Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Definitely! All of this happened in less than a year after *Camille Alicia Garcia* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Yeah interesting numbers Luke. Certainly someone starting today, paying 35 to 40% for the same houses, and paying 6% interest, wont be able to duplicate this portfolio! Thanks for this vid however! Terrific education for many, and you do it for free! 👍👍👍👍
Thanks for sharing Luke, we are in a similar position with property 1. I would be keen to hear your thoughts on the positive versus negatives of letting rooms individually versus renting to a single tenant/family on a lease. Nearby our place rooms are going for $300 a week and in a 4 bed house the equivalent rental return on leasing the entire hose wold be significantly less.
Yeah exactly - it's a lot more work but if you're up for it you can make more money too. That's essentially it, if you can handle the management risk, I think it's worth it
Love your work Luke what you are doing is really inspiring and I love your videos. As an 18 year old how would you suggest to get into investing in property and starting a portfolio. Thanks :)
Thanks for the info Luke! Just wanted to confirm that these figures don't include the principal repayments on the mortgage? If you included those, would your cashflow still be positive, or do you need to top up?
We don't include the principal repayments in these calculations but prefer to take a true profit and loss view. Our cashflow is currently positive including principal at the moment :)
You and your wife are such a beautiful team together. Finding a partner who has the same dreams and goals as you, and works as hard as you do to achieve them, is a near impossible feat in this day and age. Congratulations both of you, on finding one another. The property portfolio is impressive too. ;)
@@lukewiles1 do you require any special insurance for room letting? I’ve heard you can’t just use the same insurance as renting out the whole house to one tenant
can you show me how to minimise the tax bill? My gross income over 150k/ year. I am scared at making more money. I made mistakes that I bought 2 properties with cash in my names. I should hold them in family trust but now it is too late to change.😢
Sorry why is it a bad thing to have properties under your name? My gross income is similar. I own my place, and looking to buy an investment property under my name. Now I'm concerned after reading your comment
Common strategy is to keep buying in your name for a while, not for tax reasons but for cashflow reasons to get the borrowing capacity up and spread risk. Trust or company for asset protection when you have assets and to spread land tax thresholds across entities.
Switchboard replacement for $800 - Sounds like nothing but replacing the RCBO's in the board. Not going to get much of anything from a Sparky for $800. I would love to know how you pay zero in land tax when your have three properties. Understand one is in NSW but how can the other two unimproved value be less then $600k? Do you hold one is trust or some other creative 'accountanting' ? I get fleeced by the Qld Gov in Landtax due to the property being in a Family trust. Looking at ~$100k to disolve the trust. $100k in taxes to change a name in a Government database - Total scam.
You have a father to teach you how to flip houses and help you out with the process. Thats the big secret LOL. Not to mention if he's already been doing that hes probs incredibly wealthy.
This is the issue. Second video targeted, thought I would give benefit of the doubt. Garbage as per expected. You are running scenarios at locked in 2% interest rate, and talking net rental income. All garbage. The title should be how we make less than someone on Centrelink. 3k a year, and you’re a BA sharing this content? Come on man. This is the problem, then you spread this garbage to others, they also buy crappy properties, and everyone wonders why they are stuck in a cash sinking property. Don’t buy these garbage properties, focus on maximising income. If you don’t make $300k+ (ideally $500k+) household income, you aren’t going to get A grade properties. It’s just what it is. I have some properties in Brisbane, such as Acacia ridge, mermaid waters, chevron island, and they are garbage compared to any of my Sydney and Melbourne purchases. Enough RUclips for today. Like Sasha Hopkins and B invested all over again. Fml.
I like his enthusiasm. But second video I’ve watched and both have issues with the way he does his numbers. Not knowing what his return actually is in the first one plus what you’ve highlighted. He’s right about focussing on growth first, then cashflow. Adding value is a good way to build equity and better cashflow. Most of his viewers and probably clients are beginners I reckon.
