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In the last two shows we’ve covered some of the big property investment strategies, negative gearing, positive gearing and positive cashflow property. In this episode we touch on renovations, development, vendor financing and wraps.
We then tackle the question of what you need to consider in order to work out the strategy that best fits with you situation, your goals and your needs.
Our listener question comes to us from Caroline in Ferntree Gully (Melbourne, Australia) who asks about how people are able to afford multiple properties in a short timeframe.
Quick Tip – In our quick tip, we talk about a book by Dale Beaumont, called ‘Secrets of Property Millionaires Exposed!’
- Work through the questions we’ve talked about today to determine what investment strategy suits you. The questions include:
- How active or passive an investor do you want to be?
- How much money to you have to start with?
- How much disposable income do you have for investing?
- What impact on your lifestyle are you willing to have?
- What is your risk profile. You can read more about risk profile here.
- Look at your property goals and determine the strategy that is right for you.
[DDET Click here to view transcript]
EPI 009 | What’s the Best Property Investing Strategy for You?
This is Everyday Property Investing episode 9. The show empowering everyday people to create wealth and achieve financial freedom, so get on board! Everyone can be a property investor! It just takes a little knowledge, a little support and some action. So get started with us today!
Kaz: Hi and welcome! I’m Kaz and this is episode nine of Everyday Property Investing. In the last two episodes of Everyday Property Investing we’ve talked about two very important popular strategies for property investing, being negative gearing and positive gearing, and in this episode today, we’re going to talk a little about some of the other property investing strategies and as well, we’ll help you to determine what your strategy will be by asking yourself a few very important questions. And in this episode’s Quick Tip, we have a book that you may be interested in, talking about property investing strategy. So I’m here with Den and we’re here to help you develop your knowledge and ours and share our experiences within our Everyday Property Investing community. How’s it going Den?
Den: I’m awesome, thanks Kaz. Yourself?
Kaz: I’m great. What’s news with you?
Den: Well great news I’ve just been on holiday. So my news doesn’t have a lot to do with property investing. It has to do with rest and relaxation. So we’ve been up in the north of Australia and we’ve had a fantastic time. And what about you Kaz, what’s news with you?
Kaz: Funnily enough, I was also in the north of Australia recently on holiday, not at the same time but yeah went up and stayed with some friends up there and had a lovely time. And it’s actually funny I was talking to one of my friends that I stayed with up there and she was sort of facing, a bit of a dilemma that I think a lot of people might face. And that is that they have got a property up there where she lives in Brisbane, and they’ve also got a property down in Melbourne that they used to live in. And both those properties together, is quite a hard financial commitment for them to meet but they’re slogging away in the hope that obviously investing in property is a great thing. But they’re in the middle of a sort of dilemma where they’ve sort of you know if we sold all or both of their properties we could probably buy our dream home, with a pool and big rumpus room and nice piece of land and all that sort of stuff. But that kind of leaves them with no investment sort of goals or no investment strategy or no investments full stop, so they’re sort of facing this dilemma and I think it’s quite common that a lot of people face. And sometimes I think about if I sold my properties I could live in a lovely home, but then I’ve sort of got nothing for the future.
Den: Yeah I’m exactly in the same position here I understand how they feel.
Kaz: Yeah what do you think Den, I mean have you ever thought about selling up and just cashing in?
Den: Look, I’d be lying if I said no, but I think the fact is I’ve worked hard and spent time building an investment portfolio and really if I sell now, I feel as though, sure I get myself a home but that’s it. Then every work day I do from now on is about building to the retirement and I thought I’d already started doing that when I started investing.
Kaz: Yeah. It’s hard to go back when you get started. I think just the thought of “wow I could live in this great place but I’ve kind of got nothing other than that”.
Den: Yeah exactly, exactly. And the nice things can wait sometimes.
Kaz: Yeah that’s true, delayed gratification.
