2 Properties To Financial Freedom: Quickly Explained

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 best suburbs within those markets that have the best chance for growth but that are also the lowest risk as well so we want to invest in the best potential suburbs and the best properties within those suburbs so avoiding properties on things like Main streets or right next to train lines or right underneath powerlines and things like that so you can't just do this with any property in Australia it needs to be a very high quality property and taking the time to choose the exact right property is extremely important with that said let's have a look at some of the figures for what these sorts of properties look like this is what clients have pumped on property are doing today is that they'll go ahead and purchase property number one for around about $400,000 that then rents for around about 420 per week they'll go ahead and then build a granny flat on that property for 120,000 which will rent for about 280 per week so the summary there is the total cost is five hundred and twenty thousand which rents for seven hundred per week so you're looking at about a seven percent rental yield and given current interest rates this property would be positive cash flow or cash flow neutral meaning that the rental income not only pays for the expenses on the property but it also pays for the interest repayments on the property as well as the principal on the property so these properties will be paying for themselves and paying themselves off we then go on to property number two and Chikara it's exactly the same okay purchase price four hundred granny flat build 120 renting for a total of seven hundred per week so once you go through this process you now own two properties but you're getting four incomes from these properties this is what we call our foundational properties because these are their foundation for our financial freedom so once we purchase these properties we don't have financial freedom these properties are just paying themselves and they're paying for the mortgage so they're not putting money into your pocket but they're paying themselves off and eventually will completely pay themselves off the key idea here is that once you've acquired your foundational properties in the work hard' phase you've now effectively set yourself up for financial freedom so you're not financially free now the properties are just paying for themselves they're just covering their mortgage but they are paying themselves off so over the next 15 20 25 years these properties will eventually completely pay off the mortgage and when the mortgage is paid off you can then live off the rental income so these properties are positive cash flow and they will go on to pay themselves off for you so the tenants are actually paying the mortgage and eventually you'll earn the property outright at which point you can live off the rental income if you want more help on getting clear on how this strategy can work for you then we are offering free property strategy sessions this is a one-on-one session over the phone where we talk to you about your current situation what your goals are and how to bridge that gap and what steps you need to take to achieve your property investment goals so if you're interested in that go to onproperty.com.au/session and you can book a time over there that suits you now a lot of people may be saying or granny flats that sounds a bit weird but it's actually not weird people absolutely love granny flats in the markets we're investing in high-quality metro markets granny flats offer a very affordable solution to people we're talking about a two-bedroom granny flat that is really nice so you're going to have two incomes on your property they'll be rented separately the tenants will have private access private garden so they won't share a garden or anything like that now you can have granny flats where people do have common areas and common yards and even that is fairly easy to rent as well so you've got separate rents they have private access think of like a brand-new two-bedroom unit would it be difficult to rent a two-bedroom unit in a high quality area in a metro market like Brisbane would that be difficult no this is a two-bedroom unit with a beautiful deck and a small yard as well so it's like a two-bedroom unit but a better version of a two-bedroom unit and the front house still rents fine as well it just has a smaller yard so the front house people are obviously aware that you're building a granny flat you put up a fence so they have their own private space as well so granny flats while they may sound a bit different and you can't do them in some areas like in Melbourne I think you're not able to do them at the moment they are actually quite common and people love living in them and they're very easy to rent so again if you want more clarity on this strategy and how it can apply to you and how you can set yourself up for financial freedom go to onproperty.com.