Your Property Success Q&A Call - December 2014 18 12 2014

The broadcast is now starting. All attendees are in listen only mode. Hello, it's Dane Slacksmith here and welcome to the youe Property Success Question and Answer call for December. Just a little bit early this year because, well, this month, because the last Thursday of December is Christmas Day. So this call is exclusively for my mentoring students. That's the students of the Ultimate Guide to Renovation and my Investors Choice Mortgages diamond clients. So if this is the first time on the call, a very, very war welcome to you. I would love first of all to hear from some of you and make sure that I'm coming across loud and strong and you can hear me. So say hi to Jane. So we'll progress. Now I'm just showing, showing John, who's sitting here next to me that we've, we've got the webinar up and going. I'm hearing from Carol and a few others that you can hear me. So that is great. Now guys, these calls are generally on the last Thursday of every month at 8pm so you've got lots to look forward to in 2015. And of course you receive email reminders when the calls are approaching so you don't miss out. So a very, very big hello to my diamond clients from Investors Choice Mortgages. Now, if you have some finance related questions this evening or lending queries, this is your chance to ask what's on your mind. Now obviously we won't be covering your personal loan questions here for privacy reasons, but broader questions about anything you need to know about building your property Portfol portfolio finance related to it. Happy to answer. And of course welcome to all the Ultimate Guide to Renovation students. This month you guys are working diligently through module 11. So we've only got one more module to go. Now this module is a huge module. This is accessing the equity, which is extremely important because it covers all the information that you need to know about growing your portfolio. So some of the things that we're covering in module 11, you know, valuations and how to actually prepare that document for the valuer. Now this month I've had a number of issues with valuers, you know, not necessarily seeing eye to eye with what we think that our properties are worth when the bank sends them out there. So we've had to do some, a lot of work around preparing documentation for the mortgage clients around what properties and comparable sales are actually on the market. Now. Now this is not an uncommon thing that you'll when the market's moving upwards because the valuers sometimes only have access to older Data maybe you know, two to three months old, which means that, you know, they, they may not be aware of a fast moving market. So you know, in that case these kind of documentation and, and the template I provide for you in module 11 is really important. Now obviously you've been through 11 modules, you spent six of those modules and learning how to find a property ripe for renovation. And you've got now to this stage and you've done the renovation. You know, we've covered off the, some really big ticket stuff this month. You guys have been through, since we've spoken to you. You know, you've been through the budget, you've been through the box at the back, excuse me, you've been through cosmetic renovations and the structural renovations, you've been through how to do your numbers. So it's been a really big month on and really renovation centric for all the modules that have been released. And this is really where the mate is. You know, getting the valuer to acknowledge that the new valuation of the property is what you want to be able to make a profit is just so key for you able to access equity and do it again. Or if you've got a flipping strategy, then you know the valuer confirming what you think the property's worth means that you've got some confidence before you go to auction or put the property on the market that you know what the property is going to deliver to you in your pocket. So as I said, Module 11 lots about that. So we also talk about how to access the equity, especially for the renovation to rent strategy, but also for the renovation to sell strategy. You know, sometimes when you're getting finance and your strategies to flip, which is buy, renovate and sell within a short period of time, you know, we run into a few lending kind of issues. You know, banks are credit scoring now quite heavily, which means they're looking at all the credit inquiries on your credit file. Now you can go to mycreditfile.com and get a free credit file sent to you or you can pay for one that comes straight away or the free ones in the mail. And you know, when you. Basically what that does is it gives you, I guess, an idea of how the bank is seeing you now come January it's going to a positive reporting structure which means that what banks are going to see is not just your loans that you applied for, but the current loan limits and your monthly repayments. Now on one hand this is kind of good because if you have had a bit of a mishap in the past five years that will stay on your credit file. And in the past if you see a default or an issue in a credit file, banks pretty much give you the dun dun, it's all over. But now with the positive reporting you can show that in the last three years, for instance, you've made repayments on time and your credit behavior is one that banks may want to lend to. But on the other hand you're also getting the opportunity for the banks to see a whole lot more of your information. So you know, it's really important that you keep that credit file clean. And if you've got many multiple hits of accessing finance, and this is especially true usually in a flipping strategy, then it can create some issues. So you know, I cover off in this module some of the strategies that you might want to look at that allows you to, you know, keep, keep your credit file clean. So we also talk about how to build long term wealth through leveraging and compound growth. I go through line of credit as a product, a lending product and how you can utilise that. You know how to build a property portfolio. Why cross collateralization may be okay for someone who's just starting out and going to buy one property, but how it can actually really affect you if you want to build a large property portfolio going forward, how you select a real estate agent, how you market your property. Now this is important obviously for those who are renovating to sell and how to prepare your property for the open for inspections. So you know, it's really important that we cover off all of these things in this module. It's, it's an exciting I guess time and we're about to go to module 4 12. So now without further ado, let's have a look at where we're up to now. So I'm sure that you guys probably have a lot of questions from some of the previous modules that we've included in the renovation modules and I'm here to answer your questions. And as always I have the co creator of the Ultimate Guide to Renovation, John with me. So. Hello John.

Hey Jane. Hey everyone.

So John, it's been a huge month for me. What have you been up to?

Probably for the most part it's hard to think back a month, isn't it?

Yes.

Yeah, but the thing that strings to mind is the new upgrades for the Ultimate Guide to Renovation. So in particular the stuff around the suburb selection modules and suburb due diligence modules. So we've got a few new surprises coming there for the the next launch. But you Guys are going to get it before that of course because we need to make sure it's working apart from anything else. So you're looking probably February there but there's some pretty exciting stuff coming in there. Do you want to reveal some of that?

Oh, I don't know. We should. It's kind of like an early Christmas present. But I have to say that a couple of people I've shown your amazing spreadsheets we've been working in the pre populated ones of have pretty much said oh my gosh, you know, you could charge thousands for this. Like no, no, we're giving it away.

It's part of the course. Yeah. So. Well, yeah, so that's probably the. One of the biggest ones is the module 2 suburb selection exercise where you have to go and retrieve all the data and fill out those spreadsheets. We're now going to be giving you those spreadsheets pre populated so and pulling and adding a lot more data into them. So we've made some deals and got some data and. And yeah, it's very, I mean I'm just loving playing with it. It's amazing.

I know. I just, I go into, I mean I think someone posted on the renovator network a Christmas present which is a mug that said I love spreadsheets.

Yeah.

Like well that's on my Christmas list. But just being able to go in and say what's your criteria? You know, I'll buy a property in a house, $600,000 with a capital growth of 7% and a yield of this and in, in Melbourne and up for Melbourne comes all the houses that actually fit that profile. And then not only that, you know, you can go to your dot map, you can then click on your dot map and the info and say, you know, this is verified through my dot map exercise.

You can bring up all the surrounding suburbs automatically. So it'll bring up all the surrounding suburbs. So it really tailors in with that top map exercise. And so yeah, and things like you can you know, sort your criteria by sales volume and stuff like that.

So it pre populates things like number of properties in the suburb, the media price.

Yep.

The yield, the rent. Oh my God.

It's going to save a lot of work.

However, you know we do like you guys doing. I can, I can hear people going ballistic at the moment on the other end of the line. I can. Yeah, everyone's sitting there, I can see the little messages coming up going wow, that's great. This is fantastic. This is going to save me weeks and you know, we are listening to you guys. We know what works involved to make this happen and we, we want to, you know, make you as successful as possible, you know, and if, if we're going to have to do some of that, that work, but show you how to do it so you can replicate, then we're all in.

Yeah, absolutely.

So there's some other things coming to John, so.

Yeah, well, you'll see some new videos just popping in there and mostly in the new year, probably in February, more than likely, and some new software as well for Montana.

Secret. Can't tell them about that. There's a big, big secret.

Yeah, so we've cut some deals there too. So, yeah, heaps of stuff coming, a few more surprises and it's going to be all good.

I think also that we've got, we've got people who, you know, just mentioning the new videos or, you know, refining some of the processes, etc. Which we've used very successfully. But you know, we want to make these things easier for you guys. We've got people who went through the November intake and the March intake of 2014 that are now going back to those modules and starting again for their second properties.

Yeah. Which kind of often happens. So don't feel bad if you haven't got through them. They're pretty hard going, particularly 2 and 3. So it's not unusual for people to go through the course and then go back and do them again.

And we know people, when they come into the course, some very eager beavers. I know you do this, John, when you purchase a course, is that you go in and listen to all of the audios for all the Q and A calls. Even though you're not going to get up to that stage, you're pretty much prepared. So we know people go back and you guys have lifetime access to it. The diamond members, we're talking about the ultimate guide to renovation. And you guys have access to the your property success course, which is that five course 30 module pack that has a greater kind of overview of total strategy rather than just renovation. But you know, a lot of the material that we're talking about will be upgrading in that as well. So. So you'll see that in 2015, which will be really exciting. So these dot map is not going to sound so foreign to you. So. Well, look, I've been up to a lot. Let me tell you what I've been doing.

Tell us what you've been doing, Jo.

I'm glad you asked. Look, I've got. Oh, gosh, it's been a huge month. I've done some really interesting interviews this month. One for Everyday Property podcast. So it's the number one iTunes podcast in Australia with Karen Young, who's also.

In the Renovator network.

Yeah, she is about to have her 100th episode, so it's a big deal and she's grabbing some key points from pretty much everyone who's been on in the last couple of years. So it was really great having a chat to her and sharing a couple of minutes of I guess the biggest kind of five takeaways that I would apply to property investing. Had a chat to Kevin Turner from Real Estate Talks and his radio show over the Christmas New Year period. He's putting on some top tips from top educators so you can go there and listen to those. But he wanted to know what learnings from 2014 that I would take into 2015. And those of you that received my your property success toolbox today probably saw a bit of this already, but for me it was all about action. So, you know, we had a number of people obviously from the March intake to their dot maps, and one person in particular came up with this fabulous area that they really felt was going to take off in Sydney and you know, due to life kind of catching up and everything else happening, she's went to her first auction last week, so that was November 2014. And the prices have moved so substantially since when she started looking at it that it's. The pricing disparity between renovated and unrenovated is no longer there. And so. And the prices have gone up 50 grand. So it's kind of 50 grand of missed opportunity.

