You're listening to the Weekend Collective podcast from News Talk, sedb Nious, Chad, Who We Were, Bye, Who We Can Cancel?
Had Bond to Bey, w Bond to be.
Hi.
Yes, welcome back to the Weekend Collective. I've got to give top marks to Tyra Roberts, my producer. So far tire, you're killing it on the music in a good way. I supposed to. That's so bad you killed the show. Welcome back on Tim Beverage. This is the Weekend Collective. And by the way, if you miss a Paddel, great fun there with Mark Kreisel and Paul Spoonley covering a lot of topics. If you miss any of the hours,
then please go and check out our podcast. Look for the Weekend Collective on the News Talks it be website or iHeartRadio. And now it's time for the One Roof Radio Show. Actually today today we've got two new guests. Also for the Parenting the Parent Squad and today for the One Roof Radio Show, we're joined by a new guest. So I'll introduced in just a moment, but just to give your heads up on what we're going to talk
about and as it is, that question about renovating. And of course, if you are a home owner and you've got a house and you want to renovate it because you are going to be living in it's that one question. There'll still be questions you might ask yourself about whether you're overcapitalizing or not, or should we do that? But then again, we're going to limit it for the next thirty years. Who cares? But there is always the question about when you can I mean renovating. It's not cheap.
Building is not cheap. Nothing to do with property is cheap, although maybe buying it's a little cheaper than it was a few couple of years ago. But can We're going to talk about renovating, and I want to know from you how have you budgeted for your renovation and the decisions you made and what was the key to keep it's something that you could live with basically, or someone else could live with in the event that you're doing
up to sell it. So the simple question is, can you do a significant renovation for under half a million dollars? Oh gosh, a lot of money, isn't it? And how can you guarantee you'll improve your returns as a result, Because you might buy how often have you heard let's buy a door rapper, and you buy the door upper and you do it up, and you go and think, what's spent way too much on that. I never had any idea that I would have blown so much money.
So we'd love to hear your have your stories as well on the Key to a Successful Renovation eight hundred and eighty ten eighty text nine two nine turn Joining my me. She is a new guest on the show, and she's a real estate investor. She's a property coach at Wolf Property and her name is Elsa Wolf, Elsa gooda.
How you going, Hi, Jim, Thank you so much. I'm very excited to be here.
Well good, Hey, how long have you been in the property investment game?
So that's a great question, so I thought i'd do a quick culch before I came here. Actually, so for the best part of twenty years, I've been investing basically when I was a toddler.
Can I no? Oh, yeah, of course I should have said that first. Yeah.
No.
So from when I was about twenty two to twenty three, I started vesting part time, and that was while I was working for a major bank, a main bank that was the light bulb for myself was that.
Because also when you're working for a bank, you have a good access to a decent interest, right, I mean, if you do work for bank, you do get a discount rate.
Yeah, I was smart, definitely, So staff discount fifty points, you know, so point five of a percent generally speaking, well, at least it was in two thousand and seven. Okay, So yeah, So about eighteen nineteen years ago started investing whilst a very helpful client showed me the way an accounting partner, so that was really enlightening. And then ten years ago I realized actually July twenty fifteen was my
last salary paycheck. So I've been investing full time for ten years and coaching for nearly five.
What was it like doing your first deal? And that's great, I mean it's good to have someone sort of holding your hand, isn't it. Who knows a bit, But what was it like for you actually biting the bullet and doing that first deal?
Oh goodness. Apart from that first conversation where I saw the profit and lost by this accounting expert, it was really feel my way as I went. I lived in Hamilton for the corporate team of a main bank at the time, so I did that classic Hey, I should buy in my neighborhood. So fortunately, long term wise, that worked out. Unfortunately at the time, it was about eight months before the GFC hit in two thousand and eight,
so I learned that very abruptly. I think my ignorance at the time is probably what saved me, to be honest, because I actually went into an immediate situation of negative equity and negative cash flow. So what that means is the loan I had, which was ninety five percent that was the standard at the time. Would you believe that has never been repeated for obvious reasons. And negative cash flow, So the cost of my.
More if you were subsidizing the whatever rent you were getting out of it, you were topping that up exactly. And the property price had gone down as well. And see you're thinking, I've dug myself a hole, and I'm just gonna I guess you just have to keep going until sort of get above ground again, do well.
