Group Property Mentoring Program
- 2. Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 3. Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 4. Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 5. Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 6. I’m Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 7. I’m Sick and Tired of Working 9 to 5 with Nothing to Show for It???
- 8. Do You Want To • Retire Early? • Invest In Property? • Not Have To Worry About Money? • Build And Create Wealth?
- 9. Do You Want To • Learn How To Build A Property Portfolio? • Locate And Research Great Deals, Easily? • Minimise Your Risk?
- 10. What About • Create Immediate Equity? • Buy At A Discount? • Locate Positive Cash Flow Deals? • Find Great Renovation Opportunities?
- 11. Agenda • Information evening • Challenge you beliefs • Interactive – I will ask you questions • Share some of my ideas and experiences • Current reality for the majority • Investment concepts • Money and Investing • Why Property • Overview of the Program • Next Steps
- 14. The Traditional Way • Work Hard • Avoid Personal Debt • Spend Frugally • Pay Off Debt ASAP • Spend Less Than You Earn • Treat Savings As A Necessity
- 15. So Why Do • 95% of the population by age 65 either end up dead, dead broke, relying on a government pension or in need of their family to help support them? • Only 4% become financially independent, able to stop work and continue to live a comfortable lifestyle? • A tiny 1% are classified as rich?
- 16. Australian Households are currently spending 2.3% more than is coming into the average household each week in income • AMP.NATSEM Income & Wealth Report Issue 9. November 2004
- 18. Median Annual Savings per Person $300 • AMP.NATSEM Income & Wealth Report Issue 25. April 2010 NATSEM estimates based on HILDA data
- 19. Rich or Poor they all have money problems
- 20. Rich or Poor they all have money problems Its just a case of • Not enough money OR • Too much money
- 21. Rich or Poor they all have money problems Its a case of • Not enough money OR • Too much money Which one do you want?
- 22. More money doesn’t solve your Money Problems
- 24. More money doesn’t solve your Money Problems Financial Intelligence Solves Money Problems
- 25. My mate “Bazza” • Aged 45, has about $80,000 in super, earns around $60,000 and has no investments • Wants to “retire” in 20 years • Remember he is used to living on $45,000 p.a. after tax • At 5% return he is on track for a princely sum of • * “Bazza” is a real person, but “Bazza” isn’t his real name
- 26. My mate “Bazza” • Aged 45, has about $80,000 in super, earns around $60,000 and has no investments • Wants to “retire” in 20 years • Remember he is used to living on $45,000 p.a. after tax • At 5% return he is on track for a princely sum of $235,000 • * “Bazza” is a real person, but “Bazza” isn’t his real name
- 27. Einstein’s Definition of Insanity
- 28. How has the traditional path been working for YOU so far?
- 29. There’s Only 3 Options • Earn More • Spend Less • Invest Better
- 30. “I have clients that want to invest but just don’t know where to start”
- 31. The Average Person Doesn’t Know What To Do!!!!!!
- 32. The Average Person Doesn’t Know What To Do!!!!!! • One Investment Property
- 33. The Average Person Doesn’t Know What To Do!!!!!! • One Investment • 1,206,627 Property
- 34. The Average Person Doesn’t Know What To Do!!!!!! • One Investment • 1,206,627 Property • Two Investment • 456,954 Properties
- 35. The Average Person Doesn’t Know What To Do!!!!!! • One Investment • 1,206,627 Property • Two Investment • 456,954 Properties • Three Investment • 153,595 Properties
- 36. The Average Person Doesn’t Know What To Do!!!!!! • One Investment • 1,206,627 Property • Two Investment • 456,954 Properties • Three Investment • 153,595 Properties • .......... • Six or more Investment Properties
- 37. The Average Person Doesn’t Know What To Do!!!!!! • One Investment • 1,206,627 Property • Two Investment • 456,954 Properties • Three Investment • 153,595 Properties • .......... • Six or more Investment Properties • 15,460
- 38. There’s Many Challenges For Investors
- 39. There’s Many Challenges For Investors
- 40. There’s Many Challenges For Investors Your Friendly Local Real Estate Agents
- 41. There’s Many Challenges For Investors Your Friendly Local Real Estate Agents Bank Manager
- 42. Number of Renters Are Increasing • 1981 • 21% • 1991 • 23% • 2001 • 33% • 2011 (est) • 36%
- 43. Population is expected to increase by 50% by 2050
- 44. So, you want to invest in property The Biggest Challenge – with over 500,000 listed properties across more than 15,000 suburbs throughout Australia : • Where do I start? • How do I find good deals? • What makes a Good Deal? • What do I need to Know? • What is the Process? • I don’t know what I don’t know!!!
