below this live and we will get to them. I know that we've got a few new people who are joining the community this month and a very, very big welcome to you. A lot of people are getting stuck into the Location Masterclass and it's fabulous to see so many people doing that and I'm really, you know, taking the methodology of going through the incremental work one at a time in a really great way. So as always, you know, if you're really keen to participate and be here and contribute, you're more than welcome to. I see Andrew has actually clicked on the link, so maybe Andrea, if you want to let us know if you wanted to come on screen and ask a question, live through the belive mechanism or you just click the link and you're happy to sit there and consider what's going on. So guys, please let me know what you're up to and where you are, where you potentially are coming in from so that I can make sure that we greet you in the best way possible. Now for those of you that have been here before, you know the drill. You are more than welcome to ask questions or send questions through. And every month I get online and answer them live here in the monthly calls. If you go back through, you can actually, if you're in the your property Success club or location Masterclass, there's eight years of monthly calls where John and I have answered everyone's question and we know that questions come up time and time again that are very, very similar. But I do need to remind you the big disclaimer which is, you know, we're not financial planners or real estate agents or accountants. We can't give specific advice. We can guide you and use, you know, our specialty and information and experience to give you some ideas of how you can, you know, go about, you know, creating your own property portfolio, financial freedom, and live the life that you want to do what you want, when you want, with whom you want, and the ability to say no, which is always nice, too. Now, look, it's been a really, really big month this month. I have had a couple of questions through that I would like to share with you so that we can kick this off and get going straight away. And I think it's really important when we kind of look at the opportunities that we have around the month that we actually see, you know, where the. Where the changes that have occurred, you know, what has brought about those impacts on the property market. I have to say I've kind of stopped reading, you know, the five to ten newsletters that I get a day about property because although there was a real concern, March, April, May through to about September last year, now I know my mentoring students and mortgage clients have been riding that growth wave and look forward to continuing riding it. But I think it's really important to go through and have a look at some of the headwinds that could impact our property investment decisions and look at some of the tailwinds, which I'm glad to say there's a lot more of those than the headwinds. So let me just shared this with you so that we can kick off today. And, and I can really serve you with, I guess, some of the things that we've got going on. Now. I have had a question through from T.K. who is new to the group, and welcome, T.K. it's great to see you here. And he is really getting involved in the dot mapping exercise and he's got a really good question. And for those of you who are doing the dot map exercises, I. There's always a lot of questions. If you go into the Facebook group, you'll actually find a whole section on. It's called Units these days. I think I can actually even show you what that looks like. I might try a little later on to show you what that looks like. But, you know, in the. Actually, it's called guides these days. And if I just bring this over, you should be able to see it. You know, just up here we've got guides. And so here's an entire section here that is a discussion about, you know, the different Facebook, the different dot maps. If you Go down. There's a whole, you know, question and answer about suburb selector software. You know, I also run a lot of information there. Let me know if you can't hear me information there as well regarding, you know, the actual use the Suburb Selector software which you'll find in Location Masterclass and module 2 and 3 of the ultimate Guide to Renovation. Conversations around staging. As I said, you know, huge amount there of the past Q and A calls that we have hosted here on Facebook. Lots of reports and resources that help people property case studies, people have shared, you know, their numbers about, you know, their renovations, etc. And what they've done. Some handy information, feedback, reno tips, blah, blah. Now heaps of information there that I just wanted to point you out too. So those people who are doing dot maps and they want to know what increments to use or, you know, where do I get them maps, what do I do? There's so many things that have been covered off in, in that group. So please jump in there and have a look. But TK asked this question. He says, look, you know, I'm doing some radiuses around Newcastle. If you're considering investing there, what kind of radius would you look at when you're actually considering what to for instance, put into the Suburb Selector software? Now this is a really good question because, you know, what it does is it allows you to understand the focus of where you would be putting your kind of attention. Now if I go into the Location Masterclass, obviously you guys have access to this in the Suburb Selector software and this is really where, you know, if you've done the dot map exercise for the major capital cities, you would potentially then jump into knowing, you know, where the 2% and 1% differences are that you're looking at if you're going to Newcastle, for instance. And we, you know, let's just say that your, you know, price point is $650,000. You're happy to go 30% below