How This Couple Are Set To Earn A $200K Passive Income and Retire at 55⎜Ep 1025⎜Property Academy

[@kensingtonmatt]

Few holes here: Currently rental income is around $125k per year (assuming new Akld properties are purchased), you want them to go interest only so they will have around $1.8m of debt at say 6% p.a. bank interest rate, so $108k p.a interest alone. They would either need to aggressively pay P&I at some stage to repay the mortgage with in 20 years or sell an asset to clear the debt and therefore decrease future income. Hopefully they have already had their family as if they dropped to one income they would likely end up in serious trouble. P&I payments on $1.8m are just shy of $3k per week or $156k p.a. (at 6% over 20 years) so clients would need to top up the mortgage by $31k plus the usual rates insurance property manager fees so say another $30k which gives a total of $1,173 per week the clients would have to put into the investments. CASHFLOW is critical. Pretty sure you should be having a disclosure at the start of your presentations too.

[@opes_partners]

Standard strategy in this model is to hold the properties over the long term, get the capital growth, then sell the properties, take the gains and invest in higher yielding properties with lower debt. The rental income then provides the passive income.

[@jonathanussher9186]

Hey Ed and Andrew, thanks for your content. Could you please delve deeper into how you calculate the passive income. For the golden goose approach are you factoring in capital growth as passive income so in a sense your assets are being whittled down? I would love to see if this sort of passive income can be achieved solely on cash flow of high yielding residential property and what sort of portfolio value and equity position is required to achieve it. Thanks

[@opes_partners]

Hey Jonathan, it’s calculated just on rental income. Standard strategy is to aim for a 4% net yield. So for $100k of passive income, need $2.5 mil of assets without any mortgage on them. Then after paying for property management, rates, insurance etc. 4% drops out the bottom, which gets you the $100k.

[@abdulzoheb7678]

Do you have to go on Interest Only? What about paying off debt over time?

[@CheshireArt_]

THANK U SO MUCH!! selling a house to buy 2 new builds 🤯🤯🤯🤯🤯🤯🤯

[@dianeharrison8577]

You guys are Amazing! Thank you for sharing your knowledge.

[@ritchiewalker6194]

Great stuff again guy's! Thanks

[@pa7400]

Hi Ed and Andrew, great content! What would be the strategy for low income & high savings. To be more specific, 40k of annual income & 1.5mil of savings, no property.

[@opes_partners]

Assuming you’re a bit older, the standard strategy would be to buy a high yield property without a mortgage (or a low mortgage). You’ll struggle to get a lot of lending from the bank because of your income. So the game plan would be to get a property that supplements your income (dual key apartment or townhouse). It wouldn’t use all your savings, so you’d retain some of them and invest in other assets that could provide income. Assuming you’re younger, you’d probably buy growth properties and use a second tier lender to get as much borrowing as possible. Would recommend you get some personalised advice on this to see what the right approach would actually be for you. Best next step is to book a complimentary portfolio planning session with our team. Here’s the link: opes partners.co.nz/property-coaching

[@andreirobertson4844]

Love the content guys, have been spamming your podcast for the last few months and looking forward to you visiting Invercargill soon - when is that happening?

[@gloriasimon8102]

😂 👌

[@modz82]

Hi team is there a way we can get access (via sub?) to the My Wealth Plan software? I’ve already had a review with the team but would like to play around with scenarios. And perhaps an extra button for Andrew’s shirt ;)

[@opes_partners]

Hey, today My Wealth Plan is just for our financial advisers. But, we are planning on making it available to the public when we launch our book later in the year.