Your Property Success Mentor November 30-11-2017

Broadcast is now starting. All attendees are in listen only mode.

Hey guys, welcome. We're about to get underway in a couple of minutes. Just before we do though, I was just wondering if you could type into the chat if I'm coming through loud and clear, please. Who we got there? Carolyn, Kurt, Patricia, any of you guys, if you could just type into the chat there that I'm coming through and you can see our screen. Should have Q and A call. Your property success monthly Q and A call. Oh, there we go. Thanks, Carolyn and Patricia. Awesome. Okay, be back in a few minutes. Thank you. Hey guys, just checking once more that you can hear me. If you just type into the chat that I'm coming through loud and clear there, please. Carolyn or Patricia, if you could just give me another go. We're just double checking that coming through. For some reason it's not showing we're coming through here. Okay, and we're off and running. Sorry about that, guys. If you could just type into the chat if I'm coming through loud and clear now. Sorry about the delay. Just had some gotowebinar problems that come out of nowhere for some reason. Carolyn or Patricia, if you could just type in again that you can hear me now and see the screen, that would be awesome and we'll get underway. There we go, Kurt. Well done, Kurt. Thank you. All good. We'll make a start. But just before we do, just need to do our mandatory disclaimer. It's important for you to understand that you need to take care in applying what you hear on this webinar or any webinar to your own personal circumstances. Everyone's situation is different and all the information in today's call is based on our personal opinions and experience and is not intended to be specific to your circumstances. We're not real estate agents, financial planners, lawyers or accountants and are not liable for any loss, damage or misunderstanding caused by reliance on any of the information provided or inferred. And then we also record these mental calls and reserve the right to share the content down the track. So by participating in this call, you are acknowledging this and if for some reason you prefer not to be included on a recording, just ask that you contact our office on 1-300-963-646. That's 1-300-963646. Within 24 hours and we can edit you out. Obviously, that only applies if you ask a question or you're actually on the recording. And with all that out of the way, I'll hand over to Jane Slack Smith. Hello, Jane. Are you there?

Hey John, how you going? Hello everyone, can you hear me?

Yep, we can hear you.

Wonderful. Well, I'm broadcasting from my home this evening and a couple of reasons for that because we've had a few.

Few.

Changes this this month. I ended up having a bit of foot surgery. So not a big walker at the moment, but I'll tell you a bit about that later.

Ended up with a hole in your foot, right?

I do.

I have a number of holes, my foot. That one in particular wasn't supposed to be there, but anyhow. Well look, welcome to the call everyone. And look, I really appreciate it. As John said to you, this is for our your Property Success Club, our mentor members, our ultimate guide to Renovation course members and the investors choice mortgages clients. So welcome. And this is your call that we have once a month, the last Thursday of the month except for December at 8pm and we try to round up about 9:30. However John, we usually go over. So anyone who has heard our calls in the past, you will know that or has been member of the club and had a look around in there. And welcome to all our new ultimate guide and renovation family. There's about three years worth of calls there. So you have hundreds of hours and.

The rest now we're up to. We started in 2013. Four years now.

Yeah, monthly calls for four years, two hours a month. So there's a lot of question and answers in there. But we are very much committed to assisting you with your answering your questions and being here for you. So as with all things, no question is stupid. So please, even if you've been on these calls for many, many times and haven't quite put your hand up or, or you are new to these calls and you think your question's a little bit stupid, don't think that because everyone has been at a starting place and maybe the question that you are thinking about is the question that everyone else is considering as well. And I know sometimes we talk about in acronyms, John, and we just forget that not everyone knows what some of these things are. So we are here for you. We're here to answer your questions. And I should probably introduce John formally to you. So the person who I usually say is sitting next to me but is now down the way is John. So John, the co creator of the ultimate guide to Renovation, the your Property Success Club, the your Property Success podcast, the workshops, John, it goes on and on. I know we're gonna have to stop, right? So John has an incredible background in trade as a solid pl, has Flipped Properties has done developments and we've been working together since about 2012. And our favorite and first baby Will they say was Ultimate Guide to Renovation. So those of you who are, who are in there and experiencing that, have a look around and any questions that you have, please let us know. But I did skip a screen and if you can't make these calls or if you are listening to these recordings, please jump on the line. 1300-76-1119. We do have a message line. In four years we've had one person call it, I think. John. Is that right, Lorraine?

Yep. Thanks Lorraine.

It was usually on live but if anyone can't make these calls, please email us or leave us a message on the 1 300. We've got an email there too, John. I think that people can email us.

On yes questions at your property, success is the easiest way or you can always use supportourpropertysuccess.com.

And this is just to remind you this isn't a technical call. So if you do have some frustration, some issues, some log on issues or some problems, please you know, go through and you know, contact supportysuccess.com we have an amazing group of people who can assist you. John and I aren't the technical wizards that we pretend we are sometimes. So this is not the call for that. But please get in touch with us and we will work around the clock to make that happen for you. And if you do have a question, I ask that you just raise your hand so you're going to find the little hand symbol or icon up the top left. It's small but you'll find it. Put your hand up and let us know that you have a question. We love people having a microphone so that we can actually get you on the line because it just allows me to understand your question a little bit better and answer your question a bit better as well. So please raise your hand, that lets us know that you have a question. And we do prefer to go through those with microphones so we can have a discussion. If you do have a follow up question, just make it quick or put your hand up again and we'll answer it. Yeah, I guess that's about it. So without anything further to do, John, I know you have had a huge, huge month. Happy birthday. By the way, where did you spend your birthday this month?

In Vietnam? I was on a Hanoi street food tour on my birthday, which was an awesome, awesome present for Eileen. And so we went around all the little stalls and learned what all these Things were. And, you know, because you look at these places and because we're in Vietnam, in Hanoi, and places look kind of scary and one. And, you know, you're not. You don't know, you know, what you're supposed to eat and what you're not supposed to eat. And, you know, some of them look a little bit grubby. But the food guy. The food guy was actually a Melbourne guy, originally lived in Hanoi for 16 years and had a Vietnamese partner. And he said there's no correlation between how dirty the floor is and how good the food is. In fact, it's. Normally, if you've got a dirty floor, it's good food because they only concentrate on the food. So, yeah, so that's what I did on my birthday. But, yeah, it's amazing, actually, to think because we were right for three weeks and so. And all that's happened since the last mentor call. A lot happened.

And. So tell us, you. You and Eileen went on motorbikes to the north, and where cars can't get these people. Haven't seen people on these big bikes before, essentially. So it was really out into the wilds.

Yeah, a lot of it was here. I'll see. Let me just.

All right, please show us a picture.

There you go. I brought Chantelle. So that's Hanoi. So I just wanted to show you this. Jane, you'll notice there's an absence of any giveaway signs or stop signs.

Yep. And it looks like there's a roundabout, but everyone's kind of going in different directions.

Yeah. So this is an amazing thing to kind of watch as the. The cars come at each other and they don't slow, like, but somehow. And defying the laws of physics, no car touches another car, and they just kind of weave through each other. It's amazing to see and totally confusing. So we kind of sat there and we're looking at it and just trying to work out, you know, what makes this thing tick, you know, and what the rules were. But we kind of worked it out. Yeah, we kind of worked in that land. But, yeah, it's just incredible to watch the. The traffic. So there we are. That's us going out of Hanoi, heading for the country, heading west.

And you had a tour guide.

Yeah, so you'll see him in a sec. His name's Tang and spelled T H A N, G. And, yeah, he was great. He's fantastic. He'd been a tour guide up in the mountains for six years, and he just got on a bike a year ago. He's really Good rider. And so, yeah, he's a great guy. But, yeah, that's some of the. In Hanoi, lady. Having a rest after a hard morning's work. But all the stuff comes in, like, at about, you know, four to five in the morning, all of the produce for all the markets comes in on motorbikes. Everything's. It's amazing what they can get on a motorbike. It's crazy. So the whole country's mad with motorbikes, but.

And everything's fresh.

Everything's fresh, yeah. I'll show you a shot of that in a minute. Yeah, so that's. That's kind of the countryside. Getting out into the countryside. You can see I'm checking on the back there. Checking out the ducks. Yeah. Getting up into the mountains there. Amazing. The scenery is just extraordinary. Just everything's everywhere you. Looks of kind of postcode postcard. But the. The problem we found on the. From the second day is once we got up into the really remote areas where the villages were only connected by motorbike tracks, basically you couldn't get a car on these tracks, so it was quite. Quite remote. And everyone's got a scooter anyway. Not a lot of people have cars, so it wasn't such a big deal for them. But so you get these landslides and. Because they had a bunch of rain in the week previous to us being there. And so these villages, you know, they've got to get their stuff to market and everything because what. Most of them. What they've got is farms and they might have. They've nearly all got fish. They've got their fish in their ponds that they have at the front. And then. And then they've got their animals and they might have rice patties or whatever. So the. They'll basically. Or if in the river, they'll fish or like, they'll fish and so they'll take stuff to. They'll feed themselves first and then they'll take what's left over to market via motorbike. And so they have to get in and out each day. So all they do is they basically roll up to these landslides and dig a path through it and just ride straight over with the. With the bike and that's it. It stays like that until like a backhoe or something can get in there and dig it out again.

And that's what you were traveling over?

Yeah, yeah, that was sort of traveling over, which was pretty scary for Eileen because she'd only been. We got her on a bike last at Christmas, so she hadn't been away that. That long. So this was a pretty tough, tough test for her. But, yeah, sounds great. And that. Yeah, they're the kind of roads. I mean, that one's a bit wider, but it's a car road. But there's some little kids there. Have you ever seen the. What's it called?

There's Eileen as Eileen.

Yep. They're Hmong. Those villages are Hmong. And there's a Clint Eastwood film, which is the name of. It's a car. If anyone knows it, type it in. There's. Anyway, that's where I first heard of Hmong people were in that film. So. Yeah, so there's some of the kind of bridges and stuff. You can see there are a couple of planks missing.

Oh, my.

Yep.

This is not my idea of a holiday. Like, I was in shock.

Yeah. Gran Torino. Well done, Carolyn. Yep, that's the one. Gran Torino. That's the film with the Hmong that have migrated to the States. So. Yeah, that's up in there. That's all tea plantations there. The tea is amazing. Like, it's. That's the green tea for breakfast and. Yep. They really eat. The food's amazing. Now, what would you call that, Jane? And I'll tell you what they call it a boat. Yeah. They call it a ferry. Yeah. I think of the Abel Tasman when I think of a ferry. But. So that thing.

Are they actually. Are they actually putting your bikes on that?

Yeah, like this.

Oh, my gosh.

Okay.

The thing we're even walking on, it is just terrifying. You know, it's half submerged underneath the water. So we got on there. This is in. Right in the kind of remote. And it's. It was so hot. It was. Because the. When you get in out of the mountains and into the valleys, it's, you know, probably about 80, 90% humidity in about 35. So it's really, really hot.

