Your Property Success Mentor June 28-06-2018

Hey everyone. Hopefully we're coming through loud and clear there. You just type into the chat. If we're coming through there, that would be fantastic. Most appreciated. We like it when the technology works. So just before we start, we need to do our disclaimer. It's important for you to understand that you need to take care in applying what you'll hear on this webinar to your own personal circumstances. Everyone's situation is different and all the information in today's call is based on our personal experiences and opinions and is not intended to be specific to your circumstances. We're not real estate agents, financial planners, lawyers or accountants and are not liable for any loss, damage or misunderstanding caused by reliance on any of the information provided or information. Now, just to let you know that we also record the Q and A webinars so we can share them with the rest of the community who are not able to make it live. So by participating in the call, you're acknowledging this and with all that out of the way, let me invite, if I can, Jane Slack Smith. Hey, Jane.

Hey, John. Hey everyone, how you going? And welcome to the June 2018 mentor call. So this is the call that we do every single month and I'd like to welcome obviously all the new members to your property Success club where we're hosting this call. Everyone from the Ultimate Guide to Renovation, all our past students, the Diamond Investors Choice clients, and it is so excited to have you here. But in actual fact, I'm not quite there, am I, John?

No, Wes.

Here you do what you just did.

For me and you just do a little. We'll see if people can guess.

Okay, well, I'm going to take you on a bit of a tour now. Please excuse me. Excuse the bags under the eyes. I'm going to give you a little hint. It's 5:30am here. Up there you can see Finland and over here you can see what's known as the old town. So. And here is like a 16th century tower. So just a little heads up, I'm in Estonia today.

So you're not in Melbourne?

Not in Melbourne, no. I imagine the weather there's a little different to here. We've got about 27 degrees, I think planted today and 15 tomorrow. So Melbourne weather tomorrow, very good.

So why are you.

Oh, gee, it is one of those things. It's been a very interesting month, John and everyone. So essentially around about 15 days ago, I applied to what's known as the Mindvalley University. So Mindvalley is a organization. They're an online Education portal and they bring the best and the brightest of entrepreneurs and health hackers and wellness people together. And it's around an entire personal health and well being community. And you know, they share business ideas and they share things Anyhow, so I've been a student of theirs online for many years now. Unlike our online education platform that we have John imagine, you know, with some of the hiccups and technical problems we have every now and then they have 3 million people who are students so and in their community. So you can imagine what an incredible organization this is. And the probably got a few more.

People than us peddling the wheels behind the scene.

It's not just you and I in the middle of the night going what went wrong? And so there was so Vision who is the founder of this organization which is a great name, Vision with Vision. They're based in Kuala Lumpur and he has this vision that educ education is not just based on a piece of paper that you go to university for four years to get. In actual fact, life is what's so important and the education you gain from all of these other things and experiences and being a true world citizen Anyhow. So he had this plan last year that for one month of the year he would pull together entrepreneurs and wellness people and personal development people who are actually on a quest to be better and create more and create a legacy for a month. And he did that in Barcelona. He brought 300 people together and that kind of fixed, that kind of worked really well. And this year he had a vision of bringing 800 people together and he chose to Lyn in Estonia so chooses a different city every year and had to do a whole application process and link through articles on why you are someone who can contribute a but also, you know, be someone who can take this information to the wide world. And as you know I, you know, I have this absolute belief that, you know, we are trying to assist people to get over the money worries so they can get on with life and live to their full potential. I'm all on that quest about living to their full potential. So as part of that I go through the adventure with me, I'm going to be sharing that adventure. And it's. Some of the stuff's a bit zany and I think I'm a bit out there with it.

Oh, we want to hear about that then.

But there's other people here who are, you know, million views on YouTube and vloggers and digital marketing experts and education experts with very large education platforms who are always trying to add more to their community. So it's all around how to add more. And so I'm on the quest to become better, to help you to become better. And I've also now I think I'm officially at about the 18 month mark of having continuous pain in my foot and hip from cartilage damage and surgery didn't work. So I thought, oh, I might just try to hack some of these energy healing, voodoo kind of stuff as well. So let me meet up with some of those people as well. So I've created a page, you can follow me and my adventure. It's not your property success club, it's your success club. And I'll put a link in later. But this is day one of that and gosh, we'll see where it goes because I'd love to hear about other people who are on, you know, a bit of an adventure and quest as well to, to, you know, live fuller and be part of the real. Immersed in the lives of their, you know, colleagues and friends and family and kids and, and everyone community that they're trying, what I'm trying to do. So it's not just about my success quest, it's about yours as well. And we're looking at things around curiosity, wellness, health, spirituality. You know, you put it out there, people are on a quest for different things and I think success means different things to other people. So that's why we're here.

That's awesome. Well, there's a couple of things I recommend we should drill down into there. But firstly, what did you know about Estonia and what do you know now? What can you tell us?

I think I could, all I could tell you was it's in the Baltic region and I think it had something to do with black bread. So that was about it. What I learned in the last 14 days since being accepted and scrambling and to make this happen was what I really loved about this program was that. And what kind of pushed me over the edge was to sign up is that they have a kids program going at the same time. So wow, talk about a holiday program for kids. My son's on his three week break at the moment and they said something along the lines of are you your kid's flatmate or are you immersed in being part of their life and contributing on the adventure that they're on as well. And I thought, God, imagine being 10 and going to Estonia. And then I thought, where is Estonia? And now the thing that I, the thing that I have noticed is that we're only about three hours by Ferry from St. Petersburg. So the World cup is going on at the moment, but there's also, you know, a lot of things up there. But Top of the world knew nothing. And it's funny, I've just started reading a book called the Lace Weaver that set in Estonia in the war period and the fact that the Russians had come in and pretty much killed people who, they, they wanted to reclaim the Baltic states who, who disagreed. And it's apparently set a dour tone on the Estonians. So they're not apparently a happy people. And there's not a lot of touching feeling going on. So I'm gonna have to pull back on my. In my indiscriminate kisses and hugs. But I think there's 8, 800 of these entrepreneurs coming to Estonia. That's probably gonna shake up the town a bit. But yeah, look, it's just amazing and very, very similar to our community. You know, they have a community at the moment and everyone's sharing things. People have been here for two, three weeks in setting this up and they, they're showing these. Okay, I just have to show chocolate. Apparently they have amazing chocolate. As you can see getting in late last night. I have. Have.

Just hold it up again, Jamie. Miss it. Oh, look at that.

Yeah, looks pretty good, doesn't it? So I'm going to hold that. Yeah, I know. And I resisted. And there's. So there's chocolate shops, there's, there's. They're known for, I think for their Slavic kind of coleslawy stuff. But I am going to a 15th century medieval dinner with, with inappropriate probably food on the menu. But there's. I think they said bear and wild boar sausages, so apparently that's a common thing that they eat. I don't think I'm going to indulge, but I'm going to be part of a 15th century thing. So not a lot of. I didn't know a lot about. Of Eston at all.

Yeah, very good. So a lot of people would probably be interested who have been coached by you that you're being coached by someone else. So why do you need a coach?

Oh, my gosh. I have had a coach. I think when I started my mortgage business back in 2005, I did that with a coach and I had that coach with me for about 10 years and then I moved on. When I wanted to have an education business, I wanted to find the brightest who was out there doing something that was different to the, you know, steak knives kind of selling. I wanted someone who was with Integrity and I found someone in the States and so I was mentored and it was a lot more expensive than the normal kind of coaching, but mentored. So I flew back and forth in the states as part of a mastermind, doing that for a number of years. And then you know, I think as you grow you need different people to be alongside with you. And you know, I could see a lot of the educators that I was kind of watching in Australia and it was kind of same old, same old. Not a lot was changing and they, I didn't feel that they were integrated into the community. So you know, I really wanted to find someone who had, you know, basically was on a quest to make their community a better place and make everyone in the community create the vision that they had for themselves. And you know, through property investing I know exactly what that has done to my family. It has given us the, the ability, you know, with 14 days notice to head off to Estonia and you know, for my husband to stop full time work and become follow his passion, which was being a painter. Not a paint painter, but an artist painter. And, and yeah, so many have.

