Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

If you're a property investor you probably want to increase your rental returns. And while you've most likely enjoyed strong capital growth over the last couple of years, moving forward this is likely to be more subdued – meaning getting better rentals is going to be even more important. So how do you do this without losing tenants? That's what I'm going to chat about today with Leanne Jopson, national director of Property Management of Metropole so that at the end of today's podcast you'll have some hints about how, when, and how much you can increase your rents. 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 Property management for serious property investors – get the team at Metropole to help you maximise your returns. Get your bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Proven strategies to boost your investment property's rent, with Leanne Jopson

Are property investors greedy? What right have they got your own so many properties when others don't have shelter? That's one of the questions we answer in today's question-and-answer podcast with Belinda Botzolis, who's been a valuer for over 16 years and now brings her passion and years of experience to her role as one of the property strategists at Metropole. She also gives a valuer's tip that may just save you some money as well as answering the question about which renovations add value and which don't. Then, instead of my usual mindset message, I'll have a short conversation with Tom Corley about how much better you need to be to win. 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 you a bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Are property investors really greedy? Q &A day with Belinda Botzolis

What's ahead for our property markets, not just now but in the medium and long-term future? Wouldn't you like to know? Because if you did, that would make you a more successful investor, wouldn't it? We understand that forecasting just seems to be getting harder and harder. There are so many conflicting factors out there. But in today's show, I discuss three megatrends that are going to signal Australia's future with leading demographer Simon Kustenmacher to give you more clarity about what's ahead, and that will help you make better investment and business decisions. 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 personalized Strategic Property Plan – this will help both beginning and experienced investors. Get a bundle of eBooks and reports here:- www.PodcastBonus.com.au Shownotes plus more here: You must understand these 3 megatrends that signal Australia's future, with Simon Kuestenmacher

Want to be successful in life? Whether it's with your property investments, personal life, profession, or business, life will throw you challenges. Just look at what's happened to us over the last couple of years. So, allow me to let you in on a little home truth: It takes a special kind of fortitude to be successful and when the going gets tough, the tough don't get going—they reach for a winning prescription called mental toughness. What's mental toughness all about? It's been described as the "ability to work hard and respond resiliently to failure and adversity; it's the inner quality that enables individuals to work hard and stick to their long-term passions and goals. And it's the topic of today's podcast with Mark Creedon founder and CEO of Business Accelerator Mastermind. 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 Get a bundle of eBooks and reports – www.PodcastBonus.com.au Shownotes plus more here: Here's why you need to develop "mental toughness" to be more successful with Mark Creedon

With the election result now clear our property markets can resume their normal activities. And while the ALP fiddled around the edges with some First Home Buyer incentives, the absence of significant macro policy differences between the new Labor Government and the Coalition suggests there will be minimal impact in the short term on our property markets. However, I can see some unintended and concerning long-term consequences that could have a major effect on our economy and our property markets share this with you today in this episode of my podcast. Regular listeners will know that I record a weekly Property Insiders video with Dr Andrew Wilson, Australia's leading independent housing economist, and today's podcast is the audio of a recent YouTube video as we discuss our economy, the latest unemployment figures, wages growth, what Reserve Bank feels about interest rates, and what our new government may mean for property. 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 Get your bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Beware of the unintended economic consequences ahead with Dr Andrew Wilson

A common property investing rule-of-thumb is that you should "buy property and never sell". That's because property prices always trend higher over time which means you benefit from compounding capital growth. Of course, the rule-of-thumb should be adjusted to include "buy quality property and never sell" to ensure you maximize investment returns. But the reality is, that sometimes the smartest thing to do is to sell a property, even if it is a quality asset if it helps you move forward towards achieving your goals. So, in today's show, I chat with independent financial adviser Stuart Wemyss and discuss how to decide if your investment property is a dud and you should sell it, or even if your property is performing well what are the common scenarios where we would recommend you sell your property. Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Books – Rules of the Lending Game & Investopoly Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get you a bundle of free eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Should you ever sell a property? Here are 4 times the answer may be yes with Stuart Weymss

As our population grows, and it surely will, this will place an increasing demand on our infrastructure and maybe we won't be able to keep up. Of course, it's much more than just being stuck in the traffic or wedged in overcrowded public transport just to get where you need to get to, according to my guest today, Ross Elliot. So, whether you're a property investor wanting to understand how future development and infrastructure are going to influence demand for housing or you're a business owner needing to understand what's ahead, I'm sure at the end of today's show you'll have more clarity from the insights Ross Elliot is going to share. Links and Resources: Michael Yardney Ross Elliott – subscribe to Ross' blog – The Pulse Read Ross Elliott's blogs on Property Update here Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get your bundle of free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Can we trust the powers that be with the looming infrastructure shortage? With Ross Elliot

If you're a property investor, today's episode is a must. Why? Because the taxman is after you – you and all property investors. It's not long until tax time and the Australian Taxation Office is already preparing its so-called "hit list" of priority areas due for a crackdown in the 2021-22 financial year. Property owners, crypto investors, and those working in the gig economy will be front of mind for the tax office plus a number of other areas, so today Ken Raiss and I are going to look at this hit list in the hope that you'll be able to avoid a nasty surprise at tax time. What the taxman is looking for? Repairs vs. maintenance Interest expenses Property divestments Personal expenses including holiday homes Renting part of your home Double claims for interest expenses Incorrect Apportioning of rental income Weak claims for new rental properties Substantiation of expenses - receipts Links and Resources: Michael Yardney 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 Get your bundle of eBooks and Reports at www.PodcastBonus.com.au Shownotes plus more here: Attention property investors, the tax man is after you. Here's what he's looking for, with Ken Raiss

In this episode, Brett Warren discusses three questions with us, during this month's Q&A Day. These questions are: Why invest in affluent areas rather than cheaper more affordable areas? What will rising interest rates do to our rental markets? How do you stay positive when there's so much negative news in the media now? 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 Get a bundle of eBooks and reports = www.PodcastBonus.com.au Shownotes plus more here: Q&A Day – Why not invest in affordable properties, rising rates and rents PLUS more, with Brett Warren

The Reserve Bank thought it had time on its hands and could be patient in lifting interest rates. However, evidence of strong inflation caught the RBA by surprise and it has raised its forecasts for inflation and cut its forecasts for economic growth and unemployment. The RBA forecasts that the economy will expand by 3.5 per cent over the year to June 2022, before picking up to a 4.25 per cent annual growth rate in December 2022. Underlying inflation is expected to exceed the top of the 2-3 per cent target band through to December 2023. 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 Get your bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: The RBA forecasts what's ahead – and it has flip-flopped, with Dr Andrew Wilson

What are the big influences in our property market today? The main one is one you probably haven't thought about. We often talk about price growth and supply and demand and the economy, but the one I'm going to share with you today may change the way you think about buying your next investment. So hopefully, at the end of today's show, you'll have some clarity on the big influences and what we at Metropole research when we help make our recommendations. Is this the most significant factor driving our property markets? What is the little secret behind whopping price growth? It's not the economy, even though that's important. It's not supply and demand, even though that plays a role. It's not infrastructure spending, availability of finance, or population growth either. Although all of these things are important and undoubtedly impact our real estate markets, the truth is there is one major factor that drives property values more than anything else. And that factor is homeowners or as we sometimes call them – Owner Occupiers. Fact is: they own close to 70 percent of all the properties in Australia and therefore dominate our market and without them, it simply falls over. So, it's interesting that while owner-occupiers are one of the most significant influences on property, they are commonly overlooked. Here's a relatively current snapshot of the national property market according to the Australian Bureau of Statistics (ABS) and CoreLogic: There are 10.7 million residential dwellings Australia-wide with a total value of $9.8 Trillion Spread across around 15,000 suburbs An additional 130,000 to 160,000 new dwellings are added every year The total debt against these dwellings is $2 Trillion (giving an overall Loan to Value Ratio for residential property of just over 20%) Residential real estate makes up 55.6% of Australian household wealth Investors own around 27% of Australian dwellings by number, and 24% by value. There are more than 2 million individual property investors in Australia Each property investor in Australia owns an average of 1.28 properties This is why I always give the following advice to investors who are searching for a strong property performer: Buy the type of property that will appeal to owner-occupiers. Owning a property with an element of scarcity that is located close to amenities, jobs, transport, lifestyle features and cultural, social aspects like cafés, bars, and arts precincts will always attract home buyers. But these are features that appeal to tenants, too. In general, the more established suburbs with better infrastructure, shopping, and amenities tend to be close to the CBD and the water and that's where the wealthy want to and can afford to live, and they're prepared to pay a premium to live there. The rich do not like to commute. Overall, by focussing your research on what those often-overlooked owner-occupiers are doing, you may just find an investment that outperforms the market and delivers strong value and growth over the long term. The 7 biggest influencers of our property markets Regardless of the economy, cycle, or market conditions, property is always a hot topic of conversation. The reality is that the property market isn't an independent economy sector. Rather, it's inextricably linked to a myriad of other financial, social, and political factors, all of which impact what your family home, or your next investment property, might be worth. So, what are these factors? Household formation This oft-overlooked factor is actually more important than overall population growth because what increases the demand for housing isn't the number of people living in a city (or country), but the number of dwellings needed to accommodate them. Demographics It's likely that now that we're moving into a Covid normal life our borders will open meaning more and more people will want to come and live in the safety of Australia. The population growth corridors of our cities tend to be poor capital growth locations. At the same time these locations tend to be where new families and migrants move, and this demographic, which tends to have a little spare cash left at the end of the month, are areas where there is little ability to push up the value of properties – these are not high wage-earning areas. Affordability Investors should avoid blue-collar areas or young family suburbs and seek out suburbs where wages growth is higher than the state averages. These are locations where people can afford to and will be prepared to, pay a premium to live. These are often the gentrifying middle ring suburbs of our capital cities. Credit policy Over the past few years, we've seen the significant impact changes in credit policy can have on our property markets. The fact is people simply can't buy properties if they can't access the cash. And while interest rates are unlikely to rise in the next little while, APRA is likely to interfere to try and slow down our property markets. National wealth, wage grow

