If you have been thinking of buying a house, you probably have found yourself at these crossroads: do I buy a home or an investment?
This can be an emotionally-charged decision because most of us were raised with the Australian Dream – a house of our own. While the standard quarter-acre block is now a very distant memory, we still crave a plot of land that’s firmly marked as HOME.
But the problem is that this dream is a big fat lie. Why? Because everything you learned about money, and financial freedom is wrong. And it’s held Australians back from financial freedom for generations.
Let me explain.
You probably have heard people say if you want to get rich, you should;
– Work for the government
– Work for the bank
– Work in a great company
– Work nine to five
– Work hard
– Put money in super
– Save more
– Pay your mortgage
But this advice is 100% WRONG.
It’s what the majority of the middle class are doing and hoping to make money. But this strategy only works for the corporate and big companies.
They don’t want you to become financially free to live life on your own terms! They want you to be good little worker bees to keep helping them generate THEIR wealth.
And they don’t give a rat’s ass if you end up working your entire life to retire at 65 with a pension that barely gets you by.
Screw that, I say!
How To Screw The System (That’s Stacked Against You)
There are millions of people out there working very hard in a nine to five job and putting all their earnings in the bank. Unfortunately, these people accuse me of teaching people to do risky investments with their hard-earned money. That’s simply not true.
My method for investing is very focused on doing your due diligence and ensuring that your assets are protected. But they’ve drunk the Kool-Aid and will continue to be good little worker bees. Good luck to them.
The thing is, the old-school method of buying a house then spending the rest of your life paying it off simply doesn’t work if you are looking to build wealth not just through assets, but also have the cash-flow to enjoy your life!
So buying a family home shouldn’t be the first thing to do. Your first purchase should be an investment.
Rent where you want to live, build your property portfolio, and THEN buy your dream house if you wish with the passive income you’re receiving from your investments.
The family home – the one you buy and live in – is not an asset… it’s a liability. It costs you money. So if you don’t have the cashflow to keep pouring into the enormous debt of your mortgage, you’ll live to work off your debt.
That’s no way to live! I want to enjoy my life now, not end up finally owning my home at 70 but with no cashflow to do anything with my life.
But we’re trained from the time we’re kids to buy the family home first. Why? Because it keeps you in the worker bee trap!
Here’s another way this strategy stings you – when you are buying an owner-occupier home, you are using post-tax dollars. That means your employer, the government and the ATO have all had their hands in your pay packet and taken their share of tax and superannuation, and you’re left with the remains (about 50% of your actual income).
Then you pour what you can from that left-over 50% into a 30-year mortgage! Now the bank’s got its hand in your pay packet too!
And after everyone’s taken their cut, what are you left to live on? Not much! And so the worker bee trap digs tighter…
There is a much, much better way…
How The Rich Get Richer
As they say, the only two certainties in life are death and taxes. But while there’s not much you can do to avoid death if your number’s up… there’s more you can do to reduce your tax than you might think.
But not many average Aussies know how to do this. To save on tax, they spend more money instead! To me this is crazy – you want to lose more money up front so you can lose less at the end of the financial year?
What you need to do instead is to lose money on paper and make money in real life. And that’s what the rich do. The rich and successful property investors use pretax dollars – before everyone else can get their hands on it.
So when it comes to tax time, they’ve already got huge deductions without actually spending a cent of extra money to ‘lose’ it. You can get up to 80K tax reduction per property if you do it right.
In the last ten years, I have gotten over $2 million in tax reductions. But I have only lost my money on paper. The government has paid me this money which is completely legal and ethical.
Chasing the NEW Australian Dream
I’m not saying that you shouldn’t pursue the Australian Dream of owning property. Quite the opposite! What I am saying is that the way we’re taught to do it is wrong… but when you do it the smarter way, it’s entirely possible to realise that dream.
I used to be stuck in the rat race myself, so I know how it feels to chase every damn dollar only to watch your paycheck get eaten away by tax, superannuation, bills, and the cost of living in general.
I wasn’t born with a silver spoon in my mouth – I watched my parents scrimp and save for every dollar they ever earned. It wasn’t until I started unlearning everything I had learned about money, and started to watch what the rich did to create wealth, that I started to build my own wealth.
And now I am rich, and I know the tricks. I want to show people how the rich do it, so they can do it too!
Because life is too precious to spend it worrying about money and living day-to-day… and it pisses me off that so many people are set up to fail simply because we get the wrong education growing up.
We have been brainwashed to think that the Australian dream is to own a home. But the NEW Australian dream is financial freedom.
Become A Freedom Fighter
If you’re interested in learning more about how to set yourself up to invest in property safely and with carefully mitigated risk, I’d love to help.
My Markoski Method is a tried and tested way to profitably invest in property while protecting your income and assets at the same time. It’s part of my BlackBelt coaching program that educates and coaches members to get their first, second, third and fourth property (and beyond).
We only work with a certain number of active members at a time, and we’re currently taking applications for the next round of new members.
If you’d like to find out more about the program, or see if we might be a good fit, get in touch with my property concierge Charmaine for a 15 minute ‘getting to know you’ call. On the no-pressure, no-obligation call, she’ll assess where you are now, and give her honest opinion if you’re in a position where we can help you build your portfolio.
Here’s the link to Charmaine’s calendar – book a convenient time to chat now.