Tuesday, March 20, 2018

Conveyancer VS Solicitor – What’s the difference?

What’s the difference between a conveyancer and solicitor?

Now that’s a common question we’re often asked, and rightly so. real-estate-property

It can be confusing when you’re offered what seems to be the same service by two different professionals.

Basically, every time a property changes hands the process is called conveyancing, and conveyancing can be done by either a solicitor or a conveyancer.

Before you start the conveyancing process it’s important that you understand the differences so you can make an informed decision that suits your risk level and your budget.

To help you do that we’ve put together some information which should make the choice a little easier.

Conveyancers vs Solicitorslegal2

Generally conveyancers have detailed knowledge in one area of law, being property law.

Solicitors on the other hand have specific knowledge about property law but also broader knowledge of the law in general.

This means that a solicitor can advise their client not only on all aspects of a conveyance, but also on issues that might relate to the conveyance, such as the tax implications of a property transaction, or how the sale of a house might impact their client’s divorce proceedings.

This difference in knowledge and experience is what commonly creates a price difference between conveyancers and solicitors.

Budgetary considerations

The biggest reason people hire a conveyancer over a solicitor is because hiring a conveyancer is often cheaper


Conveyancers can usually be hired for around $500-$600 plus disbursements, whereas a solicitor may charge $1000 – $1100 plus disbursements.

So it’s possible that hiring a conveyancer over a solicitor could create a saving in the vicinity of about $500.

Hiring a conveyancer may therefore be perfectly suitable should the property value be low, the budget tight or the transaction straightforward.

Don’t forget though that for conveyancers to offer a low price they often have to take on a lot of files to make a profit, so you may not get the same level of service as you would from a solicitor.

When making the choice, consider how important the $500 saving is to you in the context of the transaction.

Complexity of the transaction

It is important to bare in mind how complex the property transaction is likely to be.

The more complex the transaction, the more important it will be to ensure any technical issues, uncertainties or problems that arise can be dealt with swiftly.

If you’ve hired a conveyancer and something goes wrong, they’ll often need to send you off to see a lawyer, in which case you’ll probably end up paying more than you would have had you hired a lawyer to begin with.

The advantage of hiring a solicitor to do your conveyancing is they have extensive legal knowledge in most areas of law, so they’ll be on hand to quickly solve any legal issues that arise during the course of the transaction.

Examples where a transaction is at risk of becoming complicated include off the plan purchases or when a plan of subdivision is required.

When should I hire a conveyancer or solicitor?law-school

Whether you choose to hire a conveyancer or a solicitor, it is important to hire them at the outset of your transaction.

If you’re selling your property, you need to hire someone when you’ve decided to sell as it can take some time to draft the Contract of Sale and prepare the Vendor’s Statement.

If you’re buying a property, hiring someone before you sign any paperwork is always preferable.

Before bidding or making an offer to buy a house it is advisable that your conveyancer or solicitor reviews the Contract of Sale so they can point out any intricacies about the property and potentially negotiate on your behalf for contract terms that would be favourable to you.

Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children

When I travel the country speaking to high school and college students about exactly what they need to do to become financially successful in life I always begin my presentation by asking three questions:

“How many want to be financially successful in life?”

“How many think they will be financially successful in life?”

Almost every time I ask the first two questions every hand rises in the air.

Then I ask the magic third question:

“How many have taken a course in school on how to be financially successful in life?”

Not one hand rises in the air, ever. money parent

Clearly every student wants to be successful and thinks they will be successful but none have been taught by their parents or their school system how to be financially successful in life.

Not only are there no courses on basic financial success principles but there are no structured courses teaching basic financial literacy.

We are raising our children to be financially illiterate and to fail in life.

Is it any wonder that most Americans live paycheck to paycheck?

That most Americans accumulate more debt than assets?

That many Americans lose their homes when they lose their job?

Is it any wonder that most Americans cannot afford college for their children and that student loan debt is now the largest type of consumer debt? money

What’s worse is what our children are being taught by their parents, the school system, politicians and the national media.

They are teaching our children that the wealthy are corrupt, greedy, have too much wealth and that this wealth needs to be redistributed.

What kind of a message do you think that sends to America’s future generation?

