Ever wondered how to FAIL at building a successful property portfolio?
Want to learn how NOT to build a weekly passive income of $2k?
If so, then this episode was made for you! š
This weekās episode gives you a step-by-step guide on how never to take action or build a weekly passive income of $2k.
From the worst ways to approach the property market to the incorrect beliefs you should hold about investing, weāre breaking down this episode into the 4 crucial ways you could go wrong.
To avoid taking these wrong turns (and, in all seriousness, avoid making these mistakes), listen in now!
P.S. As mentioned in Ben's "What's Making Property News", the Property Investors Council of Australia (PICA) needs support! As a not-for-profit organisation representing the everyday property investor without a voice, any membership or donation helps. Become a member, donate or find out more today >>
Free Stuff Mentioned
LISTEN TO THE FIRST 20 EPISODES HERE >>
MOORR MONEY MANAGEMENT APP:
š Apple: https://apple.co/3ioICGW
š Google Play: https://bit.ly/3OT86bW
š Web platform: https://www.moorr.com.au/
FREE MASTERCLASS:
- How to Build a Property Portfolio and Retire on $2,000 a week >>
FREE BEST-SELLING BOOKS:
- The Armchair Guide to Property Investing
- Make Money Simple Again
FIND US HERE:
- Website
- Instagram
- Facebook
- Youtube
Ever wondered how to FAIL at building a successful property portfolio?
Want to learn how NOT to build a weekly passive income of $2k?
If so, then this episode was made for you! š
This weekās episode gives you a step-by-step guide on how never to take action or build a weekly passive income of $2k.
From the worst ways to approach the property market to the incorrect beliefs you should hold about investing, weāre breaking down this episode into the 4 crucial ways you could go wrong.
To avoid taking these wrong turns (and, in all seriousness, avoid making these mistakes), listen in now!
P.S. As mentioned in Ben's "What's Making Property News", the Property Investors Council of Australia (PICA) needs support! As a not-for-profit organisation representing the everyday property investor without a voice, any membership or donation helps. Become a member, donate or find out more today >>
Free Stuff Mentioned
LISTEN TO THE FIRST 20 EPISODES HERE >>
MOORR MONEY MANAGEMENT APP:
š Apple: https://apple.co/3ioICGW
š Google Play: https://bit.ly/3OT86bW
š Web platform: https://www.moorr.com.au/
FREE MASTERCLASS:
- How to Build a Property Portfolio and Retire on $2,000 a week >>
FREE BEST-SELLING BOOKS:
- The Armchair Guide to Property Investing
- Make Money Simple Again
FIND US HERE:
- Website
- Instagram
- Facebook
- Youtube
Alright, folks, welcome back to the Property Couch podcast, and today we are going to give you a blueprint on exactly what you need to do to fail to build a property portfolio that gives you $2,000 per week. No, you did not mishear that, folks, we're going to show you how to fail. How are we going to do it, then?
Speaker 2:Fail, bryce fail in the sense of wrong strategy, fail with the wrong property, fail with the wrong mindset and fail with the wrong network. It's as simple as that, bryce, and that's why you need to hang around for the rest of the show.
Speaker 1:Folks, check it out, you'll see why Charlie Munger has got a lot to answer for. Let's rip into the show.
Speaker 3:Welcome to the Property Couch where, each week, you get to listen to two of Australia's leading property and money experts Bryce Holdaway, co-host of Location Location, location Australia on Foxtel's Lifestyle Channel and co-host of Escape from the City on the ABC. Ben Kingsley, chair of Property Investors Council of Australia and a back-to-back winner of the Property Investment Advisor of the Year Award, and both are partners of the multi-award winning Empower Wealth, co-creators of more the Freelife Style Design Act, as well as bestselling authors of the Armchair Guide to Property Investing and Make Money Simple Again. Stay tuned as they bring you the Insiders Guide to Property Finance and Money Management.
Speaker 1:Hi folks, welcome back to the Property Couch podcast and welcome back to you too, mate. How's your week been?
Speaker 2:Oh, mate, you know just that time of the year where you can see just a little bit of the horizon you know, and you're sort of thinking, yeah, there's a lot of change that's going to come around. So you know, I was thinking abundance. I always like to think, you know, no anchors on me, Try and move forward. So I'm up and about at the moment.
Speaker 1:You're up and about. So particularly given two days ago we got a nice little reprieve from the Reserve Bank Board to say folks, we're keeping it on hold. So I think there's a collective sigh of relief across the country around that bend?
Speaker 2:Yeah, there is. The interesting thing, though, is that, you know, she probably set the agenda to sort of say, oh, not quite a rush at the moment to be cutting rates, so that's probably the only other undertone that was in her notes there. So it'd be interesting to see how she plays that out over the course of the next couple months.
Speaker 1:So of course, birthday month for us here on the property couch, so we've been giving away some free gifts. Started last week, got to say a few people put their hand up for a free report, ben.
Speaker 1:For those of you that are hearing right now, you went what Huh? Free reports. If you go to the propertycouchcomau forward slash property report, you can get your hands on what I think is class leading data. Ben, it's not some generic scraped from the internet data, I promise you folks. It's been through our algorithms and it's been through the Brains Trust and here it comes. Check it out yourself, we'll see what you think. Am I? Is there a bit of hyperbole around that, or is it actually true? Is there actually a bit of depth to these free reports that normally you'd have to pay 40 to 50 bucks for Ben, but during birthday month you don't have to pay?
Speaker 2:You can get them for free. Yeah, I mean, obviously, you know this is our gift to our community. We love sort of helping educate and inform you in terms of what's available out there. And these reports, yeah, they go a little deeper than most other reports you get a lot of, really, you know, the best part about it for mine is the historical nature. So you send in all of the charts you're seeing the trend lines and that sort of should inform you in terms of the sum of those parts and which way they're trending in terms of the analysis you need to look at. So, yeah, check it out.
