Investopoly

Why value investing will deliver higher returns with lower risk

14 Feb 2023

Contributed by Lukas

I’m a big advocate of value investing. If you buy high a quality investment for fair price and hold it for the long run, you can’t help but make a...

What to do if your fixed rate or interest only term is due to expire in 2023

07 Feb 2023

Contributed by Lukas

It has been very well reported that many mortgage holders will soon be paying much higher interest rates when their fixed rate terms expire. It is est...

Getting into the property market is easier today than 30+ years ago

31 Jan 2023

Contributed by Lukas

It is often suggested that it’s a lot more difficult for people to buy their first property compared to many decades ago. It is true that property i...

Your most important financial step for 2023

24 Jan 2023

Contributed by Lukas

Good cash flow management is by far the most important practice that you must master to be successful at building wealth. I realise that it’s not a ...

Where you should have invested in 2022?

17 Jan 2023

Contributed by Lukas

In 1905, George Santayana wrote; “Those who cannot remember the past are condemned to repeat it.” That’s why it is always worthwhile to reflect ...

Best of 2022: Three steps to develop your own financial strategy

10 Jan 2023

Contributed by Lukas

This was the third most popular podcast episode in 2022. My aim for this topic was to give investors an insight into the strategic process that I foll...

Best of 2022: Consistency is the key to building wealth

03 Jan 2023

Contributed by Lukas

This was the second most popular podcast episode in 2022. My aim for this topic was to educate investors about the fact that investing a little bit ea...

Best of 2022: 7 key economic principles you must know

27 Dec 2022

Contributed by Lukas

This was the most popular podcast episode in 2022. The idea behind this topic was to share some basic economic principals to help people understand ec...

Brace for a big drop in consumer spending in 2023

13 Dec 2022

Contributed by Lukas

As you are aware, the RBA has aggressively hiked rates by 3% p.a. over the past 8 months, so variable home loan rates are now more than 5% p.a. (and i...

Should you invest in gold?

06 Dec 2022

Contributed by Lukas

I was interested to watch this YouTube video produced by ETF manager, BetaShares which compared the differing views of Warren Buffett and billionaire ...

Are there major changes to super on the horizon?

29 Nov 2022

Contributed by Lukas

The Albanese government’s first Federal Budget last month was a bit of a fizzer in that there wasn’t much in the way of changes that affected inve...

Why I think property prices have bottomed

22 Nov 2022

Contributed by Lukas

CoreLogic data indicates that property prices in the 5 largest capital cities have fallen by 7.1% since May, when the RBA started hiking interest rate...

Governments vested interest in maintaining property price growth

15 Nov 2022

Contributed by Lukas

There are many large and powerful institutions that have a vested interest in rising property prices. But all levels of government (i.e., federal, sta...

Retirement might not be as enjoyable as you expect unless...

08 Nov 2022

Contributed by Lukas

I recently appeared as a guest on The Australian newspaper’s Money Café podcast, where we discussed the FIRE moment. The acronym stands for Financi...

How much should you invest in property, shares and super?

01 Nov 2022

Contributed by Lukas

A common question I receive is how much should I invest in property? That is, how do you know when you have enough, and should you start investing in ...

What’s going on with share markets!

25 Oct 2022

Contributed by Lukas

Calendar year to date, the stock and bond markets have produced some of the worst returns on record, which is unusual because bonds and stocks are typ...

To what extent does rental yield affect your borrowing capacity?

18 Oct 2022

Contributed by Lukas

The very first article that I wrote for a magazine was published 19 years ago! No wonder I feel old. The article was called ‘Unlimited finance…’...

Important changes to your borrowing capacity

11 Oct 2022

Contributed by Lukas

Borrowing capacity has probably never been tighter in the 20 years since I started ProSolution! This is delaying investment plans for some clients. Ho...

5 property investing mistakes I've seen over 20 years, and how to avoid them

04 Oct 2022

Contributed by Lukas

One of the most interesting things I do is meet many investors every week (i.e., prospective clients). It is something that I have been doing regularl...

Focusing on rental income could cost you $1m in lost wealth

27 Sep 2022

Contributed by Lukas

An investment property’s total investment return will consist of rental income plus capital growth. I have written about the importance of maximisin...

How should you invest your cash savings?

