This Simple Property Strategy Just Works
Property investing can be overwhelming and some strategies are so complex and difficult it’s hard to work out what steps to take. So today I want to share with you a really simple property investing strategy that just seems to work.
0:00 – Introduction
1:24 – 2 Properties to Financial Freedom
1:57 – What exactly is this strategy?
5:11 – What makes this strategy so powerful?
7:40 – How this strategy lowers your risk
9:20 – This gives you a clear path to financial freedom
11:20 – You can adjust this strategy to suit your needs
12:45 – This is not a get rich quick strategy
18:10 – A simple property investment strategy that just seems to work
property investing can be overwhelming there’s so many different strategies that it can choose from and there can be these larger than life gurus who are going to teach you through their complex method how to achieve greatness in property but often it’s so complicated and so difficult that’s really hard for you to work out okay what steps do i need to take and how is this going to lead to financial freedom or whatever it is that your goals are so today i want to take the time to share with you a really simple property investment strategy that just seems to work it’s simple enough that people can understand it that people know what their next steps are that they can implement it and that they can actually move towards financial freedom and even more exciting is that this strategy is actually changing people’s lives in the short term as well so they’re able to gain choices in their life maybe not for financial freedom but they’re able to change their lives in significant ways and we’ll talk about some of that stuff as well so i hope that you’re excited to hear more about this strategy hi i’m ryan from onproperty helping you on your journey to financial freedom and a lot of you who have been following me for years will already know about the two property to financial freedom strategy and for some of you it might be the first time hearing a strategy like this and two properties to financial freedom is just that simple it’s purchasing two properties that ultimately delivers you financial freedom but the really cool thing about this strategy is that it’s not convoluted it’s really simple but it can also be flexed and changed and adjusted based on what your goals are so let’s talk through this strategy let’s talk through why it’s so powerful and let’s help you see whether or not this is something that you would like to pursue in your life and help you work out what your next steps are so what exactly is this strategy why is it so simple why is it working so well the strategy is a mixture of cash flow and capital growth so capital growth is growth in value of the property or buying in high quality areas where the property is going to go up in value as well as positive cash flow the property you see getting good rental income from your property which means you’re getting more rental income then you have an expenses on the property so this means you purchase the property and when you’re renting it out the rent that you’re receiving from your tenants is paying for all of the interest on the mortgage and paying for all the expenses on the property so it’s a mixture of the two and actually what’s really interesting about this strategy is you don’t actually need the capital growth element of it we want capital growth because why the hell not right if you can get it you want to get it but you also want that stability that we know that this property is going to be rented well into the future because we may even keep this property for our lifetime and this property may deliver us financial freedom so the strategy what is it it’s really simple you go out and you purchase a property purchase within this property ben and the team over pumped on property or working in brisbane with clients so they’re purchasing a house on a good size block of land and then they’re building a granny flat out the back or building a tiny home out the back of the property so you purchase a property in a high quality metro market so brisbane area in sabah that is expected to grow within the next 15 2025 years so high quality suburb you’re purchasing a house you’re renting out the house and then you’re dividing it up so you’re putting in a fence so the house has its own private backyard and then you building a tiny home out the back also known as a granny flat which has its own private entrance its own private smaller courtyard sort of size as well and you’re renting out those two separately so what this means is that you’re able to get the high quality piece of land in the metro market but you’re able to increase your rental yield on that property so we’re seeing people purchase properties for around the $400,000 mark renting the home itself for around $400 per week or about a 5% rental yield and then building a granny flat out the back for about $120,000 and then renting that for somewhere around a $300 per week mark so this means in total you’re investing