Speaker 1:Check it out, folks, even if you're not in the market right now. Just go and go and check out your own suburb. It's just going to have a look, just a little squeeze and see what you reckon. The property couchcomau, forward slash, property report, or one word, or lowercase bench It'd be easy to remember property report and you can go get a freebie and just one little heads up for our community too. Next week, you and I are going to launch our property market outlook for 2024. And as part of that outlook, ben, we're actually going to look in the rear vision mirror. We're going to go back and say what did we predict in 2023 at the same time last year, and we're going to tell you the bits we got right. We'll be pretty proud about that. We're also going to tell you the bits that we might not have got right.
Speaker 3:Ben, I can't say the W word.
Speaker 1:But maybe we'll tell you about the bits that we didn't quite get. So for full transparency as well. So stick around for that, ben. But today's episode is going to be a ripper because we wrote a book. The down check got a property investing. Sub headline is this how to retire on 2000 bucks a week. Well, I'll guess what folks. Today's episode is how to fail to retire on 2000 bucks a week. There you go. We're going to show you how to fail. We're going to show you how not to do it, or will be revealed shortly. But before we get there, ben, my mindset minute theme today is around.
Speaker 1:I think you and I have been having a conversation lately about Steven Bartlett. Ben from the Dior over CEO. He's got a podcast. I watch his some of his episodes on YouTube because he's got a really good production and I was watching a behind the scenes blog that he did recently because I'm actually intrigued by the quality of his guests, the level of preparation, the composure that he has in these interviews Despite the incredible demands on his time.
Speaker 1:He runs several multimillion dollar property, not property, several multimillion dollar companies. See how that's just trained thought there, ben. But highly successful in demand is on Dragonstone. Lots of books to his social media speaking engagements and I'm like, as you and I are practicing our craft of being interviewers, ben, I wanted to see what he did, and what I found interesting is I picked up that he was in. He has an iPad and obviously has a Kindle or some version of a book reading app, but then on the other side he has an Apple Pen and he's actually scratching down notes. So he's reading the book and scratching down notes immediately because I've got a Kindle. I'm probably more digital and I listen to the audio book and read the Kindle at the same time. But I thought, hey, this guy's at an elite level. I'm going to try and implement some of the things that he's doing on, because he then gets to write the notes from the book what he's reading. I'm sure he has part of that as prep for his podcast.
Speaker 1:So got me thinking about the tiers of return on investment that you get from reading a book. So come up with a list for folks to ponder and let me know if you think I've missed anything here, ben. But so here's what I think. The first tier as a return on investment of a book is Number one, just passive reading. Okay, you read it, you take it in, and Morgan Housel says in one of his blogs that if you can come away with two or three key concepts from a book and that's all you can remember, that's a pretty good effort, because in the moment you remember everything, but when life gets on, if you remember two or three key concepts, that's good. So that's what happens.
Speaker 1:First level, passive reading. Second level is highlighting, so it's a bit more active, obviously some bits that you can go back to. Clearly, in the Kindle version you can go straight to all your highlights and get there straight away. There's another app that merges all your highlights and you can dish it up as a feed, which is pretty cool. So that's our number two. Third level is taking notes, which, on the Kindle, I do that, ben. If something comes up, I hit the word, I write some notes that you want to remember later. The fourth, return on investment, is a book where you actually implement the ideas that you've highlighted and taken notes on. And then number five, ben, is teach someone, right.
Speaker 1:So if you've actually read the book you've passively read it and you've highlighted it, you've taken notes, you've implemented the ideas. The fifth return on investment you can get from a book is to teach someone, because it's in the teaching as you and I know very well through 480 episodes of this podcast that it's in the teaching where you sharpen your focus and make sure that not only did you catch what was in the book, but you've had to be able to filter it through and be able to explain it in a way that someone else understands. So, Ben, five return on investments that I see, five tiers of return on investment for a book. Did I miss anything?
Speaker 2:No well, I think it's a great list, maybe just if I have to add one to it. I'd probably just say it's a return resource. In other words, you can, whether it's an audio book or whether it's a physical book, you can go back to it. So basically, you can circle back if you need to as well. I like it, that's about it, but otherwise.
Speaker 1:I love it. I love the list. People say leaders are readers and everyone goes. I'm going to read 52 books this year, one a week. I used to think that was aspirational. I probably have changed over time now.
Speaker 1:I reckon, if you can get four or five books read and then go through those tiers of investment and then to your point which I think is a really good one actually go back. So instead of reading a lot of books, read a few books a lot of times, I think is probably the way that you can actually get tier number four, which is implementing the idea. So there you go. Folks Ponder that. Oh, and, by the way, if you want a book to practice on Ben, you can go to the armchairguidecomau. You can get a free book there, I believe. If you pay for postage, we'll show you how to retire on $2,000 a week. But having said that, ben, today is all about how to fail to retire on $2,000 per week. Who wants to know that? Well, let me tell you where this inspiration came from.
Speaker 1:Obviously, the late great Charlie Munger. This episode is brought to you by him and his preference for inverted thinking, because he was inspired by an algebraist, carl Jacobi, who said invert, always invert. So he was so influenced by Jacobi that he sought good judgment mostly by collecting instances of bad judgment, then pondering ways to avoid such outcomes. It's really, really critical thinking. I love it.
Speaker 1:So I thought let's use that as an inspiration for how our listeners, as they set up for 2024, if they follow the advice that we're about to share in this episode and we're going to have been fun with it we can guarantee that they'll file this year. So here's a surefire way, folks. So rip in. And so the way that the way that you get property investing and setting yourself up for success right is you need the right strategy, the right property, the right mindset and the right network right. Get a combination of those four superpowers. Well, clearly, we better show you what the wrong strategy is. So, ben, we're going to kick it off All right Under the the category of let's have some fun with this price.
