Property Investment & Wealth Creation Australia | The Michael Yardney Podcast

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

One of the most difficult aspects of being a property investor comes from the fact that we have competing emotions depending on where you are in the property cycle. There's fear and greed, overconfidence and loss aversion, panic and euphoria. We're told there's nothing more important than being disciplined when getting involved in property and investment, but it's not easy when the emotions hang in there. One of them is fear of missing out, like a lot of people are currently experiencing as they feel the market is moving faster than they can get in. And there there's fear of getting in, which a lot of people were experiencing last year when people were talking about property Armageddon. So today I have two segments: the first one a chat with property researcher John Lindeman and we have a little bit of a general chat about FOMO and what you should watch out for. Then I'll share the ten FOMO mistakes I'm seeing many property investors make, to ensure that you don't make them as well. So, today's podcast will be useful for you whether you're looking to get into property or you're already in property anyway, because as we go through these things, there are a couple of great fundamentals and lessons I'd like you to know. Some of the Topics John Lindeman and I Chat About: FOMO is an emotionally based desire. We don't want to miss out on something someone else has. It's similar to greed. You have to respect the market. When things settle down, some people will find they bought the wrong property or overpaid. FOMO can move a boom to a bubble when too many investors become involved. That's why it's better to buy in areas that are mostly owner-occupiers. There will always be another opportunity, so buy with your head, not your heart. Big FOMO mistakes John Lindeman currently sees: Emotion that takes over decision-making. Finding it difficult to wait. Have rules that can help you rationally you decide which property to buy so that emotion doesn't take over. 10 FOMO Mistakes Not really understanding the nature of the property cycle You need to remember that the property market always moves in cycles. So after a boom, you will see a downturn. Acting with heart and not head Allowing your emotions to cloud your judgment means you are more likely to over-capitalize on your purchase, rather than negotiating the best possible price and outcome for your investment goals. Diving in or Dithering FOMO causes some investors to act too impulsively, while others freeze up out of too much caution and never act at all. Not adhering to their property strategy Successful wealth creation through real estate requires you to set goals, determining where you want to end up, and then devising a cohesive plan to get there. Changing their investment strategy. If your aim is to gain financial freedom through property investment this is a critical time to stick to a proven strategy. Speculation over Patience Property investment is not a get-rich-quick scheme. Doing it successfully requires patience. Not having a finance strategy. Strategic property investors have a finance plan to allow them, not just to buy one property but the next and the next. Compromising on Location A property's location will do 80% of the heavy lifting when it comes to capital growth, so don't compromise on it. Taking advice from the wrong people You should take advice, but from proven experts, not just anyone with an opinion. Buying the wrong property Don't make a snap decision on the wrong property. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us John Lindeman – Lindeman Reports Get our special bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: Warning – Avoid these FOMO errors investors make in a hot property market; with John Lindeman Some of our favourite quotes from the show: "It's owner-occupiers that basically create the markets, about 70% of purchases, and it's investors who push it up to its heights - the booms, and even sometimes the bubbles and then also create the slumps" – Michael Yardney "Currently I'm seeing some buyers so worried the market is going to pass them by that they're compromising their selection criteria just to get in the market." – Michael Yardney "By approaching property investment with patience and persistence, you will gain far more success and wealth than if you seek out the next big thing." – 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 heard me say it before - property investment is a game of finance with some houses thrown in the middle. But the rules of the game are changing in front of our eyes, so today I'd like to explain what's going on with lending, so you have a better chance of the banks saying "yes" to you and lending you more money, with leading finance strategist Andrew Mirams, director of Intuitive finance. I plan to ask him a number of the common finance questions we're asked when clients come to see us at Metropole, but I'm also going to ask Andrew some of the questions you probably wouldn't even think of asking but are important to know the answers to in today's financial climate, so that at the end of today so you'll have a better understanding of how to approach the game of property finance. The changing game of property finance with Andrew Mirams What's actually happening in the world of finance? Are the banks open for business? The banks are always open for business. They've actually been pretty good through the pandemic. They're working on more responsible lending. Are they still talking about loosening the purse strings a bit? Lending restrictions have been over the top a little bit and probably needs more scrutiny. Why is it taking longer to get preapprovals? Applications to banks have gone up a lot mostly due to first-home buyers and now investors are coming back as well. Also, lots of workforces are offshore We discuss some preapproval conditions borrowers need to understand It's important to understand where banks are willing to lend – they restrict lending for certain postcodes and types of property Bank loan officers don't necessarily understand business. You can't go to a bank to get property advice The right time to invest is when it's right for you Interest rates are important, but the right loan rate is more important. Online lenders aren't necessarily the right answer. A finance strategy is much more than an interest rate or fees. Banks are looking at your serviceability as much as your equity. Loan insurance can entice banks to increase the loan, but it protects the bank, not you, and loan insurance costs. So, you have to find a sweet spot that gives you the amount you need without paying too much for the loan. 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 Andrew Mirams Director Intuitive Finance Shownotes plus more here: Understanding the changing game of property finance with Andrew Mirams Some of our favorite quotes from the show: "I believe it's important to have a preapproval in place before you go out into the market." – Michael Yardney "I don't think you should assume the bank is on your side." – Michael Yardney "If you do the easy things now, you're going to have a hard life later; if you do the hard things now, you're going to have an easy life later." – 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

We're halfway through 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, in all capitals other than one. And despite the Covid concerns we're experiencing, there's plenty more growth to come. The surge in property value has caused the property bears to go back in their caves and hibernate and our major banks have done an about-face and are now forecasting 20% to 30% rises in property values around Australia this cycle with strong growth continuing for some time. And the economic Armageddon predicted by some didn't eventuate and we didn't fall off the assorted cliffs that were meant to litter our path along the way. So, in today's podcast, I'm going to have a chat with Australia's leading economist, Dr. Andrew Wilson, as we look back on what's happened to price growth so far and give you some thoughts on what's ahead. This year's property growth and what's ahead No one would have predicted the unprecedented record-breaking levels of high house price growth in the first half of 2021. The outstanding performer so far this year has been the Sydney property market where house values have increased 17.8% this year alone. In fact, Sydney home values have increased 24.2% in the last 12 months. Sydney apartment values also increased, but not as much - increasing 7.3% in the last six months and 9% in the full year. Over the six months of 2021 so far: Melbourne property values have increased 11.8% Brisbane values were up 10.7% Adelaide values rose by 10.4% Perth values increased by 8.1% Now it's important to remember the capital city of values set their previous records in September 2017 and today values are only around 10% higher than previous records. In other words, the market did but it always does, operate cyclically with periods of flat or no growth and even periods with property values drop. How FOMO Affects the Markets The other critical factor, of course, is fear of missing out (FOMO), a self-fulfilling cycle where those yet to buy in are motivated to do so by the prospect of having to pay more to do so at a future date. None of these factors look likely to change over the rest of 2021, and it's likely that house prices could rise by another 10% before the end of next year. Of course, this is just average price growth, and the upper end of our property markets are outperforming cheaper properties, and for the last month, capital cities are outperforming regional Australia which performed strongly during the Covid lockdowns last year. In due course, the property markets will slow down as affordability becomes an issue for some homebuyers and investors. Regulation appears to be imminent. Historically, surging house prices have tended to lead to a deterioration in lending standards and risks to financial stability, giving regulators impetus to tap on the brakes. The RBA has given fairly strong indications that they won't use monetary policy to this end, at least not yet, so expectations are instead that they and APRA will look to macroprudential controls such as increased interest rate buffers, and limits on high loan-to-valuation and high debt-to-income ratio lending. Government stimulus measures will continue to be wound back. HomeBuilder, a major driving force for the market through the pandemic, has now ended, and smaller state housing incentives may also be retired over the coming months. More broadly, the indirect influence of fiscal latitude will gradually be reduced as governments seek to move their budgets back towards balance. Low immigration will continue to be a drag. Restrictions on migration have cut underlying demand for housing by around 100,000 dwellings (nearly 50%) this year, and this is one outage caused by the pandemic that won't be switched back on overnight. Even with a vaccinated population, borders will probably be opened gradually with quarantine requirements remaining in place for some or most arrivals. Immigration will recover slowly. But currently, with the lack of new apartment construction it's likely we will have a looming undersupply of apartments once our borders are open. In my chat with Dr. Andrew Wilson as we discuss how despite the doomsayers' dire predictions our housing markets remained resilient last year, but growth was stifled by lack of consumer sentiment The markets turned in October 2020 and have gone gangbusters over the first half of 2021 Those who heeded the negative nellies lost out, while home buyers and property investors who took a long term view have already enjoyed significant capital growth. Listen as we discuss how each state government introduced their own set of temporary measures to stabilise the rental markets, prevent evictions and support tenants in hardship. Rental vacancies in our big capital city CBD's spiked due to the lack of overseas students, no overseas tourists using Airbnb and decreased local

When planning to invest in property, people tend to think about "where should I buy, what should I buy, how much can I afford?" But often they don't think about "who should I ask for advice?" Since investing in property is a significant financial and personal decision, it's really important to make wise decisions, and it's really important to get good advice early in the piece, because getting it wrong can result in significant financial loss, emotional stress, and a huge lost opportunity. And if you're in the middle of your property investment journey, it's still critical to ask for advice to make sure you're heading in the right direction. So, who do you ask for advice? And with so many mixed messages and vested interests out there, who can you really trust? Well, that's the topic I discuss today with Brett Warren, National Director of Metropole Properties and I hope at the end of the today's show, you'll have more clarity in your options and who you can ask for advice, and what you can and can't expect from your advisors. And of course, I will also share my regular mindset message with you. Who Do You Ask for Property Advice? Our property markets are booming at present but we know that now all markets will perform the same over the long term. So as a property investor who do you turn to when looking for advice? A better question may be - with so many mixed messages and vested interests, who can you really trust? Who investors could turn to for property advice: No One— many beginning investors make this mistake. They think they already understand the market. Friends or family— People do this for understandable reasons, but unless you have millionaires in your family, it's probably a bad idea. A real estate agent— It's important to remember, agents work for the vendor selling the property, not you. A mortgage broker— Brokers are helpful in the finance areas, but not experts on investment-grade properties An accountant— You should talk to an accountant! But about things like tax matters and structuring, not the property market. Financial planners— Financial planners sell financial products, but most are not able to advise on real estate. A property marketer— These are salespeople who really selling "product" for a property developer who is most likely going to make the biggest profit out of the deal. Investment seminars and workshops— Is the person leading the seminars an actual expert who made their money in the market? Or do they only make money by teaching others? It's an important question. A property mentor —It's important to have mentors. Just be careful who you choose and ensure they have achieved the results you want to achieve. A buyer's agent— These can be a great help in selecting the right property, but they don't devise a plan that takes into account your family's future needs and your risk profile. A property strategist – Someone who can help you grow, protect and pass on your wealth using property as a vehicle. What a good property strategist can do for you: Get to know their clients' hopes and fears to help them achieve their long-term financial goals. Help remove his client's anxiety by simplifying the complex. Develop a long-term relationship with the client and help them see several steps ahead. Recommend proven strategies that have always worked. Offer a list of potential property options and refer their clients to a buyer's agent who is part of their team. Help their clients select an investment property that is the highest and best use of their funds. Help clients avoid big mistakes. Provide perspective, insights, and often optimism. They will also advise their clients to invest their money the way they do themselves. Regularly and objectively assess the performance of their property portfolio Some things a property advisor can't really do: Predict the future. Find the next hot spot for you. Pick the best time to purchase an investment property. 4. Help you get rich quickly or achieve extraordinarily high returns without taking on extra risks. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get your bundle of eBooks and Reports at: www.PodcastBonus.com.au Brett Warren – Director of Metropole Property Strategists Shownotes plus more here: The right and wrong people to ask for property investment advice with Brett Warren Some of our favourite quotes from the show: "Many beginning investors think they understand real estate because they've lived in a house, they've rented a house, they've rented an apartment." – Michael Yardney "In my mind, it is critical to have a trusted advisor when making property decisions. It's just too hard to do it on your own." – Michael Yardney "A property advisor should actually be part of your long-term journey. It's a long-term relationship." –Michael Yardney PLEASE LEAVE US A REVIEW Reviews are hugely important to me because they help new people discover this podcast.

