3 Ways to Build Wealth and the 1 Way That Works

Are you looking to build a level of wealth or financial security like the majority of Australians?

Finance BufferIt is the most common answer I get when I ask clients what they would like to get out of their investments.

……“Financial Freedom”

It is the Holy Grail of Investing and one that few people ever get to achieve.

Statistics suggest only 2-3% of people that invest in property actually create a level of financial independence.

When starting out though, for me there was three main ways that I could choose to build wealth, here are my thoughts;


This is often the first thing people think about creating wealth, as we are often encouraged from an early age to save our pennies!

The truth is that even if you were able to double your income today, it would almost be impossible to save enough to achieve long-term wealth.

One reason is the Tax Man!

For every dollar you earn, a large portion is lost to tax.

Also, with savings rates being in the low 1% to 2% at best, the ability to compound is virtually negligible.

So – You cannot save your way to Wealth

Passive Income

The next way is to look at building cash flow or passive income.

I believe that this is the way the vast majority of Australians go about building wealth.

I also believe that it is the reason the vast majority of Australians are not wealthy.

I know the appeal, with property, it goes something like…

Buy 5 properties in 5 years that are all $20,000 cash flow positive and you will be able to live of $100,000 and retire in year 6!

Sounds so simple doesn’t it!

However, when you break it down further and look into the detail, it begins to falls apart.

Remember though, it is just more cash flow, so along with that comes more tax!

And not if, but when interest rates rise again, the profit gets smaller and smaller and you are left with a property that does not grow in value and provides very little cash flow.

At least not enough to achieve your financial goals.

I believe this is the reason that around 92% of property investors only own 1 or 2 investment properties – they chase cash flow and get stuck as their properties fail to grow in value.

They will never achieve the level of financial freedom they set out to achieve.

I have warned previously about passive income.

Building Your Asset Base

The last way is the proven way and the way that the successful investors build long term, sustainable wealth.

They focus on building their asset base with high capital growth assets.

Property Goals Invest House Passive Income

They understand the importance of capital growth as opposed to cash flow and savings and adopt strategies that focus on long-term wealth.

Interestingly also, is the fact that their strategies also include tax minimisation strategies, as opposed to these other two ways that include paying tax.

Sure, they may pay tax eventually or if they sell, but in the accumulation process, they are often using equity that is tax free.

This can then be combined with significantly higher levels of compounding and growth.

These are the keys to building wealth.

To Summarise

Many Australians set their sights on investing in property with a hope to achieving financial freedom.

They understand that it is impossible to build wealth from silly saving your money and putting it in the bank.

Fast MoneyMost focus on building cash flow and fail to understand that a mixture of low growth and high taxes prevent them from achieving their financial goals.

The wealthy do it differently.

They focus on building their asset base with high capital growth assets and use strategies to minimise their tax and maximise the effect of compounding.

The focus on the longer term and once they have a big enough asset base, they can transition into building a cash flow machine and realise their financial goals.

This is what the team at Metropole does.

We assist our clients to grow their asset base faster with the right asset selection and with the added dimension of adding value to grow your portfolio faster.

There are many perceived ways to wealth, but only one has stood the test of time!

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on


If you’re wondering what’s ahead for property you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.

In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3.5 Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

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Brett Warren


Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane

'3 Ways to Build Wealth and the 1 Way That Works' have 2 comments


    February 8, 2021 Doug

    I know money is near free but you cant buy property without cashflow. Obviously you must have been gifted property. Your property is useless without cashflow unless it is a PPOR, but you still need cashflow to leverage and grow wealth from it . With out Cash flow property is a liability and a drag on asset building. How much leverage and how many properties have you bought without cashflow to give the leverage. Never say never There are people who have bought 7 properties in 7 years., but it is irrelevant how long it takes. Just because you dont have knowledge insight or skill doesnt mean it cant be done.. I t is easier than it has ever been with rising rent , low interest rates and bull sharemarket.


      Michael Yardney

      February 8, 2021 Michael Yardney

      Doug – property has always been a game of finance with some houses thrown in the middle. Cash flows critical initially to save a deposit, and then to hold onto your property as it grows in value. That’s why most people can’t afford to own an investment property. However it is never been cheaper to borrow money


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