| Episode: | E134 |
| Show Title: | Investing in your Future |
| Cast: | Aaron Horne, John McGregor, & Patrick Berry |
| Show Length: | 23 minutes 23 seconds |
This week, John and some other staff from 4one4 Property Co. & RAMS Tasmania Hosted an Investment Seminar at Brewlab in Derwent Park. Whether you were looking at jumping into the property investment space and didn’t know where to start; or have an established portfolio of properties already under your belt, this seminar was one not to be missed.
Listen in as John breaks down the event and passes on some of the Gold Nuggets that were passed along on the evening.
EPISODE TRANSCRIPT
John McGregor
Say to them, Well, look, this is why your plants are important, because then you start to match people that want to help you execute your plan. Yeah. And you’re not just at the whims of, you know, decision paralysis where you’ve got ten different directions that you can go with ten different people saying ten different things.
Aaron Horne
Going, what’s.
Patrick Berry
Going on? Why don’t you’re listening to the property?
Patrick Berry
All right, guys, welcome back to the Property Pod, your weekly engagement into real estate here in the Hobart marketplace. I’m your host, Erin Horn, and I’m joined by real estate agents here at Formidable Property Co, Patrick Barry and John MacGregor. Welcome back.
Aaron Horne
Billy.
John McGregor
Same goes.
Aaron Horne
Glad to be here.
Patrick Berry
Glad to be here. You are. You looking a bit stiff and soulmate. You walked in very gingerly. Your back was very straight. You’re kind of like a board and it’s going on. You like mean.
Aaron Horne
Carrying too many big metal backs going.
Patrick Berry
So what’s happened? You’ve been over to Alice Springs and you.
Aaron Horne
Have.
Aaron Horne
Been Alice Springs.
Patrick Berry
You’ve come back a changed man, broken man, broken man.
Aaron Horne
Right?
Aaron Horne
Finally carrying all the bags and the bikes and everything.
Aaron Horne
Takes my back. Yes.
Patrick Berry
So. But never you learned it today. They in a bike manages a little tougher than you thought.
Aaron Horne
Yep. Apparently they haven’t got it.
Patrick Berry
How’s the weekend?
Aaron Horne
Yeah. No, it’s really good. Parker made finals both days on his bike, so he’s pretty pumped and. Yeah, it’s a really good atmosphere up there.
John McGregor
Yeah. Especially said the ties, the taxi squad was the loudest.
Aaron Horne
Yeah. Like there was, I think it was 350 riders from memory. So it was probably about 500 to 600 people at the venue by the time you count all of the parents, pretty impressive. And that which I in the middle of frickin nowhere is pretty impressive. Yeah, yeah. But yeah, the Tassie team, we all got behind all of the other kids, there was 12, 11 of them riding and just cheering like crazy for it was really good fun.
Patrick Berry
Yeah. You set your savvy far off, Mike, that you asked Park. I like you here while you’re on the track and you’re like, Mom, we could hear you all the way over by.
Aaron Horne
That’s embarrassing. Yes, we could hear you.
Aaron Horne
Yeah, yeah, yeah.
Patrick Berry
It was all a bit mad.
Aaron Horne
Yeah, yeah. But I.
Aaron Horne
Like to think that’s why I made finals, because we really.
Aaron Horne
Pushed that. Didn’t really know. Yeah, yeah, exactly. It was a serious pressure point. And now advice.
Aaron Horne
Is really, you know, it’s going to go well.
Aaron Horne
Peter Foster doesn’t know how to do that already.
Patrick Berry
It always helps.
Aaron Horne
Solid advice.
Aaron Horne
Thanks, man. I wasn’t thinking.
Aaron Horne
About. Well, that’s what I’ve been doing wrong all this time.
Patrick Berry
Well, speaking of some solid advice, there was someone doling out solid advice here in the Hobart area last night down at Brew Lab in Dillon Park. John MacGregor, you hosted a investment seminar with the team at Rams?
John McGregor
Yeah, I guess we did. You know, there was Lewis out there because we sold out. Well, we didn’t actually sell tickets. You just registered. It was free.
Aaron Horne
But sell out sense better than we sold out today.
