Your Property Success Mentor May 25-05-2017

Before I do my next thing, I'll just hit these two red buttons and say, now, we routinely record these mentor calls and reserve the right to share the content down the track. So by participating in this call, you are acknowledging this, and if for some reason you prefer not to be recorded on a call, just contact our office on 1300-963-646 within 24 hours and we can easily edit you out of the call. And that's about it. So with that, I'll hand over to James Lakesmith.

Well, hello everyone. Welcome to the May mentor call for 2017. And yes, it is beginning of June. So if you're listening to this in a recording, you will probably get two for June, but it will actually be the main call, this one anyhow. So basically what we are doing today is that we're once again, you know, we've delayed this a little bit because as you probably know, last week we had a wonderful webinar which we'll have a bit of a chat about later, John. But of course, you know, let's get straight into it. As always, a big welcome to you. And if this is your first time on the call, please don't be shy, speak up and say hello and ask me a question. And as always, hello to all of the Ultimate Guided Renovation students and those of you in the youe Property Success Club. Come along and make sure that you introduce yourself, have a, have a chat, get ready with your microphones and so that we know that you're there and get ready with your questions because we are here to answer all of your calls, concerns and all of your questions here. So now these calls are exclusive to our mentoring students, the students of the Ultimate Guide Renovation, the youe Property Success Mentor subscribers, and the youe Property Success Club and Investors Choice Mortgages diamond clients. So they usually take place on the last Thursday of every month. And of course, we will be sending you email reminders a week out so you know they're approaching. And we do record the calls and put them up within 48 hours into your member section so that you can listen to them. And I think we worked out yesterday, John, four years worth. Yeah, so I had someone email me last week who said, I have listened to your voice in my car for the last two months. Going to work and coming home every day, either a podcast or one of these calls.

So age audibly.

So there you go. But then again, if you can't make these calls, I really ask that you do leave us a message on the message line. Is it still live? John.

Well, let's see.

1376.

Look, it's not there anymore.

We've even deleted it.

I was so disgusted with sitting by it all last week that I've just deleted the slide.

The number is 1376 Triple 19 or please send us a question to questionsourpropertysuccess.com and before we get to the questions, I should probably introduce that voice next to me, John, the co creator of the Ultimate Guide to Renovation and the your property success club and much, much more. The podcast in itself convinced me after a bit of arm twisting tunes that we should do it.

Well, we can add suburb selector software to the list.

Oh my gosh. How good is that? I just can't wait for everyone to have a play with that. And so, yeah, John, what have you been up to for the month?

Busy, busy. Well, enrollments are approaching again for the Ultimate Guide to Renovation obviously, so that's always a busy month. But yeah, good things planned and lots, lots going behind the scenes with the suburbselector software, as you were saying. And yeah, so exciting stuff there with. Yep. More, more areas, more reliable data, all automated, you know, like professional.

I know, it's all fancy.

Yeah, it's like a bought one.

And John had me out on a quarry site last week filming as well for our first video, didn't we?

Yeah, yeah.

So we've had it. We've had a bit of fun.

I'm going to show that in a second actually.

Are you really?

Yeah, I think I want to show the. Not right now, but in a second I'm going to show the blast itself.

Okay. Well there you go.

We should.

Okay, we sure will. So as John said, we are in the, in the throes of getting, getting ready to welcome our new students. The ultimate go to renovation, which is really exciting. And you'll probably get an email in the next couple of days asking you to, you know, spread the word as well with a few little extra tidbits in there too.

Yeah, and we've, I think we've already told everyone about the event, haven't we?

Yeah, we kind of let it out of the bag because I've had a lot of people ringing going, how do we get tickets?

Yeah, so that's, that's, yeah, so that's one of the big changes to the Ultimate Guide to Renovation this year. But yeah, more on that later.

I know, absolutely. We should probably help get these guys to help us choose a logo, don't you reckon?

That's a good idea?

We'll put that up a little later.

Yeah. Like we did with the original course.

Yeah.

So now you sent me some show and tell here.

What about your chantel?

Oh, okay, let me see. I've. Mine's. Let me see. Oh, there we go. That's what. That's what I did last weekend. I went camping. Man, it was cold.

Oh, my gosh.

It's on the.

Where are we?

This is up in past Jamison. So in between Jameson and Woods Point, that's the Goulburn river there, right up at the upper reaches.

Wow.

And that's. That's our little setup that all goes on the back of the motorbike.

Do you both sleep in that little.

No, no, that's my mate. I don't sleep with him. He sleeps on his own.

Oh, okay.

But.

Oops, that's the wrong one. So I thought this would turn out this way. Let me see if I can get the. The other shot so I can just prove that to you.

Slept alone. Okay. At least you got all my pictures.

No, I don't think it's gonna happen. All right, I'll find that later. Yeah. Basically, we take all the gear back on the back of the motorbike and there's two tents. There's another shot there which actually shows the other way and the motorbike and so on.

Yep.

And. Yeah, that's it. So it's great. Great way to camp. It was pretty cold, though, and we. We copped a thunderstorm in the middle of the night.

That's a pretty fancy campfire.

Oh, that's the seat. That's a little seat in front of it there.

Okay.

I was going to say, wow, an elevated campfire. That is really fancy, especially because it looks like it's put together with aluminum.

No. But we were pretty happy to find this great big log. So it was a one log fire.

Oh, well done.

Yeah, but it was good. But we caught the great big thunderstorm in the middle, and because you're in the mountains, it just echoes all around, so it's pretty cool.

Seems like Paul knows the spot. I've got to tell you, I've got. I've never heard of any of those areas. You keep telling me there's places in Victoria I've never heard of.

That way is beautiful. It's like. Yeah, it's like Canada or something.

Heaven's own country.

Yep, beautiful. Beautiful on a motorbike, too.

Cool.

All right, so we get some. Oh, hang on. Let's. Let me see. Maybe I've just got it hidden. Oh, there you go. There's the other tent.

That's.

That's my motorbike there.

Pride and joy.

Yep.

And there we are there. That's above Ilden on the way back.

And that's. Is that a. Like a flooded dam or something?

That's actually the Elden Weir. So it's just one leg of it. Like one of the arms there.

Yep.

So there you go.

You can tell your professional photographer there with your image in the. The mirror as well. Motorbike.

Oh, yeah, yeah. That's the Hitchcock kind of. Yeah, that's right. All right, how about this, then?

Oh, my goodness. Well, I have been ultra busy, and we decided to renovate the office. So it was of, I guess, of an age. And our landlord had said, nah, it doesn't matter. You've got a big hole in your carpet. So we started with a carpet, and you can see my fancy lamps. I had a. I had a lot of decision making out of the.

Oh, just let's. Let's absorb the carpet. That's pretty nice carpet.

I know. So I went with the tiles.

Yep.

It was interesting. They came in and luckily with the flooring was straight enough, so we. They actually pretty much just stuffed them down.

Is that lino or something underneath?

No, it was actually just a. What do you call it? I was gonna say mdf. A board flooring.

Like sheet flooring.

Sheet flooring, yeah. And it's just shiny a bit because they've painted it with the glue.

Oh, yeah. Okay.

So, yeah, so there was the old carpet. You can see between the. The doors and the new carpet. Very exciting. So that was the light that you can see there hanging in the hallway, that big, long school kind of light with the lights that were in there. So we went shopping. We had a few decisions up on our hands with the. With the lights, and we ended up going with this nice one in ikea. But you can see that there was a.

This one here, down the bottom.

Yeah, the lights. Lots of decision making.

And the fancy, big drum pendant.

Yeah, so that drum pendant. A nice IKEA light. And now we're working on the chairs. So I'm really into the. Having a bit of color in there. The chairs. Yeah. At the moment, not so much from Diana, but I'm working on that. So. Yeah, so we renovated the office, which is exciting. So that's what that looks like. And so we went with a little bit of color in there, and I engaged my husband, the painter, to come up with a few pieces of artwork as well. So that's exciting. And talking about Todd, he has been painting furiously and he's. I popped in to say hello and there's the picture that he's currently painting of Nathan Lyon, the Australian cricketer, spinner.

And even when you look at it up close, it looks like a photo. It's so amazing.

Well, I've just added a photo there that he added today, the hat. So he's working on the hat right at the moment.

Oh, because that one is. The hat is white. There you go.

So that was added yesterday. Now here's the funny thing. So you can see there, he's even got the bung finger. So you see the finger over there on the left?

This one?

Yep. So it's got the bump in it and it's got half a nail and it looks like it's. So that is his bowling finger. So when he was bowling in India in March, and he actually cut that finger and it was bleeding as he was bowling and they couldn't tape it because he'd lose the speed. So he was. He was playing with. Playing injured, as a hero does. But, you know, for someone who is so humble, this guy is the biggest head you've ever seen painted. So anyhow.

And you took that photo too, right?

Actually, Todd took that photo. Yes, I know he stepped in and took a few photos. So Nathan's popped in a few times for some photo sessions. So, yeah, pretty exciting. Todsimpsonart.com you can go and follow that if you want and see the Todd Simpson art, I think, on Facebook. So, yeah, so it's pretty exciting. So that'll be finished soon. And then on Tuesday night, I wandered down the road and spoke for property women. So property women are based in Sydney and I used to speak for property women back in like 2009 when the Renault Kings were. At first started it up up in Queensland, Brisbane, Sydney. So that was pretty exciting. So I did that and that was a bit of fun. Now the. I'll get to that picture later. But we also had. Yeah, it was pretty exciting Mother's Day this month. So happy Mother's Day to all the mums out there who had Mother's Day. I turned up to my son's school and this was in the foyer and I was just like, whoa, this is fancy. So never seen anything like that before for Mother's Day. And then I had my half birthday. We celebrate half birthdays in our house. There's a picture of Todd and I and it was also our anniversary. So that was pretty exciting. A little bit different to your picture.

We both had Files on your half birthday.

I know that's the way. In theory, I suppose you can put.

It at your half birthday whenever you like. Can you?

I've got to tell you, no half birthday, six months. Which in theory, was going to help me remember my wedding anniversary. In theory.

Ah, yeah.

However, I missed it for our fifth one. So Todd turned up with two presents this morning. I'm like, oh, two presents, how nice. He said, yeah, the other one's the anniversary. I was like, I was only five years as well. So, you know, doghouse. My son said to me the other day, you know, if you miss it again, it's like three counts, you're out. Because I missed another significant family event. But talking about mother of the year, I had a mother of the year moment.

I know where you're going here.

Scooby Doo snacks. Okay, has anyone seen Scooby Doo snacks at the. At Woolies? I have bought these for my house previously. I just have to say, but we went Saturday shopping. And navigating the groceries with children is always interesting. But if you can get past the lollies and get past the juice and you can get past the coke and you can get just the biscuits, you think, you know, this is it. This is the last real temptation aisle. And so I had said to my son, grab yourself a snack for your lunchbox. And between the tiny teddies and the shapes were Scooby Snacks. So I'm looking carob. There's a bit of flaxseed supplement. I'm going, it's all good. Throw them in. Sunday afternoon, he has some friends over. They all have Scooby Snacks. Everyone's happy. Monday night, after his yogurt and his fruit, he said, can I have a snack? I said, grab a snooky Scooby snack. And he did. And my husband had a bite and went, it's a bit salty. What do you think, Jane? And I went, yeah, it's a bit salty. And I turned it over to have a read.

Well, we can see here if we just.

And if we zoom up, it says, pet food only individual doggy bags. So that's a perfect trainer partner. I'm really upsetting my son because he'll come past me. He'll go, oh, mum, can I have some juice? And I'm like, big. Going big or going up to any tricks? Going up to bed last night, I was like, come on, let's go, let's go. Anyhow, didn't appreciate it at all. Worst mum in the world, feeding my kid pet food.

So anyhow, nothing twice before he accepts food.

Exactly. And if you'd like to see how I twist that into how to find the right property, go to the youe Property Success Facebook page. I think you'll be really impressed. Okay, so there you go. And I'm sure I did something else. Do I have more photos? I'm sure I sent photos. The only way I can remember what I've been up to is sending photos. Not been there.

Been there.

Okay, that's it. Okay, well, that was me for the month. So, yes. Had had some pretty exciting things. Did. Oh, no, I do I have house inspection photos. So I went to a house inspection photo. So here's some photos of. I did an inspection of one of the rentals that I have. So this is in Melbourne. Yep. This is the guy who has the drum kit. And what had happened here is there had been some water damage in that top right corner above the wardrobe.

