Your Property Success Mentor January 02-02-2017

From your Property Success Club. Please make sure that you introduce yourself as well. Say hi and say, say it loud. Tell us all about it. Now you might be. Pardon me, I've got a bit of a cough going on starting wrong here. Now I know there's so many exciting things that we have to tell you and a lot of things coming up this year and I'm really looking forward to kicking off 2017 with a bit of a chat and telling you a bit of our plans what we're up to as well. So as always, sit down and relax. These calls are exclusively for my mentoring students. The students the ultimate guide to Renovation. Some of those who are guests from your Property Success club and of course my investors Choice Mortgages diamond clients. And if this is your first time on the call, a very, very warm welcome to you. These calls generally take place on the last Thursday of the month, but last week was Australia Day so we didn't want to raise wreck anyone's plans and hence we've moved it forward. So February is actually lucky enough to get two. Now you've got a lot to look forward to this year and we usually give you a reminder about a week out so you won't miss any of the calls. And if you do miss the calls, they will usually within 24 hours be up on the site that you can go to. And as a lot of people tell us, you also go back and have listened to over three years worth of past calls and got a lot of value from them. So if you can't actually make a call, that's okay. We do have a message, message line. No one uses it, but we have it. We live in hope. We actually still check it, don't we?

Yeah.

1376 Triple 1 9.

Sit by it all day long.

I was wondering where you slip off to. So 1376 triple 1 9. Now you can hear his voice. Sitting beside me is the co creator of the ultimate guide to renovation, John Hubbard. Hello, John. What have you been doing since we spoke to you in December?

Oh, it feels like a long time, doesn't it? It does, yeah. I've. I've had a Christmas in between and you know, a few prezis and that kind of thing and. What else? So we had a little short trip away and that kind of thing down the coast near. In Victoria near the Wilson's prom.

Did you catch any fish? Your fishes?

Yeah, Fisher lady? Yeah, the fisher lady tends to be doing. She's a bit better on the. Which is embarrassing to admit but yeah, she likes to rub that in at every opportunity I would too. Yeah. So yeah, if you caught a few fish, you know, for a few walks and that kind of thing. But it was a nice little place just looking out over the prom and you know, nothing too flash but just lovely nature and kangaroos outside and no WI fi. Well, we, we found some workarounds there. But yeah, that's another little ploy that she does. She takes me to these places with no WI fi. But yeah, so all good. And other than that, all the developments wrapped up just before Christmas, which is great. All sold. So that was a, you know, a nice conclusion to the year. Yeah.

So when we left you last time, the one was going to go to auction early this year and it was sold.

Yeah. Yep. So we went, we went ahead and did the marketing anyway knowing that with a view to using all the photos and so on next year or this year and it sold anyway. So that, that was good. But it meant that we still got some nice photos and stuff and, and video and. Yeah, all good. And yeah, other than that.

I know you've got a picture there. Come on, show us the new pride and joy.

Well, only, only because you've asked me. Yeah, that's. That was my toy just before Christmas. So I spent my Christmas when I wasn't kind of, you know, looking across at Wilson's prom with no WI fi, riding that thing which was.

What is this? What am I looking at?

So this, this is a, what I call a lifestyle enabler, James.

Okay, look, I knew I of those, I just didn't know what it was going to look like.

It's called, it's a dual sport motorbike. So it's made for kind of riding, you know, you know, from across the country and packing, putting all your camping gear on the back and, and camping out with it. So it's made to go on dirt and on road. Whereas most stuff, all the stuff, you know, the. I haven't had a bike for I don't know, 15 years or something more 20 years. And I used to ride dirt bikes and, and they're no good for the road because they'll scream the head off and might really go above about 60Ks.

Okay.

And. But these ones have a kind of older, middle aged adventurers like myself, my goodness. Do a bit of both. Yep.

Oh my goodness. I have to tell you, Lisa who works in our mortgage office, she and her husband Brett took off and did 3,000km on their bike. They have a Triumph.

Oh yeah.

So they went from Brisbane down to Newcastle, Sydney, Cross to Tamworth. They pretty much did everything. I rang her one day and said, where are you? And she said, I'm getting my seat molded to my. But apparently you can get a seat so. For long distance driving. So there you go.

I just feel like that anyone who didn't know.

Whatever.

Yeah.

So, yeah, no, yeah.

Good fun. Yep.

Everyone's into bikes. Yep.

Good. Oh, so I've got some show and tell of yours here too. Should I bring that up?

I have been doing so many things. I've got some photos to share with you. So we too had a holiday. And you may or may not be able to recognize this, but we went to New Zealand again. This time for Todd's fe family Christmas. So Hobbiton. Like there you go. Sun mullet. But I was just delighted. Very, very happy. Then I went to the redwoods.

You know what would have been better in that shot? If you just crouched down a little bit further. If you're just like a foot lower.

I've got a thousand pictures of those. Those hobbit holes. They were at 32. They're fabulous.

Do you want them next?

What is that?

Well, I think that's what I was going to ask you.

Oh, yeah. That's my picture of glowworms. Just in case anyone ever asks, can you take a picture of a glow worm? The answer is no. In actual fact, after taking lots of. The guide can. How do I take photos of glow worms? And he said, you can't. Okay. So we went to the Glowworm Caves. I'm going to really embarrass myself now. And I. I embarrassed Todd all the time with my pronunciation of New Zealand places. But we went to Oakahuni.

Oh, yeah.

Which is below Mount Doom. Everything has a reference to Lord of the Rings. Yeah, but. And we went over to Rotorua. You can see they're the redwood. So we're up in the sky there. That was pretty exciting. So that. So had a lovely time over in New Zealand. Once of family fun, we once again went to the Cape Palliser. No Wi Fi seal colony. Done much to. My son's not being too impressed about that. Where to take a nine year old. So the way that I repaid him is when we got back, I. I took him off to Bunnings. And you can see here, I built a Shadow Board Nerf gun arsenal.

Wow.

Yeah. So that's just the kind of mum I am putting my renovation activities to work. So I was trying to visualize how could I build an arsenal. I thought shadow board. So there we Go. We've got the Nerf gun arsenal, unfortunately.

Like a prepper's house now.

Well, being an only child, it means that we're the only ones who can shoot, really. So I often get attacked from behind a door. I see guns coming out, so that was pretty exciting. And then, oh, last week, another bit of excitement. Can't really reveal the true information here, but Nathan Lyon, the oh, go Gary sensation of the cricket world over the summer, dropped into the office to say hi. Yeah. T20. Yeah, he. He actually looks pretty good here. But he had no sleep and was hungover because the Sixers had just beat the Melbourne Renegades, so.

Renegades.

Yeah. So he'd been partying all night. So. Nice guy. Great to see him.

And you can still do that in cricket, I think, and play.

Yeah, maybe. Well, he was then. Poor gosh, they have a tough life. The next day, he had six hours at home in Sydney to see his two little kids. Then off to Brisbane. They won that. They went off to Perth. They lost that. The scorchers completely scorched them. And then nine weeks in India.

Oh, okay.

So, first day of school. So I was pretty impressed with this little poem, actually. So my son's just started at a new school, and the teacher put a little poem together, which she said, and I'm going to read this to you because I think it's lovely. I'm so glad that you're here. Together we're going to make this a super fantastic year. The eraser is to remind you it's okay to make mistakes. We'll work and learn together no matter what it takes. Now, you probably get an idea here that I'm hoping everyone can feel this for 2017, for themselves as well. The stickers mean we'll stick together and work hard as a team so that one day you can be whatever it is you dream. The badge is to remember there'll be ups and downs. But we know that smiles are much better than frowns. The ball is for resilience. Remember to bounce back and even if something's tricky, always give it a crack. The bookmark is to show you that you always have a place. If you ever feel a little lost, we'll help you find your space. The smarties are to remind you just how smart you know, I know you are. So dream big and work hard together. Let's aim far. So that is how we feel about our community. We guys, we're here for you and we want to know that. Want you to know that you're supported. We're not going to be sending out Smarties anytime soon. Maybe we will. But having, having a good time, I thought that was just a lovely, a lovely little. And gosh, this week, I have to say, I have just had the best time I can see. Gabrielle here is on the line. You and I had a long chat to Gabriel. He was so generous in sharing a lot of information about his recent renovation and finding the property that they've finally purchased and renovated. We were so excited. We did a couple interviews with him. You're going to be seeing those coming up. So wave. Oh, I see Gabriel put his hand up and down, I think, I think that's how you wave. But yeah, it was just so fabulous. And he'd made some videos for us as well, so can't wait to share that with you. And then yesterday, Damien and Anne Marie all the way from Tamworth on holidays, off to see Bruce Springsteen tonight. So they're not on the call live, but yeah, they've been Diamond Mortgage clients for many years and they wanted to drop in and say hi and, and yeah, really, really lovely, lovely people. I love the people we hang out with. And then I had another client drop in afterwards. Now, Peter and Joe actually had come to our Melbourne hot spotting workshop. Then they went to the Brisbane hotspotting workshop. They're now coming back to the Melbourne one in March, which we haven't really released the dates, but I'll tell you a bit about that later. And yeah, so they've, they've bought properties off the back of all the workshops and that's awesome. Joe is an absolute daughter matter, mad daughter. She just dotted Adelaide as well. So looking down there, interesting commentary about how small the suburbs are and how hard it is to find the disparity.

So come to, come to one workshop and you'll never leave.

I know, I know. And what's so great is like she, she was saying that we came up with the four or five suburbs in Brisbane and so she selected the one we came up with the sweet spots of the exact streets where to buy. She created that territory and she said to a buyer's agent, this is, these are the streets. I'm buying it. And the buyer's agent, oh, let's go a little bit out. And she said, no, this is the streets. Property came up, absolute winner, gone up in value. Ching, ching, very happy. So we'll be back. So that's so nice, so nice to hear these success stories. And then just to top it all off, just to top it all off. Da da da da. As you probably know, I've had a campaign to get Robert Kiyosaki on our podcast since last August and I think I've worn the EA down on but I spent a week with my mentor in January working on my vision and how to be better and be the best I can be. And I was talking about how I was frustrated with this and he said, well why don't you ask Kim? So ring emailed last week and said would Kim like to chat to us and lo and behold, yeah, are you free on Wednesday? So generous, wasn't she?

She was great.

We interviewed her yesterday, you know and you know just so many things that I didn't know about it and I spread sped read this book on the week and is just so good but just things like you know, she met Robert when they had nothing down to knocking on friends doors to see if they could beg to sleep on their floors to him teaching her a bit about rich dad. They had a business together and sold it, became financially wealthy and only after that did they write did he write rich dad, poor dad. Why she went out buying property.

Yeah.

