Ten with Ty - Your Investing Podcast

From Struggle St to Millionaire's Row - Property Strategies with Jo Vadillo

• Tyron Hyde • Season 1 • Episode 14

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Join property expert Tyron Hyde and guest Jo Vadillo, a savvy property buyer, developer, coach and investor, as they discuss Jo's journey from humble beginnings to becoming a successful entrepreneur in real estate. In this engaging episode, Jo shares insights on building a diverse real estate portfolio, the importance of adding value and navigating the property market as an independent woman. She candidly shares her experiences with clients and portfolio successes while addressing the common challenges women face in the property market. Discover valuable investment strategies, avoid common pitfalls, and explore innovative paths to financial freedom. Whether you're a seasoned investor or a first-time homebuyer, this conversation offers guidance and inspiration to achieve your property investment goals.

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Key Takeaways:

  • Start Early: Jo emphasises the importance of getting on the property ladder as soon as possible, citing her own journey's turning points.
  • Add Value: Invest in properties where value can be added, whether through renovations or strategic developments.
  • Financial Planning: Utilise professional advice from mortgage brokers and financial planners to maximise returns and avoid costly mistakes.
  • Overcome Fear: Build confidence through education to empower decision-making, especially among women in real estate.
  • Diversify Investments: Consider varied geographic locations and types of properties to establish a robust portfolio.
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Tyron Hyde is the CEO of Washington Brown Quantity Surveyors

0:00:00 - (Tyron Hyde): From Struggle street to Millionaires Row.

(Jo Vadillo): I was the poorest kid in the block, you know, and I think that was drummed in time and time again.

(Tyron Hyde): Jo Vadillo took her first bold step onto the property ladder and she never looked back.

(Jo Vadillo): It was something I did for me and I did it on my own and I really, I really love that. I think that gave me a lot of power, a lot of confidence.

(Tyron Hyde): Today, Jo is a buyer's agent and mentor inspiring others to achieve their dreams.

(Jo Vadillo): I know I've changed lives, you know, I know that sounds very dramatic, but people thank me a lot for holding their hand. And like a lot of my clients are single women. Women have come out of divorce. They're nervous first-time buyers, a lot of them, and I'm there to support them.

(Tyron Hyde): Discover the strategies to her success on Ten with Ty.

0:00:45 - (Tyron Hyde): Hi, I'm Tyron Hyde, the CEO of Washington Brown, the property depreciation expert. Now I'm a qualified quantity surveyor and also a best-selling author who's helped hundreds of thousands of property investors over the years pay less tax through depreciation. I'm also an avid investor which is why I created the podcast series Ten with, Ty where I ask the smartest people I know the same 10 questions to unlock the keys to their success and hopefully leave a playbook for my family and your family, too, about investing. Now this podcast is general in nature and not specific to your financial circumstances. We always recommend you sit down with an accountant or financial planner before making any investment decisions. Now let's get on with the show.

0:01:39 - (Tyron Hyde): Hello and welcome to Ten with Ty. Today's guest is Jo Vadillo. She's a property investor, property developer, property guru and property coach. She's also a book author, co book author of Secrets of Property Millionaires. We're both on the front cover. Welcome to Ten with Ty, Jo, thanks for having me.

0:01:55 - (Jo Vadillo): What an intro. I love it.

0:01:57 - (Tyron Hyde): Thank you. I read in your chapter that when you grew up you spent the first 10 years of your life sharing a bunk bed with your mother at your grandparents' house. How did you go from Struggle street to Millionaires Row? What was the secret that you found, Jo?

0:02:08 - (Jo Vadillo): You know what it was, not wanting that, that version of a childhood for my kids was a big motivator and not to take. My mum was 17 when I was born. She tried. She actually put herself through university. Yes we did share bunk beds in a very small room my grandparents' house. So she tried really hard. It was very valuable for her to give me a really good education. So she did put me through a really great school and I was the poorest kid in the block, you know, and I think that was drummed in time and time again. Like, you know, other kids were going on holidays where they'll, you know, overseas skiing holidays and all the rest. And I was wearing, you know, Kmart clothes from two years ago. So I just, I just didn't want, I felt it, you know, and I didn't want that for my children, I didn't want it for me. So I was very ambitious to be able to give my kids, you know, an amazing childhood, but also to not have to scrimp and save and be, you know, constantly micro-checking your funds and things like that.

0:03:07 - (Jo Vadillo): And I also watched my mum grow up as well. Like, you know, she met my stepdad, they built a house, they bought their first house together, they had their first baby together. My brother was born when I was in year seven. So I was, I was privy to a lot of the things and sacrifices they did to get on the ladder themselves growing up.

0:03:24 - (Tyron Hyde): Was there anyone that was a financial motivator for you?

0:03:27 - (Jo Vadillo): Good question. Isn't it funny? My motivation was more to rise above my station at the time. It sounds terrible, doesn't it? But a motivator, you know, my first, like serious motivator in that space really hit me in my 30s. So I would have to say a lady called Rachel Barnes who started up a business called Property Women which I went on to acquire. She was definitely my first mentor in that space.

