Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

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 However, they don't necessarily understand the rules of money and may be hanging on to outdated ideas about finance.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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter. After an initial "miracle" V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter. And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output. So what's ahead for our economy and our property markets, that's what I'm going to be chatting about with Australia's leading housing economist Dr Andrew Wilson today. And while you'll hear him give six reasons why we are optimistic about the economy moving forward, you'll also hear why we won't have the miraculous V shape recovery many were expecting. Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos you'd know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you're a beginning property investor or an experienced I'm sure you'll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos. I'll leave a link in the show notes so you can see all the charts that support the information we'll talk about, but in general that won't be necessary – Andrew explains his position well. I'll also be sharing my regular mindset message where I'll discuss 5 common money myths and mistakes I'm seeing many people make. There will be a lot written in our history books about the Coronavirus pandemic, how the world changed, how we live and the economic fallout that resulted from it. Last year there were a lot of letters being tossed out about the shape of the economic recovery from the short sharp recession Australia experienced: U, V, W, etc. There was even talk of a Nike swoosh shaped recovery. Well, the recession we had last year was not a normal recession. Government lockdowns and the fear of getting sick kept consumers at home, while the shutdown of supply chains, shortages of workers, the inability to source inputs, and the sudden fall in international tourism, students and migrants devastated businesses. Then all of a sudden it looked like we experienced a V-shaped recovery marked by a steep, dramatic decline in the economy in the middle of last year (the first half of the "V"), followed by an equally rapid upturn to pre-recession levels, (the second half of the "V"). But just look what's happened over the last few months with half of Australia in lockdown at a time that many of the government supports measures we enjoyed last year not there anymore. So, what's next for the Australian economy and for our property markets? These are some of the questions I'll be asking Australia's leading housing Economist, Dr Andrew Wilson chief economist of My Housing Market Our economy lifts again and posts record growth over the year Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter. After an initial "miracle" V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter. And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output. In today's podcast Dr. Andrew Wilson gives 6 reasons why he's confident about Australia's recovery. Australia dodged a recession with strong economic growth over the last year. Australia's economy (as measured by gross domestic product GDP) grew by 0.7% in the June quarter after rising by 1.9% in the March quarter. Over the year economy grew by a record 9.6% – admittedly of a pandemic and use low base. The level of the Australian dollar and the strength of our share market are a good indication of what's ahead. Unemployment levels are low, and our participation rate is high Australia's economic recovery is creating jobs. Interestingly the number of Australians working multiple jobs has never been higher, as insecure work surges. The economy is creating jobs but not necessarily the ones Australians need. The latest ABS figures have peeled back another layer on the labour market, revealing Australians are doing it far tougher than the headline number would suggest. The number of people working multiple jobs surged by 15,100 in the three months to June to its highest number on record. Over the last 12 months, the number of Australians with at least two jobs has swelled by 32.6%. Headline unemployment fell to 4.6% in July, ahead of expectations and despite lockdowns coming into force. As economists have pointed out, the 'improvement' has largely been the product of hordes of people giving up on finding work altogether, discounting them from the survey. It shows in the fact that over the month Australians worked 3 million hours less. A

Are you just starting out in property investment? What fee will you choose to pay? You're probably hoping for none. In today's show, we're going to talk about learning fees that you could end up paying as a property investor. While some are obvious and paid-up front, it can quite often be the less obvious fees how much they may cost you over the life of your investment. And if you're not looking for them, some of those fees may appear not to have a cost at all – at least not one that you discover until later. So it's important to know how to look for them. Let's take a look at two fees you should avoid and one that you shouldn't 1. The Built-In Fee Beware the shiny brochures, champagne launches, rental guarantees, slick sales offices, and other false prophecies. You are paying a fee for all of this, on top of the kickbacks and commissions for all and sundry. It is all built into the purchase price. On a $1 million purchase, that means you could be giving the developer anywhere from $50,000 - $200,000 and that should be your money- not his. 2. Opportunity Cost It can be difficult to admit that we got it wrong and easier to hold onto an asset in the hope its time will come... someday! Pride, ego, and emotion can get in the way of making a logical and rational decision. Just 1% or 2% growth better growth per annum may sound like an insignificant amount, but just look at the difference it makes over decades. The results can be gobsmacking, with the learning fee running well into the hundreds of thousands of dollars, even millions in some cases. 3. Up-Front Fee Then there is the up-front fee. The concept being that you pay someone a learning fee before you just jump in. You pay them to ensure you get efficient and effective results, in the shortest possible time frame. Your independent strategist can assess your situation and provide a solution and as a result, they are paid to help you arrive at the outcome. You'll find the most expensive advice you get is free, and the best value advice you'll get will cost but stop you from making the mistakes the average investor makes – and this is worth a fortune. 6 More Learning Fees You Don't Want To Pay as a Property Investor. The "Oops, I bought the wrong property "learning fee" Did you know that statistics show 20% of investors sell up their property in the first year and 50% in the first 5 years? So, you decide to sell within the first year or two and regardless of what price you sell the property for, you need to remember the huge costs associated with buying and selling real estate. There's the stamp duty when you bought it (plus the stamp duty for the new place), legal fees when buying and selling, selling agent commissions and marketing costs and, of course, the cost of moving twice in quick succession. This means your learning fee is likely to be tens of thousands of dollars and more when you take into account lost opportunity costs. The "capital non-growth" learning fee This is the fee that you pay when you buy an investment with poor capital growth because it's in the wrong city, suburb, or street. Perhaps it grows at 2 or 3 percent per annum when buying the right property may have achieved 6 or 7 percent capital growth – it may not seem like a lot, but adds up to more than you think. The "renovation reality" learning fee This is the learning fee that you must pay when you realize that renovations are hard work and not as easy as the reality TV shows or property blogs would suggest. This learning fee could easily cost you tens and tens of thousands of dollars as well as a waiting period of many years as you wait for the market to improve enough to get your money back. The "I got eaten by a shark" learning fee Here we have Sam and Susan, a couple of 25-year-olds who charge off to one of those investment property seminars that promise you'll make a million dollars in six months. Instead, our bright young things end up knee-deep in cash flow tables, bank documents, and a signed investment home contract that results in their off-the-plan, out-of-town, so-called whiz-bang investment property growing at a miserable 1.3 percent per annum over the next 10 years. The learning fee in this scenario is especially scary as that "shark advice" could end up being a millstone around their necks for many years. The "buying with emotion" learning fee You can end up paying this fee in 2 ways. Firstly, when you fall in love with a property and overpay. Now while this may be allowed when you buy your home, it's a big mistake for property investors. The second way you pay this fee is when you miss out on an opportunity because you have an unrealistic expectation of what the property's price is and offer well below an acceptable price. The "negotiation" learning fee This is the extra cost to you when you are too afraid or too inexperienced to negotiate on price. Many property purchasers are shark bait to real estate agents who are highly trained negotiators who are taught how to get

