On Property Podcast: Recent Episodes
Ryan McLean
https://www.youtube.com/watch?v=tuz3m5upSy4
Some experts claim there is an ideal percentage of renters in a suburb vs owner occupiers.
But what does the data actually say and what is the best % of renters in the suburb we are investing in?
Select Residential Property
DSR Data
Read this article: https://selectresidentialproperty.com.au/busting/whats-the-ideal-tenant-to-owner-mix/
0:00 - Introduction1:00 - Why people speculate that this is important3:25 - What does the data say (2 years)5:30 - 7 years of data5:50 - 12 years of data6:33 - Is this something to consider for suburb growth?9:00 - Why might this happen?11:10 - How to find % of renters in an area
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Property Data Dive Series
Why Population Growth Does NOT Predict Capital Growth (Data Dive)
Transcription
Ryan 0:00Some experts claim that there is an ideal percentage of renter's in a suburb versus owner occupiers where you want to invest in suburbs that have just the right amount of renters and just the right amount of owner occupiers. And not one way or another, that it's going to give you, you know, the best chance of renting your property and the best chance of selling your property. But what does the data actually say about what is the best percentage of renters? Do we want a high percentage of renters? So there's lots of people in the area to rent out property? Do we want a low percentage and mostly owner occupiers, which means there might not be as rental properties in the market? Is that going to be hard to then rent out the property? How does all this affect us? So today, I've got with me, Jeremy Shepherd from select residential property to talk through the data and to say, Okay, what does the data say about percentage of renters versus the growth that an area is likely to help? So thanks for coming on today, Jeremy,
Jeremy 0:56thanks for having me on your show. Right.
Ryan 0:59Okay, so what does the data tell us about this Goldilocks zone of just you know, the right amount of renters? I think, if I've ever heard it, which I don't know if I have, but it would be like around that kind of 20 to 30 35%. Mark, and then people say, you know, anything that's too high renters is probably not good.
Jeremy 1:20Yeah. Well, there's there's an argument where you say are too high renters means? There aren't enough owner occupiers taking better care of their property. There's too many other landlords you competing with over the over the other, the tenants available. And then the opposite is some people are arguing. Well, if there are no tenants there, how do we know that that anyone wants to rent there. But that's really just a case of, there's no supply of rental property, I would much prefer to buy in a location where, where there are no other landlords I'm competing with. But anyway, that's all very good data, we
Ryan 1:56heard from at least one expert in the field that has said you want to target suburbs with this range of renters. And you don't want to look in suburbs that have really low percentage of renter's because it can be hard to rent out your property. And I remember looking at that thinking, I don't know about that video that you and I have done on population growth versus capital growth. And the fact that, you know, population growth just kind of indicates the supply that already is existing and has been built over time, because people are waiting in the streets in order to move into a suburb or anything like that. If there's no houses there for them to move into. So when I think about rental demand in a market, I don't really look at percentage of properties that are rented, I would look at vacancy rates in the area. And I would think if there's less rental properties available, assuming the area still has good fundamentals, then you know, I I'd rather that area, because then you're the only rental property. And so
Jeremy 3:00right. Yeah, exactly. I mean,
https://www.youtube.com/watch?v=YveECmSbbNY
In order to get the best return on investment we are told to invest in the right suburb so over the long term they will outperform other suburbs over the long term.
But what I'm starting to see is that a lot of suburbs tend to perform extremely similar over the long term.
Read this article: https://selectresidentialproperty.com.au/busting/apples-oranges/
Select Residential Property
DSR Data
0:00 - Introduction0:58 - How comparing apples to oranges applies to property investing2:08 - Why doesn't extreme growth disparity happen?4:40 - Chance of better than average capital growth over the long term8:35 - The positives and the negatives of above average growth being hard to achieve9:25 - How can we get above average returns as an investor13:00 - Differences between 1 year, 5 years, 10 years and 25 years growth14:43 - What are the chances of picking a high performing market over 15 years vs 5 years16:40 - Can you determine high performers over the long term (30 years)19:10 - Radical vs marginal difference in price
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Good Schools and Amenities DON'T Create Capital Growth! SHOCKING RESULT!
Transcription
Ryan 0:00In order to get the best return on investment and achieve our property investment goals, we're told to invest in the right suburbs so that over the long term, they're going to outperform other suburbs. And you're going to end up you know, so much richer than if you purchased in the wrong suburb. But what I'm saying to say what image Jamie Shepard from select residential property is that a lot of suburbs in general, tend to perform very similar over the long term that yes, in the short term, there can be big disparities between suburbs. And there can be value in you know, picking your suburbs for the short term. But when you start stretching it out to 20 3040 years, a lot of these suburbs especially the choosing suburbs, with good fundamentals tend to perform extremely similar. So I guess this is kind of looking at short term versus long term investing. And Jeremy has got a great metaphor and analogy that can help us understand this, which is the concept of purchasing apples and oranges. So do you want to lead us into that, Jeremy? Sure.
Jeremy 1:03Thanks. Thanks, Ryan. Thanks for having me on your show. No, all right, let's say you walk into a fruit shop 100 years ago, and there's a crate of apples, and there's a crate of oranges. Now assume that the apples were one cent each and the oranges were two cents each. If the apples grew at a rate of 4% per annum, whilst the oranges grew at a rate of 8% per annum, then after 100 years, an apple would cost you 50 cents. And an orange would cost you $44.
Ryan 1:36Okay, imagine the beginning. Did I just start out at two cents? Did you say
Jeremy 1:40yes, oranges for two cents.
Ryan 1:43So in the beginning, oranges were worth twice as much as apples. And then in the end the end after 100 years, if they continue to have this disparity, and they grow the 4% apples versus 8% oranges in 100 years time, the owners are now worth 88 times more than apples. But why? Why doesn't this happen?
Jeremy 2:05Okay, well imagine walking into a fruit shop right now and you've got a hankering for some fruit. You're looking at apples 50 cents each, or oranges $44 each. You just you'd have to be mad keen on oranges to spend 44 bucks on one. Right? So
Ryan 2:23that week, most people wouldn't spend $44 on oranges. I don't know if you remember years ago, when there was the banana shortage $3 for a banana? I remember going months without a banana and then going in and just buying one banana.
Jeremy 2:40Again, well, I guess yeah, it all comes down to supply and demand.
Ryan 2:43I guess during that time period, I bought way less bananas than I would buy now when they're really cheap.
https://www.youtube.com/watch?v=T10DA4fZUO8
I might be able to buy my first investment property in the next couple of months. I am finally saving my first house deposit.
It has been a long journey and this episode I want to take you on a journey of the property deposits I have saved in the past. But why didn't I buy property in the past and what am I doing to save my deposit today?
Book a Free Property Strategy Session - https://onproperty.com/strategy
0:00 - Introduction1:33 - Where I'm at now2:22 - My 1st Deposit (Age 16)5:21 - My 2nd Deposit (Age 25)8:47 - My 3rd Deposit (Age 28)12:05 - My 4th Deposit (Age 31)18:58 - Getting Out of Debt21:55 - Saving My 5th Deposit23:39 - Do I Regret Not Buying Property In The Past?25:00 - It's Never Too Late To Get Into Property26:30 - Building a Large Portfolio27:32 - Property strategy session=
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Transcription
Ryan 0:00I might actually be able to buy a property my first investment property in just a couple of months, which is super exciting. I am finally saving my first house deposit. This is not the first deposit that I've saved, but Fingers crossed, this will be the one that will actually get me my first property. It is absolutely amazing what a difference a couple of years can make. In this episode, I want to take you on the journey of the deposits that I've saved in the past which I've actually saved quite a few and never purchased property. why I did that? Do I regret it? Because, you know, I could have purchased property probably around 15 years ago, which obviously would have grown But why didn't I What happened? And then what am I doing to save my deposit today. So grab yourself a tea or coffee or water and settling because it is storytime This is my journey. This has been a long journey and an arduous journey. But hopefully this will encourage you to go out there and to say that, even if it doesn't happen overnight, if we have a plan, if we strategize if we work towards it, we can get there eventually. And we can have an amazing life along the way, which I actually think is more important than buying the properties. I think the most important thing is having the amazing life, you buy properties as an insurance policy to give you financial freedom to give you choices in order to do that. So now I'm saving my deposit probably got around about the 15 to $25,000 put aside for property, I'm looking at buying something around about 350 to $450,000, with maybe a five to 10% deposit. So I probably need anywhere from around 17 and a half 1000 up to $45,000 for a deposit plus stamp duty and closing costs. So you're looking at another what maybe 1015 $20,000 in order to save for those closing costs. So I'm actually not too far away from purchasing my first property, hopefully in a couple of months. But let's go back and look over my life and see what got me to this point. Why haven't I bought property yet? What sort of things have I done along the way? So my first deposit was saved before I was 18. So I remember going driving out to Lythgoe with my dad at age 16 I had around $20,000 in cash, looking at properties around about the $100,000. Mark. So you're looking at 10 to 15% deposit plus closing costs there. I had the money in order to do that. So looking at those properties. The thing that was difficult for me at that time, being so young, only having a part time job was just serviceability, right. I couldn't get a loan in order to purchase these properties. And that really held me back at that time. I think if a bank was willing to lend a 16 year old $80,000 or $90,000, in order to buy a house, then I would have gone ahead and done that then and purchased a property in Lythgoe, what, 15 years ago, no, 17 years ago now. And we'll probably I don't know if I'd still own that property today.
https://www.youtube.com/watch?v=XSrDuSuILAs
We are so often told that if we want the best capital growth our property needs to be close to amenities. Good school, train stations and shopping centers or other public transport are often touted as key indicators of future growth.
But what does the data actually say about the affect of amenities on the capital growth of a suburb? The results from this one are extremely surprising.
Read this article:
Select Residential Property
DSR Data
0:00 - Introduction1:40 - Key idea: Price has already factored in existing amenities, which does NOT lead to more growth4:00 - How expansion of Brisbane airport affected prices short and long term4:45 - Do train stations affect capital growth7:55 - Be careful of starting and ending points of statistics8:30 - Do school affect capital growth11:00 - How do beaches affect capital growth12:55 - How does proximity to shops affect capital growth13:58 - How does walkscore affect capital growth?21:24 - What do we do with this data?26:04 - Price variability over time
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Transcription
Ryan 0:00We're often told that when you're buying a property to get the best capital growth, the best return on investment, you want to look for properties that are close to amenities close to really good schools, close to shops and shopping centers, close to public transport. How many times have you heard people say, you know, this is a great suburb because it's got all of these factors in it. But as an investor, what we care about is the return on our investment, how much is that property going to grow? How is it going to perform? And so is this actually important? And today, I've got with me, Jeremy Shepherd from select residential property to actually dive through the data on this one, yes, it makes logical sense that we want these amenities there. But does the data actually back up this idea that this is going to lead to higher than average capital growth? So I'm excited for this on Hey, Jeremy, how I
Jeremy 0:50can hire Ryan, Manuel, how are you?
Ryan 0:52Yes, very good. I'm looking to buy a property in the very near future. And this is obviously something that I'm thinking about and considering when looking at suburbs is to say, okay, what's the suburb? Like? What are the schools like in the suburbs? have close to the shops have close to the transport, basically, trying to get an idea of, you know, why would people want to live here? And will they want to live here in the future? And does it have those desirable things, but I'm thinking you're going to tell me something different given? You've done the data analysis, and there's an article on this?
Jeremy 1:26Yeah, good, good guess. Yeah, look, it's not a complete waste of time researching this sort of stuff. But there's, there's a very clear caveat to it. It's not automatic, that if you're buying in a suburb with good schools, shops, transport, all those amenities, that you're going to get above average capital growth. The key is whether that amenity is new or old. So the whole principle here is that if the suburb has all these great amenities, then it should be that properties in that suburb are very expensive, because this is a desirable place to live. But the price has already factored in the benefit of those amenities being there. Let's say for example, you get a new train station that comes into the suburb, what's going to happen is the suburb is now more desirable, people start paying more to have that, that benefit of being within say, walking distances, TradeStation. But after a few years, once it's factored into the price of properties in that suburb From then on, it's just it's business as usual, the capital growth carries on pretty much the same as any other suburb. So it's always a short term thing. And I did some research to look into some of these, these things like, like transport? Well, let's
Ryan 2:49have a look.
https://www.youtube.com/watch?v=f3PVAUKovuQ
Let's talk about bad debt and how to pay off debt. I'm so grateful to say I am FINALLY in a position where I am debt free and now able to save a house.
But rewinding to 2-3 years ago that was not the situation I was in. I quickly got into around $100,000 worth of debt. Here's how I managed to pay it off in such a short period of time.
0:00 - Introduction2:05 - #1: Write Down ALL My Debts3:26 - #2: Accept Where You Are3:48 - #3: Write Down All My Assets To Know My Net Position4:20 - #4: Calculate Minimum Required Payments5:37 - #5: Cut Spending DRASTICALLY7:23 - #6: Increase Your Income10:20 - #7: Keep Expenses Low Even As Income Increases11:19 - #8: Create a Buffer Fund14:04 - #9: Have Great People Around You
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Transcription
Ryan 0:00Let's talk about debt. Let's talk about bad debt. And let's talk about how to pay off debt. I'm so grateful to say that I am finally, finally, in a position that I am debt free and actually saving towards a deposit for a house. And I found out yesterday that I may actually even have most of my deposit ready and be able to go way faster than I thought. But if you rewind to about two, two and a half years ago, that was not the situation that I was in, I quickly got into a lot of debt, around $100,000 worth of debt once it was all tallied up. And let me tell you, that is a scary, scary figure. So in this episode, I want to talk about the things that I did to get out of such a significant amount of debt debt that was crippling debt that nearly sent me bankrupt. And so if you have bad debt and your life, whether it be as bad as me, or maybe just some credit card debt that you want to get rid of, what are some things that you can do to start to remove that debt, and actually get ahead in life? Hey, I'm Ryan from OnProperty, helping you on your journey to financial freedom. I'm currently at the beautiful garden falls on the Sunshine Coast. And it's taken me a lot of heartache, and a lot of hard work to get here. But I'm excited to share this story with you. I have been financially free through my businesses twice now been in extreme amount of debt and been able to pay that off. And I'm now saving towards my first property, which I should hopefully purchase this year. But if you're in this situation like I was in when you're in debt, how did I go about actually paying that off? and wiping that debt completely? Because I didn't do what everyone told me I should do. I actually tackled this my own way in a way that was true to myself. And I'm obviously really happy with the result having cleared that debt in just two years, but not just cleared it but also created financial freedom through my businesses, again in that two year period. So what did I do that was different? And what can you take away from this? Well, the very first thing that I did was actually sat down and wrote down all of my debts, I lived in denial for a little while thinking, Okay, now I just need to get by, I was going through a married separation. So there's a lot emotionally happening for me, I wasn't ready to write down my debts and deal with that. So I just kind of swept it under the rug, didn't think about it, and was just kind of going on in life. But one day, I remember sitting down in my dad's garage, which was my office at the time, line by line, I went through every debt that I owed from existing debt that I had payment plans on to money that I owed family members to future tax that I would have to pay, which I knew was debt that just wasn't quite jus just yet. I wrote it all down. And it was extremely overwhelming to realize that I was around $100,000 in debt, the exact figure I don't remember. But I do remember that feeling of looking at that and just being like, I am absolutely screwed. There is zero way that I can get out of this. What the hell,
https://www.youtube.com/watch?v=_lMnvaDCPQ0
We are often told to get the best capital growth we should buy the more premium and expensive suburbs and avoid the cheaper suburbs.People things suburbs are cheap for a reason and are going to stay cheap.
But is this actually true? Do cheaper suburbs actually underperform compared to more expensive suburbs.
Cheap Markets Are Not Under-Performers (Article Link)
Select Residential Property
DSR Data
0:00 - Introduction1:23 - Why are cheaper suburbs cheaper2:59 - Cheap vs Expensive Growth Australia Wide5:26 - Cheap vs Expensive in Regions7:00 - Cheap vs Expensive in Smaller Regions8:30 - Cheaper suburbs always perform better no matter which way you look at it9:05 - Cheapest vs Cheaper vs Dearer vs Dearest12:00 - Cheap vs Expensive in Major Capital Cities13:17 - Looking at Deciles15:00 - Looking at a 40 year period16:30 - Cheap vs Expensive Yield17:13 - Why buying cheaper properties could be better than more expensive properties
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Transcription
Ryan 0:00We're often told in order to get the best return on investment when buying property that we should buy the more expensive suburbs, the more premium suburbs with the idea being that people in the suburbs maybe have more money. And so I know property's going to grow faster. But what about cheap suburbs? People often think, okay, they're cheaper reason, and they're probably going to stay cheap. But is that actually true to cheap suburbs, underperformed compared to more expensive suburbs? Or is the opposite actually true? So today, I have with me, Jeremy Shepherd from select residential property to actually look through the data and to say, should we be investing in the more expensive suburbs? Or should we be investing in the cheapest other? So hey, Jeremy, thanks for coming on today.
Jeremy 0:43Thanks for having me.
Ryan 0:45Yeah, this one is really close to home at the moment, because I have saved my deposit, I'm looking to invest in the next few months, three to six months, and looking at different options in South Brisbane for me, but there's the cheapest suburbs, you know, kind of around $350,000 that I can get into with a lower deposit, or there's more expensive suburbs looking at 450 to 550, where obviously, I need a bigger deposit. And so I'm kind of arming an iron between the two. So it'll be interesting to go through this and to see, okay, what could be better?
Jeremy 1:19Yeah, well, first of all, they don't underperform. So they're cheap for a reason is true. They are cheaper because they don't have all the nice things that the expensive suburbs have. But that doesn't mean that they underperform just being expensive, doesn't mean that you've had better capital growth. And I think that there's this mistake, mistaken belief that if a suburb is expensive, how did it get there, maybe it had better capital growth, but it's always been more expensive. And there's this correlation between proximity to CBD and higher prices for suburbs close to the CBD in the map, major capitals more expensive than the suburbs get. But they've always been like that they've always been more expensive. And as property investors were not interested in whether our properties is is cheaper, expensive, but whether it has a capital growth, that's the that's what we're after.
Ryan 2:11And exactly right. Because let's say I'm going to invest a million dollars over the next couple of years into property or buy a million dollars worth of property, I could buy three for around, you know, $330,000 each, or buy two for 500,000, or one for a million. But what I hear at the end of the day is how much they go up in value. I don't care about the individual property price and its ROI. You know, I think one of the best videos we've done together is whether or not proximity to the CBD does correlate to higher capital growth.
https://www.youtube.com/watch?v=rk0Kl026uTU&ab_channel=OnProperty
We are often told that if we are going to invest in property we want to find a suburb or street with low government housing. But is this actually true and does the data support this idea?
Or can you invest in an area with high public housing and still get great growth in that area?
Public Housing in a Suburb is No Big Deal
Select Residential Property
0:00 - Introduction1:20 - Why this idea might be false5:08 - What does the data say?10:00 - Yield is not factored in11:25 - Something where there is a clearer trend13:30 - How to use data to build an investment strategy and predict where is likely to be good15:25 - Change in Gov housing vs capital growth
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Transcription
Ryan 0:00We're often told that if we're going to invest in property, we want to find a suburb, we want to find a street with low public housing or low government housing, the idea being that if people own the properties that they're going to invest in them and renovate them, and the suburbs going to go up at a faster rate than other suburbs where that public housing in them are a higher percentage of public housing. But isn't this actually true? When we look at the data? Is this the trend that we say, Oh, can you actually invest in an area with public housing and still get great performance out of your property? So today, I have with me, Jeremy Sheffield, from select residential property to talk about this, to actually dive into the data I'm gonna answer once and for all, as to whether or not this has a big effect on future capital growth or not. So hey, Jeremy, thanks for coming on today.
Jeremy 0:50Thanks very much, Ron. And thanks for giving me the opportunity to talk about this topic.
Ryan 0:56This is something that has been talked a lot about in the community, there's a lot of experts out there who say to avoid public housing, and honestly, I can understand the reasoning behind it, avoiding you know, issues that can come with that lower socio demographic area, as well as the idea behind, okay, people own the mall owner occupiers, they're going to spend money painting their house and renovating it. And that could live the suburb as a whole. So what does the data actually say?
Jeremy 1:25Well, the data suggests that there, it depends, is it there isn't really much in it. So it comes down to how long the social housing has been there. Let's say let's say a suburb is to host the new cities, sewerage treatment works, you can imagine that capital growth in that area is going to be diminished over over the following years. But eventually, that lack of capital growth, while the rest of the city suburbs are growing, eventually be factored into prices. And this is the thing over a long period of time, just about any sort of amenity or eyesore or advantage gets factored into the price of property. And from then on, it's it's business as usual. Queensland University of Technology did an interesting study about Brisbane Airport in in 1980, there was an expansion of Brisbane Airport, there was going to be a new flight path that was going to affect suburbs under that flight path. And for about four years, those suburbs had reduced capital growth. But then after that, it was it was business as usual. So it took four years for that negative amenity, to have an impact on prices, bring them back in balance. And from then on, it was his business as usual. So if your public housing has been there for decades, it is well and truly already factored into the price of property and is having no impact on capital growth.
Ryan 2:57So what you're saying here is let's say we have an area that has a very low percentage of public housing, the government decides, okay, we're going to move a lot of public housing into this area increase the percentage...
https://www.youtube.com/watch?v=z2TkAOaidtg&ab_channel=OnProperty
Experts often tell us that the more a suburb has grown in the past means that suburb is more likely to grow in the future. But is that actually true and does the property data back up this idea:
High Property Growth History is a Red Flag
Select Residential Property
0:00 - Introduction1:38 - Why the opposite might actually be true4:45 - What does the data tell us?9:50 - Last 10 years vs next 10 years12:15 - Applying this to cities and larger markets15:00 - Performance of significant urban areas over the last 30 years
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Transcription
Ryan 0:00Experts often tell us that the more a suburb has grown in the path or a suburb with good growth history means that that's above is also likely to grow in the future. So does the past predict the future in terms of Southern growth? But is that is that actually true? Are we actually making these decisions based on data? Or someone just told us this and you know, general consensus has just kind of agreed to it and gone along with it. So today, I have with me, Jeremy Shepherd from select residential property, to look at the data behind this and say, okay, does pass growth actually predict future growth? Or could the opposite be true? And I absolutely love Jeremy, that you just take a super data approach to this. And you're happy to, I guess, come over the top with some, I guess, counterintuitive views on what may be happening here and just provide us with these knowledge bombs of insight. So super excited for this one.
Jeremy 0:56Yeah. Well, thanks very much for having me. on your show, Ryan. And this is this is a topic that I I get a lot of heated arguments with, with experts about Yeah, so I'm always falling back on what the data says Show me.
Ryan 1:10What is the premise here that the experts are saying, why why do they think that? If an area has grown Well, in the past, it's going to grow? Well, in the future? What is their reasoning? Do you think?
Jeremy 1:23Right question. I actually, it is it is peculiar. Why is it just because it did in the past? Why does that mean it will in the future? Because my initial reaction is, well, if it's if it's grown too much in the past, if it's outperformed, and put a massive gap between itself and you know, its neighboring suburbs? Don't the neighboring suburbs look more attractive, because they're now relatively affordable by comparison. And that's the whole concept of this ripple effect where, you know, you have the ideal suburb, everyone's buying there, they love it, prices go up too high. And then people look for the next best. So they think, well, it's not ideal, but it's it's close enough. And so that reduces demand for the ideal suburb, because then it's unaffordable, and increases demand for the next best thing. And that just keeps happening. And it all ripples outwards from, you know, the most affluent, exclusive suburbs.
Ryan 2:26Right, our saying today, you would you would expect from the data, the opposite to be true that if a suburb has grown significantly in the past, then it's less likely to see growth in the near to medium term future.
Jeremy 2:39That's right. But as as things just balance out,
Ryan 2:41or Yeah, may not be triggered growth, but my won't necessarily see more growth in comparison to other suburbs close by.
Jeremy 2:49Yeah, that's right. And I do use this. apples and oranges analogy, where picture yourself in a fruit shop 100 years ago, and you can buy an apple for one cent, or orange for two cents. Now, if oranges grew in value at 8% per annum, but apples only grew at 4% per annum, then 100 years later, you'd be spending 50 cents on an apple and $44 for a single orange. It's It's ridiculous. It's still an apple, it's still an orange. Why would you walk into a fruit shop buy $44, one orange,
https://www.youtube.com/watch?v=x3VbVbDwwuM&ab_channel=OnProperty
The dream for a lot of people is to make a living doing what you love. Today I'm joined by N'Jaane Taylor and we talk about what we have done to be able to make a living doing things we are passionate about and absolutely love.
N'Jaane's YouTube
0:00 - Introduction1:30 - #1: Learn to manage your money well first2:28 - #2: Spend time working out what you want to do4:10 - #3: Know when to let go5:05 - #4: Try a lot of different things8:45 - #5: Learn to love the work you do9:45 - #6: Work on yourself11:06 - #7: Be willing to say no to the wrong money12:30 - #8: Learn to say no14:25 - #9: Stop caring what people think
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Transcription
N'Jaane 0:00Before you open yourself up, and give away your energy to things that aren't in alignment, the less energy that you have for the things that are in alignment, then when an opportunity comes, that actually is exactly what you need you like coffee.
Ryan 0:13Remember that this is your life. This is the one life that you get to live. This is your journey, and you need to be true to yourself and what you want. So I'm very much an advocate for not living the life that someone else wants you to live. The dream for a lot of people is to be able to make a living doing what you love. But actually thinking about that and dreaming about that versus making it happen and enjoying your work and enjoying what you do. He kid the steps between that can be very difficult. And a lot of people find themselves in dead end jobs or things that they don't like that stripping their energy. So in today's episode, I'm joined by new john Taylor, who's one of my best friends who at a very young age has been very successful doing what she absolutely loves. So going from promo work, which he wasn't super stoked on to becoming a DJ and quickly becoming a very successful DJ to now running her own meditate and levitate events. And so today we're going to just kind of discuss, okay, what kind of steps have we taken to create a life where we are doing what we love, whether we're getting paid huge bucks for it or not? Doesn't really matter. But it's that we love coming to work. And look, I'm in a similar situation where I love the work that I do the videos that I create the websites I run, we're currently you know, in Port Macquarie in this amazing spot. So it's a Monday afternoon. So yeah, so I guess that gives us a bit of insight into the situation. And yeah, how can we actually go from a dead end job to doing what we love? Yeah, just just how do you do that?
N'Jaane 1:56Well, okay, if
you want to, if you've watched the last video that we did on money, that obviously definitely helps. If you haven't, just go check that out. But basically, having a good system where you then have a buffer and you have more freedom obviously helps.
Ryan 2:13Yeah, so managing your money well, so that you've got a buffer fund. So you've got the freedom to take, and to pursue things or take a pay cut in your life to pursue something that you want can be really important. Because if you've got car loans and expensive rent, or mortgages and just all these overheads in your life, then it can be like, Okay, I need to work every month to pay for these things that are like really not making me happy. They're just forcing me to work. So I can pay for them as late. So stripping that out, getting good money management, so you build up the opposite, which is a buffer fun to say, Okay, I can take six months off, if I want. What do I want to do? Yeah, yeah. So starting, there is a good start. Well,
N'Jaane 2:56actually, even that as well, I think having the tools to actually figure out what you want to do. So like, I actually had a girl messaged me the other day, and she was like, I don't know what to do with my life, like, how do you figure out what to do with the life?
https://www.youtube.com/watch?v=F9rz9q5B74c&ab_channel=OnProperty
We are often told if we want the best capital growth we need to buy as close to the CBD as possible. But is this actually true and is there any data to back up this advice?
Why There's No Need To Buy Near The CBD
Select Residential Property
0:00 - Introduction1:13 - Issues with prior reports6:35 - What trend you'd want to see if this was true8:10 - Calculating the data9:25 - The results11:45 - A problem that makes this difficult to assess13:30 - Change in growth/m216:35 - Yield vs distance to CBD19:20 - Don't just look at one data point20:25 - Volatility vs proximity to CBD22:30 - Why are properties near the CBD more expensive?
Recommended Videos:
Why Population Growth Does NOT Predict Capital Growth (Data Dive)
Transcription
Ryan 0:00We're often told that if we want the best capital growth, then we need to buy as close to the CBD as possible and that the further out you get from the CBD, the less capital growth you're going to get in that suburb and in that property. But is this actually true? Today? I have with me, Jeremy Shepard from selected residential property to talk about this. Do we actually need to buy in the CBD or as close to the CBD as possible? And is it true that the further out we get, the worse our capital growth is going to be? When we look at the data? Does it actually tell us a different story? So hey, Jeremy, thanks for coming on today.
Jeremy 0:37Thanks for having me. on your show. Ron.
Ryan 0:40No worries. So yeah, this is one that I'm really curious about. I know that you take different angles, other people, you look at the data, I guess more,
I don't know, less emotionally, you don't draw conclusions as quickly as other people do? And you tend to say no, what does the data actually tell us? And sometimes you throw your hands up and say, Look, it doesn't really tell us much. So I'm excited to hear what conclusions you come to and what data you've looked at. So don't talk us through a bit about what research you've done, what conclusions it's likely to? Yeah, well,
Jeremy 1:11I guess it was all triggered by having a look at some prior reports, I've seen quite a few. And it all seemed very convincing. And I tried to replicate the same sort of results and just to a little more well rounded job of it. So for example, people refer to inner ring, middle ring, outer ring, why have we got three rings? A lot of the reports I've seen have just focused on a single city. And I just thought, we need something a little bit more broad. What I wanted to know was, what is the improvement in capital growth per kilometer closer to the CBD? Is it possible to come up with a metric like that. And really, what I found was, there's not really much in it. And it's debatable whether there's anything in it. In fact, if I just scroll down, I think there was a Okay, so I go through some other reports and just point out some of the shortcomings, or some of these reports were quite a few years ago. So we can't really, you know, point a finger at what was done then it was was pretty good for its time. But there is a chart or where I cut to the chase. So I'll just if you'll bear with me, and I
Ryan 2:24will link to this article down below if people want to go through this go through it in way more detail than we're going to cover in this video. And you can see all the graphs and things here.
Jeremy 2:34This is a great one from two big names in real estate. Well, two big names in data in general RBA and real estate Institute of Australia. And, and this chart is a little bit hard to absorb. But what they've done is they've they've tried to create a ratio between these two timeframes, 2014 and 2008 2008. two and six. And the idea of this chart is that prices are getting the difference between inner and outer rings is getting larger and larger over time. So all I did was I tried to replicate this exact same chart,
https://www.youtube.com/watch?v=eslXgi36xgw&ab_channel=OnProperty
Managing money as a young person can be extremely difficult and it's not something they teach you in school. However, it is possible but with some simple steps and the right mindsets you can get really good at managing money when you're young.
N'Jaane's YouTube
0:00 - Introduction1:48 - #1: Having Multiple Bank Accounts8:16 - #2: Look at money as a form of energy9:48 - #3: Look at what you spend your money10:58 - #4: How is your spending making you feel? Is it bringing you joy?13:55 - #5: Have a holistic view of money17:45 - #6: Have good money habits when earning a little or a lot19:28 - #7: Never spend money you don't have21:00 - #8: Give to something that is important to you
Recommended Videos:
Barefoot Investor Bank Accounts Explained
Transcription
N'Jaane 0:00Looking at money as a physical form of energy and understanding what it actually is, money is just energy. And as long as you've got energy in your body, you've got a way to make money and switching from a real scarcity mindset to an abundance mindset. It's like, actually, I can make a lot of this. And it's not a bad thing, if I do.
Ryan 0:23managing money as a young person can be extremely difficult. It's not something that they teach you in school, I know I wasn't very good at managing money when I was young, however, it is possible. And with some simple steps and some simple processes in place, you can get really good at managing your money when you're young, to be able to save for a property or to invest or to set up your life. Today, I have with me, john Taylor, who is one of my best friends in the whole world, but also an extremely successful young person I've seen you go from, you know, basically having no money at all.
N'Jaane 0:58And they're stressed out,
Ryan 1:00stressed out on money, and then even earning just small amounts to be able to build up savings, build up a buffer and fun, build up your life to the point now, a couple of years later, when you're a successful DJ, you're running, meditate and levitate, you've got a lot of things going on in your life and more money coming in than you used to. And you still better at managing money than me. I'm excited to share today, some of the things that you do in your life that people can take away and maybe apply to their lives, whether you're young, this will help you. But even if you're older, you can take a lot from this as well. So thanks for finally coming on. Well, we got there. So what are some of the things that you implemented in your life to get you from that point where you were really stressed out to feeling like you have control over your money?
N'Jaane 1:46Yeah, so I was really fortunate. I have a lot of mentors and friends that in the business game and entrepreneurs and so I went to a master your money seminar, I guess when I was really young. And there's just like, it's a really simple tactic that I started implementing. And I found that it didn't actually matter how much money I made. It just gave me that head start in like, very slowly building stability for myself. So the biggest thing that I took away from that was the full bank accounts like how to actually physically manage your money. So
Ryan 2:28Well, that's it, most people just have one bank account. So mine comes in and money goes out. And then most people aren't necessarily tracking that. They just kind of do the blind like half and just hope it goes through. Yeah, especially if you know, as a younger person, you've gone out on the weekend. You're not sure how much you spend?
N'Jaane 2:45Oh, yeah, I really feel for I feel for people on that one. That's why being a DJ is great. Just do that. You'll save hundreds of dollars for a drink.
Yeah.
Ryan 2:58So what are these four bank accounts? And how do you allocate money across them?
N'Jaane 3:02Yep. So I it's easy. Look, I'm a bit OCD. So. Um,
As a homeowner there can be a seemingly never-ending stream of plumbing problems. Blocked toilets, leaking taps or faulty hot water systems. They’re all a part of life, whether it’s in your own home or an investment property.
But when the time comes for necessary, often urgent repairs, you want the best plumber to get the job done. And that decision making process has its own challenges. They key is to never panic or feel rushed. It’s always better to take your time making the right choice instead of chasing up loose ends later on.
Backed by a calm approach, here are 8 things you should look for when choosing a good plumber.
- Positive and Reliable Online Reviews
Reviews of Metropolitan Plumbing Sydney
The first thing you want to do is look at online reviews. Never leave it until you’re unhappy with a job and want to complain. It’s one thing to stick to a name you remember from television advertising or letterbox drops, but it’s another to properly check out their reputation and reviews.
Leading resources include Product Review, an Australian consumer-based review site, and Google Review. Both are independent sources where customers can leave detailed feedback. You can then check out the pros and cons before making any decision. Look for recurring themes surrounding pricing, job satisfaction, customer service and availability. Individual reviews may focus on just one point, like pricing, so it’s always good to capture the overall picture.
An inside tip is to avoid the lure of companies which seem too good to be true. An overall 5-star rating looks appealing, but is there actually a large quantity of reviews? A good balance of positive and negative reviews reveals legitimacy and engagement. There’s a better chance at truly seeing a company’s overall performance, rather than a tiny snapshot.
Remember, it’s not possible to please everyone. There will be negative reviews and although 5 stars seems tantalising, the 4.5 ratings are the best benchmark. You can build from there and use the feedback as the perfect starting point for choosing a good plumber.
Check out Metropolitan Plumbing's reviews on Product Review
- A Good Social Media/Online Presence
An engaging, communicative social media and online presence is just as informative as customer reviews. And although it may not be the first thing you think of when looking for a plumber, it’s an invaluable resource. Regular communication, informative posts and a professional website indicates a company which cares about customers. It’s more than just image.
Evidence of a plumber answering questions and comments is always beneficial. As the customer you can rest assured someone is willing to help if anything goes wrong. On the other hand, when it seems like it’s difficult to engage with a plumber online, often the poor communication stretches to customer service.
Irregular posts, no customer interaction and obvious negative comments are a major detraction. Just stay away from the plumbers and companies which give off a sour feeling on social media.
Instead, look for those who post great images and have a positive interaction with customers. An active blog on their website is a good sign so is an active YouTube channel. This can really give you a better feel for the company or plumber you're going to be working with.
Plumbers that are proud to show off past work are helping you make a big decision. Their eye-catching renovations and professional installations are all the evidence you need. As they say, a picture is worth 1000 words.
- License Numbers and Insurance
Always use a fully licensed plumber, electrician, technician or tradesperson. There are no ifs or buts about it. Even if the prices are low and you’re desperate, the risk does not balance out the reward.
While you’re looking at a website or Facebook page, look for licence numbers. Often they’ll be located in the About Us section or a page footer.
https://www.youtube.com/watch?v=Z1k9zSVrMMg&ab_channel=OnProperty
People often say you should look at population growth to try and predict capital growth. The idea is that if an area has population growth it is a desirable area and that will lead to capital growth.
However, there is a fundamental flaw in this assumption and today I sit down with Jeremy Sheppard from Select Residential Property to discuss why population growth DOES NOT predict capital growth.
Select Residential Property Article: Avoid High Population Growth Suburbs
0:00 - Introduction0:45 - Macro vs micro level2:50 - Population growth is a lagging indicator of supply3:40 - Really you want a suburb where there is little to no population growth but the suburb is still desirable4:52 - Taking the macro and applying it to the suburb level6:17 - What to look at instead of population growth6:43 - Population decline is a negative indicator8:25 - Other issues with looking at population growth9:23 - When population growth is a negative indicator
Transcription
Ryan 0:00People often say that you should look at population growth to try and predict capital growth and that if an area has high population growth, then that means that it's going to grow in the future in terms of the price of properties and capital growth. Today, I have with me, Jeremy Shepherd from selected residential property to actually talk about this, and to analyze and say, okay, is this actually true? Or is this something that just kind of sounds good, but doesn't have any data to back it? So I'm really excited to jump into the data trying to understand, okay, what does predicts capital growth? And it goes through population growth in particular. So, hey, Jeremy, thanks for coming on today.
Jeremy 0:38Thanks for having me, Ron. Yeah, so
Ryan 0:40talking about this, I think we discussed this years ago when we record it maybe four or five years ago. And I really liked your approach to this because most people say, Okay, if an area is growing in population, that means there's more demand for properties in the area. And as we know, demand versus supply, there's more demand prices are likely to go up. So people say population growth means there's more demand, which means prices are likely to go up.
Jeremy 1:07Yeah, and I think at that level, that makes perfect sense. And, and when I look at it from a macro perspective, like Australia and immigration over over the previous years, it does seem to work. The problem is that, from a practical perspective, investor has to find a suburb, they have to find an individual property, and saying that a particular city is going to have excellent population growth, which is going to pump up demand. That's where it sort of loses its practicality because you've got to find an individual suburb. So if you go down to the suburb level, and look at how the population has been changing the suburbs, and a lot of people do that, they'll get ABS data about population growth and suburb level. This is where it all falls apart at that micro level, like at a suburb or local government area, because the only major way in which you can get population to grow at a suburb level, is if there are more dwellings so that people don't just, you know, move into the streets and, you know, live in a cardboard box under the freeway bridge, they occupy an already vacant dwelling. So if a whole bunch of dwellings are built, then a whole bunch of people can occupy those dwellings, and then you get that population growth measured. But of course, you needed massive supply beforehand. And so quite often, population growth, especially population growth forecasts, is really a forecast of supply. You know, the local council and developers get together, I think I agree, we can open up what they call a growth cartel. But it's really what investors should call a supply curve, because it's just extra dwellings. So wherever you get extra dwellings,
https://www.youtube.com/watch?v=udeTRKgq21c&ab_channel=OnProperty
It's been a year since I've been able to come up to the Sunshine Coast and hang out with Ben and chat about life and business and property. In this video we discuss some of the key things we've been vibing on at the moment.
0:00 - Introduction1:21 - Being hard on yourself3:48 - Being present on the journey to financial freedom7:59 - Speeding up success with a plan11:45 - Gaining your best life now13:50 - What do you want?14:30 - One of the most important things Ben ever heard
Recommended Videos:
We're Vibing On Life Right Now (May 2018)
Property and Life Update 2020: Ryan McLean and Ben Everingham (Mar 2020)
Transcription
Ryan 0:00It's been a solid year since I've been able to come up to the Sunshine Coast with all the border restrictions and everything to be able to come up here hang out as mates as business partners and help each other now business as I
refresh it. So
good talk about property, talk about live all of this stuff, I just realized how valuable this relationship is. And we had a huge walk on the beach last night, like everything we do. So romantic.
Ben 0:25It was a real good luck, it was awesome.
Ryan 0:27But we are vibing on life. And we've done a few of these in the past, which I'll try and find and link up down below. But it's just a more chat to kind of get to know us get to know where we're at mentally, because this is one of the most powerful relationships in my life. I know you've said the same to me. And just so much good stuff comes out of our conversations that we don't really have with other people. And I know a lot of people out there listening don't necessarily have people that are on the same wavelength to them. So we just kind of wanted to share some of the stuff that's been going on with us some of the cool things we've been learning about being present, being mindful, enjoying life now, as things are, you know, in a good spot for both of us, like, let's be real, we had a couple of years there where things were real rough on both of us financially in our lives, like,
Ben 1:17yeah, and like what I'm so grateful for man is like, no matter where I was at, I've been able to like, figure it back out. Like, if I could figure it out from where I was with my anxiety like three, four years ago. Like I feel like humanity's got like an epic outlook. You know what I mean?
Ryan 1:34That's an invite I can figure it out from where I was in all the debt. I was in everything that I was going through, like one thing you said to me last night when we were walking on the beach is
Ben 1:46my sister's little, the tortoise. Hello, buddy,
Ryan 1:49showing us his car, his toy car. But yeah, one of the things that you said to me is like, you know, if someone went through just one of the things you went through, or this or that, or that, or that, you know, they'd be struggling and like you're being hard on yourself out to go through all of these different things. And you're judging yourself saying, You're not where you want to be. I need to give
Ben 2:09myself some grace. They're fully man. Like, I feel like one of the things that I've learned in the last few years is just my dad's been saying to, to me for 10 years, he's like, just be kind to yourself, man. Like, you know what I mean? And I'm like, I couldn't hear it. I'm like, No, I'm like, I'm going on this direction. I want to be here. I'm like, prepared to hustle through it and go through the pain. And I'm like, I would never speak to someone, most of the time who I speak to myself, like, why don't I just decide to be like, my best mate. And like, kind of myself and accept that, like, I've got a bit more of an active mind than most people in that sped up journey. But it's also like, you know, it's just, it's just the, you know, what I don't even know how to say what
Ryan 2:50I was thinking, you and I have been so hard on ourselves,
https://www.youtube.com/watch?v=-EivK-R6yxg&ab_channel=OnProperty
The market in Brisbane and right across Australia is heating up so much right now. Negotiating and buying property is a hot market requires very different strategies to a cold market.
In this video we share some amazing tips for how to negotiate and secure your next property when the market is extremely hot and properties are selling extremely fast.
Book a Free Strategy Session
0:00 - Introduction2:06 - What is a hot market?5:10 - Building relationships with agents10:40 - What to do once the market comes online12:40 - The agent is your friend in a hot market13:40 - Build trust and value with the agent16:28 - Review the contract and be prepared when making your offer17:50 - How to present offers and negotiate21:13 - Helping the agent move the deal forward24:30 - Creating time pressure26:28 - If the property goes to the open home33:20 - Avoiding the bidding war and not getting emotional34:40 - Looking at the upside potential by looking at history
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Transcription
Ryan M 0:00The market in Brisbane and right across Australia is heating up right now and buying in a hot market is so different to buying in a cold market. I just sat down with Ben Everingham, buyer's agent from Pumped on Property. And we talked through some key things about how to buy and secure property in a hot market. We're going to be sharing this video, it's so good. We're sharing across both our channels. So I'll link up to Ben's channel down below where he does, he's of great content. And so go and check him out. Otherwise, let's get straight into the video. The market up here in Brisbane and on the Sunshine Coast is heating up so much at the moment. It's not just heating up man, it is so hot right now. And the way you approach purchasing property in a hot market versus a more cold chilled up market, which we've seen over the last few years in Brisbane, as well as during that peak Corona lockdown period is very different the way you need to negotiate the way you need to talk to agents, the way you need to try and lock down these contracts and get these properties is very different. And if you don't do it properly, then you're going to miss out and we don't want you guys to miss out, we want you to get the best investment properties at the right price. So today, we're going to be talking about how to negotiate and purchase investment properties in a hot market. I'm Ryan from OnProperty helping you achieve financial freedom. I got with me Ben Everingham, buyer's agent from Pumped on Property. And he has been doing this all man you know, all the last couple of months is just hot market negotiation. So really excited for this one today. You know, I'm loving it. It's what February at the time of recording this this year to date. I think we bought 20 I bought 22 properties for our clients personally and it is really hot out there right now. And like I just said to you off camera that even with everything that I know, which is I've been doing this as a business for five and a half years but I've been selling in negotiating for a lot longer than that I've read the books, I've listened to the audio and I'm only getting four out of every six properties still, you know it is hard. It's taking everything to like get the right outcome at the moment. Yeah. overpaying. So let's before we get into it, let's talk a little bit about Okay, what is a hot market? Why is Brisbane and the Sunshine Coast? so hot right now? so hot right now. So hot right now that fridge is so hot right now. So long right now? Yeah, I'm actually growing the hair out besides like this awkward length. But so a hot market to me is simple. From a data perspective. It is either an auction clearance rate of over 75% in Sydney,
https://www.youtube.com/watch?v=DXoCSzNB_0Y
The market is forever changing and things are heating up right now in many markets across Australia. In this episode we want to look at whether or not 2021 is a good time to buy and compare it to 2020 as well as previous years.
Book a Free Property Strategy Session - https://onproperty.com.au/strategy
Advanced Suburb Research - https://onproperty.com.au/suburb/
0:00 - Introduction0:50 - Sentiment is super bullish2:04 - Things don't always play out how you think they logically should5:05 - Where are we in 20219:05 - Pressure on housing stock and vacancy rates10:20 - Australia is not one market13:10 - Things to look at moving forward from here14:30 - Erring on the side of caution in this market17:12 - Know your strategy before investing
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Transcription
Ryan 0:00The market is forever changing. And we always like to do updates about whether or not now is a good time to buy and looking towards the beginning of 2021. Looking into 2021, we've come through an interesting year in 2020, we wanted to ask is 2021 a good time to buy and what sort of things are happening in the market at the moment, and then maybe some comparisons last year, or even comparison to a couple of years ago, and see where we're at, hey, I'm Ryan from OnProperty, helping you achieve financial freedom. I'm joined by Ben Everingham from Pumped on Property to yet give you guys an update. And to talk about this just to see where the sentiments are, how things are progressing and how they might go throughout the year.
Ben 0:44You know, I geek out on anything that's like analytical data oriented, it's all about me and what I'm noticing and feeling I'm liking and I've never I've never seen it this bullish at the moment like I've never seen it this positive across the board.
Ryan 0:58Yeah. And I think that's something that is just so drastically different from what we've been dealing with for the last almost three years now. You know, Sydney went through its decline, Sydney and Melbourne in 2017 2018. And so, that kind of affected things and then obviously Coronavirus last year, it's just been there's been great opportunities out there. And some markets have been moving but sentiment as a whole hasn't been super bullish and super positive. And now it's just dude, every man and his dog is talking about a property some people I talked to at school, they don't even know I'm a property vlogger YouTuber, they come up they're talking to me about the Brisbane and I'm in Sydney like event talking about Brisbane or the Sunshine Coast or
Ben 1:40it's pretty wild like Westpac does an epic little report called the Australian sentiment report and it is now in as of January or February this year, the highest it's been in the last seven years and December was the highest sentiments been in 10 years since the GFC. Now that is a huge precursor for like what's coming in a positive way
Ryan 2:02and I think something I've had to let go of so over the last few years and dealing with renew the recession was coming or something was gonna happen and then trying to work out logically Okay, how are things going to play out and then being at this point now looking back and realizing that things don't always play out how you think they logically should? There's so many factors at play like last year Coronavirus, borders closed down international borders closed down job Kiva people losing their jobs it's like okay, the market should tank from a logical perspective people are earning less money you know what people are losing their jobs This is crazy. The market should tank but no the market dinner and and what people ended up earning more money saving more money because of job keeper and all of that sort of stuff. And then the market has actually grown as a result.
https://www.youtube.com/watch?v=Au42IAeoCuM
If you're looking at developing medium density property this one is for you. Recently there has been new rules introduced that make getting approval for medium density dwellings easier. Instead of 6-12 months for approval this new process could get you approval in as little as 2 weeks.
This is exciting stuff for developers and today I have Luke Durack from http://www.durackarchitects.com/ to discuss this new approval process and how you can take advantage of it.
0:00 - Introduction0:43 - What is this new process?2:23 - Difference between this and DA approval4:00 - What developments does this code apply to?6:08 - Does this apply to granny flats?6:40 - Will this code become more commonly used8:37 - The pros and cons of taking this avenue11:15 - How can people find out more about this?12:45 - How to get in contact with Luke13:15 - Will all architects know about this?
Recommended Videos:
The Complete Guide To The Development Approval Process: Part 1/2 - https://www.youtube.com/watch?v=AZaxtl-1daQ
A Better Way To Get Development Approval - Compliant Development Code - https://www.youtube.com/watch?v=BUtkZFlh01s
Transcription
Ryan 0:00If you're looking at developing property, then the development approval process can be an extremely difficult and arduous process that can take an extremely long period of time with setbacks and knock backs and going back to Council and this whole process, but there's actually been introduced a new are easier and faster way in order to get development approval done for medium density. So today I have with me, Luke, jack, from jack architects. Hi, Luke, how's it going? Good, I run good. And today, we're going to talk about this new process and how you could potentially use it if you're doing some property development yourself. So Luke, do you want to kind of give us the rundown? What is this new process? What's it called? Why is it better faster than, you know, going through a DA and going through counsel?
Luke 0:52Okay, I'll I'll try and keep it simple because it's, it is simple in nature, but it's quite, it can get quite complicated quite quickly. Basically, as we, when we last spoke, we spoke about compliant development as it relates to houses. So an approval pathway that bypasses council essentially, this new part of the code, which is still compliant development, relates to medium density housing, and it's called the low rise housing diversity code. And it's specific to development types, such as dual occupancies terraces, and what they call Manor houses. And essentially, like, like it is for houses. It's a fast track way of getting through accounts. And so you don't, you're not getting held up by councils having their own particular biases or objections. You go straight through a certifier, you still needed, you'd still need an architect to draw up all your drawings and get all their reports done. But you'd have to worry about neighbor objections, because they can't have any size. Basically, as long as you tick all the boxes, you can have, in theory, your development approved in a couple of weeks, as opposed to if you go through Council, six months a year, go the landmark or whatever. So it's, it's a, it's a great, it's a great if you can if you can get your development to work within this pathway. It's a bit of a no brainer, in many ways.
Ryan 2:22Yeah. So we actually talked about the development approval process and how all of that works a couple of years ago. So I'll link up to that down below. But basically, going through that DEA process, Yeah, you do. There's obviously guidelines you have to stick within, then there's a period where neighbors can put up rejection objections, and you know, if it doesn't get approved, you might have to make changes, etc. Then the difference with this, from my understanding is that it's more black and white. Whereas with DEA approval, sometimes you'll step outside of what you're m...
https://www.youtube.com/watch?v=ZcwUCx4pjBo
One of the most important people to have on your team as a property investor is a mortgage broker. But how can you actually find a good mortgage broker?
Contact Michael at Mortgage Broker Sydney
0:54 - Start with a recommendations1:15 - Look at customer reviews, level of experience and time in industry1:50 - Access to as many lenders as you can5:15 - You need to be able to get on with your broker7:45 - How does someone engage a mortgage broker10:20 - Getting a feel for your broker11:00 - Finding someone who has longevity in the industry12:55 - Summary of how to find a good mortgage broker15:04 - A good broker will give you a path
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Transcription
Ryan 0:00One of the most important people to have on your team as a property investor is a good mortgage broker, someone who can access multiple different lenders show you how much money you can borrow, advise you on how to get better rates, or how to increase your borrowing capacity. But how do you actually find that good mortgage broker and that good person for your team? So today I have with me Michael Brown, from mortgage broker, Sydney Comdata. You to talk through this about how can you find a good mortgage broker? How can you approach a mortgage broker and how the whole process works? So hey, Michael, thanks for coming on today.
Michael 0:34Good Ryan. Good to be here.
Ryan 0:36So finding a mortgage broker, if someone's you know, not in the industry, they don't have a recommendation from someone they just kind of googling mortgage broker? How can they go about kind of starting to identify who might be a good fit for them? And who might not be? Alright,
Michael 0:53well, the first thing, of course, is if you've got friends or family colleagues who have at least had someone and dealt with a mortgage broker and have had a positive experience, we all know, that's probably going to be the best way. But if you're starting green, if I could put it that way, and you're just going to put it out there, then I guess you're looking for things like customer reviews, you're looking for the level of their experience, perhaps their time within the industry. Now, none of those things on its own is a guarantee, but at least it'll start pointing you in the in the right direction. Because I'm a mortgage broker needs to have I Well, I think, and I'm probably attached by us having even been in the industry for a while, but you should have some pretty good industry experience, you want to have as many of the lenders, that the sorry, you want to have access to as many lenders as you can. And you want to have
Ryan 1:57does that vary significantly from mortgage broker mortgage broker, which lenders they have access to, or the most mortgage brokers have access to everyone?
Michael 2:05No, most mortgage brokers don't have access to everybody. Because different people are employed under different I suppose in different within within different silos. So you could have, you know, completely independent mortgage brokers who will have access to the broad range of the industry, but some of the branded brokers would have less or fewer accreditation across all the major banks. So you might have someone who is within a franchise, for example, would have a significantly limited portfolio,
Ryan 2:47which is interesting, because you would kind of think, as a lay person who's not in the industry, you would kind of think the opposite, that if someone's franchise, and it's a big company, then they're actually going to have access to more lenders than an individual. But I don't know if it has something to do with, you know, buying power and these groups negotiating with particular lenders and featuring them?
Michael 3:08Well, some of those things are true. Look, I'm not necessarily saying that just because you're...
https://www.youtube.com/watch?v=tByp8zBwmGE
When you have an investment property it's really important to have a good team behind you. One of the most important people in that team is your rental manager.
But how do you find a good rental manager and how do you even know what to look for? Today we talk to rental manager Lauren Robinson about how to pick the right rental manager for you.
Rental Results Brisbane Property Managers
0:00 - Introduction1:35 - The difference between a good and bad rental manager4:39 - #1: How Do You Market Your Properties?7:22 - #2: How Do You Vet Tenants7:40 - #3: How Do You Manage Tenants and Do You Have an Online Portal8:10 - #4: How To Tenants Report Maintenance8:16 - #5: Who Will My Rental Manager Be?9:42 - #6: How Frequently Will You Inspect My Property?9:49 - #7: What Training Do You Offer Your Team?10:00 - #8: How Do You Handle Rental Arrears?11:58 - #9: Do You Offer a Service Guarantee?12:08 - #10: What Backup Staff Do You Have If Someone Is On Holidays or Sick?12:25 - #11: How Frequently Will You Communicate With Me?13:14 - How To Compare Property Manager Fees15:30 - How To Change Rental Mangers
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Transcription
Ryan 0:00When you've got an investment property, it's really important to have a good team behind you. And one of the most important people in that team is going to be your rental manager. This is the person that's going to make sure your property gets rented deal with any issues that come up, make sure you get paid on time, all of that good stuff. But how do you go about choosing a good property manager? And how can you identify a good one from a bad one? So today, I have with me, Lauren Robinson from rental results.com.au, who's a rental manager herself been in the industry for nearly 20 years. And she's going to talk us through some questions you can ask, and things you can do to understand, okay, is this going to be a good property manager or not? So hey, Lauren, thanks for coming on today.
Lauren 0:42Yeah, thank you, Ryan. Thanks for having me.
Ryan 0:45No worries. So this is obviously a really important topic for people who have just purchased a property or maybe they've got a rental manager that they're not completely happy with. And they're thinking about shifting, how does one find a good rental manager? How can you look at the different websites and say, okay, who do I pick? How do I even know?
Lauren 1:04I know. And that's that is a hard question. I think really, you know, often people ask their friends or their family, or maybe a sales agent they've dealt with, or often people will just choose the agent that they've bought through purely because they don't know where else to look. And I think it's really important to do your research online, have a look at how they're marketing properties, and also interview a couple of different agents. So I have got a list of questions that I'd suggest you ask a prospective property manager. Yeah, just to narrow that down.
Ryan 1:34Before we jump into those questions, just so people can understand the difference between a good agent or a good rental manager and a poor rental manager? Do you want to tell us the story, again, that we did in a previous video about that property you got that was vacant for a number of weeks before the people shifted over to you? Yeah, so
Lauren 1:53we, so there was a property in a complex that we actually managed quite a few in that building the property have been on the market for six weeks with no interest, no applications, we took that property off that agent. And within two days we'd been we were able to rent that property for $20, more awake. And the reason being is purely because of how we changed all the marketing. So we made sure it was marketed properly online, we have an online booking system. So tenants can book in times, you know, obviously,
https://www.youtube.com/watch?v=4N8YjMF0SB4
If you're looking to invest in property, you're going to likely need to get a mortgage. And if you're going to need to get a mortgage, you're going to need to present your finances to the bank in a way that they're happy to lend you money. And today, I have with me Michael Brown from mortgagebrokersydney.com.au. And he was telling me that he spends so much of his time coaching people and things that they need to do to get their finances in order so that they can get a loan, I thought that would be a great thing to talk about to help everyone out there who's looking at getting a mortgage.
Contact Michael - https://mortgagebrokersydney.com.au
0:00 - Introduction1:07 - Have your documentation3:10 - Explanations for expenses4:53 - Regular savings pattern + frugal living7:19 - Reducing your debt + making debt repayments8:35 - Reducing credit card limit12:23 - Get a copy of your credit report15:45 - What point should you engage a mortgage broker19:15 - Benefits of using a mortgage broker
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Transcription
Ryan 0:00If you're looking to invest in property, you're going to likely need to get a mortgage. And if you're going to need to get a mortgage, you're going to need to present your finances to the bank in a way that they're happy to lend you money. And today, I have with me Michael Brown from mortgage broker sydney.com.au. And he was telling me that he spends so much of his time coaching people and things that they need to do to get their finances in order so that they can get a loan, I thought that would be a great thing to talk about to help everyone out there who's looking at getting a mortgage. So hey, Michael, thanks for coming on today. You know, Ron,
Michael 0:30good to be here.
Ryan 0:32Okay, so let's just say someone's looking at investing in property, maybe they've got their deposit at the moment. Generally, I think most people would just be like, Okay, I'm just going to go to the bank and apply for a mortgage straight off the bat or speak to a mortgage broker. But there's a lot of things that they can do to help set them up for success before even getting to that point, or if they're in the process of saving their deposit isn't
Michael 0:53that they absolutely is. And and, and that will just make it much, much easier. Firstly, for them, and then for the the broker and the bank to approve their loan.
Ryan 1:06Okay, so what are some of these things that people need to be aware of or need to start doing before they apply for a loan?
Michael 1:13Well, there's obviously some basics, you can have all of your documentation, you would be surprised how difficult it is for sometimes for me, literally just to get you to send me the information that I need. Now, I know that sounds like basic housekeeping, but your life is going to be easier if you've got some basic things ready.
Ryan 1:33What documentation are we talking about here? Ah, I
Michael 1:36think I'll go through a really brief list. But if nothing else, you could have your payslips ready. Sounds basic, but you'd be surprised how many people can't find them. If you're self employed, really big one have done your tax return, that lots and lots of people who are self employed a front front up with their their tax return from last year or two years ago. And, and sometimes that's enough, but at the moment, you'll find that, particularly after we've, so we've worked our way through the pandemic, self employed, people really need to have their June 2020 tax returns done. The banks are really big on having as much current information as they can. And for a self employed person, a June 19 tax return isn't gonna cut it.
Ryan 2:25Yeah, especially with all the changes that have happened in 2020. With COVID. Like, just because you have this much in 2019, that does not have any correlation to what you may have earned in 2020....
https://www.youtube.com/watch?v=iNAG0fxF6Kk
Matt Chamerlain was able to purchase his first property at the age of 24 while on a low income. In this episode we talk about early financial lessons he learned, how get got into property, the details of his investments and his plans for the future.
This is an inspiring interview with an up and coming property investor and I'm grateful that he was able to share his story with us.
0:00 - Introduction0:40 - Matt's first financial lessons7:09 - What go Matt into property9:59 - How to invest on a low income17:13 - Avoiding bad debt19:00 - Why did you use a buyer's agent?24:38 - The experience using a buyer's agent27:57 - Matt's property details30:59 - How has owning the property been32:35 - What's Matt's long term goals38:35 - Last big takeaway
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Transcription
Ryan 0:00Today, I'm really excited because I have a very inspiring investor on the channel. Today, I'm interviewing Matt Chamberlain, who was able to purchase his first property at the age of 24. All while doing it on a low income. I love these stories where we can talk through people's journey, how they got into property, how they're able to secure their property, and where they're looking to go in the future. So hey, Matt, thanks for coming on today.
Matt 0:23no problems at all. Ryan? Glad to be here.
Ryan 0:25Yeah. So you hit me up over email and said, I've been listening to you for years, you've used Ben and Simon as buyer's agents to help purchase your property. Do you want to chat? It took me way too long to get around to doing this. But I'm really excited to talk to you today about your journey. So do you want to take us back, I guess, to the beginning, where did interest in property or personal finance and things like that start for you, it was,
Matt 0:49it was at a very young age, my, my mum probably was the best role model for this when I was maybe 567 years old. Back then we she opened a like a Super Saver account at the local bank with, you know, for my brother and I, and maybe not, you know, on day one, but over time, she really educated us on you know, the perks of that particular savings account, and what you have to do each week to achieve, you know, your high interest rates, and that kind of stuff, which, you know, as it happened, it was depositing a certain amount of money each and every month. So what she would do is, she would give my brother and I pocket money, she'd give us $10 each week, but what she would do is she'd hand it to us say it, you know, at the school gate, and then we'd all go down to the bank. And then we deposit it without deposit book straight to the bank teller, put it into our bank account. And, you know, we got the receipt back. And we could see over time, our all of our different lines on the on the checkbook, where, you know, our money was slowly increasing over time. And I guess that was probably the very first introduction for me with, you know, learning about money and how money works. But then, you know, fast forward five, five years or so when I got my first job when I was 13. Again, sorry, tax man, but I always got paid in cash back then. So the, the owner of that business would pay us in cash again, same thing, I think the best thing about, about having that experience when I was much younger is that I could see, you know, I guess cash, see notes and dollars and actually probably associated that mostly with walking straight to the bank, as opposed to walking into the canteen or something like that,
Ryan 2:40you know, that was me when I was 13 or 14, I got a paper on. And so I would go around the streets blowing my whistle, people would come out and buy papers and tip you and that's kind of how I started. And yeah, same as you got paid in cash, looking back on it never even thought about tax or anythi...
https://www.youtube.com/watch?v=yD__-JjLsOI
There's been a lot of changes this year when it comes to property finance in Australia. Lowering interest rates, government incentives, easing lending requirements have all played a role in easier access to money.
In this episode we discuss with Michael Brown from MortgageBrokerSydney.com.au about what's been happening as well as some of the changes on the horizon.
0:00 - Introduction0:43 - The Tighter Lending Environment of The Last Few Years3:57 - Covid's impact on lending5:22 - Government making lending easier7:45 - Investors vs Home Owners9:35 - Things to do to get a loan more easily11:08 - Will lending get easier in 2021?13:05 - Discounts for low risk investors16:20 - Refinancing18:11 - Deposit requirements
Transcription
Ryan 0:00There's been a lot of changes this year. And in the last couple of years when it comes to housing finance and investment, property finance in Australia with everything that's happened with COVID-19, this year, lowering interest rates, government incentives, there's just a lot that's been going on. So today I've got with me, Michael Brown, who's a mortgage broker from mortgage brokers sydney.com.au. He's going to talk us through, you know, some of the changes that have been happening, and what the lending landscape looks like at the moment. So hey, Michael, thanks for coming on today.
Michael 0:30Thank you very much, Ryan. Glad to be here.
Ryan 0:32So obviously, it's been an absolutely crazy year. With everything that has happened. He really through I guess, you know, going back to I think last time I really did not date on this was when Apple was bringing in their changes. This was even prior to Royal Commission. What was it like kind of going through that period of time where lending was getting tighter and more restrictive?
Michael 0:56Look, that was an incredibly frustrating time for any mortgage broker. And lending in general, particularly mortgage broking because we had our profession splashed all over the headlines, in a disproportionate manner, I would have said give to the banks, who, broadly were the real culprits, if I can put it that way at the time, and I found it very difficult. But as a general ism, everyone became so careful, and really, just just wouldn't do anything. It was such a cautious atmosphere to try and get anything done. And it was, it was very difficult. It's a bit easier now. But certainly,
Ryan 1:41I kind of wanted to set up the contrast of what it's been like for the last couple of years to kind of what the landscapes like Now, obviously, COVID here, we had lock downs in Sydney, you know, around March or April, I can't even remember anymore. It's been that kind of year. But how have things changed now in the lending environment?
Michael 1:59Is it easier to get lending at the moment. So if you if you walk through that period, very quickly, without trying to bore anybody, as the Royal Commission started to release findings, and you know, when people or institutions preemptively changed some rules, and then as they were advised of Royal Commission outcomes, they subsequently changed their rules, that produced a tightening of credit, which meant that it was more difficult to get money. And some of those rules you've seen, or you would have seen, sort of discussed with within the the media broadly around things like the level of investigation into people's living expenses, all the way down to what you had for lunch this week, which is a little bit excessive, but that's where we got to, and, and so at its worst, the the requirements for information were, you know, extensive, as much as information as you could possibly give, and even then more, I would have imagined, it'd be quite hard for investors to get bones around that time, just because of how tedious it would be to go through that process. Look, there were plenty of people who just gave up. And certainly,
https://www.youtube.com/watch?v=b3IomyO5Q3w
Lisa Tran has been able to purchase 2 properties by the age of 30 and start her own successful business.
0:00 - Introduction1:00 - How did Lisa started in property?4:00 - First property details6:40 - Lisa's second property8:35 - Lisa's long term strategy14:57 - Using a buyer's agent18:00 - Lisa's next steps23:30 - Biggest takeaways
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Lisa's Video
Transcription
Ryan 0:00Today, I'm really excited because I'm interviewing a very inspirational woman who has been able to buy two properties before the age of 30 and start her own successful tutoring business as well. So today, I'm really excited to talk to Lisa Tran about just her property journey, how she got into property, some of the things that she's learned along the way. So hi, Lisa, thanks for coming on today.
Lisa 0:24Hey, thanks for having me. I'm so excited. I've been watching you for so long. This is a little bit surreal. So
Ryan 0:30yeah, it's also because you texted me or you commented on a YouTube thing saying I did a video and mentioned you. And I was just like, it came at just the right time, because I was like, Okay, I want to get back into talking to people who are out there just doing their thing, investing in property, creating the life that they want. And I was like, Oh, this person, I watched some of your videos. I'm like, Yeah, she she lines up, this is going to be great. So do you want to tell the people out there a bit about your property journey? Let's start, you know, way back at the beginning. When did you start becoming interesting? Interested in property?
Lisa 1:06Yeah, sure.
So I guess my journey is a little bit of a different one, because my interest in property came much later than when I actually purchased the first property,
which seems a bit odd.
Ryan 1:22So you purchase property before you actually interested in it.
Lisa 1:27So when I was 23, my parents had been pretty interested in property themselves. I had a couple of properties themselves. And they're like, Lisa, you know, you got to get in on this. This is how you make money. It's not about the job. It's about, like, how much land do you have? So I was 23. I was studying pharmacy at the time, I was doing my internship. So it was a really busy year for me. So I had no interest in property whatsoever. But my mom was just like, you know, I'm gonna do all the research for you. I'm going to get out there and, you know, do the bidding for you. You just pay the mortgage. And I was like, oh, okay, sure. And I had no idea what I was committing myself to. Is this.
Ryan 2:12Is this like, a parental obligation thing? Like you felt like, Oh, I have to do this because mom said it.
Lisa 2:18I think sorry. But I guess like, I am also quite. I'm like the ideal child, I'd say I'm very like, yep, I'll just follow insert with what you want. As opposed to, like, verbally?
Ryan 2:33Not me. I'm definitely not the ideal child.
Lisa 2:36Yeah, definitely a parental pleaser, like, I just want to make my parents happy. Um, so yeah, I guess in that sense, I was actually really lucky and privileged to have parents who actually kind of knew what they were doing and got my foot in the door a lot sooner than I would have if I was to be interested in property, which only came down several years later. So yeah, I purchased that property when I was 23. Signing paying. I have saved my deposit. So I've been working, you know, from when I was 19, through 23, as a pharmacy assistant, so I had the money. It was just a matter of our parents.
Ryan 3:18What were you saving for then if not a property?
Lisa 3:21I don't know.
I don't know. Actually, it was just that the money was accumulating there. Um, I wasn't the best saver either. But I used to wag a lot of uni in order to work. So I think that's sort of how it like, worked out quite well. Yeah, like I do 20 hours to 30 hours of work each week,
https://www.youtube.com/watch?v=91qi5Rcfrpk
As a property investors you want to make sure you get the most rent possible so you can get the best return on investment possible. Today we talk about how to increase the rental return on your property.
0:00 - Introduction0:55 - Differentiate your property3:33 - Marketing your property better7:36 - Doubling rental income9:10 - Presenting your property well12:00 - Increasing rents over time
Rental Results - https://rentalresults.com.au
Rental Results YouTube Channel
Transcription
Ryan 0:00As a property investor, one of the things you want to be able to do is to get your property rented, but also to get that property rented for the best price possible so you can get the best return on investment possible. So today I have with me, Lauren Robinson from rental results.com.au. She's a rental manager. I've been in the industry for nearly 20 years now, and knows a lot about this stuff. And in today's episode, we're going to talk about how can we increase our rental return on our property and make sure that our properties always rented. So hey, Lauren, thanks for coming on today. Yeah, thanks
Lauren 0:35for having me, Ryan.
Ryan 0:36Yeah. So obviously, we want to make sure our property is rented and not vacant, because when it's vacant, we're not getting any rent rental income at all. But also, we want to maximize the rent that we can get on a property. So today, we wanted to share a few of those things. So what I guess how many of the biggest tips that you have for how to increase the rental return?
Lauren 1:00Yes, I guess it really comes back to the type of property of God, but often we find, so things that are ways to differentiate your property would be say, for example, it's a two bedroom unit in a building with 50 other properties. So that's really hard to differentiate yours when they're all sort of very similar layouts, offering the same specs, and it might be a new bill. So what you can, what things that tenants would be prepared to pay more for is typically storage. So thinking about like the over the, over the bonnet of the car storage solutions, or yet or having like maybe a storage option on the balcony that's approved by the body corporate, so often units lack storage. Also, for houses, it's also understanding the type of tenant that that's that it's likely to appeal to, and then the things that they want. So typically, especially in Queensland, it's a conditioning tenants are prepared to pay more for things like dishwashers, fence yards. So we often get asked, Would attendant pay more for ceiling fans? So it really depends, but typically, if if a property was if there was a house, say a three bedroom house, and one had ceiling fans, and one didn't, attendant typically wouldn't pay more for that. But there would be a preference towards the one with the ceiling fans, whereas if it was air condition, they would possibly pay $10 a week or $15. A week more.
Ryan 2:27Yeah, so there's some certain things that's like, Okay, this will help my property get rented more quickly. So if someone walks in a three bedroom house, in Brisbane, every bedroom has ceiling fans, they're like, okay, check, at least they've got ceiling fans, if you walk into a house, and it doesn't have ceiling fans. It's like, Oh, that's annoying. But look, I can do standing fans, and I can buy it for 20 bucks from Bunnings. And that will be okay. So it's not like a deal breaker. They're not like, Okay, I'm gonna pay more for ceiling fans. But obviously, air conditioning versus ceiling fans definitely, in summer in Queensland, is a very big difference in your living experience. So I can understand why people would be like, Okay, I'm gonna pay $10 more a week or $20 more a week, or whatever it is for air conditioning. So what I'm hearing from you is it really comes down to understanding your property, understanding what people in the market want,
https://www.youtube.com/watch?v=5Tc8OZKmdd4
If you're looking at getting into the property market, the first thing you need to do is save your deposit. And if you're anything like me, you don't want that to take an extremely long period of time, you just want to get it done as quickly as possible, invest in property and move on towards your financial freedom journey. But is it possible to save a deposit in just one year?
Book in a free property strategy session
0:00 - Introduction0:45 - The 6 steps to working out if it's possible1:16 - #1: Work Out How Much You Need To Save2:05 - #2: How Much Do You Need To Save Per Pay Cycle2:33 - #3: Is That Actually Possible?3:15 - #4: How Much Extra Do I Need To Make?4:05 - #5: What Else Do You Want To Do This Year?5:45 - #6: What's Your 10 Year Goal?
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How Much Do You Need For a Property Deposit?
Transcription
If you're looking at getting into the property market, the first thing you need to do is save your deposit. And if you're anything like me, you don't want that to take an extremely long period of time, you just want to get it done as quickly as possible, invest in property and move on towards your financial freedom journey. But is it possible to save a deposit in just one year? That's what we're going to look at in today's episode. Hi, I'm Ryan from OnProperty, helping you on your journey to financial freedom. And I set the goal of saving a house deposit next year, but I don't even know if that's actually possible. And if you're in that same position where you want to save a house deposit, see how quickly you can do it, save it can be done in a year, then follow me as we work that out. And I show you how to do it yourself as well. So it's really quite simple to do you need to work out how much do I need to save, break it down into you pay cycle monthly, fortnightly weekly, how much I need to save every month or week, etc? Then ask yourself, Is that even possible? And if it is possible, great. If it's not? How much extra Do I need to make? And is that possible? And also at the end, ask yourself and assess the situation say Okay, what else do I want to do with myself next year? And does this align with what I want my year to look like? So let's go through that now starting with number one, which is work out how much you actually need to save. So I recently did a video with Simon Everingham exactly on this topic, which I will link up to down below. But the basics of it is you want to save around a 10 to 20% deposit for your property, as well as about 6% in closing costs. For me, I'm looking at a $450,000 property times by a 10% deposit, and 6%. So you hear 45 grand for a deposit as a 10%. And then around 26 or 27 grand in terms of the closing costs. So all up, you're looking at around $72,000 that would actually need to save. So you can see there, there's my pretty simple calculations. So let's round that up to 70 grand, that's how much I would need to save. Now we're to go ahead and take that $70,000 and then we divide it by our pay cycle. So for me, I kind of work on a monthly schedule. So okay, how much would I actually need to save every single month? Or if you work on a weekly schedule, you divide by 52? How much do I need to save per week super rough estimates because I don't have my calculator on me, but I need so grand six grand a month, around 13 $150 per week. So that's how you break it down super easy. Next question to ask is, can I actually do that? Is that actually possible for me? Well, for me right now, my business is paying my way. So it's paying for my life and everything. My business income is pretty passive in nature, but it's just paying for my life. It's not giving me an extra $70,000 per year after tax that I can use to save towards a deposit. So for me, is it possible? The answer is a big fat or big fat Helmer, and my current situation current income? Is this possible for me? Absolutely not.
https://www.youtube.com/watch?v=0Ntr0rcFfHs
One of the biggest fears people have when investing in property is whether or not their property will be rented or lie vacant. How do you make sure your property gets rented.
Rental Results
Rented Book
0:00 - Introduction1:26 - How to make sure a property is able to be rented before you buy it3:57 - Understanding the type of tenant6:09 - Marketing your property properly7:25 - Have you ever had an unrentable property?9:08 - How to rent your property faster10:53 - How long does it take to re-rent a property13:00 - Should you get a rental appraisal before renting a property?
Vacancy Rate Checker
Transcription
Ryan 0:00One of the biggest fears people have when looking at investing in property is how do I know if my property is going to get rented? Or if you already own a property? How do I make sure that the property doesn't stay vacant? So today, I have with me, Lauren Robertson, who is a rental manager from rental results. And we're going to talk through this and she's going to give us some insight. So you can work out whether a property is likely to be rented or if you got a property, how to get it rented. So hey, Lauren, thanks for coming on today. Yeah, thanks,
Lauren 0:30Ryan. Thanks for having me.
Ryan 0:31No way. So do you want to just give us a quick rundown of I guess, who you are and what you guys do? And then we'll jump into you know, how we can assess this?
Lauren 0:40Yeah. Great. So yeah, I own rental results. So we're a property management specialist company. We've been around now for over seven years, and we manage over 600 properties within the inner city suburb of Brisbane. So 15, Kay's from the CBD, also been doing property management for 18 years now. And we've won quite a few national awards. So yeah, it's a long time to be in property management. But love it still love the the industry.
Ryan 1:07Yeah, so let's just say you've rented a lot of properties, you've seen a lot of properties in your time, you know a lot about this space, and what makes a property likely to get rented or what makes the property more likely to stay vacant? So let's start with the investors looking to purchase a property and then we'll go on to people who already own it. But let's say people are looking at a property. They're like, okay, I might want to invest in this property, but they hadn't they don't know about the market or the area, how do they know that property is likely to be able to be rented or not?
Lauren 1:40Yes, I have also written a book on this, which is rented. And it's got a website rented.com. Today, you but basically, it comes back to understanding the market. So knowing what the vacancy rates in that particular area are understanding your property. So knowing the type of tenant that that property is likely to attract and whether there's a market for that. And then also making sure the property is priced right and presenting well. So there's a number of different factors.
Ryan 2:10Yeah, so vacancy rates, that's quite easy to find sq m, have a tool that outline vacancy rates, and people go to onproperty. com. au forward slash vacancy, it'll redirect there, you can put in your suburb or postcode. It'll tell you what the vacancy rates are, what sort of vacancy rates? Will you assume a good versus bad? What should be avoided?
Lauren 2:31Yes, I think something to bear in mind is vacancy rates, anything typically under 3% is good. So over 3% is deemed an oversupply in that market. Other things to consider is whether you're going to furnish the property or unfurnished so when you're furnishing it's, it's there's benefits, because obviously depreciation and there is definitely benefits around furnishing a property. But you do need to consider that only a smaller percentage of the market is looking for furnished as opposed to unfurnished. And also, it's it typically is only works in certain areas that you're going to have a high dem...
https://www.youtube.com/watch?v=VabfHO5_R0E
You've achieved financial freedom so what now? How does that feel and what do with your time to ensure happiness, fulfillment and productivity?
0:00 - Introduction0:50 - My story2:45 - My motivation has plummeted5:00 - I've still got goals to achieve6:35 - No-one talks about "what next"8:00 - Transitioning from working hard to having balance13:00 - What motivates you?16:00 - How do I find balance?
Recommended Videos:
Can I Go From $100,000/year to $1 million/year? A Rant
Financially Free at 32…Again
Transcription:
Ryan 0:00hey you're amazing people today i want to cover what i think is a really interesting topic is that i'm financially free so what now you've achieved financial freedom how does that feel and what do you do now what do you do with your time and with your life and how do you sort through all the emotions that come with that and that's something i'm wrestling with right now and while this is about i guess me and my journey achieving financial freedom and trying to work out what to do i think this will also apply to people who have not yet achieved financial freedom but who are looking at that life and saying okay how do i get more balance how do i find more purpose how do i know what to do long term what am i even passionate about so i think it'd be interesting topic to cover and i think hopefully you can get something out of it if not you can join me on my journey and it might be interesting at least so just to quickly cover my story and catch everyone up to speed if you aren't already i achieved what i call pseudo financial freedom at the age of 28 i had online businesses that were generating me enough income that i didn't need to work and for the next couple of years i basically didn't work i did a little bit here and there but i didn't need to work and i didn't i went through a whole myriad of emotions i found that when i achieve financial freedom which has been my life goal i thought it would make me happy and it didn't i went through what i call a great depression not an economic one but one within myself in my own life where i got really depressed being financially free and not knowing what to do went on a journey of self discovery over those two years which resulted in some really big highs and really low lows i managed to overcome an eating disorder that i'd had for about a decade as well as to overcome some depression in my life it's not something that's completely gone but it is so much better now than it was i also had some massive lows in my personal life end up going through a marriage separation and at the same time my business went through a downturn and i was no longer financially free so i achieved a 28 loss did it 30 the last two years i've been working to build that back up again i'm now nearly 32 now i am 30 2:33am i that old i
didn't even know how old i am
oh my god okay no i'm 32 yeah i'm about to turn 33 but for the last two years yeah i've been working to build that back up again and i now reached a point where again i've got that pseudo financial freedom so my business earns enough money to support my lifestyle where i don't feasibly need to work for at least the next couple of years and while i have plans to continue to work and to grow the business pay off all of my debt invest in property achieve that long term financial freedom i've also reached this point again again a second time where it's like okay i don't need to work what am i going to do and i thought that this time around it would be different because i've been through this before right i've had this freedom before and been through the depression and self discovery and this time building my business while i was in debt and in a worse financial situation than ever in my life i nearly went bankrupt i was way more in tune with myself and my life and what i enjoyed and what i wanted out of life and i was just so much happier in the process i wasn't try...
https://www.youtube.com/watch?v=9xnCtizqiNg
With everything that has been happening lately you would be normal to think the Australian property market is likely to go down as a result.
But this new data about Mortgage Finance from the ABS suggests that property prices may actually go up, at least in the short term.
0:00 - Introduction1:10 - New mortgage growth may lead to property price increases2:57 - New mortgage growth explained3:57 - The correlation with price growth5:39 - Growth rate seems to affect property prices9:05 - Are we in a bubble?11:33 - This seems to be a good short term indicator, but not long term
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https://www.youtube.com/watch?v=bx2YmRCwOug
It's been a little while since I've recorded a video but I'm excited to announced that I'm financially free…again
0:00 - Intro1:09 - My first time experiencing financial freedom3:08 - Struggling after losing financial freedom5:30 - Sacrifices were required6:30 - I now consider myself financially free8:05 - What's next for me?12:15 - No one really believed in me14:50 - I'm proof that you can do it too
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5 Stages of Financial Freedom
Transcription
it's been a little while since i've recorded a video but i am excited to announce that finally i am financially free again i'm 32 and i'm now financially free for the second time having lost my financial freedom and now regained it now i call this pseudo financial freedom because i have income through online businesses that occurs automatically and so i don't technically need to work but if i just leave it and don't work in a couple of years i won't be financially free anymore so it's not the long-term financial freedom that you get through things like investing in shares or investing in property where you're financially free for your entire life but it does open up a lot of choices and it is really exciting so in today's episode i want to share a bit about my journey a bit about how i got there and what i plan to do now that i'm financially free for the second time at the ripe old age of 32. so hey i'm ryan from on property helping you achieve financial freedom and this has been something that i have been working towards and working really hard for over the last couple of years if you've been following my journey for any period of time you'll know that at the age of 28 i achieved sudo financial freedom for the first time having online businesses that earned in the low six figures where i didn't need to work i would work a couple of hours a week i would record some interviews and kind of just work for fun and work to maintain things a little bit so i had about two years where i didn't need to work so from 28 to 30 i hardly worked at all and i went on a massive journey of exploration during that time at 28 having achieved financial freedom which had been my you know life's ambition and life's goal i got really depressed because i'm like oh financial freedom isn't the pot of gold at the end of the rainbow it doesn't make me magically happy in all areas of my life yes it takes away some level of stress but i need to find my happiness and so i went on a journey about 18 months or two years of actually finding out who am i what is it that makes me happy and what is it that i want to do with my life now i worked that out got to a place where i was happy no longer feeling depressed i'd suffered with depression throughout my life so really great mental position to be in but then at the age of 30 i went through a separation and i also went through a business downturn so remember i talked about how if i don't work for the next two years then i won't be financially free anymore well that's exactly what happened to me is that i at the time that i was going through this separation and i had increased my outgoing so increased all my expenses paying for two houses and things like that at the exact same time that happened my business went through a really big downturn and so i ended up in a whole bunch of debt and i didn't have the income to service that debt so that was two years ago put me in a position where i was you know struggling to get by and for the next year to 18 months i really struggled to get by and to pay my bills i picked up a part-time job in a cafe just to i guess keep things going and to be able to buy food for the week while i built my online business see i still had some passive income coming in and if i didn't have three kids if i didn't have debt and i didn't have many expenses in my life if i was just a single person living in my van i would have still been financially free at that point i s...
https://www.youtube.com/watch?v=qBVNwxREUSA
One of the hardest things as an investor is paying off debt and saving your deposit. When you don't already have those income generating assets it can be a really difficult process to do.
But there are some tips that can help you along that journey.
0:00 - Introduction1:30 - Simon's Saving Story4:25 - #1: Get Realistic With Your Situation and Set Goals5:27 - #2: Pay Yourself First7:32 - #3: Reduce Expenses or Keep Them Low10:50 - #4: Make It a Habit13:33 - #5: Increase Your Income16:50 - #6: Delay Gratification17:47 - 2 Years Ago21:45 - #7: You Have To Sacrifice24:10 - It Gets Easier As Time Goes On
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Transcription:
one of the hardest journeys as an investor is actually paying off your debt if you've acquired debt and then going ahead and saving your deposit when you don't already have those income generating assets it can be a really difficult process to do but there are some things that can help you along that journey some tips that both myself and simon have applied to really tackle this in our own lives and today we want to share those with you so hey simon thanks for coming on today no worries how you doing man yeah really good so in this we're gonna look at each of our situations so for simon he was able to purchase three properties in 18 months which is a huge achievement and he saved the deposits for his first two investment properties himself so really diligently saved over a number of years and for me i found myself in a situation where i went through a separation business went through a downturn i ended up in a whole bunch of debt like crippling levels of debt and i've been able to pay off tens of thousands of dollars worth of debt in the last couple of years and so i'll be sharing my examples on paying off debt and you know being in a really bad debt situation and simon will share his examples of not being in that bad situation but actually the next step which is saving the deposit and going ahead with that so simon do you want to start with your story when you decided to start saving your deposit and what steps you put into place in the beginning yeah so i really only started about three and a half years ago um actually earning enough of an income where i can really save a lot so i moved up to the sunshine coast from sydney at the beginning of 2017 and um that was the first time that i had had a full-time income prior to that i was at university or basically just around and surfing but just living up living the life to be honest and um i did always have really good saving and spending habits which was something that was incorporated from my parents from a super young age basically from the first job that i got they always encouraged me to save 10 to 20 cents out of every single dollar that i earned so that was something that i always did and for somebody that never earned a strong income but still wanted to travel and go out with friends and and have those choices i needed to when when i was only earning a little bit of income i still needed to make sure that i was saving a bit of money so i could enjoy my life so i already had those really good budgeting and savings habits but then when i came up here and i finally started to earn a good income i still maintain the same spending habits and saving habits that i had so even though my income had dramatically increased my expenses and my lifestyle stayed relatively similar which was one of the biggest things for me so creating that budget creating those saving and spending habits is super important um it's just not going to do it itself like it just really isn't like you need to sacrifice and you need to put these little things that stuck in place but it really enables you to get to where you want to be a lot faster and it's definitely allowed me to do that and you know even as my incomes consistently increase...
both me and simon are on our ways to achieving financial freedom and we're going about it in very different ways to each other with me i'm focusing on online passive income growing my income streams through there getting what i call pseudo financial freedom first and simon is focusing on building up his property portfolio and he's working for someone else or working with his brother and part owner in the business over there so we thought we would share some of our best tips on how to become financially free and things that we've learned on our journey along the way so hey simon thanks for coming on and sharing today yeah yeah really excited about this one one of my favorite topics as we all know yeah both you and i have been very passionate about financial freedom i think your rich dad poor dad and those books really started it for me what about you what got you passionate about financial freedom over other investment goals the funny thing is it wasn't something that was really talked about in our family until sort of recent years so i never really knew what financial freedom was and every single person in my life was still working and nobody actually had any level of financial freedom that i was aware of um so it was only really when i started to kind of actually start taking action and start creating my plan where i realized oh financial freedom is something that we can all achieve yeah and so just so people know as we get into this each of our stories simon has purchased three investment properties in the last 18 months massive achievement congrats on that two of those being investment properties one being is own home so that's kind of his plan is i guess working in a job using that money to invest in properties and achieve financial freedom that way i've achieved what i call pseudo-financial freedom through my businesses so had businesses that kind of just worked for themselves and i didn't really have to work much i then ended up in a bunch of debt and wasn't financially free anymore and i'm pretty happy to say that i've worked myself out of that situation and i think if i stopped working today my businesses would again run themselves for multiple years and i wouldn't have to work so i'm not financially free yet but i've kind of built up that passive income stream online and then eventually i want to invest that into property as well so i've achieved it lost it and then kind of achieved it again and now i want that long term so we've both been on the journey we're not completely there yet but we've learnt a lot along the way and we want to share that and so do you want to go first simon with one of your tips for achieving financial freedom and moving towards that yeah definitely
1: Have a Clear Plan
i think this is you know on both of our lists no doubt about it so maybe i can share my thoughts on um on this and then you can talk a little bit but it's having a plan and having a clear plan at that as well so that is the number one way to achieve financial freedom because the reality is there is so many different ways that we can do it you know you're going through the business avenue i'm going through the investing avenue there's so many different ways to achieve the same thing so rather than trying to pull lots of different pieces from all of these these different places um you know honing in on one and creating a plan with that one in order to to get to where it is that you want to be so for me it's kind of thinking all right well where do i want to be in the future or where am i going to be happy in the future and there are then reverse engineering and back from there so right now for me it's kind of replacing the average australian household income somewhere between 80 to 100 000 because that's going to give me options that's going to give me choices to do what i want when i want and all i need to do is reverse engineer that back utilizing my plan which is focusing on investing in properties paying off the de...
https://www.youtube.com/watch?v=bjwGqXbHMBQ
There are some steps I'm taking on my journey to grow my income and become a millionaire. Today I want to talk about a baby step I took recently on my journey towards $1 million per year.
0:00 - Introduction1:40 - Understanding a bit about my business4:15 - My baby step is: Paying people to write articles7:00 - Investing in assets that generate income8:40 - A big realization that the work I'm doing is only worth $45k/year10:50 - A shift in mindset13:55 - Do I even want to get there? Or do I want to focus on lifestyle?
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Transcription:
hey all you amazing people i'm ryan and today's episode is going to be a personal chat about some steps that i'm taking on my journey to grow my income and become a millionaire basically which kind of sounds ridiculous to say but the other day i had the realization that i could go so far with my current mindset and earn a decent amount of money with my current mindset working by myself writing articles and doing stuff like that but i had this realization the other day that earning ridiculous money what feels like ridiculous to me we're talking a million dollars per year someone earns that someone does it so it must be possible so previously that was completely outside my realm of possibility didn't even think about it i wouldn't even imagine it wouldn't even dream a life like that because it just i don't know why but i just believe like that's that's not for you that's not possible that's not the life you're going to live and i was on the beach with my partner crystal and looking at these waterfront houses and thinking someone earns that money and i had this realization the only person stopping you from achieving that is yourself and your own belief systems so i did a full episode kind of working through that together together all by myself but on camera so you can follow on the journey i'll link up to that down below and today i want to share with you some steps that i'm actually taking towards that now this is a baby step i haven't taken huge massive steps or made massive investments or anything like that but this is what i think is kind of a monumental baby step along the way if that's even a thing so to understand you first need to understand a little bit about my business and i run an online content business so i write articles i make podcasts i do videos like this one but i have a bunch of different channels and websites so i got on property but then i got a bunch of others in other niches as well so i write the articles or make the videos and then over time they generate passive income so you write an article once it'll generate traffic to your website and advertising revenue you know perpetually for you know kind of three to five years sort of thing until it tends to taper off i've got some articles that are still going strong ten years later and doing well but you know a lot of them tend to last a couple years and then taper off so i was looking at my business and what i can achieve i've always done everything by myself write all the articles format editing making the videos all by myself and i was looking i guess at the three year time span which is how far i can look and i thought okay given the work that i'm doing if i keep doing this for the next three years if i get the results that i think i'm going to get probably looking at a pretty decent income you're talking mid six figures sort of range somewhere between you know 100 000 uh if things don't go well to 500 000 if things go exceptionally well and everything goes to plan which let's face it it never does but kind of in that sort of range which is amazing money don't get me wrong like that is incredible i'm incredibly humbled and gratefu...
https://www.youtube.com/watch?v=jr1v5WgC77o
If your goal is to be financially free, where your investments are completely paying for your life and you have choices to do what you want with your time then these stages are great signposts on your way to that goal.
Understanding what stage you're in can help you stay motivated and help you to know exactly what to do to get to the next stage.