Patrick Berry
Maybe I had this really awkward bit where it was like there was two tickets left on the Eventbrite thing saying like, you know, you’re at almost like a person, like do we advertise this and run the risk that when people show up like say like.
John McGregor
Only two.
Patrick Berry
Tickets left, guys like don’t miss out. And then when they show up, if people don’t show up, it’s just like, man, they lied to.
Aaron Horne
Us. Yeah, yeah.
John McGregor
That happens. That happens. Hey, like, I know it was done, like, coordinated from the experience. We’ve done this before and involvement. All right. And why be anti like the problem is there’s a huge big anxiety that comes around the ticket sales and it’s a typical Tasmanian thing even for concerts where everyone likes to book at the last minute and they’ll go, Oh, let’s rock up.
Aaron Horne
That’s also the problem. When you offer a free ticket, yeah, there’s no commitment to actually turn up in the night.
Patrick Berry
But that being said, yeah, really, really impressive turnout. I would say 35 to 40 people at least. Yeah. Showed up. And so they’re interested in getting information. How’d you feel it went?
John McGregor
I look, I was really happy with it. I mean, we it it was the first time we’ve done it as a team. And, you know, you always think if your first one, if you get to 80, 90%, that’s a pretty damn good effort. Yeah. And there’s always little tweaks and changes. We go, Oh you could do that little bit better, a little bit better than we’ll put on a couple more and hopefully the goal would be that, you know, if anyone ever registers for our event, it’d be like, yep, the full and fours events.
John McGregor
Yeah, they’re good, they’re informative, they’re, you know, we’re getting to get out. We get what we need, I think to be able to run those and get a name for that kind of event would be great. Yeah, I think a lot of people will put these on and actually make no effort and just expect that just takes care of itself.
Aaron Horne
No problem. So 12 months time booking my state bank anything.
Aaron Horne
Is that.
John McGregor
Side X, you know, kiss. Kiss is performing. Jim It’s confirmed.
Patrick Berry
Last time I saw John perform there, he did The Doctor Seuss so the places you go so I wouldn’t be his first time up on stage there commanding an audience.
Aaron Horne
I’d love to know the support act to an investor.
Aaron Horne
Seminar would be I need is like a three for this guys on stilts.
John McGregor
Cirque du Soleil oh here are here is us vibes.
Aaron Horne
Now.
Patrick Berry
Look it was a really really fun night. It was really cool. Andrew from Rams got up in and out at some advice and then yep, while we were packing up all the tech gear, there was heaps of conversation going on and lots of people kind of asking questions over some really good questions in the in the Q&A. Do you want to cover off on kind of anything that was that was mentioned in the in the.
Aaron Horne
Yeah, we’ll look at the hope.
John McGregor
I think the idea was is that, you know, follow the numbers, not the noise.
Patrick Berry
About it.
John McGregor
Just for the for the investors. And that, you know, there’s a lot of noise that is coming through. But how much of that you know, does that of the news and I like this idea that the media is not there to educate you. It’s there to, you know, draw your eyes and just make you feel emotional. So you look at the, you know, read the articles.
John McGregor
Yeah. So there’s a lot of reality going on around the globe and in the state that’s, you know, that has an effect on things. But how much of that information actually help you? You know, make informed decisions and how much of that, you know, is actually in the control of virtually none of it. So obviously, as best as we can, can we learn to understand what’s absolutely in our true control, regardless of what’s going on around us, so that then, you know, you’re able to make good decisions regardless of any market.
John McGregor
And you can make moves when it’s going up, you can make moves when it’s going down to make movements going sideways. But then you understand what’s totally in your control and that from here on out, you’re not just making whims, go, Oh, I’ll buy that because someone told me to. It’s like, does it follow my plan? You know?
John McGregor
Do you know your numbers and does it work? And if it does, go for it, so it becomes a much better way of enabling you to make good decisions for the future.
Patrick Berry
Yeah, look, those types of stuff in there about kind of knowing the numbers and making sure that you’re not just kind of running on emotion, which I think if you’re trying to get into the investment space, it would be silly to be like, I like Coca Cola, so I’m just going to buy Coca Cola stocks or something like that when that’s kind of is that actually going to help me out in the long run?
