OptionB method-Unlearn to ‘learn to learn’ “amazing and from the heart”

World class Mortgage Buster – An exciting NEW 888 Day Property business wealth System.

Rich debt poor poor debt

“Now that I have unlearnt to ‘learn to learn’ what they taught me that that I needed at school, with what I want to learn- about the my heart and its world, money, health and relationships-I am really passionate about teaching others how to unlearn to learn to learn…Chris Wakeford

“If You Fail to Plan, You Plan to Fail which is why Im stuck now I have been to school”                                                                                                         Chris Wakeford

One of the most important aspects of creating and Building and Structuring a Property business Portfolio is to ‘start with the end in mind’. That is, you must have an exact strategy or ‘Pathfinder’ that is concise and all encompassing before you start building you property business.

Many investors get into a lot of trouble because they simply never clearly articulated and mapped out a concise strategy to begin with. These investors end up buying a number of properties, and eventually max-out due to them reaching their maximum borrowing capacity – DSR (Debt Serviceability Ratio), Loan To Value Ratios (LVR), or along the way undertake the wrong structures such as cross-securitizing their entire property portfolio, or purchasing the wrong type of properties. Mistakes that you will make along the way, when building your investment property portfolio, can amount to tens, if not, hundreds, of thousands of dollars in expenses or even worse still, loss of opportunity.

So, my advice to you is to create a ‘Pathfinder’ blue-print, before you do anything else. That is, you must clearly identify your outcome and ultimate goal for building a large residential investment property portfolio. At the 4 Day Rich Debt Poor debt Property business Seminar, we will help you to identify and develop your plan of attack, which will form the blue-print for your property acquisition, structures, and time-frames.

During your initial and (in some cases) subsequent one-on-one consultations with your personal Property Portfolio Manager, you will uncover and create ‘Master-Plan’ which will help to guide you through the process of property acquisition, and will help you to stay on track in achieving the ‘ultimate-goal’ of attaining financial independence.

In the meanwhile, here is a summarised version of a the main Strategy that we teach at the 4 Day Rich debt poor debt  Property business Seminar, which involves securing 5-10 Investment Properties over 10 Years.


  1. The Acquisition and building stage;
  2. The Consolidation and refining stage,
  3. And the Harvesting stage;

These stages will differ depending on your personal ‘Risk Profile’, which is largely based on your relationship with Rich Debt and Poor Debt. You see, many property investors do not understand that they are actually not in the ‘Property Game’, they are in-fact in the ‘Debt Game’, and it is via Debt Acquisition that one grows one’s property portfolio. In-fact , I often spend a considerable amount of time with clients explaining the ‘mindset of an investor’, in a effort to develop their psychology to the extent that they begin to appreciate and distinguish the differences between ‘Good Debt’ and ‘Bad Debt’, and associated tax implications.

Having said that, an individual’s ‘Risk Profile’ will be largely determined by the amount of Debt they are comfortable holding, as well as their approach, be it passive or aggressive, in building a large property portfolio. For example, ‘an investor with a conservative risk profile, might save the initial 20% deposit which will contribute towards the purchase of their first investment property, and subsequently take out loans with a maximum of 80% Loan To Value Ratio (LVR). This investor would then wait some time until there was enough equity in their property which would enable them to re-finance the property and buy more property, each time contributing a 20 per cent deposit, and in some instances, contributing a large enough deposit which would make their investment properties cash-flow neutral.

On the other hand, an investor with a more aggressive risk profile would be more comfortable seeking out loans with the maximum Loan to Value Ratio (LVR), going as high as 97 per cent LVR plus capitalising the Lenders Mortgage Insurance (LMI) of 3 per cent on the purchase. These investors with a high risk profile, also would have a tendency to capitalise the interest on the loans, by taking advantage of loans such as the ‘Cash-Flow Manager’ Loan offered by ING; such products may effectively turn a negatively geared property into cash-flow neutral or even positive status by capitalising the shortfall on the difference between the loan and expenses incurred on the property, and the lease payments by the tenant.