Now how many, how many properties? Just put in the chat guys, I'm going to get an estimate, I'm going to send someone a book who can get the closest to how many apartments these guys own. Every single one is cash flow positive. How many apartments? Okay, come on, fingers ready? Go, go, go. 200, 300. Okay, multiples guys, think multiples. 500. Keep going. Okay, the last flurry.

689. That's very specific though.

758.

You go.

Good. Okay, last seconds, last seconds. Okay, it's closed. Oh, Deanne. 1450, 1450. The answer is 10,000. 10,000.

It's extraordinary, isn't it?

Oh my God. And you know she gave us some real amazing tips about it.

I should say with that though is she the. She bought her first one for 45,000. Yeah.

With a 5,000 deposit that she scrambled up to the day of settlement to find the cash for.

Yeah.

So you know, true rags to riches and really very strong and empowering women and yeah, just a great message and you know, really interesting, really interesting lady. And then we spoke to Kieran from Australian Property Investor. That podcast came out today. If you want to know what happened in Australian Property Investor magazine, listen to it. Just that I was relisting into it today. Just the information that he shared about the valuation process. With his 20 years as a valuer, his best investment was marrying his wife.

Oh yeah, that's right.

She comes From a fourth generation real estate. Yeah, Real estate business. Amazing.

Listen to this podcast.

Yeah. Darling, you know how I forgot your anniversary? Yeah, that's me. I'm the one who gets in trouble for getting anniversaries. And then Louis Christopher, we've got him coming up too. SQM research.

Yep. Also a good podcast.

So we just, we're just every single day getting to chat to inspiring people and sharing it with you guys. And we're really excited about that.

It's good. Well, it's great too, just getting those little, just little nuggets on because all each of these people are area experts and it's just all stuff then we can pass on too.

And look, I, I meant to say, look, I'm really, you know, we're. Yeah, we love chatting to these people. In actual fact, we chat even if we weren't recording to these guys. But one of the things that Kieran said that he'd be happy to do is being a Brisbane boy and valuing through many, many years in Brisbane. He'd be happy to jump on a webinar one night and take us through some suburbs. Is anyone interested in investing in Brisbane would like to have a little bit more depth of knowledge about some of the demographics and information about Brisbane if you'd put it into suburb spotlights.

Well, he knows those suburbs backwards, so.

Yeah, I better write down deanne's name.

Yep.

Otherwise deanne chat. Putting the chat box your address. I can send you that. So. Okay, so there's a few people up there. So that's, that's great, Sally. Another one of our hotspotting workshop people. Anyhow, so. Oh, and there's Jared. He's been to two as well. Talking about the hotspotting workshops. Yep. I did put on the Facebook page the poll. The poll Brisbane. No, Melbourne's winning and I didn't realize that sneaky people could actually add their own options. So we've got Wolf gong in there and whatever. So it looks like Melbourne's winning followed closely by Brisbane. So we're going to be running to. In March. At this stage we're looking at the 4th of March. For the 1st we'll probably be in Melbourne.

Yeah.

And people have already lining up for it.

So if you hadn't haven't voted on that page you'd like to type in, just put it in the chat box and we'll tally up because we're trying to work out where we will go this year.

I know there's a petition for Perth.

Yeah, I mean Perth's definitely, definitely doable if there's enough people. Long, long way to five. But, you know, that's all right. Good book.

Good. Exactly. Okay, so just see anyone. Sound issues.

All right, have a quick look.

Let's just check the sound. We can send a message. Can anyone hear us? Hello? Hello? Anyone hear us?

Just type into the chat box if you can hear us. Okay. There.

Got your back.

Oh, good.

Oh, that was easy because we didn't know how to fix that right then, did we? So much my mbm. We'll love it. Now, a bit of sad news from.

There we go. Something went on, didn't it?

Oh, I think they put me on a bit of sad news in our family. I did get an opportunity to spend some time in Port Macquarie with my folks and my grandmother. And there she is, Frieda Morton last week before last and she was living independently up until the age of 94, just before Christmas in her own home and had a bit of a fall and went into her home and yeah, unfortunately she passed away on Sunday and today is her birthday. She's 95. So God bless Nan up there in heaven. And we're all off to the funeral tomorrow. Back to Port Macquarie. But, you know, a life well lived. A woman who had nine children and. And had nine children on Flinders island in Bass Strait where she'd have to fly two months before every child to Launceston to actually have the child. And when she had her youngest daughter, my mother was the nurse on duty at Launceston Hospital.

Wow.

Mum was 18 and yeah, the. So but you can see there, this is taken two years ago. Incredibly perfect skin. Never ever seen that.

What was her secret?

Soap and water.

Soap and water.

Yeah. I've got more wrinkles than she has. So God bless man up there. But yeah, so it's been a really, A really big. A big year already and lots of excitement. We're going. We're off next week to do some planning, so. Well, we can't wait to bring you guys up to date with some of the things that we've got ahead of us as well. So that's about it from. For my month.

Show and tell.

Yeah. So what else can I tell you? Look, let's get into getting to the call. I know we have had one email with a question on. I know there's a lot of people with questions. I see there's a lot of you on the call and we can have a bit of fun at the end. I think we might.

Yeah.

Competition.

Put your. Put in chat if you'd like to have a shot at Suburbs against the Clock. We've come up with some pretty funny questions, we reckon. So we'd like to have a bit of fun and maybe see if you.

Give away your Property Success Club membership.

And if you've already got that, we might think of something else. Yeah, yeah.

Something fun.

Bit of. Bit of fun. This one might be included tonight, but there was one on the podcast that's coming up next one to be released, which was name 10 suburbs above sea level.

Right. And the fact that you think it's a trick, it probably takes you a while to think of them, right?

Yep, yep. And most of them. Most of them were. But it was nonetheless, it was a pretty hard one.

Oh, Lorraine. Nothing to be scared of. Nothing. Oh, gosh, Lorraine, now superstar. Come on. We're just in a throat show, I reckon, anyhow.

Yeah, that's what. We're just opening.

Yeah, you'll be right. Okay. Well, look, guys, as I said that. Where am I? Oh, we're over onto the. The make. This is not a tech support. Oh, yeah, tech support call if you do have any troubles, you know, please get to support property success.com and we'll try to help you as much as possible. When you do have a question, really ask that you put your hand up and I'm going to unmute your line. You're going to see the little hand sign there. Ra your hands in the icon in the sidebar menu and I'll unmute your line. You'll hear a lady say, your line's been unmuted and then you know you're on. If you don't have a microphone, that's okay, we can work with that. Just put a question in the chat box. I can see that, Sarah. In actual fact, Sarah put a question in before we even started the broadcast. So eager, which is good. And yeah, we're here to help. The calls typically go for about two hours for me, unless you. You don't have any questions and we should go home early since I have to be up four o' clock for a flight. This is good. Yeah, but no, seriously, there's no silly questions, guys. We're here to help and we will do our dandas to answer. Answer your. Your questions. So let's dive straight in, pop your.

Hand up if you'd like to ask a question. Otherwise we'll go to the written ones. There we go. Mark, I'll unmute your line. Wait a second.

Mark.

Mark, can you hear us?

Yes. Can you hear me?

We got you.

All Good.

I've got a bit of a building question for you. John or Jane? You can answer it if you want.

Jane.

No, I'm going to throw this one to John.

Go for it.

It's just a question about if I was going to move a kitchen in one of my rental properties and it's sitting on a slab and I want to move the kitchen to a different part, maybe three or four meters away. I'm worried about the plumbing because I want to do an island bench in this kitchen. And if I was to do that, what would happen? Can you cut through the slab? I guess, is my question. And what's involved. Is that a plumber's question or is that a structural engineer or is that somebody.

Yeah, typically. Typically it'll probably be a plumber. So just so I'm clear, so you've got a. The. The. It's an extension, is it. Or is it a. Is that what it is?

Just moving the kitchen to a different spot?

And is the whole house on a slab? Is that. Or is it like a separate.

Yes.

Okay, got it. And so you've got a kitchen there. You want to move it 3 or 4 meters across in the room and relocate the plumbing to the new position.

Yeah, that's basically what I want to do. Yeah.

Yeah. And you're confident you'll be able to save the kitchen by the sounds of things, and. And dismantle it and put it back together and it'd still be all good?

Oh, no, I'm gonna probably do a new kitchen.

Oh, yeah, okay. Yeah.

Probably a Chinese kitchen or something like that. Yeah. My main worry is about, number one, is it possible? Number two, do I need council approval? Number three, what kind of cost is that going to be to cut? I think the words chasing through a lab. And you do that and you know.

So a couple of things. Yeah, it's not as bad as it probably sounds. The worst thing, the water's. Getting the water to the taps and everything is quite easy. The. The hardest thing is getting the water away, the wastes. So. And it's kind of going to depend on where your current waste runs. So where the waste is basically the. Where the drain goes from your sink, which goes out into to sewerage. So it's just a matter of how that. Which way that runs in the room. Because if it was just a case of it was running kind of past anyway and he just had to get a big. What they'll probably do is drop a concrete saw in there or in some cases you can do it with A grinder, but most of the time it's going to be a concrete saw and as you said, chase out that section and then plumb into the. So it's, it's a hard one, I think, on the actual cutting of the concrete. And until you speak to a plumber and find out whether it's something within his. Something they could do or something you need a, a concrete cutter to do. But even concrete is. It's still. I mean, I've. I've done that with a concrete cutter and it wasn't hideously expensive, but it was maybe, you know, 600 bucks or something like that. This was a fair old. This is a feral cut, too, from memory. It was a long time ago, but yeah, I think until you get quite. You won't really know for, for that part and until you know where the. But. So the way to do it would be, though, working out where your sink's going to go and assume your dishwasher is going to be up next to your sink and then measuring back to basically where your current waste is or current sink is, and you kind of know that it's a minimum, that distance that you're going to need to cut into the slab to relocate the, the waste. The, the. The water should be reasonably easy because you can chase that with an angle grinder. That's, that's easy enough. Any, any plumber. Plumbers are quite used to doing that, but. Yeah, so unfortunately I can't give you a price, but yeah, it's. They do it quite. They're quite quick when they do it. It's. It's a messy job, but they literally just cut a bunch of lines and then dig it out with a small jackhammer, often an electric jackhammer or a kanga hammer, and do that. The other question you had about the permits or whatever, it doesn't qualify, you know, building permit. We typically say that what we call a structural renovation is basically what defines it as the building permit. In that case, it's internal works. So most people probably wouldn't get a building permit for that. Some councils, depending on the kind of works it is, have rules about if you're doing works over $5,000 or $12,000 and all that kind of thing. Don't know how they place it. Obviously can't tell you to do stuff that's naughty. But I, Yeah, that. That's probably about as much as I can say there. But you find a way of navigating.