What's the outlook for the Australian property markets for the rest of 2021 and beyond? This is a common question people are asking now that our real estate markets are experiencing the challenges of lockdowns. However, despite a sequence of fifteen State or Territory lockdowns so far this year, property prices have been largely unscathed. And even though the rate of house price growth is slowing, property values keep rising in almost every market around the country and our capital cities are in line for strong double-digit property price growth this year. So what does an investor need to do to succeed in today's market? Some rules will be different while others will remain the same. In today's show, I'm going to chat with Brett Warren, about nine rules that you need to follow to succeed in today's property market, so welcome to today's show. Then you'll hear my mindset messages about happiness. Rules for Property Success Let's look at 9 key beliefs for property investment, no matter what point of the economic or property cycles we are in. Rule 1: Your long-term aim should be capital growth Capital growth, or capital appreciation, is simply an increase in the value of your investment over time. And this should be the ultimate goal for every property investor. Because while cash flow keeps you in the investment game, it is capital growth that gets you out of the everyday rat race. Rule 2: Demographics will drive our property markets Understanding demographics could and should be the final piece of the puzzle for you during the decision-making process. After all, we are looking for locations that can ride out a downturn and produce above-average rates of return in the good times. And Covid-19 lockdowns are accelerating this trend further as a large chunk of white-collar workers realize they can easily work remotely and neighbourhood has become more important to them than ever. Rule 3: Location, location, location Find a location where there is strong economic growth which will lead to job growth which will lead to population growth which will lead to demand for housing. Then, given the long-term trend of the rich getting richer and the widening gap between the rich and the average Australian is not going to change, you should look at wages. And you should only buy in areas where the local demographic has higher income levels so they can afford to both improve and pay more for properties. Rule 4: Remember rent affordability is linked to wages As with the above, make sure you take into account the local going rate for rent when researching an investment property. Because, as obvious as it might sound, rent affordability is linked to wages. When you eventually retire and enjoy the longest holiday of your life, your income will depend upon your tenant's ability to pay the rent. Rule 5: Focus on continued strong demand Location is one thing but buying the right type of property in the correct location is also very important. Investors should always look for a property that will be in continuous strong demand by owner-occupiers. If you can walk out of your home and you're within walking distance of, or a short trip to a great shopping strip, your favorite coffee shop, amenities, the beach, a great park, you will appreciate the benefit of the third-place – the importance of your neighborhood. Rule 6: A brand new property is like a brand new car Depending on the make and model of the car, you can lose anywhere between 10% – 15% of a new car's value disappears once you drive it off the dealership lot. And you can apply the same concept to those brand-new properties you've been looking at. So, remove the emotion of looking for something shiny and new. Rule 7: Have a financial buffer in place Always, always have a financial buffer in place to see you through the rainy days. How much you need as a buffer varies depending upon your money management skills and cash flow circumstances, but it is often wise to hold between 6 and 12 months of living expenses in an offset account. Rule 8: Be careful who you listen to Remember, as with anything, there will always be pessimists around willing to give their two cents worth of advice. And they're usually wrong. While the Property Pessimists and Negative Nellies will tell you to avoid investing in property, there will always be people who tell you to buy property, or to buy a particular type of property or in a particular area. But make sure you're wary of their hidden agenda. These people are likely to represent the seller, not you. Rule 9: Avoid negativity Similar to the above, when embarking on your property investment journey, try to avoid the negativity. Sure, the future is uncertain, Covid-19 and continued lockdowns are taking their toll on us all, closed borders are leaving many frustrated, and climbing property prices might cause a feeling of despair for some. But as the saying goes: This too shall pass. The bottom line It is always the property fundamentals that really mat

Why have you been so successful in reaching some of your goals, but not others? It turns out that even brilliant, highly accomplished people are pretty lousy when it comes to understanding why they succeed or fail. It's not as simple as you are predisposed to success because you were born with certain talents or lacking in others. That's just one small piece of the puzzle, so today we're going to discuss nine surprising things that successful people do differently from the average person in this month's Build a Business Not a Job podcast with Mark Creedon. Three Categories of Thought The question of how the wealthy think was discussed in our private Facebook Group for Business Accelerator Mastermind. This opened up some great discussions amongst our tribe that we want to share in today's podcast. There are nine thoughts we're going to discuss, and they fall into three categories. What is their internal process – how are they thinking? What is their focus? What are they doing? How successful people think They see themselves as the creator of their wealth – the creator of the circumstances. They take responsibility for their lives They are committed to the process of wealth creation – Not just interested, but continuously thinking about how their actions might produce or erode wealth. They're constantly doing the work. They think big – They think what if it were possible, how could we do it, instead of assuming things aren't possible. What Successful people focus on They manage themselves first – Their mindset, their behaviours, their attitude, their actions, their growth. They are value-driven – The wealthy understand we are living in a value exchange economy – they don't focus on price or cost; they focus on adding value to others They are net worth focused. They are focused on building a portfolio of assets – Real Estate, shares, a business that will deliver multiple income streams – a money machine that allows them to live their life without putting a lot of effort in. What Successful people are doing? They play to win - While the average Australian plays not to lose, the wealthy are playing to win They are in a constant state of self-growth - they are constantly trying to grow, improve, have a bigger impact. They run in successful circles – You should surround yourself with people that will hold you to a higher standard and help you get to the next level. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Get a heap of special reports and eBooks here- www.PodcastBonus.com.au Shownotes plus more here: Here's how the wealthy think differently from the average Australian, with Mark Creedon | Build a Business not a Job Some of our favourite quotes from the show: "The benefit of a Mastermind team is you come up with a lot more." – Michael Yardney "What you're committed to will rise to the top when you look at those actions, and what you're just interested in maybe you're not going to have achieved." – Michael Yardney "There's that third group of people who are what we say on the green line, where they're actually taking advantage of this uncertainty period to set themselves up for when we get through all this." – 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.

Who are your mentors? Who do you turn to for knowledge, to help you set goals, to help support your growth, to help you keep accountable, and to offer encouragement? It's impertinent to think that you can achieve the type of success on your own that took others decades to achieve. I guess mentors are a shortcut to success and they also stop you're going down the wrong path and point you in the right direction. Stand on the shoulders of your mentors and you'll be able to see a lot further. Despite having a very substantial property portfolio, and a very successful national business, I still have coaches and mentors in today's show I'd like to discuss with you how I got Warren Buffett as one of my mentors. I'm also going to have a chat with Brett Warren about the type of properties that could end up the equivalent of the disastrous mining towns that we saw a couple of decades ago so that you will avoid them. How I Got Warren Buffet As My Mentor I found the perfect mentor early in my investing career: Warren Buffet. In fact, Warren's been mentoring me for quite some time now and it's been inspiring. But to be honest… I've never actually spoken to him. And he's not really a property expert. But he's generously created a means for me to get inside his head and learn how he thinks about investing. We have access to his way of thinking through his annual letter to the shareholders of his company Berkshire Hathaway. One of the early lessons I learned from my mentor was: "Be greedy when others are fearful (like now) and fearful when others are greedy." Here are three lessons I took from his thoughts: Fear and greed drive our markets and cause them to cycle – all too often too far in both directions. Trying to predict these market cycles is a fool's game. As an investor, you simply need to know that these cycles keep recurring and be prepared not to overreact. WARNING: What Will Be the "Mining Town" Type Investment of This Decade? With Brett Warren I've been investing long enough, close to 50 years now, to see many fads come and go. I'm old enough to remember timeshare – the ability to buy a week or two's worth of property if you couldn't afford to buy the whole property and share the property with a bunch of other investors who simply couldn't afford to own a property. We did turn that into a disaster. Then there was the fad of investing overseas – I remember there was a time when you could buy a property in the United States for the price of a car here – 30 or $40,000. Of course, you can imagine the type of property you would buy at that price and how naïve investors lost out, but promoters made a fortune. And then there was the mining town investment fad of the late 2000s. It began in around 2003 when prices for commodities like iron ore and coal began rising, and this led to significant mining infrastructure construction causing a property boom in many mining cities and towns around the country. Property hot-spotting websites popped up and many naïve investors bought "investment" properties in places they'd never even visited. Unfortunately, when the boom ended and infrastructure spending in these tiny one-industry towns stopped, and there wasn't a requirement for tenants in these small one-industry mining towns, property prices in these locations began to free fall. So, what will it be this time around? Warning signs for inner-city high-rise apartments There are already some major warning signs that these apartment owners may face: Structural Defects – Newer high-rise apartments are not like the old "solid brick" construction blocks from the 1970s or '80s and builders now opt for cheaper products to cut costs and boost profits. Fire Issues – The inferior cladding being used is a case in point for above, with 629 buildings in Vic and nearly 450 across NSW at risk. Water Issues – While more of a nuisance, the leaking balconies, showers, and roofs can usually be fixed, but it comes at a cost. High Commissions and costs – Kickbacks, commissions, champagne sunsets, and rental guarantees are all built into the purchase price. COVID Changes COVID has also forced a host of changes, in particular closing our borders and the way we want to live. The high-rise, inner-city apartment is often in high demand from overseas investors, new arrivals, and students that come to study here. This means that many new planned projects may not have enough presale take up to even get off the ground. In Summary Will the inner-city, high-rise apartment, become the mining town type investment over the next decade? There are ample examples of structural and building issues on top of high commissions and demand for certain spaces post-COVID. Despite that, some investors and homebuyers will be drawn in by perceivably cheap prices. These types of properties are cheap for a reason and that will remain so moving forward. Resources: Michael Yardney Brett Warren – National Director Metropole Property Strategists Get the team at Metropole to help bu