Oh, God, I would definitely not be on that ferry.

So. Yeah, that's just a typical little village that we come through there. There Mong as well. And. Yeah, that's the kids toys, the motorbike tires and that. What you can see there in the foreground on the left, that's hemp. They. And all their clothes. The clothes that the girls are wearing, the dresses that the girls are wearing, that's all made out of hemp. So they've been doing that for thousands of years, making that hemp up. Yep. This is some of the rice patties. Yep. So look away. Vegans, vegetarians. Sorry about that. I should have Given you fair warning. But that's. That's basically that all their food's fresh and they've got no refrigeration and basically they'll. They, you know, that farmer's come, killed his animal, put the meat on the table and that's, you know, that's the way they get their food. That's Eileen's first river crossing. So you can see that she's in.

Oh, my gosh.

Yeah, she was.

So you didn't let her go like, you know, half a tire that went the whole way.

Yeah, well, she's right up to the pannier. That's actually. It was a lot. It was deeper than we thought. But I went across first. Didn't. Didn't quite pass on that information, but she was. But this, this was the turning point for her. Once she'd done. This is on about day four and once she'd done this river crossing, she was away after that, so full of confidence. And this is coming towards the end. This is a place called Barbie Lake, which is right up in the north. It's kind of all on the ch. We kind of skirted along the Chinese border for most of the trip. But this is just an amazing location and yet little boat trip with the local boats. It's a cave system that the rivers go through.

Wow. Well, we missed you for three weeks. I can see that. You didn't miss us at all.

Not even a little bit. Yeah. So that's it. Yeah. Amazing country. The first time to Vietnam and. Yeah, it's just fabulous. Loved it.

Well, it's hard coming back to work though, isn't it?

It is, yeah. First week back, we flew back on the Sunday and then back to work on the Monday.

Oh, good. And straight back into it as well. We're off to Sydney this weekend for the workshop.

Yeah, Sydney for the workshop. So that'll be good. So, yeah, we've got something different this time. Yes.

Based in Sydney but doing Melbourne.

Yeah, it's going to be a good one because. Yeah, for a lot of people. They wanted to. To. Well, a lot of people are interested in Melbourne at the moment regarding, you know, particularly Sydney ciders with your 1.1, you know, median price. Melbourne's looking good and still a bit of gross predicted for Melbourne and yeah, it's. It's going to be good. And also if you didn't get an email this afternoon, we've got drinks. Catch up tomorrow night too. Friday night in Coogee Plaza. Crown Plaza, arden Street. Yeah.

6, 637 30. Grab yourself a Drink, come over, say hi and have a look at some dot maps.

Yeah, we'll have some top maps from Melbourne there and Sydney as well. So, yeah, all good. That'd be fun.

Excellent.

What's going on with you?

Coughing attack. I had a big month too. So as I said, I got off the mentor call last month, hit surgery for my foot. That's. Someone said to me I had a birthday last week as well. Someone said, usually people who hit your age, Jane, have surgery on their face rather than their foot. I'm just keeping that till I'm 50. But no. So as you said, they had a little bit of an issue. They over chiseled and went through the back of my ankle. So I ended up having to open up the back of my ankle for an arthroscopic little surgery procedure turned into something a little bit more major. So I'm still hobbling along, but you know, it's all good.

I saw the scars. You've got a little one for where they did the operation and a big one from where the chisel came through.

These things happen. But yeah, had a great time. My son's birthday as well. We had a virtual reality party at a virtual reality place for 10 year olds and it kind of got me thinking. I thought, well, maybe I should have a virtual reality party too. So I hope that you guys caught some of my Facebook lives on the week starting the 20th and had a lot of fun. Fun actually. So the first day we gave away some prizes. On the Wednesday I actually interviewed Ian Agart from Small is the New Big. And I had spoken to Mark Hodge about three weeks before when I was looking at doing Airbnb for one of my properties that was up for rent in the eastern suburbs of Sydney. And I met Ian actually at the same function as Mark and we got to talking as well. And Ian had some really innovative thoughts about short term leasing and how to get ahead lease so you don't have to own the property yourself. And I know the conversations I'm having with investors choice mortgages clients regularly is the fact that they're on a path and on a plan and on a journey. And we had everything worked out of when they're pulling out equity and rolling onto the next interest only period and buying the next property. And a lot of people can't even afford with the apron asset changes their current loans to refinance to a better rate, let alone new lending. So I put my thinking cap on and thought, well, if we've got potentially three, four years of slower growth so not backwards growth but slower growth then how are we going to build up our revenue stream so that when we are back and if they don't change the ways that banks service our loans, can we show we have extra income? So two years of proven additional income somehow or higher income allows you to increase your borrowing capacity. So I'm actively out there looking for ways to people to do that and not necessarily own the property. So that was really interesting. And please get onto the your property success Facebook page, listen to the recordings and have a think about it. I actually convinced Ian to come back yesterday and I did another chat with him. This time he was down in Davenport and he's got a new twist on the old boarding house. So my older theory about boarding houses is where smelly old men lived. Sorry, offending anyone.

And of those smelly old men on the call.

I had inspected a lot of these properties looking for opportunities in Sydney for many years and unfortunately they were pretty much full smiling. But this is, this is a whole new market. You know these are Caesar stone, beautifully fit out, even custom built smaller properties and they're finding this demographic of professionals around 25 to 30 year olds who are lapping them up but also this emerging demographic around 55 year old single women who have moved on from their life somewhat and they're looking for a high end, secure, close to transport, close to you know, cafes and work kind of places to live. So really interesting. And he talked about how you know, obviously you could develop your own development and develop this yourself with JV partners or maybe with his group. But he also teaches people how to do it to their own properties. So maybe a communal living area, maybe communal bathrooms but not necessarily, I think 22 square meters he was saying was kind of the standard room, kind of studio apartment and some innovative, you know, pull down lounge couch, bed things.

And he's got, he helps on the edge with the regulation side I take it. Does he?

It's really interesting because one of the things, he's actually a campaigner and lobbyists across all of the government, state government areas around this type of housing as well. So he's, he was talking yesterday to the treasurer in Tasmania about and he's also the minister for housing down there about, you know, making it easier for people to convert properties into boarding houses. Victoria apparently has the easiest regulations but I know that, yeah I know that when I was talking to him last week he was out at council helping one of this to students gets complying development through. So it's really across all of the different capital city, sorry all the different states and their legislation. But also one of the things that really tickled me was the fact that he had, he was teaching people how to actually take over a head lease. They'd take someone else's property and maybe spend up to $10,000 retrofitting it, taking a three year lease, maybe renting it. $5,000, sorry $500 a week and from a landlord declaring everything, getting everything in place and then renting it out for maybe 850 a week themselves. So they'll make.

And are these residential properties, zone residents?

Residential houses, yeah. And depends on it. I mean you know some of the things that they're doing in Queensland they have to bring them up to the fire safety ratings. But so the landlords are actually, or the owners are actually getting that work done by these people at no cost. So it's a real win win. So I'm going to ask for more information about his courses next week. Watch your emails because I want to send it out. I think he's got some information things in January but it's just, it's something new and I know a lot of people are hitting that servicing wall and looking at ways to potentially increase their income or turn their current property into an opportunity. So I think.

What's his name again? Jane?

What's it for Viv Ian Urgarte. So small is the new big. So we'll get you some details about it. So that was interesting. So I interviewed him but the combination of my virtual reality birthday party and any of those. This is a special that I did for those people just in the club Facebook, club Facebook page is. I brought together 6 of 5 of the property experts across Australia to find out what was happening. So Tyran Hyde came and talked about legislation passed just last week regarding what came up in the budget earlier this year around depreciation and what you can and can't claim. And then Louis Christopher from SQM Research he dropped in and talked about the boom and bust report and even though maybe Weinhobert was on the list, why you wouldn't invest there or some of the concerns and you know, talked about some of the incredible growth opportunities, you know, 7 to 13% in Melbourne and you know, listen to it, it's really interesting. Grab the boom and bust report, it's a good read as well. And then had a chat to Kieran Claire which is lovely to connect with Kieran again. He's ex Australian property investor magazine editor and the real estate journalist for the Brisbane Courier Mail. However he did finish. He does finish up there tomorrow, but he had some. I'm really interested about Brisbane and the economy and what's happening there, because I know a lot of people from Sydney and Melbourne are looking to that. That area, the price point is a lot lower to get into the market, so a lot of information there. Who else do I speak to? Oh, I know Bryce Holdaway. We had a chat about location, score, the product. Then he and Ben and Jeremy have put together and also where they're buying, you know, what's happening in Sydney and Melbourne as well. And then we had this amazing opportunity to talk to one of our community members. So Sarah Crawford has been one of my mortgage clients for many, many years, and she reached out to me a few weeks ago and, you know, we've been supporting her and her family. They've been going through a bit of a tough time with their youngest child having onset at two and a half, epilepsy and little Piper had some issues. Unfortunately, the Royal Children's Hospital didn't have the funding to actually have the resources that were needed for her and other children with her issues to be diagnosed out of Monday to Friday operating hours. And they've created a bit of foundation, the Pipilepsy foundation, which we're fully supporting and donating towards and promoting as one of our community members. Because, you know, our community is all about supporting and celebrating everyone's success and also sharing information and help. And one of the nicest things that she said was, you know, it's full on work, just, you know, being there and caring for Piper. And, you know, now she has the foundation to the goal to get $100,000 for the hospital and their first event got $35,000. And thank you to everyone who's made a donation on their behalf that we're matching and once again getting to the club and Facebook page and get those details. But she said, you know that property you helped us buy in Melbourne in 2013, now she's got two bungalows on the back of his property and they've been getting 700 bucks a week on a property that cost $305,000 back then all this time. So they're making $300 a week. And she said, we've just revalued and. And it's more than doubled and it now gives us the opportunity to sell that and pay off our home loan, not worry about mortgages, not worry about money, stop my job so I can concentrate on this full time. And thank you for helping out. And that is completely personified why we are here and to help you guys get rid of your money worries and get on with living. And these road bumps along the way, when they do come along, it means that you've got that security to fall back on. So that was great. A really, really worthwhile. So yes. So jump in there and have a look at that because I really wanted to make sure you guys had a lot of content around what's happening right now. Oh, and I can't forget Peter Kalizas talked to about what's happening in Adelaide Perth. So Pete, our old mate, property professional Pete, hey, jump straight in. And I said him, I know. And he jumped straight in. I said, hey John, come to my birthday party. He's like, yeah, where am I flying to? I'm like, it's okay, you can dial in. So no, it was great. So guys, get in there and have a look at those, those videos because we really wanted to create some value, the videos with Ian and that other one. So. And then I did. Frank Valencic of the Advantage Group asked me to be on a renovation panel that he had last Thursday night.

