Property Hub - Investment Insights & Inspiration - Property WEALTH (1/7) - Intro and investor mistakes

Episode Date: December 23, 2022

Welcome to the Property WEALTH series, where Bushy Martin reveals his unique six stage Property Wealth Revolution of Growth. This is essential listening for anyone who wants to find their Freedom Formula, and sustainably build wealth through property. It's based on the concept of 'preventative wealth', and will set you up for long-term success. We start the series by giving you your V.I.T.A.M.I.N.S - your eight fundamental property investment principles. You'll also learn about the common investor mistakes from the outset, so you don't have to learn the hard way! Tune in now and subscribe so you don't miss these vital insights. Three easy ways to Get Invested right now: 1. Subscribe to this podcast now, if you haven’t already, and get the inspiration delivered to your podcast feed each week 2. Get a copy of my book, Get Invested, for FREE, and find out what it takes for you to invest in living more, working less. Go to: https://knowhowproperty.com.au/get-invested-free-ebook  3. Join the Get Invested community. Each month Bushy sends a free and exclusive monthly email full of practical ‘Self, Health and Wealth’ wisdom that our current Freedom Fighter subscribers can’t wait to get each month. Just visit bushymartin.com.au, scroll to the bottom of the page and sign up. About Get Invested, a Property Hub show Get Invested is the leading weekly podcast for Australians who want to learn how to unlock their full ‘self, health and wealth’ potential. Hosted by Bushy Martin, an award winning property investor, founder, author and media commentator who is recognised as one of Australia’s most trusted experts in property, investment and lifestyle, Get Invested reveals the secrets of the high performers who invest for success in every aspect of their lives and the world around them. Get Invested is part of the Property Hub podcast channel, your home for property investment insights, inspiration and stories from Australia’s top property experts, investors, leaders and analysts. Subscribe now on Apple Podcasts, Spotify and Google Podcasts to get every Get Invested episode each week for free, and also get full access to RealtyTalk, Australia’s top online property show for red hot property investing news and insights direct from property industry leaders and influencers. Property Hub is a collaboration between Bushy Martin from KnowHow Property, Kevin Turner from Realty, show producer Andrew Montesi from Apiro Marketing and Apiro Media, and Australia’s largest independent podcast network DM Media.  For business and partnership enquiries, send an email to: [e-mail] omnystudio.com/listener for privacy information.

Welcome to Get Invested, the leading weekly podcast to help you unlock your full potential and enjoy your version of sustainable success that lies at the intersection of your three elves, yourself, your health, and your wealth. I'm your host and guide, Bushy Martin, and each week we go deep, sharing great conversations with proven experts in all walks of life, including the best investors, property experts, analysts, leaders, founders, sports stars and health gurus to uncover their secret know-how on where they invest their time, their skills and their money and the benefits that this creates. To help you find out what it takes to break free from the grind and discover your flavour of

freedom, to create your freedom formula. You see, the truth is that everyone invests. Every second of every minute of every day, we're investing our time, our skills, our energy and our money in something. Some of us are investing consciously, some unconsciously, sometimes for good, sometimes for bad, and sometimes for no impact. Get Invested will help you start living by design, not by default. I'm going to help you to make it happen, not let it happen. You'll hear the top tips on how you can live with conscious intent so that you can live more, work less, and live your legacy by investing now. You'll enjoy the stories and secrets of high performers who invest for success in every aspect of their lives and discover the top tips on how to get started,

how to make the most of your investment journey and ultimately to be living your dream, not someone else's. As you engage in each episode, you'll glean the information, inspiration and implementation that you need to get empowered and get invested in imagining and actioning the life that you've always dreamed about. And Get Invested is proudly part of Property Hub, your home for property investment insights and inspiration. Make sure you subscribe now on your favourite podcast player to get every episode of Get Invested and Realty Talk, which is Australia's leading and longest running online property show that's full of red-hot property investment news and insights direct from all of the industry leaders and influencers. You can also connect with me

