Buying Our First Property: Our Current Plans

Hey guys, Ryan here from on property and today
I’m doing a walk and talk with Simon Everingham, assignment goodman. Hi Guys. How are we? And so I will want us to talk about our, what
do we want to talk about? We want to talk about our property plans and
what we’re doing. Simon is nearly at the point where he’s going
to buy his first property, which is super exciting. Yeah, I’m a little bit further away than that,
but not too far. And so I’m getting really passionate about
the two properties to financial freedom strategy and doing that for myself, for my longterm
financial freedom. And so we thought we would just do a pretty
cruisy chat today talking about where we’re at and what we’re looking at doing. So Simon, do you want to give the good people
are and a bit of an intro as to what you’re thinking of doing and where you’re at? Yeah, definitely. Um, so it’s been a pretty hard slog for the
last 18 months trying to save up for this first house deposit. I’m sure all of you first time investors out
there now. The pain of this and even sophisticated investors
would know how hard it is to get that first deposit together, but I’m just about there
probably about two months away from actually purchasing my first property, which is great. That’s super exciting. Yeah, it’s really exciting. They in Ben, my brother actually worked through,
worked out the figures the other day and created a bit of a plan as to what I should be focusing
on and what I want to be doing for myself. And um, it was, yeah, really insane to just
have that thought there that like, wait, this is two months away, like 18 months. He’s only two months away now. It’s really exciting. Um, but basically, yeah, uh, you guys have
talked about the two properties to financial freedom strategy. Uh, my plan is a little bit unique because
I’m young and I’m working in this industry every single day. I really do understand what I need to be doing
to where I want to get to, but my plan is to purchase maybe one of the acceleration
properties initially really close to the beaches because I’ve got a strong connection with
the beaches from where I grew up living and I’m an ocean. I’m an ocean now. Michelle, I avoid just slide me a dolphin
is my spirit animal, so that’s what I’m going to be focusing on for my first property, trying
buyer within walking distance to the beaches and utilize that as potentially a cashflow
property if the opportunity presents itself, but more so one of those properties that will
hopefully achieve some really significant capital growth in the longterm. And so are you thinking you want to achieve
financial freedom as quickly as possible or is this more like a longterm play for you
because you enjoy your job and then also you’re looking at business for the future for yourself? Yeah, exactly. This is a longterm play. I’m not necessarily looking at achieving financial
freedom in the next five, 10, 15 years. It’s like I just want to secure the properties
that are going to allow financial freedom, but because do have those plans to start my
own businesses and and continue working with this, I really do enjoy it. I can’t ever see myself stopping to work,
if that makes sense. Well, I think that’s similar to me in the
strategy that I want to implement is that I kind of already have financial freedom through
my business, so the pressure to get pulled the cashflow out of these properties as quickly
as possible isn’t for me, so really investing for me and for my wife and my family is a
longterm play so that if eventually the business ceases to exist or income stops coming in,
then we’ve got these quality longterm assets that we can hold forever and that we can pass
on to her children and stuff like that. So it’s more about buying that really great
asset and taking your time to do that rather than rushing into the market and just. Yeah, getting anything. I’m. I’m at the exact same exact same place as
we were just talking to you in our little coffee date. Just now I’m a, I’m ready to buy my first
investment property, but that doesn’t mean that I’m going to jump the gun and purchase
the first property that comes on the market. Once I have the deposit that I need, I’m really
going to strategically identify the right suburb that I want to be targeting, the right
pocket of that suburb, the right type of property that has the potential to manufacture value,
maybe either really depleted home that one day I could knock it down and rebuild or on
a really large piece of land where I could maybe add a granny flat in the backyard at
some point in time to still have that cashflow option, but still really good area and location
that hopefully is going to get me really great capital growth but just cannot say. Sam, can we just twist so we can show the
audience? Where we are right now is this guys, this
is so good. We’ve done some walk and talks to you before,
but we’ve just walked from the new office which is now on the water and she’s a pretty
sweet deal. It’s pretty good place to work. It’s not the worst. We’ll have to give these guys a two at some
point of the office. I thought one of the cool things that came
out of our coffee date and just so people know if you ever hang out with me, I’m always
wanting to drink coffee, you know, saying that it, I think that was okay. I had two coffees, the and, and that was my
fault today and that’s a standard day for me. I feel pretty good about the coffee. Anyway. Something that came out of our lovely romantic
coffee date was um, just the amount of deposit that you need needed. Surprise me as to how small it is and we don’t
have to talk about figures because obviously everyone’s situation is different. Yeah. But like I was talking to ben the other day