He's the guy, the bald headed guy is always on the block.

He was always sweating. Lovely man. So I met Dee from the block who was a lot nicer in real life than I think her Persona on TV is. And so she was really sweet. And Jensa who was a project manager for building, she has a builder's license, so really interesting. And okay, I have to tell you how long we've been in these calls. Four years. We have lots of questions and I've done panels for Hia Home show and you name it, questions. I was asked the weirdest question I have ever been asked in my entire life.

Oh yeah? What's that?

Okay, so this is a property forum on renovation and this little man at the front, this lovely little older Indian gentleman putting his hand, first of all he said, I think you should change your name from Jane Slacksmith to Jane Smartsmith. So I knew that he was a bit of a comedian. He said he's been watching the property market for many, many years and he believes that back in the good old days that people didn't go to the toilet that much and hence it was okay to have a three or four bedroom house with one bathroom but with takeaway food. These days people are going to the toilet a whole lot more and needing to spend more time in there. And hence what is my opinion on now needing due to people's dietary intakes, the need for an extra bathroom yeah, interesting question that is questions I get, I can, I usually can answer but that one didn't work for me.

No, you didn't just ring it.

No, I thanked him for his question and said I would look into this whole new change preservatives that I was not aware of. So yeah, had a good time and then I did a podcast recording on Monday that will be out this Monday with performance property data. So had a chat to Sharon on Property Pineapple podcast and and you talked about my property investing experience. So that was exciting and, and I attended an incredible. I know this is the final thing I'm going to tell you. Had a big month, an incredible auction on Saturday and this property has been a high end short term leasing property, so catering to the gay and lesbian community here in Melbourne and beautiful, beautifully designed, gorgeous property. I've always wanted to have a peeking, you know how you want to be one of those nosy people that oh, I just want to have a look. Well it was auction day so I had an opportunity. My husband Todd went down a few days earlier and went you just have.

To see this property.

Anyhow, so I put a few pictures on Facebook. But incredible home now quoting reserve of 4.4. I thought it possibly hit5.2 and hit 5.46. And yeah, incredible bedrooms, beautiful bathrooms, exquisite property. So yes, high end, short term stay. So yeah, had a bit of fun doing the auction rounds as well. Yeah, big month.

Sounds like it.

Let's talk about other people now.

Yeah, put your hand up. Let's see. No hands up yet. So stick your hand up. You can be the first in if you've got a question.

I'll keep talking I tell you about my exciting mum. But yeah, look, we really encourage you guys to put your hand up and if you have a microphone please turn it on. Now I did have a question last month and I promised that I would get some more information on and oh gosh, I can't quite remember who asked me this question now. Asked about what was happening in Scone in the mining, you know what was going to have a turnaround.

Oh yeah.

And the, the major economy. Is there anyone there who remembers or is. Was on the call?

Yeah, type, type in if Scone. If you.

South Wales Scone, Upper Hunter Valley. So anyhow I promised to find out. So I rang people I knew in the, in the mining industry and I ended up funnily enough speaking to this gentleman Bruce who I worked with at Yule and Coal Mine back in like 1993. And after I left there in 97. I hadn't spoken to him since from Singleton and he contacted me saying, hey, I saw you got your foot operation, you're probably in bed. And went up for a chat. Yes. So had a nice chat to Bruce and I said, what is happening in the stone coal mines and essentially, and we know in those single industry towns, you know what's going on is really important. And basically said that the council is pretty much saying no and closing down and making it very difficult for all the mines up there. And it's. There's not going to be a. Well, this is his opinion and he's on the ground up there every day, but he's saying it's. The guys are finding it a bit difficult to get jobs, but there's no new expansions or mines being approved and they're being very difficult for council. So a little bit different, I think, to maybe what you're seeing in the Lower Hunter Valley. But yeah, that Upper Hunter Valley with the horses and beautiful Hunter river and all those things. The council is definitely making the increase of the economy through the new mining projects and. And bringing in people who are going to possibly need those properties and drive up the prices a little bit harder. So, as I promised, I get the information. I didn't know and that's what I found out so far.

Very good. Still no hands up. Lorraine's tight what areas are hard to get a loan in. Caroline, would you like to put your hand up and if you can, we'll take the question just so it can understand it a bit better. In the meantime, Lorraine typed in Musselbrook. Is that near Scone?

Yes, that's up that top end as well. Yes.

Okay. She's put in new mine opening. There's Caroline. All right, let's unmute Caroline's line.

Yeah, I think that Jane mentioned during her birthday sessions that there was certain there might have been one bank that was not or it was difficult to get a mortgage in. Do you remember the link? Perhaps that might be helpful for some people to put on to put up.

I have to be honest, Caroline, it's probably all banks at the moment. I just put down the 35 that I deal with daily. Let me tell you what's happened since I did speak on those things. I've had most of the lenders hit our offices begging us to write loans for them and trying to update us on what's going on. So CBA hit my office on Monday and, you know, there's a lot of things happening in the background to the mortgage Industry and home loan industry at the moment. CBA is obviously trying to recover a bit of their relationships with all of the issues that they've had with allegations about what they have and haven't been doing in different areas of the business. The CBA at the beginning of the year refused to take refinances from other lenders of investment properties. You know and we saw lenders like AMP were in my office on Thursday and they had, they had gone to a 50% loan to value ratio and as of, as of Monday they've gone back up to 80% and they're now taking refinances again. So this is a real movable face. Things are changing all the time. The reason that my business development manager turned up from CBA was to tell me that on Saturday everything was going to change again and they were introducing some policy changes and a new postcode change. So CBA and the reason that I mentioned this is CBA has traditionally been the lender that has had no postcode restrictions. So Port Hedland, when everyone else said no or Murrumbah, you know those mining towns, CBA was still lending to, you know, Ralston populations less than 5,000 people, you know, so they, they were really always open to this. So this is quite significant for them. Unofficially though, they did have some areas including areas like Mildura in Victoria that they were hesitant in lending to. This new postcode tool that comes out on Monday next week unfortunately only available to mortgage brokers. But speak to your lovely mortgage broker or send me an email, we'll find out if you're on there. But they've updated their system now to be restrictive on certain postcodes. Mildura is not on the list anymore but there are areas where they have higher exposure. So they might actually have a lot of mortgages in one area in particular units or there might be a concern over supply. So we're talking about the unit market again. So with most where there's houses there's not that such a big difficult difference. They do differentiate between houses and units per suburb. So you know that's interesting to see but you know most of the lenders have had to curtail to the APRA and ASIC restrictions and reducing the amount of investment lending and bringing their interest only loans under 30%. They have all successfully bought those interest only loans under 30%. We know what they've done. They've put up the interest rates for interest only loans and they've put up. Yeah, exactly. And they put up the loans for investors or the interest Rates for investors. But here's the interesting thing and I think there's some real, I mean as I said I'm always trying to find opportunities for our community out there and you know, in some instances I think there is opportunity. The banks still need to make a profit and they have reduced a significant amount of their investor lending and book is what they call the total amount of loans they have in the investment space. Now they actively want new clients so they're actively trying to get home loans. So people who are getting loans for their home so they're actively giving you know, very good pricing. And I know, you know we can, you know there's quoted prices for interest rates and as a, you know, diamond or platinum broker with most of the lenders, you know we can request and get higher discounts. So they're actually quite active on discount on interest rates. And if you have any kind of inclination that you might want to move loans lender, ring up your current lender and just say hey, I don't know any banks offering 3.8%, what can you do? You never know, they might just reduce your rate for you anyhow. But there's some really very, very good interest rates that they're trying to encourage home lending to homeowners. And we've got in Sydney and well in New South Wales and in Victoria the governments have also introduced some incredible stamp duty savings for people. So I know there's a lot of young, 28, 35 year old professionals have gone, I can never own a home and I might have to buy an investment property and I might be buying in Brisbane to do that. Now all of a sudden I think I'm having these active conversations with them which is well, you know, if you, if you can afford to have a property and maybe in one of those great commuter areas like Geelong, why not live there for 12 months commute, buy a property that's affordable, save 30,000 on your sad duty. So you put that towards your deposit and set yourself up in an area that has some growth potential, economy potential, income growth potential. It's commuter city to one of the big major cities and I think there's some real opportunities for first home buyers who never thought they could get into the market, who now can. So out of all of this stuff Carolyn, there is opportunity. But most of the lenders are still quite stringent on the assessments for investors and they're offering great rates for homeowners to get them in. But one of the things that is going to happen in 2018 is that APRA has indicated that HEM or the Living expenses is something that they want to address and they're starting to have conversations with us as mortgage brokers that go along the lines of, you know, it's not possible for you just to put down the, you know, $300 per kid and $1,500 per adult for the living expenses for the month. We want you to have an accurate budget and we are going to be looking at the statements to see if the budget's realistic. And you know, people going out to the RSL club once a week and pulling money out, you know, we want to, we want you to have a conversation kind of either have a, got a gambling problem or they just like local roast. So we're going to see, I don't think we're going to see lenders restrictions and they're getting rid of negative gearing. Most of the lenders have now come back and said if you have a rental yield over 6% we're not going to take the additional rent. So they're making things more difficult for us to lend. We're not expecting interest rate rises according to the experts until end of 2018, 19. But I think now is the most that you can borrow will be the opportunity for you to borrow the most you can borrow because they're going to make it harder. So for those of you who think you might have some borrowing capacity left in you and or even want to do a renovation or a top up or you know, have be reassessed against your current rate with another lender, now would be the time to act. So take the time off over Christmas and get all your paperwork together because I think early next year you'll probably see something get even tougher.

Yeah, I mean I did actually contact my mortgage provider and told them I was actually going to be switching. So they reduced it slightly and then a few months later they end up putting it back up to where it was before.

You hadn't done anything, you would have been up even higher. But I think there's, you know, the conversation that I have with people around interest only versus principal and interest. It's always made sense to me to pay off your owner occupied debt first with principal and interest loans. Unless you plan to move which is, you know, have it as an interest only loan but fill up your offset account. So you know, at the end of 10 years you have a $400,000 mortgage with $400,000 in the offset. You could pay it off but you've got the cash there as a buffer to help you out if things go wrong, you don't have to go and ask the bank for the money. So for me, interest only loans with offset accounts, even against your home, have always felt to me like the low risk solution. And unfortunately APRA does not feel that way and they really feel it's high risk. So they're almost forcing people into. We have to now explain if we do ride a loan as an interesting loan, why we have done that. So we have to please explain now. It's an exception, it's considered. But if you think the first home buyer, they're using every single cent that they have to buy a property to get a good raise, they're almost. Or even a higher loan to value ratio, they're forced to do a principal and interest loan, they're paying a higher monthly mortgage repayment. Now they've exhausted all their buffer and they've got less of an opportunity to build that up quickly. I don't think it's right, but that's the way it's being pushed. But now there's some incredible differentials between interest only and principal and interest loan repayments or interest rates. So it is now a real conversation that we're having which is, you know, it's going to save you $5,000 a year by making principal and interest repayments, you know, so I think it's time to switch that thinking.