Speaker 2:Let's have some fun.
Speaker 1:Yeah, you bet we are so wrong strategy is number one is here's how you fail Ben you sell now, whilst the headlines are saying that times are tough. That is, that is something that everyone should do, because it's clearly following the crowd and making sure that if it's, if it's in black and white or it's got some clickbait and it says you should sell Ben, you should follow it. So I think that's good advice.
Speaker 2:Tough times, tough tough times. You know, we see it all the time. It's going to be tough times. I'm going to panic, I'm going to sell. I'm not going to look at my situation. Yeah, I can't see why you wouldn't, why you wouldn't follow that advice. Price Like, why wouldn't you just like nothing? You know everything last forever, doesn't it? I mean, nothing changes. You know everything is the static. So so there won't be any passing of this economic cycle. There won't be interest rates whenever come back down. So, yeah, I think it's a great idea. Let's. Why don't we just sell, sell, sell, tough times.
Speaker 1:There you go first. First tip from us is sell now, whilst all the headlines are saying the times are tough. Number two is I want you to hit this. One is really important. So I want you to lean in on this one, but I want you to wait until the crowds come back before you make a move, because that'll be confirmation, ben. Yeah, I don't want anyone to sort of look around the corner and go interest rates more likely to go down towards the end of the year on on clearly a couple of years of limited stock, and so what I would prefer to do is not buy now while whilst conditions seem relatively more straightforward not saying easy, ben, because our team on the ground knows it's not straightforward now but but I'd prefer you to just wait so that not only can you pay more, you can, you can increase your stress levels, increase your anxiety level, and and then what happens, ben, is is because you get frustrated on missing out on a number of properties in a row. Then you'll, then you'll buy a rebound property. You just go stuff it. I'll just buy whatever I can put my hands on, because everyone is in flow and wants to buy. So therefore, very, very important that you wait until the crowds come back, then.
Speaker 1:Third thing I want you to do is I want you to, I want you to put your head in the sand. I'd love for you to. I'd love for you to not think about where the future might be. I'd love for you to not think about the fact that in 2024, clearly, interest rates are a bit high Stage three tax cuts are being played with. The Labor Party can't rule out whether they're going to touch with negative gearing, all that sort of stuff. I want you to just, I just want you to just focus only on the here and now. I don't want you to focus 10 years from now. I don't want you to focus 20 years from now. I don't want you to focus 30 years from now, because a solid exit strategy is not important. And look who plans for the end when you're just starting anyway, ben Like.
Speaker 2:I just just go with the flow, bryce, like what would I want to plan for anything, I mean? I mean I'm just, I'm just making moves, I'm spontaneous, it's just. What would it? What would there be any value in doing anything like that? I just I'm struggling and dissent to understand what you're talking about, bryce.
Speaker 1:I hear you, but I hear you. Hey, give us number four, Ben, because I reckon you relate to this one.
Speaker 2:Well, you leave it up to the government, bryce, to look after your retirement. I mean, let's face it. I mean all we need to do is they just need to keep giving us money, cutting his checks, throwing all the services, keep printing money, keep racking up deficits, and the government absolutely are going to take care of us. You know that's the job. I mean they just do such great work. I mean you know they're efficient in everything they do. You know something never. You know they never go over their plans of timeline and delivery or cost.
Speaker 2:They just got it together our government, and so why would I need to be self retiring when I've got the government as my safety net? So yeah, that's what I'm going to do. I'm just going to basically, I'm not going to leave it to chance. I'm going to leave it to the government to look after their incredible stewards of money.
Speaker 1:Ben, they are incredible stewards of money, and here's what we do have faith in the government is they won't change the rules.
Speaker 2:So, therefore, therefore, you have said I know they just changed the rules recently and no, no, no, no, it's a one off and I know it's not a super standing government.
Speaker 1:And before that, last year, I know they tinkered with the super rules as well.
Speaker 2:Ben so, but yeah, and I know Tony Abbott was never going to cut funding to the ABC or SPS or you know whatever the tax cuts were not going to be in.
Speaker 1:So we're heading into very, very dangerous territory here, Ben. So we might pull the hand break on where we're going on this. But both sides of politics, hopefully Both sides of politics, yeah. But number four, ben, I love it Leave it to the government to look after your retirement. Just save your weight at the time, and it's probably the summary of that one Save your way and hope for the government. Hey, number five, ben, is play the short game and invest for now, not tomorrow. So some areas who let's call it Melbourne, who have had haven't had a lot of positive publicity of late. Just ignore the fact that it's a big metropolis. In 10, 15, 20, 30 years, it'll still either be the number one populated city in Australia or the second populated, depending on how that race goes. Yeah, just avoid that. Just be purely focused on the fact that right now, there's a lot of negative sentiment around certain areas, for example Melbourne. So play the short game, invest for now. Don't worry about where you need to be in a decade or two decades time. It's all about now.
Speaker 2:Yeah, I mean, look at Melbourne. I mean, while I, yeah, the record levels are dead, the economy is faltering, everything's going, but so why would I? Why was that a problem for me? I mean, ultimately, once the marketplace really struggles and then the next government of the day then decides to fix a few things and reconnect with investors, and then all of a sudden, we're actually. What am I saying? Yeah, bro, am I actually endorsing Melbourne? My job is to not endorse Melbourne, is it? Yeah, no, don't go anywhere near Melbourne, guys, in the short, medium or longer term. I think you know, as one of our international cities, why would you expect to get a return in that market over the short, medium or longer term?
Speaker 1:Yeah, yeah, because I mean we're playing a long game here, so just play the short game. That's hateful.
