Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

If you're an ambitious person who dreams of being super successful, it's natural to look up to those who have already made it and ask: How did they do it? Was it incredible talent? Focus? Hard work? What techniques or strategies did they use that I can steal? Now it's the same whether we're talking about property investing, business success, or entrepreneurship. There's only one problem with that approach, according to some fascinating new science highlighted by the MIT Technology Review and also a handful of honest investors and entrepreneurs, luck plays a way bigger role in success than most of us acknowledge. If you try to follow the path of your role models without acknowledging that fact, you're likely to run into some very serious problems. So, in today's episode, I'm going to be joined by my business partner and founder of Business Accelerator Mastermind Mark Creedon as we discussed the importance of luck in your success. And whether you're a business owner, professional, entrepreneur, or property investor I'm sure I'll get some benefit from our chat, so welcome to today's show. What role does luck play in your success? I recently read an MIT article that highlighted something I already knew - success isn't evenly spread through the population. In fact, its distribution follows a pattern where a tiny number of people end up with the vast majority of the money, or a small group of business owners significantly more successful than the rest, or whatever other marker of material success you're looking at. Like many things in life success follows the Pareto principle - the 8020 rule, but if you think about it; it's a little unusual because talent and intelligence are spread much more evenly throughout the population. So why are some people so much more successful than others just like really have a role to play? In my mind, the biggest thing that holds people back from becoming rich is their thinking. As we explain in Rich Habits Poor habits - your thoughts lead to your feelings – your feelings lead to your actions, and your actions lead to a result. so, your outside world is a direct reflection of the inside world. And we have found that the way the rich think is very different from the way the poor think. The Rich Are Positive Thinkers – A positive mental outlook is critical to overcoming problems, obstacles, pitfalls, mistakes, and failures. Staying positive is a critical component to becoming wealthy. Positivity is like a radar in search of solutions to intractable problems. The Poor Are Negative Thinkers – Negative thinkers are unable to see solutions to problems. Thus, they are unable to overcome obstacles, pitfalls, mistakes, and failures. Opportunities pass them by because they are not looking for opportunities. They are too focused on the negative consequences. The Rich Are Decision-Makers –Forging the habit of making decisions is critical to success. Those who develop the habit of making decisions are sought after as leaders, by others. Decision-makers have forged the habit of overcoming the fear of making decisions along with the paralysis of analysis associated with those unable to make decisions. The Poor Let Others Make Decisions –They succumb to the fear of making a decision. They get lost in analysis and overthinking, which is a form of procrastination. The poor feel uncomfortable about making decisions, so they defer to others. What's more, you need the right mindset to be lucky. Another thing I found is that luck finds positive people — people who seek out opportunities. And luck favors the persistent. All successful investors, businesspeople, and entrepreneurs have failed more often than unsuccessful people. They became a success at failing and survived until they became lucky and thrived. Luck is a reward for persistence. The fact is, those who try the hardest are the luckiest. Or, more accurately, they simply never stopped trying to succeed and their persistence eventually created good luck. Those who reach the top in property investment set themselves up to get lucky because they: Set long-term goals — They bring their future into the present so they can do something about it now, rather than just hoping it will all turn out all right. Delay gratification — they spend less than they earn, so they can save and invest the difference, meaning they'll have lots of money to spend in the future. Understand the importance of capital growth of their assets. Continuously study the markets and are relentless optimists who don't get scared by the property pessimists who worry that our markets will crash. Are risk-averse and, rather than speculating, invest using a time-tested strategy that allows them to say no to more so-called "opportunities" than they say yes to. Are decisive — while they're not in a hurry to find a good investment opportunity when one arrives (when luck smiles on them) they're in a hurry to secure it. Specialize rather than diversify — that's how they become an expert in t

In the past week, three of our four major banks have changed their outlook for house prices and are now predicting the biggest housing crash in decades. It will I be right? Economists at Commonwealth Bank and National Australia Bank are forecasting house prices to fall by 10% next year and Westpac forecast house price falls of 7% in 2023 and a further 5% in 2024. The forecasts are predicated on the assumption that the Reserve Bank will begin raising interest rates later this year and housing will be "collateral damage in the RBA's efforts to keep inflation on target in the medium term. But how likely are these forecasts to come about? The Australian banks don't have a good track record of housing market forecasts. I remember two years ago, in March 2020, when the same economists who are making these let's call them "interesting" predictions today, similarly predicted a double-digit fall in house prices to occur then, and that didn't eventuate. They underestimated the strength and resilience of the housing markets. This time last year the same economists were late to the party and only after our property markets turned the corner almost 6 months earlier, they realised what was really happening on the ground and forecast strong price growth for 2021. However, once again they underestimated the strength of our housing markets and the strong price growth that ensued. But if price rises house prices fall by the amounts predicted this time around, that will make it the biggest housing downturn in modern history. While we have seen various housing market segments suffer significant price falls, we haven't seen the overall Australian housing market crash like these economists are predicting. The last time property took a downward turn was in 2018, when Australian house prices plunged by about 5 percent overall. Prices also fell 4.8 percent in 2011 after a period of post-global financial crisis rate rises from the Reserve Bank. Those falls pale in comparison to what banks now predict. They are quite remarkable forecasts. Historically we've only had three years of falling prices since 1987. Why would house prices fall? Let's be clear… the Reserve Bank doesn't want the housing markets to crash. It wants that about as much as it wants another strain of coronavirus. Reserve Bank interest rates are currently low to bolster the economy and stimulate inflation and wages growth. Once the Reserve Bank believes inflation is comfortably and consistently within its desired band of 2 -3% and unemployment is low enough to cause significant wages growth, then the RBA will slowly raise its interest rates from stimulatory levels to neutral levels. Of course, there is some conjecture as to how high a neutral interest rate is, but considering the general level of Australian household debt, it is unlikely to require a big rise in rates. There is no reason for the Reserve Bank to raise rates sufficiently high to create a recession or a housing market crash. While falling interest rates increase borrowing power and stimulate higher house prices, historical data shows it takes time for rising interest-rate to drive lower price growth. Why home prices won't crash While falling interest rates create extra borrowing capacity and therefore increased housing affordability, rising interest rates do not necessarily cause house prices to fall. While some commentators are concerned rising rates will cause mortgage defaults there are several reasons why this is unlikely to occur: In general, Australian households are richer than they ever have been and have more equity in their homes because of our property boom. Banks' stringent lending criteria have only ensured they have only been lending to borrowers who could withstand a 2 or 3% rise in interest rates. Many Aussie households have taken advantage of the current low-interest-rate environment and are three or four months ahead in their mortgage payments. Our economy is bounding along, unemployment levels are low and with the prospect of wages rising ahead, most households should not feel mortgage stress. US inflation at 40-year high: Will Australia follow? Last week the United States announced its official inflation figure jumped 7.5 percent in the last year, the largest spike since 1982. A rise in inflation was expected, but this was higher than most economists anticipated, and the US Federal Reserve has already flagged interest rate hikes to cool rising prices. Of course, inflation has been rising globally, with many central banks raising rates or at least flagging future rate rises. The Reserve Bank of Australia (RBA) is one of the few central banks brushing off inflation fears, insisting Australia's economy is in a different position. Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Dr. Andrew Wilson, Chief Economist My Housing Market Subscribe to our weekly Property Insiders videos – www.Prop

A lot has already been written about trends, predictions and forecasts for 2022. Yet today, I'm going to be chatting with leading demographer and futurist Simon Kuestenmacher about the demographic, social, and economic trends that will shape 2022. This is the type of information property investors, business people, and entrepreneurs need to understand to make better-informed decisions. And, of course, I'll be sharing my popular mindset message at the end. Predictions For the Year 2022 The coronavirus pandemic was a great reminder of how difficult it is to make accurate forecasts, especially about the future. But recently, demographer and futurist Simon Kuesetenmacher, the co-founder of The Demographics Group, was prepared to stick his neck out and make 22 predictions about what 2022 holds for Australia in his column in The New Daily. And I'm looking forward to discussing them today. Millennials continue on to family-sized houses. Australia's largest generation reaches the family formation stage of the lifecycle and continues to leave their hipster neighbourhoods in the capital cities, searching for family-sized homes. As the decentralization of the population continues, local governments face predictable challenges. As growth in the regions continues, local councils must make enough land available to accommodate the increased demand for housing. Hybrid work will dominate. Working from home is here to stay, but exclusively virtual working arrangements will remain the exception. House prices will continue to rise. Demand for family-sized housing is guaranteed to be high due to the Millennials. Soon migrants will be returning to the market. Government has no interest whatsoever in pushing house prices down. The average Australian house will get bigger in 2022. Lockdowns pulled functions from outside the home into the home. We entertain, eat, exercise, study, work at home more often. Some (not all) of these changes will stick, and require more space. As we are cocooning more, Bunnings, Barbecues Galore, Harvey Norman, and co will be doing well! We spend less money on traveling overseas, save money by avoiding the daily commute, get away with owning fewer formal items of clothing, and have more money available to throw around. A fair bit of this disposable income will be used to make the family home more liveable. One size doesn't fit all. Customer segmentation will be trickier in 2022. Different levels of lockdown restrictions bred different habits across the country. The socio-economic divide widens. The pandemic didn't impact all of us in the same way. Highly skilled workers kept their jobs and many industries saw big profits while lower-skilled workers lost their jobs at high rates. Baby Boomers will act with a sense of urgency. They feel cheated out of two healthy years of their retirement. They are keen to travel, spend time with the grandkids, and feel "it's their time now". The trend towards sliding into retirement continues. In 2022 a higher share of workers in their 60s and early 70s will remain in the workforce in a part-time capacity. This means downsizing is pushed backward too. Gen X is taking over even more leadership positions. As Baby Boomers leave the workforce it's Gen X's time to dominate company boards and C-level roles. Xer leaders introduce generous parental leave policies and continue to fight for equal pay. The healthcare sector continues to boom. Australia remains a rich and aging country. No industry will grow as fast as healthcare. While Australia will recover economically in 2022, a near-universal skills shortage will hold back economic growth. Hiring qualified staff will be challenging. The short-term solution will be for existing staff to work longer hours. More retail spending will take place online. Expect more vacancies on your local main street. Struggling main streets are terrible for towns and neighborhoods. Smart local governments and business councils will find creative ways of repurposing empty shop fronts. Data released this week saw the fertility rate fell to an all-time low of 1.58 kids per woman in 2020. The impact of COVID will only be seen in the data for the year 2021. This data will be published in 2022 and will show that Australians had even fewer kids during COVID. Women will return to work within a year of childbirth in high numbers. This means demand for childcare will remain stable despite declining births. The world will praise Australia for its handling of COVID. Only two measures will be looked at: deaths per million and the vaccination rate. People across the world will view our nation as a desirable location. Extreme weather events will be occurring more frequently, and we must prepare for this. We can't say whether 2022 will see such events, but we know that they are statistically more likely. The older generations join the young in demanding better digital services. COVID taught many older people to use QR codes, download apps (turns out the COVIDSAFE a

Australia's economy and our property markets don't operate in isolation, so I believe it's good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia's economy, but the world economy to help us understand what's ahead for us. I do this once a month in these Big Picture Podcasts with Pete Wargent. For our first Big Picture podcast for the year, Pete and I will briefly review what happened over the last year and our thoughts on the significant issues that will influence the world economy, Australia's economy, and our property markets. February's Big Picture It wasn't that long ago that we celebrated the beginning of a new year - 2020 - with anticipation of another decade of the roaring 20s. But instead, COVID-19 dominated the news, economic landscape, and our lives. At one point, it almost looked like Australia was on track to become 'Covid free.' And then came Delta, and the economy changed again. Looking back to this time last year, we thought we were over it, and then came Delta, and everything changed, and the southern states and particularly Melbourne was, once again locked down. And when we eventually thought we had this coronavirus thingy licked, along came Omicron. Despite this, our economy flourished, unemployment fell, and our property markets delivered a once-in-a-generation boom. Despite a wall of worry with coronavirus, 2021 was an excellent year for investors, so what's ahead for us? What will 2022 bring? What will be the significant issues that will influence our economy and housing markets this year? Six things that went wrong in 2021 Several coronavirus waves disrupted economic activity. Inflation took off as coronavirus boosted spending on goods and disrupted production. Some key central banks started to remove monetary stimulus earlier than expected. Bond yields surged. Chinese growth slowed sharply. Geopolitical tensions with China, Russia & Iran stayed high. Seven reasons for optimism about economic growth Coronavirus could finally be moving from a pandemic to being endemic – more on this below. Excess savings will provide an ongoing boost to spending. While Fed and likely RBA monetary policy will tighten this year, it will still be easy. Inventories are low and will need to be rebuilt, which will boost production. Positive wealth effects from the rise in share and home prices will help boost consumer spending. China is likely to ease policy to boost growth. While business surveys are down from their highs, they remain strong and consistent. Economic growth Omicron shouldn't slow Australia's economic recovery through 2022 The Australian economy is tipped to grow by 3.6% through 2022, driven by growth in NSW and the NT. 2021 recorded the fastest growth in the Australian economy since 2007, making it the second-fastest growth seen in the past two decades Shoppers have tightened their purse strings and locked themselves down through January, as consumer confidence tallies its worst post-Christmas performance in 30 years. Interest rates Most banks believe interest rates are going to go start increasing in 2022 and the financial markets have priced in an interest rate hike Banks have increased their 3- 5-year fixed rates Six things to watch out for in 2022 Coronavirus – new variants could set back the recovery. Inflation – if it continues to rise and long-term inflation expectations rise, central banks will have to tighten aggressively. US politics – political polarisation is likely to return to the fore in the US. China's issues are likely to continue – with the main risks around its property sector and Taiwan. Russia – a Ukraine invasion could add to EU energy issues. The Australian election – but if the policy differences remain minor, a change in government would have little impact. Outlook for the property markets Continues growth but slower Strong rental growth More choices so a flight to quality Return to form for regional Australia Links and Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2022 Pete Wargent's new Podcast Shownotes plus more here: The Big Picture – Economic trends and influences for 2022, with Pete Wargent Some of our favourite quotes from the show: "None of those cliffs the naysayers warned us about ever eventuated." – Michael Yardney "I bet you there's going to be a few packages that's going to stimulate the economy with an election coming up." – Michael Yardney "You don't have to be the same after today, ever." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Have you played Monopoly recently? Monopoly has been a classic board game for over a century. It's a real estate trading game played for fun… and for a chance to be a real estate tycoon. I recently played with some of my grandchildren, and while it annoyed me that I wasn't able to borrow to buy a property, I was still hooked on the thrill of accumulating Real Estate and collecting rent. I also realized that there are some valuable lessons all investors can learn from playing Monopoly to help them win the game of property investing in real life. Playing Monopoly with my grandchildren reminded me of a very important lesson all property investors must understand – and this is that not all real estate is equal. You see…everyone wanted to buy Mayfair the most expensive street on the board, but no one really wanted the cheap locations at the other end of the board, the names of which I don't even remember. Then there are other locations on the Monopoly board, some of which were more desirable than others. And it's the same in real life…not all real estate locations are equal and just like there are different precincts on the Monopoly board, there are basically 4 types of locations where you could buy properties in the real world. And as you'll see a lot has to do with the demographics of those who want to and can afford to live in these suburbs. Discretionary Locations These are the most expensive locations in our capital cities – the "established money" locations where most of the residents have lived for a long time and where many residents have paid off their home loans years ago. Over the long term this sector of the housing market outperforms the other segments, in part because of its scarcity, but in particular because, as we know, the rich are getting richer than the average Australian and they can afford to and are prepared to, pay a premium to live in these prime locations. Interestingly over the property cycle values in these suburbs are often more volatile. However, over the long term, this segment of the market outperforms the other sectors. Aspirational Locations These are the upper-middle-class areas and gentrifying locations of our big cities. When this wealthier demographic moves into a suburb, they tend to push up property values. As you wander through these suburbs, you'll see a changing neighborhood with new developments and infrastructure improving the quality of services for the residents as well as driving economic and jobs growth. Types of aspiration suburbs 1. Lifestyle 2. Beach/ water/ sand belt 3. School zones 4. Tree change/green change 5. Cultural 6. Knowledge centres Affordable Locations This is where most homeowners and many investors look because that's where they can afford to buy. However, sometimes investors buy in these suburbs because they are "advised" to buy at the cheaper end of the market. Most locations at the affordable end of the property market underperform with regard to capital growth and rental growth. The tenants who rent in these locations live there because that's all they can afford and are unlikely to be able to pay you increasing rents over time. As an investor I would steer clear of these affordable locations – most of these will never gentrify in your lifetime and they will underperform with regards to rental growth and capital growth. Last Choice Locations. In every city, there are suburbs where people live because they really have no choice. No one wakes up in the morning wanting to live in these suburbs, but social circumstances force them to. Of course, investors should steer clear of these locations. So just like owning the right locations on the Monopoly board, owning an investment property in the right location will do 80% of the heavy lifting of your property's returns. But there's more…. Just like not all properties locations are the same, not all properties within each location of the same. Even in the best suburbs, there are some properties I would avoid – they just don't make good investments and others I would be keen to have in my portfolio. A-Grade homes and "investment grade" properties are the type of assets you want to own, and the types of properties where great tenants want to live, not because they need to, but because they want to and are prepared to pay extra to live there. B grade properties still have a lot going for them, and during hot property markets like we are currently experiencing they still perform well, but their secondary location within their suburb or the less than perfect attributes of these properties means they will slump more in downtimes when buyers and tenants are more choosey. C grade properties – these are to be avoided unless they're in a great neighbourhood and your intention is to demolish the property and replace it with something more appropriate for the location. The bottom line Just like in Monopoly, not all real estate is equal. So be careful … don't get stuck with an underperforming property in the wrong

