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Exclusive Online Masterclass for ADF Members and Veterans — Transcript

by Integrity Property Investment · 23,077 words · 3,168 segments · language en · Watch on YouTube

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0:00Okay. So, tonight webinar we're going to
0:02talk about buying your own home, buying
0:04investment properties, building
0:05portfolios, DVA comp, a few other
0:07things. All right. Really, really
0:09valuable stuff. I know, of course, of
0:11course you're going to say that, don't
0:12I? But actually is enormously valuable
0:14to you. And if you're smart, you'll get
0:16in the zone and pay attention. This is
0:18the stuff the system should teach you,
0:19but it doesn't. I'm going to teach it to
0:21you. Okay? So, um, I know you've had a
0:24long day. I've had a long day, too, but
0:26I'm here. I'm ready to play. I'm going
0:27to give you everything I've got. What I
0:29ask in return is that you just be
0:30present and listen to what I got to say.
0:32Um, now make sure you got a notepad and
0:34pen. You will regret not taking notes.
0:37Um, they'll be like, "Oh, you'll wake up
0:38tomorrow. You like, oh, what was that
0:39thing he said? That was worth a lot of
0:41money. I got to go look it up." Um, so
0:43make sure you take notes. If you don't
0:44have a notepad and pen, go and just get
0:46some paper out of the printer. You need
0:48about four or five pages of paper um to
0:51take the notes. I'm going to tell you
0:52what I think you should write down.
0:54Okay, legal disclaimer. Unfortunately,
0:55live in a time where I have to put one
0:56of these up, but basically what this
0:58says is that the information is general
0:59in nature, only illustrative,
1:01educational, should not be treated as
1:03specific advice for you and your
1:04situation because everyone's situation
1:06is different. To use a military analogy,
1:09uh consider what I'm going to teach you
1:10tonight as the doctrine and then when
1:12you need to obviously apply the doctrine
1:13to the situation on the ground, whatever
1:15your situation may be. We're also going
1:18to talk about investing. All forms of
1:19investment involve a degree of risk and
1:21potentially losing money. The only
1:23guarantee in investing is that if you do
1:25not invest, you will not make any money.
1:27So, uh we are going to talk about
1:29property investing. Arguably one of the
1:31safest uh and most effective forms of
1:34investment. And I'll make that argument
1:35to you tonight and you'll see it. So, if
1:37you're a bit nervous about investing
1:39residential homes in major capital
1:40cities and major regional centers, you
1:42will have nothing to worry about. And
1:44I've I've written books on it, right?
1:45And I've got the data to prove it. So,
1:48whether you like it or not, you're
1:49playing a game. That game's called the
1:50property game. And in that game, you've
1:51got some cards to play. Now, you're
1:53forced to play this game whether you
1:55like it or not because you need
1:56somewhere to live. So, if you're forced
1:58to play this game, you may as well learn
1:59the rules and play it well. Now, the
2:02rewards of playing this game well is an
2:04early retirement. Okay? Uh passive
2:07income, early retirement, be a
2:09multi-millionaire, live an amazing life,
2:11and see the world and support charities
2:13and provide for provide a great life for
2:15your the people, you know, your kids and
2:16and their kids and things like that. Now
2:18you can have two people side by side,
2:20same rank, same trade, same everything,
2:22okay? Same age and they so they start
2:26they get dealt the same cards. One ends
2:28up a multi-millionaire retiring 10 to 20
2:31years earlier. The other one doesn't.
2:33Why? The difference is very simple. It's
2:35not luck. Thinking that people just got
2:38lucky is a poor man's mindset and it's
2:40disadvantaging you. So stop thinking
2:42that way. Right? It is simply an
2:44application of of learning the knowledge
2:46and then actually taking action on it.
2:48Right? That's the difference. Learning
2:50how to play this game and then taking
2:52action on it. Okay? Now, I've seen this.
2:56I've been doing this for 15 years now.
2:58Right? Your mindset is your biggest
2:59enemy. Your bad attitude is your biggest
3:01enemy. Right? And I'll just give it to
3:03you between the eyes straight up. I see
3:05people like commenting on my Facebook
3:07ads saying, "Oh, this is all
3:09bullshit." Right? But then I've got
3:12clients who have made hundreds of
3:13thousands if not millions of dollars.
3:15Okay? Just and and often only off one or
3:17two properties that we recommended to
3:19them. Okay? So, drop the bloody all that
3:22skepticism and just get in the Okay,
3:25well, I'm just going to listen. I'm
3:26going to listen. Feel free to critically
3:28analyze what I say and ask whatever
3:29questions you want. Um, but just you got
3:32to get you got to put aside all the
3:34skepticism because that skepticism is
3:36the first thing that's going to stop you
3:37from taking action. All right. Now, in
3:39this game, this property game, you've
3:41got cards to play, okay? And uh these
3:44cards are as follows. Some are civilian,
3:45some as ADF only. First homeowners
3:48grant, biggest first homeowners grant in
3:50Australia right now is $50,000. Okay?
3:52That's in the Northern Territory. Uh
3:54stamp duty discounts, home purchase
3:56assistance scheme, Hepsi, HPA,
3:59DOHAS, Dohas lump sum, living in
4:02accommodation, service residence, RA.
4:05Now, all of these things are worth an
4:06incredible amount of money. and also
4:08DVA. We're going to talk about DVA Compo
4:11tonight. Now, DVA Compo is obviously not
4:13a housing entitlement, but the hardest
4:16thing to often the hardest thing when
4:18you want to buy a house is just getting
4:19a deposit together. Now, if you're
4:21trying to chip away by saving a few
4:23hundred bucks a pay to a savings account
4:25and try and get a deposit together, you
4:27are on the slow boat to China, okay?
4:29There's much faster ways to get there
4:31and I'm going to teach them to you
4:32tonight and DVA Compost is one of them.
4:34Now I'm going to talk a little bit about
4:37my DVA compost experience now and then
4:40I'm going to talk about how to get how
4:42to go about your DVA at the end in
4:45detail. All right. Now I served in the
4:47regular army for 14 years from 1996 to
4:502010. Served in East Tour served in
4:53Iraq. I um I was an officer um sorry I
4:58was an officer. I um and um I should
5:02have known all this stuff, right? And I
5:03didn't. Okay. And I I saw people getting
5:06huge lump sums of money from for DVA
5:08Compo, but my perception of them was,
5:10well, these are the people who have been
5:12properly broken. They've been in an
5:13accident. They've had a a vehicle
5:15accident, a parachute accident, or
5:16they've been blown up or wounded in
5:18Afghanistan, Iraq. And um and I thought
5:21that would never be for me. When I trans
5:24decide to transfer to the reserves in
5:272010, I had to go through the discharge
5:30process, right? Because you're leaving
5:31the regular army that so they still put
5:33you through the same discharge process.
5:35Um but you just instead of getting out
5:36all together, you go to the reserve,
5:37right? Um unit do I did the the
5:40transition seminar. Transition seminar
5:42was a joke. Grossly underdone run by
5:46people who at the time I thought didn't
5:48have any success in life themselves. And
5:51these are the people who are trying to
5:52set you up, trying to teach you what you
5:54need to do to be successful in a
5:55civilian life. Um, and all the stuff I'm
5:58going to teach you tonight was
5:59completely absent from the transition
6:00seminar and probably still is. Um, but I
6:04also I went to the med medical
6:06discharge, not medical discharge, my
6:08discharge medical. So I get a bit
6:09dyslexic from time to time, bear with
6:10me. So my discharge medical, the unit
6:13doctor did it. He said, "Damo, you've
6:14got two things here you could probably
6:16claim." And I said, "Oh, okay. What's
6:17that?" And he goes, "Your right foot and
6:19your right shoulder." which I had
6:20injured in the line of duty. And um and
6:23he said, "Yeah, you can put in for
6:25these." So, we'll fill the paperwork
6:26out, put them in, and then um and he
6:29said, "You'll probably get a white card
6:30for that, and then if you have any
6:32medical problems relating to those, you
6:34can just um get your white card from DVA
6:36and use that, and they'll pay for it.
6:37DVA will pay for it." Or I was like,
6:39"Okay, cool. No worries." And I did not
6:41think at all I've been told to earn any
6:43money. Fast forward about nine years
6:46after being out and just sort of being
6:48around the veteran community and things
6:49like and being and constantly being sort
6:51of bad and say, "Oh, D, have you done
6:54your DVA claims yet?" Well, no. I don't
6:55think I'm entitled anything, mate. Don't
6:57assume anything. Go get it checked out.
6:59I went and had it checked out properly.
7:01I didn't have two conditions. I had 14
7:04one four conditions. And um and when I
7:08got it done properly, all 14 conditions
7:10were identified. They were accepted by
7:12DVA and I received a gold card which
7:15means free medical for the rest of my
7:17life for everything, no questions asked.
7:19And I got
7:20$430,000 in compensation for DVA. Now, I
7:24still have all my arms and legs. I've
7:25not been wounded in combat, not had a
7:27parachute accident, not had a serious
7:29vehicle injury, just lots of little
7:31injuries. So, do not think that you
7:34cannot get DVA compost. Make sure I'm
7:37going to show you at the end of the
7:38webinar tonight how you can do it. Even
7:40if you're still serving full-time, if
7:42you're still serving full-time, you
7:44might just want to get some advice
7:45outside of the system. Identify those
7:48claims that you can put in without any
7:49detriment to your ongoing service. If
7:52there's other ones you're concerned
7:53about, you might just leave them and and
7:55wait till you discharge till you do
7:57those. All right. Now, on the screen in
7:59front of you, first question I've got
8:01for you guys, get on the question box,
8:02get ready to answer. Let's say you did
8:0425 years in the permanent in the
8:06full-time defense force. Okay. 25 years.
8:09You joined at 18 and you leave at um
8:12Thanks, Jacob. You join at 18 and you
8:15leave at 43. Okay, 25 years. In that
8:18time, in 25 years full-time, uh with the
8:21exception of DVA Compo, which is the
8:23most valuable entitlement on the screen
8:25in front of you there, which is the most
8:27valuable entitlement? 25 years. Which is
8:30the most valuable entitlement?
8:39Okay. Aoshman says do. Blake says
8:42service residence. William says do house
8:45or RA. Okay. DVA. Do house. Other than
8:49DVA, guys. DVA depends on how how busted
8:52you
8:56get. All right. Okay. Lots of answers
9:00there. All right. I'll tell you the
9:02answer. The answer is actually service
9:04residence or RA. That's the biggest
9:07that's the most valuable. Um, and I'll
9:09give you let's do some basic math. How
9:12much how much less rent do you pay a
9:14week if you're in a service resident or
9:17on RA? How much do you reckon you save a
9:18week? If you had to pay market rent
9:22almost half, right? 50%. Okay. All
9:25right. So, give me a dollar figure. What
9:27do you reckon that is in the average
9:28capital city? How much do you think
9:29you're saving?
9:32maybe 300 bucks. Let's say let's say
9:34rent 600 and you're only paying 300. All
9:37right. 300 times 52
9:40weeks,
9:4215,600 a year times 25 years, that's
9:46390,000 alone at a modest 300, like 600
9:50bucks a week rent, which is pretty
9:51that's like the cheapest locations now.
9:53Okay. So realistically, your service
9:55residence subsidy, subsidized rent
9:57through RA or service residence is
9:59actually worth about half a million over
10:01your career. Okay? If you had to rent on
10:03the open market, you'd be paying that in
10:05full. All right? Uh do house loan is
10:07worth
10:08$346,000 if you use it to maximum
10:10effect. Okay? Do loan 346,000. All
10:14right. And then uh there's probably
10:16about $85,000 worth of um grants and
10:19benefits for your first home. Um, and
10:22then we've got DVA Compo on top there.
10:24So, on the screen in front of you,
10:26there's literally over a million
10:27dollars, okay, of money that you
10:30personally can get um by serving. And by
10:32the way, you don't necessarily have to
10:34do 25 years in the regs because do you
10:38only have to do um you can do it in the
10:41reserves 20 days a year in the reserves.
10:42You just have to do two years longer
10:44than everyone else, right? and uh if you
10:46start in the reserves. So a lot of this
10:49stuff is still like DVA compare still
10:52applicable to the reserves. The um first
10:54time grand stamp duties discounts
10:56civilians get that. So everyone gets
10:57that and the the only permanent stuff is
11:00RA service allowance living in
11:03accommodation and
11:05HPEPS. All right. So a lot of money on
11:08the screen. Now, where the system goes
11:09wrong is it doesn't teach people uh
11:12first of all what the entitlements
11:13actually are and second of all how to
11:15use them. Like if you've never played
11:17cards before, I could give you a deck of
11:18cards and go this is the ace of spades,
11:21this is the king of hearts. But that you
11:23wouldn't know what value each of those
11:25cards are, right? Then but then if I
11:27taught you how to play poker, you would
11:29know the value of the cards. So what I'm
11:31going to do tonight is teach you how to
11:32play property, the property game, poker,
11:35right? and then you'll know how best to
11:36play these cards in that game to get
11:38maximum effect. Okay, so be present
11:40during this presentation. We're going to
11:41cover a few things. Mindset shifts, uh
11:43the property game and your housing
11:45entitlements. Now, for you to understand
11:47how best to use your housing
11:48entitlements, I have to teach you the
11:49property game. For me to teach you how
11:50to win the property game, I got to I got
11:52to shift your mindset on a whole heap of
11:54stuff. Okay? And um now 99% of people
11:57who join the defense force come from the
12:00working class. Okay? Now in the
12:03environment we grow up in we call what
12:06we call generational cycles. Okay. So it
12:08basically says you're a product of the
12:09environment you grew up in. Now the most
12:11commonly understood generational cycle
12:14is the welfare cycle. So we know that if
12:16a child is born into a housing
12:17commission home, mom and dad are on the
12:19doll. We know that that child is
12:21exponentially more likely to end up
12:22becoming that sort of adult themselves.
12:26Right? It also works at the opposite end
12:28of the spectrum. If a child's born into
12:30a wealthy family with successful
12:31parents, those successful wealthy
12:33parents will teach that child the right
12:35behaviors of how to become successful
12:36and wealthy themselves and that child
12:38will do well. Now, in the middle of all
12:41that, you got the working class. Okay?
12:43And um you'll know you are from the
12:45working class if any of the following
12:46sounds familiar to you. Uh study hard at
12:49school and then get a trade or a degree
12:51so that you've got a qualification to
12:53fall back on. Save your money. Save
12:56don't waste your money on on on on
12:59having fun. Save your money. Don't and
13:01rent for the minimum amount of time
13:02because rent money is dead money. And
13:04get into your own home as soon as get
13:06into the market as soon as you possibly
13:07can. Buy your own home first. Pay it off
13:09as fast as you can. Put extra bit of
13:12money onto your loan and pay it off as
13:14fast as you can. Your home is your
13:16greatest asset. Um and money won't make
13:19you happy. Um money is the root of all
13:21evil. Any of those things sound
13:22familiar? then you probably grew up in
13:24the working class right now. Um, so let
13:27me ask the next question I want to ask
13:28you guys is what what did you grow up
13:31in? What what how would you describe the
13:34did you grow up in your housing
13:36commission, working class, a wealthy
13:39family, farming, um, you know, overseas?
13:42What did you grow up in? You can't
13:44choose the circumstances you're born
13:45into, but you can choose the
13:47circumstances you remain in, right, as
13:49you become an adult. Okay. So, um, and
13:52I'm very proud of my working-class roots
13:54and I'm very proud of what I've
13:55achieved, um, despite the despite the
13:58odds, you might say. All right. We're
14:00also going to talk about DVA claims and,
14:03uh, then I'll show you how to get more
14:04help at the end. All right. Okay. First
14:07exercise. So, you've just come into
14:10$150,000. You've inherited it maybe from
14:13a relative or you won the lotto,
14:14whatever. Okay. What would you do with
14:16that money? Now, I want you to answer
14:18this question. Okay, what would you do
14:20with that money? Would you put in a
14:22savings account? Would you put on the
14:23share market? Would you buy one property
14:25with a 20% deposit, 80% loan? Or would
14:28you buy two properties with the minimum
14:30deposit, say 5% and maximum lending?