about $520,000 give or take depending on how much the property costs it could be a bit more could be a bit less same with the granny flat so around 520,000 and getting around $700 per week could be a little bit more could be a little bit less around at 7% rental yield and with interest rates who below at the moment around 3% that’s going to be positive cash flow and pay for itself so the strategy is that you purchase these you purchase one of those so you’re building effectively getting two incomes julian come on those properties you duplicate that twice that’s the two properties and then you go ahead and work with paying off those properties over time or letting the properties pay themselves off and letting the tenants pay off the mortgage and the idea and what makes us so powerful is a it’s really simple because you’re just buying regular houses and then you’re building a granny flat out the back which you can only do in some councils so you do need to be careful where you purchase but building a granny flat can actually be a pretty simple and quick process and doesn’t take too long to build and actually renting really well as well so it’s quite simple because you’re just buying houses on good blocks of land most people can understand that sort of strategy buying and building the granny flats and then paying for themselves and paying themselves off and over time they will eventually pay themselves off completely and when they paid themselves off completely instead of putting the money towards the mortgage and paying down the mortgage of the property that money now goes into your pocket and that’s where the financial freedom element comes into it so you’re purchasing the properties and you can generally do that in a really short period of time a lot of the clients are pumped on property or buying two properties really quickly within like a two year period building the granny flats on them and then they’ve got this foundation of financial freedom they’re not financially free yet but those properties are going on to pay themselves off and as long as we don’t have some catastrophe they’ll eventually pay themselves off those investors will own their properties outright and be able to live off the income for those properties so what’s really cool about this strategy is i it’s really simple for everyone to understand but be it’s also quite quickly to implement so while you’re not getting financially free in a couple of years you can build up your financial foundation for your financial freedom in just a couple of years so you’ve spent a couple of years working hard saving deposits researching the market actively investing in property actively building granny flats so you spent a couple of years doing that but once that’s done those properties kind of just tick away and do their thing and you get to focus on your life so it’s a powerful strategy because it’s simple but it’s also powerful because you can implement it now and you can take direct actions now that are going to deliver you financial freedom in the future and it’s not a strategy where you need to be actively doing this for 1015 2025 years in order to get to that financial freedom one day it’s also not something that when you purchase an investment properties you now tied to your job it’s a massive financial strain because these properties are negatively geared and you have to pay for them because they’re positive cash flow they’re paying for themselves and if something like a pandemic happens again or recession and you lose your job well you could potentially just divert the cash flow from those properties instead of paying off the mortgage maybe you can just pay the interest and you could actually use that to support your life in the short term or a portion of your life in the short term so they can actually support
you if things go wrong or if you lose your job you know you’re not forced to sell them because they’re costing you money they’re covering themselves and so it’s a really powerful strategy in that aspect because it removes a lot of the risks that comes with your own life and your own income because the property is not reliant on you it’s not reliant on your income if you lose your job it doesn’t affect your portfolio and it doesn’t force you to sell your portfolio because you can’t continue to pay the mortgage anymore so you’re forced to sell it you’re not put in that position so it can lower risk in that aspect because you’ve got the cash flow coming in can also lower the risks maintaining the cash flow because is the front house is empty for a while you might have the granny flat rented and then you still got some income coming in not as much as you would like but you got some income coming in to pay the bills or if the granny flat the tiny home out the back is empty forgot the front property or both are rented then you know that’s great and if you’ve gotten this across multiple properties for incomes or adu for properties to financial freedom eight incomes if one is on rented at one point it’s not a big deal because you got seven incomes still coming in so that’s a really powerful and a really simple strategy that a lot of people can understand and a lot of people can implement and it gives you a clear path to financial freedom it might not be the fanciest strategy it might not be the way to make $100,000 in 12 months because it doesn’t really rely on capital growth to be honest it relies on the cash flow to pay off the mortgage and own that property outright and so ideally you want it to go up in value because that’s great but you also want the rental income to go up in value because that’s what’s going to give you financial freedom that’s what’s going to pay off your mortgage the growth in equity the growth in value of that property can help you leverage into more properties or if you need to sell it you can make a profit in the future to pay down debt or do what you want with it but that’s not the primary focus you’re not relying on capital gains growth and so again it can be such a powerful strategy because when you go through turbulent times like we are right now where it’s unclear is the market going to be steady is it going to go down a little bit is it going to go down a lot is it going to go up a little