To have a better lifestyle you don't actually need to earn more money, you just need to use the money you earn now in a better way. These are the words of my guest in today's podcast, Angela Santalia, who has written a book called The Money Messenger, and today you'll hear her thoughts on how to control your money and live the life you want. Now while many people listen to this podcast because they're interested in property investing, money management is a critical part of any type of investing, and especially real estate investing. You need good money management to save your first deposit and once you own a property or two, money management is even more important. And even if you don't have money problems, I think you'll enjoy my chat with Angela today as she says she has some financial strategies to become wealthier by making your money work for you. And of course, I will also be sharing my regular mindset message with you. The Money Messenger Navigating the world of personal finance can be overwhelming, yet with some smart planning, a good strategy, and an understanding of the basics you should be able to develop the money-management skills you need to get your finances under control. Angela Santalia has over two decades of experience working in the Australian Financial Planning industry as a Financial Paraplanner Strategist. Her clients are other financial planners and through her experience, she has learned a lot about money, people, and which spending habits do and don't work. Angela runs a thriving website called The Money Messenger, which features a blog, resources, tools, YouTube videos, and more where Angela shares her money management knowledge with the public. Angela was 'Young Investor of the Year' Runner Up in 2017 for Your Investment Property Magazine. Subjects Angela and I discuss: Angela's The Money Messenger blog, where she aims to get young Australians talking about money. Angela shares her own financial planning and investment experience along with tools and resources. Angela believes that young people need to learn about money because the things you do in your 20s and 30s continue to affect you in your 40s and 50s. Financial mistakes can follow you for years. Angela explains that young people may have parents that don't necessarily understand money either. Life is also very different now, with different job and life roles, different kinds of debt, and different family structures at different times Young people today also want more freedom, choice, and flexibility than their parents had. Angela recently published a new book, The Money Messenger She wrote it because she saw a problem with a lack of financial knowledge among people in their 20s and 30s. People in their 40s also like the book and wish they'd had it when they were younger. The purpose of The Money Messenger is to teach readers how to get wealthy by using their own money correctly and investing wisely Angela explains why people need more than one bank account. She also talks about the importance of paying off credit cards. According to Angela, one of the biggest complaints from millennials is that they can't save. Most other complaints stem from that main one. Angela believes that young people need a plan for the future and that they'll never have enough without investing. Resources: Michael Yardney Angela Santalia – The Money Messenger 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 www.PodcastBonus.com.au Shownotes plus more here: You can't control everything in life, but you can control your money Some of our favorite quotes from the show: "In fact, the average Australian's wealth grew more in the last year than it did during the preceding three years combined." – Michael Yardney "Part of the reason you can't save is because you've got no idea where your money's going." – Michael Yardney "The truth may hurt, but the world doesn't owe you anything." – 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 the world works its way through the confronts of the Covid related economic issues, lockdowns, and health challenges, one thing has become clear. The rich keep getting richer. They seem to do this through pandemics, through good times and bad. And this has led a lot of people to ask why? How? What do they do differently? That's what we're going to discuss in today's Rich Habits, Poor Habits episode of the Michael Yardney podcast. Even if you come here to learn about property, success or money, at the end of today's show you're going to understand some new research that Tom Corley has uncovered which should help you in your future endeavours. The Four Paths to Wealth There are four predominant paths toward accumulating wealth. The "Savers-Investors" path is the easiest, while the other three involve much more risk. The Saver-Investors path Just less than 22% of the millionaires in Tom's study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you start early, it almost always guarantees a lot of money. The Saver-Investors had four things in common: A middle-class income A low cost of living and preference for saving to save A habit of saving 20% or more of their income. An early start to investing their savings The Dreamers path This is perhaps the hardest path to building wealth because it requires the pursuit of a dream, such as starting a business, becoming a successful actor, musician, or author. Approximately 28% of the folks in Tom's study were Dreamers, and they accumulated an average net worth of $7.4 million — far more than any of the other groups — over a period of about 12 years. Those who want to take this path, however, must be willing to work long hours and able to handle financial stress. The Dreamers in my study worked more than 61 hours per week before finally achieving their dreams. Weekends and vacations were almost non-existent. The Company Climbers path Climbers are individuals who work for a big company and devote all of their energy to climbing the corporate ladder until they land a senior executive position. This is the second-hardest path to becoming a millionaire, and about 31% of the rich people I studied fell into this group. It took them an average of 22 years to accumulate a net worth of $3.4 million or more. In most cases, their wealth came from either stock compensation or a partnership share of profits. To be a Climber, you must have strong relationship-building skills. Networking and making lasting connections with powerful people in your industry are essential. The Virtuosos path Roughly 19% of the participants in Tom's study chose this path. Virtuosos are among the best at what they do in their profession. They are paid a high premium for their knowledge and expertise, which sets them apart from the competition. It took the Virtuosos in my study about 20 years to reach an average net worth of $4 million. Some worked in the medical field, while others worked in law. A handful either worked for large, publicly-held corporations, or they were small business owners with highly profitable enterprises. Links and Resources: Tom Corley - Rich Habits Michael Yardney - Metropole Get your own copy of our international bestseller Rich Habits Poor Habits Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Shownotes plus more here: You really need to understand the 4 different paths to wealth | Rich Habits, Poor Habits With Tom Corley Some of our favourite quotes from the show: "I think something we should remind people is that most millionaires weren't born that way." – Michael Yardney "Entrepreneurs often have to count their pennies carefully in the early days." – Michael Yardney "You need resilience, because you're going to have troubles, you're going to run into challenges, there are always going to be hurdles." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.

