Business Owners 04 – Can’t See the Forest For the Trees?
Hi, Brian and David here from Bugwash property. We’ve spoken in the past about busy business owners. They get so busy looking after everything else other than themselves, that they forget about the future and we’ve got a prime example of a couple that we spoke to this week. Do you wanna just tell us more about that, David?
Yeah, spoke to a highly intelligent, awesome couple to speak.. let’s just call them Ken and Barbie, and these guys bought a business at the age of 22 and they’ve worked that business and managed that business and grew that business very successfully over 30 years. They’ve now reached 52. Their share of the business is worth about $5 million and, when you think about it, it’s very interesting. So it took them 30 years working the business very hard to get to 5 million. Now, if they all do is just park that $5 million in residential property and they invest in the right properties in the right markets at the right times, the worst they’re gonna do is they’re gonna double that $5 million and this is with no leverage, by the way. Over the next 30 years, from 5 million to 10 to 20 to 40 million, so it’s pretty exciting and that’s just on the capital growth side of things and the, you know, you can work on a rental return of about 5%. So it’s a $250,000 a year annual income on the $5 million, yet they still get to enjoy that capital growth along the way as well, so it’s a pretty interesting example of what business people can do if they just look at more creative ways to grow their wealth after their business days are finished or, more importantly, whilst their billing their business on the side as well.
Yeah and I think that’s the one thing that these guys admitted that they’d forgotten on the way is building that wealth portfolio during their journey of owning that business.
Yeah, in fact, they also had a SMSF sitting there with $200,000 sitting in it doing absolutely nothing and if all they did with that was take that money and buy one property at $500,000 over 20 years, for example, the $500,000 property goes to $1 million, goes to $2 million, you’ve turned $200,000 into $2 million just with your $200,000 sitting there doing nothing so it’s very exciting what you can do when you decide to make every post a winner and just look at different ways of doing things.
Yeah, but you need help along the way. When you’re running a business, you just run out of time.
Yeah, yeah. It’s all about finding the right people that can help you and take you by the hand and take all that stress away and just show you how to do it ’cause they’ve already done it before you.
Yeah, absolutely. Thanks, mate.