0:00 - Introduction1:35 - Stage 1: Survival3:47 - Stage 2: Progress6:41 - Stage 3: Debt Free8:57 - Stage 4: Growth13:11 - Stage 5: Freedom
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Transcription:
hey you incredible people today i want to talk about the five stages towards financial freedom so if your goal is like me to be financially free where your investments are completely paying for your life and you have choices to do whatever you want whether that be go to the beach every day or pursue a job that you absolutely love then there's actually stages to get there we don't just get there overnight and these five stages five stages of progress towards financial freedom i find it just really good benchmarks really good goal posts so we can look at it and we can say okay where am i at right now in this journey and what do i need to do to move towards the next stage something really interesting in my life is that a couple years ago i was what i called sudo financially free started business an online business that was generating me enough income that i didn't need to work and so i had a couple of years where i basically didn't work because my business was paying for my life but what i didn't realize at the time was i was actually only in stage three of the journey towards financial freedom i hadn't even moved to stage four or gotten to stage five yet whereas if i knew this if i knew what the stages were i could have realized instantly you're only in stage three ryan you've got to keep working or you've got to be smarter with your money to move to stage four to ultimately get to that long-term financial freedom so that's the journey that i'm on now i'm excited to share these stages with you and i hope that you go through this and look at okay where am i at stay motivated what do i need to do to get to the next stage so starting with stage one this is the worst stage to be in and that's the survival stage this is the stage where you're just struggling to get by you've got a lot of bad debt consumer debt so that might be credit cards or car loans or personal loans or student loans you're kind of buried in debt you're buried in the expenses of life chances are in survival stage your income is actually less than your expenses so you're getting to the end of each and every pay cycle and you don't have enough money to keep living this means you either just go without you know fasting can be healthy so maybe you do that but more likely you've got a credit card and you're using that to get by at the end of each pay cycle so you're in this really bad situation where you're not getting ahead you're quite far behind already in terms of net worth you've got more debt than you have assets and so it's just it's just difficult and to be honest this is the stage that i've been in for the last year last two years maybe so i was in stage three with my business doing well and just kind of getting by and then my business went through a downturn i went through a separation ah a lot of stuff happened and i moved back to stage one so while we would like to be constantly moving up towards financial freedom stuff happens in life right life isn't a straight line it's not perfect things go wrong and that's definitely what happened to me i didn't prepare i didn't do well enough and so i ended up back in stage one which is survival now i'm still in this stage no i'm not i'm in stage two a year ago i was in this stage and it was horrible i couldn't really pay my bills i was living week to week paycheck to paycheck so to speak...
https://www.youtube.com/watch?v=EDHgEPd2mE0
What does it take to be a millionaire or make $1 million per year? What do I need to change in order to get there?
Today I had a mental breakthrough where I realised that I didn't actually believe being rich was possible for me.
0:00 - Introduction0:40 - What happened today2:55 - My incorrect beliefs about making $1 million4:09 - Hard work vs solving hard problems7:15 - I haven't even thought it was possible10:40 - Value vs effort14:35 - I need to start outsourcing17:55 - Time to step up as a human24:40 - It'll suck in the beginning trying to learn to hire people28:00 - Nothing has changed in my day to day, but my mindset has changed29:05 - $1 million won't make me happy31:38 - I'm not perfect
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Transcription:
what does it take to be a millionaire to make a million dollars per year and how do you get there what what do i need to change in order for me to get there and i wanted to sit down and record this quick video not really sure if i'm going to publish it or if it'd just be for me but i definitely have in my mind at the moment that i could make a decent income through my business you're talking low to mid six figures so like three to five hundred thousand dollar range i feel like within the next few years that is possible in my business with the strategy that i'm implementing and that is extremely good money don't get me wrong but i went out with my partner crystal today and we went for a walk along like the bay down here and we were just sitting on the beach getting some sun out the front of these houses and these houses are just absolutely amazing right on the bay right on the water just done up really well really beautiful it would just look like amazing places to live with such a beautiful view like who wouldn't want to have a coffee in the morning looking out at that and i just had this kind of moment sitting there where i was like how i think i i think i even said it to crystal i was like how does one earn enough money to even afford a house like this like these houses would be worth multiple millions of dollars three five million plus probably it's like how does someone earn enough money to afford a place like this it just kind of feels out of reach it just kind of seems like ridiculous money and then i just like even just saying that i had this realization that my own mindset i feel like that low to mid six figure is definitely achievable i've achieved low six figures in the hundred thousand dollar range multiple times in my life through being an employee and through running a business so i know that that's achievable and actually achieving that feels quite easy to me and i know that's kind of hard to say and hard to publish i don't want to gloat about that or anything like that because i know there's people out there who struggle to make money but for me creating a business that makes that level of income makes sense it's part of my skill set it's something that i can do there's obviously no guarantee that the business will succeed but it's like okay with with a fairly good confidence rating i could start a business that would achieve this within a certain period of time but it's interesting because like that's achievable for me and that seems easy but making a million dollars a year seems ridiculous like how was how would one even do that and i've got in my mind that in order to make a million dollars a year you have to have this completely unbalanced life so for me i am a cruisy person i like balance in my life i'm happy to work hard um but i don't like it consuming my life it's not the most important thing to me my kids spending time with them being around as a dad um being a good partner is probably the more important things to me than money though in saying that when i had no money it's like you've ...
a lot of investors especially newer investors want to purchase an investment property near where they live there's a lot of benefits to that but there's actually a lot of risks and negatives associated with that as well so if you're wondering should i buy a property near where i live or should i invest somewhere else today i want to give you some pros and some cons to help you think about it and make that decision for yourself hey i'm ryan from on property helping you on your journey to financial freedom and i remember growing up as a kid my parents wanted to invest in property and so they looked within the very suburb that we lived in so cronulla here in sydney beautiful beachside suburb they had purchased their own home in the area they were looking to buy an investment property and they ended up purchasing a unit in cronulla they owned it for a couple of years i think it was negatively geared ultimately they ended up selling the property at a loss unfortunately and didn't make any money off it now that's not to say that happens to everyone a lot of people invest near where they live and have great success but how do you know whether you should invest near your home or not what are the benefits of doing it what are the negatives of doing it and why do so many investors go to other suburbs or other cities or even interstate in order to build their investment portfolio so let's talk about that first let's talk about the pros which are probably a bit more obvious one of the benefits of investing near where you live is that you know the area and we will come back to touch on this in one of the negatives because you know the area and what it feels like you know where the good streets are you know where the housing commission is you know where the good cafes are and all that so you're familiar with the area chances are you like the area and you like living in it and other people do as well so there's a benefit there in that you know the suburb but one of the negatives which we'll come back to is just because you know the suburb from living there doesn't mean you know the data associated with that suburb and how it's going to perform in the future just because you want to live there doesn't mean that that suburb is going to grow in value into the future but you do know about it you can avoid some race because you know about the suburb itself other benefits of it that it's quite easy to inspect properties because they're very close to your home you don't have to go very far on a saturday or after work in order to inspect them and it's also possible for you to check in on your properties i think this is why a lot of people want to invest near their home so that they can check in on it actually the street that i'm in right now there there's a guy in this street who owns a house just you know one or two down there and he actually bought the house across the road so right across from me now so he he owns both and he's rented it out and he can see what's happening in that house now finally he's going to develop this property and so it's been rented out to a bunch of let's just say youthful boys and some questionable things go on at that house but he's just renting it out until he's going to knock it down and develop a i think jewel or triple occupancy home there so like a duplex and a granny flat there but yeah he owns in the street every single day he can see what's happening at that house that's an extreme example if you can check in on your property and so that might help you sleep better at night knowing that you can drive past it and see you know doesn't look in decent condition and maybe that would help you to avoid some of the issues like ben had if we talk about ben's property horror story which is absolutely hilarious i'll link it up down below and i'll put like a snippet in here so you can hear a little bit about his horror story three weeks ago i get a call off a mate who's living in sydney um and he's like turn on the loca...
https://www.youtube.com/watch?v=xBPNWQEkU24
In this property market update for August 2020 we'll be having a look at some of the data behind Australia's housing market and try to learn from it so we can invest more successfully.
CoreLogic August 2020 Update Video
Nugget News August 2020 Video
0:00 - Introduction1:15 - Australian market is in a decline2:05 - Capital city growth/decline figures4:21 - Rolling quarterly change4:59 - National home value index5:42 - Cash rates at all time low6:26 - New listings are rising8:05 - Percent change in dwelling values since COVID Peak9:33 - The fiscal cliff looming in October10:44 - Martin North's example predictions
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Brisbane Property Market Update August 2020
Transcription:
hey i'm ryan from on property and welcome to my australian property market update for august of 2020. what i like to do in these episodes is to talk through where the market is at how is it performing at the moment has it gone up has it gone down what are the trends that we're seeing and what may happen in the future now i don't have a crystal ball i don't know what's going to happen no one out there really does but i think it's important for us to look at the data so that we can assess okay what do we want to do how do we want to invest at this point in time whether you're looking to take advantage of current market conditions and buy in a weaker market where there's less buyers to compete with maybe that's you still important to understand the data or if you're someone who's like okay with everything that's happening i actually want to wait this out until things start to improve it's important to look at the data as well so we're going to be learning this together talking through this together and i hope that you find this useful we're mainly going to be looking at corelogic's market update video and i'll link up to that in the description down below if you want to go through it yourself as i've got more data in there that we won't necessarily cover in this video they're great videos i watch them every single month and love them so looking at the australian property market as a whole for the month of june we are now in our third consecutive month of decline so june well july sorry declined 0.6 which was slightly less than june which declined 0.7 percent but yeah we're definitely in a declining market at this point in time and when i look at the data i find it hard to imagine that the market's going to grow in the near future so it looks like we might be in the beginning of an entrenched decline unless things start to turn around really quickly now obviously they could turn around things could change but i'm looking at it now and i'm kind of thinking okay we need to prepare for you know potentially a declining market or a stable market in the near future with everything that's happening globally if we jump ahead and we look at the month-on-month change in dwelling values for the major capital cities as well as the regional areas we can see that almost all the capital cities have seen some decline sydney and melbourne have had the biggest decline so melbourne's down 1.2 percent which is quite significant really sydney's down 0.9 if this trend continues like this level of declines if you play that out over a 12-month period you start to see significant declines of somewhere between you know 5 10 15 sort of range in those primary capital cities brisbane's down less 0.4 percent and if you've watched any of my previous videos you know that brisbane didn't have the big run-up that sydney and melbourne had it's cheaper to buy now than it was i think 11 years ago or even longer when you count inflation and so yeah brisbane saw some decline but not as much perth declined 0.6 which is really interesting because it's already had such a big decline it kind of looked like before covert that it was reaching the bottom of its i guess trough the bottom of its decline and that it may...
https://www.youtube.com/watch?v=MEpWVf4jPQE
A lot has been happening in the Australian property market in the last few months. Today we wanted to speak specifically about the Brisbane market, where is it at, what's the good suburbs and are there any good investments in that area?
Book a Free Property Strategy Session
0:00 - Introduction0:32 - Quick catch up1:03 - Ben's recent Brisbane analysis2:15 - Comparing the suburbs and finding the winners and losers5:37 - The differences between the different areas of Brisbane7:45 - North Brisbane vs South Brisbane9:13 - Good suburbs vs bad suburbs12:04 - Where is Brisbane at during its cycle?15:37 - Covid infrastructure bailout program16:25 - The Mid-Cycle slowdown18:07 - Getting good long term stability
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What Is The Mid Cycle Slow Down And How Might It Affect Property Prices?
Transcription:
a lot's been happening in the australian property market in the last few months obviously with the pandemic that's gone down and everything like that today i wanted to speak with ben everingham buyer's agent from pumped on property specifically about the brisbane market which is the market that him and his team specialize in they've just done a whole bunch of suburb research in that area so i thought i'll get on the line with ben we'll talk about brisbane where it's at what's sort of happening and give you guys an update so hey ben thanks for coming on today hey bro good to see you good to see you again too it's been a while definitely man it's exciting to catch up again yeah and so i love that you're in your new office i'm also in my new office which is my van which i've been loving i'm actually parked on the beach i can see the water from here but no one can see it in the video but just know that i got amazing views right now that didn't cost me heat i'm loving it man i feel the same way like this you did cost me a bit this is like a green velvet lens that i've always wanted with like a timber wall behind me but um i'm feeling fresh and loving it as well yeah and so okay so recently you guys did a massive suburb analysis of all of brisbane do you want to first talk through okay why did you do that give us like some touch points on what are some of the things that you looked at for the suburbs and like what are some of the insights that came out of that yes so i think it's important as an investor myself to constantly review the bigger picture as well as the the micro picture um so we know that based on the long term growth of brisbane being 9.7 a year according to core logic for the last 50 years that it is a long term winner we know that a lot of people moving up here at the moment and will be after the virus is over as well and so i just wanted to wrap my head around it which i do about once every year to two years and i look at you know brisbane isn't one market like there's some suburbs in brisbane that you can buy for 200k there's some suburbs in brisbane that you can buy for 2 million bucks and so you can easily get caught in that sydney melbourne brisbane trap which is it's one area but in reality there's east brisbane central brisbane south brisbane north brisbane and west brisbane and all of them have completely different stuff going on as you know yeah and so i know like previously you've kind of focused on like central brisbane north brisbane um but this time around you kind of looked at more suburbs what did you think about the suburbs as you started to look at them yeah so for me personally at this stage i've sort of not been looking too heavily into west brisbane just because there's just so much land out there at the moment that could be developed over time so from this perspective we looked at north we looked at central and east brisbane and we looked at south and southeast brisbane and the way that we do that as a business to get our heads around it is through what we call a suburb profile so we looked at things like vacancy rates ho...
https://www.youtube.com/watch?v=XQzuq5QcYTw
Sometimes the best way to move forward towards your property investment goals is to just simply take the next step.
Advanced Suburb Research Course
Transcription:
there's that saying that we've all heard the journey of a thousand miles begins with a single step and when it comes to property sometimes we make it harder than it needs to be we try and understand everything there is to understand about property we're researching the market we want to know is sydney going to go up or down this month if it's gone down 0.8 we're freaking out even though we haven't saved our deposit yet you know or we only own one property and we're nowhere near financial freedom yet but sometimes we need to get back to that simple act of just taking a step and today today i want to ask you what is your next step on your property investment journey because if you just take that next step and then trust yourself that once you take that step you can ask future self can ask what's my next step from here and sometimes just one's foot in front of the other one step after another leads you towards investing in property leads you towards financial freedom faster than trying to do everything all at once so really quick video today to just ask you okay what is your next step investing in property if you're in debt and you need to pay off that debt your next step might be learning how to budget making more money paying off that debt your next step might be saving your deposit if you got your deposit ready to go your next step might be okay i need to understand market cycles and what market to pick if you've picked your market let's say you're like ben and you've picked brisbane as your market or let's say you picked perth or you picked sydney or melbourne or hobart whichever market you've picked now you might be saying okay which region of this market do i want to invest in that might be your next step or which suburb do i want to invest in for a lot of people you're ready to go you think you've got a market but you don't know what suburb to invest in so that's going to be your next step well you need to learn about suburb research and start actively researching those markets it's actually as easy as sitting down looking at the data for the suburbs and just like next step collect the data for the suburbs and as you collect it you start to see differences i've done a whole video course on how to do suburb research so if you go to on property.com.eu4 slash suburb you can learn more about that over there but even just collecting the data on suburbs you don't need to understand okay which is going to be the best hotspot you just need to go in and look at the vacancy rates of every single suburb in that region that you're looking at compare the dsr scores compare the incomes for that area compare the sales prices and the growth over the last 12 months three years five years 10 years start collecting that data and as you collect it things start to pop out at you so often you know we get so overwhelmed it's like okay we need to do absolutely everything sometimes it's so much better to just break it down into our next step and to say okay what is my next step what's the next thing that i need to do and to do that and to do it really well and to learn that to the best of our ability so i want to ask you today what's your next step towards your property investment journey where are you at right now and what's your next step go and do that next step and trust that when you've done it you know you'll be there in the future you'll still be you but it'll be future you having done that step you can then assess okay what's my next step now and then future you will take that next step and then future future you can say okay what's my next step now and eventually you'll find yourself with a growing property portfolio and ideally financial freedom or whatever it is that you're striving for so think about each time wh...
https://www.youtube.com/watch?v=_1t6KrrDBQI
If recent times have shown us anything it's that troubled times can hit and we need to know how to successfully invest during these times. Today I read through the property investment rules to keep in mind in troubled times.
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Advanced Suburb Research Course
Property Update Article: https://propertyupdate.com.au/property-investment-rules-to-keep-in-mind-in-troubled-times/
0:00 - Introduction1:00 - Troubled times show who the real great property investors are2:50 - #1 Become financially fluent4:00 - #2 Adopt a proven investment strategy6:44 - #3 Not every property is investment grade8:30 - #4 Don't believe the hype11:15 - #5 Location does the heavy lifting12:30 - #6 Demographics drive markets12:57 - #7 Real estate investing is a game of finance14:21 - #8 The economy and our property markets move in cycles15:33 - #9 Follow my 6 Stranded Strategic Approach17:40 - #10 Don't focus on bargains18:14 - #11 Allow for an X factor18:49 - What did we learn from this20:08 - What I would add to this list
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Transcription:
Ryan 0:00In recent times have shown us anything, it's that troubled times can hit. And we need to know how to invest during those troubled times. So today, I'm going to read through an article from Michael yard news website, property update.com.au. On the property investment rules to keep in mind in troubled times, we're going to go through this article talk about some of the things that they say, I'll comment on it, we'll discuss it together. And we'll try and learn together, I did a previous one of these, talking about the 15 habits of self made millionaires. I really enjoyed it. I learned a lot from it. And I know a bunch of you did, as well. So let's go through this. Let's learn together. And let's work out okay, what are these property investment rules to keep in mind during the troubled times, okay, so they start by saying that everyone seems like an investment genius, when the property markets are booming. But when times gets tough, it's important to really know what you're doing. I saw an example, I heard an example of this, I think it's in the book, great by choice by Jim Collins. It is in the book, it's one of my favorite books of all time. And he talks about this idea of companies that succeeding in troubled times. And he uses this metaphor of if you have just a regular person going for a hike versus someone who is a world class hiker, adventurer, mountain climber survivalist on the same hike. But let's say that it's an extremely pleasant, sunny day, no issues anything like that, would you notice the difference between the two, you might notice a bit of a difference between the gear or the way they hold themselves when they walk or their fitness level. But really, they're both going to look like great hikers. But when the storm hits, and when you're in that emergency life or death situation, that's when the skills of the advanced mountaineer adventurer are going to come into play and the everyday person, we're probably going to die in that situation. But that's where it will come out. So when you got the market that's booming, you know, everyone looks like a successful investor. I just bought three properties in Sydney in 2012, let's say as an example. And you know, in 2017, you're looking like a genius. But let's say you bought those same properties in 2017, in Sydney, and the market went down for the next 18 months, you know, you're not looking. So genius. Obviously, with everything that's happened in the market due to COVID-19. Things have, you know, really kind of looking at troubled times for a lot of Australians. So saying here, I've learned not to change my strategy, every time the economy or our property markets get challenged,
https://www.youtube.com/watch?v=eUFMxCxMV4k
In my previous episode I talked about how to stop rushing to be financially free but to make the life we want now. But how do we start to work out what is actually going to give you a happier and more fulfilled life.
0:00 - Introduction2:45 - Ask yourself this question6:30 - What is my answer to this question?
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Transcription:
Ryan 0:00In my previous episode, I talked about how we need to stop rushing to be financially free house, often we see financial freedom as a pot of gold at the end of the rainbow that is going to deliver us happiness. And yes, it gives you choices. And it gives you time to pursue the things that will make you happy, financial freedom is great. But we can actually pursue our happiness and pursue a more satisfied and more fulfilled life, with or without financial freedom. And so in today's episode, I wanted to actually get yourself asking a question to find out, okay, what is actually going to make me happier, because so often when we're in the thick of it, when we're struggling to pay our bills, where we've got mortgages or rent, to pay mouths to feed, all of that good stuff that goes into making life awesome. But when we're in the thick of it, doing the day to day grind of our job, and the stress and everything that comes with that, it can be really hard to actually get out of our own heads and get out of our own lives and think what actually would make me happy, because to be honest, I kind of just worked for financial freedom up until I was 28. And I got my pseudo financial freedom. I didn't actually think, Okay, what do I want to do with my life? What do I want to do when I'm financially free? What will make me happy? I was just like, financial freedom is my goal. I need to strive to that. And I think even if I tried to stop and think, Okay, what will I want to do? I didn't really know. And so often, the things that come up are those big things, those, okay, you're going to live this travel lifestyle, you're going to live in a mansion, you're going to drive this really expensive car, all of that sort of stuff. But I think for most of us, if we really stop and think about it, we know that that stuff's not going to make us happy. We know that that's not going to make us fulfilled in life. Yet, it would be nice to have both do we need it in order to live a happy and fulfilled life? No, most of us don't. And for me, the idea of having a mansion just means more cleaning, or just means I need to hire a cleaner to keep it clean. And just the big space, it would be cold. And you know, I'd be so far from my children, I feel like we would interact less. So it's not something that I would like. So today, I feel like the answer to our question of Okay, what's going to make us happy? We're not trying to find the answer to that. We're trying to find better questions that are going to lead us to a better understanding of ourselves. So today, I have a question for you, as I sit outside here in the sun and drink my coffee, I apologize for the outside noise for the sound of the cars bouncing off the wall here for trains as they go past if and when they will. But it was just too nice to not film this morning. And so the question is this, if you were financially free, and didn't have to work, so let's just pretend you're financially free through properties, let's say you've done the to property to financial freedom strategy, I will probably have done five properties with five granny flats, or maybe you don't through shares, he comes a train right now.
However, it is that you did it, you're financially free, you don't need to worry about money, you don't need to work, but you want to work because you know, you're still young, you still want to actually do good, you want to be challenged, you want to do that sort of thing. If your financial frame didn't have to work,
https://www.youtube.com/watch?v=UPZLbtOGPHU
A lot has been happening in the Australian Property Market lately and today I wanted to share information from the Property Update article from 27th July 2020.
Property Update Article: https://propertyupdate.com.au/australian-property-market/
0:00 - Introduction0:40 - Changes in Australian Property Prices3:10 - Early market indicators5:05 - New properties for sale and rent5:40 - Rental markets6:25 - Finance activity6:42 - What's happening to property prices9:52 - New property listings and sales11:42 - Vendor discounts and time on market14:25 - Auction clearance rates15:50 - Changes in rents
Transcription:
Ryan 0:00a lot has been happening in australia and the australian property market since i last recorded an update and i was reading through property updates article on the australian property market update and i thought that this was so interesting that i wanted to go through it with you guys and to share it as well so we can get a better understanding of where the markets at and they also talk about some of the leading indicators and where the market may go so they're saying there's lots of property news and data over the last week obviously we've got that second wave of COVID-19 coming through particularly in victoria will that happen in the other states we're not sure we're going to you know see if that happens but basically if we look at the australian price heatmap here we can say that this week basically the major capital cities everything is down or steady so sydney and melbourne both down a bit brisbane and adelaide held steady perth is down as well month today everything is down or steady within the adelaide being at 0% but sydney and melbourne down 0.7 0.9% brisbane is down less 0.2% perth down 0.6% which i'm finding interesting because perth seemed before COVID to kind of hit the bottom of the market and looked like it was due for a rise but perth obviously continuing to decline if we look since the COVID lockdown so when was that that was march sometime or early april i can't quite remember now seems like a lifetime ago sydney is down 1.4% melbourne is down 3.3% brisbane has held steady adelaide is actually up and perth down 1.8% and then we've got since the melbourne lockdown which is a lot more recently everything's down or steady so where are things at since 2017 maximum so sydney and melbourne peaked in 2017 and then went through 18 months of decline and then went back up in late 2019 so if you bought at the top of 2017 where would you be at sydney and melbourne you'd be down around you know three to 4% sort of range gold coast of brisbane gold coast and adelaide you'd be up but only by a little bit 1.3% 2.4% and then perth you will actually be down 13% since that 2017 so that's actually crazy if you look at the last 12 months you can see how gangbusters sydney and melbourne have gone with 12.4% growth in sydney 9.1% growth in melbourne and solid growth in brisbane gold coast at 4.5% adelaide at 2.3% and perth is down minus 2.6% so yeah i find like this data is really interesting the saying like residential prices are mostly softening since the pandemic sorry about the aeroplane overhead if you can hear that at the moment i'm just parked out on the beach in the van loving working just on the road at the moment but this is what i found interesting as well is early market indicators so this is a number of indicators that could actually give us a clue to what's ahead so obviously we just looked at okay what's happened in the past and that's interesting to look at but what we all want to know is what's coming in the future and it's always you know really hard to predict but there's some leading indicators that can help us to understand what may happen and to give us some clarity on that so they're saying buyer activity edge higher last week as shown by realestate.com they use weekly demand report report for sale search volumes increased 0.
https://www.youtube.com/watch?v=fVtaHaOE6B0
Maybe you hate your job and you don't like getting up in the morning and you feel like you're in a rush to be financially free. I understand what that's like, but in this video I want to talk about how to get the life you want without financial freedom (but still get financial freedom anyway).
0:00 - Introduction1:40 - Financial freedom as an insurance policy3:05 - My story of financial freedom and a job I hated6:14 - What financial freedom gives you6:45 - Being in a rush to be financially free leads you to making dumb decisions9:10 - Shift your focus inwards to pursue the life you want12:39 - Start with 1% improvements15:03 - Visionary task #1 - If life was reset18:08 - Visionary task #2 - If I was financial free20:22 - Take your time and do it properly22:38 - Make your life amazing24:20 - It's a journey
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Transcription:
Ryan 0:00maybe you hate your boss maybe you hate your job and you just don't like getting up in the morning and having to go and work at something all day that you're just not passionate about maybe you want to move locations or live in a van or just do what you love and live a life with purpose and you want financial freedom in order to do that i understand where you're at i've been there in the past i know what it's like to have a job where you wake up in the morning and you don't want to go to work you just dread it but you do it anyway because you have to and you're just looking for a ticket out and you're in that rush to achieve financial freedom because that is your ticket out that is your ticket to happiness and ticket to the life that you want in this video i'm going to be a bit counterintuitive and actually encourage you to stop rushing towards financial freedom because there's risk associated with that you're less likely to get the life that you want in the timeframe that you want and to actually show you that there's a better way to do this and to start to expand your mind to the different options that are out there so i'm really excited to share this one with you because i think being in a rush to be financially free is actually setting so many people back on their journey and i want you i want you to have that good life i want you to have a life where you are passionate to wake up in the morning that every day is a good day sure you're gonna have your ups and downs but you're loving the work that you're doing you're loving where you're living you're passionate about your work you got great relationships in your life you got cool experiences that you're having i want you to have that life of financial freedom isn't the only ticket to that life and i want to talk about the idea that financial freedom is a goal that i think is worthy to strive towards i'm definitely striving towards it but rather than seeing financial freedom as a ticket to happiness rather than seeing it as your escape out of the life that you hate when you're living a life that you absolutely love financial freedom just becomes an insurance policy it becomes a backup plan it's there for you if things go bad in life and it allows you to continue doing what you want to do even when things don't go well so it's like you could be living the life that you love getting paid to do that but let's say we have you know another situation where we go into a recession and you lose your job or something like that if you have financial freedom you can continue to do work that you love and not have to worry about money you can can you continue to live where you love to live and not have to worry about money but you don't need that financial freedom until that bad situation comes up you don't need that financial freedom to live the life you love you're already living it it's just there as an insurance policy and allows you to live it no matte...
https://www.youtube.com/watch?v=UM_n1rdQJV4
Sometimes property investing can feel like an unachievable target and you have no idea what you're doing. Today I want to talk about how to make property investing an achievable goal and how we can make consistent steps towards our goals of investing in property and towards financial freedom.
Free Property Strategy Session
Advanced Suburb Research
0:00 - Introduction1:05 - How to make property investing achievable3:05 - Bite sized pieces of property4:44 - The skills you need to acquire13:04 - Focus on what's next for you16:32 - When you're in a rush you can make big mistakes20:08 - Invest into learning21:24 - Free property strategy session
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Debt Cycles by Ray Dalio
Transcription:
Ryan 0:00sometimes property investing can feel like a completely unachievable target it's so far in the future it's so hard to save a deposit you don't know what strategy to use or really when to start with property you have no idea what you're doing and it can get overwhelming so in today's episode i want to talk about how to make property investing an achievable goal and how we can break that down into bite sized pieces focus on that and make consistent and dedicated steps that move us towards our goals of investing in property and ultimately towards our goal of financial freedom or whatever your financial goals may be anyway hi i'm ryan from onproperty helping you on your journey to financial freedom and you may notice that i have the beautiful ocean in the background i've got the van working at the moment so i now have a mobile office which is really cool and i can work from anywhere so coming at you today from the beach side really excited to do that so let's talk about how to make this achievable and this can be applied to property it can be applied to shares it can actually be applied to really any sort of task or anything big that you want to achieve in your life
and this idea while i've been applying it in multiple areas of my life i kind of got this idea sparked by a recent podcast i listened to from kenny campbell from sugar mama talking about how she created the $1,000 project which i've done a book review on so i'll link up to that down below as well as i'll link up to this podcast episode i'm talking about but she was talking about how she was in a stage in her life where she just been through marriage breakdown she was in a bad financial situation in quite a lot of mortgage debt and really struggling to pay the bills and i really resonated with that because i know exactly how that feels i was in that position 18 months ago or even 12 months ago and have been consistently working my way out of that but she talked about how she did it by breaking out this mammoth task of actually getting on top of your finances into smaller goals and so while that's the premise of today's video i will be talking also about i guess little ways that you can approach each of these different tasks when it comes to property investing so you can actually get more out of it you can move forward faster you can make better investment decisions as well so the very premise the basics of it is let's actually look at this massive goal this overwhelming thing of investing in property and let's break it down into its smaller bite sized pieces and one of the cool things is is then you can focus on exactly where you're at now so property can be broken down into loads of different bite sized pieces and if you look at it i guess um what's it what's it called when you go in time in sequence oh my gosh am i my mind you know what i mean though from start to finish if you look at the start it really comes down to starting with you got to learn how to manage your personal finances and budget an...
https://www.youtube.com/watch?v=Y4WPGYeaAvY
Today I read through an article from Property Update about 15 habits that transformed 177 average people into self-made millionaires in just 12 years.
We read through it together, talk through some of the points and I think about the things I'm doing well and what I can do better.
Property Update Article
0:00 - Introduction1:19 - #1: Rich People Do Work That They Love3:28 - #2: Set Good Goals vs Bad Goals5:22 - #3: They Make Living Below Their Means a Daily Process7:51 - #4: They Don't Gamble9:28 - #5: They Read To Learn Everyday13:20 - #6: They Avoid Time Wasters13:58 - #7: They Control Their Words and Emotions14:41 - #8: They Dream-Set Before They Goal-Set17:00 #9: They Develop Relationships With Other Success-Minded Individuals17:48 #10: They Never Quit on a Dream18:40 #11: They Seek Out and Find Mentors20:59 #12: They Develop Multiple Streams of Income22:15 #13: They Are Open Minded and Positive22:46 #14: They Don't Give Into Their Fears and Doubles24:36 - #15: They Create Their Own Luck
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Transcription:
Ryan 0:00Today, I want to read through this article from Michael yarny, his property update website about 15 habits that transformed 177 average people into self made millionaires in just 12 years, I want to go through these 15 habits, see which ones of them that I'm working on. We'll talk about them as we go through. And then hopefully, we can learn something together, I will link up to this article in the description down below. This is a great website that has a lot of cool stuff on it. I've had a bunch of financial habits that have changed in my life over the last year going from near bankruptcy, to paying off more than $20,000 worth of debt, and setting myself up with about four or five months worth of buffer financially. If I donate any money, then I can survive for that long. So completely transformed myself over the last 12 months. But it's learning things like this and creating these little daily habits, that makes such a huge difference over the long term. In in a year from today, I want to be so much better off, I want to have all my debt paid off, I want to be saving my deposit, I want my business to be in a really good place. So it's always really good to learn. So here's 15 habits, we're not going to read through the whole article, because as you can see, it's quite long. But we're going to touch on some of the habits here and talk about it. So the first one, which is really interesting is that rich people do work that they love. This is something I've been talking about more and more. And it's getting rid of this idea that financial freedom is so we can retire early, we should be living a life that we love right now. And financial freedom just gives us the insurance policy gives us the security that we can continue to do what we love, no matter what happens to us financially. So it's really interesting that rich people do what they love. It says in the data 96% of the poor did not like what they did for a living 86 86% of the rich did like what they did, and 7% of the original loved what they did for a living, I actually would be right between like, like and love what I do at the moment, I can definitely expand upon it. And I'm excited for the future, probably in the like at the moment, moving up towards the love when I worked in the cafe. For the last year did not love that I didn't hate it. It was great. The people that I worked with were amazing, the customers were great, the job was pretty chill, and easy and like fun. But it just didn't stimulate me mentally, there was just there was no difficulty in it. Once you learn how to do everything, just kind of go through the day, it was good social job. But you know, I didn't love it.
https://www.youtube.com/watch?v=UE9gij5hGvo
Today I want to have a chilled out but thought provoking discussion about financial freedom, longevity and living to 150.
How does long life affect the way we look at our work, the way we approach financial freedom and how we live our lives?
0:00 - Introduction1:27 - Longevity and living to 1506:05 - The impact of living longer on our lives, money and financial freedom6:48 - Rich people live longer9:01 - We are now going to have a longer work life14:26 - Financial freedom now has a bigger payoff16:57 - You have more time for your properties to grow in value18:38 - Retirement doesn't sound necessary anymore21:02 - Financial freedom gives you the choices to live the life the way you want
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Transcription:
Ryan 0:00today i want to have a pretty chilled out but hopefully thought provoking discussion with you about financial freedom longevity and living to 150 now that may sound completely outrageous from the get go but if you stick with me through this video we're going to talk about some of the things that are happening in the field of longevity anti aging living longer how my generation so i'm in my early 30s now could potentially live to 120 130 150 and younger generations 150 could be an average lifespan for them there's a lot happening in this field at the moment i'm going to talk about that which will probably open your eyes up to that because a lot of people haven't really heard about this yet but also what are the implications that that could have on our investing on financial freedom and on our lives so i've been learning about this sort of stuff i'm excited to share it with you and then also leave a lot of resources for you if you want to go down the same rabbit hole that i went down to learn about more more about this and to discover more about this so i hope you'll join me for this discussion and this ride because this has completely changed my life completely change a lot of things that i do and completely change the way that i'm looking at financial freedom looking at investing and looking at my work so super interesting super riveting stuff so let's start with the longevity stuff i'm not a scientist so i'm not going to give you any health advice or anything like that what i will do is link out to some interviews that i listened to with dr david sinclair who is one of the leading geneticists in the field of longevity and living longer he's done a bunch of interviews which are listened to and i've actually read his book called lifespan which talks about how to live longer so i'll link out to all of that sort of stuff down below if you want to check out the free resources or check out his book you can but the idea here is that aging is a disease and it's something that is curable and treatable and something that we can definitely slow down but also something that we can potentially even reverse or stop altogether so the idea here is not to live to 150 and be decrepid and have be in our diapers not remember who we are a lot of us don't want to live in that sort of state and when we think about how long do we want to live a lot of us will say 8090 100 very few will say over 100 because we just don't see health beyond those years but a lot is happening in the field at the moment with medicine as well as things you can do in your life that not only will we be able to live longer be able to live up to 100 and beyond but we will actually be healthy and happy and vibrant at 100 and still enjoying life so the question is let's say that you felt as you do right now when you were 120 would you still want to die just because you're 120 no chances are you wouldn't chances are that you are loving life and wanting to live more of life so age is just a number and there's cha...
https://www.youtube.com/watch?v=flRcG5OSztQ
There are some real key financial practices that have allowed me to go from being nearly bankrupt to having paid of $22,000 of debt and build up a 4-5 month buffer fund.
Here are 7 financial practices that are really changing my life.
0:00 - Introduction1:33 - Van update2:17 - #1: Earn More Money4:47 - #2: Pay Myself First6:25 - #3: Building Up a Buffer Fund8:41 - #4: Finding a Budget That Works For Me10:53 - #5: Reducing My Expenses15:17 - #6: Living a Minimalistic Life17:01 - #7: Loving The Work That I Do20:00 - Financial Freedom Is No Longer THE Goal
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Transcription:
Ryan 0:00my financial situation has changed dramatically in the last 12 months. And there's some real key financial practices that I've been doing that have really helped me along this transformation. So 12 months ago, I was looking down the barrel of a potential bankruptcy thinking, I don't actually have enough money to pay the bills that I need to pay. I remember having a freakout moment, I was either in June or July of 2019, being like, I don't know what to do.
Luckily,
I had some income coming in, I was able to delay some payments didn't have to go through bankruptcy. But in the last 12 months, I've been able to pay off $22,000 worth of debt, and actually build up a four to five month buffer fund for myself as well. So I actually have enough money to get me through the next four or five months. So very drastic situation to Okay, I don't know how to pay these bills tomorrow. And I may go bankrupt too. Now, I paid off a bunch of debt. And I've got this buffer fund. And I'm looking like I'm in a position where I if things go really well, which looked they probably won't go as well as I'd hoped I could potentially pay off my debt by the end of the year, but probably take a little bit longer than that. So big transformation in the last 12 months. And there's some key financial things that I've been doing that have helped me along that transformation. So today, as I sit in the van, and as I have a morning coffee, I want to share that with you. Before I do, let me just show you what I've been up to. And I did a video a little while back and the van was a complete mess. And you can see that now I've kind of really set it up the bed is made, I've got my standing desk here. So I can just kind of stand and work on my laptop here. Or I can actually pull up my esci with a seat on it and actually hang out on that the battery for the van is charging at the moment, it's been dead for a while. So it should be good to drive around. And I should be able to actually work on the beach in here very soon. So I'm very excited about that.
So you may see me filming on location pretty soon. But I want to share these financial things with you. And there's seven of them. The first one, and I think it's the most important and it's made the biggest change. And that's actually earn more money and focus on earning more money. 12 months ago, I was in a situation where I was not earning enough money to pay for private school to pay for my debt to pay for my rent. and reducing expenses was a big part of that my kids are no longer in private school. I'm currently not paying rent at the moment, but actually building up my income and growing my income has been what's allowed me to pay off my debt. And allow me to build up that buffer fund. So the way that I approach it is I run my own online business. But each and every day, I'm doing actions that are going to actually increase my income in the long run. So rather than just working for the income that I'm going to earn for the day, the work that I do is going to increase my income in the long term. So whether that be content for on property, or whether it be articles for other websites, all the work that I do generate long term income and build up my income over time.
https://www.youtube.com/watch?v=7TTsnQbx52k
So much has happened in my life to affect my finances over the last 5 years and even the last 12 months. But I've been working behind the scenes on my financial gameplan and I'm excited to share it with you today.
Here's exactly how I plan to grow my business, get out of debt, achieve financial freedom and invest in property for that long term financial freedom.
0:00 - Introduction0:53 - The way I earn money is different to most people1:19 - My financial history5:44 - My business game plan11:58 - Increasing my income in a passive way13:52 - My financial goals15:30 - Living the life you want now, but investing for the long term17:35 - My property investment strategy19:55 - Your financial game plan
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Transcription:
Ryan 0:00so much has happened in my life that has affected my finances over the last five years and i'm in a situation now where my finances are growing i'm getting out of debt and in this episode i want to talk about my personal financial gameplan how i'm planning and getting out of debt how i'm planning on getting into a position to invest and helen growing my business and also kind of explain to you why i'm in the position that i'm in today where i don't have a lot of cash flow coming in and so there's things that i can't necessarily do like buy a new car but how i'm doing the word today that's going to actually set me up for my future so i'm really excited to share this with you i hope that you find it interesting and glean something from it yourself that maybe you can add into your own financial gameplan and how you're going to move forward i will say at the start i am not a financial advisor so this is not financial advice but be i would also say that the way that i earn money is very different to the way most people earn money as an online entrepreneur as a content creator the way i earn money is a bit strange and also a bit delayed and so we'll get into that and that's part of the reason why i'm in the position that i'm in today but before we jump into the game plan i do want to talk through a bit of my history and a bit of what happened so if we look back in you know 2013 so seven or eight years ago now i was a pharmaceutical rep earning six figures per year with a free car and free petrol on that car i left that in 2013 to actually move into state we moved my family my family moved up to queensland to the gold coast so i quit that job to go full time in my online business which at the time was only earning something around 500 to $1,000 per month so you're looking at like six to 12 grand per year that it was earning and left a six figure job for that so moved into that and then worked in that full time for a few years and it was in november 2016 that i achieved what i call pseudo financial freedom so this was me being in a position where i didn't have to work anymore my business was earning enough income passively that i hardly had to work i would work a few hours per week and generally it would be when ben would call me up and say let's record a video we need to do some work or when i feel passionate about it so november 2016 i achieved pseudo financial freedom and i knew that at the time if i didn't work it will only last few years and then i would have to work again and actually it was two years almost to the day november 2018 that i lost my financial freedom so in november i had a downturn in my business i was also going through a separation at the time so i have actually increased my expenses i was paying for two houses and things like that so this is where my debt escalated and i got into a lot of debt in a short period of time so that was pretty rough i was in a pretty bad financial position in march of 2019 i felt stable again and i'd worked hard on my business from november until march and i thought okay i got it in a good place but then in june 2...
https://www.youtube.com/watch?v=CLDi5tZO26I
How does tax work with positive cash flow properties and how is it possible to have a positive cash flow property and not pay any tax on the income.
While I'm not an financial advisor I explain the main concepts behind how this works in todays video.
In short:
Rental income - expenses - depreciation = profit/loss
Profit or loss is then added or subtracted to your taxable income.
0:00 - Introduction0:48 - What is positive cash flow?1:20 - How does tax on positive cash flow work2:48 - How depreciation affects the tax you pay
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https://www.youtube.com/watch?v=-GUbiE3ieDQ
Let's start to explore the concept of living a conscious life that makes you fully content and fully happy on the way to your financial freedom.
0:00 - Introduction0:19 - Financial freedom at 28, a bit of my story4:18 - Not living life on autopilot7:18 - What has worked for me so far12:18 - Our Wildly Adventurous Life15:55 - Don't pin your hopes on financial freedom giving you happiness
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Transcription:
Ryan 0:00usually on this channel we talk about property investing personal finance achieving financial freedom all that good sort of stuff but in this episode i want to do something different and start to explore the concept of actually living a conscious life and living a life that makes you fully content and fully happy and the reason that i want to explore this in more detail is that i achieved financial freedom at the age of 28 or what i call pseudo financial freedom my businesses were earning enough money without me working that i didn't need to work and so i spent probably about two years from 28 to 30 where i hardly worked at all and i was not rich in terms of the fact of i had a private jet and fancy cars not i did not have a fancy car at all but i did have a decent house i lived one straight back from the beach you could walk to the beach didn't have to work so drive the kids to school then we'd go out for coffee and go to the beach and just kind of spend my days doing that do a bit of work when i felt like it and felt inspired to or when ben would call me up and say ryan we need to record some stuff i'd be like okay so i achieved that at 28 and i realized that financial freedom doesn't make you happy and that was a big shock to me and a big shock to my system because for my life i had been pursuing this goal of financial freedom and while i didn't consciously think okay financial freedom dang i'm going to be happy i think in the back in my mind or subconsciously that's what i believed because when i achieved financial freedom and i wasn't happy i was i was quite shocked about that and so for two years i explored a bunch of different things i hardly worked and explored okay what can make me happy what can make me feel fulfilled and tried a bunch of different things and eventually at least reached a place where i wasn't depressed anymore i have suffered with depression anxiety eating disorders throughout my life and so i was so grateful for that time to reach a place where i'm like okay i kind of have an idea of how to manage my mental illness and not feel depressed anymore or not feel like i have an eating disorder anymore and so i've got to that so that was good but now i'm not financially free anymore i ended up getting myself into a bunch of debt went through a separation business went through a downturn at the same time so expenses jacked up income dropped dramatically built up debt pretty quickly in a period of a couple of months and i'm now climbing my way out of that so i'm no longer financially free and i'm working towards financial freedom again and i still think financial freedom is valuable and important but i feel what's more important is actually living that conscious life and being happy in the life that you have and it's something that's not really talked about by a lot of people most people will talk about okay here's how you get rich here's how you build wealth and we do talk about that on this channel we talk about the strategies and how you can achieve it and that's important financial freedom gives you choices which is great and you want to move towards that and if you're looking for property tips there's hundreds on the channel but what's not really talked about by anyone is how do we actually achieve happiness on our journey towards that and i guess it is sorted out by people online but it's something that i st...
https://www.youtube.com/watch?v=siOaFA4xPkQ
You can use property investment as an insurance policy for your retirement and for the life that you want. This simple way of investing can set you up and allow you to live your best life sooner rather than later.
Book a Free Property Strategy Session
0:00 - Introduction0:33 - 2 properties to financial freedom2:15 - How is this an insurance policy for our future?6:50 - Achieving financial freedom and an early retirement9:29 - This insurance policy allows you to change your life BEFORE you're financially free
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https://www.youtube.com/watch?v=GM8rSBbnhTw
What exactly is positive cash flow when it comes to property investing? Why is it so powerful and how can it help you achieve financial freedom?
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0:00 - Introduction0:20 - What is positive cash flow2:10 - Looking at the numbers5:35 - What is positive cash flow summary7:04 - Why positive cash flow is so powerful
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What exactly is negative gearing? How does it work and how can you actually make money from an investment property that is losing you money to hold?
https://www.youtube.com/watch?v=KoJBfZiERvM
Being in debt can be extremely stressful and emotional and it can be pretty tough to deal with. In today's episode we are going to talk about how to emotionally deal with debt and what are some tips I can give you.
0:00 - Introduction0:50 - For me I started just living in denial1:35 - #1: Admit that you stuffed up3:18 - #2: Don't feel shame about those mistakes4:13 - #3: Write down ALL of your debts and minimum repayments5:05 - #4: Let yourself be overwhelmed6:05 - #5: Think about what you're afraid of losing8:09 - #6: Organise a short term budget9:16 - #7: Take the long view10:19 - #8: Have the hard conversations10:44 - #9: Talk to people you trust and who won't judge you12:57 - #10: Look to expand your income and your life15:03 - #11: Recognise you will have bad moments and bad days15:52 - #12: Accept that you're going to have to sacrifice things16:55 - #13: Find ways to make your life amazing without a lot of money18:38 - #14: Spend A LOT of time educating yourself19:42 - You've got this! You can do this!
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Transcription:
Ryan 0:00being in debt can be extremely stressful and extremely emotional and it can be pretty tough to deal with it i've personally been in a lot of debt i'm still in debt but i kind of feel like i'm on top of it now but in today's episode i'm gonna walk down to my van because it's just it's a comforting space and i love being down there and we're going to talk about okay how did i actually emotionally deal with being in debt and what sort of tips can i give you i do want to say that this is not a video about dealing with debt collectors i don't have any experience with that so i'll link out to a video down below if that's you and also i'm not a qualified psychologist or anything like that i've had depression and anxiety in my own life but if you need professional help please go ahead and seek it so here we are at the van let's go ahead and open it up but how do you deal with the emotional stress of debt for me to start with i just lived in denial i did a couple months where i was just in complete denial about my debt in case you're wondering what's in this box it's like all my notes for this episode as well as some filming gear so when we're in here we can set ourselves up pretty well but i absolutely love this fan hi it's not in the best condition at the moment but i'd love to fix it up hopefully in future videos we can go on some adventures and actually film you know add some cool places in this van so i think the first thing and i'll go ahead and sit down or set up this tripod in a minute but the first thing is actually admitting that you stuffed up admitting that you've done wrong admitting that your past self you weren't as ideal of a human as you probably should have been you made some dumb choices you spent money in ways that you shouldn't have you got yourself into debt you over committed and now you're in a difficult situation and i think admitting that okay i've actually made mistakes to get myself to this point but the person that made those mistakes that that was passed me that was passed ryan that did that and that ryan didn't know what he knows today i didn't know that it would lead me to this situation or if i did i didn't have the ability and the willpower to make a better decision but i'm learning and i'm getting better and i can't completely judge myself what i did yes
i did wrong yes i should have done better but that's done that's in the past now all i can focus on now is okay what can i actually do to move myself forward and to get better and so admitting that you've made mistakes in the past i think is a really great way to emotionally deal with it but then also putting that on your past self and saying that was who i used to be that was previous decisions that i've made i now have a decision of how i'm g...
https://www.youtube.com/watch?v=EQ8WLNAMNwY
Debt can cripple your finances and your life, but if you find yourself in a debt hole what can you do to get out of it?
I personally found myself in a lot of debt, experienced the overwhelm and had to claw my way out of it. Here are some of the things that helped me.
Free budget template
0:00 - Introduction1:05 - Being in debt is super common1:42 - Admit that you messed up3:39 - Write down all of your debts4:45 - Let the overwhelm wash over you5:26 - Create a budget where your debt payments are automatic3s7:16 - You may need to take drastic action8:42 - Stop yourself getting into more debt9:11 - Accept generosity but don't expect it10:39 - Bring people around you who will support you paying off your debt11:39 - Focus on earning more money13:48 - Build up a buffer15:22 - Pay off those debts in a way that works for you17:32 - Summary
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Transcription:
Ryan 0:00Debt can be extremely crippling, it can cripple your life obviously cripple your finances, it can cripple your emotions and just make everything really hard to deal with. And it can be really hard to get out of that debt hole. Last year after a separation and relocation into state, I found myself in quite a bit of debt and in my own debt hole. And it really took me a year to 18 months to really get on top of that debt. And to get out of that debt hole and feel like okay, I'm on top of this, now, I can see that this is going to be paid off in the future. So I'm not completely out of debt yet. But I'm out of the worst of the situation where it's like, this is just, I'm completely in this hole, I don't know how I'm going to get out of it. I don't know how I'm going to afford to pay this debt and continue to live my life and kind of come through that journey, and come out of it. And hopefully, you can learn from some of my experiences. And what I did, hey, I'm Ryan from OnProperty, helping you on your journey to financial freedom. And let me just first say that being in debt happens to so many different people. So it's nothing to be ashamed of. And if you're listening to this, and you're in debt, and you want to get out of it, then good for you. Because most people won't actually sit down and watch something like this or go through the steps to get out of it. They'll just live in it for the rest of their lives. So I applaud you for stepping up to the plate, and for actually trying to get out of your debt hole. So how can we do it, I will say this is not financial advice. I'm not a financial advisor. This is for general educational purposes only. And something that helps me, I think the first thing that is really important to do, or at least was important for me, is to just admit that you fucked up, like admit that you did something wrong and that your past self didn't make the greatest decisions to put you in the best position. Now that might be you were just frivolous with your money and you were being silly, it might be that you didn't have the foresight that you have. Now, it might be that things happen that you didn't predict or didn't prepare for. For me, I was financially free through my businesses, or I call pseudo financial freedom. My businesses were kind of earning enough money that I didn't really need to work much. But I live right on the line, or maybe a bit over it. And I didn't build any buffers into my life. And then what happened was I went through a separation business went through a downturn. So my expenses went up significantly, at the time, my income dropped, and there was all of a sudden this big gap. And really quickly, I went into a decent amount of debt, a significant amount of debt for me. And so, you know, that kind of happened. And there was mistakes that past Ryan made. that put me in that position,
https://www.youtube.com/watch?v=UIqd5HXwiyc
Property investing can be overwhelming and some strategies are so complex and difficult it's hard to work out what steps to take. So today I want to share with you a really simple property investing strategy that just seems to work.
Book a free property strategy session
Downloadable PDF
0:00 - Introduction1:24 - 2 Properties to Financial Freedom1:57 - What exactly is this strategy?5:11 - What makes this strategy so powerful?7:40 - How this strategy lowers your risk9:20 - This gives you a clear path to financial freedom11:20 - You can adjust this strategy to suit your needs12:45 - This is not a get rich quick strategy18:10 - A simple property investment strategy that just seems to work
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2 Properties To Financial Freedom
Transcription:
Ryan 0:00property investing can be overwhelming there's so many different strategies that it can choose from and there can be these larger than life gurus who are going to teach you through their complex method how to achieve greatness in property but often it's so complicated and so difficult that's really hard for you to work out okay what steps do i need to take and how is this going to lead to financial freedom or whatever it is that your goals are so today i want to take the time to share with you a really simple property investment strategy that just seems to work it's simple enough that people can understand it that people know what their next steps are that they can implement it and that they can actually move towards financial freedom and even more exciting is that this strategy is actually changing people's lives in the short term as well so they're able to gain choices in their life maybe not for financial freedom but they're able to change their lives in significant ways and we'll talk about some of that stuff as well so i hope that you're excited to hear more about this strategy hi i'm ryan from onproperty helping you on your journey to financial freedom and a lot of you who have been following me for years will already know about the two property to financial freedom strategy and for some of you it might be the first time hearing a strategy like this and two properties to financial freedom is just that simple it's purchasing two properties that ultimately delivers you financial freedom but the really cool thing about this strategy is that it's not convoluted it's really simple but it can also be flexed and changed and adjusted based on what your goals are so let's talk through this strategy let's talk through why it's so powerful and let's help you see whether or not this is something that you would like to pursue in your life and help you work out what your next steps are so what exactly is this strategy why is it so simple why is it working so well the strategy is a mixture of cash flow and capital growth so capital growth is growth in value of the property or buying in high quality areas where the property is going to go up in value as well as positive cash flow the property you see getting good rental income from your property which means you're getting more rental income then you have an expenses on the property so this means you purchase the property and when you're renting it out the rent that you're receiving from your tenants is paying for all of the interest on the mortgage and paying for all the expenses on the property so it's a mixture of the two and actually what's really interesting about this strategy is you don't actually need the capital growth element of it we want capital growth because why the hell not right if you can get it you want to get it but you also want that stability that we know that this property is going to be rented well into the future because we may even keep this property for our lifetime and this property may deliver us financial freedom so the strategy what is it it's really simple you go out and you purchase a property purchase within this property b...
https://www.youtube.com/watch?v=HRcfnbVEhTw
How many properties do you actually need to be financially free and how do you map out from where you're at now to actually being financially free?
Book a free property strategy session
2 Properties To Financial Freedom Strategy
0:00 - Introduction0:50 - The two ways to work it out1:06 - The mortgage-free option4:43 - The positive cash flow option7:50 - How many properties do YOU need
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https://www.youtube.com/watch?v=I8x-_Fzcu3k
I've tried so many different budgets and ways of budgeting over the years, none of which work. Eventually with I created what I can The 15 Minute Budget as an easy way to create a budget and automate your finances and your savings.
ING Special Offer
Free 15 Minute Budget Template
0:00 - Introduction0:34 - What is The 15 Minute Budget3:48 - Bank accounts you need to make this work5:04 - Going through the 15 Minute Budget Template12:28 - Setting up automations15:43 - Managing your budget weekly16:41 - Setting up automatic transfers18:44 - What do you do when a bill is due20:11 - How to use this budget to pay off debt21:24 - Why this works so well for me22:31 - The 15 Minute Budget in a Nutshell
Transcription:
Ryan 0:00I have tried so many different budgets and way of budgeting in the past, it's not funny at all, without much success either tried everything from putting cash in envelopes to using iPhone apps to daily tracking my money to give myself a daily amount, I tried so many different things. And all of them just I really struggled and failed to the point where I just didn't run a budget. And it wasn't until I started getting serious about my finances, that I decided I need to work out a way that works for me. And with the help of the Barefoot investor, in mixing some of my own ideas, I created what I call the 15 minute budget. Now, this is a budgeting technique where you can sit down and in a matter of about 15 minutes, you can kind of do a reset of your life, and quickly see how you're going in terms of income, what your regular expenses are, how much you know, you're paying in Internet and Phone and rent and things like that. And then you can look at, okay, how much money do I have leftover for spending each week, and you can give yourself a regular amount of spending money. And this is your focus. So the 15 minute budget is a sit down so you can look at this. But then you can also automate all of this sort of stuff. So your income comes in, then you automatically organize your regular expenses to be paid. So things like your rent, things like insurances phone bill, even bigger things that you have to pay for annually, like your car registration, these aren't going to be a shock to you anymore, because you're going to automate saving for those so that when your car radio comes up, and you've got to pay one or $2,000 for that, that money is already put aside, when your gas bill or your electricity comes up every quarter, you're gonna have money put aside for that. So we're going to automate everything. And then we're also going to give ourselves a set amount of money each week to live off. Well, you can do fortnightly or monthly if you prefer, but we're going to give ourselves a set amount of money each week to live off. That's our spending or our living money. And that's where our focus goes. So it's a sit down, it's a let's get clear bird's eye view of where I'm at. Let's then go ahead and organize and automate everything. And then all I have to focus on is my spending money each week. So my regular expenses, all paid for my debt reduction, all paid for my saving for my house deposit, all automatically paid for this will do everything automatically. And all I have to focus on is each week, I've got a set amount of money, let's say I've got $400 per week to spend. However, I like, okay, I can spend that on petrol, I
can spend that on going out, I can spend that on exciting things for my kids, I can spend that on school fees or shoes for everyone that week, how I spend this money per week is up to me. So this budget, I find within 15 minutes gives me complete clarity over my situation and where I'm at and what money I have to work with. But then this technique of allocating myself spending money, and automating everything else gives me flexibility in my life, I've got certainty that my debts are being paid, that I'm saving money,
https://www.youtube.com/watch?v=roWeaTM9S3g
How can property pay for itself, pay itself off and then ultimately deliver you financial freedom?
Book in a Free Property Strategy Session
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The 2 Year Strategy
2 Properties To Financial Freedom
Transcription:
Ryan 0:00Hey, are you amazing investors out there? I recently had a really great question from someone on my YouTube channel, asking me a bit more about the two year strategy or the two properties to financial freedom strategy. And asking what is the difference between this and just buying property and being a slave to your job and having to pay it off over 25 years? How can property actually pay for itself? And how can property actually pay itself off. And this is a concept that I guess really clicked in my mind back when I was a teenager. And I could see the long term potential of property to deliver financial freedom and deliver the life that I want. I got really passionate about positive cash flow property. And I guess I haven't really stopped since. And reading Robert Kiyosaki his books like Rich Dad, Poor Dad, really ingrained this into me. But I understand that not everyone can see this, not everyone understands this. So I'm hopeful that in today's episode, I can click something in your brain, so that you can start to understand, I guess, the dynamics behind how property can pay for itself and generate positive cash flow, and how it can pay itself off. So the way most people invest in Australia is that they'll purchase a property, maybe a single income home, or maybe they'll purchase a unit or something like that. And they get some money coming in in terms of rental income. So let's just write rent here.
So they get some rental income coming in. But then they have money going out in terms of their expenses, we'll just write XP for expenses. And so expenses includes everything like your mortgage, your property management fees, any vacancies you have on the property, maintenance on the property council rates, water, insurances, there's so many things to think about. Now, the way most people invest, it's called negative gearing. And these expenses are much larger. And so we'll do a large circle, then the rent. And so what that means is that you use the rent to pay for some of the expenses. But then there's still a good chunk of the expenses left over. So let's pretend that this section here is the expenses left over. And now you still need to pay those expenses, that might be your mortgage, it might be some maintenance on the property. And in order to pay those expenses, you're going to have to have a job or an income source of your own, I just draw a tie there, you're going to have to have an income source of your own to pay those expenses. And to keep that property going. This continues until that property is paid off completely. In which case, once it's paid off completely, because you don't have a mortgage anymore, you've now got smaller expenses, and likely your rents going up over time as well. So your rent is now bigger than your expenses. And if we cut the rent in half, and let's say this bit is the bit left over, well, that actually go ahead and goes into your pocket. Okay? That is the worst I've ever drawn in my life, what's sort of like a happy happy face because you get some passive income coming in. So that's kind of the way most people do it negative gearing, but it takes a long time in order to get to this situation where your mortgage is paid off. And you can start living off the rental income minus the little expenses you have left. So let's actually put some numbers behind this and have a look at it. So I'm going to go over the property tools.com.au, which is a calculator that I created years ago. And you can get access to it too, if you want for a small monthly fee. So that's a property tools.com.au. And let's use an example here, let's say we purchase a property for let's call it $500,000, or a unit,
https://www.youtube.com/watch?v=6_c7AHMr16U
Suburb hot spotting is a really popular and trending topic. People want to know where are the best suburbs to invest. However, without a clear vision and strategy suburb hotspotting can actually be useless to most people and potentially even detrimental.
Book a Free Property Investment Strategy
How To Research Suburbs
0:00 - Introductions0:55 - What are the problems with suburb hot spotting1:55 - Do suburb hotspots carry extra risks?2:47 - You must place context around the hot spot4:28 - You don't need the hottest suburb to have success in property5:10 - Hot spot suburbs might not be the best long term investment6:38 - How to use suburb hot spots9:24 - Get your strategy first!
Transcription:
Ryan 0:00australia's hottest 100 suburbs the 20 best suburbs to invest in this year the 10 hottest suburbs in sydney suburb hot spotting is a really popular and trending topic people love ring magazines with the suburbs in a blog post that highlight the top suburbs people want to see what the best servers are and they want to know what suburbs should i invest in however when you don't have a clear vision and you don't have a clear property investment strategy suburb hotspot is generally useless to most people and can even be beyond useless and actually detrimental to your long term property success if you're just focusing on this so in this episode i want to talk to you about southern hot spotting the pros and cons of it and how you can avoid the mistakes and also use it to your advantage so one of the problems with how the southern hotspotting really there's no like problems per se you got some issues with other hotspotting that that based on historical data in that these are the suburbs that have boomed the most in the last 12 months or three months or whatever term it is and so those servers have already gone through massive growth cycles by the time that you actually learn about it so while they may have been the hottest suburbs they may not be any more or suburb hotspotting is predictions on what is expected to happen in the future and those predictions sometimes come true and sometimes don't so you never know if it's actually going to be the hottest suburb or not until you actually wait 12 months or a few years and to see if it actually outperformed the other suburbs in australia so there's inherent problems and risks in that aspect but generally speaking i don't see major problems with sub hotspotting in that they add massive amounts of risk or anything you can find a server that is predicted by all the analysts to do really well over the next few years chances are that's not going to be one of the worst performing suburbs in australia unless you're looking at something like a mining town or some really small town that's getting a massive growth boom because of a mine that's opened up in the area yeah high level risks there just ignore those other hotspots for sure but if we're talking about metro markets here that have long term growth potential there generally speaking looking at sub hotspotting those suburbs may do well they may do average they may do below average but if they've made to the suburb hotspot the chances of them being absolute complete duds are a lot smaller than if you just pick a random suburb in australia so in some ways they can minimize your risk there but the problem that i see with a lot of people investing the problem that i guess i used to have in the past is that there's no context placed on the southern hotspotting it's looking just a capital growth and capital growth alone and generally it's covered growth within a short time period and so it doesn't necessarily think about you and doesn't think about hey what's your strategy why are you investing in property what is it that you're actually trying to achieve financially through your investment properties these are the best hot suburbs for you now it's not like that it's just it's just ...
https://www.youtube.com/watch?v=BN8nKj-z7qo
What does it feel like to have financial freedom and then all of a sudden lose it, be in debt and have to work your way out of it?
0:00 - Introduction0:43 - How I got my financial freedom2:30 - Financial freedom didn't make me happy3:20 - We bought a van and moved to Noosa4:25 - What I did with my financial freedom6:08 - How I lost my financial freedom7:33 - What happened when I lost my financial freedom8:15 - What did it feel like to lose financial freedom9:07 - Struggling to pay my bills11:30 - Building up my income again14:16 - How does it feel now?15:28 - What did I learn from losing financial freedom16:30 - My goals now19:05 - Do I regret losing financial freedom?
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Transcription:
Ryan 0:00what does it feel like to lose financial freedom so to have financial freedom where you don't have to work anymore you can do what you want with your time and then to all of a sudden lose that be in debt and have to work your way out of it again that's my story and that's exactly what happened to me and what it feels like to lose financial freedom is not a story that you hear from many people
so i'm excited to share with you a bit of that today hi i'm ryan from onproperty helping you and your journey to financial freedom and i think with this story we need to start with how i became financially free how i lost my financial freedom what it felt like to lose it and where i am now so let's start with how i got my financial freedom in the first place my financial freedom i always call it pseudo financial freedom because i was ever financially free in the way that property gives you where you're financially free basically for the rest of your life barring unforeseen circumstances i got my financial freedom through online passive income or through my online businesses so i had websites set up that were had content on them that were generating traffic and revenue and generating enough revenue that i didn't really need to work anymore and i actually made a video when i first realized that i'm kind of financially free and i don't know how that feels and in that video i actually said i'm in the position where if i don't work for a couple of years then the businesses will decline and i won't be financially free anymore and it's funny because i watched it yesterday or the day before and i was like that is actually a prediction of the next couple of years of my life so that was me at 28 we then bought this van which i'm sitting in now as you can see it's a bit like it's not really set up to be used at the moment it's kind of just got storage stuff in it but i came down here because of this story and because i thought what better place to tell it than here and also just being in here is inspiring me to do this app and to transform this into something that i can use again we achieved financial freedom through online businesses took me five years of full time work in order to get to that point and then it took me another seven years of part time work before that to get to that point so i started at 1828 okay so maybe i got my years wrong then but yeah sorry 18 and by 28 i was financially free through my online business realize at that time that i wasn't happy i actually entered a phase of a pretty deep and dark depression now i've struggled with depression on and off throughout my life but when i hit financial freedom and i'd achieved this goal that was driving my life forward this is a goal that i set when i was a teenager that i wanted to be financially free i wanted to be rich by the time that i was 30 and so i'd set this goal i've been working towards this goal i'd quit a high paying pharmaceutical job to grow my business to pursue this goal and obviously life happens in the time you know i had a great relationship with my wife at the time we had be...
https://www.youtube.com/watch?v=SJcO8k4lCgo
Should you use a big deposit of 20%+ when investing in property or a smaller deposit of around 5 or 10%? There are pros and cons to each which we look at in today's episode.
Property Tools
Book a Free Property Strategy
0:00 - Introduction0:39 - What everyone else says you should do1:25 - The 4 major considerations1:56 - 1. Lenders Mortgage Insurance3:51 - 2. Market Timing (Getting Into The Market Sooner)5:35 - 3. Risk Profile8:15 - 4. Cashflow11:33 - It's not a clear cut decision12:46 - What is your strategy/end goal?
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Transcription:
Ryan 0:00let's talk deposits when you're investing in a property should you use a big deposit of 20% or more so you don't have to pay lenders mortgage insurance or should use a smaller deposit somewhere around 5% or 10% so that you can get into the market quicker and maybe expand your property portfolio quicker as well different people say different things but it's ultimately up to you to assess what's going to be best for your situation and your risk profile so in this video we're going to be talking about big deposits for a small deposit what are the pros and cons of each so hey i'm ryan from onproperty helping you and your journey to financial freedom and as definitely people out there that are like no matter what the circumstances you should always use a 20% deposit to avoid lenders mortgage insurance so you don't have to pay that and so i understand that that that makes a lot of sense and we will talk about that more but then you've got people on the other side that say you should use the smallest deposit possible so that you've then got more money to invest in properties also you can get into the market quicker and get capital growth faster and so we'll talk about that as well but i'm just seeing people out there and say you should definitely do this or you should definitely do this no you should definitely do anything ultimately it comes down to you and everyone's goals and everyone's risk profiles and what everyone wants to do is different so in this video we're going to be talking about some of the different pros and cons of each and so you can actually look at yourself assess yourself and decide okay where do i sit on the spectrum and what do i want to do so let's look at some of the major things so the major things we're going to look at firstly going to be lenders mortgage insurance and talk about that because that can be a big cost we're going to talk about cash flow and how the size of your deposit affects your cash flow we're also going to talk about timing the market and we're gonna talk about your risk profile as well so let's start by talking about lenders mortgage insurance now i've done a full video on exactly what this is a couple of years back so i'll link up to that down below but really simply this is insurance that if you don't have a large enough deposit and usually that's 20% on residential property investments if you don't have that large amount of margin off deposit the banks are taking an extra risk giving you a loan and they want insurance to cover that risk in case you have to sell the property and the markets going down and they lose money just to put a disclaimer out there i'm not a mortgage broker or insurance broker but they they charge you this insurance and that's an extra fee that you have to pay either for paid upfront or often it's added on to your loan and so that's an extra fee that you paid to the banks and ensures them against the extra risk they're taking on us then the insurance isn't necessarily for you it's for them so a lot of people see that as a last costs or something that you have to pay that you don't really see any major benefit from so this is why people often recommend that you save at least a 20% deposit i know with building granny flats you ...
https://www.youtube.com/watch?v=2G1Va7vM0kI
Saving money can be really difficult and boring and having delay the gratification can be tough. How can you actually enjoy that saving process and not be deterred or disillusioned by it?
Book a Free Property Strategy Session
Follow me on instagram
Follow On Property on Instagram
0:00 - Introduction1:19 - The 2 ways to approach enjoying saving money1:54 - Having a vision is so important4:42 - Compete against yourself to make saving more fun6:04 - Automating the savings process9:55 - Making more money11:00 - Making your life awesome13:30 - It's not easy to create a good life
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Transcription:
Ryan 0:00saving money can be really difficult and really boring and just to be able to delay the gratification can be so tough for so many people and it's why so few people actually get to the point of saving a deposit and investing in property is that it's hard to delay that gratification for so long when you've got money in your bank account and you've got enough money to pay cash to buy the range rover that you've always wanted but you're saving that for a property how can you actually enjoy that saving process and not be you know deterred or not be disillusioned by it and so i want to thank chloe for this idea for this episode so i mean her just friends on instagram she she found me and we've just been chatting a little bit and i was like i don't know what to record about she's like well what about this so thanks for watching and if you you want to be friends to me on instagram just follow me at ryan mclean reflectinsight ma c li na you can request to follow me over there that's just more my personal space but yeah she was like how do we actually enjoy delaying the gratification how do we enjoy the savings process and to be honest it's quite difficult and i think having a different perspective can be really helpful so there's two ways that we can approach this and both i think are really important the first is like how do we actually enjoy the saving process how do we set up the goals to do that but then i think the most more important thing is actually just getting on with your life so automating your savings and getting on with your life so let's talk about first like setting those goals and enjoying that and then we'll talk about the automation side which i think is probably even more important and so when it comes to saving and setting those goals i think first and foremost having a vision of your life and having a vision of what you want is really important so you want to have the goal of say i want to save $50,000 or i want to say $100,000 for a property that's a good goal to have and a good milestone but i think you need to look even further beyond that and you need to see in detail and you need to feel it in yourself the life that you're going to have once you've achieved this and this is part of why a strategy is so important if you know that if i take these steps it's going to lead to this outcome or this vision that i have for my life then it's so much easier to take those steps because you can see it clearly in your mind and i guess that's one of my superpowers in business is that i can see the end and i know the steps i need to take and so i can take them and other people think why are you doing that you're not getting to where you want to go you're not earning a lot of money now but i know that taking these steps now leads towards a vision i have and so i can take them even without seeing immediate results because i'm focused on that vision and so having a clear strategy is really important in that i talked about the two year strategy on this channel with ben everingham where in two years you purchased two properties build two granny flats and you basically set up your foundation for financial freedom those properties that go and pay themselves off and achieve fina...
https://www.youtube.com/watch?v=o2VAJlOe_9s
There is a major missing piece in most people's property investment journey, it was certainly a major missing piece in my investment journey.
This concept and this idea can actually completely change your life and change many years of your life for the better.
0:00 - Introduction1:12 - My journey towards financial freedom3:12 - The missing piece on my financial freedom journey7:20 - Our focus on the destination is warped8:55 - These are years of your life you won't get back11:17 - The life we want and the goals we have change as we change14:25 - Enjoy the journey16:30 - The missing piece is enjoying the journey
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Transcription:
Ryan 0:00good morning all you amazing people out there in today's video i want to talk about what i think is a major missing piece and people's property investment journey their investment journey in general it was a major missing piece in my investment journey and meant that when i did achieve financial freedom i was super lost him super depressed at the time and it's something that i think can this concept and this idea could actually completely change your life and change many years of your life for the better so i'm kind of getting goosebumps i'm excited to share this with you also be excited to drink my coffee so the decision between do i keep speaking to the camera do i have a sip that's gonna be going on throughout this video but that's okay this is this is delicious coffee i made for myself this morning but this concept is super powerful and i learned it through my own life but i also learned it from having amazing people in my life and this concept i got to give massive props a massive thanks to ben everingham buyer's agent from pumped on property because it's kind of came out in a video that we were recording together but to talk about this we kind of need to go back and look at my journey towards financial freedom and the emotional roller coaster that that was so if we go back four or five years then i'm working in my house full time online on my online business and trying to build it up to the point where it's self sustaining and i don't need to work anymore so basically trying to create a shortcut to financial freedom and so i was working on that doing long hours homeschooling my daughter at the time as well and just kind of juggling family life working really hard on that eventually it got to the point where the business was earning enough money where i didn't really need to work i needed to kind of maintain things but i didn't need to be actively working 40 plus hours a week on this business i could effectively drop into about four hours a week or less if i wanted to more if i wanted to and so i reached this point and i was just very disillusioned it was around this time that we renovated the van and moved into the van and did some traveling but this time i was just very disillusioned with how my goals and with life i'd achieved the goal that i had set out to achieve ever since i was a teenager i had the goal of being a millionaire by 30 or being financially free or i had all of these goals and i had actually achieved it not long term financial freedom like you get through property but if i didn't have to work right now i don't i don't have to work and i didn't know what to do with that i didn't know how to process that and i didn't know what the purpose of my life was anymore and i know this sounds like you know a rich person problem or something like that i wasn't rich by any stretch of the imagination i just had a decent income coming in not amazing but i just didn't have to work but the big mistake that i made along my journey was not actually taking time to work out who i was to work out where i found my happiness in my life up until that point of financial freedom so the mi...
https://www.youtube.com/watch?v=zt3371MQLTo
There's a lot of different financial goals you can set for yourself. I want to talk about why I think financial freedom is THE ultimate goal and a great goal to have.
0:00 - Introduction0:48 - Financial Freedom is a defining point1:25 - What is financial freedom?2:20 - Why is this the ultimate goal?4:52 - Financial freedom is a milestone7:43 - Financial freedom takes all the risk away10:45 - Financial freedom is a safe net12:35 - What is your ultimate goal?
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The 2 Year Strategy
Transcription:
Ryan 0:00there's a lot of different financial goals that you can set for yourself you can try to have a certain amount of money in your bank account maybe a certain amount of money in equity in your properties or maybe you could look at cash flow and look at being financially free in this video i want to talk about why i think financial freedom is the ultimate goal and why i think it's a really
great
financial goal to have hey and welcome to the step this is my absolute favorite place to hang out in the morning and get the morning sun and drink my coffee it's a bit chilly this morning that wind is a bit cold my feet are freezing now i'm not an advisor so don't take this as financial advice obviously make your own decisions speak to professional if you want to but for me financial freedom is the pinnacle and i i don't necessarily think it's a place that you stop you don't set a financial goal achieve financial freedom and stop but it's a really defining moment and it's a really defining point that you get to that just opens up the world to quite significantly so in today's video i want to talk about why i think financial freedom is the ultimate goal and then you can decide for yourself whether or not you think this is a goal worth pursuing for you and whatever strategy you use to get there so financial freedom let's just talk about what it is first so we're all on the same page there and that's just having enough cash flow coming in in a passive way that you don't need to work anymore that your expenses are covered so you've got a roof over your head you can afford food you can afford health insurance you can send your kids to the schools that you want and you can do the things that you want in your life you may not have the best car in the driveway i certainly don't you may not go on the most lavish holidays but it's like that good level you know i've got a decent car that i'm happy with i get to go on holidays with my kids that i love when when we're not on lockdown but that sort of level where it's like you are you are living a good life but you don't have to worry about money so that's kind of what i mean when i say financial freedom and the reason that i think this is such an ultimate goal is just the choices that it gives you with what you want to do with your life but also who you want to be as a person as well and so when you reach a point of financial freedom so at the age of 28 i had what i call pseudo financial freedom so i didn't online business that was pretty passive that was generating me decent income and i didn't really need to work there was never going to be that long term financial freedom that you would get through something like property but i had time where i didn't have to work for a couple of years so i got a little taste of what financial freedom might look like and what it might be and just getting those choices to do what you want with your time is super powerful and at the time i had no idea what i wanted to do with my time i actually entered a period of depression which i'd struggled with on and off throughout the years but not having that goal and not having that thing i was striving towards i was like i'm not happy why do i keep working but it gave me the choice as a time to pursue things that i wanted to explore so it gave me the choices to you know i pursued gaming for a while i did a lot of running i did a lot o...
https://www.youtube.com/watch?v=lTnodAY84Oc
With everything that's going on with the virus, the lockdowns and social distancing plus government stimulus, how is this going to affect the Australian property market moving forward?
0:00 - Introduction0:45 - Monthly change in dwelling values3:10 - Australia is NOT one housing market6:27 - Government bailouts7:35 - What kind of recovery will we have?8:30 - Decline in leading indicators11:05 - Higher than expected vacancy rates13:12 - What do I think?
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Pumped on Property's May Update
Transcription:
it's been a little while since I've done an Australian housing market update but with everything that's going on with the virus with the lock downs with the social distancing a lot of people out there are concerned about the market if you own a property you may be concerned about what's going to happen with that when's the best time to sell if you're looking at investing in the market you might want to pick your timing so I thought it would be a good time to sit down have a look at the data see what the data is telling us and have a think and a discussion about what may or may not happen in the future now obviously I don't have a crystal ball I don't know exactly what's going to happen all I can do is look at the data and make my own assumptions and own speculations and you need to look at the data for yourself and make your own decisions - so here we have the change in the monthly change in national dwelling values and this is provided by core logic and a link up to their main monthly update video in the description down below if you want to check it out that's where a lot of this data is coming from and so we can see that the property market actually showed some growth in April so even with the buyers happening even with the lock downs even with a lot of this stimulus not having come through yet into everyone's bank accounts we're still seeing the market grow which is really interesting but I do want to look at this trend and this downward trend so if we go back March February January December November we can see that growth rates peaked in November and we can start to see a bit of a downward trend here in the growth rates now I I actually kind of picked it which is really interesting and parries I want to do this update is just to have history of what's going on and so if we go back to June 2019 I did a video of has the market bottoms yet and so I was looking at it thinking has the market bottomed and that was one month ahead of schedule I think the next ones here is Australia prime for growth in July and so that was where we actually saw the last month of decline in July and then I think yeah August the market started showing some growth so if we go back to that core logic video we can see that August we had our first growth and then we ended up on this with trends so I actually kind of picked it there and I've been talking about it for a while since back in January February about this trend in the market was still declining but at a slower and slower rate and now we've got the opposite happening the market is still growing but at a slower and slower rate and if we go back and look at 2017 we can see this trend again we can see the market growing but at a slower and slower rate until it turned negative and then if we go ahead and go back to 2015 we can see that the market was growing but it had this downward trend at a slower and slower rate and then we saw a short period of decline before it grew again so looking at this trend and looking at the past it does look like we may be in in for a period of decline of the Australian housing market which i think is really interesting and will be really interesting to watch now I do want to note that Australia is not one housing market there is so many different housing markets and the capital cities all perform differently to each other I would say if I look a...
https://www.youtube.com/watch?v=dn1VU522uVs
Simon was about to secure his second property. Within 1 year he went from 0 properties to 2 properties in under a year.
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0:00 - Introduction2:00 - Journey from the 1st to 2nd property4:26 - How Simon chose his 2nd property7:50 - Do you regret buying this property?
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Success Story: Simon Bought His First Property!!!
Transcription:
Ryan 0:00Today, I'm really excited to share with you another success story from Simon Everingham one of the buyer's agents over Pumped on Property, he's actually been able to secure his second property. And he purchased his first two properties in just 12 months. So in less than one year, he went from zero properties to two properties. Now, this episode was filmed back in February before everything that has happened worldwide. So there's a couple of references in there that are a little bit old. But still, I think this is a really valuable video. And I think you're going to love his story and love hearing about his second investment property purchase. Today, I'm really excited to share another success story with you, featuring Simon, the buyer's agent here a report on property who was actually able to buy his second investment property at the age of 27. So he's actually been able to buy two in 12 months. So you want to talk a little bit about this second investment property that he's purchased, how he got there, what it's like, what's the plans for it, and just kind of revel in the success that you got here because it can be a very hard journey. If you look back at some of our older videos, which I'll link up below. It was hard for you saving not getting the mountain biking. Yeah, there was
Simon 1:18a lot of sacrifice there. But lo and behold, I have the mountain bike now. Got the second Yeah, yes, I've got the man in black bed. three grand now I only spent $1,000. I can't much money, man. So it's so funny. But I love the positivity, bro. Like I love it. Because I'm all about living the journey, not not leaving for the destination living for the journey. And you know, having you intro that video like that? It's like, yeah, hell yeah, that's, that's pretty damn cool. And yeah, and, you know, I'm gonna sit here and pat myself on the back. I think people should do that man, like people should appreciate the accomplishments that they've worked so hard for.
Ryan 1:59Yeah, well, that's thing you still obviously got a ways to go before you're completely financially free through your properties. But yeah, more of the hard work is done in securing those two investment property. So talk a bit about your journey from the first property which you purchased. It was like late 2018. Yeah. And then this one, which you purchased, what late 2019. Exactly. So yeah, I put
Simon 2:23the offer down for the first property in December 2018. settled, so the property was actually mine in early FEHB, I think it was the 12th of February. And then I got the offer on the second property in December 2019 and settled on the 10th of February 2020. So just got it within that 12 month time frame by two days from settlement to settlement. Basically 2019, which just a year of of saving, a year of sacrifice a year of investing for myself, I knew where we were in the global and local cycle, there was lots of negative sentiment toward the start of 2019. And that took a little while to recover. So I knew that that was a good opportunity for myself to get into the market when there wasn't too many other people around. So I just took full advantage of the market conditions and worked really hard to save up that deposit, I managed to increase my income over that period of time, which helped me get to that savings goal a little bit faster. And even though I was working hard and saving a lot like I still managed to live my life last year,
https://www.youtube.com/watch?v=Xkeu-wJhxiI
There are two main ways you can build a property portfolio so you can live off rental income.
Book in a Free Property Strategy Session
0:00 - Introduction0:21 - The two main ways to live off rental income0:41 - Strategy #1: Owning properties outright2:12 - How many properties do you need to own to live off rental income?4:49 - Strategy #2: Positive Cash Flow Property5:40 - How many positive cash flow properties do you need to live off rental income?9:37 - The cool thing about investing in positive cash flow properties14:13 - How to get $15,000 in passive income from 1 property
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Transcription:
Ryan 0:00in this video i want to look at the different ways that you can live off rental income and how to live off rental income so how exactly does this work and how can you become financially free not need a job in order to survive anymore and just survive off the rental income that you get from your properties now there's two major ways to do this when we're talking about living off rental income the first way is if the mortgage is completely paid off and the second way is what you would call positive cash flow so we're gonna have two scenarios here we've got positive cash flow and we've got owned outright we're gonna start by looking at the only outright one because that is the most simple one to look at so only outright works really simply is that you take some money let's say you've saved up a deposit of about 20% and use that money combined with the remaining 80% that you borrow from the bank in order to go ahead and purchase a property okay so this is a little property there that we've purchased what you then do is focus on okay using rental income from the property as well as rental income from your job and your life in order to pay off the debt on this property here until you get to the point where that is now zero and you now own 100% of the property and so when your mortgage is zero you obviously don't need to pay your mortgage anymore and so now what happens with this is the money now goes to you that is such a terrible person but the money goes to you and you can go ahead and live off that rental income you got to have expenses of somewhere around 20 to 30% of the rental income but so you get the total rental income minus your expenses of 20 to 30% and that's what you can live off so i think i've got like a mortgage calculator from years ago okay i couldn't find the calculator so i just quickly made a spreadsheet here where we've got our income goal the rent coming in from our properties per week this is then annualized times by 50 so allowing two weeks of vacancy per year regarding our expenses are roughly 20% and how many properties you would need to achieve your income goal so obviously if your income goal was smaller let's say you only need to live off $50,000 and let's say you did the two property strategy where you purchase a property and built a granny flat so your income is 400 from the house equals 400 from the house plus 300 from the granny flat then you're looking at $700 per week how many properties would you need to reach 50,001.79 if we put that up to 100,000 then you need three and a half of those properties with granny flats in order to reach your income goal of $100,000 so that's one way to live off rental income is to own your property outright so basically if we go and we'll fix up this image we purchase the property we pay down the debt we own it outright and then we have a bunch of different properties that all generate income okay that we own outright completely outright now you can pay these off using your own money him pay them off using the positive cash flow from these properties if we look at the two property strategy you got $520,000 so 400,000 for the house 120,000 for the granny flat $700 in total rent plus a low i...
https://www.youtube.com/watch?v=rTaa8uc9ytk
The full journey from not owning property to being financially free or wealthy through property can seem confusing and daunting. How do you get from zero to financial freedom through property?
What I've found is there are 3 distinct stages in most people's property investment journey.
Book a Free Property Strategy Session
0:00 - Introduction0:52 - What are the stages?2:15 - Stage 1: Buy5:09 - Some cash flow figures for an example property6:06 - Stage 2: Choices (paying down debt)\11:27 - Stage 3: Lifestyle13:07 - Summary14:03 - How to get started on your property investment journey
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Transcription:
Ryan 0:00investing in property and the full journey from not owning property to buying property and actually achieving financial freedom or certain level of wealth can seem confusing and daunting, how do you actually get from zero to financial freedom through property. And what I found by working with Ben Everingham from Pumped on Property is that there's three distinct phases of your property investment journey. And by breaking down the property, investment journey and property investment timeline, which we talked about in a previous video into three distinct phases, makes it really easy for you to say what to focus on. Now, in order to achieve whatever your goals are down the track. And for me, that's financial freedom. So in this video, we're going to be looking at those three stages. And what you could be focusing on in each of those stages. The stages are super simple. The first one is called the buy phase, or the buyer stage. And that is when you're actually purchasing properties, building up your portfolio, all of that sort of stuff. So where's my pictures, properties, here, we've got properties with granny flats as well, that is during the buy phase of the journey. The next step, the next stage, is what we call, we call it choices. You could also call this the paying down debt phase. So we call it choices because this is the stage that you get real choices in your life, and you can really change your life for the better and start to live consciously. And this is I think the most exciting phase of all of them is the choices phase. And then the third phase is lifestyle. And that is where you can actually go ahead and live off your properties. And so your properties, and now you either own them completely outright, or they're just generating enough cash flow for you that you don't need to work anymore. And you can go and live the lifestyle that you want. But ideally, you should have started doing that in choices anyway. So let's go ahead and look at these three stages in more detail. So you can get a better idea for them. So the first stage, which is the buy stage, now this is the most active stage, this is where you're going out and you're looking at the property markets, you're choosing a market, you're choosing a city, the area of the city, you're researching suburbs, and choosing the best suburb that fits your price range and your goals and what you think is going to be good long term, you're looking at the properties in that suburb, getting to know it inside and out, inspecting properties, and ultimately negotiating, purchasing and settling on a property and then renting that property out. So that stage of from saving deposits, all the way up to actually buying and selling on your property is the buy phase. Now that phase can last, you know, as long as you want really, it could last up to 15 years, if you want, what we find is that a lot of people can do quite a lot within just a two year period. And so they can actually go ahead and purchase a house and build a granny flat and purchase another house and build a granny flat within a two year period. Or maybe within that two year period, they just go ahead and they buy the two houses. And then later, then they focus on putting the granny flats on th...
https://www.youtube.com/watch?v=Y2NR65GF7uY
Being about to live a location independent life can open up so many different possibilities for your life and also change how much money you need to be financially free. In this episode I talk about some of the different ways you can achieve that location independence.
0:00 - Introduction0:32 - #1: Property Investing0:55 - #2: Share Investing1:27 - #3: Move and get a job in a better area2:15 - #4: Work remotely3:26 - #5: Start an online business4:20 - #6: Run a location independent business4:58 - Location indolence can make financial freedom easier
https://www.youtube.com/watch?v=apFE7Yaluj0
In this video I want to show you how I make money online by answering questions and how this may be something you can do as well to generate passive income on the side.
Blue Host website hosting
0:00 - Introduction1:30 - Inspiration for this strategy2:24 - The basic strategy2:50 - 1. Finding Unanswered Questions5:55 - How to find unanswered questions8:39 - 2. Set up a website and write articles that answer those questions10:35 - 3. Make videos to answer those questions11:59 - 4. Repeat the process12:57 - Challenges with making money online this way17:49 - Give us a thumbs up if you like this
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Transcription:
Ryan 0:00in this video i want to show you how i make money online by answering questions so rather than talking about property i actually want to talk about my online media business how i make money through it simply by answering people's questions and how this is maybe something that you could do as well to generate some passive income and extra income on the side so if that's something that you're interested in listen along and i'll show you exactly how i do it and how you can do it too dave this question asking me if i'd share a bit more about my experience and my story how did i start they understand is not properly relevant but something that the audience may be interested in since you've got so much free time at home why not start an online business or content creation so i'm not going to go into my backstory in this video because i did talk about all my backstory in this long video on how i achieve financial freedom at 28 with online passive income so i'll link up to that down below or you can go to onproperty com.au forward slash 795 to see the show notes for this episode but i talked about it in detail there and you can see there how i set things up i achieved what i call pseudo financial freedom so i didn't have to work for a couple of years there because my business was earning me enough money but it wasn't a long term financial freedom that you get through property so in this video i'm going to talk about how i did that how i make money online by answering questions called they ask you answer now this idea in this concept is taken from a bunch of different sources but a massive inspiration for me is this talk by marcus sheridan which was done back in 2013 and he ran a pool company and during the financial crisis of 2008 obviously sales for his pork company went down dramatically and in order to get more exposure and get more interest in his company he took all the questions that people had ever asked about pools and he started writing blog posts on them eventually grow grew his website and pool company to be the most visited pool website in the world i think and so the ideas shared in this talk again i'll link that down below if they asked you answer is just phenomenal and kind of what i built my business off as well as a bunch of other diet ideas that i'll talk about throughout this video so the strategy behind it is really quite simple is you find on answer questions you go ahead and set up a website and you write articles to answer them you or you make videos to answer them and then you go ahead and repeat that and then you can make money from that by using affiliate links or by doing advertising on those so let's go ahead and look through that one at a time finding unanswered questions so if we go to our handy friend google i'm going to type in a bunch of questions that someone might write and we're going to see that i actually rank for a bunch of days so something that's related to onproperty is how to find positive cash flow property so we go ahead and search for that you can see that i've answered this question on property how to find positive cash flow suburbs i think this article was written years and years ago so ...
https://www.youtube.com/watch?v=26Aqa_owSM4
You can potentially get as much as an 18% return on your money through investing in a granny flat. I know that sounds clickbaity but stick with me as we are going to go through all the figures so you can see it for yourself.
Property Tools Calculator
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For Introduction to Granny Flat Builder email me - Ryan (at) onproperty.com.au
0:00 - Introduction1:00 - Doing the cash flow analysis on the granny flat5:10 - Granny flats can be pretty easy to build and are pretty nice6:17 - Second granny flat walkthrough7:33 - Privacy and private access is also built in8:04 - Getting help building a granny flat10:27 - How a granny flat can change the overall cash flow of your property
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https://www.youtube.com/watch?v=v2vJL_1Qaf4
I thought it would be interesting to have a look at what happens if you get your timing wrong in the property market. How much would you lose in the short term, and how would you look financially in the long term compared to someone who did nothing.
