Good morning everyone, and welcome back to Sugar Mama's Fireplay podcast, the podcast that ignites your financial journey with inspiring stories and innovative strategies. I am your host, financial planner, Anna Campbell, and today we are back chatting with my financial mentor, my only financial mentor, and that is, of course, the one and only Peter Thornhill, the self funded retiree that just simply gets richer and richer as time goes by.
And he has written his own book, Motivated Money, which is one of the best books you could possibly read if you are serious about being financially independent and having true, authentic, sustainable freedom in your life. So we're going to be chatting with Peter. I'm going to be asking him a whole pile of questions and I guess you could say maybe reinjecting that serious financial motivation back in your life
to think about your financial stress. Now, before we begin, a reminder that all of my content will it be something on Instagram, podcast, YouTube. It's always general in nature and for educational purposes only, so please always bear that in mind. All right, let's get started. Peter, Thank you
so much for coming in again. I'm so incredibly grateful for how generous you are with your time and also how you help educate and inspire every day people about the power of Australian Industrial shares and investing for the Lauren, how are you today?
I'm absolutely fine, Thank you Kenna, and delighted to be back.
Well, thank you coming in now. Can you give me a bit of an elevator pitch that is like a thirty second spiel as to what your personal financial strategy or philosophy.
Is basically buying quality businesses that produce a growing income stream and allow my wife and I to float through life in a totally sustainable, enjoyable and amazing manner.
Can I ask you who actually inspired you to start this journey and to change the way that you're investing away from the generic you know, do a risk profile, go with a balance manage fund. Who was the person that actually led you to this path and enlightened you with the power of Australian Industrial Shares.
I think that there was no one individual Canna. It was more the way things evolved in terms of career. So the eighteen odd years that began as a working holiday in England with my wife and stretched out to eighteen years. The only reason I came back to Australia was because I was headhunted. But it was that apprenticeship in England where I guess the reasons for investing in shares was slowly absorbed by me as I was surrounded
by so many successful investors. And it's that legacy that carries us today in the lap of luxury, because.
Would you say, like Osmosis, almost you just absorbed their strategies because the proof was in the pudding and could see it was working.
Yes, there was no sort of epiphany. But coming back to Australia, the difference between investing attitudes in the UK and in Australia are just chalk and cheese. Can you explain further well, Property in England is largely to live in, just a lifestyle asset, a lifestyle act. Yeah, And in Australia it's the be all and end or of a person's life. And it's that the bulk of the productive capital of this country is locked up in residential property.
The bulk of Australian businesses are owned by overseas investors. So we have I think the figures for twenty two over forty billion dollars of dividends from Australian companies disappear overseas because Australians don't like shares because they're risky.
Our ego is completely fixated and obsessed with property, even though it is quite often the stupidest and most painfully expensive asset to hold. But we're just fixated on the idea of a tangible asset, even though it can be damaging.
I know, and it knocks my socks up. You know, if you own a property, what have you got, whether it's a rental property, your own, You've got rates, You've got repairs, You've on and on and on. I buy shares, what do I pay from that point onwards? Nothing? And they pay me. And if you have an investment property and you get rent, well, negative gearing would have to
be about the dumbest thing I've ever heard of. You borrow money to buy something that doesn't cover the interest costs, and apparently that's really good because you avoid paying tax on some of your income. Oh do you? But despite that, when I get a dividend, that's all well and good, But you've got to add the franking tax credits on top and the fact that owning those shares basically holds me, costs me little or nothing.
You know what I find it is the retirees who are late in their retirement that only finally then cotton on to how powerful franking credits are because they get their refunds back of those franking credits, and it boosts the retirees income from say forty five thousand dollars to say fifty two fifty three thousand dollars. Only then later life are they realizing how powerful and how valuable and
how important those franking credits are. But they've wasted so much time in their life not actually acquiring those assets. Like it's the penny's dropped very late in life, unfortunately. But anyone who's listened to this podcast today actually has the advantage and the opportunity to learn this, to understand it, and then but and apply it and accumulate these types of quality assets.