Australia's economy and our property markets don't operate in isolation, and Inflation is occurring all around the world, so that's why each month I take time out to 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 record these Big Picture Podcasts with Pete Wargent once a month. Will inflation send interest rates sky-high? Australia's inflation rate has predictably increased sharply again over the March quarter to the highest level reported since the introduction of the GST impacted prices back in 2000. So, what does this mean for interest rates, property markets, and their economy in general? Inflation We really must start the discussion today with the high inflation number - headline CPI increased 2.1% over the last quarter giving us an annual rise of 5.1%. This came in to be higher than what most market commentators expected. The primary driver of the inflation outbreak was related to increases in the price of fuel and housebuilding costs. Supply constraints are struggling to match demand from Covid stimulus policies The Ukraine war raised the price of oil to record levels in the March quarter Is it time for a rate rise? Interest rates will start to go up because of the inflation rise. It's not surprising that some commentators are looking back at the 1970s and 1980s when the Reserve Bank used interest rates to stop rising inflation which eventually led to a recession in the early 1980s and then again in the early 1990s. Interest rate hikes should be considered and gradual, the Reserve Bank has learned from the past. Interest rates will need to rise to keep Australia's dollar stable Inflation is a feature, not a bug. It's there by design and it's useful for those who own assets This is what will reduce the fall in house prices While it is well known that falling interest rates stimulate our housing market and push property prices up, and in time cash rate hikes have a negative impact on housing prices, that does not mean that cash rate hikes always cause a fall in housing prices. Strong employment and wage growth outlook will cushion the fall in house prices. Indebted households have very high savings levels which will limit the possibility of mortgage stress. Stronger regulation has reduced financial stability risk. A small percentage point increase in rates will have a relatively stronger impact on interest payments than when the cash rate started higher. Residential property borrowers have squirreled away a record $232 billion in offset accounts in the past 12 months The property boom is cooling down House price growth across the combined capital cities is 10 times slower this quarter compared to last, suggesting the property boom is on the cool down. Despite a slowing market, combined capital median house prices are at a new record high of $1.07 million. Units across the combined capital cities declined (1%) for the first time since June 2020, recording a median price of $616,942. Regional Australia is outperforming the cities for house price growth as the regional median house price increased by 3.1% over the last quarter and 20.8% annually. House prices in Melbourne and Canberra fell 0.7% and 0.9% from last quarter's record high. This is the first quarterly fall since the June 2020 quarter for Melbourne and the March 2020 quarter for Canberra. Perth has achieved a new record high house price for the first time since 2014. Brisbane and Adelaide are the only cities to have record-high unit prices, while Sydney, Melbourne, and Hobart units fall from the record high achieved in the previous quarter. This is the first time unit prices have declined in Sydney and Melbourne since mid-2020. Environmental risks are higher on the property market agenda. Have you ever considered climate change in the context of your property investments? Bush fires and floods have been very significant events in Australia over the last few years, and while the recent floods in Queensland and New South Wales were labeled a once-in-a-century event, I remember the Brisbane floods of 2011 very well. Climate experts have suggested that severe weather events may occur more frequently in the future. Moving forward, some areas may cost a lot more to insure. Others may be uninsurable. 3.5% of dwellings in Australia could be exposed to an elevated risk of climate-related events, and by the end of the century, that could increase to 8%. You have to consider these things, especially in high-risk areas. Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Get a bundle of free reports and eBooks – www.PodcastBonus.com.au Pete Wargent's new Podcast Shownotes plus more here: The Big Picture – economic and property trends you must understand with Pete Wargent Some of our favourite quotes from the show: "Everyone knows that the cost has gone up. It's not jus

If you were asked to list the top global news stories of the last year, off the top of your head, what would they be? Chances are you'd come up with some combination of COVID-19, lockdowns, economic woes, political conflict, floods, and other natural disasters, and maybe Free Britney thrown in for good measure. What's probably missing from your list is any good news, which seems pretty strange. Even in the midst of a global pandemic, surely a few positive things happened over the last year. So today I chat with Mark Creedon and we'll show you the world is not such a bad place to live in. Good News In 2021 It's not hard to find bad news in the media, and it's been said our brains are hardwired to look for the negatives. Today we're going to share some positive news stories you might have missed to brighten your outlook for the future. Now we could start off with the fact that the average Australian is wealthier than ever before and that over the last two years of the pandemic, the value of many homes has increased by at least 20% and in many cases 30%. And we could talk about the fact that anybody who wants a job can get a job in Australia. And we could of course talk about how while, unfortunately, some businesses are still suffering many businesses doing really well and will get to these at the end. But let's start with some big-picture good news stories. Let's kick off with by far the biggest good news story of the year: the COVID-19 vaccines. This is by far the most successful global health initiative ever undertaken. In less than two years not only did we come up with a way to overcome a brand new disease but rolled it out to more than half of humanity. Lots of good news on cancer this year. The American Cancer Society said there was a 2.4% decline between 2017 to 2018 — the largest one-year drop ever — and that between 1991 and 2018, cancer mortality has fallen by 31%. A lot of that is down to less smoking. The latest data on AIDS revealed there were1.5 million new HIV infections last year, a decline of 30% since 2010, and the lowest total number since 1990. 4. Stroke is the second-leading cause of death worldwide, and the third-leading cause of death and disability combined. New research released in September this year revealed that quietly and largely uncelebrated, we've made amazing progress, with the age-standardized number of cases decreasing by 17%, and deaths by 36% in the last two decades. Life expectancy has improved around the globe. Today most people in the world can expect to live as long as those in the very richest countries in 1950. The United Nations estimates a global average life expectancy of 72.6 years for 2019 – the global average today is higher than in any country back in 1950. According to the UN estimates the country with the best health in 1950 was Norway with a life expectancy of 72.3 years. Life expectancy in Australia continues to rise, with a baby boy expected to live to 81.2 years and a girl to 85.3 years, according to the latest figures released from the Australian Bureau of Statistics Worldwide, democracy appears to be under threat, but remember — bad news travels, good news doesn't. When Indonesia, the world's most populous Muslim country, produces the planet's most effective democratically elected leader — Joko Widodo — almost no one hears the story. Some of Australia's most beautiful natural sites, including the Daintree, the oldest tropical rainforest in the world, were returned to their traditional owners this year. A significant majority of people in wealthy countries now believe that having people of different ethnic, religious, and racial backgrounds improves society. In India, millions of people have gained access to clean water in the last two years. About 11.2 million, or 38% of all households in disease-vulnerable regions now have access to clean water, up from 2.9% in 2019. Look how many electric cars are being sold: 10% of global vehicle sales are now electric. More than a third of new German cars sold are now plugins, while in the world's largest car market EV sales have reached nearly 20%. In October 2021, the Tesla Model 3 was the bestselling car in Europe - not the bestselling electric vehicle — the bestselling car, overall The average Australian is wealthier than ever It's been suggested there is a war chest of $230 Billion in household savings Many homeowners have 30% more equity in their homes than they had 2 years ago Aussie super funds and shares portfolios are performing well Overall the total residential property market is worth close to $10 trillion and there is only $2 trillion worth of loans owing against all residential real estate. 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 h

If you're interested in becoming a successful property investor, my chat today with leading demographer Simon Kuestenmacher will be of real benefit to you, because we're going to talk about a demographic trend that is critical in understanding how our property markets will work moving forward. What is this trend? Probably not the trend you're thinking about. It's homeownership. Considering homeowners make up 70% of our property markets, I think you'll benefit from today's chat. Home Ownership Demographic Trends We often talk about Australians' passion for homeownership and how we are different from other parts of the world but are we really? Is Australian home ownership comparable with homeownership internationally? BY international comparison, the Australian homeownership doesn't appear to be overly high or low. Largely agrarian and industrial economies like Romania, Hungary, and Bulgaria have high homeownership rates, while highly urbanized service economies (Switzerland, Germany, South Korea) have relatively low homeownership rates. What does the census say about the percentage of renters in Australia? In 2006, only 26 percent of Australians (individuals not households as measured by the OECD) lived in a rented dwelling and by 2016 this number increased to 30 percent. Sure, today more people choose to rent as they move frequently for work opportunities (especially in their 20s and 30s before they have kids). What's happened to the percentage of homeowners based on age group over time? People born in the late 80s/early 90s have a homeownership rate of 37%. Their parents' generation was 50-55%. Every generation has a lower homeownership rate than the one before it. The two big benefits of homeownership: 1.) Owning a home is the most important factor in staving off poverty in old age. 2.) A homeowner builds the best house they can possibly afford. An investor or developer purchases the cheapest thing they can get away with. Homeowner homes are therefore of better quality. The type of houses Australians built in the past is very different from the modern home of today. Migrants have brought their preferences and styles with them and have changed the way homes look and the way we live. That is likely to continue. With our governments having a business plan to increase their population by around 40 million people by the middle of the century, that will impact what the home of the future looks like? Links and Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group Simon's article on Home ownership in The New Daily 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. Shownotes plus more here: Homeownership trends property investors must understand, with Simon Kuestenmacher Some of our favourite quotes from the show: "Australians seem to be obsessed with homeownership." – Michael Yardney "The modern home of today is very different." – Michael Yardney "You'll never regret taking a vacation, engaging in a new hobby, or spending a day with those who make you happy." – 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