0:03:52 - (Tyron Hyde): Well, tell us a bit about Property Women and what are the issues? Well, tell us a bit about Property Women to start with.

0:03:58 - (Jo Vadillo): Property Women started in 2006. It was a response to the fact that there was nothing else out there in the Australian market for women looking to get educated. And the fact is, I mean, yes, there was plenty, there's other educators out there, but there were just a different journey of education and women had different struggles and they're trying to get it, you know, raise a family and they didn't want to ask dumb questions or perceivably dumb questions in a, in a space where there was also, you know, men or they thought judgment and also property.

0:04:25 - (Jo Vadillo): Even when I entered into the arena, I saw things like property development as a man's game. Isn't that terrible? I mean, I'm probably showing my Gen X position here, but I didn't even think about it being a part of my own journey. So that was very much a response to the public's need and when I just googled one day women, property, it came up, it just happened to be serendipitously an event coming up that fell on Saturday in Sydney.

0:04:47 - (Jo Vadillo): I went along to it. My head fell off my shoulders with like, I didn't even know what equity was. I didn't know how I could use it. I was already very interested in property. I'd already started to get on the bandwagon and watched a lot of the British renovation shows and things like that. So I was already a little bit. I love the accounts tangible and you can change it and you can add value. So I was kind of already, you know, drinking from the Kool Aid. But then I went, I saw live examples of, you know, other women who are doing amazing things. So that's where the, you know, the infancy and that, you know, Property Women started from. And then I began speaking from the stage on that, you know, we went, did events all around Australia and the evolution of the business still exists. You know, we're there, we introduce people to different people that, what do you call it, their property expert team that they need.

0:05:34 - (Jo Vadillo): So whether you're in WA or you know, Darwin or you know, Yeppoon, I can help you get a broker, an accountant, I can introduce you to a buyer's agent if you need. We've got online education there as well. So very much about helping, supporting and creating community for women to further their property careers.

0:05:53 - (Tyron Hyde): Fantastic. Is it like a membership subscription or is it a one-off fee?

0:05:56 - (Jo Vadillo): We have a membership subscription called the Buyer's Advantage. So that's where you actually do get access to myself in an open forum so you can actually ask me questions. So if it is like, you know, I'm coming to auction, I don't know what to do. Who do I ask if I need some support and financial planning and you know, can you help me look at this property? Do you think it's going to be, you know, a great property that I can potentially split and you know, build on the back of etc.

0:06:21 - (Jo Vadillo): So the buyer's advantage is of course that we do offer through our portal.

0:06:26 - (Tyron Hyde): And how many people are part of that program?

0:06:29 - (Jo Vadillo): We've got all up 4,600 women in the community and the program is only just launching. We had a previous program that I did shut down just before COVID mainly because there was a lot of face to face events. So as the entire world changed and Covid became very much a zoom environment that allowed us an evolution of what that course looks like. As well.

0:06:49 - (Tyron Hyde): Fantastic. Now you mentioned developments and women not doing developments, but I believe you're doing a couple of developments yourself. How are they going? How are you building from my point of view? How are the building costs looking like?

0:06:58 - (Jo Vadillo): Yeah, okay, okay, look, you know it's, yeah, look it's been an education and I knew what I was getting into and the reality is I put our plans on ice a little bit. Like many did, you know, in lockdown and I didn't want to wait any longer. Like I'm building one of two properties. So one we've just finished up and that's a dual key property that we did. I did the split and all of the development applications, DA the site works. Everything was done from my desktop in Sydney for a property in Brisbane and I did all that in 2021 and then the build process came through mainly in 2023.

0:07:35 - (Jo Vadillo): Then I'm building the Taj Mahal of all houses in Sydney and that's our family home. But I can't wait for prices to reverse. You know, like, you know, even theory that, you know, genuinely probably not going to come back the way people anticipate. But I've got to get on with my life. I've got to build this house. I already know that I'm not going to over-capitalise and my children are getting older and I want a nice new shiny house. So you know, I got on with it.

0:07:59 - (Tyron Hyde): Sounds like you deserve it. You know there's a thing called the Building Price Index which is like the CPI, but it just focuses on construction costs, labour, materials and the AIQS which is our institute has tracked this for about since 1970 and I hate to tell you but in that whole time the BPI has never gone down. Good news front. I did have a meeting with probably the second-biggest developer in Sydney the other day and he said to me that he's actually started holding off tendering trades because he believes that construction costs will come back a bit. So there's a little bit of hope for you there.

0:08:32 - (Tyron Hyde): Dwelling commencements are half what they were in 2021. Not a lot of developers can get the projects off the ground because of building costs. So there's going to be more trades available which hopefully will bring your building costs down a bit.

0:08:44 - (Jo Vadillo): Because I've got another one up my sleeve and I'm waiting on that one. So this is actually good news.

