[Podcast] Robert Kiyosaki Interview – Do what the 99% are not doing!

My special guest today is Robert Kiyosaki author of the best-selling book  Rich Dad, Poor Dad.

When Robert’s team reached out to me and asked me if I’d like to have him as a guest, I jumped at the opportunity, because I heard that he’s got a message that he wanted to share with Australians about the challenges for our economy ahead, and the opportunities on the other side of the downturn. My Podcast #188 Robert Kiyosaki 2

Now, I don’t agree with everything he has to say, but I respect that he’s taught millions of people about the basics of financial literacy, so I was keen to hear his opinions. 

You’re going to enjoy the conversation as we talk a bit about his basic financial concepts before we get into deeper topics. 

Although I don’t agree with everything Robert says, I thought I’d give him the courtesy of the airtime he deserves, then after my chat with him, I’m going to share my views. 

So, be sure to listen to both sides of the discussion, and then you’ll be able to use that to inform your own views.

Topics that Robert and I discussed:

  • Why so few people are becoming financially independent
  • Robert’s advice to people taking on too much debtRobert
  • The shadow banking system
  • The Cashflow Quadrant
  • What’s ahead for the average Australian’s financial future
  • How bad Robert thinks the crisis is going to get
  • Whether Robert’s predictions have become more pessimistic over time
  • The upside Robert sees on the other end
  • Factors other than resilience that it takes to be a successful entrepreneur
  • Whether today’s technologies make it easier to get started in business
  • What Robert thinks will happen to house prices in the capital cities
  • Robert’s thoughts about superannuation
  • What it was like dealing with Donald Trump before he was president

Michael’s Thoughts on Robert’s Interview

Clearly Robert knows a bit about real estate in the United States, where the rules are very different, where the tax regimes are very different, where the markets are very different, where the way you invest is very different. 

In previous podcasts, I’ve explained why Australian real estate is different from overseas, but many overseas gurus just don’t get it.

where to invest in property 2020 australia

In Australia, property markets are underpinned by the fact that 70% of properties are owned by homeowners, and half of them don’t even have a mortgage against their properties. 

Of the other half, many are well ahead in their payments, while others are using their mortgage to support the purchase of investment properties that bring cash in.

This is very different to overseas. 

Australia really doesn’t have a debt problem – at least, not when it comes to real estate assets.

Robert also suggests that your home is not an asset – meaning that it doesn’t bring money in, only expenses going out, so it’s a liability.

And if you accept his definition of an asset, he’s right. 

But that’s not my definition of an asset. It’s also not the common definition of an asset. 

I believe a million dollars is an asset if you have it sitting in a bank, or even if you take it out and put it under your mattress.

It’s an asset even with no cashflow. 

Robert is a cashflow investor, and that’s what’s appropriate for the tax rules and the system in the United States, but it has not made people wealthy in Australia. 

There are four ways to make money on residential real estate in Australia: 

  1. capital growth, 
  2. rental return, 
  3. tax benefits, and 
  4. manufacturing growth through renovation and development. 

The most important of those is tax-free capital growth.

Unfortunately, too many people look for cashflow from their residential real estate investment, and that’s just not how it works in Australia.  Recession Australia Note Money Economy Squeeze Tighten Save Saving Budget Cut 300x200

Similarly, Robert’s concerns about our superannuation funds not being fully funded are just not accurate.

The average superannuation fund that you and I are part of are fully funded. 

There’s no doubt that Australia’s economy, and that of most countries in the world, will experience a recession. 

But currently, a combination of monetary and fiscal policies should see us start to rebound in the third or fourth quarter of this year.

Robert an innovative thinker and an expert in personal finance, but he’s not an economist. 

We have some very astute economists employed by our banks, by the Reserve Bank of Australia, by the International Monetary Fund, and they all see a difficult six months ahead, but nowhere near as negative as the naysayers grabbing headlines at the moment. 

Links and Resources: 

Michael Yardney

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Robert Kiyosaki’s Australian virtual seminar

Some of our favourite quotes from the show: world globe

“I wouldn’t invest the way the way I invest in Australia in New Zealand, where the rules are very different, or in the United States.” – Michael Yardney

“I’m not suggesting that there’s a bubble in Australia, and I think those who think there are, are probably wrong.” – Michael Yardney

“In Australia, residential real estate’s a high-growth, relatively low-yield investment, and to try and make it something different just bastardizes it.” – Michael Yardney

PLEASE LEAVE US A REVIEW

Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it’s your way of passing the message forward to others and saying thank you to me. Here’s how

investment property australia 2020
icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'[Podcast] Robert Kiyosaki Interview – Do what the 99% are not doing!' have 2 comments

    Avatar

    May 22, 2020 Andy

    Thank you for sharing Mr Kiyosaki’s views. I think there’s a lot of truth in what he says but I agree with Michael. The situation for real estate investors is different here in Australia than in the US. Laws are different, markets are different and our investment strategies need to be different as a result.
    I also disagree with Mr Kiyosaki when he says “your home is not an asset because it doesn’t provide cash flow”. It seems to me he is ignoring the fact that, if you didn’t own your own home, you’d be paying rent so there is an opportunity cost involved. Your own home might not provide you with $500/wk of income but, if it saves you $500/wk of expenses then there is an equivalent benefit to your cash flow… Plus if the home you own appreciates in value you enjoy a tax-free capital gain whereas, if the home you rent appreciates in value you don’t… in fact you’ll most likely have to pay more rent. So for me, owning a home is definitely an asset.

    Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*