Your Property Success Mentor May 31-05-2018

Hello. Hello, everyone. It's Jane and John here. I'm going to hand over to John to do his wonderful introduction for our May mentor Corps. Hey, John. 17. Thank you. John, I'm just going to pop you down into the lobby again so I can get your camera reconnected. Hi, guys, it's Jane Slacksmith. Here it is, May 31. So we are now almost six months into the year. Oh, my gosh. How amazing. Now, I just want to do a quick little call out, make sure that we're coming through loud and clear. Can you see me and can you hear me? I need a thumbs up or put a hello, please into the comment section because we want to make sure that you can actually see us and hear us and that would be fabulous. So let me know if you're there. I can see we've got a couple of people online and that you can hear us and see us. Now. We do have a little bit of a delay on this, so we're. When I'm looking over onto the other page, I'm just checking out and making sure that we can actually see you. So, John, I see you now on screen, which is fabulous.

Oh, good.

So, guys, as I said, this is May. John and I are really excited to be here with you and it has been such a incredible month. And this is our special monthly mentor calls that we do for all the members of your property success club, the the Ultimate Guide to Renovation course, and of course, the Investors Choice diamond and climate clients. So, you know, it's a huge welcome. We also welcome this month a lot of people from Location Masterclass who've joined us, John. And we are so excited to have launched that and have so many people give us such great reviews. It's been fabulous, hasn't it?

It's been great. And it's been great to have. I mean, one thing to be able to share that and get people using it, making it more accessible. It was only accessible, you know, inside a $3,000 course before, you know, a month ago. And also just the influx of people that it's brought into the Facebook page, too. So it's great to see. It's given a real burst of energy and excitement inside the Facebook page, hasn't it?

Absolutely. And I think that's been one of the really exciting things for us, is that not only are we able to finally pull all this information that we have and all the access to the regimented, systematic way that we can invest in property, but we also have the ability to put the hand in the hands of everyone, all of, I guess the data that the experts have. So I speak to a lot of buyers, agents and data groups and they talk about this big data and their analysis and if you're one of their premium clients, they obviously will use that data to find information out for you. Some of them just use the information for themselves, let's face it. But finally, it feels like we're democratizing property investing research by putting this into the hands of so many. So for me this has just been such an exciting fruition of everything coming to reality, which has just been so much work. But it's just so exciting to see so many people join our community, isn't it?

Definitely. Definitely. I don't know how many people saw the Facebook you did with Louis Christopher during the week. There was also basically he was motivated to start his career based on a bad experience that his grandparents have had with some kind of spruakers in the Gold Coast, I believe it was. But so he's right behind the Suburb Selector software and right behind Location Masterclass and he was in during the week chatting with you Jane, just about what all that data meant, which is really interesting. But it is, it's putting really powerful data in the hands of everyday people, everyday investors and showing them how to use it. So not to be underestimated how powerful that is.

And I guess the other thing, for those of you who are new to the club, welcome. It's great to have you here. Please look around. What you might find is a question. Your burning question has actually been answered before, so please do a search on the discussion underneath. Actually, I'll just share my screen with you. You might even be able to have a look at what we see here. But when we actually have the, What would I call it, the Facebook inside the Facebook page, what you'll find is that there's actually ability for you to search the group for certain information. So maybe someone wants to know more about the dot map for inst. And up comes the dot map. And so all the conversations that people are having with the dot map. Now one of the biggest conversations we have about the dot map is that. And I'm just going to pick up on this really quickly is that often what happens is people say oh my gosh, I've got your investment property magazine. And when I go to the back of the magazine, I don't see all, all the information that I really want to see because you tell me to have a look at 10 year past growth. Well, guys, I know this is really, really confusing, but when you actually look at the numbers at the back here and it says 3 year growth, 5 year growth, and then it says 12 month growth and then it says average annual growth, you can see it just here, average annual growth, that is the 10 year growth. Now just to validate that, in case you don't know, you can go to the beginning of this section where it talks about the data and how they actually create the data and do the data and you can validate it here because it tells you that average growth, annual growth is based on the last 10 years. Now we also have a few questions this month, John, where people say, hey, you know, the data that we're getting in the back of the magazines isn't the same as the data on RP data. Well, let me tell you, this is the latest. Your Investment property magazine, it's for June and we're looking at data that's provided from March. So you know, this is three months old. The data, as you would have seen when we actually did the location, the conversation with Louis Christopher the other day, what we found, John, was the fact that the data that he's providing us is up to the last day of the previous month. So it's more up to date. And in this moving market, three months can make a big difference, can't it, John?

Absolutely. Yeah. It was great to hear that explanation. It's often a thing that can cause people to get stuck. There's lots of things that can cause you to get stuck and become a bit of a roadblock for you. That's a big one if you're not 100% trusting in the data. But he had some really good explanations about how that data is used and what are the telltale signs if the data might not be right, for instance. So he talked about, and you're going to do a better job of describing this to me, but why not just share what he talked about with Middle park, or was it Albert park when he was talking about the. The top and the bottom of the market?

Yeah, actually I think the question came from Adam and the conversation was, you know, gee, you know, this price seems to be really significantly different. And I guess the thing is where the markets are small and we find this in Adelaide as well. And it's one of the reasons we took Bendigo and Ballarat off the suburbs software, because it's such a small market, when you're having two or three sales and one's at a million dollars and the other at 4 or 500,000, it actually skews the numbers. Quite considerably of that median. And it just wasn't consistent data. So, you know, we've got a question this month around, you know, those regional areas and how we would do the research on those. And I want to pick that up and discuss it. But, you know, the interesting guest sharing and please go, you know, check out Louis Christopher. Go into the club. Putting it into that search there.

Yeah. Go through and explain it really well.

I thought he loves data. Obviously, I think he loves data more than I love data. But he's very, I guess, engaged in the data. And when we get questions, we often go back to him. And he's very generous in doing that. Our information is customized, so if you actually go onto the SQM research website, it's all around postcodes. So we actually obviously make a huge investment and have him monthly to download that data as suburbs for us, because we know that's the numbers that you guys need to know. The only numbers that are per postcode, which they can't separate is vacancy rate. But we're getting so much information, and I think that's really great. Now, for those of you who are new and potentially have watched the last four years of these monthly calls, I know a lot of people have been in the club and go back to the resources or in ultimate guide of Renovation and tell me that they. They listened to us on the call two or three years ago. They listened in the car, on the treadmill. John, it's nice to know that we don't ever change our story. We're always teaching the same meat and potatoes boring fundamentals of property investing because it's the same in any market.

Yeah. If it's too exciting, you're doing it wrong.

In the words of Warren Buffet. So, guys, go back and have a look at the last monthly calls. They're in your dashboard if you're in the ultimate guide to renovation or in the your property success Club, because we make sure that we share those. But every month we talk about what we've been up to for the month. We just had a quick, brief chat about Location masterclass. John, what else have you been doing this month?

Well, the competition that we've been running has been consuming a lot of our time. So for those of you who don't know, we've given away a done for you service. Now, if you're not familiar with the done for you service, that's where we actually do the research on your behalf. Exactly the same as we do in the location masterclass process, which is also in the ultimate guide. Start off with your criteria. Do the dot map narrow those suburbs down progressively using all of those good things that we know about, like number of sales and low vacancy rates and percentage of renters and pricing pressure and all that stuff. And then once we've narrowed it down to the suburb and the pockets and the actual streets, we then go out and hire a buyer's agent on your behalf who's an expert in one of those areas and basically manage the process all the way through. Filter the properties that are presented to you, and at the end of it, you get a really good investment property that's in a really great area that's potentially going to outperform the market. So that's the competition. It's obviously the service that we offer, too, but that's what we're giving away. $25,000 worth. I should just mention there just. There's been a touch of confusion around the service. We offer another service, which we started with, which led into this full concierge service, which is actually just the research component, and that's only $5,000. And I just wanted to confirm that there. It's the. What we're giving away on this competition, which is $25,000, is basically can take someone from no investment knowledge whatsoever to saying, right, here's. Here's some properties to choose from kind of thing. So it's very in depth, obviously takes a huge amount of time and. And commitment to carry it out, so hence the. The higher price tag. But. Yep. So we've been running this competition. We had a webinar last night. The interesting thing about this competition is you get one entry if you enter once yourself, but every time you share it, you get 10 additional entries, which is how people get to the top of the leaderboard. Have you got the leaderboard there? Because this is what we prizes for last night.