Oh, we've had a look at this before, haven't we?

Yeah. So top. That's where that damage was. And so I got a guy in to fix it up. And they said, yep, they sent me the bill. They sent me the bill for everything. I said, oh, can we go and check on the work? And the property manager said, nah, Alan's a great guy. There's no need to check on any of his work. I said, oh, well, you know, I do want to go and have a look at it. And they said, okay. So the next picture is Alan's plaster work. Alan doesn't believe in sanding, although he quotes for sanding.

Doesn't believe in TR either, by the look.

No. And being a plasterer or what? Hard.

Yeah. As I said, well, this. That's actually solid plaster. So technically, that's. This, that is solid plastering.

So I thought you would appreciate this. So I went back and said, look, I know it looks a thousand times better than what it was, but seriously, I have done better plastering than this, and I am really bad at it. And. And the lady said, oh, now you mention it. And this, this, like this is. It's hard to get picture of white, but you can see that there is. There is a lot of movement there. Anyhow, so I asked them to tell me what Alan's thoughts on his professional workmanship was.

Let me guess what he said. You're not going to see it from my house.

No, what he said was the tenants were really upset about the plaster dust, so he thought he'd come back at another time when there's the room's vacant and sand it and prepare it and then paint it. But guess what? I paid for a whole lot. A whole lot.

Well, that's painted, isn't it? Doesn't look unpainted.

No, it's painted.

Yeah. So anyhow, so, yeah, a good rule there. You need to paint before. You need to sand before you paint.

That's handy.

Yeah, yeah, yeah.

And you should always sand.

Yeah, yeah.

Back to flat.

It does remind me of someone I won't name, friends of ours that painted their. They were doing their first DIY renovation and they painted their plasterboard sheets before sticking them on the wall. Oh, handy because someone had, you know, told them, you know, paint things before you put them up or something like that. So they've done that. And of course then they couldn't be plastered because all of the had been sealed and everything. So not so good. Don't paint your plaster sheets before hanging.

Them on the wall. There's a tip for you. So then you have. But it reinforces. A couple of times I've had works done and I've gone back and questioned the quote or question the invoice and it's kind of. It's like, oh, yeah, I was going to go back and fix that and yeah, it's on my list. But you've paid for it. If you don't ask, you don't get. And it astounds me every single time that I have work done. And when you're not actively managing it, it's a good rule also for managing a renovation, but often, or if you're remotely.

You want the photos, so.

Yeah, exactly. But, you know, here's the thing. You know, you get to a point where you have spent so much time renovating this property, you know, you've got it revalued, grab the equity, you've got it tenanted. It's like it's all over. And where you would have fought for $20 of saving for a tap during the renovation, some. Some tradie turns up and quotes you 650 bucks to do something and you're like, yeah, whatever. And then you don't go back and check. So I always make sure I go back and check. And I know I'm a bit of a, you know, I don't know, what do you call it? School mum? Control freak. You go with control freak. John knows me well, control freak when it comes to this, but the fact of the matter is that you need to check this stuff, guys.

Yeah, I agree. I. I think that's, you know, her assurance that, oh, no, he's a good guy or whatever, that's. She shouldn't even be relying on that. She needs to be checking up as well.

Anyhow, and he charged me $56 to fix a bolt because I wanted to be out the tenants, because there's like seven of them. Where's the bathroom?

Do we have a photo?

We don't have the bottle, but the bathroom gets really mouldy and, you know, they all shower every morning. So I've put two fans in there, put a whirly burly into the roof. And I said, look, if I put a hole in the window frame, you can put the window lock up and lock it open so you can have the window open too. So he charged me $56 to do the bolt hole. And we were looking at it and I'm like, the hole, the bolt does not go into any hole. What's he charging for? And he asked him and he said he had a look at it, $56 for him to have a look at the bolt to see that the bolt wouldn't fit in. Imagine I'll be getting that money back too. Anyhow, here's another little demonstration. These people, once a year complain the fact that they get rats. And once a year we go and find that they've filled in this whole area with garbage, usually, and different things, and they clean it out and the rats disappear. And we get people. It's not rats. It's like, oh, I think we saw a mouse come in. And it's, you know, it's just about them keeping the property in good condition as well, because, you know, one group of tenants leaves this and the next does and the next. And funny thing is, I was talking to Todd, my husband, tonight, and he said he's spoken to nearly every single one of our rental managers today, or had an email from them. He has a property over in New Zealand in Wellington, and the tenants moved out. And the new tenants moved in and complained about the tires in the garage. And they said, oh, look, just get them moved out and we'll pay the cost of it. There was 49 tyres in there.

Whoa.

And it cost like 600 bucks to move them. So. And he had got. Then got charged by the agency for removing them. He said, no, that was, you know, that's what bonds are for, fixing things up. So it's just about keeping on these people, because if you're not inspecting regularly, this can get worse. And then when you do get to them moving out, you know, you might have the Fact that you lift. Lift and let you clean this stuff.

Yeah. And if your rental manager is no good, sack them and get a good one.

Exactly. I've got a picture here of. This is some tiling. So a tile has come off. So I'm thinking I'm gonna have to pull everything up. It's really thick.

Is there a cement sheet under there?

No, it's straight onto board. So that's straight. The floorboards that are. That are. Yeah, they're amazing. So that's the next upstairs or downstairs? This is downstairs. This is hidden behind a lit. In a little hallway cupboard. A little toilet.

Good. And slightly more reassuring.

And this is a bit of water damage. So I thought people, not water damage. So damp.

Damp.

So it'd be interesting to see. So this is similar to what we had upstairs in the.

So this is solid. Solid brick home.

That's right.

Yeah.

Yeah. 1860 built.

Yeah. Yep. Get a bit of damp. So. Yeah. So if that. When you get that really bad rising damp, it is actually a bit of a pain because it takes a while to get it out. And there's a couple of ways they do it. They can either actually put a permanent barrier through, like a. So what they do is they take out like two bricks of mortar, leave two bricks, take out the next two bricks of mortar, and then they go and actually slip the thing that looks like a plastic sheet through there. It's not. Not plastic. It's a barrier. And then they mortar that up and once that's dried, they go and take every other second brick out and then they. So by the time you've done that, you've replaced an entire line of mortar between the bricks. And that then stops the damp from coming up. Yeah. Going from that place. But it's a big job.

And then you can call it a damp course.

Damn. Course. Yeah. And you can drill and inject. There's another way you can do it where they drill holes along the same thing and they flood the cavity with a kind of silicon compound. But then you've got to strip off the plaster up to about 1200 and just let the whole thing dry. So, yeah, you can. You can go for.

Well, we fixed. We fixed that about, I know, what, 15, 16 years ago. So it's gone through again. So now Alan the plasterer come. Everything.

Yep.

This might be looking at that as well.

Really? So you're getting Alan back?

Well, I suggested we probably actually get someone who has some plastering experience as well, so. Interesting. But I'll show you another. Oh, so Paul Just says, do they put fans in the sub base. Sub base of.

Yeah. Not sure.

Maybe Aidan wants to know if he missed anything. Riveting. Riveting. Last 10 minutes. You can leave now.

And.

No, we've got one more picture. And this is, this is Alan's attempt at. Oh, I don't know if you can see it there. Yeah, yeah, you can. Color matching.

Oh, yeah.

And I said, I. I said, you know, I had planned to send you through the colors that you should use. And he said, doesn't matter, I color matched.

Yeah. And I said, I just used the one white.

I said, it doesn't look like a color match to me. And they said on that, that's because the paint that was there before is old. This is new.

New.

And I went, so what did you match it to?

Yeah.

And so, yeah, Alan will be doing a bit of painting as well. So there you go. I don't think Alan will be coming back.

No, I don't think Ellen will be doing.

Yeah. And we did have an exciting visitor into our office.

Yeah.

So wait, for those of you watching.

I assume you meant like the. Maybe the subfloor or something like that. I haven't heard of if. If that's what you mean. I haven't heard of them putting fans in, but it would probably make sense. One of the biggest problems with damp and subsidence and so on is not having cross floor ventilation.

Yeah.

So not having.

And it's often nothing under these.

Yeah. And often the. When you see the telltale sign is when the ground level outside is higher than the ground level underneath the house. That's. Yeah. Under four. Yeah. So, yeah, it's. I wouldn't be. Wouldn't be surprised to hear they put fans under it.

It makes sense they would in New Zealand they put fans everywhere.

Do they? Yep.

And we had Andrew Morello into the office. So, yeah, he's a good guy. He's lovely. That podcast coming out real soon and those people listening to a recording, make sure you go and check it out because he was just a superstar. Amazing, wasn't he? Actually made me cry. Yes, made me cry.

Yeah, he was really good. And dad owns a servo up on the corner of Puckle Street.

Yeah, still there. Oh, and this is part of the Renault as well.

Sorry. Buckley street and Pascal Vale Road.

Yeah, that's right. It's so funny when Andrew turns up to Melbourne, he goes and gets a car from his dad's servo and it's one of those kind of old Fords or something that they give you when they put your car up and he turns up in these funny things. He turned up in a Fiat, though, the other day, a friend had loaned him a Fiat. And just watching him trying to fold himself into it, it's the funniest thing. He has a laugh at himself. Oh, and then we are part of our, our renovation for our office. We put our, our values up and this was pretty exciting. Well, I was pretty excited about this. Well, can you see the top of that picture? No, the. Oh, there you go. So our real people, real Renault's real results. So we're putting our starboard up too. So those people in your property success club and, and you know, people in the community who have had real great moments and we've had some people do some really exciting things recently. So, you know, we're putting as well. So, you know, hopefully your name gets up there. We want to hear from you and hear about your success and maybe your renovation or your first purchase or even, you know, doing your first inspection or, you know, you know, getting over a fear of taking some action or, or doing your first dot map. We want to hear about your success because we're here to help you celebrate along those achievement lines, aren't we?

Yep. It's kind of like the Hollywood Walk of Fame.

Yeah, that's right. I'm going to fill that wall up of success stories. I've still got. I've got like three more in there already, so. Yeah, lovely to see so, so many people heading up there too. So there we go.

I can see Damien at the top there.

Okay, so let's get on with it. Now, the call the. This evening, I really, you know, want to get that boring housekeeping out of the way. So if you are experiencing any computer problems or audio problems or you can't hear us, then there's no point telling you because we can't help you anyhow. But you can call in on the telephone. She did the head sign, hand signal, in case that could help you. It's like when I tried to talk to people from another country. I talk really loud English and I think it works, embarrasses the whole thing.

But I've seen you overseas a few years ago.

Oh, my God. It's embarrassing. Anyhow, and look, you can actually call in on landline, mobile or Skype account. And when you do have a question, put your hand up. All you need to do is raise your hand and little icon button just to let me know that you've got a question. Otherwise, and a microphone, preferably Otherwise, just put your question into the chat. Chat box down the bottom or question box down the bottom. And by clicking on that hand button, it notifies me that you've got a question. I'll unmute your line and then you just tell me what you would like to ask John and I, and we will get to it. And this call is not a tech service call.

No, we know nothing.

We know nothing. SupportOurPropertySuccess.com I'm sure they can help. That's probably us tomorrow morning anyhow. So, look, let's dive into your questions. We see there's a lot of people online. Once again, we appreciate waiting an extra week. You guys got some benefit from the webinar? We rang last week. We didn't mention it. The new rules of investing in 2017. Over 2,503 people registered and since then, over 1500 have listened to the recording.

Great.

And I think I'm getting maybe five to ten questions a day on it.

And yeah, it was really, really good. You did a lot of research and pulled it all together.

I thought, Aidan, kids wouldn't go to bed, but there you go. So I think. Let's see if anyone's got a question.

Stick a hand up if you've got a question, otherwise we'll just keep on talking.

Yeah. I'll make you choose my new logo.

There we go, Aidan. Well done, Aidan.

Hey, Aidan. How you going?

Too bad. Can you hear me?

Loud and clear.

We got you. We got you. Having a bit of trouble putting the kids to bed. Hey.

Yeah, I couldn't get it.

You should try Scooby Snacks. It trains them well. But it came late, so I missed that.

That's cool.

So how can we help you?

Yeah, I've just.

I've been trying to set up my cell manager fund to get another property investment.

Yep.

Sorry. Yeah, I've actually got it all set up. And when it comes to getting my employer to. To start putting the money into my.

Yep.

