What Every Property Investor Needs to Know about Finance, Tax and the Law
FULLY UPDATED 3RD EDITION OF THE BEST SELLER
Michael Yardney
Published by: Wilkinson Publishing Pty Ltd
ACN 006 042 173
Level 4, 2 Collins Street
Melbourne, Vic 3000
Ph: 03 9654 5446
www.wilkinsonpublishing.com.au
Copyright Michael Yardney 2017
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means without the prior permission of the copyright owner. Enquiries should be made to the publisher.
Every effort has been made to ensure that this book is free from error or omissions. However, the Publisher, the Author, the Editor or their respective employees or agents, shall not accept responsibility for injury, loss or damage occasioned to any person acting or refraining from action as a result of material in this book whether or not such injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part of the Publisher, the Author, the Editor, or their respective employees or agents.
A catalogue record for this book is available from the National Library of Australia
Planned date of publication: 12-2017
Title: What Every Property Investor Needs to Know About Finance, Tax and the Law
ISBN(s): 9781925642223 : Printed - Paperback
Cover and page design by Spike Creative Pty Ltd
Ph: (03) 9427 9500
www.spikecreative.com.au
Cover photography: Matt Irwin
Note to reader
This publication contains the opinions and ideas of the authors. It is sold on the understanding that neither the author nor the publisher is engaged in rendering legal, tax, investment, insurance, financial, accounting, or other professional advice or services. If the reader requires such advice or services, a competent professional should be consulted. Relevant laws vary from state to state.
Additionally, the laws keep changing and some of those mentioned in this book may now be out of date. Any opinions, conclusions or recommendations set forth in this book are subject to change without notice.
The strategies outlined in this book may not be suitable for every individual and are not guaranteed or warranted to produce any particular results. Past performance may not be a reliable indicator of future performance.
This book has been written without taking into account the objectives, financial situation or needs of any specific person who may read this book, which means that before acting on the information in this book, the reader should seek appropriate professional or financial advice.
No warranty is made with respect to the accuracy or completeness of the information contained herein, and both the author and publisher specifically disclaim any responsibility for any liability, loss or risk, personal or otherwise which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book.
Acknowledgements
Those who know me know that for years I have been an advocate of financial education. While I have educated tens of thousands of Australians in how to become wealthy by investing in property, I have always said first invest in educating yourself.
I have also been telling people to learn from teachers who are actively practicing what they teach and to surround themselves with a great team of mentors and expert advisors.
This book was written with the assistance of a group of experts who I consider my teachers, my advisors and my friends.
Ken Raiss and Rob Balanda have written specific chapters of this book and both have a lifetime of experience in their field of expertise as well as property investing.
But most of the other ideas I share here come from my network of professional colleagues that I deal with in business. Over the years many other people have influenced my life, my thoughts, my values and my business and investment success and all the ideas. You are all my teachers; many have become my friends and I try and learn something new from you each day.
The first edition of this book was written in 2010 with the input of my good friend Rolf Schaeffer, a finance broker who has since retired, but taught me a lot about the world of finance and Ed Chan, founder and executive chairman of Chan & Naylor Accounting, who was one of my early mentors in the world of tax, structuring and legally minimising tax.
I have read almost every book about property ever written, learned lots along the way, and there are many ideas sprinkled throughout this book that I have learned from others. I guess I had to learn everything from someone at one stage, so I am sorry I cannot acknowledge everyone I really cant remember where I first came across many of my strategies.
Special thanks must also go to my family, in particular, my wife Pam for encouraging me, supporting me in every way and putting up with all my late nights and weekends on the computer. She endures my almost fanatical attitude to business and property investment, and continually encourages me through all the good times and through all the things I still need to learn. I am humbled by her love and devotion, which I try hard to match, but never quite succeed.
I also thank our six children (in our blended family) as well as our 10 grandchildren and appreciate their love and encouragement.
Further thanks to my business partners as well as the whole team of property professionals at Metropole. And this book would not have been possible without the skills of Nicola McDougall, who helped update this edition.
Thanks to Michael Wilkinson from Wilkinson Publishing for having faith in me and my books.
And finally to you, the reader thank you for choosing to invest in this book. Please take advantage of the information I have to offer by using it to obtain the financial independence you deserve.
Authors note to the third edition
Whether you are just considering making your first property investment or you already own a substantial property portfolio, this book is for you. I have written it for any property investor who would like to become richer by making their money work harder and outperform the returns achieved by the average investor.
While this book may not give you all the technical answers, my intention is to offer you an insight into how many of Australias wealthy self-made millionaires made their money through strategic property investing and went on to develop financial freedom.
One of the first steps to becoming richer is to get smarter with your money, become financially fluent, start treating your property investments as a business and take advantage of the system rather than having it work against you.
The fact that the banks change their rules, the tax system is complicated and biased towards business people and investors, or that most of us dont understand the legal system may at first seem unfair. The key to becoming richer is to recognise the system is unfair, learn the rules and use them to your advantage. The rich know the more financially fluent they become the bigger the problems they can handle and the more money they can make.
Together with two experts I will explain the requirements, benefits and limitations of our finance, tax and legal systems as they relate to property investment. This way you can have them work for you and not against you, because its not how much money you make that matters. Its how hard your money works for you and how much you keep that counts.