The Australian housing market is going gangbusters and all the signs are the boom is here to stay for some time. But how do you profit from this current growth cycle? In today's podcast, I discuss 6 property trends that you're going to see – and hopefully take advantage of – in 2021. Then, in the second half of the podcast, I chat with property researcher John Lindeman, who will teach us how to profit from this stage of the growth cycle, because if history repeats itself, lots of investors will unfortunately lose money instead of profiting. My aim is to ensure that at the end of this episode you'll have more direction and certainty to take advantage of our property markets over the coming year. 6 Property Trends to Look for in 2021 Demand from Homebuyers Will Remain Strong: People have saved money, borrowing costs are lower than they've ever been, and interest rates won't rise for a while. Plus, COVID is under control. These factors will inspire more people to buy and FOMO will continue to drive homebuyers into the market. Investors Will Eventually Squeeze Out Homebuyers: Increased competition and rising property values will edge out first-time homebuyers as more investors get into the market. Property Prices Will Continue to Increase: Consumer confidence, low interest rates, economic growth, and a favorable supply and demand ratio will all help drive property values. However, some segments of the market will continue to struggle. Buyers Will Pay a Premium for the Right Neighborhood: People want 20-minute neighborhoods, with the ability to live, work, and play all within a short distance of each other. And buyers will be willing to pay more to get that. Expensive Properties will Outperform: Higher-end properties are leading the way in growth. Upgrading Will Be Common in 2021: After lockdown, small apartments will seem to confine, and people who a deposit by not traveling or spending much on entertainment during the quarantine will be eager to upgrade to a bigger and better place, especially given the ease of borrowing money. How to profit from this growth cycle Profiting from this growth cycle isn't as easy as it seems. Property researcher John Lindeman reminds us of Warren Buffet's famous two rules that all investors must follow if they want to ensure their success. The first rule is never to lose money and the second rule is never to forget the first rule. But if history repeats itself, some investors will lose money even though overall our property markets are booming, Today, John Lindeman and I discuss the things you need to know in order to profit instead of losing money. Subjects John Lindeman and I discussed today: Investors need to make sure they're buying in markets where the growth is yet to come. You can't measure growth by the length of time that price growth has been occurring or the amount of growth that has taken place. Growth is revealed by the types of buyers creating the demand. First home buyers, upgraders, downsizers, and investors have different motives and limits when it comes to buying property If we know which group is doing most of the buying, we can estimate when the growth is likely to end Investors are motivated by profit. Owner-occupiers are motivated by affordability In the current market, most buyer demand is being generated by owner-occupiers, not investors Investors can take advantage by buying property in areas that have not yet experienced growth but have the potential to. As first-time homebuyers reach affordability ceilings are reached and their growth slows down, growth will ripple to more affluent areas as upgraders take advantage of the market. So far, not much of this has happened yet. However, this means that suburbs in desirable locations are likely to be next to rise In general, it's better to be in an area that's going to be stable. You also want an area that's in continuous demand. Capital growth has been stronger in the CBD and flattened out the further away you get from the CBD. It was predicted that a lot of people would move to the country post-lockdown, but that hasn't panned out. Once the pandemic and the lockdowns passed, people realized they didn't really want to relocate to the country and away from their work, family, and friends. Many banks, economists, and other analysts get their forecasts wrong last year. They looked at historical events like the Great Depression and the Global Financial Crisis, saw those caused property markets to slump, and assumed the pandemic would have a similar effect. That assumption was incorrect. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us John Lindeman – Lindeman Reports Get our special bundle of eBooks and reports at www.PodcastBonus.com.au Shownotes plus more here: How to Profit from 6 Growth Trends in 2021, with John Lindeman Some of our favorite quotes from the show: "If Coronavirus has taught us anything, it was the import

No one likes to fail. In fact, most people would do almost anything to avoid failure. So, do you want to know the real secret to success? It is not dedication, commitment, hard work, smart work, passion, or even habits. You're not going to like the answer. I've heard it said that the real secret to success is managing your failures. In this episode, we'll take a look at some of the lessons we can learn from failure. Failure teaches you that success is never guaranteed. Like Winston Churchill once said, success is moving from failure to failure without loss of enthusiasm. Failure isn't final. Failures happen, but they're no reason not to start again. Successful people have lots of failures on the road to their successes This too shall pass. Failure isn't fun, but it's also not permanent. No matter how much it stings at first, you can move past it. Failure forces you to embrace change. When you go through failure, this is basically the universe telling you that there is something you should be doing differently. Failure can be a great source of motivation. For people with the right mindset, failure can be a great source of motivation. Failure teaches you to stay humble. Failure isn't unique. Everyone experiences failure, even the most successful people you know of. Criticism doesn't equal judgment. Time is the greatest teacher. Rejection is a powerful tool. You can learn valuable lessons from failure. Failure teaches: Creativity. If you fail by taking a route traditionally associated with success, you might have to embark on a novel path when you try again. Who to trust. When someone – even a friend or family member who you thought you could trust – plays a role in your failure, you learn not to trust them so readily in the future. Value. Failure is a chance to take another look at your value and how you can best present it. You to listen to yourself. Tune out any non-constructive, negative feedback that comes from failing and focus on building self-trust. Over time, failure can build resilience, which is why the pain is a little less each time it occurs. What to do better next time. If you can identify the steps that led to your failure and why they had the results they did, you can form a strategy for future success. 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: 10 great lessons successful people have learned from failure with Mark Creedon | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "I've often said I'm a real success at failure, but it really does come down to resilience." – Michael Yardney "If you get it right first time as a property investor, you probably think you're smarter than you are." –Michael Yardney "Successful people revel in other's success." – 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.

For Australians, real estate is something of a national obsession. That's understandable given our home is often the biggest investment most of us will ever make. I've been investing in residential property for almost 50 years now, and throughout those decades there have been doomsayers and scaremongers claiming the Australian property market was a bubble waiting to burst. Reputations were staked on it, bets have been made and the media has offered these property pessimists more than their fair share of air time. Yet the crash never arrived. Instead, our property markets are booming with a number of capital cities already exhibiting double-digit capital growth this year. And Australia's economic growth has also confounded the pessimists as we experienced the "V-shaped" recovery that, to be honest, very few expected. 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. The Big Picture with Pete Wargent Since last month Australia's economic recovery has continued to unfold, more jobs have been created, and the property market continues to grow. Australia's economy recovery The latest GDP figures show that Australia has enjoyed a V shape recovery, though that's ancient news now. Our economic output is now higher than it was before the COVID-19 recession hit, with easy monetary policy, booming commodity prices, demand for resources from the rampant Chinese economy and fiscal policy stimulus all playing a part. The public service is doing okay while the private sector has borne the brunt of the Covid 'recession'. Australia's robust economic recovery has merited an upgrade to a "stable" footing from ratings agency S&P Global. This has been matched by enthusiastic bets on interest rate hikes. As the Reserve Bank of Australia's July meeting approaches, when the central bank will review its quantitative easing program. The Reserve Bank at this month's meeting reiterated its position that the cash rate is "unlikely" to rise until 2024 at the earliest. Biggest lift in business investment in 9 years New business investment (spending on buildings and equipment) rose by 6.3% in the March quarter. This together with the strong construction industry points to strong overall economic growth. Why jobs confidence is a big deal Policymakers are pushing hard for a strong improvement that will see a return to 'full employment that brings an end to the persistently low wages growth that has held the economy back over the last decade. There are important implications from Aussies feeling secure about their jobs: Catalyst for spending Additional support for housing demand Budget deficit The economy is in better shape than expected around six months ago and therefore so is our budget. This gives the government options to provide more assistance to have individuals and businesses. The recovery has led to a 4% improvement in the deficit so far this year. Why Australia needs higher-paid migrant workers Recently the Grattan Institute released a report into Australia's migration policy suggesting we focus on increasing the number of young skilled workers, rather than the government's current emphasis on older less-skilled migrants. Grattan suggested this would help boost the economy by as much as $9 billion 8th consecutive current account surplus In the March quarter, the current account surplus widened to 18,300,000 representing 3.5% of GDP. This is the largest surplus on record matching to 3.5 achieved in June 2020. Who needs China when Australia's got Tesla: Why do we need China when we have companies such as Tesla knocking at our door? And don't let Elon Musk's often 'loopy' and weird behaviour distract you! Tesla is a business with a huge future, being a first adopter of the electric car and the biggest proponent of big batteries as an alternative to the power delivered from the grid. A Tesla electric vehicle (EV) has $5,000 worth of minerals and metals in it and Australia supplies 75% of the lithium and 33% of the nickel in these Tesla cars of the future. 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 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 – June. With Pete Wargent Some of our favorite quotes from the show: "I guess it's fair to say it's probably always been about jobs, but at the moment, the focus is on our labour markets." – Michael Yardney "We've actually got big war chests, and the more comfortable we feel about our

