5 Year BOOM phase 2#

Summary

The transcript reveals a strategy used by a small percentage of Australian investors to achieve significant property growth. It emphasizes the importance of understanding the five-year boom phase in property markets, where consistent double-digit growth occurs, allowing investors to release equity and purchase additional properties. The speaker discusses the dangers of timing the market incorrectly, which can lead to significant financial losses, and offers insights on how to identify areas entering their growth phase. The transcript positions this knowledge as a key to building wealth faster than the average investor.

Takeaways

• 🏡 A small percentage (0.4%) of Australian investors are capitalizing on property investments with consistent double-digit growth.
• 📈 These investors leverage equity from one property to purchase another, aiming to build wealth 10 times faster than the average investor.
• 📊 Understanding the 'five-year boom phase' is crucial for identifying areas that are starting their growth phase at a particular time.
• 🚀 During the boom phase, there is significant double-digit growth, but it's followed by a slowdown that can lead to financial losses if timed incorrectly.
• 📍 Each market and suburb has unique growth cycles, and timing entry and exit correctly is essential for maximizing capital growth.
• 🌐 The speaker's advisory uses a 72-step process to analyze market trends and future projections to inform investment decisions.
• 🔄 The goal is to ride the wave of capital growth in one market and then move to another that is starting its growth phase.
• 🏞️ Case studies like Frankston and Gimpy demonstrate the importance of timing the market correctly to avoid stagnation or decline in property value.
• 📉 Missing the optimal investment window, such as entering the Hobart market in 2016, can result in significant missed growth opportunities.
• 💡 The speaker emphasizes the importance of informed decision-making over guessing or following the news when investing in property.

Q & A

What percentage of Australian investors are capitalizing on consistent property growth?

0.4% of Australian investors are capitalizing on consistent property growth by purchasing multiple properties within a short period of time.

What is the significance of the 'five-year boom phase' in property investment?

The 'five-year boom phase' refers to a period of consistent, double-digit growth in property value that occurs in specific areas. It is significant because it allows investors to capitalize on this growth, release equity, and use it to purchase additional properties.

How often does the 20-year growth cycle occur in a particular Local Government Area (LGA)?

The 20-year growth cycle, which consists of two boom phases, occurs every 15 to 20 years in a particular LGA.

What happens after the five-year boom phase in a property market?

After the five-year boom phase, there is typically a slowdown in the property market. This slowdown can involve the market trending sideways or downwards, which can be detrimental to investors who enter the market during this period.

Why is it important to time the market correctly in property investment?

Timing the market correctly is crucial because it allows investors to ride the wave of capital growth and maximize their returns. Entering the market at the right time ensures that investors can release equity and use it to invest in other markets that are starting their growth phase.

What is the impact of entering the market during the slowdown phase after the boom period?

Entering the market during the slowdown phase can cost investors hundreds of thousands of dollars as they may not see the capital growth needed to release equity and reinvest in other properties or personal goods.

How can investors identify areas that are starting their growth phase?

Investors can identify areas starting their growth phase through in-depth research, historical trends, and analysis of government policies and infrastructure projects. Tools like the 72-step process mentioned in the script can help investors make informed decisions.

What was the observed capital growth trend in the Frankston region from 2013 to 2017?

The Frankston region experienced significant capital growth from 2013 to 2017, with some individual suburbs in the area seeing over 10% capital growth.

What happened to the property market in Gimpy, north of Brisbane, from 2012 to 2019?

Gimpy experienced a trendless period from 2012 to 2019, with no significant growth. However, it began a boom phase, showing a massive spur in growth due to government policies and infrastructure projects.

What was the capital growth situation in Hobart from 2012 to 2018?

Hobart saw consistent double-digit growth from 2012 to 2017, with some suburbs experiencing growth of up to 155%. However, from 2018 to 2020, the market did not see any significant growth.

How can investors avoid making uninformed decisions in property markets?

Investors can avoid uninformed decisions by conducting thorough research, understanding market cycles, and using tools and processes like the 72-step process to make informed decisions based on historical trends and current market influences.

