PHOTO: Robert Kiyosaki and wife Kim Kiyosaki
Rich Dad Poor Dad author Robert Kiyosaki has warned an economic crash worse than the 2008 recession is coming and Australia’s negative gearing policies are a form of “Marxism”.
In an exclusive interview with The Daily Telegraph, the best-selling author said the world was on the brink of a major change and this disruption would hit the global economy.
He pointed to the rise of China, America’s waning influence and internal divisions, and years of Western governments printing “too much money” as major red flags.
“We are living in the time of the greatest change in economic history,” he said. “Something is happening in the world that hasn’t happened before.”
Mr Kiyosaki explained that China was ascending to take over US leadership of the global economy and this was increasing the threat of a violent conflict.
It was also increasing the prospect of some form of economic disaster, but he did not elaborate on when it would occur or exactly how severe the crash would be, only that it would be “worse” than 2008.
Rich Dad Poor Dad author Robert Kiyosaki and wife Kim Kiyosaki. Picture: Darren Leigh Roberts
“2008 was the first big crash and a bigger crash is coming,” he said, explaining that, like in 2008, world governments were printing too much money.
Mr Kiyosaki, who was reported to own more than 8000 properties, said the next financial crisis would provide opportunities for astute real estate investors.
“I am pessimistic about a crash … but it is also the best time to get rich,” he said. “Entrepreneurs are going to win.”
But Mr Kiyosaki also cautioned that property prices may tank when another economic disaster hits and prudent investors would need to be prepared to ride out a downturn.
“If you are counting on property (always) going up, you could be wrong,” he said, adding that the opportunity for investors would be the drop in values, followed by a gradual recovery.
“If there is a crash, a lot of bargains will be available,” he said.
Kiyosaki has invested in Sydney and Brisbane. Picture: John Appleyard
Mr Kiyosaki was speaking with the News Corp Australia ahead of a property summit he was set to host alongside local investor George Markoski. The free virtual workshop will be held on January 22.
Mr Kiyosaki has dabbled in Australian real estate, including purchases in Sydney and Brisbane, and said he took issue with some local government policies around taxes.
This included negative gearing. “I don’t like government support,” he said. “I am a capitalist, not a Marxist.
“My concern is that … with negative gearing it’s monetising debt and property values are overinflated … it’s not real. It’s got to make economic sense.”
The Rich Dad Poor Dad author added that Australian taxes on property purchases were excessive.
Mr Kiyosaki was reported to own more than 8000 properties.
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