that, maybe 10% above it. And here's where you put down, you know, how many kilometers you want to be from the cbd. Now I'm just going to show you one of my digital doc maps here that I share with my mentoring students. But you know, if I'm looking at Newcastle and you'll see this when I do the explanations in the Location Masterclass and Ultimate Guide of Renovation about using the dot maps and doing them, you know, I don't recommend that you would dot map Newcastle Sydney. Fair enough. You know, we're looking at pricing pressure. We're Looking at suburbs and how they push on each other. But when we get to Newcastle and the central coast, we have so many different things that can influence price growth. We can be near the water, we can be near the sea, we can be near the lake. We can be near the. On ramps and exit ramps to the freeway. We could be aligned to the railway. So I wouldn't be doing dot maps associated with this. So I'm just showing you the Newcastle dot map because I think it's really interesting to be able. And he's the legend for those who trying to look quickly or want to pause the video. But I think it's really interesting because it gives us an opportunity to see, you know, where there has been some substantial growth. And as I've said, you know, the legends change. And we've seen, we see the growths, growth around 8% being oranges and reds, over 10%. So we've seen the growth closer to the CBD and moving out. We see some really good growth, et cetera, out here now. So the question that TK has is if I want to invest in Newcastle, how far would I do the. How many kilometers from Newcastle? A bit of a cheat for people who are thinking about potentially being in the central coast or maybe inland of Newcastle or maybe a bit north of Newcastle is put in a huge distance from the cbd. If you did that, you know, you're going to pick up Scone and you're going to pick up, you know, Gosford, etc. But, you know, I think the, the important thing is when we actually are looking at what the potential is for these areas and in particular areas like, like Newcastle, you know, I know down as far as, like Warner's in Charleston, you know, you really are picking up, you know, this, this entire area. And I think that, you know, when I speak to, to people, you know, and they're saying how far. If I was going to invest, how far out would be considered to be the area? It really is up to you. Now, TK, he said, you know, for Sydney, I might do 20km from the CBD in regional. Regional areas. 40km. I'd actually switch that up. You know, if I was actually doing a, you know, assessment of, for instance, the, the area around Newcastle, you know, I would be looking at Newcastle as, you know, potentially that 15 to 20k area. If I was going to go regional and start looking at regional areas such as, you know, truly regional areas like Bendigo, Ballarat, Geelong, I'd only be looking at 10 kilometers, not 40 kilometers. And if I was looking at areas like Sydney, I'd be looking at 40km. So TK, to answer your question, you know, I, if I was looking at investment grade areas in those satellite cities, regional areas such as, you know, Geelong and Newcastle, 10 to 15 kilometers. If I was looking at Sydney, 40 kilometers, you know, Brisbane and, and Melbourne, you know, for instance 20km, Adelaide, you know, 10-15km. So you know, that would be how I would assess those areas. So I hope that serves you with some questions. Now just jumping on, I've had some fantastic feedback from Ali just this morning actually, which is just so nice and I really appreciate getting feedback from people around, you know, what they've done and the success they've had. And as I shared with you in last month, month I had a wonderful email from a mum, that single mum who you know, I assisted way back in 2009 as a mortgage client doing my strategy call and you know, gave her some direction on where she could afford to buy which all of my mortgage clients get a one on one strategy call with me so that we can do that after we know their borrowing capacity and you know, she chose an area spent, you know, just over $750,000, has just sold and made a million dollars that has really set her up for life. And just getting, you know, this email, you know, today from Ali as well, you know we have quite a lot of equity at the moment in our properties by the way, it's all thanks to you. I would never have had the confidence to be where we are now without your knowledge and expertise. So thank you for the bottom of my heart, I just wish I found you 10 years ago. And you know, this guys, is really why, why I do what I do. And, and I just love getting these emails and the feedback from you. I know that we're making differences in people's lives and just by following this, you know, low risk methodology of creating an investment portfolio that allows you to have the financial freedom that you want is truly, you know, the end game for what we are doing here at your property. Success and investors choice mortgages. So thank you and please keep that feedback going because you know, I just love getting that feedback. Okay. So gosh, you know, there's so many things that have been happening in the market and, and, and I think that you know, when we kind of look at where the market is at the moment, it's, it's kind of confusing. You know, obviously we have had the latest lockdowns in Sydney and they're going to continue for another month. Adelaide and Melbourne have bounced back out of lockdown, which is great to see. I know that Brisbane went through three days as well. This is going to be a rolling roller coaster. There you go. There's interesting metaphor for us in the next year until we get the vaccinations up. And respectfully, for all those people who decide not to vaccinate, that is your decision. But it is one of the things that is going to be a necessity in our life to open up our borders, allow us to continue to travel, allow