Wealth Coffee Chats

Good morning, everybody. Morning, morning, Jason here. Welcome to another coffee and a chat this morning. I thought, my office, my studio was all set up tonight. I dunno if you can see it here, I've got my mentoring on tonight where we sit down with our team from Positive Mentoring Program. That's my studio behind you. All around, anyway I'll give you a bit of a tour. Morning Ellison. There's everything set up for this evening. If you can see it anyway, it's not a very good tour. Oh, the cameras, lights, action for this evening. But great to see everyone jumping on this morning. Good morning. Marvelous Monday it is. I thought we'd go outside this morning anyway, because my studio is all set up for something else. So we'll sort of pop out. So it's a beautiful day anyway, but for those who are joining for the first time, Jason Whitton's my name. Property investing 20 years, coaching property investors over 18 with my business partner, Sam Saggers, my life partner, Shay Whitton. We've been running Positive Real Estate for that period of time. There's my office up there, actually. If you guys can see, I've got a little office, which is pretty sweet. I live on an acre, not far from the house. So I get to go to the office every day, work from home, but I still get to work from an office. It's kind of nice. So then anyway, I love it. So I thought we'd go outside this morning because absolutely gorgeous outside today. But welcome along for those who are joining me for the first time and those who are coming back, fabulous to see you again. Each morning, get together with everybody. Just talk about property investing. Being like I said, been property investing over 20 years myself and share a little bit of wisdom each morning over a coffee and a chat. So great to see everyone here, a few chats coming through, which is awesome. So give us a shout out if you've got any questions, but this morning I was going to talk about what's it going to take to buy that next property? Because we're all building our property portfolio and often getting started is actually fairly straightforward. You know, you've already got some resources in play. You've already got some income in play. You've already got some deposits or some equity or some cash that you can use, but once they're used, once they're invested, once you've got your deposits, your initial deposits, let's say it's 100, you know, 150 grand. Thanks Carolyn. Let's say your income is, you know, maximized for the servicing. Well, what next for you? What next? And that's what I thought we'd talk about this morning. Two parts to this process that we need to understand about what's it going to take to buy the next property? Number one, actually the easiest one, is where you're going to get the next deposit from? Okay? Unless you've been strewing cash under the mattress for ever and a day, you know, your deposit is going to come most times from two places, okay? Number one, the equity growth in the properties that you already have. Your properties growing in value over and above a certain loan to value ratio. Grow in value and they create the next deposits for you, your own home, your investment properties, or multiple investment properties. Where is that deposit coming from? Now, the challenge sometimes is that growth is a bit slow. Sometimes you need to boost it with your own saving or cash put towards the next deposit. Now this is the tough part. This is the disciplined part of property investing, you need to be disciplined enough to get enough deposits going in a market place so you don't have to save cash anymore, okay? And in my experience, usually two to three deposits in the market working usually then become self-fulfilling, self-rolling, self-replenishing going forward, okay? Two to three deposits. On average, a $500,000 property right now will take you at a 90% loan to value ratio. Approximately 75 to $80,000 to purchase that property depending on the state that you live in, depending on the state that you live in, depending on their statutory expenses and costs, okay? So the stamp duty and so on. So that's why it's like 75 to $80,000, depending on where you're buying, what you're buying, and how you're buying it. If you're buying an owner-occupier, it's a little bit less, if you're buying an investment property, it's a little bit more, okay? So two to three properties, two to three investment deposits would be 150 to $225,000, okay? So that we need that amount of money in the marketplace. You're saying, "well gee, Jason, I don't have that." Well start where you are, okay? So the deposits are created by two mechanisms, one: capital growth from the properties that you already have, and releasing the equity from those properties and two: you saving more deposits, like Alison saying, here, "saving after-tax dollars is a marathon." Now there's a little twist in this, which is something important to understand, when you buy investment properties, if you buy newer properties that give you tax deductions, you get to save your money. You get to create saving for future deposits, from pre-tax cashflow, from dollars before you pay tax, which is good because you get depreciation, okay? So deposits, some people use deposits or create deposits by joint venturing with others, okay? Joint venturing with others, with friends and family or business partners, not my favorite one, but some people do that. One way to create deposits also is to borrow money from family. I quite like that one, especially moms and dads lending money too, when they've got lots of equity and they lend money to their kids, that gives their kids a real good boost because often, younger people have got good incomes, older people do not, joint venture up that way or lending some money that way can be beneficial for everyone at the same time. Where are you going to get your deposit from? Number one, that is the thing you've got to focus on. Where are my deposits coming from? Now into the future, if we're able to borrow up to 95%, then we might need less money to get into properties and that's going to be excellent for us as investors also. Now let's get to the next one, next part of this conversation, which is the tougher one, all right? Like saving's pretty tough. Like Alison said, that you know, most of us haven't got a gazillion dollars hidden under the mattress, use your extra cash flow, Use your tax benefits, tighten the belt a little bit on things that you don't need to have right now, that you can buy your properties with. One of my clients, Justin, he sold his car and his motorbike and saved his butt off for his first deposit, okay? He didn't need a car, he didn't need the motorbike. He sold them, got the money, bought a property, consequently, he's made a hundred thousand dollars in equity and now he's going on and he's getting set up for his next property. Now he did the next thing, which we talked about for a little while as well. So often we get to the point where we might have equity, we might have deposits, we're ready to roll, but servicing, the ability to service the loan, holds us back. And we're like, well, what are we going to do about this? And this is the tough talk gang, that maybe some of us need to have. If you want to build that property portfolio, you have to increase your income. End of story. End of story. "Oh, what do you mean by that, Jason?" Well, sometimes all of us are sitting in jobs that number one, let's talk about this, number one, you're sitting in a job you don't like, it's easy, it's not that