Your Property Success Mentor December 14-12-2017

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

Hello everyone and welcome to our final mentor call of 2017. And my goodness, hasn't the year flown by. And look, if you own like one investment property or more, I hope 2017 has been very, very kind to you in the way of capital growth. And if it has, please give yourself a little pat on the back for the work you did when you chose the right suburb where you purchased now, because that's like what we all know here. It's what it's all about, choosing the right property in the right area. And if you're investing in the right suburbs, time is on our side because our money is working for us. Now we have some really big news to share with you on tonight's call and we want your feedback as well. We have some very big plans for 2018 and some significant changes that we want to get your feedback on and we want you to be part of. So I'm really looking forward to sharing with you everything this evening. And obviously we've brought this call forward because of Christmas. We know no one was going to turn up next week with all the Christmas parties, so it's usually held on the last Thursday of the month. So before we get into everything, what I want to talk to you about is some of the news that we've been up to for the month. So John, what's been going on with you?

News of the month? Well, the biggest probably news is we had our workshop up in Sydney which was great, and we caught up with a bunch of people from the club and Ultimate Guide to Renovation on the Friday night for drinks. In fact, I might even just pull up the photos right now. Jane, let me just. Because I know there's. There we are. So that's last Friday night at the Coogee Plaza Hotel in Sydney.

Yes. So it's really nice to see some people. There's Gabrielle there and as well, who we did the profile with in the your property success Club, who shared with us some of these strategies on how found some properties down in Wollongong. And just as a heads up, I was just doing some research earlier and Wollongong did 8% growth last year. So regional strength there.

Yep. And he had some early wins as well. On top of that with upping the rent and upping the value a bit too from Emory.

Yep.

Yeah. So that's good. And the other good news this week was someone who we've been working with with the done for you service, Wilma. She purchased her property as a result of working with us to locate the suburb. So that was excellent news and a bit of a milestone for us here at York Property Success, you'd say. Our first done for you landed.

Yeah, it was really exciting actually. I had the buyer's agent that she decided to work with as well go through the property with me on Friday and she said, this has got your property success all written all over it. I can see the capital growth, strength and why you've selected this suburb. And she was, she was raving about it. She said, I think I might have to look at this suburb a little bit more as well.

Yes.

Giving away all the gold there. Yeah. So that was really cool. And she was. Yeah, great. And I think it's gonna really put her in good stead for years to come too. So. Yeah. Congratulations. Let me see, is she here? I can't see her there, but congratulations anyway, Wilma. That's awesome. And that's about it. Just we've been doing a lot of planning for next year and throwing a lot of things around and so it'd be good to get some feedback from people in the club and see what they think.

Absolutely. Well, John, I think we've got a few other photos there of the actual workshop itself in Sydney. And one of the photos is someone doing a dot map exercise. And this is the. This is one group. I think it was the eastern side doing the dot map exercise there and then we had the western side and I think it was Ben who actually came up with an innovative way of trying to locate suburbs. He had the magnifier on his iPhone going, which I thought was really inventive. So we never stop learning with the top maps. Do we?

Yeah.

What's really interesting about this workshop in Sydney. So obviously we did the workshop for Melbourne in Sydney. So we're looking at Melbourne suburbs.

Yeah. So that's a Melbourne map on the wall.

That's why that map looks a little bit different to Sydney. So we were in Coogee in Sydney and we're looking at Melbourne now. When we did the Melbourne dot map analysis in September, it was at that point where I was discussing the ripple effect etc and how we see pricing pressure get up to a certain point and we always are expecting it to go over and there's sometimes there's physical barriers that stop and one of the physical barriers that we had picked up previously was the Western Ring road, especially to the north area. And what we found was now three months since we had done the last workshop in Melbourne, there had been that pricing pressure that it just pushed over the Western Ring road. And all of a sudden those areas up near, you know, Broad Meadows etc started getting some growth as well. So yeah, it's interesting just in three months how much change you can get in that dot map, isn't it?

Yeah. I think some people, particularly when you do your first stop map, you don't realize how fast that 10 year average capital growth starts to change. And I remember we said this before, but 2013 when we did Sydney Jane and everything was virtually the one color, you know, it had like 3 and 4% growth over the last 10 years.

And then that green and blue and like will it ever change?

Yeah, and then that started to really change and continue to change.

Yeah, absolutely. And well, I, I've been busy too, so I've got some photos that I want to share. I might get you to run through them.

Yeah, there's another one there from the. Yeah, go ahead.

This is at the workshop. We obviously jump on a bus and go off and inspect a property and then we have everyone back for a bit of a few drinks afterwards. And it turns out the property that I chose was just around the corner. So everyone was back by 4:30 rather than 5:30. So we had hours of drinks with lots of fun. So we had a buyer's agent come and speak to us about the Brisbane market, which is good. And as you can see There was a 90th birthday party going on in the background there. So we had a, we had a lot of fun going there. And what else we got there, John?

I don't know what that is. What's that?

This is me doing my. Can I replicate a Pinterest Christmas hors d'.

Oeuvre.

So, you know, it's the time for the Christmas party. Every single year I grab up Pinterest and I grab the best looking, you know, lights and decorations and table decorations for the big day and food and recipes. And I get to it every single year in December and go, this year is going to be the fabulous Christmas. And I looked through all my pictures this year and went, I think this is the most I can attempt. And as you can see here, they didn't even turn out like the Pinterest picture at the back, so at the top. So I did make an attempt so that it was my Christmas attempt, the Pinterest Christmas. So I still have hopes of putting icicle lights up and down the corridor, much to my family's disgust that I'll be out this weekend looking for those.

Yeah.

And also for Christmas, I know this is nice. We had one of our, one of the people we work with send a box of Krispy Kremes to us. So that was very well received. Thank you very much. And managed to be mother of the year and send my child off to a family, a friend's fun date with that and filled up all the children with sugar. So excellent. Thank you for that. What else do we have going on? Actually, this is a picture of one of my husband's sculptures. So he's an artist. So he retired from full time work, was in it and became an artist, which was his passion for many, many years, that he could do full time when he didn't need to. And this is one of his sculptures that he does on Perspex and he won. We turned up on Friday night at the BSG Collingwood Brunswick Street Gallery exhibition and he was chosen as the winner of the 800 there. So very, very proud. That was my evidence.

That's what property has allowed him to do.

Go and follow his passion. So that's really exciting. So yes, I was going to share you with that. And then finally we've got some of our visitors. So this is a really, you know, a really exciting thing for us. I don't know if we want to come back to these photos a bit later.

Go ahead, John. You might as well since we've let the cat out of the bag.

