Hey there folks! I'm Bryce Holdaway.
He is Ben Kingsley and we are the co-authors of The Armchair Guideto Property Investing.
Ben, we finally got to the endthe whole final chapter.
The whole point of this entire bookwas to get us to the very end where we actually say, “How to retire on $2, 000 a week!” We actually show you folks how todo that.
We merge it together Bryce.
There you go.
Thank you Ben.
Hold it up.
What page number is that? 215 Bryce.
Now folks, I just want tobuild a bit of a backstory on this book.
When Ben and I decided thatwe wanted to write a book regarding property investment, we kind of just did that look at each other which was a knowing look ofthe world doesn't need another investment property book, where he and I sit up there, pumping our chests going how good are we.
Look at all the toys we've got behind us in the picture.
We didn't feel like thatwas going to serve anyone in any way so the context of theway that we decided that we would write our book, was from the perspective of a professional advisor.
Ben's a qualified property investment advisor.
I've been doing thisfor over 20 years so we thought what would we do if wewere doing a consultation and a discussion, capture everything we'd say in aconsultation and put it into the book.
So that ultimately, we arrive at chapter 10 which shows peopleexactly how to do that.
Rubber hitting the road Bryce.
Rubber hitting the road.
Can you give us a quick feedback fromyou Ben around why we decided that the world didn't need another book likethe other 50 million ones with the plane on the front of it?Well look there's a lot of books out there that just basically talk aboutthis is how i do it and you should follow me.
This book is actually about a tailored solutionirrespective of what demographic you are whathousehold composition you are you can actually do thisfrom any walk of life as long as you're prepared to put in the workput in the planning and understanding all of the moving partsso it's very much a framework driven bookbut chapter 10 sort of supercharges that story when you start to understandall the moving parts that make up uh you know modeling out a plan so you can planto become what you plan to become exactly ben so this is this this book isa culmination of 20 plus years of knowledge from ben and i doing thisbut more importantly we like to think of this bookas the yoda ben where we are the guide uh not the hero it's actually allowingpeople to go through and see themselves within these pagessee how they can actually fit into the book for themselves and and actuallymake that um make that transition from uhhoping for some form of lifestyle design to actually getting it sohey what i want to do is i just want to share that to folks we'vegot uh five scenarios that we go through ben and acouple of things one i'm going to quickly go through whatthose five scenarios are and then two i want everyone in thecomments section if they could actually put which one they are that'd be reallygood because i can see the comments here andwe can we can uh address that but but then benwe actually we wrote this back in 2016 and we misseda popular demographic for these case studiesso there should have been six case studies not five so i want to throw itout to to the comments to see if anyone canwork out what it is but here we are ben you readyyep go for it scenario number one is the rent vesta ben scenario number two isdinks double income no kids number three iscouple with young kids number four is older couplewith older kids and number five isempty nesters ben so folks who are who are watching this thislive can you just put in the comments box uhwhich one of those are you are you a rentvestor strategyare you a dinks or a double income no kidsstrategy are you a couple with young kidsare you an older couple with older kids or are you an empty nesteror ben are you the one that we forgot oh and what is that one we forgot becausewe might even find out that there might be another category that we missed outon but well that's definitely one there'sdefinitely one that's the point of this ben because then if we get all thisreally cool feedback we might have the second round book that has ten casestudies because everyone says well you missed this onebut there's a few coming in here so we've got katrina smith saying couplewith young kids yeah we've got daniel raydaniel ray lazaru a couple with young kidswe have also got asha gillespie couple with young kidswow uh which is cool we've got alexander skeltonwho is a rent vesta uh so we've got uh michael aldertonhere to represent the number twos ben dinks all the way double income no kidsian's a rent vester so we've got a bit of a cross section have we got umolder with older kids i just want to have a quick look thereis nodding no she's saying no no no um so all right steve's really good i getto see iva's on the screen here bryce i know everyone else doesn't get to see itbut i've got a you know i've got her on my screen here sostick around she doesn't have mute on so we can hear a voiceso but the thing is here's the important stick around right to the very end folksbecause ivis will accidentally put herself oncamera she does it every second time she forgot to do it last time so ireckon then and then she'll go back and panic andpull the video and edit her out of it and then put it up again later sowe'll see how we go so let's have a quick look behind you nowwhilst you're having a look i will sort of pad that out bryce by talking aboutthe the ones who are the couples with theyounger children here's a little tip for the beginnerswhat's the amount of income sorry amount of cost that you shouldassume per child um so we use a modeling indexthat's based on raising children and you will be around that sort of 350to 500 dollars per month per child okay so that should give you an idea ofwhat it cost now if you want private school fees anda few other bells and whistles