Lunch Money Property Investing Education System

Lunch Money Training Program Event Times and Details

You will find details of upcoming training days at the Event Information button to the right of this page (scroll to the bottom of the page to see; dates, times and locations).

I’m unable to attend this Round

It is not uncommon for people to join us for the program even if they have missed the current round of events or are unable to make the upcoming round of events.
There is a great deal of value to be covered prior to the live training session and in particular the pre-coaching process, where you work one-on-one with one of our Certified Property Investment Advisors to review your current circumstances, ‘test-drive’ your finance ability and look at how an investment property purchase may look for you.

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-3-get-street-smart/

Will the program work for me?

Each individual’s circumstances are unique and it is very difficult to determine when the model is a good match, without delving into your financial scenario in some detail – this is partly what the Lunch Money Program is designed to do.

Having said that, the model may be a good fit for you if any or all of the following sound like you:

  • Paying too much tax
  • Have existing equity in your home
  • Are already on the property investment ladder (whether your experience is good or bad)
  • You have a good super balance and/or contribute to super.

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-1-vision/

Does Phil conduct one-on-one training?

Phil conducts the Live 1 day training personally.

There is lots of time in the training day to ask questions and have the opportunity to talk with Phil in breaks.

Who can I bring as a partner?

For the purpose of the Lunch Money Education program your partner can be anyone that you plan to invest with jointly. This is typically a spouse/defacto, but may also be a friend, sibling, child etc.

Do I have to do the training?

We understand that at times the real attraction is joining the Lifecorp Buyers Group and moving straight onto building your property portfolio and that the training program seems like an unnecessary step.

In the seven years that we have been doing this our experience is that it is essential that the training component is completed prior to moving on to the Buyers Group.

This is largely because where the training is not completed the purchase process is often held up as concepts, processes and terminologies (that were covered in the education) need to be clarified.

In addition, we believe it is important for our members to understand the foundations of the model so that they can make informed decisions as they progress through their property journey.

You may find this Blog Post of interest:

http://lifecorp.com.au/whats-the-right-property-model-for-you/

How do Minimum Deposits work?

Minimum deposits are used to secure the purchase contract. This minimises the amount of time that you have full (usually 10%) deposit funding in place, and subsequently may (if deposit is borrowed against existing equity) reduces your purchase costs.

You may find this Blog Post of interest:

http://lifecorp.com.au/1-deposit-how-investors-successfully-do-this-every-time/

What does the Lunch Money Education program include and what follows?

The Lunch Money Property Investing System is a comprehensive step-by-step process for building a bridge to your financial future, including Coaching, Education and a personalised Action Plan!

The program is divided into three modules:

  1. Pre-coaching:- work with your very own dedicated Lunch Money Property Coach. Get clear on your vision, your current situation and your capacity to invest.
  2. Live Training:- a value packed 1 Day Live Training. Learn how the Lunch Money Property Investing system can work for you to grow your portfolio for just $20 a week (or less). This session includes our inner circle Hot Spotting Master Class, where you will learn how we identify investment opportunities and exactly where and why we are buying right now.
  3. Post Training:- this is your very own Lunch Money Game Plan – gain tangible “next steps” to build your bridge towards the financial future you really want.

This program is not designed just to deliver the theory of the Lunch Money System. The objective is to relate the model to your personal circumstance and effectively move you closer to building the property portfolio that will support your financial goals.

What happens after the program?

Graduates of the Lunch Money Property Investment System Education Program have the option to either;

  1. Follow the Do-it-yourself path, or
  2. Become a member of the Lifecorp Buyers Group.

Members of our Buyers Group receive many benefits, including;

  • Access to exclusive market and property research
  • Ongoing access to Hot Spotting Master Classes
  • Access to all tools and resources via your own online members portal
  • Access to the Lifecorp network of preferred professional, including discounted service rates
  • Access to Lifecorp approved Buyers Agents (Certified Property Investment Advisors)
  • Access to Lifecorp Member Exclusive property investment opportunities

People join the group for various reasons, including; ongoing education, research materials and our property investor community. The common reason to join amongst all members is to get actively involved in building their own investment property portfolio.

The membership is $2,997 (one-time fee).

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-6-control-the-deal/

How do you get Developers to Agree to terms?