Speaker 2:Just play the short game.
Speaker 1:So, that's under the wrong strategy. Ben, let's go to the wrong property All right.
Speaker 1:So if we want to make sure we fail, we've got to make sure we have the wrong strategy. So we've just given you some clues. We've given you five things you can focus on to make sure you have the wrong strategy Now in terms of the wrong property. Ben, there's a few things. I'll kick it off and then you can run through the list, but what I want you to do, number one, is I want you to focus on property appeal alone. That's it.
Speaker 1:What I want you to do is have location, location, location as a guide only. In fact, probably just focus on the fact that it's a television show. Don't worry about it's having any sort of meaningful thesis in the in the investment landscape, because location really is probably a little overrated. And I'd also want you to buy what you live in, not what the market wants. So if you're a family that requires four bedrooms and you were to buy a house close to the city that only has two bedrooms, I want you to project onto the market that, because you'd never lived there, no one else will ever live there.
Speaker 2:Ben, I reckon that's true. I mean, the world is on the center of the world, so, and my family's the center of the world, so what would I expect that there are other markets out? I just know. I'm just I'm very focused on the appeal of that property. I don't know what you're talking about there.
Speaker 1:Yep, no one. No one would ever rent a two bedroom period home five kilometers from the city, because where would they put their family, or maybe that particular segment and that demographic might not have it. But I'm not here to succeed Ben, we're here to file. So what? I want you to do is what I want you to do is I want you to project 100% what you live in, not what the market wants. When you focus on that and ignore location. What else should we do Ben with respect to the wrong property.
Speaker 2:Well, speaking of ignoring things, Bryce, scarcity really has no value, like I you know, like in terms of things that have envy and status related, they have no value. I mean, mate, handbags, handbag cars, a car, a house is a house, a boat is a boat. So there's, you know. I don't know what you're talking about. This is overrated.
Speaker 1:That happens in Europe. There's no status in Australia. Surely we don't want to be individualistic, we don't want to live in unique property?
Speaker 2:do? We People aren't house proud Bryce in this country. I mean, everyone's got one, so you know it's just. There's no value in that type of scarcity. It's a whole idea of. You know the veblam effect and you know that things are differently priced. That's all marketing. You know people won't buy into that marketing. They won't have any emotional attachment to property. I don't know what you're talking about in terms of people paying a premium for assets that that basically have scarcity. You just move on, bryce. You're boring me. This is, this is all ridiculous.
Speaker 1:People prefer to be the same. They don't want, they don't want to live in anything unique. So I like that, ben. Third one here under the wrong property, ben, is just don't research right. Impulsive decision making ensures you won't get bored. Imagine, imagine the excitement that you can get from just throwing a dart and just buying whatever. Whatever the data lands on just random, random chance, random choice. I mean, we all live in a house. Surely we know, like we should know, property investing inside out because we live in a house, ben or no, we live in a dwelling. Sorry, we all live in a dwelling. Not everyone lives in a house. So therefore, surely there's not much to know other than gut feeling and throwing data.
Speaker 2:Made. I'm a bit confused by this particular one. I mean, don't you just basically walk up to an auction and drop a million bucks side unseen and side unreseached, and probably I mean surely doesn't everyone do? That Like. Isn't that part of the parcel of what we do? I mean what would I do?
Speaker 1:It does remind me of that. Selling Houses Australia episode where someone actually had that pen.
Speaker 2:Well, they might have had 20 million behind them. So anyone of that is certainly, but you would, no, no, no, no, look, research is overrated, bro. So, at the end of the day, just buy anything and just, you know, give it time, give it time.
Speaker 1:Research is definitely overrated. So, folks, so in the wrong property, focus on property peel alone. Ignore scarcity. Whatever you do, ignore scarcity. And number three is just don't research. Just fly by the seat of your pants, Ben. Just buy anything. And I know property, bro, I know property, All right, so okay. So we've got the wrong strategy. Now help people get the wrong property. The next thing we want them to do is have the wrong mindset, and this is good. I reckon this plays into this will play into a lot of people's lanes, Ben, because you know it's easy to look for what's not gonna work. So I'll kick it off with treat your beliefs like they're set in stone, Love it. So never be open to new information or look to change any of your beliefs. And this is what I love, Ben, and I think this is whatever I can take to the bank. Your truth is your truth, which cannot be denied. If it's actually a reality to you, it's a reality to everyone in the marketplace.
Speaker 2:That, therefore, it must be true Based in fact, bryce, what are you talking about? It's not fake news, it's my news. It's everything. It's absolutely all about I've done the research I've done. It's all based in fact. You know, don't tell me that I'm wrong. I mean, that's my truth. I mean you know it's seeing is bleeding, so that's it. So, I don't have any other views on that. Just, we just need to move on. I mean, ultimately, my mindset's strong, I know exactly everything about everything. I'll just move on.
Speaker 1:Yeah, so folks treat your beliefs like they have no movement whatsoever. Ben, what's the next one?
Speaker 2:Next one is one of my favorites, bryce. It's procrastination. I mean, obviously I don't suffer from it, right? Like, ultimately, I'm just a mover and a shaker. I'm just you know everything in terms of perfection. I'm just gonna move through that and find the best thing I can possibly find. So I just, you know, don't wanna know, but can't find it. Well, I'm just gonna keep waiting because it's coming right. I've only been looking for 48 months, but I'm close. I'm close to buying that property. I'm close. I just know the next one I reject brings me a little bit closer to the one that I'll reject. Afterwards You'd say that in a time's not important for us. I mean, I've got all the time in the world. I don't need to worry about the impact of time, cost of money. I don't need to understand the power of compounding. I don't. I'm just, it's all good, I'm just looking for that perfect property. So I'm happy to procrastinate.