Okay, so this is really exciting. So this is something that you might have heard me talk about during my birthday week. And I said, you know, one of the things that we really try to do is, you know, assist people in removing their money worries so they can get on with life and concentrate on the things that are important to them. And whilst we were kind of in this planning stage for doing a quick little, you know, birthday and celebrating with the community, a few weeks ago, Sarah and Heath Crawford contacted me. And Sarah said, look, I'm just. I really want to thank you with all of the things that you've done for us and helped us out with over the years and getting our property. You know, it's doubled in value in the last couple of years and it can really assist us. And I've been following Sarah and Heath's journey on Facebook and they have a daughter, Piper is two and a half, who has an aggressive form of epilepsy. And, you know, they said, you know, they had a bit of a story and I said, well, come in and have a chat to John and I and, you know, we'd really like to know more about what's going on. So. Poor little Piper, you know, she's. She's two and a half. Only 18 months ago, she had her first event, which was completely unexpected. She's been resuscitated over a hundred times, and in the last eight months she's had to learn the basic skills of talking and walking again eight times. So, you know, these epileptic seizures, they create something like an electrical storm in her brain, and they're so severe she does have to relearn everything. So, you know, she's an active, beautiful, gorgeous child. And every time she comes out of these seizures, she's a little bit different. And the family don't know, you know, how she's going to be. And I guess the sad truth here is that, you know, these guys desperately needed resources to allow them to navigate this experience and diagnose what she was going through. And unfortunately, that just wasn't available. And, you know, she really suffered because of that. And we really feel this is quite tragic and unjust. And the fact that it's happening to a member of her own community as well, you know, was really, you know, made it a lot more personal for us. So, yeah, Sarah and he, they started a foundation to help Piper and other kids to get, you know, the help they need. And they called it the pipilepsy foundation. So. Www.pip.ellipsey.com I'm just going to put in chat there, Jane. Oh, good. And you can see from the photos, you know, they're just. They're such an amazing, loving family. And they've got two older children as well. Both of them have. The older children have their own struggles as well. And, you know, the really, the thing that really, really motivated me and gave me so much solace was that, you know, Sarah saying, because they're for the investment properties, we know that we can sell these soon and we can pay off our home loan and we can get on with living our life and looking after our daughter. Which is completely why John and I do what we do. People get rid of the money worries so they can get on with their life and concentrate on what's important. And Sarah and Heath have decided to set a goal of raising $100,000 for their foundation. And we really just want to get. Yeah. And so John and I sat down and put our heads together and thought, you know, we've got just such a beautiful community of people. What can we do to help? You know, not just Sarah and Heath and their foundation, but maybe others who need assistance as well. So, as John said, 2017 has been pretty exciting, but 2018, we are just so excited about doing some things differently. And one of these is that you may have seen that we have the your Property Success Club, and we would like to.

Pardon me, they may have been the. Your Property Success Club.

Yeah. So obviously, people who are in the Ultimate Guide of Renovation, they usually have 3 months access to the ultimate guide. Sorry, 3 months access to the club as part of being in the Ultimate Guide to Renovation. And we've got some news around that as well. But what we're going to do is we're going to donate 100% of the proceeds of the sale of the your Property Success Club to go directly to the foundation. And, you know, there's legal compliance issues pending. Turns out to donate money to a foundation is different in every state and they make it a bit hard for us to do the right thing, but we should have that running.

We're navigating through a few of those at the moment, but we're nearly there. And I think within the next week or so, because we're really keen to get it up before Christmas, then it will be completely up. So anyone that buys your property Success Club, the money will go. 100% of the money will go straight to their foundation, Pipple Pepsi Foundation.

There might even be a great thing that you guys can share with people or maybe get for someone as a gift. And we're going to do, you know, obviously, a very, very competitive price for you. So, you know, you really can get out there and spread the world word. And we can, you know, raise these money as soon as possible so that we can get Piper's foundation up and running. And with Close to that target of $100,000 that they need. And once they see that, they'll go on to their next adventure, which is raising money, you know, Australia wide for other things for the Epilepsy foundation and for children in particular. So, you know, we'd love you guys to get out there and spread the word about this. It's, it's. We want to make it affordable. You know, as I said, we're working towards this before Christmas so that we can really do something. But this is something that John and I are really passionate about. We've always talked about wanting to give back to the community and Sarah and Heath, you know, did present themselves and the really exciting thing about that is that, you know, we can support them and they're a member of our tribe.

Yeah, absolutely.

Yeah.

And it's a win, win when you think about it, isn't it? As you said, we're looking at having some payment options there, so to make it more affordable for people. But if you're thinking you're spreading the word about property investing and also helping a member of the community at the same time who really needs it.

Yeah, absolutely. And we know, you know, the 10 modules in the club itself and the beautiful Facebook community that's part of it, and you know, you know, answering your calls on these Q and A calls, answering your questions is something that adds a lot of value to the journey, especially when people are just thinking about starting off. So we're trying to reduce the barrier to that, but actually, yeah, you know, do something good as well. And talking about the Q and A calls, John, we're talking about doing something a bit different there too, in 2018.

Yeah, potentially. I mean, everything's, everything's on the table at the moment, isn't it? It's like, you know, just throwing it all out there.

But end of the year, that's right.

When you look forward. So one of the, one of the options that we have is to, I mean, we do the calls like this via GoToWebinar, which is great. There's some, there's, I guess there's some technical hurdles and stuff that come with that, but potentially one of the ways that we could run the mentor calls is by streaming them to the your Property Success Club private Facebook page or to the youe Property Success Club homepage, which we can do simultaneously now. And the main benefit of that is it eliminates all the need to log in and the Restraints with the GoToWebinar platform and the registration, which, you know, sometimes we get a few support issues from that each, each month or each time we hold a webinar. And also Facebook lives improved a hell of a lot in the last year. So we could virtually do most things on Facebook and even more that we can do on GoToWebinar now. And it's kind of where most people are already so in the, in the club and on the page. So that's one of the things we're considering. The other thing we're considering is that having instead of having one Q&A call per month at nighttime is having multiple Q and A calls during business hours throughout the month. Now that's partly due to our own desire to, you know, perhaps achieve a little bit more work life balance in 2018 and you know, spend less time away from our families. But potentially it also give us a little bit more flexibility so we can hold calls at a, you know, relatively short notice along with the kind of regular calls. But yeah, we could share, be sharing information as it, as it arises or even celebrating people's success stories and stuff like that. And, and I guess regardless of whether it's GoToWebinar platform or Facebook Live, the call recordings would be there in the archives in your property success club and ultimate guide. And also, you know, you could submit questions in advance and all of that kind of stuff. But so that's one of the ideas we're tossing around at the moment. Love to get your feedback on that. I guess the main change of that, apart from the platform is how would you feel about having more mentor calls that were held during business hours rather than one per month at night. So I understand not everyone's. Some people are going to be listening to this on the recording. So maybe just pop that. Pop any feedback you've got or any feedback on anything we've discussed so far for 2018. If you pop it through to johnourpropertysuccess.com that's johnourpropertysuccess.com and I will certainly reply to you and I'd love to get your feedback on that.

And as another parting Christmas gift, as we said, the ultimate guide to renovation. Students usually get three months access to the club. We want to get rid of all that kind of restraint as well and we want to give you access to that as a unrestricted access. So that's another gift from us to, to you guys. And you know, we want you to stay within the community and learn from the like minded people within the Facebook club. Yeah, Private Facebook page. Because we really believe that, you know, we just, we have Such a fabulous community. They're supporting each other and sharing stories and celebrating successes and that's what we're here to achieve for you. You know, your property success. That's why we named the company we're here for that. So, you know, to be able to assist community members like Sarah and Heath and Piper and yourselves and your journey in property investing. We want to remove any of these restrictions and going to 2018, completely open and delivering. So as I said, we're going to be donating all of the funds from your property success club to the Pippilepsy Foundation. And you've got in chat there the details on that. But it's really exciting. That's. That's the changes.

That's it. That's it. All right, back to you.

Better get on to some housekeeping. Hey, we got a few little other pictures there. Photos there?

No, I had a couple. We can bring those back up later if you like. A couple of close ups.

