Matthew Lim

[00:00:00] Speaker A: Joshua? I was, yes, yes. [00:00:01] Speaker B: All right. Anyway, we are back with the Perth Property Bros with Josh and Carlos. [00:00:05] Speaker C: Josh and Carlos. [00:00:07] Speaker B: So Carlos, we went a bit of break and we were talking about a bit about valuations today, wasn't it? [00:00:11] Speaker C: Valuations. And over the break we're talking about rent roll valuations, rental valuation. [00:00:15] Speaker B: Yes. So there's many types of valuations out there. [00:00:19] Speaker C: Yeah, exactly. Have you ever looked into a rent roll valuation? [00:00:22] Speaker B: We did, we actually did. A bit of exercise, isn't it? [00:00:25] Speaker C: It's quite interesting. Yeah. What they, what they look at when they're valuing a rent roll. [00:00:29] Speaker B: Yeah. [00:00:29] Speaker C: Just like Matthew is going as to how they value houses, how they justify it. It's the same thing with rent rolls and I'd love to get a rent roll value in here. I've met a few in my time and it's an asset that gets looked at from various angles really and it has to do primarily with security. How long have you managed the properties? How many clients do you have? How many of those clients have multiple properties with you under management? What's the geographical distribution of the properties? Have your clients referred other cl. Things like that? Then there's the obvious, obviously the things like how much of your rent roll is in arrears, how many repairs and maintenance are outstanding and all these things sort of become factors that contribute to the overall valuation. And valuation is based on risk. High risk, medium risk, low risk, very low risk, which determines the multiplier, which is how much you're going to buy it for. I'm sure Matthew's going to give us some formulas on houses, what his formulas are, what his, the factors he takes into account when valuing a house. [00:01:38] Speaker B: So that brings an interesting question. So obviously I've brought this up with you. So how often do you see a lot of properties? I'm sure you see this a lot, right? All right, you put up this property, all right, this property here is worth 700,000 and someone comes back to you according to who say you would put it up from 700,000 for a property. [00:01:56] Speaker C: Okay, okay, so I've listed it. [00:01:58] Speaker B: You have listed a property that says from 700,000 and have you ever had buyers come back to you, say, huh, domain told me it's 650. This isn't way out priced. [00:02:08] Speaker C: Yeah, no, it happens all the time. It depends on what websites they're looking at. We spoke about this the other day, one of our groups and I'll let you describe, I'll discuss it, but in general terms there's different Websites out there, different valuation tools that people are accessing that's basing their data on different sources and they can conflict. Like it's even happened to us. When we're looking at the main property price in Price Perth, if we're looking at what one, sometimes it's coming from my mortgage, other times it's coming from Rewa, and we're talking 100 grand in difference. And this is what you were finding as well, isn't it, Josh? [00:02:48] Speaker B: Yeah, correct. I think you need to identify the source. Right. I guess what I was trying to bring up was how much we rely on data, obviously from online data. It's like domain.com, property value, real estate.com and they always come up with a price estimate. I just remember seeing an ad recently, Real estate put an ad out showing how easy it is to estimate the value of their house and it's like, oh, wow, it's really terrific. But if you actually sit down and look at it, how does it come up with this value? [00:03:20] Speaker C: Well, we rely heavily on data, Josh. I think the trick is what are the sources of the data and how much are you relying on the sources? Is it only one that you're using or is it. Are you looking at an average? I think that's sort of part of my recipe here, my formula. When looking at an appraisal. We don't value as agents, of course, we give opinions of market worth. That's the effective way to describe it. But yeah, we need to look at multiple sources of data. You can't just stick to one. And there's so many agents out there that I come across that are falling into the trap of looking into RP data. Just quickly, just do a very, a quick glance at it and take it as gospel. Now, that data is flawed. If you're going to look at it alone, there is not enough reference points. It's a great guide and it's probably a better guide if it's reporting that a property is for sale with high confidence. Sorry, its valuation is with high confidence, but it's flawed to look at it alone. [00:04:27] Speaker B: So why we say CoreLogic is good is obviously all real estate agents, we use that as a point of sales point by. And it is a little bit of all the properties are reported on it. So obviously all the values and all are added to it. All the data points are added into it to give it the best possible data. Like there's lots and lots of data in there. [00:04:52] Speaker C: Yeah, but it's missing. It's like the way that this data is gathered. You know what a scraper is? Ever heard of a scraper? A bot. Generally these guys are automatically accessing different websites like Rewa realestate.com there's going to be some information flowing in from Landgate and this information is being used and tallied and whatever, whatever. But sometimes they don't come through. The information doesn't come through. Or sometimes it's missed altogether. I don't know if you've noticed sometimes, Josh, when you're looking at a property in an area which you know there's one for sale or you know there's one sold, but you can't see it, you can't see it on apidata, it doesn't matter. You can't see it as a current listing, you can't see it as a comparable. But it's actually displaying on realestate.com as a current under offer or a current sale. So the way that they gather the data can be flawed sometimes. So you cannot just exclusively. We rely on it. [00:05:50] Speaker B: 100. So you still have to do your own research. That's pretty much what we're trying to say, isn't it? Yeah, you still have to do your own research. I think I've given an example the other time when you actually have say an apartment complex, you have 40 units in that apartment complex. All the units are two by one. You know, you can't really change it a lot. Right. So they're all pretty much cookie cutter type units next to each other. So if you value one, most likely the next one would be about that value as compared to a house, say a house and you've got a three by one. The next one that you're going to compare is maybe down the road or two, three, four streets over. One might be really old, one might be really new. The configurations are different. One might have a swimming pool. One might. So there's lots of things to compare. You're not comparing apples with apples. It's like apples and orange. But you have to try and find the closest as you can to find. [00:06:48] Speaker C: Many, as many of them as possible. [00:06:49] Speaker B: As many of them as possible to get that value as you can. [00:06:52] Speaker C: These are called data points. [00:06:53] Speaker B: Data points. Correct. And you're looking at land, you're looking at what's it's furnished, how new it is. You know, what else can you get? Zoning. You know, the zoning plays a lot. Plays a lot. [00:07:06] Speaker C: Is it close to the beach? Is in front of the beach. [00:07:08] Speaker B: In front of the beach, overlooking the. [00:07:10] Speaker C: Beach is bit little A on the fifth floor or for the third floor or the first floor. Because it happens. It doesn't matter. Sorry. It's also, it also matters whether it's beach front, a street back, five streets back. It also matters in buildings whether it's first floor, third floor, fifth floor, seventh floor. Values are going to alter and they're hard to compare as well if they're going getting a bit too high. [00:07:32] Speaker B: Interesting. So I think that's where sellers and buyers, I think I found, like when I brought this up in a presentation one day, I tend to find when you're selling a property, everyone tends to look at what's happening on the market and be like, oh, wow, this house sold for this much. My house is definitely worth this much. That house sold for that. My house is definitely worth this. You know, that kind of thing. But when a buyer, when a buyer looks at it, they're always looking at. Obviously then they were looking at real estate, looking at that estimate and that's the time when they're actually supposed to be looking at what's happening on the market, what's actually sold. And that's what market value is. It does not matter what the figure says because obviously, like you said, it depends on when the data was taken. Lots of it are quite old as well. [00:08:15] Speaker C: Well, just take a few extra steps. Even if you just want to value your own property, friend's property, you're looking to sell your property, just take a few extra steps of actually looking at different websites. [00:08:26] Speaker B: Yes. [00:08:27] Speaker C: A good reference point would be realestate.com to start. Then domain would be another one, but without each other. They're actually missing a lot of data. I know that you can access CoreLogic depending on what the site it is that you use, but you're going back to these properties that look similar. You can put the filters in for the land size, the house size, number of bathrooms, number of garages, and you can start creating these data points. [00:08:56] Speaker B: Correct. [00:08:57] Speaker C: That's the whole way to do it. [00:08:59] Speaker B: So there's a lot to it is pretty much what I'm trying to say. It's not just as simple as looking at the website. All right, that's how much it's worth. That's what I think it should buy it at. Anything above that is too much. [00:09:09] Speaker C: Well, it can also be that way, Josh. I don't know if you find that when you're looking at RP data, sometimes we're going to get a property that has a lot of comparable sales and they're just obviously there, they're Showing them to you, they're saying, look, this is high confidence and here's 10 of that have sold and 20 that are for sale and they have a similar age. So you probably think, okay, that's actually going to be fair enough. And no matter how much research you do, you're not going to come in higher or lower than that. It's more so when you're starting to get those medium confidence, low to medium confidence, even medium to high is still flawed. And you know, when you're talking about those units, before I did evaluation, I think you called me in the middle of one while I was doing it for one of our referral partners. [00:09:55] Speaker B: Yeah, tell us a little bit about that. [00:09:57] Speaker C: You know that there was, RP data was not showing comparable sales in that complex. It was showing me sales outside the complex. Now what was important about this complex one, it was an over 55s and strata fees are about 700amonth, which is an enormous amount of money. And because of, because of the over 55s, because of the strata fees, the overall value of the unit is quite low. Now we were also, RP data was also trying to compare it to three bedroom villas in the same complex, which actually sell for about two or three hundred thousand dollars more than these units. So it was trying to work out with its algorithm why it shouldn't value these places, say at 700, which I think that was the mark when units of two two bedroom units in Kalaroo were at about the 700 mark in adjoining streets. You know, but what I found was very interesting is it when I looked