Den: Okay so today on our feature segment, we’re going to have a look at your investment strategy and maybe see if we can answer a few questions that will help you decide what strategy is best for you. So far in previous podcasts, we’ve covered negative gearing, positive gearing, positive cashflow and all of these are buy and hold type strategies. So today we’re going to talk briefly about some other strategies that you may have heard of or will be interested in. Things like renovations or development, vendor financing or wraps and flipping. We’ll touch on the basics of what these strategies are but we won’t be getting into the real nitty gritty of these more advanced strategies for now. The point is to let you know that there are lots of ways that you can skin this property cat and you can learn what’s good for you and go with that. So Kaz, let’s have a look at the strategies. The first one that I’ve thought of was renovations.
Kaz: You’ve done some renovations before.
Den: Actually, actually I have done some renovations in two different places. And I think it’s important that we have a think about renovations in two different categories. And the two different categories I consider are, the ones that a home handyman can do and the ones that you need experts to do. Now I think it’s one thing to put up a set of shelves or to tile a floor even, but it’s something else to go and electrically wire a house. So you need to be really careful and you might need to check out whether you require a permit to do the sorts of renovations you might want to do. That’s not really going to be a problem if you want to put up a set of shelves if you own the place obviously, or even if you want a tile of floor. But as soon as it gets into plumbing or electricity, you’ve really going to make sure that the experts are taking care of that.
Kaz: I think for me Den, when I think about renovation the thing that would come to mind is that, if there’s a full on booming market, anyone can buy a property, slap a coat of paint, put some doorknobs on, suddenly the property is worth a whole bunch of money, but as a strategy renovation in all markets can be successful but you need to play the game a bit differently and I think it’s much more of a number’s game these days like when the property market is not just full on booming and everyone’s doing a renovation and making fifty grand off it, then it really is all about the numbers and you really need to assess the feasibility of the project before you just buy a house and think you’re going to make money.
Den: Yeah exactly, and I think the people who do well out of renovations are the ones that are almost professional renovators. They’re not people like you and I that would buy a property and look at it and then suddenly sell it. They’re people that do it for a living and what you’ll find is that they often employ people the whole way through, so what they do is they manage a task. And their renovations can involve massive things like moving walls or building a second story or extensions, all sorts of stuff that their research and their experience has indicated to them that in that area this is going to make a lot of money. And so there’s a whole lot of considerations that I think the average person hasn’t got the experience of making.
Kaz: Yeah just recently actually, I’ve become quite interested in renovation. And I was actually thinking for the next purchase that we’re going to make would be a renovation project. And that was until my recent development experience, but we’ll get into that in the second. So I actually have just recently purchased a quite high end product that is like a renovation toolkit type thing. It’s actually very comprehensive and I’m quite impressed with it at the moment. Now I’ve been working my way through it, sort of a multi-media course and stuff. And there’s a whole lot about assessing the project from the numbers perspective and knowing before you go in, what percentage return you’re going to need to get, what amount you could spend on that property. So that you’re not actually buying a property and then finding out that well that ain’t going to work. Before you purchase you do all the numbers and make sure that you can actually get a profit out of it. And this has been developed by professional renovators who have done this quite a bit. And it looks like a great product so far obviously I haven’t used it yet, but yeah it’s really something that looks pretty good.
Den: I find that really funny because after renovating two places I’ve sworn that I will never ever do that again. And I’d rather slam my fingers in a door than renovate a house again. And in fact generally when I renovate I do end up having accidents and I do end up slamming things or dropping things or smashing things so it’s not something I really want to go anywhere near unless I’m the one managing the project. But good luck with that if that’s what you want to do.
Kaz: I think it’s a bit one sided in our relationship as well, my partner’s so not into it but I’m excited by the prospect so we’ll see how that goes.
Den: There you go just become managers. Alright now the next one is something that I want to ask you about. Because as we’ve talked before, it’s development by the way, as we’ve talked before developing property I find ooh scary, right. And it’s something that you’re really moving into in quite a confident way. So tell us about property development.
