New Changes to the rules covering granny-flats in WA now allow home owners to rent them out to tenants other than family members. The allowable floor space for granny-flats would increase to provide flexibility for families to invest in and rent out a granny-flat to students and seniors as a safe and affordable option. There is also potential for students and young people looking for affordable accommodation to rent granny-flats. All PK Homes floor plans and designs are covered by copyright and may not be reproduces or distributed in any way without written permission from PK Homes. Contact Mollie Laidlaw Independant Scentsy ConsultantFacebook – Mollie Laidlaw Scentsy Independant ConsultantJoin Scentsy. If you have any questions ask away or click HERE for more info.  Or Join My Team today to start your Scentsy journey!! In fact, the complete lack of sales pressure and the simplicity of our products are the main reasons so many Scentsy customers decide to become Consultants. A: The freedom of being your own boss, the flexibility to set your own schedule and work as many (or as few) hours as you choose, and the limitless potential for success are just a few of the reasons people take up direct selling.
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Master renovator Cherie Barber joins us on the show this week and tells us it is possible to earn a healthy living from doing full time renovations in any market but there are some strict guidelines. Kevin:  Let ‘s dig a little bit deeper into this concept because the market continually moves. For example, if somebody was doing a cosmetic reno where they’re coming through, let’s say, buying old house and cosmetically renovating everything and not doing any structural changes, the general rule of thumb is that you spend 10% of the property value. For example, just to put that in mathematical terms, if you buy an old house for $350,000, your total cosmetic renovation budget is $35,000 (10%) and that’s for everything inside and outside, not a dollar over. Unfortunately, none of the renovation shows will teach you these sorts of formulas, and most people, unfortunately, when they go into a renovation are armed with a wheelbarrow full of enthusiasm, but they don’t know the formulas, and they do over-capitalize. Kevin:  I guess that brings about a whole new layer of complexity for male renovators who have to almost think like females or even bring someone in like you who can actually look at it from the female point of view. This all comes back to your suburb demographics (what I call suburb due diligence) – knowing who is going to be the likely buyer of that house.  That is a very simple question because if you know your suburb, you are going to know who the likely buyers are in that suburb, whether it is a family home or a young couple without kids. All of those questions about how you renovate and what type of fixtures and fittings you put inside the renovation become so much clearer when you know who the likely buyer is going to be all before you start renovating. Kevin:  More and more we’re seeing Australians start to choose to invest in property to develop financial freedom for themselves and get themselves out of the rat race.
Michael:  Before we discuss that, maybe we should understand that we’re all at different levels along the spectrum of wealth. Michael:  When you talk about financial independence, we all start at level zero, a level of financial instability. When you reach this level, you can stop working and you can maintain a simple, basic lifestyle. Not just your current lifestyle, but you’re going to have all of your expenses covered, even if you don’t work again. We’re so lucky in Australia that most of us can get to that level of financial independence. Rob:  The seasoned investor in New South Wales would probably think that’s a strange question to ask because they know only too well.
But while your solicitor is negotiating with the seller’s solicitors to do the little ceremony called exchange of contract, which takes place in three or four weeks after you exchange sales notes, the seller is like the prettiest girl in the class in school, negotiating with two, three, or more other people to sell the same property to.
In the big resource states, Western Australia and Queensland, that’s the same position you’re in when you make an offer. Kevin:  Because in Queensland, when you buy a property, as you indicated, and you sign a contract, once that contract is signed by both parties, it’s a formed agreement.
Rob:  That’s because in between the sales note and the exchange of contract, they do all the searches. In fact, in New South Wales, you quite often see commercial contracts that are a little more complicated. To you, as an investor, the sales note doesn’t even give you a fig leaf of security against the risk of being gazumped. Kevin:  But Rob, what if you get pushed back through the agent, from the seller saying, “We don’t want that period of uncertainty”? Kevin:  I take it that the due diligence clause has got to be somewhere inside that excellent book of yours, which is called “Clauses Made Simple”?
Kevin:  Infrastructure development is, of course, the most powerful creator of capital growth in real estate.