New account, I just found out today that. That that wouldn't happen because I'm a government employee and they had some kind of agreement or something that I'm. I'm working for Queensland government.

Yeah.

And with a Q. Super. That wouldn't happen until maybe 1st of July, until after 1st of July. So. Yeah, my problem was that I didn't actually.

Did. Yeah.

Financial advisor. To go ahead with this. I did at one stage. They kind of stuffed me up a bit, so I decided to go alone. Doing it through online submarines company.

Yep.

And just found out that I can't do anything about it until after the first of July. Then the Kristen government might allow us to, oh gosh, give us a choice then they cannot guarantee that. So I'm kind of stuck at the moment. Is there any.

Well, I guess. I guess the situation is. I mean, so I understand it, you went and set up the self managed super fund and there's actually restrictions about the fact that your employer can't put the funds in. But the good news is that you only have to wait a month. Is that right?

I think so, yeah. Yeah, that's what they told me.

Because the worry there would be if there wasn't that agreement. And in actual fact you didn't have a choice because although the government is probably one that should be setting the standard here, they are usually quite slow in putting things in place for their own people, as we've seen previously. So your financial planner. Do you think that if you had gone through a financial planner rather than an online kind of click and pay setup that they would have picked this up and maybe brought it to your attention? I did.

I did talk to a financial planner and they didn't suggest anything like that. They thought that it was okay even though they know that I was. My super fund was through qsupa.

Right.

And they are from Brisbane as well. But they didn't pick up on it when I talked to them about it. And I nearly went with them until there was a bit of a hiccup and then starting to take money out of my account before I actually agree with it. So I just canceled a whole lot with him.

Wow.

And then now I'm going through this problem again. But hopefully just. Just for a month.

Yeah.

Until. But I was really hoping that I can finish all this before the end of this month so I can lock in the grandfather.

Yep.

Yeah.

Yep. I guess the. Well, I think the. The thing is, you know, with the grandfathering it's around the. When it comes to self managed super funds. So I think you're referring to the fact that, you know, you might be caught out the. What I was bringing up in that new rules webinar was the fact that they are changing things with super so regularly that you really want to be able to grandfather in the ability to borrow within the self managed super fund. So at the moment you can still do that. So let's just say, you know, you've got the self managed super fund set up, you've got the Bear Trust, you've got everything that you, you know, everything you need kind of Waiting and come. It's not. The fact that they can put the money in is good. And the fact that you can show your pay slips and you can show, you know, your previous super to say that they have been contributing funds to some degree. The banks are going to accept that anyhow because you're with the same employer and all you're doing is moving funds. So a lot of people find that, you know, that kind of when they're setting things up and they're finding a property, they are in that transition period anyhow. So there may not have been the first payment that has gone, you know, into that fund, but there's going to be a movement of your money over into the fund anyhow. So I would suggest that speak to your broker or to your bank. Are you using a broker or bank? Aidan?

Bank.

Bank. And so the banks that are the best of the super funds are the ones with the offset accounts. So the ones that actually have their offset account set up and that's Macquarie and AMP and St George is pretty good. Westpac runs them through their business banking. So it's a little bit more complicated. The interest rates are a bit higher as well and so are the entry fees. But the thing about the self managed super fund lending is they did move from an 80% loan to value ratio to a 70% loan to value ratio if you wanted to have an interest only loan. Now they did that last year. So that's not new. It's only new for us investors in the residential space. And the other thing is that they want you to retain 10% of the end value of the portfolio as cash. So everyone used to kind of like max out, use all their super up. So I would, I'd say that you probably, you know, in that time period you've got another month to wait. But I'd be doing my research now and hitting the streets and trying to find out where you want to buy because I don't think it's going to hold you up too much.

Okay. Yeah. I just hope that it's not going to come to a time that they're not going to allow me to do the rollover to the cell manager fund. That would be, yeah, another headache.

And it's a really good, I guess, lesson for us all which is the fact that you know, you have to do that full research before you take on something like this. So you know, it's a good lesson to have. And I think that, you know, the good thing is that you're probably only a month del where there could be some people I know people have had their self managed super fund set up incorrectly and they get to buy the property and there's delays and just the banks delay the whole process. So in Queensland where you're based, a 30 day or five week settlement kind of thing can be really difficult to achieve when the banks have to go and have a specialized legal team review the bear trusts and all the documentation as well. So don't go and negotiate any short term finance kind of contract so because you will need extra time with your super fund. So I'd. If I was you, I'd be, I'd be using the next month to get out there and find exactly where you want to buy and start doing your research so it doesn't delay you.

Okay, sounds great. All right, well thanks for that. That's all I want.

Later on.

Okay. See you later, Aidan. All the best.

All right, thank you. Thanks for that.

Okay, Paul's got a question here. I'm in the middle of planning for my next renovation. Settlement is in early July. Should I have a depreciation schedule done now or after?

Oh, oh, Paul. Okay, so here's the thing. The budget changes have indicated from that evening, when was it? May 8th or whatever it was at 7:06pm as from that date, you couldn't depreciate fixtures, fittings and shadows of a property that you didn't physically hand over the money for those things. So if you're not settling till July and let's assume everything gets passed as per the budget proposals, then what? That would mean that your depreciation schedule would reflect the fact that you'll have the building and any construction kind of depreciation. But nothing, my understanding is nothing that is kind of like considered a fixture and fitting. Like the washing machine dishwasher they might have bought might have a six year write off period and they put it in three years ago. In theory, prior to that May date you would have been able to claim the other three years, but not if the budget recommendations or. Go ahead. So I don't, I think you've been, you've been one of those few people have been kind of caught out in that period. The really good thing is, the great thing is in actual fact though, Paul. Well, in actual fact, if pre budget, if you'd asked me this question anyhow, you don't get a depreciation schedule until you really own the property. So I've sometimes in my contracts of putting in an offer, I've asked if I knew it was an investor's property that if I could have their depreciation schedule because they've already done the work as well.

And is that all you need then, or do you still need to get your guys to look over it or.

Well, your quantity surveyors always tell you that you need them again anyhow. But, you know, but it gives you a bit of an indication what they've been claiming in the past. And you know, it gives you some of the time periods or even the renovation works or works that they've done. And if they have done work, you want a warranty insurance along with that as well. But it's like getting insurance during that, you know, between contract and settlement period. You know, do you get insurance on the property? Well, the fact is they, the other people own the property, but you would like to know that it's protected if something does go wrong.

Do you?

I do. I mean, I'm the lowest risk person you're ever going to meet. I have insurance for everything. So, you know, we go ahead and do that. But from a depreciation schedule, the really great thing is, is that because you're a Paul's low risk too, you come to the right family. The, the fact you're planning your renovation, if it's a buy and hold renovation, whatever you spend your money on is essentially going to be what you can depreciate. And the conversations I've had with Tyron from Washington Brown has been about these changes is that what they're essentially saying is just keep your receipts and you can claim those. So even the role of the quantity surveyor in that part has gone and they just haven't gone into specifics on anything. So there's so many questions in the air. But one of the things that we tell everyone to do is go and get a script scrapping schedule. You know, so when you're pulling out the old stuff and it might have three years of the dishwasher left to go or whatever, then you can claim that straight away in that year. So the question is, you know, can you do that? Good news is, if you already got properties, everything's grandfathered. But in the future, I would imagine that that would definitely come under the microscope as well.

All right, so what's the timing then for Paul with his scrapping schedule and the, and the depreciation schedule?

Well, I think it's a wait and see at this stage. I'd go to the professionals and ask them what to do once you've got the actual settlement, once you have the property, because there's, you know, you could get it done beforehand, but getting access and there, you know, to. To it is going to be a bit hard on that.

Which had to probably go and ring up Tyrone.

Yeah, Tyrone's good guy. He'd be. He'd be really happy to. Actually. I might just get Tyrone on. On in the club or something and do a quick little Facebook Live interview with him and let you guys know so you can come in. So. Yeah, but, yeah, I think anything after May really would go under the new rules.

Very good. All right, I can see you've got some logos there. Do you want me to hand over to your screen?

There's no questions.

I just thought in the meantime, stick your hand up if you've got a question.

Okay, so here's the thing. We have an event coming up. We're pretty excited about it. We spent a lot of time thinking about what we were going to call it. We're calling it Reddit anyhow. So every, every time we have the event, we're going to have a different topic and a different focus, but this time we're going to talk about showcasing insider secrets, design trends and profit innovation.

What does that mean?

I know. Well, well, 29th of July Sheraton in Melbourne. Come along and I'll tell you. But we've got these two logos and I'm really keen to hear which one you guys like. We've got the one on the left, which is the nice clean one.

Yeah.

So you can go with number one, which is this one in the white. In the white. Or we can go with the blue. Blue with number two. So want to hear is one or two. Okay. Paul says two. Everyone else is thinking, thinking, oh, we can run a poll.

We could do that. Yeah. But I think it won't be beyond.

The capabilities of anyone to actually put either one or two.

Yeah.

Paul, I gotta tell you, there's a. There's a lot of people here and they're. They're backing you.

It's easy to read. Yeah. Let's see if it might be. There was some discussion around whether one would be more gender specific than the other.

Yeah.

We had a chat today to the logo people, and they said we feel that number two is very, very masculine. And John and I are like, oh, we really like number two. What's that say about me? I like strong colors.

I think the. There's some female votes coming in for number two. Keep them coming, guys. We really, really.

Yeah, we do appreciate this. Yeah, yeah. Masculine. I know. I can see it on, on shirts and T shirts. Can we get shirts and T shirts. I don't know.

Sue is killing.

Okay, great. Jared. Mark. Oh, okay. Two. Two. Jenny. Okay. The girls. Oh, Pete. Yeah. Okay, two. There you go. Makes it easy. Well, that validates our thoughts. They are going to play with the blue a little bit because they felt the blue was a bit boy, a bit more black.

I'm not sure why they gave it to us. I know it's normally the client that gets emotionally attached to one or the.

Other, but they came back to us and said, no, we really love the first one. Yeah, okay, great, great. Appreciate your. Your thoughts. Actually, we have quite a lot of designers. Well, thank you guys. So there you go. We can go back and say we did our own focus group. They came back with that focus group and made us feel a little bit small, didn't they?

That's it.

So anyhow, all good. Okay. And so questions. John? I had a. Oh, actually can I share my screen again? Yeah, sorry, is there any questions? Otherwise I can have a whole, you know, little conversation by myself here. I wanted to show you a couple of things, so. Oh, here's me having a bit of a Facebook Live moment and I was just trying to pause myself. I always pause my eyes closed and so jump on Facebook Live. I'm going to be trying at about 3 o' clock every afternoon doing a quick little session and I'm going to try and I've been trying a new piece of software I can actually bring people on so we can all chat together and your face pops up. So if you have a webcam and you're interested, I can interview people. I have a whole little TV studio. I have a green room. I can see who's in the green room. It's very exciting. So, but I wanted to show you some of the questions and things that are happening in the club as well, because Sarah here had a really interesting thing that she talked about and she's actually been on this website, Helps Help X. And basically what she did is she put her job up and said, you know, I need some help with my renovation. And for. Well, she's got extra for Saturdays, but for 24 hours a week for room and board, she's got someone doing helping her out with a reno. So she's not paying for anything. So we're talking about. There's a woofers as well.

Yeah, woofers. What is it? Do you remember what it stands for? It's like organic farm something. Workers Organic farms.

Okay, well, that wouldn't help us much. But anyhow, so I went Ahead and look at help.

You've got an organic veggie garden.

So, yeah, basic. And I think it's very similar to the au pair kind of thing. I had friends who had the nannies and basically they. They were learning English as a second language for most of the day. And then they're putting the kids together. The kids to bed and getting them up in the morning stuff. So that was pretty cool. We had Eva here with some questions and some changes and things. And we had some things. Some people after. Some sites for mortgagee and deceased estates. So lots of stuff happening. This in particular, I got very excited about and I was waiting for thousands of comments to come and it was only me going, I'm excited.

Commenting on your own stuff.

I was going, well, I'm excited, so I don't really care. But once again, this does look like a 1970s video, right? It is the Queensland government.

Oh, is it?

But they did, actually.

I thought it was something from the Cold War.

No, they. It looks a bit like the Americans. The Americans, which I just watched last night. The finale.

Great, isn't it?