into the, the comparable sales, this unit is actually probably only worth 350, 360,000. Taking into account, you know, you've got a restriction over 55s and not many people want to be paying $700 a month in levies for use of the building and facilities. That's very, very, very high. So then what happened with that one is I looked at, I started doing an individual search. I think there was probably about 60 comparable units in that corner of, of the complex that were direct comparables in terms of size and what it would likely sell for. And they were actually recent sales, which I found really interesting. There were recent sales on another floor and another wing that weren't showing up in my information that apidata's algorithm actually wasn't taking into account these recent sales. I had to manually actually go through, start searching from unit one to unit 60 one by one by one until I was able to actually get enough information to say hey, this is probably going to be sitting in this region, which, which in my mind was about 3, 3325 to say 360. And yeah, and after, after a lot of hunting, I actually found that information, but it took, it took some time and I thought, I thought the algorithm would have been able just to show me with high confidence because there were so many data points, but they weren't reconciling because the algorithm was being confused by all of the adjoining neighboring properties. So, yeah, an interesting one there. So an interesting one to just remember to go back and just do a couple of cross checks. [00:12:46] Speaker B: I think to summarize, what you're saying is it's good to have all these data points, good to do, you know, you have all these various platforms to use from, but end of the day you still have to have a look at it manually and see is it Apples and Apple. Yeah, that's pretty much what you said. [00:13:00] Speaker C: Well, it's an opinion. You know, selling agents give an opinion. What's going to be interesting about Matthew? Like with our previous value, these guys come within about 5%, 5% of the actual value. I know they played a little bit on the safer side, but these guys are sworn valuers. [00:13:19] Speaker B: I think that's the difference, isn't it? Like you are giving an appraisal. [00:13:23] Speaker C: Yeah, an appraisal. [00:13:24] Speaker B: A valuable is giving a valuation, proper valuation. [00:13:28] Speaker C: Correct. [00:13:28] Speaker B: This is exactly how much your house is worth. And you pretty much. [00:13:32] Speaker C: Exactly how much? [00:13:32] Speaker B: Yeah, exactly how much? [00:13:33] Speaker C: Take it to the bank. The bank will back this. The bank will lend you money on what I'm telling you effectively, is what. [00:13:39] Speaker B: A valuer can do, because they're not just writing on a piece. They look at your house and write, okay, this is a million dollars and that's it. No, they're backing it with real data based on what's sold nearby. What's. [00:13:49] Speaker C: And they're licensed. [00:13:50] Speaker B: They're licensed to do that? [00:13:51] Speaker C: Yeah, obviously they're licensed. They're insured to do that. And yeah, you can take a value as valuation to the bank and they'll give you money on it. You couldn't take an agent's appraisal to the. [00:14:01] Speaker B: Yeah, 100%. [00:14:02] Speaker C: Josh, your place is worth five. Go and pull some equity out, my brother. No, it doesn't work that way. [00:14:08] Speaker B: Yeah, no, so that's, that's actually a very good one. In fact, even when I am doing my own, when we're trying to value and we can't actually decide what is the price of the property, we actually Call people like Matthew to say, hey, can you actually do a valuation on this? And everyone is straight away on board because they know they are licensed, this is exactly what it is worth and they have the reasons to back it up. [00:14:31] Speaker C: Sorry, you spooked them into getting on board because the value was coming again. [00:14:36] Speaker B: Well, well, I can throw out a number, right? I can say this is actually 1.5 mil when it's not. Yeah, but the only one that can actually say yes or no is a value, isn't it? [00:14:48] Speaker C: Interesting. Reminds me of that chat we had with Raymond Dupree. Yes, from Jim's building. Yeah, his tire breaker was the structural engineer, remember? [00:14:56] Speaker B: Yes, correct. Yeah. [00:14:59] Speaker C: He calls in the ref. [00:15:00] Speaker B: Ref. [00:15:01] Speaker C: You know, look, he's got. These things cost money, of course, but sometimes they're necessary. [00:15:05] Speaker B: They are. I mean, it depends as well. Like for example, there was a time when I was asked to value a property in the greenfields. Right. Now I had a look at this property. There's only 436 properties there. In fact, even the agent couldn't say what the current rental. What would be the current rental market for that particular property that we're looking at? Because there has not been any rentals in a few years. New rentals. [00:15:31] Speaker C: I'm talking about rentals of a new property, you mean? [00:15:34] Speaker B: Yeah. So like no one has come in and say, hey, I want to rent this property. How much is it? So there's not been one in a few years. So he couldn't tell for sure what the rental market is. Like what is it worth rental wise. [00:15:45] Speaker C: So how would you address that? [00:15:47] Speaker B: I got a value in. [00:15:49] Speaker C: So you got the value. [00:15:49] Speaker B: Not. Not for the rental. Sorry, I was just talking about this property. So we. I was trying to do comparison for this property. Yeah. So I was trying to do comparison sale because we were trying to buy this property. But again, the last sale was in 2022. [00:16:03] Speaker C: That probably would have gone in your favor, actually, because if there wasn't many comparable sales, then the value would have played it a little bit safer, which is going to be a little bit lower. [00:16:12] Speaker B: Exactly, yeah. So that's how we got a good value. Obviously we had to pay for it, but it told everyone what it's exactly worth and we just negotiate from there. [00:16:22] Speaker C: Oh, that's really good. So that was probably worth the exercise. [00:16:24] Speaker B: Oh yeah, it is. Again, you're saving the buyer, right. The heartache of being the buyer. Yeah, fair enough, fair enough. [00:16:35] Speaker C: It wasn't deal over the line, effectively, didn't it? [00:16:37] Speaker B: It was the deal over the line. [00:16:38] Speaker C: Correct. [00:16:40] Speaker B: So anyway, that's some of the points, why we think our value is really good and how they, you know, how they actually benefit you in the market, especially if you don't. I think they play a big crucial role, especially in the commercial space, because obviously the commercial space is a lot harder to value a commercial. [00:16:56] Speaker C: Well, these guys call us. I'm sure a lot of agents listening would say the same thing, that there's always a call coming in from a valuer. I get them all the time. They just call to check their information. Like in one case recently, they're calling to check how many inquiries I had on a property before, before they did their value, before they signed off on what they already thought they were checking. How many inquiries did you get? How consistent were the inquiries? How many offers were there? Multiple offers, and what sort of price range were the offers or even the expressions of interest? Where were people saying this place was worth? I mean, this is what we think it's worth, but is it going to be different based on the interest? Having a little bit of trouble seeing comparable sales and comparable listings, like you saying greenfields, having trouble seeing finding those. So what else is there? You know, how many people are actually breaking down the door to buy this property? So. And sometimes values will just call for an opinion based on what's going on in general. I mean, I know when markets can go backwards, they'll call to check where the agent's interest, level of interest is. You know, how hard is it to sell properties when the markets go backwards and when markets go crazy, like at the moment, you know, how long are they lasting and how many people are breaking down the door. This is all very important because they need to justify where they're arriving at their price. They're licensed. They have a process that they need to be able to back for the banks. [00:18:23] Speaker B: It was interesting, especially when Keith mentioned that he wrote the valuation, he wrote his reasoning behind it, and then one of the party didn't agree with it. So they sent a different valuation in. And the valuer just read his report and said, look at the justification. It's like, yep, I agree with Kit. This was exactly how they valued it. You know, it shows that there's lots of consistency and everyone knows what they're looking at when they're actually valuing a property. [00:18:49] Speaker C: There was also a case he discussed where there was another value that he didn't know that did a valuation independently of him. And they came in very differently. You know, he was a lot higher than the other one. The other one's playing it a lot safer. So what do you do there? We just average out the middle and that's probably. It's worth two license valuers coming in at different opinions that just split the difference. And there's your value. [00:19:13] Speaker B: Yeah, I know. I faced that myself a few times, I think because end of the day it is still subjective. Of course, still it's not, you know, and like you said, you try to get it close. There's ones where I remember there was an apartment that we were looking at. One was valued at what we offered and the other one came 100,000 below. Now, now when we looked at that and asked what was the justification, said they looked at the power poles and said that would play a part. Probably straight away, you know, the kind of thing. But then again, our argument was he sent this and this and that and like. And as you said, we went out the difference. [00:19:53] Speaker C: I find it very interesting because I like playing with data. Not as much as you, you like to research it, but we have to be able to interpret the data. It. There's a lot there, especially when we're cross referencing other sources. [00:20:06] Speaker B: I think, like what you said, it's when you need, you need to know where to go to to find that information. Sure. When you don't know certain things like I was telling you about in the greenfields when we were trying to value the property. We don't know how to do it or you're coming to a crossroads and you know, you're both headbutting now to say this is the price, this is not that you know where to find the answer. You get a value of. All right, can you do this valuation and tell us where are we in terms of ballparks? [00:20:34] Speaker C: Well, Josh, you know, we've discussed this before. There's a website, I won't mention the name that is quite, quite national, but that, you know, is used in Perth, not so much by most people, but it's there. But because it doesn't have the biggest market share, it doesn't have a complete snapshot of the overall market. But what its algorithm seems to do is look at its own listings and create an average. Right. Whereas the other big player, it's also doing the same thing as well as feeding in from CoreLogic and whatever. But they've got huge amounts of listings, bigger amounts than this other site. So every time this site comes in a lot lower or a lot higher or just way off the mark because it's actually not using. It doesn't have enough data Points to compare. [00:21:22] Speaker B: But that, that also kind of pisses me off because that's