The resurgence of Covid-19 across the country is causing concern. It wasn't that long ago that we experienced minimal, or no cases of Covid around Australia and we thought we had this Coronavirus thing licked, and all of a sudden we are confronted with lockdowns, uncertainty, and everything that goes with it. As Australia's circumstances continue to rapidly evolve, many are wondering what this means for the economy and our property markets. As our property markets don't operate in isolation, to be a successful, strategic investor it's important to have a telescopic view – a big picture view of the macroeconomic factors affecting not just Australia's economy, but the world economy and that's why each month I have these Big Picture podcast chats with Pete Wargent, a lifelong student of and commentator on our economy. After that, I'll share my mindset message. The Big Picture When we recorded last month's Big Picture Podcast Australia's economic recovery was continuing to unfold, jobs kept being created and our property markets keep surging. And this month's headlines are full of concern and mixed messages. Let's look at the macroeconomic factors affecting our economy and the property markets to help gain some clarity about the future. Some of the topics that Pete and I discussed: Monetary policy is not going to change based on the current interruption to the recovery Although the new lockdowns and restrictions will have costs to the economy, the banks remain optimistic It's also expected that the current surge will be a temporary problem and that economic conditions will bounce back quickly once it's over Despite the negative news, household wealth in Australia continues to boom This is a good sign for consumer spending. Property prices have been largely unaffected by the lockdowns Property values continue to rise, even though the rate of house price growth is now slowing Renters, however, are having difficulties and facing rental stress The Federal Labor party has formally dumped its contentious negative gearing policy and dropped its opposition to the federal government's stage three tax cuts for high-income earners. The shape of the recovery is changing again. It was previously touted as a V-shaped Now, it's being described as a K-shaped recovery, with jobs in public service and big business on the risking arm of the K and tourism, hospitality, and small businesses on the falling arm. The current surge of the Delta strain of COVID has affected the recovery and may continue to cause problems. As a more significant part of the population is vaccinated, lockdowns and restrictions will become rarer The economy will continue to rebound as that happens If household wealth continues to remain high and grow, it sheds a positive light on recovery over the next 6-12 months. Resources: Metropole's Strategic Property Plan – to help both beginning and experienced investors Gets your bundle of eBooks and reports here: www.PodcastBonus.com.au Join Michael's Property Update private Facebook group by clicking here Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: The Big Picture – economic and property trends you must understand – August 2021- with Pete Wargent Some of our favourite quotes from the show: "When we get through this, the cash that we've stashed is going to help make the economy rebound." –Michael Yardney "But look how well all those people who made their decisions a year ago are doing in the property market." – Michael Yardney "Entitlement gets us nothing but heartache." – 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

Tim Ferris, #1 New York times bestselling author has written a new book - Tools of Titans. In it, he shares the tactics, routines, and habits of billionaires, icons, and world-class performers. You could read this great book which is well over 700 pages long or you may instead enjoy my chat today with Mark Creedon who will share the top seven lessons he got from this book in this month's Build a Business, Not a Job podcast. The lessons we had a chat about will be relevant for everybody and particularly if you want to succeed in life whether it's in your career, investment, your profession, or in business. 7 Takeaways from Tools of Titans Rather than reading the whopping 707 pages of Tim Ferriss's Tools of Titans, I to ask Mark Creedon, founder of Business Accelerator Mastermind and business coach to some of Australia's top business people and entrepreneurs to unpack a number of the lessons for us. Lesson number 1: You are the average of the five people you most associate with You should never underestimate the detrimental effects that your pessimistic or unambitious friends have on you. If someone isn't making you stronger, they're probably making you weaker. Ferris says that "giving your time and energy to negative people is masochistic". In a nutshell, and I'm sure you've heard it before, you are the average of the five people you most associate with. Lesson number 2: Don't wait until you're ready It's worth remembering that often, reasons come first, and answers come second as Carl Brian often says. Waiting until everything is perfect before making a big change is just a self-protection mechanism. The stars will never align, and all the traffic lights will never be green at the same time so sometimes you just have to make the hard decision to bring about change in your business, to employ that next level to help you scale out; to put systems and structures in place so that you can spend less time in your business and more time in your life. Lesson number 3: Be the best at one thing Focusing on one thing at a time and being great at it is the fastest way to scale your business. Focus on perfecting one thing at a time in your business and don't get distracted by implementing new features or new products all the time. Narrowing your focus will help you broaden the lens and see even more opportunities for success. Lesson number 4: Being in your own business doesn't have to be an all-or-nothing wager. The idea of testing a business idea for a period of time and building both confidence and cash flow makes a lot of sense. It's worth remembering that being successful at business and entrepreneurship is 90% psychological. If you can get the headspace right and you've got an idea that has "legs" then you're well on your way to success. Lesson number 5: Getting preferential treatment can come from being more assertive. You don't have to be aggressive or the biggest dog in the yard, but you do need to be clear on what you want to achieve, standing your ground on the journey to get it, and being assertive where it counts. I suggest the best way to achieve that is to work out what is negotiable and what is nonnegotiable. In your journey to business or professional practice success, there are some things worth fighting for because they are simply not negotiable and that's when you must be your most assertive. Lesson number 6: Fear is a good thing. Tim makes a great observation when he says, "what we fear doing most is usually what we most need to do." Fear is what keeps you focused and motivated. The reality is that your fears often provide you advance notice of exactly what you need to be doing more of. Lesson number 7: Success is way more possible than you think Everybody has wild dreams. The problem is that most of us think they aren't achievable. If we believe they aren't achievable then we never even try. I encourage my grandchildren to aim for the stars because as Richard Branson showed just last week, you might just hit them. It doesn't mean that becoming a wildly successful entrepreneur is easy, but it does mean that it is more possible than you might think. Links and Resources: Why not join Metropole's Business Accelerator Mastermind Learn more about Mark Creedon – Business Coach to some of Australia's leading entrepreneurs Get a copy of Mark's new book here – Have a business not a job Get a heap of special reports and eBooks here- www.PodcastBonus.com.au Shownotes plus more here: Tools of Titans – learn the tactics of Billionaires with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "It's not only the people that you deal with day to day but what you choose to learn, what you choose to read." – Michael Yardney "I think that you actually have to show respect to others and do it with integrity." – Michael Yardney "All the good stuff is just outside your comfort zone." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help n