How many people have the love call of Lynn Bait or a plaster mind.

You, we did get a call from the local school that said oh, you know, could Todd come in and help out? Someone's put a hole in the wall and we need it painted. And I was like yeah, we could, we could help out. Yeah, we've got renovation skills but in actual fact he's not that kind of painter but we came and helped anyhow. So yeah, it's one of those things where it's been an interesting journey and I've always had a coach and I have a business coach at the moment as well because you know he set up many businesses and, and sold them with the intent of, you know, continuing growing himself and but you know, he'd been in the fast 100 biw etc and he'd taken businesses and people within the businesses and he had basically let them soar, let them sing and let them live to their potential. And that was very much something that I was looking for. And John, you and I work with Mark now and you know we love the results that we have and you know, the focus that we have. So yep, I'm all about doing that and vision from Mind Valley exactly the same. I've done some woo woo courses there that had me thinking but it had incredible results and I think I shared last month my send out a message to the universe going, yeah, show me some abundance. I want to send some abundance to my club community and I'm the one who won like five out of the ten lucky door prizes at a conference. So you got to be worried. You got to be kind of open to these things.

Being careful what you ask the universe for.

Oh my God, it's always listening.

So Jane, we've got some questions already today, which is great. We've got some pre written ones and I can also see a couple of guys getting their cameras ready to hop on board. So I've got Sue and Vitaly popped in and then popped out again. So Vitaly, if you'd like to ask a question on camera which we always love, prioritise, jump back on and I'll, I'll take your question shortly. And sue, we'll take yours. I can see you've disappeared there for a moment, but if you want to come back on, we'll take your question shortly too. Okay, so let's go from the top. So this was a question for tomorrow. Now who asked this? That was asked yesterday and it's from Leon and he said which type of roof tile is popular for modern two story houses in New South Wales? Also where can I roughly find roughly pricing on different tiles? The supply below will not give pricing to individuals.

Okay, that's probably your question there, John.

Okay.

Any experience in tiling in New South Wales?

Well, not really. I've experienced in cleaning tiles in New South Wales we cleaned some tiles on a house but I think, I mean there's the big suppliers that you're going to find in the same way that I would buy the Googles and so.

On.

People like Boral and so on. You can go out and have a look at their yards. They've got all their tiles set out. I assume by saying it's a modern two story house. I can't work out from that whether it's a renovation or a new build. If it's a new build. With our developments we tended to go like we probably should take this back but I'll do that in a second. So we'll go first with our developments. We're in an area which had, it was high end, over 2 million dollar houses, typically right up to 5 million dollar houses. Most of those had slate roofs. So we were doing a side by side townhouses in this suburb and the tiles we chose were a concrete tile that looked identical to slate and very, very high. So it was a perceived value thing that it didn't attract, still looked very much in keeping with the area. Dramatically reduced the cost. So that's the way things. It's always starting with value.

But why was the concrete tiles cheaper? Just slate as a premium product?

Just for the material? Yeah.

Slate has to be like Lemon X and Caesar sewn. Kind of.

Exactly.

Okay.

Yeah. So concrete's easy. And so they color the concrete, they make it in a mould that looks very similar to slate. And it's not until you get it up or you can tell from a couple of meters, you know, someone who knows, but at 12 meters up in the air or 15 meters up in the air, it's fine, it looks fine. And it suited the area, which is the key thing. It's that suiting the demographic. And with all these renovation decisions, what you're going to be doing is you're going to be looking at what you're renovating up to. That means going around and looking at all the houses that are at the resale level or the revalued level. If you've got a place taken from this level to this level, what are all the houses at this level look like? What material do they have on the roof? What cladding do they have? And render weather. So you're just trying to get something that'll be a fit for the area. And occasionally I've had people that have their own likes or dislikes about roofing material and they haven't taken what that market wants into account. So someone who's looking in that area and knows all of those type of houses in those in that area, they want a typical property, otherwise they go to a different area with different housing style, you know. So I was thinking one guy and he's going to rip the tiles off the roof and put corrugated iron on the roof, which is a huge expense. Probably cost me about 10, $12,000 for no other reason than he likes corrugated iron rather than tiles. So, yeah, it always comes back to what you're renovating up to.

And I guess just to answer your question, also around costing, it's always, as John said, it's really difficult sometimes to get something to build your costings, but if you have the kind of tile in mind and what you're after and you know, suit the area and everything that John just said, there's places like Graze online and there's renovation auctions that you can go to and you can actually pick up, you know, there's great big developments and they end up with a large amount and they need to sell them. So be very specific. You may even get someone to go and do a quote for you and Come up with the amount that you need because you don't want to have half a house in one color and half house another, which can be a little bit of a problem when you go to those auction houses. So yeah, I would suggest that if you're looking for an alternative, you might let your fingers do the walking a little bit as well and jump on graze. Online, even ebay has some of those big things. But you can actually go out to auction houses and I know they're in pretty much every capital city. There's, you know, I think Thursday auctions for carpet and you know, Fridays for tiles kind of stuff and check them out.

Yep. The other thing, unfortunately, like a lot of products piles is really heavy. So it's not the kind of thing you typically import. It's normally locally. It is stone is. But tiles are typically manufactured locally. I wouldn't be asking builders too because builders have a whole list of suppliers that are really hard to find. Like by searching online. It was actually easier in the old days when you used to do everything through the yellow pages because a lot of these guys still aren't listing themselves effectively online. So if you Google, all you get is the five year old business that are savvy to using those different kind of social platforms and all that kind of thing. Whereas a lot of those old school suppliers where you get good quality supplies at a good price, the builder knows. So be asking as many builders and carpenters and trying to get referrals that way. Good. All right, sorry, I'll go back here. All right, next question. Jane. All right. Now I think this might be from Vitali, but Vitaly's camera's disappeared. So I'll just read out the question instead. Charlie says on selling, I'll just check this is correct. No, Vitaly's question is different. How predictable do you find capital growth to be? Have you found over time the predictions you have generally come out with in line with the research and it's much like paint by numbers or is it much less predictable?

Vitaly, that's a really good question. And I think it's something that I've been skeptical of over the years. So I started tracking all the people who were doing the predictions, being the engineering me, you know, don't just believe one person's data. That's why, you know, obviously those in the location masterclass as well, who I forgot to welcome, welcome. They it's around getting as many experts and opinions together and collating those and then doing your own analysis. So, you know, I remember I Tracked Australian property monitors. It was Residex, it was rei, the Real Estate Institute. It was RP Data. Just lost John.

Sorry, did I just do that?

