How To Create A Property Strategy for 2019
2019 is a new year and a new chance to invest in property. Here’s how to create a successful investment property strategy in 2019
Book a Free Strategy Session – https://onproperty.com.au/session/
0:00 – We are so excited about 2019
1:35 – First look at where you’re at right now
3:21 – Assess what you can borrow
4:55 – Look at where you want to be
6:59 – Set the goal of replacing your income with passive income
9:05 – Focus on what you need to achieve in the next 12 months to move you closer to that long term goal
11:18 – Having a clear strategy makes decisions super easy
12:36 – Understand what’s holding you back
15:22 – Once you know this you can set your strategy
16:33 – What are your most important next steps? Make those habitual
19:00 – If you need personalised help on creating your strategy
20:07 – Never start the year without planning the year. Live with intention!
Our Goals For 2019 (Feat. Simon Everingham) – https://www.youtube.com/watch?v=3Rnvgu3k1Uw
We’re coming into 2019, it’s a new year and new opportunities to invest in property to move your finances forward. So in this episode we wanted to talk about how to create a property investment strategy for yourself in 2019. So Hey, I’m Ryan from on-property, helping you achieve financial freedom. I’m joined by Ben Everingham buyer’s agent from pumped on property. Makes 70. No always so super excited for 2019 and I’m really excited for the year. How about you?
Oh, I can’t wait. I haven’t actually felt this excited about a year and at least the last rate like I’m like ready to.
I know I’m really ready for 2019 and I’m also planning on living the year extremely intentionally. So last couple of years I didn’t really set goals. Um, whereas this year I do have goals and want to live with intention and really move my life forward, get good habits in place, grow my wealth or that good stuff.
I love that man. Like I was just catching up with a client this morning and he talked about this two day or three day retreat that you just went to and I’m like bucket list 19 straight away on my own and do what you just did. Like I’m the same. Like I just want to lead a really fun year, really present year and just keep kicking ass and keep moving in the direction of financial freedom for myself.
Yeah. And we want that for you guys as well. We want you to get to the end of 2019 and to look back and feel like you’ve had a successful year, that you’ve kicked some goals that you steps closer to financial freedom, maybe acquired some of those foundational properties. So that’s why we want to talk about how to create a strategy because really it all starts at strategy. Yeah. So I think the first step in 10 years
identifying what it’s just going to pull down east Easter. Really just sit, sit down and go, you know, where are you right now? Like where, where are you starting from? You know, what does your life look like? Where are you at financially? Where’s your savings or equity or cash position at right now and just taking a bit of, you know, well it’s the end of year side of a new year. Just a bit of a check in terms of where you actually have.
Yeah, so that’s the biggest thing. Start and looking at where you’re at because you need to know exactly where you are now before we can start looking at where you want to be and what’s the steps to get there. So as Ben was saying, looking at your net worth position, so looking at your assets, looking at liabilities, looking at the financial commitments you have. If you already own property, then obviously you’ve got loans and things like that and then also looking at your budget, where are you spending money? How much are you earning? All of that. Taking time, taking a night to really go through that and say, okay, where am I at financially? I know that you’ve just gone through that process personally as have I have sort of taken stock of,
you know where I’m at. I’ve actively worked the same as you are to reduce a bunch of fixed costs in my life, um, and taking stock so that I can take advantage of the market conditions that are presenting themselves as the next few years.
Yeah. And just really doing that and working out where at kind of naturally leads into what you’re not happy with your current situation and where you would rather be. So you’d be budget is extremely tight and you want to have more passive income. Then that kind of naturally leads you down to okay, well where do I want to be?
