I recently attended Dymphna Boholt’s webinar “Fast-Track Your Real Estate Success in 2015”. It got me pumped up to make 2015 my year!
I wanted to share some of the things I got out of this webinar in the hope that is will help you.
Some of this stuff I had never heard or never thought of that way before. Things like “your next property deal should set up the following 1-2 properties you will invest in.” Such good stuff.
Hey guys Ryan here from onproperty.com.au your daily dose of property education and inspiration. In today’s episode I want us to talk about a webinar that I just attended by Dymphna Boholt and what I actually got out of that webinar. The webinar goes for about 90 minutes or something like that and it was jam packed full of information that I think you will find helpful. So I want to go through the biggest highlights from this webinar in the hopes that it’s going to help you in your journey as well. Now Dymphna is running these webinars in 2015 teaching people how to fast track their real estate success this year in 2015. If you are interested in this webinar which you probably will be after I tell you what my takeaways are you can check it out by going through my affiliate link at onproperty.com.au/d and so you can check it out there its free to attend and she’s got a whole bunch going on this year so I highly recommend them.
So the first thing that she starts talking about is talking about long term goals and strategic planning. Talking about where you want to be 5 or 10 or 20 years time and I think it’s really good to project forward and think about that sort of stuff. Often we get so caught up in where we are now and what we’re doing now and what our next step is that we forget that there’s actually a bigger picture to this and there’s a reason that we’re doing this. In fact I’ve been having some back and forth emails with one of my readers and I feel like they are in this situation as well they’re just saying well I want this now and they can’t seem to see into the future and I’m trying to help them do that and I think that day will get there.
She also talks about something that I love that she said which was actually towards the end. What she was saying is that the next property deal that you do should actually set up the following two property deals after that. And talking about having a strategic investment in the next two to three years are being planned out month by month exactly what you plan on doing and what’s going to happen.
I really love that idea of purchasing one property not just thinking about that property by itself not just thinking that this is one property what’s this property going to do or how can I stretch this property but to be thinking well this property is actually going set-up my next property and the one after that. So in that 2 to 3 year time frame if I want to buy more than one property I really need to be careful with the first property that I buy because that’s what I’m going to need to set up the next property deals. I’m definitely going to take that with me whenever I go to buy my property I’m going to think about that how will this set me up for the next property deal.
She also talks about don’t buy for natural growth. She calls it buying the developer’s profit and some of the things I really love or one of the things I really love about Dymphna is the fact that she doesn’t sell any real estate and she doesn’t make any money from people’s deals. So she doesn’t put deals together for people and then sells them to make money off the top like a lot of developers do and a lot of property markers do.
The only way she makes money is from actually just from the training she provides. So students pay up front for her training she doesn’t actually sells these deals and truthfully I’ve been approached by people and been offered large sums of money in order to market properties which have been $5,000 to $20,000 per property in order to market it and she calls it buying the developers profit. So rather than just hoping for a natural growth and hoping this new built property is in the right area and stuff like that she calls it buying a developers profit in the terms that they are getting $20,000 or whatever is it they’re making out of the deal you’re actually paying that $20,000 and so she talks about really being strategic knowing what your investment strategy is and moving towards that.
Something that was really interesting because obviously I love positive cash flow properties. I mean if you’ve been following me for any amount of time you know that I love positive cash flow properties and so she spent some time talking about negative gearing and how one of the problems with negative gearing is when times get tough in your life and you are negatively geared. It means you have to sell a property because you can’t afford to own it. She says the number one mistake investors make is they trade properties. So they’ll buy a property and they’ll it in a year or two later and then traded for another one. You know they’ll buy it and hold on to it for 3 years and then sell it and obviously we know that back in the 70’s back in the 60’s how cheap property was compared to now. People buying properties for $11,000 $12,000 even my parents back in ‘88 when I was born bought a property for $125,000 or $120,000 or something like that. That property right now is worth about $1.2 million and I’m now 26 so in 26 years it has gone up 10 times what it was originally. So you see it going up she said what the problem is with negative gearing times get tough we sell the property and then we miss out on the long term opportunity of the property.