0:08:51 - (Tyron Hyde): Well then you always got to go, well you give me a good price on this one, I'll give you the next job is the old trick, isn't it?

0:08:58 - (Jo Vadillo): That's it, that's it. So, you know, my accountant said you're mad to build and then you're even more insane to do two at one time. So circumstantially it became a staggered event, but the one that we did actually just finish, it's a ripper. Like in terms of an investment, it's. Yeah. Been great.

0:09:16 - (Tyron Hyde): And you've said you've got 12 in the book. What are you up to, like 14 now, are you?

0:09:20 - (Jo Vadillo): Oh, no, you know what? Not yet. Because I'm going to split one into three, so as in terms of investment properties. And that's. That's my 2025 project again. Like my husband Greg said to me, look, can you just focus on one thing at one time? So that's going to be a 2025 project. So I'm actually going to take. Well, I guess that'll take one off the list and then add another three. So cool. Yeah, maybe you need to invite me back in two years and just see how grey my hair is.

0:09:48 - (Tyron Hyde): I think so. All right, you ready to play Ten with Ty? Let's go. All right, Jo, question number one. What has been your best investment?

0:09:57 - (Jo Vadillo): I'd have to say our principal place of residence. It is. Yeah, definitely. It's just picked a great pocket. There was a little bit of a sleepy hollow 10ks out of Sydney and in the 15 years since we bought it, even when I say the price of how much we paid, people like you can't even get a one-bedroom unit in the entire council area for that now. So. Yeah, and then I pulled it down. But you know, it's boarding one of these areas where the entry-level price is such a large gap from that where people have actually built new properties and they're selling for $3 million more. So it gives me a wide berth to play with. And that's where I'm currently building.

0:10:35 - (Tyron Hyde): Yeah, fair enough. And it's always hard to be that CGT-free principal place of residence. Right, Absolutely.

0:10:42 - (Jo Vadillo): Yeah, yeah.

0:10:43 - (Tyron Hyde): It's pretty unique in that Australia has that law. It's not many countries in the world have a CGT-free home. So advice. If you can get on the property ladder and make it your house, keep it. All right, question number two, Jo, what has been your worst investment?

0:10:57 - (Jo Vadillo): I literally need to go fetal in a corner for a few hours after this conversation. You know what it is? It's the one I didn't buy.

0:11:05 - (Tyron Hyde): Oh, really?

0:11:06 - (Jo Vadillo): Yeah, yeah, I think it was around when, 2009? No, it would have been around 2009. So it was a, you know, not a great era of buying into the investment scene. But it was Surry Hills townhouse and I didn't buy it. So it'd be on the market for a little while. It was $570,000, and it was between me and someone else. And the agent said, literally, whoever gets here first with the signed contract. And I wasn't ready to jump until I did a pest and building report on it. So I, you know, I know so much more now, and I know I can pull favour and rank really quickly because I've got such good connections. So I wouldn't be so scared about things like that. So I would have just gone, great investment, you know, like blue chip all the way through. Yes. It needs a little bit of renovation work, but I know I would have made so much money just sleeping. So even when I'm in Surry Hills, if I drive past this property, it's like, no, I don't even want to look at it.

0:12:02 - (Jo Vadillo): My worst investment was the one I didn't buy.

0:12:05 - (Tyron Hyde): It can do your head in, though. Thinking of those things. You know, how many places I have to drive. Like, when I first started doing work for Meriton, they were selling three-bedroom units with sweeping views over Pyrmont for $220,000. Right. 

0:12:20 - (Jo Vadillo): It just sounds like chicken feed now, but it is still. You still had to come up with the money then. But, yes, you know, just how much money you would have made. Yeah.

0:12:28 - (Tyron Hyde): Yep, yep. All right, question number three. I'm looking forward to this one from you. What has been the most invaluable investment advice you've received, particularly since you've, you know, come from humble beginnings.

0:12:39 - (Jo Vadillo): Buy property that you can add value to. Buy property that's got a twist. So for me, one that I did the property development on a couple of years ago and just built on, I actually bought that property in 2009. So I knew all along I was land banking for a different day when I had some funds up my sleeve to actually come back and play with it. So I would say it's something you can add value to. It's not just a set and forget it. It's something that you can tweak. And it could be that the property looks great, but, you know, you convert a formal dining room into a fourth bedroom, or, you know, maybe it is ugly red brick, but you know you can render it and paint it and all the rest when you go to sell it. So it could be a fantastic street premium location. It just happens to be one of the ugliest houses on the street. So for me, that's always been like a really good investment decision.

0:13:24 - (Tyron Hyde): I might just add a little bit on that because we look at construction costs all day, every day. I've seen so many people over-capitalise. So I might do a depreciation report on a terrace in Paddington, and the next door one was renovated at the same time. One client might have spent 300 grand, the next client spent about 900 grand, and it's exactly the same renovation. So for me. My tip would be to, when you're doing a value add, keep it to around the 50k mark because that kind of. With the carpets, you're just uplifting. The carpets, painting, the ovens, the dishwashers, the stuff that, not superficial, but can quickly add value pound for pound more than doing a $500,000 renovation on a terrace, which can go to a million bucks. You're far safer on a 50k, if you ask me. But that's just my advice of looking at.