personally and join the Get Invested community of fellow Freedom Fighters at ushimartin.com.au or on knowhowproperty.com.au. Now, let's get invested. Hi, Freedom Fighters. Greetings and welcome to session one of your Freedom Formula. How would you like to live life in your own terms and enjoy the fulfillment and freedom that only comes from having time on your hands because your income doesn't rely on you and your time to produce it. Imagine how good your life is. A life where you have the freedom to do what you want, whenever you want, with whoever you want. Where you work because you want to work, not because you have to work. A life where you never have to worry about money again. I can't even put into words the peace

of mind and the feelings of freedom that comes from being in this position. It felt like a huge weight was lifted off my shoulders. And if I can do it after being burnt out, broken and totally broke a bit over 20 years ago, then I know anyone can do it and I know you can do it. And I believe there's never been a better time or a greater need to make this happen. Like Radek and Emma, where the unique property investment approach that we're going to reveal to you over the next few sessions, made headlines all over Australia. After starting out with a humble home worth about $82,000 a bit over 15 years ago, the couple has now built up a national portfolio of 12 properties, with a total value of over

$3.5 million, where their rental income now surpasses their day job income. I'm Bushy Martin from KnowHow Property Finance Strategists, and over the next six sessions, I'm going to roll out a summary of the stages and steps that have worked so well for my wife Sonia and I along with more than 2,000 other property investors we've assisted over the years to live and love their ideal lifestyles by helping them to accumulate over a billion dollars

in property wealth that are all spelled out in detail in my award-winning books Get Invested and The Freedom Formula. So over this and following sessions I'm going to break down our unique six-stage property wealth revolution of growth that's based on our concept of creating what we call preventative wealth. Now you've probably all heard about preventative health

where your daily habits and regular health supplements help sustain your health long-term and prevent and limit the probability of any major life-threatening challenges. Well the concept of preventative wealth is no different as your level of long-term sustainable wealth will be determined by the happy habits and regular rewarding rituals that you develop with your money management by investing in your supplementary vitamins where the eight fundamental property investment principles are all encapsulated in the acronym vitamins which breaks down into the for value the level of property value that you need along with the property value that you're actually able to secure. The I in vitamins is for the interest rate of growth where the rate

of capital growth will be critical to the size of the nest egg that you're actually able to accumulate. The T in vitamins is for time where sustainable success takes at least 15 years and you need to take the time now to invest in the time you've got in order to get your time back Because at the end of the day, it's all about time, as time is your most important asset that is in limited and diminishing supply. So time to do all the things that are really important to you is actually what it's all about. Now, these first three supplements are what we call your setup factors. Then come the sustainability factors that very few investors incorporate, and they'll make or break your future success. where the A in vitamins is for affordability.

Now, this is a much overlooked aspect where the weekly cashflow affordability of your properties through clever structuring ensures that your properties don't eat big holes in your savings or salary and don't hamstring your lifestyle so that you can afford to hold the properties long enough to reap the rewards.

Next is M for mindset where what's between your ears in terms of your beliefs, your attitudes, your outlook and your expectations will make or break your investment success because the biggest risk to your success in anything is the person staring back at you in the mirror. That's right, it's yourself. Next in your bottom is eye for income because you need an income to borrow the monies necessary to secure the properties that will eventually replace your income. So don't give up your day job yet, you'd be going to start or continue to invest. Then comes N for network,

where the quality of independent professionals in your property team that you surround yourself with will make or break your level of success on the basis of the old saying that your network equals your net worth. And the final vitamins ingredient is S for strategy, where the investment strategy and structure that you adopt needs to be crafted around your end lifestyle goals and the time that you're actually able to commit, as you need to start with the end in mind and then work backwards. Now, it's important to stress here that you need to combine all of these fundamental elements to attain and maintain sustainable success. Shortcut any of them or leave any out and you'll break it instead of making it. Now, the details of these essential property investment preventative wealth

vitamins are all encompassed and implemented using our unique six-stage property wealth growth process, where again, the acronym for wealth, and yes, I know I'm a shocker for acronyms, this is the only way I can remember things. So in simple terms, wealth breaks down into W is for your Y, which is your vision of your ideal lifestyle. It then makes it easy to monetize and determine how much your ideal lifestyle costs. Deferring back to the health analogy, this is your prognosis and revolves around what we call your freedom numbers.

