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hi guys, this is ryan from onproperty.com.auyour daily dose of property education and information. today i have with me jacob fromripe house which is a powerful software tool that allows you to quickly analyse potentialareas that you want to invest in and also properties that you want to invest in. todaywe're going to delve into it and work at how we can use this tool to find areas that maypotentially generate a good capital growth for us.ryan: hi jacob and thanks for coming on today. jacob: hi ryan, thanks for having me.ryan: hi, do you want to give us a really quick overview of why you created this softwareand what it can help people do? jacob: yes, sure. i guess it's a softwarethat looks to the property to start with every

current for-sale listing in australia in realtime but it really tries to put those individual properties in context within their suburband street. yet looking at their suburb and the individual strategies that are relevantto that suburb makes me sure that's consistent with your strategy and then make me sure thatit is consistent down through the street and on to the individual property. to do thatit looks at a lot of different sources that provides you with some real rich informationbut it also then interprets that information and make sure it does [inaudible 1:15] thestrategy in layman's terms. ryan: yes. i think this is really cool becausethere is so much data out there that you can find but you might not be able to find. butto actually analyse it and to understand,

is an area actually going to grow? does ithave the right signs? most people don't know how to do that. they may hear from their friendsor reading a magazine that an area is ripe for growth or something like that but howdo we really actually pack that up with data that's actually going to show us that thatis a strong potential or not? so is that what your system helps people do, to really understand?jacob: absolutely. and it's not that first step. i think the real point then is to stressthe point is that's the first step. it is the suburb has been recommended or you foundor search using ripe house for that suburb. there are two more stages. you've got to actuallyfind the street that's relevant to that strategy and it is consistent with that message andthen the property actually needs to be positioned

and you make it relevant to that strategyto achieve those goals. ryan: yes. i think we will see it when weget into it. i have used the tool before. i love how it breaks down a suburb into differentareas of the suburb. even though a suburb may be a hotspot, not all areas of that suburbare necessarily going to perform the same. therefore we can break down those areas andthat's going to be very valuable to people. can we jump into the software and have a lookat how we can search for potential areas with capital growth?jacob: absolutely. i'll bring that up now. there it is ryan, i'm just moving throughwindows. ryan: that's all right.jacob: what we can see here now is the main

suburb analysis page for ripehouse. this iswhere the real nuts and bolts of your analysis for a suburb start. this is the before pageso that's why we're displaying it now but what we will sort of launch into first issearching for suburbs. so we've got a capital growth strategy in mind and that's what wehave to find as much relevance to our goals, our property investment journey, that's whatwe're looking for, for this particular purchase. we can start looking and narrowing it downto strategies. so i have clicked the search there. what we're trying to do now is findsuburbs that are recommended using the engine for capital growth as the strategy and wecan narrow that down to individual areas, price ranges and crime level is an interestingone, if you are only willing to accept the

level of crime in the suburb. a great examplethat i have seen at the moment, darwin is on everybody's lips. in northern territoryits sustained amazing growth you'd think from buying anywhere else in australia that darwinis basically you can buy anywhere and achieve the same growth but darwin has individualsuburbs and individual areas and is recommended by the ripehouse engine as the capital growthsuburb in northern territory. it's one that i use as an example because it is relevant,it's recommended by the engine but it also has great individual areas and propertiesin the suburbs to demonstrate the different concepts.ryan: can you explain to us what this page is that's just come up?jacob: sure. what we did there, we narrowed

our search down, we want to invest in northernterritory and we want to invest with a capital gains strategy to start with. it's given usthe top ten suburbs that match a capital growth strategy in northern territory and when isay that, just for that one step we are looking for a suburb that has utility in demand, soextra utility in that suburb that is going to be creating demand. extra utility mightbe employment, a new mine, it might be a new transport hub, it might be a suburb next doorwhich is undergoing growth and gentrification and this suburb, the target suburb is a goingto be experiencing the ripple effect based on that suburb. people are moving to yourtarget suburb because they want to live there and there are new reasons to be living there.so i call that utility. that new utility is