It is teaching them that seeking financial success is a bad and evil thing.

Here are some statistics from my five-year study on the daily habits that separate the wealthy from the poor?

  1. 72% of the wealthy know their credit score vs. 5% of the poor.
  2. 6% of the wealthy play the lottery vs. 77% of the poor.
  3. 80% of the wealthy are focused on at least one goal vs. 12% of the poor.
  4. 62% of the wealthy floss their teeth every day vs. 16% of the poor.  
  5. 21% of the wealthy are overweight by 30 pounds or more vs. 66% of the poor.
  6. 63% of the wealthy spend less than 1 hour per day on recreational Internet use. 74% of the poor spend more than an hour a day in the Internet.
  7. 83% of the wealthy attend back to school night for their kids vs. 13% of the poor.
  8. 29% of the wealthy had one or more children who made the honor roll vs. 4% of the poor.
  9. 63% of wealthy listen to audio books during their commute vs. 5% of the poor.
  10. 67% of the wealthy watch less than 1 hour of TV per day vs 23% of the poor.
  11. 9% of the wealthy watch reality TV shows vs. 78% of the poor.
  12. 73% of the wealthy were taught the 80/20 rule vs. 5% of the poor (live off 80% save 20%).
  13. 79% of the wealthy network 5 hours or more per month vs. 16% of the poor.
  14. 8% of the wealthy believe wealth comes from random good luck vs. 79% of the poor.
  15. 79% of the wealthy believe they are responsible for their financial circumstances. 82% of the poor believe they are victims and not responsible for their poverty.

The fact is the poor are poor because they have too many Poverty Habits and too few Rich Habits.

The best parents teach their children good habits that lead to success and the worst parents teach their kids bad habits that lead to poverty.

We don’t have a wealth gap in this country we have a parent gap.

We don’t have income inequality, we have parent inequality.

Parents and our schools need to work together to instil good daily success habits.

They need to be teaching children specific Rich Habits that lead to success.

Here are some examples:

  • Limit TV, social media, video games and cell phone use to no more than one hour a day. iphone-410311_1280
  • Require that children read one non-fiction book a week and write a one page summary of what they learned for their parents to review.
  • Require children to aerobically exercise 20 – 30 minutes a day.
  • Limit junk food to no more than 300 calories a day.
  • Teach children to dream and to pursue their dreams. Have them write a script of their ideal, future life.
  • Require that children set monthly, annual and long-term goals.
  • Require working age children to work or volunteer at least ten hours a week.
  • Require that children save at least 25% of their earnings or the monetary gifts they receive.
  • Teach children the importance of calling family, friends, teachers, coaches, etc, on their birthday
  • Teach children the importance of calling family, friends, teachers, coaches, etc. when anything good or bad happens in their lives. Examples include births, deaths, awards, illnesses, etc.
  • Teach children to send thank you cards to individuals who helped them in any way. kids money learn teach coin child lesson school piggy bank mum mother parent
  • Reassure children that mistakes are good and not bad. Children need to understand that the very foundation of success is built upon the lessons we learn from our mistakes.
  • Discipline children when they lose their temper so they understand the consequence of not controlling this very costly emotion. Anger is the most costly emotion. It gets people fired, divorced and destroys relationships.
  • Teach children that the pursuit of financial success is a good thing.
  • Children need to learn how to manage money. Open up a checking account or savings account for children and force them to use their savings to buy the things they want. This teaches children that they are not entitled to anything. It teaches them that they have to work for the things they want in life, like cell phones, computers, fashionable clothes, video games, etc.
  • Require children to participate in at least one non-sports-related extracurricular group at school or outside of school.
  • Parents and children need to set aside at least an hour a day to talk to one another. Not on Facebook, not on the cell phone, but face to face. The only quality time is quantity time.
  • Teach children how to manage their time. Teach them how to create a daily “to do” list. They can put their “to-do” list on their bedroom door so parents can check it each day.

Obviously, it is not possible to follow every Rich Habit recommendation I listed above.

From my research, I learned that all it takes is one or two Rich Habits to completely transform a life.

The reading habit, on its own, can set your children up for career success. child kid

The savings habit, on its own, can set your children up to be financially independent.

The exercise habit, on its own, can set your children up for a long, healthy life.

