On Property Podcast

[arve url="https://www.youtube.com/watch?v=9u6Zco4zHoE" mode="lazyload" align="center" /] 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, a small increase in interest rates of one or two percent can significantly affect your cash flow to the version of $380 per week on a million dollar loan. Um, which is a lot of money to find. So you might need some buffers in there. You might need to prepare for this just in case interest rates do go up. So it's really good that when you're looking at property that you kind of do this analysis. So let's go ahead and do some analysis on a couple of properties and we'll see how much buffer is there in this property in terms of interest rate rises. So let's start with this one here. We've got one in Muscle Brook in New South Wales for $218,000. That's currently at 3:25 per week. So let's punch that into the calculator. Turn 18,000 at 3:25 per week. And so we've got an interest rate of five percent, which is giving us weekly cashflow to brand 38, $39 per week. So let's go ahead and raise that up to six percent. And we can see our cash flow has dropped to five point three, $3 per week. So if we now go six point five percent, we'll see we're in the negative. So let's go six point two, five percent and we'll also in th

[arve url="https://www.youtube.com/watch?v=-CVHFEY6c6Y" mode="lazyload" align="center" /] 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. But it was also. We were maybe six months out from moving into the band when we started looking into this seriously and it was very much one step at a time. For us. It wasn't, okay, let's like become complete minimalist center and they have one chair straight away. Everybody else did on the floor. It was like, let's tackle one thing at a time and we found the easiest place to start was our wardrobe. I had an entire big box full of old clothes and so went through that. Basically threw everything out except like one pair of shorts. I think maybe two pairs of shorts that I absolutely loved. And then we kind of kept the things that we loved, but we reimagined our wardrobes to think about what do we love to wear, what are the things that we love to wear and let's just buy that and let's just wear that because they say you only wear like 20 percent of your wardrobe anyway. And so that was like an easy place for us to start as well. It was kind of like a mindset shift from I have to wear something different every day to what do I love to wear and I feel so good in this that I want to wear it every day. And like I don't care if I'm wearing the same thing everyday. Like Steve Jobs, like we went that way didn't we? And s

[arve url="https://www.youtube.com/watch?v=C3HaJ54xzJ8" mode="lazyload" align="center" /] 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 ultra marathons or ultra triathlons and they're just doing these really crazy distances to try and work out what does it take to become the best. And just got really fascinated with this idea of ultra marathons kind of thought, you know what, I would never be able to do that. That just sounds too hard. So it never really set that as a goal. And then recently read a book that was all about like the psychology and physiology and all this science behind people who run ultras or people who run marathons found it really fascinating. And unlike, you know, what I would like to run an ultra marathon and give that a go. So that's kind of like the journey that I took to get to the point where it's like, okay, I would love to be able to push myself to be able to do that as well, grow my ability and my emotional strength in order to be able to push through and do that. So I thought it would be a good challenge for me to try. And so I talked to people about this and I say, you know what, I'm fascinated about ultra marathons. I would love to run an ultra. There's one coming up in about four months time called the black hole, 100, which is 100 kilometer race up here. I think it's just north of whe

[arve url="https://www.youtube.com/watch?v=TxWgyklbM7I" mode="lazyload" align="center" /] 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. There will be single people listening to this as well. But like I think really what it's about and it's that happiness and contentment in life. So the earliest I can remember is when you quit your job. Yes. Yeah. That was the people that. Okay. So I was working as a pharmaceutical rep earning good money, six figures as well as commissions as well. And so we had earned enough commissions that we had paid off a large chunk of our debt. We paid off our debt completely because you have debt when you just live emotionally, just when you get married young. And she's not to work for some reason, the bank gave me this big credit card, a loan for a car and then all of a sudden you're in heaps of debt. So we had paid off our debt. We were saving towards a house and I think we're one or maybe two commissions away from a house deposit quarter, like three months and we would have had a house deposit earning enough money to borrow from the banks as well. So we definitely could have bought a house and we would have been. And then we chose to give all that up. We quit and moved up to the Gold Coast and I it. Why did, why did you quit? So you quit because the job was like creatively sti

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 week and I was saying to him, have you done big data analysis on where people are buying the landlords of buying their properties? And they said on average then within 15 kilometers from where they live, so we are parochial animals and we think we know what we know. But when it comes down to really knowing a suburb and you have someone challenges you on, you know, what's the growth rate for the last three, five, 10 years, you know, what's the yield, what's the average vacancy rate, what's the percentage of rent? It's one of the best streets of buying. People kind of go, oh no, I don't know that, but I really know the suburb. And as you said, you know, there's this portfolio killers and every single day, you know, we come across people that have, they're just disappointed that properties haven't performed. And usually it's one or two or ev

[arve url="https://www.youtube.com/watch?v=UG9nNScCOBg" mode="lazyload" align="center" /] 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 build the granny flats, you should effectively being in a cashflow neutral position, which means the properties aren't costing you anything and they're paying off the debt as well as rents go up over time, you'll move into a cash flow positive position where the property is paying off the debts and can put a bit extra into your pocket or you can accelerate and pay off those debts faster with that extra money. So basically you purchasing these properties with deposit that you've saved up yourself and then you borrowing the rest of the money and then these properties will pay themselves off over time and eventually when they're paid themselves off, you can now live off the cash flow and so effectively the cashflow bought those properties for you and then you live off the cash flow in the end. And so never at any point do we need to sell these properties to access any capital growth in these properties. We just did it all with cashflow. So it is possible you don't actually need capital growth in order to achieve financial freedom. Assuming that you can save the deposits, you need to buy your foundational properties. Now in this situation, we still want to be purchasing properties in high growth

