Your Property Success Mentor July 26-07-2018

Everyone. And it is Jane and John. And welcome to our monthly Q and A mentor session. And this is July. Can you believe it? We are halfway through the year. And my gosh, we have done so much and been doing so many different things, haven't we, John?

It's been a crazy couple of weeks, actually. We've had staff coming on and all sorts of wonderful, exciting stuff, new webinar planning.

So.

So, yep. Gone fast, too. This year's just gone so fast.

Absolutely. Well, you have the normal things that you have to read out. Shall I leave that with you?

Yeah, hang on just a minute and let me pull up the right thing. I was not doing my duties properly and didn't have it ready. But basically all the information in today's call is based on our personal opinions and experience and not intended to be specific to your circumstances. We're not financial planners, lawyers or accountants and not liable for any loss, damage or misunderstanding caused by any of the information provided or inferred. And with all that out of the way, I think we can get going.

Jane, fantastic. Well, we have definitely had, as John says, an amazing, amazing month this month, and I hope you have as well. Now, just to remind you, these calls are for the members of your property success club. And you may have come to us as being a direct member of your property Success club and having access to the courses and the teachings that we have there. Maybe you made the donation to the people Lepsy foundation. And John, I thought it's probably a good idea. We could give a bit of an update on how many people have made a donation and how much we're up to, because we did set a goal about $10,000. Now. People are entering the your property Success club now for as little as $10 forever. Some people $10 a month, some people doing $20 a month, some people $50 a month. It used to be $97 a month. Some people paying once off fee of $500, some are once off fee of $100. Whatever you can contribute. You know, we don't want to limit anyone to being able to join the club. We feel really patiently.

What I loved about that is when we decided that, you know, what price would we set it? Obviously we decided that we were going to support a charity which was the Pippilepsy Foundation. Really great story which you can read all about on the your property success page. But we said, what would we make it? And so we thought we'd give people the options. You can do $10 or you can do $50 or $150. And you can choose to do that as a one off payment or you can do it as a repetitive payment. And most people, you would think, you know, if you were cynical, that most people would just do a $10 one off payment. But it's not been the case. Lots of people do the reoccurring payments. Lots of people do, you know, 150 bucks. So it's great to see, isn't it?

Oh, absolutely. And I think the thing about that for us is that there's. We know that it's, it's adding value and it's actually helping, helping out a really great cause. And for those of you who haven't read about the cause or don't know much about it, Sarah and Heath Crawford have a young child, Piper, and she required medical assistance when she was 18 months old. She's now just over three and she's had ongoing. I'm just going to share the page with you. May as well just chat in case you. Yep, no, I've got the page here and let me just share my. Oh, I might share this page and move it over so everyone can have a look. But this is little Piper, if you can see her there. Did that share.

I can't see. Yeah, I can still see you.

Okay, let me take that. This is the pipilepsy page here. So, you know, this is about the fact that there was a lot of extra requirements for support that was needed for the hospital. And then when they started going through and having a talk to the medical practitioners there, there were a lot of different support that was needed and a lot of families that were being affected. So they decided to raise $100,000. We wanted to get behind that and really assist them in doing that. And so we're really supporting them. There's families now from around Australia that are working with the foundation and they're supporting. So just having a look at this. So far we've had 160 donations and $4,481 has been raised. So really proud of this. Even if you are a member of our Ultimate Guide to Renovation or location masterclass or, you know, you're just a member of the community and you find us or you think someone would be interested, we'd love for you to support this because we believe in it so much. Obviously the people, people get access to the.

These guys are already in club. But yeah, share it with your friends.

Facebook page and everything. So these calls monthly if you're new, for our location masterclass students. Our ultimate guide to Renovation Students, therefore the diamond and the gold. Investors Choice mortgage clients as well. So all of that out of the way. I see we have a couple of people sitting here in the lobby. Kiran and Sang have got questions. John. But before we get to that, tell me how has the month been for you and what's been happening?

Well, I was, I'll tell you what happened to me this month. I was left completely on my own while someone wandered around the world kind of, you know, doing some kind of head trip stuff. Now it was good. I wish, I wish I was there actually. It was. Sounded amazing, but I'll let you go into that. But so it's been interesting. So I was manning the fort, but we've also had a few new staff members come on in the last couple of weeks, which is really exciting. Diego and Arlene and also Tina. You might have seen we put a post out a couple of weeks ago in Facebook, was probably going on a month or so ago now and let people know that we were hiring. Well, you know, hopefully we'll be hiring again in the future sometime in a year. A year or less maybe. But yeah, so we've got new people on board. So it's a new happy family in the office and lots of activity. So it's great. Lots of work too.

I shouldn't say I leave you alone. Hey, that's right.

Leave me alone for five minutes. It's been good.

Well, we've been doing pretty much all of this by ourselves for so many, what, five years now. So it's nice to have a dedicated team and help support bringing our vision to reality.

Yeah, absolutely. So yeah, hopefully we're the. So what's that is going to translate into for. I guess everybody on the call is we're looking at doing just more stuff really. We, we actually had a, a staff member as some of you know, have been around for ages. His name is Ray. He was with us in 2016. Unfortunately, he. He passed away. But when? With a kind of a freak accident when he went in and had an anaphylactic reaction to an anesthetic and passed away. But so that was tragic and we'd kind of been doing it by ourselves again since then for basically the last two years or year and a half. Two years and but back then in 2016 with Ray woods, we're doing a lot of content. We're doing webinars nearly, you know, at least one a month, if not two a month and sharing a lot more content. We'd started the podcast and we're doing the Podcast, we still had a newsletter. So some of those things have dropped off over time over the last couple of years. And so we're bringing all those things back into play and doing more regular content to the club, more regular content to the Facebook page and more webinars and you know, podcast, newsletter and all these things are on the cards too.

And I think it's a, it's a really good point. You know, we, we don't have those million dollar marketing machines that a lot of property educators do. And so we really, really committed to be able to add value and give really good advice so you can make the best decisions about where to buy, how to buy, how to renovate and how to grow your personal wealth to get you to your long term goals. And because of that, you know, I think what frustrates me continually when I do, you know, deal reviews or strategy reviews for the mortgage investors choice mortgage clients is that we're continually seeing people who have been exploited or have been influenced in buying in the wrong areas and their entire portfolios stop. And with the current regulations and changes in lending, that can be the end of the entire investment journey. So we're just trying to get to as many people before they make this decision.

We'd like to reduce the amount of people that say, gee, I wish I knew that before I spent $300,000 and.

Went backwards or $50,000 on mentoring or something. But anyhow, so I guess the long and short of that is that we're committed to, to making a difference to our community and hence why we do these calls and ask you questions and try to add as much value as possible. And it's nice to have a team around us to do that now John.

Sure is, sure is.

