Property Hub - Investment Insights & Inspiration - Property WEALTH (3/7) - E: Examine

Starting point is 00:00:00 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

Starting point is 00:00:45 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

Starting point is 00:01:32 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,

Starting point is 00:02:08 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 bushymartin.com.au or on knowhowproperty.com.au. Now, let's get invested. Hi Freedom Fighters, welcome back to session three of your Freedom Formula. How much are you able to spend on an investment property? How much is it going to cost you to hold?

Starting point is 00:02:47 and how can you minimise any risks? This is part of what we'll be going to be helping you with today. Now that you know where you want to be after working through your W for Y vision in your six-stage property wealth cycle, it's important to establish where you are now and what capability do you have to bridge the gap so that you can then develop an achievable strategy to help you get there. This is the examination or diagnosis stage of your preventative wealth care program.

Starting point is 00:03:21 The examination stage is simple but boring. You just need to summarise and review your current assets, liability, income and expenses, along with your current money habits, or get a savvy investment specialist finance broker to do it all for you, in order to confirm your buying capacity and resultant investment capability to bridge the gap between where you are and where you want to be. To analyse your current financial capability and before embarking on your wealth accumulation plan, it's important to revisit your current personal money management practices

Starting point is 00:03:57 in order to fine-tune and automate your savings plan to fuel your future investment. This is what I refer to as the foundational activate stage of the Wealth by Stealth Income Replacement Plan. Now, many of us today, and most of us actually, live extremely demanding and hectic lives, and we just don't have time to micromanage our money. So many end up living from pay to pay with very little, if any, saved. And as their incomes increase, their spend increases to match it, which is often referred to as lifestyle inflation. A savings plan is always something that's going to happen in the future, but there's always some new need, which is code for want, that arises to justify why savings just never start or accumulate.

Starting point is 00:04:48 So let's make this easy for you. We've developed our kick-ass automatic saver system that puts your money management and savings into remote control. In simple terms, all you need to do is create three simple accounts, a freedom account, an essentials account, and a living account. Your freedom account is preferably an offset account against your home loan or a high-interest savings account, where all of your work income, rent, dividends, or interest goes into and accumulates.

Starting point is 00:05:22 An automatic transfer then shifts funds to your essentials account, which is preferably a 55-day interest-free credit card that pays all of your regular bills and expenses via automated direct debits. Now, it's important that once the payments are all set up that this Essentials credit card is locked away in a safe place at home and never ends up in your wallet.

Starting point is 00:05:44 Then at the end of the month, an auto swipe payment from your Freedom Account Offset or Savings Account pays out in full so that you never pay a cent of interest on the credit card your hard-earned savings remain in your offset account for longer to optimise the pay down and interest savings on your home loan and it enables you to accrue sizeable loyalty or frequent flyer points on the credit card.

Starting point is 00:06:09 This leaves your living account debit card with an amount transferred to it from your offset account after every pay that captures the remaining discretionary spending monies after your allocated savings and expenses amounts have been determined. You're free to spend the monies in your living account debit card on food, groceries, leisure and entertainment. But the key thing here is that once these monies are spent, there's nothing more until your next pay.

Starting point is 00:06:36 This kick-ass auto saver system is simple and easy to use, doesn't require detailed budgeting. You allocate your savings and expenses first, and then the only thing you need to monitor are your spending habits against the remaining monies in your living account. So by reserving 20% of your monies in your Freedom Offset account to your savings, approximately 50% to regular expenses

Starting point is 00:06:59 in your Essentials credit card and the remaining 30% for discretionary spending in your Living Debit Card account, your savings will accumulate all by themselves. If you'd like more details on this kick-ass auto saver system, just email me at bushey at knowhowproperty.com.au with kick-ass in the subject header

Starting point is 00:07:19 and we'll email you back with a full detailed extract of the money management system that's taken from my book, The Freedom Formula. Now, once your money management, debt reduction and savings plan have been automated and you've created the required investment equity savings deposit, you're now ready to move from the activate stage to the accumulate stage.

