Your Property Success Mentor Call October 25-10-2018

Hello, it is Jane Slacksmith here and my goodness, it's October already and we are here to talk about the Q and A calls and all the questions that you have for October. Welcome to all the new members of our Facebook Club. We are so excited. I think, John, I think We've got over 35 new members this month. So this is a very special Q and A session that we have for my Investors Choice diamond and Gold mortgage clients, for our mentoring clients, the students of the Ultimate Guide to Renovation for the students of Location Masterclass and of course, all of those wonderful people who have made a donation to your Property Success Club and donation to Pippa Lepsy and join your Property Success Club this year or joined your Property Success Club previously. So, John, hello. How are you?

I'm very well. How are you?

I am great.

Now, Jane, there's a couple of things going on here in the background with my Internet. So if it drops out, I'm sorry about that. You might just go off me for a moment and fill everyone in on what you've been up to and then I'll let you know as soon as I'm good.

Sounds good. Well, I might just jump on over to the youe Property Success Club page and just make sure that everyone can see us for our call. Let us know if you're there. Who is about today and oh, Jody Moore says she's going to miss the call. She's at work. Let's just see if there's anyone there. Let us know that you can hear us and we're coming through loud and strong. Now, as always, the information that we share on these calls is general in nature. And you know, we do obviously have this on Facebook Live. If there are specific information that you don't want to share privately, then please keep it to yourself. But we are here to help and we are here to answer your questions and give you all the information that you need and just have a thumbs up that someone in the next room can hear us talking, which is always very good. Now, it has been an insane month this month. My goodness, how busy could October really get? And it's been a really, really exciting month as well. So I've had the opportunity and I'm just going to pull up my screen and show you, but I've had a great opportunity in the last couple of days or week actually to go and talk to so many of my clients and talk to people as well. So let's just have a look at this. I had an opportunity to catch up with Rebecca in Sydney so it's so nice to see clients and go and listen to the stories and, you know, find out where they're up to. So it was fabulous. Checking up with Rebecca. Hi, Rebecca. Hope you're there. We also then had. Whilst I was away, here's a photo of the team. You know, when they. When the cat's away and the mice do play. Having a. I don't know. What were you doing there? Having pizza.

Yes, that was. That was a cruise idea. It was a. It was. I think it was a Friday. Or was it. No, it was a Thursday. Cause you were still in Sydney. We decided going to have pizza for lunch today. So as you see there, the guy's got pizza each and I got diddly squat.

Yeah, well, exactly. So always the caring boss there. So I also had an opportunity to be on the Suncorp Facebook Live panel. So, as you can see here we've got Bill McDonald. You may have heard of Bill if you're from Brisbane. He's been on TV and commentates lots of sports. Shayna Blaze, obviously from the block from buying blind. Gosh. Selling houses Australia. What does she not do? Amazing. And in actual fact, she recorded a lovely little video for the community as well that we will share with you at some stage. Me, Rich, Harvey. And Rich has joined Shayna on buying blind. He is the president of the Buyer's Agents association of Australia and a buyer's agent himself. And there's Carolyn, who's the CEO of Terry Shear Landlords Insurance. So lots of fun hanging out with those guys, as you can see. Had a lot of fun with Shayna. Got a few tips and some information. Got some hacks, got some ideas. Can tell you about behind the scene. Had some really.

Sorry, I'd like to hear the behind the scenes. Did you exchange any tips?

Oh, it's funny, actually. I really wanted to know what was going on with the block and what had happened. Here's some interesting things that you may not know about the block. The block finished recording in April. All of this buildup of what's been happening week in and week out, and we're all engaged into the great big auction this Sunday night. When I had a chat to Shayna about it, I was like, guys, you must be very busy. She's like, oh, no, I finished in April. I haven't done anything since. So being on this panel was one of her commitments she had to make. And I said, do you ever go to the after parties, the auction parties now? I don't know. Some of you might actually know this because you follow the block click closer than I have. But type in if you do know there was some block where no one sold. And devastation after three months of their lives. Yeah. So they. That apparently was quite confronting. And she was there for that after party that turned out not to be an after party and it didn't work out all that well. So that was, I think a few years ago now with the Gatwick, which is the property they have now in St Kilda. I've been doing a little bit of research as well. In the last couple of days it was actually bought for $10 million. Now if you think about it, they've put two penthouses on top. John, do these numbers for me, guys. So they put two penthouses on top and they have the units below. So they have unit 1, 2, 3, 4 and then the two penthouses on top. So it was a $10 million property that was essentially bought for the four units. And then they've created complete new construction on top of the six others. They were predicting that these properties were going to sell between 2.5 and about 3 million each. Now those predictions have been sitting there for a while in the market and as we know, the Sydney market is following. Sorry, the Melbourne market is following the Sydney market and has dropped 2, 3, 4 in the last couple of months. So they're not quite sure if they're going to get that. Now if you had, you know, six units at, you know, $2 million, let's just say then, you know, we're talking about $12 million. If we're talking, you know, six units at 2.5, then obviously it's a bit more. But if you add on the complete construction of those two new, that whole new floor, the two new penthouses on top and then all the works that had to be done on the facade. Gotta tell you, John, I'm not too sure. Do you reckon that adds up to making money or not? I don't think there's going to be a lot of cash at the end of the day. If you were going to do this as a legitimate kind of flip.

Yeah, I don't think. Yeah. The beauty of that show is that the ROI is not calculated on the houses selling for a profit. It's calculated on the advertising revenue that they get during the show. So that the houses selling is a bit of a byproduct or maybe a twist in the storyline, but not necessarily main objective.

I see Alfred saying, hello, Hi, how are you going, Alfred? Great. I think you're one of our new members based in Melbourne, if I do recall. So, welcome to the group. I hope you've got some questions ready. Now, I see that in our lobby we've got Melanie that is waiting. Now, I don't see your face on screen. If you did actually have a question you wanted to ask Melanie, I see that you've clicked the link to actually come through. Once we've had a bit of a chat, usually the format is we'll have a chat for 10, 15 minutes. We'll open up for questions and we'll chat and answer your questions or share extra information. So, Melanie, I can see. I don't see your web cam there. Maybe your microphone is working, but. And maybe you don't want to be on screen. And we'll just put a black screen up and we'll get to you in a moment. So I see you there. Anyone else who has any questions, please ask. So I think the interesting thing about the block, John, is that, as you say, the return on investment is not just on the property, but it makes you really mindful and aware of how much money does go in from a production sense into these buildings. And it's interesting. Over 15 years ago, my husband Todd and I, after we finished our renovations in Melbourne, we moved to Sydney and we looked at buying a block in Bondi. So we actually went to the block in Bondi. We went through the entire block. We thought, hey, you know, what are the numbers here? We did the numbers, but the structural integrity of the block itself and all the facade work that had to be done was so significant, we didn't actually buy the block. What happened six months later, very first block. So it was interesting. Yeah. So we actually had the numbers behind it and could see that it wasn't a possibility to have as a viable renovation project. And I think often we have a talk, I know, in the Ultimate Guide to Renovation, John, we often have students, don't we, that want to flip properties. And it's quite confronting sometimes that pricing disparity that they need to really do that and achieve the numbers to actually make a profit isn't.

