Your Property Success Mentor May 27- 05 - 2016

Hey everyone, it's 8 o' clock at time again and just before we start, I just need to say that often these calls contain some really great content that will be extremely helpful to other people. So we routinely record these calls and reserve the right to share the contract, share the content down the track. So by participating in this call, you're acknowledging this and if for some reason you would prefer not to be in included on the recording, we just ask that you contact our office on 1-300-963-646 within 24 hours and I can edit you out. Jane.

Thank you, John. Well, hello and welcome to our call for May. And as always, I'm looking forward to hearing from you guys tonight. I can see there's a lot of people joining us and thank you for letting us know that you can see our screen and can hear us. Look, we have had, oh my gosh, a huge month.

Really?

Yeah, I reckon. I can't believe it's a month already. I gotta say, on Tuesday, when I looked at my calendar thought that's Thursday night call. I thought I must be in February and missing a week or something.

But yeah, nearly halfway through the year.

I know.

Well, you know, we have got some fabulous topics to explore and flesh out together tonight. So settle in, get comfy. I know John said go get a coffee, I think get a wine. We're going to obviously be on the call for a little while. And these calls are exclusive to my mentoring students, the students of the Ultimate Guide to Renovation and of course my investors Choice Mortgages diamond clients. And if this is your first time on the call, a very, very warm welcome to you. Please don't be shy. We are not scary. There's plenty of time for you to listen to other people's questions and form one of your own. So we're here to help. Now, as I said, these calls usually take place in the last Thursday of every month. We did get thrown out at Easter, but 8pm so look, you've got a lot to look forward to if you are joining us for the rest of the year. And you will receive reminders a week out and a day out and a few on the day of so you won't miss out. And if for some reason whatsoever you cannot make the call, please call and leave me a message on the message line.

I checked it today, actually.

Does anyone Actually, no.

I was going to say, guess how many phone messages are there?

I don't know.

I've been, I've got, I've been investing in this as a monthly Fee for the last two years now. We had one call once and the person was actually on the line.

I can remember you talking into it. Talking you into it. Yeah.

1376 Triple 19 the month most underused number in Australia.

What a waste of a number.

Use it. 1300-76-TRIPLE1-9. And of course we never remember that by the end of the call either, do we? So I should write that down. So look, you know, as always you can hear John beside me. He's the co creator of the Ultimate Guide to Renovation. Hello John. Have you had a big month too?

Yeah, it's been huge month between webinars and workshops and all sorts of stuff. So yeah, it's great up in Sydney last week.

Course you mentioned the workshop.

Yep.

We hit the road.

Yeah, that was awesome. That was really, really good. So could you actually. Hang on, let me bring over my show and tell.

Let's just.

There we go. Look at this.

Okay. So we had a really hard life.

Yeah, that was the workshop. View from the workshop.

So for those who don't know, we have a, a small location hot spotting workshop that has 10 to 12 people and we have very nice locations, some very nice meals and a few.

It was awesome. It's a great after. So that's a view from the Coogee Bay Plaza and let me see if I can just advance it. There we go. That's the down to work.

Yep, doing that. Actually you can see there the Australian Property Investor magazine that was from 2006. So we go back 20 years of data and look at information. So that was pretty cool. Any more features?

Yep, let's have a look.

Ah, the dot mapping exercise. Now there's someone there. I can see him right in the. No, where was he? Oh no, he's not in that image. He must be around doing the dot mapping on the other wal. He has. He had been in the. Paul had been in the Ultimate Guide to Renovation 2013. Bought his map, bought his dots.

Oh that's right.

And this day was the first day he actually dotted. So we know that. We know people have trouble in doing this. And for those of. Those of those that do, getting in and getting a dot map done in 45 minutes and then moving on to the next. I think they found it really beneficial.

We did discover that Sydney's got a lot of suburbs though. So you know, kudos to all of those in New South Wales that have done the Sydney dot map because it.

Is quite big and I've had a few people over the last few Months semi Sydney houses and units. So they've done. Done a bit. So yes, really good. So we got down to some suburbs and we did some analysis. Then we jumped into the reports.

Oh, there you are.

Seriously, was that stage. No, I'm sure it wasn't. And got on the bus, headed off on the bus with our checklist to go and inspect a property as well. Now that was fun. And in actual fact, I have to say we. We found a real little beauty here. And look, it's in Little Bay. And no stretch of the imagination. Was it a investment a grade buy and hold property.

Yeah.

But it was in a street with other developments going on and duplexes and.

Yeah, which was the first thing we noticed when we rolled up, wasn't it? Because it definitely had renovation potential. If you just looked at the house and didn't take into consideration the. The street, you'd say, oh yeah, there's plenty you can do here. Potentially a box on the back.

Yep.

And. But then we, the first thing we did was stood out there and we looked up the street and we go, what are we seeing?

Yeah.

And it was double story townhouses, basically.

Yeah. So great potential there. But we did find something. I hope you've got this photo. I grabbed a snake. We did find something. I'm all for multitasking, right. But I have to say, guys, can you see this image? Let me know, put it, put a message in the chat box. What do you see here? That is quite unique.

What's off in this picture?

Yeah, it is the multitaskid shower toilet. Yes. So I got to say, we walked into this and we were a little perplexed and I said, and I knew that have ruined my newspaper. I don't even know about it. I'm such a visual person. So I, I spoke to the agent and said, well, you know what was. Tell us about this property. And it wasn't a deceased estate, but they did drag Mum out kicking and screaming to an old person's home. And I said, I bet you we find an outside loo. And the kids on the weekend thought they'd put in a loo and make life easier for her. And they just didn't take the shower out. And there was a shower across the way. So don't fear. Mum did have a shower. But yeah, this is one of the most unique inspections I've ever done.

That was awesome. Yeah, yeah.

So in the backyard. Yep, there we are. Lots of thinking. There's a bit of a townhouse beside us.

Yeah. So there you go.

And yeah, we had our, well, our four stage checklist. So you know, we, we have a checklist to go through for your quick.

Little 10 minute check for inspection. Yeah. And then all of the due diligence steps, the four steps that go through.

After you've put in the offers and take your builders through and say using the quick quote calculator and everything. So we went through everything. It was fabulous.

Gosh. Yeah.

And the, the agent criteria checklist as well, which was quite good. It was interesting seeing the, you know, when you get whatever there was, 19 property investors turn up and all get a chance to ask questions of the real estate agent. That was quite a unique experience because you're, you know, throwing on how much rent it is and you're saying is how many, how many Section 32s have been sent out?

How long has it been on the market?

She's like, oh my God, where are these people from?

I know. So yeah, everyone, everyone learned the words, what they had. And in actual fact she had a few giggles as well, I think along the way, which is nice.

She's good value though. She saved her back. So.

So no, good job. So we had a lot of fun and we do it again this weekend in Melbourne.

Yes. Do you want to, you got one of those workbooks there still? Why don't you explain just what happens in these workshops? So start with the dot map.

Yeah, well, basically. All right. Oh my gosh. This is. Sounds like we rehearsed this, but I just had to go and grab my book spring these things on me. John. Okay, so basically as I said, we start with a.map. 45 minutes, we get the dot Mac out of the way and for those people who have, you know, I guess got an opportunity to see some of the things that we've done, we then usually jump in and do some analysis and send you off to websites or if you're lucky enough to be in the Ultimate Guide to renovation module 2. You get the location masterclass spreadsheet that we pre populate, but I've then gone out and bought well over a thousand dollars worth of reports from three different experts and we add those suburbs onto.

The Residex Terry Ryder Ripe House and.

We add those onto the list of subur and then we put them all through my 40 filter criteria and we come up with the subbers and I show you how to analyze those and how I dismiss them very quickly and people get a bit upset about that. But it's all about the numbers. And then I obviously the people who are in the course, I give them three months access to RP Data Professional. I cover that cost and Ripe House and I show you how to use it and do the analysis.

So we get right down to one.

Yeah, we get down to one and then we jump on a bus and go and inspect a property. So we show you how to use the four checklists. So look, I don't know, it's a. It's a fast forward deep dive for people who are interested in that kind of thing.

Yeah. And the advantage is it just knocks it over in a day really, isn't it? Because at the end of the day you walk away with your list and it's done.

One day.

Yeah. Yeah, that's right.

So Melbourne this weekend and 21st of June in Brisbane.

Brisbane, which is only a few spots left.

Brisbane.

Yeah.

But anyhow, we had fun.

Brisbane's. Brisbane's gonna be good. Actually. Brisbane's proving very popular, so. Yeah, everyone's got good things to say about Brisbane at the moment.

We have a few, a few seats in Melbourne, I think.

Yeah, there's still, I think two or three for Melbourne. I think Brisbane's probably closer to filling up, but Perfect. Yep.

Okay.

And what else? Oh, I tell you what, I'm pretty proud of myself. Yep, I'm gonna do a show and tell here.

Yep. I have it here, prepared.

Money magazine. So out this week. The red one. Yeah, that, that's out. This is a really special edition of Money magazine that's actually going to be on the shelves for three months. And it's just about real estate. And I got to say, you know, I read a lot of magazines and books and things about real estate, but I just found this timeless, a timeless piece of real great content that every article was just so good and I was really proud to be asked to be one of the top eight experts to contribute to it. So there's my story. Invest in property for just $30 a week. And I went through and did a full analysis and indicated where to buy and what to buy and did the numbers behind it. I was joined by Peter Kulios, the property professor, who did on $150 a week, and Ben Kingsley from Empower who did $250 a week.

So they had the easy jobs. Really.

Yeah. Well, it's funny because Money had asked me to do something similar about four years ago and I got the 250 a week, which was easy. So they gave me $50 a week and I said, I reckon I could beat that. And I don't know, I reckon I could do a bit of competition with Pete and Ben. I might have to have a chat to him about this, but. And I had, you know, so, yeah, there was a. Quite a few people who top. It was nice to be named as one of the top eight experts and obviously amazing people. And there's Pete. I had lunch with Pete in, In Carlton on Friday. He is a great guy and just. Just a wealth of information and he shared with me, I gotta tell you, this is a weird multiple stream of income kind of proposal that he. He's doing and applying himself in Adelaide. And I've convinced him to come on our webinar next Thursday night, June, on multiple streams of income and how to make one property earn lots of money for you.

Yes. So talk to that, because that's what we've been working on the last couple of weeks. So I reckon that's going to be a cracker as well.

Oh, look, it's so exciting. You know, when I sat down and kind of thought, if I had one property and I could make money off it time and time again and in multiple ways, what would I do? And who do I know who's done these kind of things? So, you know, there's people who are, you know, using Airbnb, there's people who are doing student accommodation, there's people who are doing room by room, there's people who are subdividing and just, you know, selling off the back block or subdividing and building and developing on the back block, renovating the front. There's, you know, I'm not going to preempt it, but Peter's. Peter's strategy, which includes some really amazing options. So, yeah, it's just.

It's very clever, the ways.

Yeah. So anyhow, anyone who wants to make money more than once off the same property, tune in next, what, Thursday night, 2nd of June, 8pm Yep.

And last send out a website two weeks ago was the avoidable mistakes one too. So we haven't talked about that since the last call.