Now I'm going to tell you about my month. So I been in, you can see some my husband's pictures behind me. But I have been in Tallinn in Estonia at the Mind Valley University. So for, for those of you who don't know about mindvalley, mindvalley is an online education platform around personal development, et cetera. And they have about 3.6 million students and they have lots of courses going all the time. I do the courses regularly. I'm a curious person, but I'm a constant learner. And one of the things that they basically came up with was the fact that, you know, people are leaving university or school and they don't have the, the knowledge to be a better person to be, you know, know how to health hack their way to live forever and how to be the best person they can be, how they can be better business people and employees by continually learning. And so they've created this university. Every year they take over a city. Last year was the first year they took over Barcelona. 300 people. Application of thought leaders around the world. You have to make an application to attend. This year they did a thousand in eston and talent. And I remember saying to John, in three years time, I'm going to do this. And then about two weeks before the university itself, they sent an email out that said, are you your, your child's flatmate or are you, are you coexisting or are you co creating? And I thought, gosh, that's amazing because they run a child's program at the same time. So emotional intelligence, be a digital global human of the world and how you can contribute to being better. So all of those things were just extraordinary. And I thought, I just have to do this. My husband said, I don't think I want to spend two weeks in Estonia. You go for it. I'll look after the budgies. So he looks after the budgies. In actual fact, you probably see some of his sculptures putting up on my screen behind me. But he, he stayed home and did art. And my son and I took off and we just had the most extraordinary experience. We had, you know, meditation with Sri Sri, who is a meditation guru from India. He has 5 million people turn up to any one of his meditations. So as a small group of people, having exposure to him was just extraordinary. I learned about being a better business coach. And, and I'm. I never want to be the guru from the stage. I definitely want to have a platform for people to share their experiences and assist. And, you know, really reinforced so many of those things for me. And, and how I, I think, you know, there's a story about a little kid who says to his father, you know, can I play with you? Can we play together? And the father's reading the paper and he says, oh, no, not right now. He thinks he's going to make the child occupied. And he pulls out a picture of the globe and he cuts it all up, tears it up and says, put this together. And when you finish that, you know, I'll have a chat to you. And the little kid's back in two minutes. And the father's like, how did you put this together so quickly? And he said, oh, dad. On the back was a picture of a person. And, and then once you get the person right, the world follows. And I think it's a kind of A meaningful message where, you know, when you can do work on yourself and improve yourself and, you know, be able to have and be committed to what we're trying to do with your property, success and helping you get to be to the best person you can be and have. Be financially secure. Then it all comes together. So I signed up, spent two weeks, blew my brain. I wish there were some things I didn't learn, John, because you can't unlearn some of these things.

Oh, tell us about that. Tell us about those then.

Conscious parenting. You know, pretty much we stuffed up our children and. Yeah, so. And unfortunately, my son sat in one of those lectures on conscious parents.

Oh, did he?

So he's coming back going, is it really important? My backpack is not here. It's over here. You're getting all stressed about this, so. And his emotional intelligence is now at a higher level. So I say to him, mom, your tone is telling me you're expecting me to do something that I haven't done, and you're anticipating it. How about we just play it out like, no, you're 10. Don't freak me out.

He had a whole bunch of programs that he was there. So how did he feel about playing home? What was his take on the whole experience?

I think it was just one thing that he took away. And Tallinns is this incredible old city, you know, 91. They still were communists there. You know, the Russians left. So this is their dour. They're sad. No one smiles, no eye contact. But, you know, so my son was in, you know, a child's program. Kids. The kids program. And they had like, the top hypnotherapist come to talk to them about positive thoughts and how to positive talk and how it can affect you. And then they went and learned how to do. Oh, I can't even say it. Is it a core where they jump up on buildings and run around and do things.

Parkour or something? The ones where they.

Yeah, the number one parkour expert in the world. Come teach the kids how to do stuff. So, you know, is this. And Jim Quick, who teaches speed reading and memory retention, gave him some techniques on. On how to remember things. So just incredible diversity. But one of the things he said to me is that you sit in Melbourne and you think it's so important and your life's so important. And what we do is in this little world. He said, but the world is so much bigger and there's so much more we can do and talk to. He's got friends now in South Africa and San Francisco and Scotland that he's talking to. So I think that just exposure at a young age of being.

Most people don't learn that until, you know, they go backpacking in their 20s or something where you actually expose, oh, there's a whole world out here that I didn't even realize was going on.

But yeah, and Mindvalley, like us, is about affordable education. I think it was like for if you were going to do the full month, it was like fifteen hundred dollars to attend the courses and obviously you pay for flights and accommodation and kids who like $600 US so you know, it's incredible, incredible journey. So I can't wait to introduce a lot of the thoughts to you. I've started your Success Club Facebook page if anyone's interested in some of the meditations, some of the business talks, some of the, some of this, some stuff is that really out there? I'm going to tell you but I'm still trying to get my mind around it. But there's some incredible thought leaders out there about how to engage people and how to health hack, for instance. So I'm having cold showers at the moment. It's going to make me live for longer, apparently. John so that's about it. Some other interesting things I've been doing. I attended the Property Expo in Melbourne on the weekend on Saturday. And look, I've been attending these for 20 years in Sydney and Melbourne and you know, as you know, I've spoken on the stage for, you know, for your property success but for Money magazine, for defense housing and you know, same.

One or the different, different one?

These are the same ones and this is it. There are four or five or six great big exhibition rooms that, you know, there's two or three speakers talking at once. There's great, great big stalls and things going on and there was a lot of energy and hype and you know, everything was happening. You had to kind of like get through people to get around and get to the talks. I walked in at lunchtime on Saturday. No one there. There's more people on the stands than there were people attending. And it was this, I guess the, a bit of the climate was to see that the perception about what's happening in the market has taken people away from attending these Property Expos. And let's face it, most people can get a free ticket anyhow. So it's just a cost of time. And they're down to one to two of these exhibition halls, only one speaker talking at a time. And so that I found really interesting and I did. I've lost my notes now. I did have a really great talk. I caught up with Nerida Conspie who's the Real Estate Institute of Australia's head chief economist and she had incredible insights. And I think when we talk about data we know that when you're looking in the back of the magazines, your investment property magazine for instance, they're quoting RP data that RP data had to provide to them three months beforehand and it's still two or three months old. So you're looking at data four, five, six months old. Obviously with our suburbs with the magazine. Yeah. And the suburbs like to software. This is what happens when I rearrange my desk. I don't know where my notes are. But the suburb selector software is. You know we've got SQM research data coming in monthly so we've got the most up to date data. So that's sometimes why the data looks like different in the back of the magazines. And the other thing is that so the REA group is actually looking at live data. So the searches that are done in realestate.com are actually where they're getting the data. So this is really interesting because they're looking at future information. And I know as a mortgage broker I often get people who are three to six months out from purchasing telling me where they're looking and when I do a deal review or strategy review with them or we're talking about suburbs and areas and often they're outside where people are buying right now. So it was interesting with the amount of data that they have, some of the insights that they shared. So for instance the information that they saw was when Hobarts obviously had a bit of a growth period in the last few months. They saw that starting three months ahead of any sales. So people started searching the Hobart before the sales happened. Then the sale happens, six weeks sale period settlement and then that would then get reported to because they've got a.

Couple of different data points that they can look at the just the volume of traffic looking at those listings on their thing. But I wonder did you ask them about their sales, about how accurate they felt their sales were like recorded sales? Because you know how we found out when we were doing the initial research how everyone was scraping the real estate sites for the sales information and there was a big lag like up to really three years before that sales information really got accurate with the value of general stuff.

I didn't ask them about that because I have to say I don't go to those sites to get sale data. And I don't even know where the sale data is actually on real estate. Like once they're off the sale. I haven't, I don't look at the properties, but you're right. No, I didn't ask that question. But what was interesting was that Hobart is actually about to overtake Adelaide and Adelaide will become the lowest price, median price capital city in Australia. So that was kind of interesting. That's how much they've got some interesting stats around the rental information still not being. Not a lot of vacancies etc in Hobart. And I think some of that might be from the fact that we know that there's 2,000 Airbnb properties in Hobart. So that might be obscured kind of information. But what they do get and what I'm going to, I'm going to talk to narrator and try to get her on our podcast or chat to her Facebook Live. But for every one property. Warren Dice in Melbourne at the moment is the most searched suburb in Australia. For every one property that's on there, there's 10,000 views. Yeah. That is just extraordinary. They can also track IP addresses and they're watching where the Asians overseas Asian population are looking to purchase. And it's Carlton in Melbourne and St Lucia in Brisbane, the two university areas. So it's still education.

Yeah.

So, yeah, I'm really, I'm fascinated with this. She gave us a group a list of, you know, the 10 top searches.

It's much faster, isn't it? Because they can you. It's immediate demand that they're looking at rather than waiting for sales. And the argument around how, how accurate the recording of those sales is.

Yeah, yeah.

