F.I.D.O with Phil Hill from Property Club – Part 4.

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Number 2: your LVR levels below 60 percent, around 30 to 50, and in decline. 36, in decline ticks the second rule.

Equity rate of increase is greater than the debt rate of increase. Equity rate of increase? 622. Debt rate of increase? 210. Ticks that.

This portfolio meets those 3 rules, and, like I said, for the left-brained people, you can see there, equity rate of increase is your green equity line, is greater than your debt rate of increase.

Quite simple. If you take those 3 rules away and, when you go back, talk to your property mentor, and this is the form you need to fill out for your property mentor, the FIDO worksheet.

You put in your details, and your property mentor and your branch manager, all the details of your own home. Your purchase price, current value, et cetera, of your property, and then your portfolio details. All your investment properties, year of purchase, purchase price, current value, debt, your estimation of years to double …

Your property mentor can’t give advice, so you need to look at all the information and, like what Troy showed before, we can see what each market’s doing. You have to say what your property years doubling. And what you think your cash flow might be in retirement. If you got a long time, if you’re a young investor and you got 20, 30 years, your portfolio should be neutral or possibly cash flow positive.

Then your variables. So, in the example I had had 90 thousand in 15 years’ time to be financially independent, inflation rate of 3 percent, interest rate, 8 and a half. You can estimate those figures for your property mentor, and you can also give some different values to see how your portfolio comes out.

Short, sharp and sweet. 3 rules. If you remember those … I did the “hands up” before, Kevin: probably a third of the room haven’t had a FIDO done. Homework for everyone is to go home and talk to your property mentor, ask for the FIDO worksheet. You’ve taken down those 3 rules, hopefully. When you get the result back from your property mentor, apply those rules to your own FIDO.

That’s Kevin’s world-class, unique program, available through your property mentor free-of-charge.

Thanks for your time, and hopefully you get a little bit out of that.

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