bit is it going to go up a lot i don’t know you can actually weather those storms and the ups and downs of the property market don’t affect you as much because you don’t need the capital growth the cash flow is paying off the mortgage eventually you’ll own it outright that is the goal of the strategy is to eventually own it outright and so the market goes down a bit but you’re still in a positive cash flow situation you’re still paying for all of your interest on your mortgage you’re still paying your mortgage off isn’t that big of a deal are you putting a stressful situation or can you actually wait a couple of years until the market recovers and you’ll be fine and in 15 years time is the market likely going to be higher than it is today yeah probably so it doesn’t rely on capital growth which is part of what can make this strategy so powerful as well so there’s something to think about something really simple we call it the two properties to financial freedom strategy because you purchase two properties build two granny flats eventually over time they’ll pay themselves off or you can work hard to pay themselves off and it’ll deliver you financial freedom delivers a baseline level of financial freedom you’re not going to be extremely wealthy off two properties so you might want to push it to three you might want to push it to four or you might be a single person who lives in a camper van and maybe one property is all you need so you can adjust it as you go you also might want to invest in those properties all upfront in the first two years build up your entire portfolio or maybe you want to do it strategically over time buy one property this year maybe one next year maybe you’ll wait five years until you do the next one because your risk profile so it can flex and change and adjust based on who you are or pantone probably works with a lot of clients who are in like incredible financial positions even through this recession obviously there’s a lot of people out there who still have great paying jobs who have a lot of savings and they’re in incredible positions and they can take advantage of a market like this which is a buyers market and maybe they’ll go out there and now pick up four or five properties in the next 12 to 24 months and then in the next 12 months after that build five granny flats and in a three year period they’ve got 10 incomes coming in and they’re paying themselves off and they’ve got their future set up their retirement set up because they don’t actually need that money they’re loving their job they’re working hard but eventually there’ll be paid off and they’ll own them outright and so it’s such a simple strategy and it’s not a get rich quick strategy because you’re not going to be financially free in two years this is a strategy to attack insurance plan it sets you
up for your future it’s not a plan for the get rich quick scheme is out there and the people that want to make a quick buck if you want to do that then maybe developmental renovation or subdivision is for you and you can make more money in that in a shorter period of time sometimes but it also carries a longer a larger amount of risk as well but a strategy like this can be simple it can be fairly low risk and you just apply regular property investment fundamentals to it make sure you time the market make sure you research the suburbs make sure you invest in a good suburb make sure you invest in a good property in a good street in a good area of that suburb make sure you’re investing in a suburb that’s likely to grow and be in demand in the future avoiding high risk areas like mining towns maybe you want to avoid main roads as well that might not grow as well in the future all of these simple property fundamentals you layer on top of this strategy to lower your risk even further increase your chances of return and this is like the tortoise and the hare this is the tortoise strategy this is like slow and steady wins the race you know that saying a journey of 1000 miles begins with a single step it’s like this you can see the strategy you can map it out okay two properties to two properties to granny flats pay it off financial freedom maybe it’s three maybe it’s four maybe it’s five but the strategy is laid out for you buy a property build a granny flat buy a property build a granny flat or maybe you want to mix it up and buy two properties first because you’re in a good financial position and then go back and build a granny flat slide up but you can really map out this strategy and a step by step linear process of what you need to follow and so then your path becomes so clear as to what you need to do and that’s where the next steps comes in and what you need to do next just becomes so clear because you know okay i need to purchase two properties build two granny flats i currently own none my next step is to purchase one property and maybe there’s a few next steps before you get to that point of paying off debt or budgeting or saving a deposit or researching your market looking at properties negotiating to buy the property okay there’s all those little steps in there but it’s just clear to you what you need to do and then when someone comes up on instagram or on tik tok or on facebook and they’re like we’ve got this amazing strategy this amazing property night we’re going to sell you a new build off the plan unit that’s going to guarantee you capital growth and get your rental returns and blah blah blah blah blah some dodgy strategy out there you can look at it you can say i’ve got i’ve got my strategy i know my path is this training that this person’s offering going to help me along my path my strategic