Yeah, we’re going to continue that. Cool. And so from, you know, once you’ve taken stuff, if your current financial position as Ryan said, like, you know, effectively your budget, maybe talking to a mortgage broker or your bank manager about what potential you have to borrow money in the new year, not because you’re going to spend it on anything, but you know, I’ve just gone through the process with my broker of knowing what I could do. So it gives me an idea of what ranges I can be looking at if an opportunity
presents itself. Yeah, let’s just hone in on that because that’s a really good tip. Knowing your current financial situation is really important, but also knowing your potential to borrow is really important as well. So if you are thinking about investing in property, speaking to a mortgage broker and finding out how much could I borrow if I wanted to invest or if you can’t borrow, what position do I need to be in in terms of income or in terms of deposit to be able to borrow. And so finding that out really puts you in a court
position. There’s a huge myth at the moment that the Australian media is been. I’m hammering for about a year and a half, which is it’s hard to get money. It’s actually super easy to get money at the moment as long as you qualify for the boxes that the banks are looking to tick. So don’t be put off by sentiment around. It’s hard to get money. It’s completely easy, especially if you’re a first time investor. Maybe you’re on your own home or if you’re, you know, you haven’t bought property before, it’s one of the easiest times to access money that I’ve had
saying. Yeah. So it’s more difficult for those people that have larger portfolio instead of trying to go again, but if you’re going for the first time in 2019, then it’s not as difficult as you might think. Absolutely. Yeah. So the next step is then to look at where you want it. This makes me so excited. Thought we were gonna be doing another awkward silence.
Um, you know, looking at where you want to be. So powerful. I think it’s the funnest part of the new year for me. Like actually getting to design your life or live with intention like you said. Yup. I’m really sort of sitting down and going, not just financially. Where would you like to be by the end of the year? Birth. What type of life would you like to lead from a family perspective, from a health perspective and really nutting out what would make you feel great at the end of the year? Plus make every day every week. A lot of fun and you went through it and I think looking at where you need to be, it’s not just where you want to be at the end of the year, it’s way you want to be in 10, 15, 20 years.
That’s probably the first step. What’s your big financial goal and then scaling it back to the year and saying, okay, what action items do I need to take this year in order to move me forward towards my 10, 15, 25
year ago? So that might be buying one property this year. That might be building a granny flat on your existing property. It might be paying off debt and saving a deposit, but having that longterm goal in mind is really important. I think it’s so important that if you don’t have a longterm goal, and it was really difficult for me to actually identify what know where the hell do you want to be in 15 years is kind of a big question. Do you say, I don’t want to be a billionaire, so you just say I want to replace my income, you know, how far do you shoot here? And what I’ve realized is, like Brian said, I just, I just wanted to replace my base annual income, so whatever I was ending at work was effectively the goal that I set in place and I’m working towards that like I’ve still got work to do.
But I think if you don’t have a goal financially, that’s immediately where you start because I think most people that are moderately risk adverse, like we could probably do that over 15 years. I think that’s really important idea as well, is that setting that goal to replace your income with passive income so then you can still live the current life that you’re living by, your living on passive income. That then frees you up to do whatever you want to do. Whether it be to stop working and just live a crazy life. Whether it be to continue working on what to pursue that excessive well. So if your goal is millions of dollars in Lamborghinis and mentions, maybe start with income replacement first. Because once you’ve replaced your income, you now have a full week. You’re now freed up to focus on that wealth building rather than making someone else rich in a job that you hate.