20 Sep 2022

Contributed by Lukas

Often people wonder whether they should be doing more with their cash savings other than leaving them in a savings account. This blog discusses some o...

Four rules you must follow to ensure you prosper 5 years from now

13 Sep 2022

Contributed by Lukas

I wrote a blog in May warning investors to prepare for lots of bad news, uncertainty and market volatility. My thesis was that rising inflation, suppl...

Overinvesting puts retirement at risk

06 Sep 2022

Contributed by Lukas

A Goldilocks investment strategy means that you are making the most of your financial opportunities without overdoing it and taking unnecessary risk. ...

Average incomes can’t drive property prices perpetually higher

30 Aug 2022

Contributed by Lukas

 Commentators often refer to the price of property in Australia relative to household incomes. They highlight that property prices have risen two to ...

There's no need to take a lot of investment risks

23 Aug 2022

Contributed by Lukas

I believe that most people have a very similar tolerance for investment risk.  Most people are comfortable achieving a long-term annual return of 7% ...

Why obtaining quality financial advice will become even more difficult

16 Aug 2022

Contributed by Lukas

 Most people would say that finding a good financial advisor has always been a difficult task. Ten years ago, most financial planners received commis...

The RBA made 3 BIG mistakes... to the detriment of borrowers and the economy

09 Aug 2022

Contributed by Lukas

If Australia slips into a recession, it will mostly likely be the RBA’s fault. They have completely botched the management of interest rates to the ...

Important changes to Queensland land tax

03 Aug 2022

Contributed by Lukas

Queensland announced changes to land tax in its state budget in February 2022. On 12 July 2022, it released more detail regarding how these changes wi...

Which industry super fund do I think is the best overall? (Inc. 2022 super returns)

02 Aug 2022

Contributed by Lukas

 Superannuation returns for the 2021/22 financial year were mostly negative. However, we shouldn’t forget that the previous 18-month period (i.e., ...

Now’s a great time to buy property. Here’s why…

26 Jul 2022

Contributed by Lukas

In mid-2021, I wrote this blog: “Don’t buy a property in this market…” because, at that time, many property buyers were over-paying for proper...

How to maximise investment property tax deductions

19 Jul 2022

Contributed by Lukas

You must invest in residential property primarily to benefit from the power of compounding capital growth. Any tax benefits (negative gearing) are mer...

Why did apartments miss out on the recent property boom?

12 Jul 2022

Contributed by Lukas

 It’s been well documented that property prices rose significantly over the course of 2020 and 2021. According to the Real Estate Institute of Aust...

Beware: existing customers always pay higher interest rates

05 Jul 2022

Contributed by Lukas

 Banks will usually offer higher interest rate discounts to new customers to win their business. But, of course, the banks never offer these higher d...

Economics 101: 7 key principles you should know

28 Jun 2022

Contributed by Lukas

 An understanding of basic economic principles will set you in good stead to understand financial commentary, political rhetoric and make your own as...

Should future trends drive your investment decisions?

21 Jun 2022

Contributed by Lukas

Many investors consider future trends when making investment decisions. Popular examples of investable trends include the growing demand for green ene...

Should you do anything about rising interest rates?

14 Jun 2022

Contributed by Lukas

Some investors have been spooked by the RBA hiking interest rates by 0.75% over the past two months, particularly since it has spent the past two year...

6 case studies: The importance of holistic advice

07 Jun 2022

Contributed by Lukas

Our goal is to inspire our people to adopt a holistic approach when making financial decisions. That's because financial decisions often include ...

"Timing" the market can be more important than "time in" the market

31 May 2022

Contributed by Lukas

Most people are familiar with the saying that “time in the market is more important than timing the market”. It is very true that holding a qualit...

Be prepared for a few years of turbulence... and opportunity

24 May 2022

Contributed by Lukas

I think we need to be prepared for the possibility that the next couple of years might be a bumpy ride in terms of the economy, financial markets, int...

Should you plan to give or receive an inheritance?

17 May 2022

Contributed by Lukas

A lot has been written about the good fortune of baby-boomers in that, overall, they have enjoyed a long period of economic, share market and property...