pony clubs drum lessonsdance lessons and a few other things but that's roughly the costit's going to be per child per month how much350 to 500 dollars price per month they usuallywhere is that where was i got two kids mate youhad your heads up 10 years ago they are priceless pricethey are priceless so it doesn't matter what you have to pay they are pricelessthat's what i'm told anyway um no they're not cheap so that's the realityright so ultimately that's going to have a big impact on cash flowum we normally factor in around seven to ten thousand dollars inyou ready for this startup costs which is basically preparing for bubs sothat's getting the nursery ready getting the the capsules and theand the car seats and the prams and all of thatum so yeah you know it's it's not not a cheap exercise for usraising children but the memories for us the memoriespriceless that's it it's probably a good yeah that's the priceso it's probably a good story to remind folks that sometimeswe haven't intended to be the family planning clinic but it might be worthyou telling a few stories around uh how as a property investment advisoryou back in the day you turned into thefamily planning clinic for a bit there's aanecdote or two you might want to share well mate i've got one straight fromtoday i've got a text message from my lovely wife jane today you ready forthis yeah jack was on the internet when heyou know wasn't necessarily meant to be and what do you think he stumbledacross oh this could go yep that's pretty much ityep you know so that four little word it starts with pyep okay our filters aren't working properly so there you go sothat's the joy you have yes so we've got to obviously you know sit down with jacklater tonight and go through that that's not stuff thatyou know like how did you get here like where did you go you've never seenthat before how did you do that anyway so that's a bit of fun but lookat the reality comments for all the uh the seasons parentswho know how to help on that regard then the reality is is that uh yeah you knowum we have a strong view that if you want to succeed financiallyyou you are best to plan property acquisition before you planchildren now that's not to say that you know money is everything um butit will serve you um in having a more comfortable andpotentially um prosperous uh ending because you arechasing your tail if you're trying to do it the other way around sofor all those people out there who are thinking what's the best decision to doum it's probably not having a child when you're rentingum because it just gets tougher and tougherum as you go so we do feel for those those people but if you know if it's aif it's a life story that they want and they don't care but just be mindfulum that it's a very very important decision that you'remaking and we do know that your state of wallopplays with your state of mind so just be mindful of that as well becausewhen the tough the toughness does happen financiallyit's very difficult to uh to be up and about so it's also good to pointthat out we are of course talking about thearmchair guide to property investing how to retire in two thousand dollars a weekwe have been doing this now for ten facebook lives not nine not eightbut ten yeah what we've done is we've actually gone througheach and every one of these chapters and summarized the chapters and we're givingpeople an opportunity i think stiggy mightput a little link up on the screen at some stage which i think would be justabout here um ben do you remember what side itis for you it's uh there bros over here on my rightthanks for the direction before we started there we go iris will be happywith that so folks if you want a copy we're givingaway some free copies because we want to get in the hands of as many people as wepossibly can if you tell us two things where to shipit and if you pay for the postage we'll send you a copy of the book ben so ifyou want to play along from home watch all of these facebook livesum we we will have this in a standalone podcast as well thenwhich is good which sticky but by the time uh you're listening to this you mayactually be listening to this as the podcast ben but for those of you whoare early days yeah you can keep an eye on that we'llmake that known but um so ben i'm just going to throw it backout to the crew who are watching us because i want to know which ones we'vemissed either she might be able to help me with this because there's quite a fewcomments here um but just wanting to see who we missedbecause there's actually six in the book ben i've left one out on purposeum so i want to see if it's been missed but number one are you a rentvestornumber two dinks number three couple with youngkids number four uh older couple with older kids andnumber five is an empty nester and then of course number sixis question mark so folks uh who did we missibis just let me know if there's anyone who's put that into a commentyet i'll just have a quick look to see um nowho do we miss folks who did we miss stick around to the end we want to knowwho that is but um there's a few there's a few comments here ben fromfolks who are uh saying they've got the book so thisone from katrina smith bought the book love itthank you for that um and iris might put a couple up on the screen now so peoplecan actually see their comments which wouldbe pretty cool so most people playing along brycewho are listening to the podcast for the first time the rentvesta is still asingle person because they're probably screamingout single it's clear everything everyone else was couplesso it's got to be the single ah well the first case study was a singlered vester so we captured that as well yeah sofolks the the one that we haven't talked about uh which is in the bookis the divorcee so someone who is actually needing to recover from aposition so we've got that covered in hereand ben the other thing is if you go to the armchairguide dot com.