Yep, there you go. We're back. So we've got. So I went through all of those and they actually tracked them over five years and Residex was the one that was absolutely on track the entire time. So it was kind of interesting to see all of that information over that period of time. So that was around 2009 to 2014, obviously. Residex has now been bought by CoreLogic RP Data. CoreLogic RP Data don't do predictions. And they are working on an algorithm which they've been working on for about 18 months, to replace the Residex prediction model. So apparently that's coming out this year. So basically, you know, that's why we talk about that dot map exercise, where you're trying to find where the past growth has been and where the ripple effect is going to take you to the next growth. And it's kind of like manufacturing your own predictions. I mean, Australian property monitors are still putting predictions out. I used to, I think I've got 10 years worth of the Sydney Sunday paper. They'd put them out twice a year in autumn and in spring, and they'd list every suburb down in a pullout magazine saying, you know, what the prediction is going to be. So I did that for many years. But the thing about predictions is that, you know, it's crystal ball. It's like, what's going to happen to interest rates? What's going to happen to the economy? What's going to happen to the world economy? You know, we could never have planned a for plan for 9, 11 or for the banks in the States creating liar loans and all of those kind of things. So predictions are really good on one hand in the sense that it's great to see what the experts are thinking. And I always read the banking plans of what they think are happening. So Anz recently has come out with an interesting what's going to happen in the future? We're constantly seeing experts say one thing's going to happen and then there's some changes and they bring it back. So SQM Research Boom and Bust report, you know, came out in October last year, it was updated in May. And, you know, Louis pulled back on some of his predictions that he felt that were going to be in some of those capital cities. So it's really important to kind of monitor what's happening, but be responsible for your own interpretation of that. So, and that's why we talk about the dot map, that's why we talk about looking at reports, maybe like the hot spotting report, because it talks about infrastructure and it talks about the things that we know promote growth in areas and population moves and employment. So you know, rather than picking up one report and saying hey, you know, someone expects that it's going to be 7% growth in the next five years in Melbourne, let's go buy there, rather than doing that, you know, what I would rather do is get a group of experts that you follow and you know, I'm always collating and curating that and promoting that. So you can see that within the club when I come across reports as well and then making up your own decision. So we know the factors that drive growth. You know, there are also those micro and macro economic changes. You know, the Queensland has just put out a budget, you know, it has some implications there. State budget changes in New South Wales around first home buyers and their grants. We know that they traditionally can also give a bit of a hike. But we as property investors are looking at the long term. And so rather than looking at these tiny little things that go up and down, I'd rather look at the big picture and say okay, so what's driving growth and are those factors actually in this area? So start with all the reports, put them in the suburb selector software and then start running those suburbs against each other. Because we want to look at the now as well. We want to look at vacancy rates now, percentage of renters. Now all of Those, you know, 35 factors that we talk about in the filtering system that we have in the Location Masterclass framework that is, you know, allows you to use the suburb selector software and then run those suburbs against each other. So good question. But my answer would be don't depend on one expert, create your own methodology. And we've obviously Location Masterclass have tried to do that with you and for you and those in the Ultimate Guide to Renovation that's around module two and three.

I always think too that obviously there's no crystal ball, but you think of all those steps in Locations Masterclass and that process of elimination, how many hoops you have to get that those suburbs to jump through. So if you start off with you've got a whole list of suburbs that are the in your budget, let's say $50,000 and then you overlay all that criteria, you know, number of sales and low vacancy rates and percentage, you know, the 2 increment rule, pricing pressure and then you dive down into the demographics. If you Think of those like all those as checkboxes. What you're doing is you've got a list of suburbs that you can afford and you're trying to choose the suburbs that got the most ticks and most important boxes. So what you're really doing is just stacking those odds in your favor and you don't. So theoretically that should perform all of the other outperform all the other suburbs that don't have all of those checks and all those boxes. So you don't know how much outperformed by, but you're giving it the best chance too.

Absolutely.

Yeah.

All right. Vitaly's got a second question and he hasn't shown up back here with his camera or not. There's also. Do you believe that driving cars will have a significant effect on property markets in capital city? Would it be foreseeable that being close to public transport may be less important and properties a bit further away out of a capital city centers will experience greater growth than noodle ring or inner city properties?

Sure. Look, it's a really great question. I followed peter diamantes from SpaceX, so I'm part of his abundance community. And I think it would not be every three days I would get an alert as to the latest studies and information that is going to affect the world, be it a health thing, albeit changes in technology or Elon Musk doing his latest thing. And I think that the most interesting lecture that I watched on this just really recently and because I kind of couldn't get my head around the fact that everyone's having this debate about self driving trucks and they're saying by 2025 all the truck manufacturers will actually have self driving trucks. And you know, you don't have to wait for Peter have a sleep this 25 for our driving abilities, you know, the proof they have around safety, et cetera, speeding, blah blah. And I was thinking why is this such a big deal? And then so I was listening to this future of jobs and, and what it means to our economy and Tony Robbins and Peter Diamandis were having this conversation about it. And out of the 52 states that are in America, 17 of them, the number one job is truck driver of people of employment. And so they're actually talking about some insane, you know, they're talking about something like 20 million truck drivers or something that could be done without a job in the next five years. So this kind of watching what's happening in technology and the disruptions that are happening I think is really very important. And it's One of the reasons that I'm here in Estonia, because there's people who are presenting on some of the latest things. Estonia? Why is Estonia in itself, there's the highest per capita startups and tech companies, disruptive companies anywhere in the world starting in Estonia. Skype and all of those companies started here. So I think that the thing around self driving cars and in a community at the moment, who's talking in that abundance? Sub community, we're talking about this and we're talking to a couple of property developers in New York and California who have been, who are developing these great big buildings and we're saying, well, what happens to the car spaces of existing buildings? So there's been, you know, turning them into like little office hubs, turning them into little private gyms, turning them into storage areas. So there's this whole conversation going on, retrofitting these usage. But also the Uber drivers, which Uber is obviously in Google, are obviously using this technology and trying to get there sooner. But the, the Uber drivers are actually needing to park their cars somewhere and they're talking about Uber drivers not, not driving themselves, but mainly only three, four or five of these little cars themselves and be almost back into that taxi environment where, you know, a taxi guy owns five cars and has people driving for them. He just has. Yeah. And I've seen a couple of designs for the cars as well. They have gyms in them, they have beds in them, they have workspaces. Obviously you don't have to have all of the mechanics of having the driver's seat, you face each other. So there's actually this incredible designs that I've been watching as well. But what that brings us back to is will people start using this and what the effect it has on pricing. So public transport is important, obviously we can see, you know, for renters it's important when we look at the census data, we see how many cars people have and you know, we can actually then have a look at the, oh, I can't remember the name, High Cap. The High cap studies they do every year where they say what distance people drive to work comfortably and we've seen that, that get bigger and bigger. Will that mean that people are driving from, you know, Lithgow to Sydney potentially, if the drive time is shortened so, you know, that comes back to infrastructure. So I'd rather watch some of the infrastructure things first. Will people still be happy to sit for two hours in a car and live further out and you know, potentially optimize their time whilst they're in the car? Maybe sleeping on the gym or you know, working. There's, there's that question as well. I think there's, there's something to be said about the self driving cars in how it might affect our lives. And I have no doubt that it's coming and it's coming quickly, but I think we're probably going to see more, more opportunity for people to potentially work remotely before we see self driving cars actually affect the way that we buy property. So I'm thinking, you know, we're going to have the early adopters in the next maybe three to five years. And it's interesting, you know, I drove to Daylesford a couple of weekends ago and there was like a electric car plug in thing and I drove out of London two days ago and there was like every car had an electric car plug in. So there's Teslas everywhere. So I think it's, I think it's, it's coming. I don't think it's going to change things very, very quickly, but we definitely have to keep monitoring it.

There's lots of lifestyle things too, isn't there, that you would still, that still mean that people like to be around city centers or bustling places. I reminded of Arthur C. Clarke talking about the personal computer. One day everyone's going to have a personal computer in their house. They'll be able to do all these things, including their shopping. And what it'll mean is we won't have to do as much work. We'll have a lot more spare time because the computer will do all the work, you know, so you don't really know what a lot of things this is going to actually mean in the future.

And I think that just on that point, the thing I love about that is that we think someone coming out and saying something like there's going to be a computer in every home and everyone's going to have a computer and was like, what the, that's never going to happen like 20 years ago. And now it's like, well in actual fact you, you can have a computer embedded in your glasses or in your brain within the next 10 years and everyone's gonna be what the. And so I think it's the next thing. And, and you've seen these big calls that have been made and some of them have come to fruition, but they don't come quickly. And I think that's, I think, you know, what I'm, my feeling is, you know, the, the Googles who are putting up these satellite, I don't know, Wi Fi Hubs, for want of another word, with balloons and things, who are connecting the billions of people who are out there in the third world and giving them free laptops and computers and things and bringing them online and making them part of a bigger community. And you know, there's the whole microeconomics thing. That whole change in the way we're going to see the, the world operate is going to be pretty interesting.

Yeah, it's amazing. I'm really excited. They're talking about the technical revolution will be greater in scale than the industrial revolution. It's just going to be exponential.

That's why John and I monitor this personally.

The one that I like, I'm most excited about, the hyperloop, which is Elon Musk. The cars drop into tunnels and connect like a, like a parcel would at a freight at an airport, you know, drops onto different slates and where you go. So anyway, we digress. So Yukamasa, I can see that you're there with your camera patiently waiting. Just wave if you'd like to be on the court. Beauty. I'll bring you up and we'll take your questions from you. Okay. Hello, how are you? Oh, hello.