[arve url="https://www.youtube.com/watch?v=xVzvDkMpZ3k" mode="lazyload" align="center" /] 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 achieved financial freedom, was really struggling with that. So I'll leave the links to that in the description down below. But yeah. So what does it feel like to be financially free? Well, it's not what I thought. I thought achieving financial freedom would be this pot of gold at the end of the rainbow, that I would achieve financial freedom. And when I didn't click your fingers, I would be instantly happy. My life would be incredibly magical. I would have no issues at all. Everything would be great. And so I don't know why I thought that because life obviously it doesn't work like that. But yeah, there's no pot of gold at the end of the rainbow. In fact, I, when I achieved financial freedom, I went into a deep dark depression, which I'll talk a little bit about, um, but basically achieve financial freedom. And I had no goals set for after that because I thought I was going to be happy at the end of the day. So I had no goals, no direction for my life. And one of the big challenges of financial freedom is that you now have to make decisions about things you never even had to think about. And this sounds really weird, but the fact that you're choosing to go to work now, if you choose to go to

[arve url="https://www.youtube.com/watch?v=CpXXuKquOMk" mode="lazyload" align="center" /] 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, but basically the mixture of realizing that my credit card is a huge liability as well as this new banking system. I don't need a credit card anymore. So let's talk about the liability aspect of it and how that's affecting my financial freedom and how it might be affecting your financial freedom. And then we'll talk about simplifying our banking and why I don't actually need a credit card. So my credit card, the one that I showed you guys, I'll just cover the numbers here, but this is a sin George credit card. I think it's vertigo or something like that. Um, yeah, so it's barely go on it. This car costs $55 per year to have so $55 a year just to have this card and then the interest rate on this card, 13 point seven, four percent. Now most of the time that we've had this card, it has been maxed out. Okay. We have times where we clear it, but generally speaking it's either max out or it's about half full. And so we are paying interest on this currently it's only like 30 percent of Australians actually pay off their credit cards in full. So most of you will probably have a credit card you don't pay off in full. So we've had this card and had it maxed out for quite some time. And the i

[arve url="https://www.youtube.com/watch?v=kwaAHOFJn78" mode="lazyload" align="center" /] 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. Twenty percent of that is going to go to expenses. So you've got your rental manager fees, you've got council rates, you've got insurance, you've got maintenance. You've got water, you might have strata or body corporate fees if you have a unit, and there's some other expenses as well, so a good kind of mark is about 80 percent of the rental income. After you pay your expenses will go into your pocket. So that's what we're going to work out today. Obviously every property is different, so sometimes more goes into your pocket, sometimes less, but let's say you want to earn $100,000 per year after you've paid your expenses on these properties. So you want 100 grand a year coming into your pocket. How do we go about making that happen? Well, assuming that 100 grand is going to be the 80 percent, so after expenses we actually need to be earning $125,000 a year roughly in rental income in order to have the financial freedom of that level. Now obviously you can drop this down to $50,000 per year, 40,000, 30,000. I tend to think that once you achieve financial freedom, most people don't want to completely stop work, but they want to work in something that they're really passionate about, but once people achieve fin

[arve url="https://www.youtube.com/watch?v=PyQtkKPCAXI" mode="lazyload" align="center" /] 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, you didn't mention anything about whether put in the 60 percent of your pay or income each time. And so what's the plan there? What do I do? So what the barefoot investor recommends is that when you get paid, 60 percent of your money goes to everyday spending, 20 percent goes to a fire extinguisher to pay off debts and to put out financial fires, 10 percent saving for things that make you happy and 10 percent for a splurge account. And so I kind of altered that a bit. So what I'm gonna do is we're going to look at that in more detail and how exactly the money flows and how I set that up. So I run my own business, that's how I generate an income. And we also received some family tax benefit from the government and anyone that is employed, you know, this would be your employment and so my business pays us a weekly amount so each week money comes from my business and goes into a bank account that we've called the pot and so there's a card attached to this bank account, but basically each week money from the business, it goes into the pot and also family tax benefit is fortnightly that goes into the pot as well. So all of our income is going into this one account and then what we do is we then

[arve url="https://www.youtube.com/watch?v=aN70nowp1LU" mode="lazyload" align="center" /] 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. And so we thought, you know what, we could double down on the Gold Coast, we could purchase the house like most people do. We could choose security, but we're not happy right now. And so let's choose freedom. Let's find the place that we're happy. And then if we want to settle down then we'll do that in the future. So we made that decision, we made that gamble and that ended up bringing us up here to Noosa in Queensland. We absolutely love it here. We found a Montessori School for the kids. They love it. We feel really settled here. And so we chose freedom many times. I'm not saying that you should, but a lot of people just don't realize that often they're making that decision whether they're going to choose freedom and financial freedom or potential financial freedom if they invest well or security in owning your own home because owning your own home doesn't give you financial freedom if you own your home and let's take it to the nth degree. So let's take it 25 years down the track when we paid off all our debts and everything. If you own your own home and you pay off all your debts, then okay, you're not paying rent, you'r

