“Begin with the end in mind.”
- Stephen Covey
In this week’s bonus episode, we’re rewinding the clocks and revisiting a past episode that covers a core strategy every investor should have...
Your Exit Strategy
From the “Buying and Holding” to the “Buying and Selling” strategy, we’re exploring the many ways an investor can leave the property market and which approach works best under certain conditions.
An old episode that covers an evergreen concept, tune in now folks!
Free Stuff Mentioned
LISTEN TO THE FIRST 20 EPISODES HERE >>
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👉 Apple: https://apple.co/3ioICGW
👉 Google Play: https://bit.ly/3OT86bW
👉 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
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- Facebook
- Youtube
“Begin with the end in mind.”
- Stephen Covey
In this week’s bonus episode, we’re rewinding the clocks and revisiting a past episode that covers a core strategy every investor should have...
Your Exit Strategy
From the “Buying and Holding” to the “Buying and Selling” strategy, we’re exploring the many ways an investor can leave the property market and which approach works best under certain conditions.
An old episode that covers an evergreen concept, tune in now folks!
Free Stuff Mentioned
LISTEN TO THE FIRST 20 EPISODES HERE >>
MOORR MONEY MANAGEMENT APP:
👉 Apple: https://apple.co/3ioICGW
👉 Google Play: https://bit.ly/3OT86bW
👉 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
G'day folks. Now, steven Covey once talked about begin with the end in mind, and you know, Bryce and I are constantly talking about plan to become what you plan to become, and that leads to the whole conversation around. Well, once you build this wealth through property investing, how do you exit or do you exit? And so that's what this episode is about. We're going back into our back catalog and we're looking at all the information. Our foundations are still exactly the same back in 2015 as they are to today. So in this episode, we're winding back the catalog and we're talking about buying and selling, and we're also talking about buying and holding and the different ways in which you can exit the property investment market. So I hope you enjoy it in terms of listening to us way back when and you get those fundamental takeaways as you critically need for building wealth and success. So remember knowledge and powering, but only if you act on it.
Speaker 2:Alright, folks, you're on the property couch, you're inside as guide to property investing. I'm Bryce Holdaway, cohost of Location Location Location Australia on Fox sells lifestyle channel, and he is Ben Kingsley, the chair of the property investment professionals of Australia and also the current property investment advisor of the year. Hello, mates, how are you Good? How about there you go Very, very well, thanks. We talked last week about the fact that we're going to talk about exit strategy.
Speaker 1:Yes, we did. But more importantly, I saw the new money magazines out this week and there's my mate who's put together a fantastic article on how to create a passive income 55,000 a year, debt free. So check it out. In the Money Magazine it's got some great stories of case studies. So we did three case studies.
Speaker 2:Yeah, three case studies. Our good friends at the Money Magazine, fesr Hoss, has asked us to contribute, and you say me writing the article. I think it was a team effort.
Speaker 2:Well, yeah but your words. I wrote the words surrounding the strategy and ultimately it's a story about exit strategy. So it leads into what we're talking about today. But I wanted to start off by saying that and I've mentioned this before on the podcast that really, for me, I had a mate who was when I was 18, bought an investment property. I asked him why did he do it? And he kind of said, well, because my dad told me I'll get some tax back and it's going to grow up in value and I can sell it and I can make some money. And it's like, wow, you know, that's interesting. What can you tell me more? And he goes well, I can't actually tell you much more, because my dad told me what to do and you probably need to have a chat with him. So it wasn't I can't remember exactly when, but it wasn't that much longer.
Speaker 2:I was studying at uni to do accounting and I was watching. You know, as all good uni students do, at lunchtime they're at home watching television rather than studying. And the Ray Martin show came on in Jan Summers, who I haven't met yet and I would love to meet. She was up on the white board scratching around some numbers, talking about buying investment properties, how the tenant and the tax man can pay most, if not all, of your bills, and at some point in the future you can sell these properties and you got some cash. And that was actually the catalyst to why I actually got involved in property investment in the first place. But it's not the only exit strategy and since I've been doing this for the last 16 years, there's been some evolution of different strategies one that I've learned very much from you and then another one that I've learned from some other mentors before, but we got lost to talk about today, mate. So where do you want to kick it off?