Kaz: Well obviously as you said I’m moving into it in a confident way that doesn’t make me an expert in it of course. But recently, it is something I’ve been interested and I recently attended a workshop that was about property development, it’s quite a while ago actually. From that it really spurred me on to take some steps and I have taken some steps and at the moment we’re in the stage of having full construction drawings made for a property that we’re going to build a second dwelling on and hopefully make some money out of that. The things I’ve learned so far is you need to ask a lot of questions and find out, I’m actually documenting everything I’m doing, everything I’m spending, all of the process as I’m going so that next time around I’ll have a better understanding of this process. I’m consulting with experts wherever I need to, speaking with friends who have done it before and things like that. And really I’m going into this as a learner, I’m trying to get something out of it. The other thing I’ve learnt is that, property development is not a sprint. It takes, from what I’ve been told from the people that we we’re working with at the moment, I mean this is a 12-month sort of project, so it does tie up your funds.
Den: When you say a 12-month project do you mean from beginning until end, or do you mean beginning until someone puts a slab of concrete in the ground?
Kaz: From beginning to end I’m hoping, and that varies. I mean a lot of it comes down to the permits that you need to get. At the stage we are at, at the moment, we’re going to submit these construction drawings and then it’s going to sit in the council for six months and from what I’m told, six months is pretty good. This particular council we’re told it’s around six months but you can sit in another council for eighteen months and particularly if you run into issues with getting the planning permit through that can really delay it. So a lot of people with property development, you’ve got to be able to have money tied up in a project for some period of time and not expect to realize your profit until sometime down the track.
Den: Okay so you’ve really got to think about. There are two things I’m getting actually; one is what your cashflow going to be like for the next two or three years possibly, and the other one is the more educated you are, the more you speak to other people, the better things go.
Kaz: Absolutely, the cashflow thing is a critical component.
Den: Ok so I would never have thought of that. Alright the next one is vendor financing. Now this is something that neither of us have a lot of experience with, but vendor financing is about the seller coming to a financial arrangement with the buyer that suits both of them that would enable a buyer to buy the property. Now can you tell me Kaz, when would you see vendor financing, when would you see it happening?
Kaz: Well some people actually just use it as sort of by accident as in, wanted to buy this property, couldn’t know if necessarily, the seller might not be getting this sort of deal they’re after from the buyer but this buyer comes along doesn’t have the means to complete the transaction in a normal way so they come to some sort of arrangement. And that’s kind of a bit of vendor financing, just by circumstance, but then there’s a whole bunch of people out there who actually employ this as a strategy so they might be, there’s a particular guy I’ve read about the book actually I’ll talk about it later, where he actually goes out and finds people who want to buy a house and then helps them arrange the finance through him.
Den: So he finds people that want to buy a house but they can’t get a loan?
Den: Okay, okay.
Kaz: For various circumstances some people don’t have the 20% deposit that might be required or they don’t have a good credit rating so haven’t been able to get the finance in a normal way. So you might see people who put up signs that say ‘we buy houses’ and stuff like that…and you see it a lot in Queensland actually when we were on holidays we saw it heaps. Yeah but these people would go out find people who need to buy a property and then buy the property for them and do the finance between themselves.
Den: Okay, so wouldn’t it be risky then if I was trying to arrange a financial agreement with someone that couldn’t get a loan. Doesn’t the fact that they can’t get a loan sort of suggest that, it increases the risk?
Kaz: Well you would think so, but I think the whole idea is to try and negotiate a win-win strategy for the people involved minimizing risks where possible, but obviously it isn’t, you know, if you’re dealing with people that can’t get a loan through the normal way then I guess you would want to think that there are risks here and obviously there’s a whole host of legal stuff that you need to put in place for the contracts of that sort of thing.
Den: Well it’s certainly not the most conventional way to invest in property, and nor is flipping. So flipping is where someone may purchase a property and they sign the contract but they sell their interest in that property to a third party before the settlement or before the deal is closed. And I know, I’ve listened to podcasts and I’ve read some accounts of people that make an incredible amount of money from flipping. And again it’s one of these less conventional, probably in my opinion a little bit more risky strategies but when it works, people actually make money without putting a lot of money down.
