Monday, June 26, 2017

10 Game-Changing Things You Don’t Know About Millionaires

We all have our opinions about millionaires and the rich.  Property News

I’d like to challenge some of those opinions and show you some things you might not know about millionaires.

It’s not about luck, fancy lifestyles or greed.

It’s about developing a mindset that sets you apart from the rest.

Here are 10 game-changers that you didn’t know about millionaires…

1. Millionaires are Hard Workers

During a survey by Spectrem, 94 percent of millionaires said that hard work was the number one factor in their success.

This could be in the form of literally building their businesses from the ground up, like Sam Walton and Walmart, or creating and acting upon new ideas everyday, like Steve Jobs and Apple.

How you can apply it: Hard work is a must if you want to be a millionaire.

You’ve got to accept that and be willing to get your hands dirty.

2. Most Millionaires are Self-Made 

Today, the amount of millionaires who inherited their wealth is around 18 percent and that number seems to be falling.

Most millionaires started out with very little and many were born into extreme poverty.

Some of the most popular and most impressive examples include Carl Icahn, Larry Page and Jeff Bezos.

How you can apply it: Don’t use another person’s inheritance as an excuse for why you can’t do it yourself.

Most millionaires made their money on their own; that means you can do the same if you put your mind to it.

3. Millionaires Want You to be a Millionaire

Millionaires understand that there is enough wealth for you to be rich too and it actually helps them in different ways.

It’s true, it’s not a battle, but more of a buddy system.

More millionaires means more business and enterprise and that helps everyone.

Robert Kiyosaki and Donald Trump even wrote a book called “Why We Want You to be Rich”.

How you can apply it: Become a millionaire.


I know, easier said than done, but this list is a great starting point for you to be on your way. Keep reading…

4. Millionaires are Not Jacks of All Trades

You’ve heard the phrase “Jack of all trades, master of none” right? light bulb idea leader think smart clever failure motivate thought

Well millionaires are quite the opposite.

It’s common for them to be masters of one, or possibly a few different things, but not many.

Millionaires figure out what they’re good at and what they’re passionate about, then they devote their life to it.

How you can apply it: Stop trying to master everything.

Figure out what your one thing is and devote everything you’ve got to it.

Master your one thing.

5. Millionaires Have Multiple Streams of Income

It’s not just about diversifying, it’s about creating more wealth through different avenues.

Warren Buffett owns more than one stock, just like Jeff Bezos owns more than one company.

Millionaires find their specialty and branch out.

It almost always takes multiple streams of income to truly become rich.

How you can apply it: Start your multiple streams now.

They may start small, but they don’t have to stay small.

Try different businesses and investing approaches, just makes sure you understand what you’re doing when you get started.

6. Millionaires Value Education

With the college dropout stories of Mark Zuckerberg (founder of Facebook) and Matt Mullenweg (founder of WordPress), it’s easy to discredit education, but when you consider that most millionaires have a minimum of a bachelors degree, it’s easy to see that these successful dropouts are the exception to the rule.  read-2007118_1920

The top 3 degrees for millionaires are engineering, business and economics.

As far as the super-rich, economics degrees seem to take the cake.

And remember, many of these college dropouts used the knowledge they learned in college to start their business in the first place.

How you can apply it: Get an education!

If you decide to dropout and become a self-made millionaire, more power to you, but getting started with an education will increase your chances for earning more money.

7. Most Millionaires Don’t Feel Rich

Generally, when you’re a millionaire, there are still thousands of people with more money than you, so millionaires don’t often think of themselves as “rich”.

We all tend to define success in our life by the next thing coming and millionaires are no different.

Just like you think you will be happy with that next promotion or that new car, millionaires usually think they would be considered rich when they hit the next million or a billion.

How you can apply it: We can all takeaway an important lesson here.

Be where you are now and be happy with it.

You are getting better, wealthier and smarter, but that doesn’t mean you have to wait until you hit the next level to enjoy it.

