I Was Approached In A Bar By An On Property Listener!


Sells out having drinks the other night. And someone came up to me and said, Hey Ryan,
I know you from online and I know you from on property. Can I sit down and have a chat? And it was really awesome to have a chat with
this person about their financial situation, about what they’re trying to do. And I kind of wanted to share this with you
guys cause I thought it was a really interesting conversation. Now I won’t say who it is because obviously
I want it on a privacy and things like that. But I’m sure if you’re listening to this,
you’ll know who you are. If you guys ever see me out in public, feel
free to come and say hi. I always love to meet people and have conversations. As I’ve mentioned in other videos, I love
talking about money. So if someone comes up to me and they’re like,
I know you from on property and we get to talk about property, we get to talk about
money, we get to talk about finance, then that’s just gonna make my day. So if you see me, feel free to come and say
hi. So basically having beers, we sat down and
chatted for about 10 or 15 minutes and just this person laid out their situation with
me about how they are looking to purchase an investment property, but they got stuck
in order to get lending. So they already owned one property, they own
their own home and they’re on this journey where they want to do the two properties to
financial freedom strategy or they want to do a version of that and then want to start
building up their passive income through investing in property. But they were kind of stuck in terms of getting
lending. They had just had a child as well. And so obviously as you have kids and it makes
it harder, but what was really cool about this situation was how we’re able to look
at some ideas of potential ways that they could move forward. Maybe not right this second, but when the
partner goes back to work, then they may be able to get lending despite the fact that
the mortgage brokers said they couldn’t borrow money unless they earn x amount of dollars. And this I think is really important for everyone
out there to think about as well, because sometimes you’ll go to a mortgage broker and
you’ll lay out your situation and you’ll lay out your goals. They will then interpret that and tell you
a yes or no, yes you can borrow or no, you can’t borrow. It’s often very important at that stage to
say, what do I need to do in order to be able to borrow? And they were given an answer that is who
you need to earn x amount of money that exceeded what they were able to do. And so they felt stuck, but there was actually
other things that they could try as well. So it’s very important that you find a good
mortgage broker and that you looked down different avenues as well. So you kind of mortgage brokers don’t really
give you the answers into all of the different things that you could do that might give you
the most obvious one that is not actually achievable. But yeah. So let’s talk a bit more about this conversation. So they owned, they own their own home that
they were living in at the moment and there were actually looking to purchase another
property that was going to be another home that they were going to live in. So they were moving towards actually moving
house into this new property. So the first thing to look at when you speak
to your mortgage broker is to assess whether or not lending requirements or how much money
you can borrow is going to be different, whether you’re borrowing to buy your own home versus
borrowing to buy an investment property. So given the APA guidelines, it can actually
be harder for investors to borrow money rather than poor people borrowing money to buy their
own home. So you need to speak to a mortgage broker
about this. I just got something in my eye. He need to speak to a mortgage broker about
this because they will know the ins and outs of it, but it can be very different looking
at purchasing your own home and turning your existing home into an investment property
versus actually looking to buy an investment property. So I have heard of people doing this where
they kind of home hop in the fact that they will buy a place as their home. They will live in it for whatever the minimum
required time is. Maybe it’s six months, maybe it’s 12 months,
maybe it’s longer, and then they will move out and then turn it into an investment property. So speak to a mortgage broker about whether
this is possible for you, but for this person, that was one of their options. First, let’s go back to the mortgage broker. Let’s talk to them about buying this as our
own home because when they did the assessment originally they were just talking about buying
an investment property. The other option they had is that they had
the ability to potentially build a granny flat on the property that they were living
in. Now this can be beneficial when it comes to
getting alone just because it’s going to improve your cashflow situation quite dramatically,
especially being in Sydney. I’m not sure if the property was in Sydney
or not, but building a granny flat for around $120,000 and then being able to rent it for
around three or $400 per week is a significant rental yield for that property and it’s going
to boost the rental yield of your overall property as well. And that is income that the banks are going
to take into account when it comes to deciding whether or not they can lend you money. So they will look at the income from your
investment properties. And so if you have income coming from a granny
flat, you have income coming from the property as well, you’re going to have a higher yield
on that property and that may be what you need to push you over the line. This person in particular I think had some
profit share in a company as well. So banks don’t necessarily identify that as
income, but that profit share could have been used to help build that granny flat as a deposit
in order to get the loan. And I’m not sure whether they could get a
loan for the granny flat or not. Probably be somebody to talk to a mortgage