That's great. So. But this is pretty exciting because it kind of. To me, you know, I looked at this and they've just started doing some amazing things. And basically you can put a, you know, a search in. So I could say something like, I want to have a look at. In Brisbane. And it goes down to geebung. Hopefully everyone's gonna get excited at some stage here as much as I am. Look, the crowd's going wild. Not. And you can start putting layers in, so you can actually. All the information that the government has. So I could put in. For instance, what else could I put in? I could put in layers around the property prices. I can put in layers around. Let me find all the hidden ones here. See, I played with this a lot earlier. I could put in layers and I was overlaying this. I don't know how I did it, but I was actually overlaying this with things like property. So I'd go into here and then have a look at the layers that are associated with property. So I could go in and have a look at meta layers with the addresses. I could go in and have a look at the local government areas and try to put in information about the valuations. So here's the RP data or RP the title, name, lot names and things. You could put in information, any information you like. There were so many different labels that you could go to. So this is pretty exciting because I know that you can get some of this data from RP data. You can get some of it from different areas. But this I found was really, really cool. So I went in and added evaluations on and past sales and all of that kind of information. And yeah, pretty exciting. So that's all free from the government, Queensland government. Go check it out. Pretty exciting. And yeah, so that was exciting. And we've also had lots and lots of questions with our videos. Now, I don't know if you're going to show this wonderful video.

See if you can park it on the explosion.

Oh, really? Okay.

It's about 15 seconds.

Okay, here I am having a little chat. Doesn't play. So we had, yep, a bit of an explosion going.

So we should just say, well, that this is a place in. In just. I think it's Nidri actually. Do you remember what it was on the Google map I shared with you to get there?

Yeah.

And it's. Is it Nidri?

Yep, something like that.

And it's a. A quarry. That's where Jane is. It's an old quarry that's been turned into a housing estate and they've. So it's got a great big hole in the ground that they've just kind of flooded. Yeah, so it's a huge big deep like that you wouldn't want to kind of roll your car into because they'd never come back. But.

Well, I did my Churchill fellowship on how to rehabilitate these sites using, you know, just explosives. And yes, they didn't do a very good job, let me tell you. Wasn't. Wasn't happy with that. Side walls. But really interesting thing is there's a lot of comments and a lot of people and as I said, I'll get on there and answer everyone's questions personally. But a lot of people, you know, have been to seminars and they're hearing conflicting information. Should I have brand new homes and house and land packages?

Oh, yeah. And if you want to. To jump on there and say something nice about the ultimate guide to innovation that you're in, there's the URL at the top there.

Yeah, that'd be great. Go and say hi.

Video 1.

These videos will be available till the 15th of October.

No, no, I just agree with anything you say.

15Th of June and how kids. This lady said, hey, we're a bit like Russell. We're a bit like Russell. Oreos. And she said Oreos rather than Russell. So she was trying to get some encouragement. But yeah, there's some really interesting people on there. And feel free to go and have a chat and let them know about your experiences. But there's people here who are flipping and there's people who are rent festing, there's people who are buying in apartments and regionally and so some really great engagement and questions. So some questions but a lot of being information's been I guess shared on there and so you know, I know that you guys have the club to, to go back to and have chats on as well but yeah, love to see you on there and say some nice things and that'd be cool.

Great. So that's me question from Paul. He says solar system for landlords who uses and is it beneficial? So I imagine that's a solar hot water system he's talking about. Is that beneficial for landlords? Is that your question, Paul? Feel free to.

Do you have a microphone please, Paul?

Yeah, stick your hand up if you've got a microphone, Paul.

No, he said that really quick.

He was very quick.

Yeah.

I. Is a solar system. Oh no. Yes, yes, yes to Mike.

Oh, there we go. Let's try then.

Hey Paul.

Hello.

Hey guys, you're a gun. Gun on that keyboard.

Yeah, I reckon. What's your typing speed like, Paul?

Oh, very good as well. Okay, so Paul, what was the question about the, the solar system?

I've got two properties and I'm just looking at putting the matter. Solar system they've got, they install the solar systems and put a meter on it and essentially you become a power.

Company property back into the grid.

Yeah, yeah, yeah. So the landlords essentially buy the power off. Off the landlord.

The tenants are buying it off you.

Yeah, yeah.

No, it sounds interesting.

Okay. And so what's been, what's been your experience? I mean you've done a bit of due diligence on it. What, what, what have they?

Yeah, look, I'm just in the process of it now and I've been getting, I've had them do the quotes on installing the two systems onto both the properties.

Yep.

And there's a return of investment of about 1500 a year at the base level and with a, with it obviously increasing depending upon the, the tenants usage of their power. They manage it matter, do the negotiations with the real estate agents and so they will negotiate with the tenants on putting that into the lease. If it's a new lease then you can put it into the lease agreement at the start and that way then when the new tenants take on the lease they agree to the power being the solar system.

Is that cheaper for the tenants like Is the power that you provide. Yeah, it is.

Absolutely. You can provide them with between. They suggest between 10 and 20% power reduction for them, for the tenants.

Sounds good. Yeah, that's great. And so is it about. You're in Victoria. I'm not aware of this, but are you in Victoria?

Yeah, yeah. So I'm north of Melbourne and my properties are in Seymour and in Shepparton.

Okay, Good. Sunny places.

Yeah.

So, yeah. Because you'd be a bit worried putting. Putting them in, you know, I don't know, Invercargill or somewhere, wouldn't you? So, all right, so. So I get it. Right. So this is specifically targeted to landlords and Nata Go. And they do all the negotiation. The real estate agent, you pay for the investment of putting the solar panels in. And then in an existing lease, they negotiate with the existing tenants. But in any new lease, it's just part of the contract that they take on.

Yeah, you can set it up that way.

Okay. So the benefit to you is do they buy the excess power?

So my understanding, the way that I'm sort of where I'm at at the moment with my understanding is that the tenants use the power through, obviously when the power is being generated through the day, and so therefore reduces their power usage. But the power, they pay for the kilowatts that they use of your solar and then when it kicks over to the grid, then they pay the grid providers that. For that power.

Okay.

My.

It's their power during the day that's discounted.

Yeah, that's right. So I give them the discounted power during the day.

Yep.

My ultimate would be with when the batteries come on to become more efficient and cheaper.

Yeah.

Is that the batteries will be installed under those properties as well. And allow the pet.

The.

The tenants then to use my battery power that they've used, they've stored during the day. So therefore it eliminates a little bit of the grid and then to be able to then generate more income out of the properties as well as the rental.

Yeah.

And so you're charging a little bit more for this. Where's your return?

Yeah, so the return is in the power usage that they have during the day. So they will use the power that they use during the day is what I'm charging them for through the solar system.

And you. They've got a 20 or 10 to 20% discount, but you can actually take a little bit off the top.

So I will provide them if they take. If the tenants take on this system, you know, if they're an Existing tenant. You put it in there and you can say, well listen, for you to go to my system, system will offer you a 10 or 20 discount for the use of my solar.

Right.

So.

And that, that's. So if they're paying, I don't know, my understanding is if they're paying 23 cents per kilowatt from the grid system, you know, we might offer them 10 or 20% off that.

Right.

Using our solar.

And, and what's the benefit to you?

So there's a, there's a, there's about a fifteen hundred dollar a year to two thousand dollars a year of income that comes from that, from me.

Okay, cool. Sounds like, haven't seen it but I think it's definitely a great thing that you've brought up. Brought to our attention is this just. So it's not just Victoria, their matter is everywhere.

Yeah. It started in Queensland from my understanding and yeah. So I sort of, I don't know how, how widely spread it is, hence why I put the question to you guys to see whether people or anyone else is using it and what they've experienced.

Yeah. I suggest you probably put something up in the club because there's a lot of people in the club that have got a lot of.

If you're listening to the recording, stick something in the club too.

Yeah, but my membership on the club. So I'm just waiting for the tick to come up in the club.

Oh good, good. Well we'll start a conversation for you and get back to you.

Yeah, yeah.

But yeah, it sounds like a good, really, really interesting. Yeah, I love the way that some of these disruptive kind of technologies are actually looking at a niche market and plugging it to me for a time there you could put the solar panels on top of your properties and get all those discounts and they got rid of those and you know. But yeah, it makes.

Yeah and it leverages that because that whole thing is the, the battery is the issue but allows them just to buy it during the day and, and everyone wins and then they, they buy a thing at night. That's great.

It will cost about 5,000 to install the system, a 5 kilowatt system onto the properties now each and Whereas if I was to put the batteries in now we would be looking probably around about 9,000.

Yeah.

So you know, 4,000 just for the batteries alone. Roughly.

Yeah.

And but in the longer term the systems, the systems will be set up to allow for the batteries to go in.

Yeah.

And I suspect that down the track probably in three or four Years time that we'll be able to, as landlords, generate an income rated from the whole system. So we become our own.

It's a bit of a pain about the whole depreciation thing, though, because you would have been able to appreciate them.

Oh, you're making money out of.

Yeah.

Absolutely. You know, and I've always. I've always thought that just having. Being positively geared, people go, oh, well, you know, what are you going to climb back? You know, tax. And I go, well, I'd rather be paying tax.

I mean, journey.

Exactly. When you're making money and complaining about paying tax.

Yeah, it's a good place.

It's a good place to be, actually. It reminds me of. So we've just put chat, live chat onto our websites and Diana's taking it to a whole new level and I think people are using us as a bit of a Google. So I was doing a review of all the archive of all the chats during the week and there was actually a question came up about solar panels and this lady came on and said, oh, can you tell me the cost of removing the solar panels and putting them onto another property? And so you can. Dinah went away and did this research while this lady was on live chat and came back and went, oh, so this is what I found. I was like, really? So, yeah, there you go. Super Diana. In actual fact, I don't know if I've got it here because I took a couple of screenshots of the archives because I thought they were so funny, but someone came on and said, hey, you know, how much is your course renovating for profit? Which is not our course. But Dinah went away and researched what another person's course was and came back and said, oh, that course is like $5,000. Ours is this. Which one were you after? And she was like, well, you know, you're being super handy there. And yeah, so there you go. She's like, Siri, she's living, living the dream of doing good and helping people out no matter what.

I. I go to see a month at a time and then home for a month at a time. So.

Yep.

But I'd like to be able to take some of this, your videos to see with me to be able to watch and those sorts of things. Yeah, because I go into a. Oh, I go into a black hole when.

I go to see for study time too. That'd be good.

Well, it's funny, with the ultimate guide of renovation, we've had people like the. In the video you'll see in next week but we've got people like in oil rigs and firefighters. Remember, the people out in New South Wales were the. Though they had some downtime. She had the course on her iPad going, oh, I took a photo whilst we were waiting for the next rig to come in or something. But yeah, it's one of those things that I've found with my education and I mentioned that the interview technique on Facebook Live. I did a course on Sunday morning on that and that was all online. And if I wake up 5:30 Sunday morning, it's my learning time. I've got 5:30 to 7:30 where I can absorb something and then the rest of the week it's kind of like all in.

So when we did the beta testing for the Ultimate Guide to renovation in 2013, I would ask the question when we're doing the. Had all the questions and I'd say, where do you watch it? And people would cheapishly go in bed. Yep.

Yeah. Well, my iPad that is linked to the wireless hard drive that has got a flexible little whole iPad holder that slides out from the side of my bunk and.

Nice.

Oh, yeah, yeah.

They do look after you guys, don't they? Are you.

No, no. Tell us what you're doing. What are you.

What's that?

What are you. What are you doing at it for one month at a time?

Customs.

Customs, yeah.

Is it?

Yeah, I've got a couple of clients to do that.

I've got a good friend that does that.

Yeah. Up the top of the top of Australia. Yeah. Good job. Well, we have a lot of people within the course who have jobs that they can't quite talk about or fly planes that don't quite exist or. Yeah, they're top secret kind of stuff, which is kind of exciting. So. Yes. But they definitely take the material with you. And as within the club as well, you know those videos are there to have access to and download.

Yep.

So. Well, look, Paul, I really appreciate you introducing us to Matter because it was definitely not something that I've looked into and I think it's a really great innovation. And yeah, we'll do a bit of a call out in the club and see if anyone's heard of it.

Yeah, that'd be awesome. It'd be really good to see if anyone else is using it.

Yeah.

And what experience you've had with it.

And keep us up to date with. You know, we might have a month off, but you might be back in a month's time and we'll. We'll fill you in.

Well, in a month's time. I've got this Renault to do up in she. So. Oh yeah, I'm in mode at the moment to have everything ready.