What, what we learned when we were doing it, it was the, the reporting of sales varies from platform to platform and it causes a problem and it's reasonably accurate. But it's not until you get out to like two and three years when the valuer general and all the valuer generals publish at different timings and all of this kind of stuff. So the sales data was different from provider to provider, but they're actually looking at real time demand from people searching in those suburbs and.

Exactly.

And how many listings are on search engine they used to have. Remember the, when we first started the Ultimate Guide, they had it on the website. On the front of the website.

Yeah.

And that disappeared. Real estate.

It was one of the search criteria that we had in our things that you needed to look at, which was what the, the. It was almost like the demand score that we've seen you know, some other providers provide since then, but, you know, it was really, I guess some of the other interesting things, keyword searches. So this is usually homeowners. 70% of people buy properties are homeowners. Obviously the number one keyword search for a homeowner guess. Actually everyone have a guess. If you, if you're watching there and see how we've got a few people there watching, have a guess. Hey, sir, tell us what you think. The number one search for a property criteria would be things like. No. Anyone have any ideas? Any ideas? John, have you got any thoughts?

Are you allowed to go bedroom?

No.

Are we thinking, okay, I'm gonna put.

You out, I'm gonna. None of these quick. None of these answers are right. It is swimming pool.

Swimming pool.

Okay, that's a 20 flats. But for renters, the number one search criteria for renters. And here's an opportunity here for people, pets. So pets allowed. So that's pretty interesting. And I think, I think that gives us an opportunity for us to sit back and go, you know, as if we can put a pet bond in place. Does that open us up to a whole different rental market as well? Especially if you're having some issues with your rents at the moment.

The one we used to use when we're doing the developments was council. We'd put because it be a reference to council approved or DA approved. Yeah.

So at the moment, the rental demands, when they're looking at demands at the moment, Sydney on their website, Sydney's 22% less than where it was this time last year. Melbourne only 6%, Tasmania 38% up, Western Australia 6% up, Queensland 6% up and Northern Territory 5% up. ACT 16% up and South Australia 3% up. So there's definitely a lot of attention around Tassie. It looks like Melbourne people are looking at Tassie. Tassie people are looking at Gold coast and Sydney people are looking at the Gold coast so they can track everything. So basically they just need to know the question to ask and they can find the information. I'll give you a heads up. Top 10 searched suburbs in Australia, we have Hawthorne, Warrandyte park, orchids, Albert Park, Red Hill, which is Ballarat, Fitzroy North, Eltham, Collingwood, St Kilda and Toorak in Victoria. In Victoria, yeah. When we're looking at the most in demand across Australia, Warrandytes park, orchids again, Victoria, Red Hill, Victoria, Crafters in South Australia, but at Battery Point in Tasmania, Richmond in Tasmania, the Basin in Victoria, North Hobart, Tasmania, Hobart, Tasmania and Albert Park, Victoria. Well, There you go. That's my sharings for the week. That's where the interest is. Victoria and Tassie.

There you go. That's very interesting.

And I did note that Daniel Andrews on Saturday made the announcement that the train line to the airport in Melbourne is going ahead and it's going to go through sunshine, which is going to open up the Geelong and Ballarat fast train lines. So infrastructure is one of the leading indicators as well, population, infrastructure. So some really interesting information there, John.

Yeah, that's awesome. Let's get her on the. Let's get her on the podcast. I want to know more. There's so many more questions.

As a team, we're going to have to come up with the questions to ask, so we're going to do some research.

One of those suburbs that she named in Melbourne, the. The Basin. Just something. Why it's like a little, tiny little town at the edge of the Dandenongs kind of thing. Seems so random. But anyway, there must be reason behind it.

Well, let's have a chat. Oh, sang. He just jumped off. Where did he go? He's been waiting.

I've got some. Some ones I prepared earlier here, Jane, if you want to start with those.

I've got Kieran here. How about we just put Kieran up? We'll have a chat to. Oh, he's saying he's back again. I know. Saying. Kieran, hang tight. And Matthew, we can't see you on the. On your. Your webcam. We might be able to talk to you. We'll check. Hey, Singh, how you going? Good. You've got a question for us?

Just tilt. Just tilt your camera down there a little bit, Singh. We're getting a lot of roof. There we go. Perfect. Thank you.

Yes, I got the questions already, so I'll go through again or.

Yeah, please, if you could.

Okay. Recently we bought a property through sms. Smsf. So. And then we plan to convert that to dental practice. So my wife is a dentist. So my financial planner told me that I need the proper agreement, lease agreement with the dental company and the smsf. So I approached agent and then they said they can do the leasing agreement with me, but the fee is still very high. Not high high, but just a normal 5% and then $200 letting fees. I feel funny because I'm the tenant, I'm the landlord, but I still get charged that much. Is that normal?

Yeah, it's a good question saying commercial leases are pretty much outside of my domain. But if we're talking about residential leases and what.

Yeah, it's residential though.

Yeah, exactly. So if they're actually quoting as residential, 5% is actually quite good. What we've seen. What state are you in?

Victoria. Victoria.

So what we're seeing in like in Brisbane is that rental costs are higher up there. So 6.5 to 8% is a rental management fee. Not unexpected. I know in Sydney I'm paying about 5% for a rental management fee. Six and a half and seven is kind of expected there. And in Melbourne I'm paying 5% as well, which I really negotiated to get. So 5% is not unusual. Often they do charge one to two weeks fee rent as the letting fee. So the fact that you're being charged that $200 is it to Jesse? $200 letting fee?

That's right, $200.

It's quite reasonable. I would actually, just because you are the tenant and you are the landlord, I would ask your financial planner. I can understand the importance of having a prepared legal lease agreement with bond being in place. But as for actual management, does it have to be arm's length? What I would ask and because I think that that possibly could be, you know, a saving for you so you don't have to pay the management fee. It might just be that you need the agreement. But find out because with the SMSs you don't want to stuff that up. But the other thing, we've been talking to a number of disruptive property management platforms that are actually offering around a 3.9% management fee and they can actually manage all of your properties anywhere in Australia, basically in capital cities at this stage, but they expand to all capital cities but east coast at the moment for around 3.9%. And the biggest cost for rental managers is their offices. So if they take the office out, they've actually got the opportunity to bring. So I'll put in a link a bit later but Yabonza is one of the groups that we're working with and we're, you know, we're really, really impressed with what they're bringing to the market. They've only just launched or they're about to launch as well, so I'll give you the, the right link to them. But yeah, good question because it's a self managed super fund, you know, make sure, just be very clear. But yes, I definitely follow the letter of the law with it but what you're being asked to pay is not unusual and it's actually quite good.

Yep.

Okay. All right.

Can I ask you a question?

Thank you Jane.

Because that's a really Interesting strategy. Talk us through how you how that come about. Obviously buying a property and then renting it back to yourself as a business. How did that come about and what was the, I guess the research that went into it and what are the big benefits of doing that for you?

First is we were looking at commercial building and the thing is the dental setup, you cost a lot to set it up. So if we set it up it cost about 200 to 400 even to put into a premises. So we hesitate to do that because it's someone else premises, someone else property. So that's why we're looking into smsf. I was looking into it and then I discovered that we can buy it. The small business can buy it and then rent it back to yourself. So that's why I approached it that way. So at the end we found one which is close to our house, which we're lucky. We think we buy the ugliest house in the suburb. So we just the right things for us to do. That's why we went for it.

Great. Fantastic. And was there ever a choice between buying it outright with a traditional loan versus self managed super or was it always going to be self managed super?

We were thinking outside but the thing is now the lending is so hot we can't get it from outside. So we have to go to SMSF because we asked Lisa as well some other broker our lending because we already bought have other property as well. So lending criteria getting stricter then it's just impossible at the moment. So but SMSF is separate so that's why it's easier. So we just have to contribute a bit more.