Book a Free Property Strategy Session
0:00 - Introduction1:32 - Every peak and decline in the last 50 years3:58 - The worst decline and longest recovery (1989 in Sydney)4:39 - How our portfolio would have been affected5:24 - How much money would you have lost7:06 - How do property values grow over the long term8:25 - An example using today's figures11:10 - What if you bought at market bottom?13:30 - Comparing investing during the peak or bottom of the market15:05 - Taking cash flow into account17:24 - Get a free strategy session https://onproperty.com.au/strategy
Transcription:
Ryan 0:00I thought it would be really interesting to ask the question, what happens if you invest in property at the worst time, we always talk about market cycles, looking at the cycles of the different cities within Australia, buying at the best times and not buying at the peak of the market, but buying at the bottom of the market, when it's likely to grow, that obviously increases your chances of success, and decreases your risk. But what happens if you buy at the wrong time? What if you get into the market at the very peak, and then you see a massive crash the following year. So today, we're going to go through some statistics from the last 50 years of Australian property prices in Sydney, Melbourne, Brisbane and Perth. We're going to find this worst time to buy. And then we're going to map things out and see okay, what would our portfolio look like? How much money would we lose? How long would it take years to get back to square one? And what would our property look like in 1520 and 25 years down the track, versus if we just sat on the sidelines and did nothing. So it's a really interesting thought experiment to go through. And so as you can see, I've got a spreadsheet here with property data. This came from homely.com a few years ago, as you can see, it only goes up to 2016. But that doesn't affect our analysis, because the worst time isn't 2017 to 19. The worst time actually occurs back in the late 1980s, early 1990s. So if we go across the here I've kind of colored things in red is the peak of the market. Yellow is the recovery. So how long did it take to recover. And so we can see this first decline in Sydney in 1982. market went down by 2% took two years to get back to where it was, we can see here 1989, the following year, it dropped 17% 17% in one year, that is a huge drop for the property market. And it took seven years to get back to its peak and back to where it was. And why did it drop 17%? Well, this was obviously the recession of the early 90s. And look at property prices leading up to this recession, you go to 1984 1985, property prices of 84,500 or 92,000, so under 100,000. And then in the next 1234 years, you had property prices actually more than double in value, with 1988 property prices going up by a whopping 39% set a huge run up in that market, then we had the recession, which obviously led to that big decline. So this is the worst one that I could identify here, Melbourne, we've got a six year period here from 1990, to 1996. But the drop was not nearly as bad. We got some other drops here. There's one here from 2004 to 2010, in Sydney, where it took six years to recover. But again, the drop was not nearly as bad. If we go across to Brisbane, then there's been no less declines. They had one here where it took two years now the one where it took two years, another one where it took four years, but again, not as big of declines. And then purchasing is a bit more volatile to go up and down. And so we're seeing a bunch of periods of crazy growth, look at this 50% growth, as well as followed by some declines.
https://www.youtube.com/watch?v=1QuP3VNg9yE
Today I want to share with you a really powerful concept called the Property Investment Timeline. Through this time line you'll be able to map out and see exactly how property investing can change your life in the long term, but also how you can gain massive choices and freedom in your life in as little as 2 years.
Book a Free Property Strategy Session
1:08 - How Most People Invest In Property3:24 - The '2 Year Strategy' Explained5:43 - Stage 1: Buying Property in the First 2 Years9:16 - Stage 2: Getting Massive Choices In Your Life16:47 - How To Get Help Implementing This Strategy
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Transcription:
Ryan 0:00Today, I want to share with you a really powerful concept called the property investment timeline. And this is something that I think is going to completely change the way that you look at property investing, and show you how you can actually change your life through property investing, both in the long term 1520 years down the track, as well about how you can create choices and freedom in your life in the short term, and how you can create those freedom and those choices in as little as two years using the two year strategy. So I'm really excited to share this one with you today. And I think this is going to revolutionize the way you look at property and help you really visualize how it can change and impact your life and how it's so achievable. And so what we've got here is a timeline going from zero, all the way up to 20. And each of these is representing years of our life. And so zero, this is the start, this is where we are today, if you're listening to this in the future, you started zero, not when this was published. But yeah, as you're listening to this, today, we are at number zero. Now what most people do and how most people will invest in property is within the first year or maybe two years, they'll go ahead and they'll purchase an investment property, that might be a house, that might be a unit, some sort of investment property. And what most people do in Australia is actually purchase property where the expenses are greater than the rental income. And that's called negatively geared property. And I'll represent that with a downwards arrow with money there representing that it's actually losing money on a weekly, monthly or annual basis. Now, what this means is that we own an asset, but the rental income isn't paying for the asset. So we need to put money into it. So how are we going to get that money? Okay, most of us we have a job, or we have a business, which then we put some extra money from the job or business into that property to keep it afloat to pay for the mortgage. Now, what we hope to happen is that over time, if we go 1520 years down the track, that house that we bought for a certain amount is now worth a lot more money, maybe we've paid off the debt on that property or paid off most of it. And now we can go ahead and sell that property for a profit. Or we can go ahead and live off the rental income for that property. But in the meantime, from zero all the way up to 20 years, we are tied to our job, and we need to have that job in order to support the property. And to pay off that property. rental income will grow over time. So maybe we'll reach a point around here where it becomes cashflow neutral and starts paying for itself, we're going a long period of time where we're kind of tied to our job and tied to our lives. So long term, this can be a great way to generate wealth, a lot of people make money through property using this strategy. But obviously, the more properties you buy using this negatively geared strategy, you know, you're starting with a little bit of negative money or negative cash flow. And then as you buy more properties, that negative cash flow grows, and as you buy more that negative cash flow grows again,
https://www.youtube.com/watch?v=MTUetntAV2U
You may think it's a bit early to be preparing for the next recession while we are currently in one. However, there are things you can be doing now to set yourself up so you never have to feel like this again when the next recession comes.
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Keep Your Expenses Low
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Start To Build Up a Buffer Fund
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Pay Off Your Bad Debt
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Look At Ways To Increase Your Income
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Create Multiple Streams of Income
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Invest In Income Producing Assets
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Start Educating Yourself and Expanding Your Skills
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Transcription:
Ryan 0:00you may think it's a little early to start talking about how to set yourself up for the next recession while we're in the recession that we're currently going through but there are things that you can be doing right now in the next few months in the next few years to set yourself up so you never have to feel like this again when the next recession comes when something happens in the future as it inevitably will that will affect the economy so in this episode i want to talk about some of the things that i'm personally doing to set myself up so that i'm in a great financial position when the next recession hits and rather than worrying about my finances during the recession i can be out there looking for opportunities and ways to grow my wealth because everyone knows that a recession can be actually be one of the best times to grow your wealth if you're in a position to do it so hey i'm ryan from onproperty helping you achieve financial freedom and while the trigger for this recession caught everyone by surprise and no one was expecting that we were predicting that a recession would come in the near future and i was creating videos about this over a year ago and i'll link up to some of them down below if you want to check out them about how i was preparing for the recession that was coming and so what can we do now while we're in a recession and as we move through and out of this recession to prepare ourselves so we never have to feel like this again in the next recession and i think it's really important to note that while looking at the economy and looking at cycles and how things go up and down is really interesting and really important to do when you're making investment decisions it's important not to get frozen by that and to do absolutely nothing because at the end of the day what you care about is you and your finances and how you're going because even when a recession hits a lot of people are still fine so what can we do so you're one of those people so the first thing that i'm doing and that you might want to do as well is to actually keep your expenses low even as we come out of this recession as your job looks steady and everything looks fine don't go out there and lavishly spend all your money on things that don't add value to your life and don't improve your wealth long term so keep those expenses low that could be rent or mortgage it could be cars it could be the things that you spend money on one thing that this situation has really helped a lot of us do is actually work out ways that we can be more frugal and save money in our lives so for me that's making a lot of coffee from home i still love coffee i still have it every single day but i'm making it from home and really enjoying that as well as making more dinners from home and learning about things that i can make and not a great cook they're also just looking at ways to save money in life with fashion to save money in life with just where i was lavishly spending money where i didn't even realize even just like eating out and now i don't want to eat out and saving so much money not eating out so learning ways to save expenses in your l...
https://www.youtube.com/watch?v=ywjJldWub2k
There are some really big problems with the way most people invest and I've definitely made these problems myself. If you can avoid these big problems then you can lower your risk and achieve success faster.
Book a Free Strategy Session
1:10 - 1. Having No Investment Strategy At All6:09 - 2. Bad Timing In The Market10:29 - 3. Bad Cash Flow14:23 - 4. Not Doing Anything To Increase The Productivity Of Your Asset
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Ray Dalio's Video on Debt Cycles
Transcription:
Ryan 0:00There's some really big problems with the way most people invest. And you may be making these problems yourself, because I know that I've definitely made these problems in the past. But if you can avoid these, then you can really help to set yourself up for success in the future, and achieve your goals faster. So in this video, we're going to talk about these big four problems, and how you can avoid them in your life and how you can do better than I did in the past. So Hi, I'm Ryan from OnProperty, helping you achieve financial freedom. And with everything that's happening in the world at the moment, people can get so focused on certain aspects of things that they just forget about everything else. One example, people get so focused, and I've definitely done this, she gets so focused on the economy, and what's the global economy doing in the local economy going to be doing that you actually forget about your own personal economy? And what am I doing to actually improve my own personal economy? That's a huge mistake that I made. But let's get into it these four big mistakes. So the first one is having a bad strategy, or in most people's cases, it's just actually having no strategy at all. So no end point. So a lot of us think about investing and they just think about, I want to make heaps of money. Yeah, I want to make money. Let it rain, baby. And look, I have done this in the past, and often going into new business ventures that can sometimes be like this investing in cryptocurrency, I lost money thinking like this. And this one, I think, is probably the biggest mistake. Because if you don't have a long term strategy, it's very hard to actually get to where you want to go. And we get so swayed by people call it shiny object syndrome, where you're like, Oh, this new fancy strategy. And then you do that for a little bit. And you're like, Oh, this fancy strategy. And it's about getting good at something and just rinsing and repeating it, that really allows you to lower your risk and increase your chances of return as you build up your skills in that area. But if you have no strategy and no destination, then you have no way to objectively look at these potential investments, and whether or not actually going to get you to where you want to go, and whether or not they'll line up with your timeline and line up with your risk profile. So for me, I guess in my own strategy, I've got both the short term, which for me is business. And then I've got the long term, which for me is property. And so looking at the goals and looking at the short term, how much money I want to make through my business, I look at the investments that I make there in terms of content creation article writing the money that I invest, and think about what is the return going to be on that? What is the risk like, and then I track that on a short term basis. But I really have some short term goals there, as well as longer term goals for that as well. But then if I look at long term in my life, I want to invest in property to achieve long term success. And for me, that is 15 to 20 years down the track, I'm in my early 30s. Now, so you're looking at late 40s, early 50s, where I want to be completely financially free through my property investments. And what I want to do is actually invest in a way that is mostly passive. So in the beginning,
https://www.youtube.com/watch?v=M27oD19Vsuc
In times like this getting cash flow can be more important than ever. In this video I am really excited to go through the numbers and show how it's possible to get as much as $15,000 per year in passive income from a single property investment.
The Simple Strategy - 0:50
The Mortgage Expenses - 2:35
The Rental Income - 4:25
Extra Expenses - 6:43
The Total Passive Cash Flow - 7:37
What If You Want To Pay Principal and Interest? - 8:45
Where Could You Be in 15 Years Using This Strategy - 9:30
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https://www.youtube.com/watch?v=r8TWc1q3r-8
With everything that's happening in the world right now is an imminent property crash inevitable? Or could the opposite potentially happen?
In this episode I explore this idea in more detail and talk about some of the reasons it may happens as well as some of the reasons it may not.
Book a Free Property Strategy Session
Is a Property Crash Inevitable? 2:06
What Are The Signs A Property Crash May Occur 4:46
Other Factors To Take Into Account 6:45
7:56 What Could Have a Positive Effect On Property Prices Over The Medium Term?
The U-Shaped Recovery 10:20
Will We See Hyperinflation? 10:55
Is The Property Crash Inevitable In The Short Term? 12:25
What Can You Do To Improve Your Finances During This Time? 13:55
My Strategy To Thrive During This Time 15:06
What To Do If You Want To Take Advantage Of This Time In History 18:23
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Ray Dalio's Video on Cycles
Transcription:
Ryan 0:00with everything that's happening in the world right now a lot of people especially my youtube comments are talking about how there is this inevitable property crash down the line an economic crash because while the government is propping up people now through this health crisis that as time goes on and people don't have jobs and can't afford their mortgages we're going to start to see this major crash and major decline in the australian property market so in this video i want to talk about whether or not the property crash that these people are talking about is inevitable and what are some of the things that suggest that it may happen and what are some things that suggest that the opposite may be true and we may actually be in for a bull run and markets do actually go up and assets to go up in value so we're going to talk about that and kind of have an honest chat about that in this video hi i'm ryan from onproperty helping you achieve financial freedom and while it's really interesting to look at these economic cycles and to try and predict the future with our crystal ball as to what's going to happen through this cycle and through this phase of the cycle what i actually think is more important is actually you and how you're responding to this and how you're improving your finances through this so for me personally while i think this is really interesting and while this plays a role in the decisions that i make i actually need to focus on myself and focus on creating good income for myself focus on setting up my financial future focus on creating passive income streams in my life so that when the cycles do come when these market crashes do come when recessions do happen that i'm set up because let's face it there's a lot of people losing their jobs at the moment but if you're one of the people who hasn't lost their job and you've still got a job safe steady income then you'll actually find through this and through recessions a lot of people are fine you want to not be one of those people that gets hit hard so that's the most important and we'll talk more about that towards the end but is a property crash inevitable the short answer is no the longer answer is maybe and the really long answer is yes and i'll kind of explain what i mean by that and it's a bit of tongue in cheek there but i'll explain what i mean by that so first thing is it inevitable so are we set for an imminent property crash in the next couple of months or within the next year is that definitely going to happen now i interviewed steve cain who is an australian economist back in 2016 so a little under four years ago now and he was talking to me then about the australian property bubble and how it was due to crash and how it should drop by about 40 or 50% he was talking about that in 2016 to me i'm pretty sure he was talking about that before the financial crisis and didn't really expect what the government would do to actually prop up the australian economy and to prop up ...
https://www.youtube.com/watch?v=kVshm_1mY30
With everything that is happen in the world right now you may be finding you need to learn how to cut expenses and start to budget.
I've been through so many different budgets over the years, none of which worked, until I created this strategy for how to create an easy budget in 15-20 minutes.
In this video I'm going to show you how to create a budget and start saving money immediately.
Write Down All of Your Regular Expenses - 1:18
Calculate Your Expenses Based on Your Pay Cycle - 4:00
Take Your Income After Tax and Minus Regular Expenses, Can You Live Off What's Left? - 6:00
Look at What You Can Cut From Your Regular Expenses - 7:49
Set Up Your Budget and Automate Everything - 9:55
Automate Savings For Big Bills and Paying of Debt/Savings - 18:28
Look At It Daily and Do Weekly/Monthly Adjustments - 19:43
The Most Important Part: Now Focus on Making More Money!!! - 20:40
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Transcription:
Ryan 0:00with everything that's happening right now you may be finding yourself in a situation where you really need to cut expenses for your life and you need to learn how to budget and if you haven't really learned and mastered budgeting up to this point you might be frantically thinking oh my gosh what do i do and so in this episode i'm going to show you the simple steps that you can use to create a budget and to start saving money in your life right now i've tried so many different budgets over the years tried lots and lots of different strategies failed at all of them until i came to this way of budgeting which can be done in as quickly as 15 to 20 minutes and then you can automate a lot of it as well so you don't need to continually think about it so this simple budgeting strategy i have found really helpful in my life and i think you might find it helpful to any of you staying till the end of the video that's actually the most important part because once we've set up our budget once we're saving money that's not necessarily going to get us to where we want to be financially and to improve our lives so that is the most important point which we'll talk about at the end of the video so how do we actually go about creating a budget and what is the steps that i use so the first thing that i do is i grab a pen and a piece of paper and i sit down with a cup of tea like i've got right now with your spouse with your partner or you may want to do by yourself and the first step is to write down all of your regular expenses that you have in your life so this stage we're not looking at things like how much do i spend on coffee per week how much am i spending at the supermarket i get takeout every night because i'm a terrible cook how much should i spend on petrol etc those things i call discretionary expenses or living expenses and they fluctuate week to week and each week each day we get to make conscious decisions about those so every day if i go to the petrol pump i get to decide how much petrol am i going to put in my car today when i go to the grocery store i get to decide how many groceries am i going to buy when i'm at the coffee shop i get to decide am i going to buy a coffee and we're going to make tea and coffee from home so their discretionary expenses and we're going to do with them a bit later the first thing we want to do is grab our pen grab a piece of paper and write down all of our regular expenses those so things that happen recurring in your life so this is everything from your rent or mortgage repayment your phone and internet maybe you've got a gym that might be frozen at the moment but normally gym things like netflix things like car insurance and registration electricity will be in their gas maybe debt repayments as well if you got credit card debt or bad debt and car debt that you're paying off what are those repayments go ahead write all that stuff down also include i...
https://www.youtube.com/watch?v=0vdQpcJrec4
We are currently going through both a health crisis and an economic crisis. Here is what I am doing to both survive and thrive during this financial crisis.
If you want to hire me for SEO, blogging, writing and social media services email me: ryan[at]onproperty.com.au
Cutting My Expenses To The Bone - 1:38
Doubling Down on My Business and Passive Income - 4:52
Looking at Ways To Find Extra Income Sources - 7:43
A Plan To Freeze My Debts If I Need To - 9:30
Having a Backup Backup Plan - 10:19
This Is An Opportunity To Thrive - 11:56
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Transcription:
Ryan 0:00we're currently going through both a health crisis and an economic crisis with a lot of people losing their jobs people taking pay cards and also a lot of uncertainty around people's jobs business incomes etc and so i wanted to talk in this video about the things that i'm doing during this financial crisis to both survivor and to protect myself and my family financially but also to grow through this time and actually try and thrive through this time so when we get to the end of this because it will end eventually that i'm actually in a better financial position than when we started so i'm trying to use this as an opportunity and hopefully some of these ideas that i share with you will actually help spark ideas and you have things that you can do to survive this time and actually thrive in this time and end up in a better financial position hi i'm ryan from onproperty helping you achieve financial freedom and you know we we couldn't really see this coming obviously we didn't predict a global pandemic but i have been thinking about a looming recession for some time i started recording videos about a year ago talking about how to prepare for a recession what happens with property during recessions so i'll link up to those down below so i've kind of been thinking about this and preparing for this but it happened faster than i anticipated and faster than i wanted i was not completely prepared for this and set up to survive there so i'm in a similar position to a lot of you out there and that's okay panic stations what do i need to do to set myself up that i can foreseeably make it through this without running out of money so how am i doing that well the first thing that i'm doing is cutting my expenses to the bone i'm currently living at home so moved back in with my parents that actually happened to me a few months ago i was renting the owner wanted to move back into that place just so happened to be around the time that is the slowest for my business so christmas time january february tends to be my slowest months of the year so i thought i don't want to move back in around and started december only about back home for a couple of months and then when business picks up again i will move out a little did i know that in february and march the whole world would be thrown upside down so rent is obviously a major expense that most of you will be paying or a mortgage and so i was actually able to cut that out in my life already i know that's a really hard step for a lot of people people don't want to lose their homes living at home with your parents is not ideal obviously but i have taken those steps already swallowed my ego swallow my pride in order to set myself up financially get on top of my debts get on top of my cash flow anyway that i've cut that out the next biggest expense in my life was private schooling for my kids so my kids were going to a montessori school which we absolutely loved but when i saw that this was going to get serious a couple of weeks ago i made the decision with my ex partner kelly that kids mom that we would actually pull them out of school and enroll them in a public school to remove those fees because it's not feasible for me to pay it i could see that my busin...
https://www.youtube.com/watch?v=zkbh2VI__Bs
Given the turbulent times right now I thought it would be good to look back over the past 30-40 years of Australian property data and see how long property markets take to recover after they have gone through a decline. The results are actually shocking and far better than I expected
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Transcription:
Ryan 0:00these are obviously turbulent times that we're living through at the moment with about a quarter of the world in lockdown at the moment and it's very unclear to see okay what may happen to the property market in this time and there's a lot of people who are fearful there's a lot of people going through hardships in terms of losing their jobs or dropping hours etc but also during these times it can actually be a great opportunity to invest in property if you are in a good stable financial position and you're willing to stomach the risk that comes with that so in this episode i wanted to look at okay how long do properties actually take to go down when recessions here or when property markets go down and how long do they take to recover to give some of you out there security if you own a property what may you go through or if you're looking to invest what are the opportunities that may exist out there hi i'm ryan from onproperty helping you achieve financial freedom and this graph came out by corelogic in their march monthly update which i'll link up down below the march update actually only uses february data so looking at that to try and predict what's going to happen is is not very useful because everything's kind of happened here in australia in march but this graph here the historic periods of decline to recovery i thought was extremely interesting now australia hasn't gone through a recession since back in the early 1990s it does look like we're going to go through a recession given all of the social distancing and everything that's happening and businesses closing or going into hibernation but then there's also the massive stimulus that the government is putting back into the economy and how will that actually affect things once we move out of these lockdown measures and things that are happening generally speaking when the government does quantitative easing when they do all this stimulus stuff that tends to inflate asset prices so there's potentially an opportunity through this and on the other side of this but i thought it'd be interesting to look at these historic periods of decline nationally now this is not looking at cities individually because obviously australia is made up of many different markets you've got sydney and melbourne the two primary markets who went through one of the biggest declines i think in 30 years oh yeah and we look at this map this goes back to 1982 so we can see that this was the biggest decline in about 40 years basically
so you've had sydney and melbourne go through those but then you've got other markets like brisbane which has stayed pretty stable and only kind of went down a bit then before then over the last five years or so perth and darwin have had declines people saying that perth may have reached its bottom tasmania still recovered and still was growing during this time so every market in australia is different but here we're looking at nationally these periods of decline to recovery and so what i think is really interesting is that this timescale in months we see the longest decline from peak until recovery of those peak prices was 39 months or just over three years but most of them fall within a 30 month window or two and a half year window and a lot of them actually fall within a two year window now remember as well that this is assuming that you actually bought the properties at the worst time in history so you're buying sydney at the peak of 2017 right before prices start to fall so you didn't buy before ra...
https://www.youtube.com/watch?v=vDUhJaU_z-s
In this video we look at the data and growth rates behind the corona virus in Australia and other countries and use it to predict where Australia will likely be in 2 weeks and if a lockdown is imminent.
Corona Virus Data
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More on COVID-19 Growth
Transcription:
Ryan 0:00hi i'm ryan from onproperty and today is tuesday march 24 2020 and in today's episode i want to do something really differently usually i talk about property or personal finance today i want to talk about the Coronavirus and growth rates and how this actually may play out in australia and we can look at the data and look at what has happened in other countries and actually try to predict what is likely to happen in australia based on the measures that are being taken right now so this situation is obviously very overwhelming for a lot of people people are starting to lose their jobs the line and center link is extremely long which is sad to see a lot of my friends and people that i know have lost their jobs so it's a really hard time but what i found is that by looking at the data by understanding the growth rates by looking at other countries we can get some visibility into what this may look like in australia that helps reduce our overwhelm helps us to deal with the realistic situation and what actually may happen whether we may be going into lockdown or not i do think we will and we can just start to see this grab a hold of this information and then obviously make decisions for our own safety for the safety of our friends and loved ones in the community and also for our finances as well so we're going to be going through a bunch of numbers it's a bit nerdy today but hopefully you'll be able to see these trends understand the basics behind them which can give you a great view into the future and what may happen obviously i don't have a crystal ball so it's all speculation but i started knowing that this was going to be a really big issue in australia two weeks ago when i saw this video on COVID-19 and its exponential growth rate now two weeks ago in australia we were not in a bad situation people were laughing at me when i was talking about that we're going to need to go into lockdown soon they'll like you're just being anxious because i get anxious from time to time but i saw this and what this showed is that recorded COVID-19 cases outside mainland china every single day you're seeing a growth rate of about 15 to 25% every single day day after day now that is important the growth rate is extremely important because if you're starting with 100 people that means the next day you're going to have 25 new cases or 125 in total the day after that you're going to have 125 times by another 25% so 125 times by 1.25 which means you're going to end up with 156 new cases and then it goes up and up and up once you get started getting up to 1000 cases then you're getting you know you're getting 250 new cases every single day then you get up to 10,000 you're getting 2500 cases every single day so while it starts small that growth trend leads to big and devastating things as things progress i also saw this part of the video where they talk about australia versus japan at the time and that you could say that australia is doing 100 times better than japan however another way to look at this is actually that australia is one month behind japan and if you look at the growth rates of australia we are around that 25% mark so what we're going to do is look at this website which is well domino's dot info forward slash Coronavirus so i'll link up to this as well as this video down below and we can start to say the growth rate in australia new cases in australia as well as in the world so this shows the world but if we scroll down we can start to look at australia and we can start to see the growth rate now it doesn't tell us the growth rate you have to kind of calculate that yo...
https://www.youtube.com/watch?v=njO9BjfjXtM
Given what is happening in the world at the moment and how turbulent things are it's important to look at ways to minimise your risk if you're looking to invest in property.
One data point is the dwelling value to income ratio and in this episode we look at how this may present risk factors or may present opportunity and lower risk.
Advanced Suburb Research Course
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Core Logic's March 2020 Update: https://www.youtube.com/watch?v=KAcy6IvYaeY
Transcription:
Ryan 0:00given what is happening in the world at the moment and how turbulent things are if you're looking to take advantage of these times if you're looking to pick up a great investment during these times i do think it's really important that you look at ways to minimize your risk given the volatility that's in the market at the moment so in this episode i'm going to talk about the dwelling value to income ratio so how expensive is a property in a city compared to how much people actually earn per year and look at that and how that may present risk factors or may actually present opportunity and lower risk so hey i'm ryan from onproperty helping you achieve financial freedom and it is no surprise to a lot of people out there that australia and sydney and melbourne in particular arranges some as some of the most expensive cities to live in in the world now if you think of sydney you think of okay the biggest cities in the world the most affluent sydney cities in the world do you think of sydney do you think in melbourne i guess in australia we see ourselves as small players on the global market but looking at sydney here as the second most expensive city in the world compared to hong kong looking at melbourne here as number five and you start to see other cities like los angeles and san francisco and london is that so but do we really belong in this list there's another thing here of the 10 most least affordable cities and again you've got melbourne here number four and sydney here at number three you then got canada their markets going crazy and then you've got hong kong which is extremely expensive because of huge population limited land size availability and the way that policy works that governments rent out land to developers and so very expensive in hong kong do we really have a place here on this list and i've recently been watching core logics monthly update if you haven't checked it out you really should i'll link it up down below and i often do videos kind of talking about the monthly update and where we're at but what i wanted to go through is some of the data and some of the trend lines that we can see here and how this may affect your risk and where you may want to invest so instantly we can see here sydney and melbourne are the highest on the list with the name being 8.5 times dwelling value to income ratio so what that means is how much do people earn on average per year and how many multiples of that is required in order to buy a property so in sydney what's the average income per year 8.5 times that or eight and a half years income is how expensive it is to buy a house melbourne 7.4 hobarts 6.5 adelaide 6.1 brisbane is 5.9 and darlin all the way down here at 3.4 so you can start to pull some really interesting information from this firstly you look at the cities on this list what i would personally expect is this to go from top to bottom in order of the most populous cities and the ones where people earned the most money so you think sydney that makes sense melbourne then you would expect brisbane to be next however next we have hobart which is quite a small city much much smaller than brisbane but hobart is actually less affordable than brisbane why is that great question why is that and so you start to look at that and you say okay does hobart pose a risk a lot of people have been asking me about what i think about the tasmania market what i think about hobart kind o...
https://www.youtube.com/watch?v=gbAWx9dJ_QI
Transcription:
Ryan 0:00the market is developing really quickly right now at the moment with obviously a lot of hysteria happening in the media and a lot of negativity out there and we kind of want to provide you with what kind of opportunities to this present in the market and why this could actually be one of the best times for you to buy hi i'm ryan from onproperty helping you achieve financial freedom and today i'm joined by ben everingham buyer's agent from pumped on property we just released a video or talking commentary about what is happening globally what's happening locally in the economy and how that may affect property prices so if you haven't checked that out we'll link it down below but ben is on the road looking at different properties for clients as is the people that work over pumped on property and they've been seeing a big kind of shift in the market being able to close on better properties and more properties and so we wanted to bring that information to you today because that's something that 60 minutes isn't going to cover current affairs not going to talk about this so if you got your head screwed on right if you're an investor who actually has a long term vision and a long term plan this can actually be a good opportunity so off camera ben you're talking about you know what's happening right now
Ben 1:18yeah so if we look at the last 12 months right because like i'm right on the pointy end of the needle in terms of feeling the economic impacts directly in our business because you know leads ebb and flow and the number of people reaching out to us and you know you can even see it in our comments the amount of love if it's a good economy or the amount of hate if it's a bad one it's like a good gauge of what's going on so at the start of last year the first half of the year people were freaking out then the election happened then interest rates dropped and then paper went absolutely feral and then we got into the new year people have been going absolutely feral for the first two months of the year and then all of a sudden we get news that there's a deadly virus you know killing one out of every two people if you listen to some of the news channels and you know all of a sudden the stock market which should have starts getting bumpy and people go back into their shells so what that means is that eight out of the 10 people that you would have seen in your open home at sydney melbourne or brisbane right now aren't showing up because they don't want to get coughed on or because they're too fearful which creates an insane opportunity for the two people out of every 10 that still want to continue to move forward with their dream
Ryan 2:41yeah and we're saying off camera that when you're investing in property it's really important to have that long term plan in mind and to understand how this current property purchase actually fits into that long term plan how short term it can work for you with growth and cash flow but how you can hold that for long term i can help you achieve your goals because that's eventually what we're aiming for it's not just the next 12 months but it's the next 12 years 24 years etc and one of the things that can happen in a really hot and really frantic market is that if you're going to an open home and there's 70 other people there and they're doing a silent auction secretly in the backyard between four different couples then that can be really overwhelming it can lead you to actually compromise on the type of property you want compromise on the price of the property compromise on your cash flow and compromise on all of your long term goals because the pressures there that i've just got to buy something quickly and when the market changes like it may be doing at the moment we're not sure we don't have a crystal ball of exactly how this will play out but when it changes and ben's now got real estate agents emailing him saying...
https://www.youtube.com/watch?v=r6s1dYMgwbw
I live what you would call an unconventional decade in my 20's. Married young, kids young, poor to career success to starting a business and achieving financial freedom at 28. Here's some of the unexpected things I learned about money during my 20's.
8 Unexpected Things I Learned From My 20's
1: Financial Freedom Doesn't Made You Happy
2: Being Poor Definitely Makes You Unhappy
3: Debt Will Eat You Alive
4: Budgeting Is a Skill You Can Learn
5: Focus on Building Your Skills
6: Paying Yourself First is SO Important (and so easy)
7: Happiness is More Important Than Money
8: STOP Trying To Get Rich Quick
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Transcription:
I lived what you might call an unconventional decade in my 20s I didn't live a life that most 20 year olds were to live but through that journey I learned a lot about money and in today's episode I want to share some of the unexpected things that I learn about money through my unconventional 20s hi i'm ryan from on-property don't comdata you helping you achieve financial freedom and welcome to the money shed where today we're going to be talking about these lessons that I learned now as I said at the start I didn't live at conventional 20s or maybe that's conventional for someone in the 50s or something like that I actually got married at the age of 20 I had my first child at 22 my second child at 23 so I didn't go to university or anything so we were quite poor at 23 and I had myself and three other people that I was fully responsible for fully financially responsible for for feeding for housing all of that sort of stuff so we weren't very well-off I then did the career path ended up in a career where I was earning six figures had a free car free petrol a really good career and then left all that to start my own business build up my own business had my third child at 27 and was financially free through my business at 28 lived in a van lived in multiple different cities so didn't really do what a standard 20 year old might do which is go to uni party travel a bit and then start building up your career yeah I started young and I kind of did my 20s really differently and so here are some unexpected things that I learned through that decade of my life that I think may help you whether you decide to live a more conventional 20s and you know I probably wouldn't advise people to do what I did but I don't regret it either but these things might help you on your journey so the first thing and I think this is actually the biggest thing that I want to get across and that was discovering that financial freedom doesn't make you happy so that age of 28 I achieved what I call pseudo financial freedom so online businesses that were generating me enough money that I didn't have to work so I had a couple of years there where I didn't have to work at all I just we spent it up in noose our I went to the beach every day drank coffee every day and just kind of worked on the side and dabbled in work a little bit here and there but I didn't need to work I call it pseudo financial freedom because I knew it wasn't the long-term financial freedom that property investing or investing in shares can give you and it was going to be a short-term thing but I got to experience what financial freedom was like for a couple of years there at the end of my 20s and I learned pretty quickly that financial freedom does not make you happy so I thought it was just going to be get you chief financial freedom or you get rich and then BAM click your fingers you are going to be the happiest person on earth you can do whatever you want with your time whatever you want with your life and while there was an element to that what I actually found out what my experience actually was was that I didn't have any purpose in my life and I di...
https://www.youtube.com/watch?v=SmrtzwDP35k
Almost anyone can go out there and purchase an investment property, but it's actually really hard to become good at investing in property. Why is property investing so hard?!
Book a Free Strategy Session
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The Reasons It's So Hard To Get Good At Property Investing
1: The Barrier To Entry - 0:55
2: It's a Multi-Faceted Skill - 2:07
3: A Lack of Repetition and Feedback - 3:23
What Can You Do To Get Better at Property Investing?
1: Education - 4:51
2: Hire Someone To Help You - 6:19
3: Practice The Free Stuff - 7:50
The Secret life of Real Estate and Banking by Phil Anderson
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4: Get Clear On Your Strategy
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Step-by-Step How To Negotiate On Property
Transcription:
almost anyone can go out there and purchase an investment property but it's actually really hard to become good at investing in property in this episode we're going to talk about why it's so hard to become a good property investor and some things that you can do to improve your property investment skills to lower your risk and increase your chance of return so you can get to your goals faster hey everyone i'm ryan from on-property and welcome to my property workshop today property investment is just one of those skills that can be very difficult to get good at but once you're good at it it actually is it's quite simple and can become quite simple - repeat the same strategy over and over and over again and to grow your wealth so what is it about property investing exactly that makes it so hard and then what are some things that you can do to kind of overcome those obstacles and improve your skills anyway one of the main reasons property investing is so difficult is the barrier to entry in order to purchase a property you can't just go out into it if you want to go and play tennis don't buy a racquet or hire a racket and you can start practicing and playing straight away but if you want to invest in property then you're going to need to save a deposit whether that be ten or twenty percent of the value of the property if you're talking four hundred five hundred thousand dollar property at twenty percent that's about 80 to a hundred thousand dollars that you actually need to save as a deposit in order to get into the market even ten percent you looking at forty to fifty thousand dollars which is a larger sum than most people have saved in their entire life so barrier to entry is really hard in that aspect you also need to be in the financial position where you can borrow money from the bank or a lending institution so generally that means having a decent income and having a stable source of income as well so that can further add to the barrier entry of getting into the market so Barry fir entry just means it's hard to actually start doing it and as I say practice makes perfect and if you can't even start how are you meant to get good at it the second thing that makes property investing so hard is that it is multifaceted it's not just one skill that you need to learn when it comes to investing in property is understanding things like market cycles understanding the global cycle and the Australian cycle and how that fits into things understand the cycles of different major capital cities within Australia looking at then understanding you know different regions within those cities how they perform doing suburb analysis understanding that being able to analyze investment properties and their potential as well as problems that they may have looking at a suburb and the best spots within a suburb and what properties to avoid negotiating contracts all of this sort of stuff as you can see it can be a long list of things that you need to learn in order to get good at property and each of those things is an individual skill that you need to prac...
https://www.youtube.com/watch?v=G2NQ2rZ6zKk
I love it when a new year rolls around as you get an opportunity to set fresh goals for the new year. Here's some ideas on how to set property investment goals for the year so by the end of the year you're closer to your financial goals.
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1: Have You're End Goal In Mind - 1:40
2: Where Are You At Now? - 2:50
3: What's The Big Thing You Want To Achieve This Year?
4: What Are The Steps Needed To Achieve That Big Thing? - 6:40
5: What Is Your Next Immediate Step? - 9:45
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How To Create Property Investment Goals For The Next Decade
Transcription:
I love it when in New Year rolls around as you get an opportunity to set fresh goals for the new year so that at the end of the year I like to look back and say okay where am I now compared to where I was and it's always nice to be a bit further along so in this episode I want to talk about how does that property investment goals for the year so that at the end of the year you're gonna be closer to your ultimate goal whether that be financial freedom or whatever it may be hey I'm line from on-property helping you achieve financial freedom and right now I'm in such a better financial position than I was a year ago so a year ago I was just going through a separation was in you know I've been to a lot and was in a real rough situation and 2019 was really a year survival for me but towards the end of the year I really cemented my strategy to grow my finances and spend the second half of the year working out of that and while I'm not in exactly where I want to be I'm in a such better position and 2020 for me is a year of growth and so what I want to do is kind of help you to create a framework and how you can set your goals or your property investment goals specifically for this year so that at the end of the year you've achieved something big whether that be actually buying a property and making that big step or whether that be saving a deposit budging whatever it is to get you closer towards your ultimate goal for a lot of people that's going to be financial freedom that's definitely my goal or it may just be a certain amount of money in the bank so when it comes to setting goals for the year the first thing that you need to do is really have your end goal in mind so you need to understand where you want to end up because this year is only a small part of your life and it's only a small part of your finances as well and it's highly likely that this year is just going to help you get towards a larger and longer term financial goal so you need to understand what that longer-term financial goal is and if you don't understand that yet then you need to start there I just did a video on how to set your property investment goals for the next decade so if you haven't watched that one I will link up to it down below go ahead and check that one out we're talking more detail there about setting those bigger picture goals but looking at this year you need to know what your bigger picture goals are and so for me in that video I talked about my bigger picture goals of buying for investment properties and building for granny flats so having eight incomes in total and ultimately having those paid off and owned it outright so that is my bigger picture goal and what I'm working in and so I need to start there then I need to look at and you need to look at where are you now exactly what is your cash flow situation how much money are you earning how much money are you spending what is your debt situation what is your savings situation as well so getting real on where you're at now is also really important to try and work out ok I've got this big end goal in mind where am I at now and what steps do I need to take in order to get towards that end goal so for me 2020 is a year of growth but it's really about growing my business and getting myself into a position where I'm deb...
https://www.youtube.com/watch?v=8-Vr6W_NpAE
They say you can achieve less than you think you can in a year but more than you think you can in a decade. Here are some tips on how to set your property investment goals for the next decade so you can achieve everything you want to and more.
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1: Where Are You At Now and What Are You Unhappy With? - 3:00
2: What Do You Want Things To Look Like? - 10:00
3: What Numbers Do You Need To Make That Work? - 10:50
4: What Is It Going To Take To Get Your There? - 15:10
5: What Is a Realistic Timeline? - 23:37
6: What Is The Next Immediate Step To Get You There? - 28:34
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How To Create Property Investment Goals For The Year
Transcription:
they say that you can achieve less than you think you can in a year but more than you think you can in a decade in this episode I want to talk about how to set property goals for the next decade of your life for the next ten years so that at the end of the next decade you can be sitting exactly where you want to be and have moved financially forward because the next decade is going to pass whether or not you set financial goals whether or not you move towards those financial goals in a decade's time you're gonna be 10 years older and you can either be 10 years older and more set up financially to have a better decade after that or you can be 10 years older in the same position that you're in now because generally speaking with finances if we're not diligent if we don't actually set the path ourselves and say this is where I want to go this is what I'm going to try and get to generally we don't really move along we just stay on the rat-race we continue to work in jobs we have credit card debt and we just end up in a situation where we need to work in order to survive so if you want to get out of that rat race if you want to start moving forward financially over the next decade then this episode's going to be for you hi i'm ryan from on-property helping you achieve financial freedom and the last decade has definitely been a big one for me I'm about to turn 30 - so a decade ago I was 21 now I a decade ago I didn't have any children so I would have been well my wife at the time would have been pregnant with our first child who is about to turn 10 and so much has happened in the last decade for me my goal was always be financially free before I was 30 to be a millionaire I kind of achieved one of those like I achieved pseudo financial freedom at the age of 28 I call it pseudo financial freedom because I achieved financial freedom through my online businesses so I had a couple years there where I didn't need to work because my businesses just generated enough money without me but the internet changes and over time that was no longer the case so I'm now back working again but a lot change in a decade looking back me at 21 with no children and now nearly 32 with three children and you know so much has changed as well financially and so much has changed in my career I've been fortunate enough to run my own online business for the last six or seven years and done that quite successfully but where do I want to be in the next 10 years so I'm going to talk in this episode about how you can do your financial plan for the next decade but then I'm going to use myself as an example and kind of go through some of the things that I'm thinking about so you can get an idea of how this actually applies practically as well so the biggest thing well there's a lot of big things here but something that we need to do is to actually start where are you at now what's your situation now but also what are you unhappy with with that situation now talking about financial goals for the next decade I'm not going to be talking about you know those big I want to be a millionaire I want to be a billionaire those kind of lofty sort of dreams I want something that...
https://www.youtube.com/watch?v=OkkbDQAQq6A
There are a lot of different things you need to know to successfully invest in property while minimising your risk. Here are the skills you need to achieve success in property investing.
1: Budgeting and Saving - 1:25
2: Cash Flow Management - 2:24
3: Goal Setting - 3:26
4: Strategy - 5:15
5: Area Research - 6:24
6: Property Research - 9:20
7: Negotiation - 10:00
8: Settlement Process
9: Property Management - 10:48
10: Opportunity Analysis - 11:13
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Exactly How To Negotiate on Property
Transcription:
when it comes to investing in property there's a lot of different things that you need to know in order to be able to do it successfully and to minimize your risks and increase your chances of return investing in property can be really hard if you don't know what you're doing it can seem really overwhelming but if you know what you're doing in all of these areas it's actually pretty straightforward so there's a lot of different things that you need to be skilled at and you need to be capable in to successfully invest in property and in this episode I want to talk about what those things are so you can kind of look at this and say okay what areas do I need to improve in what areas do I need to work on and we can take away some of the overwhelm we can take away the idea of property just being this elusive goal this really big thing that I have no idea how to do that and we can break it down into the different things you need to know and be able to do and then you work on them one at a time and slowly build up your skills and eventually get to the point where property just makes sense it's actually pretty easy to do it's not that complicated at all but this does take time and it will take time to build these skills so let's get into this list of the things you need to know to invest in property successfully now this is obviously going to be you know a shorter list than probably there's probably more things that I'm missing here but this will give you a good starting point so the first thing is budgeting and saving so this is before you even looking at investing in property you're going to need to save a deposit and you're going to need to be good at budgeting within your own life and save you money within your own life in order to save a deposit so you can have that deposit and be able to borrow money to buy property without that deposit it's very difficult to buy property unless you go in with someone else or maybe here parents a guarantor you or something like that but yeah budgeting and saving is actually a very difficult skill and something that you need to work on and get better at so that you can save that deposit so that's going to be the first thing that has always been hard for me my my solution to that has always just been to make more money but as of probably two years ago I started get way more diligent with this and seen a huge improvement in my budgeting and saving in debt reduction and stuff like that so budgeting and saving is a skill that you're going to need to get good at cash flow management as well it's something that you'll need down the line when it comes to owning your property and running your property so you can apply this in your own life cash flow management is kind of looking at what are the upcoming income and expenses and how is that money going to flow because sometimes property might make money throughout the year but you have times where you have a really big expense and so you're going into the negative so you need to kind of prepare for those moments and so you can do that in your own life and start practicing it in your own life looking at okay when is my Reggio jus for my car when's that coming up what am i debt repayments or credit card repayments when do I have to pay rent or my mortgage and all of this sort of stuff I've actually mapped out my entire year and all the major expense...
https://www.youtube.com/watch?v=QV6L3Ard93Y
When we are trying to budget there are a lot of mistakes you can easily make that make it hard to follow your budget and achieve your financial goals. Here are 10 common budgeting mistakes that you'll want to avoid if you want to achieve financial freedom.
1:11 - #1: Not Finding a Budget That Suits You 2:22 - #2: Not Automating Things 3:26 - #3: Not Checking In With How You're Doing 4:25 - #4: Overspending 5:00 - #5: Making a Budget That Is Too Tight 5:45 - #6: Not Seeing Budgeting as a Skill 6:41 - #7: Having Everything Mixed Up and Not Having Clarity 7:57 - #8: Not Paying Yourself First 8:47 - #9: Not Budgeting For Things Like Christmas and Presents 9:41 - #10: Not Putting Aside Money For Big Bills or Holidays
Transcription
when we're creating a budget or trying to budget there's a lot of mistakes that you can easily make that can make it really hard to follow your budget and really hard to achieve your financial goals so in today's episode I want to talk about ten different common budgeting mistakes that you may be making right now and don't worry I'm pretty sure I've made every single one of the mistakes on the list hi i'm ryan from on-property helping you achieve financial freedom and budgeting can be a really dirty word it could be something that we like to avoid but if you want to actually achieve your goals if you want to invest in property and achieve financial freedom then you will need to budget and you will need to save that deposit and budgeting putting money aside spending less than you earn is a big part of growing as an investor and having money so you can invest so I've done many different budgets throughout the year years and made a lot of different budgeting mistakes and so hopefully you can learn from these mistakes and not do them yourself so see myself make these mistakes as well as other people so the first biggest mistake and this is the one that kind of kept me back for years was actually not finding a budget that really suits you and suits your needs there's a lot of different ways to budget out there people use everything from the envelope method where you actually get out physical cash and put it in envelopes and set it aside people do that people use applications for it I used to track our budget in an app people use spreadsheets there's all sorts of different ways that you can do it ultimately the way that I found works for me was to actually set aside money and automate a lot of the regular payments so things like my monthly internet phone bill rent all of that sort of stuff even car registration I used to save for on a monthly basis I would set that all aside and then I would give myself a weekly amount of money that I could spend and then I can spend that on whatever I want during the week so some of that might go to groceries some of that might go to going out and depending on the week depends whereas fence I'll finally found one that works for me so have a look at the different budgets out there and try them and find the one that's going to suit you best the second mistake is not automating things so there's a lot of payments and a lot of things that happen in your life that are automatic generally most people get paid on the same day every single week or in the same date every single month so that is automatic and so to make budgeting easier when you get paid having a lot of things happen automatically just makes your budgeting on autopilot something you never have to think about and it's automatically happening so paying yourself first putting money aside for the big bills saving for your holidays paying off debt if you have all of that stuff happening automatically as soon as you get paid you set up a scheduled payment that's recurring in your bank that money goes to where it needs to go so once it's automated then you're only focusing on the actual choices you need to make because if you're relying on yourself going into your...
https://www.youtube.com/watch?v=FPtjdarXDjM
I personally want this year to be my best financial growth year yet and I want the same for you. Here is the actions I am taking and the framework I am using to achieve long term sustainable financial freedom.
0:39 - Where I am at at the moment2:28 - Setting long term financial goals for financial freedom4:20 - Understanding what assets are required to achieve that goal7:15 - Action goals to create/buy the assets you need
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Transcription
hey you beautiful people the new year is upon us which is an exciting time to set new financial goals hopefully to move you towards your ultimate goal of financial freedom or whatever it may be I personally want this year to be my best financial growth year yet and I want the same for you as well so in this episode I'm going to talk a bit about what I'm doing this year and the framework that I have that I'm going to be using in order to achieve my success and achieve my financial growth goals and then ideally hopefully you can learn from this and apply some of this to your life as well hi i'm ryan from on-property helping you achieve a financial freedom to give you a bit of context of where I'm at at the moment is that at the age of 28 I was lucky enough to achieve what I call pseudo financial freedom through my online business set-aside online businesses that were generating enough income that I didn't need to work so I really got a taste of financial freedom at 28 and had a couple years where I really didn't need to work much at all and so I spent that living up in Nusa with my family enjoying the beach drinking lots of coffee every day go on the beach choice every single day and just enjoying the lifestyle that financial freedom offers internet trans change I wasn't keeping up with things so my business declined and now no longer financially free but I'm working to build that up again ideally to achieve that pseudo financial freedom or like self sustainability by the end of the year but to do it in a way that my business will then continue to grow not decline like it did in the past and also to then take those profits and reinvest them into property so that I can achieve long-term sustainable financial freedom so that's kind of an idea of where I'm at at the moment last year really was a year of survival for me and just getting through the year there was a lot of change including a separation relocation interstate a lot of expenses that go with that sort of stuff moving back to Sydney which is more expensive so huge adjustments last year and one of the downsides of my business as well is that the work you do doesn't really pay off for about 12 months so doing a lot of work at the moment and last year that I haven't really seen the fruits of yet but I'll hopefully see the for itself towards the end of this year so what exactly am I doing this year to make it my best financial growth year yet and what sort of the framework that I'm using and how can you apply that so the first thing is setting a clear financial goal and setting a clear long-term financial goal to start with for me that's always been financial freedom and I value financial freedom so highly over any other financial goal whether it be amount of money in the bank or materialistic things like a new car or whatever it is that people kind of seek after these days it's always been financial freedom for me and financial freedom is just the ability to support your lifestyle without having to work and the reason I think that's so important is that it gives you choices and Ben Everingham the buyer's agent over pumped on property who I work with and a really good friend of mine talks about this a lot is that when you have financial freedom you've got the choices to do what you want with your time and that was so important to me like back when I achieved financial freed...
https://www.youtube.com/watch?v=3s8tPgal6xI
Should you invest in houses or units? What are the benefits of investing in houses instead of units?
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0:42 - #1: Land Component1:25 - #2: Easier To Renovate and Manufacture Value On a House2:25 - #3: You Can Add Space/Bedrooms To a House3:13 - #4: More Control Over Your Cash Flow4:25 - #5: Houses Tend To Outperform Units Over The Long Term5:06 - #6: Units Can Have Oversupply Issues
Transcription:
Ryan 0:00should you invest in houses or units when you're looking at investing in property obviously you can decide between investing in houses or investing in units with units having the benefit of generally being cheaper than houses in the same area but in this episode i want to talk about six benefits of investing in houses over units hi i'm ryan from onproperty helping you achieve financial freedom and when it comes to investing it's very important that you choose the right asset class that is going to move you towards your goal of financial freedom or whatever it may be so what are the six benefits of houses over units and why should you consider investing in houses so the first benefit is the land component or the land value so we all know that it tends to be the land that goes up in value not the building itself the building depreciates in value gets older with time and less valuable but the land that they're building is situated on is what goes up in value and so when you purchase houses you have a much larger land component than if you purchase a unit so obviously purchasing a unit you've got multiple people on the same block of land meaning that your the your ownership of the land component is much smaller however if you purchase a house you own that full block of land so as the land goes up in value you get access to that entire benefit the second benefit of a house is as much easier to renovate and manufacture value through renovation in a house than it is in a unit especially when it comes to the exterior of a property now when you own a house basically that is yours there's no one on top of you there's no one below you there's no one next door to you or there's a next door neighbor but you're not sharing walls and so when it comes to structurally your house you can do what you want obviously you need to go through council and get that approved but you can do your own renovations without needing to ask for permission however if you're in a unit then there are some renovations you can do internally to the unit in order to increase the value of it without requiring permission from strata but however a lot of things especially if it's going to be a structural in nature or if you want to do the exterior that has to go through strata has to go through body corporate in order to get that approved so it can be much more difficult to do renovations with units and the third thing i guess is is much harder to manufacture value through actually adding space so adding space to a unit you can't really do that it's very difficult to turn a two bedroom unit into a three bedroom unit because the space is defined for you however if you have a three bedroom house there's the potential to do an extension on that property to turn it into a four bedroom house or maybe you buy one of those old houses that have a weird layout you can just change the internal layout to turn it from a two bed to a three bed or a three bed to four bed and increase your value that way or in terms of development as well you could knock down that house completely and you could rebuild something else you could even subdivide that house or there's other development opportunities there for you to get an increase growth and to manufacture growth in your property that just isn't possible with a unit the fourth thing is control over your cash flow so council rates yeah they do tend to be higher in houses than units because you have more of that land and if you own too mu...
https://www.youtube.com/watch?v=Divw0QpzbUs
Creating a passive income online and achieving a passive income online sounds sexy. It sounds like laptops on the beach but in today's episode I want to share the unsexy side of achieving financial freedom.
0:00 - Introduction1:08 - The unsexy side of financial freedom2:10 - My strategy for achieving financial freedom online8:22 - No one is going to achieve your financial freedom for you9:50 - If you want an extraordinary life, put in extraordinary effort
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Transcription:
Ryan 0:01A lot of people think creating a passive income online and achieving financial freedom online, through that passive income is just going to be laptops on the beach in a super cruzi lifestyle. But it can actually require a lot of hard work and some pretty unsexy nights are spent at the computer and said, Today, I want to talk about the unsexy side of creating financial freedom through your online income. Hi, I'm Ryan from OnProperty, helping you achieve financial freedom. And I did achieve a level of financial freedom at the age of 2008, where my online businesses were generating me enough money that I didn't need to work basically worked a couple of hours a week, lived up in Noosa, went to the beach a lot, and went out for coffee a lot, lived a good life for a couple of years. But businesses slowed down, I went through some personal things ended up in a bunch of debt. And so now I'm trying to climb myself out of that hole. And so today kind of sharing something that's a bit unsexy about the work that's required. Now, it is about seven o'clock at night, as I record this, I'm actually sick. So I've got the flu or something, I've got body aches, I've got nauseous. But this work won't do itself, given that I did rest on my laurels. And that I did get into debt, I don't have the available funds to just hire people to work for me and to do the word actually need to pull myself out of this hole by doing excessive amounts of work myself, and to fix my cash flow in the short term, and actually got a job at a local cafe as well. So you may know that I love coffee. And so I've got a job at a really cool cafe. And just working they're doing morning shifts, but living in the unsexy side of things. So I've still got income coming in from my online businesses, which is keeping my head above water. My dad likes to talk about it and say that, you know, my head is below water, but I've got a straw, just breathing through that straw. But my strategy with creating online income is to write a whole bunch of articles. So basically, I went through, and I looked at a bunch of my sites, I've got a lot of different websites on property being one of them. And I looked at on average, okay, how much do articles earn, when I write them, so how much they earn in the first month since I write them? How much do they earn in the second month, third month, fourth month, etc, looking at how much they earn in the first year, in the second year. And so the way that it works with online business, at least for me is that I create a lot of content. And that content then ranks in Google people visit my website, and I make money through advertising, affiliate sales, referral fees, and things like that. But looking at the statistics of how much money do I make per article that I write, the numbers are good over the course of about three years, I make good money over the course of about three years for the articles that are right. But in the first month, on average, I made $2.24 per article that I write. So in the first month on may just $2 per article. Now the articles that I write are extremely high quality, a lot of research goes into them, you're looking around, you know, 1500 to 3000 words per article to make $2 in the first month. And so basically at the moment, because I do have some cash flow issues,
https://www.youtube.com/watch?v=LDG4ekGdpHk
The new year is just around the corner and each year I like to set myself goals for the new year. Here are my financial goals for 2020 and how I plan to achieve them.
0:00 - Introduction0:42 - 2019 Recap1:45 - How I'm starting 20202:48 - What are my financial goals for 20204:32 - How I'm going to achieve those goals6:25 - Achieving financial freedom again6:56 - What are my goals for 2021?9:00 - Excited for On Property in 2020
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Did I Achieve My Financial Goals For 2019?
My Financial Goals For 2019 (Recorded 2018)
Transcription:
Ryan 0:00the new year is just around the corner and each year i like to set myself goals for the year that's coming i recently did a video on how i did with my 2019 goals so i set some goals at the end of 2018 how did i do with those i'll link up to that video down below if you want to go ahead and check it out spoiler i didn't achieve the goals that i made some steps towards it but in this video i want to talk about what are my financial goals for 2020 and beyond and kind of a bit of the plan of how i am going to go about achieving those hey i'm ryan from onproperty helping you achieve financial freedom and 2019 just a quick recap if you haven't watched the previous video is that it didn't start 2019 from a place of strength my businesses were going backwards i'd recently separated i was in quite a fair bit of debt and i was living with my dad in order to save on rent so i didn't really start from a place of strength and basically the middle of the year was one of the worst times financially for me where i nearly ran out of money and had multiple times where i thought i would basically not be able to pay for food not be able to pay for rent not be able to pay for the kids school fees so it was a really scary time and then towards the end of the year really cemented a plan for my business really understood how it worked in a new way and started working that plan as well as had some of my businesses grow as well so i got really fortunate towards the end of 2019 to be in a position where are starting to pay off debt again and just in a more stable financial position and so that's kind of the context for how we're going into 2020 funnily i'll be starting 2020 very similar to 2019 in that i will be back at my dad's place so at the moment i am in my own unit but the owners are moving back in here so i'm currently packing up and about to move back to dad's for the summer holidays the summer time period is the slowest time in all of my businesses so now people have christmas rush i can add the opposite of that and so cash flow i'm just not exactly sure what it's going to be over december january february and so i figured i'm just going to lower my expenses over that time period see how things turn out and then make decisions about where to live come february and so finally i'm going to be starting the year almost in the same way that i started 2019 but i'm definitely starting from a much better place of strength so starting 2019 i just hadn't been working on my businesses for years and was just starting to work on it again starting 2020 i've had all of 2019 where i've been working on my business and growing so that's really exciting to be starting from there so what are my financial goals for 2020 well my financial goals for 2019 was to pay off all my debt and to achieve financial freedom again through my businesses now i didn't achieve either of those and my goals for 2020 are kind of similar i also want to achieve financial freedom through my businesses again and i do believe that i actually have a plan now of exactly how to do that if i do x amount of work right x amount of articles are published x amount of videos then i will achieve that or i should achieve that so i've got a really fixed plan in mind of how to implement that but the goal around that is to grow my second six figure website so having two websites tha...
https://www.youtube.com/watch?v=hzuflTf2apQ
At the end of 2018 I set my financial goals for 2019. Did I achieve those financial goals? In short - no. Here are some of the obstacles that came up for me in 2019 and how I survived one of the hardest years of my life.
0:00 - Introduction0:37 - Recap of my goals for 20191:06 - Context around why my 2019 started so tough3:05 - I took meaningful steps towards my goals4:22 - The start of 2019 I was living with my dad5:40 - The biggest issue I had in 2019: Cash flow issues8:09 - When things really started to change for me10:35 - Getting a job13:25 - I SURVIVED 2019!!!
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Transcription:
Ryan 0:00at the end of 2018 i sat down with
simon everingham the buyer's agent from pumped on property and talked about what my financial goals were for 2019 so i'll link out to that down below but in this episode i want to talk about how i went with those financial goals in 2019 did i achieve them if so how did i achieve them if i didn't achieve them why didn't i achieve them hey i'm ryan from onproperty helping you achieve financial freedom and when i sat down with simon about a year ago today we were talking about our financial goals and what we had planned for 2019 now simon was just buying a property at that time which was his big financial goal and his goals in 2019 was i think to save up another deposit in order to go again and now my position was very different at that time and i really didn't start 2019 from a place of strength which we'll talk about but my goals for 2019 was to get myself out of debt and also to achieve financial freedom again now a bit of context around this it was probably 2016 or maybe 2017 now would have been 2016 or 2015 that i achieved what i call pseudo financial freedom so i had online businesses that were generating me enough income that i didn't really need to worry now i call it pseudo financial freedom because it's not a long term financial freedom that you get from investing in property where you know that as long as the market doesn't crash you're going to be set for life i call it pseudo financial freedom because with internet businesses things change all the time i knew that i would have just a set time period where this would be the case and then i would need to work again but basically back then achieve financial freedom really wasn't happy in life at all in fact suffered with a lot of depression suffered with anxiety and eating disorders and so i thought well rather than chasing the big box and multi building a multimillion dollar business let's actually chase happiness and go about finding happiness and so me my then wife kelly at the time we bought a van did have a van moved into the van with our kids ended up moving out to noosa and living there for a couple of years and hardly working so at the end of 2018 simon was in a really good financial position buying his first property i was kind of in the opposite so i had just not been working on our businesses for a couple of years me and kelly had decided to separate and so just kind of going through that separation and about to move into state so at the same time that that was happening my businesses finally started to move backwards and the income from my businesses was dropping so at the end of 2018 i really wasn't in a very strong financial position and i was actually getting into debt i also had a bunch of investments that went bad over the course of 2018 as well and so all in all i just didn't start 2019 from a place of strength so did i achieve my goals in 2019 of paying off all my debt and achieving financial freedom no i didn't achieve them but i did take meaningful steps towards them and i am now going to be starting 2020 from a much greater place of strength i will talk about what my goals are for 2020 in the next video but in this video we're k...
https://www.youtube.com/watch?v=vxrfKb94tzs
Building granny flats on properties you already own to get two incomes is becoming a more popular investment strategy. But does this investment strategy make sense?
Book a Free Property Strategy Session
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Granny Flat Walk Through #1
Granny Flat Walk Through #2
Transcription:
Ryan 0:00Investing in granny flats or building granny flats on properties that you already own is becoming a more and more popular investment strategy. But does that actually mean it's a good investment strategy? In this episode, I want to talk about whether or not granny flats make sense talking about some of the finances around it. And so you can decide for yourself whether or not this investment strategy makes sense for you. Hey, I'm Ryan from OnProperty, helping you achieve financial freedom. And I work a lot with Pumped on Property buys agency here on the Sunshine Coast. They help a lot of investors invest in southeast Queensland, and build a bunch of different granny flats on their properties. So how exactly does a granny flat work and what are the financials behind it? Well, the first thing to understand is that you can't build a granny flat everywhere, especially up here in Queensland, there's some councils that allow it and some councils that don't. Brisbane City Council, for example, is a council that doesn't allow you to build granny flats. So whether or not it makes financial sense might not matter. If you don't purchase a property that is in an area where you can build granny flats. Same with Victoria, it can be very difficult if not impossible to build and legally rent out granny flats down there, New South Wales in Sydney can be a lot easier as well. So check your local area to see whether you can do it. A big misconception that people have is that granny flats don't add any value to a property. But generally what we're finding with valuations of the granny flats is that when you invest in building a granny flat, which generally costs around maybe 120 to $140,000, you're generally getting that amount of lift in the value of your property. So let's say you purchase a property on the beaches here in North Brisbane for around 400,000, you then spend $120,000, building the granny flat so your total costs into that property is 520,000. What you will find in most cases is that the increase in value of your property will reflect that. So no longer do you have a property that will be valued at 400,000. But often you'll have the valuations come in at around that $520,000 mark. So obviously every situation is different, every property is different. But granny flats tend to add the value what they cost, but you rarely see granny flats actually add extra value. So that same example where you end for 520,000, it's unlikely that unless the markets moved or if you've renovated the front house than the valuation is going to come in at 600,000, or 700,000. So when we talk about granny flats, not necessarily being a capital growth play in terms of adding value to a property, we're talking about adding value above and beyond what it already cost to build that property. So we generally see an increase in value there. So that's something to consider as to whether or not they make financial sense, and that you're generally getting that value back. So you're spending the money to build the property, and you're then getting that value back. So that's something really important to keep in mind. Now to build a granny flat, you generally need to get a construction loan. So you could get around, I think 70 to 80% construction loan depending on the lender that you go with. So speak to a mortgage broker about that. So you don't need to put some money in to building the granny flat. So 120,020% will be $24,000 30%. If you had to put down a 30% deposit, that's $36,000. So you got to think about the money that you're investing into the granny flat,
https://www.youtube.com/watch?v=e0AtuU4Ix9o
Investing in property is an exciting thing but how do you know if you're ready to invest or not? Here are 7 clear signs you're not quite ready to invest in property yet.
How To Research a Suburb Course
0:45 - #1: You Have Lots of Debt At High Interest Rates 1:45 - #2: You Live Paycheck To Paycheck With No Buffer 3:00 - #3: Not Having a Deposit or Not Being Able To Borrow Money 4:24 - #4: If You're Susceptible To Get Rich Quick Schemes (Shiny Object Syndrome) 5:34 - #5: If You Don't Understand Market Cycles 7:53 - #6: You Have No Clue How To Invest In Property Yet 9:23 - #7: You Have No Clear Investment Strategy
2 Properties To Financial Freedom Strategy
Book a Free Property Strategy Session
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Transcription:
Ryan 0:00investing in property and achieving financial freedom can be a really exciting thing that you likely want to do however not everyone is ready to invest just yet and in today's episode i want to share seven and clear signs that you're not ready to invest so let's go through these to see if any of these exists in your life and if they do focus on getting rid of them and if they don't then maybe you are ready to invest hey i'm ryan from onproperty helping you achieve financial freedom and let's have a look at the seven signs that show that you're not ready to invest yet and as we go through this have a thing does this apply to my life and if it does you need to focus on okay how can i remove this barrier so i am ready to invest the first one is that you have lots of debt at high interest rates so if you're in a situation where you've got lots of debt whether that be personal debt car loan credit card debt excetera if you've got lots of debt and you're paying high interest rates for those then it's likely that you're not quite ready to invest yet a you're not really in a cash flow position to be able to do it you likely don't have a deposit so you probably can't get any can't get a loan anyway but if you've got yourself into this position that i mentioned not the best at managing money or something's happened to you you need to kind of pull yourself out of that hole before you can be ready to invest in property now obviously investing can be a way to pull yourself out of that hole but going further into debt to try and get out of debt can be a really risky thing to do is to be highly educated to pull that off so being heavily in debt generally speaking you want to focus on wiping out all of that bad debt before you start investing in property the second thing is you live paycheck to paycheck with no buffer so if money comes in each week each fortnight each month from your business or from your job and you're living paycheck to paycheck meaning that you get to the end of the month and there's no money left over and if you don't have a buffer fund in place so you don't have savings in place that can cover you if you lost your income so generally speaking most people advise having about three months of income set aside as an emergency fund in case something happens to you if you're not in that situation where you have that emergency fund and you're still living paycheck to paycheck not really being able to save everything then that says to me you might not be ready to invest yet because with property things go wrong from time to time there can be cashflow issues with the property let's say you lose a tenant or a tenant vandalizes your property and then you can't rent it for a while yes there's insurance but there's going to be delay until that comes into effect and so you can lose a lot of money there and be in a very difficult cash flow situation so if you're already in a rough spot financially with your cash flow and you're struggling each and every month to finish the month still with money in the bank then it may indicat...
https://www.youtube.com/watch?v=o9GfDoKz6Ao
There has been a fair bit of financial uncertainty of late in my life. Here are some of the things you can do to deal with financial uncertainty.
0:00 - Introduction0:58 - Business income has grown lately, but things are unstable1:39 - What can you do to live with financial uncertainty and get out of it?2:20 - #1: Do What Needs To Be Done In The Short Term4:32 - #2: Find Your Lead Indicators5:55 - #3: Look At The Long Term Of This To Reduce Overwhelm6:55 - #4: Map Out Your Worst Case Scenario8:03 - #5: Cut Your Expenses Massively8:32 - #6: Accept The Uncertainty9:48 - #7: Find Time To Do The Things That Will Deliver Long Term Financial Certainty12:16 - Financial Freedom Won't Just Happen, You Need To Make It Happen
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Transcription:
Ryan 0:00There's been quite a fair bit of financial uncertainty in my life as of late everything from you know, a separation last year to moving into state to fluctuating business finances has kind of led my life into a very financial unstable point. And so that's obviously had a lot of stress attached to it. But I'm working through that I'm creating certainty in my life. And so in this episode, I want to talk about some of the things that you can do if you're living with financial uncertainty. So there's a lot of the stuff that I'm doing in my life at the moment. And hopefully, this can help you. Hi, I'm Ryan from OnProperty, helping you achieve financial freedom, and life doesn't always go to plan. I was previously financially free through my businesses at the age of 28, had a couple of good years there where I didn't really need to work. But I am back on the grind now, as well paying off debt, trying to grow my income again and get back to that place of financial certainty, things have been going awesome. In terms of business income, you know, had really grown got it back to a really good place, I was able to move out of my parents, which I was living out to save money, I was able to rent a place, which is really good for my kids to have that stability, I had them about half the time. And so that was really good. But the exact month when I did that was one of my best worst business months on record. So all the work that I've been doing, it's all still doing his job. But I was just like a really unfortunate month, so led to some significant financial instability in my life, which is kind of caused me to this point where I can share this video today. So what can you do to live with a financial instability, uncertainty in your life? So a lot of this is designed either to a like, except to your uncertainty and be okay with that, be try and work out how to, like manage that and stay solvent and say, you know, stay afloat during that period as well as Okay, how can we get out of that financial uncertainty into a place of certainty. And I'm sure we're looking back on this video in the future, recognizing that I was at this point, and hopefully won't be at this point in the future. So you get to follow along with that. And say that that is good, that is bad as you go on this journey. So the first thing is basically do what needs to be done in the short term. So for me, with the separation and with business changes, that happened last year, I ended up being in debt debt that I need to pay off. Now, I was doing well paying that off, obviously, having that bad month makes it harder. And so for me, doing what you need to in the short term, to just guaranteed that stability is something that I think is really important. So for me, that means at the moment, looking for other jobs. So everything from potentially doing, you know, some morning work at a cafe that I absolutely love to full time work in a marketing agency just to get that extra income coming in, I'm very lucky and that I have quite a passive business that if I was to leave my busine...
https://www.youtube.com/watch?v=SL8UOSLI6Ho
In the past it used to be that short-term rentals were for people who own vacation homes and wanted to make a little bit of extra money from owning them.
But now with the introduction and the growth of places like Airbnb there's potential that you could make more rental income per year renting your property out short term then you could renting your property out to a long-term tenant.
Today's episode is made in partnership with Made Comfy who offer professional Airbnb management services.
A Growing Trend
I've had a lot of people in my life starting to do this, I've got friends who are now renting out their properties through Airbnb. I know people who rent out extra rooms through Airbnb.
I've got friends of my dads who live in Sydney and they purchased a property in Tasmania that was a dual income property. They're renting out both sides of the property through Airbnb and using a property manager and I think they were getting upwards of around 13% rental yield for that property.
It has been so successful they were considering selling their Sydney property and buying a couple more properties in Tasmania to replicate the same strategy and become financially free.
Short-term rentals may be a new way to make a property positive cash flow
In this article I want to explore some of the pros and cons and considerations that you need to have if you're considering a short-term rental for your property.
Do Short Terms Rentals Make More Money Than Long Term Rentals?
The first thing we need to consider is the money and whether or not you can actually make more money through short-term rentals than long.
I feel like if you can't make more money then it's going to be a lot more hassle for less money and that doesn't seem worth it.
If we have a look at the average monthly returns based on a two-bedroom apartment in Darlinghurst you can see that for long-term rental you're looking at around $3,500 per month. Self-managed Airbnb a bit higher and then using a professional property management service like Made Comfy that could even go upwards of $5,900
There clearly is the opportunity to make more money and it's not just Made Comfy that are talking about this either.
This article at The Courier Mail talking about Airbnb listings generating much more than pocket money. There's this article on Property Update talking about the Airbnb phenomenon and short term rentals then you've got this article talking about the most profitable Airbnb locations. Then we've got a forum post where people are talking about Airbnb and saying that "on average the returns are higher than a normal rental."
It definitely seems like there's potential to make more money through short term rentals.
Short Term Rental Case Studies
Let's have a look at some case studies here from Made Comfy's site
Collingwood, MEL
For the Collingwood one you can see that they actually boosted their rental income by moving to a short term rental. They get a 40% higher net return than a long-term rentals.
That word NET RETURN is actually really important because gross return is how much total income that you're bringing in and net return is actually your return after expenses.
So 40% higher net return, not just a 40% higher gross return.
One of the I guess cons of short-term rentals is that they are more expensive to manage, you need to furnish them as well and you need to clean them so there's a lot more management and maintenance required that cost more money.
Pyrmont, SYD
If we look at the one in Pyrmont in Sydney, we can see a 73% higher net return.
Bondi, SYD
If we look at the one in Bondi that's 32% higher
West Melbourne, MEL
If we look at the one in where was this West Melbourne 55% higher
Manly, SYD
Lastly let's look at the one in Manly that was 46% higher.
These examples aren't 3% higher, 2% higher or 1% higher.
https://www.youtube.com/watch?v=xQhvZ3MulwA
Here is some of the best business advice I received that I didn't take. I now see how valuable that advice was and it's now something I am implementing in my life and my business.
0:00 - Introduction0:30 - The Story Behind This Advice0:56 - "When the money is good, take it for what it's worth because the opportunities won't always be there"1:28 - When should I have taken that advice and why didn't I take it?3:46 - How I am implementing this advice moving forward5:13 - So many people don't take advantage of the opportunities in their life5:50 - How Ben Everingham has taken this advice to grow his net worth6:30 - I will take this advice moving forward
BOOK A FREE PROPERTY STRATEGY SESSION
HOW TO INVEST IN PROPERTY COURSES AND RESOURCES
DISCLAIMER No Legal, Financial & Taxation Advice The Listener acknowledges and agrees that: • Any information provided by us is provided as general information and for general information purposes only; • We have not taken the Listeners’ personal and financial circumstances into account when providing information; • We must not and have not provided legal, financial or taxation advice to the Listener; • The information provided must be verified by the Listener prior to the Listener acting or relying on the information by an independent professional advisor including a legal, financial, taxation advisor and the Listener’s accountant; • The information may not be suitable or applicable to the Listener’s individual circumstances; • We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and we are not authorised to provide financial services to the Listener, and we have not provided financial services to the Listener.
Transcription:
Ryan 0:00today i want to get a bit real with you and talk about
some of the best business advice i received that i didn't take that i now see how valuable that advice was and how right this person was and something that i'm now implementing in my life and in my business moving forward and is not just applies to business but it can apply to your personal life as well even if you're in a job so hey i'm ryan from onproperty helping you achieve financial freedom and this extremely valuable piece of advice was given to me by a business owner i used to be a pharmaceutical rep and he owned one of the pharmacies he was a young gun he was in his mid 20s i think super successful and i was leaving pharmaceutical industry to start my full time business and i asked him what advice he had he says i have this one piece of advice and he said to me when the money is good and when things are going good milk it for all it's worth and go after that completely because it won't always be that way and the money and the opportunities won't always be around so i remember hearing that advice i remember it really stuck with me but i didn't i didn't listen to it like i didn't do it and so it was something that when he said it i'm like that's really interesting i'm going to take note of that i think that's really fascinating but then when it came time for me to actually take that advice i didn't take it so when should i have taken that advice was about three years ago i was 28 and my business was doing really well i was financially free through my business i had been creating lots of content for years i think i had about three or four years working my business to get it to that point and i was basically financially free through my businesses on low six figures and so things are going well but i got really disheartened i got really depressed at the time because i'm like okay i achieved my goals of financial freedom i'm not happy why am i not happy what is the point of this and so i then went on a self discovery journey over the next couple of years being financially free going okay how do i actually live a happy life whilst being financially free and so what th...
https://www.youtube.com/watch?v=hDIomBqFDEs
The Australian property market has actually grown for the first time in 15 months! Since way back in March of 2018. Let's take a deep dive into the data and why this is happening in this August property market update.
Suburb Research Course
Book a Free Property Strategy Session
Core Logic August Market Update Video
0:00 - Introduction0:35 - This trend has been coming since December 20181:04 - This is led by the major capital cities growing1:42 - Why is this happening?2:47 - Monthly sales seems to be finding it's floor3:44 - Sydney market update5:46 - Melbourne market update7:39 - Brisbane market update10:05 - Adelaide market update10:55 - Perth market update12:44 - Hobart market update14:00 - Darwin market update15:27 - Canberra market update16:00 - Will this growth be sustainable?17:33 - Things holding us back from a massive boom
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July 2019 Australian Property Market Update
Transcription:
Ryan 0:00the australian property market has actually grown for the first time in 15 months since way back in march of 2018 so in today's monthly update we're going to look at these figures talk about why the market is growing and try and look at the data and see if we can see any trends about what's going to happen in the future hey i'm ryan from onproperty helping you achieve financial freedom and every month we sit down and we look at the australian property data see where things are at and what's happening and if we look at this monthly trend we can see that all the way back since december back in 2018 so over six months ago now we started to see this trend where the market was still declining but it was declining less and less every single month and i said back when i started doing these updates we're going to watch this because if this continues eventually it's going to go into the positive and that's exactly what has happened this has led primarily by sydney and melbourne both drying obviously being the biggest capital cities with the most volume we can see they're both grown by about 0.2% we can say brisbane the third biggest capital city also had its first month of growth as well since declining i think it started declining back in november of 2018 so seeing rises there also rise in hobart and a strange out of character rise in darwin as well of 0.4% so five of the capital cities growing there over the month so there's a whole bunch of factors as to why this is happening and it's not just one thing so we've got the lowering of interest rates so the rba cut interest rates two basis points or by 0.5% these are the lowest interest rates we've had in history so obviously lower interest rates means people can borrow money at cheaper prices and makes housing more affordable you've got easier lending as well with abra releasing some of the criteria that banks need to look at in terms of lending they used to assess people i think it was on seven or 7.25% and now the banks have some flexibility with that many people who couldn't previously get loans may now be eligible for loans as well there's improved sentiment in the market there's been tax cuts and looking at the stock market as well there's not significant amounts of stock flooding to the market making it a buyers market so people listing there's been less listings which means there's less options there so they improve sentiment with the less options obviously helps push the prices up for that we can see here that the monthly sales with a six month moving average has started to find a floor here and actually move upward so back in the last two housing downturns we can see around here the monthly sales figures we can see we dip just below that but it looks like we're trending upward so this will be something that we need to watch and this is actually a really interesting data...
https://www.youtube.com/watch?v=eaL7u50Mcw4
Now is a very exciting time in the Australian property market with Australia showing it's first month of growth in nearly 2 years. But I personally wouldn't just be chasing capital growth in this market, here's 7 reasons why.
Book a Free Property Strategy Session
0:00 - Introduction0:31 - #1: Mid Cycle vs End Cycle Slow Downs2:15 - #2: Looks Like We Are Heading For A Global Recession3:14 - #3: Interest Rates Are At All Time Lows4:09 - #4: Sydney Only Dropped ~15%, Melbourne Only Dropped ~10%5:37 - #5: Not All Areas Are Growing in Value6:33 - #6: Wage Growth Isn't That Strong7:08 - #7: We Are In Turbulent Times
What I Would Do In The Current Market
8:22 - #1: Seek To Minimise Risk With My Investments9:05 - #2: Get Myself In A Good Cash Flow Position10:03 - #3: Purchase Assets That Are Increasing in Natural Desirability11:30 - #4: Have a Back Up Plan12:08 - #5: Properties Where You Can Manufacture Growth
Transcription:
Ryan 0:00Now is a very exciting time in the Australian property market with the market as a whole. On the rise again, I'm just looking at some data here from corelogic, showing with high growth in Sydney, Melbourne, Brisbane, Hobart and even Darwin over the last month, but I still don't think this is a time to just be chasing capital growth above everything else. So in this episode, I want to talk about seven reasons why you shouldn't just chase capital growth in 2019 and 2020. The first reason is mid cycle versus end cycle slowdowns, or recessions. Now, the last recession or global recession that happened was in 2008, the last Australian recession was something like 27 or 28 years ago, it's absolutely ridiculous, and how long we've actually staved off a technical recession. But it does look like we're heading into a time of economic contraction. In Australia where things aren't growing as quickly as they were during boom time. It's unclear as to whether this is a mid cycle slowdown, like Ben Everingham talks about and Phil Anderson talks about, which is a little bit of a slowdown before we have more growth, and leading into an end cycle, which is a much larger style, depression or recession. So it's unsure at the moment, if we're heading towards a mid cycle slowdown or an end cycle slowdown. And those will affect the market very differently. And what governments do to combat those will affect things differently as well. And so one of these things that I'll talk about just kind of lead to the turbulent times in the market, unclear as to whether we're going to have boom times ahead, looking back at Sydney at 2015 2016. Right before it had that massive run up, you could kind of see that, okay, yeah, this ramp is going to happen. And it's just a matter of how long this is going to last. Whereas at the moment, heading into a mid cycle slowdown or an end cycle slowdown, it's unsure which of those we're heading into, but it definitely looks like turbulent times ahead. It doesn't look like boom times ahead. And now that may change, and the economy may flip on a dime and move into boom times again. But at the moment, it doesn't look like that's happening. The second reason is that does also look like we're heading for a global recession. Now the last global recession was 2008. And what's happened is that the yield curve has inverted. I'm not going to get into the technicalities of this. But this has been an indicator that a recession is coming and has always happened before a recession in the last 50 years. Now there was I think one or two times that happened and we didn't have a recession. But we did have a slowdown. But the longer this yield curve is inverted, and it has been inverted for some time, the higher the chance of a recession in America. And so America obviously is going to lead the charge. And if they end up in a recession, it's highly likely to cause a global recession. So it is looking like we're going to head into a global recession.
https://www.youtube.com/watch?v=RVvILa_MZoQ
A big concern with people looking to invest in granny flats is who is actually going to rent a granny flat? Well we are finding that a lot of high quality tenants want to rent granny flats.
Learn More About Granny Flats
0:00 - Introduction0:48 - Making the distinction between new build and old school granny flats2:32 - There is a broad spectrum of people who rent granny flats4:17 - If priced correctly we get a lot of people through the granny flats5:45 - You need to make sure there is the demand for granny flats in your area
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Granny Flat Walkthrough
Transcription:
Ryan 0:00a big concern with people looking to invest in granny flats is who is actually going to rent a granny flat am i going to have someone in my backyard who is on the dole who is a derelict person who's not going to take care of that property who was just an extremely undesirable tenant or am i actually going to get good tenants for this property that's what we're going to be talking about in today's episode hi i'm ryan from onproperty helping you achieve financial freedom and if you haven't heard a lot about granny flats or haven't seen one of my walkthroughs of the granny flats i'll link up to it down below if you haven't or if you haven't been to a new build granny flat yourself you might find yourself asking who on earth is going to rent this who is going to rent a granny flat and live out the back of someone's house now it's important to make the distinction here between a new build granny flat and a very old school style granny flat so old school might be that cockroach infested granny flat that is in the backyard of someone's house but it's pretty worn down probably full as as best as as well and actually shares the yard with the front house and might even share some amenities like a laundry with the front house or something like that something that someone built on the cheap to actually has their legitimate grandma because she needed to move on the property with them granny flats have come a long way since then what i'm talking about is a new build probably generally around 55 square meters generally speaking a two bedroom granny flat is what we build most of our clients build most of on their properties two bedroom 55 square meters with a deck and now this property also has a fence between it and the house it has its own private access it has its own private little courtyard or yard space as well and is also a completely separate tenancy from the front house so you're looking at separate water separate electricity separate tenancy agreements for the property so i just want to make the distinction there between the old cockroach infested granny flat and the new style new build granny flats which are really i guess more akin to a two bedroom unit or a smaller two bedroom unit with a deck so the deck is effectively the balcony of the two bedroom unit and then you've got a yard as well so it's kind of a two bedroom unit with a yard so when looking at okay who is actually going to rent these i just want to have that distinction in mind so who is going to rent the granny flats now there is actually a broad spectrum of people that rent these granny flats not everybody wants to live in a big house not everybody wants to have the maintenance of a yard people do want to live in a nice smaller new build desirable housing so grandpa's don't only because they're on the cheaper end of the market it's normal to think okay there's only appear to lower socio demographic people but that is really not the case you have single people who likely be in these granny flats you have couples who might be saving for their first property or who just don't want to spend too much on rent or who aren't going to be home as much you have flying fly out workers you have older people or people who have been through marriage bust ups where it might just be one of them looking to rent a property so ...
https://www.youtube.com/watch?v=EA0hbw7TdxA
When it comes to growing your wealth significantly you need to change as a person in order to do that. You need new ideas, new belief systems and new ways of doing things if you want to move from middle class to truely wealthy.
0:00 - Introduction 0:55 - Rich people see the world in a different way 2:00 - 10 Years ago I changed my mindset and it led to me achieving financial freedom at 28 4:17 - Moving from middle class to becoming rich 6:17 - You need to inject new ideas into your life 8:09 - How to challenge yourself with new beliefs 11:50 - Learning to earn mid-high 6 figures
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It's Ok To Make Financial Mistakes
Transcription:
Ryan 0:00comes to growing your wealth significantly. You need to change as a person in order to do that there is wealth creation and growing your wealth really slowly and incrementally just by doing the basics, which is spending less than you earn, saving what you can and then investing and obviously that can build and compound over time. But if you look at the most successful and richest people, did they get rich by doing that by just working an average job saving a little bit each and every month? And then going ahead and investing that and growing it? The answer to that question is generally speaking, no, is that the most wealthy people are doing something completely different to us and looking at things in a completely different way to us. I'm currently reading the book fake by Robert Kiyosaki. And in that book, he talks about how he'll go to seminars and talk about the way he invest in real estate with no money down or the types of deals that he does. And he says, inevitably, people always say to me, you can't do that here, or I can't do that here, for whatever reason. And then he answers back to them that they may not be able to do it here. But he can. So Robert Kiyosaki sees the world in a different way, and is just way more expansive around money than a lot of us more experienced, and can do deals that makes him millions of dollars, without costing him millions in a way that I couldn't even fathom at this point in time. So there's multiple ways to get wealthy. Obviously, there's the basics of less than less than we earn, let's pay off our debt, let's accumulate assets. But then there's this next layer on top of that is, actually let's jump from poor, to middle class to wealthy. And to jump from I think middle class to wealthy just requires a massive change in mindset, and massive change in the way that you see money. I remember 10 years ago, I spent probably one or two months reading through almost every single Robert Kiyosaki book, just because I wanted to change the way that I saw money, and changed the way that I looked at things. And so I read and consumed these books every day for a couple of months, and just started to rewire my brain, looking at money, and looking at generating passive income, and focusing on that over building assets or the other things that people were focusing on, especially in the property investing space, at that point in time. And I just remember going through a massive transformation 10 years ago, when I was reading these books, and the way that I saw the world, and the way that I saw money changed dramatically. And then what happened over the next seven or eight years, is that I worked in a job at one point, but I built up a business on the side that generated me passive income, I saw an opportunity where if I created websites and wrote articles that they could rank, and they could get traffic and make money for years. So I've got a website that I made probably seven or eight years ago, that I haven't touched in seven or eight years, that makes me $100 per month. And it's passive, it's worth that I did all those years ago, that is now making me passive income. And so because of that change in mindset and change of what I was focusing on, it changed the work that I did,
https://www.youtube.com/watch?v=9tKUA4Cu__o
Today I want to show you through a property that has done a minor renovation to show you the impact this can make. This property also has granny flat potential.
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0:00 - Introduction 0:33 - Staging a property for sale 1:45 - Previously rented for $350/week, but now likely to rent for $400/week 3:27 - Working out if you can fit a granny flat
Recommended Video:
Renovator Purchase $39,000 Under Land Value
Transcription:
https://www.youtube.com/watch?v=u8BOGjajFRA
Do granny flats add value to a property? Investors have been talking about granny flats adding absolutely no capital growth value to a property, and the data shows that this just isn't the case.
0:00 - Introduction 0:53 - Misconceptions around granny flats adding value 1:28 - We are finding granny flats add value up to the build cost 2:30 - Evidence is there that granny flats do add value 3:26 - Granny flats don't seem to add instant equity
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Newly Completed Granny Flat
Transcription:
a big conversation point recently and something that's come up with a bunch of clients is do granny flat add value to a property if you're going to be spending 120 130 140 thousand dollars to build a two-bedroom granny flat out the back of the property is that actually going to add any value to the property or does it add no value at all that's what we're gonna cover in today's episode hey i'm ryan from on-property helping you achieve financial freedom and we obviously talked a lot about granny flats in the two properties to financial freedom strategy can be a great way to get an extra income on a property you already own and to get a great positive cash flow as well for the build costs given that we're seeing rental yields of about twelve thirteen even fourteen percent on these granny flats when compared to the cost of the build but do granny flats add any value so the misconception that I'm seeing with people at the moment is they're expecting that granny flats add 0 value to your property at all so you're out laying $120,000 let's say you purchased a home for $400,000 a 3-bedroom home from 400,000 you then add a granny flat in the backyard for 120,000 people are assuming that okay my total cost or total import is five hundred twenty thousand buy my property is only worth four hundred thousand so they're expecting that the granny flat and the cost of the build is adding nothing in value to the property but that is not what we're finding at all and from anecdotal evidence from clients and from people who have built granny flats in Sydney as well as valuations that have been done on granny flats up here in South East Queensland the more common story that we're seeing is that granny flats tend to add value up to the build costs so for that 400,000 example which is obviously just a hypothetical example if we then add in a granny flat for one hundred and twenty bringing our total cost up to five hundred and twenty thousand what we find is that the valuations the bank valuations will actually come up to that five hundred and twenty thousand as well and then the market obviously responds to that product really well when selling because you've got that extra income stream for the property you can sell the property to and in so been the buyer's agent here from pumped on property recently sold a property with a granny flat and God I think it was over $50,000 more than he expected for the property and sold the property with the granny flat on it so granny parts obviously stay on one title but the evidence really isn't there to say that granny flats don't add any value to your property that you're spending money on this build and you're getting no value in return so part of the reason we love granny flats so much is that they do offer value up to the build cost so you're spending one hundred and twenty thousand you effectively adding one hundred and twenty thousand dollars in value or it's just canceling itself out there and that way any positive cash flow you get on top of that is cream for you and obviously if you can pay that down over time you've now got a more valuable asset and you've been able to pay it off quicker because you've got that extra income from a granny flat so do granny flats add value from the evidence that we can see in the market from sales of Ben's property as well as clients properties as well as valuations of prope...
https://www.youtube.com/watch?v=L8fCkR1L_7M
In society we are taught that making financial mistakes is stupid and if you make financial mistakes you must be dumb, but this is completely untrue. It's ok to make financial mistakes and financial mistakes are some of the best ways to learn and grow your wealth.
0:00 - Introduction 0:22 - Robert Kiyosaki lost $100,000 of his dad's money 2:31 - We are taught that finances are logical 3:23 - We aren't taught about money in school 4:30 - We shy away from talking about our financial mistakes, but they can be our best opportunities for learning 5:50 - It's ok to make financial mistakes 6:40 - Don't make yourself feel stupid for your financial mistakes 8:00 - If you're not making mistakes are you pushing yourself hard enough? 8:30 - One of my biggest financial mistakes and what I learned 10:36 - The emotions of mistakes accelerate our learning 12:20 - Realise mistakes WILL happen, it doesn't make you stupid
Fake by Robert Kiyosaki
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Transcription:
in society were taught that making financial mistakes is stupid and if you make financial mistakes well you must be done but that is completely untrue in this episode I want to talk about why it's okay to make financial mistakes and why financial mistakes can be a big part of your learning journey towards growing your wealth I've recently been reading the book fake by Robert Kiyosaki and in that book he shares something that he hasn't shared in any of his other books and I've read almost every single Robert Kiyosaki book that has been published and he talks about back in the day when he started his nylon velcro wallet business he was having a lot of trouble with that business basically he was going out of business and he went to his rich dad to ask for money his rich dad wouldn't give him the money so he went to his poor dad and his poor dad loaned him a hundred thousand dollars he then took that hundred thousand dollars to his CFO or chief financial officer at the company and said will this money fix our problem and the chief financial officer said yes it will and Robert then goes on to say that I think it was a week later the chief financial officer left the company and took the hundred thousand with him so the hundred thousand was used to pay back the debt that the financial officer had put into the company and then Robert was left a hundred thousand dollars in debt to his father and was in a situation where he didn't want to declare bankruptcy because that was a loan against his father's house so if he was to declare bankruptcy then his father would lose the house and it took him ten years he said to pay off that hundred thousand dollars so Robert Kiyosaki author of Rich Dad Poor Dad has made some significant mistakes in his life significant financial mistakes and he goes on to say that that was not the biggest financial mistake that he has made either and that financial mistakes are a massive part of learning I've just come back from the Sunshine Coast filming a lot of educational content up there with Ben Everingham from pumped on property staff looking at property stuff talking about the hard stuff that's going on in our lives as well as some more personal videos that I did by myself talking about my financial mistakes talking about the advice that I didn't take and the mistakes that I made and I've come to realize that we are taught in society that if you make these mistakes you must be stupid because obviously finances are so simple and so logical if that was actually true everybody would be rich it was actually true that it was really easy finances were really easy then everyone would be rich maybe this has come about in society because we often just look at finances as something that is purely logical and we as humans are emotional creatures and we act emotionally and so I guess maybe it's perceived that if you've made financial mistakes you haven't adh...
https://www.youtube.com/watch?v=v1AWRNdhnBI
The Australian property market is a very interesting space. What is currently happening on the ground in the Brisbane market. What do things feels like, what kind of deals are we seeing and what is the sentiment like?