Starting point is 00:07:42 This is where we examine your investment and wealth creation capacity and capability, which revolves around what we like to call the bear facts where bear as in b-e-a-r breaks down into b for borrow in other words how much can you borrow e for equity how much equity or savings do you have a is then for affordability in terms of what's your affordability or how much will your investment property actually cost per week and finally r is for risk what's your risk appetite or your sleep at night factor In simple terms, it's the lower of either your B for borrowings and your E for equity

Starting point is 00:08:22 that determines your property purchase price power. And your available purchase price also needs to be monitored against your A for ongoing affordability and your R, should I say, for risk aversion. So let's break down each one of the bare facts in detail, starting with B, how much can you borrow? As I've mentioned repeatedly over the years, property is a game of finance, and it's the leverageability of property that sets it apart from all other asset classes in Australia. Because, in simple terms, by leveraging other people's money, e.g. the bank's, you only need to use 10% plus purchase costs of your hard-earned savings or equity to secure a property. The bank loan covers up to 90% of the purchase price.

Starting point is 00:09:11 This compares with much riskier margin loans on shares, where lenders will only let you borrow somewhere between 40% to 50% of the valuables of shares because the banks see shares as a much riskier proposition. The fact that banks will still lend up to 90% to 95% of a property is great vindication that property is a great place to invest because banks don't like taking risks, they're not scared they're going to lose money on a property, And let's face it, banks are very good at making money.

Starting point is 00:09:44 Now, because of the substantially increased leverage benefits of property, your money will produce upwards of three and a half times results of other investment classes, even at a lower average annual growth rate. Now, when it comes to finance, most borrowers, most banks, and most brokers only focus on one thing. Can you guess what it is?

Starting point is 00:10:07 Yep, it's rate. chasing the lowest interest rate on the loan. But they're missing the point. As an investor, what's your biggest lending asset? It's not rate, it's your reach. What I mean by this, let me explain. Did you know that there's a 50 to 60% variation across the 40 odd lenders and over 2000 loan solutions on how much you can lend based on exactly the same income and liability disposition. That's the difference between being able to secure a $500,000 property versus a $750,000 to $800,000 property. Because the more you can affordably borrow, the quicker and larger the potential property asset base you can secure and the greater your projected net worth is going to

Starting point is 00:10:57 be. For example, if your borrowing capacity at one bank limits you to being able to secure a $500,000 property versus being able to secure a $800,000 property with an alternative lender. In 20 years time, this initial $300,000 difference would have increased to accumulating an extra $1.16 million in equity value based on an average 7% capital growth rate, which represents a whopping 60% increase just because you went with a bank that allows you to borrow 50 to 60% more. and this is important because it's the size of your nest egg that will determine how much passive income you'll enjoy to fund your ideal lifestyle so the message here is that banks aren't all the same and they all differ in terms of how much they'll let you borrow and if you're an

Starting point is 00:11:49 investor you need to focus on maximizing your borrowing capacity in order to secure a higher property asset value sooner so the time the tenants the tax office can all do the heavy looking to secure your financial future. So don't chase the rate, chase the maximum reach. And if you want to maximise your borrowing capacity, then talk to an investment savvy mortgage broker who knows intimately which bank or lender will give you the highest borrowings based on your personal situation. As bank policies and lending appetites change constantly, and the lender that may allow you to secure the most today might not be the one who's going to allow you to do it tomorrow. Now while we're discussing the key criteria you need to be

Starting point is 00:12:33 thinking about in relation to finance, let's consider the other key lending elements which include valuations, offset accounts, lowest cost, a self-funding structure and standalone loans. So let's unpack these now. To maximise your capacity, in addition to achieving the highest borrowing capacity, you also need to select a lender that's going to perform realistic, not pessimistic property valuations. Why is this important? Because the higher the bank valuation you achieve on your existing properties and the property you're looking to secure, the more equity you have to contribute to your purchase and the higher the property purchase price you can achieve. Now, you may be thinking that all banks will value properties the same, but unfortunately,

Starting point is 00:13:18 you're very wrong with this assumption. Some bank values are realistic, while others are very conservative and pessimistic to the point where it's not unusual to see an $80,000 variation in the valuation based on the same $500,000 property. In other words, one bank will value it at $500,000 while others only think it's worth $420,000. And if you're relying on the equity in an existing property to provide the deposit on the purchase of your next property, then this valuation variation can make or break your purchase price power. So you need to go with a lender that optimises property valuations

Starting point is 00:13:58 and again, a good investment savvy mortgage broker will know this intimately. The next finance key is to ensure that each and every loan incorporates a 100% offset account that'll assist in maximising both the pay down on your loans while also optimising tax deductibility.