iuwe've actually done a seventh case study and that's actually the one wherewe talk about single income single professional femaleno kids yeah and buying not reinvesting yeah so that's also an important one sothere's some yeah look i mean there's obviously there are different types ofdemographics out there and how early you're starting how lateyou're starting those types of things are going to play a role buti think you know the teaching that we want to do in terms ofthis chapter is about all the moving partsand bringing those moving parts together in terms of you knowyou've learned about the abcd so now we're sort of getting more technical onthose cash flow elements so you can start to see you know when westart talking about those moving parts around cash flow sobryce is holding that up there so lots oflots of data and analysis and there's also the strategic planning diagramthat's good and i'm going to do one now bryce which is this one here whichbasically has you know all of those moving parts soyou can start to think about it and on the very next page that's this one it gets a little bitmore technical but there's lots of bullet points therethat's how it it affects money i've i've sort ofi've coined it price of coin it's called consequential financedo you like that that's what that's the name i'm going to give itconsequential finance so what problem are we trying to solvein the world we're trying to solve consequential finance now what does thatmean it means that we're we're measuring the impact ofmoney decisions so consequential finance which issomething i've just come up with really does refer to before you actuallyspend it um it means that what is the impact ofthat and how is it going to impact your cash flowyou like that see i did like that you've never heard that before have you ihaven't heard that before but i just wanted to take a look at you andcongratulate you for done hey um uh interestingly ben uhwhat we've done actually obviously just said to me daniel said you forgot theones living with mum and dad um not really renfester you could bearound best if you live with mum and dad as long as you make sure that it's uhthe rent investor is a strategy you want going forward because if you change yourmind as a rent investor that's um i've gone on daniel's side there mateyou can't be a investor if you're living in a homeunless you pay you're a board vester you're a boardall right fair enough i'm sure mum and dad are charging a bit aboard but wellwell played daniel like that thank you iris will keep sending him through to meif there's any others i think she'll put it up on the screen as welluh if you if you leave a comment and we read it out irisputs you up in lights so um yeah she's clever like that soben yes mate uh there's interesting um stages here right because you go fromrent vesta you go from uh double income no kids so it's almostlike a a life cycle approach and then also with a divorcee at the endbut it's interesting that um there's differences within time isn't itbecause if you're older couple with older kidsusually you've got a couple of things on your side umresource generally speaking you've probably got a bit of equity in yourhome if you own your own home and generally speaking then you'veprobably got a little bit of a run rate up with your careerso you're probably starting to hit a bit of peak earning capacity sothe banks think you're you're wonderful in terms of of a credit riskbut the secret source in property investing is timeso so it's not too late but you've run out of you you've run it from aa bit of a shorter run-up versus uh when we had david before talking aboutwhat about living with mum and dad well now you're on the other end you probablygot plenty of time um what what happened there obviously i said the wrong namei did so remind me a sec this is going well for you bryce nowkeep going it's good enjoying it it's all right for you isn't it justkick back i'm gonna coordinate these multiple screensso then on his um his side of things you you've obviously got plenty of time onmaking a big assumption here but maybe the resources so it's kind ofum you know we've talked about this in a previous chapter but it's time targetincome and expense so it's about having thesethese particular scenarios being at different points in the leverage meteron all of those four things correct and i think you know obviouslythe biggest challenge for most millennials is a depositso um you know the bank of mum and dad is sometimes helping out in that respectin regards to um potentially using a bit of equitythat they might have in one of their properties which is a great startingpoint um to help the the children get onto theproperty ladder because it isn't about buying that nirvana property first up umthere is a a program that i'm sure your parentswill tell you about in terms of our first home wasn't ourdream home or you know that was their home thatthey were going to live in but they had other plans about you knowbuying an investment sorry a holiday home or something on those lines soso it's it's always important to note that that first property isn't usuallythe one that you're going to be spending all of your time in daniel beni said david daniel that's daniel i knew you apologizeddaniel i'm sorry mate oh yeah obviously sending me text messages i'm watchingthe comments here oh kingsley mate they're all he's doingis