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Show Notes
https://www.youtube.com/watch?v=UIqd5HXwiyc
Property investing can be overwhelming and some strategies are so complex and difficult it's hard to work out what steps to take. So today I want to share with you a really simple property investing strategy that just seems to work.
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0:00 - Introduction1:24 - 2 Properties to Financial Freedom1:57 - What exactly is this strategy?5:11 - What makes this strategy so powerful?7:40 - How this strategy lowers your risk9:20 - This gives you a clear path to financial freedom11:20 - You can adjust this strategy to suit your needs12:45 - This is not a get rich quick strategy18:10 - A simple property investment strategy that just seems to work
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2 Properties To Financial Freedom
Transcription:
Ryan 0:00property investing can be overwhelming there's so many different strategies that it can choose from and there can be these larger than life gurus who are going to teach you through their complex method how to achieve greatness in property but often it's so complicated and so difficult that's really hard for you to work out okay what steps do i need to take and how is this going to lead to financial freedom or whatever it is that your goals are so today i want to take the time to share with you a really simple property investment strategy that just seems to work it's simple enough that people can understand it that people know what their next steps are that they can implement it and that they can actually move towards financial freedom and even more exciting is that this strategy is actually changing people's lives in the short term as well so they're able to gain choices in their life maybe not for financial freedom but they're able to change their lives in significant ways and we'll talk about some of that stuff as well so i hope that you're excited to hear more about this strategy hi i'm ryan from onproperty helping you on your journey to financial freedom and a lot of you who have been following me for years will already know about the two property to financial freedom strategy and for some of you it might be the first time hearing a strategy like this and two properties to financial freedom is just that simple it's purchasing two properties that ultimately delivers you financial freedom but the really cool thing about this strategy is that it's not convoluted it's really simple but it can also be flexed and changed and adjusted based on what your goals are so let's talk through this strategy let's talk through why it's so powerful and let's help you see whether or not this is something that you would like to pursue in your life and help you work out what your next steps are so what exactly is this strategy why is it so simple why is it working so well the strategy is a mixture of cash flow and capital growth so capital growth is growth in value of the property or buying in high quality areas where the property is going to go up in value as well as positive cash flow the property you see getting good rental income from your property which means you're getting more rental income then you have an expenses on the property so this means you purchase the property and when you're renting it out the rent that you're receiving from your tenants is paying for all of the interest on the mortgage and paying for all the expenses on the property so it's a mixture of the two and actually what's really interesting about this strategy is you don't actually need the capital growth element of it we want capital growth because why the hell not right if you can get it you want to get it but you also want that stability that we know that this property is going to be rented well into the future because we may even keep this property for our lifetime and this property may deliver us financial freedom so the strategy what is it it's really simple you go out and you purchase a property purchase within this property ben and the team over pumped on property or working in brisbane with clients so they're purchasing a house on a good size block of land and then they're building a granny flat out the back or building a tiny home out the back of the property so you purchase a property in a high quality metro market so brisbane area in sabah that is expected to grow within the next 15 2025 years so high quality suburb you're purchasing a house you're renting out the house and then you're dividing it up so you're putting in a fence so the house has its own private backyard and then you building a tiny home out the back also known as a granny flat which has its own private entrance its own private smaller courtyard sort of size as well and you're renting out those two separately so what this means is that you're able to get the high quality piece of land in the metro market but you're able to increase your rental yield on that property so we're seeing people purchase properties for around the $400,000 mark renting the home itself for around $400 per week or about a 5% rental yield and then building a granny flat out the back for about $120,000 and then renting that for somewhere around a $300 per week mark so this means in total you're investing
about $520,000 give or take depending on how much the property costs it could be a bit more could be a bit less same with the granny flat so around 520,000 and getting around $700 per week could be a little bit more could be a little bit less around at 7% rental yield and with interest rates who below at the moment around 3% that's going to be positive cash flow and pay for itself so the strategy is that you purchase these you purchase one of those so you're building effectively getting two incomes julian come on those properties you duplicate that twice that's the two properties and then you go ahead and work with paying off those properties over time or letting the properties pay themselves off and letting the tenants pay off the mortgage and the idea and what makes us so powerful is a it's really simple because you're just buying regular houses and then you're building a granny flat out the back which you can only do in some councils so you do need to be careful where you purchase but building a granny flat can actually be a pretty simple and quick process and doesn't take too long to build and actually renting really well as well so it's quite simple because you're just buying houses on good blocks of land most people can understand that sort of strategy buying and building the granny flats and then paying for themselves and paying themselves off and over time they will eventually pay themselves off completely and when they paid themselves off completely instead of putting the money towards the mortgage and paying down the mortgage of the property that money now goes into your pocket and that's where the financial freedom element comes into it so you're purchasing the properties and you can generally do that in a really short period of time a lot of the clients are pumped on property or buying two properties really quickly within like a two year period building the granny flats on them and then they've got this foundation of financial freedom they're not financially free yet but those properties are going on to pay themselves off and as long as we don't have some catastrophe they'll eventually pay themselves off those investors will own their properties outright and be able to live off the income for those properties so what's really cool about this strategy is i it's really simple for everyone to understand but be it's also quite quickly to implement so while you're not getting financially free in a couple of years you can build up your financial foundation for your financial freedom in just a couple of years so you've spent a couple of years working hard saving deposits researching the market actively investing in property actively building granny flats so you spent a couple of years doing that but once that's done those properties kind of just tick away and do their thing and you get to focus on your life so it's a powerful strategy because it's simple but it's also powerful because you can implement it now and you can take direct actions now that are going to deliver you financial freedom in the future and it's not a strategy where you need to be actively doing this for 1015 2025 years in order to get to that financial freedom one day it's also not something that when you purchase an investment properties you now tied to your job it's a massive financial strain because these properties are negatively geared and you have to pay for them because they're positive cash flow they're paying for themselves and if something like a pandemic happens again or recession and you lose your job well you could potentially just divert the cash flow from those properties instead of paying off the mortgage maybe you can just pay the interest and you could actually use that to support your life in the short term or a portion of your life in the short term so they can actually support