Enjoy your life now.

Right where you are.

8. Millionaires Don’t “Look” Rich

You probably see people all the time who drive brand new Escalades and live in mini-mansions, and they’re probably in debt up to the roof.

They might even be broke based on their income, versus their spending. motivation best things in life quote wise wisdom smart

The “keeping up with the Joneses syndrome” traps many people.

The Joneses are broke! Most millionaires live in conservative homes and drive cars that are a few years old.

They focus more on having money than having stuff.

How you can apply it: Never focus on what other people think.

Budget your money and invest wisely.

That’s the road to wealth.

Huge homes and fancy cars are quick roads to piles of debt.

The main takeaway here is: spend less than you make!

9. Millionaires Know They Can’t do it Alone

They may be self-made, but that doesn’t mean they did it alone.

Millionaires understand the value of making friends, networking and seeking help from experts when they need it.

Most millionaires report that they had a mentor along the way and that their mentor played a huge role in their success.

How you can apply it: If you want to do something big, you’re going to need help.

Becoming a millionaire is no different.

It’s important to reach out to others for advice and mentorship.

10. Millionaires Love to Shop…Differently

If you develop a habit of buying new clothes, cars and toys on a regular basis, you are developing a habit that will leave you broke.

Millionaires love to shop, but they shop differently.

They look for good deals on businesses and stocks, not new motorcycles and 1000 inch TVs.

They know the difference between assets and liabilities and they focus on the former rather than the latter.mind set rich money lesson think motivational learn teach money

How you can apply it: Shift your mindset to buying assets over liabilities.

One of the most important factors between the rich and poor is that rich people buy assets and poor people buy liabilities.

Shop like a rich person.

Today there are literally millions of millionaires across the globe.

Millionaires are different.

They are not the status quo, but being different may not mean what you thought it did.

These are all common characteristics of millionaires and even billionaires. Develop these traits and you’re on your way to becoming one.

I originally wrote this blog for LifeHack.  

Australian population clock strikes 24.5 million

Population growth picks upAustralia-people--300x182

It was only in February last year that we saw the Australian resident population clock pass 24 million.

Today, the population clock quietly ticks past 24,500,000.

The population clock presently assumes an increase of one person every one minute and 22 seconds.

So what does this mean for Australia median house prices? – Here’s how the number currently stand: 

Median housr price



The quarterly rate of population growth in Australia has picked up strongly again since bottoming out in early 2015.

In fact absolute population growth has been very strong since the mining boom, and has comfortably exceeded expectations before the Sydney Olympics.

Versus the 1999 ABS forecasts the population today is 2.95 million higher than was projected at that time.


That’s not to decry the forecasts, which must be always be wrong to some extent.

Rather this is to show the potential scale of the impact from the mining boom on the creaking infrastructure deficit.

In particular the growth in population of the capital cities has far outstripped anything that could have been expected two decades ago, and projections expect this trend towards urban densification to intensify.

What do the proposed changes to depreciation mean for you?

It’s been a couple of weeks since the federal budget announcement and since then we’ve had some time to review how the proposed changes relating to plant and equipment deductions will affect property investors.

Although we are not expecting the legislation to be finalised anytime soon, we have been talking with government with the aim of developing fair policy which covers all the necessary factors. tax depreciation

Many investors who have contacted us have asked how they will be affected.

The proposed changes won’t have any effect on properties that are already owned.

It will only affect owners who have exchanged contracts on an investment property after the 9th of May 2017.

Below are the key points to answer the questions investors have relating to the proposed changes.

Because the legislation is yet to be finalised, it is important to note that further changes may still take place.

What changes have been proposed?