Starting point is 00:14:18 Now I'm sure you're familiar with offset accounts but as a refresher, An offset account simply means that any money sitting in the offset account reduce the interest paid on the loan by hundreds of thousands of dollars over the life of the loan and they also assist in paying off the loan years earlier. As a quick example if your home loan has a balance of about $250,000 and you have about $50,000 in your offset account then you only pay interest on $250,000 minus $50,000 which is $200,000. Now this mightn't sound like much but it'll have a significant impact on the cost of the loan and how quickly you pay it off. And the other advantage of

Starting point is 00:14:57 offsets is that your savings are effectively earning interest at the rate of the home loan, not the measly savings rates that are generally half of the home loan rate. And because your monies are sitting in the offset, you don't pay tax on the interest. So a double whammy win here for offsets. And as a further example of the massive sleeping giant power of offsets, if you're depositing $3,000 a month into your offset account from your pay and you make extra weekly repayments of about $125 on a home loan of $250,000 then you'll shave off nearly 14 years of a 30-year loan term which means you'll pay it off in nearly half the time and you'll save over $220,000 in reduced interest payments. The other benefit of offset accounts particularly on

Starting point is 00:15:45 investment loans against your rental properties is that you optimise your ongoing tax deductibility because as soon as you start paying down on an investment loan, if you then redraw from it to contribute to the deposit on your next property, then the tax office will only let you claim the reduced balance if they do an audit. And it's not a matter of if, but when you get audited by the ATO. But by putting any surplus monies in an offset account, you can then use this as a deposit without having any impact on your tax deductibility. So offsets are awesome. And there's even some banks and lenders

Starting point is 00:16:22 that will allow you to have an offset on a fixed rate, whereas most banks turn off any offset effects when the rates are fixed. So again, reach out to a savvy finance broker to optimise your loan solutions. Other property loan considerations include the opportunity to select a lender that offers fixed rate construction loans

Starting point is 00:16:41 if you're building so that you don't get caught with any unforeseen expensive surprises mid-build if rates go up over the six to 12 months of the construction. You also need to ensure that each loan is standalone and not cross-securitised and that your funding and lending structure is self-funding. But I'll cover off all of these in a little bit more detail shortly. And then we finally come to selecting the lowest cost loan versus the lowest rate loan

Starting point is 00:17:10 because there's a massive difference between the two. In simple terms, once you add on the ingoing, ongoing and outgoing costs of a loan, including any offset benefits, the lowest rate loan with hidden ongoing fees and charges can often end up being way more expensive than a higher rate loan with less fees and offset advantages. And remember, there's no point chasing the lowest rate loan if the borrowing capacity of that loan is considerably less

Starting point is 00:17:39 than the high-rate loans with high capacity and other cost-reducing benefits. And you need to keep in mind that the interest on an investment loan is totally tax-deductible. So don't let the rate get in the way of good sense. The devil's in the detail here. So an investment-savvy finance broker will provide you with apples-for-apples comparisons of the loans so that you can make a fully informed decision

Starting point is 00:18:04 on what's in your best interest. Let's now turn to the associated critical importance of your loan structure to optimising your capacity while minimising your costs and your risk. If you go directly to a bank or a lot of brokers to get a loan for an investment property, chances are they'll suggest that in addition to your home loan, all you need is another loan that equates to the full cost for the property, including the add-on establishment costs. Now, this sounds simple enough, but what they don't tell you

Starting point is 00:18:34 is that this means that all of your loans are cross-securitized or cross-collateralized across all of your properties. Now I can hear you thinking, so what Bushy, what's wrong with this? And my answer is lots, because a cross-securitized loan structure with one bank, like the one I just described, significantly increases your risks while also reducing your borrowing capacity and limiting your ongoing flexibility and control. Let me explain. If all of your loans against all of your properties are cross-securitised with the one bank, and they will be to minimise their risk unless you clearly request otherwise, then all of your property is at the control of the one bank and you're at risk of losing your home if things go wrong with the

Starting point is 00:19:22 properties or in your employment income and the bank comes and takes the keys. Your additional borrowing capacity for your next property may also be reduced under a single bank cross-securitized structure because the bank adds a risk margin servicing buffer onto your existing loans which reduces how much extra you can borrow which means you may be left in a position where you're forced to buy a lower cost property or worse still no longer have sufficient borrowing capacity to buy another property at all. In addition in a cross-securitized single bank structure every time you want to make a change by borrowing more or buying or selling properties the bank will automatically revalue all of your properties before they decide how much extra they'll let

