The Great Landlord Scam: CGT & Negative Gearing in 2026

George Markoski Hello and welcome. Your host, George Markoski and your co-host, Christina Markoski. Hello and welcome. Christina Markoski Hello. George Markoski Yes, the great landlord scam. As you know, every week I come to you and do the what’s happening in Australia this week? We’re not doing that. I’m saving it up for next week because this week I want to go on a rant. I’m going on a political rant. I’m going to talk about capitalism, communism. That’s what we’re talking about today. Because I think it’s important and I think people need to know what’s going on. Christina Markoski Yeah. I’m curious what’s happening in Australia right now. George Markoski What’s happening in Australia? A lot is happening politically and that’s why I want to talk about this because I think we’re at a turning point where we need to really think. Now, I don’t like talking politics a lot, but sometimes I’ve got to get involved. What can I do? Christina Markoski Sometimes it’s a necessary evil. George Markoski It is. Christina Markoski When it involves, you know, the economy, making money, property investing, it’s all related in some way. George Markoski Yeah, exactly. And that’s what we’re going to talk about because I’m going to have my little rant and that’s what we’re going to do. Now, before we start, I want to talk about what we’re doing. We’re doing a rebrand. So as you know, we’ve been serving the Australian people, teaching Australians how to invest in property for over 20 years now. And I’ve been doing it with different formats and, you know, now we’ve got a podcast. We do our weekly podcasts live here in our Facebook group, but also in our Zoom group with our members. And we’ve had different names for different things, and I wanted to unify everything so it’s really clear. So it’s going to be the same value, same everything. The only difference is going to have a little different wraparound. George Markoski So basically, our Facebook group name has changed to Positive Property Investors Australia, because that’s the exact people that we help, people that want to invest in property in Australia. That’s our target market. That’s the people that. That are our people, and that’s what we’re doing. So that’s what we’re going to call it. Christina Markoski Positive Property Investors Australia. I love it. Simple. George Markoski Positive Property Investors Australia. Christina Markoski Exactly what it is. George Markoski You forgot the investors because they’re investors. Christina Markoski Positive Property Investors Australia. George Markoski Yes. Yes. That’s what we’re doing. And we’re also going back on our podcast to Positive Property Show by George Markoski. Christina Markoski Beautiful. George Markoski Yes. Now, we called it Money for Life. Yeah, yeah, exactly. Well, we called it Money for Life because really, at the end of the day, what are we looking at getting, right? We’re looking at helping people get Money for Life. However, people aren’t looking for Money for Life. They’re looking for property investing, and then they can’t find us. So now we’re still helping people get. Christina Markoski Money for Life, even though that’s what people really want. George Markoski Yeah, but people really want that. But see, there’s different ways you can make Money for Life. right? The fact of it is the reason. And this. I mean, you look back at my journey and property. I fell in love with property a long time ago, right? And I remember the first time I heard about property investing was as a kid. I was like five or six, and went to a friend’s house and had this thing called Monopoly and we’re playing Monopoly. And I was like, this is so much fun. I love it. right? I really enjoyed it. And I loved getting rent, and I loved going past go. And I had the little dog, and I loved the little dog. It was really cute, right? Now, I like the car for some reason, but anyway, I love the dog. George Markoski And my friend was saying, oh, people do this in real life when you’re an adult. And I go, wow, that’s so cool. Because, you know, at that age, you. You look at movies and things, you look at adults, and some are working in factories, other people are doing other things. I’m thinking, I’d rather be playing Monopoly as an adult. That’d be pretty cool, getting paid to do that instead of, you know, working in a factory. So I always wanted to be a property investor. And, you know, play Monopoly because I thought that was fun. So I think it’s interesting with your kids and next generation, by framing things the right way, it can happen. This all happened from a game with me, which was amazing. The thing is, I mean, I, you know, I came from a family that were immigrants and they. George Markoski I didn’t even know English when I went to school, when I went to primary school. I was born in Australia and I knew that we didn’t have a lot of money and I didn’t like it, didn’t like not having money, and I wanted to make money, but I always knew I wasn’t going to inherit a fortune or anything else like that. And when I was a teenager, a lot of my friends, because my parents put me through a private school, they spent a lot of money and it was worthwhile for them. And a lot of my friends, though, they had lots of money and, like, they’re all getting brand new cars. I’m like to my dad, I want a car. I was 15, I want a car. I’d love to get a car. George Markoski He goes, good, if you want to get a car, get a job and. Christina Markoski Work and get a car and buy it for