us just to, to get to our interstate families and you know, be able to have those, you know, stage of life kind of celebrations and you know, marking those times with our families. Significant birthdays. You know, I missed out on my 50th, had Domino's Pizza in the backyard with my husband and son. No party. And it looks like, you know, we hope that we can have birthday parties this year but for everyone who's, you know, have had deaths in the family and all of those significant things, you know, our hearts go out to you and it is a horrible situation and you know, we're hoping and sending all our well wishes to people in Sydney and hanging there. Guys, there's only so many jigsaws that you can do but it's probably a good opportunity for those hours that you're saving or not commuting to get in there and do some education and get yourself into the market and be well researched in doing that. Look, you know, information still coming out that the RBA is saying they will not rise rates until 2024, which is really good to, to hear and see. We know from last month, CBA and some of the other lenders are saying it could happen sooner. We are getting a little bit of tightening of some of the credit decisions. CBA's put up their assessment rate a bit. There's you know, as you know, 30,000 first home loan deposit schemes and family guarantees were released on the 1st of July. Investors Choice Mortgages. We've just finished our first settlement for one of our first home loan deposit scheme clients that did get allocated one of those positions, which is really exciting. And that's the 10,000 that were 5% deposit with the government guaranteeing the loan so you don't have to pay mortgage insurance. Another 10,000 for first home loan deposit schemes of new property purchases and another 10,000 of family guarantees which is with a 2% deposit, people who are single parents are able to buy property and it doesn't matter if they are buying a second property and they have had a home in the past. So some really great initiatives that are coming through and we're seeing a lot of inquiries around that from Investors Choice. So it was great to be part of that. So no rate rises until 2024, but we are starting to see some of the fixed prices change. So keep an eye on that. So look, there is some headwinds and these are really great headwinds that, you know, we can see and anticipate. We know that 2020 and 2021 had really knocked us for six and we didn't see it coming. But now in, you know, looking in the situation that we're in right at the moment, we have some opportunities to consider, you know, the things that are going to P and property investing opportunities for the future and just be aware of them. So, you know, I wanted to name and shame some of the things that are happening. Unfortunately, I put the Brisbane Olympics there as a headwind. It's not a headwind, probably an opportunity but you know, we're going to have less population and it's really interesting to have a look at, you know, that 1.1 million people fewer in our population by 2030, that's going to have a significant impact on housing needs. Having said that, consider the fact that our borders have been closed for over a year now and our property prices are still going up. We've had a significant number of our expats come back home looking to buy. We've had a significant number of interest from overseas buyers and overseas buyers looking to move to Australia and they are coming significantly from the US Then Singapore and then China. They're the top three kind of foreign investment things at the moment. Oh, as I said, the pace of the vaccine rollout and you know, we've been really fortunate in Australia. We didn't have to go hard fast in getting that because we were, you know, there was a lot of people, a lot of countries in a lot more pain than we were. But we're seeing the effect of, you know, some of these overseas transmissions that are coming through at the moment and hence the lockdowns and everyone wants to be out of lockdown and be, you know, able to, to live life to get back to the new normal that we're expecting. So we are going to have that there are going to be some lockdown impacts and you know, we have to be prepared for that. I think significant impacts are going to be that we are not going to have that CBD type of activity that we have had over the years. So just be aware and Mindful of that because it is really important to understand that some people are going to be working at home a couple of days a week and there is going to be a slow return to the capital cities that have been through lockdown and I think that will have a large economic effect on those small businesses. But the large corporates, you know, are responding and they have pivoted really well to working from home and I think everyone's now comfortable in technology and doing that. But having just gone through three weeks of, three weeks of school holidays with nowhere to go and then two days back at school and then two weeks of homeschooling, I have to say I understand people's pain in not potentially wanting to be at home and wanting to get back into the office, which is my first day back in the office today. So glad to be here. Look, there is going to be ongoing Chinese trade constrictions as well. I'm just going to change this and hide my video so you can just see the, the picture that I had here around Australians economic activity. So this is when the lockdowns were announced and this is kind of the activity as well. Lockdowns announced, you know, lockdowns announced. So we actually, actually responding better from an economic point of view once those operations lockdowns have been announced. So I think it's, it's an interesting time. But you know, as we know when everyone went down into lockdown we had, you know, the economy essentially stopped and then we had the bounce back and we've had a lot of bounce backs since