The property industry, and investors in general, welcomed the Labor party's announcement that they won't change the rules of negative gearing if they got into power. So, is this the end of the debate? Not necessarily according to Stuart Wemyss who still has some concerns that we're going to talk about today. We'll also discuss the concept that sophisticated investors shouldn't have to jump through the same hoops that beginning investors do. Then, in my mindset message, we're going to talk about the fears that may be holding you back. Is this the beginning of the end of negative gearing despite Labor's promises? One of the aspects of finance I discuss with Stuart is negative gearing. What is negative gearing? Negative gearing allows investors to offset property investment losses against other taxable income (such as employment income) to reduce their tax liabilities. Why do people negatively gear? The only reason that you would negatively gear is that you anticipate that the property's capital growth will eventually dwarf its income losses. Is negative gearing at risk? There are three main reasons why tax benefits resulting from borrowing to invest in property will not be as substantial as they have been in the past. As such, investors should not rely on negative gearing tax benefits when making investment decisions. Reason 1: Government will probably (eventually) limit negative gearing The expansion of federal government debt to over $1 trillion dollars means the government must generate more revenue to service and eventually repay this debt. One way to do that is to grow the economy (GDP) which will generate more tax revenue, even if tax rates don't change. Another way is to raise taxes or limit deductions. Reason 2: Persistently low interest rates reduce tax savings Gross property residential rental yields typically range between 2% and 3.5%. After allowing for expenses (such as management fees, maintenance, insurances, and so on), net rental yields typically range between 1% and 2.5%. With interest-only investment rates starting at 2.5% p.a. (fixed rates), a property's pre-tax income loss can range from nil to 1.5% of a property's value (being net yield less interest rate). This means if your property is worth $1 million, your pre-tax loss probably won't exceed $15,000 p.a. Consequently, your tax benefit (savings) won't be more than $,7,050 (being 47% of the loss). Reason 3: Stage 3 tax cuts will reduce tax savings It was reported last week that the ALP will likely support the government's stage 3 tax cuts which are set to become effective in the 2024/25 financial year. This means that there will only be two tiers for taxpayers that earn in excess of $41,000: $41,001 to $200,000 = 34.5% tax rate including Medicare; and Over $200,001 = 47% tax rate including Medicare. Sophisticated Borrowers Shouldn't Have to Jump Through the Same Hoops Anyone who recently made an application to get more finance would have realized how much harder it is, how many more questions you have to answer, and how much longer it takes today. Stuart recently wrote a great article where he suggested that sophisticated, more experienced borrowers shouldn't be required to jump through the same hoops to get finance that less experienced borrowers need to. What do you mean by that? We discuss the retail versus wholesale investor rules The Corporations Act makes a distinction between wholesale and retail clients (or "sophisticated investors" if being offered bonds or direct shares). A wholesale client is someone that meets either of the below two tests: Asset test – having a net worth of over $2.5 million; or Income test – having a pre-tax income of at least $250,000 in each of the past two years. The Act also includes other exemptions in addition to the above including professional investor test, product value test, and small business test. These asset and income hurdles were struck back in 1991 and are now vastly outdated. Adjusting for the impact of inflation, the income threshold should now be over $490,000 and asset value over $4.9 million. Wholesale clients are assumed to be financially savvy enough to make informed decisions and are able to protect their own interests. In short, they can decide whether an investment is appropriate so there's less onus on the provider or advisor. Also, there are fewer obligations (on financial advisors and product issuers) when dealing with wholesale clients such as there is no need to provide a Financial Services Guide, Statement of Advice, Product Disclosure Statements, etc. The current system is broken The fact that someone with several millions of dollars in the bank is subject to the same assessment as someone with very little financial resources highlights that the current regulations are inadequate. Banks must be given a robust framework but enough discretion to operate within that framework to achieve acceptable outcomes. Distinguishing between retail and sophisticated borrowers seems to be

In a time of lockdowns, thinking 40 hours ahead is sometimes a challenge. Now try thinking 40 years ahead. Well, that's what the Federal Government has done when it recently released its fifth Intergenerational Report. It has taken a 40-year view on where we'll be in 2061 and forecasts that Australia will be older, smaller and more in debt than previous Intergenerational reports suggested. Predicting anything 40 years out is a challenge. But predicting what will happen to something as unpredictable as our economy, and the budget settings it generates, requires the most adept of crystal balls. And as with any such exercise, the predictions are completely meaningless without understanding the assumptions upon which they are based, so today I unpack this report in my regular chat with leading demographer Simon Kuestenmacher and ask him what do the findings mean for our economy and our property markets. What's ahead for Australia? Our property markets don't work in isolation – they're driven by our demographic changes and according to the latest Intergenerational Report in 40 years' time Australia will be smaller and older than previously expected after the first downward revision of official projections in an intergenerational report in 20 years. The purpose of the intergenerational report: Show everyone what Australia could look like in 40 years under the current policy settings Help treasury understand how much money it can spend Help politicians consider the long-term effects of their policies In the current intergenerational report: The Australian economy is projected to grow at a slower pace over the next 40 years than it has over the past 40 years. Real gross domestic product per person is expected to grow at an annual average of 1.5 percent The pandemic has interrupted heavy population growth. Growth has been buoyed by government stimulus, but that can't last forever. The previous Intergenerational Report in 2015 projected an Australian population of almost 40 million by 2054-55. The 2021 update projects 38.8 million by 2060-61. That's less growth, but it's still a monumental trend. City and town planners will have a lot to do in coping with the growth. This will impact property investment choices, but strategic knowledgeable investors will be well-placed to capitalize on the changing trends. In 2060-61, about 23% of the population is projected to be over 65, up from 16% at present and 13% in 2002. Health improvements suggest that older Australians will be able to remain active longer However, they'll also need to work longer to self-fund retirement. As a consequence of the low birth rate, aging population, and decline in migration, over the next decade, we will lose out on over a million people in Australia who could have added to our GDP. Resources: Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: Should we be scared by the forecasts of the 2021 Intergenerational report? With Simon Kuestenmacher Some of our favourite quotes from the show: "In the next 40 years, our population will increase by 13.3 million they're saying. In other words, increase by over 50%." – Michael Yardney "Some people would also say another way is to import these higher-skilled people from overseas." –Michael Yardney "There's a long list of people who'd rather complain than actually do something about 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

While it's not rocket science, it's not easy to research our property markets given the array of jargon and information and the many mixed messages that are out there. So, in today's podcast, I would like to chat with you about some of the many sources of research data that we look into to ensure we make good investment decisions for ourselves and our clients at Metropole. You'll hear me explain the importance of data but also how even more important is the ability to put the plethora of information into perspective, as I share with you several metrics that we look at when deciding where to invest. And just as importantly, I'm going to share with you one very commonly used data metric that most investors use but at Metropole we almost totally ignore. And I'll explain why you should also. 5 Metrics You Should Use and 1 That You Shouldn't If you're looking to assess a property's investment potential, use these 5 metrics work as a starting point. Past sales history We look at past capital growth to give us an indication of future growth potential. While past performance is obviously not a guarantee of future performance, the fundamentals rarely change. Days on market Days on Market is a measure of how long it takes to sell a typical property in a particular suburb. This statistic helps investors to identify those locations that are strengthening so they can buy before the masses and therefore make the most of the price uplift as the time on market decreases. Depth of Market What we're looking for here is an assessment of the supply vs demand balance within a particular market. This is a measure of how long it will take for the current inventory to be absorbed completely based on the current rate of monthly sales, assuming there are is no more new inventory being added to the market. Ratio of owner-occupiers to renters. While many beginning investors have their prospective tenant top of mind, an important strand of Metropole's Six Stranded Strategic Approach is to buy a property with an owner-occupier appeal. This is because owner-occupiers "make the market" and add stability to property values in those suburbs where there is a predominance of established owner-occupiers b who bought their homes many years ago and have significant equity in their properties. Above average wages growth vs state average Since property investment is a game of finance with some houses thrown in the middle, it's important to find locations where the local residents have higher disposable income than average and suburbs where wages are growing faster than the state averages; as in these locations people will be able to afford to, and usually be prepared to, pay more to buy new homes or upgrade their homes. You'll often find these suburbs are going through gentrification. Here you want to focus on the trend of how the wages growth in a particular suburb is trending against the state average. The faster at which it outpaces the state average, the better. What we don't rely on – Median prices Most beginning investors use median price growth as their guidance for suburb selection How is median calculated Be careful – observing the change in median property prices may not be as useful as you think. While median house prices are one of the most cited property market statistics as with any single measure there are some shortcomings that investors need to understand in order not to be misled with what's really happening to house price values. How is the median price calculated? The median house price is essentially the sale price of the middle home in a list of sales where the sales are arranged in order from lowest to highest price. This is different from the average, which would be the total value of all the house sales, divided by the number of homes sold. Technically speaking, the median is more accurate than the average because it is less affected by a few unusually high or low sale prices. A change in the median price does not necessarily mean a change in your property's value While median prices are a useful tool for understanding the price changes of properties that have transacted in a market, a 10% increase does not necessarily mean that your property is worth 10% more. What it does reflect, however, is activity in the market. Median prices are a more valuable indicator in some areas than in others Changes in median price statistics are more meaningful in determining property price growth in some areas than others. For instance, suburbs where many properties transact on a more regular basis will be more statistically meaningful than in areas where homes are tightly held, sell infrequently, and are significantly different from another. Different data providers measure different statistics Ever wondered why different data providers' median prices are different? That's because there are three key differences between all the providers. The data they collect, The time frames they report on – daily, monthly or quarterly The accuracy/comp