How should you choose the location of your next investment property? And what are the floods going to mean for Brisbane property values? Those are two of your questions we answer in today's question and answer session with Brett Warren. In the end, you're going to learn a little about how we put our strategic property plan together to help Russel B left the following question – "Thanks for the great Podcast – I really love it – can I please ask a hypothetical question? If an investor had a spare $1m, where and how should they spend it? In the bigger capital city markets where the median property prices are now $1m (or close to) - where would their money be better spent? In the capital cities or further out where they can get more bang for their buck? Any areas that should be avoided at all costs?" While that's a good question - I'm afraid that's the wrong question, a shallow question, even though that's where most property investors start their journey. 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. What makes a great investment property for you is not likely to be the same as what would suit a different investor at a different stage in their investment journey or with a different risk profile or with a different size portfolio behind them. The correct order is, to begin with, the end in mind - what do you want to achieve with your property portfolio and then build a Property Plan to get you there. So, my first recommendation to anyone asking where to invest is to sit with an independent property strategist to formulate their plan. When you invest in property there are really only three major levers you can pull: Your budget – and that is usually determined by the banks. Location and you can't afford to compromise on that. The right property in that location. And unless you have an unlimited budget, and that applies to very few of us, investors usually need to compromise on at least one of the above. So back to the original question – what makes a great property investment location? It's impossible to say this location is perfect for everyone. When selecting a location, I would initially start by eliminating locations. I suggest you should only consider investing in Australia's big three capital cities. I'm also saying that it's important to be very selective in choosing suburbs in these cities – investment grade suburbs that are likely to outperform. I recommend looking for an area that has a long, proven history of strong capital growth and is likely to continue to outperform the averages. In general, there are 3 types of property. A-Grade homes and "investment 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 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 second location within their suburb or the less than perfect attributes of these properties mean they will slump more in downtimes. C grade properties – these are to be avoided unless they're in a great neighborhood and your intention is to demolish the property and replace it with something more appropriate for the location. Having said that can you give us some thoughts about how to invest that hypothetical $1million Sydney With the median house price in Sydney being well over $1 million, it would be hard to purchase an investment-grade house in a great location in Sydney, however, this budget would secure a family-friendly apartment in one of Sydney's high-growth suburbs. This makes "family-friendly" low rise, medium density apartments a great investment in Sydney's eastern suburbs, the Inner West or Lower North Shore. Melbourne Like in Sydney, $1,000,000 won't buy an investment house to get a great Melbourne, however, it would buy a townhouse which would make a great long-term investment. As rising property values create affordability issues more Melburnians are moving to townhouse living and getting modern large accommodation on compact blocks in Melbourne's inner-ring suburbs. Brisbane Brisbane has been one of Australia's top-performing property markets over the last 2 years and moving forward, Brisbane house prices are likely to continue to grow strongly. The Sunshine State is shining and strong demand for detached houses and outstanding demand for lifestyle areas means as an investor, if you buy the right investment property in the right location, you could be primed to supercharge your growth. $1 million would be a good home in an i

The media is full of concerns about the future of our property markets, so in today's podcast I'm chat with Ken Raiss, Australia's leading property tax accountant about the future of our markets and why we believe you shouldn't be concerned. I know there are lots of commentators out there who have a different view, but Ken has been involved in property almost as long as I have and if you've been regularly following this podcast or my blogs on Property Update you'll know that we have been pretty accurate in our forecasts over the last couple of years, so today we'll discuss how Covid changed our property markets, what's currently happening on the ground and what to look forward to. At the end of today's show, I hope you'll have more clarity on what's ahead. The Future of Our Property Markets Now that life is getting back to what some of us would call Covid Normal the housing markets are changing in front of our eyes. So how have our markets changed and what will the main drivers of our property markets be moving forward? That's what I want to chat about today with Australia's leading property tax accountant Ken Raiss director of Metropole Wealth Advisory. Let's first start by exploring some of the major impacts of the pandemic on the Australian housing markets over the last 2 years. Australian home values rose 25%, to record highs Despite negative predictions, last year was an extraordinary year in the housing market – around 98% of locations around Australia recorded rising property values with many properties rising in value by more than 20%. Before COVID-19, the ABS valued Australia's residential property at $7.1 trillion. It ended in 2021 with a valuation of $9.1 trillion. To put it another way, the growth in property wealth in the past two years is higher than all the gains over the decade before COVID-19 (2010-2019) combined. But that was an extraordinary market – a once-a-generation property boom, and this year property markets will behave differently. They will both behave more normally and be more fragmented First homebuyer activity spiked From June 2020, first home buyer activity surged amid the introduction of the HomeBuilder scheme, used alongside the First Home Loan Deposit Scheme, as well as other state-based grants and stamp duty concessions for first home buyers. The result was a spike in first home buyer activity, which peaked in January 2021. The spike mirrors first home buyer participation in 2009-10, which marked a temporary boost to the First Homeowner Grant. Since the January 2021 peak, first home buyer activity has diminished, reflecting higher barriers to entry as housing values substantially outpace incomes. Rents rose 11.8% to record highs, while gross yields fell to record lows There are multiple reasons rents have risen. Investor activity had been relatively subdued between 2017 and mid-2020. Rental supply may also have been eroded through the rise of rental services like Airbnb. This trend may have been particularly prevalent in tourism destinations across Australia, some of which have flourished amid a rise in domestic tourism in the past two years. Rents may have increased due to higher purchasing prices for investors who have recently purchased long-term rental accommodation. Over the course of 2021, annual rent value growth was at its highest level since 2008. The headline numbers hide the diversity of rental conditions. There has been a clear shift in rental preferences toward lower-density housing options through the pandemic, where the upwards pressure on rents has been more substantial. This trend has evolved over the past year, with rental affordability gradually deflecting more demand towards higher density rental options where the cost of renting is more affordable. Housing debt levels hit record highs Rapid increases in housing and rent values in the past two years were largely the result of a sizable reduction in the official cash rate. However, it is important to frame debt levels in the context of high asset values, and relatively low interest costs. RBA data shows housing interest payments to income have fallen to their lowest levels since 1999, and household debt has trended lower as a portion of housing values. The premium of house prices compared to units hit record highs Both the composition of the buyer pool and the impacts of COVID may have contributed to a record gap between house and unit values. Investors, who may have a preference for units, have been a relatively small part of demand through the upswing. Additionally, detached houses may have been in higher demand as Australians spent more time at home through the pandemic. Government policies such as the HomeBuilder grant may have also contributed to increased detached housing demand, due to tight construction timelines to qualify. The result is a record-high gap between house and unit values. The rise of the regions Migration trends over 2020 and 2021 revealed an uptick in the volume of people leaving