Terry:  The three R’s are real estate roads, rail links and river crossing, which could be bridges or tunnels. Kevin:  You point out in the summary part of the report – and correctly too – that both residential and commercial real estate can benefit from infrastructure developments in transport. Terry:  That’s right, particularly warehousing type, industrial property warehousing and logistics businesses that are in that part of the economy. That also has an influence on residential property because people like to live close to where their jobs are.
Terry:  I think right now New South Wales, particularly Sydney, is spending a lot on infrastructure. Kim is a self-funded retiree, and has no taxable income, and therefore does not lodge a personal tax return. Kim’s accountant says that she should get a quality surveyor to assist the property so that she can claim depreciation. Now, the fixtures and fittings, when you sell a property, the ATO accepts that the sale of the fixtures and fittings are done at the written-down value, so there is no tax implication in relation to capital gains on the fixtures and fittings. However, on the capital works, which is the depreciation on the building itself, the ATO requires you to add back what you have claimed. I think if we look at those two individually, it does make sense, maybe if you don’t have a taxable income, to not depreciate the capital works, because it doesn’t really create you a benefit. But the problem is, for income from that property (the rental income or the capital gain) the tax is at the minor’s tax rate, which is 66%. If there are some issues with people being on disability, or if there’s issues with a family breakup and one spouse is helping, there are things like Child Maintenance Trusts that create a completely different tax scenario. Jason:  Seven years ago we launched a website called StreetAdvisor in San Francisco and Australia.
In December, we launched a new site called Homely, which builds on top of our existing community and adds homes for sale and rent across Australia.
Kevin:  What would you say your reach is around Australia for those looking at maybe buying or selling a property? Kevin:  For someone selling a property – we know of the major portals – is it an option for them to also be on Homely or do you see Homely taking over from the others?

It’s the first that has no banner ads, and the first that has no page turns back and forth. Kevin:  And at the end of the day you’ve got to have a model that’s going to make some money, so how will this be monetized in the future? Kevin:  So someone looking at buying (or particularly selling) should contact their agent and ask them to have a look at Homely? Kevin:  What that means is if I list my place with Raine and Horne, Ray White, or whatever it’s easy for them to not only load it on those other major sites, but also get it onto Homely.
It takes looking for or selling a property to another level where you get to really know the suburb before you actually buy in there, and that’s one of things that in this show we really suggest you really need to get to know that suburb first. The move was designed to ease the crush on rental housing in the resource-rich state making it easier for home owners to earn money from tenants. Normal planning requirements around setbacks and density will continue to apply, but this change will introduce more flexibility and introduce more rental accommodation to the real estate market in Western Australia.
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Scentsy processes account cancellations only for accounts with less than $150 in sales in 3 months time. But in order to earn one year’s salary in one month, you need to have the right knowledge on how to do that. In fact, what I normally say to the people that I public speak to around the country is that if you are somebody that is just starting out, perhaps you have not got that much cash – you have limited equity – I say the best strategy is actually to start with a property renovation for a couple of reasons.
Certainly not all aspects of the renovation are, but most people can feel very comfortable painting, planting plants in the front garden, paving, painting driveways. Again, most people can do renovating, but most people are uneducated on the formulas of renovating.
They get to the end of their renovation, and they realize they spent more money than what they really should have. I hate to say it – and I will probably get myself in trouble for saying this – but if you have a normal husband and wife scenario, typically the female is a very strong influencer of whether a couple actually buys a property. I obviously I have a lot of females come through my workshop, but I also have a lot of men come through my workshop as well, and what’s most important is not necessarily looking at those finer details.  They’re important, but the most important thing is knowing who the buyer is that’s going to buy that house. To get there, I think you’ve got to have a little bit of accumulated assets – maybe in savings in money or in a line of credit – to give your current living expenses for, say, six months. If you needed to stop working, it would cover your home mortgage, your related expenses, your car expenses, your grocery bills, your insurance premium.
