Your Property Success Mentor March 30 03 2017

So here we are, the very first call of third call, 2017, end of March. And as I said, your Property Success Club people welcome. And it is a little bit different this evening, so we're going to have a bit of fun, we want a bit of interaction and as always, we are going to do as much as we can in answering any of those burning Q and A questions that you have in the next two hours or so. Now, these calls generally take place on the last Thursday of every month and of course you will receive email reminders when they're approaching so you don't miss out. And we do record these calls and we will post them in your normal forums about 48 hours later. And if you can't make a call, just a reminder, there is a phone number you can call. John, did anyone leave us a message?

No. Been standing beside that phone all week. Again, nothing.

1 376,170 19. And of course you can email us at questionsourpropertysuccess.com but before we get into the questions, I should introduce the person sitting next to me. It is the co creator of the Ultimate Guide to Renovation and your Property Success Club and your Property Success podcast. It is John Hubbard.

Hello. I was trying to think what the third one might be. Oh, yeah.

Oh, we've done so many things together.

Yep, I'll take that.

So, John, big month. What have you been up to?

Well, it's interesting, the developments are finished for me now, but I still seem to be just as busy, so I don't know what's going on there, but mainly organizing the podcast and so on. Obviously you do all the hard work on the actual show itself, but I do some of the work behind the scenes to.

You're being too modest.

So, yeah, which has been fun. And we've tried to get a few episodes in the can and get a few minutes together. Drumroll yeah, we hit 100,000 downloads last week. What was it, Wednesday maybe.

Yeah, I'm expecting the crowd to go wild in the chat area here. Congratulations. Are we getting some of those messages coming through?

Yeah, well, it's great, really, because I mean, the first episode, obviously, you know, there's a little trickle of people that listen to it and then, you know, as you watch, as you look at the stats, it goes up and up and up. And now, you know, it's not uncommon for five or 600 downloads and, you know, 600 people listening per day.

So that's extraordinary. Yeah, it's funny, you start these things and you think, oh, I wonder if anyone's going to listen. I don't really care because I just want to introduce. I want to interview these people and learn more about them. Who out there is just out of interest? Type in the chat. Who out there has been listening to the podcast? Let's see.

We've got one coming up. I'll get on your podcast.

Oh, good, good. Excellent.

There's one coming up with Karen Young, which we just recorded last week, and.

She said that she's awesome.

You asked her why did she start the podcast? And she said, well, free consulting.

She gets to speak to all the experts for free. I was like, great idea. Who are we gonna put on our list?

Yeah.

So you have to tell us who's on your list that you'd like us to speak to. Gee, that interview with Tristan was lovely. What a nice guy.

Wasn't he great?

Wasn't good. So I'm going to get the chance actually to interview some interviewers in the next couple of weeks. I've got Karen coming up and a few little surprise guests. So very exciting. And now I set a goal for us. At the end of last mentor call, I wanted 100,000 downloads and we've hit like 105,000. So congratulations. Thank you, everyone. Really appreciate it. But, guys, I am short on my reviews. I promised 34 and I've got 29. And I'm going to hold you to this now, and I'm going to get everyone to pull their phone out and I'm going to make people do it. John, I need five reviews. I've got a till tomorrow and you know how big I am on goal setting. So bring up that little link that I mentioned that I'm going to make. Yep. Go get your phone. I'm going to show you really quickly how you can do this. Because you know what? This is my goal, guys. I'm here always helping everyone else out with their goals, but this is it. So this is how to rate a review or podcast on your iPhone or iPad. I'll show in iTunes, on your PC or Mac as well. But here's the thing, right? They make it so hard.

Yeah, it is quite difficult, isn't it?

Yeah. So you have to go into your phone. I'm going to give you the details here, but go into your phone and launch the podcast app. So go and launch it. So you see the app, it looks there on your phone like a normal app. Now here's the key to it. Don't just go to the podcast because obviously you've subscribed and you're with us. But. And this is for people who are listening on recording as well. We want you. Yeah, I'm going to go. I'm going to set a new goal of 50. What do you think? 50 for next month.

That's the residual people listening to the recording.

Yeah. If you don't help me out, I'm going to be falling flat on my face. So hang over here. Can everyone see the screen here? We've got the podcast little app on your iPhone Go. Or iPad. Now you have to hit this search button down the right hand side and you have to actually type in your property success podcast. And when you type that in, up will come a couple of pictures of our image. And once you see that, go and click on it. And that's where you see reviews. Now, the key here is you need to sign into your itunes account. So you need an itunes account, but.

Lots of good podcasts out there. By the way, if you haven't got the podcast app.

Yeah, go. John, you've been mad for podcasts for years. In actual fact, when we met a few years ago, you said, I've got an idea for a podcast and I said, I've got an idea for a renovation course.

That's right.

And we both got what we wanted in the end.

Yeah, that's right. That's true.

So look, guys, head over there to that reviews thing. You don't have to put your name in. Just call yourself whatever you want. As we do have many people into our private Facebook pages who don't like Facebook, want a private page and hide behind us a pseudonym.

So even the Imore show has had more ratings than us.

I am.

I'm.

Oh, my God. Okay, cool. And I actually have the way to do it in itunes as well because I am not going to leave anything undone here. Okay. So if we.

Let me get this.

Okay, Bring it on over. So everyone taking. Thanks, Paul. He says, consider it done. All those people who said you love the podcast. We will not continue.

Action taker.

We will not continue. Actually, you know what? I reckon, Paul, I need you to put your. Your address in the chat box because you came back very first when we said, is anyone out there? And let us know. And he's also doing a review for us. So put your address in the chat box and we'll get you a book.

Surprise gift.

Yep, a book. Okay, so here we are. If you're on itunes, a little bit different. So you have to open up the itunes store. So you see at the top there, it Says my podcast.

Oh yeah, this is actually itunes. On your computer?

Yeah, on your computer. PC or Mac. So I'm going both ways here. So it says itunes store up there and I'm pointing but you can't see that. So John's gonna put his little mouse over it. You can just here, itunes store. Once you've put that in, then what we need to do is once again search your property. Success podcast. Leave no stone untied, turn to your job, hit on the picture that looks like me and then hit rate and review. Okay, I'm not gonna beg, but I'm begging.

Please, please, please.

Fabulous. Okay, that is great. So, okay, I've had my little high horse moment there and thank you everyone for ind.

But now I know I'll go and do it myself.

I'm actually going to go and you can't vote for yourself. I'm going to go and onto my, my iPhone now and just see if anyone's listed anything because by the end of this show, if I don't have more than 29 reviews, I'm going to go through it again. Okay, so that's all good. What else?

Do you just keep on going through it until someone.

Pretty much. Yeah, until people hang up at midnight. So that's about it.

Great. Fantastic. And I think.

What have I been up to?

Yes, what have you been up to?

Well, I have photos.

Oh yes, you do too. Let me pull those up.

So I have had a great month. You can see here. John and I ran a dot mapping exercise. Dot mapping exercise as part of the one day workshop in Melbourne.

Yeah.

And we had a fabulous group of people, as you can see here, Bonnie and.

Oh, I can't remember.

I think it says Marie, isn't it?

I think it's. Yeah. Is it Marie? Yeah, Yep. Sorry, sorry. Marie.

And gosh, we had so much fun. And we had, we had came down to a great, great list of suburbs. We had people who had attended Brisbane in the past who came down to start buying in Melbourne. So we've had a lot of return.

Yeah, yeah. A few repeat workshoppers, which is fabulous. So yeah, it's good. I mean if you, it makes sense. If you're ready to buy and you can get all the suburb research done in a day, why not?

And hang around because we've been doing a virtual one on the private Facebook group and we're about rounded out tonight, so we'll give you a demonstration of what we do.

It was good. And we had a trip out to Coburg and, and had a look At a house there. And that was. It was a really good experience.

Needed renovation.

Yeah, it was definitely in need of a renovation. And it was actually opposite. I don't think we talked about this on the call but since that workshop. But it was actually opposite a bowling green. Yeah, like the. The straight across the road was a bowling green and development potential. Yeah. So there was a discussion around. Is that a, you know, by objection. Potentially having the, you know, all those bowlers out the front door possibly.

Well, whilst we were busy hard at work in Melbourne, my husband took my son off to the air show and that is just their final photo of what happened at the end of the day and they came back. In actual fact, I spent the day next day in hospital with my son. It's sunburnt eyeballs. There you go. The reflection. Yes. Apparently too many explosions. A lot of interesting experiences we go through. But how about that for someone with an explosives background. I have to say I really enjoyed the workshop but I'll be going to the air show in two years time when it's back.

Won't make that mistake again.

But I also attended this fabulous tech conference and had a go at virtual reality. Now John and I have secret plans which we'll probably share with you right now that at some stage we'll be doing a virtual reality property inspection tour. I've actually, I've been collecting virtual reality headsets as I see them on sale. So I've got about 10 at the moment. Nothing much to do with them but other than I've collected them and here's a love catching up with clients. This is a fabulous client which I'm going to actually grab her at some stage to do a case study with and her beautiful little baby. So we go through so many booties and investors choice mortgages sending them off to our clients to have babies. It's really exciting. So it was lovely meeting little Lucy and little Lucy is our newest member of the club. So yeah, there you go. Had a great month. And what else can I tell you that is about it?

These things.

Yeah.

My partner Eileen works at in a kind of department of Melbourne University where they get to experiment with lots of things and they do, they're doing a lot of research with these, these things here with adult education, that kind of thing. But they're incredible how like how realistic it is. Like when you walk up to an edge of a cliff or something like that and you're looking down, your body is telling you not to go a step further. Yeah. It's crazy.

Yeah. It's great stuff. So I'm really looking forward to expanding that kind of technology in the future.

Yeah.

Now, I'm not sure, Jody where you're going with this, but she's put in the chat bees at 1970 prices.

Maybe that's payment for the other bowling club.

Yeah. Hey, we were talking a little earlier tonight about interesting questions for suburbs against the Clock.

Yeah.

And we actually talked about those. Those suburbs that had RSL clubs, didn't we? And all memorials. We should go bowling.

Well, we've blown it now. No.

Okay, everyone start thinking about bowling club suburbs and know that we probably don't know the answer.

Type into Google Maps and you've got it.

Look, just some. A big news as well. You, our lovely students for many years in the Ultimate Guide to Renovation have had their private Facebook group, the Renovators Network, and we've just merged them into your property Success club private Facebook group as well. So welcome. All those hundreds of people are coming over and saying hi. And really we were seeing so much really interesting information happening on each of these pages and it felt like we were kind of holding back and not getting everyone together and sharing.

Yeah, we're sharing it with everyone. Yeah. And the other thing was, is we've got lots of things planned. Like we've recorded some case studies and stuff like that. We really wanted a kind of central hub that we could share it with everyone and have everyone involved in it. So Renovator Network certainly won't go away. There's nothing happening with that. But we're just going to.

You can go back to the archives.