Why would you bother with this? You can make 56k/quarter from doing property work as a solo operator with one vehicle and no employees doing about 5k in running costs. You don't have to go though any third parties or even own a PC and eventually you get to the stage where you sit in bed and clients will just keep calling and messaging you until you can't reply any more. How many clients have you collected from doing this who you can count on?
Bother with what? I don't follow in what context your referring too ? $56k/ Qtr doing "Property Work" What are you referring to here as well? "solo operator with one vehicle and no employees doing about 5k in running costs." You'd have $5k just in fuel over the course of a year but okay do go on.
Not every comment has to be possitive especially if advice is given which creates less of a possitive cash flow. If you offer a service and are registered for business activities in Australia you can start making money after advertising your services and acquiring tools. Have you watched the channel 'upflip' and others? It's been proven that a service based business is a better start then going into real estate. $200k a year is possible without employees in Aus especially in Melbourne and Sydney. It's a better experience getting paid by wealthy property owners then tents who struggle to pay the rent and have to deal with other trades and agents when trying to flip a property. Just looking at the lists shown in the video there were loads more expences then paying for fuel, tool maintenance, clothing and insurance per quarter running a service.
Because this is money they make ON THE SIDE, doing nothing, on TOP OF their regular jobs!! Also, these properties will keep INCREASING in value over time, making them more money. And, with all this rental income coming in, they are eligible to borrow more money… to buy more properties… and the cycle (along with their bank account) continues to grow and grow.
@@traceycrawford9938 Eventually you want to invest your money into real estate. The only two ways you can make money off property is appreciation and rents going up. That takes too much time compared to cash flow from a small business. Eg 100k, 200k, 300k, 400k, 500k and up. You're also eligible to borrow more as your income goes up. How much time is spent fliping and doing up properties compared to what you could be doing serving others? Your client base also appreciates. The tools you use to repair and modify properties could be used to make income in a service business. What type of regualr jobs are we talking about? How much does it cost to run a house hold in Australia? Is there really any left to put into crumberling properties? Good luck to you if you want to go forward with this venture on a couple salaries. I'd rather have the cash flow in general/in life and invest into a small business with revenue even not until to a $mil or higher before getting into property. If interests rates jump a fair bit higher because of world events one will be in trouble without the cash flow coming in from regluar clients. Fliping and doing up properties is less structured and more diabolical then running a business offering one or a few services. Small jobs bring in the money. Clients after client. Referral after referal. In and out.
![SIX DEADLY MISTAKES [Avoid] - IT Consultant Loses SIX Property Portfolio! | Australian Investing](/img/1.gif)
You don't see this level of transparency from other buyers agents. Thank you 👏
Thank you!
Ohhh gotcha. Thanks for clarifying.
Love the honesty and transperancy luke. So good to see a snap shot of your expenses to start future plannning my assets and set some targets
Glad the numbers are useful for your own journey!
So glad I found your channel 2 days ago. Great to see a local creating such great content that’s interesting and informative.
@@indigofox72 thanks! Appreciate the feedback 😊 🙏
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@@maryHenokNft Do you mind sharing info on the adviser who assisted you?
Definitely! All of this happened in less than a year after *Camille Alicia Garcia* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Yeah interesting numbers Luke.
Certainly someone starting today, paying 35 to 40% for the same houses, and paying 6% interest, wont be able to duplicate this portfolio!
Thanks for this vid however!
Terrific education for many, and you do it for free!
👍👍👍👍
its not free, payment comes exponentially through youtube the more viewers that watch. nothing is free in this world :)
This is high intensity content its brilliant, using technology to reduce the stress by acuracy of numbers is scary to most.
Thanks for sharing Luke, we are in a similar position with property 1. I would be keen to hear your thoughts on the positive versus negatives of letting rooms individually versus renting to a single tenant/family on a lease. Nearby our place rooms are going for $300 a week and in a 4 bed house the equivalent rental return on leasing the entire hose wold be significantly less.