then with a lot of lockdowns especially if you're from Victoria and you know it's having less and less of an economic out effect. So Chinese trade tensions, this is going to be an ongoing issue. Iron ore is obviously something at the moment that they China requires from us. It's probably one of their only exports they haven't put a sanction on. However, they have just managed to get rid of an Australian mining company out of an African country and purchase a mine there to secure some iron ore for themselves which will take four to five years. But you know the Chinese are in a lot of pain themselves around obviously the COVID 19 the effect of that. So you know, it's something we need mindful of. I'm just going to go into tailwinds before I take some questions and see if anyone's got any questions out there. Tailwinds. So these are some really good things that we need to be aware of. Going to throw the Brisbane Olympics in there. Congratulations Brisbane, you've got 11 years to get ready. It's interesting to see that Brisbane was pretty much the only city that was left standing. And predominantly a lot of the decision from what I understand came down through the fact that Brisbane already had a substantial amount of facilities already in place. And so the economic investment is not going to be as great as a country that was going to start from scratch. And so there's a lot of benefit there. I've been doing a bit of reading around what's been the economic benefits to Sydney and Melbourne, et cetera, post Olympics. And really the activity and the property price surges have been associated with the economic input around the construction phase. And if Brisbane doesn't have that much construction that is necessary, I have to say I'm having my doubts around whether we're going to see a Brisbane price boom associated with that. So I'm still holding out and looking at a lot of people's information around that. But at this stage I've got a question around that. And the other thing is post Olympics we don't see a surge in property prices associated with those suburbs and areas that are linked to the Olympics. So, you know, maybe there is a growth play in the next 10 to 11 years before the Olympics, post Olympics. I'm not saying that kind of confidence coming through. Interesting though to watch. And a lot of experts are going to come out and do a lot of webinars I imagine around this and a lot of articles. So let's just watch this space and we'll pull it all together for you next month and see what the synopsis is. Tailwinds. The government is still committing to their expansionary policy settings. You know, they're printing money, they're putting buying bonds, they're keeping money in the system, cheap money for the banks and major corporates to be able to buy and expand and lend out to us. But to expand their businesses. Low rates have been almost virtually guaranteed to 2024. Watching space on that, I think our economy is bouncing back a lot quicker than anyone seen before. As we discussed last month, the government has kind of pulled back from their 40, 50 year kind of theories around the fact that there's association with unemployment and employment levels and wage growth and hence rising markets and interest rates. I think we've now got a four in front of our unemployment numbers, which is just extraordinary. But I'm not feeling confident that we're going to see associated wage growth which will really give some energy and fund and economic activity into the economy that would really push the rates up. So let's keep watching that. And look, we're doing so well at the moment. Check this out. This is our savings. You know, Australians are saving, you know, more than we've ever saved before. You know, we're really at the point at the moment where we're talking about the fact that households have a lot of money at their disposal and you know, a lot of us, you know, our homes are going up in value, our economic positions going up in value. We have had the jobkeeper and jobseeker numbers, you know, kind of support finishing the end of March, but we're still seeing this real economic optimism. So I think this is a really good news story. You know, we've, we're really in a great financial position. Another tailwind. You know, we've got the lowest figures as a set of unemployment in the last 10 years, which is just fantastic. I think there's probably some secret numbers behind here that show underemployment. You know, is everyone full time employed that we need to be mindful of And I'm looking at at the moment, but keeping a watching brief for you. But you know, just look at these, these unemployment figures. You know, obviously we went really high. There was expectations and of tens and elevens and 12% and we've just come back from it. So resilience. You know, Fortress Australia is doing well and you know, another trade wind, the tailwind. Our trading partners are actually really responding, you know, really quite well. You know, 2020, everyone had a huge hit to the GDP, but look at the response, you know, look how we have kind of come back from this. So these are our most significant trading partners and you know, they're doing really well. This, this data is from Blackstone Liberty Financial, which is now owned by Blackstone. Really great economic reports that they put out. And once again, you know, if I keep looking at what is happening in Melbourne post lockdown, there is a momentum of people who are getting frustrated on not being able to buy. They're, they're looking at properties. Once we come out of lockdown, the real estate agents are busier than they've ever been. And guess what, Spring's on its way as well. And when spring comes, everyone puts their properties on the market is our traditional Australian buy and sell time. And you know, I think there's going to be a lot of pent up action and you know, if Sydney's in lockdown for another month, they're going