Your Property Success Mentor September 05-10-2017

Six months. There is movement and suburbs that do qualify for us to check out and have a look at. But this time, you know, Brisbane. Wow. I've got the suburb that we went into some detail on to, you know, not only did it have the ripple effect, it appeared on three experts reports. You know, they had all the indicators that went through, you know, my 30 filters. But when we got down to looking at, you know, the difference between three and four bedroom properties, there was such a close. Although the three bedroom properties were the ones that were the typical property which we always talk about, the four bedroom properties, geez, you know, they were only just behind, you know, so I think there's like something like 80 sales of 1 and 70 sales of the other or something. But the thing that really astounded us was there was over $200,000 differential if you could move from a three bedroom to a four bedroom. So it just, it really gave us that pricing disparity as well. You know, quick renovation, maybe converting a dining or formal lounge room into that extra bedroom for, you know, less than five grand could really move you into potentially that next price bracket. So that was really exciting, wasn't it?

It also appeared on three, three reports. So we always mark them, we consider the dot map. We're just calling them a report but the dot map I think it was on also sqm, Jane and maybe the.

Terry Rider hotspot, Terry Ryder.

Yeah, so it was great. I think that's the only time we've had all three come up. You know, it's always good if you can get two. But yeah, really, really good. And a good trip out and bus trip out to inspect the property too. That was really good. Good group of people as always. And then followed up the next week with Melbourne which was also really good.

Absolutely. It was really interesting actually with the Brisbane hotspotting workshop that we had a lot of people coming up from Sydney and Newcastle etc. So there is that attention away due to affordability to that northern state. And I guess the other thing is you look at the median house price in Brisbane is the same as the median unit price in Melbourne. And the median unit price in Melbourne is the same as the median unit price in Sydney. So that shows you that differential. It's incredible as we've seen that market move. So yeah, interesting. And yeah, backed up with Melbourne, another amazing group of people. So it was just great to, you know, we get together with people the night before and a bit of a meetup. So you know, people drop in. So it's so nice to catch up and actually see people face to face, which I think the Renault Fest really reinforced to us, didn't it?

Yeah, it is. It's fantastic. And it's. It's amazing sometimes you've been speaking to people for years, literally years, and just never met them in person. So it's always, always fascinating, really. But, yeah, great.

What else have you been up to?

Just the work, mate. Well, I'll show you. I've been away on my. My motorbike on a little camping trip and I'll indulge and just show you a couple of shots in a second. But the other thing that I've been working hard on and I needed a holiday from, was the. The. The Done for you suburb service that we just started. We've had our first group of people through that and that's been a lot of work, but just a fantastic process and really interesting. Just having to. It's forced us to, you know, systemize everything and put it into a way where we could put the criteria in one end and spit the suburbs out the other end. And, I mean, we do that in the workshop. We normally use the. The metro medians and things like that, and the metro yields as our criteria, but in this case, we've been doing it for personal specific criteria to the person who's coming through and then doing all of the research with our fabulous researcher. And out the other end spits the suburb. So it's been great.

Well, just to summarise to people who may not have heard about the Done for you service, because we kind of only just launched it at the Reno Fest, really, and it really. I don't know if I was in a position, I'd say if you. If you're in the ultimate guide of renovation, you know how much work it is to do yourself, you know, the dot map and maybe buy the reports and go through the suburbs like a software account for the suburbs and do the analysis and then get down to the sweet spots in the suburb and then start the research. And, you know, the reason we started the workshops was because people like, look, seriously, can we do this in one day? Fair enough. So we did that in one day and we taught people the process of how to do that. We do a dot map together. It. We go through that process. And just for those of you listening who have been on our workshops before, you don't have to go to another one to actually get the results. So if you're interested in the results from Brisbane or from Melbourne, contact the office and Speak to Diana and she'll let you know the process there. And then we had people saying, you know what, can you just do it for us? Like, we want to buy the property, we want to negotiate, we want to go through that, but we just don't know where to look like we want. Where are these suburbs that are not maybe generalised in the workshop, which are for everyone's criteria and price point, but for my borrowing capacity in the capital city. So we introduced the done for you service. We started median price of $600,000. You have to have a pre approval. We're ready to go straight away. We have a strategy call with John and I and we work out exactly what you're after and then the researcher, myself and John go to work and we just completely nut out exactly the suburbs that are going to fit your profile.

And our new researcher, Amabel, who is an absolute gun with a spreadsheet, we.

Found out, yeah, yeah, I love people who are good with spreadsheets. And. Yeah, and so we've got, we come up with the suppositors for you. We go into the sweet spots, we set up the territories in RP data, so you get notified of properties come up and you can then go and act on it. So it's kind of almost between go through, do your research yourself and employing a buyer's agent at 10, 12, $13,000. So to. But the thing with buyer's agents is you really need to know the area so you can then contact the right buyer's agent in that area.

Yeah, that's the important thing, is that you can't abdicate that part. I mean, people I know, someone who said to a buyer's agent, just find me an investment property. And they did.

Right.

What was your criteria? And it was literally just their borrowing capacity that was, that was their criteria. But yeah, I mean, it's been a natural progression, hasn't it? When you, you think the, the Suburb Selector software and all of the location masterclass, which is in the ultimate Guide modules two and three, came from that, the original spreadsheet where we said, or, you know, it was your criteria, go out and find this criteria and apply it to these suburbs. And we'd say, go to the back of the magazines kind of thing. And then that turned into the Suburb Selector software, which we were originally literally employing people to manually enter that data in. And then it eventually went to, you know, our arrangement with SQM research, we were getting that automatically populated by the API and then the, the workshops and now this kind of done for you, tailored service. So it's been a natural progression, but it's, it's really good and it's really exciting to the first results that come through this week and last week, which has been, yeah, fantastic, really good.

And if you are interested in that, contact the office once again, supportourpropertiesuccess.com and someone can give you the details because invariably someone will ask.

Yeah, that's right.

Yeah. You know what's so exciting is that I think we're a bit of a pushover, John, because every time someone says, oh, it's too hard to fill in the spreadsheet, can you do it for us? And we're like, oh, okay. And it's like, oh, the spreadsheet, even though you filled it in, can you do a criteria? And we go, oh, we come up with the software, like, oh, the course is so long. Can you do a one day, okay. And now it's like, can you do it for me? God knows what we're going to be doing next. Finding the actual coffee, who knows? But it won't be a house and land package, guys.

It's tough, isn't it? And lots of people have just completely subscribed to the methodology, but they just haven't got a chance to do it for whatever reason, you know, so it's. Yeah, we can understand it's hard, but people have been asking you this for years. I know, Jane. And definitely it's a question we've heard repeated over and over again since we started doing the ultimate guide together in 2013. 2000. Yeah, 2013.

You know what, I don't blame people because when I speak to people, like I speak to Peter Kulios or Peter Warden or John Edwards or, you know, Louis Christopher, you always want to say to people who have their data at their fingertips, where would you buy? And the reality is they say exactly what I say, which is, well, it all comes down to what you need in your personal criteria. Although it's frustrating, you really need to know what's going to get you to your goals and the timeframe you want. And once you know that, that power allows you then to define where to buy. So, I don't know, it's really exciting, the fact that we've made it a quick process and getting people to that area. I'm really proud of it. So, yeah, it's been exciting. We can't wait to see the first purchases come through kit up onto that successful.

It has. It's been really good. And on the back of all of That I took a little trip. So I'm going to just indulge myself here for a moment. Jane. Let's just see here. Hang on.

Where'd you go, John?

Well, I'll tell you. There you go. That's me going bush, going native.

Did you go down the highway with that wood on the back?