The happy birthday or life event calls, on their own, can set your children up to forge strong relationships.

Pick just two habits to teach you kids and stay on top of them for six months.

After six months the habits should stick.


My top insights into accelerated wealth creation

Today I wanted to share my top wealth creating insights from our premier property training event – our 5 day Wealth Retreat.

You see… farm seed soil grow wealth

As I start preparing the curriculum for this year’s event that will be held on the Gold Coast in June this year, I’ve been reviewing my notes from last year and spending a lot of time chatting with past attendees of Wealth Retreat.

As I spoke to many of them I was blown away and humbled by the feedback as they explained how Wealth Retreat had changed the way they handle their investments, business and in fact many aspects of their life and how it was the best event they had ever attended.

Now that’s high praise indeed from people who are already successful property investors, business people and entrepreneurs, and I don’t take it for granted.

You can find out more about Wealth Retreat by clicking here.

O.K., here is the first insight …

1. To become financially independent you need to treat your property investments like a business

Over the last few years it became very obvious to me was that those investors who treated their property investments like a business were the ones that managed to develop financial independence from their properties. 

And those that didn’t, seemed to be working for their properties rather than the other way around.

I’m sure you’ve read that most property investors don’t get past their first or second property and that almost half of all property investors sell up in the first 5 years. umbrella coverage home rich

When you speak to them they’ll tell you “property doesn’t work.”

Some investors have a portfolio of negatively geared properties but have to keep supporting their cash flow shortfall.

Others can’t seem to get the funding to get past their second or third property.

And others bought positive cash flow properties but the little cash they get (if any) doesn’t alter their lifestyle.

On the other hand, a small group of Australian investors treat their properties like a business.

They are the CEO of their business and realise that it’s not how much money you make that matters, but how hard that money works for you and how much you keep that matters.

They have a plan including a property plan, a finance plan, a tax plan and an asset protection plan and are surrounded by a good team of specialists.

If you want to grow your own significant property investment business, one that could one day replace your personal exertion income, then you should really consider joining us at Wealth Retreat 2016.

Because that’s exactly what Wealth Retreat is about.

We give you a blue print to build your own property investment and then give you a tool box full of Power Tools to help you build it.

Find out more about Wealth Retreat by clicking here and register your interest online to find out more or email Jo Fitt jfitt@metropole.com.au and she’ll explain everything.

2. Alone you are vulnerable; connected we are strong

It really struck me how easy it is to fall back into old habits and let negative outside influences dramatically impact our mindset and financial results when we are on our own.

Several people I spoke with candidly shared how they had pulled back and isolated themselves after suffering some investment problems and financing issues over the last few years, and how that isolation cost them so much more.

I can relate to this.

Many investors think they have to do it all themselves or learn it all themselves.puzzle team

Partly because they think they know better than others or maybe it’s because they are not hanging around the right people – supportive, encouraging people.

And these get harder to find, the more successful you are.

But we cannot be our best selves in isolation from the world.

We need other people.

The key is making sure we’re spending time with people who inspire, empower, and encourage us.

The next two lessons really emphasize this point.

3. Your peer group is contagious

One of the things that struck me on the first night at Wealth Retreat, when we all got together for a special surprise event (the details of which I can’t reveal here, otherwise it would spoil the surprise for the attendees) was how quickly people connected with each other.

Have you ever had that experience?

Where you meet a group of people and feel like you’ve known each other for years?team work help puzzle group peer team

May I ask you a direct question?

It’s going to be a bit blunt, but I’m not sure how to “finesse” it so here goes:

  • Will your current peer group empower you to reach your deepest dreams goals and your life’s purpose?
  • Will they hold you accountable to a high enough standard or will they let you slip back into your old comfort zone?
  • Will they feed your ideas and give you input to help you overcome challenges you face along the way?
  • Will they support you when you’re having a tough moment?
  • Do they inspire you to keep performing at your highest and best capabilities?

If not, what are you doing about changing that?

It’s ultimately up to you to find and create the peer group that will help you live the life you want to live.

4. After a “Loss” we tend to go back to what we knew

Many of the investors and business people I have spoken with recently have suffered a set back over the last few years.

Some in real estate, others in the share market and some in their businesses. 