to come out in spring and I reckon they're going to come out in A big way. So I don't see any downturn in the property demands. I think supply will be an issue and it'll be really great to see that, you know, housing prices once again, you know, validation. Housing prices around the world, you know, they've been through lockdowns, etc. We are seeing, you know, substantial numbers and you know, if we say that 100 is the number that's associated with what the prices were back in 2015, you can see here in 2020, you know, everyone except Canada, anyway, everyone is just bouncing back and we're seeing some substantial price growth that has been going on over that period of time. So you know, housing prices are going up. We see the median prices, these are all dwelling prices. So when you see the median value here it is for houses and units combined, we know that Sydney and Melbourne are both breached the million dollar mark on their median house prices. You know, we just, you know, annually the market is up 13.5%. Give you some context to this. I watched the 10 year long term growth and you know, Melbourne was doing around 6%, Sydney 6.5%, Brisbane 2.5%, Darwin and Perth 0 or less. Adelaide, that 2 to 3%. So when we look at the overall cities and then we look at these annual numbers, this is essentially for some of these cities, the equivalent, like Brisbane there, that's equivalent of 10 years growth in one year. This is substantial stuff. And the predictions are that this is just going to keep going and going. And you know, our property market has now topped, you know, over $8 trillion, which is just extraordinary as the way that Australians are keeping their wealth locked away in the equity in their homes, they can have the opportunity now to release some of that wealth to get into the market and enjoy the next 10 to 15% of growth that is predicted in the next 12 months. And one of the other things I just wanted to touch on is, you know, the latest RP data, CoreLogic report came out and talked about some of the rental increases that are going on at the moment. Now personally does hurt a little bit but you know, with some of my tenants in Sydney, you know, there's the, you know, reduction of 25% of the rent that I've agreed to that allows me to have some land tax benefits. You know, I've got obviously tenants in Melbourne and Sydney and you know, I'm seeing some price rises that are coming through in, in those areas. I've spoken to quite a few clients that being able to put their rents up. And it's interesting just to look at this, to see, you know, some of those regional changes that are coming through with rent increases, which is just amazing, you know, over 16 for some of these areas, Perth and Darwin, you know, those guys, they've been holding on for so long with such sad stories around their property market. So it's fantastic to see them getting, getting positive stuff coming through. What's really interesting though is, you know, when we look at the effect of net overseas migration on the rental values, you know, we can see these, these areas that are taking a huge amount of immigrants and this is ceased and we can see here the rent increases. So you know, as you can see here, those areas that are not exposed to, you know, international migrants coming through and taking up residence, mainly CBDs, Melbourne's and Sydney's are actually seeing the price growth. So you know, a factor around low risk investing. And you know, I'm always looking at making sure there's demand in the area. I measure that by census data and I measure that by vacancy rates and I measure that weekly by going to domain and real estate.com and suburbview.com and looking at what's on the market. And this is something that you really need to take into account and consider. There's something else I just wanted to tip on. You know, the state governments with all of these prior, all of these sales that are going on at the moment are actually making an absolute monster on stamp duty. And I think you're going to probably start seeing some, some conversations that occur around, you know, if stamp duty was set as a percentage of the value of the property back in 2002, you know, it would have been, you know, 10 to $12,000 in Sydney and Melbourne and now it's $40,000. This is significant revenue stream obviously for the state governments, but I think we might actually see some conversation come up around this soon. Just wanted to throw to the Heron Todd White property clock so that you can see it. We've had a couple of, you know, areas that have come off and change bottom of the market brooms moved up to the start of recovery. Darwin from start of recovery to a rising market. We're getting a lot that are moving through this rising market and still going. Some have been called out at the peak already. So interesting to see some of those regional towns come out there. And yep, so Heron, Todd White, fantastic opportunity for you to get in and see what's happening in the market with the people who are out in the market every day. And just a final point here is look, you know, I'm really keen to assist people in, you know, creating wealth and assisting you in your own financial freedom and achieving that. And I love the strategy calls that I get to participate in. Once you've spoken to my mortgage brokings team and work out what the borrowing capacity is that we get on a call and then can strategize where to buy with the money that you have. And you know, just getting the emails through from, you know, Ali and the ones that I get every single week from people who have really started creating that financial freedom by buying the right area is just so satisfying and I just love doing it. So if you want to, you know, have your, your lending assessed or refinance opportunity, looking at equity release, you know, give us a call. Investorschoice.com book a call and start the conversation because we're