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 wwwTheArmchairGuidecomau . 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 . Hello guys . That's how many chapters to go , ben ? Oh , only two . Only two chapters , because we're at . Oh , actually I can't count , because eight Right .
Yep .
Well then we're going to do chapter nine , which is Just for anyone who's been playing along at home . We have never discussed chapter nine publicly outside of the book ever before , so stick around for that .
And then , if that's two , then the last one is case studies , and we're just back and forth on whether or not the case studies can be done on Facebook Live . So we're just , we'll work it out .
But you're saying you're right . So at the end of today's Facebook Live there'll be two to count . Two I'm not sure . Let's read them out , let's get into it . What are we talking about today ?
I'm feeling Watching my back there . I appreciate it . I'm learning about you today , ben , so what we've done Right , yeah , so I'm going to set the scene right , because there's three parts to this book and the first part is really setting up the foundation . So , basically , part one is the foundation .
Yeah .
Then part two is the theory , so the fundamentals of investing the property investment formula , the psyche behind price and the buyer's decision quadrant .
Mm-hmm the theory .
And then bang , we're going to just go into the action , right ? So knowledge is empowering , but only if you action on it , ben .
Action on it .
Action on it , yeah , therefore cover for the action , okay , which is essentially saying , isn't it , ben ? That for anyone out there who wants to give you a one-size-fits-all cookie cutter production line approach to investing is Just just selling you a pup .
They are totally selling you a pup , bryce , and People are complex , mate . We have different needs , we have different wants we have , and so part of this is learning about you is really sort of saying learning about yourself in terms of what type of investor you are , yep , and what type of tactics and strategies , yeah , may you be able to implement .
This is one of my fun . So I take a . Can I tell you a quick story , brass ? I love stories you got good so . So , when we're so this is what we're talking about here really is what the advisor so a qualified property investment advisor in our business Basically goes through these stages right .
So we're having a conversation about who you are , what you stand for , what are your goals , big rocks in the jar , what type of investor do you want to be ? And that was my fun bit . I still love reeling off the active worker , the active weekend worker , the active manager , the passive investor and the pure investor .
Yeah , and I just are just the looks on people's faces as they're contemplating , well , what the hell does all of that mean , and and how does that work . And then , but by the end of it , once they get the explanation , they're like actually , yeah , that's really important , because how active do we want to be , or how passive do we want to be ?
And and if we are a pure investor , what are our risks versus what are our rewards ? So that that , to me , was always a fun , fun conversation that I had when I was advising clients .
Mate , we actually talk about passive versus active investors in the podcast . That's this going live this afternoon at three o'clock , so in about two hours 45 minutes . So check that out .
Yeah .
Ben , and we've been reading from our best-selling book , the armchair guide to property investing how to retire on $2,000 a week . Yeah , so what I want to say to folks is there's an opportunity to get your hands on a copy of this book , effectively for the cost of shipping it to your door .
So , basically , we've bought the book , we we've pinched some money out of Stingy's pocket , so she's gonna pay for it and so therefore , she'll buy you the book . But , all jokes aside , we've got some from our Publisher in the office here , so we'll get it out to you as long as you pay for shipping .
So if you go to the armchair guide , comau , that's where you can go and get it and they'll be on the link on the screen , right . So , ben , I want to , I want to , I want to get some .
I'm gonna read through out you hinted at it , but I'm gonna read through the the types of Property investing on a , b , and then I want people to put in their comments below which one they they relate to the most .
But if they could put two in , ben , if they could put the one that they relate to the most , and Then the second one will be the one that they want to be the most , because someone might be an active Investor but wants to be passive .
Yeah .
I'd be active and happy to be active , right ? So here we go . So there's the active worker . Yes your hands are 100% of the time You're just doing the property things . That's number one .
So number two is the active weekend worker , which is the fact that you got a job , ben , and on the weekends You're doing nothing but painting and chippy work and sparky work and managing contractors and all that . So active worker number one , active weekend workers number two . And then the active manager .
So you are project managing other people doing all that stuff . So there's your three categories of active . And then there's the passive . There's the passive investor , which is , we say , you . That's where you're the true investor , where you're just investing for property , investing in property , and then you just make sure that it's on track . But you're not hands-on .
Where you're a pure investor , where you just go . I Just need you to do everything . Just let me know what the outcome is .
I don't need to know anything about it .
So folks , active worker , active weekend worker , the active manager , the passive investor and the pure investor . So you , in the comments below , we'd love to know which one are you . Are you one of those and which one would you want to be , ben ?
And Bryce , what do you reckon our sweet spot is ? What's the ones that we normally do most of our work with in terms of ? Because the three active pieces there are workers , right Worker , worker , active manager , working for a return . So that's going to take up your valuable free time to do that .
So what do you reckon is the sweet spot , the one that we love the most ?
Well , ben , we're always about passive income , but taking responsibility for what you're doing .