Yeah, that's right. And so. But the idea was to bring everyone from the Renovator Network across so you can be, you know, part of this whole new club thing with all the.

New stuff we've got planned, whole new world. And we started that off with what we're going to do tonight, which is this virtual hotspotting workshop. So, you know, people paying, you know, a lot of money to go to the one day event. And this is kind of like a collaborative way that we could do it together and show you guys, you know, a bit of more about the methodology. People who've been through the club have been through a number of those modules and started with map number one, module one. And in the Ultimate Guide to Renovation, our last enrollment group do it in module two. So we wanted to, you know, bring it together and show you the magic. So that's all exciting. Yeah. Big news this month. March has been another big new big month in finance. So the banks and APRA have really.

Scaring everyone again.

Yeah, they're doing what they do best. So just a quick recap. So around December 2015, APRA said we want to reduce the number of investor loans to below 10% of your loan book. Banks have been working on doing that in a number of ways. They have pretty much tightened up their serviceability. What we've seen in the last two or three weeks has been, you know, banks like CBA have pulled back from 95% loans to 90% loans in Auckland. When they went through this very similar exercise two years ago, they went back to 60% of our loans in Auckland. So we're seeing, we're seeing some big changes there. Amp Adelaide bank announced yesterday, so 28th of March 2017, those people who are listening to this as a recording, that they will only do 80% LVR. So that Adelaide did that, Adelaide was the first to move during the GFC and pull back on those lending too. So it's another reason why you should have your lending with different lenders because of your strategies to pull out equity and all of a sudden there's no ability to do that. It's a problem. We have just processed in the last three weeks 62 interest only extensions for our clients. So APRA came out the beginning of March and said, we're not going to mandate this at the moment, but just as a heads up, if the loan agreement you have changes a little, we're not going to, we want a complete reassessment with new pay slips. Now there's banks like WESTPAC and CBA that after five years interest only ring up or get onto your net bank and just extend for another five years to the maximum of 10 years interest only for investment loans for Westpac and five years for principal place of residence or 10 years for investment and principal place of residence for CBA. And so that little rollover, we believe that in coming months that will be mandated and those banks will work pull back on that. So we wanted to be on the front foot for our mortgage clients. So we contacted CBA and WESTPAC clients and rather than, you know, leaving to the clients to do it themselves, we processed those 62 just for CBA in the last two weeks interest only extension. So you have a CBA WESTPAC loan. Just heads up. They're not saying they're going to do it, but we know what APRA has been like and in May we're predicting that we're going to see some more curtailing of spending and LVRs and increased buffers and lots of different things. So heads up, there are big changes afoot. Interest rates obviously have been segmented now. So interest rates have been going up outside of the RBA, Westpac, CBA, NAB, St George all last week moved and all of the minor lenders are moving this week. So they're pushing the rates up and RBA hasn't and we're seeing investor loans increasing as well. So it's all happening at the moment.

So it creates a lot of uncertainty, doesn't it? Because, you know, you can be sailing along thinking you're all good and have plans to do your next thing and then suddenly everything's upside down.

Absolutely, absolutely. Especially just little things like, you know, if you had a strategy to buy just one property, you know, renovate it, access the equity, live off the equity, get married with the equity, go on holidays or buy another property or whatever it is.

Yeah.

If the lenders were no longer let you get the equity, that strategy stopped.

Yep.

You know, so now is the time to really, I guess, consider what your next step is, because I think right now is the most, is that you'll ever be able to borrow. Even if interest rates do drop later in the year, the servicing abilities will not increase or improve. In actual fact, I created a poll just to see what people's thoughts were on the finance changes and what concerns them the most. So I'm just going to launch that now because I'm just, I'm interested in poll in progress, getting an idea of.

You know, lower LVRs, higher rates for investors not being able to borrow for the next property, government changes and example, negative gearing, not planning correctly not to allow future purchases.

So that's kind of around if, for instance, if you're with someone like Adelaide and you had a 90% loan and you were able to access equity, but you can not no longer go back to a 90% loan. It's 80%.

Yeah.

You're going to have to change lenders to get 90% and pay mortgage insurance again.

Yeah.

So if you don't plan correctly. So, yeah, see there, so interesting.

So, yeah, if that poll going. Let's have a look at the progress. There we go. 51% voted. Yeah, that's not changing much. I might just close the poll and share the results.

Let's go and have a look at that.

There you go. Everyone can see that. Yeah.

Okay, great. And you go ahead, I'll speak to Glen. Okay, no problem. So what we've got here is the greatest concern I Guess is not being able to borrow for the next property and not planning correctly now to allow for future purchases. So I think they're really legitimate concerns, the lower LVRs, you know, if you've got some equity or cash, you know, potentially you can, you can deal with, but you know, government changes, et cetera, not Look, I agree, 6% there it is what it is and everyone threatens every budget that they're going to do something interesting. I'd love to see some really clever affordability things come in. I think some of those vacant landlord taxes are a good thing and I know in Canada what they've done is if there's a vacant landlord and I think there it's for over two years where there's people just put, you know, pretty much buying properties and not tenanting them and just keeping the money there. And they've, they've said overseas investors have been doing that, that they charge them a bit of a tax and with that tax, the, that goes towards housing women at risk who've been escaped from their homes, so who've had some trouble. So yeah, and children obviously. So there you go. All good. So that is fabulous. We're going to close that poll.

So pretty, pretty level pegging between three.

And six not being able to borrow for the next property and not planning correctly. So yeah, planning now, guys, is very important and I guess that is about it. So let's get on some quick housekeeping so we can get on to the exciting part of this.

Yep.

So now if you are on your computer and you're experiencing any problems hearing or perhaps we can't hear you during the questions, there's an option to call in on the telephone and the telephone number can be found in the sidebar under the audio options drop down down menu. You can call that number from a landline or mobile or even Skype.

So Glenn, that might be a good one for you if you having problems. So I'm going to type that in because you probably can't hear me.

Yeah, we'll just do copy and paste and as I said, there'll be a recording up 48 hours later. So for those in Investors Choice, diamond and the Ultimate Guide to Renovation.

Yeah, that's right.

And you can basically, if you do have a question. So we're here to answer your questions. All you need to do is raise your hand by pressing the little hand icon in the sidebar menu. So it's quite small to see. You can click on the hand button. That notifies me you have a question and I will unmute your line. You can also ask questions by writing them in the chat box, the question box at the bottom of the control panel. And I'll also get to those if we have time available. But I really do give priority to the spoken questions because it's nice to have a chat and I think we can fully understand questions when we can go backwards and forwards in real time and talk about your problem or issue or opportunity you'd like to discuss with us now. I think it's also more engaging and a bit more fun for everyone to hear someone else's voice rather than us.

Yes.

Now, there's no such thing as a silly question. We all know that. But sometimes we get a little shy. And if this is your first time, don't be shy. We are here to help and we pretty much can answer anything and we give it a good try.

We're very close to Google here. Search anything.

Lastly, look, look. Just a reminder, this is not tech support. Call if you're experiencing any problems with videos or downloads. I'm really not the right person to fix it. But if you do have any of those problems, we are here to help and we are simply an email away. So just email us@supportourpropertysuccess.com and we'll get the right people into fixing that problem as humanly as possible. So, John, I reckon we should start with a question before we get into this amazing event that we've got going on with this virtual Brisbane hotspotting.

So hands up.

Put your hand up if anyone's got.

A question, anything you like, anything going.

On, going to us. So there's been some really great activity on the Facebook pages this week as well. So Danita has just started posted up, she's new to the group and she's posted up a renovation that she's just done, a buy and rent renovation, which is fabulous. And so we're keen to see her next purchase and follow through.

We start there. Do you want me to swap screens? Yeah, yeah, do that. No one's got the hand up yet.

Cool.

Maybe some people put their hand up while you're having a look through. Let's have a look, Jane. There we are.

So if we have a look over here. As I said, you know, Danita's just joined the group and welcome. And she's just done a cosmetic renovation. I gotta say, it looks pretty fancy to me.

Yeah, look.

Looks fabulous, doesn't it? Just goes to show you what you can do. And I think that she said she had done it in three months, 45 days of working on the renovations. Hired a chippy for seven days, plumber for four hours, husband's electrician. So always handy if you've got a trade in the family. And so that's sensational and we look forward to hearing more about your next renovation. And then we have. Now we know this is a pseudonym. I can't remember, remember the right person's name here, but where was it? Redmick Phillips has got demo day underway. So we're really keen to hear about how you've been going with that. And those people have been on this call for a while and I see some very familiar names jump up there and people who have been doing renovations like we've been tracking Lorraine, who's just bought and sold or renovated and sold property very quickly as well, and others that have been doing their renovations. So those from the renovator networks are going to be over and sharing their experiences soon. And we're really keen to see how this renovation goes. And once again we're here and can answer some questions if you want. Now let's move on to any questions. Guys, let's have a look. No questions. I just keep talking. So good. Everyone is here for the event and. Okay, I'm going to stay on this screen till then. Hi, Ann, can you hear us?

There we go.

Hey, Ann, we got you. How can we help? Because you guys were talking about rate going up just now, so I thought I should ask a question about. So you know how in US they say the interest rate go up to 1.5 and if that's the case, like if it happens sometime next year, then how much it's going to affect, I guess the property price.

So the US rates have gone up to 1.5. And how much. If our rates go up, how much will affect the property price? Was that the. Yeah.

Is that the question? Yeah, that's fine. Actually, it's a really interesting question and I'm going to have to. Where am I going here? I'm going to find. So those of you that have seen some of the reports that I. I'm just trying to get into some information. So those of you who have been looking at the videos of the reports that I've been doing in the last couple of days and reviewing would have possibly seen the video that I did on this one. Okay, let me show my screen and hopefully you've got this. Okay, so this here is the SQM research report from Louis Christopher. So I've got a video that is on this now it's really interesting that he actually went through and did some forecasts on what will happen if there's interest rate changes. So you know, there's, there's some interesting analysis here on what is the forecast for the city. And he's talked about some base scenarios. So he said, look, if the cash rate's unchanged, the economy is steady, Australian dollar stays between 70 and 80 US cents. Now arguably that could be changed by what's happening in the U.S. it's nice to see that there's some confidence back in that US market and the property market is starting to have a resurgence. But there is the very strong indication appraisal takes some very strong action mid year May this year and possibly reduce that 10% limit down to even lower that the lenders are allowed to have of investment loans. And just to give you a heads up, I'm a pink diamond CBA broker, which they have. Sounds impressive, I know it doesn't it? Silver, gold diamond and pink diamond. So I went to a very special lunch for pink diamond. They don't give you pink diamonds unfortunately, but pink diamond broker brokers the other day and I spoke to the head of mortgage services for Australia and we had had someone who was about to settle a loan and they had a very large loan refinancing the home and a very small component, $100,000 of investment for future investment use. And they cancelled the settlement after they had booked it. And we went back and said we know that you're not taking refinance loans, but this is $800,000 home loan with $100,000 of investment and they 9.9% at the moment. If we hit 10, we asked APRA, could we have three months grace? And they said no. So we are saying no to any investment components of loans. So you know, they're taking this pretty seriously. And if APRA puts in more action mid year, we know the banks are knocking on that 10% wall and the lenders of that, the lender that has been, the lender that has, what would I say? Liberty has not had to fall under the requirements of APRA's servicing mandates. And they've just in the last week pulled back on their servicing calculator and made a lot of changes as well.