path that’s going to get me to where i want to be is this training going to help me with that if the answer is yes then by all means go for it and then if they try and sell you something at the free information night you know you can be a skeptic and you can say okay is this training going to actually help me towards my goals and the strategy that i have for myself or is just trying to sell me something and so you can be more focused on that or maybe you do want to hire a buyer’s agent i do work closely with pumped on property who are a buyer’s agent they do charge for their services they do help people to implement this strategy in brisbane to find properties in good markets to go ahead and help them source a granny flat builder and go through the building process for them coach them through all of that and they charge for that service and that’s something that a lot of people get help with and need help with you might need that help you might not need that help that’s up to you to decide what you want to do but having that clear strategy that’s why this is so powerful it’s so simple it can be flexible to adjust you it can be implemented in a short period of time so you can actually put a time stamp on it to say i want to build up my foundational properties in two years time and you can work your ass off to achieve that and then in two years when you achieve it we’ve seen people completely change their lives clients who have purchased their properties build their granny flats they’ve got their foundation set up for financial freedom but they’ve been working in a high stress job high paying but high stress for a number of years and they’re just over it and they want a lifestyle change so they’ve relocated to a new city or relocated to crazier area and they pursued a different career and they’re taking a step back to explore themselves because they know they’ll be financially free in the future
they don’t need the high paying job right now they just need to be able to pay their bills and put food on the table so while financial freedom may be down the track it’s not get rich quick you actually change your life quite quickly through this strategy because it opens up all these doors of choices that you can make in your life so that’s a really exciting thing about this strategy as well so yeah i hope that this has kind of opened your mind to a simple property investment strategy that just seems to work it’s working for so many clients right now so many people are implementing this with great success and they’re loving it they’re loving the process they’re loving the journey they’re setting themselves up they’re feeling great about it and they know where they’re going and what their long term plan is and how they’re going to achieve financial freedom and then they can just think about okay what do i want to do with my life or how am i going to pay off my properties faster in fact i got an email this morning from someone saying i’m there i purchased the two properties now my focus is just how am i going to pay them off faster and so it’s really cool to see people implementing this it’s really cool to see this changing lives and i hope that this idea could potentially change your life as well if you want to learn more about this idea there’s a few different resources you can check out you can go ahead and go to onproperty com au forward slash to properties and there’s a downloadable pdf that kind of outlines the strategy in more detail there so you can go ahead and check that out or you can check out the video two properties to financial freedom which i did a couple of years ago with ben everingham where we talked through this strategy in detail probably the best video i’ve ever made so i’ll link up to that down below or you can go to onproperty.com.au forward slash i think it’s 512 episode 512 or i might be 509 i can’t remember off the top of my head i should have checked that before i recorded but you can go through that video or just search to properties to financial freedom in youtube and it should come up as the first video that and you can see me and ben talk about it or the other resources you can actually get on the phone to someone and talk about your situation where you’re at and how How this strategy could work for you. So if you go to onproperty.com.au, forward slash strategy, you can learn more about that free strategy session. And there’s actually a calendar over there where you can put in a time that suits you, and get on the phone with someone schedule a phone call, get on the phone with them talk about, okay, here’s where I’m at, here’s my situation, here’s my vision or where I want to be, does this strategy work for me? How can I implement this? And what am i next step, so someone can actually talk you through that help you get a clear strategy. And then you can go and implement that yourself. Or if you want, you can decide to hire Pumped on Property as a buyer’s agent, and get their help in finding these properties for you. But that strategy sessions free of charge and what you do after that, it’s completely up to you. Some people need the help, and it’s really valuable to them. Some people don’t want to do it by themselves, and either way is absolutely cool. So again, go to onproperty. com, forward slash strategy to check that out. And I’ll go ahead and I’ll link up to the two properties to financial freedom strategy video, where we talk through this in more detail. But this is a really simple strategy can work with so many people, and I’m really excited to see what you do with this in your life. I wish you the absolute best out there. And until next time, stay positive