Property As An Insurance Policy: This Will BLOW YOUR MIND!

[arve url="https://www.youtube.com/watch?v=hpcxTT1iQ4I" mode="lazyload" align="center" /] The concept of "property as an insurance policy" may be one of the most important concepts you hear around property investing. This concept can allow you to invest in a low risk way, achieve your goal of financial freedom and live the life you want now Book a free strategy session - https://onproperty.com.au/session/ 0:00 - How this is different to traditional property investment advice 1:24 - How this idea of property as an insurance policy came about 4:11 - Traditional property investing advice goes like this 4:50 - The parable of the pharmacist 5:25 - What does property as an insurance policy look like? 7:40 - How this changes your investment goals 8:52 - Why this concept is SO POWERFUL 12:40 - You can still aim to achieve financial freedom as quickly as possible 14:50 - If you can understand this property investing becomes so simple 15:20 - How long is this going to take you? Maybe as little as 1-2 years 16:55 - If you found this interesting then do this Recommended Videos What it feels like to be financially free - https://www.youtube.com/watch?v=xVzvDkMpZ3k 2 Properties to Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y Transcription: The concept that I want to share in today's episode, maybe one of the most important concepts you hear around property investing. And that's this concept of property as an insurance policy. There's a lot of content out there talking about property as a way to get rich quick, achieve wealth achieved financial freedom. Heck, I've even created a lot of it, but a lot of that requires you or expects you to continually work and continually strive until you reach this defining point in your life where you're either wealthy or you're financially free, and then you can stop. That's going to take an extremely long period of time and life is short, but property as an insurance policy, as an powerful, powerful concept that can allow you to invest in a low risk way, achieve your goal of financial freedom, but also live the life that you want. Now. So there's some pretty big claims that I've made about this episode, but let's get into it and then you can decide at the end whether or not you think this concept is as powerful as I believe it to be. Hi, I'm Ryan from on-property, helping you achieve financial freedom. You can check out everything I do over on property.com. Dot. Aau. Don't forget to subscribe as we weren't new videos coming out every single week day. So this idea of properties insurance policy actually came about a little over a year ago where I was having a conversation on the phone with Ben Everingham who's the buyer's agent from pumped on property. Likely if you follow the channel, you know who Ben is. We do a lot of content together and we're actually friends outside of work as well. So he had called main cause sometimes he likes to get my opinions on things and he was looking to completely revamp his property portfolio. So Ben's quite a successful investor at this point in time. His property, he wasn't delivering him the cashflow that he wanted or that he would need if he stopped working, he wouldn't actually be financially free from the cashflow. So he was a bit stressed about that, called looking at selling a bunch of assets, rebuying different assets in order to get that cashflow fast up. And so I started having the conversation with him and I asked him a couple of simple questions. The first question I asked him is, do you want to stop working? Do you need this income now? And the answer was no. He's really passionate about his business. He loves helping people find and invest in property and achieve financial freedom themselves. He was really enjoying it at this point in time. He still is. And he said, no, I don't want to start working. Even if I was financially free through my properties, I would still keep working. So okay, that was question number one day on question number two, which was the really important question. And that was with your current portfolio, it's not delivering you the results of financial freedom right now, but if you did nothing, and if you just left that, because I think at the time whose properties were positive cashflow, if you just left it, would they go on to pay themselves off and eventually give you the cashflow that you desire and the passive income that you desire? And he thought about it and the answer was yes. So he doesn't want to stop working now and if he just leaves his proper portfolio, it's working for him. It's growing, it's paying off debt, it's going to go on and achieve the result that he wants. And so I said to him, I said, Ben, your investment portfolio is just an insurance policy in case something goes wrong with your business, something goes wrong with your health in case you don't want to work anymore, you don't need that cashflow right now. It's an insurance policy for your future. And that's where this concept was born and it's really taken about a year to kind of crystallize that and realize how important that idea was. It just came up in conversation that we were having, but I see it as so valuable for everyday investors out there and that's why I wanted to share it with you today. So traditional property investing advice goes like this, invest in properties, maybe it's 10 properties over 10 years, maybe it's buy and renovate and sell. The whole goal of investing in property is to get you to an end point where you achieve financial freedom or you achieve a certain level of wealth and then you can quit your job, then you can be happy, then you can live your life. I don't like that concept. I don't like that we need to wait 15 2025 years or even 10 years in order to live the life that we want. That's just too much time to waste. I remember working in pharmacy and I was talking to the pharmacist at the time, she was 55 and she hated being a pharmacist. She just didn't like it at all. And I said to her, why don't you go and do something else? And she said to me, and the shook me to my core, she said, oh, I've only got 10 years left of my working life so I'll just keep going. And I think I was about 20 at the time and it's thought 10 years, you're just going to ride off 10 years of your life doing something that you hate. So I don't want that for you guys. So property is an insurance policy, looks like this. You invest in property, you invest in high quality longterm assets with good solid cash flow. That's pretty important. Okay. The idea here is that the properties are able to pay for themselves or your property portfolio as a whole is able to pay for itself. So you don't need to worry about it. So when you have expenses, you've got management fees, your council rates, you've got your interest rates on your loans, obviously maintenance, insurances, all of that sort of stuff. You want to be in a position where the rental income coming in can pay for all of that but also be paying off your loan as well. So ideally you being in a principal and interest situation, which I know a lot of people are doing now anyway because banks are kind of incentivizing that with low interest rates at the moment. So you'll be paying off your properties or there'll be paying off themselves. And what happens is if you acquire enough properties that if they weren't completely paid off and that rental income was now going into your pocket, you would be financially free. And we call these the foundational properties cause these form the foundation of your financial freedom. So if you are able to acquire enough properties that maybe you're not financially free right now, maybe they're just generating enough cash flow to pay for their expenses and to pay a bit off the loan and that's it. No extra cash is going into your pocket. You're not financially free but they're paying for themselves and they're paying themselves off. Maybe on a loan term of 20 or 25 years. You're not financially free now, but you know that if these properties were completely paid off, you would have a baseline level of financial freedom that in its core is property as an insurance policy you have a foundation of properties that if paid off would deliver you financial freedom and feasibly they are going to pay themselves off by themselves through the rental income into the future. So you don't need to work a job in order to pay them off. You don't need to have a business in order to pay them off. You don't need to sacrifice in order to pay them off. They are paying themselves off. And so the goal here is to, rather than striving to invest in property and achieve wealth or financial freedom and then stop and live your life, your goal becomes very simple. Your goal becomes acquire enough foundational properties that if paid off would achieve financial freedom for you. So you acquire those properties, you get enough cashflow either through investing in high rental yield properties anyway or building granny flats like me and Ben talk about in the two properties to financial freedom strategy. But you acquire those properties and they now become your insurance policy. So they now assuming things go well and you don't have disasters happen, they now we'll go on to create financial freedom for you in your future. Now that may take 15 years or it may take 20 years or 25 years, but feasibly that is going to happen and as rents go up, you can put that extra rental income onto the property. You can also choose to accelerate that by putting more income onto the property yourself as well. But you now have that insurance policy in place. You have that foundation that's going to achieve financial freedom for you. What this does and why this is so powerful, I believe, is that you now know that your future is secure. You've set up your insurance policy, so when retirement comes, you've got that income coming in.