14:33What would you do? So, we're going to do
14:34some analysis now and see what we could
14:36do.
14:37Right. All right. Let's put in savings
14:40account.
14:41Now, to get 3% on your savings, you have
14:44to earn 4.5% interest. Okay? Because
14:47why? Because when you do your tax every
14:49year, you have to declare the interest
14:51you earn from savings, and that's
14:52taxable income. So, the tax man is going
14:54to take a third of it. So, just remember
14:56that whatever interest rate you're
14:57looking at for your savings, you're
14:58actually only getting 2/3 of that rate.
15:01But let's say we uh if we add um 3% to
15:04that, where does it end up? All right,
15:06one year. There we
15:09go. All right, 200 grand. Whoopdedoo. If
15:12you've got money in a savings account,
15:13for God's sake, do something with it.
15:15Get it out of there. get it invested
15:16properly because you're not even keeping
15:18pace with inflation. Inflation is
15:20controlled in this country about 2 to
15:223%. So, you know, the cost of milk, the
15:25cost of bread, all that sort of stuff.
15:26And they do that by putting the the
15:28interest rate up and down on mortgages,
15:29which controls the spending and keeps
15:32the economy stable, right? But you're
15:34not getting anywhere in savings account.
15:35So, do make sure that you do something
15:37with it. All right. Well done for being
15:39a good saver and having the discipline
15:40to save. That's important. However, you
15:43must invest that money, not just let it
15:45sit there and saves you. All right,
15:48shares 7% peranom on shares. The uh
15:51that's the historical average for the
15:53some people say 8% but they there's a
15:56rule the 710 rule which says that if you
15:58increase something by 7% you will double
16:00it in 10 years and there's the proof
16:02there. Right? So end up with 300 grand
16:05whooped. Draw your current salary from
16:06that. How many years until that runs
16:08out? All right. Now, the shares if
16:10you're into shares, okay, that's fine.
16:14But, um, just understand that there's
16:16it's shares unless you're an early
16:19investor like on Shark Tank where some
16:21budding entrepreneurs invented
16:23something, they come to you and they go,
16:24"Hey, I'll I'll give you 10% of my
16:26company for 100 grand, you know, because
16:29I need the capital to kick the business
16:30off, you know." But if you're coming in
16:32just your financial advisor told you to
16:34go and buy these shares, then you're
16:37looking at 7% peranom best. You know,
16:40maybe one year you'll do a bit better
16:42than the next year you have it. All
16:44right. House prices. Mr. Churchill said,
16:46"I can see far in the future because
16:47I've stayed the past." And I can say
16:49that at least as far as Australian house
16:51prices go because I wrote that book
16:52there, the housing bubble myth in in
16:55concert with my wonderful supporting act
16:57Nicole Stein um who does a lot of
17:00research and writing uh on my
17:03behalf. Now the uh what we did what I
17:06said to Nicole is I said look I like
17:08data Nicole. Let's have a look. Let's go
17:10find out what the median house price was
17:13in every capital city in Australia. And
17:16I I saw an article in the magazine,
17:18baby, about 10 years ago where they did
17:20it. I thought they only did it for the
17:21four of them. And I said, let's do the
17:23whole show. Let's do the eight capital
17:24cities. And what I want is I want a
17:26table that has like 1970 till
17:292023. And I want the median house price.
17:32And then the next column, I want the
17:33percentage change. So we did, we
17:35created, right? And what we found out is
17:38that the median house price, okay, now
17:39just be aware the top of the market is
17:42like the mansions, they're very volatile
17:44in price. middle of the market rock
17:46solid. Okay. And bottom of the market's
17:48rock solid as well in terms of stability
17:50of price point. But um what I can tell
17:52you because I've actually done this done
17:54I've got the data and if you become a
17:55client of mine, you'll get this book for
17:57free. But um is that house prices always
18:00go up. Okay? There's only but one year
18:03in 10 will they go down. And if they go
18:05down, they'll only go down by a single
18:07digit percentage. 1 2 3% or something
18:09like that. In the history from 1970
18:11onwards, uh there's only been one year
18:14in one city where house prices have
18:16dropped by more than 10%. And that was
18:18in Adelaide in 1992. And the previous
18:22year, 1991, house prices went up, oh,
18:25sorry, that year, 1992, they went down
18:26by 17%. Right? But the previous year in
18:30Adelaide, they went up 34%. So they went
18:33up 34% and they come halfway back. I'd
18:35still be pretty happy with that. Outside
18:37of that, single digits, one in 10 years.
18:41Nine out of 10 years going up. Okay.
18:45Safest houses was the name of my first
18:46book. That's why I called it that
18:48because it's the safest form of
18:49investing because the prices are so
18:51stable. All right. And then we're seeing
18:53there you got these um these green
18:55boxes. That's where the price increased
18:57more than 10%. And that's where you've
18:59got the property booms occurring through
19:01each city. Okay? So you can see when the
19:03booms have occurred. Now, the other
19:05reason why I wrote this book and the
19:07reason why I called it the housing
19:08bubble myth is because the housing
19:10bubble is a myth, right? People say,
19:12"Oh, the housing bubble that's going to
19:14burst. It's all that." The media love
19:16rolling that headline out in order to
19:18scare the pants off you to get you to
19:19watch that that segment on TV or to buy
19:23that newspaper. And I'll give you a
19:25perfect example. Right? So, in this in
19:27this book, we've then got a series of
19:29articles that we found from the
19:31archives. The earliest one being 1981 I
19:34think and uh the 1981 article um the
19:39golden oh 1982 the golden bubble it
19:42talked about so even back in 1982 they
19:44were banging all of it but the um the
19:47article I want to share with you is this
19:49one here okay which is this is the cur
19:53major newspaper in Australia in 2014
19:55they published this article demographer
19:58Harry Dent predicts Australian real
19:59estate market bubble to burst and prices
20:02to drop 50%. So that was in February uh
20:05February 5th
20:082014. Okay. So let's go to the table and
20:11see what happened. Kira Males of
20:13Brisbane paper. So let's go to Brisbane
20:16in 2014 and see what it says. Brisbane
20:18the median house price in 2014 was 5
20:23459,000. Now Harry Dent predicted it
20:26would drop 50%. So, I'll read you the
20:28subsequent year prices.
20:42465,495,518,532,538,547,630,775,000.
20:43Right? Harry D's a but he's got a
20:47qualification as a demographer, right?
20:50And he gets on TV because of it, and
20:53they pay him to be there, but he's an
20:54idiot, right? and the and the data
20:56doesn't support it. So when people say
20:58house prices is double in value every 10
21:00years, I can tell you that's not
21:02actually true because the historical
21:04average is greater than double every 10
21:06years, but there has been some 10ear
21:08periods where it comes up to about it
21:10just falls a bit short. So it increased
21:12by 80%, not 100%. Right? But it's hard
21:15to believe you could buy a house in
21:16Brisbane in 1970 for 8 half grand, but
21:18you could. And if you bought that
21:19property, it would quadrupled in value
21:21in the next 10 years from 1970 1980. And
21:24then if house prices had just
21:26quadrupled, you would tell me that's a
21:28bubble. Dammo, in 10 years, house prices
21:30quadrupled. That's definitely a bubble.
21:32Guess what happened? Then they tripled
21:33the following 10 years, right? And then
21:35in the 90s with the recession we had to
21:37have, house prices still went up. Okay?
21:40They still went up and uh they went up
21:42even in difficult in the worst times,
21:45they went up by 80%. All right? And then
21:48the 2000200. So to use a military term,
21:51house prices doubling in value every 10
21:53years is a sound planning assumption.
21:55Okay? So it's either going to come very
21:57close or it's going to far exceed that.
21:59All right. All right. So then let's look
22:01at the housing options. Remember we
22:03inherited 150 grand and we wanted to
22:05invest it. A lot of you said you'd do
22:06this by um 80% loan. Now the most
22:09expensive property you could buy with an
22:1180% loan would be 600,000 because we
22:13need 20% deposit. So that chews up 120
22:17grand and then we need to leave some
22:18left over for stamp duty, legal fees,
22:20etc. costs. Okay, rent that property out
22:23for 600 bucks a week. Now, why on earth
22:25would we do that? Well, here's why.
22:26Because in 10 years time, the property's
22:28going to double in value. And the and
22:31the worst case scenario for the debt is
22:33that it's interest only the whole time.
22:35So now we've got
22:37$720,000. Now, you want to watch these
22:39buddy financial advisers because they'll
22:41tell you, don't buy property, buy
22:43shares. you know, property and shares
22:45performs at the same rate. It doubles
22:47every 10 years. But with shares, it's
22:49liquid. You can sell them. You can cash
22:51in, cash out, you know, and you don't
22:53have to worry about bad tenants and
22:55stuff like that. Now, they're bastards
22:58because one thing they don't tell you is
23:00they don't tell you that when you buy a
23:02property, you don't pay cash for it.
23:04See, when you buy a property, we borrow
23:06money from the bank. And instead of
23:07buying 150 grand worth of shares, we
23:09bought 600 grand worth of property. And
23:11when 150 grand worth of shares doubled
23:13in value, it became 300 grand. But when
23:15the 600 grand worth of property doubles
23:17in value, it becomes 1.2 million. And
23:19yes, we've got some debt to do it, but
23:21we get to keep all the capital growth.
23:23We don't have to share any of that with
23:24the bank, right? Not only that, now the
23:27rent is also doubled in value, and we've
23:28got a guaranteed passive income coming
23:30in because 1,200 bucks a week is more
23:32than enough to cover a
23:34$480,000 mortgage. Right? And this is
23:37the point. Now, this is called leverage.
23:39Leverage is the secret. If you want to
23:40get ahead financially, if you're sick of
23:43buddy spinning your wheels and grinding
23:44it out, okay, you need to go and embrace
23:47good debt, which we'll talk about, um,
23:49as your friend, which is going to help
23:51you to invest and to get the return
23:53you're after. Now, here's the
23:56interesting thing as well. 150 grand
23:58turned into 720. So, 150 grand if you
24:02double it, that's that's 300. Quadruple
24:05it is 600. It's almost five times. We've
24:09almost got 500% return on our money,
24:12right? 500% return on our money. When we
24:14put in the share market, we only double.
24:16We only got 200%. Right? You see the
24:18difference? It's huge. Now, apply this
24:21principle to the theoretically greatest
24:23degree, which is two properties, right?
24:26And now, the reason why most people say
24:28don't borrow more than 80% is because
24:29you'll pay mortgage insurance if you do.
24:32Now, I say embrace mortgage insurance as
24:35your friend. It's not your enemy. It's
24:37your friend because it allows you to buy
24:39two properties, not one. We don't get
24:40rich by paying offered property. We get
24:42rich by getting more properties that all
24:44go up in value for us. Right? So, we get
24:46two properties, 5% deposits. You see the
24:49loans are bigger. In the previous
24:50example, the loan was 480. In this
24:52example, the loans 570. Why on earth
24:55would we do that, right? Pay the
24:56mortgage insurance, two lots of cost.
24:58This is why. 10 years later, 1.2 million
25:01a piece. 630 equity in that one. 630
25:04equity in that one. $1.26 million. Now,
25:07remember I said at the start, you can
25:08have two people, same rank, same trade,
25:10same everything. One person's got an
25:12education in how to do this stuff and
25:14the other person doesn't. What person
25:16with the education takes action becomes
25:18a multi-millionaire. The person who
25:20doesn't, the person who's got their arms
25:22folded going, "This sounds too good to
25:23be true. Everything's a scam. Don't
25:26trust anyone. Don't, you know, that
25:28person's going to stay broke." Okay? And
25:30the person who actually goes, "You know
25:32what? other people are doing it so I can
25:34do it too. I'm going to get educated.
25:36I'm going to get a good team around me
25:37and I'm going to have a crack. That
25:39person does well. All right. The key
25:41point here that I just want to make to
25:43you is this power of leverage. Okay. The
25:45power of leverage and using the bank's
25:47money. Also known as getting high on
25:50opium, OPM, other people's money, the
25:53bank's money. Right now, the reality is
25:56that if you don't have any money or you
25:58got minimal money, you need you're not
25:59going to get there with your own money.
26:01All right? you need to invest other
26:03people's money. Now, if you're going to
26:04invest hundreds of thousands, millions
26:06of dollars of the bank's money, would
26:09you put it anywhere other than property?
26:11You'd be mad, right? And and the bank
26:14won't let you anyway. Now, think, ponder
26:16this. Why would the bank lend you up to
26:1895% of a property's pro of a property,
26:21but only lend you 30% of a of a share
26:24portfolio? Why would a bank not lend you
26:26any money for a business? Okay, people
26:29go, "That's wrong. I got I borrowed
26:30money for I got money for a business.
26:32No, you didn't. You got money against
26:34your house for the business. You got
26:35money against your house for the shares.
26:37See, the banks love lending money
26:39against real estate. Why? Because it's
26:41stable,
26:43right? It's stable and it's historically
26:46proven to be stable. So that's why,
26:48right? And um so if you if you feel like
26:50you need to be doing something, keep
26:52paying because this is what it's about.
26:54All right. If you're a fan of shares, I
26:57want you to I'm going to challenge you
26:58on these two things. The pro the two
27:00problems with shares the first problem
27:02with shares is they're not leveraged
27:03enough. You can only go to 30% whereas
27:06property we can go 90 95 right the
27:08second problem with shares is the
27:09dividends are not guaranteed. So if the
27:12um if the companies are having if that
27:14you're living off the dividends is
27:15that's your passive income then there's
27:17a tough like a global financial crisis
27:19or something the companies will cut your
27:20dividends which because they want to
27:22keep the money in the company to try and
27:23survive right it sucks is that if that's
27:25your source of income real estate the
27:28dividends are guaranteed right and
27:30there's even little courts in every
27:31state where they take your tenant to
27:33court and make them pay their rent right
27:35and then then the sheriff the police
27:37will actually come the sheriff will
27:39actually come and throw them out of the
27:40house once you've got once they're
27:41evicted, actually throw them out, right?
27:44No one's going to come and throw the
27:46bloody CEO of Westpak out if they don't
27:48pay your share
27:49dividends. All
27:52right. Okay. So, I'm going to tell you a
27:54little bit more about my story and the
27:55lessons from my experience. Okay. So, I
27:57I um grew up in the western suburbs of
27:59Sydney. I thought about that. I'm
28:00actually the fourth generation of my
28:02family to serve in the army. Um I um my
28:05grandfather's in the lighthouse in World
28:06War I. My grandfather, so my
28:08great-grandfather, my grandfather's in
28:10the eighth battalion in World War II,
28:11was in the bombing of Darwin, fought the
28:13Japanese in um in New Guinea and
28:16Bogenville. Um my father's Vietnam
28:18veteran. I went to East on Iraq and my
28:20son is actually in the army now. But um
28:22if you find him, thank him a hard time.
28:24He's his own man and leave him alone.
28:26He's a good he's a good young lad. But
28:28anyway, so very the P is a very proud
28:30proud service in the army. But when I
28:32was about one year old, um, dad got
28:34posted to Morbank next to Holsworthy.
28:38Most of it's been demolished now, but
28:39um, and mom and dad decided to build a
28:41house out in Campbell Town, which in
28:42that in the late '7s was a new area.
28:45And, um, and everything was going fine
28:47in Campbell Town until they built the
28:48three housing commission estates, and
28:50that just kind of, you know, set the
28:52tone for the the socioeconomic system
28:55there. But um when I was then about a
28:58year later, mom and dad got divorced and
29:00I grew up in mom with a single mom and
29:03four kids. It was very different back
29:04then. Charlesport wasn't really a thing.
29:06Dad stayed in the army and mom tried to
29:09raise the four of us kids on our own. So
29:11I know what it's like to be dirt poor. I
29:13know what it's like to come home and
29:15there'd be no food in the fridge and and
29:16no uh no food in the cupboard. You know,
29:18we used to get like butter and sugar and
29:21mix it in a cup because that was like a
29:23delicacy. You know, they try it. It's
29:25quite nice. But anyway, um but you know,
29:27we some nights we had pancakes. We like
29:29how I could tell you all the how poor
29:30stories we were. But um but I I remember
29:33being very motivated to get out of that
29:34situation when I became an adult myself.