Speaker 1:One of my favorite stories in the business. Ben is one of our advisors. Joel received an email from a client, came in, wanted to talk about getting a plan, and said I think it was along the lines of hey, listen, I reckon I should do this. If I don't do it any years time, you can have the keys to my future. I've butchered that a little bit, but it was pretty much like hey, five years later, sends an email to Joel and says mate, it's been five years, it hasn't been 12 months. I think I better give you the keys now to my future. But we're having some fun and we're playing in this episode, but it really is astonishing the amount of opportunities that we find to procrastinate. So I'm obviously just taking a little side note here, because it is the number one derailer of success, bar none.
Speaker 2:It's uncomfortable listening, isn't it? I mean it's uncomfortable for you and me to basically work through these and say these things out of our mouths. So I mean, of course we're doing it all in jest and sarcasm, but it's just uncomfortable because it just doesn't feel right in terms of but, if and if. That's the response you're also getting halfway through. What we're doing here is like yep, cause we all do, I mean. I mean I just love procrastination from time to time on a few things, so, but it's just trying to let you know. This is how you fail. So you've got to be able to overcome these things, and that's the power of a right mindset.
Speaker 1:Yeah, it's taking action. Another thing with the right, the wrong mindset is just seeking instant gratification, the YOLO movement, ben, which was before. I miss that generation, ben. I'm just lucky I've got young kids now that I know what YOLO means. But you only live once. So it's the need to satisfy all of our desires and our impulses today to make sure that we are having the best life we can have, which I love.
Speaker 1:The saying that you know, happiness is actually relatively easy to achieve. The problem is is when we start comparing with others, it gets difficult. So instant gratification means that we can compare ourselves to others. We can have temporary highs, these instant gratifications. We can buy stuff on credit. We can buy fast cars on credit. We can buy. We can actually frame up holidays and just continually go on holidays and get the filters right and the frames right within the photo so that we can put it on Instagram so that people can see what that looks like. So that's really where I want people to lean in on the instant gratification. Try and impress as many people as you possibly can about the perception of your life.
Speaker 2:Yeah, and Bryce, don't worry about retirement, that's just ages away and I just start thinking about that in your 50s, right, yeah, there's no material value in the power of time and compound. I mean, it's just dismissed one of the superpowers of the world. Just ignore it completely. Just start when you're 50. What?
Speaker 1:so to that point, ben, what would Warren Buffett know Like? If you ignore the fact that he's worth 120 billion. Put that aside, what would he know? He says that compound growth is the eighth wonder of the world, and so what authority does he have to speak that over people? There's a bit of lack of responsibility, because he may influence a number of people, and if he says that people might believe him and they take it to heart, they won't be able to fail.
Speaker 1:So there you go folks For the wrong mindset. Treat your beliefs like they are set in stone, procrastinate, procrastinate, procrastinate and seek instant gratification. They are three ways that you can ensure that your mindset will set you up to fail to achieve $2,000 per week. All right, Ben. Last thing we want to cover is on the four pillars of how to succeed is how not to succeed, and that's the wrong network. Get yourself the wrong network, Ben, so kick it off for us.
Speaker 2:Yeah, I mean obviously, bryce. I'm not sure that I need to take advice from people who specialize in a particular area and have subject matter knowledge in years of experience, in some cases decades of experience. I'm far better off. My friends and family care for me more. I can trust them more on a subject matter. I mean, bryce, they've bought a property. My mom had bought a couple of properties. I think they've bought two properties ever since I've been alive, for my 53 years or whatever it is. So they've got experience, they've got runs on the board. I'm sure they've got some good advice for me. So I'm just going to listen to them. I don't understand this whole concept that experience advice is worth money. How do I reconcile that? I just don't understand.
Speaker 3:And finally, bryce, my mates, they've got my back they're the people they love me.
Speaker 1:They don't want to see me. They're the best vaccine in primary school, mate. Why would they stop having your back now? That's right.
Speaker 2:So I'm just going to look, I'm going to bypass all of the knowledge that's out there and I'm just going to trust my mates, my mom and dad, my family members and my gut in terms of how I take this forward and that's how I'll you know how to tell a role.
Speaker 1:Because what would help here is if you ignore the fact that people don't want the best version of you. What they want, the best version of you that serves them. So if you ignore that, that'll be helpful. And if you ignore the fact that people want they really want you to do well, they just don't want you to do better than them. So if you, if you, if you keep those two mantras in mind, that'll help you with knowing that you should always be relying on your mates to give you the best advice. So family and friends take advice from them. So that's number one.
Speaker 1:Number two is this is a big one for me to ensure that we achieve the goal of failing is self-manage your properties, because property management is a bit overrated because really all it is is collecting rent. There is, like I know the property managers talk about what it takes to find the right tenant and all the databases and all the legislation they need to be across and the paperwork and the timing and the ramifications and trying to get a tenant. I know they talk a big game around that, but let's be honest, I could probably put an ad up myself to find a tenant and I appreciate I have a job and a family and a life, but I could probably find time to go and screen the tenants, show them through and then, once all that's done, they just put the money in the bank account anyway. Right, so cut out the middleman.
Speaker 1:Cut out the middleman. Why wouldn't you cut out the middleman? Why would you believe the propaganda that the property management industry talks about how there's a whole ton of stuff that they do outside of just collecting the rent? Why would you believe that? Because you can save anywhere between six and nine percent of the amount of rent that you get and put that back into your pocket. So I reckon it's better to save the money and if you can collect the rent yourself and I'm staggered if you could find a reason why you would get a property manager to manage your property- but, bruce, you're right.