That way you get a painter and easily spend five grand. Paying a painter.

Yeah.

You wouldn't put that through council, so.

Yeah, that's right. That's right. Yeah. So under the roof line there, you know that there'd probably be some questions around how hard that is to please. I'm not sure what your council's like but yeah, that's. That's my thoughts on there and the. The kitchens. Actually, Jane, you've just done this recently, haven't you? You've got some quotes for your kitchen, redoing your office and so on. And the flat pack or the. They bring them out from China flat pack and then they assemble them in the factory and I was surprised the.

Assembled cost was the same as the flat pack cost of the delivery costs. Yeah, no, but they'll the. I was looking at 60 wide and 60 deep, 73 centimeter high benches and just the two pack paint and they were 175 each.

Yep.

But they'll put them together for free for you.

Yeah.

So you can either buy them in the packs and get someone to put them together for you or put them together yourself and obviously courier would be less if you just have to pick up lots of packs but they'll put them together for you. So. Yeah, so we'll.

I like that option.

I like that option too.

Yeah, we've picked them up.

Have you got the info about that. That company?

Actual fact. John gave it to me on Monday.

So yeah, it's. I've been using these guys for a while. It's good kitchens and bathrooms.

Literally it's called good kitchens and bathrooms.

It's. Yeah, it's like it's been translated from Chinese in Google.

They did have to get two or three people to speak English before they found someone to speak English to me when I rang.

Yeah.

But yeah, they've been there a while.

I know they're in Sydney and Melbourne. I'm not sure where. Where else they are. There is equivalence because I remember speaking to guys early on in the renovator network and they were using very similar crowds that were importing from China flat back putting them together. Yeah. And they are their two pack. As long as you stick to really simple. Like most of the time in our renovations and developments we used to just use a plain two pack white cupboard and then we would. Years ago we used to actually we still do this. We get the bench top separately and we get like a. A replica Caesar stone bench top and we tend to still use 60 mil in our developments but with the waterfall edge. Yeah. Whereas that good kitchens and bathrooms and I think they're also called Maybe United Auctions, Jane as well. We've got a couple of them.

Yeah.

Names, but I think I went under.

Yeah. The good kitchens and bathrooms website, it's pretty limited. You just ring them up.

Otherwise it's kind of better to go in. But yeah, they also do a bench top. Their benchtop range used to be pretty crummy but it really improved probably about a year and a half ago. So there's some, definitely some bench tops there that would be perfectly suitable for kind of, I don't know, sub. Maybe sub. 600,000 renovations and also. And definitely fine for rentals. Yeah. But I think they're. I think they're restricted to 40 mil or maybe even 20 mil. Yeah.

Yep. Good.

Yeah, good way to go. Save heaps of money.

Sounds good, guys.

Anything else, Mark? Sounds like a bit of a. Bit of a. Bit of a Renault ahead of you. Bit of fun.

Yeah, it's a bit of a spruce up happening. I might do some before and after photos.

Please do, please do.

That's what we're after sort of in.

Planning at the moment. So probably gonna happen around about October.

Cool.

Great, Mark. Which is one thing I'd say with those kitchen places, if you can decide on your ovens and stuff early and get spec sheets so you can make just. If you're having wall ovens, which I assume you are, just make absolutely sure that they'll fit in those cupboards. Yep, yep.

Don't forget to use your renovator network Renault save card for the discounts. I picked up all of my ovens and things at Harvey Norman Commercial using, using that and saved, you know, a thousand bucks. So.

So who also do kitchen. So it might be worth comparing those prices too because I actually haven't looked at those. Yep.

Well, I'll be in the market for a fridge and probably. Oh, another quick question. Should I move the gas or should I just switch to induction cooking? Personal question, but what do you think?

Where is it? Where's the property?

In Melbourne Southeast.

Once again, it just kind of comes back to what the comparables are and the expectation and the level of fixtures and fittings that you'd have to renovate up to. I'd say on a standard, you know, $500,000 outer suburb. Suburb. You're not expecting Caesar Stone or induction cookware, but one of those inner suburb fancier suburbs where there is an expectation of that I'd be matching that expectation. So fixtures and fittings.

This suburb's Wantona south, which is. We bought it for 600 and now it'll be valued 8 to 900 now for six years but haven't done anything to it.

Yep.

Yeah just have a look what's on the market. Go to a couple of open homes. But it might and you know at, at that price point it, in my mind it'd probably justify looking at some of those higher end.

Yeah I mean we just do higher end and we still use gas. So I, I would still unless I was seeing it all the time, I probably wouldn't but it complicates things. Obviously if you're living in it, it's for yourself. It's a kind of different question, you know. But if I was just doing it for pure value add, I'd yeah, most, most of those things.

Are they much more expensive?

Not, not sure to be honest. We get our stuff commercially from. We use Miele these days so we get it from meal, a commercial but, but yeah that, which is about maybe 30% less than you're paying Harvey Norman or something like that.

It interesting but yeah, I'd suggest you go around and have a look at the open days and just see if there's an expectation for that, that kind of level of, of appliance.

Most of the, most of the way I think about it with, with stuff like that, if it's a little bit specialized I avoided. I just try and go for the. What the meat of the market will like and, and gas is a pretty safe bet. That's yeah for, for the most part.

Good. Thank you for your question.

No worries. See you Mark.

Now I actually had a question from Gabriel the other day too who after we talked about kitchens had said something around sourcing those Chinese look Caesar Stone bench tops.

Yeah. Actually I had a chat with Gabrielle on the phone today. We talked about that. But so there's lots of. I mean Caesar Stone and Essa Stone were the kind of main brands that came out early 15 years ago, 20 years ago with that quartz look and, or product and which is just a composite stone product which is basically quartz and glue and polymers and so on and since then a whole bunch of other smaller brands and stuff have, have popped up. But you can also get the no name brands kind of thing which are just imports kind of, I guess some people call them gray imports and most stonemasons actually have access to these things because they have contacts. Yeah, they have all the contacts in the suppliers and so on and they'll often, yeah they'll often be slightly different but you'll see a lot of the, a lot of them are the same like Two stonemasons I've used had the same names for a lot of the stone and so on. So obviously that was the same supplier. But yeah, it looks identical physical to Caesar Stone from what I can tell.

Where's. Where's as well.

It's. It's, you know, still hard as a rock, literally. Yeah, that's right. So it's. I wouldn't think there's any, any difference other than the, the branding personally. But yeah, so that's, that's the way to go there. But yeah, it definitely saves you probably about 20 on the Caesar stone. Caesar Stones. You're paying a lot for the name.

Paying for the brand.

Yep.

Now we've got a question. Sarah was eager beaver with her very first question there. Sarah, do you actually have a microphone so you can ask us your specific question? So we will open up the line. Hello, Sarah, let's see.

Put your hand up if you'd.

We'll give her a go unmute. It doesn't look like she's wearing a microphone. So Sarah's question here says there seems to be some overlap between Ripe House and RP data functionality. As I have limited resources. Which would you recommend between the two?

I almost think about what stage you're at. Like, if you're at suburb selection stage, I kind of like Ripe House. If I'm at suburb due diligence stage, I kind of of. Well, yeah, if I'm almost at the end of my suburb digital and I'm looking at the buying the house, I like RP data.

Let me think about this, because with our discount with Ripe House, you're looking at around 1100 a year because they're only doing the annual now and RP data obviously through our network. You can turn it on and off and it's 150amonth. If you. You can do statistics with RP data, like you can do the. Get the suburb information. Finding the sweet spots and where the renters are is something that was difficult to do previously, but now you can do it through microburbs.com and Luke over at Microburbs and I switched on a membership portal and then he switched it off. So it's. And then he had an email to sign up and. And now there's no email. So if you go over to microburbs.com au and you can actually go down to have a look at the tenant rate and have a look over the map and it will show you based on those microburbs literally, which is that smallest statistical information that Census collects, which is about 200 properties, which is what RIP House users. I mean we're big friends, fans of Rive House obviously and friends with Jacob. But you know, if I was thinking, you know, I really had only a limited amount of money, the fact that RP data allows you to set those territories. So I want a 3 bedroom house within 500 meters on 600 square meter block in a certain suburb. You can set that territory up and you'll be emailed, notified as soon as one of those properties come on the market. Gabrielle gave us a really great way that he was using it. When we had a chat to him, he was looking for that pricing disparity for the renovation properties and he highlighted the streets that he was after. And one of the things about RP data is that information is pretty much back ended into the Valex valuation systems for all the banks. So their desktop valuations come from that data source. So you can actually generate on any property your own valuation. And he was doing that within the street to see what the renovated and unrenovated differentials were. So.

Yeah, because he would do a, you can do like a, a trial one. So it's not, it's just for experimental purposes. So run evaluation and say the quality's poor, blah blah, blah and then run another second one and say the quality is great and fully renovated and all that kind of thing.

So you can, or as he did, run them for every property.

Yeah, but he was also looking to see where the housing commission were too. What exactly end of the street and so on.

Yeah, so and that's, that's where that price pin map can help. So if you, you know, go to the local council, download off the website the actual suburb itself and get the past sale data, which you can get from RP data and you know, maybe $400,000 properties to 450A green and 450 to 500 are yellow and just pin the last three years and you get a feel for what end of the street is more expensive and which streets are more expensive and it's time consuming.

But that is an excellent EXC tool and no one is, no one has yet to come up with a digital version of that.

No. So there's a challenge for you. Yeah.

So yeah, I think I like about RP data is when you're at the buying stage is just the negotiation, the information it gives you is so helpful. When you're in negotiations, you know how long they've been there, you, you can kind of start to build a picture of their situation and also those functions like you can predict on streets which houses are likely to come on the market based on the stock turnover in the street.

Yeah. So look, you know, if I would prefer to have both because I do like the ease of use of Ripe house. I like the interrogation. Jacob's added a whole lot more there around, you know, sweet spots and areas in the suburbs that outperform others based on proximity to schools and transport and infrastructure. So you know, there's a lot of functionality to do analysis on suburbs themselves. But then when you're getting down into that street level and the property level, you know I, I really like the RP data tool but you know you can, you can kind of use a few of the.

Choosing between your favorite from between your kids, isn't it?

I know it's like safest choice. It's a bit tough. So I think, you know, there's some really, there's some really good opportunities there to use that. But just talking about different reports and I might just.

Just the other thing you can do is if you really only had to, you really had to, you know, had a gun to your head. You had to have one or the other.

Oh God.

You could do, you could do the census maps using Jane's census tutorial and that in combination with the price bin. If you're just at suburb due diligence level, this is. Yeah, but the advantage of Bright House, you can do that across multiple suburbs with a click of a button.