I was on my oe, so I sort of removed myself a little while very briefly after. It was an investment property. The first four I bought were investment properties, so I guess I was a rent vestor, which is a popular word now, there was no name to it back then, but basically lived in a family house whilst starting to invest, took off with my boyfriend at the time to have and the UK and just kept sending
pounds back to top it up. I didn't understand the gravity of it, but there were some scary lessons along the way, So.
I reckon, that's the kay I reckon. A lot of people I speak to who have got into the high stakes games of whether it be well and sometimes in the case of other business adventures, a lot of people point to the fact that they'd glad they didn't actually know the lessons that they subsequently learned, because I might not have got out of bed in the morning sort of thing. Do you look back and go, gosh, it was so good that I knew so.
Little exactly and learned the stripes. Earned my stripes the hard way, basically, and early on, early on, there was definitely a version too, in a different way that was not cash flow. Actually, that's part of the journey of learning I've been on to lead to the methods that I exclusively deploy for myself but also teach my client. So that's the type of person I attract as a
property investor. They know I'm tunnel focused on manufacturing, you know, creating high gross returns through adding value through renovations, because negative equity basically, when your loan to the bank and your costs well, sorry, the loan to the bank is higher than the value of the asset, basically you have no asset.
Yeah, So is that sort of is that sort of instinct wanting to renovate? Does that come from the fact that that's one thing you can do? Okay? The property for instance, I mean, how many people bought properties back in twenty twenty twenty one, and we know the tragic tale of how tough times are high interest rates. I mean there's still you know, they've recovered a bit, which
is probably a relief for a lot of people. But is that really why is that your main strategy actually to buy properties that need a bit of need a bit of work or could yeah, we'll carry on.
Yeah, So I have it's actually a trademarked process I have. It's called cash flow hacking, and it's basically the culmination of I guess these eighteen years of some wins, some horrific mistakes and lessons that have got me to where I am. So I believe in achieving, forcing appreciation the value of a property as soon as I purchase it or my client.
So you're all about making an improvement to it, all about it, all about it exclusively. They're not somebody who just buys. So the last thing you're doing is flecking a property which people will be pleased to please to hear, because that tends to trigger people a bit.
Oh no, I'm all about holding. So it's called the BURR. It's sort of an overlay to the BurrH method by renovate, rent, reff finance, repeat. So if you think about all of the benefits of investing in real estate or property, the expectations if you want all of the above, right, we're talking cash flow, ultimately getting the rent or the income to exceed all of those expenses to create ultimately a
passive income for retirement or whatever you want. Capital growth which equals wealth over time, leverage which is to be able to add value to the property to then purchase something else or invest in something else, and you can only do that through property. And then the other one is land, so you have new Belds townhouses lots of great benefits to warranties, that sort of stuff, low maintenance, but without the land portion, which is exclusive to existing builds,
those are all of their benefits. So without the land, remember land is the finite thing we have here, right, so if you have land, you get the future benefit of intensification.
Do you think that the do you think that the idea of renov is going to become because it does feel. I mean, I've I don't have any investment properties, but I've hosted a property out for I don't know, three or four years now, and you do get a sense that there was a time when people were right into renovating, and then it became the no one would bother because you simply buy it, hang onto it for a year or two, and then you could sell it because the
property market was going crazy. Do you think where's the property market at? Do you think in terms of the number of investors who would buy with an intention to do something with it and then have that improved our set to sell.
So depending on what your objective is or your outcome is will determine the strategy, and you have to pair that with your own risk profile. You know what kind of risk are you willing to take? But different It's called the property cycle or the property clock, if you think about it as a clock. There are growth stages
and there are a decline of value stages. Where we are at the moment, we're sort of around that six thirty seven o'clock if we've bottomed out, we've gone through this period of decline, we're evening out, and we're sort of poised to grow. We're not in that rampant growth. So if you were to buy any property and think I'll do something and make some money, that's not going to fly just yet. You have to be calculated.
So don't get your hopes up about quick growth at the moment, regardless of what you do with it.