Speaker 2:The property you're talking about in this fictitious story is like it's only six months old. What could actually go wrong? I mean, it's not like a water pipe might burst under pressure whilst you're away, or the tenants are away, and thousands of leaders of water might start from the top story and roll down into your second or bottom story. And obviously, when the tenants get home and they need emergency care, you're right on it, aren't you? You're going to drop everything. You're going to make sure that you send the emergency plumbers there who I mean? You have them on your roll index, right?
Speaker 1:You can call them straightaway, because of the volume of jobs that you give them. They're going to answer it to you.
Speaker 2:That's right. You've got good networks of tradies and all that, so, yeah, I can't see that being a problem for you at all, so beautiful.
Speaker 1:And then the last one here we want to cover under wrong network and we could go for a while. I mean, let's be honest, but I want you to neglect the importance of building inspections, right, because property investing at its purest is pretty boring, ben. Like you do a bit of work up front to make sure that you get the fundamentals right and then you wait 10 years, 20 years, 30 years. So, let's be honest, you can get very boring. It's not like shares, where there's daily feedback around share prices and returns and dividends and board movements and all that sort of stuff. Property can be highly boring.
Speaker 1:So what I love about neglecting the importance of building inspections is surprises are what makes property ownership finally exciting. Like it just breaks you out of the slow, mundane boredom of just accumulating properties for their long term benefits, right. So finally we get some adrenaline, because when you settle and then you realize that the properties need restumping, or you realize that there's a wall that really is at a critical stage, or there was some little mates in the roof that were hungry and having a little chomp on the wood or sort of foundations like that is where the adrenaline lives. Been right there.
Speaker 2:Right when you find out those after you settle. Mate, I walked through the property, I opened the door, I closed. It felt solid, Like I'm a bit confused, Like what can actually go wrong? Like what are they going to find that that my eyes couldn't see? Like you know, the plasterboard. Like you know, I don't care what's behind the plasterboard. Like, at the end of the day, there's a roof, doesn't look like it's leaking, doors open and closed, taps run. I'm sorry, mate, what are you telling me? That that's not all I need to know.
Speaker 1:Mate, that is to fail. That is all you need to know. And, let's be honest, those TV shows come on. How hard can it be? Like, do it yourself. Renovating looks pretty easy.
Speaker 2:Do it in 30 minutes and there's ads. Yeah, Like I mean, how hard can?
Speaker 1:it be, it looks pretty easy, like I mean, just because they get some tradies come on the show because they are playing a bigger game and they want the exposure that comes from playing the bigger game. So therefore, they make problems go away really quickly and there's people behind the scenes that make sure that that's, it's irrelevant, it is super easy to renovate. So if, ben, you do finally get some adrenaline that comes from property ownership and you're woken out of the boredom slumber of get rich slow and you do get a nice little surprise this is how you get that. You know, hands on, roll your sleeves up, go and renovate, because it can't be that hard.
Speaker 2:Right. So I just I mean, these are very simple ways in which you can set yourself up for failure, and so it's. As I said earlier, it's just difficult to talk about them because you want to just invert them to the right.
Speaker 1:I naturally just want to actually want to balance it, but it's actually super hard to stay committed. But no, we've given a blueprint.
Speaker 2:This isn't right through that. Look, it is uncomfortable listening, and if it felt like I'm not getting any value out of that, it's because there is some truth to all of these things that we sometimes all do from time to time that we've just got to make sure we snap ourselves out of, because what Bryce has just done there invert everything into the right order and you would have a really nice checklist in terms of the things that you should be doing, as opposed to the things you've done. So I just love what you've done, with a bit of fun in terms of how we've unpacked this framework. It's been lots of fun.
Speaker 1:And it doesn't take much for you to roll your sleeves up and get, get oh, it can be the cynical as the best man, the cynical voice on, which was, which was always good.
Speaker 1:So there you go, folks. The wrong strategy is sell now, wait for the crowds, put your head in the sand, leave it to the government and play the short game, not the long game, to get the wrong property. What you need to do is focus on property peel alone, ignore scarcity and just do not research when it comes to mindset. What I want you to do is treat your beliefs like they are set in stone, procrastinate as much as you possibly can and also seek instant gratification and as far as the people and the networks and the and the, the, the humans that you have, don't ignore that. Just just loan ranger. Try and make sure you do it as best you can on your own. So don't take advice sorry, take advice from your family and friends, self-manage your properties and neglect the importance of building inspections.
Speaker 3:So there you have it folks.
Speaker 1:There is our list. To ensure that you do fail to have to build a property portfolio this year, I've got a big one, bryce also.
Speaker 2:Do you mind if I just add it to the bottom? Yeah, it's not. It's something we often don't talk a lot about, but so I'll throw it in there. But the other way you guarantee yourself of of failing is just don't take action.
Speaker 1:Yeah, yeah, yeah, yeah, 100% that's, that's procrastinate. It is procrastination right there. Yeah, so folks, we're so clearly. At the beginning, I launched the. Charlie Munger was the inspiration, but I did a video, ben, on how to fail to build a multi-million dollar property portfolio. It was the first presentation I ever did when you and I got together back in 2012.
Speaker 1:So it's on our YouTube channel. You can go and check it out. It is by far the most watched video we have ever produced, which makes me feel warm and fuzzy on the inside, Ben. But if I take away my ego, it's because we had the word fail in the title how to fail. So everyone wants to know how to fail, so. So it's kind of a combination of Charlie Munger inverted thinking and also knowing that there is. There is a little bit of rubber-necking that we all want to do at certain times. That's sort of suggest that kind Give us a little peek over the fence on what failure looks like. And so, hopefully, folks, um, uh, we just had a little fun along the way on how you can fail.