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

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

You're guaranteed two things 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 everyone wants to pay less come tax time, in today's podcast I chat with independent financial advisor Stuart Wemyss about what options are available to you. Minimizing Your Tax Tax isn't necessarily a bad thing. If you're paying tax, it means that you are making money. But of course, there's no need to pay any more than you legally have to. Minimize your risk Stick within the letter of the law, but explore legitimate ways to minimize tax liabilities Many more aggressive tax minimizing measures delay tax rather than permanently reduce it Implementing these strategies may create costs (tax advice fees and documentation) and complexities Sometimes, it's better to keep things simple Minimize tax pre-retirement Personal exertion income earners have few avenues to minimize tax You can use negative gearing and/or contribute into super, but that's about it Contribute to your super After 1 July 2021, individuals can contribute up to $27,500 per year into super and claim a tax deduction for this expense Borrow to invest Borrowing to invest (to generate capital growth) often makes good sense, especially if you are more than 10 years from retirement Minimize tax on investment returns If there are not many avenues to reduce the amount of tax you pay on your income, then at least make sure you don't pay too much tax on your investment returns. Invest in assets that generate more capital growth than income Make sure the investments are owned in the most tax-effective way Minimize land tax Map out a plan and follow expert advice to minimize land tax as much as possible Consider capital gains tax Self-employment gives you more options Make sure that your business is structured correctly Stuart's new podcast, The Holistic Accountant, is a good way to learn more about this You should aim to pay zero tax in retirement A couple can have up to $3.4 million invested in super, and not pay any tax If you plan well, it is a reasonable expectation to pay little to no tax in retirement If you can't save tax, focus on investment returns If you earn money, it's likely you will have to pay your fair share of tax. That's life Cheating is never worth it The ATO is cracking down on dodgy deductions and the penalties can be up to double the tax plus interest Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Shownotes plus more here: How to Minimize Tax – Your Largest Expense, with Stuart Wemyss Some of our favourite quotes from the show: "Tax isn't necessarily a bad thing. No one likes paying it, but if you're paying it, I guess it means you're making money." – Michael Yardney "If you're going to own a property investment business, you should actually own the best assets you can in best locations you can, and land tax unfortunately is a cost of doing business." – Michael Yardney "Those who invest in their abilities their entire lives, they become the beneficiaries of luck." – 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 a year it's been. This time last year Australia was heading into its first recession and deepest recession in decades. Yet last week the Australian Bureau of Statistics confirmed the strength of Australia's economic rebound. It was the fastest economic recovery from a recession in 45 years. In fact, we are one of only three countries where our economy is ahead of where it was at the beginning of the coronavirus pandemic, but today can race and I unpack the statistics and explain what's going on – the truth behind Australia's economic recovery. But don't worry if you're not into economics, my chat today with Ken Raiss, Australia's leading property tax strategist, will be in plain English and we'll unpack what's going on so you understand what's ahead- both the good and some of the headwinds that may slow us down, so that you'll be able to make a better-informed investment, and financial, and business decisions. What you'll be hearing today is a portion of a private webinar we conducted for the attendees of Wealth Retreat to give them some insight before they join us, and while you won't be able to see the slides, I'm sure our description will be sufficient for you to get benefit from our chat. Australia's impressive economic recovery from the COVID-19 recession was confirmed with the strong 1.8 percent rise in March quarter GDP. This followed unprecedented growth of 3.2 percent in the December quarter and 3.5 percent in the September quarter of 2020. Our economic output is now higher than it was before the COVID-19 recession hit, with easy monetary policy, booming commodity prices, demand for resources from the rampant Chinese economy, and fiscal policy stimulus all playing a part. Back in the first three months of this year when we had JobKeeper, enhanced unemployment benefits, and no lockdowns and Australia roared out of recession. The GDP figures released at the beginning of June, which were for the first quarter of the year up til the end of March were for the months leading up to the end of JobKeeper. Australians spent, earned, and produced an impressive 1.8% more than in three months to December, which was itself more 3.2% more than the three months to September, which was itself 3.5% more than the three months before that. Our growth of more than 8% was the most over three quarters since 1968. But it followed a collapse in gross domestic product of 7% – by far the worst since the Bureau of Statistics began compiling records in 1959. The net result over the year to March growth of 1.1%, an extraordinary result which means that, at least until Victoria's (just extended) lockdown, we were producing, earning, and spending more than before the COVID recession. I today's podcast Ken and I discuss: what GDP is and why so much fuss is made about it Why I think that having a single overriding 'economic' health measure such as GDP is flawed What's happening to unemployment, job growth, business, and private expenditure. Here are 7 reasons to be optimistic about the future. Covid vaccines will help in underpinning reopening and recovery Global growth is recovering rapidly — driven by vaccines enabling reopening, monetary and fiscal stimulus, and pent-up demand. Growth in consumer spending is well supported Dwelling investment will provide a strong contribution to growth — the surge in building approvals points to more upside in housing construction this year. Business investment is strengthening - — investment plans for the next financial year are up nearly 15% on plans for a year ago which is consistent with high levels of business confidence, excess corporate cash, and the instant asset write-off tax break. Fiscal stimulus will continue Monetary policy will remain easy However, there are some headwinds. Economic growth should continue this year and then could slow next year as some headwinds are revealed, the effects of the fiscal measures start to fade, and the housing market slows down a little. further coronavirus outbreaks economic ramifications of the international border closure, the potential for further lockdowns due to the slow vaccine rollout, and the geopolitical risks emanating from Australia's "strained" relationship with China. Resources: Michael Yardney Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us Get your bundle of eBooks and Reports at: www.PodcastBonus.com.au Ken Raiss – Director of Metropole Wealth Advisory Shownotes plus more here: The Truth Behind Australia's Economic Recovery with Ken Raiss

What's ahead for our property markets for the rest of 2021? That's a common question being asked now that our property markets have been booming for quite some time. And that's the question I'm going to ask Dr Andrew Wilson, Australia's leading housing economist in today's show. You'll also hear his thoughts on what's ahead for the rental markets, is inflation on the rebound and should we be locking in on interest rates with the speculation that interest rates are going to rise? Now you probably know that every week I record a Property Insiders video with Dr Wilson where we give you our thoughts and commentary on the property market and our economy, and today's podcast is the audio of last week video show. You'll hear Dr Wilson and I explain how our property markets have been bounding along this year. 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. In fact, a number of capital city property markets are already showing double-digit capital growth this year. Listen in as we discuss: What's ahead for our property markets for the balance of this year. What happening in our auction markets as they give a good "in time indicator" of what's happening on the ground. How our rental markets have turned around and vacancies are falling causing rents to rise. Why Dr Wilson doesn't believe we'll get sufficiently high inflation to raise interest rates for some time, and… Why some banks are recommending customers lock in their interest rates and why he doesn't think it's a good idea. Resources: Guest: Dr. Andrew Wilson, chief economist of My Housing Market Metropole's Strategic Property Plan – to help both beginning and experienced investors Subscribe to my weekly Property Insider video with Dr Andrew Wilson here- www.PropertyInsiders.info Collect your bundle of eBooks and reports- www.PodcastBonus.com.au Shownotes plus more here: Now what next for our property markets? With Dr. Andrew Wilson 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

Why don't most property investors succeed, especially since there's so much information out there and so many people willing to help them? Well, today I've got three separate segments that are going to help you understand why many investors don't succeed, but of course, the intention of that is to even the odds in your favour, to make sure you do succeed. I'm going to share with you probably the worst investment mistake I made, but it turned out to be one of the best investment lessons I made. It was a mistake I made early in my career when I lost 100% of my equity. Boy was it an expensive mistake and a blow to my ego. I guess it shows that I didn't start off as a successful investor. There are some lessons in that alone. I'm also going to share with you a discussion I had with Joseph my hairdresser who learned how to invest like the pros. Isn't that something that you'd like to know? Then, in my mindset moment, I'll help you understand that I'm a real success at failure. So lots about success and failure in today's show, but the intention of it is to make you a more successful property investor and more successful in all areas of your life. How to Invest Like the Pros I was having my hair cut the other day when Joseph, my barber, said, "Michael — I'm going to get into property investing and I'm going to make a fortune because I've learned how to invest like the pros!" When Joseph told me he knows how to invest like the pros, I had to ask — "OK — how are you going to do it?" "Easy," he said. "I've been to a seminar and signed up for a course." Then he pulled out the advertisement in the magazine that attracted his attention. It promised the ability to control millions of dollars worth of property with none of your own money and bypassing the banks. It also explained how the course presenter had made millions of dollars in seven days. At that point, I felt sorry for Joseph and for the thousands of novice (and some experienced) property investors who will be taken by the new breed of property spruikers who are once again out in force. You can't become wealthy in seven days. You probably couldn't even read the course material in seven days. Here is what the real pros know: You can't create wealth through property overnight, but you can certainly become very rich in the medium to long term by knuckling down and seriously applying yourself in a dedicated, disciplined, persistent way. You get there by following a proven system and by having a safe property and finance strategy. You then implement this by buying the right property, in the right location, at the right price, and holding it for the long term. Not by adding hot water to a packet of magic beans and counting to seven. You can and should accelerate the process by learning the strategies of value-adding through renovations and development, but you can't skip the fundamental process. While property spruikers went quiet during the real estate downturn, unfortunately, the new property cycle is bringing out a fresh group of "property pretenders". There are now property "experts" out there selling advice and courses despite never having built their own property portfolios. This makes it timely to remind listeners that seminars promising easy wealth through property have all too often led to financial ruin. It's just the cycle repeating itself. Of course, this doesn't mean you should do it on your own. To become a successful investor, you will need to surround yourself with a team of independent and unbiased professionals — a team of people who are known, proven, and trusted. Then go ahead and take advantage of the new property cycle, because the future is bright for those who invest sensibly in property. My worst investment loss One of my early investments was a complete loss. I lost 100% of my invested capital many years ago, way back in the 1970s, and the investment mistakes I made that created this disastrous result. But first I want to explain the 2 main reasons why I'm sharing this story. Losing investments can be great teachers You'll not only learn from the investment mistakes you make, but you can also learn from other people's investment errors so that you don't have to make the same mistakes yourself. Losses are a natural and normal result of making investment decisions Don't be so hard on yourself when things don't go as planned because the key to long-term success is what you do when this occurs and the lessons you learn from your mistakes, so you don't repeat them. So here is the story of my big investment mistake where I lost 100% of my investment capital You see…I already owned a few investment properties at the time, but I was in a hurry to get rich quickly. I was offered the opportunity to invest in a Gold Mine. In fact, one of my friends, Brian, had invested the vast sum of $5,000 (remember it was the 1970's and that was a lot of money) into a venture that was resurrecting an old disused gold mine in Wedderburn, near Ballarat in Victoria. Of

