Hey there folks . It's Bryce here , and Ben and I are excited to bring you our new podcast mini series based on our best selling book , the Armchair Guide to Property Investing how to Retire on $2,000 per week where we give you an insider's look at the making of our book , chapter by Chapter .
Now , the reason this mini series came into being is because , back in 2020 , we did a series of Facebook lives to help us bust out of COVID lockdown blues and , instead of reading the book word for word like an audiobook , we told behind the scenes stories , chapter summaries , anecdotes and back stories to bring each chapter to life in a unique and insightful way .
Now we've brought together all the audio from these sessions so you'll see for yourself why more than 45,000 copies and counting have been read on the way to retiring on $2,000 per week through investing in property , and we talked about these concepts in our trademark casual and conversational style .
So if you've ever thought about retiring on $2,000 per week or wondered how to live a life by design , doing what you want when you want , or you've dreamed of travel or philanthropy or anything in between , then this mini series is for you .
We want to give you the Armchair Guide to actually do it for yourself , and if you'd like to get a copy of this best selling book for yourself to play along at home , you can get a free copy at wwwtheearmchairguidecomau . We'll rush out a copy of the book to you on us if you simply pay for postage .
We hope you enjoy the series and you design a lifestyle that you want to live . So dive in and enjoy each episode as you learn how to retire on $2,000 per week .
I just want to say that every episode I've ever done of location , location , location , location , location , location , location , australia and escape from the city has been all about this chapter right here . I like it .
Hey , bryce , do you know ? Your dog's behind you , having the little scratch on the ground , so can you introduce your dog to everyone ? We're a little bit out of focus , but here we go .
There's Nala , so she's interested in talking about the buyer's decision quadrant as well with us tonight . But this is a . This is the reason I set it up for that , ben is because I'm forever having conversations with anyone who appears on any of those shows around . Which of these four areas in this quadrant are they going to compromise on ?
So I'm excited to talk about this today because any property buyer , whether you're an owner or occupier or an investor , should be familiar with this . But before we get there , ben , we have been reading from the other the armchair guide to property investing . This is the book that we wrote back in 2016 .
The reason we're doing it now , ben , is because we're so excited that these concepts are evergreen , correct , so they are as relevant in 2020 , ben , as they were in 2000, . End of 2015 when we wrote it , and 2016 when we published it . So previously , we have gone through six other chapters , ben , which the first one was building your own knowledge base .
Second , one was the psychology and investing . Chapter three was the five essential steps you need to start . So that was the foundation . Then we've been going through the theory and the science . So the first bit with that was the fundamentals . The second one was the property investment formula , Ben . Chapter six was the psyche behind price .
And chapter seven , to round out part two , Ben , is all about the buyer's decision quadrant . So let's talk about it . Where do you want to start ?
Well , I think we would normally start on the one that probably has the biggest challenge price , where the compromise has to be the most , and that's got to be price , it's got to be budget .
It's got to be budget . This is one that's most fixed . Should we set it up Should ?
we set up what the portrait is . Yeah , yeah , yeah . So there is price , location , land content and dwelling quality or choice of dwelling really isn't it ? It's all about that . So the one that's the most fixed is definitely price , and that's why we lead off on that , because your budget is your budget , is your budget .
So we all have a little bit of movement in their budget price , but not a lot , and so that's the one that is going to dictate potentially the other three quadrants in terms of what you get for your money . So I always like to start with that one .
I reckon there's two things in the price . Ben , you say it's fixed , and I agree 100% , but I generally think there's two prices . For most people , it's their borrowing capacity and their comfort capacity .
Sometimes their borrowing capacity exceeds their comfort capacity , but , generally speaking , most people can't go past their borrowing capacity because it requires an inheritance , it requires a lotto win , it requires some form of X factor event that lands them in a pot of cash . Otherwise , that one is generally unfixed .