How do you view life? Some people think that what happens in their lives is out of their control. These are the folks who wait passively for what life dishes out to them. They have few goals, and they are the ones who usually hope for the best — that life will be kind to them and that they will eventually be at the right place and at the right time. Other people realize that life is a great opportunity for learning and for realizing their fullest potentials. Some of these lessons are learned the hard way. However, by learning to cope with the challenges, one can come out of the experience wiser and stronger, more able to face whatever else lies ahead. Now, this is as just relevant in property investing as it is in business, entrepreneurship, relationships, in fact in all areas of your life. So, in today's show Mark Creedon and I discuss a series of life lessons you may have learned in the past but have most probably forgotten. And hopefully, by the end of today's show you'll have some great ideas, inspiration, and new plans to make this new year, 2022 the best year of your life. Lessons for 2022 Life is a continuous learning experience. Throughout our lives we keep rising and falling, picking up important lessons along the way. Some of these lessons come from experience, yet there are others that we learn watching others or reading in books. So let's look at a list of important life lessons we should all learn as early as we can: Everything you do matters. Life never gets simpler. But that doesn't mean it won't get better. Rarely do you ever figure anything out fully. (Almost) everybody is faking confidence. If you want to change the trajectory of your life, embrace these rules and apply them: Commitment is what gets you started, consistency is what gets you somewhere, and persistence is what keeps you going. I would add patience – wealth is the transfer of money from the impatient to the patient. Life doesn't get easier, but that doesn't mean it won't get better. Become friends with Failure. So many people fear making a mistake. They're scared of looking stupid in front of people they respect or messing up in front of the boss. But everyone makes mistakes. Here are some facts about failure you should remember so the fear of it doesn't rule your life. Perfection is impossible - It's a tough one to get your head around, especially as most entrepreneurial types are perfectionists, but the sooner you learn that mistakes are inevitable the happier you will be. Success Isn't About Smooth Sailing - You may think that success is the natural by-product of a smooth and well-chartered course. Think of failure as one part of an equation - Failure is the first step, and the next is the solution. Don't worry about what others think - A lot of the time, people are worried about failing because they place too much emphasis on what other people around them think. Every second you spend comparing your life to someone else's is a second spent wasting yours; so stop comparing and create your own definition of success instead. The harder you work, the luckier you get Links and Resources: Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Join us at Wealth Retreat 2022 – find out more here Shownotes plus more here: Here's a list of life lessons you've learned over the years but probably forgotten, with Mark Creedon Some of our favourite quotes from the show: "You're creating your future at the moment." – Michael Yardney "Persistence, of course, is just getting up one more time when you get knocked down." – Michael Yardney "Success, in whatever we're talking about, isn't smooth sailing." – Michael Yardney Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Well, our property markets are up and running for 2022 and already there are mixed messages in the media about what's ahead. But today you'll get some clear indication from Australia's leading housing Economist Dr. Andrew Wilson, whose forecasts have proven to be very correct. I don't know if you've noticed seem to be two types of opinions flouted by the commentators On the one side is the glass half empty crew who see interest rates rising, Omicron repercussions and they're suggesting you've missed the peak of the property opportunities this cycle. On the other side of the market is the glass half full crew who feel more market opportunities are ahead of us, our economy is improving as we are coming out of the pandemic and with our borders reopening opportunities abound. I've been producing a weekly Property Insiders video each week with Dr. Andrew Wilson, so our forecast and commentary are on the record, and as I said, our forecasts have, so far, been very accurate, so I'm sure you'll enjoy today's podcast which is the audio of one of our recent video chats. Topics I discuss with Dr. Andrew Wilson Will RBA Rates Rise in August? - Nonsense Reflecting current data, the latest RBA statements and depressing covid outlook predictions of official interest rate rises as soon as August are clearly non-sensical according to Dr. Will property values will continue rising in 2022? In general property values should increase throughout 2022, but at a slower rate of growth than in Will 2022 be the year of rising rents? Rents should also keep increasing in 2022 as vacancy rates tighten as there is currently a desperate shortage of good rental accommodation around Australia. Are we in for a 2-tier property market moving forward? I can see properties located in the more inner and middle-ring suburbs, particularly in the more affluent suburbs and in gentrifying locations, significantly outperforming cheaper properties in the outer suburbs. Will more property investors will return to the market in 2022? So far this property cycle has been driven by owner-occupiers and first home buyers, but now more and more investors are getting into the market. However, if history repeats itself, and it most likely will, many of these investors will sell up over the next few years as they realize that property investment may be simple, but it's not easy. Will there be a flight to Quality? During the last few years, FOMO (fear of missing out) led inexperienced investors and homebuyers to purchase almost any property that their budget would allow, and they were fortunate as a rising tide lifted all ships. But as the market matures, we will see a flight to quality with well-located A-class homes and investment-grade properties still selling well, but secondary properties having trouble finding buyers. Will our economy will continue improving? With the prolonged lockdowns in Australia's two largest cities keeping people indoors and spending less, households have squirreled away an estimated $200 billion this year. Much of this will be spent over the next few years in an economy-boosting wave of consumption as life returns to normal. Some of it will go to paying down debt and some will go into buying assets. What will APRA do as they watch the market carefully? So far APRA has only really tapped its foot on the brake pedal; it hasn't really pushed down hard on the brake to slow our markets down, but if the property markets continue growing too fast for their liking they are likely to introduce stricter measures. Will most property predictions will be wrong? The property pessimists will still be out there next year telling us not to invest and that our property markets are going to crash. And as has been the case for the last few decades – they will be wrong. The bottom line Clearly, many of us would like to forget the last few years, but that won't be easy. Let's hope 2022 will be a year we are going to want to remember. It will be interesting to look back at the end of the year and see how many of these trends have eventuated. Shownotes plus more here: Dr. Andrew Wilson's property trends and forecasts for 2022 Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Dr. Andrew Wilson, Chief Economist My Housing Market Subscribe to our weekly Property Insiders videos – www.PropertyInsiders.info Some of our favourite quotes from the show: "The higher end of the market can often still afford to buy properties at this stage of the cycle because they've got multiple sources of income, their businesses share dividends, and their properties have gone up in value." – https://propertyupdate.com.au/australian-property-market/ "Well-located A-grade homes and investment-grade properties are still going to sell well, but secondary properties, they may have a bit of trouble finding a buyer." – Michael Yardney "You only need one thing to succeed. Forget all the reaso

2021 was a truly unusual year. After 2020, a year fraught with the effects of the global COVID-19 pandemic that wreaked havoc on world markets, forcing families into their homes with lockdowns and businesses to shutter their doors, 2021 saw the advent of safe & effective vaccines and despite the lockdowns experienced in our Southeastern states, 2021 was an amazing year for anyone involved in property. For many people, their home or investment properties earned more than they did as property values reached new highs and real estate records were broken. 2021 has rewritten the property record books. From property price growth to interest rates, to new home buyers, to refinancing – no matter which way you look records are being broken. To discuss these and which new records we think will be set in 2022 I'm joined by my business partner Brett Warren - national director of the Metropole Properties. One of the records that must have been broken is the extraordinarily strong market appetite for property, but let's dig into a few more records that have been shattered. Prices rose at the fastest pace in more than three decades In 2021 we experienced a property boom, the strength of which no one envisaged at the beginning of the year. The level of price growth has been the fastest in more than 3 decades, but in real terms, it's the 3rd fastest in a century. However, not all property markets will continue growing strongly moving forward. We're in for a 2-tier property market moving forward. Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs. Australians became wealthier than ever before Australian households just keep getting wealthier. A combination of surging property prices and solid share market gains saw total Aussie household wealth grow 4.4% or $590 billion in the September quarter. Wealth is up 20.2% on a year ago – the strongest annual gain in 11 1/2 years. And the number of Australian millionaires is expected to grow to 3,100,000 by 2025. Mortgage rates hit historic lows In 2021 low interest rates and the easy availability of finance spurred record demand for property pushing prices higher Australia-wide. New lending and refinancing also hit an all-time high – I guess that's another record that was set. A record number of new listings of properties for sale The number of properties listed for sale on realestate.com.au hit a historic low in June 2021. However, as lockdowns lifted and restrictions eased, new listings of property sales come to 22.8% in the last three months of the year. This is made for a robust spring selling season with new listings finishing 19.2% higher than the five-year average. Demand for housing hit record highs 2021 was a year that many Australian families upgraded their homes while a record number of Aussies became first home buyers. The combination of low interest rates, the impetus from shifting lifestyle preferences, an influx of ex-pats, low supply of properties for sale, forced savings, and government support measures have all fuelled Australia's insatiable appetite for property to historic highs for much of this year. Properties sold at record speed across the country. With multiple buyers keen to purchase the limited number of good properties for sale, many were forced to make quick decisions and, in some cases, pay a premium to purchase their property. As for the records broken - in November, the median number of days a property was listed on realestate.com.au before it was sold was 30 days, a historic low. Property sales volumes soared An estimated 614,635 properties changed hands in the past 12 months, the highest level in almost 18 years. In fact, in November property transactions were 32.6% above the decade annual average. Rentals finally rose After several years of slow rental growth, in the year to November Australian rent for using Chris 9.4% which was the strongest and you will appreciate any rent since January 2008. Capital cities experienced a net loss of people Australia's closed borders put a halt to immigration in 2021, but tight borders didn't stop Aussies from moving house. In the March quarter of 2021, data from the ABS showed our capital cities recorded a net loss of 11,800 people. This is more than double the decade average and the largest quarterly loss on record. This was prior to the arrival of the delta variant. Demand for luxury property soared and the $3 million club doubled While the value of most properties increased in 2021 the year finished with the luxury end of the market outperforming. Australia's $3 million suburb club doubled again in 2021. Demand for regional property soared, fuelling record-breaking price growth One of the side effects of the pandemic and the resultant lockdowns was that both net regional and interstate migration trending above long run averages This resulted in 2021 being the year when combined regional housing markets have ou

There are many definitions of what it means to be rich. In today's podcast, we're going to discuss the #1 factor that makes poor people rich. Being rich is more a state of mind than a dollar amount, though – the rich can be poor and the poor can be rich. Being rich is really more about having what you want and being able to enjoy your wealth. You need a sense of balance, and true wealth isn't about money or how many properties or shares you have. You need your health. You need time to enjoy and appreciate things. You need somebody to love and someone to love you. You've got to have the ability to give back to the community. You need spirituality. You need to be able to grow and learn. In these podcasts, I talk a lot about money, but money isn't a zero-sum game. One person's wealth can't stop you from becoming wealthy as well. And in today's episode, you'll hear more about building the habits that can help you become wealthy. How can poor people become rich? If no poor person on the face of the earth ever rose from poverty to wealth, you might have a case that it's impossible to become rich if you were born and raised poor. But, reality paints a very different picture. There are thousands of poor people every day who become rich. According to Forbes Magazine, just in America, there are approximately 1,700 working-class people a day who become millionaires. And, according to Tom Corley's Rich Habits study, 41% of the 177 self-made millionaires he studied were born and raised in poverty. What was the #1 factor that helped them shake off the chains of poverty and become wealthy? Changing their daily habits. Changing your habits can be hard, especially if you don't know how. Here are some short-cuts to changing habits. Habit Merging When an old habit does not perceive a new habit as a threat, it does not wage war against the formation of the new habit. Law of Association Old habits can be triggered by the individuals you associate with. If you are trying to get rid of some old, bad habits you need to limit the time you spend associating with those individuals who act as a triggers for those bad habits and begin associating with individuals who possess the new good habits you are trying to adopt. You can find these new individuals in network groups, non-profit groups, trade groups or any group that is focused on pursuing similar goals. Changes in Your Environment It is much easier to abandon old habits and form new habits when your environment changes. New home, new neighbors, new friends, new job, new colleagues, new cities, etc., all offer an opportunity to forge new habits. When your environment changes, you are forced to think your way through each day. Start Small It is far easier to change your habits if you start with small habits. Small habit change involves adding habits that require very little effort. Examples include drinking more water during the day, taking vitamin supplements or listening to audiobooks while you commute to work. Schedule Your New Habits Sixty-seven percent of self-made millionaires in my study maintained a to-do list. To-do lists are a way of processing success into your life. One of the tricks self-made millionaires use is to incorporate certain good daily habits onto their to-do list. Firewall Your Bad Habits One trick to habit change is to make it harder for you to engage in a bad habit by creating some type of firewall between you and the bad habit. Links and Resources: Michael Yardney Tom Corley - Rich Habits Get your own copy of our international bestseller Rich Habits Poor Habits Join Michael Yardney and Tom Corley at Wealth Retreat 2020 – click here and register your interest Wondering what's ahead for our property markets? Organize a time to speak with the team at Metropole by clicking here Shownotes plus more here: The #1 Factor That Makes Poor People Rich with Tom Corley | Summer Series Some of our favourite quotes from the show: "At no other point in history have so many people escaped bitter poverty in such a short time as in China." – Michael Yardney "Small changes give you momentum. They increase your confidence." – Michael Yardney "I think the message is, if other people can do it, you can do it." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

Do you have children or are you planning to have children? How about grandchildren? If so, this episode is for you. Even if you haven't got children, you'll get some great money lessons from this episode. Today we'll share seven tips to make sure your children grow up rich. And it's not just about money. We're talking about tips that will help children find success in all areas of life. So how do you go about creating a rich child? Here are some of the things we discuss: Reading to Learn Tom Corley found that 88% of the rich folks in his study spent 30 minutes or more every day reading to learn, whether it was about money, how to succeed in their industry, self-help, biographies of successful people and history. Cultivating relationships: You want to associate with those people that typically upbeat, optimistic, enthusiastic, positive types. If you're not in a circle that meets those criteria, volunteering at a community nonprofit is a good way to find them. Exercising: Because exercise improves brain performance by increasing the amount of oxygen and helping the health of the neurons, people who exercise think faster and have better memories—which make you more competitive in the workplace. Managing anger: It's normal to feel anger and frustration, but how you express it can make or break your success. Exploring talents: When kids are little, they get to do a lot of activities such as art, music, theater, and sports. But as they get older, they focus on just one or two. But that's a mistake. Exposing kids to numerous activities helps them explore their talents Keeping an abundance mindset: Of all the habits, this is the most significant that plays out in every aspect of our lives. Our brains are wired to emulate our parents from the start. Dream-setting: Dream-setting is a process. It's visualizing what your ideal life would be. The self-made millionaires in his study would map out what their dreams are at least 10 years into the future, and then build goals around the dream to make it a reality. Shownotes plus more here: 7 tips to make sure your children grow up rich (This is even for you if you don't have children) | Summer Series Some of our favourite quotes from the show: "Being rich is about wealth in all facets of life." –Michael Yardney "You definitely have to grow and learn by having that habit of reading. It's a success habit not just of children, but of adults." – Michael Yardney "I want an expandable pie where if we all do well, are more productive, our country is better. There's enough for everybody." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

As we start a new year it's interesting to look back and reflect on the challenging year we experienced in 2021, and how well the Australian economy and Australians in general have survived. It wasn't really that long ago that there were credible predictions that tens of the thousands of Australians would lose their lives, the health system wouldn't cope, there would be mass unemployment and the economy would fall into an abyss. But fortunately, 2021 finished with our economy in recovery mode, and throughout the year we experienced a once in a generation property boom with our property markets breaking multiple records and finishing at record high levels. Last year the number of suburbs where the median house price is more than $1 million has doubled, as a have the number of suburbs where the median price is over $3milion and the average Australian household is wealthier than they ever have been. No doubt there are challenges ahead, but there's also lots of good news to start off the year and that's what I discussed with Dr Andrew Wilson, chief economist of My Housing Market, in a 90 minute online live Masterclass at the end of the year. And the feedback I received after the event was amazing – I've never had as many people during event leave such positive comments in the chat room or as many positive emails afterwards, so I thought I must share this with you as a subscriber to my podcast. This particular episode of my podcast is much longer than usual because Dr Wilson gave so much great information, but it's not the whole event. But it's definitely worth staying to the end to hear Dr Wilson is forecast for property around Australia for 2022. If you happened to be on that event, I think it's worth listening to the gold that Dr Andrew gave us once again, and if you weren't at the event I suggest after listening you going to the live webinar replay where you can see many of the charts that Andrew and I discussed. I'll leave a link in the show notes. Some of the Topics Discussed in Dr Andrew Wilson's Presentation The big growth markets are starting to stabilize and push buyers out of the market The effect migration has on the property market The underlying supply position in Australia The changes in predictions for interest rates Interest rates generate house The effects of the reserve bank's rate cuts Why Brisbane is a boom market now Adelaide's recent strong performance The relationship between higher interest rates and lower house prices, and vice versa Affordability and rental crises Whether Australia will be affected by the inflation overseas Specific industries that are having challenges Why higher interest rates are being predicted over the next year or so Why the bank economists are suggesting locking into loans with today's interest rates The out-of-cycle interest rate rises How often the forecasts change What the rental markets are like at the moment The latest data on house prices Whether there are concerns about the drop in auction clearance rates Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Dr. Andrew Wilson, Chief Economist My Housing Market Watch the replay of the whole Masterclass with Dr. Andrew Wilson by clicking here Shownotes plus more here: Australia's leading property economist busts some myths and gives his forecasts for 2022 Some of our favourite quotes from the show: "We're not just going to have an affordability crisis, we're going to have a rental crisis where all these people are going to need to live somewhere." – Michael Yardney "Think outside the square. Stop following everyone else's catchy little headlines like a bunch of sheep." – Dr. Andrew Wilson "It looks like now the top affluent areas and the gentrifying suburbs are overperforming moving forward." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Success is no accident. The most successful people in life may not always seem like they have much in common. How are The Beatles similar to Steve Jobs? Or Warren Buffett and Shane Warne? But when their traits, habits, and work ethics are distilled down, these unlikely characters share many similarities. They do the work, they turn up, they believe in themselves and sometimes, they even wear the same clothes. In today's Build a Business not a Job Podcast I chat with Mark Creedon, founder of Business Accelerator Mastermind about a dozen techniques to triumph. Drive – know where you're going Whether it is the drive to be the best in the world at a specific skill – spin bowling – or the passion to build the most user-friendly tech experience at Apple, successful people are focused on their end goal. Proven losers Once people have the ability to spring back from their losses, they are more able to take the risks and challenges life inevitably throws out. And once that mindset is in place, coupled with a focus on achievement, a loss can create a gain. Let others do their part There is a necessary time to allow others into the business and to allow them to do the job in their way. By allowing others to take the load and share their knowledge, the outcome can be greater than the sum of its parts. Avoid distractions – from their goal and in daily life Achieving a distraction-free state of flow is the best and most efficient way to work and get things done. Communicate. Without it, 'It's like winking at a girl in the dark' Berkshire Hathaway founder Warren Buffet says communication skills are the most important traits for success. "If you can't communicate, somebody said, it's like winking at a girl in the dark," he says. "Nothing happens." Break the mold Successful people are often willing to stand out. Test cricketer Stuart McGill says spin legend Shane Warne "broke the mold" in cricket, not only with his spin action but also with his off-field antics. This pairing of performance and personality brought new followers to the game. Think on your feet The ability to be agile and take chances – even if they fail – is a key habit of the successful. Let's do it People who thrive see the outcome. They determine a course of action and set their minds to achieve it. Routine is a common element for those who succeed. Yes, yes, yes, no. Make the decision Successful people are decisive. They may not always be right, but at least they make a decision, which allows for a speedier process and new possibilities. 'Done is better than perfect' This leads on from decisiveness. The philosophy is about achieving small steps, not about sacrificing quality. As there is no such thing as perfection – which is different for different people – many successes consider milestones and progress more important than a mythical ideal. 'I get knocked down, but I get up again' Resilience is considered the most important characteristic for success. People will inevitably get knocked down, criticised, rejected, or considered wrong, but with stamina and grit, many people overcome. Old-fashioned hard work, turning up every day, gets results. T-shirt and jeans Many successful people have systematized their life to strip back distractions. By either planning ahead or making a routine of everyday tasks, they can reclaim time and energy to think about other outcome-focused enterprises. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Join us at Wealth Retreat late in 2020 in join- find and more and register your interest here Shownotes plus more here: 12 habits of highly successful people with Mark Creedon | Summer Series Some of our favourite quotes from the show: "I think one of the worst things that can happen is to get it right the first time." – Michael Yardney "I think one of the traits of successful entrepreneurs, businesspeople, professionals, is that they get going knowing they don't know it all, but they know enough to get going and understand that they're going to learn the rest along the way." – Michael Yardney "It's just too hard to do it on your own." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

