22 Sep The 2 big mistakes people make when investing in property – Jane Slack-Smith
In today’s show Jane Slack-Smith tells us the 2 big mistakes people make when investing in property.
Kevin: You would by now know that we’re currently promoting your involvement in The Ultimate Guide to Renovation. It’s a great video series we’ve been running.
Are enrollments now open, Jane?
Jane: Yes, they are.
Kevin: Jane Slack Smith joins me. Jane, of course, is the mastermind behind that and the person you’ll see right through the entire program. If you do want to get into renovation, this is going to be the opportunity for you. Enrollments are open right now. You can use the link on the homepage at RealEstateTalk.com.au.
Jane, the question I have for you is, in this environment, can you renovate any property?
Jane: No, you can’t, Kevin. It’s such an important question. In actual fact, we spend six modules over the 12 modules in The Ultimate Guide to Renovation course making sure that people understand how important location is in finding not just the right suburb but the pockets of potential within a suburb and then the property to renovate.
Kevin: I guess there are so many questions to ask about whether it should be a two-, a three-, or even a four-bedroom property. Are those sorts of things important, Jane?
Jane: Absolutely. I speak to people all the time, and they say, “I want to buy a property. I know my own area so very well, so I’m going to buy close to where I live. I don’t want to travel very far, and I don’t have a lot of time on my hands.”
I often challenge them and say, “How well do you know your area? What was the capital growth last year? What’s the current rental return? What’s the pricing difference between a two- and a three-bedroom property or a three- and a four-bedroom property? What’s the rental yield? What are the infrastructure plans or the information around the difference of a pricing disparity between an un-renovated and a renovated property?”
They look at me a bit blank, Kevin, and say, “I don’t know that information.” That’s what you need as an investor to know what property is ripe for renovation in the right area.
Kevin: It just seems to me that by not asking those questions, you’re approaching it totally from the wrong angle because you should be looking at this as a business. As such, in a business you do actually ask all those questions to get all that information.
Jane: Absolutely. I think that’s the problem with first-time investors and especially people who see shows on TV that show that it’s really easy to renovate in a weekend and make money. The reality is that you have to start with the right property but that property has to be in the right area. You really need to have a plan, so before you even purchase a property, you need to be very clear on how much money you can make on it.
Kevin: What about questions like whether I should go for cash flow positive or whether I should just look at capital growth. Are they important considerations?
Jane: They are. A lot of people have a mentality that they have to choose. I know when I started over ten years ago, there were two camps and you really had to fall into one or the other.
Over the time when I built my Trident Strategy, I realized that if I renovated a property and could improve the rent, I could actually achieve both. You don’t have to choose. I have my property portfolios that are going up in value and aren’t costing me a lot of money. That is the thing that you can do with renovation as an active property investing strategy.
Kevin: I talked at the opening of our chat about The Ultimate Guide to Renovation, which is actually open right now. What can we expect inside that, Jane?
Jane: We open enrollments twice a year, and we do have a really hard deadline on that. It actually says there September 24, and that’s so that we can jump straight in and help our students.
There are 12 modules that are released weekly. There’s a private Facebook group. We have thrown in so many bonuses this year, and I would really get your listeners to go to your homepage and have a look at what’s involved.
We really are dedicated to having successful students. We jump in boots and all and help people through that entire process. This year is going to be bigger and better than ever.
Kevin: Use the button on our homepage, as Jane said, at RealEstateTalk.com.au. You’ll find it there. Click on that link. It will tell you about all the bonuses. It tells you all about the program. If you’re serious about renovation, this is the program that you need to lock into. It’s called The Ultimate Guide to Renovation. Look for it on our homepage.
Hey, Jane, all the best. Thank you for your time.
Jane: Thank you, Kevin.