Absolutely. So it's around functionality and you know, we're all about it but. But I just wanted to share with you, we've been working with. Actually I might just get you to click on that thing I put in the chat there. John, we've been working with Residex because as you know we do like the Resx reports and we do like the prediction reports that they do. So you can pay $250 around about that and use your discount from us for the 10% off but $250 for a predictions report top 100 report in Residex and what we find when we do the hotspotting workshops often is that our price point might be 650,000 DOL and so many. Maybe the top 20 of the hundred are well over a million dollars, especially in Sydney. So you know, it makes it limits. You buy the report but you may not be able to find any suburbs that actually suit your needs. So what I have been doing is giving them a little feedback and helping them out in what our needs are and to their Credit. They've come up with a kind of specialized Residex predictions report for us. Now, what I really love about this. So basically the base cost of the report is $20 and then it's $10 for every suburb you select. So let's just say. I just want to do a little demo here. Let's just say we are happy to pay $15. So 150 bucks for 15 suburbs worth of data and the base cost of 20. So $170 still cheaper than the big report. We might want all of Australia or we might want country New South Wales and we might want houses, all houses and units, but houses. And we might. Tell me if you're excited about this, put it in the chat line. I am less than 3. Between 350 and 450,000. And let's just say you can talk about the median rent being the yield or you can talk about it being per week. So, you know, let's put in a minimum of 4% yield and the minimum predicted growth. So let's just say we want, you know, over 7% growth. Now what happens up here is that there's only 13 that. So I've said 15 here. So you kind of play around here. So, you know, if you went up and you could sort by whatever you want to sort by. So capital growth, for instance. But if you went up here and said, you know, I'm happy to pay for 25 of these and I'm looking across all of Australia for properties between 350.

Yeah, it's pretty mad, isn't it?

And 400. And I want a minimum rental yield of 5% and I want 9% growth. Then based on your selection, there's no predictions. So you can play around with this and just see, you know, look, there's five suburbs across Australia that have this like the pokies. Yeah, I know. This is kind of like, what's that? Real estate investor. I've seen people get on that and like at 2am they're like, why am I searching for, you know, water views with granny flat on, you know, on slopes or something. So. So this is great, guys. I hope you, you see the value of this because this is really, really cool. And it means that you're not buying a report where most of the information isn't relevant for you. So I hope you're really happy with that. Get into the bonus section, your Property.

Success Club and Ultimate guide.

Yep. And we've also thrown into the bonus section the Terry Rider reports too.

Discount on those now, too.

Yeah. So yeah, always out there, always negotiating, always trying to.

All the stuff we use at the workshops.

Yeah. So that's good. And can we, can I just mention the fact that with the workshops we've. We're almost ready to have an online version of those coming up maybe in the mid year. Yeah, yeah. So we've been working pretty hard on that to make it cost effective for, for those who, who can't get to the workshop. And you know, obviously you get the workshop, you walk away with a couple of suburbs you can buy in straight away.

And we've seen the Ultimate Guide. Obviously all the Ultimate Guide to Renovation have got access to, but if you're just in your property success club or Investor's Choice. Yeah, or Investor's Choice and be an easy or a way to get access to that without, you know, if you didn't want to pay the full $2,400 for the ultimate Guide to Renovation.

So that's all good. Glad I could share that. Now we have a long question here from Chrysia, who was kind enough to email this question in because I have to be honest. Well, I haven't had a chance to do a lot of analysis on this, so we will do it live with you. So Chrissy, I don't know if you're got a microphone and you want to have a little chat to us first, but yeah, we'll more than happy. Fabulous.

That'll make it easier.

Hi, Chrisia.

Ah, hello.

Welcome.

Ah, thank you.

It looks like you've got some exciting times ahead. Tell us what you're up to.

Oh, well, a lot of searching and found this property in Castlemaine. It's an old weatherboard property and a lot of the weather boards have deteriorated. Look, there's a lot of problems with the property, but it looks like, you know, it looks like we can, you know, if we can keep to budget and choose the right things, we will be able to make a profit on it.

Right.

Castlemaine was attractive because it, while it was increasing in price, it wasn't skyrocketing.

Yep.

And yeah, we thought that was for newbies like us. It was a good area to look in. Yep.

Yeah.

And so we've been umming and ahhing and you know, trying to work out what we can do to make this place kind of very appealing and keep within the budget.

Yep.

I have already met with four builders and one landscape.

Wow.

Well, you know, I know it's probably more than normal, but you know, for a beginner it was.

Great.

Then the set next. Not this Saturday, but the Saturday after I've got a lineup of electricians and plumbers. You know, I'm just interested in learning and hearing what they say and where they're coming from. And some are in, you know, more detailed and others are just sort of more slap dash. Interesting.

Have you actually purchased this property?

Well, not yet. It's supposed to become unconditional on Monday but I have just requested an extension on of two weeks and I put that in on an email and letter attachment on Tuesday to the real estate agent. I know he's got it. I haven't heard anything.

Yeah, exactly. Well, we won't, we won't say much about the, the address if we can hide it. But I mean, you know, just, just talking about it, you know, one of the things that I would like to do is get a bit of a feel for what's happening in the suburb and the suburb or the town itself. So once again, RP Data Professional. I just go into the. This is the Suburb Statistics report. So it just gives me a bit of a feel for that population and what's happening there. So population growth between the census. So I like that. Between 2006 and 2011, obviously there's a.

Lot of kids, you know, they call Castle Main North.

What are they called?

Northcote North.

How come?

Because everyone from Northcote kind of packs up and moves to Castle. That's truly.

And that's what's happening is because it's quite affordable and what I've been learning is that a lot of young families are moving in there and it's quite a kind of people have sort of said, oh, you know, the coffee shops are full and Saturday mornings and stuff. And it's really. There is a kind of, you know, quote unquote trendy vibe about it, elements to it. Yeah, yeah, fabulous. Well, and it's got, I think it's got 21 train services into Melbourne a day.

Wow. Okay, so that's good. So, well, this, this kind of tells.

Us people are commuting, commuting to Melbourne, they're commuting to Bendigo, commuting to Daylesford to work and this. And, and they, you know, according to the real estate agent. I mean, I don't know if this is true but you know, you're saying, well, there's a saying in Castlemaine that if you're unemployed, it's by choice.

There you go.

That's good.

Well, that's good. It's all about jobs, growth of property and I mean, this is telling us there's 71% of the areas owner occupied. So that kind of ticks our 30% renters criteria. Now the median price here is saying around 560. And you know, if I just pull up and have a little bit more of a look of. So it's, it's an interesting. I just want to have a look here because you said that you're, you're negotiating the price. At the moment.

We're on the wrong, we're on the, we're on not the 560 side of the railway track.

Okay, good. Now we've got, okay, so there's 148 sales per annum. So I was a bit worried about that sale data because, because you know, if you, when you target some of these smaller towns or suburbs, if you don't have, you know, let's just say 8 to 10 sales per month, sometimes you're looking in an area where, you know, especially where there's that owner occupier demand, you're up against people who are emotional and you're just gonna get, you know, two, three, four, five, six months down the track and going, look, this is all too hard. So it looks like it's got quite a few sales to it. Just jumping over to microburbs just to get a little bit of a feel for it. So tell me about the wrong side of the tracks.

Yeah, so the wrong side of the tracks was, is now becoming popular.

Okay, good.

The wrong side of tracks are now becoming popular because the right, the so called right side of the tracks is expensive.

Okay.

So people, people are picking up properties on the wrong side now and you know, choosing to do them up and live with them or subdivide or whatever.

Yep.

Yeah.

Okay.

And that's happening.

All right.

And so the price point that you're actually looking at at the moment is, is what. Numbers. The, the numbers that you're, you're quoting because you, you're thinking about flipping this, aren't you?

Yeah, that's correct.

Yeah.

So the starting price, its advertised price was 329,000, but that was clearly too much for that property. And we're settling at the moment on 285. And yes, we've got a $50,000 allowance for renovations with the $10, $10,000 contingency. Now we hope we probably put it on the market for 435, but we need to get 413 to give it a 10% profit on cost.

So the 10% profit on cost. So we're talking 50 for the Renault 15 for the legal and stamp duty holding costs over what period of time?

Yeah, yeah, yeah. Six months.

Think we worked it out 65. So you've got about seven. So around about 72 selling costs, about 2% of that 400ish. So we're looking at around about 10 with marketing. So when you're talking about profit. So the costs are around 80,000.

Yep.

You're ahead of me now. I haven't got everything in front of.

Me, so I'm just thinking a 50,000 base, 15,000 for stamp duty. So I'm at 65. Around about 7,000 holding costs and around about 10,000 selling costs. So around that 80, 85 mark as in costs. So if the property, you purchase the property for 285, and we're talking around 85 in costs. And so that gets you to around 370 and you sell at 413.

435.

435. Or what was the 413?

Well advertised. Advertise. Yeah, advertise. Well, we think we advertised for 435, but we're thinking our absolute minimum to accept is 413.

Okay. So at 413, that's around 43,000. So that's around 50% of the cost. Yep. So if the costs are 80,000 and your profit is around 43 before tax. So one of the things that we try to do with the renovations is make $2 back for every dollar that you spend, just, you know, dollar for dollar. So 50,000 a renovation would hopefully add 100,000 in value. So, you know, you're. So you're taking that 285 up to that 385 point. So, you know, that's kind of the value and that's kind of covering the costs of the renovation, the holding and everything else. So that at 413, 43,000 would possibly be your profit, and then your capital gains tax would be on that. So depending on whether you bought in a company, etcetera, or your tax rate, you might be losing 30% to 40% of that as well. So you're looking maybe in your worst case scenario at 25, $30,000 profit. Which is a profit.

Right.

Which is good. It is, it is.

And the thing is, it's the first property. And we spoke about that with the accountant. And because it's the first property. First property. We together, we decided to do it through a partnership.

Yep.

Being, you know, fully aware of the tax on that.

Yep.

Okay, cool. So that's.

Yeah, a lot of work for 25 to 30,000. Yeah.

I don't know. If you could do two of those a year and make 60 grand hanging out doing renovations, most people would be happy. But the only.

Phenomenal.

Absolutely. And you know what? The thing is, you don't have to take a hit to learn how to do things either. So just be mindful of that. And the cost of renovations. 50,000 on a 285 spend purchase does sound a lot to me. So just running through what you had said with your costs, I think you're.

Saying that you have to have a look at the property. But, you know, the thing is, neither of us have experience. We're pulling. We're literally pulling tickets out of the air.

