How to Give Your Kids a Head Start in Property Investing

George Markoski The next 10 years, the last opportunity for people to become property investors. And the people that didn’t do it, they’re going to be intergenerational poorness forever. And this is the thing, people want certainty before they invest. But when everyone’s certain, that’s when it’s too late. Because this is going to be the last boom we’re going to have for a long time. When I was living in Sydney back in the 90s, you know, being 18 years old trying to rent in Sydney was very difficult and I thought that was bad. But I reckon now being an 18-year-old in Sydney would be worse. George Markoski I had my son in my arms for the first time and I was thinking, I’m lucky, I’ve made a lot of money, so it’s going to be easy for me to help my son. George Markoski But I was thinking, what would I say to my 20-something self? I wouldn’t go and give him money. What I would do is I’d give him an education. The biggest gift isn’t money, it’s knowing what to do. Okay. Hello and welcome to the Positive Property show with your host George Markoski and my co-host, Adam Albrecht. Adam, how are you? Adam Albrecht How are you? Good, thank you. George. George Markoski How Aussies can buy their child a property without spending any money, that’s what we’re going to talk about later tonight. But before we do that, what I want to do is go to the state of the nation and just talk to you about what’s been happening at the moment. Adam Albrecht Well, George, I think just let me interrupt you just for this once for the. Tonight I think we need to all congratulate you on the birth of your first son, Max. Yes, thank you on behalf of the whole community. On the behalf of everybody, this obviously hasn’t been rehearsed, so I just want to say congratulations. And I’m sure people who don’t know now know that you’ve now got your first son named Max. And I just want to say big congratulations on behalf of all of us. George Markoski Thank you, thank you. Now what I’m going to do now,. Adam Albrecht I’m sure my son Max and Benny are watching as well, so. George Markoski Oh, beautiful. Adam Albrecht We’ve now got two Maxes in the family. George Markoski Beautiful. Exactly. It’s a lovely name. Max Maximilian Alexander Markoski. Adam Albrecht Congratulations to you and Christina. George Markoski Thank you, thank you. And look, that’s what brought on this whole episode tonight talking about how to get your kids a property. Because I started thinking about that I’m going to go through the state of the nation and Then we’re going to go through that definitely. Let’s start and let’s talk about what’s been going on. Australia’s perfect property storm. Tenants being crushed and we’ve still got a rental crisis. Australia’s rental shortage has never been worse in history. So national vacancy rates are fall to 1.5%. This is the worst rental crisis we’ve had since Captain Cook actually discovered Australia. George Markoski The 1.3 million migrants absorbed all the available rentals because really what you need for a balanced market is about 3% vacancy rate because that gives room for tenants to find something and do what they need to do. Bit like, you know, employment rate. George Markoski You can’t have 100% employment rate either. You need, you know, a couple of percent unemployment rate, otherwise you’ve got no one to do jobs as well. It can’t be zero. And that’s the way it’s becoming. Since 2019, rents have increased 51%. That’s another $11,200 more per year on the average house, which is equivalent to a $215 pay cut for renters. Adam Albrecht Rents have gone up dramatically all around the country. George Markoski Yeah, 51%. It’s huge. Adam Albrecht Well, on the Gold Coast, the medium rental property up here is $1,000 a week. Like $1,000 a week just for an average house. George Markoski Yeah, yeah. It’s crazy. And annual rent growth’s not only gone up, it’s accelerated to 5.9% since September 2024. So now the median rent is approaching $600 a week, which is crazy. When I was living in Sydney back in the 90s, I couldn’t believe how expensive rent was for me at the time being, you know, 18 years old and trying to rent in Sydney was very difficult and I thought that was bad. But I reckon now being an 18-year-old in Sydney would be worse. Okay, so Australia is running out of rental stock. Rental listings have fallen to 12.6% over last year. And now Australia has the fewest rental properties on record. Demand continues to outpace available supply and rental pressure is likely to remain elevated. George Markoski What do you say about this, Adam? Because a lot of people are worried about the property market. George Markoski But what does this say to you? Adam Albrecht Well, it tells you that we’re in. It’s a downhill slope at the moment. There’s not enough properties being built. Developers aren’t putting enough properties into the ground. Lands not being developed quick enough and there’s all these immigration people coming in. So the problem we’re going to face moving forward, there’s not going to Be enough houses for people to live. And I don’t know, if you guys drive around in your capital city, I’ve noticed that around my capital cities there’s a lot more people living. We call it living rough, but, you know, homeless, basically. George Markoski Yeah. Now co living has become a lot more popular. Funny, because after Covid, a lot of people went against co living. They got sick of the people they lived with and everyone moved into different properties and now everyone’s moving back. Adam Albrecht Well, it’s affordability, isn’t it? George Markoski Yes, yes, because during Covid a lot of people got sick of living with