29:36I left home when I was 16. I became a
29:38landscape laborer. I stayed in school uh
29:41and I worked my weekends and school
29:43holidays um digging holes and moving
29:45heavy things from A to B. By the time I
29:47got to the army, I could dig a slit
29:49trench, no worries at all, because I'd
29:50already dug many of them, big long
29:52trenches as a landscape labor. the um
29:56what I know what hard work is, right?
29:58And one thing I noticed and I'm doing
30:00what I do now, I just love helping
30:02people who have a similar background to
30:04me to be successful because I get it.
30:07Like I understand the mindsets and one
30:09of the things that you get taught, this
30:11is the first thing um I want you to
30:13write down. Um is to work smart not
30:17hard. So you know when you go up in the
30:19working class you get told work hard and
30:21you'll be successful. It's
30:23team. If you work hard your whole life,
30:25okay, you're just going to end up broken
30:28and broke, okay? You're probably, you
30:30know, work long hours at work to get
30:32ahead, you're going to sacrifice your
30:33family, you're going to sacrifice your
30:35health, okay? Um, you know, if you if
30:37you work hard working a physically
30:39demanding job your whole life, your
30:41body's going to be broken. You know, if
30:42you're working a stressful job your
30:44whole life, you're going you're me
30:45you're mentally going to break. Okay?
30:47And um the problem is in the working
30:49class, we celebrate and applaud our hard
30:52workers. You know, we got a big day of
30:53work tomorrow. Lots to get done. Jonno's
30:55at work. Everyone's happy because
30:57Jonno's fit as a Mali bull and goes all
30:59day. At the end of the day, they go,
31:01"Well done, Jonno. So glad you're here
31:02today, mate. It would have taken us much
31:04much more time." And then if you're
31:06Jonno, you feel good. You're like, "Oh,
31:07you like the praise." But guess what?
31:08Jonno is not getting paid any more money
31:10for working hard. Okay. And that and
31:12that's the sad reality. Now, when I was
31:14landscape labor in 9495, which was when
31:17I was in year 11 and 12, um I got $50 a
31:20day. Fast forward $50, right, for the
31:25whole day. Fast forward to 2009. In 2009
31:28was my last year in the regular army. I
31:30was a battery commander of 103rd battery
31:33in Darwin, part of 812 regiment. Um I
31:35was on 90 grand plus service allowance,
31:37call it 100 grand. My MS was on 60 grand
31:40a year for her civy job. So we made 160
31:43grand a year, right? Maybe plus maybe
31:45170 when you include the super annuation
31:47and stuff like that, right? Meanwhile,
31:50so Oh, how many now? What did we have to
31:52do to earn that 170 grand? Well, I did
31:55300 days of 365 that year because I was
31:58out bush for six months with it. Um, she
32:01would have worked 250 days of the year.
32:03So for 550 days of labor, we received
32:07$170,000.
32:08Meanwhile, the property portfolio went
32:10up
32:11$260,000 in capital growth.
32:14$260,000. And I reckon we would have
32:16done no more than a day's work to put
32:19ourselves in a position to make that
32:20happen. Now, you tell me what's working
32:22hard and what's working smart. Do you
32:24want to work 550 days of your labor
32:28between you and your partner to get 170
32:30grand of salary? or do you want to do
32:32like about one day's total worth of work
32:34to get yourself in a position where you
32:36got a couple of properties that will
32:37make more than that for you? And and
32:40this is the point. This is the point.
32:42The point is team that there are hard
32:44ways to make money and there easy ways
32:45to make money. And it is and it's not
32:48you don't have to be lucky. You just got
32:50to get the education and take action on
32:52it. Right. Now, my escape cameltown plan
32:54was to join the army and I was actually
32:56lucky enough to get direct entry done
32:58which is quite rare. So I'm asking to
33:00done train on the 8th of July 1996. My
33:03regimen number is 2810571. My PM keys
33:05number is
33:068257117. If you're fast enough to write
33:08that down, you can look me up tomorrow.
33:09You'll see that I'm still in the system,
33:11but I'm in inactive reser. And I just
33:13want to stress I'm not talking to you in
33:15any way, shape, or form representing the
33:17defense force tonight at all. I'm
33:19representing the my private company that
33:21I started called Integrity Property
33:22Investment. Now that company was started
33:2415 years ago, currently has about 35
33:27staff including a lot of veterans. Um,
33:29my three senior consultants in the
33:31company are all veterans. One's ex Navy,
33:33one's ex Army, and one's ex British
33:35Army. And we've got a few more in there
33:37as well. Plus a whole um team of
33:40everything you need. One-stop shop for
33:42property, we do it right. Um, but
33:44anyway, back to Dunin. Graduated
33:46December 97, got allocated to the
33:48artillery and so I was an artillery
33:50officer. Okay. And I got deployed to
33:52East Team. first deployment was uh east
33:54team were 57 area 2002 2003 before they
33:58split it and I hear they formed it put
34:00it back together again but um and when I
34:03got back from te-our I had 160 grand in
34:06the bank and I was debtree okay now a
34:08lot of you might you know might be
34:10finally cleared some bad debts you got
34:11some cash in the bank and you're looking
34:12what to do you're in the right place all
34:14right now the next thing to write down
34:16is that quote there okay so so far you
34:18should have work smart not hard okay
34:20work smart not hard and the next is a
34:22full loans from their own mistakes. A
34:24wise man learns from mistakes of others.
34:26And if you're wise, don't if you if you
34:28go, I want to learn my I want to make my
34:30own mistakes and learn from them. Don't
34:32tell me what to do. Right? Stop. Bad
34:34attitude. You know, usually that's a
34:36teenager's attitude when they're
34:37rebelling against their parents. But as
34:40an adult, it's a really dumb way to live
34:41your life. Okay? Doesn't matter what you
34:43want to do, someone's already done it.
34:45And the smartest way to learn how to do
34:47it is just learn from them. And property
34:50is a very inex very expensive teacher if
34:53you don't know what you're doing. Okay?
34:55So you must you must make sure that
34:56you've got that support around you and
34:58get it done. Anyway, this is the first
35:00property we bought. Number 50 Street and
35:02Parade, Evident Park. Okay? The reason
35:05why there's a number six on there is
35:06because I'm now going to teach to remind
35:08me to tell you the six biggest mist the
35:11six big mistakes. So, the next thing to
35:13write down is the six big mistakes and
35:15then make a list one to six underneath
35:17and get ready to fill them in as we go.
35:19Now, bottom line up front, know this.
35:22Nine times out of 10, it's a mistake to
35:24buy your own home first. Nine times out
35:26of 10. And I'll tell you why. Because
35:29nine times out of 10, you do not live in
35:31the number one booming location in the
35:33country. You do not. Now, every time,
35:36write this down. Every time you buy a
35:38property, you have a opportunity to make
35:41hundreds of thousands of dollars. Every
35:43time you buy a property, you have an
35:44opportunity to make hundreds of
35:46thousands of dollars if you get one
35:48thing right. And that is that the
35:50property is in a booming location, not
35:52necessarily where you need to live. Now,
35:55people say, "Oh, you know, we're going
35:56to talk about where the rent money is
35:57dead money in a minute." All right? But
35:59the poor teach their kids rent money is
36:01dead money. Buy your own home as fast as
36:03possible. Pay it off as quick as you
36:04can. And guess what? Where does that get
36:06them? They're all they stay poor. And
36:09I'm going to show you I'm going to show
36:10you the numbers and show you the
36:11different courses of action and show you
36:13why. Very simple to understand. All
36:15right. So, mistake number one is wrong
36:17city. So, I was posted to Darwin and
36:21then I got a got back from uh East
36:23Teeour in middle of 2003. Got a posting
36:27order. You're going to Brisbane January
36:292004. So, we're right when we get to
36:31Bri, we're buying a house. So we we
36:34bought a house and you know both sides
36:36of the family were saying buy your own
36:37home, buy a house in Brisbane and most
36:39of our family lived in Brisbane and they
36:41were saying by this stage a lot of my
36:42family moved from Sydney to Brisbane and
36:45um they said you know when you get
36:46posted away we'll look after it for you
36:48and so okay no worries. So then um so
36:51that's what we did, right? And we got a
36:54$7,000 first homeowners grant back then.
36:56It's a lot more now. 30,000 in
36:57Queensland now, but um and we, you know,
37:00went and did the whole thing. Uh we got
37:02the the Westpak loan. Was it the West?
37:05No, the the NAB loan, which was before
37:07Dhouse, it was an $80,000 loan. We got
37:09that. We did the whole the whole thing.
37:11Right now, um problem with this is as
37:15follows. In 2004, Brisbane was precisely
37:18the wrong place to buy a property
37:20because in 2004, Brisbane house prices
37:22had just been through a boom and in the
37:24previous five years, house prices had
37:26doubled and had gone quiet. Okay? So, we
37:29bought at the end of the boom, not at
37:30the start of the boom. So, let's just
37:31talk about booms. What you need to
37:33understand is that house prices just
37:35don't keep going up all the time. That
37:37goes in waves, right? And it's all about
37:40supply and demand. Now, listen carefully
37:42what I'm about to teach you because once
37:43you understand this, you'll be really
37:45good at picking hot spots, right? So,
37:48why would the price of something go up?
37:50Let's say you've got 10 people who want
37:52to buy something, but there's only five
37:54somethings for them to buy. So, five of
37:57them are going to get it and five are
37:58going to miss out. What are they
37:59naturally going to do? They're going to
38:01offer more money to get it, right? And
38:03the person who's got the who can who's
38:04prepared to pay the most is going to
38:05secure the commodity that they want.
38:07Now, this works for property. That works
38:10for every all commodities, iron ore,
38:12gas, coal, bananas, whatever. Okay? When
38:15demand is equal to supply, prices stay
38:17the same because everyone's happy.
38:19There's enough supply to give everyone
38:20what they want. No competition. So
38:22therefore, prices stay the same. Then
38:25something will happen that will trigger
38:26demand and demand will be greater than
38:28supply. When demand is greater than
38:30supply, and in the property context,
38:32that's number of houses for sale versus
38:34number of buyers who need somewhere to
38:36live. And it works the same in rent.
38:37number of houses for rent versus number
38:39of renters. They will start out bidding
38:41each other. You see it, they call it a
38:42rental auction, you know, where the
38:44renters, they're all out to the open
38:45home, there's 50 people who want to rent
38:47the house and so they start on the lease
38:50application, they offer the hundred
38:51bucks a week more to secure it, right?
38:53And so it works the same way, but that's
38:55what triggers a boom. Now, with house
38:58prices, booms go for about three to five
39:00years. And the reason, and I've proven
39:03that with the data, right? But the
39:04reason for that is once our house prices
39:07start booming, the people who make
39:08housing, which is the government
39:10reszoning the land, the land developers
39:12who come in and chop buy that land, chop
39:14it up into into a housing estate. And
39:16then the builders that build the houses
39:18on it, they ramp up their own
39:20production, right? They go, "Right,
39:21we've got we got a bloody housing
39:23crisis. We need to increase release more
39:25land." And away they go. Right? By the
39:28time from releasing the land to a
39:29completed house coming on the market,
39:31that whole sequence, right, takes about
39:34three to five years because the land
39:36developers take a year or two just to
39:39get in, buy the site, turn it into
39:41streets and blocks of land, etc., etc.
39:43So then what happens? So you have this 3
39:45to 5 year period where demand's greater
39:46than the supply. So prices just keep
39:48going up and then the supply increases
39:50because the production's been increased
39:52and it comes on the market. Then it
39:54equals out again. Then you got the peak
39:56of the market. So you have a flat, a
39:58boom and a peak. And at the peak you
40:00then get a slight over supply and that's
40:02where the prices will come down just
40:04that small amount about 5%. Now the
40:07reason for that is because there's more
40:08as soon as the prices stop going up and
40:10start coming down whoever the they will
40:12stop releasing more land they'll hold
40:15back on production and then that will
40:16reduce supply back to equaling demand
40:18and it goes flat again. Okay. Now why is
40:21that important? Because we want to learn
40:22how to hot spot. So we need to work out
40:26where we can buy um where there's going
40:28to be more demand for property right now
40:31at a national level all the cities they
40:33move at different stages right and
40:35usually led by Sydney and Melbourne and
40:37then it gets too expensive there so
40:38people move to Brisbane then they move
40:39to Perth and then you know there's
40:41actually an organic trend um that gives
40:44evidence of that in the uh in the charts
40:46and you can see it you know um if you
40:49analyze the charts but then there's more
40:51tactical things that change it as well.
40:53All right. So, mistake number one is
40:55wrong city. We bought in Brisbane when
40:57we should have brought in Perth. Now,
40:58listen carefully. This is what we should
41:00have done. We should have stayed in a
41:02bloody Mar quarter, which was cheap as
41:04chips rent. I think it was about 150
41:06bucks a pay back then or something. It
41:07was or maybe maybe it was 300 a pay 300
41:10to 450 a week. What we should have done
41:13is stay in the mar and bought an
41:14investment property in Perth because had
41:16we bought an investment property in
41:17Perth in 2004, four to five years later
41:20would have been worth 300 grand more.
41:21Okay. Now, this is what you call an
41:23opportunity cost. It's And so, next to
41:25wrong city, I want you to write minus
41:27$300,000. Just to remind you of what
41:30that means. It's opportunity cost. It's
41:31because you went left when you should
41:32have gone right. Cuz you bet on black
41:34when you should have bled on red. Okay?
41:36Because you bought your house, you're
41:37using your poor man's mindset, your
41:39working-class mindset, and go buy my own
41:41home first when you shouldn't have done.
41:43You should have stayed in the rental and
41:44bought an investment property first.
41:46Okay? Now, if you came to this webinar
41:47tonight with the intention of buying
41:48your own home that you might be right,
41:51you might be wrong, but pay attention.
41:52By the end of the webinar, you'll know
41:54whether you need to stick to that
41:55decision or switch. All right? Just have
41:58an open mind. Yeah. All right. Mistake
42:00uh number two is wrong suburb. So, once
42:02you've worked out which city is birming,
42:04then you then all the suburbs in that
42:06city will be going up in value, but some
42:08suburbs will do better than others
42:10because of local technical factors on
42:12the ground. Now, thinking back to supply
42:14and demand, what could they be doing in
42:16an area that would all of a sudden
42:18attract more people to want to live in
42:20that area? Think infrastructure, what
42:22could they build in a suburb that will
42:24make that suburb more popular and all of
42:26a sudden a heap of people will want to
42:28live in will live there. Okay, so
42:30there's job creation and then there's
42:32amenities. So, if someone now job
42:34creation is an interesting one, job
42:36creation doesn't have to be pretty. It
42:37just has to bring people into the area.
42:39So someone might build a big warehouse
42:41or big factory that's got 500 jobs in
42:43it. Doesn't look pretty, but that's 500
42:45people that need somewhere to live. And
42:46economics doesn't know pretty. Economics
42:48just knows supply and demand. So what we
42:51do at Integrity Property is we always
42:54looking for job creation um and
42:56infrastructure projects. And we know so
42:58pick the city first and then we go in
43:00there and we we find out where the
43:01infrastructure is. We put the clients in
43:03there, right? And that's how they make a
43:06lot of money, right? So just give you an
43:08example um about four or five years ago
43:12I heard there was a school in um that I
43:15won't say where it is I'll keep that
43:17secret I'll tell you become a client
43:18I'll tell you um so there was a school
43:20that had been voted Australia's number
43:22one high school number one public high
43:24school right so I thought I thought what
43:25does that mean for property well it
43:26means that if you live in the catchment
43:28you get to send your kids to the best
43:30public school in the country I said so
43:32people are going to want to move into
43:33the catchment of that school now in
43:35order to send their kids there person.
43:37Then I saw the next suburb over there
43:39was a um a logistics uh what they call
43:41logistics estate like an industrial
43:43estate that was being doubled in size.
