Your Property Success Mentor Call - July 28-07- 2016

Sorry about that. Important to understand that you need to take care when applying the information you hear on tonight's call. We're not real estate agents, financial planners, lawyers or accountants and are not liable for any loss, damage or misunderstanding caused by reliance on any of the information provided or inferred. And with that out of the way, I'll hand over to Jane Slack Smith.

Hello everyone and welcome to the Call for July. We are really looking forward to hearing from you tonight and there's a lot coming up. I can see we've got a few stragglers tonight. People are taking a little while to get in. Mind you, it's only two minutes past eight right. So we've got some show and tell. Settle yourself in. We usually try to wrap these calls up by 9:30 but the reality is they go till 10 and we don't leave any question unanswered. So we make sure that we can get to you. And these clause are exclusively for our mentor clients, the students of the Ultimate Guide to Renovation and my special Diamond Investors Choice mortgages clients. And tonight we're actually going to invite a few people on Facebook live to join us around about 8:30 as well. So if you head over to Facebook, you property success, you'll actually be able to see John and I in the studio looking worried that we're not pushing all the right buttons all the time and see the reality of what goes on behind these calls.

You can see the color of Jane's pajamas.

We decided we're actually going to dress up. Right. Anyhow, look, if it's your first time on the call tonight, very very warm welcome to you and please don't be sh, please say hello. These chalk calls usually take place the last Thursday night, 8pm of every month. You've got a lot to look forward to. If you've only just joined us. You will get email reminders a week out from each call. So the third Thursday of the month we want to make sure you don't miss out. And look, if for some reason you can't join the call live, we do have a message line 1300-76-1119 that we've set up and I think one person used it last year.

Yeah, Lorraine, thanks for that, Lorraine.

And with me as always the voice behind the microphone, I have the co creator of the Ultimate Guide to Renovation, John Hubbard with me. Hi John.

Hey Jane. Hey everyone.

So big month for you.

Yeah, I got a fair bit going on, lots of development stuff because we're getting to the point here now and I Know the last three calls which are each month. I've said it's about eight weeks away and now it's actually about. Well, auction well completed next. Fifth. Fifth for Camberwell.

Fifth of September.

Yes. Builders are supposed to be up.

So just a recap for this of August. Oh, 5th of August.

Yeah.

Oh my gosh. Okay, so we're talking days away.

Yeah.

And just for those who are joining us, a quick recap. You secured the land in what?

Oh God, I can't even remember now. It's like the first, this one was last year in what, 2015? July last year.

So 12 months.

Yep. And then the one before that was in the December prior or November prior to that. So. So I've got two, got one, two side by side townhouses in Camberwell that are just wrapping up. They're the ones that are going to finish on the. On the 5th of August. Excuse me. And then the other ones which are in Canterbury, which have taken six months longer than they should have done, will be finishing. I'm not even gamed. I'm. I've stopped putting a date on their finish time like about six months ago. So hopefully not too much longer, another two or three weeks.

Fabulous. And do you think you could show us some show and tell photos? We all like show and tell. I was a little late here tonight because I was watching the big reveal on Fixer Upper. So you know I'm a sucker for the photos.

Well, actually I've got some photos but the first photo I've got is.

Oh, big breaking news.

There you go. Look at that.

For any of you who missed the announcement, John has been trying to get me to do a podcast for. I know since we met three years ago, 2012. It was the first, first conversation about it and I resisted and he showed the way and last year we committed and we launched in July. So this has been a really long time coming and passion of John's and now mine. In actual fact, I've got a very embarrassing story to tell you about it. But as you can see, the reason John's got this picture up there is that Tim Ferriss world renowned author.

Yeah, my hero.

Your hero webinar person. He was number one and we made number two on the week that we launched.

For a short time there, we were number two.

Yeah, we're top 10 for at least the first two weeks, right?

Yeah, that's right.

So this is really very exciting for us. As you can see there's. We've had, oh gosh, thousands and thousands of Downloads already. And we're really proud of this. And we've got. The first episode is a great little Q and A. The second one is this, my favorite. And I've now listened to it three times with Jan Summers, who is my. We put a wish list down. It was Jen and Robert Kiyosaki. So anyone who knows Robert Kiyosaki or knows someone who knows Robert Kiyosaki, as you know, he's coming out next week. We want to get him on the podcast. So six degrees of separation, we're calling our community to get that done. But that's good. Number three, John Edwards.

Yeah. Which is fantastic. Yeah.

And that was really good. I tell you how. Okay, here's my embarrassing story. Can I just share?

Yeah, please.

All right. So I set up with for my 8 year old son a radio that I can wife Bluetooth connect with the iPad. So after we've done our reading at night, we put him to bed, turn on audiobook so he can listen to Hobbit or something as he's going to sleep. Just borrowed from the library. Anyhow, so the iPad's connected. So I went upstairs to get his pajamas and as I went up, the radio's on. I'm thinking, oh, you forgot to turn it off this morning. It's been on all day. And I heard this man talk about ripple effect and he said, you know, the ripple effect doesn't necessarily have to generate around the center of the cbd. There's other areas. And he went on in this long detail and I thought, what channel is this? I'm going to have to like find. Get a digital radio and go back and find this. This is such an interesting interview. Meanwhile, everyone's waiting for me downstairs. And then I heard this girl came on and she concisely covered the whole thing and summarized it.

I thought she was really clever, wasn't she?

Oh, she was really smart. And I was sitting there going, wow, this is amazing. What is this show? And I'm getting this, Mommy, we got my jammies. And I was like, oh. And then I realized when John said, yes, Jane, I was like, oh my God, I'm so embarrassed. I must hit the iPad downstairs. And it Bluetooth up and it was playing the podcast. I was riveted.

Episode three.

Episode three, riveted.

So he's great though, John Edwards. He's such a gun like this, you know, the amount of. He virtually started that whole industry, didn't he? All the suburb analysis and data and so on.

Well, he was ex. Yes. Census. Sassy. Department of Statistics or something. Is there a Department of Statistics? I don't know, but that's where he came from. That's his background. Unfortunately, episode four, as some of our community know, has been delayed in production for last week, but we're hoping up tomorrow.

Yeah.

Yep.

So now we actually have, as a grand total, 13 reviews as well on our podcast. And I know that. Well, we can see up there, Tim Ferriss World International person has got 219. We have a goal, don't we, John?

219.

Okay, we'll make it 219. All you have to do is get into their podcast on your iPhone or on the computer and. Or the iPad or wherever you're listening and go up to reviews and hit write a review. And we would love you to listen and write a review. You only get a chance to write one review, and you can put any name you want once you sign in. So, you know, come up with a name that's not you if you want to be anonymous. But we'd love to hear what you think. And we want to keep producing these, so we'd love to hear we're on the right track.

So, yeah, lots and lots of good feedback from the last first couple. So.

Fabulous. And we've got such an incredible lineup ahead as well. I think I've learned salt, actually.

We've got the Property professor next week.

We've got the case study tomorrow.

Case study tomorrow.

Love the case study. Wait till you hear this, guys. Anyhow, enough about the podcast. Show me your show and tell.

Yeah, show and tell. All right, so let's have a look.

Just out of interest, anyone has listened to the podcast that's on tonight? They put in the chat box. Have you had a listen, guys?

Nothing yet.

Okay, so what's this, John?

We still might be talking to ourselves, Joan.

Anyway, we know that Lisa and Deepak have really said they can hear us if anyone else can hear us.

Yeah.

You reckon they would have told us. So this is Canterbury. This is the Prodigal Son. It's the one that's taking. Oh, yeah, we can hear you.

Great.

This is the one that's taken forever.

This is the first one.

Yeah, this is the first one.

So it's sad only one person does two developments at once as their first development exercise.

Guys.

Right.

It's. Yeah, six months behind. We started at six months before the. The one that's about to finish next week, and it's still going, but it's. It's back on track now. There was problems between the Son and the father. Father. You know family builders. Yeah. So anyway, it's all good now. And they're just about. They're digging the footing for the front fence there. They're about to put the front fence up. So the fence is.

You're once again pointing that no one's.

Yeah, I know. I got to do it so I can explain it to myself. So it's brick pillars and there's a brick plinth and then it's like a. A steel which is called a blade which is like a. A bit of 2 inch metal on its edge. So you look at the edge. Basically that's infill panel. So it's pier and plinth fence and you know, with big, big fancy metal black gates. So it's actually hinge gates on the far side. The far side there it leads down to the underground car park for. Which is for unit one on the left there.

And you could probably help the neighbor out with his gate whilst you're there with the.

Well that, that's actually deliberate. So it runs up. So it'll run uphill. Yeah. So when it's closed it's straight but it'll get up the hill.

Excellent. Yep.

