{"id":3407,"date":"2015-02-14T01:00:39","date_gmt":"2015-02-13T14:00:39","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=3407"},"modified":"2015-02-14T01:00:39","modified_gmt":"2015-02-13T14:00:39","slug":"tenants-investor-advice-cgt","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/tenants-investor-advice-cgt\/","title":{"rendered":"Get the tenants you want | Start up investor advice | Capital Gains Tax | Properties with asbestos | Property Investment Principles | Bias in successful property investing"},"content":{"rendered":"

 
\nSmart investors target the tenants they want and make sure the property fits their needs. Find out how best to do that.
\nAs property investors we can sometimes be our own worst enemy. It\u2019s not because of the decisions we make, the opportunities we consider or the investments we miss out on, but rather, it\u2019s due to the way we think<\/i>.
\nMichael Yardney asks the question \u2013 \u201cAre you too biased to be a successful property investor?\u201d\u00a0 What does that mean?
\nWe hear about the good property investment principals \u2013 some golden rules I guess from Sky TV\u2019s Chris Gray<\/strong> \u2013 star of ‘Your Property Empire’.
\n<\/em>
\nIf you are a start up investor \u2013 buyers agent Josh Masters<\/strong> says start small, focus on a single outcome and only settle for the best. Josh joins us to explain more.
\nKen Raiss<\/strong> responds to Victor\u2019s question about Capital Gains Tax and when it is applied if he wants to rent out his principal place of residence and then move back before he sells it.
\nOur renovation expert Cherie Barber<\/strong> is in the show as well and I want to find out from Cherie what she sees as the risks and opportunities of buying a property with asbestos.
\n <\/p>\n