So what's Christopher, what are these scenarios?

So this is the interesting case, Ann, is that what we're looking at here is scenario one, you know, if you're in, just type in for me because I know you've got a bit of background noise there. Is it Sydney or Brisbane or what city you're in. You can see here that there's still, you know, 10, 15, 16% growth predicted in Sydney and Melbourne this year, up to 3 to 7% in Brisbane. But if rates were cut here, then, you know, there's a upside of the fact that things are going to get better and there's going to be a bit more growth stimulus. But rates could, could, could rise and if they rise, we're actually back to really where we are is if as if it's unchanged.

So you know, he also made. This is the same podcast guest that exactly made the called those triggers. So it was the cache rate and the, and the Apple changes. Right. With two of the scenarios that he, if he said normally more than one trigger. So if the two of those things were to go at once, that could change the direction.

So I mean if we look at an Australia in a bubble and we said what could change in Australia that could change the way that the market moves. It's interesting to see that a rate rise is not really going to change things because servicing doesn't change because we've already been serviced at 7.24% by most lenders. There could be some stimulus. And this is more around a, I think a mental thing rather than the servicing ability improves in that if rates reduce. Now if we expand this to the question of the anthropic has is that us, you know, their rates are going up, their economies in a, in a better position. Regardless of whether you like Trump or not, the stock market is responding to his changes. But you know, there's a, obviously there's a wall involved and there's protectionism. And if he does come up with a lot of these protectionist policies, it could affect the relationship with China. And obviously we have a large trading relationship with China. We sell them stuff, they make stuff and sell it to Americ. So if all of a sudden America says they don't want the stuff, then they probably don't need our iron ore and they probably don't need some of the stuff that we produce. So I think that that is going to be the possible outcomes that we need to watch for. And obviously, you know, how our dollar performs against the US Dollar is going to be important as well. So all good. But Ann says she's in Melbourne. So I guess the upside is if you're investing in Melbourne or you own in Melbourne, there is 10 to 15% growth still in 2017 predicted to the market. So yeah, and I hope that did that answer your question. I'll just open that.

No, mic's dropped down.

Her mic's gone. Okay. Sorry. Ann put in the chat. I hope that answers your question, but gives you a little bit of clarity of what we're. We're seeing behind the scenes of what's going on as well. Fabulous.

Great podcast too, Louis. Christopher.

Yeah. Oh, it was our podcast. I was thinking you referring him to someone else's. Cool. Yes. Great podcast. Anyone else have a question? Because if not, I am going to go through some of these reports that we've done. Okay, good. So I did call for some dot maps here that people could put up. So thank you to everyone who put up their dot maps and you know, would have loved people to go out and do a brand new one, but we, we didn't get a up to date one. Even Sarah shared her dot map very generously from December in Melbourne. But Yoris did do a dot map and we chose his dot map and I did a full analysis on his dot map. So I even had a Investor's choice discovery call today and the lady rang to ask about how do you get from, from the dot map to the next stage. So if you've been following us, your property success club. And I hope you're checking back daily because I'm putting up information daily on there that I wanted engagement with. But you'll see that we were going to set as a group our buying criteria. Now I put out there a number of different price points. As you can see, 14 people came back at $550,000. And we went through and had a look on the Residex report and it came up with 515,000 was the Queensland medium. So it was a little bit higher than that. And then I was thinking, oh, this is good. So, you know, we've done a couple of workshops in Brisbane on these hotspotting workshops and I was hoping that that meant that we'd be going to maybe a 25k distance from the CBD. But no, it was chosen. Where did we get to 15ks? So all of a sudden it's a problem with democracy. Yeah, problem. Well, we can work with anything. So what did we get? We got, oh, people are still voting. Well, we had 15 people going for 15Ks. So as you can say, 15Ks became the number we looked at. Now, just as a interesting thing here I was, and you probably saw the video today. Fingers crossed. I was looking at the Terry Rider Top 5 Brisbane Hotspotting Report today and this is he. One of the areas that he picked up was this Redland Cities, city area. Now, if you have a look at this, we're 25 to 45k's out from Brisbane and the price points are tipping on that 550 mark that we talked about. So I didn't have a lot of hope that we were going to find a lot of suburbs that were going to be within 515 and all the filters that we have. But we are doing it together. And for those of you who have been following this diligently, and I know that a lot of you have, we did go through and we started that dot map investigation. So if you go to these little videos here, I did a full analysis and came up with a bit little list of 2% differential suburbs and 1% differential suburbs. So I came up with 20 suburbs using the dot map filter. And then I went.

So do you want to just. If for someone who perhaps hasn't seen that, do you want to just explain that differential and the color of the dots?

They should have watched the video. I did it. Oh, before. Okay, so the, the color of the dots. So what we actually did when we went into the dot mark map is we chose some. So we use Yoris's legend here. Now, as I explained in the video, we usually use a bit of a traffic light color scheme. So you know, red would be over 10% or over 6% in this case, and then orange and then we go, you know, down to the purples, blues, greens. So we're turning kind of like a color scheme. Yoris has done it a little bit differently. So red is the minus 3% and then up to yellow. Now white became a little bit difficult to read as well. So Yoris, we're going to have to send you some dots, I think. But it was really great that he sent this through. So what I did is I zoomed in. You can see here possibly we've got a 10 kilometer radius here.

Now this is average 10 year capital growth. So it's annualized growth over 10 years.

Yep. And so this is the 20 year zone. So what I did 20 kilometer. 20 kilometer. So I went from 10. So we went out to 15 kilometres. And then what Yoris has done is he's grabbed the Australian Property Investor magazine. He's gone to the data bank at the back. Now, if you're doing this in the future, that magazine's no longer around. So your investment property magazine gone to the annual growth, which is actually when you look at the definition, the last 10 years of annual growth over that period of time. And what he's done is he's grabbed that information. So he might go ban, you know, 6%. So it deserves a, you know, white. It might go cherm side 10% it deserves a blue. So he's dotted it. So this is the idea of the ripple effect. If you watch the video 10 minutes it actually goes through and explains all of this and then it will actually go through and I will do the full analysis of comparison of that 15 kilometer zone. So lots of.

When you selected your suburbs, you selected suburbs that had neighboring suburbs with minimum one inch. But did you take any one increments?

Yeah, got 4:1 increments. And I explained why because I think they were interesting enough to have a few suburbs pushing in on them to show a bit of growth potential. So we started with the dot map, lots of fun. And then we moved on through to the Residex predictions report which is really exciting and I'm glad that I had the opportunity to show you this. It's brand new from RP Data who've just bought Resx last year. They've updated it. They sent me a link to the brand new predictions report. Now we went through the there's 100 and I came up with four suburbs that so we've got 24 suburbs now. Oh, someone's chatting to me. Hey Sue. Four suburbs that came up in the predictions report. And what we found was we went through, looked at the first 12 check out the video once again. But the first 12 really indicated to you that sometimes your buying criteria doesn't fit the predictions report. So had the opportunity to jump through and show you the customized predictions report that we've actually been able to generate with RP data so that you can actually and I teach you in this little video how to do it. You can actually generate your own and a lot of cost effective. So really cool, really cool. Then we jumped in and I did.

About just a quick one from Peter. Jane, your investment property magazine only goes back five years.

Years.

They actually call it annualized.

Yeah. So Pete, when they say annual growth. Yeah the annual growth is actually the 10 year growth. They just say annual growth. Growth. Yes. I miss API magazine too.

That's right. Because yeah, the other magazines just called it 10 year.

10 year growth.

But yeah, so it's a bit confusing.

So then I would did the Ripe House report once again. You know I'm not showing you the entire reports. You know these people charge me a lot of money for these reports but I went through and did the analysis for you and created those suburbs for you. And one of those suburbs did come up, which was Wavell Heights, but it didn't have the sale criteria that I had. So I'm just going to go into a bit more about the buying criteria a bit later. So we did the ripe house one. Then I went through that SQM boom and bust report. So I had a number of suburbs that actually came up there, another 13 suburbs that came up on that report, which is fabulous. Now the way that they run the boom and bust report, as I explained in the quick little video, is that they allow a star system but they've got, you know, household income growth, vacancy rates, They've got about 15 different criteria that they go through. So we're collating all the experts information here and we're putting it together and then we go. I did the hotspotting, Terry Rider hotspotting report just showed you a quick little look at that. Then there are actually no suburbs within our 15 kilometres. I thought we might have closely got there with Rochdale, but it wasn't close enough. And so we went through five different reports and, and this is what I ended up with. Duh, duh, duh, duh. So my Criteria was the $550,000 price point. Now I also wanted to be 15Ks in the CBD. I've then applied a number of extra filters. Now these filters are explained in those videos. I want you to be able to go back those and look at it and see how we came up with the numbers. But I wanted to have over 30% renters. So for my first cut, I cut anything that was less than 30% renters. And I went through and I also had a look at the rental yields. Now the way that I got the rental yields is I went to actually the Residex State market report. Now it's due out next week and I had the opportunity of purchasing it earlier. But I've also been able to get a copy of that market analysis for you. And if everything works, John, I reckon we can probably drag and drop that handout into the. Drag and drop the. And it gives you the analysis. Let us know guys, if choose a file, maybe let us know, let us know if you can you get this.

There? Yeah, yeah, I'm just going to copy and paste it in.

I don't know how this handout works, but what we wanted to do is just share with you that information that we have. So you can see here, this is the market commentary report. It's not the full report showing all the hundreds of suburbs, but it is the commentary and I went through here and I looked at what the actual yield was. So have a look at that. It's a really nice report. CoreLogic's added a lot of value and their own heat maps, which is fabulous. So you can have a look that in a moment. We have copied that handout for you. And then I went through and I looked at vacancy rates. I wanted to have less than a 3% vacancy rates. Now I've set a number of sales here. Now this is an arbitrary number. I've said, look, I want at least nine sales, 108 sales a year. And the reason I set that was, well, my, my video, my filter. But you can set whatever you want. So, you know, we can be a little bit lenient around this number of sales, but it's just that if 70% of the market is owner occupiers, you don't want to be in a subway where there's two to three sales a month because you know, there'd be maybe six to eight properties on the market at any one time and 70% of those purchases that owner occupies and arguably they're going to be more emotional. So I wanted to just show you that the sale, it's a trap too.

Actually, because when there's not many sales, you often will see good growth because there's not, you know, as each sale comes on, there's a period of time between them and you see the price jump up and yeah, it's easy to get sucked into that. We got sucked into this. Places in Melbourne, like East Ivanhoe are like that. There's low turnover of stock but. And always a good, nice capital growth.