- 45. Fast Track Property Program • Provide access to a team of experienced property investors and advisors. • Teach Investing, its a Step by Step process. • Provide the Resources, Tools and Education to give you the confidence to make decisions. • Provide Ongoing Support. • Open you mind to the possibilities. • Its All About YOU!
- 46. NO!! • No ROI’s, PIA’s, LVR’s or DSR’s. • No High Risk, Get Rich Quick Schemes. • No Developers or agents selling their stock. • No DIY Home Study Course. • No telling you what, where or when to buy. • No Agendas. • No Baggage.
- 47. Rule No 1 • Don’t Teach Pigs to Sing
- 48. Rule No 1 • Don’t Teach Pigs to Sing It wastes your time and it annoys the pig
- 49. We can’t teach Someone who doesn’t Want to Learn If you give someone a fish, you feed them for a day, but if you teach them to fish, you feed them for life!
- 50. Why do we want to Invest?
- 51. What is the true measure of Wealth? • It is how many days you can continue to live without the need for work.
- 52. Two Types of Income • Earnt Income • Passive Income
- 53. Two Types of Income • Earnt Income • Passive Income Which one gives you financial freedom??
- 54. 8 Ways to Make Money • Inherit It • Earn It as an Employee • Marry It • Become Self Employed • Win It • Start a Business • Steal It • Invest
- 55. 3 Classes of Investors • Non – Investors (the poor) • Passive Investors (the middle class) • Active Investors (the rich)
- 56. Assets vs. Liabilities • Assets put money in your pocket • Liabilities take money out of your pocket
- 57. Investment Fundamentals • Supply and Demand • Income and Growth • Growth early / Income late
- 58. Value (Growth) is determined by Income
- 59. Which investment would you buy? Price is the same Industry is the same Company 1 = $1 profit per share Company 2 = $2 profit per share
- 60. The only reason you buy an investment is for the income (profit) it generates OR the income (profit) you think it will generate in the future
- 61. The only reason the value of an investment increases is because of the income (profit) it generates OR the income (profit) you think it will generate in the future
- 62. Why not shares/managed funds? Investor Manager/Company • We take 100% of the risk • They Take 0% of the Risk • We Invest 100% of the • They Invest 0% of the Capital Capital • We get 100% of the Losses • They get 0% of the Losses • We get a % of the Profits • They get a % of the Profits
- 63. So why do we like Property? • Cash flow • Control • Leverage • Depreciation • Capital Growth
- 64. rule of
- 65. rule of Divide 72 by the growth % = no. Years for asset to double
- 66. Market 1975 2009 Growth % Sydney $33,000 $546,000 $513,000 8.25% Melbourne $28,000 $448,500 $420,500 8.12% Brisbane $35,000 $428,000 $393,000 8.36% Perth $41,000 $470,000 $429,000 8.41% •Source BIS Shrapnel, ABS •Due to unreliable historical data for Perth and Brisbane, we have used figures from 1980 and calculated over a 29 year period
- 67. There’s lots of ways to make money in Property. How Do You Want To Do It?