43:45The council had there's a big um nature
43:47reserve next to it. Council had resoneed
43:49that so that they could double the size
43:51of the industrial area in order and
43:536,000 jobs have been created. Now give
43:55you an idea. Lavarak barracks and towns
43:56will have 6,000 people on it. Right? So
43:58they put a lavac barracks in basically
44:00from an economic sense. And then just
44:02down the road there was a whole suburb
44:04that was acreage properties and they
44:06reszone that to medium density and each
44:08of these acreage owners were selling off
44:10one by one and and there was land
44:13becoming available in there. So we put
44:15clients in there. We put clients in
44:16there four years ago for
44:19$450,000. All their houses are worth
44:21over 800 grand now. Okay. Now just think
44:23about what return is that? Okay. What
44:25return is that? So, if you bought a
44:27$450,000 property, you put a 45 grand
44:29deposit down, maybe 25 costs, so you've
44:32paid like $70,000 as your investment.
44:35Your mortgage is about 400. Okay, 405.
44:38So, you've so you've put 70 grand of
44:41your money in. And now you and then the
44:44house is now worth four or five years
44:45later, it's worth 800. Your mortgage is
44:48still the same interest only. So, you
44:49got 400 grand of equity. Now you tell me
44:52what 70 grand into becomes 400 grand in
44:55four or five years. What return is that?
44:58Well 70 * 2 is 140. 140 * 2 is what?
45:03280. Okay. So we've done 400% and we're
45:07not even anywhere near 400 yet. So it's
45:09like 5 to 600% return in four to five
45:13years. This is what I'm talking about,
45:14right? And here's the thing. Your
45:16financial advisors aren't allowed to
45:17give you advice on property investing.
45:19All right? It's been there all along,
45:21team. Property investing, property
45:22investing, property investing. Like,
45:24it's the easiest money you ever make and
45:26if you get it right and you do your
45:27research. So, anyway, mistake number one
45:30was wrong city. State number two, wrong
45:32suburb. And um so that's it. All right.
45:35Mistake number three, old property.
45:38Okay? Never buy an old property. Always
45:40buy brand new. Now, people go, "Oh,
45:42why?" I'll tell you why. If you don't
45:44like money, buy an old property. Okay?
45:45If you want to bleed cash flow, buy an
45:47old property. It's just the way it is in
45:48Australia. Let's say you got two houses
45:50side by side. One's brand new, one's 20
45:52years old. Otherwise, they're the same.
45:54They're worth the same. They rent for
45:56500 bucks a week. Everything's the same
45:57except one's brand new, one's 20 years
45:59old. The brand new property will cost
46:01you 200 bucks a week less to hang on to
46:04than the 20-y old property. And I'll
46:05tell you why. Right? So, 200 bucks a
46:07week is 10 grand a year. Now, what does
46:0910 grand a year buy you? It buys you a
46:11family holiday overseas every year. It
46:13services a lease on a car so you can
46:15always have a nice car, you know, like
46:17this is the difference. And then people
46:19get too pigheaded and stubborn and they
46:20don't listen and then they end up buying
46:22a property that costs them 10 grand a
46:24year more than than it needs to. Right
46:26now, so the first reason is
46:28depreciation. The second is maintenance.
46:30Now, uh we'll talk about maintenance
46:32first. Okay? So maintenance. Once a
46:34house is 20 years old, it starts needing
46:36bulk maintenance. It repaint the inside,
46:38repaint the outside. Now, how much would
46:40it cost to do all these things? Repaint
46:41the inside of a house. Repaint the
46:43outside of the house. Replace the
46:45carpets. Replace the curtains and
46:47blinds. Replace all the air conditioning
46:50units. Replace the hot water system.
46:52Renovate the bathroom. Renovate the
46:54kitchen. How much would all that cost?
46:56Refresh the landscaping outside. So once
46:58a house is 20 years old, you need to
47:00budget at least five grand a year or
47:03$100 a week, right? So you might be
47:05getting 500 bucks a week rent. You're
47:07losing 20% of your money to the
47:09maintenance budget.
47:10Right? And this is where people go
47:12wrong. They go, "Oh, I'll buy I'll just
47:13buy an oldie. I'll buy a fixer uper."
47:15We'll get to that in a second. Right?
47:16You bleed, money, and maintenance. Now,
47:18the other one is depreciation. Now,
47:20what's depreciation? Now, theoretically,
47:22the building you're sitting in right now
47:23watching this webinar from is going down
47:24in value. The curtains going down in
47:26value, car's going down in value. Now,
47:27if that's an investment property, the
47:29government allows the landlord to claim
47:31that theoretical depreciation on tax.
47:33And a brand new house gets the best tax
47:36return, right? because you can claim
47:38about
47:39$20,000 of depreciation in the first
47:42year. Now, if you claim $10,000 and
47:44you're on the 30% bracket, you'll get
47:463,000 back. So, if you claim $20,000,
47:49you're going to get $6,000 back. $6,000
47:52a year extra in your tax return is $115
47:55a week. So, back to comparing the pair,
47:57two properties side by side, both rent
47:59for 500 bucks a week. Brand new
48:01property, no maintenance. Why? Because
48:03brand new and it's getting extra $115 in
48:06the tax return. $615 in the hand. Old
48:10property, okay, is bleed is getting 500
48:12bucks a week rent, losing 100 to the
48:14maintenance budget and gets maybe $15,
48:17not $115 depreciation. Right? So, it's
48:20got $415 versus 615. Now, that's a 50%
48:25difference in the return that you
48:26ultimately get. Never ever buy an old
48:30property unless you need unless you're
48:34hard of learning. All right? Unless you
48:35don't like money, you don't like cash
48:37flow. Really, really important. All
48:39right.
48:40Renovate. To this day, I've not met
48:43anyone I've not met anyone who has made
48:46a legitimate profit doing a renovation.
48:48Not one worthy of note. Now, I've had
48:50people say, "No, do not true. Me? I I'm
48:53your first guy." All right. Tell me
48:55about it. And they go, "I made 150 grand
48:56on my Renault." I go, "Well, okay. I'm
48:58not saying you didn't. Let's hear about
49:00um now the first question I asked them
49:03is during the um during the renovation
49:07how much of your capital growth was
49:09organic market growth because the area
49:11was booming in the first place and I go
49:14so look if you bought that property and
49:16you didn't do any renovation would it
49:18have gone up in value they go oh yeah
49:20but not as much as it did right so the
49:22rena deserves some credit but the
49:24organic growth deserves credit as well
49:26how much of it was organic growth that
49:28would have happened anyway Oh, maybe 100
49:29grand. I go, "Right, snap. Right there.
49:32So, your Renault actually made 50 grand,
49:35not 150 because you would have made 100
49:37grand anyway, right?" They go, "That's a
49:39fair point." I'm like, "It is a good
49:40point." All right. How much did you
49:42spend on tools and how much did you
49:43spend on
49:45materials? Okay. And then whatever's
49:47left over is what you made from your
49:48Renault, right? And then I asked this
49:51question. How many hours did you put
49:54into the Rena? and and then we divide
49:57the amount the the the net profit by the
49:59hours and that's how much you got doing
50:00a rena all you do is effectively give
50:02yourself a part-time job. Okay. And
50:05there are other part-time jobs that pay
50:07a lot better than doing a rena. Okay.
50:09Now um if the there are some people who
50:12should renovate. They are the people who
50:15have who are full-time trades who have
50:18other jobs that they're getting they've
50:20already got the tools and they're
50:21getting surplus materials from other
50:23jobs. you got a bunch of mates who will
50:24help them, right? They're the only
50:26people who should be doing rena. They'll
50:28do it. But if you're not a full-time
50:30trady, then it's going to take you three
50:32or four times longer than you think it
50:33is. The quality of your work is going to
50:35be half as good. And you you're going to
50:37learn lose all your spare time. We did a
50:40Renault, right? You know why? Cuz I' I'd
50:42watch those buddy TV shows. You
50:44Allison's doing one right now. Get the
50:46experts in, Ally. That's my advice. Get
50:48the experts in. Knock it on the head.
50:50Get it done. Get it out of the way.
50:51Don't try and do it all yourself. If
50:53you're enjoying it, do it yourself as a
50:55hobby, but don't you're not going to
50:57make significant money for it. All
50:58right. I have seen renovations claim
51:00people's marriages, claim their health.
51:03I've seen people like drop sores through
51:05their fingers and fall off ladders. My
51:07own mother fell off a ladder doing a
51:09rena. She end up needing back surgery
51:10and then got complications with back
51:12surgery after that. Um like it's just,
51:15you know, and think about your to-do
51:17list right now. How many little projects
51:19you got around the house that you're
51:20trying to get to? Do you really want to
51:21give all of your remaining free time to
51:23a rena? Don't renovate. Right. Mistake
51:26number five. No mentor or team. No
51:28mentor, no team. No mentor, no team.
51:32Now, when I got off the plane from
51:33Teeour, if I had someone like who I am
51:36now, or my senior consultants are now
51:38grabbed me and go, "What's your plan
51:39with this money, DMO?" Oh, I'm thinking
51:41about just buying a house in Brisy. You
51:42got a posting to Briy? No. Wrong answer.
51:44Boom. What sort of house you think about
51:46buying? Buy something in Perth. What's
51:48sort of house? Oh, I'll just buy a fixer
51:49upper. No. Whack. Boom. Brand new house
51:51in Perth. You know, we would have done
51:53so well, you know. Um Allison says, "No,
51:56I'm not. It's killing me. Taking
51:58forever." Right? So, you're feeling it,
52:00Ally, right? You know what I'm talking
52:02about. Um, okay. So, the fifth mistake
52:05is no mentor, no team. So, when I built
52:08integrity property, I thought about,
52:10okay, that guy got off the plane from
52:12Teeour, what what did he need? And what
52:14he needed was an education, a proper
52:16education. He needed a mentor and needed
52:19team to get it done for him. Okay? And
52:23um so he could just focus on what he was
52:24doing. And and that's what you need. You
52:26need a mentor. You need a team to get it
52:28done for you. A team that you can trust
52:30because they are of good character and
52:31they are competent. Okay? And all of my
52:34people are of good character and they
52:36are competent. Otherwise, they don't
52:37work for me. Right? Um when you become
52:40Oh, well could go down that tangent, but
52:42I as you would expect from someone with
52:43my background, I put them through the
52:45ringer. Um any breach of integrity gone.
52:48Um it takes a lot of work to become a
52:50senior consultant and um we we do a
52:52whole heap of always training all the
52:54time. All right. So and then the final
52:57mistake is procrastinating. Putting it
52:59off, finding an excuse to not do it. Now
53:02I say to people, take a day off work.
53:05Put in leave. Ask your boss if you can
53:07knock off at lunch because you've got a
53:09appointment with the bank after lunch.
53:11When I was a boss in the army, as long
53:13as there's nothing critical, I would
53:14have let every soldier go. If they were
53:17taking care of their finances, taking
53:18care of their family. Yeah, mate. Off
53:20you go. No dramas at all. Wouldn't even
53:22ask them to put in a lever. Right. But
53:25um so, but you take time off. Now, let
53:27me ask you, why do you think I
53:30say why do you think I say um put your
53:34property investing above your job? Why
53:37is your property investing more
53:38important than your job? Why should you
53:41take leave from your job to do your
53:42property investing? Because I'll tell
53:44you something, money, right? Your job
53:46will stop making money for you the day
53:49you quit. But your properties will work
53:51for you forever. They'll work for you
53:54till the day you die. They'll work for
53:55you when you're sick. They'll work for
53:57you when you're well. They'll work for
53:59you when they'll work for your children
54:02after you go. Okay? And the returns are
54:05bigger. One day's work produced 260
54:08grand capital growth in a single year
54:11versus 550 days work that produced 170
54:14grand worth of wages. Right. And it's
54:17very very important. So make sure yeah
54:19time is money. Make sure you get that
54:21you understand that. You know I've had
54:23people say oh sorry D. I meant to get
54:25that to you but I was busy at work. I'm
54:26like dude work. Pardon my French
54:29but you know like and don't tell me
54:31there's 24 hours in a day. Don't tell me
54:32you haven't got a spare half hour to do
54:34this because you do, right? And um it's
54:36really really important, you know, and
54:38like I'm still in the army. I'm still
54:40I'm a inactive reser now and I'm still
54:43loyal to the army, but I'm telling you,
54:45put this before the defense force. Okay.
54:48All
54:49right. Next. Okay. End up selling that
54:52property and cutting our losses. Went to
54:54Iraq in 2005. Uh when I got back from
54:57Iraq, I had two things that are relevant
54:59here. The first is had $110,000 in the
55:01bank. No property because we sold the
55:03first one. 110 grand in the bank. But
55:05more importantly, um the three golden
55:08rules and I should apologize for
55:10swearing. We call it verbal punctuation,
55:13but it's unnecessary. So, I apologize
55:14for that. I just really wanted to make
55:16the point to you about how you need to
55:18get your prices. Okay. Golden rule
55:20number one is to buy where it's booming.
55:23And um you know, whenever you buy a
55:25property, buy where it's booming. Now,
55:27the poor teach their kids to buy their
55:29own home first and pay it off as fast as
55:31possible. The rich don't actually teach
55:33their kids that. The rich teach their
55:35kids to rent where you need to live and
55:38buy where you're um rent where you need
55:41to live and buy where you're going to
55:43make money. Okay? Rent where you need to
55:45live and buy where you're going to make
55:46money. Really, really important. So,
55:47golden rule number one is to buy where
55:49it's booming or invest where it's
55:50booming. The opposite to mistake number
55:52one, right? And I'm going to give you
55:54the other. So, write that down. the
55:55three golden rules and then the list.
55:57One, two, three. And I'm going to give
55:58you the other two later in the webinar
56:01just to keep you in suspense. All right.
56:04Um uh feel free to ask those questions
56:07in the background team. My um my team
56:09will answer them, but at the end of the
56:11webinar, I'll answer any of them that
56:12remain unanswered. All right. Uh I then
56:14joined the property investment industry
56:16when I left. I decided to leave the
56:17army. Well, not alltogether, but
56:19transfer out of the regs and I work for
56:21another company. Now what I realized
56:22when you're working in civ street you we
56:26have to remember that we went through a
56:28filter right we went through recruitment
56:31psych screening then we went to basic
56:33training at basic training all the
56:35thieves bludgers and liars were beat out
56:37and 99.9% of people in the defense first
56:40defense force are of high cal high high
56:43character and can be trusted. You can
56:45leave your wallet on the table in the
56:47brew room. someone's just going to pick
56:49it up, see who it belongs to, and come
56:50and find you and give it to you, right?
56:52And without taking any money. It's a
56:54utopian society. When you get in the
56:56city street, you got to remember
56:58everyone's out there, right? And so some
57:00people might have grown up in a great
57:02family and their parents beat those
57:03values into them and they're good. Uh
57:05maybe they went to a great school that
57:06taught them, but you can't take it for
57:08granted. And what what really shocked me
57:09is when I went and worked for that other
57:11company, a civilian company, I was just
57:13shocked that they're just complete lack
57:15of integrity. So I decided to start my
57:16own company. And that's why I called it
57:18integrity. Um, I've been published a
57:20bit. Uh, I first got published in the
57:22Smart Property Investor magazine and
57:24there's a long story about that how I
57:25end up in there, but that was good. And
57:27um, and then I decided to write a few of
57:29my own books. So, the first book I wrote
57:30was Safe as Houses. You can get an
57:32electronic copy of that off the website,
57:34but um, it's a bit out of date now, so I
57:36would probably uh, not do that. But um
57:39this book here there's a there's an ADF
57:41version of that book uh there extra
57:44version and we just had it um up updated
57:46actually um and it's got a bit more
57:48information in it now. Wealth through
57:50property is the big the big book. If you
57:52want to learn if you really want to
57:54learn about property investing you can
57:55just get my team to do it all for you
57:56and understand it at the basic level. My
57:58team will do the rest. You really want
57:59to nerd out on it. You want to read that
58:01book there. And it's basically the
58:03doctrine manual for property investing.
58:04Very very uh thorough. 72,000 words.
58:07makes a good doors stop if you if you
58:09need one. But um really really good.
58:11Very proud of that one. Every client
58:13gets a copy of that. Then the housing
58:15bubble myth which we talked about. Every
58:16client gets a copy of that. And then uh
58:19hang on go back. And then client success
58:21stories. Um now what I know a lot of
58:23people are skeptical. So I said said to
58:25the team I said let's write a book.