So look, guys, we ended up with 37 suburbs here. They are pretty impressive. So what we're going to do next, I think this is time. I mean, I've just gone through the criteria. Maybe we could do a quick poll, John, and just see what people's, you know, if they were going to change any of those criteria, what would be the kind of thing that you would change? So if you were going to change maybe a lower price point or maybe a higher price or maybe you wanted to be closer or further away from the CBD. So we used 550,000 for Brisbane and we use 15Ks in the CBD.

Yeah, and we saw how that affected everyone wanted to be close in, but they didn't want to pay too much. So you can see how you've got to, you've got to move a little bit give here and bit of give here.

Yeah. So, okay, well, we've Got. Oh, lots of people are voting. We'll leave it open for a few more moments. But it seems to me that distance further away from the CBD and so people, you know that affordability thing, most people are now getting to the point where, where they're happy to move a little bit further away for what they can afford and it comes down to be able to get the best property that you can afford when you can afford it and in the best area with that growth potential. So Here we go. 58% of people say that they're happy to widen the distance out. So 20 to 25 k's when you've got a good infrastructure, public transport network and rail and road structure as well as well. Makes it a little bit easier.

Yeah, and often that's very visible on those dot maps, isn't it? Follows those infrastructure routes out from the city.

I know I did a one day workshop with a mentoring student once and she had, gosh, I think she had like 18 properties and she was looking at downsizing and finishing up and she had a lot around the Gold coast and it was. So when we did the dog map of the Gold coast it was so obvious where the suburbs were that had taken off and there were those on that road line. So straight up to Brisbane.

Yeah, so.

But anyhow, thank you for filling in that poll because I think it's really interesting and, and what we've got here is the fact that we've got 37 suburbs ready to put into the suburb selector software. But enough of me speaking, I reckon we should have some fun.

Oh, good. I know what you're thinking.

What am I thinking?

You're thinking suburbs against the clock.

Of course I am. It's my favorite, my favorite thing, radio.

If anyone would like to be involved in Suburbs against the Clock, stick your hand up or you know, put in the chat. Me, me. And I'll unmute your line actually. There we go. All some hands up at the moment.

Now you don't know if they're questions or. Hands up now.

There we go. Paul's got his hand up.

All right, let's green.

Yep.

Let's try Paul. Hi, Paul, can you hear us?

Oh, not too much luck with Paul's mic by the look of things.

Hey Paul, you got your microphone plugged in? Okay, Maybe Paul might get his microphone plugged in and we'll come back later.

There's another Paul. Hang on, let's try the other Paul.

Lucky Paul. Pass it on. It's Paul Wilson.

Paul?

Yeah, can you hear me? No, he Says pass on me. Guys, he's under pressure.

Come on, Paul.

Too much pressure for you.

Can you hear me now?

Yeah, got you. Yeah.

Okay, good. Good to go. Oh, wonderful. Okay.

Okay, Paul, now do you know how Suburbs against the Clock runs?

I certainly do, yes. Oh, good. Okay.

Well, an avid listener to the podcast, obviously. Obviously. And a reviewer too.

Reviewer to be, maybe.

Oh, I'm gonna have to check by the end.

So. Yeah, really easy. Just. Yep. 10 suburbs in 20 seconds. And we've got a couple of semi intelligent questions and a couple of other questions that aren't. You couldn't describe them as semi intelligence.

No, John's come up with them all by himself. So I apologize for that.

Paul, you're distancing yourself already. Look at you guys.

But I have to be. I have to tell you, if you're already a member of your property success club, some changes are afoot. Are you a member? I am a member.

Yes.

Changes are afoot. So if you do actually get 10 suburbs in 20 seconds, then we will renew your membership for another year. So something good to play for?

Yes. To the new UBI revamped version.

Okay, you ready? All right, no pressure.

Let's go.

Okay.

Which city would you like to play for? Let's play for the Central Coast. Gosword. Oh, okay. Yeah. The thing with some of these questions is they're going to be a lot harder in kind of regional areas than cities. Sydney. Yeah. Okay. All right, I think we go with Sydney.

Sydney. Yep. Okay. If you want to play with. Yeah. Central Coast. Yeah.

Okay.

I'm sure Paul can do it.

Really?

Yeah.

Go for it. Okay, you. So you're good for Sydney.

Yep.

Okay, Paul, your question is, can you name 10 Sydney suburbs that are beach front started right manly 1. Bondi, Tamarama 3. Bronte. 10 seconds. 4.

Quick, quick. Camera 1. Die.

Close.

Lucky you're getting a book already. Well done. Well played. It was so tough. But you were close. Close. Very close.

Pressure.

Thanks, Paul, for being such a good sport. Not a problem, guys. Thanks again.

Good on you. See ya.

Okay, well, let's see if we've got a question.

Those ones. Okay. Okay. I'm just trying to work it out. Oh, okay.

It's probably a question we can answer quickly.

Yeah, yeah. Amanda.

Hi.

Jen. And John. I'm just at the beginning of my path in property investing. I'm really interested in attending a course to go through dot maps and choosing location. Are there any plan for New South Wales in the near future?

Well, Amanda, great question. At the moment we have another one. Day workshop planned in May for Brisbane. So nothing quite planned for Sydney. What we do find is that a lot of the students do come from all over Australia because we learn, we teach that repeatable technique that they can do themselves. So. And they go back and apply it in their area. So our idea is, you know, teach the. Teach the men to fish rather than.

Yeah, we did. We actually ran a poll in the Facebook group and Sydney was. Was way down and in. That was. I think that was in maybe February that we did that and so. So we decided that we'd probably go Melbourne and Brisbane next. But if, you know, if there's demand, no problem.

On a plane. There was someone putting together a petition to get us to Perth.

Yeah, rope a few friends together.

You've got eight people. We're in. So, anyone else have any questions that we can answer before I go on and finish some of this suburb selector software? Just put your hand up again. You may have already put it up, but we've put it down because we thought you were putting your hand up for the.

No, I think everyone put their own hand down as soon as we said.

Anyone have a question? And there you go.

Sarah's got a hand up.

Great. Sarah, hi. Earlier on you were talking about serviceability of loans and I'm just trying to, you know, we've got a certain amount saved and we're looking to invest and I was kind of trying to look at how much we would really need to get as a rental yield in order to service the loan without having to support too much from our income because, yeah, we want to try and keep it as neutral as we can. Sure. It's a great question. And as interest rates are so low, your opportunity really to be positive cash flow or neutrally geared is probably at the best place that it can be. Now, the fact of the matter is that usually people might take three to seven years, average five years for a property that's actually growing in value. The rent's being pushed up and reviewed regularly before it actually gets to a cash flow positive position. But if you think about this, if interest rates are 4.5%, 4%, let's say arguably, and currently in Sydney and Melbourne, we're looking at rental yields at 2.3%. In Brisbane, we're looking at rental yields. Well, the buying criteria that we chose here was 4.22%. So in theory, buying in Brisbane with a rental yield of 4.22% and an interest rate of 4.2% means that it shouldn't cost you a lot. But what you also have and how I look at my costs and I've just been through nine hours to do my tax last Saturday. But it and just going through all the properties and looking at costs, on average of all the properties that I have, it's the on cost. So the landlord's insurance, the strata management, maybe some maintenance, the rental management, everything that goes into it, the land tax, the rates, et cetera, et cetera, comes out to be about 25% of the rent. So if you're thinking if rent, you earn $100 a week in rent, an extra $25, I allow for the on costs that's obviously spread across the year. So you're going to have some more costs on top of that interest repayment that you're making. And often what we do is, is we're not buying a $500,000 property with a 20% deposit, so a $400,000 loan, what we're doing is we're borrowing the $100,000 from another property using that equity and maybe $20,000 from stamp duty. So your $500,000 property really has a $520,000 loan against it. So if you think about it in that context, you've got the interest on the loan, you've got those on costs of about 25% of the rent and then you've got the rental yield to offset that. Now obviously when tax comes into play at your tax rate, you've got the deductions that you can make, but to minimise the cost to you, you're actually trying to seek the best rental yield that you can have. And the other thing is that we're talking about a long term investment. And when we talk about a good investment strategy, a minimum of 10 years is where I would have as a buy and hold period. Interestingly, R data came out this week with the average long term capital growth figure for Australia at 7.2%, which is pretty interesting when you think of that Rule of 72. Rule of 72 says 72 divided by the capital growth will tell you how long it takes you to double the value of your property. So 72 divided by 7.2 is actually 10 years. So, and I've got no idea why I said that, but was it an interesting fact? But where I was going with that is that over 10 years we can't expect the rates to be 4.2%. We know on average rates over the last 10 to 15, 20 years have been around 7.5%. And that's why those banks have been pushed by APRA to push any existing debt that you have and new debt to a minimum of a 7.24% buffer. So you're being assessed at that 7.24% at the moment by the banks to make sure that they will let you lend the money. But when you're thinking about your own cash flow position, you're going to have to work into the fact that that is the long term kind of natural equilibrium of where the interest rates are. So over that long term period, you're going to have to think at some stage, if you're getting a 4.22% rental yield, then, you know, you might want to do something to increase that rent that you're getting and increasing that cash flow. And we talk about renovation, people do that by having. And I spoke to a new client this week who has just doing her third granny flat. So she's actually optimized that dual income. So she's actually getting a much higher return. Now the banks, as I said with servicing, the banks are getting a bit tougher and they're also capping what your rental yield is. So even if you've been a bit of a genius and been able to achieve 10, 12% by having that dual income coming through, a lot of those lenders now are pulling back 6, 8% as the maximum they'll let you have. So, you know, they're kind of being a little bit more conservative as well. So for you to be able to target an area that is going to give you that rental yield to cover your costs and to get there as soon as possible, I think looking at a property that you can manufacture the cash flow and that rental yield, renovation, you know, dual incomes, et cetera, is good and going to an area that has that underlying good rental yields already. So we're talking about, you know, the Brisbane market at the moment, you know, we're looking around those 4.2%. So you know that that is a way that you can minimize the cost to you. Yes, I was looking. Yes, yes it does. Because I was looking at Melbourne. And although I afford to buy in, you know, some of the areas, when I'm looking at that, you know, the rent that you get, it's quite low. And therefore that concern of being able to service it long, you know, in the short, in the interim period. Absolutely. And when you're talking, you know, talking about. So if you're, you talked about the fact you had some savings if you have equity in a current property. So for instance, one of the things I do with my mortgage clients, if, let's just say they needed $100,000 to put in a, you know, 10% deposit on a $500,000 property and a stamp duty of 25,000, instead of just borrowing that 75,000 DOL, we would borrow maybe 100,000 or $120,000. So there is some capacity there just in case you can't cover that differential and rates go up quickly. So you've got some capacity to use some of that equity to pay for the difference that you need to have. I always think it's great to have and it's nice to have three months of payments in your bank account if you can. That if you did lose your job or you lost a tenant, you could come cover the costs of your lifestyle or what you need as well. So having that, if you don't have the savings and you've got the equity, I'd say keep that buffer so that you've got that peace of mind. But buying with the view of being able to manufacture that cash flow is a really good thing. If your strategy is around growth and a shorter period of time, wanting to have a growth kind of play and maybe buy in Melbourne, then you might consider buying a property that you can do that renovation and push that rent up quite quickly. Yeah. Yeah. Thank you. Hey, my pleasure.