Since the First Fleet dropped anchor in 1788, close to 10 million immigrants have moved from across the world to start a new life in Australia. They have arrived in waves, encouraged by developments like the 1850s gold rushes, or to escape adverse conditions at home such as the Industrial Revolution's social upheavals in 19th-century Britain, the two world wars, and the aftermath of the Vietnam War in the 1970s. Collectively these migrants have helped shape what was a uniquely British-based and now multicultural society in Australia. In today's podcast, I chat with leading demographer Simon Kuestenmacher about the history of migration and how it's changed our culture and our property markets over the years, and what's happening to migration now because of our border restrictions. Australia is the land built on migration Immigration to Australia began about 80,000 years ago. And from the 17th century on, the continent was explored by Europeans. European settlements began to crop up around 1788, and the discovery of gold in 1851 drove more activity and permanent settlements. Immigrants have been queuing up to come to the country ever since. But what's happening to immigration in our nation at the moment? About 2/3 of our population growth pre-pandemic came from migration. Only 1/3 came from natural growth. During COVID, the migration has completely disappeared. For the first time, more immigrants went out than in. Our country is so much more multicultural than other nations. When people are concerned about migration and focus on asylum seekers, it's not really relevant, because it's such a small number. One of the biggest drivers of migration in recent times is international students. One in 6 of those students become permanent residents. You can grow the GDP through the sheer number of people added to the country. The natures of homes and neighbourhoods have changed because of migration. We can see this in everything from the design of homes to the food available to buy. We will still see more people coming into Australia as long as they're allowed. Australia is attractive to international students. We also still need skilled workers. Millennials are moving out of their apartments as they age and move on to the next stage, but apartment living remains necessary because of the population size. We will still need apartments, but we may need different ones moving forward. We will need more family-friendly 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: Australia: a land built on immigration, but what's ahead? With Simon Kuestanmacher Some of our favourite quotes from the show: "Just because of the cost of living, we do need more apartments, but we need different apartments than we've built in the past." – Michael Yardney "I know it might sound cliché but work a little bit less and play a little bit more." – Michael Yardney "Remember, most of the things we worry about don't happen, or if they do happen, they're not as serious as we thought they would be." – 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 that time of the month – when I have my regular Big Picture podcast where Pete Wargent and we look at the macroeconomic factors affecting our economy and our property markets This time last year, we were supposed to have a federal budget. Instead, we had a pandemic. And over the last year many elements of our life were upended due to Covid 19 Around this time last year, our Prime Minister Scott Morrison said he'd build a bridge for us to get to the other side and it seems he did. The government threw everything it could, including billions of dollars at creating jobs and keeping our economy moving and it succeeded. And it's still doing so if you look at the federal budget handed down by Treasurer Josh Frydenberg - you'd think it was still raining money. Never before has a budget done so much to supercharge the economy after the worst of a recession has passed. But don't worry, this podcast isn't another rehash of the budget, even though there are a few interesting points I want to discuss with Pete – things that haven't been clearly explained but I think we need to understand as investors. Plus we also will 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 Understanding the Big Picture 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, and who better to discuss that with than Pete Wargent, a lifelong student of and commentator on our economy. Since last month there's been lots of good economic news and Josh Frydenberg delivered this year's budget. The underlying message from this pandemic budget is that while our recovery is running apace, the economy still remains fragile and unable to stand on its own two feet. The government has no option but to continue spending, and it has given the green light to a number of initiatives to ensure our economic recovery continues. With all the tax dollars rolling in, what kind of treasurer could resist spending some of that, given ultra-cheap borrowing costs and an election campaign expected within a year or so? Booming iron ore exports have delivered a bumper company tax take over the March quarter, with the budget's bottom line improving by $30bn since the mid-year economic and fiscal outlook in December. And our economic recovery is likely to continue, underpinned by strong household spending supported by further lifting of activity restrictions, increased confidence, and the world effects from higher housing prices. Rapid fall in unemployment could challenge RBA stance There are now forecasts that expect the unemployment rate to fall to 4.8% by end-2021 and 4.4% by end-2022. And even lower again in 2023 seems likely. These forecasts potentially challenge the RBA's expectation a rate hike is "unlikely to be until 2024 at the earliest". While these forecasts may appear ambitious, they reflect the expectation of a decelerating pace of labour market improvement, particularly in 2022. Ultimately, it will be inflation that matters for the RBA, and the most important judgment in our view is the strength of the transition from underutilization to wages, and then to inflation. The RBA is presuming this transition will be very slow, as it was the last cycle, but the risk around this assessment appears rather one-sided. Sluggish inflation numbers push rate hikes further down the road The CPI rose by 0.6% in the March quarter, taking annual inflation to 1.1% year-on-year. Although this is the third increase in a row, we're still well below the target band and underperformed expectations by 0.3% in March. With a few exceptions, such as jewellery, petrol, and vehicle prices (driven by supply bottlenecks), price pressures remained weak across most of the economy, especially in food and housing. To some of us who remember the Consumer Price Index (CPI) rising above 10% for much of the late 70s and early 80s, the RBA's present determination to drive up inflation might seem a little counterintuitive. Investors are back in the market We know that home loan approvals have been surging, particularly for first home buyers and that investors have taken to the sidelines, but that's changed recently as more investors are now back in the market as evidenced by increasing investor loan approvals. Building approvals surge to the second-highest in history Residential building approvals rose 17.4% m/m in March, surprising sharply to the upside and taking the level of approvals to the second-highest in history. Going forward, we will be looking to see whether the recent strength in detached dwelling approvals will be sustained given the end of the Federal Government's HomeBuilder program (March was the last month to be eligible for the grant). Since HomeBuilder was introduced in June 2020, d

I have found most successful people have at least one, but usually a number of guiding principles. Things like phrases or ideas by which they live and work To help you develop or add to your own guiding principles, in today's show I have rounded up a number of philosophies or thoughts that I'm going to discuss with Mark Creedon, founder of Business Accelerator Mastermind in our monthly Build a Business, Not a Job podcast. But before we get into the main show, I'd like to share all of the philosophies of Steve Jobs, the late co-founder and CEO of Apple. Jobs said: "You can't connect the dots looking forward; you can only connect them looking backward. So, you have to trust that the dots will somehow connect in your future." Another interesting philosophy comes from Michael Jordan how famously said: "I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life and that is why I succeed." In today's show, you'll hear Mark Creedon and I talk about failure and how the way you think about it makes a huge difference in how you approach all areas of your life, so welcome to today's show. Life philosophies that could change your life You don't have to look far on the Internet to find blogs about the philosophies that successful people live by. I enjoy reading those blogs and learning what drives successful people. Interestingly I've found some of the best lessons I've learned are the simple ones. I'm still a voracious learner and if I haven't learned something new by lunchtime every day, I've had a bad day. Take responsibility for your world Shouldn't we all? There's a belief in this world, that I completely resonate with, that everything that has happened to you in your life is a direct result of your actions, either your physical actions or your mental actions. Thoughts are things. As you think so you become. This belief is The Law of Attraction. I know everyone doesn't agree with this – but I believe you should be a part of your life, not a passenger. Don't make excuses, take action "You are what you do, not what you say you'll do" — Carl Jung. Action creates momentum and momentum matters. Sure, it's important to make plans and know which way you're heading, in life, in your investments, and in business but plans are just theory unless you take action. You are the company you keep. Someone once told me that you're the sum of the five people with whom you spend the most amount of time and I couldn't agree more. Studies have proven this time and time again – a Harvard study found that if your friend is happy, your chances of being happy increase 15%. It doesn't just stop there – if your friend's friend is happy, your chances of being happy increase by 10%, and if your friend's friend's friend is happy, your chances still increase 6% (if 6% doesn't impress you, you'll be interested to know that a $10,000 increase in annual income only increases your odds by 2%). This rule also works in the negative sense – if your friend becomes obese, your chances of becoming obese increase 57%. The same goes for smoking (61%) and other negative habits. Embrace your limitations. I know one of my strengths in creating – coming up with the big ideas and implementing them. Or creating things like blogs and podcasts. However, I know I'm not in my flow when doing other types of tasks. Trying to change fundamental aspects of your personality is like swimming upriver – you exert tremendous effort with little forward progress. Instead of trying to change these aspects of myself, I've surrounded myself with others who are better at various aspects of our business than me The race is only with yourself. "Don't waste your time on jealousy. Sometimes you're ahead, sometimes you're behind. The race is long, and in the end, it's only with yourself." – Mary Schmich When you measure your success against that of another, you create an ever-distancing destination at which you'll never arrive. Develop your own goals and celebrate every achievement. Don't stop when you're tired, stop when you're done You're going to get tired of being an entrepreneur and you'll probably even get burned out… especially when things aren't going well. What's helped me succeed over the years is that I am persistent. It doesn't matter whether I am exhausted, or if I feel that I've put enough hours in the day, I just don't ever stop until things are done. As long as you keep on chugging along, eventually, you will accomplish your goals. Commit to doing whatever it takes to succeed Of course, with the exception of causing harm to others! This discipline underpins all of the above. If we wish for success in life, it's essential we commit to making that wish become a reality. The key to success in life is to go from interest to commitment to taking action from personal power. Honesty is a very expensive gift, do not expect it from cheap people

With more of us trading backyards for balconies and courtyards; apartment and townhouse living has become the norm for more Australians. At the same time, budget constraints mean that many investors buy apartments rather than houses. And since there is no doubt that apartment living is going to become more prevalent moving forward, you really need to understand your rights and responsibilities when owning an apartment. Where does your apartment end and where does the common property start? Who is responsible when things go wrong in the common areas? And what six things do you need to know before buying into a strata building? That's what I'm going to discuss in today's show with strata law specialist Amanda Farmer. The inspiration for this chat came from an article I recently read about a Melbourne schoolteacher who thought she done all her homework when buying her first property. She looked around her chosen area in Melbourne is northwest, found an apartment building she liked, and commissioned to building inspection report before she bought the property. But now two and a half years on, she's facing financial ruin. Her block's owners are taking its builders to court over allegations of severe defects in its construction, and she's having to pay for both repairs and her share of spiralling legal fees. Sure, she had a pre-purchase report done by an expert – but he only examined her apartment, and nothing of the building in which it sits, or its communal areas, which all owners are responsible for. She didn't realize, either, that she should also have ordered a strata report that would have revealed, through the minutes of the Owners Corporation, the ongoing battle with the builders. This is a tragic story – a 32-year-old financially ruined through owning the wrong apartment. But it's a story I've heard before, so I hope you're going to get a new insight into what you need to do before buying into a strata property in my chat with Amanda Farmer today. What you need to know when buying a strata property If you're considering buying or already own an apartment, townhouse, or villa unit, whether as a Let's begin with the obvious – what is a Strata unit? Effectively it means: you own your unit or apartment as well as sharing ownership and responsibility for common property if you own your unit, you are automatically a member of the owner's corporation which has responsibility for common property and makes key decisions affecting the strata scheme you contribute to the cost of running the building through paying quarterly levies you also have to pay money into a capital works fund, for future long-term expenses such as painting the building or replacing guttering there will be lifestyle restrictions in a strata scheme. 6 THINGS YOU ABSOLUTELY MUST KNOW ABOUT WHEN OWNING A STRATA PROPERTY: 1) By-laws Includes pets, air conditioning units, noise, renovation works, hard flooring, washing, landscaping, use of swimming pool/gym, short-term letting, rules around moving in or out 2) Levies Quarterly levies can range anywhere from $200 per quarter for a small, self-managed building (ie: with no strata manager's fees) to in excess of $5,000 per quarter for a city penthouse in a luxury harbourfront building with concierge service and numerous facilities. 3) Lot property vs. Common property When you purchase a unit in a strata building, you are essentially purchasing air space. That air space is known as your "lot". Anything outside of your lot is either someone else's lot or "common property". 4) Meetings Important decisions are decided in meetings: eg - whether to add to, alter or erect a new structure on the common property for the purpose of improving or enhancing the common property. 5) Strata manager The duties of the strata manager include receiving and distributing correspondence, issuing levy notices, arranging tradespeople, keeping the owners' corporation's books and records in good order, including financial records. 6) Committee A decision of the committee is taken to be a decision of the Owners Corporation, though a committee cannot decide on anything that can only be decided by the owners in general meeting. Links and Resources: Michael Yardney Amanda Farmer- Director Your Strata Property Get access to my exclusive Special reports library – a bonus for listening to my podcast 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. Join us at Wealth Retreat 2021 – click here to find out more Shownotes plus more here: 6 tips for investors when buying a strata property with Amanda Farmer Some of our favourite quotes from the show: "I'm actually proud that Australia was the country that was the beginning of strata law." – Michael Yardney "I know that if I buy a house, I've got to do a building and pest inspection because it's my responsibility – if there's termites or if there's rising damp, I've go

