Millionaire Case Studies
Welcome to our first edition of Custodian Millionaire Case Studies.
I am excited to launch this ground breaking publication. Where else can you find a publication of case studies that profile ordinary Australians all using the ‘Custodian Principles’ that have built extraordinary wealth? I am also very proud of the people who feature in this publication and extend my special thanks to them for sharing their stories and their inspiration. These are the people we call our ‘property millionaires’ – clients who have built net assets from residential property in excess of $1 million. The number of these clients is growing every day.
At Custodian , we measure our success by our clients’ success.
My wealth building model is detailed in my bestselling book, Seven Steps to Wealth. In 1998 I wrote the book with the singular goal to teach the average Australian how to build wealth in real estate.
The number of Australians back then who were financially independent in retirement was pitiful (less than 5%), and today in 2012, post the GFC, that number is probably even worse with so many retirees losing so much in superannuation from the stock market crash during the GFC.
Since writing Seven Steps to Wealth, we have had thousands of investors who have bought properties through us, whether they have purchased one, or multiple properties with a portfolio of twenty.
Our clients are well educated – they know good principles of wealth building. Their focus is on compound growth and putting a structure in place using their income, tax deductions, and the benefits of property – growth, leveraging and income – to establish a basis that can build a portfolio. Our clients are familiar with finance, bank valuations, construction costs, tax, borrowing capacities and rental growth.
The system works because it is based on a simple truth; ‘demographics is destiny’. We study population growth, housing starts, affordability, household disposable income and, of course, job growth. The demographics that underpin all this have never been stronger in Australia, with our population growing at the fastest rate in history by nearly one million people every 26 months.
Our clients are motivated, because building wealth is about repetition, and repetition takes discipline. Whilst demographics are our destiny, the number of Australians that will build a portfolio of more than four properties is a fraction of a fraction of 1%. This is an elite group, and it takes dedication and discipline. There is a saying that environment is stronger than willpower, and our Custodian millionaires work hard at ensuring their environment is the optimum for success. These are the teachings that are touched on in Seven Steps to Wealth but go beyond that to what the Custodian program really is.
This year and beyond, the growth in affordable housing looks set to continue, as the fundamentals that have made this performance possible (supply and demand) continue to work in the investors favour, with continued population growth and further shortages of supply. Developers simply cannot get the much needed funding, or council approvals to bring sufficient new stock onto the market.
Consequently, the rental market is a key driver for the success of the Custodian program. As the average Australian finds it increasingly difficult to afford their own home, the demand for quality rental properties close to employment centres and other community facilities is forecast to grow.
For wealth builders, the secret to success is just one thing – repetition.
The Custodian program is about practicing that repetition. It is not about buying the one property that is going to make you wealthy or even the best property. It is about buying a property that you can use to duplicate and obtain compound growth.
The principles aren’t new. I’ve been using them for myself and my clients for many years – and they work.
They’ve given us financial freedom, security and a great lifestyle for ourselves and our families. And that’s just one part of what building wealth is about. For me, it’s also about the potential to make a difference in the world: an opportunity to be all I can be. I think of it as a journey to discover purpose.
This is what so many of our Custodian millionaires have done and are doing.
You will notice something that they all have in common. They are passionate about what they are doing and where they are going. They focus on one thing and do it well, and they are excited about building a future for themselves and their families. I hope they inspire you and you can see what is possible for you to create as well.
That pretty much sums up the Custodian philosophy.
Welcome to the journey.
John L. Fitzgerald, CEO Custodian
*extract from Custodian Millionaire Case Studies magazine printed in 2012.