Jane. I just got a question on that. If people can't manufacture that extra rent, as you were saying, what are some of the kind of ways that they can estimate how much their rent will go up over time?

You'd like to think that it goes up with inflation, so you know, 2 to 3%. But the reality is a lot of people sacrifice putting their rent up for the stability of having a tenant.

Yep.

So they're a bit afraid of putting at the moment. My agent for one of my properties came back last week and said we've done an analysis and we think we should put the rent up 100 bucks a week.

Yep.

Wow, that sounds a lot to me, a hundred bucks a week. But they're already paying, you know, $1,000 a week in, in rent. And you know, there's five professionals who are paying, you know, not a lot each to, to live in a, a very high quality property in a good area. And the market rent is 100,000, $1000 a week. And, and the fact of the matter is that, you know, that is the market rent. We did a rental review two years ago and decided not to. It wasn't in moving in the market and we did it a year ago I knew that they'd moved a little bit, but it's time to put the rent up.

Yep. So inflation historically up until recently has been what, between 2 and 3% and.

Now it's a bit lower?

Yeah, yeah, a bit lower at the moment. Yep. So yeah, you've been, it's, it's been kind of pegged to and seemingly moving in par with inflation.

And the reality is if you keep up with inflation, you're probably not keeping up. So you really need to do a bit more than that. So yeah, and it's hard to put up rent if there's not the rental demand. So the way that we try to minimise that back to the buying criteria is to be in an area with a vacancy rate less than 3%. So we want the tenants to be there, we want history of tenants. We also minimise our risk by having over 30% renters. So that's why we have those filters that we looked at in this analysis that is kind of protecting that downside for you. So you're not going to end up in an area where all of a sudden you put rent up 10 bucks a week and no one, you know, there's crickets and people move out and you know, we see a lot of that in those new development sites where there's not that loyalty. And all of a sudden there's been a new development. You know, two minutes down the road you can move into a three bedroom house. It's brand new and you know, it looks, looks pretty good. So I think that, you know, minimizing your risk is always something that I'm very big on. And that's why that vacancy rate and that percentage renters that we can see up here on the screen are two of the filters that I put in.

That third, they're for a reason.

They are. I might look conservative but I don't care. So let me guys take you to the Suburb Selector software. If there's no more questions, I would love to finish this review for you and just take you through what we've done. So those of you who have access to the ultimate guide to renovation Module two, Module three, what we have here is the Suburb Selector software. We're pretty proud of this, aren't we John?

Yeah. And the great thing is that SQM research will be providing the back end data for this shortly. So yeah, it's going to be great. So over time we might be able to introduce new functionality maybe around these filters built into it.

Yeah, absolutely. So basically I'm going to go through and do this analysis for you based on these numbers. So essentially what we've done, we've done the dot map, we've got 20 suburbs, we've done five experts reports just to see the other suburbs that people are talking about, because we're really interested in seeing, you know, what people are doing there. And then we're going to go through. So we've got 37 suburbs all up and then we're going to apply our criteria. So we have a criteria 500. So all I would do is put that in there and then we can go below the average price. So some of the people in the poll just said, oh, we wish that the price was a bit lower, but, you know, we're going to reduce the price here by 20%. So we're talking about round about $460,000. So before. And we know that the median for Brisbane is 515 and we're going to put the average price price, look just 10% above. And the reason I'm adding an extra 50 on there is that potentially in suburbs that have a higher median, you might be able to negotiate down.

Yep.

Or there might be, or might be.

A higher, slightly higher median because there's a beachfront or something like that too. Yep.

And then we said 15 kilometres. So those of you who were in our first Ultimate Guide to Renovation alumni back in, what, 2013, we had a spreadsheet and we told you to go and fill it in and you came back and said, oh, it's also hard. Yeah. So we filled it in for you and now we've moved it on to.

Seem to remember the prices were a little bit lower within 15km then too.

I know, exactly. So basically what we do is we take this then through to. Oh, that was an interesting experience. I've once again done $500 million.

No suburbs for $500 million.

Apparently not. So what happens here is we go through and all of the suburbs that fit that criteria come up. So we know the kilometers from the cbd, we know the median house price. If you don't know where a particular suburb is, you can go through and it will link through and give you an idea of where that is as well. So very interactive. Great little program. Well, we think so anyhow, don't we? So I've now got this whole list of suburbs that I want to do. So what I've done is I've collected those suburbs and I've actually done them alphabetically. So that's going to be really easy to go through and find the suburbs that are on my list. So to give you an idea of what I've done here is I've gone through and I've said Boondale is on my list. And the next one was.

We can play the pronunciation game.

Yeah. Oh my gosh. Jamboree Heights. I reckon that should be a suburbs against the clock. Really weird names in Queensland. Kedron, Kepera. So I'm just here and I've ticked these. So Oxley, Cinnamon Park. Now how nice does that sound?

Yes, smells nice too.

Stafford Heights and Virginia. So basically what I've done is I've gone through and I've taken those 37 suburbs. If they don't appear on the list, because Gaythorne, for instance has a purchase price of $650,000, they've been automatically excluded. So what this software allows me to do is just click this and take these all through to the next because.

We'D sit down median.

And now just for those who've been playing around this and the students Ultimate Guide to Renovation and the workshop, past alumni, what we've done here is we've actually created almost a. What would you call it? Digital.

Digital dot map.

Digital dot map. So we've said what are the surrounding suburbs here and how do they compare to this suburb? So we're actually looking at possibly, you know, the closest suburbs. So 11 case, the CB, CBD 500 5011ks, the CBD 493. So it's actually a higher median than the suburb that's 13.2. So this is essentially the ripple effect, digitally done.

So the blue suburbs, the suburb we've chosen and the ones underneath it, immediately underneath it are the surrounding suburbs.

Yep. And just out of interest, we've got the one year and the 10 year growth here. So they're standard alone, median growths over that period of time. So over the last 10 years, on average, 3.7% growth year on year. But these three and five year growths here are actually cumulative. So there's been a total of 10% growth in the three years. Just in case you've got some question about that. Now I'm going to move through this kind of quickly because I told you I have a set of parameters and the filters that I put in place. Now I'm happy to maybe be a bit lenient at this stage because we know that we're 15Ks and we're looking at 550,000. So I'm going to push the purchase price up a little bit. I'm happy to take a 10% lower percentage of renters or sold by date or yield into account.

Lorraine's heckling us for Newcastle and Central coast.

Hey, Lorraine.

Okay, so actually we might have some news for you later, Lorraine.

Yeah, just wait. Lorraine, you're going to be very excited about what we've got coming. Okay. Percentage of renders 24.9, 24.2. They are not on my 30% list and we talked about that downside just then. We're then 24.5 not on my list. We're moving on. 40.4. Pretty happy about that. I had said 108 as my sold per year so I'm pretty happy about this. 4.22% was my rental yield. You know what, I'm going to let this one in. Anyone who's been on our one day workshops know that I would exclude that but I'm being a little lenient tonight.

And it's good that you can't see the name here, isn't it?

Yes. I love the fact that you can't go over there and go. But I really wanted Kapera in, you know, so you can't see the name. So here we go. So percentage 31.3 in just 100. As I said, I'm happy to go down by 10% here. So this is okay. And 4.6% so I'm happy to let that in. 30.1. Oh, sneaking in over 108. So 160 sold for the year. 4.5. Putting that one in too. 19% renders. Sorry, you're out. 44.1% happy with that.

So the black ones, guys, just to remind you of the suburbs we've selected and the last step. And the other ones are the neighbors.

So we've got 44.1. Okay. 130. So it's 100 over our 108. Okay, 4.0. I'm going to let this in. I can see Pete and Jo shaking the head going, she'd never do that in a workshop. She's so tough. 28.6. 124. 4.3. Okay, I'm just going to sneak that one in. 25, you're out. Okay, so I've got a number of suburbs here and the big reveal. Let's take them across to the final look at this. So we've got.

Lorraine's just asked where are you getting the public housing data from? Originally from. It's from census but it's via Ripe House.

Okay, got it. Jab. Jab to you too. Thank you. About people sending funny messages in chat here. So we've got, hey, this is good. We have now got five suburbs that have come up that are very close to our criteria. So we're talking about the criteria of $550,000 plus 10%. We're talking about around 30% down to 28% of renters. So that information has come through census. So as we know, we're like days away, two weeks away from the new census data coming out. So yeah, I like I'm gonna have a party personally but you know, it has been a long time in the.

In the coming won't go for very long. Only nerds will come Nurse unite.

I'm having my own little nerds unite Facebook group going on. I'm sure we have hundreds of people in there happy Excel spreadsheets. Everything's going to go on. We've got the 15Ks 550,000 yield of 4.22. We've gone down to 4.0. So we haven't been too hard harsh there. Well, too lenient there. And we've got the 30% renters. So this is pretty cool. So what I like to do now is I like to do a little bit of a quick comparison because we want to just analyze. Everyone's still with us one suburb tonight, so.

Oh, any hands up, We've got any opinions so far before we even look at the data, do we want to just test the water here, type in or stick your hand up if you'd like to have a chat about any of those suburbs or maybe just put.

Your inspiration, local knowledge on the ground, which is not always the that beneficial because sometimes it taints you.

Should we do the poll?

Yeah, let's do a poll. 1, 2, 3, 4, 5. How lucky am I? Which suburb would you like to investigate further? Number one, Kedron Kepera. Number two. Number three, Oxley. Four, Stafford or five, Stafford Heights.

I'll just give you those suburbs again.

So number one was Kedron. Number two, Ken Capera. Number three, Oxley. Number four, Stafford and number five Stafford Heights. So, oh, keep voting, keep voting, keep.

Coming in, keep going. All right, I'm going to close the poll now.