Is. And it's harder at the. And it's natural that people want to do that. Particularly the aim often is to try and flip a few properties and build up that equity. I guess the irony of that is the lower that you are in the market, the harder it is. If you're trying to flip properties at $300,000, for instance, there's often a very small gap between the unrenovated properties and the renovated properties at that level in the market. And then if you're just starting out, you don't necessarily want to be flipping it higher up in the market because you're then putting more money on the line and taking a lot of risk. It makes it tough, but it always just comes down to that number. And I think this is the way it's done in development. I think it's the only way you can do it when you're selling is just starting with that end number. What's it going to sell for post renovation and doing, as Jane always says, the typical property for the area. So looking at all the open for inspections, working out what you're renovating up to, what's the market value of that price? And not at tens, but at sixes and sevens. So you're not trying to straight level. And sometimes the agent will tell you, oh, no, renovated, you'll get, you know, a million dollars for this. And we've had, remember on the bus tour that time, Jane in Brisbane, and the agent said, oh, that property down there sold for $850,000. And one way of looking at it was like 550. And we think, wow, that's. There's some good disparity there. And so we get it up on RP data on the bus, and it's like kind of Liberati's mansion. You know, it's got a pool and it's beautiful deck. So, yeah, that's a whole lot more.

To get that at that level.

But yeah, and then it comes back once you know that price, it's actually pretty straightforward because then it's just down to, okay, what's it worth now? So what's the current market value or what would you be buying it for? So that's your resale and your current value. Then you go, okay, how much is it going to cost to renovate? So whatever that figure is, let's say that that's, you know, $30,000. How much profit do I want? And you can do that as a percentage or just a, you know, if I get $20,000 or $40,000, I'll be happy. And then from there you just subtract. So you go the. The top figure minus the renovation costs and all the other costs, you know, transaction fees, then minus the. Any stamp duty, don't forget your stamp duty. And then minus the profit you want, then that has to be above that buy price or the current value. And if that works out, it'll work. But when you start running those numbers, when you understand that there's a Lot more properties that don't qualify than do qualify.

Absolutely. And I think one of the things is when we're talking about the block and the TV series, it's entertainment. We look at it, and every week we fall in love with someone or their apartment, or we fall in love with, you know, what they're doing. And the reality is, is that, you know, it's not a renovation show, it's a design show to see people marked down because there's a photo of Shelley in the corner or they don't like the hippo, or, you know, these things are not where people are making profits from renovation. These are design elements that, in actual fact, if you're doing this right, you're actually allowing the people who are buying or renting the property to look at the canvas that you've created and put their own personality on it. So, once again, you know, the block, it's a TV show, guys. It's entertainment. It's been a bit of fun. But the reality is that it's not the be all and end all. So would be my thoughts on that. And I would encourage you to, you know, when you're looking at these kind of TV shows, just be mindful of the fact that, you know, this is really what it's all about. And, you know, be mindful of the fact that, you know, we do have a lot of stuff in the Ultimate God of renovation when we talk about how people flips flop. But let's just hope, fingers crossed, that on Thursday, Friday, Sunday night, that the auction is okay for everyone. Now, as I said, had a great time chatting to Shayna. She talked about renovation from a homeowner's point of view. I talked about it from an investor's point of view. You know, she was very, very generous. And I actually said to her, my husband at one stage said, john, if you become mates with Shayna, never invite her to our house, because what is she going to say about how we've renovated or what we've done? And I joke, and I said this to her, and she said, I never judge unless I'm paid. Pardon me?

You would get that too, don't you? I get that with my friends. They come over and they say, oh, we're finished now. Don't be critical of us and say, no, I would never say anything.

Exactly.

I'll say that to Eileen on the way home in the car.

Too funny. So, yeah, no, absolutely. We. Well, she doesn't judge unless she's paid. I don't judge until maybe after two bottles of wine maybe could have done.

This a little bit better.

And at that stage I'd be probably judging myself. And they're going, oh, I should have taken your ideas. But anyhow. So Shayna, here's a little thing that most people won't know about. Shayna. When we went into hair and makeup, John, you know, we were told to turn up at 9, 839 for hair and makeup. And. And we were going to be filming till 9 o' clock that night on the very first day. So I turned up dressed and I think at some stages people weren't quite sure if I should have. If I was actually in the outfit that I should have been in or not. But I was told that I wasn't actually asked if I was already dressed or not, which is polite. But Shaida turned up at the makeup and she had the makeup artist there. And we had these famous makeup artists over the two days. They were very nice, but they actually. The funny thing with the makeup artist was that, you know, putting on these fake eyelashes and things. Shane has pulled out this fake piece of hair and her. Her ponytail is a fake. There you go. Heard it here first. Yeah, that ponytail is a fake. So I, I was quite excited about that. I told. I think I've told my husband about three times and he's gone. Seriously, I'm not interested, but I know there's people out may actually be interested in the fact that Shane is a painting towel is a pain. Anyhow.

Now that you let that out of the.

All right, so some other little pictures that I have here. I wanted. Oh, I'll bring this up in a moment, but we've just released our Renovate for Profit the Room by Room Guide, John, as an ebook. And we would love for our community and for our students to share this with people that you think might benefit from it and might actually be thinking about renovating. So we would love for you to share that. I'm going to put a link in the notes below, but please look out for that because we're quite proud of it. And we're really excited, John, because the reality is we've actually got five case studies of recent students that have done some amazing things and we've looked at it room by room, literally.

Yeah, it's great. It's a timely thing. We're in the. Obviously. Or not obviously. Some of you may not know that we're in the lead up to our ultimate guide to renovation opening for enrollments, which happens once a year. This year it's November, and so part of the lead up to that as we're putting out different bits and pieces. One of them is this book. But what the conversation has been interesting this time around, Jane, I guess particularly with lending restrictions and the uncertainty in the market is people using renovation to put up the rent. And I think every case study in that book, and quote me if I'm wrong, or don't quote me if I'm wrong, but has gone up by at least put $120 each week to the rent, which is obviously a big deal, particularly if you're only on a couple hundred dollars a week or something like that to start with. So yeah, I think it's a great. You often think of, you always think of renovation or lots of people think of it to sell, but you obviously mostly think about it to add the value to the property. But don't forget the rent component. You know, if you can add 100 bucks a week to the rent, then that's brilliant.

And you know, if you're thinking you're making $2 for every $1 that you're spending immediately for the renovation potential and you're pushing the rent up, we know that as John said, the, the servicing ceiling is getting tighter for a lot of people. So going back and we talk about the refresh, the repair, rejuvenation, restructuring, revamp renovation. The revamp renovation is looking at your current portfolio and seeing what you can do. And a lot of people leave money on the table there, John, in not pushing up the opportunity to do a renovation in that space. So I think there's some really great opportunities for people to, you know, get involved and look at the current portfolios, look at how they can push up their rent and push up the value of their property. Because you know, as we know, good times come, bad times come. There's chaos in the market, which I will talk about in a moment. But still haven't finished my exciting week. I have to show you all my other people that I've met. But we've had a lot of, a lot of excitement happened here and talking about putting this ebook together for a long time. So we're really excited to share some of those people and guests with you. So once again I caught up with Reena. Rena's been a long time mortgage client for over 10 years. So in Sydney had an opportunity to have people drop in and catch up. So Rebecca and Rina said hello to them. I don't know if any of you ever saw Issa Shanger who has some property education courses caught up with her and her darling little harp. So we had lunch together as well, which is fun. And then caught up with Victor Kumar. And Victor has a brand new book out. So Victor gave me his book. I was very excited about this. He's got some very interesting thoughts that I'm investigating at the moment. He's even signed it for me. He was really embarrassed when I asked him to sign it for me, but he did. To Jane, the steady person in the industry. So there you go. I'm the steady person in the industry. Been called meat and potatoes steady. I'm happy for that low risk profile. So no problem whatsoever. So, yeah, so that's a really interesting read. He's got some interesting thoughts around paying off your investment debt first before your own occupied debt. So I'll be spending a little bit more time chatting with Victor around that in the next few weeks. But yeah, so watch this space as well. And then I had caught up with Kylie Davis and our colleague might hear on Real Estate Talks podcast. She's doing some tech spots. For many years she was marketing manager at CoreLogic. She's not with them anymore. But great catching up with her as well. So had a fabulous week in Sydney, John and the Suncorp panel. If you actually go to Facebook, I can show you, if you want, how to do that. But if you go to Facebook and you actually type in Suncorp into the information at the top, you can go down and check out the video of Shayna and I live. So we've now had 89,000 views of this. 36,000 people watch this live, which is insane. That's Shayna Rich and I having a chat. We talk about all the things around renovations. There's renovations, hacks in there. There's discussions on the market and what's happening. We've had talks wrap around the country and had, you know, talks about, you know, what's happening in the market, what's happening in finance. We had, you know, many conversations about renovation hacks and conversations about how people can get into the market as well. So get in there and have a look at that video. That's pretty exciting. I've been on.