Okay, where have I got here? Oh, here we go. Leaderboard.

There we go.

This is our leaderboard, which is really quite exciting. I think the nice thing about this is that there's. We can see some familiar names on there. I really encourage you to get in there. Now, I'm not going to point out people, but I can tell you that we are using a very sophisticated software program, people. And I'm not going to call you out by name, but they know that if you're using the same email address or that same location. So if you're trying to use your 5 different email addresses from the same computer, you only get one entry. You can't make your own entry. We know who you are. We see your name pop up a few times a day. It's not working. So please refer to people, because you.

Only get the 10 inches if the person you referred actually joins the competition as well. That's the way it works. Those guys at the top there, that top four, they've really been neck and neck for the last fortnight, basically a week and a half. So it'll be interesting to see because we've got some new prizes which you. If you saw the. The replay for last night's webinar, and I think we might be able to find a link for that in a second, Jane, when I'm off camera. But, yeah, there's some more prizes that have been announced for the top 10 and the top two on the leaderboard. And, yeah, huge, very valuable prizes, including free location masterclass and free Ultimate Guide to Renovation.

Fabulous. And this is the. Imagine, this is the link that you just sent to me this morning, John. So if you would like. Yes.

For the replay. Yeah, absolutely.

Put that straight into the page. So the really exciting thing, guys, there is that, you know, and I've just got the name of the competition up there along the bottom. But of those 20 leaders on the leaderboard now, they may not win the way you win. And I'm just going to show you this one more time. The way you win is you actually have to have an entry in yourself. You have to choose one of these cities that you believe is going to have the most capital growth in the next five years. Your answer and my answer have to add up. And I started the top, and I work my way down. And if I'm at number 25 and no one else has come up with the same as me, well, number 25, who's not even on the leaderboard, could actually win. But the exciting thing is last night we gave away over 2,000 $4,000 worth of prizes to the top 20. The top 10 are going to get another huge over a thousand dollars worth of prizes. The top three. The top five are going to get incredible prizes as well. Top three and top two and top one. I mean, I think the top one person's going to walk away with over $6,000 prizes, and they may not even win the $25,000 prize. So, you know, this in itself is absolutely insane. And I'm so excited about this. You know, we've got things like Washington Brown is actually giving away a Quantity survey with $715. We've got Yabonza, which is a new platform for rental management. They're actually going to manage your rental property for free for a year. And they're an incredible startup and what they've got to offer is just insane. We've got magazine subscriptions, we've got books, we've got one on one call with hotspace consultant renovation expert Jane Ells Bennett and she's going to actually sit down and give you a conversation about where the best bang for your buck is. Oh, what else we got? Location masterclass number one actually gets a copy of Ultimate Guide to Renovation as well. Like it just keeps it. We've got the ultimate property investment calculator from Patrick Sheet. Now I use that to top 20 last night. Yeah, Yep. And the Renault save card as well, which is now an ambassador card. I'm getting discounts on my movies, not only my white goods for my renovations from Harvey Norman Commercial. So, you know, getting in. Guys, we really would love you to be part of this competition. We want to grow our community. This is the way that you can refer a like minded friend and help us do just that. Because you know, we're really committed to helping people and helping yourself. So you know, please, you know, join in, be part of it. I'm putting the competition information on the screen itself. Don't spam people. We're not into the whole spam thing but you know, it's really, really easy to enter and we would, we'd love to have you as part of the competition, wouldn't we John?

Sure would. Sure would. Sure.

Anything else exciting you've been up to?

No, that's really it. Unless you can remember something. It's been a long week.

It has been a long way. Well, I have to say a long month even. But I mean, you know, John and I were here in the office, what till 11:15 last night trying to get this, the webinar link out. Now I think I did just get that webinar link, John, and I'll just confirm I just confirmed that with you. But that link, if you guys also have a question you'd like to ask us, please click on the guest link up the top of this post and get your earphones and your microphone ready and we will. And you can, and we will put you on as well. So all very, very good.

The main thing that's been going on, besides the composition that I've been involved with during the last couple of weeks is Russell's renovation in Queensland, which if you've been following along, he's been doing a blog and gee, I have to say he's a he's a great worker, Russell. He gets in there, rolls up his sleeves and he's got his mate up there, which he, he won't tell me how much he's paying him, but I think he's paying him enough to.

He was lucky to get a bed.

Yeah, yeah. In the flea infested place. But it's a whole lot better. It's looking a whole lot better now. If you go to that, the blog there, you would have received some emails. It's actually in the, down below in the Facebook thread. You can click on, have a look at those pictures. But what's great is you don't often get to see a, you know, you get to see the pictures afterwards. You know, if someone's had a successful renovation, you don't often get people, you know, putting it on the line and, and showing it out there at the start and through the whole renovation. And yeah, he's aiming for a fifteen thousand dollar budget with that. So it just goes to show, you know, what rolling up your sleeves and actually getting in there and doing some sweat equity will do. You know, he's taken four weeks, three weeks off work. I think it might even push into four weeks. And yeah, and he's going to walk away with, I mean, I think he's hoping for, you know, fifty, fifty to seventy thousand dollar value add to the property from that renovation. So well over, you know, two for one. Which is what we always try and say that you're getting $2 back for every $1 you spend. But it's been great. I really enjoyed watching it and I've been very impressed that he's, you know, he's a hard worker. He gets in there and he gives.

It a go and, and has it been interesting interviewing him? There's been ups and downs.

Yeah, he's, he's been good. I mean some nights he's just been with, with because we've, I think we've had maybe four calls so far. We've got a one, one or two to go. And some nights he said, I just can't speak tonight. I'm just, you know, I'm spent. There's no way I'm gonna, I'm gonna be able to chat tonight. I said no, fine, mate. Reno always Renault first. You know, you've got to get the work done first. Then when you've got time to chat, we'll chat. But yeah, generally he's been, he's been in good nick. He's got his, his dog up there, he's had lots of visitors he's had, you know, Viv popping in and Jody Dunstan popping in and yep, he had Heather come up with her friend from Victoria for a few days there.

But that's his lovely wife.

Yep. And you guys, great to watch.

Absolutely. Andro, we've got a little secret special announcement, but we're going to be sharing that with some of the people in your investment property magazine too, which is pretty exciting. So you'll probably see some, some more of Russell becoming the superstar that he never wanted to be, but has limelight now. Just a call out. We are really, really keen to be part of your success as well in your renovations. And we are always looking for case studies, aren't we, John? So if you have a renovation you've got going on, we would just love to be part of it, maybe, you know, add a few of our thoughts and expertise and really help you out and get you to do something similar like a video vlog and, and you know, before and after photos. So please keep that in mind. This is offer. I know people. There's a few people on here at the moment. Got a few comments, Lou. We're here for about an hour, so I know you're at lunch, you might have to watch a replay. But anyone who's doing renovations, we are, we're really keen to, to, you know, really showcase what you're doing and be there for you. And, and I know we've already started putting some plans in place to helping Russell out with his valuation document as well. So there's some really exciting things that we're doing at the moment in helping those people do case studies.

Well, let's just talk about, maybe talk about that for a moment because there's lots of things, lots of little great tips for the renovation itself that have come throughout that blog and there's still quite a few to go. But why don't we explain to people what a valuation document is and why you would do this, particularly when you're just going to rent the property out. Why would you bother getting the place revalued post renovation? Jane?