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0:00 - Introduction 1:12 - What has been happening in Brisbane lately 2:49 - What pockets of Brisbane are doing well? 3:56 - Has there been a change since the election? 6:24 - How days on market and average vendor discount has been changing 7:46 - It is VERY suburb situational 8:52 - Brisbane doesn't feel like it's about to skyrocket 9:52 - Are really good discounts still available? 11:43 - More sophisticated investors are coming into the market 12:43 - Looking at some indicators and predictions for Brisbane 16:30 - Make sure you do your own research 17:10 - Some beachside suburbs are 15-30c on the dollar compared to beachside suburbs in Sydney
Transcription
the Australian property market is in a very interesting space where we've started to see some growth in capital cities lending has eased up it's a really exciting time at the moment and I often do reviews of how Australia is going but what I wanted to do today is actually look at how is the Brisbane market going talking to Ben Everingham who's the owner and a buyer's agent here over at pumped on property who helps people invest in the Brisbane property market so to talk about on the ground what things feel like how things are going because we can look at high-level statistics and averages for Brisbane as a whole but let's get more granular today and look at ok what's happening on the ground in the Brisbane market what kind of deals are we seeing what's the sentiment like and that sort of stuff so really excited to have this conversation today I love this stuff man this lets me get my cake on plenty then sprang out today yeah so Ben is an absolute stats nerd and loves working at that sort of stuff but also has himself and the team on the road talking to agents every single week inspecting multiple properties every single week purchasing multiple month for clients as well so really knows the prism market inside and out so what has been happening in Brisbane lately I guess leading up to the election and these changes and then now since RBA dropping interest rates lending getting a bit easier liberal obviously getting in how has that sort of change things so embracement at the moment we've made we've noticed a bit of a turn in sentiment it's nothing to go you know to the races we've tied thing it's nothing crazy but it is definitely a bit of a turn and as you said it's a result of Oprah relaxing lending policy and the big banks rolling that out it's a result of cheaper money it's a result of some helicopter stuff that's going on at a high level at the moment and it's just a confidence I suppose because for the first time in a year and a half or two years Sydney and Melbourne prices didn't decline this month you know at the same rate that they had been so it's kind of just slowly slowly people I think of realising that maybe some of the worst is behind us for at least this little pocket of the cycle so it's been really interesting looking at the Australian market so Brisbane didn't have the same run-up that Sydney and Mel been had but Brisbane has I guess been declining for the last few months and we're seeing that across Brisbane as a whole or their pockets where that's not the case or pockets where it's worse yeah so that's really good point because as we know there's no one market there's pockets and then suburbs within those pockets and straits but Brisbane as a whole is declined by to 2.9 percent in the last 12 months according to court logic but Brisbane is also cheaper to buy than it was in 2008 according to court logic right now like this think about that it's cheaper than it was before the last GFC but over the last 50 years it's done an average of 9.
https://www.youtube.com/watch?v=QIBa44ZHqco
A lot of people talk about 10 properties in 10 years but how many properties do you actually need to be financially free?
Resources Mentioned:
0-130 Properties in 3.5 Years by Steve McKnight
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2 Properties To Financial Freedom
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Transcriptions:
a lot of people talk about 10 properties in 10 years or obviously they're Steve McKnight's famous book of 0 to 130 properties in three and a half years but how many properties do you actually need to be financially free do you need 10 do you need a hundred and thirty that's all we're going to talk about in today's episode hey i'm ryan from on-property helping you achieve financial freedom and really excited to get down to the nuts and bolts of this topic to help you assess how many properties you actually need to be financially free because there's a lot of different things that changes how many properties you're going to need your investment strategy what the rental yield of that property is going to be as well as what income level you want to achieve in order to consider yourself financially free I like to think of two different income levels when it comes to financial freedom baseline financial freedom and that's the financial freedom where look I can get by I can live a pretty good pretty happy life but I don't have those little extra luxuries in life I don't have a lot of extra money to travel overseas every single year etc so you got baseline financial freedom we can just live a normal everyday life don't get your coffee once a day twice a day three times a day four times who's judging alright no one's judging you yeah you can live kind of a normal life on that baseline financial freedom so there's a few ways that you can look at this and a few ways you can calculate how many properties you need to be financially free and they're going to explain why Steve McKnight needed 130 properties and why you might only need two properties so 132 - they're obviously very different so let's get into it I think one of the best ways to understand okay how many properties do I need as a baseline to start with is to actually estimate owning properties without a mortgage so let's pretend you're investing today you're purchasing properties you're going to go principal and interest hopefully they're positive cash flow but over time you're going to pay those properties off and eventually you'll own those properties outright so how many properties would you need to know own outright in order to be financially free now depending on how much you want to be earning and depending on the rental yield other properties is going to depend on how many properties you need so let me get my phone out and do some calculations here so let's say we're gonna need a hundred thousand dollars in passive income in today's money now when we're looking at the rental income of a property they're still going to be some expenses in there okay we've got insurances council rates property manager fees etc so generally you'd want to calculate about twenty to thirty percent of that income for those expenses so a hundred thousand dollars let's say we're calculating twenty percent that's actually only eighty percent of the total rental income that we need so we need a bit more than that so that when we take out our twenty percent we're left with a hundred thousand that we can live off so to do that calculation we do a hundred thousand divided by eighty that gives us the total value of one percent and then times by 100 so that means we need one hundred and twenty five thousand dollars per year in rental income in order to achieve that hundred thousand dollars a year now let's go ahead and divide that by 52 because there's 52 weeks in a year that's going to give us a total amount of two thousand four hundred and three dollars and 85 cents so let's call that let's just call it two thousand four hu...
https://www.youtube.com/watch?v=gpMu925UWAQ
Is Australia primed for a season of growth in the Australian property market? Both Sydney and Melbourne had growth in the month of June and there are a bunch of positive change happening that may cause the market to grow:
Advanced Suburb Research Course
2 Properties to Financial Freedom Strategy
0:00 - Is the Australian property market primed for growth?0:55 - Australia as a whole declined by 0.2% in the month of June2:31 - A lot of positive changes have happened over the last couple of months3:59 - Monthly sales volume may have found a flaw4:34 - Auction clearance rates are trending upwards5:00 - Some key resources I have looked at over the month6:52 - Steve Keen's thoughts on the Australian market growing in the short term10:56 - Sydney property market update13:57 - Melbourne property market update14:33 - Brisbane property market update16:12 - NSW and VIC has the highest jobs growth and lowest unemployment rates16:48 - Adelaide property market update17:41 - Perth property market update18:42 - Hobart property market update20:11 - Darwin property market update22:24 - Canberra property market update24:02 - Tight credit conditions continue to dampen the market25:02 - Australian property market update summary26:36 - Have a clear strategy for property success in this market
Resources Mentioned In This Episode:
My Suburb Research Course
CoreLogic's National Housing Market Update | July 2019
The Australian Government Makes Investors Wealthy Over The Next 7 Years
Phil Andersons Predictions For 2019, 2020 And 2021
Australia is in a Recession
A Conversation With Steve Keen: Part One - The Debt Problem
A Conversation With Steve Keen: Part 2 - From Central Bankers To MMT
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Australian Property Market Update - June 2019
Transcription:
Ryan 0:00Hi, and welcome to my Australian property market update for July of 2019. And what I want to ask in this episode is, is Australia actually primed for a season of growth? Whether that be short term or long term growth? This is not a question that I thought I'd be asking this early in the year. Obviously, we've been seeing declines for over 18 months now. But Sydney and Melbourne actually saw some growth. And there's been a lot of changes happening in lending as well as in the government, that may be early signs that the market is primed for growth. So what we're gonna do in this episode, as we always do, is look at the data that corelogic puts out about the Australian property market, go into details in the cities and how they're going as well. And we'll also talk about some other helpful resources and helpful videos that I've watched over the month, which I'll link up down below. So looking at the nation as a whole, we can say that in the month of June, the Australian property market declined by 0.2%. Now, this was the smallest decline since back over here in March of 2018. So ever since December 2018, we've been seeing a slowing in this rate of decline, which I've been talking about. Basically, we need to see that decline needs to see it go to zero, in order to then start having positive growth and obviously, going to zero and having positive growth doesn't guarantee that that's going to continue forever. But that's a trend that we want to look for. And a trend that we are continuing to see now Sydney and Melbourne actually grew in the month of June, which is really interesting. And some other capital cities actually went backwards. And so it's interesting to see that as well. So we can see here the month a month change for the five largest capital cities. And you can see Sydney here grown by 0.1% and Melbourne growing by 0.2%. But you can also see Brisbane, Adelaide and Perth or declining in that same month. So what exactly is it that causes Sydney and Melbourne to rise when other capital cities like Brisbane, you know,
https://www.youtube.com/watch?v=ZqebNp67kxk
Today I want to show you what a 45 square metre 1 bedroom granny flat looks like. Come with me and have a look at the 1 bedroom granny flat and see what 45 square metres feels like.
2 Properties to Financial Freedom Strategy
0:00 -Introduction0:50 - Off street paring and side access1:15 - Coming into the lounge room and kitchen3:17 - Bathroom tour4:00 - Bedroom tour5:24 - What about the rentability of the property
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Transcription:
Ryan 0:00today i want to show you what a 45 square meter one bedroom granny flat looks like this is actually a dual income property so this is on quite a small piece of land around 400 square meters but they were able to build jewel occupancy with a three bedroom two bath on one side and a one bedroom one bath on the other side so in this video we're going to go through the one bedroom granny flat so you can see what 45 square meters feels like and looks like to live in and who is this actually going to appeal to hi i'm ryan from onproperty helping you achieve financial freedom on the road today with ben who is up there somewhere he is filming in the other house this is actually two blocks of land next to each other that a client was able to purchase in an existing suburb and built two of the same properties just with different different facades out the front so there is parking here as you can see behind me for the one bedroom that door is actually to the three bedroom for the one bedroom property we need to come around the side here so we have a small amount of side access down here and we have our clothesline here folding that actually raised up next door and it looks like they're doing a renovation underneath there so up and coming area here where people spending money so as you come in to this 45 square meter one bedroom place you can see that the lounge room is quite small okay we have enough room here maybe for a two seater lounge the plugs are there for the tv so i guess the tv would go there you could have maybe a small floating lounge or maybe a little lounge along here there's not a great deal of room in here these are really designed for one maybe two people to live in so but nice small space you also got this nice kitchen in the in the corner over here and so but still decent space in the kitchen size for a decent size fridge you've got a dishwasher you've got a sink with a draining tray here as well bit of bench space that you could use maybe put a look you've got room here for a microwave so that you've got more bench space for preparation so overall it's not a huge kitchen but it's definitely a lot of usable bench space so people can cook and do that quite easily actually feels really cozy and really nice i love tiny houses i love watching them on youtube and so kind of feels like that sort of tiny house feel feels very homely very nice so we also we have ceiling fans in the lounge room there as well as an air conditioning unit so up here in brisbane it gets quite hot i don't know why i have my sunglasses on but it gets quite warm up here especially in the summer and so having that aircon unit is very important especially given there's not really any outside space in this one bedroom unit so we've got the front door which goes on to that little sort of walkway way as we said but that's it there's no backyard or anything the backyard is actually allocated to the other side of the property so again as i said for young professionals or for single people who don't necessarily need a yard to kick a ball in because they're not kids we then come through to the bathroom and so really nice bathroom here obviously everything in here is brand new we have the boundary we have the shower we have the toilet here and then in the corner here we have our laundry area so there's the laundry basin and then there's enough room that to put in your washing machine and s...
https://www.youtube.com/watch?v=XduzJWKv_Fs
Do you need a rental guarantee when investing in property? Why can a rental guarantee actually be a really bad sign and what can you do to make sure your investment property is going to be rented?
0:00 - Introduction0:38 - Always look a rental vacancy rates - https://onproperty.com.au/vacancy1:19 - Why a rental guarantee is generally a red flag2:32 - What you should do when you see a rental guarantee
Transcription:
Ryan 0:00here i am today in brisbane about 12 kilometres from the cbd inspecting another property with granny flat potential as you can see room in the backyard there potentially for a granny flat so this is a really interesting one with already has car accommodation off to the side for a granny flat so all you need to do is add in a path which is what we absolutely love but in today's episode i want to talk about whether or not you need rental guarantees when investing in property and why if you see a property with a rental guarantee you should actually be really wary of that property and that should raise a massive red flag with you so when investing in property a really important thing to look at is the rental vacancy rate of an area this is really easy to find if you go to onproperty com au forward slash vacancy that will actually redirect you through to sqn researchers page where you can search the vacancy rates are different postcodes so you can find out how many properties are vacant in an area you can find out what percentage of the market is vacant myself as well as the team over pumped on property like to use 2% as a benchmark so you want a vacancy rate that is going to be under 2% which indicates that an area is chronically oversupplied so obviously a lot of people get really nervous when investing in property is my property going to be rented so they want to go with something that has a rental guarantee or there's a big illuma when there is a rental guarantee but i want to talk about why this can be a fool's errand and why this can be a red flag there's two general generally two types of properties you see with a rental guarantee the first one is defense housing australia so defense housing australia obviously can offer full rental guarantee basically the government will pay for your property to be rented the downside of defense housing australia is that sometimes the rental yields may not be up to market rate and also the property manager fees can be quite high on that compared to what you would generally find in the market the second and what i consider i guess the more risky rental guarantee is when you see it on a new build property or a house and land package property so when you're seeing one of them advertised and they're saying rental guarantee of 7% rental yield or however much per week they're the ones where you really want to double check your figures massively because that can be a red flag because if someone's selling you a development project with a rental guarantee that money has to come from somewhere they're not doing it out of the goodness of their heart and generally that money comes from the sales price so it comes from you actually purchasing the property so when you see those rental guarantees what you should be doing is a looking at the vacancy rates in the area which we've already talked about but be looking at comparable properties in the area so go on to realestate.com.au and look for properties for rent in the area and try and find a property similar to what the property would be once it's been built and see what they're listed for on realestate.com.au and what they're actually renting for because what you'll often find is that the rental guarantees that are provided are significantly higher than what you would actually get at current market rate so there might be a rental guarantee for one year or two years but after which that your rental income will drop significantly to what the actual market rate is and then i...
https://www.youtube.com/watch?v=M9qPG4FDbQA
Today I want to show you through a small dual occupancy property built on land just over 400 metres squared. One side is a 3 bedroom 2 bathroom home and the other side is a 1 bedroom 1 bathroom granny flat.
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0:00 - Introduction + property details1:19 - Walkthrough of the 3 bedroom side1:37 - Single car garage + laundry space2:01 - First bedroom + bathroom2:22 - Second bedroom2:47 - Master bedroom3:22 - Kitchen, dining and lounge space4:25 - Alfresco area + backyard5:33 - Walkthrough of the 1 bedroom side6:14 - Lounge and kitchen area6:46 - Bathroom6:55 - Main bedroom7:25 - Who is this property suitable for?
Transcription:
Ryan 0:00hi ryan here from on property and today we are going to do a walkthrough of a small jewel occupancy property so this is a property that the team on pumped on property help picked up for a client actually super interesting opportunity because the client actually got two pieces of land next door to each other in a suburb that is already established so as you can see as we look around ben's filming out there he's gonna film in the other place you can see the existing houses even next door you can see they've raised that up we're gonna do a renovation underneath there probably fill that in we've got nice houses next door so i think coming area here small blocks of land purchase for a round about the 300 and i think one was purchased for 361 was around 312 or 315,000 they got the build for around 240,000 which i think is much cheaper than what you would get at market value which i guess is one of the benefits of working with pumped on property is to have relationships with builders and so they're able to do that but all up you're looking at each property around about that $550,000 mark to get to income so this clients got four incomes from the two properties we're actually the first people here so it's just been finished she's the keys have just been handed over and so we're going to do a walkthrough so what we'll do is we'll start with the three bedroom i'll walk you through and see if we have done a full walkthrough of the other property talking about the numbers and everything but i just thought you might want to see what a dual income property looks like for people who haven't watched that video so as we walk in we walk into the single single car garage here and something about this is that they wanted to maximize space so we've got our laundry here tucked away in the garage so still able to have a laundry but it doesn't really impede on much of the rest of the house as we went through here we've got our linen press and storage and then we come through this hallway into one of the bedrooms as well as the main bathroom for the house so we've got a separate toilet as well as shower vanity and a bath in there so families obviously love having a bath in the property and so we've got that in there novak in the en suite which you'll see we then come into the second bedroom here and something that ben was saying in the previous video is when you're doing these new builds you really do want to have the bedrooms be over three by three meters squares i think this one's slightly bigger than three by three and then all these bedrooms have built ins as well so there's the first bedroom second major was still coming down the hallway towards the kitchen and the lounge area but that's when we come into our master suite here now this is nothing extravagant as we said this is a small block of land 400 square meters there are limitations on how much of the land you can actually build on that as you can see it's just quite a reasonable size main bedroom enough room for a queen size bed in there but not a lot else and then we have a walk in row as well which is very desirable and then we have a really nice own suite here with a shower vanity and the toilet there and so that's the three bedrooms then we come through to t...
https://www.youtube.com/watch?v=py5RvAHu91c
Welcome to my Australian property market update for June of 2019 where we dive into the housing data as well as look at the news and things that may have an effect on the property market.
2 Properties to Financial Freedom Strategy
0:00 - Introduction0:53 - Major changes that have happened4:00 - Looking globally4:46 - Potential global recession looming6:33 - Let's jump into the data. Dwelling values down 0.5% last month8:03 - Sydney is declining faster than Melbourne - -0.5% vs -0.3%8:34 - Monthly changes of the capital cities9:53 - Changes from peak of the capital cities11:00 - It's been 19 months of national decline11:43 - Transaction numbers remain lower than average12:46 - Rental growth continues to slow14:15 - Rental yields are growing significantly15:16 - Day on market are currently dropping15:57 - Monthly value or new finance commitments are trending downways16:40 - Lowest cash rate since the 1960's17:15 - Percentage of interest only loans has plummeted since 201718:02 - Sydney housing data20:22 - Melbourne housing data21:08 - Brisbane housing data23:05 - Adelaide housing data23:58 - Perth housing data25:48 - Hobart housing data27:25 - Darwin housing data28:43 - Canberra housing data29:54 - Do I think the bottom has hit?
2 Properties to Financial Freedom Strategy
Martin North + John Adams YouTube
Martin North's YouTube
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2 Properties to Financial Freedom
Transcription:
Ryan 0:00hey you amazing humans and welcome to my australian property market update for june of 2019 where we're gonna dive into some of the data behind the australian housing market look at what's happening in the current market as well as what are some of the changes that have taken place which could affect the property market and property prices so if you're looking at investing in property or if you've already invested in property it's very important to keep your finger on the pulse and this will help you do that obviously i don't have a crystal ball i'm looking at the data just like you are not a fancy economist or anything like that but i'll look at it see what i can learn from it see what trends we'll be watching you can follow along and obviously make your own assumptions from the data this isn't financial advice but this is something that i love to do each and every month to keep on top of things so without further ado let's talk about some of the recent changes that have happened in australia which could affect the property market it's pretty rare that we have this much news and one monthly update but we did just have the federal election and obviously liberal got in or liberals stayed in labor did have some proposed changes to negative gearing for purchases of existing properties or new purchases of existing properties to basically remove the negative gearing benefits in that as well as reduce the capital gains tax discounts for investors as well so this was seen to likely have a negative impact on the australian housing market and so given that liberals got in that is now out the window and not going to happen at least for this term of government so that has definitely put confidence back into the market in terms of investors just not having that potential negative coming through liberal have also offered a new first homebuyers scheme where first homebuyers can purchase a property with just a 5% deposit but how much this is going to affect the market is pretty unclear because it is limited to just 10,000 people per year i believe and those borrowers still need to actually be able to qualify for a loan so not sure exactly whether or not this is going to have a positive impact of that definitely doesn't seem to be like a negative we've also got some changes with apa and how the banks assess people for loans so previously banks would look at people at a 7.25% interest rate i think it was and to say can ...
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When you're passionate about something you will take the time to learn about it which will make you a better investor. If you're not investing with passion you're wasting an incredibly valuable resource.
0:00 - Introduction0:34 - What makes you passionate when it comes to investing?1:30 - Brandon's passion for stocks vs my lack of passion for stocks3:10 - Investing in a lifetime game and passion will drive amazing results6:44 - Why passion can be more important than logic
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A buyer's agent can help you secure a better property than you could invest in on your own. But should you get a buyer's agent or are you better off saving your money and investing on your own?
Free Property Strategy Session - https://onproperty.com.au/session
0:00 - Introduction 1:26 - I used to be anti-buyer's agents. Here's why I now believe buyer's agents are worth the investment 3:36 - Do you want to do it all yourself? 4:22 - Do you need someone to hold your hand and point you in the right direction? 5:44 - A buyer's agent can also act as a coach 6:26 - Can you actually afford it? 7:49 - What is their strategy and does it line up with your goals? 10:00 - Ultimately the decision is up to you
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When investing in property, especially during turbulent times, it's really important that you look to minimise your downside risk. Here's 10 ways to reduce your risk when investing in property.
2 Properties To Financial Freedom - https://onproperty.com.au/2properties
0:00 - Introduction 1:19 - #1: Time the market 2:27 - #2: Don't rely on capital growth alone 3:43 - #3: Have a clearly defined strategy 4:57 - #4: Buy under market value 6:05 - #5: Manufacture growth 7:32 - #6: Positive cash flow properties 8:35 - #7: Know how you're going to make money 9:56 - #8: Have buffers in place 11:07 - #9: Buy in stable metro markets 13:00 - #10: Own your properties outright
Advanced Suburb Research Course - https://onproperty.com.au/suburb
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A recent article by CoreLogic suggests that in most cases you shouldn't pay the asking price for a property as over 75% of properties sold in Australia sold for below their asking price.
0:00 - Introduction 0:30 - 75.6% of properties sold for less than their asking price in the last 3 months 1:45 - What about in individual capital cities? 4:24 - Market value is much more important than asking price 5:24 - How to find the exact vendor discount for individual suburbs 7:44 - Look at the average vendor discount as well as the trend in the discount
Location Score - https://onproperty.com.au/score
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In this Australian property market update we see Australia is still in wide spread decline but there are surprisingly positive signs that I didn't expect. We also talk about some of the larger economic factors at play.
0:00 - Introduction 0:37 - The rate of decline continues to slow 1:55 - Monthly value of new housing finance commitments increased 2:40 - Every capital city reported a decline with the exception of Canberra 5:05 - Sydney market update 6:35 - Melbourne market update 7:54 - Brisbane market update 9:45 - Adelaide market update 10:25 - Perth market update 11:14 - Hobart market update 12:41 - Darwin market update 13:55 - Canberra market update 14:30 - Rents have grown 0.3% nationally over the past 3 months 15:38 - Total listings remains high, but new listings are down significantly 16:32 - Other economic factors - Mortgage rates, loan approval process, election + economy 18:17 - Australia's private housing debt bubble and a bleaker view of the future 20:10 - Still a turbulent time in the Australian property market
Is Brisbane cheaper than it was 10 years ago? - https://www.youtube.com/watch?v=U_dJqIADBJ8
In The Interest of the People YouTube Channel - https://www.youtube.com/channel/UCzwmB2wn8Slp3hko2Gpj2iA
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My Interview with Steve Keen (2015) - https://www.youtube.com/watch?v=brX18YrTPTY
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My focus for May continues to be debt reduction. In this episode I talk in more detail about my debt reduction, my travel plans for May as well as how to minimise risk when investing in property in the current market.
0:00 - Introduction 2:06 - Where I'm Living and Debt Reduction 7:01 - My May travel plans 10:33 - I'm excited to go back up to the Sunshine Coast 11:50 - Still redlining in terms of cash flow, trying to build up a buffer 13:21 - The upcoming recession and how we can profit from it 23:48 - The Cash Flow Quadrant and improving my businesses 30:41 - Property market update and investing ideas for the current market
Walk The World YouTube Channel - https://www.youtube.com/channel/UCKWDscRjYFTD1KHsmow4-bQ
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Last week I talked about things I don't spend money on, this week we are flipping it and looking at things I do spend money on that maybe I shouldn't
0:00 - Introduction 0:55 - #1: Coffee 1:47 - #2: Alcohol 2:42 - #3: Private Schooling 3:47 - #4: Interest on Debt 4:21 - #5: Child Support 5:01 - #6: Take Out 6:11 - #7: Books and Audiobooks 7:25 - #8: Going Out 8:05 - #9: Travel 9:30 - #10: Kids Clothes
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Welcome to my Australian Property Market Update for April 2019, where I look at some data from CoreLogic's monthly update and draw out some insights from the data points.
0:00 - Introduction 0:45 - National rate of decline is continuing to slow 1:58 - Decline is now across more capital cities 2:43 - National dwelling values down 7.4% since peaking 4:12 - Change in dwelling values from market peak 5:08 - Sydney property market update 5:39 - Melbourne property market update 6:05 - Trends in time on market and vendor discount 7:23 - Brisbane property market update 8:16 - Adelaide property market update 8:46 - Perth property market update 9:20 - Hobart rate of growth now slowing 10:54 - Darwin property market update 12:53 - Canberra property market update 13:16 - Major factors affecting the current downturn 14:12 - New lending continues to decline 15:19 - Interest rates likely to get cut this year, but not help the market as much as previously 16:20 - There are a lot of factors that will affect property prices
CoreLogic April 2019 Market Update - https://www.youtube.com/watch?v=fSiwqtpimLM
Martin North (Walk The World) YouTube - https://www.youtube.com/channel/UCKWDscRjYFTD1KHsmow4-bQ
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There are a lot of things I don't spend money on now that I am aggressively paying off debt. Here are 15 things I don't spend money on.
0:00 - Introduction 0:44 - #1: New Phone Upgrades 2:11 - #2: Meat 2:50 - #3: New/Expensive Cars 3:41 - #4: Gym Memberships 4:20 - #5: Cigarettes and Drugs 5:16 - #6: Expensive Restaurants 6:15 - #7: Convenience Food/Drinks 7:17 - #8: Brand Name Clothes and Fast Fashion 8:37 - #9: Kid's Toys 9:39 - #10: New Tech/Gadgets 10:33 - #11: Collectors Items 11:20 - #12: Gambling 12:12 - #13: In-App Purchases 13:05 - #14: Cryptocurrency 14:00 - #15: Rent
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I make a full time income online, most of which is passive. Here are the 8 different ways I actually make money online. These are my 8 major income streams.
0:00 - Introduction 1:04 - #1: Website Advertising 1:57 - #2: YouTube Advertising 3:19 - #3: Amazon Affiliates 4:46 - #4: Other Affiliates 5:35 - #5: Recurring Affiliates 6:55 - #6: Referral Fees 7:52 - #7: Ebooks 8:48 - #8: My Own Courses 9:58 - #9: My Own Software 10:51 - #10: Membership Website 11:17 - #11: Email Subscription Service
My daughter just started her own website to make money online and published her first article about how to stop prismacolor pencils from breaking. If a 12 year old can make money online so can you.
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Those who aren't prepared for a recession tend to get hit the hardest. Here is how I am preparing for a recession and how you can too.
We haven't had a global recession since 2008 and Australia hasn't gone through a recession in 27 years but recessions are a part of life and do happen on a regular basis, so it's important to be prepared it when it does come so you life isn't adversely affected.
0:00 - Introduction 1:00 - The inverted yield curve and the high chance of a recession 2:15 - #1: Pay Off Debt 3:42 - #2: Keep Your Expenses Low 5:10 - #3: Look For Ways To Earn More Money Now 6:33 - #4: Diversify Your Income Streams 7:41 - #5: Build Up A Buffer Fund 9:51 - #6: Manage My Liquidity 11:10 - #7: Invest In Assets That Generate Cash Flow 13:12 - #8: Have a Backup Plan in Place
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Most of us don't start out life with a silver spoon in our mouth. If we are going to become wealthy we have to do it ourselves. So how do you create wealth when starting from scratch?
0:00 - Introduction and my story 3:09 - #1: Accept yourself and your situation 4:31 - #2: Ask yourself "Why am I broke?" and what are some of the bad habits you have 6:35 - #3: Commit to a growth journey 7:42 - #4: Set your short and long term goals 10:11 - #5: Create some short term financial stability 12:18 - #6: Do more than what the average person is doing 13:41 - #7: Stop living pay check to paycheck 14:31 - #8: Educate yourself massively 15:51 - #9: Look for solutions in your life, not problems 18:38 - #10: Reduce liabilities and increase assets
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There are some books that have massively changed my life. I have read them and they have caused me to go down hugely different paths than what I expected. I love these books and these are so important to me. I'm excited to share them with you.
0:00 - Introduction 1:27 - Linchpin by Seth Godin: https://onproperty.com.au/linchpin 3:55 - Retire Young Retire Rich by Robert Kiyosaki: https://onproperty.com.au/retireyoungretirerich 4:59 - The 4 Hour Work Week by Tim Ferris: https://onproperty.com.au/4hourworkweek 6:11 - The Lean Startup by Eric Ries: https://onproperty.com.au/theleanstartup 7:23 - Crush It by Gary Vaynerchuk - https://onproperty.com.au/crushit 10:11 - The Way of Kings by Brandon Sanderson - https://onproperty.com.au/thewayofkings 11:32 - BONUS: Skyward by Brandon Sanderson - https://onproperty.com.au/skyward 12:26 - Peak by Anders Ericson - https://onproperty.com.au/peak 14:33 - Brain over Binge by Kathryn Hansen - https://onproperty.com.au/brainoverbinge 16:41 - Good to Great by Jim Collins - https://onproperty.com.au/goodtogreat 18:26 - The Ethical Slut by Janet W. Hardy and Dossie Easton - https://onproperty.com.au/theethicalslut 19:41 - Love Wins by Rob Bell - https://onproperty.com.au/lovewins
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There are a bunch of behaviours that if you do them you will stay poor. They will keep you down in the dumps and keep you broke. Here are 30 behaviours that will keep you poor.
0:00 - Introduction 1:13 - #1: Do not look at your finances 2:31 - #2: Spend unconsciously 4:40 - #3: Focus on how things will make you happy 6:19 - #4: Have credit cards, car loans and personal loans 8:11 - #5: Increase your monthly subscriptions 10:03 - #6: Don't educate yourself 11:30 - #7: Have short term thinking 12:29 - #8: Assume everything will continue to get better financially 14:10 - #9: Blame other people for your financial problems 16:07 - #10: Don't have long term goals or plans 17:16 - #11: Don't invest 18:48 - #12: Make bad investment decisions 20:15 - #13: Buy lottery tickets 22:04 - #14: Only save what's left over 23:39 - #15: Buy things you don't need 25:21 - #16: Keep up with the fashion trends 26:35 - #17: Spend money you don't have 27.47 - #18: Buy everything brand new 28:28 - #19: Accumulate bad debt 29:58 - #20: As you earn more money increase your lifestyle 31:44 - #21: Keep your debt out of sight out of mind 34:04 - #22: Only look for problems in your life, not solutions 35:13 - #23: Don't try to earn more money 36:28 - #24: Surround yourself with poor people 38:07 - #25: Try to save your way to financial freedom 39:23 - #26: Don't have a budget 41:23 - #27: Don't pay off the bad debt in your life 42:30 - #28: Believe rich people are evil 43:52 - #29: Try to impress people with your money 45:04 - #30: Have a scarcity mindset 46:39 - Summary
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Transcription:
Ryan 0:00there are a bunch of behaviors that if you do them you are more likely to stay poor these behaviors keep you down in the dumps they keep you broke and they stop you from moving towards your financial goals towards financial freedom towards building wealth and i myself have been guilty of many of these behaviors in the past and even some of them now so in today's episode we're going to look at 30 different behaviors that are keeping you poor hi i'm ryan from onproperty com au helping you achieve financial freedom and what i want you to do is as we go through this list i want you to think about does this apply to your life are you implementing this behavior is this behavior keeping you poor and do you need to shed this behavior in order to move towards financial freedom now some of you listening may have a whole bunch of these behaviors in your life some of you may only have one of these behaviors so it's up to you to determine which ones of these apply to you and then to systematically work on removing those behaviors from your life and replacing them with behaviors that are actually going to make you wealthy so without further ado let's get into it behavior number one do not look at your finances do not track your finances do not pay attention to how much money is left in your bank account just put your head in the sand close your eyes tap your card and just hope that there's enough money in your bank account to go through so rather than actually thinking about things rather than actually maintaining your focus on your finances seeing how much you've spent for the way just simply don't track your finan...
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Living paycheck to paycheck can be a really stressful way to live. When you're living paycheck to paycheck it feels almost impossible to pay off debt or invest and move towards financial freedom. So how can you stop living paycheck to paycheck so you can start achieving financial stability in your life?
0:00 - Introduction 0:55 - My story: I was living paycheck to paycheck but now I'm not 2:31 - Think of this in terms of cash flow 3:58 - Step #1: Assess Where You're At (recurring payments, debt repayments, living expenses) 7:20 - Step #2: Reduce Your Expenses/Liabilities 10:50 - Step #3: Grow Your Passive and Earned Income
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Minimalism can help you live more consciously and more happily. Here are some ideas on how you can apply minimalism to your finances so you can set yourself up for a better financial future.
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0:00 - Introduction 1:06 - What is minimalism? 1:32 - How does minimalism apply to our finances (removing consumerism, simplicity, living consciously) 3:00 - Follow me on instagram https://instagram.com/ryanmaclane 3:20 - 10 Practical Tips For Applying Minimalism to Your Finances 3:27 - #1: Automate Your Finances 6:01 - #2: Having a Simple Budget 7:13 - #3: Spend Consciously 8:19 - #4: Just Buy What You Need 9:16 - #5: Just Pay With Cash 10:13 - #6: Have Meaningful Financial Years 11:58 - #7: Live With Gratitude and an Abundance Mindset 13:13 - #8 - Earn More Money 15:17 - #9 - Build Up a Buffer 16:05 - #10 - Stop Worrying About What Other People are Doing
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With an election due to come up shortly there are some proposes Labor are making to how negative gearing works when it comes to investment properties. Here are Labor's proposed changes and how they may affect you.
0:00 - Introduction 1:27 - What is negative gearing? 3:05 - Why in negative gearing such a big deal? 4:49 - What are Labor's proposed changes to negative gearing? 7:24 - What are Labor's proposed changes to capital gains tax? 9:18 - When will these proposed changes come into effect?
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This budgeting tool has really helped me prepare for my future and minimise my overwhelm and anxiety and manage my finances. That is a cash flow calendar.
What is a cash flow calendar and how can you use one in your life?
0:29 - What is a cash flow calendar?1:40 - How do you create a cash flow calendar?3:27 - What to do once you've created your cash flow calendar5:34 - How this helps relieve my anxiety and prepare for my future
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Transcription:
Ryan 0:03hi ryan here from onproperty.com.au helping you achieve financial freedom in today's episode i want to talk about a budgeting tool that has really really helped me over the last couple of months to prepare for my future to minimize my overwhelm and anxiety and just really helped me to manage my finances and that is a cash flow calendar so in this episode i'm going to talk about what a cashflow calendar is and how you can use one in your life so what is a cashflow calendar uh well it is basically what it sounds like it's a calendar of the year where you map out your cash flow so you map out your incoming income and you map out your outgoing expenses as well so as you'll know that there are things throughout the year that you don't have to pay every single week or every single month but you have to pay them in one lump sum maybe once a year maybe twice a year whatever it may be so something like car registration is a perfect example where it tends to come around once a year for most of us you can do it six months as well and if you're not expecting this and you get hit with a bill for car registration or for health insurance or for whatever it may be and you haven't put the money aside then that can put you in a really difficult financial position so taking the time to create a cash flow calendar has been really useful for me both with my expenses as well as my plan to pay off debt and can be really useful for you as well so how do you create a cash flow calendar well for me what i did was i jumped into excel and i created an excel document i actually use google sheets because it's free and easy to use and i can access it from any website i mean from any computer and so basically go into google sheets and i would create the 12 months of the year and then down the column the first column i would just list all my major expenses so i would list my car registration i would list car insurance health insurance i would also list monthly expenses as well so like internet and my phone bill quarterly expenses like electricity and gas bills as well as something that you would put in there and then for me as well i also listed my debt repayment so when i have to pay back certain debts when i have to pay interest which is monthly as well as when i have to pay the full amount of particular debt as well so basically i took the time to map out across the entire year what all of my major expenses will be as well as what my ongoing expenses are so things like i have a weekly discretionary budget so i have a certain amount of money that i give to myself each week that i can spend on things like petrol food going out etc i put that into the cash flow calendar as well as a monthly figure so basically i spend the time to map out my entire year and that gave me totals for each and every month as well as totals for the entire year and that then allows you to prepare for the coming months so if i can see that this month i don't have many expenses and i've got a bit of extra money but i know that registration is coming up in four months time then i can prepare for that and say okay do i have enough money to pay for registration and so once i've created my cash flow calendar what i then do is look at all of my major expenses and look at how much do i need to save in order to be able to pay for those expenses so i put it i put them all into a chunk that i call bi...
https://www.youtube.com/watch?v=_ezxHQ7irSY
Recessions are a part of life, economies go up and they go down. Investing in property during a recession can be either the best of worst time to invest. Here are 13 tips to minimise your risk and maximise your chance of return during a recession.
Book a free property strategy session
0:00 - Recessions are a part of life 1:38 - #1: Focus on Bread and Butter Properties 2:39 - #2: Look for Positive or Neutral Cash Flow 4:15 - #3: Invest in Something with Short and Long Term Rental Demand (Vacancy Rates Below 2%) 5:20 - #4: Invest in Markets That Haven't Peaked Yet 6:27 - #5: Invest in Suburbs and Markets With Long Term Demand 7:24 - #6: Have a Long Term Strategy 8:08 - #7: Don't Over Leverage Yourself 9:10 - #8: Buy Below Market Value 10:54 - #9: Buy a Property With The Potential To Manufacture Growth 12:02 - #10: Build a Strong Buffer Fund 12:30 - #11: Manage Your Property Well and Maximise Your Return 13:19 - #12: Boost Your Cash Flow 14:50 - #13: Avoid More Speculative Investments 15:42 - 13 Ways To Reduce Your Risk and Maximise Your Chance of Return
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Going from nothing to financial freedom through property investing can be quite an overwhelming task. Breaking it down into the different stages of the property investment journey can be extremely helpful. Here are the 4 stages of property investing.
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0:00 - Introduction 1:00 - The 4 stages summary 1:37 - The 2 Properties to financial freedom strategy 3:18 - Stage 1: Buy Properties 5:32 - How to know when you've finished stage 1 7:20 - An example based on today's market 8:29 - Stage 2: Pay Off Debt 9:02 - 2a. FAST Strategy - How to pay off debt fast 11:15 - 2b. SLOW Strategy - Enjoy life while the properties pay themselves off 13:49 - Dave's success story 15:56 - Stage 3: Freedom 23:38 - Stage 4: Wealth Creation 27:01 - Summary 28:25 - This can really accelerate your financial freedom 30:01 - Get help implementing this strategy in the right market
Learn more about the 2 properties to financial freedom strategy
Ikigai: The Japanese secret to a long and happy life
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2 Properties to Financial Freedom: Quickly Explained
Transcription:
if you're looking to achieve financial freedom by growing a property portfolio it can be quite a daunting and overwhelming task to go from nothing or just owning your own home to actually grow in your portfolio and achieving financial freedom and we find it much simpler and much less daunting if you actually break down the journey into the different stages of the property investment journey or the property investment cycle so today I'm joined by Ben Everingham who's a buyer's agent from pumped on property how's it going Ben hey man how you doing very good and we're gonna talk about the four stages of property investing so this is in line with our two properties to financial freedom strategy if you haven't checked that out go to onproperty.com.au/plus two properties and you can learn all about that over there but the goal here is that we're going to invest in what we call foundational properties that are going to then go on to deliver us financial freedom or deliver us a financial position where we can actually live off the rental income that those properties are generating so the four stages are property investing to outline them quickly is stage one which is buy properties which we're probably going to spend most of the time on stage two which is pay off debt which you can do to which you can choose to do quickly or slowly Stage three is freedom or financial freedom that's where you get to live off the rental income and gain choices in your life and then stage number four is wealth creation now that you're financially free you can focus on building your wealth becoming rich whatever it is that you decide to do so do you want to talk quickly about the two properties to financial freedom strategy Ben and then we'll get into stage one about buying the properties yeah so the concept of two properties to financial freedom I think you came up with that idea while you having served on the Sunshine Coast and you gave me a call after and I kind of wish I've known about it ten years before I got started because of all the ups and downs and mistakes that I've made as an investor on my journey and effectively the strategy is simple and it's about owning a couple of good quality low risk low maintenance homes completely outright in the future so that that passive income stream provides you with surplus income and allows you to have better quality choices in your life you know down the line wheth...
https://www.youtube.com/watch?v=CuLnACEGVK0
The 4 Disciplines of Execution is a great leadership book to help businesses achieve goals but I actually found this extremely useful in my personal life. In this book review I discuss the key ideas in the book and how you can apply them to your life
The 4 Disciplines of Execution (on Amazon)
0:00 - Introduction 1:25 - The 4 Key Concepts in the Book 2:19 - #1: Wildly Important Goals 3:10 - The Whirlwind in your life 3:54 - #2: Lead Measures (Things You Do) 6:02 - #3: Create an engaging scoreboard 8:29 - #4: Keep Accountable 9:10 - Summary of the 4 Disciplines of Execution
Transcription:
I recently read the book the four disciplines of execution which is ideally a business leadership book to help people who run businesses and run teams to get the company and the teams to implement strategies to achieve goals but I actually found this book extremely useful in my own life of my small one-man operation in terms of my business as well as applying to my own personal finances as well so in this episode I want to do a review of the four disciplines of execution talk about the key concepts in the book and more specifically talk about how you can apply them to your everyday life and your own personal goals this book was extremely valuable and came at the exact right time when I needed it in my business as you may know I have been in debt lately I'm currently paying that off and I'm working towards growing my passive income quite significantly ideally over the next couple of years but staying focused on that when I do work that doesn't have a payoff for 6 or 12 months is very important and this book really provided a framework for doing that a framework for staying on track and a framework for getting motivated so let's have a look at the key concepts in this book and then I'll suggest some ways that you may be able to apply them to your own life and your own personal finances in order to move towards financial freedom so the book really has just four key concepts so the four disciplines of execution and they are the first one is to create wildly important goals so just having one or two goals per year that you're focusing on not even per year just one or two goals then you're focusing on which ultimately have a deadline so I'll break all of these down in more detail but first I'll just summarize them so set one or two wildly important goals create lead measures so have things that you do that result in lag measures or that result in results that are in line with your goals the next thing is to have an engaging scoreboard to track your results and then lastly keep yourself accountable or have weekly meetings if you're running a team so there the four disciplines while the important goals lead measures engaging school board and keeping accountable so let's go through them in more detail the first section talks about wildly important goals so these are the most important goals in your life or in your business that you are focusing on these are the things that are going to move the dial that are going to change the business or the company or change your personal finances so for me for business it is about growing the level of my passive income in the business and so there's two different aspects of that so I have two different goals or wildly important goals that I want to achieve this year that go across two different online businesses that I have so they might do while the important goals in my personal life my wildly important goal is to pay off all my debt ideally by the end of 2019 so by the end of this year pay off all my debt so I've got my wildly important business goals and my wildly important personal goals the book talks about the thing called the whirlwind which is basically there's activities in your life and in your business that you need to do just to keep things operating so there's emails you need to respond to reports that need to go out things that you hav...
https://www.youtube.com/watch?v=hK_M0PgvF14
I've learned a lot about money management in the last year and have improved my skills in the area substantially. Here's some ideas on how I have gotten better at managing money and how you can too.
0:00 - Introduction 0:31 - 1 Year Ago Today (0:43….add video) 1:10 - I'm not actually 'broke' 2:06 - #1: Being completely focused on my money and constantly looking at it 3:07- #2: Creating a cash flow calendar 4:25 - #3: Remain as frugal as possible 5:20 - #4: Find ways to achieve more with less 6:25 - #5: Building up cash buffers in my life 8:09 - #6: Working really hard to build up my passive income 10:35 - The biggest thing has been focus 10:52 - Something I really need to work on 11:26 - I've come so far in the past year
How I Got Myself Into Debt
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I Need To Get Better At Managing Money (March 2018)
Transcription:
almost exactly one year ago I decided that it was time finally time to get better at money management and I've learned a lot over the past year and learn a lot especially over the past couple of months so here I want to talk about how I'm getting better at money management and some of the things that I've learned hi i'm ryan from onproperty.com.au/free angel' freedom and welcome to another quick money Monday where we talk about things around money now it was almost a year ago to the day I'm recording this on the 27th of March it would go out early April but on the 26th of March 2018 I published a video that says I'm working or I'm looking to get better at managing money so I'll link that up down below or you can go to onproperty.com.au/mortgage 493 to check that out but I really feel like over the past year despite the situation that I'm in now I have learnt a lot about managing money I've made some major improvements in my life and I'm so much better at managing money now than I was in the past now if you've been following me for some time you'll know that I'm in debt currently working my way out of debt that I'm saying with family to reduce my expenses but I just kind of want to put the disclaimer out there that I'm not actually broke so yes I have debt to pay off yes I'm currently living with my family to save money but I've still actually got a solid passive income in my life that if it wasn't for the debt in my life I would likely still be financially free or very close to it and I'm actually working on growing my passive income at this point in time as well so money management has been a massive issue in the past as well as obviously things that happened in life if you want to find out how I got into debt then I'll link up to that down below but yeah so money management has definitely been my issue and you know added to the fact that I got into debt because I didn't build up my buffer funds and things like that but I'm really working on it so in the book Rich Dad Poor Dad he talks about this idea of minding your own business and basically treating your own life and your own finances as a business and paying attention to it and so the biggest way that I'm getting better and money management especially in the past couple months as I've really been focusing on smashing this debt is just being completely focused so really focusing on my money paying close attention to it and constantly looking at it that's the biggest thing and the issue that I had in the past being financially free or having pseudo financial freedom where you've got enough money coming in that you don't need to worry about expenses we're going to have it where we just didn't look at our finances because they tended to be enough money in there to pay for the things that we wanted to pay for so we didn't watch it closely so now I'm really focused and I'm constantly looking at it and I'm looking at my current position where I am now how much money I have now and I'm also projecting forward so I've gone ahead and cre...
https://www.youtube.com/watch?v=xa-pbubbzN0
The 2 Properties to Financial Freedom strategy is a property investment strategy that is fairly low risk and can allow you to set yourself up for financial freedom in as little as 2-5 years for most people. Here is the strategy quickly explained.
Book a free property strategy session
0:00 - Introduction0:30 - The 4 Stages of Property Investing1:13 - Stage 1: Buy and Build Properties3:42 - Rough figures of the foundational properties6:14 - Granny flats…that sounds weird?!8:11 - Stage 2: Pay Off Debt9:55 - Pursuing happiness without financial freedom11:33 - Stage 3: Freedom12:46 - Stage 4: Build Wealth14:00 - Quick summary
Transcription:
the two properties to financial freedom strategy is a property investment strategy that is fairly low risk and can allow you to set yourself up for financial freedom and as little as 2 to 5 years for most people now this doesn't mean you'll financially free after 2 to 5 years but you set yourself up so that you will be financially free in the future so in this video we're going to look at exactly how this strategy works hi i'm ryan from on-property helping you achieve financial freedom and this strategy is broken into the four stages of property investing so there's four main stages of this strategy the first stage is the buy and build properties stage so this is where you're purchasing properties and building granny flats acquiring what we're gonna call foundational properties the second phase is the pay off debt phase where you pay off debt the third phase is once your debt is all paid off then you have freedom and you can live off the rental income of your properties now a lot of people will want to stop here at phase 3 and go on to live a life that they love with freedom of choices but some people may want to go on to phase 4 which is wealth and building wealth in your life and becoming much richer so let's have a look at phase number one which is the buy and build stage so in the buying build stage this is where we're going to be acquiring our key properties that will deliver us financial freedom in the future we call this the work hard phase because this is where you're working hard to save your deposits to research markets to purchase properties to build granny flats this is where you're working hard and this stage you're looking at around two to five years for most people it can be shorter if you're in a really good position it can be longer as well if it takes you longer to acquire these properties so 2 to 5 years is a guideline for what a lot of people can achieve and as you can see that's a pretty short period of time compared to our lifespan so to work hard for just 2 to 5 years to set yourself up for financial freedom is definitely worth it in my mind but as I said it can be shorter or can be longer so the idea here is that we purchased two properties and we go ahead and build two granny flats this won't work with just any so we'll be looking at high quality metro markets because this is gonna be a long-term investment at the moment that's kind of Brisbane southeast Queensland to get the rental returns and the figures that we're talking about but that can be other places in Australia that allow you to build granny flats we're looking for places that have long-term demands so we don't want things like mining towns that'll boom and then busts within the next 10 years we want long-term demand for our properties we want to get capital growth if we can this strategy doesn't rely on capital growth but obviously capital growth can accelerate the purchase of new properties and it means that those properties are in demand and are likely to get rental growth as well we want to invest at the right time of the market cycle so we want to invest somewhere towards the bottom of the market so ideally we can then get some growth we want suburbs that are set for growth so we're looking at high-quality metro markets but we want the bes...
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Last week I got real and raw and talked about how I got into debt, now I'm looking forward and sharing exactly how I plan to achieve long term financial freedom. Get you free property strategy session - https://onproperty.com.au/session/
0:00 - Introduction 0:36 - What is unique about my circumstance that means I'll likely be financially free in 1-2 years 2:50 - Step #1: Build up my income (businesses) 4:19 - Step #2: Pay off bad debt and live conservatively 6:59 - Step #3: Invest in property using the 2 Properties to Financial Freedom Strategy 9:40 - Step #4: Focus on paying off debt on my properties and own them outright 11:18 - Bridging the gap between pseudo financial freedom and real long term financial freedom 12:18 - What I love about my strategy
Recommended Videos: How I Got Myself Into Debt - https://www.youtube.com/watch?v=0lHQ-7LjR0w How I Will Pay Off My Debt - https://www.youtube.com/watch?v=TPuX7B6BPFY
Transcription:
So last week I got pretty vulnerable with you and talk to about the myriad of things that caused me to find myself in the current situation that I'm in, where I'm in debt. So we looked into the past and now we're going to look into the future towards the plan that I have, the how I plan to achieve longterm financial freedom. And the goal here is that I'll take you on the journey with me so you can see as this adapts and changes as time goes on and whether or not I actually achieve this and get out of debt and go on to achieve the financial freedom. So what is the strategy in a nutshell? Well, something that's really interesting about my circumstance that's probably different from most people is that yes, I run my own business so I don't have a job. But the income that I earned from my business is still, the majority of the income is still passive income.
So it's income that I'm not working for. And so while I no longer consider myself financially free, as in a business doesn't generate enough passive income in order to pay my expenses. So I need to work the work that I do actually generate more passive income. So the work that I'm currently doing to grow my business is actually growing the passive income of my business. So what that means is that in a period of six to 12 months, not only will I be paying off debt, but I'll also be growing my passive income to the point where ideally in six to 12 months time, maybe 12 to 24 months time, I will achieve that pseudo financial freedom again. So I'll be effectively financially free through my businesses and they'll generate me enough income that I won't need to work anymore. Now, the decision that I made in the past when I was 28 and this happened in the past, was that I would stop working and then I would try and find what made me happy in life because I was very disillusioned achieving financial freedom and I didn't know what motivated me to work.
And I find I'm there in a very different situation. Now I work because I need to work. Yes. But I also know so much more about my internal motivations and what makes me happy. And so I know that when I achieve financial freedom, financial freedom is no longer the goal. Even longterm financial freedom is no longer the goal. The goal is to be present in my life and to enjoy the work that I do, enjoy the people in my life, enjoying my kids and my family. And that's what I do. And so my internal motivation is for consistent growth and consistent learning and that just tends to outwork itself through my business.
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Last week I talked about how I got into debt, now we are going to look forward at my strategy for achieving long term financial freedom…so I don't find myself in this situation again. Get a free property strategy session - https://onproperty.com.au/session/
0:00 - Introduction 0:33 - Step 1: Generate more passive income through my business 2:54 - All other steps are built off me growing my business 3:41 - But business is not a long term solution for financial freedom 4:21 - Step 2: Pay off debt 7:00 - Step 3: Invest in property using the '2 Properties to Financial Freedom' strategy 9:41 - Step 4: Focus on paying off the debt of my properties 11:18 - The goal is the set myself up for financial freedom as quickly as possible 11:53 - I'll focus on buying high-quality properties in metro markets
Recommended Videos: How I Got Myself Into Debt - https://www.youtube.com/watch?v=0lHQ-7LjR0w How I Am Going To Pay Off My Debt - https://www.youtube.com/watch?v=TPuX7B6BPFY
Transcription:
Hi and welcome to this Australian property market update for March, 2019 this is a new segment that I'm going to try it where we talk about how the Australian market is performing as well as talking about some key indicators in cities as well. So basically what we're doing in this video is going through some of the data that called logic of shared in their monthly update video. I will link to directly to their video down below so you can go ahead and check it out and collect that data yourself. But basically I've watched that and want to share with you some of the key insights that I got from looking at the data. Hey, I'm Ryan from on property, helping you achieve financial freedom. So obviously when you're investing supporting, then you understand where the market is at and the market has been declining for some time now, so you definitely want to be looking at it.
One of the first things that I notice from this market update was that yes, we saw a decline in February of the Australian property market, but the rate of decline is actually slowing and has been slowing for the last two months. Now, two months probably isn't long enough to look at that. We want to continue to see that trend. But as I mentioned with Ben Everingham in a previous video, when looking for the bottom of the market, you want to start to look for the rate of decline slowing. So what I mean by rate of decline? Well, if this shine property market drops by 1%, is that, did it drop by more this month or less this month than it did in prior months? So that's something that you want to look at. And as we can see that December I had the largest rate of decline December, 2018 and then January and February had less decline in those months.
So the market's still going backwards, but the rate rate of decline is starting to slow, which may indicate that we're going to see the bottom of the market sometime soon. I don't think there's happening right now. Uh, but it looks like if that trend continues, then we will start to flatten out and then see growth. So that could be within a month or two within six months or 12 months. We'll have to keep watching that to see the tire market, the entire market as a whole is down 6.8% since since have peaked in October, 2017 so that puts us back to the same prices that we saw in September, 2016 so that was about two and a half years ago. I was actually scaring through my site and I did find some footage of myself from February, 2016 talking about how the peak maybe slowing down,
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What are the key ideas/core concepts that make the '2 Properties to Financial Freedom' strategy different from other strategies out there? Book a free strategy session - https://onproperty.com.au/session/ Download the 2 Properties Cheat Sheet - https://onproperty.com.au/2properties/
0:41 - The basics of the '2 Properties to Financial Freedom' strategy 2:35 - Core Concept #1: These Properties Will Pay Themselves Off! 6:25 - Core Concept #2: You can set yourself up for financial freedom in a short period of time (about 2-5 years for most people) 9:33 - Core Concept #3: There is a clear path to financial freedom without relying on capital growth 14:13 - Core Concept #4: There are 3 key stages to this strategy (#1. Buy and Build Properties, #2. Pay Off Debt, #3. Freedom) 18:26 - Core Concept #5: You don't need financial freedom to gain choices in your life and pursue happiness 23:53 - Core Concept #6: You stop once you're financially free, you can build your wealth even more 27:10 - Core Concept #7: You can still buy you're own home 30:26 - Core Concept #8: You don't need to stop at just 2 properties 34:31 - Core Concept #9: There is a lot of flexibility in this strategy 37:00 - Get the cheat sheet https://onproperty.com.au/2properties/
Simon bought his first property: https://www.youtube.com/watch?v=HP376QV3qi4 Live strategy session with Ryan McLean: https://www.youtube.com/watch?v=TEx0-ZPQhco What it feels like to be financially free: https://www.youtube.com/watch?v=xVzvDkMpZ3k
Transcription:
I spoken a lot about the two properties to financial freedom strategy. And today I want to talk about some of the core concepts that you need to understand in order to make this strategy work. So we're going to spend a bit of time today looking at some of the key ideas that make this investment strategy different from other strategies and the key ideas that you need to wrap your head around in order to really understand the strategy and make this strategy work for you. So it's going to be a bit of a longer one today. So strap in, I hope you enjoy it. Hey, I'm Ryan from on-property dot com dot. A U helping you achieve financial freedom. And I've been talking for the last year about this two properties to financial freedom strategy. If this is the first time that you've heard it, the idea here is that you can set yourself up for financial freedom quite easily through investing in property.
Instead of having some fancy fandangled property investment strategy where you had to buy 10 properties in 10 years and sell some and keep some, the strategy is very simple and straightforward. The idea is you purchase two properties, two houses to be precise and on each of those properties you build to granny flats in order to get extra rental income in order to get a positive cashflow. What you then do is focus on paying off those properties and in fact those properties will actually go ahead and pay themselves off, but you can obviously work harder to pay themselves off, so you purchased the properties, build the granny flats, then you pay off the debt and once the debt is paid off and you no longer have to pay a mortgage, you then live off the rental income of those properties. Now I do apologize for the background noise.
I am filming it right next to a work site next door. They're building this I think five or six story apartment complex right next to where I am. So I apologize for the work noise in the background. Hopefully it's not too bad.
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How did I get into debt? What are the mistakes I made and the things that happened that led me into the not-so-great financial situation? Welcome to a super chirpy Quick Money Monday…not Book a Free Strategy Session - https://onproperty.com.au/session/
0:00 - Introduction 0:55 - Knowing where you're at now is so important 1:40 - At 28 I achieved "pseudo" financial freedom through my businesses 3:44 - We were in a position to buy a property on the Gold Coast but we were unhappy 4:15 - We decided to purchase a van and renovate it 5:16 - Our van life journey didn't go to plan which cost us more than expected 6:31 - We then decided to move up to Noosa 7:29 - Spent the next 18 months of so exploring happiness and dealing with mental health issues 9:00 - Finding happiness was actually quite difficult for me 9:36 - Mid-2018 I started getting passionate about work again 10:06 - Invested in (and lost money) in Cryptocurrency 10:40 - We didn't live frugally like we should have 11:15 - I then had a marriage separation 12:15 - That exact same time business went backwards significantly 13:00 - The perfect storm that I wasn't prepared for 13:58 - We decided to move down to Sydney 14:56 - How I got into the debt situation 15:45 - I'm now actively working out of debt 15:53 - Why wasn't I focused on achieving long term financial freedom? 16:51 - It wasn't just one bad decision that led to this
I Lost THOUSANDS in Cryptocurrency - https://www.youtube.com/watch?v=6msFDDC1mEo
Recommended Videos How I Am Paying Off Debt - https://www.youtube.com/watch?v=TPuX7B6BPFY Exploring Financial Freedom (Financially Free at 28) - https://www.youtube.com/watch?v=U-nNqja8gRU
Transcription:
Something, a lot of people don't like. Talking about myself included is the financial mistakes that we make and how we got into the financial mess that we occasionally find ourselves in. So in today's episode, a quick money Mondays, I'm going to do the very difficult task of explaining how I got into debt. This is something that a few of you have been asking in the comment section. How do I run a property channel and end up finding myself in a situation where I am now currently in debt? What happened? How did I end up in this situation? Yeah. So we're going to talk about that because this year I will be focused on getting myself out of this, getting myself in a strong financial position, strong financial position to go ahead and invest. But it all starts with the mistakes that we make in the situation that we find ourselves in.
When I did the free strategy session with Ben Everingham, one of the things that we've talked about is where you at now, it's really important to assess your current financial situation, which I have done. Um, and that's something that you guys will do if you go through a free strategy session. If you're looking to invest, you look at exactly where you now and you have to then assess the mistakes that you made in the past and the fact that you're not where you want to be. If you want to get a free strategy session to help you move towards financial freedom, got on property dot. Come to you and you can read more about it over there or I'll link out to the strategy session that Ben did with me, uh, down below. So without further ado, how did I get into debt? So to start us off by the age of 28, which is about three years ago now, I achieved what I call pseudo financial freedom.
Now I've actually always called it that. I've never called myself financially free. I call myself sooner.
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In this episode I go through some of the numbers behind the 2 Properties To Financial Freedom Strategy so you can get an idea of how the numbers could work out in theory. Book a Free Strategy Session - https://onproperty.com.au/session 2 Property Strategy - https://onproperty.com.au/2properties
0:00 - Introduction 0:41 - The basics of the strategy 2:28 - Looking at the basic cash flow of the strategy 6:34 - What sort of income can this create when fully paid off 9:14 - How long does it take to pay off these properties 12:53 - What's the rough annual income after expenses? 14:57 - What if you buy more than 2 properties?
Resources Mentioned in the Video: Property Tools - https://propertytools.com.au
Recommended Videos 2 Properties To Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y
Transcription:
We've talked a lot about the two properties to financial freedom strategy and in this episode I want to go through some of the nitty gritty and the numbers behind this strategy so you can see how it works in action. Hi, I'm Ryan from on-property helping you achieve financial freedom and if you don't know what to properties to financial freedom is, I'll quickly explain that before we jump into the numbers, but I have done a full video on it with Ben Everingham where we talked for about an hour. I will link that up in the description down below or you can go to on property.com.edu forward slash two properties to check out that episode. But the basis of the strategy is that you purchase two houses. These houses costs about $400,000 each and they rent for about $420 per week each on those houses. You then build to granny flats that costs $120,000 each and rent for about two 80 per week.
So all up you've invested $520,000 per property and each property has two incomes renting for a total of $700 per week. Or if you combine the two together, then you're looking at 1 million and $40,000 renting for 1400 per week and the goal here is to get you to a baseline of financial freedom in the next 15 2025 years. So we're going to have a look at the numbers behind this, see whether or not this works so you can work out whether or not you think this strategy is going to be right for you. I think it goes without saying that this is not financial advice. We're going to be looking at, you know, just an excel spreadsheet of how the numbers could work out in theory. But in real life stuff happens. Sometimes properties rent for more than what we're talking about. Sometimes you get more rental growth, sometimes you have vacancies, sometimes you have more maintenance, sometimes you have issues with your rental manager.
There's so many different things that can happen. So these numbers are not to be considered actual facts, but a very rough guideline of what could be possible. Okay, so this is not what everyone's going to achieve, but it'll give you a rough idea and then obviously you can then apply your own discipline and your own analysis when it comes to investing in a property. So what we're gonna do to start with is look in this website which has property tools.com.eu. This is a calculator that I created myself and we're going to put in a total purchase price of 520,000 and our rental income of 700 per week, we're going to interest rate of 5% in there as well and a deposit of 20% in. We scroll down. We've also got property manager fees, vacancies factored in, repairs and maintenance, insurance
and council rights in that as well.
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It's actually possible to create assets from scratch (or with little money) that generate passive income and that can help you move towards financial freedom.
0:00 - Welcome to Quick Money Mondays 0:40 - You probably know about the idea of purchasing assets 1:51 - But there is often the opportunity to create assets in your life 2:33 - Once you can see passive income opportunities you can always see them 3:56 - When you can't see opportunities they don't exist, when you can see them they are everywhere 4:50 - How do we go about creating passive income opportunities? 6:19 - You have to go through a period where you are actively looking for them 8:00 - Another way to look for passive income opportunities
Resources Mentioned in This Video How To Start a Side Business - https://www.youtube.com/watch?v=3Z9POlaRkc0 Rich Dad Poor Dad Book - https://onproperty.com.au/richdad
Recommended Videos How I'm Paying Off My Debt - https://www.youtube.com/watch?v=TPuX7B6BPFY Paying Off Debt vs Investing Money - https://www.youtube.com/watch?v=eicozV3mK0k
Transcription:
It's actually possible to create assets from scratch or with little money that generate passive income and that can help you move towards financial freedom. That's what I want to talk about in this episode. Hey, I'm Ryan from on-property, helping you achieve financial freedom and welcome to quick money Monday's the day where we spend some time talking about ideas around money and concepts around money or personal things around money because we love discussing money, but in society it's not really accepted to do that. So that's what this segment is here about. And today I want to talk about the idea of creating assets. So you probably know about the idea of purchasing assets. So purchasing property, purchasing stocks, purchasing, what other ones are there? I don't know. I'm sure there's lots of other things out there, but I guess the two big ones that people invest in our properties and stock.
So you purchase assets that might generate passive income. So you might invest in positive cashflow property or dividend paying stocks or you may invest in assets that just hold value. So negatively geared property where you're trying to grow the value of the property. Are you hoping the value of the property goes up or maybe stocks were you hoping the value of stocks goes up? So the concept of buying assets is very commonplace in your superannuation. You are likely working earning money which goes into superannuation, which is being used to buy assets. So buying shares in a company is most likely what you're doing. So if you have money in a mutual fund and it's buying a mixture of shares in a mixture of companies, when you invest in stocks, your buying assets, when you invest in property, you're purchasing an asset. But there's also the opportunity to create assets in your life.
And this is something that is rarely talked about that people really think about because it's very difficult to do now in the Book Rich Dad, poor dad by Robert Kiyosaki, which is a, it's a must read if you haven't read it, I do suggest it. Go to on-property dot com.eu forward slash Richdad and that will redirect to where you can purchase the book on Amazon or I'll link it up in the description down below. But in that book he talks about this concept of the rich don't work for money, the rich work to create assets that then generate them income and he in the Book Rich Dad, Poor Dad, Robert Kiyosaki tells this story about how he was working for his rich dad...
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It's a really good idea to have a strategy that can work even in a declining market, especially given the current conditions of the Australian property market as a whole. Is there a strategy where you can achieve financial freedom even investing in a potentially declining market? Book A Free Strategy Session - https://onproperty.com.au/session/
0:00 - Introduction 0:30 - You don't WANT to invest in a declining market, you want to protect yourself from risk 1:40 - We have to admit that yes there is risk of a decline, but there are also chances of the market growing 2:18 - The strategy is…positive cash flow properties 3:18 - The reason positive cash flow properties can work even in a declining market 4:46 - What about rent going backwards? 7:27 - Positive cash flow properties pay themselves off and when you own it outright that cash flow becomes yours 10:03 - It's so important to do your market research 11:09 - You want to purchase a property where you can manufacture growth 11:47 - Given the current market it's important to have a strategy that can work if the market goes backwards 12:50 - Something I love about this strategy 15:12 - I lean towards metro markets at the moment over regional markets 15:48 - What you can do if you want to explore this strategy more
Recommended Resources Mentioned In This Video: Positive Cash Flow Is Underrated - https://www.youtube.com/watch?v=08oBO2C-5_4 Advanced Suburb Research - https://onproperty.com.au/research/ Australian Property Bubble Interview with Steve Keen - https://www.youtube.com/watch?v=brX18YrTPTY
Recommended Videos: 2 Properties To Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y
Transcription:
When investing in property, given current market conditions, it's a really good idea to have a strategy that can work even in a declining market. So even if the market goes back for a period of time, you can still make money and you can still be successful and you can still achieve financial freedom. So in this episode I want to talk about a strategy that works even in a declining market. Hi, I'm Ryan from on-property, helping you achieve financial freedom. And I just want to say from the outset that this is not me recommending that you, that you invest in a declining market. Obviously we want to invest in property that is going to grow. We don't want to go out and seek properties that are going to go backwards in value. I'm sure there's sound strategies out there that can be really successful and make a lot of money from properties going back in value.
But that's not what I'm talking about. I'm talking about, given the current market conditions, a lot of people out there are nervous to invest because I feel like the market may go backwards for a short period of time. Sydney and Melbourne definitely look like they're going to go backwards. Brisbane, we're not so sure about it looks like it may continue to grow, but obviously there's the chance that Sydney and Melbourne can drag down the entire Australian property market as well as changes with appro. Making it harder to lend could have an effect as well as potentially a global recession could affect the market. So is it possible to invest knowing that there's these risks out there, but we can still make money even if this worst case scenario does happen? Because we have to admit that yes, there may be a risk of the market is declining, but also there's the potential for markets growing as well.
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Do you need a property mentor or property coach in order to be successful in property investing? If you don't have a coach what can you do to improve your chances of success? Book Your Free Strategy Session - https://onproperty.com.au/session/
0:00 - Introduction 0:40 - Did Ben have a property mentor in the beginning of his investment journey? 1:14 - You can't just wait around for a mentor to magically appear 3:22 - Is it vital to have a mentor? 4:14 - Having online mentors that you never actually meet 6:09 - Personal development expands your mind, and that ultimately impacts your life 7:07 - There is so much online mentorship out there 8:21 - Tiny concepts that come out of online mentoring can make a major difference 9:44 - You don't need physical people in your life for you to be able to achieve your goals 11:40 - Some people can benefit from one-on-one help from a buyer's agent 13:27 - Why I prefer buyer's agents over seminars or courses 14:31 - Don't let tomorrow look the same as today 18:08 - What to do when all the dots aren't connected 19:42 - You'll never get it perfect first time around
Transcription:
Dean need a property mentor or a property coach in order to be successful in property. Both me and Ben have had contact with people this week that have mentioned that they feel isolated, that they don't have mentors in their life and want to know how they can be successful without a mentor, how they can find one. And so we want us to talk today about whether or not you actually need one. And if you do want one, how to go about finding it. So, Hey, I'm Ryan from on-property, helping you achieve financial freedom. Today I'm joined by Ben Everingham buyer's agent from pumped on property. How's it going, Ben?
Awesome, man. Hey, doing. Yeah. Good. Now
you're kind of in the unique position where I guess you do mentor a lot of people through your buyer's agency, but what about you in the beginning? Did you have a property mentor in your life when you were getting started?
I didn't. I kind of wish I did. Um, just because I wouldn't have made as many of the mistakes that I've made now. Like, yeah, looking back, it would've been super helpful to have someone in my life that was exactly where I wanted to be, that had this strategy that I felt comfortable with and had, you know, that 10 15 years of experience that I didn't have. Just the bounce ideas off and to help keep me focused.
Yeah. I think in an ideal world, having a mentor is Great, but I think the problem that people have is you can't just wait around for a mentor to magically appear. Like, we're not Cinderella here waiting for a fairy godmother to come in and save the day. I personally have never really had a mentor in my life, whether it be in property or be in online business. There's not really one person who has kind of taken to me and helped me along the way. I've really had to find the way myself. And you said something really awesome off camera, which is something that you said to someone, which is they spent multiple years, I think it was five years procrastinating and not investing in property that because they didn't take action that's five years longer than they're going to have to work before they achieve financial freedom. And so I guess to like kind of set up the frame for this conversation is having a mentor is Great, but if you're just waiting around for a mentor and you're waiting around for someone to tell you what to do, it's very unlikely that you're going to get anything ...
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We talk a lot about building and renting out a granny flat, but how much passive income do granny flat's actually spin off and how long would they take to pay themselves off completely? Get Access to Property Tools - https://propertytools.com.au/
0:00 - Introduction 1:28 - The overview of the big numbers 3:05 - Looking at the rental yield and cash flow 5:39 - What if we did a principal and interest loan 7:33 - How long will it take for the granny flat to pay itself off? 10:33 - What if interest rates were 1% less? 12:20 - What if we paid an extra $500/month onto the loan?
Book a Free Strategy Session - https://onproperty.com.au/session/
Recommended Videos Granny Flat With a 12% Rental Yield - https://www.youtube.com/watch?v=z1A1j97r1ho
Transcription:
We talk a lot about building and renting out a granny flat in the two properties to financial freedom strategy, but how much passive income can a granny flat actually produce? So how much positive cashflow does the granny flats spin off? And then also how long is it going to take to completely pay off this granny flat assuming that the granny fights just going to pay itself off. That's what we're going to look at in today's video. Hey, I'm Ryan from on-property, helping you achieve financial freedom. And sometimes it's really fun to crunch the numbers and to see how adding a gray fat affects our cash flow and our passive income are positive cash flow. But also if we were to build a granny flat rented out, how quickly would that granny flat be able to pay itself off so that money can go into our pocket?
So we're going to jump on the computer and look through a bunch of figures today. I think it goes without saying that this is not to be considered financial advice will be looking at just a rough example and I'm guessing I've created a spreadsheet that can kind of predict the future with this, but obviously there's so many changes that you can't predict. Things don't always go according to plan. So this is not to be considered real life example. This is just for us to play with the numbers, get a rough idea of how things might play out if we were to invest in a granny flat. Okay, so generally speaking, um, I've got this spreadsheet here, women talking about the two properties to financial freedom strategy that we're talking about purchasing a house for around $400,000 with rental income around four 20 per week and a granny flat purchase for around or build for around 120,000 renting for two 80 per week.
In this example, we just want to go ahead and look at the granny flat. So I'm going to put the house price at zero and the rental income for the house at zero, that will isolate it. So we're just looking at the granny flat and I'm also going to go across to property tools.com day you now this is a cashflow calculator. I created it myself years ago. You can get access to it as well for a small monthly fee if you want. And what you do with this calculator, I'll go ahead and reset it so you can see from the start, but basically we can put in the purchase price. So in this case it's the build price, which would be 120,000 we can put in the rental income, which is to 80 you can also adjust the interest rate. So interest rates might be 5% they might be 4% they might end up going up over time and be 7% and so as you can see the weekly cashflow before tax here adjust as you adjust these sort of things.
Maybe we could rent it for 300 per week. Then that would increase our cashflow there as well.
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In this episode of Quick Money Mondays I talk about my 7 step plan to get on top of and pay off my debt in the next 12-24 months.
0:00 - Welcome to Quick Money Mondays 0:38 - Step #1: Don't Get Deeper in the Hole 1:38 - Step #2: Reduce My Expenses 4:09 - Step #3: Prioritise My Debt 5:57 - Step #4: Create a Cash Flow Plan 7:36 - Step #5: Work Hard To Increase My Income 10:38 - Step #6: Create a Cash Flow Buffer 12:24 - Step #7: Methodically pay off my debt
Recommended Videos Paying Off Debt vs Investing Money - https://www.youtube.com/watch?v=eicozV3mK0k
Transcription:
Hi everybody and welcome back to another quick money Monday where we talk about finance and money because we absolutely love it. I'm Ryan from on-property, helping you achieve financial freedom. And one of the things that you may need to do to achieve financial freedom is pay off debt. And that's something that I'm focused on this year, maybe into next year as well. And so in this episode I want to talk about exactly what I'm doing and the process that I'm taking in order to pay off my debt. So I've kind of written it down step by step the way that I decided to go about it. So the first step is not to get deeper in the hole. So when it comes to paying off debt, my number one goal is to not acquire any more debt in the process. So to be earning enough money and be living within my means that are not using debt that I'm acquiring in order to pay for old debt that I have.
So I want to live within my means. I want to not be expanding my debt and then I want to have excess on top of that in order to pay off debt from the past. So step number one is definitely to not get into any more debt. And so that's a really big part of my process and something that I'm really, really focused on and doing everything within my power to not do that. So that means no credit cards, no personal loans, no business lines, no anything like that. So we're not going to get into any more debt. We're going to just focus on living within our means and pine of the day. Step number two was to reduce my expenses. I've talked about this a few times on the channel. I did an episode with Ben Everingham on some things we did in our lives to reduce our expenses and to improve our budget.
I'll link that up in the description down below, but the me reducing my expenses is absolutely key for step number one, which is to not get into any more debt. So I run a business, I'm relying on the cashflow of the business that can fluctuate from time to time. I can have good months and I can't have bad months. I don't have a stable employee income like some people out there. So for me, reducing my expenses to the absolute minimum, both in my life as well as in the business has been absolutely key. So that means just cutting back on anything frivolous, anything that was kind of excessive that I wasn't really using. So I've lowered my phone bill. I've lowered my Internet bill and currently staying with family in order to save money on rent for the short term, I'd definitely want my own place.
I wanted so badly. It is great living with my dad. My Dad is awesome, but I have three kids that I have half the time. I want them to have their own rooms. I want to have my, my own space and my own place, but short term, while income stabilizers, I'm reducing my expenses as much as possible so that the money that I would've spent on rent can now go towards paying off that debt faster. Also when it comes to day to day budgeting, I've been spending less than I earn and less than my...
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The concept of "property as an insurance policy" may be one of the most important concepts you hear around property investing. This concept can allow you to invest in a low risk way, achieve your goal of financial freedom and live the life you want now Book a free strategy session - https://onproperty.com.au/session/
0:00 - How this is different to traditional property investment advice 1:24 - How this idea of property as an insurance policy came about 4:11 - Traditional property investing advice goes like this 4:50 - The parable of the pharmacist 5:25 - What does property as an insurance policy look like? 7:40 - How this changes your investment goals 8:52 - Why this concept is SO POWERFUL 12:40 - You can still aim to achieve financial freedom as quickly as possible 14:50 - If you can understand this property investing becomes so simple 15:20 - How long is this going to take you? Maybe as little as 1-2 years 16:55 - If you found this interesting then do this
Recommended Videos What it feels like to be financially free - https://www.youtube.com/watch?v=xVzvDkMpZ3k 2 Properties to Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y
Transcription:
The concept that I want to share in today's episode, maybe one of the most important concepts you hear around property investing. And that's this concept of property as an insurance policy. There's a lot of content out there talking about property as a way to get rich quick, achieve wealth achieved financial freedom. Heck, I've even created a lot of it, but a lot of that requires you or expects you to continually work and continually strive until you reach this defining point in your life where you're either wealthy or you're financially free, and then you can stop. That's going to take an extremely long period of time and life is short, but property as an insurance policy, as an powerful, powerful concept that can allow you to invest in a low risk way, achieve your goal of financial freedom, but also live the life that you want.
Now. So there's some pretty big claims that I've made about this episode, but let's get into it and then you can decide at the end whether or not you think this concept is as powerful as I believe it to be. Hi, I'm Ryan from on-property, helping you achieve financial freedom. You can check out everything I do over on property.com. Dot. Aau. Don't forget to subscribe as we weren't new videos coming out every single week day. So this idea of properties insurance policy actually came about a little over a year ago where I was having a conversation on the phone with Ben Everingham who's the buyer's agent from pumped on property. Likely if you follow the channel, you know who Ben is. We do a lot of content together and we're actually friends outside of work as well. So he had called main cause sometimes he likes to get my opinions on things and he was looking to completely revamp his property portfolio.
So Ben's quite a successful investor at this point in time. His property, he wasn't delivering him the cashflow that he wanted or that he would need if he stopped working, he wouldn't actually be financially free from the cashflow. So he was a bit stressed about that, called looking at selling a bunch of assets, rebuying different assets in order to get that cashflow fast up. And so I started having the conversation with him and I asked him a couple of simple questions. The first question I asked him is, do you want to stop working? Do you need this income now? And the answer was no.
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The mid cycle slowdown is a point where asset prices around the world are priced in and we start to get a wobbly market. We can also identify some potential trends and effects it has on the Australian property market Book a Free Strategy Session - https://onproperty.com.au/session/
0:00 - Mid cycle slowdown introduction 1:14 - What is the 18-20 year cycle 4:17 - The difference between a mid cycle slow down and GFC style event 6:05 - Why it is important to know about the mid cycle slow down 7:23 - After the mid cycle slow down does Brisbane historically do better? 12:01 - This is just one indicator of many you should look at before investing 12:51 - How can we take advantage of the mid cycle slowdown to move towards financial freedom? 16:14 - Then overlay your strategy on top of these cycles 19:07 - Using timing the cycles to reduce your risk significantly 21:11 - Ben's personal investment strategy 22:53 - Look for these 3 things when investing in an area 24:01 - Brisbane is cheaper to buy now than it was 10 years ago! WTF?! 25:29 - Reducing your downside risk so you can achieve financial freedom 26:54 - Stop trying to get lucky in order to achieve financial freedom 28:26 - Looking at what you can control in your investing and life 31:37 - Next steps if you want to start investing
Phil Anderson's Book: The Secret Life of Real Estate and Banking - https://onproperty.com.au/thesecretlifeofrealestateandbanking Fred Harrison's Book - https://amzn.to/2SYV5De
Transcription:
For those of you who haven't heard about this concept of the mid cycle slow down, it's effectively these points that we've been in for about the last six months where asset prices around the world are fully priced in and we start to get a bit of a wobbly market. Maybe it's a stock market, maybe it's the crypto market, maybe it's the property market. So today's video, Brian and I are from on property. You're going to explain exactly what that is and Ryan just going to ask me a couple of questions about it.
Yeah, so Ben has always yammered on about the mid cycle, slow down and about Phil Anderson and the 18 year cycle and always recommended me his book. And given that it's only an audiobook format, I still haven't read it even though I should, but I know that we're entering into this time in the market where it is what [inaudible] would call a mid cycle, slow down. I don't know as much about it as Ben does. So I thought it would be a good chance to ask Ben some questions, get some ideas on what exactly is a mid cycle slow down and how does it affect markets? Because I know me and knew Ben have had conversations off camera about how Brisbane tends to do well after the mid cycle slow down, whereas Sydney and Melbourne tend to do well before the mid cycle slows down. So we'll talk about that sort of stuff as well. So do you wanna start by talking about what is the, I don't know, 18 year cycle and how does a mid cycle slowdown and fit into that? What are the other parts of the cycle?
Yeah, so the cool thing about the world and the property market's economies, businesses, governments is they all work in these cycles. Sometimes things are good and going up sometimes seem to bad and they're going down in every single asset in the world runs in a cycle. Now some guys like Warren Buffet and Ray Dalio save it is, you know, seven to 10 years. So I called some other people like Phil Anderson and Fred Harrison's. Say that there's a, you know, more 18 to 20 year cycle,
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I was out for drinks the other night and a listener of the show came up and said hello and we had an awesome chat. In this video I talk about that chat as I feel our discussion may be useful to some people out there.
0:00 - I got approached in a bar by an On Property listener 1:00 - They were a bit stuck trying to buy an investment property 2:00 - Sometimes a mortgage broker will only give you one solution to a problem but there are other possible better solutions 4:35 - They had the potential to build a granny flat on their existing property 9:07 - If you ever see me out feel free to come and say hi 10:25 - Maybe we can do a property meetup in future
Recommended Videos: Property Investing As An Insurance Policy - https://www.youtube.com/watch?v=E-66pdMRtoc Financial Freedom Won't Happen Unless You Take Action - https://www.youtube.com/watch?v=a5lp9Tf_uCU Transcription: Sells out having drinks the other night. And someone came up to me and said, Hey Ryan, I know you from online and I know you from on property. Can I sit down and have a chat? And it was really awesome to have a chat with this person about their financial situation, about what they're trying to do. And I kind of wanted to share this with you guys cause I thought it was a really interesting conversation. Now I won't say who it is because obviously I want it on a privacy and things like that. But I'm sure if you're listening to this, you'll know who you are. If you guys ever see me out in public, feel free to come and say hi. I always love to meet people and have conversations. As I've mentioned in other videos, I love talking about money. So if someone comes up to me and they're like, I know you from on property and we get to talk about property, we get to talk about money, we get to talk about finance, then that's just gonna make my day.
So if you see me, feel free to come and say hi. So basically having beers, we sat down and chatted for about 10 or 15 minutes and just this person laid out their situation with me about how they are looking to purchase an investment property, but they got stuck in order to get lending. So they already owned one property, they own their own home and they're on this journey where they want to do the two properties to financial freedom strategy or they want to do a version of that and then want to start building up their passive income through investing in property. But they were kind of stuck in terms of getting lending. They had just had a child as well. And so obviously as you have kids and it makes it harder, but what was really cool about this situation was how we're able to look at some ideas of potential ways that they could move forward.
Maybe not right this second, but when the partner goes back to work, then they may be able to get lending despite the fact that the mortgage brokers said they couldn't borrow money unless they earn x amount of dollars. And this I think is really important for everyone out there to think about as well, because sometimes you'll go to a mortgage broker and you'll lay out your situation and you'll lay out your goals. They will then interpret that and tell you a yes or no, yes you can borrow or no, you can't borrow. It's often very important at that stage to say, what do I need to do in order to be able to borrow? And they were given an answer that is who you need to earn x amount of money that exceeded what they were able to do. And so they felt stuck, but there was actually other things that they could try as well.
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When it comes to trying to improve our cash flow position and trying to achieve financial freedom is it better to pay off debt or invest money? Which is going to be the better option for you?
0:00 - Introduction 0:28 - I love love love talking about money 0:55 - This is something I'm wrestling with in my life 1:50 - How does paying off debt vs investing affect our cash flow? 3:14 - Thought experiment using $100 to pay off debt vs investing 5:45 - Investments have potential unforeseen upside, but debt doesn't 7:48 - What I'm focusing on this year 8:50 - The bigger the numbers get the more significant the decision is 10:24 - Don't only think about money logically 10:57 - What do you think you're going to do?
Recommended Videos: Saving Money vs Making More Money - https://www.youtube.com/watch?v=NFXMGtscAyo Transcription: When it comes to trying to improve our cashflow position and achieve financial freedom, often we still have some debt in our lives. So we want to invest, we want to grow our wealth, grow our passive income, but we also want to pay off our debt. So it's a better to invest our money or is it better to pay off our debt? That's what we're gonna be talking about in today's quick money Monday episode. Hey, I'm Ryan from on-property, helping you achieve financial freedom. And every Monday we sit down and talk about a new money concept because I love talking about money and there's a lot of people out there who love talking about money, but there's a lot of people who don't and you might not have anyone in your life that you can talk about this stuff with. So just feel like we're having a chat today to talk about these concepts around, is it better to invest or is it better to go ahead and pay off your debt?
And this is something that I'm wrestling with and thinking about in my life as 2019 is going to be a big year of getting Alison debt that I accumulated through some stuff I went through last year. So getting out of debt and getting in a position where I can really begin to build my wealth again and work towards a financial freedom. So we then do some thought experiments today, look at the pros and cons of paying off debt versus investing. Look at how can it, how it can affect our cashflow. And there's some really interesting things in there that you might not have thought about or might not expect and how dramatically different scenarios can basically double your cash flow benefit. So we're going to look at that and then obviously you can decide what's going to be best for your life. This is for general educational purposes only and not a financial advisor.
So you do what's best for you. Speak to professional if you want to about this sort of stuff. So let's get into the thought experiment about the benefits in terms of our cashflow for paying off debt versus actually investing the money. And for me, when it comes to making financial decisions, I'm all about the cash flow effect that financial decision has. I think this comes from listening and reading so much Robert Kiyosaki and understanding that in order to be financially free, you need more passive income coming in than you have expenses going out. So the way to move towards financial freedom is to grow the passive income, but at the same time, reducing those liabilities and reducing those fixed costs in your life so that you have less than you need to pay for. So for me, when it comes to thinking about debt reduction versus investing,
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Cash flow is more valuable than we give it credit for. Lately times have gotten tough and the passive income and cash flow from my businesses has really saved me.
0:00 - Introduction 0:40 - About 3 years ago I achieve pseudo financial freedom 1:14 - My unfortunate circumstance 2:00 - Passive income gave me time and allowed me to avoid a dire financial position 3:02 - Imagine if I was negatively geared instead 4:30 - Life doesn't always go to plan and our investing needs to take that into account 5:38 - Potential "Downside Life Risks" 7:00 - When investing always think about your cashflow position 7:58 - Passive income gave me 6-12 months to solve my financial problems 9:52 - Cash flow is more valuable than we give it credit for 11:16 - Cash flow is totally under rated
Recommended Videos Saving Money vs Growing Your Income - https://www.youtube.com/watch?v=NFXMGtscAyo I Lost Thousands in Crypto Currency - https://www.youtube.com/watch?v=6msFDDC1mEo Transcription: Passive income and positive cashflow can be extremely underrated when it comes to investing in property, investing in businesses and stocks in Crypto, whatever it may be that you're investing in. And recently I've experienced how valuable passive income can be in your life. And so in today's episode, I want to talk a little bit more about the value of passive income. Talk about how life doesn't always go to plan to get you thinking when you're investing in your next property or whatever it is that you're looking to invest in next, potentially looking for that passive income opportunity. Hey, I'm Ryan from on-property, helping you achieve financial freedom. And about two or three years ago, I achieved what I call pseudo financial freedom. So it was financial freedom in that my businesses were earning enough money that I didn't really need to work. I just worked a little bit and you see that over the last couple of years, my video's really tapered off.
I didn't really do that many. Now I'm in a position where I need to work more in order to earn more money and grow my passive income again. So I had a couple of years where I didn't need to work. Then expenses went up, business went back a little bit. So I'm now in the position where I'm working in getting. But last year had the unfortunate circumstance that me and my wife Kelly decided to separate. Now with that comes a lot of expenses that we weren't really anticipating in our lives. I had also invested in cryptocurrency and lost thousands of dollars in that. So basically last year, financially was definitely not the best year for me and basically got into a position where I started acquiring debt in order to stay afloat. But also at the same time, passive income really came through for me. So my businesses, the way that I grow my online businesses is that I create businesses that spin off passive income.
So I do the work for these businesses, but then they generate income into the future. And so one of the things that's been so good about these businesses over the last few months as as things squeeze as things got really tight, is that yes, I did get into a bit of debt, but also I could really cut back on my expenses and I still had the passive income coming in. So basically I was not in a dire financial straight, straight away. I was in a position where, okay, things are looking bad. It's a short term squeeze here. I know I can work my way out of this position. I know that I can increase my income. I know that at any point if I need quick cash,...
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It took me a long time to create a budgeting method that actually worked for me where I didn't feel trapped. In today's quick money money I talk about the idea of a weekly discretionary budget.
0:00 - When other budgeting ideas don't work 0:45 - Yes I do spend money on Lattes 1:11 - How the weekly discretionary budget works 4:46 - It's a very freeing way to do budgeting 5:25 - Growing wealth outside of this budget 6:41 - Taking it to the next level to make it easier 8:58 - I find it less restricting than a regular budget
Recommended Videos: The Barefoot Investor Bank Accounts Explained - https://www.youtube.com/watch?v=YMKss1bLycw Transcription: In today's episode of quick money Monday, I want to talk about the dreaded b word budgeting and this idea of weekly discretionary income that me and my then wife Kelly came up with that helped us budget when all of the other budgeting ideas didn't really work for us. That's what we're going to talk about as I drive to go and get my morning coffee, so if you know anything about me or follow me on Instagram, which you should add, Ryan Mcclain and I, C l I n e, then you know that I absolutely love my coffee. So I live in Granola. There's lots of great coffee. Shops were my favorite is about five to 10 minute drive away, so I'm actually driving that CFI coffee. I like it so much and yes, I do spend money on coffee. I do spend money on lattes and this is what I want to talk to day about, which is this idea of weekly discretionary income.
So there's a lot of different ideas on how to budget out there. There's a lot of ways that work for some people. I tried the envelope method, we tried tracking things through apps on our phone, all of that sort of stuff, and none of that really worked for us and it wasn't until we came across this idea of having a weekly discretionary budget that things started to click. So the idea behind this budget is that you look at the regular expenses in your life, so you look at things like your phone bills, your Internet bills, your electricity, your health insurance, your cars, all of that sort of stuff that you kinda have to pay for on a weekly or monthly basis. Rent would go into that as well. You look at that sort of stuff and you put it on a spreadsheet and you look at how much money that is costing you and then you set aside that money automatically every week, every fortnight, every month, whenever you get paid, whatever works for you.
So whatever is regular in your life, in terms of finances, you go ahead and you automate that. So when you get paid, you put enough money aside that's going to pay for that. You don't have to think about it if you want to save money on those things and you do that as a one off. Yeah. And then after you've done that and worked out, okay, well how much money do we need to spend each year for those regular things like rent and stuff like that. You then look at what's left over and that's what we would call our weekly discretionary budget. So this is for things that might change every single week. So groceries going out for food, going out to the movies, entertainment, even petrol and things like that would be kind of discretionary each week. So some weeks you might spend more on petrol than other weeks because you're driving more.
Some weeks she might spend more on groceries because you're eating at home or other weeks you might spend less on groceries because you want to go out or you want to buy a case of beer or something like that.
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What if you could lock in your financial security in just 2-3 years? It's actually possible with the 2 properties to financial freedom strategy. Free Strategy Session - https://onproperty.com.au/session/
0:00 - Lock in your financial freedom in just 2-3 years 0:50 - The 2 Properties to financial freedom strategy 1:45 - There are variations on this strategy 2:10 - How do we lock in financial freedom in just 2-3 years? 3:25 - Coffee break moment 4:00 - The core concept of this investment strategy 5:40 - You don't have to stop at 2 6:36 - The work is really all done in the beginning 8:48 - The next 15-25 years become about paying off those properties 11:09 - You can continue to invest to speed things up 12:13 - You don't have to work for 45 years to get financial freedom 14:08 - If you need help implementing this strategy
Recommended Videos 2 Properties to Financial Freedom Strategy - https://www.youtube.com/watch?v=Pj8gLiDEz8Y Transcription: How would you like to hear about a property investment strategy where you can secure, you can lock in your financial freedom in just a couple of years work? Now, this sounds like a sleazy sales pitch. It's not okay. I want to talk about the two properties to financial freedom strategy, which almost anyone can implement and you're not going to achieve financial freedom at the end of those two to three years, but you're going to lock in financial freedom for the future so you work hard for a couple of years, secure the properties you need, and those properties will then go and do the hard work for you to achieve financial freedom. So we're going to look at that in today's episode. Go into some of the details and try and get you to understand this concept and consider it for your own investment journey. Hi, I'm Ryan from on-property condo. You helping you achieve financial freedom.