Speaker 1:Now, good news is um, next week we're going to pivot. Then we're going to go back into the lane that we feel pretty comfortable in. Yes, and that's showing people how to succeed. So, as I said at the top of the show, we're going to do our property market outlook for 2024. We do this at roughly the same time each year, sometime in the first two, three weeks of February, once we can see some data and get a bit of a read on the market, Um, after everyone comes back from, uh, the long weekend. Uh, we, we are keen to do that. So, if I stick around for that, if this week was at one end of the spectrum, next week is obviously the other end of the spectrum, hopefully to help you make informed decisions and actually take action.
Speaker 1:Hey, my life hack today, Ben, is from a listener move reached out to me on Instagram and I've got to say, Ben, I love it when people reach out to me on Instagram. So this is your open invitation to give me feedback on anything life hack mindset, how it's impacted you, anything that you want, um, that you think would contribute positively, um, to our community. That's one of many places you can do it Right, so feel free to do that, but, um, uh, move since me, this, um, this little message, Ben, I want to do a shout out for tip that I use when listening to a podcast and a way to capture an important point, et cetera, Generally. Once finished, I will just restart the entire episode again, in particular with the property couch, having guests on, often with a lifetime of experience and expertise in one's respected field, who I am to understand, digest and action such content in one lap through. So that goes back to what we were talking about before.
Speaker 1:Ben, Instead of reading reading a lot of books read a couple of books a lot of times. So Merv's actually implementing that in his listening habits as well. Finish the episode, go back, cut and he goes like a great book. A great potty episode more often than not benefits from a second or a third lap through and will uncover gems I may have missed on the first listen. Now, thank you, Merv.
Speaker 1:I actually do that too on some of my favorite podcasts, particularly when someone that I like and listen to is being interviewed, because it's a very free styling style of chat and narrative and sort of a assembling of their thoughts. I really, really love it. So I like that too. Another tip is I send it to my partner or my neighbor to listen to and then we can discuss at a later date. We often find different key takeaway points. Again, referring to the book comparison, it's like a book club. Love your work, fellas, and the team of Steve Stiggs Cheers Merv. Merv, I love that. So I want to blatantly shout out to our community Ben, I want to hear all of your life hacks. I will read them out. Please send them to me any way you like. You can do it via our homepage, or you can do it via Instagram or any of our other socials.
Speaker 2:Now, if Merv hasn't got a start and build course, ross, he now has a start and build course. And if he has already got a start and build course, guess what, merv, give it to a friend, you know, pay it forward, or give you another link, because that's gold, I mean. That helps us get motivated, that we're making a difference and you're, you know, feeding it back to our community or adding value to the community. Anytime we add value to the community, we've got to one up it, and so that's it You're getting a start and build course.
Speaker 1:Well, said, ben Love it, and we are a podcast of the people, so we try and include as many people as we can. So if you've got a question because we've got a Q and A episode due in the next few weeks, ben, go to thepropertycouchcomau on the right hand side. Whether you're on mobile or you're on desktop, there's a little button and you can leave us a message and everyone's used to speaking online now, ben. So it's so incredibly simple to do. And if you've been and here's a little tip for the for the for the episode, for the question to be included in the episode, ben just think is this good? Is this going to benefit me specifically, or will this benefit the community knowing the answer to this as well, because we generally don't usually take the ones where it's specific, highly refined, bespoke sort of questions specifically for the person, because obviously we're here to to plant seeds into as many people as we possibly can. So there you go. Thanks, merv. Appreciate the contribution folks Give it to me.
Speaker 1:I want to hear your life hacks and your mindset minutes as we go. Ben. What's making property news, bryce? Did you know?
Speaker 2:that the property investors Council of Australia is a not for profit association.
Speaker 1:I do, but to play along at home, is that true, Ben?
Speaker 2:That's true, bryce? And did you know that to obviously run a not for profit association, you have lots of volunteers and people who work behind the scenes, and but you still have costs associated with running a non for profit association, and so I do know that, and I know you're not going to say this, but I'll tell everyone.
Speaker 1:I know that you've been putting your hands in your pocket.
Speaker 2:No we're not going to talk about that. Anyway, we'll move along. So we've got we've got a bit of a challenge and so I'm absolutely reaching out to the community for a little bit of help, because for the association to do the work that it does in terms of advocating and putting a case forward for property investors, especially to government and regulators, at this difficult time of a rental crisis, we require funds Now, of course $5 for a year's membership and $20 for a five year membership. If we don't continue to get some of those members coming on, it does make it very difficult because we all always have fixed costs in terms of technology and managing the membership platform and managing the CRM and that sort of thing.
Speaker 2:So I'm making a shout out based on this point. I mean, it's got to be what's in it for me. I get it. So I'm trying to sort of build it up to the story that I want to tell here, and that is that, based on the decision of this government and I want to stress here that liberal government have backflicked and lied on, you know, during elections as well as so I put them all in the same bucket in terms of can't be trusted, that's helpful.
Speaker 2:Every, every, every little quality is in the same way, tony Abbott before he absolutely got up in front of an election on the 20th, 30th and just basically told untruths or lied about things that he wouldn't do, that he eventually did. So it happens right. So I get that it happens. It's not ideal, because if they're men of their world or women of their world and they have integrity, that's what we don't want, because obviously, as investors, we want to have confidence that you know that, basically, the investment landscape will stay relatively consistent over the medium to longer term, especially if we're small business owners and we're investing hundreds of thousands of dollars, if not millions of dollars, and collectively tens of billions of dollars over the course of time. So our biggest challenge we have now is we just don't know, then what's going to happen with negative gearing and capital gains tax, right so? So we heard over a hundred times around no, no changes, to stay three stage, three tax cuts. And then they changed them, and so right now we're getting the you know the sort of hand up, but you know we're not looking at that policy, it's not part of our policy agenda, blah, blah, blah. But we now know that that could change on a dime, and so what I'm looking for for those of you who aren't members, please join up.
