WEBVTT - Ilse Wolfe: The key is doing the work yourself 0:00:05.721 --> 0:00:09.321 You're listening to the Weekend Collective podcast from News Talk, 0:00:09.361 --> 0:00:17.401 sedb Nious, Chad, Who We Were, Bye, Who We Can Cancel? 0:00:17.561 --> 0:00:32.321 Had Bond to Bey, w Bond to be. 0:00:41.881 --> 0:00:42.001 Hi. 0:00:42.121 --> 0:00:43.801 Yes, welcome back to the Weekend Collective. I've got to 0:00:43.801 --> 0:00:46.641 give top marks to Tyra Roberts, my producer. So far tire, 0:00:46.681 --> 0:00:48.761 you're killing it on the music in a good way. 0:00:49.401 --> 0:00:51.841 I supposed to. That's so bad you killed the show. 0:00:52.881 --> 0:00:55.561 Welcome back on Tim Beverage. This is the Weekend Collective. 0:00:56.001 --> 0:00:57.761 And by the way, if you miss a Paddel, great 0:00:57.761 --> 0:01:00.561 fun there with Mark Kreisel and Paul Spoonley covering a 0:01:00.601 --> 0:01:02.241 lot of topics. If you miss any of the hours, 0:01:02.321 --> 0:01:04.081 then please go and check out our podcast. Look for 0:01:04.081 --> 0:01:06.401 the Weekend Collective on the News Talks it be website 0:01:06.601 --> 0:01:09.761 or iHeartRadio. And now it's time for the One Roof 0:01:09.841 --> 0:01:12.481 Radio Show. Actually today today we've got two new guests. 0:01:12.601 --> 0:01:16.281 Also for the Parenting the Parent Squad and today for 0:01:16.481 --> 0:01:18.961 the One Roof Radio Show, we're joined by a new guest. 0:01:18.921 --> 0:01:21.481 So I'll introduced in just a moment, but just to 0:01:21.521 --> 0:01:22.921 give your heads up on what we're going to talk 0:01:22.961 --> 0:01:27.121 about and as it is, that question about renovating. And 0:01:27.161 --> 0:01:29.201 of course, if you are a home owner and you've 0:01:29.241 --> 0:01:31.801 got a house and you want to renovate it because 0:01:31.881 --> 0:01:34.121 you are going to be living in it's that one question. 0:01:34.441 --> 0:01:36.601 There'll still be questions you might ask yourself about whether 0:01:36.641 --> 0:01:39.241 you're overcapitalizing or not, or should we do that? But 0:01:39.281 --> 0:01:40.641 then again, we're going to limit it for the next 0:01:40.681 --> 0:01:44.641 thirty years. Who cares? But there is always the question 0:01:44.921 --> 0:01:48.881 about when you can I mean renovating. It's not cheap. 0:01:49.481 --> 0:01:52.161 Building is not cheap. Nothing to do with property is cheap, 0:01:52.161 --> 0:01:54.041 although maybe buying it's a little cheaper than it was 0:01:54.041 --> 0:01:56.401 a few couple of years ago. But can We're going 0:01:56.441 --> 0:01:58.721 to talk about renovating, and I want to know from 0:01:58.721 --> 0:02:01.881 you how have you budgeted for your renovation and the 0:02:01.921 --> 0:02:04.881 decisions you made and what was the key to keep 0:02:05.161 --> 0:02:07.841 it's something that you could live with basically, or someone 0:02:07.921 --> 0:02:09.401 else could live with in the event that you're doing 0:02:09.521 --> 0:02:12.721 up to sell it. So the simple question is, can 0:02:12.761 --> 0:02:15.601 you do a significant renovation for under half a million dollars? 0:02:15.841 --> 0:02:18.401 Oh gosh, a lot of money, isn't it? And how 0:02:18.481 --> 0:02:21.081 can you guarantee you'll improve your returns as a result, 0:02:21.081 --> 0:02:24.041 Because you might buy how often have you heard let's 0:02:24.121 --> 0:02:27.001 buy a door rapper, and you buy the door upper 0:02:27.041 --> 0:02:29.161 and you do it up, and you go and think, 0:02:30.121 --> 0:02:32.121 what's spent way too much on that. I never had 0:02:32.161 --> 0:02:33.961 any idea that I would have blown so much money. 