hard, but it doesn't earn you that much money, okay? You know, it's not a career, you don't really care about the job. It's not something that you love doing. Well here's my conversation with you gang, come in bit closer, 'cause this is for real. It's time to get your arse into gear and get a decent job that pays you decent money, more money than you're making right now, and go and find somewhere that you'd like to be instead of just coasting life in a comfort zone, all right? You need to get out of your comfort zone, income comfort zone, and you need to get into a zone where you're earning decent money, all right? Now, just because you finish high school or university doesn't mean you stop learning. There are people in your industry earning more than you. Double, triple, I know there's every single industry in the whole of Australia where you are right now, I would say 95% certainty, you are earning less than the best people in your industry. Yeah, it's hard for you in the world of the military, Alison, 'cause you've got to sort of stand in line, right, to get there. But look at you, you're starting a degree as well and I love that, okay? You're never stuck. There's no such thing, it's bullshit, gang. It's bullshit. You increase your income, 20, 30, $40,000, right? By getting a promotion, you know, Alison studying after-hours, getting a degree, so she could increase her income. Gang, like now's the time. Now's the time. I'm telling you right now, stop stuffing around in the comfort zone, right? "Oh, you know, I'm a bit scared." Well you know what? It's going to be worse when you're 50 or 60 and you didn't do it when you were younger and even if you are 50 or 60, it's certainly not over when it comes to this stuff. Get your finger out of your butt and get going, all right? Get your thumb out. Because life goes by, the big wheel keeps on turning, whether you're in there or not. And I'm telling you right now, those who get up each day and go, "yep, I'm going to fix this. I'm going to go for it." Get up an hour each day, show up to work an hour early, every single day for the rest of the year. Go and do that. Go do one more hour, get noticed by the boss, ask for the pay rise, push for the pay rise. Go for it, all right? Study after hours, do one hour every day of study, like Allison's doing, right? Look for that extra job. Look for the look for those employers who are paying 50 grand more for that person for your role somewhere else and go and ask why, okay? Because gang, there is more money in the marketplace than ever before. Like, there's zero return for cash. Businesses, industries are looking for the best people who want to get up and go for it every day. And you guys who want to be property investors, you're not slackers, right? Like you guys are going for it, you're pushing for it. You know, many of you guys are in the top 1% of Australians who own real estate. It's not like you've never pushed yourself before, but this one's the important one. You have to increase your income. The faster you increase your income, the better off you're going to be for borrowing, the quicker you get your acquisitions done, like the purchasing done, right, the quicker more properties you get to purchase, the better your wealth becomes into the future, which is important. So and Melinda's into it as well. Good work, Melinda! Well done. Right? Gang, don't miss this one. Your deposits are important. You can only save so much. You can only reduce your expenses so much. Your income, by and large, is expediential, you can earn any amount of income into the future if you choose. Up-skill, increase your capacity, get you degree after hours. Wow, man, like you can literally study now online with a degree and you can get it without ever having to attend a university. Oh, a physical one anyway, all right? That's amazing! I love that stuff. Taif, uni, online courses, up-skill, it is never been easier to connect with the ability to increase your income. Up-skill, push for the promotion and if the promotion doesn't come, find somewhere else that will pay you better, more money. And like I said before, my client, Justin, he was working in the Gold Coast and then he got himself a job in the mines in Western Australia and now we're getting set for his next property, all right? So there you go. Hopefully today's conversation landed. You need deposits. Where are your deposits coming from? You need two to three deposits in the market working for you. So you can rotate those deposits at least two or three times over the next 5 to 10 years, that will replenish and land for your deposits and income. Don't sit around complaining that your servicing is no good, all right? Don't come and complain to me or your coaches, right? Because I can tell you right now that is 100% your gig to fix. And if you're sitting there and you know that you could get better income, more income, you could be pushing yourself, you could be getting a degree, you could be earning more, then you need to do it. Get on with it gang. Time to crack on with this stuff because the world's not going to wait. The big wheel will keep on turning. And in 5, 10, 15 years, you'll wish you went back and did one our each day. Imagine that, one hour. One hour, every day, get up one hour earlier, put in one hour extra. When? Every day for the next year, two years, five years, the compounding effect of that, where would that put you? Where would that put you, gang? You know, I chatted to Tim Forester the other day. I don't know if anyone knows Tim Forester, he's worth about half a billion dollars and nice work, Brendan! And he said, well, you know, "I'll get up every day. And I work hard and long all day, because I love it, love it!" He said the money's, you know, and sure he's got plenty of coins, right? But at the end of the day gang, you know, go and find something you love to do or love what you're doing. Love what you're doing. Shay just put it in there, you know, there was one of our clients in Tasmania. She went and got extra work driving a bus. Driving a bus. Driving a bus. Had a great time chatting with people. I've got clients who drive Uber. Uber for a couple of hours on the weekends to make extra coin, to get that extra property. Gang, there's always something you can do. Right now, in this world, it's never been easier to get access to good education, good information, good opportunities. So hopefully my conversation landed today. A bit of encouragement. Crack on gang! 'Cause the world's not going to wait. And I'm so pumped about the next decade of property investing because interest rates are the lowest ever been. Ever, ever been. Servicing is tough. It's going to get better, but you need to increase the income and away you go. So Julie said, "I'm not sure about understanding the three deposits." Julie, what I'm saying is the first two to three properties that you have will require some capital, some investment. On average, depending on who you are, that'll be a 10% deposit plus 5% for your costs, okay? So that's about 75 to $80,000. Those three deposits in three different properties, once they're in that property, we want those properties to grow in value and return those deposits to us so we can go again, okay? So it's called recycling of the deposit. Hopefully that makes sense, Julie. If you need a bit more info, reach out to your coach. If you don't ha

