What does real strategic property investment look like? In this episode, Melinda, Scott, and Stacey from the Streamline Property Buyers team share the story of a Brisbane couple who partnered with us to build long-term wealth, without compromising their lifestyle. From defining clear financial goals to securing two high-performing assets, this case study illustrates the power of expert guidance and considered planning.
You’ll gain insights into:
- How a tailored, data-driven strategy supports sustainable wealth creation
- The value a Qualified Property Investment Advisor (QPIA®) brings to the process
- Balancing lifestyle needs with long-term investment goals
- Why finance structuring, collaboration with a professional team, and future-focused planning matter
- The critical role of local market knowledge and suburb-specific insights in portfolio performance
Tune in to understand what sets Streamline apart, and why strategic, long-term thinking continues to deliver exceptional results for our clients.
Connect with Us:
- Listen on Apple Podcasts https://podcasts.apple.com/us/podcast/brisbane-property-podcast/id1509129258
- Listen on Spotify https://open.spotify.com/show/5tODCtY54iQrxadNqqmevs
- Subscribe on Youtube https://www.youtube.com/channel/UCW30uBCnHQ2YllnwGKHNfxg
- Streamline Property Buyers Website https://streamlineproperty.com.au/
- Ready to work with us directly? https://streamlineproperty.com.au/contact/
If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast with others you know will benefit from the information we share!
.
.
.
.
.
Transcript
0:02: Hello everyone and welcome back to another episode of the Brisbane Property Podcast with Scott and Melinda Jannison, and joining us today is Stacey from our team.
0:10: Welcome, Stacey.
0:11: Thank you.
0:11: Hello.
0:12: Stacey May is a qualified property investment advisor, alongside myself and also Briley Maddick, who also works with the Streamline Property Buyers team.
0:21: What is the difference between buyers’ agents who Have qualified property investment advisors on their team versus other buyer’s agents.
0:28: Well, I think that difference is quite simple, and that is we have the ability to provide strategic advice in relation to property investing and really tailor that advice to the individual.
0:39: So what we are going to unpack for you today is just one of the, examples of so many people that we have helped in the past, so that you can get an understanding of You know, what we do is qualified property investment advisors and what difference that can actually make in portfolio planning.
0:57: I just think at the moment, there’s so much noise in the property investment space.
1:01: There’s so many people that think you need to build a portfolio very quickly.
1:05: You need to have a high volume or a high number of properties in your portfolio to achieve the goals that you’re trying to achieve.
1:12: And we’re actually gonna cut that myth.
1:14: We’re actually going to provide you with real evidence as to how You can, plan out a portfolio that may not actually fit the agenda that you might be hearing about on social media platforms at the moment.
1:26: So hopefully we’ll provide some aha moments and some great insights for you.
1:30: I, I’ll start off with, I always, I always, I will say this, anyway, I’ll throw it out, but it’s, I, I find it interesting how people trust, just buyers agents out there in, in the industry at the moment.
1:43: , there seems to be so many as well, and I’m not here to bag out buyers agents either.
1:48: but to trust people to, to invest their hard earned money, and let’s say that just over a median, median price in Brisbane over a million dollars, if you’re investing an amount of money like that, you, and you’re not using people that aren’t qualified, I, I actually, I, I find it really, really strange.
2:03: We are so lucky in, in the team here at Streamlined to have 3 qualified property investment advisors.
2:08: , and I think for our clients, it’s just a game changer.
2:12: It, it, it changes everything.
2:13: It opens your mind up to numbers, and investing in property is, is about numbers.
2:19: and I think that’s something we people really need to be mindful of, when choosing who they want to work with and who they want to get the advice with, and, and, and to trust people to spend their money, when investing in a property, because it, it can make or break, your income as well.
2:35: And with a story we’re gonna talk through today, just to give a bit of an example, for our listeners, how, how you can set yourself up with a really good strategy for the future and set yourself up for retirement, which is what we all want, we all want to do.