what consumers are looking at. Wats you off, Josh, it wats you off. I have a conflict with a lot of this data point where it's used by buyers, especially if they don't have a bias agent and stuff. His way is being used as this is the gospel truth, this is what it's worth. [00:21:42] Speaker C: But it's subjective like you say it is. I mean any point of view, you can be argued, you know, for or against. You know, if you tell people that the earth is flat, they're going to go and find them for evidence to, to prove it or counter it. [00:21:55] Speaker A: Yeah. [00:21:56] Speaker C: Do you know what I mean? It's the same thing with these prices. If somebody doesn't want to pay, they're going to go and find information that's going to back that. Unfortunately, a lot of these sites, these third party sites can back their arguments. So I think you just need to refine that, you know, educating them about what. What we know. [00:22:14] Speaker B: Yep. [00:22:14] Speaker C: Yeah. [00:22:15] Speaker B: All right, let's go into a bit of break, shall we Carlos? All right. And we're back with Perth Property Bros. [00:22:19] Speaker A: With Josh and Carlos, only on IPL Radio. [00:22:25] Speaker C: And we're back again with the Perth Property Bros. Carlos and Josh and Josh. We have a very special guest here. [00:22:32] Speaker B: We have, we have Matthew Lim, a valuer from Optian and he's a very good friend of mine as well. I use Matthew a lot when I do valuations for properties as well. [00:22:40] Speaker C: Oh, brilliant. Welcome Matthew. [00:22:42] Speaker A: Hey Josh and Carlos, how are you? Good, good, good. [00:22:45] Speaker C: You made it. [00:22:46] Speaker A: Yeah. [00:22:46] Speaker C: We've been talking valuations, appraisals, so all of a bit of a crescendo leading up to you getting here. So. [00:22:52] Speaker B: Yeah, so yeah. So Matthew obviously is from Apeon, isn't it? One of the. Australia's leading. I think you've been with them for, for quite a number of years as well. [00:23:01] Speaker A: Probably 11 years now. Yeah, coming up. 11 plus years. [00:23:04] Speaker B: Yeah. Wow. And how are you finding it so far? Like how has it been in the valuation space? Obviously you've seen a lot change in the last 11 years, isn't it? [00:23:13] Speaker A: Oh, that's it. It's interesting. It's always up and downs, booms and busts. So I've seen a few crashes and now we're in the obviously boom phase. Could be, yeah, yeah. [00:23:23] Speaker B: So obviously we went through a bit of a lull to begin with and obviously then Covid kind of changed everything and we are seeing what we are seeing now. [00:23:31] Speaker A: Yep. [00:23:32] Speaker B: Yeah. So, excellent. So tell us, give us a little bit about 101. What is property valuation? What does the property value actually do? [00:23:41] Speaker A: So valuations, you can mainly people do valuations for banks for refinance purpose. If you're looking to take out a loan to buy a house, the bank will typically quickly send a valuer out, assess the property and then go back to them, tell them how much the property is worth. Whether you sort of overpaying. [00:23:59] Speaker C: What's the difference for the listeners? If I say I'm a selling agent, I just write on a piece of paper, say, yep, this Property is worth $5 million. [00:24:04] Speaker A: Yep. [00:24:05] Speaker C: Withdraw some equity from this place. What's the difference between a valuer and an agent? [00:24:09] Speaker A: So generally, like people like to say valuers are conservative, but I like to think that we're probably fair because agents. [00:24:15] Speaker C: I said that before, you know, I said that earlier. [00:24:18] Speaker A: Yeah. A lot of owners always tend to think that value is a conservative, but I think agents have the incentive to get your listings. So rather than saying a value is conservative, I would say some agents are probably a little bit too optimistic to get your listing. [00:24:35] Speaker C: Some agents are dreaming. You reckon? Tell him he's dreaming. [00:24:41] Speaker B: That's right. [00:24:44] Speaker C: You've. Too bad not be ganging up on me. [00:24:46] Speaker A: No, no, no. Not. [00:24:48] Speaker C: We need to gang up on for Josh, remember? [00:24:50] Speaker A: Oh, yeah, that's it. Yeah. [00:24:51] Speaker B: All right. No, that's good. So basically, it's very different, isn't it, from an appraisal and evaluation? So obviously an appraisal is more of an opinion, I guess. Evaluation is more of the facts and figures. [00:25:06] Speaker A: I wouldn't really say opinion, facts and figures because a lot of agents, they, they actually know their, their job well as well, and the methodology behind it is all the same. So valuers is probably more like a swan valuation. You can get actually held debt against you in court, whereas an appraisal, if you can't sell it for that price, like, it doesn't matter if the banks. If that property, the bank lands on it and that property defaults. Like, the bank can actually go back to you and obviously come after you as a valuer. As a valuer versus an agent. If you can't sell it for two, like, say you're crazy for two mil and you put the market for two mil. Two months later, three months later, literally no one turns up. You're like, we might have appraised it too high. Bring it down 1.8 versus a valuer. If you tell the bank 2 mil, the bank lands on that and they try to sell it and they back it. [00:25:51] Speaker C: There's been cases where agents have given incorrect appraisals where they're too high or too low and they've gotten in hot water over it. You know, in the cases where they've priced too low and sold too low, then the sellers come back and said, hey, well how come that place down the street got a hundred thousand more or 500,000 more or whatever? You know, I'm just giving some numbers. Or too high, sits on the market. Sits on the market. Then there's a, you know, the seller needs to sell and other things happen in their life. [00:26:17] Speaker A: Yeah. [00:26:18] Speaker C: During that sales process where they're shooting for an unrealistic price. So they open themselves up to some litigation. Regardless, it's important to do your, your research and try to hit the mark and justify the mark as best as you can. [00:26:30] Speaker A: Yeah. [00:26:31] Speaker B: So anyway, Matt, tell us how did you get into valuation? Like what, what drove you to get into this space? [00:26:38] Speaker A: I've always had a passion for development and property related. So I initially thought getting to valuations, eventually branching to development. But 10 years later, I'm still here, still valuable. Are you dealing with development or just not really. Big skill, but be looking at my own for my own self. Yeah. Yeah. [00:27:04] Speaker C: Okay, good. [00:27:05] Speaker B: So what are we looking at like big development, just normal subdivision. [00:27:08] Speaker A: No, probably like mom and dad wants like your two, two lot, three lots. Yeah, two lot, three lots. [00:27:13] Speaker B: I see. Have you got one at the moment or are you still looking for one? [00:27:16] Speaker A: I've got like non development blocks, but I'm, I'm still looking for development for myself. [00:27:21] Speaker B: Sounds like you need a buyer's agent. [00:27:22] Speaker C: Right. And then a selling agent. Split it off. I'll take. [00:27:29] Speaker A: There you go. [00:27:31] Speaker B: So tell us what's, what's a day in life of a valuer that Matt? [00:27:35] Speaker A: Oh, it's actually pretty, pretty good because you're not in the office the whole time, you're not on the road. So you pretty much half and half like I normally. Yeah. Get up, I do my calls or probably the day before, make my appointments for the following day. So I actually know where I'm going, what I'm gonna do. Start probably like 8:30 or 8, depending on clients. And I'm out about half the day and then back to the office the second half. [00:27:58] Speaker B: And what's your. How many houses do you appraise in a day? [00:28:03] Speaker A: Fluctuates, I guess somewhere between six to eight. I'd say that's the average. [00:28:08] Speaker B: Six to eight. [00:28:09] Speaker A: Yeah. [00:28:09] Speaker B: How long does it take to value a property. [00:28:12] Speaker A: The inspection itself takes about 15, 20 minutes. Sometimes the bigger homes, larger homes might take up to half an hour, 45 minutes. But that's just the inspection bit. Then you got to go back to the office, do your research. Depending on whether it's just a vanilla stock stand at home or could be more complex sales that might take. [00:28:28] Speaker B: Do you get homeowners following you around the house and telling you, hey, this is a chandelier. I bought this for a billion dollars. [00:28:36] Speaker C: See that fireplace? It's fake. It's there for a bit of charm. [00:28:41] Speaker B: You actually put coffee to make it smell like coffee. [00:28:48] Speaker C: Bit of charm. [00:28:49] Speaker A: Oh, yeah, definitely. You do get that probably one out of every 10 homeowner will just follow you around telling you every single detail of what they've done, which I can understand because obviously their house is their big. One of the biggest asset, if anything. So they obviously have a lot of passion on their home and can understand. [00:29:05] Speaker C: Why, but they also need to understand to leave you alone. Like I've. While we've been on the air, we've actually got a photo shoot going on at the moment. A cinematographer, and he's the best of the best. He's the one that all the best agents use. And of course, that's why I use him. But this guy's an artist. He needs to be left alone. He needs the space. He needs it all available to him, and he needs time for his creative genius to kick in. And he takes care of everything. And he produces the most amazing videos to make my listings look amazing. And on the odd occasion, people want to sit there and watch him and follow him around and whatever. You can't do that to a professional. You have to give them that. That space, you know, just like you probably need. You probably work a lot better when people are following around, asking questions, looking over your. Your board there. 