What will life be like when the COVID-19 crisis passes? What aspects will stay with us, and what will disappear? We've been thrust into a moment of rapid change, but most of us don't like change. It makes us feel uncomfortable. We like a level of certainty about our future, health, and jobs, as well about the worlds of finance and property that most of us are interested in. But there are lessons in history that can provide us with valuable insights. In today's episode, we'll talk about some of the things that never change in a world that never stops changing. Successful investors and businesspeople need to be prepared for change but also understand the things that don't change. So, by the end of today's show, you'll come out with some ideas about how to get some more certainty in these uncertain times. I'm also going to share a mindset moment from one of my mentors and have a chat with Ken Raiss about estate planning. Some things that never change in a world that never stops changing The things that never change are the most important things to pay attention to. However, change gets the most attention because it's exciting, it's surprising, it's something that the media can comment on. You see…predicting the future is hard. Very few can do it. On the other hand, understanding what stays the same is very useful. Particularly in challenging times like we're currently experiencing. Of course, I still have no idea what's going to happen in the future, but I'm a little less surprised whatever does happen if I have a handful of assumptions that I can put my faith into to guide me moving forward. So, let's look at some things that never change in a world that never stops changing. More people wake up every morning wanting to solve problems than wake up looking to cause harm. I'm an optimist and have faith in society, but I recognise that those with a negative message get more airplay in the media and incite negative sentiment in our community. Fact is… in life you get whatever you expect to get. The only question is, what do you want? If we were not optimistic, none of us would bother setting up a business, employing people, taking risks, or investing in property. If we were totally realistic about how often people fail, how often things go wrong, how most property investors never build a substantial property portfolio, we would never even bother getting started. Your outside world is a reflection of what's happening inside your mind. So, feed it with positive, optimistic thoughts. The world breaks about once a decade. This is an interesting expression I learned from columnist Morgan Housel of the Collaborative Fund. But it's true and there seem to be very few exceptions to this. There is a major disruption every decade or so. It could be an economic, political, military, or social issue. The bad news is never as bad as it sounds How many times does the end of the world as we know it need to arrive before we realise that it's not the end of the world as we know it? Of course, those with a long-term perspective, who have lived through a number of economic shocks and property cycles, tend not to get as shocked when major events like we're now experiencing hit us. However, those who have not experienced these types of shocks tend to worry more and imagine the worst because they have no perspective to rely on. 4. This too shall pass Nothing too good or too bad stays that way forever. I've found these types of major upheavals are not as scary if you have the underlying belief that they'll keep happening but that in the long term they don't prevent the long-term growth of our economy and our property markets. History doesn't really repeat itself. We've all heard it before - "History repeats itself!" It's an inane statement that seems so wise on the surface but crumbles under serious scrutiny. Morgan Housel wisely said: "History is mostly the study of unprecedented events, which, ironically, we then use as a map for what could happen in the future." Estate Planning with Ken Raiss Estate planning is something a lot of people don't think about until it's too late. But you want to be able to pass on your wealth in an efficient manner, and estate planning is crucial to your overall wealth plan. Some critical estate planning documents: A will – your will should be set up so that instead of passing on your assets to your beneficiaries directly, they're passed on in a testamentary trust. This has tax benefits and helps to ensure that wealth remains in the family. Non-Estate Assets – You may need either a Binding Death Nomination or Superannuation Will in order to distribute superannuation funds. Enduring Power of Attorney – this document pass decision making authority onto another person in the event that you're physically or mentally incapacitated. These documents can give authority that is as broad or as specific and narrow as necessary. Medical Power of Attorney – This document helps you to finalize your wishes in relation t

Can property prices really keep rising considering where they are today? And how much are property prices likely to fall once this cycle comes to an end? These are some of the questions Brett Warren and I are going to discuss in today's podcast To do this we are going to look back at history and see what we can learn from the past 50 years of economic and property price changes and what has driven them to help give you some clarity on what's ahead for our property markets and the value of your and my home. What History Tells Us About What's Coming It's interesting how the narrative in the media has changed – only a few months ago it was about a booming property market and now the media is full of questions about how long this boom can last and how far property values are going to fall once it's over. Can property prices really keep rising? The simple answer is yes property values can keep rising, but not everywhere and not to the same extent as they have over the last year. What's going to happen to property prices in the short term? Will they fall after this boom ends? While property prices are notoriously difficult to forecast, in my mind it's hard to see the same size downturn befalling the current market, at least in the near-term. Let's look back and see what we can learn if I look back on close to 5 decades of investing, and see what may be ahead. In 1970, the median Sydney house price was $18,700 The median price in Perth was a relatively $17,500 In Melbourne, median price was just $12,800. In 1971, house prices were $11,900 in Adelaide They were $18,000 in Canberra They were $11,875 in Hobart The earliest data for Brisbane is for 1973, when the median house price was $17,500. In 1965, the unemployment rate was 1.3 percent For the period from 1964 to 1971, the unemployment rate was 1.9 percent or lower. In both 1974 and 1975, annual inflation was over 15 percent From 1973 to 1983, inflation averaged 11 per cent per annum. So why has inflation been so low for the last decade or more? Firstly, unionised labour is now a fraction of what it used to be. Second, the world has been investing heavily in technology and in particular, automation for the last decade. Thirdly, globalization. Open trade has also led to higher rates of immigration. Four, immigration. There is little doubt that a high level of immigration, especially when a large proportion of the migrant influx is looking for work, limits domestic wage growth. Five, Long Covid #1. We see a repeat of 2021, being that we remain constrained due to new Covid mutations. We spend less when we are locked down What about affordability? There are a number of affordability measures used and most of them are not very useful Ratio of dwelling values to income – this is the most widely used and internationally comparable method The number of years it takes to save a 20% deposit The proportion of household income required to service a new mortgage The proportion of household income required to pay rent So, on the one hand, it is difficult to get into the property market at present, and I know I'm going to annoy some people, but it's not just an issue of affordability – it's also an issue of expectations. Some young millennials are expecting to start their property journey in the type of house it took their parents to 30 or 40 years to acquire What about mortgage stress? In my mind, the best measure of mortgage stress is home loan arrears or home loan defaults. Currently, home loan arrears (those more than 30 days late) are only 1.14% Is there really a debt bomb waiting to blow up? No. We have a stable banking system. We have jobs and Income security We've stashed our cash and most households are better off financially than before the pandemic. So what's likely to happen to property values in 2022? I see house prices growing more slowly in 2022 and then the market peaking around in 2023 or whenever APRA or the Reserve Bank intervenes. In general, I agree with the latest house price forecast of the big banks suggesting that property values may increase around 6 to 8% in 2022. If our economy picks up as well as the RBA hopes it will, and if we get the 200,000+ migrants coming to Australia next year, and a big if is if that if there are no more major variants to Covid, our property markets could perform even better than that. At the same time our rental markets, which are currently very undersupplied, will experience strong rental growth. However, as we said earlier, moving forward they will be a two-tier property market where properties in the lower price brackets and some of the regional areas will become affordable to the locals and therefore not increase much in value. So don't count on the rising tide lifting all ships. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: How

If you're a poor negotiator, you're going to spend a fortune, if you're a good negotiator, you'll save a fortune, if you're a great negotiator, hopefully you'll make a fortune. Success in life depends upon your ability to influence. And I've just recently had my 9th book published - Negotiate, Influence, Persuade. In today's podcast, Mark Creedon has a chat with me and I share some tips from my book. Now if you think about it, life is one long negotiation. Either you're buying what somebody else is telling you or selling you, or they're buying what you're saying. And you negotiate all day in your life, with your spouse, your children, your work colleagues, your customers, and your clients. At the end of today's show, I hope you're going to know some negotiating rules and you're going to be a better influencer and more persuasive. Some of the topics we discuss in today's episode: Why negotiation is so important Whether you realize it or not, you're negotiating all of the time, not just in business, but in life. You need to know more than just negotiating techniques. You need to know how to communicate with people, how to do it in different ways, such as digitally, and how to ethically influence and persuade people. How Negotiate, Influence, Persuade is about more than just negotiation The book isn't just for salespeople, it's also for consumers, because we all negotiate every day. The book is meant to help readers get the best deal whether they're buying or selling. Further, the book is meant to help readers get what they want when they want while still maintaining good relationships. It includes a theme of using negotiating skills in an ethical way The book includes 27 rules of negotiation. These are three of them Everything's negotiable. That doesn't mean you're always going to get what you want, but it means that the potential for negotiation is always there. You should know what you want before you negotiate. Know what the highest price you'll be willing to pay is, or the lowest price you're willing to sell for Treat negotiation as a game. If you're too emotionally involved, you'll lose perspective You often hear that you should never be the one to make the first offer Actually, people who make the first offer actually usually have the upper hand. How important preparation is in negotiation It's important to know what you'll be willing to pay or accept It's also necessary to understand the other person and what they're trying to achieve. Why building rapport is such an important part of the negotiating process 95% of persuasion occurs at the subconscious level Some of the different types of bias in a negotiation: Cognitive bias Anchoring bias Bandwagon bias We don't always realize how much we negotiate. You're negotiating when you're trying to get the best table at the restaurant, decide who will take out the trash, or determine what to watch on TV 3 sources of power in negotiation: Time power Information power Alternative options power Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan. Click here and have a chat with us Get your own copy of Negotiate, Influence, Persuade by clicking here Some of our favourite quotes from the show: "If you're a poor negotiator, you're going to spend a fortune, if you're a good negotiator, you'll save a fortune, if you're a great negotiator, hopefully you'll make a fortune." – Michael Yardney "In my mind to become a power negotiator, you need to understand human psychology, human nature." – Michael Yardney "If you want to become a better negotiator, you're going to have to understand how the mind works, yours and the prospect's mind." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What's ahead for property in 2022? If you're curious about what will be affecting our property markets in 2022, you will love today's show, because Pete Wargent and I discuss 8 trends that will shape the property markets for 2022 and beyond. Property trends for 2022 We experienced a wild ride in property in 2021, didn't we, so what's ahead for 2022? While our property markets are slowing down as the year ends, there is still significant momentum, so the main factors which will determine what happens to property next year will depend on what the RBA does to interest rates and if APRA tightens the screws further on lending. But despite the best predictions, if history has taught me anything, it is that there will be an unexpected X factor coming out of the blue to undo the most seasoned property forecasts, either on the upside or the downside. However here are seven property trends I expect to happen in 2022 Property values will continue to rise While many factors affect property values, the main drivers of property price growth are consumer confidence, low interest rates, economic growth, and a favourable supply and demand ratio. As always, there are multiple real estate markets around Australia, but in general property values should increase throughout 2022, but at a slower rate of growth than 2021. We're in for a 2-tier property market moving forward. While most property markets around Australia have performed strongly so far this cycle, moving forward the rate of property price growth will slow and there are several reasons for this including: Affordability issues will constrain many buyers. The impetus of low interest rates allowing borrowers to pay more has worked its way through the system and with property values being 20- 30% higher than at the beginning of this cycle at a time when wages growth has been moderate at best and minimal in real terms for most Australians, means that the average home buyer won't have more money in their pocket to pay more for their home. The pent-up demand is waning – While there are always people wanting to move house and many delayed their plans over the last few years because of Covid, there are only so many buyers and sellers out there and there will be fewer looking to buy in 2022. APRA – is intent on slowing our markets using macroprudential controls This will lead to a two-tier property market - in other words, not all locations will continue growing strongly moving forward. I can see properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, significantly outperforming cheaper properties in the outer suburbs. Our economy will pick up Households have squirreled away an estimated $200 billion this year, with the prolonged lockdowns in Australia's two largest cities keeping people indoors and spending less. Some of it will go to paying down debt and some will go into buying assets. We're already seeing this in retail spending, and it's been apparent in our property markets throughout the year as many homeowners upgraded. The "official" interest rate will remain unchanged In my mind, the official RBA interest rate is likely to remain unchanged throughout 2022. Australia's economy is still operating below its potential with economic growth and wages growth not strong enough to justify an interest rate increase. APRA is likely to tighten its macro-prudential measures APRA has only really tapped its foot on the brake pedal; it hasn't really pushed down hard on the brake to slow our markets down so if the property markets continue growing too fast for their liking, they are likely to introduce stricter measures. A flight to quality As the market matures, we will see a flight to quality with well-located A-class homes and investment-grade properties still selling well, but secondary properties having trouble finding buyers. More property investors return to the market So far this property cycle has been driven by owner-occupiers and first home buyers, but now more and more investors are getting in the market. Of course, this always happens after a period of strong housing price growth when a whole new generation of investors read how well others have done by owning property. Here's something I can guarantee will happen in 2022 The property pessimists will still be out there telling us not to invest and that our property markets are going to crash. And as has been the case for the last few decades - they will be wrong. Where to buy your next property? If you want to outperform the average investor, if you want to develop financial freedom through property investing, then don't start by selecting a location, or looking for that ideal property. Things have to be done in the right order – and selecting the property comes right at the end of the process. The property you will eventually buy will be the result of a sequence of questions you will need to ask and answer and a series of decisions you'll need to make before you even start looking

What does it take to become a successful investor? You know, one that builds a large property portfolio rather than selling up over the first few years like happens to about half of those who get involved in property. What does it take to be part of the 1% of property investors who build a portfolio of six or more properties? Now that was a question asked of me recently by Aaron Christie Davies for his Australian Property Investor Podcast and I think I know the answer to this because an audit of our clients at Metropole showed that they are 7.3 times more likely to own 6 or more properties than the average Australian property investor I believe Aaron elicited some great insights from me by asking the right type of questions, so I asked for permission to replay his interview with me audience of my podcast. So, whether you are beginning the property game or well on your way to being in the top 1% of investors, I'm sure you'll get some benefit. Topics I discussed with Aaron Christie Davies The value of giving How Michael's property investment journey started Michael's beliefs on time in the market vs. timing the market Michael's process for building his portfolio Michael's business, Metropole, and how it unfolded What happens when portfolios lose their momentum How Metropole helps clients reach the next level The message of rich habits and poor habits and why it's important The importance of a good team and a strategy Links and Resources: Michael Yardney Aaron Christie- David - Atelier Wealth – Australian Property Investment Podcast Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: The secrets of the top 1% of property investors Some of our favorite quotes from the show: "I didn't start off knowing what I wanted, I didn't have a plan, I didn't have a strategy, other than I knew I wanted to be rich and I wanted to be like those other, wealthy property owners." – Michael Yardney "You can get to a particular level, but not many people get to the next level." – Michael Yardney "So, the difference between the rich and the wealthy is the wealthy don't have to worry about money while the rich do." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Our current property boom is going to create a whole new generation of wealthy Australians. But since most people who become involved in a property boom don't become financially independent, last week I started this special series of podcasts discussing 40 lessons I learned in the last 40 years of property investment to hopefully help make sure that you're one of the ones who does succeed. Last week, I shared 20 property lessons, and today I'm going to share the other 20. 40 property investment lessons I learned in the last 40 years – Part 2 Last week, I asked, with the benefit of hindsight, would you have bought an investment property in 1980? What if I warned you about the recessions, pandemics, and other challenges that were coming? What I wanted to share with you in this two-part series are the lessons I learned in that time period that made me a better investor. No one really knows what's going to happen to the property markets. Don't listen to who most property investors listen to for investment advice. Timing the property market is just too hard. It's much better to buy the best asset you can afford and hold it for the long term. Any property can become an investment property – just kick out the owner and put a tenant in place and it becomes an investment property. But not all properties currently on the market are "investment grade" and will deliver wealth-producing rates of returns. Don't rely entirely on property data – it can be misleading and can be twisted to say almost anything. Property investment is part science and part art – you need to understand and interpret data (science) but you also need an on-the-ground perspective to employ that data (art.) There are 4 ways you make money out of property: Capital growth, rental income, tax benefits, and forced appreciation or manufactured capital growth through renovations or property development. But these streams of income are not all equal. Tax-free capital growth is the most important. Cash flow is important to keep you in the property game, but capital growth will get you out of the rat race. You will never get rich from earned income or savings. Location will do around 80% of the heavy lifting of your property's capital growth. Be greedy when others are fearful and be fearful when others are greedy. Don't do what most property investors do. The majority of property investors fail. Treat your property investments like a business Don't look for fun or excitement in your investing. Diversification is for people who don't know how to invest. Having the right mindset is critical to investment success. While knowledge is important, successful investors take action. There are always risks associated with investing. Don't be afraid of failing, because the biggest risk is not doing anything to protect your financial future. Don't waste your time worrying. Most things you fear will happen never do. They're just monsters in your mind. Never give up. You will have failures along the way – in fact, I'm a real success at failure, but each time I'm knocked down I get up again. You need resilience to be successful. Resources: Get a range of my best eBooks and reports at PodcastBonus.com.au Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: 40 property investment lessons I learned in the last 40 years – Part 2 | Summer Series Some of our favorite quotes from the show: "There are too many enthusiastic amateurs out there at the moment offering investment advice." –Michael Yardney "You need to make your money work hard for you, even when you're asleep." – Michael Yardney "Everyone does everything with money, no matter how silly it looks, because at the time it makes perfect sense to them." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