Interestingly, I mentioned to Cameron Bagriy economist on my way here, and he called me, called me back in on the of the full drive here and he sort of said, hey, look, it really is about five percent that seems to be the potential growth for this year. Five percent of value growth. Organically, we're not heading into a rampant growth stage.
That's because our economy is a bit stuffed, really, isn't it? To put it frankly, isn't it.
Yeah, I mean there have been many many changes. It's all looking brighter. You know, the OCIA came down by fifty points to three point seven five on Wednesday, and you know, we've had multiple decreases now, so you know, the perception of businesses in the public is more positive than it's been for a long time. But we've also had several i would say short, short term adjustments that
need to be corrected. So the Residential Tenancies Act RTA thirtieth of January a lot of changes to notice periods, you know, if you want to give a tenant.
Notice, so it's friendlier for investors.
It is more friendly so you're not stuck with a lousy tenant. It's friendlier as a landlord. Costs are coming down, we're expecting them to come down, but we've also had a lot of costs ramped up in the recent years with healthy home standards, which definitely are a great step up for us. Our housing stock is incredibly old, so that therein lies a massive opportunity for value add or renovating based you know, might be investors or home buyers.
Okay, tell us what was your first renovation then? What did you what were you looking for with the property, what did it look like, what did you intend to do with it, what did you end up doing with it? And did it work?
Yeah?
I mean ultimately it would have worked if you did it long enough time.
Yeah.
So with that first property, it was a standalone house and Hamilton and Glenn View, which I actually still love. That's a great it's a great suburb. And the scope for the renovation was forced upon me basically through the Global Financial crisis, so GFC if you haven't lived through that yet. And basically it was a standalone house. Again, as you said, I bought it, had no idea what I was doing, did not think too much about the extra costs and cash flow until they hit. I also then coupled.
With what condition was the house in at the time.
It was retro sort of had that asbestos seventies.
Oh my god, Okay, asbestos not.
Retro, but yeah, so the eighties vinyl that had the horrific diamonds and flowers patterns, but was also asbestos. It actually had a small thirty square meter house or building at the back.
Did you buy it thinking you were going to renovate it?
I knew it needed some work, but I had no plan. I didn't know what that really meant. It was actually my boyfriend at the time he sort of said, hey, look, my uncle's an electrician and let's do this to that. And I got my head into that space. It was a standalone house, three bed, one bath, but there was a little not a separate dwelling part like a sleepout sleep out at the back, and it was one dwelling.
And as I suddenly realized after a few months, hey this cash you know, my revolving credits which I had initially was disappearing. We decided, hey, we need to talk to counsel. We ended up getting a building consent to separate those into two dwellings.
So was it the old the traditional quarterer eco type of thing, which was.
Exactly a nice flat section, so very tidy brick currogantius.
How many of those going these days? Are they?
I know?
And it was really great because that was a method or a means to create cash flow that would alleviate some of that that chop up whoe. I mean, I was, you know, in my second job out of UNI. It wasn't a huge salary, and I was struggling so we were forced to come up with solutions, and I think that's always been part of my psyche since then. Every time I've gotten to trouble or stress, I've had to just sort of force myself to come up with a solution.
Coupled to that was the issue sure that I was a young I was a young landlord, and the tenant initially had both the front house and back house, and I just decided to stop paying one day, and so I got into five thousand dollars of arrears because I was easily the one who could push to the bottom of that list.
This was Hamilton project, wasn't it? And Hamilton Yeah, anyone who's listened to this show, just briefly is the running gag with my former co host Tim Rocksborough was years ago when the property market went nuts. As a lay person watching the property market, I remember looking at Hamilton going, oh, yeah, that Hamilton. I reckon it's going to go sometime. And I just sat passively and watched Hamilton go nuts. Because Hamilton did go.
Twenty twenty, twenty twenty one. Every month that we're up ten twenty thirty thousand, do you know the same property, Yes, you're absolutely right.