We have very strict requirements when approaching developers to provide stock for our members and not all developers will be interested in meeting our terms.

The fact that we are a group that will buy multiple properties is a big factor in our ability to negotiate strict terms. This in turn provides developers with security. The impact of this is even more powerful given we are very early into markets which can give developers the momentum they need to advance their projects.

What is a Holding Cost?

The term ‘holding cost’ describes the weekly after-tax cost of holding an investment property.

The rental income from a property will often not cover the full cost of finance and the shortfall must be covered – however the shortfall amount is effectively reduced by certain tax implications usually attached to an investment property. The end result is that the expense of servicing the borrowings attached to the investment property are reduced to “Lunch Money” amounts when considered on a weekly basis.

You may find this Blog Post of interest:

http://lifecorp.com.au/affordability-the-4-things-i-test-every-time/

What do you mean using TAX to pay for the house?

One of the fundamentals of the Lunch Money model is purchasing properties that maximise your ability to reduce your taxable income via associated tax deductions. This effectively increases you’re after tax income and assists you to service the borrowings.

(If you do not currently pay very much tax the impact of the model may be diluted, however it is impossible to know to what extent without addressing your specific scenario– which we do in the Lunch Money Education Program)
It is possible to benefit from tax deductions not just at the end of the tax year but throughout the year by using what is known as a Tax Variation.

More detail on this subject requires a qualified professional – as part of the program these types of question can be answered by our network of third party professionals.

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-2-protect-your-pocket/

30 Day Money Back Guarantee

The 30 day money back guarantee is from the date that you attend the Live Training component of the program.

What is the Success Rate of the Program?

We see just over 70% of our Members go to property contract in their first year as a Lifecorp member.

We are very proud of this result for our members and are always working to improve further.

Does the Program only provide benefit in retirement?

We often talk about building wealth and income in preparation for retirement. This is largely as retirement is a major goal for many people.

Of course, we all have different goals and there is no reason why you cannot benefit from the program before retirement. This will depend on your goals, your current circumstance and how long you have to achieve those goals.

Finance and Superannuation

How much Super do I Need?

We often get asked about superannuation.

Firstly, please understand that superannuation is just one possibility within our model and we have many people who participate in the program with a view to only investing in their personal names or perhaps until they have built up their superannuation balances.

The question of how much is required to invest using your superannuation is dependent on your circumstances and is not strictly just about your fund balance.

We have seen people invest within their Self-managed Super Funds with balances from around $100,000. However, it is vital that you always seek independent financial advice with matters like this.

What are the income and equity/savings requirements?

We often get asked about financial requirements for participating in the Lunch Money System.
We see many people use our system who do not currently have a family home or equity in other property and others that have no cash savings to fund a purchase.

This is a question of what we call “Finance Ability”. This is your ability to secure the necessary finance to complete an investment property purchase.

In general terms, lenders are looking for you to satisfy two major criteria;

  1. The ability to fund deposit and costs
  2. The ability to service the loan

Equity in an existing property is often used to provide the purchase deposit and cover costs. However, where there is no existing equity (or a short fall) cash is usually used.

In assessing your ability to service the loan, lenders will consider your; income, employment terms and history and other key considerations. Lenders may also factor the rental income into serviceability calculations.

If you are concerned about your ability to secure funding and wish to clarify this prior to embarking on the program, you may like to talk with your mortgage broker.

We do cover this and review your personal circumstance in the pre-coaching component of the program.

You may find this Blog Post of interest:

http://lifecorp.com.au/3-investing-essentials-2-affordability/

I’m retired – will this work for me?

We often get asked about the model and its application for people already retired.

This question is largely becomes one of finance ability and time in the market.

Lenders have varying polices and it would depend on your personal circumstances whether funding for investment property purchases may be secured (please disregard this point if external funding is not required).

With regard to time in the market it is an objective of our model to time purchases in such a way that capital growth is achieved early in the ownership experience. Given this, you would need to consider your personal circumstance and goals (specifically time frame) to understand better how the model may apply.

It may be worthwhile checking with your bank or mortgage broker to establish your ability to fund investment property purchases before proceeding further.

I’m self-employed - will this work for me?

We have many self-employed people complete our program.