Oh. Good morning. Hopefully the audio is working. Well, I, get this gang. Well, morning gang? People just jumping on Good morning. Good morning. Jason here. A few of the team jumping on right now. So while everyone's just jumping on for the morning coffee and a chat, quick intro, Jason is my name. In property investing 20 years, coaching property investors across Australia and New Zealand over 18. And each morning. Morning Karen. Get together with whoever's available. Quick morning, live coffee, and a chat. Morning Alison. Just to talk through property investing and you know, the ideas of going the distance. Morning Julian good to see you. There's my brother, hi bro. So I get this question all the time. And today I wanna talk about the idea that there's a miss understanding or a misconception that being a property investor means that for the rest of your life, you decide you're gonna be a property investor for the rest of your life you're skimping and you're living on red beans and rice and you know, you'd never get to have any fun. And then, morning Philippa. You have to wait to have all the fun and all the good things like for 20 or 30 years. You have to go without now, go without now to have something later. And the reality is that's not true. That is, there could be anything further from the truth. And it just depends on what you're trying to achieve. I call it, I say red beans and rice because my wife and I, many years ago when we were basically living from paycheck to paycheck. Well, before I took money seriously, well, before I read a book called, "Rich Dad Poor Dad." And if anyone's never read that book, you should go read it. It inspired me. So, we were living budgeting a buffer. Absolutely Alison. We were living paycheck to paycheck and when we'd literally we'd run out of money for the week and we'd have a day or two left before we got paid. we'd have a tin of red beans and some rice, and you'd put a bit of a, coriander in with it. And that's what you'd have for literally a day. Breakfast lunch, and dinner. When you run out of money. But you know, we're a long way, a long, long way from those days. But I remember those days. And some people believe and think that... Hi Karen, how are you? You guys are traveling in the car also, make sure you don't crash. Some people believe that a property investing is about going without and I'm not gonna have any money. I'm not gonna have any fun. That's always going to be stressful and stuff like this. And the answer is no that doesn't have to be the case at all. Now, certainly I've seen property investors take on properties that are highly negative cashflow, not structured well, old properties that require maintenance, properties that require high touch. You know, you might take on a high cash cashflow property. You might take out a multi-room property. You think, Oh, it's gonna be better cause it's high cashflow and there's more problems. There's more challenges. And you know, for me as a property investor a long-term buy and hold property investor. There's a little bit of a sweet spot when it comes to owning the properties. And so for me, we wanna make sure and hopefully for you too, I don't wanna be being called all the time. I don't want maintenance. I don't want my agents calling me every five minutes. Okay. So for me, newer properties work in that sort of space. So, but it, how does it work? Here's what I sort of say to everyone. In the beginning in the, maybe let's say first one to five years, it is a bit of a focus on getting your deposits ready, getting your ability to purchase the acquisition strategy going. Okay? The acquisition strategy going. And it's a choice, it's a choice from you. It's a choice for you to take the resources any spare resources that you have which are spare cash over and above your buffer. And let's just quickly talk about buffer. As we think about, how we do this. Alison mentioned it before buffers, in my world I can, I coach my clients to make sure they have a minimum of $5,000 per property in their buffer for liquidity and safety reasons. So if you've got four properties that you need $20,000 for your property buffer sitting over there. And that's always just sitting there you don't go below that. And for me that gives you a bit of comfort factor for your properties to take care of themselves as we go along. Now, you should have a buffer in your personal life as well. I always say, you should have at least four months worth of personal cash buffer or sitting in your offset account for your personal world. So if your expenses for the month cost $3,000 times that by four, that's another $12,000 in liquid cash always. So I teach this concept called the zero line. Your zero line should not be, oh, I've got no money in the bank and don't worry. I'm gonna be safe cause I've got a credit card. That's an insane zero line. That is the wrong zero line. Your zero line should be as a property investor certainly, or anyone who's managing their and money. My minimum liquid cash balance sitting my offset account, or if you are listening in and you don't understand offset accounts you've got your money in a savings account which is actually called the losings account. All right, put it in the offset account. So the money in the offset account is $12,000. And the moment your balance drops below $12,000 that's below zero. You go into overdrive. You start saving, you're shopping, your shit up. You know, you stop spending, you get sorted. That's exactly what you have to happen, right? And your property buffers, five grand you've got four properties. You've got $20,000 in buffer in there. When it's below $20,000 then you make sure you get 20 grand back into your buffer. And buffer can be, gang, buffer can be redrawn equity from your properties. So let's have a look at that. But let's say you've got your two buffers organized and you've got some deposits working with your acquisition strategy. First one to five years sometimes is the most powerful time where we can get out acquisition done and it's powerful long-term okay. Powerful long-term. However does that mean that we have to live on red beans and rice forever and a day? The answer is no. When can we use some of the money? When can we use some of the resources to have some fun, with our property investment portfolio? You don't have to wait 20 years. You don't. Okay. So my advice or my encouragement is this, first thing's first. We've got to get our acquisition strategy going. We've got to get our momentum going. At least two deposits into properties that you're looking to cycle two to three deposits. Now that's gonna be anywhere from a 100 to a $150 of equity or cash in your properties as your deposits. And what we want those deposits to be doing is recycling and coming back out of those properties in let's say, two to five years and then going again. So you're not having to always save and scrimp for the next deposit. So once you've got a couple of deposits, two to three deposits in, then you can let them recycle and roll forward. You've got your personal buffer set aside. You've got your property buffer set aside, and any money above those amounts we can have fun with. So let's have a look at this. Let's say every year you're getting back 10, 15, $20,000 in tax money back. Now you can be putting that straight into your offset account. You can be making another extra payment on your mortgage if you want to. Morning James. Or what I do is I say anywhere between two and 5%, do the mathematics. Two and 5%, of your surplus tax money or your cashflow money out of your property portfolio for the year can be used towards fun. Sometimes you can get up to 10% if you want to of your net equity