Ooh, interesting. Kedron. Okay, and then we've got Capera and Oxley, and then we've got Stafford and Stafford Heights. Well, let's have a look at some of the data here because some of these suburbs might be knocked out quite quickly. So some of the other filters that we have in place is vacancy rates. So we've got a vacancy rate here of 2.3%. Now, as I explained in the video, we are looking for a vacancy rate of below 3%. So the general consensus is that when the vacancy rate is 3% that the market's in equilibrium. When it comes to renters, there are many people looking to rent as there are rent rental properties. Now we actually want a little bit better than that. What we are actually after is there's more people looking than properties on the market. So 2.3, this is pretty good. 1.2. This is great. So there's a lot of demand out there. Is one of the assumptions we'd make from just looking at the top end data without going into detail. 3.9. Oxley, you're out. Two, two high. Stafford, 2%. That's okay. And Stafford Heights, where are we here? 3.5. Sorry, you're out as well. So as you can see here, we've got three suburbs, Kedron, Capera and Stafford that we would go through and possibly have a look at what's going on in that area. Now we've got some interesting information here, so let's just do a quick comparison. Percentage of renters, 44.1%. That's pretty good. 31.3 and 40%. So we've got some good rental numbers. Numbers here. Total dwellings, two and a half thousand. 2,600, 3,500. So more up here. Percentage of housing, public housing, 4.9%. 1,000. Weekly rent, 900, sorry, weekly income. So a little bit more affluent than what we've seen in Stafford and Capera. Public housing here is a little bit higher at 12 and a half and 13.9%. Crime rating across them all is low.

So how much, how much emphasis would you put on public housing in Brisbane?

Well, I guess in Melbourne I would say every suburb has public housing and it's, you know, one of those things that is not such a big deal in areas I know in Sydney, you know, when I was in the eastern suburbs there, there was public housing in area that I lived in. And then there was the public housing mascot. And you know, people always warned of not living around those areas. Yeah, I looked at one stage of buying a storage facility in Mount Isa. So the back end of the mining, people moving up there and moving things in and into storage facilities. And at that time there was quite a few people up there looking at buying a Mount Isa as investors. And you know, there was the right side of the street, there was some sides of the street that actually had public housing. And the other side of the street Didn't. So it was actually having that local knowledge was quite important and people would. Wouldn't buy on one side of the street. So it really depends on where you're looking.

Sometimes it can be a really big deal, other times not so much.

Not so much. So let's just go through. I mean this is. Who loves the suburb selector software?

Me.

Come on. I wasn't asking you. I was like put it in your chat. I just love it. I think it's wonderful. Makes things so much easier. So let's just have a look here at what we've got going on when it comes to capital growth and sale data. So we've got a bit of information here, the number of sold per year, so they're all very similar or over what we're looking at. So we have this 600 price point and to be fair, John, we did say around 550. So I'm thinking that we're possibly going to have to knock out the old Kedron.

I like the Kedron.

I know, I know.

Got some good stuff going for it. Look high income.

I know we've got people who've bought in Kedron on the call, in actual fact. So we've got Stafford here and Kapira and Kedron. I reckon this is too far over our number, but here's some interesting information that we've also pull on this area and where we were having a look at some of the comparisons. We're trying to get a feel for what's happening. So what's the primary mode of transport? Bus versus train. Loving the train amenities, transport. So obviously where there's bus there's usually more amenities. Another shopping area, few more schools here. Median age is a bit younger in Kedron than Kampira, which is interesting. So it gives us an idea what's coming on. 20% at university, so could give you an indication that they're closer to the university and there might be some share housing ability there. So once again, 20% here, 15 schools in Stafford and a lot more. Once again the bus. So I am going to. I'm going to be the person who gets to choose where we're going to have a little bit more.

Okay. Should I do a drum roll?

Yeah. From a price point of view and a accessibility point of view, I'm going to hit Kapira. Look at this.475.

Yeah.

Even if the prices have moved a little bit since we've put in this data and you're looking at this, I think this is going to be within our zone. And we are going to follow through and have a look at at it. So next step. Anyone have any questions? Comments? Hands up.

We come from RIP House.

None of this information has come from Ripe House.

Does a lot of this information come from Ripe Houses, Lorraine? Yeah, less, less and less.

But as of next week with sqm.

Yeah.

So some of the census stuff does, doesn't it?

Yeah, some of the census stuff does. Currently a lot of that. I mean all that census stuff is available and free to the public. It's just what Ripe House. Yeah, it's just the art of collating it. So they have these massive algorithms that, that go through and collate it all. So. And we've been working with Ripe House for many years.

Well, let's talk about Ripe House. Yeah, so conveniently I have loaded all of those suburbs just in case. I wasn't sure which suburb I was going to come up with into this. Kedron, Capera, Norman Park, Oxley, you can see here. So here we've got Ken Comparer, we're looking at some of the data here. So you can see here, this is the comparer analysis that I want to do. So I'm just trying to get you an idea that, you know, in Australia we've got 14,000 suburbs. By choosing a city we've got down and putting some buying criteria, we've got down to 37 suburbs. From the 37 suburbs we've got down to five suburbs. And I'd have to say I wouldn't be upset about any of those five suburbs to be on my list of.

Looking at things all with further investigation.

Here we've got Ripe House says to us there's 37 properties for sale currently there's a high number of owner occupiers. There's a very three bedroom house is the common. So we now know what the most common is, low level of crime, etc. And it does have some above average areas of public housing. So this is Capera. We get an idea of what's happening in the area. Now I just want to show you a few of the top tools that I would use here with Ripe House. So first and foremost we're talking about that 30% renters. So I'm not going to go into all these tools, I'm just going to try to get you down to maybe a house that you could buy tomorrow if this was your criteria. Just to show you how you can use this information to get down very quickly. So 30% of the area is rented. Now each one of these weird little diagrams Here is actually the smallest census block of data that they collate. So this is actually represents 200 residences. So this tiny little one here has 200 residences and this larger one here has 200 residences. So to give you an idea, that's what they do. But you can actually get the census data broken down. So we can see here owner occupiers are the green, but the renters are up here and in particular in this area. Now we don't.

So the yellow. The renters?

Yeah, the yellow.

Darker the yellow, the more renters.

Absolutely. And we don't want to be near the. We want to know where the renters are. Because if we've got a buy and hold strategy, this is what we're interested in. Now, if we had a flipping strategy. Yep.

But can I just make a comment on that before you go to flipping? Your criteria was 30% rent. Right. So it might not necessarily be the darkest areas as long as it satisfies that criteria. Is that right?

Yeah. So if I look at this, there's 41% in this area. If I look over, over here, there's 55%. Now, one of the things to be aware of that I was going to say is if you do have these very high rental areas, like we've got 55%, 48% here. I also want to make sure that I don't have too many units because I don't want to be in an area where I. My whole criteria is around these houses. And all of a sudden I'm like, oh, fabulous. I've got 50% renters just in this area. So it gives you an idea. You know how I said my number is 30%, but I'll let this one in because it had 28.2%. There's areas within that suburb that are going to be over 30%. So this is where you get down to micro detail. Just for those who are interested in flipping, your target market are owner occupiers. So you're going to look for this green area. And as you can see here, this is a huge green area, which gives me an indication not a lot of houses, but they're up in the hills somewhere. But this is the green area and we look at owner occupiers in this area. There's only 23% renters here. So this is where the owner occupiers are. So you can start clarifying. So I'm kind of interested at this moment in this area. Now, Ripe House has some sweet spot analysis and the analysis that they use is that Jacob has done a lot of looking into what streets have outperformed or brought the rest of the suburb up. Over 20 years worth of data, it's come down to properties that are within 100 to 500 metres of schools, not within 100 metres because it's too close. Parking and everything close to.

Not that close.

A thousand metres to transport and 1500 meters to shops. So he's actually created that. And we can see here of Capera, there's 18 of those 200 property kind of areas. So if we said we're happy to take all of Capera into account, there's 18 of those areas. You can actually look at these override master strategies. But you know, public housing, it might be something that you want to affect for us here. We want to have a minimum of 30% tenants. So I actually only want to be in the area that has 30% tenants. So you can see here, I've got nine of those 18. So my selected area is now reduced to nine. I also want to, you know, these percentage of units, so I don't want lots of units and I might have it down to like, you know, 20% of the. The area has units in it. So I want it to be a smaller amount. The rent, look, I actually want to have a medium rent. So, you know, let's push it up here to have the medium rent.470 income may or may not be important to you. So there's some maximum incomes here at 3,000, not such a big deal in this case. And yield. So we've said that we wanted to have 4.22. So let's go to the areas that have 4.22. So we've applied these custom kind of areas. And you can see here within Capera, there's these areas here that are those sweet spots. Now you might remember we actually have these rental areas, areas here that were quite impressive. So what I would do here, so I'm not going to go into a whole lot of explanation, but what I would do in here is I'd go through and I'd get a feel for where this area is. So if I just turn that on and off, I can see that we're down, you know, Blackburn street, we're up this street here near Barber. So it's actually this area is kind of our sweet spot, incidentally, next to the train station. So it gives us that, that reinforcement as, you know, people want to be close to that transport and that train hub. And you can here we've got buses along here or whatever that is as well. So you know there's, there's some real transport routes here. So once again we're looking at own occupiers, sorry renters and we're looking at our sweet spot area. So I really like this area here. So what would I do with that, John?

My guess is you're going to take it into CoreLogic RP data.

It's like you've done it before. So let's go and have a look at Capera. So if we go into CoreLogic RP Data Professional we just have to log.

In while you're doing that. I just. You would have done the opposite to that if you were looking at flipping. So you would have been looking at the owner occupiers. And the other thing I like to look at too is the income. So I actually would have moved the income thing on that just to have a look. I was tempted to reach over it because I was just interested to see what happened.

Let me see. I don't want any question left unanswered. How much income would you like?

What's what?

So we've got minimum 660.

We've got see there in the suburb selector software. What did it tell us? It was. What number did it tell us? Looking at the incomes.

It was on the first 960.

960 and then the higher ones were. What was Capera because. Yeah, so maybe around.

Let's.

Maybe.

So Kedron was a thousand, wasn't it?

Kendra was a thousand. Yeah. There we go.

So maybe nine.

Let's, let's maybe try 750 or 800.

Okay, let's go and do that. Okay. So I've got a minimum amount of 800. Yeah.

Yep.

Or 750.

So it's really, it's not a couple.

Of areas I'm down to.

Yeah, I'm watching your areas drop out there. So there you go.

I'm down to 820. So I've got four areas now.

Who is that? Let's have a look.

Lucky I'm still in there. Okay. That was, that was a. That was good.

Flying by the seat of our pants.

Yeah. Well this is how it works. Right. So we're in Kedron 2,799 properties. Now here's my little secret tutorial for those of you in who have purchased the subscription, monthly subscription. I then go in and set a territory now. So I have already done this for all of these suburbs just in case we were going to choose one of them earlier this evening. So the Reason the way that I actually set that suburb, and I'll give you an idea how I set that tutorial is how I set that territory is I went into Capera and I actually pulled up that street zone. So here's that tree train station and here's that zone that we just said we were interested in. Yeah, yeah. So we've gone from the whole of Capera.

Yep.

I'm still probably not pronouncing it right. Whole of Caperia down to where those, that train area was and that area that kind of reflected the sweet spot of.

See, so you're telling CoreLogic that you only want to hear about properties in there.

Yep. So we've down Blackbirds street and whatever that street is, one past Barber. So if I go over here on Blackbird Street, Blackbut street and one pass Barber. Yep. Everyone good. So this is my territory. So we've gone from those 2,600 or whatever it was properties down to 294 that are actually in that area. But we now know that we are after houses.