2:49: We all want to live, we want to continue living our life.
2:52: and this little example we’ve got today gives our listeners a bit of an understanding of probably a little bit what happens behind the scenes, I suppose, from a, from a qualified property investment advisor.
3:02: Yeah, so Stacey, it would be amazing if you could just step us through, the family that we’re gonna talk about today, because this is a couple we worked with back in 2022, but can you help us understand Their circumstances when they first came to partner with us.
3:17: Yeah, so they’re actually Brisbane locals, and had already purchased their home, which I think is a big piece of their story.
3:25: we often look at how clients have, built in the past in terms of holding a home and think that that’s really something that is an advantage when building a portfolio here.
3:36: , they were fairly young, so 36 and 44, when they came to us, and what they knew was that they just wanted to build wealth for their family into the future.
3:46: So they had a goal, and I think that was a very clear goal that they shared with us.
3:51: We want to grow wealth, but we don’t want to sacrifice lifestyle.
3:55: So many clients do come to us with that, and Investing shouldn’t impact on the lifestyle that you have there, particularly for these people, they had a small, family, so young child.
4:06: and that was a really big consideration for them.
4:08: I think that they, from memory, their, their young child was just starting school.
4:13: so that, that was the age group.
4:15: And I know that a lot of people listening to this podcast can probably relate.
4:18: To that stage of life, it gets a little bit busy.
4:21: routine comes into, play every morning, having to get up and pack school lunches.
4:25: So, you know, busy life, they didn’t want to sacrifice the way they lived, but they did want to start thinking about building wealth outside of the family home, and that’s obviously something that we were able to sit down and, and get a, a snapshot view, of for them and then set a plan in place.
4:42: So, What is the first thing that we do when, when people partner with us for an investment purchase, Stacey, we’ve, we’re we’re collecting information.
4:50: Yeah, we do really take a lot of time to talk, talk with them, understand their goals, what’s important to them, but really, gather all of the information around their personal circumstances.
5:00: I think that’s so important.
5:02: but also get to know their professional team that they’re working with, Talking with their accountant and their mortgage broker to really understand what’s been happening to this point and making sure that we’re all working together really becomes key.
5:14: I, I think that’s a really important thing as well, that, that team around people when, when they’re investing in a property.
5:21: we don’t, we can’t give investment advice, but having the relation to financial products, but, but having professionals that work with them, so having your accountant, having your financial planner, have your broker.
5:33: Have your buyer’s agent, so having a full team set up and people that are qualified in their sector to give that information, but be all to be able to put it together and and and make, make the cake together and combine everything from everyone’s skills and from everyone’s professions and qualifications as well.
5:52: Just I think to, to help listeners understand why we would be seeking input from a property investor’s professional team, and, and by the way, not every property investor that comes to us has really thought through.
6:04: , their professional team, they come to us as buyer’s agents thinking that we are a one-stop shop.
6:09: We’re not.
6:10: We’re always going to be working with the mortgage broker to, understand why a loan might be structured in a certain way.
6:17: We’re always going to be asking our clients, have they had input and advice from their accountant in relation to tax implications for the way they may have structured their finance, or alternatively,, the, the structure and the entity that they’re purchasing into.
6:31: But importantly, we’re always asking, what is the plan for the property that we’re looking to buy?
6:37: You know, what is the exit strategy?
6:39: Even if we are working with home buyers, which I, I digress, but, you know, we really want to know, is this a forever home or is this a home that might be converted into an investment property, because the answers to those questions will help us to determine how we.
6:52: Work with the professional team that’s around that buyer to ensure that their interests are protected.
6:57: And this is what it’s all about.
6:58: It’s not a transaction that just ticks a box for us as a team.
7:02: It’s about ensuring that the property that we target is aligned with that specific client’s long-term goals, and that the way it is purchased, and the way it is financed also aligns with that person’s long-term goals.