Yeah, well no, this is out in the middle of the bush. So I'm collecting wood there for the fireplace. This. So I went down the otways for a couple of days. Left on. Left on Saturday morning and came back on Tuesday night. And this is kind of camping out in the bush with the motorbike and having fires and can you see that there? Yep.

Yeah. Yeah.

Well actually the first night I was absolutely freezing because my sleeping bag was not. Well, yeah, I'm kind of singing the praises of Spam now.

No, no, no, no. There's nothing that's going to justify this.

Monty Python gave it a bad rap. Yeah, the first night my sleeping bag was completely inadequate I found out. So I rode back into Geelong, put my sleeping bag in the bin, bought another sleeping bag and rode back out again and. But yeah, so the second night I was cozy warm. But yeah, it was great. It was great. All of this, all of these trees are filled with koalas and there's kangaroos about. Bird life's amazing. It was just fantast around a fire and. And that's Apollo bay there and then down to. Let's see. I didn't get it all in the one spot. That's the, you know, the twelve apostles and the great Ashen road.

It's the eleven apostles now, isn't it?

Yeah, I think it is. Yep.

Yeah.

So yeah, that was a bit of excitement for me and yeah, that's. That's my town now. I think you've got some as well. Shall I bring up yours because.

Why didn't you mention camping? My nine year old right at this moment is on a four day five, five day, four night cabaree. He's in the cubs and what I didn't realize when he joined cubs is that 20 years ago girls joined as well. There's actually more girls and cubs than boys in his pack and all the leaders are girls as well. So they've gone off to cabaree. There's 3,708 to 10 year olds at somewhere near the Dandenongs. From all over Australia. There's 1600 volunteers. There's a thousand tents, there's 1.7 kilometres of sausages and 1,140 litres of custard and lots of mud and I imagine lots of very tired children at the end of it. But I looked at some pictures and, gee, I'd like to join up. Gotta say.

Yeah, I'm sure it'd be fantastic. They'd love it.

Absolutely. So, yes, but they did have to have a minus five sleeping bag, so they didn't have to go.

Yeah, so did I. I found it.

Here's some pictures. So this is the Brisbane workshop. So this is when we were starting doing the analysis on the dot maps. We had the two teams go up against each other and then we've got the next one and actually, I think that's Russell there on the left. And then the picture he flew up from Melbourne. He realised he couldn't buy in Melbourne at the price point he wanted and didn't want to go regional, so he moved to Brisbane.

He didn't have a great set of suburbs matching his criteria, so he changed states, which was good, as we always say. Geographically agnostic.

Absolutely. And it's been a lot of art for me this month. So my husband, as you probably have heard, previously, gave up work to become a portrait artist. And this is model Miriam and this is the painting that he painted of her.

That's an amazing shot. It's an amazing painting. It's fantastic.

It's at the Salon de Refuse in Melbourne Hilton until November, I think. And the Salon de Refusee was actually started around 1900s or 1880s when they had the Great Exhibition in London where they had all the famous artists and those that were never chosen, like the Matisses and the Monets that had a different type of art, decided that for those that were refused to go to the Great Exhibition, they'd have a Salon de Refusees. So every year those who chose the Archibald or some of those great portrait paintings get chosen for the Salon de Ru Fusees. Todd won People's Choice last year and we got a call last night and this one has just been purchased by a lady in Adelaide. So lots of art. Off to yearing stage.

And guys, that's a painting, not a photo. Just in case you're wondering, that's actually a painting. Even though it's.

Yes, it does. Photorealistic painting. And anyone who has Foxtel, what is it? The documentaries channel, channel 133, the arts. There's an Archibald series on at the moment. The last one was on Tuesday night and the packers prize was announced during that episode and the packer went through and said, oh, these are my top three. And the picture that Todd did of Nathan Lyon, the spin bowler, was one of his top three and unfortunately wasn't chosen. But he and then I headed last week to Port Douglas. So I think this is, this is me on a boat going very, very fast, trying to smile whilst my sunglasses are here.

Oh, this is the fast catamaran. Is that the one?

No, this is. It's called this reef Sprinter so it's really good with kids, et cetera and you don't want to be on the water for a long period of time. So the quicksilver takes like six, seven hours and the Sprinter gets you to the Low Isles in 15 minutes and then you're snorkeling amongst the. The coral. So fabulous. And then the next shot is actually of the little church, St. Mary's so I actually got married here. So this is, I think it was my 12th trip to Port Douglas. So yep, married. And there's a sunrise for you. Love it. And I don't know those of you who've been to Port Douglas, there's a drive between Cairns and Port Douglas, it takes about an hour and the next photo actually shows you just. You pull up halfway along and everyone just stops and makes their own stone sculptures. So we just sat there, hundreds of them and made a bit of a stone sculpture and left our little mark and left. That was cool. And then I headed went to a ball. Don't go to a lot of balls. Got to be honest. In actual fact, the last time I went to a ball I met this man and that was in LA when I won one of the top mortgage brokers in Australia and they took us to LA and they had a ball and we met Adam Elliott who just won a logie Harvey Crumpett and headed to a ball and he was there, one of the guests of honours. So I did a bit of a revision. So it was nice to meet him again. So yeah, had a bit of fun and hanging out. So yes, another big action packed month, but lots and lots of fun. That's it. That's it from me. Is that it for you, John? Any other exciting things you want to share?

No, that's about it there. I just saw a message from Mark there just about the the done for you service. Call the office Mark, or jump on to support your propertysuccess.com and yeah, we can chat about that tomorrow or Monday whenever you would like to contact us.

That's really exciting. I think the thing that I love the most about that is for people who are just time poor who have Given up with that whole question of where do I buy it kind of just like gets all, you know, we've bought all the expert reports. You don't have to buy them. We get all of that research out of the way and just come to you with, you know, the three or so suburbs and go, here you go. So, God, I wish it was around when I started.

Anyhow, I said to Amabel, I'm just going to buy this myself and make you guys. Now that I've set it up, I know it's really good.

I know, I know. I'm going through it all the time, playing with the macros, going, this is fabulous. I'm just going to put another criteria and find out what comes up. So, yeah, and then getting into those reports and then verifying everything. It's. Yeah, it's great. But anyhow, so let's move on. You know, I'm pretty sure, John, those people on listening to these delayed or usually fast Forward the first 20 minutes to miss out what we've listened to.

The second 20 minutes.

Anyhow. All right, so let's do some quick housekeeping. If you are on a computer and you're experiencing any problems hearing us, well, you obviously haven't heard us, but please, you know, there is an option to actually use your telephone. So remember that for the future you can just change your audio options and just call in to a local phone number. The telephone number can be found in that sidebar. So under the audio options drop down menu and look, you can call from a landline or mobile or even a Skype account. So easy, easy ways to do that. And we've had people dial in here from their iPad, so we know that people on the move from the commuting on the way home, et cetera, have dialled in quite easily, mobile wise. But when you do have a question, all you need to do is actually raise your hand by pressing the little hand icon in the side menu bar. It is small, but hopefully you can see it. And when you do do that, it notifies me that you've got a question. And I do prefer to chat to you rather than have you type in a question. So what I'll do is unmute your line. So make sure you've got your microphone in because I really like to be able to have a chat and get to the bot the questions because often when people put a question in the chat line, it's a one dimensional kind of answer. But if I can actually get to the bottom of what your challenge is, I can really help you move forward. And that's what I really want these calls to be about. So, once again, nothing is a silly question. If you're new to these calls, no one knows you're new. Everyone has been where you have been before. So please ask the silly question because there's probably 10 people thinking about it. And I know we often. I don't know, John, you might get the same. Maybe every week or two, I'll get an email from someone saying, I've been listening to, you know, the past two years worth of calls and there's something you answered back in 2016 that was exactly the question I needed answered. So go back and have a look at the old calls as well.

So your questions help everyone else.