And this idea came about about a bit under a year ago now. It's called the two properties to financial freedom strategy. The idea behind it and the key concept behind it is that you invest in properties that pay for themselves so you're getting more income than you're paying in rent, so positive cash flow properties, they pay for themselves, but they also pay themselves off so you're investing in the property, you're getting rent from the property, they're paying the expenses, but they're also paying off the debt and over time those properties will eventually pay themselves off completely, and when that's done, then that income can go into your pocket, so the two properties to financial freedom strategy as you purchase two properties build to granny flat, so you've got four income's been a positive cashflow situation, and then just focus on pain. Those properties off as quickly as possible.
That's going to give you a baseline level of financial freedom. Once those properties are paid off and the money goes into your pocket, now you can do this differently. You don't have to do two properties to granny flats. You could do it with just single unit properties like not single units, but just single houses that you buy. You hold, you pay off. You don't have to build the granny flats. You could do it by investing in units. You could invest in blocks of units, you can invest in commercial property, but the basic idea is that you purchase property that is positive cashflow that then goes ahead to pay itself off and so how do we get the two to three years or maybe two to five years of work in order to lock in our financial freedom wi...
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To help me with my finances I'm going to be reading 10 personal finances books this year. Here are the books I plan on reading, hopefully, I will get some great stuff out of them.
0:00 - Introduction 1:10 - Rich Dad Poor Dad - https://onproperty.com.au/richdadpoordad 1:54 - Barefoot Investor - https://onproperty.com.au/barefootinvestor 2:45 - Retire Young Retire Rich - https://onproperty.com.au/retireyoungretirerich 3:22 - Total Money Makeover - https://onproperty.com.au/totalmoneymakeover 3:59 - The Intelligent Investor - https://onproperty.com.au/theintelligentinvestor 4:25 - The Millionaire Next Door - https://onproperty.com.au/themillionairenextdoor The Richest Man in Babylon - https://onproperty.com.au/therichestmaninbabylon 4:46 - The Millionaire Fastlane - https://onproperty.com.au/themillionairefastlane 5:43 - Fooled by Randomness - https://onproperty.com.au/fooledbyrandomness 6:16 - Unshakeable - https://onproperty.com.au/unshakeable
Recommended Videos The 12 Best Personal Finance Books That Will Change Your Life - https://www.youtube.com/watch?v=QSAtYQb82tU Transcription: 20 19 for me, it's really year to get on top of my finances to start building out the business again, to pay off debt, to start saving a deposit for a house, so in order to help get my finances in order and to help make 29 to year the best year yet I'm going to be reading it at least 10 finance books this year. As you may know, I read a lot of books last year. I think I read that 76 books or something like that. Adding 10 finance books into the mix probably won't be too hard for me. Most of them I do through my phone through audible when I'm in my car and driving like this, just parked on the beach at the moment. Having my morning coffee. Let's get into it. 10 finance books that I'm going to read this year. In each of these books I will be doing like reviews and summaries on all of the links to all of these books in the description down below from Amazon.com.edu where you can buy them.
So if you want to buy these books and read along with me, then you can their affiliate links in the description down below. So if you do purchase through that, I get a small commission which helps out the channel. So thanks for doing that. Let's get into it. Number one is rich Dad, poor dad by Robert Kiyosaki. Now I reread this book last year. Uh, it's not that long of a book to read, quite an easy one to read, but I remember reading it last year and getting quite a lot out of it and I want to do a summary for the channel to talk about some of the big concepts in there that I really liked. So Rich Dad, poor dad is my first one. I probably, I can't imagine that I'm going to get crazy life changing stuff out of the book that's going to dramatically impact my finances in 2019.
But some of the concepts in there are so good that I just want to reread it and want to share it with you guys. So that's more for the channel then for me personally. The second book is another reread and that's going to be the barefoot investor by Scott Pape, so I read this one, wasn't started last year or something like that, and change the entire way that I did my banking that I managed my bank accounts and it's had a really positive impact on my life. There's a bunch of stuff in that book that I haven't done yet, so I haven't done the retirement strategy. I haven't done the superannuation strategy, so there's a bunch of stuff that I need to implement. So rereading this book,
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In today's episode of Quick Money Mondays we are talking about getting financial beliefs that serve you and help you achieve financial freedom.
0:00 - Our beliefs shape us 1:20 - An example from Robert Kiyosaki 4:18 - Are your beliefs useful?
Recommended Videos: Saving Money vs Making Money - https://www.youtube.com/watch?v=NFXMGtscAyo Transcription: Hi everyone and welcome back to another episode of Quick Money Mondays where we talk about interesting money, concepts and weeds, flora together to try and challenge your mind and open up the possibilities for what you can do financially in your life. Hi, I'm Ryan from on-property dot com dot a u helping you achieve financial freedom. They've got a really interesting and bizarre one today. Actually can't remember where I got this idea from, but it definitely happened in the last week in either came from a podcast, a youtube video or an audio book that I was listening to actually know. It was a youtube video and it was this idea of your belief system and how you can change any belief in your life. That's kind of cool, but the concept that I want to talk about today is this idea that rather than asking yourself, is this belief that I have true?
Ask Yourself, is this belief that I have useful to my life? Because often you know the saying if you think you can, if you think you can't, you're probably right. Often we have belief systems that if we change them, even if they're not actually true, we'll probably make our life better. So I'm going to give an example of this from. Again, we're going to pull from Robert Kiyosaki because one night, and that's this idea of what is an asset. So is this belief true? Would be an asset is anything of value. Basically if you look in the Oxford dictionary, it's going to set. Let's do it. Let's look in the Oxford dictionary. Okay, so an asset according to Oxford is a useful or valuable thing of person and it's usually used to talk about an item of property owned by a person or company regarded as having value and available to meet debts, commitments, all legacy.
So assets are things that seem to have value. But Robert Kiyosaki, he redefines assets and he says that assets are things that produce income or pay you and liabilities are things that costs you money. And so rather than looking at the world as in an asset has value and a liability is a debt. Look at things in terms of their cashflow. Only because that's going to help you move towards financial freedom and faster so the way Robert Kiyosaki defines an asset and this belief of what an asset is isn't technically true. So Robert Kiyosaki, you got into a lot of flack because he said your house is not an asset, whereas technically your house is an asset because it's a thing of value. People in society, value houses so you could sell it if you want it to, so technically it is an asset, but Robert Kiyosaki, you wanted to change the conversation rather than looking at value and things holding net worth, he wanted to change the focus to the cashflow situation to get you to start earning passive income and to achieve financial freedom.
So in that aspect, redefining asset in a way that's actually false. Redefining your belief to a more useful belief is actually going to give you a better life. So by relooking at things than and saying an asset is something that produces income. Then you can see that your house isn't an asset because it still costs you money. Even if you fully paid it off,
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When it comes to achieving your goals through investing in property you first need a strategy that lines up with your goals. Here is a step-by-step guide on how to create your ideal property investment strategy.
0:00 - Introduction 1:16 - Why creating a strategy is so important 2:29 - Step #1: What is your financial goal? 4:35 - Step #2: Which investment vehicle is going to get you to your goal? 6:27 - Which strategy within that investment vehicle suits you best? 8:52 - Where are you now and what's your next steps to get you to your goal? 11:11 - What changes do you need to make to implement your strategy? 12:11 - Reassessing your strategy or goals based on what changes you are willing to make 15:20 - Be free flowing, but have it centred in the numbers 16:38 - Find the investment strategy you are passionate about 18:02 - Summary
Ben's Video - https://www.youtube.com/watch?v=yr4_GGa-HfA
Recommended Videos How To Create A Property Strategy for 2019 - https://www.youtube.com/watch?v=mFTQN7dz2F0 Quick Money Monday: Saving Money vs Making Money - https://www.youtube.com/watch?v=NFXMGtscAyo Transcription: When it comes to successfully investing in property and actually achieving your financial goals by investing in property, you first need to have a strategy that mine's out with your goals and what you're trying to achieve. There's so many different ways to make money in the property market that if you don't have a clear strategy, if you don't have clear goals, then you kind of invest in this and that and it's probably going to take you longer to get to where you actually want to be. So in this episode we're gonna. Talk about how you can start creating an investment property strategy for yourself. Hi, I'm Ryan from on-property dot com dot EU, helping you achieve financial freedom. And this video is actually inspired by Ben's video, Ben Everingham buyer's agent from pumped on property who I do a lot of stuff with. I was watching his youtube channel the other day and he talked about creating a property investment strategy.
So I'm going to link up to that in the description down below, but I wanted to give some of my own thoughts as well on how you can do this. I think the way he goes about it is really good, but I think I've got some different ideas. So maybe what's both of our videos and then pick apart what you prefer and you know, take the best from each of those. So creating a strategy I believe is extremely important because when you're going out to look at investing in property, when you're looking at the property market, there's just so many properties out there and there's a lot of good opportunities out there as well. There's a lot of duds too, but there's a lot of good opportunities and it's really hard to decide what you should be investing in if you don't already have a strategy.
So having a strategy. The reason it's so important is that when you're on real estate.com that I knew and you're looking through the properties, you can instantly look at a property and say, is this, does this property fit into my strategy and is it going to help me achieve my financial goals? So the strategy is there to help you achieve your financial goals. You can instantly plug that property in to say, is this, does this line up with my strategy? If the answer's no, you discard it because you live in abundance. You know that there's so many opportunities out there. You don't need to look at everything, so it's just a way to filter through properties to find the pr...
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Robert Kiyosaki's Cashflow 101 Boardgame is designed to help you achieve financial freedom, but is it worth investing in? In this Cashflow 101 review I look at what the game is like, the replay value and whether or not I recommend you buy it.
0:00 - Introduction 1:09 - How much is Cashflow 101? 1:40 - How does the game work? 2:55 - The game experience 4:56 - Do I think this game is worth purchasing? 7:25 - Summary of what you'll learn from the game
Cashflow 101 Boardgame Buy on Ebay - https://www.ebay.com.au/sch/i.html?_from=R40&_trksid=m570.l1313&_nkw=cashflow+101&_sacat=0 Buy on Amazon (AU) - https://amzn.to/2HPrrMh Buy on Amazon (US) - https://amzn.to/2MNQDlc
Recommended Books Rich Dad Poor Dad - https://onproperty.com.au/richdadpoordad Cash Flow Quadrant - https://onproperty.com.au/cashflowquadrant Transcription: Robert kiyosaki's cashflow one-on-one board game is a board game that is designed to teach you financial skills and teach you some skills that you need to move towards becoming financially free and achieving financial freedom in your life. In this episode, I want to talk about my experience with the cashflow one-on-one board game and whether or not I would recommend it. Hey, I'm Ryan from on-property dot com data. You helping you achieve financial freedom and this video was a request from a viewer that said, what do you think about the cash flow board game isn't worth investing in because it is quite an expensive board game. I myself love playing board games. I love cards against humanity that is absolutely hilarious. Monopoly. I actually refused to play anymore because they've just been too many fights with friends and family members over monopoly and I just get quite competitive and I have my strategy when I play monopoly.
That's not really a fun strategy for everyone else. It's a strategy to try and win at everyone else's expense and so it's just. It's not good is not good for me, but what about cashflow? One-On-One isn't going to teach you the skills. Is it worth investing in because it is quite inexpensive. Board game, how much is a. let's check it out on Ebay. Okay. On Ebay I can see it's selling for around 70 to $90. Now we're going to check Amazon on Amazon it's about $140. So yeah, Ebay is probably the better option. I can link up to the board game down below if you guys are interested in it, but about 70 to $90 for this board game. Now I purchased this board game about nine or so years ago. I was really into Robert Kiyosaki's books. I still love his books today, but decided to go ahead and spend the money, purchase the board game to play with my then wife as well as my friends and signing off the board game is really quite fun to play.
The premise is you pick a card and you get a job, so in that job you might be a janitor and you have a low income or you may be a doctor and have an extremely high income. So you were thinking it'd be better to be the doctor with the high income and in some circumstances that does help, but the goal of the game is to actually fully replace your income through the investments that you make. So one of the benefits of being the janitor with the low income is you don't need to earn as much money in order to become financially free and to move from the rat race onto what is it? The fast track, I think it's called in the gang and so that's the idea. You get a job, you need to invest in order to become financially free. You also get a sheet that has your assets,
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Is it better to spend your time, energy and focus on saving money or making money? Which will ultimately give you the better outcome?
0:00 - Welcome to this new series Quick Money Mondays 0:39 - I love discussing finances 1:28 - Our mind is powerful, but extremely limited. What we focus on will grow 3:07 - What if you could achieve perfection in saving money? 4:18 - Saving money you have a finite amount of improvement, making money you have a nearly infinite amount of improvement 5:02 - Giving your mind the right problems to solve...making as much money as possible Transcription: Hi and welcome to a new segment called quick money Mondays where we're going to be looking over a new concept around money every single Monday to help challenge you, help get you thinking about things differently and just have a bit of fun as well around this concept of money. Hi, I'm Ryan from on-property dot com dot a U. and in today's episode we're going to talk about saving money versus making more money. And where should you spend your time, energy, effort, attention. Should you focus more on saving money, budgeting and that sort of thing, or should you focus on making more money? I want to do these quick money Mondays because I love discussing finances. I love discussing business. I love discussing personal finance. I love discussing investing and not many people do. Most people don't like talking about money to bu topic. I used to get in trouble as a kid asking my mom and asking other people and adults, how much money do you make?
And I'm still, I'm still doing it today. People tell me about their job or their business. And I, I, uh, I go a bit too intense and too many details because I just find the topic extremely fascinating. So I hope you'll join me for this new segment. I hope that you'll like it and if it's a hit then we'll keep it going. So in today's episode we want to talk about the concept of saving money versus investing money and they just set a framework around this with the fact that our human mind is extremely powerful, but it's also extremely limited and whatever we focus on, we can achieve great things in and whatever we neglect, we can achieve great things in. So if you're focusing on your business or your career and ignoring your relationships completely will then those relationships aren't going to flourish. But as soon as you focus on those relationships, they will flourish.
But being able to focus on multiple things at the same time is extremely difficult. And there's a story in Rich Dad, poor dad or one of the Robert Kiyosaki books where his rich dad talks about how he does the same thing as rich as Robert Kiyosaki's poor dad or some poor person. Okay. I'm butchering this story, but just stick with me here. The idea was he was talking about people who cut coupons and people who spend their day and they spend their energy looking for great deals at the supermarket and then buying things in bulk and Richard was saying I do exactly the same thing, but rather than doing it with coupons and saving sense on whatever it is on buying or maybe saving a dollar I do with investments and investment properties, I look for great deals. I spend my time focusing on that and then I invest and purchase those great deals and if I can, I buy them in bulk.
So both people are doing the same thing. Hunting for good deals. One person is saving fifty cents, one person is making thousands of dollars. So as you can say,
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You can invest in property using very simple strategies or very complex strategies. In this episode we look at the pros and cons of simple vs complex property investment strategies. Book a Free Strategy Session - https://onproperty.com.au/session
0:00 - Introduction 0:59 - What is a simple property investing strategy 3:15 - It doesn't have to be one or the other, you can do both 4:59 - Pros and cons of simpler strategies 6:33 - Short term complex strategies can be super successful, but also higher risk 8:33 - Simple strategies tend to take longer to make money 9:50 - Why we are so passionate about financial freedom and simple strategies 11:40 - Property investing as an insurance policy new concept 13:43 - Mixing simple strategies with complex strategies 15:33 - Having a supportive environment so you can invest successful with complex strategies 18:41 - Next steps to getting clear on how to invest in property
Recommended Videos 2 Properties to Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y Transcription: When it comes to investing in property, there's so many different ways you can invest. You can invest using really simple strategies and have success things as simple as buy and hold property, or you can invest using really complex methods, things like strata titling, commercial properties and development subdivision. There's so many different ways that you can invest. We want us to talk a bit about the pros and cons of simple versus complex property investment so you can get an idea of each and decide which strategy is going to be best for you. Hi, I'm Ryan from on Property Dot Com dot a u
helping you achieve financial freedom. Today I'm joined by Ben Everingham from pumped on property. How's it going, Ben?
Awesome, man. Hey Don.
Yeah, very good. So you've done a mix of simple and complex investing in your own portfolio. Um, I know that you've done that with clients as well. Really excited to talk today about that idea of like simple versus complex. What's good, what's bad about each? So people can decide what's best for themselves.
Yeah. So why don't we define what a simple strategy really looks like to you and me these days because simple 10 years ago looks very complex in terms of what I thought I needed to do. And simple today looks seriously simple.
Yeah. Well, I think a perfect example of a simple investment strategy for me is the two properties to financial freedom strategy. Um, if you guys haven't seen that, then go ahead and Google it, you know, it will show up and you can watch videos on that, um, or I'll link in the description down below. But the basic concept behind that strategy is you purchased to high quality properties. You build granny flats on each of those properties. So you've got four incomes coming in and then you work to pay off those properties over time. And when they're paid off, you divert the money that was going to pay off those properties. And now all that rent is going into your pocket after the expenses of the property. And so that's just a pretty simple strategy because all you need to do is buy two properties or you need to do is then build to granny flats on those properties and then basically focus on paying them off.
And so there's not a lot of complexity there. There's not a lot of niche skillsets that you need to have in order to pull off that strategy. Um, most people can do that, assuming they can get loans in order to purchase the properties and if they can save...
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Positive cash flow property has some major advantages over negatively geared property. Here are 10 reasons positive cash flow property is awesome. 2 Properties to Financial Freedom - https://onproperty.com.au/2properties/
0:00 - Introduction 0:45 - #1: You can start making money from day 1 1:54 - #2: They can pay themselves off 2:54 - #3: They can help you when life gets hard 4:20 - #4: You don't need capital growth in order to make money or achieve financial freedom 5:07 - #5: It can help you to finance more properties 5:55 - #6: You can get capital growth AND cash flow 6:59 - #7: Cashflow tends to improve over time 8:13 - #8: They can protect you from future interest rate rises 9:03 - #9: You can even make money in a downturn 9:54 - #10: Positive cash flow properties can give you financial freedom
Resources Related To This Article Advanced Suburb Research - https://onproperty.com.au/suburb/
Recommended Videos The Problems with Positive Cash Flow Properties - https://www.youtube.com/watch?v=xTdIXWi-SPw Transcription: If you're considering whether or not you think positive cashflows, a good strategy for you, then it's important to look at some of the advantages and disadvantages. I remember doing this back in the day when I was looking at which investment strategy too I want to take, what do I want to pursue? What are the advantages of positive cashflow? What are the advantages of negative gearing? What are the disadvantages of each, so it's really important that you consider these and then consider how they fit into your financial goals and your investment strategy. So in this episode we're going to look at 10 advantages of positive cashflow. Hey, I'm Ryan from on property, helping you achieve financial freedom that let's get into it and look at the 10 advantages of positive cashflow. The first advantage is that you can start making money from day one. If you invest into negatively geared property, you'll be losing money from day one and you need that property to go up in value in order to make money.
You also have cost to get into the property expenses like solicitor fees and mortgage fees as well as stamp judy. There's a lot of costs to get into the property and if you want it to sell to liquidate your equity, then you've obviously got real estate agent fees as well, so you need that property to go up a significant amount before you make any money. However, with positive cash flow properties, because they're making their money in rent, so the rent coming in is more than the expenses going out. You have potential to make money from day one. If your property is rented or if it's not rented on day one, then a couple of weeks in you can turn into a positive cashflow property. This is really exciting to see yourself making money from the very outset of your property and obviously you can have potential for capital growth as well.
The second reason is that they can pay themselves off. Me and Ben Everingham, the buyer's agent from pumped on property have taught a lot. We Bang on the drum of the two properties to financial freedom strategy. We've purchased two properties build to granny flats. You have for incomes coming in and then if you pay off that debt over time, eventually own those properties outright and that rental income can create financial freedom for you. One of the awesome things about positive cash flow properties is that they can pay themselves off because you've got extra money coming in in the form of rent,
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Positive cash flow properties can be a great way to make money and achieve financial freedom but they aren't without their faults. Here are 9 problems with positive cash flow properties.
0:00 - Introduction 0:26 - #1: They are harder to find 1:15 - #2: Sometimes less desirable properties or areas 2:26 - #3: Not positive cash flow if not rented 3:19 - #4: You often have to manufacture cash flow 4:09 - #5: Maintenance can make you negatively geared 5:11 - #6: You can potentially lose out on capital gains 5:42 - #7: Profits generated are subject to tax 6:31 - #8: Property prices may be more volatile 7:08 - #9: Properties may be more difficult to sell
Recommended Videos 10 Advantages of Positive Cash Flow Property - https://www.youtube.com/watch?v=v6WqFXKfh3k Transcription: I love positive cash flow properties and they can be a great way to invest with low risk and to achieve financial freedom, but there are some problems with positive cash flow properties that you should be aware of before you decide what you want to go ahead and invest in. Hey, I'm Ryan from on-property, helping you achieve financial freedom and tell you we're going to look at nine problems with positive cashflow property. The first problem is that they are harder to find negative geared properties are available all over Australia in every single metro market. Wherever you look, you can find negatively geared properties, but if you want to invest in positive cash flow properties, they are harder to find. You need to find an area that has a higher rental yield than average or you need to find properties with unique characteristics that generate a positive cash flow.
So this might be Julie income properties, or it may be a property where you need to actually create the cashflow yourself through a building. Something like a granny flat, but yeah, negatively geared properties are available everywhere. You can have your pick of the litter positive cash flow properties a hard as a fine and they do take more research in order to find the right property. The second problem is that sometimes the properties are less desirable or less desirable areas. Generally speaking, you can often find positive cash flow properties in low socioeconomic area, so in the poorer areas of a town or a city where you've got government housing and things like that. Prices don't tend to be as high, but rental yields tend to be better compared to the price of the property, so you've got higher rental yields in those situations which can lead to a more difficult property or a less quality property because your tenants aren't going to be as good and you're not in that owner occupied area.
Also, you are limited in the areas that you can invest sometimes as well, so you might be restricted to regional centers. That's a really easy place to find positive cash flow properties. Or you might be restricted to these areas of this suburb that aren't full of owner occupiers. So this is sometimes the case. Obviously, the more research you do and the more specific you are, you can find positive cash flow properties that are in great areas, but they're just harder to find, which goes back to step number one. Step number three is your property's not going to be positive cash flow. If it's not rented, most properties, you're going to have one source of income. This is the same as having a job. You got one source of income that you're completely reliant on, and if you're not getting that source of income,
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You can't achieve financial freedom in one big step, in one big leap. What it takes is a lot of little steps. So what you need to start doing is looking for little actions you can take to grow your financial freedom.
0:00 - I didn't achieve financial freedom all at once, it comes one tiny activity at a time 0:41 - How do you achieve something big? One tiny bit at a time 1:48 - Don't focus on your goals, focus on your daily actions 2:50 - It can start with something really small 4:02 - Building any skill takes time, it is no different with investing 5:52 - What I don't like about people who talk about investing, they don't talk about growing as a person (mineself included...awkward) 8:17 - You have so much potential if you apply yourself and challenge your brain 10:11 - Focus on who you need to become to achieve the wealth you want, then start progressing towards becoming that person 11:43 - You're focusing on two things - ACTIONS and BECOMING 13:35 - How I'm applying this idea to my life 14:35 - Don't be a mindless zombie investor 16:21 - Become a person where financial freedom is easy and inevitable
$1,000 Project Book Review - https://www.youtube.com/watch?v=HEVkseXw2H8
Recommended Videos How I Achieved Financial Freedom at 28 - https://www.youtube.com/watch?v=FmrwiK3Itnw Transcription: It took me about a solid 10 years of working online before I achieve financial freedom through my online businesses, but I didn't achieve financial freedom all at once and it wasn't one thing that led to my financial freedom. Financial freedom actually comes one tiny activity at a time. If you can hear the echo, I am actually moving house and as you can see there's a fair bit of mess and not a lot of furniture left. It's been a big job trying to clean up this house by myself and it reminds me of a saying that my old manager gave to me, which is how do you eat an elephant? One bite at a time. Now I'm vegetarian, tiny animals. I wouldn't eat an elephant, but I really like that analogy. How do you achieve something big one tiny bit at a time. You just take the next step and move towards that.
Now this echo is going to really annoy some of you and I bet the mess behind me is annoying. A lot of you as well. So I'm just going to move into another room. Alright, so the echo is probably a little bit better now, but the rooms just as an se, so let's go ahead and shut these doors and pretend that everything's okay and everything's clean so you can't achieve financial freedom in one big leap in one big step. It comes through a lot of little actions that you take in order to achieve that goal. And so what you need to do is to start looking at what are the little actions that I need to take to actually achieve that goal. So myself and with the way that I look at it with the way I look at financial freedom with the way I look at growing my wealth and growing my business.
I have my big goals of financial freedom, how much income I want my business to generate. I set those goals. I'm passionate about those goals, those goals ground me and drive me forward. But rather than focusing on those goals, I kind of put those goals in the back of my mind and I focus instead on what are the things that I need to do in order to achieve this goal. So rather than wishing and dreaming and hoping for this particular thing, I'm actually using that to drive me, yes, but my focus then becomes what do I need to do and who do I need to be in order to achieve that big goal that is granting me a...
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Here are 8 financial habits I'm focusing on in 2019 to move myself forward financially. Getting out of debt, achieving financial freedom and moving on to real wealth.
0:00 - 2018 wasn't my best year financially 1:05 - #1: Budgeting and being frugal 2:08 - #2: Pay yourself first 3:04 - #3: Snowball my debt 3:38 - #4: Expanding my minimalism 4:56 - #5: Selling my excess stuff 6:12: - #6: Always be improving by 1% 7:37 - #7: Constantly creating passive income assets 9:12 - #8: Practicing gratitude, compassion and pride 11:40 - My 8 habits to get me debt free and financially free by 2020 12:44 - I'm so excited for 2019 and moving towards financial freedom
Resources Mentioned in This Episode: Atomic Habits Book - https://onproperty.com.au/atomichabits Barefoot Investor Bank Accounts and Budgets Explained - https://www.youtube.com/watch?v=YMKss1bLycw My Minimalistic Wardrobe - https://www.youtube.com/watch?v=xIEF5_ATaio
Recommended Videos 10 Things We Are Cutting Out of Our Budget - https://www.youtube.com/watch?v=eX5DoSRFjN4 Transcription: In 2018 I didn't have the best year financially. My businesses were spinning off enough passive income that I didn't really need to work or worry about money, so I didn't. I didn't really work or I didn't really worry about money and I focused on a personal things in my life. Went through a whole bunch of stuff, discovered a lot about myself, overcame depression, had a great year on the personal side of things, but not so much on the financial side of things and 2019 is going to be a big year for me financially, moving myself forward, paying myself out of debt, getting out of debt, growing my passive income as well so that I'm back to that position of financial freedom and then moving onto wealth and moving onto that longterm financial freedom. So here are eight financial habits I'll be adopting this year to move me closer to my goal of being debt free and being financially free.
Hi, I'm Ryan from on property. I help people achieve financial freedom and you're really excited about 2019. The first thing that I'll be doing is just budgeting and being frugal. With my money, so keeping track of my money, I've got a system set up now that works really well for me when it comes to budgeting. It's very similar to what the barefoot investor recommends, but I did some slight tweaks to it. You can go ahead and check out the video on how I do that by just searching barefoot, investor bank accounts in Google or in Youtube and I'll link to that video in the description down below, but I've got a system set up where budgeting becomes really easy and my focus is just on my weekly living expenses so all my fixed expenses are in place and being frugal in that aspect. They're all being paid for.
My focus is on my weekly expenses and how I can spend as least as possible during the week so I've got more money freed up to pay off debt and to grow my wealth. So that's the first habit that I'll be doing is budgeting. Focusing on that and tracking that and seeing how I'm doing. The second habit is one that I started last year that I'm going to continue into this year, and that's paying yourself first. I really believe in this principle. I believe in this habit, in this action that when you are paid, pay yourself first so when you're paid money first goes towards your wealth goals because if you're not doing it, no one else is going to, and if it's not the number one priority of your finances, chances are it's not going to happen.
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All of my clothes fit on one shelf, and my entire family's clothes and linen all fit in one single cupboard. Here is a tour of my minimalist wardrobe.
0:00 - Everything in one wardrobe 0:33 - Our wardrobe when we lived in the van 1:13 - What enabled me to fit everything I own on one shelf 1:49 - Detailed look at all our clothing 2:56 - How to make a minimalist wardrobe possible 4:30 - The downsides of a minimalist wardrobe 4:50 - Pants/Shorts 5:39 - Linen 6:15 - My empty walk-in-wardrobe lol 6:55 - The key to living with a minimalistic wardrobe 8:06 - Why I have a communal wardrobe 9:37 - I love living as a minimalist
Recommended Videos 10 Things We Are Cutting Out of Our Budgets - https://www.youtube.com/watch?v=eX5DoSRFjN4 Transcription: I have a very minimalistic wardrobe, in fact inside this wardrobe is not only my own clothes, but also all of my kids' clothes as well as my linen and towels and things like that. This is my minimalist wardrobe to. We will get to looking at this, but this wardrobe is actually a massive upgrade from the van that we lived in, so me and my wife and three kids lived in a camper van and everything had to fit in these tiny cupboard within the van.
We are trying to get a little bit more organized now now that we know kind of what we need and what size containers we needed, so we're just finishing putting all of our clothes away. So these are our four or five of the ride and I say I went into three key sale and he. That's basically all of their clothes. That's all brought. And then poetry's Dan here.
So as you can say, having space like this, we also have down the bottom and we had the other side as well is actually a huge upgrade in space when compared to the van. Now I want to start with my clothes and then we'll look at the kids' clothes as well as the linen and stuff like that. The thing that enabled me to fit everything I own on this one shelf. Okay. Well basically everything I owned except Walmart Jumpers and things like that which are in a separate space, but they would go up here but I just haven't put them there at the moment. So basically all my day to day living fits on this one shelf within. Have a shelf for Branson who's seven, one for Alex who's three. And then over this side we have donors, we have linen, we have sessions cause it, and then we have our towels and things like that.
So looking at my closet, the thing that allowed me to go so simple was to keep all my clothing simple. Here we have tee shirts. Okay. We can see white and black tee shirts. There's actually a couple there that I do need to throw out because I just bought some nuance behind the t shirts this year is singlets. Okay. So mostly I have about six whites, England's as well as one marone one there. So t shirts, singlets on these, basically all the same socks. And then this is the pants section here. So we've got boardshorts, we've got shorts, we've got track pants for winter, and then we've got a couple of pairs of chains as well. So that's basically everything that I wear. If we look at the kid stuff is the same sort of thing. Now the kids spend half the time with me half the time with their mom, so don't have as many kids.
Clothes as well as some stuff's in the wash, especially pants, underpants socks, t shirts and the jumpers are at mum's and then pants under pants, tee shirts and then socks at the back. Their shoes are also stored. But to make this minimalist wardrobe possible, I really had to look at the clothes that I was wearing and really just ...
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For the last couple of years we haven't been super diligent on not spending money. Now we are focusing on saving money and here's 10 things we are cutting from our budgets.
0:00 - Our mindset about spending less 2:12 - #1: Groceries 3:27 - #2: Phone plans 5:42 - #3: Smashed Avocado 7:40 - #4: Insurance 9:24- #5: Alcohol 10:40 - #6: Power Bills (by Installing Solar Panels) 12:23 - #7: Daily Coffee's + Energy Drinks 14:02 - #8: Mortgage Interest 16:26 - #9: Rent Savings 17:15 - #10: Tax Savings
BONUSES 19:29 - #11: Living a Minimalist Life 20:017 - #12: Not Eating Meat
Recommended Videos How We Feel About Credit Cards - https://www.youtube.com/watch?v=pnM7YvcG7oE Transcription: For the last couple of years, myself and Ben have kind of not really been super diligent on not spending money. We've been spraying Kashmir, let's face it, we just sold a couch the other day and my son, grandson, he gets the money and he's just like. It was hilarious. But yeah, we haven't been super diligent on lowering the expenses in our life. We've been mainly focused on growing our income, which were both definitely done, but now we're at a point where it's come time to focus again on saving money in our lives, both in our personal lives and in our business. And so today we want to talk about 10 things that we've cut from our budget. I'll do five Ben, we'll do five as well and hopefully you guys can get some help. Some tips out of this as well. Yeah, for sure. Because there's been some money that, you know, I didn't even realize I was spending probably like you guys right now and you know, hopefully this video will let a lot of cleanup those costs.
Yep. So it is, it does feel really liberating to really start to focus on this and work out how can I still live a really good life, but how can I spend less money at the same time? So this isn't about living off baked beans for the next three years, hating your life, driving your health into the ground because you're not eating properly or living in a complete dump. This is about areas of your life that you can cut expenses, but you can still live a really happy life and a really fulfilling life and have some of those little luxuries as well. The thought of taking something away that's not the reason why I've been cutting costs in my life. Like it's just been because I just like saving money and I don't like overspending on things where I can say to hate the money.
So the things that I've cut haven't been for a particular raising it, it's more just because I enjoy doing that as a, as something to do. So it's less about just, I don't know, it's less about just living super frugally, but it's more about, yeah, saving that extra money that you can then use to invest that you can then use to achieve financial freedom faster. Definitely. So this might be to save a deposit. This might be to buy a property or this might be to pay off debt if you've got those foundational properties to pay them off faster. Absolutely. So what's your number one? Okay, so number one is groceries. Now I've got two kids who are dairy and gluten intolerant and so naturally a lot of the groceries that we were buying can get quite expensive when you're looking at those sorts of dietary requirements.
But there were a lot of stuff in the groceries that were just. We didn't need to spend as much on even things like milk because we drink soy and almond milk. Buying that from Audi. Instead of buying that from Woolworth, you're paying a dollar 80 instead of $3 and Addi...
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Merry Christmas to you! I want to use this day to talk about some of the things I am grateful for this year
0:40 - I am grateful to be moving down to Sydney to spend more time with my family 1:45 - I am grateful for the incredible people who have impacted my world this year 2:35 - I am grateful for overcoming my depression and living the majority of the year without depression 3:20 - I am grateful for the rest I have had over the last 2 years, as well as the kick in the bum to take my business to the next level 4:35 - I am grateful for 10 awesome years of marriage 5:30 - My kids' Santa photo
Recommended Videos: Best Financial Advice We Have Ever Received - https://www.youtube.com/watch?v=3ZY9EFGW30o Transcription: Hi everyone and a very merry Christmas to you. I hope you are having an awesome Christmas with family and friends and whatever you end up doing. I hope that ends up being great. I am going to be opening presents with my children in the morning and then flying down to Sydney to see family and I want to say use this day to talk about some of the things that I'm grateful for that have happened this year as well as some of the things I'm looking forward to next year and I want to encourage you to do the same. Take this time to think about some of the things that you're grateful for and to think about some of the things that you're looking forward to. So started off. One of the things that I'm grateful for is that next year I'll. We'll be moving down to Sydney to be closer to my family and we're very sad to leave up here until I leave the sunshine coast to leave Noosa.
It has been absolutely awesome, but I'm very grateful for the two years that we have had up here. It's been amazing. We found out me and my wife were traveling in a camper van and we found out about Montessori schooling and we thought that sounded like a great option for our children and we found a school up here for our kids and so we moved up here for the school and for the kids, but as well for the lifestyle and we've had two years up here. The school's been great, the lifestyle has been great, but it's time to go back to Sydney, be closer to family again and what able to get into a Montessori school down in the Shire where all of our family, our anyway, so really grateful for the time we've had up here. Really grateful that we'll be moving back closer to family, but also that our kids were able to get into a Montessori school close to home, that they continue that sort of education.
So that's been really cool. I'm really grateful for the incredible people that I've met this year and the people that have impacted my world. It's been a really big year for me and so the people that I've met and the people that I spent time with have really defined my year and really changed me as a person and so I'm so grateful for that and I'm really looking forward to want to move to Sydney, meeting new people as well, making new friends and stuff like that. I think that's going to be really exciting because there'd be more people around. One of the problems of living up here at Nusa is that it is quite sparse population, especially if you're looking for fellow Internet marketers or business owners and things like that, so it'll be exciting to move down to Sydney and to hopefully there'll be more people similar to me so that I can meet more people.
I'm also really grateful for overcoming my depression this year and living the majority of the year without depression,
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If you're passionate about investing in property but not quite ready to go then here are 11 things you can do if you're not ready to invest in property yet.
0:00 - Introduction 0:55 - #1: Learn How To Budget 2:28 - #2: Automate Your Finances 3:20 - #3: Pay off Debt 3:50 - #4: Pay Yourself First 4:50 - #5: Earn More Money 5:37 - #6: See a Mortgage Broker 7:08 - #7: Start Reading Books 8:13 - #8: Get The Right Property Investment Strategy 9:22 - Get one-on-one help 10:00 - #9: Find The Best Suburbs To Invest In 11:47 - #10: Find The Best Properties in a Suburb 12:38 - #11: Learn To Assess The Cash Flow of a Property
Resources Mentioned: Advanced Suburb Research Course - https://onproperty.com.au/suburb Property Tools - https://propertytools.com.au
Recommended Books The Barefoot Investor - https://onproperty.com.au/barefoot Linchpin - https://onproperty.com.au/linchpin
Recommended Videos 10 Ways To Make Money From Scratch - https://www.youtube.com/watch?v=FIvRMTXcLbs How To Find The Best Properties in a Suburb - https://www.youtube.com/watch?v=7f0ETsKRD0U Transcription: So you passionate about investing in property, you want to start building out those foundational properties, work towards financial freedom, but you're not quite ready to invest yet. Maybe you haven't quite savior deposit, maybe can't quite get a loan yet. Here's 11 different things that you can do if you're not quite there yet and not quite ready to invest, and these 11 things go into two major categories. The first category is what I call your financial house or getting your financial house in order, and the second category is your property investment skills, which you can work on even if you're not quite ready to buy yet. So let's jump in and first talk about getting your financial house in order, which is going to be key if you're going to save a deposit and if you're going to be in a position to borrow money from the banks in order to purchase a property, the first thing that you need to do to get your financial house in order is to actually learn how to budget.
This is something that took me years to work out. I tried multiple different types of budgeting and none of them really worked for me. That was until I read this book, the barefoot investor. If you haven't checked it out, go ahead and check it out. I'll leave the links in the description down below or you can go to on-property dot com dot EU for sash barefoot. In here he talks about how to automate your finances, how to set a budget, and I found this extremely helpful and has just been great. I also kind of did. I slightly edited what he recommends, so if you want to check that out, just go to youtube and search barefoot. Investor bank accounts and my video will come up for that one. So step number one is learning how to budget. So little quick rundown of how I do it is that basically each week I pay myself, so money automatically goes for rent, it goes for paying off debt, it goes for savings.
And then I have a weekly amount that I can live off my other bills are also accounted for and paid for, but I have a weekly discretionary income that I can use towards food, towards going out towards whatever it may be. So everything is automated in terms of paying off debt savings, paying the bills, and then I have a set amount each week that I can live off and that's just the best way I've found to do it. The second thing you can do, which is kind of in line with the first one and learning how to budget and...
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Here's 7 lessons I learned from losing thousands in cryptocurrency in 2018.
0:00 - Why I started investing in Cryptocurrency 1:11 - Lesson #1: Market Cycles 3:01 - Lesson #2: I Am Not A Trader 3:46 - Lesson #3: My Time Is Better Spent Creating Value 4:50 - Lesson #4: Your Risk Profile Has The Ability To Change 6:23 - Lesson #5: Life Gets In The Way of Investing 7:17 - Lesson #6: I Want To Invest In Passive Income Generating Assets 8:43 - Lesson #7: I Believe Cryptocurrency is an Inevitable Technology 9:29 - How I Used This Experience To Generate Passive Income 11:23 - I'm Going To Use This To Make Me Stronger and Wealthier
Recommended Videos: 10 Ways To Make Money From Scratch - https://www.youtube.com/watch?v=FIvRMTXcLbs Transcription: I lost thousands of dollars in cryptocurrency this year. Here's what I got interested in investing in cryptocurrency around December in 2017, as you guys may know. That was basically the peak of the cryptocurrency bubble, the cryptocurrency boom where prices went up to over 25,000 Australian dollars. Now that's when I started getting interested in it. I didn't invest in that price. I invested over a period of the next probably six months and put money into the market at different price ranges. Some prices were over that $15,000 mark. Some prices were under the $8,000 mark, so a variation of prices there, but yeah, bitcoin now sits at about four and a half thousand Australian dollars. I actually got out of bitcoin about a month ago and cryptocurrency. I still have a little bit in it. I've got a business in it, which I will talk about, but yeah, alice thousands of dollars investing in cryptocurrency and he is seven things I learned along the way.
The first thing I learned about was market cycles and man, did I get a crash course in market cycles? Believe it or not, but I actually haven't really been through a market downturn in terms of when I've been running my business or when I've actually had money to invest in. I got married in 2008, which was obviously the year of the recession and we made my watch and have a lot of money around that time or for the next five years really, so we would never in a position to go ahead and invest in the stock market or anything like that. So I hadn't actually been a part of market cycles. I know being passionate about stock investing, so I've never really looked into that and I'm someone who is happy to go countercultural, unhappy to go against the norm. So what happened for me was I found out about bitcoin through obviously the price going up and everyone was talking about it, but then I got really deep into what is this, got passionate about the technology and started investing in it because I can see the inevitability of this technology, but I didn't understand market cycles and in understand that, oh yeah.
Frequent. Obviously at the peak of a market cycle here, now's not the time to get in, and so I really got a crash course in market cycles and how they work. Obviously bitcoin's down over 80 percent now. Um, I would've loved to have learned about Bitcoin, cares, my money in cash and then because I still believe in it, maybe invested now or maybe a little bit in the future as things sort of bottom out. So I, I know that I am quite happy to go countercultural to market sentiment when I really believe in something, but I just didn't understand market cycles at the time and I know that sounds dumb, but that's something that I learned.
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I managed to read an impressive 76 books in 2018 and I did it through the use of Audible. Listening to books in 2x speed when I drive, exercise or hangout at home makes it so easy to read lots of books. Get Your First Book Free With Audible - https://onproperty.com.au/audible
0:00 - Introduction 0:37 - The way I was able to read 76 books in 1 year 2:40 - Your brain can listen faster than people can speak 5:10 - The downside of audiobooks 6:51 - Get your first book for free with audible https://onproperty.com.au/audible
My Favourite Books This Year The Barefoot Investor - https://onproperty.com.au/barefoot Skyward - https://onproperty.com.au/skyward Good To Great - https://onproperty.com.au/goodtogreat Atomic Habits - https://onproperty.com.au/atomichabits Born to Run - https://onproperty.com.au/borntorun
Recommended Videos Simple Hack To Add Habits Into Your Life - https://www.youtube.com/watch?v=dFolxo-sIAk Barefoot Investor Bank Accounts Explained - https://www.youtube.com/watch?v=YMKss1bLycw Transcription: So I counted and I read 76 books this year. This is definitely not the full amount of books. In fact, some of these books I was given up for free and then actually read. I actually only read one real hard cover book. So how do I read 76 books in one year? Here's how I did it. So how did I read 76 books in one year? I'm actually not much of a reader at all. I could not sit down and just read 76 books in one year. I wouldn't find the time for it. I don't have the patience for it. The way that I was able to read 76 books in one year is through audible. Through audible I was able to read 22 fiction books for personal finance books, 13 business books and 37 books that I've put in the self help fitness or psychology category.
Currently. I'm rewriting this one good to great. And the reason that audible helps me to read so many books per year, and this isn't an ad for audible, let's just be clear. I'm not advertising for them. I'll probably use my affiliate link down below if you do want to sign up for them, but that's not the purpose of this. The purpose of this is to open your eyes to audiobooks and how good they can be. I'm currently reading this book good to great. I've read about four or five times in my life, but it's a phenomenal business book. It's a combination of things that allows me to read through so many books in one year, so we've got audio books, which means I can listen to them on the go. I listened to audio books in lots of different circumstances. I pair them with these airports.
Okay. So these airports just live in my pocket basically all the time and whenever I'm out I'm able to listen to audio books whenever I want, so I might be going for a drive, I can plug it into my car and listen to an audiobook while I drive. I might be doing the shopping. If I'm grocery shopping, sometimes I'll listen to an audio book when I'm going for a run and I do do long distance running. I'll listen to an audio book. Then kind of we're going for a run, listening to a book when you pushing yourself, but hey, I even do that. Even when I'm brushing my teeth, sometimes I will put my headphones in and I listen to a book, so a combination of pairing up with my headphones and just always having my headphones on me, but also with audible they had this thing where you can adjust the speed of the book so you can listen in regular one time speed and that's fine, but what's really interesting and something that I learned a long time ago is that your brain can act...
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With the new year fast approaching it's likely you'll want to add some new habits into your life. With this simple technique adding habits into your life because really easy and almost automatic.
0:20 - The Idea: Habit Stacking 2:30 - Another tip: Habit tracking 4:00 - You're likely habit stacking anyway 5:02 - Key tip: Make your habits less than 2 minutes 6:48 - Don't try to overhaul your entire life. Focus on getting just 1% better 8:24 - What habits are you going to stack into your life?
Recommended Videos: How To Pay Off Credit Card Debt Faster - https://www.youtube.com/watch?v=S7O_yWpV6wE Transcription: Going into a new year, chances are you want to add some new habits into your life, and this is one of the best ways that I've found to add new habits into my life and it comes out of the cold atomic habits, which I'll link in the description down below, and no, it's not brushing your teeth or doing pushups. It's this idea called habit stacking. If you want to add a new habit into your life, take a habit that already exists and add the new habit directly after it. So the idea is that you take something that you already do repetitively every single day or every single week, and then you add your new habit directly after that. For example, right now my bed is made every single morning I get out of bed. Without fail, you may not believe it, but every single morning I get out of bed. That is a habit that I already do, so now I have it stack and on top of that I make my bed directly after I get out of bed, so I'm already getting out of bed.
That's the trigger to then do the next habit, which is to make my bed after that I brushed my teeth, which you saw at the start of this video, and then after I brush my teeth, I do my pushups. Then after I've done those things and only then will I go downstairs and make my coffee. That's another way to improve your habit. Stacking success and ensure that you stick with something is that after you do the habits that you should do the things that are gonna add value into your life. Then you reward yourself with something that you do want. So after I get up, make my bed, brush my teeth, do my pushups, then I get to reward myself with a coffee, but it's not that I need to remember to do these things because I'm stacking these habits on top of things I already do.
I don't really need to remember them and it has an added benefit. For example, brushing my teeth, which I do twice a day, sometimes three times a day, I really like having fresh breath is that that will then be a trigger for me to do some exercise, so in the morning it might be pushups in the night, it might be sit ups. If for some example, I'm having a crazy morning with the kids and I don't actually get time to do my exercise in the morning after I brush my teeth. Well in the night I'm going to be triggered to do that habit again because I'll brush my teeth again. I'll be triggered to do some pushups or some sit ups or some form of exercise. Here's another tip as well, and it's called habit tracking, so this is tracking your habits. Now this may just look like two espresso cups and it is, but these are special cups, actually have queens in them.
Now this is the not done Espresso Cup and this is the done Espresso Cup. I've got five and ten cent coins in here which represent two different activities I do for my business, the five cents a videos created, so I'm doing daily videos and when they completely done, I'm over coin from this Cup into this cup.
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You don't need a Ferrari to be happy. In fact there's a good chance having a base level of financial freedom and being able to do what you want with your time will make you happier than Ferraris and mansions. Find Positive Cash Flow Properties - https://onproperty.com.au/find/
0:00 - When I was 18 I thought I was going to make $1,000,000 in that year 0:40 - My kids are super noisy, but they are having so much fun 1:20 - A lot of us believe we need lots of money in order to be happy 2:40 - If money doesn't make us happy what does make us happy? 3:20 - #1: Relationships 4:00 - #2: Time to do what you want 4:30 - What will make you happier...a car or a holiday? 5:50 - #3: Reflection and Gratitude 7:07 - #4: Exercise 8:02 - #5: Fun and Experiences 9:27 - A challenge to you to choose Freedom over Ferraris 10:24 - What if you waste your entire life pursuing something that doesn't make you happy? 12:00 - I'm working hard for something that will make me happy
Recommended Videos What it feels like to be financially free How I achieved financial freedom at 28 Transcription: When I was 18, I set the goal to make a million dollars in that year and I thought I was going to start these crazy businesses that we're going to make me feel theat rich, but the whole idea that being rich makes you happy isn't necessarily true, and what I found through my life and through achieving a level of financial freedom through my businesses is that freedom is more important to your happiness Ferrari's. So in this episode I want to talk about this concept of freedom over Ferrari's. Start to challenge you about what you actually want in your life and get you thinking about whether you want to pursue that excessive wealth and if you actually need that. If you can hear in the background. My kids are super noisy. They are playing at the river here in Noosa, which is an absolutely epic spot and I absolutely love that.
My work gives me the freedom to do this. That we could come here. I've had my kids from about 3:00 today. We came here called subway on the way for dinner and we're just chilling out watching the sunset and really just enjoying our time here and that's what's got me thinking about this this moment and stuff like this adds more happiness to my life than some brand new car would, so a lot of us believe that money really makes us happy that in order to be happy, we need to be extremely successful. We see people driving the fancy cars going in helicopters living in mansions, and we think that those people are going to be extremely happy and that more money equals more happiness. But if we look at the psychological studies on this, we can see that that's not true, that yes, money adds to your happiness up to a certain point.
If you're completely poor, you can't pay for your bills. If you can't pay for good food, he can't pay for health cover. If you have all of these issues, if you're stressed about that, then obviously that's going to take away from your happiness and so being poor versus being well off. There is a difference in happiness, but what they found through the studies was that money makes you happier up to a point, and that point was around 75,000 US dollars per year. It's probably around $100,000. Australia in this study was done quite a few years ago now, so it might be a little bit more than that now rather than just a hundred thousand. But it was just really interesting to say that yes, there's a correlation between money and happiness, but only up to a point and that point wasn't Fe...
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A lot of people were interested to know why I didn't achieve financial freedom through investing in property, but instead achieved it through my businesses.
0:00 - Introduction 0:26 - When I started out I thought property would be my way of achieving financial freedom 1:15 - My Dad's attitude towards life may have had a big impact 2:58 - Lending issues held me back from buying property multiple times 3:35 - I found a shortcut to achieve financial freedom 4:57 - Now that I'm not financially free anymore what is my plan? 6:26 - Climbing the corporate ladder didn't work for me 7:20 - I saw another path to financial freedom 7:50 - Property is a great way to financial freedom, but it's not the only way
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How I Achieved Financial Freedom at 28 - https://www.youtube.com/watch?v=FmrwiK3Itnw What Financial Freedom Feels Like - https://www.youtube.com/watch?v=xVzvDkMpZ3k Transcription: A lot of you were interested to know why I didn't achieve financial freedom through investing in property and why it actually achieved it through creating my own businesses instead. This is something that came out of the episode that I did on how I achieve financial freedom at 28. I'll leave the links to that in the description down below, but yeah, a lot of people were curious as to why didn't I achieve financial freedom through property and to be honest, when I started out on this journey, I did think that property would be the way to get me towards financial freedom. When I was 16, I was rating property, books and magazines. I was fascinated with property primarily for this idea of passive income and positive cashflow so that I could achieve financial freedom. I had the goal of being financially free by 30, which I did achieve the.
Now I'm 30. I'm again not financially free because expenses have gone up and business income has gone down, so maybe I didn't achieve my goal after all on back on the grind at the moment, but I always thought that property would be the way that I would achieve financial freedom. I was always certain of that, but I think I got a bit of my dad's blood in me, so my dad has worked one day a week basically for the last 30 years. He works as a journalist and he was working full time on track to become an editor of a newspaper. My parents had their first child, which is my sister Sarah, and my mom who's quite an intellectual woman, decided that she didn't want to be a stay at home mom, so my parents talked about it and my dad decided that he would be a stay at home dad.
He decided to move down to one day a week. My mum went back to work full time, but dad's worked one maybe two days a week for most of his life and he's a very happy and relaxed person. He was never. His goals would never to be extremely rich, but he was always extremely loving and caring and things like that, and I think that kind of rubbed off on me in the fact that my life, I've never had ambitions to be extremely rich, had ambitions to be a millionaire. I've had ambitions to be financially free, but I've never really had ambitions to be exuberantly wealthy. To be someone who just drives those fancy cars who owns those mansions, who has the businesses worth a billion dollars, etc. That's never been my goal, has always been my goal to pursue things that I'm passionate about, to achieve financial freedom so I can do what I want with my time, but when I achieved that, I didn't stretch and I didn't try for more.
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Should you invest for cash flow or capital growth? What are some of the pros and cons of each investment strategy and which is going to be better for you. Free Strategy Session - https://onproperty.com.au/session/ Suburb Research Course - https://onproperty.com.au/suburb/
0:00 - Introduction 1:00 - The pros and cons of capital growth 3:06 - The problem with only focusing on capital growth 4:41 - The pros and cons of cash flow 8:06 - How to get cash flow AND capital growth 8:38 - A real life example 10:02 - You can have both! If you do your research 11:32 - If you need help doing suburb research check this out
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A perfect granny flat opportunity (On The Road Ep2) - https://www.youtube.com/watch?v=shMlAikYO2Q 4 Income From The 1 Property (On The Road Ep1) - https://www.youtube.com/watch?v=RQbn5M_v3to Transcription: Should you invest for cashflow or capital growth? The answer's both, but rather than just say that and the video, they're going to look into some of the pros and cons of capital growth and then some of the pros and cons of cashflow so you can decide what's more important to you as you're looking at Nsse potential investment properties. Hi, I'm Ryan from on-property dot Com dot U. I help people achieve financial freedom and this is something that's been coming up a lot lately in videos that I've been doing with Ben Everingham from pumped on property and that's just this idea of should you invest for capital growth or should you invest for cashflow? And as I said at the start of the video, the answer is you should be investing for both, but I want to get you to have a look at your investment goals at your life situation and to try and work out which of the two is going to be most important to you so you can focus on that in your search while at the same time trying to get both of them.
So let's start with capital growth. And the pros and cons of capital growth, capital growth has traditionally been the investment strategy for most investors in Australia to achieve wealth through investing in property. The idea is very simple. You purchase a property for a certain price, that property goes up in value, you make money when you either sell that property or you borrow against that growth to go ahead and invest elsewhere or to simply take it out and spend it. One of the things that makes capital growth so effective is firstly the market has traditionally grown quite well, but also the fact that you're leveraging your money to maximize your capital growth. So let's say you take a 10 percent deposit, so you take $50,000 and invest into a $500,000 property. Let's say that property goes up by 10 percent. Well that property is now worth $550,000 or you've effectively made $50,000 or a hundred percent return on your original cash investment.
If you were to put that $50,000 in the stock market and that 50,000 went out, five percent went up 10 percent, then you'd have 55,000 and you would have made $5,000. So by leveraging and by borrowing money you can actually increase your return and because you can also rent out your property. Then ideally you'd been a situation where the renters are paying the majority of the interest on your property anyway so you're not extremely out of pocket. So capital growth can be a great way to grow your wealth. Obviously investing in something like a 500,000 or a million dollar property and getting growth like that. People who've invested in Sydney and I'm seeing growth of hundreds of thousands of dollars...
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If you've found a good suburb to invest in the next thing you want to be looking for is the right property within that suburb to maximise your returns as well as get cash flow. Book a Free Strategy Session - https://onproperty.com.au/session/
0:00 - Introduction 0:55 - Finding the right property with growth AND cash flow 2:05 - Cash flow helps you hold the property and achieve long term success 3:23 - Areas you should avoid in a suburb 5:48 - What if you can't afford the best properties in a suburb? 6:24 - How to get into a cash flow neutral or positive position 8:59 - Manufacturing cash flow doesn't have to be difficult 9:55 - Summary of this series 10:30 - Special offer to get you clear on what your next steps need to be Transcription: Have you found a good suburb and a good area to invest in? The next thing you want to be looking for is the right property within that suburb to get the maximum returns possible, as well as the right property to deliver you cashflow. So in this episode we're going to look at how you can find that property or how you can generate that cashflow yourself. Hi, I'm Ryan from on-property, helping you achieve financial freedom. And today I'm joined with Ben Everingham from the buyer's agency pumped on property and so really excited to have you here today. Ben. Thanks for four K. let's run. We are working through this series and I hope you guys are loving this content. This should be putting you in a really good position as a first time investor to reduce your risk, to maximize your returns and to help you achieve financial freedom.
So we've already gone through the steps where we've set our strategy in place. We've located the best suburbs that we want to invest in. Now it's about finding that right property for us, the crude property in the suburb that's going to grow more than the other properties as well as the property that can give us that cashflow because often in those good areas, the cash flow doesn't come for free. Does it vent now like unfortunately, the closer you get to the beach, the closer you get to the city, the cashflow can be a bit harder to find sometimes. Yeah, so in something like a country town, often there'll be positive cash flow properties everywhere, especially with low interest rates, so you could just basically buy anything and be positive cashflow, assuming you can rent it. As you get into those more premium pockets of cities.
The rental use tend to be less so it's harder to generate a positive cash flow, so as we said, we want both capital growth and cash flow. That's why we chose the good suburbs because we want that capital growth. Now we've got to work hard to get our cashflow. It's not going to come for free and most investors stop here. They'll just buy any old property within that suburb to get the capital growth that we negatively geared to the hill and then something will go wrong in their life and they'll then have to sell that property and they'll never get the capital growth anyway. So we don't want you to be in that position. So we want you to find a good property that's going to grow with the suburb, but it can also generate that cashflow and put you in a good position. I heard something from the Australian Bureau of stats the other day that shocked me, which was you looking at statistics.
What was I doing? Fifty percent of Australian investors sell their property within the first five years. That's crazy. Now, if it takes, you know, 10, 15, 20 years to create financial freedom,
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When investing in property you want to invest in the best area possible to reduce your risk in a bad market as well as get epic returns in a good market. Book a Free Strategy Session - https://onproperty.com.au/session/
0:00 - Introduction 1:10 - Rules to follow to exclude bad areas and maximise your returns 2:10 - Metro markets outperform regional markets 2:45 - Houses completely outperform units 3:20 - Properties closer to the city centre perform better than properties further away from the city 5:48 - Why we aren't looking for "Hot Spots" but rather looking for solid long term growth 7:20 - Timing the market for maximum results 9:11 - Next steps once you've chosen your market 10:42 - Comparing suburbs to each other to find the best investment opportunity 13:08 - This is one of the biggest decisions you will make, so don't rush it 14:29 - Maximising your chance for cash flow 14:58 - Special free offer if you want extra help
Resources Mentioned in this Video
Location Score - http://locationscore.com.au Transcription: When it comes to investing in property, you want to buy in the best area possible to both reduce your risk in a bad market as well as increase your chance of getting epic returns in a good market. So in this episode of this series, we want to talk about how to find those good quality markets and those good quality suburbs. Hey, I'm Ryan from on-property, helping you achieve financial freedom. Today I'm joined by buyers agent Ben Everingham from pumped on property. Welcome Ben. Thanks man. Happy to be here. And this series is all about first time investors and how you can reduce your risk, maximize your turn and achieve financial freedom. And we told you in the last video, if you haven't watched it already, I'll leave a link to that down below, but we talked about purchasing those foundational properties that are gonna go on to achieve financial freedom for you and with those foundational properties. We want them to be in good suburbs. So there's always gonna be that demand. If we need to sell that property in the future or because will be renting that property, we want that high rental demand there. We want the rent to go up over time as well. So that's why we're going to be looking at buying into high quality areas and how you can find those areas.
Yeah, so there's a number of rules that ways investors can follow based on looking at the history or the data. Now just alert. I'm going to be like going hard into data on this. Sorry Ron. But you know, these rules have really simple and they make logical sense.
I think. Let's just set me up when we're looking for high quality areas, what we're going to do is create a framework and we're going to set a bunch of rules in place that are basically going to exclude a lot of areas. So it's less about finding the one hotspot that you read in a magazine article or something like that. And it's about excluding all the areas that don't fit into your criteria. So this is what we've found as the easiest and the best way to do it. And we think you'll have success as well. So ben is the data node here, so he's going to lay out some of these rules for you guys that you can follow if you want to reduce your risk and increase your chance. Chance,
pretend. Yeah, as always, like epic way to say what I was trying to say. So these Rosa simple. It's buying in metro markets which effectively means the big cities in Australia. If you look at the longterm data over the last 20 years,
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When inspecting a property you should do these two things. Take a checklist with you (your memory isn't as good as you think it is) and do your research before inspecting. Transcription: Hey guys, Ryan here from on-property and just finishing up here inspecting this property. This is our fifth property for the day and just wants to do a quick video while I'm at the car waiting for the other guys, so just talk about how important it is when you're doing open for inspections, to have a checklist that you go through and also to know the area that you're in. So in regards to the checklist, having things as I've been hanging out with these guys, you can see them in the background there. Simon's been going through each property. Simon adds a. they've got an APP on their phone where they're going through a checklist and every single room in the house, they've got a bunch of items that they're looking at that they're writing comments in their writing from one to five main. Ben Did a full series on how to inspect a property and talks about all those things.
So if you want to create your own checklist, she can go through those videos and we talked about pretty much everything that's an on property.com forward slash inspect. If you want to check that out, but this is our fifth property for the day that we're looking at and they all start to blur into one as you're looking at many different properties and so it's really important to have that checklist so that at the end of the day, after you've done your open for inspections, you can go back and you can remind yourself, what was this property like? What was good about this property? What was bad about this property? There's some things that stand out like certain properties that we sorted out. I can remember certain aspects of them, certain layout, I can remember what the bath was like in one property because that is really tiny bar. So there's these strange things that you do remember, but then there's a lot of stuff that I don't remember.
Like what were the light fittings like on the second house that we looked at, did they have fans in those rooms? I can't remember that sort of stuff. So just having that checklist to go through is really important. And then the next thing is to also know the area that you're in. Have a look at comparable sales in the area before we go and do your open for inspection, so when you're looking at the property and when you're talking to the real estate agent, all the real estate has been super friendly. It's been really good day, but when you're talking to the real estate agent and talking about what price they're asking for, you know, in your hair generally what that property is actually worth before you go into it. Otherwise you have no idea whether it's going to be a good property or not because to be honest, the areas that we've been going through, I don't have my finger on the pulse in these areas.
These guys do. That's why I'm on the road with them today and they're doing the bulk of the work. I'll just pain following behind, but I don't have my finger on the pulse in this area, so I don't know what the property is worth or what it should be. Worth. Some properties that were looked at and they're like, Yep, that's bang on. It's worth that much money and other properties. We looked at the same. You know that's probably 20, maybe 30 grand, overpriced, and so that's because they know the area they know comparable sales in the area that looked at all the other properties that are lis...
https://www.youtube.com/watch?v=FmrwiK3Itnw
I achieved financial freedom at the age of 28 through passive income from my online businesses. Here is a bit of my story and how I achieved that. Transcription: Some of you may know that at the age of 28, I achieve financial freedom through my online businesses, but not many of you would know exactly how I did that because I haven't really talked about it. So in this episode I want to talk about how I achieved financial freedom at the age of 28 through passive online businesses. So I'm just going to kind of talk about my journey, how I got started in this sort of stuff. What I think is required to create an online passive income business and how you can go and start to learn about that in more detail. I can't cram into one video exactly how to do what I did because it happened over about a 10 year period and that's not going to fit into what a 20 minute video or however long this ends up being, but I can share my story and hopefully this inspires you to go out and look for ways that you can generate passive income either online or offline. I started getting into learning how to make money online when I was 18, so 10 years before I achieve financial freedom through making money online. That's when I started learning about it, so it wasn't something that happened overnight. There wasn't some get rich quick scheme or anything like that. I was 18. It was my first year out of high school and I was reading a blog or had downloaded an ebook where someone had talked about going from scratch, so absolutely nothing and how they made $100 in 30 days and so they showed how they created a free blog and they started selling tee shirts and they created this income doing that and then reinvested the money to grow the business even further. And so as an 18 year old, this was extremely inspiring to see that you can go from literally nothing. So they took none of their own money to invest into this and then they started making money. So to think that at the time I didn't have much money. How can I go from earning nothing to making money online? And so I did basically exactly what the book did, I tried to copy it, set up a free blog, tried to create some t shirts that I could sell and sold absolutely nothing, got hardly any visitors to my blog, if any at all. And then I started looking at, okay, well how can I get more visitors to my blog? I started stealing content from other people's websites and putting it out on my blog because I wasn't a very good writer at the time and I didn't know what to write about. I started about 10 to 20 blogs at that time, all of which failed. But I learned a lot along the way and they didn't cost me any money to set up. So once I started doing that, then I learned that you kind of need to have your own website and your own domain. So I started investing some money into that. It wasn't a lot to get started for a domain, maybe $10 for a domain. Talking about five to $10 per month for hosting. Started getting into started blogging. I started blogging about all different sorts of things. Didn't really have a clear focus on how I was going to make money. I did that for a couple of years and didn't make very much at all, but I did make some money online and I knew that it was possible to do it. I found some strategies that worked better than others, so I would double down on those strategies and I would say growth, but it never really saw the income that I wanted to see come out of it. I also did a bunch of freelance writing at that time, so I was paid to write articles. I remember having to write 100 articles on Bluetooth headphones or like Bluetooth. What do they call, you know there's earpieces that you're talking to. So you're on the phone and using a Bluetooth earpiece. This was about eight years ago or 10 years ago now, so back in 2008, 2009. This sort of time. But I remember having to write a 100 articles on Bluetooth headsets and that was just not a lot of fun a...
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In this new series "On The Road" I take you to look at a unique property that will deliver the investor 4 separate incomes. Transcription: There's some amazing investment opportunities out there. If you're just willing to look hard for them. In this episode, I'm going to show you one unique property that will actually deliver the investor four separate incomes once all the work is done on it. Hi, I'm Ryan from onproperty.com.au Helping you achieve financial freedom and welcome to my on the road series, a brand new series that I'm doing where I hit the road with a buyers agency team from pumped on property. I went on the road with Simon, with Adam, with Kristal, the full team minus band. And we went down to Brisbane and looked at a bunch of properties down there. Some of those properties were properties that have already been bought for clients. A bunch of them were new properties that they were looking for, clients who were trying to buy.
And we basically walked through some of these and talk about the different opportunities that are out there. And this will just give you an epic insight into the fact that yes, there's still investment opportunities out there despite what's happening in Sydney and Melbourne. There's a lot of opportunity in Brisbane and it was a really fun day. We started the day with our double shot coffees, which is how we should start every day. I'm already had my double shot today and I'm now on the v while I do some editing, but we had a great day driving down. Let's jump into this first property that we looked at where we, we're doing a presettlement inspection and Simon's gonna talk us through the opportunity and it's just gonna explode your mind. Hey guys, Ryan here from on property. I'm on the road say with Simon as well as Kristal and Ads. We are just currently at one of the properties doing a pre purchase inspection, pre settlement inspection.
Yeah, just making sure that everything is, is aok before settling on the property. There was a few things that came up in the building and pest inspection that we wanted to get sorted. So just making sure that those things are tested, but glad that we could get through this one today on camera because it's actually a really great opportunity for our clients. So he actually only purchased it for $650,000 in a beautiful part of Brisbane, only about 12 kilometers from the CBD. He actually picked it up for 650 grand and this one's on a massive 810 square metre block and it's actually already on two titles so we can subdivide it and put two different buildings on this block. So really good opportunity. Let's go for a bit of a walk through that. Yeah,
definitely. So how do you find that out? That it was on two separate titles? Um, it was just advertised like that,
the advertisement. So the real estate agent had to tell us that one. All right, you lead the way. Where are we going? Let's get it through the house. Alright, cool. So as most houses in Queensland or Brisbane in particular, this is a raised house and semi built in underneath, so unfortunately isn't legal height, so you can't legally count the bedrooms and bathrooms and the kitchens down yet. But that's kind of normal up here. So when they all deal with like 30 40 years ago, they didn't actually raise them to a legal height where you could count this living space, kitchens and stuff down here, which is a bit of a bummer because they're only about less than 10 centimeters off being legal height and you still can't claim it, but sometimes you can raise them and build them in underneat...
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Credit cards are easy to max out and hard to pay off. This simple strategy will help you pay off your credit card faster than you ever thought possible. Transcription: Credit cards can be really easy to Max out and really difficult to pay off. Having credit card debt in your life is extremely toxic, both from a financial perspective because you're paying so much interest as well as an emotional perspective because there's so many different balls you need to juggle. If you have multiple credit cards and it's just sucking energy and sucking finances out of your life. At one point in our life, I'm sure you've all had credit card debt and chances. I've had credit card debt for quite some time, so in this episode I want to talk about how to pay off credit card debt. I've used this method to successfully pay off credit card debt and myself, unfortunately due to personal circumstances, I'm now back in credit card debt, but I'm starting to pay it off again. Hi, I'm Ryan from on-property helping you achieve financial freedom and yeah, we want to get rid of those credit cards.
We want to pay them off and we want to start building our wealth. So how do we pay off our credit cards faster? Will step number one is to stop using the card. A lot of people say in this circumstance to cut up the card and sure, if you have no self control than I do recommend you can go ahead and cut up the card for me. That wasn't necessary. What was necessary was to stop using the card. That means disconnected from paypal. That means no more direct debits coming out of the card and that means the card no longer lives in my wallet. It stays in a cupboard in my house and doesn't get used. It can be there. I feel safe, insecure, like it's a safety net if I ever need it, but I've stopped using it completely. There's nothing coming off that card anymore.
Nothing's being added to it, so now the focus is paying it off. This is probably the most important step that you do because trying to pay off credit cards while you're still using credit cards is extremely confusing and it's just so easy to just tap that credit card and to buy something that you need even though you might not be able to afford it, so stopping using it. If you only do one tip, that's number one, stop using it and then slowly pay off the debt, but if you don't stop using it, the rest of the tips probably won't be very useful to you. The next step is to write down your debts from smallest to largest. Now you can pay off your credit cards in any order that you want, but paying them off from the smallest to largest is called the snowball effect, and this can be beneficial to us because it's emotionally good to pay off a debt, to pay off a credit card and to have it completely done, and then move on to the next one.
Logically, it may be better to focus on the debt with the most interest, even if that's the largest card. Maybe you've got one credit card that's charging you 23 percent, one that's charging 13 percent. Logically, it makes sense to pay off that 23 percent card first, but hey, if we were all completely logical vulcans with no emotion, that we probably never would have gotten into credit card debt in the first place. So go ahead and list them from smallest to largest, you can pay them off however you want, but it is emotional benefit to paying off those smaller debts first and working our way up to the largest. The third step is what I think really turned the tide for me to go from having a Max out credit card for years to being actually able to reduce...
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How can you start a side business or side hustle that earns you extra money and helps you achieve financial freedom faster? Transcription: Starting a side business can be a great way to increase your income and also move you towards financial freedom faster. So in this episode we want to talk a little bit about how we started side businesses and side hustle, the side hustle that eventually became both of our full time Gig and lead to financial freedom for both of us and how you can start your side business and your side hustle as well. So can I actually braided your first side business? Actually work because mine didn't. No, definitely not. I think I first discovered side business when I was in high school. So last year of high school and or maybe in selling lollies shape man.
No, I think actually it was the first year after school I learned about how people make money online by having websites. And so my first side business was I created a bunch of blogs but then I didn't know what to write about and so I stole content from other people's websites and put it on my own website and got zero traffic and made zero money. Visionary. Can't copy and pasting Cagle cagle smart. Yeah, exactly. So, but in, you know that at the time, and so yeah, so my first side businesses or the blogs that I started made zero money and I think I dabbled in that for a year or two before I made my first dollar in and we'll actually set up a lemonade store last weekend with my kid is their first lemonade store. We walked up to the raid, the shop at the end of the straight, got some like cheap bottles and got some ice, went back by handmade this signs and then we just set it up next to the beach and we got six people.
We only did it for half an hour because they got bored. It costs us $11 and six people bought drinks. May Have Five, $5 loss on the store, but, you know, like they're four and six years of age. And I think like the lemonade store was the first little thing that I did when I was a kid. And then fast forward at university, um, I got my first little side business was um, I was really into business and sustainability at that time. And so I want some grants of the Queensland government in my third year of university to $10,000 projects where I actually helped businesses reduce their carbon footprint and save on water and stuff like that. And that's pretty cool. And that was my first taste of a side business and I was like, so did you actually make any money from the business or you just got grants from the government and they paid you to help businesses, you know, to $10,000 grant.
So the whole business model was just when to grants and then figure out a way to deliver. Because I had, I'm pretty sure they just gave me the grant because I was young and motivated and everyone else asking for them was like 50 years of age. So I just got what you had to do is go get 20 businesses to sign up with you and then you could use those business names to apply for the grant. So how'd it go? And door knock and find these businesses say, hey, I'll help you save some money on energy and water. Um, and then I submitted that grant and that was my first taste of a way to make money on the side because at the time I was still working at like noodle box in and cleaning rooms at a hotel while I was at university still.
And that was, that was cool, like $20,000 in the first year from doing something that really only took me in terms of total time, maybe a month to complete like those really it was my first taste of big chunks of money.
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You can accelerate your way to financial freedom by having a successful business. How? That's what we talk about in today's episode. Transcription: Working in a job and investing in property is a great way to achieve financial freedom within a relatively quick time frame. We're talking 10, 15, 20 years, still earlier than most people achieve financial freedom, but you can actually accelerate that through having your own businesses. And this is something that both me and Ben did. We achieved financial freedom through using business and so we want us to talk today about how business can help accelerate your financial freedom or give you financial freedom. So we want to talk about the reasons why businesses good for financial freedom. Yeah. I think as you said, in terms of a get out of jail or I get out of a job that you absolutely hate. Scenario. Achieving financial freedom through a business can be a lot faster just because the short term cash can be significantly higher than, as you talked about before, like waiting that 15 year period to wait for your property to do it.
Saying yes and so waiting for the property to go up in value, waiting for the cash flow for the property to go up as you pay off the debt or as the rent goes up does just take time and there's no two ways about it. Obviously you can do renovations and you can add value and things like that, but generally speaking, that is a time factor that you need to wait out and property. Whereas business you can take a lot more action to increase your income and to get to that financial freedom faster. So let's just talk a bit about the ways business can help people achieve financial freedom. So we'll give you guys some food for thought because I bet a lot of you out there haven't thought about starting your own business, haven't thought about starting your own side business, so this will just kind of get the wheels turning in your head.
Get the cold's going as something to start thinking about. So looking at business, Bro, a lot of people think, oh, I might or might not be able to do that and it can be confronting for people to get the confidence to do it and the way that I think you and I did, it was really nice. You know, I started my own little businesses on the side when I was still working for someone else. So there was effectively absolutely no risk for me in starting something and that gave me the confidence with those short term wins, um, that you get from starting your own business and trial and error over time to enable me to now do, you know, full time business for myself for the last five years or with you and to just, you know, excel at it. So I think putting your toe in the water in terms of starting a business can be a great idea and there's probably plenty of things that you do day to day or week to week on unique knowledge and skills that you have that you could easily apply to starting a business.
You know, if you're a project manager, then you could take on small projects outside of your full time job. If you're an it engineer, then you can, you know, pick your time, I suppose on the side or you can like start responding to stuff on air tasker or high pages if you're trading on the weekends and start building like a passive cashflow completely outside of what you're doing in your actual day to day life, which just can be put back into investing or it can be put back into savings and you can use that savings to obviously go full time into business and speed it up or just do what I did.
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Credit cards are everywhere and most people have one. Do we love or hate credit cards and why? We reveal our opinions in this episode. Transcription: Credit Card, some people love them, some people who absolutely hate them. In this episode we want to talk about our beliefs and our stances on credit cards, whether we have them, whether we like them, whether we think people should use them and all that sorta good stuff. So what's your stance on credit cards? Do you have any give out them. You know what my stance is probably like I'm not a credit card guy, I'm the reason I'm not a credit card guys because when I was 19 years of age I saved some money and went to Europe for three months with my mates and the bank before I went gave me this magic card which I didn't understand and I ended up spending $12,000 on it. I've a chance and came back in at that time. This was before like get on the zero percent interest for two years or whatever rollover that they're doing now.
And it was Kinda like 20 percent interest I think, or 22 percent interest. It took me six full months of working after I came back at that time because I was working at a shitty librarian job to pay the bloody thing off. Yeah. And it kind of, I think that that sort of experience scars you for life. That's why I had a similar experience to that as well as always working as a casual, a news agency slash pharmacy and I had these two weeks where I worked like excessive amounts, like 60 hour weeks, two weeks in a row. Okay. So I just took in those payslips and they gave me a five grade even though generally out in the work, like two days a week. And so I ended up putting my honeymoon on that credit card as well as some other things combined with my wife's 10 grand car loan plus her.
So we started out marriage at I was 20, she was 22 and we were 20, 40 grand at 20 grand, so 10 grand of credit card debt, 10 grand of personal loan and yeah, that took us years to pay off and like we got a bit of help from my mom as well in order to get out of that. So it was so easy to get into the debt and it was so difficult to get out of it that it kind of scarred me. And then I think the next time we got a credit card we got a $1,000 credit card. We just had a $1,000 limit which got up to two grand, you know, a few years later. And it's kind of stayed there. I had a $1,000 credit card actually after when I bought my first property, they threw one in because obviously they want to get everyone's spending and it had a $1,000 limit.
They told me that if I increase the limit to 20 grand, I get three points for every dollar that I spent. And at that time I thought points for a cool thing, so I increased the limit to 20 k, I never actually spent much money on it and ended up getting enough points every couple of years to get afraid, Gopro. And then I can the credit card, like it was a silly thing of all. I probably spent like alternate 100 grand over two years and all sorts of expenses and now that's untrue. I don't know what I spent. That sounds like a lot funny. I'll tell you 1:50 grand a year. That time I was spending $100 on my credit card. But was it like. It seemed like I'd spent a lot of money to get a full $100. Toilet Gopro now probably getting wholesale for 200 bucks a pop.
And that's the thing I think credit cards if used correctly. There's some people out there who are amazing with credit cards. I have this friend who now lives overseas, but he was a treasurer and so he just lived in excel like he loves excel spreadsheets,
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Passive income won't happen by accident. You're not going to wake up one day magically financially free. You need to seek out passive income deliberately.
Transcription: If you want to become financially free, one of the biggest things that you need to recognize is that passive income doesn't happen by accident. Unless you are extremely deliberate about creating passive income streams in your life. You're not going to create any. It's very unlikely that you're going to get passive income by accident and that one day you'll wake up financially free. You need to be really diligent and really focused about it. Hi, I'm Ryan from onproperty.com.au helping you achieve financial freedom and here is a segment from a longer video that I did with Ben Everingham where we talk exactly about this concept that how you need to be laser focused in order to create passive income in your life.
I re-read Rich Dad, poor dad, just the other week because I want to do a review on it for the site, but then also because I'm in this situation when I'm like, okay, I want to get back to financial freedom and just the idea of constantly living your life, looking for ways to generate passive income is such a powerful thing and that might be through property or it might be through something else, but I feel like so many people just live their lives looking for earned income, looking for like to increase their employment income and they're not looking for ways to increase that passive income and like some people might buy one property and then they're done some. Like we've had the privilege of working with so many people who aren't like that and who do focus on passive income and buy property two, three, four and stuff like that.
But even just looking in your regular life at different ways to generate passive income and that might be in small ways through like little side businesses. It might be through like investing in dividend paying stocks. It might be through property. Like once you start looking for the passive income opportunities then they're there., They're everywhere! like, well, you have to look for it and you have to be laser focused on it. It's like when you're trying to buy a new car and then you're like, I'm thinking about buying this car, and then all of a sudden you see it everywhere, everywhere. It's the same with passive income. You need to like force your brain to be like, I'm only going to look for passive income opportunities and then you see so many of them. Whereas if you're not thinking about that, it's not just going to happen naturally.
You're not going to get to a point of financial freedom by accident, but no one gets there by accident and you have to be so deliberate about it. It has to be a design and then there has to be a discipline surrounding that for years and years. Yeah. My brother in law is like, he's really looking for passive income opportunities and now he's starting to find them in one that he found this week. Was this car companies, this advertising companies that if you've got a car, we'll pay you $100 a week, 400 bucks a month to wrap your car and whatever brand you know, and, and that's outside of my scope, but I'm thinking about someone in a pressure situation with two cars. It's 200 bucks a week extra cashflow which might just be to pay for the cars, will take the edge off the expenses in someone's life or if you're a single person, you know, actually 5,000 bucks in the hand takes all of the expenses away from owning a car.
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When it comes to inspecting a property one of the most important areas you are going to inspect is the inside of the property. Here are some tips of how to successfully inspect the inside of a property. Book Your Free Strategy Session Resources Related To This Episode Inspecting A Property Series Part 1 - Questions To Ask A Real Estate Agent
Part 2 - How To Assess Street Appeal and The Surrounding Area
Part 3 - How To Inspect The Outside of a Property
Part 4 - How To Inspect The Inside of a Property Transcription: When it comes to inspecting a property, one of the most important areas that you're going to expect inspect is the inside of the property. And so in this episode we want us to talk about how to inspect the inside of a property. And so today I have with me Ben Everingham from pumped on property. This is a part of the series that we did on inspecting your property. We have already looked at questions to ask an agent. We've already looked at inspecting the street as well as the exterior of the property. If you haven't checked those out yet, go to on-property dot condo. You for sash inspect and we will list all the episodes over there so you can check them out. Um, but yeah, in this one we're talking specifically about the inside of the property, which you're going to want to do a thorough inspection of the inside because most often than not, the agent, we'll walk you around and he'll talk about the benefits or she'll talk about the benefits of the property.
They weren't talking about the things that you actually need to know. You always walk through a property. We gave out really dark glasses on, like seeing everything that's bad or really, really various of glasses on and the agents going to make sure that you noticed the rose colored stuff. So this is just again another way of making sure after the property you've got an accurate picture of what it looks like and I, I take 50 odd fridays per property they don't inspect when I'm doing it for me because I just really want the non real estate.com version of what's going on there. And nonprofessional, those that had been like photoshop, the color, everything like that might guide your eyes, the blue that. So yeah. So there's a lot of stuff that we'll be covering in this video, so we do recommend that you go through with a checklist of your own.
Again, the power in this inspection is not just doing one inspection, but it's in doing multiple inspections or different properties and then you can compare each property to each other and this will also help you when you're doing it. Multiple inspections to not forget the property, forget what it's like, which is definitely an issue. Had you present like that is the biggest issue that I used to face and then I had to jump on real estate.com in the order again and just re remember after saying 10, 15 properties in a day. And so the first thing that we want to look at is does the floorplan work? This is such a video on there's so many houses where the floor plans just don't work. Almost every property that was built again outside of the last three years had a floor plan that didn't work in more than 80 percent of what's being built now.
Ad Doesn't want to hear. I've got investment properties where the floor plan shocking, but pulling out a couple of walls could dramatically change it and in fact the house I'll just fought with my wife like weighed just about the standard right now on him wherever ripping out some walls that just don't need to be there and I can't believe...
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When it comes to inspecting a property you're going to want to have a good look at the outside of a property to see whether or not this is a property you want to invest in. Book Your Free Strategy Session Resources Related To This Episode Inspecting A Property Series Part 1 - Questions To Ask A Real Estate Agent
Part 2 - How To Assess Street Appeal and The Surrounding Area
Part 3 - How To Inspect The Outside of a Property
Part 4 - How To Inspect The Inside of a Property
How To Find A Property To Build A Granny Flat On
2 Properties To Financial Freedom Transcription: When it comes to inspecting a property, you're going to want to have a good look at the outside of the property, what condition it is, what's it made of, et Cetera, so that you can get a good idea of whether this is a property that you're going to want to invest in. So to have with me, Ben Everingham from pumped on property and this continues our series on inspecting a property, so if you haven't checked out the previous ones we did on questions to ask an agent as well as how to look at the surrounding street and area. Go to on property.com, forward slash inspect to see all the episodes that we've done there. But in this one we're going to be looking specifically at the outside of the property and some of the things that you should look at. So one of the things that we're saying off camera beforehand is there's a lot of things here that we're going to touch on and being able to write these down and go through each of these. When you're inspecting a lot of properties,
it's very easy to forget which property is which, which one had the good thing, which I had all of this sort of stuff. What was the condition of the roof? You can't remember.
And so having a notepad, a piece of paper or having a checklist like this can really help with that. So we'll go through a bunch of things, grabbing notepads and pen and write them down and then yeah, it's going to allow you to look back and know,
forget 100 percent. Like the reason these started was because when I used to go to make properties for myself, I had 10 properties. Sometimes he'd take properties in a day in an area that I was looking at and by the end of the day I literally could not remember one property versus another. And so I built this checklist for myself just so that I could compare apples with apples really thoroughly when I walked away. And so that I could actually remember what I was looking at it properly yet. And so the first thing that we had to look at is how old is the house? How do you find this out? That's a tough one. Um, you can find it out an rp data, but that's a paid source. It's just sort of like a question to ask the agent really and take that with a grain of salt as well. Like they could tell you 30 years old, it could really be 50 or 60 or vice versa. Yeah. And everything that we're going to be talking about today as well. None of these are deal breakers. It's all just so you understand the property better, you understand its positives as well as this
negatives. And as Ben said, you can compare apples to apples. So the power in doing this is not just doing it for one property, but the power in it is doing it on multiple properties and then comparing them to each other as well. Well
as comparing their locations and their price and all of that sort of stuff as well. When you think about it, like if you have one big day where you inspect 12 properties, that's cool. But what if you're in the market for six months befor...
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You need to look at the street and surrounding areas to know whether or not you need to invest in a property. Here are some tips on how to assess the surrounding area of a property. Book Your Free Strategy Session Resources Related To This Episode Inspecting A Property Series Part 1 - Questions To Ask A Real Estate Agent
Part 2 - How To Assess Street Appeal and The Surrounding Area
Part 3 - How To Inspect The Outside of a Property
Part 4 - How To Inspect The Inside of a Property
How To Find The Best Properties in a Suburb
Investing With an Owner Occupier Mindset Transcription: When it comes to inspecting a property, not only do you need to ask the agent questions, inspect the outside and inside of the property, but you also need to look at the street as well as the surrounding areas to see what it's like. So in this episode I'll go with me, Ben Everingham from pumped on property and we're going to be talking about this aspect of inspecting a property which is looking at the street and surrounding area. So I think it's super important. Some of these stuff can be done on your computer at home before you get out there and some of it is really that touchy feely stuff that you need I think is really important. Before you actually buy. You have and so me and ben actually did a video on how to choose the best property in a suburb, which I will link up in the description down below.
But that really talks about a whole bunch of this sort of stuff that you can do online. Like talking about distance of high schools, primary schools, bus stops, train stations, all of that sort of stuff. You can do that easily from your desktop online and so you would kind of do that first and now we want to talk about what to do when you're actually at the property in person 100 percent. So we've got a bunch of different questions that you ask your team ask when they're looking at a property. So we're just going to kind of work through some of that. The first one being an important one is, is this property on a main road? Now? This is one that you should be able to tell from Google maps, but not necessarily when you're in the area. See the traffic and it becomes a lot easier.
So we, the reason we don't want to buy and main roads is, you know, when there's suburbs with $400,000 on average, maybe you can buy a house on a quiet street for 400 k and the house on the main roads with $390,000. But as the properties values go to a million dollars or $2,000,000 in 30 years time. Um, the difference between the main road and a and a quiet street can literally be half a million bucks. So it's really, really important to remember that for future capital growth and that's why he asked that one and the next one is, are the houses in the street well maintained? So that's also something hard to find out. You could use Google street view, but being there in person and just getting the vibe of the street, looking at your neighbors, looking at the other houses in the street, how well areas maintain, gives you an idea of how many people in that area, uh, owner occupiers, how many are going to be improving their properties, what gentrification is happening, all of that sort of stuff.
What exactly is it that you guys look for? It's like that's a touchy feely one. And again, like it's, I look for what he wants. That's, you know, how many houses in the schrager renovated is another thing that we've looked for. But how, how many people are actually taking care of their cars?
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How do you talk to a real estate agent and what questions do you ask them to get better information to buy better properties at a better price. Book Your Free Strategy Session Resources Related To This Episode Inspecting A Property Series Part 1 - Questions To Ask A Real Estate Agent
Part 2 - How To Assess Street Appeal and The Surrounding Area
Part 3 - How To Inspect The Outside of a Property
Part 4 - How To Inspect The Inside of a Property
How To Inspect A Property Before The Open Home Transcription: When it comes to inspecting a property, there's a lot of different things to think about and a lot of things that you need to look for as well as do as well as ask and so tonight when he was Ben Everingham from pumped on property, we are on a couch. That property is not the property, so it happened a lot about this before today's video started company cash pick up the property can definitely not taking your pants from anywhere else that we know now, but we'd love those guys. Focus is also if you guys haven't checked it out, but okay, when it comes to inspecting a property, there's a lot of different aspects to it and so we wanted to break this into a few different episodes and the first one, this one here, we're going to be talking about questions to ask the agent. So we're gonna be talking about how to talk to that agent. Different things that you can ask the agent to really give you a good idea of where the property is, where the negotiating room is and all of that sort of stuff.
And this is the thing that we actually use, like we're literally walking through this series of videos exactly what we do as a business just so that you've got a tool set that you can ask better questions to get better information to hopefully buy property at cheaper prices using this information.
Yeah. And the stuff that we're going through has been built over a number of years. So ben and his team over here at pumped on property had built it and space within. Every time they went to an inspection and they miss something. It's like, okay, we need to,
but there's something. Listen, make sure we don't miss it next time. How many mistakes can bend personally making these portfolio before he creates a full system to not make those mistakes
again, you're getting this giant spreadsheet now. I'll just try and remember it. Difference in how we work, but okay. When it comes to questions for the agent, we just want to say from the outset that it is really good to book an open for inspection rather than trying to do this at a open to the public open for inspection. So I did do a video with Simon on how to actually make that happen. So if you haven't checked that out, we'll leave the links in the description down below, but you want to talk about why that's so important before we get into what questions are.
It's so important because at an open home, one of two things happen. The agent is freaking out about nobody being there and then every single person that walks through the door, they have to have these meaningful conversation with or there's just heaps of people there and you can't spend meaningful time with them. The second reason and the most important reason to me why it's important is you want to build a personal relationship with these guys and actually get, give them the sense that this is important to you, that you're a serious buyer so that they treat everything that you say, you know as it's going to actually affect us out.
Yeah, and so when you're at an open public open for inspe...
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Bad financial decisions can hold you back, or they can be a catalyst to push you forward towards even more wealth. What will they be in your life? Resources Related To This Episode Rich Dad Poor Dad By Robert Kiyosaki
If You Want To Be Rich Focus On This One Thing Transcription: There comes a time in all of our lives where we make poor financial decisions, but what you do with those financial decisions will determine whether you become richer as a result or whether you become for a as a result. So today's episode, I want to talk about some of my poor financial decisions and how they actually led me to create more wealth in my life and hopefully this will encourage you and the way that you approach your setbacks and use them as an actual catapult to move you forward. So Hey, I'm Ryan from [inaudible] Dot Com dot a U. I help people achieve financial freedom and the idea for this episode came as a result of this skateboard which is behind me. Now. This has recently been painted by my wife who is a fantastic artist bus. As you can see, it is extremely, extremely rusted. This has been outside for quite some time. The bottom is also very destroyed. This skateboard. It means a lot to me.
It is a joy to ride. It has huge sentimental value because it's been in my life for over 10 years now. I bought it when I was with my wife before she was my wife. All of my kids had re written on the skateboard and I just love the way that it feels, so what I did was I got my wife to repaint it as you can see and went to the skateboard shop yesterday to try and get some new bearings for it so I could continue to use it as well as some grip tape thinking, you know, might cost me 40 bucks or something like that. My budget isn't super tight, but it's also not super loosey goosey either. And so went to the skate shop, ended up paying about 80 bucks for bearings and grip tape and then in the end turned out that the old bearings that actually fused onto the truck and we couldn't get them off,
couldn't get a refund for them, was able to get a credit. But basically it was about $80 down with nothing to show for it. Which kind of punched a hole in our budget this week that we weren't expecting. I wasn't expected to be $80 down and still not have a skateboard to show for it and to have to invest a couple of hundred dollars to fix this thing if I want. It's actually gonna be more expensive to fix it than it is going to be to buy a brand new one. So that was a bit of a setback which made me really, really frustrated yesterday. I just hate it when you invest money into things and it just doesn't work out. So spent $80 and basically got nothing for it. My wife had a similar situation where she has to go to a funeral and she purchased a dress for the funeral.