Yeah, Look, we want to take your calls as well your experiences on renovating, but also what is the first thing you renovate if you're if you're an owner and if you're a buyer, do you want to see something renovated or do you actually look and think, well, here are some key things. I really want to say there's some room room and me doing some work for them, because there are certain things we know expensive I think
kitchens and bathrooms. But if you happen to want to reline and do a bit of plastering and painting, that's probably a sitter, isn't it. Anyway, we're going to take your cause as well if we'd love you to join the conversation. My guest is Else a Wolf. She's a real estate investor and coach at Wolf Property and we'll
be back in just a moment. News talks. But you know the number eight hundred and eighty ten eighty text nine nine two, And I guess the key question is do you think that along the lines of what Else has been saying, that maybe the way to make money in the market right now, because it's not going to be going gang buses if you just buy it and don't do anything. Is that the secret to making money in the property market. It's twenty two past four News Talks, b.
Song, Hell the Fleen, What for You Nothing.
Cally's Welcome back to the One Roof Radio Show. I'm Tim Beveridge. My guest is Elsa Wolf. By the way, she is an expert at basically doing something with a property. You don't just bite sit on it, renovate it, add some value and then turn it into an asset that you'll be happy that basically you bought. So if you've got any questions, then Elsa is the perfect person to give a call, and you can do that right now
in eight hundred and eighty ten eighty. And also if you've got the benefit of your own experience, because one of the simple questions I want to ask Elsa is where's the Okay, there's two ways to ask this. One is where's the best place to spend your money on a proper property? But I'm going to start with where's the easiest way to waste money on a renovation?
That age old question, so it's it's I would say the most expensive risk is if it's an investment property, which is actually how I focus is basically projecting your own desires and wants, and usually those come in the area of kitchens, bathrooms, and fixtures. You know, So the fancy chandelier or the beautiful dining table light that was really unnecessary, high spec.
Causing it, don't fall in love with it.
Don't fall in love and project yourself into it. Yeah, when you renovate, it needs to be suitable for the place and who's most likely to live there.
Did you find that when you started doing this? Did you was that an instinct you had to resist yourself, because it sends me that would be the most natural human instinct that you have to fight against. It's like, you're not living here, it's for someone else who's going to live as a tenant.
I mean I started out fairly broke, so yeah, so you.
Basically were like, we're not getting in the chandelier anyway, no chandlier in the bathroom.
Right, But actually, yeah, the more you build, the more experiences and even knocks and bumps you have yourself. As an investor, well, you know, even with your own it comes down to if you're holding the property, if you're not flipping or trading that to someone else, durability should be at the foe.
Okay, So durability would mean, for example, fix the holes.
In the walls, for example, a sheet vinyl for any wet areas rather than any kind of panel that has many many different seams and adds risk to you know, it's an x number of joins as x number of extra risk. Water could come in and somehow create damage if someone were you know, not caring about your property.
Okay, So does that mean okay, No, I'm gonna have lots of questions that will come out of just the one sentence, probably from you. So if I'm buying a property, but I want it to be appealing and it's a toss as a nice property rather than a utilitarian one, does that mean you're saying I mean, what you're saying is keep it basic. No tiling. Does that mean because that's expensive?
I guess it depends where you use that. So you're sort of trying to balance the type rope of durability and keeping on trend and appeal. So there are many many products out there now, you know, we import from all over the place. So if you want that really high end oak timber flooring, there's a vinyl that looks like that. You know, you can have the same color as the high end woolen carpet and a solution dyed nylon for rental.
Well, to be honest, I mean I think the solution dyed nylon people swear by that.
Anyway, exactly, I mean fibers.
If you've got the wool carpet, people will be down with, will be jumping out, so carry on. Sorry. A few other key things about where you should not waste money or.
You know, one really basic one for a rental property is, you know, if you have a set you a stand up oven. Let's say you know, something is a tenant somehow breaks a stove top. You know, if you have a combined stovetop with oven. Okay, Well, the cost of getting any trade to cite these days is you know, one hundred dollars plus just plus their expertise and materials and travel and exactly.
Yeah.
So okay, so say you're fixing one element, the cost to do that could be three or four hundred dollars, when in fact you could get a brand new stovetop for less than that if you had the separate top.
Okay, so separate applants is basically wall oven and.
It's and a hob yes, as separate components. So if they're integrated into that kitchen design in built oven, separate to the stovetop inserted into the bench. If something breaks, you know, replacing either of those could be two fifty to three hundred and fifty dollars. If you're replacing that whole unit could be seven hundred plus. But it's still so you have to work out, Okay, what could happen and how do I hedge that or how do I come up with a plan that makes it cost effective if it happens?