And we’ve had some interesting discussions putting this into perspective and clarifying the useful lessons to take from our experiences to help us business data successmove forward.

One of the most important insights that I want to share is that when most people suffer a “loss” financially, their natural tendency is to pull back and isolate.

Some are fearful… others embarrassed…

But isolation only makes things worse.

You need to accurately assess the situation, learn your lessons and move forward.

Beating yourself up is of no benefit.

This is why your peer group and mastermind team is so essential.

We are moving into a new financial era – a time of amazing opportunities and some real risks.

To succeed in this environment we need the support, insights and perspective of a trusted group of advisers and peers.

Which brings me to my next point…

5. Your Mastermind Team

Apart from the opportunity for participants at Wealth Retreat 2017 to have one on one sessions with our expert faculty, one of the exciting parts of Wealth Retreat this year will be the small group break out sessions.

This is a masterminding technique where you ask a focused power question to your mastermind group and they have time to brainstorm as many possible answers to your question as possible.

If you are already a property investor, a business person or entrepreneur please click here to find out about Wealth Retreat and register your interest online and join us at Australia’s ultimate learning and networking event for investors and entrepreneurs.

Or ring Jo Fitt on 03 9591 8888 or email her jfitt@metropole.com.au to register your interest and find out more.

6. Real Wealth Is What You Give

The people who come to Wealth Retreat are divided into three groups.

Firstly about 15% – 20% of the attendees have been before.life directions

Some are coming for the second, third or fourth time.

You may ask why do they come back if they are successful. I could say they are successful because they come back.

The second group of attendees are very high net worth individuals.

They come to grow and nurture their property portfolios.

Then the bulk of attendees are experienced property investors with between 2 and 10 properties, who are looking to expand their network and super-size their investing and learn skills and techniques that they would not find elsewhere to enable them to build a property investment business.

Others are business people, entrepreneurs and share traders.

But don’t count yourself out from coming…

Every year a group of aspiring investors join us and get the type of information that propels them ahead – the type of information I would have loved to have when I started out.
This year we will be having special sessions at Wealth Retreat to assist investors with their biggest challenges including finance and empowering them with proven techniques for our changing markets. 36308275 - businessman thinking on consulting scheme on a white background

Many of the attendees want to learn how to step out of the world of being paid by the hour and into the world of building their own property investment business.

In fact many past graduates of Wealth Retreat left their jobs to pursue their passions. 

If this interests you register your interest on line by clicking here, or better still email or call  Jo Fitt now on 03 9591 8888, jfitt@metropole.com.au to find out more.

Wealth Retreat works so well because each of these groups of people adds something essential to the mix.

But when I observe the most successful participants from Wealth Retreat over time I notice that those people who have “made it” financially all have moved to a place that the money isn’t what motivates them. 

Sure they enjoy the money, but it is not their main driver.

Let me explain… money is a sufficiency need.

Once you have enough of it, it ceases to be important.

So what is it beyond the money that pushes and prods and sparks and motivates you to perform at your best and to build and dream and dare? 

When I asked people at Wealth Retreat what drove them here are their top two answers:

Number One: Making a differenceFamilies by state

To touch the lives of other people.

They want to give back to people and causes that are so much bigger than they themselves are.

They believe that as they receive they need to “pay it forward” to the next generation of business owners or investors.

How are you paying it forward?

Number Two: To Care..

To care for their friends and family and provide an amazing lifestyle and quality of life for them, and especially to have the time to be with them.

I hope you’ve found these insights from Wealth Retreat helped give you some ideas about your own wealth creation.

Have you ever wished you could join us at Wealth Retreat?

While the numbers are limited (on purpose) I urge you to call  Jo Fitt on 03 9591 8888 and find out more and see if you qualify to join us on the Gold Coast on June 9th to 13th 2018.


Or email her at jfitt@metropole.com.au to get the process started.

We have a very limited number of spaces for the event (we’ve chosen a special room size on person to enhance the intimate nature of the event) and with over 15% of spots already taken by return attende it’s only going to get harder and harder to get in later.

If you would like to find out a little more check out our website by clicking here.