0:02:34.201 --> 0:02:36.521 So we'd love to hear your have your stories as 0:02:36.521 --> 0:02:40.041 well on the Key to a Successful Renovation eight hundred 0:02:40.081 --> 0:02:42.921 and eighty ten eighty text nine two nine turn Joining 0:02:42.921 --> 0:02:45.081 my me. She is a new guest on the show, 0:02:45.561 --> 0:02:48.961 and she's a real estate investor. She's a property coach 0:02:49.001 --> 0:02:52.761 at Wolf Property and her name is Elsa Wolf, Elsa gooda. 0:02:52.841 --> 0:02:55.081 How you going, Hi, Jim, Thank you so much. I'm 0:02:55.161 --> 0:02:56.121 very excited to be here. 0:02:56.281 --> 0:02:59.121 Well good, Hey, how long have you been in the 0:02:59.121 --> 0:03:00.161 property investment game? 0:03:00.681 --> 0:03:02.961 So that's a great question, so I thought i'd do 0:03:03.001 --> 0:03:05.801 a quick culch before I came here. Actually, so for 0:03:05.841 --> 0:03:10.121 the best part of twenty years, I've been investing basically 0:03:10.161 --> 0:03:10.881 when I was a toddler. 0:03:11.321 --> 0:03:13.441 Can I no? Oh, yeah, of course I should have 0:03:13.441 --> 0:03:15.641 said that first. Yeah. 0:03:15.881 --> 0:03:15.961 No. 0:03:16.161 --> 0:03:18.761 So from when I was about twenty two to twenty three, 0:03:18.881 --> 0:03:21.841 I started vesting part time, and that was while I 0:03:21.921 --> 0:03:24.201 was working for a major bank, a main bank that 0:03:24.321 --> 0:03:27.241 was the light bulb for myself was that. 0:03:27.201 --> 0:03:29.241 Because also when you're working for a bank, you have 0:03:29.681 --> 0:03:32.641 a good access to a decent interest, right, I mean, 0:03:33.241 --> 0:03:34.801 if you do work for bank, you do get a 0:03:34.841 --> 0:03:35.481 discount rate. 0:03:35.601 --> 0:03:38.561 Yeah, I was smart, definitely, So staff discount fifty points, 0:03:38.601 --> 0:03:41.001 you know, so point five of a percent generally speaking, well, 0:03:41.041 --> 0:03:43.281 at least it was in two thousand and seven. Okay, 0:03:43.441 --> 0:03:47.041 So yeah, So about eighteen nineteen years ago started investing 0:03:47.121 --> 0:03:51.401 whilst a very helpful client showed me the way an 0:03:51.441 --> 0:03:55.841 accounting partner, so that was really enlightening. And then ten 0:03:55.921 --> 0:03:59.841 years ago I realized actually July twenty fifteen was my 0:03:59.881 --> 0:04:02.841 last salary paycheck. So I've been investing full time for 0:04:02.881 --> 0:04:04.641 ten years and coaching for nearly five. 0:04:05.361 --> 0:04:09.201 What was it like doing your first deal? And that's great, 0:04:09.441 --> 0:04:11.161 I mean it's good to have someone sort of holding 0:04:11.201 --> 0:04:12.801 your hand, isn't it. Who knows a bit, But what 0:04:12.841 --> 0:04:14.401 was it like for you actually biting the bullet and 0:04:14.441 --> 0:04:15.241 doing that first deal? 0:04:15.361 --> 0:04:18.281 Oh goodness. Apart from that first conversation where I saw 0:04:18.321 --> 0:04:21.961 the profit and lost by this accounting expert, it was 0:04:22.041 --> 0:04:24.361 really feel my way as I went. I lived in 0:04:24.401 --> 0:04:26.961 Hamilton for the corporate team of a main bank at 0:04:26.961 --> 0:04:29.801 the time, so I did that classic Hey, I should 0:04:29.801 --> 0:04:33.841 buy in my neighborhood. So fortunately, long term wise, that 0:04:33.881 --> 0:04:38.121 worked out. Unfortunately at the time, it was about eight 0:04:38.121 --> 0:04:41.041 months before the GFC hit in two thousand and eight, 0:04:41.081 --> 0:04:44.561 so I learned that very abruptly. I think my ignorance 0:04:44.601 --> 0:04:46.601 at the time is probably what saved me, to be honest, 0:04:46.641 --> 0:04:50.561 because I actually went into an immediate situation of negative 0:04:50.561 --> 0:04:53.361 equity and negative cash flow. So what that means is 0:04:53.801 --> 0:04:56.321 the loan I had, which was ninety five percent that 0:04:56.441 --> 0:04:58.921 was the standard at the time. Would you believe that 0:04:59.681 --> 0:05:04.001 has never been repeated for obvious reasons. And negative cash flow, 0:05:04.041 --> 0:05:04.761 So the cost of my. 0:05:04.761 --> 0:05:06.881 More if you were subsidizing the whatever rent you were 0:05:06.881 --> 0:05:08.881 getting out of it, you were topping that up exactly. 