Yep. Now, I was talking to someone recently who was buying in Shep and there's quite, there's some quite good price points there, isn't there?

Yeah, there is.

I mean the yields there and however, the growth is not quite there yet. You know, look, I'm not here for that, that, that growth just yet. We'll get these two properties sorted out and then we'll look somewhere for growth.

Putting a growth one in so your total portfolio is balanced. So it's an interesting conversation. I had this chat to someone yesterday and they were saying, I only want to have growth but I don't want to pay too much, you know, and I don't want to have the, the huge cost of my total portfolio. And I was saying, well, you know, people get really married to the fact that they're positive cash flow or their negative gearing. And they're not strategies, they're just ways of holding properties, you know. And you know, that's why I've always loved renovation because you can put the rent up and you know, minimize that, that cash gap as well as creating equity that, you know, you have more value in the property going up in value at whatever capital growth you've got. But, but you might have a couple of cash rich properties within your portfolio and then others that are a bit of a drain on the cash flow but are the growth. So the whole portfolio is actually working in a lovely balance and I think by having these kind of. Are you cash flow positive or are you a negative gearing growth kind of person strategy, I think it makes people choose a position which they don't necessarily have to choose.

It's not a religion.

Yeah, it's not a religion.

Another style, the religious stuff. We took this place up in Shepparton as a two bedroom place and the Renault is to add the third bedroom into it. So we should get a fairly good return of the equity on it and which hopefully should springboard into the next place we're hoping to sort of look in somewhere in the northern suburbs of Melbourne next and nice because we're in between. So we'll just have a look. But yeah, we're doing. Trying to get my head around your little dot maps, I suppose.

Oh, it's it. We love the dot map, don't we?

Yes, I know.

Yep.

Well, you make sure that you. Yeah. If you have any questions. Once again, when you're in the club ask the questions and, and stuff. But we want to see your renovation and I want to put you on my wall when you're up to demo day. Demo day is always a celebration for us.

Demo day will be around about the 4th or 5th of July. There you go.

There you go. Celebration Day. What's 4th of July?

Yep. America day.

Yeah. There'll be fireworks.

Yeah.

Good. Demo day. Well, we'll look forward for an update from you. Paul. Call.

Okay. Thanks very much for your call.

I like it matter.

It's good, isn't it?

We're going to look for it and.

Follow up question from Aidan. What would be the best property option for to buy in self managed super fund? Seeing renovation is out of the question and can't use equity to borrow against for the next property investment.

You did do that whole disclaimer at the front and said I wasn't a financial planner, right?

I did. Do you want me to do it again?

Aiden, I'm going to put on my refer you to your financial planner but let me give you some questions to ask that financial planner. There is an assumption that you cannot renovate a property within your self managed super fund. Get clarification on this. However, the ruling in my understanding is you cannot borrow money to renovate in your self managed super fund. So if you just happen to have funds in your self managed super fund, you can use them. Now there is an.

So no one's going to come along and tell you have to put the tools down.

In other words.

No, that's right. So there is an entire, you know, is it a repair? Is it an improvement? Is it, you know. Correct. There's all this terminology but the, the thing is you can't improve. And you know the thing with super is if you try to keep up to date with all the changes, they do literally change monthly. And the way the Brisbane floods were on and no one could actually go and fix the properties in their self managed super funds. They kind of changed in a little bit bit to say we can repair damage. So there are some things that you can do. But the real key to buying a self managed super fund I think just comes down to this absolute understanding of what that property is. And that property is in a portfolio for a very long term usually to get you to a position that you're going to have some growth to retire on. So it's not a cash flow play, it is a yes, you might want to improve the cash flow by renovation.

So you're thinking about what, what you want it to look like in 15, 20 years.

Yeah, exactly. So your suburb due diligence can never be even more important. Because yes, you can sell properties in super, et cetera, but most people want to and there's capital gains tax and implications and savings and things, but a lot of people want to wait till they're into that retirement stage and get some additional tax benefits from it. So it really usually is a long term play. So having that targeting those suburb selection is just absolutely critical. There's no doubt about it. And you know, I speak to people quite regularly who say it's my first property and I'm just gonna have a go. Cause I know I could probably get this one wrong. I'm like, you don't have to settle for making a mistake for the first property. You know, I mean I over engineered the first property so I made a $275,000 profit. So I know it's possible. It's just kind of like following the steps of doing the research, doing the due diligence, hanging in there pole for the dot map and just, you know, go with what works in any market in any cycle. So if, if I was going to say, you know, where do you buy? It'd be, you know, the best possible place that you can afford.

Yep. Bit of a follow up. So is near new the way to go? As in new property?

Near new property is near new.

It's a couple of years old.

Why would I choose new in my super fund? I guess there'd be less maintenance if you're planning on holding it for longer. Most people who do have a buy and hold strategy do have that 10, 15, 20 year plan anyhow. And as you saw, you know, after 15 years my damp course didn't really work and had to be fixed again. So you know, and you know when you've got five to seven people using a bathroom, you have to update the bathroom every five to seven years rather than, you know, every 10 to 15 years. So there, there is that kind of wear and tear that you might be up for. But you know, I still think that renovation is possible. So once again, check with your financial planner and maybe not an online one, I don't know. As long as you're not borrowing for it, you can increase the cash flow and you can increase, you know, if you are adding, you know, $2 for every dollar you spend and you spend $40,000 on the renovation, so the value of the property goes up by $80,000, then you've got an extra $80,000 at 5% growing for the next 20 years. Years. So, you know, you've also pushing up that equity position or bringing, you know, your retirement forward. So you know, I still think it's, you know, I know that there's, there's always been that argument around depreciation of having the newer properties but often the newer properties are in newer areas and there's nothing to a whole lot of.

Other things against them.

Well, yeah, they don't have anything to differentiate them from each other as well. So you know, you're at, you really are at the, the market's whim.

Great. Anita's got a question. I'm a full time mum and I want to start creating a property portfolio. At the moment I can only put aside $30,000 to start with. Can I start on a low budget?

Yeah, good question. I think the thing is that there's always a position to start at any budget and what you can afford and a lot of people are either you usually restricted by one of two things. You're restricted by the deposit you have or you're restricted by your borrowing capacity. So you know, you might, your family income might be such that you're, you know, you can borrow a million bucks but you've only got $30,000 to start with. The biggest pain is going to be the stamp duty that you have to pay because that's just a cost that has to come out and is going to take from your, your deposit. So you know, one of the things, I was just talking to Lisa, my senior broker this afternoon. The New South Wales State government has just made sweeping first home buyer stamp duty savings and pretty much getting rid of stamp duty for first home buyers. So I was saying to her, hey, who's on our pre approval list who you know is being curtailed by the deposit because they have to allow for stamp duty? Let's go back to them and let them know that in actual fact, you know, they've got a bit more to be spent more on their kidding which means that they can you know, possibly, possibly afford a better property. So you know, it's about kind of being agile and movable and you know that. And we had a similar thing down here in Victoria. There were some, some first home buyer incentives that came about. We were working with a young guy who apprentice who had to buy his first property as an investment. And then when this came about he was going to have so much more to be able to, to put towards his deposit that he's now converted into a home. It's going to be a home that he's going to buy. So you know, I think it's about being agile. So if you're talking about, you know, if you can't, if you're a stay at home mom and I'm assuming that you might be kind of married or stuck to your. Well married maybe but stuck to your, your I was a mum without being married. We did everything wrong. Bought houses. Bought houses. Bought houses, went oh we've got a baby, what are we supposed to do? Oh get married.

Yeah.

And then I forgot the fifth anniversary anyhow. So yeah but yeah, so you might be. I'm not going to say smart, stuck or married. I'm going to say you are embedded in a house. You're going into a, you've got a home so you're looking for an investment because if you weren't looking for a home you could potentially have the first home buyers grants where I was going and you could potentially optimize that in whatever state you're in. But if you're looking for an investment and you are linked to that $30,000. One of the things the New South Wales government did also was take away the stamp duty incentive incentives on first on new properties for investors. So there was some stamp duty for new properties.

So that's now gone in New South Wales.

In New South Wales, yeah. So some big changes came out today. But if that's the case for you Anitha and the $30,000 is going to be all you have, I would say leave 10,000 of that for the stamp duty and for the closing cost costs, et cetera, conveyances et cetera and pest and building inspections. So you've got around a 20% deposit as an investor today with a 20% sorry a $20,000 deposit as an investor today that if you wanted to have an interest only loan that $20,000 would have to represent a 20% deposit. So we're talking like $100,000 property which don't exist easily or if they do exist they don't usually have the growth characteristics. You could buy them in mining towns in Tasmania for you know they're giving away them at one stage 50, $60,000. You know, high rental returns but huge vacancies and no growth. But so you could buy in that price point or you probably going to have to sacrifice and buy a principal and have a principal and interest loan with a 10% deposit and that means that you're looking around that $200,000 price point. So we've had people that, we've celebrated their success recently who've Done that up near the Victorian border. Lady I was speaking to has just done that in Shepparton. There's people who are doing that in different areas. So today. Oh no, it's an embargo on that.

I'll be finding a good regional and doing a dot map.

Exactly. So. But there is some areas. Look, there is. I got sent a pre release for media release that's coming out tomorrow, the 2nd of June from RP Data and they actually go through and they list the most affordable houses, house prices and unit prices in every state. So I was doing a read through of those. No surprise that most of those are 40 to 70ks out from CBD major towns and there were cutoff points also on the minimum price as well. And I think it was around 400,000. But this for people who are looking in that price range, look for that, that press release tomorrow. But the thing is there are properties available out there and we just heard from Paul who's buying Shepparten and there's some good rental returns up there as well. If this is your one and done and your only stake in the future for property investment and you want to make it really work for you, then cash flow is good to help you hold a property. But it's going to be growth that is going to get you to be wealthy when you retire and you sell that property and have some cash. Cash. So if this is one and done, I would kind of say hang in there and save more. You know, an extra $10,000 is going to mean, you know, $100,000 property, a $300,000 property, not a $200,000 property. So my thoughts would be, you know, hang in there and save a bit more.

Very good.

Hope that helps.

You've got a few questions there. Have you covered any of this already?

No over here, but I did. Can I just bring up a quick thing?

Do you want to come in?

Does anyone have a.

No, thank you. Susan.

Ethan, is there anyone who's got a question? Otherwise I'm just going to ramble for a little bit.

No hands up. So ramble away.

Perfect. So I was speaking to a lady on a discovery call yesterday and over 60, had planned to keep working for a longer period of time. Had a property portfolio and a really great property portfolio and she just got to a position where she was her interest only loans had just moved over to principal interest or just about to move over. Now this is where we're talking about that grandfathering last week and the new rules of investing after five years, five Years. So she bought them and thought, you know, after five years I'm just gonna roll them through another five years or refinance to another bank, et cetera. Now circumstances change a little bit for all of us, but circumstances with the bank and APRA and ASIC has changed quite considerably. So she can't roll her interest only to another interest only period. So she's now had a positively geared portfolio paying for itself set and forget quite a, you know, good properties doing their thing. And she is now being hit up for an extra close to $3,000 a month in her payments. So now that positively geared portfolio or neutrally geared portfolio is costing quite a significant amount of money. So that's the implications and she's talking about which property to sell and whatever. But you know, that's the kind of implications that we're seeing about something that seems as insignificant as, yeah, it's going to go from, you know, banks don't like interest only anymore. APRA said that we have to bring, you know, the interest only loans down to 10% of the loans they write. But there's so much more significance. That means that people with portfolios are going to have some problems. So as I gave you a heads up last week, Westpac and CBA, CBA on NetBank still allows you to convert to request an extension of interest only to the maximum that they allow you, which is usually 10 years. Years. So Westpac I think only allows for 5 years for homes and 10 years for investment. But you know, and the others, you have to be completely reassessed, which is the pain. But it was funny, I had some, I caught up with some mortgage brokers during the week and actually at that property women talk I spoke at and one of the brokers said I learned more about what was happening to the changes in banking from you than I learned from my, the BDM's telling me and reading all the posts every day. So it's just so hard keeping up. I don't, I don't know how, I don't know how people are finding their own loans to be, to be honest.

Good to hear from you. She says we just rang our back and extended for another five years with St. George.