Yukimas are here. Oh, hello.

Welcome.

Yeah. Oh, thank you. I just joined in recently.

Yeah.

And I, I got an email. There's the, there's this show. So I just, I was just on the listening in at the moment and so.

And how did you. Did you join us with a particular course?

Yes. I listened to your podcast and I was impressed with this suburb locator.

Yep.

Thing. Yes.

And have you bought property before? Are you looking to buy your first properties?

So I bought my third investment property in March.

Oh, congratulations.

Yeah, so. So the first one I bought in glen Iris, a two bedroom flat that was in 2004. 14.

Yep.

And then, then in 2017, in November, bought a three bedroom house in Roxboro Park.

Yep.

And then a three bedroom house in Strathpine, Queensland.

Okay. So in couple in Brisbane. So you're a geographically agnostic investor, which is good to see. You're following the market. And how did you do your research about where to buy for your last property?

Yeah, So I also spoke to someone who is an investor. He's been there, done that and he, he's recommended me to buy in Queensland with the good infrastructure development.

Yep.

So there's a university being built not very far from, from Strathpine.

Yep.

So the, the one I bought recently, I wanted to get more yield. So in order to basically buy something that doesn't cost me in terms of cash flow.

Yeah. And you know what's really, really nice about what you've done as well is that you've got, I think, you know, the properties Roxburgh park and Strathblyne, you'll find that three bedroom houses are the typical type of properties and you've got that cash flow component. So buying in Melbourne, units do a bit better than houses, but you're around 2.4, 2.8% yield. We're up in Brisbane, you can get the 4 plus percent, 4 to 6% yield and obviously with renovation and improving the property a little bit better, you can obviously push the rent up as well. So you're starting following some of those things that are in the location master class about, you know, looking at those things, the infrastructure and the population and where people want to be. And you know, personally, I've got of my properties, five of them are next to universities and hospitals because I know you can't move those quickly and there's always going to be some need for, for the population to be there. That's great. And so is there any question that you have that I can help you with?

Well, not on this occasion. I thought I just, I'm new to this and. Yeah, next time I'll prepare some list of questions or send you an email.

Perfect. Well, look, we do these calls 1230 on the last Thursday of the month, regardless of where we are. So I'm in Estonia at the moment and John's in his own little hub back in the studio in Melbourne. But you know, the really interesting thing about this is that we've been doing these how long for John? Four years now. And of the calls that we've been doing every month we've recorded, they're usually an hour and a half to two hours. So you find, you know, you can find obviously some of the past calls as well and listen to them. So we get a lot of people saying who've listened to the podcast, they've gone, I want more who've actually gone back and listened to the calls. Because you know what I found when I started my investment property journey of educating myself back in 2000 was that there's not a lot of new concepts and there's a lot of the same problems that people have as well. So I encourage you to go back and listen to those calls so you have access to the, your property success club platform and you'll be able to get those calls in there and have a listen to them. But yeah, it's, it's, it's great to have you on board. And as you go through the course, please, you know, if you have any problems at all, jump into the club Facebook page and ask questions because there's so many people who are in there who are just amazing and very supportive. And John and I are in there every couple of days too. So any questions you have, don't let it become a roadblock. Jump in there.

Thank you.

All the best. Waiting for John now to say something. I think I've lost him. Well, we can keep talking. John, are you there?

Yes, I can hear you. I'm back, I think.

Yep.

Okay. Sorry about that. We lost contact altogether. So where are we up to, Jane? Are we all done?

Yeah, yeah, pretty much. I was just saying welcome and go back and listen to the other calls. They're in the platform, the youe Property Success Club. The past calls.

Fantastic. And good on you for jumping on the call straight away too. That's awesome. Awesome. All right. So can you hear me okay, Jane?

Absolutely. See how easy it is guys? You don't have to have a question. Just come and say hi and tell us what you're up to. And we've had people over the years that we've been tracking for years, haven't we John, that have been doing, sharing their projects with us both in the club and on these calls.

So gold, we get to know people very well. Now, Jane, let me just try and share my screen because I know we skipped over some show and tell of yours before that I think we should bring up which is very important. So let me just share my screen again. I'll just scroll it down.

So this is part of my bribe basically for my 10 year old son who thinks that he's going to be doing yoga every day and is a bit worried about coming to a school holiday program across the other side of the world. The agreement was that he got to see Euro Disney essentially.

Okay.

And so here's a bit of a selfie tour of James of Euro Disney.

Let's see if I can zoom in a bit maybe.

Do you want to make it solo and then that might just fill the whole screen?

Yeah, I think I've got it solo at the moment. All right, let's start. I'll go up.

Okay. So this is it turns out when you. You go to. So Max was wanting is reading a book at the moment called the Londoner Eye Mystery. So we had to do the London Eye was the only thing we're going to do in London. Caught up with my best friend Maureen and a Couple of clients that I have over there had dinner with which is lovely and so we did the London Eye. So we got to see the London Eye. The, you know that was built, it.

Was built for the millennium celebrations and it was only supposed to be temporary. They were going to have it there for a year or two and take it down again.

It's insane. I mean anyone who's going there get the fast track ticket. I think people were waiting up for like two hours and we were in in five minutes so it was worth a couple of extra pounds. So then you've got the Tower Bridge to the right of the fireworks. So we walked across Tower Bridge and anyone who's kind of. I don't share often but I have had foot and hip problems. So this is my mind over matter days where we were doing 10,000 plus steps. So the first day we arrived Thursday night really late and we were out at 8:30 into the London Eye. We followed up with a trip to Harrods toy store. Having just seen the Peter Rabbit movie and it was full of. It's got a lot of adult humor in the Peter Rabbit movie, don't discredit it. And had a lovely time at Harrods, turned and we went and saw Thriller on West End. So when saw the Michael Jackson show and finished the evening at 10 o' clock at Hemeli's Toy store again. So we did a full day. The first day I can recommend Jeteze as the homeopathic jet lag free companion to your travels. And then the next day we hit the ground straight away. We walked across Tower Bridge, went to the Tower of London and here's a little hint for you. Oh beautiful crown jewels. But the White Tower, unlike when I visited 10 years ago or 15 years ago, once you start going up, you can't come down. So it was a bit of a hike all the way up, but it was full of armory which entertained a 10 year old boy and gruesome stuff. So. So we did that and that was fantastic.

Did they say the Tower that all the Americans think that Tower Bridge is London Bridge.

Oh really? Well you lived there for so many years, didn't you?

Yeah, yeah, but I remember them telling when I first arrived there, I remember doing the same tour at the Tower and they say now Americans that's not London Bridge, that's. That's Tower Bridge.

Well and when we did the hop on hop off bus, you could, you know, there's a couple of videos I took of this hilariously dry travel assistant. I don't Know what they call them guide. But yeah, so that was good. So basically did London. We had two days. So it was just like a Will stop tour. Then there were the agreement of going to Disneyland. So we jumped on the Eurostar on Sunday. We headed straight to Disneyland, which you can get direct. Got in at 5pm and spent till midnight there. Saw the fireworks.

Now midnight, wow. I thought you must have had a big day. Obviously you're watching fireworks in the. At night. So.

Because the sun goes down at 11, right? So that identifies 11. So we were. We hit the ground running. It did another 10,000 steps. The interesting thing about Disney and why I have an affinity to Disney is that I just love the complete experience that Disneyland gives. You know, coming to our community and. And we're going to look after you and give you, you know, the greatest experience possible, Happiest place on Earth, which is something that we try to emulate. John and I went to University of Dis. University on and did a customer service course. And just the insane amount of level of customer service that goes into. I think there's 140 marketing points that influence you to be excited about going to Disneyland before you actually get to the main gates. And just some of the small things that Walt Disney reading books on him. He got Kodak Kodak online working with him back in the 60s and said, what do I have to paint Main street to get the best color contrast. So when people who can't take photos go home and show their photos, their friends, their friends go, I want to go there. They said red and green. So hence Main street is painted red and green. So just incredible. So yes, did that. And then Disneyland. Apparently you have to book weeks in advance to get photos with any of the characters, which I missed. So you can see me bombing some of the photos to the left. There's someone in the background. I think it's Goofy. And then didn't get the tickets to get up to the top of the Eiffel Tower. We had six hours. We arrived at lunchtime on Tuesday and had six hours again to do Paris. So hop on, hop off bus and Eiffel Tower. So climbed the Arc de Triomphe, which I knew I could probably get up with my foot. I didn't know how I was going to get down. But there was a lift.