Yeah.

So, you know, you guys, by doing these dot maps and this analysis are really, you know, you're on the pointy end of where things are happening, so action is important. And then we had Russell, obviously he was on the front page of API magazine last month and what a tremendous story for us. Or 25 years of worrying about maybe putting his hard earned money into property. And he's done his first renault and what, 14 days? How many days? What $8,000 he made 16 days and 70 grand. Yeah, fabulous story. So he's, he's looking for his second one.

Yeah, yeah, it's hard to kind of keep him.

So that was pretty exciting. And today actually I've just done a webinar with the famous Medine Simmons who invented the dot map technique. And we acknowledge her and she, she really walked us through how she came up with it 15 years, how she uses it and you know what, what highlights it's done for her. She's ended up buying nine properties. She sold a few down recently and bought the ideal home that she settles on tomorrow. So, you know, it kind of shows you what's possible using the techniques. So that's pretty exciting. On the home front, the then we've got some new team members. Investors Choice Mortgages has welcomed David Sharp and Lisa Butler which has been great and great, very experienced brokers to the team, which is fantastic. And also on that front we've Diana and Christie who many of you probably have spoken to or CV in support have kept the home fires going whilst we've been really, really busy. It's been an amazing month. There's so many people out there buying properties in a lot of Brisbane and Sydney and a few in Melbourne is where we're seeing not a lot of activity in Adelaide or Northern Territory. A couple in Perth and nothing in Canberra or Hobart or Tassie at the moment. But I've been finding a few valuations as I mentioned earlier, and one particular credit assessor's decision kind of flawed us which was a person purchasing her first home having had an investment property and they decided that she was too exposed to the property market and rental reliant and this is someone a very good income. So I've got a question coming up a bit later from Con regarding some of the, you know, changes, the macro prudential kind of changes that people commenting on in the media at the moment. But that's been the first real example of. Of credit assessors saying, you know, it's, it's a little, little heavy on rental reliance.

Do you think there's more of that to come? Is this.

Yeah, yeah, I think. Yeah, Let me cover that later when I ask a cons question. John. So I'm not sure if we've got the pretty slide of our newest renovator yet or we. No, there's us not yet. We're going to go on to. I'm going to give you some of the technical things first and we'll go on to that. Hey, so look, you know, this is the technical boring stuff. I'm going to cover off really quickly so I can get to your questions, which is, you know, just before I open the line to take your questions, we probably need to get this housekeeping out of the way otherwise it could all fall over. Firstly, if you're on your computer and experiencing any problems hearing us, please put it in the chat line because, you know, there might be something on our End or there might be something on your end that we need to be aware of. I hate sitting here talking to myself but you know, the recording will be up in the member section tomorrow just in case something does happen. Technically there is a telephone number that can be found in the sidebar under the audio options drop down menu and you can call that number from a landline or mobile or Skype. So you know, just be aware that that's there for you. When you have a question, all you need to do is raise your hand by pressing the little hand icon. Now we've got an image here, but I think on different computers it's a bit different, isn't it John?

Possibly, yeah.

So where you see a hand, click it so we know you've got a question. Otherwise if you can't find the hand, put the fact you've got a question in the chat line so that in the chat section and we will see you there. The hand usually lives directly above the audio tab at very top of the Goto webinar control panel. Click on the hand that lets me know you've got a question. And when I unmute your line to take your question, you'll get an automated message that says that your line's been unmuted so you know that you're then on. So get ready with your microphone guys, if you've got a question, look, you can also ask some questions by writing your question in the question box at the bottom of the control panel and I'll get to those. I do like chatting to people because I can really, I guess find out what you're after and you know, give you some real time answers rather than, you know, listening to or reading, reading your statements and making some assumptions. So it's more engaging for everyone if we can hear you. And yeah, so just remember there's no silly questions. I encourage everyone to, you know, ask a question, be it anything like, you know, what's happening to fixed rates or okay, probably don't want to cover what we're doing for Christmas but you know what's going on in the market where we're seeing people buying, how to get to certain websites, you know, you name it. Guys, we're here to answer the question. Make your journey to property success as easy as possible. These calls do go for about an hour and a half however, if you know there's no questions and we'll pack up and go home. So keep the questions coming. I do have some things to show you a bit later on, which is some interesting information and Resources. But look, if you. So if you do have a question, you know, put your hand up, limit yourself to one question and maybe a quick follow up. But that doesn't mean that you can't come back and ask more questions and more questions. So, you know, we're here to answer your questions, concerns, queries and, you know, get you over the line if you're having a bit of a hurdle later on the call. You know, I, you know, I welcome you pretty much. We're not going to open up the mic, but if you've got something that you want to say, you know, we're here to listen. Finally, let's get tech support out of the way. That's me today trying to do a tech support in my office. Just remember, this is not a support call. I am not an experienced person who can assist you with this. So I'm sorry, if you do have a technical issue, we're going to have to refer you to support supportourproperty success.com and try to fix that up. I assume that everyone can still hear us. We've got lots of people online, so I'm really keen to dive straight into it. But this month we have had some pretty, you know, exciting stuff as well, haven't we, John? Oh, and what's that? We have a new member to our team. So we would like to welcome and congratulate Lou on her little baby, Gabrielle. So Lou's member of the Ultimate Guide to Renovation. She posted this picture yesterday and Network.

Yeah, and Lou's been a huge help to the Ultimate Guide to Renovation from the very start, actually. She was a beta tester. She was responsible for all of the, the graphic design on the workbooks and all that kind of stuff. Yeah. Exercises and all that kind of stuff. So she's been a great helper and supporter of the course. So big congratulations, Lou.

Yeah, we're really excited. We've got a bit of a, you know, query going on the Renovator private Facebook page asking people what we should do. We've got a few little baby hard hats, but, you know, we might have to come up with something special. Yeah. So what else have we been doing? I've been chatting to one of my VIP clients and doing some dot maps. So this is. Well, this is me today, actually. So there you go. There is my. This. What happens when you have a seven year old son? You have dinosaur necklaces. So someone came into the office. We went through her Melbourne dot map and looked at where she was going to concentrate her analysis on.

That's a square map.

Yeah. You kind of ran out of space, so it became a number of maps merged together. But you can see there the different rings around the 5, 10, 15, 20 further out.

20 k's. Yeah.

So we went all the way out. So as I say, don't just touch. Target an area that you want to look at. Do the whole lot. And we've had that conversation with Russell. At one stage he was like, well, I knew I just wanted to go north, so I did the north area. And you kind of missed out some real opportunities to the west, didn't he?

Yeah. Yeah. So even if you're not, even if you're not, if you won't go to the other side of the city or whatever, at least you can compare apples with apples and decide how much that's worth to you. Is it worth, you know, 10 grand to travel to the other side of the city or 20 grand?

Exactly. There's money to be made. There's money to be made, isn't there? So decision to be made. So, yeah, Christy, congratulations, great session. And she actually, and I was a bit worried she'd cut up her map, but she's photocopied and made a card for me and sent it along. So now we have dot map cards. So I'm thinking maybe we put a dot map on a little T shirt and send it to Gabrielle Pilkington and say, hey, welcome to the Dottie Club. So, yeah, so being a bit huge. So that's all very exciting. So, yeah, guys, you know, I'd love to jump into your questions. John's revealing my hidden research I've just been doing for one of our people who sent in an email question. But look, put your hand up if we've got any hands up. Now, we'll take your question straight away and we'd love to hear from you guys and hear what your concerns or where you're up to or comments. Let us know. Everyone's going to be really quiet tonight, aren't they? At least we didn't run it on Christmas night. That's right.

All right, might be early night then.

Wow, this is good. Yeah. So, all right, we've got no one putting the question.

There we go. Gavin's typed in a question there. How are the mastermind groups going? Well, that's probably a question for you guys actually, because I know several are up and I know quite a few that are up and running. I'm not sure about Christmas get together going back to that are starting up again in the new year. That have finished already, but all good from what I'm hearing.

Yeah. So we just for those from the diamond members, investor choice, we introduced like five to six people in a mastermind, mini mastermind to keep you guys accountable and help the guys in the ultimate guide to Renovation as they work through their modules. And gee, it turned out to be a huge exercise to coordinate hundreds of people. Yeah, it turns out that's not so easy. No wonder people don't do this. But we really wanted to give an extra bit of support so those that have, you know, settled into their groups, some are doing Skype, some are doing meetups, some are doing Christmas parties. We're hearing some really great feedback and yeah, it's all good.

Stacy's got a question.

Stacy, have you got your microphone on that? We could Arno saying hi, I've got everyone here. This is very exciting. Stacy, have you got your microphone? We're going to open up the light. No, she says, don't talk to me. That's fine.

So Stacy said, what's the best method to produce a hard copy of the dot map with.

Okay, so. Well, one of the things that we spoke to Medina about today is she actually sources her dot maps for the east coast of Australia and Western Australia and Adelaide from Melwe's. Yeah, she gets them directly from Melwe's.

They're laminated as well. Aren't they? Like the same ones that we get of the.

I don't believe you can get them eliminated.

But that's an office works.

Yeah, Joby. But we recommend a map supplier.

Map World MapWorks Works.com map works.

Just type that in and check it out for you. But. And they. They've never sold so many maps.

Yeah, they're very happy with the dot map.

Yeah, we might. We might have to have a chat to them too and get a bit of a deal going. Hey, but yeah. Mapworks.comau let them know that you're after a map to. Oh, here we go. Stacey's about to try to jump on a mic. But map to do this analysis and once your maps delivered and you know, it's pretty good idea to probably module one. First week of getting this is ordering the map so it arrives with your translucent dots. I'm really excited about actually sharing this webinar that we've got coming out a couple of weeks early January with Medine.

Yeah, she was very generous today with her time.

Absolutely. And she's done some extraordinary stuff with the dot map exercise. So we'll get that up for you guys. And we'll get it out there and go through it. But essentially the dot map is a big map that you put on the wall. You get your dots, you get your data which is the 10 year past growth and you decide on the ranges that you're using. So maybe a see through yellow dot is a, you know, 5 to 6% growth and blue dot is 7 to 8% and so on and you start dotting and basically after your eyes have gone a little blurry and you stand back and, and I have, as I said, gone through this exercise with a few VIP clients have come in for the day and, and they've said, I just don't get it. And by the end of the day they walk out and go, oh my gosh, this is just like, you know, it's like a map in actual fact, map to treasure. You can start reading it and going, you know, I can see growth following infrastructure and I can see, you know, these areas that have taken off and had sustained growth have now got, you know, neighboring areas that haven't had that growth, that there could be a flow of effect or ripple effect and you're picking the next hotspot.