Yeah, absolutely. And look this lastly, you know, John and I aren't technical gurus and we can't supply technical support on these calls because we're really kind of concentrating on fixing the challenges that you're working through at the moment. So if you do have any challenges, Please just email supportysuccess.com not getting emails or not being able to watch videos or whatever it is, and we'll get the right people to fixing your problem as quick as possible. And we've just had a new team member join the club as well, Edge, and he'll be. He and Diana together will be helping you out with all of your questions. So it's a very exciting time for us. So, John, I reckon we're ready to start some questions.

Fantastic. All right, let's see if we've got some hands up. And look, you know what, it might be just. You might just have to keep on going, Jane, because there's no hands up and there's no questions in the chat.

Oh, my gosh, we must have done it so right and answered all the questions that we had.

Well, look at a question and I'll unmute your line. Just click the little hand icon.

I've got some things to share while people gain their confidence.

Sure.

So I might just take over the reins of the screen. Yeah.

Come across to you. Let's see. There you go.

Great. Okay, so I posted in the your property Success club earlier today the latest Heron Todd White report. Now, Heron Todd White, just to give you an idea, you know, these guys are valuers that are around the country. There's thousands of valuations going on every month. So you know when they report out these reports every month, you know, when we're reading the data magazine in the back of magazines, you know, your property investment magazine for Instance or API or wherever. And I just mentioned API because API is back online at the moment. Not a printed, printed magazine, but it is back online. When you are getting that information, it's usually two to three months old. So I'm always trying to get the most up to date information. Now. Well, obviously we spend thousands of dollars every month, you know, buying that information from SQM Research, the suburbs, like the software. But for those of you who don't have access to that, then, you know, this is around where you can get the most up to date information.

And you've been getting this for years and years.

2007.

Yeah, well, you came with one of.

My courses, what, 2010, I think.

Yeah, 11:10.

And I've been reading these every month. So it came through today. I had a quick read. But one of the things that I really enjoy is the fact that every month there's a challenge for the valuers. So they might be, you know, find a scenario within your capital city or your area that's less than $500,000 or you know, find us, tell us about what's happening around infrastructure. So this month's theme, which is really interesting is they've said to the valuers, tell us what the typical type of property looks like. So I'll just give you a little bit example for that. And the reason I think this is so interesting, this is free, just go to Heron Todd White and subscribe to their monthly newsletter. But the reason that I like that is that sometimes, you know, we're talking about being geographically agnostic and you know, if you're going to go and buy in, you know, Perth or Adelaide or Hobart or Brisbane or Newcastle and you don't know those areas. You know, we've taught people, you know, through the Ultimate Guide to Renovation and a lot of our courses, how to find what the typical property is. And we can do that through, you know, unpaid resources like census or we can do that through paid resources like RP Data Professional, for instance. But you know, and I mean, obviously, obviously we offer RP Data Professional for people to subscribe to on a month by month basis. But not everyone wants to do that. They might just be curious, they're not ready to buy. So this is a really great way to kind of find the information that's coming up. So this month in October actually covers this up. And what I've got pulled up here is actually the property clock. And we talk about the property clock because we hear reading in the media, you can pick up the Australian and the Australian says there's a property bubble or the bubbles in a burst. Now, the Australian obviously covers all of Australia and we look here at the property clock and it says, well, you know, in actual fact, you know, Toowoomba, for instance, I spoke to a new mortgage client this week who was talking about. One client was talking about buying in Toowoomba and another one who was saying, we've got two properties in Toowoomba, there's so many mortgagee sales there, we can't sell them. So it's interesting, the perspective. One person saying, Jesus, opportunity going on, the other one's going, no one's buying because it's a dying market, it doesn't have the economy. So, you know, it really gave me some sense of having Toowoomba on my radar and looking at this here saying, well, it's approaching the bottom of the market, so maybe there's a recovery. But it would definitely need more research on to what's the underlying economic value and population growth and infrastructure that is justifying you to invest in an area like that. So, you know, we can see Perth and Darwin still going down.

Most of those names, we could probably put them into the suburbs. Having just been through these multiple times in the last few weeks, we stuck those in the suburb selector software and applied just even the first level of criteria. We'd probably only be left with, you know, but you could count them on one hand, put it that way.

Exactly, exactly. And you know, that simple criteria like vacancy rates and number of sales and, you know, percentage of renters, for instance, and yield. So, you know, that would be the first level we'd look at. But, you know, you can see here, we know that Perth and Darwin is still struggling and going backwards. And you know, we, we talk about the market being like a J curve. You can imagine a big J. Everyone wants to kind of buy right at the bottom and ride that huge wave to the top and we don't know how to buy at the bottom. So we're watching these kind of indicators to say what's happening at the moment and is there any interest? And, you know, I was speaking to someone in Perth, just doing a bit of research over there for one of, one of our dumpy people and just seeing what's happening. And I was talking to some buyer's agents and one buyer's agent said, you know, finally there's been a stock drop, so there's starting to be a few short shortages. People aren't desperate and just trying to sell.

That's Perth is the first time in.

Years in Perth Yeah, so you know it's kind of some of those indicators around, you know, what's starting to happen in the market. So you know a lot of these regional centers we can see Brisbane started recovery, Melbourne is really approaching the top but we've got that Mid north coast. So you know that Port Macquarie area which came out in a report this week I read as one of the highest searched areas, the number one searched area for investments at the moment. Sydney's at the top, Coffs Harbour is at the top and Newcastle and the New South Wales Central coast. So I think it's been 18 months that I've been saying look at the commuter cities, cities, look at the Wollongongs, the Newcastles and the Central coast and the Shell Harbors and the Geelongs and you know, the Ballarats and we can see those people who have been buying, trying to buy in the Central coast and Newcastle are starting to say, you know, everyone is moving up there from the Sydney, they're not moving to Brisbane to buy their investment property. They're going up to the Central coast in Newcastle and we're seeing that come through. And we look just a little bit to the left. We're seeing the Ballarat's coming through as well and you know, and Wollongong is coming through as well. So I think you know, then the Mid north coast. So we're really seeing, you know, that area starting to transition. So it's interesting, you know the, the big takeaway here is when people say things like, you know, the market's going to bust. There's so many markets within the markets. And what's interesting, even when we went and did the research into our last hotspotting workshop in Brisbane compared to this one, Brisbane had performed at like 2%, 2.4 per annum, 2.4% per annum for capital growth in the last year. And the suburbs that we chose outperformed, that doubled it and we had some suburbs that did 9%. So we know that you can be really super selective within areas and it's about targeting that. So that's. I'm going to keep talking until you tell me. I've got a question, John.

Yeah, you have got a question and it's right up your alley but I'll let you finish.