[arve url="https://www.youtube.com/watch?v=4AM9QcGkkAM" mode="lazyload" align="center" /] 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. They're paying for themselves. They are going to go on and just work behind the scenes and deliver you financial freedom in the future. So you've got this base, these foundational properties that will deliver financial freedom so you have financial freedom, but not yet. So it's going to happen in the future, but it's just not happening right now. And so what most people will do is they'll then just white. They'll wait until the properties pay themselves off and they're financially free and so they'll work in their jobs for another 10, 15, 20 years doing something they hate and seriously, life is so short to be doing that. I remember working in pharmacy, working with a pharmacist. She was 55 years old heights, hated her job. Absolutely hated it. Being a pharmacist. I like, why don't you go and do something else? And she's like, Oh, I've only got 10 years left. So what's the point? Like 10 years. Are you freaking kidding me? Ten years. You've only got 10 years, only 10 years. Ten years is a fucking long time. Oh, I just hate seeing people waste so many years of their lives. Like it's just dumb. So dumb. A

[arve url="https://www.youtube.com/watch?v=B4HMZKUO0lY" mode="lazyload" align="center" /] 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 you. They're paying for themselves. They are going to go on and just work behind the scenes and deliver you financial freedom in the future. So you've got this base, these foundational properties that will deliver financial freedom so you have financial freedom, but not yet. So it's going to happen in the future, but it's just not happening right now. And so what most people will do is they'll then just white. They'll wait until the properties pay themselves off and they're financially free and so they'll work in their jobs for another 10, 15, 20 years doing something they hate and seriously, life is so short to be doing that. I remember working in pharmacy, working with a pharmacist. She was 55 years old heights, hated her job. Absolutely hated it. Being a pharmacist. I like, why don't you go and do something else? And she's like, Oh, I've only got 10 years left. So what's the point? Like 10 years. Are you freaking kidding me? Ten years. You've only got 10 years, only 10 years. Ten years is a fucking long time. Oh, I just hate seeing people waste so many years of their lives. Like i

[arve url="https://www.youtube.com/watch?v=KL3KKrH39RI" mode="lazyload" align="center" /] 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. So distracted by trying to make money, trying to build wealth, all of that sort of stuff. You've got kids in school, it's really busy and you get really distracted. Just doing that. Like you focus on that and show you got to do it. I remember I used to be a pharmaceutical rep and my wife went after we had our second kid, she had postnatal depression quite badly. Really struggled to get out of bed some mornings but I 8:00 or 8:30 in the morning and then I would need to drive onto territory as a pharmaceutical rep and go to my job. And if I didn't go to that job, then you know we wouldn't be able to afford to live and pay our bills and buy nappies and feeding our children. And so despite the fact that Chicago needed me home and she needed my help, I had to go to work. And so for a lot of people out there that will kind of pull you through life and you just focused on it because you have to do it. But as soon as you don't have to do it and you have financial freedom to everything changes because if you're going to work, you're choosing to go to work, which is really different and you don't expect it to be so different. But it is. And I will get to the dream home i

[arve url="https://www.youtube.com/watch?v=3jJT6_EPTvw" mode="lazyload" align="center" /] 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 to do. I think neither of us are the people that really want to give up a lot of things. We even with over budget this week. Right. And we'd go to this for Joel found this awesome organic farm and they've got like a concert that they had that was sold out and they're doing another one in a couple of months and it's going to sell out as well. But there's tickets at the moment. So it was like $70 for a family ticket. I'm doing that, I'm paying for that because that's going to sell out and I can't wait until the budget resets tomorrow. Well, I probably could, but I think that's the thing. It's like we can see the value that experience will have that. So we just throw the budget out the window. We do that because you know, it would make us happy. Doing those things makes us happy and that happiness thing is so important to us now. I think for a long time because we hardly ever fight but we do fight when we have new money and we only ever worst fights it just about money. So I think that's of why we been watching for a long time a

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. So you've now got two houses and you've got to granny flats that are delivering you for incomes that a cashflow neutral or cashflow positive. You have a principal and interest loan on these properties over a period of say, 25 years. And the thing that's so powerful with this strategy is you purchased the properties, you build the granny flats, the properties basically pay for themselves and they're also paying themselves off over time. So in 25 years, if you just left it, you let the property pay for itself in 25 years it's going to pay itself off when that happens. And you no longer have a loan, you no longer paying the bank, that rental income now goes into your pocket and you become financially free once they're paid off. So it's a pretty simple strategy. You just purchased two high quality properties in good suburbs in metro markets. You&

[arve url="https://www.youtube.com/watch?v=zgZho05YzPs" mode="lazyload" align="center" /] 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. Start asking yourself big questions and trying to come up with the answers, but don't get all stressed about it. If you don't come up with the answer this week or today or this month, that doesn't matter. That's not what's important here. It's the habit of asking yourself big questions and getting in the habit of trying to solve big questions because you need big answers and solutions in order to solve those big questions. But getting into the habit of asking big questions is going to expand your mind, but it's also going to expand your financial situation as well, and so I just want to encourage you with that today, go out there and start expanding the questions that you're asking because that is going to do more for you than answering the questions that you currently have because chances are the questions you currently have just aren't big enough and truthfully they're not worth answering. It's not worth wasting time trying to answer the questions, so spend more time thinking of better questions to ask and spend less time trying to answer the questions that you already have. That's it for me today. I am going to go and get this pizza. I wish you the best out there. I wou

[arve url="https://www.youtube.com/watch?v=307hhWMg9HM" mode="lazyload" align="center" /] 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 taking on too much risk or debt. And uh, Ryan's finally figured that out. Yeah. Well, and I'm big on the idea of simplicity. Like so many people talk about the logical way to make the most money through property and capital growth and flipping properties and complex strategies and things like that. But I also know a lot about people and how people get very overwhelmed about how we don't. Like, I am proof that people don't live on logic alone. Like I'm a very emotional person and we'll work off emotion and so something that you can line up with people's circumstances and people's emotions and changing lifestyles and stuff like that as well. Because even a lot of the strategies like capital growth where you negative gearing. Like what happens if you wake up tomorrow and you, you hate your job or you get made redundant or you get fired and now you're negatively geared to the hill and you've got an income coming in. So I'm always like on the idea of flexibility, simplicity and actually like playing to our strengths as people who have the notion rather than like trying to be vulcans will live long and prosper rather than Trinity Volkans and just live with logic only and infested with logic only