Transcripts<\/h4>\n

Kevin<\/b>:\u00a0 I have a real treat for you over the next few weeks. Michael Yardney <\/a>is going to be joining me. We\u2019ll be talking about the psychology of success \u2013 what are some of the things that hold us up? As we go through this, there might be a few aha moments for you \u2013 there were for me when we were looking at the notes that Michael gave me.
\nGood day, Michael.
\nMichael<\/b>:\u00a0 Hi, Kevin.
\nKevin<\/b>:\u00a0 Good to be talking again, mate. Some of these things, we\u2019re sometimes our own worst enemy, aren\u2019t we?
\nMichael<\/b>:\u00a0 Yes, we are. That\u2019s one of the things that holds us back.
\nKevin<\/b>:\u00a0 Okay. Can we run through a few of the things that you\u2019ve observed?
\nMichael<\/b>:\u00a0 Sure, Kevin. It\u2019s actually not because of the decisions we make, the opportunities we consider as investments, or what we miss out on. It\u2019s actually just in what we think, how we think.
\nThat\u2019s because, as humans, we are subject to something psychologists call cognitive biases. That\u2019s what I\u2019d like to spend some time talking about in the series of four programs we\u2019re going to do together.
\nKevin, they\u2019re fancy words for how our brains sneakily convince us to make decisions that aren\u2019t necessarily in our best interest. These cognitive biases sometimes convince us to spend more, maybe to save less, to feel confident in our decisions \u2013 maybe more confident than we should be.
\nThe scary thing, for the most part, though, is we\u2019re powerless against them because they\u2019re subconscious, they\u2019re unconscious.
\nKevin<\/b>:\u00a0 Okay. All right. But sometimes having it explained to us makes us more aware of it?
\nMichael<\/b>:\u00a0 Well, you have to, to start with. I\u2019ve been able to study this because as I\u2019ve been dealing with some very successful property investors \u2013 and also some who are not as successful \u2013 I\u2019ve noticed that it\u2019s the mindset, it\u2019s the psychology, that is the biggest difference between those who outperform regularly in all areas of life and the average Australian.
\nOne of the big ones I come across in property is something psychologists like calling \u201cconfirmation bias.\u201d You see, people tend to search for information that confirms their views of the world, and then we get to ignore the bits that don\u2019t fit in.
\nIn an uncertain world, we love to be right, because it helps us make sense of things. But we do this automatically, usually without realizing, partly because it\u2019s easier to see where these new pieces fit into a picture puzzle we\u2019re currently working on rather than imagining a new picture.
\nKevin<\/b>:\u00a0 How do we counter that, Michael?
\nMichael<\/b>:\u00a0 What it really means, I think, is that if you believe in investing in a certain region, what you\u2019re going to keep doing is you\u2019re going to keep reading about the stuff that suits you. You tend to seek out news that will confirm what you think, and you actually don\u2019t pay attention to other things.
\nDuring the mining town area booms, everyone kept reading everything that could be said about that, just like you tend to about your football team or the political party you like, and you ignore the others.
\nYou asked a really good question, Kevin: how do we counter this? I would be suggesting you do this by reading things you\u2019re going to disagree with. It sounds counterintuitive, but I\u2019d be looking for reasons why your strategies could be wrong rather than why you could be right. That\u2019s one way to do it, Kevin.
\nKevin<\/b>:\u00a0 Certainly broadening your horizons really, isn\u2019t it?
\nMichael<\/b>:\u00a0 It is, isn\u2019t it? That\u2019s right.
\nKevin<\/b>:\u00a0 What\u2019s another one, Michael?
\nMichael<\/b>:\u00a0 Psychologists like to say that we\u2019ve got something called anchoring bias. We have a tendency to use anchors or reference points to make decisions or evaluations \u2013 something that could sometimes lead us astray. Can I give you an example?
\nKevin<\/b>:\u00a0 Please.
\nMichael<\/b>:\u00a0 If you\u2019re going to go car parking in the middle of town, you\u2019ll pay $6 per hour happily if you\u2019ve driven past a car park that actually says $10 per hour down the street. The first number we see, especially when it comes to prices about things, actually colors what comes after it.
\nThis is used often in negotiation. It\u2019s often used in negotiation with property. You\u2019ll notice it with estate agents, as well. High anchors influence you to spend more than you normally would.
\nKevin<\/b>:\u00a0 We call it conditioning, actually.
\nMichael<\/b>:\u00a0 It is in some ways, isn\u2019t it? Property marketers, estate agents, car salespeople, they use this principle all the time, Kevin. They start with a high asking price, and you feel good when you suddenly extract a discount from them.
\nThis is because the initial price set for that off-the-plan apartment is actually higher than they were ever going to expect anyway. But it makes you feel good. Whether you like the number or not, your mind is referring to that initial number, and you think, \u201cHey, I\u2019ve done a good job.\u201d
\nKevin<\/b>:\u00a0 It\u2019s rationalizing it, isn\u2019t it, to yourself?
\nMichael<\/b>:\u00a0 It is. This is the way our mind plays tricks with us.
\nKevin<\/b>:\u00a0 Oh yes \u2013 obvious. All right, mate, we\u2019re going to have to leave it there. We\u2019ll come back with more of these in the weeks to come.
\nWe\u2019re talking about the psychology of success with Michael Yardney<\/a>. Thanks, Michael.
\nMichael<\/b>:\u00a0 My pleasure, Kevin.
\n <\/p>\n