Last year was an extraordinary year for many homeowners and investors when their property values went up more than they owned in everyday regular income. Clearly, the market's changing. When the property market's booming, everyone's an investment genius. But when the property market's different, I think it's really important to listen to those who've got a perspective – who've lived and invested through many different cycles. That's why I'm talking to property researcher John Lindeman today. John believes that property values are going to keep rising. I know that's contrary to what some of the big bank economists are suggesting, so it will be interesting to hear his thoughts. In his recent report, John's gone back to 1901 to look at the statistics. He isn't just somebody thinking about property and telling you what's going to happen – he's done careful research to see what happens to property values when interest rates rise. At the end of today's show, I hope you'll have more clarity about what's ahead for today's property markets. Why property prices will keep rising Last year around 98% of locations around Australia recorded rising property values with many properties rising in value by more than 20%. Interestingly the Australian Bureau of Statistics said that the value of Australia's property portfolio skyrocketed to $9.9 trillion in 2021, driven by a record-shattering 23.7 percent annual rise in property prices. The collective wealth of homeowners increased by $2 trillion in just one year alone – a sum 30 percent larger than the annual output of the entire Australian economy. The growth in property wealth in the past two years is higher than all the gains over the decade before COVID-19 (2010-2019) combined. Some bank economists are predicting that house prices will fall this year or in 2023 as interest rates increase, but property market analyst John Lindeman explains why property prices will continue to rise. Economists are concerned that the Reserve Bank will soon raise interest rates to slow down inflation because inflation is very hard to reign in once it takes hold. They believe that higher interest rates will make housing less affordable, and that lower buyer demand will then push prices down. It seems to make sense that higher borrowing costs will reduce buyer demand and therefore prices will fall. But it's hard to test this theory because interest rates have gradually declined since 1990 when the standard variable home loan rate was all the way up to 13.5%. For over 30 years property prices have grown and interest rates have fallen. There certainly is a strong correlation between falling interest rates and rising property prices, but does this mean that the reverse is also true? How can we be sure that if interest rates rise, property prices will fall? In the last 30 years, property prices did not fall when interest rates rose One-third of our housing is fully owned, with mortgages having been paid off and no remaining debt. The owners are mostly older couples living in empty nests and when they sell, it will be to downsize. So, interest rate rises are of no concern to them. Another third of our housing stock is owned by investors who can claim the cost of housing finance interest against all their other income. This means that interest rate rises reduce the amount of income tax they pay. They can also raise asking rents on their properties to recoup the cost of any interest rate rises. Only one-third of our residential properties have mortgages that are being paid off by owner-occupiers. Most of them purchased their homes many years ago when rates were much higher than they are now. Their financial situations have improved since then and they have probably paid down some of their debt, so a rise in interest rates is manageable Only first home buyers are badly impacted when interest rates rise Some highly leveraged recent first-time buyers in new outer suburban first home buyer areas may experience mortgage stress when interest rates go up. If enough of them are forced to sell, and the number of potential first home buyers also falls, there is a risk that property values in first home buyer locations may fall. But first home buyers only comprise around one-tenth of all homeowners, and despite the personal and social impact of such events when they have occurred in the past, local markets have always bounced back into growth within a few months. The only times when housing prices went backward were during the First World War, the Great Depression, the Sixties Credit Squeeze, the Recession "We had to have", the Global Financial Crisis and most recently, because of APRA restrictions on the amount of housing finance that investors could obtain from the banks. The aim of interest rate rises is to curb inflation, not hit housing prices Because rising interest rates only impact a small percentage of homeowners, we should look at the reason that they are increased, which is to slow down the rate of inf

Maybe you're too biased to become a successful property investor? What do I mean by that? Well…did you know that we can sometimes be our own worst enemy as property investors? It's not because of the decisions we make, the opportunities we consider, or the investments we miss out on, but rather, it's due to the way we think. brains. By the last count, I've read that there are 188 types of these fallible mental shortcuts in existence, and they constantly impede our ability to make the best decisions about our careers, our relationships, and for building wealth over time. So, whether you are a beginner or an experienced investor, whether you're in business or an entrepreneur you'll enjoy my chat today with Mark Creeden, founder and CEO of Business Accelerator Mastermind as we discuss why seemingly rational people act irrationally when it comes to money. Cognitive Biases You Need to Know Without always knowing it, property investors are pre-programmed with a range of biases which may cause them to interpret information incorrectly and thus undertake sub-optimal investment decisions. You see, most of us think we're rational people but we're not. There is no shortage of cognitive biases out there that can trip up our brains. However, because cognitive biases are based on generalizations and assumptions, they can't always be correct. And if you don't check your reasoning, they can lead to judgments and decisions that negatively impact your business. Confirmation bias People tend to search for information that confirms their view of the world and ignore what doesn't fit. In an uncertain world, we love to be right because it helps us make sense of things. One way to counter confirmation bias is to read things you're going to disagree with. In other words, read all you can from reputable sources, whether it's confirming your original view or not. Anchoring bias We have a tendency to use anchors or reference points to make decisions and evaluations, and sometimes these lead us astray. This is because the initial price you set for a house or car or more abstractly, for a deal of any kind, tends to have ramifications right through the process of coming to an agreement. Whether we like it or not, our minds keep referring back to that initial number. It's important for you to evaluate any property deal based on its own fundamentals and all the information you have available from your research and due diligence at the time. Awareness bias How are your investments performing – are you happy with the results you're getting? It's been shown the poorest performers in all areas of life are the least aware of their own incompetence, a phenomenon known as the Dunning-Kruger effect. If you're the smartest person on your team you're in trouble. It's best to work with a team of mentors and professional advisors. Positivity bias In the face of lack of capital growth, prolonged vacancies, or inflated expenses, some investors continue to believe that their investment will turn the corner "one day." The problem with this is that when all signs point to a dud investment, it likely is one – but positivity bias can stand in the way of an investor taking action to rectify the situation. One of the best things an investor can do is admit what they don't know and get a good team of professionals around them. Negativity bias Just as some investors can be overly positive this is the tendency to put more emphasis on negative experiences rather than positive ones. Our ancestors evolved a brain that routinely tricked them into making three mistakes: overestimating threats, underestimating opportunities, and underestimating resources. This helped keep them alive. It's a great way to pass on genes, but a lousy way to promote quality of life or grow your wealth through property. Fact is: there will always be property pessimists around, but you can minimize your risks and maximize your upside if you educate yourself and become financially fluent, follow a proven strategy, and get a good team around you. Status quo bias This describes our tendency to stick with what we know, whether or not it's the best course of action. Psychologists call this "loss aversion" and it explains why so many Australians are willing to stick their money in a plain old bank account earning minimal interest, rather than taking the "perceived risk" of property investment. Successful investors, businesspeople, and entrepreneurs have mentors, coaches, and mastermind groups to help them see their blind spots and to encourage them to keep moving forward. Survivorship Bias The misconception here is that you should focus on the successful if you wish to become successful, while the truth is that when failure becomes invisible, the difference between failure and success may also become invisible. The trick when looking for advice is to not only learn what to do but also look for what not to do. Bandwagon bias This is the psychological phenomenon whereby people do something primarily

The property market is going to crash! How many times have we heard that one recently? 2021 was a year like no other - prices boomed creating new records and as the value of Australia's housing market skyrocketed, the collective wealth of homeowners jumped by over $2trillion despite the pandemic. And sure, it's clear that we won't see the same level of overall price growth in 2022. But a housing market crash? I don't think so, despite all the messages in the media suggesting it will occur. If you're a regular listener to this podcast or follow my blogs you will know that I have a weekly video chat with Dr. Andrew Wilson, Australia's leading housing market economist. Today's podcast is the audio of one of my recent chats with Andrew, who has an enviable record of property market forecasts and together we share 10 reasons why we don't think we're heading for a property market downturn soon. 10 Reasons Why the Property Market Won't Crash 2022 has already turned out to be a fascinating year in real estate. Last year was unusual when we experienced a once-in-a-generation property boom and values grew strongly almost everywhere. But now there seem to be more pessimistic forecasts about the short-term future of our housing markets than there are positive market commentators. If you've been watching our regular Property Insider weekly chats you would know that we believe property values will still grow this year, but more slowly and the markets will be much more fragmented, which of course is more normal. I don't want to minimize the horrors of war and the obvious humanitarian disaster that is occurring in front of our eyes. Nor do I want to downplay the terrible effects of the floods in Australia or the effects that supply shortages and rising global food prices will create in the developing world, but today I'd like to concentrate on some of the good news that can easily get lost and why I'm still confident about the future of the Australian Housing markets The average Australian is wealthier than ever It's been suggested there is a war chest of $230 Billion in household savings Many homeowners have 30% more equity in their homes than they had 2 years ago Aussie super funds and shares portfolios are performing well Overall the total residential property market is worth close to $10 trillion and there is only $2 trillion worth of loans owing against all residential real estate. Half of all homeowners have no mortgage ANZ bank suggests 70% of their borrowers are ahead in their mortgage payments It is estimated that $1.37 billion is sitting in offset or redraw accounts which would act as a buffer There's no evidence of mortgage stress for the majority of borrowers Interest rates are low and even when they rise, it will take 5 x 0.25% rises in rates to bring them back to where they were 3 years ago. And there was minimal mortgage stress then. Banks have been very conservative in stress testing loan applications and most who borrowed over the last couple of years will be able to handle the interest-rate increase of 2.5% or even 3%, and those who borrowed prior to these stricter requirements being brought in would have considerable equity in their properties Interest rates rose over a 6-year period commencing in 2002 and again in 2010-11 after the GFC yet the value of well-located properties continued to increase in most years that interest rates rose. Sure, many first home buyers have extended themselves and they will be the most vulnerable, but they'd rather eat Maggi Noodles than sell up their homes. Rising interest rates did not make the market fall in the past There is a shortage of supply of good properties at a time that Overseas Migration is going to pick up. Melbourne and Sydney will be the main beneficiaries of this. The same "experts" who are currently predicting that property markets will crash in 2023 are the same ones who have made multiple incorrect Doomsday predictions over the last couple of years. Our export income will improve because of the Russian Ukrainian crisis. Our tourist income will improve now that our international borders are opening. Australia's economy is growing strongly and will continue to do so and anyone who wants a job can get a job There's a shortage of rental properties, and rents will increase strongly this year, bringing more investors back into the market. 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 Get your bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Why are you worried? The property market won't crash. With Dr Andrew Wilson Some of our favourite quotes from the show: "In general, they'd rather eat Maggi Noodles than sell up their home, so they're not going to end up selling up and making the property marke