If you invest in residential property, how can you be sure that it's going to work out for you? That's what we discussed in today's show, because if you're going to borrow money to invest and take on the risk of investment you need to ensure that you're going to get wealth-producing rates of return, not just during this boom, but over the long term. Today I'm chat with Brett Warren and we give you some insights to ensure you make the most of this property cycle. To increase the probability of being a successful investor, or put it differently, to reduce the risk of being unsuccessful and ending up with only one or two properties like 92% of those you get into property investment do, you need to focus your energy on only investing in quality assets. Drivers of this boom: Low-interest rates leading to people upgrading, which creates demand Tenants upgrading to be owner occupies – first homebuyers established homeowners upgrading to better accommodation other homeowners upgrading their lifestyle to 20-minute neighborhoods or regional locations baby boomers upgrading their lifestyle moving to family-friendly apartments or townhouses rising consumer confidence pent-up demand supply versus demand demographic changes Millennials moving to family formation stage how and where we want to live – Home versus an apartment, the right neighborhoods. infrastructure improvements What's going to happen in 3 or 5 years? Property values will have risen significantly – in many cases 25 to 30% over this cycle. The economy will rebound Wages and inflation will rise The RBA will push up interest rates just a little. Property will become unaffordable for many Australians The gap between the rich and the poor average Australian will keep increasing. You have to ensure you own the right property, yet FOMO means many investors are making poor investment decisions currently and will lose out in the future. Locations where you could invest. The "established money" suburbs, where many established owner-occupiers have limited debt The aspirational suburbs that are gentrifying – where there are high-income earning Millenials The outer, cheaper, less affluent suburbs which are unlikely to gentrify in the medium term as that's not where the wealthier people want to move into and live. (Avoid these.) The problem is during this current property boom, almost all properties are increasing in value, so people who have bought the wrong properties will still think they're doing well. They won't realise their mistakes until they wake up in 5- or 10-years' time and realise the huge opportunity cost – what they have lost out on - because of owning the wrong property is in the wrong locations What Happens Next? Property prices will not continue to rise at such a rapid rate. As a part of any normal property cycle, there will also be a downturn in our property markets. But in a rising market and in the heat of the moment, this can often be forgotten. In Summary The current market tide will certainly lift our property market causing prices to rise. Some investors buying on a whim and with emotion buy into this and think that any property will likely do well in the short term. They do very little research and give into confirmation bias These investors do not understand that they are likely making a medium to long-term decision based on only the short-term outlook, instead of making the decision that will move them closer to their longer-term goal. Understanding their reason for investing and then understanding longer-term fundamental data should be a priority. Following a process is critical otherwise, you may be caught swimming naked once the tide goes out. 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 free eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: This is no ordinary property boom, where will you be when it ends With Brett Warren Some of our favorite quotes from the show: "In my mind, the intensity of this boom is a once in a generational opportunity, and it's not too late to get into the cycle." – Michael Yardney "Buying the right property now is not only going to help build your asset base but should set you up correctly to establish intergenerational wealth." – Michael Yardney "Successful people have a long term perspective. They have the ability to work hard to accomplish something which isn't achieved for a long time." – Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how

Are we heading for the biggest crash since the Great Depression? Is it just around the corner? Well according to Harry Dent, we are and it is. He is telling anyone who is prepared to listen that we are heading for a stock market crash, and the value of your house will drop by up to 40%. Today I to chat with economist Harry Dent about his views, and then Pete Wargent and I give you our thoughts on what's ahead. Now a word of warning before we get into the interview, especially for the faint hearted. There are some scary predictions made by Harry, so please listen to his whole interview and don't sell up your assets before you have my views and those of Pete Wargent. Subjects I Discussed with Harry Dent Harry is a Harvard MBA graduate, a Fortune 100 consultant, and his demographics-based approach to economic forecasting has helped him correctly predict many major economic events, including Japan's 1989 economic collapse, the 2000 dot-com bust, and the populist wave enabling Brexit and Donald Trump's election. Harry believes that an economic winter is coming that will be worse than the Great Depression. He believes that the governments are using stimulus to keep economies alive, and that this is bound to not end well. Harry's biggest surprise about COVID was how much the governments stepped up and created stimulus. He believes that the biggest sign of problems in the US is that the home sales are going down while housing prices go up. He believes that rates are artificially low because governments are printing money out of nowhere and using it to do things like buy bonds. His line in the sand is 2022, which is when he believes the lowest point will occur. Harry says that hitting the limits wall cause the bubble to explode. He says that China has the biggest bubble, and because they're Australia's biggest export, their bubble bursting will hurt Australia. Harry believes that Australians who think he doesn't understand Australia's markets just don't understand the world. He would advise people to reassess their assets and sell what they don't need. Harry explains that the upside of a burst bubble is that it will get rid of bad companies being artificially propped up and make way for new ones. Harry also discusses how he would explain his views to someone who visited his seminars and did what he suggested years ago but didn't see it work out for them. Bursting the Bubble with Pete Wargent According to Pete Wargent, we're not in a bubble, and there isn't necessarily a big explosion coming Australia is seeing record-low mortgage rates A typical response to low mortgage rates is more people getting into the housing game. More people getting into the housing game is basically what is happening right now. The current housing market is underpinned more by owner-occupiers than investors This makes a bubble less likely. Australia's government has been prudent, and there are not high levels of government debt. What's more, the interest rates are low. Australia's banking system is sound. The majority of the debt is in the hands of people who have the means to service it. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Harry Dent's newsletter: www.HarryDent.com Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: Harry Dent says Australia's property bubble will burst, but Pete Wargent bursts his bubble Some of our favourite quotes from the show: "As an investor, I believe it's important to listen to others views." – Michael Yardney "In my mind, a bubble is an economic cycle characterized by a rapid escalation in asset values, then it's followed by contraction." – Michael Yardney "From what I can see, the debt that's out there is in the hands of people who can manage 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