Can It grieves me and I try not to spend too much more time thinking about it, but financial literacy in this country is virtually non existent.
It's embarrassing and I'm ashamed that it's so bad. And that's what I'm obviously trying to do something about it. But you know, and at times I say this personally like it feels like I'm banging my head against a brick wall. You know, you'll see something, you know that have finfluence, so someone who's not even qualified talking about like trading a certain stock or you know, purchasing this property. But then you know, you put something up about a
share portfolio. The other day, I shared your chart of one hundred thousand dollars invested in nineteen seventy nine what would be worth today, and it is worth seventeen point four nine million dollars. I think it got seventeen likes or something ridiculous. And then the comments I got were, well, I don't have this much time to invest, And I'm like, you don't have to necessarily build a seventeen point five million dollar investment portfolio, build a one point seven million
dollar investment four follow that's also incredibly amazing. But we are feeding people these solutions and strategies that are based on evidence and facts, and they aren't being absorbed, Like what is this? Why are people being so thick? And I sound like I'm being a bit of a bitch, but I mean, I follow this advice myself, and I see for myself how valuable this industrial share path is. What's going on?
Yep, It's a sad fact of life, Kenna. And the reason that I spout a lot and the reason I wrote the book, Yeah, people deserve a hell of a lot better. We're a relatively young country. So the history has been basically property from the moment Captain Cook set foot and it has remained so. And it is a very sad waste of the productive assets of this country. And foreign ownership of our Australian companies. I could weep. You know. We talk about the Big Australian BHP. BHP
is over seventy percent foreign owned. Where do the dividends go? Overseas? Rio is the same. And you can look at virtually any Australian company and often the shareholding is majority owned by overseas investors. So tens of billions of dollars flow out of this country every year as the dividends disappear.
It's just heartbreaking, isn't it?
It is? It just seriously is Look.
I can proudly report that the listeners of Sugarama's Fireplate and how they thought that absolutely love what you have to say, and you know, whenever we post something now that you've said, or a clearp or you know, an audio file, it goes mental and people starting to really listen, and people are finding your philosophy and your concept a
breath of fresh air. Now, I want to talk to you about the shift are listed investment companies you've a views have explained in the past, predominantly your portfolio was the individual companies, you know, the supermarkets, the banks, the transportation companies, the pharmaceutical companies and so forth. But over the last maybe ten years, you've been shifting those assets
slowly and steadily into your listed investment companies. Can you, obviously I understand the benefits of this, but can you explain to our listeners why you chose to do this and the benefits of doing this?
Okay, the one thing I don't want to do is spend one minute of the time that I have left on this planet looking at shares. And it concerns me the number of people who will, probably predominantly males, who retire and then spend their time in front of a computer watching shares and trading shares. And if I can give you the definitions invest the use of money productively so that a regular income is obtained, speculate buying and selling in an attempt to benefit from a fluctuation in
the price. Now a lot of what you see in the media, and god, bitcoin, I find difficulty using the word. But the media talks about people who invest in bitcoin, they talk about people who invest in diamonds, who invest in and so on. You cannot invest in any of those items. You can speculate, And I wish the media would define what they're doing rather than just classifying anything you buy jewelry, wine is an investment, it's not. It's the use of money productively so that a regular income
is obtained. And therein lies the key, very simple definitions.
Exactly it's two dimensional assets or forget about it. I'm going home. I'm not listening at all. And if people just don't realize the risk that they're actually taking to go and speculate with those types of assets, they have no idea the potential danger they're inflicting upon themselves. And at the end of the day, whether your portfolio is worth two million dollars, if it's not paying you anything,
what's its purpose. I would rather have a one million dollar asset paying me, say, fifty thousand dollars a year and growing consistently, consistently growing passive income than two million dollars in something that I don't even know if I can actually sell at that price because there isn't necessarily liquidity, And then I've got to go and pay a whole pile of capital gains at tax, Like, how does that
help me in my financial freedom? Nothing at all? And the risk and stress as well, just it's just absolute stupidity.