58:26Let's interview our clients and we just
58:28have a chapter from each client about
58:30what they've done. And um there is 11
58:32clients in this book and we're currently
58:34working on expanding that to probably
58:36another 20 or to 20 or 30 in the in the
58:39updates with some new clients in there.
58:41Um and of the clients, eight of the 11
58:43in the book, eight of them are serving
58:45or ex-military and three of them are
58:46cities. But um the uh so you can you'll
58:50get a copy of that as well and you can
58:51have a read about that and see that they
58:53are indeed real people just like you and
58:56they're just smart enough to uh commit
58:59to the process and take action. All
59:00right. At the end of the webinar I'm
59:02going to try and sell you something.
59:03Okay. I'm going to encourage you to
59:04become a client. You don't have to.
59:06You're welcome to stay at the webinar.
59:07You don't have to. But uh this is the
59:09process. We take you through the
59:10integrity process. All right. So first
59:12of all starts with training. then you
59:14can have a free phone call one- on-one
59:16for 15 minutes with uh one of my senior
59:19consultants and they'll just talk to you
59:21about you can get all your questions
59:22answered. But listen, you might want to
59:24you can skip that step and go straight
59:26to a strategy session. Um if you're
59:28already comfortable and you want to do
59:30it 297 for the strategy session, 100
59:33100% money back guarantee. Now we then
59:36do that session online. Now you can meet
59:38face to face if you really want to but
59:40even the people I'm in Brisbane um I
59:43think one one of the guys is on the
59:44Sunshine Coast the other two are in uh
59:47Brisbane but um the senior consultants
59:50but uh we usually do them online even
59:51the Brizzy people do them online now
59:53it's just more convenient cameras on you
59:54can see each other's face and talk you
59:56know and uh and then out that comes a
59:58client plan from there we then execute
1:00:00that plan for you now when you're ready
1:00:02to get a property if you want if you
1:00:03want to go the your own home we'll help
1:00:05you do that if you want to go investment
1:00:07will help you do that too and we'll give
1:00:08you an in brief on the locations and the
1:00:10reasons why you'll be very impressed by
1:00:12the research. Okay, all the research is
1:00:15provided and all the links of the
1:00:16original source of that information is
1:00:18provided and it's hyperl so you can
1:00:20click it and you if you want to nerd out
1:00:22on the research you can go and follow
1:00:24all the rabbits down all the burrows
1:00:26read all the original information for
1:00:28yourself so that you can be you can be
1:00:29as comfortable as you like about why
1:00:31we're recommending that location. All
1:00:33right. Then we secure the best
1:00:35properties for our clients. Finance
1:00:37property up and running, property
1:00:38established, rental management,
1:00:39established, review, and repeat. Now, if
1:00:41at any stage during the webinar you want
1:00:43to book yourself in, you can use that QR
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1:00:48instead of being charged 297, you'll be
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1:00:53yourself in now. 100% money back
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1:00:57appointment and you feel it was a waste
1:00:59of time, you didn't get anything out of
1:01:00it and you don't want to go any further,
1:01:02then you can just ask for your money
1:01:03back and you'll get your money back and
1:01:06we won't ask any questions. We'll be
1:01:07disappointed, maybe a little bit
1:01:08heartbroken, but and we want to maybe
1:01:11ask for some feedback, but you don't
1:01:12have to give any if you don't want to.
1:01:14100% money back guarant. No one ever
1:01:15does that, by the way, but it's
1:01:17important that it's there because I just
1:01:18want to take all the risk out of it for
1:01:20you. There's no risk. Okay? All right.
1:01:23Eight mindset shifts. That's the next
1:01:24thing to write down. Mindset shifts one
1:01:27to eight. First one is you haven't been
1:01:28educated yet. Right? So if you haven't
1:01:30been taught how to do something
1:01:31properly, maybe that's why you're not
1:01:33getting a result. Okay? So most of us
1:01:36born low income families, we don't get
1:01:37taught it in school. Snap. Get educated.
1:01:40That's what we do. We're going to teach
1:01:41you how to do it properly. We're going
1:01:42to show you all the stuff. You got to
1:01:44have someone you can pick up the phone
1:01:45to and go, "Hey, can you explain how
1:01:46this works to me?" Sweet. Number one,
1:01:49get educated, right? Number two, you're
1:01:51not better off doing everything
1:01:52yourself. If if these words ever come
1:01:54out of your mouth, right? You want
1:01:57something done properly, do it yourself.
1:02:00No. If you've ever come to that
1:02:02conclusion, it's because you made a
1:02:03mistake. And the mistake you made was
1:02:05you gave the job to someone who was
1:02:07incompetent and/or unreliable. Okay? And
1:02:10bad character and incompetent. And
1:02:12that's not how you succeed. The way you
1:02:15succeed is you build a team of people
1:02:16around you who you can trust who are
1:02:19more competent than you at that
1:02:21particular thing. Now, you already have
1:02:23a bit of a team like that. You've got a
1:02:24family doctor, maybe you got an
1:02:26accountant, things like that. But what
1:02:28you need to do this is is do that right
1:02:30now. The be the the right answer the if
1:02:33you want something done right, you give
1:02:35it to someone else who's trustworthy and
1:02:38more competent than you to do for you.
1:02:40That's the correct answer. Okay? Build a
1:02:42team. You're not better off doing
1:02:44everything
1:02:44yourself. Money will make you happy. Um
1:02:48the there's always say money won't make
1:02:50you happy. Rubbish. There's a lot of
1:02:51things that poor people say to other
1:02:52poor people so they don't feel bad about
1:02:54being poor. I'll just prove this right
1:02:55now. If you won the lottery tonight,
1:02:57wouldn't you be
1:02:58happier? Of course you would be. But
1:03:00guess what? Life costs money. Having a
1:03:02few toys, going on holidays, um not
1:03:05having to work because you don't need
1:03:06the money, um sending your kids to
1:03:09really good schools, helping people in
1:03:11times of disaster, and funding your own
1:03:13retirement costs money. Money will make
1:03:16you happier. Stop telling yourself it
1:03:17won't. It's a disabling mindset. It
1:03:21demotivates you to learn about money and
1:03:23demotivates you to take action on money.
1:03:25If someone says that to you to say
1:03:28actually no, that's not true, is it? You
1:03:30know, cuz it's not. All right. Number
1:03:32four, you cannot save your weight to
1:03:35wealth. Let's just say for one year you
1:03:38tried to save as much money as you
1:03:39possibly can. How much could you save in
1:03:41one year? Just in your own mind, think
1:03:42of what that is. Okay.
1:03:45Now, how much could you save in 10 years
1:03:48if you live that way? So, let's say you
1:03:49live like a porpa for a year, right? No
1:03:52movies, no going to the movies, no going
1:03:54to restaurants, no Uber Eats, and we're
1:03:56going to ride a bike to and from work.
1:03:58We're going to buy all our food in bulk
1:04:00on special from the discount
1:04:02supermarket. We're going to food prep.
1:04:04We're going to take a cut lunch to work.
1:04:07Uh we're going to read books from the
1:04:08dollar store, you know, to save every
1:04:10cent we possibly can. How much could you
1:04:12save in a year? And imagine living like
1:04:14that for 10 years. You wouldn't have any
1:04:16friends and you'd probably be a really
1:04:17boring, dull person. But imagine living
1:04:19that way for 10 years. How much money
1:04:20would you have? And then add a bit of
1:04:22interest like compounding interest or
1:04:24whatever and then how many years could
1:04:26you live on that money? Could you retire
1:04:28before you run out of money? This is the
1:04:30problem. Saving money and then spending
1:04:32it. It's it's basically you just you're
1:04:35going to live okay for a few years and
1:04:37then the money's going to run out.
1:04:39Having money in the bank is not how you
1:04:41retire. What you need is passive income.
1:04:43What's passive income? That's money that
1:04:45you earn routinely like a paycheck, but
1:04:48you don't have to go to work to get it.
1:04:50And how do you develop a passive income?
1:04:51You own stuff that pays you money. Like
1:04:54you own investment property that pays
1:04:55you the rent. You own a business that
1:04:57pays you a profit dividend every year.
1:04:59Right? And um and that's the way we
1:05:02build a passive income. All right.
1:05:04Number five, your home is a liability,
1:05:06not an asset. Now, people say your home
1:05:08is your greatest asset. No, it's not.
1:05:10Your home is a liability. Okay. Ask a
1:05:12wealthy person whether your home is an
1:05:14asset or a liability, they'll tell you
1:05:15it's a liability. Ask a poor person,
1:05:17they'll tell you it's your greatest
1:05:18asset. Now, listen to me carefully.
1:05:20Anyone who tells you your home is your
1:05:22greatest asset, stop listening to their
1:05:24financial advice. Stop. Right? Because
1:05:26what that means is that their home is
1:05:28the most expensive thing they have, and
1:05:30what's going to happen to them in
1:05:31retirement is this. They're going to go
1:05:34off the cliff, right? And they're it's
1:05:36called eating your house. It goes like
1:05:38this. So, you pay the house off and you
1:05:40feel very proud of yourself. You
1:05:41mentioned quietly to a few family
1:05:43members at the next barbecue. Yes, paid
1:05:45the house off last week. Very proud.
1:05:47Jesus, it's a relief. God, now don't
1:05:49have to pay that bloody mortgage
1:05:50anymore. Right. So then and then and
1:05:52people go, "Yeah, good on you." Well,
1:05:54that must have took a lot of discipline.
1:05:55Well done. Then you go into retirement,
1:05:58you've got your pension. Problem is your
1:05:59pension is not enough. Okay? And your
1:06:02pension is slightly indexed, but it's
1:06:03not in it's indexed for inflation, but
1:06:05not for cost of living. And what happens
1:06:07is that area that you live in and
1:06:08everything else gets more expensive.
1:06:10Also in retirement you find you need
1:06:12more money in retirement than you did
1:06:13when you were working because when
1:06:14you're working you spend all your time
1:06:16at work. In retirement you're sitting
1:06:17around bored. You want to go on
1:06:18holidays. You want to go on cruises. You
1:06:20want to go and drive around Australia in
1:06:22a caravan. And that all costs money. You
1:06:24see? And then what happens is you run
1:06:26out of money and you realize that you
1:06:27don't have anywhere. and you get to
1:06:28about 75 80 and you go to the financial
1:06:31advisor who probably got you into this
1:06:33predicament in the first place because
1:06:34they didn't teach you about property.
1:06:36You go, we're running out of money. This
1:06:38is not enough to live on. What are we
1:06:39going to do? And the financial advisor
1:06:40says, well, nothing you can do really
1:06:42because you know that's all you got. You
1:06:44what about your house? Do you really
1:06:45need such a big house? Oh, we don't want
1:06:48to sell the house. The kids grew up in
1:06:49that house. We got notches on the wall
1:06:51where we measured their height every
1:06:53birthday. Oh, well, you know, you really
1:06:57don't have much of a choice. If you sell
1:06:58your house, you'll be capital gains tax
1:06:59exempt and um we can just, you know, buy
1:07:03something half the size for half the
1:07:05price and uh invest the rest and then
1:07:07you'll be right then and then you do
1:07:09that, right? And then you die near broke
1:07:13anyway, right? There's a real I've got a
1:07:15real issue with it. Got a real issue
1:07:17with these financial advisors not
1:07:18teaching you about property investing
1:07:20and and you should too. All right? Your
1:07:22home is not your greatest asset. It's a
1:07:24liability. Even when you pay your
1:07:25mortgage off, your house will still cost
1:07:26you money, right? And yes, it's going up
1:07:28in value, but you can't spend that money
1:07:30without selling the house, right? So,
1:07:32the the equity in your house is almost
1:07:34irrelevant. There's a there is one thing
1:07:36we can do. Talk about that in a second,
1:07:38but it's almost irrelevant. Okay? And uh
1:07:41there's no passive income coming in. So,
1:07:42you got to pay. You still be mortgage.
1:07:44You might be mortgage free, but you
1:07:45won't be council rates free, insurance
1:07:47premium free, maintenance free.
1:07:48Remember, once your house is 20 years
1:07:50old, it's going to cost you at least a
1:07:51hundred bucks a week, your maintenance
1:07:52bills, and um and so on and so on. All
1:07:55right. Number six, understand what a
1:07:56real asset is. Now, the common
1:07:59definition of an asset is anything you
1:08:00own of value that you can sell for
1:08:02money. But like the old Valvaline ad
1:08:04that said oils own oils. Well, assets
1:08:06aren't assets. Some assets will make you
1:08:08rich, some will make you poor. Now, if I
1:08:11got you to write a list of what all your
1:08:13assets are, you would write down a list
1:08:15of everything that you own that's of
1:08:16value. But a real asset has to go up in
1:08:20value and produce an income. Okay? Must
1:08:23go up in value and produce an income.
1:08:25Now, think about it. If the stuff you
1:08:26own is going down in value, is your net
1:08:28worth increasing or decreasing? It's
1:08:31decreasing, right? So, it must be going
1:08:33up in value. And it must produce an
1:08:35income because if it doesn't produce an
1:08:36income, it can't do two things. First of
1:08:39all, it can't pay its own bills. It
1:08:41can't pay its own council rates, its own
1:08:42insurance, and maintenance bills and
1:08:44things like that. The second thing is it
1:08:46can't produce you a passive income that
1:08:48will replace your need to work. That's
1:08:50why it's critical that it has a passive
1:08:52income coming off
1:08:54it. So most of you would list your car
1:08:56as an asset because it's of value. But
1:08:58your car is going down in value and
1:09:00costing you money. Okay? You could buy a
1:09:02car with a $40,000 car with a loan. By
1:09:05the time that loan's paid off, the car
1:09:06will be worth $20,000, and you would
1:09:08have paid in excess of $80,000 in
1:09:11interest charges, loan repayments, and
1:09:14all the other associated costs of
1:09:15running that car. Cars are a liability.
1:09:18They do not make you rich. Um, now the
1:09:20wealthy do buy cars, and um, one of my
1:09:23mentors who's an Australian billionaire
1:09:25taught me a very interesting way. He
1:09:26said, "How the rich buy their cars?" If
1:09:28we got time at the end, someone asked
1:09:29me, "How do the rich buy their cars?"
1:09:31Right? your own home of value goes up in
1:09:34value. So that's an asset then DO but it
1:09:37doesn't produce an income. So it doesn't
1:09:39meet the criteria. You will still have
1:09:41to pay it. You're on the hook to where
1:09:43you going to get the money to pay your
1:09:44house from from working right. All
1:09:47right. What if you own the house next
1:09:49door? It's identical to yours but you
1:09:52rent it
1:09:55out. Produces two incomes, a rent and a
1:09:58tax return. Okay. So, investment
1:10:00properties are real assets. What else
1:10:02could we buy? What else could we acquire
1:10:04that would meet the definition of a real
1:10:07asset? So, they're actually really just
1:10:08only four types of real assets. Okay?
1:10:11Property that you rent out to someone
1:10:13else, be it commercial, resi, whatever.
1:10:15Okay? Businesses that you own. You are
1:10:17the owner of the business or you're in
1:10:19full majority control of the business.
1:10:20So, therefore, you can guarantee two
1:10:23things. One is that you get paid and two
1:10:24that the business grows because you can
1:10:26work on it. Yeah. The third is shares,
1:10:28where you're a minority shareholder in a
1:10:31bigger enterprise that has a board and a
1:10:33CEO running it. Okay. And the fourth is
1:10:36what I would broadly refer to as
1:10:38royalties. Okay. So, um you know, maybe
1:10:42you are a musician or an actor or an
1:10:44inventor and you create something that
1:10:47then someone else you license to someone
1:10:49else to sell and every time they sell
1:10:50it, you get a dollar or whatever from
1:10:53from that royalties. Okay. All right.
1:10:56Now, how how do you get rich? Now, this
1:11:00is everyone wants to be rich, but no one
1:11:02knows the answer to the question, how do
1:11:03you get rich? Now, the actual correct
1:11:05answer to how to get rich is this.
1:11:07Accumulate a portfolio of real assets.
1:11:09Okay? Accumulate a portfolio of real
1:11:14assets. Accumulate a portfolio of real
1:11:16assets. Now, how many real assets do you
1:11:18own right now? Now, I give you a clue.