  • Subsequent owners (those who purchase a second hand property) who exchange contracts after the 9th of May 2017 will not be able to claim depreciation on existing plant and equipment assets  
  • Although there is nothing specific mentioned about new properties, we expect that investors will be able to depreciate new plant and equipment assets within a new property as they have been previously. This will continue as normal
  • Any additional assets added to a property can be depreciated as normal.
  • Investors will still be eligible to claim qualifying capital works deductions, which are the deductions available on the structure of the building. This includes any additional capital works carried out by themselves or a previous owner. The Capital works deduction is available on properties that commenced construction after the 16th of September 1987
  • The budget notes advise that existing investments will be grandfathered. This means that any investor who exchanged contracts prior to the 9th of May 2017 can still claim plant and equipment depreciation per normal

What is plant and equipment?

  • These are the easily removable or mechanical assets found within an investment property
  • Some examples include air conditioners, hot water systems, smoke alarms, garbage bins, blinds and curtains
  • The Australian Taxation Office provides individual effective lives for plant and equipment which can be used to calculate the rate of depreciation over time

When will the changes take place?

  • The proposed new legislation will be in force from the 1st of July 2017

Who will be affected by this change?

  • Property investors who exchanged contracts to purchase a second hand residential property after 7:30pm on the 9th of May although the new rules won’t be applicable until after July 1 2017

How will these investors be affected?

  • These investors will only be able to claim plant and equipment depreciation on the assets they purchase and add to the property themselves
  • Investors who purchase a second hand property should still contact a specialist Quantity Surveyor to discuss the deductions they can claim for qualifying capital works deductions

Who won’t be affected by these proposed changes?

  • Owners of brand new residential properties who exchanged contracts both before and after the 9th of May  Property-Investment-Checklist-300x199
  • Residential property investors who exchanged contracts prior to the 9th of May 2017
  • Commercial property owners and their tenants can continue to use the existing rules. It is our understanding that the changes relate only to residential investment properties
  • Home owners are unaffected as only income producing properties will be impacted. However, those who decide to turn their primary place of residence into an investment property are only affected if their property was purchased after the 9th of May 2017. If a home owner purchased their property prior to the 9th of May 2017 and they decide later to rent it out, owners can use the pre-existing depreciation legislation

Depreciation scenario – before and after 9th of May

The following tables show the deductions an investor would receive for both a three year old and a ten year old residential property purchased for $600,000.

They examine the deductions an investor who exchanged contracts prior to the 9th of May could claim compared with the likely depreciation deductions they could claim if they exchanged contracts after the 9th of May under the proposed new legislation.

Depreciation reductions 1

Depreciation reductions 2

Should men or women control the investment purse strings?

When it comes time to make big financial decisions, research consistently shows that women more frequently hold the purse strings than men.

While this is a positive finding, as women tend to make smart, thoughtful, informed financial decisions, it also has the potential to drop an anchor in your investment portfolio’s growth.

If you’ve ever braved a session of retail shopping with a woman, you’ll know as well as I do that men shop very differently to women.

Click here to view the video on YouTube.

Men tend to approach a shopping task, no matter how big or small, in much the same manner: quickly, quietly and as painlessly as possible.

On the other hand women celebrate the experience.

Shopping for a new fridge, for instance, becomes more than a simple trip to Harvey Norman. bank-savings-house-couple-save-property-meeting-budget-300x199

It’s an epic research mission, both online and in-store complete with spreadsheets and continuous calculations to ensure the best possible deal is found.

In other words, women are generally more thorough, more measured and more detail-oriented than their male counterparts.

This is one of the key differences between men and women as investors, and when it comes to making astute property investing decisions, it often gives females the upper hand.

Now this is not just what some may say is my “biased” view; there are researchers far smarter than I who have come to the same conclusion, including behavioral finance researcher Nelli Oster, a director and investment strategist at

She points to three key reasons why women tend to make smarter financial decisions than men:

1. Women think long-term  

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“Women tend to focus more on longer-term, non-monetary goals,” Oster says. This is because women generally associate money with security, independence and the quality of their and their families’ lives.