It should come as no surprise that the current property boom will create a new generation of wealthy Australians. However, if history repeats itself, most people who get into property investment this cycle won't become financially independent. Just look at what happened during the last property boom, and the ones before that. 92% of those who held onto their property never got past the second property. You can't develop financial independence from just one or two properties. Real estate has soared in value by more than 500% in the last 25 years, but most investors failed to develop a substantial portfolio. So, I've put together a special two-part series to help you make the most of our property markets. In today's show and the next one, I'm going to share with you 40 property investment lessons I've learned in the last 40 years to help you become a successful property investor and create lifetime wealth. Let me ask you a question… With the benefit of hindsight and knowing what you know now, if you had the opportunity to do so, would you have bought an investment property 40 years ago? I bet your answer would be yes. But what if you didn't have the benefit of hindsight and there we both were, back in 1980 and just as you were about to invest in a property I told you that in the next year or two Australia would fall into a recession and that in 6 years' time negative gearing would be removed only to be reintroduced a couple of years later. What if I told you there was going to be a stock market crash in 1987, and a severe recession in the early '90s, meaning that in the first decade of owning your investment property you would have had to face all those headwinds. Of course with the benefit of my time machine and you still being back in the 1980s as you planned to buy your first property I would also warn you about the upcoming AIDS scare and the SARS pandemic, the Asian financial crisis, September 11th, the Global Financial Crisis, the Coronavirus induced world recession. Would still have had the courage to buy that property back then in 1980? The answer for many people would now be: "No…why on earth would I invest in property knowing there are so many challenges, problems, and risks ahead?" Of course, they would have missed out on some amazing wealth-building opportunities, wouldn't they? I was already investing for almost a decade back in 1980 and I did buy another investment property that year. And over the years the capital growth I achieved from my investment properties allowed me to keep adding to my portfolio meaning that today I have a significant "cash machine" that gives me the lifestyle choices I was looking for back then. Of course, along the way, I've had some great investment wins but I've also made more than my share of mistakes. And I learned many lessons that I wish I knew back then, so here are… 40 property investment lessons I learned in the last 40 years The economy and our property markets move in cycles. Booms never last forever, neither do busts. That is mainly because most of us get swept up in the optimism or pessimism of others. Despite the ups and downs, the long-term trend for well-located capital city properties is rising values. Even though they are armed with all the research available in today's information age, economists never seem to agree where our property markets are heading and usually get their forecasts wrong. Every year we get hit by an X factor – an unforeseen event or situation that blows all our carefully laid plans away. Then every decade or so we have a major event and the world "breaks." There are multiple property markets in Australia. Property investment is risky in the short term, but secure in the long term. It is definitely not a way to get rich quickly Since property is a long-term game, don't look for "what works now." Instead, look for "what has always worked." Residential property investment is a high growth, relatively low yield investment class. Don't try to make it something different. At times of poor or no capital growth, strategic property investors "manufacture" capital growth through property renovations or development. Residential investment is a game of finance with some houses thrown in the middle. Taking on debt is not a problem. Not being able to repay debt is an issue, meaning cash flow management is a critical part of wealth creation. Property investment is a process, not an event. Strategic investors not only buy properties, but they buy themselves time to ride out the cycle by having financial "cash flow" buffers in place. Wealth is the transfer of money from the impatient to the patient. I must thank Warren Buffet for that quote. The media is not there to educate you, but its job is to get you to click on their links so that they receive revenue from their advertisers. So don't rely on the media for investment strategy or advice. There will always be someone out there telling you not to invest in property. There will always be people

Not all investors are created equal. If you want to become a successful property investor you really need to understand the five levels of investing which is a model that I've designed to explain how most investors progress along their path to financial freedom. Just to be clear, this has nothing to do with your level of income. It has a lot to do with your financial fluency and financial intelligence. If you want to work your way up the rung of investors, you're going to have to understand which level you're at right now present and what you have to do to work your way up to the next level. After today's episode, you'll understand more about the levels and where you fit into them. After I've explained the five levels of investing, I'm going to share a mindset message from one of my mentors. The Five Levels of Investing Level 0 – The Spender Those at level 0 end up with a high level of debt because they spend and borrow, living paycheck to paycheck. They aren't really investors at all; they're spenders and borrowers. Level 1 – The Saver Those at level 1 have one main investment – their home. They save money, but they save it to spend it later, not to invest it. Savers are often unwilling to take any risks with their money and fear financial matters that look risky. Level 2 – The Passive Investor Those at level 2 are aware of the need to invest in order to grow wealth. However, they don't necessarily understand the rules of money and may be hanging on to outdated ideas about finance. Passive investors look for outside sources and "experts" to tell them what to do with their money instead of educating themselves, which can make them easy prey for get rich quick schemes. Level 3 – The Active Investor Those at level 3 are actively involved in their investment decision and take responsibility for their own financial futures. They focus mainly on growing their asset base. Active investors understand that they can't do it all themselves, so they form networks of advisors and peers or join Mastermind groups. Level 4 – The Professional Investor Those at level 4 have risen to a level where they have built and now manage their own investment business. They have a substantial asset base that generates enough passive income to pay for their lifestyle, and they continue to grow their portfolio whether or not they work a real job. Professional investors retain control of their investments while employing a team to help them continue to achieve consistent results. Where do you fall in the levels of investors? Not everyone makes it to Level 4. In fact, few get that far. But you can, once you understand why the rich keep getting richer. Links and Resources: Michael Yardney Metropole Property Strategists Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat in June this year – find out more here: Wealth Retreat 2020 Shownotes plus more here: Do you understand the Five Levels of Investing? | Summer Series Some of our favourite quotes from the show: "Level 4 investors rarely stop educating themselves." – Michael Yardney "A final point about Level 4 investors is that they teach their financial knowledge to their children. They pass on their family fortune to future generations." – Michael Yardney "You can be a low-income earner when it comes to your day job, but still be a level three investor and have financial security." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to take advantage of our property markets and become financially independent, today's show is for you, because I've got 3 segments during which I share a number of concepts that will help you along the way. First, we discuss whether property investing is an art or a science. Spoiler alert: it's both. But you still need to listen to the balance of the show because I'm going to explain how and why they interact. I'm also going to discuss the concept of becoming a borderless investor – investing in another state. I know a lot of people find this difficult. I see this particularly among intelligent and analytical people because they want more control. But bear with me as I explain some of the benefits and why you should at least consider becoming a borderless investor. Then in my mindset moment, I'm going to share a lesson that's made a difference to how I structure my life and I'm going to talk about the big rocks in the jar of your life. Is successful property investing an art or a science? So, Let's look at the three types of property investor. The passive investor A passive investor tends to spend little time doing any due diligence and is keen to buy one of the first properties they come across. They aren't really interested in understanding all of the ins and outs that go along with creating a property portfolio such as finance, tax laws, compounding and so forth. Instead, a passive investor tends to let their emotions get involved in their investment decisions, which we know can lead to disastrous results. The active investor An active investor puts in some degree of work in order to find a good investment prospect, including conducting some due diligence in the hope they can increase the likelihood of making a good and viable investment purchase. They generally look to gain a basic understanding of the principles involved in property, finance and taxation and would look to seek professional advice for help with structuring a portfolio. The analytical investor An analytical investor is the far extreme of a passive investor. Instead of undertaking little research and due diligence, this type of investor tends to go overboard and spend months, or even years, examining data, seeking advice and reading material in order to look for the 'ultimate' investment property. While it may seem that an analytical investor is more likely to make successful investment decisions, it's actually not the case. The problem with property data There's no doubt that it's important to understand the property fundamentals and research appropriate and reliable property data, and the more extensive the data research is and the longer it goes back, the more accurate it is in forecasting future trends. But the problem is, data is often wrong. Unfortunately, the most commonly-reported data - median price data - is actually very unreliable. There are three reasons: Because median prices fluctuate depending on the way the property is sold. In many suburban areas, where property sold a number of years ago and vacant land has now been replaced by new homes, this data is irrelevant. Similarly, new apartment or townhouse developments can skew median house prices of other local properties. Gentrification and renovation changes the nature or quality of properties which again, results in the median house price for the area being incorrect. Using median price data is risky for investment purchases and can cause costly investment mistakes. Just because median prices go up in the area doesn't mean that value of any local property also increases. So is property investing an 'art' or a 'science'? Both. It's true, successful property investors need research and data to aid an investment decision, but it's not enough on its own. Investors also need to compliment any applicable data with local area knowledge and expertise, plus experience and perspective in order to make the best-informed choices. Someone looking at data can make it say almost anything they want; the trick is knowing how to take that information and use it in conjunction with some practical experience in order to accurately make an investment decision. In other words, data and research is a critical step in getting ready to invest, but it is only one of the many important steps. What's the key lesson here? Property investment is an expensive game, and you can't afford to get it wrong. Engaging with experts with many years of experience can help you avoid making the costly mistakes made by so many naïve investors. Remember, property investment data is crucial when making an investment decision, but it's only half of the work. Should you become a borderless investor? You know…invest in another state? The short answer? Yes, absolutely! The long answer? There's so much you need to consider when investing in property, and the location and your proximity to the property is just one of them. Investing interstate is not without its risks. But to be a successful property investor w

If you're looking for more success in life – be it in your property investing, wealth, or money management, today's episode of my Podcast is for you. I'm going to share 2 sessions with you – in the first one, I will discuss 21 reasons many people are terrible at managing money. And even if you've got your finances under control, I bet you'll learn something from the lessons I want to share. And then I'll be chatting with Brett Warren, national director of Metropole Property Strategist about something very interesting he found when he sat down with potential clients of Metropole. He realized that their homes often performed better than investment properties they owned. I'm going to ask him why. 21 reasons you're terrible at managing money Morgan Housel wrote a great column at Fool.com where he explains that people usually get better at things over time, but there's something about money that gets the better of us. It's one of the only areas in life we seem to get progressively dumber at. He then outlined 77 Reasons You're Awful at Managing Money. Here are 21 of my favourites: You suffer from the Dunning-Kruger effect; lacking enough basic financial knowledge to even realize that you're making mistakes. For every $1 raise you receive; your desires rise by $2 or more. You spend lots of money on material stuff to impress other people without realizing those other people couldn't care less about you. You have never been able to predict what the market will do next. You get upset when you hear on TV that the government is running a deficit. It doesn't bother you that you heard this on a TV you bought on a credit card in a home you purchased with a no-money-down mortgage. The single largest expense you'll pay in life is interest. You're thrilled that the credit card you're paying 22% interest on offers 1% cashback on all purchases. You work in a stressful job in order to make enough money to have a stress-free life. You see no irony in this. You're a pessimist in a world where far more people wake up in the morning trying to make things better than wake up thinking we're all doomed. You try to keep up with the Joneses without realizing the Joneses are buried in debt and can probably never retire. You associate all of your financial successes with skill and all of your financial failures with bad luck. Rather than admitting and learning from your mistakes, you ignore them, bury them, make excuses for them, and blame them on others. You say you'll be greedy when others are fearful, then seek the fatal position when the market falls 2%. You let confirmation bias take control of your mind by only seeking out information from sources that agree with your pre-existing beliefs. You think you're too young to start saving for retirement when every day that passes makes compound interest a little bit less effective. You're investing for the next 50 years but get stressed when the market has a bad day. You don't respect the idea that "do nothing" are two of the most powerful words in investing. You feel especially smart after last year's market rally without realizing that you had nothing to do with it. You seek advice from a doctor to manage your health, an accountant to do your taxes, a lawyer to manage your legal problems, a plumber to fix your plumbing, a contractor to build your house, a trainer to help you exercise, a dentist to fix your teeth, and a pilot to fly when you travel. Then, with no experience, you go about investing willy nilly, all by yourself. You think financial news is published because it has useful information you need to know. And here's two bonuses one for you: You forget that the single most valuable asset you have as an investor is time. A 20-year-old has an asset Warren Buffett couldn't dream about. You nodded along to all of these points without realizing I'm talking about you. Why your home may outperform your investments with Brett Warren My business partner Brett Warren wrote an interesting blog recently explaining what he found when he spoke with potential clients of Metropole who were existing homeowners and also owned one or two investment properties. He found that while often their homes had performed strongly growing significantly in value, yet in many cases, their investment properties have struggled and, in some cases, fallen behind. So, today I ask Brett why this happens so frequently. Brett Warren says that while people may keep fundamentals firmly in mind when looking for their homes, they often overlook them when it comes to investments. Take a look at some of the fundamentals that investors tend to overlook. Supply and demand Understanding the intrinsic land value The neighbourhood features If you wouldn't compromise on these factors when buying a home, you also shouldn't compromise when investing in a property. Links and Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Proper

What's ahead for our property markets in 2022? Even though the situation is improving, there will clearly be continuing issues with Covid 19 affecting our local economy in the new year. And the socio-political problems that plagued the world over the last few are unlikely to disappear. Yet most analysts and economists agree that our property markets should perform strongly in 2022. But the markets won't be the same – capital growth won't be as strong as we experienced last year, and we are likely to end up with a two-tier property market. So, what lessons can we take from 2021 to make you are a better investor in the new year? Today I plan to share 21 lessons from 2021 with you, in the hope of making 2022 a better year for you. Lessons from 2021 to carry into 2022 It's been an extraordinary year, hasn't it? Looking back to this time last year, we thought we had this Covid "thingy" licked didn't we, but look what then transpired. Nobody could have foreseen all that's happened, including the coronavirus, its economic fallout and the way our lives changed. But as we head into 2022, I can't help but reflect on what Australia as a country has accomplished and what I've achieved personally, what I've overcome, and the lessons I want to carry with me into the New Year. Expect the unexpected Every year an unexpected X factor comes out of the blue to undo the best laid plans – sometimes on the upside (like the miracle election result in mid-2019) and sometimes on the downside like Covid19 in 2020. But the biggest risk is what no one sees coming, because if no one sees it coming no one is prepared for it and if no one is prepared for it, it's damage will be amplified when it arrives. Focus on the long term The strong performance of both our property markets and our share market showed us to ignore the numerous pessimistic property predictions by the so-called "experts" - don't make 30-year investment decisions based on the last 30 minutes of news. It's the media's job to entertain you – not educate you Remember… it's the media's job to get eyeballs on the advertisers' content, rather than to educate you. And unfortunately, being overwhelmed with misinformation led many people to live in a state of fear and anxiety and caused some to make disastrous investment errors. Take economic forecasts with a grain of salt If you're reading something frightening in the business section, or hearing it on TV, or learning about it from your neighbor, it's almost certainly too late to act — because the information is already reflected in the market – in either the share price or property prices. Don't believe the Doomsayers Last year, in 2020 at the beginning of the pandemic, the doomsayers found their moment and told us how our property markets would crash – they were wrong of course. Don't let them stop you from achieving your financial dreams – the doomsayers are always wrong, at least in the long term. No one really knows what's going to happen to the property markets So as a real estate investor, while it's important to have mentors, make sure you're listening to somebody who has not only built their own substantial property portfolio but someone who has kept their wealth through a number of cycles. There is no such thing as the "Australian property market." Local factors have always driven property market performance. So, avoid paying attention to commentary that gives broad generalizations about the Australian property market or even the Melbourne, Sydney, or Brisbane property markets. Don't try and time the market Rather than timing your investment purchases (or sales), if you buy the right investment-grade assets, time in the market is much more important than timing the market. The crowd is usually wrong Market sentiment is a key driver of property cycles and one of the reasons why our markets overreact, overshooting the mark during booms and getting too depressed during slumps. Property Investment is a game of finance with some houses thrown in the middle Maybe you should consider locking in a portion of your interest rates at today's low rates. I'm not suggesting you try and time the interest-rate cycle, but I always lock in a portion of my loans on fixed interest rates to secure my cash flow. Invest for Capital Growth Capital growth should be the key driver for your investment decisions, rather than cash flow. There will always be reasons not to invest Where investors get into trouble is that rather than focusing on their long-term goals, they see these crises as a once-in-a-generation event that will alter the course of history, when in reality they are just the normal path of history. Property investment is risky in the short-term, but secure in the long term Those who stay in the game benefit from the power of compounding growth which builds wealth but takes time. Many people get into property investment to improve their cash flow position, but if they don't have good money habits to start with taking on more debt on

How has the pandemic re-shaped your life? It would be very unusual if you hadn't had some major upheavals over the last couple of years, but what's going to remain as a long-term trend, a legacy of the lockdowns, and what fads are soon going to be forgotten. I'm sure many of us would like to forget the last couple of years, but they will be pretty hard to forget. In fact, it's likely Covid will leave scars on some of us, how we do things what we feel comfortable with and how we want to live, but Covid has also brought with a couple of positive innovations, it has brought forward a number of trends which were probably going to happen anyway and these will improve our lives. In today's show, I want to discuss these because whether you are a property investor, a business owner, or a professional understanding these social trends post-Covid will be critical for your success. And who better to discuss them with than our regular guest, leading demographer Simon Kuestenmacher, so welcome to today's show. How has Covid changed social trends? As we move into a new world of what some will call Covid normal, what will we look back on as a short-term fad, and what will last forever. Which trends will last? Online shopping? Working from home? Where do we want to live and how do we want to live? That's what I'm going to ask leading demographer Simon Kuestenmacher, director of the Demographics Group because if we understand how the pandemic re-shaped our wish list, not just for housing and property, but for many things in life, it will make us better investors, business people, and entrepreneurs. Let's look at a number of social trends that will shape demand and the way we will be living moving forward. Work from home Before Covid, just 5% of workers worked from home. During lockdown, at-home workers approached 50%. It's likely that the trend of working from home will continue moving forward. If nothing else, employers and workers will work out hybrid arrangements – workers will be partially remote, partially in-person In the longer term, the proportion of the workforce working from home could settle at about the 10-15 percent mark. The future of the CBD There will be a rise of work near home workspaces Overall, through the next 2 or 3 years, the area will completely recover However, it won't happen immediately The importance of neighbourhood The 20-minute neighbourhood - The ability to work, live, and play all within 20 minutes' reach is the new gold standard desirable lifestyle. COVID created a more intense sense of community Home improvements The collective dwell time in the family home has been boosted by the work from home revolution pandemic. The greater the dwell time the greater the tendency to invest in the family home with new appliances, technology, furniture, furnishings. Millennials These are the children of the Baby Boomers born 1984-2002, now aged 19-37, and who over the next five to six years will push into their late 30s and early 40s These upgraders will trigger a surge in demand for family-friendly residential property in the suburbs. Boomers born 1946-1964 and who are now aged 62-75. They will reinvent this time (65-plus) in the life cycle as the most exciting time of all: kids off their hands, mortgage paid out, health still okay. The 2020s are their time to spend the kids' inheritance and to methodically tick off activities from their ever-expanding bucket list. VESPAs - Virus Escapees Seeking Provincial Australia Work from lifestyle regions Scootering out of capital cities in search of affordability and serenity in a lifestyle town. FIZOs You've heard of Fly-in Fly-out or FIFO workers? Well, how about Fly-In Zoom-Out or FIZO workers? Workers who are remote most of the time, but are required to work in person for at least a couple of events Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Subscribe to Simon's YouTube channel here Read Simon Kuesetenmacher's blogs on Property Update here. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: What's ahead? The post-Covid social trends that will stick, with Simon Kuestenmacher Some of our favourite quotes from the show: "They're upgraders now, they've upgraded homes rather than apartments, and that's going to create a huge demand for certain sorts of properties in the family-friendly residential suburbs." – Michael Yardney "Continuing on with the Vespa analogy, they're going to be scootering out of the capital cities and moving into the regional areas." – Michael Yardney "Those who succeed in life do not think they're going to fail, they know it." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listeni

