2 Properties to Financial Freedom: Looking At The Numbers

[arve url="https://www.youtube.com/watch?v=NoJQI7cP6vs" mode="lazyload" align="center" /] In this episode I go through some of the numbers behind the 2 Properties To Financial Freedom Strategy so you can get an idea of how the numbers could work out in theory. Book a Free Strategy Session - https://onproperty.com.au/session 2 Property Strategy - https://onproperty.com.au/2properties 0:00 - Introduction 0:41 - The basics of the strategy 2:28 - Looking at the basic cash flow of the strategy 6:34 - What sort of income can this create when fully paid off 9:14 - How long does it take to pay off these properties 12:53 - What's the rough annual income after expenses? 14:57 - What if you buy more than 2 properties? Resources Mentioned in the Video: Property Tools - https://propertytools.com.au Recommended Videos 2 Properties To Financial Freedom - https://www.youtube.com/watch?v=Pj8gLiDEz8Y Transcription: We've talked a lot about the two properties to financial freedom strategy and in this episode I want to go through some of the nitty gritty and the numbers behind this strategy so you can see how it works in action. Hi, I'm Ryan from on-property helping you achieve financial freedom and if you don't know what to properties to financial freedom is, I'll quickly explain that before we jump into the numbers, but I have done a full video on it with Ben Everingham where we talked for about an hour. I will link that up in the description down below or you can go to on property.com.edu forward slash two properties to check out that episode. But the basis of the strategy is that you purchase two houses. These houses costs about $400,000 each and they rent for about $420 per week each on those houses. You then build to granny flats that costs $120,000 each and rent for about two 80 per week. So all up you've invested $520,000 per property and each property has two incomes renting for a total of $700 per week. Or if you combine the two together, then you're looking at 1 million and $40,000 renting for 1400 per week and the goal here is to get you to a baseline of financial freedom in the next 15 2025 years. So we're going to have a look at the numbers behind this, see whether or not this works so you can work out whether or not you think this strategy is going to be right for you. I think it goes without saying that this is not financial advice. We're going to be looking at, you know, just an excel spreadsheet of how the numbers could work out in theory. But in real life stuff happens. Sometimes properties rent for more than what we're talking about. Sometimes you get more rental growth, sometimes you have vacancies, sometimes you have more maintenance, sometimes you have issues with your rental manager. There's so many different things that can happen. So these numbers are not to be considered actual facts, but a very rough guideline of what could be possible. Okay, so this is not what everyone's going to achieve, but it'll give you a rough idea and then obviously you can then apply your own discipline and your own analysis when it comes to investing in a property. So what we're gonna do to start with is look in this website which has property tools.com.eu. This is a calculator that I created myself and we're going to put in a total purchase price of 520,000 and our rental income of 700 per week, we're going to interest rate of 5% in there as well and a deposit of 20% in. We scroll down. We've also got property manager fees, vacancies factored in, repairs and maintenance, insurance and council rights in that as well. So this does take into account a bunch of the fees associated with owning a property and renting it out. And again, these are rough figures you could go through and do this yourself to get a more accurate result. You can sign up@propertytools.com dot. A U if you want to have a play around with this calculator. But what I wanted to look at was the weekly cashflow before tax and we can see that th...