Next comes E for examination, which is confirming your current financial capacity to be able to bridge the gap from where you are now versus where you want to be. In health terms, this is your diagnosis and we use what we call your bare facts to determine this, but more on this later. Then comes the A in wealth, which is your approach. Once you're clear on your why and have examined your capacity, you're then in a position to finalize your

investment strategy approach, what we prefer to call your strategy. This is the essence of your GPS to get you from where you are to where you want to be. And based on your why and your capacity examination, it'll pinpoint where you are on what we like to call your capital growth to cash flow curve. That will guide what type of properties and what locations and what ownership entities are best suited to achieve your stage of the wealth by stealth cycle. Next in property wealth comes your L for leverage, where you'd leverage other people's expertise and other people's money to assemble all of the best independent professionals that you need in your property team to optimise your opportunity and your outcomes. Then and only then do we finally

get to your tea for treatment property stretch after you've built it all out on paper first and before committing to anything, which is when you finally start getting your independent team to start researching and selecting locations and properties in order to secure properties that actually best fit your strategy. Once you've secured a property, the final stage of your revolving spiral of growth in your property wealth is your H4 health check, where you and your independent property team do regular benchmarking and performance checks of your property, your finance structure, your cash flow, and other critical elements. And once you've completed your first property wealth cycle, you just need to rinse and repeat the process all

over again in a circular spiral of growth fashion until you've secured the type and size of portfolio that's projected to achieve your long-term lifestyle income needs, which is generally between two to four high growth properties, depending on your income goals in your timeline. So over the next few sessions, we're going to unpack the key elements and processes behind each of these six property wealth stages so that you walk away with a GPS framework that will help guide you to join the select ranks of the 5% that actually achieve sustainable success.

And if this captures your interest and you want to know more, you can grab a free copy of my wall-bending book, Get Invested, to further whet your appetite and inspire you to invest in your future, which you can get now at knowhowproperty.com.au or via bushymartin.com.au. Over these sessions, we're going to help you become what I like to call a passive-aggressive

investor, where you become quietly aggressive about investing in passive income so that you can enjoy the fulfilment and freedom that only comes from having time on your hands by investing in growth property assets where your ideal lifestyle income needs are being met without relying on your time to generate it. Now, none of this is rocket science and we didn't invent it. But unfortunately, most investors get it wrong when it comes to property investment. As I've already mentioned, the sad reality is that only about 5% of investors achieve sustainable success.

So what separates the best from the rest? Well, while the 95% focus first and foremost just on the property, the 5% focus on adopting the right principles, the right people, and the right process first before they even consider the properties. The right property strategy and solutions for you will fall out of consideration of the principles, people and process, not the other way around. And this is all captured in the six-stage property wealth revolution. Now, I know from personal experience that property is by far the best vehicle in Australia to help you get your time back and achieve your ideal lifestyle.

Yet unfortunately, many get it wrong because the devil's in the detail. So before we dive into the property wealth growth revolution, let me start with the common mistakes that we see a lot of potential and existing investors make. The first is that many hardworking Aussies see investing as an optional extra, not a must do. But they're all in for a big shock because they mistakenly believe that just paying off their home loan and putting money into super is going to maintain their lifestyle when they try to stop work.

The cold hard reality for most is that relying on your super is going to leave you in penny pinching poverty long term. It's a major reason why over 73% of current retirees over the age of 65 are surviving on an average of just $295 a week, which is about $15,300 a year. And this is all according to ABS data. Now, I don't know about you, but that doesn't even cover our weekly grocery bill, let alone anything else. So investing outside of super isn't an optional nice to do if and when you get around to it, but a non-negotiable must do now if you're going to enjoy anything like a comfortable lifestyle when you want to stop work.