If you’re ready to commit to playing at a higher level, to spending 5 days with a select handful of other doers in an environment that will challenge and push you to even higher levels of achievement and success, then please call Jo on 03 9591 8888 or email her at jfitt@metropole.com.au and ask her to explain a bit more about Wealth Retreat and get on the interview list  – I’m keen to chat with you

Monday, March 19, 2018

Why the RBA needs to talk about future interest-rate policy

[Podcast] What’s the right property investment strategy for this new phase of the cycle | The Big Difference between Winners and Losers

What’s the right investment strategy now that we’ve moved to the next stage of the property cycle?

When it comes to property investing, you will often hear two conflicting philosophies. 17034015_l

Some say you should invest for capital growth, and others say you should invest for positive cash flow.

Now that we are in a period where capital growth is going to be lower, more investors are wondering if they should change their investment strategy and look for cash flow positive properties.

This is exactly what we discuss in today’s show.

The first half of the show we talk about finding the right investment strategy, and in the second half we talk about finding the right property.

So whether you’re a beginning investor or a seasoned pro, there’s something for you.

What’s the Right Property Investment Strategy for This New Phase of the Cycle:

  1. More beginning investors tend to invest in cash flow positive properties. On the other hand, successful investors – those who’ve built a substantial asset base grow their portfolio through leveraging the capital growth of their investments.  light-bulb-idea-leader-think-smart-clever-property-house
  2. While cash flow positive properties allow you to get short term income, they will never allow you to accumulate enough equity and assets to become financially free.
  3. The few extra dollars a week in cash flow that you might receive isn’t going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property.  And the lack of rental growth is going to hamper your ability to service more debts.
  4. When interest rates rise, and the will sooner rather than later, a cash flow positive property can become cash flow negative – an you lose out because you don’t have the cash flow and you don’t have the capital growth.
  5. Investors should focus on building their asset base. Asset growth first and then cash flow.
  6. You should only buy properties with a high land to asset ratio.
  7. You have to get your investment phases in the right order. Businessman Standing Among Chess Pieces Looks Through Binoculars
    • The first phase is the accumulation phase. This is where you build your net worth and asset base. You can speed things up by manufacturing capital growth through renovations.
    • The next phase is the transition phase. This is where you lower your loan-to-value ratio after you have built an asset base. Then eventually you can.
    • Live off the cash machine of your investment property portfolio
  8. When you retire the majority of your assets will be the capital growth of your property.
  9. Setup the correct loan structures before you buy to cover shortfalls for two or three years.
  10. You need to invest in high quality “investment grade” properties.

The Big Difference Between Winners and Losers:

  1. Most successful investors realize that success is a mindset. People fall into two groups those who make excuses and those who don’t. Winners stop themselves from making excuses, and they get the job done.

The Right Property for This New Phase of the Cycle:

  1. We are now in for a period of lower growth for a number of years.
  2. There is no such thing as the perfect investment.
  3. Look for an investment that is strong and stable
    • Strong means you’ll get capital appreciation at wealth producing rates of return. cycle
    • Stable means your asset won’t fluctuate in price much.
  4. Look for properties with
    • steady cash flow.
    • Liquidity either through selling or borrowing against the investment.
    • Easy management.
    • A hedge against inflation.
    • An investment with good tax benefits.
  5. I’d take stability in my investments over liquidity.
  6. Put your money into a “how to” investment such as an established capital city property.

Links and resources:

Some of our favourite show quotes:

“I tend to see more successful investors, those who’ve built a substantial asset base, grow their portfolio through leveraging the capital growth of their investments.” Michael Yardney property investment

“If you buy in a low capital growth area, your rents won’t increase as much as properties bought in a high capital growth area.” Michael Yardney

“The few extra dollars a week in cash flow that you might receive isn’t going to make a difference in your lifestyle, but the lack of capital growth is going to hamper your ability to get the deposit for your next property. The lack of rental growth is going to hamper your ability to service more debts.” Michael Yardney

Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Sunday, March 18, 2018

Buyers are liars and sellers are swindlers: True or false?

I’ve been in the real estate industry a very long time – at least, long enough to know how the game works.

Purchasing property is a game made up of two teams: buyers and sellers. 25151372_l

Sitting between them is usually the umpire, otherwise known as the real estate agent.