Isn't there a lift?

Only up, only down. So you have to climb up all those. Yeah. So I did that. Made it to the top of the. Didn't think I was ever going to get down again. So there you Go. That's my whistle stop tour of Europe. I know you should spend more time in London and Paris than a couple of hours. But hey, I've got 14 days in Estonia, so I'll share some of my Estonian experiences with you.

That's awesome. And that's. Yep.

I probably. Yep. The loop. So that was, it was Tuesday. My son's one request was the London Eye and to see the Mona Lisa. But the Louvre is closed on Tuesdays.

Ah, okay.

So. And I was saying, this is culture, culture, culture day. Yeah, we've done Disneyland. We've got to see a church, we got to see a gallery. And he's like, why don't we just see the building? So we did Arc de Triomphe and Eiffel Tower. So we did architecture.

Awesome. Well, he'd be having a great experience, wouldn't he? He won't forget this.

I know. Well, it's, I'm up at 5, 5 o' clock this morning to do this call, so hopefully he's still asleep. He might come rumbling out here in a moment. But yeah, yeah, fantastic.

All right. That's awesome. Okay, Scott, another question here from Una. And Una says, planning on selling my principal place of residence or own home, should we spend money in painting the color of the tiles and cupboards in the external laundry room? We would need to pay professionals since we're too busy to do it ourselves. And I think it would cost 3 to $4,000. Room is very messy in photos. She says, can't see the photos.

But it's an interesting question, isn't it? If you had said that you were doing the kitchen, like one of the kitchen, bathroom, big areas that are kind of decision making areas. I think if you use that phrase for buyers, first impressions count and then it's the kitchen and bathrooms that really make a difference. And I think if you were really concentrating on those areas and you saw that there was an, an absolute differential between what's on the market at the moment and your property, and it became a buyer's objection, then I would say, gee, you know, dropping three to four grand on this is, you know, not a problem. So to a lesser degree, if I look at the laundry area, which is not the thing that's going to sell the property by spending 3 to $4,000 on that, I really think you probably, unless it's really bad and there's objections that people are going to make. So if we're talking that the rest of the house is looking pretty fit and then you get into laundry and you go Oh, I have to do so much work here then, you know, this is something that I don't want to do. Like we're talking about maybe the old copper pot rather than a washing machine, I don't know. But yeah, and I've seen a lot of properties with those still. But you know, I just think if you're going to spend that money, I would be looking around in those main areas that the even staging first impressions. Kitchen, bathroom and spending my money there first and foremost.

Yeah, agree too. Yeah. And it's the, the agents. I mean the best way to do that is literally if you've got access to a tool like RP data is to go through and just look at all the, the properties in the, you know, let's say in a radius. A 500 meter radius is a good place to start and just see what they're at the higher level, what they look like and what standard you need to renovate up to so you can do that yourself. The other thing is just to get, although you're going to get hassled for months, weeks, years afterwards, get agents through and get their appraisal because they're seeing the market all the time and they'll, they can tell you, I mean some of them are going to tell you anything just trying to get the listing, but hopefully you'll find a few good ones and they'll give you some good information about, you know, if they think it's worth spending money on. And if you did spend that money on, what, what value do they think you would add?

Absolutely. And I know, I mean we, we did a renovation, John, on a property that the work was done to improve the laundry and the family who bought the property had a son in a wheelchair and they pretty much went, oh no, this is going to be a separate bathroom. And they ripped it all out. So sometimes when you're selling a property as well, what your vision of what people need and what they actually need is completely different.

Yeah. And it's normally simpler is better. They call. Yeah. Occam's razor. The simplest solution is normally the best, which in our case here is normally paint and staging. If you can paint and stage, that will probably give you the best bang for your buck. Unless there's any. Unless there's other objections, as Jane said. There's no more questions coming in. Oh, hang on, here we go. This is room Lee. She says, hi Jane. Just wanted to get your thoughts on renovating over a new build where you can get the tax benefits from the depreciation.

Yeah, It's a good question. And there's obviously a lot of changes that have been made in the depreciation and what you can claim when buying a property. Now going forward, you can't claim the past works, but if you own a property and then you can claim that, you know, the past works, the things that have been done. So there is some differences. I'm not an expert in it. I refer to Tyrone, our mate at Washington Brown, for those kind of questions. And I've been watching one of his video sequences at the moment. He has some really great information. I might try to get a link of him to put in here to share with you. But there's, I guess the thing is around property investment is that a lot of people confuse, you know, buying entities and buying strategies and cash flow strategies with what I would consider the fundamentals of good property investment for the long term. And often this brings up the questions about, you know, is positive cash flow or negative gearing better? You know, is, you know, the multi house, granny flat NRAs buying in the US better than just, you know, buying what mums and dads want to live in? You know, so there's all these conversations that come up and I think depreciation adds just a little bit of a factor. Now I have an 1860 built property that I did a renovation on and I'm still claiming depreciation of a couple thousand dollars a year on that. And I did that renovation, you know, 17 years ago. So, you know, there's, there's some benefits for it, but for two grand or three grand or five grand and even for these new builds, you know, I spoke to. Oh gosh, I can see his face. I want to call him Ben. It's not Ben from bmt. Brad. I spoke to Brad from BMT once. He went through and did a depreciation schedule for one of the properties in the block. And you know, they were talking about the tens of thousands of dollars on the depreciation on these million, you know, $2 million builds that they had done. But when he, he did the actual analysis of what the property was worth, it was actually probably worth about 2 to $300,000 less than what they had bought it for as well. And so I think there's the problem where people actually buying based on a tax strategy of making a little bit of money back, you're actually compromising often your capital growth strategy. So, you know, growth is, you know, the basic fundamentals where the population want to be near the infrastructure, near work, you know, near their community 70% of people, typically owner occupiers, then in Australia, 30% renters. So it's being in an area where the renters want to live and understanding what suburbs have the abilities to have that, that others don't. And obviously in location last class you're learning all of that. So buying new over old. What really concerns me about this and it's a similar question about buying a self managed super fund is that as we've seen with the depreciation change in the budget, it happens like that and all of a sudden your strategy that you came up with has gone out the window based on a political economic decision and it's superannuation. I'm reading updates on the changes. Self managed super funds and there's about monthly a change comes through because they're just perfecting it and then you've got the, the states overlaying, you know, what they think is important with you know, grants and things. So I just think, you know, depending on something like that, I'd hate to think that people had bought a property based on depreciation and then all of a sudden, you know, they can't claim the depreciation that they thought they could do with, you know, renovation based on these changes. So I would say it's a secondary, third, fourth decision maker. It's around where's the best place that you can put your money. And it may not be around the corner or within 15Ks of you lived. It might actually be in a different situation state. And once you have made that decision about where the best place you can put your money, it is around, you know, what the strategy you have and then you look at the cash flow. So we talked a little bit earlier about going to Brisbane for some of the cash flow, but also having a growth property that would potentially have a higher growth in your portfolio. So you've got growth and cash flow that together are actually going to give you a whole portfolio, you know, minimize the cash cost to you but also maximize the growth that you can have.