So there you go. Let's have a back gates and yeah, so that's. It's another couple of weeks, it'll start coming together. It's all the paintings done. So I thought I'd show you a couple of. Couple of the painting shots because we talk about this in the ultimate guides renovation too about spraying and so on and. And yeah, all developments are pretty well done this way. And they go around, they spray all of the first coats on the woodwork and everything with undercoat. And then they go back and spray their lotion paint. Two coats on the walls and ceiling and they'll have one guy running behind the spray gun and just rolling that off to get the. The texture and so on. And then they come back over the timber work and put it on. On gloss enamel. And we always use high gloss enamel and a paint painters will always try and talk you into using acrylic and they'll swear that it's as good as enamel. It's not. It's easy.

It just doesn't have the wearing.

No.

And it just doesn't harder for them to wash them.

Doesn't shine. They don't like washing their brushes is why they try and convince you. So don't, don't get conned into that one. Go for enamel and yeah, you get that really Mirror, mirror finish. But the thing is, with it, you've got to be really good. The prep has to be really good. So this, this job, the slow job, the painters was, was actually excellent.

The.

He did really good preparations, you know, sanded all the miters. There was no nail holes or anything like that. And on the other job, he was actually a little bit sloppy and I picked him up on it and he had to go back then after he'd done his first coat of enamel and sand it all back. And it was a. He made a much bigger job for himself.

Yep.

By not doing his prep very well.

If you don't do it right the first time, it usually takes you a lot more time, doesn't it?

Yeah, that's right. That's right. And because you've, you've got to get it right because with the, the high gloss, it just shows up all the imperfections.

And we're talking about million dollar plus properties. Right. So we're not talking about slapping a giggle of paint.

Yeah. Each side of that will be, you know, 1.8 plus. So that's. If you imagine there's where those downpipes are in the middle, that's the dividing line between the two townhouses.

The houses on either side, what would they be worth?

3Ish.

Okay. Yep, yep.

2 and a half to 3.

And that's frosted glass in the bottom panel of those windows there.

Yeah. In fact, I meant to get. It's. It's that patterned one which I actually. It was a mistake. Yeah. Which I don't, I don't like. Luckily, the. This demographic is an older demographic. It's a downsizer, so they're not going.

To mind it too much or match their depression glass.

Yeah. But it was one fight that I just bowed down. I've had so many fights with the builders and, and this was the. I been really clear about what glass to put in there and they'd gone and ignored it and got this glass anyway and I let it go. But on the. It won't hurt us too much because of the demographic. So this is, you can see here, they've got the villa board on the, the shower. This is the ensuite to the master bedroom upstairs. And they've just gone and basically put their caulking around at the top. Paintable silicon. And then they just come in and they just spray and they don't care that they go over the walls because the tiles then go to the ceiling and go up to that. So I thought I remembered that story. Jane, when you, you know, painting A ceiling after you've got the tiles done. It's a terrible job to do, having.

To tape them and clean. That was horrible. And this is. So I'm thinking that there's a beautiful shower rose coming from the ceiling.

Yes.

There's also one to the left.

No, that's the. The exhaust fan to the left.

Okay. Yeah. So there's one shower.

One shower in this case. Yeah. Yeah. We're using. On this case, it's actually a hinge door. Just because we couldn't. Yeah, that's right. Often what I'll do is I'll just put a. They call it a blade again, which is just a. A piece of glass all the way to the ceiling. And you just leave like a 600 mil gap and then you can go through there. And that's your. Your shower space rather than having a hinge door. And the other thing you can see there is what you use for the. For the recesses. So that's a PVC bit of plastic that's 90 mil deep and that you basically cut out your noggins from that section and cut out a section of a couple of studs and that goes in, and the backing of that plastic ends up on the back of the plaster of the other side of the wall. If you know what I mean. So it fills in that cavity of the space between the studs and then you waterproof over that. That hasn't been waterproofed yet. That bathroom you can see there, they've. They've taped up to 2.1 or, sorry, 1.9. And. And they'll waterproof that area to keep that all waterproof. And then they'll put mesh and stuff over that PVC and, you know, waterproof it all up. So. Yeah, that's how they do that. And that's the other job that's. That's the one that's finishing next week.

It's actually like that exposed rock kind.

Of finish the stone on the cornerstone.

Look at that in New Zealand, don't you? Especially the south island stone.

Yeah. Yeah, that's good. Found a spoiler at Dandenong for. That was pretty good. Yeah, it was. It's funny this. It's a much nicer facade, this one. But, I mean, not. Not with the. I'll go to the other one. There you go.

I'm giggling because for years I worked in underground coal mines.

Yeah.

And that's kind of what the toilets look like. They're on the back of a trailer. And you had to be really careful. If you went in there that other people, you didn't want them really to know that you're in there. But when, if you were in there, they sometimes would hook it up and take off. And they never did it with me. They threatened to do it a thousand times. So whenever I see a portaloo on a trail, I'm like, yeah, never going near that.

I reckon mine sites must be pretty similar to building sites, I reckon.

Yep, I reckon.

Because the other one don't do this at home, kids. But what the carpenters will do is they put a thin piece of timber up against the edge of the portaloo and then they shoot the nail gun through it. So you just see the nails popping through.

Nice. Lovely.

Yeah.

Especially for those that have rented the portaloos.

Yeah, yeah, yeah.

Okay. So these are nice too. So what kind of price range we're looking at there?

Well, we've sold the right hand one. So that sold for 1.8. Sorry? Yeah, 1.87. Yep. 1.87. 7.60. And then the. The left hand one is the one that's going to auction on the. On the.

What do I say, 10th of September?

Yeah, 10th of September. Yep, yep. So yeah, all the landscaping and stuff's getting done there. There's some planting that goes in the. In the middle. And actually the. I was there today. The concrete's down on the drive and everything now as well. And do you have a favorite? The other one's my favorite. This one's the nicest facade. It'll look the nicest. But the other one's my favorite just because it's a bit more high end and I think probably a bit more of an achievement in style wise because we had to marry. It was a more of a challenge because it was for a demographic that was coming down out of a. Maybe a three million dollar house. So they needed to have all of the. The. It needed to be the level that they were accustomed with and it needed to be modern, but not too modern and have a bit of classic at the front. So in the formal section at the.

Pretty much everything.

Yeah, yeah, have. Because it needed to look up market. So we've got a modern type, almost like a deco cornice, which. But one that projects quite a lot onto the ceiling in the. Into the front area of the. And in the formal lounge at the front as you walk in the property and. And then as you go out the back, it's square set but still quite high ceilings and just more of a classic modern look. Almost like a. A mid century modern kind of look and then this one's just an out and out modern place. So it's actually a bit easier to do. So use starker whites, more contrast, all that kind of thing.

So do you want a. Your property success cheese squad turning up on the 10th of September?

Yeah, we could do that. Haven't they at the Jess. Well, we might actually arrange maybe a day where we can all go out one after. It's either before or after interstate.

We don't expect you to fly down. Yeah, that'd be good.

Yep.

And you can take us through. So the, the challenge on the other one, it was slower, supposed to finish sooner. This one's going to finish first.

Yep.

And. But they're both pretty much going to go to market the same time. August, September.

Yeah, yeah. The other one will be about three or four weeks behind this. But yeah, this will go first. So it actually will give us a little bit of breathing space because I mean it's, it's. This is the hard part when it's all coming to the pointy end.

I'm going to interview you know about this and do a, you know, will you ever do it again and your lessons learned. Because I know there's a lot of people out there who've thought about developing and, and you know, it's a great strategy on looking at a twist of maybe buying a property on a larger block and subdividing and even building on the back and renovating the front and selling off or knocking over in this case and, and doing two townhouses that. And in this case very high end. So I think as a strategy I think a lot of people would be interested. Are you guys interested in hearing about this? If you are, let us know. Put it in the chat box because we'll, we'll do a whole lot of detail on it in the future.

But yeah, we, we bought these with permits and I know we've mentioned this a thousand times. Such a good strategy, just buying and selling with permits because there's.

You don't have to go through those.

Builders, most of those developers that I know but like they buy with permits just so they've get the throughput because they've got teams of guys that they want to move from one job to the next one and, and yeah, they just cut years off the.

Well, look, people are saying they're interested, John. So I reckon we'll do a special, special little broadcast.

There's the kitchen pendants, everything's led.

Now where do we get these?

That's. They're from about space in Melbourne, about Space.com. so they're the three over the, the kitchen benches.

Nice.

And then the last bit I thought I'd show you was just the wine rack.

Yeah, why not?

So this is a bit of built in furniture and often I find this in little funny areas where you have to decide what you're going to do with them that they end up being a real asset to the property. And this was one where it was like we had the space. What are we going to do with it? So we've built this. It's a buffet. It's called a buffet. Which doesn't mean you get, you know, or you can eat chicken or anything like that. It's, it, it'll have, it's obviously in the wengy color, the dark timber. It'll have long very nice looking handles on it. And then on the other side will be a wine fridge, wine rack on this end. And then what you can't see yet is the. It continues to be built up the sides and across the top and then there's a bulkhead above it and it's kind of divided into. If you imagine the. On the left hand side there where the wine rack ends, there's a panel that goes up, up to the, not to the ceiling but to the top of the unit. And then on the other side where the, the fridge ends, there's another panel that goes up in the same way. And then there's some glass shelves in, in the sides of those. And in the middle of is some, some wallpaper, some seagrass wallpaper and then some. A nice piece of art in the middle of that kind of thing.