I think the thing is for me that when I'm looking at the renovation journey and I mean, you know what we teach, we're always talking about the fact that you need to put in the effort and try to buy below the market in a fast moving market. That would be probably the one thing in the tried and strategy that I would compromise on. We're also then trying to add value and then we're also then going in and we're in a good capital growth area. So for me, there's so much effort. And those of you who have been party to being in the location masterclass or the club or in ultimate guided renovation know how much effort can go into that. I know a lot of people have joined us on the workshops and some people, as you said, John, just don't have the time to do that. And they just want to know the suburbs and the streets and the suburbs and have all those alerts set up for them and hence why we have our done for you service. But you know, I think the thing is we put so much effort into finding the property now, arguably some people don't, but let's just say we have the property and then we put so much effort into the, the renovation. And I know it comes down to sometimes conversations like you might say, well, I have this tap where. Or this tap where this is $110 and this is $95. We're making $15 kind of incremental budgeting decisions on the renovation. And we finish and we create this incredible masterpiece. You know, we create it up to what the demographic wants. We're at the fixtures and fitting standard, that is standard for that area and the comparable properties that we want to be compared against are being sold for. And then we come to the final reveal. We go to the bank and a mortgage broker and say, hey, it's time for a revaluation. It's been three to six months since I purchased this property and you know, there's been significant changes. And your broker obviously would order a, what's called a walkthrough valuation. Now this is what you'll learn obviously in Ultimate Guide to Renovation. We go through this in quite a lot of detail. But often what happens if you say, go back to your bank or to your broker and go, I need a new valuation. And it's an 80% loan to value ratio. They might say, look, we only had the property purchased six months ago. We're not going to pay for another one. So no. Or at a less than an 80% valuation. What they're going to do is they're just going to order a desktop valuation. And what a desktop valuation does is it goes through and it says, well, you bought the property for 450 and it's been three months and there's been no growth since then. So guess What? It's worth 450. So that's the worst case, hands off, nothing happens kind of valuation, the second worst valuation. So that's the top of the Potential. The second is when you actually say, okay, I do need the valuation done. You're being active. You meet the valuer on site and they say, what did you buy it for? And you say 450. And they say, how much does it cost on the renovation? You say, 30. Bit pride there because it's less than 10%. And what do they say, John?

480.

The evaluation's 480. Big mistake. So this is not what we want to do. So obviously, you know, those guys know renovation.

Lazy way to value. Like, it has no, you know, reference point. What make any difference what you spend on the renovation as to what the perceived value of the property is.

Exactly. And I mean, even little things like you might say, I've got Venetian mosaic tiles that are worth $120ameter and you paid 20 bucks of graze online. They don't need to know what you paid. It's the perception of value, not what you actually paid. And so that's the second worst kind of valuation. So you know this. And. And I would say the majority of people either fall into one of those two categories, but that's not what Russell did. So, you know Russell, we've started working with Russell on. He obviously did the comparable property prices before he bought because he understood that he needed to have that pricing disparity and capacity to add value. So he already has been monitoring the comparable prices. We have the template that's in the ultimate guide to renovation. Starting to complete that with the works that are being done. So hopefully in a couple of weeks, John, we have some happy news about what we've actually got.

Yeah, definitely. It's the way to go. And I think it's something that sometimes people just don't miss. It's that last. And I think it's because you get to the end of the job, you. You're exhausted, you're, you know, worn out. And it's just that last little push that's so important to do. And you can do one of the things that. Because the other thing you can use this for potentially is to extract equity too. And I know you've got ways of doing that by using the same borrower, Jane, which I'll let you speak to. But things the way you can really, or some of the ways you can really try and get a favorable valuation, apart from everything that Jane just described with the comparable sales is through that network of real estate agents that you've built, getting them to give you valuations and sticking that in your valuation doc as well. So With a picture, you know, a nice headshot of those guys, their agency, and then them saying, I estimate this price to be between this and this, you know, so if you've got. Because if you think about it from the valuers point of view, they really want something that's plausible to take back to the bank and they want to make sure that they've got their back covered. They don't want to be exposed in any way. But if they can be assured of that and if they can present a good argument to the bank and I think they'll be happy to, if not leverage your research, they'll be happy just to have it as a reference point anyway to their own in most cases, you know.

Absolutely. And I've got some exciting news actually, John, I know I've just got a call out. Michael, Teresa says hello. So hello and welcome to all those people that are watching live and watching on replay. We know it's lunchtime and not everyone can get 12 to 1 o' clock off, but we have some questions that we're going to go through. But John, exciting news. I actually had a business development manager from one of the major banks, one of the top six banks in here yesterday and said, Jane, I think I finally have a product that is going to make your. Your renovation. Clients are delighted. Now I've got to tell you, I was pretty excited about this. So this is actually a home improvements loan. Now what usually happens is when you want to do a renovation, the bank says go and get a fixed price contract and you then are forced to go to a builder and sometimes they will let you have maybe one or two or three, you know, the carpet comes from someone else, etc. And you know, they might look at the end value or the cost of what you're doing. You may not have capacity, capacity at this stage to borrow the lot. And we know, as you know, DIY cosmetic renovators, often you've got your plumber, your electrician and your carpenter and your tiler and your painter and your floor sander. Who else is there? John? There's the renderer, there's the roofing guy. You might have like maybe 10 men or women on site that you have different contracts with because you've been able to negotiate better deals with each individual rather than one big builder who's taking a bit of a click on the top as well. So these are for the DIY renovators. So this new innovative kind of product, they're actually going to loan you cash out based on the fact that you're doing a renovation, the improvements without actually needing to see those contracts. So it's almost like a monthly. Because some builders do monthly invoicing, some do cost. Plus it just makes it difficult. So there's a couple of criteria. You know, give us a call if you, if you are interested in doing something like that. But I think I might do a whole bit of a special on it. But essentially they'll give you cash out up to 80% of the land value and it could be non structural or structural. So you know, they'll do evaluation but you know, so it's kind of innovative products, really excited. I think it's going to help a.

Lot of people development. What they do is they send a quantity surveyor out and they, and they say okay, well is it we saying it's up to this stage and we can release the next money to the builder? And then the quantity surveyor goes out and says yes, bank it is at that stage. Will it work in a similar way or doesn't it need that?

Let's just say you have a property worth, you know, $500,000. So as long as the total loan is less than 80%. So as long as the total loan goes up to say 400,000 and the total loan is less than 100% of the land value. So the land value has to be 400,000 as well. So let's just say you've got a $300,000 loan currently on your $500,000 property and you want to do a renovation. So you wanted to spend $50,000. Essentially you ask for cash out for the $50,000. So your loan goes to 350, which is less than 80% of the total value of the property, which is 500 and the land value is 400,000. So it's less than that, 100% of that. So they'll give you the $50,000. Okay. There's no contracts, there's no, you know, the broker and the client obviously have to sign off. The fact that they're, you know, what they're doing is renovations and that's what's the money for. Now if you've got a million dollar property and you're doing a $600,000 renovation, they're going to have to start having some questions around the fact that maybe this is not right but you have to service the loan. Obviously it's not money for jam, but the fact is it's quite innovative for us DIY renovators who actually pull in all around trades or we've Got some mates that we want to, you know, have do the jobs etc. So I think this is, I'm excited John, innovative loan products we're going to see come out if you're into that kind of stuff. We'll head over to investorschoice.com make a time and have a chat. We have questions. Oh, I was going to tell you something. Okay, I'm going to go a bit voodoo here John. Bit voodoo, bit airy fairy. So I've been practicing meditation people for some time and I just wanted to share with you. We were talking about the month that has been and you know what we've been up to. I had the privilege of winning a Mercedes Benz for the weekend and I have to say I'm not a car person. I've got a Ford, it all just works.

Open on a freezing day.

I had the hot seats that was all okay, so I had a coupe E something or C something, I don't know but two door, was it two door? Yeah, two door, really fancy car. So not a car person but very excited and, and as I said I buy a car once every 10 years so I'm really not, you know, someone who is into that kind of thing. But I won it which is fabulous. And it was. I've been practicing my meditation and you know we obviously have a lot of location masterclass students that have come in and joined our community recently and in during my meditation I was seeing they're thinking abundance. I want abundance to rain down on them and success with them finding these properties that they're really after in their heart's desire to create their financial freedom through property investing. And I was sending out, this is what my intent was but the message I sent out was rain down abundance. So of course I head off to a conference, there's 10 prizes I win a Google Home, a Google Mini 450 Garmin running watch and a Mercedes Benz for the weekend.

Unbelievable.

Mercedes Benz. Mercedes Benz. Yeah, Mercedes for the weekend. I'll get them all mixed up. So there you go. Abundance. So I'm wishing abundance upon you. So I'm now meditating specifically on the community. I'm being specific. So you got to be, got to be careful with this universe, you know, you never know exactly what's going to go, do you?

No, that's right. Just got a report that I'm echoing. Is everyone getting that? I might just try and change my microphone settings if that's the case.

