The Sandwich Generation is stuck in a wealth limbo where “it seems impossible to get past 1 to 2 properties”, says TPC listener MC. But who are this group of investors, and why are they finding themselves in this property purgatory? 💸 

In today’s episode, we explore how to get creative to escape wealth limbo, the #1 thing you shouldn’t do for those going through a breakup and pose the question… 

Would you stop paying 10c at the risk of not earning $1?  

This question paints the tip of the iceberg for today’s discussion into a battle that looks increasingly akin to David and Goliath as the government continues to stop $3B worth of incentives for property investors… 

The truth is in the pudding (or, more specifically, the Australian Taxation Office’s data): for the first time in recorded history, rental stock is declining.  

It’s an alarming and insightful episode that will open your eyes to the many hurdles property investors must overcome.  

Give it a listen now, folks 😊  

 

P.S. Were you in wealth limbo or are you part of the Sandwich Generation? Send us a message on our SpeakPipe; we want to know you overcome these issues!  

 

Free Stuff Mentioned

• 2024 TPC Survey Now Open!
  Let us know what we should start, stop and keep doing and as our thanks to you, we’ll give you a Case Study Series Unpacked for FREE (usually $297). Plus, the top #5 most insightful answers will win a $100 gift card. Share your thoughts now >>   
• Free Book: Make Money Simple Again  
• Free Money Management Platform: Moorr 
• Are you part of the Sandwich Generation? We want you to be part of our 2025 Summer Series! Reach out to Bryce on Instagram or through our SpeakPipe  (And get a free Start & Build course if you make an appearance!)  
• The first time in recorded Australian History: Rental stock is going backwards and the latest ATO data. Watch this Episode on YouTube to see these insightful graphs >>  
• Bryce’s Lifehack: iPhone stickers can help you plan your outfit! >>  
• Ben’s “What’s Making Property News”: Read Domain’s March 2024 Rental Report >>  
• Guests & Episodes Mentioned:  
  • 376 | It’s never too late to start: How he’s on track for a $2k/week passive income! – Chat with Steve  
  • 382 | “Property Investors are Tired of Being the ATMs for the State!” – Chat with Antonia Mercorella  
  • 401 | How Old is Too Old?! Refinancing, Retiring Debt & Starting Later in Life 
  • 454 | How to Create a $5.54M Portfolio in Your 50s – Chat with Tom Dekker 
  • 473 | Juggling Teenagers, Divorce, and 4 Properties: How This Single Mum Conquered Her Financial Pain – Chat with Leisa 

 

Comments & Questions

Listener Comment from Tom: 

Hi Ben and Bryce,

Loving the content after listening for more than 3 years.

There is currently a lot of noise in the media and social platforms about how us greedy investors are pushing up house prices and rents as well as rolling in wealth as a result of the negative gearing and capital gains tax rules which I believe need to be clarified for everyday Aussies and certainly for the politicians who are using this agenda for their own political benefit.

As a property investor, I have and will continue to work as diligently as possible to pay tax on my rental properties every year. Yes this is my goal!

For the past 3 years, I have had the privilege of paying tax on income received from my rental properties although this may change in the coming year as a result of interest rates and increased costs to hold the properties.

Negative Gearing is a safety net for the investor which supports reducing the “loss” it does not create a windfall at all and simply means that if for example I made a loss of $10,000 on rental properties in a year and I am on the top marginal tax rate, my loss is reduced by up to $4,700.

I am still making a loss whilst providing accommodation so I am a little confused by the politicians assumption that we buy property just so that we can claim back some tax and lose money. Makes little sense and it is my view that removal of this safety net will simply increase the cost of rents.

Capital gains tax discount which was brought in to replace indexing and based on my research, the impact (difference between before and after capital gains tax discount) is actually in favour of going back to the indexing model where investors made slightly more.

I am proud to be a property investor providing good, safe and as affordable as possible accommodation for my tenants and whilst I accept that I cannot always make money on the rents collected, I am ultimately doing this to support myself and my family in retirement where I will most likely continue to pay tax on rental income happily until my final breath.

Seems to me that the politicians want me to reconsider and live off the government in my retirement rather than contribute!

The record needs to be set straight on the greens agenda. The Greens were for the environment when it was top of the social media charts but now suddenly they are the anti-investors party because this has a higher profile.

We as a group of investors need to create a voice that helps inform all people of the facts rather than the political BS!  I would pay to watch or listen to you guys interviewing one of these politicians!

Perhaps by putting everyone straight, we can get the focus back on to the priority which is increasing supply and improving vacancy rates rather than pointing fingers.

Keep up the great work gents!

Tom

 

Question on Sandwich Generation of Women from MC:

I’m keen to hear from single women (and men) who didn’t start investing till their 40s. There are so many of us! It’s a real feature of my generation.

A lot of the single women you’ve had on your program started their investment journey before 2017, so were able to buy multiple properties with equity and before the serviceability constraints came in.

If you’re a single female on a middle income today, don’t have parental assistance or any kind of inherited wealth, and you start investing a bit later, it seems impossible to get past 1 to 2 properties.

I’m keen to hear others who might have done that in today’s environment, especially how they’ve met and creatively dealt with serviceability challenges.

For what it’s worth, I think there’s a large, sandwich generation of women who never married, but whose parents never bothered to educate them about property because they just assumed it was a ladder they’d start climbing once they got married and had children.

But that hasn’t happened, so they’re in a kind of wealth limbo. I know so many people in this situation! I’m also just keen to hear more from people who started their investment journey late – age 40+ – in general and to hear what they’ve been able to achieve.

Cheers and thanks for your terrific program!

 

Timestamps

• 0:00 – Why Is the Sandwich Generation Trapped in Wealth Limbo? 
• 1:35 – Tell us what you want to hear! >>  
• 4:27 – Mindset Minute: How to Stop the Toxic Cycle of Overthinking  
• 9:27 – Previous Summer Series Guest: Negative Gearing is Still Loss Making  
• 13:57 – Property just isn’t stacking up anymore for the investor… 
• 18:27 – A Letter to the QLD Parliament from A Property Investor 
• 22:01 – The first time in recorded Australian history: Rental stock is going backwards?!  
• 26:09 – It’s David vs. Goliath: Giving the investor a voice  
• 32:13 – Would you stop paying 10c at the risk of not earning $1?  
• 38:31 – If you stop the $3B incentives, you have to accept the unintended consequences…  
• 43:40 – Q1) Sandwich Generation of Women from MC   
• 46:14 – You need 2 essential things to invest in property  
• 48:55 – “Don’t think about investments, think about stabilisation”  
• 51:00 – Why Bryce likes listening to success stories  
• 53:57 – Get creative to get out of the wealth limbo 
• 57:09 – Going through a breakup? Don’t do THIS  
• 1:02:19 – Encore Comment: “You’ll be given a generous referral fee of $10,000 plus GST for each successful referral.” 🙄 
• 1:06:48 – Behind-the-scenes of how the referral game works   

And… 

• 1:11:18 – Lifehack: iPhone stickers can help you plan your outfit   
• 1:13:55 – WMPN: Quarterly Rents: We predict VIC will be top soon…