So starting with that baseline financial freedom. If you don’t already have a goal, that’s a really great place to start. Yeah, it’s a beautiful place to start, so I think starting or finishing 2019 with a plan in terms of way you want to be in the feature and what the next 12 months should look like and then you can even go that step further. As Ryan said, you know, you’re effectively reducing your longterm goals into shorter chunks in the next 12 months. If your goal is to be financially free, then you choose an asset class that works for you isn’t as property shares, commodities, crypto, whatever your thing is, and then you just learn the skill set to actually be able to execute a strategy that will allow you to achieve that longterm goal without bringing the house of cards thing, do it. And so I think, yeah, once you’ve identified that goal, then it really comes time to, as you were saying, work out your strategy and work out how am I going to get there? And there’s so many different ways to get to an end goal like this. I was going to use that same. There’s so many ways to skin a cat, but I remember people have gone to Adam. Hey Chris. Chris is a way of saying that we’re trying to kill two birds and standard scheme. That’s enough room to swing a cat. There’s all these strange things. Violent man that doesn’t eat meat. Oh, I was at the shops today and girl was wearing this teacher
saying I’m eating animals as weird. Absolutely loved it. Um, but yeah, getting back to the strategy, there’s so many different ways that you can achieve your goal. You need to look at your risk profile and what investment vehicle and what strategy is going to best line up with you, who you are, what your risk profile is and how you want to invest
to break that down. Like regardless of what you are doing, asset class was, it’s basically as simple as setting a line in the sand in 12 months time of wave, like today figuring out a way to do that and that for a property person, and I’m a business person so I’ll just speak from that school like from a property perspective, maybe sitting down and going, okay, I’m not in a position to borrow money or I’m not in a position to actually buy something because I don’t have a deposit. Well that’s the only thing you focus on the cheek. Getting yourself in that position. If you’re in a position to buy something, then it’s a case of getting comfortable about which market you’re going to buy and getting comfortable around a clear investment strategy. And then, you know, slowly taking those steps until you feel comfortable to enter the market with that competence, you need to buy the right thing.
Yeah. Well me and Simon just did a video on reflecting on 2018 as well as looking at goals for 2019 and his goal for 2018 was to be in a position to buy a property at the end of the year. Ideally he would have liked to buy a property, but he got himself. He savings deposit is in a position to buy. And when I spoke to him, he was negotiating on a property. I’m not sure we’re still playing hardball with real real. But the agent’s been really good as well. Yeah. So he got himself, so his whole year was focused on getting himself in a position to buy. So you may need to do that. Or if you’re already in the position, then your focus becomes, okay, what property do I need to buy? What market do I want to be in? And depending on what type of investor you want to be, maybe you just want to do something simple like the two properties to financial freedom strategy where you buy a high quality property, build a granny flat on it, buy another one, go to grand and have for incomes coming in from two properties or maybe you decide that you want to be a more active investor and want to push you.
I’m development subdivision or all the different property strategies. So it’s up to you how risk adverse you are and how active you want to be as to what type of property investing or what type of other investing you pursuit. It’s so interesting because, uh, you know,
I’ve been really pleased strategy now around what I like to buy for myself. It means that I’ve sort of got these blinders on or blankets on and it makes making decisions very easy. Like a friend of mine gave me a call. He’s a builder building company down in Sydney and he’s like, dude, I just found this amazing site. We’ve got a buyer. And I’m like, no. And he’s like, you don’t even know what it is and I’m not interested like it’s not in line with what I want to do right now. And so you save yourself with a good plan in place at the start of the year or the middle of the year to actually, you know, just make better decisions and not waste any emotional energy over things that you don’t want to do and just get good results in the things that you wanted to. Well that’s the thing. If you decide that you want to invest in property that’s in high quality suburbs and you want to get a seven plus percent rental yield by building a granny flat, you decided that that’s your strategy because you feel like that’s longterm.
It’s risk averse. That’s what you want to do. When someone comes to you with some fandangled strategy that we can do this development and make $100,000. It’s like, well, does that fit into my longterm strategy? Is that going to deliver me the passive income and the positive cash flow that I want? And you’re like, well no it doesn’t. So you just disregard it and you keep your focus on where you want to be so you know where you are, you know, we’d like to be, um, I suppose, and now the step that most people skip a little bit I think is really important in understanding what’s actually holding you back. Um, as brutal, as easy as to say like there’s a reason that people aren’t financially free and it’s generally because of what’s going on out here or here as opposed to, you know, the reality of their world that they could create for themselves.