Okay, so quick housekeeping. If you are on a computer and you're experiencing any problems hearing, perhaps you can't hear during the questions, there is an option to call in using a telephone and the number can be found in the sidebar under the Audio options drop down menu. And you can call that number from a landline, mobile or Skype account. And when you do have a question, all you need to do is raise your hand by pressing the little hand icon in the sidebar menu. It is quite small and hard to see, so click the hand button and that will notify me that you have a question. And when it's your turn we'll unmute your line. And if you do have a question, you know, you can write it in the question box at the bottom of the control panel and we will get to those if time allows us. But we really do give priority to the spoken questions because it's easier for me to understand what your question is and respond to you in real time. So we love that. And you know, I think it's a bit more engaging and a bit more fun when we can have a chat as well. And remember, there's nothing that we hate more than people think they have a silly question and they can't ask it because we all started somewhere once. And it's possibly a question that you have that other people are thinking about. So please share and let us know. And this, finally, this isn't a tech support call, so if you are having some problems with videos or downloads or logins, please contact supportourpropertysuccess.com and Diana, our customer happiness manager, and Edge, our tech support manager, will be onto that and fix it as soon as humanly possible. So without anything else, let's see if anyone has any questions for the month.

Oh, no hands up at all at the moment, Jane. Stick your hands up guys, if you've got a question. Otherwise we're going to just keep on talking.

Oh, we'll leave.

I do have something out of the way instead of leaving it until the 24th.

Exactly. I can go and practice some more Pinterest food. Well, if you want to share your screen, I can share my screen, but yeah, actually, I don't even know if that's necessary. But we do have a couple of stars that, that we're going to put onto our star wall for the month. So if anyone actually listened to the last mentor call, which was only two weeks ago, we had a couple of people get on there and share with us their success, which is fabulous. So we had Lorraine, who's just picked up her latest flip, which is fabulous. So congratulations again, Lorraine. I know that you're settling close to over Christmas and you'll be able to tell us more about that as well. So we have a big star going on the wall for Lorraine now. She's already got a star on the wall so this is great. We're getting repeat stars. And Deanne, so she's in the middle of her renovation in Perth so she's finally taken the plunge. She's renovating her home. We did quite an extensive conversation in the November mentor call about some of the things that she was looking at and so please go and have a listen to that side because I think it's really cool. And you've just mentioned Wilma and Wilma has just secured a property in Melbourne as well, so that's pretty exciting. And, and David, we've been working with David at Investors Choice and he's just secured a property in Brisbane today. So contracts just came through. I did a deal review for him which was really exciting and came up, came up trumps. And Ann Tran has just bought her first property just this month, about to settle. So she is going to be doing some extensions in Melbourne as well. So big stars to all these people. We're really excited about you guys, you know, kicking goals and even if it's just downloading the checklist, you know, from one of the ultimate guided renovation modules and getting out there and just, you know, even if you're not ready to buy, just getting out there and using the checklist and having A go and getting experience with it. Because I think, as we know, John, practice makes perfect.

Practice makes perfect.

Yeah. This gives you a little bit of a heads up.

Absolutely. Yeah. You get, you get to go like even with the property inspections, you get to start to get that feedback loop going of inspection prior, guessing what the price is going to be, then seeing it sell afterwards and slowly you just get better and better reading that property market. Also, the other thing that you can do even if you're not ready to go, is use all the stuff like in the ultimate guide, all the feasibility type stuff like the quick quote calculator and the checklist system and all that stuff that you can do on your own home. You don't need to even have another property to do that you can run through and you know, either pretend that everything's broken or just you might have some things broken that you can really calculate. And yeah, all that's all that stuff good to practice on even if you're not ready to buy yet.

Absolutely. So, you know, there's you guys, you know, as you go through the ultimate guide of renovation or if you have been through all the 12 month modules in the past, go back and do it again. And you know, we have, as I said, we've just done a dot map for three months after we did the last one. We noticed a lot of changes. So, you know, get in there and see what's happening. So, yeah, pretty good, Pretty good month with, I don't know, over five stars hitting our wall, John. So I'm going to have an aim for about 10amonth next year. So when I do a call out, say what have you been up to? I expect people to tell me and get on there and share your story. So, Deanne, thanks again. Once she's shared some of the numbers and what she's doing with her Renault on the page. So get in there and check it out because there's always something happening on the your property success club page.

Yep. Still no hands up, Jane. Still no questions in chat. This may be. I think you're gonna have to. Yeah, yep, go for it.

I don't want to fill in time, but I thought it was kind of interesting. I had, I had someone ring on one of the strategy calls that we do after we work out borrowing capacities for people and we kind of go through what's your borrowing capacity and what can you afford to do. And the question that came up I think is a question that a lot of people think about and that is, okay, so I've got This great borrowing capacity. And I really want to buy my future home, have it as an investment property for the next few years in this scenario. But if the market's going down, do I really need to, you know, buy now or shall I just wait for the two years time and buy it in two years time? So it's like, yeah, should I buy now or should I wait? And I guess the thing is, often what it comes down to is what suits you and understanding the numbers. So we actually did the numbers for this couple and the really interesting thing here was we looked at the median price for the suburb, the median price and the median growth predictions for the suburb. And the median price to give you an indication was around 900,000. And the area that they wanted to live in, which was close to the water and with views of the water, the median was around one and a half million.

Okay.

So when you kind of looked at the suburb itself and said, okay, here's the median and this is pretty much what the suburb does. It doesn't allow for some of those areas that are, you know, the golden triangle or the have the views of the water or something different. And so it's really hard to take the median as the beyond end or when you know that there's specific differentials or things that really, you know, make a difference between what could be the pricing in one area or the other. So I guess what we kind of did is we then had an idea that we'll go out and have a look at what's really happening in this area. So we looked at the area that was Melbourne. You know, we know the population growth is exceeding Sydney. We know that an underlying economy is good government's planning, spending money on infrastructure. You know, we have all of these growth dynamics. And although the growth dynamics, you know, we're looking at predicted growth over the next, you know, we're coming off the end of a very good growth period and you know there's going to be a slowdown in growth. There's a concern that the growth could go backwards or if we did buy a property now, then, you know, there's going to be, we're going to lose money or it's, it's going to go down in value.

Yeah.

And so there's two real issues here. The first is you can understand from the numbers and look at the economy and look at what's possible. And we also put up the sqm boom and bust report and they're predicting up to 9% growth next year. So you could potentially lose on a $1.5 million property, $150,000. Essentially over $100,000 in growth. And it might slow down the year after, but that growth has already gone onto the property price. And then we've got the second issue, which is this is actually a property that's outside the ordinary. This is in a higher price range that doesn't actually obey the normal rules of property investing. So, you know, in the sense that the people who are buying in this area are usually, you know, those that aren't affected by the economy going up or down or unemployment, you know, the people in the finance industry or the industries, and they're getting big bonuses, works not hurting them.

Deep pockets.

Exactly. And they don't. You find that top end of the market doesn't often respond like the other parts of the market do. So there's really two questions there. But the other thing, I guess the third thing that comes into play is that for them to buy this property and hold this property and the difference of the rent that they get in the interest was less than 100,000. The potential growth they could have was over 100,000. But the other thing is, and not specifically for their issue, but other thing that we need to consider, should we buy now or not, is that, you know, I had NAB and CBA in my office this week, and they've both indicated that the next big move and the next changes we're going to see in servicing calculators is going to be that they're going to get tighter on living expenses. So the big data that they have on your bank accounts now, they can, with a flick of a button, look at your discretionary income. They can look where you're spending your money on entertainment. And if you don't declare all of that into your monthly income, they're going to declare it for you. So they're going to increase, depending on your household income, they'll increase your monthly living expenses, which will make it harder for you to borrow more money. So potentially your borrowing capacity is higher now than it will be if all things are equal in the next few years. So you need to put that into account as well. So it was a really interesting question because it really had a number of areas that we had to explore, and they have to go away and obviously think about what's right for them. And, you know, as we know, we don't want to write loans for people who don't need them. But I think if you have the numbers to play with, and in this situation, you know, they were looking at a top end of the market, within the market. So it is interesting to look at when you're looking at the media market for a suburb, understanding that there's some areas that might just lay outside of that. So yeah, it was a really interesting question and one that we quite enjoyed discussing.

