how does it feel to be a property investor?, page-23

2. Secondly Warnie,

Warnie - Your quote from the BRWRich200 - "Property remains the single biggest source of wealth with 59 real estate entrepreneurs in the Top 200 list, compared with 25 resource magnates and 23 financial services magnates".

Both you and I know you are incorrect, Warnie. Don't treat your readers here like fools.

That excerpt that you posted was a very broad-based statement, which generalised all categories of property. If they did a breakdown of what type of property the Rich200 invested in, owning rental homes accounts for 0%. Zero.

We are talking about residential property i.e. rental homes. The likes of Packer, Lowey, Pratt etc don't own 10,000 rental properties. They might hold large investments in commercial offices, warehouses, industrial land, etc (all very valid and solid choices for property investment, might I say), but they sure as hell don't own rental properties, and none of them have ever made their wealth that way. And neither have property developers such as Harry Triguboff - because he builds apartments, then flogs them off - he doesn't hold on to them and accumulate, and negative gear etc. He's a seller, not a buyer. Key difference.

What you need to learn is that as a method of wealth generation, buying rental homes is clearly not the way - and Australia's richest people are testament to this.

Maybe buying some quality high-end residential property AFTER you've made your millions elsewhere (i.e. in business) might be a good strategy for the sake of diversification and largely proptecting yor wealth, however buying rental homes is not the path to riches.

I thought that most people already knew this stuff but obviously not, according to Warnie.