Speaker 1:I think before we start with the exit ideas or the concepts in terms of how we get out there. One thing that's really important with anything you do I mean property investing is a business. So as a business, you got to say to yourself okay, well, I need a business plan, and obviously that's a property wealth plan, and then I need to basically work out, as part of that business, what's my short, medium and long term goals? Okay so, and how do they align to my personal goals and the values of me as an individual? So we've covered off on that, you know, in earlier podcasts. So, if we start with the end goal in mind, it's plan to become what you plan to become.
Speaker 1:And I remember, probably when I was 28, 29, and I was just recently engaged and getting serious about things and had already a few properties behind me and I was trying to work out how the hell, how many more do I need before it becomes enough? Because we're about to start a family, you know. And then we wanted to work out what we wanted to do with those kids, in terms of how many we were going to have, whether we're going to put them through school, and so if I'm going to go off and spend another $500,000 or $750,000 on buying the property. I've got to work out that I can hold it for the medium and long term. So you know that was the origins of the simulator software that was built and etc. Etc, etc.
Speaker 1:And so coming back to the point of the end game, what was fascinated about when I actually built this simulator was one of our business partners, michael Pope, as you know, was that I only needed one more property to have $160,000 passive income in retirement by the age of 50. So that was a real oh great. Don't need to have 15, 20, you know these types of numbers. I was just looking at capital growth properties sensibly bought over time.
Speaker 1:Now, not everyone's circumstances are different. We said that sometimes we've got to buy more and sometimes we've got to chase a bit more yield because cash flows are a bit tighter. But that's where that origins come from. So and I was with the client last week and sitting down doing a plan for him and he said so what's the end game, what's the? You know, he wanted to know the outcome at the end, which I thought was good, because most people don't think like that. So I said I'm going to do a podcast on that just to explain to them that there are several options. So do you want to start off with?
Speaker 2:you know the first one that I came across when I first started getting involved in property investment advising commercially was seven properties in seven years. That's the classic, isn't it?
Speaker 2:That was the plan and at the time it was like, oh, that sounded pretty good. The idea of getting more than one property was daunting. But why seven in seven? And it was ultimately because the doubling cycle, if it was a 10% growth, would double every seven years. So the idea was, when you got to year eight, you would live off the equity in property one, you know, and you live off the equity in property two and become this rotating cycle. But what, ultimately? The challenge with that at the time was everyone was doing models of sure, that's okay, it can work on paper in terms of equity, but what about in terms of the bank lending the money, the servicing? So that was the often challenge.
Speaker 1:And that's why I think you see a lot of operators out there and commentators talk about that they have to chase your yield properties because you know they hit borrowing power limits, and I don't necessarily agree with that concept. I mean, the reason why they're doing that is because it sounds like everyone can do it, because if the property is cash flow positive, well, just keep buying them Like Monopoly. Everything you land on your buy. You know that type thing and that's not necessarily the case for everyone. There's professional people out there on really good incomes and from that point of view it would be silly for them to be buying these cash flow positive properties, because usually they're in areas where there's a little bit more maintenance that needs to come. The tenants aren't necessarily the greatest. There's a lot more volatility in that particular market. So again, it's a classic case of horses for courses.
Speaker 1:And so you know, I remember hearing a very prominent tax advisor of the day you know this is going back probably some 12, 15 years ago talking about the new paradigm of equity, and this is one of the extra strategy guys, which is, you know, living off equity. So that's basically saying build up this portfolio and the value of the properties is going to increase quicker than what you're servicing the debt. So don't even worry in some case about paying the debt down. And then, once you build a million dollars in equity, if you've got these magical lines of credit, then you'd be able to live off that. And and you know they're talking about the benefits of that being tax free because effectively you're using borrowed money and you got interest on interest.