Looked like a huge event, Jane, how many people were at it?

People who watched it live? There was 36,000 watched it live. So it was incredible event. So as I said, you know, the first day we filmed from 9am or their hair and makeup from 9 till 9. And we filmed a couple of other pieces for some of suncorp's other alliance partners. They own Terry Sheer, they own Apia. I Felt a bit confronted, I have to say, John, talking on the Apia One because it's insurance for over 50s, but I'm going to be 50 in 2020, so, you know, I might have to face the fact that I have some opportunities. Interestingly about Suncorp, if you're a Suncorp client, you know, they've got all of these discounts at many different places, including Dan Murphy's and petrol and. Incredible. Being a Suncorp client's not such a bad thing. And obviously discounts on Gio and all of the different insurance products. So we did that and the next day we went in and prepared for the panel. The panel was live from 7:30 to about 8:45. We had a live studio audience as well, and it was a cast of thousands doing amazing things and copywriters and people helping out. So it was interesting being part of.

Was more a studio audience going out to all of those people.

Yeah. So the studio were only there to actually make us feel that we're actually talking to people, I think. But we were at the Pitt Street Mall in Sydney's Discovery. Suncorp's Discovery corps heading there. They're working with one of the homeless groups where you get free coffee, free wi fi they've set up. Basically, to me, it looks like a shared office space where people can come in and work. So it does not look like a bank at all. And it's a really impressive space. So jump in and grab a coffee on your way. The Suncorp Discovery branch in Pitt Street. So, John, some other things that have been happening this month. Elephant in the room. I was a guest on their podcast. It's out today, so you'll hear a lot of conversations there. Lots of chatting about renovation and how people getting it wrong and how some buyers agents haven't really got it right for their clients as well. So Veronica and I had quite a bit of a chat around the fact that I'd been working with a number of clients and students recently, and we've been looking at their portfolios and their portfolios haven't really stepped up. They may have got into Gladstone or Port Lincoln or Devonport on the advice of a buyer's agent who was also getting in there. But the thing is, those buyers agents got out and left their investors in that market without telling them to get out. So we have a bit of a confronting conversation about. About that. And, and John, we had a pretty exciting experience this month as well with the winners of our done done for you competition.

Was that this month. Gee, it has been a Long month. Yeah, that was great. It was, you know, the funniest part. I'll fast forward to the end there, Jane. The funniest part that stuck out in my mind about that was they were in Sydney buying in Melbourne using our done for you service with the buyers, the buyer's agent that we'd concierge the whole process. And inside of three weeks, the whole thing was done research. And the response that came back after they kind of signed on the property was this doesn't feel right. Like something. It feels like something's missing or something's weird. It was very unsettling for them to. Because they'd seen their mates and they'd spent months of turmoil and had the whole bit and they were signing on this property and it was a brilliant property. The buyer's agent said he hadn't seen a property like that in that area for three years, he said, at that price point. And it was just a combination of things that certainly we can't take credit for. But the market had had a couple of bad news weeks in a row. There was similar properties on the market at the same time. And this can happen. So you've got competition running across the. Both properties. And then both of them passed in because basically everything was passing in that week because there's uncertainty in the market with all of the media thing. But Shortly after, the 60 Minutes thing had ran and yeah, and he's. He secured this property under market in a really great position. All of those ticks that we always talk about, 30% renters, you know, right near public transport, though, commuting to the city. The potential renters. So brilliant, brilliant, brilliant property and unsettlingly fast for the. For the new owners.

I know. And what I really loved about that, you know, we delivered the research brief that essentially said within, you know, with these are the three suburbs. We then delivered the suburb, the streets in the suburbs. We interviewed, I interviewed, you know, three to five buyer's agents. I appointed a buyer's agent on the. So they got the research brief on the Monday, the Friday, the buyer's agent was appointed. On the Wednesday, he came back with six properties. I got rid of four. He inspected two on the Monday, there was an offer on the one insane, especially because I've been looking for a year and now they beat the market. So, guys, I think the message that I want to give to you here is right at this very moment, and please take a second to just think about this. The market is in confusion and chaos. We have seen clearance rates below 50% in some of the biggest capital cities in the last week. By May, there will be an election. And having heard some information that came from Shorten's office last week, they are out to get the property market and investors. There will be negative gearing changes. There will be capital gains tax if labor gets in. This is a significant issue for a large majority of the 2.1 million property investors out there. But what more so is, is that if these changes come in post, May or post, whenever they announce this election, what will happen is that it will push all of the investors who are a, you know, realizing that interest rates could go up and this is the most that they can ever borrow, that they currently have borrowing capacity for. And then we've got the changes to negative gearing and capital gains tax. Remember, if these changes come in, they, they call it grandfathering, which means that if you have a property now and you can claim negative gearing, you're good. But if you buy a property after May next year, that's when you're in trouble and you come under the new changes. So what I think is going to happen, John, is we're going to get all of these people who are in confusion at the moment and not taking the opportunity like some of our students are doing, which is amazing in buying in this confusion. Time come, you know, February, March, people are going to go, oh my God, I have to buy a property. It's going to elevate the market once again artificially until the election. And we're going to see a period of time where it will be hard to get back in the market again. So, you know, I'm talking October, November, December, January, February. You know, we've got five, six months, guys. I don't care what the market is saying and clearance rates and you know, the market might be dropping 2, 3, 5, 10%. Whatever it is. We're talking about long term purchasing decisions here and long term purchasing decisions allow us to take opportunity. So get in and take advantage of this confusing market. There are so many exciting opportunities for you.

That's really interesting because there are, if you think about it, there are a lot of people that still are in a position to buy. There are a lot of investors that are. And yeah, you're right. I mean, nearly everyone we speak to is hesitant and they're thinking, you know, particularly with the doom and gloom in the media, even experienced investors are thinking, is it the right time? Is there going to be a big change? So people are definitely worried. There's uncertainty in the market and it makes a huge difference. I remember when we're doing due diligence on one suburb and going to the auctions each week, we would see the properties pass in on a week and fluctuate on a weekly basis based on the news reports that week. You know, you'd have a couple of weeks, and this was in 2010, so you'd have a 2010-2011. So you'd have a group of a batch of weeks where there'd be all bad news, you know, the property market's going to tank, blah, blah, blah. And all the properties would pass in and then they'd kind of get negotiated after auction. And then the mood had changed and no, no, we're good again now. And then, you know, and then you'd have clearance rates back up at 70, 80%. So it's amazing just that market confidence.

Absolutely.

That can mean 10, 20, $30,000 off the price of the property for no other reason that there's been a bad Newsweek Trident strategy.