yourself. Yeah. George Markoski And I was like, God, I hate my dad. I hate him so much. right? Not fair. Everyone else is getting a car and I’m like, not getting a car. It’s so unfair. Right, that’s what I was thinking. But learning how to fish. Learning how to fish is very important. right. And I know kids, friends that had. Christina Markoski And when you say learning how to fish, we’re not talking about seafood here. We’re talking about learning the skill of making money and actually earning a dollar for yourself. George Markoski Yes. Because the thing is, it’s about not getting handed something, a handout. And that’s why I don’t believe in government handouts. This story’s tying back to my philosophy of life, by the way, and going back in. I mean, what we’re talking about now is we’re talking, just so people clear, we’re talking about the CGT capital gains tax and how the government is attacking that and trying to cut that out at the moment as a money grab. That’s what I’m talking about. I’m just talking, telling a little bit of a story to explain how this works. Because you’ve got two types of governments in Australia. You’ve got, you know, usually with the left got Labor and the Greens, and we’ve got the right, the Liberals, the Coalition and the National Party. George Markoski And now, funny enough, what’s happened is we’ve got Pauline Hanson, who’s become very popular, and there’s a lot of media about her and a lot of people are thinking she might be their saviour. And what happens is I see this a lot because I’ve been following politics for a long time. I find it fascinating because politics, the economy interests me a lot because it’s all about money. And money is important in our society. And that’s what I specialise in. And I need to be on top of politics because that’s going to affect the future of investing. And what happens is people go to the left, they lean to the left and then nothing happens and it’s bad. Then they go to extreme, to the right and bring the other way. And it doesn’t get much better. George Markoski And we never get someone in the middle who’s balanced, that can actually think on both sides. You know what I mean? And that’s the thing, that’s what I find. But the one thing, when you look at politics in Australia and what now and Labor and the Greens, they come up with some cockamamie ideas when it comes to money and tax and things like that, right? Very communist cockamamie is my polite word about swearing on this podcast. Because this is, you know, and so what they’re saying is they want to help renters and they want to help people own property. And they’re saying the best way to do that is cut out the capital gains tax concession. Because when, what happens if you own a property for more than 12 months, you actually get a 50% concession on the capital gains tax. George Markoski So what a capital gains tax means is if you have a capital gain. So if you buy something, if I buy a property for $500,000 and goes up to 700 and I sell it for 700, I’ve had a $200,000 capital gain. And the government, what’s their cut? I mean, I’m the one that invested, I’m the one did everything. But the government wants their cut out of the capital gain. And what happens is, normally what happens is you get a 50% discount. So instead of paying on $200,000, you’re only paying $100,000 half of it. So you get a bit of a discount, the government gets their share and you get a bit of a discount. And it’s a win for everyone. Because what that does encourages people to invest in property because at least then when you sell it, you can actually make a profit. George Markoski But what they’re doing now is they’re saying we want to help more people own houses, we want to stop help people with that, are renting, get property. And what we want to do is we want to cut out the CGT. They’re probably thinking about cutting it down, 25% discount instead. That’s a lot of money. What the government’s really doing though is they are actually just trying to get more cash. That’s what they’re really doing. Are they really helping anyone? No, of course not. Christina Markoski There’s always a hidden agenda. George Markoski Well, the thing is, that’s why I’m calling the big landlord scam, because the fact of it is landlords are not these rich billionaires. Christina Markoski They try and paint them as the villain, you know, to the reason why people can’t get into the property market, but that’s just got no truth to it at all. George Markoski Yeah, yeah. So basically the average investment property owner owns one property and the average wage if they own they earn 91,000 a year. So it’s a nurse or a Sparky, something like that. right. It’s not some billionaire. Now the thing is we’ve got foreign companies like BlackRock coming into Australia and buying lots of property now and they get discounts, they don’t pay capital gains tax, they get very, they get looked after. So what the government’s doing is saying, okay, let’s get the middle class to pay for everything once again like they always do. And they’re saying we’re going to let all these big international corporates come in here and buy residential property and buy all our properties and they’re going to get massive discounts and they’re going to get to own everything and that’s what they’re doing in America at the moment. George Markoski What’s happened is the last five years before five years ago, corporate companies didn’t buy residential property, wasn’t happening at all. Suddenly they have. And part of the reason is the last 10 or 20 years, the first world