Patrick Berry
It’s just I love drinking. It’s Oh, I drink at Old Dawn. So yeah, of course I’m going to buy that. Like, is it really the best way to invest your money? So if you can remove the emotion out of the equation, you’ll probably have a lot more success. The one thing I thought was crazy was the the demographic across it was so broad.
Patrick Berry
There was, you know, some some young guys asking some really valid questions. There were some there’s even a lady asking, like, is, is there an age limit for me to become an investor? Like, am I too old or in my aged out, I was like my.
Aaron Horne
LOVELUCK Yeah, yeah, yeah, yeah.
Patrick Berry
Basically if you want to want to get in that space, like, yeah, come and have a chat with us. So it was, it was a really interesting when she ask that question, I was like, it’s such a simple question. But yeah, I’m definitely probably thinking, Well, John, turn it on his head and said, Oh, if I’m 16, can I?
Patrick Berry
Yeah.
John McGregor
I said to Andrew, can I get a loan? He’s like, you know, yeah, technically. I mean, you’d be amazing if you, you know, you had $200,000 as a deposit when you were 16. That’s a pretty damn good effort. But, you know, the thing is.
Patrick Berry
Influences like.
John McGregor
Any time is fine.
Aaron Horne
Stranger things have happened.
Aaron Horne
Yeah.
John McGregor
So, and I really like the humility of this couple the questions too, because it’s that thing where you know everyone’s that they’re different cycle and sometimes putting on these events is tough because you’re trying to find information that is going to be useful for someone who is a quote unquote expert. Someone is just starting up. And that was sort of what we try to do is, again, trying to build a framework of questions to ask and things to revisit when you leave is that, you know, no matter where you are and what your journey is, revisit this now because that way, especially as the market does shift, is like, well, now’s a good time to
John McGregor
reassess your position, you know, is it, you know, time to buy, you know, accumulate? Is it time to sell? Is it time to just hold fast? You know, are you maximizing your returns as best you can, getting all the tax advantages, you know, even when it says we are so when’s a good time to buy? And was a good time to sell, you know, even on the sale front, would you say, well, if your properties are done, get rid of it.
Aaron Horne
Simply.
John McGregor
Like if it’s high maintenance, it’s a low return and there’s no potential for capital growth. That’s a bad investment. But sometimes we have this sunk cost idea was like, now I’ve got to hold a hold onto it. It’s going to it’s going to come good. It’s going to come.
Patrick Berry
I’ll polish it into a diamond eventually.
John McGregor
No, mate, you’ve got.
Aaron Horne
To kind.
John McGregor
Of kind of, you know, just be invested right there.
Aaron Horne
Yeah. So, yeah, yeah.
John McGregor
So, you know, this a good question for, you know, to ask in from you know obviously was disclaimer that we’re not you know, we’re not going to quote ourselves to say we have all the answers and, you know, we make emotional decisions, too, you know.
Aaron Horne
And sorry, Jungle Book, pin it quick. This, right? Oh, you did. What? Did you miss it?
John McGregor
Sorry, though, the Jungle Book.
Aaron Horne
Yeah, it doesn’t have it. It doesn’t know where it is. It doesn’t even know with my $800 pit. Oh, today people don’t like it. You have to it. We actually really wish if we had to do it wasn’t.
John McGregor
Sorry but so I like about.
Aaron Horne
Them.
John McGregor
Yeah. I’ll, I’ll be able guy.
Aaron Horne
That is lost time.
John McGregor
But aside from you know if you do like like all of us you know yes my emotional buy a pin you know it at least if it’s going back to try and get that second advice from people that can help you help you make that decision before you make one the otherwise might regret you know we do regret some regret every house we ever sold regret every house we ever bought.
John McGregor
And a lot of the time they’re not strategic decisions. You know, a lot of the time people become experts in, you know, you know, in upward markets. But most of the time, which is lucky.
Patrick Berry
This.
John McGregor
Time. Which is lucky. And I was asking Erin Barry, I went to the guys at the mall millennial money that.
Patrick Berry
Yeah I listen to that yeah I didn’t mind your little intro as well in your American accent and they, they hit you up with that. Yeah, that was a very interesting listen.