If you’re a successful property investor, maybe you won’t necessarily work again, but you can make choices whether you do or not, just like you and I still work because we’re having fun doing it. I guess you might have if you’ve been in real estate or you’ve been around real estate people. He was lamenting to me and complaining that he just put in two offers and had been gazumped on two of them that week. What you need to do is remember the process in the two big eastern seaboard states is that you start with a sales note. Don’t do all the searches, checks, and due diligence before you exchange, because in that three or four week period, that’s when you can be gazumped.
This could be one of the reasons why auctions are much more popular in New South Wales and Victoria, because if you buy a property at auction there, it is unconditional. They apply for finance, they do the pest and building inspection, so there’s usually no need, by the time you get to the exchange of contract stage in those two states to have any sort of “subject to” clause. Quite often they are subject to a number of due diligence requirements, subject to a DA [?], subject to a feasibility, subject to securing other partners to bring them into the deal, etc. I’ve been talking to the author of that book, none other than the one and only Rob Balanda from MBA Lawyers. Whether it be transport, medical, or educational infrastructure, the development of such factors is a potent, economic driver.
The best kind of transport infrastructure I think is probably the single most powerful creator of growth in real estate.
A current example that’s now on the boil is the Redcliffe peninsula of Brisbane, which has been promised rail links for 40 or 50 years, and now it’s finally happening. The fact that you’ll find industrial type property, warehousing and logistics relocating, following upgrades of motorways, for example, or creation of new ones, the jobs will follow and that will influence where people choose to buy. We had a long period under previous state governments where there was very, very little spending on infrastructure.
Brisbane has been very active in construction of new transport infrastructure in recent years, including the Clem Jones Tunnel, and AirportLink – the upgrade to the Ipswich Motorway. It’s been compiled to highlight the locations around Australia which have good prospects for future capital growth through the presence of a combination of medical, educational, and transport infrastructure facilities. Kim purchased an investment property, which was a house, which produces a small net income. She doesn’t see the need for this, since the property will not produce a taxable income for as long as she is lucky to own it.
One is on the buildings (they call that the capital works) and the other one is on the fixtures and fittings. What would happen is you could go into a small taxable loss because of that depreciation, which would then reduce the capital gain on the sale of the building.
Tell me what’s happened in the last few years with the progression from StreetAdvisor to Homely?
It was set up to rate and review every single street and suburb and neighborhood in the world initially. We’ve morphed that existing community into Homely, adding over 150,000 listings in just a few months, and just over 2500 real estate offices have signed up already. Obviously from a search engine’s perspective when you go to Google, you’re going to find the major cities very easily, but you would be surprised. At this stage, Homely is 100% free to list for agents, but we see Homely as obviously being very different. Of course, we are 100% free to list, but we also have what we call a “Homely Pro Package” and that’s a very unique marketing platform that we’ve developed for the United States market. We’ve got agents who want to reach consumers and consumers who want the information, so you’re really bringing the two together. Listing on Homely doesn’t cost them anything and we’re connected with most of the multi-loader software companies in Australia so it’s very easy to get your listing on there.
By scrapping this old restriction, so called empty nesters and seniors can unlock equity in their homes and receive a regular income, or provide space for a carer to live close by in their aging years. Our affiliation with the DSA means you can be confident about doing business with a trustworthy company. Others Join Scentsy to have a part time business.  Other want to make it a full fledged career.

From formal presentations to completely unstructured gatherings to one-on-one visits, the choice is yours. For example, if I have someone under me and they sell $1000, what would my commision be if any? Obviously, it focuses on accelerated renovations – doing them very, very fast – which takes certain skill sets to be able to do.
There are a lot of formulas: what you spend on a cosmetic renovation, what you spend on a structural renovation, and then there are actually sub-formulas of what you spend on a room-by-room basis.
It gets quite convoluted when you look at all the percentages, but in my workshops I do teach these on a room-by-room basis. Do you think, therefore, that the female is fairly instrumental in the buying decision in these renovated homes?
You’ve also probably got to have private medical insurance and life insurance, just enough to cover you. When you’re financially free, you’ve accumulated sufficient assets and have enough passive income coming in to give yourself the lifestyle you desire. A really small group of successful business people and property investors achieve financial abundance.