Yeah and it's a really interesting point saying there's two things there that are interesting for people. So obviously you spoke to Lisa for investors choice around the borrowing capacity. And the thing is often when you have, I'm going to say got to the maximum borrowing capacity that you have personally and you can't borrow anymore if you, you can actually have your borrowing capacity in a self managed super fund assessed without any of your personal debt. So what they're looking at is the money that comes in. So they want to see your regular money coming in, your 10% from your employer coming in. And then they also want to see the fact that and there's a number of changes with the lending practices that have changed but you know, 70% for an interest only loan. Some lenders are doing 80% interest only but mainly 80% lending with a principal and interest loan. But they want you to retain about 10% of your self managed super fund funds as cash. So a bit of a buffer. But if you're buying like a $500,000 property and you have $100,000 in your self managed super fund and maybe 30, 40 to do the stamp to you, et cetera, and maybe 30, 40 for the buffer, you've got $200,000 in there. You could buy that $500,000 property. The rent and your additional income that's coming in from your contributions that you're making is how the lenders are assessing that debt. They're not looking at the fact personally you've got credit cards or you've got other lendings. It is a really good strategy for those who've kind of reached that peak. And we're seeing more and more self managed super funds starting up. And just the fact you can't, what Sang has done with his wife's business is not normal in the sense that you can't just buy a house and move your family in. You have to have a business and it has to be like, you know, you are running an operation from there. So you can't, it can't be personally beneficial to you. Yeah. But no, it's great, it's fabulous. And look, interest rates are a little bit more expensive and all those extra things as well. And you have to have bear trusts and the trustees and all those things set up. But where there's a will, there's a way.

Yeah, yeah, we like to control the property. So that's the way.

That's clever. Well, thank you for your question. I really appreciate you joining us.

Thank you, Jane. Thank you, John.

See ya. See ya.

Now John, we've got Kieran who's been waiting here as well and we're just.

Before we jump, Jane, if I could just ask you about that. Most people, when they think of playing a longer term right, you only get access to it at a certain point down the track. So that kind of marries in well with leasing it to your own business as well.

Yeah. And I guess from a self managed super fund, it's definitely about location, it's definitely about long term growth. You know, there's so many restrictions on what you can do in borrowing to renovate and making changes and all of those kind of things. So you have to be very clear about the strategy. But it is very much a long term buy and hold. Not to say you can't renovate the property. If you've got funds in your fund, do that, you can do it. But it's definitely a long Term strategy and you need to be wary of that. And you know, if you are a business owner, moving your property in there and having all the benefits associated with being able to sell it later with the cash benefits when you're at retirement or whatever is a great way to go. Now. Kieran, welcome. How are you? Hopefully he can hear us. Hey Kieran, can you hear us?

We can see you.

We can see you. I'm going to send him a chat. Hey Kieran, we can see you. Can you hear us? Okay.

I can read you a question. Come back to me.

Let me just put Karen down and we can. Yeah, and I've got. I did have Matthew here as well. Should I just see if Matthews now? I don't have a. I don't. He might be able to talk to us, but I don't see that he's got a camera. So let's just see if he's got a question that he wanted to ask and is feeling anonymous at the time. Hi Matthew, are you there? Hello, Matthew. Nope. Maybe he's just joined us on the link to join us. Okay, John, ask the question. Go.

Yes, Question is from Karen. She says. Hi, Jane. Is the dot map for investors who are buying and holding as it shows a 10 year growth period is the first part to that. And why do you use 10 year growth rather than one or three years? There's a couple of follow up questions there but let's. Why don't we tackle those ones first?

Okay, so the first question is. Yeah, okay, okay, so. And I guess it kind of does link into the next question, Karen, the dot map itself. And for those of you who haven't done the dot map, why not so much fun. But the dot map itself, basically what we do is we take the 10 year capital growth data from an entire city and we then apply that to a map. So we get some dots, we create the legend. What you might have seen just recently. And I will share my screen on this. So. But what you might have seen just recently is that we've got. I'm just going to put my Facebook screen up here in the your property Success club. You can actually go to units over here on the left hand side. And if you're having trouble or have questions around dot maps, what I'm doing is I'm actually applying them under a unit. So there's all these different units where people have actually asked questions about dot maps. So if you have any particular questions, etc. Go in here and you might be able to find the answers quite quickly. Or obviously you can do the search as well. So just a little something or other that we've added in recently. So something a little bit different. So just on that. So what we do is we take the 10 year capital growth and the reason we do that is we just don't want to have that variability. So what we're looking at there is we're looking at having the opportunity to look at almost like a calibrated data set. So not the great price rises that we've had in the last one to three years or dives as we've had in Perth, for instance. We're looking over 10 years. If we had 20 year data, I'd be using 20 year data. So what I'm trying to do, can.

You just explain the difference between a cumulative and averaged. So it's 12 year month, 12 year annualized growth. Because that's confusing for people.