Yeah, exactly. So get on there. St. George is obviously part of Westpac. Get on there. And if you're in Victoria, bank of Melbourne is exactly the same as Central George. Speak to your lenders and try to get that extension because it could just be something that you might be three years into a five year interest only. I'd be Extending as much as they'll let you extend it. And Lorraine, your first loan was probably a five year interest only and you've just got an extra five years. So. Fabulous. Once you turn over from principal and interest, it's a whole lot harder to go back. But not being able to hold your portfolio for a couple of years to get you over to when you retire and then sell, that's, that's a real shame. So buying, you know, selling before you're in a different tax regime.

Yep.

Now Lorraine, do you want to, do you want to fill us in what you're up to? I think you've just done a quick little Renault, haven't you?

Okay, let's do that.

Is it ever going to change this? Lorraine?

Go on the right. Let's have a go here.

Let's see if she'll talk to us. Hey, Lorraine, how you going?

Very well, thanks.

How are you?

You're on my wall, you know. Well, thank you, Jane.

Thank you very much.

Every time I put someone's star up there, we have a little celebration in the office. But I should actually tell other people that they're on there too.

That's very exciting, thank you.

I heard you'd gone through a bit of tough time family wise. I'm sorry to hear that. But you turned it around and did a renovation instead?

Yeah, we've coming back from visiting mum in hospital, my brother and I decided we'd do a bathroom renovation on mum's house and surprise her. But it's been a hell of a problem. God, we've had some trouble.

So what went wrong? What was it always sounds good in the car conversation or over a bottle of red wine.

But what happened, you know, like taking it and taking everything out from the bathroom was done in a day. A tiler was the main problem. A Tyler agreed to the job and three or four days into after agreeing he, he said, look, I can't do it, but I've got someone who can do it for you who went in there and oh my God, you would not believe what he did. He, you know, a full size tile, a 300 by 600. He cut, he cut the, to lay the first tile on the, on the wall. He cut it in half.

And that.

Was at the bottom. So we have a half a tile on the bottom and then a full tile, A full tile, full tile all the way, you know, all the way and just, you know, tiled around a window. And as we went in to visit and have a look at it the first night, we sort of touched it and the tile fell off and.

You.

Know the bathroom that was supposed to have been done in two weeks has probably been about four and a half.

Oh goodness.

Which then we decided we'd paint the house.

Oh my gosh. Is that because your mum was in hospital for longer or were you going to start doing that around?

Okay, yeah, no, no, mum was still out and we just thought, you know what, we might as well do something while she's away. So let's paint the inside of a house.

So very, very easy thing to underestimate painting a house.

Yeah. Painting always seems easy from, from this side of it.

How hard can it be? Open the tin and do a bit of this.

Yeah. And so what?

Yeah.

How long did the painting take? How big's the house?

Oh, we're still finishing this weekend.

Hopefully we'll let you know.

You're only doing it, you're only working on the weekends, is that right? Yeah, yeah, yeah.

Everyone's pitching in like brothers and husbands and everybody's pinching in to do it because it's, it's just send it up. But we can all only do a few hours here and a few hours there but you know it's getting done and it's great. We're busily trying to also look for another Renault.

Perfect.

I have to say.

God, the market is so hot anywhere on the central to Newcastle and you know people say, you know, it's hard to get loans and everything like that but I'll tell you what, there's that many people out there buying.

Yep, yep. Who've been.

Absolutely. Yeah there's a lot of people.

They're buying in a little, they're buying in a little frenzy too because they know soon as that pre approval they have lapses they won't be able to get that back again.

So Krishna says don't say that about painting. I'm about to start. It's. I saw my neighbor start at the start of summer. He said oh I'm going to paint the, the whole house. And I went oh this will be fun. He just finished last week.

We should be just doing a little photo shoot. Well Lorraine, I mean spray gun.

Yeah.

Good on you Paul.

Yeah, Paul's gone for a spray gun. There's Brad. Good on him.

Yeah, I'm still cover up is all I can say.

I can't tell you the number of arguments I had with Todd over the fact that it was one coat ceiling paint and I thought that my one coach should have done it and he's like it is not the standard we complete to. I was like, no, it's Dulux.

It says it on the tin.

That's like they promised me. But the worst tiling I'd seen as it still astounds me is mosaic tiles where the guy peeled off the tiles, off the backing and put them on individually. You know how you can just lay them individual. I was just like, oh my gosh, what are you doing? And it's like, these jobs are really hard, they take so long.

Oh, you wonder how they get a job actually.

Exactly. It wasn't my Renault, I'll let you know. I was visiting someone else's, but. So Lorraine, for those of you who are new, Lorraine's done a couple of flips. Done when? Well, in actual fact, you kept the property with your daughter, didn't you?

Yep, we've kept one, flipped one and onto the next.

Perfect. Perfect. Well, I.

Any hints on how to find something in a hot market?

How do you find them?

That's hard. Look. God, that's a really good question. There is some. You know, the easy answer, and I think it's a little bit of a rip off of an answer would be, hey, get a buyer's agent because they see all the off market opportunities. And the reason I think that's a bit of a rip off because it's kind of like a. Yeah, well, if you've got 10, $15,000 to invest in that, well and good.

And always do your research. Don't let them do your research for you.

Yeah, do the research and then tell them where to go.

Tell them the ends of the streets, the sides of the streets.

Well, actually we have someone here who might even put their hand up and talk to this, who came to, was been to multiple ones of our one day workshops and actually gave the buying criteria to a buyer's agent in Brisbane. I'm saying to see if he's, he's paying attention. And, and the buyer's agent tried to talk them out of the streets that we'd recommended in this suburb and they kept to, kept to their guns and yeah, found a great property, went up in value. Everyone, everyone was happy.

So just stick your hand up if you'd like to have a chat. We won't, we won't name you. We know who you are.

Do you think you'd, do you think it's hard to do a Renault when you're not doing it yourself? Like if you bought in another area?

Well, I did that Renault last year in Sydney from Melbourne and I just, you know, I once again I got the agents to do the checks and recommendations for trades but I also found different trades to get the quotes to three to four quotes. And then I spoke to them, I checked their references and then the agents were fabulous. They let the people in. So I wasn't paying that 10% for the project managers but when the, at the end of every day I was getting videos and photos to tell me what had been done as well. So you know, I was kind of keeping, I mean as John said earlier, I'm a bit of a control freak. So you know, nothing wrong with nothing.

Control freak about that, that's just good practice.

So I just, you know, I, so I did it remotely, I did it remotely but, but you know, so as I said and I did a quick webinar for the clients of ours who had pre approvals on Friday with CBA and NAB who have got like eight, six weeks to well, no, 10 days to find a property before their policies change on them and make their 90% LVRs go 80%. And so I was trying to give some real hints and one of the ladies that I took through the area that she was looking in that was kind of near Brisbane was we went into RP Data so going to RP Data Professional which I think you've got access to and I created the territory around that, those typical properties that I was after. So we were actually after a three bedroom property on between 600 and 800 square meters. And so out of the 2,500 properties in the area it came down to about 140. We went and had a look at the and she wanted to flip. So we went and had a look where the owner occupiers were. So we created some territories around the owner, occupied streets and then that 140 came down to about 50 properties. And then we talked about, you know, become the buyer's agent. So do the door drops and say, you know, do the door knocks and do the hey you look. I'm looking at moving to the area and I'm looking for a house like this. And we have had success for quite a few of our students who have used that technique. One lady in particular did it for a mom down in Wollongong. And one of the ways you can.

Do it too if you're doing the door knock is usually just say I'm looking at a house up the street. I've been to an open for inspection. Just wondering if you can tell me a bit about the area. So you don't actually knock on the door and say hey, will you sell me the house? And freak them out. But if you just say that and hey, can you tell me a little bit about the area? Then you know, they already know that you're looking. So you know, chances are, you know, you might be able to see it into the conversation and say well if they're thinking of selling anytime soon with.

RP Data Professional you have their name, you have what they bought the property property for, you have the current valuation. And even Gabriel, we're going to share his video in the club in a couple of weeks time. But Gabriel used his RP data to do some due diligence on finding property. But he actually did valuations on every property in the street to determine was there the pricing disparity which is kind of the workaround for the renovator report. So you know, there's so many ways to manipulate that tool so that we love. So rather than pay the $10,000, maybe just get the API data professional and use the territories, do the door knocks, do the valuations and get in before the properties even hit the market. And what you can do with that too is if you go into the, Remember it's been made for real estate agents and mortgage brokers, go into the finance tab and I should just do this live, shouldn't I?

I just gotta write this down.

Hey Susan, we're coming to you. You don't go away. Yeah, I'll just. While Jane does that, I'll just. This is in the ultimate guide anyway Lorraine, but it's worth just remembering is when you're doing that suburb due diligence on an area and we recommend three months and that's basically going through all of the open for inspections, not just the houses you're interested in. Just getting on the agent's call list on the Monday and Tuesday they just get to know you and then you, you give them your criteria with all those streets that you've picked out through your due diligence like the same ones you're going to have your territory set up in RP Data for. So these are the streets that I'm looking in. And then what you find is a lot of agents are quite lazy and they don't even though they know you're interested in unrenovated properties and it matches that criteria. All they ever do is they just contact the people that are coming through the opens on the weekend or on the Thursday.

Yeah.

And so it just keeps you on their radar too. And yeah, and that's, that's I, I Reckon to me that's that kind of puts you at the next rundown from a buyer's agent. I still think the buyer's agent tend to get the best listings because what happens is when an agent is selling, if they think the property matches a criteria that one of their buyer's agent typically buys a lot of buyers. Agents, agents work for people who are really time poor and cash rich. You know, maybe they're in, you know, good, well paying jobs, but they just haven't got the time to go through all the opens and that kind of thing. So from an agent's point of view, if you can match the criteria of, you know, that, that client of a buyer's agent, then it's just being you, you can sell it straight off, get a really good price for it and when and you don't have to do any of the marketing or anything like that. So that's how they tend to treat buyer's agents. But yeah, yeah, if you can kind of get in that same head space with the agent. Yeah, you're the person to call as soon as a, you know, a crappy shows up on this street or down this end of town.

Yeah, absolutely. Be the person. You know what I was thinking of.

Doing was, you know, like in your area, like, you know, the area that you know or near you notice a house that looks really run down, you know, long grass. Find out who owns it, maybe go, you know, interest in selling.

Yeah.

Well, let me show you this finance thing because I'm excited about this. Money magazine's asked me to write an article on, I don't know, what is it? What is it? Anyhow, I was doing a search Money. It's about choose a suburb in the next 10 years that's going to go up in value and show the costs of holding that property. I don't know, does that make sense? Okay, so I, I was playing around with some suburbs today and I was looking at West Footscray. So if you have a look in RP data here, we've got 6,240 properties, houses, units, whatever. In West Footscray, if we go to houses, you'll see this number go from 6240 down to 2009 41.

So this is total, this is not just on the market or anything. This is total dwellings.

Yep. Property.

Oh yeah.

So over here and then if I went down to three bedroom houses, which was the typical property in the area, I got a little bit further down. So I got down to 1400 properties. And then if I Got to the typical land size. I could go down here and I could go, you know, 600 to 800 square meters and I could get down to, you know, so I take those out layers that, you know, are out. So, you know, 122 square meters. So you know, all of a sudden you can start, you know, putting in filter. But what I did is, and you know, the tutorials are in the ultimate guide Renovation.

But the club in the resources and.

The club in the resources. So I went and created this territory for footscray. So I actually went in and just looked at a certain area where the renters were. So because you are going to be flipping. Oh, there you go. Live chat. Chat just popped up. Can't talk to you now, sorry. But so I went up and I went in and I clicked on this, which was the area where the renters want to live. So you would be, click, you'd be making your area potentially where. So I'm looking only at a small streets here. And so that then becomes my territory. And I go up to the territory and I've got, you know, this 557 properties. I want three bedroom houses. So I can go in here and go three bedroom houses, et cetera. So it goes down again. So the good thing about this is that, you know, I'm kind of narrowing down. I can look at the sales history of the properties that are in that area. I can look at the property that's currently on the market, I can take that property that's currently on the market. I can see if it needs renovation potential. And I would be going with a great big fat yes on this. So renovation potential on this property. So I'm starting to pick up a lot of information about this property, which is great. I can then run my valuation on it, et cetera. But where this kind of really helps us out here is that if you go into this finance tab, which is once again, remember, it's kind of of like for mortgage brokers, what it does. Or you can go into this filter. It pulls up this filter and you can say, hey, as a mortgage broker, I want to target people in the area that I, you know, have my business in who have high equity and see if they want to refinance their.