Kaz: Yeah I also haven’t had experience in flipping although I have read quite a bit about it and people can do well out of it. But yeah a high-risk strategy a bit more advanced I think than what I’m ready to jump into. Now I know I’m busy with other things and that’s fine, something I would, may consider in the future but yeah you’d always be, not wanting to be caught with your pants down, so to speak, if you can’t sell that interest on to a third party before you have to settle or close, you’re going to make sure you can cover what you need to cover so once again it’s a circumstance when you really have to think through what you’re doing.
Den: Fantastic. So then if we’re considering these strategies, if we’ve got buy and hold strategies and we’ve got the issues we’ve talked about already in this podcast, how do you work out what strategy is right for you and how do you make your own property journey? What sort of things would I want to ask myself?
Kaz: Well I think there’s quite, there’s a few questions that people really need to sit down and think about when they’re trying to come up with their strategy. We’ll go through a few of those. One of those questions that I’m just sort of thinking of now is how active or passive an investor do you want to be, because things like some of the strategies we’ve talked about today, renovation, development, they’re quite active strategies you really need to be involved and there’s a whole group of people out there who just want to buy a place. Someone else manage it and not think about it again.
Den: The whole no work and pay. So I think obviously what we’ve talked about today doesn’t really fall into this no work and pay thing, which I’m a big fan of quite frankly.
Kaz: And also you got to sort of think about your stress levels and things like that. I mean if you’re the sort of person who dealing with constant issues, development project for example, is often constant issues that you need, or a renovation project, you’ve got to solve problems. You got to think fast and you got to get the problem solved, you got to get in and get out and all that sort of stuff and if that’s going to stress you out then maybe it’s not the right strategy.
Den: Yeah and I wonder if as well, if you’re at work and something happens, are you contactable the whole time. I know, I’m a school teacher, there’s no way someone could contact me if I’m in the middle of teaching a class. So I wonder if that’s another reason why these strategies maybe aren’t the best ones for me.
Kaz: Yes so how active or passive an investor do you want to be. Think about how much time you want to assign to things like doing research or being involved in a project or things like that.
Den: And I think some people are naturally very hands-on people as well so they want to do that. So the next one is how much money you have to get started. So how does that come into this one Kaz?
Kaz: Well when I think of this one, I think about do you have a deposit to put on property in the first place. And that can really impact upon the type of property that you can buy. So if you’re looking to buy inner city property that’s going to do well in capital growth wise hopefully and all those sorts of things, then you’re probably going to need to have a fair whack of a deposit, you know 20% on a $400,000 house or something is a bit of money. So if you don’t have that sort of, if you don’t have 100K sitting or whatever then you might have to have a look at your strategy.
Den: I guess as well that if you’re going to do renovations you don’t only need the price of what you’re going to pay but you’d need to have a whole lot up your sleeve as well. I remember when I bought the place that I’m living in now we probably spent $60,000 or $70,000 on renovations. Really the place wasn’t that great, let me assure you.
Kaz: Well it looks a treat now!
Den: That’s the renovations! But the fact is that that sort of money couldn’t be touched, we couldn’t loan against it, the house didn’t have that value at that point in time. So really we needed that up our sleeve before we can even start.
Kaz: Yeah. I mean there are other strategies like the vendor finance type thing and the flipping. Flipping theoretically you may not need a lot of money upfront. You can get in and get out. Like what we said before that’s risky because what happens if you can’t get out in time and then you didn’t have money to begin with and so you have to think that through a little.
Den: Yeah it’s great as long as it works. Alright, and then the amount of disposable income and this comes also down to cashflow. Doesn’t it, and we talked about for you and your development how important it was that you could sustain your lifestyle for two or three years without having that income coming in you.
Kaz: Yeah and also the other, I mean we’re lucky in our circumstance because we’ve already got the house at the front of the block, is tenanted, and it’s a positive cashflow property. So there’s not a massive cashflow issue for us. There’s actually, there’s not a real cashflow issue there because the property is being paid for anyway.