John McGregor
Well well I asked them because obviously they are buyers agents exclusively. And, you know, I asked them, how do you how do you negotiate a deal? And in his answer, he’s was very much he’s this old, he’s just straight the numbers. It’s like he’s got his plan. He knows what he wants, what he wants to buy. And if the number stacks up, he makes an offer.
John McGregor
And then if they offer doesn’t land, he doesn’t care. So because that way, then there’s no emotion attached to it and they’ll buy wherever, wherever makes sense. And the handy thing for him is it will then all all these properties just become a, you know, a vehicle for, you know, his financial future. And he doesn’t get wrapped up in the, you know, the the the nuance of the the maintenance, the management, how that affects tenants and all other elements that you probably should otherwise just let go of and let a team manage for you.
John McGregor
Yeah. So I thought that was a, you know, a good reference point for, you know, a professional and how they operate. And we’re trying to not there’s not enough time to talk about how you do it, but we could certainly cover of all the things that what goes into how professional a professional thinks and how they map, you know, their strategy.
John McGregor
And so that was the goal. So that once they’ve got those base references, now we can source that information to help them, you know deep dove into further.
Patrick Berry
Yeah yeah and hopefully you cover off some really good stuff and then you had the conversations afterwards led to some you know let’s meet up again and we’ll chat more about this then we can provide you with with some of the things that we’ve talked about you mentioned so I’m mean from property ology a few times in your speech and you kind of use the as a brand chocolate all Yeah milk chocolate that’s name yeah right.
Patrick Berry
Yeah, yeah. So there’s a bunch of stuff in there that yeah. It was, was very valuable. We’ll, we’ll try and put the seminar together and yet create access to it to, to some probably pop listeners if they’re interested as well. Yeah.
John McGregor
It’s cool having to bring all the cameras. Yeah, this comes together.
Patrick Berry
Only time will tell, my friend. Time will tell.
Aaron Horne
If I notice we’re not holding any promises.
Aaron Horne
To see how.
Patrick Berry
We go see how we go. Oh, well, straight up.
John McGregor
Like one of the people came up. The couple came up to me and they want to buy the first investment and they’re like, Well, what if I bought it? Because she. Well, she asked, okay, how do I find a cash flow property right now? And to our answer was, well, if you will, but if you want to split, she wants to buy in Hobart and then not put it you know I said well you bought have to put a really sizable chunk deposit down to have it to you know be cash flow positive and which I suppose as we know it’s the idea that putting you don’t have to keep putting money in your pocket
John McGregor
to hold that property is actually paying a dividend. You could say. And the answer was maybe Hobart isn’t the right move for them right now. Yeah. And maybe with their particular goal, they need to consider looking elsewhere because Gate Broken Bridgewater used to net us 8 to 10% easily as a gross yield. But that’s even those suburbs have completely changed in Hobart because even though the, you know, rents have risen in a big way, so have the prices.
John McGregor
So the, you know, you know, if you’ve got 100, 200 grand to work with right now, you know, 4 to 5% doesn’t seem as exciting. Yeah, I’m sure there are other parts around Australia where that can, you know, you can benefit from that. Yeah.
Patrick Berry
We only mentioned on the podcast last week Toowoomba or oh yes. As Simmons mentioned you know look yeah. Look outside your local area and you can definitely find some gold out there. Yeah.
John McGregor
Absolutely. So it was there was I suppose part of the reason why those, you know, the talks are great to just get people to think about what they what they want. And then now we can have those, you know, there’s yeah.
Patrick Berry
Start the dialog.
John McGregor
From that bit of conversation. So that’s obviously the, you know, the funnest part is the work we can do with people after these events. But I think though it’s really important they actually do host a good one.
Aaron Horne
You know, so.
John McGregor
If anyone’s at the feet of first.
Aaron Horne
Just.
John McGregor
Put food out there.
Patrick Berry
The beer at the start wasn’t too bad either. I didn’t mind that when you come up and said, I want a beer, it’s please.
Aaron Horne
Oh, it’ll never be.
John McGregor
Yeah, but one of the things too, I know, like we, you know, we talked about is when to sell and the whole idea of a again is what are some trends and what’s in your control. And I guess there was a thought, well, now we’re leading up into the warmer months. Is that actually a positive time for people to consider moving on their portfolio, of which, you know, we had one client who in his perspective and his idea like we just said, don’t sell because there’s money to be made sell for a good reason.