If you’re starting off focused on increasing your financial education through shows like this, books or seminars, find a mentor. Once accepted, that is the same position you’re in three or four weeks later in New South Wales when you actually exchange contracts. How do you protect yourself if you’re going to instruct your solicitor to exchange contracts now? The buyer could come back in that three or four weeks before exchange and even attempt to re-write the whole deal. Not only does it improve the amenity of an area by making it more accessible, but the construction of that kind of infrastructure creates massive economic activity and jobs. Terry, I wonder if you could just tell us, because infrastructure is happening all around Australia, are there any states that stand out that may be doing more infrastructure development than other states? I think that’s a major reason why Sydney has been the underachiever of the capital city property markets over the last ten years, until last year.
And we currently have under construction the Legacy Tunnel, which is going to link Toowong to Kelvin Grove. We would really like people to be aware of how important infrastructure is in creating growth in real estate.
It would seem more sensible to her to minimize capital gains tax when she sells it by not claiming depreciation. You say no taxable income, so that could be money coming from a superfund, obviously, which is not taxable in your hands. You actually get a benefit if you do the fixtures and fittings, as opposed to the capital works. If you need any more information on that, you could contact Ken and his team at Chan and Naylor. Joe wants to know whether or not he can buy an investment property in his eight-year-old son’s name. To date, we’ve had over one million ratings, reviews and local discussions, and in Australia over ten million people have now visited us. I was just typing in yesterday “best streets in Muchea” and Homely had a bunch of information on there. It helps agents engage consumers, homebuyers and renters through what we call “local expert profiles”. We’re already live with Ray White, Raine and Horne, and L.J Booker – most of the major ones. We will be discussing topics like property investment, property development (helping you understand the process), cash flow positive properties, negative gearing and finance (so you can borrow more from the banks), property investment in the latest hot spots as well as the USA, property tax (allowing you to structure for legal tax deductions and asset protection), negotiation, property management (assisting landlords and tenants understand their rights and responsibilities), negotiation and the psychology of property investment success.
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We intentionally keep our product line and pricing simple because that makes it easy for our Consultants to relax and be themselves. If they have an emergency, if they lose their job, if their car breaks down unexpectedly, they’ve actually got to dig into what little reserve they’ve got.
Most people want to make so sure it’s all safe and sound that, in fact, they don’t take that first step. All financially independent investors that I’ve come across surround themselves with a smart team of advisors and professionals as well as like-minded individuals they mastermind with, and mentors, as well. While it doesn’t apply in all states of Australia, it certainly does in the two major states of Victoria and New South Wales, which is where a lot of our listeners reside. Then three or four weeks later, they sign off on the contract – the terms of the contract with the other solicitor. But I think the big difference that we’ve seen recently is that money is now being spent on infrastructure. All those projects have a big impact on the residential suburbs that are located proximate to either end of those projects.
Bottom line: if you’re looking for, say, the best suburbs in Brisbane, Queensland or Melbourne, usually Homely will come up number one with a list of all those ratings and reviews.
But secondly, Homely is all about creating a very beautiful consumer user experience – one that you’ve probably never seen before in Australia based on our seven years of U.S. There’s nothing to lose, it’s 100% free to list, and we’re finding a lot of people wanting to list their homes, and in fact asking their agents to get their homes onto Homely.
Some of our Consultants opt to sell just enough for a little extra pocket money, while our Superstar Directors can make six-figure incomes per year. But despite doing all that, their cash machine still keep pouring out money, and the assets keep accumulating. It basically means when a seller has secured a property by signing a sales note in Victoria or New South Wales, they think that is now under their control and is off the market. We’re offering $50 off the normal price so people can get their hands on that report more cheaply. And in-line with helping people find where to live, agents can earn points for answering consumer questions, writing reviews or uploading photos, and it really helps agents interact with consumers to put them in the right position as the premier agent in that area. We actually had a look at that and rated our suburb some years ago, and I’m pleased to see that it’s still there.
It might have cost you a thousand or a couple thousand in legal fees, in due diligence inquiries and stuff, all just thrown away.

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