Okay, I'll put you down. See ya. And I'll have a chat about Some of these questions. Okay, so I've got lots of questions this month which is really, really fantastic. And I think one of the ones that we had a couple that had come through that kind of got, came in just in the last day of month, last year, last month. So we missed out on them. So I want to be able to answer these. So I had a question here from Michael and Michael says a friend of mine had a building inspection done prior to signing a purchase contract on a residential property. Everything obviously turned out okay. Following signing the contract, she discovered a bowed boundary wall hidden behind a bookcase caused by a next door neighbour's tree trunk on the boundary pushing against the wall causing this issue. So this raised two questions. On what basis can a purchaser decline to settle on a contract without any legal comeback? And who's responsible for the damage caused by trees on or near boundaries and for removal? So it's a really interesting question, John, because it gets into the legal world and. Can you hear us, John?

Yeah, I've got you. Hopefully that's got rid of some of that echo. Can you hear me?

Yeah, really good. So it's a legal question and we don't go into the legal world guys, because the fact of the matter is that we are not solicitors or lawyers and every state has different requirements. But having said that, Michael, I didn't want to leave you hanging. So I had a chat to a friend of mine who is a solicitor and had to talk to her about, you know, in general, what, what does this mean? You know, how can we deal with the fact that we've entered into a contract, can we get out of this contract if the property isn't really what we thought it was going to be? So what would be your thoughts, John?

Sorry, because I was up, Jane, I missed part of the question.

Okay, so here's the thing. I had always thought, buyer beware, buyer beware. You do your due diligence, you sign the contract, you know, you haven't quite settled yet, but you really, you know, if you do renege after the finance clause and all your clauses have expanded, five, you really up for potentially depending on the state maybe you know, paying them that they could get to hold the 10% deposit. You might. I've heard horror stories of people who have tried had to get out of situations that have to pay for the re. Marketing fees and real estate fees, you know, so there's my. I had always had a sense of fear about this, but this is an interesting thing. So when I spoke to the solicitor about this she actually says, you know, without knowing specific, all the disclaimers without knowing specifics and what state you're in, et cetera. In actual fact, it is possible to get out of a contract before you have actually settled. Now, there's a lot of intent around it and a lot of research. But she said number one thing that she would be doing is getting an expert report on the situation. So, Michael, your friend would have an expert report are done prior to settlement that potentially could come up with the fact that yes, this is damage and potentially it could be discussed that it was covered up or concealed or not apparent. But apparently conveyances can only look at terms and conditions and talk to those. But solicitors can actually go through and actually look at the entire context of the arrangement and the context of what you are actually looking at for the contract. So if your context is that you believed that you had done all your due diligence and your reports and you thought the property was up to scratch as per those reports and reports indicated nothing and the context was that an expert has then said that this is actually a long, prolonged problem that was there and potentially disposal, disclosed. I don't know if they can say that. But what the actual issue is, it is possible to get out of the contract. You don't necessarily have to settle on a signed contract. So, John, I found that really interesting. The thing is, once you've signed, you signed, it's your property. So something new for me, I don't go into the legal issues. I thought it was a really interesting question.

Yeah, it is interesting. It's kind of good to know that there is potentially an avenue there as a last resort. Obviously you wouldn't do it deliberately because you could easily get yourself into trouble. And that's the thing with those offers subject to also, as you always need to be very careful that your solicitor has looked at those before you put those in so you don't get yourself into a sticky situation like that. Yeah, but yeah, it's interesting. There is a lot to law and it is different in every state. So always pays to have some really good professionals on your team.

Absolutely. And so I've had a chat to a solicitor. I reckon in the next couple of weeks we might have a Facebook Live interview with her. If you've got any legal questions, she will be more than happy to have a chat. So that's pretty excited. So watch for your announcements of that and make sure you're available. Next question. I had a question. Now I've got no questions here in Facebook at this stage, I'm going to be pushing on. Oh, Michael. Teresa says it may be a French name and it's actually Michelle. I apologize if that's the case, but it sounds like you're. We can hear you now, John. So it's all good. Now the other thing is that I want to. Just want to make sure I think I'm showing something that I don't want to be showing on my screen, which is my competition, which is all over and done with. Okay, we've got another question, and this is from Michelle, who actually says, how do you get data between renovated and unrenovated properties? Now, Michelle, great question, because obviously we're looking at pricing disparity when we're actually looking at properties and we want to be able to make sure we have enough capacity to add value and renovate. So one of the things that I do is I actually use. I personally use RP data to do this. And the reason that I use RP data is that it allows me very quickly to look at recent sales. Now, I did a deal review for one of my mortgage clients recently. He'd put in an offer and. And they had wanted to have some capacity to add value. Now I'm not going to what suburb shall we try, John? I don't even know.

Essendon's an old favorite.

Okay, Essendon, let's go. Essendon. So we're going to go to Essendon. Now, this is how I would use RP data to do it. Now obviously this is going to be a whole lot easier with the data that's being compiled here for you. But you can do this in domain and you can do this in real estate. Just takes a little bit extra effort.

Are you going to do a street chain or how are you going to do it?

I'm just going to go through John and do the sales history.

Oh, yeah. Yep. I was going to suggest a street if you had. If you wanted one.

Okay. Do you want me to do a street?

Well, no, you do it the way you. You were going to do it. I was just. I had. I've got one for you if you need it.

Okay, well, we'll do it both ways. I love looking at different ways of doing things. Let's just look at the three, three bedroom houses which are the characteristic houses for essendon.

John? Yep.

So 12,490 properties in essendon. There is 2,000. Oh. So it may not be the standard. Let's just have a look. 2000 three bedroom houses. Let's have a look at four bedroom houses.

They're four bedders.

Are they 1200s? No. There must be a lot of townhouses as well. Maybe. Okay, okay, so let's just have a look at the three bedroom houses in Essmond. So if we start looking at the sale history now, what this is being defined here is the last six months. So obviously you can bring that up a little bit earlier, but it gives us an idea of what properties have actually been selling for. So, you know, we're talking, we're talking big bucks here, you know. 1.17. 1.1.7. So here's a kind of a townhouse. Detached. No, it's a detached dwelling, but it's not one of the great big McMansion. Not McMansions. Beautiful homes. So we've got some, a large kind of capacity is a newer type of property here. Now the interesting thing that I would be further defining this by is the size of the property. So, you know, you probably go in here and you say, well, I don't want the properties that have already been subdivided. So I want to look at properties that are 600 to 800 square meters, because I think that they're actually, you know, what I want to buy. I'm not looking to buy small amount of land. And we can see here we've got the 1.7s, 1.5s and I mean, it's probably not perfect, but I mean there's, you know, almost $150,000 discrepancy there. So we really are at the, the begin to town in the market. But I would then go through and have a look at what the properties look like. So I think we could probably say this is definitely unrenovated. John, as a unrenovated property, it has a old style bathroom. So this is to see. This is 2016. So just make sure this gives you an idea. Also there's obviously a bit of movement here. It gives you an idea because they pull through the data on all of the times this property has been listed. So obviously right now. Yes.

John, sorry to interrupt. Would you mind? Can you see that that banner is still running across the bottom of the screen? It's just cutting off some of the picture, that's all.

Now I have turned it off here, so.

Oh, okay. You've done what you can. Okay, that's fine.

I'm just. Maybe I'll just delete everything.

I'm liking the look at this place so far anyway.

Yeah, for 1.5 million. Right. So November 2016. So what we might do is, you know, you might go up to the code current listing and have to look at the current listing. So this is 2018-2018-2018-2018. So the reason I'm looking at this, look at the cracks here in the walls. This is what you're going to get for over 1.3 million. So what often happens if you went back to 2016 and you saw this and then you jump to 2018, you might see that it's actually been renovated. So any valuation that you would generate from this would give you. So I would then go and generate my own valuation from this and find out how much they actually think it's worth. But the reason that I would do that is that potentially the valuation doesn't stack up because they have renovated it since the last lot of photos. So there's a really quick way that you can have a look at, well, this is an unrenovated property which they've got on the market at the moment for that 157. And then you could potentially have a look at one of these, which is 17 and see if it's renovated. Now. I would say it would take. Going to take a whole lot more than $150,000 to renovate to this level. What we just saw in the other property, older style kitchen to some degree, or retro, they've got, you know, it's a whole much different. So is there capacity to add value there? I would really question it. Definitely not flipping it, but I would really question if you could go from a 1.5 to the 17 with as much work as needed. So that's how you kind of look at the pricing disparity, Michelle. And as John said, you potentially could just go down to the street level and have a look at what's been sold on the street over the last year, for instance. So you've got all of that capacity and you can also use this market compare as well. So you can actually go over here and look at properties that are on the market, have been on the market or listed and are currently listed and what they were listed for and what the actual sale price was. So there's actually some opportunities here for you to actually do some more competitive information. So really cool tool, John.