Okay. Units might be interested to see where units are very similar. The units are starting to decline in Sydney but this is what I was saying about the actual report. So I'm not sure if you can see that. But you know, this is kind of going to Sydney and saying hey, this is kind of what a typical dual unit looks like. This is a typical studio unit. This is what the Sydney market looks like in a ring. This is what it looks like middle ring. So you can start really getting that thrill for what's happening and what's really good about this. We talk about Illawarra, Southern Highlands, we talk about the central coast, you know, they go into those regional areas where they have offices as well, you know, Newcastle, you know, and they're entertaining writers, you know, same same, but different. Nothing's really changed in Newcastle over the decades. You know, we're still after the 1950s rebuilt red brick warehouse, you know, so this is a really quick way of looking at things and make sure you go all the way to the bottom. Because when you do that you actually get a real indication of what's happening in the market as well. So they do break this down. I'm trying to move this so that I can make this a little bit bigger for you guys to read because I know how hard it is when you've got classes my age. So yeah, we've got some information here about, you know, what's happening in these major cities. You know, there's an oversupply in Perth of available property relative to demand. You know, there's increasing rental vacancies, soft demand for new houses. Trend in new house construction is declining, volume of house sales is steady. Now red means it's changed from the previous month and it's got a higher risk. So would have the previous month it might have meant that, you know, it was a lower risk position. It's at the bottom of the market. And the interesting thing about this is does offices and commercials as well. But it also goes into some of those regional areas. So here we've got Ballarat, Bendigo, Echuca, Latrobe, Porsche, Melbourne, Maduro. So you can actually start looking at what's happening in the market in some of those regional areas. Because sometimes, I mean, I know from an affordability point of view it is difficult to be able to afford some of the capital cities. Especially when we're talking about 1 million plus in Sydney and 800 in Melbourne and 600 in Brisbane. We are looking around 400 in Adelaide and Darwin and Hobart for instance. But still that can price people out of the market. We've got clients buying in ballarat for under 400, you know, Tamworth for under 250. You know, there's so many different people I speak to 10, 20 people every week that you know, have think they can't buy because of affordability issues. And the reality is, you know, there are still some markets and having just been to Port Douglas and Cairns and you know, I've been going there for 20 years, it's the most prosperous I have ever seen it. So still does not deserve cans. The shops are let, they're not for, you know, empty. Yeah, there's difficulty in, you know, there's, there's no vacancies on a lot of the accommodations. So I don't know if it's the dollar or what it is that's happening where it's expensive for people to go overseas and they're, you know, local tourists but, you know, where it's. Port Douglas looks a lot more prosperous than I've seen it the last 10 years and Cairns, I have to be honest, I don't go to Cairns. I just usually just drive past it. But Cairns has really got a bit of a dynamic to it. An aquarium has just opened this month. There's lines around the corner for that. There's construction going on. I still think the marina's dead. Everyone thinks it's pretty fancy. There's still lots of empty shops there. But you know, I don't. I've never believed the Cairns market as being an investment grade market, but I know a lot of people have been convinced to purchase there. But I just. The Port Douglas in itself has some prosperity about it. And I'm not saying buy there people, but I'm just saying that, you know, you can start looking at this and it says cancers at the start of the recovery. So this can give you a little bit of indication of what's happening in the market before you jump in.

Yep, great. All right, no hands up still. But we do have a written question. So while we're doing this one, stick your hand up if you'd like a question, otherwise we might all be going home early. So Rez has got a question. Jane, what does the lending industry look like at the moment? Do you think it will tighten in the future?

It's a great question. We've seen such significant changes over the last two years and I was just thinking about this today. You know, around about four years ago, three to four years ago, there started to be some tightening in New Zealand and this started to be, you know, this cause of an oversupply of units in Auckland and the market was, you know, running away and then it was around that post GFC or the low interest rates that we saw that the banks and the governments did to stimulate the economy. So the governments did but they started pulling LBRs back three to four years ago and they started saying, if you're an investor in Auckland, you know, you need a 40% deposit. And you know, they started putting lending criteria on. And I noticed just recently in New Zealand that they've just for people who are kind of in the business of flipping properties, they're starting to call that an income. So you're going to be taxed on.

That income, which is pretty popular, right, because they haven't got capital gain tax.

They don't have all stamp duty. So, you know, they're kind of making things a little tighter. Two years later we start seeing APRA and ASIC step into the ring, you know, late 2015, saying, oh, you know, to the banks, we're going to start looking at what you do. So remember, AHPRA looks after the banks and says you got to comply to all the regulations and ASIC looks after the consumer. And so ASIC kind of stepped in and said, oh, you know, we really want to make sure the consumer knows what they're doing. And you're giving away all this money. Basically people get interest rates less than 4%. And Apra said that pretty much the same thing. Look, we think you've given away money a little bit too easily. And to be honest, first six months of 2016, the banks did nothing. And around mid-2016, the banks, the APRA started saying, okay, now we're going to put some real restrictions on this. You need to be responsible lenders and you can't lend people money based on a 4% interest rate when we all know that the long term average is around 7, 7.5%. So when you're assessing someone's ability to borrow with their existing debts, make them 7.5% principal and interest because it's five years time, any interest on your loan usually flicks to principal and interest. So to the point, I'm not against this because you know, in five years time when everyone who's kind of over committed flips to principal and interest, all of a sudden you've got all of these extra costs and maybe they're going to have to sell and we have all these copies in the market. Yeah. Then we have a bubble, so concerns and then in. And the banks also said, sorry, APRA also put on the big banks that they had to hold more money against their loans. So we saw some issues overseas where, you know, people did run on the banks and they didn't have the money against it. So the second and third tier lenders, you know, Banquest and AMP and Adelaide and all of those lenders usually had to have a lot more money against the loans in their coffers. The big banks didn't. The big banks had to increase the amount of money they had. And hence why we saw all the term deposit attractive rates that came through only slightly for a little while. And then APRA said, hey guys, these investors are still buying. The Sydney and Melbourne market are taking off. The RBA Reserve bank can't just go and put interest rates up and hurt all of those people with credit cards, debts, because their interest rates will go up as well, you know, and although maybe the retirees will be going yay, finally my term deposits, you know, although those rates go up, they're the only ones benefiting. So RBA cannot penalise all of Australia's economy based on the fact that it's a couple of markets that are taking off. And so APRA for the first time ever stepped in and started regulating. And so then they said, we only want to have 10% of any new loans for investment purposes. Now lenders like AMP pretty much left the market, but they were looking at LVRs around 60%, 60, 70%. If you wanted to buy an investment property, CBA closed the shop completely early 2017 said, you cannot refinance an investment property. Which was insane. We had, in our mortgage business, we had people who were in the middle of refinancing CBA and we were booking settlements and they were not turning up and going, where are they? And I went, oh, we changed our policy yesterday, like, yeah, but we booked two months ago, like, no. So that's, that's how seriously they took it. And the banks were going to be penalized millions of dollars if they didn't comply. So they were going to, they actually were paying our clients to the additional, the difference in the interest rates for them to stay at their existing bank whilst they sorted this out. So, you know, which is much cheaper than millions of dollars of fines.

So was there people that question settle on properties though?

No, these are refinances, it's only refi.

Okay, yeah, yeah.

So they made things a little tighter, the assessors making things tighter for investors. And then APRA came back and said, we still haven't got control over this. We're going to start. And ASIC to some degree said, all these homeowners that have got interest only loans, should they really have interest only loans? You know, is this really relevant now? The banks took opportunity through all of this. You know, when the big banks had to put out more money against their lending. They put their rates up when they had to, you know, curtail investment lending. They put their rates up for investors when they had to curtail interest only lending. They put their rates up for people with interest only loans. And then there were some lenders that we still have who are not part of, don't fall under APRA's regulations at the moment that still assess your existing lending rates and maybe 4% interest only. And so we still have a couple of lenders where we can get higher borrowing capacities for our clients. But APRA came in again and said the big banks who fund these kind of warehouse fund, these smaller banks, we're going to now put restrictions on you in the future. We're watching you. So that's one change that can come up. We might see the closing the door of some of those loans that, who.

Are those kind of second tier ones.