7:15: And I think that that’s a big missing piece in our industry.
7:18: A lot of people, even that they do come, you know, perhaps with a pre-approval already in place.
7:23: Our job is to actually ensure that that’s structured in a way that aligns with the team’s advice that, that they’re having input from accountant, mortgage broker, buyer’s agent, and sometimes even financial planner.
7:37: Yeah, and that foundational underpinning really becomes, pivotal as we build out a portfolio as well.
7:42: Absolutely.
7:43: So there is a difference in investing randomly, and that would be just, you know, a buyer’s agent asking what budget are you working with.
7:51: Here’s some of the locations that we can target versus really deliberately targeting specific suburbs.
7:57: I know I talks about it all the time that I’m a little bit of a, a data nerd, but we use this, the data for Brisbane, and I’ve grown up in Brisbane my whole life to really pinpoint locations that, that vary in their long-term growth performance.
8:13: Locations that might have higher yields or property types that might have higher yields, because every investor is looking for something different, and there’s no cookie cutter approach, correct?
8:23: So when we’re actually working with people, we’re really understanding what is it that’s right for them?
8:27: What is that balance of growth and yield that’s going to be appropriate for their circumstances?
8:32: Because I know in this young couple’s circumstances, they did not want to sacrifice lifestyle, and that was a big, area that we needed to understand, because most Quality, high growth investment properties, certainly in Brisbane at the moment with interest rates at the level that they’re sitting, they’re going to be negatively geared, and what I mean by that is they’re going to cost people,, an amount per week to hold the asset.
8:58: And, and therefore, people need to understand a comfort level in terms of what they’re prepared to pay each week to hold a quality asset.
9:07: And then we can help them to understand the trade-off between the weekly holding cost and the long-term capital gain.
9:13: Yeah, yeah, definitely.
9:14: It also comes into play as well when you talked earlier about and especially this, this couple having children.
9:21: OK, because children cost money, we know that.
9:23: That’s just life.
9:25: but when you’ve got costs for schooling and lunches and and sport or whatever it may be, all of these types of things can be taken into account when they say we need this much per week.
9:34: , to live, but how much can we invest so you can get an understanding of what their comfort level is when they go to investing.
9:41: And for this couple as well, it was important that they had a small buffer in place for themselves, because with children also come unknown expenses.
9:49: So that was really important for them.
9:51: So just to give you some numbers, the home at the time when they first started working with us, was worth around $1.45 million.
9:59: So they’d actually, purchased it earlier, at a lower price point, and they had a strong equity position.
10:05: And what I mean by that is they paid less than what the current value was, and that uplift in value became equity that they could leverage from to help them purchase an investment property.
10:17: And that’s something.
10:17: That they had discussed in detail with their mortgage broker.
10:21: They were very lucky that they were working with a mortgage broker who was quite strategic and, had their best interests at heart because, you know, the way that that mortgage was set up for them was really in line with what they were trying to achieve long term.
10:35: And they had also had input from their accountant to ensure that the way the mortgage was structured was the most tax effective structure for them, given they Also had a mortgage on their own home.
10:46: So there were a lot of moving pieces to the puzzle, and, and our job was really just to understand that they sought all of that advice so that we were, we knew that we were ready to start on the, the property buying journey, let’s just say.
11:00: So let’s, let’s have a look at the journey.
11:02: and obviously, once you get to that, and you’re looking for the first investment, what do we do?
11:06: How, how does it work from advice and helping people understand.
11:11: What sort of property, where they want to buy, how much the budget, all those types of things.
11:15: Can you give us a bit of an understanding how you sort of work with that?
11:18: Yeah, we had come, they had come to a budget, and had understood that some of the holding costs and things associated with their mortgage broker from the loan.
11:27: the software that we use allows us to input all of, that information into there to really understand then at, when we’re taking into account expenses associated with holding the property.