Starting point is 00:20:07 you borrow. And this often becomes an issue if one of your properties is in an area where values have dropped for a period or their values are overly conservative and pessimistic which can often be the case. So let me give you some real life examples of the issues with this cross securitisation. A few years ago, we had someone reach out to us who was in trouble because she wanted to sell her home in Perth. What she didn't realise was that her home plus her investment property were cross-securitised loans with one bank. And as soon as she signed a sales contract on her home, this instantly triggered a re-evaluation of all her properties by her bank. And because her investment property was in an area that had gone down in value,

Starting point is 00:20:51 which increased the loan-to-valuation ratio exposure of the bank to the point where the loan balance on her rental home was actually higher than the value of the property, the bank wouldn't even allow her to sell her home. In a similar situation, we had another couple reach out to us a few years ago when their existing home and their new-built home had cross-securitised loans on them with a major bank.

Starting point is 00:21:14 Now, this all sounded fine when they took out the loans, but as soon as they tried to sell the existing home so that they could use the surplus funds to complete the construction of their new-build home, the sales contract triggered new bank valuations and because the new-build home was incomplete, the bank valued it way less than what it was going to be worth on completion.

Starting point is 00:21:34 So the bank kept all of the sales monies to minimise their risk and the couple were forced to move into an incomplete home without any monies to finish it off. Now, these are just some of the hidden risks with single-lender cross-securitised loan structures. So how do you avoid these traps? By getting your investment savvy mortgage broker to set up a standalone multiple lender loan structure, which I'm going to dig into after a very short break.

Starting point is 00:22:03 So how much is enough for you? How much annual income do you need to fund your ideal lifestyle? Because there's no right or wrong answer to this, as everyone's answer is going to be different. Now, don't be too overwhelmed by this either, because over the decades that I've been helping people with property, the first question I always ask is, what does your ideal lifestyle look like and how much does this lifestyle cost a year? And over 95% of the responses are either complete silence or confused head-scratching looks or a response, something along the lines of, I don't have a clue, Bushy, I've never thought about this before.

Starting point is 00:22:44 So I'm going to challenge you to get crystal on this. And if you don't have a sense of what your ideal lifestyle looks like and how much it's going to cost per year, then let me give you an easy example to bring it to life. This is where what we call your freedom numbers comes in. The four key numbers that will become your goalposts to focus your attention and guide your investment direction. and these are your lifestyle income, your break-free timeline, your nest egg number, the gap and what results from these is your freedom number. We help you calculate these using our unique freedom forecaster, a set of calculations based on a series of well-informed assumptions that helps capture what you want to be, where you are now, where you will end up if

Starting point is 00:23:34 you do nothing differently? What's the gap and how much do you need to invest in now to achieve your lifestyle goals? Now I stress that we're not financial planners or accountants so what I'm going to share with you on this is purely general information. So before you invest in anything make sure you talk to your accountant to ensure that what you invest in suits your situation and your risk profile. But as a starting point our freedom forecaster gives you a good first past indication of how you're tracking towards your ideal future, where you will end up and what you need to do to bridge the gap. So let's do a quick example of the freedom forecaster to put some shape around all of this. If you don't know yet what your ideal lifestyle looks like and how

Starting point is 00:24:20 much it's going to cost a year, then take a look at your current lifestyle and your current income. If you're happy with this, then start here because approximately 80% of your current income will sustain your existing lifestyle, assuming you've paid off your home by the time you want to stop work. And if you invest wisely in property, your portfolio will help you to do this years earlier and save you tens of thousands of dollars

Starting point is 00:24:45 of loan interest in the process. But more on this in a later session. Now, what's a good, comfortable lifestyle income to be aiming at? Well, I've done a lot of research on this and you'll need around about $120,000 a year for a couple to enjoy a comfortable lifestyle that allows you to enjoy an annual overseas holiday,

Starting point is 00:25:05 to be able to eat out regularly at restaurants, have a reasonable car, afford bottled wine and good clothes, afford private health insurance, enjoy frequent leisure activity, and to be able to replace your kitchen and bathroom every 20 years or so. Now, this compares to the measly amount of the age pension,