So that's the talk to you.

Yeah, and our spreadsheet that's going to come out next year is going to give you all that information about the suburbs that you start highlighting. So, yeah, pretty good.

It's interesting because I was discussing that with Russell the other day because he's just done one for Melbourne and you have your, your rings around the CBD, for instance, that might be, you know, 5, 10, 15Ks, but then it's almost like you need to build corridors as well that might run along the coast or along main infrastructure roads.

Yeah, I've seen that in, I've been through the dot map exercise with people in Brisbane and Sydney and you see those major corridors like Parramatta Road for instance, you know, the kind of, you've got the, the inner city suburbs and you got the, you know, the inner west and you've got the kind of moving out in that ripple. You know, imagine a rock going into the middle of a pond and that ripple going out. But then all of a sudden you've got the spokes on the wheel as well that run ahead. And, and that's because of the infrastructure. And I know, you know, back the. One of the greatest capital growth kind of explosions between the 2001 and 2006 census was an area in South Australia called Mount Barker and that. And basically they put in a freeway that allowed it to become Commutable. So it wasn't the weekender kind of cottage. It became where people like to live in their tree change and be able to drive to work each day. So, you know, being able to kind of pick that as well. And I mean, I remember living in Sydney and they were doing the expansion of the roads over the Blue Mountains and people kept saying to me, this is amazing. You're not going to believe it, but Wentworth Field's gone up in value. I'm like, well that's, that's just because the three lane freeways hit there. I bet you Katooma's gonna go next. So it's not rocket science when you know what you're looking for. And this is what these dot maps really reveal.

So yeah, now Stacy's found a mic. Will we give her a go?

Oh, now she's talking about price pin maps. Stacey. This is why it's so much better to get on the line. Hey, Stacy, can you hear us? Hi. Yes, I can hear you. Can you hear me? Yeah, yeah. How are you? I'm good, thank you. How are you both?

Very well.

Yeah, yeah, I actually meant price pin map in the first place. It's just a bit of sleep debt talking there.

We like talking about.

Yeah, we're pretty excited. I did visit mapworks that went down to the store. They're lovely people, very accommodating and did get the maps for dot mapping. That was all great. The thing that I haven't produced very well is the price pin maps. And I'm not particularly technologically adept and I'm time poor as well. So I just was looking, wondering what everybody's best method has been for quick production for price pin maps of different areas. Gee, John, I've seen a price pin map from you that. Gosh, it was quite a few photocopies joined together, wasn't it?

The map itself, yeah, but the production of it. No, I'm not aware of a quick one. It's kind of in a way explain.

The price pin map for those.

Yeah, okay, so the price pin map is a, you get a map of just one suburb and then what you do is you get two or three years worth of sales data and you have a colored pin that represents each increment in sales data. So you might have a, a pin for six, red pin for 600 grand, an orange pins for 650, blue pin for 700 and so on up. Whatever that kind of suburb sits in. So probably would straddle the median, for instance, is what you do your ranges with. And Then you basically go and you pin three years or two years worth of sales data, depending on how fast the market's moving into all of those, onto all of those addresses on the map. And so what you end up with is this map that has clusters of prices all over the place. And so what we're looking for as renovators is that that spread of values between the unrenovated and the renovated properties. So you might be looking at a street that's, that's got 650 properties that are sitting right beside 950 and a million and 50 properties. So you know, you've got some good ability to make a profit if you, if you renovate there. So that's.

So basically you've done the dot map, you've narrowed down to maybe four or five suburbs. And this is when you get into that real, you've done the spreadsheet that says, you know, you can afford it. A, you've got, you've got a buying criteria of your buying price, you've got a capital growth criteria, you might have a rental yield criteria. If you're a flipper, you might have percentage of owner occupiers. If you're buying hold, you're looking at percentage of renters. So you go through your spreadsheet and that's when you go, okay, so let's narrow down to where we're really going to do some work.

Kind of the last thing you do because it is so labor intensive, when you say labour intensive, it takes, if you hook into it, it'll take you a couple of nights and it's kind of done and it gives you such an accurate picture of, particularly if you, if you're flipping, it's almost compulsory.

And I think also, you know, when we're talking about the, the dot map, the dot map and the price pin map, you know, they're so complimentary. And I know people get through the dot map exercise and think, oh my God, thank God that's over. And then they get the spreadsheet and they go, oh my gosh, there's more work. And then we go, hey, now you got to do the price pin map. And you know, safety, you know, your time poor. And the reality is that, you know, you kind of, kind of get through the process and go, oh my God, how can I make this easy? And we have had some people try to do it online, but you don't really get a feel for it. And you will see, you know, there's a median value in this suburb of $450,000. But the price pin map will give you an idea that in actual fact, you know, top left around, you know, the top left corner of the map might be where all the owner occupiers and they're paying 650 and there might be some areas where the price is a bit lower. And there's, as John said, there's, you know, those streets where you having, you know, the disparity within the street where you can go, well, this is where I start targeting the streets. And you can overlay that then with the census information which tells us where the owner occupies and the renters live. So, you know, as a buy and hold strategy, you want to know where the renters want to live, but you also want to have that pricing disparity. So gives you some clarity about where to buy. And I know, you know, we did this as an exercise, a live exercise with a group of people a few years ago in Granville in Sydney. And I couldn't work out in this one street why there was such a difference in pricing. And it turned out that there was a huge hill and people didn't want to walk up the hill to go to the train station.

So often the case that you find that one end of the street is where all of the pricing is. So it might be that one end of the street's got all the high prices or one side of the street in some cases and the other hasn't. And if all you knew was the spread of values off the data without pinning that geographically on the map, you would be clueless.

Look, I did this for Mount Isa once and there was definitely, and Kalgoorlie too. And, and this is only because I was kind of flying, flying there to do jobs and people saying, hey, you know, I'm on a mine site and they're going, hey, we're living here in Mount Isa. What do you reckon? And you know, it was very clear that there was some streets or sides of the street that people would buy on and others where there could be a huge differential. And it was around the fact that there might have been some low cost housing with some government supplements of where people were living next to others, so they didn't want to live near.

So Stacy, have you got children or nieces and nephews? We're paying 20, 20 cents a pin.

That's great. But mine's four and 18 months. I'm only just beginning to train them. They're just, they're watching the video, but that's about all that I can get them to do. Oh, gosh. Well, I think that, you know, I know that some people have downloaded maps from the council websites that have some of the development and zoning on them. Other people have just used the information from the census website and other people have kind of like just. Well, like you did, John, was like kind of blow up the mill ways really, wasn't it?

Yeah, I actually used the council zoning ones, but I had to stitch them. Actually. I just got into Odesk and got someone to. So I downloaded all the sections. It was probably about, you know, a dozen sections of. To make up the full suburb, just one PDF at a time, and then put a job on Odesk. And I think someone charged me maybe 15 or 25 bucks or something like that.

So odesk.com guys is a place that you can go and put up a job and freelancers and people all over the world will jump on and say, and you can say, hey, I want you to do this. I want you to build me a website. I want you to.

Yeah. And they stitch. I mean, guys that are good at that can stitch that together in kind of 10 minutes and. And it's all good to go. But it's the thing that's good to know though.

But.

Sorry, no, I was just gonna. The last thing I was gonna say there. It's. It's the actual process of pinning. I've. I've actually had the maps on the computer that all the data shown and RP data used to do that at one point. I'm not sure if they still do, but they had an equivalent to a pin map and it would show all the. And you could select how many years data or maybe it was standard two years. And I used to print them out and try and. But it just didn't have the same effect. It's the act of actually doing it. Pinning that street, as painful as it is, that cements that in your head.

And I mean, you know, that's where you. I know a lot of people get to the stage when they go, this is all too hard. I now know that I want to be in this suburb and this is where I'm going to concentrate my effort. Knowing the information that you have built up to that point and your buying criteria and what you're after and a little bit of knowledge about the differential in the area and what you need to achieve and going even to a buyer's agent and. And buyer's agents, they might charge $10,000, but, you know, we'll get you what you're after, you know, might be where some people choose to go. But the reality is that, you know, the, as John said, you know, this price pin map really gives you a real clear kind of vision of what and where to buy. So you're not taking the median for the area and assuming just because you're in the street that everyone says is this the right street that you're going to make money. It's actually, well, you might be at the wrong end of the street. So, you know, that kind of clarity I think is really. And that's what this brings and that's when you can start honing everything down and going, okay, so as soon as something comes up in this area, this is where I'm going to jump. Does that help, Stacy? Yeah, no, it's good. It's actually good too to hear John say that he was knitting PDFs together and doing all that. Because I was thinking I must have been barking up the wrong tree doing it, kind of doing it that way, thinking I'm missing something here. Technologically I'm not doing that this the most efficient way. But perhaps I'm not so far off the use of it. Doing it is good. I think I raised this on the last webinar call that Residex and things don't necessarily give you really wonderful information for the lower end of the market, say further out of the capital city. However, I've since found a few more websites that are offering good previous sold data auspices Oz house prices I think is one.

Oh good.

We wrote this down on the. Yeah. Found a few other ways to get that information. I just need to get the maps, the maps themselves and so what you've said is a little bit heartening, so thank you. Well actually Stacy, after our conversation last time, I actually went back and had a chat to John Edwards from Residex and said there's people who are frustrated on your predictions reports because they're all too expensive and people don't have, you know, 600 or million dollars to spend on a renovation. We're all kind of just starting out somewhere and Barbara Edwards sent to me yesterday as something to show you guys tonight was the Residex prediction Cheapy report. That's what I need in actual fact. You want me to run have a quick little look at that now? Yes. Okay, take your notes out. So I've got got the Melbourne and Victoria Cheapie prediction report and those people who aren't looking in Melbourne, I've got. What else do I have? I've got a few others that were sent to me so I'M going to show you my screen. So essentially this is called the Melbourne Victoria Cheapies Prediction Report. So it should be coming up now and these are the featured suburbs that.