0:05:09.001 --> 0:05:10.801 And the property price had gone down as well. And 0:05:10.841 --> 0:05:13.801 see you're thinking, I've dug myself a hole, and I'm 0:05:13.841 --> 0:05:16.721 just gonna I guess you just have to keep going 0:05:16.801 --> 0:05:19.281 until sort of get above ground again, do well. 0:05:19.441 --> 0:05:21.121 I was on my oe, so I sort of removed 0:05:21.121 --> 0:05:23.641 myself a little while very briefly after. It was an 0:05:23.641 --> 0:05:26.601 investment property. The first four I bought were investment properties, 0:05:26.841 --> 0:05:28.841 so I guess I was a rent vestor, which is 0:05:29.041 --> 0:05:31.281 a popular word now, there was no name to it 0:05:31.361 --> 0:05:36.201 back then, but basically lived in a family house whilst 0:05:36.601 --> 0:05:39.561 starting to invest, took off with my boyfriend at the 0:05:39.561 --> 0:05:42.801 time to have and the UK and just kept sending 0:05:42.841 --> 0:05:45.361 pounds back to top it up. I didn't understand the 0:05:45.361 --> 0:05:48.521 gravity of it, but there were some scary lessons along 0:05:48.521 --> 0:05:49.161 the way, So. 0:05:49.241 --> 0:05:51.321 I reckon, that's the kay I reckon. A lot of 0:05:51.321 --> 0:05:53.201 people I speak to who have got into the high 0:05:53.241 --> 0:05:56.321 stakes games of whether it be well and sometimes in 0:05:56.361 --> 0:05:58.881 the case of other business adventures, a lot of people 0:05:58.921 --> 0:06:01.281 point to the fact that they'd glad they didn't actually 0:06:01.361 --> 0:06:05.321 know the lessons that they subsequently learned, because I might 0:06:05.361 --> 0:06:06.721 not have got out of bed in the morning sort 0:06:06.721 --> 0:06:09.121 of thing. Do you look back and go, gosh, it 0:06:09.161 --> 0:06:10.561 was so good that I knew so. 0:06:10.601 --> 0:06:14.121 Little exactly and learned the stripes. Earned my stripes the 0:06:14.121 --> 0:06:17.921 hard way, basically, and early on, early on, there was 0:06:17.961 --> 0:06:21.161 definitely a version too, in a different way that was 0:06:21.481 --> 0:06:23.521 not cash flow. Actually, that's part of the journey of 0:06:23.561 --> 0:06:25.881 learning I've been on to lead to the methods that 0:06:26.161 --> 0:06:30.041 I exclusively deploy for myself but also teach my client. 0:06:30.121 --> 0:06:32.241 So that's the type of person I attract as a 0:06:32.241 --> 0:06:36.761 property investor. They know I'm tunnel focused on manufacturing, you know, 0:06:36.801 --> 0:06:41.281 creating high gross returns through adding value through renovations, because 0:06:41.601 --> 0:06:44.601 negative equity basically, when your loan to the bank and 0:06:44.641 --> 0:06:46.401 your costs well, sorry, the loan to the bank is 0:06:46.441 --> 0:06:50.521 higher than the value of the asset, basically you have 0:06:50.601 --> 0:06:51.081 no asset. 0:06:51.281 --> 0:06:53.241 Yeah, So is that sort of is that sort of 0:06:53.241 --> 0:06:55.841 instinct wanting to renovate? Does that come from the fact 0:06:55.841 --> 0:07:00.041 that that's one thing you can do? Okay? The property 0:07:00.201 --> 0:07:03.281 for instance, I mean, how many people bought properties back 0:07:03.321 --> 0:07:06.561 in twenty twenty twenty one, and we know the tragic 0:07:06.641 --> 0:07:10.281 tale of how tough times are high interest rates. I 0:07:10.281 --> 0:07:12.721 mean there's still you know, they've recovered a bit, which 0:07:12.761 --> 0:07:14.641 is probably a relief for a lot of people. But 0:07:14.761 --> 0:07:18.321 is that really why is that your main strategy actually 0:07:18.441 --> 0:07:22.281 to buy properties that need a bit of need a 0:07:22.321 --> 0:07:25.481 bit of work or could yeah, we'll carry on. 0:07:25.561 --> 0:07:28.401 Yeah, So I have it's actually a trademarked process I have. 0:07:28.481 --> 0:07:31.121 It's called cash flow hacking, and it's basically the culmination 0:07:31.241 --> 0:07:34.641 of I guess these eighteen years of some wins, some 0:07:34.681 --> 0:07:37.281 horrific mistakes and lessons that have got me to where 0:07:37.281 --> 0:07:43.161 I am. So I believe in achieving, forcing appreciation the 0:07:43.241 --> 0:07:45.561 value of a property as soon as I purchase it 0:07:45.641 --> 0:07:46.041 or my client. 0:07:46.361 --> 0:07:48.201 So you're all about making an improvement to it, all 0:07:48.281 --> 0:07:51.201 about it, all about it exclusively. They're not somebody who 0:07:51.241 --> 0:07:53.481 just buys. So the last thing you're doing is flecking 0:07:53.481 --> 0:07:56.161 a property which people will be pleased to please to hear, 0:07:56.161 --> 0:07:57.681 because that tends to trigger people a bit. 0:07:57.961 --> 0:08:00.481 Oh no, I'm all about holding. So it's called the BURR. 0:08:00.921 --> 0:08:04.681 It's sort of an overlay to the BurrH method by renovate, rent, 0:08:04.761 --> 0:08:07.641 reff finance, repeat. So if you think about all of 0:08:07.641 --> 0:08:11.801 the benefits of investing in real estate or property, the 0:08:11.921 --> 0:08:14.321 expectations if you want all of the above, right, we're 0:08:14.361 --> 0:08:18.921 talking cash flow, ultimately getting the rent or the income 0:08:19.041 --> 0:08:23.081 to exceed all of those expenses to create ultimately a 0:08:23.081 --> 0:08:26.561 passive income for retirement or whatever you want. Capital growth 0:08:26.561 --> 0:08:30.561 which equals wealth over time, leverage which is to be 0:08:30.601 --> 0:08:33.481 able to add value to the property to then purchase 0:08:33.521 --> 0:08:35.761 something else or invest in something else, and you can 0:08:35.761 --> 0:08:38.161 only do that through property. And then the other one 0:08:38.201 --> 0:08:42.121 is land, so you have new Belds townhouses lots of 0:08:42.121 --> 0:08:46.121 great benefits to warranties, that sort of stuff, low maintenance, 0:08:46.361 --> 0:08:49.921 but without the land portion, which is exclusive to existing builds, 0:08:50.521 --> 0:08:53.081 those are all of their benefits. So without the land, 0:08:53.401 --> 0:08:55.921 remember land is the finite thing we have here, right, 0:08:56.161 --> 0:08:58.641 so if you have land, you get the future benefit 0:08:59.081 --> 0:09:00.001 of intensification. 0:09:00.201 --> 0:09:02.201 Do you think that the do you think that the 0:09:03.881 --> 0:09:08.921 idea of renov is going to become because it does feel. 0:09:09.321 --> 0:09:12.441 I mean, I've I don't have any investment properties, but 0:09:12.441 --> 0:09:15.361 I've hosted a property out for I don't know, three 0:09:15.441 --> 0:09:17.801 or four years now, and you do get a sense 0:09:17.841 --> 0:09:20.081 that there was a time when people were right into renovating, 0:09:20.721 --> 0:09:23.481 and then it became the no one would bother because 0:09:23.841 --> 0:09:25.721 you simply buy it, hang onto it for a year 0:09:25.841 --> 0:09:27.841 or two, and then you could sell it because the 0:09:27.881 --> 0:09:31.601 property market was going crazy. Do you think where's the 0:09:31.641 --> 0:09:34.041 property market at? Do you think in terms of the 0:09:34.121 --> 0:09:37.321 number of investors who would buy with an intention to 0:09:37.361 --> 0:09:40.921 do something with it and then have that improved our 0:09:40.961 --> 0:09:41.601 set to sell. 0:09:42.401 --> 0:09:45.481 So depending on what your objective is or your outcome 0:09:45.601 --> 0:09:48.161 is will determine the strategy, and you have to pair 0:09:48.161 --> 0:09:49.961 that with your own risk profile. You know what kind 