Most people with $100,000 combined income could actually replace their income over a 15 year period. Ninety five percent of Australians don’t do that because of all of these. The challenges that we face and holding you back might be things like internal mentality that you might feel like you don’t deserve to be rich. Things like that. But it could also be things as simple as you’ve been lazy that you’ve been watching too much netflix instead of looking at properties or that you’ve been lazy with your budget. Which I definitely have the last couple of years where you’re not diligent and focused on cutting out the excessive costs in your life and so you’re not able to save as much as you’d like because you haven’t been focused on that. So that’s definitely been holding me back, is not working enough and then spending too much basically spending too much as well and I’ve only just realized it.
Then I’m like, Shit. That was probably a deposit for a property in the last two years that I’ve just sort of blind by not really thinking about it. Yeah, well that’s the same with me. I’ve identified those things that have been holding me back that I didn’t realize were holding me back. But as I sat down and looked at them, I was like, okay, yeah, this is fine. Like even things like going out for coffee but going out with the kids and then buying everyone breakfast and then all of a sudden that $60 to $30, it’s a $3 or $5 coffee. This $60 just because you spent it all on smashed avocado and it’s like, what if I was more prepared in that situation? I wouldn’t have done that. That $60 that could go towards paying off debt or saving for a deposit. I just wasn’t diligent enough and I was too lazy with my money. That’s something that was holding me back that now I can fix. There can be other real things like not having a plan, not having a budget, not having a team of people that you can speak to around you. Not having someone in your social environment that has bought property or achieved financial freedom.
It could mean you’ve been watching too much about stuff and you’re just like pulsating in your brain right now because of information overload or fatigue or you just had a huge year and maybe you need to take three months to just reset like I’ve had to do in the last three months and just find yourself again. Get yourself in a really good head space so that you know you can take that sprint and take some action here. Again, or maybe you don’t have a job and you need to get a job, money without a job or without an income is very difficult, and so yeah, assess, take this time to assess where you’re at. Now, take the time to look out where do you want to be long term, what’s holding you back from that and what do you want to achieve this year? That’s gonna move you towards that long term goal.
Getting really clear on that. Then you have a focus for the year. Then you can create a strategy for the year, so that is to save the deposit. Then you start getting granular and saying, okay, well what do I need to cut out of my budget in order to be able to save more money? How can I start automating my finances to pay myself first? Or if you’re ready to buy, okay, what steps do you need to take? You need to identify a market. You need to research southern’s. Find the good southern, so invest in, start looking at properties. You can then get your action steps out of that. Once you’ve broken it down into what’s the big thing that I need to accomplish this year, absolutely not. I love that, and then that kind of perfectly ties into what are your next steps really premier and you know, that can come in a whole range of forms based on what Ryan just said, but effectively the clearer your plan for your year in terms of exactly what you want to achieve at the end of it.
The act of those next steps sort of just unfolded in front of you as you go. And for me, for example, my big focus in 2019, it’s going to be my business and moving my business forward and I looked at that and looked at where do I want to be at the end of the year and then I looked at, okay, what sort of steps? What sort of things do I need to do in order to make that happen? Then looked at what are the key drivers, what are the key things that if I did, if I could only just do these things, that would be the biggest things to move my business forward and that’s creating videos and that’s training articles and so what I did was setting a habit in my life that I started doing is that each morning when I wake up, after I make my bed, brush my teeth, do my exercise.
The first thing that I do in the morning is make a video. That’s awesome. So I’ve. I’ve actually created a habit in my life that now the key drivers I’ve worked out, what’s the key things I need to do? It’s habitual now, so in the mornings I’ll create a video and then I want to get to the point where in the morning I’ll do a video in an article and then I just do that every single day because I know those actions will lead to results. So now I just have to create a habit in my life that that will happen automatically as a result of that. Yeah, I love that. And my goals for the new year, I had to live a much different life than I had been an issue here and that much more in the present, more quality time
at work and with my family and more time actually understanding what it is it’s making me happy for the year. So more little trips and stuff like that financially, um, I’ve got a goal of just paying off as much debt as I possibly can by the end of next year and just simplifying that side of my life so that there’s more of a passive income stream coming through from a property perspective. And I never say never. But if a great opportunity comes up from a property perspective, um, then I’d like to take advantage of that as well as you said to me, I’m not going to invest in more programs like, Hey, I bought this one and this is so difficult when you’re an investor that loves what you do and when you get good at what you do as well when you make, you know, short term and longterm money. Um, it’s, it’s kind of addictive. But I, I’m thinking initially I’m going to try my best to just pay off some debt, but it is going to be a hell of a year from a buying perspective in depending on how good a year it becomes, I might have to take advantage of that.