Outlines

00:00

🏡 Insider Strategies for Rapid Property Wealth Accumulation

This paragraph introduces the concept of leveraging little-known investment strategies used by a small percentage of Australian investors to rapidly accumulate wealth through property investment. The speaker aims to reveal these strategies, which include understanding market timing and capitalizing on a 'five-year boom phase' to achieve consistent double-digit growth. The importance of not entering the market during a slowdown is emphasized, as it can lead to significant financial losses. The speaker promises to provide insights not commonly found in mainstream media or books, and to explain how to identify and time the market correctly for optimal capital growth and equity release.

05:00

📈 Case Studies on Market Timing and Property Growth

The second paragraph delves into specific case studies of different markets and their growth phases, highlighting the importance of timing when investing in property. It discusses how certain areas experience a boom phase every 15 to 20 years, with two such phases occurring within a 20-year period. The speaker uses the example of Frankston, a suburb of Melbourne, to illustrate the concept of capital growth and the detrimental effects of entering the market too late. The paragraph also touches on the impact of government policies and infrastructure projects on market growth, using Gimpy and Hobart as examples. The speaker stresses the need for informed decision-making and offers further guidance on how to research and understand property markets to capture growth effectively.

Keywords

💡Australian investors

Refers to individuals or entities from Australia who invest in various assets, with a focus in this context on property investment. The video discusses how a small percentage of these investors are capitalizing on property purchases, achieving consistent double-digit growth annually. This highlights the wealth-building strategies of top Australian investors and emphasizes the importance of understanding market timing for successful property investment.

💡Consistent growth

Consistent growth refers to a steady and continuous increase in value over time. In the context of the video, it specifically relates to the growth of property value, which is a key factor for investors looking to build wealth. Achieving consistent growth is crucial for investors to release equity and reinvest in further properties.

💡Equity release

Equity release is the process of accessing the built-up equity in a property, which is the difference between the property's market value and the outstanding loan on it. Investors use this strategy to obtain funds that can be used to purchase additional properties or for personal use. The video suggests that understanding when to release equity is critical for leveraging investments effectively.

💡Market timing

Market timing involves making investment decisions based on predictions about where a market is in its growth cycle. In property investment, this means identifying when a market is starting its growth phase to maximize capital gains. The video underscores the significance of market timing for successful property investment and avoiding losses during market slowdowns.

💡Five-year boom phase

The five-year boom phase is a concept used to describe a specific period of time, typically five years, during which a property market experiences consistent growth. This phase is characterized by double-digit growth rates, making it an ideal time for investors to enter the market and benefit from capital gains. The video emphasizes that understanding and capitalizing on these boom phases is key to successful property investment.

💡Local Government Area (LGA)

A Local Government Area (LGA) refers to a region under the administration of a local government in Australia. In the context of the video, LGAs are used to analyze property markets and identify growth phases. Each LGA can have its own unique growth cycle, independent of surrounding areas, which is why investors need to understand the specific dynamics of each LGA they are interested in.

💡Capital growth

Capital growth refers to the increase in the value of an asset over time. In property investment, it is the appreciation of the property's value which can be realized when the property is sold or refinanced. The video emphasizes that the goal of property investment is to ride the wave of capital growth to maximize returns and that timing the market correctly is crucial for achieving this.

💡Infrastructure projects

Infrastructure projects are large-scale public works and construction projects that are designed to improve or create new infrastructure, such as roads, bridges, or public facilities. In the context of the video, infrastructure projects are highlighted as a significant factor that can trigger a boom phase in a property market, leading to capital growth.

💡Historical trends

Historical trends refer to patterns of behavior or events that have occurred in the past and can be analyzed to predict future outcomes. In property investment, understanding historical trends can help investors make informed decisions about when to enter or exit a market. The video suggests that by studying historical trends, investors can identify growth phases and make strategic investment choices.

💡Informed decision

An informed decision is a choice made based on thorough knowledge and understanding of the situation. In the context of the video, making informed decisions about property investment involves analyzing market timing, growth phases, and other influencing factors to maximize returns and avoid losses. The video emphasizes the importance of avoiding guesswork and instead relying on data and analysis.