Chris Gray<\/h4>\n

Kevin<\/b>:\u00a0 I\u2019m just catching up now with Chris Gray from Empire, YourEmpire.com.au.
\nGood day, Chris.
\nChris<\/b>:\u00a0 Hi there. How are you doing?
\nKevin<\/b>:\u00a0 Good, mate. Good to be talking to you again. I wanted to talk to you, Chris. I\u2019ve noticed a lot of your blogs, and I\u2019ve been watching you on Sky TV too. I thought it might be good to pick up on some of the good property investment principals that I know you follow.
\nOne that\u2019s near and dear to my heart is \u201cdon\u2019t buy from your heart.\u201d
\nChris<\/b>:\u00a0 Exactly. I used to be an accountant. Technically, I still am. There are not many great advantages to being an accountant, but one of the best ones I say is the easy way for a lot of property investors who are accountants to invest is we have no emotion so it\u2019s very easy to make decisions based on the facts rather than the emotions.
\nKevin<\/b>:\u00a0 Yes. Use your head rather than your heart.
\nChris<\/b>:\u00a0 Exactly. It\u2019s hard because properties look beautiful. We look down the street, and a lot of the time, we want to be able to live in them ourselves. But that doesn\u2019t necessarily make financial sense.
\nKevin<\/b>:\u00a0 How important is it for someone to develop or understand their own risk profile when they\u2019re developing a plan, Chris?
\nChris<\/b>:\u00a0 It\u2019s really important, because there are a lot of companies out there and a lot of people that say, \u201cYou have to do this strategy; this is the only way.\u201d There\u2019s no way it can be right, because some people earn $50,000, some people earn $500; some people are 18, some people are 85. There is no way that there can be one strategy that suits everyone based on their income, their risk profiles, their family situations, and what they\u2019re going through emotionally or work-wise.
\nYour strategy may well change over the decades, as well, so you really have to look at the pros and cons of every strategy. There are financial pros and cons, and there are emotional ones, as well. Then you have got to develop what\u2019s right for you at that point in time.
\nKevin<\/b>:\u00a0 Yes. Timing the market: I know quite a few people talk about this but I\u2019ve heard you say, too, that\u2019s nowhere near as important as time in<\/i> the market.
\nChris<\/b>:\u00a0 Exactly. We just look at the stock exchange, and if you try and pick the peaks and the troughs, you have absolutely no hope. I speak to the great guys at places like Reserve X, SQM Research, or AccuData, and those guys spend their whole lives studying the market and even they don\u2019t profess to be able to do it inside-out and with any kind of guarantee.
\nThe best thing I did is started investing at 22, and no matter what price I would have paid, almost no matter what property I would have bought \u2013 within reason \u2013 I would have made money on 20 years later.
\nSure, it is important to get the right property. Sure, it\u2019s important to get it at the right price, and a lot of people say you make your money when you buy. Sure, that is true, but the bottom line is if you\u2019ve held something for 20 years rather than 10 years, chances are you\u2019re going to make a lot more money.
\nKevin<\/b>:\u00a0 Have you ever been guilty of chasing hot spots at all, Chris?
\nChris<\/b>:\u00a0 No, generally I haven\u2019t. I\u2019m the kind of boring strategy, in a way. When the magazines say, \u201cWhat are your tips for next year?\u201d I\u2019ll say, \u201cIt\u2019s the same as last year. It\u2019s the same as 10 years ago. It\u2019s the same as 10 years\u2019 time.\u201d
\nMy kind of investing strategy is go for a guarantee. I typically go for the blue chip inner city suburbs, without going for the CBD, because generally they\u2019ve always been good, and I believe they\u2019ll always be good in the future. The down side is it costs more money to get into them, the negative gearing is a bit more because the rent is less.
\nIf you reckon you can take the next suburb that doubles from $200 to $400, good on you, but it\u2019s unlikely to be the best suburb for the next 30 years. My strategy is to buy the property, always buy a good one, then sit on the beach, and I\u2019m happy until next year comes around or even the year after until it\u2019s grown, and then I just keep repeating.
\nKevin<\/b>:\u00a0 Always makes sense. Chris Gray, thank you so much for your time. Chris, of course, is a regular on Sky TV, and you can contact him through the website, YourEmpire.com.au.
\nChris, thanks for your time, mate.
\nChris<\/b>:\u00a0 Thanks a lot. Cheers.
\n <\/p>\n