For some people, real estate agents rank in their Top 10 Most Untrustworthy People, up there with car salespeople and cold-callers offering free iPads along with a too-good-to-be-true phone contract.

Their job is to be the referee between the buyer and the seller – finding the perfect property for the buyer whilst working to get the best price for the seller – but they’re often regarded with more than a small measure of caution.


Because their motives and ethics are not always clear.  


That said, there are rules to the game that can help you to navigate the process of buying real estate.

The only downside is that unfortunately, not everyone is aware of them all.

Many buyers don’t understand that real estate agents have a legally binding contract with the seller, not the buyer.

Their job (and their moral obligation) is to get the best price for the property to fulfil their contract.

I’ll say this again, because it’s vitally important: a real estate agent’s ultimate interest and loyalty lies with the seller, because they have been contracted to sell the property for that owner.

Once an agent has secured the listing to sell a property, they must make every attempt to sell it for the best price they possibly can.

How do they sell it for the best price?

By showing the property to potential buyers who are a good fit for the home.

Sure the prospective purchaser is also a customer who they hope will buy the property, but their interest is first and foremost in getting the best outcome for the seller, who pays their commission.

The misconception that a real estate agent is impartial and is working just as hard to land the buyer a great deal as they are on selling a property has left a sour taste in the mouths of many buyers.

They walk away from the bidding process feeling hard done by and frustrated at missing out. Discussion with a real estate agent

And more often than not, the blame falls squarely on the ‘greedy’ real estate agent.

In turn, this has led to a largely false impression that agents are untrustworthy and dishonest.

The truth is that in the majority of cases, they will work with both parties to find a home for the buyer and a sale for the seller.

And while they must fulfil their contract with the seller to assist in selling their property for the best price possible in the prevailing market, from a pure perspective of logistics, they need buyers in order to do their job.

However, the snowball effect of this growing mistrust has led to the birth of a term known commonly amongst real estate agents, but not widely known to the public.

This saying is…

Buyers are liars

The term is a little misleading (and probably offensive, if you don’t know what it really means!) so let me explain. property

When buyers are looking to purchase a property, they usually have a checklist of criteria they’d like to tick off for their ideal purchase.

Whether they’re shopping for their own home or an investment, they generally know their preferred locality, number of bedrooms, land size and required features and fittings.

They’re also being guided by their own budget, meaning they have a maximum purchase price in mind.

Real estate agents do their best to show buyers properties that fulfil these criteria.

But what agents tend to see is buyers who change their minds on their budget and property needs continuously, or who hold back telling them what they really want or their true budget, leaving the agent confused about what the buyer really wants.

Thus, they come to the conclusion that “buyers are liars”.

Why are buyers behaving this way?

The surge in suspicion of real estate agents has led to buyers feeling that they can’t be honest and upfront when searching for a property.

The word ‘liars’ is a little erroneous, but it’s a catchy little rhyme.

And it does express how real estate salespeople feel when they can’t point a buyer to the right property, because the buyer is playing their cards too close to their chest.

What’s not generally known is that the real estate industry is heavily regulated and frequently audited.

These laws have been instituted as a result of the perception that agents are ‘swindling’ buyers and using unethical tactics.30307218_l

And the good news is that they ensure that agents are all too aware of the need to keep things above board and legal.

If you’re looking to purchase property, for yourself or as an investment, a good way to circumnavigate the confusion is to appoint a buyer’s agent.

They kick the goals for you, finding the right properties and taking care of the negotiations all the way through to the final settlement.

They act on your behalf and because they are expert players in the real estate game, they can help you find a good deal in the market.

I’ve found the best buyers agents are ex selling agents, so they know how to deal with them and level the playing field.


As signs point to softer growth conditions for Australian property over the coming months, independent professional advice and careful consideration will be as important as ever in navigating Australia’s varied market conditions. 


If you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.

Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.

Please click here to organise a time for a chat. Or call us on 1300 20 30 30.

When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.

4 Ways to Use Leverage to Build Your Wealth

Have you ever wondered why it’s easier for people who have money to make more of it? lose saving

I mean, why is it that the second and the third million are so much easier to earn than the first million?

Do you want to know what the biggest difference is between how the wealthy people build wealth and how the poor and middle income people do it?