Okay. And this is great that you're talking to these builders. I mean, you're doing exactly what you should do. A lot of people pull the numbers out of the air and then only substantiate them after they've actually purchased the property. So they have to almost make it work. So you're in that due diligence stage in the next two weeks. Weeks where you can do the numbers. I suggest you jump into module five and get the quick quote calculator and use that to try to calculate up your costs for the renovation. So there's a lot of. How would you describe it, John? Tab by tab, room by room, trade by trade. You know, the kind of work you're.

Looking at, if you know your measurements of your house, and you can be quite rough too. You know, if Your rooms have 3.6 by 3.

I did have a quick little look.

At this property and then just. I would think about that resale value, because that's probably the most. I mean, one I'm thinking about yet. The. The renovation cost sounds high, but if you're bumping it somehow into an upper category, like forcing the value, like adding an open plan or adding a bedroom and stuff like that, then that might be justified. But I would want to see really strong comparable sales. And I'd be thinking about it the way a valuer does at. At that, the 435, you know, or, you know, the 420 kind of mark, knowing that you're probably going to have. I mean, the turnover was okay there. You want to make sure that that same turnover was on your side of the tracks as well, that the places were selling regularly. But yeah, you want to have good, really strong comparable sales. And not the best houses in the street either. The ones that are kind of more to the 70, 80% mark on the street.

Well, Look, I've just jumped into Suburb View and Castlemaine. So you know obviously that there's a right side and a wrong side. And my only concern would be that that 435 is as John said, they may not be comparables and that price pin might help you do that. So RP data for instance, or even speak, if you don't have access with that, you might speak to the real estate agent, say can you print out three years worth of past data for me of three bedroom houses?

A selling agent, that's a perfect opportunity to do it. And there's nothing wrong by the way.

Why go back three years?

Well, you want to come up up for proof of the purchase price, the fact that the renovated properties justify that in your area. So you probably would do.

You're looking for the patterns in the streets so you can use in a really hot market you can use two years. But I would say just what we've seen there would justify three years still. And you're looking for those patterns in the streets which have got a nice spread of values. So this is to use and you can find out which end of the street or which side of the street, but it shows you that spread of values which is, you know, nine times out of ten that's the difference between the unrenovated and the renovated property.

Because we're looking at these numbers here and we're looking at medians and they're talking, you know, three bedroom medians around 4:70 we saw now this is on Suburb View, we saw on microburbs that those numbers were around, what was it? 500 got up to around 500. Now because you also because you're flipping this, that whole, you know, where do the renters want to live is not relevant because it's not a you if you're flipping your target market is very much towards the owner occupied, not the renter. So you want to be in the area where the owner occupiers want to buy. And you, you've kind of looked at this area well and you know that there's you know, movement of people moving, you know, from the city out to the tree change and commuting. And we can see here just in RP data, you know, there's been substantial jumps. So I wonder around this December number. This 560 to me looks out of whack. It looks like there's probably a couple of high priced properties that came on the market then that, that skewed this. But that 440 to 470 mark kind of seemed doable. And if I go up here, this is the kind of data, like if I go Castle Main, this is how I would use RP data to do this. So back to Sarah's question. How could you use the money, the information? Now if I went over to where would I go? Census and I would look at the census data and I just want to validate that it's three bedroom. I think you're concerned that this has been marketed as a three bedroom but the third bedroom is really an add on annex in the back is justified. It is just looking and I'm not going to bring up the floor plan just because I know it's got the address on it. But if I Look at this, 50% of people want a three bedroom property. They're marketing it as a three bedroom. But I question whether that third bedroom justifies being called a third bedroom. But let's just go over it and look at the analysis of the three bedroom property.

I spoke to the real estate agent about that because that only came to light with the custom building inspection. And I said to the agent, I said well this, how can you call it three bedroom? Because it's not a habitable room. We can't even use it as a study. And he just sort of looked and he said look, what do you mean? It was all done ages ago and it's always been used as a bedroom. And there you go.

Basically ask no more questions. I'm just going to show on this way I hide my screen elsewhere. This the third bedroom. So the size of that third bedroom is 2.9 by 2.3.

What we intend to do is get rid of that toilet there and lengthen it, extend it. Yeah. So make it into something a bit more space. Certainly not the right height but well.

I mean I can do a bit of analysis here on Castlemaine. You know if we there's 5,500 houses properties and if I talk about how many three bedroom houses there are all of a sudden we get down to 1,383. So you know where it says about 50% of them are three bedroom houses. That's interesting in itself. If I jump over to SQM research and I put in Castle main, what's the at 700 or something square meters, isn't it?

730.

So if I jump over to Castle Main, this is. I was telling Louis the other day I love this search functionality. Never heard of anyone using it like this before. So I've got 1,000 square. So I've got 500 square meter properties here. So that around that 750 is that looks to me just, you know, this is kind of off the cuff around a typical, typical sized area. And if I look at that I can come down and say look, land size, you know, I want between 700 and 800 square metres. So you know the typical type of property in that typical area. So I can come down and do.

That.

And then I can refine it and let's just see how many houses come up.

Are you looking at sold properties?

No. So this is just all the properties. So I haven't even got to sell. So then I go to sales history. Now this is recent sales history. So I've only got eight recent properties that have sold. So these are all up around that 700.

This is still all of Castle Maine, right?

This is still all of Castle Maine. So I've got a 525, 320. So this is where you can determine for instance what has been sold. So if I just look up here, this sales date here is just the last six months, if you can see that. But if I extended that out I could possibly go to back. You can see why you might go to three years because you're actually trying to get the. I have to click on that, that.

Enough data to make an informed opinion.

So we want to.

I'm still, I'm not, I'm still not getting, getting it completely. Why, why three years? Because that's that historic data. It's just like how can you make it comparable from three years ago?

Yeah, I mean good question. If we look at say for this, where we're looking at recent medians but if we, you look over 2014, we were around 2014. 465s, 340s, 390s, 2015, 360s up to 400 2016, 370s up to around those 400s again. So there has been growth in that area. But what we're seeing with looking at the sale data is actually building up. There's only been 30 properties with those criteria sold in those three years. So you're looking around, although there might be 120 or so or 140 sold in the year, we're talking about really specifics of what the typical type property is. And if we look at you know, some of these, like let's just say we jump into this one because it's an older style, you know, we get a feel for in March 2015. So we get a Feel for renovated or unrenovated. So unrenovated property. It's got some polished floorboards. You know, they've done a bit of work, but obviously a bit of landscaping and they've painted the outside. But the kitchen has that older. Has the. Pretty much the same fireplace that you had and the same kind of range hoodie thing. So this is, you know, something that sold this time last year. So we're starting to get some information here and we start looking down here and going, well, it sold for 315. It we get at that stage. You know, there's been a 21% change in the median in the last five years, 5% in the last year. We get some details here about the property itself. It did have ducted air conditioning. 1940s period home sale price 315 was listed at 329. So we get a feel for the discounting and we can see what the rent was as well. 295. So. So, you know, by just using this tool, you can start going through, like I was saying Gabriel did with the properties in the street that he was interested in and seeing, you know, what did they look like, were they renovated or unrenovated? Because you get that feel for, you know, is it near the area that you're looking in? So let's just. This is another little cutie. Where do we see? So this is this little one. I don't know if cutie use really a technical research term, but if you come over here to sound me frustrating, come over here to this map view on the side. The map view on the side. So we can see the property that I've just selected here. And I can zoom in and zoom out with that. But what I can do is I can actually add some layers here. So I can see what sold in the last three months and six months. And I can ask any sale data. So I can actually see what properties have sold for. So 2013.

This is great for your comparable sales.

Yeah, it's amazing, isn't it? So this gives you an idea of, you know, what's happening in that. That area as well. So you can start looking, looking at the sale data. Just trying to. I've got all these different.

And you've got your date range there too. I think where you were going with that, the age of the data too. When it comes down to looking at the value of your property and trying to work out the market value, then definitely the recent sales are going to be more appropriate for that. What we're trying to do using longer periods of data is work out where there's a pattern, where there's a stretch, where there is a difference in price. And the only real reason we're worried about making it too long in that case is that the bottom of the street has time to catch up with the top of the street, if that makes sense. So we're not actually worried about if the price is accurate to today's price. It's more about seeing the pattern of spread of values.

So I mean, that's kind of how you can use the RP data to get that information. But I mean, just generally your ripehouse.

Would be a good one too, if, you know, roundabout where it is, just to check home ownership, that kind of stuff.

Yeah.

So if we go into Ripe House and have a look here, I just. Some of. Just looking at some of the, you know, costings as well. And this is a really good idea. This is, you know, great that you're actually talking to the builders. I've got here. Builder said 10,000 for each bathroom, another 10 for the kitchen, that's 30. Thought of using a handyman. You've got some questions here about hourly rates. So handyman at $45 an hour, builder at 60, $70 an hour, electrician, et cetera. You've got question here, John, for you is what would we expect the tradies rates to be?

Yeah, we've got some asbestos too.

And the problem with that is that you can't, especially in regional areas. And even the conversation we have had with Gabriel about buying in Wollongong was that the trades can be more expensive regionally or where. You know, I know in, in Queensland when all the guys took off to the mines, all of a sudden the, the cost of trades went up. So you can't necessarily use those, those quotes that you might get in Melbourne for what's happening elsewhere as well.

So just might be worth just trying those, seeing if guys wouldn't mind working up, you know, if you, if they had a good reputation and so on, on. Might be worth seeing if they'd be tempted to go up. Go up there. Yeah, those, those numbers don't. I mean, they look a little bit on the high side from what I'm used to seeing, you know, you know, by five, ten bucks an hour. But, but that would probably be about right for there. I imagine they've got, they've got a bit of a captive audience the, the guys that are set up in those towns.

Right, right.

And then the other thing is you might, I don't Know if you've considered the owner of option of owner builder because you might find a for instance.

Actually, yes, actually there was one option I spoke to. Well, I thought he was a registered builder and as I was saying goodbye, I just looked at him and said, are you a registered builder? He said, no. He said, no, no, no, no. You know, and he was the guy that was actually recommended by the real estate agent. The real estate agent is actually using him for his own property.

Yeah.

And he says, you know, this guy's really good.

It's certainly worth considering. The danger with it is there's a whole bunch of dodgy guys running around a few years back who would say, yeah, I can build the whole thing for you, but you go, own a builder because I don't want it on my warranty insurance because I've got too many jobs in my warranty insurance this year. And then they would do an average job and there'd be, you know, dispute with the money and so on and they'd, and they'd run off and any, any stuff, you know, structural defects or anything that you were left with was on you rather than the builder. Even though you, you know, they carried out the work and told you if.

You were trying to sell it in the future then, and you don't have.