2022 promises to be a fascinating year in real estate. Last year was relatively unusual – we experienced a once-in-a-generation property boom where values grew strongly almost everywhere. Around 98% of locations across Australia recorded rising property values; with many properties rising in value by more than 20%. This year is shaping as a more "normal" market, where some locations will still see strong property price growth, some will experience moderate price growth, some locations will languish, and a few locations will see property values falling. And this will be dictated by local supply and demand and local economic conditions. New factors will further underpin our property markets this year. More investors will be getting into the market due to finance approval and higher rents. They will replace the first home buyers who are now finding properties less affordable. Around 200,000 visa holders will be coming to Australia in the next year as our international borders open. They will primarily be coming to Melbourne and Sydney where the jobs are Don't be scared by the property pessimists. Don't lose any sleep over the predictions that property values will drop 10 - 15% in 2023. In my mind the big banks' economists will be wrong – just like they were with their calls of property Armageddon in 2020. Property investment rules to keep in mind in changing times like these It seems that everyone is an investment genius when the property markets are booming. But even though our property markets have been resilient, in fact booming, the markets seem to be slowing down a little. And don't be fooled into thinking that all our economic and business problems are over. Now don't get me wrong – I don't think there's a property crash any time ahead, but I clearly see many headwinds that could slow us down – both international and local challenges. That's probably why I've been asked by both clients and the media what rules do I apply in times like this when the markets are changing in front of our eyes. Become financially fluent The secret to financial freedom is to spend less than you earn, save the balance and then wisely invest your savings in growth assets. Becoming financially fluent means you will invest rather than speculate. One of the reasons most investors don't develop the financial freedom they deserve is because they don't understand the rules of money and they end up buying their properties with emotion. Be it your first property or your next property, it should be part of a long-term plan and a stepping stone to building a substantial portfolio. By having a plan and a system to gauge the worth of an investment you will achieve better results. Learn to invest rather than speculate. Don't buy properties with emotion. Instead, you must start with a strategic property plan. First concentrate on building a substantial asset base over a number of property cycles, then slowly lower your loan to value ratios. Eventually, you'll be able to live off your cash machine. In other words, invest for the long term. Not every property is an investment-grade property Remember that while the location of your property will account for around 80% of its performance, it's also important to own the right property to suit the local demographic. Don't believe the hype Be careful who you listen to for advice. There are some great independent advisors out there, but the market is flooded with developers, property marketers, and real estate agents who don't really have your best interests at heart. Location does the heavy lifting Location will do 80% of the heavy lifting for your property's performance and that's why I only invest in select suburbs of our three major capital cities. Most jobs, most wages growth, most population growth and most of our economy happens in Australia's capital cities and in particular in our big 3 capital cities. Demographics drive markets Over the long-term demographics will be more important in shaping our property markets than the short-term ups and downs of interest rates, consumer confidence, and government meddling. Real estate investing is a game of finance with some properties thrown in the middle Cash flow management and the correct finance strategy is critical to successful property investing. This is little to do with low-interest rates and much more to do with having the correct finance product and setting aside financial buffers. The economy and our property markets move in cycles Property cycles vary in length and are affected by a myriad of social and economic factors and then, at times, the government lengthens or shortens the cycle by changing economic policies or interest rates. Market sentiment is one of the key drivers of property cycles and one of the reasons why our markets overreact, overshooting the mark during booms and getting too depressed during slumps. My 6 Stranded Strategic Approach to buying property: It's below intrinsic value — that's why I'd avoid new and off-the-pla

Are New Year's resolutions powerful? Or are they pointless? Every year more than 50% of people make New Year's resolutions. They plan to lose weight, quit smoking, work out, save money, get a promotion, get a raise, move their business to the next level, buy that investment property, and more. And yet, virtually every study tells us that around 80% of New Year's resolutions will get abandoned by this time of the year. So maybe you didn't keep up that resolution to exercise more or go to the gym, but today in my chat with Mark Creedon, founder and CEO of Business Accelerator Mastermind, we're going to talk about how to make 2022 a great year for you. Have you lapsed on your New Year's Resolutions? Whether it's a small, (seemingly) easily achievable goal or a huge, life-changing goal, people tend to fail at the same rate: Approximately 80 percent of people who make New Year's resolutions have dropped them by the second week of February. Some reasons why your resolutions may have failed. You're treating a marathon like a sprint Small changes stick better because they aren't intimidating. You're in too much of a hurry If it was quick and easy, everybody would do it, so it's in your best interest to exercise your patience muscles. 3. You don't believe in yourself The only way to defeat doubt is to believe in yourself. Who cares if you've failed a time or two? This year, you can try again (but better this time). You don't track your progress Keeping a written record of your progress will help you sustain an "I CAN do this" attitude. You have no social support It can be hard to stay motivated when you feel alone. The good news? You're not alone. You know your what but not your why The biggest reason why most New Year's resolutions fail: you know what you want but not why you want it. So, here are 9 strategies to rescue those resolutions: You can't achieve new goals or make desired changes without allocating time to do so. To make this a better year you will have to do things differently from last year. There are obviously some things you are going to need to keep doing, some new things you will need to do, and a bunch of things you'll have to stop doing to make room for the new, more productive activities. Priorities should govern schedule; schedule shouldn't govern priorities. To have a better year this year you'll have to wrest control away from others' priorities and be governed by your own priorities. Resolutions aren't resolutions without resolve. So, don't bother making resolutions to appease or satisfy others. Be honest with yourself – that's a prerequisite for success. Resolutions require resources. You aren't really serious about a resolution unless you invest in and gather the required resources. Sometimes investment motivates follow-through since you've spent time, effort, and money on it. But don't be held back by limited resource thinking. If you are truly committed, you'll find the resources. Daily Progress Refuse to end any day without doing something that moves you toward the goal, no matter how small! Who motivates the motivator? Any professional sports coach will tell you: measurement automatically improves performance, and measurement monitored by someone else, further improves performance. Build up to change So, say you resolve to get up an hour earlier every morning to work on some projects. You could start with 15 minutes for two weeks, then 20 minutes for two weeks, then 30 minutes for a month, then 45 minutes for two weeks, and then you will find reaching the hour mark a lot more achievable. It's not too late to regroup! You may already have let your resolutions slip away. Doesn't matter. Review the resolution and pick one or two that mean the most and apply the 7 ideas I've just shared with you. Don't try and do it all on your own It's really hard to be successful on your own. You need to find an accountability partner, a group of like-minded people, a coach, or talk to me about Business Accelerator Mastermind and I'll show you how we provide all 3! 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 Get your free bundle of reports and eBooks – www.PodcastBonus.com.au Shownotes plus more here: Where did my new year's resolution go? 9 Strategies to rescue them, with Mark Creedon Some of our favorite quotes from the show: "Just because 98% didn't get past their first or second or third property (well actually 92% don't get past their second property) that doesn't mean that you can't." – Michael Yardney "One of the comments I often make is: you haven't come this far to come this far. So, keep going." –Michael Yardney "Nothing changes until you change, and part of changing is changing who you hang around

If you've been listening to my podcasts or reading my blogs, you'll know I have a number of rules and frameworks to help my property investing. By having these it takes the emotion out of investing and makes the results more predictable, but what's the most important golden rule of property investing? That's a question I'm going to ask today of leading financial advisor Stuart Weymss, who's written a book about the golden rules of investing so let's see which rules have stood the test of time. The Golden Rules of Property Investing What's the most important factor in your property investment success? Well according to leading independent financial advisor Stuart Wemyss the most important rule is the quality of your assets. But what does this really mean and can really be as simple as that? So, let's start with the obvious question - what does quality mean? Quality really means that a property will benefit from excessive demand. What investment-grade means The Supply-demand equation Limited supply Demand is diversified Look for properties that attract buyers that can and are prepared to pay more because of their higher incomes. Factors that drive demand. Amenities. This includes necessities such as supermarkets, family doctors, dentists, etc. Equally important are entertainment amenities including cafes and restaurants, entertainment venues, parkland including running and bike tracks, and so on. Proximity to employment opportunities. There will always be substantially better employment opportunities in large capital cities for most industries. Schools. This can include sort after public school zones as well as desirable private schools. Proximity to schools can contribute a lot towards capital growth. Culture/community. It's a positive attribute for a location to have a good community vibe/feel. This is often present in local shopping strips and the mixture of businesses adds a lot to this attribute. Some inner suburbs lack this and it's to their detriment. Healthcare. Proximity to hospitals is important to some buyers, particularly older folk. Transpor This includes good public transport easily within walking distance as well as major arterial roads. Neighborhood Well also discuss playing the long game. Short term profit does not create long term value Three reasons short-term opportunities are inferior Risk-based returns Compounding capital growth Taxes Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game & Investopoly 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: Is this the most important Golden Rule of property investing? With Stuart Wemyss Some of our favorite quotes from the show: "Of the properties on the market at the moment, in my mind, there's probably less than 5% that I would class as investment-grade." – Michael Yardney "Even when you buy a home, for most people it's not their final home. It's not their forever home, so they should still think like an investor." – Michael Yardney "Enjoy the journey, because if you don't enjoy the journey, you're not going to appreciate the destination when you get there." – 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