[arve url="https://www.youtube.com/watch?v=ceCXvWt1E5U" mode="lazyload" align="center" /] 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 $2,618 and ninety six cents. So let's work out how much that is per year. So we can see that that would be $31,400 per year. So that's an extra $9,000 per year that you would need to pay and that will obviously be paying off your homeland. I prefer doing interest only at the moment. You can get some pretty good deals on principle and interest loans and so if the interest is better than obviously that is a good option to look at, but I like calculating interest only because I believe that any extra money that you're paying off your mortgage, you're building that in equity that's going towards your wealth. That's extra cashflow that you're choosing to put on your loan. And so I still see that as positive cashflow myself, but you might want to do principal and interest. So anyway, we're got interest of $22,400 per year so far and we've got rental income of about $40,000 per year, but that's not all. That's what a lot of people do. They just look at the purchase price of the property and what the repayments are going to be and if they see that the rental income is greater than the repayments are like sweet, this is going to be positive cash flow. But th

[arve url="https://www.youtube.com/watch?v=Be5ZVMpPS5E" mode="lazyload" align="center" /] 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. They also go towards a sinking fund ideally, which is a big pool of money that's there for big expenses when they come up, like fixing an elevator or fixing a roof or things like that. So body corporate levies, $2,131 per annum. So we're going to go in this calculator at property tools and we find our Australia body corporate here and we'll put in that figure 2000, $131 per year. And we can now see that cashflow has gone from being positive $39 per week to being negative $1 62 per week. Now dollars 60 to negative. Not too bad if you didn't have vacancy, because I've got vacancy rates of five percent in here, so if you take away vacancy, then you could still generate a positive cash flow with this property. So as you can see it's still possible with units it's just harder because you've got that extra fee of the body corporate and startup. So that's just something to think about. Quick little episode today that if you are looking for positive cash flow properties, units can be harder to get positive cashflow than houses. So if you have a unit that has the same price, same rental income as a house, chances are the house is more likely

[arve url="https://www.youtube.com/watch?v=38_s7qzm-3A" mode="lazyload" align="center" /] 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, 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. So this was for sale for $149,000. So pretty cheap property and it's currently rented or it says previously rented at to 60 per week. So what I'm gonna do is go over to property tools.com dot EU and I'm going to use the advanced property calculator over there. This is a property cash flow calculator that I created myself. So you put in purchase price, rental income and it will give you an eeg, an estimated weekly and yearly cash flow. And you can also look at adjusting all the fees so you got property manager fees, expect a vacancy repairs and maintenance, insurance council rates, bank fees, all that good stuff. So basically you can go through and you can add in all the expenses and it will give you a rough estimate of the weekly cash flow of a property. So this was something that I was doing all the time, s

[arve url="https://www.youtube.com/watch?v=SuZn67xQAuI" mode="lazyload" align="center" /] 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. So this was for sale for $149,000. So pretty cheap property and it's currently rented or it says previously rented at to 60 per week. So what I'm gonna do is go over to property tools.com dot EU and I'm going to use the advanced property calculator over there. This is a property cash flow calculator that I created myself. So you put in purchase price, rental income and it will give you an eeg, an estimated weekly and yearly cash flow. And you can also look at adjusting all the fees so you got property manager fees, expect a vacancy repairs and maintenance, insurance council rates, bank fees, all that good stuff. So basically you can go through and you can add in all the expenses and it will give you a rough estimate of the weekly cash flow of a property. So this was something that I was doing all the time, so I just made this tool to make life easier for myself. So let's have a look. One hundred and $49,000 as punch that in and then we'll punch into 60 per week. And this gives us an estimate of weekly cashflow of $34 and nine cents. And a rental yield of nine point. Oh, seven percent. So nine percent rental yield. That is a very high rental yield. You don't find a lot of properties on the ma

[arve url="https://www.youtube.com/watch?v=ICfPwadNmuI" mode="lazyload" align="center" /] 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? Let's just say we stripped society away. I've got this $10 note and I've got this $5 note. All right, the two pieces of plastic. Let's say that there is no governing body. Australia doesn't exist, the government doesn't exist. I'm just in the bush or something, I dunno. and I've got these two pieces of plastic. What are these pieces of plastic good for basically nothing, right? And then what is to say that this blUe piece of plastic that's a $10 note is worth more than this pink piece of plastic? That's a $5 note. Well, It's slightly bigger, it's a tiny bit bigger, but in actual fact it's worthless plastic. I could take a plastic bag from woolworths and you know, it's kind of similar. If I was in the bush, plus you back from woolworths is actually probably more useful. Can carry stuff in it, maybe still some water in it, use it to catch water, that sort of stuff. So. So all of it's essence. Something to first realize about money is that it's a construct. Okay. The plastic itself is not that interesting. It's not that valuable, but it's the value that we believe that plastic has that is valuable. So if we