That then that you're, you're essentially giving warranty insurance on that, on that house. So that's the danger of it. The, the up. The pros of it is that if you get a, a carpenter, for instance, that you really trust and you know, they come with a good history and you can talk to a bunch of other people that have used them, then you can cut down. But doesn't. But perhaps they don't have a builder's license. They can easily run the job. The carpenter knows, you know, the ins and outs of a build back the front and coordinate the other trades and you might only be paying them, you know, $60 an hour instead of, of, you know, or maybe even less instead of the builders.

Right. Well, this particular, this particular guy who wasn't a actually licensed builder, he was charging $50 an hour.

Yeah. Generally in Melbourne, 45 is the kind of going rate for most guys apart from plumbers and electricians who happen to think they're rocket scientists.

Electricians. 70. Yep.

What are the going rates for electricians and plumbers in Melbourne?

Yeah, it'll range too, but you know, typically, you know, $70 upwards.

Services seeking I. Services seeking I jump on and I've used these guys to get quotes a Few times. But one of the things that they do do is they have a really great report that tells you sometimes per suburb how it's a newsletter, latest view, latest prices, interactive price map. So let's just have a look here. So we're looking in Victoria and we're looking at how much does it cost to renovate a home. Latest insights Victoria is Australia's cheapest state to hire a trainee. Cost of a kitchen renovation, bathroom renovation, paint a house. If we're looking at electricians $73 for first quarter 2017. So prices have gone up and plumbing 78, tiling 54. So that might give you. This is a really cool little tool just to jump in and yeah, pretty similar. Have a look at kind of those prices as well. But you might actually find some interesting information there. So and this is, I'm just looking at ripe house in this area and I'm assuming the area to the right of this yellow is the good side of the railway and the, the left is the cheaper side. Is that right?

Correct.

And the only reason that I made that assumption is I'm looking at these 200 property kind of geographical configurations and I'm seeing some sold prices around 520 and then 500 and 365 at 510. But then we start moving up over here to you know, the eight hundreds and what have we got over here, seven hundreds et cetera, even higher. So what I'm just looking at here and I kind of, you know, you know where your property is, occupancy types. So that yellow, the more yellow which is where the renters are. So this is usually characteristic of being close to, you know, this is the train line here. So we can see the renters are closer to either the freeways, the train lines, the transport. It's a little bit subjective in regional towns but you can still see that we can see there's only 11% of the entire suburb is units. So you know, this is where the units are once again where some of the renters are. But if I click on this little section here, the rental unit, sorry the unit density is 17% over here is 40 but in these little sections 12%, 7%. So you know, smaller, smaller percentage of that area. Some sole price information that's interesting but you know we've got the lower quartile, the suburb medium, they've seen around 400 for the suburb medium and the upper quartile 479. And if we just, just did a kind of a sweet spot. So we were Looking at there's In Castlemaine there's 19 of those kind of 200 residences. Geographical little census details. So if we said the occupancy type, you know, here we're looking at you know, 45% tenants, we're actually probably looking more down here because we're owner occupied. So there's. Of the 19 suburbs, you know, 14 of those have come up now that are more owner occupier based percentage units. You probably would make a assumption that where the owner occupiers are you didn't want to have a huge area of units. So we might just bring that down to 14%. So we're still down here. Rent per week you don't really care about because you're flipping. So your target market is owner occupied income. We do want the maximum because owner occupiers are usually those ones that, you know, aspirational. We learnt from the information on RP data, suburb report that they're mainly professionals so we want to have that higher income level yield not so important. So if you apply that there's actually 12 suburbs, 12 within that selection that actually meet that criteria. So you'd want to, to, you know, when we're looking at that kind of sweet spot, elements of those 19, you know, in actual fact if you concentrate around these areas then that's where the owner occupiers want to be and we've seen that when we tip this on, we saw that the renters were in this area here. So we can overlay that and see that. So public housing. Oh there's a lot of public housing down here. What do we got? Public housing, 20%. So yeah, an occupier, you may want to stay away from that area for instance. So you know, give you a little bit of an insight. I think what we would want to see and I think if you're in this area over here, what we would want to see is some sold prices that substantiate that.

Ideally in the street.

Yeah, in your street substantiate that three bedroom property. Let's just hope this one's a three bedroom. So that's the kind of questions that I'd be asking. I think going to the builder, getting the extension on the time, doing your due diligence, just getting that real estimate down. 50,000 did sound a lot to me to do the renovations. I just wanted to see what these three bedroom houses are.

Yeah, it would be great. I mean, you know, hopefully we are too generous.

Yeah, absolutely.

It's just, it's just so Hard to being your first property to. It's just hard.

It is with not knowing it is.

And I don't think you do this process properly until you actually put an offer on the table.

Yeah.

Like so this is why we always recommend that, you know, put a conditional offer in and then do, you know, do the full on due diligence. But it's not until you go through this process a few times that you really start to get good at it.

Yeah. And the thing is that you're following the process. You're in the ultimate guide to renovation and that evaluation techniques. The dot map, arguably you would do to get to Castle Main. So you're in Castle Main, so that's not necessary. The price pin map as we suggested, gives you an idea of what those prices are and the sale price or.

That RP data tool that we just had up there as well.

And you know, you can start getting that information and then you get down to, you know, finding the property and there's like the five checklists that we go to or evaluate the property, download those and just go through them and you know, whilst. And then get. The checklists are over module three and four, aren't they?

Yeah, I mean we're gonna have to look it up.

So I just got five in my.

Head now because I was looking at it today.

Calculator. I can even say it now. Just gets better and better.

So it's four. I'm pretty sure it's four. Module four.

Okay, so let's just.

And how much. What about asbestos? The removal of asbestos. Like how much is that?

Just get your quotes. It's, it's. It can be sometimes surprisingly good. But you know, typically it's hard to. What they do is they come in, stick plastic everywhere, wet everything down, take it off, wrap it up in plastic, wet everything down again and take it off to a registered place. But often they'll charge by the meter. I've had laundries taken away for, for instance, maybe 600 bucks. Sheds for under a thousand. But it'll depend and depends how many guys out there are willing to do it. But it's just hard to know because plumbers some places I found when I was living in New South Wales, the plumbers were all into asbestos removal. Don't know why, but.

So there you go.

Sorry.

Re stumping. Re stumping versus floor leveling. I mean, how do you choose when to do what? I'm presuming from what doing. I'm understanding the leveling is cheaper.

Yeah, it's definitely cheaper. Yeah, it'll depend builder will be able to give you a good view of that. And that's a good thing about getting the number of quotes like you're getting is you can start to build up a picture of things, you know, with the overlap that the guys tell you. If it's really bouncy, like if all the joists really bouncy and stuff like that, but it's not diving down at the corners. And often what you'll find is the rooms to go in is rooms like where your chimney is and stuff like that. Because a chimney's, you know, big brick structure, very heavy, and they need to put a foundation under it that's really strong and deep. So often they'll have the stone foundation that goes right down to the clay, so that sinks at a different rate to the rest of the house if it's a timber house. So the. If you go into a room with a chimney, that'll be the one that shows up the restumping the worst. Because the corners on the opposite side of the room will be sinking, should be visibly sinking. So if it's. If it was, you know, if you could see that and it's more than, let's say, 60, 70, 80 mil, that would probably suggest you're going to need to do some restumping rather than just some re blocking. If it's not, and it's just a bit bouncy and stuff like that, sometimes you can just get away with wedges and a few blocks here and there and the odd stump and something like that. It might only be, you know, a thousand to $2,000, for instance, or even 500 to $2,000, depending on. On how many re stumping. If a place needs restamping, I generally. And we talk about this on the property inspections and the workshops is there's kind of the big kind of tens. I. I call them the tens, which is ten grand kind of. I almost write off immediately, and that's the re stump. Like, if it's a full house restump, I write off ten grand. If it's a full house replaster, I write off ten grand, and it's a full house rewire, I write off ten grand. So they're the. They're the. The big ones. Yep.

Oh, my God.

Okay. And what about the driveway? The driveway's got all these patches of broken bitumen on it and, you know, making it quite rough depending on the area.

Like, it's always that rule that Jane talks about, looking at the. What you're renovating up to. So what's the standard for the area? One of the cheap ways you can do it, if it's appropriate for the area, is covering it with. With road base and then a material like Lilydale topping. So you literally cover the old concrete, which makes for a great foundation with about, let's say 100 and maybe 100, 150 mil of road base. And then you get a, what they call a compactor, which looks like a lawnmower with a plate underneath it. And you run up and down the. You know, you screw the driveway off so it's nice and straight with a straight edge. And then you run the flat lawnmower up and down it until it's nice and compact and that gives you a base and you wet that down and that. That becomes really solid, you know, like you couldn't put a shovel into it, it's that hard. And then you put a covering.

You don't have to grind. You don't have to grind the surface first to do all that.

No, you just go straight over the top.

Yeah.

The only place where you might need to do a little bit is where it meets the footpath. So you might just take out a section there so you can feather into the footpath when it's done. But that's. That's normally. Yeah, I've done that before. But again, if no other houses in the. Around the place have got a stone driveway, if they're all concrete, you know, and. Or immaculate stencil creed or something like that, then that's kind of more the norm for the area. And I'd be thinking about then, about ways of how can I minimize my costs in getting the norm for the area, which might be, for instance, concreting and then putting an oxide in the concrete rather than trying to match stencil Crete. If all the other ones were stencil creed, something like that.

The other thing. Look, I'm just in a. In Facebook, Chris. I've just pulled up in the Renovator network. Have a chat to Chris and see if you can connect because they're doing flips of small units and houses in regional dubbo, so she might have some. Some thoughts as well to share with you. So make sure you use the network. So I hope we have helped you.

Thank you.

Thanks a lot for that, for sending your long question in. But I'm sure everyone else got a lot of benefit from it as well.

Make sure you're here next month because we want to hear the.

Yeah, we want to hear what happened.

Absolutely.

Get the Feedback. So we'll be watching for you.

And if worse come to worse and you had to move on from this deal, don't feel bad about it for a second because it's all part of the process.

Absolutely, absolutely. If the numbers don't stack up, don't try to manipulate it to make it stack up.

Yep.

Cool.

Yeah.

Thank you so very much. Oh, John, we've got some hands up too. Thank you. Have a good weekend. Almost.

There we go.

Yeah, bye.

Bye.

And Ravi, Lorraine. Ravi.

Oh, go on, Ravi.

Ravi. Hey, Ravi. We see a hand up. Did you have a question?

Little microphone waiting for suburbs against the clock, Mommy.

Yeah, well, Karen's put a hand up for that. I know Lorraine said absolutely not. Okay, Ravi, if you have a question, do you want to try chat it? Put it in the chat for us and we'll go up and have a chat to Lorraine.

And I'm still on you. I'm going to come back to me. Here we go. Yep. Beautiful.