about me and my wife is saving our deposit and getting ready to go and thinking how long
it’s going to take. And now after talking to you I’m like, Oh
man, okay. Yeah, I really need to. Yeah. I need to speak to a mortgage broker and I
need to work out what the exact figure is because I’m actually, I think I’m a lot closer
than what I thought I was. Allison’s that. Yeah. So yeah. Well that’s what I did. That’s exactly what I did. I, I got my fact find together and send it
off to the mortgage broker that we work with. And um, he came back to me and said, these
are your options. And I went, wow, that’s amazing. And um, at the moment I’ve been focusing a
lot on work and I have been able to save up a lot of money every single month. So it’s been given me the opportunity to save
for that deposit really quickly and it snuck up pretty fast on me. So, um, um, yeah, really stuck to be at it. Yeah. And that comes back to paying yourself first
just kind of happens and that’s what’s happened with me and my deposit is that I’ve been paying
myself first and not really thinking about it or really looking at it and that has put
some cash flow pressure on my everyday life. And having to work with the money that’s coming
in and we’ve had some stressful situations when it comes to money, but I’ve been paying
myself first anyway and kind of putting that aside and not, not really looking at it, not
really thinking about it. And then I was talking to carol today and
she’s like, do we, do we still have that money saved? We do, we still have it saved and still put
away. And so it’s really exciting that we have that
and that we are closer. So yeah, that’s really funny that you say
that to you in having those conversations because I was actually talking with my best
mate from down in Sydney and he’s actually just put down a deposit on a piece of land
and he’s hoping to build a brand new jaw lock up here in Brisbane. And um, we’re both talking about our recent
recent times, the last six months. And he’s like, dude, we both love traveling
and going away and doing fun things. He’s like, man, I can’t handle this. I’m just putting everything that I earned
into savings. And I’m like, I know exactly how you feel. I’ve been focusing on saving so much at the
moment that I haven’t really done anything nice for myself. But to tell them about the bike. Oh yes. I had a little bit of a moment the other day
and I’ve, I’d love my mountain biking and watching some videos online and stuff like
that. And I’m like, I need a bike. I just need a black. And I had a bit of cash coming in and I was
like, I’m buying a bike. So I went to the store and looked at a $3,000
brand new man in black and then I was just about to go to the store and pick it up and
I was in the shower and I’m just like, don’t do it. So I turned to my heart was telling me go
and do it. But my head was just saying, you don’t need
to do this. If you do it, you’re going to put your property
on hold by another three months. You’d say, yeah, it’s just those bits of cash
can be so hard to save and you’re so close. Well, to do that now, whereas to keep pushing
and to buy the property and then maybe reward yourself with a bit of delayed gratification. Yeah. So with this first property you’re looking
at, you’re looking at probably an acceleration property. What’s the goal of this property? Is the goal to get you to property number
two or is it just to a high quality one that your hold forever and pay off over time? The goal is to purchase a quality where I
can ideally manufacturer in short term equity so I can leverage into that second property
within 12 months to 18 months. Are you going to manufacture that? You talking, buying under market value, talking
about doing renovation? Uh, it’s, it’s a tricky one because, oh, here
we go in the tunnel now it’s a tricky one because in, in hated markets it can be really
difficult to purchase under market value, but ideally looking for that unique property
distress sale where I can actually make a bit of money on the way in and, and I do have
lots of friends that have unique skill sets like builders, landscapers, painters that
can actually help me out and um, and do a little bit of a cosmetic renovation on that
property in the next six months or something to hopefully increase the value of that property. And so that’s what we would call the difference
between an active investment in a passive investor. So passive person will just buy it and then
just leave it and let it do its thing. Whereas an active investor is something more
which is manufacturing that growth in the beginning. Or maybe you went out first and then you do
it a bit later to create that growth in your more. Taking an active role in the investment. Exactly. I, because I love property, I’ve got a huge
passion for it. I’ll always be an active investor, I guess
until I’m too old and just living off the passive income that have generated for myself,
but for now like to acquire those high quality assets at a really good time in, in the global
cycle is my plan, so I’m going to really knuckle down and make sure I can do that as soon as
possible. Yeah. And I think my plan will be a more passive
role in the fact that I want to do the two properties to financial freedom. So still buy the high quality asset, still
bought a property with potential for manufacturing growth or probably not. Go ahead and manufacture it straight away
because I had done it like renovating, you know, but my wife might want to do that and
that’s cool. And so she could go and do that. But really it’s that for me, the opportunity
cost and the time that I could spend is probably more better spent in business is spent on