0:14:09 - (Jo Vadillo): And I say that to my clients also because they do watch things like The Block and they come out and they're like they're going to pick up the biggest dump ever and think that I can just shine it all up and then sell it for some gazillion dollars. But the reality is, I always say to people, it's going to cost you more and take twice as long than you anticipate. So if it is just cosmetic. Exactly what you're saying, it's fresh carpet, it's changing the, you know, light switches and, you know, just doing those little modest bits and pieces. But you're using the shell of the existing house. That's going to be where you get your best return.

0:14:37 - (Tyron Hyde): Are you suggesting that some of these renovation shows don't show the whole picture Jo?

0:14:41 - (Jo Vadillo): I know, I know. This could be actually groundbreaking. This is the scoop of the century here, Ty.

0:14:49 - (Tyron Hyde): Make me laugh. All right Jo, question number four. What is your ideal portfolio mix?

0:14:56 - (Jo Vadillo): For me personally, I'm residential. Like, I don't have commercial property or industrial. And yet. Well, yeah, I'll sit on that for a bit. But for me, an ideal portfolio mix is like diverse areas. So I've got property in Brisbane and New South Wales. So Brisbane, southeast Queensland, and mix of blue chip, high yield. I've also got a couple that are really high yield, you know, in the areas are probably deemed slightly more working class. But they're neat properties. They perform so well. I've held them for a long time and they rent out. In fact, my vacancy level across all my portfolio has been minimal. So, you know, for me that, that's, that is happy. I feel it's really controllable. And the properties that, you know, I'm acquiring, all the ones, like I said, I've always bought things that I can split or I can put a granny flat in the back or I can do a really light cosmetic upgrade to it to, you know, see a return on investment.

0:15:52 - (Tyron Hyde): What areas are you looking at now for your clients? Any particular hot spots? As Terry Ryder would say.

0:15:58 - (Jo Vadillo): , Newcastle is, like I used to do a lot of stuff. So, you know, I'm Sydney-based but we've got, you know, staff and you know, in the Brisbane market and in Sydney. But when clients come to me and they've got 700 to 900,000 to spend and Newcastle is becoming increasingly less affordable, like it's just, you know, you're creeping out further and further. So I've been very much looking sort of west of that towards East Maitland area as well because, you know, in the last couple of years they put a new public hospital in that cost them half a billion dollars. And this predates, I mean, this is because the infrastructure was coming from the state government because of the climb in the population numbers as well.

0:16:34 - (Jo Vadillo): So that particular area has performed really well. So that's East Maitland. It's got the new public hospital. Stockland's put in a new shopping center that was about $420 million that's only been in there since maybe 2020. I could be wrong on my dates there, but it's, you know, employment-wise, it's fantastic because you've got people desperate for housing because they work in the mines, they work in the wine industry.

0:16:55 - (Jo Vadillo): Wining and mining. You know, you're 40 minute's drive still from Newcastle beaches. So it is, it is a good pocket. And it's just off the freeway from Sydney. So again, central coast, Newcastle. The employment is wide around that pocket there. I like it a lot.

0:17:09 - (Tyron Hyde): Very good, very good. All right, question number five. How would you invest - if Sebastian came up to you - Sebastian's one of Joe's sons -  came up to you and said, Mum, 20,000 bucks. I'm 20, he's 20 years old, mum, how would I invest that money? What would you tell him, you know?

0:17:23 - (Jo Vadillo): Out of all my kids, you pick, I've got three of them. Yes, he is the most entrepreneurial. He's the one that's showing that, especially at this stage. And he's almost 15, you know, he is actually buying and selling things himself now. So he himself, if he got in $20,000, he'd probably buy $20,000 worth of stuff and then sell it for 40. That, that'd be, you know, that's what he's doing as a 20-year-old and I hope he doesn't have this as a journey. I would be saying if you've run up any lousy credit card debt or you have, Afterpay? All that yucky stuff, you know, crap debt like that, I'd say clean that up and start afresh and perhaps look at things like shares. There's all those like, you know, the trade apps that are out there now. So I would say, and especially to him, because I know he's great at doing his own desktop research. Find out. I don't know. I'm not advocating for anything. I know one's called Sharesies. I'd probably suggest that he starts looking at some of those apps that you can actually start to make better than and start that investment journey. Because 20k probably isn't. Well, it isn't enough to necessarily get on the ladder. With me as his mum, I might be able to do some sort of fun matching thing going on there. But I would say clean up your debt and start to look at, educate yourself, you know, get educated, spend a little bit of money on yourself, you know, to see what is, what is out there. And I know there's different, well, there's plenty of different people out there selling those education tools. But do your research really well. Spend a little bit of money yourself and then start to invest it.