100. [00:29:51] Speaker A: Yeah. Sometimes they just peek. I'm like, all right, I'm just gonna continue doing my job. [00:29:56] Speaker C: You've learned to tune them out. [00:29:57] Speaker A: That's it. If they want to follow and have a look, like, so be it. And then sometimes they talk. I just continue working. Obviously, I chat back with them. But like, you gotta obviously try to concentrate to do what you're doing. At the same time, obviously having a chair, because sometimes you might get distracted and you miss out on the details. [00:30:13] Speaker C: That's what. It compromises your judgment, compromises your. Your ability to take. Take in the data. [00:30:18] Speaker A: Yeah, yeah, that's it. [00:30:20] Speaker B: So what's so. All right, let's let's talk valuation. Right? So let's Talk Property Valuation 101. So obviously we are in a Morris broker, we want to value the property. You go to the bank, hey, I need to redraw, I need to borrow or whatever. The bank sends you out, tell us what's the process like, what do you actually do? [00:30:39] Speaker A: So first step, we obviously contact the client, advise them of the bank valuation might be an owner occupied home might be an investment. If it's an owner occupied, we speak to the owners, book the inspection in, explain to them obviously they're refinancing or drawing out some cash. The bank's sending us to value their house, we go to their house. When we go to the property, we try to take in as much, much notes as possible. So like high ceilings, features, does the house presents like, well dated condition, any, any repairs, that sort of stuff. And once we do the inspection, we continue our job and then go back to the office, work on the report. So we look at comparables. So we try to look at as close to as the as possible to the property. Obviously make adjustments for land size, location, whether you've got aspect, busy road, list of stuff and one. Yeah. Once we finalize numbers, we go back to the bank. [00:31:30] Speaker B: So how do you. All right, say so what, like what we talked about earlier, we had, we are trying to compare apples with apples. So what happens if you don't find a property or any property that matches what you're trying to look for? How do you work then? [00:31:43] Speaker C: No comparables. [00:31:44] Speaker A: Yep. No comparables. Yeah, no comparables or no sales forever. [00:31:47] Speaker C: You know, we found one of the other. [00:31:49] Speaker B: Yeah, I was just talking to him. There was one. Nothing, there's nothing. Last sale was in 2022. [00:31:54] Speaker A: Oh, okay. So, yeah. So depending on where the property is, what sort of properties, a lot of properties are. I mean, some are, some are easy. When there's a lot of comparables, when there's very limited comparables, that's when, yeah, you got to obviously think like go outside the norm. Like look at sales outside six months. Use like a piecemeal method. So piecemeal, what it means is you look at, let say property A sold back in 2022 for X amount and then it's just sold recently for 500 grand higher or 20 higher. [00:32:21] Speaker C: Okay, so you can apply that formula. [00:32:23] Speaker A: We just say, all right, so it's a 20 increase over that period of time. And then we look at another one as well, not just one. So we look at 2, 3, 20, 20, 24. All right. We can estimate based. Based on that time frame. Like property is increase x amount. [00:32:37] Speaker C: Percentage. [00:32:38] Speaker A: Yeah, percentage wise. Obviously the property that you're valuing must have sold at that point in time as well. So the one that you're valuing so say 2 years ago x amount. Or we look at neighboring suburbs. So we look at say your property says in Haynes and there's no, no selling Haynes. So you look at Hilbert Darling Downs and then you just make your adjustments. [00:32:58] Speaker B: Interesting. [00:32:58] Speaker C: Because I get a lot of science, isn't it? [00:33:00] Speaker B: Yeah, it is. I get a lot of. [00:33:02] Speaker A: It's more art but yeah, it's true. [00:33:06] Speaker C: Right. Pin the tail on the donkey sort of thing. No, it's. This is a bit more scientific. [00:33:11] Speaker B: Scientific with your chemicals. Well, I also get a lot of clients who say, you know, when you have an owner occupied and halfway through you have converted into a rental investment property and then you, you get the accountant saying we need a valuation at that specific point. [00:33:28] Speaker A: Correct. [00:33:29] Speaker B: And the way I kind of advise them is you look at what the sales were exactly like what you're saying and what sort of percentage. And you kind of work backwards. So it's basically what you're kind of saying as well, isn't it? [00:33:39] Speaker A: That's it. But I think with the capital gains tax a lot of times you actually need a valuation report to justify if you get audited from the ATO and comes in different. So I don't think the owners can. [00:33:52] Speaker B: Even for residential. [00:33:53] Speaker A: Yeah, residential when you commit it to investment. Because our company, we do a lot of capital gains tax for this exact reason. Yeah. [00:34:02] Speaker B: Oh, interesting. Yeah, yeah, yeah. [00:34:07] Speaker C: We were just talking about that earlier actually. Specifically we're talking about the self managed super funds needing just reports. [00:34:14] Speaker A: Yeah. [00:34:14] Speaker C: Just on file for the ato. [00:34:16] Speaker A: Yeah. Just in case you get audited. [00:34:17] Speaker C: Like just in case. [00:34:18] Speaker A: Yeah. If you don't get audited then you don't, you don't really need it. [00:34:20] Speaker C: Yeah, yeah, exactly. Right. So that's what I was doing in June. I did quite a few of those, especially commercial ones. [00:34:26] Speaker A: Yeah. [00:34:27] Speaker B: So you get a lot of valuation at the moment. Obviously you've got desktop valuation and you've got on the ground valuation. [00:34:33] Speaker A: Yeah. [00:34:33] Speaker B: Tell me difference. [00:34:35] Speaker C: Because a lot of these banks, sometimes they're not even sending value anymore. [00:34:39] Speaker A: That's it. [00:34:39] Speaker C: They're happy with the desktop valuation, the digital one. [00:34:42] Speaker A: Correct. So desktop. I think it's a very. [00:34:46] Speaker B: You had a very good example the last time and there was a very different in valuation, one desktop and one on the ground. [00:34:52] Speaker A: Yeah. So desktop. Because the Value is not actually seeing your property. So they're just looking at median and they're just estimating or four by two, 2009, your house can't be that like in a bad condition. So maybe about 15, 16 year old. [00:35:06] Speaker C: Home or so can't be too bad. Does it have to do whether they're paying a big deposit too? So if they're paying put 20 down. [00:35:12] Speaker A: 30% value or risk isn't too high here. Some, some valuers might look at that, but I would say typically or generally you're not meant to look at it. But I would say some values may look at the, the down payment. I'm like, yep, you know what, sir? Quite a high deposit. Just put it through. But generally speaking, desktops. Yeah. Can be. They're not necessarily accurate but it's a very low risk product for the valveform as well. So sometimes they might be inclined to just value higher versus a full. You can actually get pull up on that. [00:35:44] Speaker C: Well, I asked that I'll bring that up because I generally get calls from valuers when there's finance on these contracts and the finance is high. If we like a 98% finance, which I had the other day in bassandine. [00:35:56] Speaker A: Yeah. [00:35:56] Speaker C: Or 95%. I just thought when I see these contracts I'm like, yep, I'm going to get a call from a value. We're insure enough. [00:36:00] Speaker A: Even the desktop. Yeah, yeah, yeah. [00:36:03] Speaker C: They gave me a call just to check even. There was another one here in Rockingham where the, the purchase price, the proposed purchase price was very high. [00:36:11] Speaker A: Yeah. [00:36:12] Speaker C: And. And they called to check. They called one. They wanted to know how many offers on the table, how much interest, how many, you know, inquiries in a day. Did you have anything else? Was I having trouble finding any comparisons at this level? [00:36:25] Speaker A: Yeah, you know, I, I tend to do that when the contract price is high. If I think it's sort of like overpriced or at the very upper end, I give the agent a call and ask like, have you got. [00:36:36] Speaker C: Why is it here? [00:36:38] Speaker A: Yeah, yeah. Like, like, is it just this one buyer? And, and sometimes it is like the agent might tell you, I've got four buyers at 800 grand. This buyer offered a meal. [00:36:46] Speaker B: Yeah. [00:36:46] Speaker C: And it was the case in that one. It was just that one. So they, that contract actually fell over. [00:36:52] Speaker A: Oh dear. [00:36:53] Speaker C: Because the value said no, can't get anywhere near that. Just because they want it. No. [00:36:58] Speaker A: Yeah. I mean they can still buy it. So I would just make up a difference. Make up the difference. That's why every grand every time hornets are complaining. I'm just saying. Saying or agents are complaining. I'm just saying it is what it is because ultimately the valuation report, the market value that we give to bank is just the market value like the valuation. The owner can just borrow up to that amount and just make up the short form. [00:37:18] Speaker C: That's right, yeah. It's, it's determining the bank's risk. The lenders risk. [00:37:22] Speaker A: The lenders risk. Yeah, yeah. [00:37:23] Speaker C: And then they'll go up to the 80% or 90%, whatever mark. But yeah, you can pay whatever you want. You can pay a meal over it if you want. [00:37:29] Speaker A: You can pay, yeah. [00:37:31] Speaker B: You've got some petty cash like that sitting around. Yeah, definitely. [00:37:34] Speaker C: Do you want an appraisal, mate? I'll give you 1.5 million for Josh's house and PR waters. Go and borrow some money now. [00:37:42] Speaker A: That's it. I think that's, that's the main reason why banks do valuations because sometimes you might buy your brother's house and you said, I'll pay my brother like 2 mil, his house is worth 500 grand. So they want to know like, if you're not, we're not lending. [00:37:53] Speaker C: That's right, yeah. [00:37:55] Speaker B: Interesting. [00:37:56] Speaker C: So we're gonna have a very quick break and then we'll come back to keep talking vows with Matthew Lim and Carlos and Josh. [00:38:05] Speaker A: Better mental health only on IPL radio. [00:38:11] Speaker C: And you're listening to the Perth Property Bros with Carlos and Josh and a very special guest, Matthew Lim, the valuer. You having fun, mate? Yeah, that was a good chat during the. I wish sometimes we can broadcast our, our chats off because we have so much fun. [00:38:27] Speaker B: Used to. [00:38:29] Speaker C: Got a gang up on Josh though. That's the, the critical point here. He gets buyer agents on board and he gives me some. So it's time to give it back. [00:38:37] Speaker B: It's time to get more biases on board. Scheduling the way to E for you. [00:38:45] Speaker C: So where are you up to with the, the questionings, mate? [00:38:48] Speaker B: Well, it's more about. Wanted to ask I guess the areas that you cover there, Matt. Obviously we've got a lot of valuers in the whole. And obviously option covers a big option, isn't it? [00:39:00] Speaker A: Yes. [00:39:01] Speaker C: Did they give you territories? [00:39:02] Speaker A: Yeah. [00:39:03] Speaker C: Or could they send you to two J? [00:39:05] Speaker A: Nah. So we've got like probably 17 valuers in, in Perth. [00:39:09] Speaker B: In Perth, yeah. [00:39:11] Speaker A: Everyone have, have different pockets that they. [00:39:13] Speaker B: Yeah. [00:39:14] Speaker A: Specialize in. [00:39:15] Speaker B: Yep. So you're like the go to person if it falls in that pocket. Pocket. [00:39:20] Speaker A: Yeah. I'm mainly in the Southeastern corridor. But then we've got like three or four valuers in the southeast corridor, so depending on which suburbs you. [00:39:27] Speaker C: So southeast you said? Ross Moyne, Shelley Forestale, Pierre Waters, Harrisdale. [00:39:32] Speaker A: Yep. [00:39:34] Speaker C: It's a big, big chunk there. [00:39:35] Speaker A: Yeah. Probably about 15 suburbs or so. [00:39:38] Speaker C: Okay. There are numbers of suburbs. [00:39:40] Speaker A: Yeah. Or just the postcodes. Ready? So it's not really number of suburbs, but just the area in general. So like anything south, the river, like. [00:39:47] Speaker B: If you're stucking 6,000, 112, that's like a few suburbs together. [00:39:50] Speaker A: Yeah, that's it. Forestdale, Armadale, Haynes, Hilbert. Yeah. So I only cover probably Forestale, Pierre Water, Pierre Waters, Harrisdale. [00:39:59] Speaker B: Yeah. Interesting. And you've been in those areas for a while? [00:40:02] Speaker A: Yeah, oh yeah, A long time. [00:40:03] Speaker B: So you know it like in the back of your head then? [00:40:05] Speaker A: That's it, yeah, I've been in those like before all the estates were even built. [00:40:09] Speaker B: I know you work with a lot of the top agents as well, like you know, the Shane