and your net cashflow back in your pocket. But usually, very usually between five and $10,000 a year. Once you've got three or four properties going, and if you're on a combined income between a couple anywhere from a 100 to $150,000, you're gonna get 15, $20,000 back in tax. You're gonna get some extra positive cashflow. You're gonna get a little bit of equity growth in your properties. And there is no problem. Zero problem at all, taking five or $10,000 a month. Hi Jeff, how are you, Mike? It is beautiful day in the Gold Coast. There is no problems at all taking five or $10,000 a year and having fun with it. Buying some toys, going on a holiday, fixing up the house at home, doing something special for yourself, whatever it is. And, hear me when I say this fun, gang. That money has to come from renewable sources. It's like renewable energy, right? The sun comes up every day. Don't miss the little secret in this. Don't spend your income money that you exchanged your time for. Your life for, okay. You go to work, you exchange your life. You exchange your time and you get some money. Nothing wrong with that. Okay. But don't then go and spend that money on things that de-value. Because once it goes there, it's not replenishable. It doesn't replenish. Instead of spending it directly once you earn it, you then take the money and put it into an asset. A property, shares, I don't mind. Put it into an asset. And that asset now earns, creates money and wealth. It creates capital growth. It creates tax deductions. It creates cashflow and the renewable, the renewable cash return from the asset, you can then go and spend and have fun with. Don't spend the non-renewable earnings which is your energy and your life for the money. It has to go one step further to an asset that asset earns cash, growth and tax deductions, gives it back to you and then you can go have fun with it. Everyone following along? Give me a thumbs up on the chat if you get what I mean, gang. All right. Don't spend your money directly from earning it. Give me a thumbs up or a love heart or something if you're following along, understanding what I mean. You can spend money that is created from your assets. Aah. Sweet ass. You can spend money created from your assets, because it's renewable, it's replenishable. It just keeps going. The, rent keeps going. The tax keeps going. The tax returns keep going. Long-term the capital growth keeps going. Do not consume non-renewable assets. which is your time and your effort. Put it into our investments as you go along. Well, hopefully everybody got the hang of that today, it was question... Hi Henry. There he is. All the way from Emerald in Rio. Hi Emerald. Hopefully that was a cool one today. A bit of a chat, a bit of a coffee and a chat. Hi Marie. Great to hear from you. a thumbs up. Yeah. Facebook's changed a few things on their apps and yeah, thanks. I couldn't see the chats the other day, but hey, listen gang. Hopefully that was a good one today. Join me again tomorrow for another coffee and a chat right about the same time and hi, listen. Anyone listening in. If you're interested in finding out a little bit more about what we do at positive coaching and mentoring and so on, tonight, we've got a bunch of Webinars on from my coaches all around Australia. There's four or five Webinars on tonight. If you wanna track one of those down and have a listen in, to listen to the strategy, the highest strategy that we do with coaching property investors across Australia and New Zealand, track us down in Facebook, under events or on our Website. Love to see you there. Love to help you out if you need some help. And if not, keep being awesome, keeping being amazing and keep joining me for a morning coffee and a chat and track down my podcasts. I actually chatted to a guy last week, Tim Forester. who's worth close to a billion dollars. Close to a billion dollars. Come on gang listen to that podcast. What is a billionaire, almost a billionaire say about wealth. The true meaning of wealth. It's a pretty cool one. So track us down, track us down on iTunes or anywhere else. You know, you can listen to those podcasts. Hope you get a bit out of it 'cause I certainly did chatting to, almost a billionaire and finding out about his attitude towards investing and a true meaning of wealth. You might be quite interested to hear that one. Anyway gang. You're awesome. Keep being awesome. Thanks for joining me and see you tomorrow. Right about the same time for another coffee and a chat.

Good morning, good morning. Morning, everybody, Jason here. Hopefully everyone's well, on this fine Thursday. Hey listen, Josh Frydenberg. It was Frydenberg, anyway, somebody important, came out and said, yup. Yup, we acknowledge that interest rates Interest rates will be low and you know, not rise for many, many, many years. Something that's pretty cool, as a property investor is having a low interest rate because your cashflow as a property investor becomes more reliable. Hey Warren, how are you mate? Morning Trina, low interest rates, more reliable cashflow, the safer you are as a property investor. When you invest, if you can, mourning Danielle, if you can understand, you know, your future costs because in, you know, the big risk about owning anything, owning, morning Naraj, owning asset is, you know, is there a risk in my future? And what risk is that? No, really the risk for most property investors is the one that we don't really control is, you know, will banks and other people put interest rates up and down. morning Justin, I look forward to catching up to you too, bro. So interest rates are not gonna go up. I'm gonna call minimum five years minimum, but a bit longer interest rates are gonna stay low, Australian bonds and American bonds at all time lows, interest rates are at all time lows, bond yields are all time lows, what is that mean to us, morning Nicole, morning Canal, what does that mean to us as property investors? But you know, not only property investors were putting, we're taking our money, we're putting it into the market and you know, what can we take from that? Well, listen, one thing that I do know, and I think my, my wonderful friend, Andy here, we, we sit and do one of wisdoms on a Friday. I think he's on this morning. You know, we talk about, well, you know, money has to find a place to go to work guys, like, you know, you think about this right now. There's trillions and trillions of dollars that were invested in things like cash, cash is a defensive asset. We're invested in things like government bonds, defensive asset, and now literally they are worthless. They are worthless. And let's say you're a medium you're, you know, you're an okay self-funded retiree right now with two or $3 million, 3 million bucks in the bank. And you know, you might be 70, a defensive asset cash. Oh, you know, not getting you much money. So listen guys, there's a silent, there is Silent boom going on. I don't know if Andy could probably mention right now that the Australian stock market is back up at a certain point. You know, went down a long way and then back up to where it was before, and then, you know, there's a lot of carry on malarkey with property right now, I don't know if any of you guys have attended auctions to the corner real estate agent or lined up and tried to buy a house of recent times. People are paying over, over what the asking price is less certainly in the places that we're in right now, in places in Melbourne and in places in Brisbane, there is a solid burn going