Yeah. I mean, I can't wait to see what happens with the Royal Commission into banking. It should be quite a blast, actually. Going to be.

I know, and I think, you know, there's also, you know, how mortgage brokers are compensated. There's so many things going through at the moment and, you know, how bankers are compensated and the bosses, I mean, as you said, I think there's some real changes coming about and I don't think it's such a bad thing. I think people should be accountable for the professionalism and the services they provide. But, you know, not everyone is gullible and being taken advantage of and not everyone else is out there to get you. There's a lot of good people out there that possibly could be, you know, leave the industry because of this. So hopefully, are we interested to see what happens? We'll have to watch that together.

Exactly.

Thanks for your question, Carol.

Thanks.

Yeah, thanks, Charlotte. Oh, good. All right, well, I think we're going to wrap up, Jane, because there's no hands up and fabulous, there's no questions in chat.

Oh, gosh, this is going to make me make something up. Hey.

Oh, no, hang on, hang on the hand has gone up. Lorraine to the rescue. Hello, Lorraine.

Hello.

Hello.

Hello.

What have you been up to?

I couldn't let you go this early. Well, we've been very fortunate. We found or we've exchanged on a property, actually. Well, my daughter has. With partners with my daughter again. Yes.

Tell us about the strategy.

Okay. It'll be another by Renault cell.

Yep. Great. Central coast again.

No Newcastle area.

Okay. Okay.

Wanji. Wanji.

Okay. Are you swearing it?

No, no, no question. No, no, no, no, no, no. Wangi Wanji is a place. It's really beautiful. It's surrounded by the lakes on both sides of the area. And it's 10 minutes from Morissette, which is like the train station, 15 minutes from the freeway. A lot of people love retiring up that way. And, you know, houses sell quite well for a good price. I was lucky enough to talk to this agent probably a week or 10 days beforehand about another property and, you know, we missed out on that one. And then she's. She sort of rang about a week later and said, I've got something coming up and the owners want to test it before they go to the market, you know, and they had a price of 489 on it. And so there was only one other person that was competition or that's what the agent said. And anyway, we sort of put a really low offer in, got knocked back, and then we offered 480 and that was accepted. And yeah, we were. We were really excited because the market up here is as hot as ever and with no competition, you know, we feel very blessed because we. We know we've bought it at a good price.

Yep.

And yeah, we're just going to. They're hoping to settle before Christmas and we'll just spend the next six or eight weeks after that just renovating it. And I've already sort of been in contact with the tradies and stuff like.

That, and we've already.

Amazing. That's amazing. Yeah.

And so what. What's the plans for the renovation?

Our renovation will be painting the outside, new gutter on two sides of the property, painting inside a new bathroom, new kitchen, replacing. It's like. What's it called, the old paneling on the deck, you know, the crisscross stuff. You know, I forgot what it's called, but yeah, that trellis. Yeah, like a trellis.

Yeah.

Taking all that down and putting proper screening up. We're going to paint all the fences, spray all the paint offenses. This pretty up the garden. Yeah. Really just probably spent about 30 to 35 on it, like with holding costs and then hopefully we'll put it back on the market and get in here between 580 to 600 and we picked it up for 477. 500.

Nice work. And I mean for people who, Lorraine and her daughter are very good at this. And please look at some of the posts in your property success Facebook page because you're very generous in showcasing what you're doing and taking us through the process as well. But you know, having that pricing disparity there is often difficult to find renovated properties around that 580 mark when you're buying at 470. So you know, being able to target those suburbs and do the diligence that you've done is sensational because I know that you do your numbers very well.

Absolutely. But Jane, I haven't given up like we have. I have been searching virtually every day or every couple of days since we sold the other property in February this year. So it has taken us, you know, nine months to do it and find it. But we've got one, you know, that didn't go to market and you know, it's got great potential and you know, obviously we'll share the story as we go along but yeah, it's. Who knows what we'll get but you know, we're very proud and very happy.

That's awesome. It's tough, isn't it Lorraine? That deal flow I found when I was flipping properties is the hardest part. Being able to get on to the next one. Yeah. Finding the next one.

Yeah, absolutely.

I think what you're talking about there, getting that relationship with the agent and having the agent come to you even in that, I mean I know it's a really hot market there that that's almost doing what buyer's agents say that they do in having those your off market sales. So you know, you really shortcut the system and only have potentially one other who knows that agents telling the truth, but one other person up against you.

I just, we are truly blessed and you know, we were just lucky enough. You know, the lending's been easy for the my daughter and you know we've.

Got the cash to be able to do the deal and it's.

And secretly if I pull it off, I've also got another deal straight after this which is really exciting but I can't share it because it's just, it might not go ahead.

I love about what you're doing is that you're doing the numbers up front and you're using the techniques and the pricing disparity and making sure that it works, the deal works beforehand. You're actively getting in there and doing the research and you're finding these suburbs and these areas and not giving up. So, you know, daily searches for nine months. But if one suburb or area doesn't stack up or the price moves, you don't cling on for D live and waste, you know, three, four months there. You move on to the next area and keep your analysis live. And I think that's important. But also this relationship with the agents that you're building up as well, you know, you know, it's one of the things that, you know, the sheets that we give you in the ultimate guide to Renovation around, you know, how to fill in the agent, what you're after, making them part of the finding process for you because it helps them to be able to go to a potential seller and say, hey, I've actually got someone on my books who's looking exactly for this. This could be a done deal by Christmas. I know, I know.

And so I've already said to her, you know, you can have the house for the resale, which then hopefully gives her, you know, the opportunity to go, oh yeah, these are great to work with and maybe she'll come again with something else. But it's a delightful place. It really is a delightful area as well.

Tell us about the area, Lorraine. Is it a large suburb or did. How did you go finding comparable sales, for instance, at the renovated.

Okay, okay. So I did that through realestate.com and just I looked at all the sold prices that have happened in the last three to six months. You know, like recent to six months. I physically went and drove around and.

Had a look at those houses.

Yeah.

Looked at the pictures inside, you know, so you can sort of. And you always know that the pictures look better than sometimes than what they actually really do.

Yeah.

And you know, I just like it's just a nice, like there was blocks there and houses there that was selling for 607,000 or 620,000 that had like steep hill, like a steep backyard and you know, all timber inside, like very old fashioned. And you know, she said to me, like, it's just an up and coming area and because of the beautiful water and like it's an open lake, like it's very clean, lots of boats. Like you know, once I get some pictures, like I'll put them up just to check it out. As I said, it is a really nice place. And as I said, just down the road, train station Freeway, you know, probably half an hour from Newcastle.

When you.

Look daily as well. Yeah, exactly. Well, don't. And don't sell yourself short. You know, we got lucky, you know, because you've done the work for this.

Well, very excited and you know, it's funny, it's the same time as last year actually. And you know, the one we bought then was still, you know, that was off market for a reason and, you know, to have it in our hands again like this. As I said, it's just a gem and it's a beautiful open plan living, you know, it should appeal to a lot of people. I'm also going to maybe put a doorway so we can get to the laundry because at the moment you just go just around the corner of the back deck. So, you know, but the deck is the full area of the whole back of the house. So it's. And it's really big and it's got open French doors that open out onto it. So the potential. And we're going to stage it. We'll do the staging as well.

So did you stage last time? Yes, yes.

You've already got the contacts, like I've already been in contact with the builder, the plumber, the electrician, everybody finding out what holidays they've got the kitchen guy who said, no, we can't make it and then who a couple of days went, yeah, yeah, I think I can.

Do the job for you.

And he's an old guy who has, you know, and doesn't charge a fortune for a really nice kitchen. So, you know, I'm really lucky to be working with really good trades as.

Well, building up that reliable team. That's awesome.

Absolutely, absolutely.

One of the things John's talked about also, and I think it's probably module 10 in the ultimate Guide to Renovation. John, whereas you've had people after you finished your renovation to come back in and quote on the job that's finished and basically say, my next property, I'm going to have a kitchen just like this again. Can you quote this? Because they can actually see what you want as the finished product, which I think is just amazing.

It's good to do, particularly if you're not quite sure if one, one, if you're. You're using a tradesman in a particular area and you, you think you should just have a look at what the competition's like and particularly checking out prices, particularly things like stone, like benchtop stone and all of that kind of thing. Even electrical equipment I've done this with. But having the finished job so there's that period there, particularly after it's sold, that it's doing nothing. It's sitting there. So I would actually bring trades in and say, okay, on the next property, if you were to do the exact same thing as this, because I just. I cookie cutter everything. It's always the same, virtually. How much would it cost? Or could you go with a different stone? Or could you. So it's a good opportunity to do it when you're not under pressure to kind of have stuff, you know, done in the next three weeks or next. Whatever time period it is. And. And I found some got built. It's a really good way of accelerating that because what you're doing is absolutely perfect. As you go along, you refine it, you get a better team of guys and it just gets so much easier. And then, you know, most people would move on to more of an hourly rate set up once you've got guys that you trust. So then you're making some really big savings because they're not adding margins into the quotations now. You've got to be a little bit careful with it, obviously. But, yeah, that's. That's the benefit of building up that team. The only thing I would add to that is at a certain point, I think it's human nature for people to come a little bit complacent, like maybe after two, three, four jobs. So I would always still get a second quote, even though. And I wouldn't tell my plumber Phil that I'm going to do it, but I'd get one in just to make sure that nothing's kind of. We're not drifting upwards as time goes on.

Yeah, yeah, fair enough.

That's a good idea.

But at the moment, they're good and they're. And they're keen and they've already given me some prices and they're very, you know, very quite good prices. I'm happy to do works over holidays as well.

So it's really good.

Yeah, that's good. Trades over the holidays.

Well done. Well, yeah, you've got your Christmas holidays all planned, haven't you?

We have a bit, but it's. It's, you know what, it's just. I don't know when you've got the opportunity to do it with your daughter as well. And, you know, without her, we wouldn't be able to do it and without us, she wouldn't be able to do it. So it's benefiting both of us and.

You know, and it's changing her life.

As much as it's changing out. So it's a win, win for everybody.

Yeah, it's great. It's interesting. I had a conversation with a client today. He was going, how can people afford to buy by themselves anymore? I was like, well, in actual fact, people are collaborating with what they're doing and what you're doing. They do family members, friends, you know, or on, on a design platform to do it, you know. But yeah, it's, it's incredible. You know, out of all of these changes, I think there's been some real opportunity and innovation that's come about which is good for the future.