Well, I definitely want to get myself in a position at the end of the year to be able to buy property in 2020. So that’s going to be my goal. So hopefully this has helped you guys. If you need personalized help on getting your strategy set, if you need someone to sit down with you and to say, okay, where are you at now? What is holding you back? We’re do you want to be and what’s likely going to be the best strategy to fit into your risk profile? Then ben and the team over at pumped on property are offering free strategy session so you can get on the phone with them for about an hour, talk through all of that sort of stuff and you can start 2019 with a clear strategy that the action steps you need to take. And the big goals, the big things that you need to do in order to move yourself forward, you can then decide to work with them if you want. That’s totally fine obviously. Or you can go on and you can do it yourself. It’s really up to you. So go on property.com dot a u to learn more about that and to book in Australia. The session time that suits you. I think we’ve got a couple left for the year or there may be all finished for the year, but definitely in the new year those strategy sessions will be there. That’s just such a good way to start your year, right? Get really clear on your strategy. Really clear on what you need to do in the new year.
One of my favorite people that I’ve followed for a long time, team Ryan and he sort of always said never start a day without planning the day. Never started a month without planning demand. Never started out planning the year and I think it’s a really nice opportunity to do that now. And I think it just someone that’s been doing that religiously now for almost 10 years. It’s just incredible how much you can achieve when you’re actually focused on working towards one or two things as opposed to just drifting through, which is really easy to do as well. It’s easy to just burn a couple of years without moving in the direction where you want to be and I think I’m
culprit of that is that the last couple of years will really like rest and focus on happiness because I had achieved that financial freedom and so my wealth, my wealth growth did go to the wayside because I wasn’t diligent, wasn’t focused on that. And that’s why I’m so focused on living intentionally, as you said, planning out my day is planning out. My Mom’s putting out my years and living with intention. And that’s really what creating this strategy is about is so you live with intention and you’re not just drifting through life and getting to the end of the year and not having
moved any closer to your financial goals. Now it’s easy to do that and the way that I think deserves a father with a couple of kids or three children is this concept of just how much time am I going to try it away from them before I get my stuff together and get financially free properly. Like each year is a year that I’ve had to work that I haven’t been able to do whatever it is that I’m supposed to do in this lifetime. You know what I mean? And that’s. It’s a really intense way, but this is young. You always thinking intense ways. I think if I can figure out how to do this in 15 rather than the average person taking 45 to get to that financially free point, what could I do over the next 30 years? Like what? What were you doing together? What could you guys do over that period of time? You’ve just got free choice and you just. You’re doing what’s best for you and other people over that period of your life. It’s just everything excites me at the moment because I’m taking the picture a lot more than I was before.
Yeah, me too. I got like a five year plan that I’m really working towards now, so I’m really excited because those I get excited about the daily actions because I know what I’m working towards so awesome. So hopefully you guys can take this, these tips and you can set a strategy for yourself in 2019 that you can live with intention and that we can talk to you at the end of 2019. Maybe you’ll even work with pumped on property by a couple of properties with their help and that you get to the end of the year and be more set up for your financial future. That’s what we want for you guys. We wish you the absolute best. Go ahead. If you want, check out the video. That means Simon did on our goals for 2019. You can see where he’s at and trying to buy a property which is really exciting and learn more about my goals over there. And again, if you want to book that Free Strategy Session, just head out to on property.com dot EU. Thanks so much for watching guys, and until next time, stay positive.