on, I'm trying to buy and subdivision right now. Always trying to buy it just before covid hit, you know, the vendor, got a stay of execution from the bank that he didn't have to pay his mortgage for a while, and now, now the, the builder's boost he's put his price at 500 grand on me, alright, So he was willing to drop his price, and I was, I felt I had, I'd bought a bargain before COVID and now he's putting his prices up. Interest rates are gonna stay low, the marketplace is solidly riding along with good quality stuff, you know, where are you right now as a property investor? Are you sitting around waiting? I, you know,lot of people talking about are you wait till September, you wait till September, it'll all be pear-shaped then, rubbish. The government is not going to let that happen. they've already extended the $150,000 right off the small businesses, they haven't spent as much money as they budgeted for in the job keeper and job seeker, they've got plenty of, plenty of tricks up their sleeve, they going to soften the landing in every way, shape or form they can. And it's not like the GFC or anything like that, you know, where they said, well, you know, let's just let that play out in this way. There's going to be softening. But right now, what a lot of people aren't really grasping or aren't really thinking about is, is sure unemployment is high 7% at the moment, I think might be on its way to 10%. But guys, you know, flip that question around, flip, there's 90% of people still employed. And a lot of those people who are employed are in, you know, fairly solid jobs, I speak with them every day in our mentoring program, fairly solid businesses, fairly solid incomes and so on. So they're, those ones who had, who haven't had their incomes affected, are out there buying assets smartly with low interest rates, they've got solid jobs, so the banks will lend to them and you know, those who are fearful and unfortunately ignorant of the facts, of the marketplace are selling the assets for some of them, you know, maybe when they should be keeping them. And so morning Steve, you know, for me, low interest rates into the future, what's that gonna look like for you right now, getting a hold of your equity and building your portfolio has never been cheaper, never been less expensive, never been less risky as a property investor, right? The gap, the spread between an interest rate and the yield right now is in a capital city, the biggest I've ever seen in my life, 20 years of paying attention, in capital cities for property investing and the interest rate spread, you can get a 3% loan for an investment property, which is 90% interest only. And you can get a 5% rental yield at 2% positive cashflow spread, depending on whatever your costs are, your overheads, you know, your maintenance and your rights and whatever. Most people are needing a percent of full percent in their pocket and then still getting their tax back after tax more tax back, from a cashflow in a property. So I'm pretty pumped, interest rates are going to stay low. And my question to you guys, is what are you gonna do about it? at first time buyers Wow, Michael, I see you watching this morning again, first time buyers and the builder boost, you know, now I've done the math on those who could borrow at 95% and qualify for the LMI grant from the government they're putting between 15 and $20,000 of cash in their pocket after owning a home. And it's cheaper than their rent, so gang, let's say maybe a little bit woefully this morning, but I was just pontificating about the interest rates. They're gonna stay low, what are you gonna do about it? Because for me as a property investor, the risk has never been less and, you know, buy a good asset right now, locking a low interest rate. You're gonna be nice and solid for three to five years with decent cashflow, decent cashflow, better than what I'm saying in 20 years in my life. Anyway, that's it this morning, I think I've had my coffee or maybe not enough coffee. Hopefully everyone's well and fired up and maybe Donald tomorrow, we'll have another little chat. See what pops up on my radar during the day, but stay well. You know, if you wanna catch up with us, if anyone is watching here, haven't met me before coaching property investors, over 18 years investing in property 20. And listen, if you wanna find out a little bit more about us, we do webinars and coaching and stuff like that. So track us down on our Facebook page and maybe we can catch up some time, alright. Take care. Everyone, have a good morning, thanks Nicole. Thanks everybody, and have a good day. Alright, chat soon, bye, bye.

Good morning, morning all. Jason here. Up for a coffee and a chat this morning. Hopefully everyone's well. A but chilly in my neck of the woods, probably not as cold as down South as it's been for a little while, but anyway, got my Mr Happy on and a nice cup of coffee. It's coming to that time of the year, end of the financial year. And last night I had a good catch up with our property investment crew, our mentoring program. We talked about minimizing taxes. Hey, listen, it's not about how much you make, it's about how much you keep. And as a property investor, we're exposed to significant amount. Morning, Trina. A significant amount of taxes. And if you're smart, if you're smart, you can reduce them significantly. One of the major benefits to owning real estate is a thing called depreciation. So depreciation, for those who own property in their own names, I think most people should own property in their own names because it's very efficient. You can get your taxes down to single digits. So, imagine this. Imagine you're making 100, 150, $200,000. Imagine instead of paying 35, 40, 45 cents in the dollar, imagine paying 5 cents in the dollar for taxes. Would that be all right? What do you reckon about that? And that's the fantastic thing about owning real estate. Now, a lot of people get confused here. You get all these tinpot turkeys carrying on about oh, negative gearing and all this sort of stuff. Those idiots don't know what they're talking about. They don't know their rear from their arse hole. And at the end of the day, if they don't want their tax deductions, then give them to me, I'll have them. At the end of the day, here's the drill. A tax deduction, for you as a property investor, or you who own a property, is a very normal, natural perfectly legitimate thing. Claim the bloody things, you guys. And when you claim your taxes back weekly, fortnightly and monthly, it's called a PAYG variation. You can use that extra cashflow, it's real money in your pocket. Morning, Jase, how are you bud? Catherine, how are you guys? This is a bit of a repeat from last night. You can use that money for saving for deposits, paying off debt, all sorts of stuff. Now, a lot of people don't have spare cash flow because their life is finely tuned. What I always say is you've got wasted cashflow. Wasted cashflow you're giving to the ATO. Cashflow for most people is the money you're putting into super. If you're not taking care of it yourself. Wasting cashflow, in my world, is a principle and interest payment on your home loan in the acquisition stage. Right, in the acquisition stage, why pay your home off if you're trying to buy properties? That's not the point. Morning, Tim. So minimizing your taxes. The point is to keep more of that money, gang. And so what are the big four taxes, the big for taxes? PAYG, your everyday tax that you pay on earnings. Stamp duty. Stamp duty as