Speaker 1:So that was that was an interesting one at that time, and that was when no docs and low doc loans were flying around everywhere. Well, guess what happens when everyone does that? It's called a GFC. You know where people live beyond their means and we're starting to see more and more leverage into the property space in Australia and that's a little concerning for me. You know, not everyone can invest in property and if we have 50 or 60% the population doing it, well, we're going to have a bit of a problem. We're going to have no on to rent our properties and we're going to have a correction in terms of value because we see this price above coming through.
Speaker 2:I think the challenge is that most people know that they I always say a goal without a date is just a dream, right? So people have this dream of financial freedom of some sorts, and but I often wonder if people really think about what that means. Does it? Because it doesn't necessarily mean the guy standing provocatively on the front of his Ferrari with a personal jet behind you know that that's ultimately what sells the sizzle, but correct the end of the day.
Speaker 2:Tim Ferriss is one of my favorite authors. He writes a blog you know that I bang on about him and he wrote a book called the four hour workweek and he talks about that. It's all about being experienced rich and time rich, and that's actually what you're doing it for, not so you can impress your mates. You got 1000 properties and I remember one of the clients that I was dealing with she had hundreds. That's not true, actually she had scores of properties and I remember just looking at me going I wish I could just sell them and hold three or four really good ones. So ultimately it's about.
Speaker 2:it's not about puffing your chest out saying, hey look, how many properties I've got. It's about how much value do I have, and then the end goal is how much income can I pull from it so that I can go and get as many experiences in life that I can and buy back as much of my time as I can? And I think if you can get the investor to remember why they're doing it, then we can focus on what we're actually doing, because I've evolved. The Jan summers by and sell down was my initial introduction. I've been doing this 16 years intensely.
Speaker 2:So it's hard enough for people who not doing it all day, every day, just starting out. And then it was the debt servicing debt the seven properties in seven years.
Speaker 1:And then I've got to hand it to you.
Speaker 2:When I first met you, you said that you don't need to have a big swag of properties. It's all about optimal finance strategy, buying the right properties and retiring the debt so you can have the passive income and property you make, because there wasn't that many people at the time doing it. It's now more popular now because you're making it more popular, but at the time it was more about the debt servicing debt scenario.
Speaker 1:Yeah, and I mean the reason why everyone hooks in on the idea of 20 properties, because people automatically think that they're more successful because they got more. But I mean, during the DFC I could have got my credit card out which had a $10,000 limit on it and I could have bought 45 properties in Detroit on my credit card. Now, bearing in mind there probably wouldn't have been any copper left in them and they probably would have had a few broken windows and so forth. And my favorite line, which a friend of mine once said to me, and also the chalk outline of people who they've scraped off the street. But the point being is that that's the challenge you've got out there in terms of that's the perception so they're trying to create, like the Ferraris and the yachts and all that type of thing. They're trying to tap into everyone's psyche about selling the sizzle, when in reality and what what we're about is bringing it back to core values.
Speaker 1:What's fulfillment for you and in usually in life, because you can't take the money with you it's about experiences and having the time to have those experiences, and they can be different for different people. They can be about, you know, living vicariously through your kids and giving them the best opportunities. It can be about the best health treatment for for a family member. It can be about we're not having kids and we want to sit on the QE to and have a private butler for the next six months, going around the world and opening up our you know, working up to a new destination every couple of days. Whatever floats your boats, good money's just a means to an end to do that. So that's the big point around. You know why we actually do what we do, and there's nothing more fulfilling in the work that we do to change people's lives Is it great.
Speaker 2:It's like the book the Millionaire Next Door. I mean, when you read that book, it's the people who are the Millionaire Next Door are the people that you generally wouldn't suspect, because they're not driving the flash car, they've got the standard A to B car. They just know that they're accumulating assets. And for me, the idea of wealth and it's different for everyone is being able to make sure I've got a roof over my children, my children's head, and then being able to just go off and travel at my leisure. I don't want a big boat, I don't want a big jet, but again, that's. That's that's. People have got different things, but the point being is, ultimately I think it's really important when someone comes into this business and we talk to them they've got four expense categories their discretionary spend, their bills, their loan payments. And the fourth one escapes me.
Speaker 1:Just general spending. So discretionary bills, fixed payments and you know lifestyle.
