1. How do I know what price to pay? www.renos.com.au | info@renos.com.au | 1300 550 656

2. CMA’s Become a Valuer How do I know what price to pay?

3. When it comes to Buying, there are two things you must determine: 1.You are paying the right price 2.Your strategy will make money It is odd, but sometimes a bargain buy still doesn't make you money CMA’s

4. CMA = Comparative Market Analysis It is hard evidence of a property’s value If adding value, complete a CMA for the finished product CMA’s

5. Ask real estate agents for comparable sold properties as well as those for sale – Include time on the market Also use RPData Compare like with like: – Number of bedrooms – Land size – Position – Condition Remember, for sale is not a sale!

6. CMA’s CASE STUDY Asking price $450,000 Say you could buy it for $420,000 You carry out CMA for the finished product (post reno) The question is...

7. CMA’s Will you make money?

8. CMA’s EXAMPLE 1 You find from the CMA that similar renovated properties have sold for $575,000 Hands up if you would buy A: the $420,000 reno property and reno it. Hands down if you would buy B: the $575,000 finished property The $420,000 buyers… keep your hands up …. Property A: RenovatorProperty B: Renovated Purchase:$420,000CMA: $575,000

9. CMA’s EXAMPLE 2 CMA shows similar renovated property is selling for….$525,000 Keep your hands up you would still buy A: the $420,000 property and reno it Hands down if you would buy B: the $525,000 finished property The $420,000 buyers… keep your hands up Property A: RenovatorProperty B: Renovated Purchase:$420,000CMA: $525,000

10. CMA’s EXAMPLE 3 If CMA shows similar renovated property is selling for….$490,000 Keep your hands up you would still buy the $420,000 property Hands down if you would rather buy the finished property i.e. pay $490,000 The $420,000 buyers… keep your hands up Property A: RenovatorProperty B: Renovated Purchase:$420,000CMA: $490,000 Who has no idea?! Let’s find out…

11. CMA’s Reno and Rent – Qld Investor Asking Price $450,000 You buy it for $420,000 Conveyancing/buy costs $16,000 (3.5-4% of Purchase Price) 4 week reno $42,000 (10% of Purchase Price) Holding costs during $2,400 (6% @ $478,000) Total (if you reno & rent) $480,400 Rent $550pw (5.95% gross)

12. CMA’s Reno and Sell – Qld Investor Total (if you reno & rent) $480,400 If you sell add 8 weeks holding $ 4,800 Total $485,200 Plus sell fee/advert/clean etc (3% of sale price)  @$575,000 = $17,250  @$525,000 = $15,750  @$490,000 = $14,700

13. Remember – we are using Stamp Duty as a Qld Investor CMA’s Purchase$420,000 CMA$490,000$525,000$575,000 Breakeven$499,900$500,950$502,450 Profit/loss-$9,900$24,050$72,550

14. CMA’s Investor$13,125 Owner Occupier$5,950 First Home Buyer$0 Qld Stamp Duty

15. CMA’s NSW$14,390 VIC$20,270 And if you bought an interstate investment

16. Become a Valuer Valuation Reports Use this when buying, when valuing or when refinancing

17. Become a Valuer

25. Methods of determining value: Comparable sales - can be broken down Rental Yield Development Feasibility Land value

26. Become a Valuer Comparable sales Land size and value Location Property type Property condition Sale date

27. Become a Valuer

28. Low sales: Related parties No advertising Structural/cosmetic issues Flooding Pipes Good buy Other

29. Become a Valuer High Sales: Related parties Something special Idiots

30. Summary Be realistic and use realistic sales Determine the best valuation method for your product Know why certain sales were low or high When refinancing/revaluing, go for 3-5% above

32. What did you learn today? Buying WellJustin Eslick Granny FlatsJudith Taylor ResearchJustin Eslick Clauses for Buying Well & NegotiatingRob Balanda Joint VenturesRob Balanda Investor ProfileJon Johnson Where to Buy and WhyThe Reno Kings How do I Know What Price To PayJustin Eslick

33. TOMORROW: DAY 2 FOUNDATIONS FOR SUCCESS Warren BlackMatt Cosgrove Colleen Sutherland Kerri Burness Accountant/Lawyer Investor Profile Principal - SutherlandsManaging Director/Licensee Wealthsafe Property Management Equity Access Australia Group

34. Write down your questions

35. Tonight... We want you to think about just 3 things! RCR Model Roadblocks – Facing and overcoming roadblocks. Change – What are you doing to get the change that you want and deserve. Role models – Using role models to achieve that change.