Liberty has been, really, really has been taking a huge amount of volume of loans because they were assessing at 4% interest only rather than 7.5% principal and interest. And another home loans, PEPPA through home loans and then home loans has an offset account too. So there's not all second, third tier lenders are considered bad. They're all backed by the rba. So it's not like, you know, it's a, someone take your money. Yeah. So you know, there's still lenders that would do that. So we've still put some volume through there. But Liberty has taken advantage of this. You know, if you want interest only, it's another 0.25% if you want it, you know, like the other lenders have, if you want an investment loan, another 0.25%. And by the way, if you have more than two properties like a home and investment property, and this is your third, we consider you a professional investor. And so we're going to make it another half a percent. So it's a 1% higher. So you're paying maybe 5.6% rather than, you know, 4.6% which in the scheme of things an extra three or four thousand dollars a year to make buying a property in a better area, that's going to make you 40 grand a year in growth. No brainer. But still there's some opportunities going on. So to answer your question, I see that we're probably going to see those warehouse lenders lending dry up and we're also going to see people, the lenders take advantage and possibly put rates up. Now I do have a report here. Now, the RBA Met again on Tuesday, first Tuesday of the month, except for January. And Bill Evans here, I'm not sure if you can see my screen still. He's the chief economist of westpac now. He's doing a commentary on the Governor's commentary on the RBA and essentially saying, look, there's some attention that's going on here around what's happening in the market. There are some housing markets easing. So we've seen Sydney, this market come back a bit in the last month. We've seen some changes in employment, et cetera. However, they're still saying that they're not really expecting a rate rise until maybe 2018. Now, Bill from Westpac has jumped in here, as you can see here, and he says they are still saying 2018, 2019, no rate changes. That's what Westpac's putting in all their calculations and that's how they're doing their predictions on what to offer the market on fixed rates. So I think that's kind of interesting. So I read these reports every month with interest just to see what is happening. And as you can see here, the RBA is saying APRA has targeted what they call macro prudential policies. And we're thinking they've kind of got it under control at the moment. Now, the big changes that we're possibly going to see is those warehouse lenders are going to lose the funding or have come under the compliance regulations of apra. But also there's incredible attention to people's living expenses. So, you know, the kind of conversations as a mortgage broker we're almost having now is like, do you really need that extra bottle of wine a week?

Okay, stop buying ice.

So we're going down to budgets. Yeah, we spoke to someone just this week and they said, oh, look, I allocate this much a month to holidays and I allocate this much in case, you know, we want to go away as a family or do activities. And I had like a $10,000 monthly expense. We came back and said, how much do you really spend? Which is less than half of that. Now if you tell me $10,000, you know, I need to put $10,000 a month down as your living expenses by law, basically on my any application I send in for you. So, you know, having that kind of thought around what is necessary for you to start spend and what you need. And we had a bit of a chat about this yesterday, didn't we, John, about, you know, people always think that they need more, but I think living.

Expenses little you need when you work it all out. Yep.

Yeah.

Particularly when it comes to portfolio time.

Yeah, exactly. Exactly. So, you know, I think actually I've got. What have I got here? Now, you may have used my investorschoice.com portfolio calculator. Just go to investorschoice.com head over here to the blue calculator, have a look at the portfolio calculator. Now, we've used this many times to say, how many properties do you need now to get the lifestyle that you want and the time period you want? But these other tabs, rarely used but equally as handy, actually lets you go through and have a look at how much you really need a year to live off. This is your basic living expenses. And I always, I mean, you know me, I always put a buffer in there. And I allow you to put a buffer of maybe three months of basic cost. So you've got something that, you know, that you could live off. And then I've got this next tab that says, okay, well, let's bring that forward. We know what your basic costs are, but how about those little extras? So as you can see, it's my terminology, little luxuries things. It's not a fancy budgeting calculator by any stretch of imagination. But, you know, you could go in there and, you know, find out, you know, how much you really need to live off. And I think this is just a simple exercise. You could go to MoneySmart.com, which is the government website. They've got some really great budgeting tools as well, but people don't need as much as they think they need. And when I look at people's fact finders regularly with Lisa, we're looking at living expenses going. I think these are really buffered. So I think in the next six months we're going to see real attention on living expenses. We see maybe some of those lenders that have been still lending, not lending. And definitely the conversations we're having daily with assessors, with banks, they're tightening. So they're asking questions, they're going through people's bank statements and they're saying things like, do you realize they took money out at a RSL club? Were they gambling? Did I realize every Thursday night they take money out the RSL club? So that's the kind of quality of questions that are being asked and due diligence that's going on now. And we're getting people's bank statements and we're going through all of those kind of things and trying to see patterns.

Wow.

So there you go. It's all happening.

Reza says. Thank you so much for the detailed information.

Gee, you got to be careful what you ask for, Reza.

It was right up your alley. Now I've got another one here from Sky. Hi Jane and John. What's your opinion of purchasing near new versus old established property when prices are quite similar and she's not concerned about building equity through renovation in this instance.

So the question is buying new versus old new new versus old. And the prices are similar.

Yeah, prices are quite similar.

Look sky, there's a lot of pros and cons for each scenario. So I mean obviously I love strategic renovation which you can completely wiped out of the answer I can provide you because it's hard to renovate a new property. But what I find is when I look at the near new against the existing properties, often what I'm seeing is an existing property on 6 to 800 square meters and a near new on 400, 500 square meters. And people are thinking it's like to like just because they're around the corner from each other in the same suburbs. So I would caution you first of all to get an idea of what the comparative prices are on the square meters and just see if it really is like for like but there's obviously depreciation benefits from near new and less maintenance costs. So there are definitely benefits. I wouldn't be buying new new. And some of the, you know, talking to people who, gosh, I don't know how to word this. Talking to people who know the system of how developers sell, they often wait until the last. So people who want to buy a home usually jump in first to get the first preferential, you know, house and land packages or positioning. And the people who are more astute as an investor in astute as you can be buying brand new house and land packages they are they're waiting to the developer goes well I've made my profit. Now I really need just the rest of this cash so I can get on to the next stage. So they're buying the last of the stage. So they're actually, you know where you might have bought a house and land for $400,000. The person around the corner is buying for 320 or 300. Well unfortunately they've just set the market for what your property's worth because you're in the same build time frames and sections and they're not seeing that tiny bit of extra positioning that you want as a benefit. So new new. I really, I still have never been convinced that there's a market there for it.

And they're very careful about the way they release those houses onto the market too. They want to control that market as much as they possibly can to restrict the supply. So they keep the demand up there. So they keep competition for each of those sales. So yeah, it's when you see at the end of that development phase where you see that capital growth start to stagnate and you see that with the new estates that come online, they get a little peak in the building thing and then they tend to flatten off. You there, Jane. Oops, we seem to have lost her. Jane, you're not coming through there. You might just want to check your audio there in the meantime.

I'm back.

Oh, there you are.

So I thought I'd just be sneaky whilst we had that conversation and pull up a report to kind of prove a point. But hey, sneakiness, my sneaky left me. But you know, it is, it is really, it's an interesting question because, you know, sky, if there is the opportunity to buy near new, as in, you know, a few years old. And I remember having this conversation with John Edwards about buying off the plan and it was, you know, it's a little bit of a different question, but I was saying, you know, what are your thoughts on buying off the plan? And he was saying most off the plan properties are more expensive. Two bedroom units are more expensive off the plan than they are as existing two bedroom units that you'd be buying as established properties. And he said in his opinion they should be less because there's more risk associated and the developers are actually working in the fact that they think there'll be capital gain in the next year or two. And to some degree I think that's the case. But with new properties, you know, there's already been some resales, so there's already been a bit of the market established and we've been talking in estates as averse to someone who's just bought and built in an area and that's what you're buying. But so I wouldn't be buying in a regional city that had townhouses, for instance, if that's the new type of property and not a lot of people are buying townhouses, Whereas in the 10ks of CBD we're seeing that infill because just from the population demand. So you really have to be right for your market depreciation, definitely on your building works, etc. There's definitely some benefits associated with the near and new properties as opposed to the old properties. If you don't want to renovate. So pros and cons definitely have a look at it, have a look at the areas. And I just wanted to pull up this pain and gain report from RP data because this is always an interesting report every year because it actually goes through and it has a look at, you know, the percentage of people who have bought a property and then resold at a profit compared to a less to a loss. So in Sydney, you know, up to, you know, this quarter, 97% of people who have sold Sydney have sold at a profit compared to 2.6 at a loss. So, you know, it's interesting when you start seeing this and then you start seeing the pain of the units. So there's a lot more people who are losing money and a lot more money in, you know, for instance, the Perth or, you know, the Darwin unit market. 50% of people who've sold a unit in the last quarter in Darwin have sold for less than what they bought it for. So, you know, you just, you look at this and then you look at, you know, capital cities overall. So there's a whole conversation here about capital cities versus regional units versus houses, new versus old. But I think, you know, when you start having a look at this kind of information, you know, it starts giving.