Speaker 2:So we always say to them how much passive income do you want to to fund a lifestyle? And they go with no reference. They go 150,000, because it actually sounds. It actually sounds like that's what they want. But then when we unpack it and we say do you know if you didn't actually have a mortgage on your home and you could retire all the debt on the investment properties, the two expense categories that are left suggest you only need $75,000 in today's money to actually not change your lifestyle at all. And if you try and just buffered that up a bit because if you weren't going to work every day you'd need to go on an extra holiday or, you know, go over to Tasman, so you need to give it a bit of a premium and they're quite surprised at how little in today's dollars they actually need to achieve a lifestyle that doesn't see them compromising at all, which is what the general sort of super or pension plan is looking like.
Speaker 1:Such a such an important message. I'm going to go over what Bryce just said again because I wanted to drill into you. When you do your bills and your spending and that spending can be essential and discretionary you total those two together. You take out any debts that you're servicing because hopefully down the track we'll have them paid out. In addition to that, if you've got a couple of kids that make up that cost base, factor them out as well, because at the end of the day they're going to leave the nest. Work out what that number is. Ask yourself if that's the, if that's the type of lifestyle that you want to lead and in some cases some people live very nicely now then bang, there's your baseline, there's your point of no return. And then if you want a little bit more on top of that, well, let's get to work. So it's either get to work to meet that minimum requirement or let's get to work to. To our perform and in our Soviet is 75, but they want to chase maybe 100. And that's a massive number. $100,000 in passive income in life says you got $2 million at earning 5%. So they're big numbers and that is another great segue back in to the points that we want to talk about, which is the exit strategy.
Speaker 1:So I'll lead off whilst you have a cough, and so the first one is usually the question we ask is what's the legacy? Do you want to pass on a legacy to the next generations? Have you been fortunate enough where you may have received an inheritance and you want to leave that legacy? Or that classic conversation about catching me a fish and I can eat for the day? Teach me how to fish and I can eat for a lifetime?
Speaker 1:Well, that's legacy is about that. It's about sort of giving them a baseline on which they can then improve that journey and take the next generation through. So legacy is what we call a byhold, which means that the focus is on trying to retire the debt completely out and live with those properties indefinitely and not even sell them. So this is no sell down. This is the Nirvana strategy in my view, because it's basically we're debt free, we've got the passive income coming in off the properties and when we die, we bequeath those assets. So there is a better tax outcome than what we would incur if we were selling them prior to passing away. So from that point of view, that's a really big one.
Speaker 2:And in terms of for you, would that be fair to say? In my experience, watching you build plans, that's your default position. You're trying to do that first.
Speaker 1:Oh look, yes, Now there's always an exception to the rule, and the classic exception to the rule is I actually don't have a family. You know we've decided not to have kids and so we don't need to pass that on. You know I'm a single person and you know I've never married and I basically just want that money to see me out. So I want the best medical treatment, I want to see the world, I want to do those things. So it's a sell down strategy, which is the perfect segue in the second one.
Speaker 2:Yeah well, the sell down strategy, as I said, that's the chance someone's one that I saw. I'm less. I'm less liking this one because it's selling the goose that laid the gold neck, but, like you say, someone who? I mean it's like getting rid of the cow and not having the milk forever. So but for some people, like you say, in certain circumstances that works. But for me, the sell down, because you're paying capital gains tax, you're paying agents fees, you don't really want to necessarily give away any of your hard work, and my first property mentor said to me you should never, ever sell. Now I've adjusted that slightly to hardly ever sell, because there are some circumstances where you should, and generally only if it means that you can get into a better position. But generally speaking, the idea of selling is not my preferred method at all. So it's probably that it's probably number three in order about three exit strategies today. For now, correct.
Speaker 1:So let's say we get to our retirement age, or our model show, or your model show that you get to retirement age of 60, and there's still $400,000 in debt left. Well, you've turned off your your wage, you've turned off your income and now you've got to try and see if the properties can handle all of that debt. In some cases maybe they can't, so the sell down might be triggered as soon as you get access to your super. How long is that super going to last you? And we use a rough rule of thumb here and it's just a very rough.