each other for that long, being stuck inside, and now they’ve got no choice but to move back. So the thing is, you know, a lot of people are worried about the property market, but the fact of it is, it all comes down to supply and demand at the end of the day. And that’s what people have to realise. And there literally is no supply. This is a historic low, you know, this is just very low. So rents have never been higher and they’re climbing again. Now you look at this graph from 2006 all the way to 2026, you look at advertised rents, you know, they started up in 2006. George Markoski Look at the interesting thing, right, because a lot of people compare units and houses and wonder what the difference is. George Markoski Well, you can see here, there’s no difference. The lines are identical, aren’t they? The red line here is units and the blue line is houses. And they track almost identical. So it doesn’t matter if you have a house or a unit, your rental income would have gone up the same. Right. And the challenge is now is because we got a rental stock is a record low and construction costs are getting higher, so that’s limiting new supply for more. So how do you avoid higher rents? Especially when we’ve got a government, the Labor government, who’s really trying to destroy the property market as much as they can. Yeah. George Markoski So actual rental growth per city, and this is very fascinating when you look at this, because if you notice most cities, rental growth higher when it comes to units than these properties. George Markoski You look at Darwin, houses have gone up 8.9, but units have gone up 9.8%. And what that is that’s just playing catch up, because units lagged a little bit before Covid and now they’re catching up. So normal rent growth accelerated to 5.7%. Darwin rents are rising 10% a year almost. Adam Albrecht That comes back to supply and demand up there as well. In Darwin, like the. There’s A lot of land up there, but the government’s not releasing it to actually build properties. But then if they do build them, the cost of getting materials into Darwin is astronomical. So they’re very expensive. George Markoski They’re very expensive to build. But also, I mean, I think there’s a different code there. You have to make them cyclone proof or something. Yeah, yeah. Because I mean Darwin got levelled and got destroyed in a cyclone back in, what was it, back in the 90s, I think. Adam Albrecht 80S or 90s. George Markoski Yeah, yeah. And since then they’ve had a lot of laws and so it costs a lot more not only to get the materials but the standards are much higher. 25 Years of proof. Property doesn’t need a perfect market, just needs time. 25 Years of wealth for those who acted. So house price growth over 25 years, this is all the capital cities, basically. Houses specifically have gone up between 227% and 570% across all the major cities over the last 25 years. What does that mean? That either doubled twice or went six times as high. So you look at Adelaide, houses went up 570%. Darwin, they went up 227%. So Sydney turned every $1 of property into more than $5 in the last 25 years. George Markoski If you had a million dollar property in Sydney 25 years ago, it’d be worth 5 million now. George Markoski So this is not a short term cycle. Right. This is a long term cycle and this is called a property super cycle. And later on I’m going to share some numbers when it comes to Australia’s population and what they’re expecting it to be. Now look at units. Units and apartments rose 163 to 600% over the same period. You look at Adelaide, units went up 600%. They went up higher than what houses were. So what people don’t realise is a lot of people think that land builds value. Have you heard that before, Adam? Adam Albrecht Yes. The larger your land that. Adam Albrecht The more it’s going to increase. George Markoski Yep. These numbers prove that it doesn’t actually make any difference because people get caught up on do I buy a unit, do I buy a townhouse, do I buy a house and land? Those are the three things people choose from. And people go, well, a house and land has got more land. We’re going to make more money, right? Yes, that’s what they assume, but it’s actually not true. And the fact of it is it doesn’t matter if it’s a house, a townhouse or apartment, you can still make the same money. And the fact of it is, what people have to realise is it’s not the actual house, townhouse or the unit that doesn’t create the magic. What creates the magic is the supply and demand and buying. Right. George Markoski Because I’d much rather have a good unit than a shit house. George Markoski Or I’d rather have a good house than a shit unit. It doesn’t matter. And people got to get over that stuck idea of thinking that there’s certain things you need to make money. What you need to make money is you need the right property with the right structure in the top 100 suburbs. Right. Adam Albrecht I’ll give you a perfect example. I think most of us know who Harry Triguboff is. George Markoski Yes. Adam Albrecht One of the wealthiest guys in this country. And this is what he does, he just builds units. And that’s what he’s done since he. He was a migrant from overseas. He’s a billionaire and now he’s a. Yeah, and he’s just focused on the right areas and he’s just made his money out of. Out of units. George Markoski Yeah. And the thing is, what’s happened is because, and I’ve been telling this people for years anyway, because there was a lot of high rise in Melbourne, Sydney, Adelaide, the cbd. In areas close to the CBD that did very poorly, people lost money. Melbourne, CBD in high rise apartments. People had it for 20 years and made nothing because of