March 2019 Property Chat with Ben Everingham

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In this week’s property chat we talk about Ben’s first ever live events, some surprising things coming out that that plus take a look at the Sydney market and ask why are people considering buying in Sydney again already?
Book a free property strategy session – https://onproperty.com.au/session/

0:33 – Ben just did 2 live events
2:15 – We will be running our own live events this year!
4:55 – Should you look at buying Sydney/Melbourne now?
7:28 – Don’t rely on sentiment, rely on real data
9:05 – Why are people looking at Sydney again?
10:48 – Within individual markets there are little pockets of awesomeness
10:54 – People have implemented the 2 Property strategy in Sydney
13:19 – Davo’s Story: He set himself up for financial freedom in just 3-4 years
16:24 – Figuring out your motivation for work/life when you’re financially free
19:48 – Getting clear on the 3 stages of property investing
21:05 – The 4th stage of property
22:05 – Ben negotiated his build contract
24:05 – Ryan’s debt reduction update (paid off 5-10% of debt this month)

Core Logic’s February Update – https://www.youtube.com/watch?v=_tpseYFbiM4
Core Logic’s March Update – https://www.youtube.com/watch?v=H9utb-okwIw
Ben’s YouTube Channel – https://www.youtube.com/user/pumpedonproperty

Recommended Videos
Feb 2019 Property Chat – https://www.youtube.com/watch?v=I1WVX4yPPkQ
Jan 2019 Property Chat – https://www.youtube.com/watch?v=q0HVkja3yPc

Transcription:

Hey everyone and welcome to on property. Ryan here with Ben who has come down to Sydney. How’s it going? So good. The same person then? Yes it has been too long. It’s been nearly two months cause been hanging out like pretty much every week for years. Well sadly now I’m down here. We have just been to the beach and been for a swim, which is really good. And once a month we’d like to do a more casual sort of chat around property around the market, around what’s happening in our lives as well. So this is the property chat for March. So Ben is down here because he did a live event in Melbourne and then you just did a lot of then in Sydney last night. Yeah, first time we’ve ever tried live events and how to go. I was super nervous like did he? Honestly he may know and I was like Ah, what am I doing and stuttering and my whiteboard markers weren’t working and drinking water all the time cause I was like, like it’s the first big speaking thing I’ve done.

So yeah, it’s funny cause we get up and camera up on camera every single day almost. And we’re always recording these videos that go out to the thousands of people. But when you get up in a crowd of what 40 or 50 people? Yeah. Um, say Melvin was like a baptism of fire, but I did practice and, and I knew my content, so that was really cool. And then Sydney was epic like we had, we expected about 30 people to turn up and ended up having 90 and just, cause I had done it the night before or the pressure was off and I felt like as comfortable as I am on camera. It was really cool. So what did you talk about at these live events? So I talked about my thoughts on why 2019 is and isn’t the best time to buy property in the last decade.

I talked about where people could be if they had actually bought property 20 years ago and where they might be able to be based on some assumptions. And then we talked about the two properties to financial freedom strategy a little bit deeper than normal, which was sick. And then like four of the main rules around investing. So artists tried to load it up with the big things that if people were just watching for the first time would be loving touch and did most people would go to the liner then it’s already know you are man. So many people for now community where there was so sick, like people that have been watching for years wrapped up, which has inspired me to ask you last night, you know, I’m just going to make us still alive to them this year. Sydney, Melbourne, Brisbane. It has to happen and it’s more a workshop than an event because I hate the speaking to people.

I like to like actually create stuff together. Um, so I, I’ve pushed back on Ben for years not wanting to do live events. Are they asking you for like three years? Maybe, but I think, I think it never quite resonated with what we were trying to communicate. Like the way live events are traditionally done, being in a very corporate place with the corporate chairs or when a bro, it’s not really my vibe. Yeah. Necessarily yours. And so I think it was, it took you actually taking the step and doing it to realize that yes there’s value for the people out there but us doing live events that it would be worthwhile for us to step up and do it. So I just want to do one sicker then once a year in that for all of the clients that we’ve ever worked with in those cities plus their friends plus some select people from the community that just want to come and not get sold anything and just walk away with like so much confidence and so excited about things again.