Den: And you still have to pay for the building. You still have to pay for all of that sort of stuff. And that’s all going to be paid for before anyone moves in.
Kaz: True, and even now, like we’re putting out money for the things like doing construction drawings and stuff like that. So that’s money out of my account, it’s now out of my account for quite a long time.
Den: Now can you take out a loan from the bank saying, we’re about to start constructing here. We’re going to build a $150,000 property, can you give us a $100,000?
Kaz: Yeah, well that’s what, particularly when you’re building a house, when you’re going to buy a house that’s in existence you purchase the whole amount of money and you may pay it over. But when you’re actually building a house and a lot of people may have already experienced this, that you actually can get a construction loan and the loan is drawn down in stages of the construction so you get the overall construction loan for the amount that you need, but then it gets drawn down at the various stages of building so you need to factor that in to your cashflow and your costings and stuff like that. One of the benefits there is that you don’t draw down the full amount of the loan straightaway, which means you’re not paying interest on full amount of the loan for the whole loan construction period. You’re just obviously paying on what you draw down so obviously you pay a deposit upfront, you might pay another at the completion of the slab and another one at lock up or something like that.
Den: And so over the period of the development growing, your loan actually increases?
Kaz: Yeah that’s right and therefore so do your interest repayments and things like that. And I also think this how much disposable income do I have, to me that makes me think about negative gearing as well. And if I decide to, that negative gearing is solely on its own as my strategy and I’m going to continue to buy negatively geared homes then I’m going to need a lot of disposable income around.
Den: Well I think there’s going to be a limit at some point in time, isn’t there? You can’t just keep losing money on every single property without getting to zero.
Kaz: I mean there are a lot of people out there who have multiple negatively geared homes and often those people do have enough, hopefully those people do have enough disposable income to cover those costs and that’s really important.
Den: Yeah absolutely. And the next one I think is related to that as well, it’s about what sort of an impact on your lifestyle you’re willing to withstand, what you can give up. And I think that’s where I think about that every dollar you save is an easier dollar in your pocket than a dollar that you’ve spent. And so if you can change your lifestyle to simplify things and make things maybe so that it’s more geared towards investing that’s quite a lot easier.
Kaz: Yeah I think this impact in your lifestyle thing was really important to us when we started investing. And we were cognoscente of the fact that we didn’t want to be shelling out all of our disposable income on properties at the detriment of our life, like we wanted to still be able to go on a holiday each year or two holidays each year. And we wanted to buy…
Den: You want to buy your gadgets don’t you?
Kaz: Exactly I want to buy gadgets. I want an iPod and I want a, yeah so we were conscious that, and that’s what influence our strategy mostly is that we wanted to maintain a lifestyle that kept us happy at the same time. So we tended to look around more for positive cashflow properties that enabled us to keep on buying gadgets.
Den: Exactly. And you and I think about everything you probably realized now that you’ve got, do you have an iPod?
Kaz: No, not yet, Christmas Present Den!!
Den: Ok maybe you don’t have to give it up. And the last one is of course having a look at your risk factor and how comfortable you are with taking risks. So clearly if you are someone who doesn’t like taking risks at all, you need to consider which strategy is going to help you sleep at night and how you’re building security and what level of security you have. If you’re someone that’s quite happy taking risks you might find that you’re drawn to the excitement.
Kaz: Yeah I think the risk profile thing is really important. And as you say at the end of the day it’s all about how well you sleep at night. So people will tell you all about the strategy that they think is best…and you need to do that you need to do that. But at the end of the day you’re the one who’s going to be forking out money and you’re the one who needs to sleep at night, be comfortable with the level of debt that you are in. And just be comfortable with the strategy that you are, you’re the only who can answer that sort of a question.
Den: Yeah I suppose lastly as well there is a thought that you can combine strategies. When you are investing often people will say ‘Oh make sure you spread your portfolio, make sure you put all your eggs in different baskets’. So if I was starting to look at combining strategies I’d probably want to wait until I was comfortable with one before I did the other or would I just start looking willy nilly.