Buy below the market. This is your time now to be buying below the market. There are opportunities. So, John, one of the other things that people always ask me is where should I buy? And I think I did some analysis. So every single month the suburb selector software that you have in Location Masterclass and the ultimate guide of Renovation is updated with information powered by SQM Research. And it obviously comes in the suburbs selector software format. I get the behind the scenes 8 and a half thousand suburbs of the 15,500 suburbs in Australia to play with the data. And I've been playing with the data in the last couple of days, John, in preparation for coming up with my suburb of the month for next month. And because you are our valued and very special club members, I think I might even give you a preview of it. But John, I'm just going to share with my screen now. I did a bit of analysis on the suburbs that and I'm not sharing with you the suburbs. So I'm looking at the top growth that has been in the last 10 years on the suburbs of those eight and a half thousand suburbs in Australia. I then sorted by vacancy rate and then I sorted by percentage of renters. Now check this out. In the top 10, you know, we've got Sydney, Sydney, Sydney, Sydney, Sydney as the suburbs, Geelong and Melbourne. And in the next 10, we've got Newcastle, Sydney, Sydney, Sydney, Sydney, Melbourne, Melbourne, Sydney. In the next 30, Sydney, Sydney, Sydney, Sydney, Melbourne, Sydney, Melbourne, Sydney, Geelong. And in the top 40, Sydney, Wollongong, Melbourne, Newcastle, Melbourne, Melbourne, Melbourne, Melbourne, Melbourne, now just calling it here, John, is that when we're talking about where to buy, success leaves clues. So where there has been people buying in areas that had the population growth, the income growth, the infrastructure spend are in these states, the Sydney, Melbourne, Newcastle, Geelong, you know, you don't often see Hobart, Brisbane, Perth or Darwin appealing there. So I just want you to be mindful the fact that you know, we're looking at where, and this is, I've sorted this by the last 10 years growth. Now I'm not predicting that any of these areas are going to go up in the next 10 years. I'm just saying that they have the indicators that show to us exactly what has performed in the last 10 years. And these you have to say John, they're the population hubs.

Yeah, yeah, they've got all that good stuff going on.

Where is the most confusion in the market at the moment? Sydney, Melbourne. So I think there's opportunity guys and I'm not going to go on with it any further but just let you know now anything else you bring up to John that you want to add in.

Now I just wanted to finish off on that software because since we started getting however long it's been a couple of years now since SQM started updating that regularly and we get that beautiful spreadsheet that we can play around with each week, it's meant that not only do we play around with it more but we get to see those patterns like that. And it's great when I like the exercise of just running that first pass criteria that you use so 30% renters, you know, minimum number of sales and we typically set that at 70 just for the first pass. And the vacancy rate. Right. Is there another one that I'm missing there on your first. I think that's it.

And then we're also looking at, you know, it has to be a house, it has to have had.

That's the first criteria that you set and we just hit a button and off it goes and searches and it just brings us back all the suburbs. So if you're a completely agnostic investor and you just said okay, well where's the best suburb to park my money? Regardless of where it is around the country, that's where we come to it from. And it's a nice, it's a really gives you a lot of clarity in how you think about landscape.

I'm just putting it on the screen at the moment John, just up to step three of the suburbs like to software just showing people what the information.

Looks like yeah, but they're the suburbs that you. Or not the suburbs, but the areas that you read out there are typically the one that we're seeing coming back. We're seeing coming back those, you know, up to a certain level we're seeing the major regionals coming back like the Wollongongs and the Geelongs and sometimes a little while back it was the Newcastles and then you know, further up you go, you get those really good Melbourne suburbs, Sydney's higher up again. But yeah, it's just interesting seeing that those patterns keep on coming through.

It is. And I mean I've just run a really quick analysis on a suburb at random here in Melbourne, Coburg north and you know, just getting through the information and understanding the importance of things and one of the big mistakes I find people make is they get this suburb, they love it and then they go, I can't afford the house so I'm going to have a unit for instance. So if you just look at the suburbs, select a software information here. You know, the number of units is so small there but they think from a pricing point of view it still stacks up. It's not the typical property. The typical property is a three bedroom house. So I think, you know, just the information about, you know, days on market, they're slipping. You know, there's things are selling faster, there's more stock on the market, the vacancy rate, there's so many things in here. You know, we talk through obviously location master class and in the ultimate guide of renovation that you have to be aware of. But you know, it's just about doing that analysis. So you know, I really encourage you to go through and do that analysis. So there you go. Okay, John, so let's see if we have, we've got a couple of questions here. Yes, I've got a couple here.

I can start as well.

Yeah, sure.

The first one is from Kari who says I'm not an Australian system citizen. Am I able to get low interest loans to obtain a property, then get ownership to renovate or is there another way? Will I be able to operate your system from Perth?

Okay, so first question is about I'm.

Not an Australian citizen, am I able to get low interest loans?

Yep. Okay, so I guess. Sorry, was it Carly? Yeah, Kari, really good question. I guess the thing here is that there's changing policies with lenders all the time and every lender has a different way of assessing you. Being a non Australian citizen is an issue in borrowing in Australia. Having a visa. If you're working in Australia that you're going to have a visa. Different visas allow you to borrow with different lenders. There's some lenders that are more attuned to having overseas type of income or people nationalities. So for instance the city banks and the HSBCs, etc. And some of the largest lenders as well. It just depends on what visa you have because you're going to have to have an income to prove that you can pay for the property. Can it be a low interest? Well, it depends. Some lenders again to put on a higher interest rate if you have an interest only loan, if you have an investment loan, as opposed to if you had a principal and interest home loan. So it really depends how much the interest is. But the question really is, can you get into the market if you're paying an extra half a percent and it's costing you 1500 dollars a year in extra repayments by being in the market and having a great quality property, then you know, it shouldn't even be a question about the interest rate. So you know, talk to your broker or see, you know, maybe we can help you or maybe go to branch or try one of those lenders. But just know that when one lender says no, it doesn't need a hard fast no for everything. The next question I think John, for Curry was can I run this from Perth now? Great question because we have Sarah now. I'm not sure if Sarah is online at the moment. If you are Sarah, hook up your webcam because I know you've got a question, but Sarah is from Perth. I had a chat with her on Monday. She's over here in Victoria right now looking for a property. She's doing, she's done her dot map. John, this is like I love talking to Sarah because she did everything as we told her to do it. She did the dot map, she came up with, did some reports, she came up with the suburbs selector software, she did her analysis. So she did 90% of what she had to do. Then she flew over to Victoria, she went to the three suburbs that she had shortlisted. Now her analysis was perfect. In one suburb she could tell that there was pricing disparity of people buying at around 450 and selling at 750, 650 to 700 actually. So there's a lot of pricing disparity in there for renovation. She did see in the same suburb that they were buying at one point and that the structural Renovation had an 800,000 sale price. So there was also that of availability in another suburb that she looked at there was actually, there was different zoning, so depending on how big the block was, they needed either 300 meters squared or 500 meters squared to build a house. There was opportunities to subdivide. So she's done all of that analysis, gone from all of those suburbs down to, you know, all that in Australia down to the three suburbs and done this extra analysis to work out how to do it. And as part of her deal review as a Golden Gold mortgage client, I looked at two of her deals yesterday and did an analysis on them. And she's got some really great properties that she's looking at.

Jane. It's great that she went into those suburbs with an open mind of looking to see what's there. It's so easy to go in with. You've chosen a subway, particularly if you've done a lot of the online research and you've invested a bit of time in it. And then when you get on the ground to keep on doggedly pursuing a strategy that may actually not work. When you have a look on the ground. In her case, she's seen that there are different strategies. She's identified cosmetic, structural and then potentially a subdivide there as well. It's good that you're not trying to put square pegs and round holes, that you're actually looking and recognizing what's there, not what you want to be there.

Exactly. Now, I've just got a quick little question here. I'm on a phone call. Can I ask a question, please? Yes, you may just type it in and we will get that question. Now, John, what I wanted to share with you here is actually the question that Sarah had. She wants to know if she can do a box on the back on this type of property. So I've got a picture up here on the screen of the back of the property and she's interested in potentially adding a box on the back of this. So have you got some thoughts about the requirements and restrictions around adding that box in the back?