It’s no wonder that a 2010 Boston Consulting Group Study found that female investors tend to focus on longer-horizon planning. Oster adds:

“Men, on the other hand, who tend to be more competitive and thrill-seeking by nature, often focus on the short-term track records of their portfolios,” 

2. Women take their time. lose saving

In a general sense, women tend to be thorough when making decisions, investing more time into the process than men. Oster says:

“Women also tend to be more patient as investors and consult their advisors before adjusting their portfolio positioning, whereas men are more prone to market timing impulses,”

3. Women seek help more. 

The old cliché about men failing to stop and ask for directions rings a little true here too. Oster says:

“To gather information, women often prefer group discussions to men’s more independent learning approach,”

Women are more receptive to financial research and advice, which means the financial decisions they do make are often guided by expertise, rather than gut instinct.

Should women hold all the financial cards?child children money learn teach rich poor lesson family budget

Now, in saying all of this, it may seem like I’m advocating a strategy whereby women should be making all the financial decisions.

My view is that when it comes time to engage in the property buying process – whether it’s making an offer, negotiating on price or settling on terms of the deal – the only way you can build your confidence is to actually get out there and do it.

This is where, in my opinion, some female investors may falter by potentially second-guessing and seeking to reassure themselves ‘one more time’ that the deal truly stacks up, they may sometimes end up standing in their own way.

As a result, sometimes women may actually risk missing out on great investment opportunities, because they might take too long to weigh up all the pros and cons.

So what’s the best approach?

As I see it, the best investment decisions are made by investors who are decisive, thorough and clear on what they want to accomplish.

Yes, it’s true that men can be impatient shoppers. women vs men

They are also more prone to attempt timing the market, a strategy that frequently ends in tears.

But, at the end of the day, they’re also generally action-oriented, decisive and often more willing to take a risk.

That’s why I believe a mix of both the male and female approaches are integral if you want to achieve long-term financial success as a property investor.

The feminine approach may allow you to build your wealth in a safe, steady and secure way: it ensures you cross all your t’s, dot all your i’s and research every inch of the deal before you proceed.

The masculine approach is based more on instinct, and allows you to proactively direct your passion and energy into moving forward towards your property goals.

Equal measures of both male and female investing attitudes will give you the best chance of building a profitable property portfolio that delivers for years to come.

What about you?

Here’s how you can do this…

If you want to take advantage of the opportunities our growing property markets will offer you now is a good time to consider your options. 


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.

Lower interest rates reducing mortgage stress

Despite some concern regarding the future of the property market – mortgage holders appear to be breathing a little easier. 

New results from Roy Morgan’s mortgage stress data show that in the three months to April 2017, 16.8% or 666,000 mortgage holders can be considered to be ‘at risk’ or facing some degree of stress over their repayments. low interest rates

This compares favourably with 18.4% or 744,000 mortgage holders 12 months ago.

These are the latest findings from Roy Morgan’s Single Source survey of 50,000+ people pa, which includes more than 10,000 owner occupied mortgage holders.

Problem of mortgage stress remains but improving trend

Mortgage stress is based on the ability of home borrowers to meet the repayment guidelines currently provided by the major banks.

The level of mortgage holders being currently considered ‘at risk’ is based on their ability to meet repayments on the original amount borrowed.

This is currently 16.8%, which is well below the average over the last decade.

Mortgage Stress

Mortgage Stress - April 2017
Source: Roy Morgan Single Source. 3 month moving average. Average sample n = 2,711.

An additional measure of mortgage stress is ‘extremely at risk’, which is based on the ability to meet repayments assessed on the amount currently outstanding.

This is currently 11.5% and although this is the lowest in over a decade, it still represents 442,000 mortgage holders.

Lower incomes at highest mortgage risk

Mortgage stress is much higher among the lower income groups (Under $60kpa) where it currently reaches 85.3% for those considered ‘at risk’ and 65% for ‘extremely at risk’.