Yeah, great. The other thing, when you think about those new builds, where they're going to be, they're generally going to be on the outskirts, aren't they? In those Green Acre places where we know don't have sustained growth, they have a peak of growth while the development's on and then they peter off, then you get the next lot go on the outside of those and they compete and out compete those properties. And so it's generally not a good capital growth story. And then if you think about it so there is, you know, some new builds, infill development where you'd knock a house over and build new. But it'd be hard to put that side by side, for instance with a development strategy and make it stack up like it's very hard to build one house. There's situations where, because we've looked at doing this years ago and the situations where it does work, like if you've got a particular type of house for a particular demographic, like for instance French provincials for the Asian market in the school districts, the high end private school districts of Melbourne, that was a case where that can work. But even that is a high risk strategy because if something changes with the foreign investment rules or anything like that, that market council. Yeah, that's right. So it's hard to see whether it's a new build that actually is not risky.

And we talked interviewed Ian Urgart recently. Small is the new big. And some of that kind of. Yeah, different, exactly. So the different type of builds as well. People are looking at innovating a little bit and council are changing their opinions and how things can happen. And obviously that strategy, you wouldn't do that strategy or any strategy like that based on. I'm going to get a few thousand dollars back every year from tax. You know, you have to have a bigger picture.

So that's the thing, that's a bonus afterwards.

Yeah, yeah, I might. You're going to have to write down all these links on promising people, John. But. So we got Washington Brown and well.

The thing we can do is we can stick them in the, in the chat after we've done. Yeah, so that's easy.

I just can't remember them being so early in the morning here. But no worries, Ian Urgad. I've got a little ebook about what he's doing as well that I might just put in the chat too.

Great. Okay, let me just check here.

We don't know Ergate.

Yeah, I know, I do that too. All right, I'm just checking this. So Vitaly's got a question. Jane, do you have a particular criteria for minimum land component when buying property? Do you tend to look to houses rather than units when buying for capital growth? Also potentially greater leeway to add value?

Yeah, it's a good, it's a good question. The. I know, you know, I follow a lot of obviously property experts. I want to see, you know what they are thinking and obviously share with you their thoughts rather than making them my own thoughts but and curating what they're saying and I've seen some experts talk about, you know, you have to have a certain percentage of land versus build to generate growth. And I haven't actually ever seen anyone stack up that with scientific research and being the engineering me, unless I can actually prove something with scientific background, it doesn't stack for me. So you know, if someone could show me that there was a correlation between growth and the percentage that you would have between house and land then I'd be very happy to take it on. As yet I haven't seen it. Having said that, with the generalist view, most people in Australia live in houses. So when we talk about low risk property investing I'm always looking about minimizing my risk. So you see in the location masterclass often we talk about, you know, look at the number of sales or look at the vacancy rate or look at the population demand and the type of property because we're minimizing your risk all the time to making sure the maximum amount of people are going to want your property. So I would, I would, I personally like houses but I have had two units in my portfolio and I've got one townhouse in my portfolio. And the reason behind that is that they're typical for the area. So you know, you have a look at, you know, I had a two bedroom unit in Bondi Bay so you know, views the beach. We renovated, spent you know, three months over winter when no one wants to rent, renovating the property, enjoyed that experience and then moved out. But it was a typical property for the area and it went up in value really well. You know, the other unit that we had, you know, we bought it for 20. What do we buy? No, no we didn't, we bought it. 320,000. It was first listed something around 420. Did a quick renovation on it. It's worth well over 900,000 now, you know, 15 years later. So it's, it's around what is typical for the area. I wouldn't go in and go, I just want to buy units. And now I'm in this suburb that I've come up with using the dot map and all these things and I'm going to buy a unit because if it's not the typical property then it's not the right thing to do because it's, it's going to be very difficult for you. And I remember talking to a lady who'd bought a property, I think it was a, she was in Box Hill, she said I can't work out why it's always when the tenant moves out, it's months before I can get a vacancy again. And she had a one bedroom unit in an area that had like 10% units at that stage, 10% units and no one wanted to live in one bedroom and it was just not the typical property. But she found a good area. She's like, this area is going to go off. I can't afford a house, let me buy a unit. And that's a big mistake. So Vitaly, it's a really good question. I personally think that land goes up in value and obviously the property depreciates. So I want to have a land component but I don't want to have a thousand square meter block in an area where the typical properties are 500 square meters unless I was going to subdivide. And that was my whole strategy because it's atypical again and it just means that if I did have to come to, to sell it, it could be a problem. So I'm looking what the typical size block is and I'm looking at what the typical property is and I want to look at the demographics and the typical number of renters and that way you can really minimize the cost that you have. So yeah, so it's a good question and I think it's one of those questions that people kind of get to is like house or unit? I can afford a unit that's closer to town if it's in a suburb that is a typical sub, the property is a unit, it's the typical property for that suburb and the subur, you know, meets all of the kind of criteria being near the population and infrastructure and all those really good things. Great. But, and just a little tip on dot mapping. I wouldn't dot map for units personally, I just, I think. And there's a couple of reasons behind that. The dot map itself is showing that ripple effect and the majority of properties are houses and we're looking at over 10 years. But what you found in the last 10 years is councils have changed their policies and allowed units and development. So all of a sudden some councils, you're going to see all these units and they're going to pop up and they're not going to pop up in a ripple effect. So when you start dot mapping something like units, it's not going to give you the pattern that we're trying to say. So dot maps are just the houses. But having said that, having said that, if you're looking at where the growth has been, often what happens is the developers follow. So you're actually going to see the units come behind. So if you've seen some amazing growth in some areas, then have a look to them and see if there's developments going on there. I wouldn't be buying new developments. Be looking at established properties without lifts, etc. Three to four stories high.

Perfect. All right, so type in your questions, guys, because we haven't got too long to go. And also, Sue, I know you're waiting there in the lobby with your camera, so it's been blocked off, your camera. So I assume you don't want to be on. But if you do want to be on, just give us a wave and we'll pop you up and take a question from your camera in a moment. If not, just keep on doing what you're doing.

All right, let's take John. I just want. Oh, have you got a question there?

Yeah. Okay, we can take yours first, though. You go ahead.

I haven't got a question, but I just wanted to share the competition that we ran.

Oh, yeah, yeah, go on, tell us about the competition.

Yeah, you tell us about the competition. I've been talking too much.

Okay, so we were in it. We ran a competition. Now you can ask me to. There's no way I'm going to remember all the prizes. There was too many for a start. So we've been running a competition, 50 odd thousand dollars worth of prizes for the done for you. Or what we call internally, which is a terrible way to market a product. But the done done for you service.

Done for you.

The done for you service is basically us going, doing the research on your behalf. If you don't want to or you can't, we go and do the research for you, all the suburb research and hand you three to five suburbs and you go away and find the property. The done done for you service is us doing that and then going and hiring a buyer's agent in one of those areas, filtering all those properties and handing you a property instead of a list of suburbs. And that's valued at nearly $25,000. And we had a lucky winner of that, Jane, whose name was Leah.

You know what, what's so exciting about Leah is that. And it was so nice to see so many people pop up their names. That leaderboard was changing so quickly. And Rhonda, my gosh, she was just insane. She was all over the place and promoting.

Yeah.

And she, she. Ronda Lee. Sorry. And she, she won the leaderboard. The number one on the leaderboard, but just didn't have that. The same answer as I did as the area that I thought was going to have the most growth and that next five years. But Leah did and Leah and her husband had been work, had been thinking about investing for the last three years and had considered, you know. Yep, got to get in now. They went and got their borrowing capacities done, got all kind of ready and then got a bit fatigued about the whole experience and there's like, it's too hard to find and so it was really lovely that we can actually get her the entire experience of actually, you know, we, we've already had our implementation session. We know exactly what their borrowing capacity to use and where they want to invest and we're at the stage now that as soon as that we push the button we will start the research into. We'll be doing the dot map on her behalf, buying all the reports and going through and, and then engaging a buyer's agent on her behalf and concierge that experience. So.

And you're doing the finance too. So it's the whole, it's one stop shop.

Yeah. So it's really, it's really exciting. So that's, that's exciting. But yeah, as you said John, the amount of it was amazing. We were obviously giving away that $25,000 service and then I rang up a couple of mates and went, oh, you know, we're having this competition, would you mind donating something? And we had, you know, Patrick from the ultimate property investment calculator which I personally use and love. We've got your investment property magazine. We've got.

Yep.