has seen property price go up quite significantly where it was just a bunch of fringe investors, you know, doing this, mums and dads and people like myself and yourself in our community, investing in property, providing housing for other Australians because the government can’t do it. We’re doing their job for them. And now the big corporates, those greedy bastards have come in and they’ve decided they want to take over and what they want to do is they want to buy all the properties and get everyone to be renting. George Markoski Really, at the end of the day, the agenda of the big corporates is you’re going to own nothing and be happy. And what we’re doing here is we’re fighting against that and saying, no, we’re going to own it all. Because I’d rather people like ourselves own property, rent it out to people, than big corporates own everything and control everything. right. I really a big proponent of small business. And really, when you’re a property investor, if you own one property or five properties, that’s a small business that you’re running. Christina Markoski Absolutely. George Markoski And really what you’re doing is you’re providing a great service and everyone wins. But when the big corporates buy everything out, not everyone wins. The big corporates win because then they’ve got a monopoly. And then why the game back to Monopoly and why Monopoly is bad? Because if you’re playing Monopoly and someone owns Park Lane, Mayfair, Oxford and the whole street, you’re going to have to pay lots of money and you’re going to end up broke. Christina Markoski Yeah. There’s no fair. George Markoski The government is not helping the renters at all. At all. They’re just doing a big grab of cash. They’re going to grab this cash off the mum and dad investors. And then they keep talking about negative gearing, how they want to get rid of negative gearing. Same thing. So this is the issue. The Greens and Labor have just got the stupidest policies when it comes to money. They don’t know what they’re doing at all. And at least if you go liberals, at least they’re not going to take away your capital gains tax or your negative gearing. Are they good? No. Are they better than Labor? Yes. Unfortunately, we don’t have any amazing politicians. Christina Markoski The lesser of two evils. George Markoski Well, look, it’s unfortunate that you look at most Western democracies. We don’t really have many good options at all. You look, it’s very rare for a country to have amazing politicians that actually work for the people and do a great job for the country. And you look at places like Norway. right. In Norway, the government went in and they made sure that all their resources, they got good tax out of their resources. All the big mining companies coming in and taking their resources and they created a fund for all the people in Norway and they’ve been investing all around the world and it’s the biggest, one of the biggest funds in the world. It’s worth trillions of dollars. Christina Markoski That’s amazing. George Markoski Yes. Because your resources really are owned by everyone in the country. Christina Markoski Yeah. George Markoski And that’s what should happen. Christina Markoski Why do they attack negative gearing so much? Doesn’t it stimulate growth in jobs? George Markoski Yeah, yeah, it does. It stimulates growth and jobs. But this is why they attack negative gearing. I’ll tell you why. What happens with political parties is what they do is get the middle class to fight against the people with less money. So you got the poorer people as a group, you’ve got the middle class. And they try to say that’s your problem. All the rich at the top, everyone ignores them. You look at them, you look at what happened in Adelaide in South Australia. So they changed the land tax. And what they did with the land tax is they made it. If you were really rich and you own lots of land, you pay a lot less money. But if you’re middle class, you pay a lot more money. Christina Markoski Yeah, that’s crazy. George Markoski Yeah. And they pushed it through and that was the liberals. They did some sort of dodgy deal. Christina Markoski Same Totally. George Markoski But that’s what they did. And the fact of it is, I mean, you know the really stupid. Christina Markoski That’s why a lot of people jump ship. George Markoski Well, yes, a lot of people jump ship. Christina Markoski Stabbed in the back. And they had. George Markoski They did, they did. And that’s what happened because there was a lot of wealthy middle class people in Adelaide that said, forget this. And they said, let’s teach them a lesson. But the problem is that’s what happens. You bounce backwards and forwards. And what do they do? They keep helping the corporates and everything else. So what do we do? What do we do? Christina Markoski Well, what do we do, George? George Markoski Okay, what we do? Christina Markoski How do we win when the system is rigged? George Markoski Well, one, we don’t vote for those idiots that want to take away our capital gains tax reduction. We don’t vote for the idiots that want to take away our negative gearing. Step one, that’s one thing we can do. right? Because what happened when Labor announced as an election promise they were going to cut negative gearing and what happened? They lost that election really quick. They’ve done it twice now. So that’s. Christina Markoski You think they would learn. George Markoski You think they’d learn. Exactly. But what do we do? Well, this is what we do and this is the important thing. We stick to