Yeah, it's great, isn't it? I love that property too. I love some of those deco properties. They're beautiful. They do up well too. And to think just a few years ago they were just pushing them over, no one wanted them and now they're, they're back, which is nice.

What was old is new again.

Yep. That's right. I was going to say there that unfortunately we've never had what, what we really wanted on our wish list was to someone to come along and do the analysis on the market and look at what has been renovated and what hasn't been renovated and give us some kind of pricing disparity tool. There's been some great, like Residex's tool was really good. It worked on the spread of values at, on a, on a street level and then said, okay, these, these are the suburb with the most number of streets with that spread of values. I'm just simplifying this, Jane. I know it's a little bit more complicated than that, but it still didn't, it still didn't actually work out what was the unrenovated houses and what was the renovated houses. And there's been a few people that have tried to do it with based on keywords and the property listings and all of that kind of stuff, but to my mind no one's quite come up with a system and even that Residex now has disappeared. So unfortunately we're back to manual processes of trying to work out, you know, the spread of values at a, at a street level by just looking at the properties as Jane has just showed you there.

Look, I've just, I've just. Oh, I wonder if I can show you. Man, be really sneaky here. I just purchased the RP data, pulls out a lot of data obviously, and you can buy their data. I think it's like fifteen twelve thousand dollars a year for a specific state for their current year. But they've now just allowed you to start purchasing it for one month only. Now we're currently doing a investigation, Dundun View ultimate property purchase service for someone. And as part of that, I actually bought one of their reports to have a look at what they actually had available. And it's really kind of interesting because there are a number of different reports they have and in theory we could customize a report with them to have a look at what the pricing disparity between properties that are 25% below the median and 25% above the median. So to see if there is any capacity. Now, John, if I could potentially pull up this report in a moment if I've got a chance. Let me just see if I can do it. And I may or may not be able to do it, but I did do a report on this and I pulled it out and it looks like I can't just get it really quickly, but I might, might try to find that for you guys and share it with you whilst we continue with our conversation. Because I think it's really good to actually have a look at what reports are available. And obviously, you know, if we're purchasing these for our clients and doing these, the information as the reports become available, it's great for you guys to actually see, you know, what is out there. So let me see if I can find that report whilst we're having a chat. And if I can, I'll show you fairly quickly my analysis on that.

Well, while you're doing that, if you like, question there. What about removal of tree and liability for removal? Assume that's.

I'll let you. I'll let you answer that. Does that to do with the legal conversation?

Is it. Is that, Is that a previous conversation or is that a new. New.

I imagine that is the legal conversation that you're saying. What about. Is there a liability to remove the tree for that boundary?

I see, Right, okay. Sorry, I thought it was a new, new and different question.

That's a question question for us to ask our people, our lawyer when she comes on board.

Yeah, yeah, okay.

I'm just. Okay, let me see. I think I might just have it here, John. Yes, I do. Gonna share this. All right. The excitement does not stop. Not that. All right, let me show you what this looks like. RP data. Apologies if I'm sharing out of school what I should not be showing people who have not purchased it. But hey, you know, we love our community. We show you guys stuff. So this is the data that I purchased for Victoria. So this is kind of what their. The information looks like. So if you were going to buy this and it's about. It's 15, I think it's $1500 or $1200 to buy it for the month. So I've purchased this because we're trying to find the right property for the person to buy. And first of all, we need to find the right suburbs. And I was just interested in having a look if there was the ability also to have the pricing disparity as part of the conversation. So as you can see here, number of properties, sales turnover last 12 months, number of sales in the last 12 months, six months, three months, one month. And there's a lot of information there. The median sale price in the last six months and the median sale price in the last 12 months. So this is kind of interesting as well, the changes in that short period of time. You know, what's. What I do love about this? This is the only way that I can actually get the 20 year growth as well. So you can see here that the 20 year growth, and I think that's really kind of cool because, you know, as John Edwards told us, get the growth for as long as possible. We can only usually get 10 year growth the back of the magazines and obviously from SV QM Research, but there is 20 year growth here. Now you might be looking at this going, wow, look at all these suburbs. I've actually already ordered them in order of their growth, just in case you're wondering. So that's why the ones at the back top look kind of high. We've also got. So this is the columns that I started moving around. So this is the median sales over 12 months and they've got the 25% sale median price and they've got the 75% median price. So if you can imagine what we've got there, John, we've actually got the median here is in the middle. So if that top one is $350,000, now 25% below it is 259,000, but 75% above is 610. So there's actually quite a large gap above it. So if we're saying, you know, we're renovating from below the market median and renovating to just above it, there's actually some capacity there potentially to make a profit. So what I said is if we were going to be doing a 10% cosmetic renovation, so I put a 10 calculation in there. What is the value above the median? You know what is. If we wanted to add $2 for every $1, is there capacity to do that above the median? And is there above the median?

So you're starting at the median and then adding that 10%.

Yeah. So above the median. But then I also ran it for above the 25%.

Yep.

So I actually said like if we were at the 25%, so if we're at the 259 and we use the median for the area, $35,000 is there capacity to actually make money? So if we go down to say Ashfield here, and I said, hey, you know, Ashfield is $495,000 as the median. Now below the median is $468,000 and above is $538,000. So usually we spend about 10% of the value of the property on the renovation. So $50,000. Plus this is 550. Now we'll be talking that we're going to have to get up in the top realms of what the property prices in this Suburb are to actually make any money. So could we make it off the median if we bought it the median and we couldn't negotiate a buy below? No. Could we make it off from 25%? No. So this is an absolute fail as in no don't even consider looking at. So I just wanted to share with you that I think it's kind of cool. This is what we do with that done for you service and the ultimate property selection service. We go through and do all this analysis and, and you would get all this in a report. So as it says on the cookie, baja, it is done for you. So I think that's, that's kind of cool. I really just wanted to share that with you because I like that.

That's good. Kind of goes some way to. Yeah.

So you can do it manually with Domain. Exactly. Well, you could do it easily, John, with Domain or Real Estate and go through and look at past sales and look at what's on the market moment. You can speed it up and as we know, you know, speeding up the process kind of helps with RP data and having all the data in one place. So you could speed it up and pay for a quick result. And as you know, you know it's $150 per month to access that through us and. Or you could spend fifteen hundred dollars for the month and have this. And start the interrogation at this higher level. So you know, you pay for what you get. Someone else has done all the work and you're kind of paying for the effort that they've made. Or you could get us to do it all for you and it'll be an after. Okay, so next question. John, I'm going to.

I've got a next question here. What is the next question?

I have heaps. Okay, I've got a question here and I kind of like it. It's from James because he mentions my hometown, Dubbo. And so James actually says one of my main points is to find the right suburb for your budget. And that takes a lot of work and, and research. If you have a limited budget, say $300,000, then how do you get lots of information on regional areas such as Bendigo, Tenworth, Dubbo, because they're not in the suburbs. Lecture software. This is assuming that you can't afford other paid subscriptions like RP Data. So once again, you know, really good question. And just for those people, I'm just going to share my screen again, just for those people. You know, the kind of conversation that James is saying is, you know, if I look at all the cities. So obviously we have in the suburbs, like to software data updated from SQM research every month. We have the capital cities and we have some significant regionals. Gold Coast, Sunshine Coast, Geelong and we have Newcastle and Wollongong. So as I said, we took Ballarat and Bendigo out because of the small statistical number of sales that really made the data not look right. We want you to have right data. So if I actually look at all SAR data here and we put in the 300,000, it's going to apply to.

All of the data providers, isn't it? I mean, this is a fundamental problem with smaller regional areas.

Absolutely. And let's just say, you know, we can potentially go up to 330. We reckon we can negotiate our way down and we're happy to go. Oh, gosh, how far else would we go, John? 50Ks from CBD?

Why not?