Speaker 1:But as soon as we get to $100,000 of liquidity in assets or income, we then trigger a sale of a property. So let's say we have bought four or five properties and we've worked out that even when we retire, we're still not servicing the debt because we haven't generated enough. Because our models say if you want $100,000, it automatically gives you $100,000 discretionary income and then it also captures the holding costs, so that looking after the property. And if there's not enough there, what happens is we start to see our bank balance go down. So selling down one of those properties, still keeping four, means we get a big payday. Yep, sure, we pay capital gains but we get a big payday, and that that might then be enough to have the debt either paid out or they might.
Speaker 1:In some cases it might be two, but you've still got a legacy. So so, for the listeners, a really important point here is if you're trying to do this strategy, make sure that you factor in that you can hold every property for a minimum of 10 years. Okay, so I'm going on a bit of a tangent here, but the idea is, if you're trying to buy a property and and hold it for three or four years, you'll lose money, usually unless you're really elite at timing the market. So you know, 10 years just gives the property enough time to breathe. I've talked about, you know, my fine wine concept before.
Speaker 2:So that's your version of short term. Property is 10 years.
Speaker 1:It is. It is my version of medium term is 15 to 25 years and and my terminology of long term is indefinite. So that's the sort of message there. So there may be a portion of sell down, but it's not necessarily sell down the whole lot. And in some, with some clients that we've built these models for, because at the end of the day, I mean I've built over I think about $700 million worth of property models for clients. So from that point of view it's I've got a fair, a fairly good idea of how many you know how different clients and again about tailored solutions.
Speaker 1:So that's where we go with it. So sell down could be a possibility, but again, we would normally do it only if we had to. So it's a great point you made before.
Speaker 2:So, therefore, legacies number one, where you hold everything and then, if necessary, you do some sell down, correct, what about? What are your views on live off?
Speaker 1:equity, yeah. So again, this was a concept that came out pre GFC. We talked about it earlier. There's some positives around the fact that you're living off basically lines of credit, so they're you know their limits that you've established before you retire. So you've gone to the bank and basically lined up all these limits and you can live off that and technically that's tax free, with a combination of super and everything else. It's a living. You can do it.
Speaker 1:But in reality I'm you know, my default position is I want to try and see these people hold onto these assets as long as they can. So from that point of view it's available to you and it's an option that some people may consider. The other option is the reverse mortgage, and I should also point out that when we do simulated models, this is about retiring with no, so self-funding retirement. So it just means there's absolutely no pension. So we don't factor in any pensions or any support from any other one. Else People come into us to get a plan done and they're looking to sort of say well, you know, don't rely on pensions.
Speaker 1:If there's a pension, that's gonna come in and it will. So if your asset base drops significantly, you'll be able to get eligibility for a pension, but in terms of the models we built, no, we're trying to say this is self-funding retirement, which I think what every Australian should aspire to. Is that self-funding retirement? So we've got the lines of credit, or living off equity. The other one is reverse mortgages. So reverse mortgages wanna tell the viewers about?
Speaker 2:it. Well, you're the finest guy, so I think it's gonna be short and technical for you.
Speaker 1:So reverse mortgage is a simple concept whereby we go to a lender and we basically say here I've got a $500,000 house, it's got zero mortgage against it, so it's unencumbered. But I'm cash flow poor and being cash flow poor, I'm saying to a lender, can you give me an income streamed from that property? So what's happening is they can release it as a lump sum or they can release it as a partial income every month and then the owner just leaves off that. So asset rich, cash flow poor type person. So we saw again pre-GFC, this was gathering momentum and, with an aging population which have a lot of their Australian assets are all caught in property just on $6 trillion. Now, latest data out of RP data, core logic $6 trillion worth of value is in our family homes, the residential property across Australia, which is phenomenal. So reverse mortgage is exactly that where you're talking about gaining some of that cash whilst holding onto the asset. Now what happens at the end? It's really important to understand. Reverse mortgages had some headwinds in the fact that when they're signing it over or signing the mortgage documents, the family members, ie the ones who are potentially going to be bequeathed these assets have to sign off because,
Speaker 1:you know, last thing you want to do is a will, contest it and so forth. Now, early on, reverse mortgages were right up to 60, 80% of the value of the home. So once the vendor passed away, the asset was sold and what was ever left over was passed on to whoever and the debt was paid out. Because when you're doing a reverse mortgage you're getting interest on interest. So you're taking the money out that's borrowed money and you're incurring interest, and then that interest is adding to the balance which is incurring interest. So it's interest on interest. So a lot of people don't like that concept. So that hasn't been as successful as what people think. But there's something else that's brewing that we think will come into play in the next few years.
