Investopoly
Episodes
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...
Good financial decisions are a compounding asset
02 Feb 2021
Contributed by Lukas
One good financial decision will have positive consequences. But five good decisions in a row will be life changing. It will create a lot more than fi...
Can property prices keep rising at the same rate?
27 Jan 2021
Contributed by Lukas
A common question people ask is, “can property values continue to rise at the same rate which they have over the past 3 to 4 decades?” The short a...
6 alternatives to savings accounts
19 Jan 2021
Contributed by Lukas
Interest rates on savings accounts were over 5% p.a. in 2011… only 10 years ago. Today, you would be lucky to receive more than 0.5% p.a.! That mean...
6-step process I used to set my personal financial goals for 2021
12 Jan 2021
Contributed by Lukas
The beginning of a new year is a great time to take stock and set personal and financial goals for the coming year. I wanted to share the process that...
Four reasons the property market will take off in 2021
15 Dec 2020
Contributed by Lukas
During 2020, most economists and commentators predicted that property values would plummet by 10%, 20% or even 30%! In May I wrote a blog outlining th...
How much should you spend on investment property maintenance and improvements?
08 Dec 2020
Contributed by Lukas
One of the advantages of investing in property is that you can make improvements to enhance its value and consequently your personal wealth. A disadva...
What has 2020 taught us? Top 5 financial lessons learnt this year.
01 Dec 2020
Contributed by Lukas
Without wanting to seem too philosophical, I believe that life offers us lessons, but we must be prepared to look for them. As we are approaching the ...
Don't put your tax deductible interest at risk: 10 rules to follow
23 Nov 2020
Contributed by Lukas
Interest expenses are often an investors largest tax deduction. You must realise that the onus of proof is on the taxpayer (you), not the ATO. That is...
Important insights into a post COVID recovery
16 Nov 2020
Contributed by Lukas
Understanding how Covid lockdowns have impacted certain individuals and industries, helps to inform us about how quickly the economy and markets may r...
How much does financial advice cost?
10 Nov 2020
Contributed by Lukas
If you need financial advice, how much should you expect to pay for it? Of course, the cost is what you pay, but value is what you receive. The value ...
How do you ensure your will is set up properly?
03 Nov 2020
Contributed by Lukas
Most people acknowledge that a will is an important document to create, but we all hope there’s no urgency to prepare it. As such, many people rarel...
Research report: Performance review of investment-grade apartments
26 Oct 2020
Contributed by Lukas
It is my observation that investment-grade apartments in Melbourne have under-performed (from a capital growth perspective) compared to houses over th...
Update: US election, impact of zero overseas immigration, US tech stocks, super-low rates and more
20 Oct 2020
Contributed by Lukas
Investment update: How to navigate current uncertaintiesThere is never a perfect time to invest. The stars never align. In reality, there will always ...
Why were you so wrong?
13 Oct 2020
Contributed by Lukas
Have you ever had a strong opinion (prediction) about investment markets which was subsequently proven to be incorrect? A recent example was when many...
Federal Budget 2020: Overview & analysis
06 Oct 2020
Contributed by Lukas
This year’s budget was definitely aimed at business rather than individuals, and it needed to be. The main goal of the federal budget is to create j...
Lending update: interest rates and borrowing capacity improvements
30 Sep 2020
Contributed by Lukas
The government made an important announcement last week. This change could substantially increase your borrowing capacity in the next year. It is perh...