You.

An idea of, you know, where some of those concerns could be. So, but yeah, so I just wanted to pull that up to give you an idea of, you know, what people are looking at. And I just want to show you just because this always proves a point to me as well. It's just the length of time that you hold a property. Am I getting like epilepsy because I'm going through so quickly but the length of time that you actually hold a property. So I'm just going to pull up here the first one that comes up. So this is Sydney. So you know, the median hold period for those that made a loss, you can see they didn't hold the property for very long. Those are made a profit were over seven years. So once again, you know, those who made a loss lost, you know, between what, 70 and $300,000 or 28, $300,000 where those made a profit made between 300 and $500,000. So this once again, you know, brings up these sweet spots within the suburb as well. And the typical property within the suburb. So I would not hesitate to guess that these bought in the wrong area for their strategy and they didn't buy a typical property that people were in demand property. Yep.

Great. Got another question from Reza here. Which is another good one. If someone keeps buying properties as a primary place of residence and then they rent it out after a year or so and buy another principal place of residence, can they continue to build their portfolio this way even with the current restrictions, lending restrictions?

Reza, this is my home hopping theory and I was hoping you weren't going to ask me about capital gains tax because it always gets into you should speak to your accountant kind of answer. But you know, let's just say that you buy a home, you renovate it, you add equity and you add value to that property, you access that property. So let's say you followed the Trident strategy. You bought below the market, you made maybe 20, 40 grand by buying it. Well, you renovated, for every dollar you spent, you made $2. So you added equity there as well. And you're in a growth area and let's say you did 5% growth for the year. You've got these three ways that you've made money on that property. So you've created some equity so it gives you an opportunity to take that equity out and buy the next home. Now this is where it really taps into the, the lenders restrictions and less appetite on investor lending. At the moment you're not buying an investment property, you're actually buying a home. So the lenders are loving you because they're not making money out of investors at the moment. They have to find their income elsewhere. They're not making it out of term deposits. So you know, that's why there's so many great rates for principal places of residence and such a competition at the moment. So you're actually capitalizing on that. The fact that you're taking equity from one property to then go and use for your home, that's considered the purpose of those funds for home, your home. So you can do that almost home hopping exercise and you know, beat the banks at their own game. So I do like that as a strategy. Yes. And you know I've done, Lisa and I just this week have been going, I think we've done like 50 servicing calculators to look at scenarios of different scenarios for people and different rent festing versus mum, dad and kids buying a home, buying investment property. You can usually borrow more as a homeowner than you can as an investor. So it just depends on your situation but I think it's a great strategy.

So at what point where you're holding the principal place of residence and turning it into investment property, does those app restrictions start to bite?

It would only come back to you if you Were actually going to go back to the original property as an investment property and try to refinance that as an investment property.

Okay.

As a standalone rather than, hey, I'm just trying to tap some equity to buy my home from it.

Yep, yep.

If you went back, so, so that's why it's so important that you understand what your strategy is before you start your initial finance. Because your mortgage broker will have that conversation with you and if they're an investment savvy mortgage broker, they're going to have that long term conversation, what is this property for? And they'll make sure that you're with a lender that will allow you to have the servicing to get that extra equity out in a year or so's time. You have that servicing capability now based on what the current situation is so that they can plan for that. Now things don't always go as planned and banks can change things considerably and things like amp will come out with a 60% LBR with no cash out. And you know, it just means you have to move lender. But if you were then having to go back and say, I really, I'm not happy with this loan that I've got now, I have to get a new loan as it is as an investment property, that's when you start coming under the probably more vigilant investor lending practices that we're seeing.

Yeah. Okay. And so when most people think about home hopping, do they tend to think about it as a, as a sell and upgrade or is it a, you know, how many can you hold? I guess is the question, because I was just in.

Well, it comes, it comes down to your borrowing capacity. There is a capital gains tax advantage, but it is, you know, there's a six year rule and it's usually based on how long you lived in that property as a portion of time that you owned the property. So if it was one year as a home and five years as an investment property, it's only one sixth of what you can claim as investment, etc. And it's really important when you do this, you value the property before you move in, you value before you move out because the depreciation and everything will be based on that period. There's another great way you can always grandfather some of the new depreciation changes that came through in the budget this year in 2017, because now you can only depreciate the works that you've done yourself. You can't really depreciate all the renovations and things that have been done previous by someone else. By someone else. So, you know, if you're holding your property yourself, you can actually depreciate those renovation costs against yourself, against your own income. But you know that that whole traditional method of buy a home, live in it for a while, dad paints the house over the next 10 years, you put a pool in, your porch becomes a pergola and you lean to becomes a garage and you improve your property and then you sell it.

Yep.

And then you buy a new home. All that home hopping in the buy, renovate, sell, buy, renovate, sell in a shorter period of time is essentially that long term thing that most families do anyhow.

Yeah. Just a property ladder.

The issue is, and you know, once again, not a financial expert. You did do that disclaimer at the front, didn't you?

I did, yeah.

Talk to your accountants or your financial planners and I know a lot of people don't have financial planners, but speak to your accountant and just get them to confirm with you what we have heard anecdotally, which is, you know, the ATO doesn't say by the time you get to the second or third property, we consider you're in the business of flipping properties and hence there's GST and all these extra costs and you don't have the capital gains tax exemptions of, you know, 50% after the holding it for a year and all of those things. So speak to your accountant and find out, talk about your plans and find out what their thoughts are on it as well. Because it can, you know, it can start limiting your benefit when you start thinking about the fact that there's additional costs and you're in the business of doing it.

Yeah, great. Good tip about valuing the property first too. I was speaking to someone the other day and they were going to perform a renovation and they weren't, they didn't actually know what the current value of the property was and they kind of just figured that it's what they paid for it, which was a couple of years ago. Plus the renovation costs would be the way you calculate whether you could add the value through the renovation or not. And they weren't really taking into account. Well, okay, you could get market value for this now without doing any renovation. And so that's where, that's where your starting point is going to be.

Yep, absolutely. Yep. So I, yeah, I think there's, you really need to do your numbers. And it reminds me, you know, this week for my gold and diamond mortgage clients, I do deal reviews. So when they've put in an Offer on the property. And they're in, you know, the finance clause, and they want the second set of eyes. They send me all their criteria, and I run through using all the stuff that I have to look at the property. And this one client had been looking for a flip property and had found this property. And she had done fantastic research and made sure that there had been some growth in the area. And she targeted a suburb that had a high degree of owner occupiers, because she's flipping, and that's the main market. She was in the streets where the owner occupiers want to live. You know, she was ticking all the. All the boxes. 520 was the median price, asking prices. 420, she was buying below the market. She was renovating with the cost of renovation to up the market. But when we started looking at the numbers, because she was flipping, you know, she had done all the research in the suburb and the location, but the property itself had been, you know, I went through RP data, had been on the market a few times and come off the market, and there was some buyer objections. There's some concerns about the flooring, and the budget was just too small for the renovation. I believed I needed her to go back and do the research a bit more on that. But I also had some concerns about the fact that she hadn't put capital gains tax or selling costs into her numbers. And when I did the numbers, it was like 10 or $15,000 kind of profit, which when we talked about looking at the flooring cost, there was maybe a 10 to $15,000 additional cost in what could happen in having to pull up all the flooring and fixing it.