0:18:50 - (Tyron Hyde): Two things on that. Firstly, yes, credit card debt, it's really hard to beat on the market. Property or stock market, 17% per annum, which is what you're paying on your credit card. So I don't think Warren Buffett gets 17% per annum. Secondly, sounds like he needs to join Business Blueprint. It sounds like he needs to join that course.

0:19:10 - (Jo Vadillo): He has made so much money, like it's just insane what he does. And he will buy stuff off other kids they don't want anymore that's branded and then go, well, give someone 20 bucks for it and then go sell it for 70. So I'm just sitting back like an entrepreneurial mum, going, that's my boy.

0:19:29 - (Tyron Hyde): That's good. Sounds like he might not need the bank of Mum to get onto the property market.

0:19:33 - (Jo Vadillo): Hopefully I'll be borrowing off him.

0:19:35 - (Tyron Hyde): Do you own an investment property? Washington Brown has helped over 250,000 property investors pay less tax with the depreciation schedule. Visit washingtonbrown.com.au to pay less tax today.

0:19:45 - (Tyron Hyde): Question number six. You've just turned 50, you've got no money. How would you invest? And your parents died and passed away, left you $500,000. How would you advise someone to invest that $500,000? There's a financial disclaimer at the beginning of this.

0:20:10 - (Jo Vadillo): Can I ask, is this person in employment and single? Are we making those assumptions

0:20:14 - (Tyron Hyde): They're employed, but they haven't saved any money. I've got a lot of friends like that.

0:20:21 - (Jo Vadillo): Okay. If they're even in a modest income, I would suggest that they. I know people would say go and speak to a financial planner, but if you could, like, go and speak to. I'd speak to a mortgage broker and say, you know, this is my income. You know, if they've got nothing, maybe they own a car outright. If they're assuming they've got no other debts and find out what that maximum borrowing capacity is. And because I'm assuming then they'll be paying rent and what is it they can. Actually, I would get security at that age. I'd want security and I want to buy my own property.

0:20:48 - (Jo Vadillo): So if you're living in Sydney, you might be, you know, if you're renting a house, you may have to move into an apartment that you actually therefore own. And also if you can borrow just that little bit more and then focus on making, you know, paying down that asset so that you know your goal will be by the time you retire, you almost own this outright.

0:21:06 - (Tyron Hyde): And then it won't affect your pension. Your house won't affect your pension. It's your principal place of residence, right?

0:21:11 - (Jo Vadillo): Yeah, it's just security. I mean, this is the beauty, I guess, going back to my childhood. Ty. It's just that I felt there was. There was lacking security. And what property has given me is that I know if something happened to one of us medically, if I desperately needed money, I've got options. I can sell something down. I can get myself out of trouble or get a child. You know, I know I've got that behind me. And I think it'd be scary hitting your 50s and knowing you've got nothing. And that's what happens. A lot of people exit marriages where they sell a family home. They find themselves with half the capacity that they could then go back into the market and buy again. And I have a lot of women in Property Women that are coming at me with those sorts of, you know, what do I do? Like, I don't want to leave the area I'm living in, but I can only have X amount of dollars to invest in now. So this is an investment decision as opposed to a principal place of residence decision. And I help strategise with them what that will look like in conjunction with what advice they get from their accountant or financial planner.

0:22:07 - (Tyron Hyde): What about you, Jo? If you inherited $500,000 today? What would you do with it?

0:22:12 - (Jo Vadillo): I'd be very tempted. You know what I would probably do? I'd put it in my offset account immediately, right? I would do that. Yeah, I would do that. And once I finish the Taj Mahal that I'm building, I've got, you know, a bit of landscaping and things like that to do. So I think right now, put on the spot answering that question, I would think, oh, I get to do all of the things I want to do. Like if that whole party version of Jo kicks in where you're like, and I'm going to do lighting and the garden, it's going to be amazing. And I'll finish the pool off and I'll do a gazebo.

0:22:45 - (Jo Vadillo): But I do come at, you know, it's one of those things with property. It's, you know, making sure the business brain overrides the emotional brain. So I would park the money for now, let it, just let the dust settle and then come back. And yes, I probably would use it to build another, like just progress my portfolio. Because what I have done previously also and is that, you know, I'm 
self-employed, you know, run a company and I've got a large portfolio and I've got three dependents. So the standard banks don't always look at me and go, yeah, yeah, we'll give them more money. You know, that's just the reality of lending. So I have actually done capital raises before to do property developments. I'm not against doing that again or going to a private lender. So I think in conjunction with those other options that I explored before, I would probably jump into that splitter block that I'm waiting to do, build 3 on because I know what those returns are going to look like. It's going to be good. So I've just got to navigate that journey. Getting to the finish day where I'm not paying construction loans down, I'm actually getting the rent back in. So yeah, that's probably where Jo would end up.

0:23:49 - (Tyron Hyde): Cool. All right, question number seven. If you could go back in time and meet Jo Vadillo, a 20-year-old, living in Strathfield, I think you were?