Today's podcast will be a little different. Today I'm going to be brutal. I'm not holding back and I'm going to tell you some brutal truths about property investing You'll learn some of the things that can go wrong. You'll learn about the frustrations of being a property investor. You will learn some of the ways in which slick marketing can lead you astray. But stick with me. It's not all negative. Understanding what could go wrong is one way of making sure things don't go wrong and you can enjoy the success a small group of property investors enjoy. The problem is most people who get involved in property investment don't develop the financial freedom they're after. 50% of new investors sell up in the first 5 years Most investors never get past their 1st or second property Only 20,000 Australians own 6 properties or more. Now, this is not the type of information most people tell you about property when you first get started. That's probably because many of the people you speak with are trying to sell you something – sometimes it's a property – in other cases it's their services (buyers' agents). This episode is my attempt to redress that balance a little bit and share some brutal truths about property that you don't often come across. Despite what some people will tell you, property investment isn't easy. But it's simple. Now that isn't a play on words. What I'm trying to say is that if you do what most property investors do, you'll get the same results as most property investors get — and that's not pretty. You'll be heading in the right direction if you understand the following truths about real estate investing. Sorry, but... Property markets go through cycles. There are times every property cycle when values stagnate — sometimes for several years. And there are short periods when the value of your properties will fall a little. A-grade homes and investment-grade properties are less volatile – but property prices do fall at times, occasionally for several years in a row. You need a significant amount of money to invest You do need money to invest in property. If you don't have the financial discipline to save a deposit, you shouldn't be borrowing money to get involved in property. You can get rich over the long term, but it is not a get-rich-quick It takes the average investor 30 years to become financially independent through property Most investors waste the first ten years making mistakes and learning what not to do. The next few years are taken up selling underperforming assets and getting their financial house in order. Then it takes two or three good property cycles to become wealthy through property. Of course, you can shortcut this by getting the right mentors early in your journey. Saying "I'll be fearful when others are greedy, and I'll be greedy when others are fearful" is much easier than doing it. Most investors are overly optimistic during booms when they should be cautious and most pessimistic during downturns when they are surrounded by opportunities. No one really knows what the property market will do in the short term While in the long term our markets are driven by fundamentals, in the short-term human emotion and crowd psychology play havoc with the best-laid Real estate investment is a game of finance with some properties thrown in the middle Strategic property investors buy themselves time in the market by having financial buffers in place to see them through the ups and downs of the property cycle. Property investment is meant to be boring. Make your investing boring so the rest of your life can be exciting. There is more free property information available today than ever before, but much of it is useless Most market news is not only useless, but it is harmful to your financial health. Be careful who you listen to Rather than listen to the get-rich-quick stories, it's worth listening to those who talk about their mistakes and avoid the spruikers who don't — theirs are usually much bigger. There is virtually no accountability for the many property gurus and their hot spot predictions I find it interesting that people who have been wrong about everything for years still draw large crowds of followers looking for the next get rich quick scheme. The more "comfortable" an investment feels, the more likely you are to be taken by marketers or salespeople Avoid rental guarantees or promises of certain returns. Despite what most would like to think the biggest difference between ultra-successful property investors and the rest is not their property strategy or their investment "secrets." It's the way they think — their "mindset" and their Rich Habits. If you have credit card debt and are thinking about investing — stop Become financially fluent before you start investing otherwise the significant debt, you'll take on buying property will most likely overwhelm you. Residential real estate is a high growth, relatively low yield investment, so don't buy real estate for cash flow Of course, c

Do you want to be a successful property investor? Is so, you'll have to do things differently than most investors. One way to do that is to treat it like a business. Today, I'll be discussing this concept in detail with Australia's leading property tax accountant Ken Raiss, director of Metropole Wealth Advisory. I'm sure you'll find his take on things will be a little different, but you'll get some great insights to help you move your property investing up a level. Build Your Property Investment Business Property investors start their journey with good intentions great enthusiasm, but unfortunately, 92% don't manage to get past the stage of ever owning one or two investment properties. And less than 1% of investors build a portfolio of six or more properties. So, where did they go wrong? But in most cases, the root of their problem lies in their strategy – or rather the lack of one. It never fails to amaze me how many people go into property investing without any sort of strategy, let alone one that is specifically crafted to match their personal criteria, goals, time frame, budget and risk profile. It's like starting a new business without a business plan – and without any idea of what you want to sell, or how. And if you think about it, property investing is a business decision. So, how do you treat your properties like a business? Every property that doesn't fit your overall strategy will be the wrong choice.It's critical to get some expert guidance when developing your strategy to ensure you consider all the important factors relevant to your current position and long-term wealth creation and lifestyle goals. What does it mean to treat property as a business? All too often people are led into a false sense of security that a residential property in Australia will grow in value But less than 5% of properties are investment grade. You must also consider the money you use both from savings and borrowings. In today's market, you will need to spend $300k even on a less desirable investment and much more for an investment-grade That level of spending should require an understanding of the economic and market dynamics, a capability to identify the gems, and an ability to negotiate professionally. Most sellers go through a real estate agent who is trained and practiced at this and performs these functions daily. It is not a level playing field. You need to tip the scales back in your favor by seeking professional help. Buying the right property then gives you the best chance to maximize future capital growth which leads to improved rentals, equity to use for future purchases, and as part of an exit strategy to maximize capital gains. As a business, you need to consider future and current use, funding, potential to manufacture equity (as opposed to just waiting for the market), buying structure, impact on future lifestyle, and intergenerational wealth transfer. This requires a more holistic approach where the various components of tax, structures asset protection estate planning, risk, and retirement must be all taken into account under one central umbrella. Why is asset protection so important? Asset protection needs to be considered under three circumstances You work in a litigious profession such as a surgeon You find yourself in a management role where you take on responsibilities for employees where issues such as occupational, health, and safety concerns are part of your responsibilities. When you are wanting to wind down and live off the fruits of your hard work you do not want an unfortunate accident to wipe out your wealth through litigation. As a property investor, your risk is higher than normal as your tenants can sue if they are injured through your carelessness. In the case of litigation, you risk the loss of all your assets which could include the family home. There are specific steps we should all take such as not being in a position to be sued and having adequate insurance, but we all know this is not always enough. Many people are advised to move these assets to a trust if they feel sufficiently concerned but this triggers CGT and stamp duty and for the family home the potential loss of the main residence exemption and land tax exemption. There are strategies to eliminate these taxes which we at MWA assist our clients with and that is to implement an Equity Transfer Trust. You can also purchase your assets in a more appropriate structure from the beginning. Links and Resources: Michael Yardney 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: Build a property investment business you can be proud of with Ken Raiss Some of our favourite quotes from the show: "If you don't ask your consultants the right questions, sometimes they won't be forthcoming." – Michael Yardney "A trust is really just a document, a piece of

How steeply will house prices fall after this boom? Are townhouses good investments, what's ahead for Brisbane property? They are some of the questions we answer in today's Q&A podcast with Brett Warren. Question: Can real estate prices really keep rising considering where they are today? In the past, property values rose because interest rates dropped and prior to that one-income households became 2 income households, and we know financing became easier to obtain, but what will be the driver for future capital growth? That's a great question and 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. Now that I've given the spoiler alert let's dig into this more deeply so that you can understand my rationale behind those answers. Bank Predictions The Australian banks don't have a good track record in housing market forecasts. But if house prices fall by the amounts predicted this time around, that will make it the biggest housing downturn in modern history. 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. Why would house prices fall? Currently, Reserve Bank interest rates are 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. Moving forward some areas will strongly outperform others If social distancing and the Covid-19 environment have taught us anything, it has taught us the importance of the neighbourhood we live in. If you can leave your home and be within walking distance of, or a short trip to, a great shopping strip, your favourite coffee shop, amenities, the beach, a great park, the recently implemented coronavirus restrictions might seem a little more palatable than if you had none of that on your doorstep. That's why choosing the right neighbourhood is important for property investors. Question: Thanks for your podcast, I now understand the importance of selecting the right location to do the heavy lifting as you frequently mention, but I can't really afford a home in investment-grade suburbs of our capital cities. Rather than apartments, what do you think of townhouses as an investment? It's important to understand why we recommend buying investment-grade properties rather than affordable properties, and as you've hinted in your question a lot of this has to do with buying in the right location. The more affluent locations are likely to be less affected by external influences than the non-blue chip areas. So, one question you need to ask when buying an investment property is will there be ongoing demand from both owner-occupiers and tenants to live in this area despite what might happen to the world economy, the local economy, or local market conditions? You should also ask yourself the question are people living in this location going to be earning more income than average, having higher increases in their income than average, and will they be able to pay more to buy or rent in these locations? With houses becoming more unaffordable for many families, I see townhouses becoming more popular, particularly for millennials who no longer want to live in apartments but can't afford homes in the more established suburbs of our capital cities. Townhouses typically provide the size and privacy of a home, as well as outdoor space but on a compact block of land and being 2 stories, they utilize verticality to retain internal sizes. Because they are in smaller blocks of land, they are usually cheaper than single-family houses. I've seen some very large complexes of townhouses built on very small blocks of land in some of the outer suburbs – I don't see those making good investments. As always, the other investment criteria regarding investment-grade locations must be adhered to. Question: I was considering employing an advisor agent to help with my next investment property because he said he specializes in buying off-market properties. Can you really buy off-market properties? And is one really able to get them for well under the market value? Understand the difference between off-market and pre-market We buy these a lot at metropole - but vendors are very inform

