RG 133 – The Freedom Formula: The 6P’s To Creating the RIGHT Investing Mindset with Bushy Martin
- Bushy is an Australian real estate investor
- Bushy is a publish author
- Bushy is a qualified architect
Nuts and Bolts
Bushy is an Australian leading real estate investment expert. He runs the company KH Group and helps other Aussies invest in real estate or set up for retirement. He is the author of the Freedom Formula – Live MoreWork Less. Bushy was a sick child with asthma and made his first dollar selling stickers in a sticker club. He spent a lot of time in bed and so did a lot of drawing and wanted to become an architect. After he became an architect he worked very hard and his marriage failed as a result, at the same time his father became ill and he realized he had to make his money work for him rather than the other way around. Bushy read Kiyosake and realized he had to get into passive income so that he could enjoy life. He and his now-wife sat down to break down the future; where they wanted to be and how to get there. They worked out how much it would cost and then went to invest in properties that would bring in that money. They calculated this ‘nest egg’ number by calculating how much they would need to live off and then breaking it down by number of properties.
Bushy recommends that to achieve this the first thing you need is a good team with an accountant, property manager, contractor and lawyer. When building the nest-egg you need a growth model but after the growth you can convert into a cash flow model by investing in different types of properties. in the Australian property market the cycle is about 15 years and location is the most important factor, more important than the property itself. The right location can yield between 8-15% growth per year. The trick is to follow the jobs and look for strong income profiles, for example follow the professionals. Only look at the future, don’t bother with the past just look for infrastructure growth like a new school or hospital. Each location in Australia is on it’s own cycle; they aren’t all aligned. Bushy doesn’t recommend Sydney or Melbourne because they’re just gone through their growth cycle, he’s focused on the suburbs around Brisbane and Adelaide.
When first talking to an investor you need to work out their affordable spend, their purchase price power, before even looking at the property. They look for the highest price location within their affordable spend and this will create the ideal result. The less you spend the further you’ll be from a CBD. Use as little of your own money as possible to buy as large an asset as possible, Do this as quickly and affordably as you can and then let time do the rest. If you own 2 or more properties in Australia you’re in the top 2%. Over 50% of first time investors sell a property in the first 5 years because they’re only focused on the property and not the process.
The 6 P’s of Mindset
- Purpose and belief – Why are you doing this?
- Perspective – Get clear on your ideal lifestyle and then create a roadmap
- Plan – Put shape in the roadmap
- Proactive – Avoid procrastination
- Patience and Persistence