[arve url="https://www.youtube.com/watch?v=u2JAlKUmwpE" mode="lazyload" align="center" /] 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. I haven't read much of it, so I definitely need to get onto that, read that and share some of the stuff that I find in that with you guys. So the barefoot investor stuff in my own twists. What's helped me most was the following. So he's even written out a full point list for us. Nick, you are awesome. So tip number one, identify a baseline. I went right back to November 15, categorize every single dollar I spent and the result was I haven't eaten Mcdonald's since I'm a fit dude, but would have to drive past McDonald's everyday coming home from work and the chocolate thick shakes a flipping delicious. Yeah. Once I realized how much money I was wasting on them, it was only too easy to give them up and now fill my water bottle up every time I leave work. So I cannot feed myself some lies about being thirsty on the way home. I now know on average how much are you spending on groceries, car, eating out entertainment, etc. Every month. And so I could sEt realistic goals for each category and you're going to stop there because this is one of the problems that I have with. So I had mentioned my favorite money management a

[arve url="https://www.youtube.com/watch?v=FZujuLhSvkY" mode="lazyload" align="center" /] 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, I've always put away a certain dollar amount as, as I've earned more. I've tried to increase that dollar amount a little bit. And it's funny when you, when you saving 20 grand a year or 40 grand a year, all of a sudden every couple of years you have a deposit for another house or shares or super or wherever your financial advisor tells you to place your money. I'm aware. Have you decided you decided to place your money where to place your money and you know, like you've got to do something with that money because it's not doing anything for you in the bank and you know, my tendency was if I didn't have a plan for it, for the pain myself, first money, I'd always find a way to go and a good holiday or do something else with it. So it was much easier to just have that plan and just stick to it if you know what I mean. Yup. And so that's kind of what the way that I'm approaching it in my life because I know that when it comes to saving, like, but I know that budgeting isn't my strong point so I can get real with myself and I can say that throughout my life this has. I haven't been very good at this. I was great at it when I was

[arve url="https://www.youtube.com/watch?v=Wlko-iUtPJs" mode="lazyload" align="center" /] 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 point doing that at the moment. What we're doing in here is we're going to be tracking our weekly discretionary spending. So this is money we spend on food entertainment. I've been spending a lot of money on medicine and doctors appointments slightly because I've had pneumonia, etc. And so this allows us to do weekly, which is great. Not A lot of the apps do that. You can also set your start date for whenever you want your budget to start. Previously we've done monday or we've done saturday or friday to start our budget. We're going to trial doing sunday because that way when we get to the weekend, if we've run out of money for the week or we're getting close, we can have a tight day on saturday. But then sunday we'll start our budget are fresh and so if we want to have a good time on sunday we can. so that's our thinking behind that. You can set the time period, budget mode. I suggest you turn on, you don't have to turn it on, but this allows you to set a budget for how much you want to spend for the week. So for a single person living with their parents, they might only want to spend $100

[arve url="https://www.youtube.com/watch?v=0wocMB6wst8" mode="lazyload" align="center" /] 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 where they want to manage money, they want to save money, they want to get better at this sort of stuff, but they've tried things in the past and they're tried budgeting in the past. They've tried the envelope system or the. They've tried allocating percentages to different parts of their lives and that just hasn't worked and so hopefully I can try this myself, come at it at a new angle and that we can learn about money management together. So I guess the call to action for this video, if you know any good resources that you think could be helpful to me in terms of money management, in terms of ways to approach this, please shoot me an email, [email protected]. I would love to hear from you or if you're on youtube or leave a comment in the comment section down below linking to other youtube videos that maybe have good tips or books that you've read or articles that you've read or things like that. If you guys can link it out. When we can start to build some resources on money management. Maybe I can have some of these people on the podcast and we can learn from them because this is a skill that I'm going to need to work at. But I'm also

[arve url="https://www.youtube.com/watch?v=6Ogwd99aqLo" mode="lazyload" align="center" /] 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, this property clock is super-simple to look through basically at 12:00 is the peak of the market. So that's when property prices are peaking out. We then go into starting to decline and a declining market at 3:00, then we've got approaching the bottom of the market and the bottom of the market at 6:00. So if you're listening to this, just imagine the clock there and then you've got on up towards 9:00 you got that rising market or between six and 9:00 you got the starter recovery. So this is kind of where you want to be. You're going to be at the start of the recovery or in a rising market. So again, that a rising tide lifts all boats. So that's kind of where you want to be. Um, and then you've got approaching the peak of the market and back to the peak of the market. So it's important to know that they're not always right. I think a couple years ago they had Sydney at the peak of the market and then obviously Sydney still had a few years to go before it actually peaked out, so they definitely can be wrong. So take this with a grain of salt, but this is a great place to start, especially if you know nothing about what's going on in the Australian propert

[arve url="https://www.youtube.com/watch?v=i8uvAniuAf4" mode="lazyload" align="center" /] 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, then you can almost invest in anything in that suburb and chances are it's going to go up in value because a rising tide will lift all boats. But if you don't have those skills, so if you don't choose the right region or don't choose the right suburb, then your chance of having success is going to be less. Sorry, Google talking to me in the background, I don't know why. So that's going to decrease your chances of success. Now that's just two skills that I've looked at. There's also inspecting properties, there's talking to real estate agents, negotiating with real estate agents, working with solicitors and conveyancers, all of these sorts of things. So there's so many different skills that you need in order to successfully invest in property. And the problem that I think we have is that we go on websites like this and we read articles about the growth in Australia's largest cities. So if we go ahead and check out this article, we can read about that. But that doesn't actually get us any closer to investing in property and we still feel overwhelmed because let's face it, investing in property is pretty overwhelming. There&#039