According to Core Logic, over the last 12 months, their home value index has risen by 30% in Sydney, 26% for Brisbane, and almost 20% for Melbourne. There is no doubt that these levels of property price growth are unsustainable in the long term, so are we in a property bubble? Are our property markets going to crash? And if so when will this happen? That's what I'm going to discuss in today's podcast with independent financial advisor Stuart Wemyss, as we go back in history to see how much property values have fallen in the past – I think some of the stats that Stuart will share will surprise you. Are Our Property Markets Going to Crash? If So, When? The average household in a raft of suburbs around Australia will be pushed into mortgage stress if interest rates climb just 1%. Well…That was a headline doing the rounds not that long ago. At much the same time modelling by one of Australia's most publicized property pessimist suggested that a minimum mortgage rate hike combined with a higher buffer rate as required by the recent APRA edicts to the banks would send thousands of residential landlords into financial stress and could fuel house price falls by the end of next year. So, will higher inflation lead to higher interest rates that will tip the scales and spell the end of the current property boom? And more importantly, will it create a property market crash like a number of commentators are predicting? The problem is that some people know just enough to think they are right and not enough to realize they are wrong The reality is that property has always seemed relatively expensive. What is mortgage stress? There are various definitions of what mortgage stress is, but it's most commonly defined as a household spending more than 30% of their pre-tax income on their home loan repayments. Yet looking at mortgage defaults or mortgage arrears with our banks would suggest that very few Australian households are currently suffering mortgage stress, and many are well ahead in the mortgage payments. Let's look at what could cause a housing market crash There is no doubt that at some time in the future we will experience a cyclical property market correction, but there is no need to worry about a house price "collapse" like some property pessimists are suggesting. House prices "collapse" when people are forced to sell their homes and there is no one willing to buy them. A true collapse in house prices would require a significant external shock such as: Unemployment is high enough to trigger a waiver forced home sales, and that's not going to happen. Interest rates rise so high that they would cause a raft of homeowners to default on the mortgage. The Reserve Bank wants this about as much as it wants another strain of coronavirus. A credit squeeze – APRA is currently making it a little bit more difficult to borrow money, but they don't want to crash our property market either. A severe recession that would increase unemployment and cause homeowners to default – that's not on the cards. A severe oversupply of property – currently we have an undersupply of the right type of properties that most homeowners want. So, while a crash is not on the cards, a correction will occur one day and at that time some properties will hold the value better than others. Obviously, that's the type of property you should own. Australian property price bubble? According to Core Logic, the home value index has risen by 30% in Sydney over the 12 months to October 2021, 26% for Brisbane, and almost 20% for Melbourne. Whilst recent property price growth has been unsustainably high, it's more important to consider medium-term growth, especially considering negative returns in 2017-2019. Over the 5 years to June 2021, the median house price in Brisbane, Sydney, and Melbourne appreciated by between 4.7% p.a. and 6.9% p.a. (according to REIA), which is below the long-term average. Whilst some commentators have recently predicted that property prices will fall, it is interesting to note that medium-term returns (5 years) tend to be a good predictor of price falls. I picked the largest price falls since 1980 in Melbourne, Sydney, and Brisbane. Here's what I found: Median house prices in Sydney fell by almost 15% between 2017 and 2019. The 5 years prior to this period prices rose 13% p.a. In Melbourne, the median house price fell by 11% over 2011/2012. The 2 years prior to this period house prices rose by 24% p.a. Median house prices in Brisbane fell by almost 8% over 1986/1987. The 5 years prior to this period prices rose 11% p.a. The conclusion is that price growth must be above average for an extended period of time (more than 2 years) for there to be a risk of a correction. Property prices in Melbourne, Sydney, and Brisbane have merely made up for the poor growth rate since 2017. Today's property prices will seem cheap in 2031 The best way to reduce your risk of entering a seemingly "expensive" property market is to buy a property that has the

Australia's economy and our property markets don't operate in isolation, so I believe it's good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia's economy, but the world economy to help us understand what's ahead for us, and I do this once a month in these Big Picture Podcasts with Pete Wargent. Since this will be our last Big Picture podcast for the year Peter and I will give a short review of what happened over the last year and our thoughts on what's ahead for the world economy, Australia's economy and our property markets. Economic and property trends you must understand As I look back, 2021 the year seems to have gone quickly for me, even though I know for a lot of people it has been a slow and difficult year. It's been a great year for my business at Metropole where we help more people are ever secure their financial future through independent wealth and property advice and advocacy and its been the best year in my memory for the growth of my property portfolio, and I know for most people who owned property it's been a very good year also. Yet I recognize that some people have experienced tough times related to their health, to their business or financially. And I'm not saying that flippantly – in most cases this was totally out of your control and it just doesn't seem fair does it? So what's ahead for us? What will 2022 bring? That's one of the many topics I'm keen to discuss in this month's Big Picture with economic analyst Pete Wargent. Lockdowns have been removed in Australia However, Europe seems to be seeing a new wave of Coronavirus The UK's numbers of infection have been high, but hospitalization rates are going down The third set of vaccines is helping to reduce serious cases The economy hasn't performed as strongly as some had predicted the beginning of the year This is because of the Delta strain of coronavirus and lockdown is in Melbourne and Sydney However, analysts expect growth in the December quarter not only to overtake its pre-Delta peak but to keep going. The large war chests Australians have built from saving their cash will help drive the economy. Now that 80 percent of Australians aged over 16 are fully vaccinated and restrictions on activity have been significantly eased, the RBA sees our economy recovering rapidly. Their upgraded economic forecasts will see a buoyant environment in the lead up to the federal election we'll most likely be having in either March or May next year. The RBA said that, with the economy now opening up, the momentum evident before the Delta outbreak is expected to resume. Rising inflation isn't all bad Rising inflation will reduce the impact of ballooning government debt. At the same time, property investors will benefit from a higher range that usually comes along with higher inflation In the September quarter, our current account surplus hit a record $24bn, according to the official data from the ABS, up from the only slightly less spectacular $23bn in the June quarter The pandemic has shown that without students and migrants we face skills and general labor shortages across the nation If the scenario of 250,000 migrants by 2023 eventuates house prices could jump about 5 percent by 2023 and rents would lift about 7 percent. A number of the banks have updated their forecasts for the next few years They all agree our property markets are slowing down in terms of capital growth but will still perform strongly in 2022 They also all suggest property values will drop in 2023. It's been a surprise how strong the markets performed and APRA's sudden intervention It's also been surprising that there are unusually low rental vacancies It's been reported that widespread money laundering is contributing to Australia's inflated property prices Australia's weak anti-money laundering policy, flaws with the corporate registry, and the lack of a beneficial ownership register all contributed to the problem Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Join Michael's Property Update private Facebook group by clicking here Pete Wargent's new Podcast Shownotes plus more here: The Big Picture, economic and property trends you must understand - December 2021| With Pete Wargent Some of our favourite quotes from the show: "In general, the economies of most of the world are going to perform well next year, aren't they? So we're not operating in isolation." – Michael Yardney "You're a migrant, I'm a migrant, in fact, most Australians are, and if it's controlled, if it brings in skilled people who are going to pay taxes and buy goods, then that's actually good for the economy." – Michael Yardney "I'm not sure that a rise of 1% is going to be enough to put people into mortgage stress, especially if it's done slowly, over a period of time." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover

As they say - every cloud has a silver lining. So, what can we take out of the last couple of years of Covid to make our futures better? Well, in my last podcast I was chatting with Ken Raiss, Australia's leading property tax strategist and director of the Metropole Wealth Advisory and we started to share 20 insights we've learned from Covid-19, in the hope that if you learn from these lessons you could be a better property investor, business person and entrepreneur and that could be your silver lining. There were so many things to discuss we didn't get through the list, so in today show we'll continue with our thoughts Whether you are a beginning property investor or experienced professional, I'm sure there'll be something in my chat with Ken that will be of benefit to you. More Property Lessons Don't try and time the market You can't time the market and investment grade properties gives more options even in periods of downturn The importance of investing in resilient large cities. Look how well Melbourne survived over 200 days of lockdown and six lockdowns the fact that Melbourne has a range of different industries is proof of the resilience of investing in large cities The importance of neighbourhood One thing I know many of our Melbourne friends have been missing is their "third place". If our first place is home and our second place is work or the office, it has been the ability to go to a third-place that was taken away. It may be a favorite café, a gym or a place of worship, and even local shops and pubs. So, all these features combined will be a major requirement and will create huge demand moving forward. These are all features of the 20-minute neighborhood, that will be built around convenience. The importance of owning the right assets A-grade asset held their own during the downturn of 2020 Maintained value and or quickly clawed back any losses in both value and rents. Improved exit strategies and were easier to rent Moving forward A-grade homes and investment-grade properties will continue to outperform. Houses outperformed apartments The gap between house prices and unit prices has never been so high Family-friendly apartments in medium and low-density complexes in lifestyle locations may make good investments for those on limited budgets This cycle was led by home buyers Millennials are moving to the family formation stage of their lives and buying houses (moving out of apartments) many taking out the various grants - unfortunately many bought in c and d grade locations and won't get the benefit of capital growth many of these didn't have savings and good money management. Disappearing middle class Look at the demographics of where you invest - look for affluence score of neighborhood After this boom, we'll enter a 2-speed property market. Some have not been affected by coronavirus and others have not The neighbourhood is important - avoid dormitory suburbs don't be left with a secondary property at the end of this cycle - maybe it's time to swap Immigration is not as important as we thought it may be Despite our borders being closed property value to keep rising, and this was mainly because of upgrade is taking advantage of low-interest rates and Covid changing our requirements for accommodation. This also suggests that in general and markets are slightly undersupplied and when the borders open will be significantly undersupplied and this will underpin property price growth The social transformation of work from home Again reinforces the importance of neighbourhood Need bigger accommodation and a zoom room The benefits of maintaining good health both physically and mentally and not being afraid to reach out Building costs will rise Understand your real strengths particularly in business and learn to be flexible to leverage these skills The power of being a good negotiator. Wage growth, business supply agreements, finding the low hanging fruit ie renegotiated interest rates on loans Links and Resources: Michael Yardney Buy Michael's latest book – Negotiate Influence Persuade Ken Raiss- Director Metropole Wealth Advisory Get Ken Raiss to build you a Strategic Wealth Plan Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Even more property lessons we learned this year from Covid, with Ken Raiss Some of our favourite quotes from the show: "If you want to become wealthy, you really have to use the power of compounding and leverage." –Michael Yardney "There's a whole range of new gurus – that happens every time the property cycle moves on." – Michael Yardney "Unless you grow out to where it is, you end going back to where you are." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you t

The naysayers and the property pessimist were proven wrong – again! Despite prolonged lockdowns, no immigration, no international students, the threat of high unemployment, and all the pessimistic predictions for our housing markets, the value of many houses around Australia grew by more than 20% in the last year alone. Obviously, these are unprecedented times, and we can't blame some of those who made predictions early in the pandemic for getting it so wrong, but now that it seems that we are over the other side – across the bridge that Scott Morrison said he would build for us - what property lessons can we learn from Covid to make it better property investors. That's the topic of my chat today with Ken Raiss, Australia's leading property tax strategist and director of Metropole Wealth Advisory as we share 20 insights we've learned from Covid-19 Top property lessons we learned from Covid-19 The last two years have been among the most tumultuous in living memory, and yet Australia looks set to emerge better placed than almost any other country and our property markets have surprised almost every commentator on the upside. So, what can we learn from this? The property market is too big to fail - the government and the banks have a vested interest in the property market, so they stepped in when things got tough The supply of money is important in fuelling our property markets The wealth effect is important for consumer confidence and the government understands this - those who hold assets have benefited from government stimulus - you want to be in the market The government has realized that it can spend its way out of a recession – make people feel wealthy and they will spend money in the wheels of industry go around Those in the knowledge-based economy, who could work from anywhere because they sold what was in their head rather than make money by using their hands, could work anywhere and more and will continue to do so. You can't rely on one income stream Cashflow buffers are important – Having plenty of cash savings provides a safety net in case your income unexpectedly falls, or a large expense crops up. Financial security gives you a 'sleep at night' factor – Building a nest egg outside of the home and compulsory super provides greater financial strength to weather any storms. You can expect the markets to correct Don't try and time the market –You can't time the market and investment grade properties gives more options even in periods of downturn Links and Resources: Ken Raiss- Director Metropole Wealth Advisory Get Ken Raiss to build you a Strategic Wealth Plan Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: 20 property and investment lessons we've learned from Covid this year, with Ken Raiss Some of our favorite quotes from the show: "For most of the investment properties, and for most people's homes, the bank owns as much as the owner does." – Michael Yardney "I think one of the lessons here is get a good education because it's going to see you through life." –Michael Yardney "Of course, in an ideal world, you'd like to be able to forecast, you want to know what's ahead. But we can't, there are just too many moving parts." – Michael Yardney Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Do you want to learn some investment lessons from somebody who's been in the property game for almost 50 years? You'd hope to get some great insights and perspectives, wouldn't you? Well, that's what you going to get in today's show, but it's a little bit different from normal. As you know I normally interview guests or have my little chats with you in this podcast, but I was recently interviewed by Pete Wargent, a regular on this show, for his new podcast. And you won't be surprised in learning Peter asked me some astute questions and got me to share some things I don't think I have discussed in public before, including some war stories. Peter is a great interviewer and I'm sure his audience got benefit from our chat, so I asked Pete for permission to run this particular episode of his show - Pete Wargent's Property Pod - as part of Michael Yardney Podcast - so welcome to today's show and enjoy. Topics Pete and I Discuss: Michael's childhood and family background Michael's family came to Australia from Israel when he was three His parents got their first home when he was eight How the idea of property investment came to Michael Michael was impressed by the real estate agents when his parents moved house He thought that he wanted to do that as well He also realized that his friends' parents were wealthy compared to his and that they invested in real estate How Michael got the idea to put his experience and ideas into a book Why Michael thinks we self-sabotage We feel we deserve a particular level of wealth (wealth thermostat) and sabotage ourselves when we rise above it The first house Michael bought and the price he paid How Michael would advise someone thinking of getting into the market today Get into the property market sooner rather than later Learn the importance of delayed gratification Increase financial literacy Don't worry so much War stories from getting involved in commercial developments What Michael mainly focuses on investing in now What Michael's endgame is No longer investing for himself Instead, he's setting up for intergenerational wealth Charitable giving is also important What Michael thinks will happen to the property market next year and over the next 10 years What Michael thinks of the upcoming election Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Subscribe to Pete Wargent's Property Podcast on Apple here or Spotify here Shownotes plus more here: Lessons from a 50-year property veteran with Pete Wargent Some of our favourite quotes from the show: "I saw things at home and I saw the way other people did things, and I thought no, I actually want to do it like my friends' parents were doing it." – Michael Yardney "I'd suggest that the sooner you get into the property market, the better." – Michael Yardney "I bought my first property in 1971 or 1972 – and now after 50 years, I finally got it right." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Success is nothing more than a few simple disciplines practiced every day, while failure is simply a few errors in judgment, repeated every day. If you think about it, it's the accumulative weight of our disciplines and our judgments that leads us to either fortune or failure. So how can you become more successful in life, investing, or in your business or profession and have a lower chance of failure? One of the best ways I know is to study successful people, or even better is to study failures, and then have a mentor by your side to make sure you keep doing the right thing. In today's show Mark Creedon, founder of Business Accelerator Mastermind and one of my coaches and mentors, and I are going to share with you a list of things we believe you need to understand about investing, the economy, and business. This is really a follow-on from the last chat we had together a few weeks ago where we discussed 24 things we felt you should know and these were based on the musings of Morgan Housell, my favorite finance writer. Judging by the number of downloads that podcast got it was very popular and I'm sure you'll gain some insights from my chat with Mark today whether you're a beginning or an experienced investor or a businessperson. Economic and Business Success Lessons Investment banker Dresdner Kleinwort looked at analysts' predictions of interest rates and compared that with what interest rates actually did in hindsight. It found an almost perfect lag. "Analysts are terribly good at telling us what has just happened but of little use in telling us what is going to happen in the future," the banker said. It's common to confuse the rear-view mirror for the windshield. Study successful investors, and you'll notice a common denominator: they are Masters of Psychology. They can't control the market, but they have complete control over the grey matter between their ears. Try to learn as many investing mistakes as possible vicariously through others. Other people have made every mistake in the book. You can learn more from studying the investing failures than the investing greats. "Investor Dean Williams once wrote, "Confidence in a forecast rises with the amount of information that goes into it. But the accuracy of the forecast stays the same." No one on the Forbes 400 list of richest Americans can be described as a "perma-bear." A natural sense of optimism is not only healthy but vital. How long you stay invested for will likely be the single most important factor determining how well you do at investing. When you think you have a great idea, go out of your way to talk with someone who disagrees with it. At worst, you continue to disagree with them. More often, you'll gain valuable perspective. Fight confirmation bias like the plague. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Morgan Housell's article mentioned in the show: 122 Things Everyone Should Know About Investing and the Economy by Morgan Housel Shownotes plus more here: 7 more investing, economic, and business lessons you must understand with Mark Creedon Some of our favourite quotes from the show: "It's common to confuse the rear-vision mirror with the windshield." – Michael Yardney "Rational people don't act rationally when it comes to money or investing." – Michael Yardney "I think nature has made most of us pessimists." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