Thing. Very flash. We are talking about a house that has not just a kitchen, it has a. What did you call a prep kitchen.

It's a wok kitchen.

And a wok kitchen.

Yeah. Which is what you can see there to the right hand side, that door there.

So no one knows that if you're making a dinner party you actually make a mess.

Yes, that's right.

Oh, oh. To live in that tub.

Yeah, yeah, yeah, yeah.

But he did it.

It's.

It's amazing how good these cabinet makers are.

We actually had someone do some built in bookshelves for us and they're just immaculate. They're gorgeous. And they're the first things that people talk about when they.

Yeah.

Walk in. So. Yeah.

Yeah. It's easy to run an argument that why would you, you know, let people do it themselves and that kind of thing. But the. This, it's little things like this that make the difference, that make it really feel high end.

And so by the time we see you next time, we'd have this beautifully styled. You styling both the properties for the auction and the sale campaigns. Yep, yep, perfect. And do you get an input into the style of the furniture? How's the styles work where you just go, you know your job?

Yeah, we go through at, at the quote stage. I go through with them and I normally bring in one case I didn't this time, but I normally bring the interior designer as well, who I work, I work with from the start. I work with the interior designer on absolutely everything from the light choices to light placements to all the room set outs and so on. Because we need to think about where the PowerPoints are going to be so they're hidden and where we're going to position the furniture so we can light it and stuff like that. So we haven't got any cables hanging around. So it's, it's all thinking about it like it's a presentation. You know, you think about it like a 15 minute open for inspection and what, you know, what will someone see first as they come through the front door and as they continue, you know, which, how the room's going to be set out and all that kind of stuff. So.

Yep. So good.

So yeah, I'll get a little bit of input into, into the staging.

Yep.

So that's that. So what have you been up to?

Well, it's been an interesting month. The Australian Property Investor magazine this month did a case study on a little renovation that I did last year. So we spent about $33,000 on a property that was valued by the value at 820 and turned it around and they came back and validated at 920 within a short period of time. So that was nice that we definitely got our at least $2 back for every dollar that you spend in uplift. So that was fabulous. And rented it out for more. Better. You can have a look in API magazine. It is the. Oh, let's have a look. The August edition, which is really exciting and also that's been on the shelves for the last three months has been the Money magazine real estate guide. And I just love this. Yeah, everything I could to actually get my hands on as many copies of this. I wanted to send them all out to my mortgage clients and I could only find 40 in the end. But I had a bit of a chat to Effie from Money and Ben Kingsley and Peter Coolas who share an article with me on a Challenge where I was given $50 a week. Find an investment opportunity for $50 a week. Peak 150 and Ben 250, which I think was just way too easy. They throw a dart there. And anyhow, I reckon I got the hard task and I suggested that we go head to head and try to argue our points. And they've all said yes. So watch for that webinar at the end of the month, guys, because I think it's going to be a bit of fun. Yeah, what else can I tell you? Oh, last Thursday night, I hope you didn't miss it. The seven step formula for the top renovation suburbs. We had a fabulous time. In actual fact, we could probably even put the, the link back in there.

It might. Yep, we could. It might not be there for a very long time, but if you're in, let's, let's find it.

So anyhow, for those who missed it last Thursday night, I know that this link shouldn't be live. I thought we'll bring it down. Okay, don't tell John because he's in charge of that. But anyhow. So the seven step formula for the top renovation sub is basically a. Teamed up with Jacob from Ripe House and said, look, I've been doing this manually for years and trying to get from the 14,000 suburbs down to the ones that are going to have the potential with the pricing disparity in my seven tips. So I shared my seven criteria and we actually got down to 24 suburbs. So we reviewed two of them on the night. We've just put out a report actually with I think it's like $97 with the five suburbs in it that actually top five that came up, which was just insane. So we know it's hard to find those amazing suburbs that fit all the criteria. And these, these ones did. So yeah, it was really. It was a fabulous webinar. Got great feedback from it. And thanks for those who joined us. What else can I tell you? I have been actually, I have been also talking to a really interesting gentleman. He's got an interesting website called Microburbs. You might have seen me use it sometimes for analysis. Microburbs.com I have. He's a big data man. He's got data on everything.

Yeah, I love that site. That's awesome.

And actually I might swap over and share with you this, this screen. But yeah, basically what he has said, what he said is he's got data on everything. Oh, as you can see there, that was. That's what the seven step formula looks.

Like, should we have the copy? Can you copy and paste that in? No.

Yeah, why not? Have a go. But anyhow, so that's, that's where that is. And I'll just see if I can put this in the chat box so everyone can have a, have a look. And anyhow, so that was all very exciting and didn't wait, but this is what I gave him a challenge for and he's just sent it through this afternoon. So this is all very new and very exciting. But I said, look, you know, we talk, read about, you know, Sydney's median price is 1.050 million and you know, Melbourne is 750,000. But for those who are looking for within 10 to 20ks, you know, there's complete difference in what the median prices are within 10Ks the CBD or 20Ks the CBD or 30Ks the CBD. And I believe I know when we're doing the analysis for the hotspotting workshop in Brisbane, you know, there was that median price, I think it was around 560, but within 20Ks there was no suburbs really that had that median.

So within, it was skewed by all of the outer suburbs because there's so.

Many outer suburbs that are cheaper that pull it down. So I really wanted to get some big data. I don't even know if I've got permission to release this because I only got an email this afternoon, but I'm going to do an article, I reckon with Luke, so I'll make it up to him. But as you can see, 10k is the CBD of Sydney. The median price is 1.685 million. Within 20ks, 1.35 million. Now that is extraordinary. And when we come over here into Melbourne got 955 and 686, so within.

20K'S a huge difference.

And it drops off quite quickly as well, you know, 30, 40Ks as you get under, you know, as you would assume, you know, in Hobart pretty much consistent.

Well, in Melbourne actually it's the 10 to 20, isn't it, where it really drops off?

Yeah, so it's quite, it's a really interesting information and you know, Canberra quite significant as well, and Brisbane. So, you know, when, when we're talking about that, you know, trying to find a property within 560 or so medians that they're quoting, it's these lower end 30 to 40ks out that we're looking at here that are really, you know, making that overall city price come down. So I think, you know, I think we Might be onto something here. Some interesting numbers here guys. Also in units. So once again, you know, 815 compared to 680 interesting here. The Melbourne units within 10Ks are actually lower than the 20Ks and I think that's because of that oversupply that we're seeing of those cheaper units and the newer units, South Banks and the Docklands and, and the. Exactly. And the older units are, we're not necessarily. I've got the older units that, that 2010 to 20K range. So once another reason why, you know, targeting the areas that you look is so important. So I thought this was really interesting.

Yeah, that's awesome.

So I, yeah, I was pretty impressed with that. So there you go. That was, that was my show and tell and I think the, oh, I don't know what I've done there but the information that came out from that was really, really interesting and I'm going to keep challenging him I think to go back and give us more information. So if you think of information we need, I reckon we can ask, which is good. And the only other thing that really had me a little bit challenged earlier in the month was I had a chat to my accountant and he said, have you considered getting a new car? I think he saw the car that we turned up. Our previous car was a 15 year old car and this car's a 10 year old car. I'm not, we're not into cars. He said, you might want to consider a newer car and you know, it's opportunities for you to look at. I'm like okay.

Did he ask you about your personal brand?

No.

Should accountant describe it the other day like that your car? It's like, well you've got to think about your personal brand.

Oh really? I know I spoke to a real estate agent today in a, in a small town and I said, do you have the flash car loan as well? When I was looking at doing a loan for her and she said yep, it doesn't change anyway. But here's the thing, right? So they came back and said, you know, if you have a no balloon payment, you pay the car off in three years. It's seventeen hundred dollars a month. Now I've always bought cash for car. I've always bought an older style car. I'm not interested in losing money, blah, blah. And I know I've been in your.

Old ute and 2003 Falcon ute.

Seventeen hundred dollars a month, that's a mortgage repayment. I've got mortgage repayments less than that. You know that is insane. And it's like, do you choose a car, a new car to keep up with the Joneses for three months, or did you want to have. And in this case, that $920,000 property in Darlington in Sydney, I bought it for 425. It's got like a $390,000 loan on it. It is like a $1700 a month or something like that repayment. So that's the choices people make, right?

Well, it's. And accountants, too. It's like that thing of if you're a hammer, everything looks like a nail. They just think in terms of they're looking through the tax lens. And remember in the. Going back to the podcast, episode three, where John Edwards talked about ignore the tax, you know, if it stacks up as a property, the tax will stack up too. And people skew their investment decisions that way as well by looking at the tax first. And it's really the tail wagging the dog, isn't it?