Are you always most of your investments are they aimed at providing a property for a tenant and income because there would be people who would be who'd be wanting to renovate because they want to sell that to someone who's going to live in it. As an owner, is that a big decision for you to make as well? Like am I selling? Am I buying this to tenant? Or am I buying it to do up for someone else's home? As an owner?
Is that a big different, very different, very different. I think with the one roof example listening today, that's very much an owner occupy a type purchase, which we'll get to. So definitely it's about what's appropriate and what's the purpose. You know, if I move into a home, I do have different expectations. I want high end appliances. I know how I will treat those. You know, It's different from enlisting the help of a professional property manager, which is
absolutely what I do. I'm therefore one relationship removed from who lived and lives in there. Ultimately, yes, we credit check them, et cetera, but I don't know them.
Okay, we want your calls. Where do you want to where would you spend money on a renovation? And actually, if you're buying a if you are investing in property, because this is probably the journey I've got to go on. Is I always imagine buying a property with the mind to renovating it to sell to someone who's going to own it. And that might be a chink in my armor actually on that one. But anyway, let's take some
calls on that. Where with Elsa Wolf, she is a real started investor and coach at Wolf Property.
By the way, how do people get in touch with you through my is it through my Instagram? Which is Wolf Property Coaching? Or yeah, so Elsa, I l s E. Wolf with an otherwise Wolf property Coaching dot co Doin.
Said, excellent, Right, let's take some calls Andy, get a, Yeah.
Get a. What I found is getting someone that's really reliable and has a very good capacity to source materials cheaper than yourself.
Are you talking about the trades people?
The trades people, Yeah, well that and I think that's the key. That's the cornerstone of cheaper, cheaper renovations and and and a team that will tear it around, really fuss actually that and that's what they specialize in.
That's a really great point. And the actually else because obviously someone who's got a few years experience at this would you must have a team of people you know are going to be doing the job for the right price, effectively, good quality, etc.
And confidence. Right. So for my own portfolio and my investors, we invest from Fungaday right down to Dunedin, and I call them power teams. And for a very good reason. You need a power team that can be extremely efficient, that you can rely on, that you can trust. Especially most investors I know at least invest remotely. You know, they live in Auckland, they invest in christ Church for example. You can't be eyes and feet on the site every day. You need to know you have a pre vetted team
who has your best interests at heart. And of course, yeah, absolutely you're right Andy, having materials and those great discounts, and same with us. We want we want our developers discounts at our kitchen manufacturers because it makes all the difference.
And are you an investor? Or? What's your what's your mean?
I was quite a quite a big investor back in the day that it was when you could self certify your mortgage in London. You didn't even you didn't even need to go have any checks on the bank. It was self certification. I no, I think I got up to one hundred and fifty properties over there, But everyone that I did was a do rapper, apart from one that I went in and got a major icee old discount. If I buy fat any of them flat, you're going to drop the GST.
Actually, Andy, can I ask you how did you make how did you when did you start to make some serious money from as an investor? How did you start off?
To be honest, you've got to be in it for the long term. It's not a it's not like you can flip them. But you know, I'm the ones that you do up. You know you're looking at you know, the rental needs to cover your more, you know, the mortgage on it. So as same as mortgage prices go up, it's a bit gets a bit weird when you get exposed. So yeah, I did, I did. I did slip a lot and just I found that, you know, doing them up and flipping them was a quick way to make some money.
Did you ever do you get stressed about it? You sound like.
I was. I was working for an investment banker at times, so a bit like you're on the radio. Yeah, yeah, So you know, I had a really good, amazing income.
Worst ever renovation you ever.
Did on my own house because I did exactly. I did exactly what she's telling you not to do. You know, It's what.
I think, if it's your own house, you don't need to do Lino on your in your bathroom.
Though, no, no, it wasn't it, you know, you know, in sorry and being quite a bit large property and I just went too far, you know.
And yeah, mate, good to hear that voice of one hundred and fifty properties.
It's a heck of a lot, A heck of I mean, the self certification is a world I've never lived in. I yeah, I'm blown away.