the principles that we abide by and our Money for Life principles. That’s what we do. The only way out of this is to accumulate properties like your future depends on it. Seriously. The fact of it is there’s going to be winners and losers and the future is going to look really bad or really good for people. And AI, that’s another Thing I need to talk about. So what’s going to happen is we’re going to have a group of people that have and the have nots. That’s it. George Markoski Society is becoming more divided where there’s a bunch of people that are really rich and more people at the bottom that are poor and it’s splitting and the opportunity to get ahead is getting harder. Christina Markoski Well, the divide’s getting greater every single year. George Markoski Yes. And the whole point is, what can you do? Well, there’s only one thing you can do. We live in a capitalist society. If you can’t beat them, join them. You have to become a good capitalist. You’ve got to be smart at what you do and you’ve got to invest. Because if you want to win the. Christina Markoski Game, you’ve got to know how to play the rules. George Markoski Yes. Now, I’ll tell you something else about capital gains tax. Even though it’s a bit unfair and it sucks, the good part is that in our program, we don’t sell. right. So we’re not going to pay it anyway. Right, Exactly. Anyway. So can I sort of do this? Christina Markoski We’re gonna blur that out. George Markoski We’re gonna blur that out. I didn’t do it the whole way. Okay. We’re not going to pay it anyway because. And this is not avoiding tax. If you don’t make a capital gain, you don’t have to pay it. That’s the beautiful. Christina Markoski Exactly. George Markoski Now, the thing is, sometimes you have to do it anyway, you have to sell because there’s different circumstances. But the thing is, what we do in our program is one of our principles is we don’t want to sell because an asset is worth more keeping it. And even the 50% discount was too much for my liking. As in not enough. And I didn’t want to sell anyone pay capital gains because the fact of it is, if you get a property and it’s gone up in value and you sell it by the time you pay capital gains, it’s actually cheaper to refinance it at 80% LVR and then get the money out and you get to keep the property at the same time. George Markoski And what I think to myself is, and this is what I always think, my principals, I think, what would Robert Kiyosaki do? What would Elon Musk do? And what do they do? Do they sell their assets? Christina Markoski No. George Markoski Elon Musk pays zero tax. He’s the richest man in the world. Why he doesn’t make any money. right. Christina Markoski Sounds counterintuitive. George Markoski I don’t know what he’s worth. But he’s worth a lot of money. The richest man in the world and he doesn’t actually make any money and he doesn’t pay any tax on his money. So what does he do? What he does, he borrows money against it. That’s crazy. $849 billion. Christina Markoski That’s insane. George Markoski And how much tax does he personally pay? Zero. Christina Markoski Yeah, probably zero. George Markoski There you go. There you go. And so you’ve got to do what the rich do. What do the rich do? They don’t sell. And therefore the capital gains tax is not going to. Christina Markoski Really doesn’t even come into the equation. George Markoski It doesn’t. It doesn’t come in the equation. And every now and again you do, you take a hit. It doesn’t matter. The rest of your property is going to balance it out. Christina Markoski You have enough properties that you’re still making gains on. George Markoski So that’s right. So the key is, you know, the principles stay the same. The principles are, what you do is buy in the top 100. So you buy a property, it’s going to be doubling consistently every seven or ten years. Then what you do is you get the right structure so it doesn’t cost you too much and use your tax deductions as much as you can. You get interest only loan, you get your ITWV, you get your depreciation schedule, you get a team around you of experts to manage it all for you. And then you sit back and wait and it grows. George Markoski And I was talking to Charmaine the other day actually that’s our head property coach and you know, she was saying, you know, George, you tell if I properties double every seven or 10 years, but we do it so much quicker because she’s always doing reviews. And I’ll put Charmaine on later if she wants to. Come on. She’s always doing reviews of clients and it’s always happening a lot quicker. People are doubling the money quicker than that. But. And that’s good that it’s happening quicker and it can. Christina Markoski Yeah, no, I overheard the conversation and she was saying that it actually happened in five years for these people that she was doing reviews with. Yeah, that’s amazing. Like we should be talking about these member wins. George Markoski Yeah, that’s great. But the thing is I still want to drum into people’s head. You got to think long term. You can’t bank on getting doubling your money in five years. If you get it, great, you’ve done. Christina Markoski That’s just a bonus. George Markoski Just a bonus. And the key is what you need to do is you’ve got to plan for the worst case scenario. And if the best case scenario happens, you’re like, even better. Because if you plan for the best case scenario, then you could be out of pocket. That’s what needs to happen. So you need to be careful there. Yeah, so that’s the thing. So CGT, the capital gains