Mortgage Risk Levels by Household Income

Mortgage Risk Levels by Household Income - April 2017

1. Based on amount borrowed. 2. Based on amount owning. Base: Australians 14+. Source: Roy Morgan Single Source. Has an owner occupied dwelling with mortgage, 12 months to April 2017, n = 10,172

It appears that for households with incomes of over $100kpa they are coping very well with their mortgage repayments with an ‘at risk’ level of around 1% and an ‘extremely at risk’ of less than 1%.

Norman Morris, Industry Communications Director, Roy Morgan Research says:

“Although mortgage stress levels are trending down over the last year, they remain very sensitive to interest rates and household income levels. Over the last 12 months interest  

rates are down a little but have tended to remain steady over recent months. 

“With the stress levels being much lower in the higher income groups it appears that the decline in overall mortgage risk since the December quarter has been partly as a result of the increased proportion of borrowers in households with incomes over $100,000pa.

“The stress levels used in the analysis cover all existing borrowers, which include many who have had a  loan for some time and as a result are likely to owe much less than new borrowers, and so face reduced stress compared to new borrowers”

A glimpse into Wealth Retreat – Part 4

With so much doom and gloom surrounding economic new these days – it’s safe to say we’re all ready to hear something positive.  Australia Economy Concept

In the next video if this Wealth retreat series I interviewed Economy and Property expert Pete Wargent.

Pete is a chartered Accountant who achieved financial freedom at the age of 33.

In this interview, Pete talks about the Brisbane market and also what demographic trends he is starting to see and why they represent a good opportunity for future capital growth in this country.


Knowing your financial position and setting yourself up for the future are crucial elements to leading a successful life. 

In this video I interviewed Director of Metropole Wealth Advisory, Ken Raiss, who teaches people how to protect and hold onto that wealth and pass it down to the next generation.

Kens strategies implement asset protection, tax, super and succession planning.

In this final video, I interviewed Gillian, an attendee of Wealth Retreat.

Until about a month before the seminar, Gillian had not heard of Metropole and has now heard from Australia’s leading experts on wealth creation.

Gillian was kind enough to share her thoughts with me and what she got out of the week.

You may also be interested in watching:





Aussie Expats Stung By Foreign Investor Policy

The federal government’s rule changes for foreign investors will also apply to some Australian citizens who don’t reside in the country.

Last year, a withholding tax of 10% on the sale of a home to foreign investors was introduced for properties selling at $2m and above.  world foreign investment property house market stats price figures data

The latest budget papers announced the threshold would be dropped to $750,000, and that the tax would be increased to 12.5% to improve “the integrity of capital gains tax rules for foreign investors.”

However, some expats who do decide to sell their homes once they’ve moved overseas will also be required to pay a significant portion of their capital gains to the Australian Taxation Office (ATO) when they sell and will lose their main residence capital gains tax exemption.

An ATO spokesperson confirmed that Australian citizenship doesn’t necessarily preclude expats from being required to pay the foreign investment charges.

“In some cases an Australian citizen who lives outside Australia may not be a resident for Australian tax purposes, particularly if they have been living outside Australia for an extended period,” the spokesperson said.

“In these cases, the Australian citizen may be a foreign investor for the purposes of these provisions and will not be granted a clearance certificate from the ATO if they apply. They will then have tax withheld on the sale of their property.”  

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According to the ATO, Aussies who move overseas and do not establish a permanent home in another country are “generally” Australian residents for tax purposes.

However, citizens who exit the country permanently would be considered foreign residents and would be among those whose withholding tax charges are expected to provide the government with $581m in revenue from 2017-18 to 2020-21.

A spokesperson for the Treasury said there was “no separate estimate of the gain to revenue attributable to Australian citizens”.

Hence, individuals returning to Australia and re-establishing their tax residency would not be affected when they sell.