I hope you're taking advantage of the current property boom. I haven't seen conditions like this since the early 1970s when I first started investing. Now you won't find charts of that particular boom in the various research house statistics, because they weren't keeping those types of records in those days. Back then, the boom in property values was in part related to the very strong inflation we were experiencing, and at the time the booming markets of the early 70s and that of the late 80s and the boom of the early 2000's twenty years ago created a lot of Real Estate empires. I know the boom of the 70's got me off to a great start and the subsequent booms grew the value of my portfolio allowing me to continue growing it, but I also know there were others who invested through the various property booms who haven't had the success they hoped for. Even though initially it seems they were heading in the right direction. So, my chat with you today will be to help you understand the type of property that you should be buying at this stage of the cycle to take advantage of the current conditions that see you through for the rest of your investing life. Today's podcast will be in two parts, I'll initially give you my thoughts and then I'll have a chat with independent financial strategist financial adviser Stuart Wemyss who will share his thoughts on a big mistake he's seeing investors make – in the hope that you don't make the same mistake. Here's how to invest in our booming property markets I'm continually being asked questions like: What's the right property for this stage of the property cycle? Is this the right or wrong time to invest in property? Is it too late to invest this time round – prices have grown so much? Where's the best place to invest in 2021? First, let's take a look at what is happening. What's driving Australia's property boom? Low interest rates – Low interest rates are facilitating change from all types of prospective property buyers, many of who are starting to experience FOMO (fear of missing out) and are pushing prices higher and higher. Rising consumer confidence -- The combination of improving economic conditions, increased jobs security plus the sense that we're getting Covid under control is lifting consumer confidence, which in turn has created continued strong demand for housing. Supply versus demand – Buyers are snapping up properties faster than vendors can list them for sale at present which puts further pressure on prices. Pent-up demand – Buyer demand is particularly strong at the moment because it has been pent up for a number of years. Demographic changes – Changes in demographics, the structure of family life, and what we want out of our home also shifted during the height of pandemic lockdowns. The desire to live in a 20-minute neighborhood shone through. Fast forward 3 years - what can we expect next? If we fast forward another 3 years or so, I expect we'll find that property values have risen significantly - as much as 25-30% higher than at the beginning of this current property cycle. By then our economy will have rebounded even further, wages will have increased, and inflation will be starting to rise. This means the RBA will most likely have stepped in and raised interest rates, but only a little. Make way for a 2-tier property market When this property cycle ends, I believe we'll be left with a 2-tier property market. This is because on one hand there will be the more affluent people who will be able to afford to live in the more expensive discretionary, established money suburbs or the up-and-coming gentrifying aspirational suburbs. On the other hand, we'll have the majority of Australians who will find property unaffordable as they've only experienced slow or stagnant wage increases. This means moving forward we're likely to find see a larger percentage of Australians unable to enter the property markets as owner-occupiers and those who can get a foot on the property ladder will be flung out further and further from the center of our capital cities. The key takeaway is that if you want to ensure you end up owning the right type of property when this cycle comes to an end, you'll have to make the right investment decisions today. So where should you invest? It will be important to invest in the type of locations where not only more affluent owner-occupiers live, but where more affluent tenants will want to live because they'll be able to pay increasing rent over time. So I suggest investing in: The "established money" suburbs This is where many owner-occupiers have been living for 20, 30, or even 40 years and have "old debt", and in fact, minimal debt against their homes. The aspirational suburbs This is where higher-income earning millennials are moving to, with new money and in turn are upgrading, improving, and gentrifying these locations. Don't invest in outer suburbs Stuart recently wrote about why investing in outer suburbs is likely to lead to underperform

What does the Uber Eats app have to do with the skills shortage? What does walking down the cereal aisle in the supermarket have to do with our economy and our property markets? In today's show I chat with leading demographer Simon Kuestenmacher, who uses a number of food metaphors to help explain what's happening in our economy, so if you're a lover of food as I am, and more importantly if you're interested in the property or business, I'm sure you're going to get some great insights from my chat with Simon. I'll also share a mindset moment about failure with you. Topics that Simon and I discuss: Australia is facing a skills shortage This is happening because of low immigration. Without overseas migration, the country doesn't have enough workers to meet its needs Businesses "raided the pantry" by hiring from the pool of unemployed workers, but the pantry is nearly empty now Because skilled migrants aren't available, full employment is near Even some long-term unemployed workers have returned to the workforce But some sectors, like tourism and hospitality, are still struggling to find enough workers Competition for workers may drive some wages up However, not all businesses will be able to afford to raise wages. And in some cases, wages might not be the reason they're having trouble finding workers Australia needs to get to work on creating its own skilled workers to fill positions, since skilled migrants from overseas are unavailable This involves removing barriers to upskilling Companies will need to choose where they fall in the "cereal aisle" – expensive cereal on one side, cheaper brands on the other, and a basic brand square in the middle Resources: Michael Yardney Simon Kuestenmacher - Director of Research at The Demographics Group As our markets move forward why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors. Get a bundle of eBooks and reports www.PodcastBonus.com.au Shownotes plus more here: There's no UberJobs app to solve the problem. It's time to try something else with Simon Kuestenmacher Some of our favorite quotes from the show: "One of the ways one can have a better GDP and improve your economy is becoming more productive." – Michael Yardney "We choose to target areas where there's more skill level 1 and 2 workers, where there's more established money suburbs because that's the premium end of the Weet-Mix market." – Michael Yardney "I think failing is overrated." – 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 a better investment in today's market - apartments or houses? That's the topic of today's show. Now I could give you a simple answer, but I thought it was better to help you understand the thought process behind my decision than give you an immediate answer. Of course, I'll also be sharing my mindset message for today before the end of the show. So is it better to invest in a house or an apartment? The change to a new working and home life prompted by the COVID-19 pandemic, combined with a loss of confidence thanks to some shoddy high-rise apartment buildings during the last building boom has seen investors increasingly shy away from investing in apartments. It seems that more investors are now asking if apartments are still a good investment in the current market. Well… my response is… it depends. I remember times when apartments outperformed houses, but for the last decade or so house values have risen at more than twice the rate of units. And the current property boom widened what was already a sizeable difference in prices. Of course, historically apartments have been cheaper than houses but the gap in prices has grown particularly wide in the past year. Some apartments, especially family-friendly low-rise apartments in lifestyle neighborhoods have still performed well and are likely to remain in continuous strong demand. The Numbers of Apartment Living The 2016 Census of Population and Housing found that 10% (2,348,434) of all people in Australia spent Census night in an apartment. This meant that there was around one occupied apartment for every five occupied houses in Australia - compared with one to every seven, back in 1991. While the number of vacant rental listings has fallen significantly in Brisbane, Darwin, Perth, Adelaide, and Hobart over the past year, Sydney and Melbourne continue to bear the brunt of closed international borders that has left many inner-city apartments without tenants. Data from Domain showed Melbourne's vacancy rate sat at 4.7 percent as of February 2021 — a massive spike from the same time last year when the vacancy rate was 1.6 percent. Choosing the right neighborhood Sure, last year offices were shut and lockdowns were in place but moving forward more of us are likely to continue working flexible rosters and working at home more than ever. This means gone are the days where our 'home' was simply the place we rest our heads and enjoy some downtime between work and our social lives – the coronavirus crisis has put an end to life as we once knew it. If you can leave your home and be in short 20-minute proximity – whether that is on public transport, bike ride or walk - to a great shopping strip, your favorite coffee shop, amenities, the beach, a great park, that's the new gold standard of where people want to live. What matters in a home? And it's not just the importance of neighborhood that has shifted Australians' views. The legacy of the lockdowns and the work-from-home-movement have made many Australians reevaluate what exactly they want in the home itself. All of a sudden people were trying to find space to be able to work, study, and also relax all under one roof - and in many cases, this hasn't gone well. Prior to COVID-19 more Australians were trading space for place and were embracing apartment living, trading their backyards for balconies and courtyards in inner-city locations. Now we want more space – a zoom room, a bigger yard, and a garage that can be converted to a gym. High rise apartments: The slums of the future It's worth pointing out that while large well-located suburban medium-density apartments will make great investments increased substantially in value over the long term, many of the high-rise towers built in the last fifteen years will continue to underperform with poor, if any, capital growth in the foreseeable future. Of course, these cookie-cutter-style apartment blocks never made good investments. The sad reality is that today, in light of the many media reports of structural problems in some of these high-rise towers, there is a crisis of confidence. This sector of the property market has lost the trust of the buying public and confidence will take quite some time to restore as various stakeholders including state and local governments as well as the construction industry including building surveyors and certifiers scramble to shore up the building sector. Investors are shying away Historically, a significant volume of apartments were bought by local and overseas investors. But as I explained, now many of these investors are shying away from apartments, due to increasing concerns about vacancy rates, capital growth, and also because of COVID-19 related concerns. Highly-publicized failures and defects in high-rise apartments, such as the Opal Tower in Sydney, are also playing their part and dampening demand. But it's important for investors to remember that not all apartments can be lumped into the same category. While many new homes ar