1:11:21All of you actually own one. It's called
1:11:23your superanuation fund. The
1:11:24superanuation fund is effectively a
1:11:26share portfolio with some personal
1:11:29insuranceances thrown in the mix, okay?
1:11:31And some very strict rules about it. Um,
1:11:34your superanuation fund is receiving
1:11:36dividends from those shares, but they're
1:11:38reinvesting them back into buying more
1:11:40shares. And when you go into retirement
1:11:41phase, then those dividends will be used
1:11:44to help fund your pension that you draw
1:11:46from your super fund. Okay? But if
1:11:48you're spinning your wheels financially
1:11:50and wondering why, now you know. That's
1:11:52why. because you don't own any real
1:11:54assets. The only asset you've got to
1:11:56make money with is your human body,
1:11:58right? We go down to Kennard's higher
1:12:00and there's a cement mixer and a trailer
1:12:01and a generator and a jackhammer and
1:12:03then there's you standing at attention
1:12:06as a piece of equipment ready for hire
1:12:08and that's what you're doing, right? But
1:12:09your workingass upbringing taught you
1:12:11that that's how to get money. Go work
1:12:12for it, right? But there are other ways
1:12:15to get money that are a lot lot easier.
1:12:17Okay? And uh this is the thing and
1:12:19people spend their whole life with their
1:12:21blinkers on with this workingclass
1:12:22mindset. Work hard, you'll be
1:12:24successful, get a job, work, work, work.
1:12:27Some people work three jobs to get
1:12:29ahead. It's like, dude, chill out. Slow
1:12:31down. Come and talk to Dam. I'll help
1:12:33you out. Right. Um it might it might you
1:12:37might need to work three jobs for a
1:12:39couple like for a year or two just to
1:12:41get enough to pay all your bad debts off
1:12:43and get get a deposit together. But
1:12:45anyway, all right. Number seven,
1:12:47understand difference between good and
1:12:48bad debt. Good debt is your friend. Bad
1:12:50debt is your enemy. Good debt is debt
1:12:52that's used to buy real assets that then
1:12:54pay themselves off and make money. Bad
1:12:56debt is debt that's used to buy stuff
1:12:57that loses money. Okay? So, car loans,
1:13:00jet skis, etc. All right. So, how much
1:13:01good debt have you got right now? How
1:13:02much bad debt have you got? Make sure
1:13:04you understand the difference between
1:13:05good and bad debt. A lot of people
1:13:07believe all debt is bad. That's not
1:13:08true. If you believe all debt is bad,
1:13:10you are not going to be wealthy, okay?
1:13:12Unless you can like invent the next
1:13:14paperclip or something, but even then
1:13:16you probably need to borrow money of
1:13:18someone else to get it developed and get
1:13:19the idea to market, right? So, good and
1:13:22bad debt. How much good debt have you
1:13:24got right now? Embrace good debt as your
1:13:25friend. The more good debt you've got,
1:13:26the wealthier you're going to be. Um, as
1:13:28long as you got a plan for, you know,
1:13:30the actual assets that you what you're
1:13:31using it for is paying the debt off for
1:13:33you. No one ever got rich without
1:13:36getting into debt. No one ever got rich
1:13:38about getting into good debt. All right.
1:13:39Accountants and financial advisors do
1:13:41not know best. Okay. Um the elephant in
1:13:44the room is real estate. Now I was
1:13:46really shocked when I got home from
1:13:48Iraq. My wife's family were like you
1:13:51need to go and see our financial advisor
1:13:53Damian. I'm like okay. And obviously
1:13:56their their daughter was married to me
1:13:58so they were concerned for her her
1:14:00financial future. And um so we went uh
1:14:03to see this guy. They said he's an ex
1:14:05lieutenant lieutenant commander in the
1:14:07Navy. Good man. He was a good man. I
1:14:09went and saw this bloke. I sat there and
1:14:11I said, "Mate, I got 110 grand and uh
1:14:14I'm going to give you 100 grand to
1:14:16invest. I want you to tell me what you
1:14:17can do with it. I'll keep 10 grand for
1:14:19fun money." He shows me. He gets his
1:14:21little c computer out. They're very good
1:14:23financial advisor. Got all these
1:14:24software and stuff that I projecting bar
1:14:27charts and lines going everywhere. And
1:14:29he showed me how he could turn it into
1:14:31200 grand in 10 years. And I was just
1:14:33like, "Dude, you know, I was like,
1:14:36okay." And then I said, "You got a piece
1:14:37of paper?" He go, "Yeah." And I showed
1:14:39him how I could turn it into 800 grand
1:14:41in 10 years through property, right? By
1:14:44using that money. Back then, property is
1:14:46a bit cheaper, right? But using that
1:14:47money to buy two properties and turning
1:14:50it into 800 grand worth of equity in
1:14:52that time. He was a good man because he
1:14:55stopped and he looked at me and he said,
1:14:57"Damian, look, I actually can't see
1:15:00anything wrong with what you just said."
1:15:02He said, 'But you should you need to
1:15:03understand that, you know, financial
1:15:04advisors can't give you advice on
1:15:06property investment. They also can't
1:15:08give you advice on buying a business.
1:15:10And I was like, are you for real, dude?
1:15:12He's like, yeah. And I'm like, oh. And
1:15:15he goes, but anything else I can help
1:15:17you with? And I was like, the jig is up,
1:15:20you bastards. And and he's nice fell.
1:15:22You know, your financial advisor might
1:15:23be a nice person, too, but they're not
1:15:25allowed to give you advice on real
1:15:26estate because they don't want you to
1:15:27give advice because they make money.
1:15:29They don't want to give you advice on
1:15:30real estate because they make money when
1:15:33you buy shares when you buy managed
1:15:34funds. The way that works is that
1:15:36managed fund company or whatever they
1:15:38they're like we're raising money for BHP
1:15:40want us to raise $100 million. So and
1:15:43and then the 10 if they raise $100
1:15:46million for BHP they get 10% commission
1:15:48on the money they raise, right? So they
1:15:50go to you and they go put 100 grand into
1:15:52this. That's the way it works. That's
1:15:54how they make their money. Now some
1:15:55financial advisor might be really good.
1:15:57I haven't met one yet. Um that and and
1:16:00shares are better than a savings
1:16:01account, but property property property.
1:16:03The elephant in the room is literally
1:16:05property. If you actually reflect, for
1:16:07those of you who have been older who've
1:16:08had property for a while, if you reflect
1:16:10on how much money your properties have
1:16:12made you versus the amount of effort you
1:16:13had to put in, easiest money you've ever
1:16:15made, right? Easiest money you've ever
1:16:17made. And often people have one house
1:16:19and it's gone up a million dollars and
1:16:21they're like, um, they don't it doesn't
1:16:24even click. And I and I say to people, I
1:16:26said, "This house made you a million
1:16:28bucks. It's now worth $1.5 million. You
1:16:30bought it for 500." They go, "Yeah." I
1:16:32go, "Why aren't why don't you go and buy
1:16:35three of these or four of these?" Oh, I
1:16:36didn't really think about that. We're
1:16:38just too busy paying off the one we had.
1:16:39I said, "Don't worry about paying off
1:16:40the one you have. Put the minimum on it.
1:16:42Put all your money into buying more and
1:16:44then in 10 years from now, you can sell
1:16:46one of the investment properties, pay
1:16:47this one off, sell and and keep the
1:16:50rest." All right. How an investment
1:16:52property works. the
1:16:54um so that was number eight, right?
1:16:57Accounts and financial advisors don't
1:16:58know best. Okay. All right. They you
1:17:00need an accountant. You need a financial
1:17:01advisor. Just don't they're not captain
1:17:03of the team. Yeah. Really important.
1:17:05Right. You're the captain of the team by
1:17:07the way. All right. How investment
1:17:08property works. The cost of owning a
1:17:09property goes up over time infl with
1:17:11inflation and maintenance cost etc. But
1:17:14the income you earn from a property goes
1:17:16up far greater. Okay. So cost probably
1:17:18go up 2 to 3% peranom maybe a little bit
1:17:20more. and income goes up 7% peranom on
1:17:23historical average. Now, neither of
1:17:24those lines would be straight. They'd be
1:17:26wavy lines, but that would be the
1:17:27general trend. Okay? Now, when you first
1:17:29get a property, it might be losing money
1:17:32because you borrow 90 95%. The cost of
1:17:34owning the property might exceed the
1:17:36income you're receiving. This is where
1:17:38interestonly loans have a great effect.
1:17:40For the first five years, you might put
1:17:42your prop your invest property on
1:17:43interest only. So you don't have to make
1:17:45a principal payment and that gives you a
1:17:47few hundred extra a week that are not
1:17:49being consumed and then you can go
1:17:51through. Now the assumption is if you
1:17:53follow golden rule number one which is
1:17:54buy where it's booming. After that five
1:17:56years your property has dramatically
1:17:57increased in value but so has the rent
1:18:00and then you can switch it off the
1:18:02interest only on to PNI and start paying
1:18:05the property off. Now here's the thing
1:18:07about the green zone. It might only be
1:18:0950 bucks a week positive at first, but
1:18:12when you get down the line here, okay,
1:18:14when that mortgage clears out, it'll be
1:18:16massively profitable, right? And then
1:18:18not only that, as time goes by, it keeps
1:18:20getting better and better and better,
1:18:21and your little bastard kids are going
1:18:24get they're really going to love you
1:18:25when you go, but by the time you go, the
1:18:27thing's just going to be a money money
1:18:29producing machine. So maybe you sell it
1:18:31before you die and give it all to
1:18:32charity. But the um anyway, now another
1:18:35way to look at investment property is um
1:18:38apples like an apple tree, right? The
1:18:40apples are the rent and the tree is the
1:18:41capital growth. So, but you got to have
1:18:43the foresight to plant the seeds. Okay?
1:18:46And this is a good metaphor, right?
1:18:48Everyone wants the apple tree, but you
1:18:49can't just create an apple tree, a
1:18:51mature tree on day one. You have to put
1:18:53the work in, right? You got to dig the
1:18:55hole, plant the seed, water it, wait, be
1:18:57patient, and then you might get a few
1:18:59little apples, but you let it go. you
1:19:01leave it long enough, it'll be a massive
1:19:02tree, right? And we don't just want one
1:19:04apple tree, we want a whole orchard of
1:19:05them. Okay? Now, what happens a lot of
1:19:07people, they'll inherit a property and
1:19:09they'll sell the bloody thing. And it's
1:19:10like, you're just like, and I just
1:19:12visualize like a drunk person with a
1:19:14chainsaw chopping down the apple tree.
1:19:16All right? Now, we don't want to chop
1:19:17down the apple tree. We just want to
1:19:19keep picking the apples and sell them um
1:19:21or eat them and plant more seeds. All
1:19:23right. How's it probably reduce your
1:19:25tax? 100 grand income. You pay probably
1:19:2825 grand tax on it. you own this
1:19:30investment property. It rents for 33
1:19:32grand a year. The rent on your
1:19:33investment property is taxable income.
1:19:35At this point in time, you would have a
1:19:36tax bill, not a tax return because the
1:19:39rent is actually taxable. Right now, we
1:19:42then of course can claim all the
1:19:44deductions and these all the expenses.
1:19:46This property is a bit of a dog at this
1:19:48stage. It's earning 33,800, but it's
1:19:51losing 4,1800. Okay, that's not very
1:19:54good. Screw that. I don't want to
1:19:55subsidize this property to the tune of
1:19:57what's it about eight grand a year. Now,
1:20:00this is interesting though. Watch what
1:20:01happens. Depreciation, not a real
1:20:04expense, just a theoretical expense,
1:20:06drives us into the red on paper only.
1:20:08Our taxable income is now 72 grand, not
1:20:11100 grand. That triggers a tax return.
1:20:14Tax return is calculated as
1:20:17$8,392 if we get 30% of the 27974 back.
1:20:22Right. And now, is this property really
1:20:24positive or negative cash flow? Well,
1:20:26it's receiving 33,800 in rent, but
1:20:30$8,392 in tax return. So, it's over 42
1:20:34grand of cash in the bank, but only
1:20:36losing for under 42 grand in cash out or
1:20:39$418 a year start point. Now, we buy
1:20:42where it's booming. The rent's going to
1:20:44go up. That figure will just get bigger.
1:20:47All right, not bad. Now, if you want a
1:20:49property like that, make sure you do
1:20:50book yourself in, become a client, and
1:20:51my team will help you. They'll get some.
1:20:53These properties do exist and they do
1:20:55exist in highquality
1:20:57locations. All right. How to build a
1:20:59portfolio from scratch. So, let's say
1:21:01you didn't inherit 150 grand. You're
1:21:03broke, right? Or you've only got a
1:21:04little bit of money. Raise the deposit.
1:21:06Get deployed. Operations exercises or
1:21:08training courses. Why? Because they keep
1:21:10you busy and you get allowances. They
1:21:12feed you and you get allowances, right?
1:21:14So you don't have to um necessarily go
1:21:16to war, but you can um you know just
1:21:19volunteer for everything. All right.
1:21:21Now, if you're a civ and you're not in
1:21:22defense anymore, you maybe go work
1:21:24somewhere in a remote town or take a re
1:21:27take a contract in a regional center
1:21:29where they're paying extra money or go
1:21:31work in the mines for you or something
1:21:32like that. You know, they've got
1:21:33options. All right. Number two, DVA
1:21:35compound payout. Now, um I'll give you a
1:21:37great example. Uh tenerous is that
1:21:39ringing sound in you when you lay in bed
1:21:41at night, you hear that sound. Okay,
1:21:43that's a claim. I had no idea. I've got
1:21:45that. Why? I was in the artillery, but
1:21:47everyone gets it in defense because you
1:21:49got firing rifles, you've got riding in
1:21:52the back of trucks, jet noise and flight
1:21:54lines, engine rooms in ships, you know,
1:21:56all of that stuff. Right now, um, a
1:21:59tenants claim is real simple. Go to GP,
1:22:02get a referral, go to a aiologist.
1:22:05Aiologists can't actually prove you
1:22:07don't have it. They just get ask you
1:22:08questions, you answer them honestly.
1:22:10They then diagnose you with it. You take
1:22:12that back, you give it to your DVA
1:22:14advocate, send it in. Three to six
1:22:15months later, you got $36,000 in the
1:22:17bank. That's just one claim. Number
1:22:20three, get family help. Your family can
1:22:22help you in three different ways. They
1:22:23can give you some cash towards the
1:22:24deposit. They can lend you some cash
1:22:26towards the deposit or they can go
1:22:28guarantor on the loan to buy the
1:22:30property. That's where you borrow 105%
1:22:31of the property purchase price, 100% to
1:22:34pay for the property, 5% to pay for the
1:22:35stampy, legal fees, etc. Mom and dad
1:22:38then guarantor on the loan. you pay the
1:22:39repayments, you fall over, they have to
1:22:41pick them up. But if you follow golden
1:22:43rule number one, buy where it's booming,
1:22:45that property will be in a booming
1:22:47location, and within a few short years,
1:22:49it'll be worth more than the loan. You
1:22:51go back to the bank, you say, "Hey,
1:22:53bought the property for 500, loan's 530,
1:22:56the propertyy's now worth 650, worth
1:22:58more than the loan. Can you please
1:23:00release mom and dad's guarantee?"
1:23:01They'll release it or you'll go to
1:23:03another bank and refinance it with
1:23:04another bank. All right. First home, a
1:23:07grants or safe, safe, save. Now, you
1:23:08cannot save your way to wealth, but you
1:23:10can save your way to a deposit for a
1:23:12property. Okay? And it's only the first
1:23:14property that we need to work hard for
1:23:16because after that, it's easy. And I'll
1:23:18show you in a second. All right? So,
1:23:19let's buy a $650,000 property, 65 grand
1:23:22deposit, 30 grand costs. Boom. All
1:23:25right. Why would we do that? Here's why.