now resulting in extra demand for propertyboth rental and buy in the suburb and what we want to see now is that extra demand hasnow resulted in indications of growth so the best now has occurred. that demand which isbeing caused by the new development, the new projects, the utility and the suburb is nowtriggered and the switch has been flicked. so to score highly and to summarize all thatto score highly for a capital growth strategy at a suburb level, what we look for to startwith is demand [inaudible 6:12] ryan: okay. yes.jacob: is the first one and is also the number of [inaudible 6:17] on a listing increasing.ryan: so more and more people are beginning to look at these property listings which signifiesmore and more demand for these properties

is beginning to happen. is that right?jacob: absolutely and the next 6:36 also offset with those of the market decreasing trendingdownwards in the previous quarter. ryan: yes, so properties are being sold faster,which again is an indicator that the area is in high demand. like properties in sydneyat the moment are selling within a couple of days. it's crazy.jacob: absolutely, but the important differentiation to make is that even though they are sellingquicker, days on the market might not necessarily be reducing. in sydney for example propertiesare coming on the market just as fast, so days on the market are quite consistent. whatto start with is days on market dropping it's not satisfied with new supply on the marketso that's why more people are buying, days

on market are dropping but then as soon aswe start seeing days on the market stabilizing and sales volume increasing that's the indicatorfor growth so that's what we're actually really looking for.ryan: okay. jacob: we are going through those days onmarket sign to drop. we know that there are more people looking at real estate listings,even more feet through the door at open house and stuff like that. what we're really lookingfor is days on the market decreasing over the last three months and sales volumes increasingand then also the major indicator that we are looking for is actual rental amount increasingwhich shows that new demand is now resulting in more rental demand which is going to bedriving rents up for the suburb and that's

going to bring in and attracting investorsto the area. ryan: that is awesome.jacob: there are people competing for property. there might be people who want to buy a housein the area because of the new utility but there are also investors who want to takeadvantage of that utility as well. that's when we're going to start to get price growth.ryan: with utility, because i think a lot of people will be very interested in thatbecause i get asked a lot how do i find out whether an area is getting that new employmentor getting government investment and stuff like. does ripe house go out and find thatsort of information from somewhere? do they? jacob: i guess the short answer is no, buti don't need to and ripe house doesn't need

to.ryan: okay. jacob: you don't need to be concerned. thisis a really big statement and it might become as shocking. if you could actually just seethat utility is resulting in demand and you've got indicators that demand is going to resultin growth you don't really mind what that utility is.ryan: okay. if the property is in high demand and the property is growing you don't reallycare what's happening because obviously you are getting the growth and that's what youwant. jacob: yes and that's an indicator of growth.we don't want to purchase after the growth has already happened. we are trying to seewhat's going to be happening in the short

to medium term. however, a really big [inaudible9:26] check around all that and that was already a broad statement. you've got to make surethat utility is sustainable. ryan: yes.jacob: if a mine is going to be expired in six months and it's only been around for ayear, that's the check-and-balance. if you knew the tunnel to the city is the new utilitythat's there but if when you turn it on it's going to be built in six months' time thenthat's the check-and-balance. so you don't need to be concerned about what that is. justas long as you check before you purchase it needs to appear. but what we're looking fornow is within all of these suburbs across the whole of australia to buy indicators fora capital growth strategy before the strategy

started to move and happen.ryan: darwin is good indicator of that. we can see a 97% there.jacob: yes, and darwin is one that has experienced a lot of growth. what we are talking aboutnow is darwin as the suburbs within darwin. it may now just have the buy indicators fora capital growth strategy or it may have had them all the way along and it's actually stillpushing through and rising through, indicator after indicator, quarter into quarter.ryan: so it's important for people to know that this is darwin the suburb, like innercity darwin rather than darwin as the entire capital city.jacob: absolutely, yes. ryan: okay. let's say we want to look intodarwin in more details, how do we go about

doing that?jacob: yes, you can click on this link here. we've got summary information here about darwinand we can move from this listing to individual suburbs, to move through to analyse it. sowe have got to understand that we are coming into darwin now because darwin has indicatedgrowth and the potential for growth in the short to medium term. it's doing that by notlooking at the history to predict the future, it's doing that based on what's happeningthere now. ryan: yes.jacob: the next part in this investigation is understanding the suburb and understandingthe areas in the suburb that are relevant for capital growth and the other areas aregoing to lagging behind and completely irrelevant.