tax exemption, they’re going to try to reduce it once again, try to get more taxes, and that’s what’s going to happen. And that’s just going to keep happening, unfortunately. So what do we do? What we do is we stick to the principles. And it’s funny because the principles are the principles for a reason. right. And the reason most people fail in property is they don’t follow the basic principles of what you need to do. George Markoski And if you follow the basic principles, it’s important. So I was going to swing back to my story. So, you know, my father said, if you want a car, you got to get your own car. You got to buy your own car. So I started working from when I was younger anyway, you know, I. I didn’t earn any money, but I was working when I was like, seven. Christina Markoski You were selling newspapers, you were selling tomatoes? George Markoski Yeah, I was selling tomatoes illegally. Illegally. Out of the bat. Christina Markoski The boot of a car. George Markoski The boot of a car. So my father knew some people that were bootlegging tomatoes. I was bootlegging tomatoes. So my father, heard about, you know, people could make money. He wanted to try to get some extra money. He worked in a factory, and we knew some tomato farmers. So we’d go to Virginia, Drive all the way up there, and we’d get all these tomatoes and pack them in bags. And then my father would open the boot of the car next to the markets at Port Adelaide, and we’d sell them for $2 a bag. And my father said, son, tell people it’s $2 a bag when they walk past. I said, I’m not doing that. He goes, yes, you are. Like, oh, no, I’m embarrassed. Anyway, so I thought, I’ll try it out. So I go, tomatoes for $2. George Markoski And these people came up, said, really great. We’ll grab a few. And they give you, like, some money. And they’re like, give them the tomatoes. I’m like, wow, this is easy. So anyway, then we started doing it, and I started really enjoying it. And people are patting me on the head, giving me tips and everything else. It was so much fun. So, yeah, so I work. I started working from a young age, but I learned how to make money. And I knew that making money wasn’t going to be the key. Because it doesn’t matter how much money you make, there’s another part, how much you save. But there’s another even more important part, how much you invest. That’s the real key. So. George Markoski Because the thing is, I know people that made much more money than me, but I am so much richer than them now because of my problems. Christina Markoski Invest. George Markoski And I know people that are making massive amounts of money and they were really cocky about it and I just worked hard and invested. Christina Markoski Yeah. George Markoski And those investments. Now the thing is, you can’t outperform one house in your whole life. Working and saving and putting the bank. That’s the fact of it. right. You can try, but that’s ego talking. You know why? Because a house, you’ve got the tenant, the tax man, inflation, the bank, everyone else helping you with that. Your investment property. right. And that’s the key. And I see people, and I’ve seen it happen here too. People invested in property have made money, they sold their property and then ended up starting a business and then lost everything. You know, business is so risky. And then you got people and they invest 250, 300, $500,000 in a cafe and then work 80 hours a week and end up broke. And if you invest that in property, you didn’t up rich and you don’t have to do anything. George Markoski Like, it floors me. It’s amazing. Like, because people in their head think if you work harder with your money, but if you don’t know what you’re doing, working hard is going to make it worse. right. Do you know what I’m saying? Christina Markoski Yeah. Never underestimate the power of a passive asset. George Markoski The power of compounding growth. That’s what it’s about. Compounding growth is so powerful and you know, it’s one of the miracles of the world. Compounding growth, really. It’s amazing. And it sneaks up on you because you buy property and it’s very boring and doesn’t do much, doesn’t do slow. Christina Markoski Yeah. George Markoski And then it goes up and then nothing happens. And it goes up and then bang. right? And then you look at, you know, what’s happened recently in stock. Stock markets have dropped. Bitcoin has dropped. You know, I think it’s a 14 year low or something. It’s crazy. All these Bitcoin millionaires now aren’t millionaires anymore. Silver, gold, everything’s correct. Because what happens is people stop believing in these things like silver, gold, Bitcoin stock market and they can instantly cash out. With property, there’s a bit of a process. You can’t just cash out. You can’t say, oh, shit, I think properties are shit now. And just sell your properties. It takes effort, because it takes effort. That’s a good thing, not a bad thing because it balances the market out. But also, you know, if you. Gold, silver, Bitcoin, do you really need it? George Markoski You don’t really need it. Christina Markoski But a house, not as important as a house. George Markoski Well, people can live without. Christina Markoski Even close. George Markoski Well, people can live without gold, can’t they? Of course. Unless you’re a rapper, some of those can’t. right. Christina Markoski Even they can live without it. George Markoski They can live without gold and you can live without silver, can’t you? Yes, you can live that. Bitcoin doesn’t even exist. It’s just in the air. right. You