broker about. But if they have a significant amount of money,
uh, in terms of profit share that they could use as a deposit for the construction line
on the granny flat, then there’s a good chance that they could probably get that over the
line. So if you can’t get lending for your next
property when you’re talking to your mortgage broker, talk to them about getting a loan
for a granny flat. So generally that’s probably going to be a
construction line and talk about how much of a deposit you need, whether you could get
lending for that. But then it might also be useful to go through
the scenario of, okay, let’s say that we built this granny flat. Let’s say that we have x amount of rental
income coming in from this granny flat, how does that then affect our borrowing capacity
and would that allow us to jump into another property quicker or would they actually hold
us back? So if you have a good mortgage broker, they
could go through this with you. Obviously you don’t want to mortgage brokers
and who knows? This may change with the findings of the Royal
Commission that just happened, but this may change. But mortgage brokers and they get paid when
they actually provide you with alone. And so you don’t want to be super annoying
to your mortgage broker, but if you’re an honest and up front person, you’re trying
to get loans, then they should be able to help you run through these scenarios and work
out what’s going to be best for you. So yeah, looking into building that granny
flat, we could have been a good option for this person. Even if they can’t, let’s say it doesn’t help
them be able to borrow. Let’s say they’re in a position where they
go back, they talked to the mortgage broker, they run through the scenarios of whether
or not they can borrow and they could do a granny flat, but that won’t help them move
into a second property in might actually be worth doing the granny flat anyway because
you’re going to get the rental yield from that property. So that’s going to give you more of a buffer
in terms of rental income and in terms of cashflow that might push your property into
being positive cashflow or it could just help your life in general because you’ve got extra
money coming in on top of the expenses of owning that property. And so that just could help your overall financial
situation allow you to pay off debt quicker, allow you to save a deposit faster as you
move towards being able to buy your next property. Yeah, or it could just help you pay off debt. So even if they can’t move forward into the
next property or maybe you can’t move forward into your next property, it might be worth
looking at whether or not it’s worthwhile to build a granny flat because getting a 10
1112 maybe even 15% rental yield and being able to use that to pay off debt and pay off
debt faster could be a really smart thing for you financially. So definitely something to look into if you’re
out there and you own property but you can’t borrow in order to buy again or you don’t
have a deposit in order to go again, obviously you’ll still need a bit of a deposit to build
the granny flat and get the construction loan for that. So you will need some money to put down for
that. But yeah, definitely something, something
to consider. But that was a really good conversation and
that happened just over 10 minutes. As we were both drinking a couple of beers,
we ended up being at the same venue and that person recognize me. So if that’s you and you recognize me and
you want to come and say hi, please do, I love meeting you and maybe it’ll lead to more
videos like this where we can share our knowledge with everyone out there and you can learn
from that situation. Now obviously I’m going to respect everyone’s
privacy and as you can see, I didn’t talk about any figures or mention the person’s
name. If you are okay with me mentioning your name
and stuff like that, then obviously you can let me know, but I just felt like this was
a really interesting circumstance that even through the conversation with this person
I learnt something like, I know these things, but then you have the conversation and you
realize, okay, this person hasn’t thought about this and other people maybe haven’t
thought about that. So I learned about stuff just having the conversations
as well and I’m really grateful that so many of you out there are enjoying the content
at getting something out of it and a moving towards financial freedom as a result of the
stuff that you’ve heard and listened to on this channel. So super grateful for, you know, anyone that
comes and says hello, I’m sure in Sydney I’m going to meet a whole bunch of you. And maybe in future we’ll do a meetup or something
as well where we can come and hang out. So it’d be a property meetup where it’s not
about trying to sell you something, you know, like a lot of them are and it’ll just be one
full of chilled people who, uh, you know, just on their way to financial freedom who
have the same goals and have the same interests. And so rather than it being some sleazy property
Meta us, I’ve been to some sleazy property meet ups and I absolutely hate them. Rather than that, it could be a call meetup
where we just hanging out and just have a good time, have some beers or drink some coffee
depending on when we do it. So yeah, if you’re interested in doing a meetup
in Sydney, I’m in the Sutherland Shire, so I’m in Granola, so probably be around here
somewhere or we could do it in the city in Sydney. If you’re interested in something like that. And you’re in Sydney. Please leave a comment in the description
down below and we could go about making that happen. Thanks so much for tuning in today. Thanks so much to you know who you are for
coming up and having the courage to say, hey, to sit down, to share part of your journey
with me. I really appreciate it. And to everyone else out there, I wish you
the absolute best in your property investment journey and until next time, stay positive.

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