Management overhead - You'll make more per room but it'll require more effort or more $$$ on your part to execute,
Yeah exactly - it's a lot more work but if you're up for it you can make more money too. That's essentially it, if you can handle the management risk, I think it's worth it
Love your work Luke what you are doing is really inspiring and I love your videos. As an 18 year old how would you suggest to get into investing in property and starting a portfolio. Thanks :)
Amazing, flowing presentation!
Thanks for the info Luke! Just wanted to confirm that these figures don't include the principal repayments on the mortgage? If you included those, would your cashflow still be positive, or do you need to top up?
We don't include the principal repayments in these calculations but prefer to take a true profit and loss view. Our cashflow is currently positive including principal at the moment :)
You and your wife are such a beautiful team together. Finding a partner who has the same dreams and goals as you, and works as hard as you do to achieve them, is a near impossible feat in this day and age. Congratulations both of you, on finding one another. The property portfolio is impressive too. ;)
Makes life so much easier being on the same page and building the portfolio together. It's not her money and my money. It's our money 💰 ❤️
Thanks for these vids!
Awesome step by step presentation!
Thanks!
Hi Luke. New subscriber here! Do you have a video for those starting in investing in properties?
is the baby qlder the house you and em were thinking of selling to do your home reno? or are you going to keep it now?
that's the one we'll potentially be selling ! if we feel like its' the right thing to do at the time
Do you hold your assets under your individual names or have you setup a structure?
We use both personal names and trust structures
How do you get 1715 per week on first property. Do you rent each room out?
Yes room letting for house 1
@@lukewiles1 do you require any special insurance for room letting? I’ve heard you can’t just use the same insurance as renting out the whole house to one tenant
@@bhattmanybwho told you that?
@@yourenotwrong3511 don’t exactly remember - think I came across it in a property forum.
can you show me how to minimise the tax bill? My gross income over 150k/ year. I am scared at making more money. I made mistakes that I bought 2 properties with cash in my names. I should hold them in family trust but now it is too late to change.😢
Sorry why is it a bad thing to have properties under your name? My gross income is similar. I own my place, and looking to buy an investment property under my name. Now I'm concerned after reading your comment
Common strategy is to keep buying in your name for a while, not for tax reasons but for cashflow reasons to get the borrowing capacity up and spread risk. Trust or company for asset protection when you have assets and to spread land tax thresholds across entities.
How are you returning so much for property 1 still? Are you renting each room still?
Yes room letting
@@lukewiles1 wow. good to know.
Are you familiar with using super to buy property?
Is this your current portfolio income spreadsheet or just a template for the video? Would love a copy!
So you are only paying down for the interest? How about the original loan value
does the interest payments include principal payments.
I dont understand why the mortgages for these properties isn't in the outgoing expenses?
That's what the interest bill is ?
Switchboard replacement for $800 - Sounds like nothing but replacing the RCBO's in the board. Not going to get much of anything from a Sparky for $800.
I would love to know how you pay zero in land tax when your have three properties.
Understand one is in NSW but how can the other two unimproved value be less then $600k?
Do you hold one is trust or some other creative 'accountanting' ?
I get fleeced by the Qld Gov in Landtax due to the property being in a Family trust. Looking at ~$100k to disolve the trust.
$100k in taxes to change a name in a Government database - Total scam.
Like watching your channel Luke. Would like to at some point come and have a chat with you.
$215k/yr but how much are you paying to service all the loans on these places? In honesty, i didnt watch the whole thing
Come on man at least scrub through the video 😆
good rent return
You have a father to teach you how to flip houses and help you out with the process. Thats the big secret LOL. Not to mention if he's already been doing that hes probs incredibly wealthy.
Very lucky to have my Dad. But he's not a renovator, I mainly teach him on the projects haha
Would rather a newer propert why would you lose a weekly income and try and do the work yourself.. i know subject to what you make a week
We renovated while still working our day jobs...