Yeah, it is. It reminds me when we were looking, before I went into development, we were looking through the blue chip suburbs of Melbourne for a renovation project, a flip. And we're looking at potentially doing a double story extension on the back and like a double box on the back and selling again in a short amount of time. And there was a bit of a slowdown. It wasn't a big slowdown. I think this was 2013. Yeah, yeah, it would have been 2013. It was the year we started Ultimate Guide and the. So we were rubbing our hands together. We're thinking, great, these suburbs like Q, you know, Camberwell and Canterbury, that we're going to pick up a, a bargain now that the market's kind of slowing everywhere else and all that happened was stock just dried up. It was just like it went from, you know, having 20 auctions a weekend to one or none. And they just, the rarely were you. Yeah, they. It just be. It went to the beat of its own drum. And I think part of that is just the financial literacy of that market. Like, they know they're not, they're not for. They haven't got the money by accident, you know, and they. And they're not going to lose it by accident either.

Absolutely. And I think that it's interesting, like you said, you know, you're kind of rubbing your hands together, you're trying to guess what the market's going to do and you know, there's a slowdown and it's coming. And I'm talking to people nearly every day at the moment and they're. And that's the question what's happening in the market, you know, because the market is changing. That's completely true. The clearance rates in some of the bigger cities are declining. And I'm just watching the. If you get onto YouTube and, and put in search the CoreLogic December report, it's just come out this afternoon and one of the things that they've talked about there is that the combined capital city growth over the last 12 months is now 5.5%. So that's when Australia's capital cities have grown. The regional areas have done really well at 4.2%. So there's been some good growth there.

When they say regional areas does that take into outback towns and the whole bit.

Yeah, they do things like they talk about the rest of New South Wales, so they talk about Illawarra, they talk about Newcastle and then the rest of New South Wales. So they take into account all those.

Regional areas because that's pretty high figure given that you're including all of those places.

Absolutely. And the, but the thing is the Sydney market has come down and it's, you know, it's at, I think it did 1.3% in the, since July and so in growth. So in you know, whatever they're having July, August, September, so around five months. So. But a third of all of the property wealth in Australia is concentrated in Sydney. So when that market comes up a little bit, that's what is affecting the whole national market kind of figures because there's still some really great figures that are coming out. You know, Brisbane, Adelaide, Hobart, Canberra, Melbourne, even Perth, you know, went up last month as well. Darwin's still the one that's still kicking along at minus 5% unfortunately, but for the year. But you think about the Sydney prices and you know, the median price in Sydney at the moment is, you know, $1 million $70. It's. If you bought in February 2012, your property now would have gone up by 75, you know, so it's gone up, you know, 175% virtually. So, you know, there's been a huge equity gain. So losing 1%.

You can take that.

Yeah, yeah. And we, we are going to go through a bit of a period of slowing of growth and, and I think there's some areas that have been over stimulated by developments, et cetera that might actually, you know, you might see some prices drop. But from what we're seeing, you know, the indications and speaking to the experts, et cetera. And I'm having lunch with Peter Kalisis on Monday. He's got something exciting to tell me.

Something exciting about Adelaide.

Something is happening in Adelaide but you know there's, there's, there's still when I speak to like even Louis Christopher and I've been speaking to a number of researchers in the last week, there's this enthusiasm that the numbers are showing and it's almost like the behavioral tendencies and the doom and gloom and the media that is starting to affect the consumer confidence where in actual fact that the, you know, the underlying factors of what we're seeing is quite good. So just some numbers that I was, I pulled out. So the growth in Sydney in the last 12 months is 5%. The growth in Melbourne 10%, Brisbane 2.4, Adelaide 3.4. Overall in the last year, Perth has gone back 2.6% and Hobart's kicking goals at 11.

Really.

So it's really doing things. And Canberra has done six. So, yeah, so we're really seeing some, you know, some, I guess, good underlying growth in those capital cities. But when we look at Newcastle did 13%, Geelong did 11%, Wollongong did 8%, Sunshine coast is 6%. So those large regional commuter cities to the. To the capital cities, affordable, you know, and still kicking along quite well. So there's some really. I think there's some really good underlying merits to what we're seeing in the market at the moment. So, yeah, pretty exciting.

Interesting. Yeah. That's great. Well, all right, let me have a look back here and see if any hands have gone up. And the answer is no, Jane. So we creep closer to our adios. And no questions in chat. This might be the first webinar we say we don't.

We don't leave any questions unanswered. Well, one of the interesting posts that came out.

Here we go. Sue's come to the rescue. Can I put a. Gonna put sue on or you want to finish your thing first? You might. You might need to hold it up your sleeve.

I want sue to fall asleep.

Keep. Keep it up your sleeve. We might need it. Hang on, here's Sue. Hey, Sue.

Hi. Can you hear me?

Yep. Yes, loud and clear.

I couldn't let you go early. I had to ask something.

You're making it up now, aren't you?

No, no, no. It's. It might be a bit boring, but. I'm sorry. Okay. I'm considering. I think I touched on this last time considering selling my little block of flats, but I just wanted to run past a few figures. Is this the appropriate time to talk about it?

Yeah, as long as you're happy to throw them out to the world, we're happy to take them.

Fine.

Okay. It has a good return. It is an older building. It can't be strata. I don't see it getting a lot of capital growth because it's classed as commercial. It's based. The growth, the value is based on the return. And I don't see. Because it's an older building, I don't think I can increase the rents any further. So most of the growth I've had out of it in the six years that. That I've had it is because of the renovation. It is hard to get good tenants because there's noise transference from Top to bottom unit because it is an old building. The land as it stands, just as land. The zoning there has changed to seven stories high. It's a 600 square meter block of land. But the surrounding castles of land have been selling off at about a thousand square meters. Thousand dollars per square metre.

What's your one currently? How many stories?

Two.

Two.

So land value is about 600,000. The building as it stands is worth about a million and fifty. But I don't see that growing because I can't increase the rent. So it'll be a long time until the value of the land is greater than the value of the building, if that makes any sense. And it requires a lot of input from me because it's older, because of the type of tenants, it changes tenants quite a bit. So to keep it at the good standard that it is takes quite a bit of energy. Every time we change a tenant, you have to make sure it stays at the same standard or your rental drop, etc. So anyway, I'm seriously considering selling it and wanting to put money that we've made out of it across maybe two or three properties, which I think from what I see, house and land gets better growth than block of units in this case. So I'm just interested in your feedback as I'm processing. So.

So where, where is this Sue?

It's in Woody Point.

Just a few.

Steps to the cafe precinct.

What state?

So just a few steps to a little cafe precinct on the waterfront.

What state are you in? What city?

Oh sorry, what state? Queensland.

Yep.

And Brisbane.

Brisbane.

Yeah.

Great.

Okay.

And tell me when you bought this six years ago. Tell me your strategy when you bought it and what your plans were and what your research found at that stage.

Probably didn't research a lot. Just thought, oh, we can add value by renovating. So our strategy was to renovate it.

And you knew that you couldn't start it at that stage when you bought it? Yeah. Okay. And how many units are there in the two stories? 4. And what kind of Renault did you do on it?