we wouldn't be buying in these particularareas and streets that are really driving darwin through the growth and capital growthstrategy and your strategy. the potential used areas in darwin which are actually detrimentalto the strategy and we want to avoid those. ryan: even though the area may be going aheadthere may be some spots in the area that are not going ahead as fast or that are laggingbehind and then maybe other areas that are actually shooting ahead and performing andoutperforming what the suburb is. so you're saying we want to find the areas that areoutperforming the suburb? jacob: absolutely, yes, awesome, that's right.you have knocked the nail on the head there. if you're not doing that, if you've been recommendeddarwin or somewhere to invest and you feel

all the hard work is done, let's just go forit, let's buy there, let's look for individual properties that will prosper and negotiatehow we get a bargain. it might not be the area or the property that's relevant to thegrowth so you might be disappointed. ryan: yes. i don't actually know of any toolthat can break a suburb down into like smaller areas within that suburb? can ripe house actuallydo that? jacob: absolutely. i mean that's what we arereally trying to focus on as a tool. let's jump right in and we can see that we've cometo darwin here with a capital growth strategy in mind. each icon on the map there is a propertythat is currently for sale. it is 142 of them. what we want to do right off the bat, i won'tcomplicate matters with other features of

ripe house. let's just show areas in darwinthat are relevant to a capital growth strategy and we can do that by clicking on this togglehere. we know that capital growth is blue, it has a blue over light. there are threeareas and zones in darwin that are relevant to a capital growth strategy.ryan: yes. jacob: what that means and an area level isslightly different for the suburb so we are looking for different indicators. we've crossedthat hurdle to get into darwin in the first place. from the area level we might be lookingat slightly different things. let us skip all the properties on the map that are notsitting in one of these capital growth signs and we can filter these properties. what iwill do here is to turn on the capital growth

filter and this is a beautiful little listhere of what constitutes an area to be once again relevant to capital growth. we wantlow public housing in the area. this is actually quite separate to the general concept butwhat i'm looking for is an average or better than average street or pure content of thesuburb. we don't want a high risk or highly volatile part of the suburb that has aboveaverage public housing. that may be a strategy you may want to target, high percentage ofpublic housing just because it might have more potentially gentrified, you know, thegovernment might bring in an owner occupied by that scheme. you might want to target thatfor a capital growth and a stable capital growth through the short to medium term, reliabletenants, reliable quality of tenants and reliable

street of people are positive.ryan: yes. jacob: first thing, that area needs to havelower than average public housing. it needs to have higher than average rents for thesuburb. so this particularly has more than average rents. that leads to two things. it'seither close by or this is leading the growth in rents. and remember that was one of thebuy cues for the first place. so this particular area might be really pushing the suburb forwardas far as rents and rental demand. however, it also might means that this suburb is hometo the nicest most prestige properties that demand the most rents so we need to differentiatebetween those two things. and the way we do that is by looking for higher portion of rentsso rent is in the area. so is their high demand

for rent or property in this particular streetor area compared to the rest of the suburb? that basically is lower averages that arepushing. you've got high rents, you've got a high proportion of renters and may generallybe in the most in demand property tier which is the average type of property in a suburb.ryan: okay, so they are kind of pushing like the demand of prices up in in a way identifyingto us that there is a demand there. is that right?jacob: yes. in the final check and balances i like to see and ripehouse is showing withthe way we analyse and the argument that we use high incomes backing up high rents isthe most sustainable approach and it's going to result in capital growth. so capital growthis linked to more secure and reliable tenancies.

