Himalaya: Listen. Learn. Grow.

4.8K Ratings
Open In App
title

Investopoly

Stuart Wemyss

1
Followers
10
Plays
Investopoly

Investopoly

Stuart Wemyss

1
Followers
10
Plays
OVERVIEWEPISODESYOU MAY ALSO LIKE

Details

About Us

Each episode lasts between 5 and 15 minutes (as short and succinct as possible) and contains tips, strategies, research, methodology, case studies and ideas to help you build wealth safely and successfully. Stuart Wemyss is a qualified independent financial advisor, accountant, tax agent and licenses mortgage broker allowing him to provide holistic advice. He has authored three books with his latest being Investopoly. (Buy your copy here - http://investopoly.com.au/). Stuart writes a weekly blog which is reproduced on this podcast

Latest Episodes

Research report: Performance review of investment-grade apartments

It is my observation that investment-grade apartments in Melbourne have under-performed (from a capital growth perspective) compared to houses over the past 8 to 10 years. That is, apartments have generated very little capital growth (sometimes none), whereas houses have grown in value by between 5% and 8% p.a. over the same period. I have prepared a detailed report investigating the factors that have contributed towards this capital growth performance gap. Whilst I have focused my analysis on the Melbourne market, many of the factors identified and discussed have had an impact in Melbourne and to a lesser extent, Sydney. I provide a brief executive summary below. I invite you to download a copy of the full report (link is at the bottom of this page). We know that property growth tends to occur in cycles The chart below sets out the distribution growth in the median price of apartments in Sydney, Melbourne and Brisbane over the past 40 years. It is clear that growth cycles tend to l...

21 min5 d ago
Comments
Research report: Performance review of investment-grade apartments

Update: US election, impact of zero overseas immigration, US tech stocks, super-low rates and more

Investment update: How to navigate current uncertainties There is never a perfect time to invest. The stars never align. In reality, there will always be reasons why investing now feels risky. The solution is to learn to dance with uncertainty. Generally, most people can achieve this by doing two things. Firstly, focus only on generating quality investment returns in the long run. Ignore any short-term outcomes, as they are rarely relevant. Stick to proven investment fundamentals. Only adopt evidence-based strategies. Playing the long game often inspires higher levels of confidence. Secondly, embrace the fact that uncertainty is your friend. Potential investment profits are greatly improved during times of higher uncertainty. Early April is a good example. We helped many clients invest in the share market during April and subsequent months. Whilst we are fixated on maximising long term investment returns, our clients have generated very good returns in the short run. With this in mi...

17 min1 w ago
Comments
Update: US election, impact of zero overseas immigration, US tech stocks, super-low rates and more

Why were you so wrong?

Have you ever had a strong opinion (prediction) about investment markets which was subsequently proven to be incorrect? A recent example was when many people predicted borrowers would be forced to sell their properties due to the Covid lockdowns and the market would crash. This outcome now seems unlikely. It is my view that a humble mindset is the best way to avoid being blindsided by unexpected investment risk, whilst at the same time spotting all opportunities. Let me explain. Predicting the end of the world isn't a risky endeavour Robert Glazer wrote about the concept of cognitive dissonance in his recent blog: "... the authors examined the followers of cult leaders who predicted that the world was going to end on a specific date, and told everyone to prepare. When that day passed without a fiery inferno, you may have expected these cult leaders to have lost all credibility with their followers. Instead, the exact opposite happened. The leaders simply declared their prediction wa...

14 min2 w ago
Comments
Why were you so wrong?

Federal Budget 2020: Overview & analysis

This year's budget was definitely aimed at business rather than individuals, and it needed to be. The main goal of the federal budget is to create jobs to repair the damage that Covid has done to the economy and Australian community. Therefore, if you already have a job, there's not much good news for you in the budget. However, there is plenty of good news for the Australian economy which will probably enhance the share market and property investment returns. What's in it for individuals? The major benefit contained in the budget for individuals was income tax cuts. These tax cuts are backdated to begin on 1 July 2020. The table below sets out the tax savings (second column from the right) that you may enjoy. The budget also included some other miscellaneous benefits, which are listed below. Improving the super industry and performance The government will direct employers to pay super into existing accounts (as advised by the ATO) to avoid opening a new account with a new super fun...