really keen to be out there and supporting you. So without further ado, I've got a couple of questions coming through. I'm really happy to answer your questions. Please, you know, write them in or let me know how I can help and serve you and yeah, please, please do that. I do have a question here from Jamie, so let's just put this up so that I can read it out to you. Hi Jane, we have a question. We're looking at moving to Scarborough in Queensland. So interesting area. Is it better to buy there or instead, instead rent and buy a rental property in Sydney or Melbourne for long term capital growth. Ooh, very interesting question. So Jamie, I guess this comes down to doing some predictive analysis around where will be the growth in the future and where will you get the best growth. Now as you may recall, I'm not even sure if I can pull this up. Where could I get this from? Let me have a quick look. But in June I put out a report on areas that were coming up on my list to buy in, which I think gave. It gave us an opportunity to. Where did I put that? So clever I can't even remember. But one of the areas that came up in that, that review was Scarborough. And you know, it's around looking at what I looked at in respect to where the growth opportunities were, I was looking at pricing pressure. And for those of you who don't know where Scarborough is, I can pull that up quickly. Let me just go to Queensland map and share that with you. So move it over here so my big head's not in the way. So you know, when we're kind of looking at some of the, the opportunities to, to invest in Scarborough comes up because you know there's some pricing pressure associated with nearby areas. So you can see here the median house price in Scarborough is $735,000. With 10 year growth it's been 4.89%. We are looking at a really good weekly rent, sorry weekly income. So the demographic has a high income, earning very low vacancy, percentage of rented 34.1. So when I did that report and really considered one area within each city, I was looking at the combination of the ripple effect so that pricing pressure that was going to push it up. So we can see here that we've got reds which are characterized as a different legend than what we saw before in New South Wales, greater than 6%. And we've got these reds and pinks that are pushing onto Scarborough. So we've got that pricing pressure and then we apply those low risk filters. So we've got the rent is over 30%, we've got vacancy under 3%. Now we've got that underlying demand that outperforms like the market that surrounded. So Brisbane over the last 10 years has done 2.3% over the last 10 years we've got Scarborough, it's done more fantastic $735,000. Now just note this and for those of you I did this with my mentoring students yesterday actually in our weekly catch up. But just note that when we're looking at an area. So let's just say that we, we zone in here on Scarborough there may actually be areas within a suburb that have higher pricing than areas outside the suburb. Sorry, there's going to be, I'm going to say that again. There's going to be areas, Jamie, within a suburb that might have a premium associated to them. So for instance it might be on the eastern side of Oxley Avenue. All of these houses here. If we actually created a territory around there, which we know that you can do in RP data all of those houses around there actually have a median of maybe $1.2 million. Then hit the beachfront and the houses that are in the canal based area have a medium of $600,000. So the median for the area is 735. So if you're moving to Scarborough you know that there's different areas but the way that I actually go through and work that out and I did this with one of my mentoring students this week when we were doing some suburb selection is I go into RP data and I select the area, the typical property, three bedroom houses, I download that into a CSV or Excel spreadsheet and then I start going of all the sales in the last six months and then I start going back into them and I start reading what the real estate agent says about those sales. So they might say this is in the new estate of Bella Vista or they might say this is in the Golden Triangle or they might say this is in the tightly held pocket of and usually within 5 to 10 readings I can actually work out where the different areas are within any suburb in Australia. So you can use that kind of methodology to get to know an area really quickly. So Scarborough 7.35, 735,000 I think was where we were looking at. 735,000 was the median price there. Now if I was going to apply 735,000 to the 10 year growth. So let's just say you're going to hold it for going to assume that if you're going to hold this for 10 years that you're going to be trying to. Oh, sorry. If you're going to, you know, have it for 10 years, you're actually going to have, if you're looking for long term growth, it's going to be a minimum for 10 years. So if I put in this number 735,000 times and what I'm going to do here is I'm going to say we're going to assume the long term growth year one and add a one in front 1.0489 to the power of. Let me start this again so I can actually make it easier for you. First of all, we're going to 1.05. So this is the one in front of 4.89 to the power of 10, 10 years times $735,000. So this tells me that the end of 10 years based on the long term growth of this area and assuming that it's going to have the continued pricing pressure and the people want to live in the area, which, you know, you'd have to make an assumption that, you know, being in this kind of lifestyle area with close proximity to and commutability to Brisbane on the waterfront, all those economic and social kind of strategies are in play that the price point would be 1.184. So you're going to have $1.1 million property at that period of time. Now if we went to Sydney and you said, well if I could buy in Sydney and I