I don't think it's actually called the Cheapies report.

No, they call it. Okay, good point John. Let me just go up to what they actually call it. Yeah, we're feeling marginalized. Okay, not the tepees report, it's called the prediction report for budget top budget. Same thing, right? That's just code for cheapy report. You know me, in actual fact I went back to Barbie and said no, you wouldn't happen to have the one for Western Australia, would you? So we'll see how, how generous their Christmas spirit is. But in actual fact I've got five reports here that I'll, I'll show you quickly but these are the things that came up. As I said, you know, we wouldn't be going, fine, let's rush out to Tarnet and buy based on the fact that, you know, everything's cheap there, you know, you'd be doing your research about, you know, properties on the market and what's available, et cetera. So this is just how those reports look. So we've got here Caroline Springs, Tinique. Let me just jump down to something that might be of interest. We've got. Anywhere here you want me to stop? Torquay units, houses, Wilmi, Portland. So you know we've got some.

So it's a mix, isn't it? The cheapy report.

Yeah, exactly. So I mean let's look St Kilda west units for instance. The kind of information that we're pulling up there is the median value of $490,000. So it just scrapes into the under 500,000. We've got a rental yield of 4.19. We've got sales count over the quarter of 15. Now this is really important because if you target an area and all of a sudden you find out that they only sell one property a year, then you know you're going to be up against everyone who wants a property. So you want to have somewhere there's a bit of a turnover. The important thing here though is to look at what the predicted growth is. So we look at the last 10 years of growth. So we've got the 533 there, three years growth, it's been a little bit less two years. Last year it kind of moved again and we've got five year growth of 7%. Now we know based on the rule of 72, 72 by 7 means that your property's gonna value every double in value in 10 years time. So you know, if you're working on a, a ten year plan to, you know, create the wealth that you're after, then you know this property's gonna be worth nearly a million dollars in 10 years time. So you know, and the eight year growth is 6%. So you know, it's kind of. Anyhow, I, I took a, I took something from you, Stacy and I tried to find something that was on a gift. Thank you very much. Give a little bit of value here. I've got a few other reports here. Australian wide under 500,000. So I didn't call it sheepies there, which is nice but you can see there, you know, act few houses have popped up. A few houses in New South Wales. Few, not as many units in New South Wales. We've got South Australia, Port Augusta. In actual fact, I shouldn't say much but I know that the John and Barb Edwards light like Port Augusta. Yeah. Obviously fits their buying criteria. Doesn't mean it fits yours. In Victoria we saw some of those Queensland. Let's just have a look.

How many in this? How many? Well, you're going to count.

No, I'm not going to count them. We'll jump to the end after we have a look at the COVID of these. But so we've got, you know, these houses in Queensland, a few units, Kingaroy, Darra, Dalby, Chinchilla. So you know these are obviously out of outer areas. We've got some Western Australia.

So is this just all the state reports combined together? Yeah, Australia wide.

Wide, yeah. So this is. And then they go through and give us some information. Let me just jump pages. Sorry guys, it's gonna look a bit weird. So this is going through and telling you, you know, the areas. So we jump into New South Wales first of all, got 83 pages. So let's jump down to page. I don't know where we're gonna go, 75 and see how many. If they're gonna give us some numbers. All the excitement, I can feel the intention on the line. No, it's, it's not gonna number them all. For us this would be units in South Australia. So units. There you go. So I don't know how many is in the report but there's about 80 pages worth. So I go maybe about 60 of them. Yeah. So but yeah guys, that's, I guess you don't always get the information. And as you said Stacy, finding some websites like the one that you've just shared with us, which was called our OZ house data. I know that on prices, I think on house prices, yeah, OZ house prices. And we've got Suburb View has some good historical information. So, you know, there's a few places that you can go to. But yeah, it's always, always keen. What's Julie say here? Is this our Christmas present? There's secret properties. Yes, I know. It's all good, isn't it? So we might, if we get some time later, I'll show you some of those other reports that Barb very kindly sent through. And remember, if you. If you are interested in Residex reports, as a client of ours, you get a 10% discount and just email or ring Barb Edwards directly at Residex and she'll organize that for you. Just don't buy it online and you'll get your discount. So all good, Vicki says Jane, what's the rule of 72? Vicki? Very, very good question. So we might. Vicki, do you want to jump on the microphone, which was just down there? Got all these hundreds of people here. Vicki. Oh, let's hope. Hey, Vicki, hope you got a microphone. How are you? Can you hear me? Yeah, we got you. Yep, we got you. Vicki, how are you? Good. You can hear me? Yes, I'm good, thanks. I've got a really patchy reception here. Yeah. So I heard you mention something about the rule of 72. I'm not quite sure if I heard that correctly. Could you explain that for me? Yeah, good question. Look, the rule of 72, it's one of those. I'm going to throw it out and just say it's those mythical kind of things that you kind of just the.

8020 principle and all that kind of stuff. Yeah.

So the rule of 72 essentially is a formula that allows you to work out what the effect of capital growth is going to be on property values or any value in particular. So what you do is, if you're looking at a property or an area that says, you know, that the capital growth prediction is 7%, then basically you divide the 72 by the 7% and it comes up with around about 10. So it means that your value of your property, asset, whatever, will double in value in 10 years time. So obviously I'm going to quickly pull out my calculator. Now, if you had a area that was going up by 9%, then 72. Oh, no, this is my silly little calculator. So all I'm doing is 72 divided by nine. John's trying to make me show you my calculator technology at its worst here. So 72, you know, divided by nine comes up with. It takes eight years for you to get the property doubling value. So we're talking, you know, round numbers. A $500,000 property, if you've got it going up in value by 7% per year capital growth, then in 10 years it'll be worth a million dollars. If it goes up by 9%, then in eight years it'll be worth a million dollars. If it goes up by, you know, if the predicted growth is 10% per annum, 72 divided by 10, it will double in value in 7.2 years. If the predicted growth is, you know, 5%, then it was going to take you 14.4 years for the property to double in value. So, you know, we really spend a lot of time, you know, the guys, the diamond members, you know, the, your property success, that first module about goal setting and ultimate guide to renovation guys, you know, we spend a lot of time on goal setting too. And we talk about what do you want to achieve? And it's not the, you know, I want five properties or 10 properties. It's, you know, I would like a passive income of 50 grand, 100 grand, 25 grand, $200,000 in 10, 15 years time. Now you then need to work out what your portfolio in 10 to 15 years time is going to look like. So in 10 years time, if your portfolio, you know, needs to be $4 million so that when you, you pay off the capital gains tax and your selling costs and your loans, you can put a million dollars in the bank and at 5% that gives you, you know, $50,000 passive income. If that's what you're after, then, you know, you've got 10 years. So if you're looking for a $4 million property portfolio in 10 years, then that would equate to $2 million worth of property now going up in value by 7% or $2 million or maybe $1.5 million of property going up by, you know, 10%. So, so it kind of gives you some clarity about what kind of capital growth that you're after. And we talked a bit about, you know, when you get down that analysis of finding the suburb that you're after, then one of your criteria will be, well, in actual fact, I'm not willing to wait 20 years for my property to double in value. Therefore, you know, I don't want to have a, you know, 2% growth prediction. So those reports that I just showed you, where we pulled up, what was St Kilda west, where they had a 7% capital growth prediction over five years and 6% over eight years. Then you know, you're looking at doubling your value, your property value and maybe you know, 11 or 12 years. So it kind of allows you to fit into. Well, I've got a 15 year plan that works with that prediction. Now are all the predictions correct? Well, Residex are the only ones who really do predictions and publicize them and sell them. But you know, they've got a good track record and sometimes you kind of have to go with what the expertise have done all their analysis on, speaking to the councils and the infrastructure and their analysis. But that's why you don't just accept this stuff. And this is why, you know, you go through your criteria of also doing your research on, you know, understanding what infrastructure that's coming yourself and understanding what the demographic is and you know, reducing your risk by doing the price pin map and knowing what streets to buy in. So, you know, it's one of those tools in the toolbox, isn't it?

Yeah, that's right. And there's, there's like the price pin map. There's a whole other little things in there that you can accelerate the growth by buying in the right spot in the right suburb and all those other things buying under market.

But yeah. So Vicki, Rule of 72, does that kind of give you a little bit more heads up on what that is?

Yes, that's great.

Thanks. I'm just wondering too, does the same rule apply to rental yield? Oh, interesting question. Rental yields would normally go up by CPI rather than growth. You don't usually have a growth on an income, it's more of a growth on an asset. So the answer I would say generalizing without thinking too much is no, it doesn't. Okay, thank you. Okay. All the best, Vicki. Good.

If it did.

Yeah, thank you. See ya. Oh, right, we have some more questions and. Okay, guys, are you having trouble with our sound or are we okay?

No, I don't think so, Cornelius.

Maybe it's just.

Carol, can I get a blueprint for a box at the back at my home? So you should have that or as much as a blueprint as we have you've got in module nine. So the. Which is basically the elevations and the floor plan and that would be enough for instance, I mean you need to modify it. But you could, yeah, you could take that to your architect. But it's. That's essentially in that case what I took to council to get building permit.

Do you want to ask Cornelius if he wants to chat directly because he might just be saying, can we apply it to my home? Rather than, can I get.

Can I get a blueprint? Okay, have a look. You there, Cornelius.

Hello. No microphone, checking audio. Okay. So, because I know in one of our marching takes, we had someone who said, this is fabulous. I was going to do a renovation on my home. And the architect just came back at 250,000. He was in Sydney or something, some huge amount of money. And now I can see I can do this. This, you know, quite. This technique for, you know, a lot less than that. And. And there was a lot of excitement going on on the call. And so look up that previous Q and A call. But in the end, we really challenged him on whether he was over capitalizing on his own home. And it turned out there was no pricing disparity A at 250,000, it was really going to lose some money. And even adding, you know, at a $150,000, it wasn't going to be a good option.

So you can't just do it because it's a cool trip.