[arve url="https://www.youtube.com/watch?v=sGOvoeG5rM8" mode="lazyload" align="center" /] 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 can really do about that. They're in China, I'm not going to go over there and try and catch them or anything like that. And I was in a situation where I was out a lot of money and I decided to do the right thing. I had a couple of returns, but I think I'd send out about 30 USB sticks or something at the time and had a couple of returns but not a lot. And so I basically contacted everyone that I had sold this to and said, look, I've made a mistake. These fraudulent, you can have a complete refund and you don't need to send it back. I didn't want to deal with returns. So I thought that was the only ethical thing for me to do, knowing that I had sold something that was a dud. So I went ahead and did that out of the financial cost to myself. And yeah, I could have in that situation just blamed that company in China and thought this, this company is selling this product to me, how dare they do that? But what I did instead was something that turned out to be completely life changing for me. And that was, I took full responsibility for my part in that. So I took full responsibility that I saw this opportunity, that I didn't take the time to properly test the product that I was importing. I just assumed that it was q

[arve url="https://www.youtube.com/watch?v=umarvg2y_70" mode="lazyload" align="center" /] 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. We don't really understand what we need to do in order to move towards that goal and achieve that goal that we're kind of just put it on the shelf, put it in our trophy cabinet as that's our goal. Yeah. My goal is I'm going to buy a property this year, but you're not actually going to take any action because it's too big. It's too overwhelming, so we need to break that down into multiple steps, but rather than trying to break down the whole thing, which is gonna, take too long and you probably don't have the knowledge that you need in order to break it down. Now, some of you more advanced investors out there, we'll have the knowledge to break it down and you'll know the exact next steps you need to take and all the steps you need to take towards buying a property. But first timers, they probably don't. And so rather than trying to write down every single action that you need to take, what you need to do is workout. One thing you can do to move you closer towards your goal. Just one thing, one little thing. That's it. Okay, so that might be if you're currently in the situation where you have a deposit or you've got equity, but you haven't spoken to a bank

[arve url="https://www.youtube.com/watch?v=O-mlxMxlHe4" mode="lazyload" align="center" /] 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 [arve url="https://www.youtube.com/watch?v=wGuPOUb_WFE" mode="lazyload" /] 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. So when you talking about money like that, it kind of spikes, I guess everyone's interests and it's like my interest. So I started researching into it. I looked into first, okay, how do you buy some of these coins and if you guys want me to do an episode on how you can do that, I've learned how to do that over the last couple of weeks, but also what exactly is this? So I started listening to podcasts. I started reading books about it and stuff like that and so while the massive gains got me interested in it, I then learned more about the technology behind it and it is extremely, extremely interesting. Most people don't know about it. They just think it's internet money or that it's fake money. But then when you look at like the Australian dollar, what's the Australian dollar backed by? What's the US dollar backed by? Money is what people perceive it is and it's as valuable as people perceive it is. And so in that way, bitcoin and ethereum and these other crypto currencies a fairly similar to Fiat currencies in terms of, you know, their value is what people perceive their value is and so it could work just like money. I'm the same way that the Australian dollar works as money and so looking into this, looking into the growth that it's had, looking into the technology behind it, how it's decentralized and how it's very hard to hack the whole system. Basically how it's, I guess outside of governmental control, so interesting stories like Wiki leaks where wikileaks wasn't taken to trial by the US government, but basically

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.

[arve url="https://www.youtube.com/watch?v=Zlgprjlifks" mode="lazyload" align="center" /] 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 really move forward right now, you can take the time to really begin to learn and really learn about the property market, learn how to do it, learn how to research areas, look at the different strategies that are out there so that you can start to think about, okay, which strategy is going to be best for me, and then you can learn about those particular strategies. You've got a really good opportunity because you're really young to really spend this time learning, really spend this time understanding the market and how to make money in property investing, and so that when the time does come and you can borrow money and move forward, you'll be prime and you'll be set, that you'll know, okay, this is exactly where I want to be. Here's the strategy that I want to use to get there. Here's the suburbs that I've chosen that fit within that strategy, and then you just need to find the right property so you'll be primed and ready to go. Use this as an opportunity for learning and for getting yourself set, because then when you are 23 or 24 and you're out of uni, you'll be leagues ahead of everyone else in terms of what you're going to buy. Ben: What you d

[youtube id="zIt53MpP2eU" align="left" mode="lazyload" maxwidth="500"] 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 portfolio that makes them 100 grand a year. Then at the end of the call they're like, "Oh, now I'd like 200k." It's because I've shown them how to make 100k and it all seems really simple. It's just like that's human nature, and in the past I got really caught up on that stuff and you might say that sometimes I still do. Ryan: Sometimes ... Ben: Most of the time, all the time. Ryan: We had that conversation the other day. Ben: That's what I'm thinking. But it's just insane. Yeah, but it depends where you're at in your stage of life. To me, cashflow and passive income has become much, much more important since I met you. In the old days I was more than happy to just have the equity and ride it out to the future, but these days it's kind of like, well, you can have a bit of both if you're smart about the way that you do things. Ryan: Well, that's the thing. I'm so keen on people to get to the point where they can replace their income through positive cashflow, and then you can go from there. If you want to get rich, and you want to keep investing, don't