that. They think, okay, all of them are bad. But people have bought houses and made no money in 10 years as well. Right. And what the difference is, you need to get the right property at the right price in the right area. And if you get the right area, it doesn’t matter what it is. What matters is you get the right property. Adam Albrecht I’m one of those people. I bought a property and sat there for over 10 years and it actually went down. I bought a house up towards the sunshine in the Sunshine Coast and that went down over the 10 years that I owned it. So it wasn’t the right place at that time. But I held it long enough to now it’s worth decent money. George Markoski And you know, out of my portfolio, all different types of property. They all do different. You know what I mean? There’s no one preference townhouse. I got units, I got houses. It doesn’t matter. So Australia’s immigration pipeline is locking demand for decades. Adam Albrecht What did our population get to. Was it this week or last week? I think we hit it hit a new high number. I understand our population in Australia, we,. George Markoski We hit a milestone. I Talked about it last week, someone typed in the chat. But look at this. The demand storey doesn’t end in 2065. You look at the historical projections and then the government forecast, right, by 2100 they expect our population to be 84 million people. Adam Albrecht We hit 28 million just to just 28 million. George Markoski We hit a new milestone, 28 million. And that’s a lot faster than we expected. I think we hit it 10 years early. Adam Albrecht Wow. George Markoski You know why? The Labor government are importing as many people as they can as fast as they can. And the thing is, migration remains the key driver of population growth in Australia. So housing demand is going to remain elevated for years and years to come. Oh, we hit it 25 years early, not 10 years earlier. Wow. So our target was by 2051 to hit 28 million in 25 years time. We hit it now and we’ve hit it right. So the 2003 forecast expected 28 million and Australia to reach that milestone in 2026. House demand is much higher than policy makers expected. Government likes more population because then you’ve got more taxes and you want more money. George Markoski However, what you’ve got to do is look after the people here first before we input too many people in Australia. George Markoski And I think migration is very healthy and good for a country like Australia, but we’ve got to keep our lid on it and really get the right people and the right amount of people and not go overboard. Because as what happens when you get more migrants, what happens is you get more growth, GDP wise, but per capita it goes down. So individuals become poorer, but the rich become richer. And that’s the whole point. So for example, with all this immigration, people that are property investors are going to become richer. People that got no assets, they’re going to become poorer because it’s going to be harder to buy stuff. Adam Albrecht I feel like Australia’s becoming more like America. The rich are getting richer and the poor are getting poorer. Like there’s no middle ground at the moment. Adam, Housing prices have just gone through the roof. George Markoski It is, it is the next 10 years the last opportunity for people to become property investors. What’s going to happen is there’s going to be people that are going to be brave enough to invest in property over the next 10 years and they’re going to be set for life. And the people that didn’t do it are never going to join ever again. They’re going to be intergenerational poorness forever. That’s the fact of it. This is the last opportunity because property Prices. People think they’re expensive at the moment, but they have never been cheaper compared to what’s happening. You look what’s happening to SpaceX, it’s going to be a trillion dollar company, right? George Markoski When there’s all these trillion dollar companies hanging around that so much wealth in the world, it all ends up invariably into property rights. The tide turns. George Markoski Did you hear about this now? Okay, CBA forecast is going to be rate cuts May and August 2027 and borrowing is going to come cheaper. Not only that, NAB have also predicted rate cuts. So now the banks are predicting there’s going to be rate cuts. So CBA expects the RBA to hold rates through 2026. Inflation is moving back towards the RBA target range. The economy is weaker than the RBA expected and rate cuts become more likely. As economic conditions soften. The case for rate cuts keep building. Per capita GDP has fallen back into decline. That’s what I was saying about per capita. Even though our GDP has gone up, our per capita has gone down. So what happens? George Markoski You get more people in your gdp, Gross domestic product goes up, but because you’ve got more people here, the average actually goes down. George Markoski So then unemployment is rising faster than expected. Well obviously we’re getting all these extra people living here, so it’s going to be harder for your jobs. Consumers remain under pressure from high rates and they’re not spending much. And this is the environment where rate cuts typically begin. So the per capita gdp has gone minus 0.1%, not much. Unemployment trend 4.3%. It’s pretty small. I mean you look back in the 90s, unemployment was 11% and property price still went up at 11% unemployment. But consumer confidence has gone down too. So what do you reckon Adam? They’re going to drop rates or they’re going to be. Adam Albrecht They have to restart stimulating the economy. But they have to let it calm down first. So basically we’re just still just on this