could buy a property and let's just say, you know, you're out buying a property worth the same amount of money, $735,000, but you're going to Use the long term Sydney growth, which is 7% at the moment, 6.89, 7.2, depending on who you talk to and what time of the month they report their information. So if we look at, you know, say 7% as an average of those over the 10 years and you're buying and let's say you're looking at the same type of investment, $735,000. So you might be buying, you know, a property out near the Badgery Creek construction area that's going to have some pricing pressure and opportunities for growth there. We're looking at 1.44 million. So, you know, I guess the thing is that what I'm trying to say here, Jamie, is you're going to have to look at the convenience of buying potentially a home and not having capital gains tax, if that's what you know, the opportunity is in the conversation you want to have with your financial planner around that. And consider that you, in 10 years time could have a home worth $1.1 million. Potentially you have a lender that will give you a cheaper interest rate because it's a home loan, not an investment loan. So the ongoing holding costs would be less. But obviously you don't have a investment income coming through as opposed to living where you want to live and potentially being beachfront and you know, a higher quality property that you could rent in the area rather than buy and then spend your money in an area like Sydney or Melbourne, spending the same amount of money that you would. And we've just done this exercise on what that median for all of Scarborough is $735,000. And that gives you the opportunity to have an extra $300,000 in your pocket at the end of that 10 year period. Now, I don't know where you are in your life cycle. You might be close to retirement age and hence, you know, selling post retirement, you could potentially have a economic break on your capital gains tax. You know, you could get a good rental yield at the moment. You know what we're looking in Sydney and Melbourne and rental yields are like 2.5 to 2.9%. So you're looking at that type of rental yield. You could potentially just throw it all on its head and say, well, in actual fact, I could live in Scarborough and buy in Scarborough and it could be the fallback home in the future as well. So there might be an opportunity for you to consider that you may move into it in the future after potentially the kids go to school or have finished school, et cetera. And that type of Property then suits your needs. So there's a whole lot of questions that would go into what you have asked and considerations. But if you look at the past growth and make some assumptions around, well, what's going to affect future growth? Is there still going to be people once the borders are open in the next 10 years? Hopefully in the next one year, you know, the immigration is going to come to the areas where most of the jobs are and the biggest population centres which have traditionally been Sydney and Melbourne. So I think that's a default assumption that can be considered true over the long term of where the search activity that, that we've seen from the us, Singapore and China has been when people considering moving to Australia. That's not withstanding the fact that a lot of people are moving into Queensland from New South Wales and Victoria. We have seen that interstate migration go that way. But what it does state is that, you know, there may be an opportunity for better growth based on that data in different areas to where you want to live and move. However, you're going to have to work out maybe with your financial planner, accountant, mortgage broker, etc. Or the whole team of them together how that's going to look in 10 years time. So as I said, there might be a capital gains tax cost of having that investment property depending on how far away you are from retiring. How is that going to affect you in the long term? There may be a interest rate that is higher based on the fact it's an investment rather than a home. There may be the fact that you get to just have that opportunity to live where you want to live and have a better quality of life living in the home that you want to be in and the flexibility of not having a commitment in the area so that you can move, you know, as jobs and other opportunities come up, rather than being, well, we have to sell the house and go through all this again. So there's so many things to consider that just from a cash flow point of view, you know, is your rent going to cost you more than the difference between, you know, the interest and the rent you're going to gain from the other property? So I hope this serves you, but you know, there are some considerations, but I would always start with, well, where am I going to get the best growth and what is the growth going to look like? I don't think there's any doubt that Scarborough and some of those kind of satellite Sunshine Coast, Gold coast opportunities are going to come up as being really rising stars with the growth story and a lot of that's going to be generated by interstate migration. But when the international borders open and if you are investing for the long term, we have to consider that that population, even though we saw in those headwinds that we've got a 1.1 million kind of deficit, as expected by 2030, those new migrants are going to come to where the biggest growth areas are and population areas growth as in property growth and activity being Sydney and Melbourne. So I hope this helps you and serves you and, and you know, that kind of gives you a little bit of direction around, you know, what, what I would consider when looking at where to buy and what to buy. So there you go. Okay, guys. Well, you know, as I said, it's been a huge month. I know a lot of people actually watch this in replay and it's not convenient for everyone to watch it live. And