One of the key variables with been able to move forward and implement the Lunch Money System to invest in property is the ability to secure funding for purchases. Self-employed applicants will be subject to different lending criteria to PAYG earners, however the bottom line is that lender will still be looking for security (deposit) and serviceability (income).

Many self-employed people have low superannuation balances, which is fine too as only a small part of what we do is through superannuation and most investments take place in personal names.

You may find this Blog Post of interest:

http://lifecorp.com.au/the-rule-of-72/

How do SMSF Properties get paid off?

Loans for properties purchased within your Self-managed Super Fund are paid off by a combination of rent and super contributions.

Why Interest Only Loans and not P&I?

Interest only loans are used to minimise holding costs in the early stages of ownership. In addition, many lenders now offer interest only loans with very effective principle payment options, for when the time comes to paying down debt.

Typically principle reductions do not take place until rental returns have grown as a reflection of capital growth.

Of course, the best structure for your personal circumstance requires careful consideration by finance professionals.

In our Lunch Money Property Investing System program we look in depth at your scenario and have finance professionals assess your position with a view to understand the best strategies for you.

Entity and Tax Questions?

We have members that purchase in a variety of entities, including; personal names, joint names, trusts (family and discretionary) and self-managed super.

Questions relating to tax claims / SMSF / entities are really for qualified professionals – as part of the program pre-coaching these types of questions can be answered by our network of third party professionals.

Lifecorp and Membership

What is the Buyers Group and how does Membership help me build my Portfolio?

The Lifecorp Buyers group is a property investment community and the objective of Lifecorp is to assist members to build their own property portfolios with minimal distraction from everyday life and maximum safety by following our unique 7 Step Property Investment System.

Our group differs greatly from any other group in the way that we help our members ‘buy’ properties and do not ‘sell’ them properties.

Fundamental to the system are:

  1. Timing – to identify 7 O’clock markets that will provide capital growth very quickly
  2. Holding Costs – to minimise the impact of holding the property to “lunch money budget” amounts.

To meet these objectives, Lifecorp conducts extensive independent research on all targeted locations and a stringent checklist must be satisfied before proceeding into that market.

Once a target location is identified Lifecorp goes to work to identify what type of stock is/will be in demand and liaise with potential developers.

Once a suitably qualified developer is identified Lifecorp will control contracts by capping build costs, extending inclusions and addressing other factors that can often leave an investor exposed to price creep.

With all this in place the members Property Coach, who is a Certified Property Investment Advisor, will act as the members Buyers Agent for all purchases. The Property Coach will present purchase opportunities that meet the member profile and then support the purchase process from contract exchange through to settlement. Members pay a negotiated group-rate Buyer’s Agent fee of $4,500 (+gst) for each purchase (50% savings on standard charge).

We have seen many members purchase multiple properties with us. This is a testament to the quality of investment they add to their portfolio through being a member, the value placed on Lifecorp’s research, how effective the ‘group buying’ power negotiations with developers are at reducing costs and improving stock quality and the value of the Buyer’s Agent services.

The membership is $2,997 (one-time fee).

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-4-where-to-buy/

Do I have to become a Member to get access to Lifecorp Property Opportunities?

Yes.

Lifecorp property investment opportunities are exclusive to Lifecorp Members only.

You may find this Blog Post of interest:

http://lifecorp.com.au/turning-equity-into-wealth-the-habit-that-holds-most-aussie-families-back/

Does Lifecorp Sell Properties?

Lifecorp is a Buyers Group and does not sell properties.

We use the buying power of the group to negotiate deals with developers in areas that meet our research criteria. Properties that meet the member’s individual goals and circumstances are then presented on request as investment opportunities. This varies greatly from other models that essentially are ‘moving’ stock for developers.

“Lunch Money Budget” Sceptic?

We understand that it can be difficult to grasp the notion that the purchase of an investment property can present as little (or less) than a lunch money budget per week out of pocket expense.

This is achieved by identifying the right opportunity in the first place, controlling the purchase and maximising tax advantage.

It is important to understand that this amount refers to holdings costs post-purchase. For each purchase the buyer will need to fund the deposit (usually 10%) and secure finance for the purchase.

In the Lunch Money Training program we cover in more depth how this is achieved. In addition, your Property Coach (a Certified Property Investment Advisor) will generate a report on exactly how this could look for you based on your actual circumstance and a sample property purchase.

Does this work Overseas?

