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EP53- Female Financial Independence Series: How to use property to become financially independent

It is my pleasure to have this discussion with Vicki Wusche on today’s episode who has been named as one of the Telegraph’s Top UK 25 Most Influential People in property.  She is an inspiring speaker, mentor and author of five books including finalist in the Business Book Awards in March 2020. In March 2020, Vicki also moved from public speaking to being invited as a regular podcast guest across Europe, in the Middle East, Australia, America and Canada, as well as the UK. She’s been featured in The Guardian, The Telegraph, The Daily Mail, and The BBC.

The podcast’s particular theme at the moment is around female financial independence focusing on how to use property to become financially independent. Looking at how to get into the “Property Business”, manage it and some tips on how to create an exit plan to get out of the business without so much stress, pressure and liabilities to venture on new business or start a new life.

We normally have the mindset that we are brought up to get a job. School does not tell us to go out and invest or start your own business. Also, we are tied up with society’s expectation that the man is the financial provider and the woman is the home giver. We don’t get to change the way things are until unfortunate circumstances open our eyes. This can be our wake up call to get into a better financial position. Oftentimes, our circumstances will make us realize how financially vulnerable we are. That’s actually the first step, acknowledging your current financial standing and the second is thinking about how you could change the situation. 

Sit down, look at all your money, get help from the experts, understand the tax benefits of each asset class, look what you’ve got. Create a plan, and understand the pros and the cons, the risks. When ready, go for it.

Do the math. Math works. And work with someone who can help you particularly for the first deal so that you know what you’re getting into. Remember, If it’s too good to be true, there’s got to be a catch. Not only were you putting down money cash of yours, you will, more importantly, have to be very aware of your circumstances, your risk profile, and how you’re going to mitigate the risks of investing. Property isn’t about get rich quick. It is a brick bank that will make you money. On the long term investment.

Do the business with your family. Invest collectively as a family, with people you trust. This way, all costs such as mortgage deposit, the solicitor, the survey, the broker, insurance, certificates, stamp duty, legal advice, repairs and all sort of costs are covered to get started. Starting capital is bigger especially if you belong to the lower wage earner so it is wiser to set-up a limited company with your family.

Don’t fall for the new builds because you’re paying a premium. It’s definitely not worth what you paid for, you need to have that analogy in mind for any new property.

Buy houses rather than flats because flats come with a degree of lack of control. You may have paid for permission for this piece of space but you don’t own the block or the ground. You don’t get to make your own rules as well. 

What is then the most effective exit plan? A concrete strategy and thought process is the key to an efficient exit plan. And here are options you can take:

Train your children. There’s a probability that one of them, if not all, will like the property, and then we’ll take over the running. Teach and guide them how to run the business. Start training them as early as possible. Get into a five year plan. Make sure that that property is embedded in the business system, that they know how to take over the reins and manage the business system. 

If you have multiple properties, strategize well. You could take a portion of the properties, clear the mortgages on the other. Have a batch of properties that are mortgage free and benefit from the income. Create a 5 year plan and in the 4th year, assess your situation and adjust accordingly.

Have enough money for maintenance, and a tenant-finding team. And gradually, by the time you’ve got to 20 years, you’ve paid some off, you sold some, you’ve kept some. But what’s nice is to be in a position where you can get into five year periods of stability. 

Be more conscious of your own personal financial position, your own role, and responsibility within the family finances. Especially for women that provide the income for the home and take care of their children, this kind of business will make you feel secure long term and have the sense of stability as you get regular income without working so many hours to monitor the properties. You will feel more empowered.

Reach out to Vicki on Facebook, Instagram, Linkedin or Twitter for more guidance and assistance on starting this kind of business. You can also reach out via email. Visit her website for more information. There are tons of resources, workbooks and articles to help you out.

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