So, you know, all of these suburbs come up. Now obviously there's a lot in Adelaide that come up and we've got all these Adelaide suburbs come up. We have quite a significant amount in Brisbane. We're looking from 17ks out to 40ks in Brisbane. So, you know, we're looking Brisbane. We've got a couple there in one in Canberra which is only 7ks out from the CBD. We've got Darwin, we've got Geelong, we've got the Gold coast, we've got Hobart Hubbard, Hobart, Hobart, Hobart. We've got some in Newcastle, so we're pushing out to Hexham there, Horse, Horseshoe Bend, Kurri Curry, even my old stomping ground and down to Perth. You know, there's obviously some opportunities there. Look, I really encourage you guys to please jump in, have a look in the comments below. I put a link, link to the webinar that we ran last night where I actually went through and spoke to five different experts about where they think in the next five year the capital growth areas are going to be. Now, it was reserved for the people who entered the competition but hey, John, we love our clubbers so we're going to give it to you guys too. But getting into the competition, I don't know if we've. We've still got that competition running across the bottom, but I'm afraid I can't remove it. So, technical issue.

But the other thing I was going to add there, Jane, is it's. And it's not the case with this question, but it's just something that does come up quite regularly is, is that people start perhaps with the wrong question so they Say, you know, well, the Trident strategy won't work for me because I'm in, you know, Shepparton, for instance.

Yeah.

And, and perhaps that's the wrong question to start with. It's, it's like, okay, for, for my money, where's the best place I can park that for the best possible return rather than trying to force a strategy to suit your area.

Yeah, it's kind of sounding the wrong way around really. Good point. Well, I mean, those of you that have obviously had a play around with Location Masterclass or Ultimate Guide to Renovation, you've seen the suburb selector software. I've just chosen a couple of suburbs, as you can see here. And this is, I mean, once again, John, it's about paying for convenience, isn't it? Going to the back of the magazine and trying to find all of the, the surrounding suburbs and that data so you've kind of got a digital dot map is a little bit difficult. But I've chosen, you know, suburbs in South Australia and Tassie and I think near Canberra, not Canberra, New South Wales as well. So, you know, you could actually go through here and actually do quite a bit of analysis on these suburbs and find out for yourself, you know, what, what you actually wanted your criteria to be, if you were truly agnostic, you know, 41% of renters, fabulous number of sold per year, 53, bit low. You know, you might come down, you have a look at, you know, number of sold here is 120. Great. But there's only 17% renters. Could be good for a flipping strategy, 21% renters. So, you know, of those suburbs that I chose, you know, There's. What's that? 15, 15 sales, I think. Yeah, sold per year, 15 sales. But there's a lot of renters. But you would go through and you would start doing this analysis and saying, well, I like the fact that there's 44% renters here and there's 82 sales that might be a suburb. And this really makes you agnostic because you can't see the name at the site. And you go through and you have a look at the census data, you have a look at what the community looks like. You have a look at the fact there's quite a significant amount of semis. So you can see here that 3 bedroom semi is actually the typical property. So buying a house may not be in your best interest because this is what is also on the market. You can start looking at the rental yields, you can start looking at vacancy rates now. This is really high would concern me a large amount of renters. Now I would guess if I saw this lower average weekly income and the high amount of renters that there would be a higher amount of public housing. So, you know, you could go through and do that analysis. But I think the question that you really had, James, is okay, I'm actually just in regional New South Wales. In actual fact, I'm looking in Dubbo, my hometown, call out or Tamworth, et cetera. How do I get that data if I don't pay your RP data? Now there's a couple of other ways that you can do that. You can go to your investment property magazine. Now the problem with, and I'm just giving you different techniques because there is a lot of data and there is a lot of places that you can grab this information. If I went to top suburbs and I went to New South Wales and there'd be some pop up. Hey, there's Tyrone, our mate from Washington, Brown. And I said New South Wales. And I entered my suburb in here. There he is again. And I said, I want to find Dubbo, New South Wales. You notice there's a Dubbo east and west big town, it's 50,000 people there. We start looking part of the west, John. We start looking. You know, we've got some information here about the median price, the annual capital growth. Annual capital growth should be 10 year growth. Guys, when they start talking annual, they're usually talking 10 years Number of sales. So you want to be working out 797 sales. What is that? Houses, units, is it annual? And they usually explain what they are here we can see here. And it's information is coming from CoreLogic. You know, this would be a rolling number of sales. So yep, it does look like there's a significant amount of properties that are being sold. But here's some interesting data. So here's the house's quarterly growth, annual growth, as I said, that's 10 year growth, median advertised rent, number of sales. So I mean you've got the option here to go through and have a look at the demographics and have a look at what we just talked about. The average age you can go through here and you can have a look at what recent sales have been there and recent rentals. So there are free websites to do that. The only thing I'd say is, you know, the fact of the matter is that we've kind of condensed it all down for you. So if your suburbs or your areas that you're not looking at and you know are not available on Say the Suburb Selector software, and having all this in one place for you. Yes. You can go through one by one and do that. And if you go to the Suburb Selector software and you go to our resource center now, this is the same for customers. Sorry, sorry.

You just said if you're talking about the spreadsheet.

Yeah, yeah, yeah.

So inside Location MasterCard or a Location MasterClass online, you just. I just corrected you there because you said if you go to the Suburb Selector software.

Oh, sorry. So sorry. If you go to Resources in the Location Master class. And obviously location masterclass is part of the ultimate guide renovation. There's like 12 modules and ultimate gutter renovation, but this is just a few of the location component. Module 2, 3 and 4 has got some covering in here. So if you go there, you will actually see this spreadsheet. So this is the blank Suburb Selection spreadsheet. Now, this is how all our ultimate guide to renovation students started, wasn't it, John?

Sure was. This is what it's all came from, this spreadsheet.

Everyone kept saying, can you do it.

Even this in a couple of iterations?

Yeah, absolutely. So let's just have a quick look at this. So basically, you know, and it still needs to change a little bit because, you know, obviously things change as well. But this is the kind of information that we've collated for you and you can start filling in. So you could do Dubbo or East Dubbo or West Dubbo or Newcastle or Adamstown or Kari Curry. So you can still building this up for yourself like we all did in the beginning. Now, we also had some prediction reports that were available way back when from the Residex report. So these no longer are available. So all you need to do is, you know, hide the stuff that you don't need or you're not looking for the local government area. This is just that median for the local government area so that you can compare it against the suburbs, the total suburbs. Obviously in the suburbs Flexor software, you can see all the surrounding suburbs. This kind of information, you learn this in Location masterclass, Ultimate Guided Renovation, where that comes from. Suburb View, the rental data. So basically what we've done is we've put in the spreadsheet all that information that we collect for you on your behalf of SuburbSelector Software. So really what we're saying, James, is it's still possible to get the information. There's still sources of to get it. Domain Real Estate, and as I just showed you, your investment property magazine has that data for you, and you can actually Use the same criteria and the spreadsheet that we've got there for you. So don't feel disheartened if you've got a regional area. Yep, that's my information there.

Yeah.

Okay John. Oh, I think we've got one more question. I've got one more question. Has anyone got any questions in? Let me just have a quick little check.

No more than I can see in chat.

Okay. Oh look at that. My call to action will never go away. We're sitting there with the competition. At least everyone's going to know about the competition, right?

Yeah, that's true.

Okay Joanne Jo Jo wrote an email. Now I don't know if we've actually answered this or not in the previous one. Have you got any ideas to help me with selling a property? The current tenants are very keen to buy the house in Queensland.

Yep.

And I'm thinking it may be time for me to. The only thing for me is it's in my self managed super fund and as of next March, next year I turn 60. Oh my God. And I won't be paying any capital gains tax after then. So how could I structure this to be a win win for both of us? Also I'm not sure yet until I speak to the real estate agents next week the best way to go forward. Real estate agent valuations or is it my valuation or is it their valuation? When you do valuations yourself are they very conservative? So a couple of questions there John. Do you want to have a chat?

Can I speak to the easy. Yeah, can I speak to the easy stuff?

Yes.