Loans, which typically means they haven't sold for a long time, right?

Which means that they haven't sold. So if you have a look here, in the definition here, it says high equity, 6.5 to 8 years from the current day. So it means that they've actually purchased within that short period of time. So you can actually go in there and you can, you know, if you wanted to, you could go and change that. The, the dates range to over 10 years. But you can see here, this is people who have bought between six and a half to eight years ago. And this is typically when people want to do their mortgages again. But it also gives you an idea.

Well, they've got itchy feet to move because we move every nine years. You'll be able to see the.

So you can target that way. And if you go into here, this is what the holy Grail kind of looks like. You know, you, you pick on a property and you go down, you have a look at it and it will actually tell you that it's also for rent. So you can see that it's a rental property. So the owner, who you probably have their names here, which I shouldn't, shouldn't pull up, but the owner, who you've got their details for and often their address, and if they're on the no call list, you're not allowed to call them. But we know that this is a rental property and we know that it hasn't been on the market since 2010. But they might be feeling the pinch at the moment and going, well, my interest only loan is about to turn to principal and interest. What do you reckon? So there's some really amazing opportunities that you can use this. And I know I speak to the guys at RP Data and we constantly surprise them of what we do with their products. But you know, just looking at this and if you just, you know, don't go into the finance tab and just come back to the normal tab, you can actually put in there the sale data yourself. So you can go in there and you can say, you know, I want it so not the sale price, the sale date. So you don't have to have six and a half to eight years. You can put whatever you want in there. So that's actually really, really cool.

Well, thank you, Joan. Thank you very much.

Here to help, you are.

Thanks, Scott.

Good afternoon. See ya.

Thank you.

Bye bye, John.

Okay, now Susan has been waiting very patiently here, so let me just unmute Susan's line. Oh, it's not. Oh, there we go. Hey, Susan.

Oh, hi John. And hi Jane. Actually it was worth, I'm well speaking you. It was really worth the wait because Lorraine's question about being in a hot market really helped me and your answer really helped me. So I don't know that I need to ask much more I will let you know that we. I listened to the hotspotting Brisbane hotspotting webinar and I did the Brisbane map round about the same time. I was trying to get it ready for your webinar but I didn't make it. But anyway, I finished it, so that's good. Anyway, my husband and I we up to. Up to Brisbane over the weekend and specifically to have a look round at the area of Capera which was the area that you thought this was the.

One with Kieran Clare from. That was the one you're referring to that webinar.

I listened to that as well and that was great. But with the Brisbane hot spotting, that was the actual area that you did the most research, Jane. And we looked at the actual streets that would be the best to look at investing in. So that's what we did. We went up there and we went and had a look. We went to a couple of open homes and we went to the real estate agents, left our name with them. But it is. All of them were saying it's a really hot market now. So we could see that. Actually from the research I was doing, properties are selling in about two weeks. So we just. I got a little bit disheartened because I don't really want to have to compete in a hot market. I take my time in these things in choosing. But I just feel that you must get to that point where you're rushed in making a decision. But my question was going to be should we now should I go back into that webinar that you did on the hotspotting one Brisbane and just there are other areas that came out and now perhaps do my own research on one of the other areas. Look to just see with.

Yeah, it's a real. It's a really a tough question because John and I both looked at each other and go, when did we record that hot spotting workshop? Because we were hate. Well, I'd hate the idea that you're watching something from 2015 and.

No, no, this was earlier in this year.

Yeah, I think it was the one with Kieran and Yepera came up and a couple of others and subsequently we went up and we did the.

Because Susan, can I just confirm you didn't actually come to the Brisbane workshop, is that right? No, I didn't.

This is. No. Yep, that's good. This was done after. It was actually done after the podcast with Kieran. Okay. Because I know that Sarah kept coming up and then you did the.

We did the webinar.

Yeah, yeah. And he went to the webinar.

Yeah, yeah. So yes, the thing is, in a fast moving market what we found is like, you know, we did the hotspotting workshop there I think in March. And you know, similar in Sydney last year, you know, it was like six months. And in Melbourne the suburbs changed really quickly. So that's why we both looked at each other going, oh my gosh, I hope you haven't gone body to PERA based on this because we haven't done the research since. Because what I would encourage you to do is exactly what you're suggesting that you do do and go back and.

Do the full process.

Yeah, do the full process again. Look, I haven't seen Brisbane, some areas of Brisbane have moved a bit but I haven't seen the growth happening in Brisbane as quick as everywhere else. So the dot map and that exercise could still be right. So just validate your dot map and your information. Some other areas did come up at that time as well. So I'd also look at those. But the thing is when it's hot, it's hot. And you know, I always said, you know, I have three ways of making money and one's buy below the market. But sometimes if something has to give, that's the one that gives. And buying the below the market today at today's market price is $50,000 cheaper than it's going to be in two months time. So you know, sometimes you just have to act it's around making yourself the most attractive buyer. So in the ultimate guide of Renovation I think it's module six, the negotiation seven negotiation.

Oh, you're pushing me.

One of the things in there that we talk about and I spoke to someone at the property women meeting up and she was in the middle of negotiations on, on the weekend and she they went in with a $600,000 price and with a settlement that their people wanted. And the others had come in with a six. You know, another who they were in competition with had another price but like 120 day settlement. And the agent said oh no, you won't get it for 600. So she said 6:30. And, and the agent said oh that should get it. But the vendors said well God, if they can jump 30,000 that quickly, they've got more in their pocket. And so she kind of had shown the hand.

It's all a game.

One of the things that we teach is that it's not a did you want a yes or no to the offer? It was an either or. So did you want $600,000 with a 30 day settlement or you know, on the terms that they want. So 600,000 is what obviously the buyer wants. So it should cheap price, but they were happy to do something that the vendors wanted compared to, hey, look, we'll pay you your 630, but we want 120 day settlement and we want to have access beforehand and we want to start the renovation. So it's on your terms.

So it's a, that means you're opening up all sorts of lines of negotiation that aren't just around.

Right.

So it's around the terms and then from there you start to use that diminishing concessions where you, you, you come, you seemingly arrive at your end point, but it, it's completely arbitrary. So they've just jumped 30 grand in price. And the, and the agent, and the, the agent saying to the vendor, well if they've just jumped 30 grand, there's, they've probably got a bit more on the kitty.

Hello.

Yeah, but if, if we had arrived at that same point 30 grand more but by bids of the first one was 10 and then it came down to 15 and then the next one was 12 and then it came down and so, and then you, yeah, you got to that same, that same 30 grand but you were down to ones in the end, you know, toing and froing. Then they'll say, oh well that's, they're exhausted. Yeah, exhausted their funds. So it's, it's all, it's all a game but you've got to play it. And I think the, the way to do it because so it's amazing how many people are just hesitant to do this. They just say no, let's just buy it. Or they just. And you've got to be willing to let it go.

Yeah, it is numbers. If the numbers don't work, the numbers don't work.

And also do it with a smile on your face. Just treat it like a game. And yeah, you win some, you lose.

Exactly. But I know it's frustrating, especially if you put the time and effort and let's face it, the money into flying somewhere to do it as well. It can hurt. So, you know, I think, I think doing what you did is all that research beforehand I think is really important. But you know, going also in doing the go back and you know, don't waste your time, do, do what you need to do in validating the suburbs you want to go to, but get the relationships with the agents, you know, use RP Data professional. I think Aidan said how how much is that? It's 150.

150Amonth.

150Amonth. Unlike other providers, we let you turn it on and turn it off per month.

Yes.

And it's cheaper and, but you know, it's, it's a cheap investment for you to go and have the list of targeted individuals that you need.

Are you looking for the hot Splitting it' club? It's in club.

Oh, is it? Yep.

It's not public.

Okay, so someone's asked for the link to the Brisbane hotspotting webinar, Jenny. It's in the club in the resources section. So it's not public anymore. I was just looking on YouTube to see if I can find the video.

Yeah, some of them we do.

All right.

And some of them we do that they're available for a certain amount of time and then they go to the club.

So that's the one that you've already seen. Yes, so. So yeah, I think the, the thing there is that, you know, you're not wasting your time. You go and optimize the place that you're looking for. People are in a bit of a frenzy at the moment because the pre approvals are expiring. So be aware of that so you know, you can get caught up in it. The thing is, the market's not really going to go away. So you know, if you're not tied up in, you have to buy now because of certain market conditions or you're borrowing conditions, then you know, wasting $600,000 on a property that's not going to get you ahead is not worth your time. So you know, take your time, do the research, do it right and you know, you'll get there in the long run in finding the right property. But don't let it get you down.

No, oh no, I wasn't. I mean it was really just a look and see to go up there anyway because we just wanted to. We're still working at our strategy of something we want to do and we just thought, well, we'd have a look around and see and it was, it was great. We really did enjoy it. And my husband actually said to me something that you had just mentioned about doing letterbox drops in regards to the roads that you felt were the best to invest in. So yeah, we were considering to doing that, but no, that's great. Thank you very much for your help, really appreciate it.

Krizia, I do have a question for you. I've actually you've sent me a couple of emails as well to answer questions Right. Yesterday. Yes, yes. So I.

No, no, not yesterday. No, no, I have in the past and you've got back to me or Diana got back to me. But no, I haven't got anything outstanding.

Oh, okay. Because I pulled up some questions around building inspections. No, so they're from June. Okay, there you go. I was just being ultra, ultra excited and trying to answer your question. Okay, there you go.

Thank you.

That was me.

That was me. Yay. Okay, so all right. So okay. I have answered some questions. Okay, good. Oh, thank you so much. Bye.

Okay, bye.

So it wasn't Susan, it was Krishna.

All right, well we can do that one.

Well, let's go. I was thinking so, but now I'm looking. Yeah, 1st of June, that's today's. Krisny, are you actually got a microphone so I can open that up for you? Because I, I, I pulled these in and thought, oh gosh, it's going to take me like a long time to type this, but hopefully she's on the call tonight and I can just answer a question.

There we go.

Hey, Chris here, can you hear me? Yeah, you sent me through a couple of questions and I thought, oh, I'm going to pick John's brain on that. And then I thought, well, I hope you're on the call because I'll record it and send it to you if not. So you've got, you're in an interesting situation at the moment.

Well, well, interesting. I'm renovating a property in Castlemaine and we're coming towards the end now and Northcote North.

Sorry, Northcote, North Castle Main. Yeah, that's what they call Castle Maine. Yep.

Oh, is it good place? Well, when I say, when I say, yeah, it's a great place. But when I say when we're coming to the end, it's like there's a lot of work still and, but what's happening now? The builder came up to us or came up to me and he said because it's an old property and they were finding all sorts of things and he said to me, who the hell was your inspector? Because you know, when I look at the property report, because that was the first time that I've come across, I've never really seen them, I'm not familiar with them and you know, it's an old property and he just, he just identified one rotten stump.

Oh, okay.

And really, really now when I think about it, there must have been more than one rotten stump. And why didn't he, why didn't he check further, you know, because the the guys had to change quite a lot of stumps.

Yeah.

And is that after they pulled the floor up or. I mean, there's an. I don't know the circumstances, but there's an argument sometimes when you're in school.

Yeah, it was. It was partly. Yeah. Partly when they were doing the bathroom because they had to pull. They had to pull the floor up. And it's a weatherboard house. And also that all the stumps around the. All those stumps around the outside were rotten and somehow, I don't know how, but they found some more. More through underneath, like more in the middle of the house, too.

You certainly should have been able to see them outside of the property.

So I can't work out, you know, now. Now I'm thinking, looking back at the inspection and thinking, you know, what he charged. You know, I think it's almost. It's almost. I think it was from memory, about eighteen hundred dollars.

Wow.

And it was.

It was $1800 for an inspection.

Yeah.

Aki Centre used to be around 6 to 7.

Yeah. And I know we have someone we recommend, Taina Howden. I think he's. Oh, gosh, 450 or 500. But the good thing about him is he actually gives you a bit of a thought on the cost of repairs, too. And obviously that's Melbourne, but not Castlemaine, but yeah, that sounds extraordinary. Extraordinary cost for obviously not the result that you were after. No. And it's funny she said that because Jean just messaged me on Facebook as I was walking to the studio this evening saying, I think there's a. Do you have any, like, a list of good tradies? And one of the things John and I had talked about was maybe putting together some type of, you know, in the forum type where people can actually share, you know, trades that they recommend because it's so hard sometimes to find the good ones who turn up when they say they're going to turn up and clean up and do the job. Right.