No. The Lunch Money Property investing system is designed for the Australian market. It considers legislation and tax rulings specific to the Australian market place.

Why are some examples Cash Flow Positive?

One of our key objectives is to minimise the holdings costs of investment property ownership – to a “lunch money budget” per week (or less).

We often see members out-perform this objective and actually have positive cash flow properties right from the start.

This situation is the result of been able to identify sound investment opportunities. In many cases like this the property will have actually experienced capital growth before the member has even settled the purchase.

Are all the Investment Properties Brand New Homes?

All properties purchased using the Lunch Money Property Investing System are brand new. This is fundamental to maximising tax benefits and subsequently minimising holding costs.

Is it safe to use equity in my home?

All investments carry with them varying degrees of risk.

A key objective of the Lifecorp 7 Step System is to minimise exposures through sound and comprehensive research.

And we certainly stay away from those ‘emotional’ and ‘well-marketed’ investment locations that have unfortunately caught investors in the past (for example; single industry driven markets, like mining towns).

Can I talk to People who are already in the group?

Yes. We invite interaction between our members and education participants.

At the completion of the Live Training Day you will have the opportunity to meet and discuss results with existing members before entering the Hot Spotting Master Class.

Do you see property prices continually growing – some areas are considered over-valued?

Historically residential house prices in Australia have continued to grow and although no one can see with certainty what will happen looking forward we have not identified any factors that will disrupt this trend.

Yes, at times the market sees correction but the overall trend remains positive.

You may find this Blog Post of interest:

http://lifecorp.com.au/capital-growth-what-will-my-property-be-worth-in-20-years/

Property Investing

Where is the Property Clock at?

If only it were that easy.

There are literally hundreds of property cycles happening at any one time throughout Australia…..a major city alone may have tens of cycles!

With our model we start the process of identifying target location by looking at National and State level influences – political policies, economic performance, key industries, incentives and more.

We then increase the focus to narrow down regions, areas, towns/suburbs….all the way down to the exact estate or area in the target location.

We then research the actual property types that are in demand in that area, what the make-up of the rental market is and who can supply/build suitable stock………..within our terms.

You may find this Blog Post of interest:

http://lifecorp.com.au/3-investing-essentials-1-timing/

What Property Should I buy?

Which property to buy?

This question is much bigger than it may seem…... Old property vs new property? House vs unit? Income vs capital growth?Your time line? And more!

All properties purchased using the Lunch Money Property Investing System are brand new. This is fundamental to maximising tax benefits and subsequently minimising holding costs.

Further, all Lifecorp investment locations are subject to extensive market research and a stringent acquisition checklist that covers things like; timing, capital growth opportunity, property type, target suburb, and much more.

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-5-what-to-buy/

Are dual income properties a good option?

We love dual income properties….provided they meet the rest of the Lunch Money system.

For example, a dual income property purchased at the wrong time of the cycle or with minimal tax advantage may not be a good investment.

Are apartments a good Investment?

In general, we stay away from apartments. The key reason for this is the potential exposure to big swings in demand as a result of oversupply.

All too often, we hear stories of people buying in apartment blocks to only have another development soon after flood the market and subsequently drive demand down – this effects both rental income and capital return.

How long do you watch a market for?

It is not so much about the length of time that we watch a market, it is whether or not we see the key indicators that we are looking for.

At times we have watched a market for a number of years waiting for the indicators, at other times we investigate an area and find the indicators we need to make a decision.

Where do you get your data on Timing and Property Cycles?

Identifying cycles and market timing is an extensive process that draws on many inputs.

With our model we start the process of identifying target location by looking at National and State level influences – political policies, economic performance, key industries, incentives and more.

We will also consider data from various resources, like: RP data, SQM Research and more.

More importantly, we get on the ground in target areas and talk with agents and developers and view first-hand the impact of drivers that we have identified.

It is not anyone of these inputs that is key, but rather a balanced view through experienced eyes.

You may find this Blog Post of interest:

http://lifecorp.com.au/lunch-money-property-investing-step-7-duplication/

Commercial Property

I’m sure there are plenty of great commercial property opportunities out there.

Our focus is purely residential. We are experienced in this field and know that the Lunch Money System has already worked for hundreds of people.

Hopefully there is a place in your portfolio for residential.

