ANR recently interviewed leading educator and self-made millionaire Jamie McIntyre and posed the question- “if you were a middle class Australian living in an expensive city such as Sydney Australia, what would you do to quit a normal 9-5 career and retire to a life of freedom?”
McIntyre says, “many middle-class Australians struggling to pay for expensive mortgages in cities such as Sydney are only an app or two away from financial freedom. Most people fail to keep up with technology and innovation. As a result, they are stuck in the 19th century industrialization model of the world, which is the 9-to-5 working life.
“We are now in the 21st century, therefore does it not make sense that we adapt and innovate to the 21st-century and start doing things differently? Let me share with you an example. What would I do if I was a middle class Australian living in an expensive city such as western Sydney, stuck in a job that I might not particularly like, and looking for a life of freedom, living somewhere else that’s much nicer. Maybe even somewhere close to the beach and/or the water.
“Unfortunately, most people don’t know how to get out of the rut. However, if you’re aware of what’s possible now with technology such as apps and platforms such as Airbnb, Uber, Amazon, Airtasker and others, you could use one or more of these technology platforms to completely bring your lifestyle into the 21st-century and no longer be forced to work a full-time job.
“You could effectively semi retire or retire completely if you wanted to. I know it sounds too good to be true, but the only thing stopping many people from taking advantage of such a lucrative new technology to enhance their lifestyle is a lack of knowledge followed by lack of execution.
“So, let me use a case study and assume a couple are working hard to pay off a mortgage in Sydney. Let’s assume the house is worth one and a half million dollars. For those who don’t know Sydney house prices, a one and a half million-dollar house in western Sydney isn’t necessarily a mansion. I’ll share a few examples with some links to properties that cost $1.5 million dollars in Sydney and aren’t even particularly attractive. What I would do if I wanted a better lifestyle is, I would sell my house in Sydney and relocate to a much nicer city where you can live by the water or close to the beach with beautiful weather all year round, and quit my full-time job. Let me give you an example of a $1.5 million-dollar home in another city such as the Gold Coast in Australia. It is Australia’s largest non-capital city and a beautiful beachside city where you can still buy waterfront mansions for $1.5 million dollars that are luxurious and beautiful compared to what $1.5 million dollars will get you in Sydney. In fact, it would cost you around $5 to $6 million or more in Sydney to have a home by the water that’s luxurious. So, what we’re going to do with this $1.5 million home by the water on the Gold Coast is, we’re going to download the Airbnb app and we are going to put it on Airbnb. A home like this on Airbnb rented out part time would generate around $150,000 per annum if done properly. However, most of the time it will be booked on a Friday and Saturday night, which are most popular on Airbnb and also during school holidays and Christmas holidays.
“That means, you could live in your house most the time and on weekends when your house is booked, you can simply do one of two things. You would be effectively paid to go and stay in a luxury hotel, which on the Gold Coast are around $200 a night. Alternately, in many homes you have a backyard and you could put in a granny flat where you could reside during the nights you book the rest of your property on Airbnb. Also, in many houses it’s quite easy to create a section as guest quarters. Therefore, you can live in a part of the house while the majority of your house is rented on Airbnb. Imagine this house has a $1 million mortgage. You can potentially get a home loan rate of 3.7%. It would cost you $37,000 a year in interest, leaving you $113,000 after rates electricity etc. After expenses such as rates and electricity, which you have to pay anyhow, it’s netting you about $93,000 per annum. Many Australians could actually retire off that. The one adjustment to using 21st century technology and using a platform such as Airbnb, relocating to a city with a much better lifestyle and selling a home in Sydney that’s not that nice compared to a luxury waterside mansion on the Gold Coast, you could effectively attain financial freedom.
“However, now you also have a lot of free time on your hands. Therefore, if you wanted to supplement your income you could use another technology platform such as Uber to turn your existing car into a business where you can earn significant revenue part time by driving for Uber. There are people on the Gold Coast generating $1400 a week part time from Uber. This is just another backup form of income if ever needed other than a full-time job in case you want peace of mind to supplement your $93,000 Airbnb income. Then you have plenty of free time on your hands to dedicate to learning about another technology platform known as Amazon where you could learn how to acquire products from overseas and sell them on Amazon. You may not be aware that Amazon will store the product for you, sourced say from China. Amazon warehouse and ship them to your customer and take a fee.
“It’s a perfect largely passive global business”, said McIntyre.
McIntyre went on to explain:
“I have a friend who generates from just one of his products $55,000 USD a month in which he has a 50% profit margin. Even though that’s a very good example, you could at least earn a few thousand dollars a month. It’s all additional income. In the meantime, as you develop your skills, you could obviously grow an Amazon business further.
“However, what if you want even more forms of income to save you from ever having to go back to a full-time job that you dreaded in Sydney?
“You can take advantage of other technology platforms such as Airtasker and do part time jobs for a decent amount of money offering your skill set. Now of course this technology platform won’t suit everyone, but there would be many Australians right now that don’t like having to commute to work every day doing a job they particularly don’t like simply to pay off the mortgage on a house they don’t particularly want. Whereby with this strategy, just Airbnb alone could enable a couple to relocate from Sydney, give up stressful time consuming jobs and have the time to spend with their family, go to the beach and travel the world knowing they have backup incomes they can generate by using 21st-century technology. I believe the future will enable an increasing number of people to be able to leave a full-time job and move to working part time or not working at all and focus on what their passions are, or spending more time with their family. After all, I think that offers a better quality of life. So, the good news is, it is possible- thanks to technology, which can immediately improve your lifestyle in a small way or a big way simply by:
- Being aware of new technology and
- Being willing to execute that technology.
Such a lifestyle used to be a pipe dream, but now it’s a reality”, said McIntyre.
Here is a typical $1.5 million AUD Sydney home:
Compare this to a $1.5 million dollar Gold Coast waterfront home close to the beach:
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