Property prices have been climbing at a breathtaking pace in 2021. This has been good news for homeowners but heartbreaking for house hunters. At the same time, there have been mixed messages in the media about what's ahead. Of course, there's always the Negative Nellies wanting to tell anyone who is prepared to listen to them the market is about to crash, but other more solid commentators are suggesting our property market is slowing down. And I agree, I believe the pace of capital gains has peaked, but I'm not suggesting home values are about to dip, far from it. Rather I believe we've moved from a peak rate of growth to a pace of capital gain that will be more sustainable. I was recently interviewed by Jarrad Mahon for his Perth Property Insider podcast, and because the questions he asked me were more general in nature, rather than related to Perth I asked his permission to replay the interview with you as I hope you'll get benefits from my answers to his questions. You'll hear me answers questions like how much more life is left in the property cycle and you'll be pleased to know that it's not too late to be early for this property cycle – I'll explain how long I believe is left in this cycle and where the opportunities lie. Topics I discussed with Jarrad Mahon Last year when many of the bank economists predicted a 15%, 20%, 30% fall in property values I disagreed with them I'm on record in March and April last year suggesting that well-located A-grade homes and investment-grade properties would only fall about 5% in value and secondary properties would fall close to 10% in value and I got that right. I also called a turning point in our property markets in October last year when we could see on the ground what was happening long before it showed up in the official statistics. However, I didn't really expect the market to rebound so quickly. All the property markets are stronger than they were 12 months ago. In the last three months, Melbourne's grown closer to 6%. We're in a cycle of upgrading Based on affordability I expect 20- 25% growth this cycle And while this will be a general increase in value around the Australian property market some areas are going to outperform others, as they always do and a lot of this will have to do with demographic High-end properties will outperform, and capital cities will outperform the regions In cities, the apartment market will languish While normally investors make up around 30% of our property markets currently, they're making up around 20% of all property purchases. This will increase and as more Australians become comfortable with their financial situation and hear how well the property markets are performing, we will have a whole new wave of property investors, as has happened every other cycle. The unfortunate thing is that most investors will fail – they will not get past the first investment property and if history repeats itself 50% will sell up the properties within the first five years. Affordability and the deposit gap will slow growth Apra and the RBA said they are not going to interfere as long as lending remains responsible. It's unlikely interest rates are going to go up, but we could see. It's not really population growth that drives our property markets and more demographics which in part includes how many of us there are but also how we want to live and where we want to live. Population growth per se does not cross property price growth family formation does – my daughter just had a baby but doesn't need any extra house. The return of cashed-up ex-pats is having to property price growth. It has been estimated that hundreds of thousands of people return to Australia over the last year, with many of them coming from cities that have more expensive property markets. Many are returning with plenty of Real Estate dollars behind them off in a stronger currency is the Australian dollar which supercharges their buying power even more. Ex-pats from expensive cities like London, Hong Kong, and New York often don't consider our property prices unaffordable I'm not happy to pay whatever is necessary to secure a prestigious property in the desired location Immigrants often rent for a while because they're not sure where to live and this is definitely affected our rental markets, particularly in the big capital cities. Immigrants don't know where to buy – all they know is there a place of employment or maybe the university, so they are often start as tenants. Australia has a business plan to increase our population to 40,000,000 people by 2050. We plan to get to 30,000,000 people by 2030 – that's unlikely to happen – more likely to be 29 million. But that means if you get into the property market today, you're ahead of 3 ½ million other people are going to be buying property in the next 8 to 9 years There is no doubt that people move from one location to another because of affordability, but more important than that is jobs. The ability to work, live, and pla

Today, I'd like to share with you my top insights into creating accelerated wealth. Now, the show is a little bit different, because it's actually the audio of a webinar I conducted with my friend Louise Bedford who asked me to share with her audience my insights into creating wealth in this new business, property, and economic cycle. It came at a great time because I was preparing the curriculum for Wealth Retreat this year that we'll be holding on the Gold Coast in June, and I was reviewing my notes from previous years and speaking with previous attendees. I was blown away by the feedback as previous attendees explained how the Wealth Retreat changed the way they handled their investments, their business and their lives. That's high praise from people who are already very successful. So, I hope that sharing my insights will also benefit you and help you take advantage of the opportunities that lie in front of us in 2021. My insights into wealth creation The first step along the investment path is educating yourself. It's what I still do today to keep growing and it's what all successful investors do. Experience is an expensive teacher. I recognised that we all have personal ceilings of achievement that are based on our current thoughts and habits. The answer is to grow yourself into a bigger cup so that you attract and keep more wealth. You do this by upgrading your wealth programming – the way you think and react about money. We all need to learn from mistakes – this helps you get it right and move forward. The only question is, whose mistakes? Yours or those of the successful investors who have already achieved what you want to achieve? Remember, building wealth all on your own is not only hard work, but it's slower and riskier. Alone you are vulnerable and will never reach your fullest potential. But when you connect with the right mastermind group, the chemistry will literally propel you to heights you never dreamed possible. The biggest obstacles we need to overcome to become financially free Obstacle #1: Isolation: It's hard to build wealth on your own You see…alone you are vulnerable. You will never reach your fullest potential. But when you connect with the right people, a whole new set of options you never dreamed possible opens up to you. In fact, one of the main reasons people attend Wealth Retreat is to have an instant peer group of movers and shakers. Obstacle #2: Fear One of the greatest obstacles to building financial freedom is fear. And with all the mixed messages in the press at the moment with concerns about, the after-effects of the Corona Virus on our economy, what will happen when JobKeeper ends, growing social unrest in Australia – not just overseas, the challenges with obtaining finance and talk of a property bubble developing, many of us are more fearful than ever. This fear can be taken many forms, but the big 4 fears I come across are: Fear of failure – this is especially prevalent. Fear of debt – most of us have been taught that debt is bad and not to take on more debt. Strategic investors recognise that debt in itself is not necessarily bad, rather it's not being able to repay your debts that's a problem. Fear of success – Interestingly, some beginning investors put off their investment decisions because they are haunted by a fear of success. While this may initially seem strange, this fear generally stems from a feeling of unworthiness, where people convince themselves that they are undeserving of wealth or wanting to accumulate wealth makes them a bad person. Fear of the unknown – Who wants to go into a dark room? Who wants to go to a party where you don't know anyone? Who is not nervous about buying their first investment property? Whenever the outcome is uncertain, fear rears its ugly head. Another fear I have commonly seen is the fear to follow your passion. Obstacle #3: Uncertainty The third major obstacle I've observed our Wealth Retreat graduates had to overcome was confusion. They had heard so much conflicting financial advice over the years that they quite simply didn't know which direction to move in. How to overcome these obstacles One of the most valuable benefits of Wealth Retreat for attendees was that it simplified the complex world of wealth building and business planning so that they had a crystal clear, specifically defined plan of action to pursue their personal wealth building. Alone you are vulnerable; connected we are strong It really struck me how easy it is to fall back into old habits and let negative outside influences dramatically impact our mindset and financial results when we are on our own. We cannot be our best selves in isolation from the world. We need other people. The key is making sure we're spending time with people who inspire, empower, and encourage us. Your peer group is contagious One of the things that struck me on the first night at Wealth Retreat, when we all got together for a special surprise event (the details of which I can't r

Perhaps it's a reflection of how old I am, but as I keep seeing the stories in the media about rapidly rising house prices, I simply think: here we go again. There are already those out there telling us we are in the housing bubble that's going to crash. Then there are others who are warning us how the Reserve Bank or APRA are going to interfere and slow things down. And then the banks that only 12 months ago forecast house prices would fall 10, 15 or 20 percent are now suggesting house prices could rise by 10, 15, or even 20 percent in this year alone in some areas. While these periods of rapid house price rise essentially come down to the forces of supply and demand, each sprinkled with varying quantities of irrational exuberance, the precise forces behind each of the housing booms I've invested in over the last almost 50 years are not the same. I remember just after I bought my first investment property early 1970s inflation boomed when the Whitlam Labour government came in. At that time interest rates were much higher than they are now. Inflation had the effect of reducing the real value of mortgages, but it was also a time of strong wage growth. Then I remember the great property boom of the late 1980s which was one of the factors that led to the recession we had to have in the early '90s and particularly remember the boom in the early 2000s, when investor demand was a significant factor driving up house prices, in part because of the changes made to the capital gains tax regime at the time. Looking at the current housing boom, there are some very interesting features that contrast with previous cycles. The first is that population growth is currently very low, in fact, net immigration actually caused Australia's total population to fall over the past 12 months. That's very different from previous booms — particularly in the middle of the last decade — where strong immigration was an important driver of rising house prices. Another interesting difference is the relative absence of investors in the current housing market compared with owner-occupiers. This is reflected in the much stronger demand for standalone houses rather than apartments. In February this year investors only made up about 20% of all home loans while traditionally this is closer to 30%. And it's not just local investors that are missing. There is also the absence of foreign investors. During the last boom Asian investors, particularly from China were an important force driving up property prices and buying many of the high-rise apartments being built in our CBD. They are nowhere to be seen this time around. So far, a significant factor of this property boom has been the presence of first homebuyers assisted by various federal and state government initiatives including the homebuilder program, the first home loan deposit scheme, and various deputy concessions. While our banks are keen to lend to First Home Buyers, I've heard that the Bank of Mum and Dad is now is the fifth largest lending institution in Australia. Here homeowning parents who sitting on significant equity in their property help their children get into the housing market either with gifts, loans or they assist by guaranteeing their loans. So how can you make the most of this property cycle? Is the Reserve Bank going to interfere and raise interest rates? Will APRA slow down lending as it has in the past? These are all questions I'm going to ask of my regular podcast guest, financial adviser Stuart Wemyss. Truths about the housing boom Our property markets have been surging this year with double-digit growth in sight for all our capital cities. And now that more Australians feel secure about our economy in general, and their jobs in particular, this will only place more impetus under our markets. And it's clear that FOMO (fear of missing out) when homebuyers and investors are scared the market is running away from them is driving many decisions. Buyers feel they must get into the market and this is showing with even secondary properties selling well above their vendor's expectations. Normally at the beginning of the property cycle, there is a flight to quality – people remember the type of properties that held their values well during the downturn and avoid secondary properties. But currently, I'm seeing some home buyers so worried the market is going to pass them by that they are compromising their selection criteria just to get into this market. Unfortunately, we've seen how you end up when the market eventually slows down, and it's not always a pretty sight. So what's ahead for the markets this year and how can you take advantage of our current property boom without getting burned? That's the topic of my discussion today with independent financial adviser Stuart Wemyss. Will the RBA increase the cash rate? The lowest 40% of income earners have been affected by COVID-19 the most. An increase in interest rate would adversely affect low-income owners when they could least