Yep.

And we also know we're after three bedroom houses. And then I would jump over here to SQM research and I would say, hey, what is the typical size property in Capera? Because I really want to have the typical property that the typical person wants. Now we can see here we've got 0 to 1500. So it's like 500 to 700 square meters.

Yeah.

So I'm quickly going to run in here, I'm going to put down, hey, make this area between 500 and 700 square square meters. So of those 290 properties, 89 now are actually going to fit that market. You can see here, they're on the market. 480, 380. This one's a bit cheap. 365. So there's properties that have sold. Sorry, these are the previous sol. This is all the properties in this area. This one sold in 1991 for 94,000. So we've got 89 properties. Here's a key. You can go and select all of these, these properties, put them on your watch list and as soon as that property comes up for sale, ching ching, you get an email. Loving that. But let's have a look at this right now, Right now on the market.

You could have five suburbs full of those. All those little areas.

Check it out. Right now on the market we have gone within this whole process. We've gone from dot mapping 20 suburbs, we've got all the five experts reports down to 37 suburbs. We put them in suburbs selector software. We've now got five suburbs that we're interested in. We've pulled one out because we do this for each of them. Pulled one out quickly put it into Ripe House. Now you could use micro burbs free software to have a look at where the renters are and come up with that as well. Without using Ripe House going to RP data. We've set our criteria. We've said in this zone is what we're after right now there's two properties on the market that fit that criteria. So we've got down to two property properties. Great, I'm excited. Who's going to buy one of these tomorrow? Not telling you, you should run out, but this is the process.

Let me just run that disclaimer again.

Yeah, and I mean the good thing about this is, you know, you one.

Of them's under offer.

You can go in and you can have a look at this. This property. You can see here that it's got 25, 25 photos. So you can see these ones are all bottom dated. Oh, cute. Jan 2017. There's renovation potential here. Is there pricing disparity in the street? We don't know, we haven't looked at that. But there's now here's 2013. So this gives us an idea between those two tenancies or times it's been for sale. Has there been renovations done? And the key and the importance to this is to understand when you do your own valuation report or you have a look like this hasn't sold for many a year and if we go down here we will probably find that it's for sale, it has been rented out. So it probably was a home for someone for a long period of time and has then been turned into 1997, then turned into an investment property or whatever and it's been rented out and now it's on the market, has not been on the market for many a year. We can read the all about the great location and all the information that they're going to give us. There's renovation opportunity. You could go in here very quickly, generate your own valuation report if you so inclined and voila, we have an estimate based on this on what that property should be worth. And There we have 435,000 and there's a zone, an estimated value between 396 and 474. And just a heads up, this FSD forecast standard deviation. This is the same tool CBA uses for their automatic valuations. If this FSD is below 10% and your loan to value ratio is 80%. Often they will accept the price that is on the contract if it's within this zone, so won't even send out a valuer.

So the bank would consider that to be an accurate valuation.

Accurate valuation. So there you go. That is it.

Fantastic.

So I'm pretty excited.

Do it again. Do it again.

Let's do another one. So, guys, you know, I really, just really wanted to show you, and this was just a part of that celebration of, you know, joining the two Facebook club stuff together because I think it's, you know, it's a, it's a bit monumental for us in bringing the renovator network over to the your property success club. We do plan a lot of interactive community events. We want you to check back into this Facebook page often and regularly because we'll be doing some surprise activities and.

And we'd like to, if you're doing stuff too. We've already done this already and we've got one coming in the next few weeks. But case studies, we'd love to, you know, go through your projects, talk about the numbers and record it and then play it back to the community so everyone can see. Because there's nothing better than seeing, you know, other people's projects and getting ideas and that kind of stuff. So if you want to be involved in that, pop us a line@ either janeyourpropertysuccess.com or johnourpropertysuccess.com yeah, because I mean.

We'Re here to help you guys and you know, we've got a couple of little mantras, and one is do no harm, do good. And the other one is we're here for your success one at a time. So we're committed to doing what it takes to helping you guys get to your property. Property success.

Absolutely. Yeah. Let's see if there's any. Hands up, Jodie.

Clap claps. Amazing job. Oh, how soon before the suburbs elector software gets the census data? Great question, Jody. Well, Louis from SQM is going to be providing us with that data as it comes through, so we are going to be on the cutting edge. So as soon as it's available to them, it's available to us. And you know, we've signed up to purchase that data so that you guys can get your analysis quickly.

Remember, I remember being so excited about the last starter and then, you know, a year goes by and they release a little bit and then another year goes by.

But in theory, because everyone did it online and the Servers didn't crash or anything.

Yeah. Hopefully it'll be better.

It should have come out sooner. So there you go. Oh, great. Margo. We motivated her. That's how. That's our whole. Makes it worthwhile for us. So, I don't know, should we do another Suburbs against the Clock? Just for the hell of it, bit of fun. I've been talking for a long time. Time. There's got to be someone. Is there any.

Yeah, come on, put your hand up.

Put your hand up. Come on.

At the moment. So put your hand up if you'd like to be involved in Suburbs against the Clock, and I'll pull out one of these questions here, Jane, in advance.

It's going to be really easy. You can choose one of my questions because I reckon my question is a lot easier. Oh, here we go. Paul's going to do it again. Let's see if Paul Greens.

We're going to try your mic again, Paul.

Okay, Paul, please have your mic put. Put in. You know what, Paul, if you can give me your phone number, I am going to Skype you and do this because you have been so motivated. Not now.

Oh, I was going to say another day.

Another day.

You're overestimating my capability.

John's going, how do we do all that at once? Paul Green put into the line, you know, into the chat, because you've put your hand up a few times. We've got mic.

Yeah, we just kind of. Maybe if you've got a set of iPhone headphones or something, something like that, just plug them into your computer. That might do it. But in the meantime, I'll come back to you in a bit. But. Yeah, nothing's happening. Okay. And any other Hands up. Let's have a look.

Oh, there's got to be a brave person out there. Oh, look at this. Amanda's saying, my head's spinning. J and J, I have so much great information. Okay, come on, guys. We're in another suburb. Someone's gotta be here. There's lots and lots of you on. It's gonna be fun. Oh, gosh. They've all closed down on us. All right, well, let's.

No microphone. Yep.

No mic. Okay, people, that's all right.

You know, for next time, we'll forget about Suburbs Against. Oh, here we go. Oh, no, that's. We can't. Oh, it's a different Paul.

Yeah, I know. It's great. We love them.

Okay, let's try.

Okay, well, Paul. Oh, hey, another Paul. Hello.

Hello. Hey, Paul. How you doing?

Welcome. Tell us a bit about yourself, Paula. You're an investor.

Just starting off.

Oh.

I spoke to you a few weeks ago, Jane.

Oh, there you go. Oh, I didn't even see your last name. There you go. And what did you think of the process this evening?

That's great. Really good. Thanks very much.

Kind of puts it all in perspective inside.

It does. Funnily enough, I grew up in Stafford and moved to Kedron when I was about eight years of age. So.

There you go. We could have asked you about those secret streets that people wanted to live in.

What's that? Country. Country club like, Paul? Good. Good spot. Is it was just outside the country club. Was just outside of your territory.

There's a country club in that area? In that zone.

Golf course, I imagine. Oh, yeah, yeah, yeah, yeah. That was good.

Now, Paul, are you in the. Your property Success club?

Yes, I am.

Oh, well, if you're a winner, you. You're up for big surprises next year as well. Well, so let's hope. Now what. What city will you be playing for? Well, John, you take it from here.

John, where would you like to play football? Brisbane. Thanks. Brisbane. Fantastic. Yeah. All right. Oh, James. James, picked an easy one for you.

I have sensible questions.

Okay, so you're familiar, you're familiar with the rules, Paul? Yes. Yep. So you're just going to come up with 10 suburbs in 20 seconds. And question is, can you name 10 Brisbane suburbs that are regarded as blue chip suburbs? Clock starts now. Ascot, Paddington, Corinna Street. Hamilton. Hamilton. Come on, come on.

Valley.

Hills.

20 seconds. Oh, that was so hard. I thought it was that to be easy.

Should have chosen my question, Paul. Would have got it in nine seconds.

Suburbs. Over a million dollars. Is that the one? No.

Don't give away all the questions.

Okay? Okay. Oh, Paul, I'm so sorry that you missed out. It was so close to next one. You're gonna have to practice for the next RSL clubs. Yeah, it should have been rsl.

Thank you very much.

Thank you so much for being part of it, Paul. I really appreciate it.

All right. Thank you very much. Hello. There we go.

That just makes me sad now.

Yep. And there's no. That's pretty well scared everyone off. No, the hands up. Tell you what, we'll forget about suburbs against the clock. Does anyone want to put their hand up and have a chat to Jane about what she's just been through with the. The maps and everything before we close up? Because we actually are over time already. But if you've got any questions about that process, now's the time. Stick your hand up, up and have a chat.

I've stunned them into something good to go home. Wow. I do have my mother in law staying so you know.

So you're trying to stay for a bit longer.

No, I didn't say that I was being the dutiful wife. Go home in a reasonable time and I'll get some points. Well look guys, we will wrap then if, if you don't have any more questions about this or anything else. Oh Jodie, I have a question but rain is heavy here. Jody, type it in, type it in. We're more than happy to answer your question. And the funny thing is, you know we're sitting here doing this call this evening where there are so many people who are affected in Brisbane by the terrible floods and water all the way up to prospine Cyclone Debbie. If you saw my Investors choice Facebook page, if you are experiencing any financial difficulty due to the recent rains or damage or whatever, take one less worry off your mind. The banks are set up with hardship, finance hardship call centers. Call your local bank. If you don't know the number, call us, we'll get you the number but call them and just take that worry of making that payment of the mortgage off your mind because obviously there's going to be a lot of people with a lot of damage and a lot of expenses coming up and you know, we're obviously heart goes out to you.

So while you're on finance, Paul's just got a question question here. Were you saying it's best to refinance now or to wait?