Yeah, you certainly can. You see down the bottom, the little lean to off the back of there, but you see down the bottom there's a red board, sort of barge board or a plinth board. That's generally about where the floor height is going to be. So. And if you took from there up to the underside of the eavesdrop, that's about the bottom of. That's the. Sorry, that's the floor height. Underneath the eave is the ceiling height. Now, that's the kind of critical measurement to do the style of box on the back that is shown in the Ultimate Guide to Renovation.

Now, Josh, just confirming, am I going underneath that little lean to. To the eave or up to the main pitched roof?

No, go right over to the left.

Yeah.

Unfortunately, we can't see the very right hand side. But if you look over to the left of the picture, ignore the lean to. Over the. So ignore the lean to. There you go. You were in the right spot. Yep. So that's the underside of that eave is around about ceiling height. You know, it's within about 100 mil. And then when you can see where you can see that red board at the bottom, that's roughly the floor height again within that 100 mil. So that distance there, you want that at least to be 3 meters. And the reason that is is because by the time you. We use a, what's called a pozi strut, they're typically about 300 deep and they're going to span right out, you know, maybe up to 10 meters to create our box on the back. And what we don't want is after we've taken three meters and then another 300 plus plaster and everything, that might come to 320. Then you end up with a ceiling Height that's around 2.650 or 2.7, ideally. And that's a nice size for a big open plan. Once you start getting lower than that, down to 2.6, it's probably about where I think that's getting about as low as I want to go. Once you get to 2.4, it starts feeling very, very low for a. For an open space, the ratio or the proportions don't feel big. And it feels like one of those bad kind of 1970s, 1980s Renault where you can, you know, reach up and touch the ceiling, basically. So 2.4 is literally just above hand height for someone who's, you know, about five, eight or something like that. So I'm working in feet and meters at the same time. James, measure humans in feet and ceilings in meters. But yeah, so that's the way go back and have a look at that picture. So that's. Ideally you want an internal ceiling height of about 3 meters. That picture, though, is what. What that is called as a gable end and often might not be the case here. You'd want to quote it both ways. But often the easiest extension to do with a gable end like that is to simply continue that. That roof line exactly the same. So you have. What they do is you have. And this might not be the cheapest way. It's just, it's what I would explore if I was working with this property. Because if there's going to be messing around with ceiling heights and it's not quite going to work, what you could do is you have trusses made up and that's the triangle piece to exactly the same dimensions as those current trusses. And then they. Basically what they do is they rip off those fascia boards and then they just continue the trusses for as long as your extension is and the walls and it's like. And afterwards you can't even tell there's an extension there. So that's another way that you would often extend that type of property. But nine times out of 10 that's going to be more expensive than doing it. The the box on the back way which is shown in the Ultimate Guide.

And there's blueprints for that in Module 9. Just in case you're in the Ultimate Guide to Renovation and wondering how do you do the box on the back? So Sarah, I hope that answers your question and if you have any more questions, let us know. But good luck with putting in your offer and we're really excited to hear more about how you go with that.

Yeah, please keep us updated, Sarah. The only other thing that I've mentioned there, Sarah, is just the land level. If the block's sloping up at the back, that can be troublesome for a box on the back because again that ceiling height becomes an issue, means you're going to have to remove, dig out the block if it's falling away. Much, much easier because it's very easy to have stumps or a slab absorb that fall. But if it's sloping up then it makes it difficult.

Great. John, do you have any other questions there?

I do, I do. Let me just pull them up. Ok, so this is from Chris. Chris says I'd really like to flip properties rather than hold them and I'm keen to know whether you offer guidance in that regard. If so, how much time is spent on this aspect of property investment. I realise the information on property location, how to renovate, what to spend, etc. Would probably be the same for investing for a portfolio versus buying and selling. I hope you can answer this for me, Chris.

Okay, so Chris, I think there's a couple of things that I want to address here. Obviously you're probably seeing that we are going to be opening our once a year enrollments for Ultimate Guided Renovation very soon in November and you're wondering about the course of and how that can satisfy your needs as a flipping strategy. And you also have a question around location and you're making the assumption that location's the same whether you flip or whether you're actually holding the property. So the first answer is location is everything. And in the course we go into a lot of detail on location and hence, as you can see in the suburbs, like the software, we give you a lot of assistance in that. However, when it comes to location for a flip as opposed to of location for a investment property, it's actually completely different. So you'll see there'll be a tutorial there that I take you through the census data census site and I show you how you can do analysis of where the renters live for someone who wants to buy and hold strategy, or buy, renovate and hold strategy. And keep in mind people who buy properties with the ability to renovate don't always renovate them straight away. There might be a great tenant in place or they may not have the money, or they just want to have the capacity for a wider market when they come to sell, to be able to sell to people who want to be able to renovate as well. And we see whenever the block kicks off, properties that have the capacity to renovate often start selling for more than those that are actually renovated. So watch for that one. So location for a flip is completely different. Your major market is 70% of the population and that is the owner occupiers. So you want to know, and when we go into the suburb selector software, you want to have a look at, you know, who lives there, those demographics, Is it mum, dad and the kids? Is it just mum and dad? Is it where. How do they get to work, the transportation, you know, what the typical number of cars are for that demographic, what their average age is. You want to know exactly who that target market is. And then you want to buy in the streets where the owner occupiers live. You're not buying in the same location. The other thing is when we're talking about the Trident strategy, buy below the market and a good growth area and renovate to add value, the growth component of that area is a little bit different for you as well. When we're looking at growth and we're looking at a 10 to 15 year hold time for our buy, renovate and hold strategy as a part of opposed to buy, renovate and sell strategy, we're looking, when we're doing the dot map at the next areas, the ripple effect. So we're looking at a 2% increment difference between one suburb and the net next. When we're looking at the 10 year capital growth, I bet you're happy that we're recording this so you can go back and think about this later. But so for the investors, we're looking for that ripple effect. So a difference of around about 2% the capital growth over the last 10 years. And for those of you who keep getting confused with your investment property magazine and you don't have access to suburbs like to software, it is the average annual growth rate that is the 10 year growth. Just remember that. Okay. But as an owner occupier, you actually want to be in an area where there's a market and where people are currently looking and where there's a bit of activity. So you're also, you're actually, you don't need to limit yourself to where there's a 2 position increment between the 10 year capital growth, but maybe a 1% increment. You want to see, you know, an area that is actually moving at the moment. So location is completely different. The next question. Well, John, maybe you can address the next question about the ultimate go to renovation and flipping and how we cover that.

Yeah. How much time we spend on it? A fair bit. In fact, even though it's not the primary strategy that's advocated, we really felt a duty of care to give as much information as we possibly could about it because we've seen so many people get it wrong. And that was part of the reason we made the course in the first place. And at the time we put the course together in 2012 in version one, I was just off the back of flipping properties myself. I was just transitioning over to property development at that stage. So there's a lot of information about it in there. In fact, if you're in the Facebook group, as part of your property success club, I'd encourage you to ask some people who have done renovations. There's lots of people that have done other courses just on flipping who have come and done our course and said that it's far more comprehensive. That aspect of it is far more comprehensive alone. So in terms of how much time is spent on it, everything that Jane just talked about in terms of the location, the feasibility aspect is very important and applies to both hold and sell strategies, but it's particularly critical for sell. So there's a lot of time spent on how to do the feasibility. The quick quote calculator is a tool that we developed for that which was originally developed for flipping. So that goes through and has all of the items and the prices of the items. So you can do it room by room and work out how much renovation is going to cost before you buy the property. And then even through to the selling of the property. There's a lot of information there. And again, the techniques that we used in development and then in renovation and then updated as we were doing it with development, but in selling the property and how to present the property, how to choose the agent to list the property, even things down to, you know, the cinnamon loaf in the oven and staging and all of that kind of thing, and how to take offers and how to accept offers slowly in order to get the best price. So I would say there's a lot of time spent on it. It's a very, very comprehensive course. If you took that section out, it'll be a comprehensive course on its own. Yeah, that's right, yeah.