John McGregor
And, you know, one of our clients that can talk is like, well, look, the value has doubled over the last eight years since I’ve held it. I’ll move it on. I don’t need the extra maybe 10%. That’s their look. My assets doubled. Let’s get rid of it. I’m going to move that into, into, you know, MySuper and other things that had a really good tangible reason to move on his asset.
Patrick Berry
Whereas you also mentioned a story about someone that you know that has a place up in the Glebe.
John McGregor
Yeah. So that was a mate of mine. He there was asked sold next door to investment property where he lives is still in the Glebe he built there but I think that the, the house next door to his it sold for like 600 or 650 at the time. He’s like sweet let’s cash out, let’s, let’s do this journey.
John McGregor
Can we catch up like. Yeah, sure. What we discovered though is that there’s that thing. Whereas he was outside of the, the six year tax exemption for a private residence to investment, forgive me the exact wording on it. So it meant that he could be selling it for his 620 or 625, but he was going to get absolutely slammed with tax.
John McGregor
So in his head he was thinking, oh, gosh, I’m going to have like, you know, 400, $300,000 in my bank account. Realistically, I was more close to 250. Yeah. So all of a sudden it didn’t seem exciting. So we spent an hour effectively me nudging him to say, Mate, maybe this is probably not the best idea without directly saying it.
John McGregor
And at the end he said, Well, John, it sounds like you you don’t want to sell my house. It’s like you’ve got a completely wrong I really want to sell your house. It’s the only way I get paid. I just don’t want you to sell your house. Yeah. And then he understood because what happened was, is emotionally he was like, sweep money or just throw it into buy into my mate house coup.
John McGregor
But strategically, he was losing a heck of a lot of capital that he could otherwise have access to just by cashing out and getting taxed to the hilt. So he didn’t have a good plan of why he was going to sell that property. And and that was because, you know, we’ve seen so many people do it now. Like, I just really want to help the, you know, say, hey, mate, you do realize there are some consequences if we just cash out now.
Patrick Berry
Yeah. And look, you could see other players out in the field that just kind of. Yeah. See those dollars on principal bailout plays on the Glebe. Yeah, I’d love to have that kind of in my swag as a listing like Let’s Go.
John McGregor
So yeah, and that was the couple that came up to me when, you know, we’ve talked about building the team a lot, you know, they’ve had they’ve had three people, three or four different people giving him four different pieces of advice and they just didn’t know who they could count on. And look, which is a difficult thing because everyone’s right in one way.
John McGregor
But again, that’s saying to them, well, look, this is why your plants are important, because then you start to match people that want to help you execute your plan. Yeah. And you’re not just at the whims of, you know, decision paralysis where you’ve got ten different directions that you can go with ten different people saying ten different things.
John McGregor
And, you know, they run the risk of just never buying an investment property because they’re always searching for new information, too much information that the it’s becomes impossible for them to make a decision because they’re going to be second guessing themselves all the time.
Patrick Berry
I guess it’s that thing of cutting out the noise and trusting the numbers like an if you can find someone that can give you the right advice with those numbers, you close them back up.
John McGregor
Yeah, exactly. Yes. It was so nice. I suppose from our front to is to well immediately cos we just said well now you’ve got a real estate agent status, that was a bonus. But to be able to hopefully as we fill up with these people that we know that we can’t give them everything they need and to be able to put them in touch with the people that we rely on, people that smarter than us, obviously, to help them fill those gaps.
Patrick Berry
Yep.
John McGregor
Yeah. So it’s it’s really nice of those investments where this is. It ends up being a very much a give back exercise. And the I know from a couple of the staff might say, well, you know, what are we getting at? It was like maybe nothing today. You know, don’t look at that. We’ve we’re getting we’re putting these on as if we’re going to sit there and all of a sudden get ten deals out of it.
John McGregor
That’s not how it works. But I love the idea of us being able to build that trust with people over time and that that’s a constant resource for people to revisit to.
Aaron Horne
I think it just forms part of four and four strategy. We’ve always been about educating people first, and that’s what this podcast is for. That’s what I blogs for. This is just another alliteration of that, another version of what we do to help people understand the market better.