Exactly. In actual fact, I did an exercise with one of my senior brokers yesterday on behalf of a client who was saying, you know, around the benefits of remortgaging a property and selling the property to another entity that was related and, you know, minimizing some of their repayments, et cetera. At the end of the day, it was like, you know, $30,000 stamp duty fee, and it was like 11 or $200 additional cost per year saving. I was like, you know, I think you can get caught up with the negative gearing, et cetera. It definitely helps from a cash flow point of view. So. But anyhow, so that's it. And I guess as a lot of, you know, who are part of our community family, we've also had a very tough couple of weeks here as well. So for those of you who have been in awe of our amazing webinars and productions that we have been put on in the last year, we had the benefit of having an amazing man, Ray Belcher, join us in January. And Ray came with God. Ten years of executive producer of Young talent Time and hey, hey, it's Saturday. And then he was on the concept team for ER and Cheers, worked on Cheers.

Yeah.

Directed George Clooney is. Directed. Hugh Jackson. Anyone you name. He knew everyone, but very humble and unassuming and, you know, had God production houses with millions of dollars of budgets and equipment.

And he come and mucked him with us for seven months.

Yeah, he. He loved what we were doing. He loved the authentic of it. And it was something that he really, really Believed in. And he went in for an operation last Tuesday who was begging us for the work to have back this week. So he's like, I'm going to be home bored. I want to have some things to do. And unfortunately, he didn't make it through the operation. And we heard the sad news about his passing on Friday. So it's been a very difficult time for us all.

Quite an unusual thing. He had a reaction to the anesthetic that was said to be 1 in 15,000 chance of having an anaphylactic reaction that badly. And yeah, just went in and didn't come out. So, yeah, very sad.

So a gentleman, a friend, a work colleague and a member of our family. And as families do, they share the triumphs. Like our podcast. We managed to get to the pub with him and have a celebration, our first podcast night. And so we're all reeling from that and we really, really appreciate the support you guys have given us and the reasons why we haven't got a couple of things up on our websites. So we're just hankering down and supporting each other and obviously here for you guys. But one of the things that he loved was pushing us to the bounds and he kept talking about this Facebook Live. So we're going to have a go at Facebook Live tonight. So I'm going to press the button on this. Hopefully we get some people online. I hope you guys get over onto the youe Property Success Facebook page and give us some kisses. You might see if we get any comments and have a look. We might film 10 minutes or so because I can't see the comments. So 10 minutes or so, we might share some of the Q and A sessions with these guys and see what they're up to. John, Will.

Yep.

I'll describe Jane is walking over to the phone now and she's pushing the button. And there we go.

Yep.

Yeah. Thanks, guys, for the those comments. And here we go. Looks like you've hit the.

Well, it does say we're going live. So it says trying to reconnect. It's always good when you get that happening. And we're live.

You're live. There you go.

I know you guys on Facebook. Your Property Success. You can actually see us in the studio for the first time. So this is what we look like. And John's frantically trying to turn his phone on now. I did have a couple of questions. Oh, thank you so much, guys, for your condolences. For those who have just joined us on Facebook Live, welcome to the monthly you Property Success group mentoring Call that we do now this is usually closed to our ultimate guide to Renovation students and our Diamond Investors Choice students. And sometimes we have some people from your property success club and try us out as well. So it's a monthly Q and A call, runs the last Thursday of the month. We've been challenged this month and we had the passing of a very dear colleague of ours who was our producer and director and friend and colleague and he wanted us to try Facebook Live. So here we are. In memory of Belcher, we're having a go at Facebook Live so we thought we'd take some questions. I did post something up a little bit. Now I can see a photo of us on here. So I did post up some questions earlier in the day. Just saying hey guys, did you have a question? And someone came back, Lorraine, with an interesting question who said what are your thoughts about cheating interest rates? Especially with the fact that people at the moment are having trouble in actually getting loans approved because their borrowing capacity due to APRA changes have changed. So I'm taking that as cheating as we're not talking illegal, we're talking about how can you actually get some lending still when you might be maxed out. And there is I guess some significant issues. We've had people who've had a pre approval last June that for a $900,000 purchase price that once all of the changes came in and banks actually didn't take the actual interest rate repayments of exist existing debts but actually buffered them up to 7.25% and took principal and interest for 25 years that those borrowing capacities came down to $450,000. So at the end of that three month approval in principle that was approved for a $900,000 purchase, it came down to $450,000. So we've seen significant changes for some of our clients. So how do you cheat this? Well, earn more money or take the opportunity to maybe reevaluate your current portfolio. Because sometimes in your portfolio you have a non performer that might be just hiding in your portfolio that you haven't really reassessed in a period of time. So look, if there is the potential growth, if you bought it for growth opportunities and it hasn't performed reassess, does it still have the criteria that you need to be worthy of chewing up your borrowing capacity? I wouldn't be rushing out and selling those properties because the reality is that you may not have the borrowing capacity that you had when you first took that property. So you might be looking at potentially using a portability loan to move that to another property. And that sometimes requires back to back settlements as well. And I said we've got questions coming up. So back to back settlement. So you have to time that as well. That just means that for some lenders, they don't require to be reassessed. So if you can afford your loans now and you have been paying, making your repayments, then there's an argument to say that that's an opportunity for you. I guess there's also, there's also the opportunity for you to go to some, some what we would consider third tier lenders. So there are some third tier lenders that are still considering back to back. Not back to back, sorry, that are still considering taking actual repayments. So it could be the opportunity for you to actually go to those lenders, speak to your mortgage broker and see what those lenders are actually offering, what your borrowing capacity as well. But obviously I really think that although it's been a pain, and as a mortgage broker myself, it has created a lot of angst, there is opportunity. And in actual fact, with one email last week to one of my current clients lenders, I said, I'm going to refinance this person to a whole new lender unless you can come back with a better interest rate. And we went from 4.8% down to 4.04% and we save $5,000 a year over 10 years. That's 50 grand. One email, save $50,000. So, yeah, we've got some opportunities to now to have those conversations and which is really great too.

So Lauren's got a question. Joan?

Yeah.

Will investing in Real Estate Today offer you the amazing returns that it did five years ago?

Yeah, look, I think that, you know, it's kind of like, like the questions that I often get about should you wait and time the market? It's often the time in the market that it really categorizes the success that you can have. And you know, I know that we've bought properties over the last, well, 20 years. John started investing and I started investing over 16 years ago. And you know, people have always said you were lucky because the prices were lower and you were lucky because you got in before the GFC or you were lucky because. And the reality is I never actually looked at the market at the time. It always seemed expensive. And when you're back in 2006 and you're looking at $600,000 median prices in Sydney, it seemed really expensive. And now the median price is well over a million. And I think the Thing is about can you still make the returns. It's around being strategic about where you buy because I've in no doubt that it comes down to purchasing a property with good capital growth pot and there's some drivers to capital growth. So we're talking about population demand, the property that's right for the demographic it's about looking at the properties and looking at the areas and really becoming a suburb area expert and understanding where to buy. And we talk about the Trident strategy here at your property success three ways of making money. So knowing an area so intimately that you can actually see the opportunities to buy below the market. Looking at renovating to add value and push the rent up too which is going to reduce your cost and maybe create some equity that it allows you to buy a sub subsequent property and then having that growth that's going to get you through. Because you know if you've got a property that only makes you $10 a week, you know, maybe, you know, I don't know, let's say five grand a year in ten years it might have made you $50,000. You pay tax on it but if it hasn't gone up in growth then it's not getting you closer to your goal of actually maybe retiring with a passive income or something. So you know, I think yes, there's still an opportunity to make money in property. You just have to be a little bit more strategic about it. And for those of you that Jo renovation Looking at the seven criteria that I used to find great renovation suburbs last Thursday night you'll know that we put in all of my seven criteria into the Ripe House database of all the information they had on 14,000 suburbs around Australia and we came down to 24 that met my criteria. So I know it's difficult but I know it's possible.

Can we sneak one more in?

Sure.

What one piece of advice would you give a first time investor based on today's market? Market.

Oh, good question. Who's that?

It's Lauren again Lauren, thank you.

Look, as a first time investor I think that and this is one of the reasons this is the the Money magazine. If you can get a copy it might still be on the shelves. Do that because this has been out for three months and it's their real estate guide and in actual fact Lauren, I'm so impressed with your questions. If you can message me and let me know your email or your mailing address I'm going to send you one of these. But I do just I loved this guide because it really took things Back to basics. And it starts with what are you trying to achieve? And a lot of people don't know what they're trying to achieve. And I even spoke to someone today and said, and she said, you know, I've got a couple of properties and I'm really keen, you know, to grow my portfolio. And she's really quite young and is really doing very well for where she is. And I said, so what's the strategy and what's the end game? You know, what do you want to do in 10, 15 years you're on a $50,000 passive income. Just saying, well, I don't really know. And until you know your destination, it's like getting in your car and driving around, hoping, hoping that you're going to find out where you think you might end up. We're talking about having your kind of automatic gps. Put your GPS in and say, this is my strategy, I want to renovate, I want to flip, I want to develop, I want to granny flats or whatever it is. Understand your strategy and how that's going to get you to your end goal. So I think for a first time investor, don't get caught up in the hype of I have to buy a property. Don't get caught up in the hype of everyone's doing it. I'm being left out. Be strategic about it, understand what you want to achieve and then understand the strategy that is going to get you there. And I think that's going to be the best thing that any first time investor can do. And then take action, educate yourself and take action.