Well that's the sad part kind of you know, fear is based on ignorance. That's why people don't like shares. They think they know property because they're surrounded by it. And I've had people say to me, oh, yeah, but you know I can go and see the property and you know, tangible. Yeah, apparently they've never walked into a supermarket and acknowledged that as being something. But they've never walked into a bank.
Oh dear, Well, you know, we were just chatting obviously before we walked into the studio, and we're talking about you know, we're fixated as a country on property. But what do we do when we go and buy a property. Most of us give it a fresh, fresh lick of paint. Where do we buy a paint from. We might get a tradesman, and we might buy a new washing machine or a new fridge. We might maybe do a bit of a renovation, you know, we might buy a new sofa.
Where is all that money is going to the businesses? People just think so one dimensionally with property and they're missing ninety five percent of the other side of the story and how to build wealth. So with you switching from the individual stocks into listed investment companies, you mentioned you want your time back. You don't want to be sitting in front of a computer screen all day. And the simplicity obviously of having a listed investment company is
tax reporting. You're not collecting to probably if you had to say, thirty stocks in your portfolio and each of them pay a dividend twice a year, the amount of paperwork involved. You're looking at sixty statements to be able to handovers to your account it or to do yourself to try and do your taxes. It's all done simply within two simple, consolidated, concise statements.
And ken of what concerns me is people who buy shares at an early stage and then use the dividend reinvestment plans. So two dividends a year over thirty years gives you sixty individual capital gains tax that you're going to have to deal with if you ever come to sell the shares.
Well, my goal is never ever to sell. I will pass that tax issue onto my state. They can deal with it. But I mean, I have always been acquired. I mean, and I will put my hand on my heart. I do own property, but I own property to get back into shares because the bank will lend me money at a lot lower interest rate than I will if I didn't have property there. But all I want to do is just continue on acquiring reinvestmor I can purchase more and continue to make sure my portfolio is diversified.
And I, like you, am very much aligned to the I guess you could say the simplicity and the peace of mind and the delegation of a listed investment company. And that is definitely something I have started to do with my dividends, coming in using them to require more of my listed investment companies because there's a lot less paperwork involved and there's a lot more time that I get back as an investor, building my passive income through dividends.
I couldn't agree more Kenna, and again we're behind the eight ball. A teen years in Europe, I became very familiar with the fact that long term residential leaseholds on most property in Europe gives people security of tenure in this country because a lot of the property is owned by institutions in Europe. In Australia, residential property is owned by idiot owners who then rented out. But you're on what you know, today's notice to quit.
There's no stability whatsoever. And until our government looks at changing the regulations about immersent properties and making sure that you have to sign you know, you have to make the property available for five years, ten years, whatever it may be, I don't see any other solution in the meantime.
No, it's sadly our politicians are all Australians and.
They all own property themselves.
Having laid my hands on the Register p Unary Interests for the Australian Federal Parliament and if anyone's interested, it is publicly available. I spent a couple of nights doing a little bit of research. The vast majority of the politicians in this country are up to their eyeballs in negatively geared property, not a lot owned shares, which means the politicians.
Are just as stupid as everyone else is.
Correct, which means meant for me that when I become Prime Minister, I'm not going to have one Australian in my cabinet. I'm going to hand pick every one of the members of my parliament overseas and hopefully create a mix that will give us Australia as a whole the productive use of its capital rather than the totally unproductive use it has.
Now, what are your thoughts for people who are he to start investing and they understand everything you're saying about the property market, it's not for them. They want to build this diversified investment portfolio of growing passive income. What are your thoughts of starting with a listed investment company and then as your experience and confidence changes and evolves over time, then thinking, you know what, I'd like to actually own more of that bank or more of that supermarket.
Do you think that that's still something that people can consider as a strategy but at least they've gotten started the meantime, or you think just stick with the list investment companies.
