What if you could start your life again, knowing what you now know?
What would you do the same? What would you do differently?
Retrospect is an amazing thing…
Last Tuesday I saw Tony Robbins.
It was the 2nd time i’ve seen him live, but this time he was different. He was elevated, he was calm and he is now a billionaire. He talked about the journey he’s been on for the last 10 years and how after interviewing 50 billionaires for his book Money – Master The Game, his concepts around money and success had changed forever.
He talked about 3 things that really resinated with me:
1. Success leaves clues
2. You will never be happy without achievement
3. Your achievements mean nothing without fulfilment
After thinking about Tonys ideas for the last week I wanted to share the property investment strategy I would use to create $100,000 worth of passive income per annum within 15 years.
Step 1 – Accumulation phase
Buy a high quality, low maintenance house for $420,000 and rent it out for $400+ a week
Buy a high quality, low maintenance 2nd house for $420,000 and rent it out for $400+ a week
Build a granny flat on the 1st house for $110,000 and rent if out for $280+ a week
Build a granny flat on the 2nd house for $110,000 and rent if out for $280+ a week
Buy a 3rd house that is liveable, but has renovation potential in the future for $550,000 and rent it out for $450+ a week
Step 2 – Consolidation phase
Pay principle and interest off the 1st house and granny flat for 15 years
Pay principle and interest off the 2nd house and granny flat for 15 years
Pay principle and interest off the 3rd house for 15 years
Renovate and sell the 3rd property in 15 years for $1,100,000 (for this to happen the property will have to increase by 4% per annum for 15 years. The renovation will also need to increase the value of the property by 20%)
Use the money from the sale of the 3rd house to pay off the 1st and 2nd house and granny flats outright
Do whatever you want to do for the rest of your life
Rules for each investment
Only buy metro markets – Sydney, Melbourne and Brisbane
Only buy houses on 400m2+ pieces of land
Only buy within 25km of the CBD or close to the beach
Only buy at the right time of the cycle
Its important to note:
The sooner you accumulate the properties the sooner you can work towards financial independence
If you can only afford to buy one property at a time then start with one and build from there – this will blow out the 15 year time frame
This strategy will take hard work and patience
You will never get rich quick, but you can completely change your financial life over a 15 year period
There are 1000 different ways to achieve financial freedom – this is just one idea – its not financial advice and may not be relevant to your personal situation, so take this idea with a grain of salt.
Ben Everingham runs a highly experienced buyers agents based in Queensland, which is registered with the REIQ. Over the last 8 years Ben has bought over $8 million dollars worth of investment property and now lives on the Sunshine Coast with his family. Ben and the team at Pumped On Property have supported their clients to buy over $130,000,000 worth of investment property over the last three years.