All right, day 12.
Now today we're going to be talking about why to buy
property investments, or property in general.
Why do we go through all the effort of getting finance, looking at properties,
running the numbers doing renovations, going through the stress of having debt?
Why are we trying to build wealth through property investment?
It's because we're trying to get ourselves to financial freedom.
We're trying to get to a point where income
comes into our bank account without too much effort.
And we know
that it's going to happen regularly so that when we get to a certain age,
whether it's 40 or 50 or 65 or 70 or whatever it is
that you don't need to worry so much about money.
Because if you have the goal of financial freedom,
and some form of financial independence, that's
why we're focusing on property, because owning your own home
and owning investment property creates a lot of options and it creates
windfalls, creates money flows in towards you
that you can give away, you can spend on yourself,
you can use it to help the community, your family, you can have luxuries.
So hopefully I don't need to convince too many of you
that financial freedom is an exciting thing to aim for.
Even if you're feeling guilty about accumulating a lot of money,
you can give it away to the people that need it the most.
So it's a worthwhile game to play
Financial freedom
is tied at the hip with financial goals,
and if you don't set yourself clear goals,
then it's going to be really hard for you to stay focused on financial freedom.
It's unlikely you're going to get there.
So I highly recommend that you set yourself a goal,
whether that's $100,000 of passive
income a year or $200,000 $500,000, or even if it's only $20,000
a year in regular passive income from property investments.
It's good to set that goal go through the numbers with an advisor
and assess actually how much property do I need to own, how much mortgage debt
is it going to be required, where's the surplus going to come from?
It's good to understand those numbers because
even if you get $20,000 of extra income a year when you do stop working,
when your income slows down, that's going to make a massive difference over
and above any pension or superannuation you're going to get, especially
because you can't always rely on the Government being able to pay that.
So financial freedom helps free you from worries,
anxieties, stress, embarrassment about not having enough money.
It helps you be able to share and it gives you independence
to be able to spend your time on doing the things you want to do.
If you want to spend more time playing golf or helping out the local community
really helps if financially you're secure because otherwise you're going
to probably have to spend the time that you want on leisure, out working.
And one of my friends,
he says that making money is all about getting dignity.
So you feel as a different person, you can you're a much better version of yourself
when you're not worried about how if there's enough money to go around
you can you can level up on who you are and how you spend your time.
So what are our options
for building this financial freedom?
Now we can look at buying shares, investing in crypto.
We can own a business or start a business.
We can invest in currencies commodities.
We can look at speculations.
Speculation might be baseball cards, it might be magic cards, Pokemon cards,
it might be NFTs, there's all sorts of things that essentially
you're not guaranteed of the value in the future and you're taking a bet.
You can
rely on winning the lotto, which a lot of people are waiting on.
You can work harder, you can work longer.
There's a lot of people with a second job like Uber..
You can do that for the short term, but you don't want to be doing that
in your sixties and seventies, if you can avoid that now.
Or you can look at real estate
and I say or but I mean, and you can combine all these strategies
and you can weight your investment options appropriately.
But if you're using real estate, you're avoiding the two
big challenges that come with all of these options is
y'know time and money.
So most people don't have that much money to start with.
And so when you're compounding a small amount of money,
it's hard to get that snowball going and time
a lot of these things have time commitment,
and they take a bit of time to work
unless you get really lucky on some of these things,
you're probably in for a ten to 20 year ride.
So it can get frustrating.
You got to stay focused in on that path.
So the alternatives you have, if you're not doing these options
and especially if you're not doing real estate,
you've got to ask yourself what am I doing that's going of
going to get me to my financial freedom to help me reach my financial goals.
Because if you don't have one of these working in your favor
and it like in a marvelous way, then what are you going to do?
So you have to pick you have to pick one.
And most people, especially people that don't have a business,
they're going to end up having to rely on real estate.
And the reason for that is because you're able to leverage
and real estate is a safer, more
reliable when all things, how constant investment.
You can use other people's money.
So leverage allows you to get the return.
So if you've got $100,000 you buy a $500,000 house
you get it returns on $500,000 if you just take your $100,000 and invest
in shares, you're only getting returns on that $100,000.
And so that over time makes a very big difference and you're
compounding with with real estate, especially in New Zealand market
based on historical numbers is going to get you much bigger returns.
So you might put your money into real estate, you might work
a little bit harder, start a side business and then on
if there's any spare money you can put it into shares
combining these strategies and why are we doing this?
Why are we spending our surplus income
on investments instead of lifestyle?
It's because ultimately we want to get to financial freedom.
There's going to be a bit of sacrifice for five, ten, 15, 20 years.
But ultimately the reason we're sacrificing is so that
after that 20 years we don't have to work.
And if you don't do this sacrifice now, then you're going to have to keep working.
So it's your choice.
You can work for 20 years and stay focused.
Or you can work for 40 years and enjoy everything
marginally.
But I think getting to the financial freedom
aspect means a lot more enjoyment, a lot more fulfillment,
and you get your time and your freedom back when you have financial freedom.
So if you got any questions about how
how to reach financial freedom or why we're buying investment
property and about these options let us know in comments below.