Paul, what I'm saying is that it, it concerns me that appraisal makes some more changes. I think they're going to pull back even further on that 10% cap of investor lending for banks in the future. We've seen all the lenders start moving their rates up outside the RBA banking cycle. The RBA doesn't have to pull that lever. So they've kind of been let off the hook. The banks are doing that themselves and I think that, that we're going to see the serviceability get more and more difficult. We're seeing LVRs reduce at the moment, interest rates going up, buffers going up. They're increasing. They're no longer CBA as yesterday stopped taking bonuses into, you know, consideration for income. So things are changing daily. If you do have APRA go away. Yes, Lorraine, look, you know I've got to be honest, I put my mortgage breaking hat on here and just say that I understand the concern that has been that APRA is trying to address if there is a runaway purchasing of property and people that in five years time are interest only loans going to principal and interest. They've done all of their cash flow based on 4% interest rates and interest rates of 7.5% and they then have the double whammy of starting to pay principal back because they can't then service for another interest only extension. There are going to be a lot of people having to sell properties and there will be mass flood of the market and it will affect the long term longevity of the, you know, the growth and the potential of property market. I can see what they're doing. It's just painful to have to live through it. So you know there's some underlying protection around you know what they're doing. It's just I think it's taken a little bit too far and I think we are going to see quite a few changes. So. Yep. If you are thinking about maybe is it time for you now to refinance, grab the equity that you may not be able to do. Extending to stonely periods potentially. You know, if you are worried about rates that you might want to fix some rates. I have some capacity in the next week or two. Things have freed up for me since we've moved some of the activities and things that we've had planned for March to May. So if you are interested in having a 30 minute complimentary discovery call with me I can actually, actually I might just. You can either go to the investorschoice.com website and just go to the contact form and. But I. If you want to make a direct appointment with me, I have some capacity for the few, a few appointments in the, in the next.

Yep.

Week or so. So I'm just going to put my link to my diary in there and if you want to have a chat, let's have a chat. The shortcut so. But oh to use Capera as an example. Would buying a unit in a small boutique block bring you the same growth as buying a house unit versus house purely for the fact that you may have a lower price point. Oh Ryan, great question. Great, great question. And we're coming back to you Jody.

Don'T worry about it. She hasn't forgotten about you.

I haven't even seen that question. So Ryan's question is hey, we've got down to a great suburb but you know that price point is still a bit beyond me. So I show just say I'll buy a unit in the same suburb. The biggest mistake is that you could do that and we've just done all of this analysis based on houses, basically. So we're looking at the drivers of the capital growth of the houses in the area on the dot map. The dot map, we did houses, the rental yield, we did houses. Now arguably the percentage of renters is across houses and units. We found out the typical property in that area and I'm. Can you still see my screen?

Yeah, you're still on.

So the typical property in that area is actually a house. So if we went through to the Australian Bureau of Statistics and we went to Capera, what I'm trying to find out here is how bad would that decision be if you went, okay, let's go and get a unit. So here we can see separate houses. 87% of people who live in Capera want a house. And now once again, 2011 census, two weeks time, this could be different. But flats or units, 1%.

So likely that the dwellings are going to change that.

Yeah, exactly. So there may have been to some development when we're not talking. This is 1% of the population want to live in a unit. So this is the big mistake. People can fall into going, oh, thank goodness, everyone's telling me to buy in a certain area and then all of a sudden you find out it's not the typical property. And then you wonder why you can't rent it, you wonder why it's vacant and you wonder why you've done your dough.

So you've got to do the whole exercise again for units.

Yeah, Ryan, really great question. I'm glad you brought it up because it's something that I did overlook in running through this question quickly.

So the rain is coming down at Jody's place. So she's typed in a question. How would I apply what you just ran through if I'm interested in dual income properties apart from changing the yield? So I guess it's a question related to criteria. And. Yeah, okay, apart from the yield, what would you do differently if you're looking for dual income?

Okay, so if you're trying to target areas so that you can increase your yield with a dual income property, one of the things that I think to protect your downside. So once again that risk minimization is go to an area where the council has been approving the granny flat or the dual income or the, you know, push up the house and put in a, a unit underneath the house, which is common with those Queenslanders in Queensland, funnily enough. And so, you know, I would really, I wouldn't want to be the first in the suburb to take on the council and go here, I want to put a granny flat in there. I want to have some evidence that there has been interest in, in the fact that people, people do are happy to live in that dual income kind of environment. So there's properties that have been rented. I'd be interested in finding out the council's perspective on it. So going to the local council, ringing the town planner and having a chat with them about, you know, is there dual income opportunities?

Micro burps is not too bad for that too.

Shows you the planning applications that have been going on. So you know, you can go in and you could go and find that information. I think the thing about that dual income and trying to source those areas is if that is your primary kind of criteria that you want to try to do then just pretty much hitting the market and finding A, the areas that you're interested in purchasing in B, what the council requirement is. So it might be, you have to be over 500 square meters, 800 square meters, you might have a certain frontage. Have they approved the areas in the past? So there's a lot more digging to be done but there's a lot more upside. I, you know, you're protecting that cash flow position. So I, I would say that I would get a feeling for. So John Mice microburbs, it's obviously live. I get a feeling. So if we just looked at Capera here as our example.

See that spelling is good.

They say I know I get better. I can even pronounce it now. Kieran Claire taught me how if I get down here to planning applications, you know, you can get a feel for what's happening in a build over or near a stormwater dram. But if you go into some other areas, you find hundreds of them and they're like, you know, subdivision elevating property so you actually get a feel for what's happening there. This doesn't indicate to me that there's a lot happening and there's a bunch.

Of, of reasons for that. Like that it's good to have precedent. Like when you're going to council and you're applying for Planning permission or DAs, they want to see precedent as well. So it's demand and it's a whole bunch of other things as well that you want to see precedent.

I just wanted to show you while I'm quickly here under that affluence score, you know how I mentioned that micro burbs also gives you that data of where the renters want to Live. So we've got, you know, 32% renters here. If you keep your hover over this, you can see that that graph changes. So you can actually see that yellow and green down to blue. So blue's owner occupiers, what we've seen already down here, and yellow was where those renters were. So it gives you that idea of where the renters are, you know, as an opportunity. So 58% here, over here, you know, so the different areas have different ranges.

So.

Yeah, yeah. So, yeah.

Jody, any other, other reports? There's a couple of ones that developers used, Jody. I can't think of the names at the moment, but there's a. Yeah, I.

Know I speaking to the head of marketing for RP Data the other day and she was telling me that there, there's a number of different data sources that they have that developers use to see areas that they can develop on, which means that the council has said essentially there's an opportunity in the area.

Yeah.

And I don't, I don't believe. I think they're very expensive, the thousands of dollars and I don't believe they're available to.

I know that's wrong. I think there's one called iDevelopment. Let's have a look. There's a couple of tools out there that guys use that, that run these algorithms looking at the council requirements and then they look at demand and they basically, you know, cross check all of these things to try and work out where the high demand area areas are for splitters and that kind of stuff, or, you know, 300 block or 400 block or whatever. So, yeah, so there's definitely software out there. I just can't think of the names.

Well, now we had one of the people come to our one day workshop in Sydney and he worked for the Water Board and he said that they had access to every, every council in Australia, in Sydney, to know how many, every block, how many, how it was zoned and how many properties could be built on it.

Yep.

So there is something out there.

Get back to you with that one, Jodie. Got a feeling it's called I develop, but I, but I just can't remember.

Cool. Mandy has a question. I did refinance Planning to fix 2 years for 4.44 for interest only. And just wondering, should I fix it for more than two years? Mandy, the question around fixing really comes down to your personal circumstances. So, for instance, if you're planning to buy and hold and just keep the property and not do anything to it, then Potentially fixing for a longer period of time is not a big deal. If you were going to sell in three years time and you fix for five, then there could be an economic break cost for you actually breaking that fixed loan. So it could be substantial and a bit of a worry. I mean, I've got loans at the moment that are fixed for 5 at 5.8% because I knew that I didn't want to have the upside of the, if rates did go up really high, that I wanted to be able to have some of my, some protection or something. Insurance. Yeah. And I think it's like an extra $2,000 a year. So, you know, if you look at it like that rather than the rate.

Because then you can do really strong figures on everything else because you know.

That that's night, you know. But it comes down to your circumstances. If you were thinking about buying a property, fixing the loan, doing a renovation and trying to access equity next year and all of a sudden you're with the lender that says no, we only go to 80% or no, you no longer service with us. And this is one of the reasons why being with the right lender up front is important. And knowing your long term strategy, if you can't then access those funds, you're kind of locked away and you have to move to another lender, maybe have to pay mortgage insurance and that economic break cost. So it really depends on your strategy and what's important to you. If it is a buy and hold and you just want that sleep at night, you'll possibly find that the fixed rates are a bit lower even for they're changing all the time at the moment, but lower for extended periods. But if you don't want to do anything with that property access equity for any reason or even sell it, the economic break cost could be quite high. So for instance, if the lender has sold that money to an investor at 4.44%, an investor being a big institution from you, and then you break that cost and the interest rates have gone down to 3.4%, then there's an economic break fee that you have to compensate that investor for. And it's a complicated calculation that's based on how much longer the loan has to go, what the interest rate was the day they took it out, what it is now, so it can be tens of thousands of dollars.

Great. Susan, just want to say a huge thank you to you both. It's been a great night and very motivating.

Great. Well, we're so glad that your property success Club is special invitation for you guys to join in this evening. Just to give you an idea of, you know, what we do on these calls. Usually there's a lot more questions than answers but I really encourage you to use the group. There's hundreds of people in there. They're all, you know, walks all walks of life all over the place place. We've got buyer's agents, we've got, you know, incredible renovators. We've got people just starting out, people who've trades who can give you some advice about what to do. If you've got a property you're looking at. You want to see how floor plans flipped or changed, put it up there. Let's have a chat. We're in there every single day. We're looking at it. We're here to support you and this is your club where you can come and hang out with like minded people.

Absolutely. Yeah.

So I'm going to make you all now go on your iPhone. I'm still to see how many, how many reviews I've got on my iPhone. Let me have a look. If we, if these reviews are, we're.

Gonna run through the tutorial again.

I'm gonna go through the tutorial one more time. Okay, reviews. I've gone from 29 to 29.

All right.

I'm devastated. Okay, everyone get off, get, get off this call and go and review us. I'll use the review one more time. Go in and see. Search for the podcast, find the link, click on the link, go rate and review and subscribe because we want you to hear the next great call with Couldn't review.

Listening carefully.

I know and I'm, I'm chasing down some other big names for us too. So yeah, we're, we're so proud and really excited about the 100,000 downloads and we haven't been going for that long. 500, 600 people sending it through as.

Soon as we're finished.

Okay, thanks Susan. Kisses. Great. Pocket. Look how easy it is. Write a review, make a nickname.

There you go. Hang on, I'll put these in chat.

Just to you know, just so everyone has got links to be able to know how to do this review. Quick copy them before we close the webinar. But as always guys, you know these calls are here for you. Thank you to our special guest, your property success club for being part of the call this evening. Thank you for the ultimate guide to renovation investors Choice Mortgage diamond clients for accepting these new people and, and you know, making them all feel worth welcome. Get your questions to us, once again, we have that one 1300 number that you can leave a message on.

Well, you're the presenter at the moment, so I'm going to change back to me and I'll show it just because in the hope that someone might. Actually, I'm gonna.

I'm gonna close this number down. So, yeah, so we got the 1 1300, number 76, triple 1 9. And. And we really hope that if you can't make the call and you're normally on the call, that you leave us a message. And once again, we've got questions in the club and the recording should be up in the next 48 hours.

Yep.

So, as always, guys, thank you so very, very much for being part of this evening, being part of our community. We're here for you. And once again, here is to your property. Success.

See ya.