0:23:57 - (Jo Vadillo): Oh my gosh.

0:24:00 - (Tyron Hyde): I grew up in Concord, so we could have gone to the same. What would you tell your 20-year-old self about investing, Jo?

0:24:06 - (Jo Vadillo): I would sit that person down and I would say like, seriously, start to squirrel some money away whilst you're also enjoying your 20s. Like that was a fun age. You know, I travelled a lot. I, you know, but I think if I could put that, you know, older head on the younger shoulders, I would definitely say buy and buy sooner. So when I got back from, you know, extensively backpacking and that went on for a few years, I might add, I then went and put myself through university. So, you know, so I did a master's degree in my late 20s. So I was kind of a bit of a late bloomer in that sense. And I bought my first property at 28 and I was just, I was actually very good at budgeting, I think, you know, travelling a lot, maybe become very, you know, careful with how, how I use my funds. So I think it, if I was at 20, I would suggest try and get on that ladder sooner. And I was nervous buying my first property mainly because it's, you know, the biggest sum of money you can even imagine at that age. But you know, if I could say you're going to earn more, your career is going to progress, you're going to, so I would say start earlier, get, you know, start to be very careful and conscious of doing something earlier.

0:25:10 - (Tyron Hyde): I had a bit of a similar journey. I went, I did two years at uni straight after school and then I deferred for three years, went backpacking around Europe and Asia. Yeah, came back and the number one thing I learned from backpacking, Jo, was that I never wanted to work for minimum wage again. So I came back and finished my degree. I don't think many people after having a three-year break from university actually come back and finish it, but I'm glad I did.

0:25:33 - (Tyron Hyde): So that was my experience.

0:25:35 - (Jo Vadillo): Yeah.

0:25:35 - (Tyron Hyde): Question number eight. What legacy do you want to leave your family or your community, Jo?

0:25:40 - (Jo Vadillo): For my community, I think in my capacity as a buyer's agent, I've had some beautiful feedback from people and I know I've changed lives. You know, I know that sounds very dramatic, but people thank me a lot for holding their hand. And like, a lot of my clients are single women. Women have come out of divorce. They're nervous, first-time buyers, a lot of them, and I'm there to support them. So, you know, it's like, don't take no for an answer. You know, don't go straight. Like they've gone straight to a bank and the bank said, you know, borrow this much. It's like, how about you go to a mortgage broker, we'll make this work. How about we certainly shift the strategy. And they've come back to me and said, look, thank you. Because I would not have actually done this. I would have just taken no for an answer and walked away from the deal. And I. So I know I've changed financial trajectories for people, you know, throughout my journey as a buyer's agent. And that's a beautiful legacy to have and leave. And I want to do that more because I find that so rewarding as well.

0:26:31 - (Jo Vadillo): And for my family, I hope I've given them my children or I will continue to give them the ambition and also help the guidance and the confidence for them to build this for themselves because I want them to hit their early 40s and not feel like they have to work so hard. You know, I want them to enjoy their life. So for them to start building a portfolio younger is really, really important to me.

0:26:50 - (Tyron Hyde): And what is the average age of a female coming to you from Property Women? Is it women age 50 or younger?

0:26:57 - (Jo Vadillo): I would say on an average age it might be mid to late 30s, but I certainly have women that are older. And yeah, so I love the first-time buyer, you know, like, I love helping them out because a lot of people don't know what they don't know until you go, you know, you need a solicitor. Right. So, you know, but I'd say somewhere in the late 30s would be the average age, but there's certainly a big gap there. And I've got women in their early twenties that have come to me and I'm like, this is awesome. I love seeing the successes at such a young age. And it's also the ones that think that their life's over and they're 49. You're like, no, no, no, no, no. We've got heaps of time. Let's do something with this. So I can help you get on the ladder. Absolutely.

0:27:35 - (Tyron Hyde): Are they single women or divorce women? Or just women in married relationships, but it's the female component of it, or how's that?

0:27:42 - (Jo Vadillo): Yeah, in general, you know what? But I've got a lot of guys in my database as well, so people will say, I've listened. You know, I've listened to you. I've heard you on this podcast. And also, I mean, I've got the two businesses. I've got Property Women and Advocate Property Services. So a lot of my clients are also men. And I'd say in couples, it's probably 50, 50 from. You know, one of them is more the driving force. They're the person that is probably more interested, and the other partner is just there. And they're like, here, I'll contribute to the loan, but I'm not. People tell me they're not interested in property, which to me is like, what do you mean you're not interested in property? This is crazy. But, you know, they know it's a necessary part of their acquisitions throughout life in terms of, you know, wealth trajectory. And that's. Yeah, so it is. It is a bit of a mix. But, yeah, I'm not. Yeah, a lot of them are through Property Women. They do probably do tend to be more single women. I would have to say that's probably the slightly larger percentage.

0:28:32 - (Tyron Hyde): Fantastic. What is the main issue that women investors face? Is it confidence or what is it, Jo?