19 min3 w ago
Comments
Federal Budget 2020: Overview & analysis

Lending update: interest rates and borrowing capacity improvements

The government made an important announcement last week. This change could substantially increase your borrowing capacity in the next year. It is perhaps the most significant change that has occurred in the last decade and will further fuel property price growth. I also wanted to update you on interest rates, particularly in light of recent expectations that the RBA will soon cut rates again. A positive change for investors and the property market In 2009, the government re-wrote the laws governing the provision of loans. This required mortgage brokers and lenders to ensure that any new loans provided to borrowers were 'not unsuitable'. The background is important Since the introduction of this new legislation, the government (ASIC) has been gradually tightening the laws, particularly over the last 3 to 4 years. In October 2018, I compared the loan application process to a forensic investigation (see below). This was not an exaggeration. A few months ago, even the Governor of the RB...

19 minSEP 30
Comments
Lending update: interest rates and borrowing capacity improvements

Why blue-chip property values will rebound by > 10% in 2021

n May, I wrote a blog after CBA released its bearish 'worst case' forecast for the property market. It predicted a 32% drop in prices! I outlined in my blog why I thought that was rubbish and prices would not fall by more than 10%. To date, according to various data sources, property values have not slipped by much more than 2% to 3%, which is barely noteworthy. CBA revised its forecast on 9 September admitting they got it wrong. Now that the virus is under control in Melbourne (and also nationally), I thought it was an opportune time to share my forecast for next year. It is my view that prices in well-established, inner-city, blue chip suburbs will rebound strongly in 2021 and deliver double-digit growth. I set out the reasons for adopting this view below. Covid has hurt low-income earners and younger people the most Unfortunately, lower-income earners have been more financially vulnerable to the impact of Covid. They tend to work in occupations that do not lend themselves to work...

19 minSEP 23
Comments
Why blue-chip property values will rebound by > 10% in 2021

How long will your super last after retirement?

The compulsory superannuation contribution rate is set to increase by 0.5% each year for the next six years (i.e. from 9.5% to 12%) beginning from 1 July 2021. It is understood that the Federal Government is considering postponing next year's increase, due to concerns about whether the economy can afford these higher employment costs and at the same time as deal with the current economic challenges. A lot of the commentary about superannuation, including whether next year's contribution increase should be postponed, is often motivated by political and vested interests. Therefore, I thought it would be useful to cut through this rhetoric and focus on the facts alone (i.e. maths). In particular, I wanted to focus on two questions; (1) how long will your super last after retirement, and (2) how important are higher contributions compared to investment returns and fees. How long your super will last depends on what you spend Obviously, a key determinant of how long your super balance wi...

20 minSEP 17
Comments
How long will your super last after retirement?

It’s not the size of the return, it’s the length that matters

Investing well is important. However, investing well over long periods of time is most important. Everyone would agree that making a one-time 50% return on an investment is a wonderful outcome. But making a 7% return each year for 40 years is a far better outcome, as it multiplies your initial investment by a factor of 15! This is an important principal to remind ourselves of, especially at the moment when our lives (and, to some extent, markets) have been turned upside-down by Covid-19! Even moderate returns over long periods generate massive wealth The chart below published by Vanguard (click to enlarge) calculates how much $10,000 invested in 1990 would be worth today. The Australian (ASX200) index is currently trading at 5,985. If it grows at 2% p.a., what will its value be in 50 years' time? The answer: The ASX200 would be 16,100. If it grew by an average of 4% p.a., it would be worth 42,500. Now, imagine it if grows by 8% p.a. - which is still below the 8.9% p.a. growth rate o...

20 minSEP 10
Comments
It’s not the size of the return, it’s the length that matters

How to tell if your accountant is missing valuable opportunities?

The difference between a great and an average accountant can be significant. Not only is tax one of your biggest annual expenses, but a great accountant should be able to proactively identify other financial opportunities, in addition to tax-saving measures. Typically, the more complex your financial situation is (e.g. if you are self-employed, running a business, have a trust or SMSF, etc.), the more you have to gain from having the right accountant. That said, working with a great accountant is in everyone's best interest. How do you know if your accountant is great or not? It's difficult for clients to tell whether their accountant is proactively looking for, and has identified, all financial opportunities. The reality is, you don't know, what you don't know. To help you, I have listed below some common traits or behaviours that may indicate if your accountant is great or not! They take a long time to respond to your calls/emails This is a common complaint by many people. A lack ...

17 minSEP 2
Comments
How to tell if your accountant is missing valuable opportunities?

Why the next property you buy is the most important one

This blog's title is a bit deceptive, because every property you buy is important, for either lifestyle or financial reasons. I contemplated using the title: "why the first property you buy is the most important one". But the reality is, if you have made a mistake on your first property, you can always start again. The general theme of this blog is to demonstrate that the compounding impact of buying the right property is critical to understand. Why is it so important? Let me explain using an example: Rick and Karen are buying their first home and are comparing two properties. Property A is considered to be investment grade and has great growth prospects i.e. 6% p.a. growth rate. Property B is a newer property but has inferior growth prospects and barely keeps up with inflation - growing at 1% p.a. Both properties cost $750,000. Rick and Karen need to borrow $700,000. After 5 years of principal and interest home loan repayments, the balance of Rick and Karen's loan would have reduce...