Yeah.

So it can go wrong. Exactly. And it's just those numbers, they're so important. And using the quick quote calculator and making sure you've got everything in there kind of would have given a little bit of extra context of is there money to be made here? But she'd follow the process so beautifully. The suburb was right for it. The street was right for it. If that property didn't have those unknowns around that renovation and there was enough for buffering there, she could have made money out of it. But it was very tight. So you just have to be very conscious of that.

Yep, Yep. It's all down to the numbers. I think that starting at the end value and working backwards, I just think is the most important, infallible way to work out your renovation costs going around. Because if you can do that, then the chances are you won't get caught out. All of the rule of thumb measures like 10% or 15% of the property value. They're good just as a rule of thumb. But you can never make a decision to start a renovation or buy a property to renovate based on that. Did I just see a skull buried underneath? Are you distracting me from. Can you show us that again?

I was trying to not to pause my screen so you didn't see it distracted, but I just wanted to pull up the cost of renovations. But Lou, Lou, who we love, one of our researchers as well, posted this in the your property success club earlier in the week. And someone had bought from a two dollar store a fake skull and they put it in their renovation out the back. And so that when people in the future dug it up, they're like, oh.

Look at this.

So I thought that was a bit of fun. I was like, yeah, you never know what you're going to find in your renovation. Even a skull.

That's good. Now, no hands up, guys. Put your hand up if you'd like to ask a question because we're not too far from calling it a day if there's no more questions. So put your hand up or type in the chat. So just say again, Jane, you cut out there.

So I had a learning opportunity this week.

Oh, what's that?

Well, behind my house there's a new development going up and the developer, you know, they originally sent in, you know, their plans that everyone, you know, kind of objected to them. And the developer himself, I don't want to name names, is quite a well known developer and quite a well known property person and he got one of his own property people involved who came around, knocked on the doors and had very nice conversations with everyone and got rid of any objection that we had and, you know, all's good. And this huge property is going up virtually in our backyard at the moment. It's really interesting to watch. Mind you, I buy a new car once every 10 years. You know how thrifty I am. And they did manage to put concrete on their pour on my new car. So they're doing a bit of a cut and polish on that for me. But so we got a notice yesterday to say that from Lansden's titles to say that there's been a, there's going to be a reposition of the title and our land is going to be reduced by a certain amount because they've realigned the fences. So what has happened and what I didn't realize and this may not, this may just Be Victoria. And it really made me think, gosh, when you buy a property, you really would like to get a survey done to know that your fence is in the right place. And I remember talking to Jeff from the Reno Kings years ago and he was telling me that over in Perth there's a couple of suburbs that everyone knows that the fences are just not aligned to the titles at all.

I've never seen one aligned.

But this is what we learned that. So although they only bought the land behind us a year ago, there's a 15 year rule that says if there's been a fence in position for 15 years or more, then that then becomes the.

New.

The new boundary. Yeah, the new boundary. So it turns out we're going to lose about, you know, 20 centimeters. Centimeters on one end of the fence and 13 centimeters on the other. But yeah. And my husband went down and spoke to them today and said, is there anything we can do? Can you ask for compensation? They said no. And they said, well, they've only earned it for two years. They haven't owned it for the 15 and said no, that they bought the title and the title carries that. So. Yeah, so basically, you know, we're going to wave goodbye to a bit of land with not being able to do anything about it.

Yeah, well, you know, you're probably pinching about 20 mil from next door neighbor on the other side. So you probably gets made up somewhere. Yeah, it seems to be most nearly every fence because they just creep over time. You know, someone goes and puts a new fence up and they. So yeah, nearly every house is like that when you get a boundary survey. But sometimes it's. Yeah, particularly when you're doing like small developments like we're doing. It affects you if, if someone's going to build a carport or something and there's something overhanging because that can be a, that can be a pain because if there's some kind of structure there, then yeah, that's a big deal because they're not as easy to move as a fence.

No, not at all. So anyhow, I'll, I'll keep you up to date with what's happening out the back. But yes, it's, it's interesting. They're up to their third story now.

All right, how big is it going to be?

This is going to be huge. There's two townhouses, so two four bedroom townhouses. So three stories each. Three stories each. Actually, I think the one over the back is four stories. Okay. They reduced it because they're overlooking our backyard. Or something. So. Yes. Interesting. So just a little bit of a learning event there. So there you go.

Yeah, it is good. All right, let's have another look at the hands. Still no hands up. No, no hands, no written questions. Everyone must be up for a early night. Jane.

Loving it. Loving it.

Go on, last minutes, guys. If you want to type in a question or put your hand up, I'll unmute your line. No takers. You reckon they can hear us, Jane?

Yeah, I think so. Put in chat if we've. We stopped talking to you. Well, I guess there's some interesting things coming up. Those people who are interested in Newcastle, we're planning on doing a hot spotting workshop in 2nd of December in Sydney, but we're going to concentrate on Newcastle. So that's pretty exciting.

It is. Let me find the link for that too while you're doing that. Actually Lorraine's. Lorraine's come to the party. God bless you, Lorraine. She always saves us, doesn't she?

Finally.

Yep.

Yeah.

Exterior and interior colors for 2017. Do you remember, remember what Renault Fest we had? We actually had this. A good answer to this at Renault Fest.

Oh, Lou, we're gonna have to come back to you because the ladies that came up with the color schemes which with the Dulux new colors.

Yep.

Gave them to us and we put them on beautiful slide and I can't remember them.

They're all around grays. They're all in grays. All right.

That was what she was using. Yes, but there was some, some. Yeah, there's some interesting. Remember there was the metallics. I have to be honest. You know, I think the metallics Ruby step too far. I think the decorators when they're decorating homes and they're decorating for your own for their clients taste and they're decorating for the moment and resale. They are looking at the color, current color schemes and I believe these date. I mean you're talking to someone who had a purple feature wall, you know, in their property back in 2001. So let me just tell dates. But you know, I think you know the, the old tried and true, you know, antique whites and you know, hog bristle kind of at half strength for the features and you know the chalk white USAs and you know just the one of your favorites, John neutral.

Yeah. And it can be. I don't mind it if it's in the gray tone or if it's in a kind of a cream tone or a tan tone. Just. I'm just trying to keep as neutral as possible. Basically. Or just all white. If I can do it. If I can. If I can go white. Brilliant. Because then I can spray walls and ceiling and it's. It's all great because. Saves me a lot of time and a lot of energy. So. Yep. Neutral.

Yeah. So I mean, although there's, you know, what's the color scheme? And my mother used to be an interior decorator out in Dubbo, and, you know, she used to keep up to date with all the colors and do all these mood. Mood boards for people and stuff. We always had great fun as kids sticking pieces of paper on with mood boards for her clients. But, you know, I think it's. I think as an investor, we really are talking about, well, Lou, maybe you've done a couple of things this year, you know, what kind of colors are you using? Because, you know, I think just keeping it.

That was a Lorraine, by the way. It wasn't Louine.

Sorry.

Yeah. She also says they're boring. I want new ones.

Oh, okay. We're gonna have to put my thinking cap on. All right, Let me talk to my decorated friends. I think I saw Viv join the call earlier. She's got access to a lot of good.

Investing is boring, Lorraine. That's the idea. It's not boring. You're not doing it right.

That's what Warren Buffett says, right? If it's exciting, you're doing it wrong. So. Yes, but guys, get onto the your property success Facebook page. I think this might be our last call for our ultimate guided renovation. Calls students, unless you want to be getting close.