0:28:38 - (Jo Vadillo): Oh, yeah, look, I would say confidence. And we're still dealing with. I mean, I'm hoping these younger demographics, and I'm hearing that that is changing, but especially the Gen X, it was still very much that whole, you know, the husband's still the big income earner. So a lot of women are still in that transition where you're like, you know, you can do this. You don't need to wait for a guy to help you. You know, it's almost like, oh, okay, I can actually achieve this on my own. I don't need to have a partner. So I'd say confidence is a big one, but it's also just having a partner around if they don't have a partner, someone to bounce ideas off. You know, I like this property. And sometimes clients will send me links as well. Like, what do you think? And I'll look at it and go, well, you do realise there's a, you know, Telstra tower in the backyard. Right. So because, you know, and because if you are a solo operator, you know, like, there's a lot to digest when you look at an open home. You know, you walk out of it, you go, hang on, I didn't see a laundry. So it's. Part of me is just being their wing person in the journey, you know, And I think that that gives them confidence as well, that they know they're doing the right thing and they're getting proper, educated, professional advice to support that decision.

0:29:45 - (Tyron Hyde): One thing I've learned on this podcast is a man is not a plan, Jo.

0:29:49 - (Jo Vadillo): That's right, a man is not a financial plan. And I bought my first property. I bought. This is actually a true story. True story. The first property I bought, I bought in my own name. I was dating Greg, who is now my beloved, but he. We've got all these open homes, and the amount of real estate agents would walk in and look at him and get his details, and he's a foot taller than me. And I'll be there going, dude, like, I. I'm the one with the mortgage. Like, you meant to be kissing up to me here. Like, I'm the one with the pre-approval. But, you know, I'm so glad I did that. Like, I mean, yeah, he was there. You know, obviously, he enjoyed the journey. He's a buyer's agent. He works with me. You know, like, you know. We love it, but it was something I did for me, and I did it on my own, and I really. I really love that. I think that gave me a lot of power, a lot of confidence, and it's. And I think I see that from a lot of my clients when they. On that settlement day, it's like, look what I did. And that's. That's super empowering to witness.

0:30:40 - (Tyron Hyde): Well, speaking of success, Jo, what does success look like to you? Building the Taj Mahal, I suspect.

0:30:45 - (Jo Vadillo): Yeah, you know, true success, I think, is, you know, freedom and time. I think it's really. That's. I created this business, and it's worked in so beautifully. When I reflect with my family, it's meant I've. I call the shots. You know, I'm able to be present when I need to be with my kids. So for me, I've been able to create a business that works in and around my lifestyle. It suits me very much. So. That, to me, is a big sign of success and just having that freedom. I don't have a boss, so I kind of dig that Greg does. I'm his boss. But no
 
(Tyron Hyde): Are you a good boss? 
(Jo Vadillo): Well, apparently sometimes. But you know what we argue with the most? Because he looks after his own clients and I look after my own. So yes, of course we know exactly what's going on each other's world. But the one thing when we work together is we argue about marketing.

0:31:35 - (Jo Vadillo): That'd be the one. That'd be the one thing that. So, so yeah, otherwise it's, it's usually a quite harmonious working relationship.

0:31:43 - (Tyron Hyde): Does he get an annual review?

0:31:45 - (Jo Vadillo): If he plays these cards right. He might even get a pay rise eventually. But.

0:31:52 - (Tyron Hyde): Excellent. I'm a bit like you, Joe. I wasn't born with a silver spoon. In fact, I saw my father lose all his money late in the late 80s. And so the final question is what this podcast is about is how to not lose money. Warren Buffett is quoted as saying, rule number one, never lose money. Rule number two, never forget rule number one. So what would be your advice, Jo? To not lose money?

0:32:11 - (Jo Vadillo): You know, one of my other favourite quotes that he did was to be.

0:32:16 - (Tyron Hyde): Fearful when others are greedy and greedy.

0:32:18 - (Jo Vadillo): When others are fearful. And I think about that a lot when the market dips in property because everyone goes, oh, I'm not going to buy because no one else is buying. And then all of a sudden, you know, all the sheep follow and you're like, hey, that property was $200,000 cheaper three months ago. You know, so he's, you know, he's a billionaire for a reason. So hang on to your money. You've got to spend a little bit. And by that I mean seek out and pay for professional advice. So if, you know, if it's a buyer's agent, you know, your budget allows, you know, if you're starting to build a portfolio, spend money on getting a really good accountant and potentially a financial planner as well. Spend a little to make a lot. A buyer's agent will get you a property that's not a lemon and potentially save you thousands on it as well. And find you properties that are off-market and by surrounding, by getting good, sound advice and setting yourself up properly initially, you know, you're going to thank yourself ten times over as the years go on. So yeah, I'd say don't make false economic decisions as well. So I like, for example, I'll buy a property for somebody for a million dollars and then they won't want to spend $550 on getting a personal building report.