Oh, I've got some feedback.

So, yeah. But I think I will go back to the.

Can you hear me?

To answer the question, the start of the call.

Interesting.

Can you hear me still, Jo?

Yep, I got you. So I think it's just that I had the Facebook page up, so I was listening to myself twice. Yeah, yeah, I just want to say. Oh, yep, go on.

No, I was just going to say to Chris, what it really comes back to is that feasibility, I mean, we obviously teach in the, you know, step by step, the bits to do in the renovation, the areas to concentrate on the house to add value, you know, the kitchens, the bathrooms, the street appeal, all that kind of stuff. And we've got lots and lots of techniques, color guides, all of that kind of thing. But what it really comes back to is that feasibility at the start and those three critical numbers, which is the resale price, the current value and the costs. And then obviously what's left over is the profit. So if you're doing that, you're in good shape. And that's where we spend a lot of time in the course, getting that right.

Perfect. Okay, so some other. We've got a question here. Someone said, can you unmute me? If you just click that link that I've put in the comments and come on board. Sorry, Melanie. We lost Melanie a while ago. Hence why I didn't put you up. But Melanie, if you have a question, please come back to us. And that link is the one that I've just put in the comments. John, we had a question from Mark who said, will the new property laws changes?

Will prices drop after the new laws?

Yeah, look, it's really interesting some Modeling came out yesterday from one of the real estate institutes around the fact that the assumption that negative gearing capital gains tax was going to have no effect on prices. They came back and said there'll be substantial effect on prices. They also came back and said that they had some issues with the. What did they say, John? They said that it was the number of jobs would go the first home buyers market would, which is quite high due to all of the benefits at the moment could potentially drop. But also the banks and the RBA will with all their their changes in lending are also quite concerned about the fact that they might have to be more attentive to the fact that investors are going to be back into the market quite in the early parts of the month. So we might even see some tightening of lending. Even further tightening of lending and less people buying could also make the market drop as well. So there's a number of things but I'll put a link as soon as I find it into the page and you'll be able to see that article regarding the latest analysis on. Yes, they do believe that there could be some price drops if it all goes ahead. However, with enough of an undercurrent I think that the government's going to have to listen quite, quite well John, someone's saying okay, all right. So someone's saying they. So they can't get into our link. Just a little heads up on the can't getting into the link. If you go you are obviously not on your computer. You're probably on a tablet or something. If you go to the Belive app on Apple and download it. So just look in the instructions in the top of what I've got up above this video right now of what you need to do. Go up there, just download the app. Once you download the app then go to my link and you will be a guest. So no problem there.

Yeah, I'm just pinning our current we had last month's pinned to the top there Jane. So I've just pinned this month's to the top.

Yep.

So they'll be able to find it because it may be that people clicked on because I know that's what I did when I went to click in before I clicked on last month's so.

Whenever you go to grand finals you know that you don't have the app downloaded and you're on a mobile device. So John, another question.

Yes, got another question here. This is from Alicia. Hi there. Wondering in what circumstances would you sell a renovated property rather than hold it.

Okay. Oh, gosh where do I start? Just for that person who's still having problems with that download, I suggest can you get onto a different device? Maybe they've said they've already downloaded the app or type in your question. Type in your question. Okay, so when would you sell a renovated property?

What circumstances would you sell? I guess is the question.

Oh, okay. I was going to say there's so many circumstances. Okay, so obviously if your strategy is to buy, renovate and sell, you hopefully you're selling. If your strategy is to buy, renovate and hold, there might be personal circumstances that come up that mean that you do need to sell that property. And if that's the case in the Ultimate Guide of Renovation, I think it's module 1110 where you can go and have a look at, you know, our thoughts about staging and positioning that property to sell. Be mindful of the fact that you've renovated. If you've bought to rent the property out, you've renovated that property to be in the space of where in the streets where the renters are, as opposed to owner occupiers. Owner occupiers are going to be over 70% of the market. So there might be a few things that you might need to do. Just put some owner occupiers spin on it. So I'd go and do comparable sale data and then go to open homes of properties that are selling where the owner occupiers streets are and see what they want. There might just be some tiny little extras. John, what would be something extra that an owner occupier might want above an investor? That could be an easy fix.

You mean for the renovation itself, you're selling?

If you're selling and you had to kind of be conscious of the fact that owner occupied, there might be some things around security, There might be things around, you know, if it's mum, dads and the kids, it might be a fence out the front so that you can keep the kids and the dogs in.

Younger demographic with young kids, preschool age and primary school age.

Yeah. And even when you're coming to sell the property, there's things around the street appeal and targeting that first impression as well. So take your goggles off, walk down the street, have a look as if you're approaching your property for the first time and there might just be things that you're missing that, you know, a nice letterbox, some numbers, you know, paint the fence to match the eaves on the front of the house, change the front door. There could be, you know, a really quick little fixes for under $1,000. That actually just presents the property better for renters. You're kind of like, yeah, you may not put all that in place, but unless you're having the property revalued to access equity. But just be aware of those things. I think.

Yeah, because I think that's the difference. Even for renters. When you renovating or presenting it for a valuer, then the valuer is thinking it from a buyer's point of view. So you have to then think about the way the valuer is going to think about that. I guess if you think about from memory, Jane, you only sold one property. What were the circumstances that made you sell that one?

Oh, so we sold a property. There was a Bondi beach waterfront apartment, and we saw that a couple of years ago. So what happened is the body corporate came back and they did analysis on works that had to be done due to concrete cancer in the property. So there was eight units in the property. The concrete cancer, fixing the windows and painting the front of the property was equivalent to an additional $200,000 per unit that they had to contribute to fix the property up. So we're talking about $1.6 million spent. We had a builder go through and just have a look at the plans and the works needed. And he said it was close to $300,000 per unit that had to be spent on the unit. And so we went to our agent and said, so what's the extra value that we're adding? It was equivalent to about $50,000 of perceived value because all that extra work was structural. So we sold that property, obviously. I mean, I guess not. Obviously, some other people may not have done this, but we declared all of the works that had to be done. We knew that we're probably selling to a developer or someone knew what was going to, you know, be involved with the body corporate and obviously sold, you know, 200 or $250,000, whatever, below the market value of what that would have been in the equivalent building next door. Since then, they still haven't done the works. The property's still deteriorating, and we're looking at maybe 300 to 350 or they were looking at 300, 350 for spend as well. So, yeah, that's the only time I've sold a property. It hurt. It hurt.

Never sell anything.

Some people are selling properties at the moment. You know, we sent an email out yesterday just. I had had a chat to Damien just this week, and, you know, he's got four investment properties. One of the Properties coming from interest owning to p and I, two of the other properties in 2020 and it's going to hurt his repayments. Just for this one property coming off interest only, even though the interest rate's lower on principal and interest, the repayment per month is higher and it's about 26% higher. He's looking at selling a well placed property. So, you know, people are selling properties and he, you know, he's done some amazing renovations on his, you know, regional properties, all less than $300,000. So, you know, there's, there's a lot to be said.