Beaumont, a few of the other agents as well. [00:40:15] Speaker A: Yeah. Because he sells a lot in Gosnell, so. Yeah, yeah. So I deal with him fair bit. [00:40:19] Speaker B: Over the years and in fact Gosnals has kind of gone crazy as well. [00:40:23] Speaker A: Oh, Gosnal is. Yeah. Performing very well. [00:40:25] Speaker B: So a lot of it has to do with the developments that are coming up in the area, isn't it? [00:40:29] Speaker A: Oh, to be. Yeah. Yes and no. Because I mean for suburbs like, like your Gosnos, Armadale. I. I think it's probably because the like rentals so high, like yields are high, rents is high and. And obviously the market values is low compared to oweri. So buyers are just buying like wherever they can find. [00:40:49] Speaker C: Yeah. [00:40:50] Speaker B: Because I've got a lot of questions for Goslar, but obviously with the new ARCO Exchange. Right. The new development, new rezoning. Because they're trying to increase. Yes, correct. Which I think is on its last leg. [00:41:03] Speaker A: I think it has been approved already. So it's just a matter of time where it's implemented. [00:41:08] Speaker C: Is this an area or all of. [00:41:11] Speaker A: It'S the entire city of Go. But then certain, like only certain areas are getting like higher density. Some of them are just going to be single dance. [00:41:20] Speaker C: Okay. [00:41:21] Speaker A: Which is the same aro. It's like no changes. Yeah, yeah. Look at the map. Yeah. [00:41:27] Speaker B: So yeah, it's quite interesting. That's why a lot of people are getting into Gosnells at the moment. [00:41:31] Speaker C: Yeah. Well, the last one I saw in Gosnells I think had an arcade of 17.5. And the whole street had it up, up the street and down the street. But over the fence it was a lot higher. [00:41:40] Speaker A: Yeah, just the. [00:41:41] Speaker C: Over the back fence it was a whole different. [00:41:43] Speaker A: 30, 40. Yeah, some are going up 40, 60. [00:41:47] Speaker B: Whoa. It's interesting. Yeah. [00:41:49] Speaker C: And. [00:41:51] Speaker B: Yeah, and you see that a lot. Is that just in the. In the city of Cosinals or is that happening quite. In a few places? [00:41:56] Speaker A: I think City of Canning, Israel, in the Cannington, Beckenham, Queens park area. [00:42:01] Speaker B: So what's, what's the idea behind it? You able to talk a little bit. [00:42:04] Speaker A: About that in terms of the density. [00:42:06] Speaker B: Or like, why, why increase the density? [00:42:11] Speaker A: I mean, ultimately it's all about the metropolitan region scheme, like the Mrs. So Perth, like this. I mean, land can either go out or the only way to get more land is like infield developments or like making land smaller. And I guess they don't want to push. The infrastructure is not there to support, like pushing out further and further and further. [00:42:32] Speaker C: Is that what it is? [00:42:33] Speaker A: I mean, that's what. That's my guess. You got to ask. [00:42:35] Speaker C: Yeah. Oh, no. Okay. I thought you were giving you some massive insight here because if you go wider, then you've got to put in the information infrastructure, don't you, to support those services. [00:42:47] Speaker A: Yeah. [00:42:48] Speaker C: So you're saying that our current infrastructure can support density, is that right? [00:42:51] Speaker A: Oh, I would say. I mean, some of these blocks are quite. Are quite big as well. You still got the 900 squares, 800 squares. And compared to some of the newer blocks, like say PR or the terrace deal, a lot of them are 300 square meters. [00:43:01] Speaker C: I know, I've seen them. Very small. [00:43:03] Speaker A: So that's the norm, like of the new. New land. So some of these older suburbs, you've got 800 squares, 900 square. [00:43:10] Speaker C: So I've seen them. 220, 230. Just little baby blocks. [00:43:15] Speaker A: 150. [00:43:17] Speaker C: Yeah. [00:43:17] Speaker A: Tiny. [00:43:18] Speaker C: Very, very small. [00:43:19] Speaker A: Very small. [00:43:20] Speaker B: Yeah. [00:43:20] Speaker C: Yeah. But they're, they're actually planned very well. We needed a planner on board that'll be. Wouldn't that be good? A valuer and a planner at the show at the same time. [00:43:29] Speaker B: Yeah. Huh. [00:43:30] Speaker C: We know a few town planners, so that would be really good. [00:43:32] Speaker B: Let's get that mod. [00:43:33] Speaker C: Yeah. But we were talking last week about how well design this is. I mean, all of the houses sort of face one street. They've got a beautiful facade and behind them there's a laneway. [00:43:43] Speaker A: Yep. [00:43:44] Speaker C: You'll see this up on the north side. Alkamos, Eglinton, Yanchep, down here in Port Kennedy, you're seeing it as well. Lakelands, you got the, the back lane way. That's where all the garages face. It's where all the bins are, that's where the services are collected. And on the other street, again, the houses are, are facing the road again. So they're very efficient in their planning. There's not very much yard. Everybody sort of drives in through the backyard, through the back into the house. Yeah. [00:44:14] Speaker A: I think a lot of this is actually done by the developers. So you got your big developers like Stockland satellite. So they actually do the structure plan and then submit to council. They get approved. So yes, Stockland do some really nice planning with the parks and all that. [00:44:31] Speaker C: Yeah. Right. [00:44:34] Speaker B: It's quite interesting. So tell us Matt, a little bit about what are you actually seeing now in valuation right now. Anything that kind of jumps out at you or surprised you recently? [00:44:43] Speaker A: Nothing that I probably haven't seen. But I would say the biggest one I actually can comment on would be the. When I'm doing like as if complete valuations, typically you find like an Oris investor will get charged nearly 100 grand more for the exact same product a local buyer is getting. [00:45:02] Speaker B: Really? [00:45:02] Speaker A: Yeah. That's a very interesting fact. Like all around. So not just like my areas, every area like throughout Perth. All the other valuers have told me the same thing. I'll give you, give you an example. Like 150 square meter, 4x2 in Badar, two properties next to each other. One go building contract could be 400, the other one's 500. The only like difference is one of the buyers local, another buyers oris. Nah, being serious. Like in my areas I've seen that all the time. Like I might be doing evaluation and I'll look at the price. I'm like, this one's really high. What's wrong? Like something's wrong with this property. I go through the contract of sale. Building contract. I look at the address, I'm like, yep, not surprised. [00:45:42] Speaker C: So we're not dealing with land. We're dealing with the actual product of the build of the. The house. The land, sorry, the house package component. I think they charge him 100 more. [00:45:51] Speaker A: I'm actually thinking it could be buyer's agent. Like a lot of bias. I'm not sure. Not probably not Josh, but. [00:45:57] Speaker C: No, you could be right there. Yeah, I was talking to a settlement agent the other day. She was saying that there was a buyer's agent intercept. She, you know, gave me an indication of, of the commission. Yeah, on this sale and it was enormous. [00:46:08] Speaker A: Yeah. So. So they might be getting 20, 30 grand and the builders would charge more on top. [00:46:14] Speaker C: Yeah, right. [00:46:14] Speaker A: Yeah. That's why I've seen like a hundred grand, 100 grand difference. [00:46:19] Speaker C: Yeah. [00:46:19] Speaker A: Just in the exact, like, exact same home, same specs, same everything. [00:46:24] Speaker C: So allowing for the buyers, I didn't phase any other costs. [00:46:26] Speaker A: Yeah. [00:46:27] Speaker C: Buys agent fees and referral phase because something. You pay the reps as well. [00:46:30] Speaker A: Yep. [00:46:30] Speaker B: So it's interesting that that's happening now currently as well. [00:46:33] Speaker A: Currently, yeah. [00:46:34] Speaker B: Yeah, I know. I see a lot of that previously, but now it's happening as well. [00:46:37] Speaker A: It's. [00:46:38] Speaker C: It's. [00:46:38] Speaker A: I mean, for the last two years, it's been happening. Yeah. Last year, this year, still. [00:46:42] Speaker B: This is why I get a local buyer's agent who knows the market, who understand what's happening. Yeah. If not, you're just taking everyone's word for it, isn't it? [00:46:51] Speaker A: Yeah, yeah. [00:46:52] Speaker C: It's a huge difference. 100 grand is like. [00:46:55] Speaker B: It's a big difference. I guess you can see it in both ways. Like, one is actually. You can't see it both ways, but I've seen. [00:47:02] Speaker A: Seen some savvy investors as well. Like, the more savvy ones, they actually buy the plane ticket, fly across, meet the builders, sign the contract, and they actually get it for like, similar price or cheaper. [00:47:14] Speaker C: Well, it depends on time too, doesn't it? I mean, sometimes these guys give me a call, they don't have time to come over here, shop around. They don't know what areas are. They have no local knowledge. In terms of Greater Perth, let's not say specific local, but Greater Perth, how things work over here, I'd refer them to Josh and I have done in the past, you know. [00:47:31] Speaker A: Yeah. [00:47:32] Speaker C: When I speak to these guys, I say, well, if you value your time, you're too busy, Give Josh a call. He'll be able to, you know, he effectively pays for himself in the time saving of how much time you spend and whatever. Whatever. Especially flying over here. [00:47:46] Speaker A: Yeah. [00:47:48] Speaker C: And then between us and with all of our extended networks, we know what's going on in these local areas. [00:47:52] Speaker A: That's. [00:47:52] Speaker C: We can, you know, warn against some issues and other areas with their issues and whatever. [00:47:58] Speaker B: No, it's interesting, I think, but I've also been talking to a few investors from OAS and they're still willing to pay those amounts because they can see the value in it. [00:48:09] Speaker A: The yields. [00:48:10] Speaker B: It's not only the yields. Right. Like, they know if they pay this amount now, the way Perth is going they will eventually get their money back. In fact even more. [00:48:18] Speaker A: Yeah. [00:48:18] Speaker B: You know, so it, there's like, okay, I'm willing to pay now. So I straight away take off the whole, all the competition. I'm now I'm in the market, I'm enjoying the yields, I'm enjoying the growth and I've got an asset. That's it, you know, the kind of thing. So yeah, it's a bit of a hard one. [00:48:34] Speaker A: Yeah, it's interesting. [00:48:37] Speaker B: So anyway, tell us, in the areas that you're looking at, what are the kind of suburbs that are doing really well? What do you think gives the best value at the moment? [00:48:46] Speaker A: I mean, mean I cover some inside school. I mean based on the areas I cover, I cover more. I'd say my better performing areas is like your Roastmore in Woolerton for the high schools. [00:48:56] Speaker B: Yeah. [00:48:56] Speaker C: So it's doing really well. [00:48:58] Speaker A: Bull Creek. [00:48:59] Speaker C: Yeah. I did an appraisal at Willington the other day. I couldn't believe how high it was. Just. And it was an older house too. [00:49:05] Speaker A: Yep. Yeah. Yeah. It's like a three by one. Could be going in the low, low on meals. Yeah, yeah. But those, those areas were all always do well because of this school. So I mean with the market softened, obviously it'll go softer but the value will generally be pretty like steady. Like you're not going to be falling off a cliff. And the reason being because there's always demand versus some other suburbs. Like people are just buying because there's nowhere else to buy. Like they just, they just want to. [00:49:32] Speaker B: Get in to be frank, like Asian, like to disagree about like Asian. Asian. When the moment you talk to them. [00:49:40] Speaker C: You can't say that, Josh. [00:49:41] Speaker B: Why not? [00:49:41] Speaker C: Can't say Asian. [00:49:42] Speaker B: Technically I am, technically I am Asian. [00:49:46] Speaker C: You're going to have to give a formal apology now across on the air here you are actually you're Malaysian. [00:49:52] Speaker B: But is what I'm saying is every time you speak to an Asian, the only thing that's in you can't say it. [00:50:02] Speaker A: Yeah. [00:50:02] Speaker B: You know, Rose Point, Shelly. These are the common ones. Bull Creek. These are the ones that you always be the one that they're running after. And yeah, it'll be interesting in that sense. [00:50:12] Speaker C: It's cultural, huh? [00:50:14] Speaker A: Yeah. I think the schools like they just focus on this. [00:50:16] Speaker C: We had the same issue. We came across this, this phenomenon, call it in pr. Water waters, Harrisdale. [00:50:22] Speaker A: Yep. [00:50:23] Speaker C: When it was Indians. [00:50:25] Speaker A: Yeah, yeah. [00:50:26] Speaker C: Indian families. 