Cate Bakos<\/h4>\n

Kevin<\/b>:\u00a0 One of the key things when you buy an investment property is to think of the end game. I\u2019m not talking here about what the property is going to be like, but who is it going to appeal to? You must have, in your mind, the ideal tenant. You get a great tenant and you\u2019ve got yourself a very good investment property.
\nCate Bakos is the person who first talked to me about this. Cate Bakos is a buyer\u2019s agent from Melbourne. Her website, of course, is CateBakos.com.au. She joins me.
\nGood day, Cate.
\nCate<\/b>:\u00a0 Hi, Kevin. How are you going?
\nKevin<\/b>:\u00a0 Good. I really appreciated you telling me about this because it made so much sense to have that end tenant in mind when I\u2019m selecting an investment property. Tell me a little bit more about that.
\nCate<\/b>:\u00a0 Basically, lots of different areas will cater to lots of different tenants. It doesn\u2019t need to be as dramatic as regional\u00a0<\/b>versus metro. There are certain locations within the metro city that have completely different target tenants. It might mean that we\u2019re near a hospital and we\u2019re catering to contracts, medicos, doctors, nurses. It might mean that we\u2019re in a regional town where families really value a particular attribute to the property.
\nBut if you don\u2019t understand what the target tenant wants, then we often get it wrong and it means that you might have a higher propensity to tenant turnover or you might not be able to easily get a tenant every time the property is up for rent.
\nKevin<\/b>:\u00a0 I was talking to Cherie Barber who is the renovation queen and she was telling me that when she does a renovation, she thinks about the end user in mind. I know you\u2019re talking about an investment property, but it\u2019s the same principle really, isn\u2019t it?
\nCate<\/b>:\u00a0 It is.
\nKevin<\/b>:\u00a0\u00a0<\/b>You wouldn\u2019t put into a house something that\u2019s not going to appeal to your target market.
\nCate<\/b>:\u00a0 I recently had an example where I put an investment property forward to an investor client of mine and his query was that it didn\u2019t have a large enough dining area. It did have room for a small table in the kitchen, but it didn\u2019t have a separate dining area.
\nThis property was in a really hot little location where caf\u00e9s were abundant and the tenant could just walk out the door and pick from a range of restaurants and caf\u00e9s. I had to point that out to him that young people who are living in the environment like that are paying the premium to live amongst all of that, and they\u2019re not necessarily chefs.
\nIn fact, another client that I placed in the same suburb, interestingly, went back to do their final inspection a year later and the new oven still had the stickers inside it.
\nKevin<\/b>:\u00a0 That\u2019s a pretty telling point, isn\u2019t it? I guess \u201cWalk a mile in my shoes\u201d is the lesson if you\u2019re going to be an investor. Take off your own preference hat and look at it through the eyes of the person who you\u2019re going to be wanting in there as a tenant, Cate?
\nCate<\/b>:\u00a0 That\u2019s so true. It\u2019s absolutely true. I go to regional areas with clients, and understanding what the families in those regional areas want is vital because if you get it wrong, you\u2019re facing with the prospect of having a property that you\u2019ve bought for yield not actually renting quickly and not delivering the yield that you intended it to.
\nJust by understanding those target tenants\u2026 For example, in Ballarat, an area that I\u2019m quite fond of, a large powered shed and a house with ducted heating can make the difference of $50 extra per week if you have both of those items.
\nUnderstanding what little changes can be made or what aspects that you should be looking for when you\u2019re selecting the property are important. That can really make the difference between having it instantly tenanted and getting a return as strong as $300 a week versus $250 if you haven\u2019t got those items.
\nKevin<\/b>:\u00a0 Cate Bakos, thanks so much again for your time.
\nCate<\/b>:\u00a0 Thanks a lot, Kevin.
\n <\/p>\n