15 minAUG 26
Comments
Why the next property you buy is the most important one

Latest Episodes

Research report: Performance review of investment-grade apartments

It is my observation that investment-grade apartments in Melbourne have under-performed (from a capital growth perspective) compared to houses over the past 8 to 10 years. That is, apartments have generated very little capital growth (sometimes none), whereas houses have grown in value by between 5% and 8% p.a. over the same period. I have prepared a detailed report investigating the factors that have contributed towards this capital growth performance gap. Whilst I have focused my analysis on the Melbourne market, many of the factors identified and discussed have had an impact in Melbourne and to a lesser extent, Sydney. I provide a brief executive summary below. I invite you to download a copy of the full report (link is at the bottom of this page). We know that property growth tends to occur in cycles The chart below sets out the distribution growth in the median price of apartments in Sydney, Melbourne and Brisbane over the past 40 years. It is clear that growth cycles tend to l...

21 min5 d ago
Comments
Research report: Performance review of investment-grade apartments

Update: US election, impact of zero overseas immigration, US tech stocks, super-low rates and more

Investment update: How to navigate current uncertainties There is never a perfect time to invest. The stars never align. In reality, there will always be reasons why investing now feels risky. The solution is to learn to dance with uncertainty. Generally, most people can achieve this by doing two things. Firstly, focus only on generating quality investment returns in the long run. Ignore any short-term outcomes, as they are rarely relevant. Stick to proven investment fundamentals. Only adopt evidence-based strategies. Playing the long game often inspires higher levels of confidence. Secondly, embrace the fact that uncertainty is your friend. Potential investment profits are greatly improved during times of higher uncertainty. Early April is a good example. We helped many clients invest in the share market during April and subsequent months. Whilst we are fixated on maximising long term investment returns, our clients have generated very good returns in the short run. With this in mi...

17 min1 w ago
Comments
Update: US election, impact of zero overseas immigration, US tech stocks, super-low rates and more

Why were you so wrong?

Have you ever had a strong opinion (prediction) about investment markets which was subsequently proven to be incorrect? A recent example was when many people predicted borrowers would be forced to sell their properties due to the Covid lockdowns and the market would crash. This outcome now seems unlikely. It is my view that a humble mindset is the best way to avoid being blindsided by unexpected investment risk, whilst at the same time spotting all opportunities. Let me explain. Predicting the end of the world isn't a risky endeavour Robert Glazer wrote about the concept of cognitive dissonance in his recent blog: "... the authors examined the followers of cult leaders who predicted that the world was going to end on a specific date, and told everyone to prepare. When that day passed without a fiery inferno, you may have expected these cult leaders to have lost all credibility with their followers. Instead, the exact opposite happened. The leaders simply declared their prediction wa...

14 min2 w ago
Comments
Why were you so wrong?

Federal Budget 2020: Overview & analysis

This year's budget was definitely aimed at business rather than individuals, and it needed to be. The main goal of the federal budget is to create jobs to repair the damage that Covid has done to the economy and Australian community. Therefore, if you already have a job, there's not much good news for you in the budget. However, there is plenty of good news for the Australian economy which will probably enhance the share market and property investment returns. What's in it for individuals? The major benefit contained in the budget for individuals was income tax cuts. These tax cuts are backdated to begin on 1 July 2020. The table below sets out the tax savings (second column from the right) that you may enjoy. The budget also included some other miscellaneous benefits, which are listed below. Improving the super industry and performance The government will direct employers to pay super into existing accounts (as advised by the ATO) to avoid opening a new account with a new super fun...

19 min3 w ago
Comments
Federal Budget 2020: Overview & analysis

Lending update: interest rates and borrowing capacity improvements

The government made an important announcement last week. This change could substantially increase your borrowing capacity in the next year. It is perhaps the most significant change that has occurred in the last decade and will further fuel property price growth. I also wanted to update you on interest rates, particularly in light of recent expectations that the RBA will soon cut rates again. A positive change for investors and the property market In 2009, the government re-wrote the laws governing the provision of loans. This required mortgage brokers and lenders to ensure that any new loans provided to borrowers were 'not unsuitable'. The background is important Since the introduction of this new legislation, the government (ASIC) has been gradually tightening the laws, particularly over the last 3 to 4 years. In October 2018, I compared the loan application process to a forensic investigation (see below). This was not an exaggeration. A few months ago, even the Governor of the RB...