ryan: yes. is that because people who earnmore money can afford to pay more rents and therefore rent can grow or is it because peoplewith more money take better care of their houses?jacob: those are probably things that are all true. but at this point it's just generallyshowing that the percentage of rent of income is lower so the ability to pay a rental repaymentfor the week is a lower proportion of their income. therefore, it's cool in that regard.ryan: yes. jacob: if you're seeing massively high rentin an area with very low incomes or below average incomes for the area that's a bitof a red flag. we need to align all these together. and you generally do so in a hugeamount of examples, high rents and high incomes

working together and you just check and balancethat. ryan: okay. cool.jacob: we've got this filter rate growth it almost applies to the suburb and all the propertiesoutside of these areas out of the sample. we can sort of move forward confidently knowingthat darwin has been recommended because of its capital growth potential. it's got thosebuy signals and these are the three zones in darwin that are consistent with that message,rating for capital growth strategy. you can use individual toggles down here which arealso going to display all of the things that constituted that decision. this toggle forexample (i won't go into them all.) will show you exactly where the high rents are in thesuburb. the dark purple over lights is above

average rates and below average rates notdisplayable. all of these things that i'm using to make these decisions, that ripehouseis using, you can toggle through them individually. ryan: yes and i think, can we show peoplebecause i think it's absolutely awesome, the total for public housing. a lot of peoplewouldn't know when public housing is in an area and so if you turn that on you can actuallysee the public housing. i think that's an awesome picture of ripehouse.jacob: like i said this is the toggle for public housing, it's a red toggle. it's 2%housing as the average in darwin. the state or the local government there is 7.3% however,this area or any these areas you can click on to work out exactly what's in that area.we can click on this zone here which is highlighted

and see that his particular area has 11.2%public housing and it has 68.8% rental in the city.ryan: yes, so more than one in ten houses are public houses or units in that area.jacob: yes, and it also shows you this is probably one of the highest rental city inthe suburb and you can see that the rent and income are there as well.ryan: yes. as soon as you get to show people that, i just thought that it is so awesomebecause. i don't know where you can find that data otherwise and to see it like in littlepackets of suburbs it is just so awesome. so if you want to avoid that you can makesure you avoid it or if you want to target it, some people like to target that then youcan do that. so let's go on from here. we

want to drill down into these properties.what's up? what's our next step? jacob: sure. we have got our areas nominated.we need to have a property that's now relevant for capital growth strategy. in order forthat to happen the property has got to be the most in demand property type. it basicallycan't be a [inaudible 19:41] in the suburb. it's why people are drawn to that suburb,it's where new residents and utility, people want to live in that type of property in thesuburb. ryan: okay. so how do we find out what thattype of property is? jacob: this is a feature that basically hascomprehensive suburb information for darwin. click on that over-light around what's happeningin darwin. it would tell you a few things.

it's got a wealth of information of 154 properties.the most in demand properties are 3-bedroom apartments in darwin and it's is a comparativelyhigh number of renters compared to the local government area, a high crime compared tothe states but you don't generally see that with inner city suburb areas and darwin hasaverage concentrations of public housing. ryan: so we can see that 3-bedroom apartmentsare what most in demand in the area so that's what we are going to look for. is that right?jacob: yes, absolutely. we can be a little bit flexible. a two-bedroom unit wouldn'tbe completely disregarded, so it is the simplest approach you're seeing at the moment of howwe sort of assess the property but you can still be a little bit flexible with that ifit is quite similar.

ryan: okay, so we have identified that. nowwhat do we do? do we just start clicking on properties to see what they are?jacob: yes, we can definitely do that. we click on an icon now as an example. this is59/52 mitchell street darwin. it's a one bedroom one bathroom unit. we can see the images forthis property and it does look very nice. ryan: yes. it doesn't really line up witha 3-bedroom apartment thing, does it? jacob: no, it doesn't. i'll skip forward nowand go to the strategy window here. it has ticked the boxes for suburb, it has tickedthe boxes for area, no property strategy is recommended for this property.ryan: yes. jacob: what we can do, we can filter whichis going to save us a little bit of time.