She doesn't own a funeral dress and it ended up being the wrong one, but it was on sale so she couldn't take it back. So there was another $40. Another mistake we had made in our budget that we couldn't really recover from because she couldn't return that dress even though it wasn't actually. Right. So sometimes you have financial setbacks like this. It might be small financial setbacks like the one that we've had this week where we've just kind of overspent on things that really didn't work out or it could have been larger setbacks. I've had businesses in the past that have failed. I've invested thousands of dollars into different projects that never turned out to be anything. I bought domain names for thousand dollars that I had big plans for that neve...
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There is power in having small financial goals that once achieved allow you to take stock and then decide on the next goal. In this episode I'm joined by my wife Kelly and we discuss why big financial goals can actually be a bad idea and how a goal like baseline financial freedom can set you up for success. Resources Related To This Episode 2 Properties To Financial Freedom Transcription: Hi Guys, Ryan here from on property and today I am joined by Kelly. Hey guys. And we wanted to talk about the power of small financial goals in your life. And this discussion kind of started when we're talking about the power of aiming for baseline financial freedom rather than extreme wealth, but then kind of evolved from there. So do you wanna kind of expand on this idea?
Well, I always loved the idea of they're actually achievable as opposed to like these ginormous things that, well I certainly feel overwhelmed by goals that are just so far out there in the future and I love the ID that you can kind of set a goal that keeps you from just not being present in your life. Like you've, you've setting a goal that's like decades in the future. You're like, you're not going to look up for decades. Like you're not going to be present in your life until you achieve that goal after, if you hopefully achieve that goal and even then you're going to be that same person that you are when you said it.
Yup. And so really the revelation for us came, I had the goal that I wanted to be financially by 30 thing. I wanted to be a millionaire as well. It's definitely didn't. But I had that goal and head down, bum up for many years. We strived after that goal. I would work long hours, we still had kids and we'll still living life, but we kind of felt like will sleep walking through a bit of our life. And then we got to the point where it was like, okay, we don't really need to work anymore. We're not rich by any stretch of the imagination, but our bills are paid and our lifestyle is covered. And then we got to that point and took stock and we realized how unhappy you were.
Totally. That was pretty crazy that time, wasn't it? Well then as well as, you know, we were different people when we set those goals and we've probably set them for the wrong reasons, which is would be what a lot of people do because you're just young and you just think you idolize people that are already a decade ahead of you with what they've got and they look like they have it altogether
and you analyze the people on instagram and the people on Youtube who looked like they spend their lives flying in private jets and driving lamborghinis or amazing cars
wrong with doing that. If you know, if you're, if that's what you want and that's nothing probably prep. Yeah. It's just being more realistic, isn't it? So that you're just not missing out on your life striving for a goal that you don't even necessarily want.
Yeah, so I think the big revelation for me was that when we hit that goal a couple of years ago and then I wasn't happy, I thought I would be happy when I achieve financial freedom and I wasn't. And it took us a journey of 18 months, two years to get to where we are now. We feel more comfortable in our lives and in our own skin and in our relationship.
Yep. Um, so much of that as well as like really just slowing your life down, isn't it? So if achieving small goals, you've got time to achieve when you've achieved the goal, you can stop, take stock, look around you and then set a new one and you can do that at intervals throughout your ...
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Today I share what has become the most important and impactful quote in my life. It has pulled me through many dark times and I want to share it with you today in the hopes that it inspires some of you out there. Resources Related To This Episode The Mexican Fisherman Story From The 4 Hour Work Week Transcription: Today I want to share my absolute favorite quote of all time. This is actually pretty personal for me. This quote has seen me through a lot of dark days, has helped me a lot and continues to inspire me today to live the lifestyle that I live, to live quite an alternative life and to not worry what people think about me, but to try and live my truth and so I want to share this quote with you tonight. It's a bit of a long quote, but I think that you'll enjoy it and hopefully it will put a smile on your day or maybe it will become one of your mantras as well like it has in my life. And so this quote is from Marianne Williamson who I believe is South Africa. It's often attributed to Nelson Mandela by accident, but he never actually said it. The quotes quote our deepest fear and it goes like this.
Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It's our light, not our darkness that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous. Actually, who are you not to be? You're a child of God. Your playing small does not serve the world. There's nothing enlightened about shrinking so that other people won't feel insecure around you. We are all meant to shine as children do. We were born to make manifest the glory of God that's within us and it's not just in some of us. It's in everyone. As we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others. Say that. That quote I originally discovered in the movie coach Carter, which you haven't seen that movie.
That is one of my favorite movies of all time. It's originally in that movie, slightly altered in that movie, but that is where I first heard it and I was like, oh my God, that resonates with me so much. I love that quote. I have always felt a little bit different to other people. As you can see, if you've been following me for any amount of time on not your standard real estate guy out there, the way that I approach investing and Finances and financial freedom and wealth is very different to most people and the way I do my life is very different to most people. Me and my wife has always really felt that we were kind of pioneering that were out on our own. I've never had a mentor in my life so to speak because there's never really been anyone that has lived the exact life that I want to live.
So I've never had someone you know, really get behind me and mentor me to be all that it can be. I've always felt different. I always felt on my own, which is kind of weird because in the early days when I was younger, I really, for a mentor, I really pined for someone to look at me and to see me and see the potential in me and invest in me and to give me that mentorship and it just never happened in my life. So I had to do it myself. I mentored myself through reading shit, tons of books, how lots of podcasts, lots of videos, lots of educational content. I mentored myself, uh, and I just decided to live my own life when I started on property in the early days. I really wanted to help people and I still do,
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The Mexican Fisherman story, which I originally read in the 4 Hour Work Week by Tim Ferris, completely changed the way I viewed wealth and financial freedom. Resources Related To This Episode The 4 Hour Work Week By Tim Ferris
2 Properties To Financial Freedom
3 Stages Of Property Investing Transcription: Today I want to share with you a little story that completely changed the way that I view business and the way that I viewed life. It was extremely impactful for me and that's why now I live a pretty conservative life. I focus on lifestyle and enjoyment. I focus on spending time with my family and with my friends and being creative and just loving life rather than striving for extreme well. So this was this story that I'm going to share today was hugely the defining for me and it comes from the four hour work week by Tim Ferris. If you haven't read it yet, I will leave links in the description down below or you can go to on property.com forward slash four hour and that will link through to the book. This story comes from that and I just think it is a great way to look at life and to look at finances as well.
So the story's called the Mexican fisherman and American banker was that the peer of a small coastal Mexican village. When a small boat with just one fisherman docked inside the small boat with several large yellowfin tuna, the American complimented that Mexican on the quality of his fish and asked how long it took to catch that. The Mexican replied only a little while. The American then asked, why didn't he stay out longer and catch more fish? The Mexicans said he had enough to support his family's needs but the American than us, but what do you do with the rest of your time? The Mexican fisherman said, I sleep late. Fish a little play with my children. Take css with my wife, Maria, stroll into the village each evening where our sip wine and play guitar with my Amigos. I have a full and busy life. The American scuffed.
I'm a Harvard Mba and can help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat. You could buy several boats and eventually you'd have a fleet of fishing boats. Instead of selling your catch to a middleman, you'd sell directly to the processor. Eventually opening your own cannery. You control the product processing and distribution. You would need to leave this small coastal fishing village and moved to Mexico City, then La and eventually New York City where you'll run your expanding enterprise. The Mexican fisherman asked, but how long will that take to which the American replied, 15 to 20 years, but then what? Ask the Mexican. The American laughed and said, that's the best part. When the time is right, you will announce an IPO and sell your company stock to the public and become very rich. You would make millions, millions.
Then what the American said. Then you would retire. Move to a small coastal fishing village where you would sleep late. Fish a little play with your friends or play with your kids. Take css with your wife, stroll to the village in the evenings where you could sit wine and play your guitar with your Amigos, and so that fisherman story, the Mexican fisherman story had a huge impact on my life and the way that I saw wealth and just that line there. That is you could make millions and then the Mexican fisherman says millions. Then what in the outcome was the exact life that he had. It's just crazy to think about that. There's so many of us.
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Cash-on-cash return is a way to measure the success of a property investment. But what exactly is cash-on-cash return, why is it useful and how do you calculate it? Resources Related To This Episode Property Tools
The 2 Key Elements For Financial Freedom Transcription: There are many different ways to measure the success of an investment property and there's many different metrics you can use to determine whether or not the property is successful. People look at capital growth, they look at cashflow. There's so many different ways that you can measure growth. One of those is cash on cash return, and in this episode I want to talk about exactly what cash on cash return is and why you may want to use this metric to work out whether or not your property is performing as well as it could, and also show you how to calculate it as well. Hi, I'm Ryan from on-property dot com dot EU. I help people achieve financial freedom and understanding your numbers is really important towards achieving financial freedom. So what we're gonna do is we're going to look at a specific property here and look at what the cash on cash return is, which is gonna.
Help us talk about it. So here we have a property in Mount Austin which is near Wogawoga and it's asking price is 249,900. Renting for about 3:50, two, three 60 per week. So what I'm gonna do is I'm going to go to a property tools.com dot a u, which is a calculator that I created myself to do these calculations. And it also does cash on cash return. So here we are in the calculator. Let's go ahead and put in the asking price of $249,000. Two hundred 49,000, 900 renting for. We'll put 3:50 per week. So this calculator, we'll go through and look at the expenses of the property, look at maintenance, your interest repayments, etc. And so we have a weekly cashflow before tax of about 36, $37. So thAt's one way to look at it. Uh, and to say how much are we going to get per week?
Uh, it's about $2,000 per year. So not a huge amount of money. Another way to look at it is the cash on cash return. So we scroll down, we can see the cash on cash return before tax as well as after tax. So cash and cash return before tax of two point eight percent. So let's have a look at what exactly is cash on cash return. So cash on cash return simply is how much cash you're getting back for the amount of cash that you put in. Now if you're making an investment in say a term deposit at a bank, this is a really simple calculation to do your cash on cash return is whatever they give you back. So if you put in a thousand dollars into a term deposit at three percent, then you're getting a three percent cash on cash return. You're getting three percent back of the cash that you put in.
with property it's a little bit different because you're putting in a deposit and then you're borrowing money from the bank in order to purchase that property. So what the cash on cash returns looking at is how much cash are you getting back each year in terms of positive cashflow and how does that compare to the amount of cash you put into the deal in terms of your deposit as well as stamp judy and other closing costs as well. So why is this useful? I think this is useful because it allows you to compare your investment to other investments that are out there in terms of putting your money in a term deposit, in terms of putting your money in the stock market, et cetera. So before you even take into account capital growth and how much money you can make,
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If done correctly properties can actually do the work required to create financial freedom for you, with little financial input from yourself. This is a powerful concept and makes achieving financial freedom seem a hell of a lot easier.
Resources Related To This Episode
2 Properties To Financial Freedom Transcription: Tonight, I want to share with you a really important concept which may change the way that you look at property investing and achieving financial freedom. Now, that is a huge statement to make at the very start of an episode, but I really do believe that this concept is so powerful that it just makes financial freedom seems so much easier than what you may think it is high on Ryan from on-property dot com dot EU. I help people achieve financial freedom and today we're talking about the concept that properties, if invested correctly, will actually go on and do the work to create financial freedom for you. So you purchased the properties, you acquire them, you rent them out, and then they pay themselves off and eventually there'll be completely paid off. You can then take the rental income and live off it and you'll be financially free.
So rather than paying down the debt yourself, those properties are working hard to pay themselves off. And eventually we'll go on to deliver you financial freedom. So in this episode we're going to get into the nitty gritty. We're going to look at some numbers with this. So you can see it in action and then hopefully this is just going to flick a switch in your mind that you realize, oh, just acquiring these properties as the hard work and then the properties do most of the work towards achieving financial freedom for you. So we'll jump into the data here and we're going to be looking at the details around the two properties to financial freedom strategy. So if you haven't checked that out yet, you should check that out. That's an on-property dot condo. You forward slash fibo eight we go into in complete detail. But if you haven't seen it, the basic strategy is you purchase a house for around 400,000 and you build a granny flat which cost around 110,000.
So total cost is $510,000. You then rent the house for about 4:20 per week. You rent the granny flat for about two 80 per week. So you've got about $700 per week coming in. That's the basic strategy. You just do that twice by a house, build a granny flat, buy a house, build a granny flat, so you don't actually need to watch that video, but I do suggest you watch it at on-property dot com dot EU four slash five slash eight, or in the links down below if you haven't already, because we just talked through it in more detail. So I'm going to assume a 20 percent deposit in this, which means we're going to be very close to cashflow neutral if not cashflow positive in the first year when we start. If you use a lower deposit, you may start negatively geared and you need to work yourself out of that.
Um, but yeah, it using a 20 percent deposit which should be cashflow neutral from day one. So let's look at some of the data here in the rental income. This is not the most accurate way to predict the cashflow of the property, but it's all right and it's going to be good for what we're looking at today to just explore this concept in a bit more detail. And that's the idea that 20 percent of our rental income is going to go on expenses. So that's things like manager fees, counsel rates, insurances, all of that sort of stuff. So we'll take the rental income,
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Building a granny flat isn't a difficult process. In this episode we share the exact granny flat building process including what you need to do, how long it takes and some important things to think about. Book Your Free Strategy Session With Pumped On Property Resources Related To This Episode How To Find A Property To Build A Granny Flat On
How To Not Over Pay For A new Build Property
Handovers.com
2 Properties To Financial Freedom Transcription: When it comes to building a granny flat, it can be a little overwhelming to think about what's it going to be like to build this granny flat, how hard is it going to be? But it's actually a really simple process and so today I have with me Ben Everingham. Why is I jumped from pumped on property event Iran and we're going to be talking about the granny flat building process. So what is it like to go through this process? So if you're thinking about investing using the two properties to financial freedom strategy that we've talked about, you're thinking of using that strategy, purchasing a property and building a granny flat, what is it going to be like once you purchased that property and now you want to build the granny flat, how does that work? So for those of you out there a bit worried about that or just want to get I guess a teaser and you know, really understand the process. That's what we're here for today. So pen, how many granny flats have you built personally yourself or help it will not built yourself but hire to have built.
I've done it without my own hands because I'm hopeless. You definitely. I'm not a trade. You can tell them I competed, man. Look at my posture and my hands, but I've built a number of these things myself. I've built them on existing homes. I've also found piece of land and build the house and the granny flat at the same time. And as a business we've helped a lot of clients in Sydney and Brisbane execute on this strategy. But what I wanted to say, as you mentioned it, is super, super simple to build a granny flat and people should not feel overwhelmed about it.
Yep. So first thing you need to do before you go ahead and do this is to make sure that you can legally build and rent out a granny flat on your block. We've talked about how to find the right block for these granny flats in the previous episode. So if you haven't checked that out, go to on-property dot Condo, you four dash five, 48, and you can see the details over there. So we're assuming that you have the right block to build this, that you know, that you meet the council regulations and the state regulations to build a granny flat. So now it's just a process of getting it built. And so the first step is obviously to get a design for the property.
Yeah. So the design is the most important thing. And you've always putting on your tenant hat or your own or occupy hat and going, what is the most functional design for this site? I've got a designer called the pumped on property. We pay, I pay one, which is a big rectangle. Um, you know, I wish I could draw this Adam, identify the technology, do it, but let's think about a big rectangle. You've got a big bedroom on one side you've got a middle area which is your lounge room with the kitchen. And then on the side you've got a smaller bedroom with a bathroom slash laundry. So it's a big box. That's the 55 to 60 square made design, which is pretty much what you can build in most places in Australia. And that rent's really, really well. And it's got functional space for everything that people nee...
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The $1,000 Project by Canna Campbell is a book about achieving financial freedom one step at a time. In this book review I talk about the core concepts in the book, what I liked about it and how I'm applying it to my life.
Get The $1,000 Project Book Get The $1,000 Project Audiobook Sugar Mamma Youtube Channel Transcription: Thousand dollar. Hey everyone. Ryan here from on property and in this episode I want to do a book review of a book that I've just read called the thousand dollar project by Canna Campbell. This book is a really good book to help you take significant steps towards your financial freedom, but to do it a little bit at a time. So I just finished reading this will actually I listened to the audio book and so I'm excited to share with you guys what this book is about, what I thought about it, and then you can decide whether or not you want to pick it up for yourself. So I first discovered Canna Campbell through her youtube channel called Sugar Mama. If you haven't checked it out, go ahead and check that out. She has lots of great tips on personal finance and budgeting and things like that. So I found her through there, discovered that she had written a book, purchase the book it got delivered, not gonna lie.
Uh, I got about a quarter of the way through the book, as you guys might know. I'm not a big book reader. I'm a big book listener now, so I love audiobooks, got about a quarter of the way through and then found out the audio book was coming out, so I waited. When the audio book came out, I listened to it and got through it in one day, so I just smashed through it as I was picking the kids up from school and then listen to it at night. So really great book and I love this concept of the thousand dollar project. So the concept is really simple and the concert is saving a thousand dollars at a time and then using that money to put it towards your financial future. And so that can be the way Canada does it, which is invest in shares and get passive income from shares or it could be anything from saving a house deposit to paying off debt to all of these different things.
But the core idea of the book, the core idea of the thousand dollar project is to get expansive with your mindset around money. So rather than just doing the day to day, living paycheck to paycheck, the thousand dollar project encourages you to look outside of your job, look outside of your current budget, and look for ways to earn extra money to save towards a thousand dollar project. So what you do is you set up a separate bank account online. So I'm with ing and so basically I set up a separate online savings account and anything that I can do extra, I then put into that savings account. When the savings account reaches the magical number of a thousand dollars. Then you go ahead and you apply that thousand dollars somewhere, as I said, that might be paying off debt and might be towards a deposit or it could be as Canada suggest to invest in shares that deliver you passive income.
So that's the core concept of the thousand dollar project. It's pretty simple, but just the idea to look outside of your current situation, to look outside of your current job and to look for opportunities of different ways that you can make money. Whether that be through starting a side business, whether it be from selling old things like selling your clothes or selling your old game cube controllers or whatever it may be. There's different ways to earn extra money to put towards the thousand dollar project.
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There are 3 distinct phases to property investing which can give you a good framework for what to focus on. Foundation, Acceleration and Freedom. Book A Free Strategy Session With Pumped On Property Resources Related To This Episode 2 Properties To Financial Freedom
What It Feels Like To Be Financially Free Transcription: Hey guys, it's Ryan here from on property and welcome back to another property investment episode where we're talking about investing in property and achieving financial freedom. Today I'm joined with me by none other than Ben Everingham, the buyer's agent. How's it going, Ben and Ryan, how? Amen. Yeah, really good. So in this episode, Ben, we're going to talk to the good people out there about the three stages of property investing and this is more specifically for people who are interested in investing using the two properties to financial freedom strategy that we've talked about. But before we get into your background, looks a little bit
different there. What's going on? You're in your room.
It looks like I'm in a wardrobe right now, I think from the camera angle, but um, we've moved into our new office which is super exciting for our business. So we were in a property that I owned, um, I've decided to sell that property and we built this other property for the Sydney office or which was my own home. Um, and it's now become the office and it's pretty kick ass. Maybe you and I can show some people on the next visit when you come in next week.
Yeah, well maybe next week I'll come in and we'll do like a walking tour,
get people to have the office and they can see it. For people who don't know. This is actually Ben's dream home, quote unquote Ben and Lisa's dream home. They built this home themselves. It was going to be their dream home and then they lived in it for a bit and turned out not to be and they now live in their new dream home. But yeah,
you having a laugh about this yesterday because a couple of epic clients came up and we'll talk about it all and I said like they'd been working towards being on the water for five or six years. We bought that piece of land that took about a year and a half to register about another half a year to build. We moved in for like eight months and then decided it wasn't for us and it's like, you know, we have a bit of a laugh about it now that I'm two sentimentally attached to the house. To sell it, so we thought we'd put the office in it.
Okay, so maybe not the soundest financial decision, but hey man, it feels good. Do it. Why not? So anyway, in
this video we want to talk about the three stages of property investing for those using the two properties to financial freedom strategy. For those of you who don't know about this strategy and haven't seen the episode on it yet, please go to on-property dot com dot a u four dash five. Oh eight. That's when me and ben spent about an hour talking through the strategy in depth, but the basic rundown is that you purchase two properties, build a granny flat on each of those properties. So you've got four incomes coming in, you pay those properties off, all those properties, pay themselves off over a number of years, 15 to 25 years, and once they're paid off, effectively you become financially free because the money that you're using to pay down the mortgage can now be put into your pocket. So it's just a really simple investment strategy for getting that baseline financial freedom, but something that can really help you as an investor when you are going along your invest...
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Most people have the goal to be rich, but we don't have that goal in our life. So why don't we want to be rich and what do we want instead? Resources Related To This Episode Our Minimalism Journey Transcription: You want to do the intro for this one? No, no, no. I didn't know what you say. He's just done this like 550 times. I've done this five times. He's turning around.
A lot of people have the goal in their life that they want to become rich, that they want to become extremely wealthy and we don't have that goal like as the pool filter and we don't have that goal in our life. So in this episode we wanted to talk about why we don't want to be rich.
What's not that we don't have any reach reach. We just don't want to be filthy rich. Yes.
And it's Kinda like, well it was sure it would be nice to be rich, but what it would take to become rich, we're not willing to do. That's right. So how are we going to start this and what are we going to tell them?
Well, I think early on without even realizing we made that choice, like when we first got married, we really did, didn't we? Yeah. We just never wanted to go to work. We just were like, why? We just want to go to the beach, so I don't care about no money, like thinking about the future.
Well, in the early days when we first got married, within our first six months of marriage, I was trying to, well, I was actually trying to get rich. I thought we were going to get rich and I thought I would get rich by making money online and so I didn't want to go to work because I was trying to get rich online and you would come home and you'd be like, well, why am I working full time? And you're just like chilling,
hanging out at home.
And then I'm like, well, don't work full time. Have you done one today? And so then he moved to part time. I did. And so we, yeah, that was within our first six months of marriage and then we had hardly any money. Um, but that was, yeah, I guess our first decision we made really early on that we are going to choose lifestyle over riches and we kind of went a bit extreme with it because then we didn't have money so we couldn't do anything. And we fought all the time about my, yeah, probably wasn't the best way to go about it. So. And then life moved on for us. We had our first kid, then I ended up getting a full time job, then we had our second kid, I got an internal promotion and I was working as a pharmaceutical rep and we're at the point where I was working full time and I was earning good money. But were we happy?
No, we weren't. You were working so much you would leave almost in the dark and you get home and it was dark and then you work at nights.
Yeah, late nights as well sometimes. So I was working in a sales role and I tend to put a lot of pressure on myself and work more than I probably should or more than what was expected of me. So I was doing a lot of nighttime trainings with these pharmacies and going above and beyond where I probably didn't need to. And then at the same time you had postnatal depression? Yes. Uh, and so it was kind of like I went to work because I felt like I needed to go to work to pay off our debts, which we, which we did pay off and to pay for like some of the bad financial decisions that we made, which were done in a previous video on some of those bad financial decisions. That was around the time that we bought the range rover, which was terrible. We didn't do that.
So I think we were getting to the point where we could, we were saving for a house deposit and will on...
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While financial freedom requires work, there are actually only two key elements required for financial freedom. Assets and Liabilities. Resources Related To This Episode $1000 Project By Canna Campbell
Why I'm Getting Rid Of My Credit Card Transcription: Achieving financial freedom isn't easy and it does require a lot of work, but there's actually just two key elements that are required to achieve financial freedom. So in this episode I want to talk about what those two key elements are, give you this framework, and so then you can go about creating financial freedom in your own life. One step at a time. Hey, I'm Ryan from on-property dot com dot EU. I hope people invest in property and achieve financial freedom. And when it comes to achieving financial freedom, there's two key things that you need. One of them is assets, and I'm going to use Robert Kiyosaki's definition of an asset here rather than the financial definition. And so an asset is something that generates passive income and puts money into your pocket. So you're going to need as many assets as possible and you're going to need as little liabilities as possible.
And so liabilities are things that take money out of your pocket. So basically the opposite of passive income. So if you have a loan to pay interest on that, that's a liability. If you have a house, even if you own that house outright, you've got to pay rates, you've got to pay insurance, you've got to pay water for that house, so they are liabilities, their expenses in your life that you need to pay for. And so the two key elements for financial freedom is as many assets as possible and as few liabilities as possible. And to achieve financial freedom, you just need more income coming in from the assets than you have going out from the liabilities. And that's how you flip the scale into financial freedom. So there's two ways you can do that. Obviously you can decrease your liabilities so you don't need as much passive income coming in, or you can increase your passive income or you can go ahead and do both.
So the key element here is that you're going to need to create some passive income in your life to achieve financial freedom. So a lot of people go after, after just owning their own home, owning their own home outright, which I think is a really great goal. But let's have a look at that from the asset standpoint. And the passive income standpoint, well, owning your own home and owning an outright can be great for reducing your liability. So if you need to pay rent or if you need to pay a mortgage, then that's some serious expense that you need to pay each and every week or each and every month in order to live in that property. If you can own a house and own it outright, you're taking away rent, you're taking away mortgage, and so even though you still need to pay rates, insurance, etc, that's going to be significantly lower than someone who's paying your mortgage or someone who's renting.
So by owning your own house, you're reducing your liabilities, which is a good thing, but if you don't have any passive income, it's never going to create financial freedom. So really there's only one key element to creating financial freedom, and that's assets that deliver you financial freedom. Reducing your liabilities is good because it means it's easier to achieve financial freedom. You don't need as much passive income from your assets, but really you only need that one key element, which is the assets that deliver you financial freedom.
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What is going to be a better investment of your time and money? A property course, seminar or hiring a buyers agent? Book A Free Strategy Session with Pumped On Property Resources Related To This Episode How To Do Suburb Research
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The Problems With House And Land Packages Transcription: For a lot of property investors, there may come a time where they feel like they need some help to take them to the next level in their property investing. That might be the kick them out the bomb to get them to buy that first property, or maybe they've hit a wall and they want some help moving forward to grow their portfolio, but is it better to spend that money on a property coach attending a seminar or to actually go ahead and hire a buyer's agent? These are all really expensive options, so it's important that you know which options best for you before you go ahead and pay the money. Hey, I'm Ryan from on-property dot com dot EU. I help people invest in property and achieve financial freedom and that's what we're going to be looking at in this episode. Whether or not you should hire a property coach, attend a seminar or hire a buyer's agent.
So what we're gonna do is we're going to look at what each of these options are. Then we're going to look at some of the pros and cons of each of these so you can make a decision for yourself as to what you think is worth your money. If anything. Okay, so let's have a look at an overview of what these things are. So property coach, look, to be honest, there's not that many property coaches out there, so maybe I shouldn't have included it in this video, but a property coach to me would be a mentor. Somebody that you would sit down with, you look at your personal situation, look at your financial goals, and to help walk you through exactly how to achieve that as well as keep you on track to say, okay, what's the next step for you? What do you need to do next?
And then check in with you. Have you done that step? So the only property mentors that I've seen out there where you've got your free strategy sessions with pumped on property where they do that sort of mentorship model in a smaller way, but the other mentors I've seen out there, the kind of mentors, but then they're also trying to sell you new build property that they make a commission on, which I believe is kind of like a conflict of interest. So in terms of coaches and mentors out there, in terms of paying for them, I don't think there's that many great options that I know about. But I do know that a lot of people get property coaches and mentors for free. Just people in their life who have already done it and achieved it. You've also got seminars or courses, so seminars or courses generally costs in the range of maybe one or $2,000 up to five, maybe even $10,000.
And so this could be an online course where they take you through a high level concept and how exactly to implement that concept. So this could be something like Jane [inaudible] Smith's course on the ultimate guide to renovation, which is a great course on how to make a profit through renovating property. She goes through everything from selecting the right suburbs and the right properties to different types of renovations and how to implement them. So that's quite an expensive course in the thousands of dollars, but there's a lot of great content in there.
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Interest Only vs Principal and Interest loans can have a huge impact on your cash flow and can mean the difference between a property paying for itself and then some and you having to find money to keep the property afloat. Resources Related To This Episode Property Tools
On Property Membership
Treat Property Investing Like A Business
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ING Mortgage Calculator
Compare Interest Rates Transcription: Having an interest only loan versus a principal and interest loan can have a serious impact on your cashflow and can mean the difference between the property paying for itself or you needing to find money to keep that property of float. So in this episode we're going to be on really basic and looking at how principle and interest versus interest only can affect your cash flow. Hey, I'm Ryan from on-property dot com dot EU. I hope people invest in property and achieve financial freedom and cashflow is vital when it comes to investing in property. You can be in positive cashflow position where the property pays for itself and then some or a negatively geared position where you're constantly paying money out of your pocket each week in order to keep those properties afloat and if you have to pay too much money out of your pocket than the whole tale of cards can come crumbling down.
And so I don't want that to happen to you. I want you to be aware of how these different types of loans can affect your cash flow. So let's jump into it. We're going to be looking at this calculator from ing, which is a mortgage calculator. If you're listening along on the podcast, then I will be talking through all these numbers, so don't worry. You don't need to watch the video, but what we're going to do is start with a loan amount of $100,000. Now that is not a realistic loan amount to buy a property here in Australia, but what I like about using 100,000 dollars is we can see how this difference looks on a small amount and then it's really easy to scale up from there. So we scale up to $500,000. We're just five x, whatever our results are. If we scale up to a million dollar loan, then we just x whatever we're looking at, but this can give us a really clear indication of the different.
So we're going to be looking at a loan period of 25 years. We're going to be looking at a loan amount of five percent, which is probably a bit high for today's loan amounts, but I like to use five percent. We're going to be looking at weekly repayment amounts because I like weekly because then you can compare, okay, how much extra weekly rent, what I need to be able to cover this extra cost, and then we've got principal and interest here so we can see on this $100,000 loan across 25 years at five percent per annum. We're looking at $134 80 per week. Now we're gonna jump over to property tools.com dot a u, which is the tool that I created myself in order to be able to quickly assess the cashflow of a property to see whether it's going to be positive cashflow negative and by how much.
If you're on, check that out. Go to property tools.com dot a u and you can sign up for it over there. So we're going to put in a purchase price of $100,000. We won't worry about the rental income at the moment. Interest rate of five percent and deposit. We're going to put a zero percent just so we get that full loan amount here of $100,000. Now if we scroll down, we can see the interest cost here of $96 and fifteen cents per week. So we can say with interest only at five percen...
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In marriage and life you make some good and some terrible financial decisions. Here are the best and worst financial decisions that we have made in our life. Resources Related To this Episode Barefoot Investor Bank Accounts Explained
Our Budgeting Fails Transcription: In life and in marriage, there are some good financial decisions that you make and there's some bad financial decisions that you make. And so we thought that it would be fun to do an episode on our best and worst financial decisions over the last 10 years of marriage. So Hey, I'm Ryan from on-property Dotcom Day you, I hope people find property and achieve financial freedom. And today I'm joined by my wife. She's Kelly. Say Hi, I'm Kelly. Okay. And so we want to talk through. This was kind of funny like going through this list and thinking what's our best and worst financial decisions we like immediately filled out the worst color like we had. Like really we have no problem locking in this day and it took us a bit longer to work out what our best decisions were. But yeah, I think this is going to be a fun episode to talk about this of stuff.
So should we do like one best one where. So she would just like start with the worst because they're the ones kind of alone with. Okay. So some of the worst decisions that we made financially, the first one was I bought a bunch of USB sticks from shine, so this was at the time were seven years ago, quick get rich quick scheme, but the idea was important things from China and then sell them on Ebay. And so I'd done some research into it and been on Alibaba and thought I thought I found an opportunity in the market and bought a bunch of USB sticks to sell on Ebay. And the other time we were living in your mom's like granny flat and we had no money basically. And so I spent about a thousand dollars on these USB sticks and they ended up, they ended up being fake.
And so I sold a bunch of them on Ebay, found out they were fake because people started complaining. And so then I did the only thing that I thought was right, which was refund everyone. And so not only did I have to pay the thousand dollars, but then there's all these like Ebay fees and everything as well. And that was basically our life savings at the time. Yeah. So that was a pretty big mistake for us at the time and while a thousand dollars might not sound a lot to people out there or it might be alive for us a lot for us, for us at the time it was a lot of money and I dug us into a pretty big hole. But yeah, noodles for awhile. And so another bad decision that we had made actually prior to that was we were going over to New Zealand for a holiday slash care was going to be working over there to do up a new freedom store that they were opening and we thought, you know what we're going to be like on holidays for two weeks. One, why pay rent for those two ways? Story. It's like, yeah, we're out. And they come with the doorway. That
dumb.
It was so wet, we don't want to pay two weeks it was about 300 bucks a week or three slash 20 a week. At the time this was like $600. So like yeah, we don't want to do that. So let's put our stuff in storage. And then when we come home, will I live with my mum for a bit until we find another place that was so stressful. It's so stressful. And the apartment that we gave up was awesome. It was good. Hey, you could. That was like, Oh shit. It was like three. It was all white as well. So that was, that was a really dumb decision and I think we have probably a dumb financial decision,
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Small changes in interest rates can have a huge impact on the cash flow of a property. In this episode we look at some examples of how cash flow is affected by rising interest rates. Resources Related To This Episode Property Tools 2 Properties To Financial Freedom Transcription: Small changes in mortgage interest rates can have a huge impact on the cashflow of your property, turning a positive or neutrally geared property into a negatively geared property really quickly. A lot of people do the sums on the property at the current interest rate, but they don't think, okay, what if interest rates go up by half a percent? One percent, two percent, how's that going to effect my cash flow? So in today's episode we're going to look at how changes in interest rates can affect your cash flow. Hey there, I'm Ryan from on-property dot com dot AU. I hope people find it and invest in property and achieve financial freedom. And one of the things that you should be looking at when you're looking at investing in property or when you're looking at your portfolio is what is your cashflow position. So what we're going to do is we're going to go through some basic examples about how rises in interest rates can affect your cash flow.
And then we'll look specifically at some properties as well. Okay, so let's just start here. I found this property in Brisbane with the price guide for 450,000 to $500,000 that's renting for $765 per week. So I'm going to go over to this tool over property tools.com dot EU, which is a tool that I created myself. And if you want to get access to that, then you can go to property tools.com dot EU and sign up for it. And let's just have a quick look at the cashflow of this property. So we got a purchase price of 500,000 and then we've got rental income of $765 per week, which is giving us an estimated and weekly cashflow before tax of $213 per week or about $11,000 per year. And so this is looking at a five percent interest rate. And so we changed this interest rate up to six percent.
We can see that our cash flow drops from around $11,000 per year to 7,000 per year. And if we got to seven percent, we're still positive cashflow. Uh, even with this one, when we go to eight percent, it goes negative. So let's have a look at this and have a look at how cash flow is affected by interest rises or by the changes in interest rates. So using property tools, again here, let's take a loan amount of $100,000 at an interest rate of five percent, and then let's up that interest rate and see how much extra per week it's going to cost us. So I've put the deposit at zero percent, so we've got the full loan of $100,000 there and this actually capitalize the interest cost for us. So we can say $96, 15 per week at five percent. So let's say we raise this up to six percent, we're now looking at paying interest costs at $115 and thirty eight cents.
So that is about an extra $19 per week on $100,000. Let's say we again to seven percent, then we're looking at 134 and sixty two cents. So we're going with a two percent increase. We're gone from $96 up to $134, so that's an extra $38 per week. Now $38 per week doesn't sound like a much, it doesn't sound like much, but we're talking about $100,000 here in mortgage. So let's say we were to raise that up to a million dollars and if we had a million dollars in mortgage and saw that two percent rise, then instead of it being $38 per week, extra we have to pay is now $380 extra per week that we need to pay. So as you can see,
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Sometimes less is more and we have gone on a journey from extreme minimalism to a more conservative minimalistic approach to life.
In today's episode we share our minimalism journey and how it has changed our lives for the better. Resources Related To This Episode Living Big In A TIny House
Minimalism, A Documentary About The Important Things Transcription: So sometimes less is more and an ally. We've gone through a big journey towards extreme minimalism when we lived in the van and then we've come back out of minimalism but still have minimalistic aspects to our life. So today we wanted to talk a bit on minimalism, how it's changed our life and how we think it could improve your life as well.
She probably thought, why minimalism? Okay. Like why we even like where did we even hear about minimalism avenue the night?
Well we started learning about minimalism when we started looking into tiny houses and then started looking into moving into the van and minimalism. So if you haven't heard of tiny houses before, they're, these houses that people build on trailer bases basically about what? Two and a half meters wide by seven or eight meters long. And so they build these, they look like matchbox, how's it? It's like they're really cool and I got super except assess with them and watching them on youtube. And a lot of people who are in these tiny houses talk about minimalism because they need to cut down the amount of stuff that they have in order to live in these tiny spaces and how by cutting down their stuff, they're actually feel happier and more free and we were feeling pretty trapped at the time and I was in. It was Kinda like, oh this is, this is actually an exciting idea that by having less you can be happier.
Yeah. And I think as well our life is just full of junk. Like we just always felt like the house was so messy and allies would just messy and disorganized. We would always have to spend all of our free time organizing our junk. So we got to the point where we were like, well, we just don't have any junk. Then we can spend all of that time that you would be organizing your junk. Doing something fun.
Yeah. And because kids, kids are gross rubbish for the kids. Just like they keep everything. Our son, grandson, he's six. He is a hoarder. He is such a hoarder that when you take a toy that is broken and you throw it in the Bin and then you put something on top of it so the kids don't know that you're telling me. Somehow he finds it, gets it out of the being and keeps it. So yeah, the kids have a lot of stuff, but we also had a lot of stuff, a lot. I had so many clothes that I never would wear basically. Like how many beds, shirts do you read? Okay. So let's talk about the process that we went to start downsizing and minimalizing our lives.
Okay. Well I think we just started with it was what is it? Every wardrobe or it was something like if you haven't touched or used that thing in the last six months, you throw it in the bin unless it had like serious sentimental value like baby or like photographs
or something like that. Yeah. So there was a lot of stuff that was just in tubs. We just had all these tabs that would just be eating in our garage. Like every time I moved houses like 15 heavy tubs of all this like crap who's kept lugging it around with us and so I think our approach to becoming minimalist because we knew that we were moving into the van. It was very focused on what's going to fit in the van and how do we need to change our life for the van.
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When setting goals is your fear of DNF'ing causing you to set boring goals that are too easily attained and won't motivate you? What would your goals be like if you weren't afraid to DNF?
Book A Free Strategy Session with Pumped On Property Resources related to this episode: 4 Hour Work Week Tim Ferriss Transcription: Hi there, Ryan here from on property and today I want to talk about this concept of are you afraid to dnf that sentence doesn't make sense to you right now. Don't worry, it will by the end of the video and not talking specifically about property today, but I'm talking about goal setting and kind of the counterintuitive approach that I have to goal setting and I want to stretch your mind today around how you go about setting your goals and give you the framework that I use to set my goals that might be a bit different to yours and you can decide whether or not you want to incorporate that into your goal setting or not. This definitely isn't for everyone. So are you afraid to dnf so dnf in running because I'm looking at running an ultramarathon at the moment. DNF did not finish, so a lot of people obviously don't want to enter a race and finish with a d and f against their name, which means they did not finish the race.
Most people go into a race, they want to finish the race, they want to have a personal best, and I find that often when it comes to goal setting as well, people are afraid to dnf. They're afraid to even enter a race or to set a goal that they might not finish and so often people will set these goals that are just too achievable that it makes them really boring. Like I'm not talking about setting goals that are completely unachievable for you, like I want to be a billionaire in the next year when you're currently earning $50,000 a year or something like that. But I am talking about stretch goals. Something that you could reasonably achieve, but it would actually. You would require a massive change in your mindset or in your life in order to achieve it. And there's a high chance of you dnf in on that goal or did not finish that goal.
So let's talk a bit about me with this like ultra marathon thing and then we'll bring it back into this idea of goal setting in general that you can apply to your finances. You can apply to your property goals or you can apply it to any aspect of your life. So as you may know, have you seen other videos of mine? I have what I call pseudo financial freedom, which means I have a version of financial freedom where I don't really need to work, um, but I worked to kind of keep things going and to grow my business so I could not work, but over a number of years, eventually my income would dwindle and so I'm at the point at the moment, but an escape working at that longterm financial freedom. But being in this position allows me to try a lot of different things that a normal person wouldn't try and to set goals for things that a normal person wouldn't set.
Like last year I had the goal that I want it to become competitive in super smash brothers melee. And so I did practice in that for six to 12 months. I practiced that game hours each day trying to get better at it. I eventually gave up on that goal for a number of reasons, but just it was going to be too much effort and uh, my life changed and no longer became a priority. And so I put that aside and then somehow I've been reading, I love reading psychology books and stuff and I was reading about how to become the best at something and I read a bunch of books about people who do these ...
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Sometimes it makes sense to invest in your happiness and relationships at the expense of your long term financial success. Me and my wife Kelly talk about how we have approached investing in happiness in our lives. Resources Related To This Episode All In The Van Transcription: Sometimes when it comes to finances, it can be really easy to focus on your investments and focus on property because it all has a figure and you can see your net worth grow, but it can be a lot more difficult to spend money on your relationship and to value that relationship because it doesn't actually have any figures attached to it. So we wanted to create an episode today to talk about how we've kind of approached investing in our relationship in the hopes that it'll help some people out there. So. Hey, my name is Ryan today. I have with me Kelly. Hi. Can we have, you don't know is my wife. We've been married almost 10 years. Can you believe we've got three kids as well? Yeah. And we've got a pretty good marriage. We're pretty happy. Pretty good, pretty happy. We still enjoy each other's company so that's good. And we still laugh a lot. Um, but yeah, this idea kind of came about and then we were talking in the car about it and you came up with this idea that will you explain it to them?
Well, what we were talking about how people put value on specific things in their lives and that I think a lot of the time your relationship kind of gets forgotten because it's not like natural for you to put like a monetary value in your relationship. Like we were talking about. We, we're talking with friends about how we haven't actually like invest in necessarily yet because for us we chose to invest into our marriage and our kids instead of that.
And I always felt like I've always had this thing. I don't know since before we even met that I was like, okay, if I get married one day, no matter how much success I have in my marriage falls apart, then no success is worth that. And so I don't know if that came about through watching my parents marriage or like what it was, but I just always felt like yeah, because you're the family unit and being happily married is more important to me than financial success. And so we've always kind of made decisions based off that. But I feel like a lot of people don't because like you were saying, it's so easy and exciting to track your finances when you're saving towards a house or when you're investing in property. You can get your property revalued, you can see how much it's worth. My net worth is x amount. I've got a million dollars in equity or whatever. You can't say
that you can't track the health of your relationships. Can you like there's no way to be like, yeah, you've done so good this week.
Our relationship is currently with $200,000 in. Previously it was only worth $100,000. You can't do that. And so. Well I guess why don't we talk about some of the decisions that we've made that have been bad loan term financial decisions. Like if you just look at it from like a financial standpoint, we could have that into property or into something else. But we chose to instead invest into our relationship.
Well is it. I think it's not, it's not just about our relationship, it's like investing into happiness. Okay. So for us, like our relationship is a big part of that happiness. So for us like we can easily kind of just say that, but I think the overarching umbrella that it kinda comes under is like your emotional happiness and wellbeing.
https://www.youtube.com/watch?v=Ibnpdo6HCh4
How do you find suburbs that are both low risk that are also likely set for good future capital growth? Free Webinar: How To Find And Profit From High-Growth Areas In this episode we look at: - The 'Portfolio Killer' mistakes that people make when buying property- How to Dot Map Technique can uncover the ripple effect- How to lower your risk by avoiding red flags- What are the indicators of suburbs that have gone up in value- How two suburbs with a similar price can be SOOOO different in terms of growth potential and risk factors We also go through the data and do some analysis on a couple of suburbs in Melbourne so you can see side-by-side how we compare one suburb to another. Free Webinar If you liked today's episode then Jane is hosting a free webinar where she goes into this topic of finding high growth suburbs in more detail. I have attended many of Jane's webinars in the past and they are always jam packed with useful information and this one won't be any different. You owe it to yourself to get on there and learn how to find these high quality suburbs to invest in. Click here to sign up for the webinar Transcription: You Ready? I'm always ready when it comes to investing in property. One of the most important things that you need to do is choose the right suburb. So today I have with me property expert and suburbs, select expert Jane Slack Smith's. Hey Jane. How's it going today? Good, Ryan. Thank you. Yeah. So Jane has been a friend of the channel for quite some time, hasn't been on for over a year. We have talked a lot about self selection in the past, Jane, in relation to renovation because I know that you have done a lot of renovations and talk to people about that. So I've done that. But in this episode I wanted to talk more broadly about suburbs selection, how to avoid those bad suburbs as well as how to find those good suburbs for your everyday investors. Absolutely. And you know, one of the things, um, I, as you said, I love renovation and renovation is one of the three prongs of my trading strategy. So having been an explosives engineer and you know, really risk adverse, I wanted to kind of risk assess all the risks in property and and kind of, you know, shortcut the way to make money without making mistakes. So I came up with three ways of making money, money and one was to buy below the market. So you had had intimate knowledge of the market in the suburbs and then add value and I was using renovation is that technique and some people use your granny flats or development and then buying a high growth area because all they can make some short term gains with buying below the market and renovating, you know, if you can get in a growth area, that's where the money is. So you know, getting the right suburb and the right property and the right street is so critical to whatever your next part of your strategies. Yeah. And for those of you who don't know, I've actually been doing Jane's one of Jane's courses on suburbs selection and she talks a lot about the stuff that I already do, but then she adds on top of that as well. So she has a great deal of knowledge around this stuff as well as knows where to pull the data from and stuff like that. And I really love the approach that you take. It's really in line with like the research that I've done in the past as well. So let's talk a bit about first the mistakes that people make when they choose a suburb. You've got a webinar coming up and you're going to be talking about these portfolio killers, I think you called them, which I love, but people often make so many mistakes when they invest into an area. The biggest mistake that I see is that they just don't even do any research to start with, but what are some of the things that people should avoid when they're looking at suburbs? Actually just on that point, Ryan, I spoke to one of the ceos of one of the biggest property management companies in Australia just last wee...
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So many property gurus talk about capital growth as the only way to make money in property. I want to challenge that assumption today and ask the question "Do you even need capital growth to achieve financial freedom?" Resources Related To This Episode 2 Properties To Financial Freedom 4 Properties To Financial Freedom Transcription: Do you need capital growth in order to achieve financial freedom? Like do you actually need capital growth in order to be financially free? That's what I want to talk about in today's episode because so often we just think the only way to invest in property is to invest for capital growth purposes and we're going to negatively gear in order to achieve that. So I kind of want to challenge that assumption in you today and challenge how much you rely on capital growth and not saying don't go for capital growth. We love capital growth obviously, but just whether or not you need it. So let's look at that in today's episode. Hi. On Ryan from on-property dot com dot EU. I hope people invest in property and achieve financial freedom. And this topic has been on my mind ever since I recorded the two properties to financial freedom episode with Ben.
Actually ever since I had that idea because a lot of you might not know that the two properties to financial freedom strategy actually came about because we had a four properties to financial freedom strategy. So the four properties to financial freedom required you to purchase to capital growth properties in the beginning guys. Okay. I just got kicked out of the room because my kids came home from school. My daughter was upset because she was feeling a bit six. She's crying. So I'm back up in my office now to finish it off. So as I was saying, the two properties to financial freedom came out of the idea and a strategy called the four properties to financial freedom where you're required to purchase to capital growth properties in the beginning. So to capital growth properties, purchased them first with the goal of them going up in value.
Obviously that's capital growth, right? And then you purchase to cashflow properties, so houses that you then build granny flats on. So you've got four incomes coming in. So the whole goal of this for property strategy was you buy the two capital growth properties and those capital growth properties, you sell them and then you pay off the cash flow properties. And so then you have cashflow properties that are completely paid off and you've now achieved financial freedom. Okay? So you require that capital growth in order to achieve financial freedom in the period that you want. Now, the thought that I had when I was out surfing was that all, my gosh, the only purpose of the capital growth properties and the only purpose of the capital growth is to pay off the debt on the cashflow properties, but the cashflow properties will pay themselves off anyway because they're positive cashflow and because you're going to pay them off over time anyway, so you don't actually need the capital growth in order to become financially free.
So let's explore that idea of how cashflow can deliver you financial freedom. So in that two properties to financial freedom strategy, you purchase two properties and build to granny flats on each of those properties and you get a rental income of above seven percent on those properties. Over time, that rental income is going to go up as well. You're going to pay off those properties over time. But the exciting thing about those properties is when you buy them and bu...
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What exactly does it feel like to be financially free? So many of us strive for financial freedom without actually knowing what it's going to feel like when we get there. That was exactly my experience.
In this episode I want to share what it felt like for me achieving financial freedom, both the good and the bad (and yes there is bad). I share this in the hopes that I inspire to to seek financial freedom first, and extreme wealth second (if ever). Resources Related To This Episode: Struggling With Financial Freedom Episode @ 28 years old Our "All In The Van" YouTube Channel 2 Properties To Financial Freedom Transcription: A lot of people invest in property with the goal of becoming financially free or with a goal of becoming extremely wealthy, but it's actually really hard to experience what it's like to be financially free unless you actually achieve it. And so in this episode I want to talk about what it feels like to be financially free. This episode is not to stroke my own ego or to do anything like that. The goal of this episode is to convince you that financial freedom is more important than riches and wealth. So I'm talking like a baseline level of financial freedom where you can pay for rent. You can have a roof over your head. You can live a decent life in not going to be a millionaire or it might be a millionaire, but you're not going to be super wealthy by any stretch of the imagination, but you've got your bases covered.
So then you can go out and explore who you really are, what you really want, and whether or not you actually want to become wealthy. Because one of the biggest things that happened for me was that once I became financially free, I discovered I don't actually care about being extremely wealthy. I don't care about the luxury or the cars or things like that. And so if I have striven striven, is that even a word? If I strived in order to achieve a high level of wealth and wasn't financially free until I was super rich, then I wouldn't have discovered that until a lot later and would have spent a lot of years of working that I didn't have to. So the goal of this is to hopefully convince a few of you out there to aim for a lower level of financial freedom. And then when you achieve that and get to experience it, then you can decide from there whether you want to go for the Richard and you want to go for the extreme wealth or if you're happy with your level of income and then you just get to experience life and go through all of these experiences.
So what does it feel like to be financially free? Hi, my name is Ryan Iran on property.com dot a view. I help people invest in property and achieved financial freedom and I achieved financial freedom through property investing, but through my businesses and more specifically through passive online income, I call it pseudo financial freedom because it's not the longterm financial freedom that property delivers where you're basically guaranteed to have financial freedom for life. This is financial freedom where a don't need to work much and the money keeps coming in, but over the course of a number of years there are market changes that can happen that can affect that income. And so it's not super long term, but it's a version of financial freedom where I have a few years where I don't really need to work, but I choose to work. So just wanted to clarify that. Um, so I have pseudo financial freedom and I achieved that at about the age of 28.
I think I have a video from about 18 months ago where I had...
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Book Your Free Strategy Session Resources Related To This Episode Rich Dad Poor Dad Book Barefoot Investor Barefoot Investor Bank Accounts Explained Questions About Barefoot Investor Bank Accounts 2 Properties To Financial Freedom Transcription: So like most people in Australia, I have a credit card or me and my wife do, it's from St George. Mastercard could eliminate $2,000, but we are actually working to completely get rid of our credit card. And then this episode I'm going to talk about why that is and why I think for us it's going to be best not to have a credit card, so this might help you. You might want to assess whether or not you want credit cards in your life or whether you actually want to step away from credit cards, which is what me and my wife will be doing in the future. Hey, I'm Ryan from on property.com dot EU. I hope people invest in property and achieve financial freedom. And for me, getting rid of the credit card is all about financial freedom and maximizing the cashflow as well as simplifying my life and simplifying my banking.
Now, if you haven't read it yet, Rich Dad, poor dad is an amazing book and one of my favorite things in that book is how he redefined the word asset and redefine the word liability. This completely changed my life when I read it. I sat down and read basically all of his books when my wife was pregnant with our first kid, so that was about nine years ago and I achieved financial freedom and about seven years or six years after reading his books through my businesses and through applying these principles and so he redefined asset and liability. And so what most of us think when we think of an asset is we think of something that's worth value. That it has some sort of value that you could sell it. So your house might be an asset. Your car would be listed as one of your assets.
My gamecube controllers that are worth about $50, age would technically be an asset, but Robert Kiyosaki takes it further and says no, and asset is not about whether or not something is worth money or whether or not it holds value, but an asset is about what that item does to your cashflow. And so an asset is something that puts money into your pocket and so delivers you passive income and then also redefines liability as something that takes money out of your pocket. And so this is an ongoing expense. And so that's why it was so controversial when it came out because he says, your house, the one that you live in is not an asset because living in that house costs you money. Even if you completely paid off the mortgage, you still got counselor rights, you still got insurance, you've still got maintenance. So from a cashflow perspective, it's a liability.
And so you may or may not agree with these terms. It's fine. Like if you want to call your house and asset, that's fine. Pick another word for things that generate passive income, but just this idea of focusing on in your life, building assets and working for assets, working to acquire assets and then getting rid of the liabilities in your life. And this is why I've come to the conclusion that we're just going to get rid of a credit card because it is a massive liability for us. I also recently read the barefoot investor. If you haven't checked out that book, go ahead and check it out. Uh, talk exactly about how I set up my bank accounts as a result of that book in episode five, hundred and 10, so I go to on property.com dot a u four slash 5:10 if you want to learn more about the barefoot investor bank accounts,
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Often property investing seems extremely complicated. This leaves many people feeling overwhelmed and unable to take action.
Let's get back to basics and establish a simple way to invest in property and achieve financial freedom. Then if we want we can grow and expand our strategy from there.
Book a Free Strategy Session with Pumped on Property Resources Related To This Episode: 2 Properties to Financial Freedom Video Ask a question Transcription: Often property investing can seem extremely complicated and extremely overwhelming and the biggest problem that I see people having is that they don't actually stop. And so in this episode I want to talk about how you can make property investing simple, not easy, not quick. This is not going to get rich quick and a really easy way to do it, but it's just going to simplify it. Property investing for you. So you'll have a really simple strategy and then you can go out and expand from there if you want to. But this simple strategy can allow you to actually achieve financial freedom. So what is this? Um, hi, I'm Ryan from on-property dot com dot EU. I help people invest in property and achieve financial freedom. And I do see people getting extremely overwhelmed with how they need to invest in property. They might think they need to buy 10 properties in 10 years.
They might think they need to do development or subdivision or strata titling or commercial properties and mixing all of these different strategies in order to make money in property and in order to achieve financial freedom. And so today I want to share a really simple strategy, not going to be the fastest strategy to make money in property, but it's a really simple way to look at achieving financial freedom through property so you can start with this and then as your skills improve, then you can add in the more fancier stuff if you want to. And the strategy is this super, super simple guys, it's by property, pay off debt, and then live off the rental income for that property. That's it. Okay. You might already know about this. You may have heard of this before, that you can buy and hold property and that you can pay off the debt over time.
And once the debt's paid off your largest expense, which is generally your mortgage, you no longer have to pay, which means the bulk of the rental income is going to go into your pocket and with enough properties and enough rental income, then you can live off that money. So me and Ben talked about this in our two properties to financial freedom video. So if you haven't checked that out, do go ahead and check that out. I'll leave the links in the description down below or go to on-property dot com dot a u four slash five, oh eight, and you can check out that strategy over there, but basically the idea of that strategy was to purchase to high quality properties, will to granny flats on those properties. Then you'll have a over seven percent rental yield and your properties will be positive cashflow. You then focus on paying those properties off over the next 25 years or ideally speeding that up and paying them off quicker and then once they're paid off, the money that was going from those properties to pay off the mortgage now goes into your pocket.
So let's jump into a little bit of maths just to make this more straightforward for you guys or just so you can see some more concrete examples. A lot of people use the amount of 80 percent of rental income as a standard, so you've got 100 percent of rental income coming in.
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Expanding on my episode about the Barefoot Investor bank accounts I talk in more detail about practically how this way of banking works in my life. Resources From This Episode: Barefoot Investor Book Barefoot Bank Accounts Video ING Bank Accounts $1,000 Project Book Canstar NZ Transcription: I recently did an episode on the barefoot investor bank accounts and bucket, so I told about exactly how the barefoot investor recommends you set up your bank accounts, tried to make it really straightforward for you guys and also talks about the alterations that me and my wife made in order to make it work for us. So the barefoot investor bank account strategy is a great framework. It's a great way to manage your money. We had to make some alterations because it got a bit confusing for us, so we just made it work a little bit better for us and I think that's a good thing. You take the cool concept and you tweak it for yourself and you make it work for you and for your relationship and for your family and your banking accounts, whether you be single or whether you'd be partnered or whatever it may be.
Anyway, I received some questions from calum from New Zealand and so I thought rather than just writing back to this email, I would create a video answering these questions because I feel like it would be useful to a lot of people out there who have either read the barefoot investor and I'm interested in setting up these bank accounts or people who aren't quite there yet, but the barefoot investor and what I talked about is kind of peak their interest and they want to learn more. So I hope you find this useful. We're going to go into more detail in exactly how I manage my bank accounts and transfer my money and we're going to talk about things in more detail. So yeah, I hope that you enjoy this. Hi, I'm Ryan. If you don't know me already, I'm from on-property dot com dot a u and I help people invest in positive cash flow properties and achieve financial freedom.
And so I love these questions from Callan. So I'm going to go in and read the email to you guys and we'll go through and answer these questions. So callum, I hope that you find this helpful and same to everyone else who's listening. Before I read this email, just want to let you know if you haven't read the barefoot investor book, highly suggest you check that out. Go to on-property dot com, forward slash barefoot and I'll link to booktopia where you can purchase that book and get it shipped out to you. I recently just purchased this book, the thousand dollar project from Booktopia came in a couple of days, so really happy with their delivery and their service. So again, that's on property.com forward slash barefoot. And if you want to watch the previous episode that's On-property Dot Com dot a u four dash 5:10. And that's where I talked about the bank accounts in detail.
And so you can check that out. I'll also leave the links to those in the description down below. Let's get into the email. Hi there, appreciate your time. And if you could just answer a few questions I have after watching your video about the barefoot investor book. I'm from New Zealand and uh, found the book to be amazing and I'm determined to set things up for me. I'll be at with the New Zealand version of things, which is one of my points for you also. So they asked a question about that later. So question number one, I liked your idea of the pot and the everyday spending accounts. So do you have a card for each and with the everyday spending,
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Should you buy an investment property or your own home first? This is a major life decision and should NOT be taken lightly. In this episode I give some insights to hopefully make this decision easier for you. Resources Related To This Episode 2 Properties To Financial Freedom Transcription: Tonight I want to talk about the idea of whether or not you should buy an investment property or whether or not you should buy your home first and now this is not a decision that I think you should take lightly. Obviously this is a really important decision for you and for your family. This is going to be a massive purchase and a lot of people want to own their own home, so I'll just go straight out there and say that there's no right answer to this, so I'm not going to be saying what you should or shouldn't do, but I'm going to look at some of the pros and cons of each decision and then you can hopefully I'll help you make that decision for yourself because this is a big one. A lot of people want to own their own home. A lot of people also want to invest in property and achieve financial freedom, so what's going to be best for you and what are some things that you can look at?
One of the things I think people don't realize when they're making this decision is that they often choosing between the idea of security and having that security because having a dream home or having a home that is your own that you pay off and own outright, that provides people with a lot of emotional security. No one's going to kick you out of that home. Banks can't foreclose on you once you own it outright. If you're renting than the people who are in the home can't kick you out. That home is yours. You've got security for yourself, but especially being. If you're like me, where you're married with kids, you've got that security that you've got a place to raise your family, that you're always gonna. Have a roof over your heads. So choosing between the security and the potential of freedom and so freedom is the ability.
Well, I believe to do what you want with your time. And for me, freedom has always been way more important than security. So I'm not saying that freedom should be more important than security for you, but I will let you know that it has always been more important for security for me. And my wife had basically saved up a house deposit ourselves, but we were unhappy where we're living on the gold coast. So we were looking at purchasing property at the time. Actually we've done this twice. We saved up a deposit, we paid off debt and we were basically one commission away from having our deposit ready to buy a house on the central coast and we gave all of that up in order to move up to the gold coast. So we chose freedom in which shows that we wanted to move up to the Gold Coast to get a lifestyle and so I could start my business.
And so we gave up the house deposit, use that savings for the move and to support us while we got my business up and running. So we chose freedom then and then we were on the gold coast. We were in a financial position where we could purchase a house or would be able to purchase a house in the near future, had the deposit, but we weren't happy on the Gold Coast. Um, we decided that we wanted to try something radical, something different, and so we purchased a sprinter van and then did that up and went traveling as a family in the van. So again, we put our savings into that and chose freedom over security because the security wasn't making us happy and we weren't happy in that.
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Something I didn't realise would happen as I paid myself first is the momentum that would build once my savings became too large to touch.
Buy the $1,000 Project Book Here Transcription: Hi Guys, Ryan here from on-property dot com dot EU, and in this episode I want to talk about how you don't need to be financially free in order to quit your job and to live the life of your dreams. So how does that work? That's what I'm going to be talking about in today's episode. VII, May. My name is Ryan. As I said, I run on property dot condo. You, I help people find and invest in positive cash flow properties. And today I want to debunk the myth that you need to be financially free. In order to quit your job. You need to be financially free in order to live the life that you want to live because it's actually not true. And so this idea comes out of the video that I did with Ben Everingham on two properties to financial freedom. So if you haven't watched that video, you need to go ahead and check that out.
That's an on-property dot com. Dot Eu four dash five. Oh, eight. So go ahead and check that out if you haven't checked it out already. But there's, that's the idea that there's a way to invest where the properties themselves will work for you and go on to create the financial freedom for you. So you don't need to work hard, strive for 15, 20 years to create the financial freedom. The properties are going to do that for you. They're going to be your little minions in the background working for you. So most people, the way they invest is they're investing for capital growth or trying to grow their properties. They're selling properties, buying new ones. It's negatively geared, so they've got to keep paying for it. Kate, working to pay for it. This idea suggests that you invest in properties that pay for themselves, so positive cash flow properties.
And what we talk about in that episode is you buy two high quality houses and you build a granny flat on each of those. So you've got to high quality properties with, for incomes coming in, your positive cashflow. So it's paying for itself and paying off the debt. And so what happens is, let's say you're working in a job you hate, but you're earning good money, right? So you use that to save your deposits and to borrow money from the bank and to buy these properties. So you buy the two properties, you build the granny flats, but then these properties and now working for you and these properties are positive cashflow so they're paying for themselves. So they're going to pay themselves off over time. If you've got a 25 year line, they're going to pay off that loan over time just because the rental income coming in is more than the expenses.
So once you own these properties, you can just let them do their thing. Girl, I just leave them to it. They're going to go ahead and do their thing. They're working for you to create financial freedom. And so rather than investing with this mindset of I've got to actively create my own financial freedom that I need to be, you know, playing the market, looking for capital growth or this sort of stuff. No. If you just spend a couple of years buying these high quality properties, getting these granny flats in as well, and you don't even have to do granny flats, you can just buy positive cash flow properties, that's fine, but yeah, if you spend time doing that, once you purchase those properties, you don't need that high paying job anymore. You've got these properties that are working for you.
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Did you know you don't have to be financially free to quit your job? By setting up a foundation for financial freedom you stop worrying about retirement and start pursuing a career you absolutely love. Transcription: Hi Guys, Ryan here from on-property dot com dot EU, and in this episode I want to talk about how you don't need to be financially free in order to quit your job and to live the life of your dreams. So how does that work? That's what I'm going to be talking about in today's episode. VII, May. My name is Ryan. As I said, I run on property dot condo. You, I help people find and invest in positive cash flow properties. And today I want to debunk the myth that you need to be financially free. In order to quit your job. You need to be financially free in order to live the life that you want to live because it's actually not true. And so this idea comes out of the video that I did with Ben Everingham on two properties to financial freedom. So if you haven't watched that video, you need to go ahead and check that out.
That's an on-property dot com. Dot Eu four dash five. Oh, eight. So go ahead and check that out if you haven't checked it out already. But there's, that's the idea that there's a way to invest where the properties themselves will work for you and go on to create the financial freedom for you. So you don't need to work hard, strive for 15, 20 years to create the financial freedom. The properties are going to do that for you. They're going to be your little minions in the background working for you. So most people, the way they invest is they're investing for capital growth or trying to grow their properties. They're selling properties, buying new ones. It's negatively geared, so they've got to keep paying for it. Kate, working to pay for it. This idea suggests that you invest in properties that pay for themselves, so positive cash flow properties.
And what we talk about in that episode is you buy two high quality houses and you build a granny flat on each of those. So you've got to high quality properties with, for incomes coming in, your positive cashflow. So it's paying for itself and paying off the debt. And so what happens is, let's say you're working in a job you hate, but you're earning good money, right? So you use that to save your deposits and to borrow money from the bank and to buy these properties. So you buy the two properties, you build the granny flats, but then these properties and now working for you and these properties are positive cashflow so they're paying for themselves. So they're going to pay themselves off over time. If you've got a 25 year line, they're going to pay off that loan over time just because the rental income coming in is more than the expenses.
So once you own these properties, you can just let them do their thing. Girl, I just leave them to it. They're going to go ahead and do their thing. They're working for you to create financial freedom. And so rather than investing with this mindset of I've got to actively create my own financial freedom that I need to be, you know, playing the market, looking for capital growth or this sort of stuff. No. If you just spend a couple of years buying these high quality properties, getting these granny flats in as well, and you don't even have to do granny flats, you can just buy positive cash flow properties, that's fine, but yeah, if you spend time doing that, once you purchase those properties, you don't need that high paying job anymore. You've got these properties that are working for...
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Is a dream home a worthy goal? Or is seeking financial freedom instead of a dream home going to make you happier? Transcription: Hey guys, Ryan here from on property and in today's episode I want to talk about this idea of your dream home and whether or not it's actually a worthy goal. Just going to go for a walk. This is my house right here. So you're going to leave my house. Isn't my dream home? No, it's not. We'll talk about that. We've also got my van here, which was my home for a couple of months, so me and the kitchen used to live in that for a couple of months. We're going to go for a walk down to the beach. Okay, so live one street back from the beach. Beach is just there. So we're going to head down to the beach and we're going to talk about this concept of a dream home. So I had an email recently from a listener have on property and if you're listening to this and you probably know who you are, but basically talking about how our two properties to financial freedom strategy, how that fits in with wanting to expand your principal place of residence and expand your home.
Talking about this person talks about how they had invested in a unit in a capital city that they live in as well as in an investment property with the goal in the future of eventually selling those two properties so they can upscale into a larger dream home in Melbourne to get a four bedroom house that was going to be, you know, one and a half million or around that sort of ballpark figure. So as you guys know, especially if you live in capital cities, super expensive to buy houses in capital cities and so it can be really difficult for people to think, okay, I want to get financial freedom, but hey, I also want my dream home. So how do I balance that out? Now? I used to live in Sydney. I used to live in a beach side suburb called crunella. So if anyone's from Sydney, you know what I'm talking about.
I'm a shy boy. Born and bred in the Shire Granola, super expensive. All units now and basically if you want to buy a house in Granola, you're talking to three mil sort of thing. In a previous life that would've been my dream home, a house in Granola near the beach, near the good coffee shops, all that sort of stuff. That would've been my dream home. But now not so much. Okay. So, so life has changed for me a lot significantly, especially in the last two years. So what's happened in the last two years is that I achieved financial freedom through my businesses where I call it pseudo financial freedom because I don't need to work much, but I do need to work a bit and over time those businesses won't always pay me. So it's kind of like short term financial freedom sort of thing if I don't keep up doing a bit of work.
So I'm not completely financially free, but it got to the point where I don't really need to work in order to make money just a little bit. Also location independent because my work is online obviously, so basically we can live anywhere. And so what happened during that period was now I no need to work. That really changed my life a lot. So it really made me open my eyes to how the goals that I had set for myself in terms of business, in terms of financial freedom, they were pushing me for though driving though my focus and I was pushing through life in order to achieve these goals. But when I achieved them, they didn't make me happy. And what also happened was that when we achieve them, we then realized we weren't happy. Okay. You just get so distracted by life. So distracted by work.
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We've tried and failed at a lot of budgets over the years. Here are some of our failures as well as what we are learning about budgeting at the moment. Transcription: Hey guys, it's Ryan here from on property. We are just driving home from, we've been at a local farm where they do coffee and stuff like that. And so we're driving home at the moment, kills driving. Is this the first time in over 500 episodes that you've actually been on? So this is my wife Kelly and these are my kids. We go Sasha, Branson and we got lots. And so I thought I'll just take this time as we're driving through the hinterland, pretty gorgeous spot up here to talk about some of our budgeting fails that we've had over the years. There have been so, so many things that we've tried that just basically haven't worked and now I'm like a new budgeting plan and whether or not that'll work. It's definitely not waking for definitely over budget this way, but by, by about 30 percent. Um, so let's go back to when we first got married. I'm trying to remember what our budgeting blank, $70.
Everything except for like rent and electricity. Anything else you wanted to do with $70? And then for awhile we had, and we would put this cash in envelopes and we'd be like, this is our man. Okay. So I think that first we tried the envelope one where people told me you get old cash out and then you can only use what's in that envelope with that, so you'd have like $40 for petrol and that's it. And so that didn't work because we couldn't drive much that week and then we'd want to buy coffee or something. And so we'd always be like taking from one envelope to pay for something else and then we'd be, then we wouldn't take enough cash and we'd have no money to buy that.
Or you would, um, be trying to buy something online, like all you've got is cash in envelopes and so that really wouldn't work. So cash in envelopes well from side of the road, not today. So, um, cash in envelopes, that didn't work. I wouldn't work going forward anyway. Now because everything is completely outdated now. We do online shopping for woolworths, we buy clothes for the kids online because there's no shops around up here to actually buy good stuff. Um, so that wouldn't work. So then we went to the amount of money per day and this was back in the days where what I was working maybe four days a week at mobile. I think I had stepped it up to four, but I'll still any hobby and you weren't working because we had just had sasha, we didn't have much money at all. We were so poor and we, the envelope thing had filed so we decided to do a daily daily budget. So it's like well you get $70 a day or $69 a day, why do we even choose that?
What does it mean? And then that was subtle hot as well because then you kind of like buy bulk of anything. Like if something's on special it doesn't matter. Like you can't buy it, you just have what you have and you just buy like one bag of rice and like a couple of things that went with it and you can't buy for tomorrow. So we are always at the shop and then we had young kids, I was a little bit by then so it just wasn't practical even like filling out petro and you couldn't fill the tank up because it would be. We always did and so that didn't work for us. And then what else did we do?
Are we, what we were budgeting until we could afford to not or we just had a budget budget, budget, budget, but then we would sit down and write all of our expenses and everything, but then we just, we didn't, we didn't have enough money to even do what we wanted...
https://www.youtube.com/watch?v=Pj8gLiDEz8Y
For so many people financial freedom seems like an elusive goal that is extremely difficult to achieve. With the 2 properties to financial freedom strategy that elusive goal becomes an almost inevitable reality. All that changes will be how long it will take you to experience it. Download the 2 Properties To Financial Freedom Document Book Your Free Strategy Session Transcription: For so many people, financial freedom is this elusive goal that just seems really far in the distance and really difficult to achieve even property investors who purchased one, two, three properties often struggle to actually achieve financial freedom and have the freedom to make the choices that they want and to have the lifestyle that they want. So today, today I am super excited to have Ben Everingham with me. Hey Ben. Hey Ron. I'm excited man. This is going to be huge today. This is probably one of the biggest things that we've ever talked about, so really excited to be sharing this and this is the two properties to financial freedom strategy, something that's been in the works for years but has kind of just come about and it's a way of investing that we believe is simple enough for the everyday investor to do. We believe that it can make it not easy, but achievable for you to get financial freedom and also it just opens up so many options for you as well in your life. You don't need to wait until you're 65 in order to start living the life of your dreams that you can start doing it in a lot sooner and a couple of years sort of thing. So what is it about this strategy that gets you so excited, Ben? Because obviously I'm excited right now. I get excited when you get excited for it. So this is just like me vibing off you, but when you run me the other day after you sort of had this concept, I think it was while you're having a surf, wasn't it like you like, yeah, something awesome is going to come to me today and he gave me a call that other like what I love about this strategy is you're right. It's not simple because achieving financial freedom takes work and let's all just get real about that for a sec. But it is simple in its application. Most people earning a regular household income in Australia can definitely do this and you don't have to be a rocket scientist to figure it out. And what I love about these compared to all of the other stuff I've read and listened to over the last eight years, is the fact that everyone ends up there if they just follow the strategy, right? Like worst case scenario, you're going to end up financially free as long as all the crazy stuff of life doesn't get to you when you follow this strategy, which most people should be able to do. So I get so excited about that man. Like I love the fact that it helps people like me and you actually get to where we want to be in a reasonable amount of time without taking on too much risk or too much debt. And it makes the journey a pleasant one because you're not forking out hundreds and hundreds of bucks a week. He negatively gearing just the hope in the future that, you know, you end up getting there when you want to be there. Yeah. And you don't need fancy strategies or tactics like options or even like things as difficult as subdivision or you know, there's so many different strategies out there that people need to play all these games and get certain amount of capital growth and then sell a property and then buy another property and just juggle so many balls. So I liked that. This is very simple. So I'm gonna. I'm gonna. Lay out the big. Then I'm going to hand it over to Ben and we're going to start to get into the nitty gritty. So the two properties to financial freedom idea, the strategy, what is it? Here's the idea, right? You buy two high quality properties. We're recommending houses. So you buy two high quality properties in Metro markets on those properties. You build a granny flat on each of those properties.
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A quick challenge today to look at the questions you are asking yourself and to expand your life and financial situation by asking yourself better questions. Transcription: Hey guys, Ryan here from on-property, just wanting to do a quick video. Say I'm on my way to get pizza because my son nearly broke his toe basically. So he's home from school. He really wants pizza for lunch. So who am I to say no to that, but I wanted to stop and make just a really quick video to encourage you guys about the questions that you're asking yourself. So I get a lot of emails, a lot of questions from you guys about your situation or what do you think about this or what about this? And I love helping people out when I can and something that has really driven me through my life. It's just this constant seeking of better questions. Us and I think I got this originally from Robert Kiyosaki who's the author of Rich Dad, poor dad and he talked about how language is extremely important and the language of the rich is different from the language of the poor. And the biggest example that he gave is the difference between the word or and the difference between the word. And so poor people will use the word or rich people who use the word and when they ask themselves questions. So for example, I recently had an email asking about should I invest for financial freedom or should I invest to purchase my dream home?
Let's rephrase that question and change the or to an end and we'll just add a house or the front. How do I invest for financial freedom and my dream home?
Just sit with that for a minute. First question is, should I invest for financial freedom? All my dream home? What is your brand going to come up with? In that situation, you can only have one or the other. Which one will you have? Whereas if you change that or to an end and you say, how can I invest for financial freedom and my dream home? You're not magically going to get both, but you're putting your brain in a position to think of solutions so you can get both. Our brains are extremely smart. They're great problem solvers. We can come up with so many things, but they're also extremely, extremely dumb. If you set yourself to focus on something, your brain will just naturally think about that thing and you will spend days thinking about it, weeks thinking about it. When you're asleep, your subconscious will be pondering over it, but if you focus it on the wrong thing, then it's going to be thinking of all these ideas, thinking of all these solutions, and that's not going to get you to where you want.
So unless you actively decide to direct the focus of your brain towards a better questions, they're going to give you better outcomes. You're not going to get the creative ideas. Your subconscious isn't going to think about that stuff. You're not going to dwell on it. It takes time to come up with solutions and time to come up with ideas, and so you really need to set your focus on the right questions. And so in this episode, I want to encourage you today to think about the questions that you're asking yourself in life, both financially and every other aspect of your life where you're using the word all or were you just being really narrow minded in terms of what you can achieve. Think outside the box. Ask yourself bigger questions. How can I make $100,000 extra this year? How can I make an extra $1,000 this month?
How can I invest for financial freedom and my dream home? Start expanding the questions that you're asking yourself.
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In this episode I sit down with Ben Everingham and we explore the Financial Freedom Foundation strategy (to be renamed) and what our thoughts are about it. This is really raw and fresh for us so it's a very candid look into our thought process. Book a free strategy session to secure your financial freedom foundation For those of you wanting the outline of this strategy without watching the video here are the basics:
You purchase 2 properties valued at approximately $400,000 that rent for approximately $400-$420/week You build 1 granny flat on EACH of those properties. This will cost around $110,000 and should rent for around $280-$300/week Your properties are now cash flow neutral or positive You have a Principal and Interest loan over approximately 25 years The properties will now go on to pay themselves off. In 25 years when they are paid off you use the cash flow from the rental income to become financially free. By buying these 2 properties you have a financial freedom foundation. You know (bearing unfortunate circumstances) that you will be financially free in the future. You can now focus on living a great life and working in a career you absolutely love. You can also get aggressive and lower the time period from 25 years using multiple different methods. Invest in more properties to pay down debt faster, start a business, get a pay rise etc.
Transcription: Hi Guys, Ryan here from on-property Dotcom Donohue and today I have with me none other than Ben Everingham. We are in the same room at the moment, which rarely happens. Usually we're just talking over the phone, but we wanted to meet up to talk about this new financial freedom foundation or two property strategy or we haven't quite worked out the name yet, but basically this is all fairly new for us, so because I just wanted to capture the conversation, we've had a quick convo about it but not a huge one and so we thought do something more casual today, kind of capture the essence of this idea because we really do think that this is quite revolutionary and could help a lot of people.
Yeah. So Ryan, run me the other day, be safe for some of you that have been following us for a while. We've got the four properties strategy that we've been talking about. Um, but I'm on my way home and Ryan's like, I've got something amazing to talk to you about.
Yeah, I like texting him. I was like, had this feeling in the morning. I was like, I'm going to have a good idea today. Something bad's gonna happen. So I'm like, I'm going to go for a surf because that helps my creativity in the surf. Like the idea hits me. I like run home from the setup. I like text Ben Unlike call me. I'm like, if you've got something on Kansas, can you call? And then like three hours later he texts me. He's like, dude, just go. You message. Unfortunately, or fortunately I have clients that I have to talk to as well, but Brian is building up,
um, that. So Ryan's texts me and then we've talked in the up on the way home and I've literally got goosebumps about this concept because it means that every single person that we get to work with that follows the strategy will end up financially independent. Cashflow was, it just will take a little bit longer for some people and a little bit shorter for others. But we've been thinking about these figures in, in years now, me personally, and I've always been looking for a way that the average person like me can achieve financial independence in a relatively reasonable period of time without ...
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When investing in property it's important to estimate the annual cash flow. Here's exactly how to calculate the cash flow of an investment property. Get Access to the Property Tools Cash Flow Calculator Transcription: Okay, when it comes to purchasing investment property, it's really important that you understand the potential cash flow of a property before you go ahead and purchase it. You want to understand whether or not that property is going to be positive cashflow and put money into your pocket or if it's going to be negatively geared and you have to pay money each month just to keep it and how much money you have to pay because you don't want to invest in a property thinking it's going to be positively geared and then find out it's negatively geared to a large degree and you're struggling to keep your head above water because you have to keep to keep this property and not go under. So in this episode I'm going to show you how to calculate the cash flow of an investment property. So we're going to go through it the long way that I'm going to go and show you a tool that I created myself that allows you to do it way shorter.
So here we have a property in Birmingham Gardens, New South Wales, which as we can see down at the map is just kind of out near Jasmine in Newcastle. So West Newcastle. This is currently being rented as a share House for 770 per week. That's if all the rooms are full. Currently there's only four out of five tenanted. So potential rental income, seven 70 per week asking price is 560,000. So to start with let's just go over here to property tools.com dot a u, which is the tool I created myself that just does these calculations for you. So I'm just going to quickly punch it in. We'll see if it's likely to be positive cash flow. Then we'll go through all the individual steps if you just want to be able to do it yourself and you don't want to pay for this service. Super affordable but some people might not want to.
Alright, so purchase price. What was our purchase price? Five hundred and $60,000. And rental income was seven 70. Okay. So it's looking like this will be positive cash flow of about $171 per week or about $9,000 per year. But how do we get that figure? How do we work out that cashflow ourselves? So first thing we need to do is look at the rental income which has seven 70 per week. So I'm going to times that by 52 to get that annual rental income. I always like to calculate cash flow annually and then work back to the weekly from that I just find that's the easiest to do. Next thing you need to do is work out your loan amount. So the purchase price of this property is $560,000. What's happening here? Five hundred and $60,000. And then depending on what deposit you make. So maybe a 20 percent deposit that are working out how much of our loan will have.
So let's just do the full amount times zero point eight. So that'll give us a loan amount of $448,000. The reason we need this line amount, because that will work out how much interest we need to pay over the course of a year. So let's assume that our interest rate is five percent. To do the interest calculation, we can just do the loan amount times by five percent. That's going to give us our annual interest of 22,400. Now if you want to pay principal and interest on this, then you can use a mortgage calculator. So here's one from ing which I really love. And so if we go ahead and punch in 448,000, 25 year loan at five percent, then we can say that our monthly repayments are $2,
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Units and apartments are less likely to be positive cash flow when compared to houses. This is because they have a body corporate or strata fee that strips a good chunk of your cash flow. Transcription: Did you know that units are actually less likely to generate you a positive cashflow than houses? That's something that a lot of people don't think about when they're looking for positive cashflow property. Hey, I'm Ryan from on-property dot com dot EU. I help people find and invest in positive cash flow properties and today we are going to be looking at this exact topic, why it's harder for units to generate a positive cash flow than it is for houses and it's really, really simple. And so if you're out there searching for positive cash flow properties, then you might want to be looking at houses instead of units. Units can still generate a positive cash flow property. Don't get me wrong, they still can, but there's just an extra element in there that makes it harder. So let's jump into some examples that I have here. So I found this property here, one 95 ps street in Boulder, who I didn't even know, where boulder, who is the example like where it is, doesn't really matter for this example.
Okay? It's near Calgary or in Calgary. Um, okay. So we've got this property that's selling for $159,000 and it is renting for $250 per week. So we're going to jump over to property tools.com dot a u, which is a calculator that I created myself for analyzing the cashflow of properties. And so let's have a look at this $159,000. And this one is renting for 2:50 per week. So 2:50 per week. We can see that we've got an eight point one, eight percent rental yield and a weekly cashflow estimate of about $17 50 per week for this property. All right, so this is a house. Okay, I've got another example here. That's a unit that has a very similar rental yield. It's actually more expensive and as we talked about in episode four, 99 on how rental yield isn't the be all and end all of finding positive cash flow properties.
The more expensive a property becomes and the more rental income you're generating, the less rental yield you need to generate a positive cash flow. So the fact that this property is more expensive and it's generating three, 10 per week in rental income rather than to 50 should main, it's more likely to generate a positive cash flow with a smaller rental yield. So let's go ahead and check this one in $200,000 renting for three, 10 per week. We can say the rental yields eight point, oh, six percent. So slightly lower than the last one, but not a big deal. And we can see the weekly cashflow is estimated at about $39 per week. And here's the ticker. Here's, here's the reason why units can be harder to generate a positive cash flow. If we scroll down here and we zoom in, we can see here body corporate levies of 2000, $131 per annum.
Now, if you don't know what body corporate levies are, they're often called body corporate fees, body corporate levies, or strata fees. Now this is a fee that you have to pay when you own a unit. When you own townhouses, when your own villas, when there's common areas that you share with other people. So you pay body corporate fees or strata fees, and so this pays for the maintenance and the repairs of the common areas. So the driveways that you all share, the gardens that you all share, the elevator that you share, if you live in a large unit block, maybe even pools and gyms, all of this sort of stuff. So body corporate levies go towards that.
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In this landmark episode I want to take some time to look back over the last 8 years of the On Property blog and talk about how it all started as well as the plans for the future. Pages and Videos I Shared CashFlow Investor Initial Sales Page
First Ever CashFlow Investor Blog Post
First OnProperty Video
On Property Plus Sales Video
https://www.youtube.com/watch?v=U_B2DTIPZ_Q&t=84s
Interview With Ben Everingham
https://www.youtube.com/watch?v=Nd6OrpM0y_k
Exporing Financial Freedom Video
https://www.youtube.com/watch?v=U-nNqja8gRU&t=2s Transcription: When trying to find a positive cashflow property, a lot of people look at rental yield as the beal and endo for whether or not a property is going to be positive cashflow. If it's got a certain rental yield, they say yes, it will be. If it's below a certain rental yield, they say no. A white be. In this episode I'm going to talk about why rental yield doesn't actually matter when it comes to finding positive cash flow properties, and in fact it does matter a little bit. It can be a good tool to quickly knock out properties that just will never meet the criteria or even come close, but as we'll look through a bunch of examples today, you'll start to see that properties, even with the same rental yield, one can be positive cashflow and one can't be, and properties with Laura rental yields can be positive cashflow.
Whereas properties with higher rental yield may not be so. Rental yield can be a good guideline, but it's not the be all and end all. So that's what we're going to be looking at in today's episode. Now I first came across the idea of rental yields and how important they are for finding positive cashflow property. When I read Steve McKnight's book zero to 130 properties in three point five years now, while that strategy probably won't work anymore, buying 130 properties in three and a half years on a single income. That is still a really great book and there's a lot of good concepts in there. So if you want to check out that book, go to [inaudible] Dot com.au forward slash 1:30. So a lot of good stuff in there about saving a lot of good stuff in there about the basic fundamentals of cashflow and stuff like that.
So Steve McKnight has this thing in this book called the 11 second rule. So he coined it as 11 second role. I don't know why it takes 11 seconds instead of 10, but so be it. But basically the idea of the 11 second rule is that you take the purchase price of a property. So for example, if we have a property at 300,000, you then divide it by a thousand or you chop off three zeroes, so that becomes $300 and you then double that number. So that's 300 become $600 and that's the weekly rent that you're looking for. So a $300,000 property, you're looking for a rent of $600 per week. Or if you have a property that's rented for $150 per week, how much do you want to pay for it? We do the same process in reverse you times that figure or you divide that figure by two times by a thousand and so you get $75,000 and basically this gives you a 10 point four percent rental yield, which kind of it, it's not the gold standard of rental yields in positive cashflow property.
But when this book was written, it kind of alluded to being that. And now when this book was written, interest rates were higher. I think there are around seven or eight percent or something like that. Interest rates at the moment are quite low, four to five percent sort of thing, so you do need to take all of these factors into account,
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When it comes to finding positive cash flow property, rental yield doesn't actually matter and isn't a true indicator of cash flow. Transcription: When trying to find a positive cashflow property, a lot of people look at rental yield as the beal and endo for whether or not a property is going to be positive cashflow. If it's got a certain rental yield, they say yes, it will be. If it's below a certain rental yield, they say no. A white be. In this episode I'm going to talk about why rental yield doesn't actually matter when it comes to finding positive cash flow properties, and in fact it does matter a little bit. It can be a good tool to quickly knock out properties that just will never meet the criteria or even come close, but as we'll look through a bunch of examples today, you'll start to see that properties, even with the same rental yield, one can be positive cashflow and one can't be, and properties with Laura rental yields can be positive cashflow.
Whereas properties with higher rental yield may not be so. Rental yield can be a good guideline, but it's not the be all and end all. So that's what we're going to be looking at in today's episode. Now I first came across the idea of rental yields and how important they are for finding positive cashflow property. When I read Steve McKnight's book zero to 130 properties in three point five years now, while that strategy probably won't work anymore, buying 130 properties in three and a half years on a single income. That is still a really great book and there's a lot of good concepts in there. So if you want to check out that book, go to [inaudible] Dot com.au forward slash 1:30. So a lot of good stuff in there about saving a lot of good stuff in there about the basic fundamentals of cashflow and stuff like that.
So Steve McKnight has this thing in this book called the 11 second rule. So he coined it as 11 second role. I don't know why it takes 11 seconds instead of 10, but so be it. But basically the idea of the 11 second rule is that you take the purchase price of a property. So for example, if we have a property at 300,000, you then divide it by a thousand or you chop off three zeroes, so that becomes $300 and you then double that number. So that's 300 become $600 and that's the weekly rent that you're looking for. So a $300,000 property, you're looking for a rent of $600 per week. Or if you have a property that's rented for $150 per week, how much do you want to pay for it? We do the same process in reverse you times that figure or you divide that figure by two times by a thousand and so you get $75,000 and basically this gives you a 10 point four percent rental yield, which kind of it, it's not the gold standard of rental yields in positive cashflow property.
But when this book was written, it kind of alluded to being that. And now when this book was written, interest rates were higher. I think there are around seven or eight percent or something like that. Interest rates at the moment are quite low, four to five percent sort of thing, so you do need to take all of these factors into account, but anyway, this was my first experience to rental yield and how important it was and it's a, it's a good idea, but it just doesn't play out perfectly as we to look at positive cash flow properties. So let's use a few examples of properties and we'll see how rental yield affects the cashflow. So let's start with this one. I've got 36 Gros ventre street in Narrandera New South Wales.
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A bit of a different episode where I share a process of discovery I am going through about the properties of money and how we can think about wealth and money differently. Transcription: Hey everyone, a little bit of a different episode today we're going to be talking about rethinking money and what I mean by that. There's these times that I have in my life where I can feel this monumental shift happening in my mind and in the way that I think about things. Sometimes they hit me like a fricking truck and my mind just changes instantly like that. I see the whole world in a new different way. Other times it's a more slow progression to understand something that happens over the course of a period of months or even years until I get to a point where I see the world in a different way. I don't usually share those things until they're fully formed and I can express them. I'm making an exception today because I want to talk about this idea of rethinking money and I want to start to express this and kind of take you guys along the journey with me so we can start to flesh this out.
So this is not going to be a fully formed thought. This may go all over the place. So you've been prewarned bit of a different episode here, not specifically related to property, but specifically related to how we think about money and how that might affect the way that we invest, the way that we save, etc. If you don't know me, welcome. I'm ryan. I run on property.com dot a u. I help people find it an invest in positive cash flow properties and teach people about general property investing stuff. Help them build up their skills. Money management is something that I've been working on lately, but this idea has been brewing on me that money is not what we think it is. So bear with me for this one. When we grow up or even throughout life, most of us just think of money as money is money, just like it just is in our life.
Let me say, have I got some money here? Alright. So right now if you're watching the video, I'm holding up a $10 note. If you're listening to the podcast, you can't see it, but it's there. All right. I'm holding up an australian tyndall and note it's one of those new ones with the seethrough thing. They're really cool, but you grow up as kids and you realize that, okay, you need money to buy things. If I want to go to the corner store and buy an ice cream, then I'm going to need some money to do it, and you grow up thinking $10 is $10. That's just what it is. It's money. It helps you buy things. That's what it is. You can hand it over to the man or the corner store. You can get your Ice cream and some change in return and we go through life just with that same idea that money has just always existed.
It's just always there. We use it everyday in our life, but we don't really think about what it means oR the properties of that money. So we think short. I'd like to have more money, but we don't think about what money exactly is and how that affects the way we use money. So If I've confused you, then welcome to my world where I'm very confused as well, but I'm working through this idea of what money is. So first, let's just admit that money is basically a construct that has been created by society in order so that we can do business with each other so it helps the world go round, that we can exchange value with each other and in the past or even today, money has been issued by the government of whichever country you're a part of. So if we really break it down, right?
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With my goal to get better at budgeting I am reaching out to listeners for their tips. Here are some great tips from Nic on how he revolutionised his budgeting and savings. Transcription: Hey guys, Ryan here from onproperty.com.au. I help people find positive cashflow property and in this episode we are doing some listener budgeting tips, so this is a roundup of some of the tips that I've received via email from listeners. It's going to be kind of short round up because I've got one email, but it's quite a long email that we're going to go through and pull some tips from it, so hopefully this will help you guys as you may know if you've been following. I am working on budgeting at the moment. It's something that I haven't worked on for a number of years that I need to get better at because I'm trying to save and so I've done a bunch of different episodes out there, one on my favorite favorite budgeting APP, which you should check out if you haven't already.