Yeah, yep, yep. I'll just add something. I wonder if the underlying. The question is, is a question between strategies, between, you know, renovate to sell and renovate to hold. And on the surface of things I just wanted to add it's easy to think that the rent be the faster route to gain the equity. It would seem more obvious because you're realising the equity sooner. But there's just a couple of complications that make it slightly more difficult and that mean that a well purchased property where you get one lot of equity upfront from the renovation with no transaction costs and capital gain stats and then added onto the capital growth from that can actually outperform buying and renovating and selling, buying, renovating and selling. And that's assuming you're able to buy, renovate and sell back to back. Because one of the hardest things, and I think the biggest thing to crack with renovating and selling is deal flow. And let's assume that, let's say you're in a circumstance where you can actually finance the deals because that's the other problem which Jane could obviously speak to much better than I can. But you need to be able to before you finish one property, have found the next deal and then to be able to at minimum sign on it. So have a deposit down, then settle on that as soon as this property finishes so you can go again. So financially you need to be in a position to do that, which might be one of you is working full time, is on a high income, so you could do that full time because it is a full time job doing that. But the second problem you've got is while you're doing this renovation is finding this next deal, which takes a long time to do. It's a hard thing to do. You're running feasibilities and people talk about looking at 100 properties to get one deal, but it might not be that extreme. But there's going to be a lot of deals that you have to look at to find the right one. And to do that it takes a lot of time. So the people that I've seen that have been able to crack that code of deal flow and they have people coming to them. So as an example, there was a lady out in the outer eastern suburbs of Melbourne who had a company called We Buy Backyards. Without going into her business model of the way she did it, she would advertise in the papers, notice boards of the supermarkets, all of that kind of thing with these signs called We Buy Backyards. And the deals would come to her and then she would explain what the deals were. So that's how she did it. And you almost need something like that in order to have that deal flow come to you. Otherwise it's very hard to get back to back renovations. And what happens is it starts getting three months or six months or 12 months between renovations and then a well placed strategy is buy, renovate and sell strategy. So on the surface of things, renovate to sell looks like it'll be faster, but it's not always faster. It really depends on your circumstances and you need to be able to be able to run the numbers on those based on your circumstances.

Good answer. Okay, so I think also the other thing that we're talking about here, John, is when do you sell? And I've just shared that the experience of the property that I had, that had the works to be done. I'm currently in the middle of another property. I hate strata properties, another unit. And there's works to be done on this unit as well. And over the 18 units there's a million dollars worth of work. So you know, we, some of the people could pay up front, some people could get a loan, we got a strata loans. I've been through that whole experience, which is interesting, but I visited the site last week whilst I was in Sydney and this is a document that the project manager handed me. Just have a look at the depth of information that is in this document. Anyhow, this is the variances. This is another $400,000 worth of work that has to be done on that unit. So I've been through it. Fine, tooth comb. And I've got it back to about 220,000. But the conversation with the rest of the owners is the fact that they're going to have to front up with some more money. So hard conversation, I think it's around about five, fifty grand or so for each at the moment. So another $10,000. So one of those things.

If you can type it in Please do. I think I spoke to you earlier in the week and I let you know we're on the call this week. So apologies that you couldn't get your answer, but feel free to type it in. We've still got a few minutes left.

And John, do you have any questions there?

No, we're out of. Fresh out of questions here, Jay.

That's good because I've got other things to share. You know me don't want to stop talking. Okay. So first of all, I did make that promise that I'll give you a bit of a sneak peek into the suburb of the month before it comes out in our newsletter next on Sunday night, I think.

John. Yes.

And the other thing, there has been some changes in New South Wales and in Victoria around proposed changes around what landlords can tolerate and what tenants can do. And just reading some of them in in New South Wales, I think the five that I read, not that significant. You know, you can only put your rent out once a year and tenants can do minor repairs on their properties, which is not painting, which is my biggest concern of purple wall which, you know, wouldn't look good or the same. They put up picture rails. They put up so hang up pictures etc and make some minor changes. There's a thing around domestic violence. If someone has been a victim of domestic violence, they can change the locks without letting you know and get you the keys within seven days. I think I'm all for that. There is a proposed law around domestic violence in Victoria that's a little bit different. I need to look into it a little bit further. But I think what it says is that if someone's a victim of domestic violence, they don't have to pay rent and therefore the landlord has to cover the rent whilst they're recovering and getting themselves on the feet. So I think that's going to have more implications than what we're seeing in New South Wales. But the ability to have pets is also another thing that's come up. So there's actually 130 changes, I believe, that have been proposed in the Victorian legislation. Now they haven't become mandatory, they've just pass through the first function. But here's an interesting thing. I got an email from my one of my rental managers telling me that my tenants were going to wanted to have permission to have a greyhound rescue dog. And I went back and said no, look, I have and you can see this in the conversation that's been going on the Facebook page. I have previously had said yes, I've had references. We Put the bond up, we put the rent up. And in this particular property, we did allow one of the people to have an older dog who was well behaved and never done anything bad again. And I had to recarpet. After I left, the pee was everywhere. Cost me about $5,000. So I went back, you know, within a day and said, no, look, I'm not happy to proceed with that. And the tenants came back and said, oops, because we hadn't heard from you in 24 hours and there's new legislation and you can't kick the animal out. We now have the greyhound on the property, which wasn't nice. So we went back and let them know that the legislation hadn't changed. And my rental manager's advice was, well, you can either do one of two things, but you can put the bond up by about $2,000 to help you cover for the carpet and put up the rent by $150 to $200 a week as well and see how much they really want the dog. So it's really difficult because, A, it's a rescue dog and it's in a hard situation. B, we've kept the rent down for a while because, you know, they've been such great tenants and really the rent should be higher. And we're in the middle of a rental review anyhow at the moment, but they went ahead with what's happening in the media and got themselves a dog. And getting an animal out of a property is a whole lot harder than just approving one. So involved VCAT and expensive solutions. So. So, John. Yes. Something to watch with all of these changes, with the landlord's laws as well.

Yeah, that is a tough situation, that's for sure, if you can avoid it.

Yeah, I know the people who've been to VCAT hate vcat, so, you know, I can appreciate the fact that that's not something I want to do. Okay, well, I'm going to show you my very special suburb in this spotlight for this month. And just in case you have no more questions. John?

No, I'm all out.

Good. Anyone else have questions? Alfred, please put your question here, put it below the box. I'll come back and answer any questions I can as well. Or create a little quick little video for you and get it to you. Look, every single month I assess eight and a half thousand suburbs of the 15 and a half thousand suburbs in Australia. And this month I did a few extra little things. But as you saw from that spreadsheet, I pulled up one of the suburbs that was in the top three and it was West Geelong. So West Geelong, really interesting. The filters I put in this month was 600 to 1.2 million. I wanted over 30% renters. The typical property was a house. The suburb itself outperformed the average by 10 of the 10 year growth of it. The surrounding city, the vacancy rate was under 3% and I did take it a month a bit further this month. So I looked at the best capital growth over the last 10 years and then I put a couple of other filters on. Now what's interesting here about this, this analysis is only 320 suburbs actually come up within, you know, between a $251.2 million price point. So there's not a lot of suburbs that should get through my filters to start with. Now the good thing about Geelong West John, over 108 sales for the year. So we know that when we're looking there's going to be properties on the market. Now I also just had a quick little look at the lowest 25% of the sale price and the 75% price. And there's indications here that if you did spend $2 for every, sorry, $1 you can make $2 for every $1 you spend on renovations because there's enough capacity there to make profit on renovating as well. So all good information, some snapshots there of the suburb selector software. As you can see, you know, houses are typical properties, 40% renters, median price 690,000. Vacancy rate 1%. Winner, winner, chicken dinner is what I'm putting down there. Obviously once you find a suburb in their spotlight, you have to go and do the analysis of the streets to be in. You have to go and do the in depth demographic study, what people want, what's on the market at the moment, what the comparable sales are, what renovated against unrenovated, if that's what your strategy is properties and renting for. So all that extra work to be done. But it's a good place to start, John.