Well, that's all. Otherwise you stop and you can't move forward. You know, you have to come up with ways of still being able to do the deal and, you know, changing your life.

Absolutely. No, it's great. Oh, thank you for sharing. We're going to be watching you.

Well, we have the camera shortly.

It's not so far.

Sounds like a nice place. I might not want to come back.

I know we sat down at the local pub last weekend and we're like, I said, Greg, I said we could, I could live here. And he went, no, I couldn't. Yeah, because you know, he wants to go to Queensland. But I'm like, this is really nice. It's just like the old bar and bay type of things. You know, just relax atmosphere and.

Yeah, I don't know.

Very nice.

But it's north of Newcastle, right?

No, no, no, no, no, no, no, no. So central, coastal. I'm in between Newcastle and the central coast. So if you go up the freeway from Sydney, get off at Morissette, the Morissette turn off and then drive straight through Morissette Township. And 10 minutes on, it's there.

Okay.

It's up there. You know, like it's. You just don't think of it like, but like the prices of houses, like the million dollar houses on the waterfront.

Wow.

And then a few streets back, a.

Few streets back, you know, pick this up for 477.

Amazing.

Out the front, you look straight down to the water.

Nice. Nice.

Awesome.

You're already working on the sales pitch for when you're selling it.

Oh, I am, I am.

Don't you worry. Water view. Love it. There is, there is. And a pearl.

I've even got a saltwater Pearl.

Really?

Really?

177,000.

You're talking yourself into moving, but I can see this changing. John, I had a meeting with the buyer's agent today and I was talking about these off market sales and I Was saying, you know, I know that there's a large amount of off market sales that do happen. Tell me more about it. And she actually said they're actually really, from a buyer's agent's point of view, they're really tough because people go to an agent, a real estate agent, they go, I'm kind of interested in selling, but I'm not really interested in the campaign. And people coming through my house every Saturday kind of have a price in mind, but they're not quite. Often they're not quite committed to sell. And hence when you come back with your offer of 4 70.

Okay, you.

Are kind of interested. Oh no, it's kind of 500 now is my price. And they actually start putting their price in their mind up because they haven't had to do a lot of work. Exactly, exactly. And the agents, they're going, oh, I think you're kind of wasting my time. And so this buyer's agent was saying, you know, in actual fact, there's actually a lot of work involved in some of those off market deals just because the person's not completely committed to the sale process or haven't put their money forward to it. So that was interesting because I know buyer's agents often talk about the fact that a large percentage of the properties that they see that us regular people don't are off market. And it was interesting just to hear that there was a little bit more difficulty around it, but getting to know the agent, letting them know what you're after. And Gabrielle, who we did that video series on, John. Yes, he talked about doing that and getting to know the agent as well. And it can really be a real benefit to you in your search.

So great bonus.

I would ring agents every week.

Hello, it's me again. Have you got any deals? No. You've missed out.

No. And you know, I just kept on and I almost felt like I was counting them, you know, but like I just tried and tried and tried and then, you know, as I said, just persistence wins and you just don't give up. So it does happen.

I did it.

We know the market will change, the market changes at some stage and there'll be those agents ringing you every week.

Yeah, exactly. But thank you very much.

G'. Day. See ya.

Ya.

Bye.

Now we've got sue waiting patiently here. She's not sure if her microphone works, but let's give her a try.

Hey, Sue.

Hello, Sue. Can you hear us?

I can hear you. Can you hear me?

We can. How are you? We haven't spoken to you in ages?

No, no, I've been enjoying going through the course. I'm going right through the basics and applying all the basics, so that is good for me. I just had some questions about the goal setting. Let me see. I've already worked out the max that.

I can borrow.

But I've been holding off because I want a new principal place of residence and I'd like to have the cash aside first before I purchase because if I buy an investment property that will restrict the amount that I perform on new principal place of residence.

I wish to.

To purchase first and then sell afterwards. Because in this market in Brisbane, you can't get anything if you join subject to sale. So just give me your thoughts on that.

So you're going to have to use a bridging loan, is it?

I've got a really large line of credit.

You've got the capacity to purchase the property before you sell without having to have a bridging loan. Correct.

But what it's doing is it's stopping me from getting into the market because to buy another property, I'm frustrated because I'm not going to buy another property. We've got some lovely growth happening around here because I'm holding off until I find something as ppor, which is always an emotional buy, I suppose. So it's restricting getting into another growth property.

Yeah. Look, I think what you're doing, although frustrating and seemingly keeping you out of the market, is possibly in the long term the right thing to do. And the reason I say that is securing your home first is what you're trying to do. And the reality is, with the lenders at the moment, your borrowing capacity will be hit when you have had made a subsequent purchase. And I'm assuming the purchase could be of a higher amount. So you know, you're possibly going to find. And as I said, a lot of people find that with their current. So let's just say your home's worth 500,000 and you've got a 400,000 mortgage. Now, you may find that if you were going for a loan again today for the same property, you could only get a $320,000 loan. So you've already come back in your borrowing capacity for where you currently are now. So going into buying your home and securing that first and foremost, as you said, the market's going up. It's difficult to have anything that's, you know, with any terms or conditions in it because the market's moving so quickly. It may continue to move that quickly or it may slow down. A bit, I don't believe. You know, I haven't read any reports from any of the experts that have said the business market's going backwards. And Kiran confirmed that on Friday. So it's really. Your borrowing capacity now is probably the highest it's ever going to be. Interest rates potentially could go up and the banks are going to get tougher in the future. So securing the home that you want to have now, first and foremost and then looking at the investment property I think is a clever strategy because the, the worst thing that could happen is that you do get a little bit frustrated and you know, you do turn around and you say, okay, I'm going to go buy a property. You go and purchase a property in. Okay, Lorraine, I'm going to embarrass myself. I'm going to say wongy Wongi. I would say north of Morissette. And you purchase that property and you turn around and you go, okay, now let me get my home set up. And you find that you can't and you're stuck in the property you have at the moment. So I think that in particular, securing your home first is a really clever way and you're just going to have to think as an investor, it might be a home, it might be emotional, but use all of the learnings that you're going through right now to look at how you would purchase that property. So you're learning about suburb due diligence and you know, you might be curtailed to three or five suburbs that are on the right side of town for your work or schooling or whatever. Run those suburbs against each other and then look, use the module 3. We talk about getting in to look at the sweet spots within suburbs. So then go and have a look. Where are the owner occupiers and where are the areas that are going to go up in value that are going to outperform the rest of that suburb. So you can actually still use all of these techniques to buy your home and actually create your, you know, use your home as an investment in your future.

Yes.

Yeah, that's good input. I know where I want to buy so I can run that criteria against that area and I can be doing homework on the next investment property after I do buy a new principal place.

Absolutely. It's interesting too, suburb selector software. You know, around the middle of every month the data gets updated by Secure Emeritus Research. So, you know, if you use that one particular suburb that you're tracking, just create an Excel spreadsheet or a screenshot or whatever it is of Just watching the movements over the months as well, because, you know, it'll be interesting to see. And the surrounding suburbs. It'll be interesting to see what's happening. So that's step three, where you actually see the suburb and the surrounding suburbs data. Start capturing some of that. And step four, for the suburb that you're looking at and just seeing how it changes over the. The months that you're doing the research on it.

Okay, I'll try and do that. I'm not up with computers very much, but I will. Yeah, having the modules spread out the way they are is helpful for me.

Yeah, well, you can go back to them anytime as well. So, you know, knock them over for the investment for your home and then you can go back and do them again for your investment property and the next one.

And I can do that against my current properties as well and just check what they're doing.

Absolutely, absolutely. And just make sure that the properties you currently have are not being poor performers in your portfolio and holding you back. Because you might just find that you bought them based on maybe a gut feel, maybe emotion, maybe on a bit of analysis, but now you've got this whole wealth of extra knowledge and analysis. Just make sure that the property still deserve to be in your portfolio and are getting you to those goals that you want to achieve. Okay.

I think that two of them are and one of them isn't. Is this the time to discuss that.

The one that isn't? I think so, because potentially speak to your mortgage broker or your lender and just find out what you your current borrowing capacity is. Because it may be it might get you your home and your investment property, but you may actually look at the investment property that you think at the moment is a poor performer, and you might be able to use portability without being reassessed to move that loan to another property that is a performer. Or you might give up that property and bring your borrowing capacity up straight. The higher amount that you need to be able to achieve both the home where you want it to be and the investment property where you want it to be without, you know, shortcutting those requirements.

Sue, are you familiar with portability?

No, no, I'm just writing notes on that. I'm very excited about that. I met with our broker today, but he didn't mention that.

What bank is that property that potentially is the pauper for with Suncorp? Okay, so ask your broker what the portability reassessment is or portability function that your portability feature is with Suncorp, because There's the basic Suncorp and then there's the professional packages, etc. And so different lenders and different products or different lenders have different portability requirements. So let's just say you did have that $500,000 property with a $400,000 loan. Some lenders allow you to substitute this security. So you could substitute the $500,000 property with a $400,000 loan because you can actually essentially do a substitution of 100% rather than 80% or substitute so 400,000 in cash. So you could use cash as a security against that loan so the loan's not closed down, you're still paying repayments on it. Or you could use portability as a back to back settlement, which is you sell your property, $500,000 property and buy a $500,000 property on the same day, settle them both and the $400,000 loan just moves across. And in some instances, and some lenders, you don't need to be reassessed. So this reassessment of against today's servicing capacities with lenders and Suncorp is very conservative. So you know, you could borrow more with other lenders than you could with Suncorp. So you might just, you might find that, you know, they may not have the function that you want or if you've got that large line of credit that's under drawn at the moment, you potentially could use the cash that you have to secure the property. So you know, $400,000, let's just say $500,000 in cash. But usually the loan to value ratio, cash as an asset, 100%. So you've got the $400,000 cash and $400,000 loan, you securing that until you find the next property that you can substitute your cash or the property that then comes in and you may not need reassessment. So different lenders, different requirements. But just go and ask your broker tomorrow, what's the portability on that product and that property? Obviously if it's fixed, you'll have to break your contract to change the terms, which is you're changing the asset type. So one address for another address or one property for another property. And if you did that, you know, pretty much all bets are usually off. But, but you might be able to use that as a technique to actually substitute a performer into your portfolio and a non performer out. That's extremely good.

I do have two lines against it, like 50 is fixed and 50% is variable. It's a fairly big line. Probably not, but yeah, I'll definitely Explore that. That would be great because you're right, I won't be able to borrow to the same amount again because of all the changes out there.

Yeah.