Yeah, yeah. And I think the most confusing thing is sometimes when you look in the back of say your investment property magazine, they're talking about one or three or five year growth. They might say 40% over three years. They're actually doing a cumulative, they're adding up, you know, it was let's say 10% 1 year and 15% another year and you know, 10% another year. So they're actually adding up, you know that to come up with a cumulative amount. But when we're actually looking at the average annual growth. So when you're looking in the back of your investment property magazine, it will not say 10 year growth for whatever reason. They call it average annual growth. It is the number over 10 years. So take that number and use that and create your legend in it. And if you have a look at one of these units in the Dot Mac and your Property success club post, we talk about why do we use 2% increments and when you might actually change the legend as well. So I've got a few little tips in there, little video tips to help you out with that. But the really interesting thing about that is that when we look at the information, the 10 year growth, it kind of, it gets out of the blips. So it kind of customizes the information so you can really have a look at the ripple effect. And with the ripple effect, what we're doing is we're actually looking at where there's pricing pressure and there's growth pressure. So you know, areas from usually the cbd, what we see is people want to live close to where they work and as they can, can't afford these suburbs they go to the next suburbs. And as they can't afford these suburbs, they go to the next suburbs. And we do see some interesting things as well. We see, you know, this natural ripple effect, but then we see a huge infrastructure, maybe train line or we might see a big, you know, motorway. And so you've almost got like spokes on the wheels sometimes, if you think of a wagon wheel where those major roads actually, along the areas of those roads, you actually see some growth as well. And then you've got this holy grail where you've got some of these suburbs coming out here and you've got these. And you see this in Brisbane a lot, these major arterial roads and then these little pockets of suburbs in here that haven't had the growth. So these are really the hotspots. And you might see the 2% increment. So we say take a 2% increment. So one suburb might have had 3% growth and one suburb has had 5% growth. So we're looking at that type of increment change. Now, the legends don't always work out as we teach in the course, because markets are different. So we've had some people recently do the Perth map and post them, and everything's blue, which means it's less than 1%. So sometimes you actually have to maybe do half percentile legends or move it up or move it down. You know, Sydney obviously has had some really great growth, but it really gives you an idea of the ripple effect. And that's your first lot of suburbs that we would then take. And then you might buy some expert reports or get some extra suburbs that come through from the magazines or media that you're reading or, you know, narrators report on what's happening with rea, for instance. And then you come up with your suburbs and then what we do is basically, you know, we would jump them into the. So what I would do is put them straight into the Location Masterclass or the Ultimate Guide of Renovation into that suburb selector software. And once we do that, so this allows you to go through and say, well, first of all, let's just put my buying criteria on there. What can I actually afford? So let me just share this with you. So you might go, okay, so I'm in Melbourne and I can afford $750,000, for instance. I'm very much happy to go below that price point and above it. And I want to be within 15Ks the CBD. So all of the suburbs that you can afford will then come up. And this is the data that we obviously purchase monthly from SQM research on your behalf. So we collate all the information so you don't have to get it all yourself. And you might go, oh, I heard someone talking about Faulkner. Oh, on my, on my.net idea came up. And so you don't have a thousand suburbs you're looking at. You might go, oh, in actual fact, Kingsbury was a report from, you know, TerryVivida Hotspotting. So you put down the dot map suburbs that you come up with, maybe Hatfield as well, and then that allows you to take the information that you have and then what we do is we quickly allow you to gather that information and look at it so it tells you about the surrounding suburbs. So you know that, you know, are the closest suburbs actually more expensive. So this is kind of like the digital dot map. You can see closer than 14.7ks, it's more expensive. Closer at 13ks, closer at 13k is more expensive. So you can get an opportunity to compare, you know, the median, the growth over the last 1, 3, 5, 10 years, the rental yield. And as we talk, you know quite a lot about the number, the percentage of renters being over 30%, 28, 30% over that, and having enough stock in the market and to allow you to be able to make a decision around. You're going to waste all your time there or not. And then we pull it all out so that you can see the typical property and all the census information and income, et cetera. So the only reason that I share that is that, you know, the dot map is the first step in getting your suburbs together so that you can then do the analysis. And obviously, you know, you create a spreadsheet and do this in the back of a magazine. So your next question, Karen, was. So is this why we use the 10 year. We use 10 year growth, not one to three years? Yes, we use that. So it kind of gives us a better view of what's happening in the long term. Does the dot net work for units is a question. So I would not do a dot map for units. And the reason why is that unit development, unit growth and unit construction is often linked to. First of all, there's infill, but it's a council approval. So if you got one council that is going to be more amenable to units and developers, you might actually see that you've got one area that actually grows. You might see some growth of units in one area. You're not going to have a ripple effect because the surrounding councils don't support the idea. So what we're trying to get from the the dot map is an indication of really what the next suburb is that people can't afford and that ripple of price. So it really is house dependent. The other question I often get asked is, is it possible to use the dot map in regional areas and in large regional areas where there's a number of like, suburbs within, like for instance, Newcastle, it's possible and it is possible to do dot maps quite effectively. But if we're talking about somewhere like for instance, Ballarat, where there's like six different zones, you're not getting that ripple, you're not getting a pattern. So I would skip the dot map for some the smaller regional areas. And you know, you've said here your affordability is around the under $400,000 mark. Is it better not to do the dot map and go out, go as far as you can afford from the cbd or perhaps look at a townhouse that needs renovation, which is closer to the cbd, which is a whole different conversation. But I think if I was just gonna once again share my screen here and have a look at this from like a 400,000 point, so you might say, you know, Brisbane, I've got, I can afford $400,000 and it can't go above it. And you're happy to be maybe 25 kilometers from the CBD. So you're looking at what is affordable for $400,000. The question that you ask and the reason I'm just pulling this up, let's just say that we pull up here good enough. What we're trying to do here is this is data based on house information. But, you know, to give you, I guess, a bit of a clarity of what's actually happening in the suburb. If you actually have a look at the dwellings here, you can see here, a lot of people might come up with suburbs and they think these are really great suburbs and they can't afford the house there. And they go, oh, well, I'll just buy a unit. So look at Goodna here. There's almost 3,700 properties in this suburb, but there's only 17 units. And this is the real worry that I have when people go, oh my God, I've done all this research. I found this great suburb, can't afford it. And that's why we really start with that affordability with suburbs, like to software, because you start, start with what you can afford. So we're not looking at suburbs you can't afford. And it used to frustrate John and I a lot. We have these Residex prediction reports and the top 10 properties were all over what, John? A million dollars or something. So we're like. But no one can afford that. So this in this respect gives you an idea of what is in the area. So here there's actually quite a lot of semis. Now, semis, according to. Senses, semis are either townhouses or semis. So, you know, there is actually a bit of demand here for semi. So does that mean that, you know, you could fall back in this area and go, well, let's have a look at a townhouse potentially. I mean, I would then jump into maybe suburb View, etc and have a look at how many property.com summer view.com have a look how many properties on the market, how many have been sold and rented in the last three months. Is there a demand for, for these semis or is it just that a developer came in and built a lot of them and you know, they're residually there and there's not the demand. So I'd go into more analysis on that. But I guess the thing is, regarding your question in particular, which is, you know, if I've got a say, $400,000 price point, is the dot map relevant? Well, in some cities it is. So, you know, in some cities like maybe, you know, Adelaide and where else would you be? Maybe Hobart, that might be relevant for you to do dot maps in that area and get an idea of that ripple effect. But if you're talking about, you know, this next part of your question is, should I just be as close to the CBD as I can and buy a townhouse with the opportunity to renovate, that could be worthwhile. But please bear in mind the fact that a townhouse might not be the typical property and you're actually exposing yourself to greater risk. So you think that you're minimising your risk by having a townhouse because it's still close to cbd, it may not be the typical property. You may not have enough comparative information to do that. Pricing disparity between renovated and unrenovated. That's not to say that we don't expect to see a lot more townhouses and infill kind of properties in the next few years though. So it's something to bear in mind. You know, I would, I would rather be in the CBD closer to the CBD than in a small town if given the chance. But I would make sure that the suburb had the townhouse semi type of property as a typical Property. So yeah, they're in that lesson there. John. On. On that.

Yeah, no, that's good. Often comes up around the dot map. So I've got another one from Emma or have you got something else there?

I just want to see Kieran. Can you hear us? We might just see if we can add him to the broadcast and you can see him playing with things. Hey Kieran, can you hear us?

Yes, I can. I don't know what happened before, it just all dropped out.

We can hear you too. How can we help?

Well, firstly, I just want to thank you for such a great website with a such a great amount of information. I'm just really new to this group and to your process. But I have to say it's fabulous the amount of information. I think my question's a high level big picture question. I'm in Sydney and we all know what's happened in Sydney in the last little while. And you mentioned before about affordability, which is a real issue, I think. So my question from a Sydney perspective is over the next, say five, six, seven years, where do you think your better opportunities might lie? Do you think they might be in renovations or do you think they might be just simply trying to get hold of the feeders property closest to possible?

So if I'm correct, is your question in Sydney specifically, where's the opportunity or elsewhere?

Sydney specifically, simply. And the question is given the prices have gone so high it's difficult to see them going much higher. So should I be looking elsewhere is really my question.

Yeah, I think it's a really good question and it reminds me of an article which I'll share with you in a moment that I was reading yesterday about the differentials between the cities and affordability. And you know this. So we've had about a 15% drop in investor finance over the last year. And the Sydney and Melbourne markets are driven by investors. So we've seen arguably the market drop associated with those investors. You know, with the lending restrictions being pulled out and Sydney still, you know, people still need to live in Sydney. Sydney's still a big city and Sydney's still got, you know, the Badger Creek Airport and all of the developments and infrastructure that are going on. It's definitely a city that has a population that won't be diminished. However, it's interesting to see, I think the latest stats I looked at, there was 1500 people a week moving to Sydney and 1800 people a week moving to Melbourne. And if you look down at the breakdown of what the people who are moving there, there's a lot of people moving to Melbourne from overseas. So we've got the interstate and we've got the international migration that's going on. So there's a lot of additional people coming in. And as we've just seen from the realestate.com au you know, the Asian market is looking at those kind of university type suburbs. So it's kind of hard because I mean I was reading yesterday SQM research had the median house prices 1.3 million in Sydney. And you know, if we look at people's borrowing capacities and what's affordable these days, that's, that just seems insane to most normal people. And we're talking about, you know, you're not until you're like 40ks out from the CBD is Sydney that you've got 1.3 million being the median price of, you know, the suburbs there. So there's incredible cost. So I kind of look at that. But then on the other hand there's a lot of information at the moment when we look at an affordability point of view and based on the interest rates today and based on people's debt, it's actually more affordable to have a mortgage today in what people's percentage of their mortgage is to their overall income than it has been in the past. So you know, on one hand it's like can the property prices ever get any higher in Sydney? And the people 10 years ago thought the same question, can it ever be more than $100,000? You know, it's, it's this age old question, it's like can it keep going? And I think the answer is yes. And will people put up with the pain of, you know, maybe using 40, 45% of their income towards their mortgage? Yes. Will they be looking at potentially innovative granny flat, multi living, townhouse type scenarios to you know, still be able to live close to work? I think all of those are on the, the table as well. But what we're definitely seeing is, you know, a huge, huge increase in first home buyers have now gone. Finally the market's cooled down, we're back in and you know, some of them using family guarantees, et cetera to get into the market. But you know, the growth that we've seen in the central coast, Newcastle, Wollongong, I'm often doing deal reviews for mortgage clients who asked me to look at properties that looking at down as far as Berry, you know, and you know there's, there's a lot of people who are happy to commute. Geelong, Ballarat, you know, Ipswich, Toowoomba, so we're definitely seeing affordability in the Sydney and Melbourne markets. Pushing out out the Blue Mountains obviously is going to be opened up with the new airports as well. So from the point of view is, is it still okay to invest in Sydney? I think the answer is yes, but yes. And which is can I then use my money to actually get better growth elsewhere? And I think that leads to your next part of the question which is, is there somewhere else as well? Is that right?