Yeah, yeah. Cool trick. Got a back box, the back boy print and going to put it on. So it has to be, you know, fit the. Fit the profile of the market and the requirement of the area. And the house. Yeah, and the house. Yeah. To tie. So. So, Cornelius, if your question is, can I have a blueprint? Yes. It's in the bonus section of that module. And if the question is, can I put it on back my home, then the answer would be yes. If your home suits you, probably speak to architect or draftsman to get it customised to fit your property. But remember that your home is probably one of your biggest assets and that you should be treating it as an investment as well. So, you know, if it's where you're going to be forever and you're willing to, you know, over capitalize, then potentially it could work. But if it fits the demographic and the profile for the suburb and the property itself, then it could be a great solution to create a living space that's enjoyable, but also go ahead and actually create some equity that you could then pull out and use for as an investment.

Let's see, Kevin's off to an auction on Saturday, hoping to purchase his first Renault Flip.

Fabulous. Wow, that's brave. Week before Christmas auction for the seller.

Yeah.

For Gavin, it's a great opportunity.

Well, we actually should mention before we go to the second part of Gavin's question is it's a great time to negotiate at this time of year, because if you, if you're a seller, and I've been in this position before, as a seller, you're pretty receptive to offers because if you've got to wait until the market kicks on again in February, it's. It's pretty bleak because all the buyers are going to go away for Christmas and so it's a good time. You kind of got them over a barrel, really. So negotiate hard. Coming up to Christmas would be my advice.

Here we go. Gavin said the agents phoned me three times to check that I'm coming to auction. Gavin, have you got a microphone? We might just try to open up your line so you can tell us your question. Hi, Gavin.

G' day, guys.

Hey, Gavin. Hello.

Hey. Season's greetings.

Hello all. Hello all out there in cyberland world.

What was your question? You had a question about sorting comparable properties?

Yeah, one of the things that I was trying to sort out, like the house next door to the one that I'm purchasing, which is in very similar condition, sold eight years ago. So you go, okay, so I spoke to a friend to kind of get some advice on this about how do you go about comparing properties that were sold eight years ago with a property that was sold today? I've been to auctions down the road and I saw a property sell for 600 which was very similar. Well, actually it was finished. It was in a lot better condition. It was kind of the sell price, not the buy price. But the house next to it was quite clearly a buy price module, but it's only recording was from a sale eight years ago. And my friend suggested that you look at the median of the house of the median of houses at that time and then compare it. So let's say the house sold for 480,000 in 2008 and the median was 480,000, in which case it would be the median price at that time. Then you can compare it 2014, where the median price is now let's say $670. Then clearly the house next door comparatively is worth around 670. I'm just wondering if that's something that you concur with or whether there are other ways that you would go about that.

Well, whilst we're chatting, why don't you just type in the address for me because I don't want to reveal your big secret. Fine. So everyone can go to the auction on Saturday. But what I'll do is I'll purchase a property report from Residex right now so we can have a look at that live without hopefully Revealing the address so we can see what they say. But what your friends talking about, Gavin, is kind of that resi spread is what we've actually purchased from Residex in the past, which goes through and it creates an index against the median price. So it basically applies a statistical filter that says so based on the median or the property price. Now, what has been the growth for 5, 10, 15, 20 years past? And essentially what your friend is saying is what statistically you can actually purchase that information. It's called a RESI spread, but it's over.

But what they're talking about is over a whole group of properties rather than just one to one. So it would be a whole lot more unreliable just doing that on one property.

Yeah, and the problem is, and I find this with when I purchased these Residex reports for clients generating this one now, is that it often comes up with, you know, you're purchasing a property and it might say it's worth 450, where in actual fact, you know, what Residex does is they look at all the past sale data and they'll look at the past sale data for that property in particular, and then they will apply, you know, the growth that the suburbs have experienced and then they'll look at other three bedroom, two bathroom houses in the area and what they've recently sold for and they'll do their statistical analysis and say, you know, we now think this property's worth X. The reality is since that property last sold, it could have been renovated, it could have been knocked down and being developed, you know, so it really is, you know, expecting it's manipulating the data, assuming that the property hasn't changed since it was last sold. Because Residex uses only properties that have been sold prior, they don't use any new properties. So I've just.

A renovation on one of my properties in Wyatt in South Australia and I look at the prediction because I have a license for real Estate investor. And so APM through there and it kind of gives the predicted price, which I really think is quite dodgy, but it doesn't take into account the fact that I just went, well, hang on, I just did a massive renovation on this property and the computer land doesn't know that, so nothing beats being on the ground.

Is there many other comparable sales around there, even if they're not exactly the same house heaps?

I've actually opened up an Excel spreadsheet and what I do is I, I go through either through Real Estate Investor, through the APM search module and have a look at the sales recently around there, I also go into the sold stats of maybe the next five to ten houses either side or behind it, and then pick photos and put it all into an Excel spreadsheet and have a look at it.

And then have you got a marking system then of saying whether it's better, comparable, better, worse?

My system doesn't state better or worse. It just states, I might say old house, 80s styling, clean garden. And I give the streets a rating from 1 to 4. If it's like the maroon to highway, it would be a one, and if it was a little cul de sac, it would be a four. So that gives me a rough gauge of the street comparative. And because I'm just concentrating on one little pocket, I have to say that when you first hear that you should only focus on three suburbs of entities, that's not very much. I've only chosen like one small pocket of one area because I go anything over that I just can't deal with at this point in time. And I guess as I understand that pocket, I can then branch off into other pockets. It really is. I just really want to be comfortable about one little square area of land and just know those streets and go to those auctions regularly and just pop in and say hi to the agents. And when you're flipping, I think you've got to do that.

I think absolutely.

But once again, I'm part of the mastermind group over here. And it's just one of my fellow colleagues came and had a look at the house with me and we, we went through it, which was fantastic. So I really look forward to kind of working those relationships and learning from each other and helping each other out when we can. I personally, I still struggle with Facebook. I logged on through my partner's. I logged on through my partner's Facebook account, but I haven't been back. My sister, my partner, she forwards all the. Every day, she forwards me all these people messages so I can see what's going on and go, I wish I could answer that. It's not my friend.

Fair enough.

My husband uses my Facebook page too, to go and see what's going on. So. Well, look, I don't want to reveal the address, so I'm not going to show my screen, but I'm going to email it to you. I'll get going for you to send me your email in the chat box, the report. But just generally, I'm just going to summarize what, what the Residex report says. It basically says it's a three bedroom, one bathroom Property. I can see some of the photos taken in December 2014 with the corner bath. Is this the bright property?

Yeah, it's a great bath if you're.

A. Yeah, I can see that. Nice bath. So I'd say ripe for opportunity for renovation, this bathroom. But it's essentially saying that based on all the information it has, it's a five out of ten on the street. So if we look at, look at this property on the street, it's about average. Is that kind of feel consistent with what you.

Yeah. Oh, that's street. Yeah.

And it says that its estimate for the price is around 720. $720,000 for a house.

And there lieth the deception of data, is that technically it looks like a house. I actually gave up comparing it to houses because the average house in that area is 500 to 600 squares. A few of them skip over 700, but the majority of them are between 500 and 600, with 600 being right smack bang in the middle. There are a few what I've actually started listing them as house units because it's not a unit. Like for me a unit block is where you've got three or four units or two or three units that are all the same in one little area. A unit house or a house unit is a house that looks like it should be a freehold house, but it's been subdivided and another house at another stage has been built on next to it. So essentially you get two standalone houses which are individual and have their own character. And those properties are selling around 600 to 650 depending on their configuration and when they are done.

Well, well, it's interesting because that address that you gave me actually came up with a lot one and lot two. And the lot one and lot two prices were around 540 to 570.

Right.

So that was a lot lower, but they were still talking about the same kind of size. So I guess the important thing as you say is, you know, you can't blanket take any information. You've got to be able to apply your own knowledge to it. But it's interesting just looking at the information here. It does have some comparables of other three bedroom, one bathroom properties. And it's looked at, you know, the sale dates and a lot of them were around the June to August of this year that they're using in the last, you know, the sale dates for the properties. It's definitely saying it's kind of medium of the road for the size of the property in the street, but. And it hasn't sold since 1981. It sold for $49,000. So been tightly held deceased to stay. Yep. Okay, so it's been tight. Hence the nice corner bath. And what else can I tell you about this? That there's a. The predicted growth is not fabulous, but for a flipping strategy, you don't need fabulous growth. So what I'll do is I'll send this report so you can actually look at those comparables and, and start vetting which ones are more consistent or not. But you know, what you're, you're talking about. I mean, silly. Even as a deceased estate, you know, the fact that they're going to market four days before Christmas, you know, it's not doing anyone any, any favors for someone's estate other than the person who potentially can decide not to go down to the entrance for the holidays or wherever they head off. But, you know, it's often the opportunities, you know, when we talk about the Trident strategy and buying below the market, there's those kind of opportunities that do come up. It's, you know, the. Well, we talked to my dean today about having an agent that's an out of suburb agent. You know, they're just not aware of the suburb. They're not really interested. They're usually, you know, rushed to get from where the local area is to open up this property, and they're doing someone a favor. So they don't really know what the property's worth. And I often on the flip side, I've got friends that I've introduced to property investing and their dad has properties and his agent's really, really good. And his agent looks after their properties in Blacktown and they've bought a property in Maroubra and the agent's gonna look after it for the rental. And all of a sudden their rent's a lot below market because the agent doesn't understand the difference. He's getting a great rent compared to the, the other properties in Blacktown, but not for what's the market in Maroubra. So, you know, really understanding a bit of detail about the agent, which when you get into, you know, as you said, knowing the agent, getting into the information, understanding who they are and what they, what they're doing is really important. So, you know, I think that the research that you're doing is just, I'm sitting here punching the air, going, yes, yes, yes. This is kind of the stuff you need to be doing and you know, finding those kind of opportunities, those that potentially allow you to sweep in and get the Opportunity, but still do your data and understand that, you know, the Residex report or the RP data report or the investor report, whatever isn't reflective of what's on the ground. And getting on the ground and validating that is just so important. And you know your friend that's talking about, you know, back 10 years ago, the house next door, eight years ago, sold for this. What was the median value eight years ago? Well, you can find that out. And as I said, you know, that resi spread kind of gives you that median price for the whole suburb and you could potentially apply that.

That's interesting for a point of comparison. I personally wouldn't take it as being very accurate though.