John McGregor
Well, I think Joe touched on to it like an investment specialist where she said our our business is quite transparent with our clients in terms of all the technology. They have access to the information and communication. And I think also, too, there’s probably in large part our intention, because I don’t see any of us, is purely snake oil sales people that are just really in it for for personal gain.
John McGregor
Yeah, obviously we have to make sure we make a living, no question about that. But I really love the, I suppose the the the values that we have in this business, which is the fact that we discourage a person to sell because we’d rather miss the commission in in lieu of them having a better outcome that may not be a result of selling or buying.
John McGregor
Yeah. I mean, we had this dead and I listed a property where the couple had fought. You were going through separation, and then they called up and said, Actually, we want to stay together. And we’re like, he’s like, we’re so sorry. It was it was like, man, what are you talking about? Like, this is the absolute best outcome because we sat with him and said, You sell this and both of you are going to be in worse properties.
John McGregor
You know, you’re going to both hate it. So we couldn’t obviously encourage them to get back together. But if they sold where they are, they both can be in a really, really worse off situation. So it was, I guess, enough for them to just think, think about before because we could have just got to the market, got it sold, got on the contract before they even had time to really think it through.
Patrick Berry
But why did they rekindle their love? That’s a little cupid. Zara just shot on down. John. John was on the roof with his little.
Aaron Horne
Oh, yeah, we do. We do it, we do it. We get the love doctor.
John McGregor
Yeah. And again, you know, that’s and that’s the beauty of these kind of, you know, events, because at the end of the day, like, we’re learning something. It forces me putting it together. It forces me to just spend what I must. It’s been about 15, 20 hours piecing it all together. It’s going to be useful.
Patrick Berry
That’s how long I thought it went for a while. You were talking.
Aaron Horne
Oh, I’m not sorry. I should’ve said our session. Like, maybe. Look at Chris. You’re up next. Where is he?
Patrick Berry
That’s all right. Well, 10 to 45 into a tight five. We got this.
John McGregor
We got this. But but again, to let the presentation, you know, because it was, you know, I didn’t give myself enough time to rehearse it all. So there’s bits where it gets trails off and lost a bit. So yeah, next time we’ll be better again.
Patrick Berry
We got this, we got this. Look, if you went back and listen to the first property part and you travel through the adventure, it would definitely way more relaxed. Now, I would definitely know that percent a thousand times better than we did when we were like.
Aaron Horne
Hello, I’m John and I’m hung over indeed.
Patrick Berry
But yeah, look, it was a cracker. We didn’t plan on talking the whole show about this today, but yeah, if you were at the investment seminar and you want to centers and feedback, that’d be super if you weren’t there. You got a little taster of of kind of what was covered. Thank you to Andrew and the team at Rams for collaborating with us on the investment seminar.
Patrick Berry
Andrew did a really great performance as well. Performance? What’s it called, a presentation station.
John McGregor
Yeah, yeah.
Patrick Berry
It performance sounds like a song and dance. Like he got up and started singing in a in a ram costume or something.
Aaron Horne
Yeah. That would be fun. I would, I would.
Patrick Berry
I would actually pay to see that one wouldn’t be a free ticket.
Aaron Horne
I mean he put it into performance right there.
John McGregor
That’s 30 bucks. Yeah. Well, that also too, you know, thanks to property ology. And I looked up because obviously I was using a lot of the research to piece it all together as well. So, yeah, I just want to give a shout out.
Patrick Berry
Aaron Horne
Hot summer every June and every Tuesday. Yeah. But batter, batter, batter, batter. All right.
Patrick Berry
And pats back. Still really sore. So thanks for your input. We’ll see you all next week. Thanks, guys. Like you have been listening to the property both.
Aaron Horne
Recorded and.
Patrick Berry
Edited by Foreman for Media House in conjunction with the full and Full Property Code.
John Mcgregor
This podcast is general information only and the thoughts of views expressed is the opinion of our panel and listeners should always then use their own investigation into any topic we discuss to ensure they fully understand their own situation.
John McGregor
It does not constitute and should not be relied on as purchasing, selling, financial or investment advice or recommendations expressed or implied. And it should not be used as an invitation to take up any agent or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.