Yeah, I'll just put in chat the. The Newcastle workshop. Now. You'll see there that. That it says one place is remaining for Saturday, 9th of September. Obviously that's not correct. And I haven't updated the. The page like I should have, but.

On you, didn't I?

Yeah, there is. There is places. There's a couple of places for Newcastle I know for sure. So that's on 2nd of December, but it's actually held in Sydney at Coogee. Coogee Bay Plaza.

Yeah, those locals would call that. Yep.

So, yeah, the Perth one's Coogee and the Sydney one's Coogee.

Yep. Ah, there you go.

Two Coogee.

And now I did see a question. Oh, look there. I saw it. John, I want to ask you a question. This came from the club this week.

Hang on. Viv's got a question. Viv's got a comment. I like natural white and quarter strength. White duck. White duck. I'm familiar with Natural white. I've used that.

Is it dual X?

Yeah, you'd assume so. Natural white is quarter strength. White duck. Yep. Yes.

Okay. Okay.

Yeah, natural whites. Natural white's very good though.

John, have you seen this happen before? This came through on the club. Gabriel had a question around this about his. He painted the bathtub and it's been 18 months and he started seeing some peeling and some people came back and some were saying if you don't prepare it properly there can be issues.

That was probably where my mind went to. Yeah, I actually had a chat with him yesterday, Gabriel, on the, on the phone. So we're talking about that. But yes, it's hard to kind of, you know, work out exactly what went wrong. But I would have thought it would get a lot more years than that. I would have thought to put another, you know, five to ten years on, not, not just a year and a half.

Well, it's interesting, sky actually says in the comments that she saw that in the US it's really popular to have acrylic bathtub liners. So. So there's different options out there I.

Think too, that decision making process of painting rather than removing, it's often around the moving of the plumbing or whether it's a hob combination, that kind of thing. Because if you strip out a hob, then you're pulling tiles off walls and that's when I reckon it's really a good decision to paint rather than replace. But if it's a freestanding bath, you can get some really good acrylic baths, like modern looking baths for, you know, maybe five, six hundred dollars. And I'm, I'm probably talking about, let's say a 500 plus level renovation here, as in buy price of at least 500. And yeah, that to me is often a better option to get a reasonably low cost solid acrylic bath which looks, you know, perfectly modern and very attractive and a bit of a kind of showpiece in the bathroom as opposed to. Yeah, so don't just automatically assume you need to paint the bath every time and.

But the thing is, it's like it's the putting in the new bath, putting in the new hob, fixing the tiles, you know, getting the trades to go in, isn't it? It's like that $600 becomes 1200 quite knock on effects.

Yeah. So particularly the hob. Yeah, if you can. Yeah. Well, the other thing is too, you can, you potentially, you can just replace the bath in the hob. So the hob's just basically a cut out Square and you can replace that with an acrylic bath too, which sometimes is a bit. And those start from, you know, mid twos to you know, 2 to 400 will get you a decent acrylic bath to go in a hob. Mind you, your sizes have to be pretty good but typically, you know, baths are between 1600 and 1800 long as a kind of of typical range. So it's, you know, not outside of the realm of possibility that you'll be able to replace like for like in terms of length.

I've just got an image up here, John. David actually got rid of antique white Lorraine and he put in a desku half. Now he does say it's a really popular color over in the U.S. david's quite an experienced developer and renovating his own place at the moment and he says the closest match here is this Dulux D I E S K A U. So these are looking pretty.

Yeah. Which again is just nice and neutral, isn't it? Yep.

Yeah. And it's, it's around A reason I used to use antique white USA was which is a different color to antique white. Antique white USA is because a lot of the older houses I was buying were they had that cold feel to them and I wanted that kind of warmth of the lemony color whereas. And you know, trying to lighten it where, where you've got, you know, the dark areas as well. The antique white really works for it. So you know, we, we're not trying to get that warmth in.

It's got a little bit of a yellow tinge to it whereas say a whisper, it's got a bit of a blue tinge to it. So whisper white you'll often use if you've got a light, a lot of light in the room. Like we've got it at the back of our place, Jane, where we've got the big light windows, beautiful doors and lots of light coming in. So it actually works really well in a light filled space whereas a more of a creamy white wouldn't work as well in that space because there's lots of blue light coming in.

And look, one of the things I do, I just have like a quarter of a tin and I kick off the kick board underneath the kitchen sink and I hide things in there. So I've got usually a knife, a paintbrush, some cleaning equipment, some tiles. So if someone breaks a tile, one of my investment properties I can say the tile look, there's some spare tiles there and I always have a little bit of the paint and I have the same color paint. So I don't really need to do anything. So I had those in all my investment properties. So if I'm flying to Sydney and doing a day trip and I'm like, oh, I'm just going to drop in, do an inspection, I can fix things and some light bulbs. Yeah, just sometimes some of the things you might need between tenancies as well. You don't really want to go and do a whole Bunnings run.

Yeah, it's Madine that uses just the white unmixed, doesn't she? Off the shelf.

Yeah.

So that's her white. So whenever she goes to it, she can just go and get a tin of white off the unmixed of whatever her brand is because I imagine it changed a little bit the color depending on the brand. Like if it's, you know, British paints or Dulux, their, their base white will be slightly different. But yeah, it's. She's the base white and paints all her investment properties in there. Now Lorraine's come back, she's just had a Wyong house revalued. She bought for 337,000 in 2016 and now valued at 500,000. How good is that?

She says you are going back up on my success wall.

And her house is in Hogs, Bristol.

Love it.

Yep.

Nice work.

That's why she's after it.

If you can't give me something else. Oh, we're gonna have to find her a hobby.

Hugs. Bristle's still good.

Yeah, exactly. And I was gonna say the. I just lost my train of thought. Must have been a lie. But yeah, I think with the colors and just making things easy for yourself, you know, as Madine does with her whites and I do with my standard colors, it kind of, it just makes it, you know, easy for you to go and do quick little touch ups and clean ups. And there's a really great little white piece of, I don't know, what would you call it, rubber that you can buy in Woolies, that it actually gets rid of marks off the walls. And sometimes it's running around. Sometimes when there's been some marks and kicks and walls you can just scrub them off really quick. It says a dry thing. It doesn't really damage the paint so. Oh yeah, you can get things. It's kind of in that cleaning aisle but you can get. They're about the size of an eraser.

All right.

So that's kind of what you can use there. So there's a little real handy hints of, you know, cleaning up stuff.

Yeah. Well, that's it. No more, no more hands up, no more questions in the chat.

Oh, I know what I was going to say. Viv, I know you're online, but for those of you who have one of our amazing renovations safe cards from last November, Zolkman Garden renovation students and last the June intake, watch your mailbox in November because there is going to be a very, very exciting discount addition being added to the Renault save platform. And we'll probably have Viv say something about that next month. But yeah, watch, watch it. And yeah, watch your mailboxes. I can't wait for mine.

Yeah, me too.

Count us in. Okay, guys, well, I think that that's it for this evening and I'm hand back to you, John, the screen. But you know, essentially it's been a great, awesome month. Sorry for the delay and I really appreciate your questions. I hope you get a lot of value out of this. We'd love to hear from you if you do get the value out of this because otherwise we're just chatting to ourselves. And make sure that you do contact us and leave the details or the questions that you have on 130076119 or leave your questions@questionsourpropertysuccess.com and remember, Diana and Edge are there to help out with any of your support questions as well. So if you have any issues. Supportersuccess.com au we're here to help. We're here to help you over the challenges. That's what these calls are all about. So we really wanted to encourage you to participate. And if you can't make the call live, then please send your questions through. So once again, it's so great having you as part of the community. Our community is just growing and growing and we just love sharing success stories like Lorraine and so many of our students that are just kicking goals. So thank you for your contributions and as always, here is to your property success.

So yeah, it.