Yeah. And so just a chance to, for us to, you know, share some extra stuff with you as well as you to meet us and to meet other people in the community as well. We really valuable, have some beers, have some food, people like swapping numbers and stuff like becoming mates, like clients that hadn’t seen each other before because everybody feels isolated as an investor. Right? Like I still do and I know like messy this, this isn’t this right now. Um, so people are connecting and getting to hang out and like doing meetups after it and that’s what it’s about man. Like actually connecting with people in your city that you can become friends with so that when you want to talk property, you’ve got that other person that wants to talk with you, not you made. So you partner who you’re dragging through the mud kicking and screaming towards it.

Yeah. And that, that’s often been me in the past is I talk property at someone. So I’m just hanging out with someone and then I just start yammering on about property. You are about investing or anything. They just have to listen to me. They probably don’t even understand what I’m saying. I just want to talk about it. So that’ll be good. So stay tuned for that. That’s something that we’ll work on and get back to, um, you guys on what we’re planning and what we’re doing and we’ll do some marketing around that. So obviously join our mailing list if you haven’t already@pumpedonpropertydotcomoranonproperty.com dot a u because we’ll email out about that when we are ready as well as you subscribe to the channel. I’m sure we’ll talk about it too. So what were some of the, I guess questions people had or something that surprised you about the event?

What was sick was we did like a 45 minute Q and. A. He ended both cause I hate speaking at people but I like to speak with people. And so we, a common question, which I was just talking about, the end of the beach was a lot of people in Sydney and Melbourne right now. It felt like it’s close to a bottom and that message was being communicated a lot. Should I actually look at Sydney and Melbourne in the next 12 months? I really want to buy and I think it’s cheap. And what I said on stage, which is the same thing I want to say now is I don’t believe were at the bottom yet. And I think if you can just be patient for one more year, maybe one and a half, he might be able to buy it seven to 10% cheaper than you can right now in both markets. And I’d, I just don’t want to say people get burnt this year. So that was a message that was asked probably in three different ways. It boasts of ants and I just want people to be clear on, and there was a really great video recently put out by core logic talking about, um, just the February update for the year, which talks more the Sydney

and Melbourne markets as well as Brisbane, which I’ll link up down below. And something that was really interesting about that video is kind of the fact that we’ll, Sydney actually peaked in July of 2017 so that was what, 18 months ago? Yeah. That Sydney peaked nearly two years ago actually. So Sydney’s effectively saying Sydney has been declining for two years effectively. Nearly. Yeah. Well we are recording this and well this is like February but it’ll go out in March. And so yeah, nearly two years. Sydney has been declining for, but there definitely wasn’t delay. I feel like in sentiment, I feel like we knew that Sydney had peaked, but the general market was still, the hike was still going for Sydney. The home was still going from Melbourne and they really felt like mid last year that all the steam had run out and everyone knew that, oh yeah, Sydney is in the decline. But by that point it had been going backwards for a whole year. Yeah. And there’s a

huge lag effect that most people don’t take into account. Like when things, when you shouldn’t be investing is when most people are sucked into it because it’s still, the heart is still building momentum. But the fundamentals of shifted and often at times like this, you know, maybe six to 12 months from today when things are, you know, really actually turning for the positive, they start, you know, unfortunately the lag effect will be another 12 to 18 months from there before everyone comes back into the market. So I like these opportunities personally, but I understand them as well and it takes time to understand them.

And I think that’s why it’s so important as well to look at things like core logics, monthly review that I’m now subscribed to and now each month, because when you’re relying on market sentiment as a whole or you’re relying on what the media is saying or anything like that, that can actually be delayed or can be your head of what is actually happening in the market. And so getting real data like this video from core logic where they’re talking about, well how much is Sydney declining in the last month and is the decline accelerating or reducing? Because obviously if it’s accelerating, as in this declining more and more, then it doesn’t look like it’s necessarily going to stop. But if the rate of decline is slowing down, then that indicates that we’re moving towards the bottom. Was the growth, was the decline accelerating at the moment? I can’t remember.

I’d have to go back and watch it cause I, I wrote down a whole bunch of notes but that’s something that I didn’t necessarily write down. I know that some markets we’re still accelerating in the decline but I can’t remember which ones they were. But it’s just, I think that’s another data point for people to look at along with something that you haven’t told white month in review report is looking at those trends of decline or growth and see whether they’re accelerating or decelerating. And you know that, did he, I probably what took 10 minutes, 15 minutes to watch. Yeah, it’s a 10 minute video. The Herron, Todd white report, excuse me, would take 10 to write about Melbourne,

Sydney and Brisbane, like a 20 minute investment in that in month we’ll put you in a position where you’re more educated than 99.9% of Australians and investors. So. So why do you think people are looking at Sydney again? At the moment when we feel like maybe it’s a bit early for Sydney, what makes people, what do you think makes people be like, okay, now I’m ready to jump in? I think because sentiment and the decline has been going on for almost two years now. It’s got to that point where people are like, I’ve been doing nothing for a long time. I need to start looking at something. The first thing that we naturally look back to is what’s close to home. Like we love buying first times and second homes in first investments around where we live and you know, 40% of Australia’s population or whatever that century, 25% of Australia’s population, maybe 20% is in Sydney.