If people are frantic, they're wondering how they're going to get into it. The webinar next week, we haven't even introduced.

No, we haven't done it.

So you'll find out about it.

It'll be an email tomorrow and then it'll get promoted as of Monday.

Perfect. So, yeah, I want you to be on it. Had thousands on the one last week.

Yeah, we got over a thousand.

So this was the one around the mistakes. Avoidable mistakes. I've got to say, I was a Bit sinister. It was a bit sinister. We covered the murder house. What happens when your tenants turn out to be murderers? The dark towers. All of those units in the middle of the city with the lights out.

But foreign. Foreign owned and no electricity. Connected.

Yeah, I got to tell you, I've had an extension on that. I had a chat to my hairdresser and she lives in a block of units in too rak as only.

Gee, there are wealth of information here. Dresses.

I know, I know. And she said there was a unit penthouse sold in her block for $5.5 million three years ago. And there's never ever had the lights on.

Really.

Yeah. So interesting. And mining towns. We talked about people stuck in off the plans, negative equity. So, you know, it's. It's. As an investor, you know, we're. Well, we don't play on the whole fear card. We don't tell people how bad things can be. But I think it's being realistic. It's for me, interesting to hear other people's stories of what can go wrong so you can mitigate that risk yourself. So I felt that look, I loved it. I listened to it again and again.

It was awesome.

And I hate listening to myself, so.

Well, I think these webinars and the ones coming up too, are just putting in a hell of a lot of work in the groundwork to put them together. So we're trying to do them every three or four weeks. And so hopefully they should be good because we're putting in enough work that they should be.

I know. Well, I've got to say it's an enjoyable experience and just the people have been able to chat to and hear their stories. Remember the very first one we did on the affordability crisis? There was a lady who was living in van but had used our free, you know, webinars to actually improve the value of her property so that she could rent it out so she didn't go into mortgage possession, which she was about to, so the whole rent to invest. You know, she was taking to the extreme and another lady rang up and she had. She gone off to Mexico, you know, she'd rented out her properties and living the high life. So, you know, it's just amazing. I just. Yeah. I just love what we do and why we do it. But I guess what else has been up? Well, you told us last month that you had an offer on your townhouse. So John, for those who are new, has four townhouses under development at the moment.

Yep. And three of them unsold.

Well, they're not completed. But there wasn't the plan to that. But tell us.

Oh, yes. So the offer came through. So he signed the. I think probably the next day. I think it was after the last mentor call. And. Yeah, so it's good. It's sold. So one in the. One in the can and. And three to go. And so we'll take all the rest to auction now. So it sets a good precedent for next door.

Great.

And so. So far, so good.

Have you got Chantelle?

Because I have. Well, I told you. Well, last week you asked me about the artist impressions, so I've gone and got those. So let me go and bring those over. Hang on.

Okay. For those who think that this is the real actual property completed. It is not. This is the artist impression.

It is. Yep.

Is that a Maserati?

Yeah, it is a Maserati. Yeah. Yeah. Oh, yeah. You gotta, you know, live the dream.

So this is what amazes me about this. I've seen artists impressions before. I haven't seen the light and the reflection of the light inside. This degree of detail. Yeah, it just the, you know, it's leaving nothing to chance. It's really making people see the vision of what's being created, what is going to be created. And I know that, you know, driving past a half construction site and deciding to put over a million bucks down is probably hard.

Yeah.

But if you.

It is hard to sell off plan. So you've got to do this detail. So you normally get less off plan than you do in the real thing.

Yep.

But actually that's the one. The right hand one's the one that sold.

I like how you point to the screen as if people can see your finger.

I'll never stop that.

And I mean, congratulations, John, because I know that, you know, it's. It's a new venture. You took on a mentor also to assist you with your business partner with the development, which we all do when we're trying to do something new. But the. The fact that you've been able to turn this around and still want to validate it and have it above your numbers and make, you know, make money out of it is a good, good success story.

It's good. Thank you. Yeah, it's good. It's a bit of a relief as well. And. But all good. So we live to fight another day. And I'll show photos. Well, I'll show you how it actually looks.

Okay.

See, it's a bit of a letdown.

Yeah. All right. Okay. It doesn't look as pretty. Can we go back to the other image. I like that one. Okay, so how far off are we finished? Show us where we are. Really?

Yeah.

So it's what was happening today. All of the. The fix was going in today. So they're doing architraves and skirtings. I gotta call it. 7:30 with the. The keg. Carpenter sent me a picture off his phone of the architrave just to make sure it was the right profile before they went nailing it to the wall.

Nice. And always good to do that before they nail it.

Yeah, yeah. It had already been delivered, but it, you know, so. Yeah, so they've. They've got some. Some rendering to do at the front there. There's some stone and stuff that'll go on the sides. If we go back to the. The artist impression there, there's some kind of stack of stone on the edge. And it's amazing how much the guys joke on site now that we don't work off the plan anymore. We work off the picture.

Yeah, yeah.

Because we had the agents board out the front, and each time I would go there and they'd ask me something, I'd walk them around to the board and so. So now they're running what the door.

Handle used to look like.

Just make it look like this.

Yeah.

And it's. It's funny because I did. The guy's name is. Is Stan Eagle Vision, who makes this. These artist impressions in Melbourne in South Melbourne.

Very clever.

Port Melbourne.

What's his company name in case we want to.

Eagle. Eagle Vision they're called in. He's very good. Does these for all places, all around the Australia. And when we started doing it off the plan kind of thing, we had to make lots of decisions of details that just. Just wasn't in the plan itself or in the spec. So we just started making it up. For instance, all the tint of the timber and so on and the. Even the color of the stones and. And that kind of thing we would just try different. Let's try it with a darker gray stone. Let's try it with a lighter gray stone. And then what ended up happening was, you know, life in, you know, imitating art. Yeah. Because all of what we ended up putting in the real thing was what we had kind of discovered.

So you kind of like tested. Tested out the color scheme.

Yeah, yeah, absolutely. So it was. It was good.

So I said, what do interior decorators call that? They call that the. They have a board.

They have like a dream board.

Color board. Yeah, color board. Perfect.

Yep. Yeah. So it was good. And I'll show you some more. So that's the actual real deal. And there we go. There's the bathroom.

Now I kind of recognize this design.

I reckon you might, because my design hasn't changed. Really.

If you got something right, why would you replicate? So one of the things that you guys in the Ultimate Guide to Renovation, you would have seen in module 9. And I know you're up to module 11 at the moment, but module 9 was ways to actually create that structural renovation out the back. And one of the innovative or one of the many innovative kind of things that you'd stolen to reduce costs, stolen from commercial property rather than from someone not from the police, was the frame around the glass pane rather than having a window and having to frame up a window.

Yeah. So I'm trying to do this having a high level. I love things where walls and ceilings run into glass. It just gives you that really sharp, modern look. It's dirt cheap to do. You don't have to spend in the frame. So we just frame it up with some timber and then glaze it directly. A little harder to do with builders that are used to doing things certain ways on developments. I found that with a couple of my little tricks where I was normally either doing it myself or working directly with the builder. And now trying to explain this to guys that really like things to be in.

In.

In certain order. But anyway, still, just to point out.

Here, guys, this is the artist's impression. You can see the reflection of the towel in the back wall. You can see the light shining on the. The picture on the left hand wall. And there's even soap.

Yeah.

You know, so could have been white.

So.

But okay, pink.

But yeah. Mirrors to the mirror to the ceiling. Vanity, stone bath. What do you call it? Wall hung vanity.

Nice.

So, yeah, it doesn't. Doesn't really change.

I even recognize the taps out of the course.

Yep, that's right. Yep. And then it's the final one.

Wow, this is fabulous. So that's a butler's pantry just there at the back.

No, that's actually the laundry. The butler's pantry. You can't see it's to the left. And in fact, in this house, it's called a wok kitchen. It's a wok because it's. It's bigger than my. It's huge.

Are you talking about.

It's a wok kitchen. So it's got a massive wok burner in there with a. A. It's like a five burner meal. A with a wok burner. That's probably, I don't know, 400 mil.

Something I definitely wouldn't trust myself with.

Yeah. And it's all, you know, it's like the servants quarters.

We wish.

Yeah. But it's, it's all in this one. It's all melee appliances. So it's melee side by side ovens there, big stove on the towards, splashback window, splashback back, which actually looks into the neighbor's wall rather than out onto a park. That looks in the picture but there'll be some nice planting, nice flooring. Yeah. So the, and this one, because the demographic was younger than the other one, which we've been talking a lot about. The, the designers advice was to, to have it a little bit more modern so it's a slightly more gray board. The white's called Dulux Lexicon white, so it's a slightly starker white and so, yeah, it's just a bit more modern. Whereas the other one is. I can't remember what it's called the white there now, but it's, it's a bit warmer and the boards are a more of a brown aged kind of look. Yeah. Yep. So it's. We call the other one contemporary light, but this is pretty well contemporary. And floor to ceiling shears and love shears. She has just had so much wow factor for not a lot of money and. Yeah, so that's it. And the.

Tell me this, the person who did buy it, were they the demographic that you thought would.

Yeah, the, the. His, his. He's a really young, like he's in his. What would he be? Mid to late 50s. But he's actually, he's like matey's dosh in software development and, and I t and run different businesses and work for these big multinationals and all this kind of thing. And yeah, so he's pretty similar. So he wasn't the older downsizer that was, you know, on their last home. He was the, the, the child because it's not really a kids, it's not young families. And it wasn't the, the, the older downsizer, but we suspected it was someone. It was, it was a downsizer, a younger downsizer or it was a, you know, a childless couple or gay couple.

Or whatever, you know. Have you got any more pictures?

No, that's it.

I'm just going to make a comment here. I had a couple of mentoring clients in the office yesterday and it was an interesting experience because they had a property and they had seen opportunities for development going on in the area and if you're listening to this call. I won't say your name. Your protection is privacy is guaranteed. But you know, to their credit they had, had got the DA in place for the townhouses and they had got the, the three builders quotes and they were ready to go and they sat back and went oh wait a second, we just heard on this webinar and information about demographics and target market and target property. And then they, and we spent a couple hours together and we went through their analysis and the area and it was like, you know, 4% of people in the area used wanted to live in a townhouse and there was like 10% of renters and it was a buy and hold strategy.

Yeah.

So you know, it was about doing that due diligence beforehand and it almost seemed like there was, it was too good be true. We've got a property and the other people are making townhouses. Well, maybe we should too. So you know, it was a really interesting exercise and I know how much work. Well, you spent a year looking for the right site, didn't you, in the right area. So you know, just, just you know looking at pretty pictures doesn't actually tell you all the work that goes in behind it.

No, no. And the, the other one in particular, I mean this, this wasn't perfect and, and it's hard when you're buying off plan to get all of the elements right. Ideally if this had a bedroom downstairs it would have appealed to a wider demographic. So we were limiting our demographic with this one. But the other one in Canterbury is just absolutely spot on for the, for the demographic. So. And, and we are expecting a higher price on that one.

So.

November auctions.

Yeah. So. Well hope no actually be before that. It'll. We should be settled by then. I'd reckon so. Yeah.