Well, I would really like to also see what a good.

What a.

A good report should look like, because I don't really know. I don't know what I'm looking for. I'm just trusting them. And I don't know what a good report should be looking like. You know, maybe after I've done so many properties, I'll know, but I don't want to wait.

With practice, I'm looking for just the big ticket items. Generally speaking, I'm thinking of the report as a good negotiation tool. So I Can use it.

Yeah, that's what we used our for.

Yeah. And then a. Apart from that, I'm going, okay, is there actually anything real in there that. That is going to hurt me? So that would be things like restopping and mains and roofs and termites. Yeah.

And I reckon had we had a better report, I think if we had a better report, we could have negotiated further.

There is actually.

I would get annoyed.

Yeah, absolutely. And I think that there's. I mean, there's a. There's a whole kind of disruption around the. The report writing as well. I think Arche center says that if someone's already bought a report within the last six months, that they'll give it to you for half price. And there's some kind of crowdfunding collaborative. You know, you put your report up on the website if you got one done recently and anyone can buy it and to help you save the price and stuff. But it sounds rather expensive even for a regional area, that report. But one of the things that I guess that you.

Okay. Zen is gone now too.

Really?

Yeah, Unless I've come back. But the last time. That was probably about six months ago.

Oh, really?

Yeah.

Well, one of the things that you might want to look into is the. The fact that the report. Walking with the inspector, they often won't put things in a report. So I would always meet them at the. At the property and say, can we go to the.

We were there. We were there and they were there. Yeah.

And could you see the rotten boards on the outside or they. It was just like a.

Well, I just. I don't know because it was my first property. So I suppose I was a bit timid as well. And I guess I was relying on him to do a very thorough job and come up with the goods, basically. And now, you know, so many weeks down the track and all things we've uncovered and everything. And some of them. Sure. Some of them you wouldn't know about until you.

Yeah.

You know, opened it up. But a lot of the others like he. On those. The outside. The outside stumps, he should have been able. He should have been able to identify more than one outside stump.

Exactly.

You know, he should have been able to identify all of them, actually, that they were. All the outside stumps were rotten and needed replacing.

It's a good lesson to be learned. And I guess that thing is about getting the competence to have the confidence to ask the questions as well and test that. I mean, you know, hopefully now you've had this learning lesson and cost Money and unfortunately. But you know, that's one of the things that we really try to talk about in the inspection and in the video. One, two, in the inspection thing, being very vigilant and we have like four inspection checklists that we go through when you're really getting serious with the properties in the Alton guided renovation. Just because it is so important to get that right up front because it can chew up your renovation profit. So I think it's a lesson not necessary. You didn't need to really have to have yourself and I wish we'd saved you from it. But it's something that you won't repeat and probably people who are listening to this won't repeat either.

The other thing is, and I'm not not saying it's the case here, what happens occasionally too is tradies can be a bit dramatic in some ways and they.

Yeah.

Don't mind kind of criticizing other guys work.

Yeah.

That's a. To make themselves look a bit better or justify their price or whatever. So just be, just be mindful of it too.

The people who do that from.

From time to time there's a little bit of ego involved and.

Yeah.

But I, I do think his comment was fair, you know, it was fair because, you know, even. And then I look at myself and I think, oh my God, how could I have. How could I have known that I've got this old house and why would there only be one rotten stump? You know, that was my opinion, but that was all after the fact, you know. Anyway, never mind. Who is the company that you use in Melbourne, Jane?

Pardon me?

Who are the people you use in Melbourne?

The gentleman's name is Tana Howden and I can get his details and send them to you. He's. Yeah, he's really. He's very keen and he's goes above them beyond the call to deliver what he can deliver, which is good. But I noticed you've got another question as well that you might jump into that.

Yeah, I just wanted to jump something in there. I use a guy that used to work for Archie center and this might not be suitable for everyone, but he would not actually give you the report because he doesn't have the credentials public liability that. Well, he's an architect, work for Archie, done inspections for ar. So exactly the same inspection. Exactly the same guy. But the. He would not give you the. He didn't have the. The insurance. So working for Archie center is fine. So what he would do is he'd literally do the inspection and then he would dictate it to you and you would write it down so there was no liability there. But that might not suit you. It suited me because I obviously got a trade background, so I knew most of the stuff anyway. But, yeah, that would mean that I would get. I think he did them for 350, an inspection where Archie center was like 650 to whatever it was. I had 700.

Oh, yep.

So that's. That's an option sometimes. But again, you don't get any guarantees or anything like that, so.

Yeah, yeah, yeah. Oh, well, there you go. But I did. I actually did get a couple of quotes and they all. They were all up around the.

Okay, it might just be that regional.

Yeah, yeah, it could be.

Could well be. Yep.

Where are you. This one.

So this one. So you had a question also about, you know, should you. For quotes for builders, electricians, plumbers, should you go labor materials or, you know, complete price? And the reason is you got Two quotes from two builders for the sake of the example. One was 50,000.

And.

What. My example is this. Like, let's just say I'm getting quotes in, and I've got two builders at builder A and builder B. And let's just say they both put in a quote for 50,000 each. Right. And of course, you know, you know, they say what they're going to do and, you know, but they tend to be very general. I find these quotes, you know, we'll replace it if needed or whatever like that. So my question is, okay, like, the reality is one of those builders may just say, okay, we're only putting away, you know, $5,000 for materials. And the other builder might actually be putting away $10,000 for materials because that. This whole question came up as I was progressing through this, you know, the renovation of this property and everything. Everything was fine, fine, fine, you know, and then suddenly the builder says, we need to get more. More insulation or more stump or something for this particular wall, and you're going to have to pay for it. And I just thought, that's really weird. Why suddenly they've been paying for everything and we're suddenly having to pay for it.

They didn't allow it.

Well, I spoke to my friend who I'm doing this property with, and she said to me, she said, they probably put a budget aside for materials, and now they've run dry. And that's when I thought, well, how much did they put aside? Like, how much? And we don't know because we got a general quote from them. And that's when. Then my Next thought was what my next thought was, well, how do we know whether they only put, you know, a tiny percentage for materials and the rest they keep them for labor? We don't know. And that's why I'm asking. Is it a good practice, I guess, to ask at the outset when they put a quote in, to separate the labor from materials so you at least have an idea what they're. What they're going to put in towards materials and whether you think it's a decent. And you can talk through that, you can talk to them through that and then work from there as to, okay, if you run out, what do we do then? Or how much, you know. You know, like there's more questions you can ask anyway.

Yeah, definitely, I think. Yeah, yeah, that's definitely what you need to do. So it's. It'll change from builder to builder. Exactly how much detail you'll get out of that, but at the very least, you need all of the.

Interesting thing, John, the interesting thing was that, you know, when I was getting quotes from electricians, plumbers, builders, they were all doing the same thing. They were all providing general quotes.

Yeah, A builder's.

Final number. Sorry, not builder, the carpenters. The final figure was always a combined labor. You know, it's always labor.

And so you're talking about a proper builder here or just a couple carpenter. Yeah, I see. Okay. Gotcha. Gotcha. Yeah, absolutely. Then there's no problem at all with builders. It's a whole bigger question. There's PC items and there's also. That's where I thought you were going. But tradesmen. Absolutely. So get them, get them to separate out their material quite exactly for what. What they're doing and the, and the longer you can take. Be at that quote stage with them and the more information you can give them and, and you know, and the more thorough you can be, you know, dotting every I and crossing every T before you sign the contract and making.

Sure everyone's quoting on the same thing.

Yeah, that's right. And one way of doing that is doing it once. One way of doing that is doing it once with the. The initial quote. So we're going really hard with one. One quote. So you get the first carpenter in, be really very thorough with them, and then you've got the template to use for the rest. And then what you have to do, and we have to do this all the time developing is you go back to the other plumber and you say, are you allowing for this, this, this, this. And then he. And then you might find he's. He's actually got a couple of things on his list that went on the first guy's list. So then you gotta go back. First guy. And. Yeah, so that's just the.

I did that.

I did that. And they, then they started to get resentful if they corrected it once. And then I still. There were still errors. There were still things missing.

Yeah.

And I went back to them and I said, look, this is not right.

Yeah.

Oh, you know, well, I mean, there was all this resentment coming out from, from the, especially electricians at this point, you know, well, we haven't got time. This is costing us money. You know, I couldn't believe it. And I said, but you haven't even got the quote. It's not even, you know, showing what we've asked for.

Yeah, you know, oh, it's probably good. They're showing their colors early.

Oh, my God, I can't believe it.

And in the end, I'm writing the question.

I mean, I'm writing it all out, really. Oh, my God. I'm thinking there's a business to be had here. Exactly. Writing quotes for tradies, I tell you.

Well, at the end of the day, you know, you've. You're the person with the money who's going to hire these people and you want to hire people you want to work with. And if they, if you're creating problems at the quote stage, God knows what happens when you get halfway through the job and something goes wrong. So, so, you know, if I have.

To follow them up for a quote, I just don't call them, I don't use them.

Yeah.

So quote stage is a good filtering process.

Exactly. And, you know, if you're not feeling comfortable with them there or they're not responding to your needs, there's some great tradespeople. And I know sometimes in the regional areas, it's a little bit harder. Big fish in a small one, you know, sometimes, you know, maybe you could take Sarah's lead and go to. What was it called Homes and, and Wolf Woofer and get, get some tradies who are backpacking from overseas and give them, you know, some accommodation and food and get them on the, on the tools and, you know, you don't. You won't have to manage the, the quotes then. You just have to manage them.

Yeah.

Exactly. But, you know, it's, it's about, it's about you being comfortable with the people. And if they're going to start pushing back then on their prices and what they're Doing and full disclosure and stuff. You probably don't want to with them. So, you know, have a. Have some thoughts around that, too.

I couldn't believe. I just couldn't believe how hard it was. And some of the mistakes were so, to me, so obvious. Like, they would put down things, like they would have the wrong number of, you know, lights, down lights in the kitchen.

Yep.

Or.

Or they would quote, you know, down lights and not tell me how many they're quoting for. You know, I'm thinking, oh, my God, what have I got here?

Yeah.

Exactly.

Anyway.

Oh, well. Well, I hope.

I hope that, you know, it is okay to ask.

Oh, absolutely, absolutely. And. And I think the. The. The other thing about that is that, you know, it's. It's one of the. It's. You're in control in the end, so, you know, if you aren't comfortable or if it's a problem or, you know, whatever, you make that decision and you then move on. And I think, you know, just make sure that, you know, you know, who's running the renovation and it's you. That's my thoughts. Anyhow, let us know how the Renault goes. It looks. It sounds like you're almost through.

Oh, well, it's going really well. It is going well. It is going well. It's going very fast. Every day is. Is just whole new changes to the property.

Yep.

And, yeah, so. And. And so we get. We're going. Actually, you know, you spoke about painting. Well, we're going in and doing the internal painting starting this weekend, so.

Well, good luck with that. Take some photos. Photos for us and put them up in the Facebook page.

Might be going missing for a while.

All right, I'll do that. Thank you.

Okay. All the best.

See ya.

Thank you.

Bye.

Bye.

Gosh, everyone's super keen tonight. They're still hanging around John.

Yep. No more hands up, though.

And.

Yep, I reckon that's us.

Yeah.

Well, I don't know if anyone's got any further last questions, because we've probably. We've used up all the time. Well, the. I hope you've enjoyed the call. And once again, you know, next month we'll be having the webinar on the last Thursday of June, so you'll be getting notification of that beforehand. And we'll be. Yeah. Welcoming some new ultimate guide of renovation students into the private Facebook group. So please, I asked you to act as ambassadors and. And welcome into our community because we are definitely so very proud of the. The lovely, you know, warm and sharing community that we have and I think it's. It's one of the. The best in Australia. We've. We've definitely heard of many communities who aren't as nice. So, yeah, we're really proud of you guys and the contribution you make. And you know, I was just glancing through the club very quickly and I can see someone's just put up some wonderful pictures that they've also just done. Jack, congratulations of his renovation. So another piece of person from a wall. I just. I'm loving demo day. I love the big reveal. I love the settlements. I love the good stuff. So, you know, we're gonna have to wrap up once again. This will be in as a recording in the next 48 hours. I really appreciate you guys and all your support and your questions and. And every. All the messages and things that you send along to us along the way as well. So, you know, as always, John, what are we wish for? Merry Christmas for your property success. It's good night for me.

See ya.