It’s how they use leverage and I’m not just talking about borrowing money.

There are at least 4 ways successful investors use leverage.

Let’s look at them…

1. Money

Firstly there is the leverage that you probably first thought of. 


One of the biggest differences between how wealthy people and the average Australian go about building wealth isn’t how they invest the money that they have… it’s how they leverage and use the money they don’t have that makes them wealthy.

You see…the average Australian rarely uses leverage in any focused or strategic way, partly because they are afraid of taking on debt.

If they do build any wealth, they do it mostly by scrimping and saving the money they have, and using any “left over” income to slowly build their “nest egg.”

On the other hand, the wealthy investor has mastered the art of using money that they don’t have, to build their wealth.

They use borrowed money to magnify their investment activities and enjoy enhanced, accelerated returns.

They take on more debt and borrow, gear or leverage their assets to own even more assets.

Yet the average Australian is frightened of taking on more debt. financial-debt

In fact many believe they must reduce their debt and pay off their home before they start looking at investing.

This is a huge difference in mindset.

When you have a more sophisticated understanding of the rules of using leverage benefits, you are able to literally use it to take your wealth building to the next level.

When I look at an investment, I don’t ask myself, “Can I afford this property?”

Instead I ask myself, “How can I strategically use leverage to help pay for this investment in a way that enhances my overall return without taking on more risk?”

Leverage, the ability to generate a magnified result from a specific asset, is normally thought of as “borrowing” money.

Yet this is only one of the ways you can use leverage benefits to build your wealth.

2. Relationships

You can also leverage your relationships or your network.

Successful investors build a great team around them.   Action 2277292 1920

They realise they don’t have to be an expert in every field if they develop a good network.

This network includes a good finance broker, a smart solicitor, a property savvy accountant and a knowledgeable property strategist.

Successful investors also have one or two mentors and they belong to a mastermind group.

This is a group of like-minded people who encourage each other and act as “unreasonable friends” helping each other push forward towards their individual goals.

Having a great network around you enables you to leverage off other people’s expertise.

I often say “if you are the smartest person in your tem you are in trouble.”

How can you leverage your relationships?

In this world it’s not what you know and it’s not even who you know… it’s who who you know knows.

That wasn’t a typo.

Your network of relationships is critical to growing your wealth, not just for what they themselves know, but often for the people they know who could also help you.

3. Time  dream-clock-time-business-man-life-motivation-happy-dream

Also successful investors have learned how to leverage their time.

Many beginning investors waste so much time trying to do everything themselves.

You will find them chasing late rental payments, doing minor maintenance and negotiating rent reviews with their tenants.

Successful investors value their time and have learned to leverage their time putting it to its highest and best use.

They do this by outsourcing these minor tasks to their property manager and to other contractors.

Instead they use their time to find learn more, develop their relationships or find more deals.

4. Your mind

One of the greatest points of leverage is leveraging your “mind.” Successful property investors just think differently to the average person.

The not so rich have a different way of thinking – a different “reality”.

To put it simply your reality is what you think is real in other words your perception is your reality.

What stops many people becoming successful investors isn’t what they know or don’t know.

It’s what they think they know that isn’t so that stops them moving forward.

They say things like:  45437255_l

  • I can’t afford that
  • I can’t do that
  • I already know that
  • That’s wrong
  • I tried it once and it didn’t work
  • That’s impossible – you can’t do that.

If you want to become truly wealthy you will need to open your mind to new ideas and develop the skills to take on the possibilities greater than your current abilities.

It’s just too hard to become wealthy from a perception or reality (because your thoughts – your perceptions become your reality) of lack and limitation.

I remember Robert Kiyosaki saying in one of his Rich Dad Poor Dad books that a cynic’s reality does not let anything new in, while a fool’s reality does not have the ability to keep foolish ideas out.

While these four main leverage points can help make you a successful property investor, when you think about it, you have so much more you can leverage.

You can also leverage your skills, your creativity, your intellectual property, your net worth, and your reputation to build wealth.

The list goes on and on.

Stretch your mind to look for opportunities to leverage in new ways.

How will you build your wealth? 


If you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.

Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.

Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.

Please click here to organise a time for a chat. Or call us on 1300 20 30 30.

When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.