Comment from Tris. Just make sure before you're bidding an auction that you check that your pre approval is still valid.

That's right, yep. It's always sounds like he's got a personal experience there.

Yeah, yeah, I think he might be some kind of professional there. And Fiona says, thoughts on the Sunshine Coast.

The Sunshine coast is really interesting, especially with the hospital development. And you know, we've seen, I think in the last 18 months Queen Queensland's been quite interesting because we've seen this. I've had a lot of my clients buying that Logan area maybe 18 months to 12 months ago. And that was really driven around cash flow. And now what we're seeing, and we've seen on a couple of experts reports, Terry Wright is hotspotting reports, we've seen ripe houses, price prediction reports that Moreton Bay area and that Moreton Bay area is kind of pushing up into the Sunshine Coast. There's a lot of fundamentals around infrastructure and traffic transport into the Brisbane hubs that supports that area. But that employment opportunity that we're seeing around the hospital really seems to be generating a lot of rental demand. A lot of people are moving there that have a higher, what would you call it, entry price they can afford and because they're doing that, they're pushing prices up as well. So I think there's some of the things that we look at is the demographics around what's driving that population growth and it's a long term thing. It's not like, like you know, 2,000 guys are going to turn up and build a mine and only 10 people are needed to run it. We're talking about, we're talking about a hospital that's going to be built. It's a significant type of infrastructure and I think it's really got some really great opportunities there. So Sunshine coast is on my, my hit list to watch. So anyhow, guys, I hope that you've enjoyed our little Facebook Live. We're going to get back to our, your property success mentor call. We've got lots of people on the webinar here and I hopefully they're going to put some hands up soon for some questions. But we did this in the last Thursday of the month for our, our, our community and this is a bit of a tribute to a really good friend, work colleague and mentor of ours, Ray Belcher who unfortunately passed away on, on Friday and he's greatly, greatly missed. He was loved by all. And I really, you know, as, as I said, families support each other and we celebrate the good stuff, stuff like we did with our podcast that launched two weeks ago and we celebrate the sad times and that's what we're doing. And as a tribute to Ray, you're out there somewhere. Thank you so much for everything that you've done for us. And it's goodbye to Facebook Live. See you guys. Well, that was pretty exciting. I think that worked.

Seemed to work.

I hope people saw it. And we're done. And 57 people tuned in. We had some nice questions too. So without further ado, good, positive stuff, we are going to get onto our questions. Right?

Yeah, I can't see any hands up yet, Jane.

Oh, well, I've got to tell you, I've been writing some, I've been writing lots of articles this month as well and I've been contributing to the Australian Property Investor Renovator newsletter. We've got a bit of an Ask Jane section there and one of the questions that came up in that, that I was answering today that I know that often people ask about and especially when it comes down to affordability is the question regarding should I buy a unit over a house.

Yeah.

So I thought, you know, often a.

Question you're hearing in Sydney at the moment, right?

Yeah, exactly. But here's, there's some, there's some good things about it and there's some concerns about it as well. So the good things about it, obviously, as we saw from the data from microburbs, they're too cheaper and units are often cheaper in the suburb than houses. But here's the biggest issue that I see with this. I see people, you know, they might do a dot map on houses. They do all the analysis. They come down to their three to five suburbs. They're really excited. They do the, you know, percentage of renters and they find the streets to buy and they follow our kind of criteria or getting down to understanding, finding, you know, those, the specialized sweet spots of where to buy and then they realize that they can't afford it.

Yeah.

So what happens? They go, well, it's a good suburb, why don't we buy a unit? And that is not good recipe for.

Disaster because they haven't done the research on the units, right?

No, that's right. So there's a lot of drivers and dynamics there for houses but not necessarily for units. So what you might find is the typical house. And you know, and I remember talking to a client about this. She asked, she was just desperately worried about this property and I think it was Box Hill that she had it. She had a one bedroom unit in Box Hill. And she said I just, it's hard to rent and it's, it hasn't gone up in value and you know, it's, I don't get it. And we went through the census information. She said, you know, a friend of mine told me Box Hill was good and it's just not good. And it was like, you know, 80 and 90% of properties in Box Hill were houses and, and the majority of people wanted to live in a three bedroom house. And she had a one bedroom unit. It was never, nothing she could ever do to that was going to turn it into a three bedroom house. And so it was completely and utterly wrong for the area. But she had the right area. Right. So it was that kind of way. Everyone said Box Hill's good, so let's go to Box Hill. And so I'll buy what I can afford. And I think that's a problem. And I am regularly having conversations with people at the moment regarding that. And I think that if you do find from an affordability point of view might be pushed, I don't know if you want, you've decided that you want to be in one of those more expensive cities and you know, the house prices are pushing you to the 30, 40, 50k mark from the CBD, then you want to start considering units, then, you know, start the analysis again. Dot map for units.

Well, we're seeing that in the ultimate guide to renovation people. Dot mapping units.

Exactly. And I, I've got a success story for the dot map.

Oh great.

Can I share?

Yeah, please.

So Ben, if you're out there, One of our Diamond Mortgage clients flew over from Perth last year with his dot map.

Only a young fellow too.

Yeah, good guy. And he engaged me for a couple of hours to do some analysis with him on his map and just go through and do a bit of a strategy session. And we went through this dot map that he had and we came up with an area called Airport west in Melbourne to buy in. And it was on no one's radar. It was like the dot maps telling us this is the area. But you know, I, I shop at Airport west regularly. It's not a, it's not a thriving, you know, suburbia kind of place. A lot of, a lot of development. But this is whole Essen and Fields area that's opening up and a lot of things going on. This week actually yesterday in the newspaper they had the, an article that was called the Ugly Duckling Hits a Million Dollars. And the house prices there, there were 600,000 last year or 500 when, when Ben. So looking around, there's been some sales at a million dollars. They've got the pricing disparity happening.

So the dot map and did Ben by there?

Oh, I can't disclose that type of information. Privacy prevents. But, but he did find. He did, he did definitely through his analysis and work actually found the area. And we know we did the dot math tapping exercise in February in the hot spotting workshop here and then we redid it in May and we came up with different suburbs that short period of time.

Yeah, yeah. So which is what I think people often misunderstand that 10 year growth figure. They think it's literally the, the, the last 10 years worth of growth. And it's, and it's not. It's annual growth that it's cumulative. Yeah. And it's averaged over 10 years because if you imagine it's 6, it's getting 6%, that'll be 60 gross growth. If it was 10 year growth, but it's not. It's the annual growth.

Yeah, yeah, exactly.

So and so it just smooths out those bumps. So when you're doing that, it can change quite fast. And we saw that when we did the original dot map in the Ultimate Guide to Renovation for Sydney. And people were having to change the increments. Yeah. Just so that's like 0.5% growth so they could get on the map. Yeah.

So anyhow. But yeah, I think so. The question was around units, you know, should. Should you buy units? I've bought units in the past, bought older style units less than four storeys, you know, which means that you're down on that strata fee cost. You don't have the cost of maintenance of lifts. I like having a higher percentage of owner occupiers in the units because they just look out for them and are more interested in making sure the maintenance is up, you know, upkeep up. But the other thing is that I always go through the. The body corporate minutes for the last 10 years and just look at comments around unit 5 wanted an air conditioning and we said no kind of stuff because they're not going to let me go and renovate easily. And I just want to look at bylaws and issues associated with any renovations that I want to do. So. Yeah, just something to, I guess take into account and. Yeah. So there you go.

So stick your hand up if you like a chat. I've got. Per's got his hand up. I'll just unmute.

Purr. So, Purr, your microphone should be clicking on. Can you hear us? Because we can't hear you. Purr. We got a microphone. Or would you like to put a question in the chat box for us? And while we're waiting for Purr, I do see on the line someone here that I have been very keen to talk to, actually. Gabrielle. And the reason for that is. And Gabrielle, Gabriel wonderfully rang the office today and had a long chat to Diana, saying I wanted to give you guys an update and we were going to hunt you down anyhow, Gabrielle, because for those of you who have been listening to. And I know we got a lot of people who listen to three years worth of mentoring calls before they ever kind of get the courage to even put their hand up. You probably heard about three months ago, Gabrielle had entered into the finance clause on a property and was having buyer's remorse course, which I've always had. Have you always had? Yeah.

Not really.

Really. I always go. Go back and go the numbers right Is everything right? Is everything right? And I think if you don't have it, then maybe you're being a bit too flippant.

Well, no, I. But as long as I'm not flippant beforehand.

Okay.

So once. I mean, I mean there's kind of no point to me.