So , then , what I want to do is , for anyone who's listening to this Facebook Live , I want to know if you've just recently purchased a property , which do you think of these four , and your partner , or if you bought it on your own , it's fine , but which of these four are a price , location , size of the land and quality of the dwelling ?
Which of those did you compromise on ? Because we'd love to know , and it's OK if you're not sure on the other three , because we'll get to them , but we'd certainly love to see if you put that in the comments below .
It's an awesome question , bryce , because I suspect what's going to come up is look , we went in with a budget , but we probably spent a little bit more than that . That's from my experiences , the days when I was broken day to day . I'd get people across the other side of the desk and I'd say all right , so what's our budget ? Here's what we can borrow .
Now , did you realize you could actually borrow a little bit more ? As your dog goes crazy , which is great , a little bit more , right . And then what I do is I then say right , I'm just letting you know that there's a little bit more . Because they go off into the search portals and they think for $580,000 , they're going to get this type of property .
But when they realize , when they get out in the field , that the quoting is a little bit lower than what they actually sell for , they're normally knocking on the door about a week later and going hello , I'm at that extra . I'm at that extra . So I learned pretty quickly to actually say look , I know you want to get this one for $550 to $580 .
That's the sort of rent . But I'm going to do the pre-approval to $600 , because the expectation is going to be that you're going to probably find something that's going to be at the upper end of that , and it's like anything . We go into a car yard and we say , well , that's the standard model , that's the mid-range , well , that's the luxe model .
Gee , it's got a little bit more bells and whistles , and so on .
I mean I'll stretch yes .
So that's our plays out . So I think that's an important one , that when you are doing it , but there is a ceiling Most of us have that ceiling in terms of what we can afford .
Yeah , so that's price . The next one is location bend . Now , the three key words in real estate have always been the three L's bend location , location , location . And you see it all the time where people with face .
They get teased with the location they want to be in and then , as part of television template , we take them to a further out suburb bend with a nice house , yes . And we try and entice them with the idea of more house , shinier taps , newer carpet , all that sort of stuff .
But they have to compromise on where they want to be and , let's be honest , 8 and 1 half out of 10 times they generally want to go back to location , which is why we've come to the conclusion and been sharing on our podcast for many years now , that location does all of the heavy lifting at about 80% bend . It's almost Pareto's principle there 80-20 .
80 on the location , 20 on the dwelling .
Well , because once you put those two components together , you then lead into that next component , which is the sort of what type of dwelling and what land content am I going to get for my money ? And that's I mean . Ultimately it's land that appreciates in value , that's for sure . So , what with my budget and my location ?
How much land do I get for my money ? And then what dwelling is going to sit on that land ?
Totally , Thanks for all the folks and thanks for everything . So let us know if you've compromised on price or location before , and also let us know if you've bought something recently and did you tempt yourself by going a couple of suburbs out or were you tempted to just go ? No , I'm going to stick with the location . So what did you compromise on ?
And maybe share some of the story in the comments box below . But we've gone from price , we've done location . What's next , Ben ?
So what's next in terms of location is land content price . So this is basically bang for buck .
What are you going to get in terms of price of land and that content piece and what's going to sort of fit onto that land is the way in which I look at this like , in other words , I might be able to afford an apartment in this location , I might be able to afford a townhouse , I might be able to afford an old villa , or I might be able to .
I might be blessed in terms of my budget and the location . Then it could be also a beautiful freestanding house by itself . So , with all of that sort of coming into it , there is a land to asset ratio that we're talking about there . And also , why do I want to go here ?
Because what we are ultimately talking about in the buyer's decision quadrant is demand .
We're actually , if you think about it more broadly , we're asking of a demand conversation here , and we all know that price movements are a product of limited supply and high demand , and so we are trying to tap into the psyche of the buyer in terms of how they make decisions , and that's why Bryce says you know , this is your domain skill as one of Australia's
leading buyers agents . You know all about this in terms of the conversations and the compromise that people are also doing .
Yeah , because it's kind of , isn't it ? If you've got a price and a location that's fixed , all of a sudden it just becomes a funnelling exercise . From highly desirable is the four bedroom house with a bit of land and somewhere to swing a cricket bat out the back .