Yes, that's right.

So one of the interesting things that realestate.com numbers have seen, so as I indicated earlier, they saw the interest in the Hobart market three months before it took off. What they've just shared recently is that they have seen an upsurge in Melbourne and they believe that although the Melbourne market has dropped 1%, which is nothing, I mean Melbourne has to drop 10% to get back to where we were at the beginning of 2017. And even then it was 30, 40% growth. So they're looking at the data that they're seeing in interest in Melbourne at the moment and they're saying that the Melbourne market's going to bounce back up within the next three to six months. So remember, we're in winter as well. This is not even a buying time. So they're actually seeing that interest in Melbourne. The reason that I've become more Melbourne attracted, and it depends on your price point again is that this affordability issue that we have between differential between Sydney and Melbourne. So I'm just going to show you this article that came out and this looks at the dwelling value differences Sydney relative to other capital cities. So you can see here there's quite a considerable difference. Melbourne's 20% less than Sydney. Brisbane's 76%, Adelaide's 98%, Perth is 89%, Hobart's 99%, Darwin's 101 and Canberra is 48%. So this whole differential I think actually has a really interesting effect. And I'll put this link below so you guys can read this article. But it's one of those drivers. And I know when we were in Sydney, my husband at one stage looked and went, look, you know, properties are 25% less in Melbourne. This is where we should be looking at this like you know, 10 years ago and it's still the story today. So I think from an affordability point of view, Melbourne looks attractive. But from a population point of view, we've actually got the external and the internal immigration happening and we've got the expenditure on the infrastructure. But More importantly, we are on track to exceed being the biggest capital city, you know, within the next 10 to 15 years. So that population demand and the, you know, what the government's doing to bring people into the area I think really means that we, we have an opportunity to catch up and respond quicker than the city Sydney market. So you know, I, I think from a long term buy and hold point of view you're probably going to get some front end growth in, in the Melbourne market before you see that in the Sydney market.

Yeah, that's really interesting observations. Thank you.

And I think you know, Brisbane also also has that affordability push as well. You know, when we're talking what was that number there? It's 76% below Sydney and that's where Sydney people are looking. And, and I think you're probably going to have some good growth in Brisbane in the next three or so years while Sydney responds, et cetera and the economy, you know, recovers up there, et cetera. But we're there may plateau again as we see Sydney market moves. Melbourne market traditionally moves, Bristol market moves, but I think Melbourne's going to be the outlier here actually responds a lot quicker than Sydney market and we actually see a sustained growth. My pleasure. Well, thank you for joining us. It's so good to meet some of the new people who have come into the club.

Thank you.

Okay John, you've got that list of questions there. Shoot them over.

I've got one more for you here.

Gary as well, waiting in the lobby.

Okay, fantastic. So this one's from Emma and she's looking at buying two properties in Queensland, one west of Brisbane and she's look, she's given away the suburbs here so she's happy to share. So she's looking at areas like Race View, East Ipswich and Silkstone and then the second property in the north of Brisbane and she's looking at areas like Strathpine, Lawton and Calangar. We always get in strife when we did the workshops pronouncing the Brisbane names. So she's looking for a long term capital growth but also decent yield so she can continue to build a bigger portfolio. So she said what's your thoughts on these areas? Other areas slash suburbs in Queensland or anywhere else. Ones that you would recommend looking into with the intent of purchasing something within the next couple of months. Would appreciate your advice.

Okay, lots of questions. All right, so, so first and foremost I'm going to put the disclaimer, reiterate disclaimer that John gave which is we're happy to give you some information here. I'm not telling you where to buy. We'd have a whole lot more due diligence around that. But I would like.

And that's right, that's the reason is because just doing a couple of minutes due diligence is never a replacement for actually going through the full process.

Yeah, absolutely. Like I know when we do our done for you service to find the suburb selection for our clients we've got like a minimum of 14 hours that we put into just getting the data right to start with. Right. So, so bear that in mind. But what I'm going to do is give you a quick way to do a high level. I want to add value. I want to show you how to use the suburb selector software so you can do this yourself as well. So let me just do that so that we can, we can jump straight into it. So not knowing your buy price here, what I would do when I was starting in any area and I have no idea of what's going on, I would probably go, you know, well even lower than that. So 400,000 to you know, 1.2 million and 60ks from the area because I want to be able to pull up the suburbs that you have indicated that you know, you want us to have a look at. So I'm gonna. They're in alphabetical order.

Raceview has got a median price of 320,000.

Okay. So we may not be down at 320. Let me, let me go even further. We're pulling up pretty much. And Ipswich, I'm not sure if that's going to get a sip switch. So let's have a look here. So alphabetically I think Lang, East Ipswich or Langton is going to come up first. So let's have a look.

And one of the other suburbs, Strathpines come up at 405. So it's in that 3 or 400. 350, 400 area.

Let's get down to East, East Heights. So It's Ipswich here. 266. Langton would be next on our list. Are we giving everyone epilepsy here? Sorry for that. Kalinga's not coming up for me. Klanga. Let's have a look. Maybe it's. I can't spell. That would help. And Strathpine and Raceview, Race view and Strath.

Alphabetical, which helps.

Tada. Okay we've got all the suburbs so you can see how I widen my criteria to be able to pull all of those in. Now this is going to get a little Bit messy. But bear with me here so that we can have a look at these suburbs and just pull them directly through and I'll give you an idea about how I might get rid of some of these suburbs just from an initial search. So if I looked at this 40% of renters, I would kick this in 11 sold per year. Do I really want to spend my time looking at that? Not necessarily. So at this stage I would leave East Ipswich out. That's not to say that there may not be a property that you found right now that is for sale and it works for you, so you want to include it. But if I was looking at areas to start my research in, I'd be going, oh gosh, I'm not going to be spending every weekend looking at a property, looking in a suburb where there's only one property sale a month. So that's how I would discuss this number of renters here. 40%, 150 sold per year. This is all good. The rental return 4.75. Feeling quite happy about that. Public housing, we'll have a bit of a chat about that later. 37% good. 78. It's kind of not great for me. I'm going to include it. Public housing here is a bit of a worry as well. 44% rate, 37 sales. Not interested. So just so you know, this is knocking out Race View for me and I'm looking here 25% and 53% sales. So I'm knocking out Strathpine and so I end up with. And the. So I've got.

Can I just give people a little bit of context too? Normally when we're up to this stage of using this criteria to knock out suburbs, they've normally got onto our list by jumping through a few hoops first. So they've either come from Expert report or they've come from the dot map.

Absolutely.

I just wanted to say that because we don't start our process this way of choosing suburbs just based on this criteria. This criteria is used to knock suburbs out. Yeah.