And just trying to work within those changes and the thing is it might just be. Well let's just say you're trying to buy a million dollar home and that meant that you could only buy a $350,000 investment property. So you're going to end up in a potentially regional area or a unit in a block of units with many other units that may not have the growth. Or you could be in an area that's not considered to be a Bluetooth investment grade. Or you could potentially sell this non performer and still have your million dollar home but get to a $500,000 property that's actually going to have one property that has the growth characteristics in an A grade area that has the investment and all the growth drivers that we talk about as opposed to one 350 and one, you know, $450,000 property that are both going to be suboptimal. Yes.

My goal would be to buy the A grade one but there's quite a lot of equity in it. So that's the plan.

Okay, cool.

Fantastic.

Thank you.

And sue, welcome aboard to the Ultimate Guide. I don't know if you remember Jane. Sue was actually a beta tester with the original your Property Success Club and just recently has come over to the Ultimate Guide and the latest intake. So how are you finding it, Sue?

I'm really enjoying it. It's hard time wise to do the course and just have to turn off the TV and close myself in my office at night. But really enjoying it. The more I've done, the more kind of excited I am about it. So for me the challenges are I'm not really that up with computers and the research side but because it's stepped out so well I think even I'll be able to do it.

That's good.

Yes, great.

Thank you.

Oh great, great.

Well make sure you post any questions you have within, you know, between these calls into that Facebook group, your Property Success club. So there's a lot of, there's a huge community in there that pretty much 247 I reckon. John, there's questions being answered in there.

Yep, absolutely. Great. Oh thanks Sue. Now Deanne's got a hand up here. I'll just unmute Deanne's line. Wait a sec.

Deanne, I think is this Deanne Francis? I was just thinking about her.

There you go. Your ears were burning.

Hello.

How are You.

Hello. Hello. How are you two?

Good.

I am good.

I was just thinking about you. You posted about the fact that you're just starting your renovation on your home.

I know. Exciting. Exciting.

Well, it's funny because I think you were the winner of one of the competitions, right?

It was indeed. Winner, winner, chicken dinner.

Yeah, the iPad comp.

Yes, yes, I remember the picture and remember now, the reason I loved your post in the your property success club Facebook page was I think it was your son that actually had hacked together a computer that you were able to come up with the selection and whatever that won you the competition to get you in the course. And now he's here helping you with the renovation. I know, right?

And I'm sorry, I have to have a mother boast moment. He graduated as a software developer at 18 this week.

Wow.

Fabulous. Maybe he can help sue out.

Maybe he can help us.

I know. And again, we do need. Hey, congratulations. And now you're getting on with. I mean, you're based in Perth, right?

Yeah.

Tell us about your journey. What are you up to?

So I'm trying to do this on a really limited budget. Really limited. And so far it's costing. It's gonna.

I think I. Oh, gosh.

I don't want to go back and have a look, but I know I have to. I think the budget's gonna be around about 24, 25. And I'm getting a full kitchen, Jarrah floorboards, half the house rendered, new gutters.

That's it.

And a stone bench top.

Yep.

Okay.

And tell me this, you said half the house rendered. Is this the street facade and not worrying about the back. Exactly. Right. Perfect.

You know what?

That's a lot of work for 24 grand.

I know, right? I know I can make it go. But you know what? I'll put my budget in there later and I'll eat my words.

Later on.

I'm gonna go back and revisit. And I'm just finding lots of little things are coming up. You know, like the renderer wants me to supply the sand.

Okay, well, sand. You'll be happy to know that sand's cheap. So couple hundred bucks there.

Just little things like that. But a couple of things I'm coming up against that I'm not 100% sure of. I thought the new colourbond, if I just get the gutters a certain color, which was grey, and then I get the downpipes, the color of the wall, I'll just go and get. Because surely they'd have a choice of the Colors that I like, they should have a Diane range. Right. And go from there that, you know, the downpipes that match the color of the wall. However, I went to have a look at the classic cream and I gotta say, I didn't pull it. Nub.

No, I don't like it at all.

So what do you guys think about. I know I'm probably getting more extra work for ourselves, which we're already doing quite a bit ourselves. Well, my son is. Both my sons are. But what do you think about getting stainless steel and painting it the color?

I don't know.

Is that 4 watt for the downpipes?

Yeah, yeah, that's the wall.

Okay. I'd like to be absolutely upfront and honest. I don't think it really matters too much. It doesn't really add too much value. So I'd be careful just in the way you're using your time was where I go straight to. So sorry if that sounds blunt, but.

I just think right next to the front door and it will be.

Oh, it's right next to the front door. Okay. Right. Yeah. In some cases like that I would move down. Down pipe. But yeah, maybe there is something that you. You need to do there. So is it. Is the issue you can't get paint that will go over metal or aluminium or what's. Why can't you get the right color?

No, it's just me being precious designer, that's all. Okay. Yeah. So it's just me saying, look, I really wanted to get a bone color for the. The color of the walls outside. And they don't have one matching in the colour bond. Should I just get a. I see. Get the galvanized just painted.

Could you do the woodland grey from the gutters down the drain? Is it just aesthetically you don't like it or what's the down point?

Is it PVC or is it square colour bond or what is it?

The whole thing's new. So the whole house, eight down pipes and all the guttering. 2,200.

Okay. And what color is it? What color bond? Color is.

Will be whatever I choose.

Like. Okay, so like a woodland gray or one of the. One of their range?

Yeah, either the woodland gray or the basalt. Basalt, yep.

And all right. And are you thinking of. Is it all the down pipes that you think you're doing the wall color or just the one at the front door?

Not all the downpipes because they'll all be the same. Might as well get all the same. Right.

Is there any chance that they could relocate the one near the front door, if they're doing it all, they're rerunning the gutters and doing the downpipes.

The one near the front door isn't there yet. We have a huge problem in this house with flooding. So we have waterfalls coming through the front door and the back door. And the most of the walls are window. So we can't put the down part.

Where I'd like places. Yeah, okay.

Windows are 3 meters at the front. So the only place I can put them is near the front door. The front door goes in anyway. You know, when it's. The entrance is actually it's inbuilt sort of.

Got it. So it's not flush out with the wall.

Yeah, it's on the. It's on the outer bit that I would put it. But I'm just thinking, wouldn't it make more sense to do the color if you, if you're doing new downpipes, wouldn't it make more sense to do them the same color as the wall?

You know what this is. I'm going to be harsh again if this is, if this is not a multi million dollar house and it's not going to be a buyer's objection and it's just an aesthetic what you feel comfortable with. I think you might just be over complicating it and as John said, spending too much time and energy on something that you could be putting into something else. And if it, if it, if it is just, you know, one downpipe and you're gonna have a bit of a paint, you know, and do it, get that out of the way if that's really important to you and just make the others, you know, a standard color that might just be a little bit different to your cream that you've got on your walls or you make them the woodland gray. But I think, you know, unless this is, you know, really high end absolute, it's going to make or break the, the first impression completely. It might just. You could probably put your time and effort into zhujing up something else.

Needed that. Yep. Needed that.

Your time, like your budget. I always think of it like you've got a budget of money and you've got a budget of time and sometimes inevitably the budget of money tends to run over and the way you have to compensate that is by putting in extra time. So which often means, you know, scrubbing things and painting things and all the stuff where you just think I'm going to have to pull back somehow on the money. So that means I'm going To have to do extra labor. So it's good to keep a bit of that budget time in the kiddie.

Yeah. And so I wanted to ask you another quick question because a lot of. Some of it I can do, some of it can't. Like I'm doing all the drawers for the kitchen to keep the cost down and they're going to install it for me. I went from having a country kitchen to the sleek gloss kitchen because IKEA has reduced their prices on the sleek gloss by 4,000.

Yep.

Nice.

That was a no brainer. But the floor. Have you guys used a floor grinder before? Because I want to take off. They painted it probably 30 years ago on the cement and the old glue from the carpet. I need to take it off before we put the Jarrah floorboards down. Is that going to be a difficult job or is it something you would outsource?

It's a messy, dusty, horrible job. What I outsource. I mean I always go to the. What's the simplest and fastest solution? So I would be getting some opinions on that because if I was looking at that, it wasn't a big area and I was putting floor down over the top. Now this will change where it meets other rooms and all that's needed to be taken into consideration. But if there's any chance I can go over the top of it with battens and boards without having to pull it up, I'll do that. Because you can use packers underneath battens and. But that might affect floor height. So that would be. That's firstly where my head goes. Grinders. I don't know if you'd do that yourself. You probably could. I personally wouldn't. Just because it's. Yeah, it's an awful. Yeah, it's an awful job. It's worse than if you ever sanded floors. Most people who sand floors never do it a second time. Well, grinding's. Grinding's about double that.

Well, Alex will be sanding the floor as well once it goes down.

Oh yeah. Well, that's, that's the, that's the time budget. Yep. So you need that. But yeah. So if there was another way, I'd do it. But if that's all the. That's the only option you got because it is concrete throughout. And what's, what's the other surfaces like on the hall and entrance and other rooms that adjoin it? They're all just concrete. Finished. Finished concrete or carpet over the top or.

So we've ripped up most of the flooring now we've only Got the carpet in the bedrooms to go.

Yep.

And then concrete. But it's. They've used old fashioned glue.

Yeah. So it's stuck like nothing. Yeah. Yep. Yeah.

And we're just. Because it's country area. Well, it's semi like it's in the hills.

So you know, people.

It gets muddy and dirty in that. We're going to put the floorboards throughout rather than carpets.

Okay. And that's what's the norm now when you look at those comparable sales at resale level, is that all floorboards?

Is it either.

It's both, yeah. Okay. Well, potentially, if you can get away with it, if it's not a buyer objection and if it's, you know, if there's precedent and other comparable sales, you might think about using more carpet than floorboards. If it's going to cut down your work and your cost.

Yeah, yeah, I do think of that.

I just think most people do like carpet in the bedroom. Unless you're in Queensland where you know, that kind of, that cooler finish is kind of the norm. And if it, as John said, if it's kind of like, like for like of what you're looking at the renovated properties of what they're already delivering, it might be a way that you can cut down your budget.

Yeah, that's true. I mean, I think that it's coming out $70 a square meter for the flooring blade.

Yep.

But on top of that, I have to pay for the oil and the sanding of the Hive sander, which is only $60 a day. Yeah. So I don't know, maybe that's. Let's overestimate $80 a square meter for proper Jarrah flooring. Not, not the engineered.

Yeah.

And then and carpet, they said I could get some. I've got a contact. I've used him before for my last Renault and he said he could give me off cuts wool, pure wool for 50 a square meter.

Right.

Like. So there's not a lot of difference.

Would you have to. With the carpet, you could go straight over though. Could you? You just put another coat of glue and straight out. Yeah.

The rest of the house.

What's that?

Sounds like some sad time. You don't have to grind it.

Yeah. Good. Yeah. Yep. The other thing is I still have.