And then there's also this one budgeting tips from two guys who hate budgeting. If you want to check that one out. I really liked that one. That one was with Ben Everingham. That was a lot of fun. So you've got to own property. Don't conduct a u four dash four, nine six if you want to check out that one, but this budgeting tip today comes from a listener of the podcast and I'll just bring it up to right now. We're going to read through it together and then I'm going to talk about where I'm at and some of the things that I'm thinking about and what I learned from this email as well. So listener budgeting tips ran up, number one. This is an email from nick, so nick, thank you for taking the time to email me. Really loved reading your email and now I'm sharing it with everyone else, so it says, get a Ryan.
Love your podcast man. Been listing for over a year now. The candid conversations about living within your means and seeing or hearing in my case, the growth that you've gone through makes you feel more approachable than any other money finance property podcast. Keep it up, man. As this is one of my favorite listens. Well, let me just stop there and say thanks nick for those super kind words. That's exactly what I'm going for. I listened to a lot of podcasts, watched a lot of youtube videos and stuff like that. I don't like it when the fake and they're hoity toity and all that sort of stuff. Trying to be super professional. I just want to be like we're sitting having a coffee together at a hipster coffee shop down the road, and so that's kind of the vibe that I'm going for, so I really appreciate that that's coming through. And then you said Nice things like that because I want to feel like we have a relationship and that we can just talk normally talk candidly and so yeah, really excited to hear that. So Nick's saying money management is something that I've recently started to take a little more seriously. I was forced to review my finances when I overstretch during a renovation and the bank wasn't forthcoming with the construction loan. My money management is now a combination of the property cash money smart system, which is attached. So we'll talk about that in a sec. Guys, Scott Paper, barefoot investor stuff, and my own twist. Now I do have the barefoot investor book,
the Barefoot Investor Book right here. Now this is the second email where I've actually been recommended to read this, so I have started reading this and you know I'm about. I haven't even folded it, but basically are right at the very start.
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What do you do if you hate budgeting and aren't good at it? Here's how 2 guys who hate budgeting approach this problem.
Both me and Ben hate budgeting, and aren't really good at it, yet we have achieved financial freedom. If you're struggling with budgeting and the standard tips haven't helped you then this episode is for you. Book a free strategy session with Pumped on Property For those of you who want the jist of it without watching the video or listening to the podcast here's the basic outline.
Pay Yourself First - Put money aside as soon as you get paid and strive to live off the rest Don't Acquire Debt - That just makes you go backwards (debt for houses/investments can be different) Find A Budgeting Strategy That Works for You - Everyone is different, what works for me might not work for you Earn More Money - The easiest way to solve your money problems (in my opinion)
Transcription: Budgeting can be really hot and at the moment I'm budgeting to try and save for a house among other things and so I decided to get some help from Ben Everingham from pumped on property, but it turns out that he doesn't like budgeting either and is that necessarily the best person at budgeting? So we're going to be calling this episode budgeting tips from two guys who hate budgeting because even though we haven't been the best budget is in our life, we have both achieved financial freedom. I'm in different ways and we've done fairly well and we feel fairly confident in the way we do it. So this might be great tips if you're like, I just need someone to teach me how to be extremely frugal and how to do that sort of stuff. But if you're like struggling with budgeting and everything that the experts say doesn't work for you, then we are your point of last resort. We are the place. You come here. Everything else doesn't work. Just disclaimer, obviously this isn't financial advice is for general educational purposes only. So yeah, so I'm trying to budget Ben. I'm trying to save money for house among other things and so basically I've got the idea of pay yourself first, which I think is really important and I've kind of got that down pat. Everything else are really struggling with. So maybe we'll start with pay yourself first and then we can look at the other things.
Um, the thing about pay yourself first from my perspective, cause like my wife just doesn't even get budgeting, like she's just got like made to make money or her making money and that's like, you know, don't even bring the word into our house. I like as soon as she does it, she'll like self sabotage and almost like go the other way, which is why I obviously look after the finances and not my wife in the productive to budget. But I think, you know, like in terms of this concept of paying yourself first. I think I heard it from Tim Ferriss ages ago, like eight years ago. And it resonated with me. It's much easier to go when I was ending it at thousand dollars a week. Um, when I finished university I just had this thing and I was like, I'll say 400 bucks a week, which 40 percent of your income was a pretty significant amount now that I look back, but I also made the decision that once I've finished uni, I'd start living out of home.
I'd moved back home for that first year and try and save a deposit to sort of speed the process up. So 40 percent was achievable then. Um. Is your expenses increase? Obviously not, but it has worked for me since then, every single week, regardless of how much I'm earning,
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I want to share with you my favourite budgeting app that I have found and the one I will be using to improve my budgeting and money management moving forward.
Transcription: I mentioned in the previous video that's something I want to get better at is money management and budgeting and something that I've never really focused on in the past. I've always focused on how to make more money and trying to make more money and I've never really focused on getting good at budgeting and getting good at money management. I've had times in my life where I've been really diligent at it and worked really well, but eventually it slips by the wayside. I stopped focusing on it and it just falls apart basically. So in this episode I want to share with you guys my favorite budgeting app that I have found and one that I'll be using moving forward. Hey, I'm Ryan from onproperty.com.au and I firmly believe that if you want to become a successful property investor, there's lots of different skills that you need to learn.
One of those skills as money management and budgeting, but there's also things like researching it, suburbs, finding positive cash flow properties, inspecting properties, talking to real estate agents, understanding, financing, negotiating. There's this whole myriad of skills that you need to build up in order to become a successful property investor, and so this year I'll be focusing on one by one working on those skills with you, so wherever you have gaps in your knowledge or gaps in your skill base, you can work on that, that which will move you forward towards your goal of financial freedom. So one of the gaps that I have, which is the perfect place to start really is this idea of money management saving and budgeting. I've been really good at learning how to make money, not so good at learning how to budget and save money. So we're going to dive into it today and look at my favorite budgeting app, why I like it, why I recommend it, and you can save.
It's going to work for you, for everyone. Budget's going to be different. Different things work for different people. So it's up to you if you think this will work for you. And so let's bring up my phone and the APP is called spending tracker. So if you go into the APP store and just search spending tracker, it will come up. It's a free app to download a. There is a paid upgrade to it as well. Totally worth it. I think if it's for you, but try the free version and then upgrade if you feel it's worth it. I'm not sure if it's on android or not. I'm sorry for those android people out there, but it's definitely on iphone. So let's go ahead and open the APP and I will show you through it right now. What we're going to start with is looking at the settings and the reason that I love this app, if we go to the time period here, you can change it between weekly, monthly and yearly.
A lot of the budgeting apps out there set you to only weakly or most of them actually set you to only monthly. Now the way me and my wife were going to be doing it, our finances is that we've looked at our annual income or our projected annual income and we've looked at some of the big expenses that are going to be happening this year. So my kids go to Montessori school, so I got to pay for school fees, we've got rent that we needed to pay for phones, electricity, Internet, those sorts of expenses that we really get rid of in our lives. We've kind of taken them out of our annual expenses so we won't be tracking them in here because we don't feel like there's much po...
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One of the major skills you need to become a successful investor and this is a skill that I really need to work on.
Transcription: One of the major skills that you need to become a successful investor and to build wealth is money management and this is a skill that I am probably lacking in and that I need to focus on and then I'll be focusing on in the future. Hey guys, I'm Ryan from on-property dot Com dot U. I hope people find positive cash flow properties and I've been working on this idea that in order to become a successful property investor, you need to build up the skills of a property investor and there's so many little skills that go into becoming a successful property investor. Money Management's one of the researching an area, choosing markets, talking to real estate agents, inspecting properties. I'm working with solicitors. There's so many different things that go into play when you're trying to become a successful property investor and I find that so many people don't build up these skills, but I just kind of focused on the bigger picture.
They focus on big strategy and things like that and so they're constantly filming overwhelmed and never feeling empowered to go out there and invest. So my videos in the coming days and weeks and months, are we all about focusing on the skills that you need to become a successful investor and one of those skills is money management, so that's being able to spend less than you earn, being able to save the amount of money that you want to save and this is a skill that I personally need to work on myself so I'm not going to go out there and pretend that I'm, you know, really down with this that this is one of my best skills because definitely it's not. I'll have to go out there and learn a lot. I'll have to travel a lot of things. I'll have to get some experts on like Ben from pumped on property to teach me the ways and how to do it.
I know a lot about money management, but the problem for me has always been just sticking with it. I'm a big ideas guy. I love big ideas. I can think really innovative about problems and solutions from angles that people can't really see. So I'm really good at that sort of stuff. Like the big picture, big ideas sort of thing, but when it comes to the day in, day out, staying focused on the same task, I get very distracted by the next new big idea that's out there. So when it comes to money management, it is really a daily thing that you need to focus on. So my biggest flaw is that I just can't stay focused on it but like a big plans this year, investments that I would like to make, things that I would like to achieve and so this needs to be a priority for me and so the biggest thing that I'm going to change in terms of our manage management this time around versus my manage management in the past is that I'm going to find a way that I can enjoy it.
Find a way that I can happily track it each day, each week and stay focused on it. Because I know that if I stay focused on my money management, then I can be successful at it. I can keep my expenses down. I can focus on saving. I can focus on making more money, making investments and things like that, but I just have to be focused on it and so that's a big thing that I need to work out how to do and practice and so that's something that I'll be looking at in the near future is how can we manage our money better? What is going to work for me, what's going to work for you? Because I imagine there's a lot of people in a similar situation to me wh...
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After you've set your strategy it's important to start researching the different major property markets. Here is a great tool to get you started.
After you've decided on your property investment strategy, one of the things that you're going to want to do to increase your chances of buying a good investment property is to actually start to research different markets around the country to invest in a market that is on the rise versus a market that's on the decline. Because obviously it's a lot harder to find a property that's going to make you good money. If you're buying in a declining market.
The saying goes, the rising tide lifts all boats, so the market's going up and generally old properties in the area are more likely to go up. It's the same if the tide is going down or the market's going down, chances are the property you buy it, no matter how great is likely to go down with that market as well. So when we're investing in property, one of the things we want to do is choose markets that are on the rise.
And so in this video we're going to be looking at how to start researching different markets around Australia. And the point that I recommend to start, and I want to thank Ben Everingham from pumped on property, who you guys should know and love if you've been following this channel for a while, is the Herron Todd White month in review report. So what we're going to do is jump into Google because that's what we do. And we're going to type in Heron Todd White month in review report probably doesn't matter how you spell it.
Google's pretty smart. And here we go. We've got the HTW website, month in review. And so that will bring up the different month in review articles. Those actually one that was a bit better. This property report, Herron Todd White. So let's go ahead and select that one. We can see that it is March, 2018.
I am recording this in the middle of March 2018. So that's perfect. I want to go ahead and check the residential report. My voice sounds a bit different I do have a head cold. I Apologize I had pneumonia. Got over that. But I think that antibiotics have just made my immune system shot. So now going straight into a head cold as well, which sucks, but oh well.
So we are looking at the residential report. If you're listening to this in podcast format, I will talk through this with you guys but pretty simple. Go to Google and that will bring up this report. OK, so there's two pages in this report. We've got the orange one which talks about the housing market and we've got the blue one which talks about the unit market. Now it's important to know and we will talk about it, that houses in an area perform very differently to units in an area.
So one thing I'm going to draw out right now is Brisbane. So if we look at houses in the Brisbane market, we can see that on the property clock there, put it in the rising market. So they're expecting Brisbon to rise. But if we go down to the units clock in a declining market, we've got Brisbane. So this has to do with supply and demand. So because there's been an oversupply of units in the Brisbane market, that might be more development as well.
They expect that units in Brisbane are in declining market even though houses are increasing in value. So this is why it's really important if you're choosing to invest in units or you're choosing to invest in houses that you look specifically at the market in relation to units or houses because it can be very different. But yeah,
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There may be a better way to learn about property investing that will make you less overwhelmed and a more successful property investor. Worth exploring? I think so!
Today we're going to talk about a different way to learn about property investing because chances are the way that you're currently learning about property investing probably isn't the most effective way that you can do it. Hey guys, I'm Ryan from OnProperty. I help people find positive cash flow property, but now so trying to help people build the skills that they need to become a successful property investor. And so just having some coffee here. If I sound a bit different. I have had pneumonia, which is terrible. Pneumonia sucks in bed for three weeks, coughing up blood, all that good stuff. So if I sound a bit different, that is why, and I apologize. So to talk about a different way of investing in property, we're learning about investing in property. Let's first look at the way that most people go about learning how to invest in property.
The way that I went about learning out how to invest in property and that is through. We start with property magazines, things like money magazine, your investment, Property magazine, Api magazine, that sort of stuff. Or we go on websites. We might go on, on property, we might get onto more popular websites. So if I just flip the camera around here and here's your investment property mag website as well. We've got Michael Yardney's property update website as well. Two great websites about investing in property, but what we'll find is that a lot of the content on these websites is kind of about the general market at the moment, so we can see on Michael Yardney's site proposed reforms to negative gearing. So you can learn about that. Good news for the Melbourne property market, weekly economic update, stuff like that. If we look at property investment mag, we can see housing supply, well short of demand in Tasmania.
So that's looking at kind of the local region, talking about planning growth in Australia's largest cities. Properly prices rose in December, so it's all kind of localized sort of stuff. So it's all news items and what's happening now. And so we spent a lot of time reading about what's happening now and what the market's like now, property hotspots and all of that sort of stuff. And so what I want to propose today is that you go about learning how to invest in property in a different way. When it comes to successfully investing in property. There's a lot of different elements at play. All right? So there's so many different strategies that you can use to invest. That's not what I'm talking about. I'm talking about when you invest in property, there's a lot of different things that you need to know how to do and how to do well in order to increase your chances of success in property.
So one of those skills would be market selection. So choosing your broader market, so what state you're choosing, what city you're choosing or what region. So finding the good areas and looking at where in the cycle those areas are. If you can choose the right area, that's going to increase your chance of success. Another skill is then suburb research. So once you've chosen your local region, looking at the suburbs within that region and finding the best suburbs that are most likely to increase in value, that's another skill in and of itself that's completely different from choosing the region. And if you're good at that skill and you can find a good suburb,
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People often fail to succeed in property or in life because the refuse to take full and utter responsibility for what happens to them. Are you ready to step into responsibility and the life lessons and positive change that come from that?
Hey guys, Ryan here from OnProperty.com.au. I help people find positive cash flow property and I am walking around my office today because this is an episode that I've wanted to create for quite a long time and I actually went for a walk a couple of years ago and did an entire rant on this but never actually published it because the audio quality wasn't very good and I felt like I could have explained it better and I always had the intention of re-recording the episode and explaining it better.
But every time I sat down to do it I just found that it was extremely difficult to get this concept across in a way that was good for people to understand. And so I've just tried sitting down at my desk and recording it down there and couldn't make it work. So I'm trying to standing up and walking around because I really want to get this episode out no matter how good the quality.
So I'll try my best. And that's this idea that there's this one key principle that people forget or people miss or people choose not to care about when it comes to investing, whether that be investing in property or other investments. And that's this idea of taking complete responsibility for yourself and your financial actions.
When I invest in something, when I put my money into something, when I start a particular business, I take full responsibility for the outcome of that investment. So if I invest it in something and it loses money, I can blame the people responsible for me losing money or I can take responsibility myself. So let me use an example. This was going on about seven years ago. I was really quite poor living in my mother-in-law's granny flat with my wife and our baby girl who is now nearly eight years old.
So yeah, about seven years ago and we didn't have a lot of money. I think I was working one or two days a week trying to get my online business off the ground, which didn't work and my wife was taking care of our kid. So we did not have much money at all, like it's ridiculous to look back and look at how much little money we lived off back in the day. But I discovered this idea of buying things from China, importing them and then selling them on Ebay and I found this opportunity in usb sticks where you could purchase them from China for a decent price and then sell them for a hefty profit on Ebay. And so I purchased some of these USB sticks.
I think I purchased a small amount and sold them and thought shivers, this is good. So I basically put all our savings at the time, which was about a thousand dollars into purchasing more of these USB sticks from this company.
And so I purchased, sent the money across and then after I had sent the money, I found out that the initial batch people were complaining and sending them back because they were actually fake. They weren't actually, I think it was 32 Gig at the time. Um, and the USB sticks weren't actually 32 Gig, but they were just kind of pretending to be. So you would put more data on there, it would overwrite old data, et cetera.
And so it was this whole problem basically. And so I had just put a lot of money into these USB sticks to purchase more from China and the ones that I had sent out were faulty. And so basically I was in a situation where I had been defrauded by this company and there's nothing I ...
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Often people fail to buy an investment property because they don't set themselves little action steps to take each day. They simply set a big goal of buying a property and then get stuck because they don't know what to do next.
In this episode I show you how to actually take action towards buying a property this year.
To book a complimentary strategy session with the team at Pumped on Property click here.
Transcription: So often people want to invest in property, but they just take no action towards actually achieving that. So how can you start to take action this year towards achieving your property goals and your dreams of financial freedom or whatever that may be high on Ryan from on-property dot com dot a u helping you find positive cashflow property and I received an email today that was kind of upsetting. It was from someone who actually called themselves Mr. indecisive and basically went through the details about how they've been in this game for over 10 years. I've been thinking about property for over 10 years, but just barely done anything in that time and how one step has led to another and led to them basically not taking any action there. Also indecisive about what sort of investment vehicle they want to go after, whether it be property, whether it be shared, whether it be business, all of that sort of stuff.
So I don't want you guys to be Mr or Mrs. Indecisive. I want you to be able to take action and to actually achieve your goals. Because if you don't take action, then nothing's going to happen, so how can we do that? How can we take action this year rather than letting just another year pass by where we don't invest in any properties where we don't ever move closer to our goal of investing in property, and so the first thing that you need to do if you want to start taking action, is to have a goal for the year, have something that you want to achieve by the end of the year, so look at your situation now and then look at where you want to be at the end of the year. Okay? That is our goal. We need to bridge that gap. Now, if you're in debt, your goal might be to start saving a deposit and might not even be to save a whole deposit.
It might just be to save $10,000 towards the deposit or might vary depending on your situation. Or if you're someone that has a deposit or maybe you already own some properties and you've got some equity that you've been thinking about using in order to invest. Again, will your goal can be a bit more ambitious? Maybe you want to go and buy a property this year. Maybe you want to buy two properties. It's up to you what your goal is. No one can decide on that goal for you. In fact, don't let anyone decide on that goal for you. Don't talk to myself, don't talk to Ben, don't talk to another buyer's agent. Don't talk to someone selling house and land packages and let them set your goal for the year. Sit down and set the goal yourself. Where do you want to be in the future? 15, 20 years, and what do you need to do this year in order to move you toward that future?
Okay, so once you have the goal for the year, most people do that and then they just stopped there and look, that's better than doing nothing, but that's not going to get us to take action because if, if my goal is to buy a property, that's a pretty big goal and there's a lot of little steps that are going to be involved in order to buy that property and so often we'll set the goal, yeah, I want to buy a property this year, but then it's big.
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I'm investing in Crypto currency in 2018 and think that we could potentially be looking at revolutionary technology. Here's why I'm putting my money into Crypto this year.
If you're interested in learning more about how to invest in Crypto Currencies yourself I made a tutorial on how I am doing it and how you can do it also.
Click here to view the tutorial
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Transcription: In this episode, I'm going to be talking about why I'm investing in cryptocurrency in 2018 and why I think cryptocurrency is going to be such a big deal moving forward. Hey guys, I'm Ryan from on property.com dot EU. I help people invest in positive cash flow properties and today is a bit of a different episode from what I would usually do, not actually talking about property today. I'm talking about another investment vehicle called crypto currency, which you may have heard about or you may have heard about bitcoin or ethereum or some of the other coins that are out there. So if you're not interested in cryptocurrency, please feel free to skip over this episode and we'll be talking about property again in future episodes. But if you're interested in hearing my story and how I got into this and why I'm investing in it in 2018, then go ahead and stay tuned.
Alright, so I first started, I first heard about bitcoin years and years ago, like three or four years ago, did an article on it, even for on property. There was someone in Perth looking to sell their house for bit coin, so first heard about it then, but then started hearing about it, um, in late November 2017 where one of the dads from school had invested his money in a couple of bitcoins and I remember him telling me there are about $7,000 each. And I was like, what, $7,000 for a bitcoin? That is crazy. Why would you spend money on that? And then in the live q and a with Ben Everingham for some reason, bitcoin came up again and then some of my other friends were talking about it as well. And so it's kind of doing the rounds, at least in my life where people are talking about cryptocurrencies. And so I thought, you know what?
I'm going to work out what's going on. And so I started researching it and started looking into it in late December and I saw that the price of Bitcoin, I think it had skyrocketed and it was like 23,000 Australian dollars. And so thinking, okay, my friend bought some in November slightly before November for seven and now it's worth 23 that is absolutely crazy. And then started looking into the other coins like etherium, which is the second biggest one. And seeing that if you bought a theory and at the start of 2017. So let me just bring this up here. You bought a theory at the start of 2017, it was about $10 per ether, which is the coin. And if you look at the price today as I'm recording this, the price is about 1300 US dollars for ethos. So that's a hundred and 30 x return.
If you had a purchase ether at the start of 2017 to now over the course of a year. So if you had to put $10,000 into that, he would have ended up with one point $3,000,000 at the end or at the start of 2018.
Do you go with a different mortgage provider for each investment property or do you have multiple properties with a single lender?
In an ideal world every single loan that I would personally have would be with a different mortgage provider.
The reason for that is that most banks in their contact have what they might call an "all monies clause".
This means if you default on one of their loans they can sell multiple properties to get their money back even though they aren't cross-collateralised.
However, it's very difficult for a bank to go to another bank and try to sue them. They've all got the same firepower.
It's a lot easier for them to force a foreclosure on an individual investor rather than trying to force another bank to do what they want.
However, in some circumstances it does make sense to have multiple properties with the same lender.
It can sometimes give you increase borrowing capacity, access to better interest rates, offset accounts or other lending benefits that you wouldn't be able to get with difference lenders.
Always talk to a mortgage broker and seek professional advice on matters like this. This article should not be consider personal mortgage or financial advice.
But hopefully you can get some value from this.
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What advice do we have for a 21 year old student who is keen to start generating passive income already?
[su_note note_color="#dcf0fc"]Ready to buy a property but you feel stuck and need some help moving forward? Click here and get a free strategy session with Pumped on Property.[/su_note]
Ryan: Jack is asking what advice would you have a for a 21 year old student with still a few years of study but is already keen to start creating passive income?
Ben: You're probably better at this than me.
Ryan: I don't know if I should say what advice I would really have though, because I'm ...
Ben: Don't tell him to leave uni.
Ryan: Yeah, that would be my advice. But it really depends what you're studying, like if you're studying to become a doctor or something, obviously, you have to go through uni. Basically if you're 21, if you're in uni, assuming you're not making much money, or you've got some casual job in a café, the fact of the matter is, banks are not going to look favorable upon that. You need to assess can you even get a loan in any situation at all.
There may be certain situations where your parents may be willing to go guarantor for you, and you can get a loan there, but in a lot of situations you're not actually going to be able to get a loan. Yeah, you need to work that out.
I think first thing would be to just speak to a mortgage broker and to work out if you can borrow anything. Chances are you probably can't, so when you know that, whoops, sorry. Going to the wrong screen. When you know that, then it's about, well, okay. What are some other ways that I can create passive income? Or should you be focusing on saving so that you can buy once you leave uni and get a job.
But for me, the biggest advice I would be would be to look for other ways to generate passive income. That could be through online businesses, it could be through starting your own side business. They're kind of my favorite ways. What would you say, Ben?
Ben: I think if you've got your heart set on property, the two years before I finished uni was where I learnt most of the things, and then the year I finished and got an income I bought my first two properties, so as Ryan said, save as much as you can.
Use this opportunity as a time to learn, so there's some awesome podcasts like the On Property one that Ryan runs. He's got 500 odd episodes and he's done some amazing stuff, especially for people getting started. There's The Property Couch, which is an awesome podcast. There's some really good YouTube channels like Ryan's, Nathan from Be Invested.
He's another buyer's agent that I think he produces some really good quality content as well. He's got a different approach to presenting it, which is kind of cool to get a different perspective. There's really good information out there. There's some really good books that you can pick up.
I suppose the foundation that you need to build now to be able to build something meaningful in the future is based on education.
It's not so much making that money work for you now, it's just about getting yourself ready to so that in that first year you can pounce on the right investment property and hit the ground running and not save yourselves having to make all the mistakes that I sort of had to make, because I didn't spend as much time doing that stuff at the start, or at that time there wasn't as many of those awesome free resources out there.
Ryan: Yeah. That's actually a really good point is that even if you can't re...
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If you're in a negative cash flow situation what's the best way to get out of it and become positive cash flowed.
Ryan: All right. I've got a question from [Tez 00:00:03]. They're currently stuck with negative cash flow investment properties in Sydney. What would be the best way to get out of this situation?
It's kind of like, why ... ? If you're in Sydney, why would you want to get out? It just depends on when you bought and what your current situation is with loans and stuff like that, and if it's feasible and if it's good to sell those properties, and you have a strategy where you could reinvest that money into a better situation for yourself.
Ben: Yeah, there's so many different factors at play, there. It's really hard to answer that question because, again, it comes back to your strategy. I talk to people with three, four million dollars equity in properties in Sydney that are still tied to their job and have to go to work every day because it's a negatively geared portfolio.
When I suggest, why don't you sell half of it, buy a couple of assets outright with great cashflow, and just stop doing what you're doing, it's like, "Oh, my God, I couldn't do that," type mentality.
A lot of people are actually financially independent, they just don't know it, or they're not prepared to do what it takes to actually make it happen and [crosstalk 00:01:10] with that.
Ryan: Sounds like a lot of conversations we've had.
Ben: Yeah. Yeah, you should have that conversation with probably half the people on this call. There's probably a bunch of people there that are already in an equity position to be retired, they just don't want to convert it to cashflow yet.
Ryan: Yeah, well that's the thing. Sometimes that's a good idea, like if you're negatively geared and your properties are going really well, and the market's growing, and the properties are performing really well, and you want to keep it because you don't need the money yet, then that's fine. But if you're ...
I think you need to look at your goals and say, "Well, what am I trying to achieve? What do I want to achieve?" Some people, they want that passive income, and they want that cashflow so that ... because they hate their jobs.
They're working 9:00 to 6:00 every day and they hate their life, and they've got $4 million in equity, but they have to keep working because they're greedy about this $4 million.
Think about, what do actually want? Do you actually want cashflow and are you willing to do what it takes to get that? Which may mean selling some properties, or if you don't want to sell them but you can borrow again, maybe next time invest in positive cash flow.
There's so many things you can do, but just be real with your situation and be real with what you want, and then look at, what do I need to do to actually get what I want?
Because so many people just invest in property to make money, but they might make it, like Ben was saying, in the form of equity that they then don't ... never access.
It's like, well, what's the point? If you're never going to use it, your life's miserable because you hate your job, you've got all these millions of dollars of equity but it's not doing anything for you, aren't you just kind of wasting your life?
Ben: I have these strategy sessions, and you and I have a laugh about this regularly ... I'll have a strategy session with someone where their income is, let's say, $60,000 per year, and I show them over the next 15 years how they can build a quality low risk portfol...
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Where is the best place to find australian property statistics so you can successfully do your research?
Ryan: Alright, we're going to close off in a couple minutes guys. I gotta pick up my daughter from school soon, and take her to karate. She's gotten rather into karate lately. Rob is asking, "Where's the best place to check the stats?" If you're talking about ... I was just on yourinvestmentpropertymag.com.eu, they have a top [inaudible 00:00:18] section where you can check quickly and for free. You can check a lot of stats there. Where else is there Ben? That people can check stats.
Ben: There's a lot of good information for free on Real Estate Investor. There's amazing stats now that RP Data is feeding realestate.com and domain. There is amazing, amazing insight coming into both of those areas like suburb analysis in realestate.com, you can do research on agents, you can do research on properties.
It is becoming a really powerful tool to the point where I think within five years you'll be able to almost do everything you need to do on realestate.com. It's becoming an extremely powerful buying tool.
Ryan: Yeah, well realestate.com's gotten so much better for that sort of stuff since when I first started looking for this stuff. I remember trying to look for sold history or rental history in the past.
It was such a rabbit hole, you'd find these random sites that were half broken but would be able to show you, and now it's just all coming into realestate.com.au which is going to be a huge tool for everyone.
DSRData has some epic stats but I think they've just moved away from being free and they're quite expensive now. So I don't know if they've made that move yet or if it's going to happen soon. But yeah that ...
Ben: I honestly think between realestate.com, Property Investment magazines or dot com and then Real Estate Investor as well as the Australian Bureau of Statistics Starter. Almost everything that we look for is in those three free sources.
Ryan: Yeah, so it's ... If you know where to look then you can find a lot of good information out there. On the House is good as well but I'm not sure if realestate.com.au's just kind of taken over all the stats that they used to do. But they would do estimates and the value of the property as well as sold history for the property, recently sold in the area, that sort of stuff as well. So check out onthehouse.com.au, though in saying that I haven't used them in awhile. Because I haven't need to.
Ben: I know Residex just got bought out by realestate.com, sorry, RP Data and then On the House is owned by Residex. I'm not sure what happened there, if they've bought that as well and they'll just phase it out you know. There is some good information there I just find their evaluations as 50 to 150 grand off every single time.
Ryan: Yeah, they're not really trustworthy.
Ben: No.
Ryan: You kind of got to do evaluations yourself.
Ben: Sales in the suburb.
Ryan: Yeah, look at the sales and use your own intuition to work it out.
Ben: Unless you're paying for Real Estate Investor or RP Data's, but even those are so hit and miss as well.
Ryan: Well that's the thing, they can give you a good framework but you still need to go out and look at sold history yourself as well.
Ben: For sure.
Ryan: Cool, alright well we're going to close it off there guys. Thanks everyone for tuning in, this was the first time we did it. I was calling it a self launch. We did the marketing for it all,
What are public trustee options? Do you ever buy these properties and what are some of the pitfalls?
Public trustee auctions are a way to purchase property off the government and the great thing about buying at public trustee auctions is that the property has to sell on the day.
When the property goes to the public trustee it is usually because it's a mortgagee repossession, it's a deceased estate with no known family members in the country or no family members that want to be involved in seeing the property sell for a premium price point.
You may also have properties at public trustee options that have been through fires and are extremely difficult to sell. You could also have properties with major termite or pest infestations or damage or other issues along those lines.
When purchasing from a public trustee they often won't give you any indication of price. They will just take the highest price from the day, but even still this is often much lower than the general market value of the property.
It's a good idea to get a building and pest inspection done (at your own cost) prior to the auction. Because when you're buying at auction you don't get to set those exit clauses in the contract. Because it's a public trustee auction they will not provide those reports to you, so you need to source them yourself.
You should alway be very thorough in your due diligence before considering buying a property from a public trustee auction. But having said that sometimes the properties can be incredible buying opportunities.
You should also be careful and make sure you have your finances in order before the day so that you can confidently close on auction terms.
Ensure you've completed all your important searches such a flood, bush fire searches, easements on the property as well as checking where all the connection points are, sewer lines and those sorts of things.
You want to be very thorough before you even consider buying something from a public trustee auction. They can be epic buying opportunities but doing your due diligence and having all your eggs lined up before auction day is really important.
How Do You Find Out About Public Trustee Auctions?
In order to find about about public trustee auctions their are websites that you can subscribe to and (for a fee) they'll send you the details of public trustee auctions that come up.
Each state in Australia also has public trustee websites and they list properties that they have coming up so you can see what is available.
Then it comes down to doing your research at a suburb level. Often the public trustee or state government will identify one agent in the area to work with for a period of time.
They will often work with one agent for 12 months to 2 years and it's about identifying who is selling those types of properties in that area and building a relationship with them so you can get access to the public trustee properties.
While those agents aren't meant to give anyone an unfair advantage if you've got a good relationship with the selling agent then that can often help you to get the leg up and win the property on the day, or at least go into the auction more informed.
Are There Horror Stories For Public Trustee Auctions?
When you are purchasing a property at a public trustee auction you have to remember that these are auction terms.
This means if your finance falls over or you can't complete the purchase for one reason or another chances are extremely high that you will lose your deposit.
This is why it's so important to do your due diligence beforehand and have your finances in order before making an offer at the auction.
While I don't know of any horror stories in particular I can certainly imagine that people have been burned by public trustee properties.
You are buying the property in its current condition and form. You don't really have any legs to stand on liability-wise if you find out the property is in a...
Is the Rocklea/Acacia Ridge area a good area to invest in?
Do you notice good growth in that area and why?
Acacia Ridge is a southern suburb in the City of Brisbane. It's a suburb that has been consistently ticking away and gentrifying.
In the last 10 years it's outperformed Brisbane's overall growth with a reported 3.39% average annual growth rate according to Top Suburbs.
A few years ago about a third of Acacia Ridge was rezoned to allow for low to medium residential and high-density residential. This opens up the opportunity for more development in the area which may partly explain its above average growth over the years.
5-10 years ago driving through the suburb was extremely different than it is now. It was kind of like being in regional Australia. It was very run down, but the government has been selling out one property per month for a few years and there have been developers coming in with new projects.
Acacia Ridge has multiple train stations within just a few kilometres walking distrance and it sits next to Sunnybank and Sunnybank Hills which on average are much more expensive suburbs.
This means Acacia Ridge could possibly benefit from the ripple effect.
It has a university as well as a large shopping centre. For years it's been a suburb sitting there that is still super affordable.
It still has some housing issues and there are still a lot of first generation immigrants there as well as a lot of people on housing commission. However, housing commission doesn't seem to negatively affect capital growth.
There's still a lot of blue collar workers there but if it's a 15-20 year buy and hold I find it difficult to see how you are going to lose in this suburb.
It's only 14km from the CBD so it's a really interesting area. With Brisbane tipped as the highest performing city in the coming years Acacia Ridge will be a suburb to watch closely.
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For the last 3 years I have been showing people positive cash flow properties all over Australia. But sadly it's time to shut it down. Here's an explanation of why.
Ryan: Hey, guys. Ryan here from onproperty.com.au. I help people find positive cash flow properties, and I wanted to create a video to let you guys know why I'm shutting down On Property Membership. Now, just to clarify, I'm not shutting down onproperty.com.au the website, the free blog, the videos, the podcast. That will all still be running. I'm also not shutting down propertytools.com.au, which is a cash flow calculator that I make available to people.
What I'm shutting down is On Property Membership, which is the daily property emails that go out to people. So, people subscribe as a member, and I go out and I find positive cash flow properties, and I share those properties with my members. So, they get access to the details of the property, they see the address of the property, they see the listing, they see the asking price, the estimated rental income, estimated cash flow, et cetera.
So, these members are seeing properties from all over Australia that are likely to be positive cash flow. So, it just gives people a really good insight into them market, what positive cash flow properties actually look like, where they are, and these properties are available for sale now.
But, alas, I am shutting it down. Now, I started this service in April 2014 when On Property was really just in its infancy. Originally I started it as a membership website, and there wasn't actually many properties' listings at all. It was more education on how to find positive cash flow properties, so, video course in there. I had the calculator in there, and it was more just that sort of stuff.
And I kind of threw in the property listings on the side as something extra for people, but what I found out over time was that people were signing up for the property listings more so than they were signing up for everything else. So, over time, it changed to eventually where it was just property listings via email because no one was really accessing the membership website anymore.
But, a lot has changed since 2014. So, it's been over three years that I've run this service, and On Property isn't just your standard company. It is me. I run On Property, I create all the content, I find all the properties.
It's me, it's my awesome virtual assistant, [Dipti 00:02:15], who helps me, once I find the properties, to get them out to you guys, as well as my awesome transcriber, Julie, who transcribes all the videos so you guys can read them. But, yeah, it's a very small operation. So, it's not like a standard business where we just want to keep going on, and my life has changed significantly.
You guys may know that I went traveling in a van. We did two months with our kids in the van, and we ended up relocating up Noosa in Queensland, which is an awesome spot. But, basically, my life has changed, and what I need has changed, and On Property, as well as other websites that I have, I have a version of financial freedom already, and so I don't say this to arrogant or anything like that, but just to give you guys some insight into my mind, is that I'm not rich, by any stretch of the imagination.
I'm not completely financial free, so that if something were to happen to my business that I would be fine, but I am earning enough money right now that I don't have to work a lot because I have these websites generating passive income.
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Property horror stories happen to even the best investors. Today we detail Ben's latest horror story and how he's handling the stress.
Sometimes, when you invest in property, it goes horribly, horribly wrong. And today, we have a horror story.
Ryan: I'm Ryan from onproperty.com.au. Today's horror story is about Ben. You guys know him. My old buddy, my buyer's agent of choice. He's had a lot of success in property, but horror stories can happen to the best of us.
You guys may have heard about the Frankenstein house. If you go back with us a few years, you'll hear about this property that Ben had troubles with in the past in terms of council requirements and things like that. It's a bit of a hodge-podge house. Where do we begin? I've only heard half the story. So, I'm really excited to hear the other half and we thought that we will record it for you guys.
So, take us back. When did you buy this property and let's go into these issues.
Ben: This story started for me. The Frankenstein was the second property that I bought. It was on the Central Coast. It was a 5-bedroom, 2-bathroom home with a granny flat. When I bought it, upstairs, downstairs and the granny flat were all rented out. Obviously, I realized very quickly that was completely illegal to do that. And so, that's when the saga begins. This is was what? 7 odd years ago now or so.
This property has been unbelievable in terms of performance. It's almost tripled in value in over that period of time, but it's also cost me so many headaches, it's not even a joke. But, skipping through all the stuff that's happened, 3 weeks ago, I got a call of a mate who's living in Sydney. And he's like, "Turn on the local news." and I'm like, "What local news? I live in Queensland, man." He's like, "I just turned on the Central Coast news and I just saw your property. I think you should call your property manager." I'm like, "Oh, shit!"
Ryan: That's not a call you want to receive.
Ben: The footage was from a crew on the ground and a helicopter type thing. Just to set the scene for where this is going. I've called my property manager and she's like, "Yeah, I was going to call you. Something's come up." Effectively, the Saturday before I got the call, some police were called to the house because apparently, there was 2 illegal tenants living there that actually had a knife fight. This is how it started. I'm like, "Where are we living now? This is a knife fight." They’ve had a knife fight and they busted up some windows and the neighbors have called the cops in and the cops have come in and must have seen some other sketchy stuff.
So they walked into the property and gone, "Okay, we have to come back." A couple of days later, 6 detectives rock up with the drug squad and have gone to break the door down, effectively, and have warrants for people's arrest in the house. During that time of knocking on the door, for some reason, the granny that has been there for 15 years catches on fire. Cause undetermined by the police and the fire department. So, no one knows how it caught on fire. Timing-wise, logic would say to me –
These cops have effectively gone to the end of the property and couldn't because the granny flat's on fire. So, they've called 2 fire engines. They've come out, put the fire out and then, they've sectioned off the street. The cops have gone into the property and there's 8 adults living in the house, apparently, heavily drugged up – let's just say that.
They've all gone running and the police have managed to catch 4 of th...
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Negative gearing is not an investment strategy despite what people say. What is negative gearing and why are so many Australian's obsessed with it?
Negative gearing is talked about a lot when it comes to investing in property in Australia, but what exactly is negative gearing and why is it important?
Hey guys, I'm Ryan from onproperty.com.au and I help people find positive cash flow properties as well as learn more about investing in property. And you're listening to lesson number 6 in our series on the Introduction to Property Investing.
So what exactly is negative gearing? Well, negative gearing is the opposite of positive gearing, which we talked about in lesson number 4. Basically, negative gearing occurs when the income of a property is less than the expenses. This means that you actually need to find extra money to pay for those expenses, which generally, is going to come from your job. But, can also be from other sources like, maybe a positive cash flow properties. Or, maybe you have other investments.
A property is considered negatively geared when the expenses are greater than the income. Now, at the time of this recording, losses incurred on a rental property may actually be used to offset your taxable income and help you save on the amount of tax that you pay. Obviously, see an accountant if you want to do this yourself. This isn't to be considered taxation advise.
This can minimize the cost of holding a property and even turn a negatively geared property into a positive cash flow property if you include depreciation, which we're going to talk about in the next lesson. But, there are talks about removing this. So, check with the government, check with your accountant as to whether this still exists when you're listening to this.
Negative gearing is often called an investment strategy, but this is kind of misleading. Because really, when people say that they're investing in negatively geared property, their strategy is actually capital growth. To make money negatively gearing a property, you actually must increase the value of your property more than the amount of money that you're paying to keep it.
Let's jump into an example to get an idea of how this works. Let's say you purchased a property for $500,000 and you're getting $500 per week rent for that property. But, overall, your expenses are actually $600 per week. Because you've got to pay your mortgage. You've got to pay your maintenance cost, council rates, insurances, all of this sort of stuff. So you're paying $600, you're making $500 per week.
So this property is actually costing you $100 per week or it's costing you a bit over $5,000 per year in order to hold that property. So, if you're just negative gearing that property, maybe you save some tax so you're not losing $5,000, you're losing a little bit less. But, you're still actually losing money because you're paying to hold that property. So you actually need that property to go up in value more than the amount you're paying to hold it in order to make money.
This is why I say negative gearing is not actually a strategy in and of itself. Because if you're just holding a property and you're just losing money paying to hold this property and it's not actually going up un value, well, you're just losing money every single year. But, if that property goes up in value more than the amount of money you're paying to hold that property, that's when you can make some cash.
So that's the very basics of what negative gearing is.
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Equity is a term used a lot in property investing and it is really important when building a portfolio. But what is equity and why is it so important?
Equity is a term used a lot in property investing and it's really important to understand it. Especially when you're going from property number 1 and you want to jump in to number 2 or 3 or 4, etc. So, what is equity and how does it impact your property investment journey?
Hey, guys, I'm Ryan from onproperty.com.au and I help people find positive cash flow properties all over Australia. And you're listening to lesson number 5 in our series on the Introduction to Property Investing.
So, what is equity? In short, equity is difference between the debt that you have on a property and how much that property is actually worth. So the easiest way is for me to actually show you this and let's use an example. Let's say you have a property that is worth $500,000. But, you have a $300,000 mortgage on that property. Well, you would have $200,000 in equity. You take the value, $500,000, take away the debt, in this case $300,000, and that leaves your equity of $200,000.
So, equity is the difference between the debt that you have on a property and how much that property is actually worth. Now, equity is only truly measured when a property is valued or when a property is sold. Although, investors love to do their own equity analysis all the time based on what they think their property is worth.
But really, when a property is sold, that really tells you how much equity you have. Because you get the cash, you pay off your loans and whatever you have left, that is how much equity you had in the property. Or, when you get a property valued, then you can borrow against that equity.
That's a little bit different, so we're going to talk about that in a second. I just want to let you know that I'm not a mortgage broker, so this should not be seen as mortgage advise. But, borrowing equity, as I said, is a little bit different. So, for the purpose of this video, I'm going to label this term, "borrowable equity". I don't know if that's actually a term that people in the industry use, but I think it serves our purposes really well here.
So we'll use the example when we sold our property. Let's just pretend there's no expenses in selling it, just to make our math really easy because it's Friday as I'm recording this. So, if we have our $500,000 property and we sell it, we pay off our $300,000 debt. We have $200,000 left in our pocket. So that is selling it. But, when we borrow, it's a little bit different.
Now, generally, to get an equity loan, or to borrow against the equity that you have in a property, you can generally only borrow up to 80% or a residential property's value without incurring extra fees called "lender's mortgage insurance". This varies, so see your mortgage broker if you actually want to go ahead and do this.
Let's use our example again. But, we can only borrow up to 80% of that property's value, which is actually $400,000. So, we can borrow up to $400,000. We have $200,000 in equity, but we're only allowed to borrow up to $400,000. And because we already have a $300,000 debt, that means we can only borrow $100,000. As you can see, our borrowable equity is only $100,000 even though we have $200,000 in actual equity.
The reason equity is so important is because saving a deposit is really, really hard. If you've purchased a first property, you would know how hard it is to save that deposit.
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What is positive cash flow? It is an excess of income when compared to expenses generating a recurring profit which is known as cash flow.
Alright. Now, we're into the good stuff. This is one of my favorite topics, "What is positive cash flow?" I absolutely love positive cash flow because of the flexibility it delivers to investors because it can help you become financially free. And so, let's help you out to begin to understand what exactly is positive cash flow.
In its essence, positive cash flow is an excess of income when compared to expenses. So when you purchase a property and rent that property out, you're now generating income in the form of rent. However, owning a property also comes with a whole bunch of different expenses. So, you probably have interest rates on the mortgage that you use to mortgage the property. You've got things like council rates. You've got insurances.
You've got to pay for water and electricity sometimes. You've got rental manager fees if you get someone to help you rent out the property. There's a whole bunch of different expenses that come with owning a property.
Positive cash flow happens when the rent that you're receiving is greater than all of your expenses combined. A really simple example is if you purchase a property and it's earning $700 per week in rent and your expenses, when you add them all up, is $600 per week. That's $100 difference between what you're earning and what you need to pay on that property and that $100, you can do what you want with it.
You can take it to the pub and spend it on the pokeys, which I don't advise. But, hey, you could do it or spend it on alcohol, which is probably a better investment, but still not very good. Or, you could re-invest that money into the property – use it to pay down debt. Use it to purchase new properties or just use it to fund your lifestyle. So you can what you want with that money, which is really exciting.
In most general terms, that's what positive cash flow is. If the rent is higher than all of the expenses, whatever you have left over, that is positive cash flow.
There's another term called "positive gearing", which is slightly different and does require some tax savings in order to achieve a positive cash flow situation. But, we'll cover that in the introduction to positive cash flow course, which we'll go more detail into the specifics of positive cash flow. Check out that course if you're interested.
A really exciting thing about positive cash flow is that over time, as rents go up, and if you buy in a good area, then the rents should go up. Over time, as rents go up, your cash flow just continues to improve and you may get to a point where you're using that cash flow to pay off the debt. Once you remove the mortgage that you had to pay for the property, then cash flow increases even more.
So, generally speaking, the longer you hold that property, assuming it's in a good are and that area is increasing in value, then, your positive cash flow and the cash flow that you have to spend is going up as well. Do that across multiple different properties, and then you can achieve financial freedom.
But, I think my favorite thing about positive cash flow is the fact that it just gives you flexibility. So let's say you purchase a positive cash flow property and then you lose your job. Well, that property is paying all of its expenses and it's giving you some money left over.
So you've got the flexibility to keep that property and it's actually helping put food on the table wh...
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Property investors generally make money in just 3 basic ways. Knowing these methods will give you a high level understanding of how to make money through property investing.
People invest in property in a variety of different ways. There's subdivision, development, buy and hold, positive cash flow, units, houses, town houses, investing for capital growth, dual occupancy. There's so many different ways to invest in property and people invest for all sorts of reasons. But, generally, when you boil it down, there are 3 ways property investors make money.
So I'm going to outline these 3 ways in that lesson to give you a high understanding of how property investors make money and then we'll go into more detail in future lessons.
The 3 ways property investors make money is capital growth, positive cash flow and tax benefits. You can actually make money in all 3 ways. You can make money in just 2 ways. Or, you can make money in just 1 way. But, as you'll see overtime, every different investment strategy tends to make money in one of these 3 ways, at least. So let's go over them quickly.
Capital growth, which we'll talk about in the next lesson, is basically the rise in value of something – In this case, your property. So, you buy it for a certain price. It goes up in value and then you re-sell it or your borrow against that increase price to access the money. So, you gain value that way and make a profit.
Positive cash flow is an excess of income compared to expenses. So, you buy a property and it costs you a certain amount per month to own that property and if you make more than that amount, you can pay all those expenses using the rent and you've got money left over which is profit.
And then, tax benefits through depreciation. You can actually save tax and make money as a result. This does get a bit complicated, so I will do a full episode on depreciation. I'll probably do a full series on that in the future. But, you can actually invest in property just for the tax benefits it gets. And because of those tax benefits, you can offset more money than the property costs you in tax, effectively making money on paper.
So, they're the 3 ways that people generally make money in property. There's so many different strategies, as I said, but they all tend to revolve around making money in one of these 3 ways. As you'll see, as we get further into future courses and we look at all these different strategies, you can come back and see. Did I make money through capital growth, positive cash flow or through tax benefits?
To keep learning, visit onproperty.com.au for more lessons or click a video below to continue. And while you're at it, why not check out our membership where we list new positive cash flow properties everyday? Go to onproperty.com.au to see the details.
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What is property investing? In lesson 1 of the Introduction To Property Investing we look at the definition of property investing and why people chose property over other investment options
What is property investing? On the surface, this is a really simple question and we're definitely going to go into the definitions of this sort of stuff. But, we're currently going to look at why people invest in property as well over other investments like stocks or maybe creating your own business or something like that.
First, with the definition, which I got from ye old Wikipedia. Property investing, which is generally also known as real estate investing, involves the purchase, ownership, management and rental and/or sale of real estate for profit. It's a purchasing of real estate, whether that be houses, units, blocks of units, commercial property, offices, all of this sort of stuff. And you're purchasing it in order to make a profit and that profit can be made in different ways; which we're going to talk about in the next lesson, about how to make money investing in property.
But really, you're generally holding on to that property for a period of time and you're either making through leasing that property out or renting that property out and generating an on-going income and you're making a profit that way. Or, you're making a profit through increasing the value of that property. That increase may happen as a result of the market going up like Sydney and Melbourne did in 2016 where they just jumped 15%, 18% or something like that. People, their properties have gone up $100,000 in 6 months.
It could be like that. Or, it could be actually changing property and maybe developing. So, turning a block of land into a block of units or adding a granny flat on the back of something. You can actually make changes in order to increase the value of your property and make it a profit. That's kind of what property investing is.
Some of the reasons that people invest in property over other asset classes is that one of the things with property is that you can borrow a lot of money to invest in property. You can borrow money to invest in shares, it's not as common and it can be slightly more difficult, but it's very common for people to borrow 80%, 90%, 95% of the value of a property in order to purchase it. So, where a property might be $500,000, which a normal person couldn't afford by themselves, they could save a 10% deposit, maybe $50,000 and then go ahead and purchase a property. They can purchase investments that are worth way more than they could actually afford to buy otherwise because of the ability to borrow money.
They also tend to have limited liquidity, so stocks, in most circumstances, you can sell quite quickly, within the day. Real estate, generally, has a slower turn around time. Depending on your area, it can be as little as a few weeks in a really hot area where the buyer wants to move really quickly. But in other areas, it can take up to a year to sell your property.
So, it's less liquid, it's harder to change hands. You've got to go through a real estate agent, the whole buying process; you've got to get solicitors involved and things like that. But that limited liquidity has its benefits, as property is generally seen as a more stable investment.
I'm not saying that it's less risky because there's obviously, risk involved. But because of that limited liquidity, it doesn't fluctuate just like the stock market does. Or, maybe it does fluctuate,
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There are 3 main stages to property investing. We look at them in detail and give tips on how to make the most of each stage.
Interviewer: There are three major stages of a property investor's life cycle if they're aiming for financial freedom. The first stage is accumulation where you're accumulating properties and growing your portfolio. Then you're consolidating your portfolio and adding value. And then, you get to enjoy it and live the lifestyle, which is the third part.
So today I have with me Ben [Averingham 00:00:19], my [advisation 00:00:20] of choice from Panton Property. And we're going to go through these three different stages and what you can look at doing in these stages to help you be more successful with your property investment. So, hey Ben! Thanks for coming on today.
Ben: Thank you. As flaky as it sounds I'm actually pumped and excited about this episode. This is cool stuff for me.
Interviewer: Yeah, well this is an exciting topic. I love mapping it out more step-by-step approach to actually achieving financial freedom rather than...I guess what we usually talk about, which is have your goal, what's the next step towards that goal...but that's as far as we get...so it'd be fun to map out the journey and I know you've been through this journey yourself or are still going through it, and so you'll be able to provide people with a lot of insight into things that they can do.
We're assuming with this episode that your goal is financial freedom, and that will look different for different people, but generally that means a set amount of income per year coming in passively through your property investments.
So we're not talking about having a billion dollars in the bank or even having 10 million dollars in the bank, we're talking about getting to the point where you've got more income coming in than you're actually spending in expenses so you can live indefinitely. You can play golf. You can go to the beach. You can do whatever without having to work. So I just wanted to set that at the start so people know what we're talking about.
Obviously, to achieve financial freedom through property and to get to the third stage, which is lifestyle, you first got to get some properties, right?
Ben: Yeah. A lot of people just want the lifestyle, myself included, but there's a price that has to go through unfortunately before that.
Interviewer: Yeah, so stage number one is the accumulation phase. So, if you want to talk us through that then.
Ben: Yeah so the accumulation phase is where 90% of the hard work is going to be. The way that I think about accumulation for me personally when I was doing it...and I've just gone through my first accumulation and consolidation phase and I'm back to accumulation again...I think about accumulation like a massive plane trying to take off a runway and it takes a huge amount of energy to get off the ground, but once it's in the air it's just minor tweaks to actually get to where you want to be. It's a lot easier.
The accumulation phase is really where you get confident at identifying the right type of property.
You get your strategy in place, and then once that stuff's done you just stop thinking about it and you just, like your email the other day that you sent out to me and some other people that subscribe to you, you just get on with your shit and focus on doing stuff instead of talking about doing stuff, planning to do stuff, or just planning because you enjoy planning and never actually starting a...
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After you have development approval there is a still a lot of work to be done. Here's what happens after you get your DA Approval.
Speaker 1: Once you've received your development approval or DA, as they call it. And, you're ready to go ahead and move forward and build your property. There's still some steps that you need to take in the designing process. And, so today, I have with me Luke from durackarchitects.com to talk through this second stage of The Building and Development Process after you've had your DA approval. So, hey Luke and thanks for coming on again today.
Luke: G'day Ron. It's good to be here again.
Speaker 1: Okay. So, we did a previous video, which people should go back and watch if they haven't already, talking about working through the planning and getting the development approval for your development, whether it be a new house or a renovation or whatever it may be. So, we assuming that now people have that approval, and we're going to talk through the next steps, which will be getting the construction documentation ready, choosing builder, as well as going through the construction process.
Just to give you guys a really good overview of the complete process that you're going to go through. So, after we receive our DA, what's kind of the next step? Do, we then go back to an architect, and then we start working on new documents?
Luke: Yeah, so you've got your approval, hopefully that hasn't taken too long.
Speaker 1: Yeah.
Luke: Meanwhile, your architect may have chosen to continue on with the documentation in the hope that there wouldn't be any real issues with getting the approval or things might have been put on hold until you've got that approval from council. So, assuming everything goes well, your architect can say, "That's great, we got our approval. We'd like to move ahead with the next stage."
So, the next stage is basically an additional level of detail to the drawings and documents that you supplied council that enable a build up to price and build your project. So-
Speaker 1: So, this is not just the blueprints that you see, that gives you the overview of the floor plan and stuff like that. This is like, "You need X amount of timber and like all these sorts of materials to go into the house." Is that what this is?
Luke: Yeah, it's the detail that a builder needs in drawing form, and written documentation form that allows them to build what you designed. So, you've built a house that's got these lovely screened balconies on it.
You've designed it with these steel beams that run the perimeter. How exactly do you want those steel beams to look? How do you want the screen to connect to them? How are they going to hook onto the building? It's that detail that lets a builder know, "Okay, it's steel, it's not just a line on the page. It's got a certain type of connections and this the way the architect wants us to connect it to the building."
So, builders don't typically build from DA drawings, or development application drawings, although from some cases they do. But, there's not a lot of detail in DA drawings. They're there to give the council a general idea of what you're planning to do, and satisfy them that your design sits within their rules and codes and controls.
But, in order to get the building built you have to add more detail. So, as they say God is in the detail. And, you need to take those DA drawings to the next level,
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The development approval process can be really daunting if you haven't gone through it before. There's a lot of different steps to take that you're probably not aware of. So today, I have Luke with me from durackarchitects.com to talk through the complete guide to the development approval process so you guys can get an understanding of it and you guys can stop being overwhelmed and know exactly what to do next.
Ryan: Hey Luke, thanks for coming on today.
Luke: Good day, Ryan. Good to be here.
Ryan: Do you want to first give us an overview of the development approval process for getting a development approved so we can start building it? And then, we'll go into the nitty-gritty and the step-by-step.
Luke: Yeah, sure. It's one of those areas that doesn't need to be as daunting as it probably is for a lay person. Typically, you would employ an architect to start the design of your new house or your alterations and additions to your existing house. They would work with you to get the appropriate documents that you could then submit to council or your private certifier if you're going through a compliant development pathway.
Once you've got that, assuming everything goes well, you get your approval from council then you write to move on to the next stage, which would be an extra level of detail to the drawings that you've supplied for your DA so that a builder can build what has been designed. You will then select a builder, get them to price what you've designed and then you move on to the construction process and pretty much where you go.
That's it in its briefest form, I guess.
Ryan: Yeah. And so, we're going to break this into two parts. The first part we're going to talk about the process up until getting your development approval. And then, in the second part, we're going to go more into the construction drawings and what sort of things you need to do after development approval, but before the construction of the property actually starts.
Let's say that I've just purchased a piece of land and I want to do a development on it. Or, I've purchased a property and I want to do a renovation on it. What's the first sort of step that someone in that position needs to take?
Is it to contact an architect like yourself and just say, "Hey mate, I'd like to build a house. What do we do?"
Luke: It is that basic. I'm a bit biased, but I would say the first step is to contact an architect. The other options are to speak with a building designer or a draughtsman or even a builder. But, from an architect's point of view, the best thing you can do is to contact an architect.
Ryan: I was just going to say, what are the reasons for that and then how do we choose a good architect?
Luke: The reason I'd say that and without sounding up myself, I guess –
Ryan: Well, you're going to be biased, you are an architect. So, we can expect some bias advise here.
Luke: Yeah. But, from a design outcome, if you want a great result, you go with an architect. Now, the great buildings in the world, and I'm not talking about just Opera Houses and Guggenheims and so forth, were build by great builders, but they were designed by great architects. Builders are great at building, but architects are there to design your building.
We're the ones placed to negotiate the various aspects of the whole package. We spent 6 years or more – I probably spent 7 or 8 years at uni learning how to design buildings, learning how to put together what we design.
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House sitting can be a great way to stop paying rent and help you save your deposit. Here is a basic guide to house sitting.
More and more people these days are finding it extremely difficult to save a deposit either to purchase their own home or to go ahead and purchase an investment property. One of the options to save money to help you achieve that goal is actually house sitting. Reducing your rent by sitting in someone else's house basically rent-free.
So, today, I have Robyn on from comparehousesitting.com.au to talk about this new trend that is happening where people are house sitting as a way to save their deposit.
Ryan: Hey Robyn, thanks for coming on today.
Robyn: Good day, Ryan.
Ryan: So, why don't you talk through what exactly house sitting is for those people who aren't completely aware of it.
Robyn: Sure. House sitting is a booming worldwide trend where homeowners open their home to house sitters to live in while they are away and care for their property, home, gardens, whatever they have. It might be just an apartment with a cat. And particularly, caring for their animals. This enables animals to remain in their familiar environment and not have to be put into pet prison and be cared for and loved and have their familiar routine and it doesn't cost anybody a cent.
The homeowner doesn't pay the house sitter and the house sitter doesn't pay the homeowner anything because it's a fair exchange – a mutual exchange of services. House sitting, the communities are made up of people who cooperate for mutual benefit, rather than financial gain. And, from my experience, it's a really nice way to live.
Ryan: Yeah. And people who have pets and who want to go on holidays, it can be very difficult to find accommodation that will accept your pet. So if you put your pets in those pet hotels or pet prisons, as you called them, they can be quite expensive. I remember my mother-in-law needed to do it and it was like, $40 or $60 a day or something like that, and that was to have her dog go and stay with another family.
It can be very expensive so I understand why people would want to have people come and house sit and look after their pets. Because it saves them money, allows them to go on holidays. And then, obviously, for the person house sitting, they get free accommodation, basically, in exchange for looking after pets or the gardens or the house, etc.
So, obviously, we can see that this can be very beneficial. Did you say that this is a trend and more and more people are house sitting these than they used to?
Robyn: It's a booming worldwide trend and particularly booming in Australia because people are increasing home ownership. People are living longer, they're more healthy, they're traveling and they're internet savvy. Also increased mobility in the workforce, more and more people are location independent, work-from-home; which is perfect for homeowners because a lot of homeowners do like the house sitter to be around quite a bit. But, that's all negotiable.
That's not always the case. Often, in a city, there are homeowners who just want someone living, coming and going out of their home. They may not even have pets or they may just have a pussy cat. You can go to work full time because the homeowners go to work full time and the animals are accustomed to being home alone.
So, yeah, there's all sorts of house sitters for all sorts of reasons and the house sitting websites featured on my site – Compare House Sitting. They're really easy to follow.
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In this random update I share how I recently achieved my long term goal of financial freedom and the difficulties that come with that.
Ryan: Hey, guys. Ryan here from onproperty.com.au helping you find positive cash flow property.
This is one of the first solo episodes that I've done in quite a while, where I'm not actually going to be teaching you a specific property technique or principal or anything like that. This is going to be more free-flowing, talking about financial freedom, goals, and things like that, because this year has been very interesting for me. This year I achieved a certain level of financial freedom. I actually call it pseudo-financial freedom, because I'm financially free now, but if I completely stopped, then in the short to mid future, then I wouldn't be financially free.
I didn't actually achieve my financial freedom through property investing, but I achieved it through businesses and more specifically the web sites that I have. I run a big network of web sites, each which generates different levels of income, some more than others, and I'm basically at the point now where I can generate enough income without actually working. So I've achieved a level of financial freedom; however, these web sites are making money now.
In a couple of years, if I don't touch them, if I don't update them, then they probably won't be making as much money.
So I call it pseudo-financial freedom because I have achieved it, but also there's some work required in order to maintain it or to increase it or keep it going in the future, but I'm at a point now where I can choose what I want to work on. I can choose whether I want to work at all or not. I could spend the entire day at the beach. I could spend the entire week at the beach, and it wouldn't really matter. So I'm in this new phase of my life.
I'm in a very interesting position now where I get to experience things that most people don't get to experience because they never actually achieve financial freedom or they don't experience them until they're 65 and I'm 28 at the moment.
I always thought that when you would achieve financial freedom that it would be super happy days, that you would just click your fingers, quit your job, and then live happily ever after because you could do whatever you want, but what I'm finding is that it's actually very different to that, at least for me. I'm a very driven person. I like to be creative. I like to teach people and share things.
I really like to challenge myself, and achieving financial freedom and not working doesn't really accomplish those things for me. So, I'm in an interesting position where I've achieved the goal I set out to achieve, or at least a version of it, but I'm not in a position where I'm completely in sync with that or completely stoked to that.
You can hear kids in the background. It is happy hour here, bath time, and my son has just had his immunizations. He's a little bit cranky.
Anyway, I am going on this journey of exploring what this is going to be like to share with you guys. I'm not at the point now where I can really talk about it in like a super succinct way and get across to you the feelings that I have or solutions that I have. I do believe that this is going to have an impact on the content that I create for onproperty as well as the way I approach teaching people, the way I approach goal-setting and things like that, because I got to the point that I achieved a goal that I have been trying to achieve for years and realized that, well,
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Most of us know about the headaches of the council approval process, but not many people know they can fast track approval through the compliant development code.
Ryan: When it comes to renovating or developing property, most often you need to put your designs through council and go through that entire process in order to be able to actually build what you wanna build. However, there is another way to do it through the state environmental planning policy, we're specifically talking about New South Wales here. And this may eventually be expanded to medium housing as well. So there's opportunities to fast track developments for you guys.
And so today, I have on the show Luke Durack from durackarchitects.com and he's gonna give us an overview of what exactly this is and so you can understand this opportunity. So hey Luke, thanks for coming on today.
Luke: Good day, Ryan, thanks for having me.
Ryan: Okay so I think it's best to start where people are probably most familiar which is if we wanna do something to a property, let's say we wanna add a second storey or we wanna add a room at the back or any sort of development or renovation, most people would assume, "Okay, I've gotta put that through council in order to get that approved."
But you're saying there's actually for some particular types of renovations or developments, there's another way to go about it. So can we start there?
Luke: Yeah, so as you say, at the moment, still the standard way to go through a development pathway is to go, put your documents in place and submit to council a DA. But there is a fast tracked way of getting development and building approval in one hit that allows you to bypass council altogether.
So for certain types of development, for example a house, adding a second level to a house, a single storey house or a two storey dwelling, you put together your ... there's certain documents that are required to satisfy the requirements of this compliant development code and submit them to a private certifier and you can have your building approval within 10 to 20 days as opposed to going through council and all the months of headache that that might create.
Ryan: Yeah, and then if you do get approved or you don't and it comes back and you've gotta adjust things and you gotta go through the council process again. It can be very difficult for people, I know.
Luke: Exactly. So this is a real winner but a lot of people don't know it exists. And you know, it's only for certain types of development. And it's very black and white whereas the current DA process, there's some room for movement, there's some gray areas. With compliant development, you basically have to tick all the boxes. As soon as you don't tick one box, you fall outside, the ability to run down that path and you have to go back to a DA.
Ryan: So do granny flats fall under this? 'Cause I know recently in New South Wales it's become much easier to build granny flats?
Luke: Yeah, it does. So it includes studios, granny flats. As you probably know, there is I think 450 square meter minimum lots size for granny flats.
Ryan: For me to build up to 60 square meters, et cetera.
Luke: That's right. Those sorts of ... just the way DA has certain requirements through the DCP and LEPs, the compliant development has a set of controls that revolve around the same sort of things.
So [inaudible 00:03:39], landscape, you know, building height, setbacks and that sort of thing.
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What do all the different property types mean? In today's episode we explain the difference between houses, units, townhouses etc.
When searching for property, often you'll come across the different property types being house, apartment and unit, townhouse, villa, land, acreage and rural, blocks of unit and retirement living. So what do all of these different property types mean? That's what we're going to go through in today's episode.
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property. In today's episode, as I said, we're going to look at the different property types. The easiest way to do this is to simply go to realestate.com.au and go ahead and search by property types.
The most straightforward one is going to be the house. So, this is generally a freestanding building on its own block of land. I'm not going to go into all the different types of land titles or the different developments, types and things like that, different zoning for areas because that varies from council to council. But, if we go ahead and have a search for houses, we can see a few detached houses here, which means the house is completely freestanding.
But then, we also have some semi-detached houses or houses that are attached to each other. Here, we have one in Erskineville in Sydney in New South Wales that is a terrace sort of house. There is joining walls on both sides of these houses.
However, we'll see when we go into townhouses and villas that these differ because they don't have common land. So they share common walls and, obviously, you need to work with your neighbour if you're doing anything in the common wall. But they don't have common areas or strata or anything like that that they need to pay for. They just have their own house, their own block of land, etc. If you keep going through, we'll see a lot of detached houses.
Let's go back and look at the next one, which is going to be apartments and units. These are very different from houses. Generally, this means a building with multiple units within it. Generally, we can see a big unit at the start here or we can see smaller units as well. These generally have common internal areas, common external areas. Generally, it's one building with lots of different units in it.
This one here in Croydon, New South Wales, is a prime example. You've got the entrance and it looks like there's 4 units at the front there. There may even be more at the back. They would all share the front garden. With units, something to consider is strata and body corporate fees. Everyone who owns the units, they all come together as a committee.
They form a body corporate and they make decisions on how to spend money. There's extra fees that go into a unit that don't necessarily go into a house because you've got to pay these quarterly strata fees that go towards the maintaining of the common areas or if they want to do renovations to the building or things like that.
Next, let's have a look at townhouses. Townhouses and villas are quite similar. Townhouses and villas are generally properties that are attached to other properties. But, they tend to be in complexes as well.
It's kind of like a mixture of houses and units. We can see a freestanding townhouse here. We can see a freestanding one here as well. But, what it means is that you've got a property, whether it be fully detached or semi-detached or attached to other properties, but you are in a common complex or a common block of land.
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When buying property off the plan there are some serious risks you need to consider or you might end up with a bad investment.
When investing in property, one of the things you'll probably ask yourself at some point is, "Should I buy existing property or should I purchase property off the plan?" It's a question that a lot of people wrestle with. And so, today, I wanted to talk about some things to consider when buying off the plan. Both the benefits of it as well as some of the risks that are associated with it.
So, hey, I'm Ryan from onproperty.com.au. I help people find positive cash flow property. And a lot of people do email me asking what do I think about buying off the plan. In fact, I was on a webinar with Ben Everingham last night and someone asked this very question.
What do you think about buying off the plan? They were saying, if it's got a decent yield, does that mean it's okay? The fact is, there's a lot of things that you need to consider and thing about so I thought it'd be great to create an episode. At the end of this episode, you'll be more educated and you'll know the things to look for if you are actually considering going down this route.
First, let's look at some of the benefits of buying off the plan as well as why people seem to get so excited about this type of investment. Well, I think, one of the most exciting things as a human being full of emotion, which we all are, is buying something brand new is extremely exciting just for the fact that it's brand new.
It's all of this really nice fixtures, really nice fittings, brand new everything. And chances are, you've probably never moved into a house and lived in it and been the first person that's lived in there or in a unit. And so, to get something that's brand new versus something that's existing and old and a bit worn down is obviously very exciting. It makes us feel good about ourselves and our place in society.
There's also a lot of marketing hype around new build properties. They've got signage. They've got sales people. They've got models of it. They've got walkthroughs. And so, it can very exciting with all the marketing hype and things like that to try and get the best of the best in terms of property.
You also have the opportunity to lock in prices. So, you purchase the property and it might be a year or 2 years before that development is finished. But, you signed it a year or 2 years ago and you got a price at that point. So, there's the opportunity to lock in the price. You have a smaller earlier commitment. You do need to put down a deposit. But, obviously, you don't assume a loan for the development until you actually take over that property and own it yourself.
You also have the opportunity for depreciation. Because it's a brand new property, you can depreciate a lot of things. So that can help for tax purposes for some people. So, that's kind of the exciting things and why people think about it. But, there are actually a lot of risks when buying off the plan properties that people don't think about.
So, I really want to cover them because they'll never talk about these in the marketing flyers that you get or in the consultancy call that you talk to people about this sort of stuff. They're not going to talk about these risks.
They're just going to talk about how great the area is, how great this development's going to be, how you're going to lock in your price now. And so, I thought we're going to look at two types of risks. There's risk when actually buying the property.
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How can you find a good property mentor who will help you achieve your financial goals?
The best golfers have coaches. And some of the best property investors also have mentors to help them along the way. I recently got an email from an On Property listener asking them about what's the best way to find a good mentor? And so, I thought I'd create this quick video to help you find a good mentor if that's something that you're interested in.
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property. Finding a good mentor out of all of the different candidates out there can be a really challenging task. First, you have to find someone actually willing to take the time out to give you advise.
Is it better to pay someone or is better to find someone for free? And also, you don't want to get caught by a property spruiker and you don't want to get a mentor who's actually going to leave you in the direction that they want their life to go, rather than maybe the direction you want your life to go.
First, we'll talk about some tips before you start searching for your mentor and then we'll talk specifically about how to find your mentor. First, let's talk about what can you do before actually going out to look for a mentor.
Let me tell you, there are so many different ways to make money in property. There's so many different strategies out there that different people will have achieved different things. And most of the time, when someone is a paid property educator or a property mentor or whatever it may be, even if they're just invested in property themselves and had some success, they're likely going to say or have the idea that, "This is the best way to invest in property." And that's not always the case.
Look, there's so many different ways to do it. And depending in your goals and who you are, one way may be better than another. So you really need to understand, before you start looking for a mentor; what is it exactly that you want to achieve through investing in property?
So, this takes 2 forms. First, it's those goals of financial freedom or whatever your financial goals are mixed with the lifestyle that comes with that. So that's one goal, that's kind of the end goal that you want to achieve. But the other facet of that, the aspect that people don't usually think about is how much work and how much sacrifice are you willing to do to get there?
One thing for me, in order to achieve my goals, I don't have huge goals of multi-billion dollars or anything like that. But, there's only certain sacrifices I'm willing to make. I'm not willing to work 20-hour days every single day and not spend time with my kids as they're growing up.
So, when I'm looking at investing in property or investing in businesses or whatever it is, I'm looking at, yes, I'll invest some time into it. But, I don't want to have 2 full-time jobs, do you know what I mean? So, think about, "What are my end goals?" and also, "How hard am I willing to work? What sacrifices am I willing to make to get there?"
For an example, let's say developing can be a great way to make money through property. But often, it takes a lot of work. Creating the plans, being onsite everyday, dealing with council issues, all of that sort of stuff. You're very active in the investment when you're developing something. Whereas, if you just buy and hold a property and rent it out, then you're not doing much for that property.
So it's very sort of passive investment. So,
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When investing in property a deposit is paid upon the contract going unconditional. If your money is tied up elsewhere a deposit bond can be used in it's place.
Sometimes, when you're purchasing an investment property, you may not have the cash that you need for the deposit right there and then. Often, when you purchase, you're putting 5%, 10% of the deposit down. And for those people who have their cash tied elsewhere or may need their cash for other things, there is something called a "deposit bond" that you can use to put down as, I guess, a replacement for the deposit and you'll then pay it in future.
To understand more about this, I have Etienne on with me today from Deposit Assure. He supplies people with deposit bonds. He's the expert in this, so we're going to talk today about what exactly deposit bonds are and what sort of people and situations they're useful in.
Ryan: Hey, Etienne, thanks for coming on today.
Etienne: Hey, Ryan. Thanks, mate, I'm really stoked to be on here. I'm a big supporter of your podcast, so really looking forward to this one.
Ryan: Yeah. Well, we appreciate you coming on and getting your knowledge as well. Do you want to just quickly introduce yourself and then just answer people, what exactly is a deposit bond?
Etienne: Sure, okay. My name is Etienne Rizzo. I'm one of the co-founders of Deposit Assure. We're a business that's been set up about a year and half ago now. We're backed by QBE Insurance, which basically means that our deposit bonds are underwritten by QBE, which is effectively the strongest underwriter in our current market in Australia. They're an A+ credit rated agency.
To answer your question, Ryan, what is a deposit bond? If your audience goes back to the last time they bought a property, they would have had to provide the real estate agent and their vendor a 10% deposit. So, up to 10% of the purchase price to basically affirm their commitment to their unconditional contract of sale. Sometimes, it can be 5% as well, but effectively, like a cash deposit, what it does is it just basically gives the vendor some assurance that the sale is going to go through.
For some people who either don't have ready access to that cash, so you could be basically a first time buyer, for example, who's borrowing 100% of the purchase price and don't have the funds you need of the 10% to secure the property, you could use a deposit bond. Or, a property investor who is buying their first investment property.
Now that you've built some equity in your home, your money is working for you and your offset account, you don't want to use it to secure the property. You could apply for a deposit bond in that situation as well.
The third, probably, scenario, Ryan, is buying and selling, which we see a lot of. So when somebody's selling their property and the funds from that property is being used to fund the property they're buying, they are waiting for the funds to arrive on settlement. So they don't have access today to that cash to secure the property they're buying.
So those are, I guess, the main scenarios we see with deposit bonds.
Ryan: Yeah. And we'll talk a little bit more about them. Because I know people are probably familiar with the bridging finance when you buy and sell, but then, they don't often think about, okay, well, I actually have to pay 10% of the deposit 6 weeks or 4 weeks or however long it is before you actually settle and get that property. I need to come up with this large amount of money that not everyone has at that point in...
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How can you maximise the passive income of a property. In this episode of WWRD we look at how you can increase the income of one reader's property.
Hey and welcome to a very special episode of What Would Ryan Do, the series where I answer your questions and give you an idea into what I would do in your specific situation.
Hey, I am Ryan from OnProperty.com.au, helping you positive cash flow properties and this is a very special episode because the person who brought this question - Peter, actually allows us to share his property address so we can look into this in a bit more detail, which is really exciting. And he wants to maximize his passive income, which is a topic that I am extremely passionate about.
So, this episode is about how to maximize the passive income of a property and as we always do, let us head over to the question:
"Hi, Ryan! First of all thank you for posting educational videos on On Property. I have been a subscriber to your YouTube channel for some time now. It has been great listening to you. I really love watching the interviews, my favorite part of the channel."
Peter, thank you for being a subscriber for quite a long period of time and I am glad you like the interviews. Definitely, I have more of those in the pipeline.
So here is the question guys:
"We own a property, one title," - that is important, "two houses; 14,000 square meters. What strategy would you take to generate the most value from the property? And our goal is to generate passive income."
Peter, the way that I am going to be approaching this is - because value can be taken in so many different ways, generally in property you are either talking about the income of the property or you are talking about the equity value - the value if you went and sold the property. I am going to leave that aside in terms of the value when you sold the property. I will look at that and touch on that because it is important but I will be more looking at the passive income of the property because I just think you have such a good opportunity here.
So, background information is that it was purchased for $847,000 back in 2013 and this is going to be great for everyone watching because i actually just searched for the address of this property and we can actually see that it was sold for $847,000 on the 6th of September 2013. So this sort of information is public knowledge guys, again on OnTheHouse.com.au. If I went to the street address then it should also give us.
We can see what it has rented for. Conmparable properties, often that has a sold history as well. I am not going to waste your time trying to find that out at the moment but generally OnTheHouse.com.au also has that. So, it was sold for $847,000 or you purchased it for that. The last value is $1.12 million in 2015.
The front house rents for $410 per week, the back house is for $470 per week and the address is 82 McClelland Street, Chester Hill, New South Wales; so if you guys want to follow along, you can go ahead and check that out. Please do not be afraid to Google it, happy if you do use a screenshot, if you make a video out of it. So, thank you Peter for letting us share the address and to go through this.
So, a few things that I have looked up: obviously, I have looked up the listing for this property. I was reading through it and it is 14,000 square meters featuring two houses. The front house is 2-bedroom fibro - not brick; and the back home is a solid brick home with 3 large bedrooms. Now,
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I'm passionate about helping people find and invest in positive cash flow properties. Here's the products I offer to help my customers do just that.
Hey guys, Ryan here from onproperty.com.au and I am passionate about helping you find positive cash flow properties. In this episode, I want us to talk about the different products that I have that can help you on your journey to finding and investing in positive cash flow properties and moving towards your goal, which is probably financial freedom.
All of the stuff that I do, everything is all based from my website at onproperty.com.au. So I'm going to head over there now and we'll have a look at what I do offer. We'll go through all my products so you can see whether or not these are for you and if it's something that you want to go ahead and get access to.
So if we go to onproperty.com.au and we just hit on the Resources tab, that is going to show all of my products. So the most popular of my products is probably the On Property Membership. So if we go ahead and open this in a new window, we've got the sales page here, which talks about everything that you get. It talks about finding positive cash flow properties, etc. But the big difference between this and any other product on the market; firstly, is it's pretty low priced compared to the $1,000 coaching package that are out there.
This isn't designed to be mentorship. It's not designed to be coaching. It's designed to serve you and fill one particular need that you have, which is helping you find positive cash flow properties and then go ahead and invest in them.
There's 2 options. There's a Complete Package, which is what most people do and there's also the Starter Package. I'll go through and talk about them then we'll go inside the membership site so you can see how it works and you can determine whether or not you think this is going to suit you or not. So, basically, you get access to a few different things. The first thing you get access to is the properties.
Every single day, I go out and I find a high rental yield property with a good chance of being positive cash flow. We're talking yields above 7%, above 8%, sometimes above 9% or 10%, up there. However, if they're in dodgy areas, I don't tend to list them. So, every single day, I go out and I find a new high rental yield property that is estimated by my calculator – which we'll go through in a minute – to be positively geared. I want to show you guys that, yes, they do exist. Here they are, you can see the properties themselves.
These properties are on the market, available for sale. You can see the suburbs that they're in. You can go through, you can look at these. You can go ahead and call the real estate agent as well. Every single day, we list a new one and we list properties from all over Australia. So, New South Wales, Queensland, Melbourne, Victoria – basically, anywhere you can think of. If we can find positive cash flow properties, we do.
Big question that I often get asked around this is, "Do you find properties in capital cities?" The answer is, "Yes." However, not as often as in regional centers and things like that. So I do find positive cash flow properties in Sydney, in Melbourne, in Brisbane, in Adelaide, etc., etc. However, they're kind of spread out, so I might find 1 property in Sydney one month, a property in Melbourne the next month or something like that.
So if you're looking specifically for positive cash flow property in just a couple of suburbs or in one particular city,
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When purchasing investment property it's important to negotiate to get the best price. Here are some of my tips of how to successfully negotiate.
Something a lot of people ask me about is how they can be better at negotiating when it comes to investing in property.
Hey, my name is Ryan from OnProperty.com.au and I wanted to make this quick video sitting in my car - we actually have 3 car seats that fit in the back of this little Jazz, and I am actually shopping for a new car. We are looking for a car that is slightly bigger. We are quite happy with this small one. We love how cheap it is to run and everything like that, however, we were umming and oohing about getting a second car and decided to get one when my son broke his arm.
My wife had to quickly take him to the hospital; we realized we only had one car so how was I going to take her stuff to the hospital, go and visit, etc. Luckily we had an uncle who lives near us, super helpful. Thanks, uncle Al! He brought us his car and we borrowed that. What we realized in that moment, we need another car. Now, what does this have to do with negotiation? Do not worry, I am getting to it. Now, I am about to go and look at a car. I am about 15 to 20 minutes early so I have time to make this video. I am looking at this car, which is selling for $8,000.
It is a Toyota Avensis. I think it has 230,000 Ks or something like that, my wife was telling me. So not super expensive but this is a 7-seater car. After this, about one hour later, I am going to look at another Toyota Avensis that has done about 30,000 Ks less. I think it is just under 200,000Ks and it is on sale for $7,500. Both of them are silver and both of them are basically the same car. I do not know much about cars so I will get them mechanically checked if I am interested in buying them.
The reason that I said this is that when it comes to negotiating when it comes to trying to get the best deal from someone, I am obviously going to be doing some negotiating when it comes to these cars. It is so much easier to negotiate and to get a good deal when you have other options on the table. Now, we currently have a car - you can see me, I am in it. So our need to get a second car is not extremely high. We would like to have one but hey, if it takes a few months to get it then that is fine. So in terms of the pressure from my end, there is very low pressure there.
I am also looking at 2 cars that are exactly the same, very close in terms of price range. But I could take or leave either. I am not really worried about it. So when I am negotiating with either of these parties, then I am in a position where I can say, "Well, look. I have another car on the table. Here is what I am willing to offer. Here is what I think it is worth," and if they accepted or not, then that is fine because I have another option in the wings that I could go after. And if none will work out then I can wait a few months and continue to look at cars throughout that time.
A lot of people think when they are negotiating that there is this one deal and they want to get the absolute best offer on this one deal. But I think given property investing and given what you are doing - you are trying to find a property that is going to move you towards your financial goals. Given that, yet very rarely is it just one property that you need to get this perfect deal on in order for you to live the life that you want or achieve the financial outcomes that you want.
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Buyer's agents can help you grow your portfolio faster, but how do you choose the right buyer's agent?
Utilizing the skills and resources of a buyer's agent can help you move forward and invest in more properties faster, therefore helping you achieve whatever your goals may be faster as well. But how do you go about choosing the right buyer's agent for you?
Hey, I am Ryan from OnProperty.com.au, helping you find positive cash flow property and I work really closely with a buyer's agent named Ben Everingham from Pumped On Property and a lot of people do ask me for references for buyer's agents and I am always happy to recommend him. But, whether or not you have thought about him or whether or not he suits you, I thought it would be helpful to talk about how you should think about choosing the correct buyer's agent for you.
So, the first thing that I recommend before going to talk to Ben or talk to any buyer's agent is to actually have your own goals set first. This is something that not many people have actually done. I talked to Ben about it and he says not many people have clear-cut goals of exactly what they want. They might say that they want to own 10 properties that they want to be rich but they do not actually know what that means. So first things first, set some goals for yourself.
My goal for myself is $60,000 per year in passive income, which will give me and my family enough to get by. It is not a lush, lavish lifestyle but it is enough to get by. We do not have to worry about paying our bills anymore and then I can continue to work and run businesses and continue to grow that into the future. So, set your goals first; work out what is important to you so when you go to a buyer's agent you know what is important to you and you can begin to assess whether or not they can help you achieve your goals.
Because if you go to a buyer's agent without a goal already set, they are going to tell you what your goal should be and they are going to tell you goals that line up with their services. And so you can be - tricked is the wrong word, but convinced into using their services and you think you have your goals set but really it is just what they told you. So setting your goals first is definitely a good thing to do and I have a great episode on that if you go to OnProperty.com.au/day1. I talked about finding your financial true north. Actually, I probably need to redo that episode because it has been so popular.
So once you have chosen your goals, you want to begin to look for buyer's agents who can help you achieve those goals or who have already achieved those goals themselves, ideally. For example, Ben, who is the buyer's agent that I recommend. He has achieved financial freedom himself through investing in property and now helps other people do it as well. So if financial freedom is your goal, then Ben is a great person to go to.
However, if you want to do large scale developments - if you want to build townhouses, then he does not have as much experience in that so I probably will not recommend him. So based on your goals - if it is financial freedom, you can work out who is going to be the best buyer's agent for you. And generally, the best ones are people who have already achieved it and achieved it in a way that is feasible for you as well.
The second thing that I would recommend is to choose your own strategy first. So think about how you would like to invest, and again it comes down to 'if you do not have a strategy chosen out for yourself,
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In this episode of WWRD we discuss some options if you own a business and want to begin investing, but currently have no deposit.
Hey and welcome to What Would Ryan Do, the series where you provide me with some sort of property question and I do my best to tell you what I would do if I was in the situation and to try and give you some unique thoughts on the situation. Sometimes, it can be very difficult to see the forest for the trees. You are in your situation; you can only see what you can see and sometimes it is good to get an outside perspective.
We like to have a bit of fun with this. We do not take it too seriously. This is not to be considered financial or mortgage advice. It is just my opinion of what I would do in a situation but you need to assess what you would do because you obviously, know your situation best.
The question today, we are talking about someone who runs a business and they want to get into property but they do not have a deposit. So let us go through and we start by reading the question and then we will share some thoughts on it.
So, this person says, "I am a 49-year-old single bloke. I have had a restart in 2005 after someone special embezzled from my business." I am very sorry to hear that; that sounds absolutely horrible. "I now have a small super and a business. The business is worth around $1 million to $1.2 million with debt. I do not have a deposit but I want to get into property because I cannot work like I am for the rest of my life. How can I go about doing it? How can I do it?"
And so, absolutely great question. I am very sorry to hear that you are starting from scratch again - about 10 years ago you had to start from scratch again. But I think a lot of people find themselves in this situation where they need to start from scratch again. Now, you are in a unique position because you own a business, so you do not have a job and you do not have a deposit. So, this is making things difficult if you want to go ahead and invest in property.
So, I am going to give you some thoughts on things that you can do but again, no deposit and a business depending on how long you have been running that business, how much income you generate from it, how much debt you have on the business as well, will really depend on what decisions you make moving forward.
So, the first thing that I always advise everyone - and I am going to advise you as well, is to start with the end in mind. Think about 'What is my goal? What am I actually trying to achieve? And what is the best way to achieve that?'
So, what sort of income do you want to achieve when you finish? For me, that goal is $60,000 a year in passive income. That goal is enough to live off with me and my family, get by, have a pretty cushy lifestyle, and then I can work from there to try and improve that. But $60,000 a year is the goal. So, my question is what is your goal that you are trying to achieve? You say you cannot work this hard for the rest of your life.
But think about 'what is the goal I am trying to achieve? And is property or how can property help me get to that?' Because you run a business, you say your business is worth $1 million to $1.2 million depending on how much debt you have and depending on whether you can actually get the sale of that for your business after paying capital gains and stuff like that; that is a decent amount of money. So, you have to think, "Okay. Maybe my business could be the vehicle to get me to what I want."
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Some property improvements actually limit the number of potential buyers, thus lowering your chance of getting the best price possible.
There are some property improvements that people make that can actually limit the number of potential buyers and thus limit the chance of you getting a higher than average purchase price for your property. That's what I wanted to talk about in today's episode. Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property.
There's a lot of different people out there talking about how to improve your property, how to renovate your property, how to get the best sale price for your property. And so they should because little tweaks that you make here and there can really improve the value of your property and you want to be doing these things. However, there are some things that you may do to your property to try and improve it that actually limit the number of potential buyers.
Generally speaking, when you're selling your property, you want the maximum amount of potential buyers so that you can get a fast sale and so that you have people competing for your property and a better chance of getting a higher than average purchase price.
So I wanted to go through these things that may limit the number of people that are interested in your property. So you can think about them and then maybe avoid them when you're renovating or improving your property.
The first one is pools. If you're thinking of adding a pool because you think it's going to add value to your property, chances are, a pool isn't much – if any – value to your property. And in many cases, it can actually decrease the value of a property. Pools are expensive to put in. They're not cheap and when people go and visit house, if they really, really want a pool, a lot of people would be willing to purchase a house without a pool and put a pool in. But if people go and visit a house and they don't want a pool, then that is something that is going to deter them from purchasing your property because it seems very difficult for people to get rid of a pool. Not many people do it.
It's not regularly done. So if people see a pool and they don't actually want a pool, then it's likely to deter them. They also are going to be thinking about the maintenance they have to do, etc., etc. Unless you're in a very hot area where pools are very desirable, then this can be a limiting factor. So consult your local real estate agent around pools and whether or not you should put one in and how it's going to affect the value of your house.
I like to think of pools as a personal decision that you make if you want to live in a house with a pool and then you suffer the consequences on that if you then decide to sell. But if you're doing it as an investment, you're deciding to put in a pool, I would definitely think twice about that one.
The next thing that can limit the amount of potential buyers is high-maintenance gardens. Not everyone loves to garden. Me, for example, I absolutely hate to garden. I'll mow the lawn, but I probably won't enjoy doing it. And apart from that, I don't really spend my time gardening. So if you put in a high-maintenance garden that needs to be up kept in order to look good, that can turn off potential buyers because they get overwhelmed with the garden, how much it's going to take to up keep. And that can be really difficult.
Whereas people who are gardeners can go in, they can see a basic lawn or a basic garden that's really easy to maint...
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Here are 10 of the top ways to increase the value of your home. Everything from adding a room, to getting a better real estate agent.
Let's have a look at the top 10 ways to increase the value of your home. Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow properties. Active investors actually go ahead and they try and increase the value of their home or of their investment property above and beyond what the market is doing. So rather than just purchasing a property and hoping that it goes up in value over time, you can do things to your property to increase its value and that's what we're talking about today.
Now, I've called this "The Top 10 Ways to Increase the Value of Your Home", but this can apply to investment properties as well and it's not like you should do number 1 then do number 2. You need to assess which of these is best for your situation because given your property, given your circumstances, given your strategy, one maybe better for you than another. So let's go through, have a look at these and hopefully these will give you some ideas.
One of the top ways to increase the value of your home is to actually add a room to that home. Now, that could be adding a room within the existing structure just by changing the layout or it could be adding a room by doing some sort of extension on to the property. Adding a room can be a great way to add value to a property. If you can take a 2-bedroom house and make it a 3-bedroom house, then that's likely going to appeal to a broader set of the market and people are going to be willing to pay more for a 3-bedroom house than a 2-bedroom house. Same if you go from 3 to 4 bedrooms. Now, this can change depending on your area.
Whether or not you actually want to add a bedroom. Obviously, if you've got a 5-bedroom house and you're adding a 6th bedroom, that could actually not add as much value as you would think because there's less people that would want a 6-bedroom house compared to a 5-bedroom house in a lot of areas.So you need to assess your market and we'll talk through this, but understanding what the market wants and giving them what they want is really important when it comes to increasing the value of your house. So, first thing is adding a room. If you can do that within the existing floor plan, existing structure, then that is great. If not, then look at potentially doing an extension to add a room.
Number 2 would be a kitchen renovation. They say the kitchen is the heart of the home. One of the most important places for you to put on a show for anyone looking to purchase or rent your property. If you have a nice kitchen, then that can increase the value of your home. If you have a really bad kitchen, that can decrease the value of your home. So the kitchen is a very important spot and if you've got a poor kitchen, that is something I would definitely look at.