11:38: , how that would feel on a weekly basis for them, and I think that’s really important to get that comfort level right.
11:45: a lot of people come to us and want to start with, where am I going to buy, but we take it back again.
11:51: Really, pulling that handbrake on to make sure, again, found foundationally, this individual asset can sit within their portfolio.
12:00: Absolutely.
12:01: And so I know in this case, you know, we would enter in the proposed budget as the purchase price, we can structure their finance in the way that, they’ve received the advice.
12:13: So in this case, from From my notes, they were on interest only lending because they still had personal debt, and that’s the advice that they had received.
12:23: but we could also show them using our software, what the difference in cash flow would be if they had in fact taken out principal and interest lending.
12:32: and that’s also a really powerful tool for us to be able to show the difference between cash flow based on simply lending structure alone, not necessarily on the asset that you’re purchasing.
12:43: , from there, we’re able to, as you’ve pointed out, enter in all of the expenses, but also the projected rent that we expect any property, to achieve in the market.
12:54: We allow for things like, vacancy rates, so we assume properties are vacant for a certain period of time each year, because that is the reality of the market.
13:03: Tenants do turn over so we can allow for that within the numbers.
13:06: We can also allow for inflation when we’re projecting forward to see how is this asset likely to perform in the long term over, over an investment period.
13:15: for most clients that partner with us, they’re really not after short gains.
13:18: They’re not after hotspotting.
13:20: these are not the, the things that, that people should be looking for when it comes to property investing, because property is a long-term.
13:28: Set class.
13:29: And there is, again, a lot of noise in the market about short-term hotspots and trying to, you know, get really strong equity uplift really quickly, but the reality is, long-term sustainable capital growth is what builds wealth, and that is what these clients wanted.
13:44: So they’re the fundamentals that, we took from the numbers that we were working with to then go and select location.
13:51: Stacey, do you want to talk us through a little bit about, You know, how we get from the numbers from our software strategy session through to where and what are we going to buy.
14:00: Yeah, so looking at the numbers for this particular client, they wanted to, get a free standing house as their first asset.
14:09: We were, as locals able to help them to understand what type of yields could be expected, in the locations and these types of assets that we’d be adding into a portfolio.
14:18: , so we ended up on a house and land, and the land component was around 700 square meters, for this particular asset.
14:28: and when we had then gone in to do the suburb research, there’s a lot of different things that we look at there before even making the recommendation, on the types of areas that we’re going to be targeting.
14:39: That’s right.
14:40: And so if we have a client that’s looking specifically for a capital growth asset, we have strict objective selection criteria for what suburbs make the Cut, in terms of where are we going to be targeting, because it’s not just a case of drawing a circle around Brisbane and, and looking at everything within a certain distance from the CBD.
14:58: we are looking at lots of things like the incomes, the demographics, the, the breakdown of investors and owner occupiers, you know, where these suburbs are located, how much, potential competing future product there is, that is, what is the future supply pipeline looking like for similar properties in this suburb.
15:17: These are all of the things that must, must go into location selection.
15:21: it’s not just about budget and distance from CBD, and I think a lot of people get very confused by that as well.
15:27: I think, I think it’s also, sorry, I was gonna say when you’re coming to that selection, there’s so many things that are behind the scenes when we do select and you touched on a couple there, but.
15:36: You know, even things like transport and transport corridors, school catchments, lifestyle.
15:42: You’ve got to understand that it has to be desirable for people to want to live there.
15:46: So you want your coffee shops, your, your parks and all those types of things, because that’s what’s going to encourage people to want to live there.
15:52: And it’s an investment, you want people to want to rent there as well.
15:54: That’s right.
15:54: Yeah.
15:55: Yeah.
15:55: And I’d even go one step further in saying that we actually then granually break it down to Street by street basis.
16:02: As locals, we had a couple come in here last week, locating, relocating from Sydney to Brisbane.
