How I went from zero to 28 year old property millionaire | Dan Buchan | TEDxUniversityofYork

Can you live on 48 pounds a week? Can you live on 48 pounds a week? because that's the average pension payout from the average pension fund in the UK after a lifetime of saving after a lifetime of saving now I'm not saying that to scare anyone, I don't want us to be terrified, but that's what we might be seeing if they leave us to our own devices and I say, I'm not saying that to scare anyone, I want us to take control of our financial future. Look, everyone has heard that

property

is a good investment and a lot of people don't know how or why you know that, so they don't get involved in it and what I want to share with you in the next 15 minutes is not only why should we do it but why should we do it to take control of our financial future for those of you who don't know me my name is dan bucken I'm a business owner, author and real estate investor and I'm 28

year

s old.

year

s that I have is a strange occupation for a 28 year old and you know, I didn't start with bags full of money, I started with nothing and I hope that by sharing my story with you a little of the lessons I have learned. and some of the mistakes and blunders, just as I hope to share them, that starts with me today, that's a spark to maybe take a look at the

property

in a way that I never thought possible before, in a way that is more accessible before and if I were with Me seven years ago I was sitting in exactly these same chairs, exactly the same chairs that you are sitting in right now taking exams at the University of York and it's funny that no matter what exam you take, it's always the most important in life.

I was raised in a middle class upbringing, my mom is an accountant, my dad is an auditor and for those of you who are familiar with the middle class, I don't know if you've seen that show, it was very much the environment of my upbringing. , you know it was very much me, so I

went

to do general exams and they told me, son, these are the most important exams of your life and maybe you had this on one level, kid, these are the most important. exams in your life and then maybe your professors in college maybe there are some professors in the room I told you these are the most important exams in your life maybe not the first year and I was raised with that education and they taught me to do money I needed to go to school get good grades and get a job and at 16 I thought that sounds good, you know, let's try it and at 16 I wanted some things, I don't know if you think about the kind of things you wanted when you were 16 years.

You know I wanted to make some money. I don't think we talk enough about making money and it's okay to say that, so when I turned 16 I decided to go downtown. Where I was from, South East London, I got a job in retail and I had a vision, it was a very specific vision of what I wanted. I wanted to be able to buy a car because that would take me to the top of the cool ladder in my head if it worked or not, I'm not sure, but it wasn't just any car, it was a Peugeot 206 cc convertible in black with red leather seats and I wanted that and £500 on River Island. clothes, that's what I needed and I had a little spreadsheet and it all amounted to £3,600, so I thought, "Okay, I've got my little part-time job, but it wasn't adding up enough, so I needed to get other". and at 18 I got a job as a mystery shopper, you know, going to supermarkets and doing that kind of thing and I started getting money, but it was like holding on to sand, you know, the money was coming. but it kept slipping through my fingers and maybe you found that by trying to save money and things like that and that's when I found myself at a fork in the road that I could choose between going into education, you know, like I always planned. to do and I would keep doing it or I could take a year and see how much money I can make, that's what's cool, you know, I haven't achieved my goal yet.

I'll take a year and see if I can earn something. money and still with the same mentality I used the only time I had available which was at night now I don't know if you have been in a night job but I got a job at a place called watts farm and if you can imagine a refrigerator the size of a warehouse bigger than this room where I worked and it was nine at night until six in the morning and I would go to this farm at nine at night, you know, running back and forth, finishing at six in the morning and then maybe I had a nap in the car before I start my retail job at ten, finish it at four o'clock, maybe sleep a little more because I still need to get a good night's sleep and then go back to, you know, go to some stores mysterious and then return to the farm. and this was over and over every day, I had no time left to make money and maybe you've seen this cycle, you know, maybe you've been in this cycle and I started to realize that wealth wasn't about accumulating and working for it. other people wasn't working for me, so I needed to do something different.

I needed to rewire my thinking to take control of my financial future and I did what any self-respecting teenager would do. I

went

directly to Google. and i saw people were making money on stocks and shares so i thought, well you know, i've had a job and now let's look at stocks and my business partner jamie york and i use the small amount of money. We had it and we put it into high risk stocks and shares and we made quite a bit of money doing it, we made tens of thousands of pounds and I thought I was a genius, I thought I was very clever, but what do you think happens?