\u00a0Josh Masters<\/h4>\n

Kevin<\/b>:\u00a0 You\u2019ve been to those seminars, you\u2019ve read heaps of books, and you\u2019re all fired up. Maybe you\u2019ve got your plan together, but quite often, the temptation is to not start in gently \u2013 in other words, just bound in. I\u2019ve actually seen people who want to become developers overnight.
\nJosh Masters has written a bit about this. Josh is from BuySide.com.au. He joins me.
\nGood day, Josh.
\nJosh<\/b>:\u00a0 Good day, Kevin. Thanks for having me.
\nKevin<\/b>:\u00a0 You see this reasonably often, do you, that people want to get in, boots and all?
\nJosh<\/b>:\u00a0 I do see it often. When people get involved in property, they\u2019re very passionate about it, and that\u2019s fair enough. I think I have to be guilty about jumping in boots and all before. I think I\u2019ve probably had eyes bigger than my belly and wanted to get in, learn all the courses, and learn all the ways that you can make money.
\nSometimes you really can miss the fundamentals of what it really takes to grow a portfolio. Start small and just really understand the process, understand really how to buy property, how to get in and do the due diligence and really assess, or even just the basics to get started before you really get out there and start working on more advanced strategies.
\nKevin<\/b>:\u00a0 Yes. I\u2019ve heard the saying, \u201cBite off what you can and chew like hell\u201d but it doesn\u2019t really work. I think the other thing, too, Josh, is that I\u2019ve been to many seminars and read lots of books, and they\u2019re all written by very talented people. You go out and hear these speakers and the temptation is, \u201cGee, they make it look so easy; I can do this.\u201d
\nJosh<\/b>:\u00a0 Yes, absolutely. You find the experts out there are experts because they have gone into their field and they did start small, but they developed along the way and they went very deep into a particular strategy. If you go deep into any strategy that makes money, eventually you will do well and you\u2019ll become the expert in that field.
\nThey do make it look easy. All the marketing material is fantastic, and what I\u2019ve found is that a lot of people get glitter in the eye and then they realize how much work actually goes into something like this. With all due respect to the teachers out there, they\u2019re doing a great job in the property markets, but knowing it and learning it can be two very different things.
\nKevin<\/b>:\u00a0 Yes. Another confusing thing, too, I find is that there are so many strategies for making money and they\u2019re all relevant but they fit different people, like buying hold options, renovating, flipping, developing and selling. How do you find the right focus?
\nJosh<\/b>:\u00a0 That\u2019s a good question. Sometimes, without getting a little bit woo-woo, it\u2019s about what calls to you at that time. I know some people love renovations. I was an interior designer before this, so it really made sense to me to do renovations. That really appealed to me, and I loved it. I\u2019ve done Cherie Barber\u2019s course. I know Cherie\u2019s coming on later on. It was just fantastic, and that really resonated with me.
\nThere will be other people out there who really love the contract side of it and they\u2019ll be able to look at things and get a town planner involved and maybe do what it takes on paper to maybe subdivide a block or do an option. That\u2019s a strategy in itself. But I think it has to suit your lifestyle at the end of the day.
\nKevin<\/b>:\u00a0 Yes, it does, and it\u2019s got to fit your risk profile, as well. The other thing too, I find \u2013 and Michael Yardney, who is a regular on our show, talks about this all the time \u2013 is about buying the best. Just make sure that you\u2019re hold out. Do you agree with that?
\nJosh<\/b>:\u00a0 I absolutely do agree with that. Property is not like the share market. It\u2019s very much a long-term game, and if you\u2019re going to buy a property, you really need to be looking at least 10 years in advance. When I look at properties \u2013 and my clients, as well \u2013 I say, \u201cWould I be happy to own this in 10 years\u2019 time? Would I be proud to own this? Is this an area that\u2019s going to be still up and coming, it\u2019s not a flash in the pan?\u201d
\nThat\u2019s where you really make your money because if you can hold it for 10 years and then the next 10 years following, the leverage that you get, the compounding growth, that\u2019s where it really starts to take hold, and you really build wealth from that.
\nKevin<\/b>:\u00a0 Yeah. Josh, great talking to you as always, mate. I appreciate you giving us your time.
\nJosh<\/b>:\u00a0 My pleasure, Kevin.
\nKevin<\/b>:\u00a0 Josh is from the website BuySide.com.au. Josh, thanks again for your time, mate.
\nJosh<\/b>:\u00a0 Thanks for having me.
\n <\/p>\n