We are experiencing extraordinary times with a booming economy and surging property market yet if history repeats itself, most investors won't become rich. So, in today's podcast, I want to share three lessons with you to help even the odds in your favour. Firstly, I'm going to explain six reasons many property investors don't become rich, and they're probably not ones that you would've thought of. I would then like to discuss a controversial topic with you - that debt can actually be an asset, not a liability. Of course, not everyone agrees with me, but I hope once you've heard my point of view you will understand why the rich are getting richer because they know how to use it wisely, especially in today's low-interest-rate environment. And then I'm going to share 5 things that you can do differently to make your future better. The reasons why property investors don't become rich Reason 1 – Most people wait too long to start Many investors are waiting for everything to be "perfect" before they get going. Which means they never get going. The longer you wait to get started with your investing, the longer it will be before you get the money, success, and freedom you want. Reason 2 – Fear stops them Fear keeps many of us from getting what we want, especially in matters of money. Some fear taking on more debt, others fear failure and some even have a fear of success. Successful investors have learned to harness their fears and rather than focus on the negatives, they use fear to force them into positive action. Reason 3 – Waiting until they know enough The fear of not knowing enough prevents other investors from getting started. However, the irony here is that the more you learn, the more you learn that you don't know! The way out is to recognize that while you don't know it all, and you never will, you do know enough to get started with your investing and you will learn more along the way as you apply your knowledge in the real world, surviving any mistakes and challenges along the way. Reason 4 – Focusing on linear income instead of passive income Some income streams are linear, and some are passive. Linear income is what you get from a job. Passive income is when you work once but continue to get paid over and over again from work you're no longer doing. The way to become wealthy is having passive income coming in whether you go to work or not. Reason 5 – Not using systems for making money A system for making money is something that takes the emotion out of your investment decisions and makes the results more reproducible. My preferred system is investing in high-growth property. Once you create a proven system for making money, there is no limit to the money you can make. Reason 6 – Not being patient Warren Buffet once said: "wealth is the transfer of money from the impatient to the patient." To become a successful property investor requires patience and persistence. You must not only get started, but you must continue on and follow through. How debt can be an asset You were probably taught by your parents to get a good education, a good job, buy a home, work really hard, and pay off your debt. But, in my mind, that's not a productive use of the equity in your home. Instead, you should recycle the equity in your home and convert it into productive debt to buy income-producing assets. The three types of debt Bad debt: This is debt against assets that depreciate in value. Bad debt generally refers to things like credit cards or other consumer debt that does little to improve your financial outcome. Necessary debt: This is the non-tax-deductible debt against your home, but it's something essential that can't really be avoided. Good debt: This is a tax-deductible debt against income-producing and appreciating assets. Think loans against residential investment properties business loans. A seven step guide to debt recycling Over time you will have paid down a portion of your home mortgage with a principal and interest loan and during that time your home would have increased in value. The bank will often lend you up to 80% of the value of your home as long as you can show serviceability. You would take out a new investment loan using your available home equity as security and the purpose of this loan would be to use the funds as a deposit on an investment property. You could use this to invest in assets that produce both income and capital growth such as a managed fund, shares, or as the deposit against an investment property. You could even use the income generated from your investments, plus any tax advantages of a geared investment, to pay off the non-deductible debt in your home loan. Over time you will build your wealth as your investment property or share portfolio should increase in value over time and the cash flow you receive in the form of rental or dividends should also increase. At the same time you will slowly be paying down the mortgage on your home, so that when you reach your retirement years and

Property investment may be simple, but it's not easy. It's simple if you follow the rules and the right strategy, but it's not easy because there are so many moving parts, and most people don't even recognize that. Successful property investment requires the collaboration of a team with expertise in property, finance, tax, the law, and financial planning. If you're a regular listener, you'd know I try to give you a mix of all of those things to give you a holistic overview of property investment. Today's episode is no different. I'll be talking to Ken Raiss, my business partner at Metropole Wealth Advisory, about the best ownership structures for property investment. After that, I'll share my mindset message with you. Highlights from my chat with Ken Raiss: What are ownership structures? They're a way of controlling your assets without owning them. It's a way to get all of the benefits of having them, like wealth and the ability to pass assets on to your children, without actually owning them. They give you a better way to manage cash flows, tax, and asset protection while separating you from the asset. People's lives and circumstances change. So even if you already have your portfolio and structures in place, it could make sense to change it now, depending on your circumstances. Types of structures: In general there are Companies and Trusts They've both been around for a long time, but they're now coming into use by ordinary people. Companies are very regulated. They must meet the minimum regulations set by the government. There are no government laws or rules about what needs to be in trust. Trustees may hold the cash, but they have a legal obligation to use it the way that the trust says they have to use it. Trusts have lots of flexibility concerning who you can give it to and what you can use it for. Benefits of using a trust: A more efficient way of distributing cash flows Be able to manage their own tax affairs Better control and management of the estate on death More flexibility Asset protection Common mistakes people make when using structures: Setting up a company, particularly for a business, then becoming the individual shareholder Setting up a company when trust would be more appropriate Setting up a trust when you'd be better off with a company Getting the wrong type of trust Selling a property from a trust in such a way that the depreciation is added back to the trust once or twice Failing to take the trust's end date into account Links and Resources: Michael Yardney Ken Raiss, director Metropole Wealth Advisory Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here In turbulent times like this why not get the team at Metropole on your side – find out more here Get your own copy of What Every Property Investor Needs To Know About Finance, Tax and the Law. Shownotes plus more here: What is the best structure to buy your property in, yet protect and pass on your wealth, with Ken Raiss Some of our favourite quotes from the show: "Before people panic too much, there are things that can be done to amend trustees." – Michael Yardney "Many trusts have very broad definitions of who beneficiaries can be." –Michael Yardney "I guess one way of summarizing the habits of successful people could be: successful people start before they feel ready." –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

Almost 50 years ago I began my study of rich and successful people. Of course, not all rich people are successful. But I remember trying to understand why some people were rich while others kept struggling financially. Over the years I attended many seminars, paid mentors, and read as many books as I could on the topic of success. I modeled successful people and eventually grew successful myself. It wasn't easy, I've had my challenges in life (mostly self-inflicted) and I've hit rock-bottom, but I got up again, learned from my mistakes, and moved forward. Over the years, I grew a very substantial property portfolio, built a national business this has won multiple awards as Australia's leading property consultant and has been involved in over $4 billion worth of property transactions, and currently manages over $2 billion worth of assets for our clients. As you can imagine I have learned a few things about wealth and success along the way. And a byproduct of this is my top-selling book – Rich Habits Poor Habits — that I co-authored with Tom Corley and which has become an international bestseller and translated into a number of foreign languages including. In our book, we explain that being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. So, if you want to become rich, one of the first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people think. Unfortunately, we live in a society that teaches us that money equals success. Like many other things, money is a tool. It's certainly not a bad thing but, ultimately, it's just another resource. Regrettably, too many people worship it. Now, I didn't understand this when I began my study of rich and successful people more almost 50 years ago. Over the years I have learned that… Being rich has little to do with the money itself. Instead, it has a lot to do with how you think about money. This means that if you want to become rich, one of your first steps is to know how the wealthy think about money differently than you do and to start thinking like them. The next step is to take action and to let the action become natural by thinking the way wealthy people do and developing what we call Rich Habits. In the last month's Rich Habits Poor Habits podcast, Tom and I discussed some of the Rich Habits that are common among successful people, and in today's show, we are going to continue this discussion, so welcome to today's show. Rich Habits of Successful People If you've been reading my blogs or those of Tom Corley, or if you be listening to our monthly Rich Habits Poor Habits podcasts or you've read or RHPH book you will know that rich people share similar habits just the way poor people share similar habits. Now before you get too offended… We're not making a judgment when we say rich people or poor people – they are terms we're going to use to help clarify the different ways of thinking that 1% of people exhibit from the majority of the population. So, let's learn more about these habits, Maybe we should clarify what habits really are: Habits represent unconscious behavior, thinking, choices and emotions. A habit is formed when neurons (brain cells) talk to one another repetitively. Habits have a purpose. More Rich Habits of Successful People Rich and successful people align themselves with like-minded people. They understand the importance of being part of a team. They create win-win relationships. The poor believe money will make them happier, while the rich know that money has little to do with happiness, but it does make your life easier and more enjoyable. The rich don't blame (what's the point?) They take responsibility for their actions and outcomes (or lack thereof). They know there is no such thing as a rich victim. The poor believe it's wrong for a small group of people (the 1%) to possess most of the money. The rich welcomes the masses (the 99%) to join them. Successful people are not necessarily more talented than the majority, yet they always find a way to maximize their potential. They get more out of themselves. They use what they have more effectively. The poor believe that in order to gain something, you must sacrifice something else. You must choose between great family life and being poor, or love and being poor, but you can't have both. The rich know they can have it all if they have an abundant mindset. Successful people are solution-focused, rather than looking for problems or obstacles. Successful people are fearful like everyone else, but they are not controlled or limited by fear. They use it to empower themselves. The rich get up early. They know there's no shortcut so they work hard until they've accumulated a big enough asset base so they don't have to work hard anymore. The rich ask the right questions – ones that put them in a pro