You know, watch this space updates to come. Yeah, well I gotta say my pictures don't look as good as that. I actually put some pictures together for Australian Property Investor magazine today who were. They've asked me to do a share my most recent renovation. I went and did a, a quick little tidy up of a property that I have. And yeah, when those images come, if we won't be putting them side by side, you know, a million dollar house with that finish by you. I have to say I'm pretty proud of my bathroom and my kitchen.

Yeah, well, made your money. That was the main thing.

Exactly. So I think in the end I had it valued before the Renault at 820. I spent 35 on it and had it valued six weeks later at 920. So. So, you know, got to $2.90 per dollar that I spent on the renovation, which is. There you go. So all in. Good, let's move on. Are you ready? I'm ready because I want to hear people's questions. I haven't got any hands up as yet, so we'll keep talking until you put a question up. But where are we up to module 11 for those in the Ultimate Guide to Renovation. So a quick recap of module 11. Do you wanna.

Yeah, yeah. So the valuations and preparing the value a document, which is obviously a really important thing if you want to tap the equity or. Yeah, even people use. Use that value a document when they buy as well. So they can tap equity straight away or they can get a. Yeah. What would they. Have you seen? Do your clients do that when they buy? Get a use. Try and get valuations straight away, get a value, better valuation. That's something that the developers tend to do a bit.

Yeah. So this is the strategy where, you know, if you. Following the Trident strategy, one of things we do is talk about try to buy below the market. So let's say that, you know, the value is 500,000, you're able to secure a property for 450 and it's about going back and saying, hey, there's it's worth 500,000, give me the money. The reality is that usually the lenders require different lenders have different policies. So let's put my mortgage breaking hat on here. But they. Some lenders require you to have the property for three months if it's got a loan to value ratio below 80% and some require it to be six months. But so if it's got mortgage insurance so they won't revalue, so you can't rush in and revalue straight away.

Right.

So it gives you time to do that renovation.

Yeah, yeah, yeah.

But actually I had to wait and had a bit of a fight with one of the banks today about evaluation and it was someone who was building a property and first home buyer and. And the valuation was so high of the land and build of what they're doing that it pushed them over the threshold to get a discount on the stamp duty for first home buyers. So I had to go and complain for a higher valuation. I'm like, seriously for a low evaluation? Well, I had to complain about a high valuation, whereas I'm always out there fighting for. What do you mean you gave a low valuation? So it was just this insane situation and the bank said, we've Never had anyone complain about a high valuation pleasing you stuff. I've been doing this mortgage breaking for 11 years and I got to say this is my first as well. But yeah, if we're out there fighting the good fight. Yeah, and.

Yeah.

And so what else was in module 11?

Line of credit, building the portfolio. So all of the compound growth stuff. And then we also had the whole bit on the selling the property too. So marketing the property, you know, the cinnamon buns in the oven and all that stuff. Choosing the agent. Yep.

And the stage.

Yeah, yeah.

So that's one of our top five things to. To do with properties, isn't it? To add a bit of bang.

It is, yeah. And. And the stager is one of my best friends, along with the interior designer. I really get them into the process early. I don't know if we were discussing this on a call or at the workshop, I can't quite remember now, but the getting them in really early to even Design where the PowerPoints are going and how you're going to lay out rooms. I get them into. Yeah. Where are you going to put walls? Yeah, yeah, yep.

All the wok.

Or the wok kitchen.

I'm so glad you didn't tell me about that before the. I have to say staging. I reckon we should have a bit of a. A, you know, good ideas around property. That could be business. Business. Make your business millionaires.

Yeah.

And I've had one recently.

Oh, yeah? What is that?

It's the. It's. It's a twist on staging. It's. The staging comes with tenants. So you stage a property for six weeks. So you put the staging in and you know how you walk into a staged property?

Yeah, yeah.

They bought the, you know, it's been staged, but. And I always check, like, is there any. Is there a wet towel or is there rubbish in the bin to see if there is actually someone living there? But what if you. Because I was thinking about this with the Airbnb and the multiple streams and how to save money, et cetera, to build deposits, et cetera. What if you never paid rent and you're actually just attaching to this furniture and you move from property to property and you, you've got rent free. But what you got to do, your requirement was to have the house pristine and ready and have it on demand and have it open for inspection and help, you know, let people through whenever they wanted to.

You also have to shift the property, shift the furniture in. So you're responsible for the furniture removal.

Yeah.

Oh, look, I'm thinking there's a business there. Anyone want to partner up, let me know. And the hands go up. Oh, we got two hands up too. So look, I think that there was a lot covered and obviously we did module 9 and module 10 and module 8.

So all the renovation modules. Yeah.

So the really good stuff, which we love to see. So hopefully you guys enjoyed it as much as we did. So onto some housekeeping. And let's hear from these people who've got their hands up because I'm keen to hear your, what you're up to.

Yep.

Okay, so look, when you have a question, guys, all you need to do is raise your hand by pressing the little hand icon in the side menu. You can see there it's a bit small. Click the hand button and that's going to notify me that you got a question. And when it's your turn, I'm going to unmute your line. And when I do that, you'll hear, you know your line has been unmuted and you know that you're on. We ask that you have a microphone ready to use. Look, you can also ask questions by writing them into this question box at the bottom of the control panel. And, and I do try to get to these and with the time we have available. But I try to give priority to those spoken questions because I really think it just lets me get more in depth and really answer your question fuller. And it gives a lot more information, I think, for the people who are listening. So it's always more interesting to hear someone else's voice rather than ours. So look, we do go for an hour and a half. We try to finish by 9:30. We try.

When do we do that?

I don't know. But we're going to get tougher. We usually hang on until we answer everyone's questions, to be honest. But there you go. So look, for the sake of the group, if you have a question, a follow up question, make the follow up quick and you can come back a bit later and ask any other questions that you have. We really try to make sure that no one misses out because we know how important it is when you're looking for property or considering investing or you've got that stumbling block that you just need someone to answer your question and nothing's off limits here really. So it.

Nope.

As long as it's due with property and yeah, tech support. This is not a tech support call. We are not your tech support people. If you need some help, please. Email supportyourpropertysuccess.com if you have any technical issues, videos or logins, etc. I have to say, about four or five times a week, Diana gets an email that says, I forgot my password and she ends up sending. They just click on the I forgot my password underneath and it will be emailed to you. And she does that on their behalf, which is nice. So, look, let's get into your questions. I'm really keen to hear what's going on with you guys and what is burning bright on your minds.

All right, I can see Ali's hands up, so let's have a go.

Hey, Ali, how are you going? So what I have to do.

Yeah, we can hear you.

We can hear you. You're doing it.

You're doing it already.

It's magic.

That's great.

Have you got a question, Ali?

I do. It's just about buying below the market value. So we're looking at the median price range of a particular area and then you've got the asking range of the property. It might be between 550,000 and 600,000. So what should you be looking at? Which price are you buying below?

Yeah, look, that's a good question. I'm going to get John to throw over to my screen.

I thought you might do that just.

For some technical assistance here. So basically, I guess the thing is that change presenter, We're just going to throw up to my screen. Okay. So I just want to show you, so hopefully you can see my screen there. So one of the things that I kind of do is one of the, I guess a bit of analysis is we do talk about the Trident strategy and three ways to make money. Buy below the market. Buy with renovation potential, even if you don't do it straight away and then buy in a capital growth area, so you've got that growth to pull you through. Now, if there was any one of those three that you have to relinquish, and often in a fast moving market you do, it would be the buy below the market. Because often if you, if you hang out with your hardline negotiation in a really fast moving upwards market, you might find that what was $500,000 three months ago is now $550,000 today. So it's costing you money. So you have to anticipate that market as well. One of the things I would do is get information about the median. Now what I really do like is the discounting information. And you can get this in the back of your investment property magazine. There's discounting and it's not in the back of Australian Property Investor magazine. But if you're looking online and you didn't want to do it, I would go to. Oh, my mouse has decided to have a little mind of its own. I would go to Property. Let me see if I can get this working all about the it tonight. And I'd put in a postcode. Do you want to give me a postcode?

Yeah, I think West Geelongs 3, 1, 2, 2.

Okay, let's see if west.

I think Jacob was keen on West Geelong, wasn't he?

Yeah, he is. So what I've got here is Hawthorne. So let's go with West. That's okay. It's going to be a whole lot different. Median. Yes, definitely.

It's. Sorry, 3218.

Okay, okay. 3218. So we're looking at West Geelong houses here. So just a bit of an overview. The rental yields 3.97 which is, you know, compared to the 3.1s and 3.2s of houses in Melbourne, obviously better. The median is 430. And there's a bit of commentary there around growth. So if we just dive into West Geelong, it comes up with some information, we get a feeling for what's been happening in the area and we get the growth information, etc. Now this is where I find the discounting information. So you can see down here. So this is what's in the back of the. Your investment property magazine. So discounting gives us an idea and what these guys do is they monitor what properties are listing for and then they're monitoring what they ended up selling for. So this is one way where you can get that free information. Now what this says to me if 430 is the median and I'm thinking that the discounting is about 9%. Well, 10% off 430 gets you around about 390. That might be where. Or 380, 85. You might start there and negotiate up. So it gives you kind of an idea of what is happening in the market at the moment. And I think that when you kind of considering what is being told to you about the range of the sale price and agents do give you that it's between 550 and 600 or whatever they're talking about. This gives you a little bit of an idea of where you might start those negotiations. So. So that's kind of what I would do. The other things that I would do is I'd possibly go in and look at get a Residex report or if you have access to RP Data get a report on or RP data professional. More to the point, get a report evaluation of what that property is actually estimated to be worth because then you've got something realistic. We're not talking about the median for the area. So you know if for Geelong west here we see the media at 4:30. If someone's talking to you about a medium of 550 either this data is old and you might question that when the data has come through, which we can usually see. When they have actually put it down from which I can't see quickly here but they usually tell you when the data has come through. So even if we just have a look at recent sales to see when the most recent sales are. There you go. Not found but it tells us the information is from Domain.

Sorry, I did get a Residex report in May and their median price is 513.

Yep. Okay, so what you would want to do is validate that.

So what about Suburb View? We'll go medium per bedroom.

Yeah, let's have a look at that. So one of the other things that we would do is this is going to play a song for me here. I know it because it always does. Suburb View. Oh, three, two, one, eight Property reports. Geelong west. And this has come up with for sale. And what we're after is reports. Geelong West. Let's just put Geelong west in there because it's just going to keep throwing us in.

Doesn't want to work.

Something I prepared earlier.

Oh, there you go.

So I go down to this three monthly yield data. So this tells us that house. The median for three bedroom houses around 604 is 440 and two bedroom is 423. What's interesting. Yeah, what's interesting here is if that was 600 and 400 and 400 and it was like 12 properties. 12 properties and two properties. I would be doubting this figure but the fact that there's 20 properties that are on the market and they're saying the median is 600. So this is what has been rented over the last three months. So they're taking all the data that they've seen. So this is a rental data listing over the last three months and they've taken a look at the medians at the same period of time. What's interesting is you see the yield for the area is quite high but you can see the yield for these properties is quite low. And what that would indicate to me is that there's a fast moving market. So this has moved up quite considerably. But the rents are still, you know, everyone's still stuck in their 12 month rental lease and the rents haven't moved. So you often find that, you know, in, and I know people who bought in like mining towns like Marimbah. It's like we've got a 12% yield and as the property prices went up, the yield went down. So you know, you often see this happen and then what happens is you get the counterbalance with the rents going up again. And as the rents go up, investors go, hey, why should we buy here? And then they start buying and they. And the growth comes along as well. So this kind of gives you a bit of an idea of what is happening.