One way of getting more finance as a property investor is to get a higher valuation on your properties. So how do you go about this? How does a valuer evaluate your property – what do they like to see, what adds value, and what makes them nervous? These are some of the questions I'm going to ask my guest today, Belinda Botzolis, a valuer with one of the leading national firms of valuers, but as you'll soon find out, Belinda is far from a conventional valuer. And even if you're not about to get a valuation or revaluation, I'm sure you'll find the property tips Belinda has to offer of real value and there's a little bombshell Belinda will leave us with at the end of our chat – but you'll have to wait till the end to hear that. I'll also share my popular mindset message with you at the end of today's show. Valuation with Belinda Botzolis In my chat with Belinda Botzolis, a valuer, we get a sneak peek behind the curtains of what they do, how they value property, and what you can do to improve your valuation. Topics Belinda and I discuss: How Belinda decided to become a valuer After turning to a page in her university's guidebook that explained the Bachelor of Business Property Economics degree and speaking to a family friend who was a valuer, Belinda knew what she wanted to do. When Belinda bought her first property She was 22 She chose an investment property that she and her husband would eventually like to live in They could have borrowed more, but knew the home wasn't a forever home, just a first investment, so sensibly did not overextend. Belinda's advice for those new to the market: It will feel like it's never going to happen, but it will Have a plan b, a plan c, and a plan d What people ask Belinda when they find out she's a valuer "Why do you undervalue my property?" People don't realize that property valuations are based on what the property would be worth if it went on auction today. The risks that valuers look at The unusual properties that Belinda has valued Hoarder homes are most likely to strike Belinda as unusual What does and doesn't add value to a home Getting the kitchen and bathroom right matters most Adding a pool might add value, but not enough to give you a return on the investment Whether aspect and orientation matter The north aspect is key Main and secondary roads are risk-rated. Valuers don't like them. Off the plan properties and house and land packages in the outer suburbs can get knocked back by valuers Links and Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Discover how valuers assess your property so you can maximize your borrowing capacity, with Belinda Botzolis Some of our favourite quotes from the show: "Just like there's never a perfect property, there's never a perfect time to invest, either." – Michael Yardney "Giving up too easily is a bad habit you should avoid." – Michael Yardney "It's important to ditch unhealthy lifestyle habits." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What's ahead for our property markets? If you're like most property investors, you'd probably give your second garage to know what's in store now that our markets seem to have moved to the next stage of the property cycle. Sure, our markets are still booming, but there seem to be more headwinds ahead. In light of that, in today's show, I'm going to answer the question: where should you buy your next investment property? And even if you're not planning to buy soon, I think this episode will be informative for anyone who's interested in property. I'll also share my mindset message about things I would have liked to know at the beginning of my investment journey. Where would you invest in property in Australia today? Where, what location, and what would you buy, and why? And by the way…is real estate still a good investment in Australia? These questions were recently posed to me by journalists, and I can understand why – they are common questions investors are asking today and they make great headlines for articles. Everyone would like to know how to find the best property investment locations or Australia's best growth suburbs. However, statistics show that around 50% of all property investors sell up in the first five years, and of those that stay in the market, 92% never get past their first or second investment property. So, if you want to outperform the average investor, if you want to develop financial freedom through property investing, then don't start by selecting a location, or looking for that ideal property. Things must be done in the right order – and selecting the property comes right at the end of the process. My first recommendation to anyone asking where to invest is to sit with an independent property strategist to formulate their plan. The benefits of creating a plan with an expert include: It will help you define financial and investment goals. You'll discover whether those goals are realistic. You'll find out what you've done right and what you've done wrong along your financial journey. You'll be able to measure your progress towards your goals. Your plan will help you identify risks. Understand the three important parts of your investment equation: Your budget Location The right property Be aware that investors usually need to compromise on at least one of the above. So, what about that journalist's question- "Is real estate still a good investment? While most property markets around Australia have performed strongly so far this cycle (other than the inner city of high-rise apartment market), it's important to realize that moving forward we are likely to have a 2-tier property market. In other words, not all property markets will continue growing strongly moving forward. Properties located in the inner and middle-ring suburbs, particularly in gentrifying locations, will outperform cheaper properties in the outer suburbs. While the outer suburban and more affordable end of the markets have performed strongly so far, affordability is now becoming an issue as the locals have had minimum little wages growth of the time when property prices have boomed. As their priorities change, some buyers will be willing to pay a little more for properties with "pandemic appeal" and a little more space and security, but it won't be just the property itself that will need to meet these newly evolved needs – a livable location will play a big part too. Considering locations I would not be investing in regional Australia or in the smaller capital cities. But more than that I look for an affluent demographic who will be able to and prepared to pay more to buy or rent in these suburbs. I don't like to fight the big trends. Why fight with the gorilla? Other important drivers of capital growth include supply and demand, infrastructure, livability, and amenity. I look for suburbs where wages (and therefore disposable income) are increasing above average. These will either be: Discretionary Locations These are the most expensive locations in our capital cities – the "established money" locations where most of the residents have lived for a long time and where many residents have paid off their home loans years ago. Aspirational Locations These are the upper-middle-class areas and gentrifying locations of our big cities. On the other hand, I would avoid investing in the more affordable locations as this end of the property market underperforms over the long term with regards to capital growth and rental growth because many of the owners are young families who have stretched themselves to their financial limits and are often only a week or two weeks away from broke. People will pay a premium to be in the right neighborhood What about choosing a property in your preferred location? In general, there are 3 types of property. A grade properties are the type of assets you want to own, and the type of properties where great tenants want to live, not because they need to, but because they want to and are prepared to pay e

Are you wondering what's ahead in property for 2022? Maybe you'd like to know what other Australian property investors plan to do? Well, that's exactly what we discuss in today's show as we unpack the results of this year's Property Investor Sentiment Survey. You'll hear what 1,700 Australians feel about our current real estate markets and what they plan to do. And you'll also hear what Covid did to their property plans and how if at all it changed their strategy You see…they took part in this year's Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Yahoo Finance Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time. And as usual, I'll share a mindset message with you because if you can change your thinking it could change your life. What you need to know about this year's Property Investor Sentiment Survey While we may all be in the same ocean, we are not in the same boat, and while some Australians have lost their jobs or are working shorter hours and have suffered financially, others are doing the same as before the pandemic or better. Sure 2021 will be a year many of us would rather forget, even though very few of us ever will. However, for homeowners and property investors it will be a year when the value of their properties will have increased by up to 20% - in some cases, they will earn more from property capital growth than they will from their day job. Investors are more cautious this year A surprising result this year was that while only 12.4% of the respondents said their household finances had worsened because of the pandemic. In other words, most Australian households have noticed no real change or an improvement to their family finances, only 55.2% believe now is a good time to invest in residential real estate. However, 24.7% of respondents plan to buy a new home in 2022 (up a little from 24% last year and 20% the year before.) How did the pandemic affect your household finances 57% of respondents said there was no real change to the household finances, while 28% said their household finances had improved. This is no real surprise as, despite Covid, lockdowns, and a recession last year, recent Australian Bureau of Statistics figures show the average Australian is getting richer. We also asked some Covid-specific questions in this year's survey. Some of these questions include: Are you considering moving to live in a different location because of Covid 19? Most are not, though they may have been considering it before things began to settle down Is this a good time to invest in property? People are less confident this year and less likely to want to invest than they were last year. if the Coronavirus pandemic had changed their attitude or approach to property investing? In general, attitudes remained about the same as last year Has the pandemic impacted your immediate investment plans in the next 12 months? Most are sticking to their original plans Have you requested a mortgage repayment holiday from your lenders? Have you received a request for a rental reduction or holiday because of COVID-19 from your tenants? Has the pandemic changed your work situation? How has the pandemic affected your household finances? Do you think now is a good time to fix interest rates? Whose advice do you seek (or plan to seek) for property investment advice? About a third of the respondents planned to seek advice from a property strategist or advisor The bottom line: It's clear that property investor confidence remains strong and those who can afford to are planning to take advantage of the investment opportunities are housing market is currently offering by buying another investment property or new home if finances allow. Our survey shows that Australian property investors focus on long-term capital growth, rather than cash flow and many are looking for a property that has the potential to add value, rather than waiting for the market to do the heavy lifting. While investors will still face a number of hurdles with the economic challenges facing Australia, few have changed their long-term investment plans due to COVID-19. Links and Resources: Michael Yardney Metropole Property Strategists Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Click here to read the full survey results. Shownotes plus more here: Here's what 1,700 investors think is going to happen to property in 2022, with Brett Warren Some of our favourite quotes from the show: "No one's born talented at making excuses." – Michael Yardney "Many Aussies are in at least as good a financial situation or better compared to when the pandemic began." – Michael Yardney "In general, people didn't think it was as good a time to invest as last year." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you

A number of years ago I started making a list of all the things one needed to know about investing. I wanted to capture the favorite quotes I have read and the lessons I have learned. This ended up being a more ambitious project than I envisaged, and it remains an ongoing one. So, in today's show, Mark Creedon and I are going to share with you a list of 24 things we believe you need to understand about investing, the economy, and business, and this list is based on the musings of Morgan Housell, my favorite finance writer, and I'm sure you'll gain some insights from my chat with Mark today whether you're a beginning or an experienced investor or a businessperson. 24 Lessons About Investing and the Economy Over the years one of my favorite columnists whose articles I read regularly is Morgan Housell who used to write for Motley Fool and now writes for Collaborative Fun He writes a lot about behavioral finance and why supposedly rational people act irrationally when it comes to money, finance, and business. A number of years ago he wrote a great column where he detailed 122 things everyone should know about investing and the economy and there were some great lessons to take away from that article. I've pulled a number of these out today to discuss with my business partner Mark Creedon founder of Business Accelerator Mastermind. Saying "I'll be greedy when others are fearful" is easier than actually doing it. When most people say they want to be a millionaire, what they really mean is "I want to spend $1 million," which is literally the opposite of being a millionaire. Daniel Kahneman's book Thinking Fast and Slow begins, "The premise of this book is that it is easier to recognize other people's mistakes than your own." This should be every market commentator's motto. As Erik Falkenstein says: "In expert tennis, 80% of the points are won, while in amateur tennis, 80% are lost. The same is true for wrestling, chess, and investing: Beginners should focus on avoiding mistakes, experts on making great moves." There is a difference between, "He predicted the crash of 2008," and "He predicted crashes, one of which happened to occur in 2008." It's important to know the difference when praising investors. Wealth is relative. As comedian Chris Rock said, "If Bill Gates woke up with Oprah's money he'd jump out the window." The Financial Times wrote, "In 2008 the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong, and Oscar Pistorius." The same falls from grace happen in investing. Choose your role models carefully. Investor Nick Murray once said, "Timing the market is a fool's game, whereas time in the market is your greatest natural advantage." Remember this the next time you're compelled to cash out.. Jason Zweig writes, "The advice that sounds the best in the short run is always the most dangerous in the long run." Billionaire investor Ray Dalio once said, "The more you think you know, the more closed-minded you'll be." Repeat this line to yourself the next time you're certain of something. John Reed once wrote, "When you first start to study a field, it seems like you have to memorize a zillion things. You don't. What you need is to identify the core principles — generally three to twelve of them — that govern the field. The millions of things you thought you had to memorize are simply various combinations of the core principles." Keep that in mind when getting frustrated over complicated financial formulas. James Grant says, "Successful investing is about having people agree with you … later." Scott Adams writes, "A person with a flexible schedule and average resources will be happier than a rich person who has everything except a flexible schedule. Step one in your search for happiness is to continually work toward having control of your schedule." Investors want to believe in someone. Forecasters want to earn a living. One of those groups is going to be disappointed. I think you know which. As the saying goes, "Save a little bit of money each month, and at the end of the year you'll be surprised at how little you still have." John Maynard Keynes once wrote, "It is safer to be a speculator than an investor in the sense that a speculator is one who runs risks of which he is aware, and an investor is one who runs risks of which he is unaware." Our memories of financial history seem to extend about a decade back. "Time heals all wounds," the saying goes. It also erases many important lessons. You are under no obligation to read or watch financial news. If you do, you are under no obligation to take any of it seriously. Most economic news that we think is important doesn't matter in the long run. Derek Thompson of The Atlantic once wrote, "I've written hundreds of articles about the economy in the last two years. But I think I can reduce those thousands of words to one sentence. Things got better, slowly." The "evidence is unequivocal," Daniel Kahneman writes, "there's a great deal mo

When you're on the hunt for a new property, there are so many things to consider – location, amenities, capital growth potential and if it's your home you may be wondering is there room for a zoom room or a man cave? So, what are property buyers looking for when they search sites like domain.com.au? That's what I'm going to be chatting today about with Dr. Nicola Powell, the Senior Research Analyst at Domain. We will also be discussing other buyer trends that Nicola has uncovered in her research including what buyers are looking for in their neighbourhood, the move to regional Australia, and locations that have significantly outperformed household income. This is the type of information that will be valuable for you with your beginning or an experienced property investor, so welcome to today's show. What Nicola's Research Uncovered How will the pandemic shape consumer behaviour in the future? I think we will be looking for different things in our homes, in our real estate, and in our neighbourhood, but to better understand what people are searching for when looking for their next home I'm looking forward to my chat with Dr. Nicola Powell, Senior Research Analyst for Domain. Nicola is the leading force behind Domain's data reports that keep the Australian public up to date on what's happening in the market. She is a well-known property expert, featuring regularly on broadcast and in print media, as well as Domain's media channels. Buyer trends we discuss 2021 was the busiest first half of a calendar year on record with sales soaring above the decade average by 28% across the combined capitals and 60% in regional Australia. The Domain Buyer Demand Index for combined capitals reached a peak in March, highlighting the strong buyer competition seen earlier in the year. The peak in buyer demand occurred at different times across the capitals. Sydney and Melbourne reached a peak in buyer demand sooner than the other cities. Buyer demand in Canberra and Darwin remains higher than the other cities, reflecting the underlying demand that remains. While current demand across the combined capitals is 17% below the March peak, it has been elevated over winter. There is a strong correlation between the Domain BDI and new "for sale" listings. In Sydney, affordability has become a key restraint as buyer demand is now on par for houses and units following five months of heightened demand for houses. In a post-covid world, we've seen our suburbs become activated. The bigger the house, the greater the price growth. House prices in some of Australia's more popular school catchment areas have soared by as much as 46% over the past 12 months. Parents are paying a premium for homes in locations that make their children eligible for enrolment in high-performing or popular government schools The data suggests certain school zone boundaries can have a significantly positive effect on house prices. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Dr. Nicola Powell – Chief of Research and Economics at Domain Domain Group's 2021 School Zones Report Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Identifying changing property buyer trends, with Dr. Nicola Powell Some of our favourite quotes from the show: "The buyer demand peaked in March, which is interestingly when capital growth peaked." – Michael Yardney "I think I've noticed that more of us are looking back to the way previous generations lived." – Michael Yardney "It's been a cycle of property upgraders." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

It's often said there are two things that are guaranteed in life – death and taxes. While taking care of your physical and mental health can lead to a longer, healthier life and stave of the death part, what can you do to legally minimize your tax? Since tax can be one of your biggest expenses as a property investor, in today's podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you. Before we get started let me give you a quick disclaimer… cheating or doing dodgy things to minimise your tax is wrong and illegal – and never worth it. Remember, when you dodge a tax return, the taxpayer takes all the risk. If you get audited, you will be liable for the interest and penalties, not your accountant. And of course, after my chat with Stuart, I'll share my popular mindset message. Building a substantial property portfolio may be simple, but it's not easy. And that's not a play on words. It's simple if you follow the systems and frameworks other successful investors have, but it's not easy because it requires money management skills, delayed gratification, discipline, resilience, and an understanding of finance, tax and the law. I guess when I put it that way it's not surprising that 92% of investors never get past their first or second property. And of course, property investment is a team sport – you need to get a good team around you including a property survey accountant, a proficient finance broker and a property strategist. In your journey as a property has a property investor, after your interest payments to text will probably be the most expensive outgoing in your property investment business and if you get it wrong it could end up being the most expensive cost. The three tax phases in a property's life Initial negative gearing phase. Income tax benefits. Land tax is often not material. Neutral phase. Property starts to produce a taxable income. Tax liability phase. After holding a property for 20 years, you should have heaps of equity in it, and it has helped you build a lot of wealth. However, a consequence of this is that (1) income tax liabilities start to become material, (2) land tax can also be quite costly Some income tax considerations To maximize negative gearing often requires putting property in the highest income earner's name. Minimize income tax later – having all property in one spouse's name could increase tax consequences. You need to think about your tax position in retirement. Land tax considerations Consider geographical diversification In VIC, land tax-free threshold hasn't changed since 2009 ($250k). Don't own property jointly i.e. one in each spouse's name is better. Use separate trusts. In NSW, avoid using a trust. Use personal name or company. QLD, similar to VIC. A personal name is cheaper than a trust. If you want to use a trust, use separate trusts. Capital gains tax considerations Sell when your taxable income is close to nil e.g. in retirement The goal is to spread the gain across as many taxpayers as possible to take advantage of marginal rates. E.g. $1 taxable gain: In one person's name = $440k of tax Distributed to 4 adults = $352k ($88k saving i.e. 20%) SMSF will pay zero CGT when in the pension phase. Finding a tax advisor We tend to think deeply about our own challenges and circumstances, so with that in mind, it's important that you use an accountant that invests in property themselves. A referral is the best way to find good advisors. Find a successful property investor and ask who they use. In business, you quickly learn that professional advice always pays for itself. Sometimes we are conditioned to reduce expenditure wherever possible. Not with tax. You want your tax advisor to spend time thinking about your situation, not feel pressured to churn the work out quickly because the margins are thin. One good financial decision will have positive consequences. But five good decisions in a row will be life-changing. It will create a lot more than five times the positive outcomes than one good decision will. That's because good decisions are a compounding asset. Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: What every property investor needs to know about legally minimizing their tax with Stuart Wemyss Some of our favourite quotes from the show: "I don't mind paying a fair share of tax, so we're not talking about illegally doing the wrong thing and getting into trouble, but we don't want to pay more than our fair share of tax." – Michael Yardney "You've got to be prepared to pay for advice." – Michael Yardney "The most expensive advice you can get is wrong advice, bad advice." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me bec

Since Australia's economy and our property markets don't operate in isolation, I regularly have a look at the big picture, the macroeconomic factors affecting not just Australia's economy, but the world economy to help us understand what's ahead for us, and I do this in these Big Picture Podcasts with Pete Wargent. While regular listeners know Pete well, if you're new to this podcast, firstly welcome, because I see there are thousands of new listeners every month, but the reason I'm keen to discuss these matters with Pete is not because of his academic credentials as a Chartered Accountant, Chartered Secretary or because he has a Financial Planning Diploma. But I enjoy these chats because of the credible perspective Pete brings on what's happening around the world. Since our chat last month Australia's circumstances have rapidly evolved, and we've got a lot to discuss. Listen in as we discuss the big picture and then I'll share my mindset message. The Big Picture With Covid related restrictions being lifted, life is getting back to a more Covid normal, and the pent-up demand from the last couple of months should ensure our property markets continue to perform strongly moving forward. Recently Westpac upgraded its forecast for Australian dwelling prices again. They are now expecting property prices to rise 22% for the full calendar year 2021 (up from its previous forecast of 18%) and they have also lifted their outlook for next year from 5% to 8%. But how is APRA's intervention going to interfere with this? And how are all the world economic challenges including the financial problems of China's big property developer Evergrande going to affect us here in Australia There's lots to discuss this month so I'm looking forward to my regular Big Picture podcast with economic analyst Pete Wargent, a lifelong student of and commentator on our economy – hello Pete. Topics Pete and I Discuss Today: What to look forward to on the other side of lockdowns As Sydney and Melbourne open up, they should see strong boosts to their economies The IMF says that the global economic recovery is continuing, even as the pandemic resurges. Vaccine access and early policy support are the principal drivers of the gaps. The global economy is projected to grow 5.9 percent in 2021 and 4.9 percent in 2022 Chinese property developer Evergrande is in financial trouble The fallout from that looks like the Chinese government is attacking its mega-corporations and has in the process thrown all international bond debt holders under the bus. Household savings are expected to hit at least $200 billion this year, which boosts the economy The economy is also boosted by a lot of construction projects 281,000 Australians lost their jobs because of Delta, but people are starting to gear up for the reopening of their industries The combined value of all residential real estate in Australia is now over $9 trillion, up from $8 trillion in April Regulators are aiming to gently apply the brakes to the housing market, rather than slam them on. To invest in property, it's smart to continue to look for areas that have always performed, rather than the new hotspot. Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: PodcastBonus.com.au Join Michael's Property Update private Facebook group by clicking here Pete Wargent's new Podcast Shownotes plus more here: The Big Picture – economic & property trends you must understand – November 2021 with Pete Wargent Some of our favourite quotes from the show: "While people think China is a communist country, it really isn't when you travel there and see how many private enterprises there are." – Michael Yardney "Unlike previous booms, this one is being driven mainly by owner-occupiers, not investors." – Michael Yardney "Wasn't that long ago, everyone was predicting unemployment in double-digit figures, and property values dropping 10, 15, 20 percent." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