Kaz: Yeah for me I’m a bit like you in that I would like to sort of make sure I’m comfortable with what I’m doing and then I might look at bringing something else into the mix, rather than just, lot of people just go out and have, ‘oh quickly, I need to buy this no money down property and flip it and then I need to renovate over here and then I’m going to buy this negatively geared thing over there’ and it’s just confusion so for me, I think it’s good to start out with something and then work other things in. But I think this whole concept of combining strategies is a good thing. Like there’s a lot of people out there who go oh no every house has to be a negatively geared home or every house must be positive cashflow and I’m a bit more, there’s many ways to skin a cat, and you might have three positive cashflow properties that offset one negatively geared property that is growing really well in terms of capital growth. So I’m a big believer of combining strategies but I do think it’s best to focus on something, learn it and then introduce new things.
Den: Yeah and I suppose your own risk profile is going to determine how much you’re willing to do at the same time.
Kaz: Of course, yeah.
Den: So Kaz we’ve got a listener question and frankly we love the listener questions because I think wow someone is listening to us…
Kaz: I know it’s great we’ve actually had a few listener questions recently I’m really excited by that so please do keep them coming.
Den: Yeah and let us know when you’re listening, I can’t believe we’ve had people, we’ve had people from Georgia, people from California, all over the world, people from Adelaide as well…
Kaz: Even Adelaide…
Den: Even Adelaide which for us isn’t that far, but for someone in Georgia that’s quite a long way from here. Anyway, what’s the question we’ve got this week Kaz?
Kaz: Well this question comes to us from Caroline and Caroline is actually in Ferntree Gully, which is a place in Melbourne, not too far actually.
Den: Also a long way from Georgia!
Kaz: Yeah, very long way from Georgia. Caroline writes, ‘Hi Kaz and Den, I was listening to you guys talking about positive cashflow property the other day and wondered if that is how people could end up with heaps of properties. I read the API magazine (API is Australian Property Investor, just for those people listening, which is a regular property investing magazine here). So I read the API magazine sometimes and you see a story of people who’ve bought like eight properties in two years. Is this how they do it by finding positive cashflow properties? Keep up the good work. (Thanks Caroline!) Thanks, Caroline.’
Den: Thanks Caroline! Good. Well Caroline, essentially yes. One of the things we’ve talked about just before with negative gearing was that, if you lose money on each property there comes a point in time where you can’t afford to keep buying properties; whereas if you make money on property, on each property, then theoretically your ability to buy property is infinite. So one of the ways people can buy again and again and again is by having positive cashflow properties. Now it’s worth remembering though you still need enough equity or enough deposit to buy the next property, and quite often these magazines will highlight people who may have bought quite a number of properties in a very short space in time and you’ll see that they’ve bought properties which may be relatively high-risk. They might be in a high mining area or they might be a niche property and that niche has just worked really well for them and it’s not necessarily something that you could duplicate without either being very lucky or doing a lot of research.
Kaz: Yeah I also see sometimes with those same sort of stories where suddenly they bought eight properties in two years and often what’s happen is, they’ve actually paid off their own home or something like that. They’ve been sitting on a mound of equity for a long time and so suddenly they’ve got, now know they might have an $800,000 home or, because they bought it 50 years ago and it’s now worth a whole bunch of money and so they can go out and pretty much release 80% of the equity in that home and purchase multiple properties all in one whack so that’s how a lot of people can get to do it as well. Unfortunately that didn’t happen for us.
Den: No. I’ve also heard the same sort of stories about people that suddenly have 20 or 23 properties or something like that, and then you find out that they bought a block of flats that had 24 flats in there. And each of the flats is worth $28,000 or something so it’s not as though they’ve gone and bought 28 properties. But you know I bought a block of flats doesn’t sound anywhere near as sexy as I’ve gone to 0 to 24 properties.