When a 19 year old suddenly spends some money here it disappears, doesn't it? And I had a great time. I went to college and decided to live within walking distance of campus, but I still have taxes everywhere, I ended up buying a car, but it wasn't a Peugeot, it was a Mercedes, so I bought it and then I realized that after a time I wanted, you know, no, I didn't tell my parents. about the Mercedes because my head hadn't made it yet so I didn't tell them and then I decided to hide it around the corner when they showed up so they did and they finally caught me because they gave me a parking ticket.

They sent me home, so obviously I wasn't the brightest person to know and then I thought, "Okay, this money isn't replacing itself, this money doesn't keep coming in, so I had to do something different again." "It was another fork in the road." and I had to rewind my thinking and maybe you had the opportunity to meet your life and for me I had a chance meeting, I realized that there was a chapel at my university quite alex and he was studying politics, philosophy, economics, he was doing the same degree as me at the same university at this university, he was a couple of years older but he was already a property

millionaire

and I thought, wow, how did he do that and again, it was a decision like a fork in the road.

Looking at the corporate job he was preparing and then I looked at what he had and I thought, you know what I want to try and do that again, although I had to rewind my thinking because I had some conceptions and preconceptions about the property and myself. I needed to challenge them and now that I have created a portfolio I can help with the answers because I thought the rich invest in property, maybe you have thought this too but then I started thinking what if the rich are rich because they invest in property. I can now tell you that of the Forbes 1000,886 who have created or invested their wealth in property, it is what the asset class of the wealthy choose to invest in.

I also thought that it is necessary to have money to have properties and I have spent all mine and money is more accessible now than ever. Interest rates are at an all-time low. People need to use their money in savings accounts to study the rich. I met a guy called Robert Kiyosaki and he says that every person has a money problem, for most people they don't have enough, for some people they have too much and for those people who have too much they need to invest it and help them invest in property It's a The way we can do it the story goes and I can also afford not to do it too and we'll talk about that shortly.

I also thought: Can I do this? A little personal. You know, belief. I can do this. You can do it? I realize there are more people doing this now than ever before. For the historians among you, there was a return of the landlords in 1883, where all the properties in Britain and Ireland were half owned, they were owned by 4,200 people, today there are 2.5. Millions of homeowners and many of them only had a few houses. There are more people doing this now than ever before, so that kind of possibility started to open up for me and what I want to share with you is why property as an asset class. is something we should get into and how the best way I can think of to explain that with the experience I've gained is to just show how I made money in other ways, so at one job I received a salary and obviously something Many of you are employed , maybe you have that too, but what happens if you get sick?

What happens if the company stops? You know the money stops too, right? Furthermore, it takes a long time to achieve massive growth. on that salary, so I thought, okay, that's great, what about stocks and shares? Stocks and shares go up over time, they appreciate in capital value, they do, but you also get dividend income, so you're building wealth in two ways, but I found that it takes a lot of experience to invest in stocks and shares. , you know how to pick the right ones and that kind of thing, and maybe the other thing with stocks and shares is that the value can go down to

zero

now again with a little bit of experience maybe you can mitigate that, but I'm sure the People who invested in blue-chip stocks like Kodak thought their investment was safe and that properties make us money in three different ways, so rental income comes over time regardless. of whether you are there or not, it appears when you sleep continuously, it is really passive if you also have a letting agent, you get capital growth over time, property on average doubles every 10 to 12 years in the UK, now let's be We're under no illusions that it's not a straight line up and we'll see that in a second and then you also get rent growth and this is what people forget most often is that rents are growing faster than inflation. . and more people need housing, so there are highways where property creates your wealth, but when you consider that you can take advantage of this, it adds a sort of superpower to it, you know, a £25,000 deposit buys a hundred thousand pound house. and starts. to eliminate the other asset classes and you can really see why rich people choose to invest their money in property now what I'm not saying is don't get a job, I think that might be terrible advice but I want this to be the spark that makes us think about real estate investment as savings for the future, a savings that grows to continue protecting ourselves so as not to live on 48 pounds a week and today I have created a real estate investment company.