We spent a lot of money on the Renault, but it just cosmetic.

And it was when you purchased it. You can put. Did you purchase it at the time with a commercial loan? Like they told you at the time it was a commercial property?

I'm not sure really. I'm assuming it was a commercial loan.

And why is it valued? What's led you to believe that it's class commercial? Is it because of the.

Is it because the agents, when they value it, they say it's based on the return of, of the building, the rent return. Whereas if it's house and land, it's the value is not just based on the rent return.

Am I right? Yeah. It's interesting what can happen with buying a block of units. And we've had, you know, I've had quite a few clients do this over the years, is that if you walked up to one bank, for instance, and bank west and said, you know, I want to buy a block of four units, they would say the maximum that we do in our residential loan space is two units on a block or two properties like the house and the granny flat, or the two units in a block of, you know, townhouses on one strata plan. And you have to go to commercial if you want to buy this property because it's four units. That's outside of our policy. So what happens is a lot of people go, oh, okay, I'll go commercial. The reality is, if you turned around and went to CBA and said, I've got these four units, I want to buy cba, go, yeah, that's fine. That's under our residential policy. So different lenders have different policies and sometimes people end up in the commercial space when they don't necessarily need to. And because it's four units on one title, it really depends on the property itself and the valuer. So actually getting a valuer to value the property. And the only real times that I see a true commercial building being valued based on the rental return, which is what your agents are indicating to you, is if it is a true commercial building. And, you know, I've got a friend who has a business in Queensland and she buys commercial vacant buildings and she moves her company in there and takes up half the space and then rents out the other half the space and then sells the building because it's all based on rental return and she's got a rental return in it, and then, you know, she goes and buys the next one. And. And so that's a true kind of valuation based on that rental return. And the valuations are a lot more expensive, $1,1500 compared to the free included in your residential loan. So on one hand, it almost be worthwhile to going back to your broker or to your bank and asking them to do a valuation for you and see how they value it rather than depending on the real estate agent, because that could just give you an idea of that potential. Or you could engage a valuer yourself and tell them that you're thinking of selling it and you want to know how it would be valued on the open market. Because one of the things that valuers do when they value for a bank, they have to look at the sales, comparable sales in the area and have to come up with three. And it's very difficult to do that when you have a specialized type product or asset like this. However, if you engage them yourself and you tell them what you're trying to do, what they will do is they'll look at the change in zoning and they'll be able to look at some of the potential sales that have come up with the zoning. Because developers can now see that you can go to seven stories and you've got two stories and you've got a block that's are going to allow a developer to develop on that, then you might actually see the prices of these type of specialist kind of assets go up. And they can take that into account when they do the valuation for you. Yes. Yep. So it might just before you make a decision of, you know, should I sell it or shouldn't I find out the real numbers rather than just what the agents are saying. Obviously the agents have to sell it and, you know, they're coming up with what they think the valuation is based on this kind of. We're treating it as a commercial entity. I think you probably need independent value will probably give you a real idea and give you some idea of what they're saying, because the value is usually specialised in certain suburbs as well. So they might. A lot of the valuations that they do, valuations that, you know, not just for sales, they're for refinancers or they're for developers, etc. So they might be across some of the sales that have been going on or some of the interest that's been going on as well in that area. So you can tap into their knowledge. Yes. So that would be one thought. The fact that even though you've improved the value of the property, you still, and you probably maximise what the rental return is, it is always disappointing when you can't keep tenants and you can't. You have to do that turnover, you have to do the improvement every time when the tenants leave and fix them up. And there's a lot of cost associated with that, let alone the cost of the agents with their reletting fees and all of the things that they put through. So I can see how that can be a pain, but it's almost like a pain that you're willing to put up with if you do find out that there's going to Be strong demand for these, you know, seven storey buildings going up in the area and your $1.65 million property is going to be worth 2.65 in a year's time. Yes.

Yeah, that's right. I really don't think it's going to get that gross based on the rent return currently.

Yeah, that's good input. Yeah. And I think also with the, you know, Brisbane's pretty much the market with the biggest alert still on their units there. So you might. The oversupply of units. So you might just find also that a lot of developers are stepping away from that market. So they may. Although the zoning has changed to allow for the seven storeys, there may not be the interest from the developers anyhow. So which would reflect not having the growth or the demand or the additional growth, you know, sale price or value that would be put on to an area that can allow for development based on zoning changes.

Yeah, I don't think a developer would develop because of what else is going on in the area. I think it would be more someone for their super fund because it's good return.

What kind of return are you getting? What kind of percentage return?

I'm not very good at working that out. All I know is it's pretty good. Everyone's sorry without giving you all the figures. Exactly.

Yep. So the way that you or anyone else listening can work out the return is just work out the annual rent and we're just looking at total return here and annual rent divided by the value of the property. So you know, $50,000 rent per year divided by a $500,000 value property is a 10% return. So that's how you can work this out afterwards for yourself. So at the moment in Brisbane the yield is 4.1%. So that's what the normal return is. So I imagine that you're probably doing a lot better than that. But. And that's. And the yield story, as you said, it's a nice story for the super funds.

Yes.

And if you've done the renovation and done the work for people, then it might just be something that is possible. And if you did sell this and put this, the money into different, a couple of different properties, would you in house and land, would you be geographically agnostic and look at different markets or would you concentrate still in Brisbane?

Brisbane is easier. But. I'm not restricted to Brisbane. If I think the figures are good elsewhere, I'm going where the money is.

Absolutely. What do you say? What's your. What you're saying, John? Easy Is not always best.

I don't know, you remember my sayings better than I do. I'm glad you're around, actually.

I thought I was the one getting Alzheimer's. These calls are going to get a whole lot quicker when I have Alzheimer's. But yeah, and sometimes, like some of the conversations we have with first time investors and, or even if I'm reading someone's fact finder and I go, oh, you've bought in the same suburb. And they go, oh yeah, I was walking my dog and I know the area and it was easy. So sometimes we kind of fall into that trap. But obviously now, you know, you've got some methodology behind, you know, your research, etc. That you won't. But you're being in, you know. I know. Well, when, when were we in Brisbane? September. We were looking at our workshops that we did last year compared to this year and the suburbs that we came up with had done, you know, 6, 7, 8, 9% whereas Brisbane did 2.3%. So we still know, you know, those pockets of potential do exist within the area. So doing that research and doing the dot map and, you know, getting the reports and using the suburb selector software and going through and doing that analysis, you will definitely be able to, to pinpoint an area. And if you do feel that this is, and it just depends your age and where you are in your investment journey, but if this has been a problem and, you know, too much work for you, maybe, and that's why I asked you why you bought the property. You bought the property because you thought you could do a renovation and add value to it. Well, it sounds like you've done that and you've maximised that return and achieved that goal that you had hoped to do.

Yes, and I'm getting older and it's becoming a chore, whereas we had a few more houses that potentially would get good growth. There's less turnover of tenants.

Yep. Yeah. And I think it's, I mean it's always very attractive. The, you know, there's four units and you're not going to have a complete vacancy all at once. But the reality is that it also means it's a. For lots of people that you have to deal with and manage and, you know, you might have. If we talk of the normal tenure being 18 months. 18 months, 2 years for rental properties, you know, you could be doing every six months, you could be having that conversation about a turnover. So, you know, and it does cost money and it means you have to go in and you have to Clean it up, which costs money as well.

So.

Yeah, there is. There's definitely downside. Yes. Yeah, no, that's good. I'm.