\u00a0Ken Raiss<\/h4>\n

Kevin<\/b>:\u00a0 In today\u2019s show, we\u2019re going to answer a couple of questions from listeners. Thanks for sending them in. Just send them in anytime through the website. Even if we don\u2019t answer them in the show, we will always get an answer for you.
\nVictor wrote to us and said, \u201cI moved out of my principal place of residence, which I\u2019ve been in for seven years, and then rented it out for three years. I plan to sell it. Do I have to pay capital gains tax? Do I need to move back in to sell it so I can get some exemption? The main reason I want to sell it is to avoid capital gains tax and minimize my yearly land tax. I plan to put some of the money into my self-funded superannuation fund so I can buy under that scheme.\u201d
\nA number of questions in there, but I\u2019m going to refer them all now to Ken Raiss<\/a> from Chan & Naylor<\/a>.
\nKen<\/b>:\u00a0 In summary, you can retain your main residence exemption for up to six years once you move out unless, of course, you\u2019ve identified another property as your main residence. You can only have one residence for tax exemption at a time.
\nThe beauty of it is you don\u2019t have to identify which residence until you sell one. Then you do the numbers and you work out which property gives you the best tax advantage. The ATO in this regard is pretty good at it.
\nTo calculate the tax, what we need to do is go back and determine the market value of the property at the time you moved out. That sets up, if you like, the cost base to determine the profit on the sale. You get the selling price less any costs, of course, and you compare it back to the market value on the date you moved out and rented the property. That creates the profit that we then look at to see how much is taxable.
\nThe way we calculate what\u2019s taxable is we look at the number of days you\u2019ve owned it in total and you compare that to the number of days you had a tenant in there, while taking into account up to six years, you can have it as tax-free. So it\u2019s a proportion of the number of days you had a tenant versus the number of days you owned it, but you only multiply that against the profit based on the market value at the time you sold.
\nKevin<\/b>:\u00a0 In Victor\u2019s case, because he\u2019s only been renting it out for three years, it\u2019s not going to apply to him, is it?
\nKen<\/b>:\u00a0 Correct, but there will be a small amount of tax involved. There is still a 50% reduction on the tax because you\u2019ve had that more than 12 months, and you actually can put part of that profit into super. Super is taxed at 15% compared to Victor\u2019s maybe higher marginal tax rate.
\nBut if you\u2019re an employee, you can only put that money into super via a <\/b>salary sacrifice, and the only way you can do a salary sacrifice is by advising your employer before you\u2019ve earned the money. You can\u2019t call in on June 30th<\/sup> and say, \u201cLast month\u2019s money that I haven\u2019t received yet, I want to salary sacrifice that.\u201d You have to salary sacrifice prior<\/i> to earning the income.
\nIf you\u2019re self-employed, obviously that doesn\u2019t come into the equation.
\nKevin<\/b>:\u00a0 There you go, Victor. That\u2019s answered your question. Ken Raiss, of course, is from Chan & Naylor<\/a>. Thanks for your time, Ken.
\nKen<\/b>:\u00a0 Thank you, and I hope that satisfies Victor.
\n <\/p>\n