@@lukewiles1 you're a strong man.. i cant work long hours then renovate i need 8 hours sleep 😴
This is the issue. Second video targeted, thought I would give benefit of the doubt.
Garbage as per expected. You are running scenarios at locked in 2% interest rate, and talking net rental income. All garbage. The title should be how we make less than someone on Centrelink. 3k a year, and you’re a BA sharing this content? Come on man. This is the problem, then you spread this garbage to others, they also buy crappy properties, and everyone wonders why they are stuck in a cash sinking property.
Don’t buy these garbage properties, focus on maximising income. If you don’t make $300k+ (ideally $500k+) household income, you aren’t going to get A grade properties. It’s just what it is. I have some properties in Brisbane, such as Acacia ridge, mermaid waters, chevron island, and they are garbage compared to any of my Sydney and Melbourne purchases.
Enough RUclips for today. Like Sasha Hopkins and B invested all over again. Fml.
I like his enthusiasm. But second video I’ve watched and both have issues with the way he does his numbers. Not knowing what his return actually is in the first one plus what you’ve highlighted. He’s right about focussing on growth first, then cashflow. Adding value is a good way to build equity and better cashflow. Most of his viewers and probably clients are beginners I reckon.
215k after mortgage, bills and tax ?
Did you watch the video?
@@lukewiles1 I didn't watch the full video. Watching now.
Unbelievable.
Why would you bother with this? You can make 56k/quarter from doing property work as a solo operator with one vehicle and no employees doing about 5k in running costs. You don't have to go though any third parties or even own a PC and eventually you get to the stage where you sit in bed and clients will just keep calling and messaging you until you can't reply any more. How many clients have you collected from doing this who you can count on?
Bother with what? I don't follow in what context your referring too ?
$56k/ Qtr doing "Property Work" What are you referring to here as well?
"solo operator with one vehicle and no employees doing about 5k in running costs." You'd have $5k just in fuel over the course of a year but okay do go on.
Would you like to explain what you are on about mate or are you just leaving a negative comment..
Not every comment has to be possitive especially if advice is given which creates less of a possitive cash flow. If you offer a service and are registered for business activities in Australia you can start making money after advertising your services and acquiring tools. Have you watched the channel 'upflip' and others? It's been proven that a service based business is a better start then going into real estate. $200k a year is possible without employees in Aus especially in Melbourne and Sydney. It's a better experience getting paid by wealthy property owners then tents who struggle to pay the rent and have to deal with other trades and agents when trying to flip a property. Just looking at the lists shown in the video there were loads more expences then paying for fuel, tool maintenance, clothing and insurance per quarter running a service.
Because this is money they make ON THE SIDE, doing nothing, on TOP OF their regular jobs!! Also, these properties will keep INCREASING in value over time, making them more money. And, with all this rental income coming in, they are eligible to borrow more money… to buy more properties… and the cycle (along with their bank account) continues to grow and grow.
@@traceycrawford9938 Eventually you want to invest your money into real estate. The only two ways you can make money off property is appreciation and rents going up. That takes too much time compared to cash flow from a small business. Eg 100k, 200k, 300k, 400k, 500k and up. You're also eligible to borrow more as your income goes up. How much time is spent fliping and doing up properties compared to what you could be doing serving others? Your client base also appreciates. The tools you use to repair and modify properties could be used to make income in a service business. What type of regualr jobs are we talking about? How much does it cost to run a house hold in Australia? Is there really any left to put into crumberling properties? Good luck to you if you want to go forward with this venture on a couple salaries. I'd rather have the cash flow in general/in life and invest into a small business with revenue even not until to a $mil or higher before getting into property. If interests rates jump a fair bit higher because of world events one will be in trouble without the cash flow coming in from regluar clients. Fliping and doing up properties is less structured and more diabolical then running a business offering one or a few services. Small jobs bring in the money. Clients after client. Referral after referal. In and out.