0:09:49.961 --> 0:09:53.481 of risk are you willing to take? But different It's 0:09:53.481 --> 0:09:55.761 called the property cycle or the property clock, if you 0:09:55.761 --> 0:09:58.601 think about it as a clock. There are growth stages 0:09:58.641 --> 0:10:00.881 and there are a decline of value stages. Where we 0:10:00.921 --> 0:10:03.121 are at the moment, we're sort of around that six 0:10:03.361 --> 0:10:06.681 thirty seven o'clock if we've bottomed out, we've gone through 0:10:06.721 --> 0:10:09.681 this period of decline, we're evening out, and we're sort 0:10:09.721 --> 0:10:12.561 of poised to grow. We're not in that rampant growth. 0:10:12.801 --> 0:10:15.041 So if you were to buy any property and think 0:10:15.121 --> 0:10:17.561 I'll do something and make some money, that's not going 0:10:17.561 --> 0:10:19.881 to fly just yet. You have to be calculated. 0:10:20.241 --> 0:10:23.721 So don't get your hopes up about quick growth at 0:10:23.761 --> 0:10:25.561 the moment, regardless of what you do with it. 0:10:25.801 --> 0:10:30.001 Interestingly, I mentioned to Cameron Bagriy economist on my way here, 0:10:30.001 --> 0:10:32.641 and he called me, called me back in on the 0:10:32.801 --> 0:10:34.601 of the full drive here and he sort of said, hey, look, 0:10:34.961 --> 0:10:36.961 it really is about five percent that seems to be 0:10:37.201 --> 0:10:40.801 the potential growth for this year. Five percent of value growth. Organically, 0:10:41.681 --> 0:10:45.361 we're not heading into a rampant growth stage. 0:10:45.841 --> 0:10:48.081 That's because our economy is a bit stuffed, really, isn't it? 0:10:48.081 --> 0:10:49.201 To put it frankly, isn't it. 0:10:49.801 --> 0:10:52.521 Yeah, I mean there have been many many changes. It's 0:10:52.521 --> 0:10:55.321 all looking brighter. You know, the OCIA came down by 0:10:55.321 --> 0:10:58.521 fifty points to three point seven five on Wednesday, and 0:10:58.561 --> 0:11:01.801 you know, we've had multiple decreases now, so you know, 0:11:01.921 --> 0:11:05.441 the perception of businesses in the public is more positive 0:11:05.441 --> 0:11:07.641 than it's been for a long time. But we've also 0:11:07.761 --> 0:11:11.361 had several i would say short, short term adjustments that 0:11:11.481 --> 0:11:15.121 need to be corrected. So the Residential Tenancies Act RTA 0:11:15.401 --> 0:11:18.521 thirtieth of January a lot of changes to notice periods, 0:11:18.761 --> 0:11:20.361 you know, if you want to give a tenant. 0:11:20.041 --> 0:11:21.921 Notice, so it's friendlier for investors. 0:11:22.041 --> 0:11:23.881 It is more friendly so you're not stuck with a 0:11:23.921 --> 0:11:27.121 lousy tenant. It's friendlier as a landlord. Costs are coming down, 0:11:27.201 --> 0:11:30.841 we're expecting them to come down, but we've also had 0:11:30.881 --> 0:11:33.401 a lot of costs ramped up in the recent years 0:11:33.401 --> 0:11:36.961 with healthy home standards, which definitely are a great step 0:11:37.041 --> 0:11:40.481 up for us. Our housing stock is incredibly old, so 0:11:40.521 --> 0:11:44.041 that therein lies a massive opportunity for value add or 0:11:44.081 --> 0:11:47.081 renovating based you know, might be investors or home buyers. 0:11:47.401 --> 0:11:49.681 Okay, tell us what was your first renovation then? What 0:11:50.161 --> 0:11:52.801 did you what were you looking for with the property, 0:11:52.801 --> 0:11:55.081 what did it look like, what did you intend to 0:11:55.081 --> 0:11:56.881 do with it, what did you end up doing with it? 0:11:56.961 --> 0:11:57.881 And did it work? 0:11:58.561 --> 0:11:58.761 Yeah? 0:11:58.961 --> 0:12:00.681 I mean ultimately it would have worked if you did 0:12:00.681 --> 0:12:02.281 it long enough time. 0:12:02.561 --> 0:12:02.761 Yeah. 0:12:02.801 --> 0:12:04.881 So with that first property, it was a standalone house 0:12:04.881 --> 