We're leaning towards selling it. We really do want to sell it, but everything inside of me says never sell, never sell. I know, Yeah, I think there is a time.

Yeah, I think so. And look, I've very much been along the never sell property. But I mean, as I've shared with you guys, Tod, my husband, sold one of his properties about 18 months ago because the numbers just didn't stack up anymore. There was $200,000 per unit that had to be spent in the body corporate to fix up concrete, cancer and roof look leaking, et cetera. And it was going to add $50,000 in value. And I think they're up to spending $300,000 now on those still those units. So it achieved what we wanted to do either to achieve it. You know, we got some good growth out of it. We had, you know, six. Six months of living on the Bondo beach and enjoying the winter there while we renovated it, but it just didn't fit into our portfolio anymore and have the allow us to achieve what we wanted to achieve with it.

That's really helpful. I think I was struggling with that. You should never sell. But yeah, it is also a fair bit of work involved in keeping it to a good standard. So, yeah, that's helpful.

And you've done what you've set out to do. You bought the property, it's gone up in value. You've added the rental yield by renovation and made it more attractive to sell. And if the agents are telling you that they sell just based on the commercial yield, then you've maximised that. Yes. Yeah. Good job.

The agent's extremely excited about it, and so I hope that translates into a good price.

Absolutely. Well, agents get excited.

They're excited.

Get another agent to do a check on that too. Get a few of them.

Okay, thank you. Thanks for your input.

That's awesome. Well, thank you for asking a question. Have a very merry Christmas.

Oh, hang on. Sue had another question and good thing. Sue, you're back. Sue, you're back.

I'm just trying to work out the return on it. So it's annual rent. Sorry, Divided by the value of the property.

Yeah. So if you said that value was 1.65, for instance, and let's just say that you were getting 75,000 in rent. So 75,000 divided by 1651, 23 gives us times 100 for a percentage, 4.5%.

Okay, I've got it.

I've got it. Cool. And I mean, that's one of the questions that everyone talks about. They talk about LBRs and yields and all of these kind of acronyms, and often you don't know what they're talking about. Exactly. And just be mindful of the fact, you know, let's just say that you've got a yield of 5% and the interest rate that you're paying at the moment is 4%. So in theory, you're earning more than the cost of your property. But what a lot of people miss is that there's on cost as well. So there's data management for units and you've got landlords, insurance, and you've got the letting fees and you've got the agents fees and water maybe, and all these council rates, all these different things. And I allow 25% of the rent that I get as costs. So, you know, if you're getting $100,000 in rent and I'd allow $25,000 for costs. So, you know, just so that when you run doing some rough numbers, that gives you an idea of what your real, your net return would be. Yes. Okay, great.

Now, sue, feel free to ask another question because you're. You're running solo at the moment. There's no other hands up, no questions in chat. You've been doing this a favor.

I'm just loving the fact that all these people on the call have had their. Their answers, the questions answered over the.

Year that they've been 2017 sorted. No need, no questions left.

Okay, well, I was going to share with you one of the posts that was a bit of a discussion that went on in the club this week. Some of the people that are in the club are tradies or valuers or buyer's agents or someone with some expertise. So there's a lot of people in the club that we can share their knowledge with and discuss. And Nathan is. We talked about Nathan last month. He's in the middle of doing some external renovations.

Can I just make a comment about Nathan for a second? His second name isn't really Funster. He's someone that's taken on Facebook, like many people, just for your property success club. And there's a few more than you think, but often they're a dead giveaway because they have names like Renault.

Reno, Russell. That's great. So, yeah, there's some strange names in there. We get people asking to join the club all the time. You probably saw on my screen a lot of people Asking to join at the moment. And their Facebook name is nothing to do with the email address that we might have for them. So we decline them. And then they come back, you don't let me in. Or like, who are you? And they come up with, I spoke to someone the other day who's Slinky man or something. Never would have associated your.

Well, one of the things when we first started is people said, oh, I don't use Facebook. And we said, oh, set up an account, use a Hotmail. It's worth it just for this.

Exactly. And just have a private personal account so no one can track you past girlfriends or boyfriends. Anyhow, so Nathan. So Nathan had a really interesting question because he had two quotes on painting and it was insane. The differences. One was twelve and a half thousand and one was three thousand. And I love the fact that he puts a photo up as well, like loving that. Yeah. And so in an old house and you know, he was really sitting back going, gosh, there was, there was so many quotes. And he did have some other quotes that were 15,000 and 17,000. And his question really was, you know, is 3,000 really viable and possible? And there was a couple of people who kind of shared their experience as well of what they thought they can do. But Alan jumped in and basically said that he's a painter himself and that would just cover materials on one hand. When you get these cheap. I don't know about you, John, I usually don't take the lowest quote, even though it's always tempting. You know, you kind of look at it and you go, oh, maybe they're just. Maybe they're bad and they have no work. Maybe they've got. They've just skilled up and they've got all these extra people that they need to get work. So you're not too sure about that. And that's why it's important to keep, you know, talk to them about, you know, getting referrals or testimonials or seeing some of their past work. Have you ever had some.

Just getting an idea of what the breakdown of the work is like, tapping the tradies for their information, which normally happens on the first quote and then, you know, repeating that to the next quotes that come along. You know, are you going to be sanding this back? Are you going to be, you know, taking it back to timber and burning it off? Or how are you going to be, you know, the other thing. Sorry, I know you've got a question there, but the other thing is four quotes as a. I'VE always found as just a little bit of a buffer to the. Because sometimes you get three quotes and they all might be quite different. And the fourth one gives you. Makes it a little bit like a relative kind of, you know, equation. So you can go, okay, well those two are closer together. So that, that probably is more in line with what I should be or what I'm typically going to be paying.

Well, I was just going to ask you, have you seen this in your personal experience? Because you've got a bit of quote, you know, had quite a lot of quotes done in your recent development where there's been some that are just complete outliers.

Yeah, I've seen this for years and years. The, there's always part of it is guys, if they've got work will just stick in a big quote and if they get the job right, they'll, they'll slot it in and that's when they normally don't turn up to your job because they quoted that when they're a little bit quieter and, and so there's guys that just run their businesses like that, which I, it's, you know, and they get a bad name for it. And so they should. Because if they're not turning up to jobs and so on because they've had another cash cow come in, then yeah, they don't prove themselves to be very reliable. But other times it's, it can be like for instance, I got some quotes on a roof that needed to be had. Some pointing needed to be done. Some of the ridge caps had come off. So there was probably about 3/4 of the roof where there's a tiled roof that needed to be repointed with sanded cement. Then it needed to be. Or before that it needed to be acid washed or that's not actually acid, but that needed to be cleaned and, and repointed. And I had three of the quotes came in at, you know, three to. Most of them were in three to five. And I think there was. But there was a fourth guy came in and he was like 850 bucks or something like that. And I'd got him out of the paper. So the, the, the first three guys I just got through recommendations and, and stuff like that the way I normally would. And most of these guys tended to work around this area, which is in the inner suburbs of Melbourne. So they were used to working at a certain level of job with us, you know, with the builders that pay a certain amount. But the next guy I got out of the paper when I was out getting Some carpet out in Werribee, out in the western suburbs at Western Distributors, I think it was carpet modeling tiles. I got the local paper and I got this guy out of the local paper, and he came and quoted and yeah, he was like 860 bucks. And so I questioned him and went. Run through everything that he was going to do, and it was exactly everything the other guys had said. And sure enough, he turned up two weeks later and did the whole job. Brilliant job for 860 bucks. And he ended up. Yeah. I said, oh, can you. What's that state of that chimney up there? Can you have a look at that? And he goes, yeah, yeah, it's. Some of the mortar's missing. And I said, can you point that up? And he said, yeah, yeah. And he charged us another 50 bucks for that. So. So sometimes, I guess if you've got the tradesman, quite different in different areas, so we're lucky. And I used him again and again. But if you know what you. If you kind of know what you're doing or you know what the job involves, and the guy sounds like he's. He knows what he's talking about. And. And sometimes it's a bit of a. Making a call of whether you trust them or not. You know, whether. Whether you're getting that. That niggly feeling what it. Trust your instincts. You know, you've got that little niggly feeling. I'm not sure if this guy's a little bit dodgy. If you're even thinking that, then just rule them out, I would say. But other times you can get. Yeah, you can get cheap quotes and they work. But I agree, as a general rule, I tend to go in the middle. I don't. I certainly don't gravitate to the lowest quote all of the time, but it's. Tends to be more around on how much confidence that I'm filled with by what they've told me they're going to do and the process they're going to carry out.