What would Warren Buffett say about how I approach my property investing? And why do I even care? Well… Buffett who is 90 years old is consistently ranked amongst the world's richest people, is arguably the most successful investor of the 20th century and has an estimated net worth of $107 Billion. This means, he's earned (on average) over $11 million each and every year of his life, which is thousands of times more than the average worker in Australia earns. Anyway… I think he'd be impressed with how I invest because there are some similarities in our investment philosophies. So in today's show, I'd like to look at some of Buffett's investment principles and see how we can apply them to our property investing. How does Warren Buffet Invest? Warren Buffett is arguably the greatest investor of all time. So today's I'd like to look at some of his investment principles and see how we can apply them to our property investing. Adhere to a proven strategy In my mind, you need to follow a strategy that has always worked, rather than one that works now. Invest counter-cyclically Buffett has advised: "We attempt to be fearful when others are greedy and to be greedy only when others are fearful." This is also the investment strategy of many successful property investors and has proven to be a winning formula for many who invested in property. Sometimes it's best to do nothing A great quote from Warren Buffett is… "The trick is, when there is nothing to do - do nothing." There are stages in the property cycle and times in your investment journey when it is best to sit back and wait for the right opportunities. Specialize - don't diversify Successful investors specialize. They become an expert in one area or niche and reproduce the same thing over and over again getting great results. Invest for value You make your money when you buy your property, but not by buying a bargain. Instead, you lock in your profits by buying the right property. Invest for the long term Those who have created wealth out of property took a long-term view. This doesn't mean buy and forget - you should regularly review your property portfolio. Don't invest in anything you don't understand Warren Buffett never invests in anything he doesn't understand – nor should you. Manage your risks Smart investors have financial buffers in their offset accounts or lines of credit to not only cover their negative gearing shortfall but to see them through the downtimes of the property cycle. What would Warren Buffett say about how I approach property investing? I think he'd be impressed with how I invest because there are some similarities in our investment philosophies. Clearly, I'm not in Warren Buffett's league as an investor and Buffett much prefers investing in companies than buying real estate. And of course, he really wouldn't bother himself with how I do things, so all this is hypothetical. Having said that, I've grown a very substantial property portfolio over the last almost 50 years of investing that has given me financial freedom and choices in life. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a range of my ebooks here: www.PodcastBonus.com.au Shownotes plus more here: Why not invest like Warren Buffett? Some of our favourite quotes from the show: "You can't just go buy any property and hope it's an investment-grade property." – Michael Yardney "It's much harder to diversify when properties are so expensive." – Michael Yardney "Abundance of supply is the enemy of capital growth." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you want to become a more successful negotiator not only in property but in many areas of your life, you'll enjoy today's podcast which is the second part of a two-part series on how to win at auctions. Today I'm going to discuss the psychological tricks agents and auctioneers use to get the last dollar out of your pocket, in the hope that if you understand these techniques, you'll be a better negotiator not only at auctions but in all real estate transactions. After you've attended several auctions, you'll realize that a lot of the theatre and pressure is intentionally manufactured to get results. A good auctioneer can create an atmosphere of excitement and nervous competition as well as using some sneaky techniques I'm about to uncover for you that encourage businesses to pay a little bit more than they might have initially intended. To be successful, you must be aware of the little tricks that agents will use on you, and even if you're not planning to buy a property at auction you'll find that most real estate agents, who are trained negotiators, will use many of the psychological principles I'm going to share with you in all property negotiations. And as I show you how to spot these practices and how you can handle them, you'll find the lessons you learn will be helpful in negotiations in all areas of your life. In fact, my discussion with you today comes out of a chapter of my top-selling book Negotiate Influence Persuade. Auction psychology tricks: Social proof – This shows potential buyers that many other people are also interested in the property. We feel validated when we can see that others want the same things that we want. Scarcity – We value things that are (or seem to be) scarce. Auctioneers will use tactics to emphasize or manufacture scarcity and create FOMO. Reciprocity – This is just giving your customers something before you ask for anything from them. We tend to want to return good deeds. Therefore, auctioneers might give away things like free coffee or treats, hoping your urger to reciprocate later will result in a sale. Anchoring – We tend to rely too heavily on an initial piece of information. We selectively filter by the first impression. So, the first number dropped can be hard to shake and you may anchor your judgment on it. Loss aversion – The pain of losing something is psychologically more powerful than the pleasure of gaining something. Auctioneers will play on this fear of losing out. Recency bias – you're more likely to remember something that happened recently than something that happened a while Auctioneers will remind you of recent growth but not mention stagnation or loss a few years ago Auction sins to avoid: Not bidding: The way to be the winner at the end is to actually bid. Deciding on a round number: You could miss out because you're not prepared to bid an extra $500-1000. Stopping and starting bidding: Stopping to confer makes it seem like you might not have enough in your pocket to close the deal. It doesn't project confidence. Asking if the property is on the market: You're going to know when the property is on the market. You'll see signs or they'll actually tell you. But it shouldn't matter – the seller came to sell the property. All you're doing is negotiating on price. Making ridiculous offers: Starting too low may in some cases allow bidders in who might otherwise stay out and can build momentum, which you want to avoid. Pretending you're not interested: Agents want to help genuine buyers purchase, so be a stand up buyer. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a range of my ebooks here: www.PodcastBonus.com.au Shownotes plus more here: Understand the psychology agents use on you + 6 Auction Sins to avoid Some of our favorited quotes from the show: "Again, I'm suggesting you should be aware of these techniques, so they don't catch you off guard so that you bid at auction with your head and not your heart." – Michael Yardney "Of course, in a rising market as we're experiencing in most parts of Australia, a property price achieved two or three months ago is going to be irrelevant." – Michael Yardney "Start with a strong confident bid that could knock out several other contenders early on." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Around Australia, weekend property auctions have become almost a national pastime. When we're not lockdown people go along to have a sticky beak, to get an idea of the market, to fantasize about their dream homes or just to watch the street theatre unfolding before them. It's a bit like watching buskers – you see an auction being conducted you just have to stop and gawk for a while. Of course, over the last year, we have had to learn to adapt in many auctions are conducted online, but auctions are still a particularly popular method of selling properties, especially when the market is strong. For all the street theatre and entertainment value, auctions represent a lot of stress and tension for those involved so today and in the next episode of the Michael Yardney podcast, we're going to concentrate on how to win at auctions. And even if you're not planning to buy a property at auction in the near future, there will be lots of information for you as I chat with my son Bryce Yardney, and you get inside the mind of a very successful investor and buyer's agent who has bought hundreds and hundreds of properties at auction for our clients at Metropole. What to do before and during an auction: Before the auction: Preliminaries include: getting finance preapproved, understanding what ownership entity you're using to purchase, having a strategic property plan if it's an investment, understanding what you must have, what you'd like to have, and what you don't have if you're buying a home and doing due diligence on your suburb. Attend a lot of auctions to feel at home with them and watch how the auctioneers work. In particular watch the auctioneer who will be showing the property you're interested in. Determining the value of the property Understand what's comparable in today's market. End up with 3 figures: what you think the property is worth The price you'd like to get it for The stretched price you're prepared to go to The purchase price shouldn't be determined by borrowing capacity. How do you find out the reserve? It doesn't really matter. Often the auctioneer doesn't know until the day of the auction. Finalizing contract terms Check with the agent to find out how should you pay the deposit Request any changes you'd like Four things the selling agent knows that you don't The real reason the vendor is selling The price range the owner wants How many other buyers are really interested and possibly the range they are likely to pay Things that are wrong with the property Can you buy a property before the auction? In today's market, because vendors are more confident that they will sell at auction, however, there are a number of reasons why vendors may be prepared to sell before auction. Nervous vendor Sensitive sellers – Sellers going through emotional challenges like death, divorce, illness. Time-sensitive vendors – they have already bought a house and the certainty of selling their old property outweighs the potential benefit of a higher price at auction. There isn't much interest in the property The agent is in a hurry to sell You have a premium offer on the table What to do on Auction Day Show up early Note the body language of the other players Know your competition – it's the underbidder, not the auctioneer Project confidence Open high Don't procrastinate over the next bid Avoid not bidding – that's not a strategy Know what bidding strategies don't work, like moving up in small increments or trying to swoop in at the end of the auction after staying silent If it's going to pass in, make sure you are the highest bidder, as this allows the first right to negotiate with the vendor. Be prepared to miss out. Stick to your 'walk-away price. Resources: Michael Yardney Bryce Yardney – director Metropole Projects Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Collect your bundle of eBooks and reports here: www.PodcastBonus.com.au Shownotes plus more here: Hands up if you want to know more about auctions, with Bryce Yardney Some of our favourite quotes from the show: "Auctions do bring out emotion and, at the moment it's FOMO." – Michael Yardney "Most adults start with the same amount of money. They just have a different philosophy." – Michael Yardney "Poor people spend their money and save what's left, while rich people save their money and spend what's left." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The pace of change has never been this fast, yet it will never be this slow again. They were the words of Justin Trudeau at the World Economic Forum even before the significant changes we have been experiencing in the last couple of years due to Covid. Moving forward a raft of demographic changes are going to fall into place to make Australia look very, very different in 10 years' time – in 2031. And this was the basis of a major research paper – Australia towards 2031 - by leading demographer Mark McCrindle, who is my guest on today's show to discuss the demographic, consumer, and behavioural trends that will be shaping our nation over the next decade. It will be critical to understand these changes as a property investor because demographics will drive our destiny; but today's show will also be useful if you're in business or planning your future career or life. Wouldn't it be nice to know what the world will be like in 2031? Looking Forward to 2031 Only occasionally in history do massive demographic changes combine with huge social shifts, ongoing generational transitions, and unprecedented technological innovation so that within the span of a decade society altogether alters. Australia is currently in the mist of one such transformation. These are not my words, but the words of my guest today leading demographer and futurist Mark McCrindle who has recently published a new report Australia Towards 2031 to help us understand the demographic, consumer and behavioural trends shaping our nation. Some of the major trends from Mark's report: We'll be larger than we are now, but: Australia's population will be slightly smaller, and less culturally diverse than it otherwise would have been. The next decade with higher healthcare, aged care, pension and economic stimulus will see higher costs, low revenues and more government deficits and debts then pre-Covid forecasts The demographic impact of Covid has largely been a slowdown in population growth as a result of delayed migration, combined with a slight drop in the fertility rate due to economic uncertainty. However, the speed at which we add 10 million people has increased Our cities and our CBDs have a bright future. While work from home has been fine, long-time we're going to be connecting in a workplace a couple of times a week This means that CBDs will also be lifestyle cities that are busy beyond work hours The future of work is hybrid – a mix of working remotely and in the workplace. That will have an impact on where we want to live and the types of property we'd like to live in Neighbourhood has become more important than ever. People are seeing more value in community. People have reprioritized, value relationships, want connection, and want to make an impact Many Australians are looking at moving out of the big smoke into regional Australia. And this will be more doable with flexible working more of us working from home or working wall flexible arrangements. With Australians living longer and working later, the workforce is becoming increasingly generationally diverse. Not all Australians feel ready for retirement Boomers are the generation most likely to feel prepared There is a gender gap, with females feeling less prepared than makes to be financially ready for retirement However, Australians are generally optimistic about their financial future COVID has accelerated our move toward a cashless society. Resources: Michael Yardney Mark McCrindle – McCrindle – Experts in Human Behaviour Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Have you ever wondered what Australia will look like in 2031? With Mark McCrindle Some of our favorite quotes from the show: "And that should give great comfort to people listening to this, particularly those interested in property and in business, that there will be three million or more people coming to Australia." – Michael Yardney "When we look back, we're probably even going to recognize it's the best time in history." – Michael Yardney "While perceived mistakes and failures knock some people down, it knocks them down for a long time, others learn from them." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

The underlying theme of my podcast is property investment, success and money, and today I will be talking a bit about success with Mark Creedon, founder of Business Accelerator Mastermind. But this isn't a business show – you will find what we discuss today relevant no matter what you do for a living, and if you are a property investor, you really do you have a business on the side – a property investment business. Many of us chase career titles, money, social status or even a big property portfolio — and yet we don't feel successful when we get those things. That's because you can only measure success in your life when you define what drives your happiness and helps you find purpose. So if you're struggling to define what a successful life means, you'll be pleased to hear Mark and me explain that: It's never too late to start over. You get to write your own definition of success. What is success? Is it wealth? Is it happiness? Is it fame? I have come to the conclusion that success can't be defined in one sentence, but instead, it is comprised of many things. Success is something you have to define for yourself and no one can do it for you. For some success means a sense of giving back to the world and making a difference. For others, it was a sense of accomplishment in their career or business. For others, it meant doing what they love. I bet there will be some people listening to this podcast disappointed in where they are in life at the moment. For some of their progress, we have been hindered by the economic and health challenges Covid has brought to us. For others, there will be various reasons why they haven't achieved the success they want to yet in life - yet. Stick with us because it's not too late and you're not too old to succeed. I'm sure you've heard stories like: At age 23, Oprah had just been fired from her first broadcasting job. At age 62, Colonel Sanders' fried chicken business KFC finally succeeded. At age 77, Nelson Mandela became South Africa's president after spending 27 years in jail. If we can learn anything from these people who succeed later in life, it's this: Success has no deadline. Success means attempting to move forward. Let's start with understanding the difference between accomplishment and success Accomplishment is often associated with success, but it is not the same. Accomplishment refers to the results we desire when we attempt to reach specific goals. Basically, it is the results that we plan or expect to occur. Success is the positive consequence or outcome of an achieved accomplishment. So what is needed to succeed in life? Physical health: you need to be physically healthy to have the energy to engage in life. If you don't have a baseline of health you can't function and can't be successful. Mental fitness: you need to be continuously engaging your mind. Learning and growing, experiencing new ideas, getting better, pursuing mastery, and putting your ideas to work to accomplish your goals. Emotional health: you need to be self-aware emotionally, feel good about yourself and have a positive self-image. If you are depressed to the point where you can't function, you can't be successful. Social health: you need positive relationships in your life and people that love and support you. You have friends and loved ones that you trust to make you a better person and inspire you to be better there are people you can call at any time of the night if you have a problem. Humans are social if you don't have people you care about and they care about you you can't be successful. Purpose/meaning/spiritual health: you make a positive impact in others' lives, giving meaning and purpose to your work and daily life. This keeps you focused and inspires you to overcome the day-to-day struggles and setbacks that are a part of everyone's life. Material wealth: there is a basic level of food shelter and clothing that all people need and that is paid for through money. If you are too poor or have too much stress from struggling financially you can't be successful. Conclusion Many people attribute success to how much money they have, what kind of car they drive, or the size of their home. However, should material items really define success? True success is gained not only from the achievement of our goals but also from the happiness and satisfaction derived from pursuing those goals. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Get a heap of special reports and eBooks here- www.PodcastBonus.com.au Shownotes plus more here: What Does Success Mean to You With Mark Creedon | Build a Business not a Job Some of our favourite quotes from the show: "I believe it's never too late to start over again, and you are allowed to write your own definition of success." – Michael Yardney "You can't just have a goal, have a d

Even before property prices started skyrocketing in the past year, buying a new home was unaffordable for many young Australians And today, with the huge surge in prices we've experienced, the dream of homeownership feels like it's moving completely out of reach of many young families. So, are we moving into a society of property haves and have nots? Well, that's one of the topics I'm going to be discussing on today's show with Federal Parliamentarian Tim Wilson who has been outspoken with his views on housing and superannuation. And, interestingly as you'll hear, one of his roles as Chair of the House of Representatives Standing Committee on Economics is overseeing Philip Lowe, the Governor of the Reserve Bank. We're going to be discuss a range interesting topics, and then at the end, I'll leave you with my mindset message. Interview with Tim Wilson In today's show, I talk about the future of housing and tax in Australia with Tim Wilson who has served as the Federal Liberal Member for Goldstein since 2016 and currently serves as Chair of the House of Representatives Standing Committee on Economics. Now I must declare that Tim is my local member of parliament, but I don't want today's show to be a political discussion, however, I am interested in an insider's view of what's going on with the economy and in particular our property markets. Some of the topics Tim and I Discuss: Why Tim got into politics His concerns about the future of the nation What he's learned about how political philosophy affects practical reality. Why Tim is so passionate about homeownership The belief that in Australia people have a right to own a home The rising gap with young Australians not easily able to get into their first home Whether the wealth gap is causing more political problems. Why homeownership is political The long-term trends around homeownership The barriers to homeownership How homeownership is tied to debates on super Tim's previous outspokenness on superannuation The design of the superannuation system What superannuation is for Where the economy is headed The difference between what the data says and what people are experiencing on the ground Resources: Michael Yardney Tim Wilson – Member of Parliament Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: A politician's view of the housing affordability debate with Tim Wilson MP Some of our favourite quotes from the show: "We're losing the middle class, so the rich are getting richer and the middle class are disappearing a bit." – Michael Yardney "Fortunately, the pessimists were let down when Australia's last quarterly GDP figures came in at a 0.7% growth for the June quarter." – Michael Yardney "How do you know when you're an expert? When you can consistently get the same result in any market." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

You have probably heard about IQ before. You may even have taken some free online quiz that promises to reveal how smart you are compared to Albert Einstein or Stephen Hawking. So, exactly what is IQ? How is it measured? And does it really matter? That's what I'm going to chat with Tom Corley about in today's Rich Habits Poor Habits podcast. And you'll be pleased to learn that your IQ or your intelligence isn't fixed. There are things you can do to increase it and other things that you may be doing that could decrease it. Let's start with a quick disclaimer… Having a lower IQ doesn't mean a person is unable to have a high quality, successful life, and vice versa. Most people have the capacity to learn regardless of their intelligence quotient score. However, some are simply able to learn more quickly or more easily than others. Some people may struggle in one area and have a weakness in one or more types of intelligence while they're very successful in other areas. I love Albert Einstein's famous quote when he said: Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid. Can You Really Increase Your IQ? There's science behind the idea that you can grow your IQ. Certain activities that force your brain to work can increase the number of dendrites your brain cells produce, as well as the number of branches on the axon trunk. Activities that grow your IQ include: Exercise, particularly aerobic exercise Learning activities (auditory, kinetic, tactile, and visual) Practicing existing skills Novel activities Traveling Learning something new Activities that decrease your IQ include: Watching TV Not reading Scrolling social media Sleeping too much Inactivity Wasting time Being close-minded It's easier to increase your IQ when you're younger, and it's more difficult as you get older. However, it is definitely possible even as you get older. It's really your habits that determine your genetics. Links and Resources: Tom Corley - Rich Habits Michael Yardney - Metropole Get your own copy of our international bestseller Rich Habits Poor Habits Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: Yes, it's true! Here's how you can improve your IQ | Rich Habits, Poor Habits with Tom Corley Some of our favourite quotes from the show: "It's not really a competition with other people, how you compare. We don't want to do it that way." –Michael Yardney "Your IQ isn't fixed at birth, and it's really your habits, not your genetics, that are going to determine your intelligence." – Michael Yardney "Nothing's as painful as being stuck where you don't belong." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