No, you're just looking at.

That house, that very house next door, which looks very similar. Well, it looks like it's in a. It's similar in its build, but it was in a much better position. They, they renovated the kitchen and the property that I'm looking at has an unrenovated kitchen. The bathroom was a little more modern than the one that I have now, but still quite probably 80s or 90s. In 15th of August 2008 it sold for 425 and the median was 352. Bringing that into the current market, it puts it at 591,000. Now there was a house.

There was.

A house about 12 houses down the road with 40 square meters of land more, but one bedroom less in a slightly better condition than the house next door. And that sold for 600,000 two weeks ago. So I find that interesting that it's like. Well, hang on. Actually, yeah, that's not too far out. That gives me a. The renovation that I'm looking to do will smash those like the quality of those houses. And I have to say it's really.

Of that style of Renault, of the quality you're talking about. Is there examples of that in the same street?

Yes, on the same street. Yep. Probably about another 10 houses up. Don't know whether it's on the same. It's on the opposite side, but it sold for 645 in July. But it's got one extra at the.

Level you're kind of renovating too.

Yeah, but the only difference, it's got two bathrooms as opposed to the one that's got one bathroom.

So I mean, that's the only thing I would say is there's always a danger when you're looking at the comparable sales to be. And I'm guilty of this, but just to be too enthusiastic and not be comparing apples with apples. And I think there's John Edwards from Residex, always talks about trying to be selling at the 80% mark in the street. So not if you're taking your comparable sales just from the top end of the street. So the highest sales, that's pretty dangerous territory because there's a whole lot of things with any one sale that can happen. You know, all you really need is two people competing for it and up goes the price. So that's the only word of caution I'd chuck in there. But if you can see comparable sales at your renovated level, and then it's really just a case of working backwards from there and saying, right, how much is it going to cost me to renovate? What's my profit margin? And then that dictates what you need.

To buy it for Gavin, I didn't feel that the numbers you just threw out had enough for spread there. You were saying that completely renovated was 640, but you, the purchase price was. That you're considering was what the purchase.

Price of the next door is 591. But I'm talking in a buy price of under 440.

Okay.

All right.

Plenty of room.

And the 640 was the renovated a few street, a few 1012 houses.

6:40 I've got written as ultra modern renovation.

Okay.

And I've got. There was a, there was a three, two, two townhouse on the street, which obviously doesn't compare to. But just to give you an idea, if I, you know, wanted to knock it down and build something there.

Yeah.

And that was on 110, 120 square meters of land, and that sold for 730,000 in February this year.

Well, it sounds like you're going the right way about doing the valuations. And that's exactly the same way as I, as I've been going about it for years as well. And I think the more you do it, the more you refine it and you get that feedback loop when you see it sell. And it's not an exact science.

That's probably my email arriving.

That was me taking a screenshot and I'm going to send you my little Excel spreadsheets.

Oh, beautiful. I just sent you the Residex report, so you can open those up now. Merry Christmas.

I went to another open house today which auctioning an hour after the property that I've been doing all my work on and no one's done a building and pest inspection on it and the interest is quite low. And I'm like, oh dear, can I find another JV partner to buy one day.

We're going to have a JV mastermind group soon, I'm sure.

Yeah, that's where you've got to master money.

Yeah. For the world out there. I don't have any serviceability, so my only way forward is through joint ventures and through Renault flips. So I'm saying bring it on.

Yeah, fabulous. Well, Gavin, you'll be on the renovated network private Facebook page through his partner. Facebook?

No.

Well, Gavin, have a great break and all the best for Saturday. Please let us know. You're going to have to get your partner to post on the page now because we'll all be waiting bated breath to find out if you got the property options at 10. Okay, well, I now know the address. I'm going to be watching for it. Okay, all the best, Gavin. Might just see if anyone's got their hand up. But we do have some questions in the chat, which is great. Oh, we've got Helen. Helen's got. Helen's just putting that she sold a house today, improving on the valuation. Oh, Helen, I think this is a story you want to hear. Success stories. Oh, using the renovation. Oh, is she there? Let's have a merry, merry Christmas. Helen, can you hear us? Well, can we hear you, microphone, Helen? No, doesn't sound that way. Okay, so Helen says, I've just sold my house today, improving on the value I by $45,000 using my new Renault strategy, extreme decluttering. Happy Christmas. Oh, my gosh. I think that's something that everyone has to do every now and then. So tell us the decluttering. You know, did it cost too much money to do that to make the 45,000? I think we could probably up the one to eight dollar ratio one of our renovators had on the return on money.

There you go.

That's amazing.

You're going to have to add that to your P's of renovation somehow. Along with detonate.

Exactly. Detonate and declutter. I'm liking it. Okay, well, we haven't heard back from Helen, so we might just jump over to Tim and see if Tim wants to ask his question online. Tim always challenges me with his questions, so I know I've been following this subject in the Renovator Facebook page. So, Tim, can you hear us? And can we hear you more importantly.

Hey, guys, how's it going?

Hey. Good, yeah.

Basically, in a couple of areas that I've been looking at, they've got the old sort of 1980s pools, which are fiberglass or concrete and just ugly and they've left, gone to green because the tenants or whoever just haven't maintained them. And my idea was just to smash the whole thing out rather than trying to flock it and bring it back up. It's just a pain in the ass. Just be. Smash the pool out, fill it in with concrete or cave it in upon itself and put a patio out on the back. Just wondering if that's possible. And is that like a massive cost financially or is it something the boys can come in within a few days and get it up and running? I haven't filled in a pool before. I filled in some like wells and stuff like that. And I think it's a big job. Yeah, it always ends up sinking and. And sometimes when you see pools though, there's actually an opportunity to. And depending on whether they're in the area or not, they're not that hard a lot of the times if their pipes and stuff are still in good order to actually pretty up. Sometimes it's just a matter of you can actually spray a coating on the bottom section and the floor and then just tile up at the waterline kind of thing. And by building a simple, for instance, treated pine deck around them and staining it, you can, you know, for the. For under, let's say $5,000. You can make it into a real feature if that's suited to the area in the. In the demographic filling it. Yeah, there's a fair bit of work in that. All right. I mean the other option is to. To stick a suspended slab. If it was concrete, to stick a suspended slab over. Over it. Which at least that way it's not gonna. But it's still, it's. Again, it's a lot of work and it's work that's not adding any value to the property.

Yeah, I'd. Look, I'm gonna put my mining engineering hard hat on here and talk about the days on mine sites and rehabilitation and filling in holes and a lot bigger holes than a swimming pool, but with a lot bigger equipment, let me tell you. But you know, I would. Gosh, I'd have so many concerns about this, Tim. This would almost be a walk away from a property deal if it was. Either you can't fix the pool and bring it up to scratch like John said, and the only option was to cover it over because I think, you know, the. Obviously there's safety regulations now and they've been upgraded a lot around. If you do maintain the pool as a pool and those requirements, if you did need to backfill it you know, the compaction that you'd need to do and you know, the. The water that couldn't seep away, you'd have to be putting holes in the bottom of it. There'd be. And hence, I just think it could create so many problems. And I'm not even sure how builders, warranty insurance and someone, if you're thinking of flipping this property, how that could come back on you in the future. But, you know, I'm not an expert in filling in pools. I have to say I had a bit of a giggle when I saw your posting on the. On the Facebook. When someone came in and said it cost me about 120 bucks, but he was talking about filling it up with water.

Yeah. I was thinking, oh, how Good Is that 120 bucks? I was like, and you get to swim afterwards.

I know. I made my husband. We had a. The first renovation we did, there was this like, really smelly. And I could picture it, as you say, smelly green pond in the backyard. And he was out there and he was, oh my God, cleaning it up and trying to pull it out and jackhammer. And he did his back. And 10 years later, his back still bad from that jackhammer experience. And after he actually cleaned it up to some degree, and I said, oh, this would be quite nice as a pond. He nearly walked off the job, hence the jackhammer. But. And I know that was kind of like a meter and a half by a meter across, and that was a sig. It always looks like a smaller job than you expect. Backfilling something like that, compacting it with those strange kind of shapes and sizes, you know, the water retention. You're probably just creating for yourself a swamp. I'd be walk away.

Yeah, fair enough to renovate it than I would.

Yeah, absolutely.

So there's just no value in filling it. Whereas at least if you're renovating it and it's, you know, Right. For the. For the market, that's an asset. Then for the. For the house, most of the time you wouldn't go adding pools to places unless you're really high end. But if it's there already.

Yeah, good.

Well, that was the thing because, yeah, the pool's just a bloody nightmare. They're always a pain to even upkeep or whatever. But.

Yeah.

All right then. Yeah.

And, you know, the whole, you know, is a pool fit for the area? I always look out the window when I'm flying into. Into a town or an area and you fly into Sydney and you might see a pool every other suburb and you fly into Queensland, you see a whole lot more and you fly into emerald littered with them. So you know it. Once again, if. If there's a pool and it's not what the. The local. And I think you're flipping, aren't you? So it's an owner occupied market. If it's. If it's not what they're after, then, you know, it might be a walk away.

Yep, no worries. That's all good.