Starting point is 00:25:23 which is currently around about $35,000 a year for a couple, if you're able to get it after jumping through all of the hoops and the asset test. And on this level of income, a couple will struggle to survive, with life reduced to basic food and clothes, cutting your own hair, only taking part in no-cost or very low-cost leisure activities, no private health insurance, no budget to fix housing repairs, no car, no alcohol unless you brew your own, only being able to afford occasional club special meals or infrequent cheap takeaways, and holidays being restricted to day trips in your own town or city. now that doesn't sound like a very comfortable lifestyle to enjoy in your golden years after years of and decades of hard work so again make sure you get invested now but I digress so for the purpose of this freedom forecaster exercise let's assume that you're aiming to create an ongoing passive income of $120,000 a year when you stop work this is your lifestyle

Starting point is 00:26:25 income. And to produce this consistent level of ongoing income, you need to invest to generate an income producing nest egg of between 2.4 million and 3 million, which is based on a 4% to 5% net return. And the emphasis here is on income producing, because there's a big fallacy that many Australians have, that the home they live in is an investment. And our homes actually represent about 54% of our household assets on average. So over half of our wealth is tied up in our homes. But our homes don't classify as an investment asset. As an investment asset needs to satisfy three very key criteria. Firstly, they need to increase in value over time. So yes, our homes tick this box. Secondly, that they're easily saleable in a liquid market with lots of

Starting point is 00:27:20 sellers and buyers so yes yet again our homes tick this box but thirdly and most importantly they're able to give you an ongoing income stream and it's on this critical measure that our homes fail the investment test as they actually cost us money for rates repairs etc that isn't tax deductible so our owner-occupied homes actually pull money out of our pocket not put it in it's the same reason that I believe that crypto doesn't pass the investment sniff test. Now sure there's an argument that you can sell your home capital gains free when you decide to stop work and downsize to a lower cost home and then invest or live off the surplus. But you've still got to live somewhere and we normally don't shrink to grow. And while it may be okay to downsize, for many of

Starting point is 00:28:09 us we don't like to downgrade to something of lower quality. So the sales surplus is generally a lot less than expected. The bottom line, your home's not a cash flow producing investment. So exclude this from your calculations and any future sale surplus is a matter of bonus. This also recognises that your home is your safe fortress and whatever you invest in needs to be directed at assisting you in eliminating any home loan debt sooner rather than later. So if the world turns to pee, no one can take your home away. We'll talk more about this when we unpack the E for examine your capacity and the importance of finance structure. Now, returning to our example of the $120,000 per year target comfortable lifestyle income, your required target nest egg, nest egg number as I call it, is between 2.4 mil to 3 mil.

Starting point is 00:29:06 and this is based on the assumption that when you stop work you don't spend or eat into your principal savings but instead you live off the income that your nest egg generates via interest rent dividends etc in this way you can effectively live comfortably forever without getting into the dangerous territory where spending and eating into your principal savings becomes a negative spiral where you end up with nothing by preserving your investment nest egg principle you also end up with a sizable lasting legacy to pass on to your family and loved ones. And this perpetual financial freedom is really important at a time when our lifespans are increasing substantially as we live much longer, thanks to medical and health advances. So don't sell yourself short.

Starting point is 00:29:55 Now, 2.4 mil to 3 million investments at first sounds like a big scary number, but it's not if you have enough time on your hands as you're about to hear shortly. and let's assume that your break-free timeline is 15 years which is how long before you want to be in a position when you don't have to work anymore and note that I didn't say retire or stop work because I believe more in rewirement than retirement because we all need an ongoing purpose in life and most of us want to continue to make a contribution through some level of work whether it's voluntary or part-time. So now that we've set the goalposts, the next thing we need to do is to project where we're likely to end up if we don't do anything differently to what we're

Starting point is 00:30:41 already doing. Because if continuing to do what we're already doing is enough, then we don't need to invest differently at all. But if there's a projected gap, then we've got the opportunity to do something about bridging it. So to assess where we're likely to end up, we need to look at our existing investments and project what value they're likely to be at when we decide to reduce or to stop work. For simplicity let's assume that your current combined household super balance is around about $200,000 which is pretty close to the average level for an Aussie couple close to 40 years of age according to the Association of Superannuation Funds of Australia or ASFA. For the purpose of this exercise let's also assume that you've got