can live without Bitcoin, but without a house, not so nice. right. Where are you going to live? Under a bridge? In a car? In a caravan? Housing is one of those things that’s really important. If you look at Maslow’s hierarchy of needs, if everyone’s familiar with that, there’s a hierarchy of needs and at the bottom is shelter, the safety or basic human need. Christina Markoski Yeah. George Markoski Shelter is one of the most important things for people. And remember, you’re watching Maslow is the bomb. He certainly is. Shelter is one of the most. Was one of the key things. Christina Markoski All the survival shows I’ve ever watched, the first thing they need to do is make a shelter in order to survive the elements. It’s the first thing. It’s more important than water, more important than food. Shelter’s number one. George Markoski That’s right. Now, where is Bitcoin on Maslow’s hierarchy of needs? Christina Markoski It’s not even on there. George Markoski No. Is gold on there? Christina Markoski No. George Markoski No silver? Christina Markoski No. George Markoski Exactly. Now, when you tap into something that’s on the bottom of Maslow’s hierarchy of needs for every human in the world, that’s powerful. Yeah, right. That’s very powerful. Yeah. So that’s the thing. So basically the government’s always going to try to go after your money if you’re middle class. And what the key is you need to use the strategies of the rich and that’s what you need to do. And that’s what we teach here, because that’s what’s important. Because what we do is we use the same strategies that the rich people do. lower your tax, and also to grow your wealth year after year. That’s the most important thing. And when you stick to the principles. That’s when we get to where we need to go. Christina Markoski Well, that’s when you win. It’s pretty basic, isn’t it? George Markoski Well, the thing is, there’s no shortcuts. right. People that try to make money too quick and try to think losing money quickly, you’ve got to be careful. Christina Markoski I see it all the time. George Markoski People that invest for the short term, 90% of people that invest in property short term lose money. 90%? Christina Markoski Yeah. Wow. George Markoski Over a year, period. And each year the success rate swaps around to positive. And then people that invest 10 years, most of them make money unless you really did something really stupid and bought in the wrong area. And I’ve seen that happen. Because the problem is, you know, you got 16,000 suburbs in Australia and some of those suburbs do nothing for 10 years straight. So if you don’t understand the fundamentals, don’t invest. Because getting the wrong property could cost you so much money in unrealised gains. Because getting the right property helps you leapfrog to next property to next property. And if you don’t get the right one, you’re stuck at square one, you’re in trouble. So you want to try to get your first few really good. Christina Markoski The first one is your stepping stone onto the second, and then the third and beyond. So exactly. George Markoski Exactly. Christina Markoski Got to get those steps correct. George Markoski That you’ve got to do the best you can. Because you’re not going to get it perfect, because no one’s got a crystal ball. No one can say that it’s the perfect investment. But good enough is good enough. That’s the key. right. Because the people that look for a perfect investment, they don’t invest. And when you don’t invest, if you don’t have properties, how much money do you make out of property? Christina Markoski Zero. George Markoski Zero. That’s right. And what happens is a lot of people use perfectionism as a form of procrastination. So what they do is they look at something and go, okay, it hasn’t got this. And what they’re really saying, I’m going to procrastinate because I’m not sure and I’ve got the confidence to invest and I’m going to make an excuse on why I shouldn’t invest. And. Or they’re thinking, you know, maybe what I can do is I can find something even better. Christina Markoski Had a good question come through from Samuel. What defines the right property? George Markoski Okay, there’s three parts to this question. The number one thing you need to know is your goal of where you want to go. So then we know what the strategy is. Two, the property should needs to be in the top 100 suburbs in Australia, or at least the top 200. If you can’t get in the top 100 because the 16,000 suburbs at any stage, different suburbs on different parts of the property clock and you want to get something at 7 o’ clock in the property clock that’s going to go up in value. Third part is you want to make sure you can structure that property where you can easily afford it on a weekly basis. So that’s going to determine the price range as well. Because the price range is two things. George Markoski One, you got to get the right price to get the right property going up to can you afford it. Christina Markoski Yeah, that makes sense. George Markoski That’s the thing. And that’s the most important thing. That’s what we’re thinking or doing. Christina Markoski right. George Markoski Because if you do that’s the right property. Christina Markoski And having access in order to get those three things right. George Markoski Yes. And the thing is, the right property is a property that’s good enough to get your goal. It doesn’t have to be perfect. There is no perfect property until afterwards. Do you hear that one? Christina Markoski We could get some info on properties which