So that median of 5:30 is probably looking like it's wrong.

Exactly. And if we just quickly go in here and have a look at the fact that there's 21 properties on the market, we don't want units or townhouses. So we've got five houses on the market at the moment and we can have a look where they are 3, 3 and 2. And we've got, you know, 423 and 950. So there's a large discrepancy there that's happening. So you can, you can start I guess doing your own due diligence. So you know, the Residex report that you got probably gave, was it for a house or for an area? The Residex, an area.

Okay, so the area.

Yeah, so the Residex report would have done that median of the resale values of what they've seen of recent sales. So you know what that would indicate to me is that, and this is why it's so important not just to do one lot of data search, why we always say, you know, this is one tool in the toolbox. This medium price is obviously low and the discounting is, is high. So what's possibly happened is this is older data, it might be three to six months old and it's unusual. They usually put down when the data came through but the data is being updated and that's why I would go through and actually add in and have a look at this different information and try to validate a what's happening in the area and what's happening on the ground. So, so how does this help you? So you've kind of got a median and you want to buy below median and this indicates to me this is a fast moving market. So the prices are going up.

So I suppose what we know from that is it's a three bedroom house is the typical property so that's one thing we do know. Even if the median's a little bit shaky.

Yep, yep.

So if we start from there, at least if you were to do an automatic valuation on a three bedroom house, then you can have a look at some of the other three bedroom houses on the market to try and validate whether that's a typical price or not.

Yep, exactly. So you can start getting down and getting into that kind of details and you know, why not go to the source? And this is the, the census information and it's telling us when we get down here to dwellings that most people, 74% of people are in houses and it tells us that 46% are three bedrooms. So just verifying what John said is that that three bedroom house is the typical property. So I would say that although. Grab the magazine, but grab the magazine and have a look in the back and just see what the discounting is in the back of the, your investment property magazine and have a look at these type of data analysis. Is it the typical property for the area, what the typical property is being sold for and what the valuations are being seen that are coming through. And as you say, get the paid report for the suburb and then what the asking price is. And it would seem to me that if it is fast moving that you're not going to be getting that 10% discount that's on that investor website.

Thank you.

Does that help?

Have you got a follow up question?

You sound unsatisfied. How can we help further?

No, it just takes me a while to absorb everything in and it's, you know, there's just so much data and you've got to look at it all and. No, no, it's good. Thank you you very, very much.

Well, you can, you can watch the recording tomorrow.

Ali, for the recording team. Yep.

Thank you.

Okay, bye. See ya.

Bye. All right, let me just. All right, let me have a quick look here. Okay, that's what I'm gonna do. Share my screen. And we're on the right screen. Good. Okay, let's have a look. Vitaly?

Oh, I don't see a microphone sign. Vitaly, are you there? I see you've got your hand up if you want to.

Oh, here we go. Hello. Excellent.

Hi, John.

Hi, Jane.

Very well, how can we help?

Yeah, my question is I guess in the strategy sort of space, I guess it's probably in the avoidable mistakes space. So I've got two units in Brisbane and one of them is in kind of that negative equities space. So it's a unit in Albion and I've got the other unit as well, which has some potential for innovation. So the second one is kind of a second hand unit in a block of six.

Yep. Nice.

So what I'm trying to figure out is how do I decide whether I, you know, whether I sell that second unit? Because I guess at the moment I can't sell the negative equity because I. But whether I just renovate the second unit, the second hand unit, and then sell it and then maybe.

I guess so. Vitaly, in my mind, it all starts with being very clear about the vision is for the properties that you add to your portfolio. And we talk about accidental investors. Sometimes I buy a property and it doesn't always work out. And you can do this in retrospect as well. So, you know, if you could tell me, you know, when you bought these properties, what was the vision for them and why did you buy them? It sounds to me like the negative equity property was probably a new property. Is that right?

Yeah, yeah, that's correct.

So was it off the plan or you just bought it new?

Just new. Just bought it new.

Okay, and when did you buy that?

So that was in 2012.

And what was it worth then and what's it worth now?

So I owe 600,000 on it. And it's probably the selling price is probably, you know, low 500s at the moment.

Okay, why is that? Was it an oversupply or was it not typical for the area units or, you know, is there any learning opportunities, I guess for yourself and for others on.

Yeah, I think it was probably just the supply or I guess the supply in the area at the moment. There's a lot of developments happening in Brisbane at the moment, all over the place, I guess. And that's the feedback that I'm getting that I guess some of these developments are selling at a lower price point or many of them selling at a lower price point now than they were back in 2012.

And how many bedrooms does it have?

Two bedrooms, two bathrooms, one car park.

So just looking at that census data that we looked at that census site previously and just looking at Albion, it's. It seems to be a very small area. Like there's only two and a half thousand people there and only 1200 dwellings. And when I look at the 45% of people do like units though. Why not? Yeah, why not? So. So, yeah. So if I'm looking at this, you know, it says just show you that. Share my screen. So 44% of people like units in the area. So this is a small, a small area. So there's only two and a half thousand people. And if I scroll down once again, I've got, you know, couples with families without, sorry, couples without children are the predominant kind of group there. Separate houses, 45% flats are units, 47%. So there's a high demand. So it's not like it's an out of characteristics type of property for the area. The two bedroom is the most in demand as well. So you've kind of nailed the fact that there's that demand and we've got 44% rented. But what you are facing is that supply and demand dynamic. And what you're seeing is tenants are not loyal. And we've seen this in a lot of those new development sites and in inner city apartments in particular or apartments areas is where there's land or where there's an opportunity development or there's a council that's open for giving approvals for development. It's the newer, shinier, flashier unit that the tenants want to go to. And often what you see is there's a price reduction in negative equity as well. So Sandra just pointed out here that Albion is super close to the city, two to three train stops away. So it has that kind of, I guess, effect on it. And as you say, there's a lot of money that you need to pour into that to get out of it. Some people would choose to maybe do that and others would choose to hold on. It's about what you see in the future. But it sounds to me that when did you buy the second property, the older style unit.

The one in corporal, in 2014.

Okay, so the strategy was a bit different. Now you didn't buy new, you bought older in a only six unit block of units. And you heard John and I go, nice, because you know, you're not having those high lifts and strata fees. Usually in the older units you can add some value. As you said, there's opportunity to add with renovation potential. So you know you have that second prong of the trident strategy where you can actually manufacture your own equity. And I guess the thing that I would be concerned about is that you may be losing the one working asset in your portfolio by selling it. So you might financially, you might need to sell it. Let's face it, your out of pocket expenses are not what you anticipated them potentially to be and their only out is to sell. And that's what you have to consider. But if you can afford to keep it and there's good growth potential for that area then I'd suggest that you should probably look at that and consider being able to keep it or doing a bit of a renovation yourself so that you can add that value. So I think that just understanding what that could be would be important. Let me just pull up and purchase for you a Residex. So how do I spell this?

Cash flow isn't such a. Such a, you know, it's not such a big issue. I'm not out of pocket all that much like given what I earn I guess. Yeah, it's more future prospects.

Tell me, what was the suburb of the second place? Oh okay, we can't spell.

4151 I think it is.

Let's see. Cooperoo. There you go. We have so much shop spelling, don't we John?

Well, it was hard in Sydney but I reckon it's going to be harder in Queensland.

So let's just have a quick little look at what predicted growth is. And obviously I've seen this, although I can't spell it, I've seen a number of clients buy in this area. I haven't had much exposure into Albion at all. But what it tells me is that you know, you probably changed your strategy or even gained strategy with some insight when you bought the second property. Is that right?

Yeah, yeah, I bought it through a buyer's agent. With that kind of view it to have a bit more of that manufactured growth I guess.

Perfect. So let's just have a look at what's happening here in Kabirru. So we're going to go down to units. So some unit statistics on the medians over the last 10 years. So we can see that the medians have been following what's been happening in the city of Brisbane. We're looking at the growth. So there's been, you know, some not standout stellar growth, but there's some been some growth and we've got some really good yields. So you know, it might have been also a bit of a yield driven decision and sales. So most of the properties are selling within that three to 400. And you know we've got 100 property sales in the last 12 months. Three to 400,000, 400,000 to 500,000 and here's some growth. So the predictions for growth over the Brisbane growth is actually a bit better. So you know there is actually some growth potential here. So as I said, you know, if there's an opportunity to maybe renovate, manufacture some extra equity and obviously, you know, you've probably heard us harp on about this time and time again about looking at the difference in the pricing disparities. So find out what the renovated properties look like, the fixtures and finishes that they have and the rent that they're getting, more importantly and, and the value of them. And once you've done that, come back to your property and go, well, how much do I have to spend to take my property to that level now? Like the little renovation I told you about that I did last year, there was enough. I knew that 920 was a renovated end value for the property and I knew mine was worth 820. And I knew having looked at the fixtures and fittings and what a renovated property looked like, how much it would cost to get mine there. So, you know, I'd almost, I'd almost think that we talk about avoidable mistakes, that clarity around the goal and what those properties are going to do to get you to your goal, the first property. Accidental investor. And it looks like you might have to hold that for a period of time until the equity gap is squeezed together. So it's not going to cost you as much. But that second property might just be, you know, something that the biggest mistake you, you make is looking back on it and going, in actual fact, I probably shouldn't have sold it. So, you know, I'd be, I'd be cautious about dumping that one without doing some extra research. Okay, I'm just going to have a quick little look here. Does that, is that kind of help you with what you were asking?

Yeah, very much so.

And once you have that clarity, Vitaly, I think that you know how property needs to be fitting into your portfolio. You start building up that criteria of how to assess future properties as well. So you start looking at them and you're going, you know, does this property fit into my criteria and getting me to my goals in the time frame I want.

Sandra is voting for hold on to Cooparoo.

Okay, so people are saying hold, so we can't give advice, but Sandra, show some, some opportunities here. And we see here that once again there's, we, we looked at Albion, there's 2,000 or something, resident, residents. And here we've got 14,000. So a much bigger area. And if we have a look at units, so 40% unit. So it's not atypical for the area, which is great. And two bedroom is the most prevalent and we've got 45% rented. So it's an in demand area. You know, I think that you possibly may have some opportunities to look at this property and add some value or, you know, you might Just have to suck up the Albion area and sit, ride that out for a bit of time. The problem with these properties that, that are in negative equity or you can't get rid of without costing you a lot and they may not be getting you to your goals is actually the opportunity cost. So although you know, let's say it's worth 520 and you loan 600, some buyers, you know, selling fees, et cetera, it might cost you 80 grand to get out of it, but you've tied up $600,000 worth of purchasing power or borrowing capacity that if you applied in a fast moving market in a good growth area could actually make you back that amount of money in two to three years. So holding this for five to 10 years with it going nowhere potentially is not. And you run these cost benefit analysis yourself. But if you had the cash and maybe created the equity from the Cooperoo property, you might even consider, you know, know paying that down, getting rid of it and making a better investment.