97 Indian coming through and I have 40 people, every home open and little kids. And I thought what is going on here they've all got kids about this high, you know, up to about here. And it was because of the school. [00:50:38] Speaker A: Oh that's. [00:50:39] Speaker C: They wanted to get into the zone of the school to get near the headmaster. [00:50:42] Speaker A: A lot of them are actually from like Wellerton, Riverton because they're thinking that the houses that they live in are pretty old so they just want to upgrade to a new house and get. And the whole reason why they're buying in Woolerton in the first place is because of the school or Rose Point. So same thing, they just move, move here, newer house, cheaper and for the exact same same purpose. [00:50:59] Speaker B: Actually it's not cheaper anymore. [00:51:03] Speaker A: It is still cheaper compared to like what you're getting for that same sort of quality home in. In those other suburbs. So if they want to live in the house that they're living in Harrisdale, P.R. bo, let's move that house to. [00:51:14] Speaker B: Yeah. [00:51:14] Speaker A: Say Bull Creek. It's going to be like 1.52 mil. [00:51:17] Speaker B: Yeah, yeah. True 4x2 is already touching a mil. [00:51:20] Speaker A: Yeah. [00:51:22] Speaker B: And that's. That's in PR Waters area still. [00:51:24] Speaker A: Yeah, yeah, that's it. Yeah. [00:51:25] Speaker C: You've seen some changes, huh? [00:51:27] Speaker A: Huge. Yeah, Huge changes. [00:51:28] Speaker C: Pre Covid during the slump. When did you start in Perth? 2013 during the last peak. [00:51:35] Speaker A: Yeah. So 2013 was going up and then I think we peaked like 2014. Ish. And then yes, decline since then. [00:51:44] Speaker C: So when a matter of interest, when you at the bottom of the low, you know, were you contacting agents to say are we really valuing these places so low? Where were you cross referencing to say, you know this, this is. The markets have gone backwards so far. [00:52:00] Speaker A: Oh it's crazy. I think like 2020 I'm doing like like properties in Armadill. Three by one or four by two might be selling for like 160, 170. [00:52:11] Speaker C: That's right. [00:52:11] Speaker A: That's like significantly below land value. I'm looking at it. [00:52:14] Speaker C: I'm like below land value. [00:52:16] Speaker A: Below land value. Like they're saying that they. Cuz I'm looking at those areas. I'm like land's about at that point in time, like probably 180, 200. I'm like these houses are going for 160. Like what is the land? I'm actually calling like my other mates. I'm like what are you guys putting for land? Cuz you look at the bacon block of land selling for like 200, 180 and then you're looking at all these houses selling for like 160. You're like what? Yeah, it's a. [00:52:40] Speaker B: Interesting, isn't it? [00:52:41] Speaker A: And that's why it's now like what, 500 grand, 600 grand for the same house. [00:52:44] Speaker C: So it's been an adjustment. [00:52:45] Speaker A: Yeah, yeah, yeah. [00:52:46] Speaker C: Now you're actually paying for the land, paying for the house. [00:52:48] Speaker A: That's it. You're paying a lot for the house. [00:52:52] Speaker B: But how do you feel? Like, for example, you get like, you know, all the houses now is.375 is the new family block, isn't it? Now the house kind of covers pretty much the whole thing, right? The whole like about 60%. You say, how does that land value come into play anymore? Like, how do you value that land anymore? [00:53:12] Speaker A: Yeah, the same. The same way, I guess. So, yeah. We look at, obviously when we do valuations, we always look at land value first and then we compare it as a whole. Obviously we get our land value based on land sales. Make it like. And then the improvements is just the overall value. Deduct your land value. But land. Yeah, obviously land's getting a lot smaller these days, so. [00:53:32] Speaker B: So it's still a bit of land component to it, isn't it? So obviously, end of the day, land is king. [00:53:38] Speaker A: Ideally, you want to get bigger land. Like the, the goal, like the, the saying is buy the worst house in the best street. [00:53:44] Speaker B: In the best street. [00:53:45] Speaker A: Yes. Like, yeah, so. So you want to get a big block. You don't really care about the house because ultimately the new house will become old. [00:53:53] Speaker B: Yeah, true. So speaking of Armadale and where it is at the moment, what's your thoughts on it as a suburb? [00:54:00] Speaker A: Yeah, I, I actually don't really value in Armadill these days, but I, I think, I think when the market like drops eventually, like probably not, not this year, but at some point when the market go like drops, it'll probably be one of the first suburbs to go. [00:54:16] Speaker C: Go where? [00:54:17] Speaker A: Like go down. [00:54:18] Speaker C: Yeah. Because there's people overpaying or. [00:54:21] Speaker A: Cuz that's, that's not, not really overpaying because that's just how we works. Like, I mean, what's the reason? Like, has anyone actually said I want to upgrade and move to Amadale? Like, I want to buy an Armadale. That's my dream location. [00:54:31] Speaker C: No, it's, it's been this, this Como phenomenon. Have you heard of Como? Well, let me teach you. My friend Josh is laughing over there. You heard of fomo? [00:54:41] Speaker A: Yeah, fomo, yeah. Which is fear of missing out. [00:54:44] Speaker C: Fear of missing out. [00:54:45] Speaker B: You fe. [00:54:46] Speaker C: You heard of foop? [00:54:48] Speaker A: No, it's not that. [00:54:49] Speaker C: Fear of overpaying yeah. [00:54:52] Speaker A: Yep. [00:54:52] Speaker C: And now we have Como, which is compromise or miss out. It's a new term that's being coined. Compromise on compromise or miss out. [00:55:02] Speaker A: Right. [00:55:03] Speaker C: And this is what's happening in places like Armored, our guys, North Storm Lee out there. So if you can afford it, that's what the bank will end. You get in because that's. You're not going to get anything anywhere else. That's what I should seething right now. [00:55:16] Speaker B: Yeah, I know. [00:55:16] Speaker C: Yeah. [00:55:17] Speaker A: But tell them why is he promoting those areas? He's pushing, pushing hard for our video. [00:55:26] Speaker B: When we were on the show last week, I told him what Como was, right? What? You know, all these different terms now we networking events and it's like, oh, do you know what this is? [00:55:37] Speaker C: Do you know what that is? And I'm like freaking, you're gonna claim it, Josh, you gotta claim it now. Well, this is my show so I've got to be able to release new information onto it. On that note, we're gonna have a very quick break and then we'll be back with Matthew Lim, valuer on the Perth Property Bros. More music from the 60s to today. [00:56:03] Speaker A: IPL radio. [00:56:04] Speaker C: And it's the Perth Property Bros. Carlos and Josh with our very special friend Matthew Lem Valua. Now, Josh, you've got some questions about cgt, is that right? [00:56:14] Speaker B: Yeah, we were just talking before the show. You know, I, I was just telling about how I always get asked the question, oh, Josh, 10 years ago I converted my house into an investment property. Now the accountant wants to know what's the value of the house back then? And you know, and you're like, oh, what do I do? Kind of thing. Yeah. So it always obviously is a bit hard do that sort of valuation. And you were saying that it's actually a valueless job, isn't it? Correct. If the A2 over there ever ask. Yeah. [00:56:41] Speaker C: Talk a little bit about like a valuer doing a retrospective valuation. Well, how many years? Up to 5 or what, 10? [00:56:48] Speaker A: Or you can go up to as many as you want. [00:56:51] Speaker C: Wow. [00:56:51] Speaker A: Yeah, yeah. So it's just retrospectively you look at evidence back then. But I, we always like recommend clients to get it done as soon as you know you or as soon as you're converting it to a investment. Just. [00:57:02] Speaker C: That's incredible. [00:57:03] Speaker B: But why use a valuation value? Why not? Why can't I just go, hey Carlos, can you just give me the valuation? [00:57:08] Speaker C: Yeah, I could just write something up. Easy man, let it. No worries. [00:57:12] Speaker A: Yeah, cuz the ATO won't recognize like they won't recognize a random person's report. Like, they only recognize. [00:57:21] Speaker C: A random person. [00:57:22] Speaker A: Not random, like, not car. Like. [00:57:30] Speaker C: From that side of the table. [00:57:34] Speaker B: Yes, continue. [00:57:37] Speaker A: You got to be. You got to be licensed. [00:57:38] Speaker C: The listeners know exactly what you meant. [00:57:41] Speaker B: Yeah, you got to be. [00:57:41] Speaker A: You got to be a license man. You are. [00:57:43] Speaker C: Yeah. [00:57:45] Speaker B: All right, so to give us a little bit, I think you're explaining a little bit about the, you know, the difference. You know, why is it important. Important to do it then and there and, you know, if it's, say, 30 years ago, what's the difference there? What. What do you need to take into account and stuff like that. [00:58:01] Speaker A: Yeah. So if you. Normally, I would actually recommend to wait probably a few months. Like, not, not straight away, but if you wait a few months, that way there's actually more evidence that has actually settled because it's a private valuation. Like, the value is not doing something illegal. But they can try to do their best to select the highest sales or lower sales, depending on what you want. [00:58:19] Speaker B: You got more data? [00:58:20] Speaker A: Yeah, more data. So you've got obviously more. More sales to select from to try to go like a little bit higher, lower. But then at the same time, if you keep. If you wait for like five or six years, like, the planning scheme might change, your R codes might change. So the value is going to charge more because he has to do more work to go through all those data versus if you do one in like one or two years, like one year. I think it's the same. Yeah. [00:58:41] Speaker C: So do you think it's easier for you to do a retrospective devaluation than to do a speculative one? Like currently? [00:58:48] Speaker A: Definitely. Retrospective is really a lot, A lot easier. Because that way, if you