About the Authors iii Disclaimer vi Introduction ix Part 1: Dispelling the Myths 1 Your Role in the Game 3 2 Myth 1: The Property Market Will Crash 5 3 Myth 2: Houses Are Better than Units 23 4 Myth 3: You Need to Sell to Make a Profit 25 5 Myth 4: Cashflow-positive Property Is Better 33 6 Myth 5: Debt Is Bad 37 7 Myth 6: Pay off Your Home Loan as Soon as You Can 44 Part 2: The Wealth for Life Strategy 8 Making It Safe 51 9 Wealth for Life 54 10 The Finance Game 77 Part 3 11 Inspiring Real Life Stories 87 12 Getting Help with Your Next Step ... 171 13 The Wealth for Life Factors 174 Appendix 177 Glossary 179 Player's To-do List 187
Edward Chan was born in Papua New Guinea in 1959. He completed his secondary and tertiary education in Sydney before becoming a Certified Practising Accountant. He began his career in the early 1980s, working with PKF International and various other practices, and in 1984 he began his own practice, called Chan & Naylor. Today Ed is the Chairman of Chan & Naylor Business, Property and Tax Accountants, which is recognised within the profession as being one of Australia's leading accountancy firms. It specialises in small businesses, self- managed superannuation funds and structuring of property investments. Chan & Naylor is the model firm studied by thousands of students when completing their CPA program with the Australian Society of Certified Accountants. Chan & Naylor is also studied by students completing their MBA at Queensland University. Chan & Naylor won BRW's Fastest Growing Accountancy Firm for 3 years running and is ranked 37th in the top 100 Accountancy Firms in Australia. Ed is a seasoned and passionate property investor and developer. His unique understanding of the relationship between property investment and tax makes him one of only few accountants who truly understand how to structure investments for asset protecti on and tax minimisation. He has been a regular presenter at property investment and professional seminars held by the Institute of Chartered Accountants in Australia and the Institute of Public Accountants. Ed Chan has had a profound impact on the way the entire accountancy profession operates, through the development of compliance systems and practices. He is a director of EknowHowAccounting Pty Ltd, which has a membership of over 520 accountancy firms around Australia that subscribe to the company's unique system of operations. He is also a regular presenter on best-practice methodologies to over 4000 accountants in public practice around Australia. Ed lives with his wife and three children in Sydney. David Naylor was born in Sydney in March 1961. The eldest son of four children, David had a great passion for sports at a young age. He honed his cricket and football skills by playing in the local streets and parks on the lower north shore of Sydney. Due to his talent for sports, he was always selected as the leader of sporting teams wherein his leadership qualities began to emerge. Sports sharpened his interpersonal and management abilities that he still applies in the business world today. David's hard-working parents had a big influence on his drive, self-motivation, and entrepreneurial spirit at a very young age. When he wasn't out playing sports, he was picking oranges and selling them door-to-door. He also had other jobs throughout his schooling life such as working in a processing line in a cannery, delivering freight, and he was also a bricklayer's labourer. He attended St Patrick's College at Strathfield in New South Wales at the age of 10, and in his later years of schooling, began to excel in practical subjects such as English, History, and Economics. His last two years of school were mainly focused on getting out into the workforce so that he could start building a career. He turned to the banking industry where he realised his passion for creating wealth. David joined the CBC (now the NAB) in 1979 where he started out as a junior ledger clerk and through his determination, became the number one teller of the Balmain branch in Sydney within two years. He then left the bank to further his education so that he could help people and consult with them directly about their finances and business After attaining the relevant tertiary qualifications in 1985, he was hired by John Fenton and Ted Brailey of Brailey and Fenton Accountants who gave him his first break in the accounting field. It was also around this time where he met Ed Chan, and the seeds for Chan & Naylor were first sewn. Fast forward to 2007, David and Ed had built Chan & Naylor to a point where it could run on a day-to-day basis without them working as accountants. So he retired from his general practice role and held the position of managing director of the national group for 12 months, before moving on to a more strategic role as a member of the Board. David continues to assist the Chan & Naylor group with strategic advice at a Board level and, together with Ed, represent the business in the media and write articles for various publications. In addition, David also sits on a number of other Boards providing strategic direction. In recent years, David and Ed have branched out to co-found EknowhowAccounting Pty Ltd, a web-based intranet and website solution for accountancy firms, which now boasts over 800 clients. They have also both assisted in the Post Graduate MBA Course offered by the University of Queensland, where Chan & Naylor was used as the benchmark firm. This has since become part of the Certified Practicing Accountant (CPA) program studied by thousands of students. David lives with his wife, Dianne, and their two boys, Ben and Jordan, in Sydney.