So we've just jumped right into the middle here. So this is how I would compare those two suburbs straight up. So I just want to get a feel for the suburbs. Three bedroom houses are the typical type of suburbs. Properties slightly lower median age. We can see here that the distance from the CBD is around about the same 9% of people at uni. So we're looking at St. Lucia. It's like, you know, 25% of people there at are at university. So it gives you an Idea if there's a university in the area. Mum, dad with kids is prevalent in these areas but also, you know, almost similar couple without children. So we're looking at at least that three bedroom property keeping in mind, family friendly. So where are the schools and where's the public transport? So then I'd be just jumping down and just getting a bit more feel for the suburb as well. So 6000 houses in the suburb. So that reflects this 150 sold per year. So this 1600 properties was 78 sold per year. This is actually a higher percentage of sales per property in the suburb obviously here. And it's interesting to see there's a number of, you know, 10% units as well and as number of semis and townhouses. So it gives me an idea that there might have been, we might be talking out of perimeter of the CBD where there's been some development going on or developers doing things. We look at this and we can see that there's been a real jump in, in growth in the last year in Calanga compared to in Lawton. So I'm kind of interested in seeing what's happened here. But there has been some growth in Lawnton in the three year growth. So it's kind of like this is now just catching up. So that kind of gives me a feel what's happening there in the area as well. And then you know, and this is the first pass of information which I then would go and get more information. So average weekly income kind of. I would normally see this type of weekly income with a higher percentage of housing, public housing. So this reflects exactly what I would expect to see. And a higher percentage of public housing is where I usually see a higher percentage of renters as well. So this to me is kind of reflective of everything that I'd expect to see here. The stock on market change in the last 12 months, you know, there's a lot less stock on the market. But remember, you know, we've only got 1600 properties anyhow and it's taking them longer to sell. So in the last quarter compared to the last year, how many days the market, the properties are on the market before they sell. So it tells me this is not, there's not a lot of energy in this area, there's not a lot of sale activity as well. And we might actually see the fact that people were thinking that they were going to start getting some good prices because you know, they didn't a few years ago. But the sellers are going, well no, I'm not going to Bring my prices down. So they're pulling the properties off the market rather than actually selling them. So that's what that story tells me. And here we're seeing the same thing. There's a bit of a blowout here in the days of the market, but here it's a little bit more interesting because we have the stock in the market hasn't really come down that much. So it just tells me that the interest is deteriorating. So probably the people who were looking here going, wow, prices have really gone up, I don't really know, 7.7% in the last year. I don't really want to be buying here now. So this is what this information would tell me. And then I'd look at things like vacancy rates, say, well, how can I minimize my risk? So from a vacancy point, you know, at 3%, we're saying there's as many properties on the market to rent as there is people looking to rent. So vacancy rate is higher here than here and the returns are, you know, kind of similar. But from, you know, looking at these, this vacancy rate, I would be looking at a little bit more information around what is actually on the market at the moment. As I said, this is the first step of doing the analysis and then you go deep dive and as you know, if you're in the location masterclass, we then give you other websites and things that you go to get more information. But I would be mindful of the fact that this has, if I was comparing these two suburbs, you've got a better opportunity to buy in this suburb. You've had some good growth and there might just be some disinterest here at the moment. So this could be some opportunities sweeping. You've got great rental returns, public housing, you don't need to really worry about. It doesn't really indicate to me that there's a lot of development happening here as we are seeing in this kind of 10% of what's happening. So if I was going to have to start going, okay, so these are two suburbs that I want to take further and do more analysis on at this stage, I'd be kind of hanging towards this area, over this area to do my first pass.

Yep. And that first step too. I mean obviously you can see that the 10 year growth is very low. So it's, it's probably unlikely that they would have made it through to the short list. One of the things that we're looking for is we just as we went through with the question before about the dot map, are you looking for the 2 increment rule between the past 10 year capital growth. Another thing that you're looking at is which is in the location Masterclass and the ultimate guide and even your property success club module one is that it's had a past performance of capital growth because you're not looking for a miracle. One that was always a ugly duckling and suddenly it turns around, it has to have been a reasonable suburb to begin with and seen and there wasn't anything major wrong with it. So one of the ways we do that with a done for you services we say has at least, at least outperform the metro area, the whole Metro area for 10 year capital growth. And that way at least you know, you're getting something that's got a pretty good foundation to start with and then if you've got 2% increment rule on top of that, then you know, things are looking up, things are looking good.

Yeah, no, I agree. So yeah, I hope that helps Emma with her questions. But I mean purchasing in the next few months, it looks like that 400 pricing mark, it might be where you're looking at buying. So you know, you're obviously maybe 20Ks out from CBD Brisbane and you know, you would be looking at the analysis and these questions and public housing and socioeconomic areas and all of those things. If you're going to be geographically agnostic, you might look across Australia and say, well for $400,000, where's the growth potential that's driven by population and driven by demand and income and where can I see this? So what you might see is that you might go, well, you know, if we look at the capital cities, Sydney and Melbourne, the major regional areas out from them, Wollongong, Newcastle, Central Coast, Geelong, Ballarat, maybe Bendigo, you know, where can I afford there and is there more population or can my money be used better there? So from a long term point of view you might go, well let's have a look at Ballarat. You know, we learned that Soldiers Hill is on the list, Soldiers Hill in Ballarat's on the list of where people are looking, you know, what are they looking for, what type of properties, you know, what kind of concerns I need to be aware of and what do I look at? But I think you've got an opportunity, you know, $400,000 to ease your money well and decide exactly, you know, where you would like to spend your, your money to get the best return for long term, long term growth. And yeah, I would be looking outside of your current areas as well. But I Hope that's given you a little bit of assistance of those six suburbs and how I would quickly, you know, kind of look and do some analysis on those.

Great. Well, that's it from my end, Jane. There's no more questions on the list. I know we've run over time by 15 minutes, but.

Let me just check the Facebook page and see if we've got any questions.

I can't see any there at the moment. Unless.

So, Jody, she can't go live, but I have just enrolled in the Ultimate Guide to Renovation. Completed Module one. I love module one. It's all about goals and getting. Getting that right to start with and setting your strategy under your risk profile. And I've partially completed my dot map. I'm finding that the opportunity to find areas with a 2% jump to show the ripple effect is not that common. So I'm wondering what state she's doing. We are just starting out and have a limited budget of approximately $500,000, but are willing to go further out to accommodate at. What advice do you have regarding the 2% increment if it's not there? I have done many map recently and looked at many people's dot maps and I have to say that every major city that I've looked at, barring Perth and Darwin, has had 2% increment. So, Jodie, do you want to just type in whilst you're. Whilst we're talking about this, potentially where you're looking and the city that you're looking at? Because it might just be.

Vic. Victoria.

Victoria. Okay. So if you're looking in Victoria around that 500 price point. So I know we did some analysis, John. I think we had Russell when he originally looked. Yeah.

So what might be happening there is you. Is that's the 500 price points forcing you right out into the Green Acre stuff. And. Yeah, so that. That could be. Could be the case.

Yeah. I think that's what we're seeing here. Because when we start looking that far out.

Because it wouldn't be. So that's what. Because certainly across a Metro, you would be saying there's plenty of 2% increment across Melbourne Metro. But it's the. Because with that price point, obviously you're further out, then you're probably seeing a lot of those outer areas the same color.

Exactly. And if we just have a quick little look at like Coolaroo or now I've only said within 20Ks the CBD. So these areas. So I can get my eye. My eye in where we are here. Coolaroo. It's not an area that I know well. Oakland's junction. Oh, I used to as an explosives engineer, blast there. Okay, so we're out, we're out past Tullamarine here, Broad Meadows. So I think John, when you and I looked at analysis, someone who was at the 600 price point, Broadmeadows had just come up and there was some, some mental pressure crossing the, the main road west freeway. So we're looking at Kularou. We've got. Yeah, so we're looking at the 10 year growth. So even here, I mean this is almost a 2% difference.