Speaker 2:Bruce Agreed and I think that you talked about control before, and I think the challenge with the reverse mortgage scenario is you don't have control because you're relying on someone else saying yes or no, yeah. So, in terms of what we talked about before, if you can and again it's horses for courses, tailored solutions, different for different people but the reason that I think that what you introduced to me about five years ago is Nirvana is because if you're controlling your cash and you have zero debt, or if you've got offset accounts that are equal to your debt, there's no one who can change the rules and take away what you've worked hard to do versus. I always talk about the equity servicing, the equity model. Generally speaking, the people who do it. Well, you know, there's the front door, the side door and the back door with the bank, and generally those people who build big portfolios usually get in the back door. They talk to someone, they can see it as a business case, but they're usually the exception rather than the rule.
Speaker 2:And so the challenge I have with equity servicing equity and, let make no mistake, it works. But there's a couple of things. One is that the decisions have been taken out of your control because you're really relying on a bank manager to say yes or no. And the second thing is, ultimately you've got to be able to be in a position where this equity is usable and it can't be taken away from you, and if you've got the cash in the bank accounts for yourself, in my view that's nirvana. And I guess, if 73% of all property investors stop at one that was my other point if 73% of all property investors stop at one, the debt servicing debt model usually relies on you continuing to buy more and more and being comfortable with more and more debt and the average Australian isn't True, and the big elephant in the room here is it relies on property values increasing.
Speaker 1:So some of these properties that you're buying, usually for high yields, have pretty poor capital growth stories. So if you don't get that growth yet, some person came into your home and told you how to do this, or you've watched some sort of fancy video where they're showing you how you buy one a year or whatever, and then all of a sudden the assets don't perform and the equity's not there, or guess what? You put all your opportunity cost into the one basket and by doing that you've just limited your opportunity.
Speaker 2:So Let me ask you this question of all the plans that you build and what we'd be talking between 100 and 200 a year.
Speaker 1:Yeah, well, I've probably done now probably almost 400 plans. Yeah, and we average now about 150 plans a year.
Speaker 2:Of those question without notice doesn't have to be specific.
Speaker 1:Yeah.
Speaker 2:With the plan generally around having the principal place of residence and paying that off, and then a number of investment properties. Generally speaking, how many investment properties do you think the average person that you build a portfolio for need? Four to five maximum.
Speaker 1:Four to five, yeah.
Speaker 2:Interesting Some three. Quite often they're three. So there you go, listeners, the front page of the magazines where you get the small percentage of the population who bought seven properties in seven minutes or 22 properties in 22 months is not necessarily what you need, because here you are building portfolios for real people every day and generally speaking, it's five and often less.
Speaker 1:Yeah, and that's because what you're doing every day is going out and buying quality assets. It's all well and good to get the planning right, but the implementation is absolutely critical. So obviously in future podcasts, let's talk about that in terms of asset selection and really drill down in that, because, again, ultimately your returns don't come from the interest you pay. Good cash flow management's great, but it's the return that we're looking for from the investment and, from my point of view, property is just a vehicle for that. So getting the science behind the selection and the timing of the purchase in a particular location is absolutely number one in terms of what it looks like.
Speaker 2:By investment grade versus investment stock. Now there's one other thing you wanna talk about.