Should I use a Property Management Agent?

Unless you have time resources and local market knowledge then always use an agent. If you chose one who is a property management specialist and owner operated (not sales people) then your property will be taken good care of. In saying that, it does pay to keep track of dates of inspections done, lease renewal dates etc. to ensure your rent is always reviewed for increase and always, always request photos.

Yield and Capital Growth Expectations?

We track performance over previous 10 years min. Our expectation for yield is a min of 4.5% but our current markets are performing well above this expectation (5 to 7% depending on property type). Capital growth expectation can only be based on positioning yourself to be best placed amongst the best preforming 'City and Regional Hub' markets at any given time without exposing yourself to high risk area (mining towns) to try to outperform the mainstream markets.

My existing Investment Property is not performing – should I sell it / what should I do?

Unfortunately, we hear all too often about under-performing investment properties.
What to do?

There is not one “fits all” answer to this question – the variables are deep and vast, ranging from the property type itself and its suitability to the location rental market to underpinned macro demand factors.

Just as there is not a “fits all” answer here, the Lunch Money Training Program is not a generalised education program – we delve into your current situation during the pre-coaching module. This is where we may find more direction on this issue.

You may find this Blog Post of interest:

http://lifecorp.com.au/property-cycles-vs-property-tides/

What do you recommend for First Home Buyers – occupy or rent?

The question of whether to, as a first home buyer, purchase with a view to occupying or rent the property is a topic of great debate in Australia.

The great Australian dream is to own your own home. This is a very emotional position based on people doing what their parents did, their peers are doing, and what they want to do. There is nothing wrong with this dream…………..so long as you identify that it is a very emotional decision. Of course, over time you should see capital growth and this is good enough for many people.

What is often not considered is the fact that this home must be paid for from after-tax income and has no tax deductions attached to it – effectively making it a very expensive purchase.

In contrast, the decision to purchase with the view to be a land lord and rent the property is founded in more business-based rational. This purchase does not carry the emotion of ‘living in your own home’ but does carry the advantage of an income stream (rent) and potential tax deductions.

There is not a ‘best’ approach – just the one that suits you best.

As part of the Lunch Money Training program we work with you to identify what your long term objectives are, understand your current scenario and consider how to bring those two things together.

You may find this Blog Post of interest:

http://lifecorp.com.au/gen-y-vs-gen-x/

What about the property bubble?

What property bubble? This is just media hype. The last true property bubble was 2000 to 2004 which produced much greater growth than we have seen in the past few years (or the last 10 years), and the recent growth has been limited to Sydney and Melbourne. My safety measure is to not get caught up in these 'emotional markets' where you are paying way too much to compete with the 'owner occupier' markets. I prefer to stick with affordable price points (the most rentable and most sellable) in markets that are just starting to turn and are yet to see the locals get all emotional about grabbing property. I'd also stick to areas that have strong employment (both short and long term), offer great rental yields (tough in VIC), and are over supplied (stay clear of the unit market). If you keep your holding costs to less than $20/week, even if it takes a few more years than expected to get substantial capital growth, there is no pressure.

What about DHA properties?

DHA stock has proven to provide slower capital growth and often weaker yields than comparably price stock in the same area. It's also far more important to decide on the target market first before you worry about the property type. Often DHA stock is being purchased for the perception of safety (guaranteed rental) but the owners can often miss out on the benefit of great timing and other fundamental variables.

Do you use Options?

The Lunch Money Property Investing System is a proven formula for investing that Phil has personally used for more than 20 years.

The system is based on some key fundamentals that are easy to understand, easy to apply and provide safety.
Options are not used in the model.

What is The Big Property Shift live event?

This is a one day live event where you will discover how Phil became an “Unlikely Property Millionaire” growing his fortune over the past two decades (even though he only ever earned an average wage) by accurately predicting key market “Shifts” and how you can be in the “box seat” to make the most of the BIG property shifts that are coming in the next 12 months.

As a bonus you also get to stay for Phil’s Hot Spot Master Class which is your "Golden Ticket" into Phil’s inner circle of investors. During the Hot Spotting Masterclass, which is held regularly with top A Grade Investors, we discuss WHERE we are buying RIGHT NOW (these are the growth markets you won't see in property magazines or in the media for months to come). Being in this room is worth thousands!

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