Speaker 2:All right, that $5 and all that $20 does go to a lot of advocacy work. No one gets paid inside Pickup. We do have a, an assistant who checks our email addresses, email correspondents and membership inquiries in that offshore to keep the cost down as a minimum, and so they do get paid. But no one who volunteers their time. No one on the national board, no one on the state advisory council, no one else. We all just dedicate and volunteer our time. So if you are, if you are not a member, please sign up. We would love to have you as a member.
Speaker 2:There are some valuable insights. There's webinars that we always have. There's on demand. There's about 25 on demand webinars. You can go back through the back catalog. There is some awesome and I've got to repeat this awesome lists of websites and detailed things of information that you can do your research on If you're looking for new places to find information. That's all available there.
Speaker 2:And then, finally, it's this advocacy work that I'm talking about in terms of protecting the interest and getting a level playing field, or what I would call now a fair go for property investors, because it does feel like we're not necessarily getting listened to. People are forgetting that in a lot of cases that only 25% of our small business costs have been passed on to tenants at this stage in the cycle. So that's challenging in itself for those small business owners to run their businesses and keep providing that critical rental accommodation. So what? Your donation or your membership? If you're already a member, donate. If you're not a member, sign up.
Speaker 2:What that allows us to do is to just basically build up a little bit of a war chest there that if we've got to get some collateral printed or if we've got to get some information gathered or if we've got to run an event and we need to pay for a venue, that helps us in terms of putting those costs together.
Speaker 2:So I don't often have to like for handouts. Obviously, personally this is not a handout for me, but it is an important handout for the association because we don't get this money. Then the reality is the association has to basically close down. Who is going to do that advocacy work on behalf of the property investor? We do have, obviously, peak associations for trade and they do a brilliant job in terms of PIPA, but I'm talking to all of us individual property investors. That's who we are the voice of. So if there's any money you can spare I know times are tough so I'm not I can only asking for what you can spare, but I would appreciate it if you can give us a little bit of a kick along so we can pay some of our outstanding bills and we can keep the association alive.
Speaker 1:Ben give us three simple steps. So we go to the PICA website, number one, number two we click on the button that says membership or donate.
Speaker 2:You click on the button and then basically you follow the, the, the cart, the, you know the, the car that's it because select.
Speaker 2:You select your membership, review new member. Put your details in and that will give you your membership area. You'll set up your web. You'll set up your password and your profile. That means you can then access all of the rich content that we have behind the paywall. That's free to access. You don't have to pay anything more for that. And then, yeah, if you're a member and you know you can donate 20 bucks, that is awesome. That will just kick us along for another year.
Speaker 2:We don't need a lot. We run on the smell of an oily rag. It costs us about eight and a half thousand dollars, with all of the insurances and all the other stuff that we have to about $10,000 a year to run. So that's the sort of money that we that we do need overall. So anything that you can commit.
Speaker 2:Now, of course, all of our associations who support our tenants. They get millions of dollars of government funding to be able to support and care for tenants, and I'm no problem with that. But it obviously means that they get a lot more access to government, a lot more access to fix the agenda in terms of the policies, and so that's where we get things like no grounds of ictions. That's where we get things basically moving, where it's very difficult to to manage your property with certainly unrealistic minimum standards in some states and territories, and that's creating additional costs and lack of confidence and ultimately the unintended consequences, that is, that we have less rental properties available to meet the demand for rental accommodation in this country. So thank you for giving me this opportunity to speak on behalf of the association that I've chaired for, I think, the last six or seven years now. It's obviously important to me that that property investors are recognized for the contribution we make to society and also economically. So thank you, bryce, for the opportunity to pass the message and folks.
Speaker 1:Just for full disclosure, ben volunteers his time 100%, so does not get paid for the wonderful work that he does. So thank you on behalf of all the property investors, ben. So, mate, we've covered a fair bit crew today. Obviously, we've given you an opportunity to understand what it takes for the path to fail. Next week, we want to give you some tools around what the property market outlook is from our perspective and, of course, hanging for all of 2024, as we continue to deliver what we hope is thought leading content for you to help set you up for lifestyle by design, not only this year, but in the 30s, 40s and 2050s as well. So, mate, until next week.
Speaker 2:Knowledge in powering Bryce, but only if you act on it. Don't do what these other people do. Don't go down the fail pathway. Go down the proper path.
Speaker 1:Should we? Should we say knowledge is empowering, but given the flavor of today's episode, but don't act on it.
Speaker 2:I think you've just rolled out the end of the episode, mate. See you next week, folks, hey, folks, bryce, here again.
Speaker 1:I just wanted to catch you real quick before you go.
Speaker 1:If you're new to our community, I want to encourage you to listen to our very first 20 episodes, as the concepts we share in EPS1 through 20, our foundational principles, pillars and frameworks that you need to know for you to get the best value from our content week to week on our show, my little tip is to listen to it at one and a half speed.
Speaker 1:Now, for those of you that are time poor and don't have the option to go back to the beginning, don't worry, because we've got you covered as well.
Speaker 1:We've created a binge guide that summarized these foundational episodes into one easy to digest booklet so that you can get up to speed super fast. So go to the show description on whatever device you're listening to now and simply click on the first 20 episodes link to download it straight away. Oh and, by the way, whilst you're there, you'll find a few extra goodies for you, including a link to download our lifestyle by design app more, the home of Wealthspeed and Wealthcock, and our hugely popular MoneySmart's money management system, as well as how to get free copies of our bestselling books. Now, just a reminder that anything we cover on this podcast is not considered to be financial advice, and we certainly recommend that you seek out expert advice tailored to your unique circumstances, and everything we talk about is general in nature. Folks, I want to encourage you again to click on the show description, wherever you are listening, to access all the free goodies we have for you Until next week.