Well, I know I got caught out doing the exact same thing as you mentioned, which. Which was looking at the quotes, and I didn't go with the Lowell quote, but I went with the second lowest quote. And I didn't check in with this painter that he was actually quoting against what everyone else was quoting against.

Yeah.

And it turned out he wasn't doing any prep. So when I came in the first day, he painted over all the spider works.

Yeah.

And I was like, what the hell is going on here? He said, you didn't prep the walls. I'm like, that's your job. It's like, wasn't in the quote. Yeah, okay.

Yeah. And that's where it's really good to have a scope of work so everything is just really clear as to what they're doing. And again, sometimes you don't know all the bits of the Scope of works when you get the first quote in. So you can actually make that up with the guy, you know, who's coming out. And he says, yeah, you're also going to need this and you're also going to need this. And so that then becomes what the quote is agreed on with the first guy. And then you can use that. And sometimes by your third quote, that scope of works has grown considerably because other people have brought more to the table. Yep.

There's an ad. I don't know, maybe it was like in the 80s or 90s. There was a little girl and she was ringing up to get something off. It was a Yellow pages ad to get something for her daddy. She was getting him a lawnmower. And she. I always remember this when I'm doing Scope of Work because the first question she asks is like, she rings up in a shop and she says, do you sell green lawnmowers? And they go, oh, did you want twin stroke or did you want this or do you want that? And she's like, oh, okay. And then she rings up the next shop, she goes, I'm after a green twin story lawnmower. And then they say, oh, did you want, you know, electric or petrol? I don't know, diesel or something?

Yeah.

She goes, oh. And she rings up the next one and she's. By the end of it, she's, you know, she rings up this company and she's like, and I want this guy. Wow, she really knows this.

She's a professional. Yeah, exactly.

That's what you have to do.

It's exactly that. Exactly that.

Now, I did have a conversation with Will and his lovely wife in Sydney around this topic just this week, and they're doing a big development and their favorite builder has left the state and one of his apprentices is quoted, and we're talking a significant development, significant amount of money. And they've had another couple of local builders quote, and they've had another guy who's come in as well, and he's. The two smaller quotes are less experienced builders with not necessarily the personal experience. One has been an apprentice with the favorite builder for a long time and the other one has, you know, has extra experience. In different areas and engineering does other things as well. And, and we had this conversation around, you know, what was needed and it was interesting. The, the guy who had some extra skills but wasn't one of the more experienced builders had said, you know, there's two ways of being quoted up and you know, it's the I'll give you the cost of the job quote or I'll give you kind of time and materials. And he said, you're so hands on and you've got so much experience in this, you're going to want to change some things and do things. And I'm going to have to work that into my quote for you to allow for, you know, some of the work that has to be done here and some of the things that are not known. And it's a lot easier to obviously do these kind of quotes based on a new build than it is to do a renovation and pull off an old wall and find that it's got termites and stuff. So, you know, the quotes are often easier to get. But, but he really, and he really recognized, I guess the client's knowledge and what the client was bringing to the table and saying, look, you've done this before so many times, you, you understand what you want, but there is going to be, you know, when builders are actually quoting this up, there's going to be some buffer in there and you're going to be covering that buffer for a fixed price coat. And I think, you know, this might be another way for you to go. And just the fact that there was, you know, the trade professional who was prepared to have that conversation and present that really gave her a lot of confidence and she checked some of the work that had been done and you know, his experience, etc. So, you know, it's, it's not just, you know, shall I spend a couple of thousand dollars on the painting? This is for, you know, with developments of, you know, 800,000 to a million dollars that are the same questions are being asked and you just go through the same kind of protocol and testing and talking and finding out and the experience and making sure everything's quoted in and everyone's doing like for life. And I mean, obviously some of those experienced builders just, you know, pricing themselves out of the job as you suggested because they didn't want it. But yeah, a lot of the time when you're looking at the quotes, it's interesting to see what he's like for life.

Yeah, definitely. Definitely. Yeah. I think build quoting for the whole jobs harder and quoting for developments is particularly hard. It's a really in depth process. It uses a lot of the builders time as well. So you, you kind of want to be starting with a good short list to begin with because you can burn builders really quickly. They won't quote for you next time because they, they'll literally spend, you know, three to four weeks, in some cases quoting out the job. It's a lot of work, but yeah, and it's. Yeah, there's a lot guys do it different ways, but it's. We arrived at the more detailed that it could be, the, the better, basically. And so our, our quotes, in the end, we all the, the tenders we put out for quote were very, very detailed. So the builder knew exactly what they got. But yeah, that's tough work. Much easier doing dealing with quotes from tradesmen on renovations. Much more straightforward.

Cool. So how are we going for questions? Do we get an early mark?

I reckon we might because there's literally no hands up. Come on, guys, put your hands up. We've still technically got 16 minutes to go. There's nothing in chat. If you don't want to talk, you can write something in chat. And I don't think there's. If we go like before 9:30, is that. I don't think we've ever done that before, have we? It's in.

I know we usually. I always say to my husband, he says, what time will your call finish? Like 9:30. He's like, in the last four years, it has never stopped before 10. Like, okay, I'll see you at 11.

This might be the first time.

Oh, that's all good. Well, look, if it is the first time, I hope that that just is the fact that you haven't got any questions and that we've actually satisfied all of the queries and questions that you have. If you don't, you know where we are, jump on the Facebook page and ask the questions there, because we are in there, we are active. And I can pretty much say 24, 7, there's pretty much someone in there who's going to be handy and helpful and be able to help you out as well. But we are going to be taking a bit of a break over Christmas. And have you got any great Christmas plans, John?

No, I'm going to my favorite isthmus. You know what an isthmus is? It's a strip of land with water on either side of it. It's down in Gippsland, into the Gippsland Lakes. So it's a tiny little cottage at the End of this isthmus. It's called the.

That's where you do your fishing with Eileen.

Yeah, that's right. We have a fish.

Yep.

So that's, that's, that's, that's all. But yeah, putting, putting the feet up and yeah, thinking about these new plans for 2018 too. So if anything you've heard about that, you know, excites you or if you've got an opinion one way or the other, please let us know. We really want to, you know, work, work with you guys to make this the best community we possibly can. So we really want to hear your feedback. So, John, at YourPropertySuccess.com I'll pass it on to Jane and yep, love to hear your feedback.