And Lorraine, you get ready. Get that microphone. It's always good to hear what Lorraine's been up to.

What have you been up to, Lorraine?

Renovating.

How good?

We love it when you say things like that. So tell us now, you were doing something with your daughter, weren't you?

Yes.

And how's it going? Take us. Take us through it. Take us through it.

Well, we got early on Access in maybe mid December, painted the outside. We have spent about 23 days between the three of us, you know, some of us being there all day or, you know, half days.

Yep.

We're just about finished. We're putting it back on the market about mid February. And at the moment we've been interviewing agents and property stages.

Right.

Because we want to stage.

I think we've got a checklist for that. Did you find the checklist for that one, Lorraine?

Oh, God, no, I didn't look.

Sorry.

That's all right.

I've been busy.

Let's just. It might save you some time.

It might save you some time.

Yeah.

Module 11, I believe.

Yeah, all right.

Yeah. 10 or 11.

I will have a quick look because I haven't decided on which one to use. Yep. So we have, you know, they've all given their prices and, you know, told us what they'll do. So it's amazing too, the difference in costs. But yeah, we did have our builder walk out on us.

Why?

Because he had.

Oh, he didn't like the plumber.

Okay.

Oh, good.

Okay.

It was ridiculous. You know, apparently the plumber, you know, left a message for him. And said, you know, do the bath at this high.

It just.

The builder took the information the wrong way, didn't like what the build, the plumber said and said to me at the end of the day I'll get my cash. And after he got his money off me, he said, that's it, I'm not coming back.

Oh, precious. Okay, that's difficult.

It was good.

It was really good.

Yeah, because.

Absolutely. And by the time I went to the end of his street, I already had another builder.

Oh, fabulous, fabulous, fabulous. And so, so tell us the round numbers, the purchasing numbers and the 270. 270. And renovation cost around 21. And fabulous. And what about maybe, maybe 22, maybe 22. But holding costs wouldn't be long over that. Four months either.

Holding cost is only. No, no, no, no, no, no. I've only, We've only paid one payment so far.

Great dollars.

Great, great.

So you'll be out of that by 2, 3. And, and what about, what's the end value? What are you seeing in comparables? Well.

When we had the agency in the beginning of the Renault, they said between 360 to 380. We believe, believe we'll get. Well, I don't know. One of the ladies suggest. And the sales that are happening at the moment, I think I, I said the minimum was360 and we get about a35,000 after everything, after all the taxes, after everything. But I, I think we might get up to about 380.

Wow. Fabulous. Was there a question about your daughter keeping this one or. That was the last one. No, no, this is a, this is a flip. Definitely a flip. Did you have a question for us or did you. Were you just sharing?

Good to share, good to share. Nothing wrong with.

We love sharing. We love, we love hearing about people's Renault.

So tell us, my question was choosing the agent. Like I've got three agents and you know, like my gut's saying don't go with that one. You know, I had a lady last night, I'm just wondering, is there a.

Question or is there a few things.

That I can ask them to maybe because you know they'll promise you anything and everything.

You know, how do I.

Choose that agent that's going to do the best?

Well, if you happen to go to module 11 and you and you and you look on screen now, you could download this. Selecting a sales agent to template that might help. Hey look, my feeling is always gut. Feel is where you should start. So if there's something that's happening there that you're worried about. For one of those agents, it's probably the same feeling you had with the builder, then listen to your gut and move on. But these are the kind of questions that you should be asking. Things like, well, I will be reading them now and asking those questions. Yeah, Obviously you want to know that they've got a database of people. You want to know how much they're going to charge you. You want to know about the marketing, you want to know about the experience, you want to see the testimonials. You want to get a feel for the fact that they understand this market and they've sold in it before. So. You're really trying to gauge that when you're engaging the agent. Having said that, I've only ever sold one property, so I'm not an expert in selling.

We start with. The first one is getting agents that sell a lot of that type of stock. So when we started, when we went into townhouses, we looked at who was selling all the townhouses in the Eastern, in, you know, Campbell and Boroondara and Canterbury. So we wanted to know who was selling the most townhouses. So that gave us our initial shortlist and then we went down from there and basically did most of the stuff on that checklist. I want to know that. And I don't mind dropping in to visit them when they're doing another open and asking them some of the questions that are on that checklist, like, do you think the vendor's a bit unrealistic here? Or, you know, stuff like that and just see if they'll talk out of turn.

Yeah.

About the. About the vendor.

The same thing to you.

Yeah, because they, they would do the same thing to you. And just some of those kind of questions around that, you need to know that they're going to be a good negotiator on your behalf. So often the ones that are the agents that you buy off aren't necessarily the best agents to sell with just because some guys are really good at negotiating and some aren't so much. So you get the. The slime balls that tell lies and all that kind of stuff. You don't want that guy, but you also don't want the guy that tells you too much truth. Yeah, it's like truth serum and he just spills the beans on everything. But you want the guy that can negotiate hard but do it in. In, I guess, good humor or good faith and not alienate the. The, you know, the other party.

And what I really like about these Questions here, Lorraine, that we've got written down. What would you say to the agent? And this kind of allows you to coach them on the script as well. Once you actually have engaged them. You know, what would you say to a buyer when they're looking through my property that says, why is the vendor selling and you know, where are they moving to and do you think it's overpriced? And would they accept an offer today? What would it be? Because they're going to make it up if you don't tell them what to say. So, you know, it's a really simple little checklist, but if you're talking to three or four people, this is the center. Like all of our checklists. Just be something that's supposed to save you some time. Absolutely.

That's fantastic. I really love that.

Yeah, no, I do.

I like it.

Yeah, it's good. It's handy and it's good to do. Just uniform having one agent after the other and I asking them the same questions because you start to get a. Yeah. A good feel for them.

I feel y. But it's been terrific. It's such a great journey and it looks so different.

Awesome.

I'm going to post some great photos soon.

Oh, good, good, good, good. Well, we might even jump. Jump on Skype and interview you. We're. We're tracking down something.

You tell us. Sweet. You don't have to reveal your deck spot if you. If you don't want. We can. Can you remind us where you are again, Lorraine?

Newcastle.

Newcastle.

I'm on the central.

Yeah, the house.

Houses up in Newcastle.

Yep. Okay. Yep.

Yeah, Thornton. Newcastle.

Well, we should. Hopefully we can get a workshop up in Sydney soon. There's enough demand and we'll pop up to Newcastle and say hello.

Yeah, exactly.

Or we could just go to Newcastle.

I think I saw on the Facebook page we had. Oh, keep using your mouse going. Why is that mouse not working? I think we had how many people in Newcastle. Oh, let's have a quick little look. I'm loving these. Pam's putting some great before and afters up. So, so many. There's so many good before and afters going up on here at the moment. So let's just have. Did you just pass it? No, I think I've pinned it to the top.

Oh, good stuff.

Here we go. So Newcastle, Newcastle has got three.

I'll add me. And me.

And me.

We can't add you.

Oh, Geelong. Geelong's popped up as well.

Do you download the checklist? Run over to the Facebook page. And hit plus one for new customers. Yeah.

And I think if I go over to the. The club. I asked the club what they were after as well and they. Where are they? There. There's me having a bit of a chat. We had no one in Newcastle there. Can't even stack it. Get in there and vote guys, because we've got three. Three coming up and we're gonna. We're gonna select on this.

So.

Yeah, all good. I'm gonna hand this back over to you very much, guys. All the best.

Thank you.

Bye bye.

All right, I'll just.

Ravi's. I've handed the screen back to you.

Oh good.

Oh, deann. Oh, I just saw her name pop over here on the Facebook page with her pictures.

Yeah, let's try it again. Danny there.

Hi guys. How are you going?

Good.

Fabulous. Well, professional microphone going on there.

Very good sound.

How can we help? You've been busy.

Me? Yes, I have actually.

I got so engrossed.

What? What the is it?

Lorraine was saying that I've completely forgotten what I was going to speak to you about. But that's okay, make it up. Let's just have a chat, shall we?

Let's just have to in line with.

What she was saying.

So some of you might know I'm in my principal place of residence but I'm doing it up to sell on a small budget.

Right.

So I didn't know this stuff when I bought it and. Okay, that's fine.

Let's make the most of it.

I will make a profit now even if the market says no. But what I did on the weekend is I started looking around who sells the most in this area. And unfortunately in this area it's really hard to get a typical home because it's a little bit arty, sort of arty professionals. So I went to a couple of home open to the top seller. Yep. Yeah. Nah, not gonna happen.

Really? Tell us. Bad feeling.

Bad feeling. If you can't get up and smile and say hi when I come in that house, then yeah.

And that's how they're gonna be treating your potential buyers.

Absolutely. Arrogance just came out of every pore and I just thought no, no, no, no, no, no, it's not gonna happen, love. And so that's that one gone. But I had asked him and he. I did introduce myself and say, look, I rang you a little while ago to ask what would be the best bang for buck for renovations in this area. What do you see the demographics as? I've already done my own research as well. Even Then knowing that I needed a real estate agent, he still didn't step.

Up to it really.

I just thought, how are you the top seller? I don't know. And I went to another one of his, his home.

He might be. Did you have a look at what type of stock he was selling?

Because sometimes it's that crossfit again of types of homes. I think you can get a little bungalow here. If it's a cute arty home, it goes for a lot. And then down the road there's a $6 million house on the corner. Amazing. So it's so varied in the sub. It's not funny. It is a beautiful suburb. I may even buy in it again. But yeah, so that's interesting that side of it. But then again the other lady who came out to my home and brought me cookies and all the rest, knowing that I wasn't selling yet, just to give me an idea, completely undervalued it completely. And I'm like, okay, this is, this is really weird. And they're the other agency that sells.

So there's two agencies in the area.

There's a, there's a lot of, well, there's a few more, but it's not a high selling area. You don't, you know, maybe 40 houses.

A year.

Yeah, that can be a tactic too of, you know, there's some people that buy the listing that go in and tell you oh yeah, you're going to get and you know, look, we're all guilty of this as homeowners we tend to think our house is probably a little bit more than it's worth sometimes. So they'll come in and play to that and they say, yeah, good day, I reckon we'll get this. And then the whole campaign spent lowering your expectations from that point forward. And then other people, maybe the lady with the cookies comes in and starts lower and then gets a great result for you on the day kind of thing.

Maybe. But I do have a look at.

Their past sales as well. I'm a bit of a researcher so I do look at all their past sales and look, my brother in law, I helped him do that sell my place where you do it yourself and they were really successful.

Okay, so you considering doing that selling it yourself at the moment?

I will consider at the end, but only if I do it really professionally. Everything from the flyers to dressing up on the day to everything, staging everything.