So therefore , if you're wondering between passive and pure , they both have the same goal , but one is just like care factor of zero just get it done and then , if something goes pear shaped , well , then they weren't involved in decisions , whereas we're actually saying outsource the execution but don't outsource the understanding .
And so , therefore , if you understand what's going on , then you want to be in the sweet spot of passive investor Ben .
Yeah , we often talk about this concept that investing in property , being a passive investor , shouldn't take more per property than 10 hours a year , bryce . It shouldn't take any If you've got a good property manager , you've got a good tenant and they're doing their regular six month inspections and reporting to you .
So we always refer to that as every now and then we want you to look over the fence , lean in , have a look at the conversation , look all looking good , nothing to see here , and then move back on with your life . The challenge sometimes with the pure investor is someone who's usually very , very time poor . Sometimes in our minds , they also have more money .
They can go off track pretty easy , so you set up a plan for them .
But when they do finally lift their eyes and do something over the course of several years , what they're basically doing they're oh , that's not working , oh , let's solve that , move that , and they just make irrational decisions because they haven't been engaged and they haven't got a level of understanding .
Our whole purpose of why we do this education , bryce , is purely around this idea that we want you to have some accountability and engagement , because if you're working with professional advisors , they want a two way conversation . They need to have . You know , the whole idea of coaching and guiding and teaching is around them , having some competency as well .
So it's not all just one way traffic , because what can sometimes happen is if you get the wrong advisor and they've got a self interest , they'll just feed you all this rubbish and you'll just buy it and then you'll think , well , these guys know , but in reality they're just lining their own pockets and lining yours .
So that's why having some level of understanding and that's why we spend all this time educating people . So I think that's a good one . And they were the five .
And so the ones we love the most are the passive investors who lean in every save three months , six months , check up on it and then lean back out and get on with their lives and they're building a long term passive income for life by the $2,000 a week per week that we put on the book event .
So now I want to we might break some myths here around the perspective on how long people should be investing in the market , because we're breaking it down to the speculator , the short-term investor , the medium-term investor and the long-term investor .
Ben , and I'd certainly love to encourage anyone who gives us some feedback on how long you would consider short-term , because I reckon our definition of short-term has gone a surprise a few people .
It is In terms of yeah , if you talk about Cheers Bryce , speculation is buy , sell , buy , sell trading , short-term 12 months , two years , red or black . Speculation for us is really in property senses , it's around one to six years . So if you're going to then speculate because it's a bit like this is the other little story I like to tell people .
When I was advising Bryce , They've had a beautiful , big , heavy curbsav , cabernet Sauvignon , right , they make these most amazing wines , but if you drink it too early , you are drinking something that does not taste . It hasn't reached its premium , right .
So what you want to do is you want to lay it down and you want to pull it out 10 , 15 years later , right . So that's what we're talking about here . This is like property investing should be like that big , heavy cab-sav that over time just matures and it's beautiful drinking after that period of time .
So that's the story we like to talk about when we talk about short , medium and long-term . So what is the short-term number that we talk about ?
here , bryce . Ben , you'd think the short-term was for a lot of people would be under five years , but to be honest , we've got short term at 7 to 15 years , ben .
Mm-hmm 15 . That doesn't sound too short at all , some people would be thinking that was long term .
Ben , We've got 7 to 15 years . The medium term is 15 to 25 . And then long term is effectively intergenerational .
And that's the beauty . I mean , if you're thinking about the properties that we've bought over the journey , your portfolio for 25 years of holding those assets , you've got cash flow streaming in off those assets . So that's a beautiful thing , right ? That's the legacy piece for generational wealth .
So we do believe that and that is something that we want to change people's mindsets on , as opposed to , everyone can only think five years . If you're only thinking five years in property , I think you're missing the point . So it's really important to get that message out there . So that's our theory around residential investment in property .
The other thing we also talk about in here Bryce , in Chapter 8 , is risk profile . Mm-hmm . Now we keep it relatively simple , but we work through low risk to high risk and then we've got moderate in the middle and low moderate , and what that really refers to is what sort of loan to value ratios are you willing to take on ?
What's your appetite to invest in what is traditionally a low volatile asset ? But just understanding , there are so many risks there's regulatory risk , there's tax risk , there's job risk , there's leverage risk , there's income risk , there's tenancy risk , there's health and well-being , all of those things .
Once you understand all of those things just gives you an idea in terms of what your risk profile is and that will help you and aid you in terms of decision making around whether property is right for you .
Then what's interesting is , in this chapter we broke it up between investor considerations and tactical considerations . So the investor considerations , like you say , is the risk that we're talking about before , whether you're an active worker or weekend worker . So we've got some feedback .
Alexander Skelton has said to question number one that they're passive and question number two they're happy to be passive , Ben . So that's good news , George Calanikos . No , let me see if I can do this , Calanikos . There we go . George Calanikos .
George will love George .