Going into more detail about negative gearing she highlighted that the middle class potentially lost around $13 billion in 2007 and 2008 on negatively geared property investments. So I don’t exactly know where she got those figures from but somehow maybe it was from the ATL or something like that but predicted how much people were claiming as losses on their investment properties and worked out to be 13 billion across Australia.
What I thought was also interesting and really exciting she talked about how many people in Australia actually own investment property and 5.4% own one investment property. So if you own one investment property you’re in the top 5% of investors in Australia which is pretty cool because 95 % of people don’t even own one investment property. That’s crazy how can 95% of people not own even one investment property and an even crazier stat is 0.07% not 1% not .1% but .07% own more than 6 properties. So if you can actually get to that point where you own more than 6 investment properties that really puts you in the top .1% of people or.07% of investors. So it just seems crazy the time all the people in Australia that only .07% own more than 6 properties. That’s definitely someone that I want to be in the future.
She also talks about something that I really like cause there’s a lot of people who talk about market cycles and there’s a lot of fear around market cycles like Sydney at the moment has been booming. Is it too late to buy in? Is it going to crash? People emailing me saying that they want to buy but they’re not sure because I think prices are going to go down. Some people are saying prices are going to half which I think is crazy but Strong’s more she says try to have more important and more focused on your strategy rather than having to focus on the particular cycle of the market. Because if you know your strategy and you invest while using your strategy then it increases your chances of making money.
Something that was also really awesome and if you’re thinking about becoming a long term investor you’re going to want to hear this one. She said that Australia in general has an under supply of properties. In fact in 2014 there was an under supply of over 300,000 properties. This means there’s not enough properties by three hundred thousand. There’s a deficit of how many properties we need in Australia vs how many properties there are by 300,000 and it’s expected to grow that deficit is expected to grow to over 600,000 by 2030. So in the next 15 years that under supply is expected to double which is crazy so what happens when there’s more demand and not enough supply prices tend to go up. So I just thought that’s the sort of stuff was really awesome.
She talks about the long-term sort of stuff and a lot of trends about birth rates and all this sort of stuff of migration and population growth in Australia and truthfully the long term just looks like up and up. Like population is just growing and growing. It doesn’t look like it’s going backwards and so one of the things I look out for whenever I’m researching an area to list properties on Onproperty plus or something like that is, is the area growing or declining? Because if the area is declining the red flag and it could mean that prices might go down. However if the area is growing then generally that’s a good sign so in terms of the Australian population and it seems to keep growing then that’s obviously a continued good sign.
So that’s just a snipit of some of the things that I got out of Dymphna’s webinar. I really enjoyed the webinar I thought it was really valuable I love the idea. Probably my favorite takeaways was the fact that the biggest mistake investors make is they trade property and the fact that by investing in negative gears when times are tough it means that you would have to sell your property. So why not invest in a neutral geared or positive cash flow properties and when times are tough it pays for itself and you don’t have to worry about selling it. And I also really really love that idea or the fact that the next property deal you do should set you up for the next two to three property deals.
So there are some of the things I took away from Dymphna’s webinar. If you want to check out the webinar and I really suggest that you do it’s definitely worth spending some time and listening to what she has to say because she is probably one of the best property teachers out there. I wish you did more free stuff but this webinar is free and when she’s doing the free stuff you got to get in on it. So go to onproperty.com.au/d in order to sign up for that webinar secure your spot and get into it. Again that’s an affiliate link so I really enjoy that I hope you enjoyed this overview I hope that you learn something and that your next property deal that you do is going to set you up for the next 2 to 3 properties after that.
Ok guys that’s it from me again you can check out the webinar onproperty.com.au/d and until tomorrow stay positive.