already. Because in hindsight, it's all. In hindsight, you already know what the market's going to do. You know, you know, the market go down, up. [00:58:59] Speaker C: Like, you know where Bitcoin's gonna go. Really? Yeah. [00:59:03] Speaker A: Yeah. So you're not going too high, you're not going too low. You can almost say that you. You pretty much. [00:59:08] Speaker C: You hit the mark. [00:59:08] Speaker A: Yeah. Hit the market versus now. If you're valuing now because the market's moving so fast. If I value today, like, some of the sales hasn't actually settled. Yeah. So, like, still, like from last week, that might still be unsettled. The market is showing. The market's going up. But I can't use unsettled sales. I actually have to use settled evidence. [00:59:25] Speaker C: So you're two months behind. [00:59:26] Speaker A: Two months, exactly. So you're Always two months behind. [00:59:29] Speaker C: And I've noticed even I tell everybody, give everybody the same disclaimer with every single appraisal we give. It's probably to going know, expire within 30 days. We just can't see any further at the moment. [00:59:39] Speaker B: Yeah, probably now you should put a week maybe. [00:59:42] Speaker C: Well it changes so quickly. [00:59:43] Speaker A: Yeah, very fast. [00:59:45] Speaker B: So anyway, tell me Matt. So obviously, you know we use real estate agent for valuation. Sometimes we use bias agents and stuff like that. Or you [email protected] domain and you know, you come up with a valuation. Right? [00:59:58] Speaker A: Correct. [00:59:58] Speaker B: At what point do you actually use a valuer? [01:00:01] Speaker A: Yeah, I would say our main, the main source that we get our work from is the bank. Like if you're getting a refinance or taking a loan and whatnot. Whereas private valuations, we do a lot of like family law. So and obviously couples divorce or, or whatnot. You need a valuer to come in to value the asset before you can split it up. So the, the lawyers or the, the both the parties will engage us joint instructions and then we come out do it for, for them. Stamp duty, capital gains tax. [01:00:30] Speaker B: So again, someone random like Carlos can't just do it. [01:00:36] Speaker C: Remember what I said to you, I'm holding a lemon. Remember what I said? I'm holding a lemon. What are you doing with that lemon? [01:00:42] Speaker A: Carlos, you can get his opinion if it's not going to court. But again if it's, if any of these goes to court. Yes, because they actually need a swan valuation report. So for family law, unfortunately, Carlos can advise the just opinions the parties and then if they, if they actually agree to settle out of court based on that agent's appraisal, that, that can be done. They actually save money as well because they're not paying lawyers, you're not paying valuer. Get a free appraisal like you get, get an agent out, appraise the property, you're done. But again a lot of like there's always this. They might be one of the party that's looking to sell will always want a higher value. [01:01:18] Speaker C: The they don't trust. They don't trust anything the other party's got to do. Got to say you know who they're going to recommend. They don't trust it because you are. [01:01:25] Speaker B: Not, you're not like biased. [01:01:28] Speaker A: Correct. So we. Independent again, the agent might be independent as well. Like. Yeah, they just. It's not that they don't trust the agent, they actually don't trust the other party. So they don't trust the valuers as well. Like if, even if, if they might say you, you representing the husband, you might representing the wife. I'm like, no, we're representing no one. [01:01:43] Speaker C: Nobody between it. [01:01:44] Speaker A: For the courts. [01:01:45] Speaker C: I've seen cases where Rewa has been nominated to appoint three agents to an appraisal or re. Was. Been nominated to a point of value just. Just to try to leave it as, you know. [01:01:55] Speaker A: Yes. As independent. [01:01:56] Speaker C: As independent as possible. [01:01:58] Speaker A: Yeah, yeah. [01:01:59] Speaker C: So what's. Shame. [01:02:01] Speaker B: Yeah, sorry, sorry, sorry to cut you off there, but I was just going. [01:02:04] Speaker C: To say, or just agreeing that it's a shame that some people can't come to an agreement and trust each other's professional. [01:02:11] Speaker B: So what about like, obviously we see, you know, you mentioned earlier about buyers overpaying and stuff like that. [01:02:17] Speaker A: Yeah. [01:02:18] Speaker B: It. Those kind of instances. How does you know can no value actually help in those kind of instance? Like what? I guess that's where we get a private valuation, isn't it? [01:02:26] Speaker A: Correct. I would say like ultimately it's better to do your own due diligence. So if you're in the market for a while, you, you don't go to just one home open and put an offer. You, you look at the market maybe every week for one or two months and then you have a rough idea as to what the demand is. Like you go to homeopathons, like 20 people there, 30 people there. And then you might put in low ball the first few times and then you miss out, you're like, okay, so buyers are willing to pay X amount. But if normally people actually engage a value when it's a very tricky property where there is limited sales, there's not much comparables they can draw from or could be a player planning, planning issue or whatever. That's when they're like, all right, you know what, I need an expert's opinion. But your stock stand at home. A lot of times I. You can engage a valuer, but I just. Yeah, I mean you can if you want. [01:03:16] Speaker B: I think in those instances like we talked about, where it's a property where there's not a lot of comparison sales, you just really don't know how to value this sort of property. [01:03:24] Speaker A: Yeah. [01:03:25] Speaker B: So. And I think value 100. [01:03:27] Speaker A: Yeah. [01:03:27] Speaker C: So. [01:03:27] Speaker B: All right, that's really great, Matt. Now tell me, tell me three things you wish buyers would know or understand about what they need to understand before they purchase a property. [01:03:39] Speaker A: I would say one thing that's interesting is the buyers, they look at the house. They don't actually look at the land and trees like a Lot of properties have very big trees. Could be near damaging your room, roof for fence or what, those sort of stuff. [01:03:55] Speaker B: Okay. [01:03:56] Speaker A: So I would say, like, be aware of the surroundings, like your neighborhood as well. Like, not just look at the property. Like, look at who's living in the neighborhood. So sometimes it's good to just drive by. [01:04:06] Speaker C: Look at the lawns, mate. [01:04:07] Speaker A: Lawns. Yeah, that's. [01:04:08] Speaker C: That's a great indicator. [01:04:09] Speaker B: My lawns are really bad sometimes. [01:04:11] Speaker A: So look at your neighbor's lawns and see what sort of. You can almost guess, like, well, we've. [01:04:17] Speaker C: Got a property we've listed in Army. Are we going to mow the neighbor's lawns? Because they look that bad? They're above the waste on either side of the property we need to mow. [01:04:25] Speaker A: So you're a really good agent because that's actually a really good marketing strategy. [01:04:28] Speaker C: Of course. [01:04:29] Speaker A: So some. Some agents, they. They only just look at their client's property. But I would say the better ones just go above and beyond. You look at your surrounding, and then you. You can just tell your neighbor, I'll just move it for free. And. And that might increase. [01:04:41] Speaker C: Exactly. It's just a front lawn. [01:04:43] Speaker A: Yeah. [01:04:43] Speaker C: It takes nothing, literally nothing to mow the lawn left and right. And then it's totally for fun. [01:04:48] Speaker A: Really good strategy to. To improve the appeal of your neighborhood. [01:04:51] Speaker B: One more. [01:04:54] Speaker C: Hey, I'm sure this is probably in the quick fire, but what's the trickiest valuation you've ever done? Oh, trickiest, most interesting, most complicated, whatever. Like the one that really stood out for the ages for you. [01:05:09] Speaker A: There's a lot of interesting ones. I can't actually tell think of one, but that's what I think. Probably a monolithic dome in Kelmscott. That's probably the only one. [01:05:16] Speaker C: Monolithic dome. [01:05:19] Speaker A: It looks like an igloo, so. In Kelmscott. Yeah. [01:05:24] Speaker B: Yeah. Really well, besides, it's chronolytic. [01:05:28] Speaker A: Yeah. Yeah. So it's just one of its kind. Like, there's nothing like it in. In. [01:05:32] Speaker C: So it goes up like that. Yeah, it's like a. [01:05:35] Speaker A: Like an igloo. Like a dome. Yeah. [01:05:37] Speaker B: How would you put a value at something like this? [01:05:39] Speaker A: It's very, very, very subjective. Because I've done. I've done lots of different construction homes, like your straw bill, Ram, Earth. Those are not common. We weatherboard or done those as well. Yeah, but these are quite common. Like, I've actually done, like, probably 30, 40 of these versus, like, one. Like, that's it. That's the only one. So that's really rare. [01:05:58] Speaker C: That's really cool. [01:06:00] Speaker A: So, yeah, what you compare it to brick and tile, you compare it to weatherboard, you compare it to iron. [01:06:05] Speaker C: Like, how functional is it that I'd be going that route? What can you do with it? Can you live in it comfortably? Could you rent it out? What would the yields be? [01:06:14] Speaker B: Because you're looking at resale as well. Right. Would someone else want to buy this current price quickly? [01:06:20] Speaker A: I personally thought it wasn't too bad, but then I spoke to a few different colleagues. Everyone said it was one of the ugliest things they've seen. That's their opinion, not mine. I thought it was all right. So they're telling me, like, you got. You got to reduce it down. Or like speaking to valuers from other firms as well, they're saying it's. Yeah. Might not be as appealing to the wider market because you can't just value it based for that particular owner. You've got to value it based if he's looking to sell, like, what's the wider market prepared to pay? [01:06:48] Speaker C: Would this be a case where a value would play it safe or to maybe get two valuations and even them out, sort of get a median sort of price between them? [01:06:57] Speaker A: Yeah, could. I mean, the banks could do that. Obviously, the value will just give their opinion on what they think it's worth. This one's very subjective, to be honest. [01:07:06] Speaker C: How interesting. Well, I like that one. [01:07:07] Speaker A: So it's a very rare one. Yeah, yeah. [01:07:10] Speaker B: And what about renovations? Obviously, you hear a lot about renovations, and, you know, we're doing all kinds of renovation to try and increase value for the property. What are some tips you can give? [01:07:21] Speaker A: I would say the biggest increase would be the kitchen. So if you can run away your kitchen and then bathrooms or paint. Paint the house. [01:07:28] Speaker B: Just give a good paint. [01:07:29] Speaker A: Yeah. A good neutral, bright colors that could obviously improve the appeal, marketability. Like, what's. What Josh was doing, like mowing your neighbor's lawn before you sell. Like, that's huge. Because valuations and like, selling it's. It's not exactly the same because when you're buying, like, a lot of emotions are involved. That's what. Why what I find, like, I've done valuations for home. One without display furniture and one with display furniture. The ones with display furniture always, always, always sells well