Oh, Gabriel says great, don't worry, no problem hunting me down or I'm about to put you on air. But the interesting thing, we did the analysis for Gabrielle and. And he was, was at the sticky end of actually signing on the contract and handing over the deposit. And all that the real estate agent had revealed at that time wasn't right. So I might just throw it to Gabrielle because I understand that he has escaped that contract and has entered into one today. So Gabrielle, are you there? Because we'd love to hear from you. Oh, hopefully his microphone's about to turn.

On some dramas with mics and I don't.

We. Here he is.

You there.

So you escaped. You escaped the last property. Hey, what happened?

Well, just to recap, I think we offered 460 at that stage, but then we did a building in Pest and there was quite significant concrete cancer as well as other issues quite quickly to assess how much work needed to be done. Totally from memory, about 80,000 or so. So quite significant amount of work, I guess because the builder was someone we knew, we kind of wanted to be a bit more conservative with that estimate and he was happy to do that. So we tried to use that as a method to negotiate down just to make the deal viable for us. In the end, not working. They were happy actually to go down to the 440 mark, but it still didn't work out for us. So we ended up using the building and pest clause to get out of the deal. It ended up working quite well.

I'm glad that worked for you because I think when we did a little bit of analysis as well, was it the agent had alluded to there was more bedrooms than there actually was and maybe it wasn't the typical type of property for the area when we got into the analysis.

Well, I think with the analysis the floor plan was slightly different to what we expected. I guess with that. I guess one of the good things was the agent told us about the property fairly early on. So we were the first buyer in. Essentially we actually turned up before the agent did and had a bit of a talk because the vendors let us see.

Nice.

So yeah, it ended up being slightly awkward for the agent, but yeah, ended up because of the building issues, we kind of Left the deal.

And tell us about the good news story, Gabriel. Let us share in the joy.

Yep. So we've put down our 10% for another property. It's in a suburb close by in Mount Warrigal, kind of near Wollongong.

Yep. Great.

We're still working on exactly what we're going to do, but it kind of. It was an opportunity that came up.

Yep.

To give you a little background, we ended up. It's quite hard to find property or good deals in the area because as soon as they come up online, people make offers on it. So I kind of did a bit more legwork and started contacting agents. So on a weekly basis, I think I called around 60 agents a week.

Wow.

So just over a few months. So they got to know me very well.

And you were sharing with them at the time. You know how we shared in the Ultimate Guide to Renovation. That kind of technique, I think John was talking about is actually giving them almost your buy sheet. So they knew exactly your criteria. So when something came across your desk, they could talk to you first and you use that strategy.

Exactly. So I kind of sent them a buying criteria so PDF and told them exactly the kind of property we're looking for. An older style property with a budget of up to 440 for us and. Yeah, exactly. Which suburbs you wanted. We kept to it. Each time they caught us, it was the wrong suburb. We had to reinforce modern, etc. Until they kind of got. Got it in the end.

Yeah.

They can be stubborn.

Well, they. Yeah. Buy the next. The next. Every house that comes along. Yeah.

Yeah. So in the end I worked out that the buyers, the agents in the area have a sales meeting on a Tuesday morning generally. So I typically call them on Tuesday afternoon.

Yeah. Good move.

Yep.

So I kind of find out the best, I guess the early deals and a lot of times the contract that had come in or they just came in in the day and I was able to visit in the afternoon. So pretty much I got fresh picking for a lot of properties.

Yeah, that's good.

So we end up now. So. And this particular one we knew very, very early on as well.

That is fabulous. And. And tell me you were. So you've gone through and you've used some of the criteria in assessing that this property suits you or are you still in the finance clause or where are you up to in your research?

We've done our building and Pest. Originally it was the 0.25. So we had a calling off which was five days originally and we just finished 10 days yesterday. So we're off calling off now and proceeding to settle it. One of the difficulties with this particular, like, so we kind of purchased it for 420 and it's estimated to, I guess, as it is now, to cost about 474.80. So we bought it for a lot cheaper.

So prong of Trident one tick.

That's right. So build equity straight away.

Yeah.

Fabulous.

This property also has potential to renovate. So another Trident tick. So you kind of. We went through the RP data and if it's much better, the Property is worth 550. So we can renovate.

Yep. So what Gabrielle's talking about there, in RP Data Professional, there's an opportunity for you to actually generate your own valuation. And this is the same valuations that the bank uses, or a lot of the banks use Valex and data source Marpi data. And so what Gabriel's done is he's gone through and he's estimated the current valuation based on it being probably slightly below the others in the street, and then he's redone the valuation based on being slightly better. And that's where that differential from like, what, 470 to 550 comes from. Right, Gabriel?

That's right. And I guess just to be a bit surer, because Jane has kind of allowed me to get some access through, I think your property success. I could check the figures with the Residex report and yeah, it stacks up in terms of the street and knowing what, like there's between 6, 7 and 8, break up the street in 10. If you kind of try to aim to renovate to seven or eight, it is in the 550 mark. So if I renovate, it's not atypical of the street.

Yep, great. Fabulous. And good growth prospects. We're going to tick number three on the Trident strategy. Good growth prospects for this area.

It could be better, but it was an opportunity where the percentage of capital growth isn't as high. So that's why we're considering whether or not to flip this particular property. So we had to change our strategy just because we weren't meeting properties that met our criteria. A lot of the properties we are seeing, they were hitting just realestate.com they're all going for the 460 to the 480 kind of mark. So you weren't kind of getting in as early? We weren't getting the properties that we were wanting. So that's kind of created a bit of a change. I think the capital growth is only 4% with a predicted growth, which isn't as great as we want. So that's why we're kind of considering the flipping for this particular property.

And you're manufacturing your equity anyhow, if you choose not to. And just one of the things that you might want to do is. So is it module 3, the census tutorial in Ultimate Guide, Renovation, Ultimate Guide and Renovation?

Yeah.

No, it'd be module two actually.

And module two in your property success club is that census video, which unless you have access to Ripe House, you can go through and actually look what streets have more owner occupiers to renters in it. So you can actually get that feel for whether. Because with a flipping strategy, often with the flipping strategy, you're flipping to owner occupiers. That's the majority of the market. 70% of sales go to owner occupiers. And often if you've actually tapped in and taken the equity out of a property, a lot of astute investors don't want to buy it because obviously they're looking for opportunities to do the same thing. So if you are flipping often, that owner occupier market is the one that you're targeting. So changing your strategy mid purchase sometimes can be troublesome, but just validate the fact that there is a market there and the fact that you're chatting to 60 different agents. I'm sure they'd love to have a sale commission as well and a potential new purchase commission. So get their feedback on what they feel is realistic and obviously take all your costs into account and your capital gains tax implications. But it sounds like there's between a 420 buy price and a 550 renovation price. There is some capacity there as well, so. And the fact you've already seen in the street that you're not topping out at the top property in the street. So a really great good news story, Gabrielle. We love that.

I actually one of the practical things I did was also I started kind of doing research on the street. So I started door knocking, which was a bit scary at first, but ended up being. But you find out so much information. Earlier on you mentioned being an area expert and just I find like you just being friendly on the street and you just approach them and say, oh, we're kind of looking at the area. It's just trying to see what it was like on the street. Is it quiet? Is it loud? You can ask a bunch of questions.

It is nerve wracking doing that, isn't it?

That's excellent. I've heard you Know who else does that? Like John Edwards talks about that as well, you know, talking to the, the chemist and is it the chemist he likes?

It's the pharmacist. Yeah, and Jacob does that too.

Yeah, that's right. I think he talks.

The news agent.

Yeah, the news agents, they've got a different service each. But yeah, I think that's an excellent way to do it by talking to.

I do that in blocks of units.

Yeah. It's also a good way if you're, if you're thinking about trying to buy under market, market, you know, saying you're looking at a house up the street and you might even get someone say, oh well we're thinking of selling our property in the future. So it's a, it's a kind of soft, soft approach, you know.

Well, it's funny, I spoke to a, had a discovery call with a lady the other day and actually from my old stomping ground Pre Dubbo was Copperty down in Camden. So I grew up out there on Gled's Wood Stud and my father was a farm manager on a pig farm there before that. And yeah, she actually did something very similar but she did it all by hand because her parents were looking to move down to the area that you're talking about, Gabrielle, and she used RP data and went through and actually highlighted where the three bedroom houses were and looked at. And some of the strategies that we've shared in the tutorials also is if you find the type of Property you want, 800 square meters, three bedroom house on a corner, you can create your own territory. Whenever the property comes on the market, you can be notified but you can take it a step further and actually, you know, if they don't have their privacy, do not disturb information on them, you could door drop, door knock or you know, let drop them something in the letterbox. And this is what she did and she actually dropped a letter in the letterbox and the lady rang her and said just today we were thinking about selling, would you like to come have a look? And great opportunity. So deal done really quickly and so fabulous. So there's amazing ways that you can use all of this information.

Yeah, I actually got to visit a few properties that weren't given to the agent yet. It was actually nice doing the door knocking for that reason too.