climbing at the moment. But it can’t keep climbing the way it is. They put the handbrake on. But as the government just gave everyone a pay rise, the minimum wage earn is a pay rise. The Reserve bank has to look at that and go, well you’re now putting more money in the economy. How do we slow the economy down? It’s a double edged sword of what they’re doing at the moment. George Markoski And really governments don’t have a lot of options when it comes to control. Now this is the big issue at the moment, right? We talked about how there’s not enough rentals and they’ve fallen even more now. This is the other issue, the supply crisis. Dwelling construction is stalling while demand accelerates. Dwelling approves of falling further behind target. The target is 240,000 properties per year, and they’ve fallen to 200,000. So we’re already 40,000 in the hole right there. The housing gap. Since our BO said they were going to actually narrow the gap, guess what’s happened? Adam Albrecht Done the opposite. George Markoski They’ve done the opposite. The gap is getting bigger every month, every year. And what’s happening is migration. They’ve just approved even more migration, over 55,000 people recently. So it’s actually rising faster than supply can respond. So it’s funny, it’s like they’re saying, oh, we want to help everyone. We want everyone to have somewhere to live. But they’re doing the opposite. They’re like, okay, let’s get more migrants in. Let’s do this. It’s crazy. Now, the other thing is approvals have fallen 200,000. But just because they got approved to build doesn’t mean they’re actually going to actually build it, does it? Adam Albrecht I was going to say that there’s a lot of developers who have gone and got development approvals, development applications out there, but aren’t doing it because the cost is just. The red tape is one. And also the cost at the moment. George Markoski Yes. So this is the problem. Out of these 200,000 homes that have actually been approved, a lot of them, not a lot, but there’s a percentage of them where people have looked at the numbers and said, we’ve been approved, but we can’t actually build it because we’ll lose money. Adam Albrecht Or part B is finance is too expensive. Like, at the moment, development finance is anywhere from sort of 10 to 14, 15%. George Markoski Yeah. So, yeah, the money. So whether it’s materials, whether it’s staff, because it’s harder to get staff, whether it’s finance, all those things combined make the job a lot higher. That’s the fact of it. So what I want to do is interrupt this slide for a second because I’ve got someone on to introduce to everyone. Adam Albrecht Oh, we have a new family member, I’m guessing. George Markoski That’s right. This is the latest member of Positive Property. Okay, here we go. Adam Albrecht Little Maxi. George Markoski He’s just had a feed. Here he is. Say hello, Max. Hello. Here we go. Here’s a little Max. There you go. Hey, Max. Say hello, everyone. Adam Albrecht Hello, pet. George Markoski There you go. Okay, well, he’s probably. Yeah, there you go. So he’s heard me talk about property all the time, so it’s probably sick of the death of listening about it. So I’ll let him put him back to his nanny and I’ll continue on. Here we go. Thanks. Adam Albrecht That’s pretty cool. I’m sure that’s changed your perspectives on life a little bit, George. George Markoski Yeah, it has, certainly. So we’re projected by 20, 28 to 29, there’s going to be a shortfall of 315,000 homes currently. So that’s the size of Canberra. That’s big, isn’t it? The shortfall. The Mideast conflict is pushing construction costs up and new homes are going to cost an extra $50,000 to build. Adam Albrecht Now I remember coming out of Covid and we had, obviously we had a few price increases with builders coming out of Covid and I made it pretty clear, I said, guys, the best time to build is now. Yes, prices will go up and then what’s happened? Prices have gone up again. So the best time to build is now because in five years time, three years time, it’s going to be more expensive than what it is now. George Markoski Well, it’s going to cost 50,000 more. So this is what people don’t realise because I’m going to try to explain this concept to people. Replacement cost is the floor, right? So let’s say, for example, if a property costs 400 grand to build, then the floor can’t below 400 grand for that property because how are you going to get it for less than what it costs, right? It’s impossible, doesn’t work that way. It’s not like a car, right? Car’s different. With a property, the replacement cost of the floor. So what happens is the new homes that could cost 50,000 more extra to build, that’s a 50,000 on top of the floor. George Markoski So if you got a house now, brand new property that you’re buying and it’s costing 600,000, well, when they cost 50 grand more to build, that’s going to be minimum 650,000 to buy in the future. Regardless of what happens to the property market. It doesn’t matter. That’s what people need to realise. But you look at this, what you mentioned before. Interesting, Adam, that was very astute. Go back. Okay, so material supply cost extra, 15,000, labour shortage, 20,000. And what you said about finance costs another 10 grand. And that’s the problem. You add all those things. Adam Albrecht I would say that’s on conservative side. George Markoski Yeah, that’s conservative. But the finance costs, that’s per property though. Right. So the finance cost per property has gone up, materials costs have gone up because of the war and labour shortage is because we’ve got so many projects the government’s doing. They’ve taken all the labour. Right. Adam Albrecht