16:08: We could help them to understand the streets that they should be driving to no areas, and that’s how deep we actually break that down.
16:15: Yeah, we certainly don’t buy in an entire suburb.
16:18: , in most cases, data might lead us to a suburb.
16:22: local knowledge leads us to a street and a, and a property.
16:25: So that’s, that’s the difference between, yeah, understanding the local knowledge of.
16:30: I felt like I was where is.com last week when we were doing that, drawing a maps saying, drive down this street, drive down this street, have a look at that street, go around here, drive around that corner.
16:38: And you get, it’s, but that’s just local knowledge, knowing where to drive in certain suburbs to be able to say go and drive them.
16:43: And, and have a really good look around as well.
16:45: I just want to jump back onto that software which we’re talking about, and, and another thing that is added in there is things like maintenance.
16:52: So people are always worried about maintenance costs, and I know that there are allowances for maintenance, and things like that, without diving into it too deep, you can obviously put in things like income and, and the tax side of things as well.
17:05: Yeah, so the software that we use does allow us to, Account for the incomes that individuals might be earning, and then it will estimate any gearing benefits.
17:18: Now, of course, we’re not accountants, it’s not advice, but it just allows them to then have conversations with their accountant around the numbers.
17:25: Our Software provides the simulation.
17:28: and I think that’s a really important thing because a lot of people don’t really understand the numbers before they’re getting into an investment, and I think because it is an investment, that’s the critical piece.
17:38: If you don’t understand the numbers and if you don’t understand.
17:41: How much it’s going to cost you to hold the asset on a week by week basis, then already, you’re moving into a territory where you, you’re moving, you’re, you’re exposed to risk because you’re just not understanding.
17:53: what I love about the software as well, especially for our clients that are looking to build long-term.
17:58: is we can really see and project forward what is this asset likely to look like 15 years from now or 20 or 30 years from now, because most clients that we would partner with do have a longer term horizon in terms of, you know, it’s a buy and hold strategy for a very long time.
18:15: and that’s usually where we get the aha sort of moments in those strategy sessions, because people don’t understand the power of property.
18:23: Short-term hype is not how you build wealth in property.
18:25: Long-term capital growth, and compounding capital growth is how you build wealth in property, and that’s something that, we’re able to educate and inform people about.
18:33: Now, as a little bit of a teaser for our listeners, we’re going to throw some numbers at you a little bit later on these investments here, on the projections on what looks like future wise.
18:43: So hang tight, we, we will get there.
18:46: first investment, so as you said, Stacey, land, $700,000.
18:50: 700 square square meters.
18:53: Brisbane purchase, this is 2022, that the purchase was, around 945K purchase price.
19:02: approximate value on it now is around 1.25.
19:05: So I just, can I just say that though, because I, I often see, people cherry picking results from past client purchases.
19:16: we have a number of Clients that have, have obviously performed or, or purchased properties in the past.
19:22: And when we talk about current value, of course, no one knows current value unless you sell.
19:27: I think that’s really important.
19:29: and we’re very, very conservative with estimates of where the current value sits.
19:33: I think a property like this on market would achieve a higher price.
19:37: but we, we can look at that and say, look, approximately $300,000 of equity has been gained since purchase.
19:43: But I’ll also say,, the Brisbane market has done very well in the last 3 years.
19:48: So this is not something that is, common to have that rate of growth so quickly.
19:55: and in fact, most markets around Australia have done very well.
19:58: So most people will have, an equity position if they’ve purchased in 2021 or 2022, and they’re looking at their equity position right now.
20:07: So I, I, sorry, just on the back of that, this, this podcast.
20:10: It’s not about saying how much equity you’ve got, how much money you make on the property.
20:14: This is, this is about the power of strategy, I think.
20:17: Yes, that’s right and also the power of this software that we use and having strategy to understand how to invest in property.