We know George from way back . Yeah , oh , that's right . I think , I know who we're talking about there Passive investor and prefer to stay passive , which is great . And then we've got Sacha . Sacha is a weekend worker . Ben enjoying being a weekend worker Awesome . And then Megs has gone passive . Yep Megs wants to go from passive to pure . That's interesting .
Oh well , hang on and hide of the stick .
she says Well , I don't mind you going to pure . If your definition of the pure investor is you're an educated , passive investor . The problem that some people have is they go straight to pure and they don't take an interest . We're sort of saying you can still be passive but not take . But you're not getting your hands dirty .
You're not project management , you're not , you're not working at your craft , you're just taking an interest in your money and how it's working for you . That's getting that balance right .
Hey Ben , I just want to put a little throat out there . Meg said hide of the stick . The reason she said hide of the stick is because Iva's face came up for five seconds , right . But here's the deal , right ? Knowing Iva , she'll want to delete this video later .
So if you could put a message in the box here don't delete , that'd be great , because then it'll go through all the feeds and then we'll put her under a bit of pressure not to delete it . So , folks , we can see the stick , you can't at the moment . And she has a little bit of steam coming out of areas , which is always a bit of fun for us .
I don't want to make a mistake , so I guess it doesn't make too many . So the tactical consideration's been so we go through that in a bit of detail in terms of how much you spend on the property research . So basically you can see the whole basic standard , advanced are on page 75 . Get yourself copied so you can check that out .
We also give some timing in terms of how long it takes to . On the area location Basics standard is 200 , advanced is 500 . So there's a bit of work in that . But I want to finish it off with the tax implications , ben , because it's a big point around the various gearing . So big topic .
We give half a page to Well , mate , there's so much gold , we've got to fill it .
Well , the point being is that there's so many books on tax and property and tax . We don't invest for tax purposes , so that's exactly what we define , what they are , and you've got to understand what they're doing . So I like the idea that we've just explained .
Negative gearing is basically when there's a loss and you can recover that for the short period of time , because it's not a strategy , so that's why we don't give it the oxygen . More gearing is when , basically , the property's income is covering its costs and the passive income .
Or positive gearing is basically when the property is paying for all of its costs and delivering a little bit of income to you that you have to pay tax on .
So , ben , the way I like to think of it is always through a story , as I was talking about the camera . So think of the bath , ben , imagine the bath . Let's say that the bath represents the right at the top of the rim , represents the expenses and the water level represents the revenue .
So a traditional bath is traditional negative gearing , ben , there is not enough revenue to cover the the outgoings . Therefore that is negative gearing . Imagine if , as my kids like to do , ben , they like to get to the edge as best they can , so they have the bath sitting just at the very top there and any movement will actually tip it over the edge .
That's neutral gearing because the revenue equals the expenses and , ben , positive gearing is quite simply when the bath is overflowing . It means that the revenue we have associated with the asset is over you .
But here's a little spin .
Here's a little spin . You can have negative gearing , but positive cash flow . You can , because once you take into account the non-cash deduction the greatest one being depreciation but you've also got bank loan establishment fees and all those things . When you take that into account , it's like what would you say to that Ben ? It's just like turning the .
I don't know , probably taking the bath analogy too far now , but it's like getting free cash .
I know you're putting in a bucket into the bath and so it overflows because you've got that bucket . Is that good enough for you ? Actually that's something , yeah , so you're putting the depreciation bucket into the bath .
Yeah . And that just takes a bit of a tax flow . You haven't had to do anything .
You don't have to have any water . It's just a bit of volume . It does a bit of volume going into the water mass and it obviously overflows .
So , folks , you can have negative gearing with negative cash flow , but you can also have negative gearing with positive cash flow because of the non-cash deductions . But , generally speaking , the gearing around the lending negative , neutral and positive , and then the negative scenario you can have negative cash flow and positive cash flow .
So your strategy should be built around your household cash flows and , obviously , what blend of properties you're looking for , whether it's growth assets , balanced assets or yield assets , which we've talked about earlier , and that is a perfect segue into our next chapter 18 investment strategies .
Ben , Look at that I know .
I know where we try and paint a picture of the types of areas and the types of properties that you need to be buying for either growth or income .
There I say , one of our greatest frameworks , ben , that we've never spoken about publicly before , and we will do it next week .
The 21,000 people who have got the book so far . Bryce 21,000 are the only people who know that information to this point .
Well , we're going to reveal it next week . We're going to do this . Got one here from Sammy Richards . It says they're an active investor . Very good , Melissa Hill said active manager . Want to turn passive once we're through the accumulation phase there you go .
That's a good strategy that hands on .
Yeah , and then Meg's has come back to us again . Don't delete the video . Maybe post past . Maybe put a smiley face on it . Iverson's replies . Yes , that's a great idea . Very good , there we go . So there we go .
Just a reminder to anyone who's watching this that we have another great episode that's coming out this afternoon , ben , on the Property Couch , at 3 pm Australian Eastern Standard Time . So we want you to check that out . So why don't you go to 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 in to our armchair guide to Property Invest in 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 , enjoy .