property investor. Capital gains tax, as a property investor. And also, land tax, as a property investor. Now, for anyone listening in or anyone watching, there's a surefire way of never ever, ever to pay capital gains tax as a property investor. Anyone know what it is? Chuck it in the chat, if you're there . Anyone listening in, if you got a question, chuck it in the chat. Happy to have a bit of a yam this morning. But listen, the number one, surefire way of not to pay any capital gains tax as a property investor is don't bloody sell your properties. Why would you sell them if you bought them? I don't understand that sort of thing, but really, for some of us, we might have it in our strategy. I have coached people about selling and upgrading their properties. But the big four, your income taxes, your PAYG. Land tax. Stamp duty. Capital gains tax, how do we minimize it? Number one, PAYG, when you own a property, you can claim your taxes back, it's called depreciation. You don't have to have a negative cashflow, you don't have to lose cash to claim your taxes. Own brand new property gives you fantastic tax deductions and claim back weekly, fortnightly and monthly, guys. At the end of the day, if you've left money with the ATO, or let's say this, if you owe the ATO money, they're gonna charge you interest. And then, you leave your taxes with ATO all year and then you claim it back at the end of the year and they pay no interest? It's ludicrous, it's insane, all right. If you don't know what I'm talking about, shout out to us, we'll point you to the right direction. Come on to one of our property investment nights. So, PAYG taxes, claim your taxes back weekly, fortnightly, monthly in your pay pack, it's called PAYG variation. Now, how do you minimize stamp duty? Well, stamp duty, the cost of stamp duty is different in each state and anyone listening in last night, we talked about this in our mentoring last night. The lull of stamp duty in the country is in the ICT and you can claim the stamp duty and the ICT as a tax deduction first year. That's crazy, the politicians look after themselves, huh? So, different states have different stamp duty so think about that. The difference can be sort of five to $10,000 in different states. Also, if you purchase a house and land package, if you build a house, you only pay stamp duty on the land, not on the house. So that's another way of significantly saving on stamp duty. In some case, 50, 60% saving on the end value of the property. A brand new property, low stamp duty. I like that, we love building houses, we think they're great. Land tax, how do you minimize land tax? Number one, you buy in different states. Because there's a threshold in your name in each of the states, and if you buy three or four properties in different states, you'll end up with a zero land tax. But if you own them all in one state, you'll end up paying land tax, which is ludicrous, it's a lot of money out of your pocket, longterm. And as your values go up, get this, you buy now and then your values go up, you're like oh, I like Victoria. I live here, I'm gonna all buy in Victoria. Well, then, when you're gonna retire, Victoria is gonna take 20 to $30,000 of land tax out each year. It's dumb, okay. It's not smart, as a property investor, to buy everything in one area. There's many reasons why, the risk is too high. You should, at least, have three different states and at least two types of properties. Houses and apartments, I like. A good mix of both ends. But another way to minimize the land tax is to buy apartments, not houses. The land content is less in the future, often if you buy the right apartment, the rental will be more and the expenses will be less. Mm, yeah. That's popping in the oven there, isn't it? Isn't it property, isn't houses better, Jason? Well, depends what better means to you. Do you want more cashflow when you're retired. Who cares what your property's bloody worth, as long as it's producing cashflow. So, do you want more taxes because you own more land? Or do you want more income because you own better income-producing assets? You answer the question because I know what I like and in my future, I'm gonna have lots of assets with a lot of land content, but high income capability and the values will be still pretty good. So where did we get to? Land tax. We've done stamp duty, we've done PAYG. Capital gains tax, the last one, the big Kahuna. Listen, I don't think you should sell, but if you do sell, there's ways to minimize that obviously. Own a property more than 12 months and then you get a deduction, a 50% deduction of capital gains tax if you do sell. Owning your own home, place of residence, capital gains tax free. It's one of the only reasons I encourage people to own a PPR, Principal Private Residence. If you own , super, okay. In accumulation phase which is when you're not retired, capital gains tax is charged at 10% or tax is charged at 10%. And if in retirement, capital gains tax is zero. That's pretty good. Now there's some good reasons to make sure you've got enough assets in your super, that's for sure. And last, but not least, for business owners. Aren't there any business owners listening in today? If you own a property, if you buy a property for your business that you run your business from and you have owned your business for 15 years or more and you sell that property, you can include that property in the small business, capital gains tax concession, which is two million dollars. So, technically you can sell your property for two million bucks, capital gains tax free. Get that one, business owners, you should have that on your radar every day of the week. A lot of business owners make a mistake and accountants do this as well, where they go and buy the property in the super, for the business, which is great but then, you miss out on the capital gains tax free concession two million bucks external super. All right, so, I've got strategies around that which I think are smarter, but hey, listen. The end of the day, the idea game is to minimize your taxes, be smart about thinking into the future about what am I going to do and what is going to be the expenses, the cost of that, as a property investor, because it's about how much you keep, not about how much you make. Cause if you can keep more than anyone else, if you can be more efficient than anyone else, you're left with a compounding effect of wealth, cashflow, income, value in the future which will set you up very comfortably, very nicely for the life you wanna live. All right, that's about it this morning with chatting about taxes. There's so much more to chat about in that sort of stuff and all of you, I know there's a few of you guys in the mentoring program, so if you didn't come last night, if you didn't come last night, I recorded a whole hour and a half on this last night. Ladies and gents, if you're in the mentoring program, go to the positive mentor portal and you'll the recording from last night. It was a cracker. For those who are in mentoring, you should bloody join. It's fantastic . I'm a bit biased, but there you go. Anyway, thanks for tuning in, gang. Hopefully everyone's well, stay well. Have a great day and, listen, if you wanna catch up or lost track, stay on. Facebook, website, whatever. Come along to one of our events and listen in a little bit more. All right, hopefully everyone's well. Take care, thanks for dialing in, you guys. Hey, Kels, from up in Townsville. Michael, how are you, mate? All right, adios everybody, bye bye.