💡Wealth building

Wealth building refers to the process of accumulating assets and increasing one's net worth over time. In the context of the video, wealth building is the primary goal of property investment, and the strategies discussed are aimed at achieving this by leveraging market timing and capital growth to build a portfolio of investment properties.

Highlights

Australian investors are capitalizing on property purchases with consistent double-digit growth.

Only 0.4% of Australian investors own three or more investment properties, indicating a successful strategy.

A five-year boom phase is identified for property markets, with consistent growth during this period.

The aim is to invest in a market at the start of its growth phase, ride the wave of capital growth, and then move to another market as it begins its growth phase.

Each market is unique, and different suburbs within the same local government area (LGA) can have varying growth phases.

The five-year boom window consists of two boom phases every 15 to 20 years for an LGA.

Timing the market correctly is crucial to avoid significant financial losses.

The transcript provides insights not commonly found in podcasts, YouTube channels, books, or widely discussed topics.

Market timing is critical, and entering a market at the wrong time can cost hundreds of thousands of dollars.

The transcript discusses the importance of understanding market trends and growth phases to become a successful property investor.

Examples are provided, such as Frankston's growth from 2013 to 2017, to illustrate the concept of market timing.

Infrastructure projects and government policies can significantly impact property market growth, as seen in Gimpy's boom phase.

Hobart's market growth from 2012 to 2017 is used to demonstrate the potential for significant capital growth in a short period.

Investors should avoid entering a market at the peak of its growth, as illustrated by the downturn in Hobart's market after 2017.

The transcript offers a 72-step process for in-depth market analysis, combining historical trends with future projections.

By understanding the five-year boom window and market timing, investors can capture significant growth and build wealth faster.