Boy, there's a lot going on in the world right now isn't there? Overseas there are all the geopolitical issues, and back home there are our own political issues plus concerns about wages growth, inflation, and the economy. Of course, Australia's economy and our property markets don't operate in isolation, and that's why each month I take time out to 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. There has been a lot happening since I last spoke with Pete, so I'm sure you'll get a lot out of the show. Russia / Ukraine A lot of the world has been imposing sanctions on Russia, which will greatly impact the Russian economy. There is currently a huge humanitarian crisis. The world is seeing increased fuel and gas prices. Australia will probably reduce its dependence on Russian fossil fuels. Inflation will probably stick around longer because of this conflict. Monetary policy will become more complicated worldwide. We are likely to see more spending on defence. Brisbane Floods There has been some recent dramatic flooding in Brisbane, and while in the medium term our focus must be on the safety and rebuilding of Queensland, we also must consider the long-term effect of this flooding. The initial focus will be on clean up. Next will be repairs and insurance claims. In the five years after the 2011 floods, house prices in Brisbane increased by about 25% History suggests that the housing market will snap back quickly. Australia's Great Resignation? Information from the NAB Survey: While around 1 in 5 working Australians actually did change jobs in the past year, when asked about their plans to do so, almost 1 in 4 (23%) said they were also considering leaving their current place of employment. A further 4 in 10 (41%) indicated they were not considering leaving their current jobs but were keeping up to date with potential job opportunities. Around 3 in 10 (31%) said they had no intention to change jobs and did not keep up with potential job opportunities. Just over 1 in 20 (6%) were unsure. A greater share of full-time workers are considering leaving their jobs over the next 12 months (24% vs. 18% of part-timers). By age, younger workers are more likely to be considering a change (28%), but a sizeable share of Australians aged 30-49 (23%) and 50-64 917%) are also considering doing so. Importantly, the survey also finds that many of the key reasons workers are contemplating leaving their jobs are "push" factors - a lack of personal fulfillment, purpose or meaning, lack of career growth, mental health, poor pay, and benefits. Many Australians who are considering changing jobs are also looking for a fresh start, with around 3 in 10 planning to move to a different or new role in a new industry. Wages data and Interest rate rises. As expected, the Reserve Bank Board decided to maintain the cash rate at 10 basis points. When is the Reserve Bank going to raise interest rates? How high will interest rates go this cycle? These are questions of speculation and concern to commentators, homeowners, and investors. Some commentators were pointing to the possibility of rate hikes as soon as this June. If the RBA raises interest rates this year this will further decelerate already slowing housing price growth. However, for the bank to raise the cash rate, it will need inflation 'sustainably' within the 2% to 3% range – a scenario that would require wages growth in the order of 3-4%. Although the latest inflation data was stronger than expected and underlying inflation is back within the RBA's target range, the board will be waiting for evidence that wages have turned a corner. What are neutral interest rates? Interest rates are currently at very low stimulatory rates, and at some point, the Reserve Bank is going to need to raise them, not to slow down the market, but to allow a comfortable level of inflation and wages growth to occur. How high these rates will go will determine whether the household sector will be able to service higher mortgage rates. Currently, Australians are wealthier than they ever have been, and many are months ahead in their mortgage repayments. The NAB CEO suggested that he can't see mortgage stress occurring with rate prices anytime soon. Wages and rents are going to increase Home loan activity up again over January Home loan activity continued to rise over January In fact, home lending increased by 44.2% over the ending of January 2022. Net arrivals positive for the first time since June 2021 There were only 245,000 short-term visitors to Australia in 2021, down from 9.5 million two years prior. But now things are beginning to look up for the country's tourism sector. Australia eased its international border on 15 December 2021 to the 235k visa holders currently outside Australia. It also opened travel bubbles with Ja

Last week I was shocked to read the headline "Property prices set to tumble 15% as Ukraine crisis bites." It seems like the media and many commentators are looking for an excuse, any excuse, to explain why our property markets are going to crash. But now AMP has come out suggesting the fallout from the Russian invasion of Ukraine could slow Australian residential property sales, increase inflationary pressure, and accelerate a downturn in prices of about 15%. And that's despite Australia's property markets generally performing well during major economic, military, and terrorist crises over the last 35 years. And these forecasts don't seem to take into consideration the strength of the Australian economy, the shortage of good housing in Australia which will be challenged by a flood of incoming migrants, and the resilience of our housing markets and the Australian banking system. Now what's happening on the other side of the world is horrific, and the humanitarian and economic impact will be tremendous and possibly long-lasting, but what will it mean for our local property markets? That's what I'm going to ask Dr. Andrew Wilson, Australia's leading housing economist and chief economist with My Housing Market in today's Property Insiders chat. What will the Ukraine Crisis do to our economy and property markets? Will a war overseas cause local housing values to crash? The biggest local threat from the Ukrainian crisis – outside escalating into a regional or nuclear war – is likely to be rising oil and energy prices increasing inflationary pressure and the prospect of higher interest rates. While the Ukraine war may slow our economic growth a little due to the negative impact on confidence, it's unlikely to drive Australia into a recession locally – so why should property values fall? Strongest lift in the economy since 1976 The Australian economy (as measured by gross domestic product or GDP) grew by 3.4 percent in the December quarter – the strongest gain since March quarter 1976. The strong growth followed a 1.9 percent contraction in the September quarter, reflecting lockdowns. The economy is up 4.2 percent on the year. The biggest contribution to the expansion of the economy was household spending (+3.2 percentage points), followed by inventories (+0.9pp). A raft of sectors each reduced growth by 0.1pp, including dwellings, commercial construction, private equipment, public investment, net exports, and ownership transfer costs. 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 Get your bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Will the Ukraine crisis really cause property values to collapse, with Dr Andrew Wilson Some of our favourite quotes from the show: "At the moment, though, our economy is doing really well. We've had the strongest lift in our economy since 1976." – Michael Yardney "In fact, the quality of your property will make a big, big difference, and be the most important factor in the long-term returns and success of your investment." – Michael Yardney "Learning how to tolerate feeling lonely and finding ways to keep yourself company could help you get over fear of loneliness." – 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

With two months of data under our belt, the picture for property market is becoming clearer. Last year, property values increased almost everywhere, often by double digits. However, that's not how our property markets typically work or what you should expect of them this year. Moving forward, you can expect the Australian property market to be segmented, which is normal for Australia. And you'll see some segments that outperform the others strongly, some that have more moderate performance, some segments where values stagnate, and some segments where price values fall. That, as well as interest rates, is what you're going to hear in today's chat with Dr. Andrew Wilson. We discuss: When is the Reserve Bank going to raise interest rates? How high are interest rates going to go this cycle? What does the latest wages data tell us and what does that mean for interest rates? Wages Rise – But Still Well Below RBA Target Many commentators and economists brought forward their forecasts for the timing of the first RBA cash rate hike. Some were pointing to the possibility of rate hikes as soon as June this year. However, the latest wages data and a likely surge in workers indicate that reaching the RBA's benchmark of consistent wages growth above 3% per annum won't occur until next year. In fact, "real" annual wages (the difference between wages and inflation) fell by 0.3% over the year to the December quarter This is the first fall since March 2015 and second only to the record 0.5% fall recorded over September 2008 during the depths of the GFC. We're not there yet – we haven't reached a point where an interest rate hike makes sense. What's happening in our property markets? Our capital city housing markets have continued to report strong results The auction markets have commenced the season with higher clearance rates overall compared to the final months of 2021. Last year property values increased in almost every location around Australia – and that's very unusual. However, moving forward, the various property markets will be very segmented, which is a more "normal" property market. Despite strong buyer and seller activity, and strong auction clearance rates clearly still indicating a seller's market, property price growth over the month of February produced mixed results. Andrew Wilson's My Housing Market showed strong growth in asking prices for properties in Brisbane and Adelaide while house price growth in Sydney and Melbourne has moderated over February. While wages around Australia are much the same, the median house price in Sydney is double that of Brisbane and considerably more than the Melbourne a similar house would cost in Melbourne. Affordability is now constraining further price growth in more expensive capitals of Sydney and Melbourne as lending capacity has been maximized. The smaller capitals – particularly Brisbane and Adelaide continue to provide buyers with affordability advantages Housing market demand will continue to be supported by the imminent reintroduction of mass migration and rising confidence in a post-covid recovering economy and reinforced by a clear underlying shortage of housing. Investor activity will also continue to support housing markets, with surging rents enhancing yields and supporting total returns. The level of price growth will be determined by interest rates and income growth going forward which are likely to remain steady for the foreseeable future. The consolidation of affordability in housing markets over time in a normalized economic environment with low interest rates and steady income growth will result in flatter house price outcomes and a more predictable and sustainable housing market. 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 Get your bundle of free eBooks and reports – www.PodcastBonus.com.au Shownotes plus more here: Where is the property market heading? With Dr. Andrew Wilson Some of our favorite quotes from the show: "Even though wages have gone up a bit, most people recognize that it costs them more to live than their wages have gone up." Michael Yardney "It was a record month with lots of auctions in February, creating some records in the number of sales." Michael Yardney "What you have right now is enough to start." 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