Cherie Barber<\/h4>\n

Kevin<\/b>:\u00a0 It\u2019s time to say hello to the renovation queen and the person we turn to for any renovation advice, Cherie Barber.
\nHi, Cherie.
\nCherie<\/b>:\u00a0 Hi, Kevin.
\nKevin<\/b>:\u00a0 Great to be talking to you again. You\u2019ve just finished another project for\u00a0The Living Room<\/i>\u00a0on Channel 10, I believe.
\nCherie<\/b>:\u00a0 I have. I\u2019m officially covered in paint right now, so yes.
\nKevin<\/b>:\u00a0 Well, thank you for pulling up and having a chat to us. I was keen to talk to you because I\u2019ve had a few people comment to me about the fears they have about getting a property that has asbestos in it, especially first-time buyers, because they\u2019re afraid about the renovation requirements. Tell me what your experience is with this, Cherie.
\nCherie<\/b>:\u00a0 Wow. Where do I start? First of all, I\u2019m a national brand ambassador for asbestos awareness, so I am actually quite passionate about trying to educate as many home renovators about the perils of working with asbestos. The reality is that any house that was built prior to 1987 \u2013 let\u2019s face it, that\u2019s the bulk of housing across Australia \u2013 is very likely to contain asbestos in one way, shape, or form.
\nWhat the asbestos organizations are saying now is that the third wave of asbestos victims is coming, and that third waves of victims is actually called the home renovators. We have to try and get the message out as much as possible for people not to stop renovating \u2013 we don\u2019t want people to stop renovating \u2013 but we want them to just to be aware of the dangers of asbestos when renovating old homes.
\nKevin<\/b>:\u00a0 You can buy one as long as you don\u2019t disturb it. It\u2019s okay if you seal it up. Is that right?
\nCherie<\/b>:\u00a0 Yes. Basically, asbestos, if you were to go and touch it, put your hand on it, you\u2019re not going to die. It\u2019s only when it\u2019s broken, when the fiber of asbestos is actually broken, scraped, drilled into \u2013 basically damaged or disturbed in any way.
\nWe don\u2019t exactly know whether it takes one fiber or more, but any of those airborne fibers that are inhaled can actually become mesothelioma in anywhere from 10 to 20 or 30 years\u2019 time.
\nKevin<\/b>:\u00a0 I was quite surprised recently \u2013 it would have been five or six years ago. We bought a property to renovate. We quite often think of asbestos being in walls, roofs and things like that, but we actually found, when we had an asbestos inspection done, that we had asbestos tiles that were down in the kitchen. I didn\u2019t know that they existed, Cherie.
\nCherie<\/b>:\u00a0 Yes, absolutely. That\u2019s a common mistake. There are a lot of renovators out there who have absolutely no idea. They\u2019re renovating amongst asbestos and don\u2019t know it. Most people think it\u2019s in the walls, or on the ceiling linings, or in the bathroom \u2013 that\u2019s one area where it typically tends to be. But it can be under carpet tiles, even in carpet underlay.
\nPeople knock out their walls and they see this white knitting around all of their hot water pipes: that\u2019s actually asbestos. I was talking to my dad about it just last week and she said, \u201cCherie, do you know that all the old rollaway sleepers are riddled with asbestos from the train brakes that are asbestos.
\nKevin<\/b>:\u00a0 Oh goodness.
\nCherie<\/b>:\u00a0 We\u2019re actually surrounded by it everywhere, so we just have to make sure we do it safely. My advice to people is don\u2019t remove it yourself; bring in the professionals. To me, no amount of profit is worth dying for.
\nUnfortunately, it\u2019s an issue close to my heart because my grandfather died of asbestosis ten years ago, and I was actually there on his last breath. I tell you, it\u2019s a very horrible disease to die of asbestos-related poisoning. We want less people to die from it.
\nKevin<\/b>:\u00a0 As you said earlier, you don\u2019t have to be afraid of it; just be aware of it. It shouldn\u2019t stop you from buying a property with asbestos, either, should it, Cherie?
\nCherie<\/b>:\u00a0 Absolutely not. To be honest, I buy a lot of properties that are asbestos. I buy a lot of old fiber houses that I get in and cosmetically renovate. They tend to be houses that people run away from, because people freak out about asbestos. It\u2019s one of those big building, no-noes. It\u2019s up there with termites, concrete cancer, rising damp, and asbestos.
\nAt the end of the day, there is a solution to asbestos. The question you have to ask yourself is, \u201cOkay, I can buy a property with asbestos, but how much is it going to cost me to get the professionals in to actually remove it safely?\u201d so that you\u2019re not exposing yourself as a renovator, you\u2019re not exposing your tradespeople, you\u2019re not exposing your next door neighbors. Then negotiate the cost of that removal off the purchase price.
\nKevin<\/b>:\u00a0 Indeed.
\nCherie<\/b>:\u00a0 That\u2019s how I typically look at it.
\nKevin<\/b>:\u00a0 That\u2019s right. As we say, there are opportunities; you shouldn\u2019t run away from them.
\nCherie, we\u2019re out of time unfortunately, but thank you so much and all the best. Look forward to seeing you on Channel 10\u2019s\u00a0The Living Room<\/i>\u00a0soon. If you want to contact Cherie, you can do it through her website, RenovatingForProfit.com.au.
\nCherie, thank you so much for your time.
\nCherie<\/b>:\u00a0 You\u2019re welcome. Thank you.
\n 
\n\u00a0<\/em>
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

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