But if your price and your location are fixed , it just starts to become an exercise on okay , that's nirvana , and you may end up in a one bedroom flatbed with the least amount of land content . Based on the fact that if you're in a highly desirable suburb and your price is fixed , that could dictate .
And you want shiny taps , that might dictate that you're in an apartment . Or if you're prepared to have something that has some renovation potential , that's a bit older and a bit more rundown , you might be going from an apartment to a townhouse or a villa unit .
Or , likewise , if you are at the entry level for a house but you want more land content and you're prepared to compromise on the next one we'll talk about in a second , that really becomes a funnelling exercise for you .
And it does , and there was a good question there from Matthew . I think before about that in terms of asking around capital growth and compromise in terms of new and shiny and flash versus an asset that you can add value to . So I think from that point of view that's where the two bottom points of our quadrant are . Okay , I can't afford that dream home .
I'm going to have to compromise if I want that location and why . You also see predominantly a lot of interest in ugly ducklings or renovators to lights in the great locations because that sees those people who dream of that land content in that good location to try and get into that particular market .
So there's a lot of competition which sometimes leads to the property being bought at a higher price point when you wanted to add that value in the first instance , because there's a lot of emotion around getting into that location .
Yeah , true . So we've got Ben Mattis said , quality is compromised , so we are able to increase the value of the property through further investment .
So keep it coming .
folks , let us know if you've had to compromise , if you moved a couple of suburbs out , which of the three quadrants so far you have compromised on ? We are , of course , talking about the armchair guide to property investing . I just will put a link up on the screen .
If you want to get a copy , we'll give you a free one , ben , if you tell us where to send it . But the last one of the quadrant , ben , if we've gone price , location , size of the land . Number four is bring it home come on .
Well , it's the quality of the dwelling , basically .
So what we're talking about is this compromise that we want to potentially make , and so the way in which I try to describe this is , in some relationships where people go into a property , they can visualize themselves living in that property and hosting dinner parties and creating memories in that particular property , as opposed to sort of going into that ugly duckling
or renovators delight that I was talking about before , where they just cannot bring them . So , oh , this is honey . We are not buying this property . It's an absolute dump . I've got more important how do I socially feel about that asset ? Now ? The husband or the wife could see the vision in the property , but the other party's not interested .
That can often be the case as well . So there's potentially compromise in terms of and I've said to you all along , and I'm a big believer in this if you can buy the ugly duckling and turn it into a black swan and you're in the best location , you get in and you get a good land content , that's a pretty good compromise right .
That's a pretty good win if you can get into those locations and still put it into the budget . But in most cases there are going to be buyers who want a a walk-in turnkey solution and their property is done for them .
And there's going to be other buyers who are willing to put a little bit of you know good old hand and grease oil into getting the getting the product up to Hand and grease oil , hand and grease oil is that the way you say it . That's the one I'm looking for a bit of elbow grease .
So you put a bit of elbow grease into it and you get to an outcome that you're looking for , but you're still there's still always going to be a compromise attached to that .
All right , we've got some feedback here . Ben Stephen Butchers has said we compromised a little bit with the location . We would have loved to be a bit closer to town , but over the years it hasn't been too bad . Value has gone up and area is growing constantly . That's a good one .
That's an awesome one Thanks , stephen Dominic has said just bought a house , compromised on the location to move closer to family and mates , plus the golf course , ben with a .
That's a plus Happy with the golf course .
Yeah . And then the last one from Ant Dance says we brought an average house in the best suburb in our town . Oh , that's textbook . We like that . Ant yeah , In our town and it's still improved in value . We are very happy Five minutes to work . Children walk to school , Ben so there you go , there you go . It's resonating with people . People .
If you're buying real estate , you need to know the buyer's decision quadrant , and our advice , Ben , is you need to know the buyer's decision quadrant before you start searching with a significant other . Because you need to know in advance what you're going to compromise on .