Good morning. Morning everyone. Morning, morning, Jason here. Hoping everyone had a good weekend. I certainly did, had a nice relaxing one. I hope you did too. Hey listen, today I want to talk about capital gains tax and capital gains tax is one of those taxes or calculations as a property investor that you know is the the big boogeyman. If you ever sell your property, you're always like, " well, how much capital gains tax am I going to pay?" Well, Here is four ways, four ways You can have zero, zero capital gains tax no capital gains tax as a property investor. And I was just thinking on the four of them maybe five. Well, there's one way you can never never pay capital gains tax and that's never sell, never, never, ever sell. But for those of us who are monopolized for those who I've asked who are at a point where we're either sometimes forced to sell or sometimes planning on selling, we need to be smart about that. We need to understand how we can minimize those taxes, maximize the gains for ourselves and our family and our future and our wealth. So yeah, four ways to have capital gains tax at a zero calculation for you as a property owner. Number one, everybody should know this one your home, your owner occupied property, owner occupied property is capital gains tax free. The house that you live in. I do know a fair few people who have an owner occupier upgrade strategy. I really liked the owner occupied upgrade strategy where you buy a nice house, a nice area and whatever, whatever budget you can afford at that point in time. And over the years often it's usually between three and four times you do an owner occupier upgrade from one style of property and area to another style of property in an area. Every six to 10 years is a good timeframe. If you want to be in that owner occupier upgrade, there's no cost to you from a tax point of view. If you buy and sell your owner occupied property. Now, if you do it in under 12 months and do it all the time the ATI will sort of think you, sniff that one out, but three times over 30 years upgrade fantastic capital gains tax free. You go from a property-owning a property in that, where let's say we started out right now. Let's use this as an example. Most people can't afford most people on, maybe a Julian income can afford 500[Inaudible] property. So you buy that at whatever level you're at. You stay there for five to 10 years. You might add some value. You might fix it up, I like people to do that. Once that property goes up in value, you can sell that property, take the profits. Your family might grow, your style might change. And then you upgrade to another property and you do that three times. Okay. So number one, owner occupied property. Number two capital gains tax free property is when you own a property with your super, okay, a self managed super quickly. And There's some tricks and ways to get that right You should talk to a financial planner about owning a property in your super save as appropriate for you. But if you do own a property in your super or any asset in your super, when you put that super fund into retirement phase, there's a accumulation phase. And there's a retirement phase. When it's in a retirement phase, you can sell a property inside a super fund capital gains tax free, zero tax which is pretty sweet. Another thing that's amazing about owning assets in a super fund, I'm a big fan of that. I think everyone as a property investor should build their assets inside and outside of super, in retirement your income that comes from your super so in the retirement phase is tax free as well. So no income tax and no capital gains tax under a threshold at this point of 1.6 million you put a couple together that's $3.2 million worth of assets owned for you. Capital gains tax free, income tax free. Absolutely crazy spot on place to own assets. So that's another place that you can own an asset capital gains tax free If you ever had to sell it. We work with a couple of very smart financial planners who do some very clever things when it comes to buying and selling real estate and beefing up and funding and growing your super at the appropriate time. If anyone ever wants to find out more about that, track us on and come and have a chat. We'll introduce you to the right people that we know who like real estate and are great financial planners. Now, number three, number three, the third place you can have a capital gains tax free property as an investor or a property owner is a little bit of a trick one but this is for all the business owners listening in, all the business owners listening in again, you can own a property that you run your business from, and that property, if you qualify for the small business capital gains tax concession of 2 million, there's a few little qualification questions you have to have been in business for over 15 years and so on. But the property that you own and run your business from can be a capital gains tax free, If it's deemed the asset of the business because you have a $2 million threshold to sell the business and that $2 million is capital gains tax free. Why is it $2 million capital gains tax free for business owners? Well, by large, small to medium business owners that have businesses less valued less than $2 million, You guys, we guys, all of us, a very average if not terrible at contributing to your super when you pay yourself and the government has said well, listen, I know you won't, you don't pay yourself very much into your super if any here have cyl a tax free style asset into the future. If you sell your business, which includes the property the real property that you run your business from, then that can be capital gains tax free up to $2 million bucks. So that's fantastic. So three places, capital gains tax free ownership, your name in a super and a business that owns a property that they run from. What's the fourth one. It's a bit of a trick one, I aside this one all the time, but it is an actual fact, it is for real. If you are a politician, if you're a politician and you have to go to Canberra and whatever, then you can have two, that's right two capita gains Tax-free principal, places of residence. How's that? Alright. The polys they look after themselves, don't they? they all campaign for us to have, get rid of negative gearing and all this rubbish but now they're going to have two capital gains tax free properties for themselves. Yeah. What a bunch of lunatics. Anyway, there you go. That's a trick one. So three real ones. And the fourth one if you want to go to become a politician, but I don't think that that would be one of the ones that are choose to go and do. A couple little tricks in their , not tricks facts. If you move out of your own home and rent it out, you have got six years, gang, six years. If you move out of a printer place of residence, rent it out, go rent somewhere else. For whatever reason you might travel overseas you might, you might move into state for two or three years. For some reason you might just move around the corner for a few years for some reason, and rent capital gains tax free. That property stays capital gains tax free for six years, six years And that, which is awesome. So you can move back in it starts again, or you can sell that property capital gains tax free six years later which is, which is excellent. So keep it on that one. That was an excellent little concept. And the other one is if you do move out of that property, move by and move into another Prince place of residence. There's a two year rollover gap between that one and the other one. So for selling the Prince place residence. So hopefully that'S useful gang, as property investors We want to make sure that we end up keeping the money we create. That's important obviously. And the more you keep the more wealth you create for your future and taxes are one of those things if you structure yourself well, you manage it properly, then you can keep more than others who aren't structuring themselves well. And that often makes all the difference into the future for what tax minimization. Another little, one little bit of a tidbit a Canberra,[Inaudible] just that they would get rid of stamp duty fell under $500,000 properties and which is brilliant for both first home buyers and investors, which is fantastic. There's not that many $500,000 properties around in Canberra, but anyway, there you go okay, is going to stimulate their property market. And also you can get a discount between 500 and, and a $750,000 pretty well a 50% discount on the stamp duty. So that's interesting that popped out. Anyway hopefully it runs well. And if some of those concepts are settling with you and you go, well, I want to find out more track us down. Listen at one of our webinars, you can jump on our Facebook page, send us a message, whatever it is happy to chat to you guys at any time. All right. Hopefully everyone is well thanks for darling in of coffee and a chat. And see you tomorrow about the same time for another coffee and another chat, take care, stay well and buff it out. Cheers gang.