Patience & discipline: Two vital traits of every successful investor

03 May 2022

Contributed by Lukas

I find it ironic that the two common financial mistakes that people make are (1) not investing i.e., procrastination or (2) doing too much i.e., turni...

"Consistency" (not intensity) is the key to building wealth

19 Apr 2022

Contributed by Lukas

When it comes to building wealth, the truth is that unremarkable actions completed consistently for many years (decades) produce remarkable results. B...

Should you ever sell property?

12 Apr 2022

Contributed by Lukas

A common property investing rule-of-thumb is that you should “buy property and never sell”. That’s because prices always trend higher over time ...

Three steps to develop your own financial plan

05 Apr 2022

Contributed by Lukas

A few weeks ago I wrote a blog about the one thing that stops most people from making the most of their financial opportunities including making regul...

2022 Federal Budget Summary: What's in it for you?

29 Mar 2022

Contributed by Lukas

This blog summarises the initiative contained in the 2022 Federal Budget announced on 29 March 2022.Budget initiatives that might affect youExtended t...

Why haven't you invested as much as you could and should have?

22 Mar 2022

Contributed by Lukas

It is very common for people to make an initial investment e.g., buy a parcel of shares or an investment property, but fail to make any further invest...

Super: What are your options when you retire?

15 Mar 2022

Contributed by Lukas

Even though its compulsory to invest money in superannuation, many people do not understand their options once they retire.This blog provides a summar...

Will higher interest rates cause property prices to fall?

08 Mar 2022

Contributed by Lukas

Vocal market commentor and fund manager, Chris Joye wrote in the AFR in November last year that Australian house prices could fall by 15% to 25% after...

Is it a good strategy to renovate or develop an investment property?

01 Mar 2022

Contributed by Lukas

The value of a property consists of two components being the land plus any improvements i.e., the dwelling. Generally, land appreciates in value where...

Playing the long game is not always easy but it is the most powerful approach

22 Feb 2022

Contributed by Lukas

In my book, Investopoly, I outlined 8 investing rules that if followed, will help you build wealth and avoid making costly mistakes. These 8 rules are...

Quality is King: Most important property investing golden rule

15 Feb 2022

Contributed by Lukas

There is one property investing golden rule that is more important than everything else. And if you nail this ‘one thing’, you are guaranteed to b...

How to invest in Commercial Property: Part 2

08 Feb 2022

Contributed by Lukas

This is the second part of a two-part blog about investing in commercial property (you can read part one here). Now that you have a broad understandin...

Investing in Commercial Property: Part 1

01 Feb 2022

Contributed by Lukas

I believe that most people would be well-served by investing in various asset classes, including shares and property. I do not believe that any one as...

2022 Market predictions and Planning: Part 2

24 Jan 2022

Contributed by Lukas

Last week, I shared what risks and opportunities investment markets could offer us during 2022. These market expectations helped my wife and I set our...

2022 Predictions and Planning: Part 1

19 Jan 2022

Contributed by Lukas

It is stating the obvious to say that goal setting is important. The fact is, if you aim at nothing, often that is exactly what you will achieve; noth...

2021 in review - where should you have invested?

14 Dec 2021

Contributed by Lukas

For my final podcast for 2021, I thought it would be interesting to look back to see how various investment asset-classes performed. This is important...

Everything you must know about Capital Gain Tax (CGT)

07 Dec 2021

Contributed by Lukas

Paying Capital Gains Tax (CGT) isn’t necessarily a bad thing because it means that you have sold an asset and made a profit, which is better than a ...

The three most common mistakes made by investors

30 Nov 2021

Contributed by Lukas

After almost 20 years of interacting with investors (and potential investors) on a daily basis, I’ve noticed some common themes that prevent investo...

Are we in a bubble or micro-bubble?

23 Nov 2021

Contributed by Lukas

With property and share markets trading at all-time highs, it’s reasonable and perhaps prudent to consider whether we are in a (asset price) bubble....

How to attract a great advisor

16 Nov 2021

Contributed by Lukas

A financial advisor’s job is to develop a plan and help you implement that plan over many years, so that you achieve your financial and lifestyle go...

How to invest in property for less than $1 million

09 Nov 2021

Contributed by Lukas

It is becoming increasingly difficult to buy an investment-grade house for under $1 million in Brisbane, Melbourne and Sydney. This begs the question;...