Yeah, fabulous.

I think that's even better than the letter drops. I only really plucked up the courage to do it. I did a lot more letter drops than I have door knocks but I think it's way more Effective if you can pluck up the courage to do it.

Yeah. And another thing I guess I learned from calling all these agents all this time is you realize some agents are very good at door knocking themselves. So you kind of utilize their skills if you're looking at a particular property. So I kind of want them to search on the streets that I wanted in the end.

And I think what you said about the agents is good, finding out when their meeting is and calling them up afterwards. The other good thing about just doing the due diligence when you're doing that suburb expert approach and going through all the opens is a lot of the agents, probably 90% of them will only call the people on their Saturday list. So on Monday morning they do, or Tuesday morning they might do all their phone calls and they'll literally just go through the people on their list, through the opens at the moment and they'll forget about all of the other people that, you know, like us, that might have given them a criteria or whatever. So just getting in front of them constantly, you know, every couple of weeks at least means that you can get on their list and you're one of the first people that they call. Because that's the world. Yeah, that's the world. The better agents that actually are into building long term relationships, you're in contact with all the time. But a lot of the younger guys or guys that are just made their money out of that short term sale don't really think about the longer term relationships. So best to get in front of them.

Good on you, Gabrielle. Really, really so excited for you. And actually John, you told me today we should have a challenge of actually getting one person a property or one week. Is that right?

Yeah.

And making sure we share some success. So I, I reckon we'll claiming Gabrielle for this week. Yeah, we're claiming this week. Gabrielle, you're in, you're our person this week. We want to help at least one person a week buy a property. I reckon we should step it up, you know, and make it probably 10amonth. But hey, we'll start with a small goal.

Yeah.

So. Well, thank you so much for sharing that with us because I think just seeing the practical use of some of the research and the tools that you have is really great. And I've heard a lot of people who, who have listened to that podcast when we did that whole property review for you wondered what happened. So I'm glad that you've moved on to next opportunity and let us know what you do.

Sounds great.

And if you Renovate. Take some photos for us.

Yeah, yeah.

Okay. All the best, Gabriel.

See ya.

Now, Ali, I see some comments that you're putting in here. I know that I had a chat to Ali during your week and I just wanted to know how she's up for having a bit of a discussion about her experience. Because we did.

Put your hand up if you'd like a chat, Ali.

Yeah, we did a bit of a deal review for us and she's there. Hey, Ali, we're just going to unmute your line and hopefully your microphone's working so you can don't want to disclose anything that's private that you don't want to disclose. So, Ali, how you going?

Good.

Jane, how are you?

I'm good, I'm good. Would you like to share your journey with us all?

Well, I've just only got back from Geelong about half an hour ago. We had. I don't know what you would call it, but there were four of us bidding in separate rooms at the property, initialing off our bids. So that was a new experience.

So this I had a chat to Alice, had a pre approval and she had a bit of a dilemma about this property, didn't you? You've been amazingly driving backwards and forwards from Melbourne to Geelong for a while now, looking at properties and opportunities and this came up and Lisa in the office said, I think you need to have a chat to Ali. We got on the phone and did a bit of an analysis on this property for you because I was going to auction this Saturday.

Yes, but it didn't go to auction.

So were you told to put your best offer in today? And what happened?

Well, I bummed out at five 88,500 and it went to just under 600,000, which I was not expecting. I just, yeah, was really quite surprised. It started off off at 450,000 plus and then I noticed that it increased to 475 plus a couple of weeks later. So I was sort of predicting maybe 575. But yeah.

When we looked over the property in the analysis and reports and things, what was the maximum price at that time that you felt the property deserved?

Well, I was thinking 555. 560.

And was your competition owner occupiers? Did you get a feel or investors?

It was sold to an investor. There was one family there, so there was actually five of us to start off with. One left very quickly and then I was the next one to leave and yeah, so. So just the way it goes, it's part of the learning. I guess.

This was one of these auctions where you all go into the real estate agent's office and bid against each other. Is that the way it worked?

Well, we actually went to the property and we all went into separate rooms and they brought in like just had written down the last offer and everyone had to initially initial off where their offer was. So you could see that. Transparency, I suppose, but.

Right.

So I never experienced.

No, I haven't had that happen to me. Have you?

No, it's at the boardroom.

Uncommon.

Yeah, the boardroom auction where. But you're in the one room, then it's basically where you. If you. Happens often when you put in an offer before auction and then. And then say the vendor's interested and then they shop it round to everyone else that's been through the first couple of opens. I normally would put it in early and then basically they call anyone, they say, well, the vendors accepted your offer, but we're going to put it out for 24 hours and take any other offers that come in. And then if an offer comes in in that time period, then basically everyone goes into the office and you sit in the room across from each other and literally just bid against each other. It's called a boardroom auction. But yeah, I haven't heard of what you've just described other than after the auction, the real auction.

Yeah, well, that's really stressful. So is it back to. Back to the drawing board. You're still looking in that one suburb that you're after or other properties have come up on you, you're ready to have a wine and a bit of a break?

Well, I had a fair bit of wine last night yesterday because I was actually so stressed out about it, but I was a little bit more relaxed today, to be honest. Maybe. No, no. But I think I like the idea of the letterbox and yeah, that might help me because that will not have that sort of competition, that these properties are just so much interest. It's very hot market down there.

Well, with the privilege principle as a diamond climate, we'll give you that access to RPD data for the three months. So make sure that you use it because you can, you can get through and look at the tutorials around those setting up the territories as well. But yeah, it's, you know, I know that we, we started talking about Geelong maybe in February, March with. With Jacob from Ripe House. Yep. And. And I know once again it's been on the hot spotting list that Terry has done. So it's. It's affordable and commutable and there's universities and all the things that are going on down there. You know, I've had clients over the years who've bought and even put in extra rooms and renting per room, you know, a six bedroom property to uni students and getting 8, 9, 10% return. So there's a lot of, a lot of areas. And I think just talking to Jacob last Thursday night, he talked about the importance of being near the train suburbs. Near the train, wasn't it?

He said the train line was very important.

So. But yeah, look, yeah, chin up. I'm so glad that, you know, you let us know you're going through a bit of pain and we could help out with the analysis as well. And you went in armed with a little bit more information rather than just being bamboozled by some kind of weird auction thing and not being confident about your numbers. So, yeah, good job with that.

Yeah, it was great. Thank you very much.

Well, we're here for you, so we want you to be number two. Okay. For the month.

I'm trying really, really hard.

Really hard.

I lost it too long again on Saturday.

Oh, you're inspiration to us all. So first people who say know I have to buy close by. Listen to Ali. She's. She's off commuting with family too. You've got a number of kids, haven't you?

No, no, they're all off doing their own thing. No, it's just me at the moment.

Oh, good. Well, it makes it easier. Yeah.

Well, you might try Gabrielle's tactic of going knocking on the door and saying we're thinking of buying in the neighborhood. What's the street like?

Yeah, I think I will actually try that strategy.

I really like, I really like your, you know, your color scheme when I'm thinking of buying and using something similar. What did you do? Come up with some nice conversations. Right. Rather than I want to buy your house because they might be a real estate agent.

Cat scarf. And you should be right, John. Yep.

All right, I'll try that.

Okay, Ally, all the best. And let us know how you go.

Thanks guys.

Thanks.

Bye.

See ya. Now who do I see? I saw Stacy put her hand up and I don't think she. She saw that whistle.

Oh. And then she's taking it down.

She's taking it down again. Do you want to have a chat.

Stacy, or have you Stacey got something to chat to us about? Anyone have a question? I don't see many hands up. We might actually get out by 9:30 tonight.

Yeah. Yeah. 10 minutes to go. Time for another one. Oh, there we go. Good on you, Stacy.

Okay, Stacy, we'll unmute your line and hopefully your microphone's plugged in and we can have a chat.

Hi.

How you going?

I'm good. How are you?

Good.

Good question.

This is funny. I can't talk long because Hub Bobby's installing some mantelpieces in the house that we're still renovating and he's just gone out. He's just gone out to get some.

Wood and you're just sneaking in a.

Question and I'm still listening to you guys. And he saw me start to type a question into you. He's like, gave me the look. What are you doing?

I get that.

So I backed it off and I dropped the hand. But I was just going to add the little discussion about that regional city you were just talking about because, Jane, you might remember I had a chat with Lisa and. And we got our desktop valuation back. We purchased 12 months ago. 406.

Yep, yep. 406.

And at the time, I was prepared to make an opportunity cost on that property because when you were coming into a season when there just wouldn't be properties available and we had to move.

And you were looking at doing as a home. Sorry. So this is as a home?

Yes, it is a new home. It's too long a story probably for right now how it became ppor, but thank goodness it did. But we just got the desktop. It hasn't been assessed yet by the bank person, but the Desktop came back at 499.

Nice.

And that doesn't take into account our renovation at all.

I was going to say. And you've been very busy, haven't you?