An investor with a ‘Balanced Risk Profile’ would take on strategies and approaches somewhere between the previously mentioned Conservative and Aggressive risk profiles. The main difference between the three being their individual relationship and understanding of Debt and Structure.

The attributes of the three profiles would be further reflected in the type of properties that the three types of investors would select. The more conservative choosing a typical 4 bedroom house and land type of properties located around the ‘Mortgage Belts’ of the major capital cities in Australia.

While the validity of these types of properties is unquestionable over the long-term, meaning that these types of properties tend to double every 10 years, over the short-term however, especially during times of economic downturn (such as the one we are experiencing now, with potentially 8 or 9 per cent unemployment rates, coupled with low economic growth, and an increasing current account deficit), these properties tend to prove less attractive and tend to depict low capital growth over the short-to-medium term.

Having said that, let’s have a look at a simple 10 Year   property business  wealth System, which involves a simple BUY AND HOLD principle of blue-chip Residential Investment Properties located in the Major Capital Cities around Australia or oversea’s

Before we look at specific properties, let’s look at the performance of the Australian Property market over the last 100 years or so, in order to establish a ‘pattern of behaviour’.



As can be observed from the above 2 tables, Housing prices in Australia, in the major capital cities, have doubled every 8 to 10 years since 1966. The question then arises, ‘will this continue to happen in the future?’ Below are two diagrams depicting the Population Increases and Growth around the major capital cities in Australia in the near future.



Thus, it can be seen that a ‘Pattern of Behaviour’ can be identified that has been occurring in the Australian Housing Market since 1966. The ‘Pattern of Behaviour’ is that property tends to double every 8 to 10 years, and there are no signs that this is likely to change in the near future. In fact, due to the population growth (and this is likely to accelerate), it means that this can result in making our 10 year plan an 8 year, or even 6 year plan.


In the above simplified illustration, we are allowing for an 8 per cent of capital growth per year, compounded, which means that the property that you secure in year 1 for $450,000.00 would double every 9 years, thus in year ten, the same property would cost just under $900,000.00.

The investment property purchased in year 1, 10 years later has doubled to $900,000.00, and this gives the investor a Line of Credit of $270,000.00 in year 11.

i.e. $900,000.00 refinanced at 80 per cent LVR equates to $720,000.00 subtracting the original debt of $450,000.00 leaves you with a Line of Credit (LOC) or $270,000.00.

Now, you don’t have to spend your entire Line of Credit every year that you unlock it, you can spend half of your line of credit; that is, you could spend half of $270,000.00 or $135,000.00 and use the remaining $135,000.00 to capitalise the interest on the $135,000.00 for 10 years.

That means that in Year 10, you can retire of an income of $135,000.00 per year, TAX FREE, and keep capitalising the interest on your LOC.

As you can see, from the above example, the text box does not take into consideration the effects of capital growth compounding or inflation, simply the available (LOC) line of Credit which you will have available in each property. That is, the presumption is made (for illustrative purposes and ease of clarification) that a property is purchased in Year 1 for $450,000, and this process will be similarly repeated in Year 10. However, consider that in real life, the property purchased in the first year would have over doubled by the tenth year, but this is not depicted.

Remember that your first property purchased in Year 1 for $450,000.00 will be worth circu $900,000.00 in Year 11, and $1,800,000.00 in Year 21, thus doubling every 10 years.

At the same time, your available (LOC) Line of Credit in your property will be $0.00 in Year 1 when you first purchase your property, $270,000.00 in Year 11, and $720,000.00 in Year 21. And remember, a Line of Credit is simply a pre-approved loan against the equity in your investment property. You can spend it on Poor Debt, i.e. consumables, or Rich Debt, i.e. shares, investment or more property; the best part of this is that you get to decide!


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