We're well into the second half of 2021 now so it's a good time to reflect back on the year so far and then look forwards to what's ahead. Property values across our capital cities have experienced double-digit growth already this year. And despite the Covid concerns we're experiencing, there's plenty more growth to come. Clearly, buyers are still out in force – owner-occupiers, investors, and first home buyers – at a time when available supply is struggling to keep up, keeping pushes prices higher. While much of the commentary is about the micro factors – what's happening on the ground in our property markets – I like to regularly get together with property commentator Pete Wargent in these Big Picture podcasts to look at the macroeconomic factors affecting our economy and the property markets to help give you some more clarity about what the future holds so you can make better investment and business decisions. Since we spoke last month Australia's economic recovery has continued to unfold, more jobs have been created and our property markets keep surging. Australia's Property markets All our capital cities have already experienced double-digit growth this year other than Perth. Homebuyers and property investors who took a long-term view have already enjoyed significant capital growth. The higher-end, more expensive end of the market is outperforming the cheaper end. Investors are back in the market. The pace of growth will slow but property values are likely to increase another 10% this calendar year. Rental growth is slowly starting to pick up as vacancy rates fall. Australia's households just keep getting richer. Australian household wealth grew more in the last year than it did during the preceding three years combined. Much of our wealth is due to ownership of property A new report from Credit Suisse estimates as many as 1.8 million Australians are millionaires today based on net household wealth (defined as the value of financial and real assets minus debts). And over 3 million Australian adults could soon be millionaires, according to the report. A lot has to do with property and super The RBA and interest rates Governor Philip Lowe's announcement telling us that the economy is doing much better than previously forecast resulted in speculation that an interest rate increase may come sooner than expected Latest housing finance figures The value of new home lending has almost doubled since May last year. New home lending increased by 4.9% from the month prior and a whopping 95.4% or $15.90 billion from May 2020. While the value of owner-occupier lending only saw moderate month-on-month gains, investor lending has gone way up Investor lending has now hit the highest level since June 2015 with $9.13 billion of new loans in May, more than double the value in May last year when COVID was in its early stages. However, the investor surge comes at the cost of first home buyers, with the number of owner-occupier first home buyer loans dropping. While first home buyer numbers are down, the value of first home buyer lending is up, reflecting Australia's rising property prices. Jobs The jobless rate has fallen to its pre-pandemic level of 5.1 percent after the creation of 115,000 jobs in May. The underutilization rate is the lowest since February 2013. With international borders shutting out foreign labor and fuelling skills shortages in some industries, job ads at a 12-year high, and jobs vacancies soaring, the local labor market could reach full employment sooner than expected. Population Australia's population increased by 136,300 people in 2020. This was the slowest population growth since ABS records began in 1982. There were 294,400 babies born in Australia last year, the fewest births in 13 years. And there were 161,400 deaths in the past year down by 3.4% over the previous year. Over the next 40 years, Australia's population is expected to age and become smaller than expected. Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Get your bundle of eBooks and reports here: www.PodcastBonus.com.au Join Michael's Property Update private Facebook group by clicking here Pete Wargent Next Level Wealth Pete Wargent's new book Low Rates High Returns Shownotes plus more here: The Big Picture | Economic & property trends you must understand – July. With Pete Wargent Some of our favourite quotes from the show: "The markets turned in October last year, and they've gone gangbusters ever since." – Michael Yardney "We've never had as many first homebuyers, so housing is affordable. Maybe not right in the centre of Sydney or Melbourne, but there are still opportunities." – Michael Yardney "I can see an employment rate with possibly even a 4 in front of it, 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

My special guest for today's show is Robert Kiyosaki of Rich Dad Poor Dad fame. I spoke with Robert on my podcast last year at the beginning of Covid when he warned Australians about the challenges for our economy ahead and the opportunities that he felt would come at the other side of the downturn. Now I didn't agree with everything he said, but I respect that he has taught not only me, but millions and millions of people about the basics of financial literacy, so I was keen to hear his opinions. Fortunately, Robert's dire predictions didn't come to pass, so I was pleased when he reached out to me again recently to be on my podcast so I could ask him what the biggest surprise was for him over the last 12 months. You'll hear how Robert's teachings challenge conventional thinking about money and he suggests that you should be doing what the 99% are not doing. You'll hear Robert speak positively about Australia's opportunities, but you may be shocked by some of his predictions of what will happen before these opportunities arise. As I said, I don't agree with all of Robert's thoughts, his ideas about real estate, and his forecasts for what's ahead for the economy, but rather than debating him, I gave him the airtime he deserved, and then after our chat, I'll share my views. So don't panic if you hear some of Robert's extreme thoughts, but please listen to the whole show including my thoughts, and then you'll have both sides of the discussion argument to make your decisions on. My Chat with Robert Kiyosaki For many years Robert Kiyosaki has been one of the most respected voices in the world on growing wealth. He is best known as the author of Rich Dad Poor Dad which is the #1 personal finance book of all time and Robert has challenged the way tens of millions of people around the world think about money. Some of the topics Robert and I discuss: Robert's background and credentials What surprised Robert over the past 12 months He believes the United States is desperate and dumping money straight into the economy, rather than through the banking system Why real estate is Robert's preferred investment vehicle He likes being able to use debt to buy real estate and lower tax obligations He believes that his concepts are applicable to Australia as well as the US because he's made money in Australia using his concepts Robert's investment philosophy hinges on self-education rather than trusting the government Robert's explanation of his Cash Flow Quadrant The Quadrant uses the letters are "E", "S", "B" and "I". "E" stands for Employee. "S" stands for Self- employed or Small business. "B" stands for Big Business and "I" stands for Investors. Why Robert believes that the world's biggest financial crash is on the horizon He believes that we're in a bubble because the US has been printing money instead of fixing mistakes He does not believe the bubble is likely to deflate slowly Robert believes that it's difficult to know what will cause the bubble to burst, but that it will probably be something small added on to a pile-up of things He believes that Australians should not be complacent about their susceptibility to a bubble Robert also believes that a home is not an asset This is because he believes that assets bring in cash, while liabilities cost money, and a home costs money Robert will be doing a live event with Harry Dent while he will explain more about what he believes will happen and what opportunities will arise from it. My response to Robert's thoughts In the show I give you an alternative view on 2 of Roberts assertions: What's in store for our economy and His concept of what makes a good property investment. Property. Robert clearly knows a lot about United States Real Estate – where the rules are very different, the tax regime is very different, the markets are very different and the way to invest is very different to Australia. In fact, if I think about it the way I would invest in real estate in New Zealand is very different from how I would invest in Australia even though our countries and economies are more similar than Australia and the USA. Our property markets are underpinned by the fact the 10.6 million properties around Australia are in general owned by homeowners – in fact, 70% are owned by homeowners and half of these homeowners don't have a mortgage against that property. And for the other half that do you have a mortgage, many of them are ahead in their payments while others are using the mortgage to support the purchases of investment properties. There is not a real property debt problem in Australia. How I see it is that the way you get income from your investment properties is in 4 ways. Capital Growth Rental returns tax benefits Accelerated/ manufactured growth. Unfortunately, too many people look for cash flow from their residential real estate investments in Australia and that's just not how it works. Our economy When I spoke with Robert last year, he was concerned that Australia would fall