Our Philosophy

Our Philosophy

Wealth through property accumulation

Why you need wealth

Almost everyone dreams of drawing an income from a passive source so they can stop working and enjoy life without having to worry about money. Wealth is not an end in itself, but a means to achieve that dream. In order to make it happen, you need to invest wisely now to reap the benefits later.

DPN’s Retirement Calculator is a simple tool that shows you how much you'll need to save to be able to stop working and live off your investments.

For example, if you're 40 years old and want to retire in 20 years time on $52,000 a year ($1,000 a week), you'll need *$2,347,945. This figure will allow you to draw an income, at that time, of $93,918 per year, that will be equivalent to today’s $52,000.

If you're still paying off your house and don’t have an investment portfolio, that means you'll have to save an average of $117,000 a year over the next 20 years. If that seems out of reach, then you should consider property accumulation as a means of building wealth.

*Based on an a 3% inflation rate and 4% net return on capital

Why property investment is great for building wealth

Billions of people around the world invest in property because it is a sound investment. In fact, it is the primary source of wealth accumulation and transfer from generation to generation.

Why? Because humans will always need somewhere to live.

Whether the economy is up or down, people still need a place to live.

Banks value property more than any other asset class, and as such, they will lend you more for property than anything else because of its certainty and perpetual demand.

The rich believe in property

Many of the world’s richest people have built their wealth through property investment. The largest source of wealth according to BRW’s annual rich lists is often property. These lists include some of Australia’s leading billionaires like Harry Triguboff, developer of Meriton Apartments, Gerry Harvey of Harvey Norman, and Frank Lowy, co‐founder of the Westfield Group, the leading shopping centre property developer in the world.

In every nation and every major city in the world, wealthy people invest in property to compound and build their wealth. It is a fact of life, and it's not a stretch to believe that you can join the ranks.

Australian property - consistently solid

At Direct Property Network (DPN) we are passionate about and confident in Australian property. We believe that accumulating direct property in Australia is a smart and sure way of building wealth.

Over the last three decades (1980-2010), Australian house prices have recorded peak periods of extreme growth at an average annual rate of 8.4%. (Source: RP Property Data, Property Pulse)

While there are many other ways to build wealth, including shares or building a business, one thing we know for sure is that most Australians are confident about property because of our sound financial systems and sustainable property market.

Be wealth focused

Over the years, we've found that people don't always focus on the right things when investing. Sometimes, all it takes is a shift in mindset.

There are two questions we ask to help get you into the right frame of mind:

Q1. Would you prefer to pay $1,000,000 in tax or $100,000 in tax each year?

Most people usually respond “$100,000 of course!”

Our response is that $1,000,000 is preferable, because it means you would have to be earning over $2 million a year to have to pay that much tax.

There is an easy way to avoid paying tax: either make no money or lose money.

Our philosophy is to always aim for profit and growth, and we want our customers to share that philosophy. Whilst we always consider tax effective structures to ensure that you pay the legal minimum amount, taxation is secondary to building wealth. 

‘Too often people sacrifice their wealth to minimize their tax.’ Samuel Khalil

Q2. Would you prefer a house worth $10 million with a $1 million debt against it or a house worth $1 million with a debt of only $100,000?

Again, many people choose the house worth $1 million with only $100,000 of debt, being more comfortable with the lower debt amount. Yet if you were to sell either house you would end up with $9 million for the dearer house after paying off the debt and only $900,000 for the cheaper house. This is an illustration of ‘Net Worth’ or ‘Net Position’. The formula is as follows:

Assets (wealth) - Debts (liabilities) = Net Worth/Position

Understanding this helps you deal with ‘gearing’, which is borrowing to invest. We can become more comfortable with debt as long as it is manageable and we have assets behind that debt.

Having a large debt isn’t so scary if you have an even larger asset base and income to sustain it.

Nothing to hide…

We are not financial planners or tax accountants. Our only agenda is to inform and provide professional assistance to investors, to help them make sound property investment decisions.

Our service accelerates the property research and sourcing process that any sensible property investor should undertake. We work with you, your accountant, financial planner and/or solicitor to ensure that the foundational work has been done before you buy an investment property so your returns are solid.

Smart investors leverage the experience and resources of others

DPN exists to help people acquire and accumulate properties in Australia based on sound independent research and a sustainable methodology. We are not hype merchants promising overnight wealth, rather we'll take you through a process we've developed over the past 15 years to help you build wealth in a consistent and realistic manner.

We understand that everyone has a different capacity, risk-appetite, income and asset base, and hence need only take on what you understand and are comfortable with. Our services, network and resources can help you accelerate the building of your property portfolio in a way that suits you.

100% No-Charge & No-Obligation Guarantee

There is no charge or obligation to use our services. We make our money from the products we research and source for you, negotiated with the suppliers/vendors, saving you time and money. You just need to make sure you are happy with those products, otherwise just say 'No thanks' and you will have paid nothing. It’s just like using a mortgage broker.

There is nothing mysterious about what we do. It simply takes time, effort and experience – all of which we want to share with you. Read on to find out how Our Approach, Property Accumulation Analysis and Property Valet can make the process very simple and rewarding for you.