And also, you know, remember we're going to be sending some information. We might try to get a video of Sarah and Heath in the next couple of weeks when she ask their time and just hear a bit more about their story. But yeah, we really pumped about, you know, doing something for someone in our community and this foundation as well. And we really encourage you to get behind it, make a donation, you know, share. Share it with friends and family and, you know, get them into some great property education at a very affordable price. But know that 100% of the funds are going straight to the Pippilepsy foundation, and we can help them get the resources they need to make sure that other kids don't suffer the kind of issues that Will Piper went through and get the needs they need now. So more about that coming up. Hey.

Yep, stay tuned.

So once again, guys, it's been a fabulous year for us. We've just loved being part of your success and watching your journey and welcoming so many new students into our community and sharing with you our knowledge and what we do. And, you know, we really just love hearing about what you're doing. So don't be shy. Get on that private Facebook page and share what you're doing. Tell us, you know, some of the struggles and problems you're having. If anyone can help, I'm sure that there's someone in there who can, if not us.

Stop the press. Stop the press.

No, no, no. I'm in my wind up.

I know, I know. All right, it's now, forgive me if my pronunciation's all over the place, but narayan is raised the hand. Let's have a go. Hello, can you hear me?

It's Naren speaking.

Hey, how you doing?

How you going?

You're snuck in. Well done.

I just have actually two questions. One is does this when we see the suburb profile and other thing, they compare only the unit and the house as two categories. When we buy the townhouse, is it for falls under the unit or in a house or do they have special data for townhouse separately?

Oh yeah.

No, they don't have separate data for townhouses. If it is strata what I've spoken to in the Summit selector software, I've spoken to Louis Christopher about this. If it is actually started like number one of 16 as an address for instance, that will be considered a unit. So it is confusing and some of the different data sources treat things treat it differently as well. That's why in the suburbs Alexis software I wanted to pull out the houses and the units and the townhouses from the census data. So you really have an idea of the exposure of, you know, how popular the townhouses are, for instance. But one of the tools that I use to then go and verify, you know, what's really happening if it is a townhouse that you're after is I go to suburbview.com and if you go into suburbview.com and you type in your suburb which might be, you know, Adelaide Hills and you. Go to the reports tab and you look at the three month rental yield, they actually do split out houses, units and townhouses. So you can actually see a split there that they go to and per bedroom. And I don't know, we're still looking for a per bedroom alternative data source but that's been the best way that we've been able to see what sale prices and rental prices have been per bedroom through those three splits.

Yeah, thanks for that. Another question is I was just checking the media the publish you have put the link in the website saying property for $125 a week. You got those two scenario compared there.

So what, what link are you looking at?

Sorry, property for $120 for a week. I think this year one of the.

Oh, was this the Money magazine article?

Yeah, yeah, yep.

Okay. So it was in the real estate edition special edition of the Money magazine that came out the.

Yeah, I just opened something you have provided in the website just in that you compare those two scenarios. Scenario one and two, you got the purpose purchasers pay POS income is 70,000 on there. So just I'm trying to figure out if maybe it's a single. Single owner or whatever. So he got 70,000 income, then he's. He can have a loan up to 762,000, is that right? The assumption is based on that.

Without going back over the figures, I would hate to say the answer to that is yes without looking at it. So with the scenarios, if you're trying to work out what your own borrowing capacity is, it's best for you to have a chat to your bank or your broker around what your borrowing capacity is. Because one of the things and what I would have done, knowing me, and I know that the editors try to get these out all the time because I try to over put the information in there, but you'll find in the fine print I've put in all of my assumptions so it will actually go through and say, you know, they've got a credit card of this or something or other. So I've actually done the borrowing capacity calculation. So based on the $70,000 income, is it possible to have a $760,000 loan? It really depends on what that rental yield is, how many credit cards you have, how many kids you have, have you got a spouse you're also paying for, do you also have a home? So all of those different things have to go into the mix. So I know all the scenarios that I've done, I've done all those numbers validated with the footnotes, the assumptions that are in there. But if you're trying to kind of back calculate for your own situation, I'd suggest that the most accurate thing that you can do is actually go to a broker and get them to calculate what your borrowing capacity is. So that, you know.

I was surprised with this. I don't know when it was published, but with 78,000 income, I don't think so it's possible to get 7 or 62.

So yeah, that sounds. Do you know where I'm interested if you want to put in chat just the web address that, the link to.

That address from the Mortgage Rates Invest that there is some media media link. Where did I open from?

If you just put it in chat, John will let me.

Yep, you pull it up and have.

A look because $70,000 in my opinion definitely now since the apparatus changes would make it very difficult for anyone to.

And there is a media link based there. One of them, I don't know which one I pressed.

Yeah, she's done a lot of articles over the years.

I think we tried to collect them all and we, we got through. I think we had like 1300 on our database.

Yeah.

So but on that particular article there. But maybe it's not attached to the article or item.

It sounds like ultimately anyway, the answer is you really need to get it checked out individually and because that Is. I mean, it's changing so fast now, even week by week.

Yeah, it is, definitely. And look, you know this. Okay, I can see the article. So it's. Yep, it's the. It is that Money magazine one. And you can see all those assumptions in the notes that I've written to the side. Yes, it is $78,000, and it's 32.5% tax rate. So I have gone through, and I have calculated that. But when I would have done this. So when you write an article. So, for instance, I'm writing an article for February magazine at the moment about what's happening in the. In the market. So when people write articles and magazines, they're usually three months written, three months behind when they were actually done. So what potentially could have happened was when I did the calculations for this, I was doing it in January 2017. And hence, you know, all the extra changes that had come into place could make it difficult, but I definitely would have validated it. And you can see there in the article, I've also got through all the tax benefits and the estimates on what the cost will be. So I know that I kind of overdo that. And the editors complain about me making sure that I do that. It is there. Yeah. So it was valid at the time. It may not be valid now. So. Yes, because as you say, things have changed so quickly, and I'm having conversations almost daily with people saying, you know, the loan that we got you last year, we couldn't even get you today, let alone getting more funding. And that's just about, you know, the changes that we're seeing in the servicing calculators from the banks. And, I mean, CBA brought a new one out last week. Even that's changed up again. So it's all. It's constantly changing, and it's just making it a little bit difficult each time.

Yep.

Thanks for that.

All right. That might be it. That might be it. Let me just have a quick look. Yes, I can confirm. No, hands up.

I was on my roll before.

I know. And. But we still will be finishing at record time, four minutes early, depending on how long it takes you to get back into your role.

True. Well, look, I do appreciate that question, and I'm happy to answer any questions like that. If there's anything that I've written or you see, anything that we talk about that you just don't get, she stands accountable. Yep, I do, and I take pride in that. But I know that things have changed very quickly, and it can be difficult to keep up. And sometimes surprising when you look at things that you think, how is that possible? And yes, time changes all things. But anyhow, time does march on. John and I will be taking a break as well and having a family Christmas in Melbourne, which will be lots of fun. And I hope all of our listeners and all of our community that, you know, you take this time to reflect on the year ahead, the year behind, and think about the year ahead and what you want to achieve next year. Year. Because I've got my goals diary ready for me to start writing in as soon as the work door closes. So I encourage you all to get out there and start thinking about what you want to achieve in 2018. Because as far as we're concerned, it's going to be pretty bright, isn't it, John?

Big year. Big year. Big plans.

Big plans. Anyhow, well, that's enough from us. I hope you guys have a very safe and wonderful time with your family over the holidays. And remember, we're only a little bit away on the your property success Club Facebook page and we're there to help and support you. So to everyone who's on the call and to everyone who's joined us throughout the year and listening to this as a replay, all the best. Merry Christmas. And here's to your property success.

See you guys.