20:23: OK, so we’re not, we’re not just gonna, as Melinda said, we’re not just cherry picking a property and going, oh, I made this much money.
20:29: look, most properties in Brisbane made money.
20:32: everything’s gone up, the market’s gone up.
20:33: Yep, that’s just a no-brainer there, but just to understand and the idea of this just to show you.
20:40: How this couple came in with a young family looking for goals to build grow wealth, we set a strategy, OK, and we’re patient with that strategy, and we select properties that have that long-term growth in it.
20:52: We use the software to help them understand that and have comfortable to know they can live life, they can go on holidays, they can do all those sort of things.
20:59: First purchase, it’s done well, it’s suburb selection.
21:03: There’s there’s obviously strategy behind the selection side of things and then you fast forward to obviously the second selection.
21:11: Which is in 2024.
21:12: Yep.
21:13: Yeah.
21:13: So the second investment, they came back, because they were quite, yeah, comfortable with the first purchase.
21:19: They’d seen some equity uplift, and they asked us to help them with the second acquisition.
21:24: Can you talk us through that one, Stacey?
21:26: Yeah, so the second, purchase that they came to, they had a slightly lower budget this time, so around $800,000 Our team was able to help them to strategically understand how we could, diversify slightly in going into a townhouse market, in Brisbane at that time.
21:44: And We found an asset not far from the CBD that really ticked a lot of boxes for them.
21:50: Yeah.
21:50: And it’s interesting because, you know, on the ground, we were seeing a shift in the market that started to come through in 2023, where we saw that demand shift into units and townhouses in inner city locations.
22:03: in this instance, this client, was comfortable with our recommendation.
22:08: To be looking at that segment of the market, because traditionally, most people think you need to buy a house on land to actually achieve strong capital growth.
22:17: in this instance, they got into the market, and we all know if you’ve been a regular podcast, listener, just how much that, that unit and townhouse market has escalated in value, especially in the last 18 months or So, and, and this has been in the time that these clients have been invested in the market.
22:34: So they have had very strong equity uplift, in, in the 1st, 18 months to 2 years of owning this particular property as well.
22:43: But I think what’s even more important to highlight is both investments that we’ve been able to acquire for them, they’ve been in areas where The, the demographic who live there have been high income earners, and there’s very little mortgage stress and very little, rental stress for tenants.
23:02: And what that means is they’ve had really, really strong growth in rental appreciation over the period of ownership.
23:10: So whilst the yields might not have been as strong at the time of purchase, each year, with the tenancy renewals, we’ve actually seen a strong uplift in the rents that they’ve been able to achieve.
23:22: Now, that is absolutely not something that’s happening across the board in Brisbane.
23:26: We’re seeing many locations where rents are at a point that they can’t rise anymore.
23:32: People simply cannot afford to pay more in the areas that, those investment properties are sitting.
23:37: However, there’s also many other areas in Brisbane where the demographic can continue to pay more.
23:44: And of course, the supply and demand metrics, which is ultimately what drives the, the rental price growth, are in a place where that rental price growth is likely to continue.
23:54: And I think it all comes back to what Scott mentioned before.
23:56: It’s about patience.
23:58: Yeah.
23:59: I mean, you look at that, and again, some quick numbers here, they purchased for about $800,000.
24:04: The rent back then obviously wasn’t this high, but because of the location selection, the rent has, as Melinda touched on there, the rent has increased, the rent has gone up, and it’s now currently rented at $870 a week.
24:16: Yeah.
24:17: And that’s just over 18 months ago.
24:19: So, you know, a really strong rental uplift for that particular purchase, which is fantastic for our clients, because obviously, that also helps to cover the cost of those repayments on a, a week by week or month by month basis.
24:32: So obviously, taking into account, you know, as we talked about earlier, the, the income, the expenses, room for lifestyle, selection, they’ve, they’ve made one purchase, as you said, they’ve gone again from a second purchase, diversification.