turning the pages all i'm doing is doing the teachingi'm just focusing on the lesson here um assumptionsassumptions is next hope for a man it's like we're finishedisn't it like it's the last chapter we're letting our hair down a little bit so let's let the hair down to the bottomof your chin a little bit thank you it's the first one to 221 is animportant page for everyone to read when you arethinking about how you do these cash flow assumptionsum thinking about now since we've written the bookfor us um we always use seven and a half percent long-term interest ratesyeah now um the the model that we use just to give everyone context is that welook we look from 1990 um and effectively when inflation andwith the reciprocity that we had to have and we looked at the long-term interestrates over that time up until today and thatwas back in 2009 that we did that analysisso that's how long we've been doing this work for umsince obviously that time we've had low record low interest rates and goinglower in lower lower and now we're at these you knowwhat what was once referred to as emergency interest rates which are nowgoing to probably be the norm for any time that i'm alive um and sowe've now dropped that down so we averaged that out each year and that'sbeen creeping down so we would suggest as an absolute minimumnumber that you wouldn't push below six percentlong-term interest rates so when you're doing your modeling andmaking sure that you can afford somethingbecause interest rates will go up at some point into the future post pandemicand so you want to make sure that you can afford this property for the mediumto longer term not just the short term because we don't want to be speculatingproperty that is not who we are that is not what we recommend werecommend multiple different you know strategies fordifferent people cash flow strategies balance strategies growth strategies forfor different households and what their surpluses are sothat's an important message but that is that's probably the main one that's umthat's changed but everything else in here is pretty much inflation isprobably still sitting at indexation at three percent you couldprobably tweak that to 2.
5 in the current environmentbut everything else six percent uh capital growth on umuh on your superannuation returns um nine point five percentcontribution to super that is going to hopefully go up or althoughwho knows bryce i mean can i give you a little scoopwhat's going to happen in the october budget you can give us a scoop and whileyou're doing that if the folks who are watching us because there'squite a few folks here ben um just pop in the comments section where youare right now watching this i'd love to know that i'm going to read a few outbut go for it scoop for october so scoop for october tax cuts personaltax cuts are coming bryce the question is they're going to bemoved a year forward or are they going to be moved18 months forward so will they be from the 1st of january2021 or will they be from the 1st of july 2021 so that's number onethe other point around what's also going to be coming is as a as a tweakthey may not move that compulsory contributionthey may push that timeline out so it was moving from 9.
5to up towards 10 and then 10.
25 that that may just be pushed out by a year orso so just um with that that one i'm not really sure of but i'm pretty confidenton the tax cuts very good you are the future primeminister so hey ben renee is in devon devonport yes tasmania uh lovespeeding is working from home in sydney uh we've gotuh katrina in thornlands in brizzy katrina smith we've got annaberrigan in mackay and queensland she wish me you'd be happy with being upin mccoy and queensland right now but as soon as you're a battery hereyeah yeah melbourne i'd snake up to early beach there and go out in thewhitsundays for a little little paddle in queensland there's abit of queensland cornubia in brisbane um and then we've got nathan uh frommelbourne with a face mask on his little emoticon whichis good ian from sydney alexandra from westernsydney port hedland over in perth oh i can't remember no no bit high up in theperfect side and you're a western australianmate you should know you know geography should be i pickedmyself up within three seconds fair go like three seconds so oh we've gotkalgoorlie here we've got a lockdown in melbourneso we got we got a bit dean in melbourne so benthis is the pyramid this is the culminationbecause um i've just lost my page chapter one covered it through herechapter two chapter three chapter four so we were building theknowledge base all the way to the very topben so read it out for me bryce can you read it out for theyou are mr audio okay chapter one chapter one was the personal values andgoals ben which and the mindy mindset chapter two was the four foundationallevers then maybe you could put the um the pyramid up on the screen as iread this out there we go here we go see how we work together chapter three isthe five essential steps money smarts and the industry players that forms partone then then part two is in chapter fourinvestment foundations is asking you to move it the other wayben the property investment formula no the other waychapter five is the property investment formula and building a teamuh chapter six is the property market mechanism chapter sevenis the buyer's decision quadrant chapter eight is you as