doing a renovation that might make me. Well, it depends how much it’s going to make
me. Sure. To me, that would just change my focus. So I want to buy, as I said, I don’t need
the income from it straight away, so it would be those high quality assets you’re going
to hold for ages. I’d build a granny flat on them, probably
straight away and so then the positive cashflow and then they’re just paying themselves off
and then I guess try and save another deposit and go again. Or maybe I do need to be more active and try
and get that equity growth so then I can leverage against it to go again and just get that foundational
stage done before I buy my own house. Really? Yeah. Well, and, and that’s the thing. Everybody’s got a different strategy. No, no one strategy fits every single person
and it’s about which, depending on which stage of life that you’re at. Um, so you know, identifying what, what you
need to do to get to your longer term goal. We’re both on the same journey, wanting that
to properties to financial freedom strategy. However, I’m just mixing mine up because one,
I’m a tiny little bit younger and I’m too, I, I really enjoy this and I’m more than happy
to do little renovations and manufacturer that value so I can acquire the properties
as soon as possible. And I think as well, this is a good example
of how you can do the acceleration phase of investing differently. So for you, the first property that you buy
in might be an acceleration property or you might hold it kind of depends on what opportunities
come onto the market. Yeah, and then that could be a way for you
to accelerate paying off your properties if you sold that down the track. Whereas for me, acceleration I would be more
inclined to just by foundational properties and then just keep acquiring those that are
positive cashflow that are going to pay themselves off and then acceleration for me would probably
be accumulating more cashflow properties or it would be through business and making money
in business and then using that money to pay it off. So rather than trying to do acceleration properties,
I think I would just focus on foundational properties. And accelerate through extra income and make
separate to property investing. Yeah, sure. When I’ve talked to about this, maybe a acceleration
properly, what I’m going to focus on is still the fundamentals of those foundational property
son going to be targeting in an area where if down the track I want to convert it into
a dual income property and hold it longer term so it becomes one of those foundational
cashflow properties. I’m going to do that. So targeting the right cancels that actually
allow that to happen in targeting large pieces of land where I could potentially knock down
in the future rebuild or even add the granny flat in the future. So I’m kind of getting the best of both worlds,
if you know what I mean. And giving yourself options because you want
those options. Exactly. If you can. And that’s the thing when people say, Oh,
do you want capital growth or positive cashflow? Do I want everything? All of it. Yeah. And it just takes more time doing more research,
knowing your market better to be able to do that. You shouldn’t be sacrificing one without the
other. You should always be targeting all the, all
the fundamentals of investing, not been timing the right market at the right time, achieving
good capital growth over the long term cashflow neutral to positive so it doesn’t cost you
too much in the short term and identifying a probably yet where you can manufacture value
at some point. But I ran out adding a granny flat and knocking
down, rebuild those types of things. Yup. And so that’s Kinda where we’re at at the
moment. So I’m and will probably bought his first
one before I do, but that’s going to be exciting to watch and exciting to talk about once we’ve
done it as well. And things may change. You know, you did a video with Ben not that
long ago saying you build property instead of existing today. Right now. Okay. I’ve changed again, that was my mortgage for
our case. It’s going to take you a long time. Get into to get the deposit required for a
brand new property and even if I was going to use the first home owner’s grant, so I’m
understanding that I really want to get into the market as soon as possible so I’m going
to focus on an existing one now. Just a massive testing fault, right? They’re 30 years old and 30 years old and
still going through puberty. Right? Well, I’m going to finish the beer guys. I’ve embarrassed myself. Know we hope that you enjoyed this episode
with us. Just sharing kind of our story. This is going to be exciting thing to document
as well and to look back on once we had purchased their properties and they talk about at a
future date. So thanks so much for watching guys. Until next time, stay positive.

2 thoughts on “Buying Our First Property: Our Current Plans

  • Congrats on both being close to buying your first properties. I am finding it difficult to be confident enough to jump into a second property as a single female in my 20s. Being an owner builder was the key to getting some solid equity for me in my first house so i probably shouldnt be so cautious

  • What are you guys talking about. "Manufactured growth, foundational properties, accelerational property" these are just made up terms used to describe capital growth. The only factor that determines capital grown is availability of credit, thats it. The property itself depreciates, the growth is in the land. The banks are tightening their lending standards, guess what will happen to the prices of property in a market place with less credit?

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