0:12:07.961 and Hamilton and Glenn View, which I actually still love. 0:12:08.001 --> 0:12:12.441 That's a great it's a great suburb. And the scope 0:12:12.441 --> 0:12:14.921 for the renovation was forced upon me basically through the 0:12:15.001 --> 0:12:17.681 Global Financial crisis, so GFC if you haven't lived through 0:12:17.681 --> 0:12:22.281 that yet. And basically it was a standalone house. Again, 0:12:22.401 --> 0:12:24.081 as you said, I bought it, had no idea what 0:12:24.121 --> 0:12:26.041 I was doing, did not think too much about the 0:12:26.121 --> 0:12:28.841 extra costs and cash flow until they hit. I also 0:12:28.881 --> 0:12:30.641 then coupled. 0:12:30.281 --> 0:12:32.721 With what condition was the house in at the time. 0:12:33.201 --> 0:12:36.121 It was retro sort of had that asbestos seventies. 0:12:36.161 --> 0:12:38.041 Oh my god, Okay, asbestos not. 0:12:38.001 --> 0:12:41.721 Retro, but yeah, so the eighties vinyl that had the 0:12:41.801 --> 0:12:45.601 horrific diamonds and flowers patterns, but was also asbestos. It 0:12:45.721 --> 0:12:50.601 actually had a small thirty square meter house or building 0:12:50.601 --> 0:12:51.121 at the back. 0:12:51.881 --> 0:12:53.801 Did you buy it thinking you were going to renovate it? 0:12:55.441 --> 0:12:57.681 I knew it needed some work, but I had no plan. 0:12:57.881 --> 0:13:00.281 I didn't know what that really meant. It was actually 0:13:00.281 --> 0:13:02.601 my boyfriend at the time he sort of said, hey, look, 0:13:02.641 --> 0:13:05.401 my uncle's an electrician and let's do this to that. 0:13:05.441 --> 0:13:07.801 And I got my head into that space. It was 0:13:07.881 --> 0:13:10.281 a standalone house, three bed, one bath, but there was 0:13:10.281 --> 0:13:15.321 a little not a separate dwelling part like a sleepout 0:13:14.961 --> 0:13:17.641 sleep out at the back, and it was one dwelling. 0:13:17.801 --> 0:13:20.281 And as I suddenly realized after a few months, hey 0:13:20.281 --> 0:13:22.481 this cash you know, my revolving credits which I had 0:13:22.521 --> 0:13:26.281 initially was disappearing. We decided, hey, we need to talk 0:13:26.321 --> 0:13:28.681 to counsel. We ended up getting a building consent to 0:13:28.841 --> 0:13:30.801 separate those into two dwellings. 0:13:31.241 --> 0:13:33.801 So was it the old the traditional quarterer eco type 0:13:33.841 --> 0:13:34.401 of thing, which was. 0:13:34.401 --> 0:13:38.241 Exactly a nice flat section, so very tidy brick currogantius. 0:13:38.281 --> 0:13:40.001 How many of those going these days? Are they? 0:13:40.521 --> 0:13:40.801 I know? 0:13:41.281 --> 0:13:43.121 And it was really great because that was a method 0:13:43.241 --> 0:13:45.641 or a means to create cash flow that would alleviate 0:13:45.681 --> 0:13:47.721 some of that that chop up whoe. I mean, I was, 0:13:47.761 --> 0:13:50.121 you know, in my second job out of UNI. It 0:13:50.121 --> 0:13:52.561 wasn't a huge salary, and I was struggling so we 0:13:52.561 --> 0:13:54.321 were forced to come up with solutions, and I think 0:13:54.361 --> 0:13:56.841 that's always been part of my psyche since then. Every 0:13:56.881 --> 0:13:59.521 time I've gotten to trouble or stress, I've had to 0:13:59.561 --> 0:14:02.641 just sort of force myself to come up with a solution. 0:14:03.521 --> 0:14:05.681 Coupled to that was the issue sure that I was 0:14:05.721 --> 0:14:09.601 a young I was a young landlord, and the tenant 0:14:10.081 --> 0:14:12.881 initially had both the front house and back house, and 0:14:13.161 --> 0:14:15.681 I just decided to stop paying one day, and so 0:14:15.761 --> 0:14:18.001 I got into five thousand dollars of arrears because I 0:14:18.241 --> 0:14:20.201 was easily the one who could push to the bottom 0:14:20.241 --> 0:14:20.681 of that list. 0:14:20.841 --> 0:14:23.761 This was Hamilton project, wasn't it? And Hamilton