12 Jun Making money through renovation – Jane Slack-Smith
The good news is that if you want to get into renovation, the opportunity is there for you right now to learn from the master. I will tell you how.
Kevin: Well, the good news is that if you want to get into renovation, the opportunity is there for you right now because the cart with the Jane Slack-Smith has just opened. Enrollments are open up until the 15th of June. Jane joins me to talk about it right now – Jane Slack-Smith.
Jane, thanks for your time.
Jane: Pleasure, Kevin.
Kevin: You’ve been doing this for a few years now, teaching people about renovations. And I’ll tell you in just a moment how you can get to enroll in Jane’s special course. But, Jane, the question I’ve got for you is, is renovation still relevant in this market?
Jane: Actually, Kevin, it’s funny you should mention that because I was looking at interviews that I’ve done over the last five years and since we’ve been running the Ultimate Guide to Renovation, and I’m always asked “Is renovation still relevant?”
I went back to when it was “Oh, the market has just started going up in 2014. Is it relevant?” “The mining boom’s about to come off,” and “Has the market picked since 2016?” and “With the lender changes in 2016, is renovation relevant?”
The beauty about this strategy is that it is timeless through all markets, and it’s almost the meat and potatoes of a good property investment. In uncertain times, I think more so we see it’s not a time to buy and sell, it’s a time to buy and hold, and it’s about manufacturing the equity that you have, and a beautiful way to do it is through renovation.
Kevin: Well, if it was that easy, where do people go wrong, Jane?
Jane: I think it really starts with the location. People don’t understand that you need to have a really good quality suburb with the right dynamics and have the right targeted property for that suburb, for the demographics of that suburb, but also then you’re having the pricing disparity between renovated and un-renovated property.
It all starts with the location and getting that right, and as the tide goes out, there are going to be a lot of people who are going look exposed because they’ve been gliding along on this great Mecca that we’ve had during a period of time, and it’s the ones who have the good quality suburb selection done and then the good quality properties within those suburbs that are going to be the winners over the next few years.
Kevin: Is there a magic formula? Is there a checklist or something we can do to help us make sure that we get the right area and the right property, Jane?
Jane: I spent a lot of time thinking about this over the years, and I’ve come down to like 30 filters where I’ve almost back-engineered quality suburbs that have performed the test of time, and some of it is just really obvious.
If you’re going to have a buy-and-hold strategy, it’s about where the renters want to live. So I have a fundamental cut-off; I want to have over 30% renters in the area. It’s about having the typical properties, so not having a one-bedroom unit where everyone wants a three-bedroom house.
They’re some of the criteria. But I also look at past growth, I look at gentrification, infrastructure, household income. I have a real fixed filter system that I use and in actual fact, in the Ultimate Guide to Renovation, the Suburb Selector software that comes with that covers over 10,000 suburbs, and we have the information that’s coming through that monthly and updated. So, people can easily do that analysis and work out where they can afford and the suburbs that actually have those criteria.
Kevin: How do we get a hold of that list?
Jane: It’s about you’re own buying criteria. You might be able to afford a $500,000 property, Kevin, while I can afford a $350,000 property. So, it really starts with understanding what your criteria is and then coming down to that filtering system and doing the analysis on the suburbs, coming up to three to five suburbs, and then taking it a step further and finding out what streets in the suburbs are where the renters want to be, then the typical property.
In actual fact you can get down to property on the market at the moment with the current software and obviously our Suburb Selector software, within a day, you can really pull that out, which is fabulous. I know people spend months trying to find properties.
Kevin: Here’s a tip for you. Grab your pen because if you’d like to learn a little bit more about this, the website to go to is FreeRenoEvent.com.au or just use the link on the home page at RealEstateTalk.com.au. That’s opened only for one week, though, until the 15th of June.
Jane: That’s right. Yes, obviously, as we said, the location of property is important, having the renovation ability to make money and manufacturing equity, we get the chance to push the rents up, which is great – it costs us less to hold the property – but actually finding the right property is important as well.
So, if people go to that FreeRenoEvent.com.au website, they can actually see a video series that we’ve been running for the last couple of weeks, and the very first one is download the checklist that we have there and you can apply it to your own property inspections, but follow me on that property inspection and look at what I’m looking at and the things that would really trigger some problems.
There’s a great video series there that’s up until the 15th of June, and as you said, we’re open for enrolments for just a week until the 15th of June, and then we close shop and we bunker down, and we help all our students get to their success goals.
Kevin: The website again is called FreeRenoEvent.com.au or use the link on the homepage at RealEstateTalk.com.au, but you only have until the 15th of June to get in. You can get that information that we’ve been talking about today and also understand how you can get into renovation and make it work for you – the strategy that will work for you today.
Jane Slack-Smith, thank you so much for your time.
Jane: It’s an absolute pleasure. Thank you, Kevin.