Next Level Wealth

This is How the "Buy, Borrow, Die" Strategy Works in Australia | Next Level Wealth Ep. 002

Wed, 11 Nov 2026 06:00:00 +1000

You’ve spent decades building a property or share portfolio, and now it needs to fund your retirement. Sell it, and capital gains tax and selling costs take a big bite out of your net worth, and the compounding stops the day the assets go. The Buy, Borrow, Die strategy is built around holding on to them instead.

In this episode of Next Level Wealth, Pete Wargent explains how the strategy popularised in the US works, and what changes when you’re investing in Australia, where the tax and lending rules are quite different.

Five of the biggest takeaways:

Borrowing isn’t taxed like income. Earn $300,000 and you might pay around $110,000 in tax, but borrow $300,000 against your assets and none of it counts as taxable income, though you’re still paying interest.
Your heirs inherit your cost base. Australia hasn’t had an inheritance tax since 1979, but unlike in the US there’s no step-up for beneficiaries, so the unrealised gains carry over to them.
Lending is the real hurdle. Since around 2014, banks assess whether you can service the debt, so borrowing gets much harder once your income drops away.
You need scale for it to work. Pete suggests thinking about it once your portfolio is above $5 million.
Refinance before you wind down. Do it in your peak earning years, before you go part-time or move into consulting.

Pete finishes with a line from his friend Michael Yardney, that property is a game of finance with houses in the middle, and why it’s only become truer over the past dozen years.

Episode Highlights

00:00 - What Is Buy, Borrow, Die? Holding Assets for Longer

03:31 - Step 1: Buy Property You’d Never Want to Sell

06:03 - Step 2: Why a $300k Loan Isn’t Taxed Like a Salary

09:05 - Step 3: Die, and What Your Heirs Inherit

09:57 - How Australia Differs: No Inheritance Tax Since 1979

12:20 - Margin Loans vs Property Equity, and the GFC Lesson

17:20 - A $10 Million Portfolio With a $2 Million Cost Base

20:55 - Lending Since 2014 and the Risks of Living Off Equity

24:10 - Before You Retire: Scale, Trusts and B-Grade Properties

27:26 - Refinance Early and Property as a Game of Finance

Get in touch with Pete and the team at AllenWargent Property Buyers.

Enjoyed this episode? Subscribe to Next Level Wealth for more insights and practical conversations about building wealth, growing your business, developing success habits, and creating a better financial future.

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The information provided in this podcast is for general informational purposes only and should not be relied upon as financial, investment, or credit advice. It does not take into account your personal objectives, financial situation, or needs. You should consider the appropriateness of the information to your circumstances and seek advice from a licensed financial adviser, mortgage broker, or other qualified professional before making any decision. Canopy Private Pty Ltd holds Australian Credit Licence 558709.

Make Time Your Ally: Compounding Across Wealth, Work and Life | Next Level Wealth Ep. 001

Thu, 29 Oct 2026 06:00:00 +1000

It’s possible to work harder every year and still not feel any further ahead. A new venture here, a new investment there, a change of direction when something better comes along. Each move feels like progress, and each one resets the growth you’d started building.

In the first episode of Next Level Wealth, host Pete Wargent of AllenWargent Property Buyers walks through eight simple steps for putting compounding to work across your wealth, business and life.

Five of the biggest takeaways:

Don’t interrupt compounding. Changing course every few years restarts the curve, and restlessness isn’t the same as progress.
How long you compound matters more than how fast. As Pete points out, the bulk of Warren Buffett’s wealth came after 65.
Costs compound too. On an 8% return, a 2% annual fee could cost you half your wealth over the long run.
What goes up fast can come down fast. Meme coins and penny stocks rarely beat steady compounding left alone for decades.
Get several things compounding at once. Your career or business, investments, super and reputation pulling together is what Charlie Munger called the Lollapalooza effect.

Listen through to the end for the question Pete wants you to sit with. Across your career, business, investments and even your health, what’s interrupting your compounding, and can you remove it?

Episode Highlights

00:00 - Leave Nothing on the Court: Welcome to Next Level Wealth

01:16 - What Is Compounding? From Casio Calculators to Rabbits

05:17 - Step 1: Don't Interrupt Compounding by Changing Course

06:47 - Step 2: What Kills Compounding, From Quick Bucks to 2% Fees

10:44 - Step 3: Time Beats Speed, From Warren Buffett to Duolingo

13:22 - Step 4: Meme Coins, Penny Stocks and Why Fast Gains Fall

15:45 - Step 5: Why You Learn Faster as You Get Older

17:05 - Step 6: Your Social Circle Compounds, for Better or Worse

18:13 - Step 7: Good Habits Compound, and So Do Bad Ones

20:27 - Step 8: The Lollapalooza Effect, Compounding All at Once

23:26 - What's Interrupting Your Compounding? 8 Steps Recapped

Get in touch with Pete and the team at AllenWargent Property Buyers.

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Welcome to Next Level Wealth! (Trailer Episode)

Wed, 28 Oct 2026 00:00:00 +1000

If every extra dollar you earn costs you another hour, your income has a ceiling. Getting past it starts with putting compounding to work.

Next Level Wealth is a weekly podcast hosted by Pete Wargent of AllenWargent Property Buyers. Each episode brings timely, positive conversations on wealth, business, lifestyle and success habits, for anyone ready to stop trading their time for money.