I was reading a blog written by my good friend Tom Corley the other day and it was about success, and it made me think about success, what it means and how you achieve it. Now, if you're a regular listener to my podcast, you know we mainly talk about property, but if you think about it, property is just the vehicle you're using to achieve your own success - be it financial success or wealth or prosperity. The only person that can answer the question "what does success mean" is you. While I'm neither able nor willing to prescribe the ultimate definition of success, as this is not possible, I do want to spend a little bit of time talking about it on this podcast with Mark Creedon so that by the end of today show you'll figure out what's important to you and you'll have some key steps to help you achieve success in life property, business, your personal life or whatever. How Do You Know You've Achieved Success? Success can't be summed up in one sentence and there are different forms of success and that's what I'd like to chat about today with Mark Creedon, founder and CEO of Business Accelerator mastermind. I believe it is very important that one knows how to define success in life so you can be happy. As I was thinking about what we'd chat about I realized there are a number of different types of success. And I came to the conclusion you can focus on one type or you could pursue multiple types. Financial Success When you have enough wealth to meet your needs and your wants, that's financial success. Family Success When your kids know their parents love them, they will run through a brick wall for their parents. They'll do their homework, try to get good grades, take out the garbage, help out around the house, etc. That's family success. Health Success Exercising every day, eating healthy, moderating your consumption of alcohol and junk food, all lead to being healthy. When you are healthy, that's health success. Career Success Liking or loving what you do for a living, while earning the money you need to meet your needs/wants, fuels you to do your best at work. Doing your best and feeling fulfilled at whatever it is you do for a living is career success. Social Circle Success Everyone has an inner circle. When those people in your inner circle – family, friends and work colleagues are people you love, like, or care deeply about, that's social success. Mental Success When your mind is clear, calm, optimistic, upbeat, and not consumed with stress, that's mental success. Fulfillment Success Short-term happiness is anything you do that creates instant gratification. This type of happiness goes away quickly. Fulfillment, however, is long-term happiness. Fulfillment Success means feeling fulfilled in most aspects of your life: financial, family, health, career, social circle, and mental. This is the most likely the success everyone seeks. So let's talk a bit more about Success As we've said there are many different definitions of success. And not all of these will resonate with everyone, but chances are at least a few of them will. Success is always doing your best. Success can be achieved when you try your best in all aspects of everything you do, even if that doesn't lead to big results. Success is setting concrete goals. Be realistic and concrete when setting goals. Success does not come from setting abstract goals. If you know where you're heading, that is a success in itself. Success is having a place to call home. Home is where your heart soars. You are always successful when you can call a place home. Home doesn't have to be a specific structure. It can be a country, a city, or even a person. Success is understanding the difference between need and want. If you can meet your monthly obligations and fulfill your basic needs, you are successful. Success is believing you can. If you believe you can, you will succeed. Success is remembering to balance work with passion. Work without passion creates undue stress and empty achievements. Focus on what excites you. If you're happy at your job, that's great. However, even if you aren't, you can balance your formal job with hobbies or volunteer work you're passionate about. Success is taking care of your needs. Remember to put on your own oxygen mask before assisting others. Self-care is essential if you want to have any meaningful impact on the world around you. Success is learning that you sometimes have to say no. Success only comes with a balanced life. Part of balance is learning to say no. Success is knowing your life is filled with abundance. Love, health, friends, family…life is filled with abundance. Recognizing this is an important step to feeling grateful for all life has given you. If you can feel this, you are already experiencing success. Success is understanding you cannot keep what you don't give away. You will only succeed if you help others succeed. Learning to give instead of always take is part of creating a world we all want to live in. Success is

Another week, another fresh take on where the housing market is going. In the past month, all our major banks have changed their outlook for house prices and are now predicting the biggest housing crash in decades. 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. Of course, these 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. I thought I'd spend today discussing my thoughts with you – just you and me - no special guest on this show and I'll give you even more reasons why I can't see your property market crash ahead. That way, at the end of the show, you'll have more clarity and certainty about the housing market's future. Should You Be Worried? The major banks are predicting higher rates as soon as the middle of this year. They are also predicting property values to drop significantly in 2023. Will this really happen? We know the Reserve Bank is being patient and may not raise rates as quickly as many expected. In that case, ramifications for the housing market are unlikely to be as dramatic as those you're reading about in the media. Of course, the banks have already raised fixed term interest rates over the last few months, and there's little doubt that we're past the peak of house price growth. At the same time, buyers have more choices as vendors are placing their properties on the market for sale. So back to the original question: What does all this mean for house prices moving forward? Before I give you the answer to that, let's just work through what's likely to influence our property markets and the drivers that will affect house prices over the next year. Mortgage rates will rise independently of the RBA. They've already started rising. Mortgage rates will remain low by historical standards Despite the rises, the rates are still going to be low when compared to the past. Households are sitting on an unusual amount of savings. Household wealth has surged, along with the value of assets. Low stock availability and the strength of buyer interest will underpin the property markets. Investors, equity gains, and transaction volumes The RBA is waiting for wages to grow further. By the time the RBA raises the rates, wage rises, and a strengthened economy should be in place. Currently, Reserve Bank interest rates are 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. Why home prices won't crash While falling interest rates create extra borrowing capacity and therefore increase 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 wealthier than ever 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 rises ahead, most households should not feel mortgage stress. So, the bottom line is you don't have to lose any sleep – the housing market won't crash, and the value of your home won't plummet. However, property price growth will slow moving forward, as always happens in cyclical markets. 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 heap of eBooks and reports here: - www.PodcastBonus.com.au Shownotes plus more here: A property price collapse is coming – how scared should you be Some of our favourite quotes from the show: "New borrowers haven't necessarily seen their money shrink." – Michael Yardney "Interest rates aren't going to go up to the level that will cause property values to slump, but yet, mortgage rates from the banks will go up." – Michael Yardney "Reading's essential in creativity, in innovation, and for learning from the outcomes of history. It's an opportunity to open your imagination to other possibilities." – 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

Success doesn't just happen. It's planned for. You must be intentional about it and that takes discipline What plans do you have for your future? For your investments, your career, your business, your life? It's much easier to plan than just hoping for things to happen. You see planning is helping to bring the future into your present so that you can make some things happen right now. In my chat today with leading financial advisor Stuart Weymss, we talk about how he sets his goals, and plans for the future; and considering that he's very successful in many elements of his life I think it's worth hearing what he has to say. We also share lots of useful information about investing, so at the end of today's show, you'll have better direction about how to make 2022 a great year for your investments and business. 2022 Plans and Predictions I read an interesting quote recently- "The tragedy of life doesn't lie in not reaching your goal. The tragedy lies in having no goals to reach." Much has been written about goal setting and there are lots of podcasts about that, so today I won't bore you with another podcast about how to set goals, but I want to chat with somebody who set himself some audacious goals and has managed to achieve them, in order to help you make 2022 a great year. Recently leading independent financial advisor Stuart Wemyss wrote a great blog on his predictions for 2022 and how he plans to take advantage of the year, so I thought it was worth having a chat with him to see what he believes 2022 might bring us in investment opportunities. Do you set yourself goals? Last year's property boom was part of the design for Australia's recovery from Covid – low interest rates and various incentives were aimed at creating the wealth effect: encouraging people to spend while other incentives encouraged first homeowners to get into the market – it will be a very different year this year. However, I see 2022 as the year many investors try to catch up, realizing that they missed out on the great profits of last year. The problem is they will get it wrong because this year won't be the same as 2021. It means there will be more property casualties this year. What risks and opportunities do you see ahead in 2022? Tightening of lending / APRA interfering Rising interest rates – RBA unlikely to hike but banks may. Inflation become endemic – unlikely at present Another nasty strain of Covid Supply chains not freeing up as quickly as many think they will Rising interest rates in the US Politicians interfering with the housing market to win votes Geopolitical risks Have you used the risks and opportunities that the market could offer us this year to help you set your own business and financial goals? What goal-setting process do you use? Of course, you can minimize mistakes by putting together a well-formulated investment strategy and action plan based on your clearly defined financial goals and, most importantly, the reality of your situation. Planning is key with everything really and investment is no different. You wouldn't build a house without a set of plans or drive to a destination without first thinking about the best route to get you there. The same applies to investing Common mistakes that trap the unwary1. Following the wrong financial plan Blindly turning your investments over to a "professional" to do your investing for you Focusing on the "investment" and forgetting about you the investor Focusing on "saving" versus investing Falling victim to the prevailing investment myths Not treating your investments as a business Links and Resources: Michael Yardney Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game & Investopoly 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: Why we're excited for 2022 – plans and predictions with Stuart Wemyss Some of our favourite quotes from the show: "Having goals and just looking at them works subconsciously, doesn't it? It's a GPS, it finds what you're looking for." – Michael Yardney "I think it's worth setting some audacious goals to take advantage of what – if you do the right thing – could be another good year." – Michael Yardney "By developing a simplified way of thinking, of communicating, of performing, you're going to break through that ceiling." – 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'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