James FitzGerald - Bulletproof Investing

1 COVER

2 TITLE PAGE BULLETPROOF INVESTING GAINING FINANCIAL CONTROL IN UNCERTAIN TIMES JAMES FITZGERALD

3 COPYRIGHT First published in 2021 by John Wiley & Sons Australia, Ltd 42 McDougall St, Milton Qld 4064 Office also in Melbourne Typeset in Sabon LT Std 11pt/14pt © John Wiley & Sons Australia, Ltd 2021 The moral rights of the author have been asserted ISBN: 978-0-730-39455-6 All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above. Cover design by Wiley Author photo supplied by author Disclaimer The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

4 DEDICATION To my parents; my best mate, Dad, and the strongest woman I know, Mum .

5 INTRODUCTION

6 PART I: GROWING PAINS CHAPTER 1: Losing my best mate Finding clarity amid grief CHAPTER 2: Lessons in life and money My first encounter with financial stress CHAPTER 3: Learning from the best: Uncle John A timely career change CHAPTER 4: Mindset: the game changer Change your outlook, change your life CHAPTER 5: The power of mentorship Tapping into the right side of the brain Finding my ‘why’ Mind mapping CHAPTER 6: Riding a financial rollercoaster The beginning of the end CHAPTER 7: Financial control: the basics Life-changing lessons CHAPTER 8: How to spend less than you earn CHAPTER 9: Keep cash as your king Regaining control CHAPTER 10: Work smart, not hard It's simple, but not easy The heart, the head and the hands

7 PART II: THE BULLETPROOF APPROACH CHAPTER 11: Buying in There’s only truth in numbers The value is in the land CHAPTER 12: Getting started Lender's mortgage insurance Government grants My first property CHAPTER 13: Cash flow: the oxygen of investing Managing cash flow Negative gearing CHAPTER 14: Compound growth: the Eighth Wonder of the World Compound growth and property CHAPTER 15: Turning up the volume Borrowing 90 per cent Borrowing 80 per cent Time is your best friend CHAPTER 16: Assembling a team Mentor Banker/broker Property manager Accountant CHAPTER 17: Little habits, big results Wake up early Make the first hour of the day yours Get your heart going Get enough sleep Practise gratitude and humility Visualise Spend time with like-minded people Be a reader, be a leader Turn off CHAPTER 18: Making the best of the worst Previous crises Focusing on the facts The insight Population growth and supply Affordability What's the lesson? CHAPTER 19: Ready, set, go!

8 APPENDIX: FAQS What if I lose my job or my income reduces? What if I can't get a tenant for my property? What if interest rates increase? What if my loans go to principal and interest? Is it realistic for property to increase in value like it has in the past? What if my tenant leaves suddenly or damages the property? Won't the banks stop lending me money at some point? What if the government abolishes negative gearing? What are holding costs? Shouldn't I be diversifying?

9 INDEX

10 END USER LICENSE AGREEMENT

1 Chapter 11Table 11.1: median house prices in the main capital cities over the past 40 y...Table 11.2: comparing the cost of a block of land per square metreTable 11.3: value of properties purchased by my parentsTable 11.4: land value of properties purchased by my parents

2 Chapter 12Table 12.1: net position using good debtTable 12.2: your investment amount assuming 80% LVRTable 12.3: your investment amount assuming 90% LVRTable 12.4: return on investment (ROI) at 90% LVRTable 12.5: return on investment (ROI) at 80% LVRTable 12.6: return on investment (ROI) without leverageTable 12.7: return on investment (ROI) at 90% LVR and 50% growthTable 12.8: return on investment (ROI) at 80% LVR and 50% growthTable 12.9: my investment contribution before government incentivesTable 12.10: my investment contribution with government incentivesTable 12.11: my investment contribution with John's investmentTable 12.12: before repaying JohnTable 12.13: after repaying John

3 Chapter 13Table 13.1: your investment amount — land only (80% LVR)Table 13.2: return on investment (ROI) — land onlyTable 13.3: cash flow — land only at 80% LVRTable 13.4: return on investment (ROI) — house and land onlyTable 13.5: cash flow — house and land at 80% LVRTable 13.6: cost of holding a property (without depreciation)Table 13.7: cost of holding a property (with depreciation)

4 Chapter 14Table 14.1: equity position — one property, year 3 (90% LVR)Table 14.2: available equity — one property, year 3 (90% LVR)Table 14.3: equity position — two properties, year 3 (90% LVR)

5 Chapter 15Table 15.1: equity position — two properties, year 5 (90% LVR)Table 15.2: available equity — two properties, year 5 (90% LVR)Table 15.3: equity position — four properties, year 5 (90% LVR)Table 15.4: equity position — four properties, year 10 (90% LVR)Table 15.5: equity position — four properties, year 10 (80% LVR)Table 15.6: equity position — four properties, year 20 (90% LVR)Table 15.7: equity position — four properties, year 20 (80% LVR)

1 Cover Page

2 Table of Contents

3 Begin Reading

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