Especially in Queensland with the Olympic Games coming. George Markoski Yeah. You can’t get tradies anywhere anymore. They will go to great jobs that come down. Adam Albrecht Even me, I, I needed a new hot water service, could not find a plumber like I’m in the industry. I couldn’t even get a bloody hot water service installed. George Markoski Yeah, yeah, there you go. And the construction industry can’t build fast enough. So apartments take 10 quarters to complete. Now that’s a long time, isn’t it? Adam Albrecht It is. George Markoski What’s that? Ten quarters. Adam Albrecht Two and a half years. George Markoski Two and a half years to build. So if you were to get something built now, you’re saving two and a half years. Adam Albrecht This is the problem like and this is what they’re doing. This is why. And once again I’ve harped on about this every time we catch up about sunset clauses. My opinion is do not shorten your sunset clause because if it takes two and a half years to build and you got a two, a three year sunset clause, developer potentially can hold off for the extra six months and then put the price up to $300,000. And you’ve missed out on that capital growth. George Markoski Exactly. Adam Albrecht Keep your sunset clauses as long as you can. George Markoski Yeah. So since 2009, building times increased by more than 70%. How has that happened, Adam? Like you know the industry better than anyone else. Why is it so much longer now? Adam Albrecht It’s labour, I suppose. I think labour is pretty much, you know, the driving force behind anything. George Markoski Yeah. So with build times being longer, you look at those 200,000 approvals, right. It’s going to take, well one with the extra expenses, a lot of them, percentage of them aren’t even going to get it even happen. Right. Because they’re not going to work money wise. Then on top of that, because it takes longer to build, it’s going to take ages for them to get it. Adam Albrecht That’s right. But then like I said, you get cost blowouts and then it puts a developer under pressure, eats into his margin and then you’re going to find developers going bankrupt as you do. Like, you know, I don’t know if you guys watch A Current Affair, but almost weekly there’s another developer going down. George Markoski There is, there is. So there’s less developers doing deals and doing jobs so the supply is getting constrained Yep. And build times will keep rising. It’s getting longer and longer. So yes, apartment builds now increase 50% more. Townhouse construction that takes 50% longer. Every delay slows delivery. The 1.2 million target looks like it’s going to be out of reach completely. And apartments are no longer the affordable solution because they cost more to build now. So now apartments cost more to build than houses and developers can’t deliver affordable housing at a loss. So that means it’s even harder because used to be cheaper to build but now they’re more expensive to build. Yeah. So housing construction costs have risen 130% since 2004. Adam Albrecht Yeah, I’d say that’s even, you know, even more than that. Since 04 costs have gone up dramatically even since sort of Covid days since 2018, 2019. You know you were looking around that 1100, $1200 per square metre. Now you’re looking at 2, 2 to 2, 6 per square metre. That’s only in the last sort of six, seven years. George Markoski Yeah, I mean you look at that graph, it’s just gone right through the roof. Look at that. Adam Albrecht It’s only going one way. I think there’s a 6% industry increase. About a week or two ago our industry went up about 6% per contract. Yeah. George Markoski Okay. The government playbook. Yes. So Albo built his wealth with the rules that he changed them for. You have a look at this. Recently Albanese caught up with Christopher Luxon, the Prime Minister of New Zealand and tried to sell him on the idea of doing capital gains tax. And this is what he said to him. We don’t feel it’s appropriate for New Zealand and we feel pretty strongly about it. We just think a capital gains tax being introduced to New Zealand would be wrecking with for our economy. Interesting. Now they said if you want to come to New Zealand. So Albanese, he pocketed millions offloading a $5 million property using the 50 discount. Then he bought a $4.3 million beach house to negative year at 1600 a week. George Markoski And once he set up his own wealth he decided to grandfather all the stuff that he did and then punish all the new people. Lovely, isn’t it? So it’s funny that he used all these rules for himself, made millions and then there you go. Adam Albrecht Do you think once a new government gets in they might turn overrule these rules or do you think they’re here to stay? George Markoski Look, it’s very rare for a government to overturn rules. I mean they haven’t put them through yet, have they? Anyway, I don’t think they’re fully. Not fully through yet. Maybe liberals on or one nation might run on saying they’re going to reverse it, but this is the reality at the moment. Australia’s currently got the highest tax in the world, which is disgusting for many reasons, but one of the main reasons is if you want to attract talent, if you want to build your wealth, what you do as a nation, you reduce taxes and get the smart people in, right? So you look at Austin, Texas, right? What they did is they reduced their tax write down. George Markoski And now Elon Musk, all the billionaires, everyone’s gone there, their economy is thriving, they’re doing really well. George Markoski Dubai became big because of taxes and we’re doing the opposite. What we’re doing is now we’ve destroyed the startup scene, we’ve made it very difficult for the young