Okay. All the best. Seasons greetings. Oh, Helen's given us a bit more information here about her. Her strategy, her declutter strategy. She's only got 5% power, so she can't chat, but everything went into a shipping container. So a bit of elbow grease and a hiring shipping container and wow. Fabulous. I know. My mother was an interior decorator for many years out in Dubbo way and she did a Feng Choi class and. And pretty much everything started with decluttering. So you decluttered your brain when you decluttered your mind. So now I want to jump onto a question that we got from Wewin so we win. I think you might be online here. I'm gonna pull up. There you are. I'm gonna say hi to you while John pulls up your question that you emailed me earlier this week. Hi, Wee win. Can you hear me? Microphone. Hi. Yes, you can hear me. Can you talk? I've got your line unmuted. Yes. Hey, we can hear you. So I've got a question here from you. You had a bit of a supply and demand question about how to choose a good suburb and is one better 10ks within the CBD with no development or a regional city? CBD with lots of development and unlimited supply of land. Yeah. So you haven't really narrowed down, you know, if you're buying in the city or in the. In the regions. Is that right? Yeah, it's very hard to decide. Yep. Like getting distracted because the other way, like very close with the cbd and I think like with the land country, like people were looking for to live next to the CBD and the other way, like it's like a regular city cbd, but they got a lot of development. Like a lot of projects are going over there, but the things like there is unlimited supply of land and I saw that there is a lot of. I'm having a little bit of trouble hearing you, but I'm hearing that you're saying, you know, is it being close to the CBD with less scarcity, is that a better opportunity or driver of growth than being development or strategy of land. Yeah, yeah, look this is a great question actually. It's a question that we kind of reviewed today with Medine also. And one of the things that you find when you do that dot map is there's sometimes some areas that just don't have 10 years worth of statistical data because they're new development areas where there's house and land packages. And I know there's been, I mean I can talk to Melbourne, you know, I know there's been some areas that have been opened up and they talk about, you know, the western corridor of population growth and Melbourne will become the biggest capital city in Australia in the next 15, 20 years. We're going to meet you. And there is issues in buying in those areas because in theory you can just keep, the developers can just keep developing land and as we get I think more and more into affordability issues and, and the government's trying to encourage people to get into their own homes and not renting and, and they're going to make it more, more land available and they're going to make, and the only where place that this land is available is on the fringes or in regional areas. So you know, I think that, you know, looking at where there could potentially be oversupply in the future is a really great way to start considering, you know, where to buy. And I kind of, you know, mentioned one of those cheapy reports on what do we call it? Budget. Budget reports, it was tonight and I know that's been really, you know, talked about as a great growth area but there isn't that limitation of supply there. And you know, you see that growth.

When the estates open up as it always grows as the new estates come online.

And you know, I've spoken to quite a few people who were a little burnt in an area that, that's outer Melbourne called Point Cook. And you know, it really developed and it keeps developing and there's new developments and you know, as the new developments come online, you know, you might be going oh, the house, you know, down the street sold for 600. I got a real bargain because I'm getting this one for 600. Where in actual fact, you know, you're on a 500 meter square block and the other one was on 750 because they, they had bigger blocks beforehand. So you're not comparing like with like. And the problems that I've seen with some people who've had properties there and gone in a little late is that the tenants aren't loyal. So all of a sudden the brand new three to four bedroom house is available at 350 a week so they're going to move to that. So you know, you're dropping your, your rent to 300 to 270 to 250 just, just to be able to, you know, get it rented so you can, you know, not eat mints every night and you know, send the kids to school kind of with lunch stuff. So you know, I think your concerns about oversupplying the potential and that can be a function of areas and councils and towns, you know, commitment to continue to reduce release land. And we've seen with some of the big reports of the big capital cities and the future plan, future plans of the capital cities that, that, that is something that they're planning on doing which is releasing more land in the next 15 to 20 to 30 year reports that I'm reading coming out. So I think you're really on the nose and highlighting of that being an issue. And even I would have to challenge you though that when you're looking 10Ks within the CPD with no development, the reality is there is a lot of market noise going on at the moment with units being sold in the capital cities, within the city areas and they sound like a really good deal and you know, developers are throwing in lots of things and rental guarantees or whatever they are, but the reality is there's a lot of development going on and, and I think Melbourne alone there's something like 20,000 new units being built. So there's something, is an extraordinary amount. And, and just reading and the guys in the investors choice Diamond Club jump on to the reports that I've uploaded into your member area that discusses the over supply and under supply, you know, state by state of the capital cities and you can see pretty clearly that there, there are some looming issues there and there's some oversupply in some areas.

So a lot of people talking about the quality of these new units and.

So on, they're getting smaller.

Yeah. And just poorly built, you know, with airflow and all that kind of stuff.

Now I read something the other day that said that there's been some real. Gosh, what was it? Some issues where the architectural plans that have been submitted to council have been approved. Once approved they've actually ditched that architect and got some dodgy brother in to kind of make a few amendments and hence as you're saying, maybe not build up to the scratch that the original plans were actually submitted for as well. Now you do pick up on some other interesting things, how to check Whether an area has oversupply in the future is essentially getting that feel for the councils and what their feeling is for what they're doing with the development and how open they are to that, and comparing growth capital population growth rate to total residential house planning. Now, I'm going to pick up on that because you said, I'm checking Dubbo because I bought the Terry Rider report, it looks promising and I'm checking the council approval and there's many applications. So I actually did. I can't run a Mac, so I'm going to get John to click to the next screen. So I did some research for you. Now, this is, this is the problem with being parochial is that I grew up in Duo, so, you know, I apply all of my filters to the Duo kind of information that I have. And so. And it's the same thing when I came to, you know, when I moved to Sydney, I said, look, I'm really keen on Newtown. And the agent said, nah, this is where the druggies are. You don't want to buy in Newtown. And when I went to Melbourne, I said, I really like Williamstown, this is like 12 years ago. And they went, you don't want to buy in Williamstown, no one buys in Williamstown. So, you know, being an out of towner doing these statistical kind of evaluations of areas kind of takes that filter off. So this is the kind of steps that I take. First of all, I jump into the council website and see what's going on. So, you know, here I jumped into the Dubbo website, you know, gave me some information about the population. You know, the population is 42,000, it's going to be 52,000 in 20 years time. It's really a. Well, they call it the hub of the west because it supplies major services to many of the outlying towns and communities. There's some really interesting information that they had on the website regarding some of the development planning that they're doing. They were kind of more parks and hospitals and things and there's a university there. The school of the year, I think it was 22 schools and so that was interesting. So I jump onto the website, the council website now, the council websites, and I didn't find this very quickly on the Duo website today, but the council websites often actually have like a 10 year plan. And I find, you know, when I'm looking in a capital C and going to the council websites, they might say, hey, this is our five to ten year development plan. We're going to spend some money on this, on the area and Newcastle is very, very interesting at the moment. You know, they're talking about light rails to or pretty much to the beach. You know, gentrification of the area in town, you're making it, you know, more attractive to people, you know. So reading what the councils are planning and where they're going to put the money is, is a really good thing. So I'd go to the websites to start with, then I'd go and do something like, we'll just go to the next slide. Thank you, John. Something like this. So what I did is I just pulled up the Residex suburb report. So These are usually $90 and diamond members. You can just jump onto your member site and request these and we'll send them straight to you. But this gives us an idea of what's happening in Dubbo with the median value of properties over you know, the last 10 years. So what the growth has been on those years and what's happened. You can see that medium value hasn't really moved in 10 years. So we're definitely not getting, you know, the overall 7% double your property value in 10 years time. If we just move on to the next screen. This is the kind of information that it's giving me. Over the last three years it's been about 6% growth, last 10 years, about 4% growth. You know, the last quarter it's had a bit of growth, the last year it's had a bit of growth. But you know, with the yields. So we talk about the growth, the yield and then the total return which is the addition of growth plus yield. So you know, we can see that there's about a 10% total return which is not fabulous but the rental yields are very attractive to some people who are chasing a yield based investment. And then ding. Just like Tinkerbell. This is what else this report shows. It shows what the growth is going to be like in the, the next five to eight years. You can see down the bottom there. So you know, as I said, if we jump into that rule of 72 and I go 72 divided by three, which is eight, it's going to take 24 years for the properties to double in value. So if your goal is to do something in 15 years time, then don't depend on a property there to be a growth strategy for you. You'd probably be looking at a rental yield strategy which is, which is obviously reflected in that high yield. And this house sale stuff gives us some really great information about the price points where people actually buying. So although, you know, we Talked about where that median price was around the 2 to 3 hundreds. There's still a lot of properties in the 3 to 400 selling and if we just move on. I then jumped into Ripe House. So Jacob Field, who is, is the owner of Ripe House and a good friend of the Ultimate Guide to Renovation and whom we will be using some of that information for these great spreadsheets that are coming your way. I jumped onto Ripe House and I had a look at, you know, the, the sale volume. So I wanted to say, you know, the volume of properties over the last 12 months. So there's, there's been, you know, quite a few properties on the market. So as I said, you know, if there wasn't any properties on the market, I wouldn't be considering considering, you know, looking in an area because you up against everyone else and it might be hard so I might take that off my list and look somewhere else. But there's a lot of properties that have been on the market. You got to be careful of these regional areas because often they do take the data for the surrounding country farming community as well into account. So just be conscious of that. The vacancy rate very, very low, you know, so once these properties are available, available, they're entered. The yield here is a bit lower than was reported by Residex, but the yield here is for all dwellings. So we were list looking at housings, houses earlier. So this is dwelling, so houses and units. And the next slide when I pulled up, what kind of strategy that you'd consider for Dubbo, it actually came up with the flipping strategy. So the difference that they had there, over the left corner you can see the most in demand Property is a three bedroom house and about 18% of the market. Three bedroom houses and the large unrenovated properties developed compared to renovated. There's a pricing disparity of 286 to 420,000. So we could see from a growth point of view you probably wouldn't hold it. But from a flipping point of view this could be something that might be on your watch list. So if that's the case, then we win. The concerns that you have about over supply, if you're in and out of this market quickly, may not be, you know, the issues that, that you, you're really concentrating on. So I think, I think that's the last slide I had there. Oh no, here's a final slide. This is once again out of that hot spotting hotspotting ripehouse.com that's from their data that came up with you Know where the, the house prices are and the amount of stock in the current quartile, which current quarter and that's being rented and sold. I think that's it for me. There's our little picture of Gabby again. So, okay. Oh, and we've got. Tim's got a message up here saying hey, we win. Message him on Facebook. He's got a great message mate who's an agent up there who could probably give you some insight into the area. So just to cover off, once again we win. Your question, which was doing the research, is it better to concentrate on areas that potentially is not development? And the threat of oversupply doesn't necessarily mean it's regional or fringe. You could have oversupply in city areas and it's important to get on the councils and, and websites and see what kind of developments are there. You've obviously jumped on there and had a look around on the websites but you know you're on the right track where you're doing your research. So. Yeah, I hope that answers your question.

Yep, very good. No more hands up that I can see.

I've got one email question to go.

Oh good.