I recently read an article in the Australian by leading demographer Bernard Salt that made me think. He posed an interesting question. He said, "imagine taking an Australian couple from the 1950s and placing them in our society today. What would surprise them most?" Would it be the internet or mobile phones or our general level of prosperity? Maybe it would be something seemingly unremarkable (to us) such as the ubiquitous use of plastic. Or maybe it would be the idea of wearing outer garments with slogans, brand names and images paraded for all the world to see. Perhaps it would be our accent – it would sound less Australian, or the pronunciation of some words which would have more of an American twang to them, or even some of the words we use. Terms such as 24/7 became popular after the turn of the century, which brought with it the alphanumeric concept of Y2K. Bernard Salt suggested that if this '50s couple were to wander around the CBD of any big city, he was sure they would be struck by the ethnic mix of the people, the cafes, the independence of women, and the absence of formal dress, with hatless men and gloveless ladies everywhere. I'm sure he's right. This got me thinking about what will change in how we live moving forward after the coronavirus pandemic. How is your lifestyle going to change? While this is an interesting academic question it is also an important question to ask ourselves as property investors, business people, or entrepreneurs. As we move through 2021, we're still getting regular reminders that even though life is more normal, the effects of Coronavirus will be with us for a long time. While some people are still looking back in the rear vision mirror to see what lessons we can learn to give us some guidance for the year ahead, let's look forward into the future as I chat with leading demographer Simon Kuestenmacher Simon is Director of Research at The Demographics Group, a columnist with The Australian, and a regular guest on this who is globally recognized as a rising star in the field of data management and insight and a regular guest here on my podcast. All trends point towards Australians looking inwards, focusing on family matters, embellishing the family home. Retail shifted online during the lockdowns but even after Australia opened up again online retail remained higher than expected before the pandemic. The changes in retail sales by industry sub-group also show how Australians are investing in their family homes. Major events don't just change the way we view the world but also change the way we want our homes to look. When Italians and Greeks moved to Australia, we transitioned from building English homes to building Mediterranean homes that allow us to combine indoor and outdoor living. After the millennial drought, we added water tanks to our homes. During the pandemic, we added veggie patches, additional storage (for food and toilet paper?), zoom rooms to the house, and changed the way we use our garages. Even after droughts, pandemics, and Mediterranean migrant waves are gone the changes introduced to our homes are still there. The current changes suggest larger homes will be in more demand. Customer behaviour also is linked to customer income. The story here is simple. The richer you are the less intensely the pandemic hit you. Tenant selection should be on an investor's mind. This data further suggests that lower-skilled workers will struggle to afford homeownership and will therefore be renters. Links and Resources: Michael Yardney 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. Join us at Wealth Retreat 2021 – click here to find out more Simon Kuestenmacher - Director of Research at The Demographics Group Shownotes plus more here: These are the big trends post-Coronavirus and they may not be what you expect with Simon Kuestenmacher Some of our favourite quotes from the show: "Even dress code seems to have changed. People are less formal post-COVID." – Michael Yardney "Sometimes we only look at what it costs to do something, and then when it seems too hard, we just don't do it." – Michael Yardney "You're never going to become rich if your money doesn't work for you while you're asleep." – 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

There are a lot of great things about being an adult, such as setting our own bedtimes and owning the pet of our choice. But perhaps most importantly, with age comes the wisdom and perspective we only wish we had when we were younger. So if you had the opportunity to go back in time, what would you have liked to tell your younger self? That's what I'm going to discuss today with Mark Creedon and even though we can't go back in time, we can reflect on the hard-earned knowledge we wish we had known then. And we can even use it to inspire our future selves. What would you say to your younger self if you could? When we are young, we think we know it all. We have our whole lives ahead of us, and the exuberance and energy to go after what we want. But our 20s can also be a time of great insecurity. We are hungry and ambitious but lack the experience to know how to calculate risk properly, follow our gut or learn from our mistakes. Put simply: we don't have enough runs on the board to make fully formed decisions. But what if you could have a conversation with your bright-eyed, 20-something self? If you could have given he or she some wisdom from the future what would it be? What would you warn them against or encourage them to do more of? Here are some of the things we discuss: Look after yourself Hard work to the exclusion of all else is not the answer. Take Calculated Risks You don't save money by doing everything yourself. 5. Get a mentor; get a few mentors and be prepared to pay for them 6. Choose your friends carefully Admire rich people 8. Educate and motivate yourself Make investing a priority Don't compare your life to others, especially on social media. 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 Join us at Wealth Retreat 2021 – find out more here Shownotes plus more here: What's the best advice you would give your younger self? | Build a Business, Not a Job Podcast Some of our favourite quotes from the show: "I think I was probably too driven, too focused in the first part of my life." – Michael Yardney "I believe it's really important to choose your friends carefully, choose your friends wisely."— Michael Yardney "I don't particularly like employing people who haven't had failures in life. It means they haven't had a go." – 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

We're at the beginning of a new economic cycle, a new property cycle, and a new business cycle - a time when lifetime wealth will be created by some people, but unfortunately not by most. I was recently asked by somebody in my mentorship program how to make the rest of their life the best of their life – how to make the second half of their life much, much better than the first half of their life. And that's what I'm going to discuss with you into today's show. So today we are not going to talk about property or money, we are going to have a much deeper conversation. Of course, property and money are important but only as a means of achieving what do you want to achieve and that's really what we get to talk about today I'm going to give you some hints on how to take advantage of all the opportunities that are currently in front of us. One of the things I realized early in my investment career is that those who are successful think a particular way and that's why I spent a lot of time studying the psychology of successful people and that's one of the topics I'm going to be touching on today – so while a chat today may be a slightly heavier conversation than you used to – I believe it will be very valuable so I look forward to giving you some different insights into wealth creation, but before I do let me ask you a question? How is your peer group going? If you want to change your outcomes, have you considered upgrading your peer group? It's been said that you're level of wealth is likely to be the average of your 5 closest friends. Here are the top three reasons why your peer group matters so much: Your peer group's attitudes, beliefs, and behaviours are contagious. Alone you are vulnerable; connected we are strong. It's a lot more fun to build with other people than in isolation! A little about gratitude I'd like to chat a little bit about something that may initially seem unrelated to money and wealth and I think you probably have come to this podcast to learn about, but in reality, it isn't. Let's talk for a moment about gratitude. And here's why…Gratitude is a trait you'll find common to all wealthy people. You can have all the money in the world, the biggest property portfolio, the most profitable company, but if you're not grateful for what you have, you'll never be wealthy. We've all seen or heard of people who have lots of money but lead miserable, isolated lives. And we've heard of others with very few of the trappings of wealth yet who lead very fulfilling lives, very wealthy lives, because they are grateful for what they have. So, in my mind it's critical to be grateful. One way to make this the best year of your life is to be grateful for everything you have and for every day you have. And then tell people how you feel… Send a thank you note, send a text, a Whatsapp or better still do it the old-fashioned way and pick up the phone and show your appreciation to someone every day. One of the most interesting aspects of this idea of active gratitude is that it has a boomerang effect. You'll be surprised how it comes back in many ways to make you wealthy and to help make this your best year ever. But, actually that's not what I was intending to talk about with you today, so lets get back to some other ideas about how we are going to make this your best year ever. Let me make a bold statement… What you feel is true about what is possible for you will dictate what you achieve. What you want to achieve this year must come first and then you'll work out how. That's why you must have goals for your future. I know that once you become successful in business or your property investments it's sometimes hard to have big goals – you've achieved a lot already. Can you pick this one of the things I find common amongst the attendees of the wealth retreat – have achieved a lot of the big goals in unsure what to do next. So my question to you now is…what are your goals for this year? What are your goals for the next five years? What is your financial goal for this year and for the next 5 years? What are your physical and mental goals? What is your goal for your relationships? What are your career goals for this year? You see… in about less than 9 months you are going to arrive at the end of the year again. Are you going to arrive at the place you want to be at? The place you have chosen and have done everything you could to get there. Or are you going to once again say: "I didn't reach my goals." The "what" always comes before the "how." One of the things I've studied is how it is possible to retrain the brain. And I've based this Mentorship program on my findings. I studied to find out if it is possible to take a belief and put it aside if it doesn't serve you. Can one take a belief like "I'm not smart enough", "I'm not good enough" or "I don't deserve to have success" - is it possible to set those neutral network patterns aside and create new patterns in the brain? As you've learned from my blogs and podcasts you

I took some time last weekend to look at some articles and commentary that came out about a year ago when the GVC (Great Virus Crisis) was just beginning. The media was full of negative commentary but in my regular podcasts my guests and I gave a much more measured commentary using our perspective gained from many years in the market, and as a result we were circled by a pack of "hangry" housing bears. They were all confidently growling that local house prices would slump by the largest margin on record. Of course, they were fuelled at that time by some crazy forecast from the banks and the perennial negative Perma Bears who were praying for the mother of all housing depressions. Now the media is full of positive news and most of the bears have gone back hibernating in their caves, but some are still out there telling us the upturn in our property markets is just temporary. We have an embarrassment of riches, with our economy and our property markets surging ahead. 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. No fiscal cliff at the end of March Remember how the property pessimists were worried that we would fall off the cliff due to the many deferred home loans? Many banks gave temporary relief to borrowers impacted by COVID-19, allowing them to defer payments for a period of time. However, APRA reports that as of 28 February, a total of $14 billion worth of loans are on temporary repayment deferrals, which is around 0.5 percent of total loans outstanding, down from $37 billion (1.4 percent of total loans outstanding) in January. Sure, lots of homeowners and property investors took advantage of the mortgage safety net, but they didn't need to use it and are now repaying their debts. We're not falling off of a fiscal cliff and our banking system is sound and stable – so it's a pity the Negative Nellys created so much stress amongst those who listened to them last year. Property prices and GST boost state budgets by $7billion The fastest house price growth in 32 years nationally has fuelled stronger than expected stamp duty revenues while also adding a feeling of wealth for existing homeowners. We know when we feel wealthy and secure, we will tend to spend more. This all good news to help continue boosting the post-COVID-19 economy. And this has a flow-on effect on government budgets. We know our governments have taken on more debt to help us get through the coronavirus crisis, but now it seems that State government budgets are a collective $7 billion better than expected as rapidly recovering housing markets and consumer spending lift goods and services tax and stamp duty collections run ahead of forecasts. Federal estimates of GST collections are already $5.9 billion ahead of where they were forecast to be just three months ago, while stamp duty estimates have improved in every state by more than a combined $1.5 billion compared to past figures. The latest home loan figures show that investors are back in the market The latest ABS figures show the value of new loan commitments for housing fell by 0.4 percent from a record-high $28.75 billion in January to $28.64 billion. On the other hand, investors are back in the market with lending to investors rising by 4.5 percent in February to 3-year highs of $6.94 billion, while lending to owner-occupiers fell by 1.8 percent to $21.70 billion. For owner-occupiers, the value of loans for construction rose 4.4 percent in February to a record-high $4.25 billion. Renovation loans rose 8.3 percent to 11-year highs of $322.4 million. Building approvals surging ​February saw another big upside surprise for dwelling approvals which leapt 21.6% in the month to be up 20.1%yr. ​The record house building approvals were driven by the government's HomeBuilder program which has now have sparked shortages of key tradespeople and helped push the price of materials up by as much as 50 percent. ​Rampant demand in the renovation and home building sector is hitting customers with significant delays and pushing up the price of materials. And disruptions to international supply chains are only making matters worse. ​​With dwelling approvals for houses at record highs, it's likely we will see additional pressure growing on construction costs as demand continues to build for residential construction materials and resources. The lift in residential construction costs is also placing upwards pressure on inflation where housing costs receive the heaviest weighting within the CPI 'basket' of goods. Although HomeBuilder has now been phased out at the end of March 2021, it's highly likely we will see a continuation in this tr