Yeah, it's awesome.

So that is our suburb for the month. We did Wynnum last month in Brisbane and I'll be looking around for the next one next month. But yeah, all very exciting.

That's great, Jane. Well, I've got no more questions that have come in here. I have a question in the Facebook group.

Here we go, a question. It's on the screen now. My question is I have finished my dot map for Melbourne. Good job. Lots of suburbs. Do I send it to you for review? We are very new to investing and to Australia to start with. So need some help to validate if we are on the right track with the dot map exercise. Okay, so that's a really good question. I'm not going to personally review your dot map analysis, but please, as you can see, please put it into the Facebook group because as you know, I'm in there daily anyhow and you're probably going to get some analysis done.

Can I just say that the reason for that is because there is hundreds and hundreds of students or well over thousands now, so it wouldn't be possible for Jane or Misoft to review on an individual basis. But what typically happens and what we encourage people to do as part of the course, as soon as you finish, put it on the page. Don't be worried about other people knocking it off or anything like that. Everyone's at different price points and everyone's there to help and then we can jump in and give our 2 cents worth there and then everyone gets to benefit from that as well.

Absolutely. And look, the thing is that when we talk about doing the dot map for a buy and hold strategy, we're looking for a 2% increment change. And I might just, might just do one thing. I might just share my screen quickly. John, but we do have digital dot map that we are working on. It may come out in the future, but this is the one that we have for Melbourne here. And you know what you're looking for is you're looking at these legend, you're looking at the legend and you're looking for a 2% difference. So for instance, the purple at 4 to 4.9%, you're looking at a pricing pressure closer to the city of 6 to 6.9. So for instance, you've got these greens here, green, green that are pushing on the purples here, Brunswick east and west. So you can see here that we've got some suburbs where we've got these greens of Essendon and Coburg pushing on Pasco Vale. So this is what you're looking for, a 2% difference or you might be looking at, you know, the difference between a purple and a blue. So we're looking at purples to blue. So here's these purples and you know, Strathmore except etc. Is a 2% difference. So we're looking at this pricing pressure as you move away from the CBD and you know, up here we've got, you know, grades of pinks to wrap pinks and reds and oranges that have got pricing pressure on some of these areas that are down here at 2%. You know, these are the blues. Now the problem with this is you can see here, the median house price is 2.5 million, right? So you know, there could be some reasons why there are some differences. But then, you know, if we just jump over these blues here and we jump into some of these areas here, we've got greens here and you know, we've got greens moving into blues here. So you know, we're looking at Melbourne east and then we're looking at Carnegie and we can see some pricing pressure. So you know, this is exactly the tutorials that essentially are in the, the modules that you're following through. But what you're looking is for that pricing pressure. And what's really interesting, John, is often at Brisbane in particular, you know, you see that ripple effect come out, but then you see those arterial roads as well. And as those arterial roads, as you follow those arterial roads, you might have some, you know, 6, 7% growth here and then you've got threes and fours here, but then you've got some six and sevens as they go, the anterior roads. And that's just because people can actually transport to work a lot faster. So don't be surprised if you see some outer suburbs have actually got really great growth. It's then the opportunity to go, well this has got pricing pressure here and this has got pricing pressure here, then these areas in the middle should be the next ones to take off. So 2 minute dot map analysis there, John.

Yeah, it's those spokes. We love the spokes. Sometimes it's the coastline that's a spoke or the river that's the spoke too because it's a desirable place to live. So yeah, it's good work of saying, oh, what's that growth there for and where's it going next?

So at this stage, no, I can't answer everyone's analysis on everyone's dot maps, but I hope that helps and please post it. And there's a lot other people who are, you know, doing their dot mapping in Melbourne as well. So everyone will jump in and help out. So don't be confused. And I think it's fabulous that you're not, you know, you're new to Australia because you don't have the parochial ideas that people had. When I first moved to Melbourne, I thought Williamstown had opportunity. And the agents kept telling me that no one except lower socioeconomic people lived in Williamstown. It was such a bad idea because the agents were so of the area. So, you know, in years that have Come. Obviously Williamstown's done very, very well.

Yeah, yeah. Congratulations on completing it too. You got in there that was really fast because I know you only joined. Alfred joined up with Location Masterclass a few weeks ago and then moved on to the Ultimate Guide. So he's been taking fast action. So congratulations. You're making good progress.

Actually, it reminds me, John, I had a conversation with one of our students who was at Renault Fest last year. We had an event last year, we which was fabulous. And she started the ultimate guide to Renovation. Needed a little bit of extra help. So we don't do these anymore. Well, you know, it made me twist my arm in many years to come. But the workshop, and we had a one day workshop to help people work out where to buy. She came along to that. She had a list of suburbs. She got down to the streets and suburbs to buy. She bought this time last year. She's renovated over and lived in that property the last year. She's using our home hopping strategy and she rang up this week just to let me know how well the renovation went. She's made money, she's getting ready to sell it. But the thing that really, gosh, John, it was so rewarding. Thing that struck me was that, you know, she'd been through a divorce, she had this money to spend. She hadn't made financial decisions by herself forever and she was really reluctant and worried about what she could do. She got the confidence to take a step which was this. The number one thing, taking action. You know, she came to Renault first in Melbourne, went back to Brisbane, went to the workshop, did the course, she got this. I mean, let's face it, if you added all of those things up with flights and accommodation, she probably spent, I don't know, $7,000, six, $7,000. She's bought a property in the right area, she's done a strategic renovation, she's learned amazing things that she can put in place for the next property. She's at least made $30,000 off this first property at like six, five, six times of what she'd spent on it. And she's got all of the competence to be able to put into the next property. But thing that really struck me the most was she now has confidence. She thought she couldn't do it. She was of an age where everyone's like, why are you even investing or thinking about doing this? And let's face it, we're all of those kind of age at the moment. We were fast approaching it. Yeah. She showed her children that she could do It. She showed herself she could do it. And she has this amazing confidence and glow about it now. I just was like, tick, tick, tick. It's a spirit. One of the most wonderful stories. And I just, I'm just so excited and humbled that we are a tiny little cog in this wheel, that she has a great success that's coming forward.

What's amazing about that too, and Alfred, you're going through the same thing at the moment is once you learn that once you know, you don't have to learn it again. It's knowledge that you've now got and you can use over and over again. It's repeatable process. So that's, that's. It's hard to underestimate how powerful that is. You know, once you know it and you can repeat it, it's brilliant.

And she's making a little bit of money by flipping the property so that she can get, you know, the next one and make more money and the next one so she can hold. But that property is in such a great area. You know, in the Next, you know, five years, she would have made $100,000 by keeping the property. So, you know, it's, it's an amazing, amazing what she's doing. But you know, that suburb selection, the work here on the dot map, the suburbs, election software, the analysis and the tools and the strategic renovation. I mean, you know, this is a new lease of life. I just, I love being part of what we do. Anyhow, we've. Oh, thanks for the kind words. That's fine, Alfred. It's pleasure that we can assist you. So anyhow, guys, I think that we might have to wrap it. Hey, John.

Yeah, I reckon that's about us, Jay.

So please, I'm going to put a link in there to that book that we have on the room by room guide to renovation and making profit from it. We would just love for you to share this with people who would like to learn more about renovation. As I said, you know, we've got a webinar and our launch of the Ultimate Guide to Renovation Education program coming up in November. Please watch for it. You know, it's really exc. Exciting, but we would just absolutely be so touched and just thankful if you could share our message with others that you think might benefit from it.

Yeah, perfect.

Well, as always, John, anything else to say?

No, like she said, well, here is.

To your property success.