Actually. I mean if if you there were times, there have always been better times to get and I know you're about to disagree with me, because most property there's never a bad time to get into property. But there have been times which have seen you know, exponential growth with the doubling of prices every eight years, and that model has probably changed a bit more male money's properties. Still it's still expensive, isn't it.
Well, actually, this is something that Cameron and I were discussing earlier as well. It was just that, you know, will those historic growth rates, you know, the last thirty years. We know that history is not indicative of the future because there's so many different changes and impact, but you know, will that fundamentally change Since COVID people are more into remote living. You can still have the big corporate salary
but not live in Auckland. Does that mean those growth patterns will contin you It's yet to be seen.
Yeah, I mean I've discussed this with a few property people about that. When we've seen property growth back in the John Key days and there was always this heavy element of fomo. We had high immigration, and I asked one of our guests a while about about, you know, we had fomo back there on top of immigration. Now we've got still very high prices, but we had the cheap,
cheap interest rates. And I worry generally that the property markets not really going to move a lot because our economy just isn't robust enough to support the value that's locked in on the market.
It's exactly I totally agree with you. There's only so far the prices can increase before they pull too far above the increase of incomes.
And I guess it just means how much slack is there in the market now and how long it plays out. Is that you're sort of feeling about.
It generally, Yeah, it's more about adjusting the strategy to that cycle. Stage. Flipping is becoming extremely popular. I get approached every day by wholesalers, you know, basically someone trying to get a cheap cash price on a motivated vendor, someone who didn't sell aduction to try and flick it to myself for a margin, you know, to one of my clients if they can work out what that looks like. So there's a lot of that that what do you
say to that. It depends on who they are. There's definitely that they definitely are a part of the fabric of the market and of the stage in the market. But there's you know, you have to be very careful. FOMO is one part of it, but you have to be calculated and it's very easy to lose money.
Okay, I got a text here which I think is not part of your ballpart because if you build, you build, renovate for long term. But this person says, what about what are the tax implications when you renovate and then fleck a property on That is a.
Yeah, so that's a little bit out of what I teach. But GST, so long term rentals, which is what I help clients purchasing, run GST exempt. So when you flap where you trade properties, you have a GEST registered event. So that's quite quite separate. The entity is very different.
But I think the person's just saying, say I buy a property for eight hundred thousand, I spend four hundred thousand on it, and I sell it for I don't know, another couple hundred thousand. On top of that, you can deduct that expense. Obviously it's not that se profit now I think that's probably it's the basics one.
It's that specific too, flapping, so that is a benefit. Yes, I do know of investors who purchase a property claim the GST to fund a renovation. That's a whole model in itself.
Okay, we need to take another break. By the way, if you like to give Elsa a call and pick your brains on. Maybe you want to get into investing in a property and you're thinking about what sort of property am I going to buy? Do I need to look to renovate? I'm guessing the argument from else will be yes, you need to find a way of adding value because at the moment the markets it's not going to do it for you. You better do something yourself. That's my guest. But she can tell me after the
boat whether I was wrong in that summary. It's twenty one minutes to five news talks. You'd be happy to bear.
Should call you are invested in? Can you see you belong to move lis Mama?
Imagine how the will people?
It's so very fine, so happy to.
Be Yes, Welcome back to the one Roufradio Show. My guest is Elsa Wolfer. She's a realistate investor and coach at Wolf Property. Also, let's let's get into it. You're looking to buy an investment property, so I am what's the best way to add value to a property? If that's the game these days?
So on your motivation, you're on your motivation. My focus is to have your cake and eat it too. And I know that sounds a little bit greedy, but I think that's everyone.
Let's be honest. People don't get into everyone. Look, everyone needs to have something to retire on exactly.
And the way that I view it for my investors, right, they come to me to help me change their future or bring their future forward. So every day that they have a rental that's not on it's best cash flow giving them all the benefits is a day extra costs
them to reach their goal. Right, So if you think about it that way for yourself, it's how do you for yourself, how do I buy a property to add value very quickly with a trusted power team, like Andy said before, massively leverage it and get a really good cash flow because the banks are all about servicing.
Because I've got one of our questions which came from the things we might discuss. It says is five hundred thousand dollars figure for a full renovation, because I was thinking five hundred thousand dollars to spend on renovating is a lot. But you mean something a bit different than that, don't.