And seems it's like just after 9:30. I'll speed through this at a thousand miles an hour. I mean I might just get you to jump over to my screen whilst I delete Gavin's addresses. Now Con had an interesting question. So his question was about lending and finance and all things kind of happening in the media at the moment. And this macro prudential kind of, you know, the big changes in lending protocols is going to create some real angst for us as investors as there's a tightening. So you might have seen headlines like this that the property boom is going to end based on the RBA stepping in and making some macro prudential changes. Now if you pick up one paper and you read one story then you can either be of the opinion that, that this doesn't really matter or you can be of the opinion that the world's going to crash. And you know, I've been reading across this and more importantly I've been hands on, you know, writing loans for people and seeing what the assessors are doing and seeing how credit policies have been changed. So just to give you a big picture, basically there are some concerns that and we obviously haven't had the attention. Reserve bank of Australia put rates up for a very long time and there's some concerns that the property market is overheated in the last quarter. You know, there's been A significant increase of investors buying properties over first home buyers and home buyers. And this is, this has kind of sparked some concern over or if investors are buying these properties and they're pushing the property market up and people can't afford properties anymore and you know, on average investors are very highly geared. So if there's a slump in the property market, you know, the world's an end and the property's going to lose value and it's all going to come crashing down. And what we've seen in different countries in New Zealand, what's happened is the RBA of New Zealand got involved and said that the government, sorry, the banks could only have a certain percentage of their loans over a loan to value ratio of 80% which meant that the majority of people buying properties have to put a 20% deposit in. So that was a very direct link of the Reserve bank stepping in and making a macro prudential change to a lender's policy and assessments and criteria of how they purchase. We've obviously had a financial report come out by David Murray last Sunday and he's made some recommendations and I've seen some sensational headlines about that. And then I've seen some more conservative economists step in and say, well in actual fact, he's not saying that, you know, the RBA has to get in and insist that the banks make these changes, that in actual fact, you know, we're okay. And the problem is if the RBA does increase interest rates, it's going to, to slow the economy and slow the property market. But the economy, when we're coming off the back of the mining boom and is cannot really tolerate with 6% unemployment, a slowing of the market, so they could cut rates and there's a lot of economists talking about interest rates will be cut in 2016 maybe by, you know, what they said, one basis point or point, sorry, 0.25%. And the reality is that that may happen. But in fact, you know, we've got this opportunity now where we've got, you know, investors are big in the market. Their properties that their own homes have had the biggest growth that they've ever had. So they've got equity that they're pulling out and they're buying properties and they're buying at very low interest rates. And you know, we've seen people lock in, you know, 4.9%, five year fixed rates and even if the market comes down a little bit, then you know, for five years they've got that rate locked in. So they've kind of got that sleep at night factor. So you know, even if rates go up in two to three years time, they still have a bit of sorry timeframe before they would feel financial problems which would mean that they could potentially sell the properties they got in difficulty. Most people are saying that the, and the RBA in particular is saying that they don't think they'd step in and actually make any changes to the banks and, and require them to make changes. And hence I think we're probably going to have, you know, it could be a rate rise, it could be a rate reduction. It's not going to be by much though and it's not going to, you know, have people lose sleep at night in 2015. But we may actually start seeing those fixed rates start to climb, which means that there's some anticipation that in the long term rates will increase. Which you know, we know that the 20 year interest rate rate average is seven and a half percent. So you know, it kind of makes sense at some stage we'll go back to what the long term median is. Having said all of that, I am seeing banks getting really, really tight on credit assessment. So as I mentioned, you know, the credit credit scores. I had one lender the other day, home side NAB broker, NAB bank, say that they looked at someone's credit file and they had 14 inquiries in five years and their magic number was 14. So anyone who had 14 inquiries in five years automatically got a decline. And this person was at an 80% loan to value ratio, no mortgage insurance and it was an automatic decline and there was, there was no reversing out of it. And, and that was just because they, they bought a few properties and I think what dishwasher or something and had a credit card and you know, novation, lace, you know, kind of life stuff, nothing significant. And 14 was the magic number. And as I mentioned earlier in the beginning of this call this evening, a client who had an investment property and was buying a first home and the bank came back and felt that she was over reliant on her rental income. So her rental income was a significant portion as a percentage of her PAYG. So for instance, if your PAYG income was $50,000 and you also had a $30,000 rental income, they would say that that was a significant portion. Now I know the mortgage insurers do have some kind of criteria that if you know you have a $80,000 PAYG income, then you know, some of them don't like you to have more than say $50,000 of rental income versus the 80,000 PAYG. I know that Westpac doesn't want you to have more than 50% of your PAYG to be rental income. Other lenders really do not have that criteria. So what we may see is, I don't think we'll see the RBA stepping in is my summary of all this kind of rant. John, have you fallen asleep? But the RBA I don't believe is going to step in and make any significant changes and requests. But I think what we will see is, although our lenders are making huge profits and money is costing them a whole lot less, less than it has been, and their margins on the money is a whole lot more, I think that we probably will see them pull back with investors. I don't believe that we will see interest rate disparity between homeowners interest rates and investors interest rates, but I do think we will see a tightening of policy. So keep your credit scores clean, guys. You know, save your money, don't move house a lot, don't have a lot of hits on your credit file. You know, have some longevity in your job before you make an application for lending. And just a quick comment on that. The fact that the banks are buying money a lot cheaper and passing it on the interest rates that are advertised, we consistently are getting, you know, 1 to 1.2% below the standard variable rate for our clients by going in and batting for them and using our reputation to try to negotiate better rates. So maybe a call on Monday, it could be a quick little Christmas gift for you to ring up your bank and say, hey, I hear that CBA is offering 4.9% for, you know, loans over $500,000 and you might just get yourself a little bit of extra money for Christmas. So that's my answer to Con's question on macro potential. Will it end the property boom? I don't believe so. I think that we may see some, some credit assessing pullback, but it's all going to be, all going to be fairer and long running and have a, a good legitimate base of property in Australia. There's definitely no boom, there's definitely no bubble. And you read the commentators and they're talking about the fact that, you know, we have an income level that allows us to have the sustained kind of property prices that we have.

So, so, and I guess you, I mean, I've heard you say it loads of times that you just bought when you had the money. You didn't really buy into what the media was saying or what the latest Fed was or whatever.

Yeah, time in the market, not timing the market.

Yeah.

And I mean as I probably shared previously, I spoke to a lady back in 2006 who was worried about purchasing a house in Sydney for $400,000. And I spoke to her again this year and she's now worried about buying a property because they're 650 or $800,000 and she's missed the market and she's still waiting and still worried and you know she would have had an extra $400,000 potentially in wealth if she'd acted in board in the right area and done their work and do the research.

Yep. You lose every game you don't play.

I think we need to wrap.

Very good.

It's Christmas, you know. Can't even give people an early Christmas Christmas gift. I did say that I would. Oh, am I still on here, John? I would show some extra reports and information and here's some for Brisbane houses whilst we're looking at them. There's a lot in Brisbane and Queensland but just to give you some idea of some names that, that are on the screen, probably have Gavin up there with his click click camera taking photos.

What are we looking at there? We're looking at the top predicted, predicted.

Growth for Brisbane and Queensland. So if we look at houses and units here, there's quite a few. We go to the top houses, you know, 8, 9% growth. So if I pull up my trusty little calculator and say 72 divided, divided by nine means that you double your money. $584,000 the median price, double that in 10 years. So. Oh wow, do you see that? That was a little bit extravagant. $584,000. So I'm taking that median price and timesing it by 2. So we're looking at you know, $1.1 million property in Heathwood that it was experiencing 9% growth in 10 years time it would be worth that. So 4 1/2% rental yield quite decent. We look at Morrowfield, you know 10% growth and 9% growth, median value 318 and a really good rental yield. So you know there's, there's opportunities out there. Where else do I have. I don't know if I showed Sydney before some opportunities in Sydney as well these reports. As I said, you ring Barbara Edwardsidex or email her and she will give you a 10% discount. But there's really a lot of reading in here and as you can see I've jumped through to page 30 of 60. There's 30 pages previous that talk about what's happening in the market and how to anticipate and how they. They go through and come up with a scoring system and all this other information. So, you know, really, really valuable stuff. Here's the best rent report. So, you know, they've got some really great reports on there. As I said, there's one tool in the toolbox and you know, there's some opportunities for you, for us to use this. And we're using some of this information in our spreadsheets that are coming out for the. The Ultimate Guide to Renovation People early in the New year. Well, maybe by February. Still working on them. So. So yeah, so this is just giving you an idea, guys, of some, some good rental returns and I'll just jump straight down to a couple of them so that you can actually look at what they are. Gosh, thank you guys for staying on the line so long. I can see that we've got quite a few people still here. Let me jump to maybe change page 15, see what we've got coming up. So what have we got here? 5.8% rental score. We're looking at Darwin Gun Houses.

So what's the score based on?

So you'll have to read the report for that. Canberra Houses. So it's got some really good information about, you know, what's happening in the area as well. Description of the area, facilities, industry, population, what's happening in the housing, you know, why, why you might be looking in these areas. So Aubry, actually I did a webinar with Terry Rider and we talked about one of the suburbs in Albury for houses guys in the diamond membership. You can jump in and listen to that webinar. But yeah, so that's some of the reports I know. Merry Christmas.

Merry Christmas.

So thank you guys. Next. Well, I guess we've not only run out of time, we run over time and we appreciate your. You hanging around. There's so many of you still there and I really, you know, thank you for your lovely messages that I see coming through and yes, we will have a great break, won't we? Well, a little bit of a break. We've got so many things that are happening. Oh gosh, we're making so many big plans, aren't we, John, for 2015.

Yep. Everything's going to be improved bigger and better.

Yes. So, you know, and as I said, we just want to keep having successful students and that's why we handhold you through. And congratulations to you guys. Can Christmas Day you're going to get from the ultimate guide to renovation students module 12 and the last module in the course. Yes and I look you know you've got access to all this stuff and you can go back as many times as you want and I really encourage the diamond members investors choice to jump into your property success course and maybe revisit the goal section for New Year and make some real plans for what you're going to do. And as I said in the toolbox for me it is all about taking action. 2015 is about taking action and it might be just taking action and saving a bit of money. It might be taking action of buying a property it might be taking action of setting your goals, doing a research, just getting through a dot map and a price pin map, you know but take some action and do something and yeah we'll be here for you last Thursday of January and 8 o' clock and if you need to send some questions through please do. And yeah we're wishing you all the best.

See you next time.

Bye guys.