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Episode 004 | Four Pillars of Mastery – Borrowing Power

This may be one of the most important factors when investing in property… 

Continuing with our “ABCD” Property Investment Formula which all property investors should master, we’re advancing to B for Borrowing Power!! 

Folks, now that you know how much surplus you have at the end of each month (thanks to the previous episode on Cash Flow Management), the next step is knowing YOUR borrowing power! 

Did you know that having higher borrowing power can greatly increase your accumulated wealth?  

But it’s not always as simple as going to your bank or mortgage broker to set up a loan…

 In fact, many unseen factors can create unwanted “glass ceilings”.  

We’ll cover how to recognise the signs of Borrowing Power and more importantly HOW to increase yours… 

PLUS, we’re unpacking INCOME: how does it affect your suburb’s desirability and value growth, and when did income and property value even become linked?! 

👉 Tune in for the gold!  

 

Free Stuff Mentioned:  

  • Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which shows you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away!

    • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
    • This field is for validation purposes and should be left unchanged.

 

Here’s some of the gold we cover…

  • 1:55 – What is Borrowing power (and why is it so important?!)  
  • 3:34 – Don’t make this couple’s mistake! 
  • 4:55 – The relationship between borrowing power and prices  
  • 7:00 – Who actually sets the market price?  
  • 7:38 – The signs of Borrowing Power!  
  • 8:00 – How do occupants affect their suburb’s value?  
  • 10:07 – The rise of The Great Australian Dream!  
  • 11:11 – The 1970s saw THIS positive change 
  • 11:53 – The 1990s, however, were… 
  • 12:40 – Why income is SO important! 
  • 14:34 – Leverage decides ____ class  
  • 15:54 – What is Cash-on-Cash returns?  
  • 16:50 – Cash Flow Management and SENSIBLE Gearing!  
  • 18:00 – How to increase YOUR borrowing power   

 

Episode 003 | Four Pillars of Mastery – Cash Flow Management

Do you know the ABCD’s of property investing??  

 Yep, we’ve spent years defining this Property Investment Formula (which we like to call the ABCDs) that every property investor should master!!  

That’s right, there’s a science behind investing; property investment is not just a transaction.  

So get excited folks because over the next four episodes we’ll be deep-diving into the four pillars which make up this Property Investment Formula:  

A – Asset Selection (what property to buy) 

B – Borrowing Power (how to set up your loan strategy and structure) 

C – Cashflow Management (how to trap more surplus) 

D – Defence (how to protect yourself and your portfolio) 

BUT REMEMBER, while this acronym makes it easy to remember each “ABCD” Pillar, this is NOT the order it should be implemented in. 

Most people tend to start with “A” – the property itself… aka Asset Selection – this is NOT where you should start!  

Instead, folks, we’ll be starting with the foundation pillar that is also the hardest to master – Cash Flow Management!  

‘And why is this the hardest?’, you ask… 

Well, unlike the other pillars, success is totally dependent on YOU! 🤯

It requires one’s own planning, observation, and discipline: all things a professional advisor can’t provide!

It’s also the cornerstone to building a successful property portfolio!  

As the famous quote goes, “change begins with you” and it’s no different for your finances.

Listen in and learn how to manage your cash flow once and for all!!! 

 

Free Stuff Mentioned:  

  • Check out the Cash Flow Management – Flow of Money chart below: 

Ep 003 - Four Pillars of Mastery - Cash Flow Management - The Property Couch chart 2

  • Just starting your property investing journey? Check out our FREE Binge Guide to the Foundations of Property, Finance and Money Management, which show you which episodes you need to understand the basics! Or fill in the form below and we’ll email it to you right away!

    • Are you also interested to have a better understanding of your cashflow position via our FREE Money SMARTS Platform?
    • This field is for validation purposes and should be left unchanged.
  • Keen to Get Started with Money SMARTS? Since we’ve recorded this episode, we’ve published a best-seller book on Money Management called Make Money Simple Again and launched an online platform to help everyday Australians manage their money better. We’ve sold over 10,000 copies of the book and the platform has more than 13,000 active users! If you’re interested to check it out, fill in the form below and create your account on our Money SMARTS Platform now!

    Already have an account? Log in here.

     

Here’s some of the gold we cover… 

  • 0:28 – We’ve been on a tour… (No, we’re not in a band 😉  
  • 1:52 – We see THIS mistake too much  
  • 3:20 – So, what are the four pillars?  
  • 4:12 – Why is Cash Flow Management so difficult?!   
  • 5:45 – What differentiates good vs great Cash Flow Management?  
  • 7:10 – “Running a household is like running a business”  
  • 8:30 – In the old days, we had… 
  • 9:38 – WHY Cash Flow Management is the cornerstone of a successful investor!  
  • 10:40 – Where MOST people get it wrong is with ____ spending 
  • 11:19 – “Our Flow of Money” chart explained!  
  • 11:58 – What you can do with your surplus!  
  • 12:40 – Why budgets are hard   
  • 14:31 – Thinking of touching your Super early? Listen to this!   
  • 15:59 – The problem with an interest capitalisation strategy  
  • 16:55 –How Ben navigated a life change with success  
  • 18:25 – Key takeaways!!  

 

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