Yep. Okay. Thank you.

I thought you were crying then. I thought I had a sob.

No, that's all good. That's what I'm thinking. You know, it is a lot of borrowing capacity that's just sitting there. I guess at the moment I just don't have the cash to sell it but.

And that might be.

It doesn't sound as bad as I thought it was.

Oh good. Well it doesn't sound as bad as I thought. Yeah, it doesn't need to. Oh, there's two Albion's in Queensland, 404010. But let me just say you've got a little bit of insight to help you go with this and if you can just put your email address into the chat box. I've, I've just purchased these two reports for you so I'll send them to you.

Brizzy units wasn't too flash though, was it?

No, 2, 3% I think. I've actually in preparation for the Brisbane hot spotting workshop I wanted to get the predictions report but I want to get it as close as possible to the workshop. So it's a month away so I don't have that at the moment but. But you know I know that just reading through the Sydney and the Melbourne, you know we're talking about 20,000 plus type of excess of properties available and it is that kind of inner city area. So once again we're just looking here about medians.

So it might be a short term loss in a house further out that might give you the growth.

So my concern here for you, Vitaly, is that if you've got a loan of 600, obviously you spent more than that on the property and the median's around 438. So maybe that first property as well didn't. Wasn't a strategic buy at the median price in the area. So it was probably, you know, a premium price put onto a premium new product developers do. You're a developer, John, maybe in 2012, look, everyone was doing it. There was a hundred sales. So you were part of this phenomenon here. And yeah, look, there is a lot between the 4 and 500 but where we saw back in Cooparoo, there was 100 sales at that, you know, top price point. We're here looking at 20. So you know, just be aware of that. And you know, once again the unit out, the unit outlook for Brisbane, not great. But Albion's got the same kind of outlook. So, you know, we'll, yeah, look to see what you decide to do with your Cooperoo property. But it sounds like you could manufacture some equity there. And this is the great thing guys, about the Trident strategy is that it's that fallback strategy that you have. So you know, and I guess I hadn't thought about this previously about how you can apply that to other properties that maybe have some shortcomings in your actual portfolio. But if you have a property that has the ability to manufacture some equity, it can actually create some solutions and flexibility for those underperforming properties as well.

So it's like a renovation that you haven't activated, is that what you're talking about?

Exactly. And Sleeper renovation, the API magazine in next month where you get to have a look at my little refresh renovation. This is a property I bought in 2002. I could afford to do, you know, the preliminary works. I couldn't afford to do the kitchen and what is it, 2016. So, you know, 14 years later. Yeah, yeah, 14 years later they get a new kitchen because, you know, there wasn't a renter's objection for that period of time. The kitchen was quirky and interesting as the little tiny 50 square meter terraces. And it didn't have a problem. It just got to a point where it was time to do something to take it up to the next level and release that equity. So, you know, just having that Trident strategy and the ability to renovate even if you don't. And I'm not talking about kicking people tenants out to renovate straight away. It's about, you know, doing it strategically when you have to, when you have the Funds. So it might just be something that you might consider. Hope that helps.

Thank you very much.

My pleasure. And I'll get you those reports tomorrow.

All right. There you go.

And, oh, send me an early night, John, I reckon. Questions.

Anyone got a question for Joan? Stick your hand up.

What about a question for John?

There's absolutely no questions. Oh, no. Hands up. And there's no questions in chat. So this is unusual because it's only.

9:06 and I can say we got a lot of people here. Oh, I think.

Sorry, that got them going. There we go.

Lisa, say my family would be happy to see me.

Hello, Lisa, can you hear us?

Hello.

Hey, Lisa, welcome.

What's your question for Jane?

We can hear you.

Oh, hi, Jane. Hi, John.

How you going?

I emailed you a question a little while ago about, I don't know if you recall, it was about, I'm actually going on maternity leave and our borrowing capacity in my husband's will drop even though they're not. Even though we're purchasing in my husband's name. My mortgage broker tells me that they're factoring in my income for an investment loan. And my question was whether or not we purchase. Seems as we're not in a position to renovate at this moment, that I'll be giving birth shortly. Whether or not we purchase something that is in good enough condition to rent immediately in the best possible location that we can afford now while we've got pre approval, or if we potentially leave it for 12 months and end up having to purchase further out and then fully execute the Trident strategy in terms of adding, you know, being able to renovate it. So just a bit of a dilemma as to which way to go.

You might just have to recap the question because it was very quiet there at the start.

Yep. So I guess there's a couple elements to this. The first is that because you're going to on maternity leave, your borrowing capacity, your mortgage broker is indicated your borrowing capacity capacity will drop based on the fact that your income is being included in your husband's borrowing capacity. And something about whether or not I.

Be counted as a dependent or not.

Yeah. There's a couple of things when you have a baby. One is you add an extra mouth to feed. So going forward, you know, it's two adults and a child that your husband has to support. Often when you have an income, there's a couple of lenders that have like a shared debt policy. So amp is one of them which says if we can prove that Lisa can pay her own way we don't have to include her as a dependent. I'm making some assumptions here, but I'm thinking that that's what your mortgage broker, that's the policy that they're utilising. The other lender that does that is cba. But you have to have all your loans with CBA for them to kind of consider that sometimes. So it sounds to me that they might be employing that policy. St. George bank also does it, but you really have to substantiate that the person has the income. And if you've already stopped getting payslips, then that could be difficult. So not necessarily. Are you getting the wrong information there? I think that you're probably getting the right information. Have you stopped working?

Yeah, I've just stopped about a week ago. But my pay will continue for three months. But we presently have pre approval of anz.

Yep.

For the higher amount.

Okay.

So factoring that I was working.

Yep. Yeah. So like I guess legally, you know, if your circumstances do change, you do need to, you know, make your assessment reflect that. But you know, you wouldn't go into a purchase of a higher priced property not knowing that you had a buffer and the cash to cover that off as well. So that's a conversation you need to have.

Serviceability is not an issue. We factor that in as well as our buffers.

It's not a problem. So I guess your question now is you can could buy with the higher price point.

Yes. So do we buy? Because we're not in a position to renovate at the moment. So if we did buy, we wouldn't want it really sitting there for 12 months doing nothing. We'd want to rent it out. And so therefore we figure we'd need to buy something in a semi decent condition so that it would rent out.

Yep.

So do we, are we better off buying now the best possible location with a semi decent house or should we wait until we're in a position to renovate, potentially buy a bomb? And because we've waited 12 months or whatever till my income returns, you know, we'll probably be buying further out in the poorer location.

And I guess this comes down to the fact that the money that you have now, you don't have the capacity as well as buying at the higher end end to actually spend on a renovation. And it kind of lends itself to some of the comments that, that I mentioned to Vitaly, which were the fact that you don't have to renovate straight away. And you know, I see people regularly trying to time the market And I think I've shared previously, you know, there's a lady I've been speaking to who you know in, in 2006 was waiting for the Sydney market to come back for her to, to, to jump in and buy something. So you know, and now we've got a median price over a million dollars and I think I see people trying to time the market and I'm not clever enough to do it as long as I've got a property, you know, when I've got the capacity to buy, I try to buy the best possible property I can in the best possible area. And, and I think have not having. You may not get the extra 20, 30, 40, 50, 60 bucks a week in rent but you're not in a position to access the equity anyhow. So actually delaying the renovation if you've got the serviceability and the buffer whilst you're on the one income and obviously you've got the three months pay, etc. And you might go back early and all those good things. But I think in my mind I would much rather be in a better location and we're talking about 10, 15, 20 year plans here. We're not talking about next year. We want to sell. So I would rather, I'd rather cop it on the chin and maybe not get that immediate rental hike that you get from a renovation. You can't get the equity anyhow. So get a property, you know, as you say in it. Well, it's funny, tenants will rent nearly anything. I remember looking a place in Marouba and they converted a laundry into something that someone was living into for 90 bucks a week.

So at the right price point.

Yeah, at the right price point, right area. But so I don't, I would, I wouldn't rather see. And it brings some of the argument into. Well, you know the Sydney market is, is, is coming off and but we still saw clearance rates of over 70% last week. So you know, I think that there's in the right area and I went through. Oh, you're about to bring up the predictions report for some Sydney.

No, I was going to bring up the renovations report because I saw a comment come in the. But I can do that as well.

If you could bring up. Okay, this is the Residex Sydney. Oh, I don't know if that was us or you. This is the Residex Sydney predictions report. So I think from memory, let's get down to like page 26 or something. So these are around about, I read these things thoroughly. This is around about. This is these cost around about $215. And they do the predictions of the best suburbs. And this is where I want to have a look at here. So the important thing here when we look at, so this is just a standard, you know, what's happening in Sydney. And median prices of houses are 1,046,000, yada yada. But what I'm also really interested in, here's the median and here's the properties below the median and the, sorry, the suburbs below the median and the suburbs above the median. And I try to get a feeling for, you know, the price point and the suburbs that are falling in value. And usually what you see is that, you know, the. Gives you an indication of, you know, where it is almost safer to buy. So, you know, if you were talking about the difference of buying in this 430 to 700 price point, although it's only incremental difference here, often what I see is that these suburbs fall in value a lot faster than the higher value properties. So that kind of leads to the fact that these are the higher value properties or the ones that are more around the median, more around where the population want to live. They're more targeted to that population dynamic of driving closer to being close to work. Sydney's a bit difficult because we, we also have that Parramatta CBD as well. So I'd still be looking at 20ks around there. But this, to me is, I guess, interesting about the houses that are under the median and houses above the median and what they have lost in value. In this instance, not such a big a deal. But what I see often in these quarterly reports is that those under the median lose value faster. So. So I think that if I had the choice of buying now and not being able to renovate for a period of time and then being able to do it in the future, compared to buying further out into maybe one of those more affordable suburbs that you still had the funds to renovate. I would be more inclined to go to the suburb that had the better growth drivers and the better infrastructure and population demands in the area. Yeah, that's interesting.

Yeah, because I would have thought that buying under the median, there's more people available to purchase or. You know what I mean? I would have thought that there was more people in that price bracket. It's interesting. That's. Thanks for, thanks for that.

Yeah, it's just, I mean, you know, this is one of the tools that we used in the workshop on the weekend, hence why I can quote it. But I'm always looking at these kind of Factors and trying to apply some logic to them and just get some insight into what does it mean. Because there's so much information and so many figures out there. But we don't take information from just one source. I'm looking here at future predictions for all of Sydney. 1% growth. Well we know that the market's going to pull back but is it going to be 1% growth in the next five years? Maybe in a lot of areas, but I think those better position areas are going to outperform that. And I'm looking at like what I did for Tali, the suburb prediction reports. I'm seeing some suburbs that have got the five and eight year predictions around seven and eight percent. Well actually you've got the prediction report there just here, let me show you something.

That's it.

Yeah, you're right. Yeah, see that's how clever I am. Let me show you something I prepared earlier. Okay. So this is the prediction report. So you know, first and foremost I disregard most suburbs that have over.

Yeah, well that's a good thing. Why don't you just explain to people how you knock suburbs out quickly?