And therefore a big percentage of people are happy to say that. Or the presenters statistics and bite off on the spot. And he said, I don’t know why I came from that. I was thinking about like market size. Um, but lots of people live in Sydney and those people are sitting there looking at their city going, it’s been pretty bad here for a wall. And for some reason humans are massive optimists in a time when they should probably still be a little bit conservative right now or critical about this marketplace. And so they’re saying a 10% decline has value where it’s probably going to look more like 15 to 20% from 2017 date of 3020 top to bottom. Yeah. It was interesting to see corelogic say that Sydney is now the same price that it was on average two and a half years ago. So if you purchase two and a half years ago, you kind of, you’ve got some growth but now you’ve gone backwards again.

So it’s really interesting to see that in that two and a half years you’d be had a sat on the fence. That’s not that big a deal. Another thing that came out of bunch from the live events was this concept that you know, I mean Ryan both talk really generally about Sydney or Melbourne or timing, but the reality is Sydney’s thousands of intricate little straits and suburbs and property types and styles and so is Melbourne and so Brisbane and everywhere else in Australia. And it’s easy to just ride off Sydney or Melbourne. But within those markets, even in this current environment, there’s actually little areas that were just so cheap for so long that have caught fire because everyone has finally realized that they are cheap and little pockets can actually still be performing. Okay if you’re looking at fundamentals. And so that was a big takeaway from me because I know I can be sort of vanilla and black and white with don’t invest in Sydney. And that’s because I want to protect people from making a mistake. But the reality is if it’s a 15 to 20 year investment and you’re still doing your fundamentals and it’s a home, then that’s a different conversation from where am I going to invest in the next 15 years to get myself financially free. And the thing

I remember what you were saying of the beach is that a bunch of people who you met last night had actually implemented the two property to financial freedom strategy in city.

Yeah. That bought properties out in the inner west or Sutherland Shire and build granny flats on them or plan to, and unlike, you know, that’s a much better result than getting it to two and a half percent rent return on your average time. These people are getting those yields closer to that 5% mark and giving themselves sunny that longterm Sydney is going to absolutely crank, like don’t get caught up in this temporary period of time to reflect the longterm performance of this market. Sydney is going to be worth a lot more in the future than it is today. But if you can get that cash flow all the way through as well, like one I’ll give both. Yup. Why not?

And so I thought that was really exciting to see because I guess me running on property is that I don’t have a lot of one on one conversations with people unless they come up and approach me in the street. And you as a buyers agency, you talked to a lot of people at the start of their journey when they’re looking to buy a property. And so for you to connect with people who’ve already done it, who have never needed to email either of us asking questions, who have never needed to hire you as a buyer’s agent who have just listened to our content, understood the two property strategy and then gone and done it themselves. And they’ve set themselves up for financial freedom in a short period of time. And uh, just as beautiful to watch. Didn’t you get someone up to talk about what they’re doing? Yeah, it’s a couple of years,

like one of their clients Davao, he’s a young guy in Sydney. He’s 26 years of age and for the last 10 years he’s been a linesman with Energex and he is just an absolute legend of a client. And a guy like, he came to the Melbourne Cup with me last year, actually fly down and just had a sick time. And he, he effectively bodies first time with us three years ago in Brisbane, really close to the save a day. And then he still needs to renovate it. Like it’s got a lot of upside. He bought in the second highest performing suburb in Brisbane in the last five years. Like when you that it was going to do I can it did. Good job. Yeah. Acacia Ridge for anyone who’s interested in that suburb. Um, the runs not over there but it’s over for now. And he bought that property set and forget it and then recently came back to us with another deposit that, you know, he, he did hard stuff like he was living down here at Cornell or in a unit with these mates, decided to move home for the last year and a half, put his head down, save, not do any big holidays after he’d been traveling the world like every year type thing.