Speaker 1:Well, I think you'll just finish off with something that will happen in our marketplace. As the value of people's wealth is caught up in their family homes, everyone's looking for solutions to get access to that. Governments have got pressure around their pensions and so forth, so we think there will be someone that comes out into the marketplace that looks to do fractional selling. So what I'm talking about there is in a marketplace where people can sell 10% of their family home or 10% of a property and people can buy that and trade that as an asset. Now that is a game changer and it just means that property would have come of age as an investment product, and that's a good thing, because one it means that that household who might be struggling or really loves the area that they're in won't have to downsize, won't necessarily have to move, but knowing they're still in control and that people are just basically giving them some cash in which they can live on, I just see that as being something that will get momentum over the course of the next 10, 20 years.
Speaker 2:Yeah, think of someone who lives in Port Melbourne or Middle Park or Bulimba or Easton, sydney, who have been there since the 50s and the 40s, when it wasn't as popular to be there, and now, all of a sudden, as you say, they're asset rich, cashflow poor, and that would just give an opportunity for an investor to buy in a blue chip location and give them an opportunity to stay in the house that they've lived in for 50, 60, 70 years, which will be good.
Speaker 1:Yeah, and the assets gonna keep appreciating too. So it's almost like they may sell 10% and that gets them another 10 or five years, and inside that time the asset's growing. So there's not been any real loss, as opposed to cashing out of that and thinking they've got to sacrifice. So I think there's something in that. So keep an eye on that everyone.
Speaker 2:So there you go, listeners. In summary, we think there's three exit strategies. I call it the buy and sell, the buy and hold with debt, servicing debt and the buy and hold where you retire the debt bends called it the buy and hold as the legacy, the sell down and the live off equity scenario. So it'd be interesting for people to let us know what their strategies are. Feel free to send us a little note via the property couchcomau to let us know what your exit strategy looks like, what it was.
Speaker 2:Did today's podcast help you define that? Do you need some more information? Let us know so that we can fine tune a few of those for future podcasts. Now, as I said, as Ben said at the top of the podcast, if you go to the stands now, the Money Magazine article is there on how to create a $55,000 passive income. It is actually using the buy and hold and retire debt strategy. So you can see that it actually shows you the portfolio that we built for a divorcee, a young couple well, youngish in their 30s with two young kids.
Speaker 1:Well, young couple who can afford to get into property and investing more to the point, you know.
Speaker 2:And then a rent vesta. We talked about a rent vesta.
Speaker 1:Yeah, yeah, good.
Speaker 2:So we've covered off a few things. Anything else you want to cover off today, man? No man, I'm good, you're very good. So, as always, if you can go to our Facebook page, go to our Instagram, twitter, like us and spread the message. Equally, for those of you that did vote for us in the awards for the Investors' Choice Awards, we really thank you for taking the time to do that. And again, if anyone has a newsletter, electronic newsletter, that they'd like to send out a property couch to your list, please do so. Send us an email at the property couch. I just will give you a newsletter kit that will make it really really easy for you To run through. So next week we're gonna have a bit of fun. There's a Steven cubby who's the late. Stephen cubby wrote a book called the seven habits of highly effective people. There's seven points in there. We're actually gonna dissect each and every one of those points and how it relates to being seven habits of highly effective property investors.
Speaker 2:So can't wait for that one very much looking forward to doing that. So I'm Ben, I'm sure you've researched, probably all around the world, which way we're gonna sign off today.
Speaker 1:I am just so so organized German, today German today, or our folks, or about to sign up.
Speaker 2:It's thanks again to all our listeners. We've we've hit 20,000, in fact in excess of 20,000, downloads, which we're exceptionally proud of. We thank you for doing that, I'm thinking, for spreading the message. But Until next week I'll be the.
Speaker 1:Zen, I'll be the Zen.
Speaker 2:There you go, folks. See you next week. Bye for now. Hey folks. Bryce, here again. I just wanted to catch you real quick before you go.
Speaker 2: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 are foundational principles, pillars and frameworks that you need to know you, to get the best value from our content.
Speaker 2:Week to week on our show, my little tip is to listen to it at one and a half speed.
Speaker 2: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 2: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 wealth, speed and wealth clock, and our hugely popular money smarts money management system, as well as how to get free copies of our best-selling 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 until next week.