The whole way through their life is not should not be involved in something they know nothing about. If you're going to buy a direct share, are you going to go and interview the board of directors? Are you going to go and analyze their financials? Leave it out and leave that to the specialists. You get on.
With your life, get your time back. Don't sit in front of a computer screen and the stress and pressure of making you know, some may people were scared of making the wrong decision that they actually end up doing nothing at all.
Correct. Focus on the things that are important in your life, your family, your career, and your friends, and your health and your health.
How many listed investment companies do you think one needs in their investment portfolio? This is when I really struggle with some interest to hear your thoughts.
Well, I've got four, and that's probably because there are I could have five or six. Maybe six would be the ideal because then you're getting twelve dividends a year. But I've stripped it back to just four, and honestly, the only contact I guess I have at large is I get notification the dividends have arrived. If you own six, you get twelve. I own four. I get eight dividends a year, but oh my god, are they large dividends.
Oh, it's previously spoken about what your retirement looks like, and you by far have the best retirement of anyone I know, like multiple trips overseas with your beautiful wife. Can you tell everyone again about your experience with your granddaughters.
Yes, what a joy to be able to spoil them rotten and have so much fun with them. And yeah, you know it's nerve armor and not one ounce of financial concern at all.
That must feel so liberating.
It is I sleep at night, I wake up and I'm full of joy for the next day we have to see the granddaughters, what have you? But oh god, yeah, no, I'm incredibly lucky, Canna.
Well, they're lucky to have you as well. Now I can ask you how we how does one remove themselves or ignore? And I'll probably just answer the question by asking you, but how do we learn to turn down the noise when it comes to the media and these ridiculous clickbait driven headlines? You know, X billion of dollars wiped off mom and dad investors today? How do we just learn to shut it off? And is where do you go to get your news and stay informed.
I get Actually I'm very naughty now because I only get one newspaper. And the only reason I get it is so my wife can do the sudoku and the crossword. And then is she used to wrap up the vegetables before we toss them in the other bin. But yeah, I don't have an easy answer to that. It's just you know, the way life is. I mean, I cannot ignore what's going on in the world. But the important thing to remember is that history repeats itself over and over and over again. So we're going to have a
crisis in the seventies. They are oil crisis, back in nineteen seventy three, share markets tank, the global financial crisis, the COVID, it just goes on and on and on. But to suggest that this is a reason for saying, oh God, you know shares blah blah blah blah, do all the businesses in the world shut down?
Absolutely not, absolutely not.
And I think human endeavor is the driving force. So one just sits back and enjoys the efforts of a lot of very productive people doing very very good jobs who then pay us.
And if anything, when there are these clickbait driven times, you know about very normal and natural short term quality in the market. Quite often the best opportunities to be able to acquire bigger and better quality in income streams at a discounted price exactly the same. And it's you know, boxing day sales. Do we run away from the supermarket and the shopping malls. No, we turn up with our hot own money and shop. Why are we doing the same with the stock market?
Well, exactly. And one of the things I do like about the listed investment companies certainly that we hold is from time to time they come back to their existing shareholders and say, we are going to raise fresh capital for investment, and we will therefore be offering new shares at a small discount and no brokerage to add to your portfolio. And the tax rules say that if it's not more than thirty thousand dollars, it's there's no fees, no tax, no nothing. You can just tip that money in.
It's dream time.
It's a no brainer, absolutely, And this is why if you're investing, you've also got a stockpile of your cash for these opportunities as well, so when they present themselves, you can jump on them. Above and beyond obviously, of course emergency money, but you know you want to just be focused on growing your income and acquiring more of these assets that help you grow your income.
And the beauty with the share purchase plans is you can put in anywhere from one thousand dollars up to thirty thousand dollars with absolutely no implications whatsoever.
Yeah, I mean, this is the power of listed investment companies and this is not available for ETF holders.
Nope.