Starting point is 00:31:26 around 30 odd grand in savings sitting in your home loan offset account or other savings account and you've got about $5,000 in shares. So where are you going to end up in 20 years time if you do nothing differently and you have 200 grand in super, 30 grand in savings, 5 grand in shares and your combined household income is about 150 grand? Well, based on average long-term growth rates for each of these assets and allowing for inflation of 2.65% a year, which is within the Reserve Bank's target range of 2% to 3%, you're going to end up with a total investment nest egg of $791,000, assuming ongoing employer super contributions of about 12% of your salary. If your investment nest egg is then converted to a tax-effective income stream,

Starting point is 00:32:15 this will give you an annual income of just over $39,000 a year. Now, this is not much better than the full pension for a couple, so you're headed for a very lean lifestyle when you stop work, and this is what most people do if they're just focusing on paying down their home and putting money into super. Now, $791,000 is a long way short of the 2.4 mil to 3 mil nest egg target that will be required to fund your lifestyle income of about $120,000 a year. This means that you're a minimum of $1.6 million right up to $2.2 million short of your nest egg number in 20 years time. This is what we call the gap and at first it sounds daunting but if we deduct inflation from this figure in 20 years time back to what it's actually worth today then you're only $567,000 short right now which is one good quality high growth property. So your freedom number based on all of this is $567,000 or one property.

Starting point is 00:33:26 Now, all of a sudden, your $2.4 million to $3 million in income-producing nest egg in 20 years' time doesn't sound so unachievable, as most hard-working Aussies with savings or equity in their homes are able to secure a $560,000 investment property. now to further demonstrate what this looks like if you're trying to achieve your lifestyle income goals in 10 years instead of 20 your freedom numbers changed and look a little bit like this if you do nothing differently you'll end up with a nest egg of just $197,000 which is nearly half the nest egg size achieved in 20 years and you'll be trying to survive on a lifestyle income of under $25,000 a year. In other words, penny-pinching poverty. The gap in 10 years' time will be between $1.9 million up to $2.5 million. And amortising this back to what it equates to

Starting point is 00:34:23 in today's dollars once inflation is deducted, you'd need to invest over $1.1 million right now, which is about two to three quality properties. So you can hear the massive impact that your investment horizon has on your long-term quality of life. By doubling your break-free timeline from 10 to 20 years, you shift from having to invest $1.13 million or buy two to three properties now with a 10-year time frame down to just $567,000 or one property if you're looking to achieve $120,000 a year lifestyle income in 20 years. Yet again, it's all about time. And the more you invest now over a longer time frame the easier and less risky this all gets so again don't delay start today and if you'd like to see what your future that your future freedom

Starting point is 00:35:21 forecast looks like based on the specifics of your particular situation feel free to reach out to me now at bushy at knowhowproperty.com.au and this now brings us to the end of the W4Y stage one of your six-stage property wealth cycle freedom formula approach which is all about achieving and funding your ideal lifestyle. So in summary the take-homes from today's session are start getting invested in addition to your super today if you want to enjoy anything like a good lifestyle when you want to stop work. Don't try and reinvent the wheel by just focusing on the property because property is the last thing you need to look at after you've embraced the right principles, the right process and the right people as encapsulated in your preventative

Starting point is 00:36:10 wealth property vitamins and your six-stage property wealth process. Start with the end in mind by getting crystal clear on your why in terms of what does your ideal lifestyle look like in full vivid technicolor. Then monetize this by determining how much your ideal lifestyle costs per year. Then encapsulate this in your freedom numbers through your lifestyle income, your nest number and your break-free timeline. You then need to project where you're likely to end up if you do nothing differently based on your current income and assets. This will confirm the gap between where you want to be and where you're likely to end up, which informs how much you need to invest now and or how many properties you need to secure. So now that your freedom

Starting point is 00:36:55 numbers have let you know where you're headed, what your lifestyle income goals are, how much you need to invest now to make it all happen. The next step is to examine and confirm what your financial capacity is to invest, which is what we're going to dive into in session three of the Property Wealth Revolution, which is E for examine. And if you want to race ahead and or find out more, feel free to grab a free copy of my award-winning book, Get Invested at knowhowproperty.com.au. Or if you want to get the full step-by-step process from where to go in infinite detail, you can buy a copy of my full Freedom Formula book on Amazon, Booktopia or any good bookstore or online provider. That's food for thought and stay with us for more here on

Starting point is 00:37:44 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 desire not to fall 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 bushymartin.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

Starting point is 00:38:36 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,

Starting point is 00:39:24 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 day's your last.

Property Hub - Investment Insights & Inspiration - Property WEALTH (3/7) - E: Examine

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