And he has gone out and bought this piece of land. He’s building a house and the granny flat on it. Nice. Speak Block closer to the city in Brisbane last night, which was so cool. Is he got up and said, I’ve now done this. I’ve locked in this sort of long term. What, what were you calling this morning?

I call it you. You’ve set yourself up for financial freedom. Yeah. So set himself up for financial freedom because those properties will go to pay themselves off. So he’s not financially free now, but he owns the properties that he needs to own and that because he’s getting enough rental income coming in, they’re paying themselves off and eventually he’ll own them outright and be able to live off the rental income from those properties. So I love financial freedom is set up, but he’s not there yet. But now he has freedom of choices of what to do because he’s young, right? 25 26 or something like that. And he knows that in 15 or 20 years he’s going to own these properties outright and be able to live off the rent. And so he’s got this 1520 year gap whereas that, well what do I want to do with my life? I’ve got to pay my bills but I want to have a good time as well.

And that’s the seek thing cause he’s planning is to, you know, throw it all in later on off the light if he, she wants, it’s all completed and then just go to Bali and Lipa six to 12 months. And He loves training. Like he’s in the heaps of different things and just go give himself some time to do that and to figure out what he wants. You know, like coming straight out of school and then going into a trade. It’s what a lot of people do, but because it’s such a like this is what you’re doing next and then you just get caught in it, he needs to step out of it to decide, you know, what is next. And he’s got this like baseline of financial freedom that he will guarantee the future once he hands them out. Right. So I love it.

And I guess one of the benefits of going to Bali is that the expensive living, if you live over there is a lot lower. If you live properly, like the local, you can live their flight 15 [inaudible] yeah. [inaudible] an ex pat. It’s just when we go there, black ash cause it’s a week long holidays different. Yeah. And so I kind of had the same process when I achieved my pseudo financial freedom or aversion of financial freedom at 28 where I didn’t need to work anymore. Um, it took me a couple of years to really work out what are my motivations, why do I want to work, what do I want to work on and to get clear on what I want my life to look like. It really did take 18 months to two years to even figure that out. And so it’s really cool that he’s got the opportunity now that he feels set up and that he can go and do that at similar age to what I was. So maybe in a years time he’ll be 27 or something to work that out then and then to have the next 15 years to implement that and to live a great life while still working.

It’s crazy that you work that out in 18 months, man, because it’s taken me a lot longer than 18 months to figure out and connect these. Yeah.

And you’ve never stopped working. Yeah, I’ve never had keeping myself that bright. That’s the thing. I stopped working or I was working a little bit when you’d be like, let’s film a video. I’ll be like, all right. Yeah, just website maintenance and little things like that. Um, but yeah, I really stopped because I just lost motivation because I’m like, it’s, it wasn’t necessarily an intentional stopping. It was more just like I achieved this super ambitious goal that I’ve always had. I achieved it and then I was like, oh, what do I do now? I have no idea. And so I, I’m someone who when I’m motivated, I can achieve amazing things, but when I’m not motivated, China get me to do something that I don’t want to do is nearly impossible. And so I was just not motivated, so I just didn’t work. I went to the beach a lot.

I played a lot of Malay, like super smash brothers melee. Yeah. I spent so much good time with your family and stuff. Yeah. Yeah. It’s really cool. Like I just didn’t have the, I don’t have the guts to do that. Uh, I don’t know why I like it probably because sometimes I come have come from like a really fee based place in the past, but also like, you know, addressing it head on and trying to figure out while I’ve been going through it. It has been helpful too because it’s been like, that doesn’t work. That doesn’t work. That doesn’t work a thousand times. And now it’s like I’m slowly figuring out what’s working and that’s cool. Like that’s life, right? Like that’s the journey of life that we’re all on. And what I did was so extreme. Most people were willing to do that. Relocate to Noosa, spend your days on the beach.

Oh, Lucerne winter. So good. So I’m going to miss that living in Sydney. But yeah, what I did was extreme, but I think the opportunity, like Dave as you, you said too, I think so many people wait until they want to wait till they’re financially free and then they’re going to be happy. But realizing that financial freedom doesn’t equal happiness, that when you get to that end of the road, you’re not instantly happy. And to stop people waiting 20 years till they get there and realizing that they’re not happy and to give people that option so much earlier that you can acquire these properties in a two to five year period for a lot of people and you know, you can then start to seek out your happiness is I think going to be, it’s going to say people won’t have time and it’s going to allow people to really work out what kind of life they want to live and what kind of person they want to be, which I think is going to be so valuable to the world.

