Canstar asked 5 experts, including me, to share how we got on the property ladder and share what we learned from our experiences Here’s what we had...
The speedy recap is, what did I learn from being an explosives engineer that helped me build a multimillion dollar property portfolio, and help thousands of people over the last 15 years, do the same throughout Australia?
Well, I looked at risk. I started with my trident strategy, three ways to make money with any property.
First, in starting the suburb, and understanding what the capital growth potential is in this suburb. Then, I looked at the property itself, and looked at renovation potential, so that is my super sizer in the five step framework of financial success. And then, I looked at the property itself, and looked at how I can negotiate money.
So, three ways of making money, buy below the market, or buy and negotiate so I can make money straight away. Renovate to add value, and making at least $2 for every $1 I want to spend.
Also looking at growth, so in the long term, I have the capital growth working for me. And that’s the three ways that I make money.
Now, how do I minimise my risk? After all, I was an explosives engineer, and I wanted to make sure that it wasn’t a risky decision. So, I only had $45,000 when I started. So, what did I do? I looked at the risks, and I tried to minimise them. How can I have the typical property, and know where the typical property is that most people want to rent, or when I want to come and sell it, sell to them. And the typical property you can find out using census data.
Census is going to tell you what the typical number of bedrooms are, and what the typical type of property is. Now, as you know in the first house buyer group, and in my philosophy, I’m always buying houses, I’m buying established houses. So, I’m not buying new properties, and I’m not buying units.
I want to make sure the typical type of property is a house. And then I just want to know, how many bedrooms do people want? Is it two bedrooms, three bedrooms, four bedrooms, because that’s what I’m going to target. Then I want to make sure, to get even more narrower, I want to know, what is the typical size of the block.
Go into SQM Research then, and then I have a look at what the typical size of the block is. Now, as I said, I showed you some free resources, such as domain.com.au, realestate.com.au/invest is actually where I find all the neighbourhood data.
They’ve hidden it from the menu at the moment, but that’s my secret way of getting there. And that gives us the information about the demographics as well. You can go straight to the source and grab it off the census data, or you can go in there and find the information that you need.
Now, I also introduced you to my suburb selector software, where I’ve actually, when I got really bored and couldn’t find, didn’t want to waste all my time going over all the different websites to find the information, put it all in one place, it’s in my location masterclass. If you head over to the first house buyer group in Facebook, in the show notes, which is under files for this show, I will put in a link to that location masterclass, so you can see how you might be able to use that yourself.
Also, I then showed in RP Data Professional, how you can actually go in and create your own watch list for those specific, three bedroom houses, in 500 to 800 square meters, and when they come on the market, get notified straight away. But also be able to go and create your own evaluation with the data and the tools that most banks use as well.
Now, I also added an extra little tip in there, and showed you a tutorial on how to find, in census, the streets that the renters want to live in. This is an absolute no-brainer, amazing tool. It took me months of working with census, of being able to find out how to this and build their builder, and I only used to work with usually big corporates, so it’s usually just a tutorial that I share with my students, but I’ve actually shown it for you.
So, go to the full episode, episode 7, on the Learn With Jane Slack-Smith page, to be able to see that full episode in absolute depth, so that you can get there. So, investorschoice.com.au/fhbsep7, First Home Buyer Show, Episode 7.
Head over there, or go to the learn with Jane Slack-Smith page in Facebook, episode 7, go through that tutorial for you. So, as you’ve seen, we then took that tutorial, we took that territory, we went back into RP Data, created that territory, looked at the properties on the market, with our absolute goal of having a typical property in the suburb that we chose, which is an affordable suburb in Brisbane. It was a three bedroom, within 500 and 800 square meter block, and we found three properties that are on the market at the moment that might be worth looking at further.
Created up an alert, so that any time any other of those properties that fit that model come up in that territory, we’ll get notified.
So, now you have it all. As an explosives engineer, I learned how to manage risk. I turned $45,000 into a multimillion dollar portfolio by using all the tools and tricks and resources that I’m sharing with you here on the First Home Buyers Show.
This information that I’m sharing with you is some paid tools, some unpaid tools, I give you free resources that you can go to and use right now, so that you can locate the property, and understand where to buy. And once you have that suburb that you can afford in, working out whether it actually has the filters that I use as well, the percentage of renters, the number of sales, and the vacancy rate, just the top three of 20 filters that I use that allows me to ascertain whether that suburb is worth my time and effort.
There you have it, the speedy recap, how to find a property using the tools and skills of an explosives engineer, so that you can get a property that’s going to go up in value, is going to be in demand, and that renters are gonna throw money at you so that they can rent your property.
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