We have been very busy. This was quite a bit. Big project. My husband's come back. He gave me the look, but I'll have to tell him that.

That you.

You called it. Called me out.

Yeah.

Tell you. We saw your name.

He's grinning, Riley, but I leave you.

Alone for five minutes and here you are.

This is dedicated renovators at 9:30 at night are still putting up mantelpieces. You know, I can. I got to.

And it's the room the kids sleep in. We had to move the kids out of the room. They're in another bed and we're drilling through a bit of brick as well. The poor neighbors.

This is what it's all about.

You gotta take opportunity when it comes around, too.

That's right. He's on the job. I'll have to get him A drink after this. So I felt fairly pleased about that. So I was just gonna whack into the question box, Jane, in case you felt like you wanted to comment on that because we were talking about, you know, that area and all of that, we're still going to actually have someone out in person. So we've got a month ahead of us of some pretty hard work.

Yep.

And try and get the reno we've done taken into account because as Lisa said that that doesn't account for our renovation at all. That's just the difference between 12 months.

And that's just the growth opportunity, you know, and seeing that like almost $100,000 uplift in 12 months. Months just, you know, it just shows you how being. And because I know you did the research and you were doing the commuting too, weren't you? With children?

I was, yeah. With, with at the time a two and a four year old.

Uh huh. So you know, we're all, we're all here, we join the journey, don't we John? I know Lisa and Diana and John and I are familiar with many of your personal stories. But, but, and you know, we're the cheer squad on the, the at the back going, yeah, yeah. But I know that you, you really put in a lot of effort to find this property and obviously a great location and the renovation that you're doing as well is going to give that uplift and just a comment about that and why Lisa, the mortgage broker who works with me mentioned the get it all done first because when you send a valuer in to value it if the property hasn't been finished and often some people, they might run out of money halfway through a renovation or they decide to change the renovation script and add the second and story on in the middle of it or do something maybe a. What is a wok kitchen? I don't know if there's many wok kitchens in Geelong but you know, but you know, things change and they want to go back halfway through to get you know, some more money out. If the, you know, if it's a half done kitchen or a half done bathroom, you're not going to get that full valuation as if it is finished. And then often what they'll do is they'll say it's going to take 12 grand to finish this off and you're like, mate, I could do it for three. But they're going to take 12 grand off the value and they're going to make that comment in the valuation document that they give to the banks. So, you know, you want to just be aware of if that's the case, then, you know, you might have to depend on short term lending or credit cards or mum and dad or sisters, brothers or whatever to get the property just to a point so that you can do that valuation quickly and pay down that probably more expensive debt. But you guys are knocking it out of the park. In actual fact, I, I reckon John's on case study duty at the moment. He wants to get his camera and go out and do some case studies. So microphone, microphone he's on microphone, wants to hear about, hear about renovation. So you never know.

I'm dying to put some before and afters up.

Oh, good.

I just thought, I just thought it needed to be a bit more of a complete case study before I did that.

Yep.

Well, we'll be watching before and it's before and afters and there's some durings. But we were very happy with that because if that desktop valve came back from a different lender, which gave us, it did mean if we were lazy, we could just say, yep, just give us that one, we'll take that money we need, we'll do what we're going to do and then we'll go again. But by staying and having a go first and seeing if we can get enough done to stage it well, with a few smoke and mirrors in a.

Few areas.

We can then stay with the same lender, saving one lender move up our sleeve and possibly another one if we were called upon to move lenders a third time in order to get fresh eyes on it and get the top value. It's sort of a calculated risk, but we think it's worth it because if it doesn't come back higher with the eyes on it, we've still got that desktop valuation to go back to.

Exactly. And the thing is that, you know, there's opportunity of taking the money and running and there's opportunity of not doing that. But I think, you know, what you've touched on there is the fact that every time you put an application into a lender it's hitting your credit file. And more and more what we're seeing is those hits on your credit file are actually counting against people for future lending. So I know I had a client last year with NAB and it was an 80% loan to value ratio and they declined the deal even though the person serviced the loan very easily because there'd been 14 inquiries on their credit file in the last five years. And stupidly, you know, I think it was St. George, on one loan application with a previous broker had made had. They changed things and they had hit their credit file five times for the one loan, but they wouldn't overlook it. That was their policy. And, you know, so, you know, you just have to be careful. And Stacey, you know, protecting that credit file is very important and it's calculated risk, but, you know, you've got the fallback position, which is fabulous.

Yeah, yeah, it's very exciting and it helps when you're a bit fatigued from all the work.

I know.

You know, that's encouraging, at least.

Exactly. You do recover. You do recover when you're sitting there enjoying the beautiful renovation. I can tell you.

I just settled in for a cashless period where there wasn't going to be any more renovating. So I'm having to put on my project manager's hat again and make a work.

Oh, good. Well, that is good. And I think that, you know, we. We're. We're keen to hear a recap of how you go when you get it finished too. So we'll be.

We'll be following.

Thanks, Saison. Yeah, tell your husband that it was us, not you.

I'll tell him he's left the building again. I'll have to go and retrieve him now.

Okay, see you later.

Thanks. Good night.

See you.

Bye.

There we go. And Gabriel has kindly said we can do a case study there too. So how's it?

Oh, good, good.

Two more, Beauty.

Excellent. Actually, I had someone come back today saying I missed out on your hotspotting workshop. Can you do one in Newcastle for me? Okay, we'll put it on the list. At the moment, there's a petition going in Perth, I hear, to get us over there.

So.

Yeah, we could be saying it.

Yeah, that'd be fun.

Yeah. So, you know. Yes, John's open to go anywhere for your case studies. Aren't you jumping a plane? Microphone and I'll be good.

Oh, it needs a microphone, a set of headphones and we're all good. So that. Yeah, so that should be tomorrow, actually, the next. The first case study on the podcast tomorrow. A bit of luck, all goes well, but, yeah, so it's. It should be good.

Please rate and review us. Yeah, we've got. We've got our challenge.

Let us know what you think because there's been. If you think about the first four episodes of the podcast, they've been quite different, haven't they? Like, the first one was a Q and A, then we've had two interviews and then tomorrow's one's a case study. So let us know what you think of the four format. And we, given that you're, you know, our community, we. We value your feedback and we'll make changes based on what you tell us.

It was funny, I got a call from my sister saying, oh my gosh, oh my gosh, you don't know what's happened at the end of the end of the podcast. And I let her in on a secret that there's always a bit of something special right at the end. We just. Yeah, there's a few surprises throughout it actually. But yeah, she thought we'd made them the at mistake rather than being a little bit fun.

Tomorrow's one's quite funny with the Suburbs against the Clock, which you think is very, very unfair, I have to say.

Suburbs against the Clock. We are looking for new topics, guys. I know there's a bit of a thread going in the Renovator Network at the moment with suggestions, but I did see someone put up something that had star, star, star, M star, star, star. And I actually thought that meant that the third letter had to be an M, which I thought was really, really unfair, but turned out, turns out it was just. It started with M. So, you know, if you don't help us out with the questions, we're going to have to default to that and no one's going to win. So anyhow, it's all good. Well, I don't know, John. If we've got no questions, we might get.

No.

No more hands up, no more comments. And we're hit 9:30. So I reckon we're all good.

Good. Well, look, guys, for those of you who are listening to this as a recording, you know, there is that 1300 number that if you can't make these calls live, you can leave a message for us and. And we'll be able to listen to your words and play your question and get back to you if you have any questions. I know that there's a lot of activity in the your property Success Club, private Facebook page and the Renovator Network, and there's some fabulous things going on there. As I said, we've kind of not been as active there for the last week dealing with what we've been dealing with, but we really support. Have really heard your support and it's really meant a lot to us because as I said, we consider you guys family. We're on the journey with you to getting you to your Property Success and it's been important to us. So to hear that you're there and yeah, we're onwards and upwards. The show must go on. In the words of Ray yes, yes and we are going to do that. So we might just end it there. We've got a big month coming up where every. We're going to try to get our podcasts out every two weeks. Every two weeks subscribes and that will automatically go on to your subscription thing. I know I'm listening to them time and time again because I'm. I just, I'm loving them and we hope that you love them too. And we've got some, some good stuff coming up in the in future.

Yeah, some really good interviews. Yep.

Six or eight weeks so. And if you know of anyone that you think that you would like us to interview, please let us know. As I said, calls going out to anyone's got six degrees separation. Robert Kiyosaki, he's our number one fish that we are up after and by goodness we're going to do it, aren't we John?

Yeah, well it'll be good. Well then you've got both. If you think of Jan Summers was one of your inspirations and now the other one was Rob.

That's it. So once I've done that in actual fact the podcast is probably done. I don't need no do it no more. But anyhow guys we really appreciate you being here and you know we look forward to seeing how your development proceeds John and an update on that more show and tell and we might see if there's people in the community want to do a walk through and if you are would like to do that probably in the next four weeks or so.

Yeah, we could do that maybe on a Sunday or something like that.

Yeah, that'd be great. Y so that's it from us guys and here is to your property success.