Kaz: Yes, now that’s a good headline that one.
Den: So exactly
Kaz: Oh good
Den: Well, Caroline, thanks for your Email we hope that we’ve helped answer the question but yes essentially that is how they do it, but of course there is some other factors that come into play. And keep your emails coming in.
Kaz: Yes and just another thing to add on that. It’s not about quantity necessarily either, so you can have three great properties that do really well for you or you can have 28 properties that do the same for you. So it’s all about the type of investment that you’re in. Now as we’ve said earlier we love to get listener questions in and so please keep them coming it’s been awesome to just get emails from all around the world and asking really great questions. The address is email@example.com. Just send through your questions, comments, any experiences you want to share, anything at all and we would love to hear from you.
Kaz: So I’ve got a Quick Tip for you today Den.
Den: What’s the Quick Tip this week?
Kaz: Well I’ve wanted to share, I mean seeing we’ve talked today about some different strategies I thought I would offer a book that I had, I was going to say written then, but I didn’t write the book, a book that I’ve read recently, it’s by a gentleman called Dale Beaumont. He sort of edits and writes a whole series of books, which are the Secrets of People Exposed, and so it’s like Secrets of Property Millionaires Exposed is this particular book. Now they’re are bit of a, they’re are quick read, they’re a fluffy, sort of feel-good success story type of thing. So it’s the sort of thing that you buy at the airport and read it on the plane to somewhere.
Den: Just before falling asleep.
Kaz: Yeah exactly. But the thing about it is, that I liked about this book is that it had a whole bunch of success stories of various people who have done well in property, obviously. But the different strategies that the people used and applied were so varied, it was real example. There was examples of vendor finance, of flipping, of renovation, of just negatively geared buy and hold type of strategy. And so it was actually really interesting to actually see how people apply some of those, especially some of those advanced strategies that you don’t know a lot about. So I thought it’s a might be a Quick Tip for you to have a read of that book if you come across it—Secrets of Property Millionaires Exposed by Dale Beaumont.
Den: Fantastic. Now we’re going to have a link for that on the website?
Kaz: Yes, yes we shall.
Den: Ok great!
Den: Alright and it’s time now for this podcast Action. And the action is to work through the questions we’ve covered in today’s episode to help you determine your strategy. But write down those answers and have a think about what sort of strategy suits you. Then head back to your property goals that you’ve developed and I know, a few podcasts ago we asked you to develop your goals and see how these answers fit in with your goals. So I’ll repeat the question for you. First of all, how active or passive an investor do you want to be? Secondly, how much money do you have to start with? Thirdly, how much disposable income do you have or what’s your cashflow like? Fourthly, what impact can your lifestyle have or what are you willing to give up? And the last one, what’s your risk profile? So how much risk are you happy to withstand. Now once you’ve done all that have a look at your answers and make sure that your strategy is in line with the answers to that.
Kaz: So that brings us to the end of today’s episode. And in next episode, we’ll be actually looking at banks and loans which is a really important topic. So just bringing us to a close, if you have any comments you’d like to send through to us, we would love to hear them firstname.lastname@example.org. Next episode we’ll also be having our usual segments which include our news and tips. Do get on over to iTunes and subscribe to the podcast. And in fact if you’ve made it this far with us, we’re in episode nine at the moment and you are enjoying the podcast we would love it if you could head in to iTunes and just give us a rating there, hopefully a favorable rating!
Den: Yeah nice one would be good. Also maybe some comments as well. We’d love to think that if you have stayed this long with us that you’re happy to say something nice about us.
Kaz: It would be great. So until then.
Den: Until then.
You’ve been listening to Everyday Property Investing, the show empowering everyday people to create wealth and achieve financial freedom. Please note that this show provides general advice based on personal experiences and is for educational purposes only. We’re not qualified accountants or lawyers or licensed to provide professional financial advice for you. We strongly advise that you employ the services of qualified professionals and seek their advice that is specific to your own personal circumstances. You can visit us at www.everydaypropertyinvesting.com. See you next time!