Yeah, what would you say is the number one biggest mistakes young Australians are making these days when it comes to their money, their lifestyle and their financial.
Future their lifestyle.
But can you elaborate more?
Well, my wife and I, oh my god, I'm seventy seven, and you know we're going way back ancient history. But my wife and I didn't have a rosy between us when we met and married. But I was lucky because I happened to marry someone who was a saver like me, and so throughout our lives we've never spent all weird. I've never owned a new car. My current automobile is a two thousand and five Toyota Corolla. But I am
a petrol head. But I enjoy renting high falutin cars just so I can have a real fun time and then hand the keys back. I don't know. It's simple, but I feel naughty saying it like that.
It sounds fare, but you're full of wisdom. There's nothing naughty that you're saying at all.
Yeah, and no secrets at all. It is just spend lesson you earn, borrow lesson you can afford and be sent But I think one thing that strikes me now, having three sons and five granddaughters and people that we other, young people that we know, their lifestyle has to be top of the line from day one.
Champagne's be a budget.
Yes, and that was one thing that when my wife and I married, it was years before we could take a holiday.
The entitlement and the expectation these days is concerning.
We never ate out, couldn't afford it, Yeah, And we walked a lot. Didn't have a car for quite quite a time, and when we did it was was it God? It was a nineteen forty six Comma van that we used for touring.
It's interesting you say that because I think some of the best moments I've had personally, the most the deepest moments, the most moving moments are the ones that have actually been broke, you know, and thinking. You know, you appreciate life so much more in those moments, and it teaches you so much about the respect of a dollar, how hard it is to earn a dollar, how important it
is to save and invest a dollar. Those actually the really rich moments, filled with wisdom and give you the opportunity to change your life and reshape your life, to grow something incredibly beautiful and do so mindfully. But we're just living in the clouds with this. You know, I want it, I'll have it right now, and the best of the best, And you know it's we've lost our way a bit. We've just consumers and materialism at its finest it is.
And you know, you're quite right. We go back to the nineteen seventies when Freed and I were starting our life together. Very very simple things were incredibly pleasing, but they were infrequent, and there was often a special effort to save up for that little item or what have you. But oh my god, how happy we were when it occurred when we were finally got four wheels and we could drive around and visit friends, Heavens to Murgatroyd.
We're missing that sense of pride and accomplishment. We're robbing ourselves of it, and we're robbing our children of it as well. Yes, yeah, all right, what is the biggest mistake you've ever made with money?
Golly, isn't it funny? I can't think of any one huge one, but there have been a hell of a lot of trip ups along the way. And I'm sure, actually I've never really thought about it, Canna, this is something.
It's someone who retired with over ten million dollars and only really started investing properly in his late fifties. I don't think you've probably made too many mistakes, So no, wonder it's a hard question to answer.
Well, with the finances were the ones that supported us. And look if I go back to the very early days, when I've still got the original share certificates of my first investments in Australia. I worked in Melbourne for a broking house for a while and as I say, I haven't actually framed them yet, but every one of those share certificates everyone, there were three of them. All the companies went bust. So yeah, my early steps into the share market, every single one of them were total disasters.
And that's the thing with you know, we're all made mistakes. That's part of life. But you've got to be okay with that and learn from that and obviously try not repeat that mistake every again. So if you have a go at this and picked the wrong investment, don't give up on investing. Go back to the drawing board. You got motivated money. Learn about the power of listed investment companies to help you get you back on track again.
And if you've follow that formula, listed investment companies and just delegate it to an expert that can do all the investing and the timing and the negotiating of share prices and all your tax reporting. Just stick to it.
Don't try and reinvent the wheel. When it comes to, you know, getting ahead financially and investing your money wisely, I think we put this and the media you know does this, and obviously I think also the financial product providers they create these complicated, unnecessarily complicated financial products so they can just layer up a whole pile of fees for themselves and then sell it to us so that we feel like we have to lean on them to in order to be able to get ahead financially, which
is just so wrong. Correct, The simple answer is right in front of us.