have doubled in seven to 10 years. Would that be all properties by PPIA? Could we get some be looking at what’s already happened though? George Markoski Yeah, and that’s okay, but that’s not going to predict the future. Christina Markoski What’s going to happen in the future to make you money? George Markoski Yeah, exactly. But look, in 20 years we’ve done $3.5 billion dollars of property deals and every single property that we’ve done has doubled in seven or 10 years. And some a lot quicker. Christina Markoski Some are quicker. Yeah, yeah. George Markoski But not always. Because the thing is, there was a quiet period as well during those 20 years. At the moment we’re going through one of those big rushes. But what you got to understand is the property market’s not always hot like it is now. Right at the moment the property market’s really hot. And that’s okay. Sometimes the property market’s quiet. But the good part is I’ve been through both. I’ve been through quiet. I’ve been through. Christina Markoski It always goes through cycles. George Markoski It goes through cycles. And the thing is you don’t want to. It doesn’t matter if it’s hot or cold. If you invest in the right properties and you’ve got patience, you’re going to make money out of property. But sometimes you’re going to make money out of property. A lot quicker, sometimes a lot slower. Christina Markoski Please explain what a hot market is. That’s from Rebecca. George Markoski Yeah. Okay. A hot market means really there’s only one fundamental when there is more demand, less supply. At the moment, there’s a massive shortage of properties in Australia. And while the shortage continues, it’s going to be a hot market where there’s not enough properties to satisfy the market. That’s what it is. And that’s a hot market. A cold market is when there’s more properties than purchases. That’s a cold market. And then you’ve got different, varying. So what happens is a cold market is anywhere between one o’ clock in the morning. So if you look at a clock, 12 o’ clock’s the peak, 6 o’ clock’s the bottom. A cold market is all the way from 12:30 all the way down to 6, and then a warm market is 7 o’, clock and then a hot market is 9, 10, 11, 12 o’. Clock. George Markoski And then what we want to do is you want to buy at 7 o’. Clock. So therefore you can ride it all the way up to 12, then you have a little dip, then you ride it up again. Top 100 are hotter than the rest. Yes. Because what happens is Even though there’s 16,000 suburbs in Australia and even though it’s a hot market, there’s still cold markets baked in. There’s still good deals and bad deals, there’s good suburbs and bad suburbs and everything else like that. And look, the last 10 years we have had an amazing market and all our members have made a shit ton of money out of property. George Markoski But during that time, there was a lot of people that have joined our program from other programs that have bought properties and have had them for five or 10 years and made zero or negative. So that’s the thing. Christina Markoski Yeah. So one of our members brought a property in Queensland in 2016 for 436,000. It’s just been valued at over a million dollars. 1,070,000. Question from Samuel. So I currently have two. One in a country town purchased pre COVID and has gained 44.5% since purchasing in value, which I feel was luck. What do we look for in those top 100 areas you speak of to invest in? What makes the top 100 area? George Markoski Yeah, look, there’s about 40 different factors that matter. So I’ve got an algorithm. But I’ll tell you the basic part. What I look at is I look at all the indicators that show that there’s less supply, more demand. So what you can do is you can rank every single suburb in Australia with 40 different attributes. Like, for example, if vacancy rates are really low in a suburb, that means there’s a lot of demand. If there’s a ripple effect in a suburb, that means there’s a lot of demand. Because what happens is you got one suburb and you’ve got a suburb next door that’s gone up a lot in value, but this one hasn’t, that pushes demand on that suburb because of the comparison, you have market cycle timing. George Markoski If a suburb hasn’t done what it should do, because what you do is you can historically look at a graph and look at the price and how it’s been going up and normally prices go up around about 7% per year on average, then what you can do is you can do a graph on every single suburb and then look at what the graph is and then you look at the difference. And if the graph is above what it should do, then market stock timing is bad. If it’s below, there’s a gap and that gap shows demand. Now, if you compare 16,000 suburbs and you look at that gap in the last 10 years, that gives you a clear hierarchy of every single suburb and which one’s got more demand, which one hasn’t, or which one will have more demand because there’s a gap. George Markoski Now, the second part about the gap is you need to find out, is that gap because it’s a real gap, or is that gap because market fundamentals have changed? So once you do the research, then you’ve got to look on the ground and find out what’s happened. Because let’s say you’ve got a suburb and there’s a gap. It should have grown 7%, but it hasn’t over the last 10 years. But they’ve got. They’ve recently got a dump next door. Well, that’s why, because it’s gone down in value. But if the fundamentals haven’t changed, then there’s value. So looking at value takes a lot of expertise. Christina Markoski Thoughts