Yeah, so basically you know, anything over the median or anything below the rental yield and anything that is outside that 20k CBD, my criteria. So these are the first three things when looking at this report I would knock out. So one of the things we do in the workshop, we go through the hundred top predictions and we knock things out very quickly. But there's still some, you know, we're talking Newcastle here, you know, a bit further out but there's still some places because I know we pulled out about 10 suburbs that were under the million and in the right area that you know, were coming up with prediction. So you know we're seeing 8% here.

But still too high median.

Yeah, yeah. So Bronte's 2.7 and but you can see here, you know that that kind of, you know, Holdsworthy672, 8% growth. So when we're seeing the, you know, 1% that's predicted for Sydney, if you can have a good area then I would be suggesting that you probably could ride out some of these variabilities that we're going to see in the next few years across the market.

Yeah. Okay. And so that theory about the under the medium versus over the medium. Do you think that applies to other markets in Australia? Melbourne for example.

I was looking at the Melbourne data too just recently and it was actually closer. I think there was a few over the median that had lost more value than under so no it does. Every market is different and hence why, you know, I usually get the, the most up to date data that I can when I'm doing these analysis and but yet every market is, is definitely different. And I think that you often see due to affordability in Sydney, we're often going to see some discrepancies in these numbers because people are just by the mere fact that median house price is over a million dollars pushed out to those outer suburbs so they can afford to live because you know, okay, once again, let's just jump up here. There's a. I'm going to give someone a epileptic fit. So just look away. If we look here from an affordability issue, they say the median income in New South Wales 110,000 and the median house price is a million. And the rental yield for houses is 3.25. So the loan repayments at 4.98%, 64% of the after tax income or after loan repayments is what people are spending of their income for a house, whereas for renting it's only 37%. So you know, down here we looked on history, 35 to 40%, you know, over 40% of your income spent on housing, you know, can actually create, create some cash flow issues. But what we've seen is consistently over the last four or five years we're pushing way up over 50% in houses and, and in Sydney, you know, this is an argument for renting over. Than renting rather than rent.

To invest.

Yeah, to invest. So invest somewhere and rent somewhere else. So but yeah, I think what I, what I see is the better quality properties and the better quality the fit for, fit for market properties in the areas that have those growth dynamics of population and infrastructure. And infrastructure. I'm talking about not just transport but schools and shopping centres are the ones that have got the most growth.

Yep, excellent. Thanks Jane.

Okay, my pleasure. All the best. Thanks so much. Thank you. Oh, good luck with the bub. Thank you.

You.

Thanks.

All right now.

There you go, Sandra.

There you go, Sandra. Sandra. Just typed in, did I see Ocean shores? Yep, number 10.

Number 10 on the list, 5% yield.

Y. There you go. So we've got a question here in the chat box. Any suggestions of what suburbs to look for as renovation suburbs in Sydney or.

Oh, this is a cheaty question, Mandy, because we just spend a lot of time with people in Sydney. We started with oh my gosh, what do we get down to? After the ripple effect and the four reports, we've got a feeling we got.

About 18 out of this one, wasn't it? There was a lot out of this one. This one was good.

There was about 52 suburbs that we started with. This renovation report is really interesting a few years ago. Geez, it'd be I know 2010 now. I remember telling John Edwards that I reckon he could create a renovation report and for suburbs and he then went one further and created this report which is the statistics the top 100 houses.

For so same thing. What are you, what would you be looking at to knock it out?

Knock these suburbs out once again pricing disparity and rental yield. But here's like the number of streets that has renovation potential. This is what is of most interest to me. So, so we've got here Quakers Hill affordable below the median 5% growth. 5% growth. We're talking about the rule of 72. The rule of 72 tells us if we divide the growth into 72. So 72 divided by 5 gets us 14. So it takes us 14 years for this property to double in value from 685 to 1.3 something. So it's had a bit of growth over the last year.

Year.

Not as much as what we've seen. And this is probably goes to Lisa's question Mandy as well. You know some of these outer suburbs and cheaper price suburbs compared to the median haven't had the 27% growth. I mean I've got three properties in Sydney that did 25%, 27% and 30% last year. You know, so whoa. Before me how bad it would be if the market came back 10%. You know you don't really have a right to cry if it came back 10% for these guys. You know they're going to be a little peeved. So you know it's had some growth, some good growth. So this is once again over the median. Expensive, expensive. Guildford, you know, good area closer to Parramatta had some good growth, had some big growth previously. Once again 14 years. But there's 57 streets that have renovation potential here. So this is.

So I don't know if we said this but this is the top 100 state.

This is renovators report. House.

Yep. For metropolitan area.

Yeah. So that's a, that's a really cool report. And, and I think also that you know when you start looking at these reports and actually start looking at the, the suburbs you can. I'm just trying to pull up a suburb report here. Oh yeah, yeah. The residents. Yeah. Just to the renovator report report is what I'm after.

That's predictions.

Okay.

Sub ed report?

Yeah, it's one of them. Yeah, why not? I kind of. I kind of like this little area. So this is just to give you a quick little idea of what the renovator reports look like. So we saw, you know. So for instance, Quakers Hill had. Whatever it was. Guildford had 57 houses that had renovation potential. What they do, and they, they take you through and show you all the calculations that they go through. But they list the streets, street by street and tell you if the street has renovation potential. And what they do is they take the median, they do a 10% cost of renovation and see if there's ability to add value. So they're saying here there's 113 properties in Applin Road. So it means about 10 properties in every group. So they've split up over the street percentiles from 0 to 10%. So this is buying right at the bottom of the street and to make money. So if you've got a green to red, it says you can make money if you buy at the bottom and renovate up to this 80% mark. They give you an idea of current listings and some recent sales. Now this one says there's not any capacity to make money. So let's find one that I think would have. So see here, when we're talking about buying below the median, if the median is 50%, we're talking about is it possible to buy down here, do a 10% renovation, so $60,000 renovation, so it's going to cost you, with settling costs, et cetera, around about 7, 10, et cetera, to actually make some money. Now they use a 20% gain and the calculation is listed above and how they do that. But there's a 20% gain that can be made, whereas we're talking about trying to make a lot more than that. We're trying to make $2 for every dollar we spend. So, but you want to renovate just above the median. So here's the ability to renovate above the median. So they're saying, look, you could buy at 680 and get up to one of the top properties in the street and make a significant amount of money. But be aware there's only three houses in each of these price points between 680 and 740. So. So this Mandy, kind of, you know, when I drilling down to the renovation potential and obviously there's the whole, the capital growth in those suburbs, we're looking at ripple effects. We're looking at predictions based on infrastructure and predictions based on sweet Spots and past growth. And we're looking at all this kind of information. I apply my filters, but this is, you know, when I look at those renovator reports, I'm looking at properties that are below the median and above the rental yield. And then if I get to a area that I'm really keen on getting more information on, I'd then go through. So this is where we get down to the street level and we start looking at street level. And then I mean, obviously in the workshop what we did is we then put up RP data and actually looked at the individual properties in those streets.

This report would be a great one for the West Geelong question before as well. Yeah, but what I like about this one is it illustrates John Edwards from Residex always talks about not trying to sell at the top of the street. So you've been silly if you're trying to set street records. So he's talking about selling at the 70, 80% mark. Hence the reason that the 90s and the eights, nines and tens are in the red.

And this is, I mean, this is interesting because, you know, this is in one street with 40 houses on it, there's between a million and 500,000. So go you if you can find the $500,000 property. And that's what we kind of show in utilizing that RP data, professional data, we can actually go through and we can actually look at the prices of properties within the streets and of individual properties and then maybe even target do a door knock or a drop to a targeted property so you can actually get down to target the individual house. So yeah, there you go. Hope that helps.

Mandy, good report.

So there are some resources that you might look at when trying to work out where to put.

All right, hands. Oh, there we go. Thor.

Hey, Thor, how you going? Got a microphone.

Got an awesome name.

I know.

Not looking good.

Hey, Thor, do you want to type a question in whilst you get your microphone working?

Not so much. All right, I'll keep looking. Okay. What have we got here?

Okay, so Than, do you have a microphone? Than you've said you've got a property here. Do you have any ideas of how to improve the kitchen? So let's pull it up, see if we can unmute him. Always on the phone. Hey, Than, are you there?

Yes, hello, how are you?

I'm good, I'm good. And yourself?

I'm good. Good.

I don't know, maybe don't know the signal that now it's. I can hear now.

Yeah, loud and clear.

Is it. Is it. Than. Or I pronounce it.

Yes. 10.

10. Okay. No, got it. Okay, so maybe get rid of that. Yeah, we just. So he's given us. Is this a property you own or you are buying?

I got a property I own.

Okay great.

So we can share it with everyone.

So if we, if we put it over on the screen everyone is not going to go out and underbid you tomorrow. I overbid you. Okay, great. Let's bring it over. So you want some ideas. So you bought this property with the view of renovating it I gather.

But I'm planning to in the future, maybe within two years. But I got some ideas because the kitchen and the bathroom maybe not so good. And the garden.

I reckon you're a tough task master. It looks pretty good to me. Okay, tell me Tan. Why?

Bit dated. Bit dated.

I can see the shower doors give it away, don't they? So tell me what is the pricing disparity? What are the renovated properties looking at like in this area, you know in fixtures and finishes for the kitchen.

I have not study so deeply.

Okay.

But I feel the it quite small in line and no special figure to compare to other four bedroom house which is I got now very low rent but I accept to rent it out. Very quite low number. Yeah, it's a medium rent now it's about 350 but I only ran at 320 because the quality of the kitchen and the bathroom is not so good. That is the agent, the agent feedback to me like that.

Okay so when you purchase this property tell me what was the strategy? Why did you target this area and this property.

Beginning. So I have no idea. Just sell it on realtors.com and I saw the grow rate for the 4 bedroom house I hire and I emotion.

Okay, well he's very honest.

Yeah, that's good. Thank you for sharing that. Well let's. I guess the thing is I'm going to. I'm going to steal.

Yeah, go ahead.

I'll come across steal the ownership of the screen again. This is the kind of I guess information that I would try to have a look at Tan. So what I've done is I've just gone to realestate.com I put in Pakenham which I'm assuming we're in. Yep. I've put in house now this is a four bedroom house. So let's just have a look at you know maximum four bedrooms and usually I want to get rid of the. So I've got 300 properties here and now when I just fix my Criteria up a little bit. 292. So there's a lot of houses. Let me get rid of this and have a look at other. So 292 properties on the market. Houses on the market, and 149 of them four bedrooms. So half of them, four bedrooms. So we're looking at, we're looking at newer style properties. So these are all kind of. Although yours is a little bit more dated. You know, this was, this is kind of around that price point that you had. So let's just have a look what their kitchens look like.

Yes. And let's kitchen it. I think it's almost better than mine.

What address are you there?

I went through a few inspection and I feel that the kitchen, the medium kitchen will be better than that.

God, I thought that was the same kitchen.

I know. I don't know how to pull this one up. Maybe I can. How do I do this? I want to show you that we're. That John and I have got two screens here. We're looking at the kitchen in this house and we're looking at the kitchen in your house. And I gotta say, other than an extra 2 foot on the, on the kitchen countertop here and a little bit more of an overhang, you know, your stainless steel fittings look a lot better.