let's get 3-bedroom apartments and you displaythem on the map. ryan: awesome.jacob: okay, so there are 19 of those currently for sale and you can click on any of these.it's going to basically draw us down really quickly into what's relevant. this one onceagain looks really nice. i might move to darwin [laughs].ryan: yes, i would there [laughs]. i was going to say that.jacob: it's very nice. so we can basically start seeing that this is a very high classof property but we are moving through into the conditional analysis of the property now.ripehouse is able to analyse the description text used by the agency to determine - wehave a pretty good degree of certainty of

the condition of the property. i'm lookingat the sentiment used by the agent. it is again something you can override if you disagreewith but this is going to be used to find comparables for the property in part of ourappraisal stage. ryan: yes.jacob: let's just leave that. it's great condition property. we'll click that as a good condition.we can see this property is on the market for over a year. it is sitting here and is$1,090,000 as a starting point. it's then started back to potential option, potentiallya price withheld. it sat there for quite a while, popped back on again on the 6th ofjune 2014. i am actually probably assuming this is dropped off the market completelyor they didn't actively promote the property.

it has now come back on to the market on the6th june this year $1,050,000 and then on the 6th of august it is also then been droppedagain to $950,000 property in context. it does seem to be a high purchase price there,maybe overly ambitious. it is a suburb that is in demand but this property may be faroutlaying the general property requirements or demands or it may be an unrealistic expectationfor price. once again we can see all the criteria forthe suburb, all the important information - average for sale, average for rent price,average sold, days on market, for sale volume which is yearly, for rent volume, sell volume,government activities there is no government activities - there is no definable governmentactivities in this area this. this is talking

about the way that the government is adoptingchange which is only looking for [inaudible 24:05] around government policies in elections.vacancy rate is very low in the suburb, it is actually rounded down to zero. the roundingis rounded down to a thin so it is actually rounded down to zero which is 7.2%. that'sactually a low figure of yield compared to other yields and so vacancy rates comparedto other vacancy rate fees as you might see because it looks at all properties in thesuburb and not just currently for rented or rental properties available for rent.ryan: yes. it looks at every property? jacob: yes. that's the whole scope of what'spotentially government. ryan: yes.jacob: we can move forward to see all the

individual area information. this particulararea has 0% public housing, average to lower than average rent for the area. it's justclicking on average quarter. income is higher than average, slightly low to average numberof renters, basically comparable number of units and a higher yield than average whenyou look at the suburb. ryan: yesjacob: what we're doing and the reason why this hasn't been recommended as a propertythat's relevant to a capital growth strategy is it is not in a condition less than averageor below average condition that allows for cosmetic improvement to a property. it's basicallyan off the plan property or a very high class of property. it's not going to allow scopefor improvement or basically allowing you

a need to plan or allowing you an extra channelto increase growth. it is the switch we have turned on for capital growth strategy andyou can ignore it. if you know that the two things to look for is in demand property typetick that box and this property is to be average or below average condition, it won't recommendit as the absolute best property in the suburb, for sure.ryan: i think that's good because a lot of people might take those first two steps orfind a suburb and then find an area within the suburb but then it is good that the suburbactually shows you, well this probably isn't the best property for capital growth. yes,it's in the suburbs, yes it's the right type of property, but yes it's probably not goingto be the best strategy for you so go back

and look at something else.i think that's very good where people can go through and yes you can do your own analysisbut t for it to be able to say well here is a red flag for you that's going to be veryvaluable to people who may be outside investors who don't live in darwin and don't know thearea. jacob: yes.ryan: i just love that it does it for you and even though you can go and look at itall yourself you can get an indication straight away whether or not this is likely to fitthat strategy. this is going to save you so much time and you don't have to go throughand do all the data yourself on every single property in the area.jacob: it's about time but it's also about

finding the absolute best property for yourcriteria and for your strategy. ryan: yes, that's it, like being able to findthe right property and if you invest in that and then it does go up in value then obviouslyyou can leverage that to grow your portfolio faster. so taking the time now to go throughthis data and to get these suggestions, for a lot of people might mean they can grow theirproperty portfolio faster because they are buying the right property rather than justa random one. jacob: yes, absolutely. i suppose the nextstep is we can proceed with this, for example this cycle i suppose. we have set the conditionof the property and we can start looking at comparable properties throughout and startassessing and the price value of that property.