Number 3 is bathroom renovation. From what I've heard, this tend to be more expensive and can deliver less of a return on investment than a kitchen renovation, unless you're very smart with it. So, be careful here, but a good bathroom renovation can make a huge difference to a property.
I have been to so many properties and they've got these old, pink bathrooms and let's face it; in this day and age, who wants to live in a pink bathroom? That can easily be fixed through a minor renovation. Get some tile paint, paint over those pink tile or change the vanity in there at the same time. You could do a minor bathroom renovation to update it...
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What is land tax? Land tax is a tax you pay based on the value of your land in a given state.
Land tax is a tax that you pay based on the value of your land in any given state. Hey, I'm Ryan from onproperty.com.au and in this episode, I'm going to be talking about what is land tax and how does it affect you as an investor? Land tax is something that you need to be aware of as you accumulate more and more properties. Because it can become quite expensive if you don't prepare yourself for it properly.
So land tax, as I mentioned before, it's a tax that you pay based on the value of your land in any given state. Land tax is a tax that's generally a percentage of the value of land that you own that you need to pay every single year. It's charged in all states, except Northern Territory, and each state assesses land tax based on the value of land that you own within that state. So we're going to go through and explain land tax in a bit more detail. We're going to talk about some of the exemptions, how it's going to affect you as an investor, some ways that you can avoid it and then future potential changes to the land tax that are out there.
The first thing that you need to be aware of when it comes to land tax is that there's thresholds that you need to hit in any given state before you start getting charged land tax. Now, every state assesses and charges land tax differently. So, for example, in New South Wales, the threshold at the moment as I record this is $482,000. In Queensland, it's $600,000. In South Australia, it's $323,001 is how much the threshold is. So, each state varies in terms of its threshold, so you need to research each state individually or talk to your accountant about this stuff.
So what happens is basically, you don't pay land tax until the value of your land reaches that threshold. And once the value of your land reaches that threshold, you are then charged land tax. It's important to know that land tax isn't the value of your property as a whole. It's the value of the land that you own. So, for example, if you are a part of a unit complex, then you will only own a percentage of that land. So, only a percentage of the land’s value will count and the value of the unit itself won't count. If you own a house, it's only the land they're looking at, it's not the land plus the dwelling that's on the land, so that's very important.
When it comes to assessing land value, it's done by the government or by parties that the government hire to do it. So, for example, in Queensland, the assessment is done by the Department of Natural Resources and Mines. Basically, from what I can gather, the government does the assessments or pay someone to do the assessments for them. They then tell you how much your land is worth and your land tax calculations are done on top of that. There are ways that you can dispute it and try and get it changed if you need to. So, the assessment, it's not based on what you purchase your property for, what the real estate agent says it's worth, but it's what the government says the land is worth – that's a very important thing to note.
Also, there are a lot of different exceptions as well to paying land tax. For example, in most – if not all – cases, your principal place of residence is exempt from the land tax payment and from the threshold, so it doesn't add to the value of the land that accumulates towards paying land taxes. There’s a whole bunch of different other exemptions based on the type of land – whether it's commercial or personal, etcetera,
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What property investment strategy would you use if you could purchase property with cash you obtain through inheritance?
Hey and welcome back to What Would Ryan Do? The series where you pose a question at me and I tell you what I think about it. What I would potentially do in the situation. Today's episode, we're going to be talking about what strategy is best – or what would I choose – if you're buying properties in cash. Let's read over the question and then we'll go through it. Remember, What Would Ryan Do? It's a bit of fun, it's a way to get someone else's perspective on your situation.
I tend to think a bit outside the box, outside what normal people think. So, hopefully, my perspective can help you, but it's definitely not financial or mortgage advise. So always seek professional advise that is my #disclaimer.
Alright, here is the question:
"I was wondering what strategy you would use if you had the opportunity to buy a property outright with cash. (e.g. received an inheritance)."
This is an absolutely great question and what a good position to be in. Obviously, my condolences for whoever has passed away that you've received this inheritance from. That is definitely not fun, but being in a position where you have a lot of cash gives you a lot of different options to choose from. Now, depending on whether you're working or not can depend on whether you want to take that cash, borrow some money as well and spread that as far and wide as you can. Or, maybe, you just want to invest with this cash and you don't want to acquire any debt.
Let's talk about those 2 different scenarios and what I would do in each scenario. Remember, we're talking about me. I'm not giving you financial advise, but hopefully, through talking about this, it can give you some ideas for your situation.
So. The first thing that I always go to, no matter what the question is, about whatever investment strategy or whatever situation is, is what is your end goal? What are you trying to achieve in the end and how can you get there? So rather than saying, "I have $500,000 cash." or "$1 million cash." or however much cash you have, “Should I buy X property or Y property? Should I use this strategy or that strategy?” Rather than saying that, you need to rephrase the question. This question is probably not the best question to ask. The best question to ask is, "I have this amount of money. I have this goal.
What is the best strategy to get me towards this goal?" So, having your own goal is very important. So that might be a passive income of $60,000 a year. Maybe a passive income of $100,000 a year. Maybe $30,000 a year. Maybe you just don't want to lose any money and you want to park that money and keep it safe. It's really up to you. It depends on your situation and what you're trying to achieve.
Most people that I speak to would love, love, love, love to replace their income. And I think that is a great goal. A lot of people want to far exceed their income, which is achievable, but just unrealistic for a lot of people. So if you're earning $50,000 a year and your goal is to earn $1 million a year in passive income, you might want to start with a goal of just replacing your initial income first and then work from there.
So, step number 1 is work out your goal. So, for me, goal income for me is about $60,000 a year in passive income. I can survive off that. My family can survive off that. We can live a fairly happy life and not have to worry about money. Now, once I got that,
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Today we talk to Ronald Tan about his investment journey. From his early successes, to being swindled by a developer to investing again and doing it right this time around.
One of my absolute favourite things to do when running On Property is to talk to my listeners, talk to my readers about their investment journey. To hear about the successes, to hear about the failures that they've been on. Today, I have for you a really exciting investor profile with an investor named Ronald Tan.
Ronald has been through so many different things over his investment career, which has spanned I think it was something over 20 years. He's had great success in his early purchases to being swindles by property marketers offering him overseas property.
He's had some great successes, some great failures and then come back and had some successes again. So it's really great to hear this story with Ronald and I think it's going to inspire a lot of you. Now, please note that there was a bit of lag between the conversation over Skype so sometimes we do interrupt each other a little bit or if there's longer than average pauses, that's just because of the delay in terms of the signal going through. A really great interview. Thank you so much, Ronald, for coming on and sharing your story and I hope that this inspires you guys.
Ryan: Hey Ronald, thanks so much for coming on today. Let's go back to the beginning your investment journey. When did you first invest in property and what made you decide to invest in property in the beginning?
Ronald: Okay. I guess this started off probably a few decades ago when I was a lot younger and I noticed a lot of my uncles – I come from Singapore – they were going through a period of exponential property growth. Probably fueled by speculation and I guess in those days when the overall property market sort of increases, it's benefit those people who enter the job market earlier, obviously. In those days, everybody is saying, "Oh, you should buy property because property always makes you money."
Ryan: It doesn't sound too different from today, really.
Ronald: Yeah, yeah, it is. For the un-initiated, I guess. So that's how I first went into property. The first investment property that I bought apart from my own home was basically with the intention to just rent it out, but at least in those countries, it is still more or less positive cash flow, so it's not too bad.
Ryan: So was your investment property in Singapore?
Ronald: Yes, it is.
Ryan: Okay. And do you still own those properties today or have you sold out and you're now in Australian market?
Ronald: No. I sold that out a long time ago. In fact, slightly 2 years after I acquired it. I think I bought it at $325,000 and sold it 2 years later for $520,000 or something like that.
Ryan: That's pretty good.
Ronald: Yeah, that's pretty good. And then, I made the next mistake after that.
Ryan: Okay, so you had a very successful first one. And then, you said you made a mistake on your second one. What happened there?
Ronald: Well, I guess, because at that time, my ex is the sort of person that likes to spend money. So if I have the proceeds of the fist property, I thought I better buy something else before it gets spent. At that time, I have intention of probably in the future of migrating so I happened to go to one of those exhibitions where the marketers was presenting foreign properties for sale. And then I bought one of the plan there. Obviously, the price was highly inflated.
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Budgetting doesn't come naturally to most of us. For those of you who struggle (like me) here are some tips on budgetting that have helped me.
Budgeting your spending can be really hard. It's not something that comes naturally to most of us. And so, I wanted to give you some tips on budgeting your spending. These things have worked for me and they may or may not work for you. Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property.
One of the things that people tell me that consistently holds them back from investing in property is they don't have the ability to save a deposit or they don't have a big enough deposit and they're in that process. Budgeting and saving a deposit can be really hard. So that's why I wanted to create this episode to just give you guys an idea of how we do it, which is far from perfect, but it may suit you.
The reason that i wanted to share this is because a lot of people out there will lay out one particular way of budgeting and say that, "this is the best way to do it". Most of the time, it's you set your weekly budget or monthly budget or whatever it is. You section it off into little portions so you've got $20 for entertainment. You've got $10 for coffee. You know, you've got $50 for groceries, whatever it may be. $50 for grocery is not much when you have 3 children, you tell me.
Especially one who's gluten and dairy-free and you have to spend $9 on a loaf of bread to buy nice gluten-free bread. Anyway, most of them just teach that and say that that's the way to do it. Me and my wife tried that. We even tried putting cash in separate envelopes for each individual thing, like entertainment, coffee, etcetera, and it was just so painful to deal with. It just didn't suit us at all. So we found something that suits us and I through it'll be helpful to share these with you.
First thing I'd like to say is that if you're trying to save a deposit or if you're trying to pay off debt, I do believe that there is great value in doing that first. So when you get paid, whether it be weekly, fortnightly, monthly, whatever it is, take a portion of your money first and put it towards savings or take a portion of your money first and put it towards paying off debt before you start living out the week, before you start spending money. And then, once you've done that – so you've saved or you've paid off debt – it's then your goal and your task to try and live off the rest or to try and make more money so you can afford to live off the rest.
So that is an option, to actually try and make more money so that you can afford to live more comfortably even though you're saving. So this is something that we consistently do – is that every week, when we get paid, some money goes aside towards savings and things like that and then we have to live off the rest.
So let me just start with that. So, the thing that we have found was helpful for us is basically, the first step we did was to calculate all our regular monthly expenses. So, we've got things that we have to pay every week, like rent for our house. We've got things like our phone bills, internet, insurances, all of that sort of stuff. We pay that stuff monthly. So, basically, we calculated how much we had to pay monthly in terms of those bills. And we then worked out, "Okay, how much do we have left over that we want to spend each week?"
So we earn X amount, we've got these monthly expenses, and then it's kind of a balancing act for us between how much do we want to save or use to reduce debt ver...
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What is the best accounting program for the DIY property investor. Let me share the best program, how I use it and some pro tips for managing property finances.
What are the best accounting programs for the DIY property investor? Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow properties. One of the really important things that you need to do when you're investing in property, when you own properties is you need to actually manage the finances of those properties. So you need to keep track of income coming in.
You need to keep track of expenses going out. And you need to collate those at the end of the year and give them to your accountant so they can go ahead and do your tax return. So what are some of the best accounting programs out there for the DIY investor? Now, I'm going to show you the program that I recommend, which you can all have access to really easily. But before I do, I want to give you a pro tip that I got from Ben the buyer's agent.
Ben from Pumped on Property, who recommended – and he does this himself – is that he gets the rental mangers to do a lot of his financial stuff for him. So, obviously, he collect the rents, but he also gets them to pay his insurances, gets them to pay the council rates, the water rates, all of that sort of stuff as well. He works very closely with the real estate agents in order to get them to manage most of his finances for him.
I haven't specifically asked him, but I imagine a portion of that would be collating and sharing the receipts and stuff with him so that would be really easy to keep track of that sort of stuff. So, definitely a pro tip, is to go out there and to ask your rental manger if they can go ahead and manage this sort of stuff for you. Ben has said that of all the people that he's asked, no one's ever said "no" to him. So, it's definitely something that you should explore.
Now, the first program that I'm going to recommend and I will recommend a couple, is a program that we all know and only a few of us love. And that is called Excel. Here, I'm using Google Sheets, which I think is way better than Excel because it's just simpler, it's free, it exists online so you can access it from any computer and it just works.
What I've got here is an example spreadsheet that has every day in the year. Now, this one is a bit old. I think it's from the financial year 2015-16. So I just took my old business one and basically cleared it of its data. Probably should have taken from 2016-17, but regardless, the process is still the same. Actually, I can just go ahead and change this date. Let's make this the 1st of July 2016 and that's going to update all the dates. So now it is correct.
Alright. So, basically, what I have here is every single day of the year goes along the spreadsheet. This makes it quite a large spreadsheet, but that's fine because we're just looking at the days. When I have income come in, so let's say I have rent come in on Wednesdays, that's $350. I can go ahead and put that in. On the next Wednesday, I could again go $350 and I can do that for my rents.
What I would ideally do, you could call this "Property 1" or you could have one of these sheets for each individual property. So you've got every day of the week, but then you've also got an annual summary here, which is what you're going to provide your accountant – what your accountant is going to be most interested in. So you could do "Property 1", "Property 2". If I was doing it,
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Would I buy a positively geared property in New Zealand or a negatively geared property in Brisbane that needed to be subdivided into 3 townhouses to be positive cash flow? WWRD?
Hey and welcome to another episode of What Would Ryan Do, the series where you ask me questions and I give you my perspective and what I would do in this situation. This is not to be considered financial or mortgage advice, just so you know. It is just a little bit of fun. So the question today revolves around whether or not I would purchase positive property in New Zealand or negative property in Brisbane but there are some caveats to it. So let us go ahead and have a look at the question today.
Would you buy a property in a smaller city in New Zealand with a 10% yield or a negatively geared property in Brisbane that needs to be subdivided into 3 townhouses to be positively geared?
The answer to this one for me is very simple. I would actually probably purchase the one in New Zealand. Let me give my reasoning behind it, and I am not saying you should do this because it all depends on the person.
Now, if I was to go ahead and purchase a property in Brisbane that needs to be subdivided into 3 townhouses, what I am guessing you are saying is that you are either buying a block of land or you are buying a house that you are going to demolish. You are then going to subdivide and build 3 townhouses. First of all, I have never done a subdivision.
I have never done a demolishment. I have never got approved, I have never built 3 townhouses, and I have never even built a house or worked with a builder to build a house. So, all of that just sound too difficult. Would I purchase property in Brisbane that was positively geared or that I could turn into a positively geared property easier than that, yes I would. I do not understand the whole concept around your need to subdivide it into 3 townhouses in order to achieve your positive gearing. Whereas you are talking about a smaller city in New Zealand with a 10% yield, that is looking more attractive to me.
Firstly, let me just say I would need to research the New Zealand market, which I have not done at all, not at all, I have not looked into that market. I do not know how it differs from Australia. I do not know what it is like at all. I am not sure what you mean by smaller city. I am guessing you do not mean Oakland or the large hubs - what is there? There is Oakland. There is Queenstown. There is Christchurch.
There is one that my cousin lives in that I should know where it is, Wellington. Okay, I’m guessing you are not meaning one of them. You are kind of meaning a smaller regional center. I recently went to New Zealand and I absolutely love the place. And so if I have an excuse to go to New Zealand to research the property market over there and to look into that and purchase it, would I consider it? Absolutely!
You also need to take into account when investing in New Zealand, things to do with currency. Or if I am going to be living in Australia, how is the New Zealand currency going to change, how is the Australian currency going to change? Because if I invest in New Zealand and the New Zealand dollar outperforms the Australian dollar, then that is great.
I am making money on currency. But my property could do really well but the New Zealand currency is dropping below the Australian currency and then my property is becoming less and less in terms of Australian dollars. So that is also something that you need to take into acco...
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In today's episode economist Steve Keen explains why Australia is in a property bubble and what you can do about it.
Is there currently an Australian property bubble? Some experts say that there is and that prices in property could fall by as much as 40% or more. While other experts say that we aren't. Today, I have with me an expert in the Australian property bubble, an economist, Steve Keen, who understands this issue like nobody else.
I was really excited to get him on and to understand why he believes that we are in a property bubble in Australia, to talk through some of the statistics and to also really get an idea of is this bubble likely to pop in the near future and what can we do about it as investors. I'm really excited to have this interview today on whether or not Australia is experiencing a property bubble and what we can do about it.
I do want to apologize ahead of time for the quality of the recording. The internet at my house wasn't performing very well when we did this and we're talking to each other on the opposite sides of the world. Unfortunately, there are some areas where the audio cuts out or it's not too strong and the video can be quite pixelated. So just beware of that, I do apologize for that, but there wasn't much I could do. But this definitely an interview worth watching.
Steve: Okay. Let's see if it works with me calling you.
Ryan: Okay, cool.
Steve: Share screen. Start. Let's see.
Ryan: Alright it's just loading.
Steve: Yeah.
Ryan: Okay. Yup, I can see it.
Steve: Okay. That particular graph is what I'm calling a smoking gun of credit. So the red line is GDP. The blue line is GDP plus change in debt, which is basically credit – plus credit. And the black line is credit graphed on the right hand side. Okay. Whenever the blue line's above the red line, credit is adding to demand. When it's below the red line, because people are paying off debt more than they're taking on new debt, credit's reducing demand – credit's negative.
Ryan: Which basically never happens on this graph.
Steve: Well, it never happened in Australia so let's take a look at the American, just give me a sec to get to the right part of it. Right chart here. This is all charts for a book I'm writing right now on the topic. I've got to change that. That's the UK. Where's the USA? This will give you just as Australian in private debt. This is when I started calling the crisis to understand why. So the dotted line's the exponential fit to the Australian data and the American data in ratio of private debt to GDP.
Ryan: Okay.
Steve: See the trends? Okay.
Ryan: Yes.
Steve: So exponential increase ratio of debt to GDP. It's not the actual level. So here's the chart from America. Same when I showed you for Australia a minute ago.
Ryan: Okay.
Steve: Where you have the GFC maximum boosted demand coming out of credit being positive and then it plunges. And for quite some time, it's negative, so it's taking demand out of the economy. So we side stepped that. Australia's went down to here and bounced up again. And that was because of the impact of the first homeowner's scheme. These people dived in and took on mortgages.
Ryan: Yup. I remember that time.
Steve: And they fall. The trend for this to go negative. Yeah. And then the second time, around 2012 when, again, we started having a decline in mortgage debt growth. That's when people started borrowing for all the investment projects in mining.
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How do you find investment properties that are under market value but are also in a good area?
"I would much rather pay full market price, give the vendor what they are asking and so get a foot in the door of a great market rather than get a bargain and then just see that walk out by third of price falls over the next 12 months or whatever."
A lot of investors are talking about buying property under market value, but how do you buy property under market value that is also in a good area?
Hey! I am Ryan from OnProperty.com.au, helping you find positive cash flow property, and I want to start out this video a little bit different to how I start out every other video which is just an introduction that lead into the answer and to actually help you to question yourself and to say, "Should I actually be looking for properties under market value or should I be taking a different approach to this?" So, I am going to play a short clip for you, of an interview that I did with Jeremy Sheppard from DSRData.com.au.
Now, DSRData is an awesome research tool where you can see the demand for an area, and that can help you assess whether or not an area is a good area to invest in. So I will play this clip where we talk about this under--market-value idea, and whether or not people should be approaching it, and then I will come back after a couple of minutes and I will talk about 'Okay, if you still want to go ahead and do it, how can you find properties that are under market value in good areas.'
Jeremy: So, I would much rather pay full market price, give the vendor what they are asking; so I have a foot in the door of a great market rather than get a bargain and just see that walk out by third of price falls over the next 12 months or whatever.
Ryan: I think that is good for people to get out of their mind that because a lot of people do teach the best way to invest is to buy below market value so you can get instant equity in an area and look, I am sure there are ways to do that. But it just sounds so much easier to identify good markets, markets that are solid, that are likely to grow, get in there at market value, and see the market rise. And if you really want to create equity then you can do things like renovation or create opportunities within that property yourself.
Jeremy: Yeah. That whole instant equity thing, if your strategy is entirely based on buying below market value, then why would you hang on to a property once you have boarded? Your strategy has now come to its fruition. You have bought below market value, so why is there not a discount flip? You know, there is a renovation flip; you buy, renovate, sell. There is no such thing as a discount flip because as soon as you have settled on that property, it is new value -- whatever you paid for it, and that is what other buyers are looking at. This is now the new benchmark. So, if you can and if ever you buy in that area, you can get a bargain, the prices are heading down.
They are not heading up and I remember seeing one property educator complaining about Sydney prices this last year and they are saying that people are paying too much; too much being above valuation. But unless people buy above valuation, capital growth does not take place. It has to be someone forking out a little bit more money and then you have a new benchmark which becomes the standard, and people continue to buy above market value. That is the only way capital growth happens.
So,
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What would Ryan do? How would he get his deposit money back whilst maximising tax deductions?
Hey guys and welcome to another episode of WWRD or What Would Ryan Do, the segment of On Property where you send in your questions and I give you my opinion about what I would do if it was me in your situation; and I try and leave you with some thoughts that you can think about yourself.
We are not taking ourselves too seriously here, but we are trying to help you guys to assess your situation and get some outside thought on it because sometimes you are so deep in the jungle, you cannot see the forest for the trees because you are just looking at your own situation. It can really help to get an outsider's perspective. We also like to have a little fun here, as you can see by the photo; if you have any questions that you want answered, you can submit them. Just email me, Ryan@OnProperty.com.au.
So the question today comes from Vicki who asked, "How do you structure a loan when you want to buy an investment property to maximize tax deductions when you do eventually buy your own first place?"
The thought process here is Vicki is going out, she is investing in property while she is renting - so she is rentvesting, as some people like to call it. And basically, she wants to use her money wisely so when she does buy her own place, she gets the maximum tax deductions on her property portfolio. So she is using an example: if I buy an investment property for - let us say $100,000, I would need $10,000 deposit and $5,000 closing cost. How do I get that $15,000 back with tax deductions?
The ATO will not let me refinance and take $15,000 out and claim the interest on the $15,000 as a deduction. I have to have an initial loan balance of $105,000 and they have not reduced the balance of the loan at all. How can I do this?
Well, let me first say, this is WWRD. This is What Would Ryan do; this is not what a mortgage broker do or what would an accountant do because I am neither of those things, so this is my disclaimer that I cannot give taxation advice or mortgage advice. However, I will talk about this a bit and some things. If it was me in the situation, what are some things that I would consider and what would I do?
And so we have a $100,000 property, we are putting in $15,000 of our own money. We are talking small figure, which is probably unrealistic for most people, so let us bump it up a bit to make it more understandable for people. Let us say I am investing in a house, an investment property for $400,000, and I am putting down a 10% deposit of $40,000 plus let us call it a $10,000 closing cost. So I am putting in $50,000 into this $400,000 property. How can I get that $50,000 back and get tax deductions for it as well?
Now, this is a big ass because you are actually saying, "How do I get my own money back from my investments and how do I also get tax deductions for my money?" It is kind of the equivalent of saying, "Okay, I have $50,000 in the bank. How can I get tax deductions and tax benefits for having $50,000 in cash and for earning money on that $50,000?" It is just not really the way that tax system works. The tax system is there to like, if you are making a loss, if you have legitimate expenses against your property, you can claim them against the income.
It is not there to create these tax deductions from money that you have yourself. So, even though we are not saying, "How do I take my money and get a tax deduction on it," that is effectively what we are trying to say becaus...
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Selling your property yourself can save you thousands in agent commissions. Here's how to sell your property without a real estate agent.
There are a lot of people who sell their properties every single year without the use of a real estate agent and thus saving themselves quite a large commission.
Today I have with me Daniel Baxter from YourHotProperty.com.au. He helps people sell their properties without a real estate agent and he is going to talk us through the pros and cons of doing that as well as the process on how to sell your property without a real estate agent.
Ryan: So hey Daniel, thanks for coming on today!
Daniel: Hey Ryan, thanks for having me. I am really excited to be here today.
Ryan: So, let us talk first about why would people consider selling their property without the use of a real estate agent. Most people will sell their properties through a real estate agent, what is the benefit of selling your property without a real estate agent?
Daniel: Well, the biggest benefit - I guess the reason why we have, it is not just I guess, managers that have come to us. We have investors, we have developers; I guess what we do and how we can help people can really work with anybody. So, the big one is obviously the commission savings. Agents, the way that they are charging people, obviously, the fees are huge. Property prices are increasing, obviously, so did these fees. And the truth is most of them are doing less than what they did years ago but they are still charging the same or if not more.
Ryan: And so what are the general fees that a real estate agent will charge someone to sell their property?
Daniel: Well, it definitely varies throughout Australia. I mean the average probably, say in the metro area, is about 2%. But when we start moving out to rural areas and things like that, I have had clients with agents quoting anything up to 4.8% of the property price.
Ryan: Okay. So 2% of a $500,000 property is $10,000. Is that right?
Daniel: Yes.
Ryan: And then a lot of agents as well will charge on top of that for advertising fees so you will be up for hundreds of dollars to list your property online, hundreds of dollars for a sign, hundreds of dollars for professional photos and stuff as well so you are kind of looking at an extra $1,000 or $2,000 or something in a lot of cases for advertising. Is that right?
Daniel: Yes, easily. It is probably at least $2,000 to $3,000 most agents will put together for their marketing packages that they will suggest to people. But if you are looking at an auction campaign, a lot of agents love to talk everybody into an auction campaign. Some properties definitely suit that, a lot of them do not, but it tends to pay advertising so agents love it and a marketing campaign that can run anywhere between $4,000 to $10,000, easily.
Ryan: Oh wow. I did not realize auctions were so much more expensive than just selling your property regularly.
Daniel: Yeah. It is a very aggressive marketing campaign and they like to use a lot of print. As soon as you use print, obviously the marketing costs just skyrocket.
Ryan: Yeah, and what is print media these days...
Daniel: Well, to be honest I am really not a fan and I am happy to say that. Look, the statistics these days suggest that about 90% of buyers generated for property are coming online, so it does not really make sense to spend what might probably be $10,000 on print media what you might call paper magazines or your domain magazines and things ...
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Are you interested in buying property through vendor finance? Here's some tips on how to do it.
How do you buy property through vendor finance?
Hey! I am Ryan from OnProperty.com.au, helping you find positive cash flow property and one of my readers, Gordon, has asked me to explain how you go about buying property through vendor finance. So I wanted to talk about this a little bit. I have made a whole bunch of offers on properties through vendor finance. Some have been accepted. Most have been declined. I have never actually gone through with it and purchased a property through vendor finance, but I know a little bit about how to go about doing it.
Firstly, let me just touch on what vendor finance is if you do not know what we are talking about. So vendor finance is when you purchase a property - so a buyer purchases a property from the seller, but rather than the buyer going out and getting a bank loan and coming back and giving the seller a bulk amount of money for the property, or the bank giving the seller a bulk amount of money for the property; the buyer actually goes to the seller and says, "Hey look, I can give you a deposit for this property and I want you to loan me the rest." So basically, the buyer creates a loan with the seller or vice versa.
They create a loan together. And so the buyer then needs to repay the seller just like they would repay a lender, so there are interest repayments on the vendor finance and generally in the future, there could potentially be a lump sum payoff if you can go and get a bank loan from a traditional lender. So that is what vendor financing is. Rather than the buyer going out and getting financing from the bank, the buyer gets the financing from the seller and pays them back over time.
This benefits the seller because generally they get a higher than average purchase price for their property or sale price for their property and they can charge a higher-then-average interest rate, meaning it is going to generate positive cash flow for them. It can benefit the buyer because it means you can get into the market where otherwise you may not be able to get a loan from a bank; so you can get into the market earlier. But you are likely going to pay more and need to pay a higher-than-average interest rate.
So let us say that despite the cons of purchasing a property with vendor finance being a higher purchase price and a higher-than-average interest rates, you still want to go ahead and you are still in exploring this option of potentially purchasing a property through vendor finance. How do you go about doing this?
Well, it is very difficult - I dare say impossible, to find a property online that is selling through vendor finance. I am just going to go online right now and have quick look. The best website to search this stuff from is called MyRealEstate.com.au. So let us go ahead and we are going to go to MyRealEstate.ocm.au. Now this is like the Google of real estate if you will, and you can put in search terms like vendor financing, owner financing, seller finance, all of these sorts of things, to search for property.
So let us just start by searching vendor finance. So that is now going to bring up a bunch of different properties here. We can see some land that is available. We can see a house here in Katherine in the Northern Territory. You can see that most of these houses are not spectacular, are not super exciting, and there is no guarantee that any of these will actually offer vendor finance. But if I go into it,
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How should first time investors get started? Should they save a deposit, use vendor financing, do a joint venture or something entirely different?
How should first-time investors get started in the property market? Should they save their own deposit? Go to the vendor finance route? Go into a joint venture? Or use some other strategy?
Hey! I am Ryan from OnProperty.com.au, helping you find positive cash flow property and this question was asked by Gordon. Thank you Gordon for sending in your question. If you want to have your question answered, just email it to Ryan@OnProperty.com.au.
So when you are a first-time investor, it could be very difficult to get into the market. It could be extremely expensive to get into the market and you feel like you are trying to save, but it just takes forever to get there and you are not making any progress. So, is there a better way than saving your deposit? Should you look at joint venture? Should you look at vendor finance, etcetera? Or should you just stick with the staple approach of saving your deposit? I cannot answer the question for you, but I can give you some pros and cons and things to think about with each of them.
The most common way to get into the market is obviously saving your deposit yourself. This can be difficult. Saving a deposit even if it is 5% plus cost, or maybe 10% of the purchase price; if you are purchasing a $300,000 property, that is $30,000. A $500,000 property, that is $50,000. That is a lot of money to save. In some cases, that might be a year or more worth of your wage, which can be extremely difficult to do.
So, the negative with saving your deposit is obviously that it can take a great deal of time. It involves an extreme amount of discipline to not go out there and not buy the latest iPhone, or not buy a car on a loan, or not purchase the latest thing that you want to purchase. It takes an extreme amount of discipline to be able to do that. A large portion of my audience that does have that discipline, but I am sure there are some of you out there who just really struggle with that, and that may be unachievable for you. So, the negative of it is it can take a lot of time to do. The positive of that is you then have full control.
You can purchase a property yourself in your own name or in a trust if you decide to go down that route; but you have the deposit. You are investing it for yourself. This gives you full control over your decisions: what suburbs you want to invest in, what type of property, how much money do you want to spend, are you going to do a renovation, what are you going to put the profits towards, etcetera, etcetera.
So, when you purchase a property it means you get full control over it. You are the decision-maker. You can make whatever decision you want. That is a huge benefit to it. It can be beneficial going into yourself rather than going in something like a joint venture when it comes to buying property number 2 and 3 and things like that because the banks will look at the entire loan against your income. So, it can negatively affect lending in the future if you do a joint venture.
Saving a deposit is probably ideal in most situations if you can actually go about and save the deposit. Hopefully after then you can do something to that property to improve it, to increase the equity on that property, and then maybe in the future you may be able to borrow against the equity to go again because it can be difficult to save a deposit over and over.
So,
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What would Ryan do? Would he keep properties after a development or would he sell them off for a lump sum?
Hey guys! Ryan here from OnProperty.com.au, helping you find positive cash flow property.
This is a new segment, new sort of episode, that I am starting, that I am going to run on weekends as I have questions for you guys. I am calling it WWRD or What Would Ryan Do. So if you send in your questions about your situation or your "friend" who has this situation and you want to think of, "Well, if Ryan was in this situation, what would he do," then you can send it in. That is what WWRD is, which I will be doing on weekends. This is going to be, as you can see from the picture you are watching on YouTube, it is just going to be a bit of fun. Do not take this too seriously. This is not going to be personal advice though I will try and help you out. Obviously I will be talking about some things that I would do.
I will probably be asking you some questions, giving you some things to think about rather than saying here is exactly what you should do. So we will talk about what would I do for my situation, and then we will talk about some things that you can think about because you are not me. You are not in your 20s with 3 kids, quit a 6 figure job to go and work for himself. I am a very unique fellow. I am also a vegan and homeschool my child. You are probably not the same as me, but we will still find out what will Ryan do, WWRD.
If you want to send me some of your questions, you can do that. Just email me on Ryan@OnProperty.com.au, that is the easiest way to submit your questions. And just put in the subject line WWRD and I will know that it is for this segment.
Today's topic is a question from an audience member, whether they should keep or sell their properties after development. And so the way we are going through this is we are going to read through the email from them, and then I am going to go in and give my thoughts and stuff like that. You may need to bear with me as I do some maths as some of these questions do get quite specific. So, here is our question from Duval, and Duval, thanks for sending this in. I am just going to grab my notepad because I am guessing there is going to be some mass here.
"Hey, Ryan! I have a question that you may think it is a question for my accountant or for myself. But I want to know, if you are in the situation, what would you do?"
And Duval, just so you know, you inspired WWRD. This segment will not exist if it was not for you, so thank you very much!
"I bought my principal place of residence in 2012 for $715,000. Let us go ahead and write that down, including stamp duty, which is a townhouse and probably worth $1 million today. I have also bought a house diagonally opposite for $740,000 with land on it, rent for $450 a week." That seems like terrible rent for something that you are paying $740,000 for, I do not know why the rent is so low on that. Maybe it is in Sydney. I do not know where this is, but that is very low yield for a property.
Anyway, rent for $450 a week. They have subdivided it, cut the existing house; built another townhouse at the back which will cost around $280,000 for the whole process including the DA. So it is subdivided and it is built, $280,000 in total. "If I sell a brand new townhouse, so this is the one at the back, the subdivision cost $280,000; then I would get around $750,000 to $800,000 for it." So let us call that $750,000 if you sold it.
"I have 4 options now.
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When buying a property it is important to look at comparable property sales to get an idea of the market value. Here's how to do it.
In this video, I'm going to show you how to find comparable property sales for the area. So when you are looking at investing in property, it's very important that you assess the property that you're looking at buying compared to properties that have recently sold in the area. This will give you a good idea and a good indication of what the property is really worth and will help stop you from overpaying for the property.
So let's go ahead and find a property to look at. Here I am at myrealestate.com.au, which is my absolute favourite search engine for properties. Let's go ahead and type in a search request, "units in Cronulla under $700k". We'll look for some of those units in Cronulla under $700,000 and we can see that there's a property here, 7/21 Wilbar Avenue for $555,000+. We can see one Croydon Street for $635,000. Let's go ahead, we'll have a look at that one.
We can see that it's 5/2 Croydon Street. We can see that this one has actually already sold. So let's go ahead and we'll find a different one. I want to make sure that it's on the market. We can see most of these are $680,000+. They've got really wide guidelines. Sorry about that dog barking in the background. Here we have $565,000 for one in Bando Road. So let's go ahead and have a look at that. We can see the details about this property.
Now, this is for $565,000. It is a 1-bedroom, 1-bathroom, 1-car spot property. I can go through, I can have a look at the pictures. Hopefully they've got a floor plan as well. They don't. That would be something that I would probably want to look at or want to get. But we can look at this property. Now, we want to find some more details about recently sold property. So, we can see on the side here, people also viewed these properties so we can go ahead and look at them, but they are ones that are listed for sale at the moment.
We want to find ones that have previously sold. To do that, we're going to go at the top and click on this sold icon here in the menu bar. That's going to bring us to the sold page. We then input our suburb, which is "Cronulla". And now, this is important; we want to choose the same property type that we are already looking at. In this case, it's an apartment and unit that has 1 bedroom, okay. I'm just going to leave the min and max price empty for the moment. So we're in the same property type, same number of bedrooms. We can go ahead and click Search.
Now, this has brought up 666 total results, but it's going to sort it by most relevant for you and you can see what they sold for. So we can see here that a 1-bedroom, 1-bathroom sold for $476,000. We can see one in Croydon Street was sold for $550,000. We can see one was sold for $587,000. One was sold for $440,000. And you can see the dates that these were sold – 27th of February 2016. We can see one in Burke Road sold for $611,000. That, again, is a 1-bedroom. Another one in Croydon Street.
So you can go through and you can look at all of these to see what has been sold in the area. If you want to get really specific, go ahead and click on the map and find your property in the map. We're on Bando Road in Cronulla, which is North Cronulla here, just West of Elouera Road. So we can see it's all around here where it says number 11. So we can zoom in there. There's Elouera Road. Here's Bando Road where we were looking. Okay, we can see that 1-bed, 1-bath was sold for $470,
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Lists about suburb hotspots put out by magazines and websites tend to outperform the general market, however there are some problems with suburb hotspot lists that you need to be aware of.
A lot of people love the property hotspots that the magazines and the websites put out there each and every year to say, "Here are the hotspots for 2016 that you should invest in." "Here is a list of areas most likely to grow." But there are some problems with these suburb hotspot list that I wanted to talk about and make you aware of.
The first problem is that you can only actually invest in one suburb. And so, while this list tend to outperform the general market in Australia, there are going to be suburbs in this list that will under-perform and there'll be some suburbs that will extremely over-perform to make up for the under-performing suburbs. So the problem is, as an investor, you can only invest in one property in one suburb. So even though these lists give you a better chance of achieving success, investing in one of these properties in the list isn't a guarantee of success.
So you should never just stop at the hotspot list, you should always do more research so you can hopefully find that suburb within the hotspot list that's going to outperform all the others. So, that is a problem that you can invest in one suburb, not all of them, and so there's no guarantee there.
The second problem is that you don't necessarily understand how they chose each area. Often, they use different criteria to choose each area, depending on the report that you are looking at. It will affect what areas they choose and how they choose those areas. If you're going from Residex and choosing one of their reports versus one of the reports in API Magazine versus a report in Your Investment Property Magazine versus a report on dsrdata.com.au. All of these different reports use all different criteria in order to estimate their hotspots.
Now, this isn't a bad thing. Often, they'll talk to market experts or they'll get certain data to make these predictions, but if you don't understand how they chose each area, how are you going to have the confidence to choose which suburb to invest in? How are you going to have the confidence to know that, "Yes, this suburb that I'm choosing that is in the hotspot list actually has the criteria required in order to grow." How do you know that? And how can you have the confidence if you don't understand how and why they chose each area?
So this is one of the major limitations of hotspots and one of the major limitations of recommending areas for people to invest in in the first place. If you don't explain to those people how you got your prediction, how you got your data, then they will receive the information, but they probably won't do anything with it because they don't have the confidence. So, if you are one of those people looking at hotspots, then try and understand how they chose each area. What information they used and what it means. So when it does go time to invest for you, you can invest with confidence.
The third problem with hotspot list is that the areas may not fit your investment goals. It's great news that some suburb in Sydney is a hotspot, but if studio apartments are starting at $1 Million and you've got $60,000 for a deposit, well, that's not really going to be a feasible investment for you. If you can only borrow $300,000 from the bank, you're not going to be able to invest in this hotspot. Or maybe you have goals of passive income,
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In this episode I will show you exactly how to find the auction clearance rates of an area.
In this video, I'm going to show you how to find auction clearance rates for an area. Auction clearance rates can be extremely valuable in understanding how many properties that actually go to auction end up clearing and selling at auction. This can give you a great idea of demand in the area, as well as how you should negotiate.
In order to find the auction clearance rates for an area, you need to go to a website called dsrdata.com.au and you can create a free account by clicking on the Join button in the top right-hand corner. Once you've joined, go ahead and login. Once you've logged in, under the suburb analyzer section, which should load automatically, go ahead and enter your suburb. The only thing you need to be aware of is you need to choose either houses or units for the suburb.
If you're serious about investing in the suburb and you're not sure whether you want houses or units, just go through and do this task twice so that you can get auction clearance rates for both houses and units. I'm going to go ahead and enter an area. In this case, I'm going to choose Cronulla, which is in Southeast Sydney and I'll choose units because the area is mostly units.
If we scroll down, we will see here auction clearance rate (ACR) of 75.5%. We can also go to this context ruler, click on that, and we can see how this compares to the rest of Australia. We can see the median for Australia is 34.8%. The average for Australia is 38.7%. And we can see that it's the 47th percentile out of 18,000 markets. So, 75.5% is in the green there. And we can also go ahead and click on the history and we can see the auction clearance rate history of the area.
So we can see how it has trended over time and we can look back 3 years into the past and we can see that auction clearance rates have increased. And so, more and more properties are clearing at auction. Increased to about late 2014 or something and then has been steady above the 75 mark and, in fact, this month that I'm doing this is the first month it's dropped below 75 since mid-2014. So, being able to see this graph is a great idea because you can just see the trend for the area and you can use that to predict what's going to happen in the future.
So that is how you find auction clearance rates for the area. DSR data also provides you with a lot of different valuable information, like vacancy rate, average vendor discount for the area. This online search interest. Percentage stock on market. The days on market – how long it takes to sell a property. As well as this demand-to-supply ratio or the DSR, which gives you an idea of how much demand there is for property in an area.
So very useful tool. And so, if you are out there looking, what are the auction clearance rates in the area? I've heard them quoting auction clearance rates in magazines or on podcasts or whatever. Now you can go ahead and you can find the auction clearance rates for yourself. You can see how it compares to the rest of Australia and you can even see a trending history for auction clearance rates.
I'm Ryan from onproperty.com.au. And if you want to learn how to research an area and the 18 statistics that you should look at to research an area, check out my course on Advanced Suburb Research by going to onproperty.com.au/research. That's it for me today, guys. Until next time, stay positive.
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There are a lot of reasons you should invest in property but it isn't for everyone. Here are 14 reasons you shouldn't invest in property.
There are a lot of reasons you should invest in property, like being able to leverage your money, get capital growth, get passive income in the form of positive cash flow. But there's also a lot of reasons you shouldn't invest in property. Here's 14 reasons why you shouldn't invest in property.
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property. Believe it or not, property isn't for everyone. And there's a lot of reasons why you may or may not want to invest in property. I'm going to go through 14 different reasons you shouldn't invest in property. 5 of which are personal reasons. And then, 11 of which are investment reasons. So let's go through the personal reasons first why you shouldn't invest in property.
The first personal reason you shouldn't invest in property is you don't have the money. It's a lot more expensive to go ahead and invest in property than it is to invest in something like shares. Shares, you can potentially start investing for as little as $500 or $1,000 to start your share portfolio. When purchasing a property, you're going to need at least a 5% deposit. Plus, you're going to need to cover a bunch of costs. So, maybe around 10% of the purchase price.
If you're looking at a $300,000 property, you're looking at $30,000 as a minimum to get into the market. So, if you don't have a deposit, if you don't have the money to invest in property, it's going to be very difficult and you may not want to invest in property. You might want to pursue something else until you do have enough money.
The second reason you should invest in property is that you can't get a loan. Now, if you can't get a loan for a property, it's going to be very hard to purchase one. Properties are extremely expensive. We're talking $300,000, $400,000, $1 Million. A lot of us don't have that sort of money in the sock, under our pillow. We would need to borrow money from the bank in order to get that.
Now, if you don't have a steady income, if you're not full time or part time, if you don't have a business where you can show at least the last 2 financial years in terms of what you earn and you earn a decent wage, then it's going to be very difficult to get a loan. If you can't get a loan, you probably can't purchase a property. So I recommend going ahead, speaking to a mortgage broker first to find out whether or not you can invest in property, whether or not you can actually get a loan. Because if you can't get a loan, you’re probably not going to be able to buy a property.
The third reason you shouldn't invest in property for personal reasons is you don't know much about property. You just talked about it with your friends over a barbecue or you saw the Melbourne and the Sydney market boom and people make $100,000 or $200,000 seemingly overnight. And you think, "You know what, I want to get myself a little bit of that action. I wouldn't mind $100,000 in 12 months in terms of capital growth on my property. I'm just going to jump in and buy something." But if you don't know much about property, you don't know about the process. You don't know how to research an area.
You don't know about mortgages and all of this sort of stuff. Then, you may want to hold for a little bit. Start doing some education. Start reading up on these sorts of things to get an idea of the property market before you go ahead and invest.
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As an investor should you buy a house with tenants in it or are you better off purchasing a property that is vacant? There are pros and cons to each.
Should you buy a house with tenants in it? If you're an investor looking to purchase a property and you find a property that already has tenants in it paying rent, this can sound like a great deal, but should you buy a property with tenants in it or is it better off to buy a property that is vacant and you can then go ahead and choose your own tenant?
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property. And in today's episode, I wanted to talk through some of the pros and the cons of purchasing a property has an existing tenant so you can understand; what are the benefits? what are the negatives? What are the risks? What's the rewards? And you can make a decision for yourself.
We're going to start by looking at the benefits of having a tenant in your property. The first benefit is that the entire goal of you purchasing property is to have a tenant in there paying your mortgage, providing you with cash flow, offsetting your cost so your property can go up in value if capital gains is what you want. But the entire goal of purchasing that property is to rent it out to someone else and if you're purchasing a property that already has a tenant, then you have effectively achieved that goal a lot easier than if you purchased a vacant property.
There's no advertising to get a tenant. There's no waiting to get a tenant in. There's no finding a property manager. The process is just so much easier because the tenant is already there. That is the major benefit of purchasing a property with a tenant.
Another major benefit is that you've got instant cash flow in that property. If you were to purchase a vacant property, it may take a couple of weeks to rent out. You may be able to get earlier access to advertise it and to get a tenant in there before you take over the property. But it may take you a couple of weeks to get some money in through the door.
In which case, you've got negative cash flow in that time. So, by having a tenant in there and just taking over the property with that tenant paying rent every single week, well, you've got instant cash flow there so you don't need to worry about the issues of getting a new tenant and whether your property is going to lie vacant. So that's a major benefit as well.
My favourite benefit, I think, is the predictable cash flow that comes from already having a tenant in there. So if you're looking at a property and you're trying to work out what is the positive cash flow of this property going to be? or how negatively geared is this property going to be? You can do it based on estimates of what you think the market value of the property is. You can talk to the real estate agent.
You can get pretty accurate there, but you don't necessarily know the property is going to rent for that much or if you're being taken for a ride. However, if someone's in there renting the property, then you know how much money you're getting and so you can go through, do your cash flow analysis and decide whether or not this is going to be a worthwhile investment for you.
If you need help doing that cash flow analysis, go ahead and check out propertytools.com.au, which is a tool that I created where you can just enter the purchase price and rental income and it'll give you some cash flow estimates or you can go through more details to get a more accurate result. So, again, go to propertytools.com.
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Is winter a bad time to sell your property? Common knowledge and experts say it is a bad time, but the data tells a completely different story altogether.
A lot of experts say that winter is the worst time to sell your property, with spring being the best. But is winter actually a bad time to sell your property? Is this idea based on fact or is it just something that people believe, but isn't actually true? There are a lot of preconceived notions around the best time to sell your property. A lot of people believe that spring is, by far, the best time to sell your property because your garden is going to look nicer, the light in your property is going to be better, it's warmer, it's nesting season.
There are a lot of reasons that people give for why spring is the best time to sell your property. They also say that summer can be a good time as well because, obviously, it's very sunny, it's very nice. And they say that winter is a bad time to sell your property because it's darker, it's colder. For some reason, they believe people aren't buying properties in winter.
This belief or preconceived notions around winter being a bad time to sell your property. However, I wanted to discover whether it's actually true so I got in contact with Jeremy from dsrdata.com.au who's my go-to guy when it comes to data and research about an area or about the Australian property market. We'll definitely be talking about his website, dsrdata.com.au, which is great for doing research.
He sent me this graph, which is the average DSR+ country-wide. So DSR+ is a figure of demand-to-supply ratio that pulls in a lot of different statistics. I think it's over 15 or 20 different statistics, could be even more, to understand what the demand versus the supply for an area is. If we're looking at winter is a bad time to sell your property, for me, a bad time is when there's supply but there's no demand to buy your property so things are going slow. And so, we want to see a dip in winter in terms of demand-to-supply ratio.
Now, 50, if you can see the graph, if you're watching the video, if not, I'll describe it to you. 50 is the equilibrium or the theoretical median where demand is actually equal to supply. And so, for the majority of the time since 2010, average demand versus supply has been over 50 and we saw a drop in 50 around 2011, 2012 and then growth in the demand-to-supply in 2013, 2014, 2015.
We're looking at this graph and what we would like to see is dips where it says "7" because this is July and so, "7" and then after July or slightly before it, slightly after it, so June, July, August. And so, 2010, there's no dip in winter, it's just flat. If we look at 2011, then it does dip in winter, but it actually ends up at its lowest point in summer. So it's dipping in winter, but also dipping through spring, lowest point in summer.
Okay, we're then going to 2012 and we see this massive spike in demand-to-supply ratio in 2012 and then a dip in I think that's August there, but then it kind of levels off across spring. We're then seeing in 2013 a rise. And if we look at winter here, we can see a tiny dip, but then it continues to rise. If we go across to winter 2014, then we can see, just before winter, it has gone up and then kind of stayed steady across winter, dropping in spring and summer. And then, 2015, where it's steady in winter as well.
So we're not seeing a drop in winter that we can compare to summer or we can compare to spring and say that this is different.
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After the recent Sydney/Melbourne boom and some concerning articles it's time we talk about the Australian housing bubble. Is it real or an over-exaggeration?
Today, I want to talk about the potential housing bubble in Australia, read a couple of articles with you guys that are talking about this. And then, try to come to an understanding of whether or not there is a housing bubble and some of my thoughts on what I would do in this situation.
This came to my attention through an article on the financial review. It got highlighted to me by onthehouse.com.au. They sent me an email about this, but basically, it's an article by Anne Hyland on afr.com, which is the Australian Financial Review. I'll link up to it, just go to onproperty.com.au/afrarticle. Yup, let's do that link and you can check it out there.
“There's a hedge-fund manager and an economist who pose as a gay couple on a combined income of $125,000 and they tour Sydney's western suburbs viewing housing developments and meeting mortgage brokers for research to determine if there is a housing bubble in Australia and they came to the conclusion that this is worse than they thought.”
This was written back in February of 2016. They're saying that the further west they went, the more irrational they felt. Lots of supply and prices that bore no resemblance to construction cost or the incomes of people around there. There was some interesting things in this article; like they discovered repeatedly that mortgage brokers are advising them to actually lie on the loan application documents about the deposit and about their income.
This is quite concerning as I read this and they asked if the bank would call our employers and both reputable and disreputable brokers said they rarely verify pay slips. That's concerning to see, that the banks aren't doing that.
What else was there? They talked about the residential mortgages as a percentage of total loans and they show Australia where residential mortgages as a percentage of total loans is over 60%. Norway is 40%. Hong Kong is like 15%. The U.S. is like 33%-ish. So, Australia is well above the pack in terms of we got more of our home loans as a percentage of our loans than, basically, any other country out there by the looks of it in this graph.
I'm not sure if it's misleading in they're leaving out other countries that have similar to us. But they're also talking about an oversupply of apartments and housing. Talking about that Australian housing apartments are selling for $11,000 a square meter, which is similar to Hong Kong; which is a really expensive area. Manhattan averages around $14,000 a square meter, so they're saying that obviously, very expensive here.
Tepper is warning bluntly that Australia has one of the biggest housing bubbles in history. Noting that the country's real estate value to GDP is 3.8 times compared to that with Ireland and Japan, which both were at multiples of 3.5 times before they experienced a housing market crash.
We're above the 3.5, which other countries had high real estate value to GDP and then they went and had a crash. Japan's real estate fell by 80% and Ireland's fell by 50%.
He is predicting falls in the Australian housing market of up to 50% in Sydney and Melbourne and around 80% in mining towns.
It's also showing it has the highest level of household debt to GDP in the entire world. There's a lot of things that are kind of point toward the Australian market potentially being over-inflated.
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What is a quantity surveyor? What do they do and when do you need to hire them?
What is a quantity surveyor? What do they do and why is it important to you as you're building your property portfolio?
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow properties. I wanted to teach you today about exactly what a quantity surveyor does and when it's going to be worth you hiring them.
A quantity surveyor is someone who's a specialist in the measurement and the estimation of construction cost. Now, this means that they're really good at looking at plans of a property and working out how much concrete? How much steel? How many bricks? What is going to go into this property and how much is it going to cost? They're also a specialist at looking at an existing property that's already been built. Maybe it was built 20 years ago.
They can assess it and say they used likely this many bricks, this much wood, this many tiles and how much would that have cost 20 years ago when that property was built. So they can estimate the cost of a property that's going to be built. They can also estimate the cost of a property that has already been built.
Now, why is this important to you? It's important to you because when you're investing in property, there's a valuable tool called "depreciation". Depreciation is the lowering in value of an item. The easiest example that I can give is when you purchase a car brand new – let's say you paid $40,000 for a new car. You know that as soon as you drive that off the lot, it has lost value and is now worth 10% less or something like that. That loss in value is called depreciation.
Every year, that car is going to get worth less and less and less and less. So a car that you might have paid $40,000 for 10 years ago, isn't going to be worth $40,000 in 10 years’ time. It might be worth something like $10,000. So there's a big difference between what you paid for it and what it's worth now and that difference in value is what's called "depreciation". So a car you bought 10 years ago for $40,000 has depreciated $30,000 and is now worth $10,000 today.
The reason this is important when you're investing in property is that the ATO allows you to offset these depreciations and count them as a loss on your property. And with the current negative geared laws, which may change in the future, you can actually offset that against other taxable income that you're earning. This is why it's so valuable. Because if you're a high income earner and you're paying of tax, over 30%, high 30%, maybe even over 40%. If you can claim $10,000 in depreciation, there's the possibility that you could get some of that back from the government or you don't have to pay as much tax.
And so, depreciation is very, very valuable because it can improve your cash flow because it lowers your cost – one of your major costs, and that is tax. Because you are claiming the loss in value of these items in the property, it just means that the property, on paper, isn't making as much money because you've had all these depreciation losses. So this can be very valuable in terms of cash flow, in terms of giving you the extra cash that you need to be able to service more loans, buy more properties, pay for that next renovation, etc., etc. So depreciation's not to be overlooked.
I know there's a lot of investors out there who invest and don't do depreciation, but this is generally due to the fact that they're uneducated about what depreciation is and why it's valuable to them.
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Recently I interviewed Steve McKnight and I wanted to share some of the things I learned from that interview.
A couple of days ago, I had probably what was one of the most important interviews I've ever done for On Property and that was my interview with Steve McKnight. This is the guy who got me interested in positive cash flow property in the first place. Without him, I would never have started Cash Flow Investor, which became On Property. So I was really excited to interview Steve McKnight.
He didn't have a lot of time, so it was a very short interview. But it was great to pick his brain to understand the angle he's coming at things from and to learn a bit from him. I've been mulling over the things that we talked about for the last couple of days. Today, I wanted to share with you my learnings from the interview that I did with Steve McKnight.
The biggest learning that I took away from that was the way that Steve talked about the potential that the market has to move. So he talked about a bell curve and – let me just draw a bell curve on this piece of paper for those of you who are watching the video. But basically, you've got your bell curve here and everything under the line are, let's put that as, most likely to happen. That's your 100% of chance of things happening.
Something under that line is going to happen and then what Steve talked about is in the middle here is the things most likely to happen. So the very center is the market just remaining stagnant or the market slightly increases or the market slightly decreases. On the sides, on the end, under the bell curve are these your extremes. So this is the market absolutely plummets or the market absolutely grows exponentially and goes absolutely crazy.
It was really interesting because a lot of the emails I've been getting from Steve McKnight have talked about the doom and gloom of the Australian market and he did talk a bit about how he feels like there's not a lot stimulating the housing market in Australia. But in saying that, he did talk about this and talk about how the biggest chance you're going to have is that one of these 3 things – the market's going to remain stagnant, it's going to steadily increase or it's going to steadily decrease, but only slightly, not extreme.
I think the game that he's playing, whereas a lot of other people are playing a different game, is he's looking at that and saying, "Okay, what's the most likely scenarios that's going to happen?" but also, "How can I protect myself against catastrophic loss?" I think a lot of people don't consider the chance of the way the market is going to move.
For example, a lot of people who missed the boom of Sydney and say, "Well, I don't want to invest now because I believe that prices might fall." But they don't think of this graph and say, "Okay, what are the chances that prices might fall?" Because there's a chance for everything, right? So people just assume the price is definitely going to fall, but that might actually be on one extreme side of this bell curve and the chance for that might actually be pretty small. But people lock themselves into this idea that the market is going to move this way so I'm not going to invest.
I just love that approach that Steve took that said, "Look, here's the chances of things happening in the market, but I'm going to invest in a way that I can basically make money in any particular market." For the majority of people who invest in property and they only make money in one way – through capital growth.
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Is the Australian property market in a bubble and is due to burst and how should you be investing in today's market? Best selling author Steve McKnight provides us with his insights.
Hey guys, Ryan here from onproperty.com.au, helping you find positive cash flow property. Today, I have the absolute privilege of welcoming on the show Steve McKnight who is a very well-known author around property investing in Australia. He's written multiple books, including one that I highly recommend and have listeners and readers of mine have bought hundreds of copies of this book and that's 0 to 130 Properties in 3.5 Years.
In this book, Steve talks about how he went from 0 to 130 properties with his business partner in just 3.5 years. Following that up, there's 0 to 270 In 7 Years. So Steve has accumulated a lot of properties over time. In fact, it was Steve McKnight's book that got me interested in positive cash flow property in the first place.
I was 16 years old and about to go on a trip to Queensland, to the Great Barrier Reef. I was at the airport and I saw this book in the airport. I ran out, got some money off my dad, purchased the book and then read through that book and got extremely passionate about positive cash flow property. I'm extremely grateful for everything that Steve has done. He, as you find out in the interview, has purchased over 800 properties in his lifetime – in his property investing career.
He has a lot of knowledge and stay until the end where we talk about what anyone can do in no matter what market you're in to ensure that you can move forward and achieve the goals that you've set for yourself. So without further ado, I welcome someone that is very important in my life that has had a massive impact on me and that is Steve McKnight.
Ryan: Hey guys, Ryan here from On Property and I have with me the one and only Steve McKnight, author of 0 to 130 Properties in 3.5 Years and a bunch of other books.
Steve, I wanted to ask you, off the bat, what do you think the landscape of Australia is like at the moment? Because I do receive a lot of your emails and they seem to be a lot of doom and gloom kind of vibe going on there. Do you believe that the Australian market is in a bubble and about to burst or are you more optimistic than that?
Steve: Wow, straight to the hard-hitting questions.
Ryan: We don't have heaps of time, so I figured just get straight into it.
Steve: A mentor of mine once said – a very smart guy who has been investing for 40 or 50 years – said to me, "Steve, when the average person can't buy the average property, then there's a problem." And I think in Australia, there's 2 things that impact a property market. There are factors that stimulate it and there are factors that stifle it.
We have been on one of the biggest bull runs in terms of stimulating factors since the GST was introduced and the first home owners grant came in that anyone can really remember. For instance, we had first home owners grant, we've had low interest rates, the mother of all – the mining booms, strong Australian Dollar – although that's come off the boil.
And what to me is that Australians have a lot more borrowing ability. They've had a lot more incentives to get into houses and they have borrowed like never before to buy like never before, and that's fine. That's where we find ourselves and that's great for those of us who have been in the market and made money in the market.
But then, we look forward and we say, "Well, going ahead,
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There is this belief that negative geared properties grow while positive cashflow properties don't. But does negative gearing guarantee capital growth?
There's this belief out there in the world of property that negative geared properties grow in value or provide you with capital gains. Whereas positive cash flow properties don't grow in value and don't provide you with capital gains. So when it comes to investing, you either need to choose negative geared properties or you need to choose positive cash flow properties and you can't have the best of both worlds. So today, in this episode, I want to talk about whether or not negative geared properties are guaranteed to grow in value.
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property. I've just moved house, so if you're watching the video, you'll see a bunch of boxes beside me. So, sorry for that, but I didn't have time to unpack and wanted to get straight into it and talk to you guys.
This thought comes out of an email conversation I've been having with one of the followers of On Property who's interested in a whole bunch of situations, but seems to have the belief that they can either invest in negative geared properties in order to get capital growth or they can invest in positive cash flow properties, but they'll need to forego the capital growth.
I just want to tackle this topic and get you guys thinking about this as well. Do negative geared properties guarantee that you're going to get capital growth? Because a lot of people go to seminars. A lot of people read investment magazines or investment books and they'll come out of it thinking the best way to invest in property is to purchase negative geared property that's going to grow in value. But for some reason, in amongst that, they get the belief that says, "If I buy negative geared property, it's going to grow in value." which isn't exactly true. And the easiest way to debunk this myth is to just say, "Do you know of an example of a negative geared property that hasn't grown in value?" and I could give you a myriad of examples.
Everywhere from my friend who purchased a new build property that 5 years later, still worth less than what he paid for it and was negative geared the majority of that time, to a whole bunch of investments that are being sold at the moment off the plan that are negative geared and probably are overpriced and won't grow in value, to my parents who purchased a negative geared unit in Cronulla in Sydney; which is within a capital city and they owned it – I can't remember how many years they owned it, but it didn't grow in value by the time they sold it. I can think of many examples in my life where I've seen that negative geared properties don't grow in value.
We also want to look at the other side of the coin, is that the belief that positive cash flow properties don't grow in value. Again, I've seen many examples of positive cash flow properties that have grown in value. I go out, I find a new positive cash flow property every single day. And because I do this so often, sometimes you see the same properties come around or you see the same areas and you see how much they've gone up in value. So, I can say, with certainty, that there are properties out there that have grown in value.
Even, I think it was probably like a year or 18 months ago, that I listed a positive cash flow property in Western Sydney that had a granny flat attached to it. And we all know what has happened to the Sydney market in the la...
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Lender's mortgage insurance is a one time fee the borrow pays to protect the lender against a riskier loan. Lender's Mortgage Insurance explained
So let's say you want to invest in property but you don't have the minimum 20% deposit required. Well, you're likely going to have to pay what's called Lender's Mortgage Insurance. But what exactly is Lender's Mortgage Insurance and is it worth the cost? In this episode, I'm going explain Lender's Mortgage Insurance. What exactly it covers and why you would want to get it.
Hey, I'm Ryan from onproperty.com.au, helping you find positive cash flow property and I've just moved house. If you're watching the video, you can see a bunch of boxes in the background behind me so I apologize that I don't have the best setup today, but I did want to create some good content for you. And this is a question that a lot of people ask. A lot of people want to see lender's mortgage insurance explained. And I do feel like often times, banks and lenders and sometimes mortgage brokers don't really explain exactly what lender's mortgage insurance is or they don't take enough time explaining it so you actually understand it. So we're going to get down to it, try and understand exactly what it is and why it could benefit us and whether or not it's worth paying for.
Lender's mortgage insurance is an insurance fee that helps to cover the lender when they're taking an increased risk on a loan. So, lender's mortgage insurance, some people believe that it's actually to cover you personally as the borrower of the loan, but it's not. It's for the lender to protect them if they're taking an increased risk on a loan. What exactly is an increased risk? Well, for most properties – most residential properties – banks want to see at least a 20% deposit in which case they won't charge you lender's mortgage insurance.
They like to see a 20% deposit because if you, for some reason, default on your loan and they need to sell their property, they're quite confident that they're going to get at least 80% of the value that you paid for the property back when they sell the property and this will cover their loan.
However, if you're only borrowing 5% of the property's value, then they're a lot less confident that if you default on the loan they're going to get 95% of the value of the property back. So it's a higher risk loan for them. And so, in order to cover this higher risk, they charge an insurance fee to cover that extra risk. Obviously, a lot of people will take out this insurance, not everyone will need it. That's the way that insurance works.
So the banks will charge you a one-time fee and everyone else a one-time fee and I guess this insurance covers them against those few circumstances where people do default on a loan and they have more trouble selling the property and getting enough value back. So lender's mortgage insurance, it's a one-time fee that you pay and it goes to protect the lender because they're taking an increased risk on you to get the loan.
This sounds like it's not very beneficial to you, right? It's a fee that you have to pay, generally, it's added on to the loan so your loan gets bigger, but you've got to pay it and it protects them as the banks. Well, what's the benefit to you as a borrower? Well, the benefits aren't obvious, but they are there. The benefit of lender's mortgage insurance is that if you don't have the full deposit, then you can still get money from the bank.
If lender's mortgage insurance didn't exist,
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A lot of people have the goal of 10 properties in 10 years. But will this goal actually help you achieve what you want?
Do you need to buy 10 properties in 10 years? A lot of people out there have this goal of buying 10 properties in 10 years or they encourage people to have this goal of purchasing 10 properties in 10 years. Today, I want to ask the question, do you actually need to buy 10 properties and do you need to buy them in 10 years? So, let's have a look at that. Let's try and break it down and see do we actually need this to achieve what we want in our life?
This is kind of carrying over from the last rant I did which is onproperty.com.au/345 where I talked about some alternative ways to think about financial freedom. And a lot of people think about financial freedom in terms of how much money they want to make, the lavish lifestyle that they want to have. However, if we can fast forward it and imagine ourselves as 80, 90, 100 on our deathbed and try and think back to our lives and think about the things that were important and meaningful to us, often we find that the cars, the mansions, the lifestyle – that's not what's important. It's the family, it's the community, it's the positive you had on people.
Well, that's my story, anyway. Yours may be different. So, I wanted to analyze, do you need to buy 10 properties in 10 years? Because it's a goal that a lot of people have and, look, it's a great goal. But a lot of people just think, "Okay, I need to buy 10 properties in 10 years in order to achieve something." and often, they don't actually know what it is.
What I would encourage you to do is actually go back, listen to onproperty.com.au/345 and listen to that episode there and try and work out, "Well, what do I actually need in order to be financially free and in order to at least get a base level of the life that I want?" Me and Ben Everingham, who's the buyer's agent from Pumped on Property, we talk about this often. We set goals for ourselves that are unachievable or we don't have goals. Often, the easiest thing to do is to just say, "What is the income that I'm earning right now through my job and can I go about replacing that in terms of passive income?" and setting that as a goal. Because, at least then, when you reach that, you know you've replaced your income.
You may not have the lavish lifestyle that you want, but at least you know that you're now financially free and if you lost your job today, you'd be able to survive and you'd be able to live a pretty decent lifestyle. That can be a good goal to start with if you don't have a goal or if your goal is too big. Maybe you want to start by looking at "Okay, well how can I replace my income through property investing first?" And then, once you've replaced the income, you can then move forward from there and begin to grow your wealth.
Let's look at how 10 properties in 10 years ties into this. Obviously, when we set a goal, ideally we want to have a timeframe on it and the earlier we achieve financial freedom, obviously, the better because it gives us more of our lives to enjoy. Buy why 10 properties? Why do we need 10 properties? Look, I don't know. 10 is a nice round number and so, I think 10 properties in 10 years sounds achievable and it helps sell product, so maybe that's why people have jumped on to this. But let's analyze it and look at how much income do we actually need to survive and how are we going to go about achieving that?
There was a story that I read in a real estate magazine y...
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In this investor profile we talk to Jonathan Preston who has purchased 5 properties in the last 4 years. If you want to be featured on On Property simply email ryan@ryanmclean.net
Hey guys! Ryan here from OnProperty.com.au, helping you find positive cash flow property. And one of the things that people love to hear is from investors who have gone out there, purchased property themselves and had some experience in the market and achieved some success. And so today for our Investor Profile, I have with me Jonathan Preston, who has purchased 4 properties himself and has built up quite a successful portfolio and has just written a book about it as well.
Ryan: Hi Jonathan! Thanks for coming on today.
Jonathan: Thanks very much for having me.
Ryan: So, give us first an overview of what is your portfolio and what does it look like. And then we will talk more specifically about each of your properties and why you chose to purchase those ones.
Jonathan: Yes. So at the moment I have 5 properties. 4 of them are located in Sydney, more specifically Western Sydney, and the last one that I purchased was in Queensland. Basically, I have the philosophy observed like yield-growth, and I believe in that you can actually to continue to build a portfolio over time.
Ryan: Yeah. So we were talking a bit before this interview about how you like to invest in areas that are set to grow but you like to have a decent enough field so that they are either neutral or they are positively geared so you can afford to grow your portfolio because we all know that if you go super negatively geared, that is only a couple of properties before you run out of the income to support those properties. So I can understand your attitude there.
So, talk us through the first property that you purchased. Actually, are you able to share results of like what have you achieved in terms of equity and stuff like that or passive income before you get into it?
Jonathan: Yeah, sure. Well, I will go through each one individually and say what I think it was roughly worth, what I purchased it for, everything like that. So first one that I got was a 2-bedroom in Liverpool.
I bought that towards the end of 2012, and that is just a basic kind of 2-bedroom unit. It was quite nicely renovated inside. I paid $217,000 for that one. The rental yield was appraised between $300 and $310 a week, so it was pretty good in terms of the yield there. I would say today, that is worth about $380 - $390, so capital growth on that has been pretty substantial.
Ryan: Yeah. Obviously the Sydney market has gone pretty crazy in the last couple of years so you got in at a good time, definitely there. What was your reason for choosing Sydney, and for choosing Liverpool in particular? Do you live around that area or is there some sort of strategy behind it?
Jonathan: No. Actually, I have not lived around there. Basically, I wanted to find somewhere that met the criteria of being high yield but also very commutable to Sydney. The commutability to me, to a major city is very important part of the equation.
That is really because I think that the urban sprawl is going to take place over time, and I really think that how much a property could go up in value is largely determined by income growth over time, and the capital cities typically will find, basically see much greater income growth over the long term. So, Liverpool was quite attractive...
Ryan: Is that something that you know,
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Many people get stuck thinking about financial freedom in a non-productive way. Here are some alternative ways to think about financial freedom.
Today, I wanted to talk about some alternative ways of thinking about financial freedom and kind of poke the box of what we think financial freedom needs to mean for us and what the ideal lifestyle needs to mean for us. I used to be in the basket of the person who thought that in order to be happy, in order to feel successful in life, I needed to be extremely rich. And I would set goals for myself like, “This year, I'm going to make a million dollars.” and I had in my mind that if I made a million dollars, then I would be successful and I would be happy. And if you're thinking that way, then look, that's absolutely fine. A lot of us go through that phase.
A lot of people always want that, but there are some alternative ways of thinking about financial freedom that I just want to challenge you a bit with today to start thinking about, okay, what is really important in my life? What do I really care about and what do I really want?
Let me take you back a few years. I think it was October 2010, so it was about 5 years ago and I'm just going to bring it up. If you go ahead and Google "why I will be financially free in 5 years" let's see if I come up. Okay, ryanmclean.net should come up. If not, you can just search for "Ryan McLean" as well. This is a post that I wrote 5 or 6 years ago now.
It's a very cocky post that I wrote when I was... How old was I? I must have been 21 when I wrote this, so maybe it was more than 5 years ago. I have the crazy dream ambition to become financially free in 5 years. So I planned on being able to retire by the time I'm 26. So, I'm 28 now. So, this was probably 6.5 years ago that I wrote this.
Basically, I go through this post and I talk about why I'm going to be financially free. Why I'm so awesome and it's actually quite embarrassing to read through this, but I think what's really valuable is at the end; point number 7, I talked about one of the reasons I'm going to be financially free is I know my "Why". And there's this one sentence where I wrote: So I can have as much free time as I want to spend with my family. And so I can have a platform for which to speak into people's lives. And at the time, and still now, those are probably the 2 most important things to me.
They're my family, being able to spend time with my family. Being able to see my kids grow up, being able to be a part of that. I had a stay-at-home dad when I was a kid and he was really involved in me and my sister's life. And that's something that I wanted to emulate and something that I wanted to do as well.
And then, also, I wanted to, I guess, do some good in the world and I really love communicating, I really love speaking. And so, I wanted to be able to have a positive impact in people's lives. So, back 6.5 years ago, I thought about this. And then, when the 5 years came around, I wrote an updated post on how I'm not currently financially free, but looking back, I realised that I had achieved my "Why". Because the situation I'm in at the moment is I run my own online marketing business.
I run a multitude of websites – one of them being OnProperty, which you guys are listening to now. I'm not financially free. However, I work for myself, I get to spend a lot of time with my family and I also have a platform to speak into people's lives. So, they're the 2 things that were important to me.
Basically,
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How do you see the development applications for a given area? Microburbs.com.au displays them in an easy to read list.
If you are interested in investing in an area or you own a property in an area, you may from time to time want to see the development applications for that area. Traditionally, you need to go to council in order to do this. However I have discovered how to see the development applications for an area for free, online, using a great free tool.
So we are going to be using a free tool that is called Microburb, which you can check out at Microburbs.com.au. Now, this tool gives you a whole bunch of different information on the demographics of the area, commute times, like rankings of schools and all that sort of stuff. But one of the things that it also does is it gives you development proposals for the area. So let us go ahead and have a look at Lindfield in New South Wales, which is the suburb they recommend, and it is going to bring up a lot of different reports. There is affluence score, where we can go in and see the public housing for the area; family schools, you can see the schooling in the area; you can see so many different things. But we want to go to the investor data section.
Now we want to go to the planning applications section, and if we click here we can see 14 more. And so now we can see all the planning applications for the area, and we can see when those planning applications were submitted. We can see a more recent one here, alterations and additions to an existing dwelling on the 22nd of January, 2016. We can see them all the way back to one in 2010, in May 2010; alterations and additions including a kitchen-laundry bi-fold doors, deck, garage, front fence and gates.
So you can see the planning proposals that are here, you can see what they are. We can see one here: addition to the first story, dwelling development, internal changes. You can see a brief overview of what they are about. So you can see all the planning applications that are there, and also they have another section down the bottom - if we go to local government area statistics and we go to development, there we can see a breakdown of the different development applications or developments that have happened in the area. So we can see alterations that have happened, we can see new houses, we can see commercial properties, new multi-units and some other sections as well.
If we go down we can see them ranked by price; how much did they cost to do. Obviously, multi-units are going to be $1 million to $5 million, or $5 million plus, whereas alterations to your house will be less than $100,000. And something that is really interesting is you can see the residential development intent, this line graph here, so you can see how many developments have been happening. And so we can see single houses: 17, 23, 16, 14; so we can see the graph there. We can see attached houses - the ones there; and we can see units as well.
And so given that these graphs are showing 225 to 10, even in houses 22, single houses 18, obviously this report for the planning applications for the area is not going to cover everything. But this graph is really cool because you get to see the trends in the area, so for something like Lindfield, this goes back to 2013 by the looks of it. And so we can see back in mid-2014 that there was a lot of unit applications, and so what we would then do - we can see the drop off here, is then kind of track that and see how is that affecting the area,
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How do you know the best time to sell your property? It's easy to monitor the market with this free tool.
The property market goes up and down all the time. So how do you know when's the best time to sell your property? Luckily, there's a tool out there to help you assess the market on an ongoing basis to understand the trends in your current suburb and whether or not you should think about getting out and selling your property before the market goes down or before it plateaus.
To do this, we're going to use a tool called DSR Data, which stands for Demand to Supply Ratio and you can get this over at dsrdata.com.au. This is a really great tool and it gathers a lot of different information from around the internet; different sources to try and assess how much demand is there for properties in the area compared to the supply of properties in the area. And so, ideally, you don't want to sell when the DSR is extremely high because this means that you're likely going to get some growth in the future. However, when the DSR starts decreasing, then you want to think about selling.
Let's go ahead and look at a suburb where I used to live called Cronulla. So, I'm going to put in "Cronulla" for units and we can see – it will come up in a second – that the DSR for Cronulla is – I think it's 74 out of 100. There we go, 74 out of 100. Now, if the DSR is 50 out of 100, that theoretically means that the market is balanced, so there is equal demand and equal supply. If it's below 50, that means that there's more supply than demand, which is not a great situation. And if it's above 50, and the higher above 50 it is, means the more demand there is for the area.
So if we go ahead and create an account and login, which is absolutely free. What we can do is we can actually Market Monitor. So if you own a property in an area, we can setup monitors for your area and you can get emailed every time something happens in your area that you want to be aware of. And I'll show you through this, but this is really cool because you can say, okay, the DSR data of my area is "X", notify me when it drops below that. So, let's go ahead and we'll put in Cronulla in New South Wales here.
So we're going to go ahead and click Cronulla for units and then click on Add Market. Now, we can select statistics and get notifications when these statistics change. So the first one that I want to monitor is the DSR itself because that pulls from a lot of information. It's a really great reference point. So, here's the demand to supply ratio.
If I click on the Context, then I can see we're currently at 74, which is very heavily in the green. Basically, we can see Australian average of 59 here. So let's say I want to be notified when the DSR falls below 70. We can look at the history of the DSR here as well. We can see that the DSR has traditionally been quite good, but then has been above 70 recently. So, when it falls below 70, I want to be notified. Another thing that I want to be notified of in this case is the Average Vendor Discount.
If we look at the history of the Average Vendor Discount, we can see it's usually around the 4%-5%. Then, went up to between 5% and 6% and then dropped dramatically recently. But, a few months ago, it was actually negative and it now seems to be going up. So I want to get notified if it goes above 2%. So, if it rises above 2, then I want to go ahead and be notified. So, send me an alert whenever any of the above is true and alert me via email.
If I go ahead and click Save,
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There are some great free sites for researching property in Australia. You can find out everything from capital growth trends to the hipness of an area.
In recent years (and even months) a lot of great free sites have been made available to help Australian investors and homeowners do effective property research.
Here are my 8 favourite sites that I think you will absolutely love.
You can get almost everything you need for property research just from these 8 free websites.
Let me show you through them now.
1. Searching For Property - MyRealEstate.com.au
RealEstate.com.au and Domain.com.au are antiquated portals full of ads that get in the way of your property search.
When I do a simple search for properties in "Cronulla NSW" my adblocker blocks 17 ads on RealEstate.com.au and 26 ads on Domain.com.au.
Ads aside MyRealEstate.com.au is a better search tool for a number of reasons.
A) You can use natural language (think Google) - "2 bedroom unit in cronulla under $700k" (click to see the results in a new window). Other sites force you to enter criteria which is more annoying.
B) You can use search terms - I love searching for properties with the keywords "rented for" (click to see the results in a new window) to find out some yields of the area and even find positive cash flow properties.
C) All properties - MyRealEstate shows properties from all major real estate portals plus real estate agents websites. So every property is going to be on there. 2. Growth Trends - DSRData.com.au DSR Data (stands for Demand to Supply Ratio) collects a lot of different data point to give you an idea of how much demand there is from properties compared to the supply of properties in an area.
High demand and low supply leads to a high DSR score and correlates to short-term growth of the area. Low demand and high supply give you a low DSR score and correlates to negative or stagnant growth of the area.
Sign up for a free account and you also get data or auction clearance rates, days on market, percent stock on market, percent renters in market, online search interest, average vendor discount, gross rental yield, vacancy rate and typical value. 3. Suburb Demographics - Microburbs.com.au Microburbs is a great new tool that gives you immense amount of detail into the demographics of a suburb.
It will show you details and even heat maps of everything from public housing to crime rates to median income in the area.
This tool is an absolute must if you want to get an understand of what the area is like before investing into the area. 4. Previous Sales History + Comparable Properties - OnTheHouse.com.au OnTheHouse is a great way to get a lot of the information found in a free property report.
It will give you an estimate of the value of the property, give you zoning details, land size as well as previous sales history for the property.
You can see exactly when the property was previously sold and for how much. Occasionally you can also see what the property was previously rented for.
It will also show you comparable properties in the area so you can compare the value/asking price of a property to similar properties in the area. 5. Historial Listings - OldListings.com.au The major real estate portals don't show when the property was listed. They want to hide this from you as they want to serve the best interests of the selling agents.
Often a property may stay on the market for a long period of time and have lots of price reductions.
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If you want to avoid public housing hotspots in an area you can. I'll show you exactly how to find public housing hotspots so you can avoid them.
If you're looking at investing in a property, chances are you're going to want to know where the public housing is in that area. Homeowners often want to know where the public housing is, as they want to avoid that area and some investors actually seek out public housing for the potential higher yields that properties around the public housing areas can deliver them with the potential of positive cash flow. So in this episode, I'm going to show you exactly how to find public housing hotspots in an area using a tool that's absolutely free.
Hey, I'm Ryan from onproperty.com.au and the tool that we're going to be using to do this is called Microburbs and you can find that at microburbs.com.au. You used to be able to do this – you still probably can – through a tool called Ripehouse, but that's a paid tool that's going to cost you at least $200. You could do this free through the census. However, it was very difficult and technical to do. However, Microburbs have made it really easy and I'll show you how to do it now.
So, here we are on the homepage, microburbs.com.au. All you do is enter the area – the suburb that you're interested in looking at. Let's just choose one area of interest that I don't know a lot about, Tamworth, New South Wales. So let's go ahead and have a look.
Now, Microburbs shows you a lot of different things. There's a lot of information in here. If you want to see that they offer, go to onproperty.com.au/339 and I did a walkthrough with the creator of Microburbs and we went through absolutely everything. But for this purpose and finding public housing, we want to go to this affluency score section here. Go ahead and click on that, and we can see public housing here. So if we click on that, that's going to give us a heat map overlay of public housing in the area.
Now, I don't know anything about Tamworth, I've never been there. So, I don't know where the public housing is. But I can see from this heat map, straightaway, that in West Tamworth, 16% of West Tamworth is public housing and in South Tamworth, it's about 8%, whereas in Tuminda is 0%. Regular Tamworth is 0%. East Tamworth, 2%. Kingswood, 0%. Hillview, 1%. So, all around, it seems to be very low. But in these 2 areas, it seems to be quite high.
Now, the powerful thing about Microburbs is that we can actually break this down from just the suburbs, which we're looking at now, into smaller sections of the suburbs that they call microburbs. So when the census is done, they break it down into these different little areas of about 400 dwellings or 400 residences. So, if we zoom in, that's actually going to break those suburbs up into different micro sections or microburbs so we can see all the difference here.
Now, it was West Tamworth and South Tamworth that seem to have the highest percentage of public housing. But now that we've zoomed in, we can see a red spot here where public housing is 59%, above that it is 49%, 38%, 36%, we've got 15% there. So we can see a big pocket of public housing here in the Southwest of Tamworth and we can see a few here, 19%, 25% and 38% – another pocket there. So, even though when we've zoomed out, this was all red for West Tamworth.
Once we zoom in, we can see, actually, it's just the more Westerly side of things that have the high percentage of public housing. Actually, the East side of West Tamworth,
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Today I share a new tool that gives A LOT of information about a suburb so you can make more informed investment decisions.
Hey guys. For years, it's been really hard to find decent data on an area that you're looking at investing in. If you're interested in investing a particular area, if you don't live there, it can be very difficult to know things about that area that you want to know. Things like; even capital growth or crime rates or public housing in the area.
What the area is like? What kind of restaurants are in there? Over the last 6 months to 12 months, there's been a lot of tools that have been coming out that have made life a lot easier for us. And we have a new tool that I've actually just discovered yesterday called microburbs.com.au and I've got the creator and founder, Luke Metcalfe with me today to talk us through it and how we can use this to better help our investing.
Ryan: Hey, Luke, thanks for coming on today.
Luke: Hey. Thank you very much for having me, Ryan.
Ryan: Okay. So, talk the people through what exactly is Microburbs and why did you start it?
Luke: Yeah. Okay. So, Microburbs is a site, totally free site that gives you these detailed comprehensive reports for everywhere in Australia. Our goal is to provide all the information that you don't otherwise get in property ads and in a format that is really easy to digest. We break things down by all different kinds of qualities of a property like tranquility and hipness and lifestyle and convenience and provide scores of each of those. And then, break down the reasons why.
So, for example, under tranquility, we show what kind of land nuisance nearby. Is it near industrial? Is it near public housing? Under affluence, we provide the median price and you can see that on the map as well. The convenience will show you how far it is from train stations and from the city. So, all the kinds of stuff that you might to find out about a property. All these things that you – it's such an enormous checklist of things, often as negative things, as well. Like, you might be surprised when you move in that you're in a mobile black spot. So we can answer that for you as well. Or the internet isn't very fast. So, all these things, we put them into one report for you so that you can be assured that a property is right for you, whether you're an investor a home buyer.
Ryan: Okay. So the purpose of Microburbs is basically for anyone who's looking at investing in a particular area or if you're looking at a specific property, you can basically go to microburbs.com.au, you can put in the suburb or you can put in the property and it's going to give you a whole bunch of information on the demographics of the area, the restaurants and all the stuff. Basically, anything you would ever want to know and even things you wouldn't even think of about an area. I guess the goal is to make investors confident in their decision and know they're buying the right property, is that right?
Luke: That's right. Yes. Good point. We do areas as well. You can search of suburbs, local government areas, any level, we cover – post codes. Our big thing is that realestate.com.au and domain.com.au, they're great to tell you about the house. So, whether it's got a Smeg kitchen, how many bathrooms it has, but it's not telling you about the neighbourhood. Obviously, majority of the purchase is actually the land value. It's the land that cost money. And land is only worth something if it's near other things.
Renovation can be a great way to get instant equity and make money but first you have to find the perfect property to renovate.
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There is a new, faster, better way to search for real estate online. A better experience with less ads.
Hey, guys, Ryan here from onproperty.com.au, helping you find positive cash flow property. Today, I've got an awesome tool for you guys and an interview with the creator of that tool. The tool is myrealestate.com.au and the creator who's with me today is Nino Svonjia.
Ryan: Hey, Nino, how's it going?
Nino: Hi, Ryan. Good, yourself?
Ryan: Very good. Now, you guys know when you go on to realestate.com.au or you go on to domain.com.au and you search for a property, the search listings aren't always the best. They're not organized the best. There's often those sponsored listings that get in the way that aren't in the same suburb or the same price range that you're searching for.
Searching for properties online and finding a decent property can be extremely difficult and Nino is trying solve this problem with his tool, which I just discovered the other day, called myrealestate.com.au, which you guys can be able to check out.
So, Nino, talk us through what is myrealesate.com.au and what are you guys trying to achieve over there?
Nino: Thanks, Ryan, First of all, thanks for having me on your show. It's great to be here. MyRealEstate is a completely new kind of search engine for all listed properties in Australia. So, it's very unique, it's very different than anything that's out there. What we're trying to do is gather all of the listings that are advertised out there and put them together in one place. More like a traditional search engine rather than a property advertising portal. So, we want it to be fair. We want it to be fast and easy to use.
Ryan: Yup.
Nino: You mentioned some of those points there around fairness. We see a lot of that as we gather some of that data. Sometimes, prices can be put in a price range where they don't belong to, just so they're trying to attract more users to click on them, and this is really not fair for the buyers.
Ryan: Often times, I'll do a search and stuff will come up that's listed as "auction" or it's listed as "no price" and it's not actually really in that price range. I can tell just by looking at the property. This property shouldn't really be shown to me in the price range I'm looking for.
Nino: That's right. The reason for this is because some of these websites have the ability to specify a hidden price or a hidden price range so that they can still appear in search results. This is not fair because this is a little bit deceptive behavior and often, what advertisers do is put lower price ranges because they're trying to attract more buyers. With myrealestate.com.au, we just have a single price.
You either have it said or you don't. And, we try and be very transparent about showing that to the users. In fact, if the price is not said, we try and penalize that and push it down because we think that if an advertiser hasn't put a price, usually, they try to involve in some tricky behavior. Otherwise, it's either too expensive, the vendor wants too much money or they're trying to fish the market, or something like that.
Ryan: Okay. So, let's talk through the search software because I've had a little play with it, but not a massive play with it. I like some of the tools because you can search using keywords. So, I can search for things like "yield" and properties where the real estate agent has "rented", the yield will come up. Or, I can search words like "rented for" and then properties where the real estate agent has s...
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Analysing a property market and understand what areas are likely to grow can be difficult. In this interview with Jeremy Sheppard from DSRdata.com.au we learn how to use data to find the best places to invest.
One of the hardest things to do as a property investor is to know how to analyse a property market. We can look at so many different suburbs. We can look at different cities. But it's really difficult to know – is that area actually going to grow in value or is it going to stay stagnant or decline?
So, today, I did an interview with Jeremy Sheppard from dsrdata.com.au. He is my go-to person when it comes to understanding how data impacts our view on a suburb and impacts whether we think a suburb is likely to grow or not.
There's a lot of people out there touting wisdom about population growth and income statistics and all of this sort of stuff, but often, the advise they give is actually wrong. And Jeremy has his counterintuitive approach where he really looks at the data, really understands what the data means and how it's going to affect a suburb. And he displays all the data for free over at dsrdata.com.au.
So today, I got on the line with him and we discussed a whole bunch of things about how to analyse a property market. We looked at a lot of different things. Originally, I was going to break this up, but it was such a good interview, I decided to leave it all together. Here's a short list of some of the things that we're going to discuss.
We look at the DSR Data story, so why did he start DSR Data? What's so great about demand and supply and why is that important? We look at is capital growth sustainable? One of the things people say is if an area has grown in the past, it's going to grow in the future. That may not actually be true. We look at how to analyse a property market using his tool and using other data. We look at whether or not population growth causes capital growth and the answer is, no, it actually doesn't, but we talk about that.
We look at whether or not the property clock is a bogus idea. I really like this part of the interview where we talk about whether or not we think the property clock actually has merit, or is there a better way to look at things? We also talk about how to estimate the peak of a market, so we're not buying at the peak and then prices drop. We also talk about why we may not actually need to buy properties under market value.
We discuss a whole bunch of other different things as well, but I'll leave it with you for now. Here's the interview with Jeremy Sheppard from dsrdata.com.au.
Ryan: Okay. Well, let's start. So how did you get into property analysis, data analysis or suburbs? What caused you to start your site DSR Data?
Jeremy: First of all, getting into the data. I found myself spending a lot of time researching and I also wanted to keep things objective. I knew that a numerical basis for property investing is a good idea for objectivity because the numbers don't have emotions and it helps me keep my emotions out and prevents me from making subjective decisions. But the other issue was that I wanted to buy in the best places in Australia and there's nearly 16,000 suburbs.
So, how do you go about filtering that down? Having an automated tool just zips through all of them, looking for at least some positivity in certain statistics. That, to me, it just struck a cord and I found myself gathering the same sort of data all the time for individual suburbs,
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How can you find a good suburb to invest in? A suburb that is likely to go up in value, one that is low risk and has the potential for capital growth.
So you want to invest in property. Obviously, you want to choose a suburb that has minimum risks and the potential for maximum returns but what are the steps that you need to take to actually find a good suburb to invest in?
What are the steps that you need to take to find a good suburb to invest in? 1. Start At A State Level The first thing that you need to do is to start broad. What most people do is they start from the ground up which is the wrong approach.
They will find a property, someone might send them a link and say, "Hey, look at this property" or they might say, "My uncle is selling a property and you can buy it. If you don't go through a real estate agent he will give you a discount."
And so for one reason or another, you end up starting at the property level and you then need to work your way up to understand, "Okay, is this a good suburb to invest in? Is this property a good price?"
But what tends to be a better way to approach things is to actually start broad, so start at a state level or start at an area level. 2. Narrow Down To A Major District Let's say you decide to invest in Queensland, then let us first assess Gold Coast, Brisbane, Sunshine Coast, Hervey Bay, maybe some regional areas as well.
Assess them as areas and first understand, "Okay, what kind of area do I feel comfortable with and want to invest in?"
Analyze your area and look at things like past capital growth history.
Look at the potential trends for the area moving forward. Look at the demand-supply for the area. Look at vacancy rates in the area and things like that.
You can also go to council websites and you can try and assess what infrastructure developments are going into an area.
Is the population growing or declining?
What you want to do is to start to whittle down the area so you just have a couple of areas you want to look at. 3. Start Looking At Suburb Research Then you start going into the suburb research. What I advise is to do research on a lot of different suburbs, not just one.
The way most people approach finding a good area to invest in or finding a good suburb to invest in is they say, "Okay, here is a suburb. Suburb X. Is this a good suburb to invest in? Yes or no?” That is one way you can approach it, but it's probably not the best way.
It is very difficult to collect enough data to understand if one suburbs is a good suburb to invest in. It is very difficult for the average investor because you may not understand what all the data means. Maybe you don't understand exactly how to research a suburb.
What is a lot more effective and a lot easier is to spread out and you look at all the different suburbs and actually compare those suburbs to each other. Look For The Best Suburb In The Area Let's say you decided the Gold Coast was a good place to invest. Rather than saying
"Okay, the Gold Coast. There is a suburb in the Gold Coast called Robina, do I want to invest in Robina, yes or no?"
That is the old way to do it. The better way to do it is to say:
"Well, what are all the suburbs of the Gold Coast? There is Robina. Mudgeeraba. Burleigh. Broadbeach. Surfers Paradise. Southport. Which of these suburbs is going to be THE BEST suburb for me to invest in?"
Collect all of the suburbs, do research and data on all of the suburbs and then lay them out in front of you and compare them ...