It's definitely not the same listing, is it? No, no, I was gonna say because it's so simple.

So what we're trying to get a feel for is, you know, obviously your agents are, you know, know the area. So you bought for 3:48 or something. So I want to get a feel for 23.

Ben.

I want to get a feel for what, you know, that higher end of the market. The kitchens and the, the bathrooms are looking like.

This looks like a newer.

So this is a new property. So this is really. Not really comparable either. So I'm looking at an older style. So these are, are. There's a lot of new properties out here, isn't there? 5, 20. So this is like a whole lot. This is like 70,000 over the market. So what I'm just trying to do, and this is a very flat kitchen. I'm trying to get a bit of a feel for, you know, what the established better style properties are looking like and what those kitchens are looking like. I mean, the one we just looked at at a little bit earlier I would say is definitely comparable to yours. But then you want to be looking at what the rents are and what the improved rents are that you can get. So let me just see if I Can pull up one second, I'm going to pull up another. Let's have a look here. John, I think this would help so if we could.

A little bit left.

Yeah. Because what we want to know is really what properties are renting for. And I just want to see. I'm just getting into RP data and I'm going to share my screen and I'm going to be looking at Pakenham. Sounds like a good TV show.

Yeah. What are we missing?

The wind at our backs? It's not black sails that's for sure. Okay, we're looking at houses. So we've got 21,000 properties in Pakenham. If we go to four bedroom houses we've got 4,000 of them. Say what square meter it is? 565. So we've got a block size maximum, I'd say around about 600. Because we want to make sure that we're comparing apples with apples. So we go from around about four and a half thousand properties down to 2,500 by refining this. So what we're getting here is a little bit of information and insight of what is happening in the area. So we can go through and have a look at once again some sale history. So we're looking at the sale history of properties that are almost comparable and these ones are a little bit higher. And we can even go down to looking at properties in your street.

Bendrive.

Well maybe we won't go to your street. Doesn't seem to be any other four bedroom properties there other than that one. So you know we've got. So what I want to have a look at is what comparable properties are actually selling for, what's on the market at the moment and what they're renting for. So we've got once again those four bedrooms coming up. This one's listing price is 480, which is higher than yours. Same size block, same size section. So let's see if we've got any photos here to just see what their kitchen looks like. Yeah, so very flash kitchen. Let's just go down here and have a look and see if it's rented at all. So we've got sale data and occupied. So it wasn't rented. But what we're also trying to see is what the rental properties are looking like. So you know if we come over here to the rental tab, let's see what four bedroom. So you're getting, how much did you say you're getting?

320. Saying the agent could get 350 if it was a bit better.

Okay, so it's 320 and it's 350. And we were looking at what's on the market at the moment. So we've got 340s, 390s, four 20 20s, four tens. So we've got some higher prices. And he's saying he can get 350. So let's see if there's something that comes up around that 350.

Price point.

And let's just have a look here.

Lots of great names. Blue Horizon, Wayne.

Obviously they had someone. Okay, thinking, thinking, oh, 63 photos. So this tells me that it's probably been rented out as well. So, see, I just. I've got to say, for an extra $30 a week, not much. I gotta be honest with you. I don't think there's anything that's really wrong with your property. So, you know, it's. It's. Rent's been going up.

You could always paint. That's be a cheap way just to spruce it up a little bit. Paint the kitchen.

Yeah. I think the back. I think the backsplash is probably a bit dated.

Splashback, we say in Australia.

What did I say?

Backsplash. That's what the Kiwis say. That's what Todd says.

Oh, my gosh. There you go.

My.

My husband's a Kiwi. One of the other things that I just want to have a quick little look at here. There's a new. Actually, no, let me go into that one. There was another one there that was for 360. So we looked at Blue Horizons. There are another Blue Horizons. So these are a bit smaller in block size, but yeah, so this has been renting for a while as well. So it's been on the market since March to rent. But this little beta version, I kind of like this. And it allows you to have a look at what's happening in the area. So I want to see what's been for rent in the last six months. And let's just close that and zoom out a little bit. So there doesn't seem to be a lot of properties that are actually renting either. So anything that comes up green shows us the properties that have been rented in the last six months. Months. So there's a couple over here. So, yeah, this. I know, it's interesting. Market. Maybe I can have a look at.

So we know percentage of renters.

Yeah, let's just go and have a look. 3810, 35,000 people. Lots of properties. Close your eyes while I zoom through. Through separate houses, 88% three bedroom house, you've got a 51% so you know there's still 36% and want four bedroom and rented 28%. I usually have a filter around about 30% but you know there's renters in the area. Just that the reason I did that little research because when I pulled this up there's not a lot of properties for rent.

Do you want to have a look at Ripe house and bring the map up because that might, that might tell us if that's a popular pocket which is high home ownership.

Yeah, let's have a look at that. Let's hope we can do this.

Hope we can get in.

Yeah, I actually might, yeah. Let's have a look at sub view 3810. So just looking quickly at the properties for sale here and let's just do some houses and four bedrooms. So if we zoom out a bit we've got a lot of four bedrooms houses for sale that are coming up. So we could possibly go in here and have a look at what they look like. Let's just have a look at. So there's quite a few. We've got 9011 results. Quite a few results for the sales. There's quite a few four bedrooms.

Big suburb.

Yeah, it is a big suburb isn't it? So properties for rent. Let's just have a quick little look here. 107 houses for rent at the moment and 76. Wow. 76, four bedroom houses for rent. So there's a quite a few four bedroom properties for rent. I don't even know where that been. Where is that? Off Army Road. Let me see if I can find Army.

Army Road. Near a few lakes.

Near what?

Near a couple of lakes.

Okay, I'll go looking for some lakes. It's a detective work. Oh look, I found it in drive.

There it is. There is.

Found the lakes. They helped me. All right, so there's nothing quite in your area. I can see we've got what a train here, 350. Is it a bus? That's a bus. 350 week rent we got here. 350 a week rent, 420. So these potentially properties that are in your zone or in your area, area close to where you are and they're renting at 350 and a bit more modern.

A little bit, yeah.

You know still I would still consider that you know, comparable to yours. What do you think John?

It's a, it's a touch. It's not much, not much in it. It's a touch better.

350. Look for an extra 30 bucks a week. 10. Yeah, I, I would possibly probably put some money into the bathroom and the shower screen and the bathroom and painting that rather than, you know, wasting the money on the house so you can see the bathrooms look a lot better than your bathroom. And I'd be more inclined to even consider that than, than I would be. I would be to waste some money. And you could, you could drop 20 grand on a, on a kitchen quite easily or be convinced to do that. So I just think, as I said to Vitali, having that strategy around why you're buying and how this property works into your goals and how it's going to get you to your goals, I think is more important than kind of thinking there's some improvements I can make, so let's make them. And I just, I'm not necessarily seeing pricing disparity.

Oh, it's going to take a lot of weeks at 30 weeks, 30 bucks.

A week to make some money back even if it costs you eight to ten grand. I, you know, I don't know. I. You may not have, you may not have the optimized property in the sense that it may not be the best in the, in the area, but we're not after the best. We're after just a bit better than the median. And I think you could probably spend maybe painting those tiles and replacing that shower screen would. And painting the window frame from the timber look and making it nice clean and white. You're probably going to add more value and less rental. Objection. And be able to do all that for less than $1,500 with the shower screen would be my best equity. Yeah. So I'd be more inclined to look at that.

You mean that you. If I want to revalue the house within two years, come we need to do a little bit catch up to get money back on the refinance or just leave it there. No chance to go there.

Just having a really quick look and obviously I do a whole lot more research and hit the ground and look at properties and it looks to me like those higher priced properties are actually newer properties and a lot higher level of fit out with fixtures, et cetera. So I would personally think that you may not have the pricing disparity there to justify spending the money and being able to release an equity. And you also asked us to comment on the landscaping. They spent a bit of money on privacy screens there, possibly because. Because the backyard has no grass. But, but you know, I think that, you know, even Just tidying up with the row of. With the row of, you know, some kind of vegetation here and covering off. Covering off, you know, that kind of yucky bit. You know, these are plants that no one really needs to tend to, which is always good. You've got the shade cloth in there. You know, you could go to expense and plan the planting lawn. But I just don't, you know, I don't think that that's going to be as much as an objection. I don't think there's money really. You know, I don't want to say that categorically because I haven't done the research, but just having a really quick assessment. I don't think there's a pricing disparity to justify you spending a lot of money on this.

Yeah. Thank you for that. Thank you.

Okay, My pleasure. Dan.

Thank you.

Okay, let me just. We're going to do this. Good day. Now, I saw one more hand up.

We've got the last question.

Yeah, I think it's gonna have to be.

Oh, now this is interesting name. I saw this before.

I'm gonna say Eliza Vita.

Eliza Vita. Let's see if she can correct us. Eliza Vita. Hi, Elizavita. Hi, Jane. Hi, John.

Hi.

Thank. Thank you for your webinars. That's a really great, great.

How did we go? How do you pronounce your name?

Elizabeth. Eliza. Eliza. That's easy.

We'll go, Eliza. It was an interesting day. How can we help you this evening? Okay, so we're about to purchase a property.

We would like it to be an investment, but it's not really 100% investment properties. It's a very big challenge that we will be bringing our parents from overseas in a couple of years. So this could be a home for our parents and we just make most of it in case they don't come here or like, you know, things can change. So we are limited in choosing the area. So there should be area nearby. But we are lucky enough the area where we live is actually growing real risk rapidly because they are building marina here. So it's going to be really a lot of tourists attracted here and prices just skyrocketed in couple of years. So we were looking at the suburbs nearby, but not where we live exactly because until recent moment we were limited with borrowing capacity. But suddenly we actually even made an offer for one property but haven't exchanged contacts yet because we were discussing some issues with the house after building inspections. And during this time suddenly I got a really good job offer. So we actually, our borrowing capacity is different now we can borrow much more. So I'm sort of a bit of confused now. So we decided to buy in specific area and now that we can actually borrow more feel a bit lost whether we should do this or that. So just wondering if you can give advice to specific suburb.

Whereabouts are you Eliza?

So we live in Shell Cove. 25:29.

Oh I just saw that on a report that came up. Didn't I see that on one of those prediction reports?

Well this cyberpeace is growing really rapidly because they build a marina here and it should be ended in 2018 so they expect really big growth. But just for us probably investing in shock coffee is not really a good idea because not many houses are rented out. So just really we just feel a bit risky and currently there are a lot of development going on so you know we're not sure we are going we will be able to compete and still prices are very high anyway so we are more looking at the areas nearby but just wanted to get some.

More specific advice guys if you could.

Okay, you see the postcode there? That's what's come up. Oh there it is there.

Shelco35 so 2 so that's the area where we live. That's the one that is going to grow rapidly but we were looking at another suburb located nearby. It's Bar Kates 2528.

Yeah, look I don't, I'm not familiar with this area but I have been reading some reports about risks associated with some of the marinas and things that have been going in different areas. So you know, I know that I'm just going to see if I can pull up this. Actually maybe you can.

Pretty impressive rental yield.