ryan: yes.jacob: well, it's doing as it's pulling in. we did notice that was over a million dollarsand it's almost 50% more than the median in the suburb. it's probably the best or oneof the best properties in the suburb. so, finding comparables is going to be difficult.it's going to be a problematic exercise because it's very hard to value or price that typeof class of property. it might be a unique or once off. what the [inaudible 28:14] does,it pulls in, sort the properties to begin with in similar condition, in a similar propertytype, same number of bedrooms and as close as possible and it works its way back formthat so then the for sale listings in the previous quarter. just because we can if wehave, this is not a formal valuation that

is proposed to a bank. this is something foryou to act upon in negotiating with an agent and assessing a fair market price for a property.ryan: yes and for you to understand what the market is doing and what houses are actuallyselling for or what they are listing for so you can see whether this person is overlyambitious or if the property is priced right. is that correct?jacob: yes, absolutely. we can't see, really quickly, we can't see a property here that'ssimilar for over 800k and this property is sitting on over a million and it has beenon the market for quite a long time and they have dropped it by 12%.we have got for-sale listings here in the mix as comparables, it is just because theyare so relevant and they are so new and because

we have got a reliable sample size of for-salelistings and we know that generally the listing price, the agent discounts them x amount downto a sold price. we know that number so we can discount for-sale properties into a soldcomparable. ryan: okay.jacob: they are not given as high priority as the sold but when we don't have that samplesize of sold comparables we do start bringing full size into the mix just to give some sortof clarity. ryan: yes.jacob: but that the same process is applied into rental comparables and what we're doingwe're picking the top six comparables for-sale and for rent and then the net is going tobe averaged and moved across into the appraisal

stage. so that number was 650 as the comparableprice for this particular unit. this is probably something you haven't actually seen before.what it will let you do is move that price through the location of the property. is theproperty close by to school, shopping and transport which are things that people generallypay premium to live near and if they are far from that thing that they actually need andthat amenity to fit their lifestyle they will pay less. if it's in a high cluster publichousing we know how that generally affects valuations and appraisals for property inthe suburb and we reduce the appraisal price for that. so it is just putting the propertyin the location context. ryan: yes. a lot of people ask how close theproperty is to shopping and to transport and

stuff like that, especially if they are investingout of the area and they don't know. it's good to know how that affects price and thingslike that. jacob: absolutely. and it does affect pricedifferently for different suburbs or regional centre whether you are 3ks away or 10ks awayor 500 meters from a shop. everyone drives around when there is no traffic so it doesn'treally matter. it's not going to have the same effect on you having to drive 5ks inthe middle of the seabed of sydney to go to your local shop, as an example. so we do writethat and index that by some of the types of suburbs.it does come down to the individual suburb. it really is to get your mind thinking abouthow the location of this property is affected

by the appraisal of it and then use this informationin negotiating with the agent and classifying and putting this property into context.ryan: yes, awesome. and then i can see we're up to the report tab, so what does that generate?jacob: yes, so all of this information we talked about in these tabs can then be +printedoff into a report for you and you could remember that report. it's just that it's loading upin a separate window so it's going to be hard for me to show that.ryan: that's alright. so basically everything that we have just looked at generate intoa pdf document. is that right? jacob: yes, and that's over twenty pages ofkey information for that property. you can grab that. you can take it to an open-home.you can use it as your reference and you could

start putting your conversation you have withyour agents, things you find out as a person doing one-on-one research with that propertyagainst that report. ryan: yes. even having a conversation withyour spouse that would be pretty useful because i think it would be usually just one personwho is keyed into it and they use all the software and then someone else would justkind of go along for the ride. obviously i'm more into this than my wife so for me to beable to generator a report and take it to her and say well here's the relevant things,it is going to be easier for her to consume than through the software which she probablyhasn't learn how to use because i use it, you know.jacob: yes, big time, absolutely.