1:23:27Because it's going to go up in value. If
1:23:29we follow golden rule number one, buy
1:23:31rates booming. the limit that we can
1:23:32borrow will increase and the loan will
1:23:35still be the same figure, but it will
1:23:36have shrunk relative to the value of the
1:23:38property. It's a bit like if you bought
1:23:39a property in 1970 for $8.5 grand and
1:23:42you had $8,000 mortgage back and you're
1:23:44on $2,000 a year salary, you're probably
1:23:46crapping yourself then about how
1:23:47expensive your mortgage was. Fast
1:23:49forward 50 years, if you still had an
1:23:51$8,000 mortgage on your house, but your
1:23:52house is worth 1.5 million, you wouldn't
1:23:54be upset, would you? Anyway, right. So,
1:23:57now we can access the equity in that
1:24:00home. We get a second loan against the
1:24:02first property using none of our own
1:24:03cash. What are we going to use that loan
1:24:05for? We're going to use that loan to pay
1:24:06the deposit, the stamp duty, all the
1:24:09other costs on the second property. Now,
1:24:11we have two properties. Okay? So, the
1:24:13first property is the hardest once. But
1:24:15if you follow the rules, you buy where
1:24:17it's booming, it'll go up in value and
1:24:20then you'll be able to refinance it and
1:24:21get your second property using your own
1:24:23money. If you already own property that
1:24:24has equity in it, you don't need any
1:24:26cash. You can just use the one you got.
1:24:28Get an equity loan. Boom. like that.
1:24:30Talk to our team. They'll organize it
1:24:32all for you. All
1:24:34right? Then just start accumulating. One
1:24:36becomes two, two become four and so on.
1:24:39Okay? To make that work, you need the
1:24:41golden rules. Buy where it's booming.
1:24:44Make sure your properties pay for
1:24:45themselves or near enough. Your
1:24:47property's costing you 50 to 100 bucks a
1:24:49week. That's all right. If you can't say
1:24:5050 to 100 bucks a week now, you got
1:24:52issues and you go have a little bit good
1:24:53hard look at yourself, right? But if
1:24:55it's costing you like a,000 bucks or 50
1:24:58500, that's too much. Yeah. And the
1:25:00novelty is going to wear off real quick.
1:25:02Okay. Make sure you probably pay for
1:25:04sales or close enough. And never ever
1:25:06sell. When you sell, you're the drunk
1:25:08man with a chainsaw chopping down the
1:25:09apple tree. Okay? Keep the property. If
1:25:11you've got a property at the moment that
1:25:12you think's a bit of a dog, don't sell
1:25:14it. Book yourself in with the team and
1:25:16ask them to take go through it, run the
1:25:18numbers on it, and see. You might be
1:25:21really close to it breaking even. There
1:25:23might be some things you can do with the
1:25:24finance. Some different things that you
1:25:25can do to make that property perform for
1:25:28you. But there's an old saying in
1:25:29property investment is time has a habit
1:25:31of making the worst investor look good.
1:25:34And if you just hang on to the bloody
1:25:35thing, maybe it cost you 50 bucks a week
1:25:37or 100 bucks, 200 bucks. If you hang on
1:25:39to it, it eventually will ride itself
1:25:42and be a real asset that you appreciate
1:25:44having. Generally, you regret every
1:25:46property you ever
1:25:47sell. All right. Now, if you believe
1:25:50that rent money is dead money, listen
1:25:52carefully to what I'm about to teach
1:25:53you, okay? I'm going to challenge you on
1:25:55that. Rent money is dead money. But just
1:25:57listen, right? Okay. All right. Bob and
1:26:00John live side by side. They live in
1:26:02their own homes. They're very happy.
1:26:04Bob's happy. He's got his house. He
1:26:06started He worked really hard to get
1:26:08into his house. Bob did. And uh anyway,
1:26:10John has an idea. He says, "Bob," he
1:26:12goes, "Mate, I got an idea. If we live
1:26:15in our own home, there is no tax benefit
1:26:16to living our home. We can't claim any
1:26:18of the costs on tax. Nothing at all.
1:26:20Okay. There's only one tax benefit,
1:26:22which is what? Capital gains tax exempt
1:26:24if you sell the house. The golden rule
1:26:26number three is never sell. So if you're
1:26:27never going to sell, that benefit is
1:26:30irrelevant. All right. John says, "Bob,
1:26:32let's swap houses. I'll live in your
1:26:33house. You live in mine." Okay. Now, now
1:26:37we can claim everything on tax. Bob
1:26:39said, "Oh, that's brilliant. Great
1:26:40idea." First week rolls around, Bob's
1:26:42got to pay John rent. Now it doesn't
1:26:44make sense. Now Bob's pissed. He picks
1:26:46up the phone, rings up. John says,
1:26:47"John, this is rubbish, mate. Look," he
1:26:50goes, "I can, first of all, I cannot
1:26:52afford to pay a mortgage and pay rent at
1:26:54the same time." Right? Second of all, no
1:26:56disrespect to you, mate, but I don't
1:26:58want to pay your house off for you. And
1:27:00I hear people say, "I don't want to pay
1:27:01someone else's house." Right? And and so
1:27:04this a rubbish idea. I want out. John
1:27:06says, "No, no, no, no. It's good, Bob.
1:27:07It's good." He goes, "No, no, no. It's
1:27:08rubbish." He goes, "Well, listen.
1:27:09Something's about to happen." He goes,
1:27:11"What's that?" I said, "Well, I'm going
1:27:12to pay you rent." And that cancels out.
1:27:15You see, it's okay to rent if you own a
1:27:18property somewhere else that someone's
1:27:20renting off you. It's not okay to just
1:27:22not own property. Okay, that's the first
1:27:25thing. If you don't own a property, you
1:27:26need to get laser-like focus. Stop
1:27:28pissing all your money away and focus on
1:27:30just getting that first property. Once
1:27:32you got the first one, you can grow your
1:27:33portfolio. You don't have to worry too
1:27:35much about saving. The first property is
1:27:36critical. But not only when you crunch
1:27:40when you do the numbers like this, like
1:27:42every no one should be living in their
1:27:43own home. Everyone should be renting off
1:27:45each other because then no one owns
1:27:47their own home. They just own investment
1:27:49properties, right? And all the
1:27:51properties that you do own, you can
1:27:52claim. Now, there are two times you
1:27:54should buy your own home. Two times and
1:27:56two times only. I'm going to teach you
1:27:57what they are. But here's the thing,
1:27:59right? So, this concept is called rent
1:28:01vesting. You might have heard of it, but
1:28:02that's what it means. Okay? You're
1:28:04better off just renting. Now, the
1:28:06property that I live in, for example, um
1:28:08it's a $3.5 million inner city
1:28:10apartment, right? It's like a semi. It's
1:28:12not a sort of a sub penthouse, right?
1:28:15And I rent it for 1350 a week. Now, if I
1:28:18was to own it, it would cost me a bloody
1:28:21arm and a leg, right? Because it's much
1:28:24cheaper to rent it than buy it. And when
1:28:26you do the analysis, you'll see how this
1:28:28works. Okay? So, it's just it's
1:28:30interesting. But if you live in the if
1:28:32you live in the if you're in the defense
1:28:33force or any other trade that gives you
1:28:35subsidized rent and average Joe on the
1:28:37street is better off renting and buying
1:28:39investment properties then you even more
1:28:41so should be staying in a service
1:28:44residence or on RA because you're even
1:28:47better better off. You're triple better
1:28:48off right by doing it. Okay. So rent
1:28:52money is dead money but so is all this
1:28:54other stuff. And when a lot of people
1:28:56get a rude shock when they live in their
1:28:58own home and they move out of a married
1:29:00quarter and they move in their own home,
1:29:02they get a rude shock and like where's
1:29:03all that money going? I'll tell you
1:29:04where it's going. When you were renting,
1:29:06you didn't have to pay the interest on
1:29:08the loan. You didn't have to pay council
1:29:09rates. You didn't have to pay insurance.
1:29:11You didn't have to pay maintenance. Now
1:29:12you got to pay all those. And interest
1:29:14on your loan is dead money. You know,
1:29:16you're paying your house off, sure, but
1:29:18about 80% of your loan repayment is dead
1:29:21money. It's going to the bank in
1:29:23interest charges. So there's dead money
1:29:25no matter where you go, right? There's
1:29:27dead money in living in your own home
1:29:28and there's dead money in renting. Okay,
1:29:31the idea is to minimize the dead money.
1:29:34Okay, minimize the dead money. You're
1:29:36going to pay some either way. Minimize
1:29:37it. And rent vesting is actually the
1:29:39best way to do it. Shock horror. Okay,
1:29:43here's all the entitlements. I'm going
1:29:44to go through these real quick and then
1:29:45wrap it up. Okay, first home owners
1:29:47grant varies from state to state. It's
1:29:49only for your first owner occupied home.
1:29:51you can buy investment property first
1:29:52and buy your own home later and you will
1:29:55not be disqualified. When the first home
1:29:56manage grant first came out like 20
1:29:58years ago, whatever it was, um you
1:30:00couldn't own investment property first.
1:30:02You now can. Okay. Um must be brand new
1:30:05property. If you want the first home
1:30:06manage grant, must be brand new, which
1:30:08means you're probably going to have to
1:30:09build a house and land package. Okay. Um
1:30:11that's the way it is. Why is that? It's
1:30:13what they call a policy mechanism
1:30:15because they're letting all the migrants
1:30:16into the country. They need to grow the
1:30:18number of houses. So, how do they one
1:30:20technique is to go, okay, well, we're
1:30:22only going to allow people get the first
1:30:23home owners grant if they build a new
1:30:24house. Right? So, now that's what
1:30:27happens. All right? Must move in within
1:30:29the first 12 months from key handover.
1:30:31Okay? And you must live in it for at
1:30:33least 6 months. Now, no one's going to
1:30:34check if you're there. You just want to
1:30:36designate the house as your principal
1:30:38place residence. Enroll to vote there,
1:30:40maybe register your car there, and um
1:30:43and then leave it. Now, do not rent it
1:30:46out officially or claim anything on tax
1:30:48for that six-month period. Otherwise,
1:30:50you'll be double dipping on benefits.
1:30:52And if they catch you, best case,
1:30:54they'll just take the first home owners
1:30:55grant back. Worst case, they'll charge
1:30:57you for fraud. Right. Not good for your
1:30:59military career getting a fraud charge.
1:31:01Stamp duty concessions uh uh vary from
1:31:04state to state. When you buy a property,
1:31:05the state government tax you if you're a
1:31:07first-time home buyer, all states other
1:31:09than the Northern Territory will give
1:31:11you a discount on that. So, let's use an
1:31:13example. Say Queensland. Right now in
1:31:15Queensland, you're going to get $54,000
1:31:18of benefits. So, if you had a little
1:31:20shock before with the example said you
1:31:21need 95 grand to buy that house, well,
1:31:24you've already got 54 straight away just
1:31:26from the first home owners grant stamp
1:31:27concessions if you do it right. All
1:31:29right. Haz full-time service members
1:31:32only. Um, first home that you buy while
1:31:35serving the full-time ADF. If both you
1:31:37and your spouse are serving, you both
1:31:38get one, just can't use it at the same
1:31:39time. 12 months tenure on your posting
1:31:42order when you sign the contract or you
1:31:43not you have to wait till you get to the
1:31:45next location. It's
1:31:47$16,949 before tax. If it's taxed at
1:31:5030%, you'll end up with 11,800. If
1:31:53you're taxed at 37%, you'll end up with
1:31:5510,600. Okay, let's call it 11 grand.
1:31:58So, we're in Queensland. We're getting
1:32:0054 grand from the Queensland government
1:32:02in 30 grand in uh grant and 24 grand off
1:32:05the stamp duty. Fits four grand. And now
1:32:08we're getting 11 grand off the defense
1:32:10force. So we're sitting at $65,000. We
1:32:12still haven't touched our own money or
1:32:13borrowed any money from friends and
1:32:15family. Hepsi, the basic principle of
1:32:17Hepsi is is that if you're going to
1:32:19serve the nation, you should not be
1:32:20denied the right to live in your own
1:32:22home. So when you have to when you get
1:32:24posted and you have to sell the house,
1:32:25buy another one, um defense will cover
1:32:28the transaction cost of replacing the
1:32:29property. Right? Haz is the entitlement
1:32:32to buy property number one there. That's
1:32:34all you get when you purchase the first
1:32:36property. But Heepsi applies for all the
1:32:39transactions after that. So if you get
1:32:41posted away, you sell that first
1:32:43property, you're going to incur um
1:32:45agents commission, advertising costs,
1:32:47legal fees, etc. So mortgage u maybe
1:32:50loan discharge fees and things like
1:32:52that. So you defense will reimburse all
1:32:54those. When you get to the new location,
1:32:56you buy another property. Okay. Um
1:32:58you're going to have stamp duty, LMI,
1:33:01building inspection, person inspection.
1:33:02Defense will reimburse all those as
1:33:04well. Legal costs, etc. You must
1:33:06maintain the sell by sell by sequence
1:33:08which means you have to sell the last
1:33:09house before you can buy claim anything
1:33:11on the next one. So don't sell right so
1:33:15what I say don't sell but if you've
1:33:16already bought and sold properties go
1:33:18and check whether you've claimed all
1:33:19this or not. Um I hadn't I didn't know
1:33:22what HP and he really were until I'd
1:33:24bought and sold the first property and
1:33:26bought another property in Darwin that
1:33:27we were living in. Okay. And um so I put
1:33:30in a haz and two heepsi claims got 45
1:33:32grand back in one hit.
1:33:35All right, Dohas. Okay, Dohas is worth a
1:33:39lot of money. A hell of a lot of money.
1:33:40Okay, it's now you must have served in
1:33:44the ADF regular reserves on or after the
1:33:461 of July 2018. If you got out before
1:33:48then, I'm sorry, but you're not eligible
1:33:50for that scheme. Um, now to qualify for
1:33:52the scheme, you got to do two years in
1:33:54the permanent forces or four years in
1:33:55the reserves. And the amount and the way
1:33:58it works is every month they pay that
1:34:00money in the right hand column to your
1:34:02mortgage to help you pay it off.
1:34:04All right. Now, the number of years of
1:34:06subsidy is your length of service minus
1:34:07qualifying period. So, if you've been in
1:34:09the PATH, the permanent air force for 20
1:34:11years, then you will get 18 years of
1:34:14subsidy. Okay. Right. War service adds 5
1:34:17years of subsidy, but does not fast
1:34:19track your eligibility. Um, so yeah, you
1:34:22just get an extra 5 years. You must do
1:34:2420 years full-time or part-time to
1:34:27retain the tier three. If you get out
1:34:29before that, the remaining years of
1:34:31entitlement will drop down to half the
1:34:33rate, which is tier one. If you look at
1:34:35those numbers, you see there the tier 3
1:34:371155. Tier one is half of that and tier
1:34:41two is 75% of that. All right. Now, the
1:34:44maximum benefit you can get is 20 years
1:34:46or 25 years if you jag a war service
1:34:48deployment. Okay? So therefore, you need
1:34:52to do 22 or 24 years to maximize the
1:34:55doouse benefit. Okay? So hear me now.
1:34:58This is really important. If you've had
1:35:00a gut full of the defense force and
1:35:01you're thinking about getting out, don't
1:35:03get out. Just transfer to the reserves
1:35:06and do 20 days without fail. It's my
1:35:08firm belie if you're in a leadership
1:35:10position in defense, someone puts a
1:35:11discharge on your desk, you grab them,
1:35:14you say, "Are you aware of your DA
1:35:16entitlement? Do you know how much it's
1:35:18worth?" And they'll go, "What's that?"
1:35:19And you go, "It's worth
1:35:22$346,000, mate, if you do it right. And
1:35:24if you leave the defense force
1:35:26alltogether, you're going to miss out on
1:35:27it. Okay? You're going to forfeit it.
1:35:29So, it's really, really important. Okay.
1:35:32Now, what I say to people, just transfer
1:35:33the reserve. Just do something cruisy.
1:35:35One of my clients is in the Navy Reserve
1:35:37now. His ex patrol boats. So, once a
1:35:39year goes up to Canes, gets on a patrol
1:35:41boat for three weeks, goes fishing and
1:35:43surfing and whatever they snorkeling or
1:35:45whatever they do up there. And um and
1:35:47then he uh and he goes home. Cha-ching.
