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Hey guys from on property and welcome to on the road. We are in another property here

in Brisbane, bit closer to the CBD. This time I think this property is around offers over

five, nine, nine or something like that, so very similar to a lot of the other properties

that we've looked at in terms of three bedroom, one bathroom upstairs. Downstairs is not illegal

height but they have done some renovations down there but this isn't a better suburb.

More fires in this area. Properties tend to go for more. Moving downstairs he can really

feel the difference between downstairs and upstairs. In terms of the quality of the renovation

and what's been done. You've got the polished floors upstairs. He got floating floors downstairs

but so really nice downstairs as compared to some of the places that we've looked at

in the cheaper areas. Simon's just doing all the inspections and taking the photos.

I'm just a pretty face, so looking outside at this property you do actually have space

for a granny flat down here. However, the land is a lot steeper than a lot of the other

properties that we've looked at, so as you can see quite a big slope on the land was

store to sign him and about what he thinks about that and whether or not that is a good

opportunity to build a granny flat or if the slope of the land is just going to make the

bill too expensive and make it not worthwhile, but given that the area is more expensive,

rents tend to be higher in this area, then you may be able to rent a granny flat for

more money in this area as well, so that's an opportunity to think about because obviously

if you're buying somewhere that's more expensive where rents are higher, even though granny

flat bill is still going to cost you a similar amount, the rent that you get from that granny

flat maybe slightly higher because of the area that they're in.

All right. We just finished up with that property. We're now driving onto the next one. What

were your thoughts on that one, Simon? I really liked it. I liked that they had done a little

bit of re Polish the timber floorboards and painted some of the interior upstairs to get

it nice and fresh and looking, looking pretty acceptable. No work really required to get

a tenant in that property, which is great. Um, it was in a nice part of the suburb in

a really Haley district and there was lots of beautiful trees and stuff around lots of

owner occupied homes, which was also good. Um, one thing that I didn't really like is

the fact that it's a pretty irregular shaped blog. It wasn't a rectangle that didn't really

make too much sense, but what it did have, I did have a very steep backyard as well,

which I didn't really like or prefer a nice flat blog, but it's on a pretty decent piece

of land, which is really good.

So I think there's some decent potential there. Is the sloping block a deal break off of building

a granny flat or can you still build granny flats? You can still build a granny flat.

Oh though it's going to cost you a little bit more money to get everything prepared

for that, for a bloke of that block of that slow. So it's hard to say, um, without talking

with a town planner and the granny flat provided to say what the costs are going to be associated

with that. So what would your next steps be for a property like this? Um, if, if it was,

if it was taken over the property investment goals, maybe putting an offer on it, then

getting a tan plan, uh, and also the granny flat provided to going to Gary on the property

before it goes unconditional and double check the costs that are going to be associated

with putting a granny flat on there and then making the coal from there.

And then one question that I had because it's in a more expensive area than the previous

stuff we've looked at. Would you also expect to get more rent for the granny flat compared

to the other properties we looked at?

Yeah, you would. So some of the other areas, you're probably looking around $290 a week

a here because you're a little bit closer to the city. It is probably around $320 a

week for granny flat. Now that's obviously subjective, but on average. Oh No, I thought

it was a really great property. I think it'd be suitable for a lot of people. Um, it's

still a relatively affordable property that will asking just over the $500,000 mark. So

there is some, some good opportunity there.

So what do you think, why would someone choose this one over one of the cheaper 100 ones

we've been looking at today?

This one's within about 11 kilometers to the Brisbane cbd. So much closer proximity to

the, to the local say a day up here in Brisbane, which if you look at the historic performance,

the closer you are to the cbd, the stronger the capital growth is going to be.

Yeah. So it's one of those situations where all the properties we're looking at are in

good suburbs, but depending on your price range will depend on where you can purchase.

And people with a higher price bracket able to look in the suburb, whereas people with

not as much money wouldn't be able to afford this suburb. So really comes down to budget

at the end of the day as to which suburb you're going to target. Both have good opportunities.

Um, yeah,

yeah, I agree 100 percent. So coming down to borrowing capacity or budget, how much

you're comfortable with spending on an investment property. What is the longterm performance

that you want? Do you want high capital growth plus statin cashflow or you're going for more

of a cashflow place out. It really varies and

it depends on your investment goals, goals. It's so important to get clear on your investment

goals before you go researching suburbs or inspecting properties because that property

will line up with certain clients, investment goals and not other clients' investment goals.

And so it's really important that you get that clear. So you're buying a property that's

gonna move you towards what your goals are because you don't care what anyone else says

that you and your financial goals. If you need help getting clear on those goals, then

Simon and the team over at pumped on property, a offering free strategy session to you guys

where you can look at your current situation, look at where you want to be and how you're

going to get there, and so if you're interested in doing that, that's just on the phone. Get

on property.com dot a u and you can book a free strategy session over there. Thanks so

much for watching today guys. While you're here, go ahead and check out one of the other

walkthrough videos that we've done where we've been on the road and look through a bunch

of properties. I'll link those up in the side there or in the description down below. Thanks

so much for watching and until next time, stay positive.

