David Mc Gowan, publisher of Together magazine, met one of his heroes to talk about the future of real estate.
David Mc Gowan (DM): It’s my great honour to be here today with Robert Kiyosaki, American businessman and author. So, Robert, as I just shared with you, I read your book Rich Dad, Poor Dad 15 years ago and that completely changed my life. The education I got from that book was priceless. So, today, I have a couple of questions for you. It’s more talking about the future, because I’m not going to ask you what are the keys to success, because you explain that in your book, with 30 million copies sold. I think you know that this book is providing great value in terms of education. But I’m wondering, what is in your opinion the biggest lie about real estate today?
Robert Kiyosaki (RK): I think the greatest lie I’ve heard recently is that real estate always goes up in value. It goes down too I think – the biggest lie is people invest in real estate for real estate. The primary reason I invest in real estate can be explained in two words, debt and taxes. So, the more debt I use on real estate the less tax I pay. And this is true all over the world – the tax laws and debt laws are the same throughout the world. So, whereas a lot of people are investing in real estate to make money, I’m investing in real estate to use debt, as the more debt I carry the less tax I pay. So, I make more money. It’s what’s called ‘phantom income’. So, there are many different ways a person can get rich with real estate, more than just owning your house.