We have sold properties worth over £40 million to hundreds of investors and I have trained thousands of people in property investing and some of the things I have learned and the facts, particularly about capital growth, I feel I should share with you. um because cultivated property in the UK is one of the oldest asset classes in 1086 the doomsday book valued all the land in England at £75,000 who wishes they had invested then by the way in all the land in England for 75 thousand dollars and what? about recently because you know maybe you plan to live for a thousand years for a thousand years, I hope you do, but a lot of people won't, so since 1950 the average house price in 1950 was £1,891, just under two thousand dollars today.

£240,000, so that's in recent times and people could also say what about the times during the collapse in Halifax. They valued all properties across the UK this time at just under 4 billion and this was in 2007 just before the pinnacle of the market went down 10 years later that same property after the ups and downs was worth 6 billion across the UK. UK and this really shows that even price changes are okay for us. You see, property is like a roller coaster, prices go up. and like a roller coaster, they go down, but the only time a roller coaster is really dangerous is if we get off in the middle of the ride, so I wanted to take a quick look at it to make sure because that's why we should do it. this, but why should we do this just to compare what happens if we are left to our own devices the average pension fund in the UK is £61,897 according to the Guardian and by the way that is only for people with pensions and this is after a lifetime? savings, so I want youjust project forward in your head.

Do you know what I'm going to start doing about it? What am I going to start implementing? Because if you leave your own devices with £48 a week is the type of annuity, that's what could happen and also the pension could go to your spouse when you die, but you can't pass it on, you know, so that money It goes away with the property, if we look at a hundred thousand pound house we might think it's okay. Great, that's fantastic. We will add four percent growth per year, which is very conservative indeed, but let's be conservative with the numbers.

It generates you four thousand pounds a year in capital appreciation. They could earn £4,000 a year in net winter rent. That's eight thousand pounds a year for that hundred grand house and that makes you money. It works out to be £21 92p a day every day for the life of the investment so Don't wait until retirement start now and Einstein says compound interest is the eighth wonder of the world and with property you really take advantage of that and you get it for yourself to help you grow and protect yourself, so how do we do it again? I want today. be kind of a spark to let you know that the property is more accessible than maybe you fought in the past, how come we can get into it?

Although this is how I managed it is to invest, we are using other people's money again, many people have funds deposited in savings accounts and need to use them, maybe it is time to start talking to friends and family, many families invest together, You know, maybe they buy a house and even if you put one up every 10 years, it's still starting. savings for your future and that is what we want to protect ourselves from. People can save in Isis and then invest in property when they have enough. You know, I'm not saying it, although you suddenly need to jump in and dive into this.

I failed my degree because I went into property full time and although I'm happy with that, what I want to say now is that if you have a job and a stable income, set aside some money to invest in property, it's a lot of fun too. You accumulate those savings over time there is rent and you can also learn to invest, so I learned to do it. The vision of my company is to be able to increase wealth, increase people's wealth through real estate investment. I just finished a good book called Property Strategy Guide that helps people do just that - you can have a rent to own plan and some people may not know it exists.

It's where you rent a property and gradually save up to buy the house so you can improve the house you rent. and you benefit from the capital value appreciation and the improvements you make and you can also pay someone else to do it through the sourcing service so there are a couple of different companies that help people invest in property, so there are many ways we can get into real estate and more and more companies will allow you to invest through crowdfunding, so even if you have small amounts of money, you can get in now and get a feel for it and try it out.

It is not for me to say what it has to do with wealth. We created, you know, not everyone wants a Peugeot 206 as much as I wish not everyone wanted it, but it's up to me to maybe give you another avenue and take a look at some property in a way that you haven't before, maybe it's a way that's more accessible than what you've done before because if we do what we've always done we'll have what we've always had if we do what we've always done we'll always have had and I don't want this to be maybe the spark for you to think about putting that in your future so you can create the wealth you want.

Everyone has been amazing and I'm done.