the investor chapternine is the investment strategies being those 18 investors threeand then chapter 10 was the real life case studies can you believe we've doneit kingsley we've done it we're doneand the conclusion bryce i think we should should we read the uh the finalparagraph of the conclusion um okay on the close on the close no ithink it's on the close yeah well the thing is that um you wantme to read it or you're gonna read it wellhow can the people get the book just for a final reminder of how you can get thebook well if you point to with your righthand and i'll point with my left hand we justgo there that's how they get it ben over that way yeah there you go now iwas just stressing out but here's the point benif you want this book and you're a readeryou go to the armchair guide dot com dot ayu we'll get it we'll send it out toyou but if you're also an audio booklistener ben there's an opportunity once you get thefree paper back you can upgrade to get the audio bookbecause you might want to consume whilst you're listening to the car going for ajog going for a walk all that sort of stuff then soif you get the paperback book there will be an opportunity for you to upgradeto actually get the audio booklet not only the audio book ben you'll get thekindle version you'll get the pdf version you'll getall the supplementary notes so just the tablesso that you can actually just have the tables next to you as you're listeningto the audio book then you might be on a plane or whateveractually not a lot of planes so so basicallyum the armchairguide dot com dot if you're a readerif you're a listener if you're a skimmer if you're a kindleit's all covered there ben so we want you to go and check that out thearmchair so i don't know if it's still up on thescreen yep actually it is so there we go any closing commentsbefore we go to the conclusion ben no no i've enjoyed these last 10facebook lives price and and for those people uh on on them i'veapologized to you now in advance for obviouslyinterrupting your day um and those who are listening on thepodcast apologies for our little you know run around there in terms ofhaving a bit of fun so hopefully you've got some takeawaysas well very good so it's been enjoyable then iwill go i will finish with this conclusion so i hear you guys wish youcould hit the button but uh it just reminds me of for those theaudiobook i had to read the book twice the first time the audio wasn't good sothe second time so it kind of feels like i'm reading theconclusion probably for the third time ben so but here we go socongratulations on getting to this point you've climbed to the top of the pyramidwith a lot more knowledge about this whole property investing thing now yourarmchair ride can begin ben however just as with dieting wherenothing replaces eating well in regular exerciseso too is it with investing that nothing beats having a proven processand then actioning it the way you sign off every weekwe hope that reading this book gives you a great start on your investment journeyif you have already started we hope we have given you a greater insight intoall the important parts and that when you put together they makefor a very very powerful result our wish is that you keep the book handy ben keepthe book handy and use it as a constant resource thatyou refer to often so i'm going to go straight to thefinal words ben yeah our final words knowledge isempowering but only if you act on it then youshould start saying that each week building passive income comeswhen the grunt work has been done only then can you sit backand relax from your favorite armchair there we go the titleuh from your favorite armchair only one thing left to do benlet's begin over to you actually how we sign off over to you ifi can get it on the screen there it is there we got it sort ofstill oh there it is it's even in focus there you go folks over to you so i'mgoing to encourage you to go to the armchairguide.
comgo and get whichever way you like to consume the book benif it's paperback we'll do it for free if it's audiobook weupgrade it for a small fee once you get there but go and check it out we'd lovefor you to do that ben and the other thing i want to sayis we have a podcast it's called the property couchit's our joy and our privilege and our passion to do it each and every weekwhere you and i get together give the insider's guide to propertyfinance and money management this thursday will be no different thenat three o'clock australian eastern standard timewe will release another episode it is a corker this week you've got to check itout so i'd encourage you to do that mate but sobefore i sign off any last words from youwell just uh i just want to publicly acknowledge you bryce for reading theaudio book thank you very much for doing all that work twicei think it's a grand effort and people will get benefit from that because itwasn't me so i think that's that's an important outline thereso yes mate well done congratulations and uh yesthey get the benefit of your wisdom between the pages but thank you for thatmate i'm certainly hopeful that it that it does provide value uh to ourcommunity in some way shape or form go and check it out folks go and geta free copy go and upgrade to the audiobook if that's your jam but uheach and every week ben the podcast so i reckon you should go and check it out atthepropertycouch.
com dot a u.