Inflation and interest rates: where are they heading?

02 Nov 2021

Contributed by Lukas

The topic of rising inflation and its potential impact on interest rates has been dominating the financial press over the past few weeks. The bond mar...

Will the property market ever crash?

26 Oct 2021

Contributed by Lukas

Will the property market ever crash?I started ProSolution almost 20 years ago and if there’s been one common theme over that time, it is how “expe...

How do the big changes to income protection insurances affect you?

19 Oct 2021

Contributed by Lukas

I wrote a blog in February 2020 highlighting the first phase of government mandated changes to income protection insurance products. The second phase ...

Freedom to choose the work you do for love, not money (how to plan)

12 Oct 2021

Contributed by Lukas

I have noticed that more people are attracted to seeking out work that they have a personal connection with, particularly since the beginning of Covid...

Likely tightening in lending rules is unlikely to impact investment-grade property

05 Oct 2021

Contributed by Lukas

Federal Treasurer, Josh Frydenberg has asked the Council of Financial Regulators to investigate the fact that credit growth is materially outpacing gr...

How much insurance is do you need? And how do you minimise its cost?

28 Sep 2021

Contributed by Lukas

Personal insurance is becoming more difficult to obtain and increasingly costly to maintain. This blog outlines the approach we take when formulating ...

How to value stocks - an introduction to valuation concepts

21 Sep 2021

Contributed by Lukas

How to value stocks – an introduction to valuation conceptsTwo years ago I wrote a popular blog that explained some simple share market concepts and...

Mastering a successful mindset... 5 fears about money

14 Sep 2021

Contributed by Lukas

Over the past 20 years, the US share market has risen 5-fold, the Australian share market 5.4-fold and Australian property 4.2-fold. That means if you...

Loan structuring 101: How to finance a property portfolio

07 Sep 2021

Contributed by Lukas

Borrowing to invest in property is a popular and highly effective wealth accumulation strategy if it’s implemented correctly. However, loan structur...

A powerful share market investment strategy you can implement yourself

31 Aug 2021

Contributed by Lukas

Investing in the share market is a relatively easy, simple and a low-cost investment strategy to implement, if you know the right way to do it, of cou...

What impact will the prolonged lockdowns have on the property market and economy?

24 Aug 2021

Contributed by Lukas

Approximately half of Australia’s population is currently in a lockdown, and this may continue for another few months until vaccine target levels ar...

Land tax minimisation (or elimination) strategies

17 Aug 2021

Contributed by Lukas

Land tax is levied on the value of an investor’s landholdings on 31 December each year. It is an insidious tax as any land tax is relatively small w...

Property versus shares; a practical comparison

10 Aug 2021

Contributed by Lukas

As a completely independent advisor, I have no vested interest in how my clients invest. Whether they invest in property, shares or any other asset cl...

Investment case for Brisbane property: Pros and cons

03 Aug 2021

Contributed by Lukas

I hosted a seminar in August 2018 where I presented an investment case for (investment-grade) houses in Brisbane in the $800,000 to $1m price range. I...

2021 super returns: The best industry funds & important considerations

27 Jul 2021

Contributed by Lukas

It is not unrealistic to expect your super returns to be over 20% for the financial year ended June 2021. Of course, this is a great outcome in what h...

How you can use mean reversion to drive investment returns

20 Jul 2021

Contributed by Lukas

One of the challenges that many investors face is deciding what to invest in, how much and when. There are three methodologies that you can employ to ...

When to not invest: 5 questions to ask

13 Jul 2021

Contributed by Lukas

There are a number of factors that I consider when contemplating an investment on behalf of my clients or for me, personally.I think it’s very impor...

Are investment returns that important?

06 Jul 2021

Contributed by Lukas

Last week a prospective client asked me a very good question. They asked whether I have data that shows what investment returns my clients have genera...

Investing in property in the outer suburbs - should you do it?

29 Jun 2021

Contributed by Lukas

Some buyers’ agents promote investing in more affordable locations. I can understand why some investors might be attracted to follow their advice. B...

How to ensure your superannuation will be paid to your intended beneficiary

22 Jun 2021

Contributed by Lukas

Twenty-three-year-old, Ashleigh Petrie nominated her mother as the sole beneficiary of her super. However, Ashleigh’s 63-year-old fiancé was succes...