To get the grinder.

Oh, for the carpet as well.

I know. But for the rest of the house.

Oh, yeah.

The main areas.

Yeah, I'm with you. Yep. Cool. The only other comment I'd have there is the. Again, same thing. I'd be looking at the Comparables and having a look what their flaws are. Because I know, you know, jar is a beautiful floor. It can be. It can be XY too. So if, if, if Jarrah's the norm, then that's what you kind of. I always think that I'm stuck with whatever the norm is or what the market wants. But there are ways of getting the Jarrel look cheaper by using a hardwood and staining. So that might be worth considering. I wouldn't go to a softwood if. Softwood. Well, the problem with soft woods and so on, if they're already down, like if you've got a Baltic pine or something like that already down, then fine, you just deal with what you've got. But you. I wouldn't put it down deliberately just because it wears so poorly.

You see, the thing is, John, over here, I looked at the vinyl because I had the vinyl planks in my last place, so. Fantastic. And they're 75 square meter to buy. Not even to lay.

Not with.

Lay deeper than the other flooring.

Yeah. Okay. So what's your sanding, though? How much are you paying for your sanding?

The sanding? I think it's $60 for the day.

Higher.

And probably feed my child that night.

And then are you going to stain it yourself or do the polyurethane yourself? Yep.

Oil.

Okay.

Yeah. Which will look good with the oiled floor against the gloss white in kitchen.

Yeah, it looks, Looks great.

Yeah. So, yeah, I don't think the sanding will be huge. Yeah.

Have you done. Have you oil before?

No.

No. Okay. Have a. It's, it's, it's. It can be. Yeah, it's a harder, it's harder job to get the consistency of the. Because you can get dark patches and so on, but maybe just have a, have a go at a smaller section first or on a sample, you know, grab a few boards and have a. Get the hang of it.

A guy was saying that I should get, you know, feature grade and standard grade. So the standard grade is 35 a square meter, whereas the feature grade 8 a square meter. And he said buy some featured grade for areas where you're going to have rugs and beds, etc. And then put the standard grade in your hallways and entrances and where you're going to see it. What do you think of that?

It'd be the other way around, wouldn't it? So you'd have the lower grade in under your rugs.

And he calls the feature grade the lower ones. And then standard.

He calls the names going on. Yeah. As long as is this end match timber. So it's got the groove down the side and also on the ends.

Sorry, I couldn't.

Is it, you know, if it's in match. End matched. End matched. So the ends of the boards have the same. Yeah, yeah. I guess if the sizes are identical. Yeah. I'd be keen to do. I'm still thinking, I mean, I don't know the timber prices in wa, but I'm still thinking, is there a cheaper way I can do it and still not get the same perceived value but not spend the money? Because that's all. That's, that's all the games about, really. How do you make it look expensive without spending, you know?

Oh, absolutely. I couldn't believe how expensive the flooring is over here. And as I said, vinyl is dearer than this pure wood because I'm going to a guy that rips it out of houses. So he's the warehouse guy.

Direct.

Okay.

But I just can't believe how expensive.

What about other hardwoods? Is there like. I don't know what's another hardwood? Like a.

Like a. Yeah. Or Tassie gum. Yeah, they were 128A square meter to buy.

Oh, okay.

Yeah, yeah.

Astronomical.

So Jarrah's cheaper than the other hardwoods.

Yeah, absolutely.

Wow. Okay.

I wanted to go lighter because I got a real estate agent in and he said go light flooring because that's a preferred at the moment. But I said to him, it's just too expensive. So it's the Jarrah or the carpet.

And he said, oh, go wood every time.

Okay.

There's the salesman of the wood.

No, no, no. This was a real estate agent.

Oh, okay.

Yeah. Not that gullible.

And what are you seeing in the comparables? Are they a mix of both? Are they?

Most of them have got in the new renovations. They're mainly wood because people up here have animals inside and it does get quite dirty outside because we're on half acre acres and they have kids and they just bring the dirt in.

Yeah.

Yeah. I mean the market that I'd be selling to would be school aged children probably.

Yeah.

Saying that the new ones that have moved in in the area are all like three, four year olds.

Yep, yep. Lorraine just posted a thing there. You can buy timber online and they get someone else to install. Yeah. I think from memory our installers were about 25 bucks a meter last time I did it. That's not including any supply square meter for floorboards, but. Yeah, you've got that.

Yeah, I was just Going to say, I think you potentially. The fact that we know that the renovated properties are a mix of both, and there's, you know, everyone's kind of happy either way. If you could potentially, if it's going to be cost effective for you and time effective for you to do the carpet in the bedrooms and just the beautiful floorboards in the, you know, obvious areas, even with small children, messy small children, you know, carpet, I don't think is an objection. Like, I think, you know, it's. It's okay. Especially, I mean, having grown up on a farm, I know how messy and dirty things can get, especially if you've got the waterfall features in the front door and the back door. But, you know, I think, you know, as a parent yourself, you know, you keeping your kids with their shoes on, the muddy areas in the muddy areas and the floorboards are going to be a really good selling point for that. But I don't. If it's such an extra cost and the time cost of getting, you know, that the glue off and everything, it sounds to me like the carpeting in the bedrooms could be an option and you can spend your time somewhere else better maybe learning how to do the oiling, which is. I haven't done oiling. It's sounding a little bit complex to me. But learning to do that well in the areas that are going to be visible.

Yeah.

I mean, I am worried because my boys will ruin the carpet, and they're 15 and 18, and if we stay here for a couple of months or, you know, six months afterwards, then I'm worried all that work's gonna be for nothing.

Oh, dear. Yeah.

But I will look at that, Jane. I know. You're right.

You're right.

So I agree. And thank you, everyone, for their answers on the induction versus gas.

I'd like the answers. You know, should you go induction and gas if it's the same kind of cost? And I was sitting there going, oh, you know, what would I be doing? The whole idea of this is a stupid thing. I know you're about to buy a house worth hundreds of thousands of dollars, and you go, like, dang it, I have to go and get new pots to go on the special induction thing. I'd be going. That, for me, would be what would be going in the back of my head. I have to go spend 200 bucks on new pots, even though I'm spending, like, $500,000 on a house.

Yeah, I don't have to. Mine is stainless steel, so I don't have to get new pots. So it's all good. It's mainly copper pots that can't go on it and anything that a magnet can stick to it can go on. Yeah. So. And then everyone was saying, yeah. At work they were saying, oh, but gas cooktops, they're so hard to clean. You'll never get it clean, even though we love using them. And I'm like, everyone's overthinking this again.

Exactly.

Yeah.

If I had the choice between electricity and gas, I'd always go gas. I haven't experienced the induction, but, you know, apparently they're quick to heat and my only kind of mental thing would be, do I have to get new pots for that?

Yeah, yeah, that's right. Yeah. Well, it's not that I go on a gas line. I'd actually be getting gas bottles.

Okay.

Oh, okay.

They would sit outside.

Yep.

Yeah, they'd sit outside the house.

That's another issue.

Oh, and in that money, I'm also getting a huge area of concrete which patio runs towards the house. And I'm getting that ripped up Saturday morning. Yeah. So I'm sure he's a granddaddy of mafia, but that's okay, we'll leave it alone. He's already charging me $600. I don't know where he's going to dump it all two trucks worth.

So, yeah, as long as that quote includes taking it away, you're good. If you were going to have. Tell me the. The other properties in the market that you're seeing is gas bottles. I mean, I know you're out in the, you know, up in the hills, but is gas bottles something that's called common?

Oh, absolutely. You can't. There's no gas up here.

Yeah.

But you know, if the like. Is gas cooking the preferred cooking, I.

Looked it up and it's probably 50. 50 again.

With really? With electric, you mean?

Yeah, 50 with electric and 50 with gas.

Yeah.

Induction is pretty. Still pretty new. Right? So.

Yeah, yeah.

And the prices have come down quite a bit. If you go through ikea, the induction is pretty good.

Yeah.

Which is just Electrolux or Westinghouse Air, they said so, you know, they're good brands. A five year warranty.

If that was the case. I mean, I'm not. I don't know that area. But once again, I'd come back to what could be the objection and you know, back to my $200 pots if it's. I have to change out the gas thing every now and then and remember to do it. And it's taking and it's Unseemly. And it's taken up some space somewhere on my. My back porch somewhere, I think. Oh, induction is kind of cool.

Yeah, that's. That's my thinking as well. Exactly what you said. The pot situation. And then. Oh, where am I going to put these gas? Gas bottles. Two big gas bottles.

So, yeah, a hard one.

Yeah. The agents might be able to help you with that. I mean, the idea is just. You certainly don't. You don't want to create a buyer. Objection. But you do. Yeah. Most. Most times, though, putting something different in or some, you know, shiny object. New. New thing is. Doesn't. In my experience, is not always the best decision. I think a lot of people, like I. I know Jane, where we stay regularly around the Dalsford area, they're all on gas bottles, and that's just the accepted way of doing it. And most people prefer to cook on gas that you speak to. So, yeah, it's whatever's the norm, really. It's what you have to be guided by.

Yeah, I'm getting that back. Most people do prefer gas. People who have tried induction and then they go to induction. But most people, for now prefer gas.

Yeah.

And considering we have so many blackouts, it might also be a positive to.

Point and the man comes and collects your gas bottle and puts it, you.

Know, does the thing.

Refill. Yeah. Swaps it up.

Yep, yep, yep, yep. It's not a problem.

Yeah.

Yeah. It's so exciting. I'll keep you guys posted as to.

What I do that. Absolutely. Well, lots of decisions, but yeah, don't over complicate the whole guttering system and. And flooring system. You know, go what's needed and. And save you some time and money and. Is not a buyer's ejection. And it's typical for the area.

Just enough. Just enough.

Yeah. And I think what I'm finding is a whole lot of it's gone smoothly, but it's just little things like getting someone in. My son knocked a wall, a door back through that was, you know, covered up and. But getting someone in just to mud it or, you know, or knock down the pantry and harder than, you know, it's so hard. You think it was bigger than Ben Hur and they want to charge you all the exorbitant prices, but everything else runs really smoothly, you know, so it's. It's interesting how the tiniest little thing can just put a hiccup in it.

Absolutely.

Yep.

That's the nature of it.

Yeah. I do enjoy it, though.

It's Very much fun.

Oh, good.

We'll keep us posted with what you're doing.

Okay, thanks, guys. Have a good weekend.

See you again.

Bye. Okay, Jane, that's it. No more written questions, no more hands up. And we're only 10 minutes over.

Can I steal the screen quickly just to have a little quick discussion?

Sure, I'll just bring it over.