Yeah, anyone 0:14:23.801 --> 0:14:26.361 who's listened to this show, just briefly is the running 0:14:26.361 --> 0:14:29.561 gag with my former co host Tim Rocksborough was years 0:14:29.561 --> 0:14:33.481 ago when the property market went nuts. As a lay 0:14:33.481 --> 0:14:36.921 person watching the property market, I remember looking at Hamilton going, oh, yeah, 0:14:36.921 --> 0:14:38.881 that Hamilton. I reckon it's going to go sometime. And 0:14:38.921 --> 0:14:41.681 I just sat passively and watched Hamilton go nuts. Because 0:14:41.681 --> 0:14:43.121 Hamilton did go. 0:14:43.601 --> 0:14:46.881 Twenty twenty, twenty twenty one. Every month that we're up 0:14:46.881 --> 0:14:49.041 ten twenty thirty thousand, do you know the same property, Yes, 0:14:49.121 --> 0:14:50.041 you're absolutely right. 0:14:50.121 --> 0:14:52.281 Yeah, Look, we want to take your calls as well 0:14:52.841 --> 0:14:55.481 your experiences on renovating, but also what is the first 0:14:55.481 --> 0:14:58.041 thing you renovate if you're if you're an owner and 0:14:58.281 --> 0:15:00.561 if you're a buyer, do you want to see something 0:15:00.641 --> 0:15:03.561 renovated or do you actually look and think, well, here 0:15:03.561 --> 0:15:05.441 are some key things. I really want to say there's 0:15:05.441 --> 0:15:07.841 some room room and me doing some work for them, 0:15:07.961 --> 0:15:10.281 because there are certain things we know expensive I think 0:15:10.641 --> 0:15:13.521 kitchens and bathrooms. But if you happen to want to 0:15:13.641 --> 0:15:15.481 reline and do a bit of plastering and painting, that's 0:15:15.481 --> 0:15:17.521 probably a sitter, isn't it. Anyway, we're going to take 0:15:17.521 --> 0:15:19.001 your cause as well if we'd love you to join 0:15:19.001 --> 0:15:21.561 the conversation. My guest is Else a Wolf. She's a 0:15:21.601 --> 0:15:25.401 real estate investor and coach at Wolf Property and we'll 0:15:25.401 --> 0:15:26.921 be back in just a moment. News talks. But you 0:15:26.921 --> 0:15:29.841 know the number eight hundred and eighty ten eighty text 0:15:30.121 --> 0:15:32.441 nine nine two, And I guess the key question is 0:15:32.841 --> 0:15:35.401 do you think that along the lines of what Else 0:15:35.441 --> 0:15:37.961 has been saying, that maybe the way to make money 0:15:37.961 --> 0:15:39.521 in the market right now, because it's not going to 0:15:39.561 --> 0:15:41.041 be going gang buses if you just buy it and 0:15:41.041 --> 0:15:44.121 don't do anything. Is that the secret to making money 0:15:44.121 --> 0:15:47.041 in the property market. It's twenty two past four News Talks, b. 0:15:50.961 --> 0:16:17.161 Song, Hell the Fleen, What for You Nothing. 0:16:17.121 --> 0:16:22.921 Cally's Welcome back to the One Roof Radio Show. I'm 0:16:22.961 --> 0:16:25.521 Tim Beveridge. My guest is Elsa Wolf. By the way, 0:16:25.641 --> 0:16:29.121 she is an expert at basically doing something with a property. 0:16:29.121 --> 0:16:31.561 You don't just bite sit on it, renovate it, add 0:16:31.601 --> 0:16:33.841 some value and then turn it into an asset that 0:16:33.881 --> 0:16:37.121 you'll be happy that basically you bought. So if you've 0:16:37.121 --> 0:16:40.361 got any questions, then Elsa is the perfect person to 0:16:41.121 --> 0:16:42.681 give a call, and you can do that right now 0:16:42.681 --> 0:16:44.801 in eight hundred and eighty ten eighty. And also if 0:16:44.801 --> 0:16:47.161 you've got the benefit of your own experience, because one 0:16:47.201 --> 0:16:49.601 of the simple questions I want to ask Elsa is 0:16:49.961 --> 0:16:53.641 where's the Okay, there's two ways to ask this. One 0:16:53.681 --> 0:16:55.441 is where's the best place to spend your money on 0:16:55.481 --> 0:16:58.241 a proper property? But I'm going to start with where's 0:16:58.281 --> 0:17:00.441 the easiest way to waste money on a renovation? 