to actually get involved and make money. But not only that, let’s say, for example, you’ve got two people. One person from overseas buying Australian shares and one person from Australia. The person from overseas can buy Australian shares and guess how much we’ll tax him on his capital gains? Zero. Zero. Nothing. Adam Albrecht There must be some tax. George Markoski No, no, zero. You can be a foreigner and buy Australian shares and get zero tax, but as an Australian, you’ve got minimum 30%. Adam Albrecht I had a stat. Out of every 8,000 millionaires in this country, there’s 2,000 of them looking for offshore options to move their money. George Markoski Absolutely. It’s ridiculous what the government’s doing. The government is destroying Australia two ways. Increasing our taxes and making it harder for young people, startups and people to actually make money. Two, they’ve got a crazy obsession of immigrating as many people as they can into the country, which is not good either. Those two things are destroying our country. I don’t know who voted the Labor Party in, but I don’t know. It’s the worst thing that’s ever happened to Australia, if you ask me. He’s done nothing good, everything bad. So five convergent forces are creating a rear investor window right now. Property Investment opportunity index. George Markoski Right, we’ve got supply constrained, so 95 out of 100, we’ve got strong rental demand, 8 out of 100, population growth, 9 out of 100, rates falling and crime, suburb shift. George Markoski So basically this is all lined up for the right people, because what’s happening at the moment, the news is telling people property prices are going to crash. It’s going to be the biggest thing in history. Oh, my God. It’s going to be bad. You’re probably hearing it everywhere. Everyone’s hearing it. That’s why you need to tune in every Thursday night. Talk to me. Because it’s not going to happen. Could there be a correction? Yes, but there was a correction during the GFC. Me, Adam, both my, both you and I bought during the GFC. We made money. Our clients made money. Then APRA came in, everybody said the property price going to drop. There was a correction. We both bought. We made money. COVID. We bought. We made money. George Markoski Our clients made money. Adam Albrecht You are one of the only few people who said buy during COVID. George Markoski Exactly. Our clients made crazy money. Crazy money. And I’m always buying when people are not buying. Right, because that’s the whole point. That’s what Warren Buffett does, right? He says be greedy when people are fearful. Be fearful when people are greedy. At the moment, people are scared of buying. But this is a great buying opportunity. And I mean you and I, we’ve just signed up to buy 51 this week. We’re going all in. That’s not just one or two. We’re putting our money where our mouth is, right? We’re not just talking about it. We’re doing this. And that’s the conviction. You know, when we did those 120 during Covid I was telling people, right? People are going, wow, are you scared? George Markoski Well, we’ve made a lot of money out of Those and these 51, we’re going to make a lot of money out as well. George Markoski That’s the fact of it. So the property investor timeline, now is the time to get in. And this is the thing, people want certainty before they invest. But when everyone’s certain, that’s when it’s too late. Because this is going to be the last boom we’re going to have for a long time. This next boom, it’s going to be the biggest as well. So let’s talk about getting a property for your kids without paying for it. Now what happened was this Friday there I was at the hospital and I had my son in my arms for the first time. You know, I wasn’t prepared for it. It was are pretty emotional, pretty crazy. It got me thinking and I was thinking, I’m lucky, I’ve made a lot of money, I’m successful. George Markoski So it’s going to be easy for me to help my son. George Markoski But I was thinking, what would I say to my 20 year old self, 20-something self. Because in my 20s, I remember I was living in Sydney, I was on a friend’s living on a friend’s couch, broke. I was in business and my business partner ripped me off. I was $50,000 in debt, living on my friend’s couch with nothing. Now, if I had a magic wand and I could go back to the 25 year old self that I was there, I wouldn’t go and give him money, right? What I would do is I’d give him an education to get involved in property like he did. George Markoski Because what happened was shortly after that I got back on my feet, saved the deposit and I bought this property in Adelaide, an old bluestone villa that was over 100 years old. George Markoski Boy it on the phone for $$178,000. Now it’s worth $1.5 million. And at the time I was very nervous and shitting myself, wondering if it’s the right thing to do. But it’s funny how hindsight makes it clear. I mean, now it’s worth one and a half million dollars. It’s crazy. Who would have thought $$178,000 property worth that much? So what I want to do is share the principles on legacy and how to help your kids actually get ahead. Okay, let’s go through this. So the ladder just got pulled up. The Median age of first home buyer now is 36 years. It used to be 31 years. It takes 11.2 years to save 20% deposit. It was nine years back in 2015. George Markoski 40% Of first home buyers get help from mum and dad. George Markoski $35 billion a year via the bank of mum and dad a a top five lender in Australia. So here’s the truth. Hard work alone doesn’t buy your first home anymore. Strategy does. And your kids strategy starts with you. So there’s two phases, one outcome if they’re under 18, you build the