Good morning gang. Good morning, Monday, fresh start to the week. Monday morning, it is a little bit chilly here today, John, if you're listening in maybe not as chilly as Melbourne, but a bit cold, but good morning, everybody. Welcome to the week. A quick question for you today. How many properties do you need, how many properties do you need to retire on or create the passive income that you want as a property investor? How many properties do you need to create that income that's gonna get you what you want some point in the future. I've said this a few times before, morning trainer, you know, and I think I've talked about it last week, the three stages of property investing, acquisitions, the buying, the consolidation, the keeping, the fixing, the maintaining, and then the lifestyle, the transition into, you know, whatever that might be for you. Might be for you from a passive income or cashflow, whatever it might be, how many properties do you need? How do you go about calculating that? It's quite a simple process from a big picture, point of view, you add up the rents, the rent, and then you take a look at how much passive income that you want into the future and, you know, add them together. And that might be three properties, it might be four properties, it might be five properties. The challenge is for most of us, it is debt-free property, debt-free property, morning to your trainer. Debt-free property that you want. So then remember the first stage is acquisition. Okay, if I need five properties to generate $125,000 worth of income, rental income, then that's what I go about doing. I go about acquiring and purchasing those five properties. Now, remembering when we have our investment properties over time, those rents will go up over the next 10, 15 years, those rents will go up. Now, a lot of people think that they will double and by large statistically, the rents will not double. The values often double, the rent do not double. So they go up another 50%, half, okay. Morning Alex, morning Patrick. So by large, the stats show. So if you buy something and it's renting for 500 bucks a week now, in 10 years time, it should be renting for 750 to 800 bucks a week rent. That's usually what the stats show. Now there is an anomaly in this, and this is where we come under a little bit of scrutiny often where I recommend lots of apartments for your cashflow in the future, rather than houses, because houses' rent grow slower than apartments' do closer to the CBD. You can go check these stats out yourself, a property, one to two K from the CBD where there's employment, there's cafes, there's restaurants, those rents have statically grown stronger than houses in the past. Give you an example, in Sydney, we had our clients buy properties in a place called Ropes Crossing $200,000 houses just after the GFC, which were renting for 600 bucks a week. Very strong, very nice. And one bedroom apartment in Sydney, in Redfern, $600,000 apartment, a few years after the GFC. And which one do you reckon today? Rents for $1,200 a week. I've already given you the answer, I've given away the answer, but it's certainly not the house in Ropes Crossing. The house in Ropes Crossing is just worth under a million bucks. The same with apartment we had the value, not so long ago, just under a million bucks as well, but the apartment, one bedroom rent for 1,200 bucks a week compared to the house only rent for 850 at Ropes Crossing. So for me, if you're looking, how many properties do I need in the future? The question becomes which properties, what type of properties? Because houses will have less net cash flow, than apartments, which area, location, infrastructure do you want them in? And so how much debt-free do you want those properties as well? Because here's the drill, right? But most of us, we're not gonna pay them off a hundred percent until very late in life if ever. I'm not, I don't believe that you should pay completely debt reduced the properties a hundred percent. I reckon about a 40-50% LVR is about the right number. Whenever I've done my mathematics and done the analysis on our cashflow tools are 50% LVR and your rent's going up 50%. Boom, there you are. You've got your positive cashflow like there's no tomorrow. So guys just wanted to sort of touch base and would you have to think about that. If you want to work out the cash flows, we've got a little free calculator, free cashflow calculator hit us up, hit me up in the chat below. Say yeah, Jace or something like that. And I'll send you out the, I'll get you the link to the cashflow calculator. How many properties do you need? Add up the rents, go about purchasing those. That's the first stage. Don't worry about debt reduction yet. Don't worry about the positive cashflow of those properties yet. None of that rubbish because you can't confuse the acquisitions, the buying with the owning, okay? Because they're two different behaviors. They're two different economic outcomes at this point in time. And so buy the properties you want, and then later on, we can decide to debt reduce or add value to increase the rent, okay? And this is so you can renovate the rent goes up or you can debt reduce the rent goes down and then the net result becomes your positive cash flow in your pocket as you go. Now, I always say to people, listen, if you've got a good super contribution strategy, if you're smart with your super, if you're contributing to your super then in a good way, okay. Jace, no worries, Peter, if you're contributing to your super over, you know, 30, 40 years of work, and you're smart about what you buy, your super should take care of at least two days of your 2-3 income that you want in your future. And I say your property investments will take care of the other two to three days of your property in cashflow for your retirement in the future. What we do say to people, if they wanna retire early, if they wanna start darling back is I aim to buy back for your own sanity, buy back a Monday or a Friday gang. It's pretty amazing if you have a three day week, a three day weekend, or a four day weekend, how much more energy and interest in life, you have going the distance working an extra, you know, three days a week or whatever it is. But anyway, a few people shout it out for the calculator. So that's no problem I'll get that out to you. Jason and Neil asked, do you report on advice on towns? If so, how much? Jason we have a membership. It's called a lifetime mentoring program mate. We've got coaches all around Australia. Maybe we've got a couple of webinars on this week mate. So if you want to check those out, you can chat to one of the coaches and work out what program might be right for your brother. So may track us down pretty easy to find us on the Facebook page. You'll see events wherever you are, wherever you live. Just jump on one of those, might have a listening to the coach. They'll be able to tell you all about what we get up to, how we coach and help property investors all around Australia and New Zealand. So sweet mate. So again, yeah, how many properties do you need? It's not as many as you think. And for me, you gotta be smart about that. There are a few properties out there that are interesting when it comes to high cashflow and listen, the right one, the right high cash flow property, it'll be fine, but they do carry a bit more risks. So you really got to analyze what that means, you know, now and into the future. And now I'm going, hopefully everyone's well, great to see everyone on this morning and thanks for all your comments. I'll get one of the team to hit you with a link and you can go download the free calculator and hit us up with any questions. If you've got, if you wanna know a little bit more. Alright, gang, take care. Hopefully everyone's well, stay safe and alright until tomorrow, by then chat then. Bye bye.