1:35:5013 grand of Dohas subsidies plus the
1:35:53plus the uh taxfree pay for the three
1:35:55weeks and gets to catch up with all of
1:35:57his old
1:35:58mates. All right, mistakes that people
1:36:00make with doas. First mistake is they
1:36:02start using it before they get to tier
1:36:04three. You start using it before tier
1:36:06three, you're going to burn years of
1:36:07entitlement at the lower rate. Why would
1:36:08you do that? So hold off, you know. And
1:36:10the other one is they get out. Don't get
1:36:12out. Just stay in the reserve. Just turn
1:36:14up to the fun stuff, you know. All
1:36:16right. When they ring you up and say,
1:36:18"We need a whole heap of non checks
1:36:19done. Can you come in? Oh, sorry. Really
1:36:21busy at work, you know. Oh, we've got a
1:36:24adventure training this weekend. You
1:36:25want to come? Sure. Yeah, I'm
1:36:27available. All right. D's lump sum. Take
1:36:30four years as a lump sum. Must have four
1:36:32years to take. Only paid at tier one
1:36:35level even if you're on tier two or
1:36:37three. So, at the moment, it's worth 27
1:36:39grand. So, we had we're up to $65,000, I
1:36:43think, in benefits. You get this on top.
1:36:45Uh there's there's 27 and a half on top
1:36:47of that. So, what's that? 72
1:36:50$825,000 this has lump sum in there it's
1:36:53it's worth a lot okay now um it just
1:36:56yeah it just keeps going right but um I
1:36:58would definitely do this the way to
1:36:59think about this is if you take the lump
1:37:01sum your do subsidy is going to run out
1:37:04four years earlier in 20 years time so
1:37:07reach in the future grab that money
1:37:09bring it to today and invest it right
1:37:11now you do have to tell them that you're
1:37:13using the money on the house that the
1:37:16properties that the loan is on right so
1:37:18you go sure Yeah, I'm going to do some
1:37:19rens or whatever, but then that's 27
1:37:21grand of your other money that you don't
1:37:23have to spend on the house, right? So,
1:37:25you spend the lump sum money on your
1:37:26house and your other money goes to an
1:37:28investment property or whatever, right?
1:37:31I just know it's not paid prior to
1:37:32settlement. So, if you need the lump sum
1:37:34to form your deposit, you got to maybe
1:37:36borrow that money from friends and
1:37:38family and then when the lump sum lands,
1:37:39I think it's eight weeks later, then you
1:37:41can um then you pay them back there. All
1:37:44right. So, should you buy or stay in
1:37:46events accommodation? Now, this is a bit
1:37:49of dead money analysis, right? It's
1:37:50cheaper to rent than buy. And uh I
1:37:53probably should update this. I think the
1:37:54the costs have gone up a bit on the
1:37:56living cost, but not by much. As you can
1:37:58see there, you know, living in your own
1:38:00home with a
1:38:01$675,000 mortgage at 6%, which is a good
1:38:04rate right now, is will cost you $48,000
1:38:07a year dead money, whereas you just live
1:38:09in a service residence for less than 20
1:38:10grand a year. You tell me what's
1:38:14smart. All right. Buy where you're
1:38:16posted. buyer is booming. Is where you
1:38:18are posted booming? Should you buy your
1:38:19own home? This is the if where you are
1:38:21posted is booming and you're up to tier
1:38:23three doas right and you intend to do 22
1:38:26or 24 years then yes buy your own home
1:38:30right and it goes something like this
1:38:33you get you post you posted where it's
1:38:35booming you sign a contract on a house
1:38:37and land package you stay in your
1:38:38service residence or
1:38:40RA that will take up probably a year
1:38:43from contract to key handover you're
1:38:46still entitled to your service residence
1:38:47while it's been built you get a free
1:38:49removal to move into the property. You
1:38:51live in the property for 6 months and
1:38:52then you get out or you get posted away,
1:38:54right? Or you might stay there for the
1:38:56whole year and just get posted away,
1:38:57right? And now you cannot use doas on an
1:39:00investment property to in the
1:39:02acquisition of the property. But you can
1:39:04you can only use doas to buy your own
1:39:06home. But then if you move out of that
1:39:08home and turn it into an investment
1:39:10property, the doas can stay on it and
1:39:12the subsidy can keep getting paid to
1:39:14that
1:39:15property. Always buy rates booming. Only
1:39:19use your entitlements when you're posted
1:39:20where it's booming. That's the first
1:39:21time you buy your own home. The second
1:39:23time you buy your own home is at the end
1:39:25of the game when you're a
1:39:26multi-millionaire and you just want to
1:39:28have a beautiful house with everything
1:39:29the way you want it. But if you buy the
1:39:31dream home early too early, you'll
1:39:33become a slave to the mortgage of that
1:39:35and you will never get ahead. Some of
1:39:37you might be in that position now.
1:39:38You've gone and bought the dream home
1:39:40but you got a massive mortgage and it's
1:39:43killing you, right? You got to get out
1:39:44of it, team, right? It's too if you
1:39:46shoot if you shoot too early, all you'll
1:39:48ever have is that house and when you get
1:39:50to retirement, you're going to have to
1:39:51sell it because you won't have any other
1:39:52assets to sell. You won't have any other
1:39:54assets producing an
1:39:56income. All right, DVA claims and then
1:39:59we are done. All right, proper process.
1:40:01Now, I just want to stress I'm not a DVA
1:40:03advocate, okay? I'm a veteran and I've
1:40:06been through the process and this is the
1:40:08world according to me. Okay, if you are
1:40:10watching this and you're a DVA advocate,
1:40:12I just want to say first of all, thank
1:40:13you for volunteering and being an
1:40:15advocate. Anyone who volunteers to be an
1:40:17advocate is a good person trying to help
1:40:19their fellow veterans. Now, the first
1:40:21step is to get a great advocate. Now,
1:40:24just like there are bad school teachers
1:40:26and good school teachers and bad doctors
1:40:28and good doctors, unfortunately, there
1:40:30are good advocates and some not so good.
1:40:34And it's a we don't want to offend our
1:40:36fellow veterans and we don't want to
1:40:38upset anyone. So we just need to be
1:40:40subtle about it and sus them out first,
1:40:43okay? Because their competence has a
1:40:45direct relationship with how much money
1:40:47you're going to get, okay? And that
1:40:49money is money that you're going to
1:40:50invest to look after you and your wife
1:40:53or your or your husband and your
1:40:55children. Okay? And offending an
1:40:58advocate is not not trying avoiding
1:41:00offending an advocate is not more
1:41:01important than looking after your
1:41:03family. Right? So just obviously don't
1:41:05be rude, but just sus them out first.
1:41:07And even like a job interview, maybe
1:41:08interview two or three. Ask around. If
1:41:10you know someone who's got a really good
1:41:12outcome, ask them. All right. Now, a
1:41:14couple that I that I recommend, Veteran
1:41:16Health Center, Veteran Benefits
1:41:18Australia. Um I personally use Slater
1:41:20and Gordon lawyers. Um Pia Anderson. PIA
1:41:24Anderson. Now, if you want to use Pia,
1:41:28write this down. Slater Gordon.com.
1:41:30Okay, that's their website. Go to their
1:41:33website contact us form say I'd like
1:41:36then you say I'd like to talk to Pia
1:41:38Anderson about DVA Damian Patterson
1:41:42recommended her right the reason why you
1:41:44recommend me is not I don't get any
1:41:47kickbacks whatsoever from them it's un
1:41:49it's unethical for them to give me any
1:41:51kickbacks because they have to be
1:41:52completely objective and act on your beh
1:41:54as a law firm right however if they know
1:41:57that I sent you they're going to make
1:41:59sure that you get priority and get
1:42:01looked after because they want me to
1:42:02keep sending people. They just can't
1:42:04publicly admit that. But Pia is
1:42:07fantastic and she's the one that got me
1:42:08the outcome in conjunction with my
1:42:11fantastic doctor. All right. Next step
1:42:13is to confirm all your possible claims.
1:42:16Okay. Before you go shooting off claims,
1:42:18go and make sure that you've identified
1:42:19every possible one. Now, first is to
1:42:22review your med docs. Now, your med docs
1:42:24are actually kept electronically and
1:42:25there's a form your advocates know they
1:42:27can fill it out and you'll get it sent
1:42:28in the mail. Print them all off. go
1:42:31through page by page to find it. Now,
1:42:33the first myth about DVA claims is that
1:42:35if it's not in your med docs, you can't
1:42:36claim it. That is not true. Of my 14
1:42:39accepted conditions, only seven were in
1:42:41my med docs. Right? Then do a full
1:42:44medical review of an ex-military GP. So,
1:42:46all those doctors you served in the
1:42:48defense force with, where do they go
1:42:50when they get out? Most of them go and
1:42:52become GPS. That's the sort of person
1:42:53you want. Why? Because they've served
1:42:55themselves and they understand. My GP is
1:42:58a legend. He um was a digger first and
1:43:00then he got out and studied medicine and
1:43:02then got back in as a doctor, right? Um
1:43:04but he gets it and he knows how it all
1:43:06works. But he said to me, "Dam, you got
1:43:08to come in 2hour appointment." I said,
1:43:09"Two hours?" He goes, "Mate, we got to
1:43:11do a thorough like top to bottom talking
1:43:14about psych, sleep, alcohol,
1:43:17everything." And he goes, "You know all
1:43:18those forms you filled out when you're
1:43:19in the army for your med reviews?" I was
1:43:21like, "Yeah." He goes, "Well, this time
1:43:22we're going to fill them out. We're
1:43:23going to tell the truth." I was like,
1:43:24"Ah, okay." you know, so um anyway, go
1:43:28through, identify them, then gather all
1:43:30your evidence. Now, part of another one
1:43:32of the myths is it takes two to three
1:43:34years for your claims to be approved.
1:43:35That's true and not true. Some claims
1:43:38are going to go through in 3 to 6 months
1:43:39if they're straightforward and easy. The
1:43:41more complex ones might take two to
1:43:43three years, but one of the biggest
1:43:45delays is that right there, specialist
1:43:46appointments, getting to the specialist.
1:43:48Sometimes you got to wait 12 months to
1:43:50get in front of a good psych. Okay? If
1:43:52that's what happens, sure, make that
1:43:55appointment with the psych. Then ring
1:43:56that psych office and say, "My name is
1:43:58Bob Smith and this is my mobile number
1:44:01and I am like a coiled spring to fill
1:44:03any vacant appointments that come up."
1:44:06So if anyone falls over, doesn't show
1:44:07up, call me and I will be there, you
1:44:09know, and um and then do that. But also
1:44:12go looking for a second or third option
1:44:14and see if they can get you in sooner
1:44:16because that's a big part of the delay
1:44:18is getting in front of the specialist.
1:44:20The specialists then write all their
1:44:21reports. The advocate will collect all
1:44:23those and then you submit your claims.
1:44:25Now, some advocates disagree with what
1:44:26I'm about to say. But I believe you
1:44:28should do it in two ways. I believe you
1:44:30should all your claims that are
1:44:31straightforward and going to be approved
1:44:32easily. Put them in first. Put them in.
1:44:35Get some money within 3 to six months.
1:44:36Take the financial pressure off
1:44:38yourself. Get rid of all your bad debts.
1:44:40Get some cash in the bank. Have a bit of
1:44:42a buffer. If you got a bit more, maybe
1:44:44go buy a property or two. But make sure
1:44:46you get just keep take the stress off
1:44:48yourself first. then do the second wave
1:44:51and that's the and then get the big
1:44:52money in on the second wave, right? Um
1:44:55the reason why and I've had people say,
1:44:56"Oh, D, you just want people to buy do
1:44:58their claims so they buy investment
1:45:00properties." And I'm like, I thought
1:45:01about that and I thought, well, yeah,
1:45:03yeah, that's true. I'll tell you why.
1:45:05Because I've got veteran mates, too. And
1:45:06I've seen many of them piss all their
1:45:09money against the wall, wasted on crap,
1:45:11and they got mental health issues, they
1:45:13got troubles getting back to work and
1:45:15things like that, and then they waste
1:45:17all the money, and then they end up with
1:45:18nothing. the best thing those people
1:45:20could do is go put it into a property,
1:45:22get it all locked up in the property and
1:45:23then have that property there so that
1:45:26they don't spend the money, right? And
1:45:28um but not only that, I want to see my
1:45:32fellow veterans succeed financially. I
1:45:34don't think that you should have to be
1:45:35poor because you serve the country. I
1:45:37think you should be able to be wealthy,
1:45:39serve a country and be wealthy. I don't
1:45:40think it should be a choice. All
1:45:43right, that's the DV8 claims. Right,
1:45:46third last slide. This is real data here
1:45:49on the slide team and uh left hand
1:45:51column is the first initial. I deleted
1:45:52the rest of their names. Second column
1:45:54is the address of the property. Third
1:45:55column is the year they bought it. You
1:45:57can see the purchase price, current
1:45:58values. Now on the right hand side, you
1:46:00can see their capital growth of those
1:46:02properties. That's actually not how much
1:46:04money they really made though. That's
1:46:06just the increase in the value of the
1:46:07property. But like I used the example
1:46:09earlier, let's pick let's pick the worst
1:46:11line on there. The worst line was 24%.
1:46:14Right? So, let's work out how much that
1:46:16would be uh in actual return on their
1:46:18money that they put in. So, the 24% they
1:46:21bought the property for 531. So, that's
1:46:23a $53,000 deposit. 531,000
1:46:27uh minus
1:46:3053,000. They've got a mortgage of $478,
1:46:33right? 478 mortgage. That property is
1:46:36now worth 660. So
1:46:39660 minus 478 is they got 182 grand
1:46:44worth of equity. Okay, 182 grand worth
1:46:47of equity. Now, how much did they have
1:46:50to put into the property in the first
1:46:51place? $53,000 deposit, maybe another 20
1:46:5422. Let's say they put 75 grand in and
1:46:57they bought that property 3 years ago.
1:46:58Their 75 grand is now 182 grand. Okay,
1:47:02so that's basically, you know, 200
1:47:05something% return. Uh but 250% return on
1:47:09their money in 3 years. 250% not 7%
1:47:12peranom like your shares get like screw
1:47:15shares eh like unless you're going to
1:47:17get on to the next Uber or something.
1:47:19This stuff is powerful and this is the
1:47:21important thing that you remember that
1:47:22leverage factor. All right. If you want
1:47:25to copy that book you just got to type
1:47:26in book please. What you see there book
1:47:28please and your correct postal address.
1:47:30I do not know your postal address. Um
1:47:32you haven't had to provide it to me yet.
1:47:34If you would like the team to send you a
1:47:35copy of that book, just type in book
1:47:37please and your postal address and we
1:47:40will send it to you. Last slide, next
1:47:42step, book yourself in team. Um don't be
1:47:45sitting there going a you know like just
1:47:48act we my team are solid, right? You can
1:47:51trust them. They're competent. They're
1:47:53good people. They are going to look
1:47:54after you. Okay, you don't have to
1:47:56commit to the whole property uh the
1:47:58whole you know like the whole process.
1:48:00You don't have to go and sign a contract
1:48:01on a property tomorrow. There's a very
1:48:03deliberate process we go through step by
1:48:05step to take you through and we do it at
1:48:08the pace you're comfortable with. Okay.
1:48:10Now, that starts with that strategy
1:48:11session where we go through your
1:48:13personal goals um and what you what
1:48:15you've achieved so far. Full review of
1:48:17your situation. You can do far more than
1:48:19you think you can and then put a plan
1:48:21together to achieve your goals. Full
1:48:23service and support normally cost $4.97.
1:48:26If you book off the webinar, it cost you
1:48:28$2.97. If you use the QR code there in
1:48:30the corner and book yourself in, you
1:48:32will only be charged 247. Okay? 100%
1:48:36money back guarantee. All right? You'll
1:48:38then be fully supported by your team.
1:48:40And if you surround yourself with the
1:48:42right people and take action, you will
1:48:43succeed. Okay? But if you just surround
1:48:46yourself with the wrong people and do
1:48:47nothing, what do you reckon is going to
1:48:48happen? It's really that simple, right?
1:48:50Get the right people around you. Take
1:48:51action.

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