above what they cost the seller to do. So I always recommend people, like, pay four or five grand for the marketing. [01:08:04] Speaker C: Well, I'm dealing with one right now that is hitting the mark 100 grand over what the general market is saying when I'm getting expressions of interest in writing. I was just communicating earlier, the offering is 100 grand over. [01:08:17] Speaker A: And those are obviously that's not renovation but that's, that's something if you're looking to sell from a valuers perspective. I would say kitchen, bathroom, but yeah, when you're looking to sell like a lot of different visuals. [01:08:27] Speaker B: Yeah. [01:08:28] Speaker C: Everything sells through the eyes. [01:08:29] Speaker A: Visual. [01:08:29] Speaker B: Yeah, yeah, yeah. We did talk about the smell, the eyes. [01:08:33] Speaker C: Well the, the, the stage that I use. She goes above and beyond. We love these sort of people. She, she put. Puts things like popcorn like in the entertainment room. Popcorn with some coke. In the outdoor area. There's actual beers and, and there's wine on the table. There's biscuits, there's lentils in the kitchen next to the cookbooks. It's these details that most people that have come through this house that I'm currently selling think that somebody's living there. [01:08:59] Speaker A: Yeah. [01:08:59] Speaker C: When are these people going to move out? The question has come up over and over. So one of the movies. I said it's all staged. It's all staged. What do you mean you stayed? Nobody lives here. Yeah, it's all staged. [01:09:09] Speaker B: Who lives like this? All pristine and nobody touches and it's. [01:09:12] Speaker C: And that's, that's the thing. This is how we do it. Yeah. [01:09:15] Speaker B: Amazing. All right, well done. Let's get into the rapid fire questions. [01:09:19] Speaker C: Oh, this is my favorite favorite segment. [01:09:21] Speaker B: Okay. All right. Quick and sharp. [01:09:24] Speaker C: Firing squad ready. [01:09:26] Speaker B: All right, let's go. What's the most well in the suburbs that you. You are looking at what's the most underrated suburb right now? [01:09:32] Speaker A: I'd say probably Ferndale. [01:09:34] Speaker B: Ferndale. [01:09:35] Speaker A: Yeah. Just based on the suburbs that I cover. So I don't cover a lot of suburbs but based on the southeastern. [01:09:40] Speaker B: Any, any tips on Ferndale? [01:09:42] Speaker A: I think it's just moving not as. Or it's not moving as fast as your Parkwood, your lean wood. Cuz Parkwood's gone up a lot. [01:09:48] Speaker B: Yeah, 100%. [01:09:49] Speaker A: So it's yeah, I'd say Ferndale. [01:09:51] Speaker B: One Renault tip that adds the most value. [01:09:55] Speaker A: With answer that for a kitchen. [01:09:56] Speaker B: Bathroom development or buy and hold. Two different strategies. [01:10:05] Speaker A: Yeah, two different strategies. I mean like I, I personally go buy and hold as my strategy. The more go to strategy develop if you want instant cash. [01:10:13] Speaker B: Yeah, definitely. Core logic. Helpful or misleading? [01:10:19] Speaker C: We were touching on this earlier actually the quality of the data more often than not helpful. [01:10:24] Speaker A: But 20 misleading. I would say like 80. They probably ride on the money. So yeah. [01:10:31] Speaker C: Have you got any special value or program that's like CoreLogic? [01:10:36] Speaker A: I actually don't even look at the core logic numbers. [01:10:38] Speaker C: Okay. [01:10:38] Speaker A: Yeah. But I've done it in the past to compare what is coming in there. Like I said, 80, 70, 80% of the time. They're pretty bang on. [01:10:45] Speaker C: Okay. [01:10:45] Speaker A: It's normally 30% when either the client's done renovation or extensions or whatnot. That's when the figure differs quite a bit. [01:10:53] Speaker B: Yeah. Obviously if they've not sold bought, it's normally quite accurate. [01:10:58] Speaker A: Yeah. [01:10:59] Speaker C: We find properties on properties. When we look up at a property right in an area or looking and doing an appraisal, there is properties for sale currently on real estate.com and demand that aren't actually showing on CoreLogic as comparable sales. So they're not being scraped and the data is relevant. So this is why we wonder, you know, is it actually, you know, can you bank on this data? [01:11:21] Speaker A: But CoreLogic drives like takes all their data from real estate.com and bank valuations and all that as well. So they own a platform called valex which all the bank, like most of the major banks use for valuations. [01:11:33] Speaker B: Val X. Yeah, it's one of the. Yeah, yeah, go. All right. Excellent. Worst valuation you've ever had to give? [01:11:43] Speaker A: Oh, probably a knock over home. Like quite a few done. Done a few, few of those. Worst valuation. Yeah, yeah. [01:11:51] Speaker B: Was it the worst? Is that. [01:11:52] Speaker A: Yeah, probably like a dollar dollar on the house. [01:11:55] Speaker C: You've been covered in fleas, man. [01:11:57] Speaker A: Oh, I've seen, I've seen some really bad house. Yeah. [01:11:59] Speaker C: Yeah. [01:12:00] Speaker A: All right. [01:12:01] Speaker B: East or south? South of the river. [01:12:06] Speaker A: Yeah. So east is like what Jane broke? [01:12:09] Speaker B: Hills. [01:12:10] Speaker C: Hills or down to Mandra. [01:12:14] Speaker B: Yeah, I, I guess. Okay. It doesn't really matter. [01:12:18] Speaker A: I'd say, I'd say south because you close to the beach. So I'll, I'll go to, I'll go, go south. [01:12:22] Speaker B: Best. South of river is the best. All right. What's more emotional, buyer or seller? [01:12:28] Speaker A: Generally sellers are more emotional. [01:12:30] Speaker C: Yeah. [01:12:30] Speaker B: Really? [01:12:31] Speaker A: Yeah, I think, I think so. [01:12:32] Speaker B: Yeah. It's you're selling your own house, isn't it? [01:12:34] Speaker A: Yeah. [01:12:35] Speaker B: All right. Coffee or tea before a big valuation day? [01:12:38] Speaker A: A coffee. [01:12:39] Speaker B: Coffee. What's your coffee? [01:12:42] Speaker A: Or not fast, instant latte, whatever. [01:12:47] Speaker B: Right. A dream property you'd love to value. [01:12:50] Speaker C: Oh, this is a good one. [01:12:52] Speaker A: Probably some nice one in, I don't. [01:12:54] Speaker B: Know. [01:12:57] Speaker C: Park Keith, maybe. [01:13:01] Speaker B: Swimming pool value. [01:13:02] Speaker A: Or not More often than not. [01:13:06] Speaker B: No, I agree. [01:13:07] Speaker A: But in some instance. Yes, but yeah, more often than not. [01:13:10] Speaker B: Some instance. [01:13:11] Speaker A: Yeah. I mean if you, if you're doing, say valuing a property like Mossman Park, Pepe Grove. Like these people are just probably money rich, time poor. Like if they want an infinity pool. [01:13:19] Speaker C: Yeah. [01:13:20] Speaker A: They might just pay like above and beyond. But like if you're buying one in Armadill, for example, like maintenance, zero to none. Yeah. [01:13:28] Speaker C: Tenants are gonna have to look after it. Yeah, I can. I agree with that. [01:13:31] Speaker B: All right, one last one. One word to describe Pert's property market right now. [01:13:37] Speaker A: Still booming, I think. [01:13:39] Speaker C: Still booming. I think that's four words. Go again. One word. Growth. [01:13:46] Speaker B: Booming. [01:13:48] Speaker C: Good. [01:13:48] Speaker B: All right, excellent. Well done. [01:13:50] Speaker C: All right, we'll have a very quick break and then we'll be back again. We're going acoustic. Welcome back to the Perth Property Bros. We've got a quick sign off from Matt Lim. Yeah, tell us how people can reach you. It's been a really interesting show, mate. Thanks for helping me gang up on this guy. [01:14:05] Speaker B: No, we didn't. [01:14:09] Speaker C: You're about to get a lemon to the head, man. So Matthew, how can people contact you? [01:14:13] Speaker A: Yeah, I can give my work email. So that's Matthew Tutees Limption, O-P T E O N Solutions dot com. So we're one of the biggest here providers for valuations in Australia. [01:14:27] Speaker B: So especially if you want to get met yourself, the areas that you cover is usually from the Ross Moynxelli Creek. [01:14:35] Speaker A: But yeah, we've got a very good team of valuers. So I mean if you can reach out to me that we can, obviously. Yeah. [01:14:41] Speaker C: Well, I'll be referring to. I've got two properties of interest, one in Williton and this one here in Forestdale. There might be a private vale in that for you, mate. [01:14:48] Speaker A: So sweet chips. [01:14:49] Speaker C: But you never know. Every people listening in. Yeah, so our building inspector that came in, one of those guys, he got several, several jobs just from being on the show and bantering with with us, you know. Yeah, he did very well. [01:15:01] Speaker B: We ganged up again. [01:15:02] Speaker A: Carlos too. So you guys bring guests to attack. Oh, 100. [01:15:09] Speaker B: All right. And how can they reach? Just email. [01:15:11] Speaker A: Yeah, email or. I mean numbers. I don't know, should I give my number or. [01:15:15] Speaker C: It's up to you. [01:15:16] Speaker A: Sorry, I'll leave you the email for now. [01:15:20] Speaker C: There's a lot of single listeners around your age. [01:15:22] Speaker B: Yeah, there you go. [01:15:23] Speaker C: You know, it's been a pleasure having you on, man. It's been a really good show. I do really appreciate it. [01:15:30] Speaker A: Thanks, Josh, thanks for having us. [01:15:32] Speaker C: We're back, we're back again next week. Joshua, who have we got next week. [01:15:36] Speaker B: Next week I think we've got a mortgage broker again, Andrew Peterson, if I'm not mistaken. [01:15:41] Speaker C: Oh, brilliant. [01:15:42] Speaker B: Yes. Now it'll be a good discussion. I think we'll talk about, I think in the one he likes to focus on, you know, first time investors and long term investors as well. And we can talk a little bit about structuring mortgages and stuff like that. So it's been a while since we've got someone like that on board. [01:15:58] Speaker C: So that's really good. I like these first time guys, people that are helping these sort of people starting out. Even Stephen Pool, remember Stephen Pool the other day he was saying he likes to help people that have some credit issues and sure enough, I found him one very quickly after the show because we know what we start having, one to one, isn't it? We know what we do. And he's helping one of my clients out. So that had a few concerns. [01:16:20] Speaker B: So amazing. It'll be good to have them on the show. So anyway, Carlos, what's. What's happening for the weekend? [01:16:27] Speaker C: Oh, well, you know me, home opens, my friend. Yeah, that's my weekends home opens I think in a couple, a couple of appraisals coming up and hopefully writing up an offer. [01:16:37] Speaker B: Excellent. [01:16:37] Speaker C: What about yourself? [01:16:38] Speaker B: We've got a. Trying to get this element over the line. Working with Carly closely on this one. So I think the sellers were not playing ball. And guess what? [01:16:47] Speaker A: What? [01:16:47] Speaker B: I sent in Carly. [01:16:48] Speaker C: Oh, Carly Alpha conveyancing. She's gonna get. She's actually gonna be subbing for me here on the show. She's gonna be me because I'm gonna be over seeing my dad for my birthday. So you'd be you and Carly. [01:16:59] Speaker B: All right. So be the Josh and Carly show. [01:17:01] Speaker C: The Josh and Carly show. [01:17:02] Speaker A: Yeah. All right. [01:17:05] Speaker C: So. All right, well, best of luck. I want to hear all about it next week. And we'll be back again next week. Here's Joker and the Thief Wolf Mother signing.