[youtube id="LfJOr3Y25ss" align="left" mode="lazyload" maxwidth="500"] 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, apart from my YouTube subscribers might have got a notification about it or something like that through YouTube. Next time we'll probably ... I don't know I think it's gone pretty well. What do you think Ben? Ben: I feel like webinars are completely dead and this is it man. I'm heaps excited about going live, because we can actually get really pointy on specific questions. Ryan: Yeah. [crosstalk 00:03:46] Ben: Rather than delivering [inaudible 00:03:48] Ryan: Stuff comes out. Stuff that if we structured a video ourselves, we wouldn't get to. Ben: I really, really like this format. I appreciate everyone's time, it's sick, like there was even someone that showed up. Ryan: Yeah, and the questions that you guys asked are awesome so thanks so much for asking the questions. Next time I think I will market better so we're going to have more people watching so we're going to have even more questions. So it'll be epic. Yeah, I'm going to stop it there guys, thanks so much for watching. You can check me out at onproperty.com.au. I do list and share positive cashflow properties with my members, but I am shutting that down. So if you want to see some real positive cashflow properties that are on th

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 worse condition than you thought after you've made the winning bid. I can't stress this enough. Make sure you've done ALL your due diligence prior to the auction. This includes (but isn't limited to): Market cycle timingsSuburb research and analysisStreet researchProperty specific researchBuilding and Pest inspectionsFlood checkBush fires checkEasement checkSewer line checkTown planning reportTitle searches You need to be really thorough with this type of property purchase. They expect you to come ready to buy (or be prepared to walk away it if it's for you or the price goes too high). There are really good opportunities but no every property sold at a public trustee auction is going to be a bargain, not every property will be sold for under market value and not every property will be suitable to you and your investment strategy. There are some really rubbish properties out there so make sure you do your due diligence so you don't end up with a comp

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.

[youtube id="YlWrFbJydGM" align="left" mode="lazyload" maxwidth="500"] 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. But one of the things that isn't passive is On Property Memberships, so this is something that I need to constantly go out and find properties for, constantly work with customers, whether they want to cancel their accounts, or sign up, or maybe every now and then someone isn't happy and wants a refund, which happens rarely, but it does happen, or maybe there's some error with the system, and people aren't receiving their emails. So, there is constant work that I'm doing every single week in order to maintain this site, and, basically, I came to the decision that I wanted to focus my efforts, rather on this constant maintaining of the membership, to actually do things that will move my business forward and move my passive income forward. So, I want to do more creative things for you guys, for On Property, as well as for my other websites as well, so I want to create more free content, I'm tossing up the idea of doing webinars on how to find positive cash flow properties, and finding them live on the webinars for you guys. I'm throwing around all these different ideas that I'm not 100% sure yet. One thing that I do want to do is start live streaming as well, and doing Q&A sessions. Ideally, I'd like to do it with Ben from

[youtube id="Hps5OZmbbk8" align="left" mode="lazyload" maxwidth="500"] 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 them. So they've got them in handcuffs next to the cop car. I didn't realize, but the neighbors have all been in conflict for a significant period of time, apparently. My property manager has never told me any of this stuff. Obviously, something has been going on that we had no idea about, effectively. Basically, the guy is in cuffs and one of the neighbors gets a fence paling and another one gets a cricket bat and they start attacking people. They're completely cuffed up and the cops have had to call for backup. All of a sudden there's 15 cop cars and 40 policemen there and everyone in the street has now begun fighting police, fighting the tenants. Like, just a full-blown riot. And that's where you heard up to, right? Ryan: Yeah, that was basically it. There may have been some manufacturing happening in the house. Ben: Apparently, they found 8 industrial-size heaters or something like that in the granny flat and some illegal electrical works that had been put in there. I didn't want to ask too many questions because I just don't need this in my life. That's

[youtube id="QGXYjRGncYo" align="left" mode="lazyload" maxwidth="500"] 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. It's when the expenses of a property are greater than it's income, which means you need to pay in order to continue holding that property. Now, negative gearing does get slightly more complicated when we add in the tax benefits that you can get as well as depreciation, which we'll talk about in the next lesson. To keep learning, visit onproperty.com.au for more lessons or simply click a video below to continue. And if you're interested in investing in positive cash flow properties that generate passive income, then join the membership where I share a new high rental yield property every single day. Go to onproperty.com.au and become a member today.

[youtube id="rNOZRyScf2Y" align="left" mode="lazyload" maxwidth="500"] 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. And equity can be used to invest in future properties without having to save a deposit. So if you can borrow money against the equity in property number 1 – let's use our previous example where we borrowed $100,000, you can then take that $100,000 and you can use that as a deposit on your next investment property so you don't have to save a deposit. This allows you to leverage or it allows you to jump from 1 property to 2 properties to 3 properties without actually having to save the deposit every single time. So, equity is really, really important when it comes to moving forward and growing a sizable property portfolio. That's why I thought it would be very important for you guys to understand what exactly equity is. To keep learning, visit onproperty.com.au for more lessons or simply click a video below to continue. And if you're interested in investing in positive cash flow properties that generate passive income, then join the membership where I share a new high rental yield property every single day. Go to onproperty.com.au and become a member today.

[youtube id="voBpwAEb2_M" align="left" mode="lazyload" maxwidth="500"] 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 while you don't have a job. But, if you're negatively geared and had to pay for that property, if you lost your job, you could be in a very bad position. I love that positive cash flow can lead to financial freedom, but I also really love that positive cash flow can give you the flexibility as your life changes throughout your investment journey, that you can keep those properties, hold on to them and you can choose what to do rather than being forced to sell a property because you can't afford it anymore. 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.

[youtube id="VxDKbW68_5A" align="left" mode="lazyload" maxwidth="500"] 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.