Everybody thinks it's becoming more sophisticated. In fact, it's becoming messier we as we move along.
I have mentioned this to you before, but I'm interviewed Angus Gluski, who's the seat Oh yeah, of white Field, of Whitefield, lovely guy. And you know, we were talking about fee and their fees have been coming down, and I think they believe they're around about maybe three point three point five percent. It not three zero point three
point five percent. So if I put one hundred thousand dollars into white Field shares for three hundred and fifty dollars a year, I'm paying them to do all my investment decisions, all my tax reporting, organize all my dividends to be paid to me. And I do not need to lift a finger in working out what's stock to be buying, what's stock to be acquiring more of? You know,
where's the next best thing, where's the value? I don't have to for the measly three hundred feet dollars when you sit down and look at the amount of hours involved to do all of that work, it literally would work out to be about twenty cents an hour. Like it is just it is the best value for money.
But people bitch your own about fees and it's like, well, you can go and find a very complicated, you know, sexy financial product with the whole parlor of marketing behind it that's going to charge you probably three maybe four times that fee, and they will fill their pockets before they fill your pocket.
And if you're concerned about the fees of elisted investment companies, which as you rightly say, are low, you know we're talking about KNOWERO point zero three. Are you really pissed off about your doctor, your dentist, your lawyer charging you exactly? Or are you going to do all of those things, your dental work, your legal work yourself exactly. Yeah. I mean, for some strange reason, the financial side of things is seen as some sort of circus, and boy, have we got some clown.
I find it interesting, you know, And this is like going back to my days when I was financial planning, I'd meet with bdms and these mediums would turn up with and that we used to call them. This is a little bit that we used to call them borrough show delivery boys, which is very degrading, and I acknowledge
that and we've moved on from there. But literally, these people would turn up with a whole pile of brochures and then you'd ask them about the product and they knew everything about it, but you'd ask them, do you invest in this? And they never did, and you just like, Okay, I'll see you later, goodbye. Like that's the financial products that are being created that we're being being sold in our face every day.
Yep. And having worked for fund managers overseas and in Australia, the reason I left the industry in two thousand was because I could no longer stand in front of people and say this is what you should invest in, because I was not prepared to invest in it myself. And I'm sorry, I will not stand up and lie publicly to people.
Yeah, and that is so important. And for anyone you're following on social media, if they're not muching to the beat of their own drum, they don't drum and don't have skin in the game, I would not give them any time of day. And this is why I'm so passionate about you know, teaching people about your philosophy and your message about power of Australian shares, in particular industrial shares.
That is what I'm acquiring. If you gave me a million dollars today, it would be back into my share portfolio, and after obviously doing a debt recycling strategy. But that's another story for another time, because I hate my mortgage. Now. Is there a moment in your life where you, like, I guess, an anecdote or a poignant moment in your life where you're like, wow, we just got our first dividend,
or wow, look at our dividends. They're really starting to build up now, because you look at the growth of investing over the long run, and we all know that it's boring, boring, boring probably for the first five, maybe seven, eight year, nine, ten years is boring. But then magic kicks in because of obviously the compounding interest and dividend reinvestment, and you can actually now really see the effect of
the consistently growing dividends. Was there a moment in your love here you're like, holy crap, this is actually unbelievable.
There was Canna, and it wasn't that long ago. As part of my presentation. Probably two or three years ago, I created a handful of new slides, and one of the slides is I looked at every investment I have made is in Microsoft Money, so I can take you back and I can show you my entire investment history. So I played around with them. So I looked a handful of the shares that I had sold, and I'd made a loss. Bugger, I thought another, hang on a second.
Then I went back and got into Microsoft Money and looked, oh, hang on a second. The dividends that were paid are more than the loss that I made on the sale. So I didn't actually lose any money. And that was a bit of an epiphany for me. But yeah, it's all about the here now. Is the price up? Is the price down? Oh? For God's sake, I've got an attractive wife. I've got a few years left to run. So I'm going to make hay while the sunshine.
