Another great episode by Kevin Young on topic “Turn your property into lifestyle”. If you want to ask your question you can submit it in 3 different ways:
1. Twitter by using Tweet: #askKevinYoung
2. Write him on Facebook or,
3. Fill out the form on Kevin Youngs official Website.
Now have a look to the Ask Kevin Young Episode 3:
Good day. I’m Kevin Young. I’m Australia’s most successful property investor, but I started out being poor, and I’m constantly being asked, “How do you do it? How do you get there?” You ask me, I’ll give you the solutions. Between us, we’ll make you wealthy.
Hi. You’re now back for episode three of #askkevinyoung.
Andrew asks, “How do I turn property into lifestyle?”
It’s very easy. The first time I came across this was when I realized I was buying a new car for $5,000, a lot of money back then. The repayments were $500 a year or $10 a week. I simply spread the ten dollars across my investment properties which led to just cents per week on the rent coming up, and I tell them, “You’re paying for my car.” Every month that the repayments came due, the money was there from my tenants. It’s a simple story, but it applies everywhere and you’re going to see an lovely car on mine that has been financed exactly the same way. I have lovely tenants, nearly 200 of them, paying for my car. Come for a drive.
Welcome to the car that’s cost me nothing. This is the reason I love property, convert it into something that you do love. In school, I was the poorest kid at school, I couldn’t even afford a school sports blazer, so it’s lovely to be able to go around and get the finer things in life once you know how to do it and the easiest way is, of course, sit there and wait for capital growth, it doesn’t happen overnight, borrow that growth, buy the things you need and then increase rents and pay them off. I say never buy your own home unless you can pay 50% of it in cash and have a 50% mortgage, because buying your own home is a noose around your neck, you’ve got to pay with after-tax dollars which means you’ll earn a lot to pay it off.
There’s my place here. This area was opened up in about 1990 and these blocks here were a $100,000. Mine is across the other side of the bay and I’ve got a whole house in this same situation, but it was an older house for $99,000. Well, I thought these people were mad, paying a $100,000. Now I’ve just paid 1.6 million dollars for land, here, so who was mad? I should have bought a lot more at $100,000. That’s why I like property, it never disappears like shares, always keeps coming up because peoples capacity to pay keeps going up. The average household in 20 years time, will be only $7,000 a week, which means their capacity to pay rent is a third of that, so they can pay over $2,000 a week, rent, for the properties that you buy now for $500,000. That’s a $100,000 return you’re going to get back on $500,000 property each and every year. That’s why I love property.
Some people jump into property, get demoralized after 4 or 5 years and sell it at a loss, they’re losers. It’s a long-term investment, you’re going to be in for the long-haul. Some people will get and buy a property, again, it just works right for them, the law of supply and demand’s right, and it could double in 3 or 4 years, and we’ve picked a number of areas that have done that. But, traditionally, it takes, say, 10 to 12 years to double and it’s sleepy period in that 10 to 12 years as well. It may look like it’s not going to double, but, of course, it will.
Like I was just saying, the benefits of property and cars and how to get the best houses, but you have to start somewhere, and where I started was poor, I had to work three jobs to get the money as a deposit to get started. I bought and sold 644 times, and I made every mistake in the book. That’s the beauty of your question’s, I can help you with the right answers that saves you stubbing your toes and becoming part of these 80% who buy properties and only ever buy one because it’s a nightmare. Let me help you avoid a nightmare, give me your questions and I’ll see you next week.