I'll leave the technical stuff for you. The first one I will make it reminds me of a, a story from my in laws actually they had the, an owner of their current house who had raised their family and had a house come back to them and want to buy the house off them and they were, and they had started discussing numbers and so on and they asked my advice as to what to do and my advice to them was to that you should take it to the market and test the market for what is current value or what is market value. Because market value is purely what if you know in a decent campaign given every opportunity what the market will pay for that property. And I think that's the only way you can be sure of whether you're getting the right price for that property and if that person, in this case the current tenant or in their case my in law's case, the previous owner is able to come out of that competition that, that market and, and Buy the property, then they're buying it and you're getting the best, best market price for that property. So that, that would be my, my point there. I'd always, I'd never sell a property myself, happy to buy them off market, but I personally would never sell property off market because I always want to know that I'm at the very least getting market value for my property, if not a little bit more with some perceived value thrown in. Joe.

Because we love perceived value, don't we John?

Yeah, that's right.

Now I'm going to have to defer Joe to your financial planner for your question on a capital gains tax and self managed super fund capital gains tax. Obviously if you've held it for over 12 months then you're only having to pay 50% of the capital gain if you have lived in that property previously. There's the six year rule and the percentage breakdown of when you've actually moved in and out. And if you ever have a home that you're converting into an investment property or vice versa, guys get a valuation at that time, so you know what that value is at that time. Makes the calculations a whole lot easier. I think though, you know, it reminds me of a conversation I had with a client just last year week when we were trying to do a deal assessment for her on a property she wanted to put an offering on. And it brings me back, John, to the module we have in the Ultimate Guide to Renovation about negotiation and the win win and the fact that they actually have this fabulous property, a great tenant and they want to buy it. And let's just say we're taken John's advice there and gone to market and checked out the real valuation of the property. There is the potential to delay the settlement. So you know, we're talking about March next year. So we're already, you know, May nearly June tomorrow. So you know, there is an opportunity to have a long settlement and there might be the opportunity for you to get a market valuation done now however means that you decide to do that. But it could be that you have it based on today's value. You might incur a little bit of growth. You may not, it comes down to how you actually value it for both of you. But it might be that they buy it today's value and you have the confidence that you can actually settle after your 60s. So you're actually making significant savings now.

I see.

And the reason I bring this up, John, because I think there's something a bit more to this and why I want you to speak to a financial planner and a solicitor is because when. With capital gains tax, I know it's when there's an important differentiation about when you sign the actual contract compared to when you settle. So arguably it could be when you sign the contract. So if you actually sign the contract now and you don't settle too much, the capital gains tax could be around the period of when you sign. So I just want you to get some clarification on that. There could be an option they take out, could be another way of doing this. But I don't want to be telling you to go and get a contract signed now with a late settlement because you won't be paying capital gains tax, because I think there's a. There's some issues and loopholes in there that could actually come back to plague you. So please, Jo, go and have a chat to your financial plan planner. Does that make sense, John?

Yeah, it does. And it's a good reminder that you. You've always got to remember not to be only negotiating around price, but to be negotiating around terms simultaneously.

Yeah. Well, I want to share now. I'm going to share a page here again, because Gita was very generous in giving me a review on the Facebook page regarding this conversation that we had around a purchase recently. And the really interesting thing here was that she came to me and she said, I found my dream home. And I mean, our absolute goal is to get people away from their money worry so they can get into the lifestyle that they want in the dream home. She's found it, and she really, really wanted this property. And we had this conversation around, you know, how can we. How can we actually have what they want and what we want? And so we talked about. And John, I think it's module six, that negotiation and auction techniques.

Yes, that sounds right.

The win win in the Ultimate Guide of Renovation. So we actually went through that exercise and we said, okay, so what's a win win? You don't want to pay as much as they want you to pay, but you really want to secure this property. You don't want to have to put the deposit down now, but you would like to have access. They have a number of tenants on this property. It's a larger property, and they know that some of the tenants are going to leave. What about if you come up with a perfect scenario for them? So we actually crafted this incredible scenario around the fact that she would pay rent from the date of the signing of the contract to when they wanted to settle and sell their home in November. And we actually calculated that rent out. Now we're talking like $400 a week for, you know, I think it was going to cost about $10,000. So in theory there was that $10,000 in rent that the owners had to go, well, I'm not losing that. But in return for that, they actually wanted to be able to do up some of the properties and have access to a shed to bring their stuff up. So we talked about doing that and we talked about what the people wanted. The people had. Had sold their property, they bought a property, they had some pricing pressure, but, you know, they had some lean leniency as well. So the property been on the market for three years. So there's some negotiating power. So we talked about a win win. So do you want this? I could pay your price, but, you know, pretty much you're going to be paying the rent when these people move out. And I'm still going to settle in November or I can pay what I want to pay. I'm going to give you all this extra stuff and you know, your peace of mind, deposit that you need, etc. Etc. So it was really a lovely.

That's brilliant. Yeah, that's really great. What was the mechanism used to do that? Did you do the three offers, the. That template or two offers?

Yeah, we used the two offers because they were kind of convoluting. So, you know, it's really good. And she went up there and, you know, negotiated away and had conversations, et cetera, and, you know, not, not quite the outcome that she was after, but she secured the property. So we were, we were popping champagne corks, Lisa and. Lisa and Diana and I here on Monday. But, you know, the. On her behalf. But I think that's the thing, you know, especially when you get to a point we go, this is it. This is the dream property. You know, what do I need to do to achieve this? And it's not. It's a win win, and it's the two offers. Do you want to quickly talk to the. The putting in the two or three offers, John? Just around the generalization that we have in the Ultimate Guide to Renovation.

So if you think at either end it's. I guess it's. It goes. The underlying principle is not negotiating just around price. So there's often things that can help the vendor, as Jane just explained, that might be simple things like rubbish under the house or getting rid of the furniture. I've had people move interstate and part of the terms was just leaving all of their furniture in the house. And I Took care of it, you know, rather than them having to organize removal or taking it to St. Vinny's or whatever it is. So often it can be simple stuff like that. But they were really good terms that you were talking about there. So you've kind of got one end of the spectrum which is. And what most people just negotiate, which is price. Now obviously you want to be down here and they want to be up here as the, as the seller and then you have the terms and convenience in that as well at the other end. So obviously if you're giving them the best terms that really suit their circumstances, then you want the price to be reflecting that. So you go in basically if you think you've got offer one and offer three, offer one might be the lowest price with the highest convenience to them and offer three might be the highest price. So matching them where they want to be on their price, but a lot of convenience for you. So. And then the one in the middle is probably where you're going to end up on. So you try and you make sure that the one in the middle you're willing to settle on, but you've got the two contrasts at either side. So the most convenience to you might be things like Jane just described. I mean, I love the idea of having a shed where you can bring tools up there and store. I mean, that's so helpful, such practical help to have stuff like that. You can be buying stuff on sale, bringing it up in advance and that saves you a ton of money on a renovation rather than buying off the shelf. Other things might just be early access and that could mean to actually start work, you need to have contracts and so on in place to be covered legally if you are doing that. Or it might just mean early access for trades, which can make a really big difference. If you can get all the trades through prior to settlement and measuring all.

Up times, getting the, getting all the quotes done prior to settle. Settlement so that on day one of getting the keys, everyone actions. Rather than me spending three weeks getting three quotes for painters, builders, electricians, et cetera.

It can make a huge difference to the speed of the renovation. Even things like measuring the curtains, you know that, that kind of stuff where you're halfway through the job and you've then got to scramble to get quotes and get the, you know, so all of those things done in advance are a huge, huge help.

Yeah.

And so somewhere normally where you end up is. And I've had a kind of end up at each end up which, which I'm paying Kind of a really the lowest price. But I'm giving them the terms which really suit them because they're, they're moving and they're settling on another property and all of that kind of stuff. And then I've gone the other way and paid the top price for early access and, and the whole bit. So yeah, that's, but it's just a matter. And the thing that you will get a bit of pushback sometimes with the agents. You know you get agents that say oh and that's not our process. We've got our, you know, in Victoria you call it a section of 32. We've got our section 32 here. And you have to sign the section 32 and put one offer in. You're not allowed to put three offers in. I just go, well stiff, I've, I've got three offers, you know, staple it to your section 32 and present it to the vendor. You have to legally present that to the vendor, it's a written offer and away you go. Yep.