Don't buy property in this market...

15 Jun 2021

Contributed by Lukas

It is true that buying a property in any market will generate a lot of wealth as long as you (1) buy the right property and (2) hold it for a few deca...

Sophisticated borrowers to jump through fewer hoops to get a new loan

08 Jun 2021

Contributed by Lukas

The Corporations Act makes a distinction between wholesale and retail clients. It is assumed that wholesale clients have a sufficient level of financi...

Warning: 3 reasons why negative gearing is in jeopardy

01 Jun 2021

Contributed by Lukas

One of the Australian Labor Party’s (ALP) big election promises in the 2019 federal election was to abolish negative gearing. It would be logical to...

Active share investors failed to take advantage of last year's volatility

25 May 2021

Contributed by Lukas

Active fund managers use their skill and experience to pick which stocks to invest in. An alternative to active investing is to invest in low-cost ind...

Pros and cons of buying property without a pre-approval

18 May 2021

Contributed by Lukas

Many lenders are taking a number of weeks (sometimes months) to approve loans at the moment. These delays have been caused mainly by significantly hig...

2021 Federal Budget - Financial planning opportunities

12 May 2021

Contributed by Lukas

Treasurer Frydenberg handed down the federal budget last night and to be honest, there’s not a lot in it for individuals and investors. However, the...

How to make the most of your super increase (after 1 July 2021)

04 May 2021

Contributed by Lukas

After 1 July this year, your employer must increase your super contributions from 9.5% to 10% of your salary. This contribution rate will then increas...

Tax: How to minimise your largest lifetime expense

27 Apr 2021

Contributed by Lukas

Tax isn’t necessarily a bad thing. If you’re paying tax, it means that you are making money (income or capital gains). But of course, there’s no...

Don't underestimate the mathematical power of gearing

20 Apr 2021

Contributed by Lukas

It’s stating the obvious to say interest rates are very low at the moment. But what can be easily missed is how powerful low rates can be for invest...

Investment opportunity: Is the share market switching to value?

13 Apr 2021

Contributed by Lukas

Growth investors have been well-rewarded over the past decade. For example, the S&P500 index (US market) has delivered an average return of 14.5% ...

Why property price growth will level out over the rest of this year

06 Apr 2021

Contributed by Lukas

The internet and newspapers are awash with stories of properties selling for amounts wildly above reserve. Such news can create FOMO and fuel buyer de...

What is a holistic accountant? What value do they provide? When to use one.

30 Mar 2021

Contributed by Lukas

The word ‘holistic’ is defined by Oxford Languages as “characterised by the belief that the parts of something are intimately interconnected and...

Investment lending rules to be tightened this year

23 Mar 2021

Contributed by Lukas

Almost everyone is predicting that property prices will surge higher this year. In fact, the newspapers are already full of stories about properties s...

How to avoid being ripped off by a financial advisor: 3 simple checks

16 Mar 2021

Contributed by Lukas

It is alleged that Sydney-based financial advisor, Melissa Caddick stole $25 million from her clients. She has recently gone “missing”, leaving a ...

Bitcoin, (unprofitable) billion dollar stocks and other madness

09 Mar 2021

Contributed by Lukas

Do you realise that $10,000 invested in Bitcoin 5 years ago would be worth over $1.1 million today? Makes you think, right?With lockdowns occurring al...

What's involved in changing accountants (and how to find a good one)?

02 Mar 2021

Contributed by Lukas

Choosing the right accountant can make a world of difference. A proactive accountant will share tax-saving and wealth-building ideas, be available to ...

Steppingstone strategy: how to buy your dream home

23 Feb 2021

Contributed by Lukas

If the recent property price growth predictions become reality over the next couple of years, more homeowners may become ‘priced out’ of their des...

Beware: Not all ETF's (exchange traded funds) are what they seem

16 Feb 2021

Contributed by Lukas

Exchange Traded Funds (or ETF’s) have become very popular, particularly over the past 5 years. In fact, the amounts invested in ETF’s has doubled ...

An investment case for putting all your property eggs in one basket

09 Feb 2021

Contributed by Lukas

It is generally an accepted investment principal that diversification can reduce your risk and improve investment returns. The common vernacular is, s...