Tell me this, the lady who with the cookies, did she have any comparables to back up her estimate?

She did bring comparables, but they were comparables in that there are still bad parts in our suburb up near the highway, things like that. She used three bedrooms. I've got four bedrooms, two bathrooms and a studio. So they weren't like for like as far as I was concerned. So that's interesting. And she kept saying the market's fallen. The market's fallen, but it actually hasn't fallen in our area. It hasn't gone up a lot.03 or maybe 2%, but it hasn't fallen.

And same number of sales is the rate of sales.

I'll have to have a look at that. So my plan is to just when I get some funding to do the renovations and my samples for my curtains just came today, so that's good. So I order them, the samples first and you know, one standard curtain, $70 and the fabric's beautiful. Great. So that's pretty good for Perth and I'll just keep on doing my lists.

Yep.

Now I remember my question.

I thought you were here to play some moves against the clock.

Yeah, you might even make her do it.

Anyhow, so my question is. So in Perth there isn't. That company doesn't go in Perth, go to Perth. That kitchen company.

Good kitchens and bathrooms.

Yeah. And you know what? Ikea, probably. I've asked and looked around and they stack up over here. They're 3% tax. My question was I've got the investment unit down in Perth and when I looked it up on the real estate site, you know how they give that guesstimate? Sort of. This is the value of was valued so much lower than what my neighbor sold his for. Identical place, but I've got a larger yard. He actually likes my renovation better than his renovation.

Yeah.

And they've got the price about 30,000 less than what he sold it for.

And when you checked it out on the website, was it close to his sale date? Could they miss that as a comparable?

It wasn't within the three months, but it would be within a year.

Okay. All right.

And the thing is, it's right next door. It was a unit right next door. And all the real estate agents said, you know, my unit being the first one and the bigger yard would be worth more, so should I.

So the thing, the thing you need to realize also, and it happens when you do Residex NRP data valuations, is that they're basing them on what you purchased it for. So they have that data and they're basing it on recent sales. So if you've actually also renovated since you purchased, they don't know that.

That.

Estimate doesn't include the renovation and the value of added through the renovation. So what they're doing is they're saying, let's say, say, you know, John next door bought for 300 and has sold for 450 over a 20 year period. So they're going to take that percentage of growth and apply it to you who bought six years ago at 350 and that's how they're going to estimate it. So John's comparable is important, but it's not seen as it's kind of used as the valuers would definitely use it as a measure to value the comparable sales, as would the real estate agents. But these online, all they have is the numbers. So they're taking the original purchase price of the neighbouring property, what it sold for, using that growth to apply to yours. Now the fact that the neighbour has done some renovations means that that works in some growth and some renovations as well. But they don't know that you've done those renovations. So just be careful when you're looking at those numbers online and what the estimates are because. Because they can really over inflate or under inflate, but the reality is that they're not. Until you actually have someone having a look at the property, you don't really know.

Yeah, yeah, because the tenants are interested in buying it, that's all.

Oh, good, excellent. Well, hopefully they're better agents rather than the ones where you. Your own home. But get some agents through and start looking at the that. Looking at what they might sell it for. What are your thoughts on this, John? Having the agency that manages the rental property actually look at the sale. There's sometimes a conflict there.

Yeah, I've always started with a blank slate. I just like to.

Oh, you manage it, do you?

Yep.

Oh, okay. All right. Well, obviously you have no conflict. It's all good.

But I think generally speaking, I think it probably could work and I mean certainly it had lots of convenience to it. I tend to just start with a blank slate and go right, who's the best agent for that house in the process that I described before? So if they were in the running for it and I'd view them as any other candidate and select them that way.

Great, I hope that helps. Okay.

And thanks guys for the course. It was great.

Oh, good, good. Hey, you don't want to play suburbs against the clock, do you? Now that we have you here? Sure.

There's the other lovely lady that would.

Love to do that. I think I've got three I've got three questions. Two of them are really mean. It was just that we were saying we thought, wouldn't it be nice if someone jumped on from Perth? Because we can't actually substantiate.

Karen said there's a caveat. I don't know how to play.

Karen says. Oh, we can help you with.

Okay, let's. We'll. We'll get one in before we go. All right, I reckon.

Thanks a lot.

Thanks, Dan.

Okay, bye. Bye. Thanks, guys. Let us know how you go.

Okay, hold on. Okay, that one. Okay.

Karen, Sarah's from Perth. There we go.

All right, Karen, so let's see if we can unmute your line. Hang on one second.

So we're gonna tell Karen, where's your list?

Because I've forgotten what we decided.

Okay. Oh, I've got some toughies here, Karen. This is a bit of fun. Okay. And if you've listened to our podcast, you'll know that we do John Blackman from. Hey. Hey, it's Saturday.

Y.

You do his voiceover. I can't.

Well, I don't need to. I can just do this. Suburbs against the Clock.

Well, what was that?

Did. Didn't you hear that? Oh, everyone else did.

Oh.

Oh, good.

Well, suburbs against the clock.

Yep. Okay. So, Karen, where are you?

Let's go here. So basically what we're trying to do, and you're up for a price, the annual membership to your property success club. Hey, Karen, we can hear you. How are you? Someone in washing up in the background there.

Oh, is there?

No, you're all good.

No, it's fine. So what. What we're doing Here, you have 20 seconds to answer for 10 suburbs names under a certain criteria. So in the past, we've done.

Well, there's one coming up where we said, name some 10 suburbs in 20 seconds that are above sea level.

And one was on the train line.

Yeah.

One was with lakes. That was really.

How many train stations?

Because I think it was a guy from Darwin who got it.

Suburbs with freeway access, that kind of thing. So you just got to come up with 10 seconds in 20. Sorry? 10 seconds. 10 suburbs in 20 seconds to win. Sound good?

Oh, my goodness. I'll try. Okay, we're going to give you an easy one just because you put your hand up, showing a bit of guts, and you're going to stand up for it. So, Karen, are you ready to play Suburbs against the Clock?

That's it.

I'm pumped.

Okay, now tell me, what. What city are you playing for? Oh, Sydney. Okay.

Oh, good, good.

Okay, have I got a question for you. Perfect for Sydney. All right, so can you name 10 Sydney suburbs with roundabouts?

Castle hill, balkan hills, blacktown, rouse hill.

5 perry hills, 10 chickens.

See, how easy was that? I bet you people are kicking themselves now. Karen, well done, well done. Congratulations. You have an annual subscription to your Property Success club, which we'll get your details and give you access to. But good on you for fronting up and having a go.

Good on you, Karen.

Thank you.

And if you had seen some of the other questions. I have. Well, well, does anyone else want to have a go? Come on. I've got. I've got a bit. Few more tougher ones this time, but it's gonna be a bit of fun. Thanks a lot, Karen. We'll get that out to you. Thanks.

G'.

Day.

All right, anyone else like to play Suburbs against the Clock?

Oh, look at this. They're all so shy tonight. There's so many people here.

That's a really good question.

Okay, for those who are listening to this recorded, send us an email if you're interested in playing.

Sarah's going to. Good on you, Sarah.

Is she playing for Perth?

Let's see. All right, Sarah.

Oh, a little bit harder one this time. Sarah didn't have a microphone.

Oh, hello, Sarah.

Hello. Yeah, I guess I'm here now.

Oh, well done.

And now are you playing for Perth, Sarah? Yes, please. Since I've only been in Australia for a couple of years, so I don't know an awful lot about anywhere but Perth.

Okay, well, I'm just looking down our list of questions here and given that little bit of information, we might ask the third one rather than the first one. Jane.

Okay.

We're particularly cruel with the first one.

I thought the first one was nice.

Okay, so Sarah, you familiar with the rules 2010 suburbs in 20 seconds.

Okay, and Karen, who are you playing for again?

Perth.

Okay. Okay, now ready?

Okay, so we're going to put on.

The timer and you have to name.

All right? So coming up, 10. Where do we have 10 Perth suburbs in 20 seconds. And off we go.

Let's start with two words in them.

Will you let me ask the question?

Ready?

Go.

We're gonna have to.

I was wondering how he said again, just 10 suburbs in Perth. Go for it. Okay, do it again, John.

No, no, we have to, we have to. She's had like 40 seconds now.

No, no, she's so confused and she's from overseas.

Okay, can you name.

So what's the question?

Okay, I'll give it to you now. Can you name 10 Perth suburbs with two words in the title?

Peppermint Grove, Wembley Downs, North Perth, South Perth East.

Keep going.

South Fremantle, Eastmanpur.

I think that's 10. I think that's 10. I've run out of fingers.

Good job and well done to that voice in the background too. I didn't actually think of the East, west, north, south, but that was fabulous. That was lateral thinking all over.

Very easy answer.

You are going to have access to your property Success club, the annual membership and we'll organize that for you too. Sarah. Well done. And I'm sure you'll be able to use use it to get to know other suburbs in other states as well.

Thanks, Sarah.

Thanks for being a good sport and putting your hand up. Well, there you go guys. That's how easy it can be. And I hope we answered your question earlier about Ripe House and Residex and the Ripe House and UPY data in comparison.

Oh, good. So no more hands up, Jane. I think suburbs against the clocks. Get everyone I know.

Well, at least they're not leaving. Right? But so now. So as I said, we interviewed Kim Kiyosaki, Rich Dad, Poor Dad, Fame. Amazing interview yesterday. It's going to go live in two weeks time. So it will be live before we speak to you next month. Last Thursday of the month, 8pm but not sure if daylight saving is finished or not then. But you know guys, we would love you to share it as far and wide as you can because we really want to. It's a really fabulous message and it's a great interview and a lot of messaging around empowerment for families and women and financial security and you know, so I just, when you see it, rate and review that podcast for us. But yeah, share it out with your friends and let people know about it because pretty exciting and we are. Well, I'm tracking down some new exciting people too to put on the podcast.

So let us know who you'd like to hear from.

Yeah, we're trying to track down Sarah Beanie and Mr. Kevin McLeod. So anyone knows them personally, let us know. Funnily enough, after I said I was talking to Kim Kiyosaki, someone on my Facebook page went, oh, she's a great mate of mine and this lady lives just up the road, Newcastle, Maine. So there you go. You never know who knows whom. Anyhow guys, that's the end for tonight. Once again, thank you so very, very much and I hope that we have helped you with the analysis. I know we went pretty deep into the question from Chrisia, but it's a really good quality question that gives people an idea of scope and especially when you're in that. That period of cooling off. We did the same thing for Gabriel, you know, early last year. And, yeah, he's just back to winner. Walked away from that deal. Back to winner. And we'll be sharing his story with you soon, too. And once again, thank you so much for all your support. We look forward to speaking to you soon. And until next month, here is to your property success. So, yeah.