The next major mistake that many potential property investors make is that they don't make the time to get started because they use the excuse that they're just too busy and they mistakenly believe that they still have plenty of time up their sleeve. So they'll get around to it one day or sometime later. But as we all know, one day and later never comes. You need to invest the time now to use the investment time you've got to do the heavy lifting for you in order to get your time back as time is one of the biggest investment success ingredients so don't delay start today as i illustrate in the freedom formula a 10-year delay in investing in a 1.2 million dollar property portfolio at a growth rate of about seven percent will cost you over 2.4 million in lost wealth

which equates to over $4,600 a week. So it's never too late to start but it's always too late to wait. For those who are keen to start investing one of their biggest problems is that they don't know who to trust and they don't know where to start. So the mistake they make

is to do nothing out of fear and time and opportunity slips through their fingers and passes them by and eventually in their mid-50s they suffer what I like to call their oh shit super moment when they realize that their super annuation isn't going to be anywhere near enough to fund their lifestyle when they want to stop work so they're left eking out a paltry existence on next to nothing or they're forced to keep working until the day they drop. Alternatively others try to reinvent the property wheel because

they just don't trust anyone and they try and do it all themselves and end up making very costly mistakes because they just don't know what they don't know. Now, I know this personally firsthand because this is one of the biggest issues that I suffered when I first started investing in property and I paid the price until I learned the hard way that property is definitely an elite team sport and a game of finance and I wasn't a player. I just needed to own my property team and then manage my managers. The next mistake for those that do end up investing, as I mentioned earlier, is that they just focus on the property without getting all of their other ducks in a row first

in terms of all the other key vitamins ingredients that I've spoken about already, especially in relation to mindset, strategy, finance capacity and structure, ownership entities, cashflow affordability and establishing a good independent and proven property team. They simply focus all their attention on buying a home

like the one they live in that is close to their backyard and then they try and figure out what to do with it after the event. But by then, it's way too late. With nearly 11 million properties spread over 15,353 suburbs and locations across the country, the chances of a property in your neighbourhood being the best performing property available is extremely unlikely. So if you adopt this narrow-sighted approach, you're actually hamstringing yourself. And if you haven't set it up properly to maximise your growth while minimising your costs as well as minimising your risks by considering ownership entities, finance structuring and tax planning, then you're setting

yourself up to fail right from the get-go. Now, these are the main reasons why over 54% of first-time investors sell their properties within the first five years, because they haven't bought the right type of property in the right location and they haven't set things up in the right way. And as a result, the properties end up costing a lot more than anticipated and burn an unaffordable hole in their pocket each and every week and the property takes much more time and much more hassle than expected to manage. So they end up offloading the property, losing money

and they never invest again. The sad thing is that just buying a property versus adopting the right principles, people and process before investing in a property is the difference between spending money on a property that underperforms, costs a bomb ongoing and causes a lot of stress versus spending the same money on a property that significantly grows your wealth,

has little or no impact on your savings, salary or lifestyle and creates an easy, affordable, stress-free journey. Learn from this and don't put the property cart before the horse. Now that we've set the scene in terms of what not to do, in the next session, we'll start diving into what you need to do in the first stage of your property wealth revolution, which is W for your Y. That's food for thought

and stay with us for more here on your property hubs. Get invested. Thanks for getting invested. Now, here's three easy ways you can take action to start making it happen to ensure you build momentum

and start living by design, not default so that you're following your freedom formula. Firstly, subscribe to this podcast if you haven't already and keep the weekly inspiration coming. Secondly, get a copy of my book, Get Invested, for free

and find out what it takes for you to invest in living more and working less. Just visit bushimartin.com.au forward slash books or knowhowproperty.com.au or click on the links in the show notes. And thirdly, join me and the Get Invested community. Each month I send a free and exclusive email full of practical self-help and wealth wisdom that our current Freedom Fighter subscribers can't wait to get. Just visit bushimartin.com.au, scroll to the bottom of the page, and sign up.

And there you have it. In three easy steps, you're on your way to dusting off your forgotten dreams and making them a reality. Get Invested is proudly part of the Property Hub, your home for property investment insights and inspiration. When you subscribe to the show, you get all of your Get Invested episodes, along with Realty Talk, Australia's longest running and leading online property show for red-hot property investing news and insights direct from all of the industry leaders and

influencers. And finally, feel free to connect with me on Twitter, Facebook and LinkedIn as I'd love to hear your feedback, your inspiration, your ideas and your questions and queries anytime. Thanks for listening, hear you next week and as always, dream as if you'll live forever, and live as if the days you'll last.