For more infomation >> Is This Block Too Steep To Build A Granny Flat? (On The Road Ep7) - Duration: 6:55.

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When is It Better to Buy than Build a Website? - Duration: 6:59.

Welcome to The Website Investor, I'm Jeff Hunt,

and today we're going to talk about when it's better to buy than to build.

Now, you know that I have a bias towards buying,

I mean this show is called The Website Investor,

we like to buy but there are also times when you want to build. ln

this session, we're going to talk about buying not building

and the advantages of buying

but first you should know that the obvious qualification

to be able to buy is that you have capital,

you have some savings or you have access to funds in some

way and so if you have no access to funds then

you can't buy and you're stuck in the building route.

If you do have access to buy,

to funds that will help you to buy,

then stick with it because there are some really good reasons

and situations when you would want to buy

and not build. And the first one is that when you buy

something it has some size

and scale that allows you to leverage your time;

so any investment that you make after you buy

ends up being, resulting in,

bigger returns on investment than you would make when you build something from scratch.

Let me just give you an example: let's say that you spend a day

optimizing the pricing of a product that you're selling

after you buy a website,

well, that day that you invest in optimizing pricing

when you already have a lot of customers,

when you already have sales, is very likely to result in

a much bigger profit

and gain than if you spent a day when you were building something

from scratch - you had no customers and so the

actual realization of any benefit

and exchange for the time that you spend is very small when

you're starting with nothing than if you're saying

with something significant.

So there's more leverage of leveraging the basis

of your investment. Just like when you have a house,

you know, you buy a big house

and you get a mortgage for the house

and when the value of the house goes up

you're kind of leveraging the banks

and money and you're taking advantage of the incremental

growth from having a bigger house,

right? Than if you just bought a smaller one

with your own money. You're using the mortgage so you're kind of leveraging that larger

basis. So that's a reason to buy because

you can work with a larger base,

fundamentally.

A second reason to buy is when you want faster profits,

right? When you become the owner of a new website day

one of ownership you have some net income coming in.

You have the same net income that was coming in the day before you bought the site

and so your road to profits

and your road to value is a lot faster than if you start something from

scratch;

it may be months,

years before you see any appreciable revenue when you're

starting from scratch.

So a second reason to buy is it's a lot faster.

Third reason is it's easier.

You may actually not have any

interests at all in doing those technical tasks,

design tasks, the product development tasks,

whatever those tasks might be for starting

an online business from scratch whereas when you buy a business

a lot of those things are already done.

Yeah you may need to tweak them,

yes you may need to learn something about them,

you may need to improve some things

and what you buy might have significant flaws

but its way ahead of starting from scratch

where you have actually absolutely nothing

and you're having to do all of those things from the very get go.

So it's faster it's a little easier

and more efficient, you can focus your efforts

and energies on particular needs of the business rather

than on all of the needs of building it from scratch.

Now another area of reason rather why

buying can be better than building,

and some people disagree

with me on this one, is that I feel like it's actually less risky

to buy than to build and here's what I mean by that -

when you buy a business you're buying something that's already working,

it already has a process,

has a product or service of some kind,

it has traffic, has revenue

and so all of the pieces are working

or you wouldn't buy it, and that is what you're buying you're that working

model, that income stream, that comes from something that's already working.

And so there's like a thousand businesses that failed

and didn't reach the point that this one reached that you're going to buy;

so you've sort of eliminated alot of the risk by focusing on

something that's working, whereas when you start from scratch

you don't really know for certain that you'll ever have your first

dollar of income, that you'll ever have your first customer,

I mean chances are if you're following the right system you will

but still there's a lot of risk inherent in starting

something from scratch and we're not just talking about online businesses as

you know statistically that applies to brick

and mortar businesses very much so.

So, there's another way to kind of think about this risk

difference between buying and building is that when

you're buying a website the risk

is more about your evaluation,

your analysis,

of the property that you're buying than anything else.

So its like,

you know, your mitigation of risk has

to do with how well you evaluate the prospects of that business

and then how prepared you are to kind of take over ownership

and run the business.

But when you build there are more elements of risk involved;

there's like market selection,

there's the process

and system you used to build that's risky

as well and then your ability to build a good thing

is a risk element and then really important

when you're starting from scratch is,

sort of, the risk of your own personal discipline

and perseverance and sticking

with it to make it come to fruition.

So there's kind of two different kinds of risk.

When you buy, of course you're risking some capital

but here the risk is sort of hinging on your

evaluation of the business that you're buying and then when you build the

risk is spread over more things - its over you're

getting the right market and you're going to build the right thing

with the right process and are you committed enough to it.

So, I personally believe that in

many cases buying is less risky than building.

So those are some of the reasons why you

would want to buy and not build and that's what I've got for you today

in this session. There's another session where I talk about when

are the situations where it might be better to actually build

and buy and there are some very legitimate reasons for doing that as

well. Visit us at www.flipminds.com/today for

resources and tools for your business. And I'll see you next time.