So just, just as a quick, you know, we, we've talked about, you know, research and numbers and, and John and I have been in arm's depth in helping some of our done for you new clients out recently and getting in the data and finding the suburbs where they should be buying, etc. And so I'm always looking for, you know, the 30 filters that we use to help people, you know, that you're learning the ultimate guide of renovation and some of the your property success club course material. You know, we're always looking at what other criteria could be applied and what are some of the indicators of success of, of suburbs that we could be considering. And Bernard Salt, our good mate from kpmg, you probably heard him on our podcast. He came out with an article today, and I've got to say, John, he disappointed me. Disappointed me. He declared that he's got the 20 hottest spots in Australia based on only one criteria. So not applying 2, 3, 4, 5, 6, 10 criteria, but just one criteria.

Was it temperature?

No, no. Can you see my screen?

Okay.

Okay. This hot whist criteria is the population in prime home buying age groups who are also employees. So this is looking at people who are between 25 and 50, which is considered to be the prime home buying age group. Obviously those are starting out and those upgrading, et cetera. And you know, arguably at 50, you may not buy an extra home after that, who knows? But the prime home buying age group, so we know that 70% of the properties in Australia are homes rather than investment. So this is the category of people who are buying those type of properties and they're employed. And what he's done is they've done a study between the 2011 and the recent 2016 census, and they've come up with the 20 hotspots. Now, Lorraine, you'll be happy to see Morissette down there in number 20 that you just mentioned. But the thing that disappoints me about this, and you know, you might just see I've had my time for me to breathe once an hour, I have to take two minutes to breathe.

We'll come back to you.

Yeah, but the thing that disappoints me about this, and I know Bernard doesn't usually do this, is that there's more than one criteria that you would look at when you're assessing suburbs. And you know, John, we've been using, as I said, we've been doing the done for you service for people. At the moment, we're looking at 15,644 suburbs, and we're putting our criteria and we're coming up with less than 120 in Australia that we would consider that to invest in. And so it's interesting to look at these numbers and, you know, just in case you can see this here, I might even try to get a drawing tool to show you. But what they're doing here is they're looking at the total population in 2016, and they're looking at. Of the total population. So the number one area here is Melton. They're saying there's 60,000 people in Melton, but there's 15,000 of those that are between 25 and 50 and who have a job. So of those 15,000, there has been an increase in the population of 25%, but it's an increase of 26% between the two censuses. But the increase has been 21% of that 25 to 50 age group who are employed. So this is actually, you know, assessing the entire population or the entire potential of an area just based on the growth of this age group between the two census time frames in five years time. And what's difficult in this and Melton is an outer suburb of Melbourne.

There's a lot of house and way out, right.

A lot of house and land packages. You know, it may have that population growth in this prime age group doesn't necessarily mean that they're buying out there either. They might just be employed within that age group group. But I think it just highlights one of the things that you should be wary of, which is one piece of numbers or one experts report or one person's opinion around what the top 20 hotspots are. You know, it may not be enough. And that's why we really teach and have that rigor around, you know, understanding the demographics, understanding, you know, characteristics like yield and percentage renters and all the things that we go into at the pot. But I mean, look at this, Joni. We've got here, like, you know, Melbourne, Perth, Sydney, you know, and Brisbane are in the top five, you know, growth potentials, areas based on this, which, you know, obviously they've got higher populations and, you know, we look over here, there's some significant Median prices, you know, the Sydney at 1.1 million, etc. But it just goes to show you that one piece of information is not enough. This is where I would potentially get my suburbs from. Our, you know what we're doing on Saturday at the workshop, we're going to do the dot map and get the ripple effect suburbs. We're going to get Terry Riders hot spotting report, we're going to get the boom and bust SQM report, we're going to get Residex predictions report, we're going to get RP Data's predictions report, we're going to get Ripehouse's predictions report, we're going to get the location score report. We're going to throw all these things together and this might be just one more piece of data.

You could throw all those suburbs in there too.

Suburbs in and then you come down to the suburbs selector software, put them all in, get rid of the ones that don't fit the 30 criteria, come up with the three to five and you know, run them against each other. But I just wanted to show, you know, someone who's reading the Australian today will go, wow, here's the 20 places I should invest because there's one criteria. So go buy melan. So I'm just saying. Or decorate a Darwin, you know, so I'm just saying be aware of the information you've got. You guys have got access to the, you know, the rigor and the process and the information to do better analysis. So when you're reading these articles in the future, have a little giggle to yourself and go, that's interesting. That could be some suburbs I put on my list. But it's not the only reason that I would look at buying in that suburb.

Johnny Edwards used to say that to us all the time, that the, the report that he liked the least was the predictions report. And the reason was that people just picked the top predicted suburbs and that's where the research start and ends. And he preferred the, was it the indices? No, it was the resi spreads that he preferred because it forced people to go and look at the actual individual data and collate it together and make the decisions themselves. But they're all just one data source.

Absolutely. So yeah, that was my little high horse. I just wanted to share with you today, but I saw this come up, I went, ah, gosh, I hope there's another whole group of people rushing out there and buying Darwin, you know, based on the fact that it's number two on the list, for instance. Yeah, there you go. Well that's it for me. That's it from you, John.

Sure is.

And I guess the. The thing is that, you know, these calls are here for you guys. We had that 1300 number that we can never remember, and obviously you can't either because no one leaves us a message. But please send your questions through to us if you can't make the call. We are bringing the call forward a little bit in view of Christmas and the silly season for next month. So you'll get a reminder a week out and a couple of days out and an hour out that we'll be on the call. If you can't make the call, please send us a question. I encourage you to go back and listen to some of the past questions. If you're new to the Ultimate Guide to Innovation or to the club, welcome. Jump in, get involved in the group. If you have any questions. You know the fact that we're here to support you and help you either on these calls or in the Facebook group, please take advantage of that because there's incredible community and we really want you to get the most out of this experience because I think I've put six people's stars up on my star wall this month whilst you've been away, John. There's been a good one in the club that are just doing, yeah, doing some amazing things, and we just want to, you know, shine the spotlight on you guys and celebrate some of the successes that you're having. And there's some people who are just, you know, really doing some great jobs.

Now, Jane, we have to interrupt programming because we've never finished a call with a question unanswered and someone just put their hand up.

Oh, no. Oh, gosh.

She was halfway out the door, folks.

I was about to take my sign off.

Deidre. I'll unmute your line. Let's have a go. Hello, you there? Oh, might be a false alarm.

You might have to type it in.

I think I can hear you, Didri. If not, just type in your question. You'll have to be super fast. I can't tell whether you're still there or not, so I'll mute you again. Might be a false alarm. Sorry. I can hear you. Okay, you can hear us. Type in your question there, Deidre. You finish off where you were going, Jane, and then we'll come back to you for the sign off.

Okay, So I don't even know where I was going. I think it was like, oh, just jump in the Facebook page, have a look at some of the questions, post your projects. Or what you're trying to do or even your goals. You know, we're here to keep you accountable to your goals as well. And, you know, as I said, go and check out the interviews that I did from Friday on that Facebook Live back then. And you know, Renault Save gave us a great deal. I just want to let you know that those of you who were in our March intake for the Ultimate Guide to Renovation, you have a card that's going to be upgraded. Encourage other people to go and have a look at the card. It's usually $2.99. And Viv came up with a $99.95 special for us. It's in the page. It's a great deal, especially because it's just become an ambassador card. And I don't even know if I'm allowed to tell you this yet, but part of that is a Bunnings discount. So she's been negotiating that very, very hard for at least 18 months.

Yeah.

And that's imminently getting over. Well, actually, I think I got an email on Thursday last week. It's just over the line. So there's some great discounts there as well. And they have a guarantee if you don't get your discount back for the cost of the cards, then you know, she'll refund you. But I used it and saved, you know, over thousand dollars on my white goods for my renovation of kitchen. You know, go in and check it out. There's a really good, really good deal. And also location score. We had a discount code for that as well. Club 20 will get you 10% off that. So there you go.

Okay. Didric's questions come in. I don't quite understand it, but you might. Jane, she says rookie question on the goal tracker module one, how do you calculate the figures for 2.6 million and 969,000?

Okay, so obviously this is a demonstration. So the goal tracker from memory. I did a kind an example that's included in there as a template.

Yeah.

So what I'm going to do if you come over to my screen once again, let's just hope this page loads up.

John.

Yep.

Come over to my screen. If you head over to my Investors Choice website and go to the portfolio calculator and you what will show you here is the screen where I calculate this information. So it's really hard to actually do this you yourself. So I don't think. Oh, here we go. So what we have here is the portfolio calculator. So you can actually put this information in yourself. So you can say, just type in.

Is this the calculator you thought you mean? Yes, this is the one. Just to make sure we're on the right track. She did put in. Yes, that is. Yes, good. Oh, we're on the right track.

So let's just say that you're trying to get to a $50,000. I think this is the example I used, John. $50,000 passive income over 15 years. And you can change any of these yourself. And it comes back and it says you need three properties. So you need $1.4 million in the bank after you sell these properties, pay capital gains tax, pay the sellers, the real estate agent, and pay your loan off. You need $1.4 million in the bank that results in a portfolio of having $2.6 million in 15 years time based on the 7% growth that I had up the top. So you can change that to 5% or 10%. And that $2.6 million of growth in 15 years based on 7% means that you need a $949,000 portfolio. Now, I think I remember those numbers well. So a $50,000 passive income in 15 years means that you need a $949,000 portfolio now or two $450,000 properties. We've got three here because it's just a little bit over 900,000. But two properties of $450,000 will get you that 959. And that will mean that if you have growth of 5 of 7% in the next 15 years, year on year, some years could be 15%, some years could be 5%, then you will have a portfolio of $2.6 million. When you sell the portfolio down, you put the money in the bank, pay your capital gains tax, pay your real estate agent, pay your loans off, that $1.4 million in the bank at 5% will actually earn you $50,000 before tax. And that's how that calculation works out. I know how hard it is to work it out and do backwards calculation, so I came up a calculator myself. So head over to investorschoice.com portfolio calculator or just go to investorschoice.com and go to calculators here, the little blue button and you can work it out based on whatever you want to do. And if you, as I said, if you think your capital growth will be 5% and you know, expect the inflation is going to be lower and you're returns going to be a little bit lower, put all those numbers in and calculate what's specific to you.

Perfect. Thank you very much. That explains it. Much appreciated.

No problem.

No question. Unanswered.

John, the record remains.

Fabulous. Well, I guess that now is the end. And once again we hit 10 o', clock, even though we say we're impinged by 9:30. But thank you very much everyone for hanging out there. Hope you've had a lot of benefit from the questions. We've talked about loans, we've talked about renovations and specifics. We've talked about areas of growth and things to watch out for. And celebrated a new purchase with Lorraine too, and deanne's new renovation. So track them in the private Facebook group your Property Success Club. And as always, here is to your property Success.

See ya.