ryan: yes, that's awesome. so that's reallycool. i really like it. my favourite part is probably how it breaks down the suburbinto different areas and then you can see the zones that target capital growth. i thinkthat was really awesome. jacob: yes.ryan: and then being able to see comparable properties on the market and stuff like thatwhich is something that you usually get in a paid report or you need to pay for. therefore,the fact that it can pull that sort of stuff is really cool as well. is there anythingelse that we should highlight to people? jacob: there are pretty more features andthings we can do. not so much related to this, just general concepts. we could probably goon for quite a few of these catch ups but

i think generally just in relation to thatlast point about the comparables and these formal valuations. you need to be able toact really quickly and you need to be able to do that on current information. if a propertyor suburb is moving, we have come to darwin because it's got a buy trigger that's justhappens for capital growth. we need to get in there. we need to have the informationand basically have a volume of information that is going to give us the answers thatwe need and to be able to do that sustainably until we find the property. that actuallytakes a lot of work that can be done using tools that helps us to do that. so, you areacting in a timely manner and waiting ourselves through everything to do that.ryan: i know how to find a lot of property

data but it's such a mission to find it all.most people don't know how to find the data that i know how to find. so even for me whoknows where to find the data for free, you wouldn't want to do it when you can have atool that does it for you. i think for people who don't know how to find that stuff, thisis obviously going to provide massive value to them. i think it's going to be good forpeople even if you're considering a certain area as well you can then drill down intothat area. maybe you target capital gains, maybe you are not. maybe you are trying tobuy a house in your local area, you can really target streets in the areas and stuff likethat. jacob: i completely sort of see that's a perfectexample as a home buyer. we've got a subscription

level for a home buyer particularly. theycan view all the capital gains strategy functionality. i just see a home buyer as an investor witha capital gains mindset. ryan: yes.jacob: that's because it's the biggest investment that they make for a long period of theirtime in most cases of their life. it has to be giving capital growth to them. if you haveto buy because you want to occupy close to your parents or close to your family or closeto the children's school. if the children's school is located in one position [inaudible35:26] around that is a very large area and you're willing to accept living there in anyof that area, it is definitely better capital growth potentially in one part of that thanthe other and it's not going to be a flat

surface.ryan: i think a lot of people who are home buyers actually don't buy their dream hometo start with. they buy somewhere and hope that it grows so then they can sell and moveon to the next thing and eventually get to their dream home. so they can use this softwareto find their first area that they can buy in that is more likely to grow that it mightget them to their dream home faster. jacob: absolutely. yes. if you don't wantto handicap yourself. ryan: no, totally. so that's awesome. thankyou for showing us through that. i really appreciate it. if anyone wants to check outtheir software we'll go live on wednesday. is that right, the new version?jacob: that's right, midday wednesday. this

is version 3 of the software you are seeingnow. it's been almost a year in development by same version 2. all of the feedback we'vehad from that working through helping people using the software but then we also had onehundred investors using the software as data testers for four weeks. they basically dideverything possible to the software that you can imagine and gave feedback and refinedit based on that. so it has been through all these process and this is launching on wednesday.ryan: yes, so that's going to be very exciting. if anyone wants to check it out you can goto www.onproperty.com.au/house. that's my affiliate link, you can check it out throughthere. you are not going to pay any extra through my affiliate link, but obviously it'sgoing to help on property. or you can go to

www.ripehouse.com.au as well, if you don'twant to go through my affiliate link. jacob: there is going to be a launch day specialwhich is a 20% discount on the subscription price that's activated from the link that'sassociated with you as part of the launch which you will be a part of.ryan: well, there you go. so if you go today and you go through my link which is www.onproperty.com.au/housethen you are going to get access to that special offer as well which is awesome.so thank you so much for creating software which is obviously extremely powerful andis going to help a lot of people and for taking the time to show us how to use it.jacob: no problem ryan. i really appreciate the time and thanks for sitting through itwith me.

ryan: no worries. if anyone has any questionsor anything how can they best get in contact with you?jacob: i am at jacob.field@ripehouse.com.au or any of the pages through ripehouse emailor check for getting in contact. ryan: awesome. i know there are things thatwe didn't cover today guys, like flipping strategies and cash flow strategies as wellbut we will save those for another day and go through them as well.alright jacob, thank you very much and hopefully we can get together again and talk about anotherstrategy. jacob: sounds great ryan. thanks again.ryan: alright, cheers. how to find capital growth areas in australiausing ripe house (ep239)

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