0:17:02.081 --> 0:17:05.041 That age old question, so it's it's I would say 0:17:05.121 --> 0:17:08.681 the most expensive risk is if it's an investment property, 0:17:08.681 --> 0:17:13.721 which is actually how I focus is basically projecting your 0:17:13.721 --> 0:17:16.401 own desires and wants, and usually those come in the 0:17:16.441 --> 0:17:20.321 area of kitchens, bathrooms, and fixtures. You know, So the 0:17:20.361 --> 0:17:23.801 fancy chandelier or the beautiful dining table light that was 0:17:23.881 --> 0:17:26.081 really unnecessary, high spec. 0:17:25.881 --> 0:17:27.521 Causing it, don't fall in love with it. 0:17:27.721 --> 0:17:30.521 Don't fall in love and project yourself into it. Yeah, 0:17:30.561 --> 0:17:32.601 when you renovate, it needs to be suitable for the 0:17:32.601 --> 0:17:34.361 place and who's most likely to live there. 0:17:34.441 --> 0:17:37.601 Did you find that when you started doing this? Did 0:17:37.641 --> 0:17:39.561 you was that an instinct you had to resist yourself, 0:17:39.561 --> 0:17:42.401 because it sends me that would be the most natural 0:17:42.481 --> 0:17:45.161 human instinct that you have to fight against. It's like, 0:17:45.321 --> 0:17:48.201 you're not living here, it's for someone else who's going 0:17:48.281 --> 0:17:49.601 to live as a tenant. 0:17:50.681 --> 0:17:54.521 I mean I started out fairly broke, so yeah, so you. 0:17:54.481 --> 0:17:56.761 Basically were like, we're not getting in the chandelier anyway, 0:17:58.001 --> 0:17:59.801 no chandlier in the bathroom. 0:17:59.401 --> 0:18:02.441 Right, But actually, yeah, the more you build, the more 0:18:02.521 --> 0:18:05.041 experiences and even knocks and bumps you have yourself. As 0:18:05.041 --> 0:18:07.401 an investor, well, you know, even with your own it 0:18:07.401 --> 0:18:09.481 comes down to if you're holding the property, if you're 0:18:09.481 --> 0:18:13.001 not flipping or trading that to someone else, durability should 0:18:13.041 --> 0:18:13.521 be at the foe. 0:18:13.841 --> 0:18:18.521 Okay, So durability would mean, for example, fix the holes. 0:18:18.241 --> 0:18:24.081 In the walls, for example, a sheet vinyl for any 0:18:24.121 --> 0:18:26.881 wet areas rather than any kind of panel that has 0:18:26.921 --> 0:18:29.841 many many different seams and adds risk to you know, 0:18:29.881 --> 0:18:33.041 it's an x number of joins as x number of 0:18:33.081 --> 0:18:35.841 extra risk. Water could come in and somehow create damage 0:18:35.961 --> 0:18:39.121 if someone were you know, not caring about your property. 0:18:39.161 --> 0:18:41.881 Okay, So does that mean okay, No, I'm gonna have 0:18:41.921 --> 0:18:43.441 lots of questions that will come out of just the 0:18:44.001 --> 0:18:48.681 one sentence, probably from you. So if I'm buying a property, 0:18:48.841 --> 0:18:50.321 but I want it to be appealing and it's a 0:18:50.921 --> 0:18:55.801 toss as a nice property rather than a utilitarian one, 0:18:56.001 --> 0:18:58.881 does that mean you're saying I mean, what you're saying 0:18:58.921 --> 0:19:01.721 is keep it basic. No tiling. Does that mean because 0:19:01.721 --> 0:19:02.361 that's expensive? 0:19:02.401 --> 0:19:04.561 I guess it depends where you use that. So you're 0:19:04.561 --> 0:19:08.041 sort of trying to balance the type rope of durability 0:19:08.161 --> 0:19:11.521 and keeping on trend and appeal. So there are many 0:19:11.601 --> 0:19:13.521 many products out there now, you know, we import from 0:19:13.521 --> 0:19:15.801 all over the place. So if you want that really 0:19:15.881 --> 0:19:19.081 high end oak timber flooring, there's a vinyl that looks 0:19:19.121 --> 0:19:22.001 like that. You know, you can have the same color 0:19:22.081 --> 0:19:25.321 as the high end woolen carpet and a solution dyed 0:19:25.401 --> 0:19:26.161 nylon for rental. 0:19:26.281 --> 0:19:28.121