Yeah, you might pull up Ripe House for me over here and just log in. So one of the things, I guess Eliza, you're buying a property with the potential of it maybe one day being for your parents but right now, you know, it's an investment property and I'd almost, you know, you're limiting where you can afford to buy or where you need to buy based on the fact that if you bring them from overseas, you know, you want them to be close. So you're almost sacrificing the potential investment grade property for the choice of why you're buying the property which is for them to live in at some stage in the future that you, you can't, you know, you can't really quantify or justify if it's going to happen or not. So you know, in my mind I'm always trying to Buy an investment that is going to get me to what my goal is. If your goal is to have a property for your parents, then you kind of to some degree almost sacrifice some of that investment growth or investment potential that you have. The fact that you're in an area that is high growth and is actually being growing for you based on the marina may not necessarily mean that the other suburbs in the area do. And as I said, I don't fully know this area or I don't know this area at all and I haven't done research in this area. So what I would want to know is what do the suburbs look like around it and what kind of characteristics they are. Because in one mind I'm kind of like if you've got the money and the ability to buy a really good property, I normally would like to buy in an area that I have some diversification as well. So I'd also be looking at don't have two properties in the same area with the same dynamics and the same population. So that would kind of worry me and I think, think that there's an argument to be said if and when your parents do come out, if you've made a lot of money from an investment property, then potentially you could sell it or you could rent a really good property near you. And I know that some of the older style people from overseas don't like living in rental properties, then that might be a problem. But I'd almost hate for you to sacrifice the potential that you have and even the borrowing capacity that you have have for a future, future plan that may not come off. So as I said, I'd rather know a little bit more about the area. So what I've done in here is I've just pulled up Ripe House and tells me there's 28 properties in Shell Harbour and the typical property is a four bedroom property. But I'm more interested in this case in actually looking at what the other areas are around it. So we've got Shell Hub Harbour here. Let's have a look at Shell Harbor. And we've got what, Dunmore and Blackbutt.

And you can exclude Dunmore. It's basically big farms.

Okay. And oh, Bass Point Quarry. As a blasting engineer I knew I have, I have blasted in that quarry many a time. Okay. So the surrounding suburbs that we're looking at here that you're talking about and where you're putting offers are these some.

Of them here, Barricades. Yes, it's. You just need to zoom out a bit. So sorry, zoom In, Zoom in. So it's. Yeah, yeah. So it's between Shell Harbor. So barricades, if you scroll. A bit up. Up. Are you going down?

Sorry, am I going up now? Yep.

So barricades and then a bit to the right. So there is the reserve. Yeah, you can. Yeah, Barricades.

Yeah.

Okay, we're almost there. Where did it go?

I'll just zoom out just slightly. You're on Barrack Heights at the moment. Yep.

Okay. Okay. So we're talking around this area here.

Barricades.

Yes. Okay, so. So one of the things that.

I.

Would try to have a look at here also is the type of occupancy. And the renters are usually in yellow. So the redder the area is, the more owner occupiers there are. And it tells me here that, you know, this area, Barrack Heights, has a lot of owner occupants, 30% tenants, though, up here we're looking at this area that has what, 50% tenants and that. What's that suburb? Lake Illawarra.

Okay.

So I'm just kind of getting a feel for what's happening in the. In that area so that I can get a, I guess an estimate of what we're looking at. So this Barrack Heights and Shell Harbour. So here you are. And so. And yields give us the information about yields as well. So higher yields in this area. So just like pulling this information out just to have a quick little look, it seems that this is where more of the renters are, whereas you're down here where less of the renters are. So, you know, I guess on the surface area or the surface, it kind of would seem that you've got, so 16% tenants in Shell Cove Flinders, we've got vacancy 1%, which is great, but 22% tenants. So this kind of gives us a bit of information, I guess. My thoughts here, Eliza, are the fact that you need to be very defined about what you want to achieve, and the fact that your borrowing capacity has gone up doesn't necessarily mean that buying a more expensive property in the same area is actually going to get you to a financial goal. It might get you to your personal goal, which is a nice property for your parents to live in. And if them renting is off the table and your borrowing capacity is quite good, I'd almost look at diversifying out of this area that has the one kind of dynamic for the economy and looking to spend your money elsewhere. And I think that's. I don't know if I can add much more value to that.

Yeah, sounds like sound advice to you.

Does that sound like it makes sense to you, Eliza? Yes, yes, thank you. So I just think if you've got a property under the offer at the moment and you've got an outclause from your building inspection, then you might want to consider that. But I think you really need to bring it back to what you, your long term goals are and just define whether it is a property for your parents and you'd like to be able to rent it. And if you are, do the analysis. Even getting into those census data that I showed earlier and getting in and finding out what the different percentage renters are. Now bear in mind this is 2011 data, but it hasn't changed that much. But have a look at the data for the different suburbs in the area and target the areas where hopefully there's over 30% renters and then target the typical property as well. So, so if it's a four bedroom house as we saw in Shell Cove, then that's the type of property you're buying. So you're giving yourself the maximum chance of being able to resell it if you need to resell it and your parents don't come out and you don't want that property more. But I think if it is a financial decision, I'd encourage you to use your borrowing capacity and potentially look in other areas with some good growth dynamics. Having said that, shieldcove has some good growth dynamics as on a prediction report. So being associated with that could have a lot of legs to it. But I just, I'd minimise my risk by having the typical property and being an area where there is the demand for the renters.

Okay, great.

Thank you. My pleasure.

Thanks, Eliza. Bye. We often see that, don't we? When? I mean, the scenario that came to mind is when people would like to have a holiday house, for instance, and they also want the rental property. And it's that thing of serving two masters that creates the dilemma.

Yeah, it's kind of not.

It's not either a perfect holiday property and it's not a perfect rental property.

No. Final question.

Oh, well, let's take it too because we've had a late run, so we'll just be really quick. Hands has got his hand up, so I'll just see if we can unmute Hands.

Hi, Hands, how you going?

Great.

How you going?

Good, thank you. How can we help? Just a quick question.

I kind of was late getting onto the webinar and it's my first time.

Just wondering, is there a place where.

I Can later watch this at another day.

Is it through the.

Can we watch it through our program?

Sure.

Are you? Yep.

Your ultimate guide to renovation.

Yep. Yeah.

Yep. Perfect. So you'll be able to go there and resources.

Sorry, top left of page in the membership area you'll see that there's webinars and we've got 20, 14, 15 and 16 there.

Yeah, you can listen to.

So you can spend a fair bit.

Of time, 36 months and 2 hours each on them. But yep, this should be up definitely by Monday. No problem.

Yeah. Oh, great.

Okay, thank you.

All the best. Bye. Hope you enjoy. Wonderful so far.

Thanks. Great.

Oh, you missed the best part in the beginning.

Yeah. And I just don't want to rewatch it about it tomorrow.

Okay, see you later.

And we've got one more question. Ellie says if we were to make an offer on two properties and were successful on both, how do we get out of one of the offers?

My throat. So do you want to answer?

Yes. Well, that's when you make offers ideally subject to due diligence, but there's a couple of subject to you can do, which Jane knows every single one of them. But I like due diligence because it means that if I just wake up in the morning and don't feel like kind of closing on the deal, I can just get out of it.

So some of the clauses you might put in your letter of offer, Ali, is I guess things like subject to 14 days finance to a lender that's acceptable to me because alternatively they could just come back and say, well, I'll give you a finance at 20%. Things that I might have in there might be subject to my solicitor looking over the contract. Now solicitors can find loopholes in anything and I often find that the due diligence by your solicitor can get you out of most things. Subject to a pest and building inspection. Subject to this offer is subject to expire at 5 o' clock on Thursday afternoon. You know, you can have so many different clauses in your offer, but the thing is, the more you have potentially more objection that the landlord, not landlord, the vendor will have and it's like, oh gosh, you know, there's two offers here with a 10% down and one has a 14 day finance and one's cash in, then the easy answer is the cash in. So you know, the more things that you include can actually exclude you. But to protect yourself, I always have pest and building. I always have finance and sweeten it too.

I mean one of the things, things that Scott loves to do is he my business partner. He staples the check to the office.

We've always done that. Yep.

Yep. So even though you've got those other clauses in, it does show you serious. You know, you've got whatever it is, 30, 40, 50, 60 grand on a check. Yep. And try and get the 5% deposit or 2% deposit, too. Don't. Don't give them 10%.

No, exactly. Always put. And, you know, just silly little things that have. In the contracts. My. My solicitors have always gone through. Through. And they've got something like, you know, late fees. If you don't, you know, settle on time, it's usually some stupid percentage, which means nothing when you're signing and popping the cork, but when it gets to the pointy end of it, and all of a sudden, you could be up for a lot if you, you know, you delayed settlement. And at the moment, just to give you an idea, guys, CBA is taking 14 days to pick up a file. And I'm a diamond mortgage broker, which means that the volume I put through makes me get to the top of the pile. And we're still looking, you know, and I'm getting assessed in 10 days. Apparently, it's the pink diamond as well that I supposed to be aspiring to. But I refuse to put all my lending to someone just based on.

All right, listen, Things. Listen to this. Jane, you'll like this from Mags. It completely blows me away. You both get through so many questions with such encouragement and understanding. Each and every week, each and every webinar. Thank you.

Unless you didn't say, and you went over time again, which we do so have a chance. So, yeah, thanks a lot. And Leslie, we'll get back to you with that question later, too. But guys, I really appreciate you being online and so many of you have stayed right to the end. And in actual fact, we have more than we started for, and we've lost a few as well. So, look, I really appreciate you being here. And as I said, you know, this is really for you to answer your questions. I know sometimes when I was starting out, I had stumbling blocks, and sometimes it's the silliest thing you got. No one to answer the question to, you know, can stop you moving forward. And that's what we're here to encourage our premium clients.

Leslie, I just saw you had a question. You're from the Ultimate Guide to Renovation question about Ripe House. If you just pop an email to supportourpropertysuccess.com that are you in the morning, we'll make sure we can get you sorted out there. Perfect support at your property. Success.

And guys, as I said, you know, we've got this workshop coming up up in Melbourne this weekend and Brisbane if you want a deep dive and really get in and spend a quality time with John and myself. And I think someone last week Chidi off on the box in the back and really got a lot of extra development things. But you know, if it can help you, and it's not for everyone, but if it can help you, please, you know, come along and join us and please, you know, look for that email in the next couple of days for the webinar next Thursday. And I on how to make your property make you money in multiple ways. So that's it for me. And that's it from him.

Yes, that's it for me. I reckon that's about it. I'll tell you. Oh, I was going to give the. Not working either.

We'll give you the June. Oh, I'm off to Fiji in a couple of weeks, so I'm pretty excited too. So I might have to send. Might have to do a video from Fiji from the beach and make everyone jealous.

That's what you can do when you have a good property portfolio, folks.

Yeah. Mind you, I think it's the first family holiday in three years. I don't want to oversell that. Okay, guys, all the best. Have a great night, have a great month. And for those who've got the final module of Ultimate Guide of Renovation coming up next Thursday night, I hope you love it and I hope you've really enjoyed the experience of being in the course with us and we've just loved seeing all of your stories in the Renovator Network and make sure that you utilize that because you, you've got lifetime access to all of it. All the best.

Great. Thank you. By.