The Insider’s Way to Achieve
Financial Freedom with Just 4 Properties
The 3+1 Plan
Property is the new Pension
The Insider’s Way to Achieve
Financial Freedom with Just 4 Properties
BY BRETT ALEGRE-WOOD
Published by Delancey Press Ltd.
23 Berkeley Square
London W1J 6HE
Copyright © 2009 by Brett Alegre-Wood
The right of Brett Alegre-Wood to be identified as the author of this work has been asserted by him in accordance with the Copyright Design and Patents Act of 1988. All rights reserved under International Copyright Conventions. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means without prior permission in writing of the publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser.
A CIP catalogue record for this title is available from the British Library.
First published 2009
5th edition
Edited by: Peter Carvell
Jacket by: e-Digital Design
Typesetting and design: Boulevard Studio
Printed and bound by: 4edge Limited
eBook conversion by: Vivlia Limited
ISBN: 978 0 9539 119 8 1
Exclusion of Liability and Disclaimer
While every effort has been made to ensure that this publication provides accurate and expert guidance, it is impossible to predict all the circumstances in which it may be used. Accordingly neither the publisher, author, retailer, nor any other suppliers shall be liable to any person or entity with respect to any loss or damage caused or alleged to be caused by the information contained in or omitted from this publication.
Acknowledgements
This book is dedicated to the many families that have trusted my guidance, listened to my experience, invested wisely and profited from it.
To the mentors, who guided me through the early years while I found my feet in the world.
To my parents, Kevin and Annette, and my brothers, Daniel and Dean, who supported me while I found my passion.
A special thanks to Murray Gray, best mate and business partner, who originally gave me the idea of an educational blog and who has created and managed my online presence since the beginning of the World Wide Web.
To Simon Shankland, another best mate and business partner, who has worked alongside me and applied the principles for himself and for our clients.
To Alana Alegre, my sister-in-law and Marketing Director, who has been responsible for bringing the book together.
To my team, who have supported our clients and helped them to create a plethora of stories.
And finally, to Arlene, my wife. She is the greatest of supporters and allows me the freedom to achieve my dreams.
Table of Contents
Introduction | Welcome to the wonderful world of property investment
Chapter 1 | Why the 3+1 Plan will work for you and become the basis of your richer new lifestyle
Chapter 3 | How do you raise your first capital? It’s easier than you think
Chapter 4 | Watch the cash flow It’s often more important than your capital
Chapter 5 | Which portfolio building strategy will be the best for you? Stop at three properties or build a larger portfolio?
Chapter 6 | The crystal ball of property Always remember the historic property cycles
Chapter 7 | Make more money by making your portfolio grow faster Three strategies to enhance your life and your profits
Chapter 8 | Do you want help in handling your portfolio? Using a property club can save you money, and more importantly, your time
Chapter 9 | Developing your portfolio Your property will do more than beat inflation; it will change your life
Chapter 10 | My Set and Forget Checklist checks to help you achieve the lifestyle you want
Chapter 11 | The one big thing Start your new life with one great goal
List of websites to visit
WELCOME TO THE WONDERFUL WORLD OF PROPERTY INVESTMENT
In The 3+1 Plan I am offering you an answer to the great challenge that we all face at some moment in our lives. If you are like me, this can be summed up in three simple questions:
•How can I achieve a more secure financial life for the time when I want to work less or to start retirement?
•How can I achieve this without it taking up too much of my time?
•And how can I achieve this while having a better lifestyle along the way?
My answer is The 3+1 Plan. That is my shorthand for building a portfolio of four properties.
I believe that with 3 properties to rent and 1 to live in as your home, you can achieve your financial future without wasting your precious time dealing with the day-to-day hassles or worrying about the market.
I know that The 3+1 Plan works because I have thousands of clients across three countries, who have created their own 3+1 Plans and each one works for them.
There are, of course, five traditional ways of planning for the future: pension plans; stock market portfolios; savings plans; investment in new businesses; and property.
I have been in the investment business for over fifteen years. Around the turn of the new millennium, I came to realise that three of those five ways are no longer likely to secure the financial future that you want, while the fourth requires too much luck, extreme experience, time or talent to be reliable.
Pensions, stock market investments and savings no longer bring in serious profits, and investing in new companies is too risky.
It