[youtube id="_k_3HVRr7Lo" align="left" mode="lazyload" maxwidth="500"] 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, but we just don't see it because properties aren't changing hands that quickly. Most property investments are made on the assumption and reliance that the market will go up in value and that's how most people have made money in Australia through property investing. They've purchased properties and they've gone up in value, but that's just one way to make money. And if you're just relying on the market, it's kind of like gambling because you don't really know the market forces that are affecting it. So, as a part of these courses, I want to educate you, as an investor, to be able to pick the right suburbs as well as to be able to pick the right properties that you don't just have to rely on the market, but you can try and predict the market and have some accuracy there as well as have opportunities to increase the profit of your property through other means as well. So, that's it for "What is Property Investing?" In the next lesson, we're going to look at, "How Do People Make Money in Property?" To keep learning, visit onproperty.com.au for more lessons or click a video below to continue. While you're at it, why not check out our membership where we list new positive cash flo

[youtube id="KfJII8-yYzw" align="left" mode="lazyload" maxwidth="500"] 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 anything. Interviewer: Yeah, because the strategy, and setting your strategy, and thinking about how you're going to invest is really exciting but really it's not that that's going to move you forward. The goal is to create a strategy...have a goal, create a strategy, set that strategy, and then just start doing the work. That's going to move you towards your goal. So we will always talk about...you have your strategy, what's the next property to get you towards that...but really the accumulation phase is going to be multiple properties and so it does make sense to actually map that out...how many properties are you going to need to buy, what are they going to look at, et cetera...before you start purchasing. But, what sort of properties do you think people should look at in the accumulation phase? Ben: If you want to do this as quickly as possible...and as quickly as possible in my mind- Interviewer: So like six months? Ben: -if you're very aggressive...Yeah- Interviewer: Three weeks? Ben: By quick, I mean 10 to 20 years. People are probably just like I'm never listening to this dude again. Interviewer: But quick 10 years is a good time frame. To achieve financial freedom in 10 years, and then you've got the re

[youtube id="NEkvo1OofbM" align="left" mode="lazyload" maxwidth="500"] 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, which involves in many cases some additional months of work in order to get them to that stage that they can be priced. Speaker 1: Okay. Yeah, it's good to give people a timeline of how long these things take, because a lot of people think, "Okay, I've got my DA approval, next day, we've got the builder on site, the house will be build really quick." So, there's actually another couple of months in terms of getting these construction documents ready. Luke: Right, and that happens all the time. [inaudible 00:04:25] we got the DA, we want to start building next week and that's good and that's not what happens. Speaker 1: I can see why you'd have the architect working on your construction documents while you haven't been approved yet, but you submitted it. Because that way, when you finally do get it approved, especially if it's going to be like 100 days for some councils, like you're primed and you're ready to move as quick as possible. Luke: That's right. And, that's also why people, when they're deciding to buy property in the first place. If they know that they bought it, they would develop it, they try and set up arrangements with the existing owners that they could start documenting their DA

[youtube id="AZaxtl-1daQ" align="left" mode="lazyload" maxwidth="500"] 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. Understanding the various environmental and cost implications of different construction methods. Learning how to guide you through the process of getting approvals, liaising with the consultants, the whole gamut. We're the ones best placed to have a hand along the whole package. A colleague said to me the other day, I thought was quite accurate is, "If you prioritize design, you prioritize budget." For most people, budget is sort of numero uno important. So, that's why I suggest an architect to sort of stage one. Ryan: So what's the difference between an architect and a draughtsman? Because I know a lot of people think, "Oh, architect, that's going to be expensive." Is there some sort of price guide that people can think of when hiring an architect? And does hiring an architect kind of benefit you down the line versus other approaches like getting plans drawn by the builder or by a draughtsman? Luke: Like I was saying, architects typically study for 6 years or more. We're in a position, we've been trained to design buildings. But, we've also been trained to tackle all the various issues that are involved with that. So, we're talking about environmental sustainable design, different construction methods and su

[youtube id="SbQbWq6aoks" align="left" mode="lazyload" maxwidth="500"] 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. You can put your preferences in, the dates, whether you want the location in the city or in the country. And it's a win-win-win situation, I say. It's a win for the homeowner, a win for the house sitter and a win for the pets. Ryan: I think in the past, with house sitting, it used to be just friends or friends of friends. If you were going away, you'd try and get one of your friends to stay at your house to look after your pet. But now, obviously, with introduction of things like Airbnb, people are more happy to have other people stay in their homes. It's becoming more commonplace. And so, there's now a bunch of websites out there that can connect people who want to house sit with people who are offering out their houses for sitting. So, if you go to comparehousesitting.com.au, there is a tab that I clicked on called, "Compare Websites" and you can go ahead and you can see the different websites on there. One of the things that I would worry about if I was house sitting, obviously, having free accommodation is great, that can help me save a lot of money. Are these generally short term house sitting arrangements? Like, staying for a week? And then, what do you do in-between one house to the next if you are the house sitter? Robyn: I'm very

[youtube id="U-nNqja8gRU" align="left" mode="lazyload" maxwidth="500"] 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, maybe it was the wrong goal. Like financial freedom has been the goal for so long, but you achieve financial freedom and that's not the end of it. Like you don't just give up on life once you achieve it. I know there's so many people out there working really hard in jobs they don't like, to invest in property to achieve financial freedom down the track. My worry is that you'll get down the track, achieve your financial freedom, and not know what to do with yourselves and not be happy. So I really want to explore this idea in more detail about how we can create a happy life while we're investing, how we can do it before we've achieved financial freedom. So I'm not really sure how that's going to go. It's been so long since I created content. I wish I had something that was, you know, more to the point and more practical for you guys to use, but I just felt like I need to start saying something because if I don't, I'll never get started. It's just something so new for me. So at the moment, what we're doing, me and my wife, we are ... Actually, we've purchased a camper van and we're doing that up in order to convert it so