As a property investor, businessperson or entrepreneur you need to understand more than your craft. But you also need to keep an eye on Australia's economy and while the variables influencing our economic growth are numerous and complex there is one particular driver whose overwhelming influence has the final say – and that's demographics. Yet I've found the significance of demographics is perhaps underappreciated by most investors, which is unfortunate given its impact can be found in almost all aspects of our economy and property markets, from economic growth and consumption to interest rates and valuations, and even to the velocity of money and the balance sheets of the world's central banks. Demographics is what ties it all together. I guess because these trends are slow moving and long-term and not easily visible, they tend to be ignored by many, but they shouldn't be and that's why I have my regular chats with leading demographer Simon Kuestenmacher. Today we're going to talk about some recent forecasts that will have a significant impact on our economy, employment, and our property markets. Then I'll share today's mindset message with you. These projections reveal Australia's economic future As a property investor I've been a lifelong student of demographics because demographic changes influence the underlying growth rate of the economy, our unemployment rate, they directly influence housing market trends, living standards, our savings rates, consumption and the demand for financial assets As you can see, demographic creates our destiny so if you want to become a successful investor you must understand what demographic changes are ahead, and that's why I enjoy my regular chats with Simon Kuesetenmacher the co-founder of The Demographics Group, who's columns and media commentary focus on current socio-demographic trends and how these will impact Australia. Today's chat is about the latest five-year employment projections from the National Skills Commission. Our workforce is projected to grow by almost a million people over the five years from November 2020 to November 2025. That figure is a bit weaker than the growth leading up to the pandemic (1,154,000) but it suggests that we should be cautiously optimistic about our economy. More than half (53 percent) of the new jobs require a university-level education. These jobs can only get filled help via migration. Currently, 15 percent of all jobs are part of the middle class The projected growth falls way short of expectations, as only 7 percent of new jobs will be middle class. A favourable working age population will boost economic growth and provide inflationary pressures An unfavourable demographic makeup will impose deflationary pressures on an economy and provide a headwind to economic growth. A quarter of all new jobs fall into the healthcare sector. The hospitality sector is projected to have fully recovered by 2025 and even slightly improve on pre-pandemic levels. Professional services are adding plenty of jobs for highly trained workers. The two biggest growth occupations are aged and disabled carers and registered nurses, which together will grow by over 100,000 jobs. We are adding about 1000 new carer jobs every single month. Considering more elderly retirees will be keen to continue living in their own homes, the opportunities for innovative in-home care services are endless. Nurses will continue to be in high demand More than half of the new jobs we're creating fall into skill level one. We're also creating a lot of skill level four jobs – a quarter of all jobs will be in skill level four. We're creating some jobs, not too many, in skill level five jobs – very low-level jobs. Optimistic drivers of our economic future: Demographic profile We have this big millennial cohort that saves us from the immediate impacts of the pandemic simply because the millennial cohort, the largest cohort happens to be on this stage of a life cycle where they purchase housing. Students will return, and international talent will come back The international market completely evaporated due to the pandemic. The good news is, as soon as borders open up, the students will be back at pretty much pre-pandemic levels, which will bring life back into the inner cities Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: This new research makes Australia's economic future clear, with Simon Kuestenmacher Some of our favourite quotes from the show: "I think a favourable working-age population is going to be really important for us too." – Michael Yardney "We're going to be seen as a safe country to live in, an economy that's going to boom, and we'll be attracting the sort of peopl

Is this the beginning of the end of the property boom? If you've been following the property news lately you be forgiven for thinking so. The Chiefs of two of the biggest banks have suggested that regulators should step in and introduce macro-prudential controls to slow down our booming housing markets. In the closing statements of the 'Housing Market and Financial Stability' speech delivered by the RBA's Assistant Governor Michele Bullock on Wednesday, Bullock hinted at the possibility that the RBA could intervene in Australia's housing market. The International Monetary Fund has issued warning about Australian house prices and Digital Finance Analytics principal Martin North gave a chilling forecast that home prices in Sydney and Melbourne outer suburbs could fall a staggering $200,000 while the crash could be even worse for apartments when lending rules were tightened. So, should we be scared? That's what I'm going to be chatting about with Australia's leading housing economist Dr. Andrew Wilson today. And here's a spoiler alert – NO you don't need to worry! Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos, you'd know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you're a beginning property investor or an experienced I'm sure you'll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. However, since we recorded this video Federal Treasurer Josh Frydenberg has given the green light to introducing macroprudential curbs to mortgage lending. The last time lending restrictions were implemented in 2017, the focus was on dampening investor lending and the high percentage of interest-only mortgages. However, this time around the main concern seems to be an increasing share of loans on a high debt-to-income ratio. 22 percent of new mortgage holders now have debt that exceeds their income by more than six times, up from 16 percent a year ago. But, as you'll hear Andrew Wilson explain in our chat, regulators should be aware of unintended consequences. Their crackdown is likely to hit first home buyers rather than Australia's wealthy. Targeting debt-to-income ratios will have a limited impact on higher-wealth households, who often have multiple streams of income. However, it will affect lower-income households and those purchasing property for the first time. There are several reasons the debt-to-income ratios have risen over the past year. Firstly, low interest rates by their nature allow people to service more debt as repayments fall. And second, the share of lending to first-home buyers has increased significantly on the back of HomeBuilder, the federal government's First Home Loan Deposit Scheme, and individual state government incentives. First-home buyers tend to be more indebted as they stretch to get into the market. Given improving homeownership rates is the goal of these government schemes, it seems counterproductive to limit first-home buyers by reducing their ability to borrow. And another reason that debt to income ratios have increased is that many established homeowners have upgraded their homes over the last year or two, partly because of the low-cost borrowing, partly because the value of the home has increased considerably given them equity to upgrade and also because of the increased requirements for more space such as a zoom room, etc. My Property Update Chat with Andrew Wilson Looking back over the first 9 months of this year, our property markets have performed even more strongly than anyone ever expected, with the rates of house price growth at levels not seen for a number of decades. In fact, all capital city markets have already experienced double-digit capital growth so far this year and many locations will experience growth of more than 20% over 2021. Of course, it must be remembered that the last peak for our property markets was in 2017, and in many locations, housing prices remain stagnant over the ensuing couple of years and it was really only earlier this year that new highs were reached. Meaning that average price growth was unexceptional over the long term. But over the last week or two, there seems to have been a sudden change of sentiment about our booming housing markets. A sense of urgency has crept into the tone of those at the helm of our big banks, as the CEOs of two of Australia's largest banks have sounded off about emerging lending risks. Topics We Discuss on Today's Show: Whether or not the high debt-to-income ratios of home buyers is really a problem Price growth has averaged a modest 4% per annum since 2017 – despite record falls in mortgage rates over that period Monthly house price growth in most capital cities has halved over the past three months and continues to track downwards The Reserve Bank does n

The general theme of my podcast is property investment, success, and money. But today's show is more about you. If you're like many Australians you're sick of Covid; and by that I don't mean sick with Covid. But sick of the limitations, the restrictions, the lockdowns, the inability to get on with your life or your investing, or your business. I know many of us are feeling angry, cross, or frustrated and that's why today I'm having a chat with Rhonda Britten who is a repeat Oprah guest, a TEDx speaker and an Emmy award winner. And even if you're coping well with Covid you'll love this chat today as I'm sure Rhonda will give you some ideas to make your life even better. Rhonda Britten is not just another American "Rah Rah" motivational speaker, but she's the real deal as you'll find out in my chat with her today, so welcome to today's show. What Rhonda Britten has to say about fearless living Rhonda presented 2 sessions for my team at Metropole over the last month and my team were so taken by her inspiring message I invited Rhonda to pass on her message to you through this podcast. Currently many of us are being challenged by lockdowns, restrictions and uncertainty. This too shall pass, we know there is an end in sight and that's most likely when 80% of Australians will be vaccinated. But we're not really sure of the timing of this and if life will really get back to normal, so how do we cope between now and then? Rhonda's history and why she's qualified to give this kind of advice and information Rhonda shares her traumatic personal history, how it affected her, and what led from that Advice for Australians who are feeling that they've lost control of their lives Understanding the importance of letting go of things that aren't actually under our control Releasing the things that we can't control leaves room for us to take responsibility for what we can control Whether fearless living is really possible The importance of learning and identifying the ways that fear shows up in our lives The Stretch, Risk, or Die exercise and what it's for Why it's important to eliminated negative self-talk How to move yourself forward Rhonda's favourite exercise, Acknowledgements What we can do to better deal with anger How anger can be in service to freedom Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Rhonda Britten – www.FearlessLiving.org Download Rhonda Britten's free guide – www.FearlessLiving.org/risk Shownotes plus more here: Fearless living in challenging times with Rhonda Britten Some of our favourite quotes from the show: "We're worried, we're scared, we're stressed, and we're continuously bombarded by negative messages in the media." – Michael Yardney "I think the other thing is, a lot of people feel they've lost control over their lives." – Michael Yardney "Feelings are just energy, so you want to move that energy through you." – Rhonda Britten PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

If you've been following the Real Estate columns in the media recently it would have been hard to miss stories about mortgage stress and rising interest rates. Of course, it's the same property pessimist chasing a headline giving biased views based on the preconception that our property markets are about to crash and backed up by very small sample sizes of data. So in today's show, Dr. Andrew Wilson and I will discuss not just our views but those of the Reserve Bank – so at the end of our chat, you'll have a good idea about the direction of interest rates in the medium-term. We'll also discuss a comment by Assistant RBA Governor Luci Ellis who recently lashed out at the Federal Government suggesting negative gearing and Capital Gains Tax discounts essentially encourage speculative investment and are fuelling property price growth. Really! Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos, you'd know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr. Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you're a beginning property investor or an experienced I'm sure you'll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. I'll leave a link in the show notes so you can see all the charts that support the information we'll talk about, but in general, that won't be necessary – Andrew explains his position well. I'll also be sharing my regular mindset message where I'll explain why being rich is a choice. So welcome to today's show. Has unemployment really improved? Officially Australia's unemployment rate is at its lowest level in almost 13 years, despite half the country being in the grips of lockdown. However, these figures don't really reflect what's happening on the ground where things have been getting worse for Australian workers. The headline unemployment rate is no longer a good representation of the jobs market, falling in August despite workers doing it tough. As lockdowns were implemented, more Australians worked fewer, or no hours and underemployment rose. It's not surprising that the labour market took a beating as businesses closed their doors. In August, the participation rate dropped from 66 to 65.2 percent, with 211,188 fewer people in the labour force than in the June survey. On top of people simply ceasing looking for work, those in the workforce are seeing their hours drop, particularly in locked-down areas like Victoria and New South Wales. Hours worked nationally fell by 3.7 percent last month, though NSW bore the brunt of the losses, with hours worked down 13 percent since the lockdown started. Interestingly people working just one hour per week are technically classified as employed, even though clearly, they wouldn't consider that to be the case if you asked them. Rate hikes are further away than you think A number of the regular property pessimists are doing the rounds of the media chasing headlines telling anyone who is willing to listen that many Australians will fall into mortgage stress when interest rates rise and that this will occur sooner rather than later. However, Governor Lowe once again asserted that this won't happen any time soon. He said he finds it difficult to understand why the market is pricing in rate action 2022 and 2023 and confirmed that interest rate will only rise when inflation hits the target of between 2.5% to 3% and stays there for some time. Clearly, our rising house prices are not going to affect the RBA's interest rate decisions and Governor Lowe confirmed that house prices and housing affordability are not the domain of the RBA. Here's what causing our property boom. Assistant RBA Governor Luci Ellis recently lashed out at the Federal Government suggesting negative gearing and Capital Gains Tax discounts essentially encourage speculative investment and are fuelling property price growth. These interesting comments at a time when the number of investors is below historical averages, and the government has supported first home buyers to get into the market. Property Listings are rising Watch this week's Property Insider video as Dr. Andrew Wilson and I discuss the surge in listings of properties for sale that has suddenly occurred. It will be interesting to see how these extra properties for sale will affect property price growth, however as most sellers are also buyers, I see significant market depth ahead and higher prices at the end of this year. Resources: Michael Yardney Dr. Andrew Wilson, chief economist My Housing Market As our property markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Have you heard the one about rising interest rates? With

In today's podcast we're going to take a deep dive into the Brisbane property market with two of my regular guests, Stuart Weymss and Brett Warren. After a number of years of sluggish growth, Brisbane has been one of the strongest performing property markets over the last year and is likely to continue to be amongst the top performers over the next few years. Today you'll hear that recently Pam and I bought a property in Brisbane, as did Stuart Wemyss, and while this isn't a recommendation that you should be buying in Brisbane as I don't know your circumstances, I think it will be informative to understand the thought process that I went through. So even if you're not interested in buying property in Brisbane at the moment, as an investor I'm sure you'll benefit from the insights shared by these two experts. Property Investment in Brisbane While there are many great property investment opportunities in Australia, the Brisbane property market has been receiving more than its fair share of attention recently. Brisbane had already been one of Australia's best performing property markets this year even before it received the news of becoming host to the 2032 Olympics. So will this add more fuel to the fire, will Brisbane finally enjoy it's time in the sun, or will it remain the poor cousin to the big property markets of Melbourne and Sydney? I would like to start with a little disclaimer, there are many great investment markets in Australia, and I believe as you build a substantial property portfolio you should diversify and have assets in all our big capital cities – Melbourne, Sydney and Brisbane. In today's show, we're just going to talk about Brisbane. Pros and Cons of investing in Brisbane property: Pros: Increased interstate and overseas migration Large infrastructure spending The city was overdue for growth as it's matured in recent years with billions of dollars in infrastructure projects in the pipeline that will be transformational for the city that has seen significant population growth, Better affordability Increasing job opportunities – no need to leave Brisbane anymore Lower stamp duty Higher rental yield Brisbane's changing culture Brisbane is well-known for its outdoor lifestyle, especially the plethora of dining options along the Brisbane River in residential and restaurant precincts such as Teneriffe, Bulimba, New Farm, and West End. Cons: Smaller city than Melbourne and Sydney Fewer Job opportunities The Olympics don't guarantee house price growth The direct benefit of the 2032 Olympic Games will vary considerably by location, underpinned by predominantly new infrastructure development projects and the subsequent downstream economic and lifestyle benefits that they provide. The 2032 Games are expected to support 91,600 full-time equivalent jobs in Queensland and 122,900 nationally. It is often the case that improved labor market conditions result in improved property market conditions, as more jobs lead to greater collective debt serviceability levels, though the broader economy will dictate this, and it will undoubtedly be influenced by the global economy at the time. The prospect of billions of dollars of planned infrastructure now being brought forward because of the Games will be a big driver of house prices. Major infrastructure projects tend to have an uplifting effect on property prices as the projects create jobs, strengthen travel links, and improve amenities such as retail outlets and social venues. What interstate investors need to know about Brisbane There is not one Brisbane market, and the Gold Coast and Sunshine coast are not Brisbane The majority of the new infrastructure projects (before the Olympic games) are within 5 km of the CBD People are not wanting to move as far out from the city as they do in other states – more affluent inner suburbs outperform School catchments attract a premium Watch out for flooding Public transport is important Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Here's why I just invested in Brisbane property with Stuart Wemyss and Brett Warren Some of our favourite quotes from the show: "We look for locations where there will be strong population growth that would lead to economic growth ." – Michael Yardney "You can't assume that you can pull down the old house to build the new house." – Michael Yardney "We're not suggesting you look for a bargain in Brisbane, you won't find one, it's a very informed market." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's yo

Australia's economy and our property markets don't operate in isolation, so I believe it's good to regularly have a look at the big picture, the macroeconomic factors affecting not just Australia's economy, but the world economy to help us understand what's ahead for us, and I do this once a month in these Big Picture Podcasts with Pete Wargent. Since our chat last month Australia's circumstances have rapidly evolved so we've got a lot to discuss this month. And today after my chat with Pete, I'll share my mindset message with you. The Big Picture in September We're in unfamiliar territory. A lot remains unknown about what life will look like on the other side of our lockdowns. This time around it looks like we're not exiting into a COVID-zero world so we don't know what that really means; how households will spend their money, how many businesses will close, what mobility will look like. Basically, we're in uncharted waters. Yet despite what is now 3 months of lockdown in Sydney and Melbourne in lockdown number 6 – in fact with more Australians in lockdown than are not – our real estate markets are still in good shape. Of course, there are concerns that as restrictions drag on, they will weigh down on the housing market and household financial situations. But so far there are very few signs of housing distress when compared to last year: loan deferrals are at a fraction of the first lockdown, property price discounting is minimal and there is a relatively low number of distressed sales. In fact, property values increased in all our capital cities over the months of lockdown. There seems to be a recognition that the lockdown doesn't go on forever, and that once the vaccination rate gets past a critical number our economy will re-open. There seems to be less fear around losing jobs and greater confidence that house prices can be resilient, and, on balance, our property markets are holding up much better than they did last year. Some of the topics I discuss with Pete: What it's like to live in a place that's not in lockdown How Australia side-stepped a recession The shape of the recovery The effect of extended lockdowns on the economy How vaccination increases and restriction increases will boost the economy The Reserve Bank's vision of an economic rebound The fall in job ads and the number of Australians working multiple jobs The current unemployment levels and what's projected to happen to them The reduction of Australian credit card debt The increase in Australian savings The current activity in home loans The fact that property prices have been largely unaffected by the pandemic, lockdowns, and restrictions Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: www.PodcastBonus.com.au Join Michael's Property Update private Facebook group by clicking here Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: September Big Picture Podcast with Pete Wargent Some of our favourite quotes from the show: "As we entered these lockdowns many households had a stronger financial balance sheet and the housing market was at an all-time high, so Australia's wealth was high." – Michael Yardney "Just by the skin of the teeth, we dodged what could have been a double-dip recession." – Michael Yardney "You've won the lottery by being born at this time." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how