Real Wealth Australia Pty Ltd
ABN. 32 242 826 742
T: 1300 85 88 96
PO Box 555 Diamond Creek Victoria 3089
Bestselling property author and educator
Dear Property Investor,
You may have recently seen my business Real Wealth Australia discussed on the Consumer Affairs Victoria website. In a moment, I’ll explain how that happened and what our response was.
But, first, let me introduce myself.
- I’ve been a property investor for 15 years. I’ve been running Real Wealth Australia – Australia’s leading property education company – for 9 years now!
- In that time, my team and I have personally helped over 1,000 property mentoring clients.
- I’ve published 3 bestselling property books and have helped educate literally tens of thousands of people in how to invest successfully through my online videos and talks.
In other words, we are a long-term professional property education business, who takes our responsibility to our clients – fellow property investors – seriously.
With that said…
Here’s what happened with Consumer Affairs Victoria…
Recently some of the marketing material on the Real Wealth Australia website was considered to be out of date – it was 2 years old and apparently seen to be a little too ‘ambitious’ in its claims!
We’re grateful that the good folks at Consumer Affairs brought it to our attention and I am really excited about most of the benefits we have been able to create as a result, both for ourselves and for our clients.
Here’s the skinny…
# 1 AMBITIOUS STATEMENT!
A headline on my website announced to visitors:
‘You’ll be in the top two per cent of property investors who will able to retire financially free with ten properties in ten years’. What I should have said is…
“If you implement my proven property education system, it’s possible to buy 10 properties in 10 years because I know what’s possible when you follow my system…and take massive action.”
(In fact, recently a client bought 5 properties in one year! She is not alone in buying multiple properties in a relatively short period of time.)
Although, like all general statements, it could be seen as being inaccurate because let’s face it…many people are more likely to travel to outer space than take responsibility for their financial future!
However, the fact remains that people who join our program and follow our ‘10 properties in 10 years’ ™ investing system are taking responsibility for their own financial situation.
If this is you, I give you a big salute!
And, you’ll be pleased to know we are continuously improving our program – each and every day – to give our clients the best chance possible of being in the top 2% of investors in the country. That’s our lifelong company commitment.
# 2 STATISTICS CHALLENGE
I got some statistics from the ATO on the amount of people investing in property:
Here’s what I said:
‘the latest research by the ATO on property investment shows that just 5.4 per cent of the population are property investors and… only 2 per cent of Australians own more than 1 property.’
Only 5 per cent of the total Australian population have purchased an investment property and only 1 per cent has purchased more than two properties.’
Here’s the latest statistics that I can find from RP Data on this topic so you can see the difference.
The 2010/2011 financial year indicated that 14.3% of individuals who lodged a tax return owned investment properties while a greater 19.2% of individuals that reported a taxable income owned investment properties.
This indicates that despite the fact that 1,811,174 individuals own investment properties the vast majority of Australians don’t invest in residential property.
It also reports: “negative gearing of investment properties allows owners to claim a tax deduction on these costs. The average annual loss for these property investors with negatively geared properties was $10,947 or $210.50/week.”
“The average annual profit earned from the 597,577 individuals who made a profit from their investment property in 2010/11, i.e. have positively geared investment properties was $9,075 or $174.50 per week”.
“According to the ATO data, 72.8% of individuals that owned an investment property owned just one. Meanwhile, 18.9% of individuals owned 2 properties while just 0.9% of individuals owned 6 or more.”
For more interesting bits, here is the source:
In 2010/2011 1,811,174 individuals owned an investment property so I wasn’t too far out in what I wrote – but this is obviously quite old information. In Australia, a Census is conducted only once every 5 years.
So what have we done to fix this?
We realised that whilst statistics and measures are correct at the time of the research, they also age and become out of date.
When you look at our materials now, we aim to share the year when the statistics were published….and we are on the lookout to keep the statistics as close to today’s situation as possible.
# 3 STATISTICS CHALLENGE AGAIN!
And, finally, (and embarrassingly!), I had some out of date statistics of my students’ success still on the website.
It said that 80% of my mentoring students purchased a property in 12 months; and 50% have gone on to purchase more than two properties.
Now while this was true at the time I published it on the website (2012), since then we worked with a promoter and sold their clients a more ‘hands off’ education program designed for their specific needs.
It was not specifically designed for the clients to buy a property in their first year.
Overall, this means of course that our student results were watered down.
We are no longer promoting this specific program as we only want to work with people who want to build a property portfolio fast.
Our team of mentors are working hard with our students to get their success rates right back up to those previous high levels – watch this space!
So that’s what happened…
We now have a compliance manager in place to help make sure this doesn’t ever happen again.
Be assured, we’re still giving 110% PLUS to educate Australian investors to be financially independent. I hope you’re one of them!
To Your Success,
Real Wealth Australia Testimonials
Real Wealth Australia Video Testimonials
Helen Collier Kogtevs Video Reviews