We've got Tyrone from Washington Brown who gave the depreciation schedules and the books. We got Terry Riders report. We've got Jane Ells Bennett who's doing a renovation consultation. And then what your bonds are now your bonds are platform. That's the new platform for the property.

The uber of property managers.

3.9% bringing all your property management costs down as well. I mean I'd be rather, rather than trying to chase depreciation and saving a few thousand dollars there. I'd rather, you know, get my portfolio and something else. It's doing something like that. So amazing. And the fact that we can actually help Lear out and put something in place for her is just so exciting.

Yep, yep.

So we might, we might actually even case study it John, and follow that experience.

Yeah, that's right. It'll be, it'll be really good. Now which, which for everyone that perhaps didn't catch the video, which capital did you choose and why? Because the question was which capital do you think will grow the most over the next five years. And there was the all the capitals and tick the choice and it had to be the same as Jane's, which he wrote on a bit of paper. So which capital did you choose?

I chose Melbourne and I'm not being parochial here as if you've been part of the webinar that was part of that competition. As I say, I don't have to be the expert, I just have to know the experts so that I can actually find out what they think. So it's the same as the location master to class get all the experts reports and make them do the work. I mean if these banks and things have like you know, 50 economists trying to work out what's happening to interest rates in the property market, I'm happy to use their research rather than mine. But as long as I don't just use theirs, I use everyone. So we talk to Peter Kalizas, we talk to. Oh gosh, who did we talk to? Bryce. We talked to Louis from Christopher.

Yep.

We spoke to so many different experts and asked them about their opinions. We spoke to Josh Masters and we spoke to Tyron. So we talked about you know what, where people and Peter Warchant. So anyhow called in all the mates, asked them what they thought. You know, there was people, there was a cross pollination, you know, there's some people talking Adelaide and Melbourne and Brisbane. Sydney didn't really come up. Hobart seen as a bit of a blip at the moment from a growth point of view, you know, Perth is a long term wait. So I looked at that and I mean I definitely think that we're going to have. Brisbane's going to have some superior growth in the next two to three years compared to what we see as the main markets of Sydney and Melbourne. But just that whole population push that we've got in Melbourne, it's going to be the biggest capital city in a number of years time. You know we've got 1800 people moving there internally. Majority internal migration rather than external migration which Sydney is a. 1500, 1500 people a week moving there. But it's mainly external. So any changes in you know, foreign visas, it could make a big change there and just the affordability. But I, I just see that, you know we will probably have two to three years of Brisbane and then three, four, five years, three, four, five, Melbourne will come back and I think we've seen like almost a three to four year cycle. So I did the numbers, averaged them out of what those growth predictions were and Melbourne picked the post. So it was scientific. Scientific. It wasn't just a guesstimate. Yeah. Which way is the wind blowing today?

And Leah, Leah picked successfully. And of that top five, I think from memory, she was the only one that got the city right in the top five.

Yep, that's what.

Yeah, she was number one.

Yeah, she five. Yeah, she was number five. So the others had Brisbane and Perth. Brisbane and Sydney for memory.

Yeah, that's right.

You know, she said the other thing was number six on the list. His name escapes me right at this moment. He only found out about the competition a day beforehand and he put it on Facebook and he spent $20 to boost it and he won over, I think he won over 1500 dollars worth of prizes on the leaderboard. So he was very excited. He's a good investment.

Not, not a bad return on investment. Yep. Okay, so let's see if we can show this. So what we'll do is we'll go to split screen and then I'll bring it up. All right. Now this is from Virginia. Now there's a few of these. We're just going to work our way through them. I have a decision dilemma. We have been slowly renovating our principal place of residence in a small two bedroom unit in Sydney valued at about a million dollars. All right, now let me scroll up because I've got to jump one here.

I can't see your screen.

All right. We don't know whether to keep it as an investment property or sell it. We're pricing a renovation kitchen. The dilemma is how much to spend on the kitchen. And then the next one is this one. I have a quote for a custom kitchen, about $12,000. For cabinets, this is fully custom made which may need because of indecorating the laundry. And then that's the last one. The question is flat back kitchens will cost around $6,000. For cabinets, the custom made one will cost $6,000 more. Will I be over capitalizing if I go for a custom kitchen? It looks considerably better than a flat pack product and would allow me my washing machine to look integrated as well as other features.

The thing is we're talking about a million dollar property here, but we are talking Sydney. So it doesn't necessarily have to be the flashback part of town as well. So I once again I'd start with looking at what the comparable sales are of the renovated properties and what the fixtures and fittings and the fit outs look out for those properties because you know, we're talking about $12,000. And then we've got plumbing and Tiling and white goods, etc. You're going to hit 20 grand pretty quick for that kitchen. But 20 grand as part of 2 million, we're talking like a 2% cost, you know, of, of what the property is. So, and it is one of those, you know, three places. The first impressions, the kitchen and bathroom that are going to make buyers want to buy. And, and, and this is what I love about all of the things that we teach is that clever people like you have worked out that you can apply these teachings to your own principal place of residence as well and use investment strategies in buying your next property and doing, you know, dot maps and things and finding the suburbs that are near to each other. Which one was an outperform the others. So congratulations first and foremost for seeing this as a technique to making money. And, and I think the, the thing is that the kitchen in itself is going to be a selling strategy. Just work out how much you need to spend on it and it'll be around those comparable sales of the properties that are in your, your suburbs. So the other two bedroom units that are selling now, I'm going to throw to you, John, because I know all flat pack kitchens are not the same and the experience that you've got here about the flat pack looking inferior in actual fact doesn't have to be the case.

No, that's right. There are some pretty good flat packs and kitchens and particularly imported kitchens that come out from China. They come as flat packs. There's manufacturers that actually assemble them and you can order these to spec.

Custom sizes.

Yeah, custom sizes. So what I'll try and do is pull up a link and just stick it in the chat after we've done here. But, and there's a lead time, so you're going to lose. I think it's probably about three to four weeks. And then they ship them out flat pack and then they put them together in the factory and deliver them, you know, on the back of a truck kind of hole. And which means they're pretty fast to put together. They're like a. Typically what a cabinet maker would do is build them in the warehouse, stick them on the truck, bring them to the job. So they come, they come in the door the same way. I guess the thing.

Measure them yourself. Do you measure that yourself and tell them what the measurements are or do they have someone.

Yeah, unless you can get. Yes you do. So you can give them a plan. But even like if it's a new build, like in the case of us doing developments, we give them the Plan. But then yeah, if you can, if it's a renovation, I would try and measure myself rather than, you know, the plan can be what, what they tend to do is they give a, a 19 mil clearance on either end and then what. And the reason that is, is that's the thickness of a, a sheet of mine. So you can stick that in on its side and that, that fills that little gap and it just looks like the edge of the cabinet. So that's how they do it just to give you a little bit of leeway. So that's an option and they can certainly. Because it sounds like you're trying to incorporate the laundry into the kitchen and that seems to be the reason you're going custom. Our custom kitchens for the developments were I think around 16,000 for cabinetry, high end development, which really hurt. Yeah, I'd never paid more than, you know, 10,000 for everything with, with appliances and all that kind of thing. And typically what I try and do, particularly within renovations but as well with the developments is custom nothing if I can get away with. I try not to. I'll build a room around a kitchen rather or move a wall rather than go custom a lot of the time just because it is actually more cost effective. If you. Now that doesn't make any sense. If you've already got an existing wall, you don't go knocking down walls and obviously moving them for that to work. But if you've got an open space and you can put for instance like a little butt wall as you call them, so just a little nib wall and then you know, make your kitchen in that space, then that's a really good way of switching from custom to pre made. And I do the similar things with vanities. Use little nib walls in bathrooms, for instance. So I can use pre made vanities rather than having the vanities made, which traditionally renovators or developers do by the cabinet maker and then they put a top on them. So my option would always be flat pack if you go with just a plain. And again if you're, if you're just thinking purely what is going to meet the market. So as Jane said about, you know, finding out what you're renovating up to and then just thinking about what, what's going to appeal to the broadest possible taste. Now often that's just a neutral color scheme. So if you're using a flat pack, I just personally go. And this is still working at the moment. It's worked for basically the last 10 years. And I always keep an eye out to make sure if I don't want to fall behind at any point. But. And this, this is a gloss white finish, just a square finish. And the handles will change because the handles tend to trend a lot quicker. But using that and whatever the bench tops are in that area that are again, what you're renovating up to, that might be a Caesar stone, a thinner Caesar stone, a thicker Caesar stone, a light colored, like an osprey, or it might be a. A darker stone or a marble look, depending on what that area wants, because it's always different. And yeah, that's, that's the way I try and approach it. If you can avoid going custom, go custom. But first of all, just make sure that it's worth doing in the first place and there's not a shortcut that you could do and get 80% of the result with, you know, 20% of the cost. That is painting and handles. Have you got a son that's arose?