24:45: It’s interesting, I hear people say, I need to diversify.
24:47: I’ve got to buy in, I don’t know, what, wherever it may be.
24:52: And they come up with a location.
24:53: So somehow in people’s minds, they think diversification means location.
24:59: Now it doesn’t have to be location diversification.
25:02: You can, you can change to different property types, different property locations within the same sort of area, and move around and diversify in different ways.
25:11: So I thought that was interesting that we, we got out of that one.
25:14: Do you wanna throw some numbers at us, and I did tease the listeners about this one on, and this is what we talk about long-term.
25:22: Investing and being patient, because as, as you said, Melinda, you don’t, you don’t make the money until you sell the property.
25:28: so you don’t know what it’s worth, you don’t know what.
25:30: So when you start to project forward, and, and again, this is through the software, that you guys use, projecting forward to help these guys understand what’s it going to look like in the future when they get towards retirement, I suppose.
25:43: So I think this is the power of the software that we use, and it also helps people to understand the power of compounding growth.
25:49: So that $925,000 sorry, $945,000 single lot home that we purchased back in 2022, we were able to project forward, excuse me, for our clients, over a 15-year time frame to get an understanding of what that asset might look like 15 years from the date of purchase if the compounding capital growth was 5% per annum.
26:13: , and at 5% per annum after 15 years, the value is just under $2 million so it had more than doubled in that time frame.
26:23: and if the compounding growth was a little bit higher at 7%, which is actually more in line with the long-term compounding growth rate here in Brisbane.
26:32: That asset value would be $2.6 million.
26:36: Now, of course, 15 years was, when they’re only sort of 36 and 44 is not necessarily the time at which they would be divesting or or exiting their portfolio because they would only potentially be transitioning into retirement.
26:50: So we were also able to model what that looked like after 25 years of ownership.
26:54: And after 25 years, again, because of the power of compounding growth, that’s growth on growth, at 5% per annum, compounding capital growth from the time of purchase after 25 years, $3.2 million dollar asset, and, at 7% per annum, it’s a $5.1 million asset.
27:14: Now, we were able to obviously model this out for not just the single lot home, but also Townhouse, and for this particular client based or these clients, based on their circumstances and their wealth building strategy and their, their targets for retirement, it was determined that just two quality assets is all that they needed.
27:33: All that they needed to actually achieve their retirement goals.
27:36: We talked through exit strategy with them as well, so that they could understand what are their options when they get to that 25 year time frame.
27:44: , and for them, they’re monitoring their portfolio over time, but they’ve got two options, and they will consider them at that time.
27:50: And one option is to sell one asset that will actually clear any remaining debt on the, the remaining asset that they’ll hold, and then they’ll generate income from that remaining asset.
28:00: So not only will they actually have an equity position that they can realize, And they can actually, put a lump sum payment into retirement funds.
28:10: They’ll also have recurring income during retirement from the second asset that they will hold.
28:14: So it’s a really powerful strategy.
28:16: And I think this is the thing most people think.
28:18: You need 10 or more properties to build wealth, and the reality is that’s just a myth, and it’s not the case at all.
28:24: Quality over quantity.
28:26: Yeah.
28:26: And and long-term, and, and these are the things I’m just picking out what we’re talking about here.
28:30: So we, we’re talking quality over quantity, long-term focus.
28:34: I mean, that is, when you look at that, it’s say 5.1 mil, over 25 years, and as you just said then, you, you pay one off, you’ve got that money.
28:43: To retire, it’s it’s pretty good nest egg to, to sit and retire to on, on just those smaller assets, less hassles.
28:50: so when we talk about ants, fewer tenants to worry about, few hassles, less paperwork, all those types of things, picking the right quality product and not having to just say, oh, I own 10 or 15 properties because, That sounds like 10 or 15 headaches compared to just having some really, really good, good assets in your portfolio as well.