19 minSEP 30
Comments
Lending update: interest rates and borrowing capacity improvements

Why blue-chip property values will rebound by > 10% in 2021

n May, I wrote a blog after CBA released its bearish 'worst case' forecast for the property market. It predicted a 32% drop in prices! I outlined in my blog why I thought that was rubbish and prices would not fall by more than 10%. To date, according to various data sources, property values have not slipped by much more than 2% to 3%, which is barely noteworthy. CBA revised its forecast on 9 September admitting they got it wrong. Now that the virus is under control in Melbourne (and also nationally), I thought it was an opportune time to share my forecast for next year. It is my view that prices in well-established, inner-city, blue chip suburbs will rebound strongly in 2021 and deliver double-digit growth. I set out the reasons for adopting this view below. Covid has hurt low-income earners and younger people the most Unfortunately, lower-income earners have been more financially vulnerable to the impact of Covid. They tend to work in occupations that do not lend themselves to work...

19 minSEP 23
Comments
Why blue-chip property values will rebound by > 10% in 2021

How long will your super last after retirement?

The compulsory superannuation contribution rate is set to increase by 0.5% each year for the next six years (i.e. from 9.5% to 12%) beginning from 1 July 2021. It is understood that the Federal Government is considering postponing next year's increase, due to concerns about whether the economy can afford these higher employment costs and at the same time as deal with the current economic challenges. A lot of the commentary about superannuation, including whether next year's contribution increase should be postponed, is often motivated by political and vested interests. Therefore, I thought it would be useful to cut through this rhetoric and focus on the facts alone (i.e. maths). In particular, I wanted to focus on two questions; (1) how long will your super last after retirement, and (2) how important are higher contributions compared to investment returns and fees. How long your super will last depends on what you spend Obviously, a key determinant of how long your super balance wi...

20 minSEP 17
Comments
How long will your super last after retirement?

It’s not the size of the return, it’s the length that matters

Investing well is important. However, investing well over long periods of time is most important. Everyone would agree that making a one-time 50% return on an investment is a wonderful outcome. But making a 7% return each year for 40 years is a far better outcome, as it multiplies your initial investment by a factor of 15! This is an important principal to remind ourselves of, especially at the moment when our lives (and, to some extent, markets) have been turned upside-down by Covid-19! Even moderate returns over long periods generate massive wealth The chart below published by Vanguard (click to enlarge) calculates how much $10,000 invested in 1990 would be worth today. The Australian (ASX200) index is currently trading at 5,985. If it grows at 2% p.a., what will its value be in 50 years' time? The answer: The ASX200 would be 16,100. If it grew by an average of 4% p.a., it would be worth 42,500. Now, imagine it if grows by 8% p.a. - which is still below the 8.9% p.a. growth rate o...

20 minSEP 10
Comments
It’s not the size of the return, it’s the length that matters

How to tell if your accountant is missing valuable opportunities?

The difference between a great and an average accountant can be significant. Not only is tax one of your biggest annual expenses, but a great accountant should be able to proactively identify other financial opportunities, in addition to tax-saving measures. Typically, the more complex your financial situation is (e.g. if you are self-employed, running a business, have a trust or SMSF, etc.), the more you have to gain from having the right accountant. That said, working with a great accountant is in everyone's best interest. How do you know if your accountant is great or not? It's difficult for clients to tell whether their accountant is proactively looking for, and has identified, all financial opportunities. The reality is, you don't know, what you don't know. To help you, I have listed below some common traits or behaviours that may indicate if your accountant is great or not! They take a long time to respond to your calls/emails This is a common complaint by many people. A lack ...

17 minSEP 2
Comments
How to tell if your accountant is missing valuable opportunities?

Why the next property you buy is the most important one

This blog's title is a bit deceptive, because every property you buy is important, for either lifestyle or financial reasons. I contemplated using the title: "why the first property you buy is the most important one". But the reality is, if you have made a mistake on your first property, you can always start again. The general theme of this blog is to demonstrate that the compounding impact of buying the right property is critical to understand. Why is it so important? Let me explain using an example: Rick and Karen are buying their first home and are comparing two properties. Property A is considered to be investment grade and has great growth prospects i.e. 6% p.a. growth rate. Property B is a newer property but has inferior growth prospects and barely keeps up with inflation - growing at 1% p.a. Both properties cost $750,000. Rick and Karen need to borrow $700,000. After 5 years of principal and interest home loan repayments, the balance of Rick and Karen's loan would have reduce...

15 minAUG 26
Comments
Why the next property you buy is the most important one
success toast
Welcome to Himalaya LearningClick below to download our app for better listening experience.Download App