foundations, get money working from day one. Money habits taught at home, the game learned early. If they’re 18-year-older, it’s even better because you can hand them the edge. A property education and the family backing them. The biggest gift isn’t money, it’s knowing what to do with it. So let’s go through this and I had a good think about this and what I would do for my son at that age. Adam Albrecht And in my opinion they should be teaching this sort of things at school at like even at the school level, in the high school levels about future investing. Because yeah, you can learn as much as you can in business school, in business class, but they need to be teaching people about this. George Markoski Yeah, exactly. I agree, I agree. So this is what I’D start if I had a kid under 18, which I do. What one is a kid saving account or high interest their name on it. It won’t make them rich, but it makes the habit. They watch it grow, they learn the game. You know, $50 a week from birth at 8% will give them 130,000 by the 21st birthday. That’s the deposit investment bond or share ETFs. Now, this is the challenge now, because if you make money on shares and ETFs, you’re gonna have to pay capital gains. So the game has changed, right? So this is one thing that really got me turned on about property. George Markoski From when I was like five years old, when I first played the game Monopoly at a friend’s house. I just loved it. Adam Albrecht And I used to cheat. I used to cheat playing. George Markoski Oh, really? No, I didn’t cheat, but I was very good. I liked winning without cheating. And I was very good at it because I knew what to buy, how to buy it. From an early age, I was damn good. I’ve never lost a game, Monopoly, in my life. I loved it. I had so much fun buying property and being a. Being a landlord. And my friend said to me, goes, oh, you know, adults do this in real life. And I said, you know what? That’s what I want to do when I grow up. Be the Monopoly man. Funny that I thought of that, right? So what can you do? Well, pocket money is earned and never given. Chores, jobs, hustle income, you know, teach them that. George Markoski Let them in on family money talk. George Markoski Kids learn money from watching you show them the bills, the budget, the why, first job, first budget. The day they earn, they split it. Spend, save, invest every single penny. You know, Monopoly taught me more about property than school ever did. You know, buy assets, collect rent. Don’t park your money in dead square. The kid who owns the board wins. My first paper round I had when I was 7 years old and I started my own business. So that lesson never left me. The biggest gift for an adult child isn’t a deposit. It’s a property education. A deposit buys them a house, and education builds them a portfolio. Hand the kid $100,000. You’ve helped them once. Teach them how property works and you set up your grandchildren. George Markoski That’s the thing, you know. Feed someone a feed someone a fish and you feed them for a day. George Markoski Teach them how to fish and you feed them for a lifetime. That’s right. So then pull the family levers. Go guarantor. The equity backs part of their loan. No cash leaves your account. LMI disappears, use a limited guarantee and release it the moment their equity allows. That’s the number one way of doing things. This is what I suggest, the best way to do it. Or you can gift them a deposit. It’s clean and simple. Banks want to it documented and usually season three months of genuine savings. Watch Centrelink gifting rules. If you’re near pension age, family loan, lend it instead of gifting it. Written agreement, agreed terms or co buyer together. George Markoski Some of our clients have done that and a lot of our clients have done one of these or these other strategies. Right? George Markoski And you know, basically never guarantee more than you can replay about selling your own home, full stop. So make them work for it. You know, what you can do is match their deposit dollar for dollar, right? Don’t just hand it over, make them run the deal, make them learn. You know, a lot of our clients, they’ve actually got their children on our legacy programme and join our programme so they can actually learn about property and become investors. Because by doing that and using equity, their kids are doing the work. Because you can just buy your kids a property. But are they going to appreciate it if you actually get them to invest it and do the work, then they become owners. George Markoski They are going to learn and become more out of this. Because education before equity, right? That’s the important thing. George Markoski And never give them 100%, don’t just give them a house. Right. They have to have skin in the game. The legacy ladder at birth. Open the best bond. Age 5 to 30, 12. Monopoly knives. Pocket money is earned, not given. Age 12 to 18, first job savings match on, bring them to inspections. 