29:10: The other thing, when we look at these sort of properties and you talked exit strategy as well, when you mentioned there, understanding who you’re going to sell it to.
29:19: So that’s one thing when we’re looking at selection for locations is who’s going to want to buy in this area.
29:26: So what’s it going to look like in the future, this location.
29:29: So that you can understand, you know, who’s gonna want to buy it.
29:31: You want it to be desirable, so that when you do turn around and say, well, look, I have to sell it now or I’m gonna hold it, and then you decide to sell it whenever it may be, you know that there’s going to be people wanting to buy in their location.
29:42: Yeah.
29:42: Yeah, I definitely think risk mitigation is something that most investors overlook, understanding what is your default position in the event you have to sell, because we, we always know life can throw curveballs, and our long-term plans might not always unfold in the way we hope.
29:59: So being in a position where you have an asset that’s, easy to sell, I think that’s absolutely critical as well, and that’s part of risk mitigation.
30:07: And our concern is, right now we are seeing markets being shifted.
30:12: we’re seeing that happening in Brisbane, being shifted by interstate investment activity, and we, we can see based on the, the information and data available to us that the local home buyers in some of these locations cannot afford to pay the same amount that the interstate investors are paying.
30:30: Now in those locations, they’re, they’re high risk locations because in the event that an investor has to sell, they’re going to be relying on other investors to replace them because the locals can’t afford to buy, and this is a really critical piece of, Ensuring that you understand the location you’re buying, you understand the asset, and you understand the local demographic, because if you’re exposing yourself to risk in this way, in the event of a big economic shock, international unrest, any of the above, if people move into a, a market or, and then quickly shift out of a market, you will see prices, quite Commonly come down if you don’t have the demand that’s going to, be maintained, and that’s usually local home buyers that, can afford to purchase those properties.
31:18: So I’m going to wrap up here with some key takeaways.
31:21: Who, who wants to start?
31:23: Melinda, you look like you.
31:24: You’ll always start, so I’ll let you talk first.
31:26: Stacey, you can have a think for a sec.
31:27: Can you give me a couple of quick key takeaways for our listeners?
31:30: I think that it’s so important that the strategy must align with your individual and unique circumstances because no two investors that we ever work with are the same.
31:40: Yeah, yeah.
31:41: , and I think as well, just taking, really being open in those conversations around what you’re trying to achieve, where you’re currently at, what the end goal looks like as well, having those honest conversations up front.
31:54: Yeah.
31:54: Perfect.
31:55: I had a few things written down, quality over quantity, long term focus, individual strategy, which you touched on.
32:01: my biggest one for, for people looking to investing in property is tee up, team up with professionals that know what they’re talking about.
32:08: Get yourself a really good team behind you.
32:10: , and I, as I was mentioned earlier, accountants, brokers, people like that with the right focus and the right strategy and the right knowledge.
32:17: and if you’re working with a buyer’s agent, get someone that’s qualified.
32:21: it’s, it’s a massive investment to make or to break.
32:24: So, use someone that is qualified, so.
32:27: Excellent.
32:28: Well, I think it’s been great information for everyone.
32:29: It’s, as I say, that software, it’s pretty mind-blowing when you, when you use it, and I think it does change things.
32:36: It makes a huge change on strategy for investing in a property.
32:39: So thanks, Stacey, for explaining to our listeners more about that.
32:43: And we, I will, as usual, I will let Melinda wrap things up, and thanks very much for listening.
32:48: Take care, talk next week.
32:49: Thanks very much, bye.
32:51: Thank you for joining us once again on the Brisbane Property Podcast.
32:54: We hope you have enjoyed this episode and providing some insights into, you know, how we’re able to help normal families just like you, to invest in Brisbane property.
33:03: If you’ve liked and enjoyed this episode, please share with friends and family, and we would love for you to leave us a review on your favorite podcast player.
33:10: Until next week, we hope you have a good one and bye for now.