I really appreciate the people who are sending questions through regularly and you know, giving us feedback on, on what they're doing at the moment. As I said, you go to that guide section in your property Success club because there's a lot of information there. I know I've spoken to people who have joined us in your property success club and in the location masterclass and have gone back whilst they're exercising and listen to the last eight years of the monthly call. So I think we've over 100 now. But, you know, I really appreciate all your feedback. I know that a lot of questions that are asked come up time and time again and they are very similar. And you know, I really appreciate the fact that there's a lot of people and a lot of questions that are going on within the club and a lot of support from other people and you know, we've been talking and about, you know, the specific macros of the economic kind of situation in Australia in this monthly club. But the reality is that if you are a member of the your property Success club, then you know, if you've got specific issues and I know what Dan's put something up at the moment around, you know, building inspectors and someone else is talking about how to put a communal wall up because of a noisy late neighbor. Someone else wants to get some, you know, recommendations around renovations of people who can help them in Western Australia. Look, we really support you guys in putting your questions up there and answering other people's questions with your expertise. There's no silly questions. I jump in there every couple of days and so does John trying to answer some of your questions. So if you have anything specifically, please place it in the club. In between these monthly meetings. Meetings. And yeah, I'm, I'm really glad that we have such an amazing community and continue to serve each other. So. Yep. Jamie, Louise, I'm so glad that I could help you. Thank you for your comment. So, yeah, guys, I'm really, I'm really keen to, you know, make sure that you feel supported during this time, especially those of you who are in Sydney. And, you know, I know exactly how it feels for you and I know how difficult it can be. It sounds like it's going to be a great idea. You can sit down, watch Netflix. No, there's a lot of people going through a lot of mental health and emotional and financial strain. The lenders are really coming to the party in trying to assist people with mortgage deferments. So please act quickly if you feel that you can't cover your mortgage if you're renting, know that, you know, in some of the states there is some ability, if you can prove that you obviously can't get employment and income, that your landlords can assist you in reducing the rent and they get some, you know, compensation from the government as well. If you've lost your job or you have a small business and, you know, you really are feeling the pain, you know, hearts go out to you. I know we're talking to clients in the mortgage business regularly who are having some changes in employment. So we're hearing that. I know a lot of my friends who've got restaurant businesses in Melbourne have had to close those down as well. So we know it's not all peachy cheese out there, Peachy cheese, peaches and cream. But we have the opportunity and resources to support each other. There's some great mental health support out there. Check out Blissbot. You know, I was just talking to the founder of Blissbot today. They have a lot of mental health and wellness courses. They have a free membership, you know, fantastic beyond blue, etc. But if you are finding that you are having trouble covering your mortgage payments, then, you know, please consider calling your lenders before rather than later and maybe even paying half your mortgage payment or deferring it or whatever. But know that there are some opportunities out there for you to get that type of support. And, you know, as I said, there's going to be some growth opportunities. There's going to be the spring market come in. Most of us are sitting on our homes worth more than they were this time last year, which is fantastic. So you're probably sitting on some equity. Interest rates are low. We are still talking to mortgage clients nearly every single week that you know, we're able to seek interest rate reductions for them by refinancing them. But you know, you don't have to talk to us to do that. If you're looking at, you know, trying to get a better deal, just ring your, your current lender and just ask them if you know what's their best interest rate that they could potentially review your, your situation and, and see what you can do. We know by supporting a lot of our clients last year, just by that one conversation, a lot of people are saving between two and five thousand thousand dollars a year on their mortgage repayments. But you know, if you do need finance support and lending support, book a call with us investorschoice.com bookacall have a chat to Lisa, get that assessment underway and then you and I can jump on a one on one call and do some strategy. I can pull out my dot maps and all of our resources and help you work out where to buy. But as always guys, you know we are here to support, you know that. Yes, we are a bit of a spirit skeleton team, but our hearts are full and considering all of the changes we've been through in the last year, we're really proud of supporting our community. We're on the March to raise $20,000 kids help line. We've just cracked the $15,000. So really support those people who have supported us and in raising that money and thank you so very much those who are making even monthly commitments now doing that. So as always, here is to your property success. I hope you have a wonderful August and I look forward to speaking to you in August on the last Thursday of the month at 12:30. If you have any questions, please drop us a line. All the best. Bye.