You standalone existing build with land purchase and full cosmetic renovation and add an internal bedroom without needing to or consent for less than half a mel That spans the best way.
You're talking about buying something and adding value and the total cost is half. We're not doing this in MROR, are we.
This is not This is not the sexy. This is not the sexy stuff. The boring stuff works, especially when you're starting out. So we're talking, you know, a good way to illustrate because everyone can picture this. You know your typical one hundred square meter were the board house. You know wherever you live, you've seen them in the suburbs. You know this is your nineteen sixties nineteen seventies build.
If you put it this way, it costs sixty to seventy thousand dollars for a full cosmetic reno, paint, flooring. You get cheap to me for a ninety square it's quite second. That's what I expect. Okay, you so put it this way. If you had two side by side houses, they're both three bedrooms to begin with. Let's say you spend that sixty thousand dollars on the one that you can keep as a three bedroom versus next door, you could otherwise buy this one it's three bedrooms, spend that
same sixty thousand for maybe five thousand dollars more. With the right layout, you can turn it into a four bedroom by throwing up a couple of extra walls and a door. The difference is that the cash flow that covers your costs and give puts cash in your pocket is from the one that you add the bedroom to. And also it means that if you had to or when you decide to sell it, a real estate agent is going to come and appraise it as a four bedroom.
So you've made you've made money on the on the value of the property.
And so how does how does how do people go about finding that finding those sorts of properties obviously through you, but in terms of doing their own research, And that still feels like are those properties easy to come by everywhere?
You have to create it?
Right?
So if you want to achieve a higher return than an average property, you have to go out and make it happen. It doesn't just jump into you know, it's not the first that jumps into the boat.
So I think that See the reason I love what you're saying is that I think there is this The media cup bridge always makes it sound like, oh, such and sucht this property for this, and you'll always get the headlines about the most dramatic auction back in the times when things were crazy. But it seems to me to be a more honest way of looking at the market. It's like, you know what, it doesn't happen on its own. You've got to make something happen. Is that your sort of ethos?
It is a couple of extra things on top of that. I love so regional centers. So you know, if you're most investors starting out don't have a million dollars, they have six or seven hundred thousand. So my job is to apply my method. They have a financial advisor, and then I help them spend the least amount but still getting them the best fundamentals. What's the strongest place they can buy? So for example, very recent example in New Plymouth. You know, if I were buying anywhere around.
Time, great city, Yeah.
You know you could. You could spend four hundred thousand dollars on a standalone house in Wanganui, or you could spend three ninety like my client recently did in New Plymouth. Well, the fundamentals of New Plymouth are so much stronger long term for the growth. But we could they purchase for three undred ninety thousand dollars. We will add an internal bedroom, full cosmetic renovation that is going to rent for seven
hundred and seventy dollars per week. And we've employed a whole bunch of local businesses and we've converted this moldy discussing house that no one should be even living in into a healthy.
Homes how much?
Healthy home? How much for the reno for four hundred and ninety five thousand including a complete nine Yeah this in this case it was pretty rundown. So it's all the healthy homes upgrowth at external paint, that kind of thing.
We've got everyone's calling in late, but so we're going to squeeze through this cause really quickly.
Jonathan good A Hi also a bus comment saying that you know, if you get into a house and you want to do a renovation and put us on boards and the property agent would come and just value it, you know, at extra.
Extra rules new bedroom.
Yeah yeah, yeah, but I don't think it's that simple because we will have property agents saying, yeah, you value it at full bedroom, but with our concert's approval, we will not be able to keep you the price that you want.
You've got a question around consent and council consent.
Okay, so yeah, it's definitely not that simple. You're absolutely right. You have to find the right template, the right house that allows you. So if you a couple of key factors, so you know, definitely do your research, but a couple of key things. Let's say you have a really large you know, maybe there's a huge lounge. If you are adding walls, you know, that's already a habitable space. I'm not talking about converting the garage, you know, which is not first sleeping in.
So so if it's under the existing roofline of your of the dwelling.
