Ask Michael Anything [video] – How to buy property on an average income?

Is having a property portfolio just a far fetched dream, or does everyone have a chance of achieving it?

This week watch Michael discuss how the average income owner can achieve their property portfolio dream.

This week’s question: economy property market grow wealth house dream first home

Hi Michael,

I’ve seen couples featured in the magazines who’ve accumulated large property portfolios bit I seem to be having trouble getting finance for my next property.

How do you keep buying property every year if you have an average income?


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'Ask Michael Anything [video] – How to buy property on an average income?' have 2 comments

  1. October 21, 2016 @ 2:09 pm Alex Lee

    Hi Michael,

    I have just read your book Guide To Getting Rich and also How To grow A Multi -Million Dollar Property Portfolio some time back.
    Although I found some useful gems in your books , I have difficulty in accepting some parts of it , particularly Chapter 24 How much do you need to retire rich?
    Your Living off Equity Strategy makes some tall assumptions that an average Australian could even accumulate a $5 million property portfolio in the first place . Even as you have suggested using the Equity in existing properties to fund future purchases , the question of serviceability arises. The Banks will not provide the financing if there is no sufficient cash flow to service the loans. For the average Australian say on an income of $100,000 pa and has negative geared properties , where would he find the additional Cash flow for the banks to give further financing?
    Secondly, even if he could have accumulate a $5million property portfolio ,to obtain refinancing loan of $100,000 each year and every year is not practical . The cost of obtaining the loans, cost of valuation of the properties and the assumption of the increase in value of the properties almost every year is indeed a tall one.

    Your books have quoted Robert Kiyosaki often. In the Conspiracy of the Rich , Robert emphases the importance of Cash flow. He also added the Rich think Cash Flow while the middle class played the game of capital gains and basing only on Hope that their assets would appreciate in the future.

    I take a middle ground . Because of my Cash Flow properties ,I could financed my growth properties and because of my growth properties I could refinance to but more Cash flow properties. Without the other I would not be able to grow my property portfolio. Having paid down the loans on my Cash Flow properties , I can then enjoy a steady stream of income and still have the growth properties to continue the accumulation of wealth.
    I’ll appreciate your thoughts on this and in particular your differing view to Robert Kiyosaki.

    Thank you.
    Kind regards,


    • October 21, 2016 @ 2:22 pm Michael Yardney

      Robert Kiyosaki’s principals work for USA property where the landscape is very different, where I agree that cash flow is king, but I’ve never come across an Australian investor who has retired on cash flow positive properties – despite what you might read in the magazines. You need cash flow to keep you in the game, but without cpaital growth, you’ll never manage to get the next deposit for your investment


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