Yeah, it’s incredible. Like the better the quality, the choices that you can make for yourself, the better the quality of the word around you effectively and your own inner world, which is so important. Yeah, and one other thing that I’m really stoked about is we’ve always talked about the two property to financial freedom strategy going in three stages. So you’ve got to stage number one where you buying all the properties. Stage number two is when you’re trying to pay off that debt as quickly as possible. And stage number three is where you are financially free. And I feel like the way that we would talk about it was almost there, but not quite the words that we were using. I know that you were saying stage two we used to call acceleration and people like excel. What does, what does that mean? What are we doing in stage number two? So we’ve got some new messaging around that, which we’re going to do a video on talking and just making that super clear to everyone out there so you know exactly what stage you’re in and exactly what to do. So that’s just like a little teaser. But the good people out there that, um, we’re getting better at communicating this and this is a powerful message and the people listening now, you probably already know it, you probably absorbed it into the very core of who you are.

But it’s really exciting. Some of the stuff that we will be talking about in the coming months and just how clear this message is becoming and how easy it is for an average person to go on and implement this and achieve financial freedom. I love it. And I love the fourth stage that we’ve never talked about that you sort of created this morning around what happens after that, you know, it’s not just going to sit on a beach, it’s like you could do that or there’s an option to sort of talk about some other stuff. So yeah, it gets me hates, excited man. Yeah, I like teasing bit of a teaser there. There’s some good stuff coming out. So make sure you subscribe to the channel if you haven’t as well as checkout Benji Youtube channel, which you got a lot of great content coming out on there. So I’ll link up to that down below as well.

But yeah, so I think live events, that’s going to be super cool. Uh, lots of good videos coming out in the future. I’m currently paying off my debt. We just did a live strategy session where then actually coach me on my situations here session and haven’t had, cause Ryan knew exactly what he wanted to do now just in the habit for the next 20 years. It’s easy when you come, obviously having created the strategy, but now it was a bit of fun to do it as well. Yeah, there’s a live strategy session with a strategy that I kind of came up with, but I am, I actually just finished this morning negotiating the contract fixed contract price for the bill that I’m doing as well. So the original contract price came back at $469,000, which was 169 grand more than I wanted to despair. And I’ve literally spent the last three days hammering this builder to the point where we’ve got it down to 320 k’s.

So wow. That’s huge man. Like it’s been the biggest negotiation of my life and the build has been hating me, but it felt awesome and we got there. Yeah. So that made the builds going to potentially start soon on the land that you bought. Yeah, like finances next week. Um, which is crazy quick. And then settlements being brought forward to 50 days instead of 60. So it’s all going to happen, like by the end of this year, mission will be completed and there’d be a holiday home slash epic little investment that we have. Yeah, and so that’s super awesome to see as well that once you do it, achieve that end goal of the two properties to financial freedom. You can still do really cool stuff like, yeah, like you’re doing this really cool build projects where the building passion but also cashflow and this is like I saw you on your channel and saying, yeah, look my plans for the year, we’re not to buy any property, but I just bought one. Yeah. Sometimes opportunity comes up, especially in a market where no one else is looking and I love that. And so it’d be in that place where you do feel secure in your financial position, but when the right opportunity comes up, you can jump on it, but you don’t feel the urge that you have to do something I think is a really cool place that a bunch of people being be in in two to five years time, they’re going to be sitting in exactly where you’re sitting. Hopefully I will

to be like, well, I don’t need to invest anymore, but if the right opportunity comes up, I will, which massively lowers your risk and massively increases your chance of a return because you’re only picking the things that are exactly right for you. No, it’s really cool. Like I’m so grateful and really excited to sort of document it with your chair and my, my debt reduction has been going well. I think like this month went way better than expected, so be able to pay off around like five to 10%. Awesome. Um, this month, which is really good progress. Hopefully I’ll continue along that, which if I do, then that’ll put me paying it off by then end of the year. So yeah, fingers crossed and things keep going. Well, but yeah, that’s, that kind of finishes our March property chat. We hope that you enjoy this more casual. Sit Down, have a chat it out in the market. Super excited for the future. Super excited for 2019 we wish you the best and your property investment journey as well. Go ahead and check out our last property chat. I’ll link out to both the February and the January one. January we talked about mental health. February, I can’t remember what we talked about except the fact that Ben was obsessed with gardening. Yeah, no, I remember was gardening. I think he talks about how he just bought a property in that one. So I’ll link up to those and until next time, stay positive.

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