Okay. Well we've got a couple of quick follow up questions. John from Facebook. Virginia says. Let's just have a quick little look at Virginia's question. She says. Comments from the sidelines. I was under the impression that there's no capital gains tax payable for buying and selling within a self managed super fund. Regardless of your age, this may have changed. So you should definitely check out the superimposed. John. Super. I'm so glad I am not one of the financial planners trying to keep up with the superannuation changes like I think I know from banks, you know, things are changing weekly. But super. It's such significant differences in the grandfathering. It's happening every month. So good question Virginia and good advice. Please guys go and check that out. May I say it's Michael. Michael, Teresa, Michelle, if a property is in the right suburb but not in the sweet spot, according to Ripe House, is it still okay to proceed? It's under the median, but it's a big renovation required. Full kitchen, painting, bathroom, et cetera. So once again, John, you know this is a really good question because we talk about the fact that we do all this due diligence. Now just to give you an idea of all those major regionals and capital cities that we get the data from sqm, I'm looking around about eight and a half thousand of those suburbs every single month. I put my minimum three criteria in and I only end up with 180 in Australia that I would start your investigation in. So the fact that you're starting with, you know, potentially some thoughts around, you know, growth being above the city or at the city, not below. We're not looking for those real ripple effect suburbs that are way out of line, but you're also looking at maybe some yield characteristics or percentage of renters or the price you can afford. So, you know, I'm getting down to 180. That is a fabulous start. You're ahead of the game when you're actually starting to take some of the risk out that other people aren't even considering. Now, obviously, in the suburbs, like the software, John, we're getting down to what, three to five suburbs really quickly, or we're seeing our students do that. And what I'm saying is if you've got the characteristics in the suburb, you're actually well ahead of the game. The suburb is set for growth. Now we define that further and say there is pockets of potential. Now the pockets of potential might be the areas where the renters want to live. If your strategy is to buy and hold. Or it might be, John, where for flippers like what you've been doing.

Yeah. Families or high home ownership.

So homeowners, different suburbs, streets in the suburbs, different criteria. Yeah, yeah.

And so which you can adjust with the ripe house sweet spot. Right. You adjust your parameters to do the sweet spot.

Yeah. So I guess the really interesting thing is that you're already ahead of the game by getting to the right suburb so we can perfecting it and getting to the streets in the suburb that are preferable. And I know, you know, we did one of those done for you services for someone recently, John, who was looking for the suburbs and the streets to buy. And you know, we handed them over the streets and the alerts on our P data and they came back to us and said, oh gosh, there's this house and it's just. It's in the next street. Is it? Okay. And we had a look at it and you know, it's still had a high percentage. I think it was like 27 and a half percent of renters. Really what cut it out.

A few other. A few other things going for it as well. So on balance, it kind of. Which is always a juggling act that you're doing the whole time. You know, there might be. It might be just outsider on the edge, but it's the. The difference is so negligible. Plus it's got other things going for it. Like if it is families, it might be closer to the school, for instance, or, you know, so there's Always a balancing act that you're doing, which is really the human element. But because you're down to really fine tuning there, are you. Because you've started like this and you've gone all the way down to here.

How much you spend on renovation and cosmetic go 10%. Now, you and I both know we could get away with 3 or 5%. It depends on the amount of renovation needed. But the reality is we're getting down and we're saying, hey, here's the criteria, strict criteria for to find the streets. You know, it might be, you know, the criteria you have on percentage of public housing, percentage of units, you know, percentage of renters. There's a whole lot of different things that get us down to those streets. But in actual fact, there might be some other areas that are okay. But if you come up with an area that's high units, you know, low, low number of renters and you know, is completely off on some of the other things that you want, high public housing or whatever, it's wrong. It's wrong. So, you know, if you actually come up with a suite property that actually still meets some of those fundamentals, that's good. But what concerns me here is that it's great that you're buying it under median, but the big renovation that you say, that's, that's required, please check you've got the capacity to add value. So make sure you do that. Comparable properties interrogation that we looked at earlier in this.

Apples with apples.

Yeah.

And you know, in the books.

Because we do that, don't we, John? Sometimes we find a perfect property. Oh, my God. It needs the love and the renovation. I can do this. This is the perfect property. And in actual fact, the numbers are never going to stack up.

It's called. It's called confirmation bias. You think I could very right up to that. And we've done. We've had this. Remember when we were doing that inspection in Brisbane for one of the workshops and the agent came across to us and he said, I don't remember the numbers. I think it was maybe one, I think.

Yeah.

He says, and we're looking at a property that's like 700 or something like that. And then he looks across the road and he says, well, that property over there sold for 1.4. And the eyes lit up, you know, and then we had it. We put it up on RP data when we were driving off on the bus. And it's got a pool and it's, you know, it's like a McMansion. So there was no way that we were going to renovate up to that level. That was like a. A freak sale, you know, number. Number 9 or number 10 on the street billiards room.

And I was expecting which it's really interesting. Let me find my phone. I'm going to finish this question first. But if you're in the ultimate go to renovation, please get to module five. Download that quick quote calculator. There's over 20 years of intellectual property of numbers in there that John and I have put in there and shared our common experience so that you can actually calculate what you think the renovations are going to cost before you buy the property until make sure you have capacity to make at least $2 out of every dollar you spend. And if you're not buying comparable properties that are going to give you the profit and the cost and the buying costs all included in there, then don't do the renovation. You know, you've got too many things that are out. You're out of your sweet spot and the renovation is not going to make. Make you value.

And there's always another opportunity.

Always. Now I don't know if you guys. Okay, for John, I'm gonna. I'm gonna do this silly thing again that I do which is trying to share my screen. Okay, so this is what my phone looks like. So can you see RP data there? For people who have RP data, you can actually go in and get RP data on your phone as well. So you actually can use your same login data. So this is really cool. So let me just. No idea why I've got some of these suburbs in here. So let me have a look at something that I've pulled up recently. I don't even know why I was looking at this area. So I'm looking at a property here in Cessnock. You can see there the properties come in Cessnock. They've got a whole new amount of information and so they've got all these trends characteristic that comes up and gives you all this information around trends. So if I put Cessnock in here, for instance, all the trends around the median price and sales and everything come up, which is really cool. But if I go back to the property itself and I have a look at this property. If you go down the bottom now what they've actually got in here is all this extra information about nearby schools. So there's all this school information in here. I'm going to shoot a little video on this John, and share it. But all the nearby schools in the area. So this gives you a really great capacity to understand what's happening, you know Cessnoc west primary.

It's a primary government really important if you had that demographic.

Absolutely. And a few, you know, market trend information that's happening about Cessnock as well. Anyhow, always scary when I share my phone but the. But I just want to let you know if you're in RP data, you also have access to your logon to that mobile app which is insane. So I love it. It's always very good and yeah pretty cool.

Yeah, that's great.

Okay. Well I can see the competition is still running across the bottom of the screen John but we've now been chatting for an hour and a half and I think we've had a lot of fun. I think we've answered most of the questions.

I will say one thing about that competition just before we go is if you've already entered the competition, the link that you actually share with people to get 10 extra entries is the link that you originally got when you entered the competition. So don't use the. Don't enter the competition again and use another link because that then can't marry the two together. So we don't know that that's your extra 10 points. So you'll basically have two entries with. So go back and find that original email that was sent to you when you entered the competition first it's a confirmation email and grab the link out of that and then, you know, stick it in a group email and share it that way or however you would like to share it. But that's the link you need to use to register those 10 extra entries for each report.

Please join. As I said, the top 10, the top 5, the top 2, the top 1 on the leaderboard come Friday 8th June 5pm are going to win an insane amount of prizes. We already gave over $4,000 away last night to the top 20. They'll be getting their prizes information about that today. I put in the comments below a copy to that webinar. Interesting to see John, what the top five. Not the top five but five of the top property experts in Australia are thinking about where the growth is going to be in the next five years. Please I encourage you to join the competition. We would love to go and find a property for you the terms and conditions on the page below but you know, share, do not spam and well John, seems your screen seems to have frozen on you. I'm going to put the.

It always does it in the nicest poses too, doesn't it?

You look very lovely. I'm going to leave you there to just give a voiceover. But from John and I, I hope that June is great for you. Please get the questions in. Where can you send the questions to John in case people can't turn up on the day?

Yes, just questions@your property success.com au makes sense, doesn't it?

So for now, welcome to all of our new students. We love having you in the club. Please get engaged, ask questions. If anyone's out there doing some renovations, be the big or small bathroom, kitchen tiling, whatever, we would love to chat to you. We would love to share your experience as Russell is sharing at the moment. And from John, goodbye.

Goodbye.

And from me is to your property success. Till next month. Bye.