All right, As we wrap up today's episode, I want to talk about, just quickly about mine, not Mine for Money. That's my book, Mind for Money, Motivated Money. All this alliteration going on. What made you want to write Motivated Money?
I think it was the realization that financial literacy was virtually nonexistent in this country. Everyone you talk to, and this goes back to eighty eight when FRIEDA and I came back from overseas, it was all about property, property, property, property. If you mentioned the sheer market, most people would have shrugged it off. Oh no, a bit risky. Everybody feels
they know property. And I think one of the attractions, and I mentioned this to you earlier, large number of zeros associated with property, whereas with shares it has to start small somewhere because you don't have the three hundred thousand to toss in the deposit on the property. You don't have that to toss into shares. So the number of zeros associated with property are very attractive to people. So it's really good if you can say at the dinner party, oh, you know, the property is worth three
point five million, and yeah. I tried to avoid those conversations at dinner parties, you and.
Me both, and I can't help myself. I think I'm becoming you because I'm like, well, how much of you did you pay in stamp duty?
All right?
How much have you paid for the wear and tear? How much you paid in council rates how much you paid in interest, and you sort of watch the color and their face drain out, and you know, going to that question put at that point in the moment where you, wow,
this is incredible. I had won myself where I was sitting down adding up our passive income of what we're building and growing for our own financial freedom, and I call this a mindful money number where I'm trying to build up two hundred thousand dollars a year in passive income because that means Tom and I can stop work, travel be there for our kids. That's our goal and
that's what we're on our way of achieving. But when I sat down, I said, okay, where I've got this and dividends, and we do own a couple of investment properties which we would love to get rid of, but for separate reasons which I won't go into today, we can't,
and they are lemons of investments. But well, for me, that moment was I looked at what the share portfolio was worth and what the properties are worth, and I looked at the income and I'm like, wow, this share port follow is much smaller than the value of these lemon ridiculous useless properties, but the income was actually way
more than the rental income from these properties. That is a far more efficient use of my cash flow and my heart earned money if I want financial freedom, and that's what people really miss, that point of comparison.
And look, if you want to borrow money to invest, that's fine. It frustrates me because of the lack of long term leaseholes in this country. Frieda and I unfortunately have had to own property ever since we got back to Australia. Now that leaves me a little and so what I do is when we own a property, I immediately go to the bank and I asked for another mortgage and they say, oh, you know, what do you
wonder for. I said, I'm going to invest it. Oh, well, that that's going to be an investment loan, so we're going to charge you X y z more than the mortgage rate. I said, no, no, no, it's a home loan that you were giving me. I had so much fun sitting with a bank manager going through this until eventually he had to acknowledge that the title deeds to our property they had and they had lent me the money holding that title deed to buy it. In the
first place. All I wanted to do was renew the mortgage. Eventually they couldn't argue with me, so I now borrow against our apartment. Because it bugs me that I've got all this, these millions of dollars sitting in this blasted property doing nothing nothing. So I've gone to the bank and I've now got two mortgages, one in Frida's name, one in my name, and we have withdrawn that valuable capital and it's now invested in productive enterprise, producing fully
franked dividends. The bank has lent me money to buy something that's paying me more than I'm paying the bank, and I'm very grateful to the bank for doing that.
I bet you well. Peter, thank you so much for coming in today's episode. I really appreciate it. And for all of our listeners, please, please, please, can you go and grab a copy of Motivated Money by Peter Thornhill. I will link it in the podcast notes, And once you have read this, go and buy all of your family and friends this book. Tell them about it, demand that they read it and have a heated discussion at the dinner table over coffee as you go for a walk.
Because this is a strategy, a concept that is so incredibly powerful, and you don't want to discover this too late in life and be filled with regret. Read it, apply it, and don't stop. Be committed, be dedicated, and keep your eye on the price. You're growing passive income of fully franked dibbits.
Thank you, Peter coming, Thank you,