on storage units for investment? George Markoski I don’t do storage units. It’s not bread and butter. So I stick to bread and butter. The basics, property. Okay. Remember we had that chat before? Do you need gold? No. Maslow’s hierarchy. Where Storage units on that. Maslow’s hierarchy. It’s not in there. right. You don’t need storage units. That’s a nice to have. You know what I mean? Storage units is a business. It’s different. Christina Markoski Yeah. George Markoski Is there money in storage? Yes, there is. There’s money in everything. But whatever you do, you’ve got to be an expert. right. So storage units, there’s companies that do that for a living professionally, and they’ve got experts that know how to analyse. I can’t compete with them because they know more about storage units. So if I try to invest in storage units, I would not be really good at it compared to the experts. Just like the top 100, no one can compete with me on that. So everyone’s got different things from Mark. Christina Markoski Are apartments a good strategy? George Markoski Depends if the. Depends if it’s got a good supply or demand. right. The problem with apartments is mostly apartments, you have too much supply, not a demand. But if you can find a department where the equation is the opposite, it can be very good. If you look at the last 10 years in Australia, units and houses have grown similarly. Hasn’t made a lot of difference whether you get a house, apartment or a townhouse. Doesn’t make a lot of difference. What matters is the fundamentals of that actual property. So it’s not the type of property that matters, it’s the fundamentals of that type of property in that suburb. Does that make sense? Christina Markoski Yep. And is it in the top 100? Can you get tax deductions? There’s so much to look at when it comes. George Markoski Can they knock down the house next door and build another hundred units? You know what I mean? That sort of stuff. Christina Markoski Absolutely. Is 11% vacancy rate okay or bad? George Markoski I wouldn’t consider that very good at all. No, that’s bad. Christina Markoski Quite high. Yeah. George Markoski Yeah. Christina Markoski So my 17 year old son just started working and it’s been saving. Came to me and asked mum, will I ever be able to afford a property or buy a house. We talked about how much he would need and the realisation if is how much broke my heart. We need someone to start helping our under 25s to get into property suited to their earning capacity. George Markoski Yes. Look, I’ll tell you what’s really working well, because that’s really good. Okay, that’s a good question. I like that question. Because what I really think is important, really important, is, you know, part of my mission is to empower 10,000 Australians to create financial freedom through investing in property. And that’s why I created this group and that’s why I created our membership. And I like to give as much free information as I can every Thursday night to the community. So you can use that to educate yourself and become better at investing. I don’t have any paywalls on my content or anything else like that with Kids, I think the only solution, unless they get an amazing job, is as parents, you’re gonna have to help. Christina Markoski Yeah. George Markoski What’s the best way to help your kids? I’ll tell you the best way. The best way to help your kids is help get help. Get them educated and started early, like when they’re 18, 19, 22. If you’ve got a house and you’ve got a mortgage, you’ve got equity, you may be able to help them as long as they’re getting the right thing. And I know a lot of our clients, they now they’ve become successful in property. What they’ve been doing is getting their kids to join our program under them and educating them and then helping them with the equity, which is great, because then you’re not giving them the fish. Because think about this. If you buy an investment property for your kid, you might think that’s a good thing, but they haven’t learned anything from that process. George Markoski And it’s the learning experience that matters. right. That’s the key. So it’s not just getting the property, because if they haven’t worked hard for it’s going to be too easy. Christina Markoski Going through the steps, understanding the strategy, learning those skills. George Markoski Yeah, exactly. Christina Markoski That’s the value. Getting them involved in the program is a way you can help your children. George Markoski And get them educated and do that. Christina Markoski Learning how to. You can help them with a deposit. George Markoski Yeah, we do. And now this is my favorite part. Real people, real results. This is Bannockburn, settled in 2023. The price was $495,000. So a $50,000 deposit currently valued at 771,000. So these people made $276,000 profit from this deal over the last two years. So look at this. We’ve got Lawrence. Well done. Cameron, there’s Orange Belt. Brad, Eric, Kayla, Diane, and Ro. Lyn. So congratulations and well done. It’s really good to see some excellent results. And I like to highlight these because it’s good to see that people are making money out of property. One of the cool things that we do is we celebrate our wins. And basically what we do is we send everyone a bottle of champagne and we say, don’t open it until settlement. George Markoski And then they get to open it and celebrate because you’ve done a lot of work and getting there is hard. So add my little rant, my political rant. So thank you, everyone, and I’ll see you next Thursday.