Yeah, there's one there, but it's not.

Close to the cbd and sometimes by the variability of access that can be that they're actually closer by car than they are by line of sight. So you're right, there's not a lot of 2% differentials there that would come up in that price range. So I think as, as John suggested, you know what you'll find sometimes is that the dot map, as it gets out to the edges of the city, you start also having, when you have those house and land packages where they haven't been property sold before and all of a sudden there's property sold, you have this artificial growth as well. So that's why it's interesting to look over the 10 years to see, see what's actually been happening there and then looking at sales over the number of years as well. So I think that you know, from, to answer your question, sometimes the dot map provides suburbs for us and sometimes it doesn't. It's one source of information that goes into the assessment criteria. So if you're at that 500 price point, I probably encourage you to essentially, you know, go a little bit further out and maybe look at say Geelong or look at Ballarat if. And that might actually be something that you can start considering. And once again, as I said, you know those Brisbane, Russell, if you're following Russell's blog, where he's been packed up his house and his dog and his Newton went and renovated for four weeks in Brisbane recently because he couldn't afford, wasn't happy to go to Broad Meadows and couldn't afford Melbourne. So that's where he, he went. So I think it probably gives you an opportunity to be geographically agnostic. You can say, well, what's the best value that I can get for this? Oh yes, and Jody says Coolaroo is one of the suburbs. Oh well, let's have a quick little look at Coolaroo for you. Just a little bit further so we can make sure that we can give you some information on that. So coolaroo. If I'm looking at this, it's got. Let me just bring this over. So 27.7% of renters, that's okay. 33 properties sold per year, that would hurt a little bit. This is much higher rental return than what we're seeing for the rest of Melbourne. 33% of renters, 47% we're seeing here for 47 properties sold. So you know this area, three bedroom house, got a younger kind of demographic down here in Dallas which is a little bit closer to the city. Three bedroom property, Mum, dad and the kids are definitely the majority of what we're seeing in the demographics. This concerns me the number I wouldn't be spending a lot of time in these suburbs. They just don't have those number of sales going on. Smaller type suburbs as well has had some really good growth Dallas in the last 10 years compared to sustained growth that's been going on. So that's where we're probably seeing that, you know, there's some pricing pressure from this area that has been ripple effect coming into this area. So it's a little bit closer to the cbd. And we would then have a look at this and see average income. So this is very low average income. So 850 kind of makes me wonder about areas. So less than 850 per week. This, this is quite low. Some of the lowest I've seen in Australia actually public housing. So I've been very conscious of the fact this public housing issues potentially here, the days on the market are getting less here. So there is a bit of interest. People are looking here, 0.8% vacancy. Now this is unusual, this is very, very low compared to the number of percentage of renters that they actually have. This is, this means that as soon as there's a property purchase is pretty much rented out and these are really good rental returns.

So imagine there's probably new properties, a lot of those.

Yeah, exactly. So there's probably a lot of developments and things that are going on in that area. So I would be doing more research into. And you know it's got some good 10 year growth and 5 and 3 year growth. So it's not immediate developments that have happened there. There has been some growth etc but you might just find that has been some development that has been going on in that area for a period of time and the, the properties are affordable and hence people are renting them. But you know it would possibly be a marginal growth play because you're on the outskirts of that CBD kind of Melbourne pusheen. The dot map is not really giving you that ripple effect but you've actually got the benefits of having trained to commutable distance to workplace in the cbd. But you've also got a really good yield. So it's almost like a not as good growth but a better yield play in Melbourne. If you were going to be looking at.

You just want to touch on for a moment the downside of Green Acre and also the benefit.

Being what, sorry, hemmed in.

The benefit being in a built up area surrounded by other suburbs as opposed to being on the edge of the city. Just, just in broad strokes because I think we didn't quite touch on that.

I think the, the house and land packages that we're seeing more and more and obviously the outskirts of these, the cities. What we've seen, you know, over the last 10 years, for instance of Point Cook, you know, there's a large demographic, Indian demographic, people who like living there. We saw these great big blocks and you know, there was the demographic traffic move there and the demand and then the developers like, oh I can sell a smaller block. They started selling smaller blocks for the same amount and the demographic weren't as loyal as we'd expect and they moved to the, the newer property that had less problems. And I guess this is the problem with the greenfield kind of sites is that there's nothing that is actually distinguishing your property. It's like off the plan, inner City Apartments, 200 apartments, all the same, except one might have a view one side for instance. So there's not a lot that's differentiating it. It's not an opportunity for you to add equity and improve or differentiate the property yourself either when it's new. And also in these greenfield sites, you know, we've seen this Tony in Melbourne and you've seen it, you know, in some of the outer suburbs in Brisbane as well. There's been Logan or Deception Bay, etc. You've seen these developers go in and they build up an area and the old weatherboards are gradually being knocked down. And it's also, it's almost like there's two property classes. There's the new properties and there's the existing older properties and these are at a lower price point than these are but they're actually lifting up the entire growth of the suburbs. So it actually artificially often makes the suburb look better performing. And that's why we used to love the resident reports because they're only looking at established property resales. They weren't looking at all these.

Yeah, because they have a growth. As those properties come onto the market, it's new stock onto the market. And as each of them make a sale, the median goes up and you have that. That growth phase. But often they might be smaller blocks as well. And when that development phase is finished, it then stagnates because it wasn't indicating the overall suburb performance, it was indicating a suburb development coming online, basically.

Yeah. So, great. Well, Jody says Dallas and Coolaroo were two of her suburbs. She needed to be within one and a half hours of Southern Cross station. So I'm glad we could help you doing that. She says. Is there a particular map that is suitable for creating a Geelong area dot map. We actually live in Point Cook. Aha. Currently. And so much development. Yes. My gosh, I'm hitting all of your. All of your questions, aren't I? With Geelong, we have. I mean, we. We recommend the Hema maps that you can use. So I would.

Mapworks.com.

Lovely people. You can get your quarter inch translucent.

If you're going in. Leave yourself a little bit of time. You might be having a chat.

Good thing I have a chat. He loves his maps, he loves chatting. So. Yep, go and have a chat to him. Yeah. Well, John, I think that's all our questions. I hope we've added some value to people. Thank you for joining us. I know it's lunchtime on Thursday, so last Thursday of the month we will once again be doing Facebook Live. And you can please send your questions to questions@yourpropertysuccess.com and. Yeah, anything else, John, before we head off?

No, we're through all the questions, so I think we're all good.

Excellent. Well, look, guys, as always, we hope you have your own property success and please add some information into the Facebook page. We're writing articles at the moment for magazine and we're looking for case studies. So if you've got some case studies on bathrooms, kitchens, decks. What else, John?

Any renovation case studies, any property investment, recent stories at all we're interested in. The other thing, Jane, is we've got a webinar coming up and it's all about how to increase your rent, basically how to get your rental property paying for itself. So anyone that's done things like short stays, rooming houses, Airbnb, maybe make doing a makeover of the property to increase the rent. Any ideas about creasing the rent? We'd love to hear about and we'd love to have you on the webinar next Thursday.

Or reducing your costs.

Or reducing your costs. Yep.

Innovative ways to actually make your property pay for itself. So, yep, next Thursday night. So, yeah, really? That's the 2nd of August. Check that. But, yeah, next Thursday, 2nd of August. But please, you know, we'd love to hear your case studies and your stories and we'd love to share. And we'd love you to share on the webinar as well. So we can organise a time to chat about that. But please, either PM John and I, or put some information about your case studies in the Facebook page and use the units as I showed you, to probably get to some of those quick questions quicker.

Yeah, that's right. Best email address is supportourpropertysuccess.com and as.

Always, here is to your property success.

See ya.