0:33:24 - (Jo Vadillo): So it's like you know, let's not do that because then if the ceiling's about to cave in and you can't see it from where you're standing, that's going to cost you a little bit more than the 550. So, yeah, don't make false economic decisions. Spend a little bit of money and invest. And make sure you invest in getting a really good team of experts around you. You don't need to be the expert. Let them do the experting. But yeah, pay for it.

0:33:46 - (Tyron Hyde): Speaking of being greedy when others are fearful, etc, I'll tell you another quote, you probably haven't heard this one, but Harry Triguboff told me once, he said to me, Tyron, do you want to know the secret to my success? I'm not going to say no, am I right? Of course, Harry, what's the secret to your success? You're worth 26 billion. He said, listen to me, he said, Tyron, when times are bad, I buy land. By the time I get development approval, times are good again. Thanks, Harry, but it's a very good quote, I think.

0:34:14 - (Jo Vadillo): Yeah, absolutely. And the dark times are shorter than the good times as well. And I've seen it time again now in the market where, yeah, all the sheep follow and the prices go up and you're like, you know, if you were in a position to buy three months ago, yeah, that was the time to make a purchase decision.

0:34:28 - (Tyron Hyde): Fantastic. Well, there's one thing I haven't told you, Jo. There is a surprise question at the end of each podcast.

0:34:32 - (Jo Vadillo): Oh, great. Bring it. 

0:34:34 - (Tyron Hyde): All right. In the late 80s, right, the average house price was $175,000 in Sydney and the median wage was 25 grand. So about six and a half times earnings. Right. Today in Sydney, it's $1.6 million for the average median house and the average weighs about 80,000. So 20 times earnings. Right. It gets worse though. Back then stamp duty was about 3%, 3.5%. Today it's five and a half percent on a $1.6 million house. So that's worse. What advice and what three tips would you give the younger generation to get onto the property market today?

0:35:08 - (Jo Vadillo): So I'd say my first one is be prepared to not buy in your backyard, like, you know, in your area, like, be prepared to buy elsewhere. So. And also, okay, so that's one like. But yeah, if you live in Manly, in Sydney, prepare yourself to actually buy somewhere else, but you don't need to live in it. So it doesn't even. It could be another, you know, metro location or really bustling, busy regional hub. And that can be an investment property. So just get your foot in the ladder if you're 24 years old and you can just play plant it, make sure the rent covers it and it grows and by the time you're, you know, married and you're 32, you can sell it and use that towards a deposit in Sydney or pull equity out of it and you know, and continue to keep that in your portfolio.

0:35:46 - (Tyron Hyde): Yep.

0:35:47 - (Jo Vadillo): So the second one I'd probably suggest, you know, if they do look into some of those housing grants that are available and I know they can change, you know, with the government, but if there's something available, then they want to. And it could be that they're moving slightly out of area, 45 minutes away, an hour away. And I know you're meant to live in those properties for 12 months, often to be able to get some of those stamp duty concessions and other opportunities. Perhaps that's what they need to do. It's a small sacrifice for a long-term gain as well. Have a friend, a mate, live with you and share some of that burden so that you're not carrying that full mortgage as well and then keep the property, rent it out to someone else and then move back to renting in the premium suburb that you want to be in as well. So that'd be my second as well. And the other one is potentially just invest with friends. Look into that. It's one option, I'd always say be very careful and cautious because friendships and money can sometimes be a precarious dance.

0:36:35 - (Jo Vadillo): But you know, and look, I also suggest that you do actually have an agreement drawn up when you do that. But we've looked after a few groups like that where people are investing as friends. They're coming in, you know, renovating a property, holding it, they've got exit strategies. I've had a lot of siblings buy properties with me as well. It's always important to have an exit strategy. One of you could partner up and want to get out, you know, at a time that's not, you know, great. So do get some good, sound legal advice around that. But have the strategy in mind. And it could be invest with a friend, do something up, renovate it, put it on the market again, I don't love renovating and flipping, but my suggestion would be to pool your resources and have a good sound exit strategy. But that'll help you get additional funds to then go and do this again and start to snowball your wealth journey.

0:37:22 - (Tyron Hyde): Fantastic. Thank you so much, Jo, for coming on. Now, how can people contact you if they need some property advice from a guru?

0:37:29 - (Jo Vadillo): From a guru. Wow. You've got to have your people speak to my people. No, I'm very, very, very approachable. Advocateservices.com is our buyer's agency business, so you can find us there and put a contact through the site. And propertywomen.com.au is our educational portal for women. And you can then go through there, sign up to our newsletter as well as jump into the Buyer's Advantage course, if you'd like to have support there, but potentially not the full budget as a buyer's agent that allows you to get access to the brain's trust.

0:38:02 - (Tyron Hyde): Good stuff. Love it. Thank you so much again, Jo.

0:38:04 - (Jo Vadillo): Absolute pleasure. Thank you.

0:38:05 - (Tyron Hyde): If you like this podcast, don't forget to subscribe. And if you do and you leave a comment, send me an email to tyron@washingtonbrown.com.au and I'll send you a couple of my books for free.