It's a habitable space. And the council's eyes, if I'm adding walls, I'm enhancing the structure. If I were to think, oh, I'll find a way to force this bedroom in and I compromise the structure, if I compromise the structural integrity, anything to do with compromising your builder would lead on that because there's no way they should do it without following the code. But the council absolutely would have to consent that.
Yes, okay, right, tell you what we're gonna have to come back with one properly of the week, Steve, stick around, what's trans easy before we wrap it up, we're with Elsa Wolf. She is a real estate investorment coach at Wolf Property. You can google her name. We'll go to Instagram. I think it's what Elsa Wolf Wolf Property Property coaching. All right, right, we'll be back in just a moment. It's coming out ten minutes to five news talks. He'd be this news talks, he'd be, I think we're doing
the property the moment and just a moment. But firstly, let's go to with where we're with Elsa Wolf. By the way, and Steve Geta got a quick question for us.
Yeah, look at about the conversion of the a three bedroom before bedroom. You've got to be a bit careful there because you can run the risk that you're not that you know, it's not going to go and obviously doesn't go through it doesn't go through council. It's not going to be on the property filed in the potential purchase and we'll see that it's not on it. And also look, I think you'll find you'll probably have to get building consent because there are a few things in
the building codes that apply to that. You've got valilation and you got light and these rule factors in the as an arket, as an check myself, we have to take into account you an outlook and the plans. So I'm not sure if it's coming template it's going to.
Lead you to do this, okay, any response to that.
Also, there are so many, so many factors. I guess it's talking about the concept here, but you're absolutely right. You know, there's a lot of compliance that comes with it. It's constantly changing. It's really important that you always lean on your LBP or your lead builder. Ain't anyone else who is a professional involved, So electricians plumbers were required for sure. And you know the window with respect to the size of the floor, there's a lot of a lot of detail.
We will cover more of this off next time. We have Elsra on the show. But thanks for your call, Steve. But we do need to get those calls happening a bit but earlier then we got more time to take them. It it's six minutes to five the one roof property of the week on the weekend collective. Now, as I say, with one roof property of the week, it's a bit like having a little holiday. You're going to have a nosy through someone's property, and this one is absolutely spectacular.
Funny enough from the outside, I know this property. I've driven past it every time I go to work. It doesn't look as exciting as it does on the end side. It's got an RV of four and a half million. I think the expected prices around six million. It's a boutique luxury home on Iraqi domain and it's it's you know, architects have had their hands on this as well. It's got multiple living zones and office gym storage options, four large bedrooms plus three bathrooms. It is It does look
quite nice. Doesn't else have you got to take on this property?
It is stunning. It's the opposite of what we buy.
It's not it's not a it's not a buy and do up for half a mil is it no.
I did a little research on this, you know, so this is well over a six million dollar house. Absolutely stunning and it has some very unique features. Actually, do you know what. It illustrates all the things that you should not do when you're behaving like me. It's absolutely what you should buy when you're looking for something unique. It has these beautiful I think they're stainless steel. I think they're steel beams, but curved.
The shape funny enough. The front of it, at the front of it is these like arch shape. From inside, I actually don't like the look of the outside, but the back of the house is really it doesn't look like the front of the house. You know, when you see the back view and you see the front view, you go those the same house.
They're quite different totally from the inside. Looking out that the glass, I'm all about tons and tons of glass. And it has seaviews. It looks over a beautiful.
Park, blackpool. It's got the pool of course. Oh well, I don't think they made the lawn either. It looks like it's they've laid the astro turf. But if you want to go and have a look at it, the address it's on the one Roof website one roof dot co dot nzet. It is one slash twenty seven Watani that's W A T, E and E crescent oraki And if you win the lotto tonight, you might still need a few extra dollars it right anyway, Hey, Elsa, time flies when you're having fun and people want to catch
up with you. And what's your website?
Wolf Property Coaching dot co dot inzet.
Excellent's great to have you in the studio and we'll look forward to next time.
Thanks fun.
Thanks That wraps the One Roof show and we'll be back in just a moment. You can check the podcast out of course where every podcast. Look for the Weekend Collective on News Tour said be parent Squads.
Next second, select the music pants He'd end.
For more from the Weekend Collective. Listen live to News Talk said B weekends from three pm, or follow the podcast on iHeartRadio