Expectations . You need to understand each other's expectations and what they're looking for , because somebody's got to move . Because I've never seen perfect alignment in these conversations , there's always got to be some wriggle room and compromise .
Well said , Ben , and what I've always said is this I've rarely seen 10 out of 10 properties . People who have unlimited budgets can often get close to a 10 out of 10 because they've just got , they can just throw money at the solution . But for most of us , mere mortals , there's not 10 out of 10 properties .
So look for 7.5 to 8.5 nines and they are consistently going to do what you need to do . So they are sheltered . They aren't perfect . We need to compromise on something . So just to round that out again , we've got to . I've just given me a funny look there .
But just to round that out , just the quality of the good old internet . We're just battling through that , but we're pretty good , we'll keep going .
I just can see out of the corner of my eye this panic . But yeah , so there you go , folks . Chapter 7 is the bias decision quadrant , and how that plays into the actual purchase of the asset Makes it really important .
You are going to compromise on at least one of them . That's the takeaway here . Maybe See you next time page number 154 , Ben .
So if you want to have a look and play along at home , we're going to put some links in the comments below to let you know what the previous Facebook lives . We've done , Ben , with the previous six chapters so you can go back and watch those .
But if you do want to get a copy , as I said hopefully Stiggy will help me out here There'll be a link on where to go Ben's letting us know there , or just go to your bookstore , Ben , go to your bookstore , pick up the copy and pick it up . So there you go . Any closing remarks from you before we ?
head to home . So what have we covered so far , mate ? What have we covered ? And a little sneak peek in terms of the next live .
Well , mate , when we are about to step it up big time because we are going to go from part . That's conclusion of part two . Part three is all about the action , ben . So we are going to prep and get ready because we say how to retire on $2,000 a week , ben .
Right , yes .
So we're about to prep and get ready on what that looks like . So stick around , folks . If you're not , if you're seeing this Facebook live and you're not following the property cash , just hit the like button so that you get notified , and we'd love you to do that . But , ben , each and every week we have a podcast . We've got one coming out .
This afternoon , we had a chat with the CEO of the Property Council of Australia . Is it property council of Australia or property council of Australia ?
No , it's all , but they just , they , just . They call themselves so PCA , pca , but yes it was an amazing chat . Ken Morrison yep . Very insightful Ken .
Morrison is exceptionally intelligent , articulate and nosy stuff . So that's on in a couple of hours . We'll release that this afternoon on how to get our property market back on track with the seven point plan . So it's exciting .
But should check it out .
But there you go , folks . Thanks for sticking around . I hope you enjoyed that . The buyers decision quadrant , let us know . Send us a note . Ping us on socials . Let us know which one you've compromised on . Keep leaving the comments in the messages below , ben .
But until then , we will see you on our podcast each and every Thursday and you can check that out at thepropertycouchcomau . Hey there , folks . Bryce here again , and we've got something super exciting to share with you , because we've been working hard on creating a brand new course that perfectly compliments the book and this mini series .
It's called how to retire on $2,000 per week . In this course , we'll reveal never before seen insights into how we created each of the case studies in chapter 10 of the book . In fact , we're going to make it available to you first , just for being a part of this awesome mini series .
Simply go and get your hands on a copy of our bestselling book for free , and everyone who got a copy during this mini series will receive a special discounted price that won't be available anywhere else .
It's our way of saying thanks for tuning into our armchair guide to property investor mini series , which we hope is adding value as we show you how to retire on $2,000 per week .
All you need to do to get your hands on your free book is go to wwwthearmchairguidecomau and give us two things One , tell us where to send it and two , pay for the postage and handling . And that's it . We'll do the rest .
Once you leave your details , we'll rush out a copy to you and you can start reading along with us as we unpack the book chapter by chapter here . Once we release the course at the end of this mini series , you can dive straight into the teaching and start creating your $2,000 per week . So go to wwwthearmchairguidecomau today . It's right , enjoy .