- 68. 5 second valuation method
- 69. Information for Information sake Houses Stock Position Capital Growth Rent Rate Sales Affordability Shortage Area Median Value Year Ending Month Ending Last Quarter Year Change See Note 1 See Note 2 Mar 2011 Mar 2011 ACT $537,500 6.02% 0.01% 4.66% -3.76% 50.23% 5000 Adelaide $408,500 1.72% 0.03% 4.28% -1.86% 49.52% 7000 Brisbane $447,500 -2.89% -2.23% 4.49% -14.66% 49.28% 2000 Darwin $508,000 0.97% -1.64% 5.14% -32.55% 44.73% 1000 Hobart $389,000 5.51% 0.42% 4.83% -17.96% 53.93% 4000 Melbourne $600,500 6.73% 1.20% 3.30% 17.67% 69.78% 25000 Perth $485,500 -0.27% -0.41% 4.08% -16.18% 50.53% 7000 Sydney $670,000 4.52% -0.51% 3.97% -13.60% 68.47% 6000 Australia $441,500 2.90% -0.55% 4.37% -7.31% N/A N/A RESIDEX NEWSLETTER, QTR ENDING MARCH 2011
- 70. Best and Worst 3 month Growth by State Markets Within Markets State Suburb Best Suburb Worst Performance Performance last Quarter last Quarter Queensland Blackwater (U) 5.6% Helensvale (H) -6.59% New South Wales Abbotsbury (H) 5.17 Queens Park (H) -4.31% ACT Palmerston (H) 3.56% Gungahlin (U) -1.87 Victoria Romsey (H) 5.67% Casterton (H) -2.96% Tasmania Mowbray (H) 3.17% Sandy Bay (U) -3.1% South Australia Port Augusta (H) 3.93% Mawson Lakes (U) -3.39% Western Australia Wandina (H) 6.27% Kenwick (H) -5.39% Northern Territory Rosebery (H) 4.18% Bakewell (U) -3.99% RESIDEX NEWSLETTER, QTR ENDING MARCH 2011 H=Houses U=Units
- 71. This is the part for the excuses • I just don’t know enough to invest • I’d better to leave it to the experts • I don’t have the time • Investing, it’s just like gambling • Oh, its just to complicated • I’m to young (or old) to worry about that • I don’t have any money to get started
- 72. And then there’s the Fear • Fear of taking a step into the unknown • Fear of losing money • Fear of being ripped off • Fear of making a mistake • Fear of what family and friend will think • Fear of borrowing
- 73. So, how’s that been working for you so far?
- 74. So, who wants to be “Bazza”?
- 75. The reality is that most people spend more time thinking about missed investment opportunities, what they would do if they were rich or how they would spend a lottery win then they do putting together a plan to create wealth. Always hoping to one day strike it rich or find the bargain of the century. But they never actually
- 76. The reality is that most people spend more time thinking about missed investment opportunities, what they would do if they were rich or how they would spend a lottery win then they do putting together a plan to create wealth. Always hoping to one day strike it rich or find the bargain of the century. But they never actually TAKE ACTION
- 77. Remember Einstein’s Definition of Insanity “If Nothing Changes, Nothing Changes”
- 78. What will the Fast Track Program do? • Set some goals and priorities • Discover the benefits of investing using your own super fund • Analyse spending and make some commitments • Access a comprehensive 24/7 “knowledge” centre for all your • Review strategies and costs property questions • You will learn how to locate and • Show you how to save time and research great deals, easily money • Minimise your Risk • Hold you accountable • Teach you to make informed • Provide access to over $6,500 of decisions, quickly resources
- 79. What will the Fast Track Program do? • Learn how to create • Generate quick chunks of immediate equity by equity through renovation finding people who will projects sell their property well below market value • Opportunities through “Off the Plan” purchases • Have your properties pay you week in week out, • The anatomy of a “hot find real positive cash spot” flow deals • How to add big profits • Locate and research with subdivision and great deals, easily strata titling opportunities
- 80. Fast Track Program One on One Fast Track $6,500 + GST (3 day intensive)
- 81. Fast Track Program One on One Fast Track $6,500 + GST (3 day intensive) Group Fast Track $4,500 + GST (12 week program)
- 82. 12 week program starting 15th November One on One Fast Track $6,500 + GST (3 day intensive) Group Fast Track $4,500 + GST (12 week program)
- 83. 12 week program starting 15th November One on One Fast Track $6,500 + GST (3 day intensive) Group Fast Track $4,500 + GST (12 week program)
- 84. 12 week program starting 15th November One on One Fast Track $6,500 + GST (3 day intensive) Group Fast Track $4,500 + GST (12 week program)
- 85. 12 week program starting 15th November Group Fast Track $3,950 (normally $4,950) Spouse/Partner comes Free (normally $500) Bring a Friend & only $3,450 each