Why are you investing in property? Or why do you want to get involved in property investment? It's not really for the properties, is it? For some people, it's because they want to fund their retirement, while for others it's that they want more choices in life – they don't particularly want to retire, but they want to work when and how they want to work and because they want to go to work, not because they have to. However, the inconvenient truth is that despite over 2.1 million Australians investing in property, 92% of them never get past one or two properties in the portfolio, meaning they won't be able to fund their retirement. So, is it really possible to live off your property portfolio in the current economic climate and in our more challenging finance environment? The answer is… the rules of finance have changed considerably and how one funds the longest holiday you're ever going to have – your retirement – is very different from how you would have structured it many years ago. And that's what we discuss today in my chat with financial advisor Stuart Wemyss. At the end of today's podcast, you'll have more clarity on how to successfully live off your property portfolio. And I'm sure you won't be surprised if I tell you it's not what most people would recommend. Funding your retirement from property investment More and more Australians are looking at property investment as a form of taking control of their financial futures. Yet some people seem to be questioning the ability to really fund a reasonable retirement through property investment. So, today I'm going to have a chat with Stuart Wemyss, to get an understanding of how to fund the longest holiday you'll ever have – your retirement. Many years ago, I was introduced to the concept of living off the increasing equity of your properties, but that really isn't possible in the current lending environment. In fact, it's changed since the global financial crisis. So you'll have to build an investment portfolio that will allow for a great retirements Stuart and I discuss The importance of building an asset base. How does one structure a portfolio? So many unknowns for the future Must account for taxes What about interest rates – will they remain low it is best to acquire a combination of investment assets i.e. some property, some shares (hopefully in super), and some cash by the time you reach retirement. It is not necessary to acquire these assets equally each year. People who insist on "property, property, property" or "shares, shares, shares" are probably biased. It's OK to take a level of debt into retirement if you can comfortably service it. Borrowing to invest is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodology to select quality investments. If used wisely, debt can be a very effective tool. However, whilst your investment strategy will require you to get into debt, the strategy must also articulate how you will get out of debt (i.e. repay it). Links and Resources: Michael Yardney Metropole's Strategic Property Plan – to help both beginning and experienced investors Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here Stuart Wemyss – Prosolution Private Clients Stuart's Book – Rules of the Lending Game Shownotes plus more here: How do you fund your retirement using a property portfolio in today's financial environment, with Stuart Wemyss Some of our favourite quotes from the show: "We don't know what the rules are going to be when you retire in the future." – Michael Yardney "To get the results most of us are looking for, you need a plan. You need a strategic financial plan." – Michael Yardney "Your wealth operating system is what connects your inner self, your thoughts and your feelings, with the outer world." – 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

With the property markets surging around Australia, people are starting to ask is this more than a just a property boom? Are we about to enter a property bubble? That's what I'm going to discuss today with property researcher John Lindeman, and we'll explain the difference between a boom in the bubble in what we believe is ahead for a property market so you have more clarity in making investment decisions But before I have that chat with John, I will explain to you what it takes to be in the top 1% of wealthy Australians. And what it takes to be in the top 1% wealthy people in the world. And the figures I'm going to share with you may surprise you, in fact, if you're listening to this, you're likely to be amongst the top 1% of wealthy people in the world. But I'm then going to share with you what you can do to work your way up the ranks. And I will also have my regular mindset message for you at the end of the show. Who is in the Top 1%? Today, I'd like to have a bit of a chat about what it takes to be in the top 1% of wealthy people. We know that true wealth is more than how much money you have or how many properties you own. But you don't have to look far to see the references to the top 1% of money earners and how disproportionate the distribution is in Australia and around the world. The coronavirus also helped expose the deep divide between the rich and the poor. But you may be surprised to find that the 1% doesn't just include the superrich. It may include you or someone you know. How rich do you think you need to be to make it into the 1% club? It's very likely if you're listening to this podcast you're already in the one percent. According to last year's Global Wealth Report, an individual net worth of Australian one million two hundred ninety-five thousand dollars, a combined income of investments and personal assets, will make you amongst the world's richest people. In other words, you need about 1.3 million to be in the world's 1%. As it turns out, there are discrepancies even among the 1%. But when you look at the Bureau of Statistics, the average Australian has a net worth of just over a million dollars, and the Australian top 20% have a net worth of 3.2 million dollars. So, a net worth of just 147,000 Australian dollars puts you in the top 10%. To be in the top 1%, you only need 1.3 million And Australian wealth is heavily skewed to property ownership. Just owning their own home can make many Australians more money than their day-to-day work. That's why I discuss how to become successful in property. I want you to be in that 1%. But what's the solution to wealth inequality? Focus less on taking action that could inhibit the top earners and more on what's stopping others from being successful and what's holding back the bottom 50%. If we're in a property boom, when will the bubble burst? We are in a new property cycle, but rather than starting off slowly as they have in previous cycles, almost every property market around Australia is exhibiting strong capital growth. This time around is very different from other cycles I've experienced where capital growth starts slowly and different segments of the market in different states behave differently. Currently almost every market, in capital cities and regional Australia at the high-end price segments of the market and it's the first homeowner level are moving upwards in price. The one segment which is languishing is the CBD high-rise apartment. Some commentators are claiming that our property markets are heading for a boom – I'd say they're a bit late to call you at that – we are in boom conditions. But others are warning that we could soon be in a price bubble that is about to bust. So, what's the difference between property booms and price bubbles, which are we in, and what's ahead. That's the question I would like to ask leading property researcher John Lindemann of Property Power Partners – John is one of the popular regular guests on this podcast and a regular blogger on property update and Your Investment Property Magazine So, let's start with some basics – what's the difference between and property boom and bubble? Bubbles invariably bust and when they do, housing prices end up much lower than where they started. Property booms, on the other hand eventually run out of steam with an occasional small price correction followed by a prolonged period of little to no growth. While bubbles do not happen in the general Australian property markets which are underpinned by a large proportion of owner occupiers, in the past we have seen property bubbles in certain speculative sectors of the property market such as mining towns or off the plan poor quality high-rise apartment towers in our capital city CBDs. The issue is that they both look the same at the start. It's the type of buyers causing the growth. Buying demand from investors grows when prices rise and the more that they increase, the more that investors want to buy properties. Owner-occupier

Who do you ask for property advice? With so many mixed messages and so many people out there with property advice, who can you trust? Today I'm going to teach you the ten-meter rule, and suggest you never break the ten-meter rule when getting property advice. The rule will also stand you in good stead in other situations where people are willing to offer you advice. Then I'm going to have a long chat with you about the reticular activating system. At the end of today's show, you'll have some new ideas and tools that will help you take advantage of our property markets. Introducing the 10 Meter Rule Now that the conversation has moved away from COVID-19, it seems everybody I bump into has an opinion on our property markets. They're reading all the news and while some believe property markets are going to perform strongly there are still many who believe we are in a bubble or a Ponzi scheme that's about to collapse. Some are keen on buying off the plan, others are looking at houses and land packages and yet others think it's better to rent and buy. I saw something similar when I was having a chat with the young lady who came up to me a few weeks ago when I was sitting in Church Street Brighton having a coffee. She obviously recognized me from my blogs or my photos on the Internet and wanted to ask me some questions about real estate, so I gave her a few minutes of my time. The conversation started with what I thought was going to happen to our property markets, but then when I asked her what her plans were, she explains to me how she recently paid a lot of money for a course to learn how to be a buyers' agent and was going to help homebuyers and investors. She was going to make that her career. I know the course she is talking about because it has produced a whole swag of new buyers' agents, so I asked her a little bit about her background. She had brought one investment property a couple of years ago in a suburb of Melbourne, which hasn't performed very well, and up until last year, she was a teacher. But now with her newfound knowledge and enthusiasm, she was going to charge others to buy real estate for them. As I listened to her story it reminded me of a blog that I read probably over a decade ago by Canadian property commentator Don Campbell where he explained how a comedian made a significant difference to his property investing. Now investing in real estate is no joke, but a comedian taught him the final 30-foot rule, which I have changed to the final 10-meter rule, and understanding this will make a difference for you. Okay, in a nutshell, it comes from the comedian, old-school comedian, Buddy Hackett. My understanding of The Final 30 Feet (or the Final 10 Metres as I'm now calling it) came from a warning given by Buddy Hackett to a young and upcoming comedian on how to deal with the mountains of advice that TV executives, promoters, friends, and family will give him as he built his comedy career. Buddy's advice was simple yet profound: "Listen politely, smile and allow them to feel helpful… then turn around and seek out and take advice only from those who have walked The Final 30 Feet." The obvious follow-up question was: "What do you mean the Final 30 Feet?" Apparently, Buddy said: "Only take advice from those who have walked the final and most important 30 feet from backstage to being alone in front of a microphone with nowhere to hide. Then, and only then, will you know the advice comes from reality and not theory. They'll understand the emotions, the work it takes to get it right. They'll have made the mistakes and created the laughs, not just read about how to do it." This sage advice is obviously very relevant about whom you should listen to with regards to property and wealth advice. In essence, there are a lot of enthusiastic amateurs out there who despite their best intentions, and even if they're confident with their thoughts are correct, will steer you in the wrong direction. And that's not necessarily because they mean to you or intend to, but because they don't have the experience or perspective to give the right advice. So, my advice to you is to be very careful to choose advisors who have the final 10 meters of experience in whatever field you are asking assistance with; be it property investment, business, relationships; because there are just too many inexperienced pretenders out there. By the way… this doesn't surprise me. I have seen this happen at the beginning of every new property cycle, a flood of new so-called experts trying to make a living giving advice. And while a rising market may cover up some of their shortcomings, I keep coming back to Warren Buffett's saying – "A rising tide will lift all ships, but when the tide goes out, you'll see who swimming naked." In the past, I've written about the fact that successful property investing is part science and part art. There's no doubt that science, theory, data, and research, are very important. But they tend to be useless unle