18. This is where you can get them started and do some deals. And it doesn’t matter if you start late, it doesn’t matter if your kids are over 18, they’re 21, 25, 30, 35, you can still do this. It’s never too late. So three moves to make this week. Open the account book the money chat, sort the education first. Every year you wait, the ladder gets pulled up another run. The most expensive words in property. George Markoski Let’s wait and see how many times. Adam Albrecht We heard those words. Let me think about it. See what the market does next year. Okay, well, let’s wait another year. George Markoski Yeah, Yep. And then people just get locked out for life. But next 10 years, people that don’t get on the property train are never going to get in the property train. That’s the fact of it. So this programme, the whole legacy on how to do this is built for my son. Yours is ticking we’re going to do some Q and A later as well. About this, if you want to get your kids started in property, type in legacy in the comments and my team will reach out to you. Okay. Next we’re going to do a case study and then go to our private group. Okay. Filomena Guercia and Daniel Commisso. George Markoski This is our spotlight this week and let me show you what they’ve done and then if they’re here, let’s bring them on. Okay. So they got an investment property in Caboolture. George Markoski Three bedroom, two bathroom, one car. Paid $584,900. They used equity to pay 10% deposit. Used equity. Very smart. They settled in December 2025 for 584 and now it’s worth $750,000. So they made $165,000 in six months. Not bad. I mean, $165,000 in six months, that’s more than most people make in a year. They’ve made in six months. And I don’t know if they’re here, but we’re going to go through Q and A and then we’ll go into our private group. Let’s do this. Okay. A lot of people don’t understand sunset clause and may take it as a negative. But please explain further about why it’s an advantage to the buyer. Can you explain exactly what it means? Adam Albrecht That’s almost a session on itself, but yeah, we could do the short version, the real short version. So when you enter a contract with a, say, an apartment, townhouse or something like that, it’s 10% down, no more to pay to completion. There will be a clause in that contract which is called a sunset clause that will give you an out if you want to exit the contract. If it’s not built in a certain time, pay. But it also gives a developer an out. So, for example, you’re buying a house for 500,000, you’ve got a two year sunset clause. It takes more than two years to build it. Once you get to that two year point, the developer can take it back and resell it for 700,000. Adam Albrecht Where my thoughts have always been, have a long sunset clause. Adam Albrecht Sit back and ride what’s actually happening with the market. Because we’ve seen it too many times, developers coming through and taking properties off people because the sunset clause has expired. So it’s definitely, it’s not a negative. But you just don’t want a short or a shortened sunset clause. George Markoski No, because the challenge is, I mean, one, we’re buying property to make money, so you’d assume the property is going up. Adam Albrecht Otherwise, if you’re putting 10% down, just sit back and wait. If it takes two years, three years, four years, you’ve got your 10% in. It’s only. You’ve only paid 10%. George Markoski Yep. And we’ve had people that have shortened. Adam Albrecht Their sunset clause and the developers caught it. George Markoski Right. And against our wishes. Yeah. And our advice. And I think he’s gone out like a. No, no. We had one client. This is what he did. He bought his own lawyer and accountant in on the deal. This happens sometimes and the challenge is. Right. I don’t mind people bringing in their own team, but the team aren’t switched on to everything property because they don’t do it often enough. Right. And this lawyer and accountant went through the contract with fine-toothed comb, but we go through the contract anyway. Right. And we look at it and they’re pretty standard and we try to just keep it advantageous to our client. So what they did is they said, oh, the sunset clause too long. George Markoski And this client spent thousands of dollars for this lawyer to go through it, instead of our typical lawyer and his accountant. George Markoski And he spent thousands of dollars, changed the contract or shorter sunset clause because they said, you’re better off doing that so you’re not stuck for too long. The property went up 400 grand and he lost $400,000 because of his lawyer and accountant that he paid big money to come in on top of what we’re doing. Because if you’re already paying us for education, don’t pay a second person who knows less to contradict what we’re doing because it’s going to cost you money. It was a shame, but that’s life. That’s exactly what happened. Rebecca said, would you still recommend buying property as land only? As land only? No, because there’s no income land banking. The problem with land only is that’s. Adam Albrecht You’re paying rates, you’re paying mortgage. George Markoski Yeah. You can’t hold it. You can’t hold it. So the key is we are looking for property that’s going to go up in value. Right. We want property that’s going to double next seven or 10 years. And what we need to do is get the right property we can afford to hold and that’s how we look at the price range and what we’re doing in the structure. Someone said, would you still recommend buying Queensland after all the recent growth it has seen? Adam Albrecht It’s got a long way to go. George Markoski It does. As move forward of labour budget reform on CGT and negative gearing. Would it be wise to sell the principal place of residence or retain it for equity? Good question. I would not sell it if I had a choice. I don’t want to sell anything. So this is what we’re going to do. We’re going to go in our private group and discuss things a little bit more intimate and talk about legacy. And I’m going to talk about exactly how I can help you and your children invest in property. Right now, we’re going to say goodbye to the live group and we’re going to see them next Thursday. George Markoski Everyone else in the live group, thank you for watching on our podcast on YouTube, type in legacy if you want help, and our team will reach out. And now we’re going in our private group.