Transcripts

i'm going to show you something that

0.4 of australian investors

only know about and that's why they're

capitalizing and purchasing property

after property in a short period of time

they're getting consistent growth every

single year which is double digit growth

which is allowing them to release the

equity and use that everything to buy

another property so i'm going to show

you exactly what you need to know and

what doesn't get spoken about on

podcasts or youtube channels or you

don't hear it in books or read it in

books this is something that you need to

understand and that's going to help you

build wealth 10 times faster than the

average australian investor

now this is something that you know

that a lot of people do not know about

0.4

of australian investors

own three or more investment properties

okay and they're doing something right

so if you want to ban the top 0.4

percent of australian investors that own

three or more investment properties i'm

going to show you exactly what you need

to understand

now

i'm going to be talking about market

timing

now there's a thing called a five year

boom phase that we that we use here at

fresh start advisory

it helps us locate areas that are

starting their growth phase at that

particular time

the five-year growth phase is something

that starts

and will continue for five years

during that five year period there's

going to be consistent growth double

digit growth so 10 or more okay that's

what i mean by double digit growth

during that period you're going to get

some some massive growth but then there

will be a slowdown after that five years

that slowdown can be trending sideways

or it can be trending down downwards

during that you do not want to be

getting in that market

you know because

by doing so you're going to cost

yourself hundreds of thousands of

dollars the aim of the game of the

property is to invest into a market and

make sure you get their new one ride the

wave of capital growth

and then you know make sure you're

getting into other markets while those

markets are starting their new growth

phase

every market is completely different

okay so this is something to keep in

mind

you might have a council area

an lga where you live in that council

area each suburb has different times

where the growth phase has started and

you will see different time and

different trends so i'm going to show

you exactly what you need to know so you

can become a successful property

investor

so like i touched on already you us you

know we're talking about this five year

boom window the five year boom window

that consists of two boom phases in lga

which is your local council area

15 to 15 every 15 or 20 years this

happens for a particular lga which is

your council area so say with me here

during that phase

during that 20-year period there's going

to be these two market cycles they're

going to have massive growth

okay and then it's going to slow down

like i've said

if you get in at year 3 or 4

and then at year five it continues to

grow phase but then year six it slows

down and then year seven it starts to

slow down even more and it starts to

trend down you have cost yourself

hundreds of thousands of dollars because

you're leveraging your money remember

it's property you're putting a deposit

down and then you've got the rest is

you're leveraged

so the aim of the game is to get into a

market

time that market correctly so you

capitalize when you time it correctly

you win on that capital growth so then

the next following year you can release

the equity and use that equity to buy

another property

i'm going to show you exactly what i

mean by this

and here's the first market that we've

i'm showing you for an example frank's

then is 40 kilometers southeast of

melbourne okay it's a fight the

five-year boom window happened from 2013

to 17 this was the first boom window

78

capital growth in five years

unbelievable

as you can see here from 2013 to 17

you can see that there was growth now

some of these markets didn't have double

digit growth this is from a whole suburb

area if we look at from a

individual suburbs in the frankston

region there were suburbs that were

having over 10 capital growth but as you

can see you know they had some

significant growth and then from 2018

the market started to drop off so for

three years you seen you know you had a

six percent you had a negative 15 and

then you had six percent so if you got

in at 2018

okay you you the market grew 13

depending what time you got in it at the

beginning of or towards the end of 2018.

then you just seen a downward trend so

that means there's three years there

that your property hasn't produced any

capital growth that you can release the

equity and go use adequately to buy more

property or to use equity for your own

personal goods if it's buying a new car

going on a family holiday or whatever it

may be

so this is something to keep in mind you

want to be getting in 2013 2013-14 and

that was a time to get in and ride the

wave of capital growth

and then during that period you would

have probably released equity from year

one or two to buy into another market

here's another market

another different market completely

different again this is called gimpy 170

kilometers north of brisbane okay

regional town just past the sunshine

coast

kimbee's just started its boom phase and

this is a beginning to show you as you

can see from 2012 to 2019 has done

nothing it's trended sideways look at

this graph

all of a sudden you've seen this massive

spur

now this is because of government

policies this is because of

infrastructure projects and i'm going to

explain to you and how to identify this

not just by graphs but how to target

this in a later video

doing this is going to help you

understand in your mind okay look at

this market what is it doing no we're

not making an informed we're going to

sorry we're making an informed decision

we're not taking we're not taking any

guesses here

important to understand that it started

its growth phase now you don't want to

be getting into gimpy very great market

affordable market or it's starting to be

a bit unaffordable but you don't want to

be getting into that market now you've

missed out on some the two years of

consistent growth if not three we're in

2022 now so there's three years you have

missed out here of consistent double

digit growth

and i'm going to show you how to pick

these markets

but this is something i wanted to show

you and give you an understanding

another market hobart from 2012 to 18 66

in five years this is a region of hobart

so if we look at it from a suburb level

there was markets that grew a hundred

and fifty percent in five years

150

some suburbs grew 155 percent in five

years which is unbelievable

but i'm just showing you from a from a

regional area first one from a whole

area of the city if you look from 2012

to 2017 you're seeing consistent

double-digit growth

from 2017 that's the time you you want

to be

getting into that market you've seen

from 2018 to 20 the market's done

nothing

and so this is something to keep an eye

out for because

people what they do they may listen to

the news they'll listen to new watch

news um news also read news articles and

they heal this information they hear

this markets doing well and they get in

at the wrong time you know 2016

it was all over the news that there was

or hobart's going for a boom

it's one of the best capital cities that

are growing at the moment 2016 if you

got in there 2016 you've just cost

yourself over 35 percent of growth

if not more

that is unbelievable so this is

something you don't you want to make

sure

you're absolutely making an informed

decision now we don't have a crystal

ball

we can't see when the very beginning of

the market's going to start but we can

make an informed decision and time the

market from a

as i guess a holistic point of view by

looking at things that i'm going to show

you

so this is something that you need to

know so you can take advantage of the

market

like i said 99 of australian investors

do not use this other buyer's agents

don't know a lot about this as well and

this is something that we pride

ourselves on this is because we take

an in-depth knowledge of looking at

something from history trends looking at

it and bringing it to the future as well

and seeing where we are at a market or

what's influencing the market there's a

72-step process but i'm going to give

you something to help you so you can

move on with this research and actually

find and understand what is happening at

a market right at this point in time so

you can make an informed decision click

the details below entering your enter in

your details and you'll be taken to

another video there's going to be more

information there and there's going to

be absolutely more value that you're

going to get to understand about these

property markets and how to understand

that five key boom window and how to

capture that growth