No, no. But I was just thinking I saw something in this kitchen here that I thought was really cool. I might do a little demo and show you something. One of the things about handles that John mentioned is you can change the handles on a kitchen and really make it look better. So one of the things I do is I always make sure I've got the screw points are at the typical distance so I can just put another handle on so you don't have to. Okay. All right. Walking through the unit. But how cool is this? Right, let's just have a little look here. So this is the very.

We'll just keep on going all afternoon.

Jay, this is a very small little kitchen. Right. So it's a little kitchen, but look what they've done in here. This is where you put your. Your drying rack.

Oh, there you go.

So I've never seen anything like that before. So here's a drying rack. And it over moves, but drying rack. And it's like it drops down into a. Into a little thing. So I thought, oh, that's kind of cool. Never seen that in a kitchen before. Pretty cool. And because there's a small kitchen, small space. You can see the rocky road there from Marks and Spencer's. That. Yeah, I thought that was.

It's amazing in, in Europe how they use their space. Like they utilize every single little nook and cranny, toilets on the staircases, all sorts.

Yeah.

And the laundry is nearly always in the kitchen. And then. Yes. So they call them the European laundries.

Cool.

All right, so we've got another one here From. Let's just see anyone there. Let's see if we can do this. Okay. This one's from Oona. When people put the house on the market, where do they store all the extra furniture and stuff which they don't want around during the inspections?

Well, good point in actually identifying the fact that decluttering is probably one of the best things that you can do. So staging is obviously fabulous, but decluttering and just taking all that extra stuff out is amazing. I remember I bought a unit at one stage and everyone was walking in the second bedroom going, oh my God, this is so small. But it was actually a bunk bed and was a double bunk bed at the bottom and a single at the top and it took up the whole room and it was actually big enough for a double bed by itself. But it just, the perception was it wasn't.

Yeah.

So where do people.

That's what you pay for with that expertise. I was just going to just make a comment. There is. You're not the best judge of that, of how your property presents. So listen to advice, please. Because those guys, they know I've worked with them so much and they know exactly what size bed to put in a space to optimize the look and feel of that space. And that perception is huge. So you don't. I think you miss the point by trying to do that yourself or perhaps buy the furniture and that kind of thing. You're buying the expertise, which is really important.

Absolutely. And look, where do you get some storage? It's basically storage, large storage facilities. If it's going to be a long period of time, if it's just selling your house, a six week campaign kind of stuff and then you're buying again, you probably have three months of storage that is required. So, you know, I'd be yellow paging basically the storage people. But if you are going to be doing it for a longer period of time. I've had clients who've actually bought old shipping containers and filled them up on the back of a truck and then had, you know, gone and dumped them on a friend's farm somewhere for a year or two. So. But obviously there's storage places where you have shipping containers and that, you know, we'll store them as well.

But we knew someone, she came to a couple of our meetup, one of our workshops staying, we're running them in Melbourne. She actually bought a truck, like a, you know, like with a big box on the back. Like you would see a freezer truck, but it wasn't a freezer. Truck, but it was like a furniture truck and she bought it for a storage and then she sold it afterwards for the same price, so. And she just parked it at the front, blocking the sun to all the houses and filled it full of.

Great. That's a great idea. Yeah. So you can be quite innovative.

Yeah, very good. All right, I think last chance guys, if you want to. Now, Sue, I didn't get the way from you, so I'm assuming you.

Sue came on chat and she said she was happy not to talk. I don't know if she wants. I don't know if she wants to talk and just not be able to type in.

You can type in a chat, type in something if you've got something there. But we are going to wrap up shortly, so any last questions, pop them in. What's. What's happening now? Jane, how long are you over there for? And.

Sure.

Well, when are you coming home? Are you coming home?

Never fear. Never fear. I'm still working. So I've worked out from 5am to 9am every day so I can, I can fit in face to face strategy calls and deal review calls and obviously webinars and the like. So we've been. We did webinars, we had a webinar last night. We've got this now. We've got another session coming up after this as well. So never for you. I'm on track and I'm on email, but officially I'm back on the 15th of July.

Okay.

So it's gonna be a 14 day immersive starting today.

So I got that long flight back. How are you getting home?

It's 33 hours.

Yeah.

So I fly to Stockholm and then fly to Dubai and Singapore and Melbourne. So arrived 6am on the Sunday morning. Hopefully jet lag free because my son's off to school the next day.

And how did he go on the flight over? Was he good on the flight over?

Oh my gosh. Yeah. I'm not a. I was really. You know, my husband said, you go if you're going to London for 14 days. I'd come with you, but staying here, I think I'll give it a mess. I'll stay at home, look after budgies. So he's at home looking after the budgies and. But yeah, I was a bit worried that the first flying experience would be unproductive. I know when I did my first trip, I got over, I think we got over Darwin and I said to my best friend, oh my God, I'm breathing everyone's air. How can I get off and she's like, oh, my gosh, 16 hours. So. But yeah, so he was great, which is fabulous. And he's. He's been a bit of a team player. I was hoping that he was going to vlog his experience because the children's workshop, they're teaching them, oh, yoga, meditation, but resilience, courage, how to be a global citizen, how to talk through worries and be. Be someone who can stop bullies and be confident about being able to state your message. They've got. One of the key public speaking people who are coming to teach us is they're going to teach the kids. Jim Quick, who's probably the world's expert in speed reading, is then going to go and do a session and teach the kids speed reading and comprehension. So there's a lot of correlations, but they've brought in the number one.

They do that for the kids. That's pretty.

Yeah. They brought in this lady from. Who's a conscious parenting expert. So I've got a massive fail, I think there. But she's coming in, she's running the program. So they've got 6 to 12 year olds and then 13 to 17 year olds. In the afternoon they're off experiencing Tallinn. They're doing tower tours and museums. And so apparently around the corner there's a museum with a submarine. It's suspended in the air that you can walk through. So the kids are going to have an incredible experience as well. So, I mean, I'm encouraging to get his own little vlog going. But your success club, that's the link that I forgot. John.

I'll try and find that flat pack mob too. They're only in Melbourne and Sydney that I know this particular mob, but there'll be other places like them.

And Washington Brown. I'll get that link. And Ian Agarte, that's the four things we're going to remember.

Okay, well, that's it, Jane. I think we've got. We've run out of comments. So that's our. That's our sign to head off anything. Any famous last words?

I guess my only thoughts would be, you know, it's been wonderful connecting with people in the community and meeting new people who are coming into the community all the time as well. Please, you know, feel, feel welcome, ask your questions. There's no such thing as a stupid question. We all started in a position where we didn't know what LVR meant or didn't know some of the terminology. So there is. You can search the club. I think there's a whole terminology sheet document that was started about four years ago. That's there. But introduce yourself and let us know what you're doing. Let us know how we can help you. There's amazing community. There's people all around Australia, from, you know, Karafa down to Esperance to, gosh, you know, Mount Isa. A lot of people in New Zealand do this part of the community and have done the renovation